AutoNation Reports All-Time Record Quarter and All-Time Record Full Year Results

Thu Jan 31, 2013 7:38am EST

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AutoNation to Brand Domestic and Import Stores from Coast to Coast under
AutoNation Name
FORT LAUDERDALE, Fla.,  Jan. 31, 2013  /PRNewswire/ --

Fourth Quarter 2012 Results

-          EPS from continuing operations an all-time record(1)$0.67, up 31%
compared to fourth quarter 2011 adjusted EPS from continuing operations of 
$0.51  ($0.50  on a GAAP basis)  

-          Total revenue of  $4.2 billion, up 13% compared to the year-ago
period, increasing across all major business sectors; operating income of  $169
million, an increase of 18% compared to the fourth quarter of 2011  

Full Year 2012 Results

-          Adjusted EPS from continuing operations an all-time record  $2.54, up
31% compared to full year 2011 adjusted EPS from continuing operations of 
$1.94. On a GAAP basis, full year EPS from continuing operations was  $2.52  in
2012 compared to  $1.93  in 2011.

-           2012 marks  the second consecutive year of over 30% year-over-year
growth in EPS from continuing operations

-          Total revenue of  $15.7 billion, up 13% compared to 2011, increasing
across all major business sectors; operating income of  $645 million, an
increase of 13% compared to 2011.

Launch of AutoNation Brand

-          AutoNation's 210 Domestic and Import franchises will be marketed
under a unified AutoNation brand from coast to coast, driving consumer awareness
of the peerless customer experience that AutoNation offers in its stores and
online

AutoNation, Inc.  (NYSE: AN), America's largest automotive retailer, today
reported 2012 fourth quarter net income from continuing operations of  $83
million, or  $0.67  per share, compared to adjusted net income from continuing
operations of  $71 million, or  $0.51  per share, for the same period in the
prior year, a 31% improvement on a per-share basis.  On a GAAP basis, fourth
quarter 2011 net income from continuing operations was  $70 million, or  $0.50 
per share.  Reconciliations of non-GAAP financial measures are included in the
attached financial tables.

(Photo:  http://photos.prnewswire.com/prnh/20130131/FL48547-a  )
(Photo:  http://photos.prnewswire.com/prnh/20130131/FL48547-b  )
(Logo:  http://photos.prnewswire.com/prnh/20001017/AUTONATIONLOGO  )

2012 fourth quarter revenue totaled  $4.2 billion, an increase of 13%, driven
primarily by stronger retail new vehicle unit sales.  AutoNation's retail new
vehicle unit sales increased 17% on a same store basis and were up 18% overall.
Based on CNW Research data, in the fourth quarter of 2012, total U.S. industry
retail new vehicle unit sales increased 13%.

Launch of AutoNation Brand
AutoNation announced today that it will be marketing its 210 Domestic and Import
franchises across the country under the AutoNation brand.  The brand transition
involves 23 manufacturer brands and will roll out beginning  February 1, 2013 
in  South Florida  and will be completed in all markets by the end of the second
quarter. Commenting on the branding initiative,  Mike Jackson, Chairman and
Chief Executive Officer, said, "The launch of the AutoNation brand unifies us
under one flag, AutoNation, rather than as local market brands.  We have worked
to provide a peerless customer experience across the enterprise.  AutoNation is
a brand that stands for leadership, transparency, and peerless customer care.
This is an incredibly important moment for us as a company and has the full
support of our manufacturer partners who approved the change to the AutoNation
brand. Since my arrival we have laid a foundation for this transition by
investing more than  $3.7 billion  in facilities, developing best practices in
our stores and Shared Service Center and completing strategic acquisitions
across the country while focusing on the customer as our number one priority."



Commenting on the quarterly results, Mr. Jackson said, "We are very pleased with
our strong year-over-year growth across all areas of our business.  We have
delivered two consecutive years of over 30% growth in earnings per share, and
this quarter we set another record for the highest ever annual and quarterly
adjusted EPS from continuing operations." Mr. Jackson added, "We are looking
forward to a robust new vehicle selling environment in 2013, as consumers enjoy
an unprecedented array of attractive product options and continued access to
affordable credit. We are expecting industry new vehicle sales to be
approximately mid-15 million units in 2013." 

Share Repurchase
During the fourth quarter of 2012, AutoNation repurchased 1.3 million shares for
an aggregate purchase price of  $49 million, at an average price of  $39.21  per
share.  For the full year ended  December 31, 2012, AutoNation repurchased 16.6
million shares for an aggregate purchase price of  $581 million, at an average
price of  $34.89  per share.  AutoNation has  $319 million  remaining Board
authorization for share repurchase.  

Acquisitions of Texas Stores
During the fourth quarter, AutoNation also completed the acquisitions of
Boardwalk Audi, Boardwalk Porsche, Boardwalk Volkswagen, McKinney Volkswagen,
Park Cities Volkswagen, and Spring Chrysler Dodge Jeep Ram.  Together, the
stores sold approximately 14,000 new and used retail units in 2012 with
approximately  $590 million  of revenue.  

