Asbury Automotive Group Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Asbury Automotive Group Inc. has filed its 2023 10-K report detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

ASBURY AUTOMOTIVE GROUP INC (ABG) filed a Annual Report (10-K) with the SEC on February 29, 2024. Asbury Automotive Group, Inc. filed its 2023 Form 10-K on February 29, 2024, reporting on the fiscal year ending December 31, 2023. The filing covers the company's financial performance and operations for the fiscal year 2023. Key financial data and operational details for the period are presented in the report. The report includes information on various segments of the business, such as new vehicles, used vehicles, and parts and services. The company is incorporated in Delaware and headquartered in Duluth, Georgia.

Why It Matters

For investors and stakeholders tracking ASBURY AUTOMOTIVE GROUP INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Asbury Automotive Group's financial health, operational strategies, and market position for the fiscal year 2023, crucial for investors and stakeholders to assess performance and future outlook. The detailed financial statements and risk factors within the report offer insights into the company's revenue streams, profitability, and potential challenges in the automotive retail sector.

Risk Assessment

Risk Level: medium — ASBURY AUTOMOTIVE GROUP INC shows moderate risk based on this filing. The automotive retail sector is subject to cyclical economic conditions and shifts in consumer demand, which can impact sales volumes and profitability, as indicated by the company's performance across new and used vehicle segments.

Analyst Insight

Investors should review the detailed segment performance and risk factors in the 10-K to understand the company's resilience and growth prospects in the evolving automotive market.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-29 — Filing Date (Date the 10-K was filed)
• 148 — Public Document Count (Number of documents in the filing)
• 001-31262 — SEC File Number (Company's SEC file number)

Key Players & Entities

• ASBURY AUTOMOTIVE GROUP INC (company) — Filer name
• ABG (company) — Ticker symbol
• 2024-02-29 (date) — Filing date
• 2023-12-31 (date) — Period of report
• 2023-02-29 (date) — Date as of change
• DE (jurisdiction) — State of incorporation
• Duluth, GA (location) — Business address city and state
• 770-418-8200 (phone) — Business phone number

FAQ

Industry Context

Asbury Automotive Group operates within the automotive retail industry, which is characterized by the sale of new and used vehicles, parts, and service.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to disclose material information about their business, financial condition, and operations.

What Investors Should Do

1. Review the full 10-K filing for detailed financial statements and management's discussion and analysis.
2. Analyze the segment performance data for new vehicles, used vehicles, and parts/services to understand revenue drivers.
3. Assess the identified risk factors to gauge potential impacts on future operations and profitability.

Key Dates

• 2023-12-31: Fiscal Year End — The end date for the reporting period covered by the 10-K.
• 2024-02-29: Filing Date — The date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing analyzed for the fiscal year 2023. Previous filings would provide comparative data.

Key Financial Figures

• $0.01 — ange on which registered Common stock, $0.01 par value per share ABG New York Stock
• $1.50 b — gregate purchase price of approximately $1.50 billion, which includes $256.1 million of
• $256.1 million — oximately $1.50 billion, which includes $256.1 million of new vehicle floor plan financing and
• $103.8 million — of new vehicle floor plan financing and $103.8 million of assets held for sale related to Koon
• $3.48 billion — business for a total purchase price of $3.48 billion. The purchase price was financed throug
• $485.7 million — market for a combined purchase price of $485.7 million. We funded these acquisitions with an a
• $455.1 million — these acquisitions with an aggregate of $455.1 million of cash and $9.6 million of floor plan
• $9.6 million — aggregate of $455.1 million of cash and $9.6 million of floor plan borrowings for the purcha
• $21.0 million — ns included purchase price holdbacks of $21.0 million for potential indemnity claims made by
• $13.5 million — ompany recorded a pre-tax gain totaling $13.5 million. 6 Table of Contents During the ye
• $207.1 million — ompany recorded a pre-tax gain totaling $207.1 million. During the year ended December 31, 20
• $8.0 million — ompany recorded a pre-tax gain totaling $8.0 million. Four Key Components of Our Business

