AutoNation Reports 2009 Fourth Quarter and Full Year Results
FORT LAUDERDALE, Fla., Feb. 11 /PRNewswire-FirstCall/ --
- Fourth quarter revenue increased 8%, new vehicle unit sales rose 7% over the prior year
- Fourth quarter adjusted EPS from continuing operations more than doubled compared to the prior year to $0.29 from $0.13
- Fourth quarter GAAP EPS from continuing operations was $0.36 versus $0.42 for the prior year
- Despite a U.S. industry new vehicle sales decline of 22% in 2009, AutoNation's full-year adjusted EPS increased 14% to $1.15 from $1.01 for the prior year
- Full-year GAAP EPS was $1.32 compared to a loss per share of $6.82 for the prior year
AutoNation, Inc. (NYSE: AN), America's largest automotive retailer, today reported 2009 fourth quarter GAAP net income from continuing operations of $62 million or $0.36 per share, compared to $73 million or $0.42 per share for the prior year. In the fourth quarter of 2009, the Company had a benefit from a tax adjustment of $13 million or $0.07 per share. In the fourth quarter of 2008, the Company had a net benefit of $51 million or $0.29 per share, related primarily to favorable tax items and gains on the repurchase of senior notes. After adjusting for these items as disclosed in the attached financial tables, adjusted net income from continuing operations for the 2009 fourth quarter was $50 million or $0.29 per share, compared to $23 million or $0.13 per share for the prior year, a 123% increase on a per-share basis.
(Logo: http://www.newscom.com/cgi-bin/prnh/20001017/AUTONATIONLOGO )
Fourth quarter 2009 revenue totaled $2.8 billion, compared to $2.6 billion in the year-ago period, an 8% increase, driven primarily by stronger new vehicle unit sales which increased 7%. In the fourth quarter, total U.S. industry new vehicle retail unit sales increased 6%, based on CNW Research data.
Commenting on the fourth quarter, Mike Jackson, Chairman and Chief Executive Officer, said, "We delivered solid profitability in the fourth quarter, achieved our first year-over-year increase in new vehicle unit sales since the second quarter of 2005, and maintained the benefits of our actions taken in response to the economic downturn. By lowering our structural costs and debt levels and more efficiently managing our inventory, we were able to deliver solid EPS growth in a very difficult environment."
AutoNation has three operating segments: Domestic, Import, and Premium Luxury. The Domestic segment is comprised of stores that sell vehicles manufactured by General Motors, Ford, and Chrysler; the Import segment is comprised of stores that sell vehicles manufactured primarily by Toyota, Honda, and Nissan; and the Premium Luxury segment is comprised of stores that sell vehicles manufactured primarily by Mercedes, BMW, and Lexus. Segment results for the fourth quarter were as follows:
- Domestic - Domestic segment income (1) was $26 million compared to year-ago segment income of $16 million. Fourth quarter Domestic retail new vehicle unit sales increased 6%.
- Import - Import segment income was $41 million compared to year-ago segment income of $21 million. Fourth quarter Import retail new vehicle unit sales increased 8%.
- Premium Luxury - Premium Luxury segment income was $48 million compared to year-ago segment income of $39 million. Fourth quarter Premium Luxury retail new vehicle unit sales increased 8%.
(1) Segment income is defined as operating income less floorplan interest expense.
For the full year ended December 31, 2009, the Company reported GAAP net income from continuing operations of $234 million or $1.32 per share, compared to a GAAP net loss from continuing operations of $1.2 billion or $6.82 per share for the prior year. After adjusting for certain items (including the goodwill and franchise rights impairment charges recorded in the prior year) as disclosed in the attached financial tables, adjusted net income from continuing operations for the full year ended December 31, 2009 was $204 million or $1.15 per share, compared to $180 million or $1.01 per share for the prior year. The Company's revenue for the full year ended December 31, 2009 totaled $10.8 billion, down 20% compared to $13.4 billion in the prior year.
