Delaware | 1-13107 | 73-1105145 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
99.1 | Press Release of AutoNation, Inc. dated January 28, 2016, announcing its results of operations for the fiscal quarter and year ended December 31, 2015. |
AUTONATION, INC. | ||||
Date: | January 28, 2016 | By: | /s/ Jonathan P. Ferrando | |
Jonathan P. Ferrando | ||||
Executive Vice President - General Counsel, Corporate Development and Human Resources |
Contact: Marc Cannon (954) 769-3146 cannonm@autonation.com Investor contacts: Andrew Wamser (954) 769-7023 wamsera@autonation.com Robert Quartaro (954) 769-7342 quartaror@autonation.com |
• | Total revenue of $5.3 billion was up 6% compared to the year-ago period, increasing across all major business sectors |
• | Adjusted EPS from continuing operations was $0.96, down 6% compared to fourth quarter 2014 EPS from continuing operations of $1.02. On a GAAP basis, fourth quarter 2015 EPS from continuing operations was $0.87. |
• | Adjusted EPS from continuing operations was $3.98, up 14% compared to full year 2014 adjusted EPS from continuing operations of $3.49. On a GAAP basis, full year EPS from continuing operations was $3.90 in 2015 compared to $3.53 in 2014. |
• | Total revenue of $20.9 billion was up 9% compared to the year-ago period, increasing across all major business sectors; operating income of $873 million, an increase of 6% compared to 2014 |
• | During 2015, AutoNation closed on the acquisition of 22 stores, including 51 franchises, representing approximately $1 billion in annual revenue |
• | Domestic – Domestic segment income(2) was $78 million compared to year-ago segment income of $74 million, an increase of 6%. |
• | Import – Import segment income(2) was $71 million compared to year-ago segment income of $71 million. |
• | Premium Luxury – Premium Luxury segment income(2) was $102 million compared to year-ago segment income of $113 million, a decrease of 9%. |
• | Domestic – Domestic segment income(2) was $337 million compared to year-ago segment income of $285 million, an increase of 18%. |
• | Import – Import segment income(2) was $311 million compared to year-ago segment income of $291 million, an increase of 7%. |
• | Premium Luxury – Premium Luxury segment income(2) was $376 million compared to year-ago segment income of $366 million, an increase of 3%. |
(1) | AutoNation has three operating segments: Domestic, Import, and Premium Luxury. The Domestic segment is comprised of stores that sell vehicles manufactured by General Motors, Ford, and FCA US (formerly Chrysler); 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. |
(2) | Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense. |
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenue: | |||||||||||||||
New vehicle | $ | 3,144.0 | $ | 2,983.1 | $ | 11,995.0 | $ | 10,972.2 | |||||||
Used vehicle | 1,153.8 | 1,105.2 | 4,768.7 | 4,385.7 | |||||||||||
