AutoNation Net Jumps After Gross Margin on New Vehicle Doubles to $6,112
- Scott Peters
- U.S.A. New York City
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AutoNation sales were impacted by lower new sales and higher used vehicle sales in the quarter. Net income more than doubled after gross margins on new vehicles doubled.
AutoNation said first quarter 2022 revenues increased 14% to $6.8 billion, net income surged 51% to $362.1 million, and earnings per share increased 103% to $5.78 from $2.85 a year ago.
New vehicle unit sales in the quarter declined 19% to 56,442 and used vehicle sales rose 11% to 79,763.
Used vehicles sales in the quarter rose 47% from a year ago but new vehicle sales declined 6% from a year ago. New vehicle gross profit more than doubled to $6,112 from $3,373 a year ago and used vehicle gross profit declined 10% in the same period to $1,566.
During the quarter, the auto retailer repurchased 3.5 million shares for $381 million and repurchased a total of 4.8 million shares for $581 million in the year-to-date as of April 19, 2022.
As previously announced, the Company entered two new markets in the quarter, with AutoNation USA Charlotte in North Carolina and AutoNation USA Charleston in South Carolina. Each AutoNation USA store has exceeded expectations and is profitable.
The Company plans to open 12 additional new stores over the next 12 months. AutoNation's target is to have over 130 AutoNation USA stores in operation from coast-to-coast by the end of 2026. These stores will continue to leverage the AutoNation brand, scale, and proven Customer-centric processes to capture a larger share of the used vehicle market.
As of March 31, 2022, AutoNation had $2.4 billion of liquidity, including $608 million in cash and approximately $1.8 billion of availability under our revolving credit facility. The Company's covenant leverage ratio was 1.5x at quarter-end, or 1.3x net of cash, and used floorplan availability. AutoNation had approximately $3.5 billion of non-vehicle debt outstanding as of March 31, 2022.
Annual Returns
| Company | Ticker | 2025 | 2024 | 2023 |
|---|---|---|---|---|
| AutoNation Inc | AN | -2% | 14% | 28% |