PR Newswire -- July 22, 2010

FORT LAUDERDALE, Fla., July 22 /PRNewswire-FirstCall/ --

-- 20% growth in second quarter revenue and retail vehicle unit sales over
the prior year
-- Second quarter adjusted EPS from continuing operations was $0.38 ($0.31
on a GAAP basis), a 36% increase compared to $0.28 in the prior year
($0.30 on a GAAP basis)
-- AutoNation repurchased 20.9 million shares of its common stock for
$414.4 million in the second quarter and on July 20 the Board of
Directors authorized the repurchase of up to an additional $250 million
of AutoNation common stock
-- AutoNation announces the acquisition of Toyota Mall of Georgia, one of
the largest Toyota stores in the United States, and two Hyundai stores,
one in Atlanta and the other in Seattle.

AutoNation, Inc. (NYSE: AN), America's largest automotive retailer, today reported 2010 second quarter adjusted net income from continuing operations of
$62 million or $0.38 per share compared to adjusted net income of $50 million or
$0.28 per share for the same period in the prior year, a 36% improvement on a per-share basis. Adjusted net income for the second quarter of 2010 excludes debt refinancing costs of $12 million after-tax, or $0.07 per share and for 2009 a gain on asset sales of $4 million after-tax, or $0.02 per share. On a GAAP basis, 2010 second quarter net income from continuing operations was $50 million or $0.31 per share, compared to 2009 second quarter net income from continuing operations of $54 million or $0.30 per share.

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

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AutoNation's 2010 second quarter revenue totaled $3.1 billion, compared to $2.6 billion in the year-ago period, an increase of 20%, driven primarily by stronger new and used retail vehicle revenue which increased 25%. Based on CNW Research data, in the second quarter, total U.S. industry new retail vehicle unit sales increased 12%. AutoNation's new vehicle unit sales increased 20%.

AutoNation's 2010 second quarter used retail vehicle revenue increased 28% compared to the year-ago period, as retail unit sales increased 20% and revenue per vehicle retailed increased 7%. Parts and service revenue increased 3% and finance and insurance revenue increased 18% compared to the second quarter 2009.

Mike Jackson, Chairman and Chief Executive Officer, said, "We delivered strong double-digit growth in the second quarter, which was driven by both new and used vehicle unit sales and revenue. We continue to expect full year industry new vehicle unit sales to be in the range of 11.5 million new units. We expect third quarter new vehicle industry sales will equal or surpass third quarter 2009 new vehicle industry sales even though the prior year included the highly successful Cash for Clunkers program. We continue to see a solid automotive recovery going forward."

AutoNation repurchased 20.9 million shares of its common stock in the second quarter for $414.4 million ($19.83 per share). On July 20, 2010, the Board of Directors authorized the repurchase of up to an additional $250 million of AutoNation common stock. As of such date, AutoNation had utilized substantially all of the amounts previously approved by its Board of Directors under its existing share repurchase program. As a result of the share buybacks, AutoNation had 149.3 million shares outstanding at the end of the second quarter, down from
169.9 million at the end of the first quarter. There are currently 146.4 million shares outstanding.

AutoNation also announced that it has signed agreements to acquire Toyota Mall of Georgia and Hyundai Mall of Georgia in the Atlanta market and that it recently completed the acquisition of Hyundai of Seattle. Toyota Mall of Georgia, which includes Scion, is one of the largest Toyota dealerships in the United States. The annual revenue run rate for all three acquisitions is approximately $200 million. The acquisitions of Toyota Mall of Georgia and Hyundai Mall of Georgia are subject to customary closing conditions and are expected to be completed in third quarter 2010.

Mr. Jackson stated, "We believe that we have a compelling opportunity to create significant value for stockholders over the next several years as the industry recovers. Our stock repurchases, together with the acquisitions that we announced, reflect our confidence in AutoNation's financial and operating strength and the long-term prospects in the auto industry. The combination of these drivers presents a significant long term growth and value creation opportunity."

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 second quarter were as follows:

-- Domestic - Domestic segment income (1) was $41 million compared to
year-ago segment income of $24 million. Second quarter Domestic retail
new vehicle unit sales increased 30%. We had a solid performance from
our domestic stores, especially Ford and Chevrolet.