Parts and service | 778.3 | 729.3 | 3,082.8 | 2,822.5 | |||||||||||
Finance and insurance, net | 216.3 | 196.5 | 868.7 | 750.8 | |||||||||||
Other | 47.4 | 33.7 | 146.8 | 177.6 | |||||||||||
Total revenue | 5,339.8 | 5,047.8 | 20,862.0 | 19,108.8 | |||||||||||
Cost of sales: | |||||||||||||||
New vehicle | 2,969.3 | 2,797.6 | 11,321.9 | 10,322.1 | |||||||||||
Used vehicle | 1,078.1 | 1,016.6 | 4,415.0 | 4,025.1 | |||||||||||
Parts and service | 439.7 | 423.9 | 1,744.8 | 1,625.9 | |||||||||||
Other | 40.5 | 26.2 | 118.8 | 147.0 | |||||||||||
Total cost of sales | 4,527.6 | 4,264.3 | 17,600.5 | 16,120.1 | |||||||||||
Gross profit | 812.2 | 783.5 | 3,261.5 | 2,988.7 | |||||||||||
Selling, general, and administrative expenses | 568.5 | 532.0 | 2,263.5 | 2,079.6 | |||||||||||
Depreciation and amortization | 33.7 | 27.9 | 127.4 | 106.9 | |||||||||||
Franchise rights impairment | 15.4 | — | 15.4 | — | |||||||||||
Other income, net | (5.8 | ) | (2.9 | ) | (17.9 | ) | (18.6 | ) | |||||||
Operating income | 200.4 | 226.5 | 873.1 | 820.8 | |||||||||||
Non-operating income (expense) items: | |||||||||||||||
Floorplan interest expense | (16.2 | ) | (13.7 | ) | (58.3 | ) | (53.3 | ) | |||||||
Other interest expense | (26.5 | ) | (22.1 | ) | (90.9 | ) | (86.7 | ) | |||||||
Loss on debt extinguishment | — | (1.6 | ) | — | (1.6 | ) | |||||||||
Interest income | — | — | 0.1 | 0.2 | |||||||||||
Other income (loss), net | 1.4 | (0.6 | ) | (1.3 | ) | 2.9 | |||||||||
Income from continuing operations before income taxes | 159.1 | 188.5 | 722.7 | 682.3 | |||||||||||
Income tax provision | 61.3 | 71.6 | 279.0 | 262.5 | |||||||||||
Net income from continuing operations | 97.8 | 116.9 | 443.7 | 419.8 | |||||||||||
Loss from discontinued operations, net of income taxes | (0.3 | ) | (0.2 | ) | (1.1 | ) | (1.1 | ) | |||||||
Net income | $ | 97.5 | $ | 116.7 | $ | 442.6 | $ | 418.7 | |||||||
Diluted earnings (loss) per share*: | |||||||||||||||
Continuing operations | $ | 0.87 | $ | 1.02 | $ | 3.90 | $ | 3.53 | |||||||
Discontinued operations | $ | — | $ | — | $ | (0.01 | ) | $ | (0.01 | ) | |||||
Net income | $ | 0.87 | $ | 1.02 | $ | 3.89 | $ | 3.52 | |||||||
Weighted average common shares outstanding | 112.0 | 114.9 | 113.9 | 118.9 | |||||||||||
Common shares outstanding, net of treasury stock, at period end | 110.8 | 113.3 | 110.8 | 113.3 |
* | Earnings per share amounts are calculated discretely and therefore may not add up to the total due to rounding. |
Operating Highlights | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||||||||
2015 | 2014 | $ Variance | % Variance | 2015 | 2014 | $ Variance | % Variance | |||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
New vehicle | $ | 3,144.0 | $ | 2,983.1 | $ | 160.9 | 5.4 | $ | 11,995.0 | $ | 10,972.2 | $ | 1,022.8 | 9.3 | ||||||||||||||||
Retail used vehicle | 1,064.0 | 1,007.8 | 56.2 | 5.6 | 4,370.3 | 3,988.9 | 381.4 | 9.6 | ||||||||||||||||||||||
