AutoNation 2007 Annual Report Download - page 42

Table of Contents
Cash Flows from Financing Activities
Net cash flows from financing activities primarily include treasury stock purchases, stock option exercises, debt activity, and changes in
vehicle floorplan payable-non-trade.
We repurchased 33.2 million shares of our common stock for an aggregate purchase price of $645.7 million during 2007 (average purchase
price of $19.43), including repurchases for which settlement occurred subsequent to December 31, 2007.
During 2007, proceeds from the exercise of stock options were $96.6 million (average price per share of $14.12), as compared to
$75.7 million in 2006 (average price per share of $13.24), and $112.8 million in 2005 (average price per share of $11.55).
During 2007, we refinanced our mortgage facility and received net proceeds of $126.4 million and paid $1.0 million of expenses.
We repaid $4.0 million during 2007, $37.7 million in 2006, and $164.4 million in 2005 of amounts outstanding under our mortgage
facilities, including prepayments of $154.0 million in 2005.
Cash flows from financing activities include changes in vehicle floorplan payable-non-trade (vehicle floorplan payables with lenders other
than the automotive manufacturers’ captive finance subsidiaries for that franchise) totaling $219.8 million in 2007, $87.3 million in 2006, and
$23.6 million in 2005. A portion of the change in vehicle floorplan payable-non-trade in 2007 and 2006 relates to the reclassification of GMAC-
financed vehicles from vehicle floorplan payable-trade to vehicle floorplan payable-non-trade, as a result of GM’s sale of a majority stake in
GMAC, effective November 30, 2006, as described above and in Note 3, Inventory and Vehicle Floorplan Payable, of the Notes to Consolidated
Financial Statements.
In April 2006, we sold $300.0 million of floating rate senior unsecured notes due April 15, 2013, and $300.0 million of 7% senior
unsecured notes due April 15, 2014, in each case at par. In connection with the issuance of the April 2006 senior unsecured notes, we amended
our existing credit agreement to provide: (1) a $675.0 million revolving credit facility for which we had net borrowings of $260.0 million during
2007 and (2) a $600.0 million term loan facility. In December 2006, the borrowing capacity of the revolving credit facility increased to
$700.0 million under the amended credit agreement.
The proceeds of the senior unsecured notes issued in April 2006 and term loan facility, together with cash on hand and borrowings of
$80.0 million under the amended revolving credit facility, were used to: (1) purchase 50 million shares of our common stock at $23 per share
for an aggregate purchase price of $1.15 billion pursuant to our equity tender offer, (2) purchase $309.4 million aggregate principal of our
9% senior unsecured notes for an aggregate total consideration of $339.8 million ($334.2 million of principal and tender premium and
$5.6 million of accrued interest) pursuant to our debt tender offer and consent solicitation, and (3) pay related financing costs. During 2006, we
expensed $34.5 million of tender premium ($24.8 million) and other deferred financing costs ($9.7 million) related to our debt tender offer. In
2005, we repurchased $123.1 million (face value) of our 9% senior unsecured notes at an average price of 110.5% (or $136.0 million) of face
value.
As discussed above, in April 2006, we purchased 50 million shares of our common stock at $23 per share for an aggregate purchase price
of $1.15 billion pursuant to our equity tender offer. We repurchased an additional 11.2 million shares of our common stock for a purchase
price of $228.9 million during 2006, for a total of 61.2 million shares repurchased for an aggregate purchase price of $1.38 billion in 2006.
During 2005, we repurchased 11.8 million shares of our common stock for an aggregate price of $237.1 million, under our Board-approved
share repurchases programs.
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