AutoNation Reports Sixth Consecutive All-Time Record Quarter
AutoNation (NYSE: AN) reported a record third quarter in 2021, achieving net income from continuing operations of $362 million, or $5.12 per share, up from $183 million, or $2.05 per share, in the prior year. Same-store revenue rose 18% to $6.4 billion, driven by strong demand for used vehicles, with a remarkable 53% year-over-year increase in same-store used vehicle revenue. AutoNation's gross profit also increased by 29% to $1.3 billion. The company announced plans for further expansion with new store openings and acquisitions projected to represent approximately $800 million in annual revenue.
- Record net income of $362 million, or $5.12 per share, a 98% increase year-over-year.
- Same-store used vehicle revenue surged by 53% year-over-year.
- Gross profit increased by 29% to $1.3 billion, indicating strong profitability.
- Plans to open multiple new stores and acquire businesses representing $800 million in revenue.
- Significant stock repurchase, totaling $879 million for the quarter.
- New vehicle sales decreased by 11% compared to the prior year, highlighting challenges in new inventory supply.
- Same-store new vehicle revenue remained flat year-over-year, signaling potential market constraints.
FORT LAUDERDALE, Fla., Oct. 21, 2021 /PRNewswire/ -- AutoNation, Inc. (NYSE: AN), America's largest and most recognized automotive retailer, today reported its sixth consecutive all-time record quarter. During the quarter, consumer demand continued to outpace supply, driven by consumer desire for personal transportation and ongoing manufacturing supply chain disruptions. New vehicle inventory remains at historically low levels, which combined with strong execution, has supported record profitability. With personal transportation remaining a top priority, many Customers are shifting from new to pre-owned vehicles. AutoNation continues to outperform the industry due to strong sourcing capabilities, with third quarter 2021 same store used vehicle revenue up
Mike Jackson, AutoNation's Chief Executive Officer, stated, "Demand continues to outpace supply for new vehicles. New vehicle sales are constrained by reduced production volume with low inventory levels. We expect this pent up demand to support sales for the foreseeable future."
Third quarter 2021 net income from continuing operations was
Operational Summary
Third quarter 2021 Operational Summary:
- Revenue – Same-store revenue was
$6.4 billion , an increase of18% compared to the year-ago period and an increase of18% compared to the third quarter of 2019. - New Vehicle Revenue – Same-store new vehicle revenue was flat compared to the prior year and decreased
3% compared to the third quarter of 2019. - Used Vehicle Revenue– Same-store used vehicle revenue increased
53% compared to the prior year and increased67% compared to the third quarter of 2019 - Gross Profit - Same-store gross profit totaled
$1.3 billion , an increase of29% compared to the year-ago period and an increase of45% compared to the third quarter of 2019. - New Vehicle Gross Profit - Same-store new vehicle gross profit per vehicle retailed was a record
$5,484 , up$2,949 or116% compared to the year-ago period and up238% compared to the third quarter of 2019. - Used Vehicle Gross Profit - Same-store used vehicle gross profit per vehicle retailed was
$2,104 , up$108 or5% compared to the year-ago period and up51% compared to the third quarter of 2019. - Customer Financial Services Gross Profit - Same-store Customer Financial Services gross profit per vehicle retailed was a record
$2,573 , up$417 or19% compared to the year-ago period and up32% compared to the third quarter of 2019. - Customer Care Gross Profit - Same-store Customer Care gross profit was
$424 million , an increase of8% compared to the year-ago period and an increase of6% compared to the third quarter of 2019. - SG&A as a Percentage of Gross Profit –SG&A as a percentage of gross profit was
56.9% , an improvement of 750 basis points compared to adjusted SG&A as a percentage of gross profit of64.4% in the prior year and a 1,550 basis improvement compared to the third quarter of 2019.
Selected GAAP Financial Data | |||||
($ in millions, except per share data) | |||||
Three Months Ended Sep 30, | |||||
2021 | 2020 | 2019 | YoY | 2021 | |
Revenue | $ 6,379.5 | $ 5,404.9 | $ 5,461.2 | ||
Gross Profit | $ 1,271.9 | $ 971.5 | $ 887.4 | ||
Operating Income | $ 503.3 | $ 271.7 | $ 193.5 | ||
Net Income from Continuing Operations | $ 361.7 | $ 182.6 | $ 100.0 | ||
Diluted EPS from Continuing Operations | $ 5.12 | $ 2.05 | $ 1.11 | ||
Same-store Revenue | $ 6,365.7 | $ 5,380.3 | $ 5,377.2 | ||
Same-store Gross Profit | $ 1,269.7 | $ 986.5 | $ 875.7 | ||
Same-store New Vehicle Retail Unit Sales | 58,276 | 65,838 | 73,049 | - | - |
Same- store Used Vehicle Retail Unit Sales | 77,073 | 64,393 | 62,513 | ||
Selected Non-GAAP Financial Data | |||||
($ in millions, except per share data) | |||||
Three Months Ended Sep 30, | |||||
2021 | 2020 | 2019 | YoY | 2021 | |
Adjusted Operating Income | $ 503.3 | $ 308.2 | $ 199.3 | ||
Adjusted Net Income from Continuing Operations | $ 361.7 | $ 211.8 | $ 106.3 | ||
Adjusted Diluted EPS from Continuing Operations | $ 5.12 | $ 2.38 | $ 1.18 | ||
Capital Allocation
The Company's seventh and eighth AutoNation USA stores opened in Denver as scheduled in September and October of 2021. AutoNation remains on track to open two additional AutoNation USA stores in the fourth quarter of 2021, including a store in Phoenix and entering a new market in Charlotte, North Carolina. The Company will open 12 additional new stores in 2022. These stores will continue to leverage the AutoNation brand, scale, and proven Customer-centric processes to capture a larger share of the used vehicle market.