Jackson also stated, "We responded to the dramatic decline in industry volumes, the Chrysler and GM bankruptcies, the credit crisis and staggering unemployment and delivered a full-year adjusted EPS increase of 14%. We are optimistic for the long-term prospects of the auto industry based on the successful restructuring of the domestic auto industry, the move to a demand-pull system and the rationalization of the dealer network. "We agree with the view that volumes will be higher this year. Our planning assumption for 2010 industry new unit sales is 11.5 million units with a gradual increase in the selling rate over the course of the year."
The fourth quarter conference call may be accessed at 11:00 a.m. Eastern Time today by telephone at 888-769-8515 (pass code: AutoNation) or via the Internet (audio webcast) at http://www.AutoNation.com by clicking on the "About AutoNation" and then "Webcasts & Presentations." A playback of the conference call will be available after 12:00 (noon) p.m. Eastern Time February 11, 2010 through February 19, 2010 by calling 866-487-7599 (pass code: 75300).
About AutoNation, Inc.
AutoNation, Inc., headquartered in Fort Lauderdale, Fla., is America's largest automotive retailer and has been named America's Most Admired Automotive Retailer by FORTUNE Magazine in five of the last seven years. A component of the Standard and Poor's 500 Index, AutoNation owns and operates 246 new vehicle franchises in 15 states. For additional information, please visit http://corp.AutoNation.com or www.AutoNation.com.
FORWARD LOOKING STATEMENTS
This news release contains both historical and forward-looking statements. All statements other than statements of historical fact, including statements that describe our objectives, plans or goals, are, or may be deemed to be, forward-looking statements under the securities laws. These forward-looking statements reflect our current expectations concerning future results and events, and they involve known and unknown risks, uncertainties and other factors that are difficult to predict and may cause our actual results, performance or achievements to be materially different from any future results, performance and achievements expressed or implied by these statements. These risks, uncertainties and other factors include, among others: economic conditions generally; conditions in the credit markets and changes in interest rates; assumptions and expectations relating to financial covenants contained in our debt agreements; the success and financial viability of vehicle manufacturers and distributors with which we hold franchises; factors affecting our goodwill impairment testing; natural disasters and other adverse weather events; restrictions imposed by vehicle manufacturers; the resolution of legal and administrative proceedings; regulatory factors affecting our business; and other factors described in our news releases and filings made under the securities laws, including, among others, our Annual Reports on Form 10-K and in our Quarterly Reports on Form 10-Q. 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 net income and diluted earnings per share from continuing operations, adjusted in each case to exclude certain items disclosed in the attached financial tables. As required by SEC rules, the Company has provided reconciliations of these measures to the most directly comparable GAAP measures, which are set forth in the attachments to this release. The Company believes that each of the foregoing non-GAAP financial measures improves the transparency of the Company's disclosure, provides 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 improves the period-to-period comparability of the Company's results from its core business operations.
