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FORT LAUDERDALE, Fla., Feb. 13, 2024 /PRNewswire/ -- AutoNation, Inc. (NYSE: AN) today reported fourth quarter 2023 GAAP EPS of $5.04 and adjusted EPS of $5.02. Fourth quarter 2023 revenue was $6.8 billion, an increase of 1% compared to the same period a year ago. Reconciliations of non-GAAP financial measures are included in the attached financial tables.
"Our results demonstrate the strength of our business model. We enjoyed excellent new vehicle unit sales and competed well in a dynamic used vehicle market, which together provided a platform from which we delivered outstanding customer financial services performance and superior after-sales growth. This performance was underpinned by our Associates' focus on delivering an outstanding customer experience," said Mike Manley, AutoNation's Chief Executive Officer. "While 2024 will reflect a continued normalization of vehicle supply and demand dynamics, we are excited to move forward, confident in our strong balance sheet, and laser-focused on executing our operating plan. We will continue to be a strong cash generator and allocate capital in a prudent manner to maximize shareholder returns."
Operational SummaryFourth quarter 2023 compared to the year-ago period:
Selected GAAP Financial Data | |||
($ in millions, except per share data) | |||
Three Months Ended Dec 31, | |||
2023 | 2022 | YoY | |
Revenue | $ 6,767.4 | $ 6,697.0 | 1 % |
Gross Profit | $ 1,215.2 | $ 1,281.9 | -5 % |
Operating Income | $ 349.9 | $ 424.9 | -18 % |
Net Income | $ 216.2 | $ 286.4 | -25 % |
Diluted EPS | $ 5.04 | $ 5.72 | -12 % |
New Vehicle Retail Unit Sales | 64,748 | 60,074 | 8 % |
Used Vehicle Retail Unit Sales | 65,151 | 67,608 | -4 % |
Selected Non-GAAP Financial Data | |||
($ in millions, except per share data) | |||
Three Months Ended Dec 31, | |||
2023 | 2022 | YoY | |
Adjusted Operating Income | $ 367.7 | $ 473.9 | -22 % |
Adjusted Net Income | $ 215.5 | $ 319.2 | -32 % |
Adjusted Diluted EPS | $ 5.02 | $ 6.37 | -21 % |
Full Year 2023 compared to the year-ago period:
Selected GAAP Financial Data | |||
($ in millions, except per share data) | |||
Twelve Months Ended Dec 31, | |||
2023 | 2022 | YoY | |
Revenue | $ 26,948.9 | $ 26,985.0 | 0 % |
Gross Profit | $ 5,131.5 | $ 5,265.3 | -3 % |
Operating Income | $ 1,651.9 | $ 2,024.5 | -18 % |
Net Income | $ 1,021.1 | $ 1,377.4 | -26 % |
Diluted EPS | $ 22.74 | $ 24.29 | -6 % |
New Vehicle Retail Unit Sales | 244,546 | 229,971 | 6 % |
Used Vehicle Retail Unit Sales | 274,019 | 299,806 | -9 % |
Selected Non-GAAP Financial Data | |||
($ in millions, except per share data) | |||
Twelve Months Ended Dec 31, | |||
2023 | 2022 | YoY | |
Adjusted Operating Income | $ 1,692.5 | $ 2,026.0 | -16 % |
Adjusted Net Income | $ 1,032.8 | $ 1,393.2 | -26 % |
Adjusted Diluted EPS | $ 23.00 | $ 24.57 | -6 % |
Segment Results
Segment results(1) for the fourth quarter and full year 2023 were as follows:
Fourth Quarter 2023 Segment Results
Full Year 2023 Segment Results
Capital Allocation, Liquidity, and LeverageDuring the quarter, AutoNation repurchased 1.15 million shares of common stock (3% of shares outstanding at start of quarter) for an aggregate purchase price of $151 million. As of February 9, 2024, AutoNation had approximately $320 million remaining under its current Board authorization for share repurchases. For the full year 2023, AutoNation repurchased 6.4 million shares for $864 million, reducing shares outstanding by 13% during the year and more than 50% since the end of 2020. In addition, during 2023 the Company made operational and expansion investments, including capital expenditures of $410 million and acquisitions of $271 million.
As of December 31, 2023, AutoNation had $1.5 billion of liquidity, including $61 million in cash and $1.46 billion of availability under its revolving credit facility, net of commercial paper borrowings. The Company's covenant leverage ratio was 2.19x at quarter-end and the Company had $4.0 billion of non-vehicle debt outstanding.
The fourth quarter conference call may be accessed by telephone at 833-470-1428 (Conference ID: 117266) at 9:00 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 following the call under "Events & Presentations." A playback of the conference call will be available after 12:00 p.m. Eastern Time on February 13, 2024, through March 5, 2024, by calling 866-813-9403 (Conference ID: 185101). 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; the Import segment is comprised of stores that sell vehicles manufactured primarily by Toyota, Honda, Hyundai, Subaru, and Nissan; 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 AutoNation's reportable segments and is defined as operating income less floorplan interest expense. |
About AutoNation, Inc.AutoNation is one of the largest automotive retailers in the United States, offering innovative products, exceptional services, and comprehensive solutions, empowering our customers to make the best decisions for their ever-changing needs. With a network of dealerships nationwide strengthened by a recognized brand, we offer a wide variety of new and used vehicles, customer financing, and auto parts, and provide expert maintenance and repair services. Through our DRV PNK initiative, we have raised over $40 million for cancer-related causes, our commitment to making a positive difference in the lives of our Associates, customers, and the communities it serves.