Segment results(2)  for the fourth quarter of 2012 were as follows:

* Domestic  - Domestic segment income(3)  was  $54 million  compared to year-ago
segment income of  $44 million.   
* Import  - Import segment income was  $60 million  compared to year-ago segment
income of  $49 million.   
* Premium Luxury  - Premium Luxury segment income was  $80 million  compared to
year-ago segment income of  $73 million.

For the full year ended  December 31, 2012, the Company reported adjusted net
income from continuing operations of  $320 million, or  $2.54  per share,
compared to adjusted net income from continuing operations of  $286 million, or 
$1.94  per share in the prior year, an improvement of 31% on a per-share basis. 
On a GAAP basis, net income from continuing operations for 2012, was  $317
million, or  $2.52  per share, compared to  $284 million, or  $1.93  per share,
for the prior year.  Reconciliations of non-GAAP financial measures are included
in the attached financial tables. The Company's revenue for the full year ended 
December 31, 2012  totaled  $15.7 billion, up 13% compared to  $13.8 billion  in
the prior year.

The fourth 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  January 31, 2013  through  February
11, 2013  by calling 800-391-9851 (password 75300).

--------------------------------------------------

(1)   As compared to adjusted EPS from continuing operations in prior periods.

(2)  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 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.  As
of  March 31, 2012, we revised the basis of segmentation for our Import and
Premium Luxury segments to reclassify our Audi franchises from the Import
segment to the Premium Luxury segment.  In connection with this change, we have
reclassified historical amounts to conform to our current segment presentation.

(3)  Segment income for each of our segments is defined as operating income less
floorplan interest expense.

About AutoNation, Inc.

AutoNation is transforming the automotive retail industry through bold
leadership.  We deliver a superior automotive retail experience through our
customer-focused sales and service processes.   Owning and operating 264 new
vehicle franchises, which sell 32 brands across 15 states, AutoNation is
America's largest automotive retailer, with state-of-the-art operations and the
ability to leverage economies of scale that benefit the customer.  As an
indication of our leadership position in our industry, AutoNation is a component
of the S&P 500 Index.  Follow us at  www.facebook.com/autonation  and 
www.twitter.com/autonation.

For additional information about AutoNation, please visit 
investors.autonation.com  or  www.autonation.com. 

FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements other than
statements of historical fact are, or may be deemed to be, forward-looking
statements. Words such as "anticipates," "expects," "intends," "goals," "plans,"
"believes," "continues," "may," "will," and variations of such words and similar
expressions are intended to identify such forward-looking statements. Statements
regarding our expectations for the automotive retail industry, as well as
statements that describe our objectives, goals, or plans, are forward-looking
statements. Our forward-looking statements reflect our current expectations
concerning future results and events, and they involve known and unknown risks,
uncertainties and other factors that are difficult to predict and may cause our
actual results, performance or achievements to be materially different from any
future results, performance and achievements expressed or implied by these
statements. These risks, uncertainties and other factors include, among others:
economic conditions generally; conditions in the credit markets and changes in
interest rates; the success and financial viability of vehicle manufacturers and
distributors with which we hold franchises; factors affecting our goodwill and
other intangible asset impairment testing; natural disasters and other adverse
weather events; restrictions imposed by vehicle manufacturers; the resolution of
legal and administrative proceedings; regulatory factors affecting our business;
and other factors described in our news releases and filings made under the
securities laws, including, among others, our Annual Reports on Form 10-K, our
Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. 
Forward-looking statements contained in this news release speak only as of the
date of this news release, and we undertake no obligation to update these
forward-looking statements to reflect subsequent events or circumstances.

NON-GAAP FINANCIAL MEASURES
This press release and the attached financial tables contain certain non-GAAP
financial measures as defined under SEC rules, such as adjusted net income and
earnings per share from continuing operations, which exclude certain items
disclosed in the attached financial tables. As required by SEC rules, the
Company provides reconciliations of these measures to the most directly
comparable GAAP measures. The Company believes that these non-GAAP financial
measures improve the transparency of the Company's disclosure, provide a
meaningful presentation of the Company's results from its core business
operations excluding the impact of items not related to the Company's ongoing
core business operations, and improve the period-to-period comparability of the
Company's results from its core business operations.

 AUTONATION, INC.                                                                                                                                                                                            
 UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENTS                                                                                                                                                          
 (In millions, except per share data)                                                                                                                                                                        
                                                                                                                                                                                                    
                                                                                                                                                                                                    
                                                                         Three Months Ended December 31,                                    Twelve Months Ended December 31,                            
                                                                         2012                                  2011                       2012                                2011                  
                                                                                                                                                                                                    
 Revenue:                                                                                                                                                                                            
                                    New vehicle                          $           2,476.0                   $           2,085.6        $           8,906.9                 $           7,498.9   
                                    Used vehicle                         912.1                                 882.2                      3,714.7                             3,512.8               
                                    Parts and service                    600.0                                 573.1                      2,399.2                             2,293.1               
                                    Finance and insurance, net           148.9                                 124.9                      571.2                               474.5                 
                                    Other                                36.5                                  12.6                       76.8                                53.0                  
 Total revenue                                                            4,173.5                               3,678.4                    15,668.8                            13,832.3              
                                                                                                                                                                                                    
