(Mark One)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
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For the quarterly period ended March 31, 2008 |
o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
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For the transition period from _________ to _________ |
Delaware
(State or Other Jurisdiction of Incorporation or Organization) |
73-1105145
(I.R.S. Employer Identification No.) |
110 S.E. 6th Street, Fort Lauderdale, Florida
(Address of Principal Executive Offices) |
33301
(Zip Code) |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o | |||
(Do not check if a smaller reporting company) |
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2
3
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5
6
7
8
9
10
11
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13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except share and per share data)
March 31, 2008
December 31, 2007
$
34.4
$
33.0
641.0
707.6
2,377.1
2,285.6
217.2
246.5
3,269.7
3,272.7
of $619.4 million and $597.9 million, respectively
1,963.6
1,971.3
2,759.5
2,738.3
329.9
319.9
200.5
177.4
$
8,523.2
$
8,479.6
$
1,787.8
$
1,691.0
412.5
452.7
229.5
210.3
30.1
23.9
530.9
523.9
2,990.8
2,901.8
1,668.5
1,751.9
225.0
220.7
137.9
131.7
193,562,149 shares issued at March 31, 2008, and
December 31, 2007,
including shares held in treasury
1.9
1.9
464.5
461.0
3,316.8
3,266.1
(0.1
)
(0.2
)
(282.1
)
(255.3
)
3,501.0
3,473.5
$
8,523.2
$
8,479.6
Table of Contents
UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENTS
(In millions, except per share data)
Three Months Ended
March 31,
2008
2007
$
2,198.8
$
2,423.5
983.4
1,068.3
654.6
644.7
145.0
146.3
17.6
17.1
3,999.4
4,299.9
2,052.8
2,246.6
899.3
965.5
370.6
363.3
7.5
6.7
3,330.2
3,582.1
146.0
176.9
84.1
102.8
284.0
281.4
145.0
146.3
10.1
10.4
669.2
717.8
498.3
511.2
23.5
20.9
0.3
147.1
185.7
(25.3
)
(31.7
)
(26.8
)
(26.4
)
0.5
0.9
(1.8
)
0.1
93.7
128.6
38.0
46.1
55.7
82.5
(5.0
)
(4.9
)
$
50.7
$
77.6
$
0.31
$
0.40
$
(0.03
)
$
(0.02
)
$
0.28
$
0.37
180.0
208.1
$
0.31
$
0.39
$
(0.03
)
$
(0.02
)
$
0.28
$
0.37
180.6
210.7
178.5
209.7
Table of Contents
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY
(In millions, except share data)
Additional
Accumulated Other
Common Stock
Paid-in
Retained
Comprehensive
Treasury
Shares
Amount
Capital
Earnings
Loss
Stock
Total
193,562,149
$
1.9
$
461.0
$
3,266.1
$
(0.2
)
$
(255.3
)
$
3,473.5
(0.3
)
1.0
0.7
3.8
3.8
0.1
0.1
(27.8
)
(27.8
)
50.7
50.7
193,562,149
$
1.9
$
464.5
$
3,316.8
$
(0.1
)
$
(282.1
)
$
3,501.0
Table of Contents
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
Three Months Ended
March 31,
2008
2007
$
50.7
$
77.6
5.0
4.9
23.5
20.9
0.7
0.9
3.8
3.0
4.3
4.6
66.7
141.9
(86.8
)
75.8
(2.1
)
(6.6
)
96.8
(265.8
)
19.2
32.8
10.6
12.3
192.4
102.3
(0.5
)
0.9
191.9
103.2
(21.7
)
(42.3
)
(1.8
)
0.1
(29.4
)
(0.7
)
3.6
(5.3
)
2.8
3.2
9.5
10.1
(0.1
)
(0.2
)
(41.3
)
(30.9
)
(0.9
)
(41.3
)
(31.8
)
Table of Contents
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
Three Months Ended
March 31,
2008
2007
(28.7
)
(50.3
)
351.0
80.0
(426.0
)
(275.0
)
(43.6
)
78.5
(1.6
)
(1.1
)
(1.4
)
(1.4
)
1.0
76.1
0.1
13.4
(0.1
)
(149.2
)
(79.9
)
(0.3
)
(149.2
)
(80.2
)
1.4
(8.8
)
33.0
52.9
$
34.4
$
44.1
Table of Contents
(In millions, except share and per share data)
Table of Contents
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
