AUTONATION, INC. FORT LAUDERDALE, Fla., July 17, 2014 /PRNewswire/ -- AutoNation, Inc. (NYSE: AN), America's largest automotive retailer, today reported 2014 second quarter net income from continuing operations of $101 million, or $0.83 per share, compared to net income from continuing operations of $90 million, or $0.73 per share, for the same period in the prior year, a 14% improvement on a per-share basis.
2014 second quarter revenue totaled $4.8 billion, compared to $4.4 billion in the year-ago period, an increase of 8%, driven by stronger performance in new vehicles, parts and service, and finance and insurance. In the second quarter of 2014, AutoNation's retail new vehicle unit sales increased 6% on a same store basis and 8% overall.
Mike Jackson, Chairman and Chief Executive Officer, said, "AutoNation delivered its 15(th) consecutive quarter of double-digit year-over-year growth in EPS. We reconfirm our expectation of U.S. industry new vehicle unit sales to increase 3% to 5%, bringing U.S. industry new vehicle sales above 16 million units in 2014."
Acquisitions
In July 2014, AutoNation completed the acquisition of Roundtree Chrysler Dodge Jeep Ram in the Mobile, Alabama market. The annual revenue for this store is approximately $95 million.
Share Repurchase
During the second quarter of 2014, AutoNation repurchased 1.1 million shares of common stock for an aggregate purchase price of $64.1 million. As of July 16, 2014, AutoNation has approximately $336 million remaining Board authorization for share repurchase and 119 million shares outstanding.
Segment results((1)) for the second quarter of 2014 were as follows:
-- Domestic - Domestic segment income((2)) was $71 million compared to
year-ago segment income of $66 million, an increase of 7%.
-- Import - Import segment income((2)) was $78 million compared to year-ago
segment income of $73 million, an increase of 6%.
-- Premium Luxury - Premium Luxury segment income((2)) was $86 million
compared to year-ago segment income of $76 million, an increase of 13%.
For the six-month period ended June 30, 2014, the Company reported adjusted net income from continuing operations of $191 million, or $1.58 per share, compared to net income from continuing operations of $173 million, or $1.41 per share, for the same period in the prior year, an improvement of 12% on a per-share basis. On a GAAP basis, net income from continuing operations for the six-month period ended June 30, 2014 was $196 million, or $1.62 per share. Reconciliations of non-GAAP financial measures are included in the attached financial tables. The Company's revenue for the six-month period ended June 30, 2014, totaled $9.2 billion, up 7% compared to $8.5 billion for the same period in the prior year.
The second quarter conference call may be accessed by telephone at (888) 769-8515 (password: AutoNation) at 11:00 a.m. Eastern Time or on AutoNation's investor relations website at http://investors.autonation.com.
The webcast will also be available on our website under "Events & Presentations" following the call. A playback of the conference call will be available after 1:00 p.m. Eastern Time on July 17, 2014, through July 27, 2014 by calling (866) 462-8982 (password 75300).
((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 Chrysler; the Import segment is comprised of stores that sell vehicles manufactured primarily by Toyota, Honda, Nissan, and Hyundai; and the Premium Luxury segment is comprised of stores that sell vehicles manufactured primarily by Mercedes-Benz, BMW, Lexus, and Audi.
((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 is transforming the automotive retail industry through bold leadership. We deliver a superior automotive retail experience through our customer-focused sales and service processes. Owning and operating 273 new vehicle franchises, which sell 33 new vehicle brands across 15 states, AutoNation is America's largest automotive retailer, with state-of-the-art operations and the ability to leverage economies of scale that benefit the customer. As an indication of our leadership position in our industry, AutoNation is a component of the S&P 500 Index.
Please visit investors.autonation.com, www.autonation.com, www.twitter.com/autonation, www.twitter.com/CEOMikeJackson, www.facebook.com/autonation, and www.facebook.com/CEOMikeJackson, where AutoNation discloses additional information about the Company, its business, and its results of operations.