 Cost of sales:                                                                                                                                                                                      
                                    New vehicle                          2,320.7                               1,938.1                    8,327.4                             6,951.2               
                                    Used vehicle                         843.7                                 820.6                      3,415.4                             3,228.0               
                                    Parts and service                    347.5                                 334.6                      1,391.3                             1,323.0               
                                    Other                                28.8                                  5.9                        48.3                                26.1                  
 Total cost of sales                                                      3,540.7                               3,099.2                    13,182.4                            11,528.3              
                                                                                                                                                                                                    
 Gross profit                                                             632.8                                 579.2                      2,486.4                             2,304.0               
                                                                                                                                                                                                    
 Selling, general and administrative expenses                             442.2                                 412.7                      1,749.5                             1,649.4               
 Depreciation and amortization                                            22.4                                  21.0                       87.3                                83.7                  
 Franchise rights impairment                                              -                                     -                          4.2                                 -                     
 Other expenses (income), net                                             (0.5)                                 2.0                        0.1                                 (1.1)                 
                                                                                                                                                                                                    
 Operating income                                                         168.7                                 143.5                      645.3                               572.0                 
                                                                                                                                                                                                    
 Non-operating income (expense) items:                                                                                                                                                               
                                    Floorplan interest expense           (12.6)                                (10.9)                     (45.5)                              (42.7)                
                                    Other interest expense               (21.7)                                (17.4)                     (86.9)                              (66.0)                
                                    Loss on debt extinguishment          -                                     (2.2)                      -                                   (2.2)                 
                                    Interest income                      0.1                                   0.1                        0.3                                 0.7                   
                                    Other income (loss), net             0.5                                   (0.3)                      3.6                                 (0.5)                 
                                                                                                                                                                                                    
 Income from continuing operations before income taxes                    135.0                                 112.8                      516.8                               461.3                 
                                                                                                                                                                                                    
 Income tax provision                                                     52.1                                  42.9                       199.5                               177.1                 
                                                                                                                                                                                                    
 Net income from continuing operations                                    82.9                                  69.9                       317.3                               284.2                 
                                                                                                                                                                                                    
 Income (loss) from discontinued operations, net of income taxes          0.3                                   (0.5)                      (0.9)                               (2.8)                 
                                                                                                                                                                                                    
                                                                                                                                                                                                    
 Net income                                                               $               83.2                  $               69.4       $              316.4                $              281.4  
                                                                                                                                                                                                    
                                                                                                                                                                                                    
 Diluted earnings (loss) per share*:                                                                                                                                                                 
                                    Continuing operations                $               0.67                  $               0.50       $                2.52               $               1.93  
                                    Discontinued operations              $                     -               $                     -    $              (0.01)               $             (0.02)  
                                                                                                                                                                                                    
                                    Net income                           $               0.67                  $               0.49       $                2.52               $               1.91  
                                                                                                                                                                                                    
                                                                                                                                                                                                    
 Weighted average common shares outstanding                               123.8                                 140.6                      125.8                               147.3                 
                                                                                                                                                                                                    
 Common shares outstanding, net of treasury stock, at December 31         120.9                                 135.8                      120.9                               135.8                 
                                                                                                                                                                                                    
                                                                                                                                                                                                    
 * Earnings per share amounts are calculated discretely and therefore may not add up to the total.                                                                                                           


 AUTONATION, INC.                                                                                                                                                                                                                                                                                     
 UNAUDITED SUPPLEMENTARY DATA                                                                                                                                                                                                                                                                         
 ($ in millions, except per vehicle data)                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                     
                               Operating Highlights                            Three Months Ended December 31,                                                                                         Twelve Months Ended December 31,                                                          
                                                                               2012                                2011                      $ Variance                           % Variance     2012                  2011                   $ Variance                 % Variance  
                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                     
 Revenue:                                                                                                                                                                                                                                                                             
                               New vehicle                                     $            2,476.0                $        2,085.6          $              390.4                 18.7           $     8,906.9         $      7,498.9         $       1,408.0            18.8        
                               Retail used vehicle                             788.3                               753.7                     34.6                                 4.6            3,230.4               3,047.6                182.8                      6.0         
                               Wholesale                                       123.8                               128.5                     (4.7)                                (3.7)          484.3                 465.2                  19.1                       4.1         
                               Used vehicle                                    912.1                               882.2                     29.9                                 3.4            3,714.7               3,512.8                201.9                      5.7         
                               Parts and service                               600.0                               573.1                     26.9                                 4.7            2,399.2               2,293.1                106.1                      4.6         
                               Finance and insurance, net                      148.9                               124.9                     24.0                                 19.2           571.2                 474.5                  96.7                       20.4        
                               Other                                           36.5                                12.6                      23.9                                                76.8                  53.0                   23.8                                   
 Total revenue                                                                  $            4,173.5                $        3,678.4          $              495.1                 13.5           $   15,668.8          $    13,832.3          $       1,836.5            13.3        
                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                     
 Gross profit:                                                                                                                                                                                                                                                                        
                               New vehicle                                     $               155.3               $           147.5         $                  7.8               5.3            $       579.5         $        547.7         $           31.8           5.8         
                               Retail used vehicle                             67.7                                62.3                      5.4                                  8.7            293.8                 280.6                  13.2                       4.7         
                               Wholesale                                       0.7                                 (0.7)                     1.4                                                 5.5                   4.2                    1.3                                    
                               Used vehicle                                    68.4                                61.6                      6.8                                  11.0           299.3                 284.8                  14.5                       5.1         
                               Parts and service                               252.5                               238.5                     14.0                                 5.9            1,007.9               970.1                  37.8                       3.9         
                               Finance and insurance                           148.9                               124.9                     24.0                                 19.2           571.2                 474.5                  96.7                       20.4        
                               Other                                           7.7                                 6.7                       1.0                                                 28.5                  26.9                   1.6                                    
 Total gross profit                                                             632.8                               579.2                     53.6                                 9.3            2,486.4               2,304.0                182.4                      7.9         
                                                                                                                                                                                                                                                                                     