-- Import - Import segment income was $52 million compared to year-ago
segment income of $42 million. Second quarter Import retail new vehicle
unit sales increased 16%.

-- Premium Luxury - Premium Luxury segment income was $49 million compared
to year-ago segment income of $43 million. Second quarter Premium Luxury
retail new vehicle unit sales increased 15%.

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

For the six-month period ended June 30, 2010, the Company reported adjusted net income from continuing operations of $121 million or $0.72 per share compared to $90 million or $0.51 for the same period in the prior year. Adjusted net income excludes refinancing costs of $12 million after-tax, or $0.07 per share, for the first half of 2010, and a net benefit of $17 million after-tax, or $0.09 per share, primarily related to a net gain on asset sales and a gain on senior note repurchases for the first half of 2009. On a GAAP basis, net income from continuing operations for the six-month period ended June 30, 2010 was $108 million or $0.65 per share compared to $107 million or $0.60 per share for prior year period. The Company's revenue for the six-month period ended June 30, 2010 totaled $6.0 billion, up 19% compared to $5.0 billion in the prior year.

The second quarter conference call may be accessed by telephone at 888-769-8515
(password: AutoNation). The webcast will be available on AutoNation's investor relations website at corp.autonation.com/investors under "Webcasts & Presentations." A playback of the conference call will be available after 1:00 p.m. Eastern Time on July 22, 2010 through July 30, 2010 by calling 800-944-3031
(password: 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 five times. A component of the Standard and Poor's 500 Index, AutoNation owns and operates 249 new vehicle franchises in 15 states.
For additional information, please visit corp.AutoNation.comorwww.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, including total industry new vehicle unit sales for 2010, and pending acquisitions, as well as other 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 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 Six Months Ended
June 30, June 30,
2010 2009 2010 2009
---- ---- ---- ----

Revenue:
New vehicle $1,658.3 $1,334.3 $3,121.1 $2,517.0
Used vehicle 785.3 629.2 1,517.9 1,217.9
Parts and service 548.5 533.7 1,087.2 1,067.7
Finance and insurance, net 104.9 88.6 200.4 165.1
Other 12.0 11.6 23.7 24.9
---- ---- ---- ----
Total revenue 3,109.0 2,597.4 5,950.3 4,992.6
------- ------- ------- -------

Cost of sales:
New vehicle 1,549.4 1,248.6 2,909.0 2,357.7
Used vehicle 715.8 571.2 1,382.0 1,096.5
Parts and service 308.8 299.4 610.1 598.8
Other 4.8 4.5 9.6 10.6
--- --- --- ----
Total cost of sales 2,578.8 2,123.7 4,910.7 4,063.6
------- ------- ------- -------

Gross profit 530.2 473.7 1,039.6 929.0

Selling, general and
administrative expenses 384.2 362.1 758.7 713.5
Depreciation and amortization 19.6 19.0 38.5 38.7
Franchise rights impairment - 1.5 - 1.5
Other expenses (income), net 0.5 (9.8) 1.7 (20.6)
--- ---- --- -----

Operating income 125.9 100.9 240.7 195.9

Floorplan interest expense (9.8) (9.3) (19.5) (19.1)
Other interest expense (14.7) (10.5) (23.7) (22.3)
Loss on debt extinguishment (19.6) - (19.6) -
Gain on senior note repurchases - 0.6 - 12.5
Interest income 0.3 0.3 0.5 0.6
Other gains (losses), net (0.3) 3.5 (0.5) 1.9
---- --- ---- ---

Income from continuing operations
before income taxes 81.8 85.5 177.9 169.5

Income tax provision 31.9 31.5 69.5 62.9
---- ---- ---- ----

Net income from continuing
operations 49.9 54.0 108.4 106.6

Loss from discontinued operations,
net of income taxes (2.7) (17.3) (6.0) (35.3)
---- ----- ---- -----

