Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - AUTONATION, INC. | an8kearningsrelease63013.htm |
Exhibit 99.1
 | Contact: Marc Cannon (954) 769-3146 cannonm@autonation.com Investor contacts: Cheryl Scully (954) 769-7734 scullyc@autonation.com Robert Quartaro (954) 769-7342 quartaror@autonation.com | |||
AutoNation Reports All-Time Record Quarterly EPS
from Continuing Operations
• | EPS from continuing operations an all-time record $0.73, up 11% compared to second quarter 2012 adjusted EPS from continuing operations of $0.66 ($0.64 on a GAAP basis) |
• | Total revenue of $4.4 billion, up 13% compared to the year-ago period, increasing across all major business sectors; operating income of $181 million, an increase of 10% compared to the year-ago period |
• | Announced a Mercedes-Benz franchise in the Atlanta, Georgia market in addition to a Mercedes-Benz franchise in the Tampa, Florida market |
• | Completed rebranding initiative with AutoNation’s over 200 Domestic and Import franchises, representing 23 manufacturer brands, now marketed under a unified AutoNation brand from coast to coast |
FORT LAUDERDALE, Fla., (July 18, 2013) — AutoNation, Inc. (NYSE: AN), America’s largest automotive retailer, today reported 2013 second quarter net income from continuing operations of $90 million, or $0.73 per share, compared to adjusted net income from continuing operations of $82 million, or $0.66 per share, for the same period in the prior year, an 11% improvement on a per-share basis. On a GAAP basis, second quarter 2012 net income from continuing operations was $79 million, or $0.64 per share. Reconciliations of non-GAAP financial measures are included in the attached financial tables.
2013 second quarter revenue totaled $4.4 billion, compared to $3.9 billion in the year-ago period, an increase of 13%, driven by stronger performance in all of our business sectors - new vehicles, used vehicles, parts and service, and finance and insurance. AutoNation’s retail new vehicle unit sales increased 11% overall and 7% on a same store basis.
Mike Jackson, Chairman and Chief Executive Officer, said, “We delivered double-digit growth in operating income in the second quarter, driven by year-over-year gross profit growth in all of our business sectors.”
Commenting on the automotive retail environment, Mr. Jackson added, “The automotive industry continues to be a bright spot in the U.S. economy. We are particularly excited about our customer care business, where increasing units in operation should continue to support solid growth in the business for the next several years.”
AutoNation also announced that Mercedes-Benz has awarded a new franchise to AutoNation in the Atlanta, Georgia market and earlier in the second quarter announced the award of a new Mercedes-Benz franchise in the Tampa, Florida market that is expected to open in early 2015. The new Atlanta franchise, to be constructed by AutoNation, is subject to customary conditions and is expected to open in early 2015. This will be AutoNation’s 19th Mercedes-Benz franchise.
During the second quarter of 2013, AutoNation completed the acquisitions of SanTan Honda Superstore and Hyundai of Tempe in the Phoenix market, and Don Davis Toyota Scion in the Dallas market, now operating as AutoNation Honda Chandler, AutoNation Hyundai Tempe, and AutoNation Toyota North Arlington.
Over the previous 12 months, AutoNation has acquired 10 franchises and has been awarded four new franchises by manufacturers. The 2012 annual revenue for the 10 acquired franchises together with the anticipated annual revenue of the newly-awarded franchises, once the stores are fully operational, is approximately $1 billion.
Segment results(1) for the second quarter of 2013 were as follows:
• | Domestic – Domestic segment income(2) was $66 million compared to year-ago segment income of $54 million. |
• | Import – Import segment income(2) was $73 million compared to year-ago segment income of $67 million. |
• | Premium Luxury – Premium Luxury segment income(2) was $76 million compared to year-ago segment income of $68 million. |
For the six-month period ended June 30, 2013, the Company reported net income from continuing operations of $173 million, or $1.41 per share, compared to adjusted net income from continuing operations of $155 million, or $1.21 per share, for the same period in the prior year, an improvement of 17% on a per-share basis. On a GAAP basis, net income from continuing operations for the six-month period ended June 30, 2012 was $153 million, or $1.19 per share. Reconciliations of non-GAAP financial measures are included in the attached financial tables. The Company’s revenue for the six-month period ended June 30, 2013, totaled $8.5 billion, up 13% compared to $7.6 billion for the same period in the prior year.
The second quarter conference call may be accessed by telephone at (888) 769-8515 (password: AutoNation) at 11:00 a.m. Eastern Time or on AutoNation’s investor relations website at http://investors.autonation.com.
