AutoNation Reports Fourth Quarter and Full Year Results

• Q4 2024 revenue up 8% on a same store basis; EPS $4.64 and adjusted EPS $4.97
  
  
  
  
• New Vehicle same-store unit sales growth of 12% in Q4, with sequential unit profitability growth
  
  
  
  
• Used Vehicle same-store gross profit growth of 14% in Q4
  
  
  
  
• After-Sales and CFS same-store gross profit growth of 5% and 6%, respectively in Q4
  
  
  
  
• AN Finance originated $1.1 billion of loans during 2024
  
  
  
  
• Share repurchases of $460 million in 2024 representing a 7% share reduction
  
  
  
  
• Continued strong balance sheet, leverage reduced sequentially to 2.4X in Q4

FORT LAUDERDALE, Fla., Feb. 11, 2025 /PRNewswire/ -- AutoNation, Inc. (NYSE:AN) today reported fourth quarter 2024 revenue of $7.2 billion, an increase of 8% compared to the same period a year ago on a same store basis. For the quarter, EPS was $4.64 and adjusted EPS was $4.97. Reconciliations of non-GAAP financial measures are included in the attached financial tables.

"Our fourth quarter performance reflects the strength of AutoNation's business model and operations. We achieved double-digit new vehicle unit growth, gaining share in the markets we serve, while also meaningfully increasing used vehicle, Customer Financial Services, and After-Sales gross profit. Further, we continued to expand our AutoNation Finance business and to enhance our loan portfolio, by originating more than $1 billion in loans during 2024 and selling most of the legacy, sub-prime portfolio. We are pleased with our performance, confident in our ability to adapt to changing market conditions, and remain focused on delivering attractive shareholder returns," said Mike Manley, AutoNation's Chief Executive Officer.

 

 

• Same-store Revenue – $7.2 billion, increased $510 million or 8% from a year ago, reflecting increased new vehicle unit sales and higher average new vehicle selling prices.
  • New Vehicle Revenue - $3.8 billion, an increase of $443 million or 13%.
  • Used Vehicle Revenue - $1.9 billion, an increase of $3 million or relatively flat.
  • After-Sales Revenue - $1.2 billion, an increase of $44 million or 4%.
  • Customer Financial Services Revenue - $363 million, an increase of $20 million or 6%.
• Same-store Gross Profit - $1.2 billion, increased $39 million or 3% from a year ago.
  • New Vehicle Gross Profit - $212 million, a decrease of $23 million reflecting unit profitability of $2,971, compared to $3,665 a year ago, partially offset by a 12% increase in unit sales.
  • Used Vehicle Gross Profit - $103 million, an increase of $13 million reflecting unit profitability of $1,549, compared to $1,462 a year ago, stable unit sales and improved sourcing and pricing effectiveness.
  • After-Sales Gross Profit - $556 million, an increase of $29 million or 5%.
  • Customer Financial Services Gross Profit - $363 million, an increase of $20 million or 6%, reflecting unit profitability of $2,690, compared to $2,682 a year ago, and a 5% increase in retail unit sales.
• SG&A as a Percentage of Gross Profit – 67.1%, or 66.3% on an adjusted basis, up from 65.1% on an adjusted basis in the prior year and down from 67.4% on an adjusted basis from the prior quarter reflecting continued cost discipline.

Segment Results

Segment results⁽¹⁾ for the fourth quarter of 2024 were as follows:

• Domestic – Domestic segment income⁽²⁾ was $67 million compared to $74 million a year ago, a decrease of 9%. Revenue of $1.9 billion was up 4%.
• Import – Import segment income⁽²⁾ was $121 million compared to $137 million a year ago, a decrease of 12%. Revenue of $2.1 billion was up 5%.
• Premium Luxury – Premium Luxury segment income⁽²⁾ was $208 million compared to $195 million a year ago, an increase of 6%. Revenue of $2.9 billion was up 10%.
• AutoNation Finance - AutoNation Finance income was $1 million compared to a loss of $4 million a year ago. Year-over-year results reflect higher net interest margin, continued operating efficiencies, and a gain on third-party loan sales, partially offset by higher non-cash credit provisioning related to significant loan origination growth.

