AutoNation Reports First Quarter 2024 Results

Rhea-AI Summary

AutoNation, Inc. (NYSE: AN) reported first quarter 2024 EPS of $4.49, compared to $6.07 a year ago. Revenue was $6.5 billion, up $87 million from a year ago. After-Sales gross profit increased by 9% to $556 million. The company repurchased 1.6 million shares of common stock and authorized the repurchase of up to an additional $1.0 billion. The operational summary shows a 1% increase in revenue but a decrease in gross profit and net income. New Vehicle retail unit sales increased by 7% and Used Vehicle retail unit sales by 2%.

Positive

• AutoNation reported robust growth in New and Used Vehicle sales, maintaining an attractive position in Customer Financial Services, and an 8% revenue growth in After-Sales business.
• The company's operating cash generation was exceptional, and the Board authorized the repurchase of up to an additional $1.0 billion of common stock.
• Revenue for Q1 2024 was $6.5 billion, up $87 million from a year ago, with continued growth in After-Sales and increased New Vehicle revenue.
• After-Sales revenue increased by 8% to $1.2 billion, and Customer Financial Services revenue increased to $335 million.
• However, gross profit decreased to $1.2 billion, with reductions in New Vehicle and Used Vehicle gross profits.
• Segment results showed decreases in Domestic, Import, and Premium Luxury segment incomes compared to the year-ago period.
• AutoNation had $1.7 billion of liquidity as of March 31, 2024, with $1.6 billion of availability under its revolving credit facility.
• The company had $3.9 billion of non-vehicle debt outstanding.
• The conference call for the first quarter results can be accessed via telephone or on AutoNation's investor relations website.

Negative

• Gross profit decreased by $89 million from a year ago.
• Operating income and adjusted operating income decreased by 23% and 22% respectively compared to the year-ago period.
• Net income decreased by 34% from a year ago.
• Diluted EPS decreased by 26% from a year ago.
• New Vehicle and Used Vehicle gross profits decreased, reflecting lower gross profit per vehicle retailed.
• Segment incomes for Domestic, Import, and Premium Luxury segments all decreased compared to the year-ago period.
• SG&A as a percentage of gross profit was slightly higher than recent periods.
• The company made capital expenditures of $94 million during the first quarter of 2024.

Insights

Financial Analyst

AutoNation's Q1 2024 financial results reflect both positive and negative trends. The growth in New Vehicle unit sales and After-Sales gross profit shows adaptability in a competitive market. However, the declining EPS from $6.07 to $4.49 indicates profitability concerns. The aggressive share repurchase program, authorizing an additional $1.0 billion of common stock, is a confidence signal from management about future growth and a commitment to returning value to shareholders. On the cost side, the slight increase in SG&A expenses as a percentage of gross profit is a point investors should monitor, as it could signal rising costs that are not being offset by revenue growth. The capital expenditures made reflect ongoing investments, which could bear fruit in terms of future sales and service capacity. A cautious investor should also consider the decreased gross profit in both New and Used Vehicle sales, which could be indicative of pricing pressures or increased competition.

Market Research Analyst

It is clear AutoNation is experiencing a mixed market response. The increase in unit sales for both new and used vehicles indicates a strong demand and an effective sales strategy, despite the overall automotive industry facing headwinds such as economic uncertainty and potential supply chain disruptions. The rise in After-Sales revenue is particularly notable, as it suggests customer retention and the successful monetization of the service segment. From a market perspective, AutoNation's performance in different segments (Domestic, Import, Premium Luxury) reflects broader consumer trends, with each segment responding differently to the current market conditions. The company's liquidity and leverage position also offer insight into its financial health, which investors can interpret as either a solid foundation for future investments or a warning sign of over-leverage, depending on broader economic indicators and the company's ability to generate consistent cash flow.

• Q1 2024 EPS $4.49, compared to $6.07 a year ago
• Q1 2024 Revenue $6.5 billion, compared to $6.4 billion a year ago
• Q1 2024 After-Sales gross profit increased 9% from a year ago to a record $556 million
• Year-to-date through April 24, 2024, repurchased 1.6 million shares of common stock
• Board of Directors has authorized the repurchase of up to an additional $1.0 billion of common stock

FORT LAUDERDALE, Fla., April 26, 2024 /PRNewswire/ -- AutoNation, Inc. (NYSE: AN) today reported first quarter 2024 EPS of $4.49, compared to $6.07 a year ago. First quarter 2024 revenue was $6.5 billion, compared to $6.4 billion a year ago, led by 7% growth in New Vehicle unit volume and 8% After-Sales growth.