 Selling, general and administrative expenses                                   442.2                               412.7                     (29.5)                               (7.1)          1,749.5               1,649.4                (100.1)                    (6.1)       
                                                                                                                                                                                                                                                                                     
 Depreciation and amortization                                                  22.4                                21.0                      (1.4)                                               87.3                  83.7                   (3.6)                                  
 Franchise rights impairment                                                    -                                   -                         -                                                   4.2                   -                      (4.2)                                  
 Other expenses (income), net                                                   (0.5)                               2.0                       2.5                                                 0.1                   (1.1)                  (1.2)                                  
 Operating income                                                               168.7                               143.5                     25.2                                 17.6           645.3                 572.0                  73.3                       12.8        
                                                                                                                                                                                                                                                                                     
 Non-operating income (expense) items:                                                                                                                                                                                                                                                
                               Floorplan interest expense                      (12.6)                              (10.9)                    (1.7)                                               (45.5)                (42.7)                 (2.8)                                  
                               Other interest expense                          (21.7)                              (17.4)                    (4.3)                                               (86.9)                (66.0)                 (20.9)                                 
                               Loss on debt extinguishment                     -                                   (2.2)                     2.2                                                 -                     (2.2)                  2.2                                    
                               Interest income                                 0.1                                 0.1                       -                                                   0.3                   0.7                    (0.4)                                  
                               Other income (loss), net                        0.5                                 (0.3)                     0.8                                                 3.6                   (0.5)                  4.1                                    
 Income from continuing operations before income taxes                          $               135.0               $           112.8         $                22.2                19.7           $       516.8         $        461.3         $           55.5           12.0        
                                                                                                                                                                                                                                                                                     
 Retail vehicle unit sales:                                                                                                                                                                                                                                                           
                               New                                             70,957                              60,191                    10,766                               17.9           267,810               224,034                43,776                     19.5        
                               Used                                            42,978                              41,946                    1,032                                2.5            180,973               171,094                9,879                      5.8         
                                                                               113,935                             102,137                   11,798                               11.6           448,783               395,128                53,655                     13.6        
                                                                                                                                                                                                                                                                                     
 Revenue per vehicle retailed:                                                                                                                                                                                                                                                        
                               New                                             $             34,894                $         34,650          $                 244                0.7            $      33,258         $       33,472         $           (214)          (0.6)       
                               Used                                            $             18,342                $         17,968          $                 374                2.1            $      17,850         $       17,812         $              38          0.2         
                                                                                                                                                                                                                                                                                     
 Gross profit per vehicle retailed:                                                                                                                                                                                                                                                   
                               New                                             $               2,189               $           2,451         $                (262)               (10.7)         $       2,164         $        2,445         $           (281)          (11.5)      
                               Used                                            $               1,575               $           1,485         $                   90               6.1            $       1,623         $        1,640         $             (17)         (1.0)       
                               Finance and insurance                           $               1,307               $           1,223         $                   84               6.9            $       1,273         $        1,201         $              72          6.0         
                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                     
                               Operating Percentages                           Three Months Ended December 31,                                 Twelve Months Ended December 31,                                                                                                          
                                                                               2012 (%)                            2011 (%)                  2012 (%)                             2011 (%)                                                                                           
                                                                                                                                                                                                                                                                                     
 Revenue mix percentages:                                                                                                                                                                                                                                                             
                               New vehicle                                     59.3                                56.7                      56.8                                 54.2                                                                                               
                               Used vehicle                                    21.9                                24.0                      23.7                                 25.4                                                                                               
                               Parts and service                               14.4                                15.6                      15.3                                 16.6                                                                                               
                               Finance and insurance, net                      3.6                                 3.4                       3.6                                  3.4                                                                                                
                               Other                                           0.8                                 0.3                       0.6                                  0.4                                                                                                
                                                                               100.0                               100.0                     100.0                                100.0                                                                                              
                                                                                                                                                                                                                                                                                     
