Q2 2022 Asbury Automotive Group Inc Earnings Call
Good day and welcome to the Asbury Automotive group second quarter 2020 earnings call.
This conference is being recorded.
At this time I would like to turn the conference over to Karen Reed. Please go ahead.
Thanks, operator, and good morning, everyone.
As Kevin noted today's call is being recorded and will be available for replay later this afternoon.
To Asbury automotive group's second quarter 2022 earnings call. The press release detailing our second quarter results was issued earlier. This morning and is posted on our website at Asbury audio Dot com.
Participating with me today are David Hult, our President and Chief Executive Officer, Dan Clara, Our senior Vice President of operations and Michael Walsh, Our senior Vice President and Chief Financial Officer at the conclusion of our remarks, we will open up the call for questions and will be available later for any follow ups.
Before we begin we must remind you that the discussion during the call today is likely to contain forward looking statements.
Forward looking statements are statements other than those which are historical in nature, which may include financial projections forecast and current expectations each of which are subject to significant uncertainties.
Information regarding certain of the risks that may cause actual results to differ materially from these statements. Please see our filings with the SEC from time to time, including our Form 10-K for the year ended December 2021, any subsequently filed quarterly reports on Form 10-Q, and our earnings release issued earlier today.
We expressly disclaim any responsibility to update forward looking statements.
In addition, certain non-GAAP financial measures as defined under SEC rules may be discussed on this call.
Wired by applicable SEC rules, we provide reconciliations of any such non-GAAP financial measures to the most directly comparable GAAP measures.
Website we.
We also posted an updated investor presentation on our website Asbury audio dot com, highlighting our second quarter results.
It is now my pleasure to hand, the call over to our CEO , David Hult, David. Thank you Karen and good morning, everyone welcome to our second quarter earnings call.
We continue to make strong progress towards our 2025 plan.
We grew adjusted EBITDA by 126 million to $352 million and adjusted EPS from $7 78.
The $10 in <unk> and.
An increase of 29% <unk>.
<unk> delivered an eight 5% adjusted operating margin increased revenue by $1 4 billion to $4 billion and increased gross profit by $305 million to $803 million and drove F&I gross profit per vehicle to $2390 up.
563.
During the second quarter, we executed on our plan of continuing to integrate our acquisitions and reducing our net leverage. In addition, the systems integration for the rollout of click Lane and total care auto was completed.
Combining a fully transactional tool with TCA requires significant work to integrate systematically across all platforms.
We'll start rolling out quickly to our acquired dealerships.
And TCA into the legacy Asbury stores during this quarter and.
In the second quarter, we sold almost 6600 units through quickly growing 17% from the first quarter of 2022 and.
55% year over year.
Quickly and is currently installed at 88 of our 155 dealerships.
On page to provide approximately $1 billion of revenue in 2022.
Currently our unit sales are governed by the lack of new vehicle inventory.
And our advertising campaign has been on hold until inventory levels improve.
Once completely rolled out to all 155 stores will be on pace for $2 2 billion in revenue through quickly by the end of 2023.
TCA provides us the opportunity to expand our business horizontally into our F&I business.
PCA generated $36 million of income year to date on the la <unk> stores, excluding unrealized losses on investments.
Once completely rolled out to all 155 stores and with future acquisitions, we expect EBITDAR from this unique asset to hit $185 million by 2025.
We continue to experience solid demand across all of our revenue streams.
But we do not anticipate a meaningful recovery in new inventory levels in 2022.
Year to date, we have generated $544 million of adjusted operating cash flow.
Net leverage decreased from two seven times at year end to two one times at the end of the second quarter.
Our strong cash flow and reduce leverage will allow us to shift our focus to strategic acquisitions and share buybacks.
With consumers financially healthy.
Similar financing readily available.
The car park age to record levels and sizable pent up demand combined with our technology to improve efficiency and productivity, we are well positioned to weather the current market conditions.
We look forward to continuing to deliver strong results for our shareholders be outstanding partners with our Oems to steward, they're great brands.
For an environment, where our team members can thrive while providing the most guest centric experience in automotive retail.
We have the right brands in the right states with the right people to execute our strategy to grow and improve our business.
Finally, I would like to acknowledge the hard work and dedication of all of my fellow Asbury teammates. It is through your efforts that we continue to produce strong results for our shareholders and be the most guest centric automotive retailer to serve our guests. Thank you.
