AutoNation - America's largest automotive retailer, today announced that its retail new vehicle unit sales in April 2012, as reported to the applicable automotive manufacturers, totaled 20,534, an increase of 12% as compared to April 2011. Retail new vehicle unit sales in April 2012 for AutoNation's operating segments were as follows:
AutoNation New Vehicle Unit Retail Sales Month April 2012
6,306 for Domestic, up 9% versus April 2011,
10,358 for Import, up 16% versus April 2011, and
3,870 for Premium Luxury, up 10% versus April 2011.
Overall, U.S. industry sales rose only 2 percent in April. It was the smallest monthly advance since July. Hyundai and Kia recorded posted their tiniest increases in 20 months. Ford and General Motors lost ground in the U.S. .
Through April, U.S. sales are up 10 percent from a year earlier, echoing the industry's full-year increases for 2010 and 2011.
Mike Jackson Chairman and CEO of AutoNation today reported to Wall Street an all time record for 1st quarter 2012 adjusted earnings. Earnings for the quarter were $0.56 per share, a 22% improvement over last year's 1st quarter earnings of $0.46. The report beat a consensus estimate from analysts by 6% and continues to show the continued strength of the auto retailing giant. Total revenue increased 10% to $3.7 billion dollars for the quarter as the company sold a total of 107,000 units of both new and used vehicles.
Retail unit sales for the company were up 10% overall as similar sales for the industry had increased 7% over the same time period indicating continued modest strength of the U.S. Domestic economy. Domestic new vehicle unit sales showed the largest increase for the company, followed by premium luxury, with a more modest increase in “import” sales.
AutoNation New Vehicle Unit Sales 1st Quarter 2012
Domestic new vehicle sales up 16%
Imports new vehicle sales up 6%
Premium luxury new vehicles sales up 14%
On a “regional basis, sales in certain areas of the U.S. were as follows, California sales for new vehicles increased +6%, Florida sales for new vehicles increased +13%, and Texas sales for new vehicles increase +17%.......
In a continuing program for share repurchase, 11.7 million company shares were repurchased for $405 million dollars during the 1st quarter of this year; and since 1999 the company has bought back over 400 million of its outstanding shares for a total of $7 billion dollars at an average repurchase price of $17 per share.
Mike Jackson Chairman and CEO of AutoNation joined the team of CNBC "Squawk Box" in New York to discuss the current state of the U.S. economy and possible solutions for the current issues facing the United States. He also released the following retail sales figures for the company today in the "Press Release" from the company's headquarters in Ft. Lauderdale, Florida.
" AutoNation, Inc. (NYSE: AN), America’s largest automotive retailer, today announced that its retail new vehicle unit sales in March 2012, as reported to the applicable automotive manufacturers, totaled 25,489, an increase of 15% as compared to March 2011. Retail new vehicle unit sales in March 2012 for AutoNation’s operating segments were as follows:"
AutoNation March 2012 New Vehicle Unit retail sales
7,991 for Domestic, up 26% versus March 2011,
13,403 for Import, up 10% versus March 2011, and
4,095 for Premium Luxury, up 10% versus March 2011.
"For the first quarter of 2012, AutoNation’s retail new vehicle unit sales, as reported to the applicable automotive manufacturers, increased 13%, with Domestic up 17%, Import up 12%, and Premium Luxury up 12%, in each case as compared to the first quarter of 2011." . . . Mr. Jackson tells Becky Quick, Joe Kernen, and Andrew Ross Sorkin of the CNBC team.
* The Company will provide additional information during the first quarter earnings call, scheduled for April 25, 2012 at 11:00 a.m. Eastern.
On a regional basis, the company saw Texas unit sales up 17% and Florida up 16%...In March, Ford was up 25%, Toyota up 20%, and Mercedes up 18% and for the 1st quarter, AutoNation retail sales are up 13%.
Consequently, AutoNation is raising its full year industry forecast for new unit sales to – mid 14 million new vehicle units for 2012.
" There is ample credit available with a host of product offerings by AutoNation as Toyota & Honda inventories continue to improve; Mike Jackson explained, and 'there has never been a more optimistic time in America for the auto industry as the industry has been restructured and there is now a more clear regulatory road map with regard to CAFÉ standards which recently have come from Washington.'"
" New vehicle unit sales are quickly moving back to 16 million unit annual sales rate because of the following three reasons." Mr. Jackson explains . . .
