Q4 EPS Beats Consensus Estimate by 16%
New & Used, Parts & Service, F&I Drive Same-store Sales Growth of 11%
Company Affirms High End of Full-year EPS Outlook of $0.98 to $1.03
FORT LAUDERDALE, Fla., Feb. 7 /PRNewswire-FirstCall/ --
AutoNation, Inc. (NYSE: AN), America's largest retailer of new and used
vehicles, today announced it earned record fourth-quarter income before
charges of $0.22 per share, or $72.2 million, that exceeded by 29% year-ago
earnings of $0.17 per share, or $61.2 million, before one-time items. The
$0.22 per share in the fourth quarter also exceeded the analysts' consensus
estimate of $0.19 per share by 16%.
The results came on record fourth-quarter revenue of $5.1 billion, an
increase of 10% from year-ago revenue of $4.7 billion. Before one-time items,
the Company also generated record fourth-quarter earnings before interest,
taxes, depreciation and amortization (EBITDA) of $169.7 million, an increase
of 25% from year-ago EBITDA of $135.6 million.
Commenting on the quarter, Mike Jackson, AutoNation's Chief Executive
Officer, said: "We'll remember this quarter for the courageous way auto
manufacturers used bold incentives on new vehicles to get the country rolling
again and for the way our stores responded by delivering record revenue,
record earnings and record cash flow before one-time items. We also saw our
total same-store revenue grow by 11%."
The Company said a 13% increase for new vehicles, a 12% increase for used
vehicles, a 28% increase for finance and insurance products, and a 5% increase
for parts and service drove same-store revenue growth. The higher-margin
areas of used vehicles, finance and insurance, and parts and service also
accounted for 67% of the Company's gross margin during the quarter.
Jackson added: "Even as we sold more new vehicles, our stores executed
strategic initiatives that spread best practices, grew the higher-margin areas
of our business and strengthened us as a specialty retailer."
Charges taken during the fourth quarter included:
- A previously announced non-cash, pre-tax charge of $85.8 million ($52.3 million, after tax, or $0.16 per share) to increase reserves for auto loans and to cover costs from exiting that business. AutoNation's
franchised dealerships continue to offer consumer auto loans through
third parties.
- A $20 million charge ($12.7 million, after tax, or $0.04 per share)
included in net income from discontinued operations. The charge
relates to the assumption of certain obligations of ANC Rental Corp.,
the Company's former vehicle rental business that recently declared
bankruptcy. This and other actions have reduced the Company's
remaining potential financial exposure related to ANC Rental to an
estimated pre-tax range of $25 million to $60 million.
Including the above charges, AutoNation reported fourth-quarter net income
of $6.9 million, or $0.02 per share, on revenue of $5.1 billion compared to
net income a year ago of $73.7 million, or $0.21 per share, on revenue of
$4.7 billion. The earnings in the year-earlier period included $0.04 per
share of net gain from one-time items.
FULL-YEAR COMMENTS
Commenting on the Company's performance in 2001, Jackson said: "Entering
the year, many questioned how auto retailers would perform in an economy
facing a recession. At AutoNation, we generated same-store sales growth in
our higher-margin areas and met our earnings targets while redeploying
$708 million to pursue acquisitions, re-invest in our stores, repurchase our
shares and pay down debt."
Jackson said AutoNation's 2001 accomplishments included:
- Meeting or beating the consensus estimate of analysts in each of the
year's quarters.
- Record full-year earnings per share of $0.87, before one-time items.
Generating earnings before interest, taxes, depreciation and
amortization (EBITDA) of $587 million. Excluding one-time items,
AutoNation's EBITDA totaled a record $663 million.
- Repurchasing 27 million of its shares for $257 million, at an average
price of $9.41 per share, leaving a board-authorized amount as of
December 31, 2001 of $260 million for future repurchases.
- Reducing non-vehicle debt, net of cash, by $246 million or 32% to
$527 million since December 31, 2000.
- Completing the Company's first-ever senior note offering. In preparing
for the offer, AutoNation received an "investment grade" corporate debt
rating from Standard & Poor's, marking the first time such a rating has
been assigned to a public auto retailer.
