Annual vehicle sales and profit projections

all annual numbers restated and check as of 06 10K but NOT RESTATED (06 and older) to reflect status
of disc ops as of 12/31/07 (07 10K) 2007 2008 2009E 2010E 2011E
co. disclosur e changed to r ound to $100,000
NEW VEHICLE DETAIL 2001 2002 2003 2004 2005 2006 2007 2008 2009E 2010E 2011E 1Q 2Q 3Q 4QE 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4QE 1QE 2QE 3QE 4QE 1QE 2QE 3QE 4QE
LUXURY
SS Revenue $892,073 $998,176 $1,055,347 $1,064,709 $1,095,400 $856,400 $660,700 $796,737 $910,244 $264,958 $281,828 $272,636 $275,978 $237,000 $240,400 $218,700 $160,300 $142,700 $164,000 $166,800 $187,200 $179,200 $197,700 $206,700 $213,137 $210,308 $221,918 $231,684 $246,333
Units 21,415 23,224 23,799 23,418 23,207 18,362 14,087 16,580 19,067 5,519 5,999 5,885 5,804 4,997 5,177 4,751 3,437 3,074 3,458 3,644 3,911 3,715 4,081 4,286 4,498 4,272 4,693 4,929 5,172
RPU $41,656 $42,980 $44,344 $45,465 $47,201 $46,640 $46,901 $48,055 $47,740 $48,008 $46,979 $46,327 $47,550 $47,428 $46,436 $46,032 $46,640 $46,856 $45,899 $45,739 $46,919 $47,793 $46,817 $46,197 $47,389 $49,226 $47,286 $47,005 $47,625
Implied COGS $813,878 $912,209 $969,676 $977,486 $1,008,600 $795,200 $607,600 $734,680 $840,987 $243,393 $259,496 $251,266 $254,445 $219,500 $222,600 $202,100 $151,000 $133,300 $148,800 $153,600 $171,900 $164,200 $182,700 $190,700 $197,080 $194,454 $204,621 $214,137 $227,775
COGS PU $38,005 $39,279 $40,744 $41,741 $43,461 $43,307 $43,132 $44,312 $44,108 $44,101 $43,257 $42,696 $43,840 $43,926 $42,998 $42,538 $43,934 $43,752 $42,741 $42,381 $43,384 $44,190 $43,168 $42,593 $43,818 $45,516 $43,600 $43,445 $44,037
Gross Profit $78,195 $85,967 $85,671 $87,223 $86,800 $61,200 $53,100 $62,058 $69,257 $21,565 $22,332 $21,370 $21,533 $17,500 $17,800 $16,600 $9,300 $9,400 $15,200 $13,200 $15,300 $15,000 $15,000 $16,000 $16,058 $15,853 $17,298 $17,547 $18,558
PVR $3,651 $3,702 $3,600 $3,725 $3,740 $3,333 $3,769 $3,743 $3,632 $3,907 $3,723 $3,631 $3,710 $3,502 $3,438 $3,494 $2,706 $3,058 $4,396 $3,622 $3,912 $4,038 $3,676 $3,733 $3,570 $3,711 $3,686 $3,560 $3,588
Gross Margin 8.8% 8.6% 8.1% 8.2% 7.9% 7.1% 8.0% 7.8% 7.6% 8.1% 7.9% 7.8% 7.8% 7.4% 7.4% 7.6% 5.8% 6.5% 9.6% 7.9% 8.3% 8.4% 7.9% 8.1% 7.5% 7.5% 7.8% 7.6% 7.5%
GROWTH RATES AND DRIVERS
SS Revenue 11.9% 5.7% 0.9% 2.9% (21.8% ) (22.9% ) 20.6% 14.2% 6.7% 7.3% 3.1% (4.7% ) (10.6% ) (14.7% ) (19.8% ) (41.9% ) (39.8% ) (31.8% ) (23.7% ) 16.8% 25.6% 20.5% 23.9% 13.9% 17.4% 12.3% 12.1% 15.6%
Units 8.4% 2.5% (1.6% ) (0.9% ) (20.9% ) (23.3% ) 17.7% 15.0% 0.2% 3.4% (1.8% ) (5.1% ) (9.5% ) (13.7% ) (19.3% ) (40.8% ) (38.5% ) (33.2% ) (23.3% ) 5.0% 15.0% 22.5% 20.0% 15.0% 15.0% 15.0% 15.0% 15.0%
RPU 3.2% 3.2% 2.5% 3.8% (1.2% ) 0.6% 2.5% (0.7% ) 6.5% 3.8% 5.0% 0.4% (1.2% ) (1.2% ) (0.6% ) (1.9% ) (1.2% ) (1.2% ) (0.6% ) 0.6% 2.0% 2.0% 1.0% 1.0% 3.0% 1.0% 1.8% 0.5%
COGS PU 3.4% 3.7% 2.4% 4.1% (0.4% ) (0.4% ) 2.7% (0.5% ) 6.3% 4.1% 5.3% 1.2% (0.4% ) (0.6% ) (0.4% ) 0.2% (0.4% ) (0.6% ) (0.4% ) (1.3% ) 1.0% 1.0% 0.5% 1.0% 3.0% 1.0% 2.0% 0.5%
Gross Profit 9.9% (0.3% ) 1.8% (0.5% ) (29.5% ) (13.2% ) 16.9% 11.6% 9.0% 4.1% 0.2% (12.7% ) (18.8% ) (20.3% ) (22.3% ) (56.8% ) (46.3% ) (14.6% ) (20.5% ) 64.5% 59.6% (1.3% ) 21.2% 5.0% 5.7% 15.3% 9.7% 15.6%
PVR 1.4% (2.8% ) 3.5% 0.4% (10.9% ) 13.1% (0.7% ) (3.0% ) 8.7% 0.7% 2.1% (8.0% ) (10.4% ) (7.6% ) (3.8% ) (27.1% ) (12.7% ) 27.8% 3.7% 44.6% 32.0% (16.4% ) 3.1% (8.7% ) (8.1% ) 0.3% (4.6% ) 0.5%
Y/O/Y BP Change in Gross Margin -15bp -49bp 7bp -27bp -78bp 89bp -25bp -18bp 17bp -25bp -22bp -72bp -76bp -52bp -25bp -200bp -86bp 217bp 33bp 254bp 192bp -173bp 16bp -80bp -91bp -6bp -51bp 0bp
Sequential BP Change in Gross Margin -15bp -49bp 7bp -27bp -78bp 89bp -25bp -18bp -38bp -22bp -9bp -4bp -42bp 2bp 19bp -179bp 72bp 305bp -166bp 42bp 11bp -60bp 23bp -55bp 0bp 26bp -22bp -4bp
MID-LINE IMPORT
SS Revenue $901,797 $1,074,258 $1,287,435 $1,345,201 $1,402,300 $1,145,300 $939,700 $1,002,284 $1,137,806 $320,005 $362,271 $362,072 $357,952 $325,900 $365,500 $322,000 $131,900 $192,600 $249,300 $285,600 $212,200 $227,900 $270,500 $276,000 $227,884 $265,444 $301,854 $312,724 $257,782
Units 38,956 45,378 53,221 55,043 55,113 46,317 38,638 39,867 44,651 13,083 14,992 14,957 $12,081 12,915 15,095 13,025 5,282 7,834 10,179 12,220 8,405 9,059 10,730 11,043 9,035 10,146 12,018 12,368 10,120
RPU $23,149 $23,674 $24,190 $24,439 $25,444 $24,727 $24,321 $25,140 $25,482 $24,460 $24,164 $24,208 $29,629 $25,234 $24,213 $24,722 $24,972 $26,033 $24,262 $25,247 $25,221 $26,294 $24,505 $25,285 $25,221 $26,162 $25,118 $25,285 $25,474
Implied COGS $839,087 $1,002,371 $1,198,639 $1,247,543 $1,302,800 $1,068,700 $879,500 $943,565 $1,066,229 $295,945 $336,155 $333,889 $336,811 $305,200 $341,300 $298,800 $123,400 $181,200 $235,900 $264,400 $198,000 $214,000 $254,300 $261,000 $214,265 $248,602 $282,216 $293,035 $242,376
COGS PU $21,539 $22,089 $22,522 $22,665 $23,639 $23,074 $22,763 $23,668 $23,879 $22,621 $22,422 $22,323 $27,879 $23,631 $22,610 $22,940 $23,362 $24,687 $22,800 $23,575 $23,479 $24,502 $22,800 $23,575 $23,714 $24,502 $23,484 $23,693 $23,951
Gross Profit $62,710 $71,887 $88,796 $97,658 $99,500 $76,600 $60,200 $58,719 $71,576 $24,060 $26,116 $28,183 $21,141 $20,700 $24,200 $23,200 $8,500 $11,400 $13,400 $21,200 $14,200 $13,900 $16,200 $15,000 $13,619 $16,842 $19,639 $19,690 $15,406
PVR $1,610 $1,584 $1,668 $1,774 $1,805 $1,654 $1,558 $1,473 $1,603 $1,839 $1,742 $1,884 $1,750 $1,603 $1,603 $1,781 $1,609 $1,455 $1,316 $1,735 $1,689 $1,534 $1,510 $1,358 $1,507 $1,660 $1,634 $1,592 $1,522
Gross Margin 7.0% 6.7% 6.9% 7.3% 7.1% 6.7% 6.4% 5.9% 6.3% 7.5% 7.2% 7.8% 5.9% 6.4% 6.6% 7.2% 6.4% 5.6% 5.4% 6.9% 6.7% 5.8% 6.2% 5.4% 6.0% 6.3% 6.5% 6.3% 6.0%
SS Revenue 19.1% 19.8% 4.5% 4.2% (18.3% ) (18.0% ) 6.7% 13.5% 0.9% (1.2% ) (0.4% ) 20.1% 1.8% 0.9% (11.1% ) (63.2% ) (40.9% ) (31.8% ) (11.3% ) 60.9% 18.3% 8.5% (3.4% ) 7.4% 16.5% 11.6% 13.3% 13.1%
Units 16.5% 17.3% 3.4% 0.1% (16.0% ) (16.6% ) 3.2% 12.0% 2.5% (0.8% ) (0.5% ) (0.5% ) (1.3% ) 0.7% (12.9% ) (56.3% ) (39.3% ) (32.6% ) (6.2% ) 85.0% 25.0% 22.0% 0.0% 7.5% 12.0% 12.0% 12.0% 12.0%
RPU 2.3% 2.2% 1.0% 4.1% (2.8% ) (1.6% ) 3.4% 1.4% (1.6% ) (0.4% ) 0.1% 20.7% 3.2% 0.2% 2.1% (15.7% ) 3.2% 0.2% 2.1% 1.0% 1.0% 1.0% 0.2% 0.0% (0.5% ) 2.5% 0.0% 1.0%
COGS PU 2.6% 2.0% 0.6% 4.3% (2.4% ) (1.3% ) 4.0% 0.9% (1.9% ) (0.5% ) (0.4% ) 22.7% 4.5% 0.8% 2.8% (16.2% ) 4.5% 0.8% 2.8% 0.5% (0.8% ) 0.0% 0.0% 1.0% 0.0% 3.0% 0.5% 1.0%
Gross Profit 14.6% 23.5% 10.0% 1.9% (23.0% ) (21.4% ) (2.5% ) 21.9% 5.3% 0.5% 5.6% (4.4% ) (14.0% ) (7.3% ) (17.7% ) (59.8% ) (44.9% ) (44.6% ) (8.6% ) 67.1% 21.9% 20.9% (29.2% ) (4.1% ) 21.2% 21.2% 31.3% 13.1%
PVR (1.6% ) 5.3% 6.3% 1.8% (8.4% ) (5.8% ) (5.5% ) 8.8% 2.7% 1.2% 6.1% (3.9% ) (12.8% ) (8.0% ) (5.5% ) (8.0% ) (9.2% ) (17.9% ) (2.6% ) 5.0% 5.4% 14.7% (21.7% ) (10.8% ) 8.2% 8.2% 17.2% 1.0%
Y/O/Y BP Change in Gross Margin -26bp 21bp 36bp -16bp -41bp -28bp -55bp 43bp 32bp 12bp 44bp -152bp -117bp -59bp -58bp 54bp -76bp -120bp -33bp 25bp 25bp 74bp -150bp -72bp 51bp 34bp 92bp 0bp
Sequential BP Change in Gross Margin -26bp 21bp 36bp -16bp -41bp -28bp -55bp 43bp 10bp -31bp 57bp -188bp 45bp 27bp 58bp -76bp -85bp -16bp 145bp -17bp -86bp 33bp -79bp 60bp 37bp 16bp -21bp -32bp
MID-LINE DOMESTIC
SS Revenue $535,340 $553,993 $546,140 $485,028 $514,200 $359,800 $254,200 $301,522 $329,508 $118,026 $122,399 $131,515 $142,260 $91,600 $84,100 $76,700 $107,400 $60,800 $65,100 $68,900 $59,400 $67,400 $79,200 $85,500 $69,422 $78,319 $78,302 $90,830 $82,056
Units 19,201 19,067 19,168 16,886 15,039 10,828 7,470 8,104 9,724 4,101 4,292 4,407 $2,239 2,731 2,785 2,445 $2,867 1,822 1,905 2,115 1,628 1,792 2,051 2,307 1,954 2,150 2,461 2,768 2,344
RPU $27,881 $29,055 $28,492 $28,724 $34,191 $33,229 $34,029 $37,208 $33,885 $28,780 $28,518 $29,842 $63,537 $33,541 $30,197 $31,370 $37,461 $39,089 $31,976 $32,976 $34,839 $38,953 $31,656 $32,646 $35,535 $36,421 $31,814 $32,810 $35,002
Implied COGS $494,781 $511,994 $506,692 $447,850 $477,500 $335,700 $237,200 $278,488 $303,241 $109,232 $113,540 $121,865 $132,863 $85,300 $78,100 $71,800 $100,500 $56,700 $60,900 $64,700 $54,900 $62,400 $73,300 $79,100 $63,688 $71,917 $72,072 $83,591 $75,661
COGS PU $25,769 $26,852 $26,434 $26,522 $31,751 $31,003 $31,754 $34,366 $31,184 $26,635 $26,454 $27,653 $59,340 $31,234 $28,043 $29,366 $35,054 $36,626 $29,728 $31,186 $32,600 $36,352 $29,579 $30,500 $32,600 $33,444 $29,283 $30,195 $32,274
Gross Profit $40,559 $41,999 $39,448 $37,178 $36,700 $24,100 $17,000 $23,034 $26,266 $8,794 $8,859 $9,650 $9,397 $6,300 $6,000 $4,900 $6,900 $4,100 $4,200 $4,200 $4,500 $5,000 $5,900 $6,400 $5,734 $6,402 $6,230 $7,240 $6,395
PVR $2,112 $2,203 $2,058 $2,202 $2,440 $2,226 $2,276 $2,842 $2,701 $2,144 $2,064 $2,190 $4,197 $2,307 $2,154 $2,004 $2,407 $2,250 $2,205 $1,986 $2,764 $2,790 $2,877 $2,774 $2,935 $2,977 $2,531 $2,615 $2,728
Gross Margin 7.6% 7.6% 7.2% 7.7% 7.1% 6.7% 6.7% 7.6% 8.0% 7.5% 7.2% 7.3% 6.6% 6.9% 7.1% 6.4% 6.4% 5.8% 6.9% 6.0% 7.9% 7.2% 9.1% 8.5% 8.3% 8.2% 8.0% 8.0% 7.8%
SS Revenue 3.5% (1.4% ) (11.2% ) 6.0% (30.0% ) (29.3% ) 18.6% 9.3% (3.3% ) (7.0% ) (8.0% ) 60.8% (22.4% ) (31.3% ) (41.7% ) (24.5% ) (33.6% ) (22.6% ) (10.2% ) (44.7% ) 10.9% 21.7% 24.1% 16.9% 16.2% (1.1% ) 6.2% 18.2%
Units (0.7% ) 0.5% (11.9% ) (10.9% ) (28.0% ) (31.0% ) 8.5% 20.0% (4.5% ) (7.6% ) (11.1% ) (25.1% ) (33.4% ) (35.1% ) (44.5% ) 28.0% (33.3% ) (31.6% ) (13.5% ) (27.5% ) 0.0% 20.0% 12.0% 20.0% 20.0% 20.0% 20.0% 20.0%
RPU 4.2% (1.9% ) 0.8% 19.0% (2.8% ) 2.4% 9.3% (8.9% ) 1.3% 0.7% 3.5% 114.7% 16.5% 5.9% 5.1% (41.0% ) 16.5% 5.9% 5.1% (7.0% ) (0.4% ) (1.0% ) (1.0% ) 2.0% (6.5% ) 0.5% 0.5% (1.5% )
COGS PU 4.2% (1.6% ) 0.3% 19.7% (2.4% ) 2.4% 8.2% (9.3% ) 2.0% 0.9% 3.5% 117.7% 17.3% 6.0% 6.2% (40.9% ) 17.3% 6.0% 6.2% (7.0% ) (0.8% ) (0.5% ) (2.2% ) 0.0% (8.0% ) (1.0% ) (1.0% ) (1.0% )
Gross Profit 3.6% (6.1% ) (5.8% ) (1.3% ) (34.3% ) (29.5% ) 35.5% 14.0% (11.2% ) (9.0% ) (8.9% ) 35.1% (28.4% ) (32.3% ) (49.2% ) (26.6% ) (34.9% ) (30.0% ) (14.3% ) (34.8% ) 22.0% 40.5% 52.4% 27.4% 28.0% 5.6% 13.1% 11.5%
PVR 4.3% (6.6% ) 7.0% 10.8% (8.8% ) 2.2% 24.9% (5.0% ) (7.0% ) (1.4% ) 2.5% 80.5% 7.6% 4.4% (8.5% ) (42.7% ) (2.5% ) 2.3% (0.9% ) 14.9% 24.0% 30.5% 39.7% 6.2% 6.7% (12.0% ) (5.7% ) (7.1% )
Y/O/Y BP Change in Gross Margin 0bp -36bp 44bp -53bp -44bp -1bp 95bp 33bp -67bp -16bp -7bp -126bp -57bp -10bp -95bp -18bp -112bp -24bp -37bp 151bp 141bp 219bp 248bp 33bp 101bp -113bp -53bp -47bp
Sequential BP Change in Gross Margin 0bp -36bp 44bp -53bp -44bp -1bp 95bp 33bp -41bp -21bp 10bp -73bp 27bp 26bp -75bp 4bp -67bp 114bp -87bp 191bp -77bp 192bp -59bp -24bp -9bp -22bp 1bp -18bp
VALUE
SS Revenue $34,506 $43,111 $42,354 $39,398 $35,600 $19,900 $19,100 $31,864 $34,656 $10,594 $11,140 $9,777 $4,089 $6,100 $6,100 $4,800 $2,900 $4,600 $4,500 $6,300 $3,700 $6,400 $8,400 $9,000 $8,064 $6,869 $8,779 $9,977 $9,031
Units 1,901 2,177 2,104 1,871 1,785 997 847 1,524 1,707 517 577 501 $190 303 314 245 $135 204 217 326 100 304 401 444 375 340 449 497 420
RPU $18,151 $19,803 $20,130 $21,057 $19,944 $19,960 $22,550 $20,908 $20,304 $20,491 $19,307 $19,515 $21,521 $20,132 $19,427 $19,592 $21,481 $19,779 $19,547 $19,669 $21,503 $20,175 $19,547 $20,062 $21,503 $20,175 $19,547 $20,062 $21,503
Implied COGS $31,515 $39,023 $38,711 $36,622 $33,800 $18,900 $18,200 $30,581 $32,998 $9,856 $10,437 $9,193 $4,314 $5,800 $5,700 $4,600 $2,800 $4,300 $4,300 $6,000 $3,600 $6,200 $8,100 $8,600 $7,681 $6,544 $8,346 $9,506 $8,602
COGS PU $16,578 $17,925 $18,399 $19,573 $18,936 $18,957 $21,488 $20,066 $19,332 $19,064 $18,088 $18,349 $22,705 $19,142 $18,153 $18,776 $20,741 $19,220 $18,218 $19,212 $20,481 $19,220 $18,582 $19,116 $20,481 $19,220 $18,582 $19,116 $20,481
Gross Profit $2,991 $4,088 $3,643 $2,776 $1,800 $1,000 $900 $1,283 $1,658 $738 $703 $584 ($225) $300 $400 $200 $100 $300 $200 $300 $100 $200 $300 $400 $383 $325 $434 $471 $429
PVR $1,573 $1,878 $1,731 $1,484 $1,008 $1,003 $1,063 $842 $972 $1,427 $1,218 $1,166 ($1,184) $990 $1,274 $816 $741 $1,471 $922 $920 $1,000 $658 $748 $901 $1,021 $954 $966 $947 $1,021
Gross Margin 8.7% 9.5% 8.6% 7.0% 5.1% 5.0% 4.7% 4.0% 4.8% 7.0% 6.3% 6.0% (5.5% ) 4.9% 6.6% 4.2% 3.4% 7.4% 4.7% 4.7% 4.7% 3.3% 3.8% 4.5% 4.8% 4.7% 4.9% 4.7% 4.8%
SS Revenue 24.9% (1.8% ) (7.0% ) (9.6% ) (44.1% ) (4.0% ) 66.8% 8.8% 3.3% (0.3% ) (10.4% ) (42.0% ) (42.4% ) (45.2% ) (50.9% ) (29.1% ) (24.6% ) (26.2% ) 31.3% 27.6% 39.1% 86.7% 42.9% 117.9% 7.3% 4.5% 10.9% 12.0%
Units 14.5% (3.4% ) (11.1% ) (4.6% ) (44.1% ) (15.0% ) 79.9% 12.0% 7.3% 9.3% (3.7% ) (44.3% ) (41.4% ) (45.6% ) (51.1% ) (28.9% ) (32.7% ) (30.9% ) 33.1% 45.0% 49.0% 84.8% 36.2% 45.0% 12.0% 12.0% 12.0% 12.0%
RPU 9.1% 1.7% 4.6% (5.3% ) 0.1% 13.0% (7.3% ) (2.9% ) (3.7% ) (8.8% ) (7.0% ) 4.0% (1.8% ) 0.6% 0.4% (0.2% ) (1.8% ) 0.6% 0.4% 0.1% 2.0% 0.0% 2.0% 0.0% 0.0% 0.0% 0.0% 0.0%
COGS PU 8.1% 2.6% 6.4% (3.3% ) 0.1% 13.3% (6.6% ) (3.7% ) (1.5% ) (8.7% ) (5.5% ) 14.8% 0.4% 0.4% 2.3% (8.7% ) 0.4% 0.4% 2.3% (1.3% ) 0.0% 2.0% (0.5% ) 0.0% 0.0% 0.0% 0.0% 0.0%
Gross Profit 36.7% (10.9% ) (23.8% ) (35.2% ) (44.4% ) (10.0% ) 42.6% 29.3% (20.5% ) (1.8% ) (29.0% ) (172.6% ) (59.3% ) (43.1% ) (65.8% ) (144.4% ) 0.0% (50.0% ) 50.0% 0.0% (33.3% ) 50.0% 33.3% 283.1% 62.5% 44.6% 17.7% 12.0%
PVR 19.3% (7.8% ) (14.3% ) (32.0% ) (0.5% ) 5.9% (20.8% ) 15.4% (25.9% ) (10.2% ) (26.3% ) (230.3% ) (30.6% ) 4.6% (30.0% ) (162.6% ) 48.5% (27.6% ) 12.7% 35.0% (55.3% ) (18.8% ) (2.1% ) 2.1% 45.1% 29.1% 5.1% 0.0%
Y/O/Y BP Change in Gross Margin 81bp -88bp -156bp -199bp -3bp -31bp -69bp 76bp -209bp -10bp -156bp -990bp -205bp 25bp -181bp 895bp 252bp -184bp 51bp 120bp -417bp -89bp -19bp 10bp 147bp 111bp 23bp 0bp
Sequential BP Change in Gross Margin 81bp -88bp -156bp -199bp -3bp -31bp -69bp 76bp 257bp -66bp -34bp -1148bp 1042bp 164bp -239bp -72bp 399bp -272bp -4bp -3bp -139bp 57bp 66bp 26bp -2bp 21bp -22bp 3bp
HEAVY TRUCK
SS Revenue $142,736 $199,169 $233,446 $333,222 $216,400 $191,100 $141,300 $140,920 $0 $58,730 $57,014 $58,923 $41,733 $36,600 $47,600 $51,200 $55,700 $36,500 $34,600 $32,900 $37,300 $47,900 $31,900 $28,800 $32,320 $0 $0 $0 $0
Units 3,029 3,828 4,171 5,566 3,625 2,885 2,279 2,670 0 1,017 975 964 $669 607 698 798 $782 584 508 542 645 1,059 651 508 452 0 0 0 0
RPU $47,123 $52,030 $55,969 $59,867 $59,697 $66,239 $62,001 $52,789 NA $57,748 $58,476 $61,123 $62,381 $60,297 $68,195 $64,160 $71,228 $62,500 $79,529 $67,348 $71,228 $66,250 $78,734 $67,348 $71,584 $66,250 $78,734 $67,348 $71,584
Implied COGS $136,335 $191,812 $225,115 $319,856 $206,100 $183,500 $136,900 $135,895 $0 $55,478 $54,477 $56,687 $39,458 $34,900 $45,600 $49,200 $53,800 $34,900 $33,200 $31,700 $37,100 $46,200 $30,500 $27,900 $31,295 $0 $0 $0 $0
COGS PU $45,010 $50,108 $53,971 $57,466 $56,855 $63,605 $60,070 $50,907 NA $54,551 $55,874 $58,804 $58,981 $57,496 $65,330 $61,654 $68,798 $59,760 $76,385 $64,642 $68,798 $63,346 $75,622 $64,642 $69,314 $63,346 $75,622 $64,642 $69,314
Gross Profit $6,401 $7,357 $8,331 $13,366 $10,300 $7,600 $4,400 $5,025 $0 $3,252 $2,537 $2,236 $2,275 $1,700 $2,000 $2,000 $1,900 $1,600 $1,400 $1,200 $200 $1,700 $1,400 $900 $1,025 $0 $0 $0 $0
PVR $2,113 $1,922 $1,997 $2,401 $2,841 $2,634 $1,931 $1,882 NA $3,198 $2,602 $2,320 $3,401 $2,801 $2,865 $2,506 $2,430 $2,740 $2,756 $2,214 $310 $1,605 $2,151 $1,772 $2,270 NA NA NA NA
Gross Margin 4.5% 3.7% 3.6% 4.0% 4.8% 4.0% 3.1% 3.6% NA 5.5% 4.4% 3.8% 5.5% 4.6% 4.2% 3.9% 3.4% 4.4% 3.5% 3.3% 0.4% 2.4% 2.7% 2.6% 3.2% NA NA NA NA
SS Revenue 39.5% 17.2% 42.7% (35.1% ) (11.7% ) (26.1% ) (0.3% ) (100.0% ) (7.0% ) (45.1% ) (27.3% ) (51.1% ) (37.7% ) (16.5% ) (13.1% ) 33.5% (0.3% ) (27.3% ) (35.7% ) (33.0% ) 31.2% (7.8% ) (12.5% ) (13.4% ) (100.0% ) (100.0% ) (100.0% ) (100.0% )
Units 26.4% 9.0% 33.4% (34.9% ) (20.4% ) (21.0% ) 17.1% (100.0% ) (5.5% ) (42.6% ) (25.2% ) (55.5% ) (40.3% ) (28.4% ) (17.2% ) 16.9% (3.8% ) (27.2% ) (32.1% ) (30.0% ) 81.3% 28.1% (6.3% ) (30.0% ) (100.0% ) (100.0% ) (100.0% ) (100.0% )
RPU 10.4% 7.6% 7.0% (0.3% ) 11.0% (6.4% ) (14.9% ) NA (1.6% ) (4.3% ) (2.8% ) 10.0% 4.4% 16.6% 5.0% 14.2% 3.7% 16.6% 5.0% 0.0% 6.0% (1.0% ) 0.0% 0.5% 0.0% 0.0% 0.0% 0.0%
COGS PU 11.3% 7.7% 6.5% (1.1% ) 11.9% (5.6% ) (15.3% ) NA (2.8% ) (5.1% ) (2.8% ) 8.7% 5.4% 16.9% 4.8% 16.6% 3.9% 16.9% 4.8% 0.0% 6.0% (1.0% ) 0.0% 0.8% 0.0% 0.0% 0.0% 0.0%
Gross Profit 14.9% 13.2% 60.4% (22.9% ) (26.2% ) (42.1% ) 14.2% (100.0% ) 17.8% (32.9% ) (28.4% ) (38.5% ) (47.7% ) (21.2% ) (10.6% ) (16.5% ) (5.9% ) (30.0% ) (40.0% ) (89.5% ) 6.3% 0.0% (25.0% ) 412.4% (100.0% ) (100.0% ) (100.0% ) (100.0% )
PVR (9.1% ) 3.9% 20.2% 18.3% (7.3% ) (26.7% ) (2.5% ) NA 24.7% 16.8% (4.3% ) 38.2% (12.4% ) 10.1% 8.1% (28.6% ) (2.2% ) (3.8% ) (11.7% ) (87.2% ) (41.4% ) (22.0% ) (20.0% ) 632.0% NA NA NA NA
Y/O/Y BP Change in Gross Margin -79bp -13bp 44bp 75bp -78bp -86bp 45bp NA 117bp 80bp -6bp 111bp -89bp -25bp 11bp -204bp -26bp -74bp -62bp -298bp -196bp -73bp -66bp 274bp NA NA NA NA
Sequential BP Change in Gross Margin -79bp -13bp 44bp 75bp -78bp -86bp 45bp NA 120bp -109bp -66bp 166bp -81bp -44bp -30bp -50bp 97bp -92bp -18bp -285bp 199bp 31bp -10bp 54bp NA NA NA NA
TOTAL NEW RETAIL
REVENUE
SS Revenue $2,433,956 $2,191,223 $2,506,452 $2,868,707 $3,164,722 $3,267,558 $3,263,900 $2,572,500 $2,015,000 $2,273,327 $2,412,213 $772,313 $834,652 $834,923 $822,012 $697,200 $743,700 $673,400 $458,200 $437,200 $517,500 $560,500 $499,800 $528,800 $587,700 $606,000 $550,827 $560,940 $610,854 $645,216 $595,203
Acquired Retail Revenue $8,521 $799 $0 $0 $36,058 $0 $133,300 $6,100 $0 $68,925 $1,167 $10,907 $16,166 ($28,240) $0 $0 $0 $133,300 $5,900 $200 $0 $0 $0 $0 $0 $0 $17,231 $17,231 $17,231 $17,231
Total New Retail Revenue $2,442,477 $2,192,022 $2,506,452 $2,868,707 $3,164,722 $3,303,616 $3,263,900 $2,705,800 $2,021,100 $2,273,327 $2,481,138 $773,480 $845,559 $851,089 $793,772 $697,200 $743,700 $673,400 $591,500 $443,100 $517,700 $560,500 $499,800 $528,800 $587,700 $606,000 $550,827 $578,171 $628,085 $662,447 $612,435
UNITS
SS Units 92,780 77,676 84,502 93,674 102,463 102,784 106,188 83,220 63,321 68,744 75,149 24,237 26,835 26,714 20,983 21,553 24,069 21,264 12,503 13,518 16,267 18,847 14,689 15,929 17,914 18,588 16,313 16,909 19,621 20,563 18,056
Acquisition Units 415 31 0 0 1,282 0 4,534 $251 $0 $3,083 55 343 512 ($910) 0 0 0 $4,534 240 11 0 0 0 0 0 0 764 776 774 770
Total New Retail Units 93,195 77,707 84,502 93,674 102,463 104,066 106,188 87,754 63,572 68,744 78,233 24,292 27,178 27,226 20,073 21,553 24,069 21,264 17,037 13,758 16,278 18,847 14,689 15,929 17,914 18,588 16,313 17,673 20,397 21,337 18,826
REVENUE PER UNIT
SS RPU $26,234 $28,210 $29,661 $30,624 $30,886 $31,791 $30,737 $30,912 $31,822 $33,069 $32,099 $31,865 $31,103 $31,254 $39,175 $32,348 $30,899 $31,669 $36,647 $32,342 $31,813 $29,739 $34,025 $33,197 $32,807 $32,602 $33,766 $33,174 $31,133 $31,378 $32,964
Acquired RPU $20,533 $25,774 NA NA NA $28,126 NA $29,400 $24,303 $22,269 $22,353 $21,218 $31,799 $31,574 $31,033 NA NA NA $29,400 $24,583 $18,182 $21,383 $23,387 $23,118 $21,562 $22,021 $22,522 $22,553 $22,212 $22,262 $22,387
Total RPU $26,208 $28,209 $29,661 $30,624 $30,886 $31,745 $30,737 $30,834 $31,792 $33,069 $31,715 $31,841 $31,112 $31,260 $39,544 $32,348 $30,899 $31,669 $34,719 $32,207 $31,804 $29,739 $34,025 $33,197 $32,807 $32,602 $33,766 $32,715 $30,793 $31,047 $32,531
COGS
Implied SS COGS $2,232,940 $2,007,980 $2,315,596 $2,657,409 $2,938,833 $3,029,357 $3,028,800 $2,402,000 $1,879,400 $2,123,208 $2,243,455 $713,904 $774,105 $772,900 $767,891 $650,700 $693,300 $626,500 $431,500 $410,400 $483,100 $520,400 $465,500 $493,000 $548,900 $567,300 $514,008 $521,518 $567,254 $600,268 $554,414
Implied Acquired COGS $7,981 $745 $0 $0 $0 $33,716 $0 $122,600 $5,600 $0 $63,393 $1,104 $10,080 $14,875 ($26,059) $0 $0 $0 $122,600 $5,400 $200 $0 $0 $0 $0 $0 $0 $15,848 $15,848 $15,848 $15,848
Implied Total Retail COGS $2,240,921 $2,008,725 $2,315,596 $2,657,409 $2,938,833 $3,063,073 $3,028,800 $2,524,600 $1,885,000 $2,123,208 $2,306,847 $715,008 $784,185 $787,775 $741,832 $650,700 $693,300 $626,500 $554,100 $415,800 $483,300 $520,400 $465,500 $493,000 $548,900 $567,300 $514,008 $537,366 $583,102 $616,116 $570,262
COGS PER UNIT
SS COGS PU $24,067 $25,851 $27,403 $28,369 $28,682 $29,473 $28,523 $28,863 $29,681 $30,886 $29,853 $29,455 $28,847 $28,932 $36,596 $30,191 $28,805 $29,463 $34,512 $30,360 $29,698 $27,612 $31,690 $30,950 $30,641 $30,520 $31,509 $30,842 $28,910 $29,192 $30,705
Acquired COGS PU $19,231 $24,032 NA NA NA $26,300 NA $27,040 $22,311 $22,269 $20,559 $20,073 $29,388 $29,053 $28,636 NA NA NA $27,040 $22,500 $18,182 $21,383 $23,387 $23,118 $21,562 $22,021 $22,522 $20,743 $20,429 $20,475 $20,590
Total Retail COGS PU $24,046 $25,850 $27,403 $28,369 $28,682 $29,434 $28,523 $28,769 $29,651 $30,886 $29,487 $29,434 $28,854 $28,935 $36,957 $30,191 $28,805 $29,463 $32,523 $30,222 $29,690 $27,612 $31,690 $30,950 $30,641 $30,520 $31,509 $30,406 $28,588 $28,876 $30,291
GROSS PROFIT
SS Gross Profit $201,016 $183,243 $190,856 $211,298 $225,889 $238,201 $235,100 $170,500 $135,600 $150,119 $168,758 $58,409 $60,547 $62,023 $54,121 $46,500 $50,400 $46,900 $26,700 $26,800 $34,400 $40,100 $34,300 $35,800 $38,800 $38,700 $36,819 $39,422 $43,600 $44,947 $40,789
Acquired Gross $540 $54 $0 $0 $2,342 $0 $10,700 $500 $0 $5,533 $63 $827 $1,291 ($2,181) $0 $0 $0 $10,700 $500 $0 $0 $0 $0 $0 $0 $0 $1,383 $1,383 $1,383 $1,383
Total Gross Profit $201,556 $183,297 $190,856 $211,298 $225,889 $240,543 $235,100 $181,200 $136,100 $150,119 $174,291 $58,472 $61,374 $63,314 $51,940 $46,500 $50,400 $46,900 $37,400 $27,300 $34,400 $40,100 $34,300 $35,800 $38,800 $38,700 $36,819 $40,805 $44,983 $46,331 $42,172
GROSS PROFIT PER VEHICLE
SS PVR $2,167 $2,359 $2,259 $2,256 $2,205 $2,317 $2,214 $2,049 $2,141 $2,184 $2,246 $2,410 $2,256 $2,322 $2,579 $2,157 $2,094 $2,206 $2,135 $1,983 $2,115 $2,128 $2,335 $2,247 $2,166 $2,082 $2,257 $2,331 $2,222 $2,186 $2,259
Acquired PVR $1,301 $1,742 NA NA NA $1,827 NA $2,360 $1,992 $0 $1,794 $1,145 $2,411 $2,521 $2,397 NA NA NA $2,360 $2,083 $0 $0 $0 $0 $0 $0 $0 $1,810 $1,783 $1,787 $1,797
Total New Retail PVR $2,163 $2,359 $2,259 $2,256 $2,205 $2,311 $2,214 $2,065 $2,141 $2,184 $2,228 $2,407 $2,258 $2,325 $2,588 $2,157 $2,094 $2,206 $2,195 $1,984 $2,113 $2,128 $2,335 $2,247 $2,166 $2,082 $2,257 $2,309 $2,205 $2,171 $2,240
GROSS MARGIN
SS Retail Gross Margin 8.3% 8.4% 7.6% 7.4% 7.1% 7.3% 7.2% 6.6% 6.7% 6.6% 7.0% 7.6% 7.3% 7.4% 6.6% 6.7% 6.8% 7.0% 5.8% 6.1% 6.6% 7.2% 6.9% 6.8% 6.6% 6.4% 6.7% 7.0% 7.1% 7.0% 6.9%
Acquired Retail Gross Margin 6.3% 6.8% NA NA NA 6.5% NA 8.0% 8.2% 0.0% 8.0% 5.4% 7.6% 8.0% 7.7% NA NA NA 8.0% 8.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 8.0% 8.0% 8.0% 8.0%
Total Retail Gross Margin 8.3% 8.4% 7.6% 7.4% 7.1% 7.3% 7.2% 6.7% 6.7% 6.6% 7.0% 7.6% 7.3% 7.4% 6.5% 6.7% 6.8% 7.0% 6.3% 6.2% 6.6% 7.2% 6.9% 6.8% 6.6% 6.4% 6.7% 7.1% 7.2% 7.0% 6.9%
REVENUE
SS Revenue NA (10.0% ) 14.4% 14.5% 10.3% 3.2% (0.1% ) (21.2% ) (21.7% ) 12.8% 6.1% 1.5% (4.7% ) (3.2% ) 7.0% (9.7% ) (10.9% ) (19.3% ) (44.3% ) (37.3% ) (30.4% ) (16.8% ) 9.1% 21.0% 13.6% 8.1% 10.2% 6.1% 3.9% 6.5% 8.1%
