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AutoNation Reports Third Quarter 2024 Results

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AutoNation reported Q3 2024 results with revenue of $6.6 billion, down 4% year-over-year, and EPS of $4.61 ($4.02 adjusted). The quarter saw 2% growth in same-store new vehicle sales and record After-Sales gross profit of $558 million. Results were impacted by CDK outage effects, reducing EPS by $0.21. Key metrics showed mixed performance: new vehicle unit sales increased 1% while used vehicle sales declined 8%. The company maintained strong liquidity of $1.6 billion and continued share repurchases, buying back 36,000 shares for $6 million during Q3.

AutoNation ha riportato i risultati del terzo trimestre 2024 con un fatturato di 6,6 miliardi di dollari, in calo del 4% rispetto all'anno precedente, e un utile per azione di $4,61 ($4,02 rettificato). Nel trimestre si è registrata una crescita del 2% nelle vendite di veicoli nuovi in negozi comparabili e un profitto lordo record nell'after-sales di 558 milioni di dollari. I risultati sono stati influenzati dagli effetti dell'interruzione di CDK, che hanno ridotto l'utile per azione di $0,21. Le metriche chiave hanno mostrato performance miste: le vendite di veicoli nuovi sono aumentate dell'1%, mentre quelle di veicoli usati sono diminuite dell'8%. L'azienda ha mantenuto una forte liquidità di 1,6 miliardi di dollari e ha proseguito con i riacquisti di azioni, comprando 36.000 azioni al costo di 6 milioni di dollari durante il terzo trimestre.

AutoNation reportó resultados del tercer trimestre de 2024 con ingresos de 6.6 mil millones de dólares, una disminución del 4% interanual, y un beneficio por acción de $4.61 ($4.02 ajustado). El trimestre vio un crecimiento del 2% en las ventas de vehículos nuevos en tiendas comparables y un beneficio bruto récord de after-sales de 558 millones de dólares. Los resultados se vieron afectados por los efectos de la interrupción de CDK, lo que redujo el beneficio por acción en $0.21. Las métricas clave mostraron un rendimiento mixto: las ventas de unidades de vehículos nuevos aumentaron un 1% mientras que las ventas de vehículos usados cayeron un 8%. La empresa mantuvo una fuerte liquidez de 1.6 mil millones de dólares y continuó con la recompra de acciones, comprando 36,000 acciones por 6 millones de dólares durante el tercer trimestre.

오토네이션은 2024년 3분기 실적을 보고하며 66억 달러의 수익을 기록했으며, 이는 전년 대비 4% 감소한 수치입니다. 주당순이익(EPS)은 $4.61 ($4.02 조정)입니다. 이번 분기에는 동일 매장 신규 차량 판매가 2% 성장했으며, 애프터세일즈 총이익이 5억 5천 8백만 달러로 역대 최대치를 기록했습니다. CDK 중단의 영향으로 EPS는 $0.21 줄어들었습니다. 주요 지표들은 혼합된 성과를 보였습니다: 신규 차량 판매량은 1% 증가했으나 중고 차량 판매량은 8% 감소했습니다. 회사는 16억 달러의 강력한 유동성을 유지했으며, 3분기 동안 6백만 달러에 36,000주를 매입하며 자사주 매입을 지속했습니다.

AutoNation a publié ses résultats du troisième trimestre 2024 avec des revenus s'élevant à 6,6 milliards de dollars, en baisse de 4% par rapport à l'année précédente, et un bénéfice par action de $4,61 ($4,02 ajusté). Au cours du trimestre, la société a enregistré une croissance de 2% des ventes de véhicules neufs dans les mêmes points de vente et un bénéfice brut record après-vente de 558 millions de dollars. Les résultats ont été impactés par les effets des pannes de CDK, réduisant le bénéfice par action de $0,21. Les indicateurs clés ont montré des performances mixtes : les ventes d'unités de véhicules neufs ont augmenté de 1% tandis que les ventes de véhicules d'occasion ont chuté de 8%. L'entreprise a maintenu une forte liquidité de 1,6 milliard de dollars et a poursuivi ses rachats d'actions, rachetant 36 000 actions pour 6 millions de dollars durant le troisième trimestre.

AutoNation berichtete über die Ergebnisse des dritten Quartals 2024 mit einem Umsatz von 6,6 Milliarden Dollar, was einem Rückgang von 4% im Vergleich zum Vorjahr entspricht, und einem Gewinn pro Aktie von $4,61 ($4,02 bereinigt). Im Quartal gab es ein Wachstum von 2% bei den Neuwagenverkäufen in vergleichbaren Geschäften und einen Rekordbruttogewinn aus Nachverkaufsleistungen von 558 Millionen Dollar. Die Ergebnisse wurden durch die Auswirkungen der CDK-Ausfälle beeinträchtigt, was den Gewinn pro Aktie um $0,21 reduzierte. Wichtige Kennzahlen zeigten uneinheitliche Leistungen: die Neuwagenverkäufe stiegen um 1%, während die Gebrauchtwagenverkäufe um 8% zurückgingen. Das Unternehmen hatte eine starke Liquidität von 1,6 Milliarden Dollar und setzte die Aktienrückkäufe fort und kaufte im 3. Quartal 36.000 Aktien für 6 Millionen Dollar zurück.

