AutoNation Reports 2009 Second Quarter Results of Operations
- AutoNation remained solidly profitable despite a distressed industry environment - Results driven by cost reductions and disciplined inventory management
FORT LAUDERDALE, Fla., July 31 -- AutoNation, Inc. , America's largest automotive retailer, today reported 2009 second quarter net income from continuing operations of $55 million or $0.31 per share, compared to year-ago net income from continuing operations of $56 million or $0.31 per share. After adjusting for certain items disclosed in the attached financial tables, net income from continuing operations for the 2009 second quarter was $51 million or $0.29 per share, compared to $59 million or $0.33 per share in the prior year.
Second quarter 2009 revenue totaled $2.6 billion, compared to $3.7 billion in the year-ago period. The decrease was driven primarily by lower new vehicle sales. In the second quarter, total U.S. industry retail new vehicle sales declined 40% compared to last year, based on CNW Research data. In comparison, in the second quarter AutoNation's new vehicle unit sales declined 38%.
Commenting on the second quarter, Mike Jackson, Chairman and Chief Executive Officer, said, "Despite extraordinarily difficult industry conditions, AutoNation delivered solid profitability, driven by cost reduction, lower interest expense, and our disciplined operating model and inventory management. The second quarter was a pivotal moment for the automotive industry. Long-awaited volume stabilization, the successful government-led restructuring of General Motors and Chrysler, and significant dealer consolidations were accomplished. The industry is now positioned for a healthy rebound when macroeconomic conditions, particularly consumer credit, improved." Mr. Jackson also noted, "Our continued disciplined inventories led to a year-over-year improvement in gross profit per vehicle retailed and lower floor plan expense."
Mike Jackson added, "The stabilization of the SAAR in the second quarter is the first step to a gradual recovery and marks the first time since the end of 2007 that we did not see a significant sequential decline in industry new vehicle sales. We also expect the 'Cash for Clunkers' program to stimulate new vehicle sales. Going forward, we expect a gradual improvement of new vehicle sales beginning in the second half of 2009 and intend to increase our inventory of vehicles in a disciplined manner to meet demand. Having weathered the storm, AutoNation remains in an excellent position to capitalize on dealer consolidation and the gradual recovery in industry volumes. We will continue to benefit from our $200 million structural cost reduction program."
At the end of the second quarter, AutoNation had nearly $450 million in liquidity, including cash of $129 million and remained well within the limits of the financial covenants in our debt agreements.
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.
-- Domestic -- Domestic segment income for the second quarter of 2009
was $26 million compared to year-ago segment income of $33 million.
Second quarter Domestic retail new vehicle unit sales declined 34%.
-- Import -- Import segment income for the second quarter of 2009 was
$42 million compared to year-ago segment income of $57 million.
Second quarter Import retail new vehicle unit sales declined 41%.
-- Premium Luxury -- Premium Luxury segment income for the second quarter
of 2009 was $43 million compared to year-ago segment income of $52
million. Second quarter Premium Luxury retail new vehicle unit sales
declined 34%.
For the six-month period ended June 30, 2009, the Company reported net income from continuing operations of $108 million or $0.61 per share compared to $111 million or $0.62 per share in the prior year. After adjusting for certain items as disclosed in the attached financial tables, net income from continuing operations for the six-month period ended June 30, 2009 was $91 million or $0.51 per share, compared to $114 million or $0.63 per share. The Company's revenue for the six-month period ended June 30, 2009 totaled $5.0 billion, down 32% compared to $7.4 billion in the prior year.
The second quarter conference call may be accessed at 10:00 a.m. Eastern Time on July 31, 2009 by phone at 888-769-8515 (pass code: AutoNation) or via the Internet (audio webcast) at http://www.autonation.com/ by clicking on the "Investors Relations" link then clicking "Webcasts." A playback of the conference call will be available after 12:00 (noon) p.m. Eastern Time July 31, 2009 through August 7, 2009 by calling 866-395-4250 (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 264 new vehicle franchises in 15 states. For additional information, please visit http://corp.autonation.com/ or www.AutoNation.com, where more than 70,000 vehicles are available for sale along with AutoNation's E-Vehicle program.
