AutoNation 2000 Annual Report Download - page 21

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brands, including Mercedes-Benz, BMW, Lexus and Porsche. In total, we offer 35
different brands of vehicles.
During 2000, we expanded our financial reporting by providing separate
disclosure of floorplan interest expense, depreciation and amortization in the
accompanying Consolidated Income Statements. Floorplan interest expense, which
previously was presented as a component of cost of operations, is now
classified as interest expense below operating income. In addition, within
management's discussion and analysis, we have also expanded our disclosures to
provide revenue and gross margin detail by line of business. Prior periods have
been reclassified to conform with the current presentation.
The following is a summary of our Consolidated Income Statements both in
gross dollars and on a diluted per share basis for the periods indicated (in
millions, except per share data):
2000 1999 1998
------------------------- ------------------------- ------------------------
Gross Diluted Gross Diluted Gross Diluted
Dollars Per Share Dollars Per Share Dollars Per Share
----------- ----------- ----------- ----------- ----------- ----------
Income (loss) from continuing
operations ................................ $ 328.1 $ .91 $ (31.5) $ (.07) $ 225.8 $ .48
-------- ------ -------- ------ -------- ------
Income (loss) from discontinued
operations, net of income taxes:
Automotive rental ......................... 13.1 .03 ( 71.0) (.17) 108.8 .23
Solid waste services ...................... -- -- 40.4 .10 153.3 .33
Gain (loss) on disposal of segments ......... ( 11.3) (.03) 345.0 .80 11.6 .02
-------- ------ -------- ------ -------- ------
1.8 -- 314.4 .73 273.7 .58
-------- ------ -------- ------ -------- ------
Net income .................................. $ 329.9 $ .91 $ 282.9 $ .66 $ 499.5 $ 1.06
======== ====== ======== ====== ======== ======
19
The following factors have impacted our financial condition and results of
operations and may cause our reported financial data not to be indicative of
our future financial condition and operating results:
o Growth Through Acquisitions: From 1996 through 2000, we expanded our
automotive retail operations through the acquisition of franchised
automotive dealerships as discussed under the heading "Business
Acquisitions and Divestitures."
o Spin-Off of ANC Rental Corporation: In June 2000, we completed the
tax-free spin-off of our former automotive rental businesses. These
businesses have been accounted for as discontinued operations as further
discussed under the heading "Discontinued Business Segments."
o Sale of Republic Services, Inc.: In 1998, our former solid waste services
business completed an initial public offering of 36.1% of its common
stock. In 1999, we sold substantially all of our remaining interests in
Republic Services to the public. See further discussion under the heading
"Discontinued Business Segments."
o Restructuring: In 1999, we restructured certain of our operations to exit
our former used vehicle megastore business and to reduce our corporate
workforce as further discussed under the heading "Restructuring
Activities."