AutoNation (AN) Q3 2021 earnings summary

Executive summary

• Sixth consecutive all-time record quarter; Q3 GAAP diluted EPS from continuing operations was $5.12, up 150% YoY and 115% vs. prior-year adjusted EPS of $2.38. No Q3 2021 adjustments.

• Same-store revenue reached $6.4B, up 18% YoY and 18% vs. Q3 2019; same-store gross profit rose 29% YoY and 45% vs. Q3 2019.

Financial highlights

• Q3 revenue was $6.38B, up 18% YoY; gross profit was $1.27B, up 31%; operating income was $503.3M, up 85%.

• Q3 net income from continuing operations was $361.7M, or $5.12 diluted EPS, vs. $182.6M and $2.05 a year earlier.

• 9M revenue was $19.26B, up 32% YoY; operating income was $1.37B, net income from continuing operations $986.1M, and diluted EPS $12.63.

• Adjusted 9M net income from continuing operations was $980.4M and adjusted diluted EPS was $12.55, vs. $418.1M and $4.70 in 2020.

Outlook and guidance

• Pent-up new-vehicle demand was expected to support sales for the foreseeable future, while production constraints and low inventory continued to limit new-vehicle sales.

• Two additional used-vehicle stores were planned for Q4 2021, including Phoenix and a new Charlotte market; 12 additional stores were planned for 2022.

• Priority 1 Automotive Group acquisition was expected to close in Q4 2021, subject to customary conditions and manufacturer approval.