FORT LAUDERDALE, Fla.,
Oct. 21, 2021 /PRNewswire/
-- AutoNation, Inc. (NYSE: AN), America's largest and
most recognized automotive retailer, today reported its sixth
consecutive all-time record quarter. During the quarter, consumer
demand continued to outpace supply, driven by consumer desire for
personal transportation and ongoing manufacturing supply chain
disruptions. New vehicle inventory remains at historically low
levels, which combined with strong execution, has supported record
profitability. With personal transportation remaining a top
priority, many Customers are shifting from new to pre-owned
vehicles. AutoNation continues to outperform the industry due to
strong sourcing capabilities, with third quarter 2021 same store
used vehicle revenue up 53% year-over-year. Ninety percent of all
pre-owned vehicles retailed by AutoNation in the third quarter were
self-sourced.
Mike Jackson, AutoNation's Chief
Executive Officer, stated, "Demand continues to outpace supply for
new vehicles. New vehicle sales are constrained by
reduced production volume with low inventory levels. We expect
this pent up demand to support sales for the foreseeable
future."
Third quarter 2021 net income from continuing operations was
$362 million, or $5.12 per share. Third quarter 2020 net
income from continuing operations was $183
million, or $2.05 per share,
which included charges of $28 million
after-tax, or $0.31 per share,
related to the closing of the AutoNation Collision Parts business
and a non-cash unrealized loss related to our investment in Vroom
of $2 million after-tax, or
$0.02 per share. Reconciliations of
non-GAAP financial measures are included in the attached financial
tables.
Operational Summary
Third quarter 2021 Operational
Summary:
- Revenue – Same-store revenue was
$6.4 billion, an increase of 18%
compared to the year-ago period and an increase of 18% compared to
the third quarter of 2019.
-
- New Vehicle Revenue – Same-store new vehicle
revenue was flat compared to the prior year and decreased 3%
compared to the third quarter of 2019.
- Used Vehicle Revenue– Same-store used
vehicle revenue increased 53% compared to the prior year and
increased 67% compared to the third quarter of 2019
- Gross Profit - Same-store gross profit
totaled $1.3 billion, an increase of
29% compared to the year-ago period and an increase of 45% compared
to the third quarter of 2019.
-
- New Vehicle Gross Profit - Same-store new
vehicle gross profit per vehicle retailed was a record $5,484,
up $2,949 or 116% compared to the
year-ago period and up 238% compared to the third quarter of
2019.
- Used Vehicle Gross Profit - Same-store used
vehicle gross profit per vehicle retailed was $2,104, up $108 or
5% compared to the year-ago period and up 51% compared to the third
quarter of 2019.
- Customer Financial Services Gross Profit -
Same-store Customer Financial Services gross profit per vehicle
retailed was a record $2,573, up
$417 or 19% compared to the year-ago
period and up 32% compared to the third quarter of 2019.
- Customer Care Gross Profit - Same-store Customer
Care gross profit was $424 million,
an increase of 8% compared to the year-ago period and an increase
of 6% compared to the third quarter of 2019.
- SG&A as a Percentage of Gross Profit
–SG&A as a percentage of gross profit was 56.9%, an
improvement of 750 basis points compared to adjusted SG&A as a
percentage of gross profit of 64.4% in the prior year and a 1,550
basis improvement compared to the third quarter of 2019.
Selected GAAP
Financial Data
|
($ in millions, except
per share data)
|
|
Three Months Ended Sep
30,
|
|
2021
|
2020
|
2019
|
YoY
|
2021
vs.
2019
|
Revenue
|
$
6,379.5
|
$
5,404.9
|
$
5,461.2
|
18%
|
17%
|
Gross Profit
|
$
1,271.9
|
$
971.5
|
$
887.4
|
31%
|
43%
|
Operating
Income
|
$
503.3
|
$
271.7
|
$
193.5
|
85%
|
160%
|
Net Income from
Continuing Operations
|
$
361.7
|
$
182.6
|
$
100.0
|
98%
|
262%
|
Diluted EPS from
Continuing Operations
|
$
5.12
|
$
2.05
|
$
1.11
|
150%
|
361%
|
|
|
|
|
|
|
Same-store
Revenue
|
$
6,365.7
|
$
5,380.3
|
$
5,377.2
|
18%
|
18%
|
Same-store Gross
Profit
|
$
1,269.7
|
$
986.5
|
$
875.7
|
29%
|
45%
|
|
|
|
|
|
|
Same-store New Vehicle
Retail Unit Sales
|
58,276
|
65,838
|
73,049
|
-11%
|
-20%
|
Same- store Used
Vehicle Retail Unit Sales
|
77,073
|
64,393
|
62,513
|
20%
|
23%
|
|
|
|
|
|
|
Selected Non-GAAP
Financial Data
|
($ in millions, except
per share data)
|
|
Three Months Ended Sep
30,
|
|
2021
|
2020
|
2019
|
YoY
|
2021
vs.
2019
|
Adjusted Operating
Income
|
$
503.3
|
$
308.2
|
$
199.3
|
63%
|
153%
|
Adjusted Net Income
from Continuing Operations
|
$
361.7
|
$
211.8
|
$
106.3
|
71%
|
240%
|
Adjusted Diluted EPS
from Continuing Operations
|
$
5.12
|
$
2.38
|
$
1.18
|
115%
|
334%
|
Capital Allocation
The Company's seventh and eighth
AutoNation USA stores opened in
Denver as scheduled in September
and October of 2021. AutoNation remains on track to open two
additional AutoNation USA stores
in the fourth quarter of 2021, including a store in Phoenix and entering a new market in
Charlotte, North Carolina. The
Company will open 12 additional new stores in 2022. These stores
will continue to leverage the AutoNation brand, scale, and proven
Customer-centric processes to capture a larger share of the used
vehicle market.
AutoNation today announced it has signed an agreement to acquire
Priority 1 Automotive Group, representing
approximately $420 million in annual revenue. This
transaction is subject to customary terms and conditions, including
manufacturer approval, and is expected to close in the fourth
quarter of 2021. Together with the previously announced acquisition
of Peacock Automotive Group, during 2021, AutoNation has
announced acquisitions representing in the aggregate $800 million in annual revenue.