AutoNation today announced it has signed an agreement to acquire Priority 1 Automotive Group, representing approximately
During the third quarter of 2021, AutoNation repurchased 7.9 million shares of common stock, or almost
Liquidity and Leverage
As of September 30, 2021, AutoNation had
Segment Results
Segment results(1) for the third quarter 2021 were as follows:
Third Quarter 2021 Segment Results
- Domestic - Domestic segment income(2) was
$149 million compared to year-ago segment income of$112 million , an increase of33% . - Import - Import segment income(2) was
$201 million compared to year-ago segment income of$124 million , an increase of63% . - Premium Luxury - Premium Luxury segment income(2) was
$206 million compared to year-ago segment income of$144 million , an increase of43% .
For the nine-month period ended September 30, 2021, AutoNation reported net income from continuing operations of
Selected GAAP Financial Data | |||||
($ in millions, except per share data) | |||||
Nine Months Ended Sep 30, | |||||
2021 | 2020 | 2019 | YoY | 2021 | |
Revenue | $ 19,261.7 | $ 14,604.9 | $ 15,786.8 | ||
Gross Profit | $ 3,631.0 | $ 2,579.7 | $ 2,627.4 | ||
Operating Income | $ 1,370.4 | $ 253.8 | $ 587.8 | ||
Net Income from Continuing Operations | $ 986.1 | $ 230.3 | $ 293.1 | ||
Diluted EPS from Continuing Operations | $ 12.63 | $ 2.59 | $ 3.24 | ||
Selected Non-GAAP Financial Data | |||||
($ in millions, except per share data) | |||||
Nine Months Ended Sep 30, | |||||
2021 | 2020 | 2019 | YoY | 2021 | |
Adjusted Operating Income | $ 1,370.4 | $ 680.0 | $ 594.9 | ||
Adjusted Net Income from Continuing Operations | $ 980.4 | $ 418.1 | $ 300.4 | ||
Adjusted Diluted EPS from Continuing Operations | $ 12.55 | $ 4.70 | $ 3.32 | ||
The third quarter conference call may be accessed by telephone 844-200-6205 (Conference ID:577526) at 10:00 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 under "Events & Presentations" following the call. A playback of the conference call will be available after 1:00 p.m. Eastern Time on October 21, 2021, through November 11, 2021, by calling 866-813-9403 (Conference ID: 527886). 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 General Motors, Ford, and Stellantis (formerly FCA US); the Import segment is comprised of stores that sell vehicles manufactured primarily by Toyota, Honda, Subaru, Nissan, and Hyundai; 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 our reportable segments and is defined as operating income less floorplan interest expense. |
About AutoNation, Inc. AutoNation, America's largest and most admired automotive retailer, is transforming the automotive industry through its bold leadership, innovation, and comprehensive brand extensions. As of September 30, 2021, AutoNation owned and operated over 300 locations from coast to coast. AutoNation has sold over 13 million vehicles, the first automotive retailer to reach this milestone. AutoNation's success is driven by a commitment to delivering a peerless experience through customer-focused sales and service processes. Since 2013, AutoNation has raised over
Please visit www.autonation.com, investors.autonation.com, www.twitter.com/CEOMikeJackson, and www.twitter.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.
NON-GAAP FINANCIAL MEASURES
This news release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, which exclude certain items disclosed in the attached financial tables. As required by SEC rules, the Company provides reconciliations of these measures to the most directly comparable GAAP measures. The Company believes that these non-GAAP financial measures improve the transparency of the Company's disclosure, provide a meaningful presentation of the Company's results excluding the impact of items not related to the Company's ongoing core business operations, and improve the period-to-period comparability of the Company's results from its core business operations. Non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated and presented in accordance with GAAP.