The webcast will also be available on our website under “Events & Presentations” following the call. A playback of the conference call will be available after 1:00 p.m. Eastern Time on July 18, 2013, through July 26, 2013 by calling (800)964-4597 (password 75300).
(1) | 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, Nissan, and Hyundai; and the Premium Luxury segment is comprised of stores that sell vehicles manufactured primarily by Mercedes-Benz, BMW, Lexus, and Audi. |
(2) | Segment income for each of our segments is defined as operating income less floorplan interest expense. |
About AutoNation, Inc.
AutoNation is transforming the automotive retail industry through bold leadership. We deliver a superior automotive retail experience through our customer-focused sales and service processes. Owning and operating 266 new vehicle franchises, which sell 32 brands across 15 states, AutoNation is America’s largest automotive retailer, with state-of-the-art operations and the ability to leverage economies of scale that benefit the customer. As an indication of our leadership position in our industry, AutoNation is a component of the S&P 500 Index.
Please visit investors.autonation.com, www.autonation.com, www.twitter.com/autonation, www.twitter.com/CEOMikeJackson, www.facebook.com/autonation, and www.facebook.com/CEOMikeJackson, where AutoNation discloses additional information about the Company, its business, and its results of operations.
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 future performance of our franchises and the automotive retail industry, 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: our ability to integrate successfully acquired and awarded franchises and to attain planned sales volumes within our expected time frames; 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; 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 INCOME STATEMENTS
($ in millions, except per share data)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenue: | ||||||||||||||||
New vehicle | $ | 2,493.6 | $ | 2,196.1 | $ | 4,751.3 | $ | 4,190.4 | ||||||||
Used vehicle | 1,056.5 | 947.4 | 2,066.2 | 1,866.2 | ||||||||||||
Parts and service | 655.9 | 602.5 | 1,292.5 | 1,202.4 | ||||||||||||
Finance and insurance, net | 173.9 | 145.1 | 329.5 | 275.3 | ||||||||||||
Other | 46.6 | 13.4 | 83.4 | 27.2 | ||||||||||||
Total revenue | 4,426.5 | 3,904.5 | 8,522.9 | 7,561.5 | ||||||||||||
Cost of sales: | ||||||||||||||||
New vehicle | 2,344.4 | 2,050.6 | 4,460.4 | 3,910.9 | ||||||||||||
Used vehicle | 972.4 | 870.3 | 1,896.1 | 1,708.0 | ||||||||||||
Parts and service | 375.7 | 349.1 | 740.0 | 698.8 | ||||||||||||
Other | 37.9 | 6.5 | 66.3 | 12.8 | ||||||||||||
Total cost of sales | 3,730.4 | 3,276.5 | 7,162.8 | 6,330.5 | ||||||||||||
Gross profit | 696.1 | 628.0 | 1,360.1 | 1,231.0 | ||||||||||||
Selling, general and administrative expenses | 494.1 | 438.6 | 967.4 | 871.5 | ||||||||||||
Depreciation and amortization | 23.3 | 20.8 | 46.0 | 42.0 | ||||||||||||
Franchise rights impairment | — | 4.2 | — | 4.2 | ||||||||||||
Other expenses (income), net | (2.2 | ) | 0.2 | (3.6 | ) | 0.4 | ||||||||||
Operating income | 180.9 | 164.2 | 350.3 | 312.9 | ||||||||||||
Non-operating income (expense) items: | ||||||||||||||||
Floorplan interest expense | (13.6 | ) | (10.8 | ) | (26.5 | ) | (21.5 | ) | ||||||||
Other interest expense | (22.0 | ) | (22.5 | ) | (44.3 | ) | (43.0 | ) | ||||||||
Interest income | — | 0.1 | 0.1 | 0.2 | ||||||||||||
Other income (loss), net | 1.3 | (1.4 | ) | 2.9 | 0.6 | |||||||||||
Income from continuing operations before income taxes | 146.6 | 129.6 | 282.5 | 249.2 | ||||||||||||
Income tax provision | 56.5 | 50.6 | 109.2 | 96.7 | ||||||||||||
Net income from continuing operations | 90.1 | 79.0 | 173.3 | 152.5 | ||||||||||||
Loss from discontinued operations, net of income taxes | (0.2 | ) | (0.4 | ) | (0.4 | ) | (0.9 | ) | ||||||||
Net income | $ | 89.9 | $ | 78.6 | $ | 172.9 | $ | 151.6 | ||||||||
Diluted earnings (loss) per share*: | ||||||||||||||||
Continuing operations | $ | 0.73 | $ | 0.64 | $ | 1.41 | $ | 1.19 | ||||||||
Discontinued operations | $ | — | $ | — | $ | — | $ | (0.01 | ) | |||||||
Net income | $ | 0.73 | $ | 0.64 | $ | 1.40 | $ | 1.18 | ||||||||
Weighted average common shares outstanding | 123.3 | 123.7 | 123.2 | 128.0 | ||||||||||||
Common shares outstanding, net of treasury stock, at period end | 121.3 | 120.6 | 121.3 | 120.6 | ||||||||||||
* Earnings per share amounts are calculated discretely and therefore may not add up to the total.
