Please visit www.autonation.com, investors.autonation.com, and www.x.com/autonation, where AutoNation discloses additional information about the Company, its business, and its results of operations. Forward-Looking Statements This news release 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 deemed to be, fo ...

Core Points - AutoNation has opened two new AutoNation USA stores in Denton and Houston, marking the seventh and eighth pre-owned vehicle retail locations in Texas, contributing to a total of 26 nationwide [1][2] - The new stores aim to enhance customer experience and solidify AutoNation's position as a leading automotive retailer, recognized as the highest-ranked automotive dealer on the Fortune 2025 World's Most Admired Companies list [3] - The Denton store spans 18,306 square feet and creates 35 new jobs, while the Gulf Freeway store in Houston covers 18,426 square feet and adds 36 jobs to the local economy [3][4] - AutoNation USA offers a wide selection of high-quality used vehicles and competitive pricing through its 1Price Pre-Owned experience and the We'll Buy Your Car program, which provides same-day cash offers [5] - The company has a philanthropic focus, recently honoring the Texas chapter of the American Cancer Society as part of its DRV PNK initiative, which has raised over $40 million for cancer-related causes [6][9]

Financial Performance - For the year ended December 31, 2024, net income was $692.2 million, with diluted earnings per share of $16.92, compared to net income of $1.0 billion and diluted earnings per share of $22.74 in 2023[172]. - Total revenue for 2024 was $26,765.4 million, a decrease of $183.5 million or 0.7% compared to 2023[221]. - Gross profit for 2024 was $4,785.4 million, a decline of 6.73% from $5,131.5 million in 2023[330]. - Operating income fell by $346.4 million or 21.0% to $1,305.5 million in 2024[192]. - Net income from continuing operations for 2024 was $692.2 million, a decrease of 32.2% compared to $1,020.2 million in 2023[330]. Revenue Breakdown - New vehicle sales accounted for 49% of total revenue and 16% of total gross profit, while used vehicle sales accounted for 29% of total revenue and 9% of total gross profit[168]. - New vehicle revenue increased to $13,048.2 million in 2024, up 2.2% from $12,767.4 million in 2023[330]. - Used vehicle revenue decreased to $7,719.9 million in 2024, down 5.8% from $8,198.5 million in 2023[330]. - Parts and service revenue increased by $110.5 million or 2.5% to $4,503.5 million, contributing to a gross profit margin of 46.1%[196][197]. Sales Performance - Retail vehicle unit sales for new vehicles increased by 10,169 units or 4.2% to 254,715 units in 2024, while used vehicle sales decreased by 8,111 units or 3.0% to 265,908 units[192]. - Retail new vehicle unit sales increased to 254,715 in 2024, up 10,169 units or 4.2% from 2023[223]. - Retail used vehicle unit sales decreased to 265,908 in 2024, down 8,111 units or 3.0% from 2023[223]. Inventory and Supply - New vehicle inventory units increased to approximately 42,600 as of December 31, 2024, compared to 35,300 in 2023[178]. - Days supply for new vehicles increased to 39 days in 2024 from 36 days in 2023, while used vehicle supply decreased to 37 days from 39 days[193]. - The net new vehicle inventory carrying expense increased to $(73.8) million in 2024, compared to $(6.3) million in 2023, primarily due to higher floorplan interest expense[204]. Expenses and Costs - Total gross profit decreased by 7% in 2024, driven by a 27% decrease in new vehicle gross profit and a 14% decrease in used vehicle gross profit[173]. - Selling, general, and administrative expenses as a percentage of revenue remained stable at 12.2% in 2024 compared to 12.1% in 2023[193]. - SG&A expenses totaled $3,263.9 million in 2024, an increase of $10.7 million (0.3%) from 2023[242]. Segment Performance - Segment income for Domestic decreased to $254.9 million in 2024, down $160.5 million or 38.6% from 2023, impacted by lower gross profits across new and used vehicles[225]. - Segment income for Import fell to $476.6 million in 2024, a decrease of $158.4 million or 24.9% compared to 2023, primarily due to reduced new vehicle gross profit margins[229]. - Premium Luxury total revenue decreased by $126.5 million (1.2%) in 2024 compared to 2023, primarily due to declines in new and used vehicle revenue[231]. Cash Flow and Debt - Net cash provided by operating activities decreased to $314.7 million in 2024 from $724.0 million in 2023, a decline of 56.5%[274]. - As of December 31, 2024, total long-term debt, net of current maturities, was $2.6 billion, down from $3.1 billion in 2023[266]. - The company reported a net cash used in financing activities of $300.6 million in 2024, compared to $172.5 million in 2023, indicating a significant increase in cash outflow[337]. Strategic Initiatives - The company is investing significantly in strategic initiatives, including the expansion of its AutoNation Finance business and AutoNation USA used vehicle stores[56]. - The company continues to grow its AutoNation Finance business, increasing finance penetration rates associated with vehicles sold through its stores[282]. Cybersecurity and Operational Risks - The company relies on information technology and is exposed to cybersecurity risks that could disrupt operations and impact financial results[56]. - The CDK outage negatively impacted same store unit volume and productivity in vehicle sales and service processes in the latter half of June 2024[207]. Market Conditions - The automotive retail industry remains sensitive to economic conditions, impacting vehicle sales and profit margins[293]. - The U.S. industry new vehicle unit sales increased to 16.0 million in 2024 from 15.6 million in 2023, indicating a recovery in market conditions[169].

