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EXHIBIT 99.2
AUTONATION, INC.
UNAUDITED CONSOLIDATED PRO FORMA BALANCE SHEET
On June 30, 2000 the Company completed the spin-off of its automotive
rental businesses organized under ANC Rental Corporation ("ANC Rental") by
distributing 100% of ANC Rental's common stock to the stockholders of AutoNation
as a tax-free dividend. The following Unaudited Consolidated Pro Forma Balance
Sheet as of March 31, 2000 gives effect to the following transactions and events
related to the spin-off of ANC Rental as if they occurred on March 31, 2000:
(1) the contribution of AutoNation's insurance subsidiary to ANC
Rental;
(2) the net cash funding by AutoNation to ANC Rental during the
period April 1, 2000 through June 30, 2000;
(3) the reclassification of certain fleet related receivables
owed by ANC Rental to AutoNation to be repaid following the
spin-off; and
(4) the distribution of the net assets of ANC Rental to
AutoNation's stockholders.
The Company's former automotive rental segment has been accounted for
as a discontinued operation. As such, the results of operations of this segment
have been classified as discontinued operations for all periods presented in the
Company's consolidated financial statements included in its Form 10-K for the
year ended December 31, 1999 and its Form 10-Q for the quarterly period ended
March 31, 2000. Accordingly, no pro forma statement of operations data is
required hereunder.
The Company believes that the assumptions used herein provide a
reasonable basis on which to present the unaudited pro forma financial data.
This Unaudited Consolidated Pro Forma Balance Sheet is for informational
purposes only and is not necessarily indicative of the Company's consolidated
financial position had the transactions and events described above been
completed on March 31, 2000.
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AUTONATION, INC.
UNAUDITED CONSOLIDATED PRO FORMA BALANCE SHEET
AS OF MARCH 31, 2000
(In millions)
<TABLE>
<CAPTION>
Pro Forma Adjustments
---------------------
Historical Dr. Cr. Pro Forma
---------- --------- --------- ---------
ASSETS
<S> <C> <C> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 413.4 $ 45.5(a) $ 367.9
Receivables, net 1,118.5 $ 73.1(c) 6.4(a) 1,185.2
Inventory 2,658.8 2,658.8
Other current assets 74.5 29.5(a) 45.0
--------- --------- --------- ---------
Total Current Assets 4,265.2 73.1 81.4 4,256.9
INVESTMENTS 157.8 54.2(a) 103.6
PROPERTY AND EQUIPMENT, NET 1,339.4 1,339.4
INTANGIBLE ASSETS, NET 2,897.5 2,897.5
OTHER ASSETS 210.9 210.9
NET ASSETS OF DISCONTINUED OPERATIONS 857.1 93.9(b) 73.1(c) --
877.9(d)
--------- --------- --------- ---------
LIABILITIES AND SHAREHOLDERS' EQUITY $ 9,727.9 $ 167.0 $ 1,086.6 $ 8,808.3
========= ========= ========= =========
CURRENT LIABILITIES:
Accounts payable $ 150.3 $ .1(a) $ 150.2
Accrued liabilities 526.7 526.7
Notes payable and current maturities of long-term debt 2,252.5 2,252.5
Other current liabilities 202.6 55.2(a) 147.4
--------- --------- ---------
Total Current Liabilities 3,132.1 55.3 3,076.8
LONG-TERM DEBT, NET OF CURRENT MATURITIES 1,031.6 $ 93.9(b) 1,125.5
DEFERRED INCOME TAXES 806.3 806.3
OTHER LIABILITIES 207.5 100.3(a) 107.2
SHAREHOLDERS' EQUITY:
Common stock 4.8 4.8
Additional paid-in capital 4,662.1 4,662.1
Retained earnings 1,276.1 877.9(d) 20.0(a) 418.2
Accumulated other comprehensive income 2.7 2.7
Treasury stock (1,395.3) (1,395.3)
--------- --------- --------- ---------
Total Shareholders' Equity 4,550.4 877.9 20.0 3,692.5
--------- --------- --------- ---------
$ 9,727.9 $ 1,033.5 $ 113.9 $ 8,808.3
========= ========= ========= =========
</TABLE>
The accompanying notes are an integral part of this balance sheet.
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AUTONATION, INC.
NOTES TO UNAUDITED CONSOLIDATED PRO FORMA BALANCE SHEET
The following is a summary of the pro forma adjustments reflected in
the Unaudited Consolidated Pro Forma Balance Sheet:
(a) Record the contribution of AutoNation's insurance subsidiary
to ANC Rental, which occurred in June 2000, assuming the
contribution occurred as of March 31, 2000.
(b) Record the net cash funding by AutoNation to ANC Rental during
the period April 1, 2000 through June 30, 2000, as if such
funding occurred as of March 31, 2000.
(c) Record certain fleet related receivables owed by ANC Rental
to AutoNation to be repaid by ANC Rental following the
spin-off.
(d) Record the distribution of the net assets of ANC Rental to
AutoNation's stockholders as if the distribution occurred
on March 31, 2000.
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