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, or investments (including the planned expansion of our AutoNation USA pre-owned vehicle stores); pending acquisitions; and our investments in digital and online capabilities and other brand extension strategies; as well as statements regarding our expectations for the future performance of our business (including with respect to new and pre-owned vehicle sales targets), 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: economic conditions, including changes in consumer demand, unemployment rates, interest rates, fuel prices, and tariffs; our ability to implement successfully our strategic initiatives, partnerships, and investments, including the planned expansion of our AutoNation USA stores; our ability to identify, acquire, and build out suitable locations in a timely manner; our ability to acquire and integrate successfully new franchises; restrictions imposed by vehicle manufacturers and our ability to obtain manufacturer approval for acquisitions; our ability to develop successfully our digital and online capabilities and other brand extension strategies; supply chain disruptions and inventory availability; our ability to maintain and enhance our retail brands and reputation and to attract consumers to our own digital channels; our ability to attain planned sales volumes within our expected time frames; new and used vehicle margins; our ability to successfully implement and maintain expense controls; the success and financial viability and the incentive and marketing programs of vehicle manufacturers and distributors with which we hold franchises; the response by federal, state, and local governments and other third parties to, and the economic impacts of, the COVID-19 pandemic; 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 OPERATIONS | |||||||||
(In millions, except per share data) | |||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||
2021 | 2020 | 2021 | 2020 | ||||||
Revenue: | |||||||||
New vehicle | $ | 2,753.8 | $ | 2,748.4 | $ | 9,164.4 | $ | 7,291.6 | |
Used vehicle | 2,323.2 | 1,516.9 | 6,295.2 | 4,090.1 | |||||
Parts and service | 943.7 | 852.8 | 2,745.5 | 2,419.0 | |||||
Finance and insurance, net | 348.9 | 281.2 | 1,030.9 | 763.4 | |||||
Other | 9.9 | 5.6 | 25.7 | 40.8 | |||||
Total revenue | 6,379.5 | 5,404.9 | 19,261.7 | 14,604.9 | |||||
Cost of sales: | |||||||||
New vehicle | 2,434.2 | 2,581.2 | 8,334.3 | 6,908.4 | |||||
Used vehicle | 2,146.2 | 1,370.0 | 5,775.3 | 3,735.2 | |||||
Parts and service | 518.9 | 477.6 | 1,499.2 | 1,343.6 | |||||
Other | 8.3 | 4.6 | 21.9 | 38.0 | |||||
Total cost of sales | 5,107.6 | 4,433.4 | 15,630.7 | 12,025.2 | |||||
Gross profit | 1,271.9 | 971.5 | 3,631.0 | 2,579.7 | |||||
Selling, general, and administrative expenses | 723.7 | 641.4 | 2,120.5 | 1,790.0 | |||||
Depreciation and amortization | 47.6 | 51.8 | 143.4 | 149.0 | |||||
Goodwill impairment | - | - | - | 318.3 | |||||
Franchise rights impairment | - | - | - | 57.5 | |||||
Other (income) expense, net | (2.7) | 6.6 | (3.3) | 11.1 | |||||
Operating income | 503.3 | 271.7 | 1,370.4 | 253.8 | |||||
Non-operating income (expense) items: | |||||||||
Floorplan interest expense | (4.9) | (11.1) | (20.9) | (52.9) | |||||
Other interest expense | (24.1) | (23.6) | (66.2) | (70.3) | |||||
Other income (loss), net(1) | (0.8) | 6.5 | 19.1 | 218.2 | |||||
Income from continuing operations before income taxes | 473.5 | 243.5 | 1,302.4 | 348.8 | |||||
Income tax provision | 111.8 | 60.9 | 316.3 | 118.5 | |||||
Net income from continuing operations | 361.7 | 182.6 | 986.1 | 230.3 | |||||
Loss from discontinued operations, net of income taxes | - | - | (0.2) | (0.2) | |||||
Net income | $ | 361.7 | $ | 182.6 | $ | 985.9 | $ | 230.1 | |
Diluted earnings (loss) per share(2): | |||||||||
Continuing operations | $ | 5.12 | $ | 2.05 | $ | 12.63 | $ | 2.59 | |
Discontinued operations | $ | - | $ | - | $ | - | $ | - | |
Net income | $ | 5.12 | $ | 2.05 | $ | 12.62 | $ | 2.59 | |
Weighted average common shares outstanding | 70.7 | 88.9 | 78.1 | 89.0 | |||||
Common shares outstanding, net of treasury stock, at period end | 65.5 | 87.8 | 65.5 | 87.8 | |||||
(1) | Current year-to-date and prior quarter-to-date and year-to-date periods include gains (losses) on minority equity investments. | ||||||||
(2) | 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 September 30, | Nine Months Ended September 30, | ||||||||||||||||
2021 | 2020 | $ Variance | % Variance | 2021 | 2020 | $ Variance | % Variance | |||||||||||
Revenue: | ||||||||||||||||||
New vehicle | $ | 2,753.8 | $ | 2,748.4 | $ | 5.4 | 0.2 | $ | 9,164.4 | $ | 7,291.6 | $ | 1,872.8 | 25.7 | ||||
Retail used vehicle | 2,158.2 | 1,421.0 | 737.2 | 51.9 | 5,888.1 | 3,845.5 | 2,042.6 | 53.1 | ||||||||||
Wholesale | 165.0 | 95.9 | 69.1 | 72.1 | 407.1 | 244.6 | 162.5 | 66.4 | ||||||||||
Used vehicle | 2,323.2 | 1,516.9 | 806.3 | 53.2 | 6,295.2 | 4,090.1 | 2,205.1 | 53.9 | ||||||||||
Finance and insurance, net | 348.9 | 281.2 | 67.7 | 24.1 | 1,030.9 | 763.4 | 267.5 | 35.0 | ||||||||||
Total variable operations | 5,425.9 | 4,546.5 | 879.4 | 19.3 | 16,490.5 | 12,145.1 | 4,345.4 | 35.8 | ||||||||||
Parts and service | 943.7 | 852.8 | 90.9 | 10.7 | 2,745.5 | 2,419.0 | 326.5 | 13.5 | ||||||||||
Other | 9.9 | 5.6 | 4.3 | 25.7 | 40.8 | (15.1) | ||||||||||||
Total revenue | $ | 6,379.5 | $ | 5,404.9 | $ | 974.6 | 18.0 | $ | 19,261.7 | $ | 14,604.9 | $ | 4,656.8 | 31.9 | ||||
Gross profit: | ||||||||||||||||||
New vehicle | $ | 319.6 | $ | 167.2 | $ | 152.4 | 91.1 | $ | 830.1 | $ | 383.2 | $ | 446.9 | 116.6 | ||||
Retail used vehicle | 163.1 | 128.8 | 34.3 | 26.6 | 468.7 | 318.1 | 150.6 | 47.3 | ||||||||||
Wholesale | 13.9 | 18.1 | (4.2) | 51.2 | 36.8 | 14.4 | ||||||||||||
Used vehicle | 177.0 | 146.9 | 30.1 | 20.5 | 519.9 | 354.9 | 165.0 | 46.5 | ||||||||||
Finance and insurance | 348.9 | 281.2 | 67.7 | 24.1 | 1,030.9 | 763.4 | 267.5 | 35.0 | ||||||||||
Total variable operations | 845.5 | 595.3 | 250.2 | 42.0 | 2,380.9 | 1,501.5 | 879.4 | 58.6 | ||||||||||
Parts and service | 424.8 | 375.2 | 49.6 | 13.2 | 1,246.3 | 1,075.4 | 170.9 | 15.9 | ||||||||||
Other | 1.6 | 1.0 | 0.6 | 3.8 | 2.8 | 1.0 | ||||||||||||
Total gross profit | 1,271.9 | 971.5 | 300.4 | 30.9 | 3,631.0 | 2,579.7 | 1,051.3 | 40.8 | ||||||||||
Selling, general, and administrative expenses | 723.7 | 641.4 | (82.3) | (12.8) | 2,120.5 | 1,790.0 | (330.5) | (18.5) | ||||||||||
Depreciation and amortization | 47.6 | 51.8 | 4.2 | 143.4 | 149.0 | 5.6 | ||||||||||||
Goodwill impairment | - | - | - | - | 318.3 | 318.3 | ||||||||||||
Franchise rights impairment | - | - | - | - | 57.5 | 57.5 | ||||||||||||
Other (income) expense, net | (2.7) | 6.6 | 9.3 | (3.3) | 11.1 | 14.4 | ||||||||||||
Operating income | 503.3 | 271.7 | 231.6 | 85.2 | 1,370.4 | 253.8 | 1,116.6 | 440.0 | ||||||||||
Non-operating income (expense) items: | ||||||||||||||||||
Floorplan interest expense | (4.9) | (11.1) | 6.2 | (20.9) | (52.9) | 32.0 | ||||||||||||
Other interest expense | (24.1) | (23.6) | (0.5) | (66.2) | (70.3) | 4.1 | ||||||||||||
Other income (loss), net | (0.8) | 6.5 | (7.3) | 19.1 | 218.2 | (199.1) | ||||||||||||
Income from continuing operations before income taxes | $ | 473.5 | $ | 243.5 | $ | 230.0 | 94.5 | $ | 1,302.4 | $ | 348.8 | $ | 953.6 | 273.4 | ||||
Retail vehicle unit sales: | ||||||||||||||||||
New | 58,277 | 65,998 | (7,721) | (11.7) | 204,802 | 177,250 | 27,552 | 15.5 | ||||||||||
Used | 77,553 | 64,587 | 12,966 | 20.1 | 229,922 | 179,656 | 50,266 | 28.0 | ||||||||||
135,830 | 130,585 | 5,245 | 4.0 | 434,724 | 356,906 | 77,818 | 21.8 | |||||||||||
Revenue per vehicle retailed: | ||||||||||||||||||
New | $ | 47,254 | $ | 41,644 | $ | 5,610 | 13.5 | $ | 44,748 | $ | 41,137 | $ | 3,611 | 8.8 | ||||
Used | $ | 27,829 | $ | 22,001 | $ | 5,828 | 26.5 | $ | 25,609 | $ | 21,405 | $ | 4,204 | 19.6 | ||||
Gross profit per vehicle retailed: | ||||||||||||||||||
New | $ | 5,484 | $ | 2,533 | $ | 2,951 | 116.5 | $ | 4,053 | $ | 2,162 | $ | 1,891 | 87.5 | ||||
Used | $ | 2,103 | $ | 1,994 | $ | 109 | 5.5 | $ | 2,039 | $ | 1,771 | $ | 268 | 15.1 | ||||
Finance and insurance | $ | 2,569 | $ | 2,153 | $ | 416 | 19.3 | $ | 2,371 | $ | 2,139 | $ | 232 | 10.8 | ||||
Total variable operations(1) | $ | 6,122 | $ | 4,420 | $ | 1,702 | 38.5 | $ | 5,359 | $ | 4,104 | $ | 1,255 | 30.6 | ||||
Operating Percentages | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2021 (%) | 2020 (%) | 2021 (%) | 2020 (%) | |||||||||||||||