I will now hand, the call over to Dan to discuss our operating performance.
Thank you David and good morning, everyone first thank you to all of our dedicated teammates who worked so hard to fulfill our commitment to being the most guest centric automotive retailer.
Now I'll turn to our same store performance compared to the second quarter of 2021 unless stated otherwise.
Starting with new vehicles in the second quarter, New vehicle inventory continued to remain well below normalized levels and consumer demand continues to outstrip supply at.
At the end of June our total new vehicle inventory was $238 million.
And our day supply was at 13 days down four days from the prior year quarter.
Due to supply constraints, our new vehicle volume declined 31% year over year.
However, we experienced a significant increase in our new average gross profit per vehicle.
<unk> increased $1913 from the prior year quarter to $5793.
We anticipate new inventory levels to remain low through 2022, and we are focused on maximizing profitability. While also remaining steadfast in our commitment to our guests and our mission to be the most guest centric automotive retailer.
Turning to used vehicles.
Had a 12% increase in used retail revenue, even with a 2% decrease in our us retail volume.
Used gross profit PBR was $2213.
Our total used vehicle inventory ended the quarter at $425 million.
Which represents a 34 day supply.
Down three days from the prior year.
One of the many benefits of the franchise model is a different venues to source vehicles, such as lease turn it trades loaner cars and the rec purchase from consumers, including our recently launched click land. So your core tool.
90% of our used inventory comes from the sources I just mentioned.
Are we used to new ratio for the quarter was 120% up from 84% in the prior year quarter.
Representing 98 used vehicles sales per rooftop.
Shifting to F&I.
We delivered a strong quarter in F&I within F&I P V. R <unk> $2409, an increase of $579 compared to the prior year quarter.
Thank you to all of our F&I team members for these tremendous results.
In the second quarter, our total front end yield per vehicle increased $1061 per vehicle to a total of $6250.
Moving to parts and service.
Our parts and service revenue increased 10% in the quarter.
The warranty revenue, which is outside of our control were up 19% our customer pay revenue continued its strong rebound posting 15% growth.
Jumping to clinically.
Cleveland continues to exceed our expectations and conversion rates transaction times.
New and used PBR F&I T V R and most importantly, the guest experience.
We sold almost 6600 vehicles through click lane in the second quarter, a 17% increase from the first quarter 2022.
In fact in the second quarter. It was click lanes best quarter ever with June posting the most click link sales since its inception. In addition, our marketing team continues to drive traffic through their relentless efforts in SCO as a reminder.
<unk> is all content built internally and does not require paid search.
We experienced a 16% increase in unique visitors year over year through our websites.
We want to take advantage of the only ecosystem that allows them to purchase a new use or CPO vehicle fully online.
Those sales of new vehicles continue to be restrained due to a lack of inventory we achieved a 55% increase in click link sales year over year, 92% of our transactions. This quarter were with customers that were incremental to Asbury dealership network.
Average transaction time remain roughly in line with prior quarters eight minutes for cash deals in 2014 minutes for finance deals.
Total front, NPV or the $3765 and F&I PV or of 2000, and 160 to $1, which equates to $5927 of total front end yield.
The average Cleveland customer credit score continues to be over 700, which is higher than the average credit score at our stores the.
The average down payment for vehicles was $8871.
80% of consumers seeking financing received instant approval, while an additional 10% requires some offline assistance, 90% of those that apply to were approved for financing.
44% of click land sales that trade ins with 62% of such trades, recondition and retail to consumers and.
And 95% of our click line deliveries are within a 50 mile radius of our stores.
Does allowing us the opportunity to retain our new customers in our parts and service departments.
<unk> customers are converting at nearly double the rate of traditional internet leads but we won't see the full potential until inventory levels normalize.
We are excited to announce <unk> second iteration of F&I products. Please.
Please reference our investor presentation, starting on page 19, where related details and visuals.
We have revamped the user experience to include a guided and hybrid approach that allows the consumer to purchase in a manner that is convenient for them. In addition, we are fully integrated and TCA and E contracting in the mix as.
As we rollout click link to our recently acquired stores, we expect sales to increase generating approximately $2 $2 billion in revenue by the end of 2023.
I will now hand, the call over to Michael to discuss our financial performance Michael.
Thank you Dan to our investors analyst team members and other participants on our call good morning.
I'd like to provide some financial highlights for our company for additional details on our financial performance for the quarter. Please see our financial supplement and our press release and our Investor presentation on our website.