Sequential % change 0.5% 8.1% 0.0% (1.5% ) (15.2% ) 6.7% (9.5% ) (32.0% ) (4.6% ) 18.4% 8.3% (10.8% ) 5.8% 11.1% 3.1% (9.1% ) 1.8% 8.9% 5.6% (7.8% )
Acquired Retail Revenue NA (90.6% ) (100.0% ) NA NA NA (100.0% ) NA (95.4% ) (100.0% ) ### NA NA NA (178.3% ) (100.0% ) (100.0% ) (100.0% ) (572.0% ) NA NA NA (100.0% ) (100.0% ) (100.0% ) 9900.0% 9900.0% 62499999900% 62499999900% 624999900% 624999900%
Total New Retail Revenue NA (10.3% ) 14.3% 14.5% 10.3% 4.4% (1.2% ) (17.1% ) (25.3% ) 12.5% 9.1% 1.7% (3.4% ) (1.4% ) (1.3% ) (9.9% ) (12.0% ) (20.9% ) (25.5% ) (36.4% ) (30.4% ) (16.8% ) (15.5% ) 19.3% 13.5% 8.1% 10.2% 9.3% 6.9% 9.3% 11.2%
UNITS IMPLIED SAAR 16.5 16.1 12.6 9.6 12.3 13.4
SS Units NA (16.3% ) 8.8% 10.9% 9.4% 0.3% 3.3% (21.6% ) (23.9% ) 8.6% 9.3% 0.5% (3.4% ) (3.9% ) (9.1% ) (11.1% ) (10.3% ) (20.4% ) (40.4% ) (37.3% ) (32.4% ) (11.4% ) 17.5% 17.8% 10.1% (1.4% ) 11.1% 6.2% 9.5% 10.6% 10.7%
Acquisition Units NA (92.5% ) (100.0% ) NA NA NA (100.0% ) NA (94.5% ) (100.0% ) ### NA NA NA (171.0% ) (100.0% ) (100.0% ) (100.0% ) (598.2% ) NA NA NA (100.0% ) (100.0% ) (100.0% ) 9610.2% 10284.1% ### ### 618221365.3% 628751225.9%
Total New Retail Units NA (16.6% ) 8.7% 10.9% 9.4% 1.6% 2.0% (17.4% ) (27.6% ) 8.1% 13.8% 0.7% (2.2% ) (2.0% ) (17.7% ) (11.3% ) (11.4% ) (21.9% ) (15.1% ) (36.2% ) (32.4% ) (11.4% ) (13.8% ) 15.8% 10.1% (1.4% ) 11.1% 11.0% 13.9% 14.8% 15.4%
REVENUE PER UNIT
SS RPU NA 7.5% 5.1% 3.2% 0.9% 2.9% (3.3% ) 0.6% 2.9% 3.9% (2.9% ) 1.0% (1.3% ) 0.7% 17.7% 1.5% (0.7% ) 1.3% (6.5% ) (0.0% ) 3.0% (6.1% ) (7.2% ) 2.6% 3.1% 9.6% (0.8% ) (0.1% ) (5.1% ) (3.8% ) (2.4% )
Acquired RPU NA 25.5% NA NA NA NA NA NA (17.3% ) (8.4% ) 0.4% NA NA NA 10.3% NA NA NA (5.3% ) NA NA NA (20.5% ) (6.0% ) 18.6% 3.0% (3.7% ) (2.4% ) 3.0% 1.1% (0.6% )
Total RPU NA 7.6% 5.1% 3.2% 0.9% 2.8% (3.2% ) 0.3% 3.1% 4.0% (4.1% ) 1.0% (1.3% ) 0.7% 19.8% 1.6% (0.7% ) 1.3% (12.2% ) (0.4% ) 2.9% (6.1% ) (2.0% ) 3.1% 3.2% 9.6% (0.8% ) (1.5% ) (6.1% ) (4.8% ) (3.7% )
COGS
Implied SS COGS NA (10.1% ) 15.3% 14.8% 10.6% 3.1% (0.0% ) (20.7% ) (21.8% ) 13.0% 5.7% 1.3% (4.9% ) (3.4% ) 8.1% (8.9% ) (10.4% ) (18.9% ) (43.8% ) (36.9% ) (30.3% ) (16.9% ) 7.9% 20.1% 13.6% 9.0% 10.4% 5.8% 3.3% 5.8% 7.9%
Implied Acquired COGS NA (90.7% ) (100.0% ) NA NA NA (100.0% ) NA (95.4% ) (100.0% ) ### NA NA NA (177.3% ) (100.0% ) (100.0% ) (100.0% ) (570.5% ) NA NA NA (100.0% ) (100.0% ) (100.0% ) 9900.0% 9900.0% ### ### 574831107.8% 574831107.8%
Implied Total Retail COGS NA (10.4% ) 15.3% 14.8% 10.6% 4.2% (1.1% ) (16.6% ) (25.3% ) 12.6% 8.6% 1.5% (3.7% ) (1.6% ) (0.3% ) (9.0% ) (11.6% ) (20.5% ) (25.3% ) (36.1% ) (30.3% ) (16.9% ) (16.0% ) 18.6% 13.6% 9.0% 10.4% 9.0% 6.2% 8.6% 10.9%
COGS PER UNIT
SS COGS PU NA 7.4% 6.0% 3.5% 1.1% 2.8% (3.2% ) 1.2% 2.8% 4.1% (3.3% ) 0.8% (1.5% ) 0.5% 18.9% 2.5% (0.1% ) 1.8% (5.7% ) 0.6% 3.1% (6.3% ) (8.2% ) 1.9% 3.2% 10.5% (0.6% ) (0.3% ) (5.6% ) (4.4% ) (2.6% )
Acquired COGS PU NA 25.0% NA NA NA NA NA NA (17.5% ) (0.2% ) (7.7% ) NA NA NA 8.9% NA NA NA (5.6% ) NA NA NA (13.5% ) 2.7% 18.6% 3.0% (3.7% ) (10.3% ) (5.3% ) (7.0% ) (8.6% )
Total Retail COGS PU NA 7.5% 6.0% 3.5% 1.1% 2.6% (3.1% ) 0.9% 3.1% 4.2% (4.5% ) 0.8% (1.5% ) 0.5% 21.0% 2.6% (0.2% ) 1.8% (12.0% ) 0.1% 3.1% (6.3% ) (2.6% ) 2.4% 3.2% 10.5% (0.6% ) (1.8% ) (6.7% ) (5.4% ) (3.9% )
GROSS PROFIT
SS Gross Profit NA (8.8% ) 4.2% 10.7% 6.9% 5.5% (1.3% ) (27.5% ) (20.5% ) 10.7% 12.4% 3.9% (1.8% ) (0.8% ) (6.3% ) (20.4% ) (16.8% ) (24.4% ) (50.7% ) (42.4% ) (31.7% ) (14.5% ) 28.5% 33.6% 12.8% (3.5% ) 7.3% 10.1% 12.4% 16.1% 10.8%
Acquired Gross NA (90.0% ) (100.0% ) NA NA NA (100.0% ) NA (95.3% ) (100.0% ) NA NA NA NA (193.1% ) (100.0% ) (100.0% ) (100.0% ) (590.6% ) NA NA NA (100.0% ) (100.0% ) NA NA NA NA NA NA NA
Total Gross Profit NA (9.1% ) 4.1% 10.7% 6.9% 6.5% (2.3% ) (22.9% ) (24.9% ) 10.3% 16.1% 4.0% (0.5% ) 1.2% (13.6% ) (20.5% ) (17.9% ) (25.9% ) (28.0% ) (41.3% ) (31.7% ) (14.5% ) (8.3% ) 31.1% 12.8% (3.5% ) 7.3% 14.0% 15.9% 19.7% 14.5%
SS PVR NA 8.9% (4.3% ) (0.1% ) (2.3% ) 5.1% (4.5% ) (7.5% ) 4.5% 2.0% 2.8% 3.4% 1.6% 3.1% 3.2% (10.5% ) (7.2% ) (5.0% ) (17.2% ) (8.1% ) 1.0% (3.5% ) 9.3% 13.4% 2.4% (2.1% ) (3.3% ) 3.7% 2.6% 5.0% 0.1%
Acquired PVR NA 33.9% NA NA NA NA NA NA (15.6% ) (100.0% ) NA NA NA NA 31.2% NA NA NA (1.5% ) NA NA NA (100.0% ) (100.0% ) NA NA NA NA NA NA NA
Total New Retail PVR NA 9.1% (4.2% ) (0.1% ) (2.3% ) 4.8% (4.2% ) (6.7% ) 3.7% 2.0% 2.0% 3.3% 1.7% 3.3% 5.0% (10.4% ) (7.3% ) (5.2% ) (15.2% ) (8.0% ) 0.9% (3.5% ) 6.4% 13.3% 2.5% (2.1% ) (3.3% ) 2.7% 1.8% 4.3% (0.7% )
GROSS MARGIN BP CHANGE
Sequential BP Change in Gross Margin
SS Retail Gross Margin NA 10bp -75bp -25bp -23bp 15bp -9bp -58bp 10bp -13bp 39bp 5bp 725bp -13bp -67bp 9bp 678bp 30bp -95bp 30bp 665bp 102bp 22bp -9bp 660bp -38bp 8bp 34bp 714bp -6bp -28bp
Acquired Retail Gross Margin NA 42bp NA NA NA NA NA NA 17bp -820bp 803bp -110bp 758bp 259bp 14bp NA NA NA NA 45bp 0bp -847bp 0bp 0bp 0bp 0bp 0bp 803bp 803bp 0bp 0bp
Total Retail Gross Margin NA 11bp -75bp -25bp -23bp 14bp -8bp -51bp 4bp -13bp 42bp 9bp 726bp -12bp -71bp 13bp 678bp 30bp -45bp -16bp 664bp 99bp 22bp -9bp 660bp -38bp 8bp 37bp 716bp -6bp -28bp
YOY BP Change in Gross Margin
SS Retail Gross Margin NA 10bp -75bp -25bp -23bp 15bp -9bp -58bp 10bp -13bp 39bp 2bp 2bp 2bp -9bp -9bp -5bp -5bp -8bp -5bp -1bp 2bp 10bp 6bp 0bp -8bp -2bp 3bp 5bp 6bp 2bp
Acquired Retail Gross Margin NA 42bp NA NA NA NA NA NA 17bp -820bp 803bp NA NA NA 12bp NA NA NA 3bp NA NA NA -80bp -85bp 0bp 0bp 0bp 80bp 80bp 80bp 80bp
Total Retail Gross Margin NA 11bp -75bp -25bp -23bp 14bp -8bp -51bp 4bp -13bp 42bp 2bp 2bp 2bp -9bp -9bp -5bp -5bp -2bp -5bp -1bp 2bp 5bp 6bp 0bp -8bp -2bp 3bp 6bp 6bp 2bp
FLEET UNIT DISCLOSURE STARTED WITH 2Q07 REPORT fleet data not available in 2Q08available in 2Q08
SS Revenue $37,725 $50,984 $69,248 $112,360 $140,949 $153,802 $0 $0 $0 $0 $0 $50,971 $45,722 $42,888 ($139,581) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Acquired Revenue $0 $0 $0 $0 $0 $937 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Fleet Revenue $37,725 $50,984 $69,248 $112,360 $140,949 $154,739 $0 $0 $0 $0 $0 $50,971 $45,722 $42,888 ($139,581) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Units 7,501 7,419 3,831 $1,785 $2,137 $2,351 1,934 2,135 $3,350 1,330 688 633 0 459 741 245 340 486 803 508 340 535 883 559 374
RPU NA NA NA NA NA $20,629 $0 $0 $0 $0 $0 NA $23,641 $20,088 ($41,666) $0 $0 $0 0 $0 $0 $0 $0 $0 $0 $0 0 0 0 0 0
Implied COGS $35,554 $49,654 $68,039 $110,218 $138,262 $149,775 $0 $0 $0 $0 $0 $49,906 $44,874 $42,202 ($136,982) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
COGS PU NA $23,203 $19,767 ($40,890) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
SS Gross Profit $2,171 $1,330 $1,209 $2,142 $2,687 $4,027 $0 $0 $0 $0 $0 $1,065 $848 $686 ($2,599) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Acquired Gross Profit $0 $0 $0 $0 $0 $21 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Gross Profit $2,171 $1,330 $1,209 $2,142 $2,687 $4,048 $0 $0 $0 $0 $0 $1,065 $848 $686 ($2,599) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
PVR NA NA NA NA NA $20,629 $0 $0 $0 $0 $0 NA $438 $321 ($776) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Gross Margin 5.8% 2.6% 1.7% 1.9% 1.9% 2.6% NA NA NA NA NA 2.1% 1.9% 1.6% 1.9% NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
Revenue NA 35.1% 35.8% 62.3% 25.4% 9.8% (100.0% ) NA NA NA NA 4.3% 47.3% 9.9% (489.6% ) (100.0% ) (100.0% ) (100.0% ) (100.0% ) NA NA NA NA NA NA NA NA NA NA NA NA
Units (1.1% ) (48.4% ) (53.4% ) 19.7% 10.0% NA 4.1% 12.9% (10.7% ) NA (64.4% ) (70.4% ) (100.0% ) (100.0% ) 0.0% (61.3% ) 0.0% 0.0% 0.0% 0.0% 0.0% 10.0% 10.0% 10.0% 10.0%
RPU (100.0% ) NA NA NA NA NA 41.5% (2.6% ) (536.3% ) NA (100.0% ) (100.0% ) (100.0% ) 0.0% 0.0% NA 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
COGS PU (100.0% ) NA NA NA NA NA 44.7% (1.6% ) (551.8% ) NA (100.0% ) (100.0% ) (100.0% ) 0.5% 0.5% NA 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Gross Profit NA (38.7% ) (9.1% ) 77.2% 25.4% 49.9% (100.0% ) NA NA NA NA 29.7% (32.8% ) (31.9% ) (377.4% ) (100.0% ) (100.0% ) (100.0% ) (100.0% ) NA NA NA NA NA NA NA NA NA NA NA NA
PVR NA NA NA NA NA (35.4% ) (39.7% ) NA NA (100.0% ) (100.0% ) (100.0% ) NA NA NA NA NA NA NA NA NA NA NA NA
Y/O/Y BP Change in Gross Margin NA -315bp -86bp 16bp 0bp 71bp NA NA NA NA NA 41bp -221bp -98bp -75bp NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
Sequential BP Change in Gross Margin NA -315bp -86bp 16bp 0bp 71bp NA NA NA NA NA -53bp -23bp -26bp 26bp NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
TOTAL NEW VEHICLE ??? Includes profit from fleet but not units
REVENUE
SS Retail Revenue $2,433,956 $2,191,223 $2,506,452 $2,868,707 $3,164,722 $3,267,558 $3,263,900 $2,572,500 $2,015,000 $2,273,327 $2,412,213 $772,313 $834,652 $834,923 $822,012 $697,200 $743,700 $673,400 $458,200 $437,200 $517,500 $560,500 $499,800 $528,800 $587,700 $606,000 $550,827 $560,940 $610,854 $645,216 $595,203
Acquired Retail Revenue $8,521 $799 $0 $0 $0 $36,058 $0 $133,300 $6,100 $0 $68,925 $1,167 $10,907 $16,166 ($28,240) $0 $0 $0 $0 $5,900 $200 $0 $0 $0 $0 $0 $0 $17,231 $17,231 $17,231 $17,231
Total Retail Revenue $2,442,477 $2,192,022 $2,506,452 $2,868,707 $3,164,722 $3,303,616 $3,263,900 $2,705,800 $2,021,100 $2,273,327 $2,481,138 $773,480 $845,559 $851,089 $793,772 $697,200 $743,700 $673,400 $458,200 $443,100 $517,700 $560,500 $499,800 $528,800 $587,700 $606,000 $550,827 $578,171 $628,085 $662,447 $612,435
SS Fleet Revenue $37,725 $50,984 $69,248 $112,360 $140,949 $153,802 $0 $0 $0 $0 $0 $50,971 $45,722 $42,888 ($139,581) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Acquired Fleet Revenue $0 $0 $0 $0 $0 $937 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Fleet Revenue $37,725 $50,984 $69,248 $112,360 $140,949 $154,739 $0 $0 $0 $0 $0 $50,971 $45,722 $42,888 ($139,581) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total New Vehicle Revenue $2,480,202 $2,243,006 $2,575,700 $2,981,067 $3,305,671 $3,458,355 $3,263,900 $2,705,800 $2,021,100 $2,273,327 $2,481,138 $824,451 $891,281 $893,977 $654,191 $697,200 $743,700 $673,400 $458,200 $443,100 $517,700 $560,500 $499,800 $528,800 $587,700 $606,000 $550,827 $578,171 $628,085 $662,447 $612,435
UNITS need to find fleet units 2.8% 69,257 67,365
SS Retail Units 92,780 77,676 84,502 93,674 102,463 102,784 106,188 83,220 63,321 68,744 75,149 24,237 26,835 26,714 20,983 21,553 24,069 21,264 12,503 13,518 16,267 18,847 14,689 15,929 17,914 18,588 16,313 16,909 19,621 20,563 18,056
Acquired Retail Units 415 31 0 0 0 1,282 0 4,534 251 0 3,083 55 343 512 (910) 0 0 0 4,534 240 11 0 0 0 0 0 0 764 776 774 770
Total New Retail Units 93,195 77,707 84,502 93,674 102,463 104,066 106,188 87,754 63,572 68,744 78,233 24,292 27,178 27,226 20,073 21,553 24,069 21,264 17,037 13,758 16,278 18,847 14,689 15,929 17,914 18,588 16,313 17,673 20,397 21,337 18,826
Total Fleet Units 0 0 0 0 0 7,501 7,419 3,831 1,785 2,137 2,351 0 1,934 2,135 3,350 1,330 688 633 0 459 741 245 340 486 803 508 340 535 883 559 374
Total New Vehicle Units 93,195 77,707 84,502 93,674 102,463 111,567 113,607 91,585 65,357 70,881 80,583 24,292 29,112 29,361 23,423 22,883 24,757 21,897 17,037 14,217 17,019 19,092 15,029 16,415 18,717 19,096 16,653 18,208 21,280 21,896 19,200
REVENUE PER UNIT ASSUME MIX SHIFT TO SMALLER CARS PUTS END TO ASP GROWTH
SS Retail RPU $26,234 $28,210 $29,661 $30,624 $30,886 $31,791 $30,737 $30,912 $31,822 $33,069 $32,099 $31,865 $31,103 $31,254 $39,175 $30,468 $30,040 $30,753 $36,647 $31,280 $30,427 $29,358 $34,025 $33,197 $32,807 $32,602 $33,766 $33,174 $31,133 $31,378 $32,964
Acquired Retail RPU $20,533 $25,774 NA NA NA $28,126 NA $29,400 $24,303 $22,269 $22,353 $21,218 $31,799 $31,574 $31,033 NA NA NA $29,400 $24,583 $18,182 $21,383 $23,387 $23,118 $21,562 $22,021 $22,522 $22,553 $22,212 $22,262 $22,387
Total Retail RPU $26,208 $28,209 $29,661 $30,624 $30,886 $31,745 $30,737 $30,834 $31,792 $33,069 $31,715 $31,841 $29,045 $28,987 $33,889 $30,468 $30,040 $30,753 $34,719 $31,167 $30,419 $29,358 $33,256 $32,214 $31,399 $31,734 $33,076 $31,754 $29,515 $30,255 $31,898
COGS
Implied SS Retail COGS $2,232,940 $2,007,980 $2,315,596 $2,657,409 $2,938,833 $3,029,357 $3,028,800 $2,402,000 $1,879,400 $2,123,208 $2,243,455 $713,904 $774,105 $772,900 $767,891 $650,700 $693,300 $626,500 $431,500 $410,400 $483,100 $520,400 $465,500 $493,000 $548,900 $567,300 $514,008 $521,518 $567,254 $600,268 $554,414
Implied Acquired Retail COGS $8,521 $799 $0 $0 $0 $36,058 $0 $133,300 $6,100 $0 $68,925 $1,167 $10,907 $16,166 ($28,240) $0 $0 $0 $0 $5,900 $200 $0 $0 $0 $0 $0 $0 $17,231 $17,231 $17,231 $17,231
Implied Total New Retail COGS $2,241,461 $2,008,779 $2,315,596 $2,657,409 $2,938,833 $3,065,415 $3,028,800 $2,535,300 $1,885,500 $2,123,208 $2,312,380 $715,071 $785,012 $789,066 $739,651 $650,700 $693,300 $626,500 $431,500 $416,300 $483,300 $520,400 $465,500 $493,000 $548,900 $567,300 $514,008 $538,749 $584,485 $617,500 $571,646
Implied SS Fleet COGS $35,554 $49,654 $68,039 $110,218 $138,262 $149,775 $0 $0 $0 $0 $0 $49,906 $44,874 $42,202 ($136,982) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Implied Acquired Fleet COGS $0 $0 $0 $0 $0 $916 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Implied Total Fleet COGS $35,554 $49,654 $68,039 $110,218 $138,262 $150,691 $0 $0 $0 $0 $0 $49,906 $44,874 $42,202 ($136,982) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Implied Total New Vehicle COGS $2,277,015 $2,058,433 $2,383,635 $2,767,627 $3,077,095 $3,216,106 $3,028,800 $2,535,300 $1,885,500 $2,123,208 $2,312,380 $764,977 $829,886 $831,268 $602,669 $650,700 $693,300 $626,500 $431,500 $416,300 $483,300 $520,400 $465,500 $493,000 $548,900 $567,300 $514,008 $538,749 $584,485 $617,500 $571,646
COGS PER UNIT
SS Retail COGS PU $24,067 $25,851 $27,403 $28,369 $28,682 $29,473 $28,523 $28,863 $29,681 $30,886 $29,853 $29,455 $26,908 $26,791 $31,558 $28,436 $28,004 $28,611 $34,512 $29,363 $28,404 $27,257 $30,973 $30,034 $29,326 $29,708 $30,866 $29,897 $27,665 $28,420 $30,082
Acquired Retail COGS PU $20,533 $25,774 NA NA NA $28,126 NA $29,400 $24,303 $22,269 $22,353 $21,218 $31,799 $31,574 $31,033 NA NA NA $0 $24,583 $18,182 $21,383 $23,387 $23,118 $21,562 $22,021 $22,522 $22,553 $22,212 $22,262 $22,387
Total New Retail COGS PU $24,051 $25,851 $27,403 $28,369 $28,682 $29,456 $28,523 $28,891 $29,659 $30,886 $29,558 $29,436 $28,884 $28,982 $36,848 $30,191 $28,805 $29,463 $25,327 $30,259 $29,690 $27,612 $31,690 $30,950 $30,641 $30,520 $31,509 $30,484 $28,656 $28,941 $30,365
GROSS PROFIT
Total SS Retail Gross Profit $201,016 $183,243 $190,856 $211,298 $225,889 $238,201 $235,100 $170,500 $135,600 $150,119 $168,758 $58,409 $60,547 $62,023 $54,121 $46,500 $50,400 $46,900 $26,700 $26,800 $34,400 $40,100 $34,300 $35,800 $38,800 $38,700 $36,819 $39,422 $43,600 $44,947 $40,789
Acquired Retail Gross Profit $540 $54 $0 $0 $0 $2,342 $0 $10,700 $500 $0 $5,533 $63 $827 $1,291 ($2,181) $0 $0 $0 ### $500 $0 $0 $0 $0 $0 $0 $0 ### ### ### ###
Total Retail Gross Profit $201,556 $183,297 $190,856 $211,298 $225,889 $240,543 $235,100 $181,200 $136,100 $150,119 $174,291 $58,472 $61,374 $63,314 $51,940 $46,500 $50,400 $46,900 $37,400 $27,300 $34,400 $40,100 $34,300 $35,800 $38,800 $38,700 $36,819 $40,805 $44,983 $46,331 $42,172
SS Fleet Gross Profit $2,171 $1,330 $1,209 $2,142 $2,687 $4,027 $0 $0 $0 $0 $0 $1,065 $848 $686 ($2,599) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Acquired Fleet Gross Profit $0 $0 $0 $0 $0 $21 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Fleet Gross Profit $2,171 $1,330 $1,209 $2,142 $2,687 $4,048 $0 $0 $0 $0 $0 $1,065 $848 $686 ($2,599) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total New Vehicle Gross Profit $203,727 $184,627 $192,065 $213,440 $228,576 $244,591 $235,100 $181,200 $136,100 $150,119 $174,291 $59,537 $62,222 $64,000 $49,341 $46,500 $50,400 $46,900 $37,400 $27,300 $34,400 $40,100 $34,300 $35,800 $38,800 $38,700 $36,819 $40,805 $44,983 $46,331 $42,172
SS Retail PVR $2,167 $2,359 $2,259 $2,256 $2,205 $2,317 $2,214 $2,049 $2,141 $2,184 $2,246 $2,410 $2,105 $2,150 $2,224 $2,032 $2,036 $2,142 $2,135 $1,917 $2,023 $2,100 $2,282 $2,181 $2,073 $2,027 $2,211 $2,260 $2,126 $2,128 $2,213
Acquired Retail PVR $1,301 $1,742 NA NA NA $1,827 NA $2,360 $1,992 $0 $1,794 $1,145 $2,411 $2,521 $2,397 NA NA NA $2,360 $2,083 $0 $0 $0 $0 $0 $0 $0 $1,810 $1,783 $1,787 $1,797
Actual Retail PVR $2,163 $2,359 $2,259 $2,256 $2,205 $2,311 $2,214 $2,065 $2,141 $2,184 $2,228 $2,407 $2,108 $2,156 $2,217 $2,032 $2,036 $2,142 $2,195 $1,920 $2,021 $2,100 $2,282 $2,181 $2,073 $2,027 $2,211 $2,241 $2,114 $2,116 $2,196
GROSS MARGIN
Acquired SS Retail Gross Margin 6.3% 6.8% NA NA NA 6.5% NA 8.0% 8.2% 0.0% 8.0% 5.4% 7.6% 8.0% 7.7% NA NA NA 8.0% 8.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 8.0% 8.0% 8.0% 8.0%
Total Retail Gross Margin 8.3% 8.4% 7.6% 7.4% 7.1% 7.3% 7.2% 6.7% 6.7% 6.6% 7.0% 7.6% 7.3% 7.4% 6.5% 6.7% 6.8% 7.0% 8.2% 6.2% 6.6% 7.2% 6.9% 6.8% 6.6% 6.4% 6.7% 7.1% 7.2% 7.0% 6.9%
SS Fleet Gross Margin 5.8% 2.6% 1.7% 1.9% 1.9% 2.6% NA NA NA NA NA 2.1% 1.9% 1.6% 1.9% NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
Acquired Fleet Gross Margin NA NA NA NA NA 2.2% NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
Total Fleet Gross Margin 5.8% 2.6% 1.7% 1.9% 1.9% 2.6% NA NA NA NA NA 2.1% 1.9% 1.6% 1.9% NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
Total New Vehicle Gross Margin 8.2% 8.2% 7.5% 7.2% 6.9% 7.1% 7.2% 6.7% 6.7% 6.6% 7.0% 7.2% 7.0% 7.2% 7.5% 6.7% 6.8% 7.0% 8.2% 6.2% 6.6% 7.2% 6.9% 6.8% 6.6% 6.4% 6.7% 7.1% 7.2% 7.0% 6.9%
Company (Actual Gross Margin) 8.3% 8.4% 7.6% 7.4% 7.1% 7.3% 7.2% 6.7% 6.7% 6.6% 7.0% 7.6% 7.3% 7.4% 6.5% 6.7% 6.8% 7.0% 6.3% 6.2% 6.6% 7.2% 6.9% 6.8% 6.6% 6.4% 6.7% 7.1% 7.2% 7.0% 6.9%
USED VEHICLE ENDED WITH NEW 08 and 07 UPDATED READY TO START ON USED 12/22/09
REVENUE
SS Retail Revenue $861,226 $767,453 $799,366 $862,485 $1,004,858 $1,116,160 $1,055,600 $809,600 $736,100 $885,202 $934,964 $295,794 $296,339 $278,514 $184,953 $229,700 $224,000 $189,500 $166,400 $171,300 $194,600 $192,600 $177,600 $206,300 $230,200 $239,400 $209,302 $219,683 $238,753 $252,576 $223,953
Acquired Retail Revenue $3,099 $687 $0 $0 $0 $3,981 $0 $32,300 $2,200 $0 $11,098 $722 $4,500 $5,589 ($10,811) $0 $0 $0 $32,300 $1,900 $300 $0 $0 $0 $0 $0 $0 $2,775 $2,775 $2,775 $2,775
Total Used Retail Revenue $864,325 $768,140 $799,366 $862,485 $1,004,858 $1,120,141 $1,055,600 $841,900 $738,300 $885,202 $946,062 $296,516 $300,839 $284,103 $174,142 $229,700 $224,000 $189,500 $198,700 $173,200 $194,900 $192,600 $177,600 $206,300 $230,200 $239,400 $209,302 $222,457 $241,527 $255,350 $226,728
SS Wholesale Revenue $237,770 $239,422 $257,001 $299,338 $323,687 $337,299 $334,200 $230,600 $185,600 $210,620 $219,463 $81,407 $93,341 $91,010 $68,442 $70,000 $65,200 $59,300 $36,100 $36,800 $47,500 $50,800 $50,500 $46,100 $55,700 $56,200 $52,620 $48,035 $58,039 $58,559 $54,829
Acquired Wholesale Revenue $826 $18 $0 $0 $0 $1,058 $0 $12,800 $700 $0 $4,089 $224 $1,323 $3,027 ($4,574) $0 $0 $0 $12,800 $700 $0 $0 $0 $0 $0 $0 $0 $1,022 $1,022 $1,022 $1,022
Total Wholesale Revenue $238,596 $239,440 $257,001 $299,338 $323,687 $338,357 $334,200 $243,400 $186,300 $210,620 $223,552 $81,631 $94,664 $94,037 $63,868 $70,000 $65,200 $59,300 $48,900 $37,500 $47,500 $50,800 $50,500 $46,100 $55,700 $56,200 $52,620 $49,058 $59,061 $59,582 $55,852
Total Used Vehicle Revenue $1,102,921 $1,007,580 $1,056,367 $1,161,823 $1,328,545 $1,458,498 $1,389,800 $1,085,300 $924,600 $1,095,822 $1,169,614 $378,147 $395,503 $378,140 $238,010 $299,700 $289,200 $248,800 $247,600 $210,700 $242,400 $243,400 $228,100 $252,400 $285,900 $295,600 $261,922 $271,515 $300,588 $314,932 $282,579
UNITS
SS Retail Units 58,396 49,174 51,288 54,045 59,272 62,722 57,663 45,607 40,216 46,916 50,894 16,568 16,146 15,172 9,777 12,647 12,666 10,954 9,340 9,595 10,649 10,513 9,459 10,966 11,897 12,702 11,351 12,063 12,968 13,718 12,145
Acquired Retail Units 216 46 0 0 0 265 0 $1,718 $133 $0 $604 57 255 282 ($594) 0 0 0 $1,718 127 6 0 0 0 0 0 0 152 151 151 150
Total Used Retail Units 58,612 49,220 51,288 54,045 59,272 62,987 57,663 47,325 40,349 46,916 51,498 16,625 16,401 15,454 9,183 12,647 12,666 10,954 11,058 9,722 10,655 10,513 9,459 10,966 11,897 12,702 11,351 12,215 13,118 13,869 12,296
UNIT GROWTH AND DRIVERS
SS Retail Units NA (15.8% ) 4.3% 5.4% 9.7% 5.8% (8.1% ) (20.9% ) (11.8% ) 16.7% 8.5% 8.9% (0.3% ) (10.4% ) (31.9% ) (23.7% ) (21.6% ) (27.8% ) (4.5% ) (24.1% ) (15.9% ) (4.0% ) 5.0% 14.3% 11.7% 20.8% 20.0% 10.0% 9.0% 8.0% 7.0%
Acquired Retail Units NA (78.7% ) (100.0% ) NA NA NA (100.0% ) NA (92.3% ) (100.0% ) NA NA NA NA (324.2% ) (100.0% ) (100.0% ) (100.0% ) (389.2% ) NA NA NA 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Total Used Retail Units NA (16.0% ) 4.2% 5.4% 9.7% 6.3% (8.5% ) (17.9% ) (14.7% ) 16.3% 9.8% 9.2% 1.3% (8.8% ) (37.2% ) (23.9% ) (22.8% ) (29.1% ) 20.4% (23.1% ) (15.9% ) (4.0% ) (14.5% ) 12.8% 11.7% 20.8% 20.0% 11.4% 10.3% 9.2% 8.3%
REVENUE PER UNIT
SS Used Retail RPU $14,748 $15,607 $15,586 $15,959 $16,953 $17,795 $18,306 $17,752 $18,304 $18,868 $18,371 $17,853 $18,354 $18,357 $18,917 $18,162 $17,685 $17,300 $17,816 $17,853 $18,274 $18,320 $18,439 $18,032 $18,320 $18,320 18,439 18,212 18,411 18,412 18,439
Acquired Used Retail RPU $14,347 $14,935 NA NA NA $15,023 NA $18,801 $16,541 NA $18,368 $12,667 $17,647 $19,819 $18,200 $0 $0 NA $18,801 $0 $0 $0 $18,801 $0 $0 $0 18,801 18,212 18,411 18,412 18,439
Total Used Retail RPU $14,747 $15,606 $15,586 $15,959 $16,953 $17,784 $18,306 $17,790 $18,298 $18,868 $18,371 $17,836 $18,343 $18,384 $18,964 $18,162 $17,685 $17,300 $17,969 $17,815 $18,292 $18,320 $18,776 $18,813 $19,349 $18,847 $18,439 $18,212 $18,411 $18,412 $18,439
RPU GROWTH AND DRIVERS
SS Used Retail RPU NA 5.8% (0.1% ) 2.4% 6.2% 5.0% 2.9% (3.0% ) 3.1% 3.1% (2.6% ) 2.0% 1.7% 3.4% 5.9% 1.7% (3.6% ) (5.8% ) (5.8% ) (1.7% ) 3.3% 5.9% 3.5% 1.0% 0.3% 0.0% 0.0% 1.0% 0.5% 0.5% 0.0%
Acquired Used Retail RPU NA 4.1% NA NA NA NA NA NA (12.0% ) NA NA NA NA NA 21.2% (100.0% ) (100.0% ) NA 3.3% NA NA NA 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Total Used Retail RPU NA 5.8% (0.1% ) 2.4% 6.2% 4.9% 2.9% (2.8% ) 2.9% 3.1% (2.6% ) 1.9% 1.6% 3.6% 6.5% 1.8% (3.6% ) (5.9% ) (5.2% ) (1.9% ) 3.4% 5.9% 4.5% 5.6% 5.8% 2.9% (1.8% ) (3.2% ) (4.8% ) (2.3% ) (0.0% )
IMPLIED COGS
SS Retail Implied COGS $760,520 $677,171 $705,990 $763,108 $887,436 $981,357 $932,300 $717,700 $658,400 $791,505 $840,382 $260,218 $262,144 $247,854 $162,084 $202,900 $198,300 $167,400 $149,100 $151,900 $174,300 $171,600 $160,600 $183,600 $206,100 $214,300 $187,505 $197,214 $214,375 $226,156 $202,637
Acquired Retail Implied COGS $2,767 $595 $0 $0 $0 $3,420 $0 $29,400 $1,700 $0 $9,977 $645 $3,994 $5,012 ($9,651) $0 $0 $0 $29,400 $1,700 $0 $0 $0 $0 $0 $0 $0 $2,491 $2,491 $2,484 $2,510