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions, except per vehicle data)
Operating Highlights | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
2013 | 2012 | $ Variance | % Variance | 2013 | 2012 | $ Variance | % Variance | |||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
New vehicle | $ | 2,493.6 | $ | 2,196.1 | $ | 297.5 | 13.5 | $ | 4,751.3 | $ | 4,190.4 | $ | 560.9 | 13.4 | ||||||||||||||||
Retail used vehicle | 954.0 | 829.5 | 124.5 | 15.0 | 1,853.2 | 1,630.6 | 222.6 | 13.7 | ||||||||||||||||||||||
Wholesale | 102.5 | 117.9 | (15.4 | ) | (13.1 | ) | 213.0 | 235.6 | (22.6 | ) | (9.6 | ) | ||||||||||||||||||
Used vehicle | 1,056.5 | 947.4 | 109.1 | 11.5 | 2,066.2 | 1,866.2 | 200.0 | 10.7 | ||||||||||||||||||||||
Finance and insurance, net | 173.9 | 145.1 | 28.8 | 19.8 | 329.5 | 275.3 | 54.2 | 19.7 | ||||||||||||||||||||||
Total variable operations | 3,724.0 | 3,288.6 | 435.4 | 13.2 | 7,147.0 | 6,331.9 | 815.1 | 12.9 | ||||||||||||||||||||||
Parts and service | 655.9 | 602.5 | 53.4 | 8.9 | 1,292.5 | 1,202.4 | 90.1 | 7.5 | ||||||||||||||||||||||
Other | 46.6 | 13.4 | 33.2 | 83.4 | 27.2 | 56.2 | ||||||||||||||||||||||||
Total revenue | $ | 4,426.5 | $ | 3,904.5 | $ | 522.0 | 13.4 | $ | 8,522.9 | $ | 7,561.5 | $ | 961.4 | 12.7 | ||||||||||||||||
Gross profit: | ||||||||||||||||||||||||||||||
New vehicle | $ | 149.2 | $ | 145.5 | $ | 3.7 | 2.5 | $ | 290.9 | $ | 279.5 | $ | 11.4 | 4.1 | ||||||||||||||||
Retail used vehicle | 83.3 | 75.1 | 8.2 | 10.9 | 166.7 | 153.6 | 13.1 | 8.5 | ||||||||||||||||||||||
Wholesale | 0.8 | 2.0 | (1.2 | ) | 3.4 | 4.6 | (1.2 | ) | ||||||||||||||||||||||
Used vehicle | 84.1 | 77.1 | 7.0 | 9.1 | 170.1 | 158.2 | 11.9 | 7.5 | ||||||||||||||||||||||
Finance and insurance | 173.9 | 145.1 | 28.8 | 19.8 | 329.5 | 275.3 | 54.2 | 19.7 | ||||||||||||||||||||||
Total variable operations | 407.2 | 367.7 | 39.5 | 10.7 | 790.5 | 713.0 | 77.5 | 10.9 | ||||||||||||||||||||||
Parts and service | 280.2 | 253.4 | 26.8 | 10.6 | 552.5 | 503.6 | 48.9 | 9.7 | ||||||||||||||||||||||
Other | 8.7 | 6.9 | 1.8 | 17.1 | 14.4 | 2.7 | ||||||||||||||||||||||||
Total gross profit | 696.1 | 628.0 | 68.1 | 10.8 | 1,360.1 | 1,231.0 | 129.1 | 10.5 | ||||||||||||||||||||||
Selling, general and administrative expenses | 494.1 | 438.6 | (55.5 | ) | (12.7 | ) | 967.4 | 871.5 | (95.9 | ) | (11.0 | ) | ||||||||||||||||||
Depreciation and amortization | 23.3 | 20.8 | (2.5 | ) | 46.0 | 42.0 | (4.0 | ) | ||||||||||||||||||||||
Franchise rights impairment | — | 4.2 | 4.2 | — | 4.2 | 4.2 | ||||||||||||||||||||||||
Other expenses (income), net | (2.2 | ) | 0.2 | 2.4 | (3.6 | ) | 0.4 | 4.0 | ||||||||||||||||||||||
Operating income | 180.9 | 164.2 | 16.7 | 10.2 | 350.3 | 312.9 | 37.4 | 12.0 | ||||||||||||||||||||||
Non-operating income (expense) items: | ||||||||||||||||||||||||||||||
Floorplan interest expense | (13.6 | ) | (10.8 | ) | (2.8 | ) | (26.5 | ) | (21.5 | ) | (5.0 | ) | ||||||||||||||||||