Overall compared to the same quarter of last year adjusted net income increased 47%.
To $223 million.
Adjusted EPS increased 29% to $10.04.
Net income for the second quarter of 2022 was adjusted for onetime pretax losses totaling $29 million or 97 per diluted share primarily related to the sale of dealerships in the quarter.
Net income for the second quarter 2021 was adjusted for real estate net gains.
500000, or two cents per diluted share.
Year to date, we generated adjusted operating cash flow of $544 million.
Which combined with proceeds from divested stores allowed us to pay down $487 million of debt.
And our used vehicle line.
We repurchased $200 million in shares.
Excluding real estate purchases year to date, we spent approximately $40 million our capital expenditures.
Our balance sheet remains strong.
As we ended the quarter with approximately $1 billion of it.
It is comprised of cash excluding cash of total corrado.
We're quite offset accounts and availability on both our youth line a revolving credit facility.
Also at the end of the quarter, our pro forma adjusted net leverage ratio stood at two one times.
Now from two seven times at year end.
For 2022, we are planning for Capex of approximately $120 million.
This amount excludes real estate purchases and potential lease buyout opportunities that we consider to be financing transactions.
For the quarter TCA made $9 million of pre tax income, which included $8 million of unrealized losses on equity investments. Excluding these unrealized losses T say would've made $17 million for the quarter.
I would like to thank all of our teammates throughout Asbury, who dedicate themselves to build a brighter future for ourselves our communities and our shareholders.
Now I'll hand, the call back over to David to provide some closing remarks David.
Thank you Michael.
In closing, we are generating robust cash flow.
We've reduced our net leverage more than expected and.
And we are considering strategically aligned to opportunities for disciplined growth.
We're we're optimistic about the future of Asbury and achieving our 2025 plan, while delivering for our shareholders. This concludes our prepared remarks, we will now turn the call over to the operator and take your questions operator.
Thank you, ladies and gentlemen, if you would like to ask a question. Please signal by pressing star one on your telephone keypad. Please.
Please ensure that the mute function on your telephone is switched off to allow your signal to reach our equipment again. Please press star one to ask a question.
Next a brief pause to allow all participants the opportunity to signal for questions.
Yeah.
Okay.
The first question today comes from Daniel <unk> Stephens, Inc.
Yeah, Hey, good morning, guys, congrats on the quarter and thanks for taking our questions.
Oh cool I wanted to start on the parts and service side I'm not sure that everyone addressed this but showing continued strong growth I'd be curious to know what are the initiatives that you've implemented that have been driving this double digit growth maybe helping you guys gained share and then curious for any update on the labor backdrop on the technician side is there any any alleviation on that of late.
Market loosens or how is that developing.
Hey, Daniel Good morning. This is Dan so on the on the growth in our fixed operations.
For the last few years, we have been sharing with you our online initiative.
Making it convenient for the consumers to schedule their appointments online we last quarter, we saw a 38% increase year over year from consumers taking advantage of that now you can have that availability. All you want out there, but if you don't have the throughput in your shops to get to work in and out it's almost irrelevant. So the good news is not only are we being.
Convenient for our consumers to schedule in line, but we also have the throughput in our stores and.
And we saw our technician head count also increased year over year.
Yeah. There was there a second part of the question Oh, I think you asked me about the technicians.
Listen it is.
The technician situation is still the same that it has been I think that you can still hire and recruit technicians, but we're mainly focused not only at higher and recruiting them, but retaining them. A most importantly N. B is developing those from within the moment that you can get an entry level technician and move them up to a C level technician available technician and open.
And ultimately a master tech.
You build a tremendous amount of loyalty tremendous amount of knowledge and again it helps us get that throughput through the shop.
Thanks, Dan Thanks, Dan.
I wanted to ask a second one a quick lane you know penetration is growing and I don't know if P. V. On the F&I P V or is a bit light at the company average there were plenty of slides in the slide deck. This morning kind of rolling out new functionality, but I'm curious do you think there's an opportunity to drive that F&I P V. I a lot higher on the plane platform and maybe even higher than the chain average.
Or or what your consumer there is opting into that you can helped drive that metric higher.
Yeah, I think that it all comes back down to what the guest wants and the convenience of being able to acquire or protect our investment.
The day that they choose and what I mean by that is let's face it nobody likes to be sold something with this new iteration of the F&I product you can see if you look through the deck that you have the ability to build a la carte for a lack of a better term or you can also build or a select from the different bundles. So we do believe that there is.
