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Autonation Inc NYSE: AN-N

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AutoNation Reports All-Time Record Quarterly EPS

PR Newswire - PRF - Mon Jul 19, 5:58AM CDT
  

FORT LAUDERDALE, Fla. , July 19, 2021 /PRNewswire/ --  AutoNation, Inc. (NYSE:AN), America's largest and most recognized automotive retailer, today reported second quarter 2021 net income from continuing operations of $385 million , or $4.83 per share. Second quarter 2020 net income from continuing operations was $280 million , or $3.18 per share, which included a non-cash unrealized gain related to our investment in Vroom of $161 million after-tax, or $1.82 per share. Reconciliations of non-GAAP financial measures are included in the attached financial tables.

Mike Jackson , AutoNation's Chief Executive Officer, stated, "Demand continues to outpace supply for new vehicles. We expect this to continue into 2022 due to consumers' preference for personal transportation coupled with lower interest rates."

Operational Summary

Second quarter 2021 Operational Summary:

  • New Vehicle Retail Unit Sales – Same-store new vehicle unit sales increased 42% compared to the prior year and increased 12% compared to the second quarter of 2019.
  • Used Vehicle Retail Unit Sales – Same-store used vehicle unit sales increased 37% compared to the prior year and increased 32% compared to the second quarter of 2019.
  • Revenue – Same-store revenue was an all-time record $7.0 billion , an increase of 54% compared to the year-ago period and an increase of 33% compared to the second quarter of 2019.
  • Gross Profit - Same-store gross profit totaled $1.3 billion , an increase of 68% compared to the year-ago period and an increase of 52% compared to the second quarter of 2019.
  • New Vehicle Gross Profit - Same-store new vehicle gross profit per vehicle retailed was $4,157 , up $1,959 or 89% compared to the year-ago period and up 130% compared to the second quarter of 2019.
  • Used Vehicle Gross Profit - Same-store used vehicle gross profit per vehicle retailed was $2,240 , up $439 or 24% compared to the year-ago period and up 53% compared to the second quarter of 2019.
  • Customer Financial Services Gross Profit - Same-store Customer Financial Services gross profit per vehicle retailed was a record $2,342 , up $167 or 8% compared to the year-ago period and up 21% compared to the second quarter of 2019.
  • Customer Care Gross Profit - Same-store Customer Care gross profit was $432 million , an increase of 41% compared to the year-ago period and an increase of 8% compared to the second quarter of 2019.
  • SG&A as a Percentage of Gross Profit – SG&A as a percentage of gross profit was 56.5%, an improvement of 1,170 basis points compared to adjusted SG&A as a percentage of gross profit of 68.2% in the prior year and a 1,500 basis improvement compared to the second quarter of 2019.

 

Selected GAAP Financial Data

($ in millions, except per share data)


Three Months Ended June 30,


2021

2020

2019

YoY

 2021
vs.
2019







Revenue

$   6,978.4

$   4,533.0

$  5,343.8

54%

31%

Gross Profit

$   1,326.3

$     795.0

$     890.8

67%

49%

Operating Income 

$     530.2

$     201.4

$     203.5

163%

161%

Net Income  from Continuing Operations

$     384.9

$     279.9

$     101.0

38%

281%

Diluted EPS from Continuing Operations

$       4.83

$       3.18

$       1.12

52%

331%







Same-store Revenue

$   6,967.9

$   4,510.7

$  5,234.9

54%

33%

Same-store Gross Profit

$   1,324.6

$     790.5

$     873.5

68%

52%







Same-store New Vehicle Retail Unit Sales

77,081

54,359

69,063

42%

12%

Same- store Used Vehicle Retail Unit Sales

80,305

58,749

60,879

37%

32%







Selected Non-GAAP Financial Data

($ in millions, except per share data)


Three Months Ended June 30,


2021

2020

2019

YoY

 2021
vs.
2019







Adjusted Operating Income

$     530.2

$     206.9

$     213.1

156%

149%

Adjusted Net Income from Continuing Operations

$     384.9

$     123.9

$     108.3

211%

255%

Adjusted Diluted EPS from Continuing Operations

$       4.83

$       1.41

$       1.20

243%

303%

Capital Allocation AutoNation USA San Antonio opened as scheduled in the second quarter of 2021. The store has exceeded expectations and was profitable in its first full month of operation. AutoNation remains on track to open four additional AutoNation USA stores in the second half of 2021 and 12 additional new stores in 2022. AutoNation targets to have over 130 AutoNation USA stores in operation from coast-to-coast by the end of 2026. The AutoNation USA stores will continue to leverage the AutoNation brand, scale, and proven Customer-centric processes to capture a larger share of the used vehicle market.

