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 |
AUTONATION, INC. | ||||
Date: | February 1, 2018 | By: | /s/ C. Coleman Edmunds | |
C. Coleman Edmunds | ||||
Executive Vice President, General Counsel and Corporate Secretary |
![]() | Contact: Marc Cannon (954) 769-3146 cannonm@autonation.com Robert Quartaro (954) 769-7342 quartaror@autonation.com |
• | EPS from continuing operations was an all-time record $1.64, up 44% compared to fourth quarter 2016 EPS from continuing operations of $1.14 |
• | Total revenue of $5.7 billion increased by 4% compared to the year-ago period. Same store revenue of $5.6 billion increased by 4% compared to the year-ago period |
• | Same store gross profit of $851 million increased by 7% compared to the year-ago period, driven by an all-time record same store Customer Financial Services gross profit per vehicle retailed of $1,732, an increase of 11%, and strong same store Customer Care gross profit growth of 6% |
• | The recent tax reform bill positively impacted fourth quarter 2017 net income from continuing operations by $41 million, or $0.45 per share |
• | Domestic – Domestic segment income(2) was $67 million compared to year-ago segment income of $64 million, an increase of 4%. |
• | Import – Import segment income(2) was $75 million compared to year-ago segment income of $67 million, an increase of 13%. |
• | Premium Luxury – Premium Luxury segment income(2) was $106 million compared to year-ago segment income of $93 million, an increase of 13%. |
(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; 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, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue: | |||||||||||||||
New vehicle | $ | 3,345.3 | $ | 3,187.8 | $ | 12,180.8 | $ | 12,255.8 | |||||||
Used vehicle | 1,208.1 | 1,217.5 | 4,878.4 | 4,995.3 | |||||||||||
Parts and service | 854.1 | 822.5 | 3,398.3 | 3,321.4 | |||||||||||
Finance and insurance, net | 247.2 | 216.5 | 939.2 | 894.6 | |||||||||||
Other | 28.8 | 36.2 | 137.9 | 141.9 | |||||||||||
Total revenue | 5,683.5 | 5,480.5 | 21,534.6 | 21,609.0 | |||||||||||
Cost of sales: | |||||||||||||||
New vehicle | 3,184.2 | 3,022.2 | 11,592.4 | 11,620.0 | |||||||||||
Used vehicle | 1,130.1 | 1,152.1 | 4,563.2 | 4,677.7 | |||||||||||
Parts and service | 479.4 | 467.9 | 1,907.6 | 1,886.7 | |||||||||||
Other | 22.6 | 29.2 | 112.4 | 111.4 | |||||||||||
Total cost of sales | 4,816.3 | 4,671.4 | 18,175.6 | 18,295.8 | |||||||||||
Gross profit | 867.2 | 809.1 | 3,359.0 | 3,313.2 | |||||||||||
Selling, general, and administrative expenses | 622.1 | 584.2 | 2,436.2 | 2,349.4 | |||||||||||
Depreciation and amortization | 40.6 | 36.4 | 158.6 | 143.4 | |||||||||||
Other income, net | (24.8 | ) | (48.1 | ) | (79.2 | ) | (69.1 | ) | |||||||
Operating income | 229.3 | 236.6 | 843.4 | 889.5 | |||||||||||
