Mike Jackson, Chairman and COE of AutoNation America's
largest automotive retailer, appearing on CNBC, announced today that the
company’s total retail new vehicle unit sales in April 2013, as reported to the
applicable automotive manufacturers, were 22,515, an increase of 10% as
compared to April 2012. Same-store
retail new vehicle unit sales in April 2013 were 21,950, an increase of 7% as
compared to April 2012. Total retail new
vehicle unit sales for AutoNation's operating segments were as follows:
AutoNation Total Retail Unit Sales April 2013
7,588 for Domestic,
up 20% versus April 2012,
10,853 for Import, up 5% versus April 2012, and
4,074 for Premium Luxury, up 5% versus April 2012.
There were 25 selling days in April 2013 compared to 24
selling days in April 2012. AutoNation expects to report May 2013 retail new
vehicle unit sales on Tuesday, June 4, 2013.
AutoNation also announces today that Mercedes-Benz has awarded a
new franchise to the company to be built in the Tampa, Florida market. The new franchise is subject to customary
conditions, and the new Mercedes-Benz store to be constructed by AutoNation is
expected to open in 2014. This will be AutoNation's 18th Mercedes-Benz
franchise. AutoNation currently sells approximately 11% of the Mercedes-Benz
vehicles in the United States.
Mr. Jackson stated, "We are pleased to expand our
Mercedes-Benz representation by adding a new franchise in a key market where we
don't currently represent Mercedes-Benz.
We are excited about the Mercedes-Benz product pipeline and to have the
opportunity to offer Mercedes-Benz products to more of our customers."
Mike Jackson
Chairman and CEO of AutoNation, the largest retailer of cars and trucks in the
United States, was interviewed by Becky Quick and Joe Kernen on CNBC today and was
pleased to report to Wall Street that EPS from continuing operations for the
company was at an all-time record high of $0.68 per share; up 21% compared
to the year-ago period. With total
revenue of $4.1 billion, up 12% compared to the year-ago period, with sales
increasing across all major business sectors the operating income was $169
million, which reflects an increase of 14% compared to the year-ago period.
On the Acquisition
front, AutoNation will acquire Honda and Hyundai stores in Phoenix, Arizona and
a Toyota store in Dallas, Texas with annual revenues of approximately $250
million to add to the total revenue of the U.S operations.
To provide
more detail, “first quarter net income from continuing
operations was $83 million, as compared to a net income from continuing operations of
$74 million, or $0.56 per share, for the same period in the prior year. This represents a 21%
improvement on a per-share basis. First quarter revenue of this year totaled
$4.1 billion, compared to $3.7 billion in the year-ago period, which is an increase of
12%, that was driven by a strong performance in all of the company's business sectors - new
vehicles, used vehicles, parts and service, and finance and insurance. AutoNation's retail new vehicle unit sales
increased 9% overall and 6% on a same store basis."
A pleased Mike
Jackson indicated that "AutoNation
delivered solid double-digit growth in operating income, which drove a 21%
increase in EPS from continuing operations in the first quarter of 2013, as profitability increased in each of our
business sectors.” The company continues
to expect that industry new vehicle sales will be approximately in mid-15
million units range in 2013 for total US annual vehicle sales."
AutoNation's First Quarter of 2013 Results:
Domestic - Domestic segment income was $59
million compared to year-ago segment income of $50 million.
Import -
Import segment income was $71 million compared to year-ago segment income of
$62 million.
Premium
Luxury - Premium Luxury segment income was $69 million compared to year-ago
segment income of $59 million.
Regarding
AutoNation's rebranding strategy; Mr. Jackson provided the following update. "Our
coast-to-coast rebranding rollout is on track, and as of March 31st, 30% of our
Domestic and Import units were sold under the rebranded AutoNation name."
Additionally, as part of
its continued expansion under the nationwide rebranded strategic initiative the
company also is announcing that it has signed agreements to acquire SanTan
Honda Superstore and Hyundai of Tempe in Phoenix, and Don Davis Toyota Scion in
Dallas. The annual revenue for all three
stores is approximately $250 million and together these stores sold
approximately 8,300 new and used retail units in 2012. The acquisitions are subject to manufacturer
approval and other customary closing conditions but are expected to be
completed in the second quarter of 2013.
"These acquisitions align with our
strategy to offer all of our core vehicle brands to consumers within our key
markets – Mr. Jackson stated. We are
pleased to add Honda and Hyundai franchises to our Phoenix platform. The franchises are in attractive automotive
retail locations and facilities, and the acquisitions will enhance our
franchise mix in Phoenix. We are also pleased to add a Toyota franchise to our
high-performing Dallas-Fort Worth platform."
Mike Jackson Chairman and CEO of AutoNation, America's largest automotive retailer, today appeared on CNBC to announce that the company’s total retail new vehicle unit sales in March 2013, as reported to the applicable automotive manufacturers, were 27,199, an increase of 7% as compared to March 2012. Same-store retail new vehicle unit sales in March 2013 were 26,441, an increase of 4% as compared to March 2012. There were 27 selling days in March 2013 compared to 28 selling days in March 2012. Total retail new vehicle unit sales for AutoNation's operating segments were as follows:
AutoNation New Retail Unit Sales for the Month of March 2013
8,448 for Domestic, up 6% versus March 2012
13,789 for Import, up 4% versus March 2012
4,962 for Premium Luxury, up 15% versus March 2012
Additionally, Mr. Jackson reported that for the first quarter of 2013, AutoNation's total retail new vehicle unit sales, as reported, increased 10%, with Domestic up 12%, Import up 6%, and Premium Luxury up 19%, in each case as compared to the first quarter of 2012. Same-store retail new vehicle unit sales as reported to the applicable automotive manufacturers increased 7% compared to the first quarter of 2012.
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AutoNation expects to report April 2013 retail new vehicle unit sales on Thursday, May 2, 2013.
Mike
Jackson Chairman and CEO of AutoNation - America's largest automotive retailer, appearing
on CNBC today, in an interview with Jim Cramer, announced the company's total retail new vehicle unit sales in
the month of February 2013, as reported to the applicable automotive manufacturers, were
21,168 total units, an increase of 6% as compared to February 2012. Same-store retail new
vehicle unit sales in February 2013 were 20,623 total units, an increase of 3% as compared
to February 2012. Total retail new
vehicle unit sales for AutoNation's operating segments were as follows:
AutoNation
Retail Unit Sales February 2013
6,655 - Domestic, up 8% versus February 2012,
10,467 - Import, up 0% versus February 2012
4,046 - Premium Luxury, up 19% versus February 2012.
On a
daily selling rate basis, AutoNation's total retail new vehicle unit sales
increased 10%. There were 24 selling
days in February 2013 compared to 25 selling days in February 2012.
Mike
Jackson begins..."It is always good to see you Jim [Jim Cramer of CNBC] ... As you said...Yes, these are really good times for the auto industry, and for once in my life I'm in the right place at the right time; and I have certainly paid my dues to get here..."
Let me begin ... 'first, the bright spots in the auto sales our premium retail unit sales are up 19%, pickup trucks are up 16 %, California sales were strong - up 10%. We see strong used car residual
values and there remains a still strong genuine replacement need by the U. S. consumer. Couple that with plenty of low cost financing, fantastic new products and the higher gas prices recently, and these factors are supporting the current monthly 15.4 million SAAR (Seasonally
Adjusted Annualized Selling Rate) in the U.S. marketplace. Additionally, we continue to see a car age of 11 years and 160,000 miles on the average vehicle that is being traded in [at our stores]". So the demand for new vehicles should continue; based on these factors.'
'Surprisingly, as I mentioned previously, the higher gas prices are actually supporting sales; and seems to be an incentive for the purchase of the newer car models
which are now providing a 20% increase in fuel efficiency. The consumer can now have
an accelerated cost payback in the purchase of a new vehicle at the higher fuel
prices as the engineering of newer engines is providing for higher fuel efficiencies and operating cost savings.
