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About AutoNation, Inc.
AutoNation, Inc. (NYSE: AN) is a Fortune 200 company and one of the largest automotive retailers in the United States. With a network of over 250 dealerships across 21 states, AutoNation offers a comprehensive range of services, including sales of new and used vehicles, customer financing, parts distribution, and expert maintenance and repair services. The company represents 34 manufacturer brands and has a significant presence in Sunbelt metropolitan areas, positioning itself as a leader in the automotive retail sector.
Business Model and Revenue Streams
AutoNation operates a vertically integrated business model that captures value across the entire vehicle lifecycle. Its revenue streams are diversified across new vehicle sales, used vehicle retailing through its AutoNation USA stores, after-sales services, and customer financing via AutoNation Finance. New vehicle sales contribute nearly half of the company's revenue, while after-sales services, including maintenance and repair, represent a growing segment driven by customer retention initiatives. The company also generates revenue through its captive lending operations and parts distribution, further strengthening its financial ecosystem.
Competitive Positioning
AutoNation stands out in the competitive automotive retail landscape due to its scale, brand recognition, and customer-first approach. It competes with other large dealership groups and emerging online retailers by leveraging its extensive physical footprint and digital capabilities. The company's focus on innovation is evident in its investments in digital transformation and mobility solutions, enabling it to meet evolving consumer preferences. Its strategic partnerships, such as the U.S. Army's PaYS program, underscore its commitment to workforce development and community engagement.
Operational Excellence and Market Significance
AutoNation's operational strategy is built on delivering a seamless and personalized customer experience. Its ability to scale operations while maintaining high service standards has made it a trusted name in automotive retail. The company's focus on after-sales services and customer financial services ensures recurring revenue streams and enhances customer loyalty. By consistently adapting to market trends and technological advancements, AutoNation has maintained its position as a key player in the U.S. automotive industry.
Commitment to Social Responsibility
Beyond its business operations, AutoNation is deeply committed to making a positive societal impact. Through its DRV PNK initiative, the company has raised over $40 million for cancer-related causes, demonstrating its dedication to philanthropy and community support. AutoNation also prioritizes diversity and inclusion, employing over 1,000 veterans and fostering a workplace culture that values innovation and collaboration.
Future Outlook
AutoNation's strategic focus on digital transformation, used vehicle retailing, and after-sales services positions it well to navigate the evolving automotive landscape. Its investments in technology and partnerships highlight its adaptability and commitment to long-term growth. By aligning its operations with consumer needs and market dynamics, AutoNation continues to strengthen its competitive edge and deliver value to its stakeholders.
Urban Edge Properties (NYSE:UE) has appointed Norman K. Jenkins to its Board of Trustees, effective November 22, 2021. Jenkins brings over 25 years of real estate experience and currently serves as President and CEO of Capstone Development. He has previously held leadership roles at Marriott International, where he developed the Diversity Ownership Initiative. Urban Edge, based in the New York metropolitan area, manages 75 properties totaling 16.4 million square feet of gross leasable area. This leadership change aims to enhance stakeholder value.
AutoNation (NYSE: AN) announced the opening of its ninth AutoNation USA store in Phoenix Avondale, marking its second pre-owned vehicle store in the area. This expansion is part of a broader strategy to have over 130 AutoNation USA locations by 2026. The company emphasizes a customer-centric approach with competitive, haggle-free pricing through its 1Price Pre-Owned program. The new location will create 26 jobs and is linked to AutoNation's Drive Pink initiative, which has raised over $28 million for cancer research.
AutoNation (NYSE: AN) has partnered with the Dick Vitale Fund for Pediatric Cancer to raise funds for innovative pediatric cancer research this November. The initiative, part of their ongoing Drive Pink initiative, aims to combat cancer, having raised over $28 million since its inception. Customers at AutoNation locations can contribute through the Cash Register Challenge, with 100% of donations supporting pediatric cancer patients and research. AutoNation's commitment continues its mission to create a world without cancer, especially for children.
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.
On October 18, 2021, AutoNation (NYSE: AN) announced the opening of its second AutoNation USA store in Denver, furthering its expansion strategy. This store is part of a larger plan with five new stores opening in 2021 and an expected twelve more in 2022. By the end of 2026, AutoNation aims to operate over 130 AutoNation USA stores nationwide. The company is focused on enhancing customer experience through its 1Price Pre-Owned model and the 'We'll Buy Your Car' program, while also supporting cancer research through its Drive Pink initiative, which has raised over $28 million since 2013.
AutoNation (NYSE: AN) announced that it will release its Q3 2021 financial results on October 21, 2021. Management will discuss these results during a conference call at 10:00 a.m. ET. The call can be accessed via telephone or through AutoNation's investor relations website. As of September 30, 2021, AutoNation operates over 300 locations and has sold over 13 million vehicles, becoming the first automotive retailer to achieve this milestone.
AutoNation (NYSE: AN) continues its commitment to cancer awareness with its Drive Pink initiative, which has raised over $28 million since its inception. Marking the 6th Annual DRVPNK Across America Day, AutoNation will host events on October 12 and October 20, 2021, at DRV PNK Stadium, partnering with Inter Miami CF to support cancer patients. Participants will fill comfort bags and honor cancer survivors during a match, with the first 10,000 fans receiving free rally towels. AutoNation operates over 300 locations nationwide, emphasizing community support through its charitable initiatives.
AutoNation (NYSE: AN) announced the appointment of Mike Manley as its new Chief Executive Officer and Board member, effective November 1, 2021. He succeeds Mike Jackson, who is retiring after 22 years as CEO. Manley, previously CEO of Fiat Chrysler Automobiles, brings extensive automotive experience to the role. Under Jackson's leadership, AutoNation achieved significant milestones, including selling over 13 million vehicles and raising over $28 million for cancer research. The company is recognized for its exceptional performance and commitment to customer service.
On Sept. 15, 2021, AutoNation (NYSE: AN) announced the opening of its second pre-owned vehicle store, AutoNation USA Denver 104, as part of a plan to establish five such stores this year. By 2026, AutoNation aims to operate over 130 stores nationwide, focusing on a customer-centric approach to capture more market share in the used vehicle sector. The new store emphasizes low, haggle-free pricing and facilitates vehicle sales through its 'We'll Buy Your Car' program. AutoNation continues its philanthropic efforts through its Drive Pink initiative, which has raised over $28 million for cancer research.
AutoNation, Inc. (NYSE: AN) announced the pricing of $400 million senior unsecured notes due 2028 at 1.950% and $450 million senior unsecured notes due 2031 at 2.400%. The notes are expected to close on July 29, 2021. Proceeds will be utilized for general corporate purposes, including debt reduction and share repurchases. BofA Securities, J.P. Morgan, and others are managing the debt offering. AutoNation operates over 300 locations and has sold over 13 million vehicles.
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