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Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.80 410.00 Td (\(Exact name of Registrant as specified in its charter\)) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 244.25 399.5 m 274.25 399.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.25 399.5 m 334.25 399.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.25 399.5 m 364.25 399.5 l s BT /F2 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.80 376.23 Td (Delawar) Tj ET Q q 0 0 0 rg BT 189.81 376.23 Td (e) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 304.00 376.76 Td (? Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.80 376.23 Td (01-0609375) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 117.90 363.90 Td (\(State or) Tj ET Q q 0 0 0 rg BT 150.97 363.90 Td ( other) Tj ET Q q 0 0 0 rg BT 173.55 363.90 Td ( jurisdiction of) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 115.30 354.90 Td (incorporation or) Tj ET Q q 0 0 0 rg BT 178.88 354.90 Td ( organization\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 304.00 354.96 Td (? Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.55 363.90 Td (\(I.R.S. Employer) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 396.75 354.90 Td (Identification No.\)) Tj ET Q BT /F2 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.35 331.23 Td (2905 Pr) Tj ET Q q 0 0 0 rg BT 123.22 331.23 Td (emier) Tj ET Q q 0 0 0 rg BT 147.46 331.23 Td (e Parkway) Tj ET Q q 0 0 0 rg BT 192.18 331.23 Td (, NW) Tj ET Q q 0 0 0 rg BT 213.48 331.23 Td (, Suite 300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.25 321.23 Td (Duluth, Georgia) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 304.00 321.96 Td (? Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 322.18 Td (30097) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 83.80 308.90 Td (\(Curr) Tj ET Q q 0 0 0 rg BT 106.21 308.90 Td (ent addr) Tj ET Q q 0 0 0 rg BT 138.80 308.90 Td (ess of principal executive offices\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 304.00 308.76 Td (? Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.10 308.90 Td (\(Zip Code\)) Tj ET Q BT /F2 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.50 287.00 Td (\(770\) 418-8200) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 203.20 276.20 Td (\(Registrant's telephone number) Tj ET Q q 0 0 0 rg BT 323.87 276.20 Td (, including ar) Tj ET Q q 0 0 0 rg BT 374.96 276.20 Td (ea code\)) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 244.25 261.70000000000005 m 274.25 261.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.25 261.70000000000005 m 334.25 261.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.25 261.70000000000005 m 364.25 261.70000000000005 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.70 250.20 Td (Securities r) Tj ET Q q 0 0 0 rg BT 231.11 250.20 Td (egister) Tj ET Q q 0 0 0 rg BT 259.25 250.20 Td (ed pursuant to Section?2\(b\) of the ) Tj ET Q q 0 0 0 rg BT 408.42 250.20 Td (Act:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 140.95 231.10 Td (T) Tj ET Q q 0 0 0 rg BT 146.87 231.10 Td (itle of each class) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 304.75 230.96 Td (? Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.15 231.10 Td (Name of each exchange on which r) Tj ET Q q 0 0 0 rg BT 481.97 231.10 Td (egister) Tj ET Q q 0 0 0 rg BT 507.29 231.10 Td (ed) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.05 217.43 Td (Common Stock, par) Tj ET Q q 0 0 0 rg BT 173.79 217.43 Td ( value $.01 per) Tj ET Q q 0 0 0 rg BT 235.83 217.43 Td ( shar) Tj ET Q q 0 0 0 rg BT 257.04 217.43 Td (e) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 304.75 217.96 Td (? Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.40 217.43 Td (New ) Tj ET Q q 0 0 0 rg BT 397.41 217.43 Td (Y) Tj ET Q q 0 0 0 rg BT 403.52 217.43 Td (ork Stock Exchange) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.00 202.20 Td (Securities r) Tj ET Q q 0 0 0 rg BT 231.41 202.20 Td (egister) Tj ET Q q 0 0 0 rg BT 259.55 202.20 Td (ed pursuant to Section?2\(g\) of the ) Tj ET Q q 0 0 0 rg BT 408.16 202.20 Td (Act:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.35 190.20 Td (None.) 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Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 516.07 164.20 Td (No ) Tj ET Q /GS0 gs q 8.02 0 0 9.18 529.32 162.26 cm /I4 Do Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.50 144.40 Td (Indicate by check mark if the registrant is not required to file reports pursuant to Section?3 or Section?5\(d\) of the ) Tj ET Q q 0 0 0 rg BT 475.38 144.40 Td (Act. ) Tj ET Q q 0 0 0 rg BT 492.54 144.40 Td (Y) Tj ET Q q 0 0 0 rg BT 498.14 144.40 Td (es ) Tj ET Q /GS0 gs q 8.02 0 0 9.18 507.89 142.46 cm /I5 Do Q /GS0 gs q 9.00 0 0 9.18 515.91 142.46 cm /I6 Do Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 524.91 144.40 Td (No ) Tj ET Q /GS0 gs q 9.54 0 0 9.18 538.16 142.46 cm /I7 Do Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.50 124.60 Td (Indicate by check mark whether the registrant \(1\) has filed all reports required to be filed by Section?3 or 15\(d\) of the Securities Exchange ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 47.00 113.80 Td (Act of 1934 during the preceding 12 months \(or for such shorter period that the registrant was required to file such reports\), and \(2\) has been ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 47.00 103.00 Td (subject to such filing requirements for the past 90 days.? Tj ET Q q 0 0 0 rg BT 248.37 103.00 Td (Y) Tj ET Q q 0 0 0 rg BT 253.97 103.00 Td (es ) Tj ET Q /GS0 gs q 9.54 0 0 9.18 263.72 101.06 cm /I8 Do Q /GS0 gs q 9.00 0 0 9.18 273.26 101.06 cm /I9 Do Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 282.26 103.00 Td (No ) Tj ET Q /GS0 gs q 8.02 0 0 9.18 295.51 101.06 cm /I10 Do Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.50 83.20 Td (Indicate by check mark whether the registrant has submitted electronically and posted on its website, if any) Tj ET Q q 0 0 0 rg BT 446.04 83.20 Td (, every Interactive Data File ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 47.00 72.40 Td (required to be submitted and posted pursuant to Rule 405 of Regulation S-T) Tj ET Q q 0 0 0 rg BT 320.29 72.40 Td ( \(?232.405 of this chapter\) during the preceding 12 months \(or for ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 47.00 61.60 Td (such shorter period that the registrant was required to submit and post such files\). ) Tj ET Q q 0 0 0 rg BT 341.85 61.60 Td (Y) Tj ET Q q 0 0 0 rg BT 347.45 61.60 Td (es ) Tj ET Q /GS0 gs q 9.54 0 0 9.18 357.19 59.66 cm /I11 Do Q /GS0 gs q 9.00 0 0 9.18 366.73 59.66 cm /I12 Do Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 375.73 61.60 Td (No ) Tj ET Q /GS0 gs q 8.02 0 0 9.18 388.98 59.66 cm /I13 Do Q endstream endobj 5 0 obj <>] /Rotate 0 /Contents 6 0 R>> endobj 6 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 771.18505859375 m 125.1953125 771.18505859375 l s q 0 0 1 rg BT 50.00 772.75 Td (T) Tj ET Q q 0 0 1 rg BT 55.75 772.75 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.50 745.30 Td (Indicate by check mark if disclosure of delinquent filers pursuant to Item?05 of Regulation S-K is not contained herein, and will not be ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 47.00 734.50 Td (contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 47.00 723.70 Td (Form?0-K or any amendment to this Form?0-K. ) Tj ET Q /GS0 gs q 8.02 0 0 9.18 227.98 721.76 cm /I14 Do Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 236.00 723.70 Td ( ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.50 703.90 Td (Indicate by check mark whether the registrant is a lar) Tj ET Q q 0 0 0 rg BT 251.50 703.90 Td (ge accelerated filer) Tj ET Q q 0 0 0 rg BT 319.59 703.90 Td (, an accelerated filer) Tj ET Q q 0 0 0 rg BT 392.17 703.90 Td (, a non-accelerated filer or a smaller reporting ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 47.00 693.10 Td (company \(as defined in Rule?2b-2 of the ) Tj ET Q q 0 0 0 rg BT 198.46 693.10 Td (Act\).) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 673.86 Td (Lar) Tj ET Q q 0 0 0 rg BT 62.41 673.86 Td (ge? Tj ET Q q 0 0 0 rg BT 72.82 673.86 Td (Accelerated Filer) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 170.00 673.86 Td (? Tj ET Q /GS0 gs q 9.54 0 0 8.78 190.00 671.32 cm /I15 Do Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 402.00 673.86 Td (Accelerated filer) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 522.00 673.86 Td (? Tj ET Q /GS0 gs q 8.02 0 0 8.78 542.00 671.32 cm /I16 Do Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 657.86 Td (Non-Accelerated Filer) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 170.00 657.86 Td (? Tj ET Q /GS0 gs q 8.02 0 0 8.78 190.00 655.32 cm /I17 Do Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 402.00 657.86 Td (Smaller reporting company) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 522.00 657.86 Td (? Tj ET Q /GS0 gs q 8.02 0 0 8.78 542.00 655.32 cm /I18 Do Q BT /F2 10.00 Tf ET BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.50 635.30 Td (Indicate by check mark whether registrant is a shell company \(as defined in Rule?2b-2 of the Exchange ) Tj ET Q q 0 0 0 rg BT 437.37 635.30 Td (Act\). ) Tj ET Q q 0 0 0 rg BT 457.53 635.30 Td (Y) Tj ET Q q 0 0 0 rg BT 463.13 635.30 Td (es ) Tj ET Q /GS0 gs q 8.02 0 0 9.18 472.87 633.36 cm /I19 Do Q /GS0 gs q 9.00 0 0 9.18 480.89 633.36 cm /I20 Do Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 489.89 635.30 Td (No ) Tj ET Q /GS0 gs q 9.54 0 0 9.18 503.14 633.36 cm /I21 Do Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.50 615.50 Td (Based on the closing price of the registrant's common stock as of June 30, 2017, the aggregate market value of the common stock held by ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 47.00 604.70 Td (non-af) Tj ET Q q 0 0 0 rg BT 70.33 604.70 Td (filiates of the registrant was $1.16 billion \(based upon the assumption, solely for purposes of this computation, that all of the of) Tj ET Q q 0 0 0 rg BT 528.08 604.70 Td (ficers ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 47.00 593.90 Td (and directors of the registrant were af) Tj ET Q q 0 0 0 rg BT 181.78 593.90 Td (filiates of the registrant\).) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.50 574.10 Td (Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date: ) Tj ET Q q 0 0 0 rg BT 515.80 574.10 Td (The number ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 47.00 563.30 Td (of shares of common stock outstanding as of ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 209.97 563.30 Td (February?6, 2018) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 276.21 563.30 Td ( was 20,913,251.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 214.75 543.50 Td (DOCUMENTS INCORPORA) Tj ET Q q 0 0 0 rg BT 324.02 543.50 Td (TED BY) Tj ET Q q 0 0 0 rg BT 355.93 543.50 Td ( REFERENCE) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.50 523.70 Td (List hereunder the following documents if incorporated by reference and the Part of the Form?0-K into which the document is ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 47.00 512.90 Td (incorporated:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.50 493.10 Td (Portions of the registrant's definitive Proxy Statement for the 2018 ) Tj ET Q q 0 0 0 rg BT 301.58 493.10 Td (Annual Meeting of Stockholders, to be filed within 120 days after the ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 47.00 482.30 Td (end of the registrant's fiscal year) Tj ET Q q 0 0 0 rg BT 163.46 482.30 Td (, are incorporated by reference into Part III, Items 10 through 14 of this ) Tj ET Q q 0 0 0 rg BT 421.88 482.30 Td (Annual Report on Form?0-K.) 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BT 532.50 616.92 Td (24) Tj ET Q BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 532.5 600.5833984375 m 542.5 600.5833984375 l s q 0 0 1 rg BT 532.50 601.92 Td (24) Tj ET Q BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 532.5 585.5833984375 m 542.5 585.5833984375 l s q 0 0 1 rg BT 532.50 586.92 Td (24) Tj ET Q BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 532.5 570.5833984375 m 542.5 570.5833984375 l s q 0 0 1 rg BT 532.50 571.92 Td (25) Tj ET Q BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 532.5 533.4833984375 m 542.5 533.4833984375 l s q 0 0 1 rg BT 532.50 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BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 532.5 364.5833984375 m 542.5 364.5833984375 l s q 0 0 1 rg BT 532.50 365.92 Td (91) Tj ET Q BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 532.5 349.5833984375 m 542.5 349.5833984375 l s q 0 0 1 rg BT 532.50 350.92 Td (91) Tj ET Q BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 532.5 334.5833984375 m 542.5 334.5833984375 l s q 0 0 1 rg BT 532.50 335.92 Td (91) Tj ET Q BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 532.5 319.5833984375 m 542.5 319.5833984375 l s q 0 0 1 rg BT 532.50 320.92 Td (91) Tj ET Q BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 532.5 281.5833984375 m 542.5 281.5833984375 l s q 0 0 1 rg BT 532.50 282.92 Td (92) Tj ET Q BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 532.5 266.5833984375 m 542.5 266.5833984375 l s q 0 0 1 rg BT 532.50 267.92 Td (95) Tj ET Q BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL endstream endobj 9 0 obj <>] /Rotate 0 /Contents 10 0 R>> endobj 10 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 771.18505859375 m 125.1953125 771.18505859375 l s q 0 0 1 rg BT 50.00 772.75 Td (T) Tj ET Q q 0 0 1 rg BT 55.75 772.75 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 29.10 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.55 744.75 Td (P) Tj ET Q q 0 0 0 rg BT 293.92 744.75 Td (AR) Tj ET Q q 0 0 0 rg BT 308.01 744.75 Td (T) Tj ET Q q 0 0 0 rg BT 314.50 744.75 Td ( I. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.30 723.75 Td (Forward-Looking Information ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 702.75 Td (Certain of the discussions and information included or incorporated by reference in this report may constitute "forward-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 690.75 Td (looking statements" within the meaning of the federal securities laws. Forward-looking statements are statements that are not ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 678.75 Td (historical in nature and may include statements relating to our goals, plans and projections regarding industry and general ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 666.75 Td (economic trends, our expected financial position, results of operations or market position and our business strategy) Tj ET Q q 0 0 0 rg BT 508.46 666.75 Td (. Such ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 654.75 Td (statements can generally be identified by words such as "may) Tj ET Q q 0 0 0 rg BT 294.80 654.75 Td (," "tar) Tj ET Q q 0 0 0 rg BT 318.33 654.75 Td (get," "could," "would," "will," "should," "believe," "expect," ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 642.75 Td ("anticipate," "plan," "intend," "foresee," and other similar words or phrases. Forward-looking statements may also relate to our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 630.75 Td (expectations and assumptions with respect to, among other things:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 606.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 606.75 Td (our ability to execute our business strategy;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 585.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 585.75 Td (the seasonally adjusted annual rate \("SAAR"\) of new vehicle sales in the U.S.;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 564.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 564.75 Td (our ability to further improve our operating cash flows, and the availability of capital and liquidity;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 543.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 543.75 Td (our estimated future capital expenditures;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 522.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 522.75 Td (general economic conditions and its impact on our revenues and expenses;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 501.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 501.75 Td (our parts and service revenue due to, among other things, improvements in manufacturing quality;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 480.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 480.75 Td (the variable nature of significant components of our cost structure;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 459.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 459.75 Td (our ability to limit our exposure to regional economic downturns due to our geographic diversity and brand mix;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 438.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 438.75 Td (manufacturers' willingness to continue to use incentive programs to drive demand for their product of) Tj ET Q q 0 0 0 rg BT 491.45 438.75 Td (ferings;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 417.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 417.75 Td (our ability to leverage our common systems, infrastructure and processes in a cost-ef) Tj ET Q q 0 0 0 rg BT 424.38 417.75 Td (ficient manner;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 396.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 396.75 Td (our capital allocation strategy) Tj ET Q q 0 0 0 rg BT 203.42 396.75 Td (, including as it relates to acquisitions and divestitures, stock repurchases, dividends and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 384.75 Td (capital expenditures;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 363.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 363.75 Td (the continued availability of financing, including floor plan financing for inventory;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 342.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 342.75 Td (the ability of consumers to secure vehicle financing at favorable rates;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 321.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 321.75 Td (the growth of import and luxury brands over the long-term;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 300.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 300.75 Td (our ability to mitigate any future negative trends in new vehicle sales; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 279.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 279.75 Td (our ability to increase our cash flow and net income as a result of the foregoing and other factors.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 258.75 Td (Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 246.75 Td (future results, performance or achievements to be materially dif) Tj ET Q q 0 0 0 rg BT 303.94 246.75 Td (ferent from any future results, performance, or achievements ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 234.75 Td (expressed or implied by the forward-looking statements. Such factors include, but are not limited to:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 210.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 210.75 Td (changes in general economic and business conditions, including changes in employment levels, consumer demand, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 198.75 Td (preferences and confidence levels, the availability and cost of credit, fuel prices, levels of discretionary personal ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 186.75 Td (income and interest rates;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 165.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 165.75 Td (our ability to execute our balanced automotive retailing and service business strategy;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 144.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 144.75 Td (adverse conditions af) Tj ET Q q 0 0 0 rg BT 170.29 144.75 Td (fecting the vehicle manufactures whose brands we sell, and their ability to design, manufacture, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 132.75 Td (deliver) Tj ET Q q 0 0 0 rg BT 112.86 132.75 Td (, and market their vehicles successfully;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 111.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 111.75 Td (changes in the mix, and total number) Tj ET Q q 0 0 0 rg BT 233.12 111.75 Td (, of vehicles we are able to sell;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 90.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 90.75 Td (our outstanding indebtedness and our continued ability to comply with applicable covenants in our various financing ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 78.75 Td (and lease agreements, or to obtain waivers of these covenants as necessary;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 57.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 57.75 Td (high levels of competition in our industry) Tj ET Q q 0 0 0 rg BT 250.94 57.75 Td (, which may create pricing and mar) Tj ET Q q 0 0 0 rg BT 392.09 57.75 Td (gin pressures on our products and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 45.75 Td (services;) Tj ET Q endstream endobj 11 0 obj <>] /Rotate 0 /Contents 12 0 R>> endobj 12 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 771.18505859375 m 125.1953125 771.18505859375 l s q 0 0 1 rg BT 50.00 772.75 Td (T) Tj ET Q q 0 0 1 rg BT 55.75 772.75 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 29.10 Td (5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 744.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 744.60 Td (our relationships with manufacturers of the vehicles we sell and our ability to renew) Tj ET Q q 0 0 0 rg BT 421.14 744.60 Td (, and enter into new framework ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 732.60 Td (and dealer agreements with vehicle manufacturers whose brands we sell, on terms acceptable to us;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 711.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 711.60 Td (the availability of manufacturer incentive programs and our ability to earn these incentives;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 690.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 690.60 Td (failure of our management information systems or any security breaches;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 669.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 669.60 Td (changes in laws and regulations governing the operation of automobile franchises, including trade restrictions, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 657.60 Td (consumer protections, accounting standards, taxation requirements, and environmental laws;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 636.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 636.60 Td (adverse results from litigation or other similar proceedings involving us;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 615.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 615.60 Td (our ability to generate suf) Tj ET Q q 0 0 0 rg BT 188.06 615.60 Td (ficient cash flows, maintain our liquidity and obtain any necessary additional funds for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 603.60 Td (working capital, capital expenditures, acquisitions, stock repurchases and/or dividends, debt maturity payments, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 591.60 Td (other corporate purposes;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 570.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 570.60 Td (any disruptions in the financial markets, which may impact our ability to access capital;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 549.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 549.60 Td (our relationships with, and the financial stability of, our lenders and lessors;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 528.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 528.60 Td (significant disruptions in the production and delivery of vehicles and parts for any reason, including natural disasters, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 516.60 Td (product recalls, work stoppages, significant property loss or other occurrences that are outside of our control;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 495.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 495.60 Td (our ability to execute our initiatives and other strategies; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 474.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 474.60 Td (our ability to leverage gains from our dealership portfolio.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 453.60 Td (Many of these factors are beyond our ability to control or predict, and their ultimate impact could be material. Moreover) Tj ET Q q 0 0 0 rg BT 545.33 453.60 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 441.60 Td (the factors set forth under "Item 1A. Risk Factors" and "Item 7. Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 428.75 441.60 Td (Analysis of Financial Condition ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 429.60 Td (and Results of Operations" below and other cautionary statements made in this report should be read and considered as ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 417.60 Td (forward-looking statements subject to such uncertainties. ) Tj ET Q q 0 0 0 rg BT 280.09 417.60 Td (W) Tj ET Q q 0 0 0 rg BT 288.73 417.60 Td (e ur) Tj ET Q q 0 0 0 rg BT 303.82 417.60 Td (ge you to carefully consider those factors.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 396.60 Td (Forward-looking statements speak only as of the date of this report. ) Tj ET Q q 0 0 0 rg BT 337.03 396.60 Td (W) Tj ET Q q 0 0 0 rg BT 345.67 396.60 Td (e expressly disclaim any obligation to update any ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 384.60 Td (forward-looking statement contained herein.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 363.60 Td (Additional Information) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 342.60 Td (Our annual reports on Form?0-K, quarterly reports on Form?0-Q, current reports on Form?-K, and any amendments to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 330.60 Td (such reports filed pursuant to Section?3\(a\) or 15\(d\) of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 368.58 330.60 Td (Act of 1934, are made available free of char) Tj ET Q q 0 0 0 rg BT 544.69 330.60 Td (ge ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 318.60 Td (on our website at ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 120.59 318.60 Td (http://www) Tj ET Q q 0 0 0 rg BT 164.30 318.60 Td (.asburyauto.com) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.96 318.60 Td ( as soon as practical after such reports are filed with the U.S. Securities and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 306.60 Td (Exchange Commission \(the "Commission"\). In addition, the proxy statement that will be delivered to our stockholders in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 294.60 Td (connection with our 2017 ) Tj ET Q q 0 0 0 rg BT 153.93 294.60 Td (Annual Meeting of Stockholders, when filed, will also be available on our website, and at the URL) Tj ET Q q 0 0 0 rg BT 549.29 294.60 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 282.60 Td (stated in such proxy statement. ) Tj ET Q q 0 0 0 rg BT 175.40 282.60 Td (W) Tj ET Q q 0 0 0 rg BT 184.04 282.60 Td (e also make available on our website copies of our certificate of incorporation, bylaws, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 270.60 Td (other materials that outline our corporate governance policies and practices, including:) Tj ET Q BT /F2 5.00 Tf ET q 0 0 0 rg BT 49.50 264.60 Td (? Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 252.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 252.60 Td (the respective charters of our audit committee, governance and nominating committee, compensation and human ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 240.60 Td (resources committee, and risk management committee;) Tj ET Q BT /F2 5.00 Tf ET q 0 0 0 rg BT 49.50 234.60 Td (? Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 222.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 222.60 Td (our criteria for independence of the members of our board of directors, audit committee, and compensation and human ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 210.60 Td (resources committee;) Tj ET Q BT /F2 5.00 Tf ET q 0 0 0 rg BT 49.50 204.60 Td (? Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 192.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 192.60 Td (our Corporate Governance Guidelines; and) Tj ET Q BT /F2 5.00 Tf ET q 0 0 0 rg BT 49.50 186.60 Td (? Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 174.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 174.60 Td (our Code of Business Conduct and Ethics for Directors, Of) Tj ET Q q 0 0 0 rg BT 321.39 174.60 Td (ficers, and Employees.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 153.60 Td (W) Tj ET Q q 0 0 0 rg BT 73.14 153.60 Td (e intend to provide any information required by Item?.05 of Form 8-K \(relating to amendments or waivers of our Code of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 141.60 Td (Business Conduct and Ethics for Directors, Of) Tj ET Q q 0 0 0 rg BT 235.12 141.60 Td (ficers, and Employees\) by disclosure on our website.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 120.60 Td (Y) Tj ET Q q 0 0 0 rg BT 70.72 120.60 Td (ou may also obtain a printed copy of the foregoing materials by sending a written request to: Investor Relations ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 108.60 Td (Department, ) Tj ET Q q 0 0 0 rg BT 101.15 108.60 Td (Asbury ) Tj ET Q q 0 0 0 rg BT 132.54 108.60 Td (Automotive Group, Inc., 2905 Premiere Parkway) Tj ET Q q 0 0 0 rg BT 329.07 108.60 Td (, NW) Tj ET Q q 0 0 0 rg BT 349.81 108.60 Td (, Suite 300, Duluth, Geor) Tj ET Q q 0 0 0 rg BT 450.46 108.60 Td (gia 30097. In addition, the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 96.60 Td (Commission makes available on its website, free of char) Tj ET Q q 0 0 0 rg BT 275.09 96.60 Td (ge, reports, proxy and information statements, and other information ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 84.60 Td (regarding issuers, such as us, that file electronically with the Commission. ) Tj ET Q q 0 0 0 rg BT 348.70 84.60 Td (The Commission's website is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 467.73 84.60 Td (http://www) Tj ET Q q 0 0 0 rg BT 511.44 84.60 Td (.sec.gov) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 84.60 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 72.60 Td (Unless otherwise specified, information contained on our website, available by hyperlink from our website or on the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 60.60 Td (Commission's website, is not incorporated into this report or other documents we file with, or furnish to, the Commission.) Tj ET Q endstream endobj 13 0 obj <>] /Rotate 0 /Contents 14 0 R>> endobj 14 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 771.18505859375 m 125.1953125 771.18505859375 l s q 0 0 1 rg BT 50.00 772.75 Td (T) Tj ET Q q 0 0 1 rg BT 55.75 772.75 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 29.10 Td (6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 744.60 Td (Except as the context otherwise requires, "we," "our) Tj ET Q q 0 0 0 rg BT 272.66 744.60 Td (," "us," "Asbury) Tj ET Q q 0 0 0 rg BT 336.68 744.60 Td (," and "the Company" refer to ) Tj ET Q q 0 0 0 rg BT 458.06 744.60 Td (Asbury ) Tj ET Q q 0 0 0 rg BT 489.45 744.60 Td (Automotive ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 732.60 Td (Group, Inc. and its subsidiaries.