FORT LAUDERDALE, Fla.,
Jan. 16, 2018 /PRNewswire/
-- AutoNation, Inc. (NYSE: AN), America's largest
automotive retailer, today announced that it expects a benefit of
approximately $41 million in the
fourth quarter of 2017, or approximately $0.45 per share, due to the recent tax reform
bill and the one-time impact on its deferred tax liability.
AutoNation also anticipates a benefit of approximately
$75 million to $100 million, or approximately $0.80 to $1.10 per
share, for the full year 2018, resulting from the decrease in the
corporate federal tax rate.
AutoNation will use the savings from tax reform to invest in its
future and its employees, through enhancing its benefits programs,
including launching an innovative cancer program to assist
employees and family members who were recently diagnosed with
cancer, and investing in progressive training programs that will
allow its associates to better serve its customers and drive their
career advancement. The Company also plans to accelerate its
brand extension strategy as well as further expand its Drive Pink
initiatives.
AutoNation's Chairman, CEO and President, Mike Jackson, said, "We are excited about the
pro-growth environment for business in the U.S., which includes the
recently signed tax reform bill. As a U.S.-based company, our
employees, customers and shareholders will benefit greatly from a
reduction in our corporate tax rates."
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.
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.
FINANCIAL ESTIMATES
The financial estimates
presented in this release are preliminary and may change. These
estimates include calculations or figures that have been prepared
internally by management and have not been reviewed or audited by
our independent registered public accounting firm. There can be no
assurance that AutoNation's actual results will not differ from the
estimates presented herein and such changes could be material.
These estimates should not be viewed as a substitute for full
financial statements prepared in accordance with GAAP and are not
necessarily indicative of the results to be achieved for any future
periods. Per share estimates are based on internal estimates
for the weighted average number of shares outstanding, on a diluted
basis, as of December 31, 2017.
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," "could," and variations of such words
and similar expressions are intended to identify such
forward-looking statements. Statements regarding the impact of tax
reform in the United States and
our expectations for future results, as well as other 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 successfully implement,
and customer adoption of, our brand extension strategies; our
ability to identify, acquire, and build out suitable locations in a
timely manner; our ability to maintain and enhance our retail
brands and reputation and to attract consumers to our own digital
channels; new or increased taxes or tariffs; changes in rules
affecting deferred tax assets or liabilities; the preliminary
nature of the Company's forecasts; 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.
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SOURCE AutoNation, Inc.