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AutoNation Reports Record First Quarter EPS from Continuing Operations


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EPS from continuing operations was $0.97, a record for first quarter results and an increase of 29% compared to first quarter 2014 adjusted EPS from continuing operations of $0.75 ($0.79 for the first quarter of 2014 on a GAAP basis)

- Net income from continuing operations was $112 million, up 23% compared to first quarter 2014 adjusted net income from continuing operations of $91 million ($96 million for the first quarter of 2014 on a GAAP basis)

- Total revenue of $4.9 billion, up 13% compared to the year-ago period, increasing across all major business sectors

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FORT LAUDERDALE, FL -- April 22, 2015: AutoNation, Inc. , America's largest automotive retailer, today reported 2015 first quarter net income from continuing operations of $112 million, or $0.97 per share, compared to adjusted net income from continuing operations of $91 million, or $0.75 per share, for the same period in the prior year, a 29% improvement on a per-share basis. On a GAAP basis, first quarter 2014 net income from continuing operations was $96 million, or $0.79 per share. Reconciliations of non-GAAP financial measures are included in the attached financial tables.

First quarter 2015 revenue totaled $4.9 billion, an increase of 13%, driven by stronger performance in all business sectors – new vehicles, used vehicles, parts and service, and finance and insurance. In the first quarter of 2015, AutoNation's retail new vehicle unit sales increased 10% overall and 9% on a same store basis, while retail used vehicle unit sales increased 12% overall and 11% on a same store basis.

Commenting on the quarterly results, Mike Jackson, Chairman, Chief Executive Officer and President, said, ญญญญ"AutoNation delivered its 18th consecutive quarter of double-digit year-over-year growth in EPS as we increased profitability in each of our business sectors." Mr. Jackson added, "We continue to expect U.S. industry new vehicle unit sales above 17 million in 2015."

Acquisitions In April 2015, AutoNation completed the acquisitions of a Mercedes-Benz store in San Jose, California and a Chrysler Dodge Jeep Ram store in Valencia, California. In addition, AutoNation has signed an agreement to acquire a Jaguar, Land Rover and Volvo store in Spokane, Washington, subject to customary terms and conditions, including manufacturer approval. As previously announced, during the first quarter of 2015, AutoNation completed the acquisitions of a Mercedes-Benz store in Reno, Nevada and a Volkswagen store in the Atlanta, Georgia market. The combined annual revenue for the stores acquired since the beginning of 2015 and the Jaguar, Land Rover and Volvo store is approximately $320 million.

Segment Results

Segment results(1) for the first quarter of 2015 were as follows:

Domestic - Domestic segment income(2) was $79 million compared to year-ago segment income of $64 million, an increase of 24%.

Import - Import segment income(2) was $75 million compared to year-ago segment income of $65 million, an increase of 15%.

Premium Luxury - Premium Luxury segment income(2) was $94 million compared to year-ago segment income of $83 million, an increase of 13%.

The first 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 investors.autonation.com.

The webcast will also be available on AutoNation's website under "Events & Presentations" following the call. A playback of the conference call will be available after 1:00 p.m. Eastern Time on April 22, 2015 through May 6, 2015 by calling (888) 568-0435 (password 75300).

(1) AutoNation has three operating segments: Domestic, Import, and Premium Luxury. The Domestic segment is comprised of stores that sell vehicles manufactured by General Motors, Ford and FCA US (formerly Chrysler); the Import segment is comprised of stores that sell vehicles manufactured primarily by Toyota, Honda, Nissan, and Hyundai; and the Premium Luxury segment is comprised of stores that sell vehicles manufactured primarily by Mercedes-Benz, BMW, Lexus, and Audi.

(2) Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense.