Subscribe to Florida Trend

NAVIGATION

July 18, 2018

Press Release

AutoNation Reports Second Quarter 2017 Results

| 8/4/2017

FORT LAUDERDALE, Fla. -- AutoNation, Inc. (NYSE: AN), America's largest automotive retailer, today reported second quarter 2017 net income from continuing operations of $88 million, or $0.86 per share. Second quarter 2016 net income from continuing operations totaled $112 million, or $1.08 per share.

For the second quarter of 2017, AutoNation's combined retail vehicle unit sales were down 3%, or down 2% on a same store basis. Market conditions were very challenging in two of the Company's largest states, Texas and Florida, which represent approximately 45% of AutoNation's total retail vehicle unit sales. Same store retail vehicle unit sales in these states were down a combined 6%. According to JD Power, industry retail new vehicle unit sales in Texas and Florida were down 5%.

Mike Jackson, Chairman, CEO and President, said, "Our pre-owned margins declined due to implementation challenges with our centralized One Price strategy during the quarter. However, we've taken decisive action to resolve those issues by realigning our leadership and structure to fully realize the opportunity of our brand extension strategy."

Brand Extension Update

AutoNation continues to move forward with its comprehensive brand extension strategy. Since January 1, 2017, AutoNation has opened two auto auctions in Orlando, FL, and Houston, TX, and acquired three collision centers in Ft. Lauderdale, FL, Bellevue, WA, and Lewisville, TX. The Company currently owns and operates 72 AutoNation Collision Centers from coast to coast. AutoNation Precision Parts and AutoNation Auto Gear remain on track, with multiple parts categories expected to be available at our AutoNation USA stores, collision centers, and auctions by year-end.

Franchise Acquisitions and Add-Points

AutoNation today announced the acquisition of Alpine Jaguar in Ft. Lauderdale, FL, representing approximately $68 million in annual revenue. This is AutoNation's first Jaguar franchise in its South Florida market. AutoNation today also announced that it was awarded a Jaguar Land Rover add-point in Delray Beach, FL, with anticipated annual revenue of approximately $130 million, once fully operational. This add-point, together with the BMW add-point previously announced in October 2016, will complete our Premium Luxury automotive row in Delray Beach, FL, which also includes our Mercedes-Benz of Delray store. On a combined basis, once the add-points are fully operational, we expect that our Premium Luxury stores in Delray Beach, FL, will generate approximately $500 million in annual revenue.

Share Repurchase

During the second quarter of 2017, AutoNation repurchased 0.9 million shares of common stock for an aggregate purchase price of $34.9 million. AutoNation has approximately $264 million remaining Board authorization for share repurchase. As of July 31, 2017, AutoNation had approximately 100 million shares outstanding.

(More investor information here.)

Tags: Retail & Sales

Digital Access

DIRECT DIGITAL ACCESS
Add digital to your current subscription, purchase a single digital issue, or start a new subscription to Florida Trend.

TABLE OF CONTENTS
An overview of the features and articles in this month's issue of Florida Trend.

ACCESS THIS ISSUE »

Florida Business News

Florida Trend Video Pick

Umbrella Sky in Coral Gables
Umbrella Sky in Coral Gables

More than 720 bright umbrellas will sway gently over the newly transformed Giralda Plaza in Coral Gables through September 17, 2018.

Earlier Videos | Viewpoints@FloridaTrend

Ballot Box

Are you clear on the 13 proposed Constitutional Amendments for this fall's ballot?

  • No, need to read more
  • Understand some but not all
  • Yes, I know how I will vote
  • I don't vote

See Results

Ballot Box
Subscribe