During the second quarter of 2021, AutoNation repurchased 7.5 million shares of common stock, or 9% of shares outstanding for an aggregate purchase price of $736 million . Year-to-date through July 15, 2021 , AutoNation repurchased 12.9 million shares of common stock, or 15% of the shares outstanding at the beginning of the year, for an aggregate purchase price of $1.2 billion . AutoNation today announced that the Board of Directors authorized the repurchase of up to an additional $1 billion of AutoNation common stock. As of July 15, 2021 , AutoNation had approximately 71.6 million shares outstanding.

Liquidity and Leverage As of June 30, 2021 , AutoNation had $1.6 billion of liquidity, including $60 million in cash and approximately $1.6 billion of availability under our revolving credit facility. The Company's covenant leverage ratio was 1.2x at quarter-end, or 1.1x net of cash and used floorplan availability. AutoNation had approximately $2.0 billion of non-vehicle debt outstanding as of June 30, 2021 .

Segment Results Segment results (1) for the second quarter 2021 were as follows:

Second Quarter 2021 Segment Results

  • Domestic - Domestic segment income (2) was $169 million compared to year-ago segment income of $82 million , an increase of 106%.
  • Import - Import segment income (2) was $204 million compared to year-ago segment income of $88 million , an increase of 131%.
  • Premium Luxury - Premium Luxury segment income (2) was $226 million compared to year-ago segment income of $89 million , an increase of 153%.

For the six-month period ended June 30, 2021, AutoNation reported net income from continuing operations of $624 million , or $7.63 per share, compared to $48 million , or $0.54 per share, in the prior year. Adjusted net income from continuing operations was $619 million , or $7.56 per share, compared to $206 million , or $2.32 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)


Six Months Ended June 30,


2021

2020

2019

YoY

2021
vs.
2019

Revenue

$ 12,882.2

$   9,200.0

$ 10,325.6

40%

25%

Gross Profit

$   2,359.1

$   1,608.2

$  1,740.0

47%

36%

Operating Income (Loss)

$     867.1

$     (17.9)

$     394.3

NM

120%

Net Income  from Continuing Operations

$     624.4

$       47.7

$     193.1

NM

223%

Diluted EPS from Continuing Operations

$       7.63

$       0.54

$       2.14

NM

257%







Selected Non-GAAP Financial Data

($ in millions, except per share data)


Six Months Ended June 30,


2021

2020

2019

YoY

2021
vs.
2019

Adjusted Operating Income

$     867.1

$     371.8

$     395.6

133%

119%

Adjusted Net Income from Continuing Operations

$     618.7

$     206.3

$     194.1

200%

219%

Adjusted Diluted EPS from Continuing Operations

$       7.56

$       2.32

$       2.15

226%

252%

NM = Not Meaningful






The second quarter conference call may be accessed by telephone 833-979-2844 (ConferenceID:2999886) 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 July 19, 2021 , through August 9, 2021 , by calling 800-585-8367 (Conference ID:  2999886). 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, Jaguar Land Rover, 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, America's largest and most admired automotive retailer, is transforming the automotive industry through its bold leadership, innovation, and comprehensive brand extensions. As of June 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 $27 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," "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 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 June 30,


Six Months Ended June 30,




2021


2020


2021


2020











Revenue:










New vehicle

$

3,428.3

$

2,261.3

$

6,410.6

$

4,543.2


Used vehicle


2,222.9


1,324.5


3,972.0


2,573.2


Parts and service


950.8


689.9


1,801.8


1,566.2


Finance and insurance, net


369.0


246.4


682.0


482.2


Other


7.4


10.9


15.8


35.2

Total revenue


6,978.4


4,533.0


12,882.2


9,200.0











Cost of sales:










New vehicle


3,107.8


2,141.7


5,900.1


4,327.2


Used vehicle


2,020.2


1,207.5


3,629.1


2,365.2


Parts and service


518.3


378.5


980.3


866.0


Other


5.8


10.3


13.6


33.4

Total cost of sales


5,652.1


3,738.0


10,523.1


7,591.8











Gross profit


1,326.3


795.0


2,359.1


1,608.2











Selling, general, and administrative expenses


748.9


547.9


1,396.8


1,148.6

Depreciation and amortization


47.9


49.1


95.8


97.2

Goodwill impairment


-


-


-


318.3

Franchise rights impairment


-


-


-


57.5

Other (income) expense, net


(0.7)


(3.4)


(0.6)


4.5











Operating income (loss)


530.2


201.4


867.1


(17.9)











Non-operating income (expense) items:










Floorplan interest expense


(6.6)


(16.3)


(16.0)


(41.8)


Other interest expense


(20.9)


(23.2)


(42.1)


(46.7)


Other income, net (1)


8.9


214.6


19.9


211.7











Income from continuing operations before income taxes


511.6


376.5


828.9


105.3











Income tax provision


126.7


96.6


204.5


57.6











Net income from continuing operations


384.9


279.9


624.4


47.7











Loss from discontinued operations, net of income taxes


(0.1)


(0.1)


(0.2)


(0.2)





















Net income

$

384.8

$

279.8

$

624.2

$

47.5





















Diluted earnings (loss) per share (2) :










Continuing operations

$

4.83

$

3.18

$

7.63

$

0.54


Discontinued operations

$

-

$

-

$

-

$

-












Net income

$

4.83

$

3.18

$

7.63

$

0.53





















Weighted average common shares outstanding


79.7


88.1


81.8


89.0











Common shares outstanding, net of treasury stock, at period end


73.1


87.2


73.1


87.2











(1)

Current and prior periods include gains 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 June 30,


 Six Months Ended June 30, 





2021


2020


$ Variance


% Variance


2021


2020


$ Variance


% Variance

Revenue:


















New vehicle

$

3,428.3

$

2,261.3

$

1,167.0


51.6

$

6,410.6

$

4,543.2

$

1,867.4


41.1



Retail used vehicle


2,085.8


1,262.5


823.3


65.2


3,729.9


2,424.5


1,305.4


53.8



Wholesale


137.1


62.0


75.1


121.1


242.1


148.7


93.4


62.8


Used vehicle


2,222.9


1,324.5


898.4


67.8


3,972.0


2,573.2


1,398.8


54.4


Finance and insurance, net


369.0


246.4


122.6


49.8


682.0


482.2


199.8


41.4



Total variable operations


6,020.2


3,832.2


2,188.0


57.1


11,064.6


7,598.6


3,466.0


45.6


Parts and service


950.8


689.9


260.9


37.8


1,801.8


1,566.2


235.6


15.0


Other


7.4


10.9


(3.5)




15.8


35.2


(19.4)



Total revenue

$

6,978.4

$

4,533.0

$

2,445.4


53.9

$

12,882.2

$

9,200.0

$

3,682.2


40.0







































Gross profit:


















New vehicle

$

320.5

$

119.6

$

200.9


168.0

$

510.5

$

216.0

$

294.5


136.3



Retail used vehicle


180.4


105.8


74.6


70.5


305.6


189.3


116.3


61.4



Wholesale


22.3


11.2


11.1




37.3


18.7


18.6




Used vehicle


202.7


117.0


85.7


73.2


342.9


208.0


134.9


64.9


Finance and insurance


369.0


246.4


122.6


49.8


682.0


482.2


199.8


41.4



Total variable operations


892.2


483.0


409.2


84.7


1,535.4


906.2


629.2


69.4


Parts and service


432.5


311.4


121.1


38.9


821.5


700.2


121.3


17.3


Other


1.6


0.6


1.0




2.2


1.8


0.4



Total gross profit


1,326.3


795.0


531.3


66.8


2,359.1


1,608.2


750.9


46.7




















Selling, general, and administrative expenses


748.9


547.9


(201.0)


(36.7)


1,396.8


1,148.6


(248.2)