Total Used Retail Implied COGS $763,287 $677,766 $705,990 $763,108 $887,436 $984,777 $932,300 $747,100 $660,100 $791,505 $850,359 $260,863 $266,138 $252,866 $152,433 $202,900 $198,300 $167,400 $178,500 $153,600 $174,300 $171,600 $160,600 $183,600 $206,100 $214,300 $187,505 $199,705 $216,866 $228,640 $205,147
SS Wholesale Implied COGS $241,197 $241,808 $258,552 $301,624 $323,219 $338,541 $336,400 $234,300 $187,600 $211,883 $220,030 $80,913 $93,558 $92,435 $69,494 $70,300 $65,600 $60,600 $37,800 $36,500 $47,900 $52,400 $50,800 $46,200 $55,600 $57,200 $52,883 $48,035 $58,039 $58,852 $55,104
Acquired Wholesale Implied COGS $933 $15 $0 $0 $0 $1,075 $0 $12,900 $900 $0 $4,099 $202 $1,310 $3,090 ($4,602) $0 $0 $0 $12,900 $700 $200 $0 $0 $0 $0 $0 $0 $1,022 $1,022 $1,027 $1,027
Total Used Wholesale Implied COGS $242,130 $241,823 $258,552 $301,624 $323,219 $339,616 $336,400 $247,200 $188,500 $211,883 $224,129 $81,115 $94,868 $95,525 $64,892 $70,300 $65,600 $60,600 $50,700 $37,200 $48,100 $52,400 $50,800 $46,200 $55,600 $57,200 $52,883 $49,058 $59,061 $59,880 $56,131
Total Used Vehicle Implied COGS $1,005,417 $919,589 $964,542 $1,064,732 $1,210,655 $1,324,393 $1,268,700 $994,300 $848,600 $1,003,389 $1,074,488 $341,978 $361,006 $348,391 $217,325 $273,200 $263,900 $228,000 $229,200 $190,800 $222,400 $224,000 $211,400 $229,800 $261,700 $271,500 $240,389 $248,763 $275,927 $288,520 $261,278
COGS PER UNIT
SS Used Retail COGS PU $13,023 $13,771 $13,765 $14,120 $14,972 $15,646 $16,168 $15,737 $16,372 $16,871 $16,512 $15,706 $16,236 $16,336 $16,578 $16,043 $15,656 $15,282 $15,964 $15,831 $16,368 $16,323 $16,602 $16,187 $16,368 $16,323 16,519 16,349 16,531 16,486 16,684
Acquired Used Retail COGS PU $12,810 $12,935 NA NA NA $12,906 NA $17,113 $12,782 NA $16,512 $11,316 $15,663 $17,773 $16,247 NA NA NA $17,113 $13,386 $0 $0 $17,113 $13,386 $0 $0 17,113 16,349 16,531 16,486 16,684
Total Used Retail COGS PU $13,023 $13,770 $13,765 $14,120 $14,972 $15,635 $16,168 $15,787 $16,360 $16,871 $16,512 $15,691 $16,227 $16,362 $16,599 $16,043 $15,656 $15,282 $16,142 $15,799 $16,359 $16,323 $16,979 $16,743 $17,324 $16,871 $16,519 $16,349 $16,531 $16,486 $16,684
COGS PU GROWTH AND DRIVERS
SS Used Retail COGS PU NA 5.7% (0.0% ) 2.6% 6.0% 4.5% 3.3% (2.7% ) 4.0% 3.0% (2.1% ) 2.0% 2.4% 4.7% 5.5% 2.1% (3.6% ) (6.5% ) (3.7% ) (1.3% ) 4.5% 6.8% 4.0% 2.3% 0.0% 0.0% (0.5% ) 1.0% 1.0% 1.0% 1.0%
Acquired Used Retail COGS PU NA 1.0% NA NA NA NA NA NA (25.3% ) NA NA NA NA NA 25.9% NA NA NA 5.3% NA NA NA 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Total Used Retail COGS PU NA 5.7% (0.0% ) 2.6% 6.0% 4.4% 3.4% (2.4% ) 3.6% 3.1% (2.1% ) 1.9% 2.3% 4.8% 6.0% 2.2% (3.5% ) (6.6% ) (2.8% ) (1.5% ) 4.5% 6.8% 5.2% 6.0% 5.9% 3.4% (2.7% ) (2.3% ) (4.6% ) (2.3% ) 1.0%
GROSS PROFIT
SS Retail Gross Profit $100,706 $90,282 $93,376 $99,377 $117,422 $134,803 $123,300 $91,900 $77,700 $93,697 $94,582 $35,576 $34,195 $30,660 $22,869 $26,800 $25,700 $22,100 $17,300 $19,400 $20,300 $21,000 $17,000 $22,700 $24,100 $25,100 $21,797 $22,468 $24,378 $26,420 $21,316
Acquired Retail Gross Profit $332 $92 $0 $0 $561 $0 $2,900 $500 $0 $1,121 $77 $506 $577 ($1,160) $0 $0 $0 $2,900 $200 $300 $0 $0 $0 $0 $0 $0 $284 $283 $290 $264
Total Used Retail Gross Profit $101,038 $90,374 $93,376 $99,377 $117,422 $135,364 $123,300 $94,800 $78,200 $93,697 $95,704 $35,653 $34,701 $31,237 $21,709 $26,800 $25,700 $22,100 $20,200 $19,600 $20,600 $21,000 $17,000 $22,700 $24,100 $25,100 $21,797 $22,752 $24,661 $26,710 $21,580
SS Wholesale Gross Profit ($3,427) ($2,386) ($1,551) ($2,286) $468 ($1,242) ($2,200) ($3,700) ($2,000) ($1,263) ($567) $494 ($217) ($1,425) ($1,052) ($300) ($400) ($1,300) ($1,700) $300 ($400) ($1,600) ($300) ($100) $100 ($1,000) ($263) $0 $0 ($293) ($274)
Acquired Wholesale Gross Profit ($107) $3 $0 $0 $0 ($17) $0 ($100) ($200) ($0) ($10) $22 $13 ($63) $28 $0 $0 $0 ($100) $0 ($200) $0 $0 $0 $0 ($0) ($0) $0 $0 ($5) ($5)
Total Used Wholesale Gross Profit ($3,534) ($2,383) ($1,551) ($2,286) $468 ($1,259) ($2,200) ($3,800) ($2,200) ($1,263) ($577) $516 ($204) ($1,488) ($1,024) ($300) ($400) ($1,300) ($1,800) $300 ($600) ($1,600) ($300) ($100) $100 ($1,000) ($263) $0 $0 ($298) ($279)
Total Used Vehicle Gross Profit $97,504 $87,991 $91,825 $97,091 $117,890 $134,105 $121,100 $91,000 $76,000 $92,433 $95,126 $36,169 $34,497 $29,749 $20,685 $26,500 $25,300 $20,800 $18,400 $19,900 $20,000 $19,400 $16,700 $22,600 $24,200 $24,100 $21,533 $22,752 $24,661 $26,412 $21,301
SS Used Retail PVR $1,725 $1,836 $1,821 $1,839 $1,981 $2,149 $2,138 $2,015 $1,932 $1,997 $1,858 $2,147 $2,118 $2,021 $2,339 $2,119 $2,029 $2,018 $1,852 $2,022 $1,906 $1,998 $1,797 $2,070 $2,026 $1,976 $1,920 $1,863 $1,880 $1,926 $1,755
Acquired Used Retail PVR $1,537 $2,000 NA NA NA $2,117 NA $1,688 $3,759 NA $1,856 $1,351 $1,984 $2,046 $1,953 NA NA NA $1,688 $1,575 $50,000 NA NA NA NA NA NA $1,863 $1,880 $1,926 $1,755
Total Used Retail PVR ("Actual") $1,724 $1,836 $1,821 $1,839 $1,981 $2,149 $2,138 $2,003 $1,938 $1,997 $1,858 $2,145 $2,116 $2,021 $2,364 $2,119 $2,029 $2,018 $1,827 $2,016 $1,933 $1,998 $1,797 $2,070 $2,026 $1,976 $1,920 $1,863 $1,880 $1,926 $1,755
GROSS MARGIN
Acquired Retail Gross Margin 10.7% 13.4% NA NA NA 14.1% NA 9.0% 22.7% 0.0% 10.1% 10.7% 11.2% 10.3% 10.7% NA NA NA 9.0% 10.5% 100.0% NA 0.0% 0.0% NA 0.0% 0.0% 10.2% 10.2% 10.5% 9.5%
Total Used Retail Gross Margin ("actual") 11.7% 11.8% 11.7% 11.5% 11.7% 12.1% 11.7% 11.3% 10.6% 10.6% 10.1% 12.0% 11.5% 11.0% 12.5% 11.7% 11.5% 11.7% 10.2% 11.3% 10.6% 10.9% 9.6% 11.0% 10.5% 10.5% 10.4% 10.2% 10.2% 10.5% 9.5%
SS Wholesale Gross Margin (1.4% ) (1.0% ) (0.6% ) (0.8% ) 0.1% (0.4% ) (0.7% ) (1.6% ) (1.1% ) (0.6% ) (0.3% ) 0.6% (0.2% ) (1.6% ) (1.5% ) (0.4% ) (0.6% ) (2.2% ) (4.7% ) 0.0% 0.0% (0.5% ) 0.0% 0.0% 0.0% (0.5% ) (0.5% ) 0.0% 0.0% (0.5% ) (0.5% )
Acquired Wholesale Gross Margin (13.0% ) 16.7% NA NA NA (1.6% ) NA (0.8% ) (28.6% ) (0.5% ) (0.3% ) 9.8% 1.0% (2.1% ) (0.6% ) NA NA NA (0.8% ) 0.0% 0.0% (0.5% ) 0.0% 0.0% 0.0% (0.5% ) (0.5% ) 0.0% 0.0% (0.5% ) (0.5% )
Total Used Wholesale Gross Margin (1.5% ) (1.0% ) (0.6% ) (0.8% ) 0.1% (0.4% ) (0.7% ) (1.6% ) (1.2% ) (0.6% ) (0.3% ) 0.6% (0.2% ) (1.6% ) (1.6% ) (0.4% ) (0.6% ) (2.2% ) (3.7% ) 0.8% (1.3% ) (3.1% ) (0.6% ) (0.2% ) 0.2% (1.8% ) (0.5% ) 0.0% 0.0% (0.5% ) (0.5% )
Total Used Vehicle Gross Margin 8.8% 8.7% 8.7% 8.4% 8.9% 9.2% 8.7% 8.4% 8.2% 8.4% 8.1% 9.6% 8.7% 7.9% 8.7% 8.8% 8.7% 8.4% 7.4% 9.4% 8.3% 8.0% 7.3% 9.0% 8.5% 8.2% 8.2% 8.4% 8.2% 8.4% 7.5%
REVENUE
SS Retail Revenue NA (10.9% ) 4.2% 7.9% 16.5% 11.1% (5.4% ) (23.3% ) (9.1% ) 20.3% 5.6% 11.0% 1.3% (7.4% ) (27.9% ) (22.3% ) (24.4% ) (32.0% ) (10.0% ) (25.4% ) (13.1% ) 1.6% 6.7% 20.4% 18.3% 24.3% 17.9% 6.5% 3.7% 5.5% 7.0%
Sequential % chg 15.3% 0.2% (6.0% ) (33.6% ) 24.2% (2.5% ) (15.4% ) (12.2% ) 2.9% 13.6% (1.0% ) (7.8% ) 16.2% 11.6% 4.0% (12.6% ) 5.0% 8.7% 5.8% (11.3% )
Acquired Retail Revenue NA (77.8% ) (100.0% ) NA NA NA (100.0% ) NA (93.2% ) (100.0% ) 621890447.3% NA NA NA (371.6% ) (100.0% ) (100.0% ) (100.0% ) (398.8% ) NA NA NA (100.0% ) (100.0% ) (100.0% ) NA 9900.0% ### NA 312499900.0% 312499900.0%
Total Used Retail Revenue NA (11.1% ) 4.1% 7.9% 16.5% 11.5% (5.8% ) (20.2% ) (12.3% ) 19.9% 6.9% 11.3% 2.9% (5.5% ) (33.2% ) (22.5% ) (25.5% ) (33.3% ) 14.1% (24.6% ) (13.0% ) 1.6% (10.6% ) 19.1% 18.1% 24.3% 17.9% 7.8% 4.9% 6.7% 8.3%
SS Wholesale Revenue NA 0.7% 7.3% 16.5% 8.1% 4.2% (0.9% ) (31.0% ) (19.5% ) 13.5% 4.2% (5.4% ) 8.1% 4.2% (11.8% ) (14.0% ) (30.1% ) (34.8% ) (47.3% ) (47.4% ) (27.1% ) (14.3% ) 39.9% 25.3% 17.3% 10.6% 4.2% 4.2% 4.2% 4.2% 4.2%
Acquired Wholesale Revenue NA (97.8% ) (100.0% ) NA NA NA (100.0% ) NA (94.5% ) (100.0% ) 618811781.2% NA NA NA (532.3% ) (100.0% ) (100.0% ) (100.0% ) (379.8% ) NA NA NA (100.0% ) (100.0% ) 0.0% NA 9900.0% ### ### 31
9% 2,222,300 2,039,200
2008 2009E 2010E 2011E
2001
2002
2003
2004
2005
2006
2007
2008
09E
10E
11E
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E 2011E 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4QE 1QE 2QE 3QE 4QE 1QE 2QE 3QE 4QE
REVENUE 893.34 0.00 9.02% 4014200.01 3682100.00
New vehicle 2,518,659 2,648,274 2,838,452 3,112,724 3,345,920 3,458,355 3,411,715 2,632,200 2,014,000 2,273,327 2,481,138 697,200 743,700 673,400 517,900 443,100 517,700 560,500 499,800 528,800 587,700 606,000 550,827 578,171 628,085 662,447 612,435
Used vehicle 1,132,291 1,160,066 1,162,581 1,212,471 1,344,296 1,458,498 1,478,195 1,043,700 923,700 1,095,822 1,169,614 299,700 289,200 248,800 206,000 210,700 242,400 243,400 228,100 252,400 285,900 295,600 261,922 271,515 300,588 314,932 282,579
Parts, service and collision repair 477,018 499,891 533,362 584,334 635,525 675,018 705,888 678,400 622,100 624,470 670,440 169,400 169,200 173,000 166,800 163,600 159,700 152,800 149,000 152,800 157,700 160,500 153,470 163,809 168,856 171,740 166,034
Finance and insurance, net 104,280 115,422 127,389 137,119 150,156 156,460 163,536 132,700 90,800 115,286 127,272 36,300 36,800 31,900 27,700 20,900 22,600 26,300 21,700 26,000 30,400 31,800 27,086 28,757 32,843 34,919 30,753
Total Revenues 4,232,248 4,423,653 4,661,784 5,046,648 5,475,897 5,748,331 5,759,334 4,487,000 3,650,600 4,108,904 4,448,464 1,202,600 1,238,900 1,127,100 918,400 838,300 942,400 983,000 898,600 960,000 1,061,700 1,093,900 993,304 1,042,253 1,130,372 1,184,038 1,091,801
COST OF SALES 8%
New vehicle 2,311,942 2,433,713 2,627,793 2,888,179 3,113,999 3,213,765 3,170,342 2,456,100 1,877,600 2,123,208 2,306,847 650,700 693,300 626,500 485,600 415,800 483,300 520,400 465,500 493,000 548,900 567,300 514,008 537,366 583,102 616,116 570,262
Used vehicle 1,031,443 1,055,505 1,059,063 1,110,727 1,225,228 1,324,393 1,352,986 956,300 847,800 1,003,389 1,074,488 273,200 263,900 228,000 191,200 190,800 222,400 224,000 211,400 229,800 261,700 271,500 240,389 248,763 275,927 288,520 261,278
Total cost of sales 3,573,053 3,724,828 3,938,806 4,277,502 4,652,214 4,870,471 4,864,186 3,753,200 3,037,600 3,427,062 3,706,884 1,007,800 1,040,000 944,400 761,000 690,200 786,500 820,300 750,800 797,100 885,800 916,100 828,062 865,673 941,021 988,027 912,164
GROSS PROFIT
New vehicle 206,717 214,561 210,659 224,545 231,921 244,590 241,373 176,100 136,400 150,119 174,291 46,500 50,400 46,900 32,300 27,300 34,400 40,100 34,300 35,800 38,800 38,700 36,819 40,805 44,983 46,331 42,172
Used vehicle 100,848 104,561 103,518 101,744 119,068 134,105 125,209 87,400 75,900 92,433 95,126 26,500 25,300 20,800 14,800 19,900 20,000 19,400 16,700 22,600 24,200 24,100 21,533 22,752 24,661 26,412 21,301
Finance and insurance, net 104,280 115,422 127,389 137,119 150,156 156,460 163,536 132,700 90,800 115,286 127,272 36,300 36,800 31,900 27,700 20,900 22,600 26,300 21,700 26,000 30,400 31,800 27,086 28,757 32,843 34,919 30,753
Total Gross Profit 659,195 698,825 722,978 769,146 823,683 877,860 895,148 733,800 613,000 681,842 741,580 194,800 198,900 182,700 157,400 148,100 155,900 162,700 147,800 162,900 175,900 177,800 165,242 176,580 189,351 196,012 179,637
Gross Profit Margin
New vehicle 8.2% 8.1% 7.4% 7.2% 6.9% 7.1% 7.1% 6.7% 6.8% 6.6% 7.0% 6.7% 6.8% 7.0% 6.2% 6.2% 6.6% 7.2% 6.9% 6.8% 6.6% 6.4% 6.7% 7.1% 7.2% 7.0% 6.9%
Used vehicle 8.9% 9.0% 8.9% 8.4% 8.9% 9.2% 8.5% 8.4% 8.2% 8.4% 8.1% 8.8% 8.7% 8.4% 7.2% 9.4% 8.3% 8.0% 7.3% 9.0% 8.5% 8.2% 8.2% 8.4% 8.2% 8.4% 7.5%
Parts, service and collision repair 51.9% 52.9% 52.8% 52.3% 50.8% 50.8% 51.7% 49.8% 49.8% 51.9% 51.4% 50.5% 51.1% 48.0% 49.5% 48.9% 49.4% 50.3% 50.4% 51.4% 52.3% 51.8% 52.0% 51.4% 51.4% 51.4% 51.4%
Finance and insurance, net 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
GROSS PROFIT 15.6% 15.8% 15.5% 15.2% 15.0% 15.3% 15.5% 16.4% 16.8% 16.6% 16.7% 16.2% 16.1% 16.2% 17.1% 17.7% 16.5% 16.6% 16.4% 17.0% 16.6% 16.3% 16.6% 16.9% 16.8% 16.6% 16.5%
Gross Profit Composition
New vehicle 31.4% 30.7% 29.1% 29.2% 28.2% 27.9% 27.0% 24.0% 22.3% 22.0% 23.5% 23.9% 25.3% 25.7% 20.5% 18.4% 22.1% 24.6% 23.2% 22.0% 22.1% 21.8% 22.3% 23.1% 23.8% 23.6% 23.5%
Used vehicle 15.3% 15.0% 14.3% 13.2% 14.5% 15.3% 14.0% 11.9% 12.4% 13.6% 12.8% 13.6% 12.7% 11.4% 9.4% 13.4% 12.8% 11.9% 11.3% 13.9% 13.8% 13.6% 13.0% 12.9% 13.0% 13.5% 11.9%
Parts, service and collision repair 37.5% 37.8% 38.9% 39.8% 39.2% 39.0% 40.8% 46.0% 50.6% 47.5% 46.5% 43.9% 43.4% 45.5% 52.5% 54.0% 50.6% 47.3% 50.8% 48.2% 46.9% 46.8% 48.3% 47.7% 45.9% 45.1% 47.5%
Finance and insurance, net 15.8% 16.5% 17.6% 17.8% 18.2% 17.8% 18.3% 18.1% 14.8% 16.9% 17.2% 18.6% 18.5% 17.5% 17.6% 14.1% 14.5% 16.2% 14.7% 16.0% 17.3% 17.9% 16.4% 16.3% 17.3% 17.8% 17.1%
GROSS PROFIT 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
OPERATING EXPENSES: 0.1122840481 31,725 32,400 29,500 17,900 17,400
Selling, general and administrative 506,638 540,151 569,092 609,296 638,854 672,895 690,930 595,900 494,700 531,341 575,887 156,100 156,200 147,300 136,300 123,700 126,700 129,400 118,900 129,100 134,600 137,500 130,141 138,025 146,801 151,030 140,031
SG&A/Gross Profit 76.9% 77.3% 78.7% 79.2% 77.6% 76.7% 77.2% 81.2% 80.7% 77.9% 77.7% 80.1% 78.5% 80.6% 86.6% 83.5% 81.3% 79.5% 80.4% 79.3% 76.5% 77.3% 78.758% 78.2% 77.5% 77.1% 78.0%
memo: incremental SG&A/Gross 85% 120% 87% 54% 63% 104% 59% 84% 53.2% 75% 69.4% 68.6% 89.5% 181.3% 36.5% 39.5% 53.6% 64.4% 65.2% 90.7% 74.3% 68.7%
Depreciation and amortization 30,425 19,999 19,971 18,801 19,654 20,209 21,587 22,800 23,500 22,363 22,659 5,100 5,400 6,000 6,300 6,100 5,900 5,600 6,000 5,700 5,600 5,500 5,563 5,628 5,652 5,920 5,459
% of sales 0.72% 0.45% 0.43% 0.37% 0.36% 0.35% 0.37% 0.51% 0.64% 0.54% 0.51% 0.42% 0.44% 0.53% 0.69% 0.73% 0.63% 0.57% 0.67% 0.59% 0.53% 0.50% 0.56% 0.54% 0.50% 0.50% 0.50%
Impairment Charge 535,900 535,900
Other operating income (expense), net 0 0 0 0 0 0 1,231 (1,300) 1,500 200 0 300 (2,000) 100 300 400 400 200 400 400 400 (600)
Operating income 122,132 138,675 133,915 141,049 165,175 184,756 183,862 (422,100) 96,300 128,339 143,034 33,900 35,300 29,500 (520,800) 18,700 23,700 27,900 23,300 28,500 36,100 34,200 29,539 32,926 36,898 39,062 34,147
Memo: Non Core Items- Expense (Income) 0 0 0 0 0 0 0 507,200 0 0 0 400 2,300 3,400 501,100 0 1,800 2,400 300 0 0 3,100 0 0 0 0 0
Memo: Adj Operating Income 122,132 138,675 133,915 141,049 165,175 184,756 183,862 85,100 96,300 128,339 143,034 34,300 37,600 32,900 (19,700) 18,700 25,500 30,300 23,600 28,500 36,100 37,300 29,539 32,926 36,898 39,062 34,147
ADJ. EBITDA (before floorplan interest) 152,557 158,674 153,886 159,850 184,829 204,965 205,449 107,900 119,800 150,701 165,693 39,400 43,000 38,900 20,800 24,800 31,400 35,900 29,600 34,200 41,700 42,800 35,101 38,555 42,550 44,982 39,606
y/o/y growth 4.0% (3.0%) 3.9% 15.6% 10.9% 0.2% (47.5%) 11.0% 25.8% 9.9% (22.1%) (27.2%) (25.5%) (52.3%) (37.1%) (27.0%) (7.7%) 42.3% 37.9% 32.8% 19.2% 18.6% 12.7% 2.0% 5.1% 12.8%
margin 3.6% 3.6% 3.3% 3.2% 3.4% 3.6% 3.6% 2.4% 3.3% 3.7% 3.7% 3.3% 3.5% 3.5% 2.3% 3.0% 3.3% 3.7% 3.3% 3.6% 3.9% 3.9% 3.5% 3.7% 3.8% 3.8% 3.6%
ADJ. OPERATING EBITDA (after floorplan interest) 125,645 140,823 135,925 139,928 156,289 163,911 161,980 78,100 101,800 135,472 150,683 31,000 35,500 32,000 13,800 19,800 26,700 31,700 25,300 30,100 37,700 39,200 31,572 34,887 38,839 41,103 35,853
y/o/y growth 12.1% (3.5%) 2.9% 11.7% 4.9% (1.2%) (51.8%) 30.3% 33.1% 11.2% (21.2%) (25.8%) (23.1%) (58.3%) (36.1%) (24.8%) (0.9%) 83.3% 52.0% 41.2% 23.7% 24.8% 15.9% 3.0% 4.9% 13.6%
margin 3.0% 3.2% 2.9% 2.8% 2.9% 2.9% 2.8% 1.7% 2.8% 3.3% 3.4% 2.6% 2.9% 2.8% 1.5% 2.4% 2.8% 3.2% 2.8% 3.1% 3.6% 3.6% 3.2% 3.3% 3.4% 3.5% 3.3%
OTHER INCOME (EXPENSE): 0 -71.1701% -40.2156% -44.22% -1.09% 0.91%
Floor plan interest expense (26,912) (17,851) (17,961) (19,922) (28,540) (41,054) (43,469) (29,800) (18,000) (15,230) (15,010) (8,400) (7,500) (6,900) (7,000) (5,000) (4,700) (4,200) (4,300) (4,100) (4,000) (3,600) (3,530) (3,668) (3,711) (3,879) (3,753)
Other interest expense (44,491) (38,422) (40,238) (39,098) (40,842) (44,185) (39,244) (40,000) (38,200) (38,776) (39,964) (8,900) (9,300) (10,800) (11,000) (9,800) (9,000) (9,400) (9,500) (9,500) (9,500) (9,300) (10,476) (10,421) (10,023) (9,911) (9,610)
Interest income 2,520 1,200 499 803 966 5,112 4,335 1,500 200 529 4,335 1,000 300 100 100 0 100 0 100 0 100 0 429 1,965 1,041 900 429
Other, net 1,538 (499) (1,187) 908 226 4,216 1,032 0 0 0 0 0 0 0 0 0 0 0 100 0 0 0 0 0 0 0 0
Total other expense, net (70,593) (55,672) (59,319) (57,309) (68,190) (77,055) (77,346) (38,200) (57,700) (56,376) (50,639) (17,100) (17,300) (20,100) 16,300 (15,300) (14,100) (14,100) (14,000) (14,000) (13,800) (14,500) (14,076) (12,123) (12,693) (12,889) (12,934)
Income before income taxes 51,539 83,003 74,596 83,740 96,985 107,701 106,516 (460,300) 38,600 71,963 92,394 16,800 18,000 9,400 (504,500) 3,400 9,600 13,800 9,300 14,500 22,300 19,700 15,463 20,803 24,206 26,173 21,213
INCOME TAX EXPENSE: 0 0 0
Income tax expense 4,980 27,749 30,469 31,225 36,314 40,546 38,498 (135,000) 14,400 27,776 35,110 6,400 7,100 2,500 (151,000) 1,200 3,600 4,300 4,300 5,600 8,600 7,700 5,876 7,905 9,198 9,946 8,061
Income tax rate 9.7% 33.4% 40.8% 37.3% 37.4% 37.6% 36.1% 29.3% 37.3% 38.6% 38.0% 38.1% 39.4% 26.6% 29.9% 35.3% 37.5% 31.2% 46.2% 38.6% 38.6% 39.1% 38.0% 38.0% 38.0% 38.0% 38.0%
Tax adj upon conversion from L.L.C. to a corp. 11,553 0 0 0 0 0 0 0 0 0
Total income tax expense 4,980 39,302 30,469 31,225 36,314 40,546 38,498 (135,000) 14,400 27,776 35,110 6,400 7,100 2,500 (151,000) 1,200 3,600 4,300 4,300 5,600 8,600 7,700 5,876 7,905 9,198 9,946 8,061
Minority Interest 1,242 0 0 0 0 0 0 0 0 0 0
Income from continuing operations 45,317 43,701 44,127 52,515 60,671 67,155 68,018 (325,300) 24,200 44,187 57,285 10,400 10,900 6,900 (353,500) 2,200 6,000 9,500 5,000 8,900 13,700 12,000 9,587 12,898 15,007 16,227 13,152
Adj Income from cotinuing operations 10,700 12,300 8,300 (2,500) 2,200 7,200 10,200 6,100 8,900 13,700 13,900 9,587 12,898 15,007 16,227 13,152
Discontinued Operations, net of tax 297 (5,617) (4,174) (2,442) 2,675 (6,406) (3,329) (14,100) (10,800) (1,900) 0 (300) (500) (1,400) (11,900) (1,900) (500) (2,100) (4,800) (1,500) (900) 500 0 0 0 0 0
Extraordinaries (1,433) 0 (30,732) 0 (2,265) 0 (13,734) 0 0 0 0
Net income Reported 44,181 38,084 9,221 50,073 61,081 60,749 50,955 (339,400) 13,400 42,287 57,285 10,100 10,400 5,500 (365,400) 300 5,500 7,400 200 7,400 12,800 12,500 9,587 12,898 15,007 16,227 13,152
check (annual = sum qtrs): 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 (0.000) 0.000 0.000
GAAP EPS from continuing operations $1.32 $1.35 $1.62 $1.86 $2.02 $2.10 ($10.05) $0.76 $1.38 $1.89 $0.32 $0.34 $0.21 ($11.05) $0.07 $0.18 $0.29 $0.15 $0.27 $0.42 $0.36 $0.30 $0.43 $0.51 $0.56 $0.46
ADJ EPS $1.32 $0.41 $1.61 $1.78 $1.97 $1.63 $0.89 $0.78 $1.40 $1.95 $0.33 $0.38 $0.26 ($0.08) $0.07 $0.22 $0.31 $0.18 $0.27 $0.42 $0.42 $0.30 $0.43 $0.51 $0.56 $0.46
Basic EPS reported $1.15 $0.28 $1.54 $1.87 $1.83 $1.57 ($10.48) $0.42 $1.32 $1.89 $0.32 $0.33 $0.17 ($11.43) $0.01 $0.17 $0.23 $0.01 $0.23 $0.40 $0.39 $0.30 $0.43 $0.51 $0.56 $0.46
2009 2010E 2011E
In Thousands For Period Ended Jun 30 2002 2003 2004 2005 2006 2007 2008 1Q 2Q 3Q 2009 1Q 2Q 3Q 2010E 1Q 2Q 3Q 2011E
CURRENT ASSETS:
Cash and cash equivalents 22,613 106,711 28,093 57,194 129,170 53,354 91,600 35,700 41,900 33,700 84,700 29,400 27,000 9,100 47,970 8,750 8,750 8,750 8,750
Contracts-in-transit 91,190 93,881 105,360 122,250 126,012 116,135 63,800 54,100 54,400 39,600 61,800 69,400 63,100 61,500 64,781 69,484 62,108 64,350 59,337
Receivable Days 8 8 7 9 8 8 6 6 5 4 6 7 5 5 6 6 5 5 5
Accounts receivable (net of allowance) 96,090 114,201 148,196 167,203 167,562 132,830 82,200 76,400 85,800 82,000 79,000 89,800 81,500 84,600 86,374 81,064 86,952 90,090 83,072
Receivable Days 8 9 10 12 11 9 8 8 8 8 8 8 7 7 8 7 7 7 7
Accounts Receivable 187,280 208,082 253,556 289,453 293,574 248,965 146,000 130,500 140,200 121,600 140,800 159,200 144,600 146,100 151,155 150,548 149,060 154,440 142,409
Receivable Days 16 17 17 20 20 17 15 14 14 11 14 15 12 12 14 13 12 12 12
Current portion of restricted marketable securities 1,499 1,591 1,645 913 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
New vehicles 477,453 517,227 619,098 556,141 616,275 622,630 562,200 443,200 414,600 308,600 394,200 381,900 400,600 404,700 402,267 417,952 422,909 441,997 427,697
New Vehicle Inventory Days 75 74 72 68 73 77 107 96 78 55 78 70 66 66 72 70 66 66 69
Used vehicles 86,392 90,683 98,071 111,000 115,927 101,131 59,900 69,500 71,000 76,500 64,100 74,800 73,500 77,700 70,549 82,921 87,933 81,538 76,680
Used Vehicle Inventory Days 32 35 30 36 35 31 29 33 29 31 28 29 26 26 27 30 29 26 27
Parts and accessories 40,946 42,487 44,388 42,650 43,111 46,231 44,500 43,800 43,700 41,200 41,400 41,600 43,100 43,200 36,032 40,656 42,347 41,695 39,435
Parts and Accessories Inventory Days 65 62 54 49 49 48 49 47 49 50 50 50 52 51 45 46 47 46 45
Inventories 604,791 650,397 761,557 709,791 775,313 769,992 666,600 556,500 529,300 426,300 499,700 498,300 517,200 525,600 508,848 541,528 553,189 565,230 543,811
Inventory Days 62 63 60 58 61 62 81 73 61 48 61 56 53 53 57 56 53 53 55
Deferred income taxes 9,044 8,811 15,576 19,825 13,961 12,291 10,900 10,900 8,900 8,800 8,600 7,900 7,200 5,800 5,800 5,800 5,800 5,800 5,800
as % of LTM Revenue 0.20% 0.19% 0.31% 0.36% 0.24% 0.21% 0.24% 0.26% 0.23% 0.24% 0.23% 0.21% 0.18% 0.14% 0.14% 0.14% 0.14% 0.13% 0.13%
Prepaid and other current assets 24,556 36,417 49,526 56,506 55,099 34,075 54,200 53,500 61,500 46,000 51,500 55,000 52,600 64,000 49,684 43,284 42,346 46,931 43,328
as % of COGS 2.8% 3.9% 4.2% 5.1% 4.7% 3.0% 7.1% 7.8% 7.8% 5.6% 6.9% 6.9% 5.9% 7.0% 6.0% 5.0% 4.5% 4.8% 4.8%
Assets held for sale 29,533 33,553 51,498 25,947 73,745 50,400 64,300 31,500 64,200 30,300 28,400 20,000 12,800 12,800 12,800 12,800 12,800 12,800
TOTAL CURRENT ASSETS 849,783 1,041,542 1,143,506 1,185,180 1,293,064 1,192,422 1,019,700 851,400 813,300 700,600 815,600 778,200 768,600 763,400 776,257 762,709 771,945 793,951 756,898
PP&E, net 286,930 266,991 195,788 193,457 202,584 238,581 476,700 468,100 468,900 438,400 449,100 440,900 441,900 444,700 452,538 453,159 456,257 459,087 457,378
Goodwill 402,133 404,143 461,650 457,405 447,996 483,301 0 0 0 0 0 0 0 0 0 0 0 0 0
Restricted Cash and Marketable Securities 4,892 2,974 2,478 4,247 7,270 0 0 8,000 0 0 0 0 0 0 0 0 0 0
Other Assets 61,906 98,629 94,537 90,511 79,923 101,996 154,500 152,800 136,100 132,600 136,200 127,500 128,200 118,400 127,639 127,814 128,688 129,486 129,004
as % of noncurrent assets 8.2% 12.8% 12.5% 12.1% 10.8% 12.4% 24.5% 24.6% 22.2% 23.2% 23.3% 22.4% 22.5% 21.0% 22.0% 22.0% 22.0% 22.0% 22.0%
TOTAL ASSETS 1,605,644 1,814,279 1,897,959 1,930,800 2,030,837 2,016,300 1,650,900 1,472,300 1,426,300 1,271,600 1,400,900 1,346,600 1,338,700 1,326,500 1,356,433 1,343,683 1,356,891 1,382,524 1,343,280
CURRENT LIABILITIES:
Vehicle floor plan payable (trade) 540,419 602,167 650,948 204,044 319,896 193,748 478,200 408,200 359,700 244,000 357,700 325,200 294,500 283,300 289,632 319,733 315,913 318,238 307,942
Vehicle floor plan payable (non-trade) 410,338 380,881 480,203 134,600 82,600 96,400 66,400 77,000 59,500 57,300 72,300 72,408 56,423 64,705 79,559 76,985
