Asbury Automotive Group Inc. profit doubled in fourth quarter as Duluth, Georgia public retailer closed first full-year profit, boosted by December 2021 acquisition of Larry H. Miller Dealerships That’s it.
Fourth-quarter net income jumped to $353.2 million from $140.5 million a year ago, Asbury said Thursday. Earnings he increased 40% to $3.71 billion. However, same-store sales increased only 1.4% in the fourth quarter, and same-store gross profit declined 1.9%.
Asbury said it spent $2.7 million on “significant acquisitions that didn’t materialize” in the fourth quarter. The details were not immediately clear.
In a statement, Asbury CEO David Hult said he was pleased with the company’s progress on its distributor acquisitions and growth initiatives such as the Clicklane digital retail platform.
“We are confident that we are well positioned to achieve our strategic goals for 2023,” Hart said in a statement.
Clicklane sold 8,471 units in the fourth quarter, up 67% year-on-year.
Asbury purchased 61 Larry H. Miller franchises and pre-owned specialty stores and financial and insurance product provider Total Care Auto in a $3.2 billion deal in December 2021. At the time, Larry H. Miller ranked him eighth in the rankings. car news 61,097 new vehicles sold in 2020 on the list of the top 150 US-based dealer groups. Asbury was on the same list where he was No. 6, but on the latest list he moved to No. 5. car news New car sales in 2021 are 109,910 units.
Asbury sold nine North Carolina dealerships in the fourth quarter for annual sales of approximately $590 million and sold to Hudson Automotive Group of Charleston, South Carolina. Asbury said he received $322 million in proceeds from the transaction, though it’s unclear if the amount represents the full sale price.
For the full year, Asbury reported a significant increase in net profit. Sales on an existing store basis increased significantly, albeit with a slight decrease.
Asbury shares rose 3.2% to $239.15 at noon on Thursday.
- Fourth Quarter Revenue: $3.71 billion, up 40% year over year
- Fourth Quarter Net Income: $353.2 million, an increase of 151%
- Fourth quarter adjusted net income: $201.9 million, an increase of 24%
- Q4 vehicle sales: 36,811 new vehicles, up 41%. 34,346 used cars, up 27%
- Earnings for 2022: $15.43 billion, up 57%
- 2022 Net Income: $997.3 million, an increase of 87%
- 2022 adjusted net income: $842 million, an increase of 54%
- Vehicle sales in 2022: 151,179 new vehicles, an increase of 38%. 151,464 used cars, up 44%
- Records for 2022: Adjusted earnings before net income, interest, taxes, depreciation and amortization