Asbury Automotive Group Announces Record Second Quarter 2021 Financial Results

Second quarter EPS of $7.80 per diluted share, up 204% over prior year EPS

Second quarter adjusted EPS of $7.78 per diluted share (a non-GAAP measure), up 209% over prior year adjusted EPS

Second quarter revenue increased 79% and gross profit increased 105% over prior year quarter

Asbury Automotive Group, Inc. (NYSE: ABG), one of the largest automotive retail and service companies in the U.S., reported record net income for the second quarter 2021 of $152.1 million ($7.80 per diluted share). This compares to net income of $49.6 million ($2.57 per diluted share) in the prior year quarter.

The financial measures discussed below include both GAAP and adjusted (non-GAAP) financial measures. Please see reconciliations for our non-GAAP metrics included in the accompanying financial tables.

“This quarter, new inventory supply continued to be unpredictable, but our teams met the challenge and performed at record levels in revenue, volume, margins, net income, and EPS. In addition to this record performance, our online car buying platform, Clicklane, now fully active across all of our dealerships for the entire quarter, is exceeding our expectations, with its growth trajectory ahead of target,” said David Hult, Asbury’s President and Chief Executive Officer. “We are tracking well to achieve our strategic five-year plan.”

The Company reported adjusted net income (a non-GAAP measure) for the second quarter 2021 of $151.7 million ($7.78 per diluted share) compared to $48.7 million ($2.52 per diluted share) in the prior year quarter.

Net income for the second quarter 2021 was adjusted for real estate net gains of $0.5 million ($0.02 per diluted share).

Net income for the second quarter 2020 was adjusted for a $1.2 million ($0.05 per diluted share) legal settlement gain.

The Company reported total revenue for the second quarter of $2.6 billion, up 79% from the prior year period; total revenue on a same-store basis was up 50% from the prior year period.

Second Quarter 2021 Operational Summary

Same store vs. 2^nd Quarter 2020:

• Revenue increased 50%
• Gross profit increased 72%
• Gross margin increased 250 bps to 19.3%
• New vehicle unit volume increased 42%; used vehicle retail unit volume increased 29%
• New vehicle revenue increased 52%; gross profit increased 162%
• Used vehicle retail revenue increased 53%; gross profit increased 96%
• Finance and insurance revenue and gross profit increased 48%
• Parts and service revenue increased 41%; gross profit increased 48%; Customer pay gross profit increased 59%

Comparable store vs. 2^nd Quarter 2019:

• Revenue increased 23%
• Gross profit increased 46%
• Gross margin increased up 290 bps
• New vehicle unit volume increased 11%; used vehicle retail unit volume increased 10%
• New vehicle revenue increased 23%; gross profit increased 172%
• Used vehicle retail revenue increased 34%; gross profit increased 88%
• Finance and insurance revenue and gross profit increased 30%
• Parts and service revenue and gross profit increased 7%; customer pay gross profit increased 9%

Liquidity and Leverage

As of June 30, 2021, the company had $576 million of liquidity (including cash of $102 million, floorplan offset accounts of $75 million, and availability under our used vehicle floorplan line and revolver of $399 million). The company’s adjusted net leverage ratio was 1.6x at quarter-end.

Additional commentary regarding the first quarter results will be provided during the earnings conference call on July 27, 2021, at 10:00 a.m. ET. The conference call will be simulcast live on the internet and can be accessed at www.asburyauto.com. A replay will be available at this site for 30 days.

In addition, live audio of the call will be accessible to the public by calling (800) 353-6461 (domestic), or (334) 323-0501 (international); passcode – 6678848. Callers should dial in approximately 5 to 10 minutes before the call begins.

A conference call replay will be available two hours following the call for seven days and can be accessed by calling (888) 203-1112 (domestic), or (719) 457-0820 (international); passcode – 6678848.

About Asbury Automotive Group, Inc.

Asbury Automotive Group, Inc. (NYSE: ABG), a Fortune 500 company headquartered in Duluth, GA, is one of the largest automotive retailers in the U.S. In late 2020, Asbury embarked on a 5-year plan to strategically increase revenue and profitability through organic and acquisitive growth as well as their innovative Clicklane digital car purchasing platform, with its guest-centric approach as Asbury’s constant North Star. Asbury currently operates 91 dealerships, consisting of 112 franchises, representing 31 domestic and foreign brands of vehicles. Asbury also operates 25 collision repair centers. Asbury offers an extensive range of automotive products and services, including new and used vehicles; parts and service, which includes vehicle repair and maintenance services, replacement parts and collision repair services; and finance and insurance products, including arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection debt cancellation, prepaid maintenance, and credit life and disability insurance. For additional information, visit www.asburyauto.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than historical fact, and may include statements relating to goals, plans, market conditions and projections regarding Asbury's financial position, liquidity, results of operations, market position and dealership portfolio, the expected benefits of Clicklane, and other initiatives and future business strategy. These statements are based on management's current expectations and beliefs and involve significant risks and uncertainties that may cause results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, the impact of the COVID-19 pandemic, market factors, Asbury's relationships with, and the financial and operational stability of, vehicle manufacturers and other suppliers, acts of God or other incidents and the shortage of semiconductor chips, which may adversely impact supply from vehicle manufacturers and/or present retail sales challenges, risks associated with Asbury's indebtedness (including available borrowing capacity, compliance with its financial covenants and ability to refinance or repay such indebtedness, on favorable terms), Asbury's relationships with, and the financial stability of, its lenders and lessors, risks related to competition in the automotive retail and service industries, general economic conditions both nationally and locally, governmental regulations, legislation, adverse results in litigation and other proceedings, and Asbury's ability to execute its five-year strategic plan, IT initiatives and other operational strategies, Asbury's ability to leverage gains from its dealership portfolio, Asbury's ability to capitalize on opportunities to repurchase its debt and equity securities or purchase properties that it currently leases, and Asbury's ability to stay within its targeted range for capital expenditures. There can be no guarantees that Asbury's plans for future operations will be successfully implemented or that they will prove to be commercially successful.

These and other risk factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements are and will be discussed in Asbury's filings with the U.S. Securities and Exchange Commission from time to time, including its most recent annual report on Form 10-K and any subsequently filed quarterly reports on Form 10-Q. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.