Attached files
| file | filename |
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| 8-K - FORM 8-K - AUTONATION, INC. | an8k93011.htm |
Exhibit 99.1
 | Contact: Marc Cannon (954) 769-3146 cannonm@autonation.com Investor contact: Cheryl Scully (954) 769-7734 scullyc@autonation.com Kate Keyser-Pearlman (954) 769-7342 keyserk1@autonation.com | |||
AutoNation Reports Record Third Quarter Results
• | EPS from continuing operations was $0.48, a record for third quarter results, up 23% compared to $0.39 in third quarter 2010 |
• | Operating income of $144.1 million, an increase of 19% compared to the year-ago period |
• | Retail new vehicle gross profit up 24% compared to the year-ago period |
• | AutoNation repurchased 7.2 million shares from July 1, 2011 through October 19, 2011, for an aggregate purchase price of $247.7 million; AutoNation today announced that the Board of Directors increased share repurchase authorization by $250 million. |
• | Total revenue up 7% compared to the year-ago period. Revenue for all major categories - new vehicles, used vehicles, parts and service, and finance and insurance - improved compared to the third quarter of 2010. |
FORT LAUDERDALE, Fla., (October 20, 2011) —AutoNation, Inc. (NYSE: AN), America’s largest automotive retailer, today reported 2011 third quarter net income from continuing operations of $71 million, or $0.48 per share, compared to net income from continuing operations of $59 million, or $0.39 per share, for the same period in the prior year, a 23% improvement on a per-share basis.
2011 third quarter revenue totaled $3.5 billion, compared to $3.3 billion in the year-ago period, an increase of 7%, driven primarily by higher new and used vehicle average selling prices. AutoNation’s new vehicle unit sales decreased 2% on a same store basis and were flat overall, as the Japanese earthquake affected availability of vehicles produced by Japanese manufacturers. Based on CNW Research data, in the third quarter, total U.S. industry new retail vehicle unit sales increased 1%.
AutoNation’s 2011 third quarter retail used vehicle revenue increased 7%. Parts and service revenue increased 2%, and finance and insurance revenue increased 9% compared to the 2010 third quarter.
2011 third quarter gross profit totaled $575 million, compared to $545 million in the year-ago period, an increase of 5%, primarily due to an increase in retail new vehicle gross profit, as well as an increase in finance and insurance gross profit. On a per-vehicle basis, gross profit per new vehicle retailed increased $460 or 23%, while finance and insurance gross profit per vehicle retailed increased $83 or 7%, as compared to the year-ago period.
Mike Jackson, Chairman and Chief Executive Officer, said, “We continued to deliver solid double-digit growth in operating income in the third quarter, which was driven by strong gross margins in new vehicles and finance and insurance.” Mr. Jackson added, “While shipments from the Japanese manufacturers improved in the third quarter, inventory levels of these vehicles remained constrained. We would expect that the improving supply environment will result in lower margins on these vehicles in the fourth quarter.”
Mr. Jackson concluded, “We believe that the new vehicle sales environment will continue to improve in the fourth quarter, and we remain optimistic about the long-term recovery of the U.S. auto market.”
AutoNation repurchased 7.2 million shares from July 1, 2011 through October 19, 2011, for an aggregate purchase price of $247.7 million. AutoNation today announced that the Board of Directors authorized the repurchase of up to an additional $250 million of AutoNation common stock. With the increased authorization, as of October 19, 2011, AutoNation had approximately $316 million remaining Board authorization for share repurchase.
AutoNation has three operating segments: Domestic, Import, and Premium Luxury. The Domestic segment is comprised of stores that sell vehicles manufactured by General Motors, Ford, and Chrysler; the Import segment is comprised of stores that sell vehicles manufactured primarily by Toyota, Honda, and Nissan; and the Premium Luxury segment is comprised of stores that sell vehicles manufactured primarily by Mercedes, BMW, and Lexus. Segment results for the third quarter were as follows:
• | Domestic – Domestic segment income(1)was $47 million compared to year-ago segment income of $43 million. Third quarter Domestic retail new vehicle unit sales increased 12%. |
• | Import – Import segment income(1)was $65 million compared to year-ago segment income of $51 million. Third quarter Import retail new vehicle unit sales decreased (10)%. |
• | Premium Luxury – Premium Luxury segment income(1)was $50 million compared to year-ago segment income of $48 million. Third quarter Premium Luxury retail new vehicle unit sales increased 11%. |
For the nine-month period ended September 30, 2011, the Company reported net income from continuing operations of $214 million, or $1.43 per share, compared to adjusted net income from continuing operations of $179 million, or $1.11 per share for the same period in the prior year, an improvement of 29% on a per-share basis. Adjusted net income from continuing operations for the nine-month period ended September 30, 2010 excludes debt refinancing costs of $12 million after-tax, or $0.07 per share, as disclosed in the attached financial tables. There were no adjusting items for the nine-month period ended September 30, 2011. On a GAAP basis, net income from continuing operations for the nine-month period ended September 30, 2010 was $167 million, or $1.04 per share. The Company’s revenue for the nine-month period ended September 30, 2011, totaled $10.2 billion, up 10% compared to $9.2 billion for the same period in the prior year.
