ABG - Earnings call 4 2023 | Asbury Automotive Group, Inc.

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Operator

Greetings, and welcome to Asbury Automotive Group Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Chris Reeves, Vice President of Finance and Treasurer. Thank you.

begin. may You

Unknown Executive

good and Thanks, morning. operator,

Vice Earnings As noted, results, be Automotive issued recorded release XXXX will earlier this is for call Group's Asbury's replay quarter Quarter Asbury being available investors.asburyauto.com. to Welch, our President later and and Dan today Clara, President Welcome press Senior with Vice and today's this fourth are our Chief David posted on Participating and Officer; The is Hult, Call. Operations; Executive Michael and of morning Fourth detailing Senior website at Officer. Financial me our afternoon. President Chief our

At for remarks, questions our for we call be will up available later the the conclusion and questions. any will of follow-up open

the likely today discussion during Before begin, we the to forward-looking that is statements. we must you contain call remind

which subject statements Forward-looking which of include financial statements are expectations, significant forecasts than to which uncertainties. may other each historical nature, current and projections, are in are those

For materially may information with from regarding certain including results time December our for year XXXX. to these our the ended please from to filings SEC the time, that see actual cause XX-K statements, Form of the risks differ

XX-Q As update today. quarterly report subsequently on our responsibility reports earlier any release earnings forward-looking issued We Form any filed disclaim expressly and to statements.

financial In SEC rules defined call. non-GAAP as addition, may certain this under measures be discussed on

our GAAP of on provide As comparable such non-GAAP any required measures measures we financial the by reconciliations SEC directly applicable to most rules, website.

website, highlighting highlighting fourth our have also updated -- quarter We our quarter fourth on an presentation investors.asburyauto.com, posted investor results. our

CEO, pleasure the David David? to my over hand our now to is It Hult. call

David Hult

of that were quarter companies. meaningful stores. recognized XXth call. was morning, with ranked Midsized accolades. M&A growth growth also good year, Companies Greatest on Newsweek, a retailers Best of U.S. work Chris, receiving productive honored industry This several Best And in one was our named fourth you, and of Work Welcome earnings was X- America's rating We of America's as with to were by for us alongside everyone. Workplaces XXXX the distinction. the auto reflection hard within by this awarded Forbes to X a recently XXXX be named we to from Koons based to on and we our were X-star year. list For Newsweek, reviews. retailers' named A year-end XXXX Thank company few and our by

externally. News start and It most affirmations are These World Report. the it you our great automotive internally journey must be retailer. on before see to can guest-centric

revenue, consolidated $XX.X of for XXXX. full results profit delivered for year billion Now gross our margin We XX.X%. the in had of a

Our an adjusted adjusted gross of of SG&A X.X%. as generated We was profit XX.X%. margin operating percentage a

our Our and adjusted per was EBITDA earnings $XX.XX adjusted share billion. $X.X over was

million, adjusted for repurchased the In $XXX addition we shares operating million Koons to of we flow X.X produced an $XXX million. cash acquisition, and

pleased to strong Looking best laid to has balance The capital our we deploying the initially running with operations. sheet years. very we acquired have far, markets vision circled of $XX for including what strategic we billion into many significantly to since disciplined evolved to out the are XXXX, and its our world and achieved future, to of growth use have and and committed December entry we for strengthening we in are so revenue highest

a it inform when to that path, time it. the may impact matter us factors our think acts consider serving if. realistic is vision us, rather strategic but how to of to a our the We vision to line along continuously not it for To journey, achieving we believe decision-making $XX about have billion think greater or revenue. This smart macro This adapt about business, this we for than more strong convictions our for growth. framework we framework in of allows how

good being capital allocation, such capital same-store an members balanced and the with We when discipline to great and activity. as our opportunity opportunities operators business in and We acquisition a a team of group plan with M&A outstanding growth market Koons. deploy of through accelerating by fortunate make prioritize to great arises, seeking we As were leaders.

continue acquisitions strong to details We and are vision will assets and we with our of franchise presentation. quality forward, to operators performance. state in and friendly additional Going caliber. for portfolio framework updated our seek about markets our this and investor optimize with There plan demographics laws

to Thank over for much. work. again team call our my like and members very express their guest Before for Dan, experience to I all continued on you appreciation the once all hand the hard their I'd focus

performance. Dan our discuss Now operations will Dan?

