- Third Quarter 2023 Revenue was $6.9
billion, compared to $6.7
billion a year ago, driven by New Vehicle and After-Sales
growth
- Third Quarter 2023 After-Sales gross profit was a record
$546 million, an increase of 14%
compared to prior year
- Third Quarter 2023 Earnings Per Share (EPS) was $5.54, compared to EPS of $6.31 and Adjusted EPS of $6.00 a year ago
- Repurchased 1.3 million shares of common stock for an aggregate
purchase price of $200 million
FORT
LAUDERDALE, Fla., Oct. 27,
2023 /PRNewswire/ -- AutoNation, Inc. (NYSE:
AN), America's most admired automotive retailer, today reported
Third Quarter 2023 EPS of $5.54,
compared to Third Quarter 2022 EPS of $6.31 and Adjusted EPS of $6.00, which excluded $0.31 of favorable items. Third Quarter 2023
revenue was $6.9 billion compared to
$6.7 billion a year ago.
Reconciliations of non-GAAP financial measures are included in the
attached financial tables.
"During the quarter, we saw double digit year-over-year growth
in new vehicle sales and strong sequential growth in used vehicle
volume. This resulted in the first year-over-year growth in total
unit sales in eight quarters. We also continue to see the
significant benefits of the focus in our After-Sales business,
which delivered record revenue and gross profit. Overall,
AutoNation delivered a solid performance in this evolving operating
environment. Additionally, we continued our investments in
growth initiatives and deployed capital to create value for our
shareholders," said Mike Manley,
AutoNation's CEO.
Operational Summary
Third Quarter 2023 Operational Summary compared to the
year-ago period:
Selected GAAP
Financial Data
|
($ in millions, except
per share data)
|
|
Three Months Ended Sep
30,
|
|
2023
|
2022
|
YoY
|
|
|
|
|
Revenue
|
$ 6,892.7
|
$ 6,666.0
|
3 %
|
Gross Profit
|
$ 1,294.6
|
$ 1,312.8
|
-1 %
|
Operating
Income
|
$
419.5
|
$
522.5
|
-20 %
|
Net Income
|
$
243.7
|
$
352.6
|
-31 %
|
Diluted
EPS
|
$
5.54
|
$
6.31
|
-12 %
|
|
|
|
|
New Vehicle Retail Unit
Sales
|
62,289
|
55,565
|
12 %
|
Used Vehicle Retail
Unit Sales
|
72,517
|
75,355
|
-4 %
|
|
|
|
|
Selected Non-GAAP
Financial Data
|
($ in millions, except
per share data)
|
|
Three Months Ended Sep
30,
|
|
2023
|
2022
|
YoY
|
|
|
|
|
Adjusted Operating
Income
|
$
415.8
|
$
495.3
|
-16 %
|
Adjusted Net
Income
|
$
243.7
|
$
335.6
|
-27 %
|
Adjusted Diluted
EPS
|
$
5.54
|
$
6.00
|
-8 %
|
- Revenue – Revenue was $6.9
billion, an increase of $227
million or 3% from the year-ago period. Higher New Vehicle
and After-Sales revenue offset the decrease in Used Vehicle
revenue.
- New Vehicle Revenue – $3.2 billion, an increase of $324 million or 11%.
- Used Vehicle Revenue – $2.2 billion, a decrease of $230 million or 10%.
- Customer Financial Services Revenue –
$370 million, an increase of
$9 million or 2%.
- After-Sales Revenue – $1.2 billion,
an increase of $125 million or
12%.
- Gross Profit - Gross profit totaled $1.29 billion, down $18
million from $1.31 billion a
year ago.
- New Vehicle Gross Profit - New vehicle gross
profit decreased $79 million
reflecting gross profit per vehicle retailed of $4,025 compared to $5,934 a year ago, partially offset by a 12%
increase in unit sales.
- Used Vehicle Gross Profit - Used vehicle
gross profit decreased $14 million
reflecting a gross profit per vehicle retailed of $1,746 compared to $1,870 a year ago and a 4% decrease in unit
sales.
- Customer Financial Services Gross Profit -
Customer Financial Services gross profit per vehicle retailed was
$2,741, largely flat from a year
ago.
- After-Sales Gross Profit - After-Sales gross
profit was a record $546 million, an
increase of $67 million or 14% from a
year ago.
- SG&A as a Percentage of Gross Profit –
SG&A as a percentage of gross profit was 63.3%, or 63.6% on an
adjusted basis, and was significantly lower than pre-pandemic
levels and includes incremental investments in technology and new
business initiatives as well as advertising to support the
self-sourcing of used vehicles.
Capital Allocation, Liquidity and Leverage
During the
quarter, cash from operating activities totaled $256 million, capital expenditures were
$87 million, and AutoNation
repurchased 1.3 million shares of common stock for an aggregate
purchase price of $200 million. As of
October 25, 2023, AutoNation has
approximately $439 million remaining
under its current Board authorization for share repurchase. The
Company has approximately 43 million shares outstanding, which
represents a 10% decrease year-to-date and a 49% decrease from the
83 million shares outstanding at the end of 2020.
As of September 30, 2023,
AutoNation had $1.6 billion of
liquidity, including $64 million in
cash and approximately $1.55 billion
of availability under its revolving credit facility. During the
third quarter of 2023, the company increased its commercial paper
program capacity to $1.9 billion,
matching the capacity under its revolving credit facility. The
Company's covenant leverage ratio was 2.0x at quarter
end. AutoNation had approximately $3.94
billion of non-vehicle debt outstanding as of September 30, 2023.
Segment Results
Segment results(1) for the
Third Quarter of 2023 were as follows:
- Domestic - Domestic segment revenue of
$2.0 billion decreased $49 million from a year ago. Domestic segment
income(2) was $107 million
compared to $143 million a year ago
and $116 million in the Second
Quarter 2023.
- Import – Import segment revenue of $2.1 billion increased $202 million from a year ago. Import segment
income(2) was $165 million
compared to $180 million a year ago
and $173 million in the Second
Quarter 2023.
