Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - AUTONATION, INC. | an8kearningsrelease93012.htm |
Exhibit 99.1
 | Contact: Marc Cannon (954) 769-3146 cannonm@autonation.com Investor contacts: Cheryl Scully (954) 769-7734 scullyc@autonation.com Kate Keyser-Pearlman (954) 769-7342 keyserk1@autonation.com | |||
AutoNation Reports Record Third Quarter EPS from Continuing Operations
• | EPS from continuing operations was $0.66, a record for third quarter results and an increase of 38% compared to prior year period |
• | Operating income of $163.7 million, an increase of 14% compared to prior year period |
• | Total revenue of $3.93 billion, up 12% compared to the year-ago period; revenue for all major business sectors - new vehicles, used vehicles, parts and service, and finance and insurance - improved compared to the third quarter of 2011 |
FORT LAUDERDALE, Fla., (October 25, 2012) — AutoNation, Inc. (NYSE: AN), America’s largest automotive retailer, today reported 2012 third quarter net income from continuing operations of $82 million, or $0.66 per share, compared to net income from continuing operations of $71 million, or $0.48 per share, for the same period in the prior year, a 38% improvement on a per-share basis.
2012 third quarter revenue totaled $3.93 billion, compared to $3.51 billion in the year-ago period, an increase of 12%, driven primarily by stronger retail new vehicle unit sales. AutoNation’s retail new vehicle unit sales increased 21%. Based on CNW Research data, in the third quarter, total U.S. industry retail new vehicle unit sales increased 15%.
Mike Jackson, Chairman and Chief Executive Officer, said, “We delivered solid double-digit growth in operating income and EPS from continuing operations in the third quarter of 2012, as we drove increased profitability in each of our business sectors.”
Commenting on the automotive retail environment, Mr. Jackson added, “We continued to see a strong new vehicle selling environment in the third quarter, reflected in a seasonally adjusted U.S. industry annual selling rate of 14.5 million units. We are expecting industry new vehicle sales to be mid-14 million units in 2012.”
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(1) segment is comprised of stores that sell vehicles manufactured primarily by Toyota, Honda, Hyundai, and Nissan; and the Premium Luxury(1) segment is comprised of stores that sell vehicles manufactured primarily by Mercedes-Benz, BMW, Audi, and Lexus. Segment results for the third quarter of 2012 were as follows:
• | Domestic – Domestic segment income(2) was $52 million compared to year-ago segment income of $47 million. Third quarter Domestic retail new vehicle unit sales increased 9%. |
• | Import – Import segment income(2) was $69 million compared to year-ago segment income of $61 million. Third quarter Import retail new vehicle unit sales increased 35% as sales normalized from the tsunami effects from the prior year. |
• | Premium Luxury – Premium Luxury segment income(2) was $63 million compared to year-ago segment income of $53 million. Third quarter Premium Luxury retail new vehicle unit sales increased 11%. |
For the nine-month period ended September 30, 2012, the Company reported adjusted net income from continuing operations of $237 million, or $1.88 per share, compared to net income from continuing operations of $214 million, or $1.43 per share for the same period in the prior year, an improvement of 31% on a per-share basis. On a GAAP basis, net income from continuing operations for the nine-month period ended September 30, 2012 was $234 million, or $1.85 per share. Reconciliations of non-
GAAP financial measures are included in the attached financial tables. The Company’s revenue for the nine-month period ended September 30, 2012, totaled $11.50 billion, up 13% compared to $10.15 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 or on AutoNation’s investor relations website at http://investors.autonation.com.
The webcast will also be available on AutoNation’s website under “Events & Presentations” following the call. A playback of the conference call will be available after 1:00 p.m. Eastern Time on October 25, 2012, through November 2, 2012 by calling (800) 518-0083 (password 75300).
(1) | As of March 31, 2012, we revised the basis of segmentation for our Import and Premium Luxury segments to reclassify our Audi franchises from the Import segment to the Premium Luxury segment. In connection with this change, we have reclassified historical amounts to conform to our current segment presentation. |
(2) | Segment income 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 261 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. AutoNation is driven to be the best-run, most profitable automotive retailer. Follow us at www.facebook.com/autonation and www.twitter.com/autonation.