The third quarter conference call may be accessed by telephone at (888)-769-8515 (password: AutoNation). The webcast will be available on AutoNation’s investor relations website at investors.autonation.com under “Webcasts & Presentations.” A playback of the conference call will be available after 1:00 p.m. Eastern Time on October 20, 2011 through October 27, 2011 by calling (866) 463-2174 (password: 75300).
(1) | Segment income is defined as operating income less floorplan interest expense. |
About AutoNation, Inc.
AutoNation, Inc., headquartered in Fort Lauderdale, Fla., is America’s largest automotive retailer. A component of the Standard and Poor’s 500 Index, AutoNation owned and operated 257 new vehicle franchises in 15 states as of September 30, 2011. For additional information, please visit investors.autonation.com or www.AutoNation.com.
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,” “plans,” “believes,” “continues,” “may,” “will,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Statements regarding our expectations for the automotive retail industry, including statements regarding the impact on our business of the earthquake and tsunami that struck Japan, as well as 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 generally; conditions in the credit markets and changes in interest rates; the success and financial viability of vehicle manufacturers and distributors with which we hold franchises; the duration and severity of production and supply chain disruptions resulting from the natural disasters in Japan; factors affecting our goodwill and other intangible asset impairment testing; natural disasters and other adverse weather events; restrictions imposed by vehicle manufacturers; the resolution of legal and administrative proceedings; regulatory factors affecting our business; 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.
NON-GAAP FINANCIAL MEASURES
This press release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as adjusted net income and earnings per share from continuing operations, 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 from its core business operations 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.
AUTONATION, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenue: | |||||||||||||||
New vehicle | $ | 1,881.6 | $ | 1,773.3 | $ | 5,413.3 | $ | 4,890.4 | |||||||
Used vehicle | 911.9 | 812.4 | 2,630.6 | 2,327.7 | |||||||||||
Parts and service | 578.0 | 564.1 | 1,720.0 | 1,648.9 | |||||||||||
Finance and insurance, net | 121.9 | 111.9 | 349.6 | 311.9 | |||||||||||
Other | 13.1 | 12.2 | 40.4 | 35.9 | |||||||||||
Total revenue | 3,506.5 | 3,273.9 | 10,153.9 | 9,214.8 | |||||||||||
Cost of sales: | |||||||||||||||
New vehicle | 1,743.4 | 1,661.4 | 5,013.1 | 4,566.7 | |||||||||||
Used vehicle | 845.4 | 743.2 | 2,407.4 | 2,122.7 | |||||||||||
Parts and service | 336.1 | 318.5 | 988.4 | 927.3 | |||||||||||
Other | 6.4 | 5.4 | 20.2 | 15.1 | |||||||||||
Total cost of sales | 2,931.3 | 2,728.5 | 8,429.1 | 7,631.8 | |||||||||||
Gross profit | 575.2 | 545.4 | 1,724.8 | 1,583.0 | |||||||||||
Selling, general and administrative expenses | 411.4 | 402.9 | 1,236.7 | 1,159.4 | |||||||||||
