AutoNation Reports All-Time Record Quarterly Earnings Per Share

• EPS from continuing operations was an all-time record $1.64, up 44% compared to fourth quarter 2016 EPS from continuing operations of $1.14
• Total revenue of $5.7 billion increased by 4% compared to the year-ago period. Same store revenue of $5.6 billion increased by 4% compared to the year-ago period
• Same store gross profit of $851 million increased by 7% compared to the year-ago period, driven by an all-time record same store Customer Financial Services gross profit per vehicle retailed of $1,732, an increase of 11%, and strong same store Customer Care gross profit growth of 6%
• The recent tax reform bill positively impacted fourth quarter 2017 net income from continuing operations by $41 million, or $0.45 per share

FORT LAUDERDALE, Fla. -- AutoNation, Inc. (NYSE: AN), America's largest automotive retailer, today reported fourth quarter 2017 net income from continuing operations of $152 million, or $1.64 per share, up 44% compared to the fourth quarter 2016 net income from continuing operations of $116 million, or $1.14 per share. Fourth quarter 2017 EPS from continuing operations included a benefit of $0.45 per share from the recent tax reform bill and a net gain of $0.17 per share related to business/property divestitures. Fourth quarter 2016 EPS from continuing operations included gains of $0.19 per share related to a business divestiture and $0.09 per share related to a legal settlement.

Fourth quarter 2017 revenue totaled $5.7 billion compared to $5.5 billion in the year-ago period. Same store fourth quarter 2017 revenue totaled $5.6 billion compared to $5.4 billion in the year-ago period, an increase of 4%. Same store fourth quarter 2017 gross profit of $851 million increased by 7% compared to $794 million in the year-ago period, driven by increases in used vehicle gross profit of 16%, Customer Financial Services gross profit of 14%, and Customer Care gross profit of 6%. Same store Customer Financial Services gross profit per vehicle retailed was an all-time record $1,732.

Share Repurchase
During 2017, AutoNation repurchased 10.1 million shares of common stock for an aggregate purchase price of $435 million. As of January 31, 2018, AutoNation has approximately $114 million remaining Board authorization for share repurchase and 92 million shares outstanding.

Segment Results
Segment results(1) for the fourth quarter 2017 were as follows:

• Domestic - Domestic segment income(2) was $67 million compared to year-ago segment income of $64 million, an increase of 4%.
• Import - Import segment income(2) was $75 million compared to year-ago segment income of
  $67 million, an increase of 13%.
• Premium Luxury - Premium Luxury segment income(2) was $106 million compared to year-ago segment income of $93 million, an increase of 13%.

For the full year ended December 31, 2017, AutoNation reported net income from continuing operations of $435 million, or $4.43 per share, compared to net income from continuing operations of $432 million, or $4.16 per share, for the same period in the prior year, an increase of 6% on a per-share basis. AutoNation'srevenue for full year 2017 totaled $21.5 billion, which was down slightly compared to $21.6 billion for the same period in the prior year.

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

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 1, 2018, through February 22, 2018, by calling (888) 437-4641 (passcode: 2871).

(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.

About AutoNation, Inc.
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, 2017, AutoNation owned and operated 360 new vehicle franchises from coast to coast. AutoNation has sold over 11 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.