AutoNation(AN) - 2024 Q4 - Annual Results

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]