Net income $47.2 $36.7 $102.4 $71.3
===== ===== ====== =====

Diluted earnings (loss) per share:
Continuing operations $0.31 $0.30 $0.65 $0.60
Discontinued operations $(0.02) $(0.10) $(0.04) $(0.20)

Net income $0.29 $0.21 $0.61 $0.40

Weighted average common shares
outstanding 163.2 178.8 167.4 178.0

Common shares outstanding, net of
treasury stock, at June 30 149.3 178.0 149.3 178.0

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

Operating Highlights Three Months Ended June 30,
-------------------- ---------------------------
2010 2009 $Variance % Variance
---- ---- --------- ----------

Revenue:
New vehicle $1,658.3 $1,334.3 $324.0 24.3
Retail used vehicle 704.7 551.3 153.4 27.8
Wholesale 80.6 77.9 2.7 3.5
---- ----
Used vehicle 785.3 629.2 156.1 24.8
----- ----- -----
Parts and service 548.5 533.7 14.8 2.8
Finance and insurance, net 104.9 88.6 16.3 18.4
Other 12.0 11.6 0.4
---- ---- ---
Total revenue $3,109.0 $2,597.4 $511.6 19.7
======== ======== ======

Gross profit:
New vehicle $108.9 $85.7 $23.2 27.1
Retail used vehicle 65.9 56.5 9.4 16.6
Wholesale 3.6 1.5 2.1
Used vehicle 69.5 58.0 11.5 19.8
---- ---- ----
Parts and service 239.7 234.3 5.4 2.3
Finance and insurance 104.9 88.6 16.3 18.4
Other 7.2 7.1 0.1
--- --- ---
Total gross profit 530.2 473.7 56.5 11.9

Selling, general and
administrative expenses 384.2 362.1 (22.1) (6.1)

Depreciation and amortization 19.6 19.0 (0.6)
Franchise rights impairment - 1.5 1.5
Other expenses (income), net 0.5 (9.8) (10.3)
--- ---- -----
Operating income 125.9 100.9 25.0 24.8

Floorplan interest expense (9.8) (9.3) (0.5)
Other interest expense (14.7) (10.5) (4.2)
Loss on debt extinguishment (19.6) - (19.6)
Gain on senior note repurchases - 0.6 (0.6)
Interest income 0.3 0.3 -
Other gains (losses), net (0.3) 3.5 (3.8)
----
Income from continuing
operations before income taxes $81.8 $85.5 $(3.7) (4.3)
===== ===== =====

Retail vehicle unit sales:
New 51,893 43,357 8,536 19.7
Used 40,551 33,943 6,608 19.5
-----
92,444 77,300 15,144 19.6
====== ====== ======

Revenue per vehicle retailed:
New $31,956 $30,775 $1,181 3.8
Used $17,378 $16,242 $1,136 7.0

Gross profit per vehicle
retailed:
New $2,099 $1,977 $122 6.2
Used $1,625 $1,665 $(40) (2.4)
Finance and insurance $1,135 $1,146 $(11) (1.0)

Operating Highlights Six Months Ended June 30,
-------------------- -------------------------
2010 2009 $Variance % Variance
---- ---- --------- ----------

Revenue:
New vehicle $3,121.1 $2,517.0 $604.1 24.0
Retail used vehicle 1,348.8 1,074.1 274.7 25.6
Wholesale 169.1 143.8 25.3 17.6
----- ----- ----
Used vehicle 1,517.9 1,217.9 300.0 24.6
------- ------- -----
Parts and service 1,087.2 1,067.7 19.5 1.8
Finance and insurance, net 200.4 165.1 35.3 21.4
Other 23.7 24.9 (1.2)
---- ---- ----
Total revenue $5,950.3 $4,992.6 $957.7 19.2
======== ======== ======

Gross profit:
New vehicle $212.1 $159.3 $52.8 33.1
Retail used vehicle 129.2 118.0 11.2 9.5
Wholesale 6.7 3.4 3.3
---
Used vehicle 135.9 121.4 14.5 11.9
----- ----- ----
Parts and service 477.1 468.9 8.2 1.7
Finance and insurance 200.4 165.1 35.3 21.4
Other 14.1 14.3 (0.2)
---- ---- ----
Total gross profit 1,039.6 929.0 110.6 11.9