 

 

 

• Same-store Revenue – $26.2 billion, decreased $290 million or 1% from a year ago.
  • New Vehicle Revenue - $12.9 billion, an increase of $282 million or 2%.
  • Used Vehicle Revenue - $7.4 billion, a decrease of $603 million or 8%.
  • After-Sales Revenue - $4.5 billion, an increase of $111 million or 3%.
  • Customer Financial Services Revenue - $1.3 billion, a decrease of $71 million or 5%.
• Same-store Gross Profit - $4.7 billion, decreased $353 million or 7% from a year ago.
  • New Vehicle Gross Profit - $770 million, a decrease of $283 million reflecting unit profitability of $3,058, compared to $4,355 a year ago, partially offset by a 4% increase in unit sales.
  • Used Vehicle Gross Profit - $430 million, a decrease of $71 million reflecting unit profitability of $1,585, compared to $1,810 a year ago and a 5% decrease in unit sales.
  • After-Sales Gross Profit - $2.2 billion, an increase of $74 million or 4%.
  • Customer Financial Services Gross Profit - $1.3 billion, a decrease of $71 million reflecting unit profitability of $2,622 compared to $2,743 a year ago, and a 1% decrease in retail unit sales.
• SG&A as a Percentage of Gross Profit – 68.2%, or 66.6% on an adjusted basis, reflecting continued cost discipline.

Segment Results

Segment results⁽¹⁾ for the full year 2024 were as follows:

• Domestic - Domestic segment income⁽²⁾ was $255 million compared to $415 million a year ago, a decrease of 39%. Revenue of $7.1 billion was down 6%.
• Import - Import segment income⁽²⁾ was $477 million compared to $635 million a year ago, a decrease of 25%. Revenue of $8.2 billion was up 4%.
• Premium Luxury - Premium Luxury segment income⁽²⁾ was $676 million compared to $837 million a year ago, a decrease of 19%. Revenue of $10.1 billion was down 1%.
• AutoNation Finance - AutoNation Finance loss was $9 million compared to $14 million a year ago. Year-over-year results reflect higher net interest margin and continued operating efficiencies, partially offset by higher non-cash credit provisioning related to significant loan origination growth.

Capital Allocation, Liquidity, and Leverage

For the full year 2024, adjusted cash from operating activities was $1.1 billion, capital expenditures were $329 million, and adjusted free cash flow was $750 million, or 105% of adjusted net income.

During the quarter, AutoNation repurchased 0.6 million shares of common stock for an aggregate purchase price of $104 million.  For the full year 2024, AutoNation repurchased 2.9 million shares, or 7% of its shares outstanding at the beginning of the year, for an aggregate purchase price of $460 million, or $161 per share.

As of December 31, 2024, AutoNation had $1.3 billion of liquidity, including $60 million in cash and $1.3 billion of availability under its revolving credit facility, net of commercial paper borrowings. The Company's covenant leverage ratio was 2.4X at quarter-end and the Company had $3.8 billion of non-vehicle debt outstanding. 

The fourth quarter conference call may be accessed by telephone at 833-470-1428 (Conference ID:705922) at 9:00 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 following the call under "Events & Presentations." A playback of the conference call will be available after 12:00 p.m. Eastern Time on February 11, 2025, through March 4, 2025, by calling 866-813-9403 (Conference ID: 834719). Additional information regarding AutoNation's results can be found in the Investor Presentation available at: investors.autonation.com.  

 

About AutoNation, Inc.

AutoNation, one of the largest automotive retailers in the United States, offers innovative products, exceptional services, and comprehensive solutions, and empowers its customers to make the best decisions for their needs. With a nationwide network of dealerships strengthened by a recognized brand, we offer a wide variety of new and used vehicles, customer financing, parts, and expert maintenance and repair services. Through DRV PNK, we have raised over $40 million for cancer-related causes, demonstrating our commitment to making a positive difference in the lives of our Associates, Customers, and the communities we serve.

Please visit www.autonation.com, investors.autonation.com, and www.x.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," "estimates," "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, and investments, including AutoNation Finance, statements regarding our expectations for shareholder returns and the future performance of our business and the automotive retail industry, including during 2025, 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: our ability to implement successfully our strategic acquisitions, initiatives, partnerships, and investments, including our investments in digital and online capabilities and mobility solutions; our ability to maintain or improve gross profit margins; our ability to maintain or gain market share; legal, reputational, and financial risks resulting from cyber incidents and the potential impact on our operating results; the receipt of any insurance or other recoveries in connection with any cyber incidents; our ability to successfully implement and maintain expense controls; our ability to maintain and enhance our retail brands and reputation and to attract consumers to our own digital channels; economic conditions, including changes in unemployment, interest, and/or inflation rates, consumer demand, fuel prices, and tariffs; our ability to acquire and integrate successfully new acquisitions; restrictions imposed by vehicle manufacturers and our ability to obtain manufacturer approval for franchise acquisitions; the success and financial viability and the incentive and marketing programs of vehicle manufacturers and distributors with which we hold franchises; 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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SOURCE AutoNation, Inc.