Autonation, Inc. · NYSE:AN
Autonation — Q1 2022 Earnings Presentation
26 slides from Autonation's earnings presentation, Apr 21, 2022
Slide 1: Investor Presentation First Quarter 2022
Investor Presentation First 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 – Q1 2022
Business Highlights – Q1 2022 AutoNation USA Ramp Up Strategy on Track Over 90% of used vehicles retailed self-sourced Opened two additional AutoNation USA stores in Charlotte and directly from consumers Charleston, expanding geographical reach. Currently have 11 stores with 12 more planned over the
Slide 4: Financial Highlights – Q1 2022
Financial Highlights – Q1 2022 EPS an All-Time Record $5.78 Revenue of $6.8 Billion EPS increased 107% YoY * Revenue of $6.8 billion increased 14% YoY driven by Used vehicle revenue growth of 47% YoY Repurchased 3.5 Million Shares Used Retail Units Sold Increased 11% AutoNation repurchased 3.5 milli
Slide 5: Q1 2022 Financial Highlights - Adjusted
Q1 2022 Financial Highlights - Adjusted First Quarter ($ in millions, except per share data) 2022 2021 Variance Total revenue $6,752.8 $5,903.8 14.4% Gross profit $1,308.9 $1032.8 26.7% Selling, general, and administrative expenses $741.4 $647.9 14.4% SG&A / Gross Profit 56.6% 62.7% -610bps Operatin
Slide 6: Q1 2022 Key Financial Metrics
Q1 2022 Key Financial Metrics Total Revenue ($MM) Variable Gross Profit ($MM) After-Sales Gross Profit +14% $6,753 +31% $846 ($MM) $5,904 $643 $461 +19% $389 Q1 '21 Q1 '22 Q1 '21 Q1 '22 Q1 '21 Q1 '22 SG&A/Gross (%) Operating Income ($MM) Adjusted EPS ($) 62.7% -610bps +54% $519 +107% $5.78 $337 56.6
Slide 7: Q1 2022 Gross Profit & Operating Income Walk
Q1 2022 Gross Profit & Operating Income Walk $72 $2 $1,309 $51 $155 $4 Gross Profit $1,033 Q1 2021 New Used F&I P&S Other Q1 2022 $276 $94 $2 $2 $519 Operating $337 Income Q1 2021 Gross Profit SG&A D&A Other Q1 2022 7
Slide 8: New Vehicle Retail
New Vehicle Retail Days Sales Outstanding (DSO) New Retail Units 29 77,164 69,361 58,277 57,601 56,442 14 10 9 8 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 PVR ($) ► New Retail Units declined 19% YoY due to $6,450 $6,112 $5,484 $4,153 manufacturer supply shortages $2,739 ►
Slide 9: Used Vehicle Retail
Used Vehicle Retail Used Retail Units Days Sales Outstanding (DSO) 80,589 79,763 40 77,553 34 35 31 30 74,442 71,780 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 PVR ($) $2,239 $2,103 $2,063 ► Used Retail Units increased 11% YoY due to $1,744 $1,566 strong demand and limited
Slide 10: Finance & Insurance (F&I)
Finance & Insurance (F&I) Total Retail Units Revenue ($MM) 157,753 $369 $364 $349 $354 141,141 135,830 136,205 132,043 $313 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 PVR ($) $2,569 $2,678 $2,672 $2,218 $2,339 ► F&I PVR increased $454 YoY due to higher margins on service c
Slide 11: After-Sales
After-Sales Revenue ($MM) Gross Margin (%) $1,004 46% 45% 45% 46% 44% $951 $961 $944 $851 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Adjusted Gross Profit ($MM) $461 $433 $425 $426 ► After-Sales gross profit increased 19% YoY $389 primarily due to growth in customer pay, i
Slide 12: Adjusted SG&A/Gross Profit & Operating Inc Margin
Adjusted SG&A/Gross Profit & Operating Inc Margin Adj. SG&A / Gross Profit (%) 72.3% 67.2% ► Current market conditions and AutoNation’s digital capabilities continue to support 58.0% 56.6% significant expense leverage FY 2019 FY 2020 FY 2021 Q1 2022 Adjusted Operating Income Margin (%) 7.3% 7.7% ► L
Slide 13: EPS & Cash Flow
EPS & Cash Flow Adj. EPS ($) $18.14 ► AutoNation delivered record EPS from Continuing Operations in FY 2021, due to the $7.11 current supply/demand environment, strong $3.86 $3.88 $4.56 $3.51 operational execution, and disciplined expense management 2016 2017 2018 2019 2020 2021 Cash Flow From Opera
Slide 14: Capital Allocation
Capital Allocation Share Repurchases ($MM) $2,303 ► $2.4 billion of liquidity, including $608 million $497 $435 $100 $382 of cash and approximately $1.8 billion of $45 availability on our credit facilities as of March 2016 2017 2018 2019 2020 2021 31, 2022 Capital Expenditures ($MM) $394 $333 ► As o
Slide 15: AutoNation Investment Highlights
AutoNation Investment Highlights ► Largest and most recognized automotive retailer with diversified portfolio and business mix ► Ranked Top Dealership Group in US by Automotive News in 2021 ► Industry leading brand and over 500,000 5-star reviews according to Reputation ► AutoNation USA expansion pr
Slide 16: Optimal Brand Positioning within Diversified Portfolio
Optimal Brand Positioning within Diversified Portfolio FY 2021 Segment Income ► Comprehensive brand selection provides customers broad range of innovative products from all leading Domestic vehicle manufacturers 28% Premium Luxury 39% ► Strong OEM partnerships support customer service and retention
Slide 17: Diversified Revenue Mix Drives Profitability
Diversified Revenue Mix Drives Profitability FY 2021 Revenue(1) FY 2021 Gross Profit(1) Finance & Insurance 5% Parts & Finance & New Service Insurance 24% 14% New 28% 47% Used Used 34% Parts & 14% Service 34% ⁽¹⁾ Excludes Other ⁽¹⁾ Excludes Other ► Vehicle sales generate 38% of gross profit and crea
Slide 18: AutoNation USA Rollout Plan
AutoNation USA Rollout Plan ► Provides opportunity to expand geographic footprint and gain pre-owned market share ► Leverages experience from original 5 profitable pilot stores ► 11th store opened most recently in Charleston ► 12 additional stores targeted to be completed over the next 12 months ► O
Slide 19: Appendix
Appendix This presentation contains certain non-GAAP financial measures for which we have set forth below reconciliations to the most comparable GAAP measures. The Company believes that these measures improve the transparency of the Company’s disclosure, provide a meaningful presentation of the Comp
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted SG&A Twelve Months Ended Twelve Months Ended Twelve Months Ended ($ 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 Net Income/ Adjusted EPS ($ in millions, except per share data) Comparable Basis Reconciliations(1) Three Months Ended March 31, Income from Continuing Operations Before Income Taxes Income Tax Provision(2) Effective Tax Rate Net Income Diluted Earnings Per Share(3)
Slide 23: 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 24: 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 25: 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 26: Follow us on social media at @autonation
Follow us on social media at @autonation 26