Other interest expense | (22.0 | ) | (22.5 | ) | 0.5 | (44.3 | ) | (43.0 | ) | (1.3 | ) | |||||||||||||||||||
Interest income | — | 0.1 | (0.1 | ) | 0.1 | 0.2 | (0.1 | ) | ||||||||||||||||||||||
Other income (loss), net | 1.3 | (1.4 | ) | 2.7 | 2.9 | 0.6 | 2.3 | |||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 146.6 | $ | 129.6 | $ | 17.0 | 13.1 | $ | 282.5 | $ | 249.2 | $ | 33.3 | 13.4 | ||||||||||||||||
Retail vehicle unit sales: | ||||||||||||||||||||||||||||||
New | 74,352 | 66,987 | 7,365 | 11.0 | 141,511 | 128,503 | 13,008 | 10.1 | ||||||||||||||||||||||
Used | 52,116 | 46,236 | 5,880 | 12.7 | 102,621 | 92,352 | 10,269 | 11.1 | ||||||||||||||||||||||
126,468 | 113,223 | 13,245 | 11.7 | 244,132 | 220,855 | 23,277 | 10.5 | |||||||||||||||||||||||
Revenue per vehicle retailed: | ||||||||||||||||||||||||||||||
New | $ | 33,538 | $ | 32,784 | $ | 754 | 2.3 | $ | 33,575 | $ | 32,609 | $ | 966 | 3.0 | ||||||||||||||||
Used | $ | 18,305 | $ | 17,941 | $ | 364 | 2.0 | $ | 18,059 | $ | 17,656 | $ | 403 | 2.3 | ||||||||||||||||
Gross profit per vehicle retailed: | ||||||||||||||||||||||||||||||
New | $ | 2,007 | $ | 2,172 | $ | (165 | ) | (7.6 | ) | $ | 2,056 | $ | 2,175 | $ | (119 | ) | (5.5 | ) | ||||||||||||
Used | $ | 1,598 | $ | 1,624 | $ | (26 | ) | (1.6 | ) | $ | 1,624 | $ | 1,663 | $ | (39 | ) | (2.3 | ) | ||||||||||||
Finance and insurance | $ | 1,375 | $ | 1,282 | $ | 93 | 7.3 | $ | 1,350 | $ | 1,247 | $ | 103 | 8.3 | ||||||||||||||||
Total variable operations(1) | $ | 3,213 | $ | 3,230 | $ | (17 | ) | (0.5 | ) | $ | 3,224 | $ | 3,208 | $ | 16 | 0.5 | ||||||||||||||
(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 June 30, | Six Months Ended June 30, | ||||||
2013 (%) | 2012 (%) | 2013 (%) | 2012 (%) | |||||
Revenue mix percentages: | ||||||||
New vehicle | 56.3 | 56.2 | 55.7 | 55.4 | ||||
Used vehicle | 23.9 | 24.3 | 24.2 | 24.7 | ||||
Parts and service | 14.8 | 15.4 | 15.2 | 15.9 | ||||
Finance and insurance, net | 3.9 | 3.7 | 3.9 | 3.6 | ||||
Other | 1.1 | 0.4 | 1.0 | 0.4 | ||||
100.0 | 100.0 | 100.0 | 100.0 | |||||
Gross profit mix percentages: | ||||||||
New vehicle | 21.4 | 23.2 | 21.4 | 22.7 | ||||
Used vehicle | 12.1 | 12.3 | 12.5 | 12.9 | ||||
Parts and service | 40.3 | 40.4 | 40.6 | 40.9 | ||||
Finance and insurance | 25.0 | 23.1 | 24.2 | 22.4 | ||||
Other | 1.2 | 1.0 | 1.3 | 1.1 | ||||
100.0 | 100.0 | 100.0 | 100.0 | |||||
Operating items as a percentage of revenue: | ||||||||
Gross profit: | ||||||||
New vehicle | 6.0 | 6.6 | 6.1 | 6.7 | ||||
Used vehicle - retail | 8.7 | 9.1 | 9.0 | 9.4 | ||||
Parts and service | 42.7 | 42.1 | 42.7 | 41.9 | ||||
Total | 15.7 | 16.1 | 16.0 | 16.3 | ||||
Selling, general and administrative expenses | 11.2 | 11.2 | 11.4 | 11.5 | ||||
Operating income | 4.1 | 4.2 | 4.1 | 4.1 | ||||
Operating items as a percentage of total gross profit: | ||||||||
