AutoNation Office of Corporate Communications and Public Policy

AutoNation Achieves Milestone of Its' 9 Millionth Vehicle Sold

 

         Mike Jackson, Chairman and CEO of AutoNation the largest car retailer in the United States was in Bradenton Florida to award a new Ford F150 pickup truck to an AutoNation customer who was purchasing a new truck for his small business. Mr. James Gordon, a 92 year old small business owner, was the 9 millionth retail vehicle customer; from the founding of the company by Wayne Huizenga.  

 

        Appearing on CNBC Mr. Jackson responded to Joe Kernen anchor of the morning show "Squawk Box" in that 'cars were flying off of the lots in the United States in July according to “Auto Data” a national car data sales accounting service .  Nearly 15.7 million vehicles will be sold on an annual sales rate - versus 14 million a year ago.  Mr. Jackson may have been conservative in his sales projections for the U.S. this year but the trend in sales figures so far has been confirming his projections.   With the stock at an all-time high, the company sold over 25,000 units in the month of July. 

 

         "What makes this accomplishment even more remarkable is how quickly we've achieved it," said Mike Jackson.  "It's a real testament to our business philosophy and our coast-to-coast team of over 21,000 associates who have the talent and tenacity to accomplish amazing things." 

 

        Total retail new vehicle unit sales in July 2013, as reported to the applicable automotive manufacturers, were 25,403, an increase of 17% as compared to July 2012. Same-store retail new vehicle unit sales in July 2013 were 24,195, an increase of 12% as compared to July 2012.  Total retail new vehicle unit sales for AutoNation's operating segments were as follows:

 

AutoNation New Vehicle Retail Unit Sale July 2013

7,950  for Domestic, up 23% versus July 2012,

13,066 for Import, up 14% versus July 2012, and

4,387 for Premium Luxury, up 19% versus July 2012.

 

 

 

  

 There were 25 selling days in July 2013 versus 24 selling days in July 2012. AutoNation expects to report August 2013 retail new vehicle unit sales on Thursday, September 5, 2013.

 

AutoNation Announces Record Earnings for 2nd Quarter 2013 - Up 11% Year Over Year

 

 

          Mike Jackson, Chairman and CEO of AutoNation the largest auto and truck retailer in the United States; appeared on CNBC with Becky Quick, Joe Kernen and Steve Liesman this morning to announce the company’s continuing record of all-time highs in quarterly earnings.

 

        EPS from continuing operations for the 2nd quarter of 2013 was $0.73 per share, up 11% compared to second quarter 2012 adjusted EPS from continuing operations of $0.66 ($0.64 on a GAAP basis).   Total revenue was $4.4 billion, an increase of 13%, as compared to the same year-ago period. This represents an increase across all major business sectors resulting in an operating income of $181 million dollars for the quarter; an increase of 10% as compared to the same year-ago period.

         

        Mr. Jackson responded to Joe Kernen when asked about the projected annual production of vehicles in the U.S. for the current year. "Well Joe, I forecasted the mid-15 million units for the industry and was one of the most optimistic projections 'out there'.  Now,  I can absolutely confirm the industry is on track to do that."

        

        "If you look at the two issues concerning the U.S. market, namely interest rates, well, auto retail is very much active in the short end of the yield curve. We see little change in the interest rates for our customers or the cost of our inventory maitanence. Nevertheless, some interest rates will move higher.  But, it looks like it's sometime down the road, for autos. An increase of 100 basis points means about $15 a month more that customers will have to pay on an avrage loan."

 

        "Gas prices are the second issue that we have to contend with. The consumer is now used to a gas price of around $3.50 per gallon, an now the freakout number is up to around $5 a gallon."

 

            "The new buyer has embraced the new technologies around fuel economy, multi-speed transmissions, and for the life of me, I can't understand why gasoline is $3.50 a gallon. With the average miles driven annually in the U.S. down from the peak of '07; and oil  gushing out all over america, we have dramatically increased supply.  In the country people are driving more fuel efficient cars;  so, any common sense would say, gas prices are coming down."

 

       Mr. Jackson continues.  " There has been a dramatic change in consumer behavior compared to five years or ten years ago. First the industry has a technical solution for fuel economy. hybrids and electrics. that's part of it. that's 3 to 4% of the business. we've had a dramatic break through in turbo chargeing, direct injection, multi-speed transmissions, the computer systems on the car that can manage and integrate those complex systems, they work seamlessly to give you great performance and dramatically improve fuel efficiency without having smaller cars or to drive slower."

 

        "But, as you know, Joe, Americans don't like going backwards in life. it's a tough sell to say, hey, you want better fuel economy. you got to get something slower. This doesn't work in  America.  The industry has provided a great technical solution in new engineering."

 

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AutoNation Announces Total Retail New Vehicle Unit Sales Increased of 14% - Versus June 2012

 

          AutoNation today announced total vehicle unit sales for the month of July 2012 saw an increase of 14% year over year in the companyy's stores nationwide for a total of 25,162 units. There were 26 selling days in June 2013 versus 27 selling days in June 2012. AutoNation expects to report July 2013 retail new vehicle  unit sales on Friday, August 2, 2013.  The states of Florida and California saw an increase of 8% and 10% respectively. 

