- Q4 2023 GAAP EPS $5.04, and
adjusted EPS $5.02
- Q4 2023 Revenue $6.8 billion,
Full Year 2023 Revenue $26.9
billion
- Double-digit growth and record gross profit in After-Sales for
Q4 and full year
- Share repurchases of $151 million
in Q4 and $864 million full year
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 $6.8 billion, an increase of 1%
compared to the same period a year ago. Reconciliations of non-GAAP
financial measures are included in the attached financial
tables.
"Our results demonstrate the strength of our business model. We
enjoyed excellent new vehicle unit sales and competed well in a
dynamic used vehicle market, which together provided a platform
from which we delivered outstanding customer financial services
performance and superior after-sales growth. This performance was
underpinned by our Associates' focus on delivering an outstanding
customer experience," said Mike
Manley, AutoNation's Chief Executive Officer. "While 2024
will reflect a continued normalization of vehicle supply and demand
dynamics, we are excited to move forward, confident in our strong
balance sheet, and laser-focused on executing our operating plan.
We will continue to be a strong cash generator and allocate capital
in a prudent manner to maximize shareholder returns."
Operational Summary
Fourth quarter 2023 compared to
the year-ago period:
Selected GAAP
Financial Data
|
($ 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 %
|
- Revenue – $6.8
billion, an increase of 1% compared to the year-ago period.
Increased new vehicle unit sales and continued growth in
after-sales more than offset lower used vehicle unit sales.
- New Vehicle Revenue – $3.4
billion, an increase of $219
million or 7%.
- Used Vehicle Revenue – $1.9 billion, a decrease of $262 million or 12%.
- After-Sales Revenue – $1.1
billion, an increase of $113
million or 11%.
- Customer Financial Services Revenue –
$347 million, compared to
$345 million a year ago.
- Gross Profit - Totaled $1.2 billion, down $67
million from $1.3 billion a
year ago.
- New Vehicle Gross Profit - Decreased $102 million reflecting gross profit per vehicle
retailed of $3,653, compared to
$5,633 a year ago, partially offset
by an 8% increase in unit sales.
- Used Vehicle Gross Profit - Decreased
$27 million reflecting gross profit
per vehicle retailed of $1,455,
compared to $1,847 a year ago and a
4% decrease in unit sales.
- After-Sales Gross Profit - $540 million, an increase of $61 million or 13% from a year ago.
- Customer Financial Services Gross Profit –
Increased $2 million reflecting gross
profit per vehicle retailed of $2,674, compared to $2,703 a year ago, offset by a 2% increase in
retail unit sales.
- SG&A as a Percentage of Gross Profit – 66.5%,
or 65.1% on an adjusted basis, slightly higher than recent periods
reflecting investments in technology and growth initiatives.
Full Year 2023 compared to the year-ago period:
Selected GAAP
Financial Data
|
($ 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 %
|
- Revenue –$27
billion, essentially flat compared to the year-ago period as
increased new vehicle and after-sales revenue offset lower used
vehicle revenue.
- New Vehicle Revenue – $12.8 billion, an increase of $1.0 billion or 9%.
- Used Vehicle Revenue – $8.2 billion, a decrease of $1.5 billion or 15%.
- After-Sales Revenue – $4.5
billion, an increase of $433
million or 11%.
- Customer Financial Services Revenue –
$1.4 billion, a decrease of
$19 million or 1%.
- Gross Profit - Totaled $5.1 billion, a decrease of $134 million or 3%.
- New Vehicle Gross Profit - Decreased $305 million reflecting gross profit per vehicle
retailed of $4,342, compared to
$5,942 a year ago, partially offset
by a 6% increase in unit sales.
- Used Vehicle Gross Profit - Decreased
$45 million or 8% as unit sales
decreased by 9%.
- After-Sales Gross Profit - $2.1 billion, an increase of $239 million or 13%.
- Customer Financial Services Gross Profit -
Decreased $19 million reflecting a
slight increase in gross profit per vehicle retailed to
$2,736, offset by a 2% decrease in
retail unit sales.
- SG&A as a Percentage of Gross Profit – 63.4%,
or 62.6% on an adjusted basis, slightly higher than recent periods
reflecting investments in technology and growth initiatives.
Segment Results
Segment results(1) for the fourth quarter and full
year 2023 were as follows:
Fourth Quarter 2023 Segment Results
- Domestic - Domestic segment income(2)
was $74 million compared to the
year-ago segment income of $120
million, a decrease of 38%. Revenue of $1.8 billion was down 4%.
- Import - Import segment income(2) was
$137 million compared to the year-ago
segment income of $175 million, a
decrease of 22%. Revenue of $2.0
billion was up 7%.
- Premium Luxury - Premium Luxury segment
income(2) was $195 million
compared to the year-ago segment income of $247 million, a decrease of 21%. Revenue of
$2.6 billion was down 1%.
Full Year 2023 Segment Results
- Domestic - Domestic segment income(2)
was $415 million compared to the
year-ago segment income of $565
million, a decrease of 27%. Revenue of $7.6 billion was down 5%.
- Import - Import segment income(2) was
$635 million compared to the year-ago
segment income of $734 million, a
decrease of 14%. Revenue of $7.9
billion was up 2%.
- Premium Luxury - Premium Luxury segment
income(2) was $837 million
compared to the year-ago segment income of $969 million, a decrease of 14%. Revenue of
$10.3 billion was essentially
flat.
Capital Allocation, Liquidity, and Leverage
During 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 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,"
"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
Continuing
Operations 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 of
Gross 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
Continuing
Operations 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 of
Gross 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.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/autonation-reports-fourth-quarter-and-full-year-results-302060105.html
SOURCE AutoNation, Inc.