EX-99.1 2 anearningsrelease93021ex991.htm PRESS RELEASE Document

Exhibit 99.1
 
anlogo2016a12.jpg
  
Contact: Marc Cannon
(954) 769-3146
cannonm@autonation.com
 

Robert Quartaro
(954) 769-7342
quartaror@autonation.com

AutoNation Reports Sixth Consecutive All-Time Record Quarter
•Third quarter 2021 GAAP EPS from continuing operations was an all-time record $5.12, an increase of 150% compared to third quarter 2020 GAAP EPS from continuing operations of $2.05, and an increase of 115% compared to third quarter 2020 adjusted EPS from continuing operations of $2.38
◦There were no adjustments in the third quarter of 2021
•Third quarter 2021 same-store revenue was $6.4 billion, an increase of 18% compared to the same period a year ago, as well as compared to the third quarter of 2019
•Third quarter 2021 same-store gross profit increased 29% compared to the same period a year ago and increased 45% compared to the third quarter of 2019
•Third quarter 2021 SG&A as a percentage of gross profit was 56.9%, an improvement of 750 basis points compared to adjusted SG&A as a percentage of gross profit of 64.4% in the prior year
•AutoNation announces agreement to acquire Priority 1 Automotive Group, representing approximately $420 million in annual revenue
•During the third quarter of 2021, AutoNation repurchased 7.9 million shares of common stock, or 11% of shares outstanding, for an aggregate purchase price of $879 million
•AutoNation today announced that the Board of Directors authorized the repurchase of up to an additional $1 billion of AutoNation common stock
FORT LAUDERDALE, Fla., (October 21, 2021) — AutoNation, Inc. (NYSE: AN), America’s largest and most recognized automotive retailer, today 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 third quarter 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.

Mike Jackson, AutoNation’s Chief Executive Officer, stated, “Demand continues to outpace supply for new vehicles. 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, or $5.12 per share. Third quarter 2020 net income from continuing operations was $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. Reconciliations of non-GAAP financial measures are included in the attached financial tables.

Operational Summary
Third quarter 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 29% compared to the year-ago period and an increase of 45% compared to the third quarter of 2019.
◦New Vehicle Gross Profit - Same-store new vehicle gross profit per vehicle retailed was a record $5,484, up $2,949 or 116% compared to the year-ago period and up 238% compared to the third quarter of 2019.
◦Used Vehicle Gross Profit - Same-store used vehicle gross profit per vehicle retailed was $2,104, up $108 or 5% compared to the year-ago period and up 51% compared to the third quarter of 2019.
◦Customer Financial Services Gross Profit - Same-store Customer Financial Services gross profit per vehicle retailed was a record $2,573, up $417 or 19% compared to the year-ago period and up 32% compared to the third quarter of 2019.
◦Customer Care Gross Profit - Same-store Customer Care gross profit was $424 million, an increase of 8% compared to the year-ago period and an increase of 6% compared to the third quarter of 2019.
•SG&A as a Percentage of Gross Profit –SG&A as a percentage of gross profit was 56.9%, an improvement of 750 basis points compared to adjusted SG&A as a percentage of gross profit of 64.4% in the prior year and a 1,550 basis improvement compared to the third quarter of 2019.
Selected GAAP Financial Data
($ in millions, except per share data)
Three Months Ended September 30,
202120202019YoY2021 vs. 2019
Revenue$6,379.5 $5,404.9 $5,461.2 18%17%
Gross Profit$1,271.9 $971.5 $887.4 31%43%
Operating Income$503.3 $271.7 $193.5 85%160%
Net Income from Continuing Operations$361.7 $182.6 $100.0 98%262%
Diluted EPS from Continuing Operations$5.12 $2.05 $1.11 150%361%
Same-store Revenue$6,365.7 $5,380.3 $5,377.2 18%18%
Same-store Gross Profit$1,269.7 $986.5 $875.7 29%45%
Same-store New Vehicle Retail Unit Sales58,276 65,838 73,049 -11%-20%
Same-store Used Vehicle Retail Unit Sales77,073 64,393 62,513 20%23%
Selected Non-GAAP Financial Data
($ in millions, except per share data)
Three Months Ended September 30,
202120202019YoY2021 vs. 2019
Adjusted Operating Income$503.3 $308.2 $199.3 63%153%
Adjusted Net Income from Continuing Operations$361.7 $211.8 $106.3 71%240%
Adjusted Diluted EPS from Continuing Operations$5.12 $2.38 $1.18 115%334%

Capital Allocation
The Company’s seventh and eighth AutoNation USA stores opened in Denver as scheduled in September and October of 2021. AutoNation remains on track to open two additional AutoNation USA stores in the fourth quarter of 2021, including a store in Phoenix and entering a new market in Charlotte, North Carolina. The Company will open 12 additional new stores in 2022. These stores will continue to leverage the AutoNation brand, scale, and proven Customer-centric processes to capture a larger share of the used vehicle market.



