FORT LAUDERDALE, Fla., Oct. 28 /PRNewswire/ -- AutoNation, Inc. (NYSE: AN)
today reported that for the three months ended September 30, 1999, earnings
per share from continuing operations rose 29 percent to $0.22, or $92.6
million, from $0.17, or $81.3 million for the same period in 1998. For the
nine months ended September 30, 1999, earnings per share from continuing
operations rose 57 percent to $0.55, or $248.1 million, from $0.35, or $163.2
million for the same period last year.
Revenue for the three months ended September 30, 1999, rose 56 percent to
$5.5 billion from $3.5 billion during the same period in 1998. Revenue for
the nine months ended September 30, 1999 increased 67 percent to $15.1 billion
compared to $9.0 billion reported last year.
Operating income for the three months ended September 30, 1999 increased
18 percent to $141.4 million from $119.7 million last year. Operating income
for the nine months ended September 30, 1999 increased 49 percent to $389.2
million from $260.5 million last year.
Commenting on the Company's performance in the quarter, Michael Maroone,
President, said, "Our automotive retail business continues to produce very
strong results. Same store revenue, including our AutoNation USA megastores,
increased 11 percent in the quarter, including a 16 percent gain in new
vehicle unit sales. In Denver, where our 'Mile High' project is now nine
months old, we generated same store revenue gains of over 30 percent in the
quarter, and we grew same store new vehicle unit sales more than 55 percent.
"Also in the quarter, we launched the largest branding initiative in
automotive retailing history, by sub-branding many of our new vehicle
franchises nationwide with the AutoNation USA name. The branding campaign
will highlight a range of uniform sales and service promises that AutoNation
USA dealers will offer. In addition, we integrated two additional megastores
with new vehicle franchises."
Commenting on the Company's position as the leading vehicle retailer on
the Internet, Mr. Maroone added, "Last week, we achieved Internet sales year-
to-date of $750 million and we began offering the largest online inventory of
new and used vehicles through AutoNationDirect.com. During the third quarter,
AutoNation sold more than 14,000 vehicles via the Internet and generated over
$316 million in revenue. For the nine months of 1999, our web sites generated
over 31,000 vehicle sales and over $711 million in revenue."
As previously announced, the Company plans to separate its automotive
rental business from its automotive retail business in the form of a tax-free
dividend of shares of the new automotive rental company to the shareholders of
AutoNation. Due to the planned separation, the automotive rental operations
have been reflected as discontinued operations. Income from discontinued
operations, net of taxes, for the three months ended September 30, 1999 was
$12.1 million, or $0.02 per share. Income from discontinued operations, net
of taxes, for the nine months ended September 30, 1999 was $437.9 million, or
$0.98 per share, including the results of operations and the gain on the
disposal of Republic Services, Inc., our former waste subsidiary.
The Company also announced that its Chief Executive Officer, Michael J.
Jackson, has been elected to the Board of Directors, replacing Steven R.
Berrard, who elected to leave the Board.
AutoNation, Inc. is the world's largest automotive retailer, with 406
franchises in 21 states and 41 AutoNation USA used vehicle megastores in 13
states. AutoNation also operates more than 270 web sites. Its automotive
rental operations, including Alamo Rent-A-Car, Inc., National Car Rental
System, Inc. and CarTemps USA, operates nationally and in more than 65
countries.
Certain statements and information included in this release constitute
"forward-looking statements" within the meaning of the Federal Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which may
cause the actual results, performance, or achievements of the Company to be
materially different from any future results, performance, or achievements
expressed or implied in such forward looking statements. Additional
discussion of factors that could cause actual results to differ materially
from management's projections, forecasts, estimates and expectations is
contained in the Company's SEC filings.