As to additional reasons for the strong retail sales... "To your point Jim", we see that - the consumer is watching ‘what’s going on down in
Washington’ and are saying that "we have had our austerity program and have gotten our house in order". They are not allowing the gridlock and dysfunction in Washington
to hold them back from ‘moving on with their lives’. Couple that with higher auto sales, stability in the housing market and an improving energy "factor" - "I think there is a chance for much stronger growth for the U.S. economy."
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AutoNation
expects to report March 2013 retail new vehicle unit sales on Wednesday, April
3, 2013.
In an appearance on the Fox Business News Network, Mike
Jackson - Chairman and CEO of AutoNation, joined Liz Claman, anchor of “The Closing
Bell”, to review where the U.S. auto industry was headed; this, particularly after a stunning recovery
of the “Big Three” auto-makers from the depression of U.S. vehicle sales a few years ago caused by the financial crisis of 2008-2009.
Mr. Jackson, was pleased that U.S. auto industry is currently
reaping the rewards of the strategic
initiatives and national reorganization it made during the recovery period up until today, as well as a cyclical recovery of the
U.S. consumer and the U.S. economy in general; despite the political gridlock in the nation's capital. ‘The auto industry continues to be a "bright spot" in the U.S. economy, and the
recovery should continue into the foreseeable future; Mike Jackson explained. This, as a result of the following "drivers" ... One, a true
replacement need, i.e. vehicles currently being traded in have 150,000 - 200,000 mile on them; two – well engineered and designed products are coming from all
auto makers; three – there has been a "stabilization" of housing prices and a sense of a
housing recovery in the economy; four – the auto industry remains a secure place to
lend, providing low interest financing, and five – the us consumer has repaired
their balance sheets at home and are moving on with their lives while seeming to ignore
the “dysfunction” in Washington DC.'
‘As far as rising prices of fuel, the industry has responded
with advanced engineered products that can offer a 20% improvement in fuel
efficiency while maintaining historic performance standards this provides the
customer the most advanced products ever made; providing a fuel
efficiency/performance ratio that is being enthusiastically accepted by the
customer.’ We should continue to see
strong sales patterns through this year achieving a mid 15 million SAAR (units
sold nationwide) for 2013.
Charity
“Give Kids the World”
AutoNation and Mr. Jackson announced the company's most recent
charity gift of 1 million dollars to its most current chosen charity "Give Kids the World"which is a
non-profit organization that exists only to fulfill the wishes of all children
with life-threatening illnesses and their families from around the world to
experience a memorable, joyful, cost-free visit to the Central Florida attractions,
and to enjoy the magic of Give Kids The World Village for as long as there is a
need.
Over 120,000 children have had their dreams come true at Give Kids The World. No child in need has ever been turned away. Give Kids The World is a place where families find joy, laughter, serenity, and a lifetime of memories.
'Our CFO (Mike Short) has been chairman of this charity for
the past 10 years... and one of our board members – "Bob Brown" has dedicated much
of his time all over the world to the benefit of children. This is an inspiring
charity.'
Mike Jackson Chairman and CEO of AutoNation personally appeared on CNBC, Bloomberg Television, and CNN today to announce retail revenues and earnings for the 4th quarter, and for the full year of 2012. Additionally, Mr. Jackson also announced a major milestone in the company's national dynamic, that all stores and operations will be united under the "AutoNation" brand; providing a consistently reliable, "peerless" experience of the highest quality for its customers - "nationwide".
____________________________
AutoNation,
Inc. (NYSE: AN), America's largest automotive retailer, today reported 2012
fourth quarter net income from continuing operations of $83 million, or $0.67
per share, compared to adjusted net income from continuing operations of $71
million, or $0.51 per share, for the same period in the prior year, a 31%
improvement on a per-share basis. On a
GAAP basis, fourth quarter 2011 net income from continuing operations was $70
million, or $0.50 per share.
