AutoNation 2001 Annual Report Download - page 40

investments during 2001 related to required improvements of our existing
dealership facilities. The balance of our capital investments during 2001
related to upgrades to existing dealership facilities and construction of new
facilities that we generally target to generate rates of return consistent with
our investment goal of a 15% after-tax rate of return. We will make additional
facility and infrastructure upgrades and improvements from time to time as we
identify projects that are required to maintain our current business or that we
expect to provide us with acceptable rates of return. We expect capital
expenditures in 2002 to be approximately $150 million. The 2000 decrease in
capital expenditures is primarily due to fewer acquisitions, and the closures of
the megastores, which had driven capital expenditures higher in 1999.
Proceeds from the sale of property and equipment and assets held for sale
were $98.3 million, $129.9 million and $88.4 million during the years ended
December 31, 2001, 2000 and 1999, respectively. These amounts are primarily from
the sales of megastore and other properties held for sale. The 2000 amount also
includes proceeds from the sale of the building occupied by ANC Rental.
Funding of installment loan receivables, net of collections, totaled $474.9
million, $562.3 million and $1.6 billion in 2001, 2000 and 1999 respectively.
Related proceeds from securitization of installment loan contracts were $557.2
million, $720.3 million and $1.6 billion in 2001, 2000 and 1999 respectively. As
discussed under the heading "Loan and Lease Underwriting Activities", the
Company exited the auto loan underwriting business in December 2001.
During 2001, we moved various invested restricted cash deposits related to
certain insurance programs to a series of restricted investments. See Note 4,
Restricted Assets and Reinsurance, of the Notes of Consolidated Financial
Statements for additional information.
Cash used in business acquisitions was $92.0 million, $313.3 million and
$914.0 million for the years ended December 31, 2001, 2000 and 1999,
respectively. The decrease in cash used in business acquisitions is primarily
due to a planned reduction in acquisition activity including our shift in 2000
to acquire single dealerships or small dealership groups focused in key existing
markets. Cash used in business acquisitions
35
during 2001, 2000 and 1999 includes $22.3 million, $122.4 million and $34.9
million in deferred purchase price for certain prior year automotive retail
acquisitions. See discussion under the heading "Business Acquisitions and
Divestitures" and in Note 18, Acquisitions and Divestitures, of the Notes to
Consolidated Financial Statements.
Cash received from business divestitures was $61.2 million, $178.7 million
and $131.3 million for the years ended December 31, 2001, 2000 and 1999,
respectively. The 2001 cash received primarily represents the net proceeds from
the sale of the Flemington dealer group as further discussed under the heading,
"Business Acquisitions and Divestitures" and in Note 18, Acquisitions and
Divestitures, of the Notes to Consolidated Financial Statements.
In July 1998, our former solid waste subsidiary, Republic Services,
completed an initial public offering resulting in proceeds of approximately $1.4
billion. In May 1999, we sold substantially all of our interest in Republic
Services in a public offering resulting in proceeds of approximately $1.8
billion. Proceeds from the offerings were used to repay non-vehicle debt,
finance acquisitions, acquire shares under our share repurchase programs and
invest in our business. During 2000, we sold substantially all of our remaining
common stock of Republic Services, resulting in proceeds of approximately $48.2
million.
CASH FLOWS FROM FINANCING ACTIVITIES
Cash flows from financing activities include revolving credit financings
and payments, proceeds from senior unsecured notes issued, repayments of
acquired debt, treasury stock purchases and other transactions as further
described below.