Please visit www.autonation.com, investors.autonation.com, and www.x.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 STATEMENTSThis 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, and investments, including AutoNation USA, AutoNation Finance, and AutoNation Mobile Service, statements regarding our investments in digital and online capabilities and mobility solutions, 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: our ability to implement successfully our strategic acquisitions, initiatives, partnerships, and investments; 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 acquire and integrate successfully new franchises; restrictions imposed by vehicle manufacturers and our ability to obtain manufacturer approval for franchise acquisitions; economic conditions, including changes in unemployment, interest, and/or inflation rates, consumer demand, fuel prices, and tariffs; supply chain disruptions and inventory availability; new and used vehicle margins; our ability to attain planned sales volumes within our expected time frames; 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; 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 INCOME | |||||||||
(In millions, except per share data) | |||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||
2023 | 2022 | 2023 | 2022 | ||||||
Revenue: | |||||||||
New vehicle | $ | 3,366.9 | $ | 3,147.5 | $ | 12,767.4 | $ | 11,754.4 | |
Used vehicle | 1,905.8 | 2,167.3 | 8,198.5 | 9,661.8 | |||||
Parts and service | 1,141.2 | 1,028.3 | 4,533.7 | 4,100.6 | |||||
Finance and insurance, net | 347.4 | 345.1 | 1,418.8 | 1,437.3 | |||||
Other | 6.1 | 8.8 | 30.5 | 30.9 | |||||
Total revenue | 6,767.4 | 6,697.0 | 26,948.9 | 26,985.0 | |||||
Cost of sales: | |||||||||
New vehicle | 3,130.4 | 2,809.1 | 11,705.6 | 10,387.8 | |||||
Used vehicle | 1,814.3 | 2,049.3 | 7,690.5 | 9,108.7 | |||||
Parts and service | 601.3 | 549.4 | 2,394.4 | 2,200.3 | |||||
Other | 6.2 | 7.3 | 26.9 | 22.9 | |||||
Total cost of sales | 5,552.2 | 5,415.1 | 21,817.4 | 21,719.7 | |||||
Gross profit | 1,215.2 | 1,281.9 | 5,131.5 | 5,265.3 | |||||
Selling, general, and administrative expenses | 808.3 | 766.7 | 3,253.2 | 3,026.1 | |||||
Depreciation and amortization | 57.4 | 51.4 | 220.5 | 200.3 | |||||
Other (income) expense, net(1) | (0.4) | 38.9 | 5.9 | 14.4 | |||||
Operating income | 349.9 | 424.9 | 1,651.9 | 2,024.5 | |||||
Non-operating income (expense) items: | |||||||||
Floorplan interest expense | (46.5) | (19.7) | (144.7) | (41.4) | |||||
Other interest expense | (45.5) | (37.5) | (181.4) | (134.9) | |||||
Other income (loss), net(2) | 19.8 | 10.0 | 24.4 | (14.7) | |||||
Income from continuing operations before income taxes | 277.7 | 377.7 | 1,350.2 | 1,833.5 | |||||
Income tax provision | 61.5 | 91.3 | 330.0 | 455.8 | |||||
Net income from continuing operations | 216.2 | 286.4 | 1,020.2 | 1,377.7 | |||||
Income (loss) from discontinued operations, net of income taxes | - | - | 0.9 | (0.3) | |||||
Net income | $ | 216.2 | $ | 286.4 | $ | 1,021.1 | $ | 1,377.4 | |
Diluted earnings (loss) per share(3): | |||||||||
Continuing operations | $ | 5.04 | $ | 5.72 | $ | 22.72 | $ | 24.30 | |
Discontinued operations | $ | - | $ | - | $ | 0.02 | $ | (0.01) | |
Net income | $ | 5.04 | $ | 5.72 | $ | 22.74 | $ | 24.29 | |
Weighted average common shares outstanding | 42.9 | 50.1 | 44.9 | 56.7 | |||||
Common shares outstanding, net of treasury stock, at period end | 41.6 | 47.6 | 41.6 | 47.6 | |||||
(1) | Includes results of our finance company, including expected credit loss expense and gains on asset sales, as well as gains on business/property divestitures, gains on legal settlements, and asset impairments. | ||||||||