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," and variations of such words and similar expressions are intended to identify such forward-looking statements. Statements regarding our expectations for the future performance of our franchises and the automotive retail industry, as well as 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 integrate successfully acquired and awarded franchises and to attain planned sales volumes within our expected time frames; economic conditions generally; conditions in the credit markets and changes in interest rates; the success and financial viability of vehicle manufacturers and distributors with which we hold franchises; factors affecting our goodwill and other intangible asset impairment testing; natural disasters and other adverse weather events; restrictions imposed by vehicle manufacturers; the resolution of legal and administrative proceedings; regulatory factors affecting our business; 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.
NON-GAAP FINANCIAL MEASURES
This press release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as adjusted net income and earnings per share from continuing operations, 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 from its core business operations 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.
AUTONATION, INC.
UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENTS
(In millions, except per share data)
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2014 2013 2014 2013
---- ---- ---- ----
Revenue:
New vehicle $2,736.9 $2,493.6 $5,165.5 $4,751.3
Used vehicle 1,082.3 1,056.5 2,132.0 2,066.2
Parts and service 704.8 655.9 1,375.8 1,292.5
Finance and insurance, net 185.4 173.9 357.8 329.5
Other 79.1 46.6 120.9 83.4
Total revenue 4,788.5 4,426.5 9,152.0 8,522.9
------- ------- ------- -------
Cost of sales:
New vehicle 2,575.3 2,344.4 4,858.0 4,460.4
Used vehicle 993.0 972.4 1,948.4 1,896.1
Parts and service 404.0 375.7 788.3 740.0
Other 71.3 37.9 105.0 66.3
Total cost of sales 4,043.6 3,730.4 7,699.7 7,162.8
------- ------- ------- -------
Gross profit 744.9 696.1 1,452.3 1,360.1
Selling, general, and
administrative expenses 524.6 494.1 1,025.3 967.4
Depreciation and amortization 26.2 23.3 51.8 46.0
Other income, net (3.7) (2.2) (11.7) (3.6)
---- ---- ----- ----
Operating income 197.8 180.9 386.9 350.3
Non-operating income (expense)
items:
Floorplan interest expense (13.3) (13.6) (26.5) (26.5)
Other interest expense (21.3) (22.0) (42.9) (44.3)
Interest income 0.1 - 0.1 0.1
Other income, net 0.9 1.3 2.4 2.9
Income from continuing operations
before income taxes 164.2 146.6 320.0 282.5
Income tax provision 63.5 56.5 123.8 109.2
---- ---- ----- -----
Net income from continuing
operations 100.7 90.1 196.2 173.3
Loss from discontinued operations,
net of income taxes (0.3) (0.2) (0.7) (0.4)
---- ---- ---- ----
Net income $100.4 $89.9 $195.5 $172.9
====== ===== ====== ======
Diluted earnings (loss) per share*:
Continuing operations $0.83 $0.73 $1.62 $1.41
Discontinued operations $ - $ - $(0.01) $ -
Net income $0.83 $0.73 $1.61 $1.40
Weighted average common shares
outstanding 120.8 123.3 121.1 123.2
Common shares outstanding, net of
treasury stock, at period end 118.5 121.3 118.5 121.3
* Earnings per share amounts are calculated discretely and therefore may not add up to the total.
