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$AN Event Update: AutoNation today announced that it will release its financial results for the 2Q15 on July 22, 2015. Mike Jackson, Chairman & CEO; Bill Berman, Executive Vice President & COO; Cheryl Miller, Executive Vice President & CFO ; & Jon Ferrando, EVP will discuss these results. Conference call & audio webcast that same day at 11AM ET.
Automotive retailer $AN said it expects the recent tax reform bill to positively impact its income from continuing operations by $41MM or $0.45 per share in 4Q17 and by $75-$100MM or $0.80-$1.10 per share in FY18. The company intends to use the resultant savings to invest in its brand extension strategy, Drive Pink initiatives and employees.
$AN said that Bill Berman has resigned as President and COO effective May 15, 2017. Bill will continue to serve as an employee of the company in an advisory capacity through June 30, 2017. Mike Jackson, $AN's Chairman and CEO, will assume all operating responsibilities as the company begins the selection process for a new President and COO.
$AN announced that Jon Ferrando, executive VP of general counsel, corporate development and HR, will be retiring from the company on March 31, 2017. Coleman Edmunds, the current SVP and deputy general counsel, will serve as acting general counsel and corporate secretary effective April 1, 2017.
$AN stated that the new vehicle pressure on gross profit per unit is coming from all segments, Import, Domestic and Premium Luxury. There is more pressure on the car side of the business compared to the small truck SUV side but it is broken out evenly across the board.
In 4Q16, $AN’s customer care revenue was $765MM, up 2%. Customer care gross profit was $332MM, an increase of 2%. Customer financial services gross profit was $1,569 on a per vehicle retail basis. Total gross profit for customer financial services was $205MM, down 2% compared to a year ago.
For 4Q16, on a same store basis, $AN’s gross profit for variable operations was $422MM, down 7%. Variable growth was $3,269 on a per vehicle retail basis, a decrease of 4%. New and used same store unit volume was down 3% compared to 4Q15. New vehicle revenue was $3Bil, down 2%.
In 4Q16, $AN’s total revenue increased 3% from last year. Total gross profit was $809MM, which was relatively flat compared to $812MM in the prior-year period. Operating income was $237MM compared to $200MM last year, up 18%. Retail new vehicle unit sales decreased 1% overall, or 4% on a same-store basis.
During 4Q16, revenue in $AN’s Domestic segment grew to $1.9Bil versus $1.7Bil in 4Q15. In the Import segment, revenues declined to $1.6Bil from $1.7Bil last year. In the Premium Luxury segment, revenue declined to $1.7Bil from $1.8Bil last year.