AutoNation Reports Second Quarter 2017 Results
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.
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.)