Wholesale | 89.8 | 97.4 | (7.6 | ) | (7.8 | ) | 398.4 | 396.8 | 1.6 | 0.4 | ||||||||||||||||||||
Used vehicle | 1,153.8 | 1,105.2 | 48.6 | 4.4 | 4,768.7 | 4,385.7 | 383.0 | 8.7 | ||||||||||||||||||||||
Finance and insurance, net | 216.3 | 196.5 | 19.8 | 10.1 | 868.7 | 750.8 | 117.9 | 15.7 | ||||||||||||||||||||||
Total variable operations | 4,514.1 | 4,284.8 | 229.3 | 5.4 | 17,632.4 | 16,108.7 | 1,523.7 | 9.5 | ||||||||||||||||||||||
Parts and service | 778.3 | 729.3 | 49.0 | 6.7 | 3,082.8 | 2,822.5 | 260.3 | 9.2 | ||||||||||||||||||||||
Other | 47.4 | 33.7 | 13.7 | 146.8 | 177.6 | (30.8 | ) | |||||||||||||||||||||||
Total revenue | $ | 5,339.8 | $ | 5,047.8 | $ | 292.0 | 5.8 | $ | 20,862.0 | $ | 19,108.8 | $ | 1,753.2 | 9.2 | ||||||||||||||||
Gross profit: | ||||||||||||||||||||||||||||||
New vehicle | $ | 174.7 | $ | 185.5 | $ | (10.8 | ) | (5.8 | ) | $ | 673.1 | $ | 650.1 | $ | 23.0 | 3.5 | ||||||||||||||
Retail used vehicle | 77.7 | 89.9 | (12.2 | ) | (13.6 | ) | 358.4 | 363.2 | (4.8 | ) | (1.3 | ) | ||||||||||||||||||
Wholesale | (2.0 | ) | (1.3 | ) | (0.7 | ) | (4.7 | ) | (2.6 | ) | (2.1 | ) | ||||||||||||||||||
Used vehicle | 75.7 | 88.6 | (12.9 | ) | (14.6 | ) | 353.7 | 360.6 | (6.9 | ) | (1.9 | ) | ||||||||||||||||||
Finance and insurance | 216.3 | 196.5 | 19.8 | 10.1 | 868.7 | 750.8 | 117.9 | 15.7 | ||||||||||||||||||||||
Total variable operations | 466.7 | 470.6 | (3.9 | ) | (0.8 | ) | 1,895.5 | 1,761.5 | 134.0 | 7.6 | ||||||||||||||||||||
Parts and service | 338.6 | 305.4 | 33.2 | 10.9 | 1,338.0 | 1,196.6 | 141.4 | 11.8 | ||||||||||||||||||||||
Other | 6.9 | 7.5 | (0.6 | ) | 28.0 | 30.6 | (2.6 | ) | ||||||||||||||||||||||
Total gross profit | 812.2 | 783.5 | 28.7 | 3.7 | 3,261.5 | 2,988.7 | 272.8 | 9.1 | ||||||||||||||||||||||
Selling, general, and administrative expenses | 568.5 | 532.0 | (36.5 | ) | (6.9 | ) | 2,263.5 | 2,079.6 | (183.9 | ) | (8.8 | ) | ||||||||||||||||||
Depreciation and amortization | 33.7 | 27.9 | (5.8 | ) | 127.4 | 106.9 | (20.5 | ) | ||||||||||||||||||||||
Franchise rights impairment | 15.4 | — | (15.4 | ) | 15.4 | — | (15.4 | ) | ||||||||||||||||||||||
Other income, net | (5.8 | ) | (2.9 | ) | 2.9 | (17.9 | ) | (18.6 | ) | (0.7 | ) | |||||||||||||||||||
Operating income | 200.4 | 226.5 | (26.1 | ) | (11.5 | ) | 873.1 | 820.8 | 52.3 | 6.4 | ||||||||||||||||||||
Non-operating income (expense) items: | ||||||||||||||||||||||||||||||
Floorplan interest expense | (16.2 | ) | (13.7 | ) | (2.5 | ) | (58.3 | ) | (53.3 | ) | (5.0 | ) | ||||||||||||||||||
Other interest expense | (26.5 | ) | (22.1 | ) | (4.4 | ) | (90.9 | ) | (86.7 | ) | (4.2 | ) | ||||||||||||||||||
Loss on debt extinguishment | — | (1.6 | ) | 1.6 | — | (1.6 | ) | 1.6 | ||||||||||||||||||||||
Interest income | — | — | — | 0.1 | 0.2 | (0.1 | ) | |||||||||||||||||||||||
Other income (loss), net | 1.4 | (0.6 | ) | 2.0 | (1.3 | ) | 2.9 | (4.2 | ) | |||||||||||||||||||||