Including the previously mentioned charges, the Company reported full-year
net income of $232.3 million, or $0.69 per share, on revenue of $20.0 billion
compared to net income in the prior year of $329.9 million, or $0.91 per
share, on revenue of $20.6 billion. Excluding charges and one-time items for
both full-year periods, AutoNation earned $290.8 million, or $0.87 per share,
versus $304.5 million, or $0.84 per share, in the prior year.
Looking ahead, Mr. Jackson said: "This January's new-vehicle market was a
pleasant surprise for the industry. AutoNation now anticipates it will
achieve full-year 2002 earnings at the high end of our previous guidance of
$0.98 to $1.03 per share. We also anticipate first-quarter earnings this year
in the range of $0.20 to $0.22 per share. "
AutoNation will discuss its fourth-quarter and full-year results, its
earnings outlook and supporting assumptions later this morning during an
11:00 a.m., Eastern Time, conference call. To listen to the call,
dial 888-276-9996 or listen via the audio webcast offered at
http://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 February 14, 2002. The
playback can be accessed by calling 800-475-6701 (access code 620143) 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. 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
http://www.autonation.com, where approximately 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 INCOME STATEMENTS
(In millions, except per share data)
Three Months Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
Revenue $5,145.9 $4,699.3 $19,989.3 $20,599.0
Cost of operations (1) 4,419.4 4,035.8 17,115.4 17,776.9
Gross margin 726.5 663.5 2,873.9 2,822.1
Selling, general and
administrative expenses 557.8 527.3 2,207.2 2,177.7
Depreciation 20.7 12.3 70.7 54.7
Amortization 20.4 20.4 81.2 79.1
Loan and lease origination
losses (income)(2) 82.7 (2.5) 89.6 6.0
Restructuring and impairment
charges (recoveries), net 0.5 (1.6) 4.5 (20.4)
Other gains - - (19.3) -
Operating income 44.4 107.6 440.0 525.0
Other interest expense, net (10.2) (8.9) (34.7) (33.4)
Other income (expense) (2.1) 19.3 (4.5) 33.4
Income from continuing
operations before income
taxes 32.1 118.0 400.8 525.0
Provision for income taxes 12.5 44.3 155.8 196.9
Net income from continuing
operations 19.6 73.7 245.0 328.1
Income (loss) from
discontinued operations,
net of income taxes (12.7) - (12.7) 1.8
Net income $ 6.9 $ 73.7 $ 232.3 $ 329.9
Diluted earnings per share:
Continuing operations $ 0.06 $ 0.21 $ 0.73 $ 0.91
Discontinued operations (0.04) - (0.04) -
Net income $ 0.02 $ 0.21 $ 0.69 $ 0.91
Weighted average common and
common equivalent shares
outstanding 326.1 355.7 335.2 361.4
Common shares outstanding 321.7 348.1 321.7 348.1
(1) Floorplan interest expense has been reclassified to cost of operations
all periods presented (see supplemental schedules).
(2) Loan and lease origination losses (income) have been presented separately
for all periods. Prior period amounts have been reclassified to conform to
current presentation.
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions, except gross margin per vehicle data)
Three Months Ended December 31,
2001 % 2000 %
Operating Highlights:
Revenue:
New vehicle $3,196.0 62.1 $2,832.2 60.3
Used vehicle 955.1 18.6 865.2 18.4
Parts and service 590.7 11.5 571.5 12.2
F&I 125.7 2.4 100.6 2.1
Other 278.4 5.4 329.8 7.0
$5,145.9 100.0 $4,699.3 100.0
Gross margin: (1)
New vehicle $ 229.0 7.2 $ 198.2 7.0
Used vehicle 100.3 10.5 97.4 11.3
Parts and service 255.3 43.2 246.7 43.2
F&I 125.7 100.0 100.6 100.0
Other 16.2 5.8 20.6 6.2
726.5 14.1 663.5 14.1
S,G&A - Store 528.5 10.3 491.6 10.5
Store performance 198.0 3.8 171.9 3.7
S,G&A - Corporate 29.3 0.6 35.7 0.8
Depreciation 20.7 0.4 12.3 0.3
Amortization 20.4 0.4 20.4 0.4
Loan and lease origination losses
(income)(2) 82.7 1.6 (2.5) (0.1)
Restructuring and impairment
charges (recoveries), net 0.5 0.0 (1.6) (0.0)
Other gains - - - -
Operating income $ 44.4 0.9 $ 107.6 2.3
Retail vehicle sales:
New 118,000 107,000
Used 64,000 56,000
182,000 163,000
Gross margin per vehicle retailed:
New $ 1,941 $ 1,852
Used $ 1,567 $ 1,739
F&I $ 691 $ 617
EBITDA $ 83.4 $ 159.6
EBITDA, excluding one-time items $ 169.7 $ 135.6
Capital expenditures $77.3 $55.9
(1) Floorplan interest expense has been reclassified to cost of operations
for all periods presented.
