http://www.morningstar.com/earnings/54508555-autonation-inc-an-q2-2013.aspx

AutoNation Inc AN
Q2 2013 Earnings Call Transcript

Transcript Call Date 07/18/2013

Operator: Thank you for standing by, and welcome to AutoNation's Second Quarter 2013 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the presentation, we will conduct a question-and-answer session. Today's conference call is being recorded. If you have any objections you may disconnect.

I will now turn the call over to Ms. Cheryl Scully, Treasurer and Vice President of Investor Relations for AutoNation. Ma'am, you may begin.

Cheryl Scully - Treasurer and VP, IR: Good morning and welcome to AutoNation's second quarter 2013 conference call and webcast. Leading our call today will be Mike Jackson, our Chairman and Chief Executive Officer; Mike Maroone, our President and Chief Operating Officer; and Mike Short, our Chief Financial Officer; and Jon Ferrando, our Executive Vice President, responsible for M&A. Following their remarks, we will open up the call for questions. Robert Quartaro and I will also be available by phone following the call to address any additional questions that you may have.

Before we begin, let me read our brief statement regarding forward-looking comments and the use of non-GAAP financial measures. Certain statements and information on this call will constitute forward-looking statements within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks, which may cause the actual result or performance to differ materially from expectations. Additional discussions of factors that could cause actual results to differ materially are contained in our press release issued earlier today and our SEC filings, including our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q and current reports on Form 8-K.

Certain non-GAAP financial measures as defined under SEC rules will be discussed on this call. Reconciliations are provided in our press release, which is available on our website at investors.autonation.com.

Now, I'll turn the call over to AutoNation's Chairman and Chief Executive Officer, Mike Jackson.

Mike Jackson - Chairman and CEO: Good morning, and thank you for joining us. Today, we reported an all-time record quarterly earnings per share from continuing operations of $0.73 in the second quarter, a 11% increase as compared to adjusted EPS of $0.66 for the same period in the prior year. Second quarter 2013 revenue totaled $4.4 billion compared to $3.9 billion in the year ago period, an increase of 13%, driven by stronger performance in all of our business sectors.

In the second quarter, AutoNation's new vehicle unit sales increased 11% and used vehicle unit sales increased 13%. Our coast-to-coast branding rollout unifying over 200 franchises, which began in February has been completed on time and on budget. Incremental branding cost was $0.06 in the second quarter and $0.09 year-to-date. AutoNation is well-positioned to capitalize on the continued auto recovery with an optimal brand and market mix and a disciplined cost structure. We continue to drive strong results during the multi-year recovery in auto retail.

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