March 31,
December 31,
2008
2007
$
121.1
$
118.7
121.2
138.2
47.5
55.0
289.8
311.9
(6.6
)
(6.4
)
283.2
305.5
340.1
380.2
17.7
21.9
$
641.0
$
707.6
Table of Contents
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
March 31,
December 31,
2008
2007
$
1,908.7
$
1,826.3
319.7
310.5
148.7
148.8
$
2,377.1
$
2,285.6
March 31,
December 31,
2008
2007
$
3,025.3
$
3,004.1
(265.8
)
(265.8
)
$
2,759.5
$
2,738.3
$
323.7
$
316.4
10.9
7.9
334.6
324.3
(4.7
)
(4.4
)
$
329.9
$
319.9
Table of Contents
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
March 31,
December 31,
2008
2007
$
300.0
$
300.0
300.0
300.0
600.0
600.0
185.0
260.0
14.1
14.1
238.1
239.7
61.4
62.0
1,698.6
1,775.8
(30.1
)
(23.9
)
$
1,668.5
$
1,751.9
Table of Contents
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
Table of Contents
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
Three Months Ended
March 31,
2008
2007
180.0
208.1
0.6
2.6
180.6
210.7
Table of Contents
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
Three Months Ended
March 31,
2008
2007
$
3.8
$
3.0
$
2.3
$
1.9
Weighted-
Average
Remaining
Aggregate
Shares
Weighted-Average
Contractual
Intrinsic Value
(in millions)
Exercise Price
Term (Years)
(in millions)
14.2
$
16.68
0.1
$
15.66
(0.1
)
$
10.68
(0.2
)
$
19.68
(0.3
)
$
19.37
13.7
$
16.59
5.9
$
16.4
9.0
$
14.90
4.6
$
16.4
1.7
*
*
Options available for future grants at March 31 do not include options or other awards that may be granted under the 2008 Plan discussed above.
Three Months Ended
March 31,
2008
2007
$
50.7
$
77.6
0.1
0.2
$
50.8
$
77.8
Table of Contents
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
Table of Contents
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
Three Months Ended
March 31,
2008
2007
$
41.1
$
150.4
$
(1.7
)
$
(1.0
)
1.0
(1.5
)
(0.7
)
(2.5
)
4.3
2.4
$
(5.0
)
$
(4.9
)
March 31,
December 31,
2008
2007
$
37.3
$
48.0
7.3
10.2
24.3
29.1
24.3
28.5
0.1
0.1
$
93.3
$
115.9
$
23.8
$
33.3
11.2
11.2
6.4
6.3
$
41.4
$
50.8
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Three Months Ended March 31,
Variance
Favorable/
%
($ in millions, except per vehicle data)
2008
2007
(Unfavorable)
Variance
$
2,198.8
$
2,423.5
$
(224.7
)
(9.3
)
983.4
1,068.3
(84.9
)
(7.9
)
654.6
644.7
9.9
1.5
145.0
146.3
(1.3
)
(0.9
)
17.6
17.1
0.5
$
3,999.4
$
4,299.9
$
(300.5
)
(7.0
)
$
146.0
$
176.9
$
(30.9
)
(17.5
)
84.1
102.8
(18.7
)
(18.2
)
284.0
281.4
2.6
0.9
145.0
146.3
(1.3
)
(0.9
)
10.1
10.4
(0.3
)
669.2
717.8
(48.6
)
(6.8
)
498.3
511.2
12.9
2.5
23.5
20.9
(2.6
)
0.3
(0.3
)
147.1
185.7
(38.6
)
(20.8
)
(25.3
)
(31.7
)
6.4
(26.8
)
(26.4
)
(0.4
)
0.5
0.9
(0.4
)
(1.8
)
0.1
(1.9
)
$
93.7
$
128.6
$
(34.9
)
(27.1
)
71,673
78,114
(6,441
)
(8.2
)
50,863
52,889
(2,026
)
(3.8
)
122,536
131,003
(8,467
)
(6.5
)
$
30,678
$
31,025
$
(347
)
(1.1
)
$
16,057
$
16,302
$
(245
)
(1.5
)
$
2,037
$
2,265
$
(228
)
(10.1
)
$
1,661
$
1,891
$
(230
)
(12.2
)
$
1,183
$
1,117
$
66
5.9
Table of Contents
Three Months Ended March 31,
2008 (%)
2007 (%)
55.0
56.4
24.6
24.8
16.4
15.0
3.6
3.4
0.4
0.4
100.0
100.0
21.8
24.6
12.6
14.3
42.4
39.2
21.7
20.4
1.5
1.5
100.0
100.0
6.6
7.3
10.3
11.6
43.4
43.6
16.7
16.7
12.5
11.9
3.7
4.3
74.5
71.2
22.0
25.9
March 31,
March 31,
2008
2007
57 days
52 days
40 days
38 days
Three Months Ended
March 31,
2008
2007
Variance
($ in millions)
$
21.0
$
24.1
$
(3.1
)
(25.3
)
(31.7
)
6.4
$
(4.3
)
$
(7.6
)
$
3.3
Table of Contents
