- EPS from continuing operations an all-time record(1) $0.68, up 21% compared to the year-ago period
- Total revenue of $4.1 billion, up 12% compared to the year-ago period, increasing across all major business sectors; operating income of $169 million, an increase of 14% compared to the year-ago period
- AutoNation to acquire Honda and Hyundai stores in Phoenix, Arizona and a Toyota store in Dallas, Texas with annual revenues of approximately $250 million
FORT LAUDERDALE, Fla. — AutoNation, Inc. (NYSE: AN), America’s largest automotive retailer, today reported 2013 first quarter net income from continuing operations of $83 million, or $0.68 per share, compared to net income from continuing operations of $74 million, or $0.56 per share, for the same period in the prior year, a 21% improvement on a per-share basis.
2013 first quarter revenue totaled $4.1 billion, compared to $3.7 billion in the year-ago period, an increase of 12%, driven by strong performance in all of our business sectors – new vehicles, used vehicles, parts and service, and finance and insurance. AutoNation’s retail new vehicle unit sales increased 9% overall and 6% on a same store basis.
Mike Jackson, Chairman and Chief Executive Officer, said, “AutoNation delivered solid double-digit growth in operating income, which drove a 21% increase in EPS from continuing operations in the first quarter of 2013, as we increased profitability in each of our business sectors. We continue to expect industry new vehicle sales to be approximately mid-15 million units in 2013.”
Segment results(2) for the first quarter of 2013 were as follows:
- Domestic – Domestic segment income(3) was $59 million compared to year-ago segment income of $50 million.
- Import – Import segment income(3) was $71 million compared to year-ago segment income of $62 million.
- Premium Luxury – Premium Luxury segment income(3) was $69 million compared to year-ago segment income of $59 million.
Regarding AutoNation’s rebranding strategy Mr. Jackson commented, “Our coast-to-coast rebranding rollout is on track, and as of March 31st, 30% of our Domestic and Import units were sold under the rebranded AutoNation name.”
AutoNation also announced that it has signed agreements to acquire SanTan Honda Superstore and Hyundai of Tempe in Phoenix, and Don Davis Toyota Scion in Dallas. The annual revenue for all three stores is approximately $250 million and together these stores sold approximately 8,300 new and used retail units in 2012. The acquisitions are subject to manufacturer approval and other customary closing conditions and are expected to be completed in the second quarter of 2013.
Mr. Jackson stated, “These acquisitions align with our strategy to offer all of our core vehicle brands to consumers within our key markets. We are pleased to add Honda and Hyundai franchises to our Phoenix platform. The franchises are in attractive automotive retail locations and facilities, and the acquisitions will enhance our franchise mix in Phoenix. We are also pleased to add a Toyota franchise to our high-performing Dallas-Fort Worth platform.”
The first quarter conference call may be accessed by telephone at (888) 769-8515 (password: AutoNation) at 11:00 a.m. Eastern Time or on AutoNation’s investor relations website at investors.autonation.com.
The webcast will also be available on our website under “Events & Presentations” following the call. A playback of the conference call will be available after 1:00 p.m. Eastern Time on April 18, 2013, through April 25, 2013 by calling (866) 418-8387 (password 75300).
(1) As compared to adjusted EPS from continuing operations in prior periods.
(2) 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, Nissan, and Hyundai; and the Premium Luxury segment is comprised of stores that sell vehicles manufactured primarily by Mercedes-Benz, BMW, Lexus, and Audi.
(3) Segment income for each of our segments is defined as operating income less floorplan interest expense.
About AutoNation, Inc.
AutoNation is transforming the automotive retail industry through bold leadership. We deliver a superior automotive retail experience through our customer-focused sales and service processes. Owning and operating 262 new vehicle franchises, which sell 32 new vehicle brands across 15 states, AutoNation is America’s largest automotive retailer, with state-of-the-art operations and the ability to leverage economies of scale that benefit the customer. As an indication of our leadership position in our industry, AutoNation is a component of the S&P 500 Index.
Please visit investors.autonation.com, www.autonation.com, www.twitter.com/autonation, www.twitter.com/CEOMikeJackson, www.facebook.com/autonation, and www.facebook.com/CEOMikeJackson, where AutoNation discloses additional information about the Company, its financial information (including sales), and its business.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Words such as “anticipates,” “expects,” “intends,” “goals,” “plans,” “believes,” “continues,” “may,” “will,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Statements regarding our expectations for the automotive retail industry, as well as statements that describe our objectives, goals, or plans, are forward-looking statements. Our forward-looking statements reflect our current expectations concerning future results and events, and they involve known and unknown risks, uncertainties and other factors that are difficult to predict and may cause our actual results, performance or achievements to be materially different from any future results, performance and achievements expressed or implied by these statements. These risks, uncertainties and other factors include, among others: economic conditions generally; conditions in the credit markets and changes in interest rates; the success and financial viability of vehicle manufacturers and distributors with which we hold franchises; factors affecting our goodwill and other intangible asset 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, our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. Forward-looking statements contained in this news release speak only as of the date of this news release, and we undertake no obligation to update these forward-looking statements to reflect subsequent events or circumstances.
NON-GAAP FINANCIAL MEASURES
This press release and the attached financial tables may contain certain non-GAAP financial measures as defined under SEC rules, such as adjusted net income and earnings per share from continuing operations, which exclude certain items disclosed in the attached financial tables. As required by SEC rules, the Company provides reconciliations of these measures to the most directly comparable GAAP measures. The Company believes that these non-GAAP financial measures improve the transparency of the Company’s disclosure, provide a meaningful presentation of the Company’s results from its core business operations excluding the impact of items not related to the Company’s ongoing core business operations, and improve the period-to-period comparability of the Company’s results from its core business operations.