AutoNation Reports Q3 Double-Digit Increase in Used Retail Sales

AutionNation revealed its third-quarter results Thursday, showing some good news for the company’s pre-owned department.
Retail used-vehicle unit sales increased 15 percent overall and 11 percent on a same-store basis during Q3, AutoNation reported.
More specifically, AutoNation retailed 52,659 used units overall during the quarter and has moved 155,280 so far this year (up 12.5 percent.
Overall used vehicle retail revenue came in at $933 million up 15 percent from Q3 of 2012.
Retail used vehicle gross profit was also up, coming in at $80.4 million. This number represents a 7.9-percent jump from Q3 of 2012.
Michael Maroone, president and chief operating officer and director at AutoNation, also touched on used inventory during the the company’s Q3 earnings conference call held Thursday.
"Relative to inventory, both our new and used inventory are in very good shape," Maroone said.
Maroone reported that at the end of the quarter, used-vehicle days supply was at 31 days compared to 29 days a year ago, showing that used inventory supply is steadily improving.
New-vehicle days’ supply was up, as well, coming in at 59 days or 60,000 units compared to 58 days and 51,700 units during the same period of 2012.
AutoNation also revealed it has signed agreements to acquire two new stores: O'Hare Honda and O'Hare Hyundai in Chicago.
This will be AutoNation’s 22nd Honda store and its 6th Hyundai store, numbers which Mike Jackson, chairman and chief executive officer, noted in the company’s conference call.
The annual revenue for these stores is approximately $85 million, with retail sales of approximately 3,100 new and used vehicle units, the company shared.
Subject to manufacturer approval and other customary closing conditions, the acquisition is set to be completed in Q4.
On top of success in used-car sales, the company also reported its fourth consecutive all-time record quarterly earnings per share from continuing operations.
Q3 net income from continuing operations at $93 million, or $0.75 per share, compared to net income from continuing operations of $82 million, or $0.66 per share, for the same period in the prior year. This marks a 14-percent improvement on a per-share basis.
Third quarter revenue also saw a 14 percent jump in Q3, reaching $4.5 billion, compared to $3.9 billion during the year-ago period.
Officials shared that this success was "driven by stronger performance in all of our business sectors – new vehicles, used vehicles, parts and service, and finance and insurance."
"We delivered double-digit growth in EPS and operating income in the third quarter of 2013 compared to the prior year, driven by gross profit growth in all of our business sectors," Jackson said.
Jackson also provided a prediction for the rest of year, noting he expects new-vehicle sales to continue to improve.
"As we look to the rest of 2013, we believe that the improvement in new vehicle sales will continue … AutoNation remains focused on executing our coast-to-coast brand promises and providing a peerless customer experience as we continue to capitalize on the broader auto recovery," Jackson said during the conference call.