FORT LAUDERDALE, Fla., Oct. 25 /PRNewswire/ -- AutoNation, Inc.
(NYSE: AN), America's largest retailer of new and used vehicles, today
reported third-quarter net income of $79.2 million, or $0.24 per share, for
the three months ended September 30, 2001, meeting the analysts' consensus
estimate, despite a challenging new vehicle sales environment, as same-store
sales rose for the Company's finance and insurance products, parts and service
and used vehicles.
The third-quarter net income of $0.24 per share earned on revenue of
$5 billion also matched the Company's year-ago earnings per share of $0.24,
which was based on net income of $86.3 million and revenue of $5.3 billion.
The year-earlier result excludes one-time items that resulted in a net gain of
$6.8 million, or $0.02 per share.
"Our strategic focus on higher-margin businesses continues to pay off,
delivering solid results despite a challenging sales environment and a
disruption to our business in September," said AutoNation Chief Executive
Officer Mike Jackson. "This demonstrates the resiliency of our automotive
retail model."
The Company said same-store revenue in the third quarter increased 11% for
finance and insurance products, 5% for parts and service and 1% for used
vehicles. Meanwhile, same-store sales revenue for new vehicles decreased 9%.
During the quarter, the Company also completed a $450 million senior note
offering -- AutoNation's first-ever bond issuance. The Company is currently
in the process of registering an exchange offer for the bonds, which is
expected to result in the bonds trading publicly later this year. The bonds
were part of a larger effort during the period to replace existing bank credit
facilities with a more diverse mix of debt instruments offering longer
maturities. As a result, the Company's long-term borrowing capacity now
stands at $1.2 billion, of which only half is drawn.
"Given the conservative stance of today's credit markets, we're extremely
pleased with the results of our re-capitalization efforts during the quarter,
which included the bond offering that exceeded our expectations by
$150 million," Mr. Jackson said. "These efforts have given AutoNation ample
financial flexibility to capitalize on opportunities in the future."
Also during the third quarter, AutoNation:
-
Generated earnings before interest, taxes, depreciation and
amortization (EBITDA) of $203.8 million.
-
Increased the sale of finance and insurance products by 25% on a
per-vehicle-retailed basis to $723 from $579 a year ago.
-
Improved the gross margin on parts and service to 43.3%, a
30-basis-point improvement from a year ago.
-
Reduced non-vehicle debt, net of cash, by $139.1 million or 21% during
the quarter to $530.5 million and by $242.1 million or 31% since
December 31, 2000.
-
Repurchased 6.2 million of its shares at a cost of $63.1 million,
leaving a board-authorized amount of $74.9 million for future
repurchases as of September 30, 2001. As announced yesterday, the
Company's Board of Directors authorized an additional
$250 million for share repurchases.
Recognizing an uncertain business environment lies ahead, Mr. Jackson
added: "We believe AutoNation's earnings for the fourth quarter ending
December 31, 2001 will meet the analysts' consensus estimate of $0.19 per
share or $0.86 per share for the full year. For 2002, industry forecasts
point to a downturn in U.S. new vehicle sales of 5% to 10%. However, despite
that environment, AutoNation believes its 2002 earnings per share will grow to
an expected range of $0.98 to $1.03, including an estimated $0.14 per share
from anticipated changes in goodwill amortization."
For the nine-month period ended September 30, 2001, the Company reported
net income of $225.4 million, or $0.67 per share, versus net income of
$254.4 million, or $0.70 per share, in the prior year. The year-ago result
excludes income from discontinued operations of $1.8 million, or $0.01 per
share. Also, for the nine-month period ended September 30, 2001, the Company
had revenue of $14.8 billion versus revenue of $15.9 billion in the prior
year.
AutoNation will discuss its third-quarter results, its earnings outlook
and supporting assumptions later this afternoon during a 1 p.m., Eastern Time,
conference call. To listen to the call, dial 800-288-8967 or listen via the
audio webcast offered at www.autonation.com by clicking on the "Corporate
Site" link and then clicking on the webcast icon. A playback of the
conference call will be available after 4:30 p.m., Eastern Time, through
November 2, 2001. The playback can be accessed by calling 800-475-6701
(access code 604743) or by visiting the "Audio Presentation" section of the
Investor Relations page of AutoNation's corporate site.
ABOUT AUTONATION, INC.