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $7.2 billion, an increase of 7% year-over-year, and 8% on a same-store basis [28] - Gross profit was $1.24 billion, up 5% sequentially and 3% year-over-year on a same-store basis [29] - Adjusted net income was $199 million, compared to $216 million a year ago, with adjusted EPS at $4.97, five cents below Q4 2023 [33] Business Line Data and Key Metrics Changes - New vehicle sales saw a 12% same-store unit volume growth, with domestic segment sales up 17% and premium luxury segment sales up 12% [21][22] - Used vehicle gross profit increased by 14% year-over-year, driven by improved inventory management [22] - AutoNation Finance originated $1.1 billion in loans during 2024, with a portfolio now exceeding $1.1 billion and a delinquency rate of less than 3% [12][48] Market Data and Key Metrics Changes - Hybrid vehicle sales increased approximately 50% year-over-year, representing nearly 20% of unit sales, while battery electric vehicle sales rose over 25% [36] - New vehicle inventory at year-end was below 43,000 units, down from 46,000 units at the end of Q3 2024 [38] - After-sales gross profit increased by more than 5% year-over-year, achieving record gross profit for both Q4 and the full year [24][51] Company Strategy and Development Direction - The company plans to continue focusing on after-sales growth, technician recruitment, and retention, as well as enhancing customer financial services [65] - Capital allocation will prioritize high-return opportunities, including share repurchases and potential M&A activities [145][150] - The company divested eight stores that did not fit its model, allowing for capital redeployment into share repurchases [17][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about pent-up demand for new vehicles and anticipated moderate unit growth in early 2025, with expectations for stabilization in unit profitability [62][63] - The company expects continued resilience in customer financial services volumes and profitability, alongside a stable used car market [64] - Management acknowledged uncertainties in the economic environment and geopolitical factors but emphasized the company's ability to deliver strong results across various conditions [61][66] Other Important Information - The company repurchased approximately $100 million of shares during Q4 2024, bringing total share repurchases for the year to $460 million, representing a 7% reduction in shares outstanding [26][59] - AutoNation was recognized by Fortune magazine as one of the world's most admired companies for the eighth consecutive year [18] Q&A Session Summary Question: Impact of post-election consumer sentiment on sales - Management noted improved consumer sentiment post-election and expected this trend to continue into early 2025, with a strong exit rate in new vehicle sales [72][75] Question: OEMs' approach to EV inventory - Management indicated that OEMs are adjusting their strategies regarding EVs and hybrids, balancing inventory levels while recognizing the growing demand for hybrids [78][81] Question: Funding needs for AutoNation Finance - Management discussed the expected increase in nonrecourse financing for AutoNation Finance, projecting a growth in funding levels as the portfolio matures [94][97] Question: After-sales growth expectations - Management highlighted the focus on technician recruitment and the potential for mid-single-digit growth in after-sales, emphasizing the importance of customer retention [100][106] Question: SG&A improvements and future expectations - Management indicated that SG&A as a percentage of gross profit improved in Q4 2024, with expectations for modest improvements in 2025 as the company continues to drive growth [114][118] Question: Used vehicle margin stabilization - Management acknowledged that while used vehicle margins have moderated, they expect opportunities for growth in dollar terms rather than percentage terms due to market dynamics [132][134] Question: Collision business recovery - Management anticipated a seasonal recovery in the collision business as they move into spring, despite challenges faced in the previous year [138][140] Question: Capital allocation strategy - Management reiterated that capital allocation decisions will focus on maximizing shareholder returns, balancing between share repurchases and potential acquisitions [144][150]

Group 1 - AutoNation, Inc. (NYSE: AN) has shown strong performance over the past year, with a stock price increase of 24% and recently reaching a 52-week high [1] - The stock experienced a slight decline after the company reported solid Q4 results [1] Group 2 - The article emphasizes the importance of macro views and stock-specific turnaround stories in making investment decisions [1]

Core Insights - AutoNation reported $7.21 billion in revenue for Q4 2024, a year-over-year increase of 6.6% [1] - The EPS for the quarter was $4.97, slightly down from $5.02 a year ago, but exceeded the consensus estimate of $4.26 by 16.67% [1] - The revenue surpassed the Zacks Consensus Estimate of $6.64 billion by 8.56% [1] Financial Performance Metrics - Retail vehicle unit sales totaled 136,263, exceeding the average estimate of 128,985 [4] - Revenue per new vehicle retailed was $52,849, higher than the estimated $50,903.06 [4] - Revenue per used vehicle retailed was $27,119, compared to the average estimate of $25,965.63 [4] - Gross profit per vehicle retailed in finance and insurance was $2,686, slightly above the average estimate of $2,678.80 [4] - Retail vehicle unit sales for used vehicles were 64,829, slightly above the average estimate of 64,696 [4] Revenue Breakdown - Revenue from new vehicles was $3.78 billion, exceeding the average estimate of $3.29 billion, with a year-over-year change of 12.1% [4] - Revenue from used vehicles was $1.91 billion, surpassing the average estimate of $1.78 billion, with a year-over-year change of 0.3% [4] - Parts and service revenue was $1.15 billion, below the average estimate of $1.21 billion, with a year-over-year change of 1.1% [4] - Finance and insurance net revenue was $366 million, exceeding the average estimate of $345.62 million, with a year-over-year change of 5.4% [4] - Retail used vehicle revenue was $1.76 billion, above the estimated $1.62 billion, representing a year-over-year decline of 1.3% [4] - Wholesale used vehicle revenue was $153.20 million, surpassing the average estimate of $124.12 million, with a year-over-year change of 22.9% [4] Stock Performance - AutoNation shares returned +9.8% over the past month, outperforming the Zacks S&P 500 composite's +4.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Core Insights - AutoNation reported quarterly earnings of $4.97 per share, exceeding the Zacks Consensus Estimate of $4.26 per share, but down from $5.02 per share a year ago, representing an earnings surprise of 16.67% [1] - The company generated revenues of $7.21 billion for the quarter, surpassing the Zacks Consensus Estimate by 8.56% and increasing from $6.77 billion year-over-year [2] - AutoNation's stock has increased by approximately 13.4% since the beginning of the year, outperforming the S&P 500's gain of 3.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $4.30, with expected revenues of $6.35 billion, and for the current fiscal year, the EPS estimate is $18.33 on revenues of $26.55 billion [7] - The estimate revisions trend for AutoNation is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Automotive - Retail and Whole Sales industry is currently ranked in the top 28% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Penske Automotive, is expected to report quarterly earnings of $3.37 per share, reflecting a year-over-year decline of 2.3%, with revenues anticipated to be $7.56 billion, up 4% from the previous year [9][10]

Fourth Quarter 2024 Earnings Release February 11, 2025 1 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 deemed to be, forward-looking statements. Words such as "anticipates," "expects," "estimates," "intends," "goals," "targets," "projects," "plans," "believes," ...