Non-operating income (expense) items: | |||||||||||||||
Floorplan interest expense | (26.3 | ) | (20.1 | ) | (97.0 | ) | (76.5 | ) | |||||||
Other interest expense | (32.2 | ) | (29.6 | ) | (120.2 | ) | (115.5 | ) | |||||||
Interest income | 0.2 | 0.3 | 1.0 | 1.1 | |||||||||||
Other income, net | 2.9 | 0.3 | 9.3 | 3.7 | |||||||||||
Income from continuing operations before income taxes | 173.9 | 187.5 | 636.5 | 702.3 | |||||||||||
Income tax provision | 22.4 | 71.9 | 201.5 | 270.6 | |||||||||||
Net income from continuing operations | 151.5 | 115.6 | 435.0 | 431.7 | |||||||||||
Loss from discontinued operations, net of income taxes | (0.2 | ) | (0.3 | ) | (0.4 | ) | (1.2 | ) | |||||||
Net income | $ | 151.3 | $ | 115.3 | $ | 434.6 | $ | 430.5 | |||||||
Diluted earnings (loss) per share*: | |||||||||||||||
Continuing operations | $ | 1.64 | $ | 1.14 | $ | 4.43 | $ | 4.16 | |||||||
Discontinued operations | $ | — | $ | — | $ | — | $ | (0.01 | ) | ||||||
Net income | $ | 1.64 | $ | 1.14 | $ | 4.43 | $ | 4.15 | |||||||
Weighted average common shares outstanding | 92.3 | 101.5 | 98.2 | 103.8 | |||||||||||
Common shares outstanding, net of treasury stock, at period end | 91.6 | 100.7 | 91.6 | 100.7 |
* | 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, | ||||||||||||||||||||||||||||
2017 | 2016 | $ Variance | % Variance | 2017 | 2016 | $ Variance | % Variance | |||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
New vehicle | $ | 3,345.3 | $ | 3,187.8 | $ | 157.5 | 4.9 | $ | 12,180.8 | $ | 12,255.8 | $ | (75.0 | ) | (0.6 | ) | ||||||||||||||
Retail used vehicle | 1,138.4 | 1,111.3 | 27.1 | 2.4 | 4,577.1 | 4,481.7 | 95.4 | 2.1 | ||||||||||||||||||||||
Wholesale | 69.7 | 106.2 | (36.5 | ) | (34.4 | ) | 301.3 | 513.6 | (212.3 | ) | (41.3 | ) | ||||||||||||||||||
Used vehicle | 1,208.1 | 1,217.5 | (9.4 | ) | (0.8 | ) | 4,878.4 | 4,995.3 | (116.9 | ) | (2.3 | ) | ||||||||||||||||||
Finance and insurance, net | 247.2 | 216.5 | 30.7 | 14.2 | 939.2 | 894.6 | 44.6 | 5.0 | ||||||||||||||||||||||
Total variable operations | 4,800.6 | 4,621.8 | 178.8 | 3.9 | 17,998.4 | 18,145.7 | (147.3 | ) | (0.8 | ) | ||||||||||||||||||||
Parts and service | 854.1 | 822.5 | 31.6 | 3.8 | 3,398.3 | 3,321.4 | 76.9 | 2.3 | ||||||||||||||||||||||
Other | 28.8 | 36.2 | (7.4 | ) | 137.9 | 141.9 | (4.0 | ) | ||||||||||||||||||||||
Total revenue | $ | 5,683.5 | $ | 5,480.5 | $ | 203.0 | 3.7 | $ | 21,534.6 | $ | 21,609.0 | $ | (74.4 | ) | (0.3 | ) | ||||||||||||||
Gross profit: | ||||||||||||||||||||||||||||||
New vehicle | $ | 161.1 | $ | 165.6 | $ | (4.5 | ) | (2.7 | ) | $ | 588.4 | $ | 635.8 | $ | (47.4 | ) | (7.5 | ) | ||||||||||||
Retail used vehicle | 75.2 | 69.8 | 5.4 | 7.7 | 308.0 | 334.9 | (26.9 | ) | (8.0 | ) | ||||||||||||||||||||
Wholesale | 2.8 | (4.4 | ) | 7.2 | 7.2 | (17.3 | ) | 24.5 | ||||||||||||||||||||||