FORWARD LOOKING STATEMENTS
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.
NON-GAAP FINANCIAL MEASURES
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 INCOME STATEMENTS
($ in millions, except per share data)
Three Months Six Months Ended
Ended June 30, June 30,
2009 2008 2009 2008
---- ---- ---- ----
Revenue:
New vehicle $1,339.1 $2,062.0 $2,524.5 $4,133.7
Used vehicle 632.6 868.6 1,224.8 1,771.6
Parts and service 537.4 588.2 1,075.3 1,191.9
Finance and insurance, net 89.0 128.4 166.0 265.0
Other 11.5 16.4 24.9 32.9
---- ---- ---- ----
Total revenue 2,609.6 3,663.6 5,015.5 7,395.1
------- ------- ------- -------
Cost of sales:
New vehicle 1,252.8 1,925.6 2,364.3 3,858.9
Used vehicle 574.3 793.3 1,102.8 1,618.2
Parts and service 301.5 330.9 603.0 671.9
Other 4.5 7.4 10.6 14.6
--- --- ---- ----
Total cost of sales 2,133.1 3,057.2 4,080.7 6,163.6
------- ------- ------- -------
Gross profit 476.5 606.4 934.8 1,231.5
Selling, general and
administrative expenses 364.1 451.4 717.6 910.8
Depreciation and amortization 19.1 20.8 39.0 42.7
Franchise rights impairment 1.5 - 1.5 -
Other expenses (income), net (10.5) 0.1 (21.3) 0.4
----- --- ----- ---
Operating income 102.3 134.1 198.0 277.6
Floorplan interest expense (9.3) (19.7) (19.1) (42.5)
Other interest expense (10.5) (21.6) (22.3) (48.4)
Gain on senior note repurchases 0.6 - 12.5 -
Interest income 0.3 0.3 0.6 0.8
Other losses, net 3.5 1.0 1.8 (0.7)
--- --- --- ----
Income from continuing
operations before income taxes 86.9 94.1 171.5 186.8
Income tax provision 32.1 38.6 63.7 76.2
---- ---- ---- ----
Net income from continuing
operations 54.8 55.5 107.8 110.6
Loss from discontinued
operations, net of income taxes (18.1) (3.7) (36.5) (8.1)
----- ---- ----- ----
Net income $36.7 $51.8 $71.3 $102.5
===== ===== ===== ======
Diluted earnings (loss) per share:
Continuing operations $0.31 $0.31 $0.61 $0.62
Discontinued operations $(0.10) $(0.02) $(0.21) $(0.05)
Net income $0.21 $0.29 $0.40 $0.57
Weighted average common shares
outstanding 178.8 178.7 178.0 179.6
Common shares outstanding, net
of treasury stock, at June 30 178.0 176.7 178.0 176.7
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions, except per vehicle data)
Operating Highlights Three Months Ended June 30,
-------------------- -------------------------------
2009 2008 $ Variance % Variance
---- ---- ---------- ----------
Revenue:
New vehicle $1,339.1 $2,062.0 $(722.9) (35.1)
Retail used vehicle 554.4 727.9 (173.5) (23.8)
Wholesale 78.2 140.7 (62.5) (44.4)
---- ----- -----
Used vehicle 632.6 868.6 (236.0) (27.2)
----- ----- ------
Parts and service 537.4 588.2 (50.8) (8.6)
Finance and insurance, net 89.0 128.4 (39.4) (30.7)
Other 11.5 16.4 (4.9)
---- ---- ----
Total revenue $2,609.6 $3,663.6 $(1,054.0) (28.8)
======== ======== =========
Gross profit:
New vehicle $86.3 $136.4 $(50.1) (36.7)
Retail used vehicle 56.9 75.9 (19.0) (25.0)
Wholesale 1.4 (0.6) 2.0
--- ---- ---
Used vehicle 58.3 75.3 (17.0) (22.6)
---- ---- -----
Parts and service 235.9 257.3 (21.4) (8.3)
Finance and insurance 89.0 128.4 (39.4) (30.7)
Other 7.0 9.0 (2.0)
--- --- ----
Total gross profit 476.5 606.4 (129.9) (21.4)
Selling, general and
administrative expenses 364.1 451.4 87.3 19.3
Depreciation and amortization 19.1 20.8 1.7
Franchise rights impairment 1.5 - (1.5)
Other expenses, net (10.5) 0.1 10.6
----- --- ----