- Premium Luxury - Premium Luxury segment revenue
of $2.5 billion increased
$10 million from a year ago. Premium
Luxury segment income(2) was $193
million compared to $235
million a year ago and $222
million in the Second Quarter 2023.
Selected GAAP
Financial Data
|
($ in millions, except
per share data)
|
|
Nine Months Ended Sep
30,
|
|
2023
|
2022
|
YoY
|
|
|
|
|
Revenue
|
$
20,181.5
|
$
20,288.0
|
-1 %
|
Gross Profit
|
$ 3,916.3
|
$ 3,983.4
|
-2 %
|
Operating
Income
|
$ 1,302.0
|
$ 1,599.6
|
-19 %
|
Net Income
|
$
804.9
|
$ 1,091.0
|
-26 %
|
Diluted EPS
|
$
17.65
|
$
18.52
|
-5 %
|
|
|
|
|
New Vehicle Retail Unit
Sales
|
179,798
|
169,897
|
6 %
|
Used Vehicle Retail
Unit Sales
|
208,868
|
232,198
|
-10 %
|
|
|
|
|
Selected Non-GAAP
Financial Data
|
($ in millions, except
per share data)
|
|
Nine Months Ended Sep
30,
|
|
2023
|
2022
|
YoY
|
|
|
|
|
Adjusted Operating
Income
|
$ 1,324.8
|
$ 1,552.1
|
-15 %
|
Adjusted Net
Income
|
$
817.3
|
$ 1,074.0
|
-24 %
|
Adjusted Diluted
EPS
|
$
17.92
|
$
18.23
|
-2 %
|
The Third Quarter conference call will begin at 9:00 a.m. Eastern Time and may be accessed by
telephone at 833-470-1428 (Conference ID: 575899) 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 12:00 p.m. Eastern Time on October 27, 2023, through November 17, 2023, by calling 866-813-9403
(Conference ID: 534785). Additional information regarding
AutoNation's results can be found in the Investor Presentation
available at: investors.autonation.com.
(1)
|
AutoNation has three
reportable segments: Domestic, Import, and Premium Luxury. The
Domestic segment is comprised of stores that sell vehicles
manufactured by Ford, General Motors, and Stellantis; the Import
segment is comprised of stores that sell vehicles manufactured
primarily by Toyota, Honda, Hyundai, Subaru, and Nissan; and the
Premium Luxury segment is comprised of stores that sell vehicles
manufactured primarily by Mercedes-Benz, BMW, Lexus, Audi, and
Jaguar Land Rover.
|
(2)
|
Segment income
represents income for each of AutoNation's reportable segments and
is defined as operating income less floorplan interest
expense.
|
About AutoNation, Inc.
AutoNation, a provider of
personalized transportation services, is driven by innovation and
transformation. As one of America's most admired companies,
AutoNation delivers a peerless Customer experience recognized by
data-driven consumer insight leaders, Reputation and J.D. Power.
Through its brand affinity, the AutoNation Brand is synonymous with
"DRVPNK." AutoNation has a singular focus on personalized
transportation services that are easy, transparent, and
Customer-centric.
Please visit www.autonation.com, investors.autonation.com, and
www.twitter.com/AutoNation, where AutoNation discloses additional
information about the Company, its business, and its results of
operations. Please also visit www.autonationdrive.com, AutoNation's
automotive blog, for information regarding the AutoNation
community, the automotive industry, and current automotive news and
trends.
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," "targets,"
"projects," "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, and investments,
including AutoNation USA,
AutoNation Finance, and our mobile automotive repair and
maintenance business, statements regarding our investments in
digital and online capabilities and mobility solutions, statements
regarding our expectations for the future performance of our
business and the automotive retail industry, and 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: our ability to implement successfully our strategic
acquisitions, initiatives, partnerships, and investments, including
our investments in digital and online capabilities and mobility
solutions; 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 acquire and integrate
successfully new acquisitions; restrictions imposed by vehicle
manufacturers and our ability to obtain manufacturer approval for
franchise acquisitions; economic conditions, including changes in
unemployment, interest, and/or inflation rates, consumer demand,
fuel prices, and tariffs; supply chain disruptions and inventory
availability; new and used vehicle margins; our ability to attain