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions, except per vehicle data)
Three Months Ended June 30, Six Months Ended June 30,
Operating Highlights
--------------------
2014 2013 $ Variance % Variance 2014 2013 $ Variance % Variance
---- ---- ---------- ---------- ---- ---- ---------- ----------
Revenue:
New vehicle $2,736.9 $2,493.6 $243.3 9.8 $5,165.5 $4,751.3 $414.2 8.7
Retail used vehicle 989.1 954.0 35.1 3.7 1,934.9 1,853.2 81.7 4.4
Wholesale 93.2 102.5 (9.3) (9.1) 197.1 213.0 (15.9) (7.5)
---- ----- ---- ----- ----- -----
Used vehicle 1,082.3 1,056.5 25.8 2.4 2,132.0 2,066.2 65.8 3.2
Finance and insurance, net 185.4 173.9 11.5 6.6 357.8 329.5 28.3 8.6
Total variable operations 4,004.6 3,724.0 280.6 7.5 7,655.3 7,147.0 508.3 7.1
Parts and service 704.8 655.9 48.9 7.5 1,375.8 1,292.5 83.3 6.4
Other 79.1 46.6 32.5 120.9 83.4 37.5
Total revenue $4,788.5 $4,426.5 $362.0 8.2 $9,152.0 $8,522.9 $629.1 7.4
======== ======== ====== ======== ======== ======
Gross profit:
New vehicle $161.6 $149.2 $12.4 8.3 $307.5 $290.9 $16.6 5.7
Retail used vehicle 88.7 83.3 5.4 6.5 181.5 166.7 14.8 8.9
Wholesale 0.6 0.8 (0.2) 2.1 3.4 (1.3)
----
Used vehicle 89.3 84.1 5.2 6.2 183.6 170.1 13.5 7.9
Finance and insurance 185.4 173.9 11.5 6.6 357.8 329.5 28.3 8.6
Total variable operations 436.3 407.2 29.1 7.1 848.9 790.5 58.4 7.4
Parts and service 300.8 280.2 20.6 7.4 587.5 552.5 35.0 6.3
Other 7.8 8.7 (0.9) 15.9 17.1 (1.2)
Total gross profit 744.9 696.1 48.8 7.0 1,452.3 1,360.1 92.2 6.8
Selling, general and administrative expenses 524.6 494.1 (30.5) (6.2) 1,025.3 967.4 (57.9) (6.0)
Depreciation and amortization 26.2 23.3 (2.9) 51.8 46.0 (5.8)
Other income, net (3.7) (2.2) 1.5 (11.7) (3.6) 8.1
---- ---- --- ----- ---- ---
Operating income 197.8 180.9 16.9 9.3 386.9 350.3 36.6 10.4
Non-operating income (expense) items:
Floorplan interest expense (13.3) (13.6) 0.3 (26.5) (26.5) -
Other interest expense (21.3) (22.0) 0.7 (42.9) (44.3) 1.4
Interest income 0.1 - 0.1 0.1 0.1 -
Other income, net 0.9 1.3 (0.4) 2.4 2.9 (0.5)
---- ----
Income from continuing operations before income taxes $164.2 $146.6 $17.6 12.0 $320.0 $282.5 $37.5 13.3
====== ====== ===== ====== ====== =====
Retail vehicle unit sales:
New 80,554 74,352 6,202 8.3 151,777 141,511 10,266 7.3
Used 52,656 52,116 540 1.0 104,792 102,621 2,171 2.1
--- -----
133,210 126,468 6,742 5.3 256,569 244,132 12,437 5.1
======= ======= ===== ======= ======= ======
Revenue per vehicle retailed:
New $33,976 $33,538 $438 1.3 $34,033 $33,575 $458 1.4
Used $18,784 $18,305 $479 2.6 $18,464 $18,059 $405 2.2
Gross profit per vehicle retailed:
New $2,006 $2,007 $(1) - $2,026 $2,056 $(30) (1.5)
Used $1,685 $1,598 $87 5.4 $1,732 $1,624 $108 6.7
Finance and insurance $1,392 $1,375 $17 1.2 $1,395 $1,350 $45 3.3
Total variable operations(1) $3,271 $3,213 $58 1.8 $3,300 $3,224 $76 2.4
Three Months Ended June 30, Six Months Ended June 30,
Operating Percentages
---------------------
2014 (%) 2013 (%) 2014 (%) 2013 (%)
------- ------- ------- -------
Revenue mix percentages:
New vehicle 57.2 56.3 56.4 55.7
Used vehicle 22.6 23.9 23.3 24.2
Parts and service 14.7 14.8 15.0 15.2
Finance and insurance, net 3.9 3.9 3.9 3.9
Other 1.6 1.1 1.4 1.0
100.0 100.0 100.0 100.0
===== ===== ===== =====
Gross profit mix percentages:
New vehicle 21.7 21.4 21.2 21.4
Used vehicle 12.0 12.1 12.6 12.5
Parts and service 40.4 40.3 40.5 40.6
Finance and insurance 24.9 25.0 24.6 24.2
Other 1.0 1.2 1.1 1.3
100.0 100.0 100.0 100.0
===== ===== ===== =====
Operating items as a percentage of revenue:
Gross profit:
New vehicle 5.9 6.0 6.0 6.1
Used vehicle - retail 9.0 8.7 9.4 9.0
Parts and service 42.7 42.7 42.7 42.7
Total 15.6 15.7 15.9 16.0
Selling, general and administrative expenses 11.0 11.2 11.2 11.4
Operating income 4.1 4.1 4.2 4.1
Operating items as a percentage of total gross profit:
Selling, general and administrative expenses 70.4 71.0 70.6 71.1
Operating income 26.6 26.0 26.6 25.8
(1) Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new
vehicle, retail used vehicle, and finance and insurance gross profit by total retail vehicle unit
sales.
