OREANDA-NEWS. AutoNation, Inc. (NYSE: AN), America's largest automotive retailer, reported fourth quarter 2015 adjusted net income from continuing operations of $107 million, or $0.96 per share, compared to net income from continuing operations of $117 million, or $1.02 per share, for the same period in the prior year. Adjusted net income from continuing operations for the fourth quarter of 2015 excludes non-cash impairment charges related to franchise rights associated with certain of our Volkswagen stores of $9.6 million after-tax, or $0.09 per share. There were no adjusting items for the fourth quarter of 2014. On a GAAP basis, fourth quarter 2015 net income from continuing operations was $98 million, or $0.87 per share. Reconciliations of non-GAAP financial measures are included in the attached financial tables.

Fourth quarter 2015 revenue totaled $5.3 billion compared to $5.0 billion in the year-ago period, an increase of 6%, driven by stronger performance in all business sectors - new vehicles, used vehicles, parts and service, and finance and insurance. In the fourth quarter of 2015, AutoNation's retail new vehicle unit sales increased 4% overall and 1% on a same store basis.

Fourth quarter 2015 gross profit of $812 million increased 4% as compared to $784 million in the year-ago period, driven by an increase of 11% in parts and service gross profit and an increase of 10% in finance and insurance gross profit as compared to the prior year.

Mike Jackson, Chairman, Chief Executive Officer and President said, "In the fourth quarter, new and used vehicle margins on a combined basis declined by $217 per vehicle retailed, or 11%, as compared to the fourth quarter of 2014. As of year-end, our new vehicle inventories increased 13% on a same store basis, as compared to the prior year, driven by a 49% increase in Premium Luxury inventories. We have begun, and will continue through the first quarter, to take the necessary steps to align our costs, inventory, and pricing strategy to adjust to the current market."

Mr. Jackson added, "In 2016, we expect industry new vehicle unit sales will again exceed 17 million."

For the full year ended December 31, 2015, AutoNation reported adjusted net income from continuing operations of $453 million, or $3.98 per share, compared to adjusted net income from continuing operations of $415 million, or $3.49 per share, for the same period in the prior year, an improvement of 14% on a per-share basis. Adjusted net income from continuing operations for the full year 2015 excludes non-cash impairment charges related to franchise rights associated with certain of our Volkswagen stores of $9.6 million after-tax, or $0.08 per share, and for the full year 2014 excludes a net gain related to business/property dispositions of $5.0 million after-tax, or $0.04 per share. On a GAAP basis, net income from continuing operations was $444 million, or $3.90 per share, for 2015 compared to $420 million, or $3.53 per share, for 2014. Reconciliations of non-GAAP financial measures are included in the attached financial tables. AutoNation's revenue for full year 2015 totaled $20.9 billion, up 9% compared to $19.1 billion for the same period in the prior year.

About AutoNation, Inc.
AutoNation is America's largest automotive retailer, currently owning and operating 342 new vehicle franchises from coast to coast. AutoNation sold its 10 millionth vehicle in 2015, the first automotive retailer to reach this milestone. AutoNation is also the only automotive retailer to guarantee every vehicle retailed is recall-free. A commitment to delivering a peerless experience through customer-focused sales and service processes is what drives AutoNation's success. In 2015, AutoNation committed $1,000,000 to support the Breast Cancer Research Foundation through its Drive Pink Campaign. AutoNation is transforming the automotive industry through bold leadership, technology and innovation.