AutoNation Reports Record Third Quarter EPS from Continuing Operations
FORT LAUDERDALE, Fla., Oct. 30, 2018 /PRNewswire/ -- AutoNation, Inc. (NYSE: AN), America's largest automotive retailer, today reported third quarter 2018 net income from continuing operations of $112 million, or $1.24 per share. Third quarter 2017 net income from continuing operations totaled $98 million, or $1.00 per share.
Same-store third quarter 2018 gross profit of $838 million increased by 2% compared to $824 million in the year-ago period, driven by the strength in Customer Care gross profit, used vehicle gross profit, and Customer Financial Services gross profit.
AutoNation and the Future of Automotive AutoNation's forward-looking strategy continues to invest in emerging digital technologies, internally and externally, as the mobility space is transforming, to better serve its customers. Today the Company announced a strategic investment in Vroom Inc., one of the largest online car retailers. AutoNation's investment in Vroom provides a foundation for potential strategic partnership opportunities with experienced and proven e-Commerce executives. The Company's investment of $50 million represents an ownership stake of approximately 7 percent.
As previously announced, AutoNation recently expanded its partnership with Waymo. AutoNation has the ability to offer its customers in Phoenix, AZ, the use of a Waymo while their personal vehicles are being serviced at AutoNation dealerships. AutoNation locations, offer strategic capabilities to maximize the life of Waymo's self-driving vehicle fleet as they expand.
Brand Extensions AutoNation increases its focus on Customer Care Brand Extension initiatives, which includes Precision Parts, collision centers, collision parts, and AutoGear. As a part of the Company's next steps in Brand Extensions, AutoNation also introduced a private label credit card powered by Synchrony. Customers will have the opportunity to use the credit card for the purchase of AutoGear products, automotive maintenance and repair services, and select Customer Financial Services products.
Segment Results Segment results(1) for the third quarter 2018 were as follows:
Third Quarter 2018 Segment Results
- Domestic - Domestic segment income(2) was $67 million compared to year-ago segment income of $69 million, a decrease of 3%.
- Import - Import segment income(2) was $85 million compared to year-ago segment income of $81 million, an increase of 5%.
- Premium Luxury - Premium Luxury segment income(2) was $77 million compared to year-ago segment income of $79 million, a decrease of 2%.
For the nine-month period ended September 30, 2018, the Company reported net income from continuing operations of $303 million, or $3.31 per share, compared to net income from continuing operations of $284 million, or $2.83 per share, for the same period in the prior year. The Company's revenue for the nine-month period ended September 30, 2018, totaled $16.0 billion, up 1% compared to $15.9 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) at 11:00 a.m. Eastern Time today or on AutoNation's investor relations website at investors.autonation.com.
The webcast will also be available on AutoNation's website following the call under "Events & Presentations." A playback of the conference call will be available after 1:00 p.m. Eastern Time on October 30, 2018, through November 21, 2018, by calling 800-677-9149 (passcode: 2910).
(1) | AutoNation has three reportable segments: Domestic, Import, and Premium Luxury. The Domestic segment is comprised of stores that sell vehicles manufactured by General Motors, Ford, and FCA US; 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, Audi, Lexus, and Jaguar Land Rover. |
(2) | Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense. |
About AutoNation, Inc.AutoNation, America's largest automotive retailer, is transforming the automotive industry through its bold leadership, innovation, and comprehensive brand extensions. As of September 30, 2018, AutoNation owned and operated over 325 locations from coast to coast. AutoNation has sold over 11 million vehicles, the first automotive retailer to reach this milestone. AutoNation's success is driven by a commitment to delivering a peerless experience through customer-focused sales and service processes. Through its Drive Pink initiative, AutoNation is committed to drive out cancer, create awareness and support critical research. AutoNation continues to be a proud supporter of the Breast Cancer Research Foundation and other cancer-related charities.
