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AutoNation Reports All-Time Record Quarterly EPS from Continuing Operations

FORT LAUDERDALE, Fla., July 19, 2012 /PRNewswire/ -- AutoNation, Inc. (NYSE: AN), America's largest automotive retailer, today reported 2012 second quarter adjusted net income from continuing operations of $82 million, or $0.66 per share, compared to net income from continuing operations of $73 million, or $0.49 per share, for the same period in the prior year, a 35% improvement on a per-share basis. On a GAAP basis, second quarter 2012 net income from continuing operations was $79 million, or $0.64 per share. Reconciliations of non-GAAP financial measures are included in the attached financial tables.

(Logo: http://photos.prnewswire.com/prnh/20001017/AUTONATIONLOGO )

2012 second quarter revenue totaled $3.9 billion, compared to $3.3 billion in the year-ago period, an increase of 17%, driven primarily by stronger retail new vehicle unit sales. AutoNation's retail new vehicle unit sales increased 29%. Based on CNW Research data, total U.S. industry retail new vehicle unit sales increased 15%.

Mike Jackson, Chairman and Chief Executive Officer, said, "We delivered solid double-digit growth in operating income in the second quarter, driven by improved gross profit in our new vehicle, parts and service, and finance and insurance business sectors, as well as significantly improved operating leverage. We are very pleased with our strong year-over-year growth in these areas of our business."

Commenting on the automotive retail environment, Mr. Jackson added, "We continued to see a strong new vehicle selling environment in the second quarter, supported by genuine replacement demand, a healthy credit environment, and accelerated product offerings. We are expecting industry new vehicle sales to reach mid-14 million units in 2012."

During the second quarter of 2012, AutoNation repurchased 3.7 million shares of common stock for an aggregate purchase price of $126.2 million. As of June 30, 2012, there were 121 million shares outstanding. AutoNation today announced that the Board of Directors authorized the repurchase of up to an additional $250 million of AutoNation common stock. With the increased authorization, AutoNation has approximately $368 million remaining Board authorization for share repurchase.

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(2) segment is comprised of stores that sell vehicles manufactured primarily by Toyota, Honda, Hyundai and Nissan; and the Premium Luxury(2) segment is comprised of stores that sell vehicles manufactured primarily by Mercedes-Benz, BMW, Audi and Lexus. Segment results for the second quarter of 2012 were as follows:

    --  Domestic - Domestic segment income(3) was $54 million compared to
        year-ago segment income of $46 million.  Second quarter Domestic retail
        new vehicle unit sales increased 17%.
    --  Import - Import segment income(3) was $67 million compared to year-ago
        segment income of $63 million.  Second quarter Import retail new vehicle
        unit sales increased 44% as sales normalized from the tsunami effects
        from the prior year.
    --  Premium Luxury - Premium Luxury segment income(3) was $68 million
        compared to year-ago segment income of $60 million.  Second quarter
        Premium Luxury retail new vehicle unit sales increased 16%.

For the six-month period ended June 30, 2012, the Company reported adjusted net income from continuing operations of $155 million, or $1.21 per share, compared to net income from continuing operations of $144 million, or $0.95 per share for the same period in the prior year, an improvement of 27% on a per-share basis. On a GAAP basis, net income from continuing operations for the six-month period ended June 30, 2012 was $153 million, or $1.19 per share. The Company's revenue for the six-month period ended June 30, 2012, totaled $7.6 billion, up 14% compared to $6.6 billion for the same period in the prior year.

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

The webcast will also be available on our website under "Events & Presentations" following the call. A playback of the conference call will be available after 1:00 p.m. Eastern Time on July 19, 2012, through July 30, 2012 by calling (800) 337-6538 (password 75300).

