AutoNation Inc., the largest new-vehicle retailer in the U.S., said today its third-quarter net income rose 11 percent to $118.5 million from a year earlier, as revenues increased 9.1 percent to $5.35 billion.
Revenues rose across all business lines, climbing by double digits for new-vehicle sales as well as finance and insurance.
Operating income rose 14 percent to a record for any quarter of $235.7 million.
“We are very pleased with our strong year-over-year growth across all areas of our business, as well as our 20th consecutive quarter of double-digit year-over-year growth” in earnings per share from continuing operations, to a record $1.05, CEO Mike Jackson said in a statement.
New-vehicle unit sales rose 7 percent to 89,535. On a same-store basis, new-vehicle unit sales rose 5.1 percent to 87,407, vs. a 6.2 percent increase in total U.S. light-vehicle sales in the quarter.
On a same-store basis, revenues rose 6 percent to $5.18 billion, while net climbed 12 percent to a record $119 million.
AutoNation’s profits increased in all market segments. Segment income, defined as operating income minus floorplan interest costs, increased 23 percent to $94.6 million for AutoNation’s domestic-brand segment, 11 percent to $85.5 million for the company’s import-brand segment, and 1.7 percent to $85.4 million for its premium luxury segment.
AutoNation also said that it had agreed to acquire 12 stores in Texas from the Allen Samuels Auto Group, representing approximately $800 million in annual revenue. The acquisition will mean that Texas will represent about a quarter of AutoNation’s revenue.