Autonation, Inc. · NYSE:AN
Autonation — Q3 2022 Earnings Presentation
25 slides from Autonation's earnings presentation, Oct 27, 2022
Slide 1: Investor Presentation Third Quarter 2022
Investor Presentation Third Quarter 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation 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 dee
Slide 3: Business Highlights – Q3 2022
Business Highlights – Q3 2022 Agreed to Acquire Moreland Auto Group Dealerships Repurchased 3.8 Million Shares During the Quarter Agreement to acquire stores from the Moreland Auto Group Repurchased 3.8 million shares for an aggregate purchase representing nine franchises at four dealerships in Colo
Slide 4: Financial Highlights – Structural Improvements Consistently Delivering
Financial Highlights – Structural Improvements Consistently Delivering EPS of $6.31 a Third Quarter Record After-Sales Gross Profit +13% YoY Reflecting GAAP EPS of $6.31 increased by 23% YoY Continued Momentum Adjusted EPS of $6.00 Increased 17% YoY driven by operational Consumer demand and repair c
Slide 5: Q3 2022 Adjusted Financial Highlights
Q3 2022 Adjusted Financial Highlights Third Quarter ($ in millions, except per share data) 2022 2021 Variance Total revenue $6,666.0 $6,379.5 4.5% Gross profit $1,312.8 $1,271.9 3.2% Selling, general, and administrative expenses $763.2 $723.7 5.5% SG&A / Gross Profit 58.1% 56.9% 120bps Operating inc
Slide 6: Q3 2022 Key Financial Metrics
Q3 2022 Key Financial Metrics Total Revenue ($MM) Variable Gross Profit ($MM) After-Sales Gross Profit $6,380 +4% $6,666 $846 -2% ($MM) $832 +13% $479 $425 Q3 '21 Q3 '22 Q3 '21 Q3 '22 Q3 '21 Q3 '22 SG&A/Gross (%) Adj. Operating Income Adj. EPS ($) ($MM) +17% +120bps 58.1% $6.00 56.9% -1% $503 $500 $
Slide 7: Q3 2022 Gross Profit Walk
Q3 2022 Gross Profit Walk (*in $mm) $54 $0 $1,313 $10 $35 $1,272 $12 Q3 2021 New Used CFS After-Sales Other Q3 2022 ____________________ 7 Refer to the Appendix for Non-GAAP Reconciliation
Slide 8: New Vehicle Retail
New Vehicle Retail New Retail Units Days Sales Outstanding (DSO) 58,277 15 57,890 57,601 11 10 56,442 9 8 55,565 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 PVR ($) $6,450 ► New PVR increased $450 YoY $6,112 $6,106 $5,934 ► Industry Retail Units down 4% from Q3 ‘21 AutoNati
Slide 9: Used Vehicle Retail
Used Vehicle Retail Used Retail Units Days Sales Outstanding (DSO) 79,763 40 40 35 34 77,553 30 77,080 75,355 74,442 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 PVR ($) ► Industry Used Retail Units declined 11% from $2,103 $2,063 Q3 ’21; AutoNation units declined 7% same $1
Slide 10: CFS
CFS Total Retail Units Revenue ($MM) $368 135,830 136,205 134,970 $364 132,043 $361 130,920 $354 $349 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 PVR ($) $2,755 ► CFS PVR increased $186 YoY mainly due to $2,724 $2,678 $2,672 higher margins on protection products and increas
Slide 11: After-Sales
After-Sales Revenue ($MM) Gross Margin (%) $1,036 $1,032 45.9% 46.0% 46.4% 45.0% 44.4% $1,004 $961 $944 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Gross Profit ($MM) $482 ► After-Sales gross profit increased 13% YoY $479 $461 with growth in customer pay, internal reconditi
Slide 12: Adjusted SG&A/Gross Profit & Operating Inc Margin
Adjusted SG&A/Gross Profit & Operating Inc Margin Adj. SG&A / Gross Profit (%) 72.3% 67.2% ► SG&A/Gross Profit remains well below 58.0% 56.6% 58.1% historical levels, slightly higher than recent 55.4% periods reflecting investments in technology and new business initiatives FY 2019 FY 2020 FY 2021 Q
Slide 13: EPS & Cash Flow