During the third quarter of 2021, AutoNation repurchased 7.9
million shares of common stock, or almost 11% of the shares
outstanding at the beginning of the third quarter for an aggregate
purchase price of $879 million. For
the last twelve months through September 30,
2021, AutoNation repurchased 23.9 million shares of common
stock, or 27% of the shares outstanding, for an aggregate purchase
price of $2.2 billion. AutoNation
today announced that the Board of Directors authorized the
repurchase of up to an additional $1
billion of AutoNation common stock. With the increased
authorization, AutoNation has approximately $1.3 billion remaining Board authorization for
share repurchase. As of October 19,
2021, AutoNation had approximately 66 million shares
outstanding.
Liquidity and Leverage
As of September 30, 2021, AutoNation had $1.8 billion of liquidity, including $72 million in cash and approximately
$1.8 billion of availability under
our revolving credit facility. The Company's covenant leverage
ratio was 1.4x at quarter-end. AutoNation had approximately
$2.7 billion of non-vehicle debt
outstanding as of September 30,
2021.
Segment Results
Segment results(1) for the
third quarter 2021 were as follows:
Third Quarter 2021 Segment Results
- Domestic - Domestic segment income(2)
was $149 million compared to year-ago
segment income of $112 million, an
increase of 33%.
- Import - Import segment income(2) was
$201 million compared to year-ago
segment income of $124 million, an
increase of 63%.
- Premium Luxury - Premium Luxury segment
income(2) was $206 million
compared to year-ago segment income of $144
million, an increase of 43%.
For the nine-month period ended September 30, 2021,
AutoNation reported net income from continuing operations of
$986 million, or $12.63 per share, compared to $230 million, or $2.59 per share, in the prior year.
Adjusted net income from continuing operations for the
nine-month period ended September 30,
2021, was $980 million, or
$12.55 per share, compared to
$418 million, or $4.70 per share in the prior year.
Reconciliations of non-GAAP financial measures are included in the
attached financial tables.
Selected GAAP
Financial Data
|
($ in millions, except
per share data)
|
|
Nine Months Ended Sep
30,
|
|
2021
|
2020
|
2019
|
YoY
|
2021
vs.
2019
|
Revenue
|
$
19,261.7
|
$
14,604.9
|
$
15,786.8
|
32%
|
22%
|
Gross Profit
|
$
3,631.0
|
$
2,579.7
|
$
2,627.4
|
41%
|
38%
|
Operating
Income
|
$
1,370.4
|
$
253.8
|
$
587.8
|
440%
|
133%
|
Net Income from
Continuing Operations
|
$
986.1
|
$
230.3
|
$
293.1
|
328%
|
236%
|
Diluted EPS from
Continuing Operations
|
$
12.63
|
$
2.59
|
$
3.24
|
388%
|
290%
|
|
|
|
|
|
|
Selected Non-GAAP
Financial Data
|
($ in millions, except
per share data)
|
|
Nine Months Ended Sep
30,
|
|
2021
|
2020
|
2019
|
YoY
|
2021
vs.
2019
|
Adjusted Operating
Income
|
$
1,370.4
|
$
680.0
|
$
594.9
|
102%
|
130%
|
Adjusted Net Income
from Continuing Operations
|
$
980.4
|
$
418.1
|
$
300.4
|
134%
|
226%
|
Adjusted Diluted EPS
from Continuing Operations
|
$
12.55
|
$
4.70
|
$
3.32
|
167%
|
278%
|
The third quarter conference call may be accessed by telephone
844-200-6205 (Conference ID:577526) at 10:00
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 under
"Events & Presentations" following the call. A playback of the
conference call will be available after 1:00
p.m. Eastern Time on October 21,
2021, through November 11,
2021, by calling 866-813-9403 (Conference ID: 527886).
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 General Motors, Ford, and Stellantis (formerly FCA
US); the Import segment is comprised of stores that sell vehicles
manufactured primarily by Toyota, Honda, Subaru, Nissan, and
Hyundai; 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 our reportable segments and is
defined as operating income less floorplan interest
expense.
|
About AutoNation, Inc. AutoNation, America's largest
and most admired automotive retailer, is transforming the
automotive industry through its bold leadership, innovation, and
comprehensive brand extensions. As of September 30, 2021, AutoNation owned and operated
over 300 locations from coast to coast. AutoNation has sold over 13
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. Since 2013, AutoNation has raised over
$28 million to drive out cancer,
create awareness, and support critical research through its DRIVE
PINK initiative, which was officially branded in 2015.
Please visit www.autonation.com, investors.autonation.com,
www.twitter.com/CEOMikeJackson, 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.
NON-GAAP FINANCIAL MEASURES
This news release and the attached financial tables contain certain
non-GAAP financial measures as defined under SEC rules, 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 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. Non-GAAP financial measures
should not be considered a substitute for, or superior to,
financial measures calculated and presented in accordance with
GAAP.
