And now, I'll turn the call over to AutoNation's Chairman and Chief Executive Officer, Mike Jackson.Michael J. Jackson Good morning. Thank you for joining us. Today, we reported earnings per share from continuing operations of $0.48, a record for third quarter results, up 23% compared to the $0.39 in the third quarter of 2010. Operating income increased 19% to $144 million compared to the period a year ago. Third quarter 2011 revenue totaled $3.5 billion compared to $3.3 billion in the year-ago period, an increase of 7%, driven primarily by higher new and used vehicle average selling prices. Based on CNW Research data, in the third quarter, total U.S. industry new retail vehicle unit sales increased 1%. In the third quarter, AutoNation's total new vehicle unit sales were flat and, on a same-store basis, declined 2% as the Japanese earthquake affected availability of vehicles produced by the Japanese manufacturers. This quarter, we once again demonstrated that our diversified business model is the right strategy, as well as our ability to rapidly adapt to change and execute effectively in a changing marketplace. In light of the Japanese supply constraints, we adjusted our operating plan to optimize our inventories and maximize gross profit. While shipments from the Japanese manufacturers improved in the third quarter, the inventory levels for these vehicles remained constrained. We would expect that the improving supply environment will result in sequentially lower margins on these vehicles in the fourth quarter. I'll now turn the call over to Chief Financial Officer, Mike Short. Mike Short Thank you, Mike, and good morning, ladies and gentlemen. For the third quarter, we reported net income from continuing operations of $71 million or $0.48 per share versus $59 million or $0.39 per share during the third quarter of 2010, a 23% improvement on a per-share basis. There were no adjustments to net income in either period.
Last quarter, we indicated that we expected to receive the remaining incentives under the premium luxury program during the second half of 2011. We did not receive any of these incentives during the third quarter but expect to receive approximately $2 million in the fourth quarter of 2011. This compares to gross profit from incentives of $13 million received in the fourth quarter of 2010.Third quarter revenue increased $233 million or 7% compared to prior year, and gross profit improved by $30 million or 5% for the quarter. SG&A as a percentage of gross profit was 71.5% for the quarter, which represents a 240-basis-point improvement compared to the year-ago period. Net new vehicle floorplan was a benefit of $6.6 million for the quarter, an increase of $1.9 million compared to the $4.7 million benefit in the third quarter of 2010. This improvement was due to lower floorplan interest expense driven by lower credit spreads compared to the prior-year period. Floorplan assistant -- assistance rates also increased compared to the third quarter of 2010. Floorplan debt was approximately $1.51 billion at quarter end, a decrease of approximately $162 million from June 30, 2011, in line with the inventory levels. Non-vehicle interest expense was $16.4 million for the quarter, an increase compared to the $16.1 million we reported in the third quarter of 2010 due to higher debt levels. During the quarter, we borrowed $25 million under our revolving credit facility, resulting in $300 million of outstanding borrowings under the revolving credit facility at the end of September. Read the rest of this transcript for free on seekingalpha.com