For additional information about AutoNation, please visit http://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, 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; 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 September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Revenue: | |||||||||||||||
New vehicle | $ | 2,240.5 | $ | 1,881.6 | $ | 6,430.9 | $ | 5,413.3 | |||||||
Used vehicle | 936.4 | 911.9 | 2,802.6 | 2,630.6 | |||||||||||
Parts and service | 596.8 | 578.0 | 1,799.2 | 1,720.0 | |||||||||||
Finance and insurance, net | 147.0 | 121.9 | 422.3 | 349.6 | |||||||||||
Other | 13.1 | 13.1 | 40.3 | 40.4 | |||||||||||
Total revenue | 3,933.8 | 3,506.5 | 11,495.3 | 10,153.9 | |||||||||||
Cost of sales: | |||||||||||||||
New vehicle | 2,095.8 | 1,743.4 | 6,006.7 | 5,013.1 | |||||||||||
Used vehicle | 863.7 | 845.4 | 2,571.7 | 2,407.4 | |||||||||||
Parts and service | 345.0 | 336.1 | 1,043.8 | 988.4 | |||||||||||
Other | 6.7 | 6.4 | 19.5 | 20.2 | |||||||||||
Total cost of sales | 3,311.2 | 2,931.3 | 9,641.7 | 8,429.1 | |||||||||||
Gross profit | 622.6 | 575.2 | 1,853.6 | 1,724.8 | |||||||||||
Selling, general and administrative expenses | 435.8 | 411.4 | 1,307.3 | 1,236.7 | |||||||||||
Depreciation and amortization | 22.9 | 20.9 | 64.9 | 62.7 | |||||||||||
Franchise rights impairment | — | — | 4.2 | — | |||||||||||
Other expenses (income), net | 0.2 | (1.2 | ) | 0.6 | (3.1 | ) | |||||||||
Operating income | 163.7 | 144.1 | 476.6 | 428.5 | |||||||||||
Non-operating income (expense) items: | |||||||||||||||
Floorplan interest expense | (11.4 | ) | (9.7 | ) | (32.9 | ) | (31.8 | ) | |||||||
Other interest expense | (22.2 | ) | (16.4 | ) | (65.2 | ) | (48.6 | ) | |||||||
Interest income | — | — | 0.2 | 0.6 | |||||||||||
Other income (loss), net | 2.5 | (2.4 | ) | 3.1 | (0.2 | ) | |||||||||
Income from continuing operations before income taxes | 132.6 | 115.6 | 381.8 | 348.5 | |||||||||||
Income tax provision | 50.7 | 44.9 | 147.4 | 134.2 | |||||||||||
Net income from continuing operations | 81.9 | 70.7 | 234.4 | 214.3 | |||||||||||
Loss from discontinued operations, net of income taxes | (0.3 | ) | — | (1.2 | ) | (2.3 | ) | ||||||||
Net income | $ | 81.6 | $ | 70.7 | $ | 233.2 | $ | 212.0 | |||||||
Diluted earnings (loss) per share*: | |||||||||||||||
Continuing operations | $ | 0.66 | $ | 0.48 | $ | 1.85 | $ | 1.43 | |||||||
Discontinued operations | $ | — | $ | — | $ | (0.01 | ) | $ | (0.02 | ) | |||||
Net income | $ | 0.66 | $ | 0.48 | $ | 1.84 | $ | 1.42 | |||||||
Weighted average common shares outstanding | 123.4 | 147.0 | 126.4 | 149.5 | |||||||||||
Common shares outstanding, net of treasury stock, at September 30 | 121.7 | 141.4 | 121.7 | 141.4 | |||||||||||
* 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 September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2012 | 2011 | $ Variance | % Variance | 2012 | 2011 | $ Variance | % Variance | ||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