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, or investments
(including the planned expansion of our AutoNation USA pre-owned vehicle stores); pending
acquisitions; and our investments in digital and online
capabilities and other brand extension strategies; as well as
statements regarding our expectations for the future performance of
our business (including with respect to new and pre-owned vehicle
sales targets), 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: economic conditions, including
changes in consumer demand, unemployment rates, interest rates,
fuel prices, and tariffs; our ability to implement successfully our
strategic initiatives, partnerships, and investments, including the
planned expansion of our AutoNation USA stores; our ability to identify, acquire,
and build out suitable locations in a timely manner; our ability to
acquire and integrate successfully new franchises; restrictions
imposed by vehicle manufacturers and our ability to obtain
manufacturer approval for acquisitions; our ability to develop
successfully our digital and online capabilities and other brand
extension strategies; supply chain disruptions and inventory
availability; our ability to maintain and enhance our retail brands
and reputation and to attract consumers to our own digital
channels; our ability to attain planned sales volumes within our
expected time frames; new and used vehicle margins; our ability to
successfully implement and maintain expense controls; the success
and financial viability and the incentive and marketing programs of
vehicle manufacturers and distributors with which we hold
franchises; the response by federal, state, and local governments
and other third parties to, and the economic impacts of, the
COVID-19 pandemic; 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 OPERATIONS
|
(In millions, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
New vehicle
|
$
|
2,753.8
|
$
|
2,748.4
|
$
|
9,164.4
|
$
|
7,291.6
|
|
Used vehicle
|
|
2,323.2
|
|
1,516.9
|
|
6,295.2
|
|
4,090.1
|
|
Parts and
service
|
|
943.7
|
|
852.8
|
|
2,745.5
|
|
2,419.0
|
|
Finance and insurance,
net
|
|
348.9
|
|
281.2
|
|
1,030.9
|
|
763.4
|
|
Other
|
|
9.9
|
|
5.6
|
|
25.7
|
|
40.8
|
Total
revenue
|
|
6,379.5
|
|
5,404.9
|
|
19,261.7
|
|
14,604.9
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
|
New vehicle
|
|
2,434.2
|
|
2,581.2
|
|
8,334.3
|
|
6,908.4
|
|
Used vehicle
|
|
2,146.2
|
|
1,370.0
|
|
5,775.3
|
|
3,735.2
|
|
Parts and
service
|
|
518.9
|
|
477.6
|
|
1,499.2
|
|
1,343.6
|
|
Other
|
|
8.3
|
|
4.6
|
|
21.9
|
|
38.0
|
Total cost of
sales
|
|
5,107.6
|
|
4,433.4
|
|
15,630.7
|
|
12,025.2
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
1,271.9
|
|
971.5
|
|
3,631.0
|
|
2,579.7
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative expenses
|
|
723.7
|
|
641.4
|
|
2,120.5
|
|
1,790.0
|
Depreciation and
amortization
|
|
47.6
|
|
51.8
|
|
143.4
|
|
149.0
|
Goodwill
impairment
|
|
-
|
|
-
|
|
-
|
|
318.3
|
Franchise rights
impairment
|
|
-
|
|
-
|
|
-
|
|
57.5
|
Other (income) expense,
net
|
|
(2.7)
|
|
6.6
|
|
(3.3)
|
|
11.1
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
503.3
|
|
271.7
|
|
1,370.4
|
|
253.8
|
|
|
|
|
|
|
|
|
|
|
Non-operating income
(expense) items:
|
|
|
|
|
|
|
|
|
|
Floorplan interest
expense
|
|
(4.9)
|
|
(11.1)
|
|
(20.9)
|
|
(52.9)
|
|
Other interest
expense
|
|
(24.1)
|
|
(23.6)
|
|
(66.2)
|
|
(70.3)
|
|
Other income (loss),
net(1)
|
|
(0.8)
|
|
6.5
|
|
19.1
|
|
218.2
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations before income taxes
|
|
473.5
|
|
243.5
|
|
1,302.4
|
|
348.8
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision
|
|
111.8
|
|
60.9
|
|
316.3
|
|
118.5
|
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
|
361.7
|
|
182.6
|
|
986.1
|
|
230.3
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued
operations, net of income taxes
|
|
-
|
|
-
|
|
(0.2)
|
|
(0.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
361.7
|
$
|
182.6
|
$
|
985.9
|
$
|
230.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share(2):
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
5.12
|
$
|
2.05
|
$
|
12.63
|
$
|
2.59
|
|
Discontinued
operations
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
5.12
|
$
|
2.05
|
$
|
12.62
|
$
|
2.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding
|
|
70.7
|
|
88.9
|
|
78.1
|
|
89.0
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding, net of treasury stock, at period end
|
|
65.5
|
|
87.8
|
|
65.5
|
|
87.8
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Current year-to-date
and prior quarter-to-date and year-to-date periods include gains
(losses) on minority equity investments.
|
(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,
|
|
|
|
|
2021
|
|
2020
|
|
$ Variance
|
|
% Variance
|
|
2021
|
|
2020
|
|
$ Variance
|
|
% Variance
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
|
$
|
2,753.8
|
$
|
2,748.4
|
$
|
5.4
|
|
0.2
|
$
|
9,164.4
|
$
|
7,291.6
|
$
|
1,872.8
|
|
25.7
|
|
|
Retail used
vehicle
|
|
2,158.2
|
|
1,421.0
|
|
737.2
|
|
51.9
|
|
5,888.1
|
|
3,845.5
|
|
2,042.6
|
|
53.1
|
|
|
Wholesale
|
|
165.0
|
|
95.9
|
|
69.1
|
|
72.1
|
|
407.1
|
|
244.6
|
|
162.5
|
|
66.4
|
|
Used vehicle
|
|
2,323.2
|
|
1,516.9
|
|
806.3
|
|
53.2
|
|
6,295.2
|
|
4,090.1
|
|
2,205.1
|
|
53.9
|
|
Finance and insurance,
net
|
|
348.9
|
|
281.2
|
|
67.7
|
|
24.1
|
|
1,030.9
|
|
763.4
|
|
267.5
|
|
35.0
|
|
|
Total variable
operations
|
|
5,425.9
|
|
4,546.5
|
|
879.4
|
|
19.3
|
|
16,490.5
|
|
12,145.1
|
|
4,345.4
|
|
35.8
|
|
Parts and
service
|
|
943.7
|
|
852.8
|
|
90.9
|
|
10.7
|
|
2,745.5
|
|
2,419.0
|
|
326.5
|
|
13.5
|
|
Other
|
|
9.9
|
|
5.6
|
|
4.3
|
|
|
|
25.7
