Asbury Automotive Group (ABG) carries a deeply negative liquidation value, consistent with the MFFAIS CLV of approximately -$3.4B and OLV of approximately -$826M. The balance sheet as of March 31, 2026 shows total assets of $11.3B against total liabilities implicitly of ~$7.4B (total equity $3.9B per XBRL), but under liquidation haircuts the asset side collapses severely. The two dominant asset lines—goodwill ($2.3B) and indefinite-lived franchise rights ($2.1B)—receive zero recovery under the liquidation lens, eliminating approximately $4.4B of book asset value outright. PP&E of $3.1B recovers at 50-70%, yielding approximately $1.6-2.2B. Inventory of $2.1B recovers at 60%, yielding approximately $1.3B. AR of $251M recovers at 90-95%, yielding approximately $225-238M. Cash of $25M recovers at 100%. Total liquidation asset recovery is roughly $3.3-3.8B before intangible zeros, contrasted with face-value liabilities of approximately $7.4B (current liabilities $3.2B plus long-term debt and leases ~$3.1B non-current plus other non-current ~$0.3B), confirming deeply negative equity recovery. The TCA insurance subsidiary holds ~$416M in available-for-sale debt securities (TCA non-guarantor) which carry near-par recovery but are ring-fenced from senior note guarantors. The contract-with-customer liability (deferred revenue) of $841M—$243M current, $598M non-current—does not extinguish on windup and adds to effective liability stack. Operating lease liabilities of $240M aggregate ($26M current, $214M non-current) similarly survive liquidation at face. Q1 2026 saw significant portfolio reshaping: 14 franchises (10 locations) divested for $362M aggregate, generating a $126M pre-tax gain. This reduced the PP&E and franchise rights bases while injecting cash used partly to fund $147M in share repurchases. Goodwill was unchanged at $2.3B, suggesting divestiture gains were realized at or above book on franchise intangibles. Herb Chambers integration (acquired July 2025) continues to add to the non-guarantor-scoped asset base. Total variable-rate debt exposure stands at approximately $1.97B per MD&A; a new interest rate swap ($250M notional, February 2026, maturing July 2030) was added this quarter, marginally reducing net variable exposure. Prior filing (10-K, December 31, 2025) showed non-current assets of $7.6B for guarantor subsidiaries; current filing shows $7.7B, consistent with PP&E additions offsetting divested assets. The filing discusses TCA deferred acquisition costs and contract liability buildup in MD&A but does not separately tag deferred policy acquisition costs in XBRL—those amounts are embedded in OtherAssetsCurrent and OtherAssetsNoncurrent.
▼ Community Notes