"Our first quarter performance once again reflected the strength of our business model and the outstanding execution by our associates. We delivered robust growth in New and Used Vehicle sales, maintained a highly attractive position in our Customer Financial Services business, and posted 8% revenue growth in our After-Sales business. Our operating cash generation was exceptional, and we were thoughtful in our capital allocation decisions," said Mike Manley, AutoNation Chief Executive Officer. "We remain focused on maximizing shareholder returns and I am pleased to announce that our Board authorized the repurchase of up to an additional $1.0 billion of common stock," Manley added.

Operational Summary
First quarter 2024 compared to the year-ago period:

Selected Financial Data
($ in millions, except per share data)
		Three Months Ended March 31,
		2024		2023		YoY
Revenue		$             6,485.7		$             6,398.7		1 %
Gross Profit		$             1,197.9		$             1,286.4		-7 %
Operating Income		$                340.3		$                443.3		-23 %
Adjusted Operating Income*		$                347.6		$                448.5		-22 %
Net Income		$                190.1		$                288.7		-34 %
Diluted EPS		$                  4.49		$                  6.07		-26 %
New Vehicle Retail Unit Sales		58,863		55,065		7 %
Used Vehicle Retail Unit Sales		69,121		67,539		2 %

*Reconciliations of non-GAAP financial measures are included in the attached financial tables.

• Revenue - totaled $6.5 billion, up $87 million compared to the year-ago period, as continued growth in After-Sales and increased New Vehicle revenue more than offset lower Used Vehicle revenue.
  • New Vehicle Revenue – increased $47 million or 2% to $3.0 billion.
  • Used Vehicle Revenue – decreased $37 million or 2% to $2.0 billion.
  • After-Sales Revenue –increased $83 million or 8% to $1.2 billion.
  • Customer Financial Services Revenue – increased to $335 million, compared to $332 million a year ago
• Gross Profit - totaled $1.2 billion, down $89 million from $1.3 billion a year ago.
  • New Vehicle Gross Profit - decreased $91 million reflecting gross profit per vehicle retailed of $3,328 compared to $5,210 a year ago, partially offset by a 7% increase in unit sales.
  • Used Vehicle Gross Profit - decreased $43 million reflecting gross profit per vehicle retailed of $1,473 compared to $2,117 a year ago, partially offset by a 2% increase in unit sales.
  • After-Sales Gross Profit - increased $45 million, or 9% from a year ago to $556 million.
  • Customer Financial Services Gross Profit - totaled $335 million, reflecting gross profit per vehicle retailed of $2,615.
• SG&A as a Percentage of Gross Profit – was 66.2%, or 65.6% on an adjusted basis, slightly higher than recent periods reflecting acquisitions and growth investments.

Segment Results
Segment results⁽¹⁾ for the first quarter of 2024 were as follows:

• Domestic Segment Income⁽²⁾ – was $75 million compared to the year-ago segment income of $119 million, a decrease of 37%. Revenue of $1.8 billion was down 4%.
• Import Segment Income⁽²⁾ – was $129 million compared to the year-ago segment income of $160 million, a decrease of 20%. Revenue of $2.0 billion was up 11%.
• Premium Luxury Segment Income⁽²⁾ – was $172 million compared to the year-ago segment income of $227 million, a decrease of 24%. Revenue of $2.4 billion was down 3%.

Capital Allocation, Liquidity, and Leverage
During the quarter, AutoNation repurchased 0.2 million shares of common stock for an aggregate purchase price of $39 million. Year-to-date through April 24, 2024, AutoNation had repurchased 1.6 million shares for an aggregate purchase price of $250 million. AutoNation today announced that the Board of Directors authorized the repurchase of up to an additional $1.0 billion of common stock under its share repurchase program and has approximately $1.1 billion under the program. During the first quarter of 2024 the Company made capital expenditures of $94 million.

