FORT LAUDERDALE, Fla., Aug. 1, 2018 /PRNewswire/ — AutoNation, Inc. (NYSE: AN), America’s largest automotive retailer, today reported second quarter 2018 net income from continuing operations of $97 million, or $1.07 per share, up 11% compared to second quarter 2017 net income from continuing operations of $88 million, or $0.86 per share. Second quarter 2018 net income from continuing operations included a non-cash franchise rights impairment charge of $6 million after-tax, or $0.07 per share.
Second quarter 2018 revenue totaled $5.4 billion compared to $5.3 billion in the year-ago period. Same-store second quarter 2018 revenue totaled $5.3 billion compared to $5.1 billion in the year-ago period, an increase of 4%. Same-store second quarter 2018 gross profit of $839 million increased by 4% compared to $806 million in the year-ago period, driven by increases in used vehicle gross profit of 22%, Customer Financial Services gross profit of 10%, and Customer Care gross profit of 4%. Same-store Customer Financial Services gross profit per vehicle retailed was an all-time record $1,789.
AutoNation and Waymo have expanded their partnership beyond long-term maintenance and repairs of Waymo’s self-driving fleet. AutoNation has the exclusive ability to offer its customers in Phoenix, AZ, the use of a Waymo to move around the city while their personal vehicles are being serviced at AutoNation dealerships. This offers AutoNation customers a new and unique opportunity to experience Waymo technology first-hand.
AutoNation today announced the acquisition of Shelly BMW in the Southern California market. The annual revenue for the store is approximately $140 million, with retail sales of approximately 2,600 new and used vehicles. AutoNation now owns and operates 17 BMW stores from coast to coast. The Company also announced that it has signed an agreement to acquire Trade Secret Auto Care, a collision center in the Dallas, Texas market. This will be the Company’s 81st collision and repair center nationwide. AutoNation continues to expand its collision center footprint to reach more customers and leverage relationships with insurance carriers.
During the second quarter of 2018, AutoNation repurchased 1.6 million shares of common stock for an aggregate purchase price of $73 million. As of July 30, 2018, AutoNation has approximately $264 million remaining Board authorization for share repurchase and approximately 90 million shares outstanding.
Segment results(1) for the second quarter 2018 were as follows:
Second Quarter 2018 Segment Results
- Domestic – Domestic segment income(2) was $67 million compared to year-ago segment income of $60 million, an increase of 12%.
- Import – Import segment income(2) was $78 million compared to year-ago segment income of $75 million, an increase of 4%.
- Premium Luxury – Premium Luxury segment income(2) was $85 million compared to year-ago segment income of $84 million, an increase of 1%.
For the six-month period ended June 30, 2018, the Company reported net income from continuing operations of $191 million, or $2.08 per share, compared to net income from continuing operations of $186 million, or $1.83 per share, for the same period in the prior year. The Company’s revenue for the six-month period ended June 30, 2018, totaled $10.7 billion, an increase of 2% compared to $10.4 billion for the same period in the prior year.
The second quarter conference call may be accessed by telephone at (888) 769-8515 (password: AutoNation) at 11:00 a.m. Eastern Time today or on AutoNation’s investor relations website at investors.autonation.com.
The webcast will also be available on AutoNation’s website under “Events & Presentations” following the call. A playback of the conference call will be available after 1:00 p.m. Eastern Time on August 1, 2018, through August 22, 2018, by calling 866-391-4970 (passcode 2910).
AutoNation has three reportable segments: Domestic, Import, and Premium Luxury. The Domestic segment is comprised of stores that sell vehicles manufactured by General Motors, Ford, and FCA US; the Import segment is comprised of stores that sell vehicles manufactured primarily by Toyota, Honda, Nissan, and Hyundai; and the Premium Luxury segment is comprised of stores that sell vehicles manufactured primarily by Mercedes-Benz, BMW, Lexus, and Audi.
Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense.
About AutoNation, Inc.
AutoNation, America’s largest automotive retailer, is transforming the automotive industry through its bold leadership, innovation, and comprehensive brand extensions. As of June 30, 2018, AutoNation owned and operated over 325 locations from coast to coast. AutoNation has sold over 11 million vehicles, the first automotive retailer to reach this milestone. AutoNation’s success is driven by a commitment to delivering a peerless experience through customer-focused sales and service processes. Through its Drive Pink initiative, AutoNation is committed to drive out cancer, create awareness and support critical research. AutoNation continues to be a proud supporter of the Breast Cancer Research Foundation and other cancer-related charities.
Please visit investors.autonation.com, www.autonation.com, www.autonationdrive.com, www.twitter.com/autonation, www.twitter.com/CEOMikeJackson, www.facebook.com/autonation, and www.facebook.com/CEOMikeJackson, where AutoNation discloses additional information about the Company, its business, and its results of operations.