Operating income (loss) 102.3 134.1 (31.8) (23.7)
Floorplan interest expense (9.3) (19.7) 10.4
Other interest expense (10.5) (21.6) 11.1
Gain on senior note
repurchases 0.6 - 0.6
Interest income 0.3 0.3 -
Other losses, net 3.5 1.0 2.5
--- --- ---
Income from continuing
operations before income
taxes $86.9 $94.1 $(7.2) (7.7)
===== ===== =====
Retail vehicle unit sales:
New 43,512 69,805 (26,293) (37.7)
Used 34,141 45,961 (11,820) (25.7)
------ ------ -------
77,653 115,766 (38,113) (32.9)
====== ======= =======
Revenue per vehicle retailed:
New $30,775 $29,539 $1,236 4.2
Used $16,239 $15,837 $402 2.5
Gross profit per vehicle retailed:
New $1,983 $1,954 $29 1.5
Used $1,667 $1,651 $16 1.0
Finance and insurance $1,146 $1,109 $37 3.3
Operating Highlights Six Months Ended June 30,
-------------------- -----------------------------
2009 2008 $ Variance % Variance
---- ---- ---------- ----------
Revenue:
New vehicle $2,524.5 $4,133.7 $(1,609.2) (38.9)
Retail used vehicle 1,080.3 1,476.3 (396.0) (26.8)
Wholesale 144.5 295.3 (150.8) (51.1)
----- ----- ------
Used vehicle 1,224.8 1,771.6 (546.8) (30.9)
------- ------- ------
Parts and service 1,075.3 1,191.9 (116.6) (9.8)
Finance and insurance, net 166.0 265.0 (99.0) (37.4)
Other 24.9 32.9 (8.0)
---- ---- ----
Total revenue $5,015.5 $7,395.1 $(2,379.6) (32.2)
======== ======== =========
Gross profit:
New vehicle $160.2 $274.8 $(114.6) (41.7)
Retail used vehicle 118.7 154.2 (35.5) (23.0)
Wholesale 3.3 (0.8) 4.1
--- ---- ---
Used vehicle 122.0 153.4 (31.4) (20.5)
----- ----- -----
Parts and service 472.3 520.0 (47.7) (9.2)
Finance and insurance 166.0 265.0 (99.0) (37.4)
Other 14.3 18.3 (4.0)
---- ---- ----
Total gross profit 934.8 1,231.5 (296.7) (24.1)
Selling, general and
administrative expenses 717.6 910.8 193.2 21.2
Depreciation and amortization 39.0 42.7 3.7
Franchise rights impairment 1.5 - (1.5)
Other expenses, net (21.3) 0.4 21.7
----- --- ----
Operating income (loss) 198.0 277.6 (79.6) (28.7)
Floorplan interest expense (19.1) (42.5) 23.4
Other interest expense (22.3) (48.4) 26.1
Gain on senior note
repurchases 12.5 - 12.5
Interest income 0.6 0.8 (0.2)
Other losses, net 1.8 (0.7) 2.5
--- ---- ---
Income from continuing
operations before income
taxes $171.5 $186.8 $(15.3) (8.2)
====== ====== ======
Retail vehicle unit sales:
New 81,776 137,234 (55,458) (40.4)
Used 68,139 92,514 (24,375) (26.3)
------ ------ -------
149,915 229,748 (79,833) (34.7)
======= ======= =======
Revenue per vehicle retailed:
New $30,871 $30,122 $749 2.5
Used $15,854 $15,958 $(104) (0.7)
Gross profit per vehicle
retailed:
New $1,959 $2,002 $(43) (2.1)
Used $1,742 $1,667 $75 4.5
Finance and insurance $1,107 $1,153 $(46) (4.0)
Three Months Six Months
Ended June Ended June
Operating Percentages 30, 30,
--------------------- ------------- ------------
2009(%) 2008(%) 2009(%) 2008(%)
---- ---- ---- ----
Revenue mix percentages:
New vehicle 51.3 56.3 50.3 55.9
Used vehicle 24.2 23.7 24.4 24.0
Parts and service 20.6 16.1 21.4 16.1
Finance and insurance, net 3.4 3.5 3.3 3.6
Other 0.5 0.4 0.6 0.4
--- --- --- ---
100.0 100.0 100.0 100.0
===== ===== ===== =====
Gross profit mix percentages:
New vehicle 18.1 22.5 17.1 22.3
Used vehicle 12.2 12.4 13.1 12.5
Parts and service 49.5 42.4 50.5 42.2
Finance and insurance 18.7 21.2 17.8 21.5
Other 1.5 1.5 1.5 1.5
--- --- --- ---
100.0 100.0 100.0 100.0