AUTONATION, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2009 2008 2009 2008
---- ---- ---- ----
Revenue:
New vehicle $1,554.4 $1,366.0 $5,713.0 $7,405.6
Used vehicle 639.3 602.7 2,508.8 3,148.9
Parts and service 521.4 534.7 2,137.4 2,300.6
Finance and
insurance, net 89.3 80.6 351.2 460.2
Other 10.6 13.0 47.4 61.1
---- ---- ---- ----
Total revenue 2,815.0 2,597.0 10,757.8 13,376.4
------- ------- -------- --------
Cost of sales:
New vehicle 1,448.0 1,277.5 5,326.8 6,916.3
Used vehicle 591.3 556.8 2,278.9 2,885.0
Parts and service 294.1 301.3 1,202.7 1,297.8
Other 4.3 5.3 20.6 26.5
--- --- ---- ----
Total cost of
sales 2,337.7 2,140.9 8,829.0 11,125.6
------- ------- ------- --------
Gross profit 477.3 456.1 1,928.8 2,250.8
Selling, general
and administrative
expenses 364.5 360.2 1,464.4 1,698.4
Depreciation
and amortization 19.0 21.0 77.5 85.0
Goodwill impairment - - - 1,610.0
Franchise rights
impairment - - 1.5 127.4
Other expenses
(income), net (1.2) 6.8 (24.8) 9.7
---- --- ----- ---
Operating income
(loss) 95.0 68.1 410.2 (1,279.7)
Floorplan interest
expense (9.3) (20.0) (36.1) (81.1)
Other interest
expense (10.2) (20.1) (42.6) (89.4)
Gain on senior
note repurchases - 39.2 13.0 51.3
Interest income 0.2 0.7 1.1 2.2
Other gains
(losses), net 1.4 (1.8) 5.4 (4.7)
--- ---- --- ----
Income (loss)
from continuing
operations
before income
taxes 77.1 66.1 351.0 (1,401.4)
Income tax provision
(benefit) 14.7 (7.3) 116.8 (189.0)
---- ---- ----- ------
Net income (loss)
from continuing
operations 62.4 73.4 234.2 (1,212.4)
Loss from discontinued
operations, net of
income taxes (0.7) (6.3) (36.2) (30.7)
---- ---- ----- -----
Net income (loss) $61.7 $67.1 $198.0 $(1,243.1)
===== ===== ====== =========
Diluted earnings
(loss) per share:
Continuing
operations $0.36 $0.42 $1.32 $(6.82)
Discontinued
operations $(0.00) $(0.04) $(0.20) $(0.17)
Net income (loss) $0.35 $0.38 $1.12 $(6.99)
Weighted average
common shares
outstanding 174.2 176.8 177.3 177.8
Common shares
outstanding,
net of treasury
stock, at
December 31 171.7 176.9 171.7 176.9
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions, except per vehicle data)
Operating Highlights Three Months Ended December 31,
-------------------- --------------------------------------------------
2009 2008 $Variance %Variance
---- ---- --------- ---------
Revenue:
New vehicle $1,554.4 $1,366.0 $188.4 13.8
Retail used vehicle 559.0 523.8 35.2 6.7
Wholesale 80.3 78.9 1.4 1.8
---- ---- ---
Used vehicle 639.3 602.7 36.6 6.1
----- ----- ----
Parts and service 521.4 534.7 (13.3) (2.5)
Finance and
insurance, net 89.3 80.6 8.7 10.8
Other 10.6 13.0 (2.4)
---- ---- ----
Total revenue $2,815.0 $2,597.0 $218.0 8.4
======== ======== ======
Gross profit:
New vehicle $106.4 $88.5 $17.9 20.2
Retail used vehicle 48.2 49.7 (1.5) (3.0)
Wholesale (0.2) (3.8) 3.6
---- ---- ---
Used vehicle 48.0 45.9 2.1 4.6
---- ---- ---
Parts and service 227.3 233.4 (6.1) (2.6)
Finance and insurance 89.3 80.6 8.7 10.8
Other 6.3 7.7 (1.4)
--- --- ----
Total gross profit 477.3 456.1 21.2 4.6
Selling, general and
administrative expenses 364.5 360.2 (4.3) (1.2)
Depreciation and
amortization 19.0 21.0 2.0
Goodwill impairment - - -
Franchise rights impairment - - -
Other expenses
(income), net (1.2) 6.8 8.0
---- --- ---
Operating income (loss) 95.0 68.1 26.9 39.5
