AutoNation, Inc. Reports Record Fourth Quarter
Jackson Calls 2000 'Turnaround Year'
Same Store Margins Jump to Five Percent
FORT LAUDERDALE, Fla., Feb. 8 AutoNation, Inc.
today reported net income of $73.7 million, or $0.21 per share, for the three
months ended December 31, 2000, versus a loss of $403.1 million, or a loss of
$1.02 per share, for the same period in 1999. For the year ended December 31,
2000, the company reported net income of $329.9 million, or $0.91 per share, a
38 percent increase versus $0.66 per share in full-year 1999.
Results in the quarter include one-time items resulting in a net gain of
$0.04 per share, after taxes. Excluding one-time items, AutoNation earned
$0.17 per share or $61.2 million in the fourth quarter, versus $0.10 per share
or $40.6 million from continuing operations last year. Last year's reported
results included pre-tax charges of $478.5 million related primarily to the
closure of AutoNation's used vehicle megastores. The company said that
results in the fourth quarter 2000 benefited from improved operating
efficiencies, reductions in corporate overhead and the Company's share
repurchase program, partially offset by higher floor-plan interest.
Commenting on these fourth quarter results, AutoNation Chief Executive Officer
Michael J. Jackson said, "We have reduced costs and improved operating
efficiencies, generating a 50% improvement in net income from continuing
operations and a 70% increase in earnings per share this quarter. This
performance confirms the successful turnaround of AutoNation."
Revenue of $4.7 billion for the three months ended December 31, 2000,
declined four percent versus the same period last year, excluding the impact
of the Company's former used vehicle megastores. Revenue for the year ended
December 31, 2000, increased seven percent to $20.6 billion compared with last
year, excluding the impact of the used vehicle megastores. Mr. Jackson
commented, "AutoNation delivered record operating income in the fourth
quarter, despite the negative impact that a sudden downturn in auto sales had
on revenue. This confirms that AutoNation is well positioned to perform in a
challenging auto market."
Mr. Jackson noted that during the 12-month period, AutoNation generated
more than $1.5 billion of vehicle sales via the Internet sales channel, making
AutoNation the largest seller of vehicles online. He also said that in the
12-month period ended December 31, 2000, AutoNation generated $892 million of
EBITDA. "We used our cash flow to repurchase 27.6 million shares during the
year, to improve and upgrade many of our stores and to make acquisitions in
selected markets," Mr. Jackson said.
Looking ahead to full-year 2001, Mr. Jackson said the automotive industry
anticipates weaker demand for new vehicles, which AutoNation intends to offset
by leveraging its used vehicle, parts and service and finance and insurance
operations. "Even though new vehicle demand is expected to drop by about 10
percent, AutoNation's goal is to achieve earnings per share from continuing
operations in the range of $0.85 to $0.90 per share. Our earnings estimate in
the first quarter of 2001 is a range of $0.14 to $0.16 per share," Mr. Jackson
said.
AutoNation will discuss its fourth quarter and full-year 2000 results,
earnings outlook and supporting assumptions in a conference call and audio
webcast on Thursday, February 8, 2001, at 11 a.m. Eastern time. To listen to
the call, dial 1-800-230-1074 or log on to http://www.autonation.com and click on the
"Visit Our Corporate Site" icon. A playback of the conference call will be
available after 2:30 p.m., February 8, 2001, through February 15, 2001, by
dialing 1-800-475-6701, access code 563010, or by visiting the "Audio
Presentations" section of the Investor Relations page at AutoNation's
corporate site.
AutoNation, Inc., headquartered in Fort Lauderdale, Florida, is America's
largest automotive retailer, on and off the Web. AutoNation employs
approximately 35,000 people and owns and operates more than 400 automotive
retail franchises in 17 states. The Company ranked #63 on the 2000 Fortune
500 and was ranked America's "Most Admired Automotive Retailer" in 2000, also
by Fortune magazine. Additional information is available at
http://www.AutoNation.com.