Depreciation and amortization | 20.9 | 18.7 | 62.7 | 57.2 | |||||||||||
Other expenses (income), net | (1.2 | ) | 2.9 | (3.1 | ) | 4.5 | |||||||||
Operating income | 144.1 | 120.9 | 428.5 | 361.9 | |||||||||||
Floorplan interest expense | (9.7 | ) | (10.8 | ) | (31.8 | ) | (30.2 | ) | |||||||
Other interest expense | (16.4 | ) | (16.1 | ) | (48.6 | ) | (39.8 | ) | |||||||
Loss on debt extinguishment | — | — | — | (19.6 | ) | ||||||||||
Interest income | — | 0.3 | 0.6 | 0.8 | |||||||||||
Other losses, net | (2.4 | ) | (0.7 | ) | (0.2 | ) | (1.1 | ) | |||||||
Income from continuing operations before income taxes | 115.6 | 93.6 | 348.5 | 272.0 | |||||||||||
Income tax provision | 44.9 | 35.1 | 134.2 | 104.8 | |||||||||||
Net income from continuing operations | 70.7 | 58.5 | 214.3 | 167.2 | |||||||||||
Loss from discontinued operations, net of income taxes | — | (1.6 | ) | (2.3 | ) | (7.9 | ) | ||||||||
Net income | $ | 70.7 | $ | 56.9 | $ | 212.0 | $ | 159.3 | |||||||
Diluted earnings (loss) per share: | |||||||||||||||
Continuing operations | $ | 0.48 | $ | 0.39 | $ | 1.43 | $ | 1.04 | |||||||
Discontinued operations | $ | — | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.05 | ) | ||||
Net income | $ | 0.48 | $ | 0.38 | $ | 1.42 | $ | 0.99 | |||||||
Weighted average common shares outstanding | 147.0 | 149.6 | 149.5 | 161.4 | |||||||||||
Common shares outstanding, net of treasury stock, at September 30 | 141.4 | 148.0 | 141.4 | 148.0 | |||||||||||
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions, except per vehicle data)
Operating Highlights | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2011 | 2010 | $ Variance | % Variance | 2011 | 2010 | $ Variance | % Variance | ||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
New vehicle | $ | 1,881.6 | $ | 1,773.3 | $ | 108.3 | 6.1 | $ | 5,413.3 | $ | 4,890.4 | $ | 522.9 | 10.7 | |||||||||||||||
Retail used vehicle | 780.5 | 732.5 | 48.0 | 6.6 | 2,293.9 | 2,079.1 | 214.8 | 10.3 | |||||||||||||||||||||
Wholesale | 131.4 | 79.9 | 51.5 | 64.5 | 336.7 | 248.6 | 88.1 | 35.4 | |||||||||||||||||||||
Used vehicle | 911.9 | 812.4 | 99.5 | 12.2 | 2,630.6 | 2,327.7 | 302.9 | 13.0 | |||||||||||||||||||||
Parts and service | 578.0 | 564.1 | 13.9 | 2.5 | 1,720.0 | 1,648.9 | 71.1 | 4.3 | |||||||||||||||||||||
Finance and insurance, net | 121.9 | 111.9 | 10.0 | 8.9 | 349.6 | 311.9 | 37.7 | 12.1 | |||||||||||||||||||||
Other | 13.1 | 12.2 | 0.9 | 40.4 | 35.9 | 4.5 | |||||||||||||||||||||||
Total revenue | $ | 3,506.5 | $ | 3,273.9 | $ | 232.6 | 7.1 | $ | 10,153.9 | $ | 9,214.8 | $ | 939.1 | 10.2 | |||||||||||||||
Gross profit: | |||||||||||||||||||||||||||||
New vehicle | $ | 138.2 | $ | 111.9 | $ | 26.3 | 23.5 | $ | 400.2 | $ | 323.7 | $ | 76.5 | 23.6 | |||||||||||||||
Retail used vehicle | 67.4 | 67.9 | (0.5 | ) | (0.7 | ) | 218.3 | 196.9 | 21.4 | 10.9 | |||||||||||||||||||
Wholesale | (0.9 | ) | 1.3 | (2.2 | ) | 4.9 | 8.1 | (3.2 | ) | ||||||||||||||||||||
Used vehicle | 66.5 | 69.2 | (2.7 | ) | (3.9 | ) | 223.2 | 205.0 | 18.2 | 8.9 | |||||||||||||||||||
Parts and service | 241.9 | 245.6 | (3.7 | ) | (1.5 | ) | 731.6 | 721.6 | 10.0 | 1.4 | |||||||||||||||||||
