AutoNation, Inc. (AN) has posted a profit of $50 million or 29 cents per share (before special items) in the fourth quarter of 2009, which is more than double the $23 million or 13 cents per share (before special items) in the prior-year period.

The largest automotive retailer in the U.S. has also inched past the Zacks Consensus Estimate of 27 cents per share. The company attributed the EPS growth to a lowering of structural costs and debt levels and an efficient management of its inventory.

Consolidated revenue scaled up 8% to $2.8 billion, driven by strong new vehicle unit sales (an increase of 7%). Same-store sales increased 9% to $2.81 billion. In the reported quarter, total U.S. industry new vehicle retail unit sales increased 6%, based on CNW Research data.

Segment Performance

Sales in AutoNation’s Domestic segment — stores that sell vehicles manufactured by General Motors, Ford (F) and Chrysler — advanced 5% to $893 million. Segment operating income improved to $26 million from $16 million in the fourth quarter of 2008.

Sales in the Import segment — stores that sell vehicles manufactured primarily by Toyota (TM), Honda (HMC) and Nissan (NSANY) — went up 9% to $1.04 billion. Segment operating income rose to $41 million from $21 million in the fourth quarter of 2008.

Sales in the Premium Luxury segment — stores that sell vehicles manufactured primarily by Mercedes, BMW and Lexus — escalated 10% to $860 million. Segment operating income increased to $48 million from $39 million in the fourth quarter of 2008.

Annual Results
 
In 2009, AutoNation reported a profit of $204 million or $1.15 per share (before special items), an increase from $180 million or $1.01 per share (before special items) in the previous year. The profit was a tad lower than the Zacks Consensus Estimate of $1.16 per share.

Consolidated revenue dipped 20% to $10.8 billion. Same-store sales declined 19% to $10.69 billion.

Financials

AutoNation had cash and cash equivalents of $173.7 million as of December 31, 2009, an increase from $110.2 million as of December 31, 2008. In 2009, capital expenditures reduced to $75.5 million from $110.4 million in the prior-year.

The company had total debt of $2.5 billion as of December 31, 2009. This is a decrease from the year-ago level of $3.07 billion. The debt-to-equity ratio stood at 1.09 as of the same period.

AutoNation repurchased 4 million shares of common stock in the quarter for an aggregate purchase price of $69.9 million, reflecting an average purchase price of $17.48.

In 2009, the company repurchased 7.7 million shares of common stock for an aggregate purchase price of $136.1 million, reflecting an average purchase price of $17.68. In 2008, the company repurchased 3.8 million shares of common stock for an aggregate purchase price of $54.1 million, reflecting an average purchase price of $14.24.

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Read the full analyst report on “NSANY”
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