Three Months Ended March 31,
Variance
Favorable/
%
($ in millions, except per vehicle data)
2008
2007
(Unfavorable)
Variance
$
2,188.2
$
2,423.5
$
(235.3
)
(9.7
)
976.8
1,067.7
(90.9
)
(8.5
)
649.9
644.7
5.2
0.8
144.4
146.3
(1.9
)
(1.3
)
6.5
7.0
(0.5
)
$
3,965.8
$
4,289.2
$
(323.4
)
(7.5
)
$
145.1
$
176.8
$
(31.7
)
(17.9
)
83.1
102.3
(19.2
)
(18.8
)
281.4
280.8
0.6
0.2
144.4
146.3
(1.9
)
(1.3
)
6.4
6.7
(0.3
)
660.4
712.9
(52.5
)
(7.4
)
71,395
78,114
(6,719
)
(8.6
)
50,616
52,889
(2,273
)
(4.3
)
122,011
131,003
(8,992
)
(6.9
)
$
30,649
$
31,025
$
(376
)
(1.2
)
$
16,036
$
16,302
$
(266
)
(1.6
)
$
2,032
$
2,263
$
(231
)
(10.2
)
$
1,658
$
1,891
$
(233
)
(12.3
)
$
1,183
$
1,117
$
66
5.9
Table of Contents
Three Months Ended March 31,
2008 (%)
2007 (%)
55.2
56.5
24.6
24.9
16.4
15.0
3.6
3.4
0.2
0.2
100.0
100.0
22.0
24.8
12.6
14.3
42.6
39.4
21.9
20.5
0.9
1.0
100.0
100.0
6.6
7.3
10.3
11.6
43.3
43.6
16.7
16.6
Table of Contents
Three Months Ended March 31,
Variance
Favorable/
%
($ in millions, except per vehicle data)
2008
2007
(Unfavorable)
Variance
$
2,198.8
$
2,423.5
$
(224.7
)
(9.3
)
$
146.0
$
176.9
$
(30.9
)
(17.5
)
71,673
78,114
(6,441
)
(8.2
)
$
30,678
$
31,025
$
(347
)
(1.1
)
$
2,037
$
2,265
$
(228
)
(10.1
)
6.6
%
7.3
%
57 days
52 days
Three Months Ended March 31,
Variance
Favorable/
%
2008
2007
(Unfavorable)
Variance
$
2,188.2
$
2,423.5
$
(235.3
)
(9.7
)
$
145.1
$
176.8
$
(31.7
)
(17.9
)
71,395
78,114
(6,719
)
(8.6
)
$
30,649
$
31,025
$
(376
)
(1.2
)
$
2,032
$
2,263
$
(231
)
(10.2
)
6.6
%
7.3
%
Three Months Ended
March 31,
2008
2007
Variance
($ in millions)
$
21.0
$
24.1
$
(3.1
)
(25.3
)
(31.7
)
6.4
$
(4.3
)
$
(7.6
)
$
3.3
Table of Contents
Three Months Ended March 31,
Variance
Favorable/
%
($ in millions, except per vehicle data)
2008
2007
(Unfavorable)
Variance
$
816.7
$
862.2
$
(45.5
)
(5.3
)
166.7
206.1
(39.4
)
(19.1
)
$
983.4
$
1,068.3
$
(84.9
)
(7.9
)
$
84.5
$
100.0
$
(15.5
)
(15.5
)
(0.4
)
2.8
(3.2
)
$
84.1
$
102.8
$
(18.7
)
(18.2
)
50,863
52,889
(2,026
)
(3.8
)
$
16,057
$
16,302
$
(245
)
(1.5
)
$
1,661
$
1,891
$
(230
)
(12.2
)
10.3
%
11.6
%
40 days
38 days
Three Months Ended March 31,
Variance
Favorable/
%
2008
2007
(Unfavorable)
Variance
$
811.7
$
862.2
$
(50.5
)
(5.9
)
165.1
205.5
(40.4
)
(19.7
)
$
976.8
$
1,067.7
$
(90.9
)
(8.5
)
$
83.9
$
100.0
$
(16.1
)
(16.1
)
(0.8
)
2.3
(3.1
)
$
83.1
$
102.3
$
(19.2
)
(18.8
)
50,616
52,889
(2,273
)
(4.3
)
$
16,036
$
16,302
$
(266
)
(1.6
)
$
1,658
$
1,891
$
(233
)
(12.3
)
10.3
%
11.6
%
Table of Contents
Three Months Ended March 31,
Variance
Favorable/
%
($ in millions, except per vehicle data)
2008
2007
(Unfavorable)
Variance
$
654.6
$
644.7
$
9.9
1.5
$
284.0
$
281.4
$
2.6
0.9
43.4
%
43.6
%
$
649.9
$
644.7
$
5.2
0.8
$
281.4
$
280.8
$
0.6
0.2
43.3
%
43.6
%
Table of Contents
Three Months Ended March 31,
Variance
Favorable/
%
($ in millions, except per vehicle data)
2008
2007
(Unfavorable)
Variance
$
145.0
$
146.3
$
(1.3
)
(0.9
)
$
1,183
$
1,117
$
66
5.9
$
144.4
$
146.3
$
(1.9
)
(1.3
)
$
1,183
$
1,117
$
66
5.9
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
The automotive retailing industry is sensitive to changing economic conditions and various
other factors. Our business and results of operations are substantially dependent on new
vehicle sales levels in the United States and in our particular geographic markets and the
level of gross profit margins that we can achieve on our sales of new vehicles, all of which
