AutoNation 2015 Annual Report Download - page 54

Table of Contents
facility. The amount available to be borrowed under this revolving credit facility is reduced on a dollar-for-dollar basis by the cumulative amount of any
outstanding letters of credit.
As further discussed in Note 11 of the Notes to Consolidated Financial Statements, there are various tax matters where the ultimate resolution may result in
us owing additional tax payments.
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As of December 31, 2015, we did not have any significant off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of SEC Regulation S-K.
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Our business, financial condition, results of operations, cash flows, and prospects, and the prevailing market price and performance of our common stock
may be adversely affected by a number of factors, including the matters discussed below. Certain statements and information set forth in this Annual Report
on Form 10-K, including without limitation statements regarding our strategic initiatives and expectations for the future performance of our franchises and
the automotive retail industry, as well as other written or oral statements made from time to time by us or by our authorized executive officers on our behalf,
constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. All statements other than statements of historical fact, including statements that describe our objectives, plans or goals
are, or may be deemed to be, forward-looking statements. Words such as “anticipate,” “expect,” “intend,” “goal,” “plan,” “believe,” “continue,” “may,”
“will,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Our forward-looking statements reflect
our current expectations concerning future results and events, and they involve known and unknown risks, uncertainties and other factors that are difficult to
predict and may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements
expressed or implied by these statements. These forward-looking statements speak only as of the date of this report, and we undertake no obligation to revise
or update these statements to reflect subsequent events or circumstances. 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 sensitive to changing economic conditions and various other factors. Our business and results of operations are
substantially dependent on new vehicle sales levels in the United States and in our particular geographic markets and the level of gross profit
margins that we can achieve on our sales of new vehicles, all of which are very difficult to predict.
• Our new vehicle sales are impacted by the incentive, marketing, and other programs of vehicle manufacturers.
• We are dependent upon the success and continued financial viability of the vehicle manufacturers and distributors with which we hold franchises.
• If we are not able to maintain and enhance our retail brands and reputation or to attract consumers to our own digital channels, or if events occur that
damage our retail brands, reputation, or sales channels, our business and financial results may be harmed.
• New laws, regulations, or governmental policies regarding fuel economy and greenhouse gas emission standards, or changes to existing standards,
may affect vehicle manufacturers’ ability to produce cost-effective vehicles or vehicles that consumers demand, which could adversely impact our
business, results of operations, financial condition, cash flow, and prospects.
• Natural disasters and adverse weather events can disrupt our business.
• We are subject to restrictions imposed by, and significant influence from, vehicle manufacturers that may adversely impact our business, financial
condition, results of operations, cash flows, and prospects, including our ability to acquire additional stores.
• We are subject to numerous legal and administrative proceedings, which, if the outcomes are adverse to us, could materially adversely affect our
business, results of operations, financial condition, cash flows, and prospects.
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