New vehicle | $ | 2,240.5 | $ | 1,881.6 | $ | 358.9 | 19.1 | $ | 6,430.9 | $ | 5,413.3 | $ | 1,017.6 | 18.8 | |||||||||||||||
Retail used vehicle | 811.5 | 780.5 | 31.0 | 4.0 | 2,442.1 | 2,293.9 | 148.2 | 6.5 | |||||||||||||||||||||
Wholesale | 124.9 | 131.4 | (6.5 | ) | (4.9 | ) | 360.5 | 336.7 | 23.8 | 7.1 | |||||||||||||||||||
Used vehicle | 936.4 | 911.9 | 24.5 | 2.7 | 2,802.6 | 2,630.6 | 172.0 | 6.5 | |||||||||||||||||||||
Parts and service | 596.8 | 578.0 | 18.8 | 3.3 | 1,799.2 | 1,720.0 | 79.2 | 4.6 | |||||||||||||||||||||
Finance and insurance, net | 147.0 | 121.9 | 25.1 | 20.6 | 422.3 | 349.6 | 72.7 | 20.8 | |||||||||||||||||||||
Other | 13.1 | 13.1 | — | 40.3 | 40.4 | (0.1 | ) | ||||||||||||||||||||||
Total revenue | $ | 3,933.8 | $ | 3,506.5 | $ | 427.3 | 12.2 | $ | 11,495.3 | $ | 10,153.9 | $ | 1,341.4 | 13.2 | |||||||||||||||
Gross profit: | |||||||||||||||||||||||||||||
New vehicle | $ | 144.7 | $ | 138.2 | $ | 6.5 | 4.7 | $ | 424.2 | $ | 400.2 | $ | 24.0 | 6.0 | |||||||||||||||
Retail used vehicle | 72.5 | 67.4 | 5.1 | 7.6 | 226.1 | 218.3 | 7.8 | 3.6 | |||||||||||||||||||||
Wholesale | 0.2 | (0.9 | ) | 1.1 | 4.8 | 4.9 | (0.1 | ) | |||||||||||||||||||||
Used vehicle | 72.7 | 66.5 | 6.2 | 9.3 | 230.9 | 223.2 | 7.7 | 3.4 | |||||||||||||||||||||
Parts and service | 251.8 | 241.9 | 9.9 | 4.1 | 755.4 | 731.6 | 23.8 | 3.3 | |||||||||||||||||||||
Finance and insurance | 147.0 | 121.9 | 25.1 | 20.6 | 422.3 | 349.6 | 72.7 | 20.8 | |||||||||||||||||||||
Other | 6.4 | 6.7 | (0.3 | ) | 20.8 | 20.2 | 0.6 | ||||||||||||||||||||||
Total gross profit | 622.6 | 575.2 | 47.4 | 8.2 | 1,853.6 | 1,724.8 | 128.8 | 7.5 | |||||||||||||||||||||
Selling, general and administrative expenses | 435.8 | 411.4 | (24.4 | ) | (5.9 | ) | 1,307.3 | 1,236.7 | (70.6 | ) | (5.7 | ) | |||||||||||||||||
Depreciation and amortization | 22.9 | 20.9 | (2.0 | ) | 64.9 | 62.7 | (2.2 | ) | |||||||||||||||||||||
Franchise rights impairment | — | — | — | 4.2 | — | (4.2 | ) | ||||||||||||||||||||||
Other expenses (income), net | 0.2 | (1.2 | ) | (1.4 | ) | 0.6 | (3.1 | ) | (3.7 | ) | |||||||||||||||||||
Operating income | 163.7 | 144.1 | 19.6 | 13.6 | 476.6 | 428.5 | 48.1 | 11.2 | |||||||||||||||||||||
Non-operating income (expense) items: | |||||||||||||||||||||||||||||
Floorplan interest expense | (11.4 | ) | (9.7 | ) | (1.7 | ) | (32.9 | ) | (31.8 | ) | (1.1 | ) | |||||||||||||||||
Other interest expense | (22.2 | ) | (16.4 | ) | (5.8 | ) | (65.2 | ) | (48.6 | ) | (16.6 | ) | |||||||||||||||||
Interest income | — | — | — | 0.2 | 0.6 | (0.4 | ) | ||||||||||||||||||||||
Other income (loss), net | 2.5 | (2.4 | ) | 4.9 | 3.1 | (0.2 | ) | 3.3 | |||||||||||||||||||||
Income from continuing operations before income taxes | $ | 132.6 | $ | 115.6 | $ | 17.0 | 14.7 | $ | 381.8 | $ | 348.5 | $ | 33.3 | 9.6 | |||||||||||||||
Retail vehicle unit sales: | |||||||||||||||||||||||||||||
