07/21/2021 | Press release | Distributed by Public on 07/21/2021 07:06
Three months ended June 30, | % | Six months ended June 30, | % | |||||||||
Increase | Increase | |||||||||||
2021 | 2020 | (Decrease) | 2021 | 2020 | (Decrease) | |||||||
Revenues: | ||||||||||||
New vehicle retail | $ | 3,146.2 | $ | 1,367.8 | 130.0 | % | $ | 5,339.5 | $ | 2,741.3 | 94.8 | % |
Used vehicle retail | 1,804.9 | 922.2 | 95.7 | 3,157.0 | 1,796.5 | 75.7 | ||||||
Used vehicle wholesale | 217.4 | 51.3 | 323.8 | 352.6 | 118.0 | 198.8 | ||||||
Finance and insurance | 269.6 | 124.9 | 115.9 | 467.9 | 246.7 | 89.7 | ||||||
Service, body and parts | 521.0 | 275.5 | 89.1 | 925.0 | 605.4 | 52.8 | ||||||
Fleet and other | 50.3 | 16.9 | 197.6 | 110.4 | 54.4 | 102.9 | ||||||
Total revenues
|
6,009.4 | 2,758.6 | 117.8 | % | 10,352.4 | 5,562.3 | 86.1 | % | ||||
Cost of sales: | ||||||||||||
New vehicle retail | 2,832.5 | 1,275.6 | 122.1 | 4,869.0 | 2,570.9 | 89.4 | ||||||
Used vehicle retail | 1,572.3 | 823.9 | 90.8 | 2,788.3 | 1,608.3 | 73.4 | ||||||
Used vehicle wholesale | 201.0 | 49.2 | 308.5 | 331.6 | 115.3 | 187.6 | ||||||
Service, body and parts | 242.9 | 131.1 | 85.3 | 428.6 | 292.8 | 46.4 | ||||||
Fleet and other | 50.1 | 14.4 | 247.9 | 108.8 | 49.7 | 118.9 | ||||||
Total cost of sales
|
4,898.8 | 2,294.2 | 113.5 | 8,526.3 | 4,637.0 | 83.9 | ||||||
Gross profit | 1,110.6 | 464.4 | 139.1 | % | 1,826.1 | 925.3 | 97.4 | % | ||||
Asset impairments | - | 7.9 | NM | - | 7.9 | NM | ||||||
SG&A expense | 634.0 | 304.5 | 108.2 | 1,084.2 | 650.5 | 66.7 | ||||||
Depreciation and amortization | 30.3 | 22.3 | 35.9 | 57.2 | 44.3 | 29.1 | ||||||
Income from operations | 446.3 | 129.7 | 244.1 | % | 684.7 | 222.6 | 207.6 | % | ||||
Floor plan interest expense | (6.4) | (8.1) | (21.0) | (13.3) | (22.1) | (39.8) | ||||||
Other interest expense | (28.1) | (16.8) | 67.3 | (51.6) | (33.8) | 52.7 | ||||||
Other income, net | 7.6 | 3.5 | NM | 11.1 | 5.8 | NM | ||||||
Income before income taxes | 419.4 | 108.3 | 287.3 | % | 630.9 | 172.5 | 265.7 | % | ||||
Income tax expense | (114.5) | (30.6) | 274.2 | (169.8) | (48.6) | 249.4 | ||||||
Income tax rate | 27.3 | % | 28.3 | % | 26.9 | % | 28.2 | % | ||||
Net income | $ | 304.9 | $ | 77.7 | 292.4 | % | $ | 461.1 | $ | 123.9 | 272.2 | % |
Diluted net income per share: | ||||||||||||
Net income per share | $ | 10.75 | $ | 3.38 | 218.0 | % | $ | 16.69 | $ | 5.32 | 213.7 | % |
Diluted shares outstanding | 28.4 | 23.0 | 23.5 | % | 27.6 | 23.3 | 18.5 | % |
Three months ended June 30, | % | Six months ended June 30, | % | |||||||||
Increase | Increase | |||||||||||
2021 | 2020 | (Decrease) | 2021 | 2020 | (Decrease) | |||||||
Gross margin | ||||||||||||