Positive
  • Record After-Sales gross profit of $558 million, up 2% YoY
  • 2% growth in Same Store New Vehicle unit sales
  • Strong liquidity position of $1.6 billion
  • $156 million in net proceeds from strategic divestiture of dealerships
  • SG&A as percentage of gross profit remained below pre-pandemic levels
Negative
  • Revenue declined 4% YoY to $6.6 billion
  • Net income decreased 24% YoY to $185.8 million
  • Used vehicle retail unit sales dropped 8%
  • New vehicle gross profit per unit decreased to $2,804 from $4,025 YoY
  • Operating income declined 16% YoY to $350.7 million

Insights

AutoNation's Q3 2024 results reveal significant headwinds, with $6.6 billion in revenue representing a 4% YoY decline. Key concerns include:

  • Adjusted EPS of $4.02, down 27% YoY
  • Net income declined 24% to $185.8 million
  • New vehicle gross profit per unit dropped to $2,804 from $4,025
  • Used vehicle sales decreased 8%

Despite challenges, there are positive indicators: strong After-Sales performance with record gross profit of $558 million, continued share repurchases totaling $356 million YTD and healthy liquidity of $1.6 billion. The company's strategic portfolio optimization through dealership divestitures generated $156 million in proceeds.

The automotive retail sector faces margin compression as evidenced by AutoNation's results. Notable market dynamics include:

  • Moderating vehicle prices affecting revenue despite higher new vehicle unit sales
  • Shifting consumer behavior with weakness in used vehicle demand
  • Operational disruptions from CDK outage impacting EPS by $0.21

The company's segment performance shows broader market trends with Premium Luxury maintaining relatively better margins despite volume pressures. The 2% same-store new vehicle growth suggests stable demand fundamentals, while strategic divestitures of underperforming locations indicate portfolio optimization efforts.

  • Q3 2024 EPS $4.61, adjusted EPS $4.02
  • Strong Same Store New Vehicle unit sales growth of 2%
  • Record After-Sales gross profit of $558 million
  • AN Finance growth continues with $700 million in YTD originations

FORT LAUDERDALE, Fla., Oct. 25, 2024 /PRNewswire/ -- AutoNation, Inc. (NYSE: AN), today reported third quarter 2024 revenue of $6.6 billion, EPS of $4.61, and adjusted EPS of $4.02. Third quarter 2024 results were adversely impacted by the residual effects of the CDK outage in July, which reduced earnings per share by an estimated $0.21 per share. Adjusted EPS excludes $0.59 of net favorable items, primarily related to gains on business and property dispositions, partially offset by other items. Reconciliations of non-GAAP financial measures are included in the attached financial tables.

"We are pleased to deliver solid operating results for the third quarter driven primarily by new vehicle unit sales growth, continued After-Sales momentum, and disciplined cost controls. We were able to navigate through a challenging environment, which included the lingering effects of the CDK outage, which we are relieved to now have behind us, weather challenges, and OEM stop-sale orders. Looking ahead, we remain focused on shareholder returns, are encouraged by the moderating interest rates and OEM support actions, and are committed to delivering a strong close to the year," said Mike Manley, AutoNation's Chief Executive Officer. 

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

Selected Financial Data

($ in millions, except per share data)



Three Months Ended

September 30,



2024


2023


YoY

Revenue


$             6,586.1


$             6,892.7


-4 %

Gross Profit


$             1,182.8


$             1,294.6


-9 %

Operating Income


$                350.7


$                419.5


-16 %

Net Income


$                185.8


$                243.7


-24 %

Diluted EPS


$                  4.61


$                  5.54


-17 %








Adjusted Operating Income*


$                320.3


$                415.8


-23 %

Adjusted Net Income*


$                162.2


$                243.7


-33 %

Adjusted EPS*


$                  4.02


$                  5.54


-27 %








New Vehicle Retail Unit Sales


63,150


62,289


1 %

Used Vehicle Retail Unit Sales


66,454


72,517


-8 %

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

  • Revenue - totaled $6.6 billion, down $307 million compared to the year-ago period, reflecting primarily lower average selling prices of vehicles and used vehicle unit sales, offset partially by increased new vehicle unit sales, and After-Sales growth.
    • New Vehicle Revenue – decreased $16 million or 1%, to $3.2 billion.
    • Used Vehicle Revenue – decreased $271 million or 12%, to $1.9 billion.
    • After-Sales Revenue – increased $14 million or 1%, to $1.2 billion.
    • Customer Financial Services Revenue – decreased $34 million or 9%, to $335 million.
  • Gross Profit - totaled $1.2 billion, down $112 million from $1.3 billion a year ago.
    • New Vehicle Gross Profit - decreased $74 million reflecting gross profit per vehicle retailed of $2,804 compared to $4,025 a year ago, and a 1% increase in unit sales.
    • Used Vehicle Gross Profit - decreased $17 million reflecting a gross profit per vehicle retailed of $1,589 compared to $1,746 a year ago and a 8% decrease in unit sales.
    • After-Sales Gross Profit - increased $12 million, or 2% from a year ago to $558 million reflecting higher revenue and a 50-basis point increase in margin.
    • Customer Financial Services Gross Profit - decreased $34 million from a year ago reflecting gross profit per vehicle retailed of $2,588, compared to $2,741 a year ago and a 4% decrease in total units sold.
  • SG&A as a Percentage of Gross Profit - was 68.6%, or 67.4% on an adjusted basis, and remained well below pre-pandemic levels despite impacts early in the quarter from the CDK outage.