Please visit investors.autonation.com, www.autonation.com, www.autonationdrive.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 STATEMENTSThis 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," "could," and variations of such words and similar expressions are intended to identify such forward-looking statements. Statements regarding our strategic initiatives, partnerships, or investments, including our brand extension strategies, and expectations for future results and the future performance of our franchises (including with respect to sales of used vehicles and parts and accessories) and the automotive retail industry, as well as other statements that describe our objectives, goals, or plans are forward-looking statements. Our forward-looking statements reflect our current expectations concerning future results and events, and they involve known and unknown risks, uncertainties and other factors that are difficult to predict and may cause our actual results, performance or achievements to be materially different from any future results, performance and achievements expressed or implied by these statements. These risks, uncertainties and other factors include, among others: economic conditions, including changes in interest rates, fuel prices, and tariffs; new and used vehicle margins; the success and financial viability and the incentive and marketing programs of vehicle manufacturers and distributors with which we hold franchises; our ability to successfully implement, and customer adoption of, our brand extension strategies; our ability to identify, acquire, and build out suitable locations in a timely manner; our ability to maintain and enhance our retail brands and reputation and to attract consumers to our own digital channels; our ability to integrate successfully acquired and awarded franchises and to attain planned sales volumes within our expected time frames; restrictions imposed by vehicle manufacturers and our ability to obtain manufacturer approval for acquisitions; 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, | ||||||||
2018 | 2017 | 2018 | 2017 | ||||||
Revenue: | |||||||||
New vehicle | $ | 2,933.1 | $ | 3,108.4 | $ | 8,685.0 | $ | 8,835.5 | |
Used vehicle | 1,281.7 | 1,228.3 | 3,910.9 | 3,670.3 | |||||
Parts and service | 864.0 | 841.6 | 2,579.6 | 2,544.2 | |||||
Finance and insurance, net | 247.4 | 241.6 | 736.0 | 692.0 | |||||
Other | 23.0 | 12.5 | 89.6 | 109.1 | |||||
Total revenue | 5,349.2 | 5,432.4 | 16,001.1 | 15,851.1 | |||||
Cost of sales: | |||||||||
New vehicle | 2,807.7 | 2,963.6 | 8,305.1 | 8,408.2 | |||||
Used vehicle | 1,190.7 | 1,142.6 | 3,642.9 | 3,433.1 | |||||
Parts and service | 473.4 | 474.2 | 1,416.2 | 1,428.2 | |||||
Other | 22.1 | 6.1 | 87.5 | 89.8 | |||||
Total cost of sales | 4,493.9 | 4,586.5 | 13,451.7 | 13,359.3 | |||||
Gross profit | 855.3 | 845.9 | 2,549.4 | 2,491.8 | |||||