 Gross profit mix percentages:                                                                                                                                                                                                                                                        
                               New vehicle                                     24.5                                25.5                      23.3                                 23.8                                                                                               
                               Used vehicle                                    10.8                                10.6                      12.0                                 12.4                                                                                               
                               Parts and service                               39.9                                41.2                      40.5                                 42.1                                                                                               
                               Finance and insurance                           23.5                                21.6                      23.0                                 20.6                                                                                               
                               Other                                           1.3                                 1.1                       1.2                                  1.1                                                                                                
                                                                               100.0                               100.0                     100.0                                100.0                                                                                              
                                                                                                                                                                                                                                                                                     
 Operating items as a percentage of revenue:                                                                                                                                                                                                                                          
                               Gross profit:                                                                                                                                                                                                                                         
                               New vehicle                                     6.3                                 7.1                       6.5                                  7.3                                                                                                
                               Used vehicle - retail                           8.6                                 8.3                       9.1                                  9.2                                                                                                
                               Parts and service                               42.1                                41.6                      42.0                                 42.3                                                                                               
                               Total                                           15.2                                15.7                      15.9                                 16.7                                                                                               
                               Selling, general and administrative expenses    10.6                                11.2                      11.2                                 11.9                                                                                               
                               Operating income                                4.0                                 3.9                       4.1                                  4.1                                                                                                
                                                                                                                                                                                                                                                                                     
 Operating items as a percentage of total gross profit:                                                                                                                                                                                                                               
                               Selling, general and administrative expenses    69.9                                71.3                      70.4                                 71.6                                                                                               
                               Operating income                                26.7                                24.8                      26.0                                 24.8                                                                                               


 AUTONATION, INC.                                                                                                                                                                                                                                                                                                                                         
 UNAUDITED SUPPLEMENTARY DATA                                                                                                                                                                                                                                                                                                                             
 ($ in millions)                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                                         
                    Segment Operating Highlights                                           Three Months Ended December 31,                                                                                                                       Twelve Months Ended December 31,                                                                    
                                                                                           2012                                   2011                                 $ Variance                            % Variance                    2012                       2011                       $ Variance                  % Variance  
                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                                         
 Revenue:                                                                                                                                                                                                                                                                                                                                 
                    Domestic                                                               $           1,322.4                    $          1,209.9                   $              112.5                  9.3                           $          5,131.6         $          4,655.4         $            476.2          10.2        
                    Import                                                                 1,463.1                                1,241.0                              222.1                                 17.9                          5,828.8                    4,933.3                    895.5                       18.2        
                    Premium luxury                                                         1,351.3                                1,190.9                              160.4                                 13.5                          4,553.3                    4,096.4                    456.9                       11.2        
                    Total segment revenue                                                  $           4,136.8                    $          3,641.8                   $              495.0                  13.6                          $        15,513.7          $        13,685.1          $         1,828.6           13.4        
                    Corporate and other                                                    36.7                                   36.6                                 0.1                                   0.3                           155.1                      147.2                      7.9                         5.4         
                    Total consolidated revenue                                             $           4,173.5                    $          3,678.4                   $              495.1                  13.5                          $        15,668.8          $        13,832.3          $         1,836.5           13.3        
                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                                         
 *Segment income                                                                                                                                                                                                                                                                                                                          
                    Domestic                                                               $                54.2                  $              44.1                  $                10.1                 22.9                          $            209.4         $            180.0         $              29.4         16.3        
                    Import                                                                 59.8                                   48.9                                 10.9                                  22.3                          257.9                      227.1                      30.8                        13.6        
                    Premium luxury                                                         80.4                                   73.4                                 7.0                                   9.5                           270.4                      244.1                      26.3                        10.8        
                    Total segment income                                                   194.4                                  166.4                                28.0                                  16.8                          737.7                      651.2                      86.5                        13.3        
                                                                                                                                                                                                                                                                                                                                         
 Corporate and other                                                                        (38.3)                                 (33.8)                               (4.5)                                                               (137.9)                    (121.9)                    (16.0)                                  
 Add:  Floorplan interest expense                                                           12.6                                   10.9                                 1.7                                                                 45.5                       42.7                       2.8                                     
 Operating income                                                                           $              168.7                   $            143.5                   $                25.2                 17.6                          $            645.3         $            572.0         $              73.3         12.8        
                                                                                                                                                                                                                                                                                                                                         
 * Segment income for each of our segments is defined as operating income less floorplan interest expense                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                         
 Retail new vehicle unit sales:                                                                                                                                                                                                                                                                                                           
                    Domestic                                                               21,862                                 20,059                               1,803                                 9.0                           85,947                     76,335                     9,612                       12.6        
                    Import                                                                 33,607                                 27,175                               6,432                                 23.7                          133,938                    106,175                    27,763                      26.1        
                    Premium luxury                                                         15,488                                 12,957                               2,531                                 19.5                          47,925                     41,524                     6,401                       15.4        
                                                                                           70,957                                 60,191                               10,766                                17.9                          267,810                    224,034                    43,776                      19.5        
                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                                         
                    Brand Mix - New Vehicle Retail Units Sold                                                                                                                                                                                                                                                                            
                                                                                           Three Months Ended December 31,                                               Twelve Months Ended December 31,                                                                                                                                    
                                                                                           2012 (%)                               2011 (%)                             2012 (%)                              2011 (%)                                                                                                                    
                                                                                                                                                                                                                                                                                                                                         