AutoNation today announced it has signed an agreement to acquire Priority 1 Automotive Group representing approximately $420 million in annual revenue. This transaction is subject to customary terms and conditions, including manufacturer approval, and is expected to close in the fourth quarter of 2021. Together with the previously announced acquisition of Peacock Automotive Group, during 2021, AutoNation has announced acquisitions representing in the aggregate $800 million in annual revenue.
During the third quarter of 2021, AutoNation repurchased 7.9 million shares of common stock, or almost 11% of the shares outstanding at the beginning of the third quarter, for an aggregate purchase price of $879 million. For the last twelve months through September 30, 2021, AutoNation repurchased 23.9 million shares of common stock, or 27% of the shares outstanding, for an aggregate purchase price of $2.2 billion. AutoNation today announced that the Board of Directors authorized the repurchase of up to an additional $1 billion of AutoNation common stock. With the increased authorization, AutoNation has approximately $1.3 billion remaining Board authorization for share repurchase. As of October 19, 2021, AutoNation had approximately 66 million shares outstanding.

Liquidity and Leverage
As of September 30, 2021, AutoNation had $1.8 billion of liquidity, including $72 million in cash and approximately $1.8 billion of availability under our revolving credit facility. The Company’s covenant leverage ratio was 1.4x at quarter-end. AutoNation had approximately $2.7 billion of non-vehicle debt outstanding as of September 30, 2021.

Segment Results
Segment results(1) for the third quarter 2021 were as follows:
Third Quarter 2021 Segment Results
•Domestic – Domestic segment income(2) was $149 million compared to year-ago segment income of $112 million, an increase of 33%.
•Import – Import segment income(2) was $201 million compared to year-ago segment income of $124 million, an increase of 63%.
•Premium Luxury – Premium Luxury segment income(2) was $206 million compared to year-ago segment income of $144 million, an increase of 43%.
For the nine-month period ended September 30, 2021, AutoNation reported net income from continuing operations of $986 million, or $12.63 per share, compared to $230 million, or $2.59 per share, in the prior year. Adjusted net income from continuing operations for the nine-month period ended September 30, 2021, was $980 million, or $12.55 per share, compared to $418 million, or $4.70 per share, in the prior year. Reconciliations of non-GAAP financial measures are included in the attached financial tables.
Selected GAAP Financial Data
($ in millions, except per share data)
Nine Months Ended September 30,
202120202019YoY2021 vs. 2019
Revenue$19,261.7 $14,604.9 $15,786.8 32%22%
Gross Profit$3,631.0 $2,579.7 $2,627.4 41%38%
Operating Income$1,370.4 $253.8 $587.8 440%133%
Net Income from Continuing Operations$986.1 $230.3 $293.1 328%236%
Diluted EPS from Continuing Operations$12.63 $2.59 $3.24 388%290%
Selected Non-GAAP Financial Data
($ in millions, except per share data)
Nine Months Ended September 30,
202120202019YoY2021 vs. 2019
Adjusted Operating Income$1,370.4 $680.0 $594.9 102%130%
Adjusted Net Income from Continuing Operations$980.4 $418.1 $300.4 134%226%
Adjusted Diluted EPS from Continuing Operations$12.55 $4.70 $3.32 167%278%



The third quarter conference call may be accessed by telephone 844-200-6205 (Conference ID:577526) at 10:00 a.m. Eastern Time today or on AutoNation’s investor relations website at investors.autonation.com.