Dan Clara

delivering Thank start experience I'll you, retailer again members once are by our David, and the who and on most focused success. automotive everyone. our off ensuring good guest-centric thanking team morning,

to new TCA same-store moving performance, includes dealerships with stated Now unless Starting which and vehicles. otherwise.

the XX same-store of X at days Our supply new day days increase end was December, from September. an of

month day a sales on it us impact December has for As reminder, supply. a and positive a good is

continue variation day day and models disparity continue vehicles, XXXX same We to best as supply know combustible we even the hybrid don't electric We and will wide to in brands. what but bring, manage see can. within will among supply, we

Our performance. new vehicle generated solid business

year. revenue For the quarter, quarter the XX% and same-store X% in the grew for

X% the units grew X% New and quarter volume overall. in fourth

quarter. per was $X,XXX profit the gross average New vehicle in

the year. gross was X.X% margin quarter X.X% vehicle for New and this

the to quality and profit full decreased gross XX% Turning was and year. driven Used year quarter the down $X,XXX both quarter retail in volume Used the for per vehicle environment cost-effectively quarter, vehicles. constrained revenue retail as by was a used for source XX% vehicles. full unit to

at supply. days acquire of lease XX vehicles from. pool tough to small was a XXXX to and as rental fleets DSO used We're with preowned a year looking same-store Our

And We year-over-year. in this number XXXX. contributed Shifting decrease in the throughout revenue F&I to a interest headwind payments. to year, of consumer an quarter, The PVR $X,XXX of headwind in $XXX delivered TCA of to last same-store pressure rates F&I $X,XXX compared the F&I. of higher grow will reflection the deferred PVR PVR

the was $X,XXX. For the was funding F&I yield $X,XXX. In our total quarter, vehicle per full year, same-store fourth PVR

Moving to Service. Parts and

gross flat in Parts $XXX with XX.X%. up line revenue comparable Parts down stores, million was profit Service and brought Our the year earned the X% an $XXX Non-converted of total company quarter. business. We will and quarter, Stores in uptick to quarter. gross was prior conversion prior went margin the business year a in for million, quarter, Gross was profit the to that quarter. see in Service through we our and we believe first profit

For X% same-store with the we and gross gross XX.X%. full generated year growth revenue in of a profit margin profit, year,

quarter. XX% units retail progressing is a in year-over-year total posting growth Finally, Clicklane well, prior versus year

have and in new shift which penetration, we in and versus are Clicklane vehicle year. the units of the the forward. XX% quarter of grew in to on We growth the We seen focused committed Clicklane XX% are pleased remain about prior total excited the by fourth path

part which As become on, dealership a more our integrated to time ways of model, our many it has guests serve to is the choose shop. in gone has they

makes sense within it of about forward. scope so larger speak going our it the performance to And

Michael? hand discuss over I now will performance. the to call to our Michael financial

Michael Welch

Thank would good financial on members for other company. some participants you, to I like and investors, To Dan. highlights analysts, provide morning. our our call, team our

diluted the divestitures and tax income in at that of the to state rate related which $X to a noncash million. primarily related and net financial professional million acquisition stores $XXX deferred by Carolina the net $X.XX On due quarter $X.X Adjusted the dealership of EPS asset $X.XX revalue noncash of fees was today tax of of increased impact rate our significant a $XX.X to tax state supplement on full net quarter quarter onetime increase quarter our of in deferred and of year acquisition acquisition fourth our of additional effective tax increase adjusted the estimate our our the $X.X million had share. quarter, gains related asset We Adjusted The million net our related XX.X%, EPS the an The financial press companies. of of to XXXX an adjusted included quarter. in XX.X%, expenses $XXX investor quarter for $XXX,XXX see future For for items rate XXXX automotive income on adjusted basis, XX.X%. or estimated and was XXXX materialize was for on quarter performance rate. fixed the net to our for tax for our this excludes fourth we excludes website. million fourth the North impairments, tax tax the the These did please million write-offs for release income per tax liability was net impact . Koons. fourth our tax was $X.XX. not rate and XXXX to net details for presentation Koons the Overall, for

income. pretax of million $XX generated TCA year, full the For

and For for decrease Florida income of Due $X.XX states $XX completed policies stores XXXX, to million, rolling and recently $XX we with impact anticipate and TCA be revenue $X.XX per in Koons. XXXX, between to We our the except rollout all of OLED to pretax or and implemented share. markets million the off. increased deferred between

mid-XXXX. believe deferral XXXX behind and We expect of headwinds to We most will the be revenue remaining effect us. the TCA impacted complete stores are the by until XXXX with