Selling, general and administrative expenses | 71.0 | 69.8 | 71.1 | 70.8 | ||||
Operating income | 26.0 | 26.1 | 25.8 | 25.4 | ||||
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions)
Segment Operating Highlights | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||
2013 | 2012 | $ Variance | % Variance | 2013 | 2012 | $ Variance | % Variance | ||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
Domestic | $ | 1,515.3 | $ | 1,295.1 | $ | 220.2 | 17.0 | $ | 2,893.3 | $ | 2,524.2 | $ | 369.1 | 14.6 | |||||||||||||||
Import | 1,629.3 | 1,475.8 | 153.5 | 10.4 | 3,133.0 | 2,842.4 | 290.6 | 10.2 | |||||||||||||||||||||
Premium luxury | 1,242.4 | 1,093.4 | 149.0 | 13.6 | 2,415.3 | 2,115.6 | 299.7 | 14.2 | |||||||||||||||||||||
Total segment revenue | 4,387.0 | 3,864.3 | 522.7 | 13.5 | 8,441.6 | 7,482.2 | 959.4 | 12.8 | |||||||||||||||||||||
Corporate and other | 39.5 | 40.2 | (0.7 | ) | (1.7 | ) | 81.3 | 79.3 | 2.0 | 2.5 | |||||||||||||||||||
Total consolidated revenue | $ | 4,426.5 | $ | 3,904.5 | $ | 522.0 | 13.4 | $ | 8,522.9 | $ | 7,561.5 | $ | 961.4 | 12.7 | |||||||||||||||
*Segment income | |||||||||||||||||||||||||||||
Domestic | $ | 66.1 | $ | 53.6 | $ | 12.5 | 23.3 | $ | 124.7 | $ | 103.3 | $ | 21.4 | 20.7 | |||||||||||||||
Import | 72.9 | 67.2 | 5.7 | 8.5 | 143.9 | 129.1 | 14.8 | 11.5 | |||||||||||||||||||||
Premium luxury | 75.7 | 68.3 | 7.4 | 10.8 | 144.5 | 127.1 | 17.4 | 13.7 | |||||||||||||||||||||
Total segment income | 214.7 | 189.1 | 25.6 | 13.5 | 413.1 | 359.5 | 53.6 | 14.9 | |||||||||||||||||||||
Corporate and other | (47.4 | ) | (35.7 | ) | (11.7 | ) | (89.3 | ) | (68.1 | ) | (21.2 | ) | |||||||||||||||||
Add: Floorplan interest expense | 13.6 | 10.8 | 2.8 | 26.5 | 21.5 | 5.0 | |||||||||||||||||||||||
Operating income | $ | 180.9 | $ | 164.2 | $ | 16.7 | 10.2 | $ | 350.3 | $ | 312.9 | $ | 37.4 | 12.0 | |||||||||||||||
* Segment income for each of our segments is defined as operating income less floorplan interest expense | |||||||||||||||||||||||||||||
Retail new vehicle unit sales: | |||||||||||||||||||||||||||||
Domestic | 25,191 | 21,993 | 3,198 | 14.5 | 47,735 | 42,506 | 5,229 | 12.3 | |||||||||||||||||||||
Import | 36,444 | 33,715 | 2,729 | 8.1 | 69,476 | 64,753 | 4,723 | 7.3 | |||||||||||||||||||||
Premium luxury | 12,717 | 11,279 | 1,438 | 12.7 | 24,300 | 21,244 | 3,056 | 14.4 | |||||||||||||||||||||
74,352 | 66,987 | 7,365 | 11.0 | 141,511 | 128,503 | 13,008 | 10.1 | ||||||||||||||||||||||
Brand Mix - New Vehicle Retail Units Sold | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||
2013 (%) | 2012 (%) | 2013 (%) | 2012 (%) | ||||||||||||||||||||||||||
Domestic: | |||||||||||||||||||||||||||||
Ford, Lincoln | 17.8 | 17.6 | 18.0 | 17.9 | |||||||||||||||||||||||||
Chevrolet, Buick, Cadillac, GMC | 10.6 | 11.4 | 10.4 | 11.4 | |||||||||||||||||||||||||
