AutoNation Reports All-Time Record Quarterly EPS from Continuing Operations

- EPS from continuing operations was an all-time record $1.08, up 8% compared to second quarter 2015 EPS from continuing operations of $1.00

- Total revenue of $5.4 billion was up 4% compared to the year-ago period

News provided by

AutoNation, Inc.

Jul 29, 2016, 07:25 ET

FORT LAUDERDALE, Fla., July 29, 2016 /PRNewswire/ -- AutoNation, Inc. (NYSE: AN), America's largest automotive retailer, today reported second quarter 2016 net income from continuing operations of $112 million, or $1.08 per share, compared to net income from continuing operations of $115 million, or $1.00 per share, for the same period in the prior year.

Mike Jackson, Chairman, Chief Executive Officer and President, said, "We achieved record EPS from continuing operations. We benefited from our opportunistic capital allocation strategy, including acquisitions and share repurchase, and we began to see the results of adjusting our cost structure and inventory levels to the current industry selling environment. We remain focused on our strategy to manage costs and reduce our inventory levels going forward and we will continue to take advantage of capital allocation opportunities."

Mike Jackson added, "The Takata airbag recall continues to be disruptive to our business. However, in the second half of the year we anticipate improvement due to Takata airbag parts availability and compensation paid by certain manufacturers that will partially offset our costs."

Acquisitions
In July 2016, AutoNation completed the previously announced acquisition of four stores, comprised of five franchises, in the Westchester County, New York area, representing approximately $190 million in annual revenue. Upon completion of certain facilities associated with these stores, AutoNation will be awarded a Land Rover franchise and a Jaguar franchise, which are expected to generate approximately $100 million in additional annual revenue once fully operational. AutoNation also completed the acquisition of a Chrysler Jeep store in the Denver market in July 2016, representing approximately $110 million in annual revenue.

Share Repurchase
During the second quarter of 2016, AutoNation repurchased 1 million shares of common stock for an aggregate purchase price of $50 million. As of July 28, 2016, AutoNation has approximately $116 million remaining Board authorization for share repurchase and 102 million shares outstanding.

Segment Results
Segment results⁽¹⁾ for the second quarter and first six months of 2016 were as follows:

Second Quarter 2016 Segment Results

Domestic - Domestic segment income⁽²⁾ was $86 million compared to year-ago segment income of $85 million, an increase of 1%.
Import - Import segment income⁽²⁾ was $75 million compared to year-ago segment income of $80 million, a decrease of 7%.
Premium Luxury - Premium Luxury segment income⁽²⁾ was $93 million compared to year-ago segment income of $94 million, a decrease of 2%.

First Six Months 2016 Segment Results

Domestic - Domestic segment income⁽²⁾ was $163 million compared to year-ago segment income of $164 million, a decrease of 1%.
Import - Import segment income⁽²⁾ was $151 million compared to year-ago segment income of $155 million, a decrease of 3%.
Premium Luxury - Premium Luxury segment income⁽²⁾ was $176 million compared to year-ago segment income of $189 million, a decrease of 7%.

For the six-month period ended June 30, 2016, the Company reported net income from continuing operations of $208 million, or $1.97 per share, compared to net income from continuing operations of $227 million, or $1.97 per share, for the same period in the prior year. The Company's revenue for the six-month period ended June 30, 2016, totaled $10.6 billion, up 4% compared to $10.2 billion for the same period in the prior year.

The second quarter conference call may be accessed by telephone at (888) 769-8515 (password: AutoNation) at 11:00 a.m. Eastern Time 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 July 29, 2016, through August 29, 2016 by calling (866) 382-4783 (password 5423).

⁽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 (formerly Chrysler); 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 is America's largest automotive retailer, currently owning and operating over 360 new vehicle franchises from coast to coast. AutoNation sold its 10 millionth vehicle in 2015, the first automotive retailer to reach this milestone. A commitment to delivering a peerless experience through customer-focused sales and service processes is what drives AutoNation's success. AutoNation supports the Breast Cancer Research Foundation through its Drive Pink Campaign. AutoNation is transforming the automotive industry through bold leadership, technology and innovation.

Please visit investors.autonation.com, www.autonation.com, www.autonationdrive.com, www.twitter.com/autonation, www.twitter.com/CEOMikeJackson, www.facebook.com/autonation, and www.facebook.com/CEOMikeJackson, where AutoNation discloses additional information about the Company, its business, and its results of operations.

FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Words such as "anticipates," "expects," "intends," "goals," "plans," "believes," "continues," "may," "will," and variations of such words and similar expressions are intended to identify such forward-looking statements. Statements regarding our strategic initiatives, open safety recalls, and expectations for the future performance of our franchises and the automotive retail industry, as well as statements that describe our objectives, goals, or plans are forward-looking statements. Our forward-looking statements reflect our current expectations concerning future results and events, and they involve known and unknown risks, uncertainties and other factors that are difficult to predict and may cause our actual results, performance or achievements to be materially different from any future results, performance and achievements expressed or implied by these statements. These risks, uncertainties and other factors include, among others: economic conditions, including conditions in the credit markets and changes in interest rates; new and used vehicle margins; the success and financial viability and the incentive and marketing programs of vehicle manufacturers and distributors with which we hold franchises; our ability to maintain and enhance our retail brands and reputation and to attract consumers to our own digital channels; our ability to integrate successfully acquired and awarded franchises and to attain planned sales volumes within our expected time frames; restrictions imposed by vehicle manufacturers and our ability to obtain manufacturer approval for acquisitions; natural disasters and other adverse weather events; the resolution of legal and administrative proceedings; regulatory factors affecting our business, including fuel economy requirements; the announcement of safety recalls; factors affecting our goodwill and other intangible asset impairment testing; and other factors described in our news releases and filings made under the securities laws, including, among others, our Annual Reports on Form 10-K, our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. Forward-looking statements contained in this news release speak only as of the date of this news release, and we undertake no obligation to update these forward-looking statements to reflect subsequent events or circumstances.

AUTONATION, INC.
UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENTS
(In millions, except per share data)

			Three Months Ended June 30,				Six Months Ended June 30,
			2016		2015		2016		2015

Revenue:
	New vehicle	$	3,071.9	$	2,967.8	$	5,872.1	$	5,737.4
	Used vehicle		1,259.4		1,216.3		2,501.0		2,409.5
	Parts and service		834.7		777.8		1,655.1		1,521.2
	Finance and insurance, net		225.4		217.7		448.5		425.3
	Other		50.0		44.7		84.3		75.1
Total revenue			5,441.4		5,224.3		10,561.0		10,168.5

Cost of sales:
	New vehicle		2,909.1		2,801.7		5,560.1		5,409.8
	Used vehicle		1,175.4		1,125.2		2,326.0		2,214.7
	Parts and service		473.1		440.6		938.8		864.0
	Other		42.0		37.7		68.4		61.0
Total cost of sales			4,599.6		4,405.2		8,893.3		8,549.5

Gross profit			841.8		819.1		1,667.7		1,619.0

Selling, general, and administrative expenses			585.2		568.7		1,173.9		1,126.3
Depreciation and amortization			35.9		32.1		70.7		60.8
Other income, net			(5.8)		(3.8)		(10.8)		(5.1)

Operating income			226.5		222.1		433.9		437.0

Non-operating income (expense) items:
	Floorplan interest expense		(19.3)		(14.2)		(38.2)		(27.4)
	Other interest expense		(28.7)		(21.6)		(57.0)		(43.0)
	Interest income		0.4		-		0.5		0.1
	Other income, net		4.2		0.5		0.8		1.6

Income from continuing operations before income taxes			183.1		186.8		340.0		368.3

Income tax provision			71.0		71.6		131.7		141.4

Net income from continuing operations			112.1		115.2		208.3		226.9

Loss from discontinued operations, net of income taxes			(0.1)		(0.1)		(0.4)		(0.3)


Net income		$	112.0	$	115.1	$	207.9	$	226.6


Diluted earnings (loss) per share*:
	Continuing operations	$	1.08	$	1.00	$	1.97	$	1.97
	Discontinued operations	$	-	$	-	$	-	$	-

	Net income	$	1.08	$	1.00	$	1.97	$	1.97


Weighted average common shares outstanding			103.6		115.1		105.5		115.1

Common shares outstanding, net of treasury stock, at period end			102.2		113.4		102.2		113.4


* Earnings per share amounts are calculated discretely and therefore may not add up to the total due to rounding.

AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions, except per vehicle data)


		Operating Highlights		Three Months Ended June 30,							Six Months Ended June 30,
				2016		2015		$ Variance	% Variance		2016		2015		$ Variance	% Variance
Revenue:
		New vehicle	$	3,071.9	$	2,967.8	$	104.1	3.5	$	5,872.1	$	5,737.4	$	134.7	2.3
		Retail used vehicle		1,122.6		1,109.1		13.5	1.2		2,242.5		2,203.2		39.3	1.8
		Wholesale		136.8		107.2		29.6	27.6		258.5		206.3		52.2	25.3
		Used vehicle		1,259.4		1,216.3		43.1	3.5		2,501.0		2,409.5		91.5	3.8
		Finance and insurance, net		225.4		217.7		7.7	3.5		448.5		425.3		23.2	5.5
	Total variable operations			4,556.7		4,401.8		154.9	3.5		8,821.6		8,572.2		249.4	2.9
	Parts and service			834.7		777.8		56.9	7.3		1,655.1		1,521.2		133.9	8.8
	Other			50.0		44.7		5.3			84.3		75.1		9.2
Total revenue			$	5,441.4	$	5,224.3	$	217.1	4.2	$	10,561.0	$	10,168.5	$	392.5	3.9


Gross profit:
		New vehicle	$	162.8	$	166.1	$	(3.3)	(2.0)	$	312.0	$	327.6	$	(15.6)	(4.8)
		Retail used vehicle		86.7		91.4		(4.7)	(5.1)		180.4		193.9		(13.5)	(7.0)
		Wholesale		(2.7)		(0.3)		(2.4)			(5.4)		0.9		(6.3)
		Used vehicle		84.0		91.1		(7.1)	(7.8)		175.0		194.8		(19.8)	(10.2)
		Finance and insurance		225.4		217.7		7.7	3.5		448.5		425.3		23.2	5.5
	Total variable operations			472.2		474.9		(2.7)	(0.6)		935.5		947.7		(12.2)	(1.3)
	Parts and service			361.6		337.2		24.4	7.2		716.3		657.2		59.1	9.0
	Other			8.0		7.0		1.0			15.9		14.1		1.8
Total gross profit				841.8		819.1		22.7	2.8		1,667.7		1,619.0		48.7	3.0

Selling, general, and administrative expenses				585.2		568.7		(16.5)	(2.9)		1,173.9		1,126.3		(47.6)	(4.2)

Depreciation and amortization				35.9		32.1		(3.8)			70.7		60.8		(9.9)
Other income, net				(5.8)		(3.8)		2.0			(10.8)		(5.1)		5.7
Operating income				226.5		222.1		4.4	2.0		433.9		437.0		(3.1)	(0.7)

Non-operating income (expense) items:
		Floorplan interest expense		(19.3)		(14.2)		(5.1)			(38.2)		(27.4)		(10.8)
		Other interest expense		(28.7)		(21.6)		(7.1)			(57.0)		(43.0)		(14.0)
		Interest income		0.4		-		0.4			0.5		0.1		0.4
		Other income, net		4.2		0.5		3.7			0.8		1.6		(0.8)
Income from continuing operations before income taxes			$	183.1	$	186.8	$	(3.7)	(2.0)	$	340.0	$	368.3	$	(28.3)	(7.7)

Retail vehicle unit sales:
		New		85,654		85,245		409	0.5		164,678		163,805		873	0.5
		Used		56,637		57,370		(733)	(1.3)		114,740		115,994		(1,254)	(1.1)
				142,291		142,615		(324)	(0.2)		279,418		279,799		(381)	(0.1)

Revenue per vehicle retailed:
		New	$	35,864	$	34,815	$	1,049	3.0	$	35,658	$	35,026	$	632	1.8
		Used	$	19,821	$	19,332	$	489	2.5	$	19,544	$	18,994	$	550	2.9

Gross profit per vehicle retailed:
		New	$	1,901	$	1,949	$	(48)	(2.5)	$	1,895	$	2,000	$	(105)	(5.3)
		Used	$	1,531	$	1,593	$	(62)	(3.9)	$	1,572	$	1,672	$	(100)	(6.0)
		Finance and insurance	$	1,584	$	1,526	$	58	3.8	$	1,605	$	1,520	$	85	5.6
		Total variable operations⁽¹⁾	$	3,338	$	3,332	$	6	0.2	$	3,367	$	3,384	$	(17)	(0.5)