An increase in how consumers are going to protect our investments in it.
And excited to see what results, we have but we're excited to release in the second iteration of the F&I of Cleveland, well I'll just add to that.
I haven't paid attention as if everyone.
Discusses their F&I numbers on their transactional tools online, but from our perspective, you know over 'twenty 100 car really self selecting by the consumer and in no engagement whatsoever from at Asbury employee, we think those numbers are pretty strong.
That was our first version of the F&I products that we launched the technology has gotten better the visualization.
To present the products is getting better. So we actually think there is room to improve on it.
But we're really quite pleased with the self selection for the consumer being over 2000.
Are all of the same product available on click Lane and then in a dealership.
Yeah, we focus on the core products.
Some dealerships have unique circumstances within their markets and their brands, where they might sell some additional products, we kind of stay focused on the national mainstay products on.
On the platform.
Great and then last one for me Mike Whats on the balance sheet, you know about two times net leverage here, where do you want to get that down to over the intermediate term.
Maybe looking at more M&A and on the buyback it looks like you bought back one 1 million shares I think that exhaust the existing authorization.
Where does that fit into your capital priorities. Thanks.
So all the share buybacks that was all done in the first quarter and so that's all just a first quarter share buy backs and nothing in the second quarter from a leverage perspective, yeah. We got we wanted to get down to call. It two times before he started looking at acquisitions again and so we're at the level, we want to be at in terms of leverage to be able to be acquisitive on the acquisition front so far.
First priority is acquisitions, but of course with the sheer mark share price be a little volatile there are some opportunities for some share buybacks as well.
Great. Thanks for all the color best of luck going forward guys.
Thank you.
Our next question comes from Rajat Gupta of Jpmorgan.
Great Good morning, and thanks for taking the questions.
Florida on their earnings call made some interesting comments last night, they continue to see the dealers.
Key to their electric vehicle strategy, but also noted how the profile of the dealership margin structure might change.
You also made some comments around Floorplan assistance, which is not you talked about you know.
<unk> hundred 70, <unk> hundred pricing related compression Gpus overtime.
Well my sense is that putting these things together now and in the low inventory model.
It implies that if all of you about what you actually happen, but still from Gpus dumps.
Comfortably above pre pandemic levels and also lead to structurally lower SG&A.
Just curious if I'm missing anything there.
Just provide you all towards investors should all be concerned about dealer bottom line EBITDA margins going back to sleep and dynamic market.
This is David I'll address that as best I can without disclosing too many private conversations with our manufacturer partner.
We feel really lucky I'm proud to represent the Ford brand.
And we're very optimistic about the future with them I think some of it gets a little bit lost in context, when I was talking about the margin, it's not as much of it going away as much as it might be being redistributed in other sections through the ownership piece of it.
Naturally performance on the guest experience.
I think we're in uncharted territories, you know going forward into this EV market growing the way that it is in everyone's coming to market with their products and you know we still need to find out if the average consumer has the propensity to buy electric vehicles right out of the gate, what I would say is.
We feel like with what we've done with our Omnichannel approach, what we've done with our digital tools and where we think the future is going we think we're really well positioned to be a really good partner, we still feel the same going forward as it relates to SG&A. We think over the next few years, we have an opportunity.
To bring it down over time, but.
But the age old supply and demand retaining margins.
I would say this I've said it in past quarters, so I'm going to stay consistent with it.
Even if inventories normalize and we get back to pre pandemic.
The inventory levels, you won't see us get back to pre pandemic.
Margins or I shouldn't say margins gross profits per vehicles.
We're a different company I think it's a different time and space right now and I think youll see elevated margins from pre pandemic levels going forward, even as the day supply grows.
Got it got it that's helpful.
And maybe just to follow up on some of your comments in the prepared remarks around consumers still financially healthy.
Maybe if you could give us a more likely just update us in terms of what.
What are you seeing on the ground you know any pockets of weakness anywhere in the region with respect to underlying demand in general.
Because it seems like Youre reiterating your long term targets, which assume a 17 million Saar environment.
Is that still their base case assumption based on how you see the macro are unfolding here. Thanks.
Yeah, I'll start and then Dan can jump in if I Miss something please come back around.
You know, we see next year star improving on this year, we certainly don't see it at 17 million.