Chrysler, Jeep, Dodge | 5.5 | 3.8 | 5.3 | 3.8 | |||||||||||||||||||||||||
Domestic total | 33.9 | 32.8 | 33.7 | 33.1 | |||||||||||||||||||||||||
Import: | |||||||||||||||||||||||||||||
Honda | 11.8 | 12.2 | 11.5 | 11.6 | |||||||||||||||||||||||||
Toyota | 19.9 | 21.2 | 20.0 | 20.6 | |||||||||||||||||||||||||
Nissan | 10.1 | 10.2 | 10.5 | 11.4 | |||||||||||||||||||||||||
Other imports | 7.2 | 6.8 | 7.1 | 6.8 | |||||||||||||||||||||||||
Import total | 49.0 | 50.4 | 49.1 | 50.4 | |||||||||||||||||||||||||
Premium Luxury: | |||||||||||||||||||||||||||||
Mercedes-Benz | 7.1 | 7.3 | 7.2 | 7.5 | |||||||||||||||||||||||||
BMW | 4.8 | 4.5 | 4.8 | 4.2 | |||||||||||||||||||||||||
Lexus | 2.1 | 2.0 | 2.1 | 2.0 | |||||||||||||||||||||||||
Audi | 1.2 | 0.8 | 1.2 | 0.8 | |||||||||||||||||||||||||
Other premium luxury (Land Rover, Porsche) | 1.9 | 2.2 | 1.9 | 2.0 | |||||||||||||||||||||||||
Premium Luxury total | 17.1 | 16.8 | 17.2 | 16.5 | |||||||||||||||||||||||||
100.0 | 100.0 | 100.0 | 100.0 | ||||||||||||||||||||||||||
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA, Continued
($ in millions)
Capital Expenditures / Stock Repurchases | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Capital expenditures (1) | $ | 31.5 | $ | 47.9 | $ | 54.6 | $ | 77.0 | ||||||||
Cash paid for acquisitions | $ | 69.7 | $ | — | $ | 72.5 | $ | — | ||||||||
Proceeds from exercises of stock options | $ | 2.7 | $ | 1.4 | $ | 10.6 | $ | 1.7 | ||||||||
Stock repurchases: | ||||||||||||||||
Aggregate purchase price | $ | 2.7 | $ | 126.2 | $ | 4.9 | $ | 531.6 | ||||||||
Shares repurchased (in millions) | 0.1 | 3.7 | 0.1 | 15.4 | ||||||||||||
Floorplan Assistance and Expense | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2013 | 2012 | Variance | 2013 | 2012 | Variance | |||||||||||||||||||
Floorplan assistance earned (included in cost of sales) | $ | 23.8 | $ | 18.5 | $ | 5.3 | $ | 42.4 | $ | 35.7 | $ | 6.7 | ||||||||||||
Floorplan interest expense (new vehicles) | (13.1 | ) | (10.3 | ) | (2.8 | ) | (25.4 | ) | (20.7 | ) | (4.7 | ) | ||||||||||||
Net new vehicle inventory carrying benefit | $ | 10.7 | $ | 8.2 | $ | 2.5 | $ | 17.0 | $ | 15.0 | $ | 2.0 | ||||||||||||
Balance Sheet and Other Highlights | June 30, 2013 | December 31, 2012 | June 30, 2012 | |||||||||
Cash and cash equivalents | $ | 69.7 | $ | 69.7 | $ | 62.1 | ||||||
Inventory | $ | 2,625.2 | $ | 2,396.9 | $ | 2,077.7 | ||||||
Total floorplan notes payable | $ | 2,748.1 | $ | 2,540.2 | $ | 2,122.0 | ||||||
Non-vehicle debt | $ | 1,936.8 | $ | 2,096.1 | $ | 2,028.5 | ||||||
Equity | $ | 1,882.5 | $ | 1,688.5 | $ | 1,528.2 | ||||||
New days supply (industry standard of selling days, including fleet) | 67 days | 55 days | 60 days | |||||||||
Used days supply (trailing calendar month days) | 30 days | 35 days | 31 days | |||||||||
Key Credit Agreement Covenant Compliance Calculations | ||
Ratio of funded indebtedness/ | ||
Adjusted EBITDA | 2.51x | |
