AutoNation 2003 Annual Report Download - page 28

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Table of Contents
Used Vehicle
Years Ended December 31,
2003 vs. 2002 2002 vs. 2001
Variance Variance
Favorable/ Favorable/
($ in millions, 2003 2002 (Unfavorable) % Variance 2001 (Unfavorable) % Variance
except per vehicle data)
Reported:
Retail revenue $3,706.0 $3,786.6 $(80.6) (2.1) $3,883.2 $(96.6) (2.5)
Wholesale revenue 786.3 923.2 (136.9) (14.8) 1,114.0 (190.8) (17.1)
Total revenue $4,492.3 $4,709.8 $(217.5) (4.6) $4,997.2 $(287.4) (5.8)
Retail gross profit $401.1 $403.0 $(1.9) (.5) $426.5 $(23.5) (5.5)
Wholesale gross profit 2.0 (8.3) 10.3 (8.5) .2
Total gross profit $403.1 $394.7 $8.4 2.1 $418.0 $(23.3) (5.6)
Retail vehicle unit sales 244,926 247,365 (2,439) (1.0) 258,523 (11,158) (4.3)
Revenue per vehicle
retailed $15,131 $15,308 $(177) (1.2) $15,021 $287 1.9
Gross profit per vehicle
retailed $1,638 $1,629 $ 9 .6 $1,650 $(21) (1.3)
Days supply (trailing
30 days) 41 days 40 days
Same Store:
Revenue $4,357.5 $4,615.7 $(258.2) (5.6)
Gross profit $390.5 $387.1 $3.4 .9
Retail vehicle unit sales 239,750 242,288 (2,538) (1.0)
Revenue per vehicle
retailed $15,136 $15,361 $(225) (1.5)
Gross profit per vehicle
retailed $1,643 $1,641 $ 2 .1
Years Ended December 31,
% 2003 % 2002 % 2001
Reported:
Revenue mix percentage 23.2 24.2 25.0
Gross profit as a percentage of revenue 10.8 10.6 11.0
Same Store:
Revenue mix percentage 23.0 24.1
Gross profit as a percentage of revenue 10.9 10.7
Used vehicle total revenue for 2003 decreased as a result of a decrease in wholesale revenue and lower used vehicle retail volume and
revenue per vehicle retailed. Wholesale revenue decreased in 2003 compared to 2002 as a result of fewer trade-ins due to decreased new
vehicle volume and improved management of our used vehicle inventory. The revenue per vehicle retailed decrease reflects lower prices as a
function of our shift in inventory to lower cost units, which is part of our used vehicle market strategy due to the highly competitive new
vehicle market. The decrease in used vehicle revenue in 2002 compared to 2001 was primarily the result of a decrease in volume, which
was in large part caused by continued strong manufacturer incentives and zero percent financing for new vehicles as well as a more
restrictive financing environment for used vehicles. The decrease in used vehicle revenue was also caused by a decrease in the number of
units wholesaled in 2002 due to an overall decline in new and used vehicle sales.
Used vehicle total gross profit increased slightly in 2003 primarily due to increased wholesale gross profit. Used vehicle gross profit
related to wholesale was positively impacted by our used vehicle market strategy resulting in fewer vehicles being wholesaled. In 2004, we
are continuing to focus on comprehensive training of used vehicle personnel as well as implementing across all of our stores a web-based
used vehicle inventory tool that enables our stores within each of our markets to communicate with each other to optimize their used vehicle
inventory supply, mix and pricing. The decrease in used vehicle gross profit in 2002 compared to 2001 was the result of pricing pressures
from manufacturer new vehicle incentives and an oversupply of used vehicles in the marketplace.
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