Finance and insurance | 121.9 | 111.9 | 10.0 | 8.9 | 349.6 | 311.9 | 37.7 | 12.1 | |||||||||||||||||||||
Other | 6.7 | 6.8 | (0.1 | ) | 20.2 | 20.8 | (0.6 | ) | |||||||||||||||||||||
Total gross profit | 575.2 | 545.4 | 29.8 | 5.5 | 1,724.8 | 1,583.0 | 141.8 | 9.0 | |||||||||||||||||||||
Selling, general and administrative expenses | 411.4 | 402.9 | (8.5 | ) | (2.1 | ) | 1,236.7 | 1,159.4 | (77.3 | ) | (6.7 | ) | |||||||||||||||||
Depreciation and amortization | 20.9 | 18.7 | (2.2 | ) | 62.7 | 57.2 | (5.5 | ) | |||||||||||||||||||||
Other expenses (income), net | (1.2 | ) | 2.9 | 4.1 | (3.1 | ) | 4.5 | 7.6 | |||||||||||||||||||||
Operating income | 144.1 | 120.9 | 23.2 | 19.2 | 428.5 | 361.9 | 66.6 | 18.4 | |||||||||||||||||||||
Floorplan interest expense | (9.7 | ) | (10.8 | ) | 1.1 | (31.8 | ) | (30.2 | ) | (1.6 | ) | ||||||||||||||||||
Other interest expense | (16.4 | ) | (16.1 | ) | (0.3 | ) | (48.6 | ) | (39.8 | ) | (8.8 | ) | |||||||||||||||||
Loss on debt extinguishment | — | — | — | — | (19.6 | ) | 19.6 | ||||||||||||||||||||||
Interest income | — | 0.3 | (0.3 | ) | 0.6 | 0.8 | (0.2 | ) | |||||||||||||||||||||
Other losses, net | (2.4 | ) | (0.7 | ) | (1.7 | ) | (0.2 | ) | (1.1 | ) | 0.9 | ||||||||||||||||||
Income from continuing operations before income taxes | $ | 115.6 | $ | 93.6 | $ | 22.0 | 23.5 | $ | 348.5 | $ | 272.0 | $ | 76.5 | 28.1 | |||||||||||||||
Retail vehicle unit sales: | |||||||||||||||||||||||||||||
New | 56,309 | 56,121 | 188 | 0.3 | 163,843 | 153,305 | 10,538 | 6.9 | |||||||||||||||||||||
Used | 44,226 | 42,904 | 1,322 | 3.1 | 129,148 | 121,020 | 8,128 | 6.7 | |||||||||||||||||||||
100,535 | 99,025 | 1,510 | 1.5 | 292,991 | 274,325 | 18,666 | 6.8 | ||||||||||||||||||||||
Revenue per vehicle retailed: | |||||||||||||||||||||||||||||
New | $ | 33,416 | $ | 31,598 | $ | 1,818 | 5.8 | $ | 33,040 | $ | 31,900 | $ | 1,140 | 3.6 | |||||||||||||||
Used | $ | 17,648 | $ | 17,073 | $ | 575 | 3.4 | $ | 17,762 | $ | 17,180 | $ | 582 | 3.4 | |||||||||||||||
Gross profit per vehicle retailed: | |||||||||||||||||||||||||||||
New | $ | 2,454 | $ | 1,994 | $ | 460 | 23.1 | $ | 2,443 | $ | 2,111 | $ | 332 | 15.7 | |||||||||||||||
Used | $ | 1,524 | $ | 1,583 | $ | (59 | ) | (3.7 | ) | $ | 1,690 | $ | 1,627 | $ | 63 | 3.9 | |||||||||||||
Finance and insurance | $ | 1,213 | $ | 1,130 | $ | 83 | 7.3 | $ | 1,193 | $ | 1,137 | $ | 56 | 4.9 | |||||||||||||||
Operating Percentages | Three Months Ended September 30, | Nine Months Ended September 30, | |||||
2011 (%) | 2010 (%) | 2011 (%) | 2010 (%) | ||||
Revenue mix percentages: | |||||||
New vehicle | 53.7 | 54.2 | 53.3 | 53.1 | |||
Used vehicle | 26.0 | 24.8 | 25.9 | 25.3 | |||
Parts and service | 16.5 | 17.2 | 16.9 | 17.9 | |||
Finance and insurance, net | 3.5 | 3.4 | 3.4 | 3.4 | |||
Other | 0.3 | 0.4 | 0.5 | 0.3 | |||
100.0 | 100.0 | 100.0 | 100.0 | ||||
Gross profit mix percentages: | |||||||
New vehicle | 24.0 | 20.5 | 23.2 | 20.4 | |||
Used vehicle | 11.6 | 12.7 | 12.9 | 13.0 | |||
Parts and service | 42.1 | 45.0 | 42.4 | 45.6 | |||
Finance and insurance | 21.2 | 20.5 | 20.3 | 19.7 | |||
Other | 1.1 | 1.3 | 1.2 | 1.3 | |||