Covenant | less than | 3.75x |
Ratio of funded indebtedness including floorplan/ | |||
Total capitalization including floorplan | 57.9 | % | |
Covenant | less than | 65.0 | % |
(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 June 30, | |||||||||||||||
Net Income | Diluted Earnings Per Share** | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
As reported | $ | 89.9 | $ | 78.6 | $ | 0.73 | $ | 0.64 | ||||||||
Discontinued operations, net of income taxes | 0.2 | 0.4 | $ | — | $ | — | ||||||||||
From continuing operations, as reported | 90.1 | 79.0 | $ | 0.73 | $ | 0.64 | ||||||||||
Franchise rights impairment | — | 2.6 | $ | — | $ | 0.02 | ||||||||||
Adjusted | $ | 90.1 | $ | 81.6 | $ | 0.73 | $ | 0.66 | ||||||||
Six Months Ended June 30, | ||||||||||||||||
Net Income | Diluted Earnings Per Share** | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
As reported | $ | 172.9 | $ | 151.6 | $ | 1.40 | $ | 1.18 | ||||||||
Discontinued operations, net of income taxes | 0.4 | 0.9 | $ | — | $ | 0.01 | ||||||||||
From continuing operations, as reported | 173.3 | 152.5 | $ | 1.41 | $ | 1.19 | ||||||||||
Franchise rights impairment | — | 2.6 | $ | — | $ | 0.02 | ||||||||||
Adjusted | $ | 173.3 | $ | 155.1 | $ | 1.41 | $ | 1.21 | ||||||||
* | Please refer to the “Non-GAAP Financial Measures” section of the Press Release. |
** | Diluted 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 June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
2013 | 2012 | $ Variance | % Variance | 2013 | 2012 | $ Variance | % Variance | |||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
New vehicle | $ | 2,398.4 | $ | 2,196.1 | $ | 202.3 | 9.2 | $ | 4,586.9 | $ | 4,190.4 | $ | 396.5 | 9.5 | ||||||||||||||||
Retail used vehicle | 919.6 | 829.5 | 90.1 | 10.9 | 1,789.9 | 1,630.6 | 159.3 | 9.8 | ||||||||||||||||||||||
Wholesale | 99.5 | 117.9 | (18.4 | ) | (15.6 | ) | 204.5 | 235.6 | (31.1 | ) | (13.2 | ) | ||||||||||||||||||
Used vehicle | 1,019.1 | 947.4 | 71.7 | 7.6 | 1,994.4 | 1,866.2 | 128.2 | 6.9 | ||||||||||||||||||||||
Finance and insurance, net | 168.6 | 145.1 | 23.5 | 16.2 | 320.1 | 275.3 | 44.8 | 16.3 | ||||||||||||||||||||||
Total variable operations | 3,586.1 | 3,288.6 | 297.5 | 9.0 | 6,901.4 | 6,331.9 | 569.5 | 9.0 | ||||||||||||||||||||||
Parts and service | 638.4 | 602.5 | 35.9 | 6.0 | 1,261.5 | 1,202.4 | 59.1 | 4.9 | ||||||||||||||||||||||
Other | 45.9 | 13.4 | 32.5 | 80.1 | 27.2 | 52.9 | ||||||||||||||||||||||||
Total revenue | $ | 4,270.4 | $ | 3,904.5 | $ | 365.9 | 9.4 | $ | 8,243.0 | $ | 7,561.5 | $ | 681.5 | 9.0 | ||||||||||||||||
Gross profit: | ||||||||||||||||||||||||||||||
New vehicle | $ | 143.1 | $ | 145.5 | $ | (2.4 | ) | (1.6 | ) | $ | 280.0 | $ | 279.5 | $ | 0.5 | 0.2 | ||||||||||||||
Retail used vehicle | 80.9 | 75.1 | 5.8 | 7.7 | 161.9 | 153.6 | 8.3 | 5.4 | ||||||||||||||||||||||