Used vehicle | 78.0 | 65.4 | 12.6 | 19.3 | 315.2 | 317.6 | (2.4 | ) | (0.8 | ) | ||||||||||||||||||||
Finance and insurance | 247.2 | 216.5 | 30.7 | 14.2 | 939.2 | 894.6 | 44.6 | 5.0 | ||||||||||||||||||||||
Total variable operations | 486.3 | 447.5 | 38.8 | 8.7 | 1,842.8 | 1,848.0 | (5.2 | ) | (0.3 | ) | ||||||||||||||||||||
Parts and service | 374.7 | 354.6 | 20.1 | 5.7 | 1,490.7 | 1,434.7 | 56.0 | 3.9 | ||||||||||||||||||||||
Other | 6.2 | 7.0 | (0.8 | ) | 25.5 | 30.5 | (5.0 | ) | ||||||||||||||||||||||
Total gross profit | 867.2 | 809.1 | 58.1 | 7.2 | 3,359.0 | 3,313.2 | 45.8 | 1.4 | ||||||||||||||||||||||
Selling, general, and administrative expenses | 622.1 | 584.2 | (37.9 | ) | (6.5 | ) | 2,436.2 | 2,349.4 | (86.8 | ) | (3.7 | ) | ||||||||||||||||||
Depreciation and amortization | 40.6 | 36.4 | (4.2 | ) | 158.6 | 143.4 | (15.2 | ) | ||||||||||||||||||||||
Other income, net | (24.8 | ) | (48.1 | ) | (23.3 | ) | (79.2 | ) | (69.1 | ) | 10.1 | |||||||||||||||||||
Operating income | 229.3 | 236.6 | (7.3 | ) | (3.1 | ) | 843.4 | 889.5 | (46.1 | ) | (5.2 | ) | ||||||||||||||||||
Non-operating income (expense) items: | ||||||||||||||||||||||||||||||
Floorplan interest expense | (26.3 | ) | (20.1 | ) | (6.2 | ) | (97.0 | ) | (76.5 | ) | (20.5 | ) | ||||||||||||||||||
Other interest expense | (32.2 | ) | (29.6 | ) | (2.6 | ) | (120.2 | ) | (115.5 | ) | (4.7 | ) | ||||||||||||||||||
Interest income | 0.2 | 0.3 | (0.1 | ) | 1.0 | 1.1 | (0.1 | ) | ||||||||||||||||||||||
Other income, net | 2.9 | 0.3 | 2.6 | 9.3 | 3.7 | 5.6 | ||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 173.9 | $ | 187.5 | $ | (13.6 | ) | (7.3 | ) | $ | 636.5 | $ | 702.3 | $ | (65.8 | ) | (9.4 | ) | ||||||||||||
Retail vehicle unit sales: | ||||||||||||||||||||||||||||||
New | 87,234 | 84,622 | 2,612 | 3.1 | 329,116 | 337,622 | (8,506 | ) | (2.5 | ) | ||||||||||||||||||||
Used | 55,944 | 55,213 | 731 | 1.3 | 234,148 | 225,713 | 8,435 | 3.7 | ||||||||||||||||||||||
143,178 | 139,835 | 3,343 | 2.4 | 563,264 | 563,335 | (71 | ) | — | ||||||||||||||||||||||
Revenue per vehicle retailed: | ||||||||||||||||||||||||||||||
New | $ | 38,349 | $ | 37,671 | $ | 678 | 1.8 | $ | 37,011 | $ | 36,300 | $ | 711 | 2.0 | ||||||||||||||||
Used | $ | 20,349 | $ | 20,128 | $ | 221 | 1.1 | $ | 19,548 | $ | 19,856 | $ | (308 | ) | (1.6 | ) | ||||||||||||||
Gross profit per vehicle retailed: | ||||||||||||||||||||||||||||||
New | $ | 1,847 | $ | 1,957 | $ | (110 | ) | (5.6 | ) | $ | 1,788 | $ | 1,883 | $ | (95 | ) | (5.0 | ) | ||||||||||||
Used | $ | 1,344 | $ | 1,264 | $ | 80 | 6.3 | $ | 1,315 | $ | 1,484 | $ | (169 | ) | (11.4 | ) | ||||||||||||||
Finance and insurance | $ | 1,727 | $ | 1,548 | $ | 179 | 11.6 | $ | 1,667 | $ | 1,588 | $ | 79 | 5.0 | ||||||||||||||||
Total variable operations(1) | $ | 3,377 | $ | 3,232 | $ | 145 | 4.5 | $ | 3,259 | $ | 3,311 | $ | (52 | ) | (1.6 | ) | ||||||||||||||