Financial Performance - Fourth quarter 2024 revenue reached $7.2 billion, an 8% increase year-over-year on a same-store basis[2] - EPS for Q4 2024 was $4.64, with adjusted EPS at $4.97, reflecting a decrease of 8% from the previous year[5] - Full year 2024 revenue totaled $26.8 billion, a slight decrease of 1% compared to 2023[10] - The company reported a net income of $692.2 million for the full year 2024, a 32% decrease from the previous year[10] - Total revenue for Q4 2024 reached $7,213.2 million, a 6.6% increase from $6,767.4 million in Q4 2023[27] - Net income for the twelve months ended December 31, 2024, was $692.2 million, down 32.2% from $1,021.1 million in 2023[27] - Diluted earnings per share for continuing operations decreased to $16.92 in 2024 from $22.72 in 2023, reflecting a 25.5% decline[27] - Adjusted net income for 2024 was $714.0 million, down from $1,032.8 million in 2023, representing a decrease of about 31%[41] - The adjusted diluted earnings per share for 2024 was $17.46, down from $23.00 in 2023[39] Vehicle Sales and Revenue - New vehicle same-store retail unit sales grew by 12% in Q4 2024, contributing to a 13% increase in new vehicle revenue to $3.8 billion[9] - New vehicle revenue increased to $3,775.2 million in Q4 2024, up 12.1% from $3,366.9 million in Q4 2023[27] - Retail vehicle unit sales increased by 6,364 units, totaling 136,263 units sold in Q4 2024, a growth of 4.9%[29] - Retail new vehicle unit sales increased by 10.3% to 71,434 units in Q4 2024, compared to 64,748 units in Q4 2023[32] - Retail used vehicle revenue decreased by $23.0 million, representing a decline of 1.3% compared to the previous year[29] - The company reported a decrease in retail used vehicle unit sales by 0.5% to 64,829 units in Q4 2024 compared to 65,151 units in Q4 2023[32] - Used vehicle retail unit sales slightly decreased by 0.8% to 63,330 units from 63,831 units year-over-year[43] Profitability and Expenses - Same-store gross profit for the full year 2024 decreased by 7% to $4.7 billion, with new vehicle gross profit down by 27%[14] - Gross profit for the twelve months ended December 31, 2024, was $4,785.4 million, a decrease of 6.7% compared to $5,131.5 million in 2023[27] - Total gross profit increased to $1,241.6 million, a rise of $26.4 million or 2.2% from Q4 2023[29] - New vehicle gross profit declined by 9.6% to $212.2 million from $234.7 million year-over-year[43] - Selling, general, and administrative expenses increased to $3,263.9 million in 2024, slightly up from $3,253.2 million in 2023[27] - SG&A expenses for Q4 2024 were $833.7 million, representing 67.1% of gross profit, compared to $808.3 million and 66.5% in Q4 2023[37] - SG&A expenses as a percentage of gross profit increased to 68.2% in 2024 from 63.4% in 2023[39] Financing and Liquidity - AutoNation Finance originated $1.1 billion in loans during 2024, enhancing its loan portfolio[6] - As of December 31, 2024, AutoNation had $1.3 billion in liquidity, with a leverage ratio of 2.4X[18] - The leverage ratio stood at 2.45x, well below the covenant limit of 3.75x, while the interest coverage ratio was 4.24x, exceeding the covenant requirement of 3.00x[35] - Non-recourse debt increased significantly to $826.0 million in 2024 from $258.4 million in 2023[35] - The company experienced an increase in auto loans receivable, net, amounting to $877.1 million in 2024, compared to $229.9 million in 2023[41] Future Outlook and Strategic Initiatives - The company anticipates continued focus on strategic acquisitions and digital capabilities to enhance market share and profitability[25] - Future performance expectations include navigating economic uncertainties such as inflation and consumer demand fluctuations[25] - The company plans to maintain expense controls and improve gross profit margins amid competitive pressures in the automotive retail industry[25]

Q4 2024 revenue up 8% on a same store basis; EPS $4.64 and adjusted EPS $4.97 New Vehicle same-store unit sales growth of 12% in Q4, with sequential unit profitability growth Used Vehicle same-store gross profit growth of 14% in Q4 After-Sales and CFS same-store gross profit growth of 5% and 6%, respectively in Q4 AN Finance originated $1.1 billion of loans during 2024 Share repurchases of $460 million in 2024 representing a 7% share reduction Continued strong balance sheet, leverage reduced sequentially t ...