Selling, general, and administrative expenses | 626.2 | 607.5 | 1,878.3 | 1,814.1 | |||||
Depreciation and amortization | 42.9 | 41.4 | 124.0 | 118.0 | |||||
Franchise rights impairment | - | - | 8.1 | - | |||||
Other income, net | (17.4) | (14.2) | (41.6) | (54.4) | |||||
Operating income | 203.6 | 211.2 | 580.6 | 614.1 | |||||
Non-operating income (expense) items: | |||||||||
Floorplan interest expense | (32.7) | (25.1) | (93.4) | (70.7) | |||||
Other interest expense | (28.4) | (30.0) | (90.4) | (88.0) | |||||
Interest income | 0.3 | 0.2 | 0.8 | 0.8 | |||||
Other income, net | 2.3 | 1.6 | 3.3 | 6.4 | |||||
Income from continuing operations before income taxes | 145.1 | 157.9 | 400.9 | 462.6 | |||||
Income tax provision | 32.8 | 60.3 | 97.9 | 179.1 | |||||
Net income from continuing operations | 112.3 | 97.6 | 303.0 | 283.5 | |||||
Income (loss) from discontinued operations, net of income taxes | (0.3) | (0.1) | 0.3 | (0.2) | |||||
Net income | $ | 112.0 | $ | 97.5 | $ | 303.3 | $ | 283.3 | |
Diluted earnings (loss) per share*: | |||||||||
Continuing operations | $ | 1.24 | $ | 1.00 | $ | 3.31 | $ | 2.83 | |
Discontinued operations | $ | - | $ | - | $ | - | $ | - | |
Net income | $ | 1.23 | $ | 1.00 | $ | 3.31 | $ | 2.82 | |
Weighted average common shares outstanding | 90.8 | 97.7 | 91.6 | 100.3 | |||||
Common shares outstanding, net of treasury stock, at period end | 89.9 | 91.2 | 89.9 | 91.2 | |||||
* Earnings per share amounts are calculated discretely and therefore may not add up to the total due to rounding. | |||||||||
AUTONATION, INC. | ||||||||||||||||||
UNAUDITED SUPPLEMENTARY DATA | ||||||||||||||||||
($ in millions, except per vehicle data) | ||||||||||||||||||
Operating Highlights | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2018 | 2017 | $ Variance | % Variance | 2018 | 2017 | $ Variance | % Variance | |||||||||||
Revenue: | ||||||||||||||||||
New vehicle | $ | 2,933.1 | $ | 3,108.4 | $ | (175.3) | (5.6) | $ | 8,685.0 | $ | 8,835.5 | $ | (150.5) | (1.7) | ||||
Retail used vehicle | 1,211.6 | 1,151.5 | 60.1 | 5.2 | 3,666.1 | 3,438.7 | 227.4 | 6.6 | ||||||||||
Wholesale | 70.1 | 76.8 | (6.7) | (8.7) | 244.8 | 231.6 | 13.2 | 5.7 | ||||||||||
Used vehicle | 1,281.7 | 1,228.3 | 53.4 | 4.3 | 3,910.9 | 3,670.3 | 240.6 | 6.6 | ||||||||||
Finance and insurance, net | 247.4 | 241.6 | 5.8 | 2.4 | 736.0 | 692.0 | 44.0 | 6.4 | ||||||||||
Total variable operations | 4,462.2 | 4,578.3 | (116.1) | (2.5) | 13,331.9 | 13,197.8 | 134.1 | 1.0 | ||||||||||
Parts and service | 864.0 | 841.6 | 22.4 | 2.7 | 2,579.6 | 2,544.2 | 35.4 | 1.4 | ||||||||||
Other | 23.0 | 12.5 | 10.5 | 89.6 | 109.1 | (19.5) | ||||||||||||
Total revenue | 5,349.2 | 5,432.4 | (83.2) | (1.5) | 16,001.1 | 15,851.1 | 150.0 | 0.9 | ||||||||||
Gross profit: | ||||||||||||||||||
New vehicle | $ | 125.4 | $ | 144.8 | $ | (19.4) | (13.4) | $ | 379.9 | $ | 427.3 | $ | (47.4) | (11.1) | ||||
