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Autonation Reports All-Time Record Quarterly Eps From Continuing Operations

The following excerpt is from the company's SEC filing.

EPS from continuing operations was an all-time record

compared to the year-ago period; this marked the 20th consecutive quarter of double-digit year-over-year growth in EPS

Net income from continuing operations was an all-time record

$119 million

net income from continuing operations of

$107 million

Total revenue of

$5.4 billion

was up

compared to the year-ago period, increasing across all major business sectors; operating income of

$236 million

was an all-time record, an increase of

Announced agreement to acquire Allen Samuels Auto Group, which includes 12 stores with 31 franchises in 6 Texas markets, representing approximately $800 million in annual revenue

FORT LAUDERDALE, Fla., (

October 28, 2015

) — AutoNation, Inc.

(NYSE: AN),

America’s largest automotive retailer, today reported

per share, compared to net income from continuing operations of

per share, for the same period in the prior year, a

improvement on a per-share basis.

revenue totaled

$4.9 billion

in the year-ago period, an increase of

, driven by stronger performance in all business sectors - new vehicles, used vehicles, parts and service, and finance and insurance. In the

, AutoNation’s retail new vehicle unit sales increased

overall and

on a same store basis.

Mike Jackson, Chairman, Chief Executive Officer and President, said, “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 EPS. This quarter we set another record for the highest ever quarterly EPS from continuing operations.”

Mr. Jackson also said, “We are pleased with how the AutoNation brand continues to be embraced and with the progress of our digital initiatives. Our consumer-friendly websites now generate over 25% of unit sales while sales from third-party sources have decreased to under 9%.”

Acquisitions

AutoNation today announced it has signed an agreement to acquire 12 stores operating in the Houston, Dallas-Fort Worth, Corpus Christi, Tyler, Ennis and Waco, Texas markets from Allen Samuels Auto Group, representing approximately $800 million in annual revenue. Texas will represent approximately 25% of AutoNation’s total revenue, with 53 stores, 82 franchises, and 5,300 associates once the acquisition is complete. This transaction is subject to customary terms and conditions, including manufacturer approval, and is expected to close in the first quarter of 2016.

In September 2015, AutoNation completed the previously announced acquisition of a Mercedes-Benz store, an Audi store, and a Subaru and Volkswagen store from Valley Motors Auto Group in the Baltimore, Maryland market. The previously announced acquisition of 13 stores from Carl Gregory Enterprises is expected to close in the fourth quarter of 2015. Since the beginning of 2015, AutoNation has announced acquisitions with approximately $1.7 billion in annual revenue.

Mr. Jackson added, “We continue to seek acquisitions to leverage our scale, expand the AutoNation brand and provide a peerless experience to more customers.”

Recall Policy

AutoNation previously announced its policy not to sell any vehicle for which there is an open safety recall. AutoNation estimates that at any given time 5%-10% of its new and used vehicle inventory will be on sales hold under its policy.

Share Repurchase

During the

, AutoNation repurchased

2.5 million

shares of common stock for an aggregate purchase price of

$150 million

. From

October 1, 2015

through

October 26, 2015

0.4 million

$24 million

. As of

, AutoNation has approximately

$297 million

remaining Board authorization for share repurchase and

111 million

shares outstanding.

Segment Results

Segment results

were as follows:

Domestic

– Domestic segment income

$95 million

compared to year-ago segment income of

$77 million

Import

– Import segment income

$86 million

Premium Luxury

– Premium Luxury segment income

$85 million

$84 million

For the

-month period ended

September 30, 2015

, AutoNation reported net income from continuing operations of

$346 million

per share, compared to adjusted net income from continuing operations of

$298 million

per share, for the same period in the prior year, an improvement of

on a per-share basis. On a GAAP basis, net income from continuing operations for the

September 30, 2014

$303 million

per share. Reconciliations of non-GAAP financial measures are included in the attached financial tables. AutoNation’s revenue for the

, totaled

$15.5 billion

$14.1 billion

for the same period in the prior year.

quarter conference call may be accessed by telephone at (888) 769-8515 (password: AutoNation) at 11:00 a.m. Eastern Time or on AutoNation’s investor relations website at http://investors.autonation.com.

The webcast will also be available on...


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