100.0 | 100.0 | 100.0 | 100.0 | ||||
Operating items as a percentage of revenue: | |||||||
Gross profit: | |||||||
New vehicle | 7.3 | 6.3 | 7.4 | 6.6 | |||
Used vehicle - retail | 8.6 | 9.3 | 9.5 | 9.5 | |||
Parts and service | 41.9 | 43.5 | 42.5 | 43.8 | |||
Total | 16.4 | 16.7 | 17.0 | 17.2 | |||
Selling, general and administrative expenses | 11.7 | 12.3 | 12.2 | 12.6 | |||
Operating income | 4.1 | 3.7 | 4.2 | 3.9 | |||
Operating items as a percentage of total gross profit: | |||||||
Selling, general and administrative expenses | 71.5 | 73.9 | 71.7 | 73.2 | |||
Operating income | 25.1 | 22.2 | 24.8 | 22.9 | |||
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions, except per vehicle data)
Segment Operating Highlights | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2011 | 2010 | $ Variance | % Variance | 2011 | 2010 | $ Variance | % Variance | ||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
Domestic | $ | 1,204.4 | $ | 1,102.6 | $ | 101.8 | 9.2 | $ | 3,445.5 | $ | 3,048.7 | $ | 396.8 | 13.0 | |||||||||||||||
Import | 1,318.3 | 1,275.1 | 43.2 | 3.4 | 3,829.0 | 3,523.9 | 305.1 | 8.7 | |||||||||||||||||||||
Premium luxury | 948.7 | 863.3 | 85.4 | 9.9 | 2,768.5 | 2,546.3 | 222.2 | 8.7 | |||||||||||||||||||||
Corporate and other | 35.1 | 32.9 | 2.2 | 6.7 | 110.9 | 95.9 | 15.0 | 15.6 | |||||||||||||||||||||
Total revenue | $ | 3,506.5 | $ | 3,273.9 | $ | 232.6 | 7.1 | $ | 10,153.9 | $ | 9,214.8 | $ | 939.1 | 10.2 | |||||||||||||||
*Segment income (loss) | |||||||||||||||||||||||||||||
Domestic | $ | 46.7 | $ | 42.5 | $ | 4.2 | 9.9 | $ | 135.8 | $ | 116.1 | $ | 19.7 | 17.0 | |||||||||||||||
Import | 65.0 | 51.3 | 13.7 | 26.7 | 187.9 | 153.6 | 34.3 | 22.3 | |||||||||||||||||||||
Premium luxury | 49.5 | 47.7 | 1.8 | 3.8 | 161.3 | 142.8 | 18.5 | 13.0 | |||||||||||||||||||||
Corporate and other | (26.8 | ) | (31.4 | ) | 4.6 | (88.3 | ) | (80.8 | ) | (7.5 | ) | ||||||||||||||||||
Total segment income | 134.4 | 110.1 | 24.3 | 22.1 | 396.7 | 331.7 | 65.0 | 19.6 | |||||||||||||||||||||
Add: Floorplan interest expense | 9.7 | 10.8 | (1.1 | ) | 31.8 | 30.2 | 1.6 | ||||||||||||||||||||||
Operating income | $ | 144.1 | $ | 120.9 | $ | 23.2 | 19.2 | $ | 428.5 | $ | 361.9 | $ | 66.6 | 18.4 | |||||||||||||||
* Segment income (loss) is defined as operating income less floorplan interest expense | |||||||||||||||||||||||||||||
Retail new vehicle unit sales: | |||||||||||||||||||||||||||||
Domestic | 19,789 | 17,635 | 2,154 | 12.2 | 56,276 | 47,762 | 8,514 | 17.8 | |||||||||||||||||||||
Import | 26,914 | 29,858 | (2,944 | ) | (9.9 | ) | 80,430 | 80,676 | (246 | ) | (0.3 | ) | |||||||||||||||||
Premium luxury | 9,606 | 8,628 | 978 | 11.3 | 27,137 | 24,867 | 2,270 | 9.1 | |||||||||||||||||||||
56,309 | 56,121 | 188 | 0.3 | 163,843 | 153,305 | 10,538 | 6.9 | ||||||||||||||||||||||
Brand Mix - New Vehicle Retail Units Sold | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2011 (%) | 2010 (%) | 2011 (%) | 2010 (%) | ||||||||||||||||||||||||||
Domestic: | |||||||||||||||||||||||||||||
Ford, Lincoln | 19.4 | 17.2 | 18.7 | 16.9 | |||||||||||||||||||||||||
Chevrolet, Buick, Cadillac, GMC | 12.2 | 11.4 | 12.4 | 11.7 | |||||||||||||||||||||||||