New vehicle retail | 10.0 | % | 6.7 | % | 330 | bps | 8.8 | % | 6.2 | % | 260 | bps |
Used vehicle retail | 12.9 | 10.7 | 220 | 11.7 | 10.5 | 120 | ||||||
Finance and insurance | 100.0 | 100.0 | - | 100.0 | 100.0 | - | ||||||
Service, body and parts | 53.4 | 52.4 | 100 | 53.7 | 51.6 | 210 | ||||||
Gross profit margin | 18.5 | 16.8 | 170 | 17.6 | 16.6 | 100 | ||||||
Unit sales | ||||||||||||
New vehicle retail | 75,176 | 34,869 | 115.6 | % | 129,040 | 70,776 | 82.3 | % | ||||
Used vehicle retail | 70,254 | 43,505 | 61.5 | 129,281 | 86,136 | 50.1 | ||||||
Total retail units sold | 145,430 | 78,374 | 85.6 | 258,321 | 156,912 | 64.6 | ||||||
Average selling price | ||||||||||||
New vehicle retail | $ | 41,852 | $ | 39,226 | 6.7 | % | $ | 41,379 | $ | 38,732 | 6.8 | % |
Used vehicle retail | 25,691 | 21,196 | 21.2 | 24,420 | 20,857 | 17.1 | ||||||
Average gross profit per unit | ||||||||||||
New vehicle retail | $ | 4,173 | $ | 2,643 | 57.9 | % | $ | 3,646 | $ | 2,407 | 51.5 | % |
Used vehicle retail | 3,311 | 2,259 | 46.6 | 2,852 | 2,185 | 30.5 | ||||||
Finance and insurance | 1,854 | 1,593 | 16.4 | 1,811 | 1,572 | 15.2 | ||||||
Total vehicle(1)
|
5,723 | 4,050 | 41.3 | 5,141 | 3,875 | 32.7 | ||||||
Revenue mix | ||||||||||||
New vehicle retail | 52.4 | % | 49.6 | % | 51.6 | % | 49.3 | % | ||||
Used vehicle retail | 30.0 | 33.4 | 30.5 | 32.3 | ||||||||
Used vehicle wholesale | 3.6 | 1.9 | 3.4 | 2.1 | ||||||||
Finance and insurance, net | 4.5 | 4.5 | 4.5 | 4.4 | ||||||||
Service, body and parts | 8.7 | 10.0 | 8.9 | 10.9 | ||||||||
Fleet and other | 0.8 | 0.6 | 1.1 | 1.0 | ||||||||
Gross Profit Mix | ||||||||||||
New vehicle retail | 28.2 | % | 19.8 | % | 25.8 | % | 18.4 | % | ||||
Used vehicle retail | 20.9 | 21.2 | 20.2 | 20.3 | ||||||||
Used vehicle wholesale | 1.5 | 0.5 | 1.2 | 0.3 | ||||||||
Finance and insurance, net | 24.3 | 26.9 | 25.6 | 26.7 | ||||||||
Service, body and parts | 25.1 | 31.0 | 27.1 | 33.8 | ||||||||
Fleet and other | - | 0.6 | 0.1 | 0.5 |
Adjusted | As reported | Adjusted | As reported | |||||||||||||
Three months ended June 30, | Three months ended June 30, | Six months ended June 30, | Six months ended June 30, | |||||||||||||
Other metrics | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||
SG&A as a % of revenue | 10.3 | % | 10.9 | % | 10.5 | % | 11.0 | % | 10.3 | % | 11.6 | % | 10.5 | % | 11.7 | % |
SG&A as a % of gross profit | 55.7 | 64.7 | 57.1 | 65.6 | 58.4 | 69.7 | 59.4 | 70.3 | ||||||||
Operating profit as a % of revenue | 7.7 | 5.1 | 7.4 | 4.7 | 6.8 | 4.2 | 6.6 | 4.0 | ||||||||
Operating profit as a % of gross profit | 41.6 | 30.5 | 40.2 | 27.9 | 38.5 | 25.5 | 37.5 | 24.1 | ||||||||
Pretax margin | 7.2 | 4.4 | 7.0 | 3.9 | 6.3 | 3.3 | 6.1 | 3.1 | ||||||||