Wholesale | 1.0 | 2.0 | (1.0 | ) | 3.4 | 4.6 | (1.2 | ) | ||||||||||||||||||||||
Used vehicle | 81.9 | 77.1 | 4.8 | 6.2 | 165.3 | 158.2 | 7.1 | 4.5 | ||||||||||||||||||||||
Finance and insurance | 168.6 | 145.1 | 23.5 | 16.2 | 320.1 | 275.3 | 44.8 | 16.3 | ||||||||||||||||||||||
Total variable operations | 393.6 | 367.7 | 25.9 | 7.0 | 765.4 | 713.0 | 52.4 | 7.3 | ||||||||||||||||||||||
Parts and service | 272.2 | 253.4 | 18.8 | 7.4 | 538.5 | 503.6 | 34.9 | 6.9 | ||||||||||||||||||||||
Other | 8.7 | 6.9 | 1.8 | 17.1 | 14.4 | 2.7 | ||||||||||||||||||||||||
Total gross profit | $ | 674.5 | $ | 628.0 | $ | 46.5 | 7.4 | $ | 1,321.0 | $ | 1,231.0 | $ | 90.0 | 7.3 | ||||||||||||||||
Retail vehicle unit sales: | ||||||||||||||||||||||||||||||
New | 71,696 | 66,987 | 4,709 | 7.0 | 136,988 | 128,503 | 8,485 | 6.6 | ||||||||||||||||||||||
Used | 50,377 | 46,236 | 4,141 | 9.0 | 99,578 | 92,352 | 7,226 | 7.8 | ||||||||||||||||||||||
122,073 | 113,223 | 8,850 | 7.8 | 236,566 | 220,855 | 15,711 | 7.1 | |||||||||||||||||||||||
Revenue per vehicle retailed: | ||||||||||||||||||||||||||||||
New | $ | 33,452 | $ | 32,784 | $ | 668 | 2.0 | $ | 33,484 | $ | 32,609 | $ | 875 | 2.7 | ||||||||||||||||
Used | $ | 18,254 | $ | 17,941 | $ | 313 | 1.7 | $ | 17,975 | $ | 17,656 | $ | 319 | 1.8 | ||||||||||||||||
Gross profit per vehicle retailed: | ||||||||||||||||||||||||||||||
New | $ | 1,996 | $ | 2,172 | $ | (176 | ) | (8.1 | ) | $ | 2,044 | $ | 2,175 | $ | (131 | ) | (6.0 | ) | ||||||||||||
Used | $ | 1,606 | $ | 1,624 | $ | (18 | ) | (1.1 | ) | $ | 1,626 | $ | 1,663 | $ | (37 | ) | (2.2 | ) | ||||||||||||
Finance and insurance | $ | 1,381 | $ | 1,282 | $ | 99 | 7.7 | $ | 1,353 | $ | 1,247 | $ | 106 | 8.5 | ||||||||||||||||
Total variable operations(1) | $ | 3,216 | $ | 3,230 | $ | (14 | ) | (0.4 | ) | $ | 3,221 | $ | 3,208 | $ | 13 | 0.4 | ||||||||||||||
(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 June 30, | Six Months Ended June 30, | ||||||
2013 (%) | 2012 (%) | 2013 (%) | 2012 (%) | |||||
Revenue mix percentages: | ||||||||
New vehicle | 56.2 | 56.2 | 55.6 | 55.4 | ||||
Used vehicle | 23.9 | 24.3 | 24.2 | 24.7 | ||||
Parts and service | 14.9 | 15.4 | 15.3 | 15.9 | ||||
Finance and insurance, net | 3.9 | 3.7 | 3.9 | 3.6 | ||||
Other | 1.1 | 0.4 | 1.0 | 0.4 | ||||
100.0 | 100.0 | 100.0 | 100.0 | |||||
Gross profit mix percentages: | ||||||||
New vehicle | 21.2 | 23.2 | 21.2 | 22.7 | ||||
Used vehicle | 12.1 | 12.3 | 12.5 | 12.9 | ||||
Parts and service | 40.4 | 40.4 | 40.8 | 40.9 | ||||
Finance and insurance | 25.0 | 23.1 | 24.2 | 22.4 | ||||
Other | 1.3 | 1.0 | 1.3 | 1.1 | ||||
100.0 | 100.0 | 100.0 | 100.0 | |||||
Operating items as a percentage of revenue: | ||||||||
Gross Profit: | ||||||||
New vehicle | 6.0 | 6.6 | 6.1 | 6.7 | ||||
Used vehicle - retail | 8.8 | 9.1 | 9.0 | 9.4 | ||||
Parts and service | 42.6 | 42.1 | 42.7 | 41.9 | ||||
Total | 15.8 | 16.1 | 16.0 | 16.3 | ||||