Chrysler, Jeep, Dodge | 3.5 | 2.8 | 3.2 | 2.6 | |||||||||||||||||||||||||
Domestic total | 35.1 | 31.4 | 34.3 | 31.2 | |||||||||||||||||||||||||
Import: | |||||||||||||||||||||||||||||
Honda | 9.1 | 12.7 | 11.1 | 13.6 | |||||||||||||||||||||||||
Toyota | 18.1 | 20.9 | 18.2 | 19.5 | |||||||||||||||||||||||||
Nissan | 12.7 | 12.3 | 11.9 | 12.5 | |||||||||||||||||||||||||
Other imports | 7.9 | 7.3 | 7.9 | 7.0 | |||||||||||||||||||||||||
Import total | 47.8 | 53.2 | 49.1 | 52.6 | |||||||||||||||||||||||||
Premium Luxury: | |||||||||||||||||||||||||||||
Mercedes-Benz | 8.1 | 7.4 | 7.7 | 7.8 | |||||||||||||||||||||||||
BMW | 5.2 | 4.4 | 4.9 | 4.5 | |||||||||||||||||||||||||
Lexus | 2.0 | 2.2 | 1.9 | 2.5 | |||||||||||||||||||||||||
Other premium luxury (Land Rover, Porsche) | 1.8 | 1.4 | 2.1 | 1.4 | |||||||||||||||||||||||||
Premium Luxury total | 17.1 | 15.4 | 16.6 | 16.2 | |||||||||||||||||||||||||
100.0 | 100.0 | 100.0 | 100.0 | ||||||||||||||||||||||||||
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA, Continued
($ in millions, except per share data)
Capital Expenditures / Stock Repurchases | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Capital expenditures (1) | $ | 50.0 | $ | 40.0 | $ | 113.6 | $ | 80.3 | |||||||
Acquisitions | $ | — | $ | 60.6 | $ | 64.2 | $ | 73.1 | |||||||
Proceeds from exercises of stock options | $ | 26.3 | $ | 24.5 | $ | 66.3 | $ | 30.1 | |||||||
Stock repurchases: | |||||||||||||||
Aggregate purchase price | $ | 195.9 | $ | 55.0 | $ | 365.6 | $ | 506.6 | |||||||
Shares repurchased (in millions) | 5.7 | 2.9 | 10.8 | 25.9 | |||||||||||
Floorplan Assistance and Expense | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2011 | 2010 | Variance | 2011 | 2010 | Variance | ||||||||||||||||||
Floorplan assistance earned (included in cost of sales) | $ | 15.7 | $ | 14.8 | $ | 0.9 | $ | 44.7 | $ | 41.2 | $ | 3.5 | |||||||||||
Floorplan interest expense (new vehicles) | (9.1 | ) | (10.1 | ) | 1.0 | (30.0 | ) | (28.6 | ) | (1.4 | ) | ||||||||||||
Net new vehicle inventory carrying benefit | $ | 6.6 | $ | 4.7 | $ | 1.9 | $ | 14.7 | $ | 12.6 | $ | 2.1 | |||||||||||
Balance Sheet and Other Highlights | September 30, 2011 | December 31, 2010 | September 30, 2010 | ||||||||
Cash and cash equivalents | $ | 67.3 | $ | 95.1 | $ | 84.5 | |||||
Inventory | $ | 1,601.7 | $ | 1,867.0 | $ | 1,739.8 | |||||
Total floorplan notes payable | $ | 1,511.3 | $ | 1,866.4 | $ | 1,632.8 | |||||
Non-vehicle debt | $ | 1,487.4 | $ | 1,348.7 | $ | 1,380.6 | |||||
Equity | $ | 2,024.9 | $ | 2,078.9 | $ | 2,005.2 | |||||
New days supply (industry standard of selling days, including fleet) | 45 days | 63 days | 57 days | ||||||||
Used days supply (trailing 30 days) | 43 days | 42 days | 46 days | ||||||||
Key Credit Agreement Covenant Compliance Calculations | ||
Ratio of funded indebtedness/ | ||
Adjusted EBITDA | 2.38x | |
Covenant | less than | 3.25x |
Ratio of funded indebtedness including floorplan/ | |||
Total capitalization including floorplan | 45.9 | % | |
Covenant | less than | 60.0 | % |
(1) Includes accrued construction in progress and excludes property acquired under capital leases.
