AutoNation 2000 Annual Report Download - page 38

subject to known and unknown risks, uncertainties and other factors that may
cause our actual results, performance or achievements to be materially
different from any future results, performance or achievements expressed or
implied by the forward-looking statements. The risks, uncertainties and other
factors that our stockholders and prospective investors should consider
include, but are not limited to, the following: the automotive retail industry
is cyclical and is highly sensitive to changing economic conditions; we are in
the midst of an industry and general economic slowdown that could materially
adversely impact our business; we are substantially dependent on vehicle
manufacturers; we are subject to operating restrictions imposed by vehicle
manufacturers; we are subject to extensive governmental regulation; we are
subject to numerous legal and administrative proceedings; we may be required to
perform under certain credit enhancements and guarantees with respect to ANC
Rental Corporation; we face significant competition in the automotive retail
industry; we need substantial capital; we may not be able to successfully
execute our strategy; we may have difficulty expanding through acquisitions of
franchised automotive dealerships in our key markets; the loss of key personnel
could affect our operations; we are subject to residual value risk and consumer
credit risk in connection with our lease portfolio; and we are also subject to
consumer credit risk in connection with our installment receivables portfolio.
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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Page
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Report of Independent Certified Public Accountants ...................................... 38
Consolidated Balance Sheets as of December 31, 2000 and 1999 ............................ 39
Consolidated Income Statements for each of the Three Years Ended December 31, 2000 ...... 40
Consolidated Statements of Shareholders' Equity for each of the Three Years Ended
December 31, 2000 ..................................................................... 41
Consolidated Statements of Cash Flows for each of the Three Years Ended December 31,
2000 .................................................................................. 42
Notes to Consolidated Financial Statements .............................................. 43
Financial Statement Schedule II, Valuation and Qualifying Accounts and Reserves, for each
of the Three Years Ended December 31, 2000 ............................................ 74
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REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Shareholders and Board of Directors of AutoNation, Inc.:
We have audited the accompanying consolidated balance sheets of
AutoNation, Inc. (a Delaware corporation) and subsidiaries as of December 31,
2000 and 1999, and the related consolidated statements of income, shareholders'
equity and cash flows for each of the years in the three-year period ended
December 31, 2000. These consolidated financial statements and the schedule
referred to below are the responsibility of the Company's management. Our
responsibility is to express an opinion on these consolidated financial
statements and the schedule based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test