(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, | ||||||
2017 (%) | 2016 (%) | 2017 (%) | 2016 (%) | |||||
Revenue mix percentages: | ||||||||
New vehicle | 58.9 | 58.2 | 56.6 | 56.7 | ||||
Used vehicle | 21.3 | 22.2 | 22.7 | 23.1 | ||||
Parts and service | 15.0 | 15.0 | 15.8 | 15.4 | ||||
Finance and insurance, net | 4.3 | 4.0 | 4.4 | 4.1 | ||||
Other | 0.5 | 0.6 | 0.5 | 0.7 | ||||
100.0 | 100.0 | 100.0 | 100.0 | |||||
Gross profit mix percentages: | ||||||||
New vehicle | 18.6 | 20.5 | 17.5 | 19.2 | ||||
Used vehicle | 9.0 | 8.1 | 9.4 | 9.6 | ||||
Parts and service | 43.2 | 43.8 | 44.4 | 43.3 | ||||
Finance and insurance | 28.5 | 26.8 | 28.0 | 27.0 | ||||
Other | 0.7 | 0.8 | 0.7 | 0.9 | ||||
100.0 | 100.0 | 100.0 | 100.0 | |||||
Operating items as a percentage of revenue: | ||||||||
Gross profit: | ||||||||
New vehicle | 4.8 | 5.2 | 4.8 | 5.2 | ||||
Used vehicle - retail | 6.6 | 6.3 | 6.7 | 7.5 | ||||
Parts and service | 43.9 | 43.1 | 43.9 | 43.2 | ||||
Total | 15.3 | 14.8 | 15.6 | 15.3 | ||||
Selling, general, and administrative expenses | 10.9 | 10.7 | 11.3 | 10.9 | ||||
Operating income | 4.0 | 4.3 | 3.9 | 4.1 | ||||
Operating items as a percentage of total gross profit: | ||||||||
Selling, general, and administrative expenses | 71.7 | 72.2 | 72.5 | 70.9 | ||||
Operating income | 26.4 | 29.2 | 25.1 | 26.8 |
Segment Operating Highlights | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||||||||
2017 | 2016 | $ Variance | % Variance | 2017 | 2016 | $ Variance | % Variance | |||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
Domestic | $ | 1,895.1 | $ | 1,921.8 | $ | (26.7 | ) | (1.4 | ) | $ | 7,452.8 | $ | 7,810.0 | $ | (357.2 | ) | (4.6 | ) | ||||||||||||
Import | 1,749.9 | 1,684.0 | 65.9 | 3.9 | 6,873.4 | 6,886.1 | (12.7 | ) | (0.2 | ) | ||||||||||||||||||||
Premium luxury | 1,937.8 | 1,799.7 | 138.1 | 7.7 | 6,832.7 | 6,665.3 | 167.4 | 2.5 | ||||||||||||||||||||||
Total | 5,582.8 | 5,405.5 | 177.3 | 3.3 | 21,158.9 | 21,361.4 | (202.5 | ) | (0.9 | ) | ||||||||||||||||||||
Corporate and other | 100.7 | 75.0 | 25.7 | 34.3 | 375.7 | 247.6 | 128.1 | 51.7 | ||||||||||||||||||||||
Total consolidated revenue | $ | 5,683.5 | $ | 5,480.5 | $ | 203.0 | 3.7 | $ | 21,534.6 | $ | 21,609.0 | $ | (74.4 | ) | (0.3 | ) | ||||||||||||||
Segment income*: | ||||||||||||||||||||||||||||||
Domestic | $ | 66.6 | $ | 64.2 | $ | 2.4 | 3.7 | $ | 257.1 | $ | 311.1 | $ | (54.0 | ) | (17.4 | ) | ||||||||||||||
Import | 75.2 | 66.8 | 8.4 | 12.6 | 303.1 | 296.8 | 6.3 | 2.1 | ||||||||||||||||||||||
Premium luxury | 105.5 | 93.4 | 12.1 | 13.0 | 348.8 | 350.2 | (1.4 | ) | (0.4 | ) | ||||||||||||||||||||
Total | 247.3 | 224.4 | 22.9 | 10.2 | 909.0 | 958.1 | (49.1 | ) | (5.1 | ) | ||||||||||||||||||||
Corporate and other | (44.3 | ) | (7.9 | ) | (36.4 | ) | (162.6 | ) | (145.1 | ) | (17.5 | ) | ||||||||||||||||||