(1) As compared to adjusted EPS from continuing operations in prior periods.
(2)( )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 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 260 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. AutoNation is driven to be the best-run, most profitable automotive retailer. 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 June 30,                Six Months Ended June 30,
                                                                                                              ---------------------------                -------------------------
                                                                                                                                          2012                                      2011       2012       2011
                                                                                                                                          ----                                      ----       ----       ----

    Revenue:
                            New vehicle                                                                                             $2,196.1                                  $1,746.6   $4,190.4   $3,531.7
                            Used vehicle                                                                                               947.4                                     887.3    1,866.2    1,718.7
                            Parts and service                                                                                          602.5                                     572.0    1,202.4    1,142.0
                            Finance and insurance, net                                                                                 145.1                                     117.0      275.3      227.7
                            Other                                                                                                       13.4                                      13.4       27.2       27.3

    Total revenue                                                                                                                    3,904.5                                   3,336.3    7,561.5    6,647.4
                                                                                                                                     -------                                   -------    -------    -------

    Cost of sales:
                            New vehicle                                                                                              2,050.6                                   1,609.9    3,910.9    3,269.7
                            Used vehicle                                                                                               870.3                                     808.7    1,708.0    1,562.0
                            Parts and service                                                                                          349.1                                     326.8      698.8      652.3
                            Other                                                                                                        6.5                                       7.5       12.8       13.8

    Total cost of sales                                                                                                              3,276.5                                   2,752.9    6,330.5    5,497.8
                                                                                                                                     -------                                   -------    -------    -------

    Gross profit                                                                                                                       628.0                                     583.4    1,231.0    1,149.6

    Selling, general and administrative expenses                                                                                       438.6                                     417.6      871.5      825.3
    Depreciation and amortization                                                                                                       20.8                                      21.1       42.0       41.8
    Franchise rights impairment                                                                                                          4.2                                         -        4.2          -
    Other expenses (income), net                                                                                                         0.2                                       0.3        0.4       (1.9)
                                                                                                                                         ---                                       ---        ---       ----

    Operating income                                                                                                                   164.2                                     144.4      312.9      284.4

    Non-operating income (expense) items:
                            Floorplan interest expense                                                                                 (10.8)                                    (10.9)     (21.5)     (22.1)
                            Other interest expense                                                                                     (22.5)                                    (15.9)     (43.0)     (32.2)
                            Interest income                                                                                              0.1                                       0.3        0.2        0.6
                            Other income (loss), net                                                                                    (1.4)                                      0.5        0.6        2.2


    Income from continuing operations before income taxes                                                                              129.6                                     118.4      249.2      232.9

    Income tax provision                                                                                                                50.6                                      45.1       96.7       89.3
                                                                                                                                        ----                                      ----       ----       ----

    Net income from continuing operations                                                                                               79.0                                      73.3      152.5      143.6

    Loss from discontinued operations, net of income taxes                                                                              (0.4)                                     (1.4)      (0.9)      (2.3)
                                                                                                                                        ----                                      ----       ----       ----


    Net income                                                                                                                         $78.6                                     $71.9     $151.6     $141.3
                                                                                                                                       =====                                     =====     ======     ======


    Diluted earnings (loss) per share*:
                            Continuing operations                                                                                      $0.64                                     $0.49      $1.19      $0.95
                            Discontinued operations                                                                 $                      -                                    $(0.01)    $(0.01)    $(0.02)

                            Net income                                                                                                 $0.64                                     $0.48      $1.18      $0.94


    Weighted average common shares outstanding                                                                                         123.7                                     150.0      128.0      150.9

    Common shares outstanding, net of treasury stock, at June 30                                                                       120.6                                     145.7      120.6      145.7


    * 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 June 30,                                                         Six Months Ended June 30,
                                                                                                   --------------------               ---------------------------                                                         -------------------------
                                                                                                                         2012                                     2011                                        $ Variance                                 % Variance          2012           2011            $ Variance          % Variance
                                                                                                                         ----                                     ----                                        ----------                                 ----------          ----           ----            ----------          ----------


    Revenue:
                                                           New vehicle                                                                                  $2,196.1                                    $1,746.6                                     $449.5                25.7       $4,190.4        $3,531.7              $658.7              18.7
                                                             Retail used vehicle                                                                           829.5                                       786.0                                       43.5                 5.5        1,630.6         1,513.4               117.2               7.7
                                                             Wholesale                                                                                     117.9                                       101.3                                       16.6                16.4          235.6           205.3                30.3              14.8

                                                           Used vehicle                                                                                    947.4                                       887.3                                       60.1                 6.8        1,866.2         1,718.7               147.5               8.6

