AutoNation, Inc. : AutoNation Reports All-Time Record Quarterly EPS from Continuing Operations
04/25/2012| 08:38am US/Eastern
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- EPS from continuing operations for the first quarter of
2012 was an all-time record (1) $0.56, up 22% compared to the
year-ago period
- Operating income of $149 million, an increase of 6%
compared to the year-ago period
- Total revenue of $3.7 billion, up 10% compared to the
year-ago period; revenue and gross profit for all major
business sectors -- new vehicles, used vehicles, parts and
service, and finance and insurance -- improved compared to
the first quarter of 2011
FORT LAUDERDALE, Fla., April 25, 2012 /PRNewswire/
-- AutoNation, Inc. (AN), America's
largest automotive retailer, today reported 2012 first
quarter net income from continuing operations of $74 million,
or $0.56 per share, compared to net income from continuing
operations of $70 million, or $0.46 per share, for the same
period in the prior year, a 22% improvement on a per-share
basis.
2012 first quarter revenue totaled $3.7 billion,
compared to $3.3 billion in the year-ago period, an increase
of 10%, driven primarily by stronger retail new vehicle unit
sales. AutoNation's new vehicle unit sales
increased 8% on a same store basis and 10% overall.
According to CNW Research data, total U.S. industry retail
new vehicle unit sales increased 7%.
2012 first quarter gross profit totaled $603 million,
compared to $566 million in the year-ago period, an increase
of 6%, primarily due to an increase in finance and insurance
gross profit, as well as an increase in retail new vehicle
gross profit. In the first quarter of 2011, gross
profit was favorably impacted by $4.6 million, or $82 on a
per new vehicle retailed basis, related to additional
incentives on premium luxury vehicles previously sold.
Mike Jackson, Chairman and Chief Executive Officer, said,
"AutoNation delivered record EPS from continuing
operations in the first quarter of 2012, as we drove
increased profitability in each of our business
sectors."
Mr. Jackson added, "The renaissance in auto retail is
well underway, reflected in a seasonally adjusted U.S.
industry annual selling rate of 14.5 million units for the
first quarter of 2012. The American consumer has more
choices than ever with improved fuel efficiency, better
technology, and accelerated product offerings. We have
increased our 2012 U.S. industry new vehicle sales forecast
to mid-14 million units, as we see continued momentum in U.S.
auto sales."
During the first quarter of 2012, AutoNation repurchased 11.7
million shares of common stock, or 9% of the shares
outstanding as of December 31, 2011, for an aggregate
purchase price of $405.4 million, and, from April 1 through
April 24, 2012, AutoNation repurchased 2.1 million shares for
an aggregate purchase price of $70.8 million. As of
April 24, 2012, there were approximately 122
million shares outstanding.
AutoNation has three operating 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(2) segment is comprised of
stores that sell vehicles manufactured primarily by Toyota,
Honda, and Nissan; and the Premium Luxury(2) segment is
comprised of stores that sell vehicles manufactured primarily
by Mercedes, BMW, and Lexus. Segment results for the first
quarter of 2012 were as follows:
Domestic - Domestic segment income(3) was $50 million
compared to year-ago segment income of $43 million.
First quarter Domestic retail new vehicle unit sales
increased 16%.
Import - Import segment income(3) was $62 million compared
to year-ago segment income of $55 million. First
quarter Import retail new vehicle unit sales increased
6%.
Premium Luxury - Premium Luxury segment income(3) was $59
million compared to year-ago segment income of $58
million. First quarter Premium Luxury retail new
vehicle unit sales increased 14%.
The first quarter conference call may be accessed by
telephone at (888) 769-8515 (AutoNation) at 11:00 a.m.
Eastern Time or on AutoNation's investor relations
website at 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 April 25, 2012, through May 2, 2012 by
calling (888) 568-0151 (password 75300).
(1)
As compared to adjusted EPS from continuing
operations in prior periods.
(2)
As of March 31, 2012, we revised the basis of
our segment reporting for our Import and Premium
Luxury segments to reclassify five Audi franchises
from the Import segment to the Premium Luxury
segment. In connection with this change, we have
reclassified historical amounts to conform to our
current segment presentation.
(3)
Segment income 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 260
new vehicle franchises, which sell 32 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. AutoNation is driven to be the best-run, most
profitable automotive retailer. Follow us at www.facebook.com/autonation.
