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Jun 30, 2020
AutoNation Q2 2020 Earnings Report
AutoNation reported Q2 2020 earnings, achieving an all-time record quarterly adjusted EPS from continuing operations.
Key Takeaways
AutoNation reported a net income from continuing operations of $280 million, or $3.18 per share, for the second quarter of 2020. This includes a non-cash unrealized gain related to their investment in Vroom of $161 million after-tax, or $1.82 per share. Adjusted EPS from continuing operations was an all-time record $1.41, an increase of 18% compared to adjusted EPS from continuing operations of $1.20 in the prior year.
EPS from continuing operations was $3.18 compared to $1.12 in the prior year, including a $161 million after-tax non-cash unrealized gain from Vroom investment.
Adjusted EPS from continuing operations reached a record $1.41, up 18% from $1.20 in the prior year.
Same-store Total Variable vehicle gross profit per vehicle retailed increased by $585, or 16%, compared to the previous year.
Adjusted SG&A as a percentage of gross profit was 68.2%, a decrease of 330 basis points compared to the prior year.
AutoNation
AutoNation
AutoNation Revenue by Segment
Revenue by Segment
New Vehicle Revenue
CapyFin.comUsed Vehicle Revenue
CapyFin.comParts & Service Revenue
CapyFin.comFinance & Insurance Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
AutoNation announced the planned expansion of its AutoNation USA stand-alone pre-owned vehicle sales and service centers, planning to build at least 20 additional stores over the next three years.
Positive Outlook
- Expansion of AutoNation USA stand-alone pre-owned vehicle sales and service centers.
- Planned construction of at least 20 additional stores over the next three years.
- Leveraging the 'One Price' model and customer-centric selling processes.
- Capitalizing on brand, scale, 'We’ll Buy Your Car' sourcing initiative.
- Utilizing digital capabilities to capture a larger portion of the used vehicle market.
Challenges Ahead
- Uncertainties related to the resolution of the COVID-19 pandemic.
- Potential supply chain disruptions.
- Economic conditions, including changes in interest rates, fuel prices, and tariffs.
- Risks associated with the success and financial viability of vehicle manufacturers.
- Challenges in identifying, acquiring, and building out suitable locations in a timely manner.
Revenue & Expenses
Visualization of income flow from segment revenue to net income