Add: Floorplan interest expense | 26.3 | 20.1 | 6.2 | 97.0 | 76.5 | 20.5 | ||||||||||||||||||||||||
Operating income | $ | 229.3 | $ | 236.6 | $ | (7.3 | ) | (3.1 | ) | $ | 843.4 | $ | 889.5 | $ | (46.1 | ) | (5.2 | ) | ||||||||||||
* 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 | 28,263 | 28,711 | (448 | ) | (1.6 | ) | 111,028 | 118,867 | (7,839 | ) | (6.6 | ) | ||||||||||||||||||
Import | 38,641 | 36,488 | 2,153 | 5.9 | 150,422 | 150,005 | 417 | 0.3 | ||||||||||||||||||||||
Premium luxury | 20,330 | 19,423 | 907 | 4.7 | 67,666 | 68,750 | (1,084 | ) | (1.6 | ) | ||||||||||||||||||||
87,234 | 84,622 | 2,612 | 3.1 | 329,116 | 337,622 | (8,506 | ) | (2.5 | ) | |||||||||||||||||||||
Brand Mix - New Vehicle Retail Units Sold | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||||||||
2017 (%) | 2016 (%) | 2017 (%) | 2016 (%) | |||||||||||||||||||||||||||
Domestic: | ||||||||||||||||||||||||||||||
Ford, Lincoln | 13.0 | 13.8 | 13.6 | 14.7 | ||||||||||||||||||||||||||
Chevrolet, Buick, Cadillac, GMC | 11.1 | 10.7 | 10.7 | 11.1 | ||||||||||||||||||||||||||
Chrysler, Dodge, Jeep, Ram | 8.3 | 9.4 | 9.4 | 9.4 | ||||||||||||||||||||||||||
Domestic total | 32.4 | 33.9 | 33.7 | 35.2 | ||||||||||||||||||||||||||
Import: | ||||||||||||||||||||||||||||||
Toyota | 17.9 | 17.7 | 18.6 | 17.6 | ||||||||||||||||||||||||||
Honda | 12.9 | 12.0 | 13.1 | 12.4 | ||||||||||||||||||||||||||
Nissan | 6.6 | 6.6 | 6.8 | 7.6 | ||||||||||||||||||||||||||
Other Import | 6.9 | 6.8 | 7.2 | 6.8 | ||||||||||||||||||||||||||
Import total | 44.3 | 43.1 | 45.7 | 44.4 | ||||||||||||||||||||||||||
Premium Luxury: | ||||||||||||||||||||||||||||||
Mercedes-Benz | 9.5 | 9.6 | 8.1 | 8.6 | ||||||||||||||||||||||||||
BMW | 5.4 | 5.3 | 4.7 | 4.5 | ||||||||||||||||||||||||||
Lexus | 2.7 | 3.1 | 2.6 | 2.7 | ||||||||||||||||||||||||||
Audi | 2.6 | 2.4 | 2.4 | 2.2 | ||||||||||||||||||||||||||
Other Premium Luxury (Land Rover, Porsche) | 3.1 | 2.6 | 2.8 | 2.4 | ||||||||||||||||||||||||||
Premium Luxury total | 23.3 | 23.0 | 20.6 | 20.4 | ||||||||||||||||||||||||||
100.0 | 100.0 | 100.0 | 100.0 |
Capital Expenditures / Stock Repurchases | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Capital expenditures (1) | $ | 108.3 | $ | 71.4 | $ | 332.9 | $ | 253.2 | ||||||||
Cash paid for acquisitions, net of cash acquired (2) | $ | 20.0 | $ | 47.9 | $ | 76.8 | $ | 410.4 | ||||||||
Proceeds from exercises of stock options | $ | 15.0 | $ | 0.6 | $ | 39.7 | $ | 8.4 | ||||||||
Stock repurchases: | ||||||||||||||||
Aggregate purchase price | $ | — | $ | 26.4 | $ | 434.9 | $ | 497.0 | ||||||||
Shares repurchased (in millions) | — | 0.6 | 10.1 | 10.5 |
Floorplan Assistance and Expense | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||
2017 | 2016 | Variance | 2017 | 2016 | Variance | |||||||||||||||||||