Retail used vehicle | 87.4 | 83.9 | 3.5 | 4.2 | 256.4 | 232.8 | 23.6 | 10.1 | ||||||||||
Wholesale | 3.6 | 1.8 | 1.8 | 11.6 | 4.4 | 7.2 | ||||||||||||
Used vehicle | 91.0 | 85.7 | 5.3 | 6.2 | 268.0 | 237.2 | 30.8 | 13.0 | ||||||||||
Finance and insurance | 247.4 | 241.6 | 5.8 | 2.4 | 736.0 | 692.0 | 44.0 | 6.4 | ||||||||||
Total variable operations | 463.8 | 472.1 | (8.3) | (1.8) | 1,383.9 | 1,356.5 | 27.4 | 2.0 | ||||||||||
Parts and service | 390.6 | 367.4 | 23.2 | 6.3 | 1,163.4 | 1,116.0 | 47.4 | 4.2 | ||||||||||
Other | 0.9 | 6.4 | (5.5) | 2.1 | 19.3 | (17.2) | ||||||||||||
Total gross profit | 855.3 | 845.9 | 9.4 | 1.1 | 2,549.4 | 2,491.8 | 57.6 | 2.3 | ||||||||||
Selling, general, and administrative expenses | 626.2 | 607.5 | (18.7) | (3.1) | 1,878.3 | 1,814.1 | (64.2) | (3.5) | ||||||||||
Depreciation and amortization | 42.9 | 41.4 | (1.5) | 124.0 | 118.0 | (6.0) | ||||||||||||
Franchise rights impairment | - | - | - | 8.1 | - | (8.1) | ||||||||||||
Other income, net | (17.4) | (14.2) | 3.2 | (41.6) | (54.4) | (12.8) | ||||||||||||
Operating income | 203.6 | 211.2 | (7.6) | (3.6) | 580.6 | 614.1 | (33.5) | (5.5) | ||||||||||
Non-operating income (expense) items: | ||||||||||||||||||
Floorplan interest expense | (32.7) | (25.1) | (7.6) | (93.4) | (70.7) | (22.7) | ||||||||||||
Other interest expense | (28.4) | (30.0) | 1.6 | (90.4) | (88.0) | (2.4) | ||||||||||||
Interest income | 0.3 | 0.2 | 0.1 | 0.8 | 0.8 | - | ||||||||||||
Other income, net | 2.3 | 1.6 | 0.7 | 3.3 | 6.4 | (3.1) | ||||||||||||
Income from continuing operations before income taxes | $ | 145.1 | $ | 157.9 | $ | (12.8) | (8.1) | $ | 400.9 | $ | 462.6 | $ | (61.7) | (13.3) | ||||
Retail vehicle unit sales: | ||||||||||||||||||
New | 79,237 | 86,192 | (6,955) | (8.1) | 232,469 | 241,882 | (9,413) | (3.9) | ||||||||||
Used | 60,446 | 59,330 | 1,116 | 1.9 | 182,737 | 178,204 | 4,533 | 2.5 | ||||||||||
139,683 | 145,522 | (5,839) | (4.0) | 415,206 | 420,086 | (4,880) | (1.2) | |||||||||||
Revenue per vehicle retailed: | ||||||||||||||||||
New | $ | 37,017 | $ | 36,064 | $ | 953 | 2.6 | $ | 37,360 | $ | 36,528 | $ | 832 | 2.3 | ||||
Used | $ | 20,044 | $ | 19,408 | $ | 636 | 3.3 | $ | 20,062 | $ | 19,296 | $ | 766 | 4.0 | ||||
Gross profit per vehicle retailed: | ||||||||||||||||||
New | $ | 1,583 | $ | 1,680 | $ | (97) | (5.8) | $ | 1,634 | $ | 1,767 | $ | (133) | (7.5) | ||||
Used | $ | 1,446 | $ | 1,414 | $ | 32 | 2.3 | $ | 1,403 | $ | 1,306 | $ | 97 | 7.4 | ||||
Finance and insurance | $ | 1,771 | $ | 1,660 | $ | 111 | 6.7 | $ | 1,773 | $ | 1,647 | $ | 126 | 7.7 | ||||
Total variable operations(1) | $ | 3,295 | $ | 3,232 | $ | 63 | 1.9 | $ | 3,305 | $ | 3,219 | $ | 86 | 2.7 | ||||
Operating Percentages | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2018 (%) | 2017 (%) | 2018 (%) | 2017 (%) | |||||||||||||||