Income from continuing operations before income taxes | $ | 159.1 | $ | 188.5 | $ | (29.4 | ) | (15.6 | ) | $ | 722.7 | $ | 682.3 | $ | 40.4 | 5.9 | ||||||||||||||
Retail vehicle unit sales: | ||||||||||||||||||||||||||||||
New | 85,740 | 82,549 | 3,191 | 3.9 | 339,080 | 318,008 | 21,072 | 6.6 | ||||||||||||||||||||||
Used | 53,920 | 53,534 | 386 | 0.7 | 227,290 | 214,910 | 12,380 | 5.8 | ||||||||||||||||||||||
139,660 | 136,083 | 3,577 | 2.6 | 566,370 | 532,918 | 33,452 | 6.3 | |||||||||||||||||||||||
Revenue per vehicle retailed: | ||||||||||||||||||||||||||||||
New | $ | 36,669 | $ | 36,137 | $ | 532 | 1.5 | $ | 35,375 | $ | 34,503 | $ | 872 | 2.5 | ||||||||||||||||
Used | $ | 19,733 | $ | 18,825 | $ | 908 | 4.8 | $ | 19,228 | $ | 18,561 | $ | 667 | 3.6 | ||||||||||||||||
Gross profit per vehicle retailed: | ||||||||||||||||||||||||||||||
New | $ | 2,038 | $ | 2,247 | $ | (209 | ) | (9.3 | ) | $ | 1,985 | $ | 2,044 | $ | (59 | ) | (2.9 | ) | ||||||||||||
Used | $ | 1,441 | $ | 1,679 | $ | (238 | ) | (14.2 | ) | $ | 1,577 | $ | 1,690 | $ | (113 | ) | (6.7 | ) | ||||||||||||
Finance and insurance | $ | 1,549 | $ | 1,444 | $ | 105 | 7.3 | $ | 1,534 | $ | 1,409 | $ | 125 | 8.9 | ||||||||||||||||
Total variable operations(1) | $ | 3,356 | $ | 3,468 | $ | (112 | ) | (3.2 | ) | $ | 3,355 | $ | 3,310 | $ | 45 | 1.4 | ||||||||||||||
(1) Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle, retail used vehicle, and finance and insurance gross profit by total retail vehicle unit sales. |
Operating Percentages | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||
2015 (%) | 2014 (%) | 2015 (%) | 2014 (%) | |||||
Revenue mix percentages: | ||||||||
New vehicle | 58.9 | 59.1 | 57.5 | 57.4 | ||||
Used vehicle | 21.6 | 21.9 | 22.9 | 23.0 | ||||
Parts and service | 14.6 | 14.4 | 14.8 | 14.8 | ||||
Finance and insurance, net | 4.1 | 3.9 | 4.2 | 3.9 | ||||
Other | 0.8 | 0.7 | 0.6 | 0.9 | ||||
100.0 | 100.0 | 100.0 | 100.0 | |||||
Gross profit mix percentages: | ||||||||
New vehicle | 21.5 | 23.7 | 20.6 | 21.8 | ||||
Used vehicle | 9.3 | 11.3 | 10.8 | 12.1 | ||||
Parts and service | 41.7 | 39.0 | 41.0 | 40.0 | ||||
Finance and insurance | 26.6 | 25.1 | 26.6 | 25.1 | ||||
Other | 0.9 | 0.9 | 1.0 | 1.0 | ||||
100.0 | 100.0 | 100.0 | 100.0 | |||||
Operating items as a percentage of revenue: | ||||||||
Gross profit: | ||||||||
New vehicle | 5.6 | 6.2 | 5.6 | 5.9 | ||||
Used vehicle - retail | 7.3 | 8.9 | 8.2 | 9.1 | ||||
Parts and service | 43.5 | 41.9 | 43.4 | 42.4 | ||||
Total | 15.2 | 15.5 | 15.6 | 15.6 | ||||
Selling, general, and administrative expenses | 10.6 | 10.5 | 10.8 | 10.9 | ||||
Operating income | 3.8 | 4.5 | 4.2 | 4.3 | ||||
Operating items as a percentage of total gross profit: | ||||||||
Selling, general, and administrative expenses | 70.0 | 67.9 | 69.4 | 69.6 | ||||
Operating income | 24.7 | 28.9 | 26.8 | 27.5 |