Floorplan assistance earned (included in cost of sales) | $ | 33.4 | $ | 31.7 | $ | 1.7 | $ | 122.1 | $ | 124.0 | $ | (1.9 | ) | |||||||||||
New vehicle floorplan interest expense | (24.1 | ) | (18.6 | ) | (5.5 | ) | (90.4 | ) | (71.5 | ) | (18.9 | ) | ||||||||||||
Net new vehicle inventory carrying benefit | $ | 9.3 | $ | 13.1 | $ | (3.8 | ) | $ | 31.7 | $ | 52.5 | $ | (20.8 | ) |
Balance Sheet and Other Highlights | December 31, 2017 | December 31, 2016 | ||||||
Cash and cash equivalents | $ | 69.2 | $ | 64.8 | ||||
Inventory | $ | 3,365.6 | $ | 3,520.1 | ||||
Total floorplan notes payable | $ | 3,806.9 | $ | 3,849.2 | ||||
Non-vehicle debt | $ | 2,703.7 | $ | 2,720.6 | ||||
Equity | $ | 2,369.3 | $ | 2,310.3 | ||||
New days supply (industry standard of selling days) | 53 days | 61 days | ||||||
Used days supply (trailing calendar month days) | 43 days | 44 days |
Key Credit Agreement Covenant Compliance Calculations (3) | |||
Leverage ratio | 2.82 | x | |
Covenant | less than or equal to | 4.25 | x |
Capitalization ratio | 62.4 | % | |
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 and deferred purchase price commitments. |
(3) | Calculated in accordance with our credit agreement as filed with the SEC. |
Operating Highlights | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||||||||
2017 | 2016 | $ Variance | % Variance | 2017 | 2016 | $ Variance | % Variance | |||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
New vehicle | $ | 3,291.5 | $ | 3,119.4 | $ | 172.1 | 5.5 | $ | 11,818.8 | $ | 11,886.8 | $ | (68.0 | ) | (0.6 | ) | ||||||||||||||
Retail used vehicle | 1,110.7 | 1,086.1 | 24.6 | 2.3 | 4,420.1 | 4,333.7 | 86.4 | 2.0 | ||||||||||||||||||||||
Wholesale | 66.0 | 103.2 | (37.2 | ) | (36.0 | ) | 286.1 | 495.1 | (209.0 | ) | (42.2 | ) | ||||||||||||||||||
Used vehicle | 1,176.7 | 1,189.3 | (12.6 | ) | (1.1 | ) | 4,706.2 | 4,828.8 | (122.6 | ) | (2.5 | ) | ||||||||||||||||||
Finance and insurance, net | 243.7 | 212.9 | 30.8 | 14.5 | 918.5 | 871.3 | 47.2 | 5.4 | ||||||||||||||||||||||
Total variable operations | 4,711.9 | 4,521.6 | 190.3 | 4.2 | 17,443.5 | 17,586.9 | (143.4 | ) | (0.8 | ) | ||||||||||||||||||||
Parts and service | 841.0 | 806.1 | 34.9 | 4.3 | 3,307.3 | 3,220.3 | 87.0 | 2.7 | ||||||||||||||||||||||
Other | 28.4 | 35.7 | (7.3 | ) | 137.0 | 140.8 | (3.8 | ) | ||||||||||||||||||||||
Total revenue | $ | 5,581.3 | $ | 5,363.4 | $ | 217.9 | 4.1 | $ | 20,887.8 | $ | 20,948.0 | $ | (60.2 | ) | (0.3 | ) | ||||||||||||||
Gross profit: | ||||||||||||||||||||||||||||||
New vehicle | $ | 158.1 | $ | 162.7 | $ | (4.6 | ) | (2.8 | ) | $ | 569.3 | $ | 622.8 | $ | (53.5 | ) | (8.6 | ) | ||||||||||||
Retail used vehicle | 73.9 | 68.2 | 5.7 | 8.4 | 299.9 | 323.8 | (23.9 | ) | (7.4 | ) | ||||||||||||||||||||
Wholesale | 0.5 | (4.2 | ) | 4.7 | 0.6 | (15.9 | ) | 16.5 | ||||||||||||||||||||||