are very difficult to predict.
We are dependent upon the success and continued financial viability of the vehicle
manufacturers and distributors with which we hold franchises.
Our new vehicle sales are impacted by the consumer incentive and marketing programs of
vehicle manufacturers.
Natural disasters and adverse weather events can disrupt our business.
We are subject to restrictions imposed by, and significant influence from, vehicle
manufacturers that may adversely impact our business, financial condition, results of
operations, cash flows, and prospects, including our ability to acquire additional stores.
We are subject to numerous legal and administrative proceedings, which, if the outcomes are
adverse to us, could materially adversely affect our business, results of operations,
financial condition, cash flows, and prospects.
Our operations, including, without limitation, our sales of finance and insurance and
vehicle protection products, are subject to extensive governmental laws and regulations. If
we are found to be in violation of, or subject to liabilities under, any of these laws or
regulations, or if new laws or regulations are enacted that adversely affect our operations,
our business, operating results, and prospects could suffer.
Table of Contents
Goodwill and other intangible assets comprise a significant portion of our total assets. We
must test our intangible assets for impairment at least annually, which may result in a
material, non-cash write-down of goodwill or franchise rights and could have a material
adverse impact on our results of operations and shareholders equity.
Our ability to grow our business may be limited by our ability to acquire automotive stores
on favorable terms or at all.
We are subject to interest rate risk in connection with our floorplan notes payable,
revolving credit facility, term loan facility, and floating rate senior unsecured notes that
could have a material adverse effect on our profitability.
Our revolving credit facility, term loan facility, mortgage facility, and the indenture
relating to our senior unsecured notes contain certain restrictions on our ability to conduct
our business.
Our substantial indebtedness could adversely affect our financial condition and operations
and prevent us from fulfilling our debt service obligations. We may still be able to incur
more debt, intensifying these risks.
Our largest stockholder, as a result of its voting ownership, may have the ability to exert
substantial influence over actions to be taken or approved by our stockholders.
Table of Contents
Table of Contents
33
34
Total Number of
Shares Purchased as
Maximum Dollar Value of Shares
Total Number of
Avg. Price
Part of Publicly
That May Yet Be Purchased Under
Period
Shares Purchased
Paid Per Share
Announced Programs
The Programs (in millions)(1)(2)
January 31, 2008
$
$
196.7
February 29, 2008
425,000
$
15.35
425,000
$
190.2
March 31, 2008
1,450,000
$
14.68
1,450,000
$
168.9
1,875,000
1,875,000
(1)
On October 23, 2007, our Board of Directors approved a stock
repurchase program (referred to as the October 2007 Program), which
authorized AutoNation to repurchase up to $250 million in shares of
our common stock. All of the shares repurchased in February and March
2008 were repurchased under the October 2007 Program. The October 2007
Program does not have an expiration date.
