AutoNation 2001 Annual Report Download - page 30

In 2002, we will focus on cost management initiatives in the areas of
compensation, advertising and general and administrative expenses. However, we
expect an increase in insurance and benefit costs in 2002 compared to 2001,
which would have the effect of offsetting some of these expected cost savings.
Depreciation and amortization were $151.9 million, $133.8 million and
$123.0 million for the years ended December 31, 2001, 2000 and 1999,
respectively. Depreciation and amortization as percentages of revenue were .8%,
.7% and .6% for the years ended December 31, 2001, 2000 and 1999 respectively.
The increases are primarily the result of capital expenditures. As further
discussed under the heading "New Accounting Pronouncements", we are currently
analyzing the impact of SFAS 142. Based on preliminary estimates, substantially
all of our amortization expenses will be eliminated.
Loan and lease underwriting losses (income) were $89.6 million, $6.0
million and $(12.8) million for the years ended December 31, 2001, 2000 and
1999, respectively. See discussion under heading "Loan and Lease Underwriting
Activities". Restructuring and impairment charges (recoveries), net were $4.5
million, $(20.4) million and $416.4 million for the years ended December 31,
2001, 2000 and 1999, respectively. See discussion under heading "Restructuring
Activities".
Other gains for the year ended December 31, 2001 of $19.3 million primarily
consists of the pre-tax gain from the sale of the Flemington dealer group in
April 2001.
Same Store Operating Data:
We have presented below our operating results for the years ended December
31, 2001 and 2000 on a same store basis to reflect our internal performance.
Same store operating results include the results of businesses that were owned
and operated by us during both of the years included in the comparison.
The following table sets forth: (1) the components of same store revenue,
with component percentages of total revenue; (2) the components of same store
gross margin, with gross margin percentages of applicable
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same store revenue; (3) same store selling, general and administrative expenses;
(4) same store performance; and (5) retail vehicle same store unit sales:
YEARS ENDED DECEMBER 31,
---------------------------------------------------
2001 % 2000 % % VARIANCE
($ IN MILLIONS) --------- ------ --------- ----- ----------
Revenue:
New vehicle..................................... $11,441.0 59.9 $11,974.5 61.2 (4.5)
Used vehicle.................................... 3,701.1 19.4 3,625.8 18.5 2.1
Parts and service............................... 2,305.7 12.1 2,224.2 11.4 3.7
Finance and insurance, net...................... 463.8 2.4 411.8 2.1 12.6
Other........................................... 1,178.3 6.2 1,342.7 6.8 (12.2)
--------- ------ --------- -----
Total revenue............................ $19,089.9 100.0 $19,579.0 100.0 (2.5)
========= ====== ========= =====
Gross margin:
New vehicle..................................... $ 800.4 7.0 $ 827.9 6.9 (3.3)
Used vehicle.................................... 407.5 11.0 410.5 11.3 (.7)
Parts and service............................... 996.4 43.2 951.4 42.8 4.7
Finance and insurance........................... 463.8 100.0 411.8 100.0 12.6
Other........................................... 67.1 5.7 73.1 5.4 (8.2)
--------- ---------
Total gross margin....................... 2,735.2 14.3 2,674.7 13.7 2.3
S,G&A-Store....................................... 1,963.1 10.3 1,909.8 9.8 2.8
--------- ---------
Store performance........................ $ 772.1 4.0 $ 764.9 3.9 .9
========= =========
Retail vehicle unit sales:
New............................................. 431,000 470,000 (8.3)