Segment Operating Highlights | Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||||
2015 | 2014 | $ Variance | % Variance | 2015 | 2014 | $ Variance | % Variance | ||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
Domestic | $ | 1,770.8 | $ | 1,620.9 | $ | 149.9 | 9.2 | $ | 7,069.8 | $ | 6,359.5 | $ | 710.3 | 11.2 | |||||||||||||||
Import | 1,726.1 | 1,662.8 | 63.3 | 3.8 | 7,037.2 | 6,717.8 | 319.4 | 4.8 | |||||||||||||||||||||
Premium luxury | 1,804.6 | 1,728.1 | 76.5 | 4.4 | 6,607.8 | 5,889.3 | 718.5 | 12.2 | |||||||||||||||||||||
Total | 5,301.5 | 5,011.8 | 289.7 | 5.8 | 20,714.8 | 18,966.6 | 1,748.2 | 9.2 | |||||||||||||||||||||
Corporate and other | 38.3 | 36.0 | 2.3 | 6.4 | 147.2 | 142.2 | 5.0 | 3.5 | |||||||||||||||||||||
Total consolidated revenue | $ | 5,339.8 | $ | 5,047.8 | $ | 292.0 | 5.8 | $ | 20,862.0 | $ | 19,108.8 | $ | 1,753.2 | 9.2 | |||||||||||||||
Segment income*: | |||||||||||||||||||||||||||||
Domestic | $ | 78.1 | $ | 74.0 | $ | 4.1 | 5.5 | $ | 336.9 | $ | 285.0 | $ | 51.9 | 18.2 | |||||||||||||||
Import | 70.8 | 71.3 | (0.5 | ) | (0.7 | ) | 311.4 | 291.3 | 20.1 | 6.9 | |||||||||||||||||||
Premium luxury | 102.3 | 113.0 | (10.7 | ) | (9.5 | ) | 376.2 | 366.1 | 10.1 | 2.8 | |||||||||||||||||||
Total | 251.2 | 258.3 | (7.1 | ) | (2.7 | ) | 1,024.5 | 942.4 | 82.1 | 8.7 | |||||||||||||||||||
Corporate and other | (67.0 | ) | (45.5 | ) | (21.5 | ) | (209.7 | ) | (174.9 | ) | (34.8 | ) | |||||||||||||||||
Add: Floorplan interest expense | 16.2 | 13.7 | 2.5 | 58.3 | 53.3 | 5.0 | |||||||||||||||||||||||
Operating income | $ | 200.4 | $ | 226.5 | $ | (26.1 | ) | (11.5 | ) | $ | 873.1 | $ | 820.8 | $ | 52.3 | 6.4 | |||||||||||||
* Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense. | |||||||||||||||||||||||||||||
Retail new vehicle unit sales: | |||||||||||||||||||||||||||||
Domestic | 27,410 | 25,605 | 1,805 | 7.0 | 111,519 | 102,643 | 8,876 | 8.6 | |||||||||||||||||||||
Import | 38,631 | 37,691 | 940 | 2.5 | 157,868 | 154,066 | 3,802 | 2.5 | |||||||||||||||||||||
Premium luxury | 19,699 | 19,253 | 446 | 2.3 | 69,693 | 61,299 | 8,394 | 13.7 | |||||||||||||||||||||
85,740 | 82,549 | 3,191 | 3.9 | 339,080 | 318,008 | 21,072 | 6.6 | ||||||||||||||||||||||
Brand Mix - New Vehicle Retail Units Sold | Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||||
2015 (%) | 2014 (%) | 2015 (%) | 2014 (%) | ||||||||||||||||||||||||||
Domestic: | |||||||||||||||||||||||||||||
Ford, Lincoln | 15.0 | 15.2 | 16.0 | 16.4 | |||||||||||||||||||||||||
Chevrolet, Buick, Cadillac, GMC | 10.0 | 9.7 | 10.2 | 9.8 | |||||||||||||||||||||||||
Chrysler, Jeep, Dodge, Ram | 7.0 | 6.1 | 6.7 | 6.1 | |||||||||||||||||||||||||
Domestic total | 32.0 | 31.0 | 32.9 | 32.3 | |||||||||||||||||||||||||
Import: | |||||||||||||||||||||||||||||
Honda | 10.5 | 10.8 | 11.0 | 11.7 | |||||||||||||||||||||||||
Toyota | 18.3 | 18.4 | 18.8 | 19.3 | |||||||||||||||||||||||||
