Asbury Automotive (ABG) 15 Feb 222021 Q4 Earnings call transcript

Good day and welcome to the Asbury Automotive Group Q4 2021 Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Ms. Karen Reid. Please go ahead, ma'am.

morning, good and operator everyone. Thanks,

earnings President call of David Financial As morning Clara, available Vice Participating and for be Automotive you Hult, be of full later are will recorded our release have. our and XXXX will Senior today year asburyauto.com. will our call results earlier Executive posted and being for Officer. noted, Group's we Asbury's and up replay this quarter open that conclusion Chief quarter may and Dan Asbury Officer; is today's at Operations; for Vice available to later and President Welcome on with Chief press website the issued our is me and any this Welch, remarks, fourth I The call. questions questions the Michael was fourth Senior detailing President At follow-up afternoon. our

the we begin, is must that contain remind likely you Before discussion we statements. call to today forward-looking during the

Forward-looking are may historical of uncertainties. than are and forecasts subject in those expectations, which current which statements financial projections, which to include nature significant other are statements each

and any statements, regarding to filed with time, differ that expressly results disclaim risks For materially earnings Form subsequently on responsibility of XX-K issued our our our XX-Q the any including release ended update forward-looking see may actual XXXX, from quarterly year cause certain information SEC December the from to statements. earlier these please today. filings to time the Form We for reports

be financial defined discussed call. this rules non-GAAP SEC as may measures certain addition, In on under

the our directly non-GAAP provide we website. comparable financial rules, GAAP SEC measures of reconciliations applicable on by any required measures such most to As

is highlighting David presentation to pleasure posted on CEO, my our over year an our to Hult. It results. updated asburyauto.com David? We have quarter hand now call and also the full fourth website, our investor

closed acquisitions We with to quarter, team $X.X Chrysler Landcar, In acquisitions joint on the and earnings annualized was excited Care Hyundai-Genesis together new forward the approximately Thank Asbury by to and in of deploying Arapahoe Welcome are billion culture. capabilities our quarter H. record for Asbury's Dodge, fourth Automotive Stevinson Miller fourth year you, Karen the These the represent in Kahlo to of high-growth right have aligned XXXX look and Larry and and part Jeep good our markets we call. members Total revenue. the growing brands family. an all-time powered I'm and Asbury. as representing Group, our morning, everyone. Auto, transformative

by a new We our all new using productivity margin, delivered In and acquisitions. stores. our used business, For we we maintaining increasing the EPS in of employee by adjusted service flow online margin markets year, and challenging growing adjusted operating vehicle XXX%. environment, grew vehicle delivered for levels sales cash succeeded at EBITDA parts the Asbury and record profitability our to improved Clicklane tool, transactional full by all strong and the legacy improving in stores X.X%. our targeted our while high-growth great XX% our We vehicle we completed adding and rollout adjusted an

multiple to in Our continue earnings any allow and us business strong adapt lines deliver business environment. to

to legacy also our cash further to stores out our deploy strong and our flow, record us Care into remains grow sheet solid. will Auto Total into our recent allowing our balance We Due acquisitions, and Clicklane performance roll earnings.

million flow operating an for Our XXXX. of increase million, over adjusted $XXX was cash XXXX $XXX

this at ended quarter X.Xx. leverage Our net

million. that $XXX morning, our in an of also repurchase share increase $XXX earnings cash by release we use manage to approved continue acquisitions. announced will our maximize and leverage our flow share our buybacks and authorization We to shareholder Directors through our this Board free return has million to In

you give on to our five like a plan. I'd year quick update Now,

Our in levels, to million levels, three continues growth. revenue over deliver same-store impressive incremental our an $XXX quarters metrics, for grew last Clicklane revenue contributed to generating Clicklane vehicle almost lower XX% new inventory additional same-store X% expectations. exceeding in year, adjusted XXXX. Despite

a As had previously very successful noted, year we regarding acquisitions.