As of March 31, 2024, AutoNation had $1.7 billion of liquidity, including $60 million in cash and $1.6 billion of availability under its revolving credit facility, net of commercial paper borrowings. The Company's covenant leverage ratio was 2.25x at quarter end and the Company had $3.9 billion of non-vehicle debt outstanding.

The first quarter conference call may be accessed by telephone at 833-470-1428 (Conference ID:758921) at 9:00 a.m. Eastern Time today or on AutoNation's investor relations website at investors.autonation.com.

The webcast will also be available on AutoNation's website following the call under "Events & Presentations." A playback of the conference call will be available after 12:00 p.m. Eastern Time on April 26, 2024, through May 17, 2024, by calling 866-813-9403 (Conference ID: 457858). Additional information regarding AutoNation's results can be found in the Investor Presentation available at investors.autonation.com.

(1)	AutoNation has three reportable segments: Domestic, Import, and Premium Luxury. The Domestic segment is comprised of stores that sell vehicles manufactured by Ford, General Motors, and Stellantis; the Import segment is comprised of stores that sell vehicles manufactured primarily by Toyota, Honda, Hyundai, Subaru, and Nissan; and the Premium Luxury segment is comprised of stores that sell vehicles manufactured primarily by Mercedes-Benz, BMW, Lexus, Audi, and Jaguar Land Rover.
(2)	Segment income represents income for each of AutoNation's reportable segments and is defined as operating income less floorplan interest expense.

About AutoNation, Inc.
AutoNation is one of the largest automotive retailers in the United States, offering innovative products, exceptional services, and comprehensive solutions, empowering our customers to make the best decisions for their needs. With a network of dealerships nationwide strengthened by a recognized brand, we offer a wide variety of new and used vehicles, customer financing, parts, and provide expert maintenance and repair services. Through our DRV PNK initiative, we have raised over $40 million for cancer-related causes, demonstrating our commitment to making a positive difference in the lives of our Associates, Customers, and the communities we serve.

Please visit www.autonation.com, investors.autonation.com, and www.x.com/autonation, where AutoNation discloses additional information about the Company, its business, and its results of operations. Please also visit www.autonationdrive.com, AutoNation's automotive blog, for information regarding the AutoNation community, the automotive industry, and current automotive news and trends.

FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Words such as "anticipates," "expects," "intends," "goals," "targets," "projects," "plans," "believes," "continues," "may," "will," "could," and variations of such words and similar expressions are intended to identify such forward-looking statements. Statements regarding our strategic initiatives, partnerships, and investments, including AutoNation USA, AutoNation Finance, and AutoNation Mobile Service, statements regarding our investments in digital and online capabilities and mobility solutions, statements regarding our expectations for the future performance of our business and the automotive retail industry, and other statements that describe our objectives, goals, or plans, are forward-looking statements. Our forward-looking statements reflect our current expectations concerning future results and events, and they involve known and unknown risks, uncertainties, and other factors that are difficult to predict and may cause our actual results, performance, or achievements to be materially different from any future results, performance, and achievements expressed or implied by these statements. These risks, uncertainties, and other factors include, among others: our ability to implement successfully our strategic acquisitions, initiatives, partnerships, and investments, including our investments in digital and online capabilities and mobility solutions; our ability to identify, acquire, and build out suitable locations in a timely manner; our ability to maintain and enhance our retail brands and reputation and to attract consumers to our own digital channels; our ability to acquire and integrate successfully new acquisitions; restrictions imposed by vehicle manufacturers and our ability to obtain manufacturer approval for franchise acquisitions; economic conditions, including changes in unemployment, interest, and/or inflation rates, consumer demand, fuel prices, and tariffs; supply chain disruptions and inventory availability; new and used vehicle margins; our ability to attain planned sales volumes within our expected time frames; our ability to successfully implement and maintain expense controls; the successful resolution of labor strikes impacting domestic vehicle manufacturers; the success and financial viability and the incentive and marketing programs of vehicle manufacturers and distributors with which we hold franchises; natural disasters and other adverse weather events; the resolution of legal and administrative proceedings; regulatory factors affecting our business, including fuel economy requirements; the announcement of safety recalls; factors affecting our goodwill and other intangible asset impairment testing; and other factors described in our news releases and filings made under the securities laws, including, among others, our Annual Reports on Form 10-K, our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. Forward-looking statements contained in this news release speak only as of the date of this news release, and we undertake no obligation to update these forward-looking statements to reflect subsequent events or circumstances.