Short term debt (considered LTD??) 0 0 0 0 50,000 0 0 0 0 0 0 0 0 0 6,548 6,862 0
Secured Line (not active)
Current maturities of long-term debt 35,009 33,250 33,880 24,522 23,144 1,736 58,800 8,700 8,600 8,200 9,000 8,700 21,500 9,100 9,100 9,100 9,100 9,100 9,100
Accounts payable 40,120 42,882 53,078 72,432 63,951 72,113 46,200 38,300 46,115 47,946 43,000 43,691 49,599 48,898 45,003 48,093 51,704 53,697 49,574
Payable Days 4 4 4 6 5 6 6 5 5 5 5 5 5 5 5 5 5 5 5
Deferred income taxes 0 0 0 0 0
as % of LTM Revenue
Accrued liabilities 77,325 78,727 87,446 100,043 89,296 114,008 105,100 96,900 97,785 83,854 105,200 95,609 103,801 103,101.76 99,007 96,186 93,068 96,655 109,063
Accrued Days 8 8 7 8 7 9 13 13 11 9 13 11 11 10 11 10 9 9 11
Liabilities Associated with assets held for sale 24,732 22,158 26,847 3,887 9,859 31,600 40,900 17,900 27,700 6,900 1,500 0 0 0 0 0 0 0
Total current liabilities 692,873 781,758 847,510 838,226 881,055 871,667 854,500 675,600 626,500 478,100 598,800 534,200 526,700 516,700 515,151 529,535 534,491 557,249 552,664
LT Debt 440,143 559,128 492,536 472,427 454,010 473,851 540,900 540,500 538,900 520,600 528,800 527,600 513,400 500,700 522,486 490,562 490,084 483,373 444,098
8% Sr. Sub Notes due 2014 (net of hedges) 172,767 173,800 174,100 174,400 174,600 174,900 175,200 175,400 175,700 0 0 0 0 0
7.625% Sr Sub Notes due 2017 150,000 143,200 143,200 143,200 143,200 143,200 143,200 143,200 143,200 143,200 143,200 143,200 143,200 143,200
3% Sr Sub Convertible Notes due 2012 115,000 62,000 55,100 55,500 56,000 49,800 50,200 50,600 27,500 27,500 27,500 27,500 27,500 2,111
Mortgage Notes Payabe (fixed and variable) 25,837 177,500 176,300 174,100 154,900 169,900 167,700 165,700 163,400 160,886 128,962 121,937 114,912 107,887
Bridge Loans 8,320 0 0 0 0 0 0 0 0 0 0 0 0 0
Other 3,663 600 500 300 100 0 0 0 0 0 0 0 0 0
Additional Bonds 0 0 0 0 0 0 0 0 200,000 200,000 200,000 200,000 200,000
Additional Converts 0 0 0 0 0 0 0 0 0 0 0 0 0
Less Current Portion (1,736) (58,800) (8,700) (8,600) (8,200) (9,000) (8,700) (21,500) (9,100) (9,100) (9,100) (9,100) (9,100) (9,100)
Deferred income taxes 29,972 22,179 40,360 44,287 53,991 51,741 0 0 0 0 0 0 0 0 0 0 0 0 0
as % of LTM Revenue <-- how forecast better? 0.7% 0.5% 0.8% 0.8% 0.9% 0.9% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Other Liabilities 15,705 17,507 35,821 28,094 29,948 34,816 28,900 29,700 27,600 31,900 29,700 32,300 32,900 30,300 30,409 28,551 28,523 28,133 25,847
as % of noncurrent liabilities 3.2% 2.9% 6.3% 5.2% 5.6% 6.2% 5.1% 5.2% 4.9% 5.8% 5.3% 5.8% 6.0% 5.7% 5.5% 5.5% 5.5% 5.5% 5.5%
TOTAL LIABIILITIES 1,178,693 1,380,572 1,416,227 1,383,034 1,419,004 1,432,075 1,424,300 1,245,800 1,193,000 1,030,600 1,157,300 1,094,100 1,073,000 1,047,700 1,068,046 1,048,648 1,053,099 1,068,755 1,022,609
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value, 10,000,000 shares auth 0 0 0
Common stock, $.01 par value, 90,000,000 shares auth 340 340 342 344 351 363 400 400 400 400 400 400 400 400 400 400 400 400 400
Additional paid-in capital 410,718 411,082 413,094 417,055 431,725 440,434 453,500 454,300 453,800 455,500 457,300 459,400 460,700 461,700 461,700 461,700 461,700 461,700 461,700
Contributed capital 0 0 0
Retained earnings 22,645 37,832 87,905 148,986 196,393 219,356 (147,200) (146,900) (141,400) (134,000) (133,800) (126,400) (113,600) (101,100) (91,513) (78,615) (63,608) (47,381) (34,229)
Treasury stock, at cost; 1,590,013 and 772,824 shares (6,630) (15,064) (15,032) (15,032) (14,559) (73,319) (74,500) (74,500) (74,600) (74,600) (74,600) (74,700) (74,900) (74,900) (74,900) (81,150) (87,400) (93,650) (99,900)
Accumulated other comprehensive loss (122) (483) (4,577) (3,587) (2,077) (2,609) (5,600) (6,800) (4,900) (6,300) (5,700) (6,200) (6,900) (7,300) (7,300) (7,300) (7,300) (7,300) (7,300)
TOTAL STOCKHOLDER'S EQUITY 426,951 433,707 481,732 547,766 611,833 584,225 226,600 226,500 233,300 241,000 243,600 252,500 265,700 278,800 288,387 295,035 303,792 313,769 320,671
TOTAL LIABIILITIES AND STOCKHOLDER'S EQUITY 1,605,644 1,814,279 1,897,959 1,930,800 2,030,837 2,016,300 1,650,900 1,472,300 1,426,300 1,271,600 1,400,900 1,346,600 1,338,700 1,326,500 1,356,433 1,343,683 1,356,891 1,382,524 1,343,280
Check: 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
EBITDA 31,979 31,485 42,764 46,744 47,541 43,564 20,800 24,800 31,400 35,900 29,600 34,200 41,700 42,800 35,101 38,555 42,550 44,982 39,606
YOY % Chg (31.9%) 11.4% (4.5%) (13.3%) (16.6%) (46.5%) (37.1%) (27.0%) (7.7%) 42.3% 37.9% 32.8% 19.2% 18.6% 12.7% 2.0% 5.1% 12.8%
Margin 3.0% 2.8% 3.1% 3.5% 3.4% 3.2% 2.3% 3.0% 3.3% 3.7% 3.3% 3.6% 3.9% 3.9% 3.5% 3.7% 3.8% 3.8% 3.6%
LTM DATA 543,271
Revenue 4,423,653 4,661,784 5,046,648 5,475,897 5,748,331 5,759,334 4,487,000 4,122,700 3,826,200 3,682,100 3,662,300 3,784,000 3,903,300 4,014,200 4,108,904 4,191,157 4,259,829 4,349,967 4,448,464
COGS 3,724,828 3,938,806 4,277,502 4,652,214 4,870,471 4,864,186 3,753,200 3,435,600 3,182,100 3,058,000 3,047,800 3,154,700 3,254,000 3,349,800 3,427,062 3,495,635 3,550,856 3,622,782 3,706,884
EBITDA 140,823 135,925 139,928 156,289 163,911 161,980 112,300 101,100 92,300 92,000 103,500 113,800 124,800 132,300 138,572 143,359 144,498 146,401 150,683
Interest (38,422) (40,238) (39,098) (40,842) (44,185) (39,244) (40,000) (40,900) (40,600) (39,200) (37,700) (37,400) (37,900) (37,800) (38,776) (39,696) (40,219) (40,830) (39,964)
Gross Balance Sheet Debt (non floorplan) 440,143 559,128 492,536 472,427 454,010 473,851 540,900 540,500 538,900 520,600 528,800 527,600 513,400 500,700 522,486 490,562 490,084 483,373 444,098
KEY CREDIT METRICS 2.5% 3.3% 79.72
DEBT/EBITDA 3.13x 4.11x 3.52x 3.02x 2.77x 2.93x 4.82x 5.35x 5.84x 5.66x 5.11x 4.64x 4.11x 3.78x 3.77x 3.42x 3.39x 3.30x 2.95x
Rent Expense $50.7 $45.5 $40.4 $40.4 $40.4 $40.4 $40.4 $40.4 $40.4 $40.4 $40.4 $40.4 $40.4 $40.4
Adj Debt $828.8 $859.4 $823.3 $821.7 $803.4 $811.6 $810.4 $796.2 $783.5 $805.3 $773.4 $772.9 $766.2 $726.9
Adj Debt/EBITDAR 3.90x 5.45x 5.82x 6.19x 6.07x 5.64x 5.26x 4.82x 4.54x 4.50x 4.21x 4.18x 4.10x 3.80x
TD/TC 50.8% 56.3% 50.6% 46.3% 42.6% 44.8% 70.5% 70.5% 69.8% 68.4% 68.5% 67.6% 65.9% 64.2% 64.4% 62.4% 61.7% 60.6% 58.1%
EBITDA/Interest 3.67x 3.38x 3.58x 3.83x 3.71x 4.13x 2.81x 2.47x 2.27x 2.35x 2.75x 3.04x 3.29x 3.50x 3.57x 3.61x 3.59x 3.59x 3.77x
EBITDAR/Interest+Rent 2.36x 1.85x 1.74x 1.64x 1.66x 1.84x 1.98x 2.11x 2.21x 2.26x 2.29x 2.29x 2.30x 2.38x
LTM FCF (FFO - Floorplan chgs - Non Fin Capex - Dividends) 25,793 22,402 50,907 52,701 60,393 57,905 8,317 12,117 30,217 46,666 73,600 90,400 80,600 88,900 68,920 49,963 41,570 27,879 44,016
COVENANT ANALYSIS
Current Ratio 1.2x 1.3x 1.3x 1.5x 1.4x 1.5x 1.5x 1.5x 1.5x 1.4x 1.4x 1.4x 1.4x
Threshold 1.2x 1.2x 1.2x 1.2x 1.2x 1.2x 1.2x 1.2x 1.2x 1.2x 1.2x 1.2x 1.2x
Cushion (0.0x) 0.1x 0.1x 0.3x 0.2x 0.3x 0.3x 0.3x 0.3x 0.2x 0.2x 0.2x 0.2x
Fixed Charge Coverage Ratio 1.60x 1.46x 1.31x 1.32x 1.35x 1.54x 1.59x 1.68x 1.63x 1.79x 1.77x 1.77x 1.85x
Cushion 0.4x 0.3x 0.1x 0.1x 0.2x 0.3x 0.4x 0.5x 0.4x 0.6x 0.6x 0.6x 0.7x
Sr. Leverage Ratio 2.0x 2.2x 1.9x 1.7x 1.6x 1.5x 1.3x 1.2x 2.6x 2.3x 2.3x 2.2x 2.0x
Cushion 1.0x 0.8x 1.1x 1.3x 1.4x 1.5x 1.7x 1.8x 0.4x 0.7x 0.7x 0.8x 1.0x
LIQUIDITY ANALYSIS
Cash 91,600 35,700 41,900 33,700 84,700 29,400 27,000 9,100 47,970 8,750 8,750 8,750 8,750
Revolver (working capital portion of committed credit facility) 122,500 122,500 122,500 121,000 121,000 121,000 121,000 121,000 121,000 121,000 114,452 114,138 121,000
Revolver expansion ( up to $50 mm under certain conditions) 0 0 0 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Gross Liquidity 214,100 158,200 164,400 204,700 255,700 200,400 198,000 180,100 218,970 179,750 173,202 172,888 179,750
Non floorplan Maturities 0 0 0 0 0 0 0 0 0 0 0 0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
2001
2002
2003
2004
2005
2006
2007
2008
2009 E
2010 E
2011 E
In Thousands 2001 2002 2003 2004 2005 2006 2007 2008E 2009E 2010E 2011E 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1QA 2QA 3QA 4Q 1Q 2Q 3Q 4QE 1QE 2QE 3QE 4QE 1QE 2QE 3QE 4QE
CASH FLOW FROM OPERATING ACTIVITIES:
Net income 44,184 38,085 15,187 50,073 61,081 60,749 50,955 (338,000) 13,400 42,287 57,285 6,676 10,994 16,188 10,326 5,162 12,779 14,645 5,499 7,097 12,273 16,244 (20,427) 10,364 14,748 12,116 12,845 9,640 15,986 14,953 20,502 12,553 19,004 17,179 12,013 433 20,559 19,010 10,953 10,100 10,400 6,900 (365,400) 300 5,500 7,400 200 7,400 12,800 12,500 9,587 12,898 15,007 16,227 13,152
Adjustments to reconcile net income to net cash provided by operating activities 0 0 0 0 0 0 0
Depreciation and amortization 30,344 23,928 20,212 18,128 19,582 20,209 21,492 23,400 23,500 22,363 22,659 7,007 7,695 7,790 7,852 5,756 6,106 5,636 6,430 5,947 3,919 5,141 5,205 4,572 4,753 4,432 4,371 4,693 4,767 4,930 5,192 4,975 5,113 5,076 5,045 5,328 5,348 5,385 5,431 5,100 5,400 7,200 5,700 6,100 5,900 5,300 6,200 5,700 5,600 5,500 5,563 5,628 5,652 5,920 5,459
Depreciation and amortization from discontinued operations 0 0 1,325 2,723 1,592 312 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,232 39 54 634 707 693 689 557 572 276 187 64 111 34 103 27 8 0 (35)
Impairment Expenses 0 0 37,930 0 0 0 0 550,900 5,500 0 0 0 0 0 37,930 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 550,900 0 0 0 5,500 0 0 0 0 0 0 0 0
Change in allowance for doubtful accounts 0 0 249 (298) (857) (568) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 437 (341) 153 (203) (124) (396) 425 210 (59) (1,167) 159 (216) (189) (121) (42) (172) 173 20 (21)
(Gain) loss on sale of discontinued operations, net of related taxes 0 852 123 0 (637) (4,144) 0 0 0 0 0 0 0 0 0 (559) 904 0 507 (617) 3 317 420 168 306 263 (737) (386) 376 426 (1,053) (53) (2,564) 541 (2,068) 2,001 0 0 (2,001)
Stock-based compensation 1,900 2,800 4,100 0 1,300 300 (400) 700 1,500 (600) 700 1,200 1,900 1,200 1,000
Deferred income taxes (499) 15,682 (6,927) 13,903 (916) 8,721 6,864 (155,800) 18,200 19,600 0 0 0 0 (499) 11,115 2,397 1,242 928 (1,807) (3) 4,428 (9,545) 0 0 0 13,903 0 0 0 (916) 0 (860) (361) 9,942 (903) 3,641 3,507 619 2,900 2,500 4,300 (165,500) 100 16,600 (1,200) 2,700 8,100 0 11,500 0 0 0 0 0
Loss from unconsolidated affiliates, net 3,248 100 0 0 0 0 0 0 0 0 0 1,000 0 0 2,248 100 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Loss on sale of assets 384 75 (750) 79 0 1,144 0 0 0 0 0 0 0 0 384 0 0 0 75 313 46 95 (1,204) 0 0 0 79 0 0 0 0 0 0 914 230 17,737 (17,737) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(Gain) Loss on extinquishment of LT debt 18,523 (32,500) (100) 1,300 0 18523 0 0 1,700 (34,200) 0 0 0 (100) 0 0 1,300 0 0 0 0 0
Loaner Vehicle Amortization 8,500 7,400 5,800 0 2,000 2,100 1,300 3,100 2,200 2,000 1,700 1,500 1,600 1,600 2,600
Amortization of deferred finance fees 3,568 4,548 5,333 1,579 2,192 2,359 0 0 0 0 0 875 1,035 744 914 1,044 1,084 1,084 1,336 1,278 1,304 1,351 1,400 533 637 61 348 343 670 593 586 573 585 601 600 627 657 645 (1,929)
Other 2,673 0 4,353 6,256 6,787 15,260 22,177 8,100 9,100 6,600 0 1,433 0 0 1,240 0 0 0 0 0 0 0 4,353 928 2,615 8,588 (5,875) 1,315 1,678 2,202 1,592 2,349 3,650 939 8,322 5,179 24,087 4,427 (11,516) 3,200 3,600 (300) 1,600 900 1,700 6,100 400 3,900 3,500 (800)
Change in operating assets and liabilities, net of effects from acq. and divestitures 0 0 0 0 0 0 0 0 0 0 0
Contracts-in-transit (16,490) 1,854 (2,691) (12,902) (16,890) (3,762) 9,877 52,300 2,000 (2,981) 5,444 4,211 (9,207) 754 (12,248) 6,827 1,057 4,557 (10,587) 2,254 (13,637) 16,193 (7,501) (3,492) 1,010 7,185 (17,605) 3,522 (10,594) 30,471 (40,289) 23,292 (3,738) 7,474 (30,790) 10,292 (1,416) 19,034 (18,033) 12,300 9,200 31,400 (600) 9,700 (300) 14,800 (22,200) (7,600) 6,300 1,600 (3,281) (4,703) 7,375 (2,242) 5,013
Accounts receivable, net (20,025) (30,570) (38,177) (53,664) (35,129) (20,190) 14,418 30,700 (18,600) (24,474) 3,302 (15,741) (6,744) 4,315 (1,855) (6,403) (11,087) (8,319) (4,761) (1,504) (26,714) (2,720) (7,239) (8,767) (26,744) (1,734) (16,419) (7,531) (2,844) 3,937 (28,691) 9,839 (15,060) 5,755 (20,724) 20,786 (9,902) (2,150) 5,684 9,300 7,800 1,300 12,300 700 (14,900) (1,600) (2,800) (17,500) 3,400 (8,600) (1,774) 5,310 (5,888) (3,138) 7,018
Proceeds from the sale of accounts receivable 17,624 17,136 19,958 19,046 16,867 19,591 20,284 20,500 21,900 17,200 0 4,967 3,845 4,406 4,406 4,448 4,414 3,735 4,539 4,319 5,674 5,030 4,935 5,248 4,728 4,246 4,824 4,157 3,969 4,264 4,477 4,649 4,669 5,029 5,244 5,636 4,958 4,826 4,864 5600 5100 4700 5100 5400 5400 5300 5800 5800 5800 5600
Inventories 106,081 (79,898) (3,553) (81,983) 56,541 (47,010) 59,770 137,400 206,800 16,852 (34,963) 23,792 30,868 66,581 (15,160) (17,233) (3,027) 34,290 (93,928) (26,696) 2,232 84,981 (64,070) (47,020) (16,715) 49,507 (67,755) (30,948) 62,653 100,971 (76,135) (63,645) (1,920) 76,978 (58,423) 609 (7,606) 83,643 (16,876) (8,700) 54,300 71,700 20,100 106,600 51,700 109,000 (60,500) 7,500 (8,400) 1,000 16,752 (32,680) (11,661) (12,041) 21,419
Prepaid and other assets 0 0 0 (38,376) (35,869) (36,733) (44,706) (43,600) 0 14,316 6,356 0 0 0 (5,953) (501) (15,726) (16,196) (6,190) (7,000) (5,924) (16,755) (7,468) (1,688) (16,178) (11,399) (17,397) 1,302 (12,515) (16,096) (7,600) (21,200) (10,300) (4,500) 14,316 6,400 938 (4,585) 3,603
Accounts payable and accrued liabilities 12,344 8,145 11,446 16,894 25,776 (8,198) 11,681 (35,200) (4,600) (8,989) 14,626 2,728 3,746 (1,309) 7,179 3,355 1,754 9,786 (6,750) 3,015 7,692 6,153 (5,414) 17,344 (766) 2,667 (2,351) 25,495 (12,398) (10,716) 23,395 (15,058) (4,313) 14,571 (3,398) 498 622 (22,488) 33,049 (12,100) 12,000 (30,900) (4,200) (16,300) 7,900 (12,700) 16,500 (9,200) 14,000 (5,800) (7,989) 268 494 5,579 8,285
Other (6,099) (5,876) (5,054) 0 (795) 5,056 (1,687) 0 (44,300) (44,500) 0 (3,144) 2,428 (1,868) (3,515) (2,077) 3,025 3,107 (9,931) 5,032 (6,885) 7,474 (10,675) 0 0 (2,153) 2,153 (2,430) 3,200 4,217 (5,782) 3,137 913 1,342 (336) (891) (1,010) 323 (109) (11,100) (30,300) 11,800 (14,700) (12,900) (7,800) (23,800) 0 0 0 0 0
Other long-term assets and liabilities 0 0 0 4,345 0 0 220 1,200 2,100 (8,130) (5,928) 0 0 0 0 0 0 0 0 0 0 0 0 (4,445) (2,757) 7,202 4,345 0 0 0 0 0 0 0 0 69 (69) (965) 1,185 (2,800) 2,700 3,100 (1,800) 1,000 600 (1,000) 1,500 1,500 (1,200) 700 (9,130) (2,033) (902) (1,189) (1,804)
Floor plan notes payable (Gaap CFO portion) (80,812) 73,945 37,646 36,334 (139,781) 115,785 (120,532) 299,400 (134,200) (74,968) 18,309 (13,109) (6,416) (83,082) 21,795 4,865 (1,833) (33,855) 104,768 30,607 15,186 (108,318) 100,171 12,775 12,303 (42,587) 53,843 (2,554) (138,566) (34,322) 35,661 98,695 28,286 (37,097) 25,901 (94,219) (27,344) (15,004) 16,035 (20,900) 12,200 260,800 47,300 (65,000) (64,200) (115,000) 110,000 (37,900) (32,200) (11,200) 6,332 30,101 (3,820) 2,324 (10,296)
Floor plan borrowings non-manufacturer affiliated (Gaap CFF portion) 0 0 0 2,360,243 3,160,682 2,476,160 2,736,136 1,596,400 329,600 368,608 277,673 540,196 645,070 558,827 616,150 693,071 1,060,044 701,269 706,298 677,249 595,928 565,189 637,794 663,002 736,155 682,802 654,177 650,000 700,000 111,800 134,600 82,600 96,400 66,400 84,200 90,200 99,600 106,400 72,408 56,423 64,705 79,559 76,985
Floor plan repayments non-manufacturer affiliated (Gaap CFF portion) 0 0 0 (2,342,294) (3,048,147) (2,518,438) (2,658,613) (2,386,300) (384,300) (373,200) (273,096) (521,223) (609,659) (626,873) (584,539) (654,598) (975,045) (776,495) (642,009) (747,686) (623,672) (574,675) (572,405) (602,008) (712,940) (716,544) (627,121) (639,300) (665,200) (957,600) (124,200) (106,200) (96,000) (104,400) (77,700) (107,600) (101,900) (91,400) (72,300) (72,408) (56,423) (64,705) (79,559)
(378,900) 0 (42,700) (359,000) 22,800 (52,000) 13,800 (30,000) 10,600 (17,500) (2,200) 15,000 108 (15,985) 8,282 14,854 (2,574)
Net cash provided by operating activities 96,525 68,006 96,610 (17,863) (40,456) 128,581 69,336 529,200 110,900 (13,624) 87,091 20,695 38,244 14,519 23,067 16,400 17,573 35,908 (1,875) 29,238 2,759 36,067 28,546 (17,314) (5,800) 34,364 (29,113) (107) (77,590) 115,111 (77,870) 73,686 31,999 82,676 (59,780) (44,360) (3,729) 87,698 29,727 (300) 106,400 352,500 70,600 42,100 (13,000) 30,600 51,200 (41,700) 4,600 (6,900) 30,376 21,189 7,196 6,857 51,850
Adjusted CFO 86 72,079 86,303 146,859 (260,700) 56,200 (18,216) 91,668 1,659 29,611 (33,682) 2,498 38,366 7,409 39,885 (13,581) 3,249 4,255 73,190 5,609 16,634 19,486 53,956 56,783 10,400 141,200 (493,300) 81,000 18,500 (12,600) (7,400) 57,700 (59,100) 2,300 8,100 30,484 5,204 15,477 21,711 49,276
CASH FLOW FROM INVESTING ACTIVITIES: -1.18% -1.30% -1.17% -0.91% -0.66% -0.53% -0.60% -0.78% -0.27% -0.61% -0.67% 0 458,600 529,200 59,700 110,900
Capital expenditures - internally financed (50,032) (57,477) (54,633) (45,881) (36,123) (30,307) (34,663) (35,000) (10,000) (25,000) (30,000) (10,326) (16,822) (11,603) (11,281) (8,593) (15,030) (14,479) (19,375) (15,223) (9,390) (8,821) (21,199) (6,291) (12,100) (17,802) (9,688) (9,198) (7,744) (9,656) (9,525) (5,534) (10,650) (6,630) (7,493) (10,230) (8,347) (6,812) (9,274) (8,500) (8,700) (15,649) (5,034) (2,200) (2,600) (1,300) (2,200) (3,400) (4,100) (8,400) (9,100) (8,750) (8,750) (8,750) (3,750)
Capital expenditures - externally financed 0 0 0 (23,591) (41,940) (14,969) (22,471) (25,000) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (6,015) (10,115) (4,267) (3,194) (1,577) (16,659) (6,119) (17,585) (6,410) (705) (4,756) (3,098) (2,687) (7,598) (5,329) (6,857) (7,100) (7,200) (12,951) (4,166) 0 0 0 0
Capex Total (50,032) (57,477) (54,633) (69,472) (78,063) (45,276) (57,134) (60,000) (10,000) (25,000) (30,000) (10,326) (16,822) (11,603) (11,281) (8,593) (15,030) (14,479) (19,375) (15,223) (9,390) (8,821) (21,199) (12,306) (22,215) (22,069) (12,882) (10,775) (24,403) (15,775) (27,110) (11,944) (11,355) (11,386) (10,591) (12,917) (15,945) (12,141) (16,131) (15,600) (15,900) (28,600) (9,200) (2,200) (2,500) (2,500) (2,500) (3,400) (4,100) (8,400) (9,100) (8,750) (8,750) (8,750) (3,750)
Construc. Adv. Assoc w/ Sale Leasebacks 0 0 0 10,138 14,630 3,383 11,405 0 0 0 0 0 0 0 0 0 0 0 0 4,386 5,107 595 50 2,032 563 1,532 10,503 0 3,118 265 0 0 3,551 7,854 0 1,900 0 (100)
Construction Reimbursements 0 (53,198)
Proceeds from the sale of assets 2,083 692 3,578 41,910 102,589 52,797 11,650 484 437 1,152 10 0 1,077 303 (688) 376 322 (16) 2,896 1,893 1,629 8,273 30,115 3,272 4,717 4,805 89,795 9,275 32,847 1,569 9,106 8,389 (48) 73 3,236 8,600 12,100 5,400 (700) 3,200 19,000 3,100 (200) 9,600 1,600 4,300 30,000
Proceeds from sale of discontinued operations 0 5,173 7,845 0 (24,613) 0 0 0 0 0 0 3,377 1,461 0 335 5,776 1,434 635 0 0 0 0 0 0 0 (24,613) 0 0 0 0 0 0 0
Acquisitions (net of cash acquired) (50,150) (20,459) (79,866) (55,125) 0 0 (117,123) 0 (0) (0) (27,500) (2,224) (5,915) (32,852) (9,159) 0 (9,402) (5,186) (5,871) (250) (39,283) (32,845) (7,488) (47,205) 0 (7,920) 0 (11,562) (13,059) 24,621 0 0 0 0 0 (34,081) (36,404) (46,638) (41,800) 0 (100) 0 (0) (0) (0) (0) 0 0 0 (0) (27,500) 0 0 0
Purchases of Previously leased real estate (207,900) 0 0
Proceeds from restricted marketable securities 885 1,826 1,826 0 0 0 0 568 (176) 833 (340) 913 0 913 0 913 0 913 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Net purchase of restricted investments 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (1,450) 1,450 (750) 750 0 0 0 (177) 177 0 0 (529) 529 0 0 0 0 0
Net issuance of finance contracts 121 (45) (2,846) 0 0 0 0 (571) (2,022) (590) 3,304 (850) 731 (157) 231 (1,464) (1,414) 60 (28) 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Other investing activities (1,200) (1,069) (750) 502 (45,693) (2,077) (3,694) (2,500) (1,200) 0 0 0 (1,901) 201 948 (317) 0 0 0 (750) 913 0 433 (844) 0 (878) 171 (44,986) 0 (746) (551) (780) (1,827) (1,083) (502) (282) (1,000) 1,300 (500) (300) (400) (100) (100) (100) (200) (200) 4,700 (4,300) 0 0 0 0
Net cash used in investing activities (98,293) (71,359) (124,846) (72,047) (31,150) 8,827 (154,896) (62,500) (10,000) (25,000) (57,500) (13,269) (24,498) (43,060) (17,466) (7,054) (20,962) (17,658) (25,685) (11,322) (46,881) (40,824) (25,819) (58,312) (62,684) (12,768) 8,519 (5,648) (31,386) (22,326) 28,210 (3,198) 24,393 (10,103) (2,265) (6,355) (47,606) (41,120) (59,815) (47,900) (210,400) (23,800) (10,300) 600 16,300 1,700 (2,500) 6,000 (2,700) 600 (13,400) (6,250) (8,750) (8,750) (3,750)
CASH FLOW FROM FINANCING ACTIVITIES: 0 (282,100) (292,400) 16,100
Net cash provided by financing activities 15,033 (34,540) 112,334 64,490 100,708 (65,432) 9,744 (198,600) (131,000) (13,606) (98,811) (4,662) 2,605 15,529 1,561 8,260 (7,580) (33,753) (1,467) (2,452) 30,620 28,986 55,180 14,901 37,377 (18,220) 30,432 16,915 80,771 (77,835) 80,857 (67,808) (27,169) (28,195) 57,740 16,042 5,518 (54,464) 42,648 20,500 113,100 (342,100) 9,900 (98,600) 2,900 (40,500) 2,300 (19,600) (4,300) (11,600) 21,894 (54,159) 1,554 1,893 (48,100)
Adjusted CFF (208,500) (198,600) (133,900) 110,700
Net increase in cash and cash equivalents 13,265 (37,893) 84,098 (25,420) 29,102 71,976 (75,816) 268,100 (30,100) (52,230) (69,220) 2,764 16,351 (13,012) 7,162 17,606 (10,969) (15,503) (29,027) 15,464 (13,502) 24,229 57,907 (60,725) (31,107) 3,376 9,838 11,160 (28,205) 14,950 31,197 2,680 29,223 44,378 (4,305) (34,673) (45,817) (7,886) 12,560 (27,700) 9,100 (13,400) 70,200 (55,900) 6,200 (8,200) 51,000 (55,300) (2,400) (17,900) 38,870 (39,220) 0 0 0
CASH AND CASH EQUIVALENTS, beginning of period $47,241 60,506 22,613 106,711 81,291 110,393 182,369 106,553 374,653 344,553 292,323 47,241 50,005 66,356 53,344 60,506 78,112 67,143 51,640 22,613 38,077 24,575 48,804 106,711 45,986 14,879 18,255 28,093 39,253 11,049 25,998 57,194 59,874 89,097 133,475 129,170 94,497 48,680 40,794 53,354 25,700 34,800 21,400 91,600 35,700 41,900 33,700 84,700 29,400 27,000 9,100 47,970 8,750 8,750 8,750
CASH AND CASH EQUIVALENTS, end of period 60,506 22,613 106,711 81,291 110,393 182,369 106,553 374,653 344,553 292,323 223,103 50,005 66,356 53,344 60,506 78,112 67,143 51,640 22,613 38,077 24,575 48,804 106,711 45,986 14,879 18,255 28,093 39,253 11,049 25,998 57,194 59,874 89,097 133,475 129,170 94,497 48,680 40,794 53,354 25,700 34,800 21,400 91,600 35,700 41,900 33,700 84,700 29,400 27,000 9,100 47,970 8,750 8,750 8,750 8,750
50,005 66,356 53,344 60,506 78,112 67,143 51,640 22,613 38,077 24,575 48,804 106,711 60,936 29,829 33,205 43,043 54,203 25,999 40,948 72,145 74,825 104,048 148,426 144,121 94,497 48,680 40,794
FCF ANALYSIS
EBITDA 125,645 140,823 135,925 139,928 156,289 163,911 161,980 112,300 103,500 138,572 150,683 28,509 30,627 35,623 30,886 34,594 38,101 40,950 27,178 28,995 37,975 42,007 26,948 30,761 39,121 33,506 36,540 33,330 41,816 42,396 38,747 36,691 45,968 44,698 36,554 39,364 47,867 41,630 33,119 31,000 35,500 32,000 13,800 19,800 26,700 31,700 25,300 30,100 37,700 39,200 31,572 34,887 38,839 41,103 35,853