Floorplan interest
expense (9.3) (20.0) 10.7
Other interest expense (10.2) (20.1) 9.9
Gain on senior note
repurchases - 39.2 (39.2)
Interest income 0.2 0.7 (0.5)
Other gains
(losses), net 1.4 (1.8) 3.2
--- ---- ---
Income (loss) from
continuing operations
before income taxes $77.1 $66.1 $11.0 16.6
===== ===== =====
Retail vehicle unit sales:
New 46,532 43,379 3,153 7.3
Used 32,528 33,731 (1,203) (3.6)
------ ------ ------
79,060 77,110 1,950 2.5
====== ====== =====
Revenue per vehicle
retailed:
New $33,405 $31,490 $1,915 6.1
Used $17,185 $15,529 $1,656 10.7
Gross profit per
vehicle retailed:
New $2,287 $2,040 $247 12.1
Used $1,482 $1,473 $9 0.6
Finance and
insurance $1,130 $1,045 $85 8.1
Operating Highlights Twelve Months Ended December 31,
-------------------- ---------------------------------------------------
2009 2008 $Variance %Variance
---- ---- --------- ---------
Revenue:
New vehicle $5,713.0 $7,405.6 $(1,692.6) (22.9)
Retail used
vehicle 2,204.7 2,653.2 (448.5) (16.9)
Wholesale 304.1 495.7 (191.6) (38.7)
----- ----- ------
Used vehicle 2,508.8 3,148.9 (640.1) (20.3)
------- ------- ------
Parts and service 2,137.4 2,300.6 (163.2) (7.1)
Finance and
insurance, net 351.2 460.2 (109.0) (23.7)
Other 47.4 61.1 (13.7)
---- ---- -----
Total revenue $10,757.8 $13,376.4 $(2,618.6) (19.6)
========= ========= =========
Gross profit:
New vehicle $386.2 $489.3 $(103.1) (21.1)
Retail used vehicle 225.2 270.7 (45.5) (16.8)
Wholesale 4.7 (6.8) 11.5
--- ---- ----
Used vehicle 229.9 263.9 (34.0) (12.9)
----- ----- -----
Parts and service 934.7 1,002.8 (68.1) (6.8)
Finance and insurance 351.2 460.2 (109.0) (23.7)
Other 26.8 34.6 (7.8)
---- ---- ----
Total gross profit 1,928.8 2,250.8 (322.0) (14.3)
Selling, general
and administrative
expenses 1,464.4 1,698.4 234.0 13.8
Depreciation and
amortization 77.5 85.0 7.5
Goodwill impairment - 1,610.0 1,610.0
Franchise rights
impairment 1.5 127.4 125.9
Other expenses
(income), net (24.8) 9.7 34.5
----- --- ----
Operating income
(loss) 410.2 (1,279.7) 1,689.9 NM
Floorplan interest
expense (36.1) (81.1) 45.0
Other interest expense (42.6) (89.4) 46.8
Gain on senior
note repurchases 13.0 51.3 (38.3)
Interest income 1.1 2.2 (1.1)
Other gains
(losses), net 5.4 (4.7) 10.1
--- ---- ----
Income (loss) from
continuing
operations before
income taxes $351.0 $(1,401.4) $1,752.4 NM
====== ========= ========
Retail vehicle
unit sales:
New 183,372 243,953 (60,581) (24.8)
Used 135,302 169,031 (33,729) (20.0)
------- ------- -------
318,674 412,984 (94,310) (22.8)
======= ======= =======
Revenue per vehicle
retailed:
New $31,155 $30,357 $798 2.6
Used $16,295 $15,697 $598 3.8
Gross profit per
vehicle retailed:
New $2,106 $2,006 $100 5.0
Used $1,664 $1,601 $63 3.9
Finance and
insurance $1,102 $1,114 $(12) (1.1)
Three Months Ended Twelve Months Ended
Operating Percentages December 31, December 31,
--------------------- ------------------ -------------------
2009 (%) 2008 (%) 2009 (%) 2008 (%)
------- ------- ------- -------
Revenue mix percentages:
New vehicle 55.2 52.6 53.1 55.4
Used vehicle 22.7 23.2 23.3 23.5
Parts and service 18.5 20.6 19.9 17.2
Finance and
insurance, net 3.2 3.1 3.3 3.4
Other 0.4 0.5 0.4 0.5
--- --- --- ---
100.0 100.0 100.0 100.0
===== ===== ===== =====
Gross profit mix
percentages:
New vehicle 22.3 19.4 20.0 21.7
Used vehicle 10.1 10.1 11.9 11.7
Parts and service 47.6 51.2 48.5 44.6
Finance and insurance 18.7 17.7 18.2 20.4
Other 1.3 1.6 1.4 1.6
--- --- --- ---
100.0 100.0 100.0 100.0
===== ===== ===== =====