(21.6)




















Depreciation and amortization


47.9


49.1


1.2




95.8


97.2


1.4



Goodwill impairment


-


-


-




-


318.3


318.3



Franchise rights impairment


-


-


-




-


57.5


57.5



Other expense, net


(0.7)


(3.4)


(2.7)




(0.6)


4.5


5.1



 Operating income (loss) 


530.2


201.4


328.8


163.3


867.1


(17.9)


885.0


 NM 




















Non-operating income (expense) items:


















Floorplan interest expense


(6.6)


(16.3)


9.7




(16.0)


(41.8)


25.8




Other interest expense


(20.9)


(23.2)


2.3




(42.1)


(46.7)


4.6




Other income, net


8.9


214.6


(205.7)




19.9


211.7


(191.8)



Income from continuing operations before income taxes

$

511.6

$

376.5

$

135.1


35.9

$

828.9

$

105.3

$

723.6


 NM 




















Retail vehicle unit sales:


















New 


77,164


54,513


22,651


41.6


146,525


111,252


35,273


31.7


Used


80,589


58,920


21,669


36.8


152,369


115,069


37,300


32.4





157,753


113,433


44,320


39.1


298,894


226,321


72,573


32.1




















Revenue per vehicle retailed:


















New 

$

44,429

$

41,482

$

2,947


7.1

$

43,751

$

40,837

$

2,914


7.1


Used

$

25,882

$

21,427

$

4,455


20.8

$

24,479

$

21,070

$

3,409


16.2




















Gross profit per vehicle retailed:


















New 

$

4,153

$

2,194

$

1,959


89.3

$

3,484

$

1,942

$

1,542


79.4


Used

$

2,239

$

1,796

$

443


24.7

$

2,006

$

1,645

$

361


21.9


Finance and insurance

$

2,339

$

2,172

$

167


7.7

$

2,282

$

2,131

$

151


7.1


Total variable operations (1)

$

5,514

$

4,159

$

1,355


32.6

$

5,012

$

3,921

$

1,091


27.8









































Operating Percentages


 Three Months Ended June 30, 


 Six Months Ended June 30, 













2021 (%)


2020 (%)


2021 (%)


2020 (%)




























Revenue mix percentages:


















New vehicle


49.1


49.9


49.8


49.4










Used vehicle


31.9


29.2


30.8


28.0










Parts and service


13.6


15.2


14.0


17.0










Finance and insurance, net


5.3


5.4


5.3


5.2










Other


0.1


0.3


0.1


0.4













100.0


100.0


100.0


100.0




























Gross profit mix percentages:


















New vehicle


24.2


15.0


21.6


13.4










Used vehicle


15.3


14.7


14.5


12.9










Parts and service


32.6


39.2


34.8


43.5










Finance and insurance


27.8


31.0


28.9


30.0










Other


0.1


0.1


0.2


0.2













100.0


100.0


100.0


100.0




























Operating items as a percentage of revenue:


















Gross profit:



















New vehicle


9.3


5.3


8.0


4.8











Used vehicle - retail


8.6


8.4


8.2


7.8











Parts and service


45.5


45.1


45.6


44.7











Total


19.0


17.5


18.3


17.5










Selling, general, and administrative expenses


10.7


12.1


10.8


12.5










Operating income (loss)


7.6


4.4


6.7


 NM 




























Operating items as a percentage of total gross profit:


















Selling, general, and administrative expenses


56.5


68.9


59.2


71.4










Operating income (loss)


40.0


25.3


36.8


 NM 















































(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.

NM  - Not Meaningful
















 

 AUTONATION, INC. 