(2) | Includes gains (losses) related to changes in the cash surrender value of corporate-owned life insurance for deferred compensation plan participants, as well as gains on minority equity investments. | ||||||||
(3) | 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 December 31, | Twelve Months Ended December 31, | ||||||||||||||||
2023 | 2022 | $ Variance | % Variance | 2023 | 2022 | $ Variance | % Variance | |||||||||||
Revenue: | ||||||||||||||||||
New vehicle | $ | 3,366.9 | $ | 3,147.5 | $ | 219.4 | 7.0 | $ | 12,767.4 | $ | 11,754.4 | $ | 1,013.0 | 8.6 | ||||
Retail used vehicle | 1,781.1 | 2,013.4 | (232.3) | (11.5) | 7,639.5 | 9,020.9 | (1,381.4) | (15.3) | ||||||||||
Wholesale | 124.7 | 153.9 | (29.2) | (19.0) | 559.0 | 640.9 | (81.9) | (12.8) | ||||||||||
Used vehicle | 1,905.8 | 2,167.3 | (261.5) | (12.1) | 8,198.5 | 9,661.8 | (1,463.3) | (15.1) | ||||||||||
Finance and insurance, net | 347.4 | 345.1 | 2.3 | 0.7 | 1,418.8 | 1,437.3 | (18.5) | (1.3) | ||||||||||
Total variable operations | 5,620.1 | 5,659.9 | (39.8) | (0.7) | 22,384.7 | 22,853.5 | (468.8) | (2.1) | ||||||||||
Parts and service | 1,141.2 | 1,028.3 | 112.9 | 11.0 | 4,533.7 | 4,100.6 | 433.1 | 10.6 | ||||||||||
Other | 6.1 | 8.8 | (2.7) | 30.5 | 30.9 | (0.4) | ||||||||||||
Total revenue | $ | 6,767.4 | $ | 6,697.0 | $ | 70.4 | 1.1 | $ | 26,948.9 | $ | 26,985.0 | $ | (36.1) | (0.1) | ||||
Gross profit: | ||||||||||||||||||
New vehicle | $ | 236.5 | $ | 338.4 | $ | (101.9) | (30.1) | $ | 1,061.8 | $ | 1,366.6 | $ | (304.8) | (22.3) | ||||
Retail used vehicle | 94.8 | 124.9 | (30.1) | (24.1) | 493.1 | 538.3 | (45.2) | (8.4) | ||||||||||
Wholesale | (3.3) | (6.9) | 3.6 | 14.9 | 14.8 | 0.1 | ||||||||||||
Used vehicle | 91.5 | 118.0 | (26.5) | (22.5) | 508.0 | 553.1 | (45.1) | (8.2) | ||||||||||
Finance and insurance | 347.4 | 345.1 | 2.3 | 0.7 | 1,418.8 | 1,437.3 | (18.5) | (1.3) | ||||||||||
Total variable operations | 675.4 | 801.5 | (126.1) | (15.7) | 2,988.6 | 3,357.0 | (368.4) | (11.0) | ||||||||||
Parts and service | 539.9 | 478.9 | 61.0 | 12.7 | 2,139.3 | 1,900.3 | 239.0 | 12.6 | ||||||||||
Other | (0.1) | 1.5 | (1.6) | 3.6 | 8.0 | (4.4) | ||||||||||||
Total gross profit | 1,215.2 | 1,281.9 | (66.7) | (5.2) | 5,131.5 | 5,265.3 | (133.8) | (2.5) | ||||||||||
Selling, general, and administrative expenses | 808.3 | 766.7 | (41.6) | (5.4) | 3,253.2 | 3,026.1 | (227.1) | (7.5) | ||||||||||
Depreciation and amortization | 57.4 | 51.4 | (6.0) | 220.5 | 200.3 | (20.2) | ||||||||||||
Other (income) expense, net | (0.4) | 38.9 | 39.3 | 5.9 | 14.4 | 8.5 | ||||||||||||
Operating income | 349.9 | 424.9 | (75.0) | (17.7) | 1,651.9 | 2,024.5 | (372.6) | (18.4) | ||||||||||
Non-operating income (expense) items: | ||||||||||||||||||
Floorplan interest expense | (46.5) | (19.7) | (26.8) | (144.7) | (41.4) | (103.3) | ||||||||||||
Other interest expense | (45.5) | (37.5) | (8.0) | (181.4) | (134.9) | (46.5) | ||||||||||||
Other income (loss), net | 19.8 | 10.0 | 9.8 | 24.4 | (14.7) | 39.1 | ||||||||||||
Income from continuing operations before income taxes | $ | 277.7 | $ | 377.7 | $ | (100.0) | (26.5) | $ | 1,350.2 | $ | 1,833.5 | $ | (483.3) | (26.4) | ||||
Retail vehicle unit sales: | ||||||||||||||||||
New | 64,748 | 60,074 | 4,674 | 7.8 | 244,546 | 229,971 | 14,575 | 6.3 | ||||||||||
Used | 65,151 | 67,608 | (2,457) | (3.6) | 274,019 | 299,806 | (25,787) | (8.6) | ||||||||||
129,899 | 127,682 | 2,217 | 1.7 | 518,565 | 529,777 | (11,212) | (2.1) | |||||||||||
Revenue per vehicle retailed: | ||||||||||||||||||
New | $ | 52,000 | $ | 52,394 | $ | (394) | (0.8) | $ | 52,209 | $ | 51,113 | $ | 1,096 | 2.1 | ||||