Revenue mix percentages: | ||||||||||||||||||
New vehicle | 54.8 | 57.2 | 54.3 | 55.7 | ||||||||||||||
Used vehicle | 24.0 | 22.6 | 24.4 | 23.2 | ||||||||||||||
Parts and service | 16.2 | 15.5 | 16.1 | 16.1 | ||||||||||||||
Finance and insurance, net | 4.6 | 4.4 | 4.6 | 4.4 | ||||||||||||||
Other | 0.4 | 0.3 | 0.6 | 0.6 | ||||||||||||||
100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||||
Gross profit mix percentages: | ||||||||||||||||||
New vehicle | 14.7 | 17.1 | 14.9 | 17.1 | ||||||||||||||
Used vehicle | 10.6 | 10.1 | 10.5 | 9.5 | ||||||||||||||
Parts and service | 45.7 | 43.4 | 45.6 | 44.8 | ||||||||||||||
Finance and insurance | 28.9 | 28.6 | 28.9 | 27.8 | ||||||||||||||
Other | 0.1 | 0.8 | 0.1 | 0.8 | ||||||||||||||
100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||||
Operating items as a percentage of revenue: | ||||||||||||||||||
Gross profit: | ||||||||||||||||||
New vehicle | 4.3 | 4.7 | 4.4 | 4.8 | ||||||||||||||
Used vehicle - retail | 7.2 | 7.3 | 7.0 | 6.8 | ||||||||||||||
Parts and service | 45.2 | 43.7 | 45.1 | 43.9 | ||||||||||||||
Total | 16.0 | 15.6 | 15.9 | 15.7 | ||||||||||||||
Selling, general, and administrative expenses | 11.7 | 11.2 | 11.7 | 11.4 | ||||||||||||||
Operating income | 3.8 | 3.9 | 3.6 | 3.9 | ||||||||||||||
Operating items as a percentage of total gross profit: | ||||||||||||||||||
Selling, general, and administrative expenses | 73.2 | 71.8 | 73.7 | 72.8 | ||||||||||||||
Operating income | 23.8 | 25.0 | 22.8 | 24.6 | ||||||||||||||
(1) Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle, retail used vehicle, and finance and insurance | ||||||||||||||||||
gross profit by total retail vehicle unit sales. | ||||||||||||||||||
AUTONATION, INC. | |||||||||||||||||
UNAUDITED SUPPLEMENTARY DATA | |||||||||||||||||
($ in millions) | |||||||||||||||||
Segment Operating Highlights | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | $ Variance | % Variance | 2018 | 2017 | $ Variance | % Variance | ||||||||||
Revenue: | |||||||||||||||||
Domestic | $ | 1,789.7 | $ | 1,912.4 | $ | (122.7) | (6.4) | $ | 5,389.5 | $ | 5,557.7 | $ | (168.2) | (3.0) | |||
Import | 1,770.6 | 1,789.7 | (19.1) | (1.1) | 5,140.2 | 5,123.5 | 16.7 | 0.3 | |||||||||
Premium luxury | 1,668.8 | 1,634.3 | 34.5 | 2.1 | 5,116.8 | 4,894.9 | 221.9 | 4.5 | |||||||||
Total | 5,229.1 | 5,336.4 | (107.3) | (2.0) | 15,646.5 | 15,576.1 | 70.4 | 0.5 | |||||||||
Corporate and other | 120.1 | 96.0 | 24.1 | 25.1 | 354.6 | 275.0 | 79.6 | 28.9 | |||||||||
Total consolidated revenue | $ | 5,349.2 | $ | 5,432.4 | $ | (83.2) | (1.5) | $ | 16,001.1 | $ | 15,851.1 | $ | 150.0 | 0.9 | |||
Segment income*: | |||||||||||||||||
Domestic | $ | 67.2 | $ | 69.0 | $ | (1.8) | (2.6) | $ | 194.6 | $ | 190.5 | $ | 4.1 | 2.2 | |||
Import | 85.3 | 81.0 | 4.3 | 5.3 | 236.2 | 227.9 | 8.3 | 3.6 | |||||||||
Premium luxury | 76.9 | 78.8 | (1.9) | (2.4) | 249.5 | 243.3 | 6.2 | 2.5 | |||||||||
