UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): December 2, 2020
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation)
| (Commission File Number) | (IRS Employer Identification No.) | |||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
(770 ) 418-8200
(Registrant's telephone number, including area code)
None
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Trading | ||||||||||||||
| Title of each class | Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01 Regulation FD Disclosure.
Asbury Automotive Group, Inc. (the “Company”) issued a press release on December 2, 2020 announcing that its leadership team will host a webcast to unveil the Company’s Clicklane platform on December 2, 2020 at 10:00 a.m. The webcast can be viewed at asburyauto.com/clicklane. A copy of the press release and a copy of the slides to be used in connection with such webcast are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Form 8-K and incorporated herein by reference.
The information contained in this Item 7.01, including Exhibit 99.1 and Exhibit 99.2, are being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference into any registration statement or other filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference to such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | |||||||
| Press Release dated December 2, 2020 | ||||||||
| Clicklane Presentation dated December 2, 2020 | ||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ASBURY AUTOMOTIVE GROUP, INC. | |||||||||||
| Date: December 2, 2020 | By: | /s/ George A Villasana | |||||||||
| Name: | George A. Villasana | ||||||||||
| Title: | Senior Vice President, General Counsel & Secretary | ||||||||||
Exhibit 99.1
Media & Investor Contact:
Matt Pettoni
VP of Finance & Treasurer
(770) 418-8219
ir@asburyauto.com
ASBURY AUTOMOTIVE GROUP LAUNCHES CLICKLANE— THE FIRST-EVER END-TO-END CAR-BUYING SOLUTION— AND UNVEILS ITS FIVE-YEAR STRATEGIC VISION
The innovative platform is an evolution of Asbury’s PushStart tool and allows for consumers
to complete the entire car-buying transaction within 15 minutes
Duluth, Ga., December 2, 2020 - Asbury Automotive Group, Inc. (NYSE: ABG) (“Asbury” or the “Company”), one of the largest automotive retail and service companies in the U.S., announced today the launch of Clicklane— a communications technology ecosystem which allows for a true online car-buying and selling experience. Asbury partnered with Gubagoo to build the online platform that gives Asbury the ability to enhance the car buying experience across its store base and also to enter new markets focusing on the pre-owned vehicle business as a standalone Clicklane brand.
Clicklane fills many of the gaps that exist with online automotive retail platforms currently on the market. Features that are unique to this platform include:
•Penny perfect trade-in values and penny perfect loan payoffs
•Real-payment figures based on local taxes and fees
•Loan marketplace, which now includes more than 30 lenders
•VIN-specific finance & insurance products customized to the vehicle and consumer
•Ability to sign all documents online via DocuSign®
•In-tool service and collision appointment scheduler
Members of the Asbury executive leadership team will host a demonstration of the Clicklane platform on Wednesday, December 2 at 10 a.m. EST live at asburyauto.com/clicklane.
“Clicklane is the latest evolution in our omni-channel strategy that we began more than four years ago,” said CEO & President David Hult. “The future of the automotive retail industry
relies on innovation and our ability to meet consumers where they are— online. With Clicklane, we have created one platform for the entire life cycle of vehicle ownership and found the solution to what has been a fragmented process. Others may have pioneered the online car-buying experience, but we believe that we have perfected it.”
Asbury first piloted Clicklane at one of its stores in the Florida market, and it has now been implemented at several Asbury stores nationwide. The company plans to complete the Clicklane rollout to all its stores by the end of the first quarter of 2021.
The company also unveiled its five-year strategic plan to reach $20 billion of revenue by 2025 (20% compound annual growth), expand operating margins, and grow EPS in excess of revenue growth. Specifically, the company highlighted:
•Driving same-store revenue growth of $2 billion over five years,
•Acquiring $5 billion of additional revenue over five years, and
•Adding an incremental $5 billion of revenue through the new Clicklane platform.
About Asbury Automotive Group, Inc.