Net profit margin | 5.2 | 3.1 | 5.1 | 2.8 | 4.6 | 2.4 | 4.5 | 2.2 |
Three months ended June 30, | % | Six months ended June 30, | % | |||||||||
Increase | Increase | |||||||||||
2021 | 2020 | (Decrease) | 2021 | 2020 | (Decrease) | |||||||
Revenues | ||||||||||||
New vehicle retail | $ | 2,078.1 | $ | 1,338.8 | 55.2 | % | $ | 3,801.6 | $ | 2,671.9 | 42.3 | % |
Used vehicle retail | 1,342.7 | 902.1 | 48.8 | 2,462.2 | 1,751.5 | 40.6 | ||||||
Finance and insurance | 183.6 | 122.4 | 50.0 | 337.2 | 241.2 | 39.8 | ||||||
Service, body and parts | 352.3 | 269.9 | 30.5 | 668.3 | 589.1 | 13.4 | ||||||
Total revenues | 4,128.1 | 2,700.2 | 52.9 | 7,596.7 | 5,421.9 | 40.1 | ||||||
Gross profit | ||||||||||||
New vehicle retail | $ | 209.8 | $ | 90.2 | 132.6 | % | $ | 336.5 | $ | 166.4 | 102.2 | % |
Used vehicle retail | 180.4 | 97.1 | 85.8 | 300.2 | 185.5 | 61.8 | ||||||
Finance and insurance | 183.6 | 122.4 | 50.0 | 337.2 | 241.2 | 39.8 | ||||||
Service, body and parts | 193.3 | 141.5 | 36.6 | 362.2 | 304.3 | 19.0 | ||||||
Total gross profit | 777.1 | 455.8 | 70.5 | 1,350.8 | 904.9 | 49.3 | ||||||
Gross margin | ||||||||||||
New vehicle retail | 10.1 | % | 6.7 | % | 340 | bps | 8.9 | % | 6.2 | % | 270 | bps |
Used vehicle retail | 13.4 | 10.8 | 260 | 12.2 | 10.6 | 160 | ||||||
Finance and insurance | 100.0 | 100.0 | - | 100.0 | 100.0 | - | ||||||
Service, body and parts | 54.9 | 52.4 | 250 | 54.2 | 51.7 | 250 | ||||||
Gross profit margin | 18.8 | 16.9 | 190 | 17.8 | 16.7 | 110 | ||||||
Unit sales | ||||||||||||
New vehicle retail | 49,181 | 34,069 | 44.4 | % | 91,592 | 68,870 | 33.0 | % | ||||
Used vehicle retail | 51,806 | 42,495 | 21.9 | 101,075 | 83,823 | 20.6 | ||||||
Average selling price | ||||||||||||
New vehicle retail | $ | 42,255 | $ | 39,296 | 7.5 | % | $ | 41,506 | $ | 38,797 | 7.0 | % |
Used vehicle retail | 25,918 | 21,228 | 22.1 | 24,360 | 20,895 | 16.6 | ||||||
Average gross profit per unit | ||||||||||||
New vehicle retail | $ | 4,266 | $ | 2,646 | 61.2 | % | $ | 3,674 | $ | 2,416 | 52.1 | % |
Used vehicle retail | 3,483 | 2,285 | 52.4 | 2,970 | 2,212 | 34.3 | ||||||
Finance and insurance | 1,818 | 1,599 | 13.7 | 1,750 | 1,579 | 10.8 | ||||||
Total vehicle(1)
|
5,778 | 4,072 | 41.9 | 5,121 | 3,903 | 31.2 |
As of | |||
June 30, | December 31, | June 30, | |
2021 | 2020 | 2020 | |
Days Supply(1)
|
|||
New vehicle inventory | 23 | 50 | 61 |
Used vehicle inventory | 58 | 65 | 47 |
Financial covenants | ||
Requirement | As of June 30, 2021 | |
Current ratio | Not less than 1.10 to 1 | 1.68 to 1 |
Fixed charge coverage ratio | Not less than 1.20 to 1 | 6.82 to 1 |
Leverage ratio | Not more than 5.75 to 1 | 1.95 to 1 |
June 30, 2021 | December 31, 2020 | |||