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA, Continued
($ in millions, except per share data)
Comparable Basis Reconciliations* | Three Months Ended September 30, | ||||||||||||||
Net Income | Diluted Earnings Per Share** | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
As reported | $ | 70.7 | $ | 56.9 | $ | 0.48 | $ | 0.38 | |||||||
Discontinued operations, net of income taxes | — | 1.6 | $ | — | $ | 0.01 | |||||||||
From continuing operations, as reported | $ | 70.7 | $ | 58.5 | $ | 0.48 | $ | 0.39 | |||||||
Adjusted | $ | 70.7 | $ | 58.5 | $ | 0.48 | $ | 0.39 | |||||||
Nine Months Ended September 30, | |||||||||||||||
Net Income | Diluted Earnings Per Share** | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
As reported | $ | 212.0 | $ | 159.3 | $ | 1.42 | $ | 0.99 | |||||||
Discontinued operations, net of income taxes | 2.3 | 7.9 | $ | 0.02 | $ | 0.05 | |||||||||
From continuing operations, as reported | 214.3 | 167.2 | $ | 1.43 | $ | 1.04 | |||||||||
Loss on debt extinguishment | — | 12.1 | $ | — | $ | 0.07 | |||||||||
Adjusted | $ | 214.3 | $ | 179.3 | $ | 1.43 | $ | 1.11 | |||||||
* | Please refer to the "Non-GAAP Financial Measures" section of the Press Release. |
** | Earnings per share amounts are calculated discretely and therefore may not add up to the total. |
AUTONATION, INC.
UNAUDITED SAME STORE DATA
($ in millions, except per vehicle data)
Operating Highlights | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2011 | 2010 | $ Variance | % Variance | 2011 | 2010 | $ Variance | % Variance | ||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
New vehicle | $ | 1,835.7 | $ | 1,773.3 | $ | 62.4 | 3.5 | $ | 5,272.5 | $ | 4,890.4 | $ | 382.1 | 7.8 | |||||||||||||||
Retail used vehicle | 765.5 | 732.5 | 33.0 | 4.5 | 2,245.8 | 2,079.1 | 166.7 | 8.0 | |||||||||||||||||||||
Wholesale | 120.0 | 79.9 | 40.1 | 50.2 | 310.5 | 248.6 | 61.9 | 24.9 | |||||||||||||||||||||
Used vehicle | 885.5 | 812.4 | 73.1 | 9.0 | 2,556.3 | 2,327.7 | 228.6 | 9.8 | |||||||||||||||||||||
Parts and service | 569.4 | 564.1 | 5.3 | 0.9 | 1,685.1 | 1,648.9 | 36.2 | 2.2 | |||||||||||||||||||||
Finance and insurance, net | 119.3 | 111.9 | 7.4 | 6.6 | 341.7 | 311.9 | 29.8 | 9.6 | |||||||||||||||||||||
Other | 13.0 | 12.2 | 0.8 | 39.7 | 35.9 | 3.8 | |||||||||||||||||||||||
Total revenue | $ | 3,422.9 | $ | 3,273.9 | $ | 149.0 | 4.6 | $ | 9,895.3 | $ | 9,214.8 | $ | 680.5 | 7.4 | |||||||||||||||
Gross profit: | |||||||||||||||||||||||||||||
New vehicle | $ | 134.7 | $ | 111.9 | $ | 22.8 | 20.4 | $ | 389.4 | $ | 323.7 | $ | 65.7 | 20.3 | |||||||||||||||
Retail used vehicle | 66.4 | 67.9 | (1.5 | ) | (2.2 | ) | 213.8 | 196.9 | 16.9 | 8.6 | |||||||||||||||||||
Wholesale | (0.7 | ) | 1.3 | (2.0 | ) | 4.9 | 8.1 | (3.2 | ) | ||||||||||||||||||||
Used vehicle | 65.7 | 69.2 | (3.5 | ) | (5.1 | ) | 218.7 | 205.0 | 13.7 | 6.7 | |||||||||||||||||||