 

 

AutoNation New Vehicle Unit Sales for June 2013

 8,130  for Domestic, up 15% versus June 2012,

12,460 for Import, up 8% versus June 2012, and

4,572  for Premium Luxury, up 8% versus June 2012.

 

 

 

 

AutoNation Announces Total Retail New Vehicle Unit Sales of 26,372 in May 2013 – UP 11%

 

          Mike Jackson Chairman and CEO of AutoNation - America's largest automotive retailer, today appeared on CNBC with the legendary Bob Lutz, past Vice Chairman of General Motors, to announce the company's  total retail new vehicle unit sales in May 2013 as reported to the applicable automotive manufacturers were 26,372 - an increase of 11% as compared to May 2012. Same-store retail new vehicle unit sales in May 2013 were 25,566; an increase of 8% as compared to May 2012.  Total retail new vehicle unit sales for the month were as follows.

 

AutoNation New Unit Sales for May 2013

 8,287 for Domestic, up 14% versus May 2012

 13,181 for Import, up 7% versus May 2012

 4,904  for Premium Luxury, up 17% versus May 2012

 

        Mike Jackson explained to Michelle Caruso-Cabrera of CNBC and guest hosts of its morning show Squawk Box that ...  'Driven by truck sales, up 27%, and a 16% increase in California real estate sales as housing is particularly strong;  the U.S. is on the way back to over 16 million units" [annual unit sales rate].  Mr. Jackson was pleased to give his economic overview of the current state of the U.S. auto industry.   "This is a new industry with "real accomplishments".  He goes on to say ... 'thanks goes to visonaries like Bob Lutz, as the industry can now make a profit even at 11 million units of annual sales and we all remember the days when the American manufacturers needed 16 million units just to break even.  Now, because of the renaissance it undertook over the past years to reduce legacy costs, reorganize its management structures, reduce inventory, and streamline delivery systems, Detroit has accomplished "real" change that has made a strategic economic difference that will yield results for generations to come' ...

    

       ... 'Couple that with an increased product cadence of new design and engineering, and you have an industry with true momentum in today's U.S.  economy.'  

 

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Mike Jackson on Fox Business – “The Economy is Genuinely Improving Based on Fundamentals”

 

          Mike Jackson, Chairman and CEO of AutoNation the largest car and truck retailer in America appeared on Fox Business from Phoenix Arizona during the company's  national “re-branding campaign tour”. Mr. Jackson was pleased with the company’s performance over the past year with a 29% increase in stock price and that the change in the national branding of all the AutoNation stores was going so well. It will cntinue throughout the summer.

         Liz Clamon business news analyst, asked Mr. Jackson about his view of the current economic conditions; and what where the contributing factors for AutoNation’s great performance? 

 

          Mr. Jackson responded. 'Well Liz, I think that the U. S. economy is genuinely is improving.   While it has been on fiscal and monetary stimulus since 2008, now there are continuing significant bright spots in the areas of energy, housing, and the automotive industries that are based on "real fundamentals"'....

         ' Firstly [Liz]  – “Fracking", invented by an Texas entrepreneur in the oil industry, has unlocked tremendous energy reserves in the United States which has  provide the increase in production by 2 million barrels per day in oil production.  This also has created much needed, high paying jobs. Secondly – house prices have stabilized and are now rising.  This has improved the conditions with the construction industry and there is now a brighter employment picture as we will build 1 million new homes this year. Finally – the U.S. car industry is providing the most advanced products ever to the American consumer; and is continuing its renaissance. This should remain in place for years. 

 

        'As a result of the crisis of 2008-2009 causing an almost complete stop of the purchase or repair of their vehicles for about 11 years, the U. S. consumer is now having to fix the car they have, or come in and talk to us to buy a new one. But whether it's a vehicle from Detroit, the Japanese, or the differentiated Germans, the customer never has had a better choice; from small cars through pickup trucks with improved fuel efficiencies, advanced design, quality fit and finish, as well as the availability of historically low interest rates.'  This is what is fueling the continued strong performance.

          Liz Clamon then asked Mike his view of energy prices for the summer. Mr. Jackson indicated that because of the increased production both in the U.S. and you can buy a barrel of oil from Canada for as low as $65 per barrel. consequently gasoline prices are “coming down” which is very unusual; " We are producing "summer blends which adds about 20-25 cents per gallon to the price of gasoline and prices are still falling.  If this continues, by the Fall, prices should be even lower. '

 

     "Well, we'll leave it there for now Mike"; it was good to see you in Phoenix where you are on your "rebranding campaign." 

      

     "Yes, Liz we're  here in Phoenix with our  billion dollar business, making the change in the branding of our stores in the Southwest;  and are welcoming our latest additions; our new Honda and Hundai stores for the Phoenix area.'

 

Thank you

 

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AutoNation Announces Total Retail New Unit Sales Up 10% for April 2013 - Total of 22,515 units

 

          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."

 

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AutoNation Reports All-Time Record Quarterly EPS from Continuing Operations

 

          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."

 

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AutoNation Reports a 7% Increase in total retail new vehicle unit sales for March of 2013 Year over Year Total 27,199 Units

         

    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.

AutoNation Announces Total February Retail New Vehicle Unit Sales of 21,168 - An increase of 6%

 

               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.

 

AutoNation Contributes 1 Million Dollars to Recent Charity - "Give Kids the World"

      

          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.'

 

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