- cash interest expense (69,276) (51,497) (53,865) (61,700) (75,900) (73,300) (39,244) (40,000) (37,700) (38,776) (39,964) (20,371) (18,529) (17,759) (12,617) (12,880) (12,128) (7,631) (18,858) (8,604) (19,126) (8,096) (18,039) (11,800) (18,000) (14,700) (17,200) (16,000) (20,300) (15,000) (24,600) (18,300) (23,100) (19,200) (12,700) (11,786) (9,168) (9,083) (9,207) (8,900) (9,300) (10,800) (11,000) (9,800) (9,000) (9,400) (9,500) (9,500) (9,500) (9,300) (10,476) (10,421) (10,023) (9,911) (9,610)
- cash taxes (4,647) (28,482) (16,578) (24,200) (25,500) (24,900) (38,498) 135,000 (13,400) (27,776) (35,110) (1,903) (165) (1,182) (1,397) (67) (9,698) (5,769) (12,948) (52) (5,629) (7,606) (3,291) (100) (9,200) (1,700) (13,200) (300) (7,900) (9,600) (7,700) (5,500) (8,000) (5,000) (6,400) (9,198) (12,789) (9,185) (7,326) (6,400) (7,100) (2,500) 151,000 (1,200) (3,600) (4,300) (4,300) (5,600) (8,600) (7,700) (5,876) (7,905) (9,198) (9,946) (8,061)
- other OCF (ex working capital) (48,632) 96,371 49,199 79,094 (105,846) 154,116 (84,539) 282,862 (259,600) (53,068) 16,717 (2,353) 1,375 (75,042) 27,388 5,836 5,162 (38,798) 124,171 22,479 21,177 (107,349) 112,892 6,465 21,267 (26,734) 78,096 (3,212) (128,192) (29,905) 55,463 106,049 38,268 (32,793) 42,592 (82,273) (16,587) (6,337) 20,658 (17,480) 13,290 261,238 25,814 (68,600) (51,600) (114,700) (24,700) (22,800) (28,300) 900 (2,868) 30,032 (3,680) 2,036 (11,671)
= FFO 3,090 157,215 114,681 133,122 (50,957) 219,827 (301) 367,100 (52,300) 18,952 92,326 3,882 13,308 (58,360) 44,260 27,483 21,437 (11,248) 119,543 42,818 34,397 (81,044) 118,510 25,326 33,188 (9,628) 84,236 13,818 (114,576) (12,109) 61,910 118,940 53,136 (12,295) 60,046 (63,893) 9,323 17,025 37,244 900 39,200 284,600 42,400 (52,900) (32,500) (96,000) 129,100 (7,800) (8,700) 23,100 12,352 46,594 15,938 23,283 6,511
+ working capital changes 93,435 (89,209) (18,071) (150,985) 10,501 (91,246) 69,637 162,100 163,200 (32,576) (5,235) 16,813 24,936 72,879 (21,193) (11,083) (3,864) 47,156 (121,418) (13,580) (31,638) 117,111 (89,964) (42,640) (38,988) 43,992 (113,349) (13,925) 36,986 127,220 (139,780) (45,254) (21,137) 94,971 (119,826) 19,533 (13,052) 70,673 (7,517) (1,200) 67,200 67,900 28,200 95,000 19,500 126,600 (77,900) (33,900) 13,300 (30,000) 18,024 (25,405) (8,742) (16,426) 45,338
= Cash Flow From Operations (OCF) 96,525 68,006 96,610 (17,863) (40,456) 128,581 69,336 529,200 110,900 (13,624) 87,091 20,695 38,244 14,519 23,067 16,400 17,573 35,908 (1,875) 29,238 2,759 36,067 28,546 (17,314) (5,800) 34,364 (29,113) (107) (77,590) 115,111 (77,870) 73,686 31,999 82,676 (59,780) (44,360) (3,729) 87,698 29,727 (300) 106,400 352,500 70,600 42,100 (13,000) 30,600 51,200 (41,700) 4,600 (6,900) 30,376 21,189 7,196 6,857 51,850
- capex (non financed) (50,032) (57,477) (54,633) (45,881) (36,123) (30,307) (34,663) (37,883) (8,300) (25,000) (30,000) (10,326) (16,822) (11,603) (11,281) (8,593) (15,030) (14,479) (19,375) (15,223) (9,390) (8,821) (21,199) (6,291) (12,100) (17,802) (9,688) (9,198) (7,744) (9,656) (9,525) (5,534) (10,650) (6,630) (7,493) (10,230) (8,347) (6,812) (9,274) (8,500) (8,700) (15,649) (5,034) (2,200) (2,600) (1,300) (2,200) (3,400) (4,100) (8,400) (9,100) (8,750) (8,750) (8,750) (3,750)
- capex (financed) 0 0 0 (23,591) (41,940) (14,969) (22,471) (31,417) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (6,015) (10,115) (4,267) (3,194) (1,577) (16,659) (6,119) (17,585) (6,410) (705) (4,756) (3,098) (2,687) (7,598) (5,329) (6,857) (7,100) (7,200) (12,951) (4,166) 0 0 0 0 0 0 0 0 0 0 0 0
- dividends 0 0 0 0 0 (13,342) (27,663) (21,500) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (6,649) (6,693) (6,708) (6,519) (7,331) (7,105) (7,200) (7,200) (7,000) (100) 0 100 (100) 0 0 0 0 0 0 0 0 0
= FCF before acquisitions 46,493 10,529 41,977 (87,335) (118,519) 69,963 (15,461) 438,400 102,600 (38,624) 57,091 10,369 21,422 2,916 11,786 7,807 2,543 21,429 (21,250) 14,015 (6,631) 27,246 7,347 (29,620) (28,015) 12,295 (41,995) (10,882) (101,993) 99,336 (104,980) 61,742 20,644 64,641 (77,064) (63,985) (26,193) 68,226 6,491 (23,100) 83,300 316,900 61,300 39,900 (15,500) 29,200 49,000 (45,100) 500 (15,300) 21,276 12,439 (1,554) (1,893) 48,100
- acquisitions (50,150) (20,459) (79,866) (55,125) 0 0 (117,123) (41,900) (0) (0) (27,500) (2,224) (5,915) (32,852) (9,159) 0 (9,402) (5,186) (5,871) (250) (39,283) (32,845) (7,488) 0 (47,205) 0 (7,920) 0 (11,562) (13,059) 24,621 0 0 0 0 0 (34,081) (36,404) (46,638) (41,800) 0 (100) 0 (0) (0) (0) (0) 0 0 0 (0) (27,500) 0 0 0
= FCF after acquisitions (3,657) (9,930) (37,889) (142,460) (118,519) 69,963 (132,584) 396,500 102,600 (38,624) 29,591 8,145 15,507 (29,936) 2,627 7,807 (6,859) 16,243 (27,121) 13,765 (45,914) (5,599) (141) (29,620) (75,220) 12,295 (49,915) (10,882) (113,555) 86,277 (80,359) 61,742 20,644 64,641 (77,064) (63,985) (60,274) 31,822 (40,147) (64,900) 83,300 316,800 61,300 39,900 (15,500) 29,200 49,000 (45,100) 500 (15,300) 21,276 (15,061) (1,554) (1,893) 48,100
Adj OCF (ex floorplan changes and working capital changes) 83,902 83,270 77,035 96,788 88,824 104,042 120,231 67,700 81,900 93,920 74,016 16,991 19,724 24,722 22,465 22,618 23,270 22,607 14,775 12,211 19,211 27,274 18,339 0 12,551 20,885 32,959 30,393 0 16,372 23,990 22,213 26,249 0 20,245 24,850 24,802 34,145 0 30,326 36,667 32,029 21,209 0 21,800 27,000 23,800 (4,900) 0 12,100 31,700 19,000 19,100 0 30,100 23,500 34,300 6,020 0 16,493 19,758 20,958 16,807
- Internally Financed Capex (50,032) (57,477) (54,633) (45,881) (36,123) (30,307) (34,663) (35,000) (10,000) (25,000) (30,000) (10,326) (16,822) (11,603) (11,281) (8,593) (15,030) (14,479) (19,375) (15,223) (9,390) (8,821) (21,199) 0 (6,291) (12,100) (17,802) (9,688) 0 (9,198) (7,744) (9,656) (9,525) 0 (5,534) (10,650) (6,630) (7,493) 0 (10,230) (8,347) (6,812) (9,274) 0 (8,500) (8,700) (15,649) (5,034) 0 (2,200) (2,600) (1,300) (2,200) 0 (3,400) (4,100) (8,400) (9,100) 0 (8,750) (8,750) (8,750) (3,750)
- Dividends 0 0 0 0 0 (13,342) (27,663) (21,500) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (6,649) (6,693) 0 (6,708) (6,519) (7,331) (7,105) 0 (7,200) (7,200) (7,000) (100) 0 0 100 (100) 0 0 0 0 0 0 0 0 0 0 0
= FCF 33,870 25,793 22,402 50,907 52,701 60,393 57,905 11,200 71,900 68,920 44,016 6,665 2,902 13,119 11,184 14,025 8,240 8,128 (4,600) (3,012) 9,821 18,453 (2,860) 0 6,260 8,785 15,157 20,705 0 7,174 16,246 12,557 16,724 0 14,711 14,200 11,523 19,959 0 13,388 21,801 17,886 4,830 0 6,100 11,100 1,151 (10,034) 0 9,900 29,200 17,600 16,900 0 26,700 19,400 25,900 (3,080) 0 7,743 11,008 12,208 13,057
FCF USAGE (FCF calculated before dividends and acquisitions)
dividends 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (6,649) (6,693) (6,708) (6,519) (7,331) (7,105) (7,200) (7,200) (7,000) (100) 0 100 (100) 0 0 0 0 0 0 0 0 0
share repurchases 0 0 0 0 0 0 0 0 (5,364) (3,180) (5,254) 0 (1,266) 0 0 0 0 0 0 0 3,581 0 0 0 0 (36,075) (820) (13,432) (6,729) 0 0 0 0 0 0 0 0 0 0 0 0 (6,250) (6,250) (6,250) (6,250)
acquisitions 50,150 2,224 5,915 32,852 9,159 0 9,402 5,186 5,871 250 39,283 32,845 7,488 0 47,205 0 7,920 0 11,562 13,059 (24,621) 0 0 0 0 0 34,081 36,404 46,638 41,800 0 100 0 0 0 0 0 0 0 0 0 27,500 0 0 0
debt reduction (increase) (56,316) (9,332) (10,095) (27,659) (9,230) 55,702 (9,595) 33,626 (4,664) 12,886 (52,498) (28,738) (53,603) 4,117 (1,154) 65,747 1,484 18,087 3,168 5,227 (917) 652 587 15,298 3,110 (11,081) 12,884 461 (7,752) 400 (163,600) (25,800) 12,300 53,800 2,600 10,400 8,600 2,200 2,000 26,600 (21,786) 31,924 477 6,711 39,276
change in balance sheet cash 13,265 2,764 16,351 (13,012) 7,162 17,606 (10,969) (15,503) (29,027) 15,464 (13,502) 24,229 57,907 (60,725) (31,107) 3,376 9,838 11,160 (28,205) 14,950 31,197 2,680 29,223 44,378 (4,305) (34,673) (45,817) (7,886) 12,560 (27,700) 9,100 (13,400) 70,200 (55,900) 6,200 (8,200) 51,000 (55,300) (2,400) (17,900) 38,870 (39,220) 0 0 0
FY-Dec.09
Income Statement
Revenue ###
Gross Margin (%) ###
Gross Proift
Implied SG&A/GP
EBIT ###
Operating Profit ###
EBITDA ###
Pre-tax Profit ###
Net Income ###
Per Share Data
EPS ###
EPS - Fully Reported ###
EBITDA per Share ###
Dividend per Share ###
Cash Flow
Capital Expenditure ###
EBITDA-Capex
Per Share Data
Cash Flow per Share ###
Balance Sheet
Net Asset Value NA
Net Debt NA
Per Share Data
Book Value per Share ###
Valuation
ROA (%) NA
ROE (%) ###
Enterprise Value ###
2005 2006 2007 2008 2009E 2010E
SG&A BUILDUP
Personnel 297,124 313,160 300,300 277,600 238,364 251,617
Sales Compensation 92,978 100,322 93,600 74,000 55,682 68,679
Share-based Compensation 0 4,955 5,900 1,900 3,497 5,093
Retirements Benefit Expense 0 0
Outside Services 53,700 56,805 60,300 57,700 51,600 50,300
Advertising 49,356 48,969 47,600 41,200 25,538 29,118
Rent 47,116 53,492 55,100 48,600 45,290 46,845
Utilities 17,277 18,045 17,600 17,800 16,617 16,638
Insurance 13,341 13,978 13,800 13,500 13,776 12,019
Other 63,569 63,171 62,000 60,500 46,529 51,032
Acquisitions 23,800
SG&A 634,461 672,897 656,200 616,600 496,893 531,341
SG&A $ PER UNIT
Personnel $1,837 $1,892 $1,833 $2,155 $2,302 $2,175
Sales Compensation $575 $606 $571 $574 $538 $594
Share-based Compensation $0 $30 $36 $15 $34 $44
Retirements Benefit Expense $0 $0 $0 $0 $0 $0
Outside Services $332 $343 $368 $448 $498 $435
Advertising $305 $296 $291 $320 $247 $252
Rent $291 $323 $336 $377 $437 $405
Utilities $107 $109 $107 $138 $160 $144
Insurance $82 $84 $84 $105 $133 $104
Other $393 $382 $378 $470 $449 $441
Acquisitions
SG&A $3,923 $4,066 $4,005 $4,786 $4,799 $4,594
Adj SG&A as % of Revenue 11.7% 11.6% 11.9% 13.3% 13.6% 12.9%
Adj SG&A as % of Adj Gross Profit 77.8% 76.1% 76.7% 81.4% 80.9% 77.9%
Reported SG&A as % of Gross Profit 77.9% 76.7% 76.9% 81.4% 80.9% 77.9%
% OF REVENUE
Personnel 5.5% 5.4% 5.5% 6.0% 6.5% 6.1%
Sales Compensation 1.7% 1.7% 1.7% 1.6% 1.5% 1.7%
Share-based Compensation 0.0% 0.1% 0.1% 0.0% 0.1% 0.1%
Retirements Benefit Expense 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Outside Services 1.0% 1.0% 1.1% 1.2% 1.4% 1.2%
Advertising 0.9% 0.9% 0.9% 0.9% 0.7% 0.7%
Rent 0.9% 0.9% 1.0% 1.1% 1.2% 1.1%
Utilities 0.3% 0.3% 0.3% 0.4% 0.5% 0.4%
Insurance 0.2% 0.2% 0.3% 0.3% 0.4% 0.3%
Other 1.2% 1.1% 1.1% 1.3% 1.3% 1.2%
SG&A 11.7% 11.7% 12.0% 12.8% 13.6% 12.9%
% OF REPORTED GROSS PROFIT
Personnel 36.5% 35.7% 35.2% 36.7% 38.8% 36.9%
Sales Compensation 11.4% 11.4% 11.0% 9.8% 9.1% 10.1%
Share-based Compensation 0.0% 0.6% 0.7% 0.3% 0.6% 0.7%
Retirements Benefit Expense 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Outside Services 6.6% 6.5% 7.1% 7.6% 8.4% 7.4%
Advertising 6.1% 5.6% 5.6% 5.4% 4.2% 4.3%
Rent 5.8% 6.1% 6.5% 6.4% 7.4% 6.9%
Utilities 2.1% 2.1% 2.1% 2.4% 2.7% 2.4%
Insurance 1.6% 1.6% 1.6% 1.8% 2.2% 1.8%
Other 7.8% 7.2% 7.3% 8.0% 7.6% 7.5%
SG&A 77.9% 76.7% 76.9% 81.4% 80.9% 77.9%
YOY % GROWTH
Personnel 5.4% (4.1%) (7.6%) (14.1%) 5.6%
Sales Compensation 7.9% (6.7%) (20.9%) (24.8%) 23.3%
Share-based Compensation NA 19.1% (67.8%) 84.1% 45.6%
Retirements Benefit Expense NA NA NA NA NA
Outside Services 5.8% 6.2% (4.3%) (10.6%) (2.5%)
Advertising (0.8%) (2.8%) (13.4%) (38.0%) 14.0%
Rent 13.5% 3.0% (11.8%) (6.8%) 3.4%
Utilities 4.4% (2.5%) 1.1% (6.6%) 0.1%
Insurance 4.8% (1.3%) (2.2%) 2.0% (12.8%)
Other (0.6%) (1.9%) (2.4%) (23.1%) 9.7%
SG&A 6.1% (2.5%) (6.0%) (19.4%) 6.9%
ASSUMPTIONS
Personnel
Sales Compensation
Share-based Compensation
Outside Services
Advertising
Rent
Utilities
Insurance
Other
SG&A
Large dealer's biggest cost is compensation, which they can reduce if sales drop, and advertising which is under mgmt's control.
Dealers have a variable cost structure which is a plus in the event sales decline precipitiously. ~ 60%-65% of a dealer's cost structure is variable (e.g. sales commissions, personnel
relatively easy for a dealer to shrink costs during challenging economic periods. Dealers' focus on increasing their parts and service businesses to improve fixed-cost leverage. On a
of a dealer's fixed SG&A costs (rent, D&A, mgmt personnel costs, etc.). Ideally, dealers would like parts and service operating income to cover 100% of fixed costs, implying that no
<-- but ultimately if don’t sell less new vehicles then the base of parts and service revenue will decrease and the fixed cost portion of the lesser utliized service departme
Public dealers have begun converting their dealerships to a single DMS in order to consolidate back office tasks and enhance synergies between departments. A single DMS platform
by allowing it to streamline customer information and efficently process vehicle diagnostics and inspections, which can be leveraged to increase profitable parts and service revenue.
Dealers have focused on enhancing the value of their ad spending to get the most bang for their buck --> shifting to the internet ($200 per vehicle sold vs $600 for traditional media (t
benefit of reaching a better prepared customer who has done much of the research before stepping inot a dealership.
Public dealers efforts to reduce SG&A have been partially offset by rising sticky costs that are harder to control and manage such as rising rent expense and higher utility costs. Risin
cases start shifting form the use of sale leasebacks and operating leases toward capitalized leases and owning the real estate.
Variable Costs - incenitve based compensation, vehicle carrying costs, and other variable costs.
Salespeople, sales managers, service managers, parts managers, service advisors, service technicians and the majority of other non-clerical dealership personnel are paid a commi
is tied to profits of the dealership. In addition, the bonus portion of our salaried employee's compensation is tied to our net income.
Semi-variable costs - base salaries, outside services, travel and entertainment expenses, advertising and loaner vehicle amortization.
We believe we can manage these types of costs by capitalizing on best practices among our dealerships, standardization of compensation plans, controlled oversight and accountab
Fixed Costs - include rent, utililities, depreciation
ABG IS THE DEALER WITH THE MOST LEVERAGE TO A REBOUNDING SAAR AS THEY MOVE TO A MORE CENTRALIZE
1Q08 call
Q: cut pretty far - anymore can do with fixed cost structure? How much further can you go with cost savings?
A: (Oglesby) as continue to manage biz to market there will always be more expense takeouts
the greatest expense opportunities are the greatest cost in dealerships is inventory, personnel and advertising.
from an expense standpoint you really have two ways to go with it which is a direct expense reductin or an increase in productivit
4Q09 call
For FY09 our SG&A eas $87 mm lower than 2008. The majority of the cost savings to date have been achieved by adjusting our
organziational structure in place we are well psotiioned to deploy best-in-class technology and processes throughout our dealers
In terms of our infrastrcture investments, I would like to provide the following updates: we have completed the consolidation of ou
employee on-boarding and benefits administration. We are ~ 2/3 complete with the converison of our stores to a common DMS.
Q: ML Murply pg 11 - On SG&A savings, obviously youre talking about $100 mm, your capture rate would be reasonably high on
demand recovers could not appraoch the low 70% range, sort of best in class where autonation has been historically? Or are the
A: It’s a great question. I think we need to get on an apples-to-apples basis to start when you set these targets. We still rent or lea
much, much closer than it would appear on the surface. How much further can we go over time if SAAR gets back to normal? Ma
after. I cant tell you want saar we'll se that at. But I think with the combination of leverage, infrastructure buildout and further prod
We can position ourselves for the downside and take advantage of the upsie and that - we would rather - we can build up eaiser
necessary.
Q: You have a lot of balls in the air wwith respect to your centralization initiatives. Can y ou help us understand the prioriities ther
A: 18 mos ago this business was really run as six indpendent regional operations. We have elimianted those regional offices and
We have at this point collapsed all of our payroll operations here into the loop. Getting the commond DMS done this year is #1 on
using automated processes now on our floor plan recs, inventory recs. We are making some technology investments where we're
through an electronic process. We are working to get a standard CRM system in across the country. We're doing a lot fo work on
surveys to understand how we should continue to build out our technology infrastructure. We have a new corporate website. We
We are excited because these are opportunities that we havent been able to take advantage of in the past because of the structu
because this is very much a people industry, that we keep our business operators and our general managers so that they are wh
organizations, with their employees so the inspiration happens. This business still happens one-in-one, with the customer and wi
that as well, or whether they come in as foot traffic. So that general manager is key and that is a process that althrough we can b
centralized because it is still a personal business in each one of our oeprations. So that’s why we belevie we have the best balan
markets with all of the support from the technology and productivity gains wwe can get to them.
Structural cost reducitons have enabled the publicly traded retailers to remain profitable despite the 35% redcuction in new unit s
expected to remain well below peak levels even in a demand recovery. The retailers we've spoken with believe that advertsing sp
more cost effective. Additionally, the massive personnel restructurings that have occurred at dealerhsips in 2009 and the expecte
dealership mgmt personnel. Non-commission personnel costs represent nearly 50% of the average retailers SG&A and we believ
1Q10
incraesed sales coupled with out leaner cost strucutre allowed us to more than triple our income from continuing operations. As e
However, our productivity measures are helping us flow more of the increases in gross profit to income. Our fixed expenses wer
Q: what kind of SG&A/GP do you think is an acheiveable level or target rate, given your SAAR assumptions for 2010 and 2011?
somewhat dependnet on where SAAR goes, but we feel we have made a lot of progress but we still have a lot of work to do.
Q: could you talk a little bit about sort of the operating margin contirbution from the P&S, the flow through to SG&A and the opera
A: in the new and used side of the business you get gross profit but htin if you come down to the P&L we've got to take out our co
P&S business, much of the people cost is actually taken out before you get to gross. So parts and service gross, just broadly spe
business.
2Q10
Our improved perofrmance was primarily a result of a 13% incraese in gross proft and a 400bp decrease in SG&A/GP. This quar
gross profit increased 13% compare to the prior period, operaitng income jumped 46%. We were able to flow through 55% of the
expensse it is improtant to consider rent expense. Renting vs. buying is a financing decision. Either you pay interest expense on
potentially distort productivity analysis. If you adjust our SG&A for rent expense, SG&A?GP was 70.% in 2Q10.
As a result of the cmprehnesive IT strategy reveiew that we announced in 1Q10 we have decided to use ADP as our common DM
the end of summer next year. Don’t anticipate any material charges or expenses. Over the LT we expect continued productivity im
organization is extremely excited and energized as we prepare to enchance our IT infrastrucutre. We're looking forward to a quic
Emphasize that this is not simply a DMS conversion. Our technology decisions will proivde and invaluable suite of tools, that will
maximizing the lifetime value of our customers. Other benefits for our stores include ease of use, as well as enhanced reporting a
We believe we are making progress in formulating the ideal, large automotive retailer busienss model. In order to differentiate us
local area maerkts. We run the busienss as a partnership with the geenral managers and treat them as entrepreneurs and leader
not limited to simply pulling out costs. These benefits also include providing tools and frameworks for sharing best practices.
Q: did a great job on the cost cutting and really streamlining the business in a really tough time. And when you adjust for rent SG
DMS in and that coming over essentially the next 12 months. Is there a lot more cost-cutting and efficeinceis and operating levera
A: We believe there is. We are still behind the curve with respect to where some of our competitors are with systmes and process
to see those gains, quarter on quarter.
Right now I feel like we've chopped a lot of wood. We have made a lot of progress. We have made a lot of progresss very quickly
will take time for these things to take hold.
But as now build this new IT infrastructure, that will bring the next step function, if you would, of improvement in margins. But we'
that are going to be happening across the stores. Its much more than the DMS. This porject includes DMS, CRM, a lot of process
technolgoies and processes. To a large extent its being led by our people at the stores. And we're going to hit the first four stores
we think it will bring signficant enahcnements down the roade.
3Q10
Q: how much incremental opportunity is there in SG&A/GP? Is it a fucniton of rising in grosses to narrow further from these levels
A: there is a little more that we think we can do, but most of the resturcutring benefits are now relfected in our cost structure. Som
got to get some of these fraction made and implemented and they'll bring the next wave . Productivity improvements really come
step funciton to play out for.
Q: going forward is there anything in terms of a step change in SG&A cost we shoud be looking for. Bsically getting at like where
A: I don’t think you should expect any step function changes, at least for the foresseable future. These technology investments w
you see today is a cost structure that reflects the marketplace in this 11.5 SAAR. Now as we sell more cars I think just natural lev
we can get to that next step funciton of productivity.
Advertising/Vehicle gross 12%-13% in the old days it used to be 15%.
Q: 55% of gross profit increase was absorbed by SG&A, any rule of thumbe we hsould be looking for as the marekt recovers?
2009 GP growth 5%
Gross Profit $613,000 $643,650 $30,650
SG&A $494,700 $504,815 33%
SG&A/GP 80.7% 78.4%
4Q09 cal:l we think we could add another 5% of gross profit to this business and maybe have two thirds of t
then going to have to staff up, hire more people, make more investments. Probably less than 50% of that would
start adding service bays, making even bigger investments. You would then see further deterioration of what we
2005 2006
2011E 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
268,082 76,053 73,372 76,958 70,741 77,561 77,778 78,969 78,852

