AutoNation(AN)2024-10-25 21:25Financial Performance - Net income for the three months ended September 30, 2024, was 4.61, compared to 5.54 in the same period of 2023[128]. - Total revenue for the three months ended September 30, 2024, was 6,892.7 million in the same period of 2023[143]. - Total gross profit for the three months ended September 30, 2024, was 1,294.6 million in the same period of 2023[143]. - Operating income for the three months ended September 30, 2024, was 419.5 million in 2023[143]. - Total revenue for the first nine months of 2024 was 6,169.4 million in the same period of 2023[166]. Vehicle Sales and Inventory - For the nine months ended September 30, 2024, new vehicle sales accounted for 47% of total revenue and 16% of total gross profit[124]. - The company experienced a 2% decrease in U.S. industry retail new vehicle unit sales in Q3 2024 compared to Q3 2023[125]. - Retail vehicle unit sales for new vehicles increased by 2.0% to 62,890 units, while used vehicle sales decreased by 9.8% to 64,071 units[149]. - The new vehicle inventory at September 30, 2024, was 46,090 units, up from 27,544 units in 2023[131]. - Inventory days supply for new vehicles increased to 52 days in September 2024 from 31 days in September 2023[145]. Revenue Breakdown - New vehicle revenue decreased by 3,171.2 million for the three months ended September 30, 2024, compared to 283.7 million (14.0%) to 2,025.1 million in 2023[143]. - Parts and service operations contributed 47% of total gross profit despite comprising only 18% of total revenue[124]. - Parts and service revenue accounted for 17.8% of total revenue for the three months ended September 30, 2024, compared to 16.8% in 2023[146]. - The finance and insurance segment reported a net revenue of 364.8 million in the previous year[149]. Profit Margins - New vehicle gross profit margin decreased to 5.6% for the three months ended September 30, 2024, compared to 7.9% in 2023[146]. - Used vehicle gross profit margin for retail was 6.1% for the three months ended September 30, 2024, down from 6.3% in 2023[146]. - The gross profit margin for new vehicles decreased to 15.1% from 19.6% in the prior year, indicating a decline in profitability[151]. - Total variable operations gross profit per vehicle retailed decreased by 13.9% to 5,540 in 2023[143]. Expenses and Financial Position - SG&A expenses decreased to 819.3 million in 2023, a 1.0% decrease[208]. - Floorplan interest expense increased to 38.3 million in 2023, a rise of 57.9%[213]. - The effective income tax rate was 24.9% for the three months ended September 30, 2024, compared to 25.6% for the same period in 2023[218]. - The company reported a total of 3,612 million at December 31, 2023[234]. - As of September 30, 2024, the company had cash and cash equivalents of 60.8 million at December 31, 2023[225]. Strategic Initiatives and Market Conditions - The company is investing significantly in strategic initiatives, including the planned expansion of AutoNation USA stores and AutoNation Finance business[249]. - The automotive retail industry is sensitive to changing economic conditions, including unemployment levels and consumer confidence, which could impact vehicle sales levels[248]. - The CDK outage negatively impacted vehicle sales, inventory, and customer relationship management functions, affecting both domestic and import revenues[195]. - The CDK cyber incident negatively impacted earnings per share by approximately $0.21 for the quarter ended September 30, 2024[130]. - The company did not acquire any stores during the nine months ended September 30, 2024, but divested seven Domestic stores and one Import store during the same period[231].