Selling, general and
administrative expenses 758.7 713.5 (45.2) (6.3)

Depreciation and amortization 38.5 38.7 0.2
Franchise rights impairment - 1.5 1.5
Other expenses (income), net 1.7 (20.6) (22.3)
--- ----- -----
Operating income 240.7 195.9 44.8 22.9

Floorplan interest expense (19.5) (19.1) (0.4)
Other interest expense (23.7) (22.3) (1.4)
Loss on debt extinguishment (19.6) - (19.6)
Gain on senior note repurchases - 12.5 (12.5)
Interest income 0.5 0.6 (0.1)
Other gains (losses), net (0.5) 1.9 (2.4)
----
Income from continuing
operations before income taxes $177.9 $169.5 $8.4 5.0
====== ====== ====

Retail vehicle unit sales:
New 97,307 81,516 15,791 19.4
Used 78,262 67,705 10,557 15.6
------
175,569 149,221 26,348 17.7
======= ======= ======

Revenue per vehicle retailed:
New $32,075 $30,877 $1,198 3.9
Used $17,234 $15,864 $1,370 8.6

Gross profit per vehicle
retailed:
New $2,180 $1,954 $226 11.6
Used $1,651 $1,743 $(92) (5.3)
Finance and insurance $1,141 $1,106 $35 3.2

Three Months Ended Six Months Ended
Operating Percentages June 30, June 30,
--------------------- ------------------ ----------------
2010 2009
2010 (%) 2009 (%) (%) (%)
-------- -------- ----- -----

Revenue mix percentages:
New vehicle 53.3 51.4 52.5 50.4
Used vehicle 25.3 24.2 25.5 24.4
Parts and service 17.6 20.5 18.3 21.4
Finance and insurance, net 3.4 3.4 3.4 3.3
Other 0.4 0.5 0.3 0.5
100.0 100.0 100.0 100.0
===== ===== ===== =====

Gross profit mix percentages:
New vehicle 20.5 18.1 20.4 17.1
Used vehicle 13.1 12.2 13.1 13.1
Parts and service 45.2 49.5 45.9 50.5
Finance and insurance 19.8 18.7 19.3 17.8
Other 1.4 1.5 1.3 1.5
100.0 100.0 100.0 100.0
===== ===== ===== =====

Operating items as a percentage
of revenue:
Gross profit:
New vehicle 6.6 6.4 6.8 6.3
Used vehicle - retail 9.4 10.2 9.6 11.0
Parts and service 43.7 43.9 43.9 43.9
Total 17.1 18.2 17.5 18.6
Selling, general and
administrative expenses 12.4 13.9 12.8 14.3
Operating income 4.0 3.9 4.0 3.9

Operating items as a percentage
of total gross profit:
Selling, general and
administrative expenses 72.5 76.4 73.0 76.8
Operating income 23.7 21.3 23.2 21.1

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

Segment Operating Highlights Three Months Ended June 30,
---------------------------- ---------------------------
%
2010 2009 $Variance Variance
---- ---- --------- ---------

Revenue:
Domestic $1,040.7 $833.4 $207.3 24.9
Import 1,177.4 998.7 178.7 17.9
Premium luxury 860.4 733.9 126.5 17.2
Corporate and other 30.5 31.4 (0.9) (2.9)
----
Total revenue $3,109.0 $2,597.4 $511.6 19.7
======== ======== ======

*Segment income (loss)
Domestic $41.2 $24.3 $16.9 69.5
Import 52.4 41.5 10.9 26.3
Premium luxury 48.5 42.8 5.7 13.3
Corporate and other (26.0) (17.0) (9.0)
----- ----- ----
Total segment income 116.1 91.6 24.5 26.7

Add: Floorplan interest expense 9.8 9.3 0.5

Operating income $125.9 $100.9 $25.0 24.8
====== ====== =====

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

Retail new vehicle unit sales:
Domestic 16,569 12,770 3,799 29.7
Import 26,944 23,306 3,638 15.6
Premium luxury 8,380 7,281 1,099 15.1
51,893 43,357 8,536 19.7
= =