                                                           Parts and service                                                                               602.5                                       572.0                                       30.5                 5.3        1,202.4         1,142.0                60.4               5.3
                                                           Finance and insurance, net                                                                      145.1                                       117.0                                       28.1                24.0          275.3           227.7                47.6              20.9
                                                           Other                                                                                            13.4                                        13.4                                          -                               27.2            27.3                (0.1)
    Total revenue                                                                                                                                       $3,904.5                                    $3,336.3                                     $568.2                17.0       $7,561.5        $6,647.4              $914.1              13.8
                                                                                                                                                        ========                                    ========                                     ======                           ========        ========              ======


    Gross profit:
                                                           New vehicle                                                                                    $145.5                                      $136.7                                       $8.8                 6.4         $279.5          $262.0               $17.5               6.7
                                                             Retail used vehicle                                                                            75.1                                        77.1                                       (2.0)               (2.6)         153.6           150.9                 2.7               1.8
                                                             Wholesale                                                                                       2.0                                         1.5                                        0.5                                4.6             5.8                (1.2)

                                                           Used vehicle                                                                                     77.1                                        78.6                                       (1.5)               (1.9)         158.2           156.7                 1.5               1.0

                                                           Parts and service                                                                               253.4                                       245.2                                        8.2                 3.3          503.6           489.7                13.9               2.8
                                                           Finance and insurance                                                                           145.1                                       117.0                                       28.1                24.0          275.3           227.7                47.6              20.9
                                                           Other                                                                                             6.9                                         5.9                                        1.0                               14.4            13.5                 0.9

    Total gross profit                                                                                                                                     628.0                                       583.4                                       44.6                 7.6        1,231.0         1,149.6                81.4               7.1

    Selling, general and administrative expenses                                                                                                           438.6                                       417.6                                      (21.0)               (5.0)         871.5           825.3               (46.2)             (5.6)

    Depreciation and amortization                                                                                        20.8                                     21.1                                               0.3                                                     42.0           41.8                  (0.2)
    Franchise rights impairment                                                                                           4.2                                        -                                              (4.2)                                                     4.2              -                  (4.2)
    Other expenses (income), net                                                                                          0.2                                      0.3                                               0.1                                                      0.4           (1.9)                 (2.3)
                                                                                                                          ---                                      ---                                               ---                                                      ---           ----                  ----
     Operating income                                                                                                                                      164.2                                       144.4                                       19.8                13.7          312.9           284.4                28.5              10.0

    Non-operating income (expense) items:
                                                           Floorplan interest expense                                                                      (10.8)                                      (10.9)                                       0.1                              (21.5)          (22.1)                0.6
                                                           Other interest expense                                                                          (22.5)                                      (15.9)                                      (6.6)                             (43.0)          (32.2)              (10.8)
                                                           Interest income                                                                                   0.1                                         0.3                                       (0.2)                               0.2             0.6                (0.4)
                                                           Other income (loss), net                                                                         (1.4)                                        0.5                                       (1.9)                               0.6             2.2                (1.6)

    Income from continuing operations before income taxes                                                                                                 $129.6                                      $118.4                                      $11.2                 9.5         $249.2          $232.9               $16.3               7.0
                                                                                                                                                          ======                                      ======                                      =====                             ======          ======               =====

    Retail vehicle unit sales:
                                                              New                                                                                         66,987                                      51,824                                     15,163                29.3        128,503         107,534              20,969              19.5
                                                              Used                                                                                        46,236                                      42,833                                      3,403                 7.9         92,352          84,922               7,430               8.7

                                                                                                                                                         113,223                                      94,657                                     18,566                19.6        220,855         192,456              28,399              14.8
                                                                                                                                                         =======                                      ======                                     ======                            =======         =======              ======

    Revenue per vehicle retailed:
                                                              New                                                                                        $32,784                                     $33,703                                      $(919)               (2.7)       $32,609         $32,843               $(234)             (0.7)
                                                              Used                                                                                       $17,941                                     $18,350                                      $(409)               (2.2)       $17,656         $17,821               $(165)             (0.9)