|
|
40.8
|
|
(15.1)
|
|
|
Total
revenue
|
$
|
6,379.5
|
$
|
5,404.9
|
$
|
974.6
|
|
18.0
|
$
|
19,261.7
|
$
|
14,604.9
|
$
|
4,656.8
|
|
31.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
|
$
|
319.6
|
$
|
167.2
|
$
|
152.4
|
|
91.1
|
$
|
830.1
|
$
|
383.2
|
$
|
446.9
|
|
116.6
|
|
|
Retail used
vehicle
|
|
163.1
|
|
128.8
|
|
34.3
|
|
26.6
|
|
468.7
|
|
318.1
|
|
150.6
|
|
47.3
|
|
|
Wholesale
|
|
13.9
|
|
18.1
|
|
(4.2)
|
|
|
|
51.2
|
|
36.8
|
|
14.4
|
|
|
|
Used vehicle
|
|
177.0
|
|
146.9
|
|
30.1
|
|
20.5
|
|
519.9
|
|
354.9
|
|
165.0
|
|
46.5
|
|
Finance and
insurance
|
|
348.9
|
|
281.2
|
|
67.7
|
|
24.1
|
|
1,030.9
|
|
763.4
|
|
267.5
|
|
35.0
|
|
|
Total variable
operations
|
|
845.5
|
|
595.3
|
|
250.2
|
|
42.0
|
|
2,380.9
|
|
1,501.5
|
|
879.4
|
|
58.6
|
|
Parts and
service
|
|
424.8
|
|
375.2
|
|
49.6
|
|
13.2
|
|
1,246.3
|
|
1,075.4
|
|
170.9
|
|
15.9
|
|
Other
|
|
1.6
|
|
1.0
|
|
0.6
|
|
|
|
3.8
|
|
2.8
|
|
1.0
|
|
|
Total gross
profit
|
|
1,271.9
|
|
971.5
|
|
300.4
|
|
30.9
|
|
3,631.0
|
|
2,579.7
|
|
1,051.3
|
|
40.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative expenses
|
|
723.7
|
|
641.4
|
|
(82.3)
|
|
(12.8)
|
|
2,120.5
|
|
1,790.0
|
|
(330.5)
|
|
(18.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
47.6
|
|
51.8
|
|
4.2
|
|
|
|
143.4
|
|
149.0
|
|
5.6
|
|
|
Goodwill
impairment
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
318.3
|
|
318.3
|
|
|
Franchise rights
impairment
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
57.5
|
|
57.5
|
|
|
Other (income) expense,
net
|
|
(2.7)
|
|
6.6
|
|
9.3
|
|
|
|
(3.3)
|
|
11.1
|
|
14.4
|
|
|
Operating
income
|
|
503.3
|
|
271.7
|
|
231.6
|
|
85.2
|
|
1,370.4
|
|
253.8
|
|
1,116.6
|
|
440.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating income
(expense) items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Floorplan interest
expense
|
|
(4.9)
|
|
(11.1)
|
|
6.2
|
|
|
|
(20.9)
|
|
(52.9)
|
|
32.0
|
|
|
|
Other interest
expense
|
|
(24.1)
|
|
(23.6)
|
|
(0.5)
|
|
|
|
(66.2)
|
|
(70.3)
|
|
4.1
|
|
|
|
Other income (loss),
net
|
|
(0.8)
|
|
6.5
|
|
(7.3)
|
|
|
|
19.1
|
|
218.2
|
|
(199.1)
|
|
|
Income from continuing
operations before income taxes
|
$
|
473.5
|
$
|
243.5
|
$
|
230.0
|
|
94.5
|
$
|
1,302.4
|
$
|
348.8
|
$
|
953.6
|
|
273.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail vehicle unit
sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
|
|
58,277
|
|
65,998
|
|
(7,721)
|
|
(11.7)
|
|
204,802
|
|
177,250
|
|
27,552
|
|
15.5
|
|
Used
|
|
77,553
|
|
64,587
|
|
12,966
|
|
20.1
|
|
229,922
|
|
179,656
|
|
50,266
|
|
28.0
|
|
|
|
|
135,830
|
|
130,585
|
|
5,245
|
|
4.0
|
|
434,724
|
|
356,906
|
|
77,818
|
|
21.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per vehicle
retailed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
|
$
|
47,254
|
$
|
41,644
|
$
|
5,610
|
|
13.5
|
$
|
44,748
|
$
|
41,137
|
$
|
3,611
|
|
8.8
|
|
Used
|
$
|
27,829
|
$
|
22,001
|
$
|
5,828
|
|
26.5
|
$
|
25,609
|
$
|
21,405
|
$
|
4,204
|
|
19.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit per
vehicle retailed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
|
$
|
5,484
|
$
|
2,533
|
$
|
2,951
|
|
116.5
|
$
|
4,053
|
$
|
2,162
|
$
|
1,891
|
|
87.5
|
|
Used
|
$
|
2,103
|
$
|
1,994
|
$
|
109
|
|
5.5
|
$
|
2,039
|
$
|
1,771
|
$
|
268
|
|
15.1
|
|
Finance and
insurance
|
$
|
2,569
|
$
|
2,153
|
$
|
416
|
|
19.3
|
$
|
2,371
|
$
|
2,139
|
$
|
232
|
|
10.8
|
|
Total variable
operations(1)
|
$
|
6,122
|
$
|
4,420
|
$
|
1,702
|
|
38.5
|
$
|
5,359
|
$
|
4,104
|
$
|
1,255
|
|
30.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Percentages
|
|
Three Months
Ended September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 (%)
|
|
2020 (%)
|
|
2021 (%)
|
|
2020 (%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue mix
percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
|
|
43.2
|
|
50.9
|
|
47.6
|
|
49.9
|
|
|
|
|
|
|
|
|
|
Used vehicle
|
|
36.4
|
|
28.1
|
|
32.7
|
|
28.0
|
|
|
|
|
|
|
|
|
|
Parts and
service
|
|
14.8
|
|
15.8
|
|
14.3
|
|
16.6
|
|
|
|
|
|
|
|
|
|
Finance and insurance,
net
|
|
5.5
|
|
5.2
|
|
5.4
|
|
5.2
|
|
|
|
|
|
|
|
|
|
Other
|
|
0.1
|
|
-
|
|
-
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
100.0
|
|
100.0
|
|
100.0
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit mix
percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
|
|
25.1
|
|
17.2
|
|
22.9
|
|
14.9
|
|
|
|
|
|
|
|
|
|
Used vehicle
|
|
13.9
|
|
15.1
|
|
14.3
|
|
13.8
|
|
|
|
|
|
|
|
|
|
Parts and
service
|
|
33.4
|
|
38.6
|
|
34.3
|
|
41.7
|
|
|
|
|
|
|
|
|
|
Finance and
insurance
|
|
27.4
|
|
28.9
|
|
28.4
|
|
29.6
|
|
|
|
|
|
|
|
|
|
Other
|
|
0.2
|
|
0.2
|
|
0.1
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
100.0
|
|
100.0
|
|
100.0
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating items as a
percentage of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
|
|
11.6
|
|
6.1
|
|
9.1
|
|
5.3
|
|
|
|
|
|
|
|
|
|
|
Used vehicle -
retail
|
|
7.6
|
|
9.1
|
|
8.0
|
|
8.3
|
|
|
|
|
|
|
|
|
|
|
Parts and
service
|
|
45.0
|
|
44.0
|
|
45.4
|
|
44.5
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
19.9
|
|
18.0
|
|
18.9
|
|
17.7
|
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative expenses
|
|
11.3
|
|
11.9
|
|
11.0
|
|
12.3
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
7.9
|
|
5.0
|
|
7.1
|
|
1.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating items as a
percentage of total gross profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative expenses
|
|
56.9
|
|
66.0
|
|
58.4
|
|
69.4
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
39.6
|
|
28.0
|
|
37.7
|
|
9.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
AUTONATION,
INC.