Parts and service | 237.9 | 245.6 | (7.7 | ) | (3.1 | ) | 715.6 | 721.6 | (6.0 | ) | (0.8 | ) | |||||||||||||||||
Finance and insurance | 119.3 | 111.9 | 7.4 | 6.6 | 341.7 | 311.9 | 29.8 | 9.6 | |||||||||||||||||||||
Other | 6.6 | 6.8 | (0.2 | ) | 19.7 | 20.8 | (1.1 | ) | |||||||||||||||||||||
Total gross profit | $ | 564.2 | $ | 545.4 | $ | 18.8 | 3.4 | $ | 1,685.1 | $ | 1,583.0 | $ | 102.1 | 6.4 | |||||||||||||||
Retail vehicle unit sales: | |||||||||||||||||||||||||||||
New | 54,844 | 56,121 | (1,277 | ) | (2.3 | ) | 158,983 | 153,305 | 5,678 | 3.7 | |||||||||||||||||||
Used | 43,414 | 42,904 | 510 | 1.2 | 126,339 | 121,020 | 5,319 | 4.4 | |||||||||||||||||||||
98,258 | 99,025 | (767 | ) | (0.8 | ) | 285,322 | 274,325 | 10,997 | 4.0 | ||||||||||||||||||||
Revenue per vehicle retailed: | |||||||||||||||||||||||||||||
New | $ | 33,471 | $ | 31,598 | $ | 1,873 | 5.9 | $ | 33,164 | $ | 31,900 | $ | 1,264 | 4.0 | |||||||||||||||
Used | $ | 17,633 | $ | 17,073 | $ | 560 | 3.3 | $ | 17,776 | $ | 17,180 | $ | 596 | 3.5 | |||||||||||||||
Gross profit per vehicle retailed: | |||||||||||||||||||||||||||||
New | $ | 2,456 | $ | 1,994 | $ | 462 | 23.2 | $ | 2,449 | $ | 2,111 | $ | 338 | 16.0 | |||||||||||||||
Used | $ | 1,529 | $ | 1,583 | $ | (54 | ) | (3.4 | ) | $ | 1,692 | $ | 1,627 | $ | 65 | 4.0 | |||||||||||||
Finance and insurance | $ | 1,214 | $ | 1,130 | $ | 84 | 7.4 | $ | 1,198 | $ | 1,137 | $ | 61 | 5.4 | |||||||||||||||
Operating Percentages | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2011 (%) | 2010 (%) | 2011 (%) | 2010 (%) | ||||||||||||||||||||||||||
Revenue mix percentages: | |||||||||||||||||||||||||||||
New vehicle | 53.6 | 54.2 | 53.3 | 53.1 | |||||||||||||||||||||||||
Used vehicle | 25.9 | 24.8 | 25.8 | 25.3 | |||||||||||||||||||||||||
Parts and service | 16.6 | 17.2 | 17.0 | 17.9 | |||||||||||||||||||||||||
Finance and insurance, net | 3.5 | 3.4 | 3.5 | 3.4 | |||||||||||||||||||||||||
Other | 0.4 | 0.4 | 0.4 | 0.3 | |||||||||||||||||||||||||
100.0 | 100.0 | 100.0 | 100.0 | ||||||||||||||||||||||||||
Gross profit mix percentages: | |||||||||||||||||||||||||||||
New vehicle | 23.9 | 20.5 | 23.1 | 20.4 | |||||||||||||||||||||||||
Used vehicle | 11.6 | 12.7 | 13.0 | 13.0 | |||||||||||||||||||||||||
Parts and service | 42.2 | 45.0 | 42.5 | 45.6 | |||||||||||||||||||||||||
Finance and insurance | 21.1 | 20.5 | 20.3 | 19.7 | |||||||||||||||||||||||||
Other | 1.2 | 1.3 | 1.1 | 1.3 | |||||||||||||||||||||||||
100.0 | 100.0 | 100.0 | 100.0 | ||||||||||||||||||||||||||
Operating items as a percentage of revenue: | |||||||||||||||||||||||||||||
Gross Profit: | |||||||||||||||||||||||||||||
New vehicle | 7.3 | 6.3 | 7.4 | 6.6 | |||||||||||||||||||||||||
Used vehicle - retail | 8.7 | 9.3 | 9.5 | 9.5 | |||||||||||||||||||||||||
Parts and service | 41.8 | 43.5 | 42.5 | 43.8 | |||||||||||||||||||||||||
Total | 16.5 | 16.7 | 17.0 | 17.2 | |||||||||||||||||||||||||