AutoNation 2005 Annual Report Download - page 30

Download and view the complete annual report

Please find page 30 of the 2005 AutoNation annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

Table of Contents
Used Vehicle
Years Ended December 31,
2005 vs. 2004 2004 vs. 2003
Variance Variance
Favorable/ Favorable/
2005 2004 (Unfavorable) % Variance 2003 (Unfavorable) % Variance
($ in millions, except per vehicle data)
Reported:
Retail revenue $ 3,582.6 $ 3,452.1 $ 130.5 3.8 $3,351.3 $ 100.8 3.0
Wholesale revenue 848.0 784.3 63.7 8.1 748.1 36.2 4.8
Total revenue $ 4,430.6 $ 4,236.4 $ 194.2 4.6 $ 4,099.4 $ 137.0 3.3
Retail gross profit $ 425.6 $ 393.8 $ 31.8 8.1 $ 384.1 $ 9.7 2.5
Wholesale gross profit 2.4 1.5 .9 3.2 (1.7)
Total gross profit $ 428.0 $ 395.3 $ 32.7 8.3 $ 387.3 $ 8.0 2.1
Retail vehicle unit sales 235,313 234,598 715 .3 232,512 2,086 .9
Revenue per vehicle retailed $ 15,225 $ 14,715 $ 510 3.5 $ 14,413 $ 302 2.1
Gross profit per vehicle retailed $ 1,809 $ 1,679 $ 130 7.7 $ 1,652 $ 27 1.6
Gross profit as a percentage of
retail revenue 11.9% 11.4% 11.5%
Days supply (trailing 30 days) 43 days 37 days
Same Store:
Retail revenue $ 3,551.1 $ 3,450.9 $ 100.2 2.9
Wholesale revenue 831.9 780.8 51.1 6.5
Total revenue $ 4,383.0 $ 4,231.7 $ 151.3 3.6
Retail gross profit $ 422.7 $ 393.4 $ 29.3 7.4
Wholesale gross profit (.1) (1.2) 1.1
Total gross profit $ 422.6 $ 392.2 $ 30.4 7.8
Retail vehicle unit sales 233,887 234,486 (599) (.3)
Revenue per vehicle retailed $ 15,183 $ 14,717 $ 466 3.2
Gross profit per vehicle retailed $ 1,807 $ 1,678 $ 129 7.7
Gross profit as a percentage of
retail revenue 11.9% 11.4%
Reported used vehicle performance benefited from the impact of acquisitions and divestitures when compared to same store performance.
Same store used vehicle revenue for 2005 increased compared to 2004 due to an increase in same store average revenue per vehicle
retailed partially offset by a slight decrease in same store unit volume. The increase in same store average revenue per unit is the result of
strengthened used vehicle market prices and the availability of quality used vehicles from trade-ins. Consistent with the new vehicle unit
volume decline, used vehicle unit volume was impacted by lower same store sales unit volumes resulting from a challenging United States’
auto retail environment and the effects of Hurricane Wilma on our Florida stores during the fourth quarter of 2005. Same store gross profit
and same store gross profit as a percentage of revenue increased as a result of better inventory management focused on optimizing used
vehicle inventory supply, mix and pricing.
Used vehicle revenue for 2004 increased compared to 2003 as a result of increases in average revenue per unit and volume. The
increase in used vehicle unit volume is attributable to the impact of acquisitions in 2004 partially offset by same store unit volume declines in
part due to strong manufacturer incentives for new vehicles and the effect of the four major hurricanes on our stores in Florida and the
Southeast during the third quarter of 2004. During the fourth quarter of 2004, we saw improvements in these markets driven by post-
hurricane demand and a stronger local economy. Gross profit for 2004 compared to 2003 increased due to acquisitions. Gross profit as a
percentage of revenue for 2004 increased as a result of an improved inventory mix and a strengthening used vehicle market toward the end
of 2004.
Used vehicle inventories were at $329.3 million or 43 days supply at December 31, 2005 compared to $290.2 million or 37 days in
2004.
28