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

  • Domestic Segment Income – was $62 million compared to the year-ago segment income of $107 million. Revenues of $1.8 billion decreased 11%.
  • Import Segment Income – was $119 million compared to the year-ago segment income of $165 million. Revenues of $2.0 billion decreased 1%.
  • Premium Luxury Segment Income – was $155 million compared to the year-ago segment income of $193 million. Revenues of $2.4 billion decreased 4%.

Year-to-date 2024 compared to the year-ago period:

Selected Financial Data

($ in millions, except per share data)



Nine Months Ended

September 30,



2024


2023


YoY

Revenue


$           19,552.2


$           20,181.5


-3 %

Gross Profit


$             3,543.8


$             3,916.3


-10 %

Operating Income


$                966.0


$             1,302.0


-26 %

Net Income


$                506.1


$                804.9


-37 %

Diluted EPS


$                12.31


$                17.65


-30 %








Adjusted Operating Income*


$                986.5


$             1,324.8


-26 %

Adjusted Net Income*


$                514.8


$                817.3


-37 %

Adjusted EPS*


$                12.53


$                17.92


-30 %








New Vehicle Retail Unit Sales


183,281


179,798


2 %

Used Vehicle Retail Unit Sales


201,079


208,868


-4 %

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

  • Revenue - totaled $19.6 billion, down $629 million compared to the year-ago period, reflecting primarily lower average selling prices of vehicles and used vehicle unit sales, offset partially by increased new vehicle unit sales and After-Sales growth.
    • New Vehicle Revenue – decreased $128 million or 1%, to $9.3 billion.
    • Used Vehicle Revenue – decreased $484 million or 8%, to $5.8 billion.
    • After-Sales Revenue – increased $68 million or 2%, to $3.5 billion.
    • Customer Financial Services Revenue – decreased $77 million or 7%, to $994 million.
  • Gross Profit - totaled $3.5 billion, down $373 million from $3.9 billion a year ago.
    • New Vehicle Gross Profit - decreased $262 million reflecting gross profit per vehicle retailed of $3,074 compared to $4,590 a year ago, offset partially by a 2% increase in unit sales.
    • Used Vehicle Gross Profit - decreased $82 million reflecting a gross profit per vehicle retailed of $1,565 compared to $1,907 a year ago and a 4% decrease in unit sales.
    • After-Sales Gross Profit - increased $51 million, or 3% from a year ago to $1.7 billion as revenue growth and higher margins largely offset lower sales resulting from the CDK outage incident.
    • Customer Financial Services Gross Profit - decreased $77 million from a year ago to $994 million reflecting gross profit per vehicle retailed of $2,586, compared to $2,757 a year ago, and a 1% decrease in total units sold.
  • SG&A as a Percentage of Gross Profit - was 68.6%, or 66.7% on an adjusted basis, and remained well below pre-pandemic levels despite the impacts of the CDK outage.

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

  • Domestic Segment Income – was $188 million compared to the year-ago segment income of $342 million. Revenues of $5.3 billion decreased 9%.
  • Import Segment Income – was $356 million compared to the year-ago segment income of $498 million. Revenues of $6.0 billion increased 3%.
  • Premium Luxury Segment Income – was $468 million compared to the year-ago segment income of $641 million. Revenues of $7.2 billion decreased 5%.

Capital Allocation, Liquidity, Leverage and Portfolio Actions
During the quarter, AutoNation repurchased 36 thousand shares of common stock for an aggregate purchase price of $6 million. Year-to-date through October 23, 2024, AutoNation repurchased 2.2 million shares for an aggregate purchase price of $356 million. AutoNation has approximately $965 million remaining under its current share repurchase program. During the third quarter of 2024, the Company made capital expenditures of $81 million.

As of September 30, 2024, AutoNation had $1.6 billion of liquidity, including $60 million in cash and $1.5 billion of availability under its revolving credit facility, net of commercial paper borrowings. The Company's covenant leverage ratio was 2.53x at quarter end and the Company had $3.9 billion of non-vehicle debt outstanding.

During the quarter, AutoNation divested seven Domestic stores and one Import store, which represented a total of 11 franchises. As a result of these divestitures, the Company received net proceeds of $156 million and recognized a pre-tax gain of $53.9 million.

The third quarter conference call will begin at 9:00 a.m. Eastern Time and may be accessed by telephone at 833-470-1428 (Conference ID:356177) 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 October 25, 2024, through 11:59 p.m. Eastern Time on Friday, November 15, 2024, or by calling 866-813-9403 (Conference ID: 747579). 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, one of the largest automotive retailers in the United States, offers innovative products, exceptional services, and comprehensive solutions, and empowers its customers to make the best decisions for their needs. With a nationwide network of dealerships strengthened by a recognized brand, we offer a wide variety of new and used vehicles, customer financing, parts, and expert maintenance and repair services. Through DRV PNK, 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.

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," "estimates," "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 expectations for the future performance of our business and the automotive retail industry, including during the remainder of 2024, 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 maintain or improve gross profit margins; our ability to maintain or gain market share; legal, reputational, and financial risks resulting from cyber incidents and the potential impact on our operating results; the receipt of any insurance or other recoveries in connection with any cyber incidents; our ability to successfully implement and maintain expense controls; our ability to maintain and enhance our retail brands and reputation and to attract consumers to our own digital channels; economic conditions, including changes in unemployment, interest, and/or inflation rates, consumer demand, fuel prices, and tariffs; our ability to acquire and integrate successfully new acquisitions; restrictions imposed by vehicle manufacturers and our ability to obtain manufacturer approval for franchise acquisitions;  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 September 30,


Nine Months Ended September 30,



2024


2023


2024


2023

Revenue:









New vehicle


$               3,171.2


$               3,187.6


$              9,273.0


$              9,400.5

Used vehicle


1,901.4


2,172.1


5,808.6


6,292.7

Parts and service


1,170.9


1,157.4


3,460.4


3,392.5

Finance and insurance, net


335.4


369.5


994.1


1,071.4

Other


7.2


6.1


16.1


24.4

Total revenue


6,586.1


6,892.7


19,552.2


20,181.5

Cost of sales:









New vehicle


2,994.1


2,936.9


8,709.6


8,575.2

Used vehicle


1,790.2


2,044.3


5,474.5


5,876.2

Parts and service


612.7


611.6


1,809.8


1,793.1

Other


6.3


5.3


14.5


20.7

Total cost of sales


5,403.3


5,598.1


16,008.4


16,265.2

Gross profit


1,182.8


1,294.6


3,543.8


3,916.3

Selling, general, and administrative expenses


811.3


819.3


2,430.2


2,444.9

Depreciation and amortization


61.3


55.7


179.5


163.1

Other (income) expense, net(1)


(40.5)


0.1


(31.9)


6.3

Operating income


350.7


419.5


966.0


1,302.0

Non-operating income (expense) items:









Floorplan interest expense


(60.5)


(38.3)


(163.8)


(98.2)

Other interest expense


(44.9)


(48.8)


(136.3)


(135.9)

Other income (loss), net(2)


2.1


(5.0)


9.0


4.6

Income from continuing operations before income taxes


247.4


327.4


674.9


1,072.5

Income tax provision


61.6


83.7


168.8


268.5

Net income from continuing operations


185.8


243.7


506.1


804.0

Income from discontinued operations, net of income taxes


—


—


—


0.9

Net income


$                  185.8


$                  243.7


$                 506.1


$                 804.9

Diluted earnings per share(3):









Continuing operations


$                    4.61


$                    5.54


$                 12.31


$                 17.63

Discontinued operations


$                       —


$                       —


$                      —


$                   0.02

Net income


$                    4.61


$                    5.54


$                 12.31


$                 17.65

Weighted average common shares outstanding


40.3


44.0


41.1


45.6

Common shares outstanding, net of treasury stock, at
     period end


39.6


42.8


39.6


42.8



(1)

Includes net gains on business/property divestitures and results of our finance company, including expected credit loss expense and gains on asset sales, as well as gains on legal settlements and asset impairments. 

(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 September 30,


Nine Months Ended September 30,



2024


2023


$ Variance


% Variance


2024


2023


$ Variance


% Variance

Revenue:

















New vehicle


$    3,171.2


$    3,187.6


$       (16.4)


(0.5)


$    9,273.0


$    9,400.5


$     (127.5)


(1.4)

Retail used vehicle


1,741.4


2,025.1


(283.7)


(14.0)


5,318.7


5,858.4


(539.7)


(9.2)

Wholesale


160.0


147.0


13.0


8.8


489.9


434.3


55.6


12.8

Used vehicle


1,901.4


2,172.1


(270.7)


(12.5)


5,808.6


6,292.7


(484.1)


(7.7)

Finance and insurance, net


335.4


369.5


(34.1)


(9.2)


994.1


1,071.4


(77.3)


(7.2)

Total variable operations


5,408.0


5,729.2


(321.2)


(5.6)


16,075.7


16,764.6


(688.9)


(4.1)

Parts and service


1,170.9


1,157.4


13.5


1.2


3,460.4


3,392.5


67.9


2.0

Other


7.2


6.1


1.1




16.1


24.4


(8.3)



Total revenue


$    6,586.1


$    6,892.7


$     (306.6)


(4.4)


$   19,552.2


$   20,181.5


$     (629.3)


(3.1)

Gross profit:

















New vehicle


$       177.1


$       250.7


$       (73.6)


(29.4)


$        563.4


$        825.3


$     (261.9)


(31.7)

Retail used vehicle


105.6


126.6


(21.0)


(16.6)


314.7


398.3


(83.6)


(21.0)

Wholesale


5.6


1.2


4.4




19.4


18.2


1.2



Used vehicle


111.2


127.8


(16.6)


(13.0)


334.1


416.5


(82.4)


(19.8)

Finance and insurance


335.4


369.5


(34.1)


(9.2)


994.1


1,071.4


(77.3)


(7.2)

Total variable operations


623.7


748.0


(124.3)


(16.6)


1,891.6


2,313.2


(421.6)


