AutoNation, Inc. America's largest automotive retailer, today reported 2011 second quarter net income of $73 million, or $0.49 per share, compared to adjusted net income of $62 million, or $0.38 per share, for the same period in the prior year, a 29% improvement on a per-share basis.
Adjusted net income from continuing operations for the second quarter of 2010 excluded debt refinancing costs of $12 million after-tax, or $0.07 per share, as disclosed in the attached financial tables. On a GAAP basis, second quarter 2010 net income from continuing operations was $50 million, or $0.31 per share. There were no adjusting items for the second quarter of 2011.
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2011 second quarter revenue totaled $3.3 billion, compared to $3.1 billion in the year-ago period, an increase of 8%, driven primarily by higher retail new and used vehicle average selling prices.
AutoNation's new vehicle unit sales decreased 4% on a same store basis and were flat overall. Based on CNW Research data, in the second quarter, total U.S. industry new retail vehicle unit sales decreased 2%.
AutoNation's 2011 second quarter retail used vehicle revenue increased 12%. Parts and service revenue increased 5%, and finance and insurance revenue increased 12% compared to the 2010 second quarter.
2011 second quarter gross profit totaled $583 million, compared to $529 million in the year-ago period, an increase of 10%, primarily due to an increase in retail new and used vehicle gross profit, as well as an increase in finance and insurance gross profit. Gross profit in the second quarter of 2011 was favorably impacted by $1.4 million related to incentives on premium luxury vehicles previously sold. On a per-vehicle basis, gross profit per new vehicle retailed increased $539 or 26%, while gross profit per used vehicle retailed increased $174 or 11%, as compared to the year-ago period.
Mike Jackson, Chairman and Chief Executive Officer, said, "We delivered solid double-digit growth in operating income in the second quarter, which was driven by strong new and used vehicle gross profit." Mr. Jackson added, "This quarter we once again demonstrated the strength of our diversified business model, and our ability to react quickly and execute effectively in a changing marketplace."