AUTONATION, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data)
		Three Months Ended March 31,
		2024		2023
Revenue:
New vehicle		$                       2,979.3		$                       2,931.9
Used vehicle		1,996.1		2,032.6
Parts and service		1,172.4		1,089.8
Finance and insurance, net		334.7		332.4
Other		3.2		12.0
Total revenue		6,485.7		6,398.7
Cost of sales:
New vehicle		2,783.4		2,645.0
Used vehicle		1,884.6		1,878.2
Parts and service		616.6		578.7
Other		3.2		10.4
Total cost of sales		5,287.8		5,112.3
Gross profit		1,197.9		1,286.4
Selling, general, and administrative expenses		793.1		782.7
Depreciation and amortization		58.3		52.8
Other expense, net(1)		6.2		7.6
Operating income		340.3		443.3
Non-operating income (expense) items:
Floorplan interest expense		(49.4)		(27.1)
Other interest expense		(44.6)		(41.1)
Other income, net(2)		7.0		5.2
Income from continuing operations before income taxes		253.3		380.3
Income tax provision		63.2		92.5
Net income from continuing operations		190.1		287.8
Income from discontinued operations, net of income taxes		—		0.9
Net income		$                          190.1		$                          288.7
Diluted earnings per share(3):
Continuing operations		$                            4.49		$                            6.05
Discontinued operations		$                               —		$                            0.02
Net income		$                            4.49		$                            6.07
Weighted average common shares outstanding		42.3		47.6
Common shares outstanding, net of treasury stock, at period end		41.6		45.6

(1)	Includes results of our finance company, including expected credit loss expense, as well as asset impairments and gains on property divestitures.
(2)	Includes gains related to changes in the cash surrender value of corporate-owned life insurance for deferred compensation plan participants, net of losses on minority equity investments.
(3)	Earnings per share amounts are calculated discretely and therefore may not add up to the total due to rounding.

 

AUTONATION, INC. UNAUDITED SUPPLEMENTARY DATA ($ in millions, except per vehicle data)
Operating Highlights		Three Months Ended March 31,
		2024		2023		$ Variance		% Variance
Revenue:
New vehicle		$          2,979.3		$          2,931.9		$              47.4		1.6
Retail used vehicle		1,833.8		1,884.1		(50.3)		(2.7)
Wholesale		162.3		148.5		13.8		9.3
Used vehicle		1,996.1		2,032.6		(36.5)		(1.8)
Finance and insurance, net		334.7		332.4		2.3		0.7
Total variable operations		5,310.1		5,296.9		13.2		0.2
Parts and service		1,172.4		1,089.8		82.6		7.6
Other		3.2		12.0		(8.8)
Total revenue		$          6,485.7		$          6,398.7		$              87.0		1.4
Gross profit:
New vehicle		$             195.9		$             286.9		$             (91.0)		(31.7)
Retail used vehicle		101.8		143.0		(41.2)		(28.8)
Wholesale		9.7		11.4		(1.7)
Used vehicle		111.5		154.4		(42.9)		(27.8)
Finance and insurance		334.7		332.4		2.3		0.7
Total variable operations		642.1		773.7		(131.6)		(17.0)
Parts and service		555.8		511.1		44.7		8.7
Other		—		1.6		(1.6)
Total gross profit		1,197.9		1,286.4		(88.5)		(6.9)
Selling, general, and administrative expenses		793.1		782.7		(10.4)		(1.3)
Depreciation and amortization		58.3		52.8		(5.5)
Other expense, net		6.2		7.6		1.4
Operating income		340.3		443.3		(103.0)		(23.2)
Non-operating income (expense) items:
Floorplan interest expense		(49.4)		(27.1)		(22.3)
Other interest expense		(44.6)		(41.1)		(3.5)
Other income, net		7.0		5.2		1.8
Income from continuing operations before income taxes		$             253.3		$             380.3		$           (127.0)		(33.4)
Retail vehicle unit sales:
New		58,863		55,065		3,798		6.9
Used		69,121		67,539		1,582		2.3
		127,984		122,604		5,380		4.4
Revenue per vehicle retailed:
New		$           50,614		$           53,244		$           (2,630)		(4.9)
Used		$           26,530		$           27,896		$           (1,366)		(4.9)
Gross profit per vehicle retailed:
New		$             3,328		$             5,210		$           (1,882)		(36.1)
Used		$             1,473		$             2,117		$              (644)		(30.4)
Finance and insurance		$             2,615		$             2,711		$                (96)		(3.5)
Total variable operations(1)		$             4,941		$             6,218		$           (1,277)		(20.5)

(1)	Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle, retail used vehicle, and finance and insurance gross profit by total retail vehicle unit sales.

