AutoNation 2000 Annual Report Download - page 53

Download and view the complete annual report

Please find page 53 of the 2000 AutoNation annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 167

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167

2000 1999 1998
---------- ----------- -------------
Property and equipment ........................................... $ 21.9 $ 145.5 $ 403.5
Intangible and other assets ...................................... 169.0 942.7 1,290.8
Working capital .................................................. 111.5 450.3 744.0
Debt assumed ..................................................... (109.2) (623.8) (1,085.1)
Other liabilities ................................................ (2.3) (35.6) (75.7)
Common stock issued .............................................. -- -- (473.2)
-------- -------- ----------
Cash used in business acquisitions, net of cash acquired ......... $ 190.9 $ 879.1 $ 804.3
======== ======== ==========
The Company's unaudited pro forma consolidated results of continuing
operations assuming acquisitions accounted for under the purchase method of
accounting had occurred at the beginning of each period presented are as
follows for the years ended December 31:
2000 1999
-------------- --------------
Revenue .............................................................. $ 21,113.1 $ 22,379.3
Income (loss) from continuing operations ............................. $ 328.8 $ (12.0)
Diluted earnings (loss) per share from continuing operations ......... $ .91 $ (.03)
The unaudited pro forma results of continuing operations are presented for
informational purposes only and may not necessarily reflect the future results
of operations of the Company or what the results of operations would have been
had the Company owned and operated these businesses as of the beginning of each
period presented.
As described in Note 10, Restructuring and Impairment Charges
(Recoveries), Net, the Company has been divesting of certain non-core
franchised automotive dealerships. During 2000, the Company received
approximately $89.7 million of cash from the divestiture of franchised
automotive dealerships. Gains and losses on divestitures are included in Asset
Impairment Charges (Recoveries) in the accompanying Consolidated Income
Statements and were not material during 2000. The Company signed a definitive
agreement to sell its Flemington dealer group. The Company expects to complete
the sale in the second quarter of 2001.
52
AUTONATION, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)
2. BUSINESS ACQUISITIONS AND DIVESTITURES -- (Continued)
In November 2000, the Company completed the divestiture of its outdoor
media business for a purchase price of approximately $104.0 million. In
connection with the sale, the Company entered into a prepaid $15.0 million
advertising agreement and therefore, received net proceeds of $89.0 million.
The Company recognized a pre-tax gain of $53.5 million on the sale which has
been included in Other Income, Net in the accompanying 2000 Consolidated Income
Statement.
Cash received from the divestiture of franchised automotive dealerships in
1999 and 1998 was $131.3 million and $55.1 million, respectively. Gains and
losses on divestitures, other than those recorded in the Company's 1999
restructuring and impairment charges, were not material in 1999 and 1998.
3. NOTES PAYABLE AND LONG-TERM DEBT