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions)
Segment Operating Highlights Three Months Ended June 30, Six Months Ended June 30,
---------------------------- --------------------------- -------------------------
2014 2013 $ Variance % Variance 2014 2013 $ Variance % Variance
---- ---- ---------- ---------- ---- ---- ---------- ----------
Revenue:
Domestic $1,604.9 $1,515.3 $89.6 5.9 $3,077.9 $2,893.3 $184.6 6.4
Import 1,717.8 1,629.3 88.5 5.4 3,267.2 3,133.0 134.2 4.3
Premium luxury 1,431.9 1,242.4 189.5 15.3 2,738.3 2,415.3 323.0 13.4
Total 4,754.6 4,387.0 367.6 8.4 9,083.4 8,441.6 641.8 7.6
Corporate and other 33.9 39.5 (5.6) (14.2) 68.6 81.3 (12.7) (15.6)
Total consolidated revenue $4,788.5 $4,426.5 $362.0 8.2 $9,152.0 $8,522.9 $629.1 7.4
Segment income*
Domestic $70.5 $66.1 $4.4 6.7 $134.3 $124.7 $9.6 7.7
Import 77.5 72.9 4.6 6.3 142.9 143.9 (1.0) (0.7)
Premium luxury 85.8 75.7 10.1 13.3 169.1 144.5 24.6 17.0
Total 233.8 214.7 19.1 8.9 446.3 413.1 33.2 8.0
Corporate and other (49.3) (47.4) (1.9) (85.9) (89.3) 3.4
Add: Floorplan interest expense 13.3 13.6 (0.3) 26.5 26.5 -
Operating income $197.8 $180.9 $16.9 9.3 $386.9 $350.3 $36.6 10.4
====== ====== ===== ====== ====== =====
* Segment income represents income for our reportable segments and is defined as operating income less floorplan interest expense
Retail new vehicle unit sales:
Domestic 26,182 25,191 991 3.9 49,997 47,735 2,262 4.7
Import 39,685 36,444 3,241 8.9 74,610 69,476 5,134 7.4
Premium luxury 14,687 12,717 1,970 15.5 27,170 24,300 2,870 11.8
80,554 74,352 6,202 8.3 151,777 141,511 10,266 7.3
====== ====== ===== ======= ======= ======
Brand Mix - New Vehicle Retail Units Sold
-----------------------------------------
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2014 (%) 2013 (%) 2014 (%) 2013 (%)
------- ------- ------- -------
Domestic:
Ford, Lincoln 16.7 17.8 17.2 18.0
Chevrolet, Buick, Cadillac, GMC 9.9 10.6 9.9 10.4
Chrysler, Jeep, Dodge 5.9 5.5 5.8 5.3
Domestic total 32.5 33.9 32.9 33.7
Import:
Honda 12.3 11.8 11.8 11.5
Toyota 19.6 19.9 19.3 20.0
Nissan 10.5 10.1 11.0 10.5
Other imports 6.9 7.2 7.1 7.1
Import total 49.3 49.0 49.2 49.1
Premium Luxury:
Mercedes-Benz 7.1 7.1 7.3 7.2
BMW 4.9 4.8 4.8 4.8
Lexus 2.6 2.1 2.6 2.1
Audi 1.5 1.2 1.3 1.2
Other premium luxury (Land Rover, Porsche) 2.1 1.9 1.9 1.9
Premium Luxury total 18.2 17.1 17.9 17.2
100.0 100.0 100.0 100.0
===== ===== ===== =====
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA, Continued
($ in millions)
Capital Expenditures / Stock Repurchases Three Months Ended June 30, Six Months Ended June 30,
---------------------------------------- --------------------------- -------------------------
2014 2013 2014 2013
---- ---- ---- ----
Capital expenditures(1) $52.9 $31.5 $87.8 $54.6
Cash paid for acquisitions $ - $69.7 $ - $72.5
Proceeds from exercises of stock options $6.8 $2.7 $22.1 $10.6
Stock repurchases:
Aggregate purchase price $64.1 $2.7 $179.8 $4.9
Shares repurchased (in millions) 1.1 0.1 3.6 0.1