(2)
Future share repurchases are subject to limitations contained in the
indenture relating to our senior unsecured notes. As of April 1, 2008,
approximately $32 million remained available for share repurchases and
other restricted payments under the indenture relating to our senior
unsecured notes. This amount will increase in future periods by 50% of
our cumulative consolidated net income (as defined in the indenture),
the net proceeds of stock option exercises, and certain other items,
and decrease by the amount of future share repurchases and other
restricted payments subject to these limitations.
Table of Contents
Amended and Restated By-Laws of AutoNation, Inc. (incorporated by reference to
Exhibit 3.1 to the Registrants Current Report on Form 8-K as filed on February 8, 2008)
Third Amendment, dated as of March 26, 2008, to AutoNation, Inc.s Five-Year
Credit Agreement, dated as of July 14, 2005, as amended
Supplemental Indenture, dated as of
March 11, 2008, amending each of (i) the Indenture, dated
as of August 10, 2001, relating to the senior unsecured notes
due 2008 and (ii) the Indenture, dated as of April 12,
2006, relating to the floating rate senior unsecured notes due 2013
and the senior unsecured notes due 2014, to update the list of the
Companys subsidiaries as guarantors thereunder
AutoNation, Inc. 2008 Employee
Equity and Incentive Plan (adopted by AutoNations Board of
Directors on March 14, 2008)*
Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) of the Exchange Act
Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) of the Exchange Act
Certification of Chief Executive Officer Pursuant to Rule 13a-14(b) of the
Exchange Act and 18 U.S.C. Section 1350
Certification of Chief Financial Officer Pursuant to Rule 13a-14(b) of the
Exchange Act and 18 U.S.C. Section 1350
*
Management contract or compensatory plan or arrangement.
Table of Contents
35
AUTONATION, INC.
Date: April 24, 2008
By:
/s/ Michael J. Stephan
Michael J. Stephan
Vice President Corporate Controller
(Duly Authorized Officer and
Principal Accounting Officer)
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AUTONATION, INC.
|
||||
By: | /s/ James J. Teufel | |||
Name: | James J. Teufel | |||
Title: | Vice President and Treasurer | |||
JPMORGAN CHASE BANK, N.A., as Administrative Agent
and as Lender
|
||||
By: | /s/ Robert P. Kellas | |||
Name: | Robert P. Kellas | |||
Title: | Executive Director | |||
4
Name of Institution: Bank of America, N.A.
|
||||
By: | /s/ M. Patricia Kay | |||
Name: | M. Patricia Kay | |||
Title: | Senior Vice President | |||
5
Name of Institution: Cathay United Bank
|
||||
By: | /s/ Clement Au | |||
Name: | Clement Au | |||
Title: | VP | |||
6
Name of Institution: Comerica Bank
|
||||
By: | /s/ Joseph M. Davignon | |||
Name: | Joseph M. Davignon | |||
Title: | Senior Vice President | |||
7
Name of Institution: Fifth Third Bank, A Michigan Banking Corporation
|
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By: | /s/ John A. Marian | |||
Name: | John A. Marian | |||
Title: | Vice President | |||
8
Name of Institution: Mizuho Corporate Bank, Ltd.
|
||||
By: | /s/ Bertram H. Tang | |||
Name: | Bertram H. Tang | |||
Title: | Authorized Signatory | |||
9
Name of Institution: SunTrust Bank
|
||||
By: | /s/ William C. Barr, III | |||
Name: | William C. Barr, III | |||
Title: | Managing Director | |||
10
Name of Institution: Toyota Motor Credit Corporation
|
||||
By: | /s/ Mark Doi | |||
Name: | Mark Doi | |||
Title: | National Dealer Credit Manager | |||
11
Name of Institution: Union Bank of California, N.A.