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
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:
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 may
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 March 31,
2012
2011
Revenue:
New vehicle
$
1,994.3
$
1,785.1
Used vehicle
918.8
831.4
Parts and service
599.9
570.0
Finance and insurance, net
130.2
110.7
Other
13.8
13.9
Total revenue
3,657.0
3,311.1
Cost of sales:
New vehicle
1,860.3
1,659.8
Used vehicle
837.7
753.3
Parts and service
349.7
325.5
Other
6.3
6.3
Total cost of sales
3,054.0
2,744.9
Gross profit
603.0
566.2
Selling, general and administrative
expenses
432.9
407.7
Depreciation and amortization
21.2
20.7
Other expenses (income), net
0.2
(2.2)
Operating income
148.7
140.0
Non-operating income (expense) items:
Floorplan interest expense
(10.7)
(11.2)
Other interest expense
(20.5)
(16.3)
Interest income
0.1
0.3
Other income, net
2.0
1.7
Income from continuing operations before income
taxes
119.6
114.5
Income tax provision
46.1
44.2
Net income from continuing operations
73.5
70.3
Loss from discontinued operations, net of
income taxes
(0.5)
(0.9)
Net income
$
73.0
$
69.4
Diluted earnings (loss) per share:
Continuing operations
$ 0.56
$
0.46
Discontinued operations
$
-
$
(0.01)
Net income
$
0.55
$
0.46
Weighted average common shares
outstanding
132.3
151.8
Common shares outstanding, net of treasury
stock, at March 31
124.3
148.6
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions, except per vehicle
data)
Operating Highlights
Three Months Ended March 31,
2012
2011
$ Variance
% Variance
Revenue:
New vehicle
$
1,994.3
$ 1,785.1
$
209.2
11.7
Retail used vehicle
801.1
727.4
73.7
10.1
Wholesale
117.7
104.0
13.7
13.2
Used vehicle
918.8
831.4
87.4
10.5
Parts and service
599.9
570.0
29.9
5.2
Finance and insurance, net
130.2
110.7
19.5
17.6
Other
13.8
13.9
(0.1)
Total revenue
$
3,657.0
$ 3,311.1
$
345.9
10.4
Gross profit:
New vehicle
$
134.0
$
125.3
$
8.7
6.9
Retail used vehicle
78.5
73.8
4.7
6.4
Wholesale
2.6
4.3
(1.7)
Used vehicle
81.1
78.1
3.0
3.8
Parts and service
250.2
244.5
5.7
2.3
Finance and insurance
130.2
110.7
19.5
17.6
Other
7.5
7.6
(0.1)
Total gross profit
603.0
566.2
36.8
6.5
Selling, general and administrative
expenses
432.9
407.7
(25.2)
(6.2)
Depreciation and amortization
21.2
20.7
(0.5)
Other expenses (income), net
0.2
(2.2)
(2.4)
Operating income
148.7
140.0
8.7
6.2
Non-operating income (expense) items:
Floorplan interest expense
(10.7)
(11.2)
0.5
Other interest expense
(20.5)
(16.3)
(4.2)
Interest income
0.1
0.3
(0.2)
Other income, net
2.0
1.7
0.3
Income from continuing operations before income
taxes
$
119.6
$
114.5
$
5.1
4.5
Retail vehicle unit sales:
New
61,516
55,710
5,806
10.4
Used
46,116
42,089
4,027
9.6
107,632
97,799
9,833
10.1
Revenue per vehicle retailed:
New
$
32,419
$ 32,043
$
376
1.2
Used
$
17,371
$ 17,282
$
89
0.5
Gross profit per vehicle retailed:
New
$
2,178
$
2,249
$
(71)
(3.2)
Used
$
1,702
$
1,753
$
(51)
(2.9)
Finance and insurance
$
1,210
$
1,132
$
78
6.9
Operating Percentages
Three Months Ended March 31,
2012 (%)
2011 (%)
Revenue mix percentages:
New vehicle
54.5
53.9
Used vehicle
25.1
25.1
Parts and service
16.4
17.2
Finance and insurance, net
3.6
3.3
Other
0.4
0.5
100.0
100.0
Gross profit mix percentages:
New vehicle
22.2
22.1
Used vehicle
13.4
13.8
Parts and service
41.5
43.2
Finance and insurance
21.6
19.6
Other
1.3
1.3
100.0
100.0
Operating items as a percentage of
revenue:
Gross profit:
New vehicle
6.7
7.0
Used vehicle - retail
9.8
10.1
Parts and service
41.7
42.9
Total
16.5
17.1