		Operating Percentages		Three Months Ended June 30,				Six Months Ended June 30,
				2016 (%)		2015 (%)		2016 (%)	2015 (%)

Revenue mix percentages:
		New vehicle		56.5		56.8		55.6	56.4
		Used vehicle		23.1		23.3		23.7	23.7
		Parts and service		15.3		14.9		15.7	15.0
		Finance and insurance, net		4.1		4.2		4.2	4.2
		Other		1.0		0.8		0.8	0.7
				100.0		100.0		100.0	100.0

Gross profit mix percentages:
		New vehicle		19.3		20.3		18.7	20.2
		Used vehicle		10.0		11.1		10.5	12.0
		Parts and service		43.0		41.2		43.0	40.6
		Finance and insurance		26.8		26.6		26.9	26.3
		Other		0.9		0.8		0.9	0.9
				100.0		100.0		100.0	100.0

Operating items as a percentage of revenue:
		Gross profit:
		New vehicle		5.3		5.6		5.3	5.7
		Used vehicle - retail		7.7		8.2		8.0	8.8
		Parts and service		43.3		43.4		43.3	43.2
		Total		15.5		15.7		15.8	15.9
		Selling, general, and administrative expenses		10.8		10.9		11.1	11.1
		Operating income		4.2		4.3		4.1	4.3

Operating items as a percentage of total gross profit:
		Selling, general, and administrative expenses		69.5		69.4		70.4	69.6
		Operating income		26.9		27.1		26.0	27.0

⁽¹⁾	Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle, retail used vehicle, and finance and insurance gross profit by total retail vehicle unit sales.

AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions)


	Segment Operating Highlights		Three Months Ended June 30,							Six Months Ended June 30,
			2016		2015		$ Variance	% Variance		2016		2015		$ Variance	% Variance


Revenue:
	Domestic	$	1,995.1	$	1,764.2	$	230.9	13.1	$	3,843.3	$	3,429.9	$	413.4	12.1
	Import		1,748.1		1,795.0		(46.9)	(2.6)		3,423.1		3,473.7		(50.6)	(1.5)
	Premium luxury		1,644.7		1,633.0		11.7	0.7		3,185.0		3,196.2		(11.2)	(0.4)
	Total		5,387.9		5,192.2		195.7	3.8		10,451.4		10,099.8		351.6	3.5
	Corporate and other		53.5		32.1		21.4	66.7		109.6		68.7		40.9	59.5
	Total consolidated revenue	$	5,441.4	$	5,224.3	$	217.1	4.2		10,561.0	$	10,168.5	$	392.5	3.9


Segment income*:
	Domestic	$	85.6	$	84.9	$	0.7	0.8	$	163.0	$	164.2	$	(1.2)	(0.7)
	Import		74.6		80.1		(5.5)	(6.9)		150.7		155.1		(4.4)	(2.8)
	Premium luxury		92.9		94.4		(1.5)	(1.6)		175.9		188.5		(12.6)	(6.7)
	Total		253.1		259.4		(6.3)	(2.4)		489.6		507.8		(18.2)	(3.6)

Corporate and other			(45.9)		(51.5)		5.6			(93.9)		(98.2)		4.3
Add: Floorplan interest expense			19.3		14.2		5.1			38.2		27.4		10.8
Operating income		$	226.5	$	222.1	$	4.4	2.0	$	433.9	$	437.0	$	(3.1)	(0.7)

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

Retail new vehicle unit sales:
	Domestic		30,654		27,871		2,783	10.0		58,407		53,621		4,786	8.9
	Import		38,346		40,279		(1,933)	(4.8)		74,127		77,193		(3,066)	(4.0)
	Premium luxury		16,654		17,095		(441)	(2.6)		32,144		32,991		(847)	(2.6)
			85,654		85,245		409	0.5		164,678		163,805		873	0.5


	Brand Mix - New Vehicle Retail Units Sold
			Three Months Ended June 30,				Six Months Ended June 30,
			2016 (%)		2015 (%)		2016 (%)	2015 (%)

	Domestic:
	Ford, Lincoln		14.9		15.8		15.0	16.1
	Chevrolet, Buick, Cadillac, GMC		11.1		10.2		11.2	10.0
	Chrysler, Dodge, Jeep, Ram		9.8		6.7		9.3	6.6
	Domestic total		35.8		32.7		35.5	32.7

