AutoNation...Jackson's Running A Business
FORT LAUDERDALE, Fla., May 2 AutoNation's Michael J. Jackson, Chief Executive
Officer said, "AutoNation's first-quarter performance reflects our
disciplined approach to the automotive retail business. Despite a challenging
new vehicle market, we expanded margins, reduced inventories, paid down debt
and repurchased shares. AutoNation is well positioned to meet the challenges
of an uncertain retail environment."
Looking ahead, Mr. Jackson added, "AutoNation remains cautious about the
full-year outlook for the industry and is therefore maintaining its estimate
of 2001 earnings in the range of $0.85 to $0.90 per share. Our earnings
estimate for the 2001 second quarter is a range of 21 cents to 23 cents per
share."
AutoNation, Inc.today reported that for the three months ended March 31, 2001,
the company had net income of $59.9 million, or $0.17 per share, versus $62.3 million,
or $0.17 per share, in the same period last year. Last year's reported first-
quarter net income included a loss from discontinued operations of one cent
per share.
During the quarter, total revenue declined 6.6% to $4.89 billion compared
with $5.23 billion for the same period last year, and operating income
declined 6.2% to $152.9 million versus $163 million last year. The company
said revenue in the quarter reflected a slower pace of vehicle sales compared
to last year, partially offset by revenue improvement of 2.3% in its parts and
service business and 4.4% in its finance and insurance operation. This
positive shift in the first-quarter revenue mix to higher margin businesses
resulted in a 70-basis-point improvement in gross margin (15.1% versus 14.4% a
year ago) and a 10-basis-point improvement in store performance margin
(4.7% versus 4.6% a year ago).
Also during the three-months ended March 31, 2001, AutoNation:
* Generated EBITDA of $188.4 million.
* Improved gross margins on parts and service to 42.9%, a 90-basis-point
improvement from a year ago.
* Improved the sale of finance and insurance products by 16% on a per-
vehicle-retailed basis to $641 versus $553 a year ago.
* Reduced vehicle floorplan debt and non-vehicle debt by a total of
$184.4 million.
* Reduced new vehicle days supply by 24% to 63 days versus 83 days as of
December 31, 2000.
* Reduced used vehicle days supply by 19% to 35 days versus 43 days supply
as of December 31, 2000.
* Reduced corporate SG&A by 14.4%, or $6.7 million, driven primarily by
the continued disposal of excess properties.
* Repurchased 12.1 million shares of its stock at a cost of $98.2 million,
leaving a board-authorized amount of $168.8 million for future
repurchases.
AutoNation, Inc., headquartered in Fort Lauderdale, Florida, is America's
largest automotive retailer, on and off the Web. A Fortune 100 company,
AutoNation employs about 31,000 people and owns and operates 375 automotive
retail franchises in 17 states. 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 March 31,
2001 2000
Revenue $4,887.0 $5,230.2
Cost of operations 4,149.2 4,478.1
Gross margin 737.8 752.1
Selling, general and
administrative expenses 549.3 556.0
Depreciation 15.6 14.7
Amortization 20.0 18.4
Operating income 152.9 163.0
Floorplan interest expense (45.9) (47.5)
Other interest expense, net (9.6) (8.2)
Other income (expense) (0.1) (3.8)
Income from continuing operations
before income taxes 97.3 103.5
Provision for income taxes 37.4 38.8
Net income from continuing
operations 59.9 64.7
Income from discontinued
operations, net of income taxes
and minority interest --- (2.4)
Net income $59.9 $62.3
Diluted earnings per share:
Continuing operations $0.17 $0.18
Discontinued operations --- (0.01)
Net income $0.17 $0.17
Weighted average common and common
equivalent shares outstanding 344.3 367.5
Common shares outstanding 336.0 361.1
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions, except gross margin per vehicle data)
Three Months Ended March 31,
2001 % 2000 %
Operating Highlights:
Revenue:
New vehicle $2,867.7 58.7 $3,157.2 60.4
Used vehicle 977.1 20.0 1,003.3 19.2
Parts and service 601.5 12.3 587.9 11.2
F&I 111.5 2.3 106.8 2.0
Other 329.2 6.7 375.0 7.2
$4,887.0 100.0 $5,230.2 100.0
Gross margin:
New vehicle $239.0 8.3 $260.9 8.3
Used vehicle 107.4 11.0 116.4 11.6
Parts and service 257.8 42.9 247.1 42.0
F&I 111.5 100.0 106.8 100.0
Other 22.1 6.7 20.9 5.6
737.8 15.1 752.1 14.4
S,G&A - Store 509.4 10.4 509.4 9.7
Store performance 228.4 4.7 242.7 4.6
S,G&A - Corporate 39.9 0.8 46.6 0.9
Depreciation 15.6 0.3 14.7 0.3
Amortization 20.0 0.4 18.4 0.4
Operating income $152.9 3.1 $163.0 3.1
Retail vehicle sales:
New 109,000 126,000
Used 65,000 67,000
174,000 193,000
Gross margin per vehicle
retailed:
New $2,193 $2,071
Used $1,652 $1,737
F&I $641 $553
Capital expenditures $24.0 $26.5
Balance Sheet and Other
Highlights: March 31, 2001 December 31, 2000
Cash and cash equivalents $83.0 $82.2
Inventory $2,597.4 $2,769.2
Floorplan debt $2,294.6 $2,454.0
Non-vehicle debt $832.2 $857.2
Equity $3,803.4 $3,842.5
Days supply (trailing 30 days):
New 63 days 83 days
Used 35 days 43 days
AUTONATION, INC.
UNAUDITED SAME STORE DATA
($ in millions, except gross margin per vehicle data)
Three Months Ended March 31,
2001 % 2000 %
Revenue:
New vehicle $2,672.0 58.8 $3,004.2 61.0
Used vehicle 907.8 20.0 928.2 18.8
Parts and service 557.1 12.3 546.7 11.1
F&I 103.9 2.3 101.1 2.1
Other 303.2 6.6 346.6 7.0
$4,544.0 100.0 $4,926.8 100.0
Gross margin:
New vehicle $223.1 8.3 $249.5 8.3
Used vehicle 101.2 11.1 107.5 11.6
Parts and service 238.8 42.9 229.8 42.0
F&I 103.9 100.0 101.1 100.0
Other 18.0 5.9 20.7 6.0
685.0 15.1 708.6 14.4
S,G&A - Store 470.9 10.4 470.7 9.6
Store performance $214.1 4.7 $237.9 4.8
Retail vehicle sales:
New 101,000 120,000
Used 60,000 62,000
161,000 182,000
Gross margin per vehicle retailed:
New $2,209 $2,079
Used $1,687 $1,734
F&I $645 $555