                    Domestic:                                                                                                                                                                                                                                                                                                            
                    Ford, Lincoln                                                          17.1                                   18.5                                 17.5                                  18.7                                                                                                                        
                    Chevrolet, Buick, Cadillac, GMC                                        10.0                                   11.2                                 10.8                                  12.1                                                                                                                        
                    Chrysler, Jeep, Dodge                                                  3.7                                    3.6                                  3.8                                   3.3                                                                                                                         
                    Domestic total                                                         30.8                                   33.3                                 32.1                                  34.1                                                                                                                        
                                                                                                                                                                                                                                                                                                                                         
                    Import:                                                                                                                                                                                                                                                                                                              
                    Honda                                                                  11.0                                   9.3                                  11.5                                  10.7                                                                                                                        
                    Toyota                                                                 19.7                                   19.2                                 20.5                                  18.4                                                                                                                        
                    Nissan                                                                 10.2                                   10.4                                 11.2                                  11.5                                                                                                                        
                    Other imports(1)                                                       6.5                                    6.3                                  6.8                                   6.8                                                                                                                         
                    Import total                                                           47.4                                   45.2                                 50.0                                  47.4                                                                                                                        
                                                                                                                                                                                                                                                                                                                                         
                    Premium Luxury:                                                                                                                                                                                                                                                                                                      
                    Mercedes-Benz                                                          10.2                                   10.6                                 8.1                                   8.5                                                                                                                         
                    BMW                                                                    6.0                                    5.5                                  4.8                                   5.0                                                                                                                         
                    Lexus                                                                  2.7                                    2.4                                  2.2                                   2.0                                                                                                                         
                    Other premium luxury (Audi, Land Rover, Porsche)(1)                     2.9                                    3.0                                  2.8                                   3.0                                                                                                                         
                    Premium Luxury total                                                   21.8                                   21.5                                 17.9                                  18.5                                                                                                                        
                                                                                                                                                                                                                                                                                                                                         
                                                                                           100.0                                  100.0                                100.0                                 100.0                                                                                                                       
                                                                                                                                                                                                                                                                                                                                         
 (1)                As of March 31, 2012, we revised the basis of segmentation for our Import and Premium Luxury segments to reclassify our Audi franchises                                                                                                                                                                                        
                    from the Import segment to the Premium Luxury segment. In connection with this change, we have reclassified historical amounts to conform to                                                                                                                                                                                   
                    our current segment presentation. We reclassified revenue of $50.9 million and segment income of $3.6 million during the three months ended                                                                                                                                                                                    
                    December 31, 2011, and revenue of $187.7 million and segment income of $13.2 million during the twelve months ended December 31, 2011                                                                                                                                                                                          
                    related to the five Audi franchises we held during these periods.                                                                                                                                                                                                                                                              


 AUTONATION, INC.                                                                                                                                                                                                                                                                                          
 UNAUDITED SUPPLEMENTARY DATA, Continued                                                                                                                                                                                                                                                                   
 ($ in millions)                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
   Capital Expenditures / Stock Repurchases                                               Three Months Ended December 31,                                                 Twelve Months Ended December 31,                                                                                        
                                                                                         2012                                   2011                                   2012                                  2011                                                                            
                                                                                                                                                                                                                                                                                             
   Capital expenditures(1)                                                                $                  60.8                $                    44.5              $               183.6                 $              158.1                                                            
   Cash paid for acquisitions(2)                                                          $                141.6                 $                          -           $               141.6                 $                64.2                                                           
   Proceeds from exercises of stock options                                               $                    9.9               $                    12.4              $                 32.0                $                78.7                                                           
   Stock repurchases:                                                                                                                                                                                                                                                                         
   Aggregate purchase price                                                               $                  49.0                $                   217.8              $               580.6                 $              583.4                                                            
   Shares repurchased (in millions)                                                       1.3                                    6.3                                    16.6                                  17.1                                                                            
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
   Floorplan Assistance and Expense                                                       Three Months Ended December 31,                                                                                         Twelve Months Ended December 31,                                                    
                                                                                         2012                                   2011                                   Variance                              2012                            2011                          Variance          
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
   Floorplan assistance earned (included in cost of sales)                                $                  19.0                $                    16.4              $                   2.6               $                73.5           $              61.1           $          12.4   
   Floorplan interest expense (new vehicles)                                              (12.1)                                 (10.4)                                 (1.7)                                 (43.7)                          (40.3)                        (3.4)             
                                                                                                                                                                                                                                                                                             
   Net new vehicle inventory carrying benefit                                             $                    6.9               $                      6.0             $                   0.9               $                29.8           $              20.8           $            9.0  
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
   Balance Sheet and Other Highlights                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                             
                                                                                         December 31, 2012                      December 31, 2011                                                                                                                                            
                                                                                                                                                                                                                                                                                             
