ASBURY AUTOMOTIVE GROUP INC

Previous wording

•disruptions in the production and supply of vehicles and parts from our vehicle and parts manufacturers and other suppliers, which can disrupt our operations; and

Current wording

•disruptions in the production and supply of vehicles and parts from our vehicle and parts manufacturers and other suppliers, which can disrupt our operations;

Previous wording

•our estimated future capital expenditures, which can be impacted by increasing prices and labor shortages and acquisitions and divestitures.

Current wording

•our estimated future capital expenditures, which can be impacted by increasing prices and labor shortages and acquisitions and divestitures; and

Previous wording

•our ability to execute our initiatives and other strategies; and

Current wording

•our ability to execute our initiatives and other strategies;

Previous wording

•our ability to leverage scale and cost structure to improve operating efficiencies across our dealership portfolio.

Current wording

•our ability to leverage scale and cost structure to improve operating efficiencies across our dealership portfolio; and

Previous wording

We are one of the largest automotive retailers in the United States. As of March 31, 2024, through our Dealerships segment, we owned and operated 206 new vehicle franchises (157 dealership locations), representing 31 brands of automobiles, and 37 collision centers within 15 states. Our stores offer an extensive range of automotive products and services, including new and used vehicles; parts and service, which includes repair and maintenance services, replacement parts and collision repair services; and finance and insurance products. The finance and insurance products are provided by both independent third parties and TCA. The F&I products offered by TCA are sold through affiliated dealerships. For the three months ended March 31, 2024, our new vehicle revenue brand mix consisted of 29% luxury, 41% imports and 30% domestic brands. The Company manages its operations in two reportable segments: Dealerships and TCA. Amounts presented have been calculated using non-rounded amounts for all periods presented and therefore certain amounts may not compute.

Current wording

We are one of the largest automotive retailers in the United States. As of June 30, 2024, through our Dealerships segment, we owned and operated 204 new vehicle franchises (155 dealership locations), representing 31 brands of automobiles, and 37 collision centers within 15 states. Our stores offer an extensive range of automotive products and services, including new and used vehicles; parts and service, which includes repair and maintenance services, replacement parts and collision repair services; and finance and insurance products. The finance and insurance products are provided by both independent third parties and TCA. The F&I products offered by TCA are sold through affiliated dealerships. For the six months ended June 30, 2024, our new vehicle revenue brand mix consisted of 29% luxury, 41% imports and 29% domestic brands. The Company manages its operations in two reportable segments: Dealerships and TCA. Amounts presented have been calculated using non-rounded amounts for all periods presented and therefore certain amounts may not compute.

Previous wording

On December 11, 2023, the Company completed the acquisition of substantially all of the assets, including all real property and businesses of the Jim Koons Dealerships ("Koons") pursuant to a Purchase and Sale Agreement with various entities that comprise the Jim Koons automotive dealerships group (the "Koons acquisition") for an aggregate purchase price of approximately $1.50 billion, which includes $256.1 million of new vehicle floor plan financing and $100.9 million of assets held for sale related to Koons Lexus of Wilmington. The acquisition was funded with borrowings under Asbury’s existing credit facility and cash on hand. The Koons acquisition comprised 20 new vehicle dealerships and six collision centers.

Current wording

On December 11, 2023, the Company completed the acquisition of substantially all of the assets, including all real property and businesses of the Jim Koons Dealerships ("Koons") pursuant to a Purchase and Sale Agreement with various entities that comprise the Jim Koons automotive dealerships group (the "Koons acquisition"). The Koons acquisition comprised 20 new vehicle dealerships and six collision centers.

Previous wording

•Consolidated revenue for the three months ended March 31, 2024 was $4.20 billion, compared to $3.58 billion for the prior year.

Current wording

•Consolidated revenue for the six months ended June 30, 2024 was $8.45 billion, compared to $7.32 billion for the prior year.

Previous wording

•Consolidated gross profit for the three months ended March 31, 2024 was $750.0 million, compared to $696.2 million for the prior year.

Current wording

•Consolidated gross profit for the six months ended June 30, 2024 was $1.48 billion, compared to $1.41 billion for the prior year.

Previous wording

•The increase in consolidated revenue and gross profit is primarily due to the effects of the Koons acquisition. Refer to Note 3, "Acquisitions and Divestitures" for further details.