===== ===== ===== =====
Operating items as a percentage of
revenue:
Gross profit:
New vehicle 6.4 6.6 6.3 6.6
Used vehicle - retail 10.3 10.4 11.0 10.4
Parts and service 43.9 43.7 43.9 43.6
Total 18.3 16.6 18.6 16.7
Selling, general and administrative
expenses 14.0 12.3 14.3 12.3
Operating income 3.9 3.7 3.9 3.8
Operating items as a percentage of total
gross profit:
Selling, general and administrative
expenses 76.4 74.4 76.8 74.0
Operating income 21.5 22.1 21.2 22.5
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions, except per vehicle data)
Segment Operating Highlights Three Months Ended June 30,
---------------------------- ---------------------------
2009 2008 $ Variance % Variance
---- ---- ---------- ----------
Revenue:
Domestic $842.4 $1,147.9 $(305.5) (26.6)
Import 1,004.4 1,500.1 (495.7) (33.0)
Premium luxury 733.9 988.3 (254.4) (25.7)
Corporate and other 28.9 27.3 1.6 5.9
---- ---- ---
Total revenue $2,609.6 $3,663.6 $(1,054.0) (28.8)
======== ======== =========
*Segment income (loss)
Domestic $25.8 $32.9 $(7.1) (21.6)
Import 41.6 57.1 (15.5) (27.1)
Premium luxury 42.8 51.5 (8.7) (16.9)
Corporate and other (17.2) (27.1) 9.9
----- ----- ---
Total segment income 93.0 114.4 (21.4) (18.7)
Add: Floorplan interest expense 9.3 19.7 (10.4)
Operating income $102.3 $134.1 $(31.8) (23.7)
====== ====== ======
* Segment income (loss) is defined as operating income net of floorplan
interest expense
Retail new vehicle unit sales:
Domestic 12,797 19,447 (6,650) (34.2)
Import 23,436 39,414 (15,978) (40.5)
Premium luxury 7,279 10,944 (3,665) (33.5)
----- ------ ------
43,512 69,805 (26,293) (37.7)
====== ====== =======
Segment Operating Highlights Six Months Ended June 30,
---------------------------- -------------------------
2009 2008 $ Variance % Variance
---- ---- ---------- ----------
Revenue:
Domestic $1,622.5 $2,422.2 $(799.7) (33.0)
Import 1,897.0 2,961.8 (1,064.8) (36.0)
Premium luxury 1,437.8 1,950.7 (512.9) (26.3)
Corporate and other 58.2 60.4 (2.2) (3.6)
---- ---- ----
Total revenue $5,015.5 $7,395.1 $(2,379.6) (32.2)
======== ======== =========
*Segment income (loss)
Domestic $48.0 $70.1 $(22.1) (31.5)
Import 70.9 112.3 (41.4) (36.9)
Premium luxury 83.8 102.2 (18.4) (18.0)
Corporate and other (23.8) (49.5) 25.7
----- ----- ----
Total segment income 178.9 235.1 (56.2) (23.9)
Add: Floorplan interest expense 19.1 42.5 (23.4)
Operating income $198.0 $277.6 $(79.6) (28.7)
====== ====== ======
* Segment income (loss) is defined as operating income net of floorplan
interest expense
Retail new vehicle unit sales:
Domestic 23,922 40,288 (16,366) (40.6)
Import 43,455 75,636 (32,181) (42.5)
Premium luxury 14,399 21,310 (6,911) (32.4)
------ ------ ------
81,776 137,234 (55,458) (40.4)
====== ======= =======
Brand Mix - New Vehicle Retail
Units Sold
------------------------------
Three Months Six Months
Ended June Ended June
30, 30,
------------- ------------
2009(%) 2008(%) 2009(%) 2008(%)
---- ---- ---- ----
Domestic:
Ford, Lincoln-Mercury 14.8 12.8 14.6 13.7
Chevrolet, Pontiac, Buick,
Cadillac, GMC 10.8 11.9 11.1 12.3
Chrysler, Jeep, Dodge 3.8 3.1 3.6 3.4
--- --- --- ---
Domestic total 29.4 27.8 29.3 29.4
---- ---- ---- ----
Import:
Honda 15.5 15.6 14.8 14.5
Toyota 19.3 23.0 19.9 22.4
Nissan 12.4 12.2 11.7 12.5
Other imports 6.7 5.7 6.8 5.7
--- --- --- ---
Import total 53.9 56.5 53.2 55.1
