The following excerpt is from the company's SEC filing.
EPS from continuing operations was an all-time record
compared to the year-ago period; this marked the 20th consecutive quarter of double-digit year-over-year growth in EPS
Net income from continuing operations was an all-time record
net income from continuing operations of
Total revenue of
compared to the year-ago period, increasing across all major business sectors; operating income of
was an all-time record, an increase of
Announced agreement to acquire Allen Samuels Auto Group, which includes 12 stores with 31 franchises in 6 Texas markets, representing approximately $800 million in annual revenue
FORT LAUDERDALE, Fla., (
October 28, 2015
) — AutoNation, Inc.
America’s largest automotive retailer, today reported
per share, compared to net income from continuing operations of
per share, for the same period in the prior year, a
improvement on a per-share basis.
in the year-ago period, an increase of
, driven by stronger performance in all business sectors - new vehicles, used vehicles, parts and service, and finance and insurance. In the
, AutoNation’s retail new vehicle unit sales increased
on a same store basis.
Mike Jackson, Chairman, Chief Executive Officer and President, said, “We are very pleased with our strong year-over-year growth across all areas of our business, as well as our 20th consecutive quarter of double-digit year-over-year growth in EPS. This quarter we set another record for the highest ever quarterly EPS from continuing operations.”
Mr. Jackson also said, “We are pleased with how the AutoNation brand continues to be embraced and with the progress of our digital initiatives. Our consumer-friendly websites now generate over 25% of unit sales while sales from third-party sources have decreased to under 9%.”
AutoNation today announced it has signed an agreement to acquire 12 stores operating in the Houston, Dallas-Fort Worth, Corpus Christi, Tyler, Ennis and Waco, Texas markets from Allen Samuels Auto Group, representing approximately $800 million in annual revenue. Texas will represent approximately 25% of AutoNation’s total revenue, with 53 stores, 82 franchises, and 5,300 associates once the acquisition is complete. This transaction is subject to customary terms and conditions, including manufacturer approval, and is expected to close in the first quarter of 2016.
In September 2015, AutoNation completed the previously announced acquisition of a Mercedes-Benz store, an Audi store, and a Subaru and Volkswagen store from Valley Motors Auto Group in the Baltimore, Maryland market. The previously announced acquisition of 13 stores from Carl Gregory Enterprises is expected to close in the fourth quarter of 2015. Since the beginning of 2015, AutoNation has announced acquisitions with approximately $1.7 billion in annual revenue.
Mr. Jackson added, “We continue to seek acquisitions to leverage our scale, expand the AutoNation brand and provide a peerless experience to more customers.”
AutoNation previously announced its policy not to sell any vehicle for which there is an open safety recall. AutoNation estimates that at any given time 5%-10% of its new and used vehicle inventory will be on sales hold under its policy.
, AutoNation repurchased
shares of common stock for an aggregate purchase price of
October 1, 2015
October 26, 2015
. As of
, AutoNation has approximately
remaining Board authorization for share repurchase and
were as follows:
– Domestic segment income
compared to year-ago segment income of
– Import segment income
– Premium Luxury segment income
-month period ended
September 30, 2015
, AutoNation reported net income from continuing operations of
per share, compared to adjusted net income from continuing operations of
per share, for the same period in the prior year, an improvement of
on a per-share basis. On a GAAP basis, net income from continuing operations for the
September 30, 2014
per share. Reconciliations of non-GAAP financial measures are included in the attached financial tables. AutoNation’s revenue for the
for the same period in the prior year.
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 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
through November 11, 2015 by calling (866) 512-0461 (password 6929).
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 FCA US (formerly 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.
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 peerless automotive retail experience through our customer-focused sales and service processes. Owning and operating
new vehicle franchises, which sell
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.autonationdrive.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.
Note: All-time record refers to records based on automotive retail operations, as compared to adjusted results reported in prior periods. Franchise counts include Ram franchises, which were not counted as separate franchises in prior news releases.
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 strategic initiatives and 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; our ability to obtain manufacturer approval for pending acquisitions; economic conditions, including conditions in the credit markets and changes in interest rates; our ability to maintain and enhance our retail brands and reputation and to attract consumers to our own digital channels; 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; restrictions imposed by vehicle manufacturers; the resolution of legal and administrative proceedings; regulatory factors affecting our business, including fuel economy requirements; our ability to identify open 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.
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.
UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENTS
($ in millions, except per share data)
Three Months Ended September 30,
Nine Months Ended September 30,
Parts and service
Finance and insurance, net
Cost of sales:
Total cost of sales
Selling, general, and administrative expenses
Depreciation and amortization
Other income, net
Non-operating income (expense) items:
Floorplan interest expense
Other interest expense
Other income (loss), net
Income from continuing operations before income taxes
Income tax provision
Loss from discontinued operations, net of income taxes
Diluted earnings (loss) per share*:
Weighted average common shares outstanding
Common shares outstanding, net of treasury stock, at period end
Earnings per share amounts are calculated discretely and therefore may not add up to the total due to rounding.
UNAUDITED SUPPLEMENTARY DATA
($ in millions, except per vehicle data)
Retail used vehicle
Total variable operations
Total gross profit
Retail vehicle unit sales:
Revenue per vehicle retailed:
Gross profit per vehicle retailed:
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.
Revenue mix percentages:
Gross profit mix percentages:
Operating items as a percentage of revenue:
Used vehicle - retail
Selling, general and administrative expenses
Operating items as a percentage of total gross profit:
($ in millions)
Segment Operating Highlights
Corporate and other
Total consolidated revenue
Add: Floorplan interest expense
* 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:
Brand Mix - New Vehicle Retail Units Sold
Chevrolet, Buick, Cadillac, GMC
Chrysler, Jeep, Dodge
Other premium luxury (Land Rover, Porsche)
Premium Luxury total
UNAUDITED SUPPLEMENTARY DATA, Continued
Capital Expenditures / Stock Repurchases
Cash paid for acquisitions
Proceeds from exercises of stock options
Aggregate purchase price
Shares repurchased (in millions)
Floorplan Assistance and Expense
Floorplan assistance earned (included in cost of sales)
New vehicle floorplan interest expense
Net new vehicle inventory carrying benefit
Balance Sheet and Other Highlights
December 31, 2014
Cash and cash equivalents
Total floorplan notes payable
New days supply (industry standard of selling days)
Used days supply (trailing calendar month days)
Key Credit Agreement Covenant Compliance Calculations
less than or equal to
Includes accrued construction in progress and excludes property acquired under capital leases.
Excludes capital leases.
Calculated in accordance with our credit agreement as filed with the SEC.
Comparable Basis Reconciliations*
Diluted Earnings Per Share**
Discontinued operations, net of income taxes
From continuing operations, as reported
Net gain related to business/property dispositions
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 due to rounding.
UNAUDITED SAME STORE DATA
The above information was disclosed in a filing to the SEC. To see this filing in its entirety, click here. AutoNation next reports earnings on October 28, 2015.
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