AutoNation Reports 2018 Fourth Quarter and Full Year Results

AutoNation Reports 2018 Fourth Quarter and Full Year Results

AutoNation Implements Restructuring and Cost Savings Plan

- EPS from continuing operations was $1.02, and total revenue was $5.4 billion

- AutoNation incurred approximately $0.08 per share, or $9 million, in restructuring-related charges during the fourth quarter of 2018

- The tax reform bill positively impacted fourth quarter 2017 net income from continuing operations by $41 million, or $0.45 per share

- AutoNation implements corporate and regional restructuring and cost savings plan expected to reduce costs by approximately $50 million annually

PR Newswire

FORT LAUDERDALE, Fla., Feb. 22, 2019

FORT LAUDERDALE, Fla., Feb. 22, 2019 /PRNewswire/ -- AutoNation, Inc. (NYSE: AN), America's largest automotive retailer, today reported fourth quarter 2018 net income from continuing operations of $93 million, or $1.02 per share. Restructuring-related charges of $0.08 per share, or approximately $9 million, were incurred during the fourth quarter of 2018.  Fourth quarter 2017 net income from continuing operations totaled $152 million, or $1.64 per share. Fourth quarter 2017 EPS from continuing operations included a benefit of $0.45 per share due to the enactment of the federal tax reform bill.

Fourth Quarter Results
Fourth quarter 2018 revenue totaled $5.4 billion compared to $5.7 billion in the year-ago period. Same-store fourth quarter 2018 revenue totaled $5.3 billion compared to $5.5 billion in the year-ago period, a decrease of 4%. Same-store fourth quarter 2018 gross profit of $832 million decreased by 2% compared to $846 million in the year-ago period. Same-store Customer Financial Services gross profit per vehicle retailed was an all-time record of $1,851.

Restructuring and Cost Savings Plan
AutoNation previously announced a cost savings plan and a corporate and regional restructuring to improve efficiency and profitability that further positions the Company for long-term success. The Company's plan to reduce costs by approximately $50 million annually includes a reorganization and realignment of its operating structure. A key driver is the consolidation of its regional structure from three regions to two regions. As noted above, AutoNation incurred restructuring-related charges in connection with this plan during the fourth quarter 2018. The Company expects to incur additional restructuring-related charges in the first quarter of 2019 that are currently estimated to be lower than the charges incurred during the fourth quarter of 2018.

Segment Results

Segment results(1) for the fourth quarter 2018 were as follows:

  • Domestic - Domestic segment income(2) was $55 million compared to year-ago segment income of $67 million, a decrease of 18%.
  • Import - Import segment income(2) was $69 million compared to year-ago segment income of $75 million, a decrease of 9%.
  • Premium Luxury - Premium Luxury segment income(2) was $91 million compared to year-ago segment income of $106 million, a decrease of 13%.

For the full year ended December 31, 2018, AutoNation reported net income from continuing operations of $396 million, or $4.34 per share, compared to net income from continuing operations of $435 million, or $4.43 per share, for the same period in the prior year. AutoNation's revenue for full year 2018 totaled $21.4 billion, which was down slightly compared to $21.5 billion for the same period in the prior year.

The fourth quarter conference call may be accessed by telephone at (888) 769-8515 (password: AutoNation) at 11:00 a.m. Eastern Time today or on AutoNation's investor relations website at http://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 February 22, 2019, through March 15, 2019, by calling (866) 505-9252 (passcode: 8698).

(1)

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 FCA US; the Import segment is comprised of stores that sell vehicles manufactured primarily by Toyota, Honda, Nissan, and Hyundai; and the Premium Luxury segment is comprised of stores that sell vehicles manufactured primarily by Mercedes-Benz, BMW, Lexus, and Audi.



(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 automotive retailer, is transforming the automotive industry through its bold leadership, innovation, and comprehensive brand extensions. As of December 31, 2018, AutoNation owned and operated over 325 locations from coast to coast. AutoNation has sold 12 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. Through its DRV PNK initiative, AutoNation is committed to drive out cancer, create awareness and support critical research. AutoNation continues to be a proud supporter of the Breast Cancer Research Foundation and other cancer-related charities.

