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Thursday, 21 October 2021 20:52

AutoNation Reports Sixth Consecutive All-Time Record Quarter

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AutoNation, Inc., America's largest automotive retailer, on Oct. 21 reported its sixth consecutive all-time record quarter.

During the quarter, consumer demand continued to outpace supply, driven by consumer desire for personal transportation and ongoing manufacturing supply chain disruptions. New vehicle inventory remains at historically low levels, which combined with strong execution, has supported record profitability.

 

With personal transportation remaining a top priority, many customers are shifting from new to pre-owned vehicles. AutoNation continues to outperform the industry due to strong sourcing capabilities, with 3Q 2021 same store used vehicle revenue up 53% year-over-year. Ninety percent of all pre-owned vehicles retailed by AutoNation in the third quarter were self-sourced.

 

"Demand continues to outpace supply for new vehicles," said Mike Jackson, AutoNation's CEO. "New vehicle sales are constrained by reduced production volume with low inventory levels. We expect this pent up demand to support sales for the foreseeable future."

 

Third quarter 2021 net income from continuing operations was $362 million. Third quarter 2020 net income from continuing operations was $183 million, which included charges of $28 million after-tax related to the closing of the AutoNation Collision Parts business and a non-cash unrealized loss related to an investment in Vroom of $2 million after-tax.

 

3Q 2021 Operational Summary

 

Revenue---Same-store revenue was $6.4 billion, an increase of 18% compared to the year-ago period and an increase of 18% compared to the third quarter of 2019.


New Vehicle Revenue---Same-store new vehicle revenue was flat compared to the prior year and decreased 3% compared to the third quarter of 2019.


Used Vehicle Revenue---Same-store used vehicle revenue increased 53% compared to the prior year and increased 67% compared to the third quarter of 2019


Gross Profit---Same-store gross profit totaled $1.3 billion, an increase of...


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