Current wording

•The increase in consolidated revenue and gross profit is primarily due to the effects of the Koons acquisition, offset by the negative impact of the CDK outage in June 2024 as well as lower gross profit per vehicle sold for both new and used vehicles as margins continue to shift downward from the historic highs in recent years.

Previous wording

•Our capital allocation priorities were supported by the repurchase of 239,790 shares for $50.0 million during the three months ended March 31, 2024.

Current wording

•Our capital allocation priorities were supported by the repurchase of 432,389 shares for $93.2 million during the six months ended June 30, 2024.

Previous wording

The Company's operating results for the three months ended March 31, 2024 include the results of the Koons dealerships acquired in the fourth quarter of 2023. Accordingly, the increases in revenue, gross profit and income from operations for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 are largely a result of this acquisition.

Current wording

The Company's operating results for the three and six months ended June 30, 2024 include the results of the Koons dealerships acquired in the fourth quarter of 2023. Accordingly, the increases in revenue and gross profit for the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023 are largely a result of this acquisition. Additionally, during the three months ended June 30, 2024, we recorded asset impairments of $135.4 million related to franchise rights impairments for certain underperforming stores, limited primarily to one brand.

Previous wording

For the three months ended March 31, 2024, used vehicle retail gross profit margins decreased from 6.9% to 5.5% and 6.9% to 5.4%, respectively, for all stores and on a same store basis when compared to the same period of the prior year. Used vehicle retail gross profit decreased $5.7 million (8%) for the three months ended March 31, 2024 as compared to the three months ended March 31, 2023 and decreased $17.5 million (25%) on a same store basis for the same period. On a total company basis, our gross profit per used vehicle retailed decreased $496 (23%), and on a same store basis, our gross profit per used vehicle retailed decreased $508 (24%) when compared to the prior year period which was primarily driven by decreases in used vehicle market prices.

Current wording

For the three months ended June 30, 2024, used vehicle retail gross profit margins decreased from 6.5% to 4.8% and 6.5% to 5.1% respectively, for all stores and on a same store basis when compared to the same period of the prior year. Used vehicle retail gross profit decreased $9.4 million (14%) for the three months ended June 30, 2024 as compared to the three months ended June 30, 2023 and decreased $17.8 million (27%) on a same store basis for the same periods. On a total company basis our gross profit per used vehicle retailed decreased $618 (30%), and on a same store basis, our gross profit per used vehicle retailed decreased $532 (26%) when compared to the prior year period which was primarily driven by decreases in used vehicle market prices. Additionally, the CDK outage had a negative impact on our used vehicle revenue and gross profit during the quarter ended June 30, 2024 as a result of fewer used vehicle sales.

Previous wording

*Reconditioning and preparation represents the gross profit earned by our parts and service departments for internal work performed is included as a reduction of Parts and Service Cost of Sales in the accompanying Condensed Consolidated Statements of Income upon the sale of the vehicle.

Current wording

Reconditioning and preparation represents the gross profit earned by our parts and service departments for internal work performed and is included as a reduction of Parts and Service Cost of Sales in the accompanying Condensed Consolidated Statements of Income upon the sale of the vehicle.

Previous wording

Direct expenses incurred for the acquisition of F&I contracts on which revenue has not yet been recognized have been deferred and are amortized over the related contract period. During the three months ended March 31, 2024, TCA recorded $8.6 million of cost of sales consisting primarily of claims expense, after the elimination of claims paid to affiliated dealerships. Commissions expense paid by TCA to our affiliated dealerships and reflected as F&I revenue in our Dealerships segment is eliminated in the TCA segment upon consolidation.

Current wording

Direct expenses incurred for the acquisition of F&I contracts on which revenue has not yet been recognized have been deferred and are amortized over the related contract period. During the three months ended June 30, 2024, TCA recorded $17.7 million of cost of sales consisting primarily of claims expense. Commissions expense paid by TCA to our affiliated dealerships and reflected as F&I revenue in our Dealerships segment is eliminated in the TCA segment upon consolidation.

Previous wording

As we continue to integrate TCA, we expect a rollout of TCA products to our remaining stores by the end of 2024. With the ownership of TCA, while the combined profitability of the transaction is higher, the timing of revenue and cost recognition is deferred and amortized over the life of the contract. We expect that this rollout will result in lower F&I revenue and gross profit over the next two to three years due to the change in how these contracts are earned.

Current wording

As we continue to integrate TCA, we expect a rollout of TCA products to our remaining stores by the end of 2024. With the ownership of TCA, while the combined profitability of the transaction is higher, the timing of revenue and cost recognition isdeferred and amortized over the life of the contract. We expect that this rollout will result in lower F&I revenue and gross profit over the next two to three years due to the change in how these contracts are earned.

Previous wording

SG&A expense as a percentage of gross profit increased 459 basis points from 57.9% for the three months ended March 31, 2023 to 62.5% for the three months ended March 31, 2024, while same store SG&A expense as a percentage of gross profit increased 459 basis points to 62.3% over the same period. The increase in SG&A as a percentage of gross profit on a total company basis during the three months ended March 31, 2024 is primarily the result of higher cost in personnel and other categories in SG&A expense partially offset by higher gross profits for the three months ended March 31, 2024 as compared to the three months ended March 31, 2023. The increase in SG&A as a percentage of gross profit on the same store basis during the three months ended March 31, 2024 is primarily the result of lower gross profits for the three months ended March 31, 2024 as compared to the three months ended March 31, 2023. On a total company basis, SG&A expense increased by $65.6 million for the three months ended March 31, 2024 as compared to the three months ended March 31, 2023 primarily due to the Koons acquisition in December 2023.

Current wording

SG&A expense as a percentage of gross profit increased 792 basis points from 57.3% for three months ended June 30, 2023 to 65.2% for three months ended June 30, 2024, while same store SG&A expense as a percentage of gross profit increased 778 basis points to 64.9% over the same period in 2024. The increase in SG&A expense as a percentage of gross profit on a total company basis during the three months ended June 30, 2024 is primarily the result of higher cost in personnel and other categories in SG&A expense partially offset by higher gross profits for the three months ended June 30, 2024 as compared to the three months ended June 30, 2023. The increase in SG&A as a percentage of gross profit on the same store basis during the three months ended June 30, 2024 is primarily the result of lower gross profits for the three months ended June 30, 2024 as compared to the three months ended June 30, 2023 . On a total company basis, SG&A expense increased by $68.0 million for the three months ended June 30, 2024 as compared to the three months ended June 30, 2023 primarily due to the Koons acquisition in December 2023. Additionally, during the three months ended June 30, 2024 and 2023, we incurred $3.1 million and $4.3 million, respectively, of losses related to hail damage at certain dealerships.

Previous wording

Total revenue for the three months ended March 31, 2024 increased by $618.9 million (17%) compared to the three months ended March 31, 2023, due to a $296.6 million (17%) increase in new vehicle revenue, a $230.4 million (20%) increase in used vehicle revenue, a $74.8 million (15%) increase in parts and service revenue and a $17.2 million (10%) increase in F&I, net revenue. The $53.8 million (8%) increase in gross profit during the three months ended March 31, 2024 was driven by a $52.0 million (18%) increase in parts and service gross profit and a $22.9 million (14%) increase in F&I, net gross profit, partially offset by a $16.0 million (9%) decrease in new vehicle gross profit and a $5.1 million (7%) decrease in used vehicle gross profit.

Current wording

Total revenue for the six months ended June 30, 2024 increased by $1,122.6 million (15%) compared to the six months ended June 30, 2023, due to a $518.8 million (14%) increase in new vehicle revenue, a $431.1 million (19%) increase in used vehicle revenue, a $129.5 million (12%) increase in parts and service revenue and a $43.2 million (13%) increase in F&I, net revenue. The $71.4 million (5%) increase in gross profit during the six months ended June 30, 2024 was driven by a $99.9 million (17%) increase in parts and service gross profit and a $32.4 million (10%) increase in F&I, net gross profit, partially offset by a $46.0 million (13%) decrease in new vehicle gross profit and a $15.0 million (10%) decrease in used vehicle gross profit. The increase in revenue and gross profit is largely attributable to the Koons acquisition and is offset by the negative impact of the CDK outage. The CDK outage had a negative impact on our financial results during the quarter ended June 30, 2024 as a result of fewer new and used vehicle sales, which also impacted our F&I business, and a reduction in parts and service volumes.