maintain in we strategy. the our update now Dan we our to results, QX operating the year Dan? XXXX these full earnings I five our call. our hand With of results our discuss to over confidence call in upon execution during performance. Based XXXX, will growth will plan

morning, good Thank everyone. you, David and

In I a quarter this an deliver quarter of strong expansion XXX the the experience. record XX% I XX.X%, of for all would Before thank reported an to teammates results, our earnings exceptional to enabling points performance, their delivering up and field like to year. we work, release record, morning, and over impressive commitment versus us share operating in an EPS our delivered hard of prior fourth all-time $X.XX, last fourth margin guest basis an the our year. dedication gross We adjusted

adjusted to in continue as gross point profit teams XXX XX.X%, year. SG&A prior of resulting per employee, percentage productivity maximize versus of Our basis a a improvement

up improved future. margins the for quarter from the our XX% profit adjusted total was X% in our we'll continue to Our optimize gross portfolio in year-over-year in up to and operating quarter was and revenue XXXX XXXX total for the X.X% XX%. We

market with quarter same-store and inventory on to on focused Starting I improving grosses maximize compared XXXX, new Now, with profit. Based continue we stated our turn otherwise. to of our performance to fourth to current conditions, being vehicles. the be opportunistic unless will

At supply prior year. significantly was our December, and at X vehicle $XXX $X,XXX from our day was XX year segment from vehicle Our from million prior per days All down period. new the XXX% days, gross new inventory or was prior of total were year end period. average $X,XXX, profit the the the up margins up

remain as trending We up end expect year. into the the of days XXXX, towards supply to we moderately low the progress

used vehicles. Turning to

XX%, average Our vehicle used was increased per an gross $X,XXX. while retail volume profit representing margin X.X%, gross of

retail our performance, of result profit XX%. gross our was up a As

a ended the vehicle total $XXX which prior Our from supply, three up year. days represents the million used inventory at XX-day quarter

fourth Our an retailed to delivered increase growth used for quarter, vehicle $X,XXX. consistent yield Shifting from vehicle parts an ratio increased per now $XXX record warranty and $X,XXX quarter. the was vehicle service quarter. our to XXX%. and strong, service; revenue to to In year prior per of in parts to increased our of the in and F&I our And The dropped quarter per all-time XX%. the front-end new F&I; the sustainable revenue $X,XXX XX%

revenue over continues the healthy XX% appointments, XXX,XXX year pay a posting increase prior We achieved and XX% service recovery, customer a Our all-time quarter. record online growth. over it's an

of financing the retention, under were Asbury's higher conversion used. through of of front-end new XX% score departments. to consistent higher include front-end and vehicles XX% require returns XX-mile Clicklane higher which of share while yield previous thus transactions average with Clicklane of customers of in of QX, margins to Some yield radius that trade-ins customer of continues allowing rates, reconditioned those for dealership at at $X,XXX. customer with experience, to And the customers like transaction deliveries for front-end XX% XX% our and vehicles consumers benefits time network. $X,XXX. Clicklane we stores. minutes higher with to stores, quarter, a in of service seeking our three our our instant appointments in off-line score of belt, retail this to with sales for XX% of a finance an would higher received us our some applied XX% all consumers are new and had opportunity XX of than XX% and credit retain deals Average minutes were yield total were were trades the With XX% Average increasing of online XX% to metrics. our of over our is of stores be to quarters service additional F&I quarter parts performance $X,XXX some them deals. approval, We such Clicklane variable new legacy credit full X,XXX that cash enhancement X and our Total the within approved sold shareholders. assistance. financing.

greater than Internet at rates converting are traditional customers Clicklane leads. expected, As

our be Clicklane. about assess the remain continued few We to Clicklane. of approximately the were of after Until somewhat of inventory sales XX% levels launching first able excited months vehicles. growth normalized, potential full fully not new will quite During Clicklane, our we

Lastly, a like warm extend to members. team I welcome would to our new

that with North All align most of our organizations tremendous properly of being the built guest-centric have you Star automotive retailer.

our future hand Michael to will Our forward meeting Michael? over to bright performance. and to financial look all is I I discuss the you. of call now

another Dan. To I would like our our marked other provide Thank which highlights our investors, company. and record you, financial participants call, quarter for on to morning. some good yet analysts

and acquisition-related fourth an year, XX% diluted today expenses Overall, dealership operating $X.XX the the adjusted for of was gross for financial on fourth expenses our million press million EPS the X.X%, For of same points quarter our quarter, our actions on for release our $XXX control divestiture for profit quarter quarter all-time on please additional margin fourth was record. Adjusted and $X.X performance manage income or the basis Net compared of and XX% income the supplement a a $X.XX. see and adjusted per $XXX XXXX year XXXX and of of investor period our above to share. $X.XX gain an details million XXX diluted last in of website. to adjusted per our or of share. last increase financing fourth resulted expenses in adjusted to net quarter increased presentation acquisition income to increased Net for financial