Used vehicle | 74.4 | 64.0 | 10.4 | 16.3 | 300.5 | 307.9 | (7.4 | ) | (2.4 | ) | ||||||||||||||||||||
Finance and insurance | 243.7 | 212.9 | 30.8 | 14.5 | 918.5 | 871.3 | 47.2 | 5.4 | ||||||||||||||||||||||
Total variable operations | 476.2 | 439.6 | 36.6 | 8.3 | 1,788.3 | 1,802.0 | (13.7 | ) | (0.8 | ) | ||||||||||||||||||||
Parts and service | 369.1 | 347.3 | 21.8 | 6.3 | 1,451.5 | 1,389.9 | 61.6 | 4.4 | ||||||||||||||||||||||
Other | 6.1 | 6.8 | (0.7 | ) | 24.9 | 29.9 | (5.0 | ) | ||||||||||||||||||||||
Total gross profit | $ | 851.4 | $ | 793.7 | $ | 57.7 | 7.3 | $ | 3,264.7 | $ | 3,221.8 | $ | 42.9 | 1.3 | ||||||||||||||||
Retail vehicle unit sales: | ||||||||||||||||||||||||||||||
New | 86,125 | 82,625 | 3,500 | 4.2 | 320,641 | 325,927 | (5,286 | ) | (1.6 | ) | ||||||||||||||||||||
Used | 54,614 | 53,708 | 906 | 1.7 | 225,985 | 216,447 | 9,538 | 4.4 | ||||||||||||||||||||||
140,739 | 136,333 | 4,406 | 3.2 | 546,626 | 542,374 | 4,252 | 0.8 | |||||||||||||||||||||||
Revenue per vehicle retailed: | ||||||||||||||||||||||||||||||
New | $ | 38,218 | $ | 37,754 | $ | 464 | 1.2 | $ | 36,860 | $ | 36,471 | $ | 389 | 1.1 | ||||||||||||||||
Used | $ | 20,337 | $ | 20,222 | $ | 115 | 0.6 | $ | 19,559 | $ | 20,022 | $ | (463 | ) | (2.3 | ) | ||||||||||||||
Gross profit per vehicle retailed: | ||||||||||||||||||||||||||||||
New | $ | 1,836 | $ | 1,969 | $ | (133 | ) | (6.8 | ) | $ | 1,776 | $ | 1,911 | $ | (135 | ) | (7.1 | ) | ||||||||||||
Used | $ | 1,353 | $ | 1,270 | $ | 83 | 6.5 | $ | 1,327 | $ | 1,496 | $ | (169 | ) | (11.3 | ) | ||||||||||||||
Finance and insurance | $ | 1,732 | $ | 1,562 | $ | 170 | 10.9 | $ | 1,680 | $ | 1,606 | $ | 74 | 4.6 | ||||||||||||||||
Total variable operations(1) | $ | 3,380 | $ | 3,255 | $ | 125 | 3.8 | $ | 3,270 | $ | 3,352 | $ | (82 | ) | (2.4 | ) | ||||||||||||||
(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, | ||||||
2017 (%) | 2016 (%) | 2017 (%) | 2016 (%) | |||||
Revenue mix percentages: | ||||||||
New vehicle | 59.0 | 58.2 | 56.6 | 56.7 | ||||
Used vehicle | 21.1 | 22.2 | 22.5 | 23.1 | ||||
Parts and service | 15.1 | 15.0 | 15.8 | 15.4 | ||||
Finance and insurance, net | 4.4 | 4.0 | 4.4 | 4.2 | ||||
Other | 0.4 | 0.6 | 0.7 | 0.6 | ||||
100.0 | 100.0 | 100.0 | 100.0 | |||||
Gross profit mix percentages: | ||||||||
New vehicle | 18.6 | 20.5 | 17.4 | 19.3 | ||||
Used vehicle | 8.7 | 8.1 | 9.2 | 9.6 | ||||
Parts and service | 43.4 | 43.8 | 44.5 | 43.1 | ||||
Finance and insurance | 28.6 | 26.8 | 28.1 | 27.0 | ||||
Other | 0.7 | 0.8 | 0.8 | 1.0 | ||||
100.0 | 100.0 | 100.0 | 100.0 | |||||
Operating items as a percentage of revenue: | ||||||||
Gross profit: | ||||||||
New vehicle | 4.8 | 5.2 | 4.8 | 5.2 | ||||
Used vehicle - retail | 6.7 | 6.3 | 6.8 | 7.5 | ||||
Parts and service | 43.9 | 43.1 | 43.9 | 43.2 | ||||
Total | 15.3 | 14.8 | 15.6 | 15.4 |