---- ---- ---- ----
Premium Luxury:
Mercedes 8.1 7.0 8.4 6.9
BMW 4.4 4.5 4.7 4.4
Lexus 2.4 2.8 2.7 2.9
Other premium luxury (Land
Rover, Porsche) 1.8 1.4 1.7 1.3
--- --- --- ---
Premium Luxury total 16.7 15.7 17.5 15.5
---- ---- ---- ----
100.0 100.0 100.0 100.0
===== ===== ===== =====
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA, Continued
($ in millions, except per share data)
Capital Expenditures / Stock and Three Months Six Months
Debt Repurchases Ended June 30, Ended June 30,
--------------------------------- ------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
Capital expenditures $13.8 $17.7 $34.2 $41.1
Acquisitions $- $- $0.2 $29.4
Proceeds from exercises of stock
options $9.6 $- $9.8 $1.0
Senior note repurchases (aggregate
principal) $6.0 $- $78.0 $-
Stock repurchases:
Aggregate purchase price $- $26.3 $- $54.1
Shares repurchased (in millions) - 1.9 - 3.8
Floorplan
Assistance
and Expense Three Months Ended June 30, Six Months Ended June 30,
------------ -------------------------- ------------------------
2009 2008 Variance 2009 2008 Variance
---- ---- ---------- ---- ---- ----------
Floorplan
assistance
earned
(included in
cost of sales) $11.0 $18.1 $(7.1) $21.0 $37.4 $(16.4)
Floorplan
interest
expense (new
vehicles) (8.1) (18.9) 10.8 (17.3) (41.7) 24.4
---- ----- ---- ----- ----- ----
Net inventory
carrying
benefit
(cost) $2.9 $(0.8) $3.7 $3.7 $(4.3) $8.0
==== ===== ==== ==== ===== ====
Balance Sheet and
Other Highlights
-----------------------
December
June 30, 2009 31, 2008 June 30, 2008
------------- --------- -------------
Cash and cash equivalents $128.9 $110.1 $42.8
Inventory $1,257.9 $1,749.9 $2,108.3
Total floorplan notes
payable $1,200.7 $1,805.8 $2,078.4
Non-vehicle debt $1,133.0 $1,258.9 $1,518.1
Equity $2,290.4 $2,198.1 $3,535.1
New days supply (industry
standard of selling
days, including fleet) 53 days 82 days 60 days
Used days supply (trailing
30 days) 35 days 30 days 41 days
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA, Continued
($ in millions, except per share data)
Comparable Basis
Reconciliations*
-----------------
Three Months Ended June 30,
---------------------------
Diluted
Earnings
Net Income Per Share
------------ ------------
2009 2008 2009 2008
---- ---- ---- ----
As reported $36.7 $51.8 $0.21 $0.29
Discontinued operations, net of
income taxes 18.1 3.7 $0.10 $0.02
---- ---
From continuing operations, as
reported 54.8 55.5 $0.31 $0.31
Net gain on asset sales and
dispositions (3.7) - $(0.02) $-
Stock compensation expense
adjustment - 3.1 $- $0.02
Franchise impairments** - - $- $-
--- ---
Adjusted $51.1 $58.6 $0.29 $0.33
===== =====
Six Months Ended June 30,
-------------------------
Diluted
Net Income Earnings
(Loss) Per Share
----------- ------------
2009 2008 2009 2008
---- ---- ---- ----
As reported $71.3 $102.5 $0.40 $0.57
Discontinued operations, net of
income taxes 36.5 8.1 $0.21 $0.05
---- ---
From continuing operations, as
reported 107.8 110.6 $0.61 $0.62
Net gain on asset sales and
dispositions (9.6) - $(0.05) $-
Gain on senior note repurchases (7.7) - $(0.04) $-
Property and other impairments*** 0.7 - $0.00 $-
Stock compensation expense
adjustment - 3.1 $- $0.02
Franchise impairments*** - - $- $-
--- ---
Adjusted $91.2 $113.7 $0.51 $0.63
===== ======
* Please refer to the "Non-GAAP Financial Measures" section of the
Press Release.
