AutoNation(AN) - 2025 Q1 - Quarterly Results

Financial Performance - AutoNation reported Q1 2025 revenue of $6.7 billion, a 4% increase year-over-year on a same-store basis[2]. - Total revenue for Q1 2025 was$ 6,690.4 million, a 3.2% increase from $6,485.7 million in Q1 2024[21]. - Total revenue for Q1 2025 was$ 6,655.0 million, up from $6,380.8 million in Q1 2024, marking a 4.3% increase[38]. - New vehicle revenue reached$ 3.2 billion, up $300 million or 10% compared to the previous year[10]. - New vehicle revenue increased by 9.0% to$ 3,248.1 million, while used vehicle revenue decreased by 3.7% to $1,922.4 million[24]. - New vehicle revenue increased by 10.2% to$ 3,247.6 million in Q1 2025 from $2,947.4 million in Q1 2024[38]. - Net income decreased to$ 175.5 million, compared to $190.1 million in the same quarter last year, resulting in diluted earnings per share of$ 4.45[21]. - EPS for the quarter was $4.45, down 1% from$ 4.49 a year ago, while adjusted EPS increased by 4% to $4.68[6]. Sales Performance - Same-store new vehicle retail unit sales increased by 7% to 62,379 units, while used vehicle retail unit sales decreased by 2% to 66,787 units[5]. - Retail new vehicle unit sales increased by 6.0% to 62,387 units, while retail used vehicle unit sales decreased by 1.6% to 68,000 units[27]. - Retail vehicle unit sales for new vehicles rose to 62,379 in Q1 2025, an increase of 7.1% from 58,227 in Q1 2024[38]. Profitability - Record After-Sales gross profit of$ 568 million, reflecting a 4% increase year-over-year[6]. - Gross profit rose to $1,219.9 million, reflecting a 1.8% increase compared to$ 1,197.9 million in the previous year[24]. - Total gross profit increased to $1,213.6 million in Q1 2025 from$ 1,179.0 million in Q1 2024, a growth of 2.9%[38]. - The gross profit per new vehicle retailed decreased by 15.8% to $2,803, while the gross profit per used vehicle retailed increased by 12.8% to$ 1,662[24]. - Gross profit from new vehicles declined to 5.4% in Q1 2025 compared to 6.6% in Q1 2024[39]. - Gross profit from used vehicle retail increased to 6.3% in Q1 2025 from 5.6% in Q1 2024[39]. - Total gross profit as a percentage of revenue slightly decreased to 18.2% in Q1 2025 from 18.5% in Q1 2024[39]. Expenses and Costs - SG&A as a percentage of gross profit increased to 67.4%, up from 65.6% in the prior year[10]. - The company reported a decrease in selling, general, and administrative expenses to $821.9 million, down from$ 793.1 million[24]. - Capital expenditures decreased to $75.2 million in Q1 2025 from$ 93.7 million in Q1 2024[30]. Liquidity and Capital Management - AutoNation's liquidity as of March 31, 2025, was $1.6 billion, including$ 71 million in cash[11]. - The company repurchased 1.4 million shares for $225 million at an average price of approximately$ 165 per share[9]. - Stock repurchases surged to $224.8 million in Q1 2025, significantly higher than$ 38.7 million in Q1 2024, with shares repurchased increasing from 0.2 million to 1.4 million[30]. - The leverage ratio stood at 2.56x, well below the covenant limit of 3.75x, indicating strong financial health[30]. Segment Performance - The finance and insurance segment reported a net revenue increase of 5.3% to $352.5 million[24]. - Interest and fee income increased to$ 41.9 million in Q1 2025 from $21.8 million in Q1 2024, a variance of$ 20.1 million[28]. - Total interest margin after provision for loan losses rose to $9.1 million in Q1 2025, compared to$ 4.6 million in Q1 2024, reflecting an increase of $4.5 million[28]. Revenue Mix - New vehicle revenue mix increased to 48.8% in Q1 2025 from 46.2% in Q1 2024[39]. - Used vehicle revenue mix decreased to 28.5% in Q1 2025 from 30.8% in Q1 2024[39]. - Parts and service revenue mix remained consistent at 17.4% in Q1 2025 compared to 17.8% in Q1 2024[39].