93,410 21,584 24,091 25,567 21,736 23,131 26,388 26,520 24,283
4,399 0 0 0 0 1,369 927 962 1,697
0 0 0 0 0 0 0
50,300 13,601 13,831 13,867 12,401 13,157 14,329 14,541 14,778
31,224 12,491 13,780 13,827 9,258 11,562 12,570 12,794 12,043
48,250 11,951 11,814 12,064 11,287 12,994 13,234 13,675 13,589
17,051 4,487 4,014 4,437 4,339 4,863 4,310 4,628 4,244
12,139 3,530 3,675 3,703 2,433 3,864 3,766 3,684 2,664
51,032 14,729 15,608 17,972 15,260 14,790 16,156 16,795 15,430
575,887 158,426 160,185 168,395 147,455 163,291 169,458 172,568 167,580
$2,127 $2,001 $1,711 $1,690 $2,002 $1,971 $1,769 $1,766 $2,105

$741 $568 $562 $562 $615 $588 $600 $593 $648
$35 $0 $0 $0 $0 $35 $21 $22 $45
$0 $0 $0 $0 $0 $0 $0 $0 $0
$399 $358 $323 $305 $351 $334 $326 $325 $395
$248 $329 $321 $304 $262 $294 $286 $286 $321
$383 $315 $276 $265 $319 $330 $301 $306 $363
$135 $118 $94 $97 $123 $124 $98 $103 $113
$96 $93 $86 $81 $69 $98 $86 $82 $71
$405 $388 $364 $395 $432 $376 $367 $376 $412
$4,569 $4,169 $3,736 $3,699 $4,173 $4,151 $3,853 $3,858 $4,474

