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AutoNation posts 20th double-digit growth, will buy 12 stores

Staff writer ▼ | October 28, 2015
AutoNation reported third quarter 2015 net income from continuing operations of $119 million, or $1.05 per share.
AutoNation   Net income from continuing operations was $119 million
This compares to net income from continuing operations of $107 million, or $0.90 per share, for the same period in the prior year, a 17% improvement on a per-share basis.

Third quarter 2015 revenue totaled $5.4 billion compared to $4.9 billion in the year-ago period, an increase of 9%, driven by stronger performance in all business sectors - new vehicles, used vehicles, parts and service, and finance and insurance.

In the third quarter of 2015, AutoNation's retail new vehicle unit sales increased 7% overall and 5% on a same store basis.

Mike Jackson, chairman, chief executive officer and president said, "We are very pleased with our strong year-over-year growth across all areas of our business, as well as our 20th consecutive quarter of double-digit year-over-year growth in EPS. This quarter we set another record for the highest ever quarterly EPS from continuing operations."

AutoNation signed an agreement to acquire 12 stores, including 31 franchises, in the Houston, Dallas-Fort Worth, Corpus Christi, Tyler, Ennis and Waco, Texas markets from Allen Samuels Auto Group, representing approximately $800 million in annual revenue and 19,500 retail new and used vehicle unit sales.

For AutoNation, Texas will represent approximately 25% of total revenue, with 53 stores, 82 franchises and 5,300 associates, once the acquisition is completed.

The franchises to be acquired include Chrysler, Dodge, Jeep, Ram, Chevrolet, Hyundai, Mercedes-Benz and Sprinter.

This transaction is subject to customary terms and conditions, including manufacturer approval, and is expected to close in the first quarter of 2016.