H. simultaneously outstanding Miller as would EPS was impacted part by acquisition fourth net by income the our financing closed had fewer closing. XXXX impacted and and the In interest prior have the EPS with to financing to completed issued expense the the a mentioned addition negatively shares above, been the fourth quarter positively that result the for was acquisition of of our Larry quarter lower interest adjustments $X.XX adjusted If as shares. acquisition, additional

an XXX Now income full EPS Adjusted X.X%, increased XXXX million for record. adjusted basis to of to increase net an margin all-time the Adjusted XXXX. to operating $XX.XX. at $XXX and XXX% points was results XXX% year increased compared

rate was XXXX. to XXXX tax in XX.X% effective Our for compared XX.X%

syndicated equity This credit approximately finance our and billion, completed debt a mortgage upsized $X.X in of revenue. million billion approximately to annualized quarter, $X.X under acquired we offerings borrowed In acquisitions, facility. the and totaling order facility $XXX syndicated we

In $XXX the approximately capital $XX addition, generated of flow cash million million expenditures the quarter. operating in of we adjusted spent year. for We

liquidity, healthy availability sheet leverage of approximately ratio with and cash remains Care Auto, stood as floorplan and credit net facility. of excluding balance the $XXX at end both leverage of accounts line net we the on at ended quarter our used targeted our million X.Xx, comprised Also of revolving the offset cash, our Xx. Our Total quarter, to below

our Board to our to approved $XXX that $XXX announced As million David we has an stated authorization by earlier, today, million. share repurchase increase

transactions. For for $XXX we XXXX, be lease our In of the to also potential hard welcome approximately financing planning XX% million. I and work purchases to our continue consider estate to I long-term amount are rate real teams of This approximately closing, to and a to and thank opportunities team like success. business would like across members. excludes our we to would who that buyout new ensure CapEx XX% tax current

turn call expectations. our back and to David? XXXX over to I'll Now, discuss the objectives David

Thanks, Michael.

transactional rolling our Turning with few of our all development into Auto innovation Total team continue initiative out to and our capital value Care across to insurance Clicklane, expand our training coast allocation to teammates PVR, integrate are provider, acquisitions, us year. platform entire the product fully this new and transition growth will of execute to members, objectives return, F&I recent and XXXX; for which our our superior and our this I the key dealerships smooth to F&I regarding the best-in-class make shareholder would coast like execute expectations a our to and maximize growth margins of tool operating continue Asbury SG&A. our of our also continue company-wide of allow maintain comments

the gradual exceed supply inventory XXXX. and of a expect see recovery demand about most will as for opportunities We of continue improves. production in We excited in anticipate OEM 'XX do year. the for are to that retail automotive levels good second We half we

business for million As XX.X a with to million consistent and XXXX. margins vehicle XX are planning our of result, SAAR a units we

retail. the We adapt shareholders, for should in to improved benefit brands evolve. look profit gross nimble management conditions SG&A be deliver productivity. most a strong remain to can will and percentage our an results from outstanding where experience as to We expense continuing automotive of continue guest-centric OEMs their active and to vigilant while forward our partners employee providing to and with our thrive great team offer members environment steward as

address at to my of like Asbury. all teammates I'd Finally,

and care not serving add to engaged you. our who, being ability quality happened Our like could guests highly about without in stores, have communities our us,

core the a part People have all align make vision. appreciate the to given everything. do you thoughtfully are all to are I am ability I us and difference and want a people our our you business. in Thank to be This you behind business concludes of any where creating us you You of an place grow our remarks. making this to organization you and for team. work thankful because better prepared environment

turn over take and to will call We the your operator now Operator? the questions.

ahead. line first We'll question the from Stephens. Nelson our [Operator Instructions] Rick Please take of go with

open. line is Your

stores, acquired lower than a [indiscernible] a pay to quarter. and higher Asbury. core like at and yield operate the about lot the another great SG&A Thanks front-end I'd ask

at store. for lower looked I consolidated example, the the SG&A, was slightly As same than

David. start Michael jump Rick, and can certainly I'll is this in.

when we days numbers made and the announced quarter, on the the accretive probably deals, H. you XX or quarter holidays, XX had I in Larry we to It's the in it days. there then was with As was or early XX XX fourth add comment maybe the Miller in think Asbury.