Previous wording

Income from operations during the three months ended March 31, 2024 decreased by $13.7 million (5%), compared to the three months ended March 31, 2023, primarily due to a $65.6 million (16%) increase in SG&A expense and a $1.9 million (12%) increase in depreciation and amortization expense, partially offset by a $53.8 million (8%) increase in gross profit.

Current wording

Income from operations during the six months ended June 30, 2024 decreased by $200.9 million (36%), compared to the six months ended June 30, 2023, primarily due to a $135.4 million increase in franchise rights impairment and a $133.6 million (16%) increase in SG&A expense and a $3.4 million (10%) increase in depreciation and amortization expense, partially offset by a $71.4 million (5%) increase in gross profit.

Previous wording

Total other expenses, net increased by $28.9 million (76%), primarily as a result of a $22.2 million increase in floor plan interest expense and an increase of $6.7 million (18%) in other interest expense, net recorded during the three months ended March 31, 2024 when compared to the same period of the prior year. Income before income taxes decreased $42.7 million (18%) to $195.8 million for the three months ended March 31, 2024. Overall, net income decreased by $34.3 million (19%) during the three months ended March 31, 2024 as compared to the three months ended March 31, 2023.

Current wording

Total other expenses, net increased by $64.8 million (100%), primarily as a result of a $42.4 million increase in floor plan interest expense, an increase of $12.6 million (16%) in other interest expense, net and a $9.9 million (73%) decrease in gain on dealership divestitures, recorded during the six months ended June 30, 2024 when compared to the same period of the prior year. Income before income taxes decreased $265.8 million (53%) to $233.9 million for the six months ended June 30, 2024. Overall, net income decreased by $202.5 million (54%) during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023.

Previous wording

For the three months ended March 31, 2024, new vehicle gross profit and same store new vehicle gross profit decreased by $16.0 million (9%) and $40.9 million (23%), respectively. Same store new vehicle gross margin for the three months ended March 31, 2024 decreased 227 basis points to 7.8% driven by the slight easing of new vehicle inventory constraints which softened the historically high new vehicle margins seen in recent years.

Current wording

For the six months ended June 30, 2024, new vehicle gross profit and same store new vehicle gross profit decreased by $46.0 million (13%) and $94.8 million (26%), respectively. Same store new vehicle gross margin for the six months ended June 30, 2024 decreased 232 basis points to 7.5% driven by the continued easing of new vehicle inventory constraints which softened the historically high new vehicle margins seen in recent years.

Previous wording

The seasonally adjusted annual rate ("SAAR") for new vehicle sales in the U.S. during the three months ended March 31, 2024 was approximately 15.4 million which increased as compared to approximately 15.2 million during the three months ended March 31, 2023. The increase in SAAR period over period reflects higher inventory supply coupled with continued consumer demand for new vehicles. However, we continue to be impacted by the significant variation in new vehicle days supply among brands and models.

Current wording

The seasonally adjusted annual rate ("SAAR") for new vehicle sales in the U.S. during the six months ended June 30, 2024 was approximately 15.5 million which increased as compared to approximately 15.3 million during the six months ended June 30, 2023. The increase in SAAR period over period reflects higher inventory supply coupled with continued consumer demand for new vehicles. However, we continue to be impacted by the significant variation in new vehicle days supply among brands and models.

Previous wording

Used vehicle revenue increased by $230.4 million (20%) due to a $169.7 million (17%) increase in used vehicle retail revenue and a $60.6 million (58%) increase in used vehicle wholesale revenue. Same store used vehicle revenue decreased by $19.5 million (2%) due to a $44.4 million (4%) decrease in used vehicle retail revenue, partially offset by a $24.9 million (24%) increase in used vehicle wholesale revenue. Total used vehicle retail unit sales increased by 20% due to the Koons acquisition while same store used vehicle retail unit sales decreased by 2% during the three months ended March 31, 2024 as compared to the three months ended March 31, 2023. Used vehicle revenue and unit volume have continued to contract as seen in the first quarter of 2024, along with margins on both an all store and same store basis. Used vehicle revenue and unit volumes have been negatively impacted by the lack of inventory availability, especially in vehicles with lower mileage. For the three months ended

