FORT LAUDERDALE, Fla., April 24, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- AutoNation, Inc.
(NYSE: AN), America's largest automotive retailer, today reported 2008 first
quarter net income from continuing operations of $56 million or $0.31 per
share, compared to year-ago net income from continuing operations of $83
million or $0.39 per share. Results for the first quarter of 2008 reflected a
decline in vehicle retail sales, especially in AutoNation's key markets in
California, Florida, Nevada and Arizona where the housing crisis has
significantly impacted the automotive retail business. First quarter 2008
results also were impacted by lower gross profit per new and used vehicle
sold, partially offset by continued share repurchases. Prior year results
benefited from favorable tax adjustments of $0.02 per share.
First quarter 2008 revenue totaled $4.0 billion, compared to $4.3 billion
in the year-ago period, driven primarily by lower vehicle sales. In the first
quarter, industry new vehicle U.S. retail sales declined approximately 11%,
according to CNW Research. AutoNation new vehicle unit sales declined 8%.
Industry new vehicle retail sales for California, Florida, Nevada and Arizona
were off approximately 15% compared to last year, based on CNW Research data.
AutoNation's decline for new vehicle unit sales in those markets was 11%.
Together, California, Florida, Nevada and Arizona represent approximately 60%
of the Company's new vehicle business and approximately 25% of the industry
retail new vehicles sold in the U.S.
Commenting on the first quarter, Mike Jackson, Chairman and Chief
Executive Officer, said, "In the first quarter we continued to experience a
challenging economic environment for new vehicle sales, particularly in our
key markets of California, Florida, Nevada and Arizona where the housing
crisis has clearly impacted overall economic activity and consumer demand for
new vehicles." Mr. Jackson also noted, "We expect to continue to see a
challenging automotive retail market as long as the current economic
difficulties persist. However, AutoNation continues to have confidence in the
long-term health of California, Florida, Nevada and Arizona."
The first quarter conference call may be accessed at 11:00 a.m. Eastern
Time today by phone at 888-769-8515 or via the Internet (audio webcast) at
http://www.AutoNation.com by clicking on the "About Us" link then clicking on
"Investors" and then "Webcasts." A playback of the conference call will be
available after 2:30 p.m. Eastern Time April 24, 2008 through May 1, 2008 by
calling 800-463-4964.
About AutoNation, Inc.
AutoNation, Inc., headquartered in Fort Lauderdale, Fla., is America's
largest automotive retailer. AutoNation owns and operates 321 new vehicle
franchises in 15 states. For additional information, please visit
http://corp.AutoNation.com or www.AutoNation.com, where more than 80,000
vehicles are available for sale along with AutoNation's E-Vehicle program.
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 long-term growth targets.
NON-GAAP FINANCIAL MEASURES
The attached financial tables contain certain non-GAAP financial measures
as defined under SEC rules, such as net income and diluted earnings per share
from continuing operations, adjusted to exclude certain items disclosed in the
attached financial tables. As required by SEC rules, the Company has provided
reconciliations of these measures to the most directly comparable GAAP
measures, which are set forth in the attachments to this release. The Company
believes that each of the foregoing non-GAAP financial measures improves the
transparency of the Company's disclosure, provides a meaningful presentation
of the Company's results from its core business operations excluding the
impact of items not related to the Company's ongoing core business operations,
and improves the period-to-period comparability of the Company's results from
its core business operations.
AUTONATION, INC.
UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENTS
($ in millions, except per share data)
Three Months Ended March 31,
2008 2007
Revenue:
New vehicle $2,198.8 $2,423.5
Used vehicle 983.4 1,068.3
Parts and service 654.6 644.7
Finance and insurance, net 145.0 146.3
Other 17.6 17.1
Total revenue 3,999.4 4,299.9
Cost of sales:
New vehicle 2,052.8 2,246.6
Used vehicle 899.3 965.5
Parts and service 370.6 363.3
Other 7.5 6.7
Total cost of sales 3,330.2 3,582.1
Gross profit 669.2 717.8
Selling, general and
administrative expenses 498.3 511.2
Depreciation and amortization 23.5 20.9
Other expenses (income), net 0.3 -
Operating income 147.1 185.7
Floorplan interest expense (25.3) (31.7)
Other interest expense (26.8) (26.4)
Interest income 0.5 0.9
Other gains (losses), net (1.8) 0.1
Income from continuing
operations before income taxes 93.7 128.6
Provision for income taxes 38.0 46.1
Net income from continuing
operations 55.7 82.5
Loss from discontinued
operations, net of income
taxes (5.0) (4.9)
Net income $50.7 $77.6
Diluted earnings (loss) per share:
Continuing operations $0.31 $0.39
Discontinued operations $(0.03) $(0.02)
Net income $0.28 $0.37
Weighted average common shares
outstanding 180.6 210.7
Common shares outstanding, net
of treasury stock, at March 31 178.5 209.7
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions, except per vehicle data)
Operating Highlights Three Months Ended March 31,
$ %
2008 2007 Variance Variance
Revenue:
New vehicle $2,198.8 $2,423.5 $(224.7) (9.3)
Retail used vehicle 816.7 862.2 (45.5) (5.3)
Wholesale 166.7 206.1 (39.4) (19.1)
Used vehicle 983.4 1,068.3 (84.9) (7.9)
Parts and service 654.6 644.7 9.9 1.5
Finance and insurance, net 145.0 146.3 (1.3) (0.9)
Other 17.6 17.1 0.5
Total revenue $3,999.4 $4,299.9 $(300.5) (7.0)
Gross profit:
New vehicle $146.0 $176.9 $(30.9) (17.5)
Retail used vehicle 84.5 100.0 (15.5) (15.5)
Wholesale (0.4) 2.8 (3.2)
Used vehicle 84.1 102.8 (18.7) (18.2)
Parts and service 284.0 281.4 2.6 0.9
Finance and insurance 145.0 146.3 (1.3) (0.9)
Other 10.1 10.4 (0.3)
Total gross profit 669.2 717.8 (48.6) (6.8)
Selling, general and
administrative expenses 498.3 511.2 12.9 2.5
Depreciation and amortization 23.5 20.9 (2.6)
Other expenses (income), net 0.3 - (0.3)
Operating income 147.1 185.7 (38.6) (20.8)
Floorplan interest expense (25.3) (31.7) 6.4
Other interest expense (26.8) (26.4) (0.4)
Interest income 0.5 0.9 (0.4)
Other gains (losses), net (1.8) 0.1 (1.9)
Income from continuing
operations before income
taxes $93.7 $128.6 $(34.9) (27.1)
Retail vehicle unit sales:
New 71,673 78,114 (6,441) (8.2)
Used 50,863 52,889 (2,026) (3.8)
122,536 131,003 (8,467) (6.5)
Revenue per vehicle retailed:
New $30,678 $31,025 $(347) (1.1)
Used $16,057 $16,302 $(245) (1.5)
Gross profit per vehicle
retailed:
New $2,037 $2,265 $(228) (10.1)
Used $1,661 $1,891 $(230) (12.2)
Finance and insurance $1,183 $1,117 $66 5.9
Operating Percentages Three Months Ended March 31,
% 2008 % 2007
Revenue mix percentages:
New vehicle 55.0 56.4
Used vehicle 24.6 24.8
Parts and service 16.4 15.0
Finance and insurance, net 3.6 3.4
Other 0.4 0.4
100.0 100.0
Gross profit mix percentages:
New vehicle 21.8 24.6
Used vehicle 12.6 14.3
Parts and service 42.4 39.2
Finance and insurance 21.7 20.4
Other 1.5 1.5
100.0 100.0
Operating items as a
percentage of revenue:
Gross profit:
New vehicle 6.6 7.3
Used vehicle - retail 10.3 11.6
Parts and service 43.4 43.6
Total 16.7 16.7
Selling, general and
administrative expenses 12.5 11.9
Operating income 3.7 4.3
Operating items as a
percentage of total gross
profit:
Selling, general and
administrative expenses 74.5 71.2
Operating income 22.0 25.9
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA, Continued
($ in millions, except per share data)
Capital Expenditures / Stock
Repurchases Three Months Ended March 31,
2008 2007
Capital expenditures $23.5 $42.3
Acquisitions $29.4 $-
Proceeds from exercises of
stock options $1.0 $76.1