Revenue mix percentages: | ||||||||||||||||||
New vehicle | 43.2 | 50.9 | 47.6 | 49.9 | ||||||||||||||
Used vehicle | 36.4 | 28.1 | 32.7 | 28.0 | ||||||||||||||
Parts and service | 14.8 | 15.8 | 14.3 | 16.6 | ||||||||||||||
Finance and insurance, net | 5.5 | 5.2 | 5.4 | 5.2 | ||||||||||||||
Other | 0.1 | - | - | 0.3 | ||||||||||||||
100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||||
Gross profit mix percentages: | ||||||||||||||||||
New vehicle | 25.1 | 17.2 | 22.9 | 14.9 | ||||||||||||||
Used vehicle | 13.9 | 15.1 | 14.3 | 13.8 | ||||||||||||||
Parts and service | 33.4 | 38.6 | 34.3 | 41.7 | ||||||||||||||
Finance and insurance | 27.4 | 28.9 | 28.4 | 29.6 | ||||||||||||||
Other | 0.2 | 0.2 | 0.1 | - | ||||||||||||||
100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||||
Operating items as a percentage of revenue: | ||||||||||||||||||
Gross profit: | ||||||||||||||||||
New vehicle | 11.6 | 6.1 | 9.1 | 5.3 | ||||||||||||||
Used vehicle - retail | 7.6 | 9.1 | 8.0 | 8.3 | ||||||||||||||
Parts and service | 45.0 | 44.0 | 45.4 | 44.5 | ||||||||||||||
Total | 19.9 | 18.0 | 18.9 | 17.7 | ||||||||||||||
Selling, general, and administrative expenses | 11.3 | 11.9 | 11.0 | 12.3 | ||||||||||||||
Operating income | 7.9 | 5.0 | 7.1 | 1.7 | ||||||||||||||
Operating items as a percentage of total gross profit: | ||||||||||||||||||
Selling, general, and administrative expenses | 56.9 | 66.0 | 58.4 | 69.4 | ||||||||||||||
Operating income | 39.6 | 28.0 | 37.7 | 9.8 | ||||||||||||||
(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. | |||||||||||||||||
AUTONATION, INC. | |||||||||||||||||
UNAUDITED SUPPLEMENTARY DATA | |||||||||||||||||
($ in millions) | |||||||||||||||||
Segment Operating Highlights | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | $ Variance | % Variance | 2021 | 2020 | $ Variance | % Variance | ||||||||||
Revenue: | |||||||||||||||||
Domestic | $ | 1,955.2 | $ | 1,734.5 | $ | 220.7 | 12.7 | $ | 5,926.7 | $ | 4,704.0 | $ | 1,222.7 | 26.0 | |||
Import | 1,983.3 | 1,621.5 | 361.8 | 22.3 | 5,927.9 | 4,308.9 | 1,619.0 | 37.6 | |||||||||
Premium luxury | 2,218.0 | 1,870.0 | 348.0 | 18.6 | 6,790.0 | 5,051.6 | 1,738.4 | 34.4 | |||||||||
Total | 6,156.5 | 5,226.0 | 930.5 | 17.8 | 18,644.6 | 14,064.5 | 4,580.1 | 32.6 | |||||||||
Corporate and other | 223.0 | 178.9 | 44.1 | 24.7 | 617.1 | 540.4 | 76.7 | 14.2 | |||||||||
Total consolidated revenue | $ | 6,379.5 | $ | 5,404.9 | $ | 974.6 | 18.0 | $ | 19,261.7 | $ | 14,604.9 | $ | 4,656.8 | 31.9 | |||
Segment income*: | |||||||||||||||||
Domestic | $ | 149.1 | $ | 111.9 | $ | 37.2 | 33.2 | $ | 436.6 | $ | 248.1 | $ | 188.5 | 76.0 | |||
Import | 200.7 | 123.5 | 77.2 | 62.5 | 530.3 | 277.7 | 252.6 | 91.0 | |||||||||
Premium luxury | 206.1 | 143.9 | 62.2 | 43.2 | 590.3 | 313.3 | 277.0 | 88.4 | |||||||||
Total | 555.9 | 379.3 | 176.6 | 46.6 | 1,557.2 | 839.1 | 718.1 | 85.6 | |||||||||
Corporate and other | (57.5) | (118.7) | 61.2 | (207.7) | (638.2) | 430.5 | |||||||||||
Add: Floorplan interest expense | 4.9 | 11.1 | (6.2) | 20.9 | 52.9 | (32.0) | |||||||||||
Operating income | $ | 503.3 | $ | 271.7 | $ | 231.6 | 85.2 | $ | 1,370.4 | $ | 253.8 | $ | 1,116.6 | 440.0 | |||
* 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 | 15,878 | 21,620 | (5,742) | (26.6) | 59,006 | 57,995 | 1,011 | 1.7 | |||||||||
Import | 27,968 | 29,356 | (1,388) | (4.7) | 94,947 | 78,248 | 16,699 | 21.3 | |||||||||
Premium luxury | 14,431 | 15,022 | (591) | (3.9) | 50,849 | 41,007 | 9,842 | 24.0 | |||||||||
58,277 | 65,998 | (7,721) | (11.7) | 204,802 | 177,250 | 27,552 | 15.5 | ||||||||||
Retail used vehicle unit sales: | |||||||||||||||||
Domestic | 26,989 | 22,095 | 4,894 | 22.1 | 79,524 | 63,025 | 16,499 | 26.2 | |||||||||
Import | 26,450 | 22,281 | 4,169 | 18.7 | 78,679 | 61,414 | 17,265 | 28.1 | |||||||||
Premium luxury | 21,031 | 18,075 | 2,956 | 16.4 | 62,935 | 49,013 | 13,922 | 28.4 | |||||||||
74,470 | 62,451 | 12,019 | 19.2 | 221,138 | 173,452 | 47,686 | 27.5 | ||||||||||
Brand Mix - Retail New Vehicle Units Sold | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2021 (%) | 2020 (%) | 2021 (%) | 2020 (%) | ||||||||||||||
Domestic: | |||||||||||||||||
Ford, Lincoln | 8.6 | 11.7 | 9.8 | 11.8 | |||||||||||||
Chevrolet, Buick, Cadillac, GMC | 9.1 | 10.7 | 10.0 | 11.0 | |||||||||||||
Chrysler, Dodge, Jeep, Ram | 9.5 | 10.4 | 9.0 | 9.9 | |||||||||||||
Domestic total | 27.2 | 32.8 | 28.8 | 32.7 | |||||||||||||
Import: | |||||||||||||||||
Toyota | 23.4 | 21.1 | 22.1 | 20.5 | |||||||||||||
Honda | 14.0 | 13.6 | 14.0 | 13.6 | |||||||||||||
Nissan | 2.6 | 2.5 | 2.6 | 2.6 | |||||||||||||
Other Import | 8.0 | 7.2 | 7.7 | 7.5 | |||||||||||||
Import total | 48.0 | 44.4 | 46.4 | 44.2 | |||||||||||||
Premium Luxury: | |||||||||||||||||
Mercedes-Benz | 7.6 | 8.1 | 8.5 | 8.9 | |||||||||||||
BMW | 8.1 | 6.0 | 7.4 | 5.8 | |||||||||||||
Lexus | 3.6 | 2.7 | 3.0 | 2.5 | |||||||||||||
Audi | 1.9 | 2.2 | 2.3 | 2.2 | |||||||||||||
Jaguar Land Rover | 1.8 | 2.2 | 2.0 | 2.3 | |||||||||||||
Other Premium Luxury | 1.8 | 1.6 | 1.6 | 1.4 | |||||||||||||
Premium Luxury total | 24.8 | 22.8 | 24.8 | 23.1 | |||||||||||||
100.0 | 100.0 | 100.0 | 100.0 | ||||||||||||||
AUTONATION, INC | ||||||||||||||
UNAUDITED SUPPLEMENTARY DATA, Continued | ||||||||||||||
($ in millions) | ||||||||||||||
Capital Expenditures / Stock Repurchases | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||
Capital expenditures (1) | $ | 47.5 | $ | 37.3 | $ | 166.2 | $ | 91.9 | ||||||
Cash paid for acquisitions, net of cash acquired | $ | 209.1 | $ | - | $ | 209.1 | $ | 0.4 | ||||||
Proceeds from exercises of stock options | $ | 13.6 | $ | 30.5 | $ | 42.6 | $ | 31.5 | ||||||
Stock repurchases: | ||||||||||||||
Aggregate purchase price | $ | 879.2 | $ | - | $ | 1,921.4 | $ | 80.0 | ||||||
Shares repurchased (in millions) | 7.9 | - | 19.2 | 2.5 | ||||||||||
Floorplan Assistance and Expense | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2021 | 2020 | Variance | 2021 | 2020 | Variance | |||||||||
Floorplan assistance earned (included in cost of sales) | $ | 27.1 | $ | 28.9 | $ | (1.8) | $ | 93.9 | $ | 77.1 | $ | 16.8 | ||
New vehicle floorplan interest expense | (3.8) | (10.4) | 6.6 | (18.7) | (47.6) | 28.9 | ||||||||
Net new vehicle inventory carrying benefit | $ | 23.3 | $ | 18.5 | $ | 4.8 | $ | 75.2 | $ | 29.5 | $ | 45.7 | ||
Balance Sheet and Other Highlights | ||||||||||||||
September 30, 2021 | December 31, 2020 | September 30, 2020 | ||||||||||||
Cash and cash equivalents | $ | 72.0 | $ | 569.6 | $ | 350.5 | ||||||||
Inventory | $ | 1,496.6 | $ | 2,598.5 | $ | 2,482.5 | ||||||||
Total floorplan notes payable | $ | 1,248.4 | $ | 2,759.9 | $ | 2,308.6 | ||||||||
Non-vehicle debt | $ | 2,680.3 | $ | 2,101.8 | $ | 2,089.7 | ||||||||
Equity | $ | 2,356.5 | $ | 3,235.7 | $ | 3,357.9 | ||||||||
New days supply (industry standard of selling days) | 10 days | 42 days | 43 days | |||||||||||
Used days supply (trailing calendar month days) | 35 days | 39 days | 39 days | |||||||||||
Key Credit Agreement Covenant Compliance Calculations(2) | ||||||||||||||
Leverage ratio | 1.40x | |||||||||||||
Covenant | less than or equal to | 3.75x | ||||||||||||
Capitalization ratio | ||||||||||||||
Covenant | less than or equal to | |||||||||||||
(1) | Includes accrued construction in progress and excludes property associated with leases entered into during the period | |||||||||||||
(2) | Calculated in accordance with our credit agreement as filed with the SEC | |||||||||||||
AUTONATION, INC. | |||||||||||||||||||||||||||||
UNAUDITED SUPPLEMENTARY DATA, Continued | |||||||||||||||||||||||||||||
($ in millions, except per share data) | |||||||||||||||||||||||||||||
Comparable Basis Reconciliations(1) | |||||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||
Gross Profit | Operating Income | Income from Continuing | Income Tax Provision(2) | Effective Tax Rate | Net Income | Diluted Earnings Per Share(3) | |||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||
As reported | $ | 361.7 | $ | 182.6 | $ | 5.12 | $ | 2.05 | |||||||||||||||||||||
Discontinued operations, net of income taxes | - | - | $ | - | $ | - | |||||||||||||||||||||||
From continuing operations, as reported | $ 1,271.9 | $ 971.5 | $ | 503.3 | $ | 271.7 | $ | 473.5 | $ | 243.5 | $ | 111.8 | $ | 60.9 | 361.7 | 182.6 | $ | 5.12 | $ | 2.05 | |||||||||