Please visit investors.autonation.com, www.autonation.com, www.autonationdrive.com, www.twitter.com/autonation, www.twitter.com/CEOMikeJackson, www.facebook.com/autonation, and www.facebook.com/CEOMikeJackson, where AutoNation discloses additional information about the Company, its business, and its results of operations.

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," "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 our brand extension strategies, and expectations for restructuring and cost savings plan, future results and the future performance of our franchises (including with respect to sales of used vehicles and parts and accessories) and the automotive retail industry, as well as 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 interest rates, fuel prices, and tariffs; new and used vehicle margins; the success and financial viability and the incentive and marketing programs of vehicle manufacturers and distributors with which we hold franchises; our ability to successfully implement, and customer adoption of, our brand extension strategies; our ability to identify, acquire, and build out suitable locations in a timely manner; our ability to maintain and enhance our retail brands and reputation and to attract consumers to our own digital channels; our ability to integrate successfully acquired and awarded franchises and to attain planned sales volumes within our expected time frames; restrictions imposed by vehicle manufacturers and our ability to obtain manufacturer approval for acquisitions; 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 INCOME

(In millions, except per share data)



Three Months Ended December 31,


Twelve Months Ended December 31,


2018


2017


2018


2017













Revenue:












New vehicle

$

3,066.6


$

3,345.3


$

11,751.6


$

12,180.8

Used vehicle


1,212.4



1,208.1



5,123.3



4,878.4

Parts and service


868.0



854.1



3,447.6



3,398.3

Finance and insurance, net


245.4



247.2



981.4



939.2

Other


19.3



28.8



108.9



137.9

Total revenue


5,411.7



5,683.5



21,412.8



21,534.6













Cost of sales:












New vehicle


2,930.4



3,184.2



11,235.5



11,592.4

Used vehicle


1,138.7



1,130.1



4,781.6



4,563.2

Parts and service


476.1



479.4



1,892.3



1,907.6

Other


18.6



22.6



106.1



112.4

Total cost of sales


4,563.8



4,816.3



18,015.5



18,175.6













Gross profit


847.9



867.2



3,397.3



3,359.0













Selling, general, and administrative expenses


631.5



622.1



2,509.8



2,436.2

Depreciation and amortization


42.2



40.6



166.2



158.6

Franchise rights impairment


-



-



8.1



-

Other income, net


(23.1)



(24.8)



(64.7)



(79.2)













Operating income


197.3



229.3



777.9



843.4













Non-operating income (expense) items:












Floorplan interest expense


(37.0)



(26.3)



(130.4)



(97.0)

Other interest expense


(29.0)



(32.2)



(119.4)



(120.2)

Interest income


0.3



0.2



1.1



1.0

Other income (loss), net


(3.1)



2.9



0.2



9.3













Income from continuing operations before income taxes


128.5



173.9



529.4



636.5













Income tax provision


35.6



22.4



133.5



201.5













Net income from continuing operations


92.9



151.5



395.9



435.0













Income (loss) from discontinued operations, net of income taxes


(0.2)



(0.2)



0.1



(0.4)

























Net income

$

92.7


$

151.3


$

396.0


$

434.6

























Diluted earnings (loss) per share*:












Continuing operations

$

1.02


$

1.64


$

4.34


$

4.43

Discontinued operations

$

-


$

-


$

-


$

-













Net income

$

1.02


$

1.64


$

4.34


$

4.43

























Weighted average common shares outstanding


90.7



92.3



91.3



98.2













Common shares outstanding, net of treasury stock, at period end


90.0



91.6



90.0



91.6


* 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 Highlights

Three Months Ended December 31,


 Twelve Months Ended December 31, 


2018


2017


$ Variance


% Variance


2018


2017


$ Variance


% Variance

Revenue:






















New vehicle

$

3,066.6


$

3,345.3


$

(278.7)


(8.3)


$

11,751.6


$

12,180.8


$

(429.2)


(3.5)