Asbury Automotive Group, Inc. ("Asbury"), a Fortune 500 company headquartered in Duluth, GA, is one of the largest automotive retailers in the U.S. Asbury currently operates 91 dealerships, consisting of 112 franchises, representing 31 domestic and foreign brands of vehicles. Asbury also operates 25 collision repair centers. Asbury offers customers an extensive range of automotive products and services, including new and used vehicle sales and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than historical fact, and may include statements relating to goals, plans, expectations, projections regarding the expected benefits of Clicklane, management’s plans, projections and objectives for future operations, scale and performance, integration plans and expected synergies from acquisitions, our financial position, results of operations, market position, capital allocation strategy, business strategy and expectations of our management with respect to, among other things: changes in general economic and business conditions, including the impact of COVID-19 on the automotive industry in general, the automotive retail industry in particular and our customers, suppliers, vendors and business partners; our relationships with vehicle manufacturers; our ability to improve our margins; operating cash flows and availability of capital; capital expenditures; the amount of our indebtedness; the completion of any pending and future acquisitions and divestitures; future return targets; future annual savings; general economic trends, including consumer confidence levels, interest rates, and fuel prices; and automotive retail industry trends. The following are some but not all of the factors that could cause actual results or events to differ materially from those anticipated, including: the impact of the COVID-19 pandemic, market factors, Asbury's relationships with, and the financial and operational stability of, vehicle manufacturers and other suppliers, acts of God or other incidents
which may adversely impact supply from vehicle manufacturers and/or present retail sales challenges, risks associated with Asbury's indebtedness (including available borrowing capacity, compliance with its financial covenants and ability to refinance or repay such indebtedness, on favorable terms), Asbury's relationships with, and the financial stability of, its lenders and lessors, risks related to competition in the automotive retail and service industries, general economic conditions both nationally and locally, governmental regulations, legislation, adverse results in litigation and other proceedings, and Asbury's ability to execute its technology initiatives and other operational strategies, Asbury's ability to leverage gains from its dealership portfolio, including its ability to realize the expected benefits of the acquisition of the Park Place dealership group, Asbury's ability to capitalize on opportunities to repurchase its debt and equity securities or purchase properties that it currently leases, and Asbury's ability to stay within its targeted range for capital expenditures. There can be no guarantees that Asbury's plans for future operations will be successfully implemented or that they will prove to be commercially successful. These risks, uncertainties and other factors are disclosed in Asbury’s Annual Report on Form 10-K, subsequent quarterly reports on Form 10-Q and other periodic and current reports filed with the Securities and Exchange Commission from time to time. These forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this press release. We expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, whether as a result of new information, future events or otherwise.
To the extent that statements in this presentation are not recitations of historical fact, such statements constitute “forward-looking statements" as such term is defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this presentation may include statements relating to goals, plans, expectations, projections regarding the expected benefits of Clicklane management’s plans, projections and objectives for future operations, scale and performance, integration plans and expected synergies from acquisitions, our financial position, results of operations, market position, capital allocation strategy, business strategy and expectations of our management with respect to, among other things: changes in general economic and business conditions, including the impact of COVID-19 on the automotive industry in general, the automotive retail industry in particular and our customers, suppliers, vendors and business partners; our relationships with vehicle manufacturers; our ability to improve our margins; operating cash flows and availability of capital; capital expenditures; the amount of our indebtedness; the completion of any pending and future acquisitions and divestitures; future return targets; future annual savings; general economic trends, including consumer confidence levels, interest rates, and fuel prices; and automotive retail industry trends. The following are some but not all of the factors that could cause actual results or events to differ materially from those anticipated, including: the impact of the COVID-19 pandemic, market factors, Asbury's relationships with, and the financial and operational stability of, vehicle manufacturers and other suppliers, acts of God or other incidents which may adversely impact supply from vehicle manufacturers and/or present retail sales challenges, risks associated with Asbury's indebtedness (including available borrowing capacity, compliance with its financial covenants and ability to refinance or repay such indebtedness, on favorable terms), Asbury's relationships with, and the financial stability of, its lenders and lessors, risks related to competition in the automotive retail and service industries, general economic conditions both nationally and locally, governmental regulations, legislation, adverse results in litigation and other proceedings, and Asbury's ability to execute its technology initiatives and other operational strategies, Asbury's ability to leverage gains from its dealership portfolio, including its ability to realize the expected benefits of the acquisition of the Park Place dealership group, Asbury's ability to capitalize on opportunities to repurchase its debt and equity securities or purchase properties that it currently leases, and Asbury's ability to stay within its targeted range for capital expenditures. There can be no guarantees that Asbury's plans for future operations will be successfully implemented or that they will prove to be commercially successful. These risks, uncertainties and other factors are disclosed in Asbury’s Annual Report on Form 10-K, subsequent quarterly reports on Form 10-Q and other periodic and current reports filed with the Securities and Exchange Commission from time to time. These forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this presentation. We expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement.
● Introduction - David Hult ● What is Clicklane? - Miran Maric ● Operational Impact - Dan Clara ● Financial - PJ Guido ● Strategic Vision - Miran Maric ● Closing - David Hult
● Guest experience remains biggest opportunity ● New business models emerging ● Industry still fragmented and consolidating ● Innovation and differentiation key to future ● Societal shifts due to changing environment ● Growing acceptance of online buying
Miran Maric VP & CMO
What is Clicklane?