1. Age of the U.S. Fleet - “The average age of the auto fleet is now 10.8 years old, and even though cars and trucks last longer these days, they can’t go on forever.”
2. Innovation - “New models stimulate sales and automakers are making over their fleets more frequently – now at the rate of 25% a year. A few years ago, the redesign rate was average of 15%.”
3. Financing - auto financing is more available than it has been in recent years. Capital is abundant, money is available, and car buyers are a good credit risk. A little known fact is that people are more likely to default on a mortgage than they are on a vehicle loan. All of these reasons helped contribute to our record performance in 2011, as our EPS from continuing operations rose 30%.”
Mr. Jackson remains “confident” in AutoNation’s strong position within the industry as the spread of the company’s retail sales stores is within the Right Footprint for the continental United States as AutoNation’s portfolio strategy has been consistent for a decade in strategically maximizing market density. "Our goal is to represent every major brand in the markets we operate.” . . . Mike Jackson goes on to say.
" We have the right 'Brand Mix' and the 'Right Business Model' for operations and believe we have put in place an industry-lead infrastructure for engaging and satisfying customers that will not only serve our company well but also will be very difficult for our competitors to duplicate.”
The company remains aggressive in maximizing “Capital Allocation” indicated by the current and ongoing “Share Repurchase Program” of $6 billion and the company is Embracing the Digital Future in all aspects of its internal operations as well as its interface with current and future customers.
“We have begun to develop "AutoNation Direct", our vision for the future. Using a computer or a smartphone, customers will be able to shop for a vehicle by make and model, lifestyle and functionality.” As it is well known that customers shop by 'vehicle type'. They may want to look at prices and features for half-a-dozen small crossovers from different manufacturers. That would require visiting multiple websites or multiple retailers. . . and AutoNation is able to offer one-stop shopping.”
“Digitizing the sales process will pay big dividends in the back office as well. We have already centralized store level accounting at our Shared Services Center in Irving, Texas. Government regulations make buying a car complicated and the average deal generates 65 different pages. Instead of the retailer inputting the data multiple times, we can scan all of the forms and store the data in a central location.” Additionally, we can streamline our processes by having consumers only input their data once and by capturing their signatures digitally.
Health Care Policy
Mike Jackson weighed in with Donald Trump as a clear advocate of expanding "choice" of available health care insurance across state lines while offering incentives to individual’s for practicing good personal health habits. This would go far in lowering premiums, rather than “mandating” health insurance purchases by all U.S. citizens which seems to be clearly “unconstitutional” as viewed by the observers of the Supreme Court hearings. Recently, the Justices seemed to hold an animus view of the newly passed and controversial Health Care Reform Act legislation particularly the mandate provisions but a final ruling will not come down from the court until possibly this Summer.
Energy Policy
1) America needs a coherent energy policy that leads to North American energy independence that creates and keeps jobs and capital in the U.S.
2) Conventional wisdom five years ago was America running out of natural gas but because of American ingenuity, innovation and entrepreneurship, we now have an abundance.
3) The same principles need to be, can and are being applied to petroleum. North America can be energy independent. North America imports 25% today.
4) United States spent more dollars on imported oil than any year in 2011.
5) We need to drill in North America. We need pipelines to move it. Let China be dependent on Middle East, not America.
6) Drive down North American price of petroleum. Appropriate gas tax to keep consumer aligned with fuel efficiency.
Being a victim of a purse theft is upsetting enough, but when that includes the loss of your car key, driver’s license, debit card and cell phone you know you have a problem. Lucky for this customer, it was Lazaro Prats who received her frantic call and immediately took charge of the situation. He arranged for a tow for the car, a replacement key, a new registration, a ride to the dealership and lunch in the service area while she waited. But most importantly, Lazaro assisted the distraught customer with genuine concern and sincerity. It was his emotional support, his ongoing reassurance and his seamless handling of the situation that exceeded this customer’s expectations.
Lazaro Receiving the Award
'We Thank Lazaro for his service in going "Above and Beyond" to help a person in need.'
You’ve just purchased a brand new Subaru and attend a “New Owners Clinic” at the dealership. On your way home, you hit a curb and blow a tire. You limp back to the dealership expecting to find everyone closing up shop. After a 10 hour work day and 2 hours volunteering their time at the Clinic, associates Paul and Ken are pulling out of the parking lot when they notice the customer. Despite it being 8:00 PM- they REOPEN the service drive, find a new tire, remount and balance it. The customer is on his way in an hour, and Paul and Ken wrap up their 13 hour day providing exceptional customer service because it was the right thing to do!