Retail used vehicle


1,141.5



1,138.4



3.1


0.3



4,807.6



4,577.1



230.5


5.0

Wholesale


70.9



69.7



1.2


1.7



315.7



301.3



14.4


4.8

Used vehicle


1,212.4



1,208.1



4.3


0.4



5,123.3



4,878.4



244.9


5.0

Finance and insurance, net


245.4



247.2



(1.8)


(0.7)



981.4



939.2



42.2


4.5

Total variable operations


4,524.4



4,800.6



(276.2)


(5.8)



17,856.3



17,998.4



(142.1)


(0.8)

Parts and service


868.0



854.1



13.9


1.6



3,447.6



3,398.3



49.3


1.5

Other


19.3



28.8



(9.5)





108.9



137.9



(29.0)



Total revenue

$

5,411.7


$

5,683.5


$

(271.8)


(4.8)


$

21,412.8


$

21,534.6


$

(121.8)


(0.6)













































Gross profit:






















New vehicle

$

136.2


$

161.1


$

(24.9)


(15.5)


$

516.1


$

588.4


$

(72.3)


(12.3)

Retail used vehicle


71.2



75.2



(4.0)


(5.3)



327.6



308.0



19.6


6.4

Wholesale


2.5



2.8



(0.3)





14.1



7.2



6.9



Used vehicle


73.7



78.0



(4.3)


(5.5)



341.7



315.2



26.5


8.4

Finance and insurance


245.4



247.2



(1.8)


(0.7)



981.4



939.2



42.2


4.5

Total variable operations


455.3



486.3



(31.0)


(6.4)



1,839.2



1,842.8



(3.6)


(0.2)

Parts and service


391.9



374.7



17.2


4.6



1,555.3



1,490.7



64.6


4.3

Other


0.7



6.2



(5.5)





2.8



25.5



(22.7)



Total gross profit


847.9



867.2



(19.3)


(2.2)



3,397.3



3,359.0



38.3


1.1























Selling, general, and administrative expenses


631.5



622.1



(9.4)


(1.5)



2,509.8



2,436.2



(73.6)


(3.0)























Depreciation and amortization


42.2



40.6



(1.6)





166.2



158.6



(7.6)



Franchise rights impairment


-



-



-





8.1



-



(8.1)



Other income, net


(23.1)



(24.8)



(1.7)





(64.7)



(79.2)



(14.5)



Operating income 


197.3



229.3



(32.0)


(14.0)



777.9



843.4



(65.5)


(7.8)























Non-operating income (expense) items:






















Floorplan interest expense


(37.0)



(26.3)



(10.7)





(130.4)



(97.0)



(33.4)



Other interest expense


(29.0)



(32.2)



3.2





(119.4)



(120.2)



0.8



Interest income


0.3



0.2



0.1





1.1



1.0



0.1



Other income (loss), net


(3.1)



2.9



(6.0)





0.2



9.3



(9.1)



Income from continuing operations before income taxes

$

128.5


$

173.9


$

(45.4)


(26.1)


$

529.4


$

636.5


$

(107.1)


(16.8)























Retail vehicle unit sales:






















New 


78,370



87,234



(8,864)


(10.2)



310,839



329,116



(18,277)


(5.6)

Used


54,985



55,944



(959)


(1.7)



237,722



234,148



3,574


1.5



133,355



143,178



(9,823)


(6.9)



548,561



563,264



(14,703)


(2.6)























Revenue per vehicle retailed:






















New 

$

39,130


$

38,349


$

781


2.0


$

37,806


$

37,011


$

795


2.1

Used

$

20,760


$

20,349


$

411


2.0


$

20,224


$

19,548


$

676


3.5























Gross profit per vehicle retailed:






















New 

$

1,738


$

1,847


$

(109)


(5.9)


$

1,660


$

1,788


$

(128)


(7.2)

Used

$

1,295


$

1,344


$

(49)


(3.6)


$

1,378


$

1,315


$

63


4.8

Finance and insurance

$

1,840


$

1,727


$

113


6.5


$

1,789


$

1,667


$

122


7.3

Total variable operations(1)

$

3,395


$

3,377


$

18


0.5


$

3,327


$

3,259


$

68


2.1



Operating Percentages


Three Months Ended December 31,



 Twelve Months Ended December 31, 














2018 (%)



