Asbury Automotive Group Reports First Quarter Results (Form 8-K)

Asbury Automotive Group Reports First Quarter Results

•Revenue of $4.1 billion

•Gross Profit of $724 million

•All-time record Parts & Service gross profit of $343 million

•Third quarter of sequential improvement in same store Used Retail gross profit per unit

•Net income of $132 million; adjusted net income, a non-GAAP measure, of $134 million

•EPS of $6.71 per diluted share; adjusted EPS, a non-GAAP measure, of $6.82 per diluted share

•Announced definitive agreement to acquire The Herb Chambers Automotive Group, the sixteenth largest privately-owned dealership group based on 2024 revenue, with approximately $3 billion in annual revenue

DULUTH, GA. (April 29, 2025) - Asbury Automotive Group, Inc. (NYSE: ABG) (the "Company"), one of the largest automotive retail and service companies in the U.S., reported first quarter 2025 net income of $132 million ($6.71 per diluted share), a decrease of 10% from $147 million ($7.21 per diluted share) in first quarter 2024. The Company reported first quarter 2025 adjusted net income, a non-GAAP measure, of $134 million ($6.82 per diluted share), a decrease of 9% from $147 million ($7.21 per diluted share) in first quarter 2024. During the full year 2024, the Company completed six divestitures that contributed estimated annualized revenue of $225 million. During the first quarter of 2025, the Company completed two divestitures that contributed estimated annualized revenue of $79 million.

"First quarter 2025 results highlighted the resiliency of our business and the focus of our team members as we delivered strong results against the backdrop of tariff uncertainty and unique weather challenges impacting many of our markets," said David Hult, Asbury's President and Chief Executive Officer. "The business continues to deliver and our commitment to strategic growth remains steadfast as we look forward to welcoming The Herb Chambers Automotive Group into the Asbury family."

The financial measures discussed below include both GAAP and adjusted (non-GAAP) financial measures. Please see "Non-GAAP Financial Disclosure and Reconciliation, Same Store Data and Other Data" and the reconciliations for non-GAAP metrics used herein.

Adjusted net income for first quarter 2025 excludes, net of tax, $11 million of non-cash asset impairments ($0.54 per diluted share), $7 million of cyber insurance recovery proceeds ($0.38 per diluted share), $3

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million related to gain on divestitures ($0.16 per diluted share) and $2 million of professional fees related to the pending acquisition of The Herb Chambers Automotive Group ($0.11 per diluted share).

There were no non-GAAP adjustments for the first quarter 2024.

First Quarter 2025 Operational Summary

Total Company vs. 1st Quarter 2024:

•Revenue of $4.1 billion, decrease of 1%

• Gross profit of $724 million, decrease of 3%

• Gross margin decreased 40 bps to 17.5%

• New vehicle unit volume increase of 2%; new vehicle revenue increase of 4%; new vehicle gross profit decrease of 12%

• Used vehicle retail unit volume decrease of 10%; used vehicle retail revenue decrease of 9%; used vehicle retail gross profit decrease of 14%

• Finance and insurance (F&I) per vehicle retailed (PVR) of $2,261, flat to prior year

• Parts and service revenue was flat to prior year; gross profit increase of 3%

• Selling, General and Administrative expenses (SG&A) as a percentage of gross profit of 63.0%

• Adjusted SG&A as a percentage of gross profit of 64.0%

• Operating margin of 5.6%

• Adjusted operating margin of 5.8%

Same Store vs. 1st Quarter 2024:

•Revenue of $4.1 billion, increase of 1%

• Gross profit of $724 million, decrease of 2%

• Gross margin decreased 43 bps to 17.5%

• New vehicle unit volume increase of 4%; new vehicle revenue increase of 6%; new vehicle gross profit decrease of 11%

• Used vehicle retail unit volume decrease of 8%; used vehicle retail revenue decrease of 8%; used vehicle retail gross profit decrease of 13%

• F&I PVR of $2,263, flat to prior year

• Parts and service revenue increase of 2%; gross profit increase of 5%

• SG&A as a percentage of gross profit of 62.9%

• Adjusted SG&A as a percentage of gross profit of 63.9%

• Operating margin of 5.7%

• Adjusted operating margin of 5.8%

Liquidity and Leverage

As of March 31, 2025, the Company had cash and floorplan offset accounts of $204 million (which excludes $37 million of cash at Total Care Auto, Powered by Landcar) and availability under the used vehicle floorplan line and revolver of $760 million for a total of $964 million in liquidity. The Company's transaction adjusted net leverage ratio, which is calculated as set forth in our credit facility, was 2.75x at quarter end.

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Earnings Call

Additional commentary regarding the fourth quarter results will be provided during the earnings conference call on Tuesday, April 29, 2025, at 10:00 a.m. ET.

The conference call will be simulcast live on the internet. The webcast, together with supplemental materials, and can be accessed by logging onto https://investors.asburyauto.com. A replay and the accompanying materials will be available on this site for at least 30 days.

In addition, live audio will be accessible to the public. Participants may enter the conference call five to ten minutes prior to the scheduled start of the call by dialing:

Domestic:			(877) 407-2988
International:			+1 (201) 389-0923
Passcode:			13753098

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 multi-year plan to increase revenue and profitability strategically through organic operations, acquisitive growth and innovative technologies, with its guest-centric approach as Asbury's constant North Star. As of March 31, 2025, Asbury operated 150 new vehicle dealerships, consisting of 196 franchises and representing 31 domestic and foreign brands of vehicles. Asbury also operates Total Care Auto, Powered by Landcar, a leading provider of service contracts and other vehicle protection products, and 37 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, and prepaid maintenance. Asbury is recognized as one of America's Fastest Growing Companies 2024 by the Financial Times and the Company is listed in World's Most Trustworthy Companies 2024 by Newsweek.

For additional information, visit www.asburyauto.com.