Total | 229.4 | 228.8 | 0.6 | 0.3 | 680.3 | 661.7 | 18.6 | 2.8 | |||||||||
Corporate and other | (58.5) | (42.7) | (15.8) | (193.1) | (118.3) | (74.8) | |||||||||||
Add: Floorplan interest expense | 32.7 | 25.1 | 7.6 | 93.4 | 70.7 | 22.7 | |||||||||||
Operating income | $ | 203.6 | $ | 211.2 | $ | (7.6) | (3.6) | $ | 580.6 | $ | 614.1 | $ | (33.5) | (5.5) | |||
* 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 | 25,966 | 29,618 | (3,652) | (12.3) | 76,871 | 82,765 | (5,894) | (7.1) | |||||||||
Import | 37,540 | 40,442 | (2,902) | (7.2) | 107,776 | 111,781 | (4,005) | (3.6) | |||||||||
Premium luxury | 15,731 | 16,132 | (401) | (2.5) | 47,822 | 47,336 | 486 | 1.0 | |||||||||
79,237 | 86,192 | (6,955) | (8.1) | 232,469 | 241,882 | (9,413) | (3.9) | ||||||||||
Brand Mix - Retail New Vehicle Units Sold | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2018 (%) | 2017 (%) | 2018 (%) | 2017 (%) | ||||||||||||||
Domestic: | |||||||||||||||||
Ford, Lincoln | 12.4 | 14.2 | 12.4 | 13.8 | |||||||||||||
Chevrolet, Buick, Cadillac, GMC | 10.6 | 10.8 | 11.0 | 10.6 | |||||||||||||
Chrysler, Dodge, Jeep, Ram | 9.8 | 9.4 | 9.7 | 9.8 | |||||||||||||
Domestic total | 32.8 | 34.4 | 33.1 | 34.2 | |||||||||||||
Import: | |||||||||||||||||
Toyota | 20.4 | 19.5 | 19.6 | 18.9 | |||||||||||||
Honda | 13.9 | 13.2 | 13.9 | 13.2 | |||||||||||||
Nissan | 5.4 | 6.8 | 5.5 | 6.9 | |||||||||||||
Other Import | 7.6 | 7.4 | 7.3 | 7.2 | |||||||||||||
Import total | 47.3 | 46.9 | 46.3 | 46.2 | |||||||||||||
Premium Luxury: | |||||||||||||||||
Mercedes-Benz | 6.9 | 6.9 | 7.8 | 7.6 | |||||||||||||
BMW | 5.0 | 4.0 | 4.8 | 4.4 | |||||||||||||
Lexus | 2.2 | 2.6 | 2.3 | 2.5 | |||||||||||||
Audi | 2.4 | 2.3 | 2.3 | 2.3 | |||||||||||||
Other Premium Luxury (Land Rover, Porsche) | 3.4 | 2.9 | 3.4 | 2.8 | |||||||||||||
Premium Luxury total | 19.9 | 18.7 | 20.6 | 19.6 | |||||||||||||
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, | ||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
Capital expenditures (1) | $ | 88.9 | $ | 55.9 | $ | 271.6 | $ | 224.6 | ||||
Cash paid for acquisitions, net of cash acquired (2) | $ | 65.2 | $ | 4.0 | $ | 67.9 | $ | 56.9 | ||||
Proceeds from exercises of stock options | $ | 1.8 | $ | 1.9 | $ | 16.0 | $ | 24.7 | ||||
Stock repurchases: | ||||||||||||
Aggregate purchase price | $ | - | $ | 400.0 | $ | 100.0 | $ | 434.9 | ||||
Shares repurchased (in millions) | - | 9.2 | 2.1 | 10.1 | ||||||||
Floorplan Assistance and Expense | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||
Floorplan assistance earned (included in cost of sales) | $ | 28.9 | $ | 31.1 | $ | (2.2) | $ | 87.1 | $ | 88.7 | $ | (1.6) |
New vehicle floorplan interest expense | (30.5) | (23.4) | (7.1) | (87.2) | (66.2) | (21.0) | ||||||
Net new vehicle inventory carrying benefit (cost) | $ | (1.6) | $ | 7.7 | $ | (9.3) | $ | (0.1) | $ | 22.5 | $ | (22.6) |
