Slide 1: Fourth Quarter 2024 Earnings Release
Fourth Quarter 2024 Earnings Release February 11, 2025 1
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: Introduction
Introduction • Strong Q4 performance concluding an exciting year • New Vehicle per unit profitability more resilient than expected • Improved and stable used vehicle profitability reflecting improved AN execution • Continued steady growth and massive profit contribution from CFS and After-Sales • Ac
Slide 4: Overview
4Q 2024 Overview HIGHLIGHTS New Vehicle Same Store Unit Growth +12% YoY • Share gains and increased unit profitability QoQ Used Vehicle Gross Profit +14% • Unit profitability and Gross Profit up YoY Customer Financial Services #1 • Unit profitability increased both YoY and QoQ After-Sales Gross Prof
Slide 5: Financial Summary – Total Store
4Q 2024 Financial Summary – Total Store ($ in millions, except per share data) 4Q 2023 4Q 2024 YoY Total Revenue $6,767 $7,213 7% New Vehicle Revenue (+13% SS) Gross Profit $1,215 $1,242 2% Used +14%, CFS +6%, After-Sales +5% (SS) Adj. SG&A Expense $791 $824 4% Consistent core spending, disciplined
Slide 6: New Vehicles
4Q 2024 New Vehicles RETAIL UNITS & UNIT PROFITABILITY 71,434 • Units increased 12% (SS) YoY, with growth in 64,748 all three vehicle segments $3,653 • First sequential increase in unit profitability in $2,969 twelve quarters led by Premium Luxury • Disciplined inventory management (DSO down 25% fro
Slide 7: Used Vehicles
4Q 2024 Used Vehicles RETAIL UNITS & UNIT PROFITABILITY 65,151 64,829 • Used market remains constrained – industry sales ~flat YoY $1,538 • Lower priced vehicles continue to outperform – sub $20k units increased from 4Q 23 $1,455 • Unit profitability up 6% from 4Q 23 and stable throughout 2H 24 • To
Slide 8: Customer Financial Services
4Q 2024 Customer Financial Services GROSS PROFIT ($M) & UNIT PROFITABILITY $366 $347 • Strong CFS performance continues – unit profitability increased sequentially by $2,674 $2,686 ~$100 • Robust product attachment and finance penetration for new and used vehicles • Continued growth of AN Finance –
Slide 9: AutoNation Finance
4Q 2024 AutoNation Finance ORIGINATIONS ($M) & AVERAGE FICO Weighted Average FICO $1,057 • FY24 $1.1B originations, ~ 3x 2023 678 $336 • Sold remaining third party, sub-prime portfolio, 623 recognizing a $7.4 million gain FY 23 FY 24 • > 30-day Delinquencies 2.6% vs. 6.5% prior year PORTFOLIO BALANC
Slide 10: After Sales
4Q 2024 After Sales REVENUE ($M) & GROSS MARGIN (%) $1,141 $1,154 • Revenue growth 4% (SS), gross profit growth 48.4% 5% (SS) • Growth led by Warranty and Customer Pay 47.3% • Gross Margin up 110 bps – improved parts and labor rates, capacity utilization, and higher value orders • Increased Technici
Slide 11: Free Cash Flow
Full Year 2024 Free Cash Flow ADJ FCF ($M) & CONVERSION % $969M • Consistent, attractive cash conversion profile $750M • Improved cash conversion during 2024 105% • Remain focused on cycle times (e.g. billing, 94% time-to-auction, and service WIP) • Reinvestment ratio (CapEx : Depreciation) 1.4x 202
Slide 12: Capital Allocation
Full Year 2024 Capital Allocation CAPITAL ALLOCATION ($M) 2023 2024 • Continued strong cash conversion provides Capital Expenditures $410 $329 optionality • Capital Expenditures 20% lower than FY 2023 M&A 271 - • Non-vehicle debt reduced by $268M during 2024 (increase of $381M in 2023) Share Repurch
Slide 13: Early Thoughts on 2025
Early Thoughts on 2025 • Expect New vehicle unit growth with margins normalizing above historical levels • Used vehicle market stabilization with modest unit volume increases • Resilient CFS and continued AN Finance expansion • Continued After Sales growth, technician retention, and development • Ma
Slide 14: Appendix
Appendix This presentation contains certain non-GAAP financial measures as defined under SEC rules, which exclude certain items disclosed in the attached financial tables. As required by SEC rules, the Company provides reconciliations of these measures to the most directly comparable GAAP measures.
Slide 15: Global Financial Crisis to 2024
SELECT HISTORICAL DATA Global Financial Crisis to 2024 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 FY Avg. Light Vehicle SAAR (mm) 13.1 10.3 11.5 12.6 14.3 15.4 16.4 17.4 17.5 17.1 17.2 17.0 14.5 14.9 13.7 15.6 15.9 15.0 New Retail SAAR (mm) 10.6 8.6 9.2 10.3
Slide 16: Balance Sheet and Other Items
4Q 2024 Balance Sheet and Other Items ($ in millions) Balance Sheet and Other Highlights 12/31/23 12/31/24 Cash and cash equivalents 60.8 59.8 Inventory 3,033.4 3,360.0 Floorplan notes payable 3,382.4 3,709.7 Non-recourse debt (AN Finance funding) 258.4 826.0 Non-vehicle debt 4,030.3 3,762.1 Equity
Slide 17: Comparable Basis Reconciliations (Three Months)
NON-GAAP RECONCILIATIONS Comparable Basis Reconciliations(1) Three Months Ended December 31, 2023, and December 31, 2024 Income from Continuing Diluted Earnings Per Operating Income Operations Before Income Tax Provision(2) Effective Tax Rate Net Income Share(3) Income Taxes 2023 2024 2023 2024 2023
Slide 18: Comparable Basis Reconciliations (Twelve Months)
NON-GAAP RECONCILIATIONS Comparable Basis Reconciliations(1) Twelve Months Ended December 31, 2023, and December 31, 2024 Income from Continuing Diluted Earnings Per Operating Income Operations Before Income Tax Provision(2) Effective Tax Rate Net Income Share(3) Income Taxes 2023 2024 2023 2024 202
Slide 19: Free Cash Flow Reconciliation
Full Year 2024 Free Cash Flow Reconciliation ($ in millions) Free Cash Flow Reconciliation 2023 2024 Net cash provided by operating activities $724.0 $314.7 Net Proceeds from (payments of) 425.3 (113.5) Vehicle Floorplan – non-Trade Increase in Auto loans receivable, net 229.9 877.1 Adj. cash provid