    Gross profit per vehicle retailed:
                                                              New                                                                                         $2,172                                      $2,638                                      $(466)              (17.7)        $2,175          $2,436               $(261)            (10.7)
                                                              Used                                                                                        $1,624                                      $1,800                                      $(176)               (9.8)        $1,663          $1,777               $(114)             (6.4)
                                                              Finance and insurance                                                                       $1,282                                      $1,236                                        $46                 3.7         $1,247          $1,183                 $64               5.4





                                                                                                   Operating Percentages       Three Months Ended June 30,                    Six Months Ended June 30,
                                                                                                   ---------------------      ---------------------------                     -------------------------
                                                                                                                                                         2012 (%)                                    2011 (%)                                   2012 (%)            2011 (%)
                                                                                                                                                         -------                                     -------                                    -------             -------

    Revenue mix percentages:
                                                           New vehicle                                                                                      56.2                                        52.4                                       55.4                53.1
                                                           Used vehicle                                                                                     24.3                                        26.6                                       24.7                25.9
                                                           Parts and service                                                                                15.4                                        17.1                                       15.9                17.2
                                                           Finance and insurance, net                                                                        3.7                                         3.5                                        3.6                 3.4
                                                           Other                                                                                             0.4                                         0.4                                        0.4                 0.4
                                                                                                                                                           100.0                                       100.0                                      100.0               100.0
                                                                                                                                                           =====                                       =====                                      =====               =====

    Gross profit mix percentages:
                                                           New vehicle                                                                                      23.2                                        23.4                                       22.7                22.8
                                                           Used vehicle                                                                                     12.3                                        13.5                                       12.9                13.6
                                                           Parts and service                                                                                40.4                                        42.0                                       40.9                42.6
                                                           Finance and insurance                                                                            23.1                                        20.1                                       22.4                19.8
                                                           Other                                                                                             1.0                                         1.0                                        1.1                 1.2
                                                                                                                                                           100.0                                       100.0                                      100.0               100.0
                                                                                                                                                           =====                                       =====                                      =====               =====

    Operating items as a percentage of revenue:
                                                           Gross profit:
                                                              New vehicle                                                                                    6.6                                         7.8                                        6.7                 7.4
                                                              Used vehicle - retail                                                                          9.1                                         9.8                                        9.4                10.0
                                                              Parts and service                                                                             42.1                                        42.9                                       41.9                42.9
                                                              Total                                                                                         16.1                                        17.5                                       16.3                17.3
                                                           Selling, general and administrative expenses                                                     11.2                                        12.5                                       11.5                12.4
                                                           Operating income                                                                                  4.2                                         4.3                                        4.1                 4.3

    Operating items as a percentage of total gross profit:
                                                           Selling, general and administrative expenses                                                     69.8                                        71.6                                       70.8                71.8
                                                           Operating income                                                                                 26.1                                        24.8                                       25.4                24.7

                                                                                                                                                                                                                                                         AUTONATION, INC.
                                                                                                                                                                                                                                                   UNAUDITED SUPPLEMENTARY DATA
                                                                                                                                                                                                                                             ($ in millions, except per vehicle data)


                                                                                                                       Segment Operating Highlights                                                              Three Months Ended June 30,                                                            Six Months Ended June 30,
                                                                                                                       ----------------------------                                                              ---------------------------                                                           -------------------------
                                                                                                                                                                                                 2012                                         2011                                          $ Variance                                 % Variance           2012           2011           $ Variance        % Variance
                                                                                                                                                                                                 ----                                         ----                                          ----------                                 ----------           ----           ----           ----------        ----------


    Revenue:
                                                                                    Domestic                                                                                                                                       $1,295.1                                       $1,145.0                                     $150.1                 13.1       $2,524.2       $2,241.1             $283.1            12.6
                                                                                    Import                                                                                                                                          1,475.8                                        1,165.9                                      309.9                 26.6        2,842.4        2,423.4              419.0            17.3
                                                                                    Premium luxury                                                                                                                                  1,093.4                                          989.2                                      104.2                 10.5        2,115.6        1,907.2              208.4            10.9

                                                                                        Total segment revenue                                                                                                                      $3,864.3                                       $3,300.1                                     $564.2                 17.1       $7,482.2       $6,571.7             $910.5            13.9
                                                                                    Corporate and other                                                                                                                                40.2                                           36.2                                        4.0                 11.0           79.3           75.7                3.6             4.8
                                                                                        Total consolidated revenue                                                                                                                 $3,904.5                                       $3,336.3                                     $568.2                 17.0       $7,561.5       $6,647.4             $914.1            13.8