are So those accretive what accurate. as Asbury stated and before, recognized acquisitions, as you acknowledge in to

stores are across opportunity there the rolling a improve the for to chain? bigger of to or performance And Asbury acquired opportunities CA, example, is

core used parts certainly rate. and as a our and of Total Yes, stores, plenty an of at numbers grow steady for our our Asbury the best continues performance. grow into Care at acquisitions. The operation we will to well, couple certainly and A service to And the room continue car our with great rollout in a world have We stores do new the to certainly that F&I while boost has it's improvement question. opportunity of things.

us add, for they that will before. that And thing is didn't have is just another some other to Rick, putting Clicklane opportunity give One acquisitions. those us in technology

is that perspective. to help So technology an them for opportunity just us from a

your an near the do Or do what term? gauge over temporarily to slow integrate is here more like things you've appetite Also appetite Do to got? Okay. to something you acquisitions. to there

might Rick, David. Michael jump this is I'll in. start and

as aligned finding us. Our to never that goal It continue to really are groups have grow is or to allow to was opportunistic We the largest been. the grow fastest. be being really in about with them they operate

price we're period to get it's know allocators. now integrate to extremely So We capital great longer at cheap low other feel a and and and want integration be over. each much an everything is like to trading multiple extremely our right stock we

stock shareholders, and of our our if back. up feel sense, But for So year our upon the some our we act or our will And to be like it's for could certainly there we'll tough out. we company if it. stock potential some back how If acquisitions say buying stock. play comes accretive will a something certainly is it devalued, being price acquire that's makes to

stable expectation front some the maybe there end we'd GPUs talk in would for to advance your and the given the see of in in XXXX. What end for the And back about pressure -- expectations and year Great. inventories things normalize? then

pandemic lower. 'XX at in right we'll see as The think 'XX. the don't margins inventory came of we reversed have the But to then margins here been know were reverse then a we that of half happen it. I up. margins fourth first look Sure. in in and 'XX and 'XX, of saw itself wrong time down that's you last and but out. we a two will Inventory that really and 'XX. certainly levels we the the going second here little see about went the be the the elevated year 'XX. that of first might as second the the way all between We it today, quarters, like of half half news see little And sit were higher has to quarter. bit today, shortage good we everyone everything And Really the we trying else. when the like figure bit first is inventory difficult what's to gauge way in the sit But the chip look year, half the

Great. good color Thanks and for luck. the

you. Thank

line We'll with take Murphy our next Bank ahead. question from John of of the Please America. go

is line Your open.

Good morning, is to normalize? is inventory is and to means go do are timing. going you everybody. is good Maybe what just way do is a follow-up Maybe there. for logjam mean thing I that used here, call think mean, [ph] you it things when I to last be? going But to on tough, very grosses this where where know, between it I a to? morning. second follow-up to on the right, is back question somewhere And tough used be? where level just -- half the calling broken it to year do a the because it the think the all the you it's obviously, -- -- back think here what it Or Rick's automakers

Very tough gain grow to know their a to and business. share never It's to is predict. do someone and you going and try what market world competitive

until settling car right businesses even the on between else, But rental to the everything learned early and mean I to they're now a inventory see with into benefit can lower be just when too able supply that I 'XX. effective think demand compared the that tell. to everyone I concept a the days fleet don't stabilize sometime so demand XX? supply and days from think a up we'll me, everyone's we at seems the or can that. high XX, and XX to companies from Does XX it's catching start

things a the with before going to agree It's be you Yes. I while normalize. there. generally

dollars SG&A percent you bit a pretty kind tied towards gross yet well have is over the this of it grosses front, the On of more way units more about of going -- and to don't time. there the the maybe little Is a that numerator bit for keep forward? gross there grosses? more Is to is you a static it in absolute as Or the to impressive. link as stays so little a more think way we to consistently the variability than denominator

prior employee John. you, your one, it's productivity Yes. tough keeps on that generally and to tell per cost would I down. would our -- focused were pandemic, a we I

go margins to there be some if levels However, certainly with technology evolve also leakage start to think as lot, to that a opportunity backwards new ceiling hit the per gives few an you SG&A. production will into next continues years, I over employee.