 UNAUDITED SUPPLEMENTARY DATA 

 ($ in millions) 






































Segment Operating Highlights


Three Months Ended June 30,


 Six Months Ended June 30, 




2021


2020


$ Variance


% Variance


2021


2020


$ Variance


% Variance





































Revenue:


















Domestic

$

2,124.8

$

1,486.0

$

638.8


43.0

$

3,971.5

$

2,969.5

$

1,002.0


33.7


Import


2,175.0


1,325.3


849.7


64.1


3,944.6


2,687.4


1,257.2


46.8


Premium luxury


2,468.5


1,564.8


903.7


57.8


4,572.0


3,181.6


1,390.4


43.7


    Total


6,768.3


4,376.1


2,392.2


54.7


12,488.1


8,838.5


3,649.6


41.3


Corporate and other


210.1


156.9


53.2


33.9


394.1


361.5


32.6


9.0


    Total consolidated revenue

$

6,978.4

$

4,533.0

$

2,445.4


53.9

$

12,882.2

$

9,200.0

$

3,682.2


40.0





































Segment income*:


















Domestic

$

169.0

$

82.1

$

86.9


105.8

$

287.5

$

136.2

$

151.3


111.1


Import


203.7


88.3


115.4


130.7


329.6


154.2


175.4


113.7


Premium luxury


225.7


89.2


136.5


153.0


384.2


169.4


214.8


126.8


    Total 


598.4


259.6


338.8


130.5


1,001.3


459.8


541.5


117.8



















Corporate and other


(74.8)


(74.5)


(0.3)




(150.2)


(519.5)


369.3



Add:  Floorplan interest expense


6.6


16.3


(9.7)




16.0


41.8


(25.8)



Operating income (loss)

$

530.2

$

201.4

$

328.8


163.3

$

867.1

$

(17.9)

$

885.0


 NM 



















* 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


21,459


18,048


3,411


18.9


43,128


36,375


6,753


18.6


Import


36,136


23,605


12,531


53.1


66,979


48,892


18,087


37.0


Premium luxury


19,569


12,860


6,709


52.2


36,418


25,985


10,433


40.2




77,164


54,513


22,651


41.6


146,525


111,252


35,273


31.7



















Retail used vehicle unit sales:


















Domestic


28,056


21,043


7,013


33.3


52,535


40,930


11,605


28.4


Import


27,128


20,064


7,064


35.2


52,229


39,133


13,096


33.5


Premium luxury


22,370


15,795


6,575


41.6


41,904


30,938


10,966


35.4




77,554


56,902


20,652


36.3


146,668


111,001


35,667


32.1






































Brand Mix - Retail New Vehicle Units Sold




















 Three Months Ended June 30, 


 Six Months Ended June 30, 












2021 (%)


2020 (%)


2021 (%)


2020 (%)




























Domestic:


















   Ford, Lincoln


9.4


12.5


10.3


11.9










   Chevrolet, Buick, Cadillac, GMC


9.8


10.5


10.3


11.2










   Chrysler, Dodge, Jeep, Ram


8.6


10.1


8.8


9.6










     Domestic total


27.8


33.1


29.4


32.7




























Import:


















   Toyota


20.9


19.2


21.6


20.2










   Honda


15.5


13.6


14.0


13.6










   Nissan


2.7


2.4


2.6


2.6










   Other Import


7.7


8.1


7.5


7.5










     Import total


46.8


43.3


45.7


43.9




























Premium Luxury:


















   Mercedes-Benz


8.6


9.7


8.8


9.4










   BMW


7.9


5.7


7.1


5.7










   Lexus


2.7


2.3


2.8


2.4










   Audi


2.6


2.1


2.5


2.1










   Jaguar Land Rover


2.0


2.3


2.1


2.4










   Other Premium Luxury 


1.6


1.5


1.6


1.4










     Premium Luxury total


25.4


23.6


24.9


23.4






























100.0


100.0


100.0


100.0













































NM - Not Meaningful
















 

 AUTONATION, INC

 UNAUDITED SUPPLEMENTARY DATA, Continued

 ($ in millions)






























































Capital Expenditures / Stock Repurchases


 Three Months Ended June 30,


 Six Months Ended June 30,









2021


2020


2021


2020





















Capital expenditures (1)

$

74.3

$

24.6

$

118.7

$

54.6






Cash paid for acquisitions, net of cash acquired

$

-

$

-

$

-

$

0.4






Proceeds from exercises of stock options

$

7.7

$

-

$

28.9

$

1.0






Stock repurchases:















Aggregate purchase price

$

736.1

$

-

$

1,042.2

$

80.0







Shares repurchased (in millions)