|
||||
By: | /s/ Christine Davis | |||
Name: | Christine Davis | |||
Title: | Vice President | |||
12
Name of Institution: Wachovia Bank, NA
|
||||
By: | /s/ Michael R. Burkitt | |||
Name: | Michael R. Burkitt | |||
Title: | Senior Vice President | |||
13
Name of Institution: Wells Fargo Bank, National Association
|
||||
By: | /s/ William P. Schmechel | |||
Name: | William P. Schmechel | |||
Title: | Vice President | |||
14
EACH OF THE SUBSIDIARIES LISTED ON
ANNEX A HERETO |
||||
By: | /s/ James J. Teufel | |||
Name: | James J. Teufel | |||
Title: | Treasurer | |||
EACH OF THE SUBSIDIARIES LISTED ON
ANNEX B HERETO |
||||
By: | /s/ James J. Teufel | |||
Name: | James J. Teufel | |||
Title: | Assistant Treasurer | |||
15
(a) | To jointly and severally Guarantee to each Holder of a Note authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, irrespective of the validity and enforceability of each indenture, the Notes or the obligations of the Company hereunder or thereunder, that: |
(i) | the principal of and interest on the Notes will be promptly paid by the Company in full when due, whether at maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of and interest on the Notes, if any, if lawful, and all other obligations of the Company to the Holders or the Trustee hereunder or thereunder will be promptly paid by the Company in full or performed by the Company, all in accordance with the terms hereof and thereof; and | ||
(ii) | in case of any extension of time of payment or renewal of any Notes or any of such other obligations, that same will be promptly paid by the Company in full when due or performed by the Company in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise. |
Failing payment when due by the Company of any amount so guaranteed or any performance so guaranteed which failure continues for three days after demand therefor is made to the Company for whatever reason, the Guarantors shall be jointly and severally obligated to pay the same immediately. |
(b) | The obligations hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of the Notes or each indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a Guarantor. | ||
(c) | The following is hereby waived: diligence, presentment, demand of payment (except as specifically provided in (a) above), filing of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a proceeding first against the Company, protest, notice and all demands (except as specifically provided in (a) above) whatsoever. | ||
(d) | This Guarantee shall not be discharged except (i) by complete performance of the obligations contained in the Notes and each indenture or (ii) as provided in Section 5 hereof. | ||
(e) | If any Holder or the Trustee is required by any court or otherwise to return to the Company, the Guarantors, or any Custodian, Trustee, liquidator or other similar official acting in relation to either the Company or the Guarantors, any amount paid by either to the Trustee or such Holder, this Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect. | ||
(f) | The Guaranteeing Subsidiary shall not be entitled to any right of subrogation in relation to the Holders in respect of any obligations guaranteed hereby until payment in full of all obligations guaranteed hereby. | ||
(g) | As between the Guarantors, on the one hand, and the Holders and the Trustee, on the other hand, (x) the maturity of the obligations guaranteed hereby may be accelerated as provided in Article 6 of each indenture for the purposes of this Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (y) in the event of any declaration of acceleration of such obligations as provided in Article 6 of each indenture, such obligations (whether or not due and payable) shall forthwith become due and payable by the Guarantors for the purpose of this Guarantee, failing payment when due by the Company which failure continues for three days after demand therefor is made to the Company. | ||
(h) | The Guarantors shall have the right to seek contribution from any non-paying Guarantor so long as the exercise of such right does not impair the rights of the Holders under the Guarantee. |
2
AUTONATION, INC.
|
||||
By: | /s/ C. Coleman G. Edmunds | |||
Name: | C. Coleman G. Edmunds | |||
Title: | Vice President, Deputy General Counsel | |||
AN Motors of Dallas, Inc.
AN Western Region Management, LLC AN Central Region Management, LLC |
||||
By: | /s/ C. Coleman G. Edmunds | |||
Name: | C. Coleman G. Edmunds | |||
Title: | Assistant Secretary | |||
3
Wells Fargo Bank, National Association,
As Trustee |
||||
By: | /s/ Joseph P. ODonnell | |||
Name: | Joseph P. ODonnell | |||
Title: | Vice President | |||
4
1. | PURPOSE |
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1. | I have reviewed this quarterly report on Form 10-Q of AutoNation, Inc.; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and | ||
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: April 24, 2008 | /s/ Michael J. Jackson | |||
Michael J. Jackson | ||||
Chairman and Chief Executive Officer | ||||
1. | I have reviewed this quarterly report on Form 10-Q of AutoNation, Inc.; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and | ||
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: April 24, 2008 | /s/ Michael J. Short | |||
Michael J. Short | ||||
Executive Vice President and Chief Financial Officer | ||||
(1) | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and | ||
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. |
Dated: April 24, 2008 | /s/ Michael J. Jackson | |||
Michael J. Jackson | ||||
Chairman and Chief Executive Officer | ||||
(1) | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and | ||
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. |
Dated: April 24, 2008 | /s/ Michael J. Short | |||
Michael J. Short | ||||
Executive Vice President and Chief Financial Officer | ||||