AutoNation’s F&I PVR Eclipses $1,300
Ft. Lauderdale, Fla. — AutoNation Inc. reported first-quarter net income rose 13.7 percent from a year ago. Revenue also was up 12 percent from a year ago, driven by strong performance in all of the company’s business sectors, including new and used vehicles, parts and service and F&I.
The nation’s largest auto retailer reported net income of $83 million, up from $74 million from a year ago. First-quarter revenue totaled $4.1 billion vs. $3.7 billion in the year-ago period. New-vehicle unit sales increased 9 percent overall and 6 percent on a same-store basis.
“AutoNation delivered solid double-digit growth in operating income, which drop a 21 percent increase in [earnings per share] from continuing operations in the first quarter of 2013, as we increased profitability in each of our business sectors,” Mike Jackson, the group’s chairman and CEO, stated in a press release. “We continue to expect industry new-vehicle sales to be approximately mid-15 million units in 2013.”
In the first quarter of 2013, the domestic segment income was $59 million, compared to year-ago segment income of $50 million. Import segment income was $71 million vs. $62 million one year ago. Additionally, premium luxury income came in at $69 million, up from last year’s income of $59 million.
The group also reported that F&I gross profit per retail unit increased by $113 from a year ago to $1,323. Revenue from F&I increased 16.4 percent from a year ago to $151.5 million.
Jackson also provided an update on AutoNation’s rebranding strategy. “Our coast-to-coast rebranding rollout is on track, and, as of March 31, 30 percent of our domestic and import units were sold under the rebranded AutoNation name.”
The dealer group also announced that it has signed agreements to acquire SanTan Honda Superstore and Hyundai of Tempe in Phoenix, and Don Davis Toyota Scion in Dallas. The annual revenue for all three stores is approximately $250 million, and together, these stores sold approximately 8,300 new and used retail units in 2012. The acquisitions are subject to manufacturer approval and other customary closing conditions and are expected to be completed in the second quarter of 2013.
“These acquisitions align with our strategy to offer all of our core vehicle brands to consumers within our key markets,” Jackson said. “We are pleased to add Honda and Hyundai franchises to our Phoenix platform. The franchises are in attractive automotive retail locations and facilities, and the acquisitions will enhance our franchise mix in Phoenix. We are also pleased to add a Toyota franchise to our high-performing Dallas-Fort Worth platform.”
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