** Franchise impairments for the three and six months ended June 30,
2008, totaled $3.0 million after-tax, which has been reclassified to
loss from discontinued operations since they related to dealerships
classified as discontinued operations during the three months ended
June 30, 2009.
*** Property and other impairments for the three months ended March 31,
2009 totaled $4.8 million after-tax, of which $4.5 million has been
reclassified to loss from discontinued operations since they related
to dealerships classified as discontinued operations during the three
months ended June 30, 2009.
AUTONATION, INC.
UNAUDITED SAME STORE DATA
($ in millions, except per vehicle data)
Operating Highlights Three Months Ended June 30,
-------------------- ---------------------------
2009 2008 $ Variance % Variance
---- ---- ---------- ----------
Revenue:
New vehicle $1,324.5 $2,048.4 $(723.9) (35.3)
Retail used vehicle 547.9 717.9 (170.0) (23.7)
Wholesale 76.5 138.5 (62.0) (44.8)
---- ----- -----
Used vehicle 624.4 856.4 (232.0) (27.1)
Parts and service 533.4 578.7 (45.3) (7.8)
Finance and insurance, net 88.4 127.4 (39.0) (30.6)
Other 10.6 15.8 (5.2) (32.9)
---- ---- ----
Total revenue $2,581.3 $3,626.7 $(1,045.4) (28.8)
======== ======== =========
Gross profit:
New vehicle $85.8 $135.6 $(49.8) (36.7)
Retail used vehicle 56.0 74.7 (18.7) (25.0)
Wholesale 1.5 (0.5) 2.0
--- ---- ---
Used vehicle 57.5 74.2 (16.7) (22.5)
Parts and service 234.1 254.0 (19.9) (7.8)
Finance and insurance 88.4 127.4 (39.0) (30.6)
Other 6.8 8.8 (2.0)
--- --- ----
Total gross profit $472.6 $600.0 $(127.4) (21.2)
====== ====== =======
Retail vehicle unit sales:
New 43,171 69,385 (26,214) (37.8)
Used 33,808 45,249 (11,441) (25.3)
------ ------ -------
76,979 114,634 (37,655) (32.8)
====== ======= =======
Revenue per vehicle retailed:
New $30,680 $29,522 $1,158 3.9
Used $16,206 $15,866 $340 2.1
Gross profit per vehicle
retailed:
New $1,987 $1,954 $33 1.7
Used $1,656 $1,651 $5 0.3
Finance and insurance $1,148 $1,111 $37 3.3
Operating Highlights Six Months Ended June 30,
-------------------- -----------------------------
2009 2008 $ Variance % Variance
---- ---- ---------- ----------
Revenue:
New vehicle $2,496.4 $4,103.6 $(1,607.2) (39.2)
Retail used vehicle 1,066.6 1,455.4 (388.8) (26.7)
Wholesale 141.2 290.5 (149.3) (51.4)
----- ----- ------
Used vehicle 1,207.8 1,745.9 (538.1) (30.8)
Parts and service 1,066.0 1,172.3 (106.3) (9.1)
Finance and insurance, net 164.6 262.7 (98.1) (37.3)
Other 23.3 31.9 (8.6) (27.0)
---- ---- ----
Total revenue $4,958.1 $7,316.4 $(2,358.3) (32.2)
======== ======== =========
Gross profit:
New vehicle $158.7 $273.1 $(114.4) (41.9)
Retail used vehicle 116.6 151.5 (34.9) (23.0)
Wholesale 3.5 (0.7) 4.2
--- ---- ---
Used vehicle 120.1 150.8 (30.7) (20.4)
Parts and service 468.2 513.4 (45.2) (8.8)
Finance and insurance 164.6 262.7 (98.1) (37.3)
Other 13.8 18.2 (4.4)
---- ---- ----
Total gross profit $925.4 $1,218.2 $(292.8) (24.0)
====== ======== =======