AUTONATION, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
Three Months Ended September 30,
1999 1998
(a)
% %
Revenue:
New vehicle $3,207.6 58.7 $1,904.4 54.3
Used vehicle 1,220.5 22.4 907.3 25.9
Fixed operations 583.9 10.7 393.0 11.2
Other 447.7 8.2 303.3 8.6
5,459.7 100.0 3,508.0 100.0
Cost of operations 4,709.7 86.3 3,003.2 85.6
Gross margin 750.0 13.7 504.8 14.4
Selling, general and
administrative
expenses 608.6 11.1 385.1 11.0
Operating income 141.4 2.6 119.7 3.4
Net interest income
(expense) 1.6 3.2
Other income (expense) 1.7 4.1
Income from continuing
operations before
income taxes 144.7 127.0
Provision for
income taxes 52.1 45.7
Income from
continuing
operations 92.6 81.3
Discontinued operations:
Income from discontinued
operations, net of
income taxes and
minority interest 18.5 98.4
Gain (loss) on disposal
of segment, net of
income taxes (6.4) ---
12.1 98.4
Net income $104.7 $179.7
Diluted income per
common and common
equivalent share:
Continuing operations $0.22 $0.17
Discontinued operations 0.02 0.21
Net income $0.24 $0.38
Weighted average common
and common equivalent
shares 429.7 475.6
AUTONATION, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
Nine Months Ended September 30,
1999 1998
(a)
% %
Revenue:
New vehicle $8,662.8 57.4 $4,818.9 53.4
Used vehicle 3,578.7 23.7 2,473.0 27.4
Fixed operations 1,642.2 10.9 962.0 10.7
Other 1,208.3 8.0 770.1 8.5
15,092.0 100.0 9,024.0 100.0
Cost of operations 13,025.0 86.3 7,770.3 86.1
Gross margin 2,067.0 13.7 1,253.7 13.9
Selling, general
and administrative
expenses 1,677.8 11.1 993.2 11.0
Operating income 389.2 2.6 260.5 2.9
Net interest income
(expense) (6.3) (5.4)
Other income (expense) 4.8 (0.2)
Income from continuing
operations before
income taxes 387.7 254.9
Provision for
income taxes 139.6 91.7
Income from
continuing operations 248.1 163.2
Discontinued operations:
Income from
discontinued
operations,
net of income taxes
and minority interest 65.0 221.0
Gain (loss) on disposal
of segment, net of
income taxes 372.9 ---
437.9 221.0
Net income $686.0 $384.2
Diluted income per
common and common
equivalent share:
Continuing operations $0.55 $0.35
Discontinued operations 0.98 0.47
Net income $1.53 $0.82
Weighted average common
and common equivalent
shares 449.1 469.3
(a) Operating results for the three and nine months ended September 30,
1998 have been restated to present the Company'sautomotive rental and
solid waste services divisions as discontinued operations.
AUTONATION, INC.
UNAUDITED SAME STORE OPERATING DATA
(In millions)
Three Months Ended September 30, Nine Months Ended September 30,
1999 1998% Change1999 1998 % Change
Revenue:
New vehicle $ 2,139.1 $1,769.3 20.9 $5,246.9 $4,552.0 15.3
Used vehicle 813.1 816.8 (0.5) 2,218.4 2,288.9 (3.1)
Fixed
operations 381.2 366.1 4.1 968.6 907.9 6.7
Other 240.4 261.1 (7.9) 686.8 710.2 (3.3)
$ 3,573.8 $3,213.3 11.2 $9,120.7 $8,459.0 7.8
Gross Margin $474.3 $443.6 6.9 $1,202.6 $1,142.0 5.3
% 13.3% 13.8% (0.5) 13.2% 13.5% (0.3)
S,G&A $355.9 $332.7 7.0 $ 908.6 $872.3 4.2
% 10.0% 10.3% (0.3) 10.0% 10.3% (0.3)
Operating
Income $118.4 $110.9 6.8 $ 294.0 $269.7 9.0
% 3.3% 3.5% (0.2) 3.2% 3.2% ---
SOURCE AutoNation, Inc.