    *Segment income
                                                                                    Domestic                                                                                                                                          $53.6                                          $46.4                                       $7.2                 15.5         $103.3          $89.1              $14.2            15.9
                                                                                    Import                                                                                                                                             67.2                                           62.5                                        4.7                  7.5          129.1          117.4               11.7            10.0
                                                                                    Premium luxury                                                                                                                                     68.3                                           59.8                                        8.5                 14.2          127.1          117.4                9.7             8.3

                                                                                        Total segment income                                                                                                                          189.1                                          168.7                                       20.4                 12.1          359.5          323.9               35.6            11.0

    Corporate and other                                                                                                                                                         (35.7)                                                (35.2)                                          (0.5)                                                          (68.1)         (61.6)          (6.5)
    Add:  Floorplan interest expense                                                                                                                                             10.8                                                  10.9                                           (0.1)                                                           21.5           22.1           (0.6)
    Operating income                                                                                                                                                                                                                 $164.2                                         $144.4                                      $19.8                 13.7         $312.9         $284.4              $28.5            10.0
                                                                                                                                                                                                                                     ======                                         ======                                      =====                              ======         ======              =====

    * Segment income is defined as operating income less floorplan interest expense

    Retail new vehicle unit sales:
                                                                                    Domestic                                                                                                                                         21,993                                         18,751                                      3,242                 17.3         42,506         36,487              6,019            16.5
                                                                                    Import                                                                                                                                           33,715                                         23,366                                     10,349                 44.3         64,753         52,596             12,157            23.1
                                                                                    Premium luxury                                                                                                                                   11,279                                          9,707                                      1,572                 16.2         21,244         18,451              2,793            15.1
                                                                                                                                                                                                                                     66,987                                         51,824                                     15,163                 29.3        128,503        107,534             20,969            19.5
                                                                                                                                                                                                                                     ======                                         ======                                     ======                             =======        =======             ======


                                                                                                                Brand Mix - New Vehicle Retail Units Sold
                                                                                                                -----------------------------------------
                                                                                                                                                                                                          Three Months Ended June 30,                      Six Months Ended June 30,
                                                                                                                                                                                                          ---------------------------                      -------------------------
                                                                                                                                                                                                                                    2012 (%)                                       2011 (%)                                   2012 (%)             2011 (%)
                                                                                                                                                                                                                                    -------                                        -------                                    -------              -------

                                                                                    Domestic:
                                                                                       Ford, Lincoln                                                                                                                                   17.6                                           19.8                                       17.9                 18.4
                                                                                       Chevrolet, Buick, Cadillac, GMC                                                                                                                 11.4                                           12.9                                       11.4                 12.5
                                                                                       Chrysler, Jeep, Dodge                                                                                                                            3.8                                            3.5                                        3.8                  3.0
                                                                                         Domestic total                                                                                                                                32.8                                           36.2                                       33.1                 33.9


                                                                                    Import:
                                                                                       Honda                                                                                                                                           12.2                                           11.4                                       11.6                 12.2
                                                                                       Toyota                                                                                                                                          21.2                                           16.6                                       20.6                 18.2
                                                                                       Nissan                                                                                                                                          10.2                                            9.9                                       11.4                 11.4
                                                                                       Other imports(1)                                                                                                                                 6.8                                            7.2                                        6.8                  7.1
                                                                                         Import total                                                                                                                                  50.4                                           45.1                                       50.4                 48.9


                                                                                    Premium Luxury:
                                                                                       Mercedes-Benz                                                                                                                                    7.3                                            8.3                                        7.5                  7.5
                                                                                       BMW                                                                                                                                              4.5                                            5.3                                        4.2                  4.7
                                                                                       Lexus                                                                                                                                            2.0                                            1.6                                        2.0                  1.8
                                                                                       Other premium luxury (Audi, Land Rover,
                                                                                        Porsche)(1)                                                                                               3.0                                          3.5                                                 2.8                                         3.2
                                                                                         Premium Luxury total                                                                                                                          16.8                                           18.7                                       16.5                 17.2


                                                                                                                                                                                                                                      100.0                                          100.0                                      100.0                100.0
                                                                                                                                                                                                                                      =====                                          =====                                      =====                =====

                                                                                     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 have five Audi franchises for
                                                                                     which we reclassified revenue of $47.6 million and segment income of $3.2 million during the three months ended June
                                                                                (1)  30, 2011, and revenue of $87.3 million and segment income of $5.7 million during the six months ended June 30, 2011.