Used | $ | 27,338 | $ | 29,780 | $ | (2,442) | (8.2) | $ | 27,879 | $ | 30,089 | $ | (2,210) | (7.3) | ||||
Gross profit per vehicle retailed: | ||||||||||||||||||
New | $ | 3,653 | $ | 5,633 | $ | (1,980) | (35.2) | $ | 4,342 | $ | 5,942 | $ | (1,600) | (26.9) | ||||
Used | $ | 1,455 | $ | 1,847 | $ | (392) | (21.2) | $ | 1,800 | $ | 1,795 | $ | 5 | 0.3 | ||||
Finance and insurance | $ | 2,674 | $ | 2,703 | $ | (29) | (1.1) | $ | 2,736 | $ | 2,713 | $ | 23 | 0.8 | ||||
Total variable operations(1) | $ | 5,225 | $ | 6,331 | $ | (1,106) | (17.5) | $ | 5,734 | $ | 6,309 | $ | (575) | (9.1) | ||||
Operating Percentages | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||
2023 ( %) | 2022 ( %) | 2023 ( %) | 2022 ( %) | |||||||||||||||
Revenue mix percentages: | ||||||||||||||||||
New vehicle | 49.8 | 47.0 | 47.4 | 43.6 | ||||||||||||||
Used vehicle | 28.2 | 32.4 | 30.4 | 35.8 | ||||||||||||||
Parts and service | 16.9 | 15.4 | 16.8 | 15.2 | ||||||||||||||
Finance and insurance, net | 5.1 | 5.2 | 5.3 | 5.3 | ||||||||||||||
Other | - | - | 0.1 | 0.1 | ||||||||||||||
100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||||
Gross profit mix percentages: | ||||||||||||||||||
New vehicle | 19.5 | 26.4 | 20.7 | 26.0 | ||||||||||||||
Used vehicle | 7.5 | 9.2 | 9.9 | 10.5 | ||||||||||||||
Parts and service | 44.4 | 37.4 | 41.7 | 36.1 | ||||||||||||||
Finance and insurance | 28.6 | 26.9 | 27.6 | 27.3 | ||||||||||||||
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 | 7.0 | 10.8 | 8.3 | 11.6 | ||||||||||||||
Used vehicle - retail | 5.3 | 6.2 | 6.5 | 6.0 | ||||||||||||||
Parts and service | 47.3 | 46.6 | 47.2 | 46.3 | ||||||||||||||
Total | 18.0 | 19.1 | 19.0 | 19.5 | ||||||||||||||
Selling, general, and administrative expenses | 11.9 | 11.4 | 12.1 | 11.2 | ||||||||||||||
Operating income | 5.2 | 6.3 | 6.1 | 7.5 | ||||||||||||||
Operating items as a percentage of total gross profit: | ||||||||||||||||||
Selling, general, and administrative expenses | 66.5 | 59.8 | 63.4 | 57.5 | ||||||||||||||
Operating income | 28.8 | 33.1 | 32.2 | 38.4 | ||||||||||||||
(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 December 31, | Twelve Months Ended December 31, | |||||||||||||||
2023 | 2022 | $ Variance | % Variance | 2023 | 2022 | $ Variance | % Variance | ||||||||||
Revenue: | |||||||||||||||||
Domestic | $ | 1,802.7 | $ | 1,879.4 | $ | (76.7) | (4.1) | $ | 7,573.2 | $ | 7,987.5 | $ | (414.3) | (5.2) | |||
Import | 2,016.7 | 1,891.3 | 125.4 | 6.6 | 7,880.9 | 7,690.3 | 190.6 | 2.5 | |||||||||
Premium luxury | 2,644.9 | 2,676.4 | (31.5) | (1.2) | 10,266.4 | 10,278.1 | (11.7) | (0.1) | |||||||||
Total | 6,464.3 | 6,447.1 | 17.2 | 0.3 | 25,720.5 | 25,955.9 | (235.4) | (0.9) | |||||||||
Corporate and other | 303.1 | 249.9 | 53.2 | 21.3 | 1,228.4 | 1,029.1 | 199.3 | 19.4 | |||||||||
Total consolidated revenue | $ | 6,767.4 | $ | 6,697.0 | $ | 70.4 | 1.1 | $ | 26,948.9 | $ | 26,985.0 | $ | (36.1) | (0.1) | |||
Segment income*: | |||||||||||||||||
Domestic | $ | 73.9 | $ | 120.1 | $ | (46.2) | (38.5) | $ | 415.4 | $ | 565.3 | $ | (149.9) | (26.5) | |||
Import | 136.9 | 175.2 | (38.3) | (21.9) | 635.0 | 734.2 | (99.2) | (13.5) | |||||||||
Premium luxury | 195.3 | 246.9 | (51.6) | (20.9) | 836.5 | 969.1 | (132.6) | (13.7) | |||||||||
Total | 406.1 | 542.2 | (136.1) | (25.1) | 1,886.9 | 2,268.6 | (381.7) | (16.8) | |||||||||
Corporate and other | (102.7) | (137.0) | 34.3 | (379.7) | (285.5) | (94.2) | |||||||||||
Add: Floorplan interest expense | 46.5 | 19.7 | 26.8 | 144.7 | 41.4 | 103.3 | |||||||||||
Operating income | $ | 349.9 | $ | 424.9 | $ | (75.0) | (17.7) | $ | 1,651.9 | $ | 2,024.5 | $ | (372.6) | (18.4) | |||
* Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense. | |||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||