 

Operating Percentages		Three Months Ended March 31,
		2024 ( %)		2023 ( %)
Revenue mix percentages:
New vehicle		45.9		45.8
Used vehicle		30.8		31.8
Parts and service		18.1		17.0
Finance and insurance, net		5.2		5.2
Other		—		0.2
		100.0		100.0
Gross profit mix percentages:
New vehicle		16.4		22.3
Used vehicle		9.3		12.0
Parts and service		46.4		39.7
Finance and insurance		27.9		25.8
Other		—		0.2
		100.0		100.0
Operating items as a percentage of revenue:
Gross profit:
New vehicle		6.6		9.8
Used vehicle - retail		5.6		7.6
Parts and service		47.4		46.9
Total		18.5		20.1
Selling, general, and administrative expenses		12.2		12.2
Operating income		5.2		6.9
Operating items as a percentage of total gross profit:
Selling, general, and administrative expenses		66.2		60.8
Operating income		28.4		34.5

 

AUTONATION, INC. UNAUDITED SUPPLEMENTARY DATA ($ in millions)
Segment Operating Highlights		Three Months Ended March 31,
		2024		2023		$ Variance		% Variance
Revenue:
Domestic		$          1,756.7		$          1,831.1		$             (74.4)		(4.1)
Import		1,979.5		1,789.3		190.2		10.6
Premium luxury		2,414.9		2,484.9		(70.0)		(2.8)
Total		6,151.1		6,105.3		45.8		0.8
Corporate and other		334.6		293.4		41.2		14.0
Total consolidated revenue		$          6,485.7		$          6,398.7		$              87.0		1.4
Segment income*:
Domestic		$              75.2		$             118.5		$             (43.3)		(36.5)
Import		128.8		160.4		(31.6)		(19.7)
Premium luxury		171.6		226.8		(55.2)		(24.3)
Total		375.6		505.7		(130.1)		(25.7)
Corporate and other		(84.7)		(89.5)		4.8
Add: Floorplan interest expense		49.4		27.1		22.3
Operating income		$             340.3		$             443.3		$           (103.0)		(23.2)
* Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense.
Retail new vehicle unit sales:
Domestic		15,902		15,849		53		0.3
Import		27,568		23,098		4,470		19.4
Premium luxury		15,393		16,118		(725)		(4.5)
		58,863		55,065		3,798		6.9
Retail used vehicle unit sales:
Domestic		19,763		21,203		(1,440)		(6.8)
Import		23,765		22,063		1,702		7.7
Premium luxury		18,963		18,768		195		1.0
Other		6,630		5,505		1,125
		69,121		67,539		1,582		2.3
Brand Mix - Retail New Vehicle Units Sold		Three Months Ended
		March 31,
		2024 ( %)		2023 ( %)
Domestic:
Ford, Lincoln		10.7		11.5
Chevrolet, Buick, Cadillac, GMC		10.4		10.3
Chrysler, Dodge, Jeep, Ram		5.9		7.0
Domestic total		27.0		28.8
Import:
Toyota		21.5		17.9
Honda		13.2		12.3
Nissan		2.0		2.2
Hyundai		3.4		3.3
Subaru		3.8		3.2
Other Import		2.9		3.0
Import total		46.8		41.9
Premium Luxury:
Mercedes-Benz		8.5		9.6
BMW		8.4		9.7
Lexus		3.7		3.2
Audi		2.2		2.6
Jaguar Land Rover		2.1		2.1
Other Premium Luxury		1.3		2.1
Premium Luxury total		26.2		29.3
		100.0		100.0

 