Balance Sheet and Other Highlights | ||||||||||||
September 30, 2018 | December 31, 2017 | September 30, 2017 | ||||||||||
Cash and cash equivalents | $ | 52.6 | $ | 69.2 | $ | 53.3 | ||||||
Inventory | $ | 3,381.3 | $ | 3,365.6 | $ | 3,408.6 | ||||||
Total floorplan notes payable | $ | 3,603.3 | $ | 3,806.9 | $ | 3,630.5 | ||||||
Non-vehicle debt | $ | 2,567.4 | $ | 2,703.7 | $ | 2,857.6 | ||||||
Equity | $ | 2,618.0 | $ | 2,369.3 | $ | 2,200.5 | ||||||
New days supply (industry standard of selling days) | 63 days | 53 days | 59 days | |||||||||
Used days supply (trailing calendar month days) | 37 days | 43 days | 38 days | |||||||||
Key Credit Agreement Covenant Compliance Calculations(3) | ||||||||||||
Leverage ratio | 2.79x | |||||||||||
Covenant | less than or equal to | 4.00x | ||||||||||
Capitalization ratio | 59.6% | |||||||||||
Covenant | less than or equal to | 70.0% | ||||||||||
(1) Includes accrued construction in progress and excludes property associated with capital leases entered into during | ||||||||||||
the period. | ||||||||||||
(2) Excludes capital leases and deferred purchase price commitments. | ||||||||||||
(3) Calculated in accordance with our credit agreement as filed with the SEC. | ||||||||||||
AUTONATION, INC. | ||||||||||||||||
UNAUDITED SAME STORE DATA | ||||||||||||||||
($ in millions, except per vehicle data) | ||||||||||||||||
Operating Highlights | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | $ Variance | % Variance | 2018 | 2017 | $ Variance | % Variance | |||||||||
Revenue: | ||||||||||||||||
New vehicle | $ | 2,884.1 | $ | 3,016.8 | $ | (132.7) | (4.4) | $ | 8,533.5 | $ | 8,548.9 | $ | (15.4) | (0.2) | ||
Retail used vehicle | 1,176.1 | 1,111.7 | 64.4 | 5.8 | 3,550.0 | 3,305.5 | 244.5 | 7.4 | ||||||||
Wholesale | 68.1 | 74.5 | (6.4) | (8.6) | 233.9 | 223.0 | 10.9 | 4.9 | ||||||||
Used vehicle | 1,244.2 | 1,186.2 | 58.0 | 4.9 | 3,783.9 | 3,528.5 | 255.4 | 7.2 | ||||||||
Finance and insurance, net | 243.9 | 235.4 | 8.5 | 3.6 | 724.4 | 672.9 | 51.5 | 7.7 | ||||||||
Total variable operations | 4,372.2 | 4,438.4 | (66.2) | (1.5) | 13,041.8 | 12,750.3 | 291.5 | 2.3 | ||||||||
Parts and service | 843.3 | 819.2 | 24.1 | 2.9 | 2,520.5 | 2,469.7 | 50.8 | 2.1 | ||||||||
Other | 23.0 | 12.4 | 10.6 | 89.6 | 108.7 | (19.1) | ||||||||||
Total revenue | $ | 5,238.5 | $ | 5,270.0 | $ | (31.5) | (0.6) | $ | 15,651.9 | $ | 15,328.7 | $ | 323.2 | 2.1 | ||
Gross profit: | ||||||||||||||||
New vehicle | $ | 123.0 | $ | 141.0 | $ | (18.0) | (12.8) | $ | 372.8 | $ | 415.6 | $ | (42.8) | (10.3) | ||
Retail used vehicle | 85.4 | 81.4 | 4.0 | 4.9 | 250.6 | 224.7 | 25.9 | 11.5 | ||||||||
Wholesale | 3.0 | 2.1 | 0.9 | 6.2 | 4.6 | 1.6 | ||||||||||
Used vehicle | 88.4 | 83.5 | 4.9 | 5.9 | 256.8 | 229.3 | 27.5 | 12.0 | ||||||||
Finance and insurance | 243.9 | 235.4 | 8.5 | 3.6 | 724.4 | 672.9 | 51.5 | 7.7 | ||||||||
