February 8, 2023

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AutoNation Q4 adjusted profit surges 88{ed0b873b90f1b87a4f3b347f1646a477c6eee9bccb9dcbe5ac9cb67a3d16495a} on resilient demand; CEO Jackson steps down as chairman

AutoNation Inc.’s adjusted internet money from continuing functions soared on increased finance and insurance and new-auto gross revenue, as the vehicle retail giant reported it has a new chairman and has exited its holdings in on-line retailer Vroom Inc.

The nation’s biggest new-auto retailer reported it has elected Rick Burdick, 69, a board member considering that 1991 and guide impartial director considering that late 2018, as chairman of the board. The organization reported as section of its succession setting up and previously introduced method to separate the chairman and CEO roles that Burdick succeeds Jackson in the chairman function, powerful Feb. fifteen. Jackson, 72, remains CEO of AutoNation and a board member.

AutoNation reported final yr that it programs to name a new CEO in early 2022, at which point Jackson would retire.

AutoNation, which in October 2018 had invested $50 million in Vroom, disclosed on Tuesday as section of its fourth-quarter earnings that for the duration of the quarter it sold 3.one million shares in Vroom for $a hundred and five million and a funds achieve of $seventy eight million. And in the to start with quarter, it sold its remaining stake in the startup for $109 million, netting a funds achieve of $87 million.

Fourth-quarter earnings climbed four.3 percent to $5.79 billion. Internet money slipped 3.nine percent to $151.5 million.

The retailer’s $152 million in internet money from continuing functions was dinged by a $62 million just after-tax, noncash accounting decline similar to its expenditure in Vroom. Its fourth-quarter 2019 internet money from continuing functions of $158 million bundled $twenty million in just after-tax gains from retail outlet and home profits and a $19 million just after-tax achieve in its stake in Vroom.

The organization reported its adjusted internet money from continuing functions climbed 88 percent to $213.one million.

As section of its enlargement of AutoNation United states merchants, which market made use of automobiles only, the organization reported it programs to open up five areas this yr and ten new merchants in 2022. It reported merchants to open up by the close of 2021 contain two merchants in the Denver sector and a single each and every in Phoenix, Austin and San Antonio.