New | 68,350 | 56,309 | 12,041 | 21.4 | 196,853 | 163,843 | 33,010 | 20.1 | |||||||||||||||||||||
Used | 45,643 | 44,226 | 1,417 | 3.2 | 137,995 | 129,148 | 8,847 | 6.9 | |||||||||||||||||||||
113,993 | 100,535 | 13,458 | 13.4 | 334,848 | 292,991 | 41,857 | 14.3 | ||||||||||||||||||||||
Revenue per vehicle retailed: | |||||||||||||||||||||||||||||
New | $ | 32,780 | $ | 33,416 | $ | (636 | ) | (1.9 | ) | $ | 32,669 | $ | 33,040 | $ | (371 | ) | (1.1 | ) | |||||||||||
Used | $ | 17,779 | $ | 17,648 | $ | 131 | 0.7 | $ | 17,697 | $ | 17,762 | $ | (65 | ) | (0.4 | ) | |||||||||||||
Gross profit per vehicle retailed: | |||||||||||||||||||||||||||||
New | $ | 2,117 | $ | 2,454 | $ | (337 | ) | (13.7 | ) | $ | 2,155 | $ | 2,443 | $ | (288 | ) | (11.8 | ) | |||||||||||
Used | $ | 1,588 | $ | 1,524 | $ | 64 | 4.2 | $ | 1,638 | $ | 1,690 | $ | (52 | ) | (3.1 | ) | |||||||||||||
Finance and insurance | $ | 1,290 | $ | 1,213 | $ | 77 | 6.3 | $ | 1,261 | $ | 1,193 | $ | 68 | 5.7 | |||||||||||||||
Operating Percentages | Three Months Ended September 30, | Nine Months Ended September 30, | |||||
2012 (%) | 2011 (%) | 2012 (%) | 2011 (%) | ||||
Revenue mix percentages: | |||||||
New vehicle | 57.0 | 53.7 | 55.9 | 53.3 | |||
Used vehicle | 23.8 | 26.0 | 24.4 | 25.9 | |||
Parts and service | 15.2 | 16.5 | 15.7 | 16.9 | |||
Finance and insurance, net | 3.7 | 3.5 | 3.7 | 3.4 | |||
Other | 0.3 | 0.3 | 0.3 | 0.5 | |||
100.0 | 100.0 | 100.0 | 100.0 | ||||
Gross profit mix percentages: | |||||||
New vehicle | 23.2 | 24.0 | 22.9 | 23.2 | |||
Used vehicle | 11.7 | 11.6 | 12.5 | 12.9 | |||
Parts and service | 40.4 | 42.1 | 40.8 | 42.4 | |||
Finance and insurance | 23.6 | 21.2 | 22.8 | 20.3 | |||
Other | 1.1 | 1.1 | 1.0 | 1.2 | |||
100.0 | 100.0 | 100.0 | 100.0 | ||||
Operating items as a percentage of revenue: | |||||||
Gross profit: | |||||||
New vehicle | 6.5 | 7.3 | 6.6 | 7.4 | |||
Used vehicle - retail | 8.9 | 8.6 | 9.3 | 9.5 | |||
Parts and service | 42.2 | 41.9 | 42.0 | 42.5 | |||
Total | 15.8 | 16.4 | 16.1 | 17.0 | |||
Selling, general and administrative expenses | 11.1 | 11.7 | 11.4 | 12.2 | |||
Operating income | 4.2 | 4.1 | 4.1 | 4.2 | |||
Operating items as a percentage of total gross profit: | |||||||
Selling, general and administrative expenses | 70.0 | 71.5 | 70.5 | 71.7 | |||
Operating income | 26.3 | 25.1 | 25.7 | 24.8 | |||
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions, except per vehicle data)
Segment Operating Highlights | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
2012 | 2011 | $ Variance | % Variance | 2012 | 2011 | $ Variance | % Variance | |||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||
Domestic | $ | 1,285.0 | $ | 1,204.4 | $ | 80.6 | 6.7 | $ | 3,809.2 | $ | 3,445.5 | $ | 363.7 | 10.6 | ||||||||||||||
Import | 1,523.3 | 1,268.8 | 254.5 | 20.1 | 4,365.7 | 3,692.1 | 673.6 | 18.2 | ||||||||||||||||||||