(18.2)

Parts and service


558.2


545.8


12.4


2.3


1,650.6


1,599.4


51.2


3.2

Other


0.9


0.8


0.1




1.6


3.7


(2.1)



Total gross profit


1,182.8


1,294.6


(111.8)


(8.6)


3,543.8


3,916.3


(372.5)


(9.5)

Selling, general, and administrative
expenses


811.3


819.3


8.0


1.0


2,430.2


2,444.9


14.7


0.6

Depreciation and amortization


61.3


55.7


(5.6)




179.5


163.1


(16.4)



Other (income) expense, net


(40.5)


0.1


40.6




(31.9)


6.3


38.2



Operating income


350.7


419.5


(68.8)


(16.4)


966.0


1,302.0


(336.0)


(25.8)

Non-operating income (expense)
items:

















Floorplan interest expense


(60.5)


(38.3)


(22.2)




(163.8)


(98.2)


(65.6)



Other interest expense


(44.9)


(48.8)


3.9




(136.3)


(135.9)


(0.4)



Other income (loss), net


2.1


(5.0)


7.1




9.0


4.6


4.4



Income from continuing operations
before income taxes


$       247.4


$       327.4


$       (80.0)


(24.4)


$       674.9


$    1,072.5


$     (397.6)


(37.1)


















Retail vehicle unit sales:

















New


63,150


62,289


861


1.4


183,281


179,798


3,483


1.9

Used


66,454


72,517


(6,063)


(8.4)


201,079


208,868


(7,789)


(3.7)



129,604


134,806


(5,202)


(3.9)


384,360


388,666


(4,306)


(1.1)


















Revenue per vehicle retailed:

















New


$     50,217


$     51,174


$        (957)


(1.9)


$     50,594


$     52,284


$     (1,690)


(3.2)

Used


$     26,205


$     27,926


$     (1,721)


(6.2)


$     26,451


$     28,048


$     (1,597)


(5.7)


















Gross profit per vehicle retailed:

















New


$       2,804


$       4,025


$     (1,221)


(30.3)


$       3,074


$       4,590


$     (1,516)


(33.0)

Used


$       1,589


$       1,746


$        (157)


(9.0)


$       1,565


$       1,907


$        (342)


(17.9)

Finance and insurance


$       2,588


$       2,741


$        (153)


(5.6)


$       2,586


$       2,757


$        (171)


(6.2)

Total variable operations(1)


$       4,769


$       5,540


$        (771)


(13.9)


$       4,871


$       5,905


$     (1,034)


(17.5)



(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 September 30,


Nine Months Ended September 30,



2024 ( %)


2023 ( %)


2024 ( %)


2023 ( %)

Revenue mix percentages:









New vehicle


48.1


46.2


47.4


46.6

Used vehicle


28.9


31.5


29.7


31.2

Parts and service


17.8


16.8


17.7


16.8

Finance and insurance, net


5.1


5.4


5.1


5.3

Other


0.1


0.1


0.1


0.1



100.0


100.0


100.0


100.0

Gross profit mix percentages:









New vehicle


15.0


19.4


15.9


21.1

Used vehicle


9.4


9.9


9.4


10.6

Parts and service


47.2


42.2


46.6


40.8

Finance and insurance


28.4


28.5


28.1


27.4

Other


—


—


—


0.1



100.0


100.0


100.0


100.0

Operating items as a percentage of revenue:









Gross profit:









New vehicle


5.6


7.9


6.1


8.8

Used vehicle - retail


6.1


6.3


5.9


6.8

Parts and service


47.7


47.2


47.7


47.1

Total


18.0


18.8


18.1


19.4

Selling, general, and administrative expenses


12.3


11.9


12.4


12.1

Operating income


5.3


6.1


4.9


6.5

Operating items as a percentage of total gross profit:









Selling, general, and administrative expenses


68.6


63.3


68.6


62.4

Operating income


29.6


32.4


27.3


33.2

 

AUTONATION, INC.

UNAUDITED SUPPLEMENTARY DATA

($ in millions)


 Segment Operating Highlights


Three Months Ended September 30,


Nine Months Ended September 30,



2024


2023


$ Variance


% Variance


2024


2023


$ Variance


% Variance

Revenue:

















Domestic


$    1,774.9


$    1,983.9


$     (209.0)


(10.5)


$    5,271.0


$    5,770.5


$     (499.5)


(8.7)

Import


2,046.2


2,077.2


(31.0)


(1.5)


6,044.5


5,864.2


180.3


3.1

Premium luxury


2,426.0


2,516.1


(90.1)


(3.6)


7,239.3


7,621.5


(382.2)


(5.0)

Total


6,247.1


6,577.2


(330.1)


(5.0)


18,554.8


19,256.2


(701.4)


(3.6)

Corporate and other


339.0


315.5


23.5


7.4


997.4


925.3


72.1


7.8

Total consolidated revenue


$    6,586.1


$    6,892.7


$     (306.6)


(4.4)


$   19,552.2


$   20,181.5


$     (629.3)


(3.1)


















Segment income*:

















Domestic


$         62.4


$       107.2


$       (44.8)


(41.8)


$        187.9


$        341.5


$     (153.6)


(45.0)

Import


119.2


164.7


(45.5)


(27.6)


356.2


498.1


(141.9)


(28.5)

Premium luxury


154.7


192.9


(38.2)


(19.8)


468.2


641.2


(173.0)


(27.0)

Total


336.3


464.8


(128.5)


(27.6)


1,012.3


1,480.8


(468.5)


(31.6)

Corporate and other


(46.1)


(83.6)


37.5




(210.1)


(277.0)


66.9



Add: Floorplan interest expense


60.5


38.3


22.2




163.8


98.2


65.6



Operating income


$       350.7


$       419.5


$       (68.8)


(16.4)


$        966.0


$     1,302.0


$     (336.0)


(25.8)

* 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


17,583


17,766


(183)


(1.0)


50,068


51,110


(1,042)


(2.0)

Import


28,865


28,232


633


2.2


85,162


78,502


6,660


8.5

Premium luxury


16,702


16,291


411


2.5


48,051


50,186


(2,135)


(4.3)



63,150


62,289


861


1.4


183,281


179,798


3,483


1.9


















Retail used vehicle unit sales:

















Domestic


18,681


22,406


(3,725)


(16.6)


57,178


64,914


(7,736)


(11.9)

Import


22,851


24,548


(1,697)


(6.9)


69,188


69,241


(53)


(0.1)

Premium luxury


17,876


19,710


(1,834)


(9.3)


54,608


57,409


(2,801)


(4.9)

Other


7,046


5,853


1,193


20.4


20,105


17,304


2,801


16.2



66,454


72,517


(6,063)


(8.4)


201,079


208,868


(7,789)


(3.7)


















Brand Mix - Retail New Vehicle
Units Sold


Three Months Ended


Nine Months Ended










September 30,


September 30,











2024 ( %)


2023 ( %)


2024 ( %)


2023 ( %)









Domestic:

















Ford, Lincoln


11.3


10.5


11.0


10.9









Chevrolet, Buick, Cadillac, GMC


11.4


10.8


10.9


10.4









Chrysler, Dodge, Jeep, Ram


5.1


7.2


5.4


7.1









Domestic total


27.8


28.5


27.3


28.4









Import:

















Toyota


19.4


19.9


20.7


18.7









Honda


13.6


12.4


13.4


12.8









Nissan


1.8


2.2


1.9


2.2









Hyundai


3.9


3.4


3.7


3.4









Subaru


4.1


4.1


3.9


3.5









Other Import


3.0


3.3


2.9


3.1









Import total


45.8


45.3


46.5


43.7









Premium Luxury:

















Mercedes-Benz


9.7


8.5


8.8


9.3









BMW


8.0


8.4


8.5


9.1









Lexus


3.3


2.8


3.5


3.0









Audi


2.1


2.9


2.1


2.7









Jaguar Land Rover


1.9


1.7


2.0


1.8









Other Premium Luxury


1.4


1.9


1.3


2.0









Premium Luxury total


26.4


26.2


26.2


27.9











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,



2024


2023


2024


2023

Capital expenditures


$                81.0


$                87.0


$              262.2


$              286.0

Cash paid for acquisitions, net of cash acquired


$                   —


$                  2.2


$                   —


$              271.1

Cash received from divestitures, net of cash relinquished


$              156.0


$                   —


$              156.0


$                   —

Stock repurchases:









Aggregate purchase price (1)


$                  5.6


$              200.0


$              355.6


$              712.4

Shares repurchased (in millions)


—


1.3


2.2


5.3

 

New Vehicle Floorplan Assistance and Expense


Three Months Ended September 30,


Nine Months Ended September 30,



2024


2023


Variance


2024


2023


Variance

Floorplan assistance earned (included in cost of sales)


$       38.2


$       31.5


$         6.7


$     101.6


$       92.1


$         9.5

New vehicle floorplan interest expense


(58.5)


(35.1)


(23.4)


(157.4)


(89.1)


(68.3)

Net new vehicle inventory carrying benefit (expense)


$     (20.3)


$       (3.6)


$     (16.7)


$     (55.8)


$         3.0


$     (58.8)

 

Balance Sheet and Other Highlights


September 30, 2024


December 31, 2023


September 30, 2023

Cash and cash equivalents


$                    60.2


$                    60.8


$                    64.0

Inventory


$               3,530.8


$               3,033.4


$               2,645.6

Floorplan notes payable


$               3,805.2


$               3,382.4


$               2,814.8

Non-recourse debt


$                  645.9


$                  258.4


$                  246.1

Non-vehicle debt


$               3,934.5


$               4,030.3


$               3,942.4

Equity


$               2,371.2


$               2,211.4


$               2,142.0








New days supply (industry standard of selling days)


52 days


36 days


31 days

Used days supply (trailing calendar month days)


36 days


39 days


33 days

 

Key Credit Agreement Covenant Compliance Calculations (2)



Leverage ratio


2.53x

Covenant

less than or equal to

3.75x


Interest coverage ratio


4.33x

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 September 30,



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

$      350.7


$      419.5


$      247.4


$      327.4


$        61.6


$        83.7


24.9 %


25.6 %


$      185.8


$      243.7





Discontinued operations, net of income taxes

















—


—





As reported

















$      185.8


$      243.7


$        4.61


$        5.54

Increase (decrease) in compensation expense
     related to market valuation changes in
     deferred compensation plans(4)