|
UNAUDITED
SUPPLEMENTARY DATA
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating
Highlights
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
2021
|
|
2020
|
|
$ Variance
|
|
% Variance
|
|
2021
|
|
2020
|
|
$ Variance
|
|
% Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
$
|
1,955.2
|
$
|
1,734.5
|
$
|
220.7
|
|
12.7
|
$
|
5,926.7
|
$
|
4,704.0
|
$
|
1,222.7
|
|
26.0
|
|
Import
|
|
1,983.3
|
|
1,621.5
|
|
361.8
|
|
22.3
|
|
5,927.9
|
|
4,308.9
|
|
1,619.0
|
|
37.6
|
|
Premium
luxury
|
|
2,218.0
|
|
1,870.0
|
|
348.0
|
|
18.6
|
|
6,790.0
|
|
5,051.6
|
|
1,738.4
|
|
34.4
|
|
Total
|
|
6,156.5
|
|
5,226.0
|
|
930.5
|
|
17.8
|
|
18,644.6
|
|
14,064.5
|
|
4,580.1
|
|
32.6
|
|
Corporate and
other
|
|
223.0
|
|
178.9
|
|
44.1
|
|
24.7
|
|
617.1
|
|
540.4
|
|
76.7
|
|
14.2
|
|
Total consolidated revenue
|
$
|
6,379.5
|
$
|
5,404.9
|
$
|
974.6
|
|
18.0
|
$
|
19,261.7
|
$
|
14,604.9
|
$
|
4,656.8
|
|
31.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
income*:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
$
|
149.1
|
$
|
111.9
|
$
|
37.2
|
|
33.2
|
$
|
436.6
|
$
|
248.1
|
$
|
188.5
|
|
76.0
|
|
Import
|
|
200.7
|
|
123.5
|
|
77.2
|
|
62.5
|
|
530.3
|
|
277.7
|
|
252.6
|
|
91.0
|
|
Premium
luxury
|
|
206.1
|
|
143.9
|
|
62.2
|
|
43.2
|
|
590.3
|
|
313.3
|
|
277.0
|
|
88.4
|
|
Total
|
|
555.9
|
|
379.3
|
|
176.6
|
|
46.6
|
|
1,557.2
|
|
839.1
|
|
718.1
|
|
85.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and
other
|
|
(57.5)
|
|
(118.7)
|
|
61.2
|
|
|
|
(207.7)
|
|
(638.2)
|
|
430.5
|
|
|
Add: Floorplan
interest expense
|
|
4.9
|
|
11.1
|
|
(6.2)
|
|
|
|
20.9
|
|
52.9
|
|
(32.0)
|
|
|
Operating
income
|
$
|
503.3
|
$
|
271.7
|
$
|
231.6
|
|
85.2
|
$
|
1,370.4
|
$
|
253.8
|
$
|
1,116.6
|
|
440.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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
|
|
15,878
|
|
21,620
|
|
(5,742)
|
|
(26.6)
|
|
59,006
|
|
57,995
|
|
1,011
|
|
1.7
|
|
Import
|
|
27,968
|
|
29,356
|
|
(1,388)
|
|
(4.7)
|
|
94,947
|
|
78,248
|
|
16,699
|
|
21.3
|
|
Premium
luxury
|
|
14,431
|
|
15,022
|
|
(591)
|
|
(3.9)
|
|
50,849
|
|
41,007
|
|
9,842
|
|
24.0
|
|
|
|
58,277
|
|
65,998
|
|
(7,721)
|
|
(11.7)
|
|
204,802
|
|
177,250
|
|
27,552
|
|
15.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail used vehicle
unit sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
26,989
|
|
22,095
|
|
4,894
|
|
22.1
|
|
79,524
|
|
63,025
|
|
16,499
|
|
26.2
|
|
Import
|
|
26,450
|
|
22,281
|
|
4,169
|
|
18.7
|
|
78,679
|
|
61,414
|
|
17,265
|
|
28.1
|
|
Premium
luxury
|
|
21,031
|
|
18,075
|
|
2,956
|
|
16.4
|
|
62,935
|
|
49,013
|
|
13,922
|
|
28.4
|
|
|
|
74,470
|
|
62,451
|
|
12,019
|
|
19.2
|
|
221,138
|
|
173,452
|
|
47,686
|
|
27.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brand Mix - Retail
New Vehicle Units Sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
2021 (%)
|
|
2020 (%)
|
|
2021 (%)
|
|
2020 (%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ford,
Lincoln
|
|
8.6
|
|
11.7
|
|
9.8
|
|
11.8
|
|
|
|
|
|
|
|
|
|
Chevrolet,
Buick, Cadillac, GMC
|
|
9.1
|
|
10.7
|
|
10.0
|
|
11.0
|
|
|
|
|
|
|
|
|
|
Chrysler,
Dodge, Jeep, Ram
|
|
9.5
|
|
10.4
|
|
9.0
|
|
9.9
|
|
|
|
|
|
|
|
|
|
Domestic total
|
|
27.2
|
|
32.8
|
|
28.8
|
|
32.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Import:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Toyota
|
|
23.4
|
|
21.1
|
|
22.1
|
|
20.5
|
|
|
|
|
|
|
|
|
|
Honda
|
|
14.0
|
|
13.6
|
|
14.0
|
|
13.6
|
|
|
|
|
|
|
|
|
|
Nissan
|
|
2.6
|
|
2.5
|
|
2.6
|
|
2.6
|
|
|
|
|
|
|
|
|
|
Other
Import
|
|
8.0
|
|
7.2
|
|
7.7
|
|
7.5
|
|
|
|
|
|
|
|
|
|
Import total
|
|
48.0
|
|
44.4
|
|
46.4
|
|
44.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premium
Luxury:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mercedes-Benz
|
|
7.6
|
|
8.1
|
|
8.5
|
|
8.9
|
|
|
|
|
|
|
|
|
|
BMW
|
|
8.1
|
|
6.0
|
|
7.4
|
|
5.8
|
|
|
|
|
|
|
|
|
|
Lexus
|
|
3.6
|
|
2.7
|
|
3.0
|
|
2.5
|
|
|
|
|
|
|
|
|
|
Audi
|
|
1.9
|
|
2.2
|
|
2.3
|
|
2.2
|
|
|
|
|
|
|
|
|
|
Jaguar
Land Rover
|
|
1.8
|
|
2.2
|
|
2.0
|
|
2.3
|
|
|
|
|
|
|
|
|
|
Other
Premium Luxury
|
|
1.8
|
|
1.6
|
|
1.6
|
|
1.4
|
|
|
|
|
|
|
|
|
|
Premium Luxury
total
|
|
24.8
|
|
22.8
|
|
24.8
|
|
23.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
(1)
|
$
|
47.5
|
$
|
37.3
|
$
|
166.2
|
$
|
91.9
|
|
|
|
|
|
Cash paid for
acquisitions, net of cash acquired
|
$
|
209.1
|
$
|
-
|
$
|
209.1
|
$
|
0.4
|
|
|
|
|
|
Proceeds from exercises
of stock options
|
$
|
13.6
|
$
|
30.5