12.9% 12.4% 11.3% 11.6% 11.2% 12.0% 11.3% 11.5% 12.1%
77.7% NA 76.5% 77.2% 96.9% 78.2% 74.2% 75.2% 77.9%
77.7%
6.0% 5.9% 5.2% 5.3% 5.4% 5.7% 5.2% 5.3% 5.7%

2.1% 1.7% 1.7% 1.8% 1.6% 1.7% 1.8% 1.8% 1.8%
0.1% 0.0% 0.0% 0.0% 0.0% 0.1% 0.1% 0.1% 0.1%
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
1.1% 1.1% 1.0% 1.0% 0.9% 1.0% 1.0% 1.0% 1.1%
0.7% 1.0% 1.0% 0.9% 0.7% 0.8% 0.8% 0.9% 0.9%
1.1% 0.9% 0.8% 0.8% 0.9% 1.0% 0.9% 0.9% 1.0%
0.4% 0.4% 0.3% 0.3% 0.3% 0.4% 0.3% 0.3% 0.3%
0.3% 0.3% 0.3% 0.3% 0.2% 0.3% 0.3% 0.2% 0.2%
1.1% 1.2% 1.1% 1.2% 1.2% 1.1% 1.1% 1.1% 1.1%
12.9% 12.4% 11.3% 11.6% 11.2% 12.0% 11.3% 11.5% 12.1%
36.2% 33.9% 34.3% 34.1% 36.7%

12.6% 10.4% 10.2% 11.6% 12.3%
0.6% 0.0% 0.6% 0.4% 0.4%
0.0% 0.0% 0.0% 0.0% 0.0%
6.8% 5.9% 5.8% 6.3% 6.8%
4.2% 4.4% 5.1% 5.5% 5.9%
6.5% 5.4% 5.7% 5.8% 6.4%
2.3% 2.1% 2.1% 1.9% 2.2%
1.6% 1.2% 1.7% 1.6% 1.7%
6.9% 7.3% 6.5% 7.1% 7.8%
77.7% 70.6% 72.1% 74.2% 80.2%
6.5% 2.0% 6.0% 2.6% 11.5%

36.0% 7.2% 9.5% 3.7% 11.7%
(13.6%) NA NA NA NA
NA NA NA NA NA
0.0% (3.3%) 3.6% 4.9% 19.2%
7.2% (7.4%) (8.8%) (7.5%) 30.1%
3.0% 8.7% 12.0% 13.4% 20.4%
2.5% 8.4% 7.4% 4.3% (2.2%)
1.0% 9.5% 2.5% (0.5%) 9.5%
0.0% 0.4% 3.5% (6.5%) 1.1%
8.4% 3.1% 5.8% 2.5% 13.6%
e is variable (e.g. sales commissions, personnel, advertising, and inventory finance costs). This makes it
businesses to improve fixed-cost leverage. On average, parts and service gross profit can cover 70%-90%
me to cover 100% of fixed costs, implying that no vehicles have to be sold for the business to break even.
portion of the lesser utliized service departments will weigh on results.
gies between departments. A single DMS platform is especially helpful for a dealership's service department
to increase profitable parts and service revenue.
0 per vehicle sold vs $600 for traditional media (tv and paper). Beyond cost cutting, web advertising has the
rising rent expense and higher utility costs. Rising rent expense has led public dealers to evaluate and in some
n-clerical dealership personnel are paid a commission. The majority of general manager compensation
sation plans, controlled oversight and accountability, and centralized processing systems.
AR AS THEY MOVE TO A MORE CENTRALIZED STRUCTURE
an you go with cost savings?
ory, personnel and advertising.

ect expense reductin or an increase in productivity. We will look for both of those areas.
ngs to date have been achieved by adjusting our busienss to the current retail enviroment and the restructuring of our organization. Now with our leaner
echnology and processes throughout our dealership network to help drive further productivity improvements.
ates: we have completed the consolidation of our payroll processing and our expanding the scope of this project to include other HR functions such as recruiting, new
the converison of our stores to a common DMS. We are over 50% complete with the conversion of all of our stores to a common chart of accounts.
m, your capture rate would be reasonably high on that going forward. Obviously that’s helpful on an absolute basis. But is there any reason that SG&A a few years out as
here autonation has been historically? Or are there structural issues that would prevent you from getting there?
art when you set these targets. We still rent or lease a lot of our stores. If y ou adjust SG&A for rent and then compare us to Autonation, you are going to see that we are
we go over time if SAAR gets back to normal? Maybe I'll make a bold statement. I think there are hundreds of basis points of improvement left and that is what we are
everage, infrastructure buildout and further productivity improvements, we still have a lot of opporutnity on the table
d that - we would rather - we can build up eaiser than we can tear down again. We feel like we've really put ourselves in a position that we can move up the scale quickly as
. Can y ou help us understand the prioriities there in 2010?

s. We have elimianted those regional offices and are now consolidating the work that was done there into our HQ here just outside of Atlanta. That work is ~ 85% done.
etting the commond DMS done this year is #1 on the priority list. We are also working to automate a lot of the reconciliation processes, whether the bank recs. We're
making some technology investments where we're trying to move to a more paperless environment. For example, all of our capex is approved electronically and goes
across the country. We're doing a lot fo work on the Web side and expanding our web initiatives. We are stepping up with our web teaam. We are startgin to do customer
tructure. We have a new corporate website. We are working on store level websites.
e advantage of in the past because of the structure we have. So with all of these changes, the key for us as we understand how imporatnat people are in this industry
s and our general managers so that they are what we say decentralize because what we are looking for them to do is be the great leaders in their communitites, in their
ll happens one-in-one, with the customer and with our employee whether they enter the portal through the interent which is continuing to grow, and we are excited about
ey and that is a process that althrough we can build a sturcutre aroudn them to help them be even more efficent and create more producitvity gains, but it cannot be
So that’s why we belevie we have the best balance between centralization and allowing our busienss operators to have the autonomy they need to operate in their local
ofitable despite the 35% redcuction in new unit sales vs 07 levels. Cost reductions have mainly come from advertising and personnel reductions, each of which are
lers we've spoken with believe that advertsing spending will continue to shift twoards non-traditional media and internet lead generation tools, which are considered
occurred at dealerhsips in 2009 and the expected 20% reduciton in the dealer body by 2010 is expected to lead to a favorable supply/demand dynamic in terms of
50% of the average retailers SG&A and we believe there will be a structural reduciton in those costs vs levels seen in the mid 00's.
iple our income from continuing operations. As expected, some of the variable components of our SG&A have begun to increase with the recovery in sales volumes.
gross profit to income. Our fixed expenses were lower during the period due ot our restrucuring efforts
en your SAAR assumptions for 2010 and 2011? A: we thnk that over the course of the next couple of years we could get another 200bps out of SG&A. Obviously its
progress but we still have a lot of work to do.
he P&S, the flow through to SG&A and the operating profit for P&S. And how does it shake out in comparison to new and used vehicles?
ome down to the P&L we've got to take out our compensation expense. And in that part of the business, that compensation expense falls into other - into SG&A. In the
oss. So parts and service gross, just broadly speaking, I would say flows through in a much bigger way than you do - you see on the what we call the variable side of the
ft and a 400bp decrease in SG&A/GP. This quarter, in particular, demonstrates our ability to flow through incremental changes in gross profit to operating income. While
d 46%. We were able to flow through 55% of the increse in gross profit to operating income as a result of our leaner cost structure and discipline. While anlayzing SG&A
ng decision. Either you pay interest expense on a mortgage or you pay rent with a lease. The expense however fits in different parts of the income statement and can
SG&A?GP was 70.% in 2Q10.
we have decided to use ADP as our common DMS provider. We anticpate the first group of stores going live in October and compelting the roll out, company wide, by
. Over the LT we expect continued productivity improvements from these investments as we install a fully integrated suite of SOTA tools in all of our stores. Our entrie
IT infrastrucutre. We're looking forward to a quick, minimally disruptive implementation.
will proivde and invaluable suite of tools, that will allow our sales and service teams to dramatically improve the customer experience, by expediting the sales process and
ude ease of use, as well as enhanced reporting and improved process efficiencies.
tailer busienss model. In order to differentiate us, it is critical to install a winning culture that leverages our scale while retaining the ability to respond quickly to changes in
gers and treat them as entrepreneurs and leaders, to run ABG's dealerships, while providing them with the benefits of scale. It is important to note that these benefits are
s and frameworks for sharing best practices.
ally tough time. And when you adjust for rent SG&A/gp at 70.5% is really impressinve. But it does seem like there's some more wood to chop and your putting a commno
cost-cutting and efficeinceis and operating leverage that you think you can gain over time, even if we didn’t have a real increase in the sales level at this point?
of our competitors are with systmes and processes. And we think as we get caught up that will definitely bring additional productivity gains. I don’t think you should expect
ss. We have made a lot of progresss very quickly. I think youi see it in the results. But now we're going to go thorugh a period of aobut a year, a little bit more, because it
f you would, of improvement in margins. But we'd ask that you give us a little bit of time as we work our way there. We're very excited about it. There are quite a few enhancements
This porject includes DMS, CRM, a lot of processes within the stores themselves. We've got many, many people across our organization wokring on the design of these
stores. And we're going to hit the first four stores here in Octobe. We are targeting to provide them the most fully ingrated set of tools that exist in any store anywhere. And
ing in grosses to narrow further from these levels?

efits are now relfected in our cost structure. Some things will flow thorugh like the rent impovement we just talked about. I think we are at the point in time where we've
xt wave . Productivity improvements really come more like step functions that they do smooth curves and we're now making the investments in order to get the next
houd be looking for. Bsically getting at like where's your advertising expense maybe compared to last year and do you expect any significant increases in that going forward.
sseable future. These technology investments will in time allow us to geenrate productivity improvements on a number of fronts but broadly speaking the cost strucutre
Now as we sell more cars I think just natural leverage will h elp drive dour our SG&A/GP %. But beyond that wever got to make these productivity improvements before
BESIDE LESS AGGRESSIVE FINANICAL POLICY LIKE SAH FOR RELATIVE INFLECITON ON COST
hsould be looking for as the marekt recovers? <-- ABG rode 1st wave of relative improvements as moved from decentralized structure
meanwhile at same time SAH suffered by relative comparison as it was making LT investmetns
for its future. Now this relative performance may reverse as SAH starts to harvest gains
while ABG makes investments for next stair step improvement.
2010e gp growt 11.2%
2011e gp growt 8.8%
21.0%
GP growth 10% GP growth 20% GP growth 40%

$674,300 $61,300 $735,600 $122,600 $858,200 $245,200
$528,415 55% $565,195 58% $666,340 70%
78.4% Triangulate 76.8% 77.6%
Model 77.7%
to this business and maybe have two thirds of that flow through to the bottom line. As you start to get beyond that, if you add another 10 or 20% of gross profit, we're
estments. Probably less than 50% of that would flow through to the bottom line. And obviously if you start to increase growth at much higher levels beyond that, we'd probably have to
would then see further deterioration of what we could get to the bottom line
(76,722)
2007 2008 2009
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
80,926 78,822 78,304 62,248 73,900 71,600 68,800 63,300 59,600

25,196 26,521 25,094 16,789 20,200 21,200 19,000 13,600 13,200
1,895 1,619 1,192 1,194 1,300 (600) (400) 1,600 1,500
2,950 (2,950) 0 0 0
15,196 14,421 16,985 13,698 14,100 15,000 14,300 14,300 10,100
12,545 12,972 13,437 8,646 10,200 12,100 11,200 7,700 6,800
13,941 14,377 14,648 12,134 13,900 12,900 10,100 11,700 10,600
4,775 4,424 4,842 3,559 4,700 4,100 4,600 4,400 4,600
3,563 3,149 4,602 2,486 2,800 4,100 3,400 3,200 4,000
15,399 17,320 16,963 12,318 15,000 15,800 16,300 13,400 12,100
0 0 23,800 1,200
176,386 173,625 176,067 130,122 156,100 156,200 147,300 133,200 123,700
$1,983 $1,834 $1,869 $2,024 $2,161 $1,949 $2,135 $2,898 $2,579

$617 $617 $599 $546 $591 $577 $590 $623 $571
$46 $38 $28 $39 $38 ($16) ($12) $73 $65
$72 $0 $0 ($96) $0 $0 $0 $0 $0
$372 $336 $406 $445 $412 $408 $444 $655 $437
$307 $302 $321 $281 $298 $329 $348 $353 $294
$342 $334 $350 $394 $406 $351 $313 $536 $459
$117 $103 $116 $116 $137 $112 $143 $201 $199
$87 $73 $110 $81 $82 $112 $106 $147 $173
$377 $403 $405 $400 $439 $430 $506 $613 $524
$0 $0 $0 $1,090 $52
$4,323 $4,040 $4,203 $4,230 $4,564 $4,252 $4,572 $7,188 $5,352
12.5% 11.5% 11.8% 9.7% 13.0% 12.6% 13.1% 14.5% 13.9%
77.4% 74.6% 77.1% 71.8% 80.1% 78.5% 80.6% 73.7% 83.5%
78.7% 74.7% 77.1% 71.4% 80.1% 78.5% 80.6% 73.7% 83.5%
5.7% 5.2% 5.3% 4.6% 6.1% 5.8% 6.1% 6.9% 7.1%

1.8% 1.8% 1.7% 1.2% 1.7% 1.7% 1.7% 1.5% 0.9%
0.1% 0.1% 0.1% 0.1% 0.1% (0.0%) (0.0%) 0.2% 0.2%
0.2% 0.0% 0.0% (0.2%) 0.0% 0.0% 0.0% 0.0% 0.0%
1.1% 1.0% 1.1% 1.0% 1.2% 1.2% 1.3% 1.6% 1.2%
0.9% 0.9% 0.9% 0.6% 0.8% 1.0% 1.0% 0.8% 0.8%
1.0% 1.0% 1.0% 0.9% 1.2% 1.0% 0.9% 1.3% 1.3%
0.3% 0.3% 0.3% 0.3% 0.4% 0.3% 0.4% 0.5% 0.5%
0.3% 0.2% 0.3% 0.2% 0.2% 0.3% 0.3% 0.3% 0.5%
1.1% 1.1% 1.1% 0.9% 1.2% 1.3% 1.4% 1.5% 1.4%
12.5% 11.5% 11.8% 9.7% 13.0% 12.6% 13.1% 14.5% 13.9%
36.1% 33.9% 34.3% 34.1% 37.9% 36.0% 37.7% 35.0% 40.2%

11.2% 11.4% 11.0% 9.2% 10.4% 10.7% 10.4% 7.5% 8.9%
0.8% 0.7% 0.5% 0.7% 0.7% (0.3%) (0.2%) 0.9% 1.0%
1.3% 0.0% 0.0% (1.6%) 0.0% 0.0% 0.0% 0.0% 0.0%
6.8% 6.2% 7.4% 7.5% 7.2% 7.5% 7.8% 7.9% 6.8%
5.6% 5.6% 5.9% 4.7% 5.2% 6.1% 6.1% 4.3% 4.6%
6.2% 6.2% 6.4% 6.7% 7.1% 6.5% 5.5% 6.5% 7.2%
2.1% 1.9% 2.1% 2.0% 2.4% 2.1% 2.5% 2.4% 3.1%
1.6% 1.4% 2.0% 1.4% 1.4% 2.1% 1.9% 1.8% 2.7%
6.9% 7.5% 7.4% 6.8% 7.7% 7.9% 8.9% 7.4% 8.2%
78.7% 74.7% 77.1% 71.4% 80.1% 78.5% 80.6% 73.7% 83.5%
4.3% 1.3% (0.8%) (21.1%) (8.7%) (9.2%) (12.1%) 1.7% (19.4%)

8.9% 0.5% (5.4%) (30.9%) (19.8%) (20.1%) (24.3%) (19.0%) (34.7%)
38.4% 74.6% 23.9% (29.6%) (31.4%) (137.1%) (133.6%) 34.0% 15.4%
NA NA NA NA (100.0%) NA NA (100.0%) NA
15.5% 0.6% 16.8% (7.3%) (7.2%) 4.0% (15.8%) 4.4% (28.4%)
8.5% 3.2% 5.0% (28.2%) (18.7%) (6.7%) (16.6%) (10.9%) (33.3%)
7.3% 8.6% 7.1% (10.7%) (0.3%) (10.3%) (31.0%) (3.6%) (23.7%)
(1.8%) 2.6% 4.6% (16.1%) (1.6%) (7.3%) (5.0%) 23.6% (2.1%)
(7.8%) (16.4%) 24.9% (6.7%) (21.4%) 30.2% (26.1%) 28.7% 42.9%
4.1% 7.2% 1.0% (20.2%) (2.6%) (8.8%) (3.9%) 8.8% (19.3%)
8.0% 2.5% 2.0% (22.4%) (11.5%) (10.0%) (16.3%) 2.4% (20.8%)
not only does the company’s smaller size give it a relative advantage over its
peers when it comes to implementing such initiatives, but a previously decentralize
structure provides further potential to lean the organization
ANTICIPATED ANNUALIZED SG&A SAVINGS (

Corporate Restructuring
Regional Consolidation
Store level Productivity Initiatives
Total Annualized Savings
Expenses Related to Restructuring
Net Savings
mgmt is focused on maintaining headroom on its
Having only begun to cut costs late in 2008, there

hanging fruit" on the cost side has been picked at
as recruiting, new We believe PAG conitnues to have a higher fixed
costs are higher than competitors. The company's
take labor out of the dealerships without hamperin
A a few years out as
g to see that we are

at is what we are
up the scale quickly as
as total SG&A less variable compensation and se
work is ~ 85% done.

bank recs. We're
onically and goes
tartgin to do customer
re in this industry
ommunitites, in their
we are excited about
operate in their local Fixed SG&A/GP = ~ 63%
n sales volumes.
into SG&A. In the

e variable side of the
ating income. While

hile anlayzing SG&A
tatement and can
company wide, by
stores. Our entrie
he sales process and
quickly to changes in
at these benefits are
ur putting a commno
ink you should expect
bit more, because it
are quite a few enhancements

the design of these
y store anywhere. And
time where we've
es in that going forward.

g the cost strucutre
mprovements before
INFLECITON ON COST
<-- more cost buckets flow back with higher GP
but also need to account for DMS gains etc.
% of gross profit, we're

eyond that, we'd probably have to
2010 2011
2Q 3Q 4QE 1QE 2QE 3QE 4QE 1QE 2QE
62,600 60,500 55,664 62,000 64,700 64,800 60,117 65,100 69,876

14,700 16,100 11,682 15,200 17,300 18,300 17,879 20,845 23,451
(500) 700 1,797 1,900 1,200 1,000 993 1,042 1,042
0 0 0 0 0 0 0 0 0
13,500 14,000 14,000 11,400 12,900 12,000 14,000 11,400 12,900
7,600 6,600 4,538 6,800 8,200 8,900 5,218 7,344 8,774
10,300 11,300 13,090 11,300 10,500 11,300 13,745 11,639 10,815
3,800 4,200 4,017 4,300 3,700 4,500 4,138 4,429 3,811
2,400 3,800 3,576 2,600 3,200 3,000 3,219 2,626 3,232
12,200 12,200 10,029 13,600 12,900 13,700 10,832 13,600 12,900
100 0
126,700 129,400 118,393 129,100 134,600 137,500 130,141 138,025 146,801
$2,326 $2,061 $2,305 $2,305 $2,170 $2,071 $2,173 $2,247 $2,144

$546 $548 $484 $565 $580 $585 $646 $719 $720
($19) $24 $74 $71 $40 $32 $36 $36 $32
$0 $0 $0 $0 $0 $0 $0 $0 $0
$502 $477 $580 $424 $433 $384 $506 $393 $396
$282 $225 $188 $253 $275 $284 $189 $253 $269
$383 $385 $542 $420 $352 $361 $497 $402 $332
$141 $143 $166 $160 $124 $144 $150 $153 $117
$89 $129 $148 $97 $107 $96 $116 $91 $99
$453 $416 $415 $506 $433 $438 $392 $469 $396
$4 $0 $0 $0 $0 $0 $0 $0 $0
$4,707 $4,407 $4,903 $4,800 $4,515 $4,394 $4,704 $4,764 $4,505
12.9% 13.0% 13.2% 13.3% 12.8% 12.7% 13.1% 13.2% 13.0%
81.3% 79.5% 80.1% 79.3% 76.5% 77.3% 78.8% 78.2% 77.5%
81.3% 79.5% 80.1% 79.3% 76.5% 77.3% 78.8% 78.2% 77.5%
6.6% 6.2% 6.2% 6.5% 6.1% 5.9% 6.1% 6.2% 6.2%

1.0% 1.5% 1.3% 1.5% 1.8% 1.8% 1.8% 2.0% 2.3%
(0.1%) 0.1% 0.2% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
1.4% 1.4% 1.6% 1.2% 1.2% 1.1% 1.4% 1.1% 1.1%
0.8% 0.7% 0.5% 0.7% 0.8% 0.8% 0.5% 0.7% 0.8%
1.1% 1.1% 1.5% 1.2% 1.0% 1.0% 1.4% 1.1% 1.0%
0.4% 0.4% 0.4% 0.4% 0.3% 0.4% 0.4% 0.4% 0.3%
0.3% 0.4% 0.4% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3%
1.3% 1.2% 1.1% 1.4% 1.2% 1.3% 1.1% 1.3% 1.1%
12.9% 13.0% 13.2% 13.3% 12.8% 12.7% 13.1% 13.2% 13.0%
40.2% 37.2% 34.2% 38.1% 36.8% 36.4% 36.4% 36.9% 36.9%

9.4% 9.9% 7.2% 9.3% 9.8% 10.3% 10.8% 11.8% 12.4%
(0.3%) 0.4% 1.1% 1.2% 0.7% 0.6% 0.6% 0.6% 0.6%
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
8.7% 8.6% 8.6% 7.0% 7.3% 6.7% 8.5% 6.5% 6.8%
4.9% 4.1% 2.8% 4.2% 4.7% 5.0% 3.2% 4.2% 4.6%
6.6% 6.9% 8.0% 6.9% 6.0% 6.4% 8.3% 6.6% 5.7%
2.4% 2.6% 2.5% 2.6% 2.1% 2.5% 2.5% 2.5% 2.0%
1.5% 2.3% 2.2% 1.6% 1.8% 1.7% 1.9% 1.5% 1.7%
7.8% 7.5% 6.2% 8.3% 7.3% 7.7% 6.6% 7.7% 6.8%
81.3% 79.5% 80.1% 79.3% 76.5% 77.3% 78.8% 78.2% 77.5%
(12.6%) (12.1%) (12.1%) 4.0% 3.4% 7.1% 8.0% 5.0% 8.0%