8.2


(3.7)


—


—


—


—






—


—


$           —


$           —

Net loss on equity investments

—


—


6.7


—


1.6


—






5.1


—


$        0.13


$           —

Self-insurance related losses(5)

5.7


—


5.7


—


1.4


—






4.3


—


$        0.11


$           —

Business/property-related items:
























Net gains on dispositions, net of asset
     impairments

(46.7)


—


(46.7)


—


(11.4)


—






(35.3)


—


$       (0.88)


$           —

Loss from operations resulting from
     dispositions

2.4


—


3.0


—


0.7


—






2.3


—


$        0.06


$           —

Adjusted

$      320.3


$      415.8


$      216.1


$      327.4


$        53.9


$        83.7


24.9 %


25.6 %


$      162.2


$      243.7


$        4.02


$        5.54




























Three Months Ended September 30,



















SG&A


SG&A as a Percentage
of Gross Profit (%)



















2024


2023


2024


2023

















As reported

$      811.3


$      819.3


68.6


63.3

















Excluding:
























Increase (decrease) in compensation expense
     related to market valuation changes in
     deferred compensation plans

8.2


(3.7)





















Self-insurance related losses

5.7


—





















Adjusted

$      797.4


$      823.0


67.4


63.6



















(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, the 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 (Loss), Net.

(5)

Primarily related to losses from hail storms and other natural catastrophes.

 

AUTONATION, INC.

UNAUDITED SUPPLEMENTARY DATA, Continued

($ in millions, except per share data)


Comparable Basis Reconciliations(1)


Nine Months Ended September 30,



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

$      966.0


$   1,302.0


$      674.9


$   1,072.5


$      168.8


$      268.5


25.0 %


25.0 %


$      506.1


$      804.0





Discontinued operations, net of income taxes

















—


0.9





As reported

















506.1


804.9


$      12.31


$      17.65

Increase (decrease) in compensation expense
     related to market valuation changes in
     deferred compensation plans(4)

16.3


6.3


—


—


—


—






—


—


$           —


$           —

Net loss on equity investments

—


—


6.7


—


1.6


—






5.1


—


$        0.12


$           —

One-time costs associated with CDK outage(5)

42.8


—


42.8


—


10.5


—






32.3


—


$        0.79


$           —

Self-insurance related losses(6)

5.7


16.5


5.7


16.5


1.4


4.1






4.3


12.4


$        0.10


$        0.27

Business/property-related items:
























Net gains on dispositions, net of asset
     impairments

(46.7)


—


(46.7)


—


(11.4)


—






(35.3)


—


$      (0.86)


$           —

Loss from operations resulting from
     dispositions

2.4


—


3.0


—


0.7


—






2.3


—


$        0.06


$           —

Adjusted

$      986.5


$   1,324.8


$      686.4


$   1,089.0


$      171.6


$      272.6


25.0 %


25.0 %


$      514.8


$      817.3


$      12.53


$      17.92




























Nine Months Ended September 30,



















SG&A


SG&A as a Percentage
of Gross Profit (%)



















2024


2023


2024


2023

















As reported

$   2,430.2


$   2,444.9


68.6


62.4

















Excluding:
























Increase (decrease) in compensation expense
     related to market valuation changes in
     deferred compensation plans

16.3


6.3





















One-time costs associated with CDK outage

42.8


—





















Self-insurance related losses

5.7


16.5





















Adjusted

$   2,365.4


$   2,422.1


66.7


61.8



















(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, the 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 (Loss), Net.

(5)

Represents certain one-time costs incurred associated with the CDK outage, principally consisting of compensation paid to commission-based associates to ensure business continuity.

(6)

Primarily related to losses from hail storms and other natural catastrophes.

 

AUTONATION, INC.

UNAUDITED SAME STORE DATA

($ in millions, except per vehicle data)


Operating Highlights


Three Months Ended September 30,


Nine Months Ended September 30,



2024


2023


$ Variance


% Variance


2024


2023


$ Variance


% Variance

Revenue:

















New vehicle


$    3,157.5


$    3,155.6


$           1.9


0.1


$    9,133.7


$    9,295.4


$     (161.7)


(1.7)

Retail used vehicle


1,689.5


1,989.4


(299.9)


(15.1)


5,098.9


5,744.6


(645.7)


(11.2)

Wholesale


151.9


144.4


7.5


5.2


464.4


424.8


39.6


9.3

Used vehicle


1,841.4


2,133.8


(292.4)


(13.7)


5,563.3


6,169.4


(606.1)


(9.8)

Finance and insurance, net


328.7


364.8


(36.1)


(9.9)


964.4


1,055.1


(90.7)


(8.6)

Total variable operations


5,327.6


5,654.2


(326.6)


(5.8)


15,661.4


16,519.9


(858.5)


(5.2)

Parts and service


1,151.5


1,122.2


29.3


2.6


3,352.9


3,286.7


66.2


2.0

Other


7.1


5.9


1.2




16.1


24.5


(8.4)



Total revenue


$    6,486.2


$    6,782.3


$     (296.1)


(4.4)


$   19,030.4


$   19,831.1


$     (800.7)


(4.0)

Gross profit:

