The webcast will also be available on AutoNation’s website under “Events & Presentations” following the call. A playback of the conference call will be available after 1:00 p.m. Eastern Time on October 21, 2021, through November 11, 2021, by calling 866-813-9403 (Conference ID: 527886). Additional information regarding AutoNation’s results can be found in the Investor Presentation available at: investors.autonation.com.
(1)AutoNation has three reportable segments: Domestic, Import, and Premium Luxury. The Domestic segment is comprised of stores that sell vehicles manufactured by General Motors, Ford, and Stellantis (formerly FCA US); the Import segment is comprised of stores that sell vehicles manufactured primarily by Toyota, Honda, Subaru, Nissan, and Hyundai; and the Premium Luxury segment is comprised of stores that sell vehicles manufactured primarily by Mercedes-Benz, BMW, Lexus, Audi, and Jaguar Land Rover.
(2)Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense.
About AutoNation, Inc.
AutoNation, America’s largest and most admired automotive retailer, is transforming the automotive industry through its bold leadership, innovation, and comprehensive brand extensions. As of September 30, 2021, AutoNation owned and operated over 300 locations from coast to coast. AutoNation has sold over 13 million vehicles, the first automotive retailer to reach this milestone. AutoNation’s success is driven by a commitment to delivering a peerless experience through customer-focused sales and service processes. Since 2013, AutoNation has raised over $28 million to drive out cancer, create awareness, and support critical research through its DRIVE PINK initiative, which was officially branded in 2015.

Please visit www.autonation.com, investors.autonation.com, www.twitter.com/CEOMikeJackson, and www.twitter.com/AutoNation, where AutoNation discloses additional information about the Company, its business, and its results of operations. Please also visit www.autonationdrive.com, AutoNation’s automotive blog, for information regarding the AutoNation community, the automotive industry, and current automotive news and trends.

NON-GAAP FINANCIAL MEASURES
This news release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, which exclude certain items disclosed in the attached financial tables. As required by SEC rules, the Company provides reconciliations of these measures to the most directly comparable GAAP measures. The Company believes that these non-GAAP financial measures improve the transparency of the Company’s disclosure, provide a meaningful presentation of the Company’s results excluding the impact of items not related to the Company's ongoing core business operations, and improve the period-to-period comparability of the Company’s results from its core business operations. Non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated and presented in accordance with GAAP.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Words such as “anticipates,” “expects,” “intends,” “goals,” “targets,” “projects,” “plans,” “believes,” “continues,” “may,” “will,” “could,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Statements regarding our strategic initiatives, partnerships, or investments (including the planned expansion of our AutoNation USA pre-owned vehicle stores); pending acquisitions; and our investments in digital and online capabilities and other brand extension strategies; as well as statements regarding our expectations for the future performance of our business (including with respect to new and pre-owned vehicle sales targets), and the automotive retail industry, and other statements that describe our objectives, goals, or plans, are forward-looking statements. Our forward-looking statements reflect our current expectations concerning future results and events, and they involve known and unknown risks, uncertainties, and other factors that are difficult to predict and may cause our actual results, performance, or achievements to be materially different from any future results, performance, and achievements expressed or implied by these statements. These risks, uncertainties, and other factors include, among others: economic conditions, including changes in consumer demand, unemployment rates, interest rates, fuel prices, and tariffs; our ability to implement successfully our strategic initiatives, partnerships, and investments, including the planned expansion of our AutoNation USA stores; our ability to identify, acquire, and build out suitable locations in a timely manner; our ability to acquire and integrate successfully new franchises; restrictions imposed by vehicle manufacturers and our ability to obtain manufacturer approval for acquisitions; our ability to develop successfully our digital and online capabilities and other brand


extension strategies; supply chain disruptions and inventory availability; our ability to maintain and enhance our retail brands and reputation and to attract consumers to our own digital channels; our ability to attain planned sales volumes within our expected time frames; new and used vehicle margins; our ability to successfully implement and maintain expense controls; the success and financial viability and the incentive and marketing programs of vehicle manufacturers and distributors with which we hold franchises; the response by federal, state, and local governments and other third parties to, and the economic impacts of, the COVID-19 pandemic; natural disasters and other adverse weather events; the resolution of legal and administrative proceedings; regulatory factors affecting our business, including fuel economy requirements; the announcement of safety recalls; factors affecting our goodwill and other intangible asset impairment testing; and other factors described in our news releases and filings made under the securities laws, including, among others, our Annual Reports on Form 10-K, our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. Forward-looking statements contained in this news release speak only as of the date of this news release, and we undertake no obligation to update these forward-looking statements to reflect subsequent events or circumstances.