Nissan | 8.9 | 9.5 | 9.6 | 10.5 | |||||||||||||||||||||||||
Other imports | 7.3 | 7.0 | 7.1 | 6.9 | |||||||||||||||||||||||||
Import total | 45.0 | 45.7 | 46.5 | 48.4 | |||||||||||||||||||||||||
Premium Luxury: | |||||||||||||||||||||||||||||
Mercedes-Benz | 9.7 | 9.8 | 8.6 | 7.9 | |||||||||||||||||||||||||
BMW | 5.6 | 6.0 | 4.8 | 5.1 | |||||||||||||||||||||||||
Lexus | 3.2 | 3.4 | 2.9 | 2.8 | |||||||||||||||||||||||||
Audi | 2.0 | 2.0 | 2.0 | 1.6 | |||||||||||||||||||||||||
Other premium luxury (Land Rover, Porsche) | 2.5 | 2.1 | 2.3 | 1.9 | |||||||||||||||||||||||||
Premium Luxury total | 23.0 | 23.3 | 20.6 | 19.3 | |||||||||||||||||||||||||
100.0 | 100.0 | 100.0 | 100.0 |
Capital Expenditures / Stock Repurchases | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Capital expenditures (1) | $ | 78.7 | $ | 58.0 | $ | 266.9 | $ | 197.8 | ||||||||
Cash paid for acquisitions (2) | $ | 197.7 | $ | 191.8 | $ | 321.5 | $ | 205.2 | ||||||||
Proceeds from exercises of stock options | $ | 5.9 | $ | 5.6 | $ | 30.0 | $ | 35.1 | ||||||||
Stock repurchases: | ||||||||||||||||
Aggregate purchase price | $ | 26.0 | $ | 69.4 | $ | 235.1 | $ | 485.1 | ||||||||
Shares repurchased (in millions) | 0.4 | 1.4 | 3.9 | 9.4 |
Floorplan Assistance and Expense | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||
2015 | 2014 | Variance | 2015 | 2014 | Variance | |||||||||||||||||||
Floorplan assistance earned (included in cost of sales) | $ | 30.7 | $ | 28.1 | $ | 2.6 | $ | 117.8 | $ | 106.2 | $ | 11.6 | ||||||||||||
New vehicle floorplan interest expense | (15.6 | ) | (12.9 | ) | (2.7 | ) | (55.3 | ) | (50.6 | ) | (4.7 | ) | ||||||||||||
Net new vehicle inventory carrying benefit | $ | 15.1 | $ | 15.2 | $ | (0.1 | ) | $ | 62.5 | $ | 55.6 | $ | 6.9 |
Balance Sheet and Other Highlights | December 31, 2015 | December 31, 2014 | ||||||
Cash and cash equivalents | $ | 74.1 | $ | 75.4 | ||||
Inventory | $ | 3,612.0 | $ | 2,899.0 | ||||
Total floorplan notes payable | $ | 3,727.1 | $ | 3,097.2 | ||||
Non-vehicle debt | $ | 2,366.6 | $ | 2,128.4 | ||||
Equity | $ | 2,349.3 | $ | 2,072.1 | ||||
New days supply (industry standard of selling days) | 68 days | 54 days | ||||||
Used days supply (trailing calendar month days) | 43 days | 38 days |
Key Credit Agreement Covenant Compliance Calculations (3) | |||
Leverage ratio | 2.32 | x | |
Covenant | less than or equal to | 3.75 | x |
Capitalization ratio | 61.0 | % | |
Covenant | less than or equal to | 70.0 | % |
(1) | Includes accrued construction in progress and excludes property associated with capital leases entered into during the period. |
(2) | Excludes capital leases. |
(3) | Calculated in accordance with our credit agreement as filed with the SEC. |
Comparable Basis Reconciliations* | Three Months Ended December 31, | |||||||||||||||
Net Income | Diluted Earnings Per Share** | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
As reported | $ | 97.5 | $ | 116.7 | $ | 0.87 | $ | 1.02 | ||||||||
