This excerpt taken from the AN 8-K filed Oct 29, 2009.
AutoNation Reports 2009 Third Quarter Results of Operations
FORT LAUDERDALE, Fla., (October 29, 2009) AutoNation, Inc. (NYSE: AN), Americas largest automotive retailer, today reported net income from continuing operations of $65 million or $0.36 per share for the third quarter of 2009, compared to a net loss from continuing operations of $1.40 billion or $7.90 per share for the same period in 2008. In the third quarter of 2008, the Company recorded non-cash charges for goodwill and franchise impairments of $1.46 billion after-tax. Net income from continuing operations for the 2009 third quarter improved 44% on a per-share basis, as compared to adjusted net income from continuing operations of $44 million or $0.25 per share for last years third quarter, which excludes the impairment charges and certain other items disclosed in the attached financial tables.
Commenting on the third quarter, Mike Jackson, Chairman and Chief Executive Officer said, AutoNation delivered solid profitability driven by margin recovery, cost reduction, lower interest expenses, a disciplined operating model and inventory management. Our third quarter profitability improved from third quarter 2008 despite substantially lower new vehicle industry volume compared to last year. Cash for Clunkers was a highly effective stimulus program that provided a much needed lift in auto sales and has set the stage going forward for a gradual recovery of new vehicle sales. The program aided our third quarter results by an estimated 7 cents per share.
Jackson also stated, We expect that the automotive retail market will remain challenging throughout the remainder of 2009 with a gradual recovery beginning in 2010. We are optimistic for the long term prospects of the auto industry based on the successful restructuring of the domestic auto industry, the move to a demand pull system, and the rationalization of the dealer network. As the U.S. economy, consumer confidence and credit markets improve, we expect to be well-positioned to capitalize on these trends.
The Companys third quarter 2009 revenue totaled $2.9 billion, compared to $3.4 billion in the year-ago period, driven primarily by lower vehicle sales, in an environment where industry new vehicle sales remain at depression levels. AutoNations new vehicle unit sales decline was in line with the industrys new vehicle retail sales decline, based on CNW Research Data.
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, and Nissan; and the Premium Luxury segment is comprised of stores that sell vehicles manufactured primarily by Mercedes, BMW, and Lexus.