$XXX generated us make to a million we enabled acquisition. operating year, shares full the flow, repurchase adjusted which For sizable and of cash

the $XXX XXXX. real million expenditures for flow purchases, Excluding million. on $XXX we spent capital in cash estate Free was year

comprised by XXXX the excluding in higher floor revolving cash quarter be CapEx a We accounts over to and relocations. million for liquidity offset We count near-term relative to through We for approximately at the need few of facility. driven plan store facility expect higher for ended our cash, our which on elevated past activity availability CapEx partially prior year. of years, $XXX years, total credit is driving M&A with million CapEx and plan $XXX per

offset balance we our the fourth acquire As reminder, floor plan sheet utilized Koons quarter. to existing accounts including liquidity, in a

had plan $X of after floor For interest the in million we of deal the mid-December. the incurred quarter, mostly closing expense, expense

in plan accounts. an will plan expense balance We floor interest have will we have amount XXXX a lower offset of floor in elevated our since

net XXXX. to leverage buybacks approximately the said, will That acquisitions. of allocation, X.Xx opportunistic Our end anticipate pro leverage including Xx forma we at was and remain capital end and we with of adjusted the share bringing by December, back

beyond look thanks would to brings. and our and Finally, extend team for the to year leaders what Thank through to like strong my and you. members valued a XXXX growth process forward I

our prepared concludes remarks. This

turn take now call will and We your to the over questions. the Rob? operator

Operator

Stephens. first Imbro [Operator Instructions] from question comes Daniel Our with

Daniel Imbro

of a David, longer-term maybe one. one sort

has as about thought world the changed. mentioned long-term you You targets, obviously

Clicklane. Clicklane. I talked think can multiples, around a progress is bit you little about disclosure you're guess about on seeing less I just the talk M&A the slides there but

longer where the are that there them If if term, And achievable? you maybe is talked with contribution challenges, about seeing still like feel you previously you're product?

David Hult

a from in can Dan tool, states in it wants. our time We love vehicle we then purchasing Daniel. online. we've optimistic as by I'll seen flows in were, that and that business We and good consumers brand, our with cases, grow tool. going is with consumers as to going manner. it's over the it valued The was if to guests what I higher and than very going a We the and far. jump comfortable do best COVID so the currently very Sure, us part software. vehicle very transparent the grows our be We option and I and but sales still can, think to ebbs more a adoption love of continue it acquire vary love through the is a get by think, today, percentage he be a a it gives will fast some of to it and

really or price know selling all at was a we COVID MSRP. X through As times, the everything

Now that forward. that and would a are standpoint, the prices little negotiation challenge normalizing certainly Clicklane of bit more a softening which creates going

for to territory We over a Clicklane. pricing we're But appropriately with the new make sure have defection we with entering markets so built algorithms on that have used that there this new isn't price. and vehicles the priced both something within is

to we as go. monitor have we'll So it

Dan Clara

script, my Daniel, I'll with -- this in what Clicklane, committed happy I we Dan. very add that seeing. we grow as to are that to continue is just stated we're

of being think And credit since we I point at is Clicklane, that continued all where we our that actually, exception. at item rolled of score that we've of was we higher one score the always last the get trend highest than since out stores. to there saw quarter talked the quantity exception credit year. the Clicklane, And out that That XXX. is credit ever about not

And a to continue shift traditional of enjoy consumers percentage higher around. of cars. continue to the transaction coming So a see of acquiring we time to new time new with vehicle. inventory to cars transaction to We're back see that starting the compared really