Stock repurchases:
Aggregate purchase price $27.8 $50.3
Shares repurchased (in
millions) 1.9 2.3
Floorplan Assistance and
Expense Three Months Ended March 31,
2008 2007 Variance
Floorplan assistance earned
(included in cost of sales) $21.0 $24.1 $(3.1)
Floorplan interest expense (25.3) (31.7) 6.4
Net inventory carrying cost $(4.3) $(7.6) $3.3
Balance Sheet and Other Highlights
March 31, December 31, March 31,
2008 2007 2007
Cash and cash equivalents $34.4 $33.0 $44.1
Inventory $2,377.1 $2,285.6 $2,191.8
Total floorplan notes
payable $2,200.3 $2,143.7 $1,990.8
Non-vehicle debt $1,698.6 $1,775.8 $1,374.5
Equity $3,501.0 $3,473.5 $3,830.7
New days supply (industry
standard of selling
days, including fleet) 57 days 52 days 52 days
Used days supply (trailing
30 days) 40 days 44 days 38 days
Brand Mix - New Vehicle Revenue %
Three Months Ended March 31,
% 2008 % 2007
Detroit 3:
Ford, Lincoln-Mercury 13.8 14.7
Chevrolet, Pontiac, Buick, Cadillac, GMC 13.0 13.8
Chrysler, Jeep, Dodge 6.2 6.6
Detroit 3 total 33.0 35.1
Import Premium Luxury:
Mercedes 11.9 12.2
BMW 6.4 6.1
Lexus 4.1 4.0
Other premium luxury (Land Rover, Porsche) 2.8 3.0
Premium Luxury total 25.2 25.3
Volume Imports:
Honda 9.6 9.1
Toyota 16.2 14.8
Nissan 10.0 9.7
Other imports 6.0 6.0
Import total 41.8 39.6
100.0 100.0
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA, Continued
($ in millions, except per share data)
Comparable Basis Reconciliations*
Three Months Ended March 31,
Diluted Earnings
Net Income Per Share
2008 2007 2008 2007
As reported $50.7 $77.6 $0.28 $0.37
Discontinued operations, net of
income taxes 5.0 4.9 $0.03 $0.02
From continuing operations, as
reported 55.7 82.5 $0.31 $0.39
Income tax adjustments - (5.1) $- $(0.02)
Adjusted $55.7 $77.4 $0.31 $0.37
* Please refer to the "Non-GAAP Financial Measures" section of the
Press Release.
Business Assumptions Impacting Long-term Average EPS Growth Target of 10%
to 12% Per Year:
U.S. light vehicle annual unit
sales assumes recovery in key markets
Continued opportunistic share repurchase, capital expenditures
redeployment of cash flow and acquisitions
Targeted return on incremental
invested capital approximately 15% after-tax
AUTONATION, INC.
UNAUDITED SAME STORE DATA
($ in millions, except per vehicle data)
Operating Highlights Three Months Ended March 31,
$ %
2008 2007 Variance Variance
Revenue:
New vehicle $2,188.2 $2,423.5 $(235.3) (9.7)
Retail used vehicle 811.7 862.2 (50.5) (5.9)
Wholesale 165.1 205.5 (40.4) (19.7)
Used vehicle 976.8 1,067.7 (90.9) (8.5)
Parts and service 649.9 644.7 5.2 0.8
Finance and insurance, net 144.4 146.3 (1.9) (1.3)
Other 6.5 7.0 (0.5) (7.1)
Total revenue $3,965.8 $4,289.2 $(323.4) (7.5)
Gross profit:
New vehicle $145.1 $176.8 $(31.7) (17.9)
Retail used vehicle 83.9 100.0 (16.1) (16.1)
Wholesale (0.8) 2.3 (3.1)
Used vehicle 83.1 102.3 (19.2) (18.8)
Parts and service 281.4 280.8 0.6 0.2
Finance and insurance 144.4 146.3 (1.9) (1.3)
Other 6.4 6.7 (0.3)
Total gross profit $660.4 $712.9 $(52.5) (7.4)
Retail vehicle unit sales:
New 71,395 78,114 (6,719) (8.6)
Used 50,616 52,889 (2,273) (4.3)
122,011 131,003 (8,992) (6.9)
Revenue per vehicle retailed:
New $30,649 $31,025 $(376) (1.2)
Used $16,036 $16,302 $(266) (1.6)
Gross profit per vehicle
retailed:
New $2,032 $2,263 $(231) (10.2)
Used $1,658 $1,891 $(233) (12.3)
Finance and insurance $1,183 $1,117 $66 5.9
Three Months Ended
Operating Percentages March 31,
% 2008 % 2007
Revenue mix percentages:
New vehicle 55.2 56.5
Used vehicle 24.6 24.9
Parts and service 16.4 15.0
Finance and insurance, net 3.6 3.4
Other 0.2 0.2
100.0 100.0
Gross profit mix percentages:
New vehicle 22.0 24.8
Used vehicle 12.6 14.3
Parts and service 42.6 39.4
Finance and insurance 21.9 20.5
Other 0.9 1.0
100.0 100.0
Operating items as a
percentage of revenue:
Gross Profit:
New vehicle 6.6 7.3
Used vehicle - retail 10.3 11.6
Parts and service 43.3 43.6
Total 16.7 16.6
SOURCE AutoNation, Inc.
http://www.AutoNation.com