SVP of Operations
Customized Buying Experience Real trade and payoff numbers F&I products that suit the customer Instant Loan Marketplace & Full Docusign
Customized Buying Experience A Smart Way of Buying Simplified flow customized to the individual consumer’s preferred buying journey
Products Customized to Your Vehicle Real Products for Your Vehicle Direct F&I product integration per VIN, based on the consumer’s driving habit information and usage information
Trade Value and Payoff: To The Penny
The Only Automotive Loan Marketplace Lenders You Know Expanded loan marketplace with 30+ lenders you know, providing real time approvals and financing options
Total Online Ownership Ecosystem Buying, servicing, and selling your car completely online is now a reality. Log in to your Clicklane account Choose your service center Sell & upgrade with ease
>400% Increase in Online Service Appointments from Q1 2016 to Q3 2020 +$20M Increased closing rate on repair order recommendations last year and created $20M in additional annualized service revenue Using Digital Innovation to Drive Performance In 2016, implemented a digital service platform for scheduling/coordinating service for guests that resulted in...
PJ Guido SVP, Chief Financial Officer
Performance, Efficiency & Innovation in any environment Decentralized Roll-up •Delivered 9% EPS growth per year •Formed 1995; IPO Mar’02 w/86 stores •Decentralized management, systems, and processes Recession & Restructure •Delivered 13% EPS growth per year from from Peak SAAR to Peak SAAR •Centralized processes, systems and management •Divested heavy truck and lending businesses Omni-Channel Rollout •Delivered 14% EPS growth per year in a flat SAAR •Launched PUSHSTART - our online selling tool Online & Scale-up •Pro forma revenue ~$9B, up from ~$7B •Redefine the guest experience •Further SG&A reductions EPS: $1.36 New Margin: 8.2% Used Margin: 12.0% F&I PVR: $749 SG&A: 77.9% Operating Margin: 3.0% EPS: $2.09 New Margin: 7.5% Used Margin: 11.4% F&I PVR: $997 SG&A: 76.8% Operating Margin: 3.2% EPS: $5.57 New Margin: 5.6% Used Margin: 7.9% F&I PVR: $1,397 SG&A: 68.8% Operating Margin: 4.6% EPS: $9.46 New Margin: 4.1% Used Margin: 6.9% F&I PVR: $1,630 SG&A: 68.4% Operating Margin: 4.6% “Omni-channel tools lowered costs while vehicle margins were under pressure”” Repurchased ⅓ of shares ($700m) Acquired 22 franchises ($2.6B Rev)Paid 3-4% Dividend Spent $100m on repurchases & $200m on acquisitions (1) Adjusted income per diluted share as previously disclosed. Please see year end 8k for reconciliations (1) (1) (1) (1)
Multiple Growth Drivers: Five Year Plan Focused, disciplined execution and capital allocation to drive revenue growth and profitability SAME STORE • Invest in training • Drive service retention • Continue to grow F&I • Increase market share • Focus on productivity • Focus on synergies/accretion • Grow within current markets • Expand to new markets • Create a growth “flywheel” • Keep leverage below 3.0x ACQUISITIONSDIGITAL 2021-2025 Targets 1. Grow the top line at 20% per year (more than double the size of the company) 2. Expand operating margins 3. Grow EPS in excess of top line (20%+ per year) • Drive traffic and conversion • Reach new markets with used • Expand margins • Create seamless platform
Five Year Growth Target: 2021-2025 Revenue $8B $2B $5B $5B $20B Same Store Acquisitions 2020 2025 -------------------- ~20% CAGR ------------------ (1) Proforma for Park Place acquisition and 2020 divestitures (1) Clicklane
TEST Deploy Scale Completed test pilot and now testing in multiple stores Complete roll-out to all stores by Q1 2021 Drive traffic, conversion, and enter new markets Path to Seamless Online/Offline Auto Retailer
Strategic Vision Miran Maric
Video Conferencing Consumer Facing Accessories Builder Co-Browsing & Guided Checkout Rental Integration Household Garage Data
Closing David Hult
The Clicklane Vision Logistics Network Penny perfect payoffs, penny perfect taxes and fees, loan marketplace, e-commerce platform for DAS, customized F&I products, negative equity integration, transparent information, sign all documents online Ownership Within Reach Video conferencing, rental integration, garage data, guided checkout, co-browsing Future Frictionless Tech Enhancements Personalized account to buy, sell, and service your vehicle. Buy parts, get collision estimates Full Automotive Ecosystem Superior Technology Backed by Fortune 500 automotive retailer Leverage omni-channel tools Omni-channel Integration Clicklane has the potential to enter new markets across the U.S. National Brand
