AutoNation May Retail New Vehicle Unit Sales Rise 15% - Update

(RTTNews) - Automotive retailer AutoNation, Inc. (AN) Wednesday said its total retail new vehicle unit sales in May, as reported to the applicable automotive manufacturers, increased 15 percent from last year. On a same-store basis, reported retail new vehicle unit sales were up 12 percent.

For the month of May, retail sales of new vehicles totaled 30,275 units, while same-store retail new vehicle sales were 29,471 units.

In Domestic segment, retail new vehicle unit sales rose 12 percent to 9,289, for Import, the increase was 17 percent to 15,413 units, and Premium Luxury segment saw sales growth of 14 percent to 5,573 units.

The company noted that the industry reporting for May 2014 included two more calendar days compared to the same month last year, including one additional Saturday.

AutoNation said it has prepared the reports based on standards established by the applicable automotive manufacturers, which differ from GAAP revenue recognition and other requirements.

The firm also announced that it has signed an agreement to acquire Roundtree Chrysler Dodge Jeep Ram in Mobile, Alabama, where AutoNation currently operates Ford and Honda franchises. The annual revenue for this store is about $95 million.

The acquisition, which is subject to manufacturer approval and other customary closing conditions, is expected to be completed in the third quarter of 2014.

AutoNation expects to report June 2014 retail new vehicle unit sales on July 2. The firm said industry reporting for June will have three fewer calendar days than June 2013.

AN closed Tuesday's trading at $57.70 on the NYSE.