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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of
the Securities Exchange act of 1934
Date of Report (Date of earliest event reported) December 13, 1999
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AUTONATION, INC.
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(Exact name of registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation)
1-13107 73-1105145
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(Commission (IRS Employer
File Number) Identification No.)
110 SE 6th Street 33301
Ft. Lauderdale, FL -----
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(Address of principal executive offices)
Registrant's telephone number, including area code (954) 769-6000
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N.A.
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS.
On December 13, 1999, AutoNation, Inc. (the "Company") issued a press
release announcing the Company's decision to exit the used vehicle megastore
category by immediately closing 23 of its used vehicle megastores and
integrating six others with new vehicle franchises. The Company also announced
that the costs associated with the store closures along with previously
announced workforce reductions and other corporate restructuring would result in
a $430 to $490 million pre-tax charge to earnings to be recorded in the fourth
quarter. The Company also commented on its expected fourth quarter results of
operations. The Company also announced that the Board of Directors authorized
the repurchase of an additional $500 million of the Company's common stock
pursuant to the Company's share repurchase program. A copy of the press release
is attached to this Form 8-K as Exhibit 99.1 and is incorporated herein by
reference.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(a) Not applicable
(b) Not applicable
(c) Exhibits.
EXHIBIT NO. DESCRIPTION
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99.1 Press Release of the Company dated
December 13, 1999
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
AUTONATION, INC.
Date: December 13, 1999 /s/ MICHAEL J. JACKSON
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Michael J. Jackson,
Chief Executive Officer
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INDEX OF EXHIBITS
EXHIBIT NUMBER EXHIBIT DESCRIPTION
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99.1 Press Release of the Company dated December 13, 1999
2
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EXHIBIT 99.1
AUTONATION TO CLOSE USED VEHICLE MEGASTORES; COMPANY TO TAKE $430-$490
MILLION PRE-TAX CHARGE IN FOURTH QUARTER
Board Approves Additional $500 Million Share Repurchase
FORT LAUDERDALE, Fla., Dec. 13 /PRNewswire/ -- AutoNation, Inc. (NYSE: AN -
news) today announced that it will exit the used vehicle megastore category by
immediately closing 23 of its megastores and integrating six others with new
vehicle franchises. Eight megastores have already been integrated with new
vehicle franchises.
AutoNation said the megastore closures will result in the elimination of
approximately 1,800 positions. The Company said the costs associated with the
megastore closures, a previously announced workforce reduction at its corporate
headquarters, and other corporate restructuring, will result in a pre-tax charge
to earnings of between $430 and $490 million, which the Company will record in
the fourth quarter.
AutoNation also announced that it expects 1999 fourth quarter earnings from
continuing operations, before the pre-tax charge, to be approximately $0.10 per
share, versus analysts' consensus estimate of $0.19 for the quarter. The
shortfall in the quarter is attributed to poor performance at the Company's used
vehicle megastores, and higher selling, general, and administrative expenses.
AutoNation Chief Executive Officer Michael J. Jackson, said, "Our focus now is
on improving our operating margins and on creating a unique and branded customer
experience in our new vehicle franchises, which are now AutoNation's sole
business focus. By closing the megastores and implementing SG&A reductions, we
have taken the necessary steps to ensure the long-term success of AutoNation."
Mr. Jackson emphasized that AutoNation's 409 automotive retail franchises, which
sell new and used vehicles under a wide range of regional brand names, are not
impacted by the decision to close the 23 megastores. He added that AutoNation
will continue to honor its warranty and service obligations for AutoNation
megastore customers by welcoming them into the company's automotive retail
franchises. He said the company is sending specific information in this regard
to each of its megastore customers.
The Company also announced that its Board of Directors today authorized the
repurchase of an additional $500 million of common stock under the Company's
share repurchase program. The Company has repurchased approximately $1.2 billion
of its common stock since August, 1998.