Discontinued operations, net of income taxes | 0.3 | 0.2 | $ | — | $ | — | ||||||||||
From continuing operations, as reported | 97.8 | 116.9 | $ | 0.87 | $ | 1.02 | ||||||||||
Franchise rights impairment | 9.6 | — | $ | 0.09 | $ | — | ||||||||||
Adjusted | $ | 107.4 | $ | 116.9 | $ | 0.96 | $ | 1.02 | ||||||||
Twelve Months Ended December 31, | ||||||||||||||||
Net Income | Diluted Earnings Per Share** | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
As reported | $ | 442.6 | $ | 418.7 | $ | 3.89 | $ | 3.52 | ||||||||
Discontinued operations, net of income taxes | 1.1 | 1.1 | $ | 0.01 | $ | 0.01 | ||||||||||
From continuing operations, as reported | 443.7 | 419.8 | $ | 3.90 | $ | 3.53 | ||||||||||
Franchise rights impairment | 9.6 | — | $ | 0.08 | $ | — | ||||||||||
Net gain related to business/property dispositions | — | (5.0 | ) | $ | — | $ | (0.04 | ) | ||||||||
Adjusted | $ | 453.3 | $ | 414.8 | $ | 3.98 | $ | 3.49 |
* | Please refer to the “Non-GAAP Financial Measures” section of the Press Release. |
** | Diluted earnings per share amounts are calculated discretely and therefore may not add up to the total due to rounding. |
Operating Highlights | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||||||||
2015 | 2014 | $ Variance | % Variance | 2015 | 2014 | $ Variance | % Variance | |||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
New vehicle | $ | 3,028.2 | $ | 2,966.8 | $ | 61.4 | 2.1 | $ | 11,576.5 | $ | 10,885.3 | $ | 691.2 | 6.3 | ||||||||||||||||
Retail used vehicle | 1,022.9 | 1,001.2 | 21.7 | 2.2 | 4,209.2 | 3,957.8 | 251.4 | 6.4 | ||||||||||||||||||||||
Wholesale | 88.1 | 96.9 | (8.8 | ) | (9.1 | ) | 390.7 | 395.0 | (4.3 | ) | (1.1 | ) | ||||||||||||||||||
Used vehicle | 1,111.0 | 1,098.1 | 12.9 | 1.2 | 4,599.9 | 4,352.8 | 247.1 | 5.7 | ||||||||||||||||||||||
Finance and insurance, net | 209.9 | 195.5 | 14.4 | 7.4 | 846.1 | 745.6 | 100.5 | 13.5 | ||||||||||||||||||||||
Total variable operations | 4,349.1 | 4,260.4 | 88.7 | 2.1 | 17,022.5 | 15,983.7 | 1,038.8 | 6.5 | ||||||||||||||||||||||
Parts and service | 751.1 | 722.7 | 28.4 | 3.9 | 2,973.3 | 2,793.1 | 180.2 | 6.5 | ||||||||||||||||||||||
Other | 47.4 | 33.5 | 13.9 | 146.7 | 176.3 | (29.6 | ) | |||||||||||||||||||||||
Total revenue | $ | 5,147.6 | $ | 5,016.6 | $ | 131.0 | 2.6 | $ | 20,142.5 | $ | 18,953.1 | $ | 1,189.4 | 6.3 | ||||||||||||||||
Gross profit: | ||||||||||||||||||||||||||||||
New vehicle | $ | 167.2 | $ | 184.7 | $ | (17.5 | ) | (9.5 | ) | $ | 642.7 | $ | 646.0 | $ | (3.3 | ) | (0.5 | ) | ||||||||||||
Retail used vehicle | 74.7 | 89.4 | (14.7 | ) | (16.4 | ) | 346.3 | 359.6 | (13.3 | ) | (3.7 | ) | ||||||||||||||||||
Wholesale | (2.0 | ) | (1.1 | ) | (0.9 | ) | (4.7 | ) | (2.2 | ) | (2.5 | ) | ||||||||||||||||||
Used vehicle | 72.7 | 88.3 | (15.6 | ) | (17.7 | ) | 341.6 | 357.4 | (15.8 | ) | (4.4 | ) | ||||||||||||||||||