AUTONATION, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
 
 Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
Revenue:
New vehicle$2,753.8 $2,748.4 $9,164.4 $7,291.6 
Used vehicle2,323.2 1,516.9 6,295.2 4,090.1 
Parts and service943.7 852.8 2,745.5 2,419.0 
Finance and insurance, net348.9 281.2 1,030.9 763.4 
Other9.9 5.6 25.7 40.8 
Total revenue6,379.5 5,404.9 19,261.7 14,604.9 
Cost of sales:
New vehicle2,434.2 2,581.2 8,334.3 6,908.4 
Used vehicle2,146.2 1,370.0 5,775.3 3,735.2 
Parts and service518.9 477.6 1,499.2 1,343.6 
Other8.3 4.6 21.9 38.0 
Total cost of sales5,107.6 4,433.4 15,630.7 12,025.2 
Gross profit1,271.9 971.5 3,631.0 2,579.7 
Selling, general, and administrative expenses723.7 641.4 2,120.5 1,790.0 
Depreciation and amortization47.6 51.8 143.4 149.0 
Goodwill impairment— — — 318.3 
Franchise rights impairment— — — 57.5 
Other (income) expense, net(2.7)6.6 (3.3)11.1 
Operating income503.3 271.7 1,370.4 253.8 
Non-operating income (expense) items:
Floorplan interest expense(4.9)(11.1)(20.9)(52.9)
Other interest expense(24.1)(23.6)(66.2)(70.3)
Other income (loss), net(1)
(0.8)6.5 19.1 218.2 
Income from continuing operations before income taxes473.5 243.5 1,302.4 348.8 
Income tax provision111.8 60.9 316.3 118.5 
Net income from continuing operations361.7 182.6 986.1 230.3 
Loss from discontinued operations, net of income taxes— — (0.2)(0.2)
Net income$361.7 $182.6 $985.9 $230.1 
Diluted earnings (loss) per share(2):
Continuing operations$5.12 $2.05 $12.63 $2.59 
Discontinued operations$— $— $— $— 
Net income$5.12 $2.05 $12.62 $2.59 
Weighted average common shares outstanding70.7 88.9 78.1 89.0 
Common shares outstanding, net of treasury stock, at period end
65.5 87.8 65.5 87.8 

(1)Current year-to-date and prior quarter-to-date and year-to-date periods include gains (losses) on minority equity investments.
(2)Earnings per share amounts are calculated discretely and therefore may not add up to the total due to rounding.



AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions, except per vehicle data)
Operating HighlightsThree Months Ended September 30,Nine Months Ended September 30,
 20212020$ Variance% Variance20212020$ Variance% Variance
Revenue:
New vehicle
$2,753.8 $2,748.4 $5.4 0.2 $9,164.4 $7,291.6 $1,872.8 25.7 
Retail used vehicle2,158.2 1,421.0 737.2 51.9 5,888.1 3,845.5 2,042.6 53.1 
Wholesale165.0 95.9 69.1 72.1 407.1 244.6 162.5 66.4 
Used vehicle
2,323.2 1,516.9 806.3 53.2 6,295.2 4,090.1 2,205.1 53.9 
Finance and insurance, net
348.9 281.2 67.7 24.1 1,030.9 763.4 267.5 35.0 
Total variable operations5,425.9 4,546.5 879.4 19.3 16,490.5 12,145.1 4,345.4 35.8 
Parts and service943.7 852.8 90.9 10.7 2,745.5 2,419.0 326.5 13.5 
Other9.9 5.6 4.3 25.7 40.8 (15.1)
Total revenue$6,379.5 $5,404.9 $974.6 18.0 $19,261.7 $14,604.9 $4,656.8 31.9 
Gross profit:
New vehicle
$319.6 $167.2 $152.4 91.1 $830.1 $383.2 $446.9 116.6 
Retail used vehicle163.1 128.8 34.3 26.6 468.7 318.1 150.6 47.3 
Wholesale13.9 18.1 (4.2)51.2 36.8 14.4 
Used vehicle
177.0 146.9 30.1 20.5 519.9 354.9 165.0 46.5 
Finance and insurance
348.9 281.2 67.7 24.1 1,030.9 763.4 267.5 35.0 
Total variable operations845.5 595.3 250.2 42.0 2,380.9 1,501.5 879.4 58.6 
Parts and service424.8 375.2 49.6 13.2 1,246.3 1,075.4 170.9 15.9 
Other1.6 1.0 0.6 3.8 2.8 1.0 
Total gross profit1,271.9 971.5 300.4 30.9 3,631.0 2,579.7 1,051.3 40.8 
Selling, general, and administrative expenses
723.7 641.4 (82.3)(12.8)2,120.5 1,790.0 (330.5)(18.5)
Depreciation and amortization47.6 51.8 4.2 143.4 149.0 5.6 
Goodwill impairment— — — — 318.3 318.3 
Franchise rights impairment— — — — 57.5 57.5 
Other (income) expense, net(2.7)6.6 9.3 (3.3)11.1 14.4 
Operating income503.3 271.7 231.6 85.2 1,370.4 253.8 1,116.6 440.0 
Non-operating income (expense) items:
Floorplan interest expense
(4.9)(11.1)6.2 (20.9)(52.9)32.0 
Other interest expense
(24.1)(23.6)(0.5)(66.2)(70.3)4.1 
Other income (loss), net(0.8)6.5 (7.3)19.1 218.2 (199.1)
Income from continuing operations before income taxes$473.5 $243.5 $230.0 94.5 $1,302.4 $348.8 $953.6 273.4 
Retail vehicle unit sales:
New
58,277 65,998 (7,721)(11.7)204,802 177,250 27,552 15.5 
Used
77,553 64,587 12,966 20.1 229,922 179,656 50,266 28.0 
135,830 130,585 5,245 4.0 434,724 356,906 77,818 21.8 
Revenue per vehicle retailed:
New
$47,254 $41,644 $5,610 13.5 $44,748 $41,137 $3,611 8.8 
Used
$27,829 $22,001 $5,828 26.5 $25,609 $21,405 $4,204 19.6 
Gross profit per vehicle retailed:
New
$5,484 $2,533 $2,951 116.5 $4,053 $2,162 $1,891 87.5 
Used
$2,103 $1,994 $109 5.5 $2,039 $1,771 $268 15.1 
Finance and insurance
$2,569 $2,153 $416 19.3 $2,371 $2,139 $232 10.8 
Total variable operations(1)
$6,122 $4,420 $1,702 38.5 $5,359 $4,104 $1,255 30.6 
(1) Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle, retail used vehicle, and finance and insurance gross profit by total retail vehicle unit sales.