Segment Operating Highlights Six Months Ended June 30,
---------------------------- -------------------------
%
2010 2009 $Variance Variance
---- ---- --------- ---------

Revenue:
Domestic $1,956.0 $1,610.8 $345.2 21.4
Import 2,248.8 1,885.7 363.1 19.3
Premium luxury 1,683.1 1,437.8 245.3 17.1
Corporate and other 62.4 58.3 4.1 7.0

Total revenue $5,950.3 $4,992.6 $957.7 19.2
======== ======== ======

*Segment income (loss)
Domestic $72.7 $46.0 $26.7 58.0
Import 102.4 71.1 31.3 44.0
Premium luxury 95.3 83.8 11.5 13.7
Corporate and other (49.2) (24.1) (25.1)
----- ----- -----
Total segment income 221.2 176.8 44.4 25.1

Add: Floorplan interest expense 19.5 19.1 0.4

Operating income $240.7 $195.9 $44.8 22.9
====== ====== =====

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

Retail new vehicle unit sales:
Domestic 30,250 23,899 6,351 26.6
Import 50,818 43,216 7,602 17.6
Premium luxury 16,239 14,401 1,838 12.8
97,307 81,516 15,791 19.4
= = ====

Brand Mix -New Vehicle
Retail Units Sold
----------------------
Three Months Six Months Ended
Ended June 30, June 30,
---------------- -----------------
2010 2009 2010 2009
(%) (%) (%) (%)
----- ----- ----- -----

Domestic:
Ford, Lincoln-Mercury 17.3 14.5 16.8 14.4
Chevrolet, Pontiac,
Buick, Cadillac, GMC 12.1 10.8 11.9 11.1
Chrysler, Jeep, Dodge 2.5 4.2 2.4 3.8
Domestic total 31.9 29.5 31.1 29.3
---- ---- ---- ----

Import:
Honda 14.4 15.5 14.1 14.8
Toyota 19.0 19.3 18.7 19.9
Nissan 11.8 12.2 12.6 11.4
Other imports 6.8 6.7 6.8 6.9
Import total 52.0 53.7 52.2 53.0
---- ---- ---- ----

Premium Luxury:
Mercedes 7.8 8.1 8.0 8.4
BMW 4.5 4.4 4.5 4.8
Lexus 2.5 2.5 2.7 2.7
Other premium luxury
(Land Rover, Porsche) 1.3 1.8 1.5 1.8
Premium Luxury total 16.1 16.8 16.7 17.7
---- ---- ---- ----

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

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

Capital Expenditures /Stock Three Months Ended Six Months Ended
and Debt Repurchases June 30, June 30,
--------------------------- ------------------ ----------------
2010 2009 2010 2009
---- ---- ---- ----

Capital expenditures $26.2 $13.7 $40.3 $34.1
Acquisitions $- $- $12.5 $0.2
Proceeds from exercises of
stock options $5.4 $9.6 $5.6 $9.8
Senior note repurchases
(aggregate principal) $- $6.0 $- $78.0
Stock repurchases:
Aggregate purchase price $414.4 $- $451.6 $-
Shares repurchased (in
millions) 20.9 - 23.0 -

Floorplan Assistance and Expense Three Months Ended June 30,
-------------------------------- ---------------------------
2010 2009 Variance
---- ---- --------

Floorplan assistance earned
(included in cost of sales) $14.1 $10.9 $3.2
Floorplan interest expense (new
vehicles) (9.4) (8.7) (0.7)
---- ---- ----

Net new vehicle inventory
carrying benefit $4.7 $2.2 $2.5
==== ==== ====

Six Months Ended June
Floorplan Assistance and Expense 30,
-------------------------------- ----------------------
2010 2009 Variance
---- ---- --------

Floorplan assistance earned
(included in cost of sales) $26.5 $20.8 $5.7
Floorplan interest expense (new
vehicles) (18.6) (17.9) (0.7)
----- ----- ----

Net new vehicle inventory
carrying benefit $7.9 $2.9 $5.0
==== ==== ====

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

June 30, December 31, June 30,
2010 2009 2009
--------- ------------- ---------

Cash and cash equivalents $101.6 $173.6 $128.9
Inventory $1,580.9 $1,397.1 $1,252.3
Total floorplan notes payable $1,488.4 $1,378.4 $1,195.0
Non-vehicle debt $1,367.3 $1,112.6 $1,133.0
Equity $1,970.6 $2,303.2 $2,290.4
New days supply (industry standard
of selling
days, including fleet) 55 days 55 days 53 days

Used days supply (trailing 30 days) 45 days 41 days 37 days

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

Ratio of funded indebtedness/
Adjusted EBITDA 2.66
less
Covenant than 3.25
-------- ----- ----

Ratio of funded indebtedness including floorplan/
Total capitalization including floorplan 45.1%
less
Covenant than 60.0%
-------- ---- ----

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

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

2010 2009 2010 2009
---- ---- ---- ----

As reported $47.2 $36.7 $0.29 $0.21

Discontinued
operations,
net of income
taxes 2.7 17.3 $0.02 $0.10
--- ----
From continuing
operations, as
reported 49.9 54.0 $0.31 $0.30

Loss on debt
extinguishment 12.1 - $0.07 $-
Gain on asset
sales and
dispositions - (3.7) $- $(0.02)
--- ----

Adjusted $62.0 $50.3 $0.38 $0.28
===== =====

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

2010 2009 2010 2009
---- ---- ---- ----

As reported $102.4 $71.3 $0.61 $0.40

Discontinued
operations,
net of income
taxes 6.0 35.3 $0.04 $0.20
--- ----
From continuing
operations, as
reported 108.4 106.6 $0.65 $0.60

Loss on debt
extinguishment 12.1 - $0.07 $-
Net gain on
asset sales
and
dispositions - (9.6) $- $(0.05)
Gain on senior
note
repurchases - (7.7) $- $(0.04)
Property and
other
impairments*** - 0.7 $- $0.00
--- ---

Adjusted $120.5 $90.0 $0.72 $0.51
====== =====

* 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.
*** Property and other impairments for the three months ended March
31, 2009 totaled $4.8 million after-tax, of which $4.5 million was
reclassified to loss from discontinued operations since they related
to dealerships classified as discontinued operations during the
three months ended June 30, 2009.

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

Operating Highlights Three Months Ended June 30,
-------------------- ---------------------------
%
2010 2009 $Variance Variance
---- ---- --------- ---------

Revenue:
New vehicle $1,649.1 $1,329.6 $319.5 24.0
Retail used vehicle 698.4 548.7 149.7 27.3
Wholesale 78.6 76.7 1.9 2.5
---- ---- ---
Used vehicle 777.0 625.4 151.6 24.2
Parts and service 541.0 531.9 9.1 1.7
Finance and insurance,
net 104.4 88.4 16.0 18.1
Other 11.8 10.7 1.1
---- ---- ---
Total revenue $3,083.3 $2,586.0 $497.3 19.2
======== ======== ======

Gross profit:
New vehicle $108.2 $85.9 $22.3 26.0
Retail used vehicle 65.3 56.2 9.1 16.2
Wholesale 3.6 1.6 2.0
--- --- ---
Used vehicle 68.9 57.8 11.1 19.2
Parts and service 236.6 233.6 3.0 1.3
Finance and insurance 104.4 88.4 16.0 18.1
Other 7.0 6.8 0.2
--- --- ---
Total gross profit $525.1 $472.5 $52.6 11.1
====== ====== =====

Retail vehicle unit
sales:
New 51,622 43,186 8,436 19.5
Used 40,215 33,743 6,472 19.2
------ ------ -----
91,837 76,929 14,908 19.4
====== ====== ======

Revenue per vehicle
retailed:
New $31,946 $30,788 $1,158 3.8
Used $17,367 $16,261 $1,106 6.8

Gross profit per vehicle
retailed:
New $2,096 $1,989 $107 5.4
Used $1,624 $1,666 $(42) (2.5)
Finance and insurance $1,137 $1,149 $(12) (1.0)

Operating Highlights Six Months Ended June 30,
-------------------- -------------------------
%
2010 2009 $Variance Variance
---- ---- --------- ---------