(2) Loan and lease origination losses (income) have been presented separately
for all periods. Prior period amounts have been reclassified to conform to
current presentation.
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions, except gross margin per vehicle data)
Year Ended December 31,
2001 % 2000 %
Operating Highlights:
Revenue:
New vehicle $12,000.0 60.0 $12,489.3 60.6
Used vehicle 3,883.2 19.4 3,860.2 18.7
Parts and service 2,404.9 12.0 2,334.9 11.3
F&I 489.6 2.4 431.8 2.1
Other 1,211.6 6.2 1,482.8 7.3
$19,989.3 100.0 $20,599.0 100.0
Gross margin: (1)
New vehicle $ 837.9 7.0 $ 857.4 6.9
Used vehicle 426.5 11.0 437.4 11.3
Parts and service 1,039.2 43.2 999.7 42.8
F&I 489.6 100.0 431.8 100.0
Other 80.7 6.7 95.8 6.5
2,873.9 14.4 2,822.1 13.7
S,G&A - Store 2,072.0 10.4 2,021.6 9.8
Store performance 801.9 4.0 800.5 3.9
S,G&A - Corporate 135.2 0.7 156.1 0.8
Depreciation 70.7 0.4 54.7 0.3
Amortization 81.2 0.4 79.1 0.4
Loan and lease origination losses
(income) (2) 89.6 0.4 6.0 0.0
Restructuring and impairment
charges (recoveries), net 4.5 0.0 (20.4) (0.1)
Other gains (19.3) (0.1) - -
Operating income $ 440.0 2.2 $ 525.0 2.5
Retail vehicle sales:
New 454,000 489,000
Used 258,000 255,000
712,000 744,000
Gross margin per vehicle retailed:
New $1,846 $1,753
Used $1,653 $1,715
F&I $688 $580
EBITDA $587.4 $692.2
EBITDA, excluding one-time items $662.5 $643.5
Capital expenditures $163.6 $138.7
(1) Floorplan interest expense has been reclassified to cost of operations
all periods presented.
(2) Loan and lease origination losses (income) have been presented separately
for all periods. Prior period amounts have been reclassified to conform to
current presentation.