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 714.60 Td (Item 1. BUSINESS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 693.60 Td (Asbury ) Tj ET Q q 0 0 0 rg BT 95.89 693.60 Td (Automotive Group, Inc., a Delaware corporation or) Tj ET Q q 0 0 0 rg BT 301.47 693.60 Td (ganized in 2002, is one of the lar) Tj ET Q q 0 0 0 rg BT 432.37 693.60 Td (gest automotive retailers in the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 681.60 Td (United States. Our store operations are conducted by our subsidiaries.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 660.60 Td (As of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.94 660.60 Td (December?1, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 167.53 660.60 Td (, we owned and operated ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 269.71 660.60 Td (94) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 279.71 660.60 Td ( new vehicle franchises, representing ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.20 660.60 Td (29) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.20 660.60 Td ( brands of automobiles at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.79 660.60 Td (80) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.79 660.60 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 648.60 Td (dealership locations, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 151.14 648.60 Td (24) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 161.14 648.60 Td ( collision centers in the United States. Our stores of) Tj ET Q q 0 0 0 rg BT 367.02 648.60 Td (fer an extensive range of automotive products ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 636.60 Td (and services, including new and used vehicles; parts and service, including vehicle repair and maintenance services, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 624.60 Td (replacement parts, and collision repair services; and finance and insurance products, including arranging vehicle financing ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 612.60 Td (through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection \("GAP"\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 600.60 Td (insurance, prepaid maintenance, and credit life and disability insurance.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 579.60 Td (Our operations provide a diverse revenue base that we believe mitigates the impact of fluctuations in new vehicle sales ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 567.60 Td (volumes and gross profit mar) Tj ET Q q 0 0 0 rg BT 166.52 567.60 Td (gins. In addition, our geographic footprint decreases our exposure to regional economic conditions ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 555.60 Td (and our brand diversification decreases our exposure to manufacturer) Tj ET Q q 0 0 0 rg BT 326.41 555.60 Td (-specific risks, such as brand perception or production ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 543.60 Td (disruptions. ) Tj ET Q q 0 0 0 rg BT 98.40 543.60 Td (Approximately 84% of our gross profit is derived from used vehicles, parts and service, and finance and insurance ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 531.60 Td (which historically have been more stable throughout economic cycles.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 63.00 510.60 Td (The following charts present the contribution to total revenue and gross profit by each line of business for the year ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 498.60 Td (December?1, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 128.08 498.60 Td (:) Tj ET Q /GS0 gs q 256.00 0 0 213.00 49.50 271.60 cm /I22 Do Q /GS0 gs q 256.00 0 0 213.00 305.50 271.60 cm /I23 Do Q BT /F2 10.00 Tf ET endstream endobj 15 0 obj <>] /Rotate 0 /Contents 16 0 R>> endobj 16 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 771.18505859375 m 125.1953125 771.18505859375 l s q 0 0 1 rg BT 50.00 772.75 Td (T) Tj ET Q q 0 0 1 rg BT 55.75 772.75 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 29.10 Td (7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 744.60 Td (Our new vehicle franchise retail network is made up of dealerships located in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.33 744.60 Td (17) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.33 744.60 Td ( metropolitan markets in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 486.86 744.60 Td (9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 491.86 744.60 Td ( states operating ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 732.60 Td (primarily under eight locally-branded dealership groups. ) Tj ET Q q 0 0 0 rg BT 277.86 732.60 Td (The following chart provides a detailed breakdown of our markets, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 720.60 Td (brand names, and franchises as of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 186.95 720.60 Td (December?1, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.54 720.60 Td (:) Tj ET Q BT /F1 9.00 Tf ET 0 0 0 RG /GS0 gs 0.86 w 0 i [] 0 d 1 J 1 j 3 M 80.95 690.146337890625 m 150.0408203125 690.146337890625 l s q 0 0 0 rg BT 80.95 691.55 Td (Dealership Gr) Tj ET Q q 0 0 0 rg BT 135.61 691.55 Td (oup) Tj ET Q BT /F1 9.00 Tf ET 0 0 0 RG /GS0 gs 0.86 w 0 i [] 0 d 1 J 1 j 3 M 214 690.146337890625 m 242.986328125 690.146337890625 l s q 0 0 0 rg BT 214.00 691.55 Td (Market) Tj ET Q BT /F1 9.00 Tf ET 0 0 0 RG /GS0 gs 0.86 w 0 i [] 0 d 1 J 1 j 3 M 372.75 690.146337890625 m 462.24462890625 690.146337890625 l s q 0 0 0 rg BT 372.75 691.55 Td (Franchise Brand Name) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 673.67 Td (Coggin? Tj ET Q q 0 0 0 rg BT 84.17 673.67 Td (Automotive Group) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.50 673.67 Td (Fort Pierce, FL) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 274.50 674.36 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.50 673.67 Td (Acura, BMW) Tj ET Q q 0 0 0 rg BT 332.47 673.67 Td (, Honda, Mercedes-Benz) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.50 658.67 Td (Jacksonville, FL) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 274.50 659.36 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.50 658.67 Td (Buick, Chevrolet, Ford, GMC, Honda\(a\), Nissan\(a\), ) Tj ET Q q 0 0 0 rg BT 489.48 658.67 Td (T) Tj ET Q q 0 0 0 rg BT 495.15 658.67 Td (oyota) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.50 643.67 Td (Orlando, FL) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 274.50 644.36 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.50 643.67 Td (Ford, Honda\(a\), Hyundai, Lincoln) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 624.67 Td (Courtesy ) Tj ET Q q 0 0 0 rg BT 90.83 624.67 Td (Autogroup) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 184.50 625.36 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.50 624.67 Td (T) Tj ET Q q 0 0 0 rg BT 194.26 624.67 Td (ampa, FL) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 274.50 625.36 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.50 624.67 Td (Chrysler) Tj ET Q q 0 0 0 rg BT 312.74 624.67 Td (, Dodge, Honda, Hyundai, Infiniti, Jeep, Kia, Mercedes-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.50 614.67 Td (Benz, Nissan, smart \(b\), Sprinter) Tj ET Q q 0 0 0 rg BT 409.66 614.67 Td (, ) Tj ET Q q 0 0 0 rg BT 414.37 614.67 Td (T) Tj ET Q q 0 0 0 rg BT 420.04 614.67 Td (oyota) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 595.67 Td (Crown? Tj ET Q q 0 0 0 rg BT 81.95 595.67 Td (Automotive Company) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.50 595.67 Td (Charlottesville, ) Tj ET Q q 0 0 0 rg BT 252.29 595.67 Td (V) Tj ET Q q 0 0 0 rg BT 258.77 595.67 Td (A) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 274.50 596.36 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.50 595.67 Td (BMW) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.50 580.67 Td (Durham, NC) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.50 580.67 Td (Honda) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.50 565.67 Td (Fayetteville, NC) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.50 565.67 Td (Dodge, Ford) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.50 550.67 Td (Greensboro, NC) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 274.50 551.36 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.50 550.67 Td (Acura, BMW) Tj ET Q q 0 0 0 rg BT 332.47 550.67 Td (, Chrysler) Tj ET Q q 0 0 0 rg BT 371.25 550.67 Td (, Dodge, Honda, Jeep, Nissan, ) Tj ET Q q 0 0 0 rg BT 494.27 550.67 Td (V) Tj ET Q q 0 0 0 rg BT 500.76 550.67 Td (olvo) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.50 535.67 Td (Greenville, SC) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 274.50 536.36 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.50 535.67 Td (Jaguar) Tj ET Q q 0 0 0 rg BT 304.40 535.67 Td (, Land Rover) Tj ET Q q 0 0 0 rg BT 356.48 535.67 Td (, Lexus, Nissan, Porsche, ) Tj ET Q q 0 0 0 rg BT 459.51 535.67 Td (T) Tj ET Q q 0 0 0 rg BT 465.18 535.67 Td (oyota, ) Tj ET Q q 0 0 0 rg BT 491.96 535.67 Td (V) Tj ET Q q 0 0 0 rg BT 498.45 535.67 Td (olvo) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.50 520.67 Td (Richmond, ) Tj ET Q q 0 0 0 rg BT 235.07 520.67 Td (V) Tj ET Q q 0 0 0 rg BT 241.56 520.67 Td (A) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 274.50 521.36 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.50 520.67 Td (Acura, BMW\(a\), MINI) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 501.67 Td (David McDavid? Tj ET Q q 0 0 0 rg BT 119.43 501.67 Td (Auto Group) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.50 501.67 Td (Austin, ) Tj ET Q q 0 0 0 rg BT 220.08 501.67 Td (TX) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 274.50 502.36 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.50 501.67 Td (Acura) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.50 486.67 Td (Dallas/) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.50 476.67 Td (Fort? Tj ET Q q 0 0 0 rg BT 207.58 476.67 Td (W) Tj ET Q q 0 0 0 rg BT 216.53 476.67 Td (orth,? Tj ET Q q 0 0 0 rg BT 237.15 476.67 Td (TX) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 274.50 487.36 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.50 486.67 Td (Acura, Ford, Honda\(a\), Lincoln) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.50 461.67 Td (Houston, ) Tj ET Q q 0 0 0 rg BT 227.30 461.67 Td (TX) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.50 461.67 Td (Nissan) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 442.67 Td (Gray-Daniels ) Tj ET Q q 0 0 0 rg BT 108.59 442.67 Td (Auto Family) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.50 442.67 Td (Jackson, MS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.50 442.67 Td (Chevrolet, Ford, Lincoln, Nissan\(a\), ) Tj ET Q q 0 0 0 rg BT 426.16 442.67 Td (T) Tj ET Q q 0 0 0 rg BT 431.83 442.67 Td (oyota) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 423.67 Td (Hare ) Tj ET Q q 0 0 0 rg BT 74.15 423.67 Td (Automotive Group) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.50 423.67 Td (Indianapolis, IN) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.50 423.67 Td (Chevrolet, Isuzu) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 404.67 Td (Nalley? Tj ET Q q 0 0 0 rg BT 81.38 404.67 Td (Automotive Group) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 184.50 405.36 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.50 404.67 Td (Atlanta, GA) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 274.50 405.36 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.50 404.67 Td (Acura, ) Tj ET Q q 0 0 0 rg BT 307.65 404.67 Td (Audi, Bentley) Tj ET Q q 0 0 0 rg BT 363.16 404.67 Td (, BMW) Tj ET Q q 0 0 0 rg BT 392.37 404.67 Td (, Ford, Honda, Hyundai, Infiniti\(a\), Kia,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.50 394.67 Td (Lexus\(a\), Nissan\(a\), ) Tj ET Q q 0 0 0 rg BT 362.27 394.67 Td (T) Tj ET Q q 0 0 0 rg BT 367.94 394.67 Td (oyota\(a\), ) Tj ET Q q 0 0 0 rg BT 405.81 394.67 Td (V) Tj ET Q q 0 0 0 rg BT 412.30 394.67 Td (olkswagen) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 375.67 Td (Plaza Motor Company) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.50 375.67 Td (St. Louis, MO) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.50 375.67 Td (Audi, BMW) Tj ET Q q 0 0 0 rg BT 327.58 375.67 Td (, Infiniti, Jaguar) Tj ET Q q 0 0 0 rg BT 391.05 375.67 Td (, Land Rover) Tj ET Q q 0 0 0 rg BT 443.14 375.67 Td (, Lexus, Mercedes-Benz\(a\),) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.50 365.67 Td (smart \(b\), Sprinter\(a\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 348.60 Td (_____________________________) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 336.60 Td (\(a\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 90.00 336.60 Td (This market has two of these franchises.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 324.60 Td (\(b\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 90.00 324.60 Td (Parts and service operations only) Tj ET Q q 0 0 0 rg BT 221.54 324.60 Td (.) Tj ET Q endstream endobj 17 0 obj <>] /Rotate 0 /Contents 18 0 R>> endobj 18 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 771.18505859375 m 125.1953125 771.18505859375 l s q 0 0 1 rg BT 50.00 772.75 Td (T) Tj ET Q q 0 0 1 rg BT 55.75 772.75 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 29.10 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 744.75 Td (Operations) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 723.75 Td (New V) Tj ET Q q 0 0 0 rg BT 75.89 723.75 Td (ehicle Sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 702.75 Td (The following table reflects the number of franchises we owned as of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.40 702.75 Td (December?1, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.99 702.75 Td ( and the percentage of new vehicle ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 690.75 Td (revenues represented by class and franchise for the year ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.60 690.75 Td (December?1, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.19 690.75 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 657.25 344.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 657.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 657.25 83.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 657.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 657.25 78.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 630.25 344.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 630.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 630.25 83.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 630.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 630.25 78.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 602.25 344.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 602.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 602.25 83.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 602.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 602.25 78.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 574.25 344.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 574.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 574.25 83.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 574.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 574.25 78.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 546.25 344.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 546.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 546.25 83.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 546.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 546.25 78.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 518.25 344.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 518.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 518.25 83.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 518.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 518.25 78.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 490.25 344.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 490.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 490.25 83.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 490.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 490.25 78.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 462.25 344.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 462.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 462.25 83.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 462.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 462.25 78.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 435.25 344.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 435.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 435.25 83.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 435.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 435.25 78.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 407.25 344.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 407.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 407.25 83.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 407.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 407.25 78.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 379.25 344.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 379.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 379.25 83.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 379.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 379.25 78.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 351.25 344.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 351.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 351.25 83.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 351.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 351.25 78.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 323.25 344.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 323.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 323.25 83.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 323.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 323.25 78.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 295.25 344.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 295.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 295.25 83.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 295.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 295.25 78.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 268.25 344.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 268.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 268.25 83.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 268.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 268.25 78.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 240.25 344.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 240.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 240.25 83.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 240.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 240.25 78.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 212.25 344.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 212.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 212.25 83.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 212.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 212.25 78.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 184.25 344.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 184.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 184.25 83.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 184.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 184.25 78.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49 657.25 m 393 657.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 657.25 m 480 657.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484 657.25 m 562 657.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 476.25 m 480 476.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484 476.25 m 562 476.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 309.25 m 480 309.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484 309.25 m 562 309.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 184.25 m 480 184.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484 184.25 m 562 184.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 170.25 m 480 170.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 157.25 m 480 157.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 155.25 m 480 155.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484 170.25 m 562 170.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484 157.25 m 562 157.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484 155.25 m 562 155.25 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 661.93 Td (Class/Franchise) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.20 670.70 Td (Number) Tj ET Q q 0 0 0 rg BT 449.12 670.70 Td ( of) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 402.35 661.70 Td (Franchises Owned) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.50 670.70 Td (% of New) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.25 661.70 Td (V) Tj ET Q q 0 0 0 rg BT 494.92 661.70 Td (ehicle Revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 647.98 Td (Luxury) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 634.82 Td (Mercedes-Benz) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 634.82 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.15 634.82 Td (7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.15 634.82 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 620.82 Td (Lexus) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 620.82 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.15 620.82 Td (7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 606.82 Td (BMW) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 606.82 Td (7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.15 606.82 Td (6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 592.82 Td (Acura) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 592.82 Td (6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.15 592.82 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 578.82 Td (Infiniti) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 578.82 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.15 578.82 Td (3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 564.82 Td (Audi) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 564.82 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.15 564.82 Td (3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 550.82 Td (Lincoln) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 550.82 Td (3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.15 550.82 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 536.82 Td (V) Tj ET Q q 0 0 0 rg BT 58.08 536.82 Td (olvo) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 536.82 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.15 536.82 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 522.82 Td (Land Rover) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 522.82 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.15 522.82 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 508.82 Td (Jaguar) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 508.82 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.15 508.82 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 494.82 Td (Porsche) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 494.82 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.50 494.82 Td (*) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 480.82 Td (Bentley) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 480.82 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.50 480.82 Td (*) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 75.50 466.82 Td (T) Tj ET Q q 0 0 0 rg BT 81.26 466.82 Td (otal Luxury) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 466.82 Td (38) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 466.82 Td (34) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.15 466.82 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 452.98 Td (Import) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 439.82 Td (Honda) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 439.82 Td (1) Tj ET Q q 0 0 0 rg BT 471.15 439.82 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 439.82 Td (18) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.15 439.82 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 425.82 Td (T) Tj ET Q q 0 0 0 rg BT 57.26 425.82 Td (oyota) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 425.82 Td (6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 425.82 Td (1) Tj ET Q q 0 0 0 rg BT 548.15 425.82 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 411.82 Td (Nissan) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 411.82 Td (10) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 411.82 Td (12) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 397.82 Td (Kia) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 397.82 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.15 397.82 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 383.82 Td (Hyundai) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 383.82 Td (3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.15 383.82 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 369.82 Td (V) Tj ET Q q 0 0 0 rg BT 58.08 369.82 Td (olkswagen) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 369.82 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.15 369.82 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 355.82 Td (MINI) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 355.82 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.50 355.82 Td (*) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 341.82 Td (smart \(a\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 341.82 Td (? Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.50 341.82 Td (*) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 327.82 Td (Isuzu) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 327.82 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.50 327.82 Td (*) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 313.82 Td (Sprinter) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 313.82 Td (3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.50 313.82 Td (*) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 75.50 299.82 Td (T) Tj ET Q q 0 0 0 rg BT 81.26 299.82 Td (otal Import) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 299.82 Td (38) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 299.82 Td (46) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.15 299.82 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 285.98 Td (Domestic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 272.82 Td (Ford) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 272.82 Td (6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 272.82 Td (1) Tj ET Q q 0 0 0 rg BT 548.15 272.82 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.15 272.82 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 258.82 Td (Chevrolet) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 258.82 Td (3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.15 258.82 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 244.82 Td (Dodge) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 244.82 Td (3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.15 244.82 Td (3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 230.82 Td (Jeep) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 230.82 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.15 230.82 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 216.82 Td (GMC) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 216.82 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.15 216.82 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 202.82 Td (Chrysler) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 202.82 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.50 202.82 Td (*) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 188.82 Td (Buick) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 188.82 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.50 188.82 Td (*) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 75.50 174.82 Td (T) Tj ET Q q 0 0 0 rg BT 80.91 174.82 Td (otal Domestic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 174.82 Td (18) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 174.82 Td (20) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.15 174.82 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 160.93 Td (T) Tj ET Q q 0 0 0 rg BT 81.25 160.93 Td (otal Franchises) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 160.82 Td (94) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 538.15 160.82 Td (100) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.15 160.82 Td (%) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 139.75 Td (\(a\) ) Tj ET Q q 0 0 0 rg BT 62.92 139.75 Td (T) Tj ET Q q 0 0 0 rg BT 68.33 139.75 Td (wo Franchise agreements pursuant to which we perform parts and service operations. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 122.75 Td (* Franchise accounted for less than 1% of new vehicle revenues for the year ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 382.98 122.75 Td (December?1, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.56 122.75 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 101.75 Td (Our new vehicle revenues include new vehicle sales and lease transactions arranged by our dealerships with third-party ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 89.75 Td (financial institutions. ) Tj ET Q q 0 0 0 rg BT 136.25 89.75 Td (W) Tj ET Q q 0 0 0 rg BT 144.89 89.75 Td (e believe that leasing provides a number of benefits to our other business lines, including the historical ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 77.75 Td (customer loyalty to the leasing dealership for repairs and maintenance services and the fact that lessors typically give the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 65.75 Td (leasing dealership the first option to purchase the of) Tj ET Q q 0 0 0 rg BT 256.48 65.75 Td (f-lease vehicle. ) Tj ET Q endstream endobj 19 0 obj <>] /Rotate 0 /Contents 20 0 R>> endobj 20 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 771.18505859375 m 125.1953125 771.18505859375 l s q 0 0 1 rg BT 50.00 772.75 Td (T) Tj ET Q q 0 0 1 rg BT 55.75 772.75 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 29.10 Td (9) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 744.75 Td (Used V) Tj ET Q q 0 0 0 rg BT 78.11 744.75 Td (ehicle Sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 723.75 Td (W) Tj ET Q q 0 0 0 rg BT 73.14 723.75 Td (e sell used vehicles at all of our franchised dealership locations. Used vehicle sales include the sale of used vehicles to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 711.75 Td (individual retail customers \("used retail"\) and the sale of used vehicles to other dealers at auction \("wholesale"\) \(the terms "used ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 699.75 Td (retail" and "wholesale" collectively referred to as "used"\). ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 678.75 Td (Gross profit from the sale of used vehicles depends primarily on our dealerships' ability to obtain a high quality supply of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 666.75 Td (used vehicles and our use of technology to manage our inventory) Tj ET Q q 0 0 0 rg BT 309.33 666.75 Td (. Our new vehicle operations typically provide our used ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 654.75 Td (vehicle operations with a lar) Tj ET Q q 0 0 0 rg BT 162.61 654.75 Td (ge supply of trade-ins and of) Tj ET Q q 0 0 0 rg BT 277.12 654.75 Td (f-lease vehicles, which we believe are good sources of high quality ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 642.75 Td (used vehicles. ) Tj ET Q q 0 0 0 rg BT 107.91 642.75 Td (W) Tj ET Q q 0 0 0 rg BT 116.55 642.75 Td (e also purchase a portion of our used vehicle inventory at "open" auctions and auctions restricted to new ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 630.75 Td (vehicle dealers. ) Tj ET Q q 0 0 0 rg BT 113.64 630.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 163.54 630.75 Td (, our used vehicle sales benefit from our ability to sell certified pre-owned vehicles from our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 618.75 Td (franchised dealerships.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 597.75 Td (Parts and Service) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 576.75 Td (W) Tj ET Q q 0 0 0 rg BT 73.14 576.75 Td (e provide vehicle repair and maintenance services, sell replacement parts, and recondition used vehicles at all of our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 564.75 Td (dealerships. In addition, we provide collision repair services at our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 318.31 564.75 Td (24) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 328.31 564.75 Td ( free-standing collision repair centers that we operate ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 552.75 Td (either on the premises of, or in close proximity to, our dealerships. Historically) Tj ET Q q 0 0 0 rg BT 364.61 552.75 Td (, parts and service revenues have been more ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 540.75 Td (stable than those from vehicle sales. Industry-wide, parts and service revenues have consistently increased over time primarily ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 528.75 Td (due to the increased cost of maintaining vehicles, the added technical complexity of vehicles, and the increasing number of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 516.75 Td (vehicles on the road. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 495.75 Td (The automotive parts and service industry tends to be highly fragmented, with franchised dealerships and independent ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 483.75 Td (repair shops competing for this business. ) Tj ET Q q 0 0 0 rg BT 215.13 483.75 Td (W) Tj ET Q q 0 0 0 rg BT 223.77 483.75 Td (e believe, however) Tj ET Q q 0 0 0 rg BT 298.61 483.75 Td (, that the increased use of advanced technology in vehicles is ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 471.75 Td (making it dif) Tj ET Q q 0 0 0 rg BT 100.98 471.75 Td (ficult for independent repair shops to compete ef) Tj ET Q q 0 0 0 rg BT 295.45 471.75 Td (fectively with franchised dealerships as they may not be able to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 459.75 Td (make the investment necessary to perform major or technical repairs. In an ef) Tj ET Q q 0 0 0 rg BT 358.91 459.75 Td (fort to maintain the necessary knowledge to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 447.75 Td (service vehicles and further develop our technician staf) Tj ET Q q 0 0 0 rg BT 270.06 447.75 Td (f, we focus on our internal and manufacturer specific training and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 435.75 Td (development programs for new and existing technicians. ) Tj ET Q q 0 0 0 rg BT 278.14 435.75 Td (W) Tj ET Q q 0 0 0 rg BT 286.78 435.75 Td (e believe our parts and service business is also well-positioned to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 423.75 Td (benefit from the service work potentially generated through the sale of extended service contracts to customers who purchase ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 411.75 Td (new and used vehicles from us, as historically these customers tend to have their vehicles serviced at the location where they ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 399.75 Td (purchased the extended service contract. In addition, our franchised dealerships benefit from manufacturer policies requiring ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 387.75 Td (that warranty and recall related repairs be performed at a franchised dealership. ) Tj ET Q q 0 0 0 rg BT 368.88 387.75 Td (W) Tj ET Q q 0 0 0 rg BT 377.52 387.75 Td (e believe that our collision repair centers ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 375.75 Td (provide us with an attractive opportunity to grow our business due to the high mar) Tj ET Q q 0 0 0 rg BT 378.15 375.75 Td (gins provided by collision repair services and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 363.75 Td (the fact that we are able to source original equipment manufacturer parts from our franchised dealerships. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 342.75 Td (Finance and Insurance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 321.75 Td (W) Tj ET Q q 0 0 0 rg BT 73.14 321.75 Td (e of) Tj ET Q q 0 0 0 rg BT 88.23 321.75 Td (fer a wide variety of automotive finance and insurance \("F&I"\) products to our customers. ) Tj ET Q q 0 0 0 rg BT 451.37 321.75 Td (W) Tj ET Q q 0 0 0 rg BT 460.01 321.75 Td (e arrange third-party ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 309.75 Td (financing for the sale or lease of vehicles to our customers in exchange for a fee paid to us by the third-party financial ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 297.75 Td (institution. ) Tj ET Q q 0 0 0 rg BT 94.88 297.75 Td (W) Tj ET Q q 0 0 0 rg BT 103.52 297.75 Td (e do not directly finance our customers' vehicle purchases or leases, therefore our exposure to losses in connection ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 285.75 Td (with those third-party financing arrangements is limited generally to the fees that we receive. ) Tj ET Q q 0 0 0 rg BT 423.91 285.75 Td (The fees we receive are subject to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 273.75 Td (char) Tj ET Q q 0 0 0 rg BT 66.53 273.75 Td (geback, or repayment, to the finance company if a customer defaults or prepays the retail installment contract typically ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 261.75 Td (during some limited time period at the beginning of the contract term. ) Tj ET Q q 0 0 0 rg BT 331.19 261.75 Td (W) Tj ET Q q 0 0 0 rg BT 339.83 261.75 Td (e have negotiated agreements with certain lenders ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 249.75 Td (pursuant to which we receive additional fees upon reaching a certain volume of business. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 228.75 Td (W) Tj ET Q q 0 0 0 rg BT 73.14 228.75 Td (e of) Tj ET Q q 0 0 0 rg BT 88.23 228.75 Td (fer our customers a variety of vehicle protection products in connection with the purchase of vehicles. ) Tj ET Q q 0 0 0 rg BT 498.18 228.75 Td (These products ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 216.75 Td (are underwritten and administered by independent third-parties. Under our arrangements with the providers of these products, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 204.75 Td (we primarily sell the products on a straight commission basis. ) Tj ET Q q 0 0 0 rg BT 299.00 204.75 Td (W) Tj ET Q q 0 0 0 rg BT 307.64 204.75 Td (e are subject to char) Tj ET Q q 0 0 0 rg BT 387.42 204.75 Td (gebacks for insurance contracts as a result ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 192.75 Td (of early termination, default, or prepayment of the contract. In addition, we participate in future profits associated with the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 180.75 Td (performance of the third-party held underlying portfolio for certain products pursuant to retrospective commission ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 168.75 Td (arrangements. ) Tj ET Q q 0 0 0 rg BT 108.18 168.75 Td (The following is a brief description of some of the vehicle protection products we of) Tj ET Q q 0 0 0 rg BT 445.68 168.75 Td (fer to our customers:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 147.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 147.75 Td (Extended service contracts ?covers certain repair work after the expiration of the manufacturer warranty;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 126.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 126.75 Td (GAP) Tj ET Q q 0 0 0 rg BT 105.13 126.75 Td ( debt cancellation ?covers the customer after a total loss for the dif) Tj ET Q q 0 0 0 rg BT 374.02 126.75 Td (ference between the value of the vehicle and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 114.75 Td (the outstanding loan or lease obligation after insurance proceeds;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 93.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 93.75 Td (Prepaid maintenance ?covers certain routine maintenance work, such as oil changes, cleaning and adjusting of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 81.75 Td (brakes, multi-point vehicle inspections, and tire rotations; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 60.75 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 60.75 Td (Credit life and disability ?covers the remaining amounts due on an auto loan or a lease in the event of death or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 48.75 Td (disability) Tj ET Q q 0 0 0 rg BT 122.07 48.75 Td (.) Tj ET Q endstream endobj 21 0 obj <>] /Rotate 0 /Contents 22 0 R>> endobj 22 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 771.18505859375 m 125.1953125 771.18505859375 l s q 0 0 1 rg BT 50.00 772.75 Td (T) Tj ET Q q 0 0 1 rg BT 55.75 772.75 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 29.10 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 744.75 Td (Recent Developments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 723.75 Td (In January 2018, we acquired the assets of one franchise \(one dealership location\) in the Indianapolis, Indiana market.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 702.75 Td (Business Strategy) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 63.00 681.75 Td (W) Tj ET Q q 0 0 0 rg BT 71.64 681.75 Td (e seek to create long-term value for our stockholders by striving to drive operational excellence and deploy capital to its ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 669.75 Td (highest returns. ) Tj ET Q q 0 0 0 rg BT 113.47 669.75 Td (T) Tj ET Q q 0 0 0 rg BT 118.88 669.75 Td (o achieve these objectives, we employ the strategies described below) Tj ET Q q 0 0 0 rg BT 394.25 669.75 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 648.75 Td (Drive Operational Excellence) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 627.75 Td (Attract and r) Tj ET Q q 0 0 0 rg BT 100.79 627.75 Td (etain the best talent) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 606.75 Td (W) Tj ET Q q 0 0 0 rg BT 73.14 606.75 Td (e believe that local management of dealership operations enables our retail network to provide market specific responses ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 594.75 Td (to sales, customer service, and inventory requirements. ) Tj ET Q q 0 0 0 rg BT 271.47 594.75 Td (The general manager of each of our dealerships is responsible for the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 582.75 Td (operations, personnel, and financial performance of that dealership as well as other day-to-day operations. ) Tj ET Q q 0 0 0 rg BT 476.11 582.75 Td (W) Tj ET Q q 0 0 0 rg BT 484.74 582.75 Td (e believe our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 570.75 Td (general managers' familiarity with their respective markets enables them to ef) Tj ET Q q 0 0 0 rg BT 359.89 570.75 Td (fectively run day-to-day operations, market to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 558.75 Td (customers, and recruit new employees. ) Tj ET Q q 0 0 0 rg BT 207.32 558.75 Td (The general manager of each dealership is supported, in most cases, by a new vehicle ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 546.75 Td (sales manager) Tj ET Q q 0 0 0 rg BT 105.46 546.75 Td (, a used vehicle sales manager) Tj ET Q q 0 0 0 rg BT 225.56 546.75 Td (, an F&I manager) Tj ET Q q 0 0 0 rg BT 295.70 546.75 Td (, a parts manager) Tj ET Q q 0 0 0 rg BT 363.60 546.75 Td (, and a service manager) Tj ET Q q 0 0 0 rg BT 457.16 546.75 Td (. Our dealership ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 534.75 Td (management teams typically have many years of experience in the automotive retail industry) Tj ET Q q 0 0 0 rg BT 420.38 534.75 Td (. ) Tj ET Q q 0 0 0 rg BT 425.20 534.75 Td (This management structure is ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 522.75 Td (complemented by support from our market-based management teams and the corporate of) Tj ET Q q 0 0 0 rg BT 409.47 522.75 Td (fice, which we refer to as the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 510.75 Td (Dealership Support Center \("DSC"\), through our advanced technology solutions, centralized processes, marketing support, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 498.75 Td (financial oversight.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 477.75 Td (Implement best practices and impr) Tj ET Q q 0 0 0 rg BT 187.99 477.75 Td (ove pr) Tj ET Q q 0 0 0 rg BT 212.89 477.75 Td (oductivity) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 456.75 Td (While new vehicle sales are critical to drawing customers to our dealerships, used vehicles, parts and service, and F&I sales ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 444.75 Td (generally provide higher profit mar) Tj ET Q q 0 0 0 rg BT 190.38 444.75 Td (gins and account for the majority of our gross profit. In order to maximize the growth of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 432.75 Td (these higher mar) Tj ET Q q 0 0 0 rg BT 115.96 432.75 Td (gin businesses, we have discipline-specific executives who focus on increasing the penetration of current ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 420.75 Td (services and expanding the breadth of our of) Tj ET Q q 0 0 0 rg BT 227.31 420.75 Td (ferings to customers through the implementation of best practices and continuous ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 408.75 Td (training on our technology solutions throughout our dealership network. In addition, we have marketing initiatives designed to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 396.75 Td (attract customers to our online channels and mobile applications.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 375.75 Td (In order to mitigate the impact of significant fluctuations in vehicle sales, we tie management and employee compensation ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 363.75 Td (at various operational levels to performance through incentive-based pay systems based on various metrics. ) Tj ET Q q 0 0 0 rg BT 481.69 363.75 Td (W) Tj ET Q q 0 0 0 rg BT 490.33 363.75 Td (e compensate our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 351.75 Td (general managers, department managers, and sales and other dealership personnel with incentive-based pay) Tj ET Q q 0 0 0 rg BT 478.68 351.75 Td (, using metrics such ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 339.75 Td (as dealership profitability) Tj ET Q q 0 0 0 rg BT 151.04 339.75 Td (, departmental profitability) Tj ET Q q 0 0 0 rg BT 257.86 339.75 Td (, customer satisfaction and individual performance, as appropriate. In ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 327.75 Td (addition, a portion of management's compensation is variable based in nature, including an annual cash bonus based on ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 315.75 Td (achieving certain earnings before interest, taxes, depreciation and amortization \("EBITDA"\) tar) Tj ET Q q 0 0 0 rg BT 431.21 315.75 Td (gets and a component of equity ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 303.75 Td (compensation tied to our financial performance in comparison to our peer group. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 282.75 Td (Pr) Tj ET Q q 0 0 0 rg BT 59.13 282.75 Td (ovide an exceptional customer experience) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 261.75 Td (W) Tj ET Q q 0 0 0 rg BT 73.14 261.75 Td (e are focused on providing a high level of customer service and have designed our dealerships' services to meet the needs ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 249.75 Td (of an increasingly sophisticated and demanding automotive consumer) Tj ET Q q 0 0 0 rg BT 328.04 249.75 Td (. ) Tj ET Q q 0 0 0 rg BT 332.86 249.75 Td (W) Tj ET Q q 0 0 0 rg BT 341.50 249.75 Td (e endeavor to establish relationships which we believe ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 237.75 Td (will result in both repeat business and additional business through customer referrals. Furthermore, we provide our dealership ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 225.75 Td (managers with appropriate incentives to employ ef) Tj ET Q q 0 0 0 rg BT 252.03 225.75 Td (ficient selling approaches, engage in extensive follow-up to develop long-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 213.75 Td (term relationships with customers, and extensively train our sales staf) Tj ET Q q 0 0 0 rg BT 327.59 213.75 Td (f to meet customer needs. ) Tj ET Q q 0 0 0 rg BT 432.37 213.75 Td (W) Tj ET Q q 0 0 0 rg BT 441.01 213.75 Td (e continually evaluate ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 201.75 Td (opportunities, and implement appropriate new technologies, to improve the buying experience for our customers, and believe ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 189.75 Td (that our ability to share best practices across our multi-jurisdictional platform gives us an advantage over independent ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 177.75 Td (dealerships. For example, we have implemented a common customer relations management tool in all of our dealerships to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 165.75 Td (facilitate communications with customers before, during, and after the sale. ) Tj ET Q q 0 0 0 rg BT 353.38 165.75 Td (W) Tj ET Q q 0 0 0 rg BT 362.02 165.75 Td (e continue to invest in technologies designed to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 153.75 Td (improve our sales process and employee productivity) Tj ET Q q 0 0 0 rg BT 262.13 153.75 Td (, all with the goal of improving the customer experience. In addition, our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 141.75 Td (higher mar) Tj ET Q q 0 0 0 rg BT 92.91 141.75 Td (gin parts and service operations are an integral part of our overall approach to customer service, providing an ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 129.75 Td (opportunity to foster ongoing relationships and improve customer loyalty) Tj ET Q q 0 0 0 rg BT 342.14 129.75 Td (. ) Tj ET Q q 0 0 0 rg BT 346.96 129.75 Td (W) Tj ET Q q 0 0 0 rg BT 355.59 129.75 Td (e continue to train our technicians and service ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 117.75 Td (advisors on processes and technologies to both educate our customers on their service needs and ensure that our customers ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 105.75 Td (continue to receive excellent service. ) Tj ET Q q 0 0 0 rg BT 199.80 105.75 Td (W) Tj ET Q q 0 0 0 rg BT 208.44 105.75 Td (e believe our parts and service business provides us with an opportunity for future ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 93.75 Td (growth due to improved customer retention, the added technical complexity of vehicles and the increasing number of vehicles ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 81.75 Td (on the road.) Tj ET Q endstream endobj 23 0 obj <>] /Rotate 0 /Contents 24 0 R>> endobj 24 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 771.18505859375 m 125.1953125 771.18505859375 l s q 0 0 1 rg BT 50.00 772.75 Td (T) Tj ET Q q 0 0 1 rg BT 55.75 772.75 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.15 29.10 Td (1) Tj ET Q q 0 0 0 rg BT 305.78 29.10 Td (1) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 744.60 Td (Centralize, str) Tj ET Q q 0 0 0 rg BT 106.36 744.60 Td (eamline, and automate pr) Tj ET Q q 0 0 0 rg BT 208.75 744.60 Td (ocesses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 63.00 723.60 Td (Our DSC management is responsible for our capital expenditures and determining our operating strategy) Tj ET Q q 0 0 0 rg BT 481.40 723.60 Td (, while the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 711.60 Td (implementation of our operating strategy rests with our market-based management teams and each dealership management ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 699.60 Td (team based on the policies and procedures established by DSC management. DSC management and our market-based ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 687.60 Td (management teams continually evaluate the financial and operating results of our dealerships, as well as each dealership's ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 675.60 Td (geographical location, and from time to time, make decisions to evaluate new technologies and/or processes to further enhance ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 663.60 Td (our operational performance. ) Tj ET Q q 0 0 0 rg BT 167.78 663.60 Td (As part of our investment in our information technology \("IT"\) systems, we have deployed a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 651.60 Td (common dealer management system \("DMS"\). ) Tj ET Q q 0 0 0 rg BT 239.10 651.60 Td (W) Tj ET Q q 0 0 0 rg BT 247.74 651.60 Td (e believe a single DMS provides the foundation for future ef) Tj ET Q q 0 0 0 rg BT 489.16 651.60 Td (ficiencies and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 639.60 Td (creates a more ef) Tj ET Q q 0 0 0 rg BT 117.33 639.60 Td (ficient retail operation. ) Tj ET Q q 0 0 0 rg BT 210.99 639.60 Td (W) Tj ET Q q 0 0 0 rg BT 219.63 639.60 Td (e consolidate financial, accounting, and operational data received from our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 627.60 Td (dealerships through customized financial products. Our IT) Tj ET Q q 0 0 0 rg BT 282.86 627.60 Td ( approach enables us to ef) Tj ET Q q 0 0 0 rg BT 386.25 627.60 Td (ficiently integrate and aggregate ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 615.60 Td (information from our dealerships. ) Tj ET Q q 0 0 0 rg BT 186.79 615.60 Td (Through the combination of a common DMS and our corporate IT) Tj ET Q q 0 0 0 rg BT 452.65 615.60 Td ( products, management has ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 603.60 Td (access to the financial, accounting, and operational data at various levels of the or) Tj ET Q q 0 0 0 rg BT 376.14 603.60 Td (ganization. In addition, we are in the process ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 591.60 Td (of centralizing business processes throughout our or) Tj ET Q q 0 0 0 rg BT 257.61 591.60 Td (ganization which we expect will deliver future cost syner) Tj ET Q q 0 0 0 rg BT 486.23 591.60 Td (gies and enhanced ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 579.60 Td (performance.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 558.60 Td (Leverage our scale and cost structur) Tj ET Q q 0 0 0 rg BT 196.05 558.60 Td (e to impr) Tj ET Q q 0 0 0 rg BT 231.79 558.60 Td (ove our operating efficiencies) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 63.00 537.60 Td (W) Tj ET Q q 0 0 0 rg BT 71.64 537.60 Td (e are positioned to leverage our significant scale so that we are able to achieve competitive operating mar) Tj ET Q q 0 0 0 rg BT 492.67 537.60 Td (gins by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 525.60 Td (centralizing and streamlining various back-of) Tj ET Q q 0 0 0 rg BT 230.92 525.60 Td (fice functions. ) Tj ET Q q 0 0 0 rg BT 290.44 525.60 Td (W) Tj ET Q q 0 0 0 rg BT 299.08 525.60 Td (e are able to improve financial controls and lower servicing costs ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 513.60 Td (by maintaining key store-level accounting and administrative activities in our shared service centers, and we leverage our scale ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 501.60 Td (to reduce costs related to purchasing certain equipment, supplies, and services through national vendor relationships.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 480.60 Td (Deploy Capital to Highest Returns) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 63.00 459.60 Td (W) Tj ET Q q 0 0 0 rg BT 71.64 459.60 Td (e continually evaluate our investment opportunities based upon: \(i\) our cash and cash equivalents on hand, \(ii\) the funds ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 447.60 Td (that we expect to generate through future operations, \(iii\) current and expected borrowing availability under our credit facilities ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 435.60 Td (and mortgage financings, \(iv\) amounts in our new vehicle floor plan notes payable of) Tj ET Q q 0 0 0 rg BT 390.33 435.60 Td (fset accounts, and \(v\) the potential impact ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 423.60 Td (of any contemplated or pending future transactions, including, but not limited to, financings, acquisitions, dispositions or other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 411.60 Td (capital expenditures.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 390.60 Td (Seek opportunities to further invest in our business; acquir) Tj ET Q q 0 0 0 rg BT 284.66 390.60 Td (e r) Tj ET Q q 0 0 0 rg BT 295.12 390.60 Td (eal estate curr) Tj ET Q q 0 0 0 rg BT 352.51 390.60 Td (ently being operated under lease agr) Tj ET Q q 0 0 0 rg BT 499.61 390.60 Td (eements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 63.00 369.60 Td (W) Tj ET Q q 0 0 0 rg BT 71.64 369.60 Td (e continually evaluate our existing dealership network and seek to make strategic investments which will increase the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 357.60 Td (capacity of our dealerships and improve the customer experience. In addition, we continue to execute on our strategy of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 345.60 Td (selectively acquiring our leased properties where financing rates make it attractive to be an owner) Tj ET Q q 0 0 0 rg BT 439.90 345.60 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 324.60 Td (Evaluate opportunities to r) Tj ET Q q 0 0 0 rg BT 157.18 324.60 Td (efine our dealership portfolio, including acquiring value added operating assets and dealerships) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 63.00 303.60 Td (W) Tj ET Q q 0 0 0 rg BT 71.64 303.60 Td (e evaluate dealership acquisition opportunities based on market position and geography) Tj ET Q q 0 0 0 rg BT 420.89 303.60 Td (, brand representation and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 291.60 Td (availability) Tj ET Q q 0 0 0 rg BT 93.84 291.60 Td (, key personnel, and other factors. ) Tj ET Q q 0 0 0 rg BT 231.66 291.60 Td (W) Tj ET Q q 0 0 0 rg BT 240.30 291.60 Td (e believe our financial position, IT) Tj ET Q q 0 0 0 rg BT 378.41 291.60 Td ( systems, management structure, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 279.60 Td (experience, position us to ef) Tj ET Q q 0 0 0 rg BT 161.79 279.60 Td (ficiently and opportunistically complete, integrate, and benefit from dealership acquisitions. ) Tj ET Q q 0 0 0 rg BT 531.77 279.60 Td (W) Tj ET Q q 0 0 0 rg BT 540.41 279.60 Td (e ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 267.60 Td (also evaluate the financial and operating results of our owned dealerships, as well as each dealership's geographical location, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 255.60 Td (and based on various financial and strategic rationales, may make decisions to dispose of dealerships to refine our dealership ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 243.60 Td (portfolio. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 222.60 Td (Return capital to stockholders thr) Tj ET Q q 0 0 0 rg BT 184.11 222.60 Td (ough shar) Tj ET Q q 0 0 0 rg BT 224.03 222.60 Td (e r) Tj ET Q q 0 0 0 rg BT 234.49 222.60 Td (epur) Tj ET Q q 0 0 0 rg BT 252.44 222.60 Td (chase pr) Tj ET Q q 0 0 0 rg BT 286.23 222.60 Td (ograms and/or dividends) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 63.00 201.60 Td (Our capital allocation decisions are primarily based on our desire to maintain suf) Tj ET Q q 0 0 0 rg BT 386.05 201.60 Td (ficient liquidity and a prudent capital ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 189.60 Td (structure. ) Tj ET Q q 0 0 0 rg BT 89.30 189.60 Td (W) Tj ET Q q 0 0 0 rg BT 97.94 189.60 Td (e believe our cash position and borrowing capacity) Tj ET Q q 0 0 0 rg BT 300.84 189.60 Td (, combined with our current and expected future cash generation ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 177.60 Td (capability) Tj ET Q q 0 0 0 rg BT 88.28 177.60 Td (, provides us with significant financial flexibility to enhance shareholder value through the repurchase of our common ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 165.60 Td (stock and/or dividends. Our share repurchase decisions are based on many factors, including a comparison of the market price ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 153.60 Td (of our common stock versus our view of its intrinsic value.