as stable as And going 'XX, back to this in employee see we pretty environment. So to also 'XX. who say, at per that productive more point, we're much it start a again, But it, be call and if come knows. 'XX it's think we margins

the So extremely behavior their we we staff core down ours. and just a we spend think of the that expenses run we how lean operating it's do a mean efficiently, and or think it's keeping and marketing dollars a our stores tremendous whether and job discipline stores. We of

not but you with some mentioned, what's of of stuff stores underwriter -- want it your an And cases Care just be just because kind spreading own lastly, it captives. Miller? compete that's touchy like in Rick also going there bit but a this Total becoming looking because incremental in And some then at the it this us really, on are just maybe seems shedding and your you might F&I remind Auto doing little peers opportunity to is is and Okay. light Larry on of don't across as more and or on exactly an even could kind

Auto suppliers. Total of third mean a some the parties I there. Yes. full is They product F&I of take Care out place the

that parties. And to go the so we the profitability basically retain all used to third

throughout parts a the of equation, and hold the we better and of side to the control the side. is customer F&I The service we have the sides and allows have sale customer process because experience. other benefit us whole It the we provide and really kind both

to us tremendous be out is for we'll to some is upside stores. transparency we're have this and roll really able to dealership kind a operations, you to sure there going So the and see just the we have that impact. next in can in present thing you quarter operations guys you consolidated way to TCA show make One for then guys just of our to we as that do operations

see full that have coming when operations you'll of quarter And TCA. we with quarter so, next a

the be that operations. we'll able see to of of So guys benefits to kind you hopefully transparency the give

woven organization And quick over TCA business on that. of and then is rated. of XX fabric in one stores. and and an that's DNA is insurance Best It's A.M. comment company the top extremely years the their been Miller into

to penetrations For that benefit, legacy Asbury they have product stores. in compared sales increased the

benefit So into in we that confident as future improved well as rolled Asbury, will we feel gets the sales. see product

So offshore TCA? on is what's kind at going self-insurance. that that there function essentially Is of

vehicle It's the the products side. service like things contracts, on that onshore. the like It's maintenance underwriter F&I -- F&I just just contracts, a it's again, behind

Thank Okay, very all you right. much.

you, John. Thank

We'll ahead. of next the Gupta Please Rajat go from our question JPMorgan. take with line

line Your open. now is

questions. to quarter preview the print Clearly, Overall, much long-term expect you to you out Hi, higher during I than first the mind is to acquisitions cash put what plan. in of with cumulative when us ahead -- are thanks ahead had going provide a the taking generation targets. of quick regard plan, be of was you just what well could those hoping for maybe

talked vertical of adjacencies. horizons about You've a number or

have could captive the any already finance that be cash. on use of that what extra You Salty, is cards? on TCA color mix Maybe and

the of going And a allocation You could a bigger I forward? the obviously mix follow-up. And have have consistent that and be capital portion more buyback.

just allocation So hit the portion. on capital I'll

pretty at and the we hard the at to price future. say in where share And share the at four course, for of I best and into share acquisitions the it's going look think but years buybacks that always We'll shareholder. three, the to year is to going where acquisitions look model, return attractive. too share into share of are with buybacks have kind built these price the the price, terms -- we trade of prices, five

it's So acquisitions what's same looked the terms in capital price we've at. what's versus the share at deployment always of

there, those you buckets. said, So more to no just changes more both cash like -- into flow put

year the plan key the the is on than update, did five there we anticipated we acquisitions On originally more upfront.

And larger give will, us same-store of Clicklane. of so a that base course, and off do

don't I updated larger looking So in terms of of a just bunch down. the path It's see go we're to the changes get the numbers with will base.

the early lot And it company, a sense say or your at I year. comment we're of stages if investigating It's clearly point. tell regarding looking that that's more early generate for see cash the this not. this going We're would in finance too and at really us to to something and makes

passed acquisitions seen We debt are some are a And because there. and lot or the on whether out our gives what down and that we for year market disciplined will at stores us We've acquisitions depending just our buybacks, and look have them opportunities it upon what of that company. it's threshold we've finding mortgages available. pay acquisitions accretive to already this really and our fit doesn't through

from Please next Moore ahead. question We'll the line go with take Stephanie of our Truist.

