OREANDA-NEWS. AutoNation, Inc. (NYSE: AN), America's largest automotive retailer, today reported fourth quarter 2016 net income from continuing operations of $116 million, or $1.14 per share, which includes a $20 million after-tax gain, or $0.19 per share, related to a business divestiture. Fourth quarter 2015 net income from continuing operations totaled $98 million, or $0.87 per share.

Fourth quarter 2016 revenue totaled $5.5 billion compared to $5.3 billion in the year-ago period. Fourth quarter 2016 gross profit of $809 million was relatively flat with the year-ago period gross profit of $812 million.

Share Repurchase

During 2016, AutoNation repurchased 10.5 million shares of common stock for an aggregate purchase price of $497 million. As of February 1, 2017, AutoNation has approximately $299 million remaining Board authorization for share repurchase and 101 million shares outstanding.

Segment Results

Segment results(1) for the fourth quarter and full year 2016 were as follows:

Fourth Quarter 2016 Segment Results

Domestic - Domestic segment income(2) was $64 million compared to year-ago segment income of $78 million, a decrease of 18%.

Import - Import segment income(2) was $67 million compared to year-ago segment income of

$71 million, a decrease of 6%.

Premium Luxury - Premium Luxury segment income(2) was $93 million compared to year-ago segment income of $102 million, a decrease of 9%.

Full Year 2016 Segment Results

Domestic - Domestic segment income(2) was $311 million compared to year-ago segment income of $337 million, a decrease of 8%.

Import - Import segment income(2) was $297 million compared to year-ago segment income of $311 million, a decrease of 5%.

Premium Luxury - Premium Luxury segment income(2) was $350 million compared to year-ago segment income of $376 million, a decrease of 7%.

For the full year ended December 31, 2016, AutoNation reported net income from continuing operations of $432 million, or $4.16 per share, compared to net income from continuing operations of $444 million, or $3.90 per share, for the same period in the prior year, an improvement of 7% on a per-share basis. AutoNation's revenue for full year 2016 totaled $21.6 billion, up 4% compared to $20.9 billion for the same period in the prior year.

The webcast will also be available on AutoNation's website under "Events & Presentations" following the call. A playback of the conference call will be available after 1:00 p.m. Eastern Time on February 3, 2017, through February 17, 2017 by calling (888) 568-0350 (passcode: 5481).

(1)   

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 FCA US; the Import segment is comprised of stores that sell vehicles manufactured primarily by Toyota, Honda, Nissan, and Hyundai; and the Premium Luxury segment is comprised of stores that sell vehicles manufactured primarily by Mercedes-Benz, BMW, Lexus, and Audi.
   

(2)   

Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense.

AutoNation, America's largest automotive retailer, through its bold leadership, innovation and its comprehensive brand extensions, is transforming the automotive industry. As of December 31, 2016, AutoNation owned and operated 371 new vehicle franchises from coast to coast. AutoNation has sold over 10 million vehicles, the first automotive retailer to reach this milestone. AutoNation's success is driven by a commitment to delivering a peerless experience through customer-focused sales and service processes. Through its Drive Pink initiative, AutoNation is committed to drive out cancer, create awareness and support critical research. AutoNation continues to be a proud supporter of the Breast Cancer Research Foundation and other cancer-related charities.