	Import:
	Toyota		17.4		19.3		17.4	19.0
	Honda		13.1		11.3		12.6	11.1
	Nissan		7.7		9.8		8.4	9.9
	Other Import		6.6		6.8		6.6	7.2
	Import total		44.8		47.2		45.0	47.2

	Premium Luxury:
	Mercedes-Benz		8.4		8.4		8.3	8.2
	BMW		4.1		4.5		4.2	4.7
	Lexus		2.5		2.7		2.7	2.9
	Audi		2.3		2.1		2.2	2.0
	Other Premium Luxury (Land Rover, Porsche)		2.1		2.4		2.1	2.3
	Premium Luxury total		19.4		20.1		19.5	20.1

			100.0		100.0		100.0	100.0

AUTONATION, INC
UNAUDITED SUPPLEMENTARY DATA, Continued
($ in millions)




	Capital Expenditures / Stock Repurchases			Three Months Ended June 30,				Six Months Ended June 30,
				2016		2015		2016		2015

	Capital expenditures ⁽¹⁾		$	61.7	$	71.2	$	112.4	$	134.1
	Cash paid for acquisitions, net of cash acquired ⁽²⁾		$	6.3	$	45.4	$	262.9	$	73.1
	Proceeds from exercises of stock options		$	2.6	$	6.3	$	3.2	$	18.8
	Stock repurchases:
		Aggregate purchase price	$	50.0	$	50.0	$	420.6	$	59.1
		Shares repurchased (in millions)		1.0		0.8		8.9		0.9


		Floorplan Assistance and Expense		Three Months Ended June 30,						Six Months Ended June 30,
				2016		2015		Variance		2016		2015		Variance

	Floorplan assistance earned (included in cost of sales)		$	31.2	$	29.4	$	1.8	$	60.5	$	56.1	$	4.4
	New vehicle floorplan interest expense			(18.0)		(13.4)		(4.6)		(35.9)		(25.8)		(10.1)

		Net new vehicle inventory carrying benefit	$	13.2	$	16.0	$	(2.8)	$	24.6	$	30.3	$	(5.7)


		Balance Sheet and Other Highlights

				June 30, 2016		December 31, 2015		June 30, 2015

	Cash and cash equivalents		$	54.7	$	74.1	$	65.3
	Inventory		$	3,661.4	$	3,612.0	$	3,230.7
	Total floorplan notes payable		$	3,802.8	$	3,727.1	$	3,321.4
	Non-vehicle debt ⁽³⁾		$	2,708.1	$	2,356.5	$	2,124.3
	Equity		$	2,158.2	$	2,349.3	$	2,285.3

	New days supply (industry standard of selling days)			73 days		68 days		63 days
	Used days supply (trailing calendar month days)			44 days		43 days		36 days



		Key Credit Agreement Covenant Compliance Calculations⁽⁴⁾

	Leverage ratio					2.65x
	Covenant			less than or equal to		3.75x

	Capitalization ratio					63.8%
	Covenant			less than or equal to		70.0%

	⁽¹⁾	Includes accrued construction in progress and excludes property associated with capital leases entered into during the period.
	⁽²⁾	Excludes capital leases and deferred purchase price commitments.
	⁽³⁾	Pursuant to an accounting standard update effective January 1, 2016, all debt issuance costs have been reclassified, with the exception of those related to our revolving credit facility, as a direct reduction from the carrying amount of the related debt liability for both current and prior periods.
	⁽⁴⁾	Calculated in accordance with our credit agreement as filed with the SEC.

AUTONATION, INC.
UNAUDITED SAME STORE DATA
($ in millions, except per vehicle data)


