Asbury Automotive Group Inc. continues to get pleasure from a income enhance from the 2021 Larry H. Miller Dealerships acquisition, posting file web earnings of $205 million for the third quarter of 2022.
However Duluth, Ga.-based Asbury additionally noticed declines on a same-store foundation, with income at dealerships falling 2.8 % from a yr in the past to $2.31 billion. Similar-store gross revenue declined 2.3 % to $462.7 million.
“This quarter, our crew navigated a difficult macro setting, together with the impression of Hurricane Ian, to drive robust outcomes,” Asbury CEO David Hult mentioned in an announcement Thursday. “We’re happy with the momentum of our progress and our capability to take care of our disciplined price technique, whereas strengthening our steadiness sheet.”
Asbury’s 24 Florida shops prevented “notable harm” to services or stock from Hurricane Ian, and its workers within the storm’s path have been protected, Hult mentioned on an earnings name Thursday. Nonetheless, these places characterize about 35 % of Asbury’s same-store gross sales, Chief Monetary Officer Michael Welch mentioned. Asbury closed places whereas paying workers, he added — actions that may have an effect on each Asbury’s same-store gross sales and its expense ratio.
Although Asbury did not modify its web earnings to replicate Hurricane Ian, the corporate estimates the closures price it 14 cents per diluted share in third-quarter earnings, Hult mentioned.
Asbury additionally improved its new-vehicle stock within the third quarter, holding a 19 days’ provide Sept. 30, in contrast with a 12 days’ provide a yr earlier and a 13 days’ provide on the finish of the second quarter. Hult mentioned on the earnings name that Asbury’s third-quarter stock stage partially displays a burst of deliveries held up by Hurricane Ian. Asbury had a 31-day provide of used automobiles on the finish of the third quarter, in contrast with a 28-day provide a yr earlier and a 34-day provide for the second quarter.
Asbury Automotive Group purchased 61 Larry H. Miller franchised and used-only shops plus finance and insurance coverage merchandise supplier Complete Care Auto as a part of a $3.2 billion December 2021 deal. On the time, Larry H. Miller was ranked No. 8 on the Automotive Information checklist of the highest 150 dealership teams primarily based within the U.S., with 61,097 new automobiles retailed in 2020. Asbury was No. 6 on the checklist on the time, transferring to No. 5 on the newest Automotive Information checklist, with retail gross sales of 109,910 new automobiles in 2021.
Asbury offered seven Toyota and Lexus shops within the first half of the yr to adjust to automaker store-count limits. It held 148 new-vehicle dealerships consisting of 198 franchises on the finish of the third quarter.
Different outcomes from Asbury’s third-quarter earnings report Thursday embody:
Income: $3.87 billion, up 61 % from a yr earlier.Internet earnings: $205 million, up 39 % from a yr earlier.Adjusted web earnings: $205 million, up 43 % from a yr earlier.Car gross sales: 36,497 new automobiles, up 47 %; 38,874 used automobiles, up 40 %. Similar-store car gross sales: 20,580 new automobiles, down 16 %; 24,774 used automobiles, down 10 %.Information: Internet earnings, adjusted earnings per share.