2017 (%)



2018 (%)


2017 (%)


































Revenue mix percentages:






















New vehicle


56.7



58.9



54.9


56.6












Used vehicle


22.4



21.3



23.9


22.7












Parts and service


16.0



15.0



16.1


15.8












Finance and insurance, net


4.5



4.3



4.6


4.4












Other


0.4



0.5



0.5


0.5














100.0



100.0



100.0


100.0


































Gross profit mix percentages:






















New vehicle


16.1



18.6



15.2


17.5












Used vehicle


8.7



9.0



10.1


9.4












Parts and service


46.2



43.2



45.8


44.4












Finance and insurance


28.9



28.5



28.9


28.0












Other


0.1



0.7



-


0.7














100.0



100.0



100.0


100.0


































Operating items as a percentage of revenue:






















Gross profit:






















New vehicle


4.4



4.8



4.4


4.8












Used vehicle - retail


6.2



6.6



6.8


6.7












Parts and service


45.1



43.9



45.1


43.9












Total


15.7



15.3



15.9


15.6












Selling, general, and administrative expenses


11.7



10.9



11.7


11.3












Operating income


3.6



4.0



3.6


3.9


































Operating items as a percentage of total gross profit:






















Selling, general, and administrative expenses


74.5



71.7



73.9


72.5












Operating income


23.3



26.4



22.9


25.1














(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.

 

 

 AUTONATION, INC. 

 UNAUDITED SUPPLEMENTARY DATA 

 ($ in millions) 



Segment Operating Highlights

Three Months Ended December 31,


 Twelve Months Ended December 31, 


2018


2017


$ Variance


% Variance


2018


2017


$ Variance


% Variance













































Revenue:






















Domestic

$

1,745.0


$

1,895.1


$

(150.1)


(7.9)


$

7,134.5


$

7,452.8


$

(318.3)


(4.3)

Import


1,646.2



1,749.9



(103.7)


(5.9)



6,786.4



6,873.4



(87.0)


(1.3)

Premium luxury


1,894.1



1,937.8



(43.7)


(2.3)



7,010.9



6,832.7



178.2


2.6

Total


5,285.3



5,582.8



(297.5)


(5.3)



20,931.8



21,158.9



(227.1)


(1.1)

Corporate and other


126.4



100.7



25.7


25.5



481.0



375.7



105.3


28.0

Total consolidated revenue

$

5,411.7


$

5,683.5


$

(271.8)


(4.8)


$

21,412.8


$

21,534.6


$

(121.8)


(0.6)













































Segment income*:






















Domestic

$

54.7


$

66.6


$

(11.9)


(17.9)


$

249.3


$

257.1


$

(7.8)


(3.0)

Import


68.5



75.2



(6.7)


(8.9)



304.7



303.1



1.6


0.5

Premium luxury


91.4



105.5



(14.1)


(13.4)



340.9



348.8



(7.9)


(2.3)

Total 


214.6



247.3



(32.7)


(13.2)



894.9



909.0



(14.1)


(1.6)























Corporate and other


(54.3)



(44.3)



(10.0)





(247.4)



(162.6)



(84.8)



Add:  Floorplan interest expense


37.0



26.3



10.7





130.4



97.0



33.4



Operating income

$

197.3


$

229.3


$

(32.0)


(14.0)


$

777.9


$

843.4


$

(65.5)


(7.8)























* 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


25,144



28,263



(3,119)


(11.0)



102,015



111,028



(9,013)


(8.1)

Import


34,780



38,641



(3,861)


(10.0)



142,556



150,422



(7,866)


(5.2)

Premium luxury


18,446



20,330



(1,884)


(9.3)



66,268



67,666



(1,398)


(2.1)



78,370



87,234



(8,864)


(10.2)



310,839



329,116



(18,277)


(5.6)













































Brand Mix - Retail New Vehicle Units Sold
























 Three Months Ended December 31, 



 Twelve Months Ended December 31, 














2018 (%)



2017 (%)



2018 (%)


2017 (%)


