7.5


-


11.3


2.5





































Floorplan Assistance and Expense


 Three Months Ended June 30,


 Six Months Ended June 30,





2021


2020


 Variance


2021


2020


 Variance

















Floorplan assistance earned (included in cost of sales)

$

34.7

$

23.7

$

11.0

$

66.7

$

48.3

$

18.4


New vehicle floorplan interest expense


(6.0)


(14.1)


8.1


(14.9)


(37.2)


22.3


















Net new vehicle inventory carrying benefit

$

28.7

$

9.6

$

19.1

$

51.8

$

11.1

$

40.7

































Balance Sheet and Other Highlights
































June 30, 2021


December 31, 2020


June 30, 2020























Cash and cash equivalents

$

59.5

$

569.6

$

257.3








Inventory

$

1,756.2

$

2,598.5

$

2,432.3








Total floorplan notes payable

$

1,571.3

$

2,759.9

$

2,522.9








Non-vehicle debt

$

1,997.3

$

2,101.8

$

2,090.4








Equity

$

2,856.8

$

3,235.7

$

3,137.7








New days supply (industry standard of selling days)


 14 days


 42 days


 49 days








Used days supply (trailing calendar month days)


 34 days


 39 days


 31 days




















































Key Credit Agreement Covenant Compliance Calculations (2)






















Leverage ratio



 1.17x










Covenant

less than or equal to


 3.75x

























Capitalization ratio



43.3%










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 June 30,




 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



























As reported

















$

384.8

$

279.8

$

4.83

$

3.18




























Discontinued operations, net of income taxes


















0.1


0.1

$

-

$

-

From continuing operations, as reported

$

530.2

$

201.4

$

511.6

$

376.5

$

126.7

$

96.6


24.8%


25.7%


384.9


279.9

$

4.83

$

3.18




























Gain on equity investment


-


-


-


(214.7)


-


(54.2)






-


(160.5)

$

-

$

(1.82)


Executive separation costs


-


5.5


-


5.5


-


1.0






-


4.5

$

-

$

0.05



























Adjusted 

$

530.2

$

206.9

$

511.6

$

167.3

$

126.7

$

43.4


24.8%


25.9%

$

384.9

$

123.9

$

4.83

$

1.41
























































Three Months Ended June 30,




















SG&A


SG&A as a Percentage of Gross Profit (%)




















2021


2020


2021


2020

















As reported


$         748.9


$         547.9


56.5


68.9


















Excluding executive separation costs


-


5.5





















Adjusted


$         748.9


$         542.4


56.5


68.2































































































(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. 




 AUTONATION, INC. 

 UNAUDITED SUPPLEMENTARY DATA, Continued 

 ($ in millions, except per share data) 



























Comparable Basis Reconciliations (1)



















































Six Months Ended June 30,




 Operating Income (Loss) 


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



























As reported


















$        624.2


$          47.5


$          7.63


$          0.53




























Discontinued operations, net of income taxes


















0.2


0.2


$             -


$             -

From continuing operations, as reported


$         867.1


$         (17.9)


$        828.9


$        105.3


$        204.5


$          57.6


24.7%


54.7%


624.4


47.7


$          7.63


$          0.54




























Gain on equity investment


-


-


(7.5)


(214.7)


(1.8)


(54.2)






(5.7)


(160.5)


$         (0.07)


$         (1.80)


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 


$         867.1


$         371.8


$        821.4


$        280.3


$        202.7


$          74.0


24.7%


26.4%


$        618.7


$        206.3


$          7.56


$          2.32






























Six Months Ended June 30,




















SG&A


SG&A as a Percentage of Gross Profit (%)




















2021


2020


2021


2020

















As reported


$      1,396.8


$      1,148.6


59.2


71.4


















Excluding executive separation costs


-


5.5





















Adjusted


$      1,396.8


$      1,143.1


59.2


71.1















































(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. 



 

 AUTONATION, INC. 

