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AutoNation Reports 2009 Fourth Quarter and Full Year Results
FORT LAUDERDALE, Fla., Feb 11, 2010 /PRNewswire via COMTEX/ -- Fourth quarter revenue increased 8%, new vehicle unit sales rose 7% over the prior yearFourth quarter adjusted EPS from continuing operations more than doubled compared to the prior year to $0.29 from $0.13Fourth quarter GAAP EPS from continuing operations was $0.36 versus $0.42 for the prior yearDespite a U.S. industry new vehicle sales decline of 22% in 2009, AutoNation's full-year adjusted EPS increased 14% to $1.15 from $1.01 for the prior year Full-year GAAP EPS was $1.32 compared to a loss per share of $6.82 for the prior year

AutoNation, Inc. (NYSE: AN),America's largest automotive retailer, today reported 2009 fourth quarter GAAP net income from continuing operations of $62 million or $0.36 per share, compared to $73 million or $0.42 per share for the prior year. In the fourth quarter of 2009, the Company had a benefit from a tax adjustment of $13 million or $0.07 per share. In the fourth quarter of 2008, the Company had a net benefit of $51 million or $0.29 per share, related primarily to favorable tax items and gains on the repurchase of senior notes. After adjusting for these items as disclosed in the attached financial tables, adjusted net income from continuing operations for the 2009 fourth quarter was $50 million or $0.29 per share, compared to $23 million or $0.13 per share for the prior year, a 123% increase on a per-share basis.

(Logo: http://www.newscom.com/cgi-bin/prnh/20001017/AUTONATIONLOGO )

Fourth quarter 2009 revenue totaled $2.8 billion, compared to $2.6 billion in the year-ago period, an 8% increase, driven primarily by stronger new vehicle unit sales which increased 7%. In the fourth quarter, total U.S. industry new vehicle retail unit sales increased 6%, based on CNW Research data.

Commenting on the fourth quarter, Mike Jackson, Chairman and Chief Executive Officer, said, "We delivered solid profitability in the fourth quarter, achieved our first year-over-year increase in new vehicle unit sales since the second quarter of 2005, and maintained the benefits of our actions taken in response to the economic downturn. By lowering our structural costs and debt levels and more efficiently managing our inventory, we were able to deliver solid EPS growth in a very difficult environment."

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. Segment results for the fourth quarter were as follows:

  • Domestic - Domestic segment income (1) was $26 million compared to year-ago segment income of $16 million. Fourth quarter Domestic retail new vehicle unit sales increased 6%.
  • Import - Import segment income was $41 million compared to year-ago segment income of $21 million. Fourth quarter Import retail new vehicle unit sales increased 8%.
  • Premium Luxury - Premium Luxury segment income was $48 million compared to year-ago segment income of $39 million. Fourth quarter Premium Luxury retail new vehicle unit sales increased 8%.

(1) Segment income is defined as operating income less floorplan interest expense.

For the full year ended December 31, 2009, the Company reported GAAP net income from continuing operations of $234 million or $1.32 per share, compared to a GAAP net loss from continuing operations of $1.2 billion or $6.82 per share for the prior year. After adjusting for certain items (including the goodwill and franchise rights impairment charges recorded in the prior year) as disclosed in the attached financial tables, adjusted net income from continuing operations for the full year ended December 31, 2009 was $204 million or $1.15 per share, compared to $180 million or $1.01 per share for the prior year. The Company's revenue for the full year ended December 31, 2009 totaled $10.8 billion, down 20% compared to $13.4 billion in the prior year.

Jackson also stated, "We responded to the dramatic decline in industry volumes, the Chrysler and GM bankruptcies, the credit crisis and staggering unemployment and delivered a full-year adjusted EPS increase of 14%. 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. "We agree with the view that volumes will be higher this year. Our planning assumption for 2010 industry new unit sales is 11.5 million units with a gradual increase in the selling rate over the course of the year."

The fourth quarter conference call may be accessed at 11:00 a.m. Eastern Time today by telephone at 888-769-8515 (pass code: AutoNation) or via the Internet (audio webcast) at http://www.AutoNation.com by clicking on the "About AutoNation" and then "Webcasts & Presentations." A playback of the conference call will be available after 12:00 (noon) p.m. Eastern Time February 11, 2010 through February 19, 2010 by calling 866-487-7599 (pass code: 75300).

