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Thursday, 22 October 2020 20:23

AutoNation Reports All-Time Record Results

Index

AutoNation, Inc., America's largest and most recognized automotive retailer, on Oct. 21 reported third quarter 2020 net income from continuing operations of $183 million, or $2.05 per share, which included charges of $28 million after-tax, or $0.31 per share, related to the closing of the AutoNation Collision Parts business and a non-cash unrealized loss related to our investment in Vroom of $2 million after-tax, or $0.02 per share.

Third quarter 2019 net income from continuing operations was $100 million, or $1.11 per share. Third quarter 2020 adjusted EPS from continuing operations was an all-time record $2.38, an increase of 102% compared to third quarter 2019 adjusted EPS from continuing operations of $1.18.  

 

Third Quarter Operational Summary

 

  • Revenue: Same-store revenue was $5.4 billion, which was in line with the same period a year ago
  • Gross Profit: Same-store gross profit totaled $972 million, an increase of 11% compared to the year-ago period
  • New Vehicle Gross Profit: Same-store new vehicle gross profit per vehicle retailed was $2,535, up $914 or 56% compared to the year-ago period
  • Used Vehicle Gross Profit: Same-store used vehicle gross profit per vehicle retailed was $1,994, up $602 or 43% compared to the year-ago period
  • Customer Financial Services Gross Profit: Same-store Customer Financial Services gross profit per vehicle retailed was $2,154, up $213 or 11% compared to the year-ago period.

 

Expense Control

 

During the third quarter, AutoNation continued to leverage its digital capabilities to drive cost reductions and increased efficiency for the long-term success of the business. These efforts, combined with strong gross profit growth, drove significant SG&A leverage in the quarter.

Adjusted SG&A as a percentage of gross profit was 64.4% in the third quarter of 2020, which represents an 800 basis point improvement compared to the third quarter of 2019. AutoNation remains committed to operating below 68% SG&A as a percentage of gross profit on a long-term basis. 


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