|
$
|
42.6
|
$
|
31.5
|
|
|
|
|
|
Stock
repurchases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate purchase
price
|
$
|
879.2
|
$
|
-
|
$
|
1,921.4
|
$
|
80.0
|
|
|
|
|
|
|
Shares repurchased (in
millions)
|
|
7.9
|
|
-
|
|
19.2
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Floorplan Assistance
and Expense
|
|
Three Months
Ended September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2021
|
|
2020
|
|
Variance
|
|
2021
|
|
2020
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Floorplan assistance
earned (included in cost of sales)
|
$
|
27.1
|
$
|
28.9
|
$
|
(1.8)
|
$
|
93.9
|
$
|
77.1
|
$
|
16.8
|
|
New vehicle floorplan
interest expense
|
|
(3.8)
|
|
(10.4)
|
|
6.6
|
|
(18.7)
|
|
(47.6)
|
|
28.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net new vehicle
inventory carrying benefit
|
$
|
23.3
|
$
|
18.5
|
$
|
4.8
|
$
|
75.2
|
$
|
29.5
|
$
|
45.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet and
Other Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2021
|
|
December 31,
2020
|
|
September 30,
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
72.0
|
$
|
569.6
|
$
|
350.5
|
|
|
|
|
|
|
|
Inventory
|
$
|
1,496.6
|
$
|
2,598.5
|
$
|
2,482.5
|
|
|
|
|
|
|
|
Total floorplan notes
payable
|
$
|
1,248.4
|
$
|
2,759.9
|
$
|
2,308.6
|
|
|
|
|
|
|
|
Non-vehicle
debt
|
$
|
2,680.3
|
$
|
2,101.8
|
$
|
2,089.7
|
|
|
|
|
|
|
|
Equity
|
$
|
2,356.5
|
$
|
3,235.7
|
$
|
3,357.9
|
|
|
|
|
|
|
|
New days supply
(industry standard of selling days)
|
|
10
days
|
|
42
days
|
|
43
days
|
|
|
|
|
|
|
|
Used days supply
(trailing calendar month days)
|
|
35
days
|
|
39
days
|
|
39
days
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Credit Agreement
Covenant Compliance Calculations(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leverage
ratio
|
|
|
1.40x
|
|
|
|
|
|
|
|
|
|
Covenant
|
less than or equal
to
|
|
3.75x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalization
ratio
|
|
|
48.6%
|
|
|
|
|
|
|
|
|
|
Covenant
|
less than or equal
to
|
|
70.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes accrued
construction in progress and excludes property associated with
leases entered into during the period
|
|
(2)
|
Calculated in
accordance with our credit agreement as filed with the
SEC
|
AUTONATION,
INC.
|
UNAUDITED
SUPPLEMENTARY DATA, Continued
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable Basis
Reconciliations(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
Gross
Profit
|
|
Operating
Income
|
|
Income from
Continuing
Operations Before
Income Taxes
|
|
Income Tax
Provision(2)
|
|
Effective Tax
Rate
|
|
Net
Income
|
|
Diluted Earnings Per
Share(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
361.7
|
$
|
182.6
|
$
|
5.12
|
$
|
2.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations, net of income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
-
|
$
|
-
|
$
|
-
|
From continuing
operations, as reported
|
|
$
1,271.9
|
|
$
971.5
|
$
|
503.3
|
$
|
271.7
|
$
|
473.5
|
$
|
243.5
|
$
|
111.8
|
$
|
60.9
|
|
23.6%
|
|
25.0%
|
|
361.7
|
|
182.6
|
$
|
5.12
|
$
|
2.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on equity
investment
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2.0
|
|
-
|
|
0.5
|
|
|
|
|
|
-
|
|
1.5
|
$
|
-
|
$
|
0.02
|
|
ACP inventory valuation
adjustment
|
|
-
|
|
20.6
|
|
-
|
|
20.6
|
|
-
|
|
20.6
|
|
-
|
|
5.0
|
|
|
|
|
|
-
|
|
15.6
|
$
|
-
|
$
|
0.18
|
|
SG&A costs
associated with exit of ACP business(4)
|
|
-
|
|
-
|
|
-
|
|
2.9
|
|
-
|
|
2.9
|
|
-
|
|
0.7
|
|
|
|
|
|
-
|
|
2.2
|
$
|
-
|
$
|
0.02
|
|
Other costs associated
with exit of ACP business(5)
|
|
-
|
|
-
|
|
-
|
|
13.0
|
|
-
|
|
13.0
|
|
-
|
|
3.1
|
|
|
|
|
|
-
|
|
9.9
|
$
|
-
|
$
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
$
1,271.9
|
|
$
992.1
|
$
|
503.3
|
$
|
308.2
|
$
|
473.5
|
$
|
282.0
|
$
|
111.8
|
$
|
70.2
|
|
23.6%
|
|
24.9%
|
$
|
361.7
|
$
|
211.8
|
$
|
5.12
|
$
|
2.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A
|
|
SG&A as a
Percentage of
Gross Profit (%)(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
|
$
723.7
|
|
$
641.4
|
|
56.9
|
|
66.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding SG&A
costs associated with exit of ACP business
|
|
-
|
|
2.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
$
723.7
|
|
$
638.5
|
|
56.9
|
|
64.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
Includes $2.1 million
related to accelerated amortization and $0.8 million related to
involuntary termination benefits.