Filing Documents

• abg-20231231.htm (10-K) — 3407KB
• ex21listofsubsidiaries2023.htm (EX-21) — 251KB
• ex231consentofeyllp2023.htm (EX-23.1) — 6KB
• ex311section302ceocertific.htm (EX-31.1) — 10KB
• ex312section302cfocertific.htm (EX-31.2) — 10KB
• ex321section906ceocertific.htm (EX-32.1) — 5KB
• ex322section906cfocertific.htm (EX-32.2) — 5KB
• ex97recoupmentpolicy.htm (EX-97) — 40KB
• abg-20231231_g1.jpg (GRAPHIC) — 18KB
• abg-20231231_g2.jpg (GRAPHIC) — 60KB
• 0001144980-24-000076.txt (&nbsp;) — 17108KB
• abg-20231231.xsd (EX-101.SCH) — 117KB
• abg-20231231_cal.xml (EX-101.CAL) — 166KB
• abg-20231231_def.xml (EX-101.DEF) — 678KB
• abg-20231231_lab.xml (EX-101.LAB) — 1272KB
• abg-20231231_pre.xml (EX-101.PRE) — 1010KB
• abg-20231231_htm.xml (XML) — 2598KB

Business

Business 6 Item 1A.

Risk Factors

Risk Factors 18 Item 1B. Unresolved Staff Comments 30 Item 1C. Cybersecurity 30 Item 2.

Properties

Properties 32 Item 3.

Legal Proceedings

Legal Proceedings 32 Item 4. Mine Safety Disclosures 33 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 34 Item 6. Reserved 36 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 36 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 65 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 66 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 121 Item 9A.

Controls and Procedures

Controls and Procedures 121 Item 9B. Other Information 122 Item 9C. Disclosure Regarding Foreign Jurisdiction that Prevent Inspection 122 PART III Item 10. Directors, Executive Officers, and Corporate Governance 123 Item 11.

Executive Compensation

Executive Compensation 123 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 123 Item 13. Certain Relationships and Related Transactions, and Director Independence 123 Item 14. Principal Accountant Fees and Services 123 PART IV Item 15. Exhibits, Financial Statement Schedules 124 Item 16. Form 10-K Summary 129 Table of Contents PART I. Forward-Looking Information Certain of the discussions and information included or incorporated by reference in this report may constitute "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are statements that are not historical in nature and may include statements relating to our goals, plans and projections regarding industry and general economic trends, our expected financial position, results of operations or market position and our business strategy. Such statements can generally be identified by words such as "may," "target," "could," "would," "will," "should," "believe," "expect," "anticipate," "plan," "intend," "foresee," and other similar words or phrases. Forward-looking statements may also relate to our expectations and assumptions with respect to, among other things: the seasonally adjusted annual rate of new vehicle sales in the United States; general economic conditions and its expected impact on our revenue and expenses; our expected parts and service revenue due to, among other things, improvements in vehicle technology; our ability to limit our exposure to regional economic downturns due to our geographic diversity and brand mix; manufacturers' continued use of incentive programs to drive demand for their product offerings; our capital allocation strategy, including as it relates to acquisitions and divestitures, stock repurchases, dividends and capital expenditures; our revenue growth strategy; the growth of the brands that comprise our portfolio over the long-term; disruptions in the production and supply of

BUSINESS

Item 1. BUSINESS Asbury Automotive Group, Inc., a Delaware corporation organized in 2002, is a Fortune 500 company and one of the largest franchised automotive retailers in the United States. Our mission and vision is to put the guest experience first and follow our "North Star" to be the most guest-centric automotive retailer in the industry. We follow three key principles to guide us: (1) have a fun, supportive and inclusive culture where team members thrive personally while building meaningful bonds with one another; (2) be great brand ambassadors and exceptional stewards of capital for our partners who fuel our mission; and (3) be caring professionals who strive to delight our guests and foster love for the brand. Our strong organizational culture and purposeful mission allow us to continuously deliver best-in-class experiences to our guests. As of December 31, 2023, we owned and operated 208 new vehicle franchises, representing 31 brands of automobiles at 158 dealership locations, 37 collision centers, and Total Care Auto, Powered by Landcar ("TCA" or "TCA Business"), our finance and insurance ("F&I") product provider, within 16 states. Our store operations are conducted by our subsidiaries. We offer an extensive range of automotive products and services fulfilling the entire vehicle ownership lifecycle including new and used vehicles, parts and service, which includes vehicle repair and maintenance services, replacement parts and collision repair services (collectively referred to as "parts and services" or "P&S"), and F&I products, including arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection ("GAP") debt cancellation and prepaid maintenance. We strive for a diversified mix of products, services, brands and geographic locations which allows us to reduce our reliance on any one manufacturer, minimize the impact from changes in customer preference and maintain profitabilit

View Full Filing

View this 10-K filing on SEC EDGAR