Current wording

Used vehicle revenue increased by $431.1 million (19%) due to a $323.6 million (16%) increase in used vehicle retail revenue and a $107.5 million (54%) increase in used vehicle wholesale revenue. Same store used vehicle revenue decreased by $85.1 million (4%) due to a $120.6 million (6%) decrease in used vehicle retail revenue, partially offset by a $35.5 million (18%) increase in used vehicle wholesale revenue. Total used vehicle retail unit sales increased by 21% due to the Koons acquisition while same store used vehicle retail unit sales decreased by 2% during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023. Revenue per used vehicle retailed have continued to contract as seen in the second quarter of 2024, along with margins on both an all store and same store basis. Used vehicle revenue and unit volumes have been negatively impacted by the lack of inventory availability, especially in vehicles with lower mileage.

Previous wording

The $74.8 million (15%) increase in parts and service revenue was primarily due to a $53.2 million (16%) increase in customer pay revenue, a $14.6 million (22%) increase in warranty revenue and a $6.9 million (6%) increase in wholesale parts revenue. Same store parts and service revenue increased by $8.7 million (2%) from $513.3 million for the three months ended March 31, 2023 to $522.0 million for the three months ended March 31, 2024. The increase in same store parts and service revenue was due to a $5.7 million (2%) increase in customer pay revenue, a $6.0 million (9%) increase in warranty revenue, partially offset by a $3.0 million (3%) decrease in wholesale parts revenue. The trend of increased aging of vehicles, which are at historically high levels, is leading to increased customer pay and warranty revenues. Consumers are owning a vehicle for longer periods of time due to various factors, including the higher cost of vehicles, higher interest rates, as well as the vehicle inventory constraints experienced in the automotive industry in recent years.

Current wording

The $129.5 million (12%) increase in parts and service revenue was primarily due to a $89.1 million (16%) increase in customer pay revenue, a $27.7 million (21%) increase in warranty revenue, a $7.9 million (4%) increase in wholesale parts revenue and a $4.7 million (3%) increase in collision revenue. Same store parts and service revenue decreased slightly by $0.6 million from $1.03 billion for the six months ended June 30, 2023 to $1.03 billion for the six months ended June 30, 2024. The decrease in same store parts and service revenue was due to a $10.7 million (5%) decrease in wholesale parts revenue and a $10.7 million (8%) decrease in collision revenue, partially offset by a $10.7 million (8%) increase in warranty revenue and a $10.0 million (2%) increase in customer pay revenue. Consumers are owning a vehicle for longer periods of time due to various factors, including the higher cost of vehicles, higher interest rates, as well as the vehicle inventory constraints experienced in the automotive industry in recent years.

Previous wording

For the three months ended March 31, 2024, total parts and service gross profit increased by $52.0 million (18%) to $334.1 million, and same store total parts and service gross profit increased by $15.9 million (6%) to $296.8 million when compared to the same period of prior year. The all store increase is primarily due to the Koons acquisition and reconditioning and preparation, while the same store increase is primarily a result of reconditioning and preparation, and increased customer pay and warranty volume, which is in line with the increasing trend of aged vehicles.

Current wording

For the six months ended June 30, 2024, total parts and service gross profit increased by $99.9 million (17%) to $674.0 million, and same store total parts and service gross profit increased by $26.3 million (5%) to $594.7 million when compared to the same period of the prior year. The all store increase is primarily due to the Koons acquisition, while the same store increase is primarily a result of increased customer pay and warranty volume and reconditioning and preparation, which is in line with the increasing trend of aged vehicles.

Previous wording

F&I revenue, net increased $17.2 million (10%) during the three months ended March 31, 2024 when compared to the three months ended March 31, 2023, as a result of a 19% increase in new and used retail unit sales, partially offset by a 4% decrease in F&I per vehicle retailed.

Current wording

F&I revenue, net increased $43.2 million (13%) during the six months ended June 30, 2024 when compared to the six months ended June 30, 2023, as a result of a 17% increase in new and used retail unit sales, partially offset by a 6% decrease in F&I per vehicle retailed.

Previous wording

On a same store basis, F&I revenue, net decreased by $16.5 million (10%) during the three months ended March 31, 2024 when compared to the three months ended March 31, 2023, as a result of a 1% decrease in new and used retail unit sales and a 6% decrease in F&I per vehicle retailed. We are seeing slightly lower penetration rates in our F&I products as customers look for ways to manage lower monthly payments in a rising interest rate environment.