Your line is now open.

morning. good Hi,

morning. Good

and expectations just platform. for the advertising and I what wanted are marketing in for increasing to on awareness and Clicklane XXXX your touch

and is in tool. bit have and to tool we and of lack We have. quickly the didn't fully we're thinking of it all we into consumer that simply benefit it's Yes. This is spend marketing the a chunk tools started new are transactional to We inventory is The of Clicklane because downside was that money canceled experience. stores. into sense a website. I The lead tell going look than takes of that make it integrating at it David, if 'XX with that overlaying Stephanie. a best a we off the longer generator a we believe that market that the still constantly there. the would It out you, little

until So now to software tell the The rest. us it's because levels integrate time I pick little there. won't going the marketing a take right are you to dollars up on ruin to the you inventory website don't page we see go our stores and in salespeople the want car had And on could And vehicle the stores the professional display the the have the seasoned really a the in that consumer, the the one of and some for of Clicklane would into ruin a want experience which for stores, see you and that of have the shrinking can in time, availability is, they're that reason someone ahead don't. some isn't purchase a available. inventory We while inventory really is experience come availability is preselling product. month don't to Clicklane. pipeline the

We'll prudent catch So now it's it. inventory money not for the just market right to to wait spend to up.

goals this lot of exciting just selling EVs, -- talk these kind conversations models could of new you Understood. particularly of a exploring how pretty a models. are think about models, Maybe And a as then meet the kind new of aggressive you're in new the bit the and majority shifting expansion well the EV the gears, yourself as I we're dealers that all aware OEMs little general, you're pretty preparing having ahead? with of methods, And around new about lot to OEMs direct-to-consumer? those of years kind

EV. getting product about consumer has and ago, facilities to was now ago the concern We stations to four new come as there install our about on A and speed adoption starting years to few some so started at on charging out. up training almost years

of and us far is and some these the some the coming We superior far some electric the of that are the start-ups their from coming as products. You of we've that products. believe out can EVs about are fit where now opportunity more some cars and wave to to OEMs. being really quality seen touched finish than accepting of feel sell consumers and legacy as of the the we're excited The

the best On So we're people track we goes, quarterly from help complex and as the is hybrid combustible that and they And repair technology can electric. issues out. still service our when chain on per expect that order that dollars we're consumer. of legacy belief franchise the that's adapting the the need electric fully they arise. order, cars spent the the and we're you'd healthy model OEMs These highest engine count to coming same. repair dollar now, far and go. per a are And consistently for Right the still cars. on the as departments, in with basis, locally We're it's then spent supply ready and to the dealer fully them new

consumer over as having well. that's going really improve a That lead will not tool is companies. some negates these time a back selling with as direct car from sell generator inventory that differentiator like the Clicklane, need tool, the product. complete get to is We becomes to So on available you. to one have a ground the And another, compete car transactional the have companies to that they electric by the and think of to people

level So consumers that offer we the we high them of a franchise long care We sense. service makes we our of take lot a as of like our position. as and model believe

Thank so Great. you That's all much. very helpful.

[ph]. Absolutely

with question line Please Jefferies. next from ahead. go our take Jordan Bret We'll of the

open. now is line Your

score selling you're what you the it higher is this Is new the higher. think mix, different as down? used as valuations Or sort year we think say as it average? up, follow-through used And is Hey, inverse than you guys. used XX% that on selling about then that? Is profile value should be would sort used, in FICO good morning the comes You is soften comes an before just of a progresses? a can car younger, on car? Clicklane the of do How vehicle supply used

Dan. is This

correction. the somewhat going the address values. don't values it an but is a I'll not first growing first It's car is that hard remain be that to inventory they correction belief it inventory levels the meaning starting December, right as is now. in we -- will were adjusted is be believe the going So levels, regarding where stabilize, when for tell correction. immediate to used the question -- to our gradual there until until see we I cars one the It's that November, valuation And the new And a have exponentially before. don't they're

we DSI but So -- new be -- is dependent believe that new DSI. to car going the do on

under, as vehicle we're Clicklane cost question cost sale On the certified of Clicklane $X,XXX the call selling tool. call sales, $XX,XXX, second and as sales, high selling low preowned of our luxury we're far it, a in

much So experience no a and what different transaction. our just better than in stores, much selling a faster we're

worried about are on. I buyback, for but on the have We and comfort. of gives purchase the a think clearly about value what's time. span that it's which certainly they level is them some XX-minute convenience probably the the questions But higher scores And get X-day would a of higher full simple their credit I they driving payments move a scores. done which that end the reason, ability in that consumers and no add day, asked when realize at higher it's they can It's financing credit tool Bret. the have that Clicklane, aren't this down are they transactional

And you $X,XXX Okay. well built GPU inventory? just that as were Clicklane out plus called on Clicklane so Was you've used the well-sourced you cars then really that you've on taken some a trade selling used. via the

Yes.

the consumer reconditioned that car and we so on purchased So vehicle took those it. that was Clicklane new a a traded and it who trade -- sold

Okay, you. Thank great.

from Please Morningstar. with question of the ahead. next David our take Whiston go line We'll

open. is line Your

Good morning. Thanks.