About AutoNation, Inc.

AutoNation, Inc., headquartered in Fort Lauderdale, Fla., is America's largest automotive retailer and has been named America's Most Admired Automotive Retailer by FORTUNE Magazine in five of the last seven years. A component of the Standard and Poor's 500 Index, AutoNation owns and operates 246 new vehicle franchises in 15 states. For additional information, please visithttp://corp.AutoNation.com or www.AutoNation.com.

FORWARD LOOKING STATEMENTS

This news release contains both historical and forward-looking statements. All statements other than statements of historical fact, including statements that describe our objectives, plans or goals, are, or may be deemed to be, forward-looking statements under the securities laws. These 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; assumptions and expectations relating to financial covenants contained in our debt agreements; the success and financial viability of vehicle manufacturers and distributors with which we hold franchises; factors affecting our goodwill 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 and in our Quarterly Reports on Form 10-Q. 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 net income and diluted earnings per share from continuing operations, adjusted in each case to exclude certain items disclosed in the attached financial tables. As required by SEC rules, the Company has provided reconciliations of these measures to the most directly comparable GAAP measures, which are set forth in the attachments to this release. The Company believes that each of the foregoing non-GAAP financial measures improves the transparency of the Company's disclosure, provides 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 improves the period-to-period comparability of the Company's results from its core business operations.



                               AUTONATION, INC.
           UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                     ($ in millions, except per share data)


                           Three Months Ended           Twelve Months Ended
                               December 31,                  December 31,
                           2009             2008         2009            2008
                           ----             ----         ----            ----

    Revenue:
      New vehicle      $1,554.4         $1,366.0     $5,713.0        $7,405.6
      Used vehicle        639.3            602.7      2,508.8         3,148.9
      Parts and service   521.4            534.7      2,137.4         2,300.6
      Finance and
       insurance, net      89.3             80.6        351.2           460.2
      Other                10.6             13.0         47.4            61.1
                           ----             ----         ----            ----
    Total revenue       2,815.0          2,597.0     10,757.8        13,376.4
                        -------          -------     --------        --------

    Cost of sales:
      New vehicle       1,448.0          1,277.5      5,326.8         6,916.3
      Used vehicle        591.3            556.8      2,278.9         2,885.0
      Parts and service   294.1            301.3      1,202.7         1,297.8
      Other                 4.3              5.3         20.6            26.5
                            ---              ---         ----            ----
    Total cost of
     sales              2,337.7          2,140.9      8,829.0        11,125.6
                        -------          -------      -------        --------

    Gross profit          477.3            456.1      1,928.8         2,250.8

    Selling, general
     and administrative
     expenses             364.5            360.2      1,464.4         1,698.4
    Depreciation
     and amortization      19.0             21.0         77.5            85.0
    Goodwill impairment       -                -            -         1,610.0
    Franchise rights
     impairment               -                -          1.5           127.4
    Other expenses
     (income), net         (1.2)             6.8        (24.8)            9.7
                           ----              ---        -----             ---

    Operating income
     (loss)                95.0             68.1        410.2        (1,279.7)

    Floorplan interest
     expense               (9.3)           (20.0)       (36.1)          (81.1)
    Other interest
     expense              (10.2)           (20.1)       (42.6)          (89.4)
    Gain on senior
     note repurchases         -             39.2         13.0            51.3
    Interest income         0.2              0.7          1.1             2.2
    Other gains
     (losses), net          1.4             (1.8)         5.4            (4.7)
                            ---             ----          ---            ----

    Income (loss)
     from continuing
     operations
     before income
     taxes                 77.1             66.1        351.0        (1,401.4)

    Income tax provision
     (benefit)             14.7             (7.3)       116.8          (189.0)
                           ----             ----        -----          ------

    Net income (loss)
     from continuing
     operations            62.4             73.4        234.2        (1,212.4)

    Loss from discontinued
     operations, net of
     income taxes          (0.7)            (6.3)       (36.2)          (30.7)
                           ----             ----        -----           -----


    Net income (loss)     $61.7            $67.1       $198.0       $(1,243.1)
                          =====            =====       ======       =========

    Diluted earnings
     (loss) per share:
      Continuing
       operations         $0.36            $0.42        $1.32          $(6.82)
      Discontinued
       operations        $(0.00)          $(0.04)      $(0.20)         $(0.17)