EPS & Cash Flow Adjusted EPS ($) $18.14 $18.23 $12.55 ► AutoNation has eclipsed Full Year 2021 Adj. $4.56 $7.11 EPS during the first nine months of 2022 $3.86 $3.51 $3.88 ► EPS growth fueled by record levels of 2016 2017 2018 2019 2020 2021 YTD 2021 YTD 2022 thru Q3 thru Q3 profitability and the ben
Slide 14: Capital Allocation
Capital Allocation Share Repurchases ($MM) $2,303 $1,921 ► $2.2 billion of liquidity, including $443 million of cash and approximately $1.8 billion of $1,213 availability on our credit facilities as of September 30, 2022 $497 $435 $382 $100 $45 ► From the end of 2020 through Q3’22 have 2016 2017 201
Slide 15: AutoNation Investment Highlights
AutoNation Investment Highlights ► Most admired automotive retailer with diversified portfolio and business mix ► Ranked Top Dealership Group in US by Automotive News in 2021 ► Industry leading brand and over 500,000 5-star reviews according to Reputation ► AutoNation USA expansion provides an attra
Slide 16: AutoNation USA Rollout Plan
AutoNation USA Rollout Plan ► Provides opportunity to expand geographic footprint and gain pre-owned market share ► Opened 12th store during the third quarter in Kennesaw, Georgia ► Overall performance of stores has exceeded planning assumptions ► Pace of store openings has been inhibited due to the
Slide 17: Select Historical Data
Select Historical Data Global Financial Crisis to 2021 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Avg. SAAR (mm) 13.1 10.3 11.5 12.6 14.3 15.4 16.4 17.4 17.5 17.1 17.2 17.0 14.5 14.9 14.9 New Retail SAAR (mm) 10.6 8.6 9.2 10.3 11.7 12.8 13.6 14.2 14.2 14.1 13.9 13.7 12.4 1
Slide 18: Appendix
Appendix This presentation contains certain non-GAAP financial measures for which we have set forth below reconciliations to the most comparable GAAP measures. The Company believes that these measures improve the transparency of the Company’s disclosure, provide a meaningful presentation of the Comp
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations Third Quarter 2022 Adjustments 19
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted SG&A Twelve Months Ended Twelve Months Ended Twelve Months Ended ($ in millions) December 31, 2021 December 31, 2020 December 31, 2019 SG&A as a Percentage SG&A as a Percentage SG&A as a Percentage SG&A of Gross Profit (%) SG&A of Gross Profit (%) SG&A of Gross Prof
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Operating Income Twelve Months Ended Twelve Months Ended Twelve Months Ended ($ in millions) December 31, 2021 December 31, 2020 December 31, 2019 Percentage of Revenue Percentage of Revenue Percentage of Revenue Operating Income (%) Operating Income (%) Operating I
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted After-Sales Gross Profit / Adjusted D&A / Adjusted Other Income ($ in millions, except per share data) Three Months Ended December 31, P&S Gross Profit Depreciation and amortization Other income, net 2021 2020 $ Variance 2021 2020 $ Variance 2021 2020 $ Variance As
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Net Income / Adjusted EPS (Annual) Twelve Months Ended December 31, Income from Continuing ($ in millions, except per share data) Operations Before Income Taxes Income Tax Provision(1) Net Income Diluted Earnings Per Share (2) 2021 2020 2019 2021 2020 2019 2021 2020
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Net Income / Adjusted EPS (Annual) ($ in millions, except per share data) Twelve Months Ended December 31, Income from Continuing Operations Before Income Taxes Income Tax Provision(1) Net Income Diluted Earnings Per Share (2) 2018 2017 2016 2018 2017 2016 2018 2017
Slide 25: Follow us on social media at @autonation
Follow us on social media at @autonation 25