Total variable operations | 455.3 | 459.9 | (4.6) | (1.0) | 1,354.0 | 1,317.8 | 36.2 | 2.7 | ||||||||
Parts and service | 381.5 | 358.0 | 23.5 | 6.6 | 1,136.7 | 1,083.6 | 53.1 | 4.9 | ||||||||
Other | 0.7 | 6.3 | (5.6) | 2.1 | 19.0 | (16.9) | ||||||||||
Total gross profit | $ | 837.5 | $ | 824.2 | $ | 13.3 | 1.6 | $ | 2,492.8 | $ | 2,420.4 | $ | 72.4 | 3.0 | ||
Retail vehicle unit sales: | ||||||||||||||||
New | 78,275 | 83,571 | (5,296) | (6.3) | 229,251 | 233,582 | (4,331) | (1.9) | ||||||||
Used | 58,666 | 57,065 | 1,601 | 2.8 | 176,678 | 170,343 | 6,335 | 3.7 | ||||||||
136,941 | 140,636 | (3,695) | (2.6) | 405,929 | 403,925 | 2,004 | 0.5 | |||||||||
Revenue per vehicle retailed: | ||||||||||||||||
New | $ | 36,846 | $ | 36,099 | $ | 747 | 2.1 | $ | 37,223 | $ | 36,599 | $ | 624 | 1.7 | ||
Used | $ | 20,047 | $ | 19,481 | $ | 566 | 2.9 | $ | 20,093 | $ | 19,405 | $ | 688 | 3.5 | ||
Gross profit per vehicle retailed: | ||||||||||||||||
New | $ | 1,571 | $ | 1,687 | $ | (116) | (6.9) | $ | 1,626 | $ | 1,779 | $ | (153) | (8.6) | ||
Used | $ | 1,456 | $ | 1,426 | $ | 30 | 2.1 | $ | 1,418 | $ | 1,319 | $ | 99 | 7.5 | ||
Finance and insurance | $ | 1,781 | $ | 1,674 | $ | 107 | 6.4 | $ | 1,785 | $ | 1,666 | $ | 119 | 7.1 | ||
Total variable operations(1) | $ | 3,303 | $ | 3,255 | $ | 48 | 1.5 | $ | 3,320 | $ | 3,251 | $ | 69 | 2.1 | ||
Operating Percentages | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 (%) | 2017 (%) | 2018 (%) | 2017 (%) | |||||||||||||
Revenue mix percentages: | ||||||||||||||||
New vehicle | 55.1 | 57.2 | 54.5 | 55.8 | ||||||||||||
Used vehicle | 23.8 | 22.5 | 24.2 | 23.0 | ||||||||||||
Parts and service | 16.1 | 15.5 | 16.1 | 16.1 | ||||||||||||
Finance and insurance, net | 4.7 | 4.5 | 4.6 | 4.4 | ||||||||||||
Other | 0.3 | 0.3 | 0.6 | 0.7 | ||||||||||||
100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||
Gross profit mix percentages: | ||||||||||||||||
New vehicle | 14.7 | 17.1 | 15.0 | 17.2 | ||||||||||||
Used vehicle | 10.6 | 10.1 | 10.3 | 9.5 | ||||||||||||
Parts and service | 45.6 | 43.4 | 45.6 | 44.8 | ||||||||||||
Finance and insurance | 29.1 | 28.6 | 29.1 | 27.8 | ||||||||||||
Other | - | 0.8 | - | 0.7 | ||||||||||||
100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||
Operating items as a percentage of revenue: | ||||||||||||||||
Gross profit: | ||||||||||||||||
New vehicle | 4.3 | 4.7 | 4.4 | 4.9 | ||||||||||||
Used vehicle - retail | 7.3 | 7.3 | 7.1 | 6.8 | ||||||||||||
Parts and service | 45.2 | 43.7 | 45.1 | 43.9 | ||||||||||||
Total | 16.0 | 15.6 | 15.9 | 15.8 | ||||||||||||
(1) Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle, retail used vehicle, and finance and | ||||||||||||||||
insurance gross profit by total retail vehicle unit sales. | ||||||||||||||||
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SOURCE AutoNation, Inc.