UPDATED: 7/22/14 10:55 am ET -- adds details
Improving car sales and a double-digit revenue jump helped drive second-quarter profits up 33 percent at Asbury Automotive Group Inc., as all parts of its business showed gains, the auto retailer said today.
Asbury, the seventh-largest dealership group in the United States, posted second-quarter net income of $35.9 million, as revenues rose 12 percent to $1.5 billion.
“We continue to be thrilled with the success of our employees who produced record earnings and operating margins for yet another quarter,” Asbury CEO Craig Monaghan said in a statement.
Asbury COO Michael Kearney noted that industry sales continued to gain momentum in the second quarter and that Asbury experienced gross profit growth across all segments of its business.
Unit sales rise 12 percent
Total gross profit rose 12 percent to $247.9 million. On an adjusted basis, net income from continuing operations rose 19 percent to $36.2 million. The 33 percent net gain was bolstered by a year-earlier effective $3.2 million after-tax gain from a real estate transaction.
Asbury sold 25,037 new vehicles during the quarter, up 12 percent. On a same-store basis, new-vehicle sales rose 7 percent. By contrast, total U.S. new light-vehicle sales rose 7 percent during the second quarter. Asbury’s new-vehicle retail revenue rose 12 percent, while gross profit in that category rose 15 percent.
Asbury retailed 18,840 used vehicles during the quarter, up 6 percent. On a same-store basis, used-vehicle retail sales rose 3 percent. Used-vehicle retail revenue rose 12 percent, while used-vehicle retail gross profit rose 7 percent.
Finance and insurance revenue rose 11 percent overall, coming in at $1,308 per vehicle on a same-store basis.
Parts-and-service revenue rose 9 percent, while gross profit in that category rose 11 percent.
In other comments, Asbury said that it acquired a Hyundai franchise in Deland, Fla., with about $40 million in annual revenue.
Asbury also said it opened its first standalone used-vehicle store, called Q auto, in Brandon, Fla., during the quarter.