Pub. 5 Issue 1

21 Issue 1 2019 results with net sales up 12 percent to $5.4 billion and net income up 12 percent to $267 million. Per vehicle profits were stable with used vehicle retail gross profit per unit at $2,215. CarMax also announced the continued rollout of its omnichannel capability, which offers a seamless buy- ing experience to consumers who shop online, in store or both. The company has plans to implement this capability into most Florida dealerships this spring and will open its second customer experience center this summer in Kansas City, Kansas. Expansion of the omnichannel efforts, where CarMax offers customers online price estimates and ap- praisals, vehicle delivery and expedited vehicle pickup at its stores, is expected to continue this summer in North Carolina and Virginia. Group 1 Automotive announced its launch of AcceleRide, its online car buying platform which will be incorporated into Group 1 dealerships' websites. Through AcceleRide, customers can browse Group 1's inventory of more than 38,000 new and used vehicles, customize features, select fi- nancing and payment terms and coordinate delivery to their home, office or local dealership. It is currently available at 79 Group 1 dealerships and will be available at all 116 of its US stores by the end of summer. Other significant industry data include: • Per JD Power, the average new vehicle retail trans- action price is expected to be $33,665, up 5 percent from last year. • Days to turn, the average number of days a new ve- hicle sits on a dealer lot before being sold to a retail customer, was 75 days through June 23rd. This is up 6 days from 2018. • Average incentive spending per unit through the first half of the year was an estimated $3,788, down $130 from last year. Spending on cars is down $304 to $3,588, while spending on trucks/SUVs is down $65 to $3,871. • New vehicle consumer spending is expected to to- tal $38.6 billion in June, down $800 million from last year’s level. • Trucks and SUVs accounted for 71.1 percent of new vehicle retail sales through June 23rd, the highest level ever for the month of June. • Fleet sales increased 3.9 percent in June and are ex- pected to be 322,000 units for the month, represent- ing roughly 22 percent of total light vehicle sales. Sources: Automotive News, JD Power, LMC Automotive, Cox Automotive, SEC Filings and Yahoo Finance. In this monthly issue of The Kerrigan Auto Retail Index, we are pleased to continue coverage of the best public market data available to those involved in the auto retail industry. While the auto retail industry remains highly fragmented and is influenced by thousands of small and mid-sized private companies, the seven publicly-traded auto retail stocks provide a special insight into the dynamics affecting US auto retail. These stocks are “marked-to-market” every business day with the cumulative data and wisdom available to those investing. Methodology The Kerrigan Index™ is composed of the seven publicly traded auto retail companies with operations focused on the US market, including CarMax, AutoNation, Penske Automotive Group, Lithia Motors, Group 1 Automotive, Asbury Automo- tive Group and Sonic Automotive. The Kerrigan Index™ is weighted by the market capi- talization of each company and benchmarked at 100 on 1/3/2000. Kerrigan Advisors is the leading thought partner and sell- side advisor to auto dealers in the US, having sold 79 dealerships in the last five years, including five of the Top 100 Dealership Groups, more than any other firm in the industry. Kerrigan Advisors works with auto retail's leading families on their growth strategy, capital allocation, real estate and buy/sell transactions. Kerrigan Advisors is often asked to keynote top auto retail conferences, as well as leading manufacturer events. In addition to The Kerrigan Index™, the firm publishes The Blue Sky Report®, the industry authority on blue sky multiples and buy/sell trends. To sign up to receive both firm’s reports, please email your contact information to info@kerriganadvi- sors.com or visit our website at www.kerriganadvisors.com. 