Asbury Automotive Group, Inc. (NYSE:ABG) Q1 2023 Earnings Call Transcript

David Hult: Bret, this is David. Yes, I might be pollyanna on this. But I don’t see us getting back there. I think the OEMs are going to be a lot more efficient and better at day supply. And I think it’ll float higher and specifically to Asbury selling off the stores in Crown and Mississippi and with the acquisitions that we had will naturally be higher. And again, last couple of years, the press — our cars haven’t been available, average age of the car is 12 years. As long as we can keep the day supply in check, we think we can maintain healthy margins for the next couple of years. Albeit they may drop some, we don’t see 2019 coming back anytime soon if at all ever.

Bret Jordan: Okay. And on that day supply, I mean, obviously Stellantis you said over 60. Is that strategic because they may be the UAW strike example, or are they just producing for the sake of producing?

David Hult: Yes. I would say I don’t know that answer specifically but I would assume they’ve had less issues getting with their suppliers and getting the necessarily — necessary products to put their vehicles content together. We’ve just been fortunate. But as a reminder, part of that day supply is stop-sale vehicles, on trucks that normally turn pretty quickly. So as those trucks sit for a couple months and we can’t sell them, it’s certainly hurting the day supply.

David Hult: Thank you. That concludes today’s call. We appreciate everyone participating today. We look forward to talking to you at the end of the second quarter. Have a great day.

Operator: This concludes today’s conference. You may disconnect your lines at this time, and we thank you for your participation.