AutoNation 2001 Annual Report Download - page 23

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"Introduction," "Recent Developments," "Business Strategy," and "Risk Factors"
sections of this Form 10-K and our Consolidated Financial Statements and notes
thereto included elsewhere in this Form 10-K.
CONSOLIDATED RESULTS OF OPERATIONS
AutoNation, Inc. is the largest automotive retailer in the United States.
As of December 31, 2001, we owned and operated 368 new vehicle franchises from
278 dealerships located in major metropolitan markets in 17 states,
predominantly in the Sunbelt region of the United States. Our dealerships, which
we believe include some of the most recognizable and well-known dealerships in
our key markets, sell 35 different brands of new vehicles. The core brands of
vehicles that we sell, representing approximately 95% of the new vehicles that
we sold in 2001, are manufactured by Ford, General Motors, DaimlerChrysler,
Toyota, Nissan, Honda and BMW.
We offer a diversified range of automotive products and services beyond new
vehicles, such as used vehicles, vehicle maintenance and repair services,
vehicle parts, extended service contracts, insurance products and other
aftermarket products, and we arrange financing for vehicle purchases through
third-party finance sources. We believe that the significant scale of our
operations and the quality of our managerial talent allow us to achieve
efficiencies in our key markets by, among other things, reducing redundant
operating expenses, improving asset management and sharing and implementing best
practices across our dealerships.
19
Floorplan interest expense, which previously was classified as interest
expense below operating income, is now presented as a component of cost of
operations in the accompanying Consolidated Income Statements to provide more
meaningful information regarding our margin performance. In addition, loan and
lease underwriting losses (income) related to our finance and lease underwriting
businesses, which we have exited, have been presented separately for all periods
presented in the accompanying Consolidated Income Statements. Prior period
amounts have been reclassified to conform with the current presentation.
The following is a summary of our Consolidated Income Statements both in
gross dollars and on a diluted per share basis for the periods indicated (in
millions, except per share data):
2001 2000 1999
----------------- ----------------- -----------------
DILUTED DILUTED DILUTED
PER PER PER
DOLLARS SHARE DOLLARS SHARE DOLLARS SHARE
------- ------- ------- ------- ------- -------
Income (loss) from continuing operations........ $245.0 $ .73 $328.1 $ .91 $(31.5) $(.07)
------ ------ ------ ----- ------ -----
Income (loss) from discontinued operations, net
of income taxes:
Automotive rental............................. (12.7) (.04) 13.1 .03 (71.0) (.17)
Solid waste services.......................... -- -- -- -- 40.4 .10
Gain (loss) on disposal of segments............. -- -- (11.3) (.03) 345.0 .80
------ ------ ------ ----- ------ -----
(12.7) (.04) 1.8 -- 314.4 .73
------ ------ ------ ----- ------ -----
Net income...................................... $232.3 $ .69 $329.9 $ .91 $282.9 $ .66
====== ====== ====== ===== ====== =====
The following factors have impacted our financial condition and results of
operations and may cause our reported financial data not to be indicative of our
future financial condition and operating results:
- Growth Through Acquisitions: From 1997 through 1999, we
aggressively expanded our automotive retail operations through the
acquisition of franchised automotive dealerships. Since 1999, we