The following is a summary of the Asbury Automotive Group, Inc. (ABG) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Asbury Automotive Group reported a Q2 2024 revenue of $4.2 billion with a gross profit margin of 17.2%.

• Adjusted operating margin was 5.6% with adjusted earnings per share (EPS) of $6.40.

• Adjusted net income for the quarter was $236 million, influenced by a mix of non-cash asset impairments and gains on divestitures.

Business Progress:

• Despite challenges from the CDK outage, the company leveraged its omni-channel platform, ClickLane, to facilitate sales during the disruption.

• Asbury repurchased 193,000 shares for $43 million in Q2 and an additional 160,000 shares for $36 million in Q3.

• The company plans to roll out TCA across new markets later this year.

Opportunities:

• Continuing to enhance and expand the functionalities of the ClickLane platform as it played a crucial role during operational disruptions.

• Targeting the integration and growth of recent acquisitions and the strategic divestiture of two Nissan stores.

Risks:

• The CDK outage significantly impacted sales, specifically new and used vehicle sales, which subsequently affected the F&I business and parts and service volumes.

• The recovery from the outage involved significant efforts and costs, with an estimated impact of $0.95 to $1.15 in diluted earnings per share.

More details: Asbury Automotive IR

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