Floorplan Assistance and Expense Three Months Ended June 30, Six Months Ended June 30,
-------------------------------- --------------------------- -------------------------
2014 2013 Variance 2014 2013 Variance
---- ---- -------- ---- ---- --------
Floorplan assistance earned (included in cost of sales) $26.7 $23.8 $2.9 $50.7 $42.4 $8.3
New vehicle floorplan interest expense (12.6) (13.1) 0.5 (25.3) (25.4) 0.1
Net new vehicle inventory carrying benefit $14.1 $10.7 $3.4 $25.4 $17.0 $8.4
===== ===== ==== ===== ===== ====
Balance Sheet and Other Highlights
----------------------------------
June 30, 2014 December 31, 2013 June 30, 2013
------------- ----------------- -------------
Cash and cash equivalents $68.5 $69.2 $69.7
Inventory $2,776.6 $2,827.2 $2,625.2
Total floorplan notes payable $2,869.1 $3,029.0 $2,748.1
Non-vehicle debt $1,883.2 $1,839.9 $1,936.8
Equity $2,125.1 $2,061.7 $1,882.5
New days supply (industry standard of selling days)(2) 59 days 62 days 67 days
Used days supply (trailing calendar month days) 36 days 35 days 30 days
Key Credit Agreement Covenant Compliance Calculations
-----------------------------------------------------
Ratio of funded indebtedness/
Adjusted EBITDA 2.19x
Covenant less than or equal to 3.75x
-------- --------------------- -----
Ratio of funded indebtedness including floorplan/
Total capitalization including floorplan 56.6%
Covenant less than or equal to 65.0%
-------- --------------------- ----
(1) Includes accrued construction in progress and excludes property acquired under capital leases
(2) As of December 31, 2013, we have revised our method of calculating new vehicle days supply to exclude
fleet sales and in-transit inventory. We have revised prior periods to conform to our revised
method of calculation
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA, Continued
($ in millions, except per share data)
Comparable Basis Reconciliations*
--------------------------------
Three Months Ended June 30,
---------------------------
Net Income Diluted Earnings Per
Share**
---------- ---------------------
2014 2013 2014 2013
---- ---- ---- ----
As reported $100.4 $89.9 $0.83 $0.73
Discontinued operations, net of income
taxes 0.3 0.2 $ - $ -
From continuing operations, as reported 100.7 90.1 $0.83 $0.73
Adjusted $100.7 $90.1 $0.83 $0.73
====== =====
Six Months Ended June 30,
-------------------------
Net Income Diluted Earnings Per
Share**
---------- ---------------------
2014 2013 2014 2013
---- ---- ---- ----
As reported $195.5 $172.9 $1.61 $1.40
Discontinued operations, net of income
taxes 0.7 0.4 $0.01 $ -
From continuing operations, as reported 196.2 173.3 $1.62 $1.41
Net gain related to business/property
dispositions (5.0) - $(0.04) $ -
Adjusted $191.2 $173.3 $1.58 $1.41
====== ======
* Please refer to the "Non-GAAP Financial Measures" section of the Press
Release.
** Diluted earnings per share amounts are calculated discretely and therefore
may not add up to the total.
AUTONATION, INC.