The Company also said it expects to set a record date in January, 2000 as it
relates to the tax-free dividend of shares of ANC Rental Corporation. The
Company said it expects the distribution will be completed by the end of
February, 2000, and that the distribution will be at a ratio of one share of ANC
Rental Corporation for every six to eight shares of AutoNation.
AutoNation, Inc. is America's largest automotive retailer, with 409 automotive
retail franchises in 19 states. AutoNation also operates more than 270 websites,
including AutoNationDirect.com offering the Internet's largest selection of new
and used vehicles for sale. The Company also owns and operates the National,
Alamo and CarTemps USA automotive rental brands, which it plans to spin off in a
tax-free dividend of ANC Rental Corporation shares.
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Certain statements and information included in this release constitute
"forward-looking statements" within the meaning of the Federal Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which may cause
the actual results, performance, or achievements of the Company to be materially
different from any future results, performances, or achievements expressed or
implied in such forward-looking statements. Additional discussion factors that
could cause actual results to differ materially from management's projections,
forecasts, estimates and expectations are contained in the Company's SEC
filings.
AUTONATION USA MEGASTORES TO BE CLOSED, INTEGRATED
Megastores to be closed (23):
1. Irvine, Calif. (Los Angeles), 21 Auto Center Drive
2. Rancho Cucamonga, Calif., 9629 Buffalo Ave.
3. Downer's Grove, Ill. (Chicago), 3300 Finley Road
4. Coconut Creek, Fla., 4401 West Sample Road
5. Long Beach, Calif., 7200 E Carson Street
6. Fishers, Ind. (Indianapolis), 9820 Kincaid Drive
7. Stafford, Texas, 12053 SW Freeway
8. Forest Park (Cincinnati), 12105 Omniplex Court
9. South Bay (Los Angeles), 19503 Normandie Ave, Torrance
10. Oxnard, Calif., 2001 Lockwood Street
11. San Antonio, Texas, 5611 UTSA Blvd.
12. Canton, Mich., 39600 Ford Road
13. Mesquite, Texas (Dallas), 1919 Oates Drive
14. Dallas, 11990 N. Central Expressway
15. Morrow, Ga. (South Atlanta), 6850 Mount Zion Blvd.
16. Beaver Creek, Ohio (Dayton), 3725 Colonel Glenn Hwy
17. West Palm Beach, Fla., 6500 Okeechobee Rd.
18. Sterling Heights, Mich., 36250 Van Dyke
19. Almeda, Texas (South Houston), 12800 Gulf Freeway
20. Henderson, Nev. (Las Vegas), 1000 W. Warm Springs, Road
21. Houston (Truck Center), 10777 N. Freeway
22. Lewisville, Texas, 601 Waters Ridge
23. Chandler, Ariz. (Phoenix), 7450 W. Orchid Lane
Megastores Already Integrated (8):
1. Perrine, Fla. (AutoNation Nissan), 17305 S. Dixie Hwy.
2. Douglasville, Ga. (AutoNation Chrysler Plymouth), 1000 Blairs Bridge
Rd., Lithia Springs
3. Sanford, Fla. (Seminole Ford), 4911 Wayside Drive
4. Grand Prairie, Texas (AutoNation Dodge), 2615 Interstate 20
5. Irving, Texas (AutoNation Dodge), 1251 E. Airport Freeway
6. Clearwater, Fla. (AutoNation Nissan), 13600 Icot Boulevard
7. Stone Mountain, Ga. (AutoNation Dodge), 4550 Greer Circle
8. North Phoenix (AutoNation Dodge), 16406 N 26 Ave.
Megastores To Be Integrated (6):
1. Dublin, Calif., 4600 Dublin Blvd.
2. Alpharetta, Ga., 1575 Mansell Road, Suite 200
3. Pembroke Pines, Fla., 13601 Pines Boulevard
4. North Houston, 17510 N. Freeway
5. Jacksonville, Fla., 7155 Bonneval Road
6. Tampa, Fla., 3738 Autoway Drive