Certain statements and information included in this release constitute
"forward-looking statements" within the meaning of the Federal Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company to be
materially different from any future results, performance or achievements
expressed or implied in such forward-looking statements. Additional
discussion of factors that could cause actual results to differ materially
from management's projections, estimates and expectations is contained in the
Company's SEC filings. The Company undertakes no duty to update its forward-
looking statements, including its earnings outlook.
AUTONATION, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2000 1999 2000 1999
(a) (a)
Revenue $4,701.8 $5,019.8 $20,609.6 $20,111.8
Cost of operations 3,982.8 4,308.6 17,577.1 17,183.2
Gross margin 719.0 711.2 3,032.5 2,928.6
Selling, general and
administrative expenses 527.3 623.4 2,177.7 2,279.4
Depreciation 12.3 16.7 54.7 60.1
Amortization 20.4 18.4 79.1 62.9
Restructuring and impairment
charges (income), net (1.6) 416.4 (3.8) 416.4
Operating income 160.6 (363.7) 724.8 109.8
Floorplan interest expense (53.0) (40.9) (199.8) (125.2)
Other interest expense, net (8.9) (8.0) (33.4) (14.3)
Other income (expense) 19.3 (2.6) 33.4 2.2
Income from continuing
operations before income
taxes 118.0 (415.2) 525.0 (27.5)
Provision for income taxes 44.3 (135.6) 196.9 4.0
Net income from continuing
operations 73.7 (279.6) 328.1 (31.5)
Income from discontinued
operations,
net of income taxes and
minority interest --- (123.5) 1.8 314.4
Net income $73.7 $(403.1) $329.9 $282.9
Diluted earnings per share:
Continuing operations $0.21 $(0.71) $0.91 $(0.07)
Discontinued operations --- (0.31) 0.00 0.73
Net income $0.21 $(1.02) $0.91 $0.66
Weighted average common and
common
equivalent shares
outstanding 355.7 394.9 361.4 429.8
Common shares outstanding 348.1 375.4 348.1 375.4
(a) Floorplan interest, depreciation expense and amortization expense have
been reclassified in prior periods to be comparative with the current
periods as the Company has changed the manner in which it presents
this information.
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
(In millions)
Three Months Ended December 31,
2000 % 1999 %
Operating Highlights:
Revenue:
New vehicle $2,832.2 60.2 $2,981.0 59.4
Used vehicle 865.2 18.4 1,007.4 20.1
Fixed operations 571.5 12.2 579.8 11.5
F&I 100.6 2.1 104.6 2.1
Other 332.3 7.1 347.0 6.9
$4,701.8 100.0 $5,019.8 100.0
Gross margin:
New vehicle $251.0 8.9 $255.4 8.6
Used vehicle 97.6 11.3 75.2 7.4
Fixed operations 246.7 43.2 246.0 42.4
F&I 100.6 100.0 104.6 100.0
Other 23.1 7.0 30.0 8.6
719.0 15.3 711.2 14.1
S,G&A - Store 491.6 10.5 563.4 11.2
Store performance 227.4 4.8 147.8 2.9
S,G&A - Corporate 31.7 0.6 60.0 1.2
S,G&A - Property carrying costs 4.0 0.1 --- ---
Depreciation 12.3 0.3 16.7 0.3
Amortization 20.4 0.4 18.4 0.3
Asset impairment, net (1.6) (0.0) 416.4 8.3
Operating income $160.6 3.4 $(363.7) (7.2)
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