   Cash and cash equivalents                                                              $                   69.7               $                     86.6                                                                                                                                   
   Inventory                                                                              $              2,396.9                 $                1,809.2                                                                                                                                     
   Total floorplan notes payable                                                          $              2,540.2                 $                1,898.8                                                                                                                                     
   Non-vehicle debt                                                                       $              2,096.1                 $                1,647.0                                                                                                                                     
   Equity                                                                                 $              1,688.5                 $                1,894.6                                                                                                                                     
   New days supply (industry standard of selling                                                                                                                                                                                                                                              
   days, including fleet)                                                                 55 days                                50 days                                                                                                                                                      
                                                                                                                                                                                                                                                                                             
   Used days supply (trailing calendar month days)                                        35 days                                31 days                                                                                                                                                      
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                             
   Key Credit Agreement Covenant Compliance Calculations                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                             
   Ratio of funded indebtedness/                                                                                                                                                                                                                                                              
   Adjusted EBITDA                                                                                                               2.82x                                                                                                                                                        
   Covenant                                                                                less than                              3.75x                                                                                                                                                        
                                                                                                                                                                                                                                                                                             
   Ratio of funded indebtedness including floorplan/                                                                                                                                                                                                                                         
   Total capitalization including floorplan                                                                                     59.1%                                                                                                                                                        
   Covenant                                                                              less than                              65.0%                                                                                                                                                        
                                                                                                                                                                                                                                                                                             


   (1)  Includes accrued construction in progress and excludes property acquired under capital leases.  
                                                                                                                                                                                                                                                        
   (2)  Total purchase price for acquisitions, including capital leases and deferred purchase price commitments, was                                                                                                                                    
        $203.7 million and $64.2 million for the years ended December 31, 2012 and 2011, respectively.                                                                                                                                                  


 AUTONATION, INC.                                                                                                                                                                                                                                      
 UNAUDITED SUPPLEMENTARY DATA, Continued                                                                                                                                                                                                               
 ($ in millions, except per share data)                                                                                                                                                                                                                
                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                          
   Comparable Basis Reconciliations*                                                                                                                                                                                                       
                                                                                             Three Months Ended December 31,                                                                                                                    
                                                                                             Net Income                                                 Diluted Earnings Per Share**                                                          
                                                                                                                                                                                                                                          
                                                                                             2012                         2011                        2012                                2011                                            
                                                                                                                                                                                                                                          
   As reported                                                                                $           83.2             $          69.4             $          0.67                     $                 0.49                          
                                                                                                                                                                                                                                          
                         Discontinued operations, net of income taxes                        (0.3)                        0.5                         $               -                   $                      -                        
   From continuing operations, as reported                                                    82.9                         69.9                        $         0.67                      $                 0.50                          
                         Loss on debt extinguishment                                         -                            1.4                         $               -                   $                 0.01                          
                                                                                                                                                                                                                                          
   Adjusted                                                                                   $           82.9             $          71.3             $         0.67                      $                 0.51                          
                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                          
                                                                                             Twelve Months Ended December 31,                                                                                                                   
                                                                                             Net Income                                                 Diluted Earnings Per Share**                                                          
                                                                                                                                                                                                                                          
                                                                                             2012                         2011                        2012                                2011                                            
                                                                                                                                                                                                                                          
   As reported                                                                                $          316.4             $        281.4              $         2.52                      $                 1.91                          
                                                                                                                                                                                                                                          
                         Discontinued operations, net of income taxes                        0.9                          2.8                         $         0.01                      $                 0.02                          
   From continuing operations, as reported                                                    317.3                        284.2                       $                 2.52              $                 1.93                          
                         Franchise rights impairment                                         2.6                          -                           $                 0.02              $                      -                        
                         Loss on debt extinguishment                                         -                            1.4                         $              -                    $                 0.01                          
                                                                                                                                                                                                                                          
   Adjusted                                                                                   $          319.9             $        285.6              $        2.54                       $                 1.94                          
                                                                                                                                                                                                                                          
   *                     Please refer to the "Non-GAAP Financial Measures" section of the Press Release.                                                                                                                                             
   **                    Diluted earnings per share amounts are calculated discretely and therefore may not add up to the total.                                                                                                                     