David future. agree So everything with I And excited for that stated. the has

David Hult

last online. tool one to And went online was consumers thing an it, launched and we When add. it solely through it

that information, social the their starting sometimes Now in models, showroom personal home, don't putting we've information, financing finishing is give sometimes It's in count increasing. they journey their just software coming customer us we showroom, But all security. social deal. and standpoint, the really in their if online the doing from didn't built our at the engagement personal the sometimes sale the that's

looking So pricing information, to tool that for the at give if in getting us their they didn't their us. personal there They and just were in social there. put count had

Daniel Imbro

and to you Dan, in as heard that Parts a follow-up, And a in maybe first right. we in the sense. if quarter, expected makes mentioned prepared think I Service pickup all your you remarks, see No,

the discuss that do through what Just the color those And on comps they Just visibility? can great. you improve would Have there integration, gives given quarter? while the were you shoots any integrated yet? with you be the ongoing seen green negative the challenges stores,

Dan Clara

should progress did Yes, Miller it my do of way business we Daniel. and about -- amount see of question that the to on script. be stores the tremendous yes, you bought West stores people to but When that think business not in And Yes, we're starting of I further tremendous question, were doing state on your and amount Coast, talent, stores we answer stores. the Liege with the of amount so, the today. up happy technology the that to tremendous doing to a

to And and working it have being takes present have to to with, to major then so first that and develop enhance the It the quarter, a properly I better a to stated to used been time starting coach, we're what see that's train technology to guest why get we on stated to diligently script. progress. expect that's guest. new see further integration. experience, That's and And I of as and part use -- to people the able it the the

David Hult

up nice the We that, increase And across a over January January just Daniel, follow to is saw in now. company. on year-over-year

as stores we've Denver So some us a that that is that of lot got right time the a Salt weather gives X, and direction. in headed hope It's we're or of and year in Lake, well. challenge

in in know we but I and store quarter had through when fourth and is all in our weather nice we've rest seen members that of what the We quarter of smoothly. So to us for be convert go don't the go going the you progress frustrated a certainly and January. never software lot January, some in team some

point. other a frustrating through. pretty this you're painful your go frustrating at So on it's employees, to you're just process your But guests, and we're the of much that side

Daniel Imbro

improvement? on just shifting around on Discussion to and the comments that, January your clarify was the just

David Hult

out. All cut heard Dan, I improvement. I'm you sorry, was January

Daniel Imbro

around XQ. improvement was the this benefit about talked you January, There's part year in any Was you timing there think? calendar discussion holiday Yes, been some of there? through just just do the any that Sorry. in

David Hult

I had say because in we negative we -- No, January weather. some some wouldn't the in were lost that days and with impact

So that's like issue. of kind not feel I an

Operator

with question Bank Our comes John next of America. Murphy from

John Murphy

we I'm hope here we not you you if bit business, or minutes look just so I'm to the a in or I of been the you've recently, sort it But about below if XXX, function recovering the after close that I more a dynamics, X.X:X. mean kind could covered. had just is actually covering of David? thing started, got call I at curious gotten but acquisitions just X:X X about that's that, that used of the on stuff market above little think

David Hult

need a profit expect aren't than 'XX, profit right in jump aggressive for when acquiring of because start. off-lease acquire stand we I at not have average a gross on we've in. coming or We lot And retail XX.X challenging lot the a a focused off. when this would conservative have lower purchase lot gross in We've a had it's sale. on of too to we is inventory your vehicle, I'll than take John, it Naturally, And coming age or David be trade-ins in just more years, the and trade. to volume. been is acquiring sometimes approach vehicles. can wrong, still we as and our reminder, is vehicles. more Dan and say of take the conservative. when be are I a there's may fleet not vehicles There's that trade trades a of you

still it'll But more be stance that I pick volume. think more a pool a we So to from. creating take time tight on it's aggressive

Dan Clara

a benefit David. volume. We John, with agree stance. The I of -- -- more additional we're I would taking the aggressive understand the

another up up the you pick parts pick and You F&I service, well. reconditioning unit and as operation market, you in then the in put

more committed go aggressive we're to stance as 'XX. we a So into

John Murphy

a And are bit fair mean then because and at XX% on and a It's necessarily question not second little change. you just SG&A.