Loss on equity investment | - | - | - | - | - | 2.0 | - | 0.5 | - | 1.5 | $ | - | $ | 0.02 | |||||||||||||||
ACP inventory valuation adjustment | - | 20.6 | - | 20.6 | - | 20.6 | - | 5.0 | - | 15.6 | $ | - | $ | 0.18 | |||||||||||||||
SG&A costs associated with exit of ACP business(4) | - | - | - | 2.9 | - | 2.9 | - | 0.7 | - | 2.2 | $ | - | $ | 0.02 | |||||||||||||||
Other costs associated with exit of ACP business(5) | - | - | - | 13.0 | - | 13.0 | - | 3.1 | - | 9.9 | $ | - | $ | 0.11 | |||||||||||||||
Adjusted | $ 1,271.9 | $ 992.1 | $ | 503.3 | $ | 308.2 | $ | 473.5 | $ | 282.0 | $ | 111.8 | $ | 70.2 | $ | 361.7 | $ | 211.8 | $ | 5.12 | $ | 2.38 | |||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||
SG&A | SG&A as a Percentage of | ||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||
As reported | $ 723.7 | $ 641.4 | 56.9 | 66.0 | |||||||||||||||||||||||||
Excluding SG&A costs associated with exit of ACP business | - | 2.9 | |||||||||||||||||||||||||||
Adjusted | $ 723.7 | $ 638.5 | 56.9 | 64.4 | |||||||||||||||||||||||||
(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) | Includes | ||||||||||||||||||||||||||||
(5) | Includes | ||||||||||||||||||||||||||||
(6) | Both numerator and denominator are adjusted, as applicable. | ||||||||||||||||||||||||||||
AUTONATION, INC. | |||||||||||||||||||||||||||||
UNAUDITED SUPPLEMENTARY DATA, Continued | |||||||||||||||||||||||||||||
($ in millions, except per share data) | |||||||||||||||||||||||||||||
Comparable Basis Reconciliations(1) | |||||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||
Gross Profit | Operating Income | Income from Continuing | Income Tax Provision(2) | Effective Tax Rate | Net Income | Diluted Earnings Per Share(3) | |||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||
As reported | $ 985.9 | $ 230.1 | $ 12.62 | $ 2.59 | |||||||||||||||||||||||||
Discontinued operations, net of income taxes | 0.2 | 0.2 | $ - | $ - | |||||||||||||||||||||||||
From continuing operations, as reported | $ 3,631.0 | $ 2,579.7 | $ 1,370.4 | $ 253.8 | $ 1,302.4 | $ 348.8 | $ 316.3 | $ 118.5 | 986.1 | 230.3 | $ 12.63 | $ 2.59 | |||||||||||||||||
Gain on equity investment | - | - | - | - | (7.5) | (212.7) | (1.8) | (53.7) | (5.7) | (159.0) | $ (0.07) | $ (1.79) | |||||||||||||||||
ACP inventory valuation adjustment | - | 20.6 | - | 20.6 | - | 20.6 | - | 5.0 | - | 15.6 | $ - | $ 0.18 | |||||||||||||||||
SG&A costs associated with exit of ACP business(4) | - | - | - | 2.9 | - | 2.9 | - | 0.7 | - | 2.2 | $ - | $ 0.02 | |||||||||||||||||
Other costs associated with exit of ACP business(5) | - | - | - | 13.0 | - | 13.0 | - | 3.1 | - | 9.9 | $ - | $ 0.11 | |||||||||||||||||
Executive separation costs | - | - | - | 5.5 | - | 5.5 | - | 1.0 | - | 4.5 | $ - | $ 0.05 | |||||||||||||||||
Goodwill and franchise rights impairment | - | - | - | 375.8 | - | 375.8 | - | 67.4 | - | 308.4 | $ - | $ 3.47 | |||||||||||||||||
Asset impairments and net gains on store dispositions | - | - | - | 8.4 | - | 8.4 | - | 2.2 | - | 6.2 | $ - | $ 0.07 | |||||||||||||||||
Adjusted | $ 3,631.0 | $ 2,600.3 | $ 1,370.4 | $ 680.0 | $ 1,294.9 | $ 562.3 | $ 314.5 | $ 144.2 | $ 980.4 | $ 418.1 | $ 12.55 | $ 4.70 | |||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||
SG&A | SG&A as a Percentage of | ||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||
As reported | $ 2,120.5 | $ 1,790.0 | 58.4 | 69.4 | |||||||||||||||||||||||||
Excluding SG&A costs associated with exit of ACP business | - | 2.9 | |||||||||||||||||||||||||||
Excluding executive separation costs | - | 5.5 | |||||||||||||||||||||||||||
Adjusted | $ 2,120.5 | $ 1,781.6 | 58.4 | 68.5 | |||||||||||||||||||||||||
(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) | Includes | ||||||||||||||||||||||||||||
(5) | Includes | ||||||||||||||||||||||||||||
(6) | Both numerator and denominator are adjusted, as applicable. | ||||||||||||||||||||||||||||
AUTONATION, INC. | ||||||||||||||||||
UNAUDITED SAME STORE DATA | ||||||||||||||||||
($ in millions, except per vehicle data) | ||||||||||||||||||
Operating Highlights | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2021 | 2020 | $ Variance | % Variance | 2021 | 2020 | $ Variance | % Variance | |||||||||||
Revenue: | ||||||||||||||||||