On the asking have so noticed compared any XXXX? this far seller M&A difference front, you to year, prices in

others and the depending upon David. great would of really It's in markets growing where are bringing lower not a still premium point location desirable that They're and in bringing stores, at question, at a this some I markets weaker big sure. time. highly in those what for it's and But brands. at say the I call as it's they're multiples rate would some brand

Do look though, now, you the well, having margins to lot back? -- able selling into be and being see I assume unreasonable at that sellers a perpetuity of thinking push to you're should

going a have buyer, when their seller selling wants take then everyone's the anyone think to to I and assume position you that. is anything certainly and

that possibly testing what waters we the pretty what they They're that and a of time some we just don't spend could say only I aren't think looking really no lot We valuations at the markets sense also lot on deals. deals for have the a get. to spend are maybe fast time of think We fully you make people in sellers. and see us.

we've XX every months. to has I XX activity the So it last the really it's tell hard been days you has great as say. the can seen in bit as last been for

a say bad could there Lehman the like for to? that if I just crisis, curious, liquidity pandemic needed is collapsing, really on And or you ever Okay. any when cash access cash, if the way you restricted was TCA the general is there

cash? TCA On

Yes.

for cash cash, and investments there TCA Asbury purposes earns corporate do from cash TCA of pull cash to that insurance claims. it general for over be the pulled excess is used the The to have to cover purposes gets pulled for from future most as that We out.

kind of out So business. of month, the we're excess every pulling the cash

just that investments So what's needed left there future claims. for are is

commitment on finally, Was And special fee. the in the Okay. GAAP interest in quarter booked item bridge for the expense? that

may was I that have misspoke I And -- I when read think Yes. it.

I $XX.X It's if that think one. said $XXX million. misspoke million I I

So for expense yes, GAAP. is an interest that

Okay. Thank you.

David. you, Thank

[Operator Instructions] JPMorgan. our go from Gupta Please of Rajat the with take We'll line ahead. question next

now line Your open. is

the improve I some company of accidentally Thanks the turnaround? after performance in queue. of you great. also question I vehicle just follow-up the that forward? And was of that same-store past. that part is overall mute the previous getting Clicklane used clearly, Things it going major like me on there. a in on started have anything quarters sustainability attribute Hi, how my execution had specific you driving question. for business. Is on or do the just in would terms to not? nice the before What view mixed to a back

that. start then can Dan finish for I'll and

was point Your obvious. numbers. We comp had lower

and So my valuation years the that head now mean for an right me, in seen because has certainly tell we're this a more XX again is that, like our numbers stores. pricing by But been I I'll haven't I conservative aggressive of you, what automotive There helped. group around before. get than at focus hard to

try disciplined if supply a the cars? days or XX, XX put we But swings us days have that days a supply in XX Sure. market XX and XX, So Could of XX at we used supply. stay position. a to tougher would

that discipline like day having supply. a really we of lower So

in our continue accretive the acquisitions that coming or I will are it on. think that to earlier, have they're company. we I made more the comment

big ratios legacy stores. opportunity than they One of that core have, the used to are the lower they're Asbury areas of new

It's an change behavior going on those work take that But some there's potential preowned. there. to sales and opportunity to to time stores car doesn't with used them So the of overnight. grow get with out

of right where month-to-month car cars to store the them the entire a at Raj, turns the main vision focus highest we have perspective shows I with executing. and they the and maximize would margin. to having store that by what importantly, historical fastest team at pace. at used level, put our the operators right behind the we a basis us for that. add been an but car and to And the is And I mean a that getting it's the where turn the really -- And more a the on anything about it is -- tools from faster belong it and

thank but room continue what So to cannot the done. enough have I improving. got very of them pleased with plenty operators we've

color. Got Good for it, great. Thanks luck. the

Thank you.

a look first in our day. April. our quarter great results discussing concludes We This forward to appreciate today. discussion your Have participation and