AutoNation reported a successful third quarter this morning, with an 8-percent spike in new and used retail vehicles sales along with a 10-percent bump in overall revenue.
The dealer group reported total revenue of $4.9 billion in Q3, a jump of 10 percent compared to the same period of 2013. Company management said revenue was up across all its major business sectors.
Operating income came in at $207 million, up 11 percent from the third quarter of 2013.
And earnings per share from continuing operating hit an all-time record of 90 cents, up 20 percent compared to the year-ago period.
Mike Jackson, chairman and chief executive officer, said, "AutoNation delivered its 16th consecutive quarter of double-digit year-over-year growth in EPS. This quarter we set another record for the highest ever quarterly EPS from continuing operations. As we look to 2015, we expect continued growth in new-vehicle unit sales, with 2015 industry new-vehicle sales above 17 million units."
New- and used-vehicles sales were both up, contributing to a favorable revenue outcome this past quarter.
The company retailed 56,584 used vehicles in Q3, up 7.5 percent from 52,659 sold during the same period of 2013. As of the end of September, the company had retailed 161,376 used vehicles year-to-date.
New sales were also up a bit in Q3. AutoNation sold 83,682 new vehicles last quarter, up from 76,943 sold during Q3 2013.
Looking at used vehicles specifically, the retailer was also making a bit more on these vehicles. Revenue per used vehicle retailed came in at an average of $18,489 in Q3, up from $17,718 during the same period last year. (Revenue per new vehilce retailed was up slightly as well).
Gross profit for the used department contributed to the company’s impressive Q3 results, as well.
Gross profit for used retail sales came in at $91.8 million, up a significant 11.4 percent from $80.4 million last year during Q3. As of the end of September, the company’s used retail gross profit was $273.3 million.
Gross profit per used vehicle retailed came in at $1,620 during Q3, up from $1,528 a year ago.
The company was recently busy in the acquisitions department, as well, coming off such a strong quarter.
In October, the dealer group completed the acquisition of Mercedes-Benz of Bellevue, Barrier Audi, Barrier Porsche, and Barrier Volvo in the Seattle-Bellevue, Washington market.
The annual revenue for these stores is approximately $355 million.
And just today, the company announced that Porsche Cars North America has awarded a new Porsche franchise to AutoNation in Orange County, Calif.
AutoNation expects that the new store will open in 2016 and currently anticipates annual revenue of approximately $100 million once fully operational.
For more insight into AutoNation’s Q3 performance, see the Wednesday edition of Auto Remarketing Today.