Asbury Automotive Group Inc

Good day, everyone, and thank you for standing by. Welcome to the Asbury Automotive Group second quarter 2020 earnings call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mr. Matt Petone. Please go ahead, sir.

Thanks, operator, and good morning, everyone. Welcome to Asbury Automotive Group's second quarter 2020 earnings call. Today's call is being recorded and will be available for replay later today. The press release detailing Asbury's second quarter results was issued earlier this morning and is posted on our website at asburyauto.com. Participating with me today are David Holt, our President and Chief Executive Officer, PJ Guido, our Chief Financial Officer, and Dan Clara, our Senior Vice President of Operations. At the conclusion of our remarks, we will open the call up for questions, and I will be available later for any follow-up questions you might have. Before we begin, I 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, including those statements relating to the duration and contemplated impact of the COVID-19 pandemic on our business and financial performance, as well as the financial projections and expectations about our products, markets, and growth. All forward-looking statements are subject to significant uncertainties and actual results may differ materially from those suggested by the statement, including potential impacts from the COVID-19 pandemic on us, our industry, and our customers, suppliers, vendors, and business partners. For information regarding certain other risks that may cause actual results to differ, please see our filings with the SEC from time to time including our Form 10-K for the year ended December 2019, 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. As required by applicable SEC rules, we provide reconciliations of any such non-GAAP financial measures to the most directly comparable GAAP measures on our website. It is my pleasure to hand the call over to our CEO, David Holt. David? Thanks, Matt.

Good morning, everyone. Welcome to our second quarter earnings call. We achieved record second quarter results despite a volatile and challenging environment. In a quarter where SAR dropped 34% to $11.3 million, and Americans felt it at home due to the COVID-19 pandemic, we delivered record operating margin of 5.7%. Plus, through our cost control measures and the strength of our business model, we were able to achieve record low SG&A as a percentage of gross profit of 62.7%. and an adjusted EPS of $2.52, up 6% over the prior year. During the quarter, we saw our new and used volumes sequentially improve each week in May and June, with significantly higher profit per vehicle. We also saw our parks and service business rebound in June, and in the month flat in gross profit with the prior year. I am extremely proud of our teammates for stepping up our pickup and delivery business as well as their laser focus around keeping the dealership safe for our guests. Because of their hard work, we were able to deliver record results. In addition, the quarter proved the strength of the new vehicle franchise dealer model. With significantly lower volume due to the macro environment, we were able to flex our cost structure down, rationalize inventory, and improve margins to deliver these record results. Our strong performance is also the result of our pioneering omnichannel strategy we launched over four years ago. In the second quarter, 20% of our guests chose to complete their used vehicle purchase online. While we are pleased with these results, we are focused on further building and refining our omnichannel tools to enhance the guest experience. More to come later this year. We are also pleased that our business model and performance allowed us to navigate the current environment and reengage on the highly strategic Park Place acquisition under more flexible financing terms and more favorable pricing. We are on track to close the acquisition in late August. Looking forward, our main goals are to de-lever and continue to build out our omni-channel tools while working towards becoming the most gas-centric automotive retailer. Finally, I want to thank all of our teammates for their commitment during this pandemic. These results happen because of your passion and perseverance adapting to our new world. Thank you. I will now hand the call over to Dan to discuss our operating performance. Dan?