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 132.60 Td (Competition) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 111.60 Td (The automotive retail and service industry is highly competitive with respect to price, service, location, and selection. For ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 99.60 Td (new vehicle sales, our dealerships compete with other franchised dealerships, primarily in their regions. Our new vehicle store ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 87.60 Td (competitors also have franchise agreements with the various vehicle manufacturers, and as such, generally obtain new vehicle ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 75.60 Td (inventory from vehicle manufacturers on the same terms as us. ) Tj ET Q q 0 0 0 rg BT 302.85 75.60 Td (The franchise agreements grant the franchised dealership a non-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 63.60 Td (exclusive right to sell the manufacturer's \(or distributor's\) brand of vehicles and of) Tj ET Q q 0 0 0 rg BT 377.83 63.60 Td (fer related parts and service within a specified ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 51.60 Td (market area. State automotive franchise laws restrict competitors from relocating their stores or establishing new stores of a ) Tj ET Q endstream endobj 25 0 obj <>] /Rotate 0 /Contents 26 0 R>> endobj 26 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 771.18505859375 m 125.1953125 771.18505859375 l s q 0 0 1 rg BT 50.00 772.75 Td (T) Tj ET Q q 0 0 1 rg BT 55.75 772.75 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 29.10 Td (12) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 744.60 Td (particular vehicle brand within a specified area that is served by our dealership of the same vehicle brand. ) Tj ET Q q 0 0 0 rg BT 474.43 744.60 Td (W) Tj ET Q q 0 0 0 rg BT 483.06 744.60 Td (e rely on our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 732.60 Td (advertising and merchandising, sales expertise, service reputation, strong local branding, and location of our dealerships to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 720.60 Td (assist in the sale of new vehicles.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 699.60 Td (Our used vehicle operations compete with other franchised dealerships, non-franchised automotive dealerships, regional and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 687.60 Td (national vehicle rental companies, and Internet-based vehicle brokers for the supply and resale of used vehicles.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 666.60 Td (W) Tj ET Q q 0 0 0 rg BT 73.14 666.60 Td (e compete with other franchised dealerships to perform warranty and recall-related repairs and with other franchised ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 654.60 Td (dealerships and independent service centers for non-warranty repair and maintenance services. ) Tj ET Q q 0 0 0 rg BT 430.26 654.60 Td (W) Tj ET Q q 0 0 0 rg BT 438.90 654.60 Td (e compete with other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 642.60 Td (automobile dealers, service stores, and auto parts retailers in our parts operations. ) Tj ET Q q 0 0 0 rg BT 377.27 642.60 Td (W) Tj ET Q q 0 0 0 rg BT 385.91 642.60 Td (e believe that we have a competitive ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 630.60 Td (advantage in parts and service sales due to our ability to use factory-approved replacement parts, our competitive prices, our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 618.60 Td (familiarity with manufacturer brands and models, and the quality of our customer service. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 597.60 Td (W) Tj ET Q q 0 0 0 rg BT 73.14 597.60 Td (e compete with a broad range of financial institutions in arranging financing for our customers vehicle purchases. In ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 585.60 Td (addition, many financial institutions are now of) Tj ET Q q 0 0 0 rg BT 239.00 585.60 Td (fering F&I products through the Internet, which has increased competition and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 573.60 Td (may reduce our profits on certain of these items. ) Tj ET Q q 0 0 0 rg BT 245.36 573.60 Td (W) Tj ET Q q 0 0 0 rg BT 254.00 573.60 Td (e believe that the principal competitive factors in providing financing are ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 561.60 Td (convenience, interest rates, and flexibility in contract length.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 540.60 Td (Seasonality) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 519.60 Td (The automobile industry has historically been subject to seasonal variations. Demand for new vehicles is generally highest ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 507.60 Td (during the second, third, and fourth quarters of each year and, accordingly) Tj ET Q q 0 0 0 rg BT 345.41 507.60 Td (, we expect our revenues and operating results to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 495.60 Td (generally be higher during these periods. In addition, we typically experience higher sales of luxury vehicles in the fourth ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 483.60 Td (quarter) Tj ET Q q 0 0 0 rg BT 77.42 483.60 Td (, which have higher average selling prices and gross profit per vehicle retailed. Revenues and operating results may be ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 471.60 Td (impacted significantly from quarter to quarter by changing economic conditions, vehicle manufacturer incentive programs, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 459.60 Td (adverse weather events.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 438.60 Td (Dealer) Tj ET Q q 0 0 0 rg BT 77.63 438.60 Td ( and Framework ) Tj ET Q q 0 0 0 rg BT 151.24 438.60 Td (Agr) Tj ET Q q 0 0 0 rg BT 167.72 438.60 Td (eements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 417.60 Td (Each of our dealerships operate pursuant to a dealer agreement between the dealership and the manufacturer \(or in some ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 405.60 Td (cases the distributor\) of each brand of new vehicles sold and/or serviced at the dealership. ) Tj ET Q q 0 0 0 rg BT 410.86 405.60 Td (The dealer agreements grant the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 393.60 Td (franchised dealership a non-exclusive right to sell the manufacturer's \(or distributor's\) brand of vehicles and of) Tj ET Q q 0 0 0 rg BT 490.83 393.60 Td (fer related parts ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 381.60 Td (and service within a specified market area. Each dealer agreement also grants our dealerships the right to use the manufacturer's ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 369.60 Td (trademarks and service marks in connection with the dealerships operations and they also impose numerous operational ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 357.60 Td (requirements related to, among other things, the following:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 336.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 336.60 Td (inventories of new vehicles and manufacturer replacement parts;) Tj ET Q BT /F2 5.00 Tf ET q 0 0 0 rg BT 344.00 336.60 Td (? Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 315.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 315.60 Td (maintenance of minimum net working capital requirements, and in some cases, minimum net worth requirements;) Tj ET Q BT /F2 5.00 Tf ET q 0 0 0 rg BT 541.49 315.60 Td (? Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 294.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 294.60 Td (achievement of certain sales and customer satisfaction tar) Tj ET Q q 0 0 0 rg BT 315.50 294.60 Td (gets;) Tj ET Q BT /F2 5.00 Tf ET q 0 0 0 rg BT 334.39 294.60 Td (? Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 273.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 273.60 Td (advertising and marketing practices;) Tj ET Q BT /F2 5.00 Tf ET q 0 0 0 rg BT 230.72 273.60 Td (? Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 252.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 252.60 Td (facilities and signs;) Tj ET Q BT /F2 5.00 Tf ET q 0 0 0 rg BT 162.71 252.60 Td (? Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 231.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 231.60 Td (products of) Tj ET Q q 0 0 0 rg BT 130.59 231.60 Td (fered to customers; ) Tj ET Q BT /F2 5.00 Tf ET q 0 0 0 rg BT 209.73 231.60 Td (? Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 210.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 210.60 Td (dealership management;) Tj ET Q BT /F2 5.00 Tf ET q 0 0 0 rg BT 182.96 210.60 Td (? Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 189.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 189.60 Td (personnel training;) Tj ET Q BT /F2 5.00 Tf ET q 0 0 0 rg BT 160.76 189.60 Td (? Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 168.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 168.60 Td (information systems;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 147.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 147.60 Td (geographic market, including but not limited to requirements to meet sales and service tar) Tj ET Q q 0 0 0 rg BT 444.10 147.60 Td (gets within an assigned ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 135.60 Td (market area, geographic limitations on where the dealership may locate or advertise, and restrictions on the export of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 123.60 Td (vehicles; and) Tj ET Q BT /F2 5.00 Tf ET q 0 0 0 rg BT 137.98 123.60 Td (? Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 102.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 102.60 Td (dealership monthly and annual financial reporting.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 81.60 Td (Our dealer agreements are for various terms, ranging from one year to indefinite. ) Tj ET Q q 0 0 0 rg BT 390.58 81.60 Td (W) Tj ET Q q 0 0 0 rg BT 399.22 81.60 Td (e expect that we will be able to renew ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 69.60 Td (expiring agreements in the ordinary course of business. However) Tj ET Q q 0 0 0 rg BT 309.30 69.60 Td (, typical dealer agreements give the manufacturer the right to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 57.60 Td (terminate or the option of non-renewal of the dealer agreement under certain circumstances, subject to applicable state franchise ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 45.60 Td (laws, including:) Tj ET Q endstream endobj 27 0 obj <>] /Rotate 0 /Contents 28 0 R>> endobj 28 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 771.18505859375 m 125.1953125 771.18505859375 l s q 0 0 1 rg BT 50.00 772.75 Td (T) Tj ET Q q 0 0 1 rg BT 55.75 772.75 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 29.10 Td (13) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 744.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 744.60 Td (insolvency or bankruptcy of the dealership;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 723.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 723.60 Td (failure to adequately operate the dealership or to maintain required capitalization levels;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 702.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 702.60 Td (impairment of the reputation or financial condition of the dealership;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 681.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 681.60 Td (change of ownership or management of the dealership without manufacturer consent;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 660.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 660.60 Td (certain extraordinary corporate transactions such as a mer) Tj ET Q q 0 0 0 rg BT 316.05 660.60 Td (ger or sale of all or substantially all of our assets without ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 648.60 Td (manufacturer consent;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 627.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 627.60 Td (failure to complete facility upgrades required by the manufacturer or agreed to by the dealer;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 606.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 606.60 Td (failure to maintain any license, permits or authorization required to conduct the dealership's business;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 585.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 585.60 Td (conviction of a dealer/manager or owner for certain crimes; or) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 564.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 564.60 Td (material breach of other provisions of a dealer agreement.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 543.60 Td (Notwithstanding the terms of any dealer agreement, the states in which we operate have automotive dealership franchise ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 531.60 Td (laws that provide that it is unlawful for a manufacturer to terminate or not renew a franchise unless "good cause" exists. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 510.60 Td (In addition to requirements under dealer agreements, we are subject to provisions contained in supplemental agreements, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 498.60 Td (framework agreements, dealer addenda and manufacturers' policies, collectively referred to as "framework agreements." ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 486.60 Td (Framework agreements impose requirements on us in addition to those described above. Such agreements also define other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 474.60 Td (standards and limitations, including:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 453.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 453.60 Td (company-wide performance criteria;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 432.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 432.60 Td (capitalization requirements;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 411.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 411.60 Td (limitations on changes in our ownership or management;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 390.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 390.60 Td (limitations on the number of a particular manufacturer's franchises owned by us;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 369.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 369.60 Td (restrictions or prohibitions on our ability to pledge the stock of certain of our subsidiaries; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 348.60 Td (?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 348.60 Td (conditions for consent to proposed acquisitions, including sales and customer satisfaction criteria, as well as ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 336.60 Td (limitations on the total local, regional, and national market share percentage that would be represented by a particular ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 324.60 Td (manufacturer's franchises owned by us after giving ef) Tj ET Q q 0 0 0 rg BT 299.54 324.60 Td (fect to a proposed acquisition.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 303.60 Td (Some dealer agreements and framework agreements grant the manufacturer the right to terminate or not renew our dealer ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 291.60 Td (and framework agreements, or to compel us to divest our dealerships, for a number of reasons, including default under the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 279.60 Td (agreement, any unapproved change of control \(which specific changes vary from manufacturer to manufacturer) Tj ET Q q 0 0 0 rg BT 495.01 279.60 Td (, but which ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 267.60 Td (include material changes in the composition of our Board of Directors during a specified time period, the acquisition of 5% or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 255.60 Td (more of our voting stock by another vehicle manufacturer or distributor) Tj ET Q q 0 0 0 rg BT 335.13 255.60 Td (, the acquisition of 20% or more of our voting stock by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 243.60 Td (third parties, and the acquisition of an ownership interest suf) Tj ET Q q 0 0 0 rg BT 291.48 243.60 Td (ficient to direct or influence management and policies\), or certain ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 231.60 Td (other unapproved events \(including certain extraordinary corporate transactions such as a mer) Tj ET Q q 0 0 0 rg BT 424.45 231.60 Td (ger or sale of all or substantially ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 219.60 Td (all of our assets\). ) Tj ET Q q 0 0 0 rg BT 120.13 219.60 Td (T) Tj ET Q q 0 0 0 rg BT 125.89 219.60 Td (riggers of the clauses are often based upon actions by our stockholders and are generally outside of our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 207.60 Td (control. Some of our dealer agreements and framework agreements also give the manufacturer a right of first refusal if we ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 195.60 Td (propose to sell any dealership representing the manufacturer's brands to a third-party) Tj ET Q q 0 0 0 rg BT 387.48 195.60 Td (. ) Tj ET Q q 0 0 0 rg BT 392.30 195.60 Td (These agreements may also attempt to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 183.60 Td (limit the protections available under applicable state laws and require us to resolve disputes through binding arbitration. For ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 171.60 Td (additional information, please refer to the risk factor captioned "W) Tj ET Q q 0 0 0 rg BT 315.46 171.60 Td (e are dependent upon our relationships with the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 159.60 Td (manufacturers of vehicles that we sell and are subject to restrictions imposed by) Tj ET Q q 0 0 0 rg BT 368.75 159.60 Td (, and significant influence from, these vehicle ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 147.60 Td (manufacturers. ) Tj ET Q q 0 0 0 rg BT 111.14 147.60 Td (Any of these restrictions or any changes or deterioration of these relationships could have a material adverse ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 135.60 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 135.60 Td (fect on our business, financial condition, results of operations, and cash flows.") Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 63.00 114.60 Td (Our framework agreements with certain manufacturers contain provisions that, among other things, attempt to limit the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 102.60 Td (protections available to dealers under these laws. If these laws are repealed in the states in which we operate, manufacturers ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 90.60 Td (may be able to terminate our franchises without providing advance notice, an opportunity to cure or a showing of good cause. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 78.60 Td (W) Tj ET Q q 0 0 0 rg BT 58.54 78.60 Td (ithout the protection of these laws, it may also be more dif) Tj ET Q q 0 0 0 rg BT 291.63 78.60 Td (ficult for us to renew our dealer agreements upon expiration. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 63.00 57.60 Td (Changes in laws that provide manufacturers the ability to terminate our dealer agreements could materially adversely af) Tj ET Q q 0 0 0 rg BT 541.53 57.60 Td (fect ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 45.60 Td (our business, financial condition and results of operations. Furthermore, if a manufacturer seeks protection from creditors in ) Tj ET Q endstream endobj 29 0 obj <>] /Rotate 0 /Contents 30 0 R>> endobj 30 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 771.18505859375 m 125.1953125 771.18505859375 l s q 0 0 1 rg BT 50.00 772.75 Td (T) Tj ET Q q 0 0 1 rg BT 55.75 772.75 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 29.10 Td (14) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 744.60 Td (bankruptcy) Tj ET Q q 0 0 0 rg BT 93.84 744.60 Td (, courts have held that the federal bankruptcy laws may supersede these laws, resulting in either the termination, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 732.60 Td (non-renewal or rejection of franchises by such manufacturers, which, in turn, could materially adversely af) Tj ET Q q 0 0 0 rg BT 476.66 732.60 Td (fect our business, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 720.60 Td (financial condition, and results of operations. For additional information, please refer to the risk factor captioned "If state laws ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 708.60 Td (that protect automotive retailers are repealed, weakened, or superseded by our framework agreements with manufacturers, our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (dealerships will be more susceptible to termination, non-renewal or renegotiation of their dealer agreements which could have a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (materially adverse ef) Tj ET Q q 0 0 0 rg BT 133.16 684.60 Td (fect on our business, financial condition, and results of operations." ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 663.60 Td (Regulations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 642.60 Td (W) Tj ET Q q 0 0 0 rg BT 73.14 642.60 Td (e operate in a highly regulated industry) Tj ET Q q 0 0 0 rg BT 229.10 642.60 Td (. In every state in which we operate, we must obtain one or more licenses issued by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 630.60 Td (state regulatory authorities in order to operate our business. In addition, we are subject to numerous complex federal, state, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 618.60 Td (local laws regulating the conduct of our business, including those relating to our sales, operations, finance and insurance, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 606.60 Td (advertising, and employment practices. ) Tj ET Q q 0 0 0 rg BT 208.71 606.60 Td (These laws and regulations include state franchise laws and regulations, consumer ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 594.60 Td (protection laws, privacy laws, anti-money laundering laws, and other extensive laws and regulations applicable to new and used ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 582.60 Td (motor vehicle dealers. ) Tj ET Q q 0 0 0 rg BT 140.39 582.60 Td (These laws also include federal and state wage and hour) Tj ET Q q 0 0 0 rg BT 364.63 582.60 Td (, anti-discrimination, and other laws governing ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 570.60 Td (employment practices.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 549.60 Td (Our financing activities with customers are subject to federal truth-in-lending, consumer leasing, and equal credit ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 537.60 Td (opportunity laws and regulations, as well as state and local motor vehicle finance laws, leasing laws, installment finance laws, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 525.60 Td (usury laws, and other installment state and leasing laws and regulations. Some U.S. states regulate fees and char) Tj ET Q q 0 0 0 rg BT 497.81 525.60 Td (ges that may be ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 513.60 Td (paid as a result of vehicle sales. Claims arising out of actual or alleged violations of law may be asserted against us or our stores ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 501.60 Td (by individuals or governmental entities and may expose us to significant damages, fines or other penalties, including revocation ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 489.60 Td (or suspension of our license to conduct store operations. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 63.00 468.60 Td (In July 2010, the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 183.92 468.60 Td (W) Tj ET Q q 0 0 0 rg BT 192.56 468.60 Td (all Street Reform and Consumer Protection ) Tj ET Q q 0 0 0 rg BT 367.52 468.60 Td (Act was signed into law and established the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 456.60 Td (Consumer Financial Protection Bureau \("CFPB"\) with broad regulatory powers. ) Tj ET Q q 0 0 0 rg BT 372.06 456.60 Td (Although automotive dealers are generally ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 444.60 Td (excluded from the CFPB's regulatory authority) Tj ET Q q 0 0 0 rg BT 236.45 444.60 Td (, the CFPB has announced its intention to regulate automotive financing ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 432.60 Td (activities through its regulation of automotive finance companies and other financial institutions that service the automotive ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 420.60 Td (industry) Tj ET Q q 0 0 0 rg BT 81.63 420.60 Td (. ) Tj ET Q q 0 0 0 rg BT 86.45 420.60 Td (The CFPB has issued regulatory guidance instructing financial institutions to monitor dealer lending practices for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 408.60 Td (potential discrimination, resulting from the system used to compensate dealers for assisting in the customer financing ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 396.60 Td (transaction. ) Tj ET Q q 0 0 0 rg BT 98.19 396.60 Td (The CFPB has instructed lenders that, if discrimination is found, the lender would be required to change dealer ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 384.60 Td (compensation practices. In addition, the CFPB has announced its intention to regulate the sale of other finance and insurance ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 372.60 Td (products. ) Tj ET Q q 0 0 0 rg BT 88.76 372.60 Td (The Federal ) Tj ET Q q 0 0 0 rg BT 139.11 372.60 Td (T) Tj ET Q q 0 0 0 rg BT 144.87 372.60 Td (rade Commission has certain regulatory authority over automotive dealers and has implemented an ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 360.60 Td (enforcement initiative relating to the advertising practices of automotive dealers. For additional information, please refer to the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 348.60 Td (risk factor captioned "Our operations are subject to extensive governmental laws and regulations. If we are found to be in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 336.60 Td (purported violation of or subject to liabilities under any of these laws or regulations, or if new laws or regulations are enacted ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 324.60 Td (that adversely af) Tj ET Q q 0 0 0 rg BT 115.40 324.60 Td (fect our operations, our business, our reputation, financial condition, results of operations, and prospects could ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 312.60 Td (suf) Tj ET Q q 0 0 0 rg BT 61.54 312.60 Td (fer) Tj ET Q q 0 0 0 rg BT 72.09 312.60 Td (.") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 291.60 Td (Envir) Tj ET Q q 0 0 0 rg BT 73.77 291.60 Td (onmental, Health and Safety Laws and Regulations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 270.60 Td (W) Tj ET Q q 0 0 0 rg BT 73.14 270.60 Td (e are subject to a wide range of environmental laws and regulations, including those governing dischar) Tj ET Q q 0 0 0 rg BT 483.39 270.60 Td (ges into water) Tj ET Q q 0 0 0 rg BT 539.08 270.60 Td (, air ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 258.60 Td (emissions, storage of petroleum substances and chemicals, handling and disposal of solid and hazardous wastes, remediation of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 246.60 Td (various types of contamination, and otherwise relating to health, safety and protection of the environment. For example and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 234.60 Td (without creating an exhaustive list: as with automobile dealerships generally) Tj ET Q q 0 0 0 rg BT 354.60 234.60 Td (, and service and parts and collision repair center ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 222.60 Td (operations in particular) Tj ET Q q 0 0 0 rg BT 141.84 222.60 Td (, our business involves the generation, use, handling, and disposal of hazardous or toxic substances and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 210.60 Td (wastes and the use of above ground and under) Tj ET Q q 0 0 0 rg BT 233.71 210.60 Td (ground storage tanks \(AST) Tj ET Q q 0 0 0 rg BT 341.05 210.60 Td (s and UST) Tj ET Q q 0 0 0 rg BT 382.57 210.60 Td (s\). Operations involving the management of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 198.60 Td (wastes and the use of ) Tj ET Q q 0 0 0 rg BT 136.42 198.60 Td (AST) Tj ET Q q 0 0 0 rg BT 154.62 198.60 Td (s and UST) Tj ET Q q 0 0 0 rg BT 196.14 198.60 Td (s are subject to requirements of the Resource Conservation and Recovery ) Tj ET Q q 0 0 0 rg BT 491.33 198.60 Td (Act, analogous ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 186.60 Td (state statutes, and their implementing regulations. Pursuant to these laws, federal and state environmental agencies have ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 174.60 Td (established approved methods for handling, storing, treating, transporting, and disposing of regulated substances and wastes ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 162.60 Td (with which we must comply) Tj ET Q q 0 0 0 rg BT 162.17 162.60 Td (. ) Tj ET Q q 0 0 0 rg BT 166.99 162.60 Td (W) Tj ET Q q 0 0 0 rg BT 175.63 162.60 Td (e also are subject to laws and regulations governing responses to any releases of contamination ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 150.60 Td (at or from our facilities or at facilities that receive our hazardous wastes for treatment or disposal. ) Tj ET Q q 0 0 0 rg BT 441.95 150.60 Td (The Comprehensive ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 138.60 Td (Environmental Response, Compensation and Liability ) Tj ET Q q 0 0 0 rg BT 268.36 138.60 Td (Act \("CERCLA"\) and similar state statutes, can impose strict and joint ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 126.60 Td (and several liability for cleanup costs on those that are considered to have contributed to the release of a "hazardous substance." ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 114.60 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 114.60 Td (e also are subject to the Clean ) Tj ET Q q 0 0 0 rg BT 179.86 114.60 Td (W) Tj ET Q q 0 0 0 rg BT 188.49 114.60 Td (ater ) Tj ET Q q 0 0 0 rg BT 205.43 114.60 Td (Act, analogous state statutes, and their implementing regulations which, among other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 102.60 Td (things, prohibit dischar) Tj ET Q q 0 0 0 rg BT 141.81 102.60 Td (ges of pollutants into regulated waters without permits, require containment of potential dischar) Tj ET Q q 0 0 0 rg BT 524.58 102.60 Td (ges of oil ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 90.60 Td (or hazardous substances, and require preparation of spill contingency plans. Currently) Tj ET Q q 0 0 0 rg BT 392.63 90.60 Td (, we are not aware of any non-compliance ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 78.60 Td (with these or any other environmental requirements applicable to our operations, nor are we aware of any material remedial ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 66.60 Td (liabilities to which we are subject.) Tj ET Q endstream endobj 31 0 obj <>] /Rotate 0 /Contents 32 0 R>> endobj 32 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 771.18505859375 m 125.1953125 771.18505859375 l s q 0 0 1 rg BT 50.00 772.75 Td (T) Tj ET Q q 0 0 1 rg BT 55.75 772.75 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 29.10 Td (15) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 744.60 Td (W) Tj ET Q q 0 0 0 rg BT 73.14 744.60 Td (e have incurred, and will continue to incur) Tj ET Q q 0 0 0 rg BT 242.12 744.60 Td (, costs and capital expenditures to comply with these laws and regulations and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 732.60 Td (to obtain and maintain all necessary environmental permits. ) Tj ET Q q 0 0 0 rg BT 290.64 732.60 Td (W) Tj ET Q q 0 0 0 rg BT 299.28 732.60 Td (e believe that our operations currently are being conducted in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 720.60 Td (substantial compliance with all applicable environmental laws. From time to time, we may experience incidents and encounter ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 708.60 Td (conditions that are not in compliance with environmental laws and regulations. ) Tj ET Q q 0 0 0 rg BT 367.57 708.60 Td (W) Tj ET Q q 0 0 0 rg BT 376.21 708.60 Td (e occasionally receive notices from ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (environmental agencies regarding potential violations of environmental laws or regulations. In such cases, we work with the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (agencies to address any issues and to implement appropriate corrective action when necessary) Tj ET Q q 0 0 0 rg BT 424.82 684.60 Td (. However) Tj ET Q q 0 0 0 rg BT 466.07 684.60 Td (, none of our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (dealerships have been subject to any material environmental liabilities in the past, nor do we know of any fact or condition that ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 660.60 Td (would result in any material environmental liabilities being incurred in the future.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 639.60 Td (Employees) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 618.60 Td (As of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.94 618.60 Td (December?1, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 167.53 618.60 Td (, we employed approximately 8,000 full-time and part-time employees, none of whom were ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 606.60 Td (covered by collective bar) Tj ET Q q 0 0 0 rg BT 150.10 606.60 Td (gaining agreements. ) Tj ET Q q 0 0 0 rg BT 232.95 606.60 Td (W) Tj ET Q q 0 0 0 rg BT 241.58 606.60 Td (e believe we have good relations with our employees. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 585.60 Td (Insurance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 63.00 564.60 Td (Due to the inherent risk in the automotive retail industry) Tj ET Q q 0 0 0 rg BT 287.58 564.60 Td (, our operations expose us to a variety of liabilities. ) Tj ET Q q 0 0 0 rg BT 494.57 564.60 Td (These risks ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 552.60 Td (generally require significant levels of insurance covering liabilities such as claims from employees, customers, or other third ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 540.60 Td (parties, for personal injury and property related losses occurring in the course of our operations. ) Tj ET Q q 0 0 0 rg BT 435.03 540.60 Td (W) Tj ET Q q 0 0 0 rg BT 443.67 540.60 Td (e may be subject to fines and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 528.60 Td (civil and criminal penalties in connection with alleged violations of federal and state laws or regulatory environments. Further) Tj ET Q q 0 0 0 rg BT 553.39 528.60 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 516.60 Td (the automobile retail industry is subject to substantial risk of real and personal property loss, due to the significant ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 504.60 Td (concentration of property values located at the various dealership locations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 63.00 483.60 Td (Our insurance programs include multiple umbrella policies with a total per occurrence and aggregate limit of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 471.60 Td ($100.0 million. ) Tj ET Q q 0 0 0 rg BT 113.21 471.60 Td (W) Tj ET Q q 0 0 0 rg BT 121.85 471.60 Td (e are self-insured for certain employee medical claims and maintain stop loss insurance for individual claims. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 459.60 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 459.60 Td (e have lar) Tj ET Q q 0 0 0 rg BT 96.82 459.60 Td (ge deductible insurance programs in place for workers compensation, property) Tj ET Q q 0 0 0 rg BT 410.51 459.60 Td (, and general liability claims.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 63.00 438.60 Td (Provisions for retained losses and deductibles are made by char) Tj ET Q q 0 0 0 rg BT 316.35 438.60 Td (ges to expense based upon periodic evaluations of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 426.60 Td (estimated ultimate liabilities on reported and unreported claims. ) Tj ET Q q 0 0 0 rg BT 307.30 426.60 Td (The insurance companies that underwrite our insurance require ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 414.60 Td (that we secure certain of our obligations for deductible reimbursements with collateral. Our collateral requirements are set by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 402.60 Td (the insurance companies and, to date, have been satisfied by posting surety bonds, letters of credit, and/or cash deposits. Our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 390.60 Td (collateral requirements may change from time to time based on, among other things, our claims experience.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 369.60 Td (Item 1A. Risk Factors) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 348.60 Td (In addition to the other information contained, referred to or incorporated by reference into this report, you should consider ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 336.60 Td (carefully the following factors when evaluating our business and before making an investment decision. Our business, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 324.60 Td (operations, ability to implement our strategy) Tj ET Q q 0 0 0 rg BT 226.59 324.60 Td (, reputation, results of operations, financial condition, cash flows, and prospects ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 312.60 Td (may be materially adversely af) Tj ET Q q 0 0 0 rg BT 172.60 312.60 Td (fected by the risks described below) Tj ET Q q 0 0 0 rg BT 312.73 312.60 Td (. In addition, other risks or uncertainties not presently known ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 300.60 Td (to us or that we currently do not deem material could arise, any of which could also materially adversely af) Tj ET Q q 0 0 0 rg BT 477.51 300.60 Td (fect us.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 279.60 Td (The automotive r) Tj ET Q q 0 0 0 rg BT 123.20 279.60 Td (etail industry is sensitive to unfavorable changes in general economic conditions and various other) Tj ET Q q 0 0 0 rg BT 541.08 279.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 267.60 Td (factors that could affect demand for) Tj ET Q q 0 0 0 rg BT 202.90 267.60 Td ( our) Tj ET Q q 0 0 0 rg BT 220.22 267.60 Td ( pr) Tj ET Q q 0 0 0 rg BT 232.54 267.60 Td (oducts and services, which could have a material adverse effect on our) Tj ET Q q 0 0 0 rg BT 531.21 267.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 255.60 Td (business, our) Tj ET Q q 0 0 0 rg BT 104.90 255.60 Td ( ability to implement our) Tj ET Q q 0 0 0 rg BT 210.82 255.60 Td ( strategy) Tj ET Q q 0 0 0 rg BT 247.20 255.60 Td (, and our) Tj ET Q q 0 0 0 rg BT 285.64 255.60 Td ( r) Tj ET Q q 0 0 0 rg BT 292.40 255.60 Td (esults of operations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 234.60 Td (Our future performance will be impacted by general economic conditions including: changes in employment levels; ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 222.60 Td (consumer demand, preferences and confidence levels; the availability and cost of credit; fuel prices; levels of discretionary ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 210.60 Td (personal income; and interest rates. ) Tj ET Q q 0 0 0 rg BT 193.16 210.60 Td (W) Tj ET Q q 0 0 0 rg BT 201.79 210.60 Td (e also are subject to economic, competitive, and other conditions prevailing in the various ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 198.60 Td (markets in which we operate, even if those conditions are not prominent nationally) Tj ET Q q 0 0 0 rg BT 380.14 198.60 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 177.60 Td (Retail vehicle sales are cyclical and historically have experienced periodic downturns characterized by oversupply and weak ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 165.60 Td (demand, which could result in a need for us to lower the prices at which we sell vehicles, which would reduce our revenue per ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 153.60 Td (vehicle sold and our mar) Tj ET Q q 0 0 0 rg BT 148.18 153.60 Td (gins. ) Tj ET Q q 0 0 0 rg BT 169.29 153.60 Td (Additionally) Tj ET Q q 0 0 0 rg BT 219.20 153.60 Td (, a shift in consumer's vehicle preferences driven by pricing, fuel costs or other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 141.60 Td (factors may have a material adverse ef) Tj ET Q q 0 0 0 rg BT 203.12 141.60 Td (fect on our revenues, mar) Tj ET Q q 0 0 0 rg BT 304.84 141.60 Td (gins and results of operations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 120.60 Td (Changes in general economic conditions may make it dif) Tj ET Q q 0 0 0 rg BT 292.03 120.60 Td (ficult for us to execute our business strategy) Tj ET Q q 0 0 0 rg BT 467.73 120.60 Td (. In such an event, we ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 108.60 Td (may be required to enter into certain transactions in order to generate additional cash, which may include, but not be limited to, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 96.60 Td (selling certain of our dealerships or other assets or increasing borrowings under our existing, or any future, credit facilities. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 84.60 Td (There can be no assurance that, if necessary) Tj ET Q q 0 0 0 rg BT 224.32 84.60 Td (, we would be able to enter into any such transactions in a timely manner or on ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 72.60 Td (reasonable terms, if at all. Furthermore, in the event we were required to sell dealership assets, the sale of any material portion ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 60.60 Td (of such assets could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 235.91 60.60 Td (fect on our revenue and profitability) Tj ET Q q 0 0 0 rg BT 379.92 60.60 Td (.) Tj ET Q endstream endobj 33 0 obj <>] /Rotate 0 /Contents 34 0 R>> endobj 34 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 771.18505859375 m 125.1953125 771.18505859375 l s q 0 0 1 rg BT 50.00 772.75 Td (T) Tj ET Q q 0 0 1 rg BT 55.75 772.75 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 29.10 Td (16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 744.75 Td (Adverse conditions affecting one or) Tj ET Q q 0 0 0 rg BT 199.86 744.75 Td ( mor) Tj ET Q q 0 0 0 rg BT 219.94 744.75 Td (e of the vehicle manufactur) Tj ET Q q 0 0 0 rg BT 335.85 744.75 Td (ers with which we hold franchises or) Tj ET Q q 0 0 0 rg BT 491.22 744.75 Td ( their) Tj ET Q q 0 0 0 rg BT 514.08 744.75 Td ( inability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 732.75 Td (to deliver) Tj ET Q q 0 0 0 rg BT 89.58 732.75 Td ( a desirable mix of vehicles that our) Tj ET Q q 0 0 0 rg BT 240.77 732.75 Td ( consumers demand, could have a material adverse effect on our) Tj ET Q q 0 0 0 rg BT 514.17 732.75 Td ( business, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 720.75 Td (r) Tj ET Q q 0 0 0 rg BT 53.76 720.75 Td (esults of operations, financial condition, and cash flows. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 699.75 Td (Historically) Tj ET Q q 0 0 0 rg BT 111.06 699.75 Td (, we have generated most of our revenue through new vehicle sales, and new vehicle sales also tend to lead to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 687.75 Td (sales of higher) Tj ET Q q 0 0 0 rg BT 107.62 687.75 Td (-mar) Tj ET Q q 0 0 0 rg BT 126.31 687.75 Td (gin products and services, such as finance and insurance products and vehicle related parts and service. ) Tj ET Q q 0 0 0 rg BT 540.60 687.75 Td (As a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 675.75 Td (result, our profitability is dependent to a great extent on various aspects of vehicle manufacturers' operations, many of which ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 663.75 Td (are outside of our control. Our ability to sell new vehicles is dependent on manufacturers' ability to design and produce, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 651.75 Td (willingness to allocate and deliver to our dealerships, a desirable mix of popular new vehicles that consumers demand. Popular ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 639.75 Td (vehicles may often be dif) Tj ET Q q 0 0 0 rg BT 150.39 639.75 Td (ficult to obtain from manufacturers for a number of reasons, including the fact that manufacturers ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 627.75 Td (generally allocate their vehicles to dealerships based on sales history and capital expenditures associated with such dealerships. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 615.75 Td (Further) Tj ET Q q 0 0 0 rg BT 78.54 615.75 Td (, if a manufacturer fails to produce desirable vehicles or develops a reputation for producing undesirable vehicles or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 603.75 Td (produces vehicles that do not comply with applicable laws or government regulations, and we own dealerships that sell that ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 591.75 Td (manufacturer's vehicles, our revenues from those dealerships could be adversely af) Tj ET Q q 0 0 0 rg BT 380.72 591.75 Td (fected as consumers shift their vehicle ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 579.75 Td (purchases away from that brand.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 558.75 Td (Although we seek to limit our dependence on any one vehicle manufacturer) Tj ET Q q 0 0 0 rg BT 367.05 558.75 Td (, there can be no assurance that the brand mix ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 546.75 Td (allocated and delivered to our dealerships by the manufacturers will be appropriate or suf) Tj ET Q q 0 0 0 rg BT 406.13 546.75 Td (ficiently diverse, to protect us from a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 534.75 Td (significant decline in the desirability of vehicles manufactured by a particular manufacturer or disruptions in a manufacturer's ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 522.75 Td (ability to produce vehicles. For the year ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 237.49 522.75 Td (December?1, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 316.08 522.75 Td (, manufacturers representing 5% or more of our revenues ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 510.75 Td (from new vehicle sales were as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 466.25 430.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 466.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 466.25 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 438.25 430.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 438.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 438.25 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 410.25 430.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 410.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 410.25 64.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 466.25 m 480 466.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484 466.25 m 548 466.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 466.25 m 480 466.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484 466.25 m 548 466.25 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 470.93 Td (Manufactur) Tj ET Q q 0 0 0 rg BT 103.98 470.93 Td (er) Tj ET Q q 0 0 0 rg BT 112.68 470.93 Td ( \(V) Tj ET Q q 0 0 0 rg BT 124.81 470.93 Td (ehicle Brands\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.95 490.93 Td (% of? Tj ET Q q 0 0 0 rg BT 516.10 490.93 Td (T) Tj ET Q q 0 0 0 rg BT 521.85 490.93 Td (otal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 480.93 Td (New? Tj ET Q q 0 0 0 rg BT 510.70 480.93 Td (V) Tj ET Q q 0 0 0 rg BT 517.00 480.93 Td (ehicle) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.20 470.93 Td (Revenues) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 456.82 Td (American ) Tj ET Q q 0 0 0 rg BT 94.42 456.82 Td (Honda ) Tj ET Q q 0 0 0 rg BT 123.58 456.82 Td (Motor ) Tj ET Q q 0 0 0 rg BT 151.08 456.82 Td (Co., ) Tj ET Q q 0 0 0 rg BT 170.25 456.82 Td (Inc. ) Tj ET Q q 0 0 0 rg BT 188.02 456.82 Td (\() Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 191.35 456.82 Td (Honda ) Tj ET Q q 0 0 0 rg BT 221.07 456.82 Td (and ) Tj ET Q q 0 0 0 rg BT 238.39 456.82 Td (Acura) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 262.83 456.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 529.15 456.82 Td (22) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 539.15 456.82 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 442.82 Td (T) Tj ET Q q 0 0 0 rg BT 57.91 442.82 Td (oyota ) Tj ET Q q 0 0 0 rg BT 82.63 442.82 Td (Motor ) Tj ET Q q 0 0 0 rg BT 110.13 442.82 Td (Sales, ) Tj ET Q q 0 0 0 rg BT 136.24 442.82 Td (U.S.A., ) Tj ET Q q 0 0 0 rg BT 168.74 442.82 Td (Inc. ) Tj ET Q q 0 0 0 rg BT 186.51 442.82 Td (\() Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 189.84 442.82 Td (T) Tj ET Q q 0 0 0 rg BT 194.48 442.82 Td (oyota ) Tj ET Q q 0 0 0 rg BT 219.20 442.82 Td (and ) Tj ET Q q 0 0 0 rg BT 236.70 442.82 Td (Lexus) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.03 442.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 529.15 442.82 Td (18) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 539.15 442.82 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 428.82 Td (Nissan ) Tj ET Q q 0 0 0 rg BT 82.22 428.82 Td (North ) Tj ET Q q 0 0 0 rg BT 107.50 428.82 Td (America, ) Tj ET Q q 0 0 0 rg BT 146.92 428.82 Td (Inc. ) Tj ET Q q 0 0 0 rg BT 164.69 428.82 Td (\() Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 168.02 428.82 Td (Nissan ) Tj ET Q q 0 0 0 rg BT 197.75 428.82 Td (and ) Tj ET Q q 0 0 0 rg BT 215.25 428.82 Td (Infiniti) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 242.48 428.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 529.15 428.82 Td (15) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 539.15 428.82 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 414.82 Td (Ford ) Tj ET Q q 0 0 0 rg BT 73.89 414.82 Td (Motor ) Tj ET Q q 0 0 0 rg BT 101.39 414.82 Td (Company ) Tj ET Q q 0 0 0 rg BT 142.78 414.82 Td (\() Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 146.11 414.82 Td (For) Tj ET Q q 0 0 0 rg BT 160.74 414.82 Td (d ) Tj ET Q q 0 0 0 rg BT 168.24 414.82 Td (and ) Tj ET Q q 0 0 0 rg BT 185.74 414.82 Td (Lincoln) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.29 414.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 529.15 414.82 Td (12) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 539.15 414.82 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 400.82 Td (Mercedes-Benz ) Tj ET Q q 0 0 0 rg BT 117.74 400.82 Td (USA, ) Tj ET Q q 0 0 0 rg BT 142.75 400.82 Td (LLC ) Tj ET Q q 0 0 0 rg BT 164.14 400.82 Td (\() Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 167.47 400.82 Td (Mer) Tj ET Q q 0 0 0 rg BT 183.75 400.82 Td (cedes-Benz, ) Tj ET Q q 0 0 0 rg BT 233.73 400.82 Td (smart ) Tj ET Q q 0 0 0 rg BT 259.01 400.82 Td (and ) Tj ET Q q 0 0 0 rg BT 276.51 400.82 Td (Sprinter) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.29 400.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 534.15 400.82 Td (8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 539.15 400.82 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 386.82 Td (BMW) Tj ET Q q 0 0 0 rg BT 77.32 386.82 Td ( ) Tj ET Q q 0 0 0 rg BT 79.82 386.82 Td (of ) Tj ET Q q 0 0 0 rg BT 90.65 386.82 Td (North ) Tj ET Q q 0 0 0 rg BT 115.93 386.82 Td (America, ) Tj ET Q q 0 0 0 rg BT 155.35 386.82 Td (LLC ) Tj ET Q q 0 0 0 rg BT 176.74 386.82 Td (\() Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 180.07 386.82 Td (BMW ) Tj ET Q q 0 0 0 rg BT 205.34 386.82 Td (and ) Tj ET Q q 0 0 0 rg BT 222.84 386.82 Td (Mini) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 241.72 386.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 534.15 386.82 Td (6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 539.15 386.82 Td (%) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 361.75 Td (Similar to automotive retailers, vehicle manufacturers may be af) Tj ET Q q 0 0 0 rg BT 321.72 361.75 Td (fected by the long-term U.S. and international economic ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 349.75 Td (climate. In addition, we remain vulnerable to other matters that may impact the manufacturers of the vehicles we sell, many of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 337.75 Td (which are outside of our control, including: \(i\) changes in their respective financial condition; \(ii\) changes in their respective ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 325.75 Td (marketing ef) Tj ET Q q 0 0 0 rg BT 100.13 325.75 Td (forts; \(iii\) changes in their respective reputation; \(iv\) manufacturer and other product defects, including recalls; \(v\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 313.75 Td (changes in their respective management; \(vi\) disruptions in the production and delivery of vehicles and parts due to natural ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 301.75 Td (disasters or other reasons; and \(vii\) issues with respect to labor relations. Our business is highly dependent on consumer ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 289.75 Td (demand and brand preferences for our manufacturers products. Manufacturer recall campaigns are a common occurrence that ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 277.75 Td (have accelerated in frequency and scope over the last several years. Manufacturer recall campaigns could adversely af) Tj ET Q q 0 0 0 rg BT 521.58 277.75 Td (fect our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 265.75 Td (new and used vehicle sales or customer residual trade-in valuations, could cause us to temporarily remove vehicles from our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 253.75 Td (inventory) Tj ET Q q 0 0 0 rg BT 87.18 253.75 Td (, could force us to incur increased costs, and could expose us to litigation and adverse publicity related to the sale of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 241.75 Td (recalled vehicles, which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 277.26 241.75 Td (fect on our business, results of operations, financial condition and cash ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 229.75 Td (flows. ) Tj ET Q q 0 0 0 rg BT 76.54 229.75 Td (V) Tj ET Q q 0 0 0 rg BT 82.65 229.75 Td (ehicle manufacturers that produce vehicles outside of the U.S. are subject to additional risks including changes in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 217.75 Td (quotas, tarif) Tj ET Q q 0 0 0 rg BT 97.08 217.75 Td (fs or duties, fluctuations in foreign currency exchange rates, regulations governing imports and the costs related ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 205.75 Td (thereto, and foreign governmental regulations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 184.75 Td (Adverse conditions that materially af) Tj ET Q q 0 0 0 rg BT 212.61 184.75 Td (fect a vehicle manufacturer and its ability to profitably design, market, produce or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 172.75 Td (distribute desirable new vehicles could in turn materially adversely af) Tj ET Q q 0 0 0 rg BT 327.83 172.75 Td (fect our ability to \(i\) sell vehicles produced by that ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 160.75 Td (manufacturer) Tj ET Q q 0 0 0 rg BT 102.40 160.75 Td (, \(ii\) obtain or finance our new vehicle inventories, \(iii\) access or benefit from manufacturer financial assistance ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 148.75 Td (programs, \(iv\) collect in full or on a timely basis any amounts due therefrom, and/or \(v\) obtain other goods and services ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 136.75 Td (provided by the impacted manufacturer) Tj ET Q q 0 0 0 rg BT 206.66 136.75 Td (. In addition, we depend on manufacturers' ability to design, produce, and supply parts to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 124.75 Td (us and any failure to do so could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 286.45 124.75 Td (fect on our parts and services business. Our business, results of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 112.75 Td (operations, financial condition, and cash flows could be materially adversely af) Tj ET Q q 0 0 0 rg BT 366.43 112.75 Td (fected as a result of any event that has an ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 100.75 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 90.13 100.75 Td (fect on any vehicle manufacturer) Tj ET Q q 0 0 0 rg BT 221.17 100.75 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 79.75 Td (In addition, if a vehicle manufacturer's financial condition worsens and it seeks protection from creditors in bankruptcy or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 67.75 Td (similar proceedings, or otherwise under the laws of its jurisdiction of or) Tj ET Q q 0 0 0 rg BT 335.92 67.75 Td (ganization, \(i\) the manufacturer could seek to terminate ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 55.75 Td (or reject all or certain of our franchises, \(ii\) if the manufacturer is successful in terminating all or certain of our franchises, we ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 43.75 Td (may not receive adequate compensation for those franchises, \(iii\) our cost to obtain financing for our new vehicle inventory ) Tj ET Q endstream endobj 35 0 obj <>] /Rotate 0 /Contents 36 0 R>> endobj 36 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 771.18505859375 m 125.1953125 771.18505859375 l s q 0 0 1 rg BT 50.00 772.75 Td (T) Tj ET Q q 0 0 1 rg BT 55.75 772.75 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 29.10 Td (17) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 744.60 Td (may increase or no longer be available from such manufacturer's captive finance subsidiary) Tj ET Q q 0 0 0 rg BT 414.39 744.60 Td (, \(iv\) consumer demand for such ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 732.60 Td (manufacturer's products could be materially adversely af) Tj ET Q q 0 0 0 rg BT 276.03 732.60 Td (fected, especially if costs related to improving such manufacturer's ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 720.60 Td (financial condition are factored into the price of its products, \(v\) there may be a significant disruption in the availability of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 708.60 Td (consumer credit to purchase or lease that manufacturer's vehicles or negative changes in the terms of such financing, which may ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (negatively impact our sales, or \(vi\) there may be a reduction in the value of receivables and inventory associated with that ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (manufacturer) Tj ET Q q 0 0 0 rg BT 102.40 684.60 Td (, among other things. ) Tj ET Q q 0 0 0 rg BT 189.43 684.60 Td (The occurrence of any one or more of these events could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 523.25 684.60 Td (fect on ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (our business, results of operations, financial condition, and cash flows.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 651.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 651.60 Td (Our) Tj ET Q q 0 0 0 rg BT 69.60 651.60 Td ( outstanding indebtedness, ability to incur) Tj ET Q q 0 0 0 rg BT 248.34 651.60 Td ( additional debt and the pr) Tj ET Q q 0 0 0 rg BT 362.36 651.60 Td (ovisions in the agr) Tj ET Q q 0 0 0 rg BT 439.69 651.60 Td (eements governing our) Tj ET Q q 0 0 0 rg BT 536.71 651.60 Td ( debt, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 639.60 Td (and certain other) Tj ET Q q 0 0 0 rg BT 123.20 639.60 Td ( agr) Tj ET Q q 0 0 0 rg BT 139.95 639.60 Td (eements, could have a material adverse effect on our) Tj ET Q q 0 0 0 rg BT 362.77 639.60 Td ( business, financial condition, r) Tj ET Q q 0 0 0 rg BT 494.84 639.60 Td (esults of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 627.60 Td (operations, and cash flows.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 603.60 Td (As of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.94 603.60 Td (December?1, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 167.53 603.60 Td (, we had total debt of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 254.45 603.60 Td ($879.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 313.34 603.60 Td (, which excludes total floor plan notes payable of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 512.72 603.60 Td ($732.1 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 591.60 Td (million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 78.39 591.60 Td (. ) Tj ET Q q 0 0 0 rg BT 83.21 591.60 Td (W) Tj ET Q q 0 0 0 rg BT 91.85 591.60 Td (e have the ability to incur substantial additional debt in the future to finance, among other things, acquisitions, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 579.60 Td (working capital and capital expenditures, and new and used vehicle inventory) Tj ET Q q 0 0 0 rg BT 359.58 579.60 Td (, as well as to refinance new and used vehicle ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 567.60 Td (inventory) Tj ET Q q 0 0 0 rg BT 87.18 567.60 Td (, subject in each case to the restrictions contained in our debt instruments and other agreements existing at the time ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 555.60 Td (such indebtedness is incurred.