Finance and insurance | 209.9 | 195.5 | 14.4 | 7.4 | 846.1 | 745.6 | 100.5 | 13.5 | ||||||||||||||||||||||
Total variable operations | 449.8 | 468.5 | (18.7 | ) | (4.0 | ) | 1,830.4 | 1,749.0 | 81.4 | 4.7 | ||||||||||||||||||||
Parts and service | 326.1 | 302.2 | 23.9 | 7.9 | 1,285.7 | 1,182.5 | 103.2 | 8.7 | ||||||||||||||||||||||
Other | 6.7 | 7.2 | (0.5 | ) | 27.1 | 30.2 | (3.1 | ) | ||||||||||||||||||||||
Total gross profit | $ | 782.6 | $ | 777.9 | $ | 4.7 | 0.6 | $ | 3,143.2 | $ | 2,961.7 | $ | 181.5 | 6.1 | ||||||||||||||||
Retail vehicle unit sales: | ||||||||||||||||||||||||||||||
New | 82,871 | 81,991 | 880 | 1.1 | 329,431 | 314,683 | 14,748 | 4.7 | ||||||||||||||||||||||
Used | 52,013 | 53,137 | (1,124 | ) | (2.1 | ) | 220,538 | 212,731 | 7,807 | 3.7 | ||||||||||||||||||||
134,884 | 135,128 | (244 | ) | (0.2 | ) | 549,969 | 527,414 | 22,555 | 4.3 | |||||||||||||||||||||
Revenue per vehicle retailed: | ||||||||||||||||||||||||||||||
New | $ | 36,541 | $ | 36,184 | $ | 357 | 1.0 | $ | 35,141 | $ | 34,591 | $ | 550 | 1.6 | ||||||||||||||||
Used | $ | 19,666 | $ | 18,842 | $ | 824 | 4.4 | $ | 19,086 | $ | 18,605 | $ | 481 | 2.6 | ||||||||||||||||
Gross profit per vehicle retailed: | ||||||||||||||||||||||||||||||
New | $ | 2,018 | $ | 2,253 | $ | (235 | ) | (10.4 | ) | $ | 1,951 | $ | 2,053 | $ | (102 | ) | (5.0 | ) | ||||||||||||
Used | $ | 1,436 | $ | 1,682 | $ | (246 | ) | (14.6 | ) | $ | 1,570 | $ | 1,690 | $ | (120 | ) | (7.1 | ) | ||||||||||||
Finance and insurance | $ | 1,556 | $ | 1,447 | $ | 109 | 7.5 | $ | 1,538 | $ | 1,414 | $ | 124 | 8.8 | ||||||||||||||||
Total variable operations(1) | $ | 3,350 | $ | 3,475 | $ | (125 | ) | (3.6 | ) | $ | 3,337 | $ | 3,320 | $ | 17 | 0.5 | ||||||||||||||
(1) Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle, retail used vehicle, and finance and insurance gross profit by total retail vehicle unit sales. |
Operating Percentages | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||
2015 (%) | 2014 (%) | 2015 (%) | 2014 (%) | |||||
Revenue mix percentages: | ||||||||
New vehicle | 58.8 | 59.1 | 57.5 | 57.4 | ||||
Used vehicle | 21.6 | 21.9 | 22.8 | 23.0 | ||||
Parts and service | 14.6 | 14.4 | 14.8 | 14.7 | ||||
Finance and insurance, net | 4.1 | 3.9 | 4.2 | 3.9 | ||||
Other | 0.9 | 0.7 | 0.7 | 1.0 | ||||
100.0 | 100.0 | 100.0 | 100.0 | |||||
Gross profit mix percentages: | ||||||||
New vehicle | 21.4 | 23.7 | 20.4 | 21.8 | ||||
Used vehicle | 9.3 | 11.4 | 10.9 | 12.1 | ||||
Parts and service | 41.7 | 38.8 | 40.9 | 39.9 | ||||
Finance and insurance | 26.8 | 25.1 | 26.9 | 25.2 | ||||
Other | 0.8 | 1.0 | 0.9 | 1.0 | ||||
100.0 | 100.0 | 100.0 | 100.0 | |||||
Operating items as a percentage of revenue: | ||||||||
Gross profit: | ||||||||
New vehicle | 5.5 | 6.2 | 5.6 | 5.9 | ||||
Used vehicle - retail | 7.3 | 8.9 | 8.2 | 9.1 | ||||
Parts and service | 43.4 | 41.8 | 43.2 | 42.3 | ||||
Total | 15.2 | 15.5 | 15.6 | 15.6 |