Maybe it's in the high Fourteens low fifteens next year, it's really too difficult to predict now, but I think our model implies by the end by the end of 'twenty four 'twenty five we're back to a 17 million Saar certainly we can be wrong on that assumption, but that's that's what we believe as we sit here today.
Alright that was it.
Did I Miss another piece of that I'm sorry.
I know that that wasn't just in general like on the ground. What are you seeing today is there any pockets of weakness in terms of demand.
I think you mentioned in prepared remarks that no.
The financial conditions still remain pretty healthy for the consumer but just curious if.
You have some sort of a read on like how the underlying demand is changing you know given just the recent ER.
Inflation trends gas prices et cetera.
Yeah, I would say parts and service remained strong the traffic is still great people are still spending the same dollars and greater dollars quarter over quarter and in the service Department. So I think that's great I think the new car business is solid, but it's really hard to understand how strong. It is because you have such a low day supply.
You know generally speaking, we're still pre selling half the cars that are coming in.
So you know there's a lot of these cars arent getting to hit the ground it varies a little bit by brand, but generally that's where it is overall I would say the used car market is is is softening from what it was in the last six months, but greater than its been in the last few years.
It's been bouncing around a little bit the last six to eight weeks as it relates to valuations and what I would say people were impulsively buying six months ago, they're probably putting a little bit more thought and care into the selection and the pricing right. Now. So I think we're still trying to find their footing and what the valuations are going to be.
For the rest of the year, it's still healthy it's still strong.
On the used business, but you know if all of the segments I would say that's the one where it's trying to find.
It's floating.
To move forward.
Understood makes sense, thanks, a lot.
Thank you.
As a reminder, please press star one to ask them.
The next question today comes from David Whiston of Morningstar.
Thanks. Good morning, you talked about 90% of equivalent customers, who want a lung can get one just curious about that 10% that gets rejected is that purely.
Our credit score issue or are there other variables.
Yeah. So.
It's a combination you got you've got a you know you have some negative equity.
Concerns or opportunities some in some cases it might be a credit score, but keep in mind I stated in the script that.
The average credit score on Cleveland is a 700, which is higher than what our what our stores are so were traditionally in the vast majority of the credit that we see coming through Cleveland is a it's a very good credit customer, which allows us to offer the a 90% approval rating that I mentioned and Dave just to follow up on.
That our previous tool is what we refer to as a super lead generator. It took yourself to a certain point, but you couldn't fully transact online we saw a lot more subprime and lower credit scores on that tool with this fully transactional tool we've been impressed with the much higher credit scores and the consistency of it in.
Our belief is because the consumer now understands it's a fully transactional tool customers with strong credit aren't worried about the financing they're worried about their time.
So that's why we think we're seeing better credit.
But traditionally digital tools are not you never get 100% of the people finance is always unique circumstances. There is some people you just can't help out but we have also launched some lenders into our loan marketplace that are considered subprime lenders. So we think 90% is really strong we think an average credit score of over 700 is great.
But there's always room for improvement.
Okay and on the F&I two point out of bundle I looked at the slides.
I guess I'm not totally clear can you still do Ala Carte, if you want to or is that not even an option I guess a subset of that is you've got the.
Bundled packages, but can you customize within this within one package and saying well on these five things offered I only want three of them.
Yeah. This is Dan again, absolutely.
Keep in mind from day, one when we build this when we built <unk> we did it all based on what is in the best and.
And the best for the consumer so 100% you can go in there and youre going to be able to build a la carte you can when you have a bundle if you wanted to lead.
<unk> or build it the way that you want it you by all means you can definitely do it all we're doing is just providing some options, but at the end of the day the consumer can decide what he or she wants from the comfort of their home other office.
Okay and.
A Q3 event, how how bad is the St. Louis flooding for your stores.
Yeah, it's we've been lucky it it hasn't caused any physical damage.
It's horrible what's gone on in the city and certainly people have been harm, but our physical locations are fine.
Okay. Thanks, guys.
Thank you.
Our next question comes from Ryan <unk> of Craig Hallum Capital Group.
Good morning.
Just wanted to follow up on on the F&I interface change and so it looks like F&I was down quarter over quarter versus Q1, I guess can you talk to that decrease and then after the interface change had anything to do with that.
Uh huh.
I think when you say F&I was down you're specifically talking about click Lane F&I.
That is correct.
It was 21.
22 91.
Yes, Yeah, just want to make sure so.