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 534.60 Td ( Our debt service obligations could have important consequences to us for the foreseeable future, including the following: ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 522.60 Td (\(i\) our ability to obtain additional financing for acquisitions, capital expenditures, working capital or other general corporate ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 510.60 Td (purposes may be impaired; \(ii\) a substantial portion of our cash flow from operating activities must be dedicated to the payment ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 498.60 Td (of principal and interest on our debt, thereby reducing the funds available to us for our operations and other corporate purposes; ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 486.60 Td (\(iii\) some of our borrowings are and will continue to be at variable rates of interest, which exposes us to risks of interest rate ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 474.60 Td (increases; and \(iv\) we may be or become substantially more leveraged than some of our competitors, which may place us at a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 462.60 Td (relative competitive disadvantage and make us more vulnerable to changes in market conditions and governmental regulations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 441.60 Td (In addition to our ability to incur additional debt in the future, there are operating and financial restrictions and covenants, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 429.60 Td (such as leverage covenants, in certain of our debt and mortgage agreements, including the agreement governing our senior ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 417.60 Td (credit facility) Tj ET Q q 0 0 0 rg BT 102.43 417.60 Td (, the indenture governing our senior notes and our mortgage agreements and related mortgage guarantees, as well ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 405.60 Td (as certain other agreements to which we are a party that may adversely af) Tj ET Q q 0 0 0 rg BT 342.80 405.60 Td (fect our ability to finance our future operations or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 393.60 Td (capital needs or to pursue certain business activities. ) Tj ET Q q 0 0 0 rg BT 261.20 393.60 Td (These limit, among other things, our ability to incur certain additional ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 381.60 Td (debt, create certain liens or other encumbrances, and make certain payments \(including dividends and repurchases of our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 369.60 Td (common stock and for investments\). Certain of these agreements also require us to maintain compliance with certain financial ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 357.60 Td (ratios.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 336.60 Td (Our failure to comply with any of these covenants in the future could constitute a default under the relevant agreement, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 324.60 Td (which could, depending on the relevant agreement, \(i\) entitle the creditors under such agreement to terminate our ability to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 312.60 Td (borrow under the relevant agreement and accelerate our obligations to repay outstanding borrowings; \(ii\) require us to repay ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 300.60 Td (those borrowings; \(iii\) entitle the creditors under such agreement to foreclose on the property securing the relevant ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 288.60 Td (indebtedness; or \(iv\) prevent us from making debt service payments on certain of our other indebtedness, any of which would ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 276.60 Td (have a material adverse ef) Tj ET Q q 0 0 0 rg BT 153.70 276.60 Td (fect on our business, financial condition, results of operations or cash flows. In many cases, a default ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 264.60 Td (under one of our debt, mortgage, or other agreements, could trigger cross-default provisions in one or more of our other debt or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 252.60 Td (mortgage agreements. ) Tj ET Q q 0 0 0 rg BT 140.12 252.60 Td (There can be no assurance that our creditors would agree to an amendment or waiver of our covenants. In ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 240.60 Td (the event we obtain an amendment or waiver) Tj ET Q q 0 0 0 rg BT 228.75 240.60 Td (, we would likely incur additional fees and higher interest expense.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 219.60 Td (In addition to the financial and other covenants contained in our various debt or mortgage agreements, certain of our lease ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 207.60 Td (agreements contain covenants that give our landlords the right to terminate the lease, seek significant cash damages, or evict us ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 195.60 Td (from the applicable property) Tj ET Q q 0 0 0 rg BT 162.97 195.60 Td (, if we fail to comply) Tj ET Q q 0 0 0 rg BT 246.19 195.60 Td (. Similarly) Tj ET Q q 0 0 0 rg BT 287.76 195.60 Td (, our failure to comply with any financial or other covenants in any ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 183.60 Td (of our framework agreements, would give the relevant manufacturer certain rights, including the right to reject proposed ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 171.60 Td (acquisitions, and may give it the right to repurchase its franchises from us. Events that give rise to such rights, and our inability ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 159.60 Td (to acquire additional dealerships or the requirement that we sell one or more of our dealerships at any time, could inhibit the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 147.60 Td (growth of our business, and could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 291.74 147.60 Td (fect on our business, financial condition, results of operations and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 135.60 Td (cash flows. Manufacturers may also have the right to restrict our ability to provide guarantees of our operating companies, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 123.60 Td (pledges of the capital stock of our subsidiaries and liens on our assets, which could materially adversely ef) Tj ET Q q 0 0 0 rg BT 475.31 123.60 Td (fect our ability to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 111.60 Td (obtain financing for our business and operations on favorable terms or at desired levels, if at all.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 90.60 Td (The occurrence of any one of these events may limit our ability to take strategic actions that would otherwise enable us to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 78.60 Td (manage our business, in a manner in which we otherwise would, absent such limitations, which could materially adversely ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 66.60 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 66.60 Td (fect our business, financial condition, results of operations and cash flows.) Tj ET Q endstream endobj 37 0 obj <>] /Rotate 0 /Contents 38 0 R>> endobj 38 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 771.18505859375 m 125.1953125 771.18505859375 l s q 0 0 1 rg BT 50.00 772.75 Td (T) Tj ET Q q 0 0 1 rg BT 55.75 772.75 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 29.10 Td (18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 744.75 Td (Our) Tj ET Q q 0 0 0 rg BT 67.10 744.75 Td ( business, financial condition, and r) Tj ET Q q 0 0 0 rg BT 217.79 744.75 Td (esults of operations may be materially adversely affected by incr) Tj ET Q q 0 0 0 rg BT 491.73 744.75 Td (eases in inter) Tj ET Q q 0 0 0 rg BT 547.09 744.75 Td (est ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 732.75 Td (rates.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 711.75 Td (W) Tj ET Q q 0 0 0 rg BT 73.14 711.75 Td (e generally finance our purchases of new vehicle inventory) Tj ET Q q 0 0 0 rg BT 308.50 711.75 Td (, have the ability to finance the purchases of used vehicle ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 699.75 Td (inventory) Tj ET Q q 0 0 0 rg BT 87.18 699.75 Td (, and have the availability to borrow funds for working capital under our senior secured credit facilities that char) Tj ET Q q 0 0 0 rg BT 536.00 699.75 Td (ge ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 687.75 Td (interest at variable rates. ) Tj ET Q q 0 0 0 rg BT 149.55 687.75 Td (Therefore, our interest expense from variable rate debt will rise with increases in interest rates. In ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 675.75 Td (addition, a significant rise in interest rates may also have the ef) Tj ET Q q 0 0 0 rg BT 301.46 675.75 Td (fect of depressing demand in the interest rate sensitive aspects of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 663.75 Td (our business, particularly new and used vehicle sales and the related profit mar) Tj ET Q q 0 0 0 rg BT 364.49 663.75 Td (gins and F&I revenue per vehicle, because most ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 651.75 Td (of our customers finance their vehicle purchases.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.26 651.75 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 247.76 651.75 Td (As a result, rising interest rates may have the ef) Tj ET Q q 0 0 0 rg BT 437.51 651.75 Td (fect of simultaneously ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 639.75 Td (increasing our capital costs and reducing our revenues. Given our variable interest rate debt and floor plan notes payable ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 627.75 Td (outstanding as of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 120.33 627.75 Td (December?1, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 198.91 627.75 Td (, each one percent increase in market interest rates would increase our total annual interest ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 615.75 Td (expense by as much as ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 143.08 615.75 Td ($7.2 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 191.98 615.75 Td (. ) Tj ET Q q 0 0 0 rg BT 196.79 615.75 Td (When considered in connection with reduced expected sales as and if interest rates ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 603.75 Td (increase, any such increase could materially adversely af) Tj ET Q q 0 0 0 rg BT 276.43 603.75 Td (fect our business, financial condition and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.75 Td (Our) Tj ET Q q 0 0 0 rg BT 67.10 582.75 Td ( vehicle sales, financial condition, and r) Tj ET Q q 0 0 0 rg BT 234.15 582.75 Td (esults of operations may be materially adversely affected by changes in costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.75 Td (or) Tj ET Q q 0 0 0 rg BT 58.76 570.75 Td ( availability of consumer) Tj ET Q q 0 0 0 rg BT 163.85 570.75 Td ( financing.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 549.75 Td (The majority of vehicles purchased by our customers are financed. Reductions in the availability of credit to consumers ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 537.75 Td (have contributed to declines in our vehicle sales in past periods. Reductions in available consumer credit or increased costs of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 525.75 Td (that credit, could result in a decline in our vehicle sales, which would have a material adverse ef) Tj ET Q q 0 0 0 rg BT 433.34 525.75 Td (fect on our financial condition ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 513.75 Td (and results of operations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 492.75 Td (Lenders that have historically provided financing to those buyers who, for various reasons, do not have access to traditional ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 480.75 Td (financing, including those buyers who have a poor credit history or lack the down payment necessary to purchase a vehicle, are ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 468.75 Td (often referred to as subprime lenders. If market conditions cause subprime lenders to tighten credit standards, or if interest rates ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 456.75 Td (increase, the ability to obtain financing from subprime lenders for these consumers to purchase vehicles could become limited, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 444.75 Td (resulting in a decline in our vehicle sales, which, in turn, could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 407.24 444.75 Td (fect on our financial condition and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 432.75 Td (results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.75 Td (Substantial competition in automobile sales and services may have a material adverse effect on our) Tj ET Q q 0 0 0 rg BT 469.84 411.75 Td ( r) Tj ET Q q 0 0 0 rg BT 476.59 411.75 Td (esults of operations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 390.75 Td (The automotive retail and service industry is highly competitive with respect to price, service, location, and selection. Our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 378.75 Td (competition includes: \(i\) franchised automobile dealerships in our markets that sell the same or similar new and used vehicles; ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 366.75 Td (\(ii\) privately negotiated sales of used vehicles; \(iii\) other used vehicle retailers, including regional and national vehicle rental ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 354.75 Td (companies; \(iv\) Internet-based used vehicle brokers that sell used vehicles to consumers; \(v\) service center and parts supply ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 342.75 Td (chain stores; and \(vi\) independent service and repair shops.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 321.75 Td (W) Tj ET Q q 0 0 0 rg BT 73.14 321.75 Td (e do not have any cost advantage over other retailers in purchasing new vehicles from manufacturers. ) Tj ET Q q 0 0 0 rg BT 480.86 321.75 Td (W) Tj ET Q q 0 0 0 rg BT 489.50 321.75 Td (e typically rely on ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 309.75 Td (our advertising, merchandising, sales expertise, service reputation, strong local branding, and dealership location to sell new ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 297.75 Td (vehicles. Because our dealer agreements only grant us a non-exclusive right to sell a manufacturer's product within a specified ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 285.75 Td (market area, our revenues, gross profit and overall profitability may be materially adversely af) Tj ET Q q 0 0 0 rg BT 426.67 285.75 Td (fected if competing dealerships ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 273.75 Td (expand their market share. Further) Tj ET Q q 0 0 0 rg BT 187.10 273.75 Td (, our vehicle manufacturers may decide to award additional franchises in our markets in ways ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 261.75 Td (that negatively impact our sales.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 240.75 Td (The Internet has become a significant part of the advertising and sales process in our industry) Tj ET Q q 0 0 0 rg BT 437.35 240.75 Td (. Customers are using the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 228.75 Td (Internet to shop, and compare prices, for new and used vehicles, automotive repair and maintenance services, finance and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 216.75 Td (insurance products, and other automotive products. If we are unable to ef) Tj ET Q q 0 0 0 rg BT 341.72 216.75 Td (fectively use the Internet to attract customers to our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 204.75 Td (own on-line channels and mobile applications, and, in turn, to our stores, our business, financial condition, results of operations, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 192.75 Td (and cash flows could be materially adversely af) Tj ET Q q 0 0 0 rg BT 239.52 192.75 Td (fected. ) Tj ET Q q 0 0 0 rg BT 268.40 192.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 318.30 192.75 Td (, the growing use of social media by consumers increases the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 180.75 Td (speed and extent that information and opinions can be shared, and negative posts or comments on social media about us or any ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 168.75 Td (of our stores, could damage our reputation and brand names, which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 450.28 168.75 Td (fect on our business, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 156.75 Td (financial condition, results of operations, and cash flows. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 135.75 Td ( ) Tj ET Q q 0 0 0 rg BT 61.45 135.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 111.35 135.75 Td (, if one or more companies are permitted to circumvent the state franchise laws of several states in the United ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 123.75 Td (States thereby permitting them to sell their new vehicles without the requirements of establishing a dealer) Tj ET Q q 0 0 0 rg BT 471.68 123.75 Td (-network, they may be ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 111.75 Td (able to have a competitive advantage over the traditional dealers, which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 467.74 111.75 Td (fect on our sales in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 99.75 Td (those states.) Tj ET Q endstream endobj 39 0 obj <>] /Rotate 0 /Contents 40 0 R>> endobj 40 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 771.18505859375 m 125.1953125 771.18505859375 l s q 0 0 1 rg BT 50.00 772.75 Td (T) Tj ET Q q 0 0 1 rg BT 55.75 772.75 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 29.10 Td (19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 744.75 Td (W) Tj ET Q q 0 0 0 rg BT 58.95 744.75 Td (e ar) Tj ET Q q 0 0 0 rg BT 75.14 744.75 Td (e dependent upon our) Tj ET Q q 0 0 0 rg BT 168.04 744.75 Td ( r) Tj ET Q q 0 0 0 rg BT 174.80 744.75 Td (elationships with the manufactur) Tj ET Q q 0 0 0 rg BT 315.46 744.75 Td (ers of vehicles that we sell and ar) Tj ET Q q 0 0 0 rg BT 455.54 744.75 Td (e subject to r) Tj ET Q q 0 0 0 rg BT 510.61 744.75 Td (estrictions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 732.75 Td (imposed by) Tj ET Q q 0 0 0 rg BT 97.57 732.75 Td (, and significant influence fr) Tj ET Q q 0 0 0 rg BT 217.12 732.75 Td (om, these vehicle manufactur) Tj ET Q q 0 0 0 rg BT 341.91 732.75 Td (ers. ) Tj ET Q q 0 0 0 rg BT 359.13 732.75 Td (Any of these r) Tj ET Q q 0 0 0 rg BT 418.66 732.75 Td (estrictions or) Tj ET Q q 0 0 0 rg BT 474.29 732.75 Td ( any changes or) Tj ET Q q 0 0 0 rg BT 540.51 732.75 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 720.75 Td (deterioration of these r) Tj ET Q q 0 0 0 rg BT 147.34 720.75 Td (elationships could have a material adverse effect on our) Tj ET Q q 0 0 0 rg BT 383.80 720.75 Td ( business, financial condition, r) Tj ET Q q 0 0 0 rg BT 515.87 720.75 Td (esults of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 708.75 Td (operations, and cash flows.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 687.75 Td (W) Tj ET Q q 0 0 0 rg BT 73.14 687.75 Td (e are dependent on our relationships with the manufacturers of the vehicles we sell, which have the ability to exercise a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 675.75 Td (great deal of control and influence over our day-to-day operations, as a result of the terms of our dealer) Tj ET Q q 0 0 0 rg BT 461.44 675.75 Td (, framework, and related ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 663.75 Td (agreements. ) Tj ET Q q 0 0 0 rg BT 99.85 663.75 Td (W) Tj ET Q q 0 0 0 rg BT 108.49 663.75 Td (e may obtain new vehicles from manufacturers, service vehicles, sell new vehicles, and display vehicle ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 651.75 Td (manufacturers' trademarks only to the extent permitted under these agreements. ) Tj ET Q q 0 0 0 rg BT 369.61 651.75 Td (The terms of these agreements may conflict ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 639.75 Td (with our interests and objectives and may impose limitations on key aspects of our operations, including acquisition strategy ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 627.75 Td (and capital spending.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 606.75 Td (For example, manufacturers can set performance standards with respect to sales volume, sales ef) Tj ET Q q 0 0 0 rg BT 450.56 606.75 Td (fectiveness and customer ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 594.75 Td (satisfaction, and require us to obtain manufacturer consent before we can acquire dealerships selling a manufacturer's ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 582.75 Td (automobiles. From time to time, we may be precluded under agreements with certain manufacturers from acquiring additional ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 570.75 Td (franchises, or subject to other adverse actions, to the extent we are not meeting certain performance criteria at our existing ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 558.75 Td (stores \(with respect to matters such as sales volume, customer satisfaction and sales ef) Tj ET Q q 0 0 0 rg BT 394.22 558.75 Td (fectiveness\) until our performance ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 546.75 Td (improves in accordance with the agreements, subject to applicable state franchise laws. In addition, many vehicle manufacturers ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 534.75 Td (place limits on the total number of franchises that any group of af) Tj ET Q q 0 0 0 rg BT 311.46 534.75 Td (filiated dealerships may own and certain manufacturers place ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 522.75 Td (limits on the number of franchises or share of total brand vehicle sales that may be maintained by an af) Tj ET Q q 0 0 0 rg BT 461.13 522.75 Td (filiated dealership group ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 510.75 Td (on a national, regional or local basis, as well as limits on store ownership in contiguous markets. If we reach any of these limits, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 498.75 Td (we may be prevented from making further acquisitions, which could adversely af) Tj ET Q q 0 0 0 rg BT 374.21 498.75 Td (fect our future growth. ) Tj ET Q q 0 0 0 rg BT 467.05 498.75 Td (W) Tj ET Q q 0 0 0 rg BT 475.69 498.75 Td (e cannot provide ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 486.75 Td (assurance that manufacturers will approve future acquisitions timely) Tj ET Q q 0 0 0 rg BT 322.37 486.75 Td (, if at all, which could significantly impair the execution of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 474.75 Td (our acquisition strategy) Tj ET Q q 0 0 0 rg BT 142.72 474.75 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 453.75 Td (In addition, certain manufacturers use a dealership's manufacturer) Tj ET Q q 0 0 0 rg BT 327.65 453.75 Td (-determined customer satisfaction index \("CSI"\) score as a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 441.75 Td (factor governing participation in incentive programs. ) Tj ET Q q 0 0 0 rg BT 263.42 441.75 Td (T) Tj ET Q q 0 0 0 rg BT 268.83 441.75 Td (o the extent we do not meet minimum score requirements, our future ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 429.75 Td (payments may be materially reduced or we may be precluded from receiving certain incentives, which could materially ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 417.75 Td (adversely af) Tj ET Q q 0 0 0 rg BT 97.90 417.75 Td (fect our business, financial condition, results of operations and cash flows.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 396.75 Td (Manufacturers also typically establish facilities and minimum capital requirements for dealerships on a case-by-case basis. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 384.75 Td (In certain circumstances, including as a condition to obtaining consent to a proposed acquisition, a manufacturer may require us ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 372.75 Td (to remodel, upgrade or move our facilities, and capitalize the subject dealership at levels we would not otherwise choose to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 360.75 Td (fund, causing us to divert our financial resources away from uses that management believes may be of higher long-term value ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 348.75 Td (to us. Delays in obtaining, or failing to obtain, manufacturer consent, would impede our ability to execute acquisitions that we ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 336.75 Td (believe would integrate well with our overall strategy and limit our ability to expand our business.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 315.75 Td (Manufacturers can also establish new franchises or relocate existing franchises, subject to applicable state franchise laws. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 303.75 Td (The establishment or relocation of franchises in our markets could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 421.39 303.75 Td (fect on the business, financial ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 291.75 Td (condition and results of operations of our dealerships in the market in which the action is taken.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 270.75 Td (Manufacturers may also limit our ability to divest one or more of our dealerships in a timely manner or at all. Most of our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 258.75 Td (dealer agreements provide the manufacturer with a right of first refusal to purchase any of the manufacturer's franchises we ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 246.75 Td (seek to sell. Divestitures may also require manufacturer consent and failure to obtain consent would require us to find another ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 234.75 Td (potential buyer or wait until the buyer is able to meet the requirements of the manufacturer) Tj ET Q q 0 0 0 rg BT 411.88 234.75 Td (. ) Tj ET Q q 0 0 0 rg BT 416.33 234.75 Td (A) Tj ET Q q 0 0 0 rg BT 423.00 234.75 Td ( delay in the sale of a dealership ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 222.75 Td (could have a negative impact on our business, financial condition, results of operations, and cash flows.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 201.75 Td (Manufacturers may terminate or may not renew our dealer and framework agreements, or may compel us to divest our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 189.75 Td (dealerships, for a number of reasons, including default under the agreement, any unapproved change of control \(which specific ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 177.75 Td (changes vary from manufacturer to manufacturer) Tj ET Q q 0 0 0 rg BT 245.39 177.75 Td (, but which include material changes in the composition of our Board of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 165.75 Td (Directors during a specified time period, the acquisition of 5% or more of our voting stock by another vehicle manufacturer or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 153.75 Td (distributor) Tj ET Q q 0 0 0 rg BT 90.76 153.75 Td (, the acquisition of 20% or more of our voting stock by third parties, and the acquisition of an ownership interest ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 141.75 Td (suf) Tj ET Q q 0 0 0 rg BT 61.54 141.75 Td (ficient to direct or influence management and policies\), or certain other unapproved events \(including certain extraordinary ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 129.75 Td (corporate transactions such as a mer) Tj ET Q q 0 0 0 rg BT 193.98 129.75 Td (ger or sale of all or substantially all of our assets\). ) Tj ET Q q 0 0 0 rg BT 395.97 129.75 Td (T) Tj ET Q q 0 0 0 rg BT 401.73 129.75 Td (riggers of these clauses are often based ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 117.75 Td (upon actions by our stockholders and are generally outside of our control. Restrictions on any unapproved changes of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 105.75 Td (ownership or management may adversely impact our value, as they may prevent or deter prospective acquirers from gaining ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 93.75 Td (control of us. In addition, actions taken by a manufacturer to exploit its bar) Tj ET Q q 0 0 0 rg BT 348.96 93.75 Td (gaining position in negotiating the terms of renewals ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 81.75 Td (of franchise agreements or otherwise, could also have a material adverse ef) Tj ET Q q 0 0 0 rg BT 349.74 81.75 Td (fect on our revenues and profitability) Tj ET Q q 0 0 0 rg BT 497.65 81.75 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 60.75 Td (There can be no assurances that we will be able to renew our dealer and framework agreements on a timely basis, on ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 48.75 Td (acceptable terms, or at all. Our business, financial condition, and results of operations may be materially adversely af) Tj ET Q q 0 0 0 rg BT 517.77 48.75 Td (fected to ) Tj ET Q endstream endobj 41 0 obj <>] /Rotate 0 /Contents 42 0 R>> endobj 42 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 771.18505859375 m 125.1953125 771.18505859375 l s q 0 0 1 rg BT 50.00 772.75 Td (T) Tj ET Q q 0 0 1 rg BT 55.75 772.75 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 29.10 Td (20) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 744.60 Td (the extent that our rights become compromised or our operations are restricted due to the terms of our dealer or framework ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 732.60 Td (agreements or if we lose franchises representing a significant percentage of our revenues due to termination or failure to renew ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 720.60 Td (such agreements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 699.60 Td (If vehicle manufactur) Tj ET Q q 0 0 0 rg BT 141.53 699.60 Td (ers r) Tj ET Q q 0 0 0 rg BT 161.05 699.60 Td (educe or) Tj ET Q q 0 0 0 rg BT 197.25 699.60 Td ( discontinue sales incentive, warranty or) Tj ET Q q 0 0 0 rg BT 368.72 699.60 Td ( other) Tj ET Q q 0 0 0 rg BT 393.81 699.60 Td ( pr) Tj ET Q q 0 0 0 rg BT 406.13 699.60 Td (omotional pr) Tj ET Q q 0 0 0 rg BT 461.23 699.60 Td (ograms, our) Tj ET Q q 0 0 0 rg BT 512.71 699.60 Td ( financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 687.60 Td (condition, r) Tj ET Q q 0 0 0 rg BT 98.77 687.60 Td (esults of operations, and cash flows may be materially adversely affected.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 666.60 Td (W) Tj ET Q q 0 0 0 rg BT 73.14 666.60 Td (e benefit from certain sales incentive, warranty) Tj ET Q q 0 0 0 rg BT 260.46 666.60 Td (, and other promotional programs of vehicle manufacturers that are ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 654.60 Td (intended to promote and support their respective new vehicle sales. Key incentive programs include: \(i\) customer rebates on ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 642.60 Td (new vehicles; \(ii\) dealer incentives on new vehicles; \(iii\) special financing or leasing terms; \(iv\) warranties on new and used ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 630.60 Td (vehicles; and \(v\) sponsorship of used vehicle sales by authorized new vehicle dealers.