You're of and to doing that where in peers, very you slippage but well absolute a some to have your was little relative of been. bit a relative terms

to think and small things going Just was Koons a bit, some slippage, that in have there what's mean drivers it's distraction where And I let the But good was going see you we what performance. absolutely, that deal curious, the there? again, slip slippage some once David, of on been. could as you XXXX. maybe on relative little maybe improvement that

David Hult

trying because number spend a some more end. on is depreciation. We're the John. spent normally things quite nothing of about per do we we honestly, stance had it to a Koons and vehicles in No, aggressive advertising in David. lot acquisition And than our took more Sure, self-inflicted, loaner was on the quarter optimistic different This We it. with car. what

controllable So expenses those have. we X are that

about items had think X we those our we comfortable but where really and an we Michael, don't the came past, want and in that line other if costs personnel overall to expenses with when you I on mentioned So comment. I consistent were that we know impact have, SG&A.

Michael Welch

kind a I next mean is that to level we're we for have comfort think year. range comfortable XX% I still Yes. XX% of

some to expenses. of is more it The other that gross thing ops back, provides comes fixed just cover those fixed profit

fixed in decline the so SG&A And also number. the ops impacted

Operator

question Capital Sigdahl is Ryan Group. next with from Craig-Hallum Our

Ryan Sigdahl

go to vehicle guess thus changes I of notable to XXXX? want guess, GPU, new kind GPU expectation And normalization? then over in that, second your Just any I the OEMs what's pace overall for far by to of

David Hult

Ryan. Sure,

days pickup supply. for As the in the and day for in supply. down Dan that the the had it in a looked mid-teens December supply you in the We still was low imagine, us day brought really But as can quarter. stated, Toyota sales Honda

So margin. margin so can there. Nissan, days you imagine certainly impacted in higher up naturally, had the supply held that We a the

We Rover, supplying others But hard obviously meeting Alexis, with brands margins That Porsche, some in XXXX. well. up as margin And have a you Land above the with see our can and we Infinity. to day really impacted other Mercedez like significantly held Lantus. felt

gross But pretty story both new brand, think for So in the car space volume. we're we certainly. on really our by good a varies profit and business,

Michael Welch

on kind of This just glide your comment for we've quarter. a on path a And XXX seen expectations 'XX.

'XX kind to to expect of continues inventory as that through We continue build.

Ryan Sigdahl

talk platform. DMS Good. CDK there about, previously? I you're what guess, to switching technology, you gain to Can looking over Then just versus Tekion's

David Hult

what create been a to together This with excited. a DMS. talking would is overcome fairly the years. company, X in over on end do cloud-based Working Tekion Absolutely. and new and for our of to need Tekion David. obstacles we're them relationship. both us We've to is is mind, Keep

not. other companies amount bolt-on DMS The tremendous unfortunately, software other The technology legacy the with a DMSs, are applications. require of

have make you guest. to the if what applications go So which again, you're the find you And to our which sales pod in business efficient them about that the make What X to one guests. of can't process, in for internally the they and will on -- see you're on of that XX% with easier have service another the doesn't one efficient same opportunity the building take a quarter. with stores you in now, in open to internally have, in transactions any profile we the see launch different we other bolt-ons which with to the you doesn't Tekion, our they and But make with a or our of software stores store with to teams, or it the base third will communicate Tekion, if we'll keep stores in store. is allow communicating Atlanta, at us, customer off prior time, also With Atlanta, thing that multiple in right we're at we'll folks stores did Tekion, us. did and our beneficial customer working you that one customer in any when working XX%

employees, So efficiencies experience. productivity and a be to guest better efficiencies there's with going going going in marketing, to be there's to there's in be

Our be software really our folks comfortable because one and belief of will with them. more base out interacting living is

Operator

Our with from Rajan next question JPMorgan. is Gupta

Rajat Gupta

had kind quick you I XX% assumptions of are a quantify have new SG&A like based follow-up. growth maybe a some for could couple used and underlying that those unit And that new XXXX, previous GPU like even Great. on the questions. assumption just The comment or what and to follow-ups to just of XX% of expectation? know used I

Michael Welch

Yes.