AUTONATION, INC. UNAUDITED SUPPLEMENTARY DATA, Continued ($ in millions)
Capital Expenditures / Stock Repurchases		Three Months Ended March 31,
		2024		2023
Capital expenditures		$                  93.7		$                  95.3
Cash paid for acquisitions, net of cash acquired		$                     —		$                191.0
Proceeds from exercises of stock options		$                    0.1		$                    1.3
Stock repurchases:
Aggregate purchase price (1)		$                  38.7		$                305.0
Shares repurchased (in millions)		0.2		2.4

 

Floorplan Assistance and Expense		Three Months Ended March 31,
		2024		2023		Variance
Floorplan assistance earned (included in cost of sales)		$                  31.9		$                  28.3		$                    3.6
New vehicle floorplan interest expense		(46.6)		(24.4)		(22.2)
Net new vehicle inventory carrying benefit (expense)		$                (14.7)		$                    3.9		$                (18.6)

 

Balance Sheet and Other Highlights		March 31, 2024		December 31, 2023		March 31, 2023
Cash and cash equivalents		$                    60.3		$                    60.8		$                    58.3
Inventory		$               3,002.7		$               3,033.4		$               2,196.2
Floorplan notes payable		$               3,270.9		$               3,382.4		$               2,185.7
Non-recourse debt		$                  345.2		$                  258.4		$                  283.4
Non-vehicle debt		$               3,873.8		$               4,030.3		$               3,882.4
Equity		$               2,359.8		$               2,211.4		$               2,020.3
New days supply (industry standard of selling days)		44 days		36 days		25 days
Used days supply (trailing calendar month days)		31 days		39 days		29 days

 

Key Credit Agreement Covenant Compliance Calculations (2)
Leverage ratio		2.25x
Covenant	less than or equal to	3.75x
Interest coverage ratio		5.30x
Covenant	greater than or equal to	3.00x

(1)	Excludes excise taxes imposed under Inflation Reduction Act.
(2)	Calculated in accordance with our credit agreement as filed with our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.

 

AUTONATION, INC. UNAUDITED SUPPLEMENTARY DATA, Continued ($ in millions, except per share data)
Comparable Basis Reconciliations(1)
		Three Months Ended March 31,
		Operating Income				Income from Continuing Operations Before Income Taxes				Income Tax Provision(2)				Effective Tax Rate				Net Income				Diluted Earnings Per Share(3)
		2024		2023		2024		2023		2024		2023		2024		2023		2024		2023		2024		2023
From continuing operations, as reported		$      340.3		$      443.3		$      253.3		$      380.3		$        63.2		$        92.5		25.0 %		24.3 %		$      190.1		$      287.8
Discontinued operations, net of income taxes																		—		0.9
As reported																		$      190.1		$      288.7		$        4.49		$        6.07
Increase (decrease) in compensation expense related to market valuation changes in deferred compensation(4)		7.3		5.2		—		—		—		—						—		—		$           —		$           —
Adjusted		$      347.6		$      448.5		$      253.3		$      380.3		$        63.2		$        92.5		25.0 %		24.3 %		$      190.1		$      288.7		$        4.49		$        6.07
		Three Months Ended March 31,
		SG&A				SG&A as a Percentage of Gross Profit (%)
		2024		2023		2024		2023
As reported		$      793.1		$      782.7		66.2		60.8
Excluding increase (decrease) in compensation expense related to market valuation changes in deferred compensation		7.3		5.2
Adjusted		$      785.8		$      777.5		65.6		60.4

(1)	Please refer to the "Non-GAAP Financial Measures" section of the Press Release.
(2)	Tax expense is determined based on the amount of additional taxes or tax benefits associated with each individual item.
(3)	Diluted earnings per share amounts are calculated discretely and therefore may not add up to the total due to rounding.
(4)	Increases and decreases in deferred compensation obligations, which are recorded in SG&A, are substantially offset by corresponding gains and losses, respectively, related to changes in the cash surrender value of corporate-owned life insurance ("COLI") for deferred compensation plan participants as a result of changes in market performance of the underlying investments; therefore, net impact to net income and earnings per share is de minimis. Gains and losses related to the COLI are recorded in non-operating Other Income, Net.