		Operating Highlights		Three Months Ended June 30,							Six Months Ended June 30,
				2016		2015		$ Variance	% Variance		2016		2015		$ Variance	% Variance
Revenue:
		New vehicle	$	2,857.7	$	2,906.6	$	(48.9)	(1.7)	$	5,458.1	$	5,615.0	$	(156.9)	(2.8)
		Retail used vehicle		1,042.3		1,080.1		(37.8)	(3.5)		2,073.3		2,145.5		(72.2)	(3.4)
		Wholesale		126.5		105.3		21.2	20.1		243.0		202.0		41.0	20.3
		Used vehicle		1,168.8		1,185.4		(16.6)	(1.4)		2,316.3		2,347.5		(31.2)	(1.3)
		Finance and insurance, net		211.0		213.1		(2.1)	(1.0)		420.4		416.2		4.2	1.0
	Total variable operations			4,237.5		4,305.1		(67.6)	(1.6)		8,194.8		8,378.7		(183.9)	(2.2)
	Parts and service			773.3		756.8		16.5	2.2		1,530.6		1,479.9		50.7	3.4
	Other			50.0		44.5		5.5			84.0		74.9		9.1
Total revenue			$	5,060.8	$	5,106.4	$	(45.6)	(0.9)	$	9,809.4	$	9,933.5	$	(124.1)	(1.2)


Gross profit:
		New vehicle	$	152.7	$	163.5	$	(10.8)	(6.6)	$	292.3	$	322.2	$	(29.9)	(9.3)
		Retail used vehicle		80.9		94.4		(13.5)	(14.3)		168.1		190.4		(22.3)	(11.7)
		Wholesale		(2.3)		(5.2)		2.9			(4.8)		-		(4.8)
		Used vehicle		78.6		89.2		(10.6)	(11.9)		163.3		190.4		(27.1)	(14.2)
		Finance and insurance		211.0		213.1		(2.1)	(1.0)		420.4		416.2		4.2	1.0
	Total variable operations			442.3		465.8		(23.5)	(5.0)		876.0		928.8		(52.8)	(5.7)
	Parts and service			337.0		327.9		9.1	2.8		665.2		639.1		26.1	4.1
	Other			7.5		6.7		0.8			14.5		13.9		0.6
Total gross profit			$	786.8	$	800.4	$	(13.6)	(1.7)	$	1,555.7	$	1,581.8	$	(26.1)	(1.7)

Retail vehicle unit sales:
		New		79,420		83,178		(3,758)	(4.5)		152,617		159,659		(7,042)	(4.4)
		Used		52,275		55,599		(3,324)	(6.0)		105,463		112,377		(6,914)	(6.2)
				131,695		138,777		(7,082)	(5.1)		258,080		272,036		(13,956)	(5.1)

Revenue per vehicle retailed:
		New	$	35,982	$	34,944	$	1,038	3.0	$	35,763	$	35,169	$	594	1.7
		Used	$	19,939	$	19,427	$	512	2.6	$	19,659	$	19,092	$	567	3.0

Gross profit per vehicle retailed:
		New	$	1,923	$	1,966	$	(43)	(2.2)	$	1,915	$	2,018	$	(103)	(5.1)
		Used	$	1,548	$	1,698	$	(150)	(8.8)	$	1,594	$	1,694	$	(100)	(5.9)
		Finance and insurance	$	1,602	$	1,536	$	66	4.3	$	1,629	$	1,530	$	99	6.5
		Total variable operations⁽¹⁾	$	3,376	$	3,394	$	(18)	(0.5)	$	3,413	$	3,414	$	(1)	-


		Operating Percentages		Three Months Ended June 30,				Six Months Ended June 30,
				2016 (%)		2015 (%)		2016 (%)	2015 (%)

Revenue mix percentages:
		New vehicle		56.5		56.9		55.6	56.5
		Used vehicle		23.1		23.2		23.6	23.6
		Parts and service		15.3		14.8		15.6	14.9
		Finance and insurance, net		4.2		4.2		4.3	4.2
		Other		0.9		0.9		0.9	0.8
				100.0		100.0		100.0	100.0

Gross profit mix percentages:
		New vehicle		19.4		20.4		18.8	20.4
		Used vehicle		10.0		11.1		10.5	12.0
		Parts and service		42.8		41.0		42.8	40.4
		Finance and insurance		26.8		26.6		27.0	26.3
		Other		1.0		0.9		0.9	0.9
				100.0		100.0		100.0	100.0

Operating items as a percentage of revenue:
		Gross profit:
		New vehicle		5.3		5.6		5.4	5.7
		Used vehicle - retail		7.8		8.7		8.1	8.9
		Parts and service		43.6		43.3		43.5	43.2
		Total		15.5		15.7		15.9	15.9

⁽¹⁾	Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle, retail used vehicle, and finance and insurance gross profit by total retail vehicle unit sales.