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 609.60 Td (V) Tj ET Q q 0 0 0 rg BT 70.61 609.60 Td (ehicle manufacturers often make many changes to their incentive programs. ) Tj ET Q q 0 0 0 rg BT 375.77 609.60 Td (Any reduction or discontinuation of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 597.60 Td (manufacturers' incentive programs for any reason, including a supply and demand imbalance, may reduce our sales volume ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 585.60 Td (which, in turn, could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 239.24 585.60 Td (fect on our results of operations, cash flows, and financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 564.60 Td (If state laws that pr) Tj ET Q q 0 0 0 rg BT 132.64 564.60 Td (otect automotive r) Tj ET Q q 0 0 0 rg BT 210.21 564.60 Td (etailers ar) Tj ET Q q 0 0 0 rg BT 253.06 564.60 Td (e r) Tj ET Q q 0 0 0 rg BT 264.26 564.60 Td (epealed, weakened, or) Tj ET Q q 0 0 0 rg BT 357.95 564.60 Td ( superseded by our) Tj ET Q q 0 0 0 rg BT 438.62 564.60 Td ( framework agr) Tj ET Q q 0 0 0 rg BT 505.63 564.60 Td (eements with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 552.60 Td (manufactur) Tj ET Q q 0 0 0 rg BT 99.87 552.60 Td (ers, our) Tj ET Q q 0 0 0 rg BT 132.46 552.60 Td ( dealerships will be mor) Tj ET Q q 0 0 0 rg BT 233.94 552.60 Td (e susceptible to termination, non-r) Tj ET Q q 0 0 0 rg BT 380.14 552.60 Td (enewal, or) Tj ET Q q 0 0 0 rg BT 423.84 552.60 Td ( r) Tj ET Q q 0 0 0 rg BT 430.59 552.60 Td (enegotiation of their) Tj ET Q q 0 0 0 rg BT 516.51 552.60 Td ( dealer) Tj ET Q q 0 0 0 rg BT 545.48 552.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 540.60 Td (agr) Tj ET Q q 0 0 0 rg BT 63.76 540.60 Td (eements,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 100.69 540.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.19 540.60 Td (which could have a material adverse effect our) Tj ET Q q 0 0 0 rg BT 301.58 540.60 Td ( business, financial condition, and r) Tj ET Q q 0 0 0 rg BT 452.27 540.60 Td (esults of operations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 519.60 Td (Applicable state laws generally provide that an automobile manufacturer may not terminate or refuse to renew a dealer ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 507.60 Td (agreement unless it has first provided the dealer with written notice setting forth "good cause" and stating the grounds for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 495.60 Td (termination or non-renewal. Some state laws allow dealers to file protests or petitions or allow them to attempt to comply with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 483.60 Td (the manufacturer's criteria within a notice period to avoid the termination or non-renewal. Our framework agreements with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 471.60 Td (certain manufacturers contain provisions that, among other things, attempt to limit the protections available to dealers under ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 459.60 Td (these laws, and, though unsuccessful to date, manufacturers' ongoing lobbying ef) Tj ET Q q 0 0 0 rg BT 373.54 459.60 Td (forts may lead to the repeal or revision of these ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 447.60 Td (laws. If these laws are repealed in the states in which we operate, manufacturers may be able to terminate our franchises ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 435.60 Td (without providing advance notice, an opportunity to cure or a showing of good cause. ) Tj ET Q q 0 0 0 rg BT 394.24 435.60 Td (W) Tj ET Q q 0 0 0 rg BT 403.27 435.60 Td (ithout the protection of these state laws, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 423.60 Td (it may also be more dif) Tj ET Q q 0 0 0 rg BT 141.79 423.60 Td (ficult for us to renew our dealer agreements upon expiration. Changes in laws that provide ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 411.60 Td (manufacturers the ability to terminate our dealer agreements could materially adversely af) Tj ET Q q 0 0 0 rg BT 409.44 411.60 Td (fect our business, financial condition, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 399.60 Td (and results of operations. Furthermore, if a manufacturer seeks protection from creditors in bankruptcy) Tj ET Q q 0 0 0 rg BT 460.11 399.60 Td (, courts have held that ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 387.60 Td (the federal bankruptcy laws may supersede the state laws that protect automotive retailers resulting in either the termination, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 375.60 Td (non-renewal or rejection of franchises by such manufacturers, which, in turn, could materially adversely af) Tj ET Q q 0 0 0 rg BT 476.66 375.60 Td (fect our business, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 363.60 Td (financial condition, and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.60 Td (A) Tj ET Q q 0 0 0 rg BT 56.17 342.60 Td ( failur) Tj ET Q q 0 0 0 rg BT 82.38 342.60 Td (e of any of our) Tj ET Q q 0 0 0 rg BT 143.86 342.60 Td ( management information systems or) Tj ET Q q 0 0 0 rg BT 301.99 342.60 Td ( a data security br) Tj ET Q q 0 0 0 rg BT 379.57 342.60 Td (each with r) Tj ET Q q 0 0 0 rg BT 427.16 342.60 Td (egard to personally identifiable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.60 Td (information \("PII"\) about our) Tj ET Q q 0 0 0 rg BT 179.04 330.60 Td ( customers or) Tj ET Q q 0 0 0 rg BT 236.61 330.60 Td ( employees could have a material adverse effect on our) Tj ET Q q 0 0 0 rg BT 468.88 330.60 Td ( business, financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.60 Td (condition, r) Tj ET Q q 0 0 0 rg BT 98.77 318.60 Td (esults of operations, and cash flows.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 297.60 Td (W) Tj ET Q q 0 0 0 rg BT 73.14 297.60 Td (e depend on the ef) Tj ET Q q 0 0 0 rg BT 146.26 297.60 Td (ficient operation of our information systems and those of our third party service providers. ) Tj ET Q q 0 0 0 rg BT 510.15 297.60 Td (W) Tj ET Q q 0 0 0 rg BT 518.79 297.60 Td (e rely on ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 285.60 Td (management information systems at our dealerships in all aspects of our sales and service ef) Tj ET Q q 0 0 0 rg BT 418.09 285.60 Td (forts, as well in the preparation of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 273.60 Td (our consolidated financial and operating data. ) Tj ET Q q 0 0 0 rg BT 234.16 273.60 Td (All of our dealerships currently operate on a common DMS. Our business could ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 261.60 Td (be significantly disrupted if \(i\) the DMS fails to integrate with other third-party management information systems, customer ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 249.60 Td (relations management tools or other software, or to the extent any of these systems become unavailable to us for an extended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 237.60 Td (period of time, or \(ii\) our relationship with our DMS provider or any other third-party provider deteriorates. ) Tj ET Q q 0 0 0 rg BT 482.44 237.60 Td (Additionally) Tj ET Q q 0 0 0 rg BT 532.35 237.60 Td (, any ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 225.60 Td (disruption to access and connectivity of our information systems due to natural disasters, power loss or other reasons could ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 213.60 Td (disrupt our business operations, impact sales and results of operations, expose us to customer or third party claims, or result in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 201.60 Td (adverse publicity) Tj ET Q q 0 0 0 rg BT 117.44 201.60 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 180.60 Td (Additionally) Tj ET Q q 0 0 0 rg BT 114.40 180.60 Td (, in the ordinary course of business, we and our partners receive significant PII about our customers in order to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 168.60 Td (complete the sale or service of a vehicle and related products. ) Tj ET Q q 0 0 0 rg BT 298.10 168.60 Td (W) Tj ET Q q 0 0 0 rg BT 306.74 168.60 Td (e also receive PII from our employees. Numerous state and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 156.60 Td (federal regulations, as well as payment card industry and other vendor standards, govern the collection and maintenance of PII ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 144.60 Td (from consumers and other individuals. ) Tj ET Q q 0 0 0 rg BT 205.96 144.60 Td (W) Tj ET Q q 0 0 0 rg BT 214.59 144.60 Td (e believe the automotive dealership industry is a particular tar) Tj ET Q q 0 0 0 rg BT 461.27 144.60 Td (get of identity thieves, as ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 132.60 Td (there are numerous opportunities for a data security breach, including cyber) Tj ET Q q 0 0 0 rg BT 352.24 132.60 Td (-security breaches, bur) Tj ET Q q 0 0 0 rg BT 442.85 132.60 Td (glary) Tj ET Q q 0 0 0 rg BT 462.75 132.60 Td (, lost or misplaced data, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 120.60 Td (scams, or misappropriation of data by employees, vendors or unaf) Tj ET Q q 0 0 0 rg BT 313.42 120.60 Td (filiated third parties. Because cyber) Tj ET Q q 0 0 0 rg BT 455.10 120.60 Td (-attacks are increasing in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 108.60 Td (number and sophistication and despite the security measures we have in place and any additional measures we may implement ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 96.60 Td (or adopt in the future, our facilities and systems, and those of our third-party service providers, could be vulnerable to security ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 84.60 Td (breaches, computer viruses, lost or misplaced data, programming errors, scams, bur) Tj ET Q q 0 0 0 rg BT 383.39 84.60 Td (glary) Tj ET Q q 0 0 0 rg BT 403.28 84.60 Td (, human errors, acts of vandalism, and/) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 72.60 Td (or other events. ) Tj ET Q q 0 0 0 rg BT 115.87 72.60 Td (Alleged or actual data security breaches can increase costs of doing business, negatively af) Tj ET Q q 0 0 0 rg BT 478.88 72.60 Td (fect customer ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 60.60 Td (satisfaction and loyalty) Tj ET Q q 0 0 0 rg BT 141.60 60.60 Td (, expose us to negative publicity) Tj ET Q q 0 0 0 rg BT 269.82 60.60 Td (, individual claims or consumer class actions, administrative, civil or ) Tj ET Q endstream endobj 43 0 obj <>] /Rotate 0 /Contents 44 0 R>> endobj 44 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 771.18505859375 m 125.1953125 771.18505859375 l s q 0 0 1 rg BT 50.00 772.75 Td (T) Tj ET Q q 0 0 1 rg BT 55.75 772.75 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 29.10 Td (21) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 744.60 Td (criminal investigations or actions, and infringe on proprietary information, any of which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 533.88 744.60 Td (fect on ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 732.60 Td (our business, financial condition, or results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 711.60 Td (Our) Tj ET Q q 0 0 0 rg BT 82.10 711.60 Td ( operations ar) Tj ET Q q 0 0 0 rg BT 141.36 711.60 Td (e subject to extensive governmental laws and r) Tj ET Q q 0 0 0 rg BT 339.20 711.60 Td (egulations. If we ar) Tj ET Q q 0 0 0 rg BT 420.68 711.60 Td (e found to be in purported ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 699.60 Td (violation of or) Tj ET Q q 0 0 0 rg BT 109.31 699.60 Td ( subject to liabilities under) Tj ET Q q 0 0 0 rg BT 222.47 699.60 Td ( any of these laws or) Tj ET Q q 0 0 0 rg BT 308.67 699.60 Td ( r) Tj ET Q q 0 0 0 rg BT 315.43 699.60 Td (egulations, or) Tj ET Q q 0 0 0 rg BT 373.03 699.60 Td ( if new laws or) Tj ET Q q 0 0 0 rg BT 434.50 699.60 Td ( r) Tj ET Q q 0 0 0 rg BT 441.26 699.60 Td (egulations ar) Tj ET Q q 0 0 0 rg BT 496.36 699.60 Td (e enacted that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 687.60 Td (adversely affect our) Tj ET Q q 0 0 0 rg BT 133.73 687.60 Td ( operations, our) Tj ET Q q 0 0 0 rg BT 201.05 687.60 Td ( business, our) Tj ET Q q 0 0 0 rg BT 258.95 687.60 Td ( r) Tj ET Q q 0 0 0 rg BT 265.71 687.60 Td (eputation, financial condition, r) Tj ET Q q 0 0 0 rg BT 400.26 687.60 Td (esults of operations, and pr) Tj ET Q q 0 0 0 rg BT 515.93 687.60 Td (ospects ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 675.60 Td (could suffer) Tj ET Q q 0 0 0 rg BT 99.41 675.60 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 654.60 Td (The automotive retail industry) Tj ET Q q 0 0 0 rg BT 185.21 654.60 Td (, including our facilities and operations, is subject to a wide range of federal, state, and local ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 642.60 Td (laws and regulations, such as those relating to motor vehicle sales, retail installment sales, leasing, finance and insurance, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 630.60 Td (marketing, licensing, consumer protection, consumer privacy) Tj ET Q q 0 0 0 rg BT 293.78 630.60 Td (, escheatment, anti-money laundering, environmental, vehicle ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 618.60 Td (emissions and fuel economy) Tj ET Q q 0 0 0 rg BT 162.44 618.60 Td (, and health and safety) Tj ET Q q 0 0 0 rg BT 251.48 618.60 Td (. In addition, with respect to employment practices, we are subject to various ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 606.60 Td (laws and regulations, including complex federal, state, and local wage and hour and anti-discrimination laws. ) Tj ET Q q 0 0 0 rg BT 488.91 606.60 Td (The violation of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 594.60 Td (the laws or regulations to which we are subject could result in administrative, civil, or criminal sanctions against us, which may ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 582.60 Td (include a cease and desist order against the subject operations or even revocation or suspension of our license to operate the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 570.60 Td (subject business, as well as significant fines and penalties. ) Tj ET Q q 0 0 0 rg BT 284.54 570.60 Td (V) Tj ET Q q 0 0 0 rg BT 291.17 570.60 Td (iolation of certain laws and regulations to which we are subject ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 558.60 Td (may also subject us to consumer class action or other lawsuits or governmental investigations and adverse publicity) Tj ET Q q 0 0 0 rg BT 510.96 558.60 Td (. ) Tj ET Q q 0 0 0 rg BT 515.78 558.60 Td (W) Tj ET Q q 0 0 0 rg BT 524.42 558.60 Td (e ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 546.60 Td (currently devote significant resources to comply with applicable federal, state, and local regulation of health, safety) Tj ET Q q 0 0 0 rg BT 510.34 546.60 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 534.60 Td (environmental, zoning, and land use regulations, and we may need to spend additional time, ef) Tj ET Q q 0 0 0 rg BT 427.55 534.60 Td (fort, and money to keep our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 522.60 Td (operations and existing or acquired facilities in compliance therewith.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 501.60 Td (In addition, there is a risk that our employees could engage in misconduct that violates the laws or regulations to which we ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 489.60 Td (are subject. It is not always possible to detect or deter employee misconduct, and the precautions we take to detect and prevent ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 477.60 Td (this activity may not be ef) Tj ET Q q 0 0 0 rg BT 153.46 477.60 Td (fective in all cases. If any of our employees were to engage in misconduct or were to be accused of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 465.60 Td (such misconduct, our business and reputation could be adversely af) Tj ET Q q 0 0 0 rg BT 318.69 465.60 Td (fected.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 444.60 Td (The Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 133.38 444.60 Td (Act, which was signed into law on July 21, 2010, established the CFPB, an independent federal agency ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 432.60 Td (funded by the United States Federal Reserve with broad regulatory powers and limited oversight from the United States ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 420.60 Td (Congress. ) Tj ET Q q 0 0 0 rg BT 91.17 420.60 Td (Although automotive dealers are generally excluded, the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 370.80 420.60 Td (Act could lead to additional, indirect regulation ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 408.60 Td (of automotive dealers, in particular) Tj ET Q q 0 0 0 rg BT 189.32 408.60 Td (, their sale and marketing of finance and insurance products, through its regulation of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 396.60 Td (automotive finance companies and other financial institutions. In addition, the CFPB possesses supervisory authority with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 384.60 Td (respect to certain non-bank lenders, including automotive finance companies, participating in automotive financing. ) Tj ET Q q 0 0 0 rg BT 515.28 384.60 Td (The Dodd-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 372.60 Td (Frank ) Tj ET Q q 0 0 0 rg BT 74.78 372.60 Td (Act also provided the FTC with new and expanded authority regarding automotive dealers. Since then, the FTC has been ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 360.60 Td (gathering information on consumer protection issues through roundtables, public comments and consumer surveys.? Tj ET Q q 0 0 0 rg BT 512.83 360.60 Td (The FTC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 348.60 Td (may exercise its additional rule-making authority to expand consumer protection regulations relating to the sale, financing and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 336.60 Td (leasing of motor vehicles. In 2014, the FTC implemented an enforcement initiative relating to the advertising practices of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 324.60 Td (automotive dealers. In connection therewith, in May 2016, we signed a consent order with the FTC to settle allegations that in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 312.60 Td (certain instances our advertisements did not adequately disclose information about used vehicles with open safety recalls. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 300.60 Td (Under the consent order) Tj ET Q q 0 0 0 rg BT 145.45 300.60 Td (, we did not agree to make any payments or admit wrong-doing, but we did agree to make certain ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 288.60 Td (disclosures in marketing materials and at the point of sale and comply with certain record-keeping obligations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 267.60 Td (Continued pressure from the CFPB, FTC, and other federal agencies could lead to significant changes in the manner that ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 255.60 Td (dealers are compensated for arranging customer financing, and while it is dif) Tj ET Q q 0 0 0 rg BT 356.43 255.60 Td (ficult to predict how any such changes might ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 243.60 Td (impact us, any adverse changes could have a material adverse impact on our finance and insurance business and results of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 231.60 Td (operations. Furthermore, we expect that new laws and regulations, particularly at the federal level, in other areas may be ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 219.60 Td (enacted, which could also materially adversely impact our business.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 198.60 Td (Environmental laws and regulations govern, among other things, dischar) Tj ET Q q 0 0 0 rg BT 354.81 198.60 Td (ges into the air and water) Tj ET Q q 0 0 0 rg BT 455.20 198.60 Td (, storage of petroleum ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 186.60 Td (substances and chemicals, the handling and disposal of solid and hazardous wastes, investigation and remediation of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 174.60 Td (contamination, and otherwise protective of health, safety and the environment. Similar to many of our competitors, we have ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 162.60 Td (incurred and expect to continue to incur capital and operating expenditures and other costs to comply with such federal and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 150.60 Td (state statutes. In addition, we may become subject to broad liabilities arising out of contamination at our currently and formerly ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 138.60 Td (owned or operated facilities, at locations to which hazardous substances were transported from such facilities, and at such ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 126.60 Td (locations related to entities formerly af) Tj ET Q q 0 0 0 rg BT 204.54 126.60 Td (filiated with us. For such potential liabilities, we believe we are entitled to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 114.60 Td (indemnification from other entities. However) Tj ET Q q 0 0 0 rg BT 230.43 114.60 Td (, we cannot assure you that such entities will view their obligations as we do or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 102.60 Td (will be able or willing to satisfy them. Failure to comply with applicable laws and regulations, or significant additional ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 90.60 Td (expenditures required to maintain compliance therewith, could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 406.95 90.60 Td (fect on our business, results of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 78.60 Td (operations, financial condition, or cash flows.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 57.60 Td (A) Tj ET Q q 0 0 0 rg BT 71.17 57.60 Td ( significant judgment against us or the imposition of a significant fine could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 481.15 57.60 Td (fect on our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 45.60 Td (business, financial condition and future prospects. ) Tj ET Q q 0 0 0 rg BT 252.05 45.60 Td (W) Tj ET Q q 0 0 0 rg BT 260.69 45.60 Td (e further expect that, from time to time, new laws and regulations, ) Tj ET Q endstream endobj 45 0 obj <>] /Rotate 0 /Contents 46 0 R>> endobj 46 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 771.18505859375 m 125.1953125 771.18505859375 l s q 0 0 1 rg BT 50.00 772.75 Td (T) Tj ET Q q 0 0 1 rg BT 55.75 772.75 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 29.10 Td (22) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 744.60 Td (particularly in the environmental area will be enacted, and compliance with such laws, or penalties for failure to comply) Tj ET Q q 0 0 0 rg BT 529.23 744.60 Td (, could ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 732.60 Td (significantly increase our costs. For example, vehicle manufacturers are subject to government-mandated fuel economy and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 720.60 Td (greenhouse gas emission standards, which continue to change and become more stringent over time. Specifically) Tj ET Q q 0 0 0 rg BT 500.38 720.60 Td (, vehicle ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 708.60 Td (manufacturers are subject to corporate average fuel economy standards \("CAFE"\) for passenger cars and light trucks. Failure of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (a manufacturer to develop passenger vehicles and light trucks that meet CAFE and/or greenhouse gas emission standards could ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (subject the manufacturer to substantial penalties, increase the cost of vehicles sold to us, and adversely af) Tj ET Q q 0 0 0 rg BT 470.29 684.60 Td (fect our ability to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (market and sell vehicles to meet consumer needs and desires, which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 452.77 672.60 Td (fect on our business, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 660.60 Td (results of operations, financial condition, or cash flows.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 639.60 Td (W) Tj ET Q q 0 0 0 rg BT 58.95 639.60 Td (e ar) Tj ET Q q 0 0 0 rg BT 75.14 639.60 Td (e subject to risks r) Tj ET Q q 0 0 0 rg BT 153.28 639.60 Td (elated to the pr) Tj ET Q q 0 0 0 rg BT 217.81 639.60 Td (ovision of employee health car) Tj ET Q q 0 0 0 rg BT 346.50 639.60 Td (e benefits, which could have a material adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 627.60 Td (effect on our) Tj ET Q q 0 0 0 rg BT 103.19 627.60 Td ( business, financial condition, r) Tj ET Q q 0 0 0 rg BT 235.26 627.60 Td (esults of operations, and cash flows. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 606.60 Td (W) Tj ET Q q 0 0 0 rg BT 71.14 606.60 Td (e use a combination of insurance and self-insurance for health care plans. ) Tj ET Q q 0 0 0 rg BT 366.67 606.60 Td (W) Tj ET Q q 0 0 0 rg BT 375.31 606.60 Td (e record expenses under those plans based on ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 594.60 Td (estimates of the costs of expected claims, administrative costs, stop-loss insurance premiums, and expected health care trends. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 582.60 Td (Actual costs under these plans are subject to variability that is dependent upon participant enrollment, demographics, and the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 570.60 Td (actual costs of claims made. Negative trends in any of these areas could cause us to incur additional unplanned health care ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 558.60 Td (costs, which could adversely impact our business, financial condition, results of operations, and cash flows. In addition, if ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 546.60 Td (enrollment in our health care plans increases significantly) Tj ET Q q 0 0 0 rg BT 279.60 546.60 Td (, the additional costs that we will incur may be significant enough to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 534.60 Td (materially af) Tj ET Q q 0 0 0 rg BT 100.13 534.60 Td (fect our business, financial condition, results of operations, and cash flows. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 513.60 Td (W) Tj ET Q q 0 0 0 rg BT 58.95 513.60 Td (e ar) Tj ET Q q 0 0 0 rg BT 75.14 513.60 Td (e, and expect to continue to be, subject to legal and administrative pr) Tj ET Q q 0 0 0 rg BT 368.28 513.60 Td (oceedings, which, if the outcomes ar) Tj ET Q q 0 0 0 rg BT 521.14 513.60 Td (e adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 501.60 Td (to us, could have a material adverse effect on our) Tj ET Q q 0 0 0 rg BT 258.17 501.60 Td ( business, financial condition, r) Tj ET Q q 0 0 0 rg BT 390.24 501.60 Td (esults of operations, and cash flows.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 480.60 Td (W) Tj ET Q q 0 0 0 rg BT 73.14 480.60 Td (e are involved and expect to continue to be involved in numerous legal proceedings arising out of the conduct of our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 468.60 Td (business, including litigation with customers, employment-related lawsuits, class actions, purported class actions, and actions ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 456.60 Td (brought by governmental authorities. ) Tj ET Q q 0 0 0 rg BT 200.12 456.60 Td (W) Tj ET Q q 0 0 0 rg BT 208.76 456.60 Td (e do not believe that the ultimate resolution of any known matters will have a material ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 444.60 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 90.13 444.60 Td (fect on our business, financial condition, results of operations, or cash flows. However) Tj ET Q q 0 0 0 rg BT 435.75 444.60 Td (, the results of these matters ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 432.60 Td (cannot be predicted with certainty) Tj ET Q q 0 0 0 rg BT 184.91 432.60 Td (, and an unfavorable resolution of one or more of these matters could have a material adverse ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 420.60 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 420.60 Td (fect on our business, financial condition, results of operations and cash flows.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 399.60 Td (Pr) Tj ET Q q 0 0 0 rg BT 59.87 399.60 Td (operty loss or) Tj ET Q q 0 0 0 rg BT 117.45 399.60 Td ( other) Tj ET Q q 0 0 0 rg BT 142.54 399.60 Td ( uninsur) Tj ET Q q 0 0 0 rg BT 178.22 399.60 Td (ed liabilities could have a material adverse impact on our) Tj ET Q q 0 0 0 rg BT 421.63 399.60 Td ( r) Tj ET Q q 0 0 0 rg BT 428.39 399.60 Td (esults of operations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 378.60 Td (W) Tj ET Q q 0 0 0 rg BT 73.14 378.60 Td (e are subject to substantial risk of property loss due to the significant concentration of property at dealership locations, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 366.60 Td (including vehicles and parts. ) Tj ET Q q 0 0 0 rg BT 166.23 366.60 Td (W) Tj ET Q q 0 0 0 rg BT 174.87 366.60 Td (e have historically experienced business interruptions from time to time at several of our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 354.60 Td (dealerships, due to actual or threatened adverse weather conditions or natural disasters, such as hurricanes, tornadoes, floods, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 342.60 Td (and hail storms, or other extraordinary events. Concentration of property at dealership locations also makes the automotive ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 330.60 Td (retail business particularly vulnerable to theft, fraud, and misappropriation of assets. Illegal or unethical conduct by employees, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 318.60 Td (customers, vendors, and unaf) Tj ET Q q 0 0 0 rg BT 166.23 318.60 Td (filiated third parties can result in loss of assets, disrupt operations, impact brand reputation, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 306.60 Td (jeopardize manufacturer and other relationships, result in the imposition of fines or penalties, and subject us to governmental ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 294.60 Td (investigations or lawsuits. ) Tj ET Q q 0 0 0 rg BT 155.98 294.60 Td (While we maintain insurance to protect against a number of losses, this insurance coverage often ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 282.60 Td (contains significant deductibles. In addition, we "self-insure" a portion of our potential liabilities, meaning we do not carry ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 270.60 Td (insurance from a third-party for such liabilities, and are wholly responsible for any related losses including for certain potential ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 258.60 Td (liabilities that some states prohibit the maintenance of insurance to protect against. In certain instances, our insurance may not ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 246.60 Td (fully cover a loss depending on the applicable deductible or the magnitude and nature of the claim. ) Tj ET Q q 0 0 0 rg BT 446.59 246.60 Td (Additionally) Tj ET Q q 0 0 0 rg BT 496.50 246.60 Td (, changes in the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 234.60 Td (cost or availability of insurance in the future could substantially increase our costs to maintain our current level of coverage or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 222.60 Td (could cause us to reduce our insurance coverage and increase our self-insured risks. ) Tj ET Q q 0 0 0 rg BT 386.41 222.60 Td (T) Tj ET Q q 0 0 0 rg BT 391.82 222.60 Td (o the extent we incur significant ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 210.60 Td (additional costs for insurance, suf) Tj ET Q q 0 0 0 rg BT 184.01 210.60 Td (fer losses that are not covered by in-force insurance or suf) Tj ET Q q 0 0 0 rg BT 415.96 210.60 Td (fer losses for which we are self-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 198.60 Td (insured, our financial condition, results of operations, or cash flows could be materially adversely impacted.