Enhanced Investments - Financial Portal

AutoNation Reports Third Quarter 2019 Results

Published: 2019-10-29 11:10:00 ET

FORT LAUDERDALE, Fla., Oct. 29, 2019 /PRNewswire/ -- AutoNation, Inc. (NYSE: AN), America's largest automotive retailer, today reported same-store third quarter 2019 revenue of $5.4 billion, an increase of 3% compared to the same period a year ago. Same-store third quarter 2019 gross profit totaled $877 million, an increase of 5% compared to the year-ago period, driven by growth in Customer Financial Services, Customer Care, and Used Vehicle gross profit. Same-store Customer Financial Services gross profit per vehicle retailed was an all-time record of $1,939, up $150 or 8% compared to the year-ago period. Same-store Customer Care gross profit was $403 million, an increase of 6% compared to the year-ago-period. Same-store used vehicle gross profit was $92 million, an increase of 3% compared to the year-ago-period.

Third quarter 2019 net income from continuing operations was $100 million, or $1.11 per share, which included previously announced severance and related expenses of $10 million after-tax, or $0.11 per share. Third quarter 2018 net income from continuing operations totaled $112 million, or $1.24 per share. Net gains from store and property divestitures in the third quarter of 2019 were $4 million after-tax, or $0.04 per share, compared to $13 million after-tax, or $0.15 per share, in the third quarter of 2018.

Segment Results Segment results(1) for the third quarter 2019 were as follows:

Third Quarter 2019 Segment Results

Domestic - Domestic segment income(2) was $70 million compared to year-ago segment income of $67 million, an increase of 5%.

Import - Import segment income(2) was $87 million compared to year-ago segment income of $85 million, an increase of 2%.

Premium Luxury - Premium Luxury segment income(2) was $89 million compared to year-ago segment income of $77 million, an increase of 16%.

For the nine-month period ended September 30, 2019, AutoNation reported net income from continuing operations of $293 million, or $3.24 per share, compared to net income from continuing operations of $303 million, or $3.31 per share, for the same period in the prior year. AutoNation's revenue for the nine-month period ended September 30, 2019, totaled $15.8 billion, down 1% compared to $16.0 billion for the same period in the prior year.

The third quarter conference call may be accessed by telephone at (866) 211-3176 (Conference ID: 7459787) at 11:00 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 2:00 p.m. Eastern Time on October 29, 2019, through November 19, 2019, by calling (800) 585-8367 (Conference ID: 7459787).

About AutoNation, Inc.AutoNation, America's largest automotive retailer, is transforming the automotive industry through its bold leadership, innovation, and comprehensive brand extensions. As of September 30, 2019, AutoNation owned and operated over 325 locations from coast to coast. AutoNation has sold over 12 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. Launched in 2015, AutoNation's Drive Pink initiative, which has raised over $20 million, is committed to drive out cancer, create awareness, and support critical research. AutoNation continues to be a proud supporter of the Breast Cancer Research Foundation and other cancer-related charities.

Please visit www.autonation.com, investors.autonation.com, www.twitter.com/CEOCherylMiller, 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.

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," "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 our brand extension strategies, as well as statements regarding our expectations for the future performance of our business 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 interest rates, fuel prices, and tariffs; new and used vehicle margins; the success and financial viability and the incentive and marketing programs of vehicle manufacturers and distributors with which we hold franchises; our ability to implement successfully our strategic initiatives, partnerships, and investments, including our brand extension strategies; our ability to identify, acquire, and build out suitable locations in a timely manner; our ability to maintain and enhance our retail brands and reputation and to attract consumers to our own digital channels; our ability to integrate successfully acquired and awarded franchises and to attain planned sales volumes within our expected time frames; restrictions imposed by vehicle manufacturers and our ability to obtain manufacturer approval for acquisitions; 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.

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SOURCE AutoNation, Inc.

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