      Net income (loss)   $0.35            $0.38        $1.12          $(6.99)


    Weighted average
     common shares
     outstanding          174.2            176.8        177.3           177.8

    Common shares
     outstanding,
     net of treasury
     stock, at
     December 31          171.7            176.9        171.7           176.9



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


    Operating Highlights              Three Months Ended December 31,
    --------------------    --------------------------------------------------
                              2009          2008         $Variance   %Variance
                              ----          ----         ---------   ---------

    Revenue:
      New vehicle           $1,554.4      $1,366.0          $188.4      13.8
        Retail used vehicle    559.0         523.8            35.2       6.7
        Wholesale               80.3          78.9             1.4       1.8
                                ----          ----             ---
      Used vehicle             639.3         602.7            36.6       6.1
                               -----         -----            ----
      Parts and service        521.4         534.7           (13.3)     (2.5)
      Finance and
       insurance, net           89.3          80.6             8.7      10.8
      Other                     10.6          13.0            (2.4)
                                ----          ----            ----
    Total revenue           $2,815.0      $2,597.0          $218.0       8.4
                            ========      ========          ======


    Gross profit:
      New vehicle             $106.4         $88.5           $17.9      20.2
        Retail used vehicle     48.2          49.7            (1.5)     (3.0)
        Wholesale               (0.2)         (3.8)            3.6
                                ----          ----             ---
      Used vehicle              48.0          45.9             2.1       4.6
                                ----          ----             ---
      Parts and service        227.3         233.4            (6.1)     (2.6)
      Finance and insurance     89.3          80.6             8.7      10.8
      Other                      6.3           7.7            (1.4)
                                 ---           ---            ----
    Total gross profit         477.3         456.1            21.2       4.6

    Selling, general and
     administrative expenses   364.5         360.2            (4.3)     (1.2)

    Depreciation and
     amortization               19.0          21.0             2.0
    Goodwill impairment            -             -               -
    Franchise rights impairment    -             -               -
    Other expenses
     (income), net              (1.2)          6.8             8.0
                                ----           ---             ---
     Operating income (loss)    95.0          68.1            26.9      39.5

    Floorplan interest
     expense                    (9.3)        (20.0)           10.7
    Other interest expense     (10.2)        (20.1)            9.9
    Gain on senior note
     repurchases                   -          39.2           (39.2)
    Interest income              0.2           0.7            (0.5)
    Other gains
     (losses), net               1.4          (1.8)            3.2
                                 ---          ----             ---
      Income (loss) from
       continuing operations
       before income taxes     $77.1         $66.1           $11.0      16.6
                               =====         =====           =====

    Retail vehicle unit sales:
         New                  46,532        43,379           3,153       7.3
         Used                 32,528        33,731          (1,203)     (3.6)
                              ------        ------          ------
                              79,060        77,110           1,950       2.5
                              ======        ======           =====
    Revenue per vehicle
     retailed:
         New                 $33,405       $31,490          $1,915       6.1
         Used                $17,185       $15,529          $1,656      10.7


    Gross profit per
     vehicle retailed:
         New                  $2,287        $2,040            $247      12.1
         Used                 $1,482        $1,473              $9       0.6
         Finance and
          insurance           $1,130        $1,045             $85       8.1



    Operating Highlights            Twelve Months Ended December 31,
    --------------------  ---------------------------------------------------

                            2009           2008         $Variance   %Variance
                            ----           ----         ---------   ---------


    Revenue:
      New vehicle         $5,713.0       $7,405.6        $(1,692.6)     (22.9)
        Retail used
         vehicle           2,204.7        2,653.2           (448.5)     (16.9)
        Wholesale            304.1          495.7           (191.6)     (38.7)
                             -----          -----           ------
      Used vehicle         2,508.8        3,148.9           (640.1)     (20.3)
                           -------        -------           ------
      Parts and service    2,137.4        2,300.6           (163.2)      (7.1)
      Finance and
       insurance, net        351.2          460.2           (109.0)     (23.7)
      Other                   47.4           61.1            (13.7)
                              ----           ----            -----
    Total revenue        $10,757.8      $13,376.4        $(2,618.6)     (19.6)
                         =========      =========        =========


    Gross profit:
      New vehicle           $386.2         $489.3          $(103.1)     (21.1)
        Retail used vehicle  225.2          270.7            (45.5)     (16.8)
        Wholesale              4.7           (6.8)            11.5
                               ---           ----             ----
      Used vehicle           229.9          263.9            (34.0)     (12.9)
                             -----          -----            -----
      Parts and service      934.7        1,002.8            (68.1)      (6.8)
      Finance and insurance  351.2          460.2           (109.0)     (23.7)
      Other                   26.8           34.6             (7.8)
                              ----           ----             ----
    Total gross profit     1,928.8        2,250.8           (322.0)     (14.3)

    Selling, general
     and administrative
     expenses              1,464.4        1,698.4            234.0       13.8

    Depreciation and
     amortization             77.5           85.0              7.5
    Goodwill impairment          -        1,610.0          1,610.0
    Franchise rights
     impairment                1.5          127.4            125.9
    Other expenses
     (income), net           (24.8)           9.7             34.5
                             -----            ---             ----
     Operating income
      (loss)                 410.2       (1,279.7)         1,689.9         NM

    Floorplan interest
     expense                 (36.1)         (81.1)            45.0
    Other interest expense   (42.6)         (89.4)            46.8
    Gain on senior
     note repurchases         13.0           51.3            (38.3)
    Interest income            1.1            2.2             (1.1)
    Other gains
     (losses), net             5.4           (4.7)            10.1
                               ---           ----             ----
      Income (loss) from
       continuing
       operations before
       income taxes         $351.0      $(1,401.4)        $1,752.4         NM
                            ======      =========         ========

    Retail vehicle
     unit sales:
         New               183,372        243,953          (60,581)     (24.8)
         Used              135,302        169,031          (33,729)     (20.0)
                           -------        -------          -------
                           318,674        412,984          (94,310)     (22.8)
                           =======        =======          =======

    Revenue per vehicle
     retailed:
         New               $31,155        $30,357             $798        2.6
         Used              $16,295        $15,697             $598        3.8


    Gross profit per
     vehicle retailed:
         New                $2,106         $2,006             $100        5.0
         Used               $1,664         $1,601              $63        3.9
         Finance and
          insurance         $1,102         $1,114             $(12)      (1.1)



                            Three Months Ended      Twelve Months Ended
    Operating Percentages      December 31,              December 31,
    ---------------------   ------------------      -------------------
                           2009 (%)      2008 (%)  2009 (%)      2008 (%)
                           -------       -------   -------       -------

    Revenue mix percentages:
      New vehicle           55.2           52.6     53.1           55.4
      Used vehicle          22.7           23.2     23.3           23.5
      Parts and service     18.5           20.6     19.9           17.2
      Finance and
       insurance, net        3.2            3.1      3.3            3.4
      Other                  0.4            0.5      0.4            0.5
                             ---            ---      ---            ---
                           100.0          100.0    100.0          100.0
                           =====          =====    =====          =====

    Gross profit mix
     percentages:
      New vehicle           22.3           19.4     20.0           21.7
      Used vehicle          10.1           10.1     11.9           11.7
      Parts and service     47.6           51.2     48.5           44.6
      Finance and insurance 18.7           17.7     18.2           20.4
      Other                  1.3            1.6      1.4            1.6
                             ---            ---      ---            ---
                           100.0          100.0    100.0          100.0
                           =====          =====    =====          =====

    Operating items as a
     percentage of revenue:
      Gross profit:
         New vehicle         6.8            6.5      6.8            6.6
         Used vehicle -
          retail             8.6            9.5     10.2           10.2
         Parts and service  43.6           43.7     43.7           43.6
         Total              17.0           17.6     17.9           16.8
      Selling, general
       and administrative
       expenses             12.9           13.9     13.6           12.7
      Operating income
       (loss)                3.4            2.6      3.8             NM

    Operating items as a
     percentage of total
     gross profit:
      Selling, general
       and administrative
       expenses             76.4           79.0     75.9           75.5
      Operating income
       (loss)               19.9           14.9     21.3             NM

      NM = Not Meaningful



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


    Segment Operating Highlights        Three Months Ended December 31,
    ---------------------------- ---------------------------------------------

                                 2009          2008     $Variance    %Variance
                                 ----          ----     ---------    ---------

    Revenue:
      Domestic                  $892.8        $847.6       $45.2         5.3
      Import                   1,035.0         948.4        86.6         9.1
      Premium luxury             859.9         778.8        81.1        10.4
      Corporate and other         27.3          22.2         5.1        23.0
                                  ----          ----         ---
    Total revenue             $2,815.0      $2,597.0      $218.0         8.4
                              ========      ========      ======

    *Segment income (loss)
      Domestic                   $25.5         $15.5       $10.0        64.5
      Import                      41.2          20.7        20.5        99.0
      Premium luxury              48.4          38.6         9.8        25.4
      Corporate and other        (29.4)        (26.7)       (2.7)
                                 -----         -----        ----
    Total segment income (loss)   85.7          48.1        37.6        78.2

    Add: Floorplan interest
     expense                       9.3          20.0       (10.7)

    Operating income (loss)      $95.0         $68.1       $26.9        39.5
                                 =====         =====       =====


    * Segment income (loss) is defined as operating income net of floorplan
    interest expense

    Retail new vehicle
     unit sales:
      Domestic                  13,735        12,904         831         6.4
      Import                    23,601        21,959       1,642         7.5
      Premium luxury             9,196         8,516         680         8.0
                                 -----         -----         ---
                                46,532        43,379       3,153         7.3
                                ======        ======       =====



    Segment Operating Highlights       Twelve Months Ended December 31,
    ---------------------------- ---------------------------------------------

                                2009          2008      $Variance   %Variance
                                ----          ----      ---------    ---------

    Revenue:
      Domestic                $3,450.2      $4,356.6     $(906.4)      (20.8)
      Import                   4,126.0       5,280.5    (1,154.5)      (21.9)
      Premium luxury           3,073.1       3,629.5      (556.4)      (15.3)

      Corporate and other        108.5         109.8        (1.3)       (1.2)
                                 -----         -----        ----
    Total revenue            $10,757.8     $13,376.4   $(2,618.6)      (19.6)
                             =========     =========   =========


    *Segment income (loss)
      Domestic                  $105.5        $109.1       $(3.6)       (3.3)
      Import                     175.1         184.5        (9.4)       (5.1)
      Premium luxury             175.5         183.7        (8.2)       (4.5)
      Corporate and other        (82.0)     (1,838.1)    1,756.1
                                 -----      --------     -------
    Total segment income
     (loss)                      374.1      (1,360.8)    1,734.9          NM

    Add: Floorplan interest
     expense                      36.1          81.1       (45.0)

    Operating income (loss)     $410.2     $(1,279.7)   $1,689.9          NM
                                ======     =========    ========


    * Segment income (loss) is defined as operating income net of floorplan
    interest expense

    Retail new vehicle
     unit sales:
      Domestic                  53,435        71,163     (17,728)      (24.9)
      Import                    98,015       132,662     (34,647)      (26.1)
      Premium luxury            31,922        40,128      (8,206)      (20.4)
                                ------        ------      ------
                               183,372       243,953     (60,581)      (24.8)
                               =======       =======     =======



    Brand Mix - New Vehicle Retail Units Sold
    -----------------------------------------

                           Three Months Ended         Twelve Months Ended
                              December 31,                December 31,
                         ---------------------     -----------------------
                          2009 (%)     2008 (%)     2009 (%)       2008 (%)
                         --------      --------    --------       --------

    Domestic:
       Ford, Lincoln-
        Mercury             15.0          15.1       14.7           13.6
       Chevrolet,
        Pontiac, Buick,
        Cadillac, GMC       12.4          11.1       11.4           11.9
       Chrysler, Jeep,
        Dodge                2.1           3.5        3.0            3.7
                             ---           ---        ---            ---
         Domestic total     29.5          29.7       29.1           29.2
                            ----          ----       ----           ----

    Import:
       Honda                12.3          12.9       14.1           14.2
       Toyota               19.6          21.6       20.0           22.0
       Nissan               12.2           9.8       12.6           12.3
       Other imports         6.6           6.4        6.8            5.9
                             ---           ---        ---            ---
         Import total       50.7          50.7       53.5           54.4
                            ----          ----       ----           ----

    Premium Luxury:
       Mercedes              9.3           8.6        8.3            7.2
       BMW                   5.3           6.0        4.7            4.9
       Lexus                 3.6           3.1        2.8            2.9
       Other premium
        luxury (Land Rover,
        Porsche)            1.6           1.9        1.6            1.4
                            ---           ---        ---            ---
         Premium Luxury
          total             19.8          19.6       17.4           16.4
                            ----          ----       ----           ----
                           100.0         100.0      100.0          100.0
                           =====         =====      =====          =====

    NM = Not Meaningful



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


    Capital Expenditures / Stock  Three Months Ended   Twelve Months Ended
     and Debt Repurchases            December 31,          December 31,
    ----------------------------  ------------------   -------------------
                                    2009       2008      2009          2008
                                    ----       ----      ----          ----

    Capital expenditures           $35.0      $13.7     $75.5        $110.4
    Acquisitions                      $-       $2.8      $0.2         $32.2
    Proceeds from exercises of
     stock options                  $1.3         $-     $24.8          $1.0
    Senior note repurchases
     (aggregate principal)            $-     $144.8     $88.4        $232.9
    Stock repurchases:
      Aggregate purchase price     $69.9         $-    $136.1         $54.1
       Shares repurchased (in
       millions)                     4.0          -       7.7           3.8



    Floorplan Assistance     Three Months Ended        Twelve Months Ended
       and Expense                December 31,             December 31,
    --------------------   ------------------------   ------------------------
                           2009    2008    Variance   2009     2008   Variance
                           ----    ----    --------   ----     ----   --------

     Floorplan assistance
      earned (included
      in cost of sales)   $13.0    $11.2     $1.8    $47.8    $65.5    $(17.7)
     Floorplan interest
      expense (new
      vehicles)            (8.7)   (18.5)     9.8    (33.9)   (77.4)     43.5
                           ----    -----      ---    -----    -----      ----
      Net inventory
       carrying benefit
       (cost)              $4.3    $(7.3)   $11.6    $13.9   $(11.9)    $25.8
                           ====    =====    =====    =====   ======     =====



    Balance Sheet and Other Highlights  December 31, 2009 December 31, 2008
    ----------------------------------  ----------------- -----------------

    Cash and cash equivalents                 $173.7             $110.2
    Inventory                               $1,408.3           $1,758.1
    Total floorplan notes payable           $1,388.0           $1,813.5
    Non-vehicle debt                        $1,112.6           $1,258.9
    Equity                                  $2,303.2           $2,198.1
    New days supply (industry
     standard of selling days,
     including fleet)                        54 days            83 days

    Used days supply (trailing 30 days)      41 days            30 days



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


    Comparable Basis Reconciliations*
    ---------------------------------

                                   Three Months Ended December 31,
                         -----------------------------------------------------

                          Net Income (Loss)  Diluted Earnings (Loss) Per Share
                         ------------------  ---------------------------------


                         2009          2008       2009            2008
                         ----          ----       ----            ----

    As reported         $61.7         $67.1      $0.35           $0.38

      Discontinued
       operations, net
       of income taxes    0.7           6.3      $0.00           $0.04
                          ---           ---
    From continuing
     operations,
     as reported         62.4          73.4      $0.36           $0.42

      Income tax
       adjustments      (12.7)        (31.9)    $(0.07)         $(0.18)
      Gain on senior
       note repurchases     -         (24.1)        $-          $(0.14)
      Property and other
       impairments**        -           5.5         $-           $0.03
                          ---           ---

    Adjusted            $49.7         $22.9      $0.29           $0.13
                        =====         =====



                                  Twelve Months Ended December 31,
                        ------------------------------------------------------
                          Net Income (Loss)  Diluted Earnings (Loss) Per Share
                        -------------------  ---------------------------------
                        2009           2008       2009           2008
                        ----           ----       ----           ----

    As reported        $198.0     $(1,243.1)     $1.12          $(6.99)

      Discontinued
       operations, net
       of income taxes   36.2          30.7      $0.20           $0.17
                         ----          ----
    From continuing
     operations,
     as reported        234.2      (1,212.4)     $1.32          $(6.82)

      Income tax
       adjustments      (12.7)        (31.9)    $(0.07)         $(0.18)
      Net gain on
       asset sales
       and dispositions (10.4)            -     $(0.06)             $-
      Gain on senior
       note repurchases  (8.1)        (31.5)    $(0.05)         $(0.18)
      Property and other
       impairments**      1.1           5.5      $0.01           $0.03
      Impairment of
       goodwill and
       franchise
       rights***            -       1,447.4         $-           $8.14
      Stock compensation
       expense adjustment   -           3.2         $-           $0.02
                          ---           ---

    Adjusted           $204.1        $180.3      $1.15           $1.01
                       ======        ======

    *   Please refer to the "Non-GAAP Financial Measures" section of the Press
        Release.

    **  Property and other impairments for the three months ended March 31,
        2009 totaled $4.8 million after-tax, of which $4.5 million has been
        reclassified to loss from discontinued operations since they related
        to dealerships classified as discontinued operations during 2009.
        Property and other impairments for the three and twelve months ended
        December 31, 2008 totaled $7.6 million after-tax, of which $2.0
        million has been reclassified to loss from discontinued operations
        since they related to dealerships classified as discontinued
        operations during 2009.

    *** Goodwill and franchise impairments for the twelve months ended
        December 31, 2008, totaled $1.46 billion after-tax.  Franchise
        impairments of $11.7 million after-tax during the twelve months
        ended December 31, 2008, have been reclassified to loss from
        discontinued operations since they related to dealerships classified
        as discontinued operations during 2009.



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

    Operating Highlights          Three Months Ended December 31,
    --------------------  ---------------------------------------------------

                          2009           2008           $Variance   %Variance
                          ----           ----           ---------   ---------


    Revenue:
      New vehicle      $1,554.4        $1,357.7           $196.7       14.5
        Retail used
         vehicle          559.1           516.9             42.2        8.2
        Wholesale          80.3            77.5              2.8        3.6
                           ----            ----              ---
      Used vehicle        639.4           594.4             45.0        7.6
      Parts and
       service            521.1           528.9             (7.8)      (1.5)
      Finance and
       insurance, net      89.3            80.1              9.2       11.5
      Other                10.5            11.4             (0.9)
                           ----            ----             ----
    Total revenue      $2,814.7        $2,572.5           $242.2        9.4
                       ========        ========           ======


    Gross profit:
      New vehicle        $106.5           $88.1            $18.4       20.9
        Retail used
         vehicle           48.3            48.9             (0.6)      (1.2)
        Wholesale          (0.1)           (3.7)             3.6
                           ----            ----              ---
      Used vehicle         48.2            45.2              3.0        6.6
      Parts and
       service            227.1           231.3             (4.2)      (1.8)
      Finance and
       insurance           89.3            80.1              9.2       11.5
      Other                 6.2             7.3             (1.1)
                            ---             ---             ----
    Total gross profit   $477.3          $452.0            $25.3        5.6
                         ======          ======            =====



    Retail vehicle
     unit sales:
         New             46,532          43,125            3,407        7.9
         Used            32,528          33,213             (685)      (2.1)
                         ------          ------             ----
                         79,060          76,338            2,722        3.6
                         ======          ======            =====

    Revenue per
     vehicle
     retailed:
         New            $33,405         $31,483           $1,922        6.1
         Used           $17,188         $15,563           $1,625       10.4

    Gross profit
     per vehicle
     retailed:
         New             $2,289          $2,043             $246       12.0
         Used            $1,485          $1,472              $13        0.9
         Finance and
          insurance      $1,130          $1,049              $81        7.7



    Operating Highlights             Twelve Months Ended December 31,
    -------------------- --------------------------------------------------

                         2009            2008         $Variance   %Variance
                         ----            ----         ---------   ---------


    Revenue:
      New vehicle      $5,678.9        $7,353.8       $(1,674.9)     (22.8)
        Retail used
         vehicle        2,188.7         2,616.5          (427.8)     (16.4)
        Wholesale         300.1           487.3          (187.2)     (38.4)
                          -----           -----          ------
      Used vehicle      2,488.8         3,103.8          (615.0)     (19.8)
      Parts and
       service          2,126.4         2,266.0          (139.6)      (6.2)
      Finance and
       insurance, net     349.7           456.4          (106.7)     (23.4)
      Other                45.4            57.6           (12.2)
                           ----            ----           -----
    Total revenue     $10,689.2       $13,237.6       $(2,548.4)     (19.3)
                      =========       =========       =========