Cash and cash equivalents | $ | 780.9 | $ | 160.2 |
Trade receivables, net | 799.7 | 614.0 | ||
Inventories, net | 2,238.8 | 2,492.9 | ||
Other current assets | 51.4 | 70.5 | ||
Total current assets | $ | 3,870.8 | $ | 3,337.6 |
Property and equipment, net | 2,299.3 | 2,197.5 | ||
Intangibles | 987.0 | 943.2 | ||
Other non-current assets | 2,935.4 | 1,423.8 | ||
Total assets | $ | 10,092.5 | $ | 7,902.1 |
Floor plan notes payable | 1,252.0 | 1,797.2 | ||
Other current liabilities | 1,343.8 | 682.5 | ||
Total current liabilities | $ | 2,595.8 | $ | 2,479.7 |
Long-term debt | 2,521.9 | 2,064.7 | ||
Other long-term liabilities and deferred revenue | 746.4 | 696.2 | ||
Total liabilities | $ | 5,864.1 | $ | 5,240.6 |
Stockholder's Equity | 4,228.4 | 2,661.5 | ||
Total liabilities & stockholders' equity | $ | 10,092.5 | $ | 7,902.1 |
Six months ended June 30, | ||||
2021 | 2020 | |||
Net income | $ | 461.1 | $ | 123.9 |
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||
Asset impairments | - | 7.9 | ||
Depreciation and amortization | 57.1 | 44.3 | ||
Stock-based compensation | 17.2 | 10.1 | ||
Loss on disposal of assets | 0.1 | (0.3) | ||
Loss (gain) on sale of franchises | 5.2 | (1.4) | ||
Unrealized investment loss | (0.9) | - | ||
Deferred income taxes | 31.8 | (4.9) | ||
Amortization of operating lease right-of-use assets | 16.5 | 13.5 | ||
(Increase) decrease: | ||||
Trade receivables, net
|
(185.0) | 53.8 | ||
Inventories
|
663.1 | 624.7 | ||
Other assets
|
(103.0) | (14.8) | ||
Increase (decrease): | ||||
Floor plan notes payable, net
|
47.0 | (130.7) | ||
Trade payables
|
97.4 | 0.3 | ||
Accrued liabilities
|
144.3 | 55.4 | ||
Other long-term liabilities and deferred revenue
|
11.6 | 8.2 | ||
Net cash provided by operating activities | $ | 1,263.5 | $ | 790.0 |
Six months ended June 30, | ||||
Net cash provided by operating activities | 2021 | 2020 | ||
As reported | $ | 1,263.5 | $ | 790.0 |
Floor plan notes payable, non-trade, net
|
(571.6) | (456.8) | ||
Less: Borrowings on floor plan notes payable, non-trade associated with acquired new vehicle inventory
|
(271.5) | (22.3) | ||
Adjusted | $ | 420.4 | $ | 310.9 |
Three Months Ended June 30, 2021 | ||||||||||||
As reported | Net disposal loss on sale of stores | Investment gain | Insurance reserves | Acquisition expenses | Adjusted | |||||||
Selling, general and administrative | $ | 634.0 | $ | (4.5) | $ | - | $ | (0.8) | $ | (10.4) | $ | 618.3 |
Operating income | 446.3 | 4.5 | - | 0.8 | 10.4 | 462.0 | ||||||
Other income (expense), net | 7.6 | - | (1.2) | - | - | 6.4 | ||||||
Income before income taxes | 419.4 | 4.5 | (1.2) | 0.8 | 10.4 | 433.9 | ||||||
Income tax (provision) benefit | (114.5) | (1.2) | 0.3 | (0.2) | (2.8) | (118.4) | ||||||