                                                                                                                                                                                                         AUTONATION, INC.
                                                                                                                                                                                             UNAUDITED SUPPLEMENTARY DATA, Continued
                                                                                                                                                                                              ($ in millions, except per share data)




                                                 Capital Expenditures / Stock Repurchases                     Three Months Ended June 30,                                            Six Months Ended June 30,
                                                 ----------------------------------------                    ---------------------------                                            -------------------------
                                                                                                                                     2012                                                                  2011                                                  2012                 2011
                                                                                                                                     ----                                                                  ----                                                  ----                 ----

         Capital expenditures(1)                                                                                                    $47.9                                                                 $38.9                                                 $77.0                $63.6
         Acquisitions                                                                                          $                        -                                         $                           -                                            $        -                $64.2
         Proceeds from exercises of stock options                                                                                    $1.4                                                                  $8.0                                                  $1.7                $39.9
         Stock repurchases:
                                                                                                                                   $126.2                                                                $110.9                                                $531.6               $169.7
                Aggregate purchase price
                                                                                                                                      3.7                                                                   3.4                                                  15.4                  5.1
                Shares repurchased (in millions)


                                                                                                                                    Three Months Ended June 30,                                                            Six Months Ended June 30,
                                                     Floorplan Assistance and Expense
                                                     --------------------------------
                                                                                                                                                                             2012                                                                    2011                Variance           2012        2011       Variance
                                                                                                                                                                             ----                                                                    ----                --------           ----        ----      --------


          Floorplan assistance earned (included in cost of
          sales)                                                                                                                    $18.5                                                                 $13.7                                                  $4.8                $35.7       $29.0       $6.7
         Floorplan interest expense (new vehicles)                                                                                  (10.3)                                                                (10.3)                                                    -                (20.7)      (20.8)       0.1
                                                                                                                                    -----                                                                 -----                                                   ---                -----       -----        ---

                                                                                                                                     $8.2                                                                  $3.4                                                  $4.8                $15.0        $8.2       $6.8
                Net new vehicle inventory carrying benefit




                                                    Balance Sheet and Other Highlights
                                                    ----------------------------------

                                                                                                                                                          June 30, 2012                                          December 31, 2011                                    June 30, 2011
                                                                                                                                                          -------------                                          -----------------                                    -------------

         Cash and cash equivalents                                                                                                  $62.1                                                                 $86.6                                                 $81.8
         Inventory                                                                                                               $2,077.7                                                              $1,809.2                                              $1,780.0
         Total floorplan notes payable                                                                                           $2,122.0                                                              $1,898.8                                              $1,673.0
         Non-vehicle debt                                                                                                        $2,028.5                                                              $1,647.0                                              $1,445.0
         Equity                                                                                                                  $1,528.2                                                              $1,894.6                                              $2,116.1
         New days supply (industry standard of selling
                                                                                                                                  60 days                                                               50 days                                               59 days
              days, including fleet)

         Used days supply (trailing calendar month days)(2)                                                                       31 days                                                               31 days                                               36 days




                                          Key Credit Agreement Covenant Compliance Calculations
                                          -----------------------------------------------------

         Ratio of funded indebtedness/
         Adjusted EBITDA                                                                                                                                                                                  3.05x
         Covenant                                                                                                              less than                                                                 3.75x
         --------                                                                                                              ---------                                                                 -----

         Ratio of funded indebtedness including floorplan/

         Total capitalization including floorplan                                                                                                                                                                                                    57.6%
         Covenant                                                                                                                                                       less than                                                                    65.0%
         --------                                                                                                                                                       ---------                                                                    ----


     (1) Includes accrued construction in progress and excludes property acquired under capital leases.