|
|
|
(5)
|
Includes $7.3 million
related to contract termination charges, $2.9 million related to
accelerated depreciation, and $2.8 million related to asset
impairments.
|
|
|
(6)
|
Both numerator and
denominator are adjusted, as applicable.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AUTONATION,
INC.
|
UNAUDITED
SUPPLEMENTARY DATA, Continued
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable Basis
Reconciliations(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
Gross
Profit
|
|
Operating
Income
|
|
Income from
Continuing
Operations Before
Income Taxes
|
|
Income Tax
Provision(2)
|
|
Effective Tax
Rate
|
|
Net
Income
|
|
Diluted Earnings Per
Share(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
985.9
|
|
$
230.1
|
|
$
12.62
|
|
$
2.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations, net of income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.2
|
|
0.2
|
|
$
-
|
|
$
-
|
From continuing
operations, as reported
|
|
$
3,631.0
|
|
$
2,579.7
|
|
$
1,370.4
|
|
$
253.8
|
|
$
1,302.4
|
|
$
348.8
|
|
$
316.3
|
|
$
118.5
|
|
24.3%
|
|
34.0%
|
|
986.1
|
|
230.3
|
|
$
12.63
|
|
$
2.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on equity
investment
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(7.5)
|
|
(212.7)
|
|
(1.8)
|
|
(53.7)
|
|
|
|
|
|
(5.7)
|
|
(159.0)
|
|
$
(0.07)
|
|
$
(1.79)
|
|
ACP inventory valuation
adjustment
|
|
-
|
|
20.6
|
|
-
|
|
20.6
|
|
-
|
|
20.6
|
|
-
|
|
5.0
|
|
|
|
|
|
-
|
|
15.6
|
|
$
-
|
|
$
0.18
|
|
SG&A costs
associated with exit of ACP business(4)
|
|
-
|
|
-
|
|
-
|
|
2.9
|
|
-
|
|
2.9
|
|
-
|
|
0.7
|
|
|
|
|
|
-
|
|
2.2
|
|
$
-
|
|
$
0.02
|
|
Other costs associated
with exit of ACP business(5)
|
|
-
|
|
-
|
|
-
|
|
13.0
|
|
-
|
|
13.0
|
|
-
|
|
3.1
|
|
|
|
|
|
-
|
|
9.9
|
|
$
-
|
|
$
0.11
|
|
Executive separation
costs
|
|
-
|
|
-
|
|
-
|
|
5.5
|
|
-
|
|
5.5
|
|
-
|
|
1.0
|
|
|
|
|
|
-
|
|
4.5
|
|
$
-
|
|
$
0.05
|
|
Goodwill and franchise
rights impairment
|
|
-
|
|
-
|
|
-
|
|
375.8
|
|
-
|
|
375.8
|
|
-
|
|
67.4
|
|
|
|
|
|
-
|
|
308.4
|
|
$
-
|
|
$
3.47
|
|
Asset impairments and
net gains on store dispositions
|
|
-
|
|
-
|
|
-
|
|
8.4
|
|
-
|
|
8.4
|
|
-
|
|
2.2
|
|
|
|
|
|
-
|
|
6.2
|
|
$
-
|
|
$
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
$
3,631.0
|
|
$
2,600.3
|
|
$
1,370.4
|
|
$
680.0
|
|
$
1,294.9
|
|
$
562.3
|
|
$
314.5
|
|
$
144.2
|
|
24.3%
|
|
25.6%
|
|
$
980.4
|
|
$
418.1
|
|
$
12.55
|
|
$
4.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A
|
|
SG&A as a
Percentage of
Gross Profit (%)(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
|
$
2,120.5
|
|
$
1,790.0
|
|
58.4
|
|
69.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding SG&A
costs associated with exit of ACP business
|
|
-
|
|
2.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding executive
separation costs
|
|
-
|
|
5.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
$
2,120.5
|
|
$
1,781.6
|
|
58.4
|
|
68.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
Includes $2.1 million
related to accelerated amortization and $0.8 million related to
involuntary termination benefits.
|
|
|
(5)
|
Includes $7.3 million
related to contract termination charges, $2.9 million related to
accelerated depreciation, and $2.8 million related to asset
impairments.
|
|
|
(6)
|
Both numerator and
denominator are adjusted, as applicable.
|
AUTONATION,
INC.