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA, continued
($ in millions)
Three Months Ended December 31,
2001 % 2000 %
New vehicle gross margin,
before floorplan $215.4 6.8 $200.6 7.1
Floorplan assistance 33.2 1.0 50.4 1.8
Floorplan interest expense (19.6) (0.6) (52.8) (1.9)
New vehicle gross margin,
as presented $229.0 7.2 $198.2 7.0
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA, continued
($ in millions)
Year Ended December 31,
2001 % 2000 %
New vehicle gross margin,
before floorplan $823.8 6.9 $862.0 6.9
Floorplan assistance 140.8 1.2 194.0 1.6
Floorplan interest expense (126.7) (1.1) (198.6) (1.6)
New vehicle gross margin,
as presented $837.9 7.0 $857.4 6.9
Balance Sheet and Other
Highlights:
December 31, 2001 December 31, 2000
Cash and cash equivalents $128.1 $84.6
Inventory 2,178.5 2,774.4
Floorplan notes payable 1,900.7 2,454.0
Non-vehicle debt 655.2 857.2
Equity 3,827.9 3,842.5
Days supply (trailing 30 days):
New 61 days 83 days
Used 35 days 43 days
Net Income from Continuing Operations
Three Months Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
As reported $19.6 73.7 $245.0 328.1
One-time items:
Auto loan business increased
reserves & exit costs 52.3 - 52.3 -
Gain on sale of outdoor media
business - (33.4) - (33.4)
Asset write-down - minority
equity investments - 21.9 - 21.9
Gain on sale of Republic
Services stock - (2.8) - (15.0)
Gain on sale of Flemington
dealer group - - (11.8) -
Other items, net 0.3 1.8 5.3 1.2
Excluding one-time items $72.2 61.2 $290.8 302.8
Diluted Earnings Per Share from
Continuing Operations
Three Months Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
As reported $0.06 0.21 $0.73 0.91
One-time items:
Auto loan business increased
reserves & exit costs 0.16 - 0.16 -
Gain on sale of outdoor
media business - (0.09) - (0.09)
Asset write-down - minority
equity investments - 0.06 - 0.06
Gain on sale of Republic
Services stock - (0.01) - (0.04)
Gain on sale of Flemington
dealer group - - (0.04) -
Other items, net - - 0.02
Excluding one-time items $0.22 0.17 $0.87 0.84
AUTONATION, INC.
UNAUDITED SAME STORE DATA
($ in millions, except gross margin per vehicle data)
Three Months Ended December 31,
2001 % 2000 %
Revenue:
New vehicle $3,089.3 61.7 $2,740.2 60.6
Used vehicle 927.0 18.5 827.3 18.3
Parts and service 577.3 11.6 551.8 12.2
F&I 121.5 2.4 95.3 2.1
Other 292.9 5.8 305.8 6.8
$5,008.0 100.0 $4,520.4 100.0
Gross margin: (1)
New vehicle $221.2 7.2 $192.8 7.0
Used vehicle 97.3 10.5 93.1 11.3
Parts and service 249.3 43.2 238.0 43.1
F&I 121.5 100.0 95.3 100.0
Other 10.6 3.6 19.3 6.3
699.9 14.0 638.5 14.1
S,G&A - Store 503.9 10.1 469.8 10.4
Store performance $196.0 3.9 $168.7 3.7
Retail vehicle sales:
New 114,000 103,000
Used 62,000 54,000
176,000 157,000
Gross margin per vehicle
retailed:
New $1,940 $1,872
Used $1,569 $1,724
F&I $ 690 $ 607
(1) Floorplan interest expense has been reclassified to cost of operations
for all periods presented.
AUTONATION, INC.
UNAUDITED SAME STORE DATA
($ in millions, except gross margin per vehicle data)
Year Ended December 31,
2001 % 2000 %
Revenue:
New vehicle $11,441.0 59.9 $11,974.5 61.2
Used vehicle 3,701.1 19.4 3,625.8 18.5
Parts and service 2,305.7 12.1 2,224.2 11.4
F&I 463.8 2.4 411.8 2.1
Other 1,178.3 6.2 1,342.7 6.8
$19,089.9 100.0 $19,579.0 100.0
Gross margin: (1)
New vehicle $800.4 7.0 $827.9 6.9
Used vehicle 407.5 11.0 410.5 11.3
Parts and service 996.4 43.2 951.4 42.8
F&I 463.8 100.0 411.8 100.0
Other 67.1 5.7 73.1 5.4
2,735.2 14.3 2,674.7 13.7
S,G&A - Store 1,963.1 10.3 1,909.8 9.8
Store performance $772.1 4.0 $764.9 3.9
Retail vehicle sales:
New 431,000 470,000
Used 246,000 239,000
677,000 709,000
Gross margin per vehicle
retailed:
New $1,857 $1,761
Used $1,657 $1,718
F&I $685 $581
(1) Floorplan interest expense has been reclassified to cost of operations
for all periods presented.
SOURCE AutoNation, Inc.
CONTACT: Oscar Suris of AutoNation, +1-954-769-3576, or
suriso@autonation.com/