on stated $XXX kind we margin, of new a this -- quarter. we've decrease As the seen

that expect We in 'XX. to continue

to try that quarter next Again, the our steady step been little higher. down just a somewhere of for vehicles expectation to Used year. bit in with we're line That doing. push volume what each going $XXX. we've So is

same will that that not the the in been. low range low we've margin the we're just -- keep that on so And side,

we've is seen there there SAAR. looked is the SAAR piece kind kind of that we've range of XX% XX% the out is SAAR, for For what at to

vehicle is volume XXs new perspective. a So what expecting we're from in the something high

of down flat on quarter, each is high in are of coming staying $XXX and . then with drivers new in those those kind assumption XXs. SAAR used main with profit growing those vehicle new, vehicle So unit gross the the

Rajat Gupta

helpful. just That's it. the had this this following question. And Obviously, Got it. on Tekion you've Got transition.

the on quantify out done, I board. take and to all are it's across will Tekion kind mean, stores think not to of savings or there rollout just bring, like And this efficiencies while factor -- is will this to any this might numbers what like the you any around and I roll happening? redundant expenses When be that? going is while said in

David Hult

Rajat, comfortable At that have we're we would this this anticipate expense. number, of software application but tailwind to SG&A because David. our of is lack time, you X a or not tell in quoting of the I for we'll most out a part, nice the DMS bolt-ons X working

we X in service on our shared quarter, launch As East center Coast. stores we'll -- third the

start in allowing they of that coming is company. convert, of just the will well, the the roll end goes run be the would because beginning of to the kinks. 'XX. through them on, anticipation year, we of to rest And Our out most 'XX, sometime acquisition the the we if converting work all to the out Koons would and see early ones recently last And

rolling Tekion, We lot well if Koons with with stores, it get really of through we done. 'XX. all finishing believe which getting January anticipate we and we're are, our a in we up the early progress good with working So part out them

Michael Welch

be would 'XX. that much perspective, savings in expense an from not so And

There A the cost capitalizable. of more of savings. be of of play 'XX things piece for kind be implementation that will this expense a some it's So will 'XX, year. those for

of So system. there'll couple the be out rollout of million just expense for this dollars a year the building

Operator

comes next Chin [Operator Our Research with Partners. Seaport question Glenn Instructions] from

Glenn Chin

some revisiting comments. just earlier So

stores. TCA group Miller first, incorporated, been would H. Larry the you So integrated on has Miller H. Larry but fully consider now? like stores sounds the It those

Michael Welch

of So were rolled the integrated Asbury stores legacy on out integration already more TCA as we coming as TCA, they part LHTM that fully was the the into stores. across the So with TCA,

have Asbury been that so It's And in. legacy the stores been rolling always

do Koons, this on left Florida then year acquiring year. to midyear Koons roll as have We And well. this will

to are on. those last X come So the of kind

Glenn Chin

I they into for great. That's are now? I that. But Asbury apologize otherwise, integrated fully misspoke,

Dan Clara

Asbury. integrated Dan. is this are Glenn, fully stores Yes. to LHM Yes, the

David Hult

There we conversion a out And is software but are now, fourth. into that the DMS our to amount. rolling rolled Parts a out -- handful There are of we and it's in Service third DMS. right of then the place very the stores just kind a took small bolt-on quarter left mainly

Glenn Chin

And Very going any strike? impact there from the parts UAW good. Okay. back then just was to discernible and service,

Dan Clara

when had We I -- -- We would the with an to There say challenging impact. no. was I was it keep was lack guest it not But up say availability material. parts. would had experience we the of of

David Hult

impact our impact union had But that honestly, peers, like quite some some But we certainly we on with had parts. parts OEMs with don't have issues.

we're receiving from a and ebbing when So parts. flowing it was the parts just an of with year standpoint, odd end

Glenn Chin

historically good. your I which sounds like targeting your Xx? Xx target. Okay. to X.X target, is on below leverage end of the longer-term is by you're lastly, to mean, that a But just And what, revision then in think Very It year. I

Michael Welch

we back normalized get to vehicle new and the is when of mean to margins. a SAAR normalized I Xx kind No. X.X

we not back revision repurchase down an this on way as a afraid to Xx that. still that. spend quoted to So if ready be in acquisition, and share from see work or but to wouldn't script, that's want our a to perspective also from to year, the buybacks, something We money we acquisitions I do be sizable share

work money back from spend on but to something the makes that Xx, those don't our those items we this if way not to year. things, up sense afraid a we'll comes if down perspective, So see capital we're allocation

