Asbury Automotive Group reports developments as a U.S. automotive retail and service company operating automobile dealerships and collision centers across 14 states. Company news commonly covers new- and used-vehicle sales, parts and service, finance and insurance products, quarterly operating results, and digital retail initiatives such as Clicklane and the Tekion dealer management system.
Updates also track portfolio management through dealership acquisitions and divestitures, capital allocation through share repurchase authorizations and leverage metrics, and governance changes including executive and board transitions. Asbury’s releases frequently frame performance around store mix, luxury and import brands, Total Care Auto products, liquidity, and dealership support operations.
Asbury Automotive Group (NYSE: ABG) has announced the pricing of its private placement of senior notes, totaling $125.0 million of additional 4.50% Senior Notes due 2028 and $125.0 million of additional 4.75% Senior Notes due 2030. The offering is set to close on September 16, 2020. Proceeds will be used to repay existing promissory notes linked to a recent acquisition of Park Place Dealerships, reduce revolving credit debt, cover expenses, and for general corporate purposes. The notes will be offered to qualified buyers under Rule 144A and Regulation S, exempt from registration.
Asbury Automotive Group, Inc. (NYSE: ABG) plans to offer up to $250.0 million in additional senior notes, which includes notes due 2028 and 2030, exempt from registration under the Securities Act. The notes aim to repay $150.0 million in promissory notes from recent acquisitions and $50.0 million from a revolving credit facility. The offering targets qualified institutional buyers and non-U.S. persons, aiming to enhance liquidity and optimize the capital structure while addressing prior indebtedness.
Asbury Automotive Group (NYSE: ABG) has successfully acquired Park Place Dealerships, enhancing its annual revenues by approximately $1.7 billion. This strategic acquisition elevates Asbury's revenue from luxury brands to around 49%, reinforcing its presence in the Texas market to 28%. Park Place's luxury dealerships, such as Mercedes-Benz and Lexus, are known for strong margins and resilience during economic downturns. Asbury operates a diverse portfolio of 91 dealerships and 25 collision repair centers, aiming to leverage this acquisition for future growth.
Asbury Automotive Group, Inc. (NYSE: ABG) reported a net income of $49.6 million, or $2.57 per diluted share, for Q2 2020, down from $54.9 million in Q2 2019. Adjusted net income rose to $48.7 million ($2.52 per diluted share), up from $45.9 million a year earlier. The company achieved a record operating margin of 5.7% and a significant reduction in SG&A expenses relative to gross profit. Asbury announced plans to acquire Park Place luxury franchises, expected to add $1.7 billion in revenue and enhance its luxury store portfolio to 49%. Liquidity at quarter end stood at $747 million.
Asbury Automotive Group (NYSE: ABG) announced it will release its second quarter financial results before the market opens on July 28, 2020. The company will host a conference call on the same day at 10:00 a.m. Eastern Time to discuss the results. Investors can access the call via the company’s investor relations website or through a phone line. A replay of the call will be available for seven days afterward.
Asbury Automotive Group (NYSE: ABG) has announced a definitive agreement to acquire Park Place Dealerships for $685 million in goodwill and approximately $50 million for other assets. This strategic acquisition is expected to generate approximately $1.7 billion in annualized revenues and diversify Asbury's luxury market share from 36% to around 49%. The deal is projected to close in Q3 2020 and is expected to provide significant synergies and cash tax savings. Despite initial costs of about $0.20 per share in Q3 2020, the acquisition is anticipated to be accretive to earnings in 2021.