Current wording

On a same store basis, F&I revenue, net decreased by $24.5 million (7%) during the six months ended June 30, 2024 when compared to the six months ended June 30, 2023, as a result of a 3% decrease in new and used retail unit sales and an 8% decrease in F&I per vehicle retailed. We are seeing slightly lower penetration rates in our F&I products as customers look for ways to manage lower monthly payments in a higher interest rate environment.

Previous wording

Revenue generated by TCA is earned over the period of the related product contract. The method for recognizing revenue is assigned based on contract type and expected claim patterns. Premium revenues are supplemented with investment gains or losses and income earned associated with the performance of TCA's investment portfolio. During the three months ended March 31, 2024, TCA generated $30.7 million of revenue, consisting primarily of earned premium and $4.2 million from the investment portfolio.

Current wording

Revenue generated by TCA is earned over the period of the related product contract. The method for recognizing revenue is assigned based on contract type and expected claim patterns. Premium revenues are supplemented with investment gains or losses and income earned associated with the performance of TCA's investment portfolio. During the six months ended June 30, 2024, TCA generated $68.4 million of revenue, consisting primarily of earned premium and $8.6 million investment income from the investment portfolio.

Previous wording

Floor plan interest expense increased by $22.2 million to $22.8 million during the three months ended March 31, 2024 compared to $0.6 million during the three months ended March 31, 2023 due to higher levels of new inventory and the lower floor plan offset account balances held during the three months ended March 31, 2024 as compared to three months ended March 31, 2023.

Current wording

Floor plan interest expense increased by $42.4 million to $43.8 million during the six months ended June 30, 2024 compared to $1.5 million during the six months ended June 30, 2023 due to higher levels of new inventory on hand and lower balances held in our floor plan offset accounts during the six months ended June 30, 2024 as compared to six months ended June 30, 2023.

Previous wording

The $8.4 million (15%) decrease in income tax expense was primarily the result of a $42.7 million (18%) decrease in income before income taxes. For thethree months ended March 31, 2024 and 2023, our effective income tax rate was 24.9% and 23.9%, respectively, which differed from the U.S. statutory rate primarily due to the favorable effects of the windfall component of equity compensation, a discrete item, and unfavorable effects of various permanent tax adjustments such as executive compensation. We currently estimate our effective tax rate for the year ended December 31, 2024 at approximately 25.0%.

Current wording

The $63.2 million (52%) decrease in income tax expense was primarily the result of a $265.8 million (53%) decrease in income before income taxes. For thesix months ended June 30, 2024 and 2023, our effective income tax rate was 25.1% and 24.4%, respectively, which differed from the U.S. statutory rate primarily due to the favorable effects of the windfall component of equity compensation, a discrete item, and unfavorable effects of various permanent tax adjustments such as executive compensation. We currently estimate our effective tax rate for the year ended December 31, 2024 at approximately 25.0%.

Previous wording

As of March 31, 2024, we had total available liquidity of $712.3 million, which consisted of cash and cash equivalents of $19.8 million (excluding $9.2 million held by TCA), available funds in our floor plan offset accounts of $205.2 million and $486.0 million of availability under our revolving credit facility and $1.4 million of availability under our used vehicle floor plan facility. The borrowing capacities under our revolving credit facility and our used vehicle floor plan facility are limited by borrowing base calculations and, from time-to-time, may be further limited by our required compliance with certain financial covenants. As of March 31, 2024, these financial covenants did not further limit our availability under our other credit facilities.

Current wording

As of June 30, 2024, we had total available liquidity of $806.0 million, which consisted of cash and cash equivalents of $52.6 million (excluding $14.7 million held by TCA), available funds in our floor plan offset accounts of $411.4 million, $56.0 million of availability under our revolving credit facility and $286.1 million of availability under our used vehicle floor plan facility. The borrowing capacities under our revolving credit facility and our used vehicle floor plan facility are limited by borrowing base calculations and, from time-to-time, may be further limited by our required compliance with certain financial covenants. As of June 30, 2024, these financial covenants did not further limit our availability under our other credit facilities.