Premium luxury | 1,086.4 | 998.2 | 88.2 | 8.8 | 3,202.0 | 2,905.4 | 296.6 | 10.2 | ||||||||||||||||||||
Total segment revenue | 3,894.7 | 3,471.4 | 423.3 | 12.2 | 11,376.9 | 10,043.0 | 1,333.9 | 13.3 | ||||||||||||||||||||
Corporate and other | 39.1 | 35.1 | 4.0 | 11.4 | 118.4 | 110.9 | 7.5 | 6.8 | ||||||||||||||||||||
Total consolidated revenue | $ | 3,933.8 | $ | 3,506.5 | $ | 427.3 | 12.2 | $ | 11,495.3 | $ | 10,153.9 | $ | 1,341.4 | 13.2 | ||||||||||||||
*Segment income | ||||||||||||||||||||||||||||
Domestic | $ | 51.9 | $ | 46.7 | $ | 5.2 | 11.1 | $ | 155.2 | $ | 135.8 | $ | 19.4 | 14.3 | ||||||||||||||
Import | 69.0 | 61.1 | 7.9 | 12.9 | 198.1 | 178.4 | 19.7 | 11.0 | ||||||||||||||||||||
Premium luxury | 62.9 | 53.4 | 9.5 | 17.8 | 190.0 | 170.8 | 19.2 | 11.2 | ||||||||||||||||||||
Total segment income | 183.8 | 161.2 | 22.6 | 14.0 | 543.3 | 485.0 | 58.3 | 12.0 | ||||||||||||||||||||
Corporate and other | (31.5 | ) | (26.8 | ) | (4.7 | ) | (99.6 | ) | (88.3 | ) | (11.3 | ) | ||||||||||||||||
Add: Floorplan interest expense | 11.4 | 9.7 | 1.7 | 32.9 | 31.8 | 1.1 | ||||||||||||||||||||||
Operating income | $ | 163.7 | $ | 144.1 | $ | 19.6 | 13.6 | $ | 476.6 | $ | 428.5 | $ | 48.1 | 11.2 | ||||||||||||||
* Segment income is defined as operating income less floorplan interest expense | ||||||||||||||||||||||||||||
Retail new vehicle unit sales: | ||||||||||||||||||||||||||||
Domestic | 21,579 | 19,789 | 1,790 | 9.0 | 64,085 | 56,276 | 7,809 | 13.9 | ||||||||||||||||||||
Import | 35,578 | 26,404 | 9,174 | 34.7 | 100,331 | 79,000 | 21,331 | 27.0 | ||||||||||||||||||||
Premium luxury | 11,193 | 10,116 | 1,077 | 10.6 | 32,437 | 28,567 | 3,870 | 13.5 | ||||||||||||||||||||
68,350 | 56,309 | 12,041 | 21.4 | 196,853 | 163,843 | 33,010 | 20.1 | |||||||||||||||||||||
Brand Mix - New Vehicle Retail Units Sold | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||
2012 (%) | 2011 (%) | 2012 (%) | 2011 (%) | |||||||||||||||||||||||||
Domestic: | ||||||||||||||||||||||||||||
Ford, Lincoln | 17.2 | 19.4 | 17.7 | 18.7 | ||||||||||||||||||||||||
Chevrolet, Buick, Cadillac, GMC | 10.5 | 12.2 | 11.1 | 12.4 | ||||||||||||||||||||||||
Chrysler, Jeep, Dodge | 3.9 | 3.5 | 3.8 | 3.2 | ||||||||||||||||||||||||
Domestic total | 31.6 | 35.1 | 32.6 | 34.3 | ||||||||||||||||||||||||
Import: | ||||||||||||||||||||||||||||
Honda | 11.6 | 9.1 | 11.6 | 11.1 | ||||||||||||||||||||||||
Toyota | 21.2 | 18.1 | 20.8 | 18.2 | ||||||||||||||||||||||||
Nissan | 12.0 | 12.7 | 11.6 | 11.9 | ||||||||||||||||||||||||
Other imports(1) | 7.2 | 7.0 | 6.9 | 7.1 | ||||||||||||||||||||||||
Import total | 52.0 | 46.9 | 50.9 | 48.3 | ||||||||||||||||||||||||
Premium Luxury: | ||||||||||||||||||||||||||||
Mercedes-Benz | 7.0 | 8.1 | 7.3 | 7.7 | ||||||||||||||||||||||||
BMW | 4.6 | 5.2 | 4.3 | 4.9 | ||||||||||||||||||||||||
Lexus | 2.1 | 2.0 | 2.0 | 1.9 | ||||||||||||||||||||||||
Other premium luxury (Audi, Land Rover, Porsche)(1) | 2.7 | 2.7 | 2.9 | 2.9 | ||||||||||||||||||||||||