Reconciliations of non-GAAP financial measures are included in the
attached financial tables.2012 fourth
quarter revenue totaled $4.2 billion, an increase of 13%, driven primarily by
stronger retail new vehicle unit sales.
AutoNation's retail new vehicle unit sales increased 17% on a same store
basis and were up 18% overall. Based on CNW Research data, in the fourth
quarter of 2012, total U.S. industry retail new vehicle unit sales increased
13%.
For the Fourth
Quarter of 2012 the results were as follows... EPS from continuing operations was an
all-time record of (1) $0.67, up 31% as compared to the fourth quarter of 2011 with an adjusted EPS
from continuing operations of $0.51 ($0.50 on a GAAP basis)
The total revenue for the company during the quarter was $4.2 billion dollars, up 13%
compared to the year-ago period, increasing across all major business sectors;
operating income of $169 million, an increase of 18% compared to the fourth
quarter of 2011.
For the full year
of 2012 the results were as follows. The adjusted EPS from continuing
operations an all-time record $2.54, up 31% compared to full year 2011 adjusted
EPS from continuing operations of $1.94. On a GAAP basis, full year EPS from
continuing operations was $2.52 in 2012 compared to $1.93 in 2011. The year 2012 marks the second consecutive
year of over 30% year-over-year growth in EPS from continuing operations.
With a total revenue of $15.7 billion, up
13% compared to 2011, increasing across all major business sectors; this yielded an operating
income of $645 million, an increase of 13% as compared to 2011.
Commenting
on the quarterly results, Mr. Jackson said, "We are very pleased with our
strong year-over-year growth across all areas of our business. We have delivered two consecutive years of
over 30% growth in earnings per share, and this quarter we set another record
for the highest ever annual and quarterly adjusted EPS from continuing
operations." Mr. Jackson added, "We are looking forward to a robust
new vehicle selling environment in 2013, as consumers enjoy an unprecedented
array of attractive product options and continued access to affordable credit.
We are expecting industry new vehicle sales to be approximately mid-15 million
units in 2013."
Launch of
AutoNation Brand
Mr. Jackson
also announced today that the company will be marketing its 210 Domestic and Import
franchises across the country under the AutoNation brand. The brand transition involves 23 manufacturer
brands and will roll out beginning February 1, 2013 in South Florida and will
be completed in all markets by the end of the second quarter. Commenting on the
branding initiative, Mike Jackson, said,
"The launch of the AutoNation brand 'unifies' us under one flag, 'AutoNation',
rather than as local market brands. We
have worked to provide a peerless customer experience across the
enterprise. AutoNation is a brand that
stands for leadership, transparency, and peerless customer care. This is an
incredibly important moment for us as a company and has the full support of our
manufacturer partners who approved the change to the AutoNation brand. Since my
arrival we have laid a foundation for this transition by investing more than
$3.7 billion in facilities, developing best practices in our stores and Shared
Service Center and completing strategic acquisitions across the country while
focusing on the customer as our number one priority."
_________________________
Share
Repurchase
During the
fourth quarter of 2012, AutoNation repurchased 1.3 million shares for an
aggregate purchase price of $49 million, at an average price of $39.21 per
share. For the full year ended December
31, 2012, AutoNation repurchased 16.6 million shares for an aggregate purchase
price of $581 million, at an average price of $34.89 per share. AutoNation has $319 million remaining Board
authorization for share repurchase.
Acquisitions
of Texas Stores
During the
fourth quarter, AutoNation also completed the acquisitions of Boardwalk Audi,
Boardwalk Porsche, Boardwalk Volkswagen, McKinney Volkswagen, Park Cities
Volkswagen, and Spring Chrysler Dodge Jeep Ram.
Together, the stores sold approximately 14,000 new and used retail units
in 2012 with approximately $590 million of revenue.
Segment
results(2) for the fourth quarter of 2012 were as follows:
Domestic - Domestic segment income(3) was $54
million compared to year-ago segment income of $44 million.