Operating items as a
percentage of revenue:
Gross profit:
New vehicle 6.8 6.5 6.8 6.6
Used vehicle -
retail 8.6 9.5 10.2 10.2
Parts and service 43.6 43.7 43.7 43.6
Total 17.0 17.6 17.9 16.8
Selling, general
and administrative
expenses 12.9 13.9 13.6 12.7
Operating income
(loss) 3.4 2.6 3.8 NM
Operating items as a
percentage of total
gross profit:
Selling, general
and administrative
expenses 76.4 79.0 75.9 75.5
Operating income
(loss) 19.9 14.9 21.3 NM
NM = Not Meaningful
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions, except per vehicle data)
Segment Operating Highlights Three Months Ended December 31,
---------------------------- ---------------------------------------------
2009 2008 $Variance %Variance
---- ---- --------- ---------
Revenue:
Domestic $892.8 $847.6 $45.2 5.3
Import 1,035.0 948.4 86.6 9.1
Premium luxury 859.9 778.8 81.1 10.4
Corporate and other 27.3 22.2 5.1 23.0
---- ---- ---
Total revenue $2,815.0 $2,597.0 $218.0 8.4
======== ======== ======
*Segment income (loss)
Domestic $25.5 $15.5 $10.0 64.5
Import 41.2 20.7 20.5 99.0
Premium luxury 48.4 38.6 9.8 25.4
Corporate and other (29.4) (26.7) (2.7)
----- ----- ----
Total segment income (loss) 85.7 48.1 37.6 78.2
Add: Floorplan interest
expense 9.3 20.0 (10.7)
Operating income (loss) $95.0 $68.1 $26.9 39.5
===== ===== =====
* Segment income (loss) is defined as operating income net of floorplan
interest expense
Retail new vehicle
unit sales:
Domestic 13,735 12,904 831 6.4
Import 23,601 21,959 1,642 7.5
Premium luxury 9,196 8,516 680 8.0
----- ----- ---
46,532 43,379 3,153 7.3
====== ====== =====
Segment Operating Highlights Twelve Months Ended December 31,
---------------------------- ---------------------------------------------
2009 2008 $Variance %Variance
---- ---- --------- ---------
Revenue:
Domestic $3,450.2 $4,356.6 $(906.4) (20.8)
Import 4,126.0 5,280.5 (1,154.5) (21.9)
Premium luxury 3,073.1 3,629.5 (556.4) (15.3)
Corporate and other 108.5 109.8 (1.3) (1.2)
----- ----- ----
Total revenue $10,757.8 $13,376.4 $(2,618.6) (19.6)
========= ========= =========
*Segment income (loss)
Domestic $105.5 $109.1 $(3.6) (3.3)
Import 175.1 184.5 (9.4) (5.1)
Premium luxury 175.5 183.7 (8.2) (4.5)
Corporate and other (82.0) (1,838.1) 1,756.1
----- -------- -------
Total segment income
(loss) 374.1 (1,360.8) 1,734.9 NM
Add: Floorplan interest
expense 36.1 81.1 (45.0)
Operating income (loss) $410.2 $(1,279.7) $1,689.9 NM
====== ========= ========
* Segment income (loss) is defined as operating income net of floorplan
interest expense
Retail new vehicle
unit sales:
Domestic 53,435 71,163 (17,728) (24.9)
Import 98,015 132,662 (34,647) (26.1)
Premium luxury 31,922 40,128 (8,206) (20.4)
------ ------ ------
183,372 243,953 (60,581) (24.8)
======= ======= =======
Brand Mix - New Vehicle Retail Units Sold
-----------------------------------------
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------- -----------------------
2009 (%) 2008 (%) 2009 (%) 2008 (%)
-------- -------- -------- --------
Domestic:
Ford, Lincoln-
Mercury 15.0 15.1 14.7 13.6
Chevrolet,
Pontiac, Buick,
Cadillac, GMC 12.4 11.1 11.4 11.9
Chrysler, Jeep,
Dodge 2.1 3.5 3.0 3.7
--- --- --- ---
Domestic total 29.5 29.7 29.1 29.2
---- ---- ---- ----
Import:
Honda 12.3 12.9 14.1 14.2
Toyota 19.6 21.6 20.0 22.0
Nissan 12.2 9.8 12.6 12.3
Other imports 6.6 6.4 6.8 5.9
--- --- --- ---
Import total 50.7 50.7 53.5 54.4
---- ---- ---- ----
Premium Luxury:
Mercedes 9.3 8.6 8.3 7.2
BMW 5.3 6.0 4.7 4.9
Lexus 3.6 3.1 2.8 2.9
Other premium
luxury (Land Rover,