Domestic:






















Ford, Lincoln


11.5



13.0



12.2


13.6












Chevrolet, Buick, Cadillac, GMC


11.4



11.1



11.1


10.7












Chrysler, Dodge, Jeep, Ram


9.2



8.3



9.5


9.4












Domestic total


32.1



32.4



32.8


33.7


































Import:






















Toyota


19.0



17.9



19.4


18.6












Honda


13.1



12.9



13.7


13.1












Nissan


4.5



6.6



5.3


6.8












Other Import


7.8



6.9



7.5


7.2












Import total


44.4



44.3



45.9


45.7


































Premium Luxury:






















Mercedes-Benz


8.8



9.5



8.0


8.1












BMW


6.2



5.4



5.2


4.7












Lexus


2.5



2.7



2.3


2.6












Audi


2.2



2.6



2.3


2.4












Jaguar Land Rover


2.2



1.7



2.0


1.6












Other Premium Luxury 


1.6



1.4



1.5


1.2












Premium Luxury total


23.5



23.3



21.3


20.6




































100.0



100.0



100.0


100.0












 

 

 AUTONATION, INC

 UNAUDITED SUPPLEMENTARY DATA, Continued

 ($ in millions)





















































Capital Expenditures / Stock Repurchases


 Three Months Ended December 31,


 Twelve Months Ended December 31,







2018


2017


2018


2017


















Capital expenditures (1)

$

122.0

$

108.3

$

393.6

$

332.9





Cash paid (received) for acquisitions, net of cash acquired (2)

$

(0.7)

$

20.0

$

67.2

$

76.8





Proceeds from exercises of stock options

$

1.8

$

15.0

$

17.8

$

39.7





Stock repurchases:













Aggregate purchase price

$

-

$

-

$

100.0

$

434.9





Shares repurchased (in millions)


-


-


2.1


10.1































Floorplan Assistance and Expense


 Three Months Ended December 31,


 Twelve Months Ended December 31,



2018


2017


 Variance


2018


2017


 Variance














Floorplan assistance earned (included in cost of sales)

$

30.7

$

33.4

$

(2.7)

$

117.9

$

122.1

$

(4.2)

New vehicle floorplan interest expense


(34.5)


(24.1)


(10.4)


(121.7)


(90.4)


(31.3)














Net new vehicle inventory carrying benefit (cost)

$

(3.8)

$

9.3

$

(13.1)

$

(3.8)

$

31.7

$

(35.5)



























Balance Sheet and Other Highlights




























December 31, 2018


December 31, 2017






















Cash and cash equivalents

$

48.6

$

69.2









Inventory

$

3,650.5

$

3,365.6









Total floorplan notes payable

$

3,997.7

$

3,806.9









Non-vehicle debt

$

2,600.5

$

2,703.7









Equity

$

2,716.0

$

2,369.3









New days supply (industry standard of selling days)


 60 days


 53 days









Used days supply (trailing calendar month days)


 42 days


 43 days
















































Key Credit Agreement Covenant Compliance Calculations(3)


























Leverage ratio




 3.06x









Covenant


less than or equal to


 3.75x






















Capitalization ratio




60.6%









Covenant

less than or equal to


70.0%
























(1)

Includes accrued construction in progress and excludes property associated with capital leases entered into during the period.

(2)

Excludes capital leases and deferred purchase price commitments.

(3)

Calculated in accordance with our credit agreement as filed with the SEC.

 

 

 AUTONATION, INC. 

 UNAUDITED SAME STORE DATA 

 ($ in millions, except per vehicle data) 



































Operating Highlights


Three Months Ended December 31,


 Twelve Months Ended December 31, 



2018


2017


$ Variance


% Variance


2018


2017


$ Variance


% Variance

Revenue:

















New vehicle

$

3,023.1

$

3,250.5

$

(227.4)


(7.0)

$

11,519.8

$

11,761.3

$

(241.5)


(2.1)