planned sales volumes within our expected time frames; our ability
to successfully implement and maintain expense controls; the
successful resolution of labor strikes impacting domestic vehicle
manufacturers; the success and financial viability and the
incentive and marketing programs of vehicle manufacturers and
distributors with which we hold franchises; 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,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
New vehicle
|
$
|
3,187.6
|
$
|
2,863.9
|
$
|
9,400.5
|
$
|
8,606.9
|
|
Used vehicle
|
|
2,172.1
|
|
2,401.7
|
|
6,292.7
|
|
7,494.5
|
|
Parts and
service
|
|
1,157.4
|
|
1,032.1
|
|
3,392.5
|
|
3,072.3
|
|
Finance and insurance,
net
|
|
369.5
|
|
360.7
|
|
1,071.4
|
|
1,092.2
|
|
Other
|
|
6.1
|
|
7.6
|
|
24.4
|
|
22.1
|
Total
revenue
|
|
6,892.7
|
|
6,666.0
|
|
20,181.5
|
|
20,288.0
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
|
New vehicle
|
|
2,936.9
|
|
2,534.2
|
|
8,575.2
|
|
7,578.7
|
|
Used vehicle
|
|
2,044.3
|
|
2,259.7
|
|
5,876.2
|
|
7,059.4
|
|
Parts and
service
|
|
611.6
|
|
553.5
|
|
1,793.1
|
|
1,650.9
|
|
Other
|
|
5.3
|
|
5.8
|
|
20.7
|
|
15.6
|
Total cost of
sales
|
|
5,598.1
|
|
5,353.2
|
|
16,265.2
|
|
16,304.6
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
1,294.6
|
|
1,312.8
|
|
3,916.3
|
|
3,983.4
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative expenses
|
|
819.3
|
|
763.2
|
|
2,444.9
|
|
2,259.4
|
Depreciation and
amortization
|
|
55.7
|
|
50.1
|
|
163.1
|
|
148.9
|
Other (income) expense,
net(1)
|
|
0.1
|
|
(23.0)
|
|
6.3
|
|
(24.5)
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
419.5
|
|
522.5
|
|
1,302.0
|
|
1,599.6
|
|
|
|
|
|
|
|
|
|
|
Non-operating income
(expense) items:
|
|
|
|
|
|
|
|
|
|
Floorplan interest
expense
|
|
(38.3)
|
|
(10.7)
|
|
(98.2)
|
|
(21.7)
|
|
Other interest
expense
|
|
(48.8)
|
|
(33.7)
|
|
(135.9)
|
|
(97.4)
|
|
Other income (loss),
net(2)
|
|
(5.0)
|
|
(4.6)
|
|
4.6
|
|
(24.7)
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations before income taxes
|
|
327.4
|
|
473.5
|
|
1,072.5
|
|
1,455.8
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision
|
|
83.7
|
|
120.8
|
|
268.5
|
|
364.5
|
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
|
243.7
|
|
352.7
|
|
804.0
|
|
1,091.3
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
discontinued operations, net of income taxes
|
|
-
|
|
(0.1)
|
|
0.9
|
|
(0.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
243.7
|
$
|
352.6
|
$
|
804.9
|
$
|
1,091.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share(3):
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
5.54
|
$
|
6.31
|
$
|
17.63
|
$
|
18.53
|
|
Discontinued
operations
|
$
|
-
|
$
|
-
|
$
|
0.02
|
$
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
5.54
|
$
|
6.31
|
$
|
17.65
|
$
|
18.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding
|
|
44.0
|
|
55.9
|
|
45.6
|
|
58.9
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding, net of treasury stock, at period end
|
|
42.8
|
|
52.3
|
|
42.8
|
|
52.3
|
|
|
(1)
|
Current periods
primarily include results of our finance company, including
expected credit loss expense and gains on asset sales, as well as
gains on a legal settlement.
Prior periods primarily include gains on business/property
divestitures and legal settlements.
|
(2)
|
Includes gains (losses)
related to changes in the cash surrender value of corporate-owned
life insurance for deferred compensation plan
participants.
|
(3)
|
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,
|
|
|
|
|
2023
|
|
2022
|
|
$ Variance
|
|
% Variance
|
|
2023
|
|
2022
|
|
$ Variance
|
|
% Variance
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
|
$
|
3,187.6
|
$
|
2,863.9
|
$
|
323.7
|
|
11.3
|
$
|
9,400.5
|
$
|
8,606.9
|
$
|
793.6
|
|
9.2
|
|
|
Retail used
vehicle
|
|
2,025.1
|
|
2,253.1
|
|
(228.0)
|
|
(10.1)
|
|
5,858.4
|
|
7,007.5
|
|
(1,149.1)
|
|
(16.4)
|
|
|
Wholesale
|
|
147.0
|
|
148.6
|
|
(1.6)
|
|
(1.1)
|
|
434.3
|
|
487.0
|
|
(52.7)
|
|
(10.8)
|
|
Used vehicle
|
|
2,172.1
|
|
2,401.7
|
|
(229.6)
|
|
(9.6)
|
|
6,292.7
|
|
7,494.5
|
|
(1,201.8)
|
|
(16.0)
|
|
Finance and insurance,
net
|
|
369.5
|
|
360.7
|
|
8.8
|
|
2.4
|
|
1,071.4
|
|
1,092.2
|
|
(20.8)
|
|
(1.9)
|
|
|
Total variable