Porsche) 1.6 1.9 1.6 1.4
--- --- --- ---
Premium Luxury
total 19.8 19.6 17.4 16.4
---- ---- ---- ----
100.0 100.0 100.0 100.0
===== ===== ===== =====
NM = Not Meaningful
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA, Continued
($ in millions, except per share data)
Capital Expenditures / Stock Three Months Ended Twelve Months Ended
and Debt Repurchases December 31, December 31,
---------------------------- ------------------ -------------------
2009 2008 2009 2008
---- ---- ---- ----
Capital expenditures $35.0 $13.7 $75.5 $110.4
Acquisitions $- $2.8 $0.2 $32.2
Proceeds from exercises of
stock options $1.3 $- $24.8 $1.0
Senior note repurchases
(aggregate principal) $- $144.8 $88.4 $232.9
Stock repurchases:
Aggregate purchase price $69.9 $- $136.1 $54.1
Shares repurchased (in
millions) 4.0 - 7.7 3.8
Floorplan Assistance Three Months Ended Twelve Months Ended
and Expense December 31, December 31,
-------------------- ------------------------ ------------------------
2009 2008 Variance 2009 2008 Variance
---- ---- -------- ---- ---- --------
Floorplan assistance
earned (included
in cost of sales) $13.0 $11.2 $1.8 $47.8 $65.5 $(17.7)
Floorplan interest
expense (new
vehicles) (8.7) (18.5) 9.8 (33.9) (77.4) 43.5
---- ----- --- ----- ----- ----
Net inventory
carrying benefit
(cost) $4.3 $(7.3) $11.6 $13.9 $(11.9) $25.8
==== ===== ===== ===== ====== =====
Balance Sheet and Other Highlights December 31, 2009 December 31, 2008
---------------------------------- ----------------- -----------------
Cash and cash equivalents $173.7 $110.2
Inventory $1,408.3 $1,758.1
Total floorplan notes payable $1,388.0 $1,813.5
Non-vehicle debt $1,112.6 $1,258.9
Equity $2,303.2 $2,198.1
New days supply (industry
standard of selling days,
including fleet) 54 days 83 days
Used days supply (trailing 30 days) 41 days 30 days
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA, Continued
($ in millions, except per share data)
Comparable Basis Reconciliations*
---------------------------------
Three Months Ended December 31,
-----------------------------------------------------
Net Income (Loss) Diluted Earnings (Loss) Per Share
------------------ ---------------------------------
2009 2008 2009 2008
---- ---- ---- ----
As reported $61.7 $67.1 $0.35 $0.38
Discontinued
operations, net
of income taxes 0.7 6.3 $0.00 $0.04
--- ---
From continuing
operations,
as reported 62.4 73.4 $0.36 $0.42
Income tax
adjustments (12.7) (31.9) $(0.07) $(0.18)
Gain on senior
note repurchases - (24.1) $- $(0.14)
Property and other
impairments** - 5.5 $- $0.03
--- ---
Adjusted $49.7 $22.9 $0.29 $0.13
===== =====
Twelve Months Ended December 31,
------------------------------------------------------
Net Income (Loss) Diluted Earnings (Loss) Per Share
------------------- ---------------------------------
2009 2008 2009 2008
---- ---- ---- ----
As reported $198.0 $(1,243.1) $1.12 $(6.99)
Discontinued
operations, net
of income taxes 36.2 30.7 $0.20 $0.17
---- ----
From continuing
operations,
as reported 234.2 (1,212.4) $1.32 $(6.82)
Income tax
adjustments (12.7) (31.9) $(0.07) $(0.18)
Net gain on
asset sales
and dispositions (10.4) - $(0.06) $-
Gain on senior
note repurchases (8.1) (31.5) $(0.05) $(0.18)
Property and other
impairments** 1.1 5.5 $0.01 $0.03
Impairment of
goodwill and
franchise
rights*** - 1,447.4 $- $8.14
Stock compensation
expense adjustment - 3.2 $- $0.02
--- ---
Adjusted $204.1 $180.3 $1.15 $1.01
====== ======
* Please refer to the "Non-GAAP Financial Measures" section of the Press
Release.