Revenue:
New vehicle $3,103.8 $2,507.6 $596.2 23.8
Retail used vehicle 1,338.9 1,066.6 272.3 25.5
Wholesale 165.8 141.8 24.0 16.9
----- ----- ----
Used vehicle 1,504.7 1,208.4 296.3 24.5
Parts and service 1,077.0 1,063.0 14.0 1.3
Finance and insurance,
net 199.6 164.5 35.1 21.3
Other 23.3 23.4 (0.1)
---- ---- ----
Total revenue $5,908.4 $4,966.9 $941.5 19.0
======== ======== ======

Gross profit:
New vehicle $210.9 $159.1 $51.8 32.6
Retail used vehicle 128.4 116.8 11.6 9.9
Wholesale 6.7 3.5 3.2
--- --- ---
Used vehicle 135.1 120.3 14.8 12.3
Parts and service 472.7 467.0 5.7 1.2
Finance and insurance 199.6 164.5 35.1 21.3
Other 13.8 13.8 -
---- ---- ---
Total gross profit $1,032.1 $924.7 $107.4 11.6
======== ====== ======

Retail vehicle unit
sales:
New 96,832 81,211 15,621 19.2
Used 77,750 67,136 10,614 15.8
------ ------ ------
174,582 148,347 26,235 17.7
======= ======= ======

Revenue per vehicle
retailed:
New $32,053 $30,878 $1,175 3.8
Used $17,221 $15,887 $1,334 8.4

Gross profit per vehicle
retailed:
New $2,178 $1,959 $219 11.2
Used $1,651 $1,740 $(89) (5.1)
Finance and insurance $1,143 $1,109 $34 3.1

Three Months Ended Six Months Ended
Operating Percentages June 30, June 30,
--------------------- ------------------ ----------------
2010 2009
2010 (%) 2009 (%) (%) (%)
-------- -------- ----- -----

Revenue mix percentages:
New vehicle 53.5 51.4 52.5 50.5
Used vehicle 25.2 24.2 25.5 24.3
Parts and service 17.5 20.6 18.2 21.4
Finance and insurance, net 3.4 3.4 3.4 3.3
Other 0.4 0.4 0.4 0.5
100.0 100.0 100.0 100.0
===== ===== ===== =====

Gross profit mix
percentages:
New vehicle 20.6 18.2 20.4 17.2
Used vehicle 13.1 12.2 13.1 13.0
Parts and service 45.1 49.4 45.8 50.5
Finance and insurance 19.9 18.7 19.3 17.8
Other 1.3 1.5 1.4 1.5
100.0 100.0 100.0 100.0
===== ===== ===== =====

Operating items as a
percentage of revenue:
Gross Profit:
New vehicle 6.6 6.5 6.8 6.3
Used vehicle - retail 9.3 10.2 9.6 11.0
Parts and service 43.7 43.9 43.9 43.9
Total 17.0 18.3 17.5 18.6

SOURCE AutoNation, Inc.

Subject Codes: PC/t.100722080004719, PT/lang.en, PC/ticker, IN/AUT,
IN/REA, SU/ERN, SU/CCA, RE/Florida, PC/priority.r,
PC/category.f, PC/class.1258, PC/WAVO_....u.,
PC/APT_....u, PC/trade_u, PC/wavo5_u, PC/class.1024,
PC/WAVO_f....., PC/APT_f...., PC/state_f, PC/wavo1_f,
PC/class.1278, PC/class.1000, PC/WAVO_..b...,
PC/APT_..b.., PC/circuit_b, PC/wavo3_b,
PC/DataFeat_natl3, PC/port_32, PC/Billing_EML,
PC/Billing_FC1, PC/Billing_IRW, PC/Billing_RWB,
PC/Billing_TNW, PC/Billing_US1, PC/1stAcc_750525,
PC/bureau_FL, PC/port_01, PC/port_96, PC/port_31,
PC/port_33, PC/port_19, PC/port_91, PC/contact,
PC/website, PC/photo, PC/id_FL37912

Company Codes: NYSE:AN, NYSE:AN