AutoNation Reports Fourth Quarter and Full Year Results
-- 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 Twelve Months Ended December
31, 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 Twelve Months Ended December
31, 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 Twelve Months Ended December
31, 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 Income Tax Effective Tax Net Income Diluted Earnings Per
Continuing Provision(2) Rate Share(3)
Operations Before
Income Taxes
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 11.2 6.8
$
$
valuation changes in deferred compensation(4)
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 11.2 6.8
valuation changes in deferred compensation
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 Income Tax Effective Tax Net Income Diluted Earnings Per
Continuing Provision(2) Rate Share(3)
Operations Before
Income Taxes
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 17.5 (18.3)
$
$
valuation changes in deferred compensation(4)
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 17.5 (18.3)
valuation changes in deferred compensation
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 Twelve Months Ended December
31, 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.