So the interface the second iteration of F&I is being rolled out as we speak so he's going to start being consumers taking advantage of it I believe in and a couple of weeks if I'm not mistaken. So the the second iteration did not have any negative impact on that number at all.
The other thing I would mention.
With the light inventories generally speaking our F&I dollars are higher on new vehicles and used vehicles.
Both in product sales in reserve because you know that the cost of the vehicle is higher.
So depending upon the balance and what youre selling the F&I number moves around a little bit.
More domestic trucks are going to have higher P V ours than lower import cars. So I think it's really just about what transaction that line I think it will always move around a little bit depending upon the spread of the brand mix and how much of it is new to used but again and I don't know if our peers recording any numbers, but to be up.
'twenty 100, a car in F&I with a consumer self selecting.
Compared to 2400 without selling the product face to face.
We think that's really strong.
Yep.
And then just one on new vehicles. So unit same store sales down 31%, obviously challenged inventory situation across our you know everyone, but any idea how you're doing relative to competitors in your specific markets talking market share.
Yeah, So it's frustrating.
Because you have to look at each brand in each market definitely I mean, some of our stores at the end of the month have a zero day supply of cars and Theres still losing a little bit of market share because someone might have a few more vehicles and to sell or the timing of when cars get reported.
We're selling everything we have we.
We got hit hardest on the import it just is what it is in the quarter as far as deliveries and whats going on with the chip shortage, we got really hard to get hit hard with the domestic trucks as well.
So it's really spotty by brand, but based upon our brand mix I think the reality of it is that really low number is simply a reflection of what we were allocated we're turning what we're getting.
That 13 days supply I would tell you is high.
Because you know we had so many cars delivered at the end of the quarter. We just couldn't report and transact in time to close the counter revenue for the quarter.
So I would say we were several days below that number in actuality.
Great. Thanks, Good luck.
Thank you.
Our next question is from Bret Jordan of Jefferies.
Hey, good morning, guys.
I'm wondering if you looked at the correlation of F&I to P. D are our customers spending more because the transaction values higher or if transaction values decline with supply rebound, where they have more available sort of from a monthly spend standpoint.
Yeah, I would say.
And I think Dan touched on it earlier.
We love to buy things, we hate to be sold things and I think when we're buying new vehicles with all the new technology.
People want to make sure that their asset as protected as best as possible. So they're really searching out for products to make sure that they do that the used car customer vary slightly depending upon if it's a used car customer buying a $50000 preowned luxury car or a $15000 car.
Those folks tend to be slightly more conservative.
Slightly less focused on enhancing the security of the vehicle and buying products.
Been fairly consistent for the last couple of decades, regardless of its an online transaction or an in store transaction I would say is generally speaking every year the cost of sales keeps going up I would think based upon that ebb and flow Youll continue to see F&I numbers grow.
Not at this staggering rate that we're at now, but I think you'll see a continually grow.
I had a question on used I guess, obviously, it's been a challenging market to be profitable just given the cost of inventory are you seeing much change in the market either either contraction of the independent used only dealers or even some of the bigger used all the dealers that are answered.
Do you see this environment sort of as you're driving any attrition or does everybody sort of get through this in one piece.
Yeah. So I don't know how much awareness I have had a full market to answer that but my impression is the independent dealers.
A much harder road than the franchise dealer as far as securing inventory to sell I think they're feeling far more squeezed than we are.
And you know we have the benefit of offering CPO programs and Dan talked about all the different sources that we have for used vehicles.
Again, I think our numbers were pretty good in the quarter, I think where it wasn't about chasing volume as much as it was making sure that we're getting a good return we look at the used car. If it's a cost of sale of 20000, we're making a 20000 dollar investment in what's a fair return on that and during the quarter, we had some movement in.
<unk> from the markets shift and go up and down so that affected our PV or in the quarter as well. So there's always more opportunity to grow it is always more opportunity for more volume, but we see going forward the used car business.
Should get better for us over time, and when I say that I don't necessarily mean in Q3 or Q4, but as you start to get into next year and products become more available.
And you know rental car company fleets have to turn cars over there'll be more access to inventory for us to move.
Alright, thank you.
Thank you.
This concludes today's discussion.
Well I'm sorry go ahead.
Oh no. Please go ahead.
No was there another question.
No no.
Okay. This concludes today's discussion we appreciate your participation and looking forward to speaking with you next quarter have a great day.
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