Autonation, Inc. · NYSE:AN
Autonation — Baird Global Consumer, Technology & Services Conference 2024
15 slides from Autonation's conference presentation, Jun 6, 2024
Slide 1: Baird Global Consumer, Technology & Services Conference
Baird Global Consumer, Technology & Services Conference Thursday, June 6, 2024 Tom Szlosek Chief Financial Officer 1
Slide 2: Franchise Dealer Overview
Franchise Dealer Overview Attractive industry with strong cash flow characteristics 2018 – 2023 SAAR (M) Industry Fundamentals M 18 17 18 17 17 17 17 > AVG* • Macro backdrop favorable as new drivers 16 increased by +10M over 5 years and annual sales 16 15 16 remain below trend 15 15 15 14 • Efficien
Slide 3: AutoNation Footprint and Financial Overview
AutoNation Footprint and Financial Overview 40+ Stores 39 – 10 Stores 9 – 1 Stores New Used After-sales CFS WA MN NY FY23 Total Revenue: $27 Billion IL Revenue 47% 30% 17% 5% OH MD NJ NV CO MO VA FY23 Total Gross Profit: $5.1 Billion Gross Profit 21% 10% 42% 28% CA AZ KS TN NC NM AL SC FY23 Total Se
Slide 4: Business Model
Business Model The sale of a new vehicle starts the revenue cycle New Margins Structurally Higher Used-New Ratio: 1.1 from 0.8 Prior • Size, scale and scope in growing • Robust organic vehicle sourcing markets pipeline • Concentrated footprint with a strong • Used only AN USA retail locations portfo
Slide 5: Select Business Line Metrics
Select Business Line Metrics New Vehicle PVR ($) Used to New Ratio 7,000 1.6 5,942 6,000 1.4 1.3 5,000 4,579 4,342 1.2 1.2 1.2 1.1 4,000 3,328 1.0 1.0 0.9 3,000 2,340 0.8 2,000 1,783 0.8 1,000 0.6 0 0.4 2019 2020 2021 2022 2023 1Q24 2018 2019 2020 2021 2022 2023 1Q24 Expect PVR will remain above pre
Slide 6: Cash from Operations and Capital Allocation
Cash from Operations and Capital Allocation FY19 – FY23 Adjusted Free Cash Flow ($M)1 FY14 – FY23 Capital Allocation2 $M % 1,800 150 Return to Re-Invest in 1,600 1,518 140 Shareholders Business 130 1,400 CapEx 120 1,200 1,148 110 1,000 969 100 Share 819 800 Repurchases 90 600 80 400 366 70 200 60 M&
Slide 7: AutoNation Success Drivers
AutoNation Success Drivers Brand trusted and recognized by customers with standardized processes and cross selling capabilities Experienced and Diverse Team focused on delivering shareholder returns Strong cash conversion business with a ROIC-based approach to capital deployment Expanded product off
Slide 8: Appendix
Appendix This presentation contains certain non-GAAP financial measures for which we have set forth below reconciliations to the most comparable GAAP measures. The Company believes that these measures improve the transparency of the Company’s disclosure, provide a meaningful presentation of the Comp
Slide 9: Global Financial Crisis to 2024
SELECT HISTORICAL DATA Global Financial Crisis to 2024 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1Q 24* Avg. SAAR (mm) 13.1 10.3 11.5 12.6 14.3 15.4 16.4 17.4 17.5 17.1 17.2 17.0 14.5 14.9 13.7 15.6 15.4 14.9 New Retail SAAR (mm) 10.6 8.6 9.2 10.3 11.7 12.8 13.6
Slide 10: New Vehicles
New Vehicles 2008 – 2023 SAAR (M) UNIT SALES (K) 300 283 18 262 > AVG* 250 245 250 230 16 14 200 12 150 10 100 2019 2020 2021 2022 2023 8 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20 ’21 ’22 ’23 DSO 52 42 9 19 36 PVR ($) NOTES 7,000 6,000 5,942 • Industry inventory and sales remain below hist
Slide 11: Used Vehicles
Used Vehicles UNIT SALES (K) PVR ($) 350 2,200 304 2,045 300 300 274 2,000 246 1,795 1,800 250 241 1,800 1,719 200 1,600 1,409 150 1,400 100 1,200 2019 2020 2021 2022 2023 1,000 DSO 39 39 40 31 39 2019 2020 2021 2022 2023 USED TO NEW RATIO NOTES 1.6 1.4 1.3 • Late model used inventory and industry u
Slide 12: Customer Financial Services
Customer Financial Services FY19 – FY23 HISTORICAL PVR ($) NOTES 3,000 2,713 2,736 • CFS Performance continues to lead the industry – attaching on average more than 2 products per 2,443 vehicle 2,500 2,158 • More than 70% of PVR is product related including 2,000 1,935 vehicle service and other prot
Slide 13: After-Sales
After-Sales FY19 – FY23 GROSS PROFIT ($M) NOTES 2,300 2,200 2,139 2,100 • Greater vehicle complexity driving higher value of 2,000 repair orders 1,900 1,900 • Focused on capacity utilization and technician 1,800 development 1,700 1,673 1,623 1,600 • Key driver of customer interaction and retention –
Slide 14: Balance Sheet and Other Items
1Q 2024 Balance Sheet and Other Items ($ in millions) Balance Sheet and Other Highlights 3/31/23 12/31/23 3/31/24 Cash and cash equivalents $58.3 $60.8 $60.3 Inventory $2,196.2 $3,033.4 $3,002.7 Floorplan notes payable $2,185.7 $3,382.4 $3,270.9 Non-recourse debt $283.4 $258.4 $345.2 Non-vehicle deb
Slide 15: Free Cash Flow Reconciliation
Historical Free Cash Flow Reconciliation ($ in millions) Free Cash Flow Reconciliation 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 Net cash provided by operating activities $769 $1,208 $1,628 $1,668 $724 Change in Vehicle Floorplan – non-Trade (134) (233) (264) 179 425 Increase in Auto loans receiv
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