Net income | $ | 304.9 | $ | 3.3 | $ | (0.9) | $ | 0.6 | $ | 7.6 | $ | 315.5 |
Diluted earnings per share | $ | 10.75 | $ | 0.12 | $ | (0.03) | $ | 0.02 | $ | 0.26 | $ | 11.12 |
Diluted share count | 28.4 |
Three Months Ended June 30, 2020 | ||||||||||||||
As reported | Net disposal gain on sale of stores | Asset impairment | Insurance reserves | Acquisition expenses | Tax attribute | Adjusted | ||||||||
Asset impairments | $ | 7.9 | $ | - | $ | (7.9) | $ | - | $ | - | $ | - | $ | - |
Selling, general and administrative | 304.5 | 1.3 | - | (5.0) | (0.5) | - | 300.3 | |||||||
Operating income | 129.7 | (1.3) | 7.9 | 5.0 | 0.5 | - | 141.8 | |||||||
Income before income taxes | 108.3 | (1.3) | 7.9 | 5.0 | 0.5 | - | 120.4 | |||||||
Income tax (provision) benefit | (30.6) | 0.4 | (2.3) | (1.4) | (0.2) | (0.8) | (34.9) | |||||||
Net income | $ | 77.7 | $ | (0.9) | $ | 5.6 | $ | 3.6 | $ | 0.3 | $ | (0.8) | $ | 85.5 |
Diluted earnings per share | $ | 3.38 | $ | (0.04) | $ | 0.24 | $ | 0.16 | $ | 0.01 | $ | (0.03) | $ | 3.72 |
Diluted share count | 23.0 |
Six Months Ended June 30, 2021 | ||||||||||||
As reported | Net disposal loss on sale of stores | Investment gain | Insurance reserves | Acquisition expenses | Adjusted | |||||||
Selling, general and administrative | $ | 1,084.2 | $ | (5.2) | $ | - | $ | (1.6) | $ | (11.6) | $ | 1,065.8 |
Operating income | 684.7 | 5.2 | - | 1.6 | 11.6 | 703.1 | ||||||
Other income (expense), net | 11.1 | - | (1.0) | - | - | 10.1 | ||||||
Income before income taxes | 630.9 | 5.2 | (1.0) | 1.6 | 11.6 | 648.3 | ||||||
Income tax (provision) benefit | (169.8) | (1.4) | 0.3 | (0.4) | (3.1) | (174.4) | ||||||
Net income | $ | 461.1 | $ | 3.8 | $ | (0.7) | $ | 1.2 | $ | 8.5 | $ | 473.9 |
Diluted earnings per share | $ | 16.69 | $ | 0.14 | $ | (0.03) | $ | 0.04 | $ | 0.31 | $ | 17.15 |
Diluted share count | 27.6 |
Six Months Ended June 30, 2020 | ||||||||||||||
As reported | Net disposal gain on sale of stores | Asset impairment | Insurance reserves | Acquisition expenses | Tax attribute | Adjusted | ||||||||
Asset impairments | $ | 7.9 | $ | - | $ | (7.9) | $ | - | $ | - | $ | - | $ | - |
Selling, general and administrative | $ | 650.5 | $ | 1.4 | $ | - | $ | (5.8) | $ | (1.0) | $ | - | $ | 645.1 |
Operating income | 222.6 | (1.4) | 7.9 | 5.8 | 1.0 | - | 235.9 | |||||||
Income before income taxes | 172.5 | (1.4) | 7.9 | 5.8 | 1.0 | - | 185.8 | |||||||
Income tax (provision) benefit | (48.6) | 0.4 | (2.3) | (1.6) | (0.3) | (0.8) | (53.2) | |||||||
Net income | $ | 123.9 | $ | (1.0) | $ | 5.6 | $ | 4.2 | $ | 0.7 | $ | (0.8) | $ | 132.6 |
Diluted earnings per share | $ | 5.32 | $ | (0.04) | $ | 0.24 | $ | 0.18 | $ | 0.03 | $ | (0.03) | $ | 5.70 |
