AutoNation 2001 Annual Report Download - page 21

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Sales Finance Act and the Florida Deceptive and Unfair Trade Practices Act by
allegedly failing to deliver executed copies of retail installment contracts to
customers of our former used vehicle megastores. On October 31, 2000, the court
certified the class of customers on whose behalf the action would proceed. In
July 2001, Florida's Fourth District Court of Appeals upheld the certification
of the class.
Many of our Texas dealership subsidiaries have been named in three class
actions brought against the Texas Automobile Dealer's Association and new
vehicle dealerships in Texas that are members of the TADA. The actions allege
that since January 1994 Texas dealers have deceived customers with respect to a
vehicle inventory tax and violated federal antitrust and other laws as well. Two
of the cases are currently pending in Texas state court and the third is pending
in the federal district court for the Eastern District of Texas.
We intend to vigorously defend ourselves and assert available defenses with
respect to each of the foregoing matters. Further, we have certain insurance
coverage and rights of indemnification with respect to certain aspects of the
foregoing matters. However, a settlement or an adverse resolution of one or more
of these matters may result in the payment of significant costs and damages,
which could have a material adverse effect on our business, financial condition,
results of operations, cash flows and prospects.
In addition to the foregoing cases, we are also a party to numerous other
legal proceedings that arose in the conduct of our business. We do not believe
that the ultimate resolution of these matters will have a material adverse
effect on our business, results of operations, financial condition or cash
flows. However, the results of these matters cannot be predicted with certainty,
and an unfavorable resolution of one or more of these matters could have a
material adverse effect on our business, financial condition, results of
operations, cash flows and prospects.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of our stockholders during the fourth
quarter of the fiscal year ended December 31, 2001.
17
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS
MARKET INFORMATION, HOLDERS AND DIVIDENDS
Our common stock is traded on The New York Stock Exchange under the symbol
"AN." The following table sets forth, for the periods indicated, the high and
low sales prices per share of the common stock as reported on the consolidated
transaction reporting system.
HIGH LOW
------ -----
2001
Fourth Quarter.............................................. $13.07 $8.53
Third Quarter............................................... 12.24 7.75
Second Quarter.............................................. 12.59 8.61
First Quarter............................................... 9.24 4.94
2000
Fourth Quarter.............................................. $ 7.19 $4.63
Third Quarter............................................... 7.31 5.63
Second Quarter.............................................. 10.75 7.00
First Quarter............................................... 9.31 6.13