2023 | 2022 | Variance | % Variance | 2023 | 2022 | Variance | % Variance | ||||||||||
Retail new vehicle unit sales: | |||||||||||||||||
Domestic | 16,361 | 16,391 | (30) | (0.2) | 67,471 | 66,375 | 1,096 | 1.7 | |||||||||
Import | 29,566 | 25,429 | 4,137 | 16.3 | 108,068 | 95,886 | 12,182 | 12.7 | |||||||||
Premium luxury | 18,821 | 18,254 | 567 | 3.1 | 69,007 | 67,710 | 1,297 | 1.9 | |||||||||
64,748 | 60,074 | 4,674 | 7.8 | 244,546 | 229,971 | 14,575 | 6.3 | ||||||||||
Retail used vehicle unit sales: | |||||||||||||||||
Domestic | 19,638 | 21,039 | (1,401) | (6.7) | 84,552 | 97,642 | (13,090) | (13.4) | |||||||||
Import | 21,905 | 22,400 | (495) | (2.2) | 91,146 | 100,131 | (8,985) | (9.0) | |||||||||
Premium luxury | 17,925 | 19,851 | (1,926) | (9.7) | 75,334 | 83,858 | (8,524) | (10.2) | |||||||||
Other | 5,683 | 4,318 | 1,365 | 22,987 | 18,175 | 4,812 | |||||||||||
65,151 | 67,608 | (2,457) | (3.6) | 274,019 | 299,806 | (25,787) | (8.6) | ||||||||||
Brand Mix - Retail New Vehicle Units Sold | |||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||
2023 ( %) | 2022 ( %) | 2023 ( %) | 2022 ( %) | ||||||||||||||
Domestic: | |||||||||||||||||
Ford, Lincoln | 9.7 | 9.8 | 10.6 | 10.5 | |||||||||||||
Chevrolet, Buick, Cadillac, GMC | 9.4 | 11.1 | 10.1 | 10.2 | |||||||||||||
Chrysler, Dodge, Jeep, Ram | 6.2 | 6.4 | 6.9 | 8.2 | |||||||||||||
Domestic total | 25.3 | 27.3 | 27.6 | 28.9 | |||||||||||||
Import: | |||||||||||||||||
Toyota | 21.4 | 21.3 | 19.4 | 20.6 | |||||||||||||
Honda | 12.4 | 10.5 | 12.7 | 9.9 | |||||||||||||
Nissan | 1.8 | 2.0 | 2.1 | 2.1 | |||||||||||||
Hyundai | 3.3 | 3.1 | 3.4 | 3.2 | |||||||||||||
Subaru | 3.8 | 2.9 | 3.6 | 3.0 | |||||||||||||
Other Import | 2.9 | 2.5 | 3.0 | 2.9 | |||||||||||||
Import total | 45.6 | 42.3 | 44.2 | 41.7 | |||||||||||||
Premium Luxury: | |||||||||||||||||
Mercedes-Benz | 8.9 | 10.0 | 9.2 | 10.4 | |||||||||||||
BMW | 10.1 | 11.2 | 9.4 | 9.9 | |||||||||||||
Lexus | 3.6 | 2.4 | 3.2 | 2.7 | |||||||||||||
Audi | 2.8 | 2.6 | 2.7 | 2.6 | |||||||||||||
Jaguar Land Rover | 1.7 | 2.1 | 1.7 | 1.8 | |||||||||||||
Other Premium Luxury | 2.0 | 2.1 | 2.0 | 2.0 | |||||||||||||
Premium Luxury total | 29.1 | 30.4 | 28.2 | 29.4 | |||||||||||||
100.0 | 100.0 | 100.0 | 100.0 | ||||||||||||||
AUTONATION, INC. | ||||||||||||||
UNAUDITED SUPPLEMENTARY DATA, Continued | ||||||||||||||
($ in millions) | ||||||||||||||
Capital Expenditures / Stock Repurchases | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Capital expenditures | $ | 124.3 | $ | 92.8 | $ | 410.3 | $ | 329.0 | ||||||
Cash paid for acquisitions, net of cash acquired (1) | $ | 0.3 | $ | 110.0 | $ | 271.4 | $ | 191.6 | ||||||
Proceeds from exercises of stock options | $ | - | $ | - | $ | 1.9 | $ | 3.4 | ||||||
Stock repurchases: | ||||||||||||||
Aggregate purchase price (2) | $ | 151.2 | $ | 497.2 | $ | 863.6 | $ | 1,710.2 | ||||||
Shares repurchased (in millions) | 1.1 | 4.6 | 6.4 | 15.6 | ||||||||||
Floorplan Assistance and Expense | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
2023 | 2022 | Variance | 2023 | 2022 | Variance | |||||||||
Floorplan assistance earned (included in cost of sales) | $ | 33.7 | $ | 27.7 | $ | 6.0 | $ | 125.8 | $ | 108.9 | $ | 16.9 | ||
New vehicle floorplan interest expense | (43.0) | (17.3) | (25.7) | (132.1) | (35.5) | (96.6) | ||||||||
Net new vehicle inventory carrying benefit (expense) | $ | (9.3) | $ | 10.4 | $ | (19.7) | $ | (6.3) | $ | 73.4 | $ | (79.7) | ||
Balance Sheet and Other Highlights | ||||||||||||||
December 31, 2023 | December 31, 2022 | |||||||||||||
Cash and cash equivalents | $ | 60.8 | $ | 72.6 | ||||||||||
Inventory | $ | 3,033.4 | $ | 2,048.3 | ||||||||||