Premium Luxury total | 16.4 | 18.0 | 16.5 | 17.4 | ||||||||||||||||||||||||
100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||||||||||||||
(1) As of March 31, 2012, we revised the basis of segmentation for our Import and Premium Luxury segments to reclassify our Audi franchises from the Import segment to the Premium Luxury segment. In connection with this change, we have reclassified historical amounts to conform to our current segment presentation. We have five Audi franchises for which we reclassified revenue of $49.5 million and segment income of $3.9 million during the three months ended September 30, 2011, and revenue of $136.9 million and segment income of $9.5 million during the nine months ended September 30, 2011.
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA, Continued
($ in millions, except per share data)
Capital Expenditures / Stock Repurchases | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Capital expenditures (1) | $ | 45.8 | $ | 50.0 | $ | 122.8 | $ | 113.6 | |||||||
Acquisitions | $ | — | $ | — | $ | — | $ | 64.2 | |||||||
Proceeds from exercises of stock options | $ | 20.3 | $ | 26.3 | $ | 22.1 | $ | 66.3 | |||||||
Stock repurchases: | |||||||||||||||
Aggregate purchase price | $ | — | $ | 195.9 | $ | 531.6 | $ | 365.6 | |||||||
Shares repurchased (in millions) | — | 5.7 | 15.4 | 10.8 | |||||||||||
Floorplan Assistance and Expense | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2012 | 2011 | Variance | 2012 | 2011 | Variance | ||||||||||||||||||
Floorplan assistance earned (included in cost of sales) | $ | 18.8 | $ | 15.7 | $ | 3.1 | $ | 54.5 | $ | 44.7 | $ | 9.8 | |||||||||||
Floorplan interest expense (new vehicles) | (10.9 | ) | (9.1 | ) | (1.8 | ) | (31.6 | ) | (30.0 | ) | (1.6 | ) | |||||||||||
Net new vehicle inventory carrying benefit | $ | 7.9 | $ | 6.6 | $ | 1.3 | $ | 22.9 | $ | 14.7 | $ | 8.2 | |||||||||||
Balance Sheet and Other Highlights | September 30, 2012 | December 31, 2011 | September 30, 2011 | ||||||||
Cash and cash equivalents | $ | 98.6 | $ | 86.6 | $ | 67.3 | |||||
Inventory | $ | 2,142.1 | $ | 1,809.2 | $ | 1,601.7 | |||||
Total floorplan notes payable | $ | 2,200.8 | $ | 1,898.8 | $ | 1,511.3 | |||||
Non-vehicle debt | $ | 1,892.3 | $ | 1,647.0 | $ | 1,487.4 | |||||
Equity | $ | 1,638.5 | $ | 1,894.6 | $ | 2,024.9 | |||||
New days supply (industry standard of selling days, including fleet) | 58 days | 50 days | 45 days | ||||||||
Used days supply (trailing calendar month days) (2) | 29 days | 31 days | 30 days | ||||||||
Key Credit Agreement Covenant Compliance Calculations | ||
Ratio of funded indebtedness/ | ||
Adjusted EBITDA | 2.74x | |
Covenant | less than | 3.75x |
Ratio of funded indebtedness including floorplan/ | |||
Total capitalization including floorplan | 56.4 | % | |
Covenant | less than | 65.0 | % |
(1) Includes accrued construction in progress and excludes property acquired under capital leases.