Operating PercentagesThree Months Ended September 30,Nine Months Ended September 30,
 2021 (%)2020 (%)2021 (%)2020 (%)
Revenue mix percentages:
New vehicle43.2 50.9 47.6 49.9 
Used vehicle36.4 28.1 32.7 28.0 
Parts and service14.8 15.8 14.3 16.6 
Finance and insurance, net5.5 5.2 5.4 5.2 
Other0.1 — — 0.3 
100.0 100.0 100.0 100.0 
Gross profit mix percentages:
New vehicle25.1 17.2 22.9 14.9 
Used vehicle13.9 15.1 14.3 13.8 
Parts and service33.4 38.6 34.3 41.7 
Finance and insurance27.4 28.9 28.4 29.6 
Other0.2 0.2 0.1 — 
100.0 100.0 100.0 100.0 
Operating items as a percentage of revenue:
Gross profit:
New vehicle11.6 6.1 9.1 5.3 
Used vehicle - retail7.6 9.1 8.0 8.3 
Parts and service45.0 44.0 45.4 44.5 
Total19.9 18.0 18.9 17.7 
Selling, general, and administrative expenses
11.3 11.9 11.0 12.3 
Operating income7.9 5.0 7.1 1.7 
Operating items as a percentage of total gross profit:
Selling, general, and administrative expenses
56.9 66.0 58.4 69.4 
Operating income39.6 28.0 37.7 9.8 
 










AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions)
 
