Asbury Automotive Group Inc. will spend just more than $100 million in capital expenditures, primarily for facility projects, for 2011 through 2013.
Spending will average about $35 million a year during that period, Asbury CEO Craig Monaghan told Automotive News. The annual number likely will vary from year to year for the retailer, the sixth-largest dealership group in the country.
"We're rebuilding a number of Toyota stores. We just built a very large Mercedes store; we're doing upgrades in probably five, six, seven other stores," Monaghan said. "I would say that it's more of a normal pace for us."
Asbury spent $30.1 million in 2010 and $8.3 million in 2009 as projects slowed during the recession.
Before that, the company went through a five-year period of relatively heavy spending to update its facilities, Monaghan said. Asbury's annual capital expenditures ranged from $45.3 million to $78.1 million between 2003 and 2008.
Asbury's facilities now are generally in good shape, Monaghan said, and the $35 million annual spend is enough to keep them there.
Through the third quarter of 2011, Asbury's capital spending was $16 million. The company is on track to spend $28 million this year, down from its previously budgeted $35 million, CFO Scott Krenz said. Some of the spending budgeted for this year will now occur in 2012, he said.
"It's just timing," Krenz said. "Some of the projects have moved a little."