Retail vehicle unit sales:
New 81,146 136,319 (55,173) (40.5)
Used 67,346 91,050 (23,704) (26.0)
------ ------ -------
148,492 227,369 (78,877) (34.7)
======= ======= =======
Revenue per vehicle retailed:
New $30,764 $30,103 $661 2.2
Used $15,838 $15,985 $(147) (0.9)
Gross profit per vehicle
retailed:
New $1,956 $2,003 $(47) (2.3)
Used $1,731 $1,664 $67 4.0
Finance and insurance $1,108 $1,155 $(47) (4.1)
Three Months Six Months
Ended June Ended June
Operating Percentages 30, 30,
--------------------- ------------- ------------
2009(%) 2008(%) 2009(%) 2008(%)
---- ---- ---- ----
Revenue mix percentages:
New vehicle 51.3 56.5 50.3 56.1
Used vehicle 24.2 23.6 24.4 23.9
Parts and service 20.7 16.0 21.5 16.0
Finance and insurance, net 3.4 3.5 3.3 3.6
Other 0.4 0.4 0.5 0.4
--- --- --- ---
100.0 100.0 100.0 100.0
===== ===== ===== =====
Gross profit mix percentages:
New vehicle 18.2 22.6 17.1 22.4
Used vehicle 12.2 12.4 13.0 12.4
Parts and service 49.5 42.3 50.6 42.1
Finance and insurance 18.7 21.2 17.8 21.6
Other 1.4 1.5 1.5 1.5
--- --- --- ---
100.0 100.0 100.0 100.0
===== ===== ===== =====
Operating items as a percentage
of revenue:
Gross Profit:
New vehicle 6.5 6.6 6.4 6.7
Used vehicle - retail 10.2 10.4 10.9 10.4
Parts and service 43.9 43.9 43.9 43.8
Total 18.3 16.5 18.7 16.7
AUTONATION, INC.
KEY CREDIT AGREEMENT COVENANT COMPLIANCE CALCULATIONS
June 30, 2009
-------------
($ millions)
-----------------------------------------
Income Statement information for the last
twelve months (July 1, 2008 - June 30,
2009):
-----------------------------------------
Net income (loss) from continuing operations $(1,205.6)
Floorplan and other interest expense 120.4
Income tax provision (benefit) (209.8)
Depreciation and amortization 81.1
Stock-based compensation expense (SFAS
No. 123R) 17.2
Impairment charges (including goodwill,
franchise rights, and long-lived
assets) 1,745.9
-------
EBITDA 549.2
Floorplan interest expense (57.1)
-----
Adjusted EBITDA $492.1
======
--------------------
As of June 30, 2009:
--------------------
Funded indebtedness (primarily comprised of
current and long-term debt and letters of
credit) $1,205.0
Vehicle secured indebtedness (floorplan
payables) 1,200.7
-------
Funded indebtedness including floorplan 2,405.7
Shareholders' equity 2,290.8
-------
Total capitalization including floorplan $4,696.5
========
---------------------------------------------------------------
Ratio of funded indebtedness/
Adjusted EBITDA......................... 2.45
Covenant................................ less than 3.00
---------------------------------------------------------------
---------------------------------------------------------------
Ratio of funded indebtedness including
floorplan/
Total capitalization including
floorplan.............................. 51.2%
Covenant................................ less than 65.0%
---------------------------------------------------------------
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