|
UNAUDITED SAME
STORE DATA
|
($ in millions,
except per vehicle data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Highlights
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2021
|
|
2020
|
|
$ Variance
|
|
% Variance
|
|
2021
|
|
2020
|
|
$ Variance
|
|
% Variance
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
|
$
|
2,753.8
|
|
2,743.2
|
$
|
10.6
|
|
0.4
|
$
|
9,156.7
|
|
7,278.0
|
$
|
1,878.7
|
|
25.8
|
|
|
Retail used
vehicle
|
|
2,146.6
|
|
1,418.3
|
|
728.3
|
|
51.4
|
|
5,867.2
|
|
3,837.2
|
|
2,030.0
|
|
52.9
|
|
|
Wholesale
|
|
164.6
|
|
95.7
|
|
68.9
|
|
72.0
|
|
406.3
|
|
244.1
|
|
162.2
|
|
66.4
|
|
Used vehicle
|
|
2,311.2
|
|
1,514.0
|
|
797.2
|
|
52.7
|
|
6,273.5
|
|
4,081.3
|
|
2,192.2
|
|
53.7
|
|
Finance and insurance,
net
|
|
348.3
|
|
280.8
|
|
67.5
|
|
24.0
|
|
1,029.3
|
|
762.0
|
|
267.3
|
|
35.1
|
|
|
Total variable
operations
|
|
5,413.3
|
|
4,538.0
|
|
875.3
|
|
19.3
|
|
16,459.5
|
|
12,121.3
|
|
4,338.2
|
|
35.8
|
|
Parts and
service
|
|
942.4
|
|
836.9
|
|
105.5
|
|
12.6
|
|
2,740.8
|
|
2,364.6
|
|
376.2
|
|
15.9
|
|
Other
|
|
10.0
|
|
5.4
|
|
4.6
|
|
|
|
25.8
|
|
40.4
|
|
(14.6)
|
|
|
Total
revenue
|
$
|
6,365.7
|
|
5,380.3
|
$
|
985.4
|
|
18.3
|
$
|
19,226.1
|
|
14,526.3
|
$
|
4,699.8
|
|
32.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
|
$
|
319.6
|
|
166.9
|
$
|
152.7
|
|
91.5
|
$
|
829.5
|
|
382.7
|
$
|
446.8
|
|
116.7
|
|
|
Retail used
vehicle
|
|
162.2
|
|
128.5
|
|
33.7
|
|
26.2
|
|
466.9
|
|
317.7
|
|
149.2
|
|
47.0
|
|
|
Wholesale
|
|
13.9
|
|
18.1
|
|
(4.2)
|
|
|
|
51.2
|
|
36.8
|
|
14.4
|
|
|
|
Used vehicle
|
|
176.1
|
|
146.6
|
|
29.5
|
|
20.1
|
|
518.1
|
|
354.5
|
|
163.6
|
|
46.1
|
|
Finance and
insurance
|
|
348.3
|
|
280.8
|
|
67.5
|
|
24.0
|
|
1,029.3
|
|
762.0
|
|
267.3
|
|
35.1
|
|
|
Total variable
operations
|
|
844.0
|
|
594.3
|
|
249.7
|
|
42.0
|
|
2,376.9
|
|
1,499.2
|
|
877.7
|
|
58.5
|
|
Parts and
service
|
|
424.3
|
|
391.5
|
|
32.8
|
|
8.4
|
|
1,244.4
|
|
1,084.2
|
|
160.2
|
|
14.8
|
|
Other
|
|
1.4
|
|
0.7
|
|
0.7
|
|
|
|
3.7
|
|
2.3
|
|
1.4
|
|
|
Total gross
profit
|
$
|
1,269.7
|
|
986.5
|
$
|
283.2
|
|
28.7
|
$
|
3,625.0
|
|
2,585.7
|
$
|
1,039.3
|
|
40.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail vehicle unit
sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
|
|
58,276
|
|
65,838
|
|
(7,562)
|
|
(11.5)
|
|
204,569
|
|
176,796
|
|
27,773
|
|
15.7
|
|
Used
|
|
77,073
|
|
64,393
|
|
12,680
|
|
19.7
|
|
228,944
|
|
179,051
|
|
49,893
|
|
27.9
|
|
|
|
|
135,349
|
|
130,231
|
|
5,118
|
|
3.9
|
|
433,513
|
|
355,847
|
|
77,666
|
|
21.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per vehicle
retailed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
|
$
|
47,254
|
|
41,666
|
$
|
5,588
|
|
13.4
|
$
|
44,761
|
|
41,166
|
$
|
3,595
|
|
8.7
|
|
Used
|
$
|
27,852
|
|
22,026
|
$
|
5,826
|
|
26.5
|
$
|
25,627
|
|
21,431
|
$
|
4,196
|
|
19.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit per
vehicle retailed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
|
$
|
5,484
|
|
2,535
|
$
|
2,949
|
|
116.3
|
$
|
4,055
|
|
2,165
|
$
|
1,890
|
|
87.3
|
|
Used
|
$
|
2,104
|
|
1,996
|
$
|
108
|
|
5.4
|
$
|
2,039
|
|
1,774
|
$
|
265
|
|
14.9
|
|
Finance and
insurance
|
$
|
2,573
|
|
2,156
|
$
|
417
|
|
19.3
|
$
|
2,374
|
|
2,141
|
$
|
233
|
|
10.9
|
|
Total variable
operations(1)
|
$
|
6,133
|
|
4,424
|
$
|
1,709
|
|
38.6
|
$
|
5,365
|
|
4,110
|
$
|
1,255
|
|
30.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Percentages
|
|
Three Months
Ended September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 (%)
|
|
2020 (%)
|
|
2021 (%)
|
|
2020 (%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue mix
percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
|
|
43.3
|
|
51.0
|
|
47.6
|
|
50.1
|
|
|
|
|
|
|
|
|
|
Used vehicle
|
|
36.3
|
|
28.1
|
|
32.6
|
|
28.1
|
|
|
|
|
|
|
|
|
|
Parts and
service
|
|
14.8
|
|
15.6
|
|
14.3
|
|
16.3
|
|
|
|
|
|
|
|
|
|
Finance and insurance,
net
|
|
5.5
|
|
5.2
|
|
5.4
|
|
5.2
|
|
|
|
|
|
|
|
|
|
Other
|
|
0.1
|
|
0.1
|
|
0.1
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
100.0
|
|
100.0
|
|
100.0
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit mix
percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
|
|
25.2
|
|
16.9
|
|
22.9
|
|
14.8
|
|
|
|
|
|
|
|
|
|
Used vehicle
|
|
13.9
|
|
14.9
|
|
14.3
|
|
13.7
|
|
|
|
|
|
|
|
|
|
Parts and
service
|
|
33.4
|
|
39.7
|
|
34.3
|
|
41.9
|
|
|
|
|
|
|
|
|
|
Finance and
insurance
|
|
27.4
|
|
28.5
|
|
28.4
|
|
29.5
|
|
|
|
|
|
|
|
|
|
Other
|
|
0.1
|
|
-
|
|
0.1
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
100.0
|
|
100.0
|
|
100.0
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating items as a
percentage of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
|
|
11.6
|
|
6.1
|
|
9.1
|
|
5.3
|
|
|
|
|
|
|
|
|
|
|
Used vehicle -
retail
|
|
7.6
|
|
9.1
|
|
8.0
|
|
8.3
|
|
|
|
|
|
|
|
|
|
|
Parts and
service
|
|
45.0
|
|
46.8
|
|
45.4
|
|
45.9
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
19.9
|
|
18.3
|
|
18.9
|
|
17.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/autonation-reports-sixth-consecutive-all-time-record-quarter-301405152.html
SOURCE AutoNation, Inc.