(2) As of December 31, 2011, we have revised our method of calculating used vehicle days supply from a dollar day supply to a unit day supply (including wholesale units). We have revised prior periods to conform to our revised method of calculation.
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** | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
As reported | $ | 81.6 | $ | 70.7 | $ | 0.66 | $ | 0.48 | |||||||
Discontinued operations, net of income taxes | 0.3 | — | $ | — | $ | — | |||||||||
From continuing operations, as reported | $ | 81.9 | $ | 70.7 | $ | 0.66 | $ | 0.48 | |||||||
Adjusted | $ | 81.9 | $ | 70.7 | $ | 0.66 | $ | 0.48 | |||||||
Nine Months Ended September 30, | |||||||||||||||
Net Income | Diluted Earnings Per Share** | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
As reported | $ | 233.2 | $ | 212.0 | $ | 1.84 | $ | 1.42 | |||||||
Discontinued operations, net of income taxes | 1.2 | 2.3 | $ | 0.01 | $ | 0.02 | |||||||||
From continuing operations, as reported | 234.4 | 214.3 | $ | 1.85 | $ | 1.43 | |||||||||
Franchise rights impairment | 2.6 | — | $ | 0.02 | $ | — | |||||||||
Adjusted | $ | 237.0 | $ | 214.3 | $ | 1.88 | $ | 1.43 | |||||||
* | 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, | |||||||||||||||||||||||||||
2012 | 2011 | $ Variance | % Variance | 2012 | 2011 | $ Variance | % Variance | ||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
New vehicle | $ | 2,238.5 | $ | 1,881.6 | $ | 356.9 | 19.0 | $ | 6,390.0 | $ | 5,413.3 | $ | 976.7 | 18.0 | |||||||||||||||
Retail used vehicle | 809.1 | 780.5 | 28.6 | 3.7 | 2,425.5 | 2,293.9 | 131.6 | 5.7 | |||||||||||||||||||||
Wholesale | 123.5 | 131.4 | (7.9 | ) | (6.0 | ) | 351.1 | 336.7 | 14.4 | 4.3 | |||||||||||||||||||
Used vehicle | 932.6 | 911.9 | 20.7 | 2.3 | 2,776.6 | 2,630.6 | 146.0 | 5.6 | |||||||||||||||||||||
Parts and service | 595.3 | 578.0 | 17.3 | 3.0 | 1,789.4 | 1,720.0 | 69.4 | 4.0 | |||||||||||||||||||||
Finance and insurance, net | 146.7 | 121.9 | 24.8 | 20.3 | 419.9 | 349.6 | 70.3 | 20.1 | |||||||||||||||||||||
Other | 13.0 | 13.1 | (0.1 | ) | 40.0 | 40.4 | (0.4 | ) | |||||||||||||||||||||
Total revenue | $ | 3,926.1 | $ | 3,506.5 | $ | 419.6 | 12.0 | $ | 11,415.9 | $ | 10,153.9 | $ | 1,262.0 | 12.4 | |||||||||||||||
Gross profit: | |||||||||||||||||||||||||||||
New vehicle | $ | 144.6 | $ | 138.2 | $ | 6.4 | 4.6 | $ | 421.5 | $ | 400.2 | $ | 21.3 | 5.3 | |||||||||||||||
Retail used vehicle | 72.2 | 67.4 | 4.8 | 7.1 | 224.5 | 218.3 | 6.2 | 2.8 | |||||||||||||||||||||
Wholesale | 0.2 | (0.9 | ) | 1.1 | 4.8 | 4.9 | (0.1 | ) | |||||||||||||||||||||