Floorplan notes payable | $ | 3,382.4 | $ | 2,109.3 | ||||||||||
Non-recourse debt | $ | 258.4 | $ | 323.6 | ||||||||||
Non-vehicle debt | $ | 4,030.3 | $ | 3,649.5 | ||||||||||
Equity | $ | 2,211.4 | $ | 2,047.8 | ||||||||||
New days supply (industry standard of selling days) | 36 days | 19 days | ||||||||||||
Used days supply (trailing calendar month days) | 39 days | 31 days | ||||||||||||
Key Credit Agreement Covenant Compliance Calculations (3) | ||||||||||||||
Leverage ratio | 2.19x | |||||||||||||
Covenant | less than or equal to | 3.75x | ||||||||||||
Interest coverage ratio | 6.06x | |||||||||||||
Covenant | greater than or equal to | 3.00x | ||||||||||||
(1) | Twelve months ended December 31, 2022, includes $81.6 million that was reflected as deposits for investment for the nine months ended September 30, 2022. | ||||
(2) | Excludes excise tax accrual under Inflation Reduction Act. | ||||
(3) | Calculated in accordance with our credit agreement as filed with our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023. | ||||
AUTONATION, INC. | |||||||||||||||||||||||||
UNAUDITED SUPPLEMENTARY DATA, Continued | |||||||||||||||||||||||||
($ in millions, except per share data) | |||||||||||||||||||||||||
Comparable Basis Reconciliations (1) | |||||||||||||||||||||||||
Three Months Ended December 31, | |||||||||||||||||||||||||
Operating Income | Income from ContinuingOperations Before Income Taxes | Income Tax Provision(2) | Effective Tax Rate | Net Income | Diluted Earnings Per Share(3) | ||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
From continuing operations, as reported | $ | 349.9 | $ | 424.9 | $ | 277.7 | $ | 377.7 | $ | 61.5 | $ | 91.3 | 22.1 % | 24.2 % | $ | 216.2 | $ | 286.4 | |||||||
Discontinued operations, net of income taxes | - | - | |||||||||||||||||||||||
As reported | 216.2 | 286.4 | $ | 5.04 | $ | 5.72 | |||||||||||||||||||
Increase (decrease) in compensation expense related to market valuation changes in deferred compensation(4) | 11.2 | 6.8 | - | - | - | - | - | - | $ | - | $ | - | |||||||||||||
Gain on equity investment | - | - | (7.5) | - | (1.8) | - | (5.7) | - | $ | (0.13) | $ | - | |||||||||||||
Severance expenses | 6.6 | - | 6.6 | - | 1.6 | - | 5.0 | - | $ | 0.12 | $ | - | |||||||||||||
Initial credit loss expense associated with acquired loan portfolio | - | 34.2 | - | 34.2 | - | 8.4 | - | 25.8 | $ | - | $ | 0.51 | |||||||||||||
Acquisition-related expenses | - | 8.0 | - | 8.0 | - | 1.0 | - | 7.0 | $ | - | $ | 0.14 | |||||||||||||
Adjusted | $ | 367.7 | $ | 473.9 | $ | 276.8 | $ | 419.9 | $ | 61.3 | $ | 100.7 | 22.1 % | 24.0 % | $ | 215.5 | $ | 319.2 | $ | 5.02 | $ | 6.37 | |||
Three Months Ended December 31, | |||||||||||||||||||||||||
SG&A | SG&A as a Percentage ofGross Profit (%) | ||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
As reported | $ | 808.3 | $ | 766.7 | 66.5 | 59.8 | |||||||||||||||||||
Excluding: | |||||||||||||||||||||||||
Increase (decrease) in compensation expense related to market valuation changes in deferred compensation | 11.2 | 6.8 | |||||||||||||||||||||||
Severance expenses | 6.6 | - | |||||||||||||||||||||||
Acquisition-related expenses | - | 8.0 | |||||||||||||||||||||||
Adjusted | $ | 790.5 | $ | 751.9 | 65.1 | 58.7 | |||||||||||||||||||
Twelve Months Ended December 31, | |||||||||||||||||||||||||
Operating Income | Income from ContinuingOperations Before Income Taxes | Income Tax Provision(2) | Effective Tax Rate | Net Income | Diluted Earnings Per Share(3) | ||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
From continuing operations, as reported | $ | 1,651.9 | $ | 2,024.5 | $ | 1,350.2 | $ | 1,833.5 | $ | 330.0 | $ | 455.8 | 24.4 % | 24.9 % | $ | 1,020.2 | $ | 1,377.7 | |||||||
