Asbury Automotive Group Inc. overcame a limited supply of new vehicles to generate record third quarter net income, a period also supported by Asbury’s acquisition of Park Place Dealerships in August 2020.
Asbury ended the quarter with a 12-day supply of new vehicles, the company said on Tuesday, up from a 47-day supply at the end of the third quarter of 2020. At the end of September, it had 28 days of vehicles worth of vehicles. ‘occasion, compared to 35 days a year earlier.
Asbury’s average selling price and gross profit per vehicle also skyrocketed during the period. New vehicles sold for an average of $ 45,612, up 17% from the previous year. Asbury sold its average used vehicle for $ 29,671, up 20%. The gross margin of new vehicles more than doubled on a unit basis.
The third quarter also saw Asbury announce that it would buy dealers Larry H. Miller and finance and insurance provider Total Care Auto for $ 3.2 billion in a deal expected to be reached from here the end of the year. Asbury said he plans to end the year with acquisitions representing annual revenue of $ 6.6 billion, including $ 5.7 billion from Larry H. Miller, of Sandy, in the Utah.
Asbury CEO David Hult on an earnings conference call said Asbury is expected to close Arapahoe Hyundai and Genesis of Arapahoe in Centennial, Colorado on Tuesday. . He said that group’s sales were around half of luxury vehicles, adding that it mostly represented import brands but had a national brand store.
â¢ Q3 revenue: $ 2.41 billion, up 30% from the previous year.
â¢ Q3 net income: $ 147 million, up 53% from the previous year.
â¢ Adjusted net income Q3: $ 143.6 million, up 81% from the previous year.
â¢ Q3 sales: Asbury sold 52,524 vehicles, new and used, in the third quarter, up 17% from the previous year. On a comparable store basis, Asbury sold 47,989 new and used vehicles, up 8.4%.
â¢ Recordings: Record third quarter net income; returned; operating margin; and selling, general and administrative expenses as a percentage of gross profit.
â¢ Ranking: Asbury, of Duluth, Ga., Ranks # 6 on Automotive Newslist of the top 150 US-based dealer groups, with retail sales of 95,165 new vehicles in 2020.