Previous wording

During the three months ended March 31, 2024, we repurchased 239,790 shares of our common stock under our repurchase program for a total of $50.0 million. On May 26, 2023, we announced that our Board of Directors authorized a new $250.0 million share repurchase authorization (the "New Share Repurchase Authorization"), which replaced our previous share repurchase authorization. As of March 31, 2024, we had $152.6 million remaining under our New Share Repurchase Authorization.

Current wording

During the three and six months ended June 30, 2024, we repurchased 192,599 and 432,389 shares of our common stock under our repurchase program for a total of $43.2 million and $93.2 million. On May 15, 2024, the Company announced that its Board of Directors approved an increase of $256.2 million in the Company's common share repurchase authorization to $400.0 million (the "New Share Repurchase Authorization"). As of June 30, 2024, we had $365.6 million remaining under its share repurchase authorization.

Previous wording

During the three months ended March 31, 2024, we repurchased 45,399 shares of our common stock for $9.8 million, from employees in connection with a net share settlement feature of employee equity-based awards.

Current wording

During the three and six months ended June 30, 2024, we repurchased 262 and 45,661 shares of our common stock for $0.1 million and $9.9 million, respectively, from employees in connection with a net share settlement feature of employee equity-based awards.

Previous wording

Net cash provided by operating activities totaled $177.1 million and $171.7 million, for the three months ended March 31, 2024 and 2023, respectively. Adjusted cash flow provided by operating activities totaled $208.7 million and $243.9 million, for the three months ended March 31, 2024 and 2023, respectively. Adjusted cash flow provided by operating activities includes net income, adjustments to reconcile net income to net cash provided by operating activities, changes in working capital, changes in used vehicle borrowing base, changes in floor plan notes payable—non-trade and trade, excluding the impact of offsets, and excluding operating cash flows associated with acquisitions and divestitures related to loaner vehicles and new vehicle inventories financed through floor plan notes payable—trade.

Current wording

Net cash provided by operating activities totaled $22.7 million and $221.7 million, for the six months ended June 30, 2024 and 2023, respectively. Adjusted cash flow provided by operating activities totaled $402.0 million and $418.3 million, for the six months ended June 30, 2024 and 2023, respectively. Adjusted cash flow provided by operating activities includes net income, adjustments to reconcile net income to net cash provided by operating activities, changes in working capital, changes in used vehicle borrowing base, changes in floor plan notes payable—non-trade and trade, excluding the impact of offsets, and excluding operating cash flows associated with acquisitions and divestitures related to loaner vehicles and new vehicle inventories financed through floor plan notes payable—trade.

Previous wording

The $35.2 million decrease in adjusted cash flow provided by operating activities for the three months ended March 31, 2024 compared to the three months ended March 31, 2023, was primarily the result of the following:

Current wording

The $16.3 million decrease in adjusted cash flow provided by operating activities for the six months ended June 30, 2024 compared to the six months ended June 30, 2023, was primarily the result of the following:

Previous wording

•decrease in $19.8 million net income and non-cash adjustments to net income;

Current wording

•decrease of $34.0 million in net income and non-cash adjustments to net income;

Previous wording

•$49.1 million related to an increase in inventory, net of floor plan notes payable, including both trade and non-trade, excluding offset and including used vehicle borrowing base changes adjusted for acquisitions and divestitures;

Current wording

•decrease of $59.0 million in inventory, net of floor plan notes payable, including both trade and non-trade, excluding offset and including used vehicle borrowing base changes adjusted for acquisitions and divestitures; and

Previous wording

•$34.1 million related to the increase in other current assets, net; and

Current wording

•decrease of $19.5 million in other current assets, net.

Previous wording

•$89.9 million related to a decrease in accounts payable and accrued liabilities; and

Current wording

•$71.3 million increase related to accounts payable and accrued liabilities;

Previous wording

•$5.3 million increase in other long term assets and liabilities, net.

Current wording

•$15.7 million increase related to other long term assets and liabilities, net; and

Previous wording

•$13.1 million related to sales volume and the timing of collection of accounts receivable and contracts-in-transit during 2024 as compared to 2023.

Current wording

•$9.7 million increase related to sales volume and the timing of collection of accounts receivable and contracts-in-transit during 2024 as compared to 2023.