Asbury Reports Record Second Quarter
The dealer group reported a 21% increase from last year’s adjusted income from continuing operations, as well as a 12% increase in total gross profit.
DULUTH, Ga. — In a quarterly earnings conference call last week, Asbury Automotive posted income from continuing operations of $36.2 million, a 21% increase from a year ago.
Total revenues for the dealer group increased 12% to $1.5 billion, while total gross profit for the quarter was up $25.6 million, or 12%.
“Seventy percent of our incremental gross profit was from used vehicles, finance and insurance and parts and service,” said Keith Style, SVP and CFO of Asbury.
The dealer group’s F&I strategy remains unchanged, and the lending environment is favorable, officials said. F&I revenue for the quarter grew 6% compared to the year-ago period, while F&I profit per vehicle retail was flat from a year ago at $1,308.
“Disciplined execution of F&I sales processes and training creates solid, sustainable growth in results,” said Michael Kearney, EVP and COO of Asbury.
Asbury’s second quarter total front-end gross profit yield increased $68 over the same quarter last year to $3,282. That includes new- and used-vehicle gross profit per vehicle sold and F&I profit per vehicle sold.
“As I stated last quarter, I believe we can maintain new-vehicle gross profit per unit retail in a range of about $2,000 to $2,100,” Kearney added.
In the second quarter, the group’s parts and service revenues grew 7% and gross profit grew 9% compared to the second quarter of 2013. Parts and service gross margin for the quarter was 62%, up 100 basis points compared to the prior year. The group plans to continue to grow this segment through ongoing customer retention programs using quick service processes at a number of its stores.
“This year-over-year gross profit improvement continues to be augmented by 15% increase in reconditioning work, an 11% increase in warranty work, and a 6% increase in our customer pay,” Kearney said.
The group also opened its first Q auto store — a stand-alone used-car store —during the quarter, and is on track to open a second one this fall.
More Auto Finance

Interest Rates Further Squeeze Auto Consumers
Last month’s hike and a potential second increase this month add to a growing list of inflation woes that could continue to dent overall car sales.
Read More →
Mind Your Process
Consistent steps taken in various aspects of the F&I office can make valuable differences over time, similar to an outline for a best-selling book.
Read More →
Top Five Credit Application Fraud Flags
Compliance audits regularly reveal bad habits that can lead to fraud charges and should have been stamped out decades ago.
Read More →
More Auto Loans for the Taking in August
Riskier categories were on the uptick for the month as lenders loosened access in several areas while balancing out the exposure in another, Cox Automotive reported.
Read More →
July Was Hot for Auto Borrowers
Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →
Auto Refi Savings Surge
Consumers with 84-month auto loan terms who refinanced saved the most on monthly payments, according to a new report by auto refinancing provider Caribou.
Read More →
Subaru Enters Lending Business
The automaker follows other brands in adding captive financing in the U.S., and says the move will strengthen its position here.
Read More →
Positive Equity Reaches Record High
Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.
Read More →
Dealerships Are Paying the Price for Extended Car Loans
Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.
Read More →