Used vehicle | 72.4 | 66.5 | 5.9 | 8.9 | 229.3 | 223.2 | 6.1 | 2.7 | |||||||||||||||||||||
Parts and service | 251.2 | 241.9 | 9.3 | 3.8 | 751.1 | 731.6 | 19.5 | 2.7 | |||||||||||||||||||||
Finance and insurance | 146.7 | 121.9 | 24.8 | 20.3 | 419.9 | 349.6 | 70.3 | 20.1 | |||||||||||||||||||||
Other | 6.3 | 6.7 | (0.4 | ) | 20.6 | 20.2 | 0.4 | ||||||||||||||||||||||
Total gross profit | $ | 621.2 | $ | 575.2 | $ | 46.0 | 8.0 | $ | 1,842.4 | $ | 1,724.8 | $ | 117.6 | 6.8 | |||||||||||||||
Retail vehicle unit sales: | |||||||||||||||||||||||||||||
New | 68,251 | 56,309 | 11,942 | 21.2 | 195,406 | 163,843 | 31,563 | 19.3 | |||||||||||||||||||||
Used | 45,434 | 44,226 | 1,208 | 2.7 | 136,958 | 129,148 | 7,810 | 6.0 | |||||||||||||||||||||
113,685 | 100,535 | 13,150 | 13.1 | 332,364 | 292,991 | 39,373 | 13.4 | ||||||||||||||||||||||
Revenue per vehicle retailed: | |||||||||||||||||||||||||||||
New | $ | 32,798 | $ | 33,416 | $ | (618 | ) | (1.8 | ) | $ | 32,701 | $ | 33,040 | $ | (339 | ) | (1.0 | ) | |||||||||||
Used | $ | 17,808 | $ | 17,648 | $ | 160 | 0.9 | $ | 17,710 | $ | 17,762 | $ | (52 | ) | (0.3 | ) | |||||||||||||
Gross profit per vehicle retailed: | |||||||||||||||||||||||||||||
New | $ | 2,119 | $ | 2,454 | $ | (335 | ) | (13.7 | ) | $ | 2,157 | $ | 2,443 | $ | (286 | ) | (11.7 | ) | |||||||||||
Used | $ | 1,589 | $ | 1,524 | $ | 65 | 4.3 | $ | 1,639 | $ | 1,690 | $ | (51 | ) | (3.0 | ) | |||||||||||||
Finance and insurance | $ | 1,290 | $ | 1,213 | $ | 77 | 6.3 | $ | 1,263 | $ | 1,193 | $ | 70 | 5.9 | |||||||||||||||
Operating Percentages | Three Months Ended September 30, | Nine Months Ended September 30, | |||||
2012 (%) | 2011 (%) | 2012 (%) | 2011 (%) | ||||
Revenue mix percentages: | |||||||
New vehicle | 57.0 | 53.7 | 56.0 | 53.3 | |||
Used vehicle | 23.8 | 26.0 | 24.3 | 25.9 | |||
Parts and service | 15.2 | 16.5 | 15.7 | 16.9 | |||
Finance and insurance, net | 3.7 | 3.5 | 3.7 | 3.4 | |||
Other | 0.3 | 0.3 | 0.3 | 0.5 | |||
100.0 | 100.0 | 100.0 | 100.0 | ||||
Gross profit mix percentages: | |||||||
New vehicle | 23.3 | 24.0 | 22.9 | 23.2 | |||
Used vehicle | 11.7 | 11.6 | 12.4 | 12.9 | |||
Parts and service | 40.4 | 42.1 | 40.8 | 42.4 | |||
Finance and insurance | 23.6 | 21.2 | 22.8 | 20.3 | |||
Other | 1.0 | 1.1 | 1.1 | 1.2 | |||
100.0 | 100.0 | 100.0 | 100.0 | ||||
Operating items as a percentage of revenue: | |||||||
Gross Profit: | |||||||
New vehicle | 6.5 | 7.3 | 6.6 | 7.4 | |||
Used vehicle - retail | 8.9 | 8.6 | 9.3 | 9.5 | |||
Parts and service | 42.2 | 41.9 | 42.0 | 42.5 | |||
Total | 15.8 | 16.4 | 16.1 | 17.0 | |||