 

AUTONATION, INC. UNAUDITED SAME STORE DATA ($ in millions, except per vehicle data)
Operating Highlights		Three Months Ended March 31,
		2024		2023		$ Variance		% Variance
Revenue:
New vehicle		$         2,937.2		$         2,927.5		$                9.7		0.3
Retail used vehicle		1,768.9		1,877.8		(108.9)		(5.8)
Wholesale		156.9		147.8		9.1		6.2
Used vehicle		1,925.8		2,025.6		(99.8)		(4.9)
Finance and insurance, net		326.1		331.8		(5.7)		(1.7)
Total variable operations		5,189.1		5,284.9		(95.8)		(1.8)
Parts and service		1,155.9		1,085.8		70.1		6.5
Other		3.2		12.2		(9.0)
Total revenue		$         6,348.2		$         6,382.9		$            (34.7)		(0.5)
Gross profit:
New vehicle		$            194.4		$            286.7		$            (92.3)		(32.2)
Retail used vehicle		99.1		142.8		(43.7)		(30.6)
Wholesale		9.6		11.4		(1.8)
Used vehicle		108.7		154.2		(45.5)		(29.5)
Finance and insurance		326.1		331.8		(5.7)		(1.7)
Total variable operations		629.2		772.7		(143.5)		(18.6)
Parts and service		547.3		509.0		38.3		7.5
Other		—		1.6		(1.6)
Total gross profit		$         1,176.5		$         1,283.3		$          (106.8)		(8.3)
Retail vehicle unit sales:
New		57,842		54,985		2,857		5.2
Used		66,163		67,318		(1,155)		(1.7)
		124,005		122,303		1,702		1.4
Revenue per vehicle retailed:
New		$          50,780		$          53,242		$          (2,462)		(4.6)
Used		$          26,735		$          27,894		$          (1,159)		(4.2)
Gross profit per vehicle retailed:
New		$            3,361		$            5,214		$          (1,853)		(35.5)
Used		$            1,498		$            2,121		$             (623)		(29.4)
Finance and insurance		$            2,630		$            2,713		$               (83)		(3.1)
Total variable operations(1)		$            4,997		$            6,225		$          (1,228)		(19.7)

(1)	Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle, retail used vehicle, and finance and insurance gross profit by total retail vehicle unit sales.

 

Operating Percentages		Three Months Ended March 31,
		2024 ( %)		2023 ( %)
Revenue mix percentages:
New vehicle		46.3		45.9
Used vehicle		30.3		31.7
Parts and service		18.2		17.0
Finance and insurance, net		5.1		5.2
Other		0.1		0.2
		100.0		100.0
Gross profit mix percentages:
New vehicle		16.5		22.3
Used vehicle		9.2		12.0
Parts and service		46.5		39.7
Finance and insurance		27.7		25.9
Other		0.1		0.1
		100.0		100.0
Operating items as a percentage of revenue:
Gross profit:
New vehicle		6.6		9.8
Used vehicle - retail		5.6		7.6
Parts and service		47.3		46.9
Total		18.5		20.1

 

 

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SOURCE AutoNation, Inc.

FAQ

What was AutoNation's EPS for the first quarter of 2024?

AutoNation reported an EPS of $4.49 for the first quarter of 2024, compared to $6.07 a year ago.

How much was AutoNation's revenue in the first quarter of 2024?

AutoNation's revenue for the first quarter of 2024 was $6.5 billion, up $87 million from a year ago.

What was the After-Sales gross profit in the first quarter of 2024?

The After-Sales gross profit in the first quarter of 2024 increased by 9% to $556 million.

How many shares of common stock did AutoNation repurchase year-to-date through April 24, 2024?

AutoNation repurchased 1.6 million shares of common stock year-to-date through April 24, 2024.

What did the Board of Directors authorize in terms of stock repurchase?

The Board of Directors authorized the repurchase of up to an additional $1.0 billion of common stock.

What was the percentage change in New Vehicle retail unit sales compared to the year-ago period?

New Vehicle retail unit sales increased by 7% compared to the year-ago period.

How much liquidity did AutoNation have as of March 31, 2024?

AutoNation had $1.7 billion of liquidity as of March 31, 2024, including $60 million in cash.

Where can the conference call for the first quarter results be accessed?

The conference call for the first quarter results can be accessed by telephone or on AutoNation's investor relations website.