AutoNation Inc. (AN) reported net income of $70.3 million or 46 cents per share from continuing operations for the first quarter of 2011, compared with $58.8 million or 34 cents in the year-ago period.
The company also exceeded the Zacks Consensus Estimate of 43 cents.
Total revenues amounted to $3.31 billion, up 16.5% from $2.84 billion last year led by massive improvements in new and used retail vehicle sales. Reported revenues also crossed the Zacks Consensus Estimate of $3.23 billion. Operating income improved as well to $140.0 million from $115.1 million a year ago.
New vehicles added $1.79 billion to total revenues, up 22.6% from last year’s $1.46 billion. The retailer’s new vehicle sales rose 22.8% to 55,710 units, transforming into revenues of $32,043 per vehicle, a marginal decrease from last year’s $32,209. However, the company expects new vehicle sales of 12 million units for full year 2011, given supply constraints from Japan.
Used vehicles added $831.4 million to the quarter’s total revenues, rising 13.6% from $731.6 million in the same period last year. Used vehicles sold were 42,089, generating per vehicle revenues of $17,282, a slight increase from last year’s $17,085.
Revenues in the parts and services business grew 6.0% to $570.0 million, while revenues in the finance and insurance business rose 16.2% to $110.7 million.
Segment Performance
Revenues in the Domestic segment – comprising stores that sell vehicles manufactured by General Motors Company (GM), Ford Motor Co. (F) and Chrysler –improved 20.4% year-over-year to $1.10 billion from $910.6 million. New vehicle sales rose 30.3% to 17,736 vehicles. Segment operating income was $42.9 million versus $32.0 million in the first quarter of 2010.
Revenues in the Import segment – comprising stores that sell vehicles manufactured primarily by Toyota Motor Corp. (TM), Honda Motor Co. Ltd. (HMC) and Nissan Motor Co. Ltd. (NSANY) – expanded 21.1% on a yearly basis to $1.30 billion from $1.07 billion. Unit sales rose to 29,662 vehicles from 23,874 vehicles during the same period in 2010. Segment operating income was $57.5 million versus $50.2 million in the year ago quarter.
Revenues in the Premium Luxury segment – comprising stores that sell vehicles manufactured primarily by Daimler AG’s (DDAIF) Mercedes, and BMW and Lexus – were up 6.7% to $878.4 million from $822.9 million reported during the same period of 2010. Unit sales rose 5.8% to 8,312 vehicles. Segment operating income was $55.2 million, versus $46.8 million in the same quarter of 2010.
Financial Position
AutoNation had cash and cash equivalents worth $84.3 million as of March 31, 2011, declining drastically from $160.6 million as of March 31, 2010. Capital expenditure during the first three months of the current year totaled $24.7 million, compared with $14.0 million during the same period of 2010.
During the quarter, the company repurchased 1.8 million shares of its common stock for $58.8 million at an average purchase price of $32.67, compared with the year-ago purchase of 2.1 million shares at an average purchase price of $17.71.
AUTONATION INC (AN): Free Stock Analysis Report
DAIMLER AG (DDAIF): Free Stock Analysis Report
FORD MOTOR CO (F): Free Stock Analysis Report
HONDA MOTOR (HMC): Free Stock Analysis Report
NISSAN ADR (NSANY): Free Stock Analysis Report
Be the first to comment