Receiving the Award from Dave Dunn - General Manager
We Thank Paul and Ken for their service to the community . .
. . while going "Above and Beyond" to serve a person in need.
Dave Dunn GM (Left) - Ken (Center) and Paul (Right)
The last place you want to be on a dark and rainy night is stranded in a barely lit parking lot with a car that won’t start. The customer was cold, alone, wet and scared and was told by her roadside assistance that a tow truck would take more than hour. Associate Martin Fiello was leaving for the day when he overheard the customer talking with the receptionist at the dealership. He took the call, diagnosed the problem as a dead battery and immediately went to assist the customer. On site, he jump started her car but the story doesn’t end there. He followed her to the dealership to make sure she didn’t experience any mechanical problems. The service department had already closed so Martin drove the customer home to make sure that she arrived safety. Despite the fact that Martin was NOT the customer’s salesperson he exceeded expectations by coming to the rescue of a customer in a predicament!!!
..."Our congratulations and thanks go out to Martin and his Family for his service to the community and a person in need."
Mike Jackson Chairman and CEO of AutoNation appeared on CNBC to announce the company’s retail new car sales figures. In a continued strong retail sales environment for the company, the results for February 2012 were as follows.
AutoNation Retail New Vehicle Unit Sales Month of February 2012 Year over Year
Domestic up 18%
Imports up 16%
Premium Luxury up 20%
Sales figures reflected continued strong "domestic" sales, as Chrysler showed a stunning 43% increase of overall new vehicle sales in the AutoNation stores and Ford followed with a firm month of sales increase of 24% . There were strong premium luxury sales as well with Mercedes Benz up 27%.
As for imports, Toyota sales experienced a rebound from inventory depressed levels - up 18% over February 2011 and Nissan up 24%.
Some of the regional economic markets, such as Florida, saw sales increase of 15%; but the most regional strength was in Texas which showed a 32% increase.
'We believe 2012 industry new vehicle sales will be approximately 14 million units; Mr. Jackson explains as the U.S. consumer is replacing their older vehicles for more fuel efficient, technologically advanced models and as gas prices rise the industry has responded with more fuel efficient models.'
'The magic number for fuel economy now in consumer’s mind is 40 MPG for a car and 25 MPG for an SUV or Truck. In 2008 there were only 3 cars offered that met the 40 MPG requirement. Now, in 2012 there are 36 models that meet the 40 MPG standard. SUVs and Trucks show an increase in available models as well with 20 being offered in 2008 that met the 25 MPG threshold vs 40 today. This is an impressive achievement in design and engineering shown by the major manufactures which show that if the necessity arises and the industry takes fuel economy seriously, achievements in fuel efficiency can be realized.'
'This has helped lower fuel consumption in the U.S. as gasoline consumption is down 12% along with fewer miles driven. Mike Jackson continues that the threshold for consumer “freak out” is now higher than $4.00 as we have seen $4.00 twice already. The economy is "stronger" and the industry is "better prepared". Now the “Freak Out” price may be shifting more towards $5.00 per gallon.'
Mike Jackson Chairman and CEO of AutoNation the largest auto retailer in the United States, joined forces with industry leaders Mr. Bob Carter of Toyota America and Wayne Huizenga of Huizenga Holdings on CNBC from Nova Southeastern University’s H. Wayne Huizenga School of Business, at the Rose and Alfred Miniaci Performing Arts Center to highlight new fuel-efficient vehicles for the 21st-century.
Bob Carter Vice President of Toyota North America, joined Mr. Jackson and Mr. Huizenga in highlighting Toyota’s newest step into the fuel-efficient hybrid car market with a more modestly priced vehicle. A new “PRIUS C” hybrid vehicle was introduced by Toyota this week that will cost about $18,900 and achieve 53 miles per gallon. Mr. Carter indicated that consumers are looking for more “fuel efficiency in the market today” and Toyota is introducing this more modestly priced vehicle that achieves 53 miles per gallon rather at the more modest price.
When asked about the current demand for more fuel-efficient vehicles, Mr. Jackson indicated that though the industry has introduced a whole new range of technologies in achieving higher fuel efficiencies, it remains to be seen whether the consumers are going to pay the higher “up front” costs for hybrids and electric vehicles.
