AutoNation 2001 Annual Report Download - page 81

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aggregate of approximately $.5 million and $.3 million, respectively, under such
leases.
In March 2000, the Company purchased a jet from Republic Services, Inc. for
approximately $4.7 million. In January 2001, the Company sold the jet to
Republic Services for approximately $4.7 million, which was based on its then
current net asset value plus the agreed upon value of certain repairs performed
by the Company immediately prior to the sale. Mr. Hudson and Mr. Huizenga are
Vice Chairman and Secretary and Chairman of the Board, respectively, of Republic
Services.
The Company subleases office space at its corporate headquarters to
Republic Services. During 2001, 2000 and 1999, Republic Services paid the
Company approximately $.7 million, $.5 million and $.3 million, respectively,
pursuant to this lease. The lease runs through February 28, 2003.
The Company leases space at its computer data center to NationsRent, Inc.
at a monthly rental rate of approximately $5,000 from 1999 to March 2001 when
the monthly rental rate increased to $15,000. Mr. Huizenga and Mr. Hudson are
Directors of NationsRent and Mr. Hudson owns approximately 1.8% of NationsRent's
outstanding common stock. Additionally, until December 2001, Wayne Huizenga,
Jr., the son of Mr. Huizenga, owned approximately 20.9% of NationsRent's
outstanding common stock through H. Family Investments, Inc., a Florida
corporation controlled by him. Starting March 2000, the Company also subleased
to NationsRent certain office space at a monthly rental rate of approximately
$61,000. In January 2002, based upon prevailing market conditions, the Company
amended the office sublease to provide for a monthly rental rate of
approximately $52,000. In December 2001, H. Family Investments, Inc. sold all of
its NationsRent common stock. In December 2001, NationsRent filed a voluntary
petition for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code in
Wilmington, Delaware. Due to the bankruptcy of NationsRent, some or all of
NationsRent's obligations under the foregoing agreements may be extinguished or
the Company's claims thereunder may be unenforceable.
During March 2002, the Company sold approximately 100 fleet vehicles to
AutoZone, Inc. Mr. Lampert, a Director of the Company, is a Director of AutoZone
and is Chairman, Chief Executive Officer and a controlling principal of ESL
Investments, Inc., which effectively owns approximately 24% of the outstanding
common stock of AutoZone. Mr. Crowley, a Director of the Company, is the
President and Chief Operating Officer of ESL Investments. The vehicles were sold
for an aggregate price of approximately $1.2 million and a mark-up fee for the
Company of approximately $22,000.
During 2000 and 1999, the Company hired the management consulting,
marketing research and public relations firm of B&C Associates, Inc. for certain
management consulting services in exchange for the payment of approximately $.1
million and $.5 million, respectively. Mr. Brown, a Company Director, is the
Chairman, Chief Executive Officer and principal owner of B&C Associates.
74
AUTONATION, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
During 2001, 2000 and 1999, the Company engaged the law firm of Akin, Gump,
Strauss, Hauer & Feld, L.L.P. for various legal services totaling $.4 million,
$.8 million and $1.3 million, respectively. Mr. Burdick, a Director of the
Company, is a partner in that law firm.
During 1999, the Company purchased $.6 million worth of commercial
advertisements on SportsChannel Florida, a cable sports channel. In 1999,
SportsChannel Florida was 70% owned by Front Row Communications, which in turn
is wholly owned by Mr. Huizenga. SportsChannel Florida was sold by Front Row
Communications in January 2000.
20. SUPPLEMENTAL CASH FLOW INFORMATION