AutoNation 2000 Annual Report Download - page 25

2000 largely resulting from the closure of our used vehicle megastores. Used
vehicle gross margin percentages in 2000 increased primarily as a result of
improved management of used vehicle inventories.
Fixed operations revenue was $2.33 billion, $2.22 billion and $1.38
billion for the years ended December 31, 2000, 1999 and 1998, respectively.
Fixed operations gross margins were $999.7 million, $933.8 million and $571.6
million or, as percentages of fixed operations revenue, 42.8%, 42.0% and 41.3%
for the years ended December 31, 2000, 1999 and 1998, respectively. Increases
are attributable to acquisitions and higher pricing.
Finance and insurance revenue and gross margins were $431.8 million,
$423.4 million and $288.6 million for the years ended December 31, 2000, 1999
and 1998, respectively. The increases are due to acquisitions and a higher
percentage of our customers buying finance and insurance products.
Store selling, general and administrative expenses were $2.02 billion,
$2.09 billion and $1.30 billion or, as percentages of total revenue, 9.8%,
10.4% and 10.3% for the years ended December 31, 2000, 1999 and 1998,
respectively. The 2000 decreases are primarily due to successful implementation
of our cost-cutting initiatives. The increase as a percentage of revenue in
1999 over 1998 is primarily due to higher megastore fixed costs and costs
incurred in connection with the megastore closures and other one-time costs.
Store performance was $1.01 billion, $839.2 million and $629.8 million or,
as percentages of total revenue, 4.9%, 4.2% or 5.0% for the years ended
December 31, 2000, 1999 and 1998, respectively. The increases in aggregate
dollars are primarily due to acquisitions coupled with margin expansion. The
2000 increase as a percentage of total revenue is primarily due to lower S,G&A
expenses. The 1999 decrease as a percentage of revenue is due to lower gross
margins and higher S,G&A expenses.
Corporate S,G&A was $125.2 million, $190.0 million and $86.5 million or,
as a percentage of total revenue, .6%, 1.0% and .7%, for the years ended
December 31, 2000, 1999 and 1998, respectively. The 2000 decrease is primarily
due to successful implementation of our 1999 cost-cutting initiatives as
described in "Restructuring Activities" below. The 1999 increase is primarily
due to increased headcount and spending for various corporate initiatives which
have been curtailed or eliminated in conjunction with our 1999 restructuring
activities further described below.
Depreciation and amortization were $133.8 million, $123.0 million and
$79.9 million for the years ended December 31, 2000, 1999 and 1998,
respectively. Depreciation and amortization as percentages of revenue were .7%,
.6% and .6% for the years ended December 31, 2000, 1999 and 1998, respectively.
S,G&A - Property carrying costs represents costs associated with megastore
and other properties held for sale. We incurred $30.9 million of property
carrying costs during the year ended December 31, 2000. We expect these costs
to be less than $10 million in 2001.
Discontinued Business Segments
On June 30, 2000, we completed the spin-off of our former automotive
rental businesses, which have been organized under ANC Rental Corporation, by
distributing 100% of ANC Rental's common
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