Retail used vehicle


1,111.7


1,103.1


8.6


0.8


4,649.6


4,397.8


251.8


5.7

Wholesale


68.9


67.0


1.9


2.8


302.0


288.9


13.1


4.5

Used vehicle


1,180.6


1,170.1


10.5


0.9


4,951.6


4,686.7


264.9


5.7

Finance and insurance, net


242.5


241.4


1.1


0.5


964.4


911.7


52.7


5.8

Total variable operations


4,446.2


4,662.0


(215.8)


(4.6)


17,435.8


17,359.7


76.1


0.4

Parts and service


847.3


831.7


15.6


1.9


3,354.9


3,288.7


66.2


2.0

Other


19.3


28.4


(9.1)




108.7


136.9


(28.2)



Total revenue

$

5,312.8

$

5,522.1

$

(209.3)


(3.8)

$

20,899.4

$

20,785.3

$

114.1


0.5



































Gross profit:

















New vehicle

$

134.4

$

158.2

$

(23.8)


(15.0)

$

506.5

$

573.4

$

(66.9)


(11.7)

Retail used vehicle


69.8


73.1


(3.3)


(4.5)


319.5


296.7


22.8


7.7

Wholesale


2.0


2.9


(0.9)




8.1


7.6


0.5



Used vehicle


71.8


76.0


(4.2)


(5.5)


327.6


304.3


23.3


7.7

Finance and insurance


242.5


241.4


1.1


0.5


964.4


911.7


52.7


5.8

Total variable operations


448.7


475.6


(26.9)


(5.7)


1,798.5


1,789.4


9.1


0.5

Parts and service


382.8


364.5


18.3


5.0


1,513.3


1,441.9


71.4


5.0

Other


0.7


6.1


(5.4)




2.8


25.3


(22.5)



Total gross profit

$

832.2

$

846.2

$

(14.0)


(1.7)

$

3,314.6

$

3,256.6

$

58.0


1.8


















Retail vehicle unit sales:

















New 


77,511


84,655


(7,144)


(8.4)


305,615


316,914


(11,299)


(3.6)

Used


53,496


54,019


(523)


(1.0)


229,379


223,559


5,820


2.6



131,007


138,674


(7,667)


(5.5)


534,994


540,473


(5,479)


(1.0)


















Revenue per vehicle retailed:

















New 

$

39,002

$

38,397

$

605


1.6

$

37,694

$

37,112

$

582


1.6

Used

$

20,781

$

20,421

$

360


1.8

$

20,270

$

19,672

$

598


3.0


















Gross profit per vehicle retailed:

















New 

$

1,734

$

1,869

$

(135)


(7.2)

$

1,657

$

1,809

$

(152)


(8.4)

Used

$

1,305

$

1,353

$

(48)


(3.5)

$

1,393

$

1,327

$

66


5.0

Finance and insurance

$

1,851

$

1,741

$

110


6.3

$

1,803

$

1,687

$

116


6.9

Total variable operations(1)

$

3,410

$

3,409

$

1


-

$

3,347

$

3,297

$

50


1.5



































Operating Percentages


 Three Months Ended December 31, 


 Twelve Months Ended December 31, 











2018 (%)


2017 (%)


2018 (%)


2017 (%)


























Revenue mix percentages:

















New vehicle


56.9


58.9


55.1


56.6









Used vehicle


22.2


21.2


23.7


22.5









Parts and service


15.9


15.1


16.1


15.8









Finance and insurance, net


4.6


4.4


4.6


4.4









Other


0.4


0.4


0.5


0.7











100.0


100.0


100.0


100.0


























Gross profit mix percentages:

















New vehicle


16.1


18.7


15.3


17.6









Used vehicle


8.6


9.0


9.9


9.3









Parts and service


46.0


43.1


45.7


44.3









Finance and insurance


29.1


28.5


29.1


28.0









Other


0.2


0.7


-


0.8











100.0


100.0


100.0


100.0


























Operating items as a percentage of revenue:

















Gross profit:

















New vehicle


4.4


4.9


4.4


4.9









Used vehicle - retail


6.3


6.6


6.9


6.7









Parts and service


45.2


43.8


45.1


43.8









Total


15.7


15.3


15.9


15.7











(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.

 

 

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SOURCE AutoNation, Inc.

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