New vehicle


$       176.7


$       249.1


$       (72.4)


(29.1)


$       557.3


$       818.2


$     (260.9)


(31.9)

Retail used vehicle


103.8


124.8


(21.0)


(16.8)


305.3


391.6


(86.3)


(22.0)

Wholesale


6.4


1.4


5.0




21.7


18.5


3.2



Used vehicle


110.2


126.2


(16.0)


(12.7)


327.0


410.1


(83.1)


(20.3)

Finance and insurance


328.7


364.8


(36.1)


(9.9)


964.4


1,055.1


(90.7)


(8.6)

Total variable operations


615.6


740.1


(124.5)


(16.8)


1,848.7


2,283.4


(434.7)


(19.0)

Parts and service


550.6


533.1


17.5


3.3


1,607.3


1,562.0


45.3


2.9

Other


1.0


0.7


0.3




1.5


3.9


(2.4)



Total gross profit


$    1,167.2


$    1,273.9


$     (106.7)


(8.4)


$    3,457.5


$    3,849.3


$     (391.8)


(10.2)


















Retail vehicle unit sales:

















New


62,890


61,641


1,249


2.0


180,208


177,708


2,500


1.4

Used


64,071


71,023


(6,952)


(9.8)


191,151


204,179


(13,028)


(6.4)



126,961


132,664


(5,703)


(4.3)


371,359


381,887


(10,528)


(2.8)


















Revenue per vehicle retailed:

















New


$     50,207


$     51,193


$        (986)


(1.9)


$     50,684


$     52,307


$     (1,623)


(3.1)

Used


$     26,369


$     28,011


$     (1,642)


(5.9)


$     26,675


$     28,135


$     (1,460)


(5.2)


















Gross profit per vehicle retailed:

















New


$       2,810


$       4,041


$     (1,231)


(30.5)


$       3,093


$       4,604


$     (1,511)


(32.8)

Used


$       1,620


$       1,757


$        (137)


(7.8)


$       1,597


$       1,918


$        (321)


(16.7)

Finance and insurance


$       2,589


$       2,750


$        (161)


(5.9)


$       2,597


$       2,763


$        (166)


(6.0)

Total variable operations(1)


$       4,798


$       5,568


$        (770)


(13.8)


$       4,920


$       5,931


$     (1,011)


(17.0)



(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 September 30,


Nine Months Ended September 30,



2024 ( %)


2023 ( %)


2024 ( %)


2023 ( %)

Revenue mix percentages:









New vehicle


48.7


46.5


48.0


46.9

Used vehicle


28.4


31.5


29.2


31.1

Parts and service


17.8


16.5


17.6


16.6

Finance and insurance, net


5.1


5.4


5.1


5.3

Other


—


0.1


0.1


0.1



100.0


100.0


100.0


100.0

Gross profit mix percentages:









New vehicle


15.1


19.6


16.1


21.3

Used vehicle


9.4


9.9


9.5


10.7

Parts and service


47.2


41.8


46.5


40.6

Finance and insurance


28.2


28.6


27.9


27.4

Other


0.1


0.1


—


—



100.0


100.0


100.0


100.0

Operating items as a percentage of revenue:









Gross profit:









New vehicle


5.6


7.9


6.1


8.8

Used vehicle - retail


6.1


6.3


6.0


6.8

Parts and service


47.8


47.5


47.9


47.5

Total


18.0


18.8


18.2


19.4

 

AutoNation Logo (PRNewsfoto/AutoNation, Inc.)

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/autonation-reports-third-quarter-2024-results-302286769.html

SOURCE AutoNation, Inc.

FAQ

What was AutoNation's (AN) revenue in Q3 2024?

AutoNation reported revenue of $6.6 billion in Q3 2024, representing a 4% decrease from the same period last year.

How did AutoNation's (AN) EPS perform in Q3 2024?

AutoNation's Q3 2024 EPS was $4.61, or $4.02 on an adjusted basis, down from $5.54 in Q3 2023.

What was AutoNation's (AN) After-Sales gross profit in Q3 2024?

AutoNation achieved a record After-Sales gross profit of $558 million in Q3 2024, representing a 2% increase year-over-year.

How many shares did AutoNation (AN) repurchase in Q3 2024?

AutoNation repurchased 36,000 shares for an aggregate purchase price of $6 million during Q3 2024.

Stock AN logo
AutoNation, Inc.

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AN Rankings

#1115 Ranked by Market Cap
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AN Latest News

Oct 31, 2024
AutoNation Surprises Former Professional Ballerina and Two-Time Breast Cancer Survivor with $25,000 Donation During "The Drew Barrymore Show"
Oct 29, 2024
AutoNation Salutes Those Who Serve with Exclusive Vehicle Service Discounts for Veteran's Day
Oct 7, 2024
AutoNation Announces Third Quarter 2024 Earnings Conference Call and Audio Webcast Scheduled for Friday, October 25, 2024
Aug 12, 2024
Kerrigan Advisors Names Chris Gempton as Senior Vice President, Sell-Side Advisory, Opening the Firm’s First Florida Office
Jul 31, 2024
AutoNation Reports Second Quarter 2024 Results

AN Stock Data

6.42B
39.68M
17.24%
74.08%
5.45%
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