     (2)  As of December 31, 2011, we have revised our method of calculating used vehicle days supply from a
          dollar day supply to a unit day supply (including wholesale units). We have revised prior periods
          to conform to our revised method of calculation.

                                                                                                                                                  AUTONATION, INC.
                                                                                                                                       UNAUDITED SUPPLEMENTARY DATA, Continued
                                                                                                                                       ($ in millions, except per share data)




     Comparable Basis Reconciliations*
     --------------------------------
                                                                                                                                                              Three Months Ended June 30,
                                                                                                                                                              ---------------------------
                                                                                                                                                                  Net Income                    Diluted Earnings Per Share**
                                                                                                                                                                 ----------                     ---------------------------

                                                                                                                                                                                  2012                                  2011          2012          2011
                                                                                                                                                                                  ----                                  ----          ----          ----

     As reported                                                                                                                               $78.6                                      $71.9                              $0.64         $0.48

                                             Discontinued operations, net of income taxes                                                                                          0.4                                   1.4       $     -         $0.01
                                                                                                                                                                                   ---                                   ---
     From continuing operations, as reported                                                                                                    79.0                                       73.3                              $0.64         $0.49
                                             Franchise rights impairment                                                                                                           2.6                                     -         $0.02       $     -
                                                                                                                                                                                   ---                                   ---

     Adjusted                                                                                                                                  $81.6                                      $73.3                              $0.66         $0.49
                                                                                                                                               =====                                      =====


                                                                                                                                                             Six Months Ended June 30,
                                                                                                                                                             -------------------------
                                                                                                                                                                  Net Income                    Diluted Earnings Per Share**
                                                                                                                                                                 ----------                     ---------------------------

                                                                                                                                                                                  2012                                  2011          2012          2011
                                                                                                                                                                                  ----                                  ----          ----          ----

     As reported                                                                                                                              $151.6                                     $141.3                              $1.18         $0.94

                                             Discontinued operations, net of income taxes                                                                                          0.9                                   2.3         $0.01         $0.02
                                                                                                                                                                                   ---                                   ---
     From continuing operations, as reported                                                                                                   152.5                                      143.6                              $1.19         $0.95
                                             Franchise rights impairment                                                                                                           2.6                                     -         $0.02       $     -
                                                                                                                                                                                   ---                                   ---

     Adjusted                                                                                                                                 $155.1                                     $143.6                              $1.21         $0.95
                                                                                                                                              ======                                     ======

                                           * Please refer to the "Non-GAAP Financial Measures" section of the Press Release.
                                          **  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 June 30,                                                             Six Months Ended June 30,
                                                                            --------------------             ---------------------------                                                            -------------------------
                                                                                                 2012                                    2011                                    $ Variance                                         % Variance          2012          2011          $ Variance         % Variance
                                                                                                 ----                                    ----                                    ----------                                         ----------          ----          ----          ----------         ----------


    Revenue:
                                                New vehicle                                                                    $2,193.0                               $1,746.6                                              $446.4                25.6       $4,151.4      $3,531.7            $619.7              17.5
                                                  Retail used vehicle                                                             827.2                                  786.0                                                41.2                 5.2        1,616.4       1,513.4             103.0               6.8
                                                  Wholesale                                                                       116.6                                  101.3                                                15.3                15.1          227.5         205.3              22.2              10.8

                                                Used vehicle                                                                      943.8                                  887.3                                                56.5                 6.4        1,843.9       1,718.7             125.2               7.3
                                                Parts and service                                                                 601.1                                  572.0                                                29.1                 5.1        1,194.1       1,142.0              52.1               4.6
                                                Finance and insurance, net                                                        144.8                                  117.0                                                27.8                23.8          273.2         227.7              45.5              20.0
                                                Other                                                                              13.3                                   13.4                                                (0.1)                              27.0          27.3              (0.3)
    Total revenue                                                                                                              $3,896.0                               $3,336.3                                              $559.7                16.8       $7,489.6      $6,647.4            $842.2              12.7
                                                                                                                               ========                               ========                                              ======                           ========      ========            ======