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 177.60 Td (A) Tj ET Q q 0 0 0 rg BT 56.17 177.60 Td ( decline in our) Tj ET Q q 0 0 0 rg BT 116.82 177.60 Td ( cr) Tj ET Q q 0 0 0 rg BT 128.02 177.60 Td (edit rating or) Tj ET Q q 0 0 0 rg BT 184.50 177.60 Td ( a general disruption in the cr) Tj ET Q q 0 0 0 rg BT 310.98 177.60 Td (edit markets could negatively impact our) Tj ET Q q 0 0 0 rg BT 485.50 177.60 Td ( liquidity and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 165.60 Td (ability to conduct our) Tj ET Q q 0 0 0 rg BT 141.27 165.60 Td ( operations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 144.60 Td (A) Tj ET Q q 0 0 0 rg BT 71.17 144.60 Td ( deterioration of our credit rating, or a general disruption in the credit markets, could limit our ability to obtain credit on ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 132.60 Td (terms acceptable to us, or at all. In addition, uncertain economic conditions or the re-pricing of certain credit risks may make it ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 120.60 Td (more dif) Tj ET Q q 0 0 0 rg BT 83.47 120.60 Td (ficult for us to obtain one or more types of funding in the amounts, or at rates considered acceptable to us, at any given ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 108.60 Td (time. Our inability to access necessary or desirable funding, or to enter into certain related transactions, at times and at costs ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 96.60 Td (deemed appropriate by us, could have a negative impact on our liquidity and our ability to conduct our operations. ) Tj ET Q q 0 0 0 rg BT 508.54 96.60 Td (Any of these ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 84.60 Td (developments could also reduce the ability or willingness of the financial institutions that have extended credit commitments to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 72.60 Td (us, or that have entered into hedge or similar transactions with us, to fulfill their obligations to us, which also could have a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 60.60 Td (material adverse ef) Tj ET Q q 0 0 0 rg BT 125.38 60.60 Td (fect on our liquidity and our ability to conduct our operations.) Tj ET Q endstream endobj 47 0 obj <>] /Rotate 0 /Contents 48 0 R>> endobj 48 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 771.18505859375 m 125.1953125 771.18505859375 l s q 0 0 1 rg BT 50.00 772.75 Td (T) Tj ET Q q 0 0 1 rg BT 55.75 772.75 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 29.10 Td (23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 744.75 Td (W) Tj ET Q q 0 0 0 rg BT 58.95 744.75 Td (e ar) Tj ET Q q 0 0 0 rg BT 75.14 744.75 Td (e subject to risks of doing business with manufactur) Tj ET Q q 0 0 0 rg BT 296.10 744.75 Td (ers that pr) Tj ET Q q 0 0 0 rg BT 340.91 744.75 Td (oduce vehicles outside of the United States ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 732.75 Td (including import pr) Tj ET Q q 0 0 0 rg BT 133.78 732.75 Td (oduct r) Tj ET Q q 0 0 0 rg BT 164.43 732.75 Td (estrictions or) Tj ET Q q 0 0 0 rg BT 220.06 732.75 Td ( limitations, for) Tj ET Q q 0 0 0 rg BT 285.71 732.75 Td (eign trade risks, and curr) Tj ET Q q 0 0 0 rg BT 394.13 732.75 Td (ency valuations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 711.75 Td (A) Tj ET Q q 0 0 0 rg BT 71.17 711.75 Td ( portion of our business involves the sale of vehicles, parts or vehicles composed of parts that are manufactured outside ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 699.75 Td (the United States. ) Tj ET Q q 0 0 0 rg BT 122.27 699.75 Td (As a result, our operations are subject to risks of doing business outside of the United States and importing ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 687.75 Td (merchandise, including import duties, exchange rates, trade restrictions, work stoppages, natural or man-made disasters, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 675.75 Td (general political and socio-economic conditions in other countries. ) Tj ET Q q 0 0 0 rg BT 318.41 675.75 Td (The United States or the countries from which our products ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 663.75 Td (are imported may) Tj ET Q q 0 0 0 rg BT 119.38 663.75 Td (, from time to time, impose new quotas, duties, tarif) Tj ET Q q 0 0 0 rg BT 326.66 663.75 Td (fs or other restrictions or limitations, or adjust presently ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 651.75 Td (prevailing quotas, duties, or tarif) Tj ET Q q 0 0 0 rg BT 179.84 651.75 Td (fs, which may af) Tj ET Q q 0 0 0 rg BT 246.31 651.75 Td (fect our operations and our ability to purchase imported vehicles and/or parts ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 639.75 Td (at reasonable prices. Relative weakness of the U.S. dollar against foreign currencies in the future may result in an increase in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 627.75 Td (costs to us and in the retail price of such vehicles or parts, which could discourage consumers from purchasing such vehicles ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 615.75 Td (and adversely impact our revenues and profitability) Tj ET Q q 0 0 0 rg BT 254.89 615.75 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.75 Td (If we ar) Tj ET Q q 0 0 0 rg BT 82.64 594.75 Td (e unable to acquir) Tj ET Q q 0 0 0 rg BT 159.41 594.75 Td (e and successfully integrate additional dealerships into our) Tj ET Q q 0 0 0 rg BT 408.96 594.75 Td ( business, our) Tj ET Q q 0 0 0 rg BT 466.86 594.75 Td ( r) Tj ET Q q 0 0 0 rg BT 473.62 594.75 Td (evenue and earnings ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.75 Td (gr) Tj ET Q q 0 0 0 rg BT 58.76 582.75 Td (owth may be adversely affected.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 561.75 Td (W) Tj ET Q q 0 0 0 rg BT 73.14 561.75 Td (e believe that the automotive retailing industry is a mature industry whose sales are significantly impacted by the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 549.75 Td (prevailing economic climate, both nationally and in local markets. ) Tj ET Q q 0 0 0 rg BT 316.37 549.75 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 365.70 549.75 Td (, we believe that our future growth depends in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 537.75 Td (part on our ability to manage expansion, control costs in our operations and acquire and ef) Tj ET Q q 0 0 0 rg BT 410.33 537.75 Td (fectively integrate acquired ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 525.75 Td (dealerships into our or) Tj ET Q q 0 0 0 rg BT 139.02 525.75 Td (ganization. ) Tj ET Q q 0 0 0 rg BT 185.49 525.75 Td (When seeking to acquire other dealerships, we often compete with several other national, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 513.75 Td (regional and local dealership groups, and other strategic and financial buyers, some of which may have greater financial ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 501.75 Td (resources than us. Competition for attractive acquisition tar) Tj ET Q q 0 0 0 rg BT 286.47 501.75 Td (gets may result in fewer acquisition opportunities for us and we may ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 489.75 Td (have to for) Tj ET Q q 0 0 0 rg BT 92.63 489.75 Td (go acquisition opportunities to the extent we cannot negotiate such acquisitions on acceptable terms.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 468.75 Td (W) Tj ET Q q 0 0 0 rg BT 73.14 468.75 Td (e also face additional risks commonly encountered with growth through acquisitions. ) Tj ET Q q 0 0 0 rg BT 415.66 468.75 Td (These risks include, but are not ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 456.75 Td (limited to: \(i\) failing to obtain manufacturers' consents to acquisitions of additional franchises; \(ii\) incurring significant ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 444.75 Td (transaction-related costs for both completed and failed acquisitions; \(iii\) incurring significantly higher capital expenditures and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 432.75 Td (operating expenses; \(iv\) failing to integrate the operations and personnel of the acquired dealerships and impairing relationships ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 420.75 Td (with employees; \(v\) incorrectly valuing entities to be acquired or incurring undisclosed liabilities at acquired dealerships; \(vi\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 408.75 Td (disrupting our ongoing business and diverting our management resources to newly acquired dealerships; \(vii\) failing to achieve ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 396.75 Td (expected performance levels; and \(viii\) impairing relationships with manufacturers and customers as a result of changes in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 384.75 Td (management.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 363.75 Td (W) Tj ET Q q 0 0 0 rg BT 73.14 363.75 Td (e may not adequately anticipate all the demands that our growth will impose on our personnel, procedures and structures, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 351.75 Td (including our financial and reporting control systems, data processing systems, and management structure. Moreover) Tj ET Q q 0 0 0 rg BT 517.31 351.75 Td (, our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 339.75 Td (failure to retain qualified management personnel at any acquired dealership may increase the risks associated with integrating ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 327.75 Td (the acquired dealership. If we cannot adequately anticipate and respond to these demands, we may fail to realize acquisition ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 315.75 Td (syner) Tj ET Q q 0 0 0 rg BT 70.98 315.75 Td (gies and our resources will be focused on incorporating new operations into our structure rather than on areas that may be ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 303.75 Td (more profitable.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.75 Td (W) Tj ET Q q 0 0 0 rg BT 58.95 282.75 Td (e ar) Tj ET Q q 0 0 0 rg BT 75.14 282.75 Td (e a holding company and as a r) Tj ET Q q 0 0 0 rg BT 207.49 282.75 Td (esult ar) Tj ET Q q 0 0 0 rg BT 239.25 282.75 Td (e dependent on our) Tj ET Q q 0 0 0 rg BT 321.02 282.75 Td ( operating subsidiaries to generate sufficient cash and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.75 Td (distribute cash to us to service our) Tj ET Q q 0 0 0 rg BT 195.42 270.75 Td ( indebtedness and fund our) Tj ET Q q 0 0 0 rg BT 311.39 270.75 Td ( ongoing operations. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 249.75 Td (Our ability to make payments on our indebtedness and fund our ongoing operations depends on our operating subsidiaries' ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 237.75 Td (ability to generate cash in the future and distribute that cash to us. It is possible that our subsidiaries may not generate cash from ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 225.75 Td (operations in an amount suf) Tj ET Q q 0 0 0 rg BT 160.41 225.75 Td (ficient to enable us to service our indebtedness. In addition, many of our subsidiaries are required to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 213.75 Td (comply with the provisions of franchise agreements, dealer agreements, other agreements with manufacturers, mortgages, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 201.75 Td (credit facility providers. Many of these agreements contain minimum working capital or net worth requirements, and are ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 189.75 Td (subject to change at least annually) Tj ET Q q 0 0 0 rg BT 185.75 189.75 Td (. ) Tj ET Q q 0 0 0 rg BT 190.19 189.75 Td (Although the requirements contained in these agreements did not restrict our subsidiaries ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 177.75 Td (from distributing cash to us as of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 183.65 177.75 Td (December?1, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 262.23 177.75 Td (, unexpected changes to our franchise agreements, dealer agreements, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 165.75 Td (other agreements with manufacturers could require us to alter the manner in which we distribute or use cash. If our operating ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 153.75 Td (subsidiaries are unable to generate and distribute suf) Tj ET Q q 0 0 0 rg BT 258.97 153.75 Td (ficient cash to us to service our indebtedness and fund our ongoing ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 141.75 Td (operations, our financial condition may be materially adversely af) Tj ET Q q 0 0 0 rg BT 312.83 141.75 Td (fected.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 120.75 Td (Goodwill and manufactur) Tj ET Q q 0 0 0 rg BT 159.89 120.75 Td (er) Tj ET Q q 0 0 0 rg BT 168.59 120.75 Td ( franchise rights comprise a significant portion of our) Tj ET Q q 0 0 0 rg BT 396.17 120.75 Td ( total assets. ) Tj ET Q q 0 0 0 rg BT 449.87 120.75 Td (W) Tj ET Q q 0 0 0 rg BT 459.32 120.75 Td (e must test our) Tj ET Q q 0 0 0 rg BT 522.18 120.75 Td ( goodwill ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 108.75 Td (and manufactur) Tj ET Q q 0 0 0 rg BT 118.49 108.75 Td (er) Tj ET Q q 0 0 0 rg BT 127.19 108.75 Td ( franchise rights for) Tj ET Q q 0 0 0 rg BT 211.72 108.75 Td ( impairment at least annually) Tj ET Q q 0 0 0 rg BT 336.72 108.75 Td (, which could r) Tj ET Q q 0 0 0 rg BT 399.88 108.75 Td (esult in a material, non-cash write-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 96.75 Td (down of goodwill or) Tj ET Q q 0 0 0 rg BT 134.05 96.75 Td ( manufactur) Tj ET Q q 0 0 0 rg BT 186.92 96.75 Td (er) Tj ET Q q 0 0 0 rg BT 195.62 96.75 Td ( franchise rights and could have a material adverse effect on our) Tj ET Q q 0 0 0 rg BT 469.57 96.75 Td ( r) Tj ET Q q 0 0 0 rg BT 476.33 96.75 Td (esults of operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 84.75 Td (and stockholders' equity) Tj ET Q q 0 0 0 rg BT 153.41 84.75 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 63.75 Td (Our principal intangible assets are goodwill and our rights under our franchise agreements with vehicle manufacturers.?) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 51.75 Td (Goodwill and indefinite-lived intangible assets, including manufacturer franchise rights, are subject to impairment assessments ) Tj ET Q endstream endobj 49 0 obj <>] /Rotate 0 /Contents 50 0 R>> endobj 50 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 771.18505859375 m 125.1953125 771.18505859375 l s q 0 0 1 rg BT 50.00 772.75 Td (T) Tj ET Q q 0 0 1 rg BT 55.75 772.75 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 29.10 Td (24) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 744.60 Td (at least annually \(or more frequently when events or changes in circumstances indicate that an impairment may have occurred\), ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 732.60 Td (by applying a qualitative or quantitative assessment. ) Tj ET Q q 0 0 0 rg BT 260.56 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 267.23 732.60 Td ( decrease in our market capitalization or profitability increases the risk of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 720.60 Td (goodwill impairment. ) Tj ET Q q 0 0 0 rg BT 138.47 720.60 Td (The fair value of our manufacturer franchise rights is determined by discounting a sub-set of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 708.60 Td (projected cash flows at a dealership that we attribute to the value of the franchise. Changes to the business mix or declining ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (cash flows in a dealership increase the risk of impairment. ) Tj ET Q q 0 0 0 rg BT 284.15 696.60 Td (An impairment loss could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 494.45 696.60 Td (fect on our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (results of operations and stockholders' equity) Tj ET Q q 0 0 0 rg BT 229.23 684.60 Td (. During 2017, we recorded non-cash impairment char) Tj ET Q q 0 0 0 rg BT 448.42 684.60 Td (ges of?5.1 million \($3.2 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (million after) Tj ET Q q 0 0 0 rg BT 99.01 672.60 Td (-tax\) associated with franchise rights recorded at certain dealerships. See Note? of the Notes to Consolidated ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 660.60 Td (Financial Statements for more information.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 636.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.25 636.60 Td (echnological advances, including incr) Tj ET Q q 0 0 0 rg BT 213.97 636.60 Td (eases in ride sharing applications, electric vehicles and autonomous vehicles in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 624.60 Td (the long-term could have a material adverse effect on our) Tj ET Q q 0 0 0 rg BT 293.43 624.60 Td ( business.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 600.60 Td ( ) Tj ET Q q 0 0 0 rg BT 61.82 600.60 Td (The automotive industry is predicted to experience change over the long-term. Shared vehicle services such as Uber and L) Tj ET Q q 0 0 0 rg BT 550.81 600.60 Td (yft ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 588.60 Td (provide consumers with increased choice in their personal mobility options. ) Tj ET Q q 0 0 0 rg BT 355.08 588.60 Td (The ef) Tj ET Q q 0 0 0 rg BT 380.72 588.60 Td (fect of these and similar mobility options on ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 576.60 Td (the retail automotive industry is uncertain, and may include lower levels of new vehicles sales, but with increasing miles driven, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 564.60 Td (which could require additional demand for vehicle maintenance. In addition, technological advances are facilitating the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 552.60 Td (development of driverless vehicles. ) Tj ET Q q 0 0 0 rg BT 193.44 552.60 Td (The eventual timing of availability of driverless vehicles is uncertain due to regulatory ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 540.60 Td (requirements, additional technological requirements, and uncertain consumer acceptance of these vehicles. ) Tj ET Q q 0 0 0 rg BT 478.59 540.60 Td (The ef) Tj ET Q q 0 0 0 rg BT 504.22 540.60 Td (fect of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 528.60 Td (driverless vehicles on the automotive retail industry is uncertain and could include changes in the level of new and used ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 516.60 Td (vehicles sales, the price of new vehicles, and the role of franchised dealers, any of which could materially adversely af) Tj ET Q q 0 0 0 rg BT 523.02 516.60 Td (fect our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 504.60 Td (business, financial condition and results of operations.?) Tj ET Q q 0 0 0 rg BT 271.50 504.60 Td (The widespread adoption of electric and battery powered vehicles also ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 492.60 Td (could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 178.42 492.60 Td (fect on the profitability of our parts and service business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 468.60 Td (Item 1B. Unr) Tj ET Q q 0 0 0 rg BT 105.70 468.60 Td (esolved Staff Comments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 447.60 Td (None.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 423.60 Td (Item 2. Pr) Tj ET Q q 0 0 0 rg BT 92.36 423.60 Td (operties) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 406.60 Td (W) Tj ET Q q 0 0 0 rg BT 73.14 406.60 Td (e lease our corporate headquarters, which is located at 2905 Premiere Parkway) Tj ET Q q 0 0 0 rg BT 387.36 406.60 Td (, NW) Tj ET Q q 0 0 0 rg BT 408.10 406.60 Td (, Suite 300, Duluth, Geor) Tj ET Q q 0 0 0 rg BT 508.75 406.60 Td (gia 30097. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 394.60 Td (As of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 73.94 394.60 Td (December?1, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 152.53 394.60 Td (, our operations encompassed ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.33 394.60 Td (80) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 283.33 394.60 Td ( franchised dealership locations throughout ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.56 394.60 Td (9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.56 394.60 Td ( states, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.21 394.60 Td (24) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 520.21 394.60 Td ( collision ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 382.60 Td (repair centers as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 346.10 292.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 346.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.00 346.10 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 346.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.00 346.10 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 346.10 21.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 346.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 346.10 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 346.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 346.10 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 318.10 292.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 318.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.00 318.10 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 318.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.00 318.10 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 318.10 21.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 318.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 318.10 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 318.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 318.10 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 290.10 292.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 290.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.00 290.10 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 290.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.00 290.10 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 290.10 21.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 290.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 290.10 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 290.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 290.10 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 262.10 292.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 262.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.00 262.10 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 262.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.00 262.10 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 262.10 21.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 262.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 262.10 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 262.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 262.10 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 234.10 292.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 234.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.00 234.10 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 234.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.00 234.10 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 234.10 21.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 234.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 234.10 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 234.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 234.10 50.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346 359.1 m 388 359.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 359.1 m 392 359.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 359.1 m 434 359.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 359.1 m 509 359.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 359.1 m 513 359.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 359.1 m 563 359.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 346.1 m 342 346.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346 346.1 m 388 346.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 346.1 m 434 346.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 346.1 m 509 346.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 346.1 m 563 346.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346 234.10000000000002 m 388 234.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346 221.10000000000002 m 388 221.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346 219.10000000000002 m 388 219.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 234.10000000000002 m 434 234.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 221.10000000000002 m 434 221.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 219.10000000000002 m 434 219.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 234.10000000000002 m 509 234.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 221.10000000000002 m 509 221.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 219.10000000000002 m 509 219.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 234.10000000000002 m 563 234.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 221.10000000000002 m 563 221.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 219.10000000000002 m 563 219.10000000000002 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 367.00 363.50 Td (Dealerships) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 436.50 363.36 Td (? Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.05 363.50 Td (Collision Repair) Tj ET Q q 0 0 0 rg BT 525.72 363.50 Td ( Centers) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 350.50 Td (Dealership Gr) Tj ET Q q 0 0 0 rg BT 107.08 350.50 Td (oup:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 352.70 350.50 Td (Owned) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.00 350.50 Td (Leased) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 436.50 350.36 Td (? Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.70 350.50 Td (Owned) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 524.00 350.50 Td (Leased) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 336.67 Td (Coggin ) Tj ET Q q 0 0 0 rg BT 84.17 336.67 Td (Automotive Group) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.15 336.67 Td (12) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.15 336.67 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.50 336.67 Td (\(a\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.15 336.67 Td (5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 336.67 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 322.67 Td (Courtesy ) Tj ET Q q 0 0 0 rg BT 90.83 322.67 Td (Autogroup) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.15 322.67 Td (5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.15 322.67 Td (3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.15 322.67 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.15 322.67 Td (? Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 308.67 Td (Crown ) Tj ET Q q 0 0 0 rg BT 81.95 308.67 Td (Automotive Company) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.15 308.67 Td (13) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.15 308.67 Td (5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.50 308.67 Td (\(b\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.15 308.67 Td (3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.15 308.67 Td (? Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 294.67 Td (David McDavid ) Tj ET Q q 0 0 0 rg BT 119.43 294.67 Td (Auto Group) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.15 294.67 Td (7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 294.67 Td (? Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.15 294.67 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 294.67 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 280.67 Td (Gray-Daniels ) Tj ET Q q 0 0 0 rg BT 108.59 280.67 Td (Auto Family) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.15 280.67 Td (? Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.15 280.67 Td (5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.50 280.67 Td (\(b\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 495.15 280.67 Td (? Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 280.67 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 266.67 Td (Hare ) Tj ET Q q 0 0 0 rg BT 74.15 266.67 Td (Automotive Group) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.15 266.67 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 266.67 Td (? Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 495.15 266.67 Td (? Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 266.67 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 252.67 Td (Nalley ) Tj ET Q q 0 0 0 rg BT 81.38 252.67 Td (Automotive Group) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.15 252.67 Td (16) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.15 252.67 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.15 252.67 Td (3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 252.67 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 238.67 Td (Plaza Motor Company) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.15 238.67 Td (6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.15 238.67 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.50 238.67 Td (\(b\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 495.15 238.67 Td (? Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 238.67 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 224.67 Td ( ) Tj ET Q q 0 0 0 rg BT 54.82 224.67 Td (T) Tj ET Q q 0 0 0 rg BT 60.23 224.67 Td (otal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.15 224.67 Td (61) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 224.67 Td (19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 4