Discontinued operations, net of income taxes | 0.9 | (0.3) | |||||||||||||||||||||||
As reported | 1,021.1 | 1,377.4 | $ | 22.74 | $ | 24.29 | |||||||||||||||||||
Increase (decrease) in compensation expense related to market valuation changes in deferred compensation(4) | 17.5 | (18.3) | - | - | - | - | - | - | $ | - | $ | - | |||||||||||||
Gain on equity investment | - | - | (7.5) | - | (1.8) | - | (5.7) | - | $ | (0.13) | $ | - | |||||||||||||
Losses from hail storms and other natural catastrophes | 16.5 | - | 16.5 | - | 4.1 | - | 12.4 | - | $ | 0.28 | $ | - | |||||||||||||
Severance expenses | 6.6 | - | 6.6 | - | 1.6 | - | 5.0 | - | $ | 0.11 | $ | - | |||||||||||||
Initial credit loss expense associated with acquired loan portfolio | - | 34.2 | - | 34.2 | - | 8.4 | - | 25.8 | $ | - | $ | 0.46 | |||||||||||||
Acquisition-related expenses | - | 8.0 | - | 8.0 | - | 1.0 | - | 7.0 | $ | - | $ | 0.12 | |||||||||||||
Net gains on business/property dispositions | - | (16.1) | - | (16.1) | - | (4.0) | - | (12.1) | $ | - | $ | (0.21) | |||||||||||||
Legal settlement | - | (6.3) | - | (6.3) | - | (1.4) | - | (4.9) | $ | - | $ | (0.09) | |||||||||||||
Adjusted | $ | 1,692.5 | $ | 2,026.0 | $ | 1,365.8 | $ | 1,853.3 | $ | 333.9 | $ | 459.8 | 24.4 % | 24.8 % | $ | 1,032.8 | $ | 1,393.2 | $ | 23.00 | $ | 24.57 | |||
Twelve Months Ended December 31, | |||||||||||||||||||||||||
SG&A | SG&A as a Percentage ofGross Profit (%) | ||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
As reported | $ | 3,253.2 | $ | 3,026.1 | 63.4 | 57.5 | |||||||||||||||||||
Excluding: | |||||||||||||||||||||||||
Increase (decrease) in compensation expense related to market valuation changes in deferred compensation | 17.5 | (18.3) | |||||||||||||||||||||||
Losses from hail storms and other natural catastrophes | 16.5 | - | |||||||||||||||||||||||
Severance expenses | 6.6 | - | |||||||||||||||||||||||
Acquisition-related expenses | - | 8.0 | |||||||||||||||||||||||
Adjusted | $ | 3,212.6 | $ | 3,036.4 | 62.6 | 57.7 | |||||||||||||||||||
(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) | Increases and decreases in deferred compensation obligations, which are recorded in SG&A, are substantially offset by corresponding gains and losses, respectively, related to changes in the cash surrender value of corporate-owned life insurance ("COLI") for deferred compensation plan participants as a result of changes in market performance of the underlying investments; therefore, net impact to net income and earnings per share is de minimis. Gains and losses related to the COLI are recorded in non-operating Other Income (Loss), Net. | ||||||||||||||||||||||||
AUTONATION, INC. | ||||||||||||||||||
UNAUDITED SAME STORE DATA | ||||||||||||||||||
($ in millions, except per vehicle data) | ||||||||||||||||||
Operating Highlights | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||
2023 | 2022 | $ Variance | % Variance | 2023 | 2022 | $ Variance | % Variance | |||||||||||
Revenue: | ||||||||||||||||||
New vehicle | $ | 3,307.8 | $ | 3,142.9 | $ | 164.9 | 5.2 | $ | 12,572.1 | $ | 11,698.7 | $ | 873.4 | 7.5 | ||||
Retail used vehicle | 1,712.2 | 2,009.0 | (296.8) | (14.8) | 7,385.6 | 8,959.6 | (1,574.0) | (17.6) | ||||||||||
Wholesale | 120.8 | 152.6 | (31.8) | (20.8) | 544.5 | 633.6 | (89.1) | (14.1) | ||||||||||
Used vehicle | 1,833.0 | 2,161.6 | (328.6) | (15.2) | 7,930.1 | 9,593.2 | (1,663.1) | (17.3) | ||||||||||
Finance and insurance, net | 338.7 | 344.4 | (5.7) | (1.7) | 1,385.5 | 1,430.2 | (44.7) | (3.1) | ||||||||||
Total variable operations | 5,479.5 | 5,648.9 | (169.4) | (3.0) | 21,887.7 | 22,722.1 | (834.4) | (3.7) | ||||||||||