    Gross profit:
                                                New vehicle                                                                      $145.2                                 $136.7                                                $8.5                 6.2         $276.9        $262.0             $14.9               5.7
                                                  Retail used vehicle                                                              75.0                                   77.1                                                (2.1)               (2.7)         152.2         150.9               1.3               0.9
                                                  Wholesale                                                                         2.0                                    1.5                                                 0.5                                4.6           5.8              (1.2)

                                                Used vehicle                                                                       77.0                                   78.6                                                (1.6)               (2.0)         156.8         156.7               0.1               0.1
                                                Parts and service                                                                 252.8                                  245.2                                                 7.6                 3.1          499.9         489.7              10.2               2.1
                                                Finance and insurance                                                             144.8                                  117.0                                                27.8                23.8          273.2         227.7              45.5              20.0
                                                Other                                                                               6.8                                    5.9                                                 0.9                               14.3          13.5               0.8

    Total gross profit                                                                                                           $626.6                                 $583.4                                               $43.2                 7.4       $1,221.1      $1,149.6             $71.5               6.2
                                                                                                                                 ======                                 ======                                               =====                           ========      ========             =====


    Retail vehicle unit sales:
                                                   New                                                                           66,828                                 51,824                                              15,004                29.0        127,155       107,534            19,621              18.2
                                                   Used                                                                          46,029                                 42,833                                               3,196                 7.5         91,524        84,922             6,602               7.8

                                                                                                                                112,857                                 94,657                                              18,200                19.2        218,679       192,456            26,223              13.6
                                                                                                                                =======                                 ======                                              ======                            =======       =======            ======

    Revenue per vehicle retailed:
                                                   New                                                                          $32,816                                $33,703                                               $(887)               (2.6)       $32,648       $32,843             $(195)             (0.6)
                                                   Used                                                                         $17,971                                $18,350                                               $(379)               (2.1)       $17,661       $17,821             $(160)             (0.9)

    Gross profit per vehicle retailed:
                                                   New                                                                           $2,173                                 $2,638                                               $(465)              (17.6)        $2,178        $2,436             $(258)            (10.6)
                                                   Used                                                                          $1,629                                 $1,800                                               $(171)               (9.5)        $1,663        $1,777             $(114)             (6.4)
                                                   Finance and insurance                                                         $1,283                                 $1,236                                                 $47                 3.8         $1,249        $1,183               $66               5.6





                                                                           Operating Percentages      Three Months Ended June 30,             Six Months Ended June 30,
                                                                           ---------------------      ---------------------------             -------------------------
                                                                                                                                2012 (%)                               2011 (%)                                            2012 (%)            2011 (%)
                                                                                                                                -------                                -------                                             -------             -------

    Revenue mix percentages:
                                                New vehicle                                                                        56.3                                   52.4                                                55.4                53.1
                                                Used vehicle                                                                       24.2                                   26.6                                                24.6                25.9
                                                Parts and service                                                                  15.4                                   17.1                                                15.9                17.2
                                                Finance and insurance, net                                                          3.7                                    3.5                                                 3.6                 3.4
                                                Other                                                                               0.4                                    0.4                                                 0.5                 0.4
                                                                                                                                  100.0                                  100.0                                               100.0               100.0
                                                                                                                                  =====                                  =====                                               =====               =====


    Gross profit mix percentages:
                                                New vehicle                                                                        23.2                                   23.4                                                22.7                22.8
                                                Used vehicle                                                                       12.3                                   13.5                                                12.8                13.6
                                                Parts and service                                                                  40.3                                   42.0                                                40.9                42.6
                                                Finance and insurance                                                              23.1                                   20.1                                                22.4                19.8
                                                Other                                                                               1.1                                    1.0                                                 1.2                 1.2
                                                                                                                                  100.0                                  100.0                                               100.0               100.0
                                                                                                                                  =====                                  =====                                               =====               =====


    Operating items as a percentage of revenue:
                                                Gross Profit:
                                                   New vehicle                                                                      6.6                                    7.8                                                 6.7                 7.4
                                                   Used vehicle - retail                                                            9.1                                    9.8                                                 9.4                10.0
                                                   Parts and service                                                               42.1                                   42.9                                                41.9                42.9
                                                   Total                                                                           16.1                                   17.5                                                16.3                17.3


SOURCE AutoNation, Inc.

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