operations
|
|
5,729.2
|
|
5,626.3
|
|
102.9
|
|
1.8
|
|
16,764.6
|
|
17,193.6
|
|
(429.0)
|
|
(2.5)
|
|
Parts and
service
|
|
1,157.4
|
|
1,032.1
|
|
125.3
|
|
12.1
|
|
3,392.5
|
|
3,072.3
|
|
320.2
|
|
10.4
|
|
Other
|
|
6.1
|
|
7.6
|
|
(1.5)
|
|
|
|
24.4
|
|
22.1
|
|
2.3
|
|
|
Total
revenue
|
$
|
6,892.7
|
$
|
6,666.0
|
$
|
226.7
|
|
3.4
|
$
|
20,181.5
|
$
|
20,288.0
|
$
|
(106.5)
|
|
(0.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
|
$
|
250.7
|
$
|
329.7
|
$
|
(79.0)
|
|
(24.0)
|
$
|
825.3
|
$
|
1,028.2
|
$
|
(202.9)
|
|
(19.7)
|
|
|
Retail used
vehicle
|
|
126.6
|
|
140.9
|
|
(14.3)
|
|
(10.1)
|
|
398.3
|
|
413.4
|
|
(15.1)
|
|
(3.7)
|
|
|
Wholesale
|
|
1.2
|
|
1.1
|
|
0.1
|
|
|
|
18.2
|
|
21.7
|
|
(3.5)
|
|
|
|
Used vehicle
|
|
127.8
|
|
142.0
|
|
(14.2)
|
|
(10.0)
|
|
416.5
|
|
435.1
|
|
(18.6)
|
|
(4.3)
|
|
Finance and
insurance
|
|
369.5
|
|
360.7
|
|
8.8
|
|
2.4
|
|
1,071.4
|
|
1,092.2
|
|
(20.8)
|
|
(1.9)
|
|
|
Total variable
operations
|
|
748.0
|
|
832.4
|
|
(84.4)
|
|
(10.1)
|
|
2,313.2
|
|
2,555.5
|
|
(242.3)
|
|
(9.5)
|
|
Parts and
service
|
|
545.8
|
|
478.6
|
|
67.2
|
|
14.0
|
|
1,599.4
|
|
1,421.4
|
|
178.0
|
|
12.5
|
|
Other
|
|
0.8
|
|
1.8
|
|
(1.0)
|
|
|
|
3.7
|
|
6.5
|
|
(2.8)
|
|
|
Total gross
profit
|
|
1,294.6
|
|
1,312.8
|
|
(18.2)
|
|
(1.4)
|
|
3,916.3
|
|
3,983.4
|
|
(67.1)
|
|
(1.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative expenses
|
|
819.3
|
|
763.2
|
|
(56.1)
|
|
(7.4)
|
|
2,444.9
|
|
2,259.4
|
|
(185.5)
|
|
(8.2)
|
Depreciation and
amortization
|
|
55.7
|
|
50.1
|
|
(5.6)
|
|
|
|
163.1
|
|
148.9
|
|
(14.2)
|
|
|
Other (income) expense,
net
|
|
0.1
|
|
(23.0)
|
|
(23.1)
|
|
|
|
6.3
|
|
(24.5)
|
|
(30.8)
|
|
|
Operating
income
|
|
419.5
|
|
522.5
|
|
(103.0)
|
|
(19.7)
|
|
1,302.0
|
|
1,599.6
|
|
(297.6)
|
|
(18.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating income
(expense) items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Floorplan interest
expense
|
|
(38.3)
|
|
(10.7)
|
|
(27.6)
|
|
|
|
(98.2)
|
|
(21.7)
|
|
(76.5)
|
|
|
|
Other interest
expense
|
|
(48.8)
|
|
(33.7)
|
|
(15.1)
|
|
|
|
(135.9)
|
|
(97.4)
|
|
(38.5)
|
|
|
|
Other income (loss),
net
|
|
(5.0)
|
|
(4.6)
|
|
(0.4)
|
|
|
|
4.6
|
|
(24.7)
|
|
29.3
|
|
|
Income from continuing
operations before income taxes
|
$
|
327.4
|
$
|
473.5
|
$
|
(146.1)
|
|
(30.9)
|
$
|
1,072.5
|
$
|
1,455.8
|
$
|
(383.3)
|
|
(26.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail vehicle unit
sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
|
|
62,289
|
|
55,565
|
|
6,724
|
|
12.1
|
|
179,798
|
|
169,897
|
|
9,901
|
|
5.8
|
|
Used
|
|
72,517
|
|
75,355
|
|
(2,838)
|
|
(3.8)
|
|
208,868
|
|
232,198
|
|
(23,330)
|
|
(10.0)
|
|
|
|
|
134,806
|
|
130,920
|
|
3,886
|
|
3.0
|
|
388,666
|
|
402,095
|
|
(13,429)
|
|
(3.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per vehicle
retailed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
|
$
|
51,174
|
$
|
51,541
|
$
|
(367)
|
|
(0.7)
|
$
|
52,284
|
$
|
50,660
|
$
|
1,624
|
|
3.2
|
|
Used
|
$
|
27,926
|
$
|
29,900
|
$
|
(1,974)
|
|
(6.6)
|
$
|
28,048
|
$
|
30,179
|
$
|
(2,131)
|
|
(7.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit per
vehicle retailed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
|
$
|
4,025
|
$
|
5,934
|
$
|
(1,909)
|
|
(32.2)
|
$
|
4,590
|
$
|
6,052
|
$
|
(1,462)
|
|
(24.2)
|
|
Used
|
$
|
1,746
|
$
|
1,870
|
$
|
(124)
|
|
(6.6)
|
$
|
1,907
|
$
|
1,780
|
$
|
127
|
|
7.1
|
|
Finance and
insurance
|
$
|
2,741
|
$
|
2,755
|
$
|
(14)
|
|
(0.5)
|
$
|
2,757
|
$
|
2,716
|
$
|
41
|
|
1.5
|
|
Total variable
operations(1)
|
$
|
5,540
|
$
|
6,350
|
$
|
(810)
|
|
(12.8)
|
$
|
5,905
|
$
|
6,301
|
$
|
(396)
|
|
(6.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Percentages
|
|
Three Months
Ended September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
( %)
|
|
2022
( %)
|
|
2023
( %)
|
|
2022
( %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue mix
percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
|
|
46.2
|
|
43.0
|
|
46.6
|
|
42.4
|
|
|
|
|
|
|
|
|
|
Used vehicle
|
|
31.5
|
|
36.0
|
|
31.2
|
|
36.9
|
|
|
|
|
|
|
|
|
|
Parts and
service
|
|
16.8
|
|
15.5
|
|
16.8
|
|
15.1
|
|
|
|
|
|
|
|
|
|
Finance and insurance,
net
|
|
5.4
|
|
5.4
