F&I and Showroom, NADA 2021

DEVELOPMENTS 12 F I and Showroom NADA 2021 2020 BROKE RECORDS FOR AUTO STOCK VALUATIONS KERRIGAN ADVISORS Kerrigan Advisors released The Kerrigan Index Year in Review Comprised of the seven publicly traded auto retailers the report demonstrates how a resilient auto retail industry weathered the uncertainty of COVID 19 and emerged stronger than ever with record breaking stock valuations profitability and sales increases In December The Kerrigan Index increased 522 outpacing the S Ps increase of 371 for the month For the year The Kerrigan Index increased almost 30 handily outperforming the broader US stock market and hitting all time highs in 2020 Whats really notable is that the auto retail stocks and The Kerrigan Index have traded at all time highs throughout the final months of 2020 In spite of a historically crisis driven and volatile year the stocks are valued higher than ever before said Ryan Kerrigan Managing Director of Kerrigan Advisors Clearly Wall Street is bullish on auto retail and comfortable that it will continue to evolve on pace with technology and consumer behavior DECEMBER 2020 RETAIL VALUATIONS STAY RESILIENT AS SALES TREND BACK TO 2019 LEVELS US auto sales were down approximately 5 year over year in December with the monthly SAAR estimated at 164 million compared to 171 million in December 2019 That continues a steady climb back to prior year levels after dropping to a low of 874 million in April as dealers faced closures and struggled to source inventory In December six of the seven Kerrigan Index stocks posted increases in December led by Asbury Automotive Group 2923 and AutoNation 1387 For all the talk of auto industry disruption and with some of the disruptors being valued at crazy multiples confidence in the traditional automotive retail model was profoundly reinforced in December said Ryan Kerrigan 2020 YEAR IN REVIEW UNANTICIPATED VOLATILITY OUTSTANDING PERFORMANCE The year 2020 was comprised of three distinct segments a strong start to the year a challenging downturn and a subsequent rebound that brought the industry back to record setting performance After the wild ride The Kerrigan Index increased 2965 significantly outperforming the S P 500 Index which increased only 1626 and all seven component stocks posted increases for the year led by Lithia Motors 12718 and AutoNation 4134 This was the ultimate comeback year and auto dealerships were its comeback kids said Erin Kerrigan Founder Managing Director of Kerrigan Advisors In a year of raging unpredictability from smooth sailing to collapsing financial markets closed doors to critical inventory supply shortages auto retail stayed resilient and continued to prosper From a low point on March 18th when The Kerrigan Index dropped 518 from the start of the year values began to rebound in the second quarter of 2020 and started to trade in all time record territory in the third quarter As reported in the Third Quarter 2020 Blue Sky Report by Kerrigan Advisors there was a 94 year over year rise in dealership earnings in the third quarter driven by higher vehicle gross profit margins increased operational efficiency and price increases due to limited inventory GETTYIMAGES COM JUSUN