Asbury units This fall web earnings file; expects low automobile provide, excessive margins for first half of ’22
Asbury Automotive Group Inc. CEO David Hult, whose firm’s web earnings soared to a fourth-quarter file, expects a seasonally adjusted annual U.S. charge of gross sales of 15.5 million to 16 million autos this 12 months.
“We’re enthusiastic about 2022,” Hult advised analysts on an earnings name on Tuesday, calling the 12 months a chance for Asbury.
Hult mentioned he anticipated shopper demand for autos would outpace provide “for many of the 12 months” and never actually settle till 2023. He mentioned Asbury anticipated decrease stock and better margins within the first half of 2022 and rising car provide and shrinking margins within the last six months.
Asbury had just an eight-day supply of new vehicles at the end the fourth quarter, down from 12 on the finish of September and 40 on the finish of 2020. Its shops held 34 days’ provide of used autos on Dec. 31, up from 28 on Sept. 30 and 31 on the finish of 2020.
However its common same-store gross revenue per new car greater than doubled to $6,335 throughout the quarter, whereas its common gross revenue per used car rose 42 % to $2,623.
Within the fourth quarter, Asbury significantly grew via the mega acquisition of Larry H. Miller Dealerships in December, including 54 new-vehicle dealerships and different belongings. Additionally in December, the retailer added eight dealerships through the acquisition of Stevinson Automotive Group in Colorado. The quarter additionally introduced Arapahoe Hyundai-Genesis in suburban Denver and a Stellantis dealership in Noblesville, Ind, to Asbury.
Asbury additionally mentioned it has doubled its share repurchase authorization to $200 million. Shares of Asbury had been up 7.1 % to $172.62 by simply after 1 p.m. Tuesday.
- This fall income: $2.65 billion, up 19 % from a 12 months earlier.
- This fall web earnings: $140.5 million, up 58 % from a 12 months earlier.
- This fall adjusted web earnings: $162.6 million, up 89 % from a 12 months earlier.
- This fall car gross sales: Asbury bought 53,233 new and used autos, up 6.6 % from a 12 months earlier. On a same-store foundation, Asbury bought 47,110 new and used autos, down 5.2 %.
- Information: Fourth-quarter and full-year web earnings; full-year adjusted earnings earlier than curiosity, taxes, depreciation and amortization; fourth-quarter income and fourth-quarter earnings per share.
- 2021 income: $9.84 billion, up 38 % from a 12 months earlier.
- 2021 web earnings: $532.4 million, up 109 % from a 12 months earlier.
- 2021 adjusted web earnings: $548.5 million, up 120 % from a 12 months earlier.
- 2021 gross sales: Asbury bought 215,116 new and used autos, up 22 %. On a same-store foundation, Asbury bought 190,993 new and used autos, up 11.4 %.
- Rating: Asbury, of Duluth, Ga., ranks No. 6 on Automotive Information most up-to-date checklist of the highest 150 dealership teams based mostly within the U.S. with new-vehicle gross sales of 95,165 in 2020. Asbury has estimated that incorporating Larry H. Miller Dealerships, which had ranked eighth on that checklist, and its different 2021 acquisitions would make it the fourth-largest new-vehicle retailer when measured by professional forma annualized income.