|
|
5.3
|
|
5.4
|
|
|
|
|
|
|
|
|
|
Other
|
|
0.1
|
|
0.1
|
|
0.1
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
100.0
|
|
100.0
|
|
100.0
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit mix
percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
|
|
19.4
|
|
25.1
|
|
21.1
|
|
25.8
|
|
|
|
|
|
|
|
|
|
Used vehicle
|
|
9.9
|
|
10.8
|
|
10.6
|
|
10.9
|
|
|
|
|
|
|
|
|
|
Parts and
service
|
|
42.2
|
|
36.5
|
|
40.8
|
|
35.7
|
|
|
|
|
|
|
|
|
|
Finance and
insurance
|
|
28.5
|
|
27.5
|
|
27.4
|
|
27.4
|
|
|
|
|
|
|
|
|
|
Other
|
|
-
|
|
0.1
|
|
0.1
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
100.0
|
|
100.0
|
|
100.0
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating items as a
percentage of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
|
|
7.9
|
|
11.5
|
|
8.8
|
|
11.9
|
|
|
|
|
|
|
|
|
|
|
Used vehicle -
retail
|
|
6.3
|
|
6.3
|
|
6.8
|
|
5.9
|
|
|
|
|
|
|
|
|
|
|
Parts and
service
|
|
47.2
|
|
46.4
|
|
47.1
|
|
46.3
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
18.8
|
|
19.7
|
|
19.4
|
|
19.6
|
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative expenses
|
|
11.9
|
|
11.4
|
|
12.1
|
|
11.1
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
6.1
|
|
7.8
|
|
6.5
|
|
7.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating items as a
percentage of total gross profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative expenses
|
|
63.3
|
|
58.1
|
|
62.4
|
|
56.7
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
32.4
|
|
39.8
|
|
33.2
|
|
40.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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,
|
|
|
|
2023
|
|
2022
|
|
$ Variance
|
|
% Variance
|
|
2023
|
|
2022
|
|
$ Variance
|
|
% Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
$
|
1,983.9
|
$
|
2,032.8
|
$
|
(48.9)
|
|
(2.4)
|
$
|
5,770.5
|
$
|
6,108.1
|
$
|
(337.6)
|
|
(5.5)
|
|
Import
|
|
2,077.2
|
|
1,875.2
|
|
202.0
|
|
10.8
|
|
5,864.2
|
|
5,799.0
|
|
65.2
|
|
1.1
|
|
Premium
luxury
|
|
2,516.1
|
|
2,506.4
|
|
9.7
|
|
0.4
|
|
7,621.5
|
|
7,601.7
|
|
19.8
|
|
0.3
|
|
Total
|
|
6,577.2
|
|
6,414.4
|
|
162.8
|
|
2.5
|
|
19,256.2
|
|
19,508.8
|
|
(252.6)
|
|
(1.3)
|
|
Corporate and
other
|
|
315.5
|
|
251.6
|
|
63.9
|
|
25.4
|
|
925.3
|
|
779.2
|
|
146.1
|
|
18.8
|
|
Total consolidated revenue
|
$
|
6,892.7
|
$
|
6,666.0
|
$
|
226.7
|
|
3.4
|
$
|
20,181.5
|
$
|
20,288.0
|
$
|
(106.5)
|
|
(0.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
income*:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
$
|
107.2
|
$
|
142.7
|
$
|
(35.5)
|
|
(24.9)
|
$
|
341.5
|
$
|
445.2
|
$
|
(103.7)
|
|
(23.3)
|
|
Import
|
|
164.7
|
|
180.3
|
|
(15.6)
|
|
(8.7)
|
|
498.1
|
|
559.0
|
|
(60.9)
|
|
(10.9)
|
|
Premium
luxury
|
|
192.9
|
|
235.2
|
|
(42.3)
|
|
(18.0)
|
|
641.2
|
|
722.2
|
|
(81.0)
|
|
(11.2)
|
|
Total
|
|
464.8
|
|
558.2
|
|
(93.4)
|
|
(16.7)
|
|
1,480.8
|
|
1,726.4
|
|
(245.6)
|
|
(14.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and
other
|
|
(83.6)
|
|
(46.4)
|
|
(37.2)
|
|
|
|
(277.0)
|
|
(148.5)
|
|
(128.5)
|
|
|
Add: Floorplan
interest expense
|
|
38.3
|
|
10.7
|
|
27.6
|
|
|
|
98.2
|
|
21.7
|
|
76.5
|
|
|
Operating
income
|
$
|
419.5
|
$
|
522.5
|
$
|
(103.0)
|
|
(19.7)
|
$
|
1,302.0
|
$
|
1,599.6
|
$
|
(297.6)
|
|
(18.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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
|
|
17,766
|
|
16,859
|
|
907
|
|
5.4
|
|
51,110
|
|
49,984
|
|
1,126
|
|
2.3
|
|
Import
|
|
28,232
|
|
22,309
|
|
5,923
|
|
26.5
|
|
78,502
|
|
70,457
|
|
8,045
|
|
11.4
|
|
Premium
luxury
|
|
16,291
|
|
16,397
|
|
(106)
|
|
(0.6)
|
|
50,186
|
|
49,456
|
|
730
|
|
1.5
|
|
|
|
62,289
|
|
55,565
|
|
6,724
|
|
12.1
|
|
179,798
|
|
169,897
|
|
9,901
|
|
5.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail used vehicle
unit sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
22,406
|
|
24,827
|
|
(2,421)
|
|
(9.8)
|
|
64,914
|
|
76,603
|
|
(11,689)
|
|
(15.3)
|
|
Import
|
|
24,548
|
|
25,416
|
|
(868)
|
|
(3.4)
|
|
69,241
|
|
77,731
|
|
(8,490)
|
|
(10.9)
|
|
Premium
luxury
|
|
19,710
|
|
20,677
|
|
(967)
|
|
(4.7)
|
|
57,409
|
|
64,007
|
|
(6,598)
|
|
(10.3)
|
|
|
|
66,664
|
|
70,920
|
|
(4,256)
|
|
(6.0)
|
|
191,564
|
|
218,341
|
|
(26,777)