Diluted share count | 23.3 |
Three months ended June 30, | % | Six months ended June 30, | % | |||||||||
Increase | Increase | |||||||||||
2021 | 2020 | (Decrease) | 2021 | 2020 | (Decrease) | |||||||
EBITDA and Adjusted EBITDA | ||||||||||||
Net income | $ | 304.9 | $ | 77.7 | 292.4 | % | $ | 461.1 | $ | 123.9 | 272.2 | % |
Flooring interest expense | 6.4 | 8.1 | (21.0) | 13.3 | 22.1 | (39.8) | ||||||
Other interest expense | 28.1 | 16.8 | 67.3 | 51.6 | 33.8 | 52.7 | ||||||
Income tax expense | 114.5 | 30.6 | 274.2 | 169.8 | 48.6 | 249.4 | ||||||
Depreciation and amortization | 30.3 | 22.3 | 35.9 | 57.2 | 44.3 | 29.1 | ||||||
EBITDA | $ | 484.2 | $ | 155.5 | 211.4 | % | $ | 753.0 | $ | 272.7 | 176.1 | % |
Other adjustments: | ||||||||||||
Less: flooring interest expense | $ | (6.4) | $ | (8.1) | (21.0) | $ | (13.3) | $ | (22.1) | (39.8) | ||
Less: used vehicle line of credit interest | - | (0.1) | (100.0) | - | (0.3) | (100.0) | ||||||
Add: acquisition expenses | 10.4 | 0.5 | 1,980.0 | 11.6 | 1.0 | 1,060.0 | ||||||
Add: loss (gain) on divestitures | 4.5 | (1.3) | (446.2) | 5.2 | (1.4) | NM | ||||||
Less: investment gain | (1.2) | - | NM | (1.0) | - | NM | ||||||
Add: insurance reserves | 0.8 | 5.0 | (84.0) | 1.6 | 5.8 | (72.4) | ||||||
Add: asset impairment | - | 7.9 | (100.0) | - | 7.9 | NM | ||||||
Adjusted EBITDA | $ | 492.3 | $ | 159.4 | 208.8 | % | $ | 757.1 | $ | 263.6 | 187.2 | % |
As of | % | |||||
June 30, | Increase | |||||
Net Debt to Adjusted EBITDA | 2021 | 2020 | (Decrease) | |||
Floor plan notes payable: non-trade | $ | 966.9 | $ | 1,168.6 | (17.3) | % |
Floor plan notes payable | 285.1 | 292.0 | (2.4) | |||
Used and service loaner vehicle inventory financing facility | - | 40.0 | (100.0) | |||
Revolving lines of credit | 200.0 | - | NM | |||
Real estate mortgages | 612.8 | 636.9 | (3.8) | |||
Finance lease obligations | 170.2 | 45.3 | 275.7 | |||
5.250% Senior notes due 2025 | 300.0 | 300.0 | - | |||
4.625% Senior notes due 2027 | 400.0 | 400.0 | - | |||
4.375% Senior notes due 2031 | 550.0 | - | NM | |||
3.875% Senior notes due 2029 | 800.0 | - | NM | |||
Other debt | 2.2 | 2.7 | (18.5) | |||
Unamortized debt issuance costs | (27.2) | (10.4) | 161.5 | |||
Total debt | $ | 4,260.0 | $ | 2,875.1 | 48.2 | % |
Less: Floor plan related debt | $ | (1,252.0) | $ | (1,500.6) | (16.6) | % |
Less: Cash and cash equivalents | (780.9) | (120.3) | 549.1 | |||
Less: Availability on used vehicle and service loaner financing facilities | (653.4) | (281.9) | 131.8 | |||
Net Debt | $ | 1,573.7 | $ | 972.3 | 61.9 | % |
TTM Adjusted EBITDA | $ | 1,263.5 | $ | 539.7 | 134.1 | % |
Net debt to Adjusted EBITDA | 1.25 | x | 1.80 | x |