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AutoNation Reports Sixth Consecutive All-Time Record Quarter

Oct. 21, 2021
- Third quarter 2021 GAAP EPS from continuing operations was an all-time record $5.12, an increase of 150% compared to third quarter 2020 GAAP EPS from continuing operations of $2.05, and an increase of 115% compared to third quarter 2020 adjusted EPS from continuing operations of $2.38
- There were no adjustments in the third quarter of 2021
- Third quarter 2021 same store revenue was $6.4 billion, an increase of 18% compared to the same period a year ago, as well as compared to the third quarter of 2019
- Third quarter 2021 same store gross profit increased 29% compared to the same period a year ago and increased 45% compared to the third quarter of 2019
- Third quarter 2021 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
- AutoNation announces agreement to acquire Priority 1 Automotive Group, representing approximately $420 million in annual revenue
- During the third quarter of 2021, AutoNation repurchased 7.9 million shares of common stock or 11% of shares outstanding for an aggregate purchase price of $879 million.
- AutoNation today announced that the Board of Directors authorized the repurchase of up to an additional $1 billion of AutoNation common stock

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.

 

 

Cision 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.

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