(In millions)
Twelve Months Ended December 31,
2000 % 1999 %
Operating Highlights:
Revenue:
New vehicle $12,489.3 60.6 $11,481.0 57.1
Used vehicle 3,860.2 18.7 4,429.7 22.0
Fixed operations 2,334.9 11.3 2,222.0 11.1
F&I 431.8 2.1 423.4 2.1
Other 1,493.4 7.3 1,555.7 7.7
$20,609.6 100.0 $20,111.8 100.0
Gross margin:
New vehicle $1,056.0 8.5 $962.3 8.4
Used vehicle 438.6 11.4 449.6 10.1
Fixed operations 999.7 42.8 933.8 42.0
F&I 431.8 100.0 423.4 100.0
Other 106.4 7.1 159.5 10.3
3,032.5 14.7 2,928.6 14.6
S,G&A - Store 2,021.6 9.8 2,089.4 10.4
Store performance 1,010.9 4.9 839.2 4.2
S,G&A - Corporate 125.2 0.6 190.0 1.0
S,G&A - Property carrying costs 30.9 0.1 --- ---
Depreciation 54.7 0.3 60.1 0.3
Amortization 79.1 0.4 62.9 0.3
Asset impairment, net (3.8) (0.0) 416.4 2.1
Operating income $724.8 3.5 $109.8 0.5
Three Months Ended Twelve Months Ended
December 31, December 31,
2000 1999 2000 1999
Retail vehicle
sales:
New 107,000 116,000 489,000 469,000
Used 56,000 69,000 255,000 315,000
163,000 185,000 744,000 784,000
Gross margin per
vehicle retailed:
New $2,346 $2,202 $2,160 $2,052
Used $1,743 $1,090 $1,720 $1,427
F&I $617 $565 $580 $540
Capital expenditures $65.3 $73.8 $148.2 $242.3
Balance Sheet and
Other Highlights: December 31, 2000 December 31, 1999
Cash and cash
equivalents $82.2 $218.6
Inventory 2,769.2 2,706.8
Floorplan debt 2,416.7 2,210.6
Long-term credit
facility 615.0 669.0
Equity 3,860.2 4,601.2
Days supply
(trailing 30 days):
New 83 days 79 days
Used 43 days 58 days
AUTONATION, INC.
UNAUDITED SAME STORE DATA
(In millions)
Three Months Ended December 31,
2000 % 1999 %
Revenue:
New vehicle $2,684.1 60.6 $2,860.0 61.1
Used vehicle 820.3 18.5 841.4 18.0
Fixed operations 532.6 12.0 534.7 11.4
F&I 94.7 2.1 92.6 2.0
Other 300.7 6.8 349.5 7.5
$4,432.4 100.0 $4,678.2 100.0
Gross margin:
New vehicle $238.4 8.9 $245.5 8.6
Used vehicle 92.0 11.2 86.5 10.3
Fixed operations 230.6 43.3 227.3 42.5
F&I 94.7 100.0 92.6 100.0
Other 19.4 6.5 26.9 7.7
675.1 15.2 678.8 14.5
S,G&A - Store 454.1 10.2 479.1 10.2
Store performance $221.0 5.0 $199.7 4.3
Retail vehicle sales:
New 101,000 114,000
Used 53,000 58,000
154,000 172,000
Gross margin per vehicle retailed:
New $2,360 $2,154
Used $1,736 $1,491
F&I $615 $538
AUTONATION, INC.
UNAUDITED SAME STORE DATA
(In millions)
Twelve Months Ended December 31,
2000 % 1999 %
Revenue:
New vehicle $10,636.9 61.5 $10,405.8 60.5
Used vehicle 3,167.1 18.3 3,260.2 19.0
Fixed operations 1,947.2 11.3 1,904.9 11.1
F&I 362.8 2.1 344.1 2.0
Other 1,192.0 6.8 1,284.8 7.4
$17,306.0 100.0 $17,199.8 100.0
Gross margin:
New vehicle $894.1 8.4 $875.0 8.4
Used vehicle 362.2 11.4 360.1 11.0
Fixed operations 830.2 42.6 799.0 41.9
F&I 362.8 100.0 344.1 100.0
Other 76.4 6.4 113.6 8.8
2,525.7 14.6 2,491.8 14.5
S,G&A - Store 1,663.4 9.6 1,691.4 9.8
Store performance $862.3 5.0 $800.4 4.7
Retail vehicle sales:
New 420,000 428,000
Used 212,000 231,000
632,000 659,000
Gross margin per vehicle retailed:
New $2,129 $2,044
Used $1,708 $1,559
F&I $574 $522