Import -
Import segment income was $60 million compared to year-ago segment income of
$49 million.
Premium
Luxury - Premium Luxury segment income was $80 million compared to year-ago
segment income of $73 million.
For the full
year ended December 31, 2012, the Company reported adjusted net income from
continuing operations of $320 million, or $2.54 per share, compared to adjusted
net income from continuing operations of $286 million, or $1.94 per share in
the prior year, an improvement of 31% on a per-share basis. On a GAAP basis, net income from continuing
operations for 2012, was $317 million, or $2.52 per share, compared to $284
million, or $1.93 per share, for the prior year. Reconciliations of non-GAAP financial
measures are included in the attached financial tables. The Company's revenue
for the full year ended December 31, 2012 totaled $15.7 billion, up 13%
compared to $13.8 billion 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 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 January 31, 2013 through February
11, 2013 by calling 800-391-9851 (password 75300).
Click on video icon to view
CNBC
Bloomberg
CNN
------------------------------------------------
(1) As compared to adjusted EPS from continuing
operations in prior periods.
(2) 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 Chrysler; 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. As of March 31, 2012, we revised the basis of
segmentation for our Import and Premium Luxury segments to reclassify our Audi
franchises from the Import segment to the Premium Luxury segment. In connection with this change, we have
reclassified historical amounts to conform to our current segment presentation.
Mike Jackson Chairman and CEO of AutoNation the largest auto retailer in the United States, joined Becky Quick and Joe Kernen on CNBC to announce the new unit retail sales for the company for the month of December 2012. December 2012 retail new vehicle unit sales were 27,958 - an increase of 15% versus December 2011. Fourth quarter 2012 retail new vehicle unit sales rose 16% versus fourth quarter 2011. Full year 2012 retail new vehicle unit sales increased 20% versus full year 2011.
AutoNation New Unit Retail Sales December 2012
Premium Luxury up 14% for December and full year up 13%
Domestic up 11% for December and for full year up 14%
Imports up 18% for December and for full year up 27%
In addition, Mr. Jackson indicated that the consumer believes the drama in Washington is "political theater" and that in the end there will always be a "deal". So, they are moving on with their lives and buying cars. This suggests good economic in growth in 2013, enough to support industry auto sales in the mid 15 million new vehicle units.
Appearing this weekend with Maria Bartiromo, host of the famed Wall Street Journal Report, Mike Jackson Chairman and CEO of AutoNation - the largest car and truck retailer in the world, reiterated his view that the U.S auto industry remains a "bright spot" in America's economy.
'The U.S. consumer has been maintaining their old' cars for the pat 10 years as Mr. Jackson explained that 'with the low interest rate environment and the excellent engineered products coming from the manufacturer's design centers, we expect this trend to continue strong into next year.'
In 2008 and 2009 the American car industry collapsed and there is a replacement need and U.S. auto sales should see a mid 14 million unit annual sales rate. Now, the American consumer is buying at a rate that indicates they believe that the responsible parties will not allow the U.S. to fall into recession by going into 'budget sequester"; pushing us over the "fiscal cliff"; and that cooler heads will prevail.
Mike Jackson Chairman and CEO of AurtoNation - the largest car and truck retailer in the United States, announced from CNBC in New York today the following retail results for the month of November 2012...
The results were as follows.
AutoNation November 2012 Retail New Retail Unit Sales
6,444 for Domestic, up 9% versus November 2011, 10,909 for Import, up 27% versus November 2011, and 5,218 for Premium Luxury, up 25% versus November 2011.
Other highlights for the month were 22,571 total new units were sold, highlighting that the auto industry is a bright spot in the U.S. economy. Mr. Jackson also announced that California sales were up 34%. In the "Great State of Texas" sales were up 27% and Florida sales were up 15%.
Import sales showed extraordinary results reflecting a comeback from the disaster in Japan; with Honda up 48%, but BMW lead the European imports; as sales were up 35% year over year.