Parts and service | 1,114.2 | 1,025.3 | 88.9 | 8.7 | 4,431.8 | 4,073.3 | 358.5 | 8.8 | ||||||||||
Other | 6.1 | 8.4 | (2.3) | 30.1 | 30.5 | (0.4) | ||||||||||||
Total revenue | $ | 6,599.8 | $ | 6,682.6 | $ | (82.8) | (1.2) | $ | 26,349.6 | $ | 26,825.9 | $ | (476.3) | (1.8) | ||||
Gross profit: | ||||||||||||||||||
New vehicle | $ | 233.3 | $ | 338.4 | $ | (105.1) | (31.1) | $ | 1,048.4 | $ | 1,361.8 | $ | (313.4) | (23.0) | ||||
Retail used vehicle | 91.2 | 125.0 | (33.8) | (27.0) | 477.1 | 536.1 | (59.0) | (11.0) | ||||||||||
Wholesale | (2.5) | (6.5) | 4.0 | 16.3 | 15.9 | 0.4 | ||||||||||||
Used vehicle | 88.7 | 118.5 | (29.8) | (25.1) | 493.4 | 552.0 | (58.6) | (10.6) | ||||||||||
Finance and insurance | 338.7 | 344.4 | (5.7) | (1.7) | 1,385.5 | 1,430.2 | (44.7) | (3.1) | ||||||||||
Total variable operations | 660.7 | 801.3 | (140.6) | (17.5) | 2,927.3 | 3,344.0 | (416.7) | (12.5) | ||||||||||
Parts and service | 531.1 | 475.9 | 55.2 | 11.6 | 2,097.9 | 1,882.4 | 215.5 | 11.4 | ||||||||||
Other | (0.1) | 1.3 | (1.4) | 3.4 | 7.9 | (4.5) | ||||||||||||
Total gross profit | $ | 1,191.7 | $ | 1,278.5 | $ | (86.8) | (6.8) | $ | 5,028.6 | $ | 5,234.3 | $ | (205.7) | (3.9) | ||||
Retail vehicle unit sales: | ||||||||||||||||||
New | 63,410 | 59,996 | 3,414 | 5.7 | 240,327 | 229,098 | 11,229 | 4.9 | ||||||||||
Used | 62,213 | 67,441 | (5,228) | (7.8) | 263,642 | 297,970 | (34,328) | (11.5) | ||||||||||
125,623 | 127,437 | (1,814) | (1.4) | 503,969 | 527,068 | (23,099) | (4.4) | |||||||||||
Revenue per vehicle retailed: | ||||||||||||||||||
New | $ | 52,165 | $ | 52,385 | $ | (220) | (0.4) | $ | 52,312 | $ | 51,064 | $ | 1,248 | 2.4 | ||||
Used | $ | 27,522 | $ | 29,789 | $ | (2,267) | (7.6) | $ | 28,014 | $ | 30,069 | $ | (2,055) | (6.8) | ||||
Gross profit per vehicle retailed: | ||||||||||||||||||
New | $ | 3,679 | $ | 5,640 | $ | (1,961) | (34.8) | $ | 4,362 | $ | 5,944 | $ | (1,582) | (26.6) | ||||
Used | $ | 1,466 | $ | 1,853 | $ | (387) | (20.9) | $ | 1,810 | $ | 1,799 | $ | 11 | 0.6 | ||||
Finance and insurance | $ | 2,696 | $ | 2,703 | $ | (7) | (0.3) | $ | 2,749 | $ | 2,714 | $ | 35 | 1.3 | ||||
Total variable operations(1) | $ | 5,279 | $ | 6,339 | $ | (1,060) | (16.7) | $ | 5,776 | $ | 6,314 | $ | (538) | (8.5) | ||||
Operating Percentages | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||
2023 ( %) | 2022 ( %) | 2023 ( %) | 2022 ( %) | |||||||||||||||
Revenue mix percentages: | ||||||||||||||||||
New vehicle | 50.1 | 47.0 | 47.7 | 43.6 | ||||||||||||||
Used vehicle | 27.8 | 32.3 | 30.1 | 35.8 | ||||||||||||||
Parts and service | 16.9 | 15.3 | 16.8 | 15.2 | ||||||||||||||
Finance and insurance, net | 5.1 | 5.2 | 5.3 | 5.3 | ||||||||||||||
Other | 0.1 | 0.2 | 0.1 | 0.1 | ||||||||||||||
100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||||
Gross profit mix percentages: | ||||||||||||||||||
New vehicle | 19.6 | 26.5 | 20.8 | 26.0 | ||||||||||||||
Used vehicle | 7.4 | 9.3 | 9.8 | 10.5 | ||||||||||||||
Parts and service | 44.6 | 37.2 | 41.7 | 36.0 | ||||||||||||||
Finance and insurance | 28.4 | 26.9 | 27.6 | 27.3 | ||||||||||||||
Other | - | 0.1 | 0.1 | 0.2 | ||||||||||||||
100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||||
Operating items as a percentage of revenue: | ||||||||||||||||||
Gross profit: | ||||||||||||||||||
New vehicle | 7.1 | 10.8 | 8.3 | 11.6 | ||||||||||||||
Used vehicle - retail | 5.3 | 6.2 | 6.5 | 6.0 | ||||||||||||||
Parts and service | 47.7 | 46.4 | 47.3 | 46.2 | ||||||||||||||
Total | 18.1 | 19.1 | 19.1 | 19.5 | ||||||||||||||
(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. | ||||||||
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SOURCE AutoNation, Inc.