** Property and other impairments for the three months ended March 31,
2009 totaled $4.8 million after-tax, of which $4.5 million has been
reclassified to loss from discontinued operations since they related
to dealerships classified as discontinued operations during 2009.
Property and other impairments for the three and twelve months ended
December 31, 2008 totaled $7.6 million after-tax, of which $2.0
million has been reclassified to loss from discontinued operations
since they related to dealerships classified as discontinued
operations during 2009.
*** Goodwill and franchise impairments for the twelve months ended
December 31, 2008, totaled $1.46 billion after-tax. Franchise
impairments of $11.7 million after-tax during the twelve months
ended December 31, 2008, have been reclassified to loss from
discontinued operations since they related to dealerships classified
as discontinued operations during 2009.
AUTONATION, INC.
UNAUDITED SAME STORE DATA
($ in millions, except per vehicle data)
Operating Highlights Three Months Ended December 31,
-------------------- ---------------------------------------------------
2009 2008 $Variance %Variance
---- ---- --------- ---------
Revenue:
New vehicle $1,554.4 $1,357.7 $196.7 14.5
Retail used
vehicle 559.1 516.9 42.2 8.2
Wholesale 80.3 77.5 2.8 3.6
---- ---- ---
Used vehicle 639.4 594.4 45.0 7.6
Parts and
service 521.1 528.9 (7.8) (1.5)
Finance and
insurance, net 89.3 80.1 9.2 11.5
Other 10.5 11.4 (0.9)
---- ---- ----
Total revenue $2,814.7 $2,572.5 $242.2 9.4
======== ======== ======
Gross profit:
New vehicle $106.5 $88.1 $18.4 20.9
Retail used
vehicle 48.3 48.9 (0.6) (1.2)
Wholesale (0.1) (3.7) 3.6
---- ---- ---
Used vehicle 48.2 45.2 3.0 6.6
Parts and
service 227.1 231.3 (4.2) (1.8)
Finance and
insurance 89.3 80.1 9.2 11.5
Other 6.2 7.3 (1.1)
--- --- ----
Total gross profit $477.3 $452.0 $25.3 5.6
====== ====== =====
Retail vehicle
unit sales:
New 46,532 43,125 3,407 7.9
Used 32,528 33,213 (685) (2.1)
------ ------ ----
79,060 76,338 2,722 3.6
====== ====== =====
Revenue per
vehicle
retailed:
New $33,405 $31,483 $1,922 6.1
Used $17,188 $15,563 $1,625 10.4
Gross profit
per vehicle
retailed:
New $2,289 $2,043 $246 12.0
Used $1,485 $1,472 $13 0.9
Finance and
insurance $1,130 $1,049 $81 7.7
Operating Highlights Twelve Months Ended December 31,
-------------------- --------------------------------------------------
2009 2008 $Variance %Variance
---- ---- --------- ---------
Revenue:
New vehicle $5,678.9 $7,353.8 $(1,674.9) (22.8)
Retail used
vehicle 2,188.7 2,616.5 (427.8) (16.4)
Wholesale 300.1 487.3 (187.2) (38.4)
----- ----- ------
Used vehicle 2,488.8 3,103.8 (615.0) (19.8)
Parts and
service 2,126.4 2,266.0 (139.6) (6.2)
Finance and
insurance, net 349.7 456.4 (106.7) (23.4)
Other 45.4 57.6 (12.2)
---- ---- -----
Total revenue $10,689.2 $13,237.6 $(2,548.4) (19.3)
========= ========= =========
Gross profit:
New vehicle $384.5 $486.4 $(101.9) (20.9)
Retail used
vehicle 223.1 266.2 (43.1) (16.2)
Wholesale 4.9 (6.5) 11.4
--- ---- ----
Used vehicle 228.0 259.7 (31.7) (12.2)
Parts and
service 930.0 990.9 (60.9) (6.1)
Finance and
insurance 349.7 456.4 (106.7) (23.4)
Other 26.1 33.8 (7.7)
---- ---- ----
Total gross
profit $1,918.3 $2,227.2 $(308.9) (13.9)
======== ======== =======
Retail vehicle
unit sales:
New 182,635 242,384 (59,749) (24.7)
Used 134,422 166,380 (31,958) (19.2)
------- ------- -------
317,057 408,764 (91,707) (22.4)
======= ======= =======
Revenue per
vehicle
retailed:
New $31,094 $30,339 $755 2.5
Used $16,282 $15,726 $556 3.5
Gross profit
per vehicle
retailed:
New $2,105 $2,007 $98 4.9
Used $1,660 $1,600 $60 3.8
Finance and
insurance $1,103 $1,117 $(14) (1.3)
Three Months Ended Twelve Months Ended
Operating Percentages December 31, December 31,
--------------------- ------------------ -------------------
2009 (%) 2008 (%) 2009 (%) 2008 (%)
------- ------- ------- -------
Revenue mix percentages:
New vehicle 55.2 52.8 53.1 55.6
Used vehicle 22.7 23.1 23.3 23.4
Parts and service 18.5 20.6 19.9 17.1
Finance and
insurance, net 3.2 3.1 3.3 3.4
Other 0.4 0.4 0.4 0.5
--- --- --- ---
100.0 100.0 100.0 100.0
===== ===== ===== =====
Gross profit mix
percentages:
New vehicle 22.3 19.5 20.0 21.8
Used vehicle 10.1 10.0 11.9 11.7
Parts and service 47.6 51.2 48.5 44.5
Finance and
insurance 18.7 17.7 18.2 20.5
Other 1.3 1.6 1.4 1.5
--- --- --- ---
100.0 100.0 100.0 100.0
===== ===== ===== =====
Operating items
as a percentage
of revenue:
Gross Profit:
New vehicle 6.9 6.5 6.8 6.6
Used vehicle -
retail 8.6 9.5 10.2 10.2
Parts and service 43.6 43.7 43.7 43.7
Total 17.0 17.6 17.9 16.8
AUTONATION, INC.
KEY CREDIT AGREEMENT COVENANT COMPLIANCE CALCULATIONS
December 31, 2009
($ millions)
Income Statement information for the last twelve months
(January 1, 2009 - December 31, 2009):
Net income (loss) from continuing operations $234.2
Floorplan and other interest expense 78.7
Income tax provision (benefit) 116.8
Depreciation and amortization 77.5
Stock-based compensation expense (SFAS No. 123R) 13.5
Impairment charges (including goodwill, franchise rights,
and long-lived assets) 3.3
--------
EBITDA 524.0
Floorplan interest expense (36.1)
--------
Adjusted EBITDA $487.9
========
As of December 31, 2009:
Funded indebtedness (primarily comprised of current and
long-term debt and letters of credit) $1,177.8
Vehicle secured indebtedness (floorplan payables) 1,388.0
--------
Funded indebtedness including floorplan 2,565.8
Shareholders' equity 2,303.2
--------
Total capitalization including floorplan $4,869.0
========
Ratio of funded indebtedness/
Adjusted EBITDA 2.41
Covenant less than 2.75
Ratio of funded indebtedness including floorplan/
Total capitalization including floorplan 52.7%
Covenant less than 65.0%
SOURCE AutoNation, Inc.
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