Mr. Jackson continues, “I can tell you ‘Andrew”, (speaking to Andrew Sorkin and Becky Quick of CNBC), that the demand for fuel-efficient vehicles will follow the price of gasoline. At $4.00 dollars a gallon, consumers will be stampeding through the doors for more fuel-efficient vehicles. At a price less than that, it is difficult for the customer to realize their return on investment at less than $4.00 dollars a gallon.
'If the auto industry can close the “pricing gap”, and the return on investment becomes “two or three” years, there will be significant acceptance for the vehicles. "But I agree", Mike Jackson continues, 'the industry has made tremendous strides over the past five years and the internal combustion engines are now achieving 40 miles per gallon and are continually competitive with the new fuel efficiency technologies and now we're getting fuel-efficienceis of 53 and 54 miles per gallon, demonstrating that the gap is shrinking and the return on investment should be obtained in a more reasonable amount of time. There is no question that the industry is “all in” for advancing fuel efficiency of the vehicles they produce, though they had fought this in the past. Today it is clear they have committed to "change", but it remains to be seen if the American consumer will buy the new technology.'
Mr. Huizenga weighed in on the conversation and indicated that all avenues of approach need to be realized to solve the fuel efficiency problem, but most importantly; the “price point” for advanced fuel efficient vehicles needs to fall in line for a more acceptable “return on investment” for the consumer.'
Mr. Jackson concluded that there was a clear consensus that major hurdles have been achieved by the auto industry, but believes there is more work to do to achieve the natural balance of the technologies, the pricing, and the ability of the American consumer to buy.
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AutoNation, Inc. (NYSE: AN), America’s largest automotive retailer, today announced that its retail new vehicle unit sales in January 2012, as reported to the applicable automotive manufacturers, totaled 15,966, an increase of 7% as compared to January 2011. Retail new vehicle unit sales in January 2012 for AutoNation’s operating segments were as follows:
AutoNation Unit Sales Month of January 2011
__________________________
4,894 for Domestic, up 4% versus January 2011,
8,097 for Import, up 9% versus January 2011, and
2,975 for Premium Luxury, up 8% versus January 2011.
AutoNation expects to report February 2012 retail new vehicle unit sales on Friday, March 2, 2012.
Mike Jackson Chairman and CEO of AutoNation, released the company’s earnings for the 4th quarter for 2011 to “Wall Street”, and the was proud to announce that the company achieved a record “all time high” of adjusted quarterly EPS from continuing operations of $0.51 for the 4th quarter, an 13% increase per-share basis; as compared to $0.45 for the same period in the prior year.
Fourth quarter 2011 revenue totaled $3.7 billion dollars, compared to $3.2 billion of the same period of 2010 . . . an increase of 13% which was driven primarily by stronger new and used vehicle revenue. The company also reported an increase of 7% in operating income to $144 million. In the fourth quarter, total U.S. industry new vehicle retail sales increased 7%. In comparison, during the same period, AutoNation’s new vehicle unit sales increased 13%, or 10% on a same store basis.
For the full year of 2011, adjusted EPS from continuing operations of $1.94 was a record as well, up 24% from 2010. Revenue for the year was up 11% over prior year.
In 2011, AutoNation repurchased 17.1 million shares for $583.4 million at an average price per share of $34.14. From January 1 to January 25, 2012, they repurchased an additional 3.5 million of shares for $122 million at an average price per share of $34.74. Since Mr. Jackson arrived at the company in 1999, they have bought back 395 million shares for $6.5BN at an average price of $16.44 per share.
Additionally, today Mr. Jackson announced that the Board of Directors has authorized the repurchase of up to an additional $250 million of AutoNation common stock. AutoNation currently has $278 million remaining as an authorization for share repurchase.
AutoNation has an optimal brand and market mix that positions us for strong performance in new vehicle sales as the market rebounds. Mr. Jackson indicated that as the company looks at 2012, “we believe that the improvement in new vehicle sales will continue”.
“This recovery has three drivers. The first, is the age of the fleet on the road which is now 11 years old. The second is the accelerated pace of new products being launched by all the OEM’s and finally is the availability of credit and financing to our customers."
Mr. Jackson continues, “Our planning assumption for 2012 industry new vehicle unit sales is 14 million units which would be a 10% improvement over 2011; and, AutoNation has consistently demonstrated its ability to perform in what we expect to be a multi-year recovery in auto retail".