 AUTONATION, INC.                                                                                                                                                                                                                                                                      
 UNAUDITED SAME STORE DATA                                                                                                                                                                                                                                                             
 ($ in millions, except per vehicle data)                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                      
                         Operating Highlights          Three Months Ended December 31,                                                                                           Twelve Months Ended December 31,                                                                 
                                                       2012                               2011                         $ Variance                           % Variance     2012                      2011                      $ Variance                 % Variance  
                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                      
 Revenue:                                                                                                                                                                                                                                                              
                         New vehicle                   $           2,464.6                $           2,085.6          $              379.0                 18.2           $        8,854.6          $        7,498.9          $        1,355.7           18.1        
                         Retail used vehicle           783.4                              753.7                        29.7                                 3.9            3,208.9                   3,047.6                   161.3                      5.3         
                         Wholesale                     122.6                              128.5                        (5.9)                                (4.6)          473.6                     465.2                     8.4                        1.8         
                         Used vehicle                  906.0                              882.2                        23.8                                 2.7            3,682.5                   3,512.8                   169.7                      4.8         
                         Parts and service             598.8                              573.1                        25.7                                 4.5            2,388.2                   2,293.1                   95.1                       4.1         
                         Finance and insurance, net    148.2                              124.9                        23.3                                 18.7           568.1                     474.5                     93.6                       19.7        
                         Other                         36.0                               12.6                         23.4                                                76.0                      53.0                      23.0                                   
 Total revenue                                          $           4,153.6                $           3,678.4          $              475.2                 12.9           $       15,569.4          $       13,832.3          $        1,737.1           12.6        
                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                      
 Gross profit:                                                                                                                                                                                                                                                         
                         New vehicle                   $              154.6               $              147.5         $                 7.1                4.8            $           576.1         $           547.7         $             28.4         5.2         
                         Retail used vehicle           67.1                               62.3                         4.8                                  7.7            291.5                     280.6                     10.9                       3.9         
                         Wholesale                     0.7                                (0.7)                        1.4                                                 5.5                       4.2                       1.3                                    
                         Used vehicle                  67.8                               61.6                         6.2                                  10.1           297.0                     284.8                     12.2                       4.3         
                         Parts and service             252.1                              238.5                        13.6                                 5.7            1,003.2                   970.1                     33.1                       3.4         
                         Finance and insurance         148.2                              124.9                        23.3                                 18.7           568.1                     474.5                     93.6                       19.7        
                         Other                         7.6                                6.7                          0.9                                                 28.2                      26.9                      1.3                                    
 Total gross profit                                     $              630.3               $              579.2         $                51.1                8.8            $        2,472.6          $        2,304.0          $           168.6          7.3         
                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                      
 Retail vehicle unit sales:                                                                                                                                                                                                                                            
                         New                           70,644                             60,191                       10,453                               17.4           266,050                   224,034                   42,016                     18.8        
                         Used                          42,711                             41,946                       765                                  1.8            179,669                   171,094                   8,575                      5.0         
                                                       113,355                            102,137                      11,218                               11.0           445,719                   395,128                   50,591                     12.8        
                                                                                                                                                                                                                                                                      
 Revenue per vehicle retailed:                                                                                                                                                                                                                                         
                         New                           $            34,888                $            34,650          $                 238                0.7            $         33,282          $         33,472          $           (190)          (0.6)       
                         Used                          $            18,342                $            17,968          $                 374                2.1            $         17,860          $         17,812          $               48         0.3         
                                                                                                                                                                                                                                                                      
 Gross profit per vehicle retailed:                                                                                                                                                                                                                                    
                         New                           $              2,188               $              2,451         $                (263)               (10.7)         $           2,165         $           2,445         $           (280)          (11.5)      
                         Used                          $              1,571               $              1,485         $                  86                5.8            $           1,622         $           1,640         $             (18)         (1.1)       
                         Finance and insurance         $              1,307               $              1,223         $                  84                6.9            $           1,275         $           1,201         $               74         6.2         
                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                      
                         Operating Percentages         Three Months Ended December 31,                                   Twelve Months Ended December 31,                                                                                                                 
                                                       2012 (%)                           2011 (%)                     2012 (%)                             2011 (%)                                                                                                  
                                                                                                                                                                                                                                                                      
 Revenue mix percentages:                                                                                                                                                                                                                                              
                         New vehicle                   59.3                               56.7                         56.9                                 54.2                                                                                                      
                         Used vehicle                  21.8                               24.0                         23.7                                 25.4                                                                                                      
                         Parts and service             14.4                               15.6                         15.3                                 16.6                                                                                                      
                         Finance and insurance, net    3.6                                3.4                          3.6                                  3.4                                                                                                       
                         Other                         0.9                                0.3                          0.5                                  0.4                                                                                                       
                                                       100.0                              100.0                        100.0                                100.0                                                                                                     
                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                      
 Gross profit mix percentages:                                                                                                                                                                                                                                         
                         New vehicle                   24.5                               25.5                         23.3                                 23.8                                                                                                      
                         Used vehicle                  10.8                               10.6                         12.0                                 12.4                                                                                                      
                         Parts and service             40.0                               41.2                         40.6                                 42.1                                                                                                      
                         Finance and insurance         23.5                               21.6                         23.0                                 20.6                                                                                                      
                         Other                         1.2                                1.1                          1.1                                  1.1                                                                                                       
                                                       100.0                              100.0                        100.0                                100.0                                                                                                     
                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                      
 Operating items as a percentage of revenue:                                                                                                                                                                                                                           
                         Gross Profit:                                                                                                                                                                                                                                
                         New vehicle                   6.3                                7.1                          6.5                                  7.3                                                                                                       
                         Used vehicle - retail         8.6                                8.3                          9.1                                  9.2                                                                                                       
                         Parts and service             42.1                               41.6                         42.0                                 42.3                                                                                                      
                         Total                         15.2                               15.7                         15.9                                 16.7                                                                                                      


SOURCE  AutoNation, Inc.


Marc Cannon, +1-954-769-3146, cannonm@autonation.com, Investor contacts: Cheryl
Scully, +1-954-769-7734, scullyc@autonation.com, Kate Keyser-Pearlman,
+1-954-769-7342,  keyserk1@autonation.com

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