AutoNation November unit sales were up 21% versus the industry 15% at retail according to CNW.
Becky Quick of CNBC asked the future of the economy and Christmas sales with the "fiscal cliff'" looming ahead in the near future. Mr. Jackson the he believed that "at the end of the day" Washington would "do the right thing" and not allow the "horrible" results that would befall the U.S. economy if it was allowed to fall over the "fiscal Cliff" because of the pending sequestration of tax hikes and budget cuts slated to "kick-in" January 1st 2013.
Mr. Jackson wnet on to announce two major Texas retail sales group acquisitions, representing approximately $575 million in revenue, which is the largest transaction of its kind in the U.S. in a decade. Theses acquisitions are expected to sell over 14,000 new and used units per year. This brings franchise count for AutoNation in Texas to 50.
"This is a tremendous acquisition for us" says Mr. Jackson, and he goes on to describe the first of thes new franchises as "Spring Chrysler Jeep Dodge and Ram in Huston which is the #1 store in Texas for their brands. Mr. Jackson and AutoNation warmly welcome this new sales operation group and its associates into the AutoNation fold. "We continue to believe in the resurgence of Chrysler's products and strategy of Sergio Marchione has done a walk on water performance."
Another was in the Dallas Fort Worth metropolitan area where AutoNation also bought "The Boardwalk Group" which will make AuutoNation the largest Porche Audi, VW retailer in the State of Texas. Mr. Jackson went on to explain that he has been building the "German portfolio of sales centers in the U.S. as he views the German manufactures as providing a highly engineered line of world class products and as of today AutoNation receives 29% of its operating profit from German manufactures. The Audi acquisition is the 3rd largest in texas, and will make AutoNation the largest Volkswagen retailer in Texas.
Mr. Jackson explained that "We love doing business in Texas and Governor Rick Perry has made the state so efficient for doing business as compared to California where it takes almost 3 time longer to get any significant progress made in any acquisitions."
Mike Jackson Chairman and CEO of
AutoNation was asked by CNBC “Squawk Box” as to that type of preparations was
the company going to undertake if Washington lawmakers would not be able to come to
an agreement how to mitigate the effect
of the federal budget “ sequester” that
has been scheduled to take place on January 1st 2013.
Mr. Jackson responded that the company’s
basic plan including forward marketing
plans for all operations have been allowed to
'remain in place' with the belief that there will be some compromise and
resolution formulating a “Grand Bargain" among the Executive Branch and the
Legislature on Capitol Hill. Hopefully this will mitigate the forced austerity program and tax increase set
to befall the U.S. Economy in 6 weeks.
"Of course if however the
"unthinkable" happens, the company will immediately reduce forward orders and
inventories, as well as freeze hiring to prepare for a recession. Fortunately,
AutoNation has developed and maintains an “investment grade balance sheet” which
will allow the company to ‘weather a recession storm’. But we remain positive
that if Washington can” get the deal done” the economy will rise above the
results of the agreement and move forward with positive results.'
'The best time to do this is right after a
Presidential election. Consequently, “time
is of the essence” as the majority of Americans view Washington’s normal mode
of operation as “dysfunctional”. This would provide an opportunity for the
parties in Washington to come together and solve this problem to show the U.S.
electorate that some compromise may be reached under these serious
circumstances.' Mr. Jackson continued.
"We believe the odds are better that
it [a "Grand Bargain"] will happen. After a presidential election is the best time to govern reasonably and solve problems."
Joe Kernen asked about the fact
that the best two week of sales in the year occur at the end of the year and
was surprised that this has been a reliable circumstance of past years,
particularly with regard to luxury vehicles. Mike Jackson responded that the year end
remains a bright spot in that at year end and the consumer is tends to reward
themselves for their own hard work over the past year. This pattern has develped over the past decade. As a reult, the car
industry has responded, providing the deepest discounts and best bargains for
those shopping for a new vehicle at the end of the year for the family.