|
|
(12.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brand Mix - Retail New Vehicle Units
Sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
2023
( %)
|
|
2022
( %)
|
|
2023
( %)
|
|
2022
( %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ford,
Lincoln
|
|
10.5
|
|
10.5
|
|
10.9
|
|
10.7
|
|
|
|
|
|
|
|
|
|
Chevrolet, Buick,
Cadillac, GMC
|
|
10.8
|
|
10.8
|
|
10.4
|
|
9.8
|
|
|
|
|
|
|
|
|
|
Chrysler, Dodge, Jeep,
Ram
|
|
7.2
|
|
9.0
|
|
7.1
|
|
8.9
|
|
|
|
|
|
|
|
|
|
Domestic
total
|
|
28.5
|
|
30.3
|
|
28.4
|
|
29.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Import:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Toyota
|
|
19.9
|
|
19.7
|
|
18.7
|
|
20.4
|
|
|
|
|
|
|
|
|
|
Honda
|
|
12.4
|
|
9.1
|
|
12.8
|
|
9.7
|
|
|
|
|
|
|
|
|
|
Nissan
|
|
2.2
|
|
1.7
|
|
2.2
|
|
2.1
|
|
|
|
|
|
|
|
|
|
Hyundai
|
|
3.4
|
|
3.4
|
|
3.4
|
|
3.2
|
|
|
|
|
|
|
|
|
|
Subaru
|
|
4.1
|
|
3.0
|
|
3.5
|
|
3.1
|
|
|
|
|
|
|
|
|
|
Other Import
|
|
3.3
|
|
3.3
|
|
3.1
|
|
3.0
|
|
|
|
|
|
|
|
|
|
Import total
|
|
45.3
|
|
40.2
|
|
43.7
|
|
41.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premium
Luxury:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mercedes-Benz
|
|
8.5
|
|
10.9
|
|
9.3
|
|
10.5
|
|
|
|
|
|
|
|
|
|
BMW
|
|
8.4
|
|
9.4
|
|
9.1
|
|
9.5
|
|
|
|
|
|
|
|
|
|
Lexus
|
|
2.8
|
|
2.8
|
|
3.0
|
|
2.8
|
|
|
|
|
|
|
|
|
|
Audi
|
|
2.9
|
|
2.7
|
|
2.7
|
|
2.6
|
|
|
|
|
|
|
|
|
|
Jaguar Land
Rover
|
|
1.7
|
|
1.7
|
|
1.8
|
|
1.7
|
|
|
|
|
|
|
|
|
|
Other Premium
Luxury
|
|
1.9
|
|
2.0
|
|
2.0
|
|
2.0
|
|
|
|
|
|
|
|
|
|
Premium Luxury
total
|
|
26.2
|
|
29.5
|
|
27.9
|
|
29.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
87.0
|
$
|
75.9
|
$
|
286.0
|
$
|
236.2
|
|
|
|
|
|
Cash paid for
acquisitions, net of cash acquired
|
$
|
2.2
|
$
|
-
|
$
|
271.1
|
$
|
-
|
|
|
|
|
|
Deposits for
investment
|
$
|
-
|
$
|
81.6
|
$
|
-
|
$
|
81.6
|
|
|
|
|
|
Proceeds from exercises
of stock options
|
$
|
0.4
|
$
|
0.8
|
$
|
1.9
|
$
|
3.4
|
|
|
|
|
|
Stock
repurchases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate purchase
price (1)
|
$
|
200.0
|
$
|
428.2
|
$
|
712.4
|
$
|
1,213.1
|
|
|
|
|
|
|
Shares repurchased (in
millions)
|
|
1.3
|
|
3.8
|
|
5.3
|
|
10.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Floorplan Assistance and
Expense
|
|
Three Months
Ended September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2023
|
|
2022
|
|
Variance
|
|
2023
|
|
2022
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Floorplan assistance
earned (included in cost of sales)
|
$
|
31.5
|
$
|
26.3
|
$
|
5.2
|
$
|
92.1
|
$
|
81.1
|
$
|
11.0
|
|
New vehicle floorplan
interest expense
|
|
(35.1)
|
|
(9.4)
|
|
(25.7)
|
|
(89.1)
|
|
(18.2)
|
|
(70.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net new vehicle
inventory carrying benefit (cost)
|
$
|
(3.6)
|
$
|
16.9
|
$
|
(20.5)
|
$
|
3.0
|
$
|
62.9
|
$
|
(59.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet and Other
Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2023
|
|
December 31,
2022
|
|
September 30,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
64.0
|
$
|
72.6
|
$
|
442.9
|
|
|
|
|
|
|
|
Inventory
|
$
|
2,645.6
|
$
|
2,048.3
|
$
|
1,851.3
|
|
|
|
|
|
|
|
Floorplan notes
payable
|
$
|
2,814.8
|
$
|
2,109.3
|
$
|
1,624.8
|
|
|
|
|
|
|
|
Non-recourse
debt
|
$
|
246.1
|
$
|
323.6
|
$
|
-
|
|
|
|
|
|
|
|
Non-vehicle
debt
|
$
|
3,942.4
|
$
|
3,649.5
|
$
|
3,544.6
|
|
|
|
|
|
|
|
Equity
|
$
|
2,142.0
|
$
|
2,047.8
|
$
|
2,255.2
|
|
|
|
|
|
|
|
New days supply
(industry standard of selling days)
|
|
31
days
|
|
19
days
|
|
15
days
|
|
|
|
|
|
|
|
Used days supply
(trailing calendar month days)
|
|
33
days
|
|
31
days
|
|
34
days
|
|
|
|
|
|
|
|
|
Key Credit Agreement
Covenant Compliance Calculations (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Leverage
ratio
|
|
|
2.02x
|
|
Covenant
|
less than or equal
to
|
|
3.75x
|
|
|
|
|
|
|
|
|
Interest coverage
ratio
|
|
7.15x
|
|
Covenant
|
greater than or equal
to
|
3.00x
|
|
|
|
|
(1)
|
Excludes excise tax
accrual under Inflation Reduction Act.
|
|
(2)
|
Calculated in
accordance with our credit agreement as filed with our Quarterly
Report on Form 10-Q for the quarter ended June 30,
2023.
|
AUTONATION,
INC.
