AUTONATION, INC. AUTONATION, INC.
RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES
($ in millions, except per share data)
The Company may from time to time publicly disclose certain non-GAAP financial measures as defined under SEC rules. As required by SEC rules, the Company has provided reconciliations of these measures to the most directly comparable GAAP measures, which are set forth in the tables below. The Company believes that these non-GAAP financial measures improve the transparency of the Company's disclosure, provide a meaningful presentation of the Company's results excluding the impact of items not related to the Company's ongoing core business operations, and improve the period-to- period comparability of the Company's results from its core business operations. Non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated and presented in accordance with GAAP.
Comparable Basis Reconciliations(1)
Three Months Ended September 30, | ||||||||||||||||||||||||||||
Income from Continuing | ||||||||||||||||||||||||||||
Operations Before | ||||||||||||||||||||||||||||
Operating Income | Income Taxes | Income Tax Provision(2) | Effective Tax Rate | Net Income | Diluted Earnings Per Share(3) | |||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||
From continuing operations, as reported | 419.5 | $ | 522.5 | $ | 327.4 | $ | 473.5 | $ | 83.7 | $ | 120.8 | 25.6% | 25.5% | $ | 243.7 | $ | 352.7 | |||||||||||
Discontinued operations, net of income taxes | - | (0.1) | ||||||||||||||||||||||||||
As reported | 243.7 | 352.6 | $ | 5.54 | $ | 6.31 | ||||||||||||||||||||||
Increase (decrease) in compensation expense related to market valuation | ||||||||||||||||||||||||||||
changes in deferred compensation plans(4) | (3.7) | (4.8) | ||||||||||||||||||||||||||
Net gains on business/property dispositions | - | (16.1) | - | (16.1) | - | (4.0) | - | (12.1) | $ | - | $ | (0.22) | ||||||||||||||||
Legal settlement | - | (6.3) | - | (6.3) | - | (1.4) | - | (4.9) | $ | - | $ | (0.09) | ||||||||||||||||
Adjusted | 415.8 | $ | 495.3 | $ | 327.4 | $ | 451.1 | $ | 83.7 | $ | 115.4 | 25.6% | 25.6% | $ | 243.7 | $ | 335.6 | $ | 5.54 | $ | 6.00 | |||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||||
SG&A as a Percentage of Gross | ||||||||||||||||||||||||||||
SG&A | Profit (%) | |||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
As reported | 819.3 | $ | 763.2 | 63.3 | 58.1 | |||||||||||||||||||||||
Excluding increase (decrease) in compensation expense related to market | ||||||||||||||||||||||||||||
valuation changes in deferred compensation plans | (3.7) | (4.8) | ||||||||||||||||||||||||||
Adjusted | 823.0 | $ | 768.0 | 63.6 | 58.5 | |||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||
Income from Continuing | ||||||||||||||||||||||||||||
Operations Before | ||||||||||||||||||||||||||||
Operating Income | Income Taxes | Income Tax Provision(2) | Effective Tax Rate | Net Income | Diluted Earnings Per Share(3) | |||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||
From continuing operations, as reported | 1,302.0 | $ | 1,599.6 | $ | 1,072.5 | $ | 1,455.8 | $ | 268.5 | $ | 364.5 | 25.0% | 25.0% | $ | 804.0 | $ | 1,091.3 | |||||||||||
Discontinued operations, net of income taxes | 0.9 | (0.3) | ||||||||||||||||||||||||||
As reported | 804.9 | 1,091.0 | $ | 17.65 | $ | 18.52 | ||||||||||||||||||||||
Increase (decrease) in compensation expense related to market valuation | ||||||||||||||||||||||||||||
changes in deferred compensation plans(4) | 6.3 | (25.1) | ||||||||||||||||||||||||||
Losses from hail storms and other natural catastrophes | 16.5 | - | 16.5 | - | 4.1 | - | 12.4 | - | $ | 0.27 | $ | - | ||||||||||||||||
Net gains on business/property dispositions | - | (16.1) | - | (16.1) | - | (4.0) | - | (12.1) | - | $ | (0.21) | |||||||||||||||||
Legal settlement | - | (6.3) | - | (6.3) | - | (1.4) | - | (4.9) | - | $ | (0.08) | |||||||||||||||||
Adjusted | 1,324.8 | $ | 1,552.1 | $ | 1,089.0 | $ | 1,433.4 | $ | 272.6 | $ | 359.1 | 25.0% | 25.1% | $ | 817.3 | $ | 1,074.0 | $ | 17.92 | $ | 18.23 | |||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||
SG&A as a Percentage of Gross | ||||||||||||||||||||||||||||
SG&A | Profit (%) | |||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
As reported | 2,444.9 | $ | 2,259.4 | 62.4 | 56.7 | |||||||||||||||||||||||
Excluding increase (decrease) in compensation expense related to market | ||||||||||||||||||||||||||||
valuation changes in deferred compensation plans | 6.3 | (25.1) | ||||||||||||||||||||||||||
Excluding losses from hail storms and other natural catastrophes | 16.5 | - | ||||||||||||||||||||||||||
Adjusted | 2,422.1 | $ | 2,284.5 | 61.8 | 57.4 |
- Please refer to the "Non-GAAP Financial Measures" section of the Press Release.
- Tax expense is determined based on the amount of additional taxes or tax benefits associated with each individual item.
- Diluted earnings per share amounts are calculated discretely and therefore may not add up to the total due to rounding.
- Increases and decreases in deferred compensation obligations, which are recorded in SG&A, are substantially offset by corresponding gains and losses, respectively, related to changes in the cash surrender value of corporate-owned life insurance ("COLI") for deferred compensation plan participants as a result of changes in market performance of the underlying investments. Gains and losses related to the COLI are recorded in non-operating Other Income (Loss), Net.
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AutoNation Inc. published this content on 25 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2023 14:21:34 UTC.