 UNAUDITED SAME STORE DATA 

 ($ in millions, except per vehicle data) 









































Operating Highlights


Three Months Ended June 30,


 Six Months Ended June 30, 





2021


2020


$ Variance


% Variance


2021


2020


$ Variance


% Variance

Revenue:


















New vehicle

$

3,425.7

$

2,256.8

$

1,168.9


51.8

$

6,403.0

$

4,534.7

$

1,868.3


41.2



Retail used vehicle


2,079.8


1,260.1


819.7


65.1


3,720.6


2,418.9


1,301.7


53.8



Wholesale


136.8


61.9


74.9


121.0


241.7


148.4


93.3


62.9


Used vehicle


2,216.6


1,322.0


894.6


67.7


3,962.3


2,567.3


1,395.0


54.3


Finance and insurance, net


368.6


246.0


122.6


49.8


681.2


481.4


199.8


41.5



Total variable operations


6,010.9


3,824.8


2,186.1


57.2


11,046.5


7,583.4


3,463.1


45.7


Parts and service


949.9


674.8


275.1


40.8


1,799.0


1,528.4


270.6


17.7


Other


7.1


11.1


(4.0)




15.7


35.0


(19.3)



Total revenue

$

6,967.9

$

4,510.7

$

2,457.2


54.5

$

12,861.2

$

9,146.8

$

3,714.4


40.6







































Gross profit:


















New vehicle

$

320.4

$

119.5

$

200.9


168.1

$

510.0

$

215.8

$

294.2


136.3



  Retail used vehicle


179.9


105.8


74.1


70.0


304.8


189.2


115.6


61.1



  Wholesale


22.3


11.1


11.2




37.3


18.7


18.6




Used vehicle


202.2


116.9


85.3


73.0


342.1


207.9


134.2


64.6


Finance and insurance


368.6


246.0


122.6


49.8


681.2


481.4


199.8


41.5



Total variable operations


891.2


482.4


408.8


84.7


1,533.3


905.1


628.2


69.4


Parts and service


432.0


307.4


124.6


40.5


820.4


693.0


127.4


18.4


Other


1.4


0.7


0.7




2.1


1.5


0.6



Total gross profit

$

1,324.6

$

790.5

$

534.1


67.6

$

2,355.8

$

1,599.6

$

756.2


47.3







































Retail vehicle unit sales:


















New 


77,081


54,359


22,722


41.8


146,293


110,958


35,335


31.8


Used


80,305


58,749


21,556


36.7


151,871


114,658


37,213


32.5





157,386


113,108


44,278


39.1


298,164


225,616


72,548


32.2




















Revenue per vehicle retailed:


















New 

$

44,443

$

41,517

$

2,926


7.0

$

43,768

$

40,869

$

2,899


7.1


Used

$

25,899

$

21,449

$

4,450


20.7

$

24,498

$

21,097

$

3,401


16.1




















Gross profit per vehicle retailed:


















New 

$

4,157

$

2,198

$

1,959


89.1

$

3,486

$

1,945

$

1,541


79.2


Used

$

2,240

$

1,801

$

439


24.4

$

2,007

$

1,650

$

357


21.6


Finance and insurance

$

2,342

$

2,175

$

167


7.7

$

2,285

$

2,134

$

151


7.1


Total variable operations (1)

$

5,521

$

4,167

$

1,354


32.5

$

5,017

$

3,929

$

1,088


27.7









































Operating Percentages


 Three Months Ended June 30, 


 Six Months Ended June 30, 













2021 (%)


2020 (%)


2021 (%)


2020 (%)




























Revenue mix percentages:


















New vehicle


49.2


50.0


49.8


49.6










Used vehicle


31.8


29.3


30.8


28.1










Parts and service


13.6


15.0


14.0


16.7










Finance and insurance, net


5.3


5.5


5.3


5.3










Other


0.1


0.2


0.1


0.3













100.0


100.0


100.0


100.0




























Gross profit mix percentages:


















New vehicle


24.2


15.1


21.6


13.5










Used vehicle


15.3


14.8


14.5


13.0










Parts and service


32.6


38.9


34.8


43.3










Finance and insurance


27.8


31.1


28.9


30.1










Other


0.1


0.1


0.2


0.1













100.0


100.0


100.0


100.0




























Operating items as a percentage of revenue:
















Gross profit:



















New vehicle


9.4


5.3


8.0


4.8











Used vehicle - retail


8.6


8.4


8.2


7.8











Parts and service


45.5


45.6


45.6


45.3











   Total


19.0


17.5


18.3


17.5




























(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.

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