|
UNAUDITED
SUPPLEMENTARY DATA, Continued
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable Basis
Reconciliations(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
Operating
Income
|
|
Income from
Continuing
Operations Before
Income Taxes
|
|
Income Tax
Provision(2)
|
|
Effective Tax
Rate
|
|
Net
Income
|
|
Diluted Earnings Per
Share(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From continuing
operations, as reported
|
$
|
419.5
|
$
|
522.5
|
$
|
327.4
|
$
|
473.5
|
$
|
83.7
|
$
|
120.8
|
|
25.6 %
|
|
25.5 %
|
$
|
243.7
|
$
|
352.7
|
|
|
|
|
Discontinued
operations, net of income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
(0.1)
|
|
|
|
|
As reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
243.7
|
|
352.6
|
$
|
5.54
|
$
|
6.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in
compensation expense related to market valuation changes in
deferred compensation plans(4)
|
|
(3.7)
|
|
(4.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains on
business/property dispositions
|
|
-
|
|
(16.1)
|
|
-
|
|
(16.1)
|
|
-
|
|
(4.0)
|
|
|
|
|
|
-
|
|
(12.1)
|
$
|
-
|
$
|
(0.22)
|
|
Legal
settlement
|
|
-
|
|
(6.3)
|
|
-
|
|
(6.3)
|
|
-
|
|
(1.4)
|
|
|
|
|
|
-
|
|
(4.9)
|
$
|
-
|
$
|
(0.09)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
$
|
415.8
|
$
|
495.3
|
$
|
327.4
|
$
|
451.1
|
$
|
83.7
|
$
|
115.4
|
|
25.6 %
|
|
25.6 %
|
$
|
243.7
|
$
|
335.6
|
$
|
5.54
|
$
|
6.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A
|
|
SG&A as a
Percentage of
Gross Profit (%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$
|
819.3
|
$
|
763.2
|
|
63.3
|
|
58.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding increase
(decrease) in compensation expense related to market valuation
changes in deferred compensation plans
|
|
(3.7)
|
|
(4.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
$
|
823.0
|
$
|
768.0
|
|
63.6
|
|
58.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
Operating
Income
|
|
Income from
Continuing
Operations Before
Income Taxes
|
|
Income Tax
Provision(2)
|
|
Effective Tax
Rate
|
|
Net
Income
|
|
Diluted Earnings Per
Share(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From continuing
operations, as reported
|
$
|
1,302.0
|
$
|
1,599.6
|
$
|
1,072.5
|
$
|
1,455.8
|
$
|
268.5
|
$
|
364.5
|
|
25.0 %
|
|
25.0 %
|
$
|
804.0
|
$
|
1,091.3
|
|
|
|
|
Discontinued
operations, net of income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.9
|
|
(0.3)
|
|
|
|
|
As reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
804.9
|
|
1,091.0
|
$
|
17.65
|
$
|
18.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in
compensation expense related to market valuation changes in
deferred compensation plans(4)
|
|
6.3
|
|
(25.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses from hail storms
and other natural catastrophes
|
|
16.5
|
|
-
|
|
16.5
|
|
-
|
|
4.1
|
|
-
|
|
|
|
|
|
12.4
|
|
-
|
$
|
0.27
|
$
|
-
|
|
Net gains on
business/property dispositions
|
|
-
|
|
(16.1)
|
|
-
|
|
(16.1)
|
|
-
|
|
(4.0)
|
|
|
|
|
|
-
|
|
(12.1)
|
$
|
-
|
$
|
(0.21)
|
|
Legal
settlement
|
|
-
|
|
(6.3)
|
|
-
|
|
(6.3)
|
|
-
|
|
(1.4)
|
|
|
|
|
|
-
|
|
(4.9)
|
$
|
-
|
$
|
(0.08)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
$
|
1,324.8
|
$
|
1,552.1
|
$
|
1,089.0
|
$
|
1,433.4
|
$
|
272.6
|
$
|
359.1
|
|
25.0 %
|
|
25.1 %
|
$
|
817.3
|
$
|
1,074.0
|
$
|
17.92
|
$
|
18.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A
|
|
SG&A as a
Percentage of
Gross Profit (%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$
|
2,444.9
|
$
|
2,259.4
|
|
62.4
|
|
56.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding increase
(decrease) in compensation expense related to market valuation
changes in deferred compensation plans
|
|
6.3
|
|
(25.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding losses from
hail storms and other natural catastrophes
|
|
16.5
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
$
|
2,422.1
|
$
|
2,284.5
|
|
61.8
|
|
57.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Please refer to the
"Non-GAAP Financial Measures" section of the Press
Release.
|
|
|
(2)
|
Tax expense is
determined based on the amount of additional taxes or tax benefits
associated with each individual item.
|
|
|
(3)
|
Diluted earnings per
share amounts are calculated discretely and therefore may not add
up to the total due to rounding.
|
|
|
(4)
|
Increases and decreases
in deferred compensation obligations, which are recorded in
SG&A, are substantially offset by corresponding gains and
losses, respectively, related to changes in the cash surrender
value of corporate-owned life insurance ("COLI") for deferred
compensation plan participants as a result of changes in market
performance of the underlying investments. Gains and losses related
to the COLI are recorded in non-operating Other Income (Loss),
Net.
|
AUTONATION,
INC.
|
UNAUDITED SAME
STORE DATA
|
($ in millions,
except per vehicle data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Highlights
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2023
|
|
2022
|
|
$ Variance
|
|
% Variance
|
|
2023
|
|
2022
|
|
$ Variance
|
|
% Variance
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
|
$
|
3,117.8
|
$
|
2,856.9
|
$
|
260.9
|
|
9.1
|
$
|
9,273.4
|
$
|
8,572.1
|
$
|
701.3
|
|
8.2
|
|
|
Retail used
vehicle
|
|
1,955.5
|
|
2,248.4
|
|
(292.9)
|
|
(13.0)
|
|
5,685.7
|
|
6,976.6
|
|
(1,290.9)
|
|
(18.5)
|
|
|
Wholesale
|
|
142.6
|
|
147.7
|
|
(5.1)
|
|
(3.5)
|
|
424.8
|
|
484.3
|
|
(59.5)
|
|
(12.3)
|
|
Used vehicle
|
|
2,098.1
|
|
2,396.1
|
|
(298.0)
|
|
(12.4)
|
|
6,110.5
|
|
7,460.9
|
|
(1,350.4)
|
|
(18.1)
|
|
Finance and insurance,
net
|
|
359.7
|
|
360.1
|
|
(0.4)
|
|
(0.1)
|
|
1,047.8
|
|
1,088.5
|
|
(40.7)
|
|
(3.7)
|
|
|
Total variable
operations
|
|
5,575.6
|
|
5,613.1
|
|
(37.5)
|
|
(0.7)
|
|
16,431.7
|
|
17,121.5
|
|
(689.8)
|
|
(4.0)
|
|
Parts and
service
|
|
1,127.3
|
|
1,027.6
|
|
99.7
|
|
9.7
|
|
3,321.6
|
|
3,052.7
|
|
268.9
|
|
8.8
|
|
Other
|
|
5.9
|
|
7.6
|
|
(1.7)
|
|
|
|
24.1
|
|
22.1
|
|
2.0
|
|
|
Total
revenue
|
$
|
6,708.8
|
$
|
6,648.3
|
$
|
60.5
|
|
0.9
|
$
|
19,777.4
|
$
|
20,196.3
|
$
|
(418.9)
|
|
(2.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
|
$
|
245.7
|
$
|
328.9
|
$
|
(83.2)
|
|
(25.3)
|
$
|
815.2
|
$
|
1,024.4
|
$
|
(209.2)
|
|
(20.4)
|
|
|
Retail used
vehicle
|
|
121.8
|
|
140.9
|
|
(19.1)
|
|
(13.6)
|
|
386.5
|
|
412.5
|
|
(26.0)
|
|
(6.3)
|
|
|
Wholesale
|
|
1.6
|
|
1.2
|
|
0.4
|
|
|
|
18.8
|
|
21.9
|
|
(3.1)
|
|
|
|
Used vehicle
|
|
123.4
|
|
142.1
|
|
(18.7)
|
|
(13.2)
|
|
405.3
|
|
434.4
|
|
(29.1)
|
|
(6.7)
|
|
Finance and
insurance
|
|
359.7
|
|
360.1
|
|
(0.4)
|
|
(0.1)
|
|
1,047.8
|
|
1,088.5
|
|
(40.7)
|
|
(3.7)
|
|
|
Total variable
operations
|
|
728.8
|
|
831.1
|
|
(102.3)
|
|
(12.3)
|
|
2,268.3
|
|
2,547.3
|
|
(279.0)
|
|
(11.0)
|
|
Parts and
service
|
|
534.1
|
|
475.2
|
|
58.9
|
|
12.4
|
|
1,568.7
|
|
1,408.9
|
|
159.8
|
|
11.3
|
|
Other
|
|
0.6
|
|
1.7
|
|
(1.1)
|
|
|
|
3.5
|
|
6.4
|
|
(2.9)
|
|
|
Total gross
profit
|
$
|
1,263.5
|
$
|
1,308.0
|
$
|
(44.5)
|
|
(3.4)
|
$
|
3,840.5
|
$
|
3,962.6
|
$
|
(122.1)
|
|
(3.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail vehicle unit
sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
|
|
60,690
|
|
55,464
|
|
5,226
|
|
9.4
|
|
177,094
|
|
169,391
|
|
7,703
|
|
4.5
|
|
Used
|
|
69,670
|
|
75,235
|
|
(5,565)
|
|
(7.4)
|
|
201,875
|
|
231,367
|
|
(29,492)
|
|
(12.7)
|
|
|
|
|
130,360
|
|
130,699
|
|
(339)
|
|
(0.3)
|
|
378,969
|
|
400,758
|
|
(21,789)
|
|
(5.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per vehicle
retailed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
|
$
|
51,373
|
$
|
51,509
|
$
|
(136)
|
|
(0.3)
|
$
|
52,364
|
$
|
50,605
|
$
|
1,759
|
|
3.5
|
|
Used
|
$
|
28,068
|
$
|
29,885
|
$
|
(1,817)
|
|
(6.1)
|
$
|
28,164
|
$
|
30,154
|
$
|
(1,990)
|
|
(6.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit per
vehicle retailed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
|
$
|
4,048
|
$
|
5,930
|
$
|
(1,882)
|
|
(31.7)
|
$
|
4,603
|
$
|
6,048
|
$
|
(1,445)
|
|
(23.9)
|
|
Used
|
$
|
1,748
|
$
|
1,873
|
$
|
(125)
|
|
(6.7)
|
$
|
1,915
|
$
|
1,783
|
$
|
132
|
|
7.4
|
|
Finance and
insurance
|
$
|
2,759
|
$
|
2,755
|
$
|
4
|
|
0.1
|
$
|
2,765
|
$
|
2,716
|
$
|
49
|
|
1.8
|
|
Total variable
operations(1)
|
$
|
5,578
|
$
|
6,350
|
$
|
(772)
|
|
(12.2)
|
$
|
5,936
|
$
|
6,302
|
$
|
(366)
|
|
(5.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Percentages
|
|
Three Months
Ended September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
( %)
|
|
2022
( %)
|
|
2023
( %)
|
|
2022
( %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue mix
percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
|
|
46.5
|
|
43.0
|
|
46.9
|
|
42.4
|
|
|
|
|
|
|
|
|
|
Used vehicle
|
|
31.3
|
|
36.0
|
|
30.9
|
|
36.9
|
|
|
|
|
|
|
|
|
|
Parts and
service
|
|
16.8
|
|
15.5
|
|
16.8
|
|
15.1
|
|
|
|
|
|
|
|
|
|
Finance and insurance,
net
|
|
5.4
|
|
5.4
|
|
5.3
|
|
5.4
|
|
|
|
|
|
|
|
|
|
Other
|
|
-
|
|
0.1
|
|
0.1
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
100.0
|
|
100.0
|
|
100.0
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit mix
percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
|
|
19.4
|
|
25.1
|
|
21.2
|
|
25.9
|
|
|
|
|
|
|
|
|
|
Used vehicle
|
|
9.8
|
|
10.9
|
|
10.6
|
|
11.0
|
|
|
|
|
|
|
|
|
|
Parts and
service
|
|
42.3
|
|
36.3
|
|
40.8
|
|
35.6
|
|
|
|
|
|
|
|
|
|
Finance and
insurance
|
|
28.5
|
|
27.5
|
|
27.3
|
|
27.5
|
|
|
|
|
|
|
|
|
|
Other
|
|
-
|
|
0.2
|
|
0.1
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
100.0
|
|
100.0
|
|
100.0
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating items as a
percentage of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
|
|
7.9
|
|
11.5
|
|
8.8
|
|
12.0
|
|
|
|
|
|
|
|
|
|
|
Used vehicle -
retail
|
|
6.2
|
|
6.3
|
|
6.8
|
|
5.9
|
|
|
|
|
|
|
|
|
|
|
Parts and
service
|
|
47.4
|
|
46.2
|
|
47.2
|
|
46.2
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
18.8
|
|
19.7
|
|
19.4
|
|
19.6
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/autonation-reports-third-quarter-2023-results-301969586.html
SOURCE AutoNation, Inc.