    Gross profit:
      New vehicle        $384.5          $486.4         $(101.9)     (20.9)
        Retail used
         vehicle          223.1           266.2           (43.1)     (16.2)
        Wholesale           4.9            (6.5)           11.4
                            ---            ----            ----
      Used vehicle        228.0           259.7           (31.7)     (12.2)
      Parts and
       service            930.0           990.9           (60.9)      (6.1)
      Finance and
       insurance          349.7           456.4          (106.7)     (23.4)
      Other                26.1            33.8            (7.7)
                           ----            ----            ----
    Total gross
     profit            $1,918.3        $2,227.2         $(308.9)     (13.9)
                       ========        ========         =======



    Retail vehicle
     unit sales:
         New            182,635         242,384         (59,749)     (24.7)
         Used           134,422         166,380         (31,958)     (19.2)
                        -------         -------         -------
                        317,057         408,764         (91,707)     (22.4)
                        =======         =======         =======

    Revenue per
     vehicle
     retailed:
         New            $31,094         $30,339            $755        2.5
         Used           $16,282         $15,726            $556        3.5

    Gross profit
     per vehicle
     retailed:
         New             $2,105          $2,007             $98        4.9
         Used            $1,660          $1,600             $60        3.8
         Finance and
          insurance      $1,103          $1,117            $(14)      (1.3)



                             Three Months Ended       Twelve Months Ended
    Operating Percentages        December 31,              December 31,
    ---------------------    ------------------       -------------------
                            2009 (%)      2008 (%)    2009 (%)       2008 (%)
                            -------       -------     -------        -------

    Revenue mix percentages:
      New vehicle           55.2            52.8      53.1              55.6
      Used vehicle          22.7            23.1      23.3              23.4
      Parts and service     18.5            20.6      19.9              17.1
      Finance and
       insurance, net        3.2             3.1       3.3               3.4
      Other                  0.4             0.4       0.4               0.5
                             ---             ---       ---               ---
                           100.0           100.0     100.0             100.0
                           =====           =====     =====             =====

    Gross profit mix
     percentages:
      New vehicle           22.3            19.5      20.0              21.8
      Used vehicle          10.1            10.0      11.9              11.7
      Parts and service     47.6            51.2      48.5              44.5
      Finance and
       insurance            18.7            17.7      18.2              20.5
      Other                  1.3             1.6       1.4               1.5
                             ---             ---       ---               ---
                           100.0           100.0     100.0             100.0
                           =====           =====     =====             =====

    Operating items
     as a percentage
     of revenue:
      Gross Profit:
         New vehicle         6.9             6.5       6.8               6.6
         Used vehicle -
          retail             8.6             9.5      10.2              10.2
         Parts and service  43.6            43.7      43.7              43.7
         Total              17.0            17.6      17.9              16.8



                                     AUTONATION, INC.
                  KEY CREDIT AGREEMENT COVENANT COMPLIANCE CALCULATIONS
                                    December 31, 2009


    ($ millions)

    Income Statement information for the last twelve months
    (January 1, 2009 - December 31, 2009):

    Net income (loss) from continuing operations                     $234.2

    Floorplan and other interest expense                               78.7

    Income tax provision (benefit)                                    116.8

    Depreciation and amortization                                      77.5

    Stock-based compensation expense (SFAS No. 123R)                   13.5

    Impairment charges (including goodwill, franchise rights,
     and long-lived assets)                                             3.3
                                                                   --------
    EBITDA                                                            524.0

    Floorplan interest expense                                        (36.1)
                                                                   --------
    Adjusted EBITDA                                                  $487.9
                                                                   ========

    As of December 31, 2009:

    Funded indebtedness (primarily comprised of current and
     long-term debt and letters of credit)                         $1,177.8

    Vehicle secured indebtedness (floorplan payables)               1,388.0
                                                                   --------
    Funded indebtedness including floorplan                         2,565.8

    Shareholders' equity                                            2,303.2
                                                                   --------
    Total capitalization including floorplan                       $4,869.0
                                                                   ========

    Ratio of funded indebtedness/
    Adjusted EBITDA                                                    2.41

    Covenant                                             less than     2.75

    Ratio of funded indebtedness including floorplan/
    Total capitalization including floorplan                           52.7%

    Covenant                                             less than     65.0%


SOURCE AutoNation, Inc.

Media Contact

Marc Cannon
Executive Vice President
Chief Marketing Officer, Communications and Public Policy
Phone: 954.769.3146
cannonm@autonation.com

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