AutoNation, Inc., headquartered in Fort Lauderdale, Fla., is America's
largest retailer of new and used vehicles, on and off the Web. A Fortune
100 company, AutoNation employs approximately 31,000 people and owns and
operates 368 automotive retail franchises in 17 states. For additional
information, please visit www.autonation.com , where more than
100,000 vehicles are available for sale.
FORWARD-LOOKING STATEMENTS
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, estimates and expectations is contained in the
Company's SEC filings. The Company undertakes no duty to update its
forward-looking statements, including its earnings outlook.
AUTONATION, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
Revenue $5,011.5 $5,338.1 $14,840.6 $15,907.8
Cost of operations 4,252.2 4,560.7 12,588.2 13,594.3
Gross margin 759.3 777.4 2,252.4 2,313.5
Selling, general and
administrative expenses 554.8 547.3 1,649.4 1,650.4
Depreciation 18.0 14.6 50.0 42.4
Amortization 20.4 20.4 60.8 58.7
Restructuring and impairment
charges, net (0.6) (2.2) 8.1 (2.2)
Other gain (0.3) -- (19.3) --
Operating income 167.0 197.3 503.4 564.2
Floorplan interest expense (26.8) (47.8) (107.8) (146.8)
Other interest expense, net (8.7) (10.8) (24.5) (24.5)
Other income (expense) (1.6) 10.3 (2.4) 14.1
Income from continuing
operations before income
taxes 129.9 149.0 368.7 407.0
Provision for income taxes 50.7 55.9 143.3 152.6
Net income from continuing
operations 79.2 93.1 225.4 254.4
Income from discontinued
operations, net of income
taxes and minority interest -- -- -- 1.8
Net income $79.2 $93.1 $225.4 $256.2
Diluted earnings per share:
Continuing operations $0.24 $0.26 $0.67 $0.70
Discontinued operations -- -- -- 0.01
Net income $0.24 $0.26 $0.67 $0.71
Weighted average common and
common equivalent
shares outstanding 333.4 361.3 338.2 363.4
Common shares outstanding 327.2 360.7 327.2 360.7
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions, except gross margin per vehicle data)
Three Months Ended September 30,
2001 % 2000 %
Operating Highlights:
Revenue:
New vehicle $2,995.1 59.8 $3,258.1 61.0
Used vehicle 978.6 19.5 983.3 18.4
Parts and service 613.2 12.2 586.7 11.0
F&I 130.2 2.6 112.9 2.1
Other 294.4 5.9 397.1 7.5
$5,011.5 100.0 $5,338.1 100.0
Gross margin:
New vehicle $234.9 7.8 $268.6 8.2
Used vehicle 107.8 11.0 109.7 11.2
Parts and service 265.8 43.3 252.1 43.0
F&I 130.2 100.0 112.9 100.0
Other 20.6 7.0 34.1 8.6
759.3 15.2 777.4 14.6
S,G&A - Store 522.8 10.4 510.6 9.6
Store performance 236.5 4.8 266.8 5.0
S,G&A - Corporate 32.0 0.6 36.7 0.7
Depreciation 18.0 0.4 14.6 0.3
Amortization 20.4 0.4 20.4 0.3
Restructuring and impairment
charges, net (0.6) (0.0) (2.2) (0.0)
Other gain (0.3) (0.0) -- 0.0
Operating income $167.0 3.4 $197.3 3.7
Retail vehicle sales:
New 115,000 130,000
Used 65,000 65,000
180,000 195,000
Gross margin per vehicle retailed:
New $2,043 $2,066
Used $1,658 $1,688
F&I $723 $579
EBITDA 203.8 242.6
Capital expenditures $33.6 $29.9
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions, except gross margin per vehicle data)
Nine Months Ended September 30,
2001 % 2000 %
Operating Highlights:
Revenue:
New vehicle $8,804.0 59.3 $9,657.1 60.7
Used vehicle 2,928.1 19.7 2,995.0 18.8
Parts and service 1,814.2 12.2 1,763.4 11.1
F&I 363.9 2.5 331.2 2.1
Other 930.4 6.3 1,161.1 7.3
$14,840.6 100.0 $15,907.8 100.0
Gross margin:
New vehicle $715.9 8.1 $805.0 8.3
Used vehicle 327.0 11.2 341.0 11.4
Parts and service 783.9 43.2 753.0 42.7
F&I 363.9 100.0 331.2 100.0
Other 61.7 6.6 83.3 7.2
2,252.4 15.2 2,313.5 14.5
S,G&A - Store 1,543.5 10.4 1,530.0 9.6
Store performance 708.9 4.8 783.5 4.9
S,G&A - Corporate 105.9 0.7 120.4 0.7
Depreciation 50.0 0.3 42.4 0.3
Amortization 60.8 0.4 58.7 0.4
Restructuring and impairment charges,
net 8.1 0.1 (2.2) (0.0)
Other gain (19.3) (0.1) -- 0.0
Operating income $503.4 3.4 $564.2 3.5
Retail vehicle sales:
New 336,000 383,000
Used 194,000 199,000
530,000 582,000
Gross margin per vehicle retailed:
New $2,131 $2,102
Used $1,686 $1,714
F&I $687 $569
EBITDA 611.8 679.4
Capital expenditures $86.3 $82.8
Balance Sheet September 30 June 30 March 31 December 31 September 30
and Other 2001 2001 2001 2000 2000
Highlights:
Cash and cash
equivalents $89.1 $28.5 $85.4 $84.6 $135.8
Inventory 2,248.8 2,443.6 2,602.7 2,774.4 2,403.3
Floorplan notes
payable 1,921.2 2,110.1 2,294.6 2,454.0 1,997.7
Non-vehicle debt 619.6 698.1 832.2 857.2 933.6
Equity 3,878.5 3,858.5 3,803.4 3,842.5 3,856.0
Days supply (trailing 30 days):
New 55 days 59 days 63 days 83 days 55 days
Used 39 days 36 days 35 days 43 days 38 days
AUTONATION, INC.
UNAUDITED SAME STORE DATA
($ in millions, except gross margin per vehicle data)
Three Months Ended September 30,
2001 % 2000 %
Revenue:
New vehicle $2,874.9 59.6 $3,149.5 61.5
Used vehicle 943.9 19.6 936.1 18.3
Parts and service 590.1 12.2 562.3 11.0
F&I 123.3 2.6 110.6 2.1
Other 287.3 6.0 362.0 7.1
$4,819.5 100.0 $5,120.5 100.0
Gross margin:
New vehicle $225.9 7.9 $261.6 8.3
Used vehicle 104.1 11.0 104.4 11.2
Parts and service 255.8 43.4 241.7 43.0
F&I 123.3 100.0 110.6 100.0
Other 18.1 6.3 26.4 7.3
727.2 15.1 744.7 14.5
S,G&A - Store 502.3 10.4 489.4 9.5
Store performance $224.9 4.7 $255.3 5.0
Retail vehicle sales:
New 110,000 125,000
Used 63,000 62,000
173,000 187,000
Gross margin per vehicle retailed:
New $2,054 $2,093
Used $1,652 $1,684
F&I $713 $591
AUTONATION, INC.
UNAUDITED SAME STORE DATA
($ in millions, except gross margin per vehicle data)
Nine Months Ended September 30,
2001 % 2000 %
Revenue:
New vehicle $8,351.7 59.3 $9,234.3 61.3
Used vehicle 2,774.1 19.7 2,798.5 18.5
Parts and service 1,723.9 12.3 1,668.0 11.1
F&I 342.3 2.4 316.5 2.1
Other 883.2 6.3 1,051.3 7.0
$14,075.2 100.0 $15,068.6 100.0
Gross margin:
New vehicle $680.8 8.2 $773.4 8.4
Used vehicle 305.9 11.0 318.3 11.4
Parts and service 745.4 43.2 711.7 42.7
F&I 342.3 100.0 316.5 100.0
Other 54.3 6.1 68.1 6.5
2,128.7 15.1 2,188.0 14.5
S,G&A - Store 1,461.3 10.4 1,437.7 9.5
Store performance $667.4 4.7 $750.3 5.0
Retail vehicle sales:
New 317,000 366,000
Used 184,000 186,000
501,000 552,000
Gross margin per vehicle retailed:
New $2,148 $2,113
Used $1,663 $1,711
F&I $683 $573
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SOURCE AutoNation, Inc.
CONTACT: Oscar Suris of AutoNation, +1-954-769-3576, or
suriso@autonation.com/