Selling, general and administrative
expenses
11.8
12.3
Operating income
4.1
4.2
Operating items as a percentage of total gross
profit:
Selling, general and administrative
expenses
71.8
72.0
Operating income
24.7
24.7
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions, except per vehicle
data)
Segment Operating Highlights
Three Months Ended March 31,
2012
2011
$ Variance
% Variance
Revenue:
Domestic
$
1,229.1
$
1,096.3
$
132.8
12.1
Import
1,366.6
1,257.6
109.0
8.7
Premium luxury
1,022.2
918.1
104.1
11.3
Corporate and other
39.1
39.1
-
-
Total revenue
$
3,657.0
$
3,311.1
$
345.9
10.4
*Segment income
Domestic
$
49.7
$
42.9
$
6.8
15.9
Import
61.9
55.0
6.9
12.5
Premium luxury
58.8
57.7
1.1
1.9
Corporate and other
(32.4)
(26.8)
(5.6)
Total segment income
138.0
128.8
9.2
7.1
Add: Floorplan interest expense
10.7
11.2
(0.5)
Operating income
$
148.7
$
140.0
$
8.7
6.2
* Segment income is defined as operating income
less floorplan interest expense
Retail new vehicle unit sales:
Domestic
20,513
17,736
2,777
15.7
Import
31,038
29,230
1,808
6.2
Premium luxury
9,965
8,744
1,221
14.0
61,516
55,710
5,806
10.4
Brand Mix - New Vehicle Retail Units
Sold
Three Months Ended March 31,
2012 (%)
2011 (%)
Domestic:
Ford, Lincoln
18.2
17.1
Chevrolet, Buick, Cadillac, GMC
11.3
12.1
Chrysler, Jeep, Dodge
3.8
2.6
Domestic total
33.3
31.8
Import:
Honda
11.0
13.0
Toyota
20.0
19.6
Nissan
12.6
12.8
Other imports(1)
6.9
7.1
Import total
50.5
52.5
Premium Luxury:
Mercedes-Benz
7.7
6.8
BMW
3.8
4.1
Lexus
2.0
2.1
Other premium luxury (Audi, Land Rover,
Porsche)(1)
2.7
2.7
Premium Luxury total
16.2
15.7
100.0
100.0
(1)
As of March 31, 2012, we revised the basis of
segmentation for our Import and Premium Luxury
segments to reclassify our Audi franchises from the
Import segment to the Premium Luxury segment. In
connection with this change, we have reclassified
historical amounts to conform to our current segment
presentation. We have five Audi franchises for which
we reclassified revenue of $49.3 million and segment
income of $3.5 million during the three months ended
March 31, 2012, and revenue of $39.7 million and
segment income of $2.5 million during the three
months ended March 31, 2011.
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA,
Continued
($ in millions, except per share
data)
Capital Expenditures / Stock Repurchases
Three Months Ended March 31,
2012
2011
Capital expenditures (1)
$
29.1
$
24.7
Acquisitions
$
-
$
64.2
Proceeds from exercises of stock options
$
0.3
$
31.9
Stock repurchases:
Aggregate purchase price
$
405.4
$
58.8
Shares repurchased (in millions)
11.7
1.8
Floorplan Assistance and Expense
Three Months Ended March 31,
2012
2011
Variance
Floorplan assistance earned (included in cost
of sales)
Includes accrued construction in progress and
excludes property acquired under capital
leases
(2)
As of December 31, 2011, we have revised our
method of calculating used vehicle days supply from a
dollar day supply to a unit day supply (including
wholesale units). 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 March 31,
Net Income
Diluted Earnings Per Share**
2012
2011
2012
2011
As reported
$
73.0
$ 69.4
$
0.55
$
0.46
Discontinued operations, net of income
taxes
0.5
0.9
$
-
$
0.01
From continuing operations, as reported
73.5
70.3
$
0.56
$
0.46
Adjusted
$
73.5
$ 70.3
$
0.56
$
0.46
*
Please refer to the "Non-GAAP Financial
Measures" section of the Press Release.
**
Earnings per share amounts are calculated
discretely and therefore may not add up to the
total.
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