Segment Operating HighlightsThree Months Ended September 30,Nine Months Ended September 30,
 20212020$ Variance% Variance20212020$ Variance% Variance
Revenue:
Domestic
$1,955.2 $1,734.5 $220.7 12.7 $5,926.7 $4,704.0 $1,222.7 26.0 
Import
1,983.3 1,621.5 361.8 22.3 5,927.9 4,308.9 1,619.0 37.6 
Premium luxury
2,218.0 1,870.0 348.0 18.6 6,790.0 5,051.6 1,738.4 34.4 
Total
6,156.5 5,226.0 930.5 17.8 18,644.6 14,064.5 4,580.1 32.6 
Corporate and other
223.0 178.9 44.1 24.7 617.1 540.4 76.7 14.2 
Total consolidated revenue
$6,379.5 $5,404.9 $974.6 18.0 $19,261.7 $14,604.9 $4,656.8 31.9 
Segment income*:
Domestic
$149.1 $111.9 $37.2 33.2 $436.6 $248.1 $188.5 76.0 
Import
200.7 123.5 77.2 62.5 530.3 277.7 252.6 91.0 
Premium luxury
206.1 143.9 62.2 43.2 590.3 313.3 277.0 88.4 
Total
555.9 379.3 176.6 46.6 1,557.2 839.1 718.1 85.6 
Corporate and other(57.5)(118.7)61.2 (207.7)(638.2)430.5 
Add: Floorplan interest expense4.9 11.1 (6.2)20.9 52.9 (32.0)
Operating income$503.3 $271.7 $231.6 85.2 $1,370.4 $253.8 $1,116.6 440.0 
* Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense.
Retail new vehicle unit sales:
Domestic
15,878 21,620 (5,742)(26.6)59,006 57,995 1,011 1.7 
Import
27,968 29,356 (1,388)(4.7)94,947 78,248 16,699 21.3 
Premium luxury
14,431 15,022 (591)(3.9)50,849 41,007 9,842 24.0 
58,277 65,998 (7,721)(11.7)204,802 177,250 27,552 15.5 
Retail used vehicle unit sales:
Domestic
26,989 22,095 4,894 22.1 79,524 63,025 16,499 26.2 
Import
26,450 22,281 4,169 18.7 78,679 61,414 17,265 28.1 
Premium luxury
21,031 18,075 2,956 16.4 62,935 49,013 13,922 28.4 
74,470 62,451 12,019 19.2 221,138 173,452 47,686 27.5 
Brand Mix - Retail New Vehicle Units SoldThree Months EndedNine Months Ended
September 30,September 30,
 2021 (%)2020 (%)2021 (%)2020 (%)
Domestic:
Ford, Lincoln8.6 11.7 9.8 11.8 
Chevrolet, Buick, Cadillac, GMC9.1 10.7 10.0 11.0 
Chrysler, Dodge, Jeep, Ram9.5 10.4 9.0 9.9 
Domestic total27.2 32.8 28.8 32.7 
Import:
Toyota23.4 21.1 22.1 20.5 
Honda14.0 13.6 14.0 13.6 
Nissan2.6 2.5 2.6 2.6 
Other Import8.0 7.2 7.7 7.5 
Import total48.0 44.4 46.4 44.2 
Premium Luxury:
Mercedes-Benz7.6 8.1 8.5 8.9 
BMW8.1 6.0 7.4 5.8 
Lexus3.6 2.7 3.0 2.5 
Audi1.9 2.2 2.3 2.2 
Jaguar Land Rover1.8 2.2 2.0 2.3 
Other Premium Luxury1.8 1.6 1.6 1.4 
Premium Luxury total24.8 22.8 24.8 23.1 
100.0 100.0 100.0 100.0 




 AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA, Continued
($ in millions)
 
Capital Expenditures / Stock RepurchasesThree Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
Capital expenditures (1)
$47.5 $37.3 $166.2 $91.9 
Cash paid for acquisitions, net of cash acquired $209.1 $— $209.1 $0.4 
Proceeds from exercises of stock options$13.6 $30.5 $42.6 $31.5 
Stock repurchases:
Aggregate purchase price$879.2 $— $1,921.4 $80.0 
Shares repurchased (in millions)7.9 — 19.2 2.5 
 
Floorplan Assistance and ExpenseThree Months Ended September 30,Nine Months Ended September 30,
 20212020Variance20212020Variance
Floorplan assistance earned (included in cost of sales)$27.1 $28.9 $(1.8)$93.9 $77.1 $16.8 
New vehicle floorplan interest expense(3.8)(10.4)6.6 (18.7)(47.6)28.9 
Net new vehicle inventory carrying benefit $23.3 $18.5 $4.8 $75.2 $29.5 $45.7 
 
Balance Sheet and Other HighlightsSeptember 30, 2021December 31, 2020September 30, 2020
Cash and cash equivalents$72.0 $569.6 $350.5 
Inventory$1,496.6 $2,598.5 $2,482.5 
Total floorplan notes payable$1,248.4 $2,759.9 $2,308.6 
Non-vehicle debt$2,680.3 $2,101.8 $2,089.7 
Equity$2,356.5 $3,235.7 $3,357.9 
New days supply (industry standard of selling days)10 days42 days43 days
Used days supply (trailing calendar month days)35 days39 days39 days
 
 
Key Credit Agreement Covenant Compliance Calculations (2)
  
Leverage ratio1.40x
Covenantless than or equal to3.75x
 
Capitalization ratio48.6 %
Covenantless than or equal to70.0 %
 

(1) Includes accrued construction in progress and excludes property associated with leases entered into during the period.
(2)Calculated in accordance with our credit agreement as filed with the SEC.



AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA, Continued
($ in millions, except per share data) 
Comparable Basis Reconciliations(1)
Three Months Ended September 30,
Gross ProfitOperating IncomeIncome from Continuing Operations Before Income Taxes
Income Tax Provision(2)
Effective Tax RateNet Income
Diluted Earnings
Per Share(3)
20212020202120202021202020212020202120202021202020212020
As reported$361.7 $182.6 $5.12 $2.05 
Discontinued operations, net of income taxes— — $— $— 
From continuing operations, as reported$1,271.9 $971.5 $503.3 $271.7 $473.5 $243.5 $111.8 $60.9 23.6 %25.0 %361.7 182.6 $5.12 $2.05 
Loss on equity investment— — — — — 2.0 — 0.5 — 1.5 $— $0.02 
ACP inventory valuation adjustment— 20.6 — 20.6 — 20.6 — 5.0 — 15.6 $— $0.18 
SG&A costs associated with exit of ACP business (4)
— — — 2.9 — 2.9 — 0.7 — 2.2 $— $0.02 
Other costs associated with exit of ACP business (5)
— — — 13.0 — 13.0 — 3.1 — 9.9 $— $0.11 
Adjusted$1,271.9 $992.1 $503.3 $308.2 $473.5 $282.0 $111.8 $70.2 23.6 %24.9 %$361.7 $211.8 $5.12 $2.38 
Three Months Ended September 30,
SG&A
SG&A as a Percentage of Gross Profit (%)(6)
2021202020212020
As reported$723.7 $641.4 56.9 66.0 
Excluding SG&A costs associated with exit of ACP business
— 2.9 
Adjusted$723.7 $638.5 56.9 64.4 
(1)Please refer to the “Non-GAAP Financial Measures” section of the Press Release.
(2)Tax expense is determined based on the amount of additional taxes or tax benefits associated with each individual item.
(3)Diluted earnings per share amounts are calculated discretely and therefore may not add up to the total due to rounding.
(4)Includes $2.1 million related to accelerated amortization and $0.8 million related to involuntary termination benefits.
(5)Includes $7.3 million related to contract termination charges, $2.9 million related to accelerated depreciation, and $2.8 million related to asset impairments.
(6)Both numerator and denominator are adjusted, as applicable.






Comparable Basis Reconciliations(1)
Nine Months Ended September 30,
Gross ProfitOperating IncomeIncome from Continuing Operations Before Income Taxes
Income Tax Provision(2)
Effective Tax RateNet Income
Diluted Earnings
Per Share(3)
20212020202120202021202020212020202120202021202020212020
As reported$985.9 $230.1 $12.62 $2.59 
Discontinued operations, net of income taxes0.2 0.2 $— $— 
From continuing operations, as reported$3,631.0 $2,579.7 $1,370.4 $253.8 $1,302.4 $348.8 $316.3 $118.5 24.3 %34.0 %986.1 230.3 $12.63 $2.59 
Gain on equity investment— — — — (7.5)(212.7)(1.8)(53.7)(5.7)(159.0)$(0.07)$(1.79)
ACP inventory valuation adjustment— 20.6 — 20.6 — 20.6 — 5.0 — 15.6 $— $0.18 
SG&A costs associated with exit of ACP business (4)
— — — 2.9 — 2.9 — 0.7 — 2.2 $— $0.02 
Other costs associated with exit of ACP business (5)
— — — 13.0 — 13.0 — 3.1 — 9.9 $— $0.11 
Executive separation costs— — — 5.5 — 5.5 — 1.0 — 4.5 $— $0.05 
Goodwill and franchise rights impairment— — — 375.8 — 375.8 — 67.4 — 308.4 $— $3.47 
Asset impairments and net gains on store dispositions— — — 8.4 — 8.4 — 2.2 — 6.2 $— $0.07 
Adjusted$3,631.0 $2,600.3 $1,370.4 $680.0 $1,294.9 $562.3 $314.5 $144.2 24.3 %25.6 %$980.4 $418.1 $12.55 $4.70 
Nine Months Ended September 30,
SG&A
SG&A as a Percentage of Gross Profit (%)(6)
2021202020212020
As reported$2,120.5 $1,790.0 58.4 69.4 
Excluding SG&A costs associated with exit of ACP business
— 2.9 
Excluding executive separation costs— 5.5
Adjusted$2,120.5 $1,781.6 58.4 68.5 
(1)Please refer to the “Non-GAAP Financial Measures” section of the Press Release.
(2)Tax expense is determined based on the amount of additional taxes or tax benefits associated with each individual item.
(3)Diluted earnings per share amounts are calculated discretely and therefore may not add up to the total due to rounding.
(4)
Includes $2.1 million related to accelerated amortization and $0.8 million related to involuntary termination benefits.
(5)
Includes $7.3 million related to contract termination charges, $2.9 million related to accelerated depreciation, and $2.8 million related to asset impairments.
(6)Both numerator and denominator are adjusted, as applicable.