New vehicle | $ | 2,753.8 | 2,743.2 | $ | 10.6 | 0.4 | $ | 9,156.7 | 7,278.0 | $ | 1,878.7 | 25.8 | ||||||
Retail used vehicle | 2,146.6 | 1,418.3 | 728.3 | 51.4 | 5,867.2 | 3,837.2 | 2,030.0 | 52.9 | ||||||||||
Wholesale | 164.6 | 95.7 | 68.9 | 72.0 | 406.3 | 244.1 | 162.2 | 66.4 | ||||||||||
Used vehicle | 2,311.2 | 1,514.0 | 797.2 | 52.7 | 6,273.5 | 4,081.3 | 2,192.2 | 53.7 | ||||||||||
Finance and insurance, net | 348.3 | 280.8 | 67.5 | 24.0 | 1,029.3 | 762.0 | 267.3 | 35.1 | ||||||||||
Total variable operations | 5,413.3 | 4,538.0 | 875.3 | 19.3 | 16,459.5 | 12,121.3 | 4,338.2 | 35.8 | ||||||||||
Parts and service | 942.4 | 836.9 | 105.5 | 12.6 | 2,740.8 | 2,364.6 | 376.2 | 15.9 | ||||||||||
Other | 10.0 | 5.4 | 4.6 | 25.8 | 40.4 | (14.6) | ||||||||||||
Total revenue | $ | 6,365.7 | 5,380.3 | $ | 985.4 | 18.3 | $ | 19,226.1 | 14,526.3 | $ | 4,699.8 | 32.4 | ||||||
Gross profit: | ||||||||||||||||||
New vehicle | $ | 319.6 | 166.9 | $ | 152.7 | 91.5 | $ | 829.5 | 382.7 | $ | 446.8 | 116.7 | ||||||
Retail used vehicle | 162.2 | 128.5 | 33.7 | 26.2 | 466.9 | 317.7 | 149.2 | 47.0 | ||||||||||
Wholesale | 13.9 | 18.1 | (4.2) | 51.2 | 36.8 | 14.4 | ||||||||||||
Used vehicle | 176.1 | 146.6 | 29.5 | 20.1 | 518.1 | 354.5 | 163.6 | 46.1 | ||||||||||
Finance and insurance | 348.3 | 280.8 | 67.5 | 24.0 | 1,029.3 | 762.0 | 267.3 | 35.1 | ||||||||||
Total variable operations | 844.0 | 594.3 | 249.7 | 42.0 | 2,376.9 | 1,499.2 | 877.7 | 58.5 | ||||||||||
Parts and service | 424.3 | 391.5 | 32.8 | 8.4 | 1,244.4 | 1,084.2 | 160.2 | 14.8 | ||||||||||
Other | 1.4 | 0.7 | 0.7 | 3.7 | 2.3 | 1.4 | ||||||||||||
Total gross profit | $ | 1,269.7 | 986.5 | $ | 283.2 | 28.7 | $ | 3,625.0 | 2,585.7 | $ | 1,039.3 | 40.2 | ||||||
Retail vehicle unit sales: | ||||||||||||||||||
New | 58,276 | 65,838 | (7,562) | (11.5) | 204,569 | 176,796 | 27,773 | 15.7 | ||||||||||
Used | 77,073 | 64,393 | 12,680 | 19.7 | 228,944 | 179,051 | 49,893 | 27.9 | ||||||||||
135,349 | 130,231 | 5,118 | 3.9 | 433,513 | 355,847 | 77,666 | 21.8 | |||||||||||
Revenue per vehicle retailed: | ||||||||||||||||||
New | $ | 47,254 | 41,666 | $ | 5,588 | 13.4 | $ | 44,761 | 41,166 | $ | 3,595 | 8.7 | ||||||
Used | $ | 27,852 | 22,026 | $ | 5,826 | 26.5 | $ | 25,627 | 21,431 | $ | 4,196 | 19.6 | ||||||
Gross profit per vehicle retailed: | ||||||||||||||||||
New | $ | 5,484 | 2,535 | $ | 2,949 | 116.3 | $ | 4,055 | 2,165 | $ | 1,890 | 87.3 | ||||||
Used | $ | 2,104 | 1,996 | $ | 108 | 5.4 | $ | 2,039 | 1,774 | $ | 265 | 14.9 | ||||||
Finance and insurance | $ | 2,573 | 2,156 | $ | 417 | 19.3 | $ | 2,374 | 2,141 | $ | 233 | 10.9 | ||||||
Total variable operations(1) | $ | 6,133 | 4,424 | $ | 1,709 | 38.6 | $ | 5,365 | 4,110 | $ | 1,255 | 30.5 | ||||||
Operating Percentages | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2021 (%) | 2020 (%) | 2021 (%) | 2020 (%) | |||||||||||||||
Revenue mix percentages: | ||||||||||||||||||
New vehicle | 43.3 | 51.0 | 47.6 | 50.1 | ||||||||||||||
Used vehicle | 36.3 | 28.1 | 32.6 | 28.1 | ||||||||||||||
Parts and service | 14.8 | 15.6 | 14.3 | 16.3 | ||||||||||||||
Finance and insurance, net | 5.5 | 5.2 | 5.4 | 5.2 | ||||||||||||||
Other | 0.1 | 0.1 | 0.1 | 0.3 | ||||||||||||||
100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||||
Gross profit mix percentages: | ||||||||||||||||||
New vehicle | 25.2 | 16.9 | 22.9 | 14.8 | ||||||||||||||
Used vehicle | 13.9 | 14.9 | 14.3 | 13.7 | ||||||||||||||
Parts and service | 33.4 | 39.7 | 34.3 | 41.9 | ||||||||||||||
Finance and insurance | 27.4 | 28.5 | 28.4 | 29.5 | ||||||||||||||
Other | 0.1 | - | 0.1 | 0.1 | ||||||||||||||
100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||||
Operating items as a percentage of revenue: | ||||||||||||||||||
Gross profit: | ||||||||||||||||||
New vehicle | 11.6 | 6.1 | 9.1 | 5.3 | ||||||||||||||
Used vehicle - retail | 7.6 | 9.1 | 8.0 | 8.3 | ||||||||||||||
Parts and service | 45.0 | 46.8 | 45.4 | 45.9 | ||||||||||||||
Total | 19.9 | 18.3 | 18.9 | 17.8 | ||||||||||||||
(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. | |||||||||||||||||
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SOURCE AutoNation, Inc.
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