UNAUDITED SAME STORE DATA
($ in millions, except per vehicle data)
Operating Highlights Three Months Ended June 30, Six Months Ended June 30,
-------------------- --------------------------- -------------------------
2014 2013 $ Variance % Variance 2014 2013 $ Variance % Variance
---- ---- ---------- ---------- ---- ---- ---------- ----------
Revenue:
New vehicle $2,690.5 $2,490.5 $200.0 8.0 $5,078.7 $4,748.2 $330.5 7.0
Retail used vehicle 976.0 953.3 22.7 2.4 1,907.6 1,852.4 55.2 3.0
Wholesale 91.5 102.5 (11.0) (10.7) 193.5 213.0 (19.5) (9.2)
Used vehicle 1,067.5 1,055.8 11.7 1.1 2,101.1 2,065.4 35.7 1.7
Finance and insurance, net 182.9 173.7 9.2 5.3 352.8 329.3 23.5 7.1
Total variable operations 3,940.9 3,720.0 220.9 5.9 7,532.6 7,142.9 389.7 5.5
Parts and service 695.8 655.1 40.7 6.2 1,356.3 1,291.7 64.6 5.0
Other 73.8 46.1 27.7 114.5 83.0 31.5
Total revenue $4,710.5 $4,421.2 $289.3 6.5 $9,003.4 $8,517.6 $485.8 5.7
======== ======== ====== ======== ======== ======
Gross profit:
New vehicle $158.6 $148.9 $9.7 6.5 $302.2 $290.7 $11.5 4.0
Retail used vehicle 87.4 83.1 4.3 5.2 178.6 166.5 12.1 7.3
Wholesale 0.5 0.9 (0.4) 2.0 3.5 (1.5)
Used vehicle 87.9 84.0 3.9 4.6 180.6 170.0 10.6 6.2
Finance and insurance 182.9 173.7 9.2 5.3 352.8 329.3 23.5 7.1
Total variable operations 429.4 406.6 22.8 5.6 835.6 790.0 45.6 5.8
Parts and service 296.7 279.8 16.9 6.0 578.9 552.1 26.8 4.9
Other 7.8 8.9 (1.1) 16.0 17.2 (1.2)
Total gross profit $733.9 $695.3 $38.6 5.6 $1,430.5 $1,359.3 $71.2 5.2
====== ====== ===== ======== ======== =====
Retail vehicle unit sales:
New 78,968 74,227 4,741 6.4 148,692 141,386 7,306 5.2
Used 51,817 52,066 (249) (0.5) 102,928 102,571 357 0.3
---- ---
130,785 126,293 4,492 3.6 251,620 243,957 7,663 3.1
======= ======= ===== ======= ======= =====
Revenue per vehicle retailed:
New $34,071 $33,552 $519 1.5 $34,156 $33,583 $573 1.7
Used $18,836 $18,309 $527 2.9 $18,533 $18,060 $473 2.6
Gross profit per vehicle retailed:
New $2,008 $2,006 $2 0.1 $2,032 $2,056 $(24) (1.2)
Used $1,687 $1,596 $91 5.7 $1,735 $1,623 $112 6.9
Finance and insurance $1,398 $1,375 $23 1.7 $1,402 $1,350 $52 3.9
Total variable operations(1) $3,279 $3,212 $67 2.1 $3,313 $3,224 $89 2.8
Operating Percentages Three Months Ended June 30, Six Months Ended June 30,
--------------------- --------------------------- -------------------------
2014 (%) 2013 (%) 2014 (%) 2013 (%)
------- ------- ------- -------
Revenue mix percentages:
New vehicle 57.1 56.3 56.4 55.7
Used vehicle 22.7 23.9 23.3 24.2
Parts and service 14.8 14.8 15.1 15.2
Finance and insurance, net 3.9 3.9 3.9 3.9
Other 1.5 1.1 1.3 1.0
100.0 100.0 100.0 100.0
===== ===== ===== =====
Gross profit mix percentages:
New vehicle 21.6 21.4 21.1 21.4
Used vehicle 12.0 12.1 12.6 12.5
Parts and service 40.4 40.2 40.5 40.6
Finance and insurance 24.9 25.0 24.7 24.2
Other 1.1 1.3 1.1 1.3
100.0 100.0 100.0 100.0
===== ===== ===== =====
Operating items as a percentage of revenue:
Gross profit:
New vehicle 5.9 6.0 6.0 6.1
Used vehicle - retail 9.0 8.7 9.4 9.0
Parts and service 42.6 42.7 42.7 42.7
Total 15.6 15.7 15.9 16.0
(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.