AUTONATION, INC.
UNAUDITED SAME STORE DATA
($ in millions, except per vehicle data)
 
Operating HighlightsThree Months Ended September 30,Nine Months Ended September 30,
 20212020$ Variance% Variance20212020$ Variance% Variance
Revenue:
New vehicle$2,753.8 $2,743.2 $10.6 0.4 $9,156.7 $7,278.0 $1,878.7 25.8 
Retail used vehicle2,146.6 1,418.3 728.3 51.4 5,867.2 3,837.2 2,030.0 52.9 
Wholesale164.6 95.7 68.9 72.0 406.3 244.1 162.2 66.4 
Used vehicle2,311.2 1,514.0 797.2 52.7 6,273.5 4,081.3 2,192.2 53.7 
Finance and insurance, net348.3 280.8 67.5 24.0 1,029.3 762.0 267.3 35.1 
Total variable operations5,413.3 4,538.0 875.3 19.3 16,459.5 12,121.3 4,338.2 35.8 
Parts and service942.4 836.9 105.5 12.6 2,740.8 2,364.6 376.2 15.9 
Other10.0 5.4 4.6 25.8 40.4 (14.6)
Total revenue$6,365.7 $5,380.3 $985.4 18.3 $19,226.1 $14,526.3 $4,699.8 32.4 
Gross profit:
New vehicle$319.6 $166.9 $152.7 91.5 $829.5 $382.7 $446.8 116.7 
Retail used vehicle162.2 128.5 33.7 26.2 466.9 317.7 149.2 47.0 
Wholesale13.9 18.1 (4.2)51.2 36.8 14.4 
Used vehicle176.1 146.6 29.5 20.1 518.1 354.5 163.6 46.1 
Finance and insurance348.3 280.8 67.5 24.0 1,029.3 762.0 267.3 35.1 
Total variable operations844.0 594.3 249.7 42.0 2,376.9 1,499.2 877.7 58.5 
Parts and service424.3 391.5 32.8 8.4 1,244.4 1,084.2 160.2 14.8 
Other1.4 0.7 0.7 3.7 2.3 1.4 
Total gross profit$1,269.7 $986.5 $283.2 28.7 $3,625.0 $2,585.7 $1,039.3 40.2 
Retail vehicle unit sales:
New58,276 65,838 (7,562)(11.5)204,569 176,796 27,773 15.7 
Used77,073 64,393 12,680 19.7 228,944 179,051 49,893 27.9 
135,349 130,231 5,118 3.9 433,513 355,847 77,666 21.8 
Revenue per vehicle retailed:
New$47,254 $41,666 $5,588 13.4 $44,761 $41,166 $3,595 8.7 
Used$27,852 $22,026 $5,826 26.5 $25,627 $21,431 $4,196 19.6 
Gross profit per vehicle retailed:
New$5,484 $2,535 $2,949 116.3 $4,055 $2,165 $1,890 87.3 
Used$2,104 $1,996 $108 5.4 $2,039 $1,774 $265 14.9 
Finance and insurance$2,573 $2,156 $417 19.3 $2,374 $2,141 $233 10.9 
Total variable operations(1)
$6,133 $4,424 $1,709 38.6 $5,365 $4,110 $1,255 30.5 
(1) Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle, retail used vehicle, and finance and insurance gross profit by total retail vehicle unit sales.
 


Operating PercentagesThree Months Ended September 30,Nine Months Ended September 30,
 2021 (%)2020 (%)2021 (%)2020 (%)
Revenue mix percentages:
New vehicle43.3 51.0 47.6 50.1 
Used vehicle36.3 28.1 32.6 28.1 
Parts and service14.8 15.6 14.3 16.3 
Finance and insurance, net5.5 5.2 5.4 5.2 
Other0.1 0.1 0.1 0.3 
100.0 100.0 100.0 100.0 
Gross profit mix percentages:
New vehicle25.2 16.9 22.9 14.8 
Used vehicle13.9 14.9 14.3 13.7 
Parts and service33.4 39.7 34.3 41.9 
Finance and insurance27.4 28.5 28.4 29.5 
Other0.1 — 0.1 0.1 
100.0 100.0 100.0 100.0 
Operating items as a percentage of revenue:
Gross profit:
New vehicle11.6 6.1 9.1 5.3 
Used vehicle - retail7.6 9.1 8.0 8.3 
Parts and service45.0 46.8 45.4 45.9 
Total19.9 18.3 18.9 17.8