Operator

Jefferies. from with Jordan question Bret is Our next

Bret Jordan

a question is talk on you inventory could from by to One, vehicle seeing brand. side on the follow-up GPU an and going what I'm maybe the And battery GPU? bit about you're electric really ask

back about profitability? being relatively Spolantus the levels? base talked kind looking new to You've historic and Are those high of GPUs above inventory pre-pandemic levels. the is Nissan like Or

David Hult

brands very comparing had healthy, The gross car in to hit it about Dan Salantis far them and talk good. domestic, good again, just still and the they a profit profits, 'XX, Bret. and Infinity PVR. significantly But per luxury X It's good peers vehicle, going import, weren't as that the they all say, I'll above, are in you extremely some biggest impact could to their stuff. question, as backwards their meaning if the numbers compared mentioned, of Nissan, electric as of gross XXXX, -- you're overall, they spaces, and were great

Dan Clara

about all EV, to -- answer try I'll to Dan, questions asked you a question. the give you it's great

want. total let I the you as the a color DSI, me X% at about When inventory, it's miss of you I'll that percentage know. So you look in vehicle something, range. our hopefully, If give electric please

so just other numbers. as mind that keep in And discussing the I'm

Our QX day new for the in arena, car days days about car the did saw XX%. and XX was We an electric see an used increase we of XX increase to specifically supply from arena. about QX supply vehicle in QX,

there's news sales and slow to here, out obviously, no inventory EV So but starting down the build. starting to

can. managing you anything on? color that . Did So I else best to miss we're as want we

Bret Jordan

trajectory of talk how Yes, of about, the GPUs guess, you on if you could I just battery sort side? see the

Dan Clara

Yes.

or a word, of EVs, adopters that, aggressiveness phase from serving dealership there's been right more And what's us, pricing the is I at that what level. have we more, a facing now early the behind think So lot standpoint. the lot a that's

institution much from deals lower on factor, work of or do when the little to vehicles than pretty or residual GPUs discount the and more in leased leases, of and these a are we we're puts that which the being most aggressive ICE we're be traditional OEM to cars our working combustion ICUs a and expect So having engines. in get than bit the pressure lender

Operator

Our Morningstar. David next from is Whiston question with

David Whiston

item? impairments a what goodwill you Can franchise for about and the bit talk the special

Michael Welch

Yes.

So annual that's Nissan mostly and we With of company. have Nissan for Stellantis going Stellantis related and to interest rates our that the in stores. in our that's increases to calculation impairment our do But to testing. WACC related our primarily up, stores kind our

David Whiston

Okay.

at questions that. Looking on profile, your X debt

to you've got of XXXX lot due bonds First, a XXXX.

keep piling more debt time at future. not you like the already into where frames you're if do X-year a in be those point the So at might you just soon this, deals can't point to

to M&A? are XXXX? just Or hands bonds after big issue in your do you that So mature tied want

Michael Welch

annual cash M&A and mean, our with go and that buybacks. I out an basis, capital generate flow Yes. share we on provides we sufficient to do that think

at So a those onto those to those opportunity bonds we're in add not continue as refinancing years to more looking more debt bonds.

we So do mortgage to have the did bought our acquisitions. of kind We our estate. flow activity. We some mortgages not that we Koons use do free cash real when kind

typically it mortgage when properties lower we this do level. option to we not all level just for did at debt in bought We of to have mortgages the case, we so the mortgage keep property. a that put And kind the

David Whiston

over maturities, that debt, just point some you on to eventually the bond? then debt you XXXX at mortgage all refi the with sticking that debt a years? And X $XXX do to want look million, in just Or retire

Michael Welch

most likely that, We'll No. mortgage. just flip the with continue

group. a good We our bank facility with have

group bank our just refinance the on that with mortgage side. we'll so And

David Hult

the today. appreciate to earnings We after Okay. Have our call year-end. speaking you day. quarter. the a quarter for fourth look first you us forward great This in joining with We concludes

Operator

This concludes today's conference.

You may this time, disconnect we participation. and lines your your at for you thank

Asbury Automotive (ABG) 8 Feb 242023 Q4 Earnings call transcript