(30.7%) (15.3%) (14.1%) 15.2% 17.7% 13.7% 53.1% 37.1% 35.6%
(16.7%) (275.0%) 12.3% 26.7% (340.0%) 42.9% (44.7%) (45.1%) (13.1%)
NA NA NA NA NA NA NA NA NA
(10.0%) (2.1%) (2.1%) 12.9% (4.4%) (14.3%) 0.0% 0.0% 0.0%
(37.2%) (41.1%) (41.1%) 0.0% 7.9% 34.8% 15.0% 8.0% 7.0%
(20.2%) 11.9% 11.9% 6.6% 1.9% 0.0% 5.0% 3.0% 3.0%
(7.3%) (8.7%) (8.7%) (6.5%) (2.6%) 7.1% 3.0% 3.0% 3.0%
(41.5%) 11.8% 11.8% (35.0%) 33.3% (21.1%) (10.0%) 1.0% 1.0%
(22.8%) (25.2%) (25.2%) 12.4% 5.7% 12.3% 8.0% 0.0% 0.0%
(18.9%) (12.2%) (11.1%) 4.4% 6.2% 6.3% 9.9% 6.9% 9.1%
maller size give it a relative advantage over its
menting such initiatives, but a previously decentralized
ntial to lean the organization
ANTICIPATED ANNUALIZED SG&A SAVINGS (GIVEN ON 3Q CALL) <--- need to work into model
Corporate Restructuring $4.50 with 10Q updated
Regional Consolidation $8.00
Store level Productivity Initiatives $12.50
Total Annualized Savings $25.00
Expenses Related to Restructuring ($7.00)
$18.00
mgmt is focused on maintaining headroom on its covenants by preserving liquidity and cutting inventory levels.
Having only begun to cut costs late in 2008, there may be some additional room for cost cutting. The "low-
hanging fruit" on the cost side has been picked at competitors.
We believe PAG conitnues to have a higher fixed cost structure than competitors. PAG's rent and occupancy
costs are higher than competitors. The company's decentralized structure means that it will be more difficult to
take labor out of the dealerships without hampering operations. The chart below tracks fixed SG&A (calculated
as total SG&A less variable compensation and selling expenses at 42% of Gross profit) as a % of gross profit.
Fixed SG&A/GP = ~ 63%
3QE 4QE
69,984 63,122
25,433 23,681
1,130 1,184
0 0
12,000 14,000
9,523 5,583
11,639 14,157
4,590 4,221
3,030 3,251
13,700 10,832
151,030 140,031
$2,041 $2,090
$742 $784
$33 $39
$0 $0
$350 $464
$278 $185
$340 $469
$134 $140
$88 $108
$400 $359
$0 $0
$4,406 $4,637
12.8% 12.8%
77.1% 78.0%
77.1% 78.0%
5.9% 5.8%
2.3% 2.0%
0.1% 0.1%
0.0% 0.0%
1.0% 1.3%
0.8% 0.5%
1.0% 1.3%
0.4% 0.4%
0.3% 0.3%
1.2% 1.0%
12.8% 12.8%
35.7% 35.1%
13.0% 13.2%
0.6% 0.7%
0.0% 0.0%
6.1% 7.8%
4.9% 3.1%
5.9% 7.9%
2.3% 2.3%
1.5% 1.8%
7.0% 6.0%
77.1% 78.0%
8.0% 5.0%
39.0% 32.4%
13.0% 19.2%
NA NA
0.0% 0.0%
7.0% 7.0%
3.0% 3.0%
2.0% 2.0%
1.0% 1.0%
0.0% 0.0%
9.8% 7.6%
2001 2002 2003 2004
FLOORPLAN INTEREST CALCULATIONS
Floor Plan Assistance/Interest Expense

Floor Plan Interest Expense (as reported on I/S) 26.1 17.9 16.6 19.9
Floor Plan Assistance (included in COGS on I/S) 23.3 23.4 24.2 25.4
Floor Plan Interest Expense net of assistance 2.7 (5.5) (7.6) (5.5)
Floorplan interest expense estimate

Floorplan interest assistance/floorplan interest expense 0.90x 1.31x 1.46x 1.27x
Implied interest rate paid on floorplan 2.97% 3.18%
Libor assumption
Spread over Libor
Vehicle floorplan notes payable outstanding 559 627
Floorplan Interest Expense estimate
EBITDA 10 -20% 8
EQUITY 50 50
DEBT 60 60
TD/TC 45.5% 45.5%
TD/EBITDA 6.0x 7.5x
COVENANT 7.0x 7.0x
2003
###
2005 2006 2007 2008E 2009E 2010E 2011E 1Q 2Q
28.5 41.1 43.5 29.8 18.2 15.2 15.0 4.4 4.8

26.9 27.0 32.4 21.2 16.8 16.8 16.5
1.6 14.1 11.0 8.6 1.4 (1.5) (1.5) 4 5
0.94x 0.66x 0.75x 0.71x 0.92x 1.10x 1.10x 0.00x 0.00x

4.72% 6.27% 6.61% 4.72% 4.30% 4.19% 3.90% 3.16% 3.35%
3.58% 1.13% 0.69% 0.40%
1.14% 3.18% 3.50% 3.50%
604 655 657 631 423 364 385 560 586
Equity Cure Regular Equity Injection Get much more milage out of equity injection
taken as equity cure (i.e. EBITDA credit) rather
0.75 8.75 -15% 8.4375 1 than as straight capital structure change
50 0 50
60 60
45.5% 45.5%
6.9x 7.1x
7.0x 7.0x
2004 2005
###
###
###
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
4.2 4.5 4.1 4.7 4.9 6.2 6.6 7.5 6.5 8.0 8.9
5.8 6.5 6.6 6.5 6.5 7.2 6.6 6.6 6.4
4 5 (1.7) (1.8) (1.7) (0.3) 0.1 0.3 (0.1) 1.4 2.5
0.00x 0.00x 1.41x 1.38x 1.36x 1.04x 0.99x 0.97x 1.01x 0.83x 0.72x
3.13% 3.33% 2.38% 3.08% 3.90% 4.05% 4.05% 4.54% 4.26% 4.56% 5.53%
489 602 625 673 557 651 690 613 499 614 647
uity injection
A credit) rather
2006 2007 2008E
2008E
###
2Q 3Q 4Q 1Q 2Q 3Q 4QE 1QE 2QE 3QE
11.0 10.1 11.0 11.2 11.2 10.6 10.4 8.4 7.5 6.9
7.1 7.2 6.3 7.1 8.6 9.3 7.4 5.9 5.3 4.8
3.9 2.9 4.7 4.1 2.6 1.3 3.0 2.5 2.3 2.1
0.65x 0.71x 0.57x 0.63x 0.77x 0.88x 0.71x 0.70x 0.70x 0.70x
6.70% 6.60% 6.27% 6.68% 6.71% 6.88% 6.20% 5.35% 5.30% 6.25%
0.00% 3.60% 3.30% 4.25%
7.33% 1.75% 2.00% 2.00%
657 613 701 671 667 617 674 690 660 563
9.2 8.7 8.8
2009E 2010E 2011E
2009E
2010E
2011E
4QE 1QE 2QE 3QE 4QE 1QE 2QE 3QE 4QE 1QE 2QE
7.0 5.0 4.7 4.2 4.3 4.1 4.0 3.6 3.5 3.7 3.7
5.3 4.3 4.2 4.0 4.3 4.5 4.4 4.0 3.9 4.0 4.1
1.8 0.8 0.5 0.2 0.0 (0.4) (0.4) (0.4) (0.4) (0.4) (0.4)
0.75x 0.85x 0.90x 0.95x 1.00x 1.10x 1.10x 1.10x 1.10x 1.10x 1.10x
5.17% 4.25% 3.75% 3.75% 3.75% 4.25% 4.55% 4.05% 3.90% 3.90% 3.90%
3.17% 1.50% 1.00% 1.00% 1.00% 0.75% 1.05% 0.55% 0.40% 0.40% 0.40%
2.00% 2.75% 2.75% 2.75% 2.75% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50%
613 491 456 310 435 385 352 356 362 376 381
7.9 5.2 4.3 2.9 4.1 4.1 4.0 3.6 3.5 3.7 3.7
4,100 4,000 3,600 3,530 3,668 3,711
384,700 351,800 355,600 362,040 376,156 380,618
4.26% 4.55% 4.05% 3.90% 3.90% 3.90%
3QE 4QE
3.9 3.8
4.3 4.1
(0.4) (0.4)
1.10x 1.10x
3.90% 3.90%
0.40% 0.40%
3.50% 3.50%
398 385
3.9 3.8
3,879 3,753
397,797 384,927
3.90% 3.90%
MARKET SIZE
$621,000,000,000
92%
$54,000,000,000
8%
$675,000,000,000
$32,000,000 avg revenue per private dealership <-- is this right or is this private groups
19,406 number of private dealerships if groups then this would make the dealership num
2,089 number of publicly owned dealerships
$25,852,783 avg revenue per public dealership
21,495 total number of dealerships
PARTS AND SERVICE
2000 2006
Avg All Avg All
Dealership Dealers Dealership Dealers
Total service and parts sales $3,315,077 $73.4 3794920 $80.50
Total gross profit/ S&P sales 44.50% 46.20%
Total net profit/ S&P sales 5.60% 7.10%
Total service orders written 10320 229 mm 12123 261 mm
Total S&P sales per customer repair order $186 $208
Total S&P sales per warranty repair order $207 $232 254,700
Number of technicians (incl body shop) 11 245,865 12 388,140
Number of service bays (ex body shop) 18 387,625 18
Total Parts Inventory $236,400 5.2 bn 275,151
Avg customer mechanical labor rate $60 $83
source: NADA industry analysis division 22141.2655
ADJUSTED LEASE VS OWN ANALYSIS

AS REPORTED PRO FORMA
AN GPI AN GPI
Sales 18989 6083
COGS 15944 5119
Gross Profit 3045 964
Reported SG&A 2165 740
Rent expense (included in SG&A) 61 70
Rent Expense /Gross Profit 2.0% 7.3%
SG&A/Gross Profit 71.1% 76.8% (5.7%)
Adjustments
Removed reported rent for GPI 0 -70
Include pro forma rent for GPI (AN rent/gp * GPI gp) 0 19
Adjusted SG&A 2165 689
Adj SG&A/Gross Profit 71.1% 71.5%
With above proforma comparison seek to make comparisons on an equivalent basis using comparabel financing and
accounting decisions. While different financing decisions make it hard to compare operating margins on a reported
basis, net margins are more appropriate as they capture both the rent expense and the interest expense.
his private groups
uld make the dealership number here greater
2006 Franchised P&S Industry Revenue Mix

Customer Mechanical laobr 20% Total Parts* 55%
Customer Mechanical parts 15% Total Labor 45%
Wholesale Parts 15%
Warranty Parts 10% * about 15% derived from
Customer Body Labor 8% wholesaling parts to other
Warranty Labor 7% installers
Internal Labor 6%
Internal Parts 5%
Customer Body Parts 4%
Counter Parts 3%
Other Parts 3%
Sublet Labor 3%
Other Labor 1%
100%
(0.4%)
arabel financing and

gins on a reported
07 SAAR IMPLIED O8
16.1 12.9
ASBURY AUTOMOTIVE SENSITIVITY ANALYSIS

SALES 2007 DISTRESSED Y/Y % chg
New 3,411,715 2,729,372 -20% assume revenue changes in equal % as SAAR, probably conservative as Honda exposure sh
Used 1,478,195 1,256,466 -15%
P&S 705,888 670,594 -5% probably very conservative, grew 1% in 1Q
F&I 163,536 133,301 -18.5% assume declines 1 for 1 with combined new and used sales, probably overly conservative
5,759,334 4,789,732 -16.8%
COGS Fixed % 7.5% take 07 COGS and assume est fixed % is constant and while remainder fluctuates 1 for 1 wi
New 3,170,342 2,583,829 (18.5%)
Used 1,352,986 1,165,259 (13.9%)
P&S 340,858 325,093 (4.6%)
F&I 0 0
4,864,186 4,074,181 (16.2%) General modeling -Not for ABG specifically
GROSS PROFIT (ex D&A)
New 241,373 145,543 (39.7%) 1) determine sales volume sensitivity to GD
Used 125,209 91,207 (27.2%) 2) any mix or other changes to gross margin
P&S 365,030 345,500 (5.4%) 3) is there a publicly stated variable/fixed ra
F&I 163,536 133,301 (18.5%) compare to histoircal operating pull throug
895,148 715,551 (20.1%) 4) when combined with current margin run r
GROSS MARGIN margins on incremntal sales approximate
New 7.1% 5.3% (24.6%) lowest since 00 was 6.9% in 2005 equates to about $0.15 EPS. A 7% declin
Used 8.5% 7.3% (14.3%) lowest since 00 was 8.4% in 2004
P&S 51.7% 51.5% (0.4%) lowest since 00 was 50.7% in 2005
F&I 100.0% 100.0% 0.0%
15.5% 14.9% (3.9%)
Fixed % 33% take 07 SG&A and assume est fixed % is constant and while remainder fluctuates 1 for 1 wit
SG&A 690,930 612,995 (11.3%)
% of GP 77.2% 85.7% highest since 2000 was 79.2% in 2004, guidance based on 15,2-15.5 SAAR is up 100-150 bp
EBITDA 204,218 102,555 (49.8%) First Call consensus EBITDA currently at $178.4 mm
Total interest (incl floorplan) 82,713 82,713 0.0% assume floorplan constant, should get benefit from lower LIBOR and hence lower floorplan in
EBITDA Coverage 2.5x 1.2x (49.8%)
Total Fixed Cost % 12.6%
PENSKE AUTOMOTIVE SENSITIVITY ANALYSIS SONIC AUTOMOTIVE SENSITIVITY ANALYSIS

SALES 2007 DISTRESSED Y/Y % chg SALES 2007
New 7,008,100 5,606,480 -20% New 5,056,480
Used 3,149,145 2,676,773 -15% Used 1,877,666
P&S 1,413,986 1,343,287 -5% P&S 1,191,347

F&I 290,144 236,613 -18.4% F&I 211,440
New Fleet & Used Wholesale 1,096,393 931,934 -15.0% 8,336,933
12,957,768 10,795,087 -16.7%
COGS Fixed % 7.5%
COGS Fixed % 7.5% New 4,705,691
New 6,417,064 5,229,907 (18.5%) 0.1485779032 Used 1,750,068
Used 2,898,051 2,495,946 (13.9%) 0.141956071 P&S 589,589
P&S 623,585 594,744 (4.6%) F&I 0
F&I 0 0 7,045,348
New Fleet & Used Wholesale 1,093,830 942,061 (13.9%)
9,938,700 8,320,598 (16.3%) GROSS PROFIT (ex D&A)
GROSS PROFIT (ex D&A) New 350,789
New 591,036 376,573 (36.3%) Used 127,598
Used 251,094 180,827 (28.0%) P&S 601,758
P&S 790,401 748,543 (5.3%) F&I 211,440
F&I 290,144 236,613 (18.4%) 1,291,585
New Fleet & Used Wholesale 2,563 (10,127) (495.1%)
1,925,238 1,532,428 (20.4%) GROSS MARGIN
GROSS MARGIN New 6.9%
New 8.4% 6.7% (20.4%) Used 6.8%
Used 8.0% 6.8% (15.3%) P&S 50.5%
P&S 55.9% 55.7% (0.3%) F&I 100.0%
F&I 100.0% 100.0% 0.0% 15.5%
New Fleet & Used Wholesale 0.2% (1.1%) (564.9%)
14.9% 14.2% (4.5%) Fixed % 33%
SG&A 967,706
Fixed % 33% % of GP 74.9%
SG&A 1,525,328 1,354,759 (11.2%)
% of GP 79.2% 88.4% EBITDA 323,879
EBITDA 399,910 177,669 (55.6%) Total interest (incl floorplan) 107,613
Total interest (incl floorplan) 130,994 130,994 0.0% EBITDA Coverage 3.0x
EBITDA Coverage 3.1x 1.4x (55.6%) Total Fixed Cost %
Total Fixed Cost % 12.9%
ABG SENSITIVITY TO NEW VEHICLE SALES DOWNSIDE

DB FY09E EAM FY09E We believe US auto retailer shares are pricing in significant downside based on the severe ris
Current 2009 SAAR Forecast 13,200,000 10,116,979 demand levels as well as going concern risk at the US OEMS. Considering the severe uncert
Change in US Industry (1,200,000) (1,000,000) recovery and ABG's specific covenant risk, we believe it is appropriate to value the US retaile
Revised 2009 SAAR 12,000,000 9,116,979 10X our FY09 downside scenario.
Factors that could impair performance include weaker demand driven by factors such as a pu
Reduction in new units (7,888) (6,452) a weaker US economy, or declining consumer wealth. Further weakness in used vehicles or n
New Vehicle (and F&I) gross profit/unit $3,014 $3,021 downside risk. Upside potential includes improved market/economic conditions and the poten
Gross Profit Impact ($23,778,236) ($19,492,673)
Variable SG&A E 30% 5,743,321 4,728,616

SG&A/Gross Profit 80.5% HYPOTHETICAL RETURN ANALYSIS ON TALF LEVERAGED ABS
Year AAA ABS AAA ABS
After Tax Impact ($13,238,394) ($9,227,738) Amortization
0 100
Current FY09E EPS $0.95 $0.42 1 40 60
EPS Impact ($0.40) ($0.28) 2 20 40
Downside FY09E EPS $0.55 $0.14 3 10 30
New Vehicles Sold - 1H08 48,540 47,640

Total Industry 1H08 7,384,180 7,384,180
Market Share 0.7% 0.6% consumers have the ability to stretch the useful life of their vehicles
ABG SENSITIVITY TO PARTS AND SERVICE DECLINE given that the average age of the fleet is about 8.3 years (chart 20), whic
FY08E Parts and Service Revenue $728,985,000 678,400,000 there is material downside risk, potentially much lower than January’s S
Downside % revenue decline (1.0%) 1.0% 9.6mm.
P&S Gross Margin 51.2% 49.8%

Gross Profit Impact (3,728,758) 3,379,459
Variable SG&A EST 25% $750,527 ($683,170)
After Tax Impact (1,816,721) 1,690,420

EPS Impact ($0.06) $0.05
ABG SENSITIVITY TO LIBOR RATES
LIBOR Sensitive Borrowings (2 $659,700,000 659,700,000
Change in LIBOR 1.0% 1.0%
After Tax Impact ($4,024,170) ($4,135,943)
EPS Impact ($0.12) ($0.13) IMPACT OF CHRYSLER LIQUIDATION
ABG TOTAL DOWNSIDE SENSITIVITY TO SAAR,P&S AND LIBOR EBITDA Impact
Total Gross Profit Impact (27,506,994) (16,113,214) % of revenue 2%
Total Variable SG&A 6,493,849 4,045,446 EBITDA Margin 1.50%
Total After Tax Impact (19,079,285) (11,673,262) EBITDA loss ($1,095,180)
Cash Impact
Current FY09E EPS $0.95 $0.42 Inventory Loss
Total EPS Impact ($0.58) ($0.35) C inventory $20,000,000
Downside FY09E EPS $0.37 $0.07 % loss 50%
$ inventory loss $10,000,000
Costs to close dealerships $5,000,000
Total cash costs $15,000,000
Since September, Carter Myers Automotive has cut 55 sales and marketing positions — 18 to 20 percent of the work force at the Charlottesville, Va., dealership group, which has 12
"The world changed with September," says owner H. Carter Myers III, a former NADA chairman. "It took us 21/2 months to adjust our business model to the new realities of a market
"Our focus is to be able to operate profitably on two-thirds of the business that we used to expect."
At the NADA convention in New Orleans last week, McEleney, the association's new chairman, forecast that 1,200 of the nation's approximately 20,000 dealerships would close in 20
Dealers hope they have done enough cutting in 2008 to weather 2009. Gillman's Wimbish says more layoffs are not the answer.
"You can only cut so much until you hit muscle," she says. "You've got to have one-time cuts that hurt, then you've got to go back to focusing on growth."
Analyze line by line factors and take a
WESCO FUEL SAVINGS IMPACT

Freigtht/sales
Fuel portion
probably conservative as Honda exposure should be a positive, though maybe offset by FL @ 30% of revenue Oil price 08
Oil price 09
% chg
d used sales, probably overly conservative Impact on net income
EPS impact
tant and while remainder fluctuates 1 for 1 with revenue, all segments assumed same, probably different for each - P&S higher?
WESCO 2008E y/y chg
Revenue 6131.3
GM* 19.6% 1201.7348 -7%
SG&A ** 13.50% 827.7255 65%
General modeling -Not for ABG specifically. 1.555 relationship multiplier D&A 0.40% 24.5252 0.40%
-4.50% GDP OM 5.700% 349.4841
1) determine sales volume sensitivity to GDP or macro (7.00%) Vol Decline Cont M
2) any mix or other changes to gross margin 19% Shares out
3) is there a publicly stated variable/fixed ratio of SG&A or total cost and how does that Tax Rate
compare to histoircal operating pull through rates? <-- co. says 35/65 (35% variable SG&A) EPS impact per 1% change in volume
4) when combined with current margin run rates, this suggests that incrmenetal (contribution) Total EPS impact for above change in volume
margins on incremntal sales approximate 15%. This means that every 1% in unit volumes *For this exercise we assume no changes in unit volume mix that would affect gross marg
equates to about $0.15 EPS. A 7% decline then equates to $1.04. recent mix trends have been negative for GM, the net effect on EBIT is roughly neutral sin
business seems to have lower GM and lower operating expenses attached - since there i
impact on EBIT, we will assume no dilutive effects of mix.
** Wesco has publicly stated (and historical operating pull through rates would suggest) th
fixed ratio of SG*A is roughly 35/65. When combined with current margin run rates, it sugg
incremental (contribution) margins on incrmental sales approximate 15%. This means tha
tant and while remainder fluctuates 1 for 1 with revenue in unit volumes equates to about $0.15 EPS.
ce based on 15,2-15.5 SAAR is up 100-150 bp - would imply 33% SG&A, 7.5% COGS fixed, -10% used. +1% P&S
om lower LIBOR and hence lower floorplan interest, however probably offset to some degree by lower inventory turnover
EST COPPER EFFECTS WESCO

(assuming 1 qtr lag from market spot) Q107 Q207
Avg SPOT $ (1 qtr lag) $3.21 $2.69
Copper Effects on Sales:
TIVITY ANALYSIS Y/Y chg, spot price lagged 1 qtr
DISTRESSED Y/Y % chg Seq chg, spot price lagged 1 qtr
4,045,184 -20% Est copper % of total sales
1,596,016 -15% Est copper total sales
Current yr total co sales
1,131,780 -5% Prior yr total co sales
172,015 -18.6% Y/Y chg, total copper sales
6,944,994 -16.7% Y/Y sales growth from copper
Copper Effects on Gross profit

3,835,138 (18.5%) Incr yoy copper sales @ 15% incremental GM
1,507,246 (13.9%) Est copper total sales
562,321 (4.6%) Copper COGs at 85%
0 Assumed inventoried copper (55%)
5,904,705 (16.2%) Seq chg. Copper
Effect of seq copper on qtrly GP
Total Copper Effect on GP
210,046 (40.1%)
88,770 (30.4%) SG&A effects of copper (75% pullthru)
569,459 (5.4%) Total EBIT effects from copper
172,015 (18.6%)
1,040,290 (19.5%) Total Est EPS effects
5.2% (25.2%)
5.6% (18.2%)
50.3% (0.4%)
100.0% 0.0%
15.0% (3.3%)
859,455 (11.2%) SAH's lower cost structure should lead to lesser EBITDA decline
82.6% all else equal
180,835 (44.2%)
115,563 7.4% assume floorplan constant but more interest for taking mortgages on BS
1.6x (48.0%)
12.5%
n significant downside based on the severe risks in the industry, including low visibility into medium term
the US OEMS. Considering the severe uncertainty in the industry including low visiiblity in to any type of
believe it is appropriate to value the US retailers based on downside scenarios. Our target price is based on
weaker demand driven by factors such as a pullback from leasing by banks and captive finance companies,
wealth. Further weakness in used vehicles or new luxury (two key parts of ABG's business) is an additional
ved market/economic conditions and the potential ability of the company to outperform many of its peers.
NALYSIS ON TALF LEVERAGED ABS

TALF Loan TALF Haircut Leverage Interest Carry Cashflow Total CF
10%
90 10 10.0x -10 -10
50 10 6.0x 3.15 3.15
30 10 4.0x 1.95 1.95
20 10 3.0x 1.35 10 11.35
%Par Recovery 100% 22.73%
o stretch the useful life of their vehicles

the fleet is about 8.3 years (chart 20), which means
sk, potentially much lower than January’s SAAR of
Both luxury and non-luxury autos show high correlation to PCE (lux R2 - .58, non lux R2 = .67) but luxury is more sensitive to PCE changes
(steeper slope on the regression). These findings defy the notion that luxury car makers are more defensively positioned in economic down
turns because their end customers commit a smaller portiion of their overall wealth to a new vehicle purchase.
Luxury autos have been losing share since 05 housing peak
High end luxury more reslient than "regular luxury"
Wealth Effect-Equities ($bn) Wealth Effect-Real Estate ($bn)

US Equity Mket value 12/31/07 17,600 US Equity Mket value 12/31/07 20,848
08 Decline 39% 08 Decline 12%
Equity value decline 6,864 Equity value decline 2,502
Wealth Effect Factor 3% Wealth Effect Factor 5%
Effect on consumer spending 206 Effect on consumer spending 125
Top 20% household Top 80% household

spending allocation 39% spending allocation 97%
Total 07 consumer spending 9,734 Total 07 consumer spending 9,734

Wealth Effect as % of spending 2.1% Wealth Effect as % of spending 1.3%
As % of top 20 % of household 5.4% As % of top 20 % of household 1.3%
all else equal a rotation out of luxury and into lower end segments would benefit the D3's relatively greater non-luxury exposure.
ottesville, Va., dealership group, which has 12 franchises in five stores. The group's 2008 profits will be down by about a third.
usiness model to the new realities of a market running around 11 or 10 and a half million units a year.
oximately 20,000 dealerships would close in 2009. About 20 percent of closures will be converted to used-car businesses that employ fewer people, says Taylor. New-vehicle dealerships average 53 e
using on growth."
Analyze line by line factors and take all of these factor analyses to generate a Net Income walk
WESCO FUEL SAVINGS IMPACT WESCO C$ IMPACT

1.8% 6131.3 $107.3 % of C$ sales 10% 613.1
33% $35.8 EBIT margin 5.040% 30.9
$100 08 US$/C$ $0.95
$52 Current US$/C$ $0.80 US has strengthened against C$ - Canadian revenue translates into less US$
(48.0%) Impact on EBIT ($4.9)
Impact on net income ($12.0) Impact on Net Income ($3.4)
($0.28) Impact on EPS ($0.08)
Tax rate is higher given the lower % of international sales

2009E
5702.109
1117.6 19.6%
807.44622525 14.2%
24.5252 0.40%
285.64193875 5.040%
14.9% <-- non taxable impact?
43.1
30%
$0.15
($1.04)
it volume mix that would affect gross margins (although
he net effect on EBIT is roughly neutral since project
perating expenses attached - since there is little if any
erating pull through rates would suggest) that its variable/

bined with current margin run rates, it suggests that
al sales approximate 15%. This means that every 1% change
255
1.1
408.2 280.5
Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309

$3.47 $3.50 $3.28 $3.52 $3.83 $3.49 $1.85 $1.62 $1.62
2% 31% 10% 0% -44% -54% -58%

(6.3%) 7.3% 8.8% (8.9%) (47.0%) (12.4%) 0.0%
15% 15% 15% 15% 8.5% 6.9% 6.3%
222.3 298.0 255.9 222.7 111.7 95.4 90.1
1465.2 1587.8 1628.1 1450.2 1320.7 1382.1 1420.4
1450.6 1518.1 1545.6 1489.2 1465.2 1587.8 1628.1
4.7 70.3 24.1 -0.6 -12.2 -202.6 -165.8
0.3% 4.6% 1.6% (0.0%) (0.8%) (12.8%) (10.2%)
0.7 10.5 3.6 (0.1) (1.8) (30.4) (24.9)

222.3 298.0 255.9 222.7 111.7 95.4 90.1
189.0 253.3 217.5 189.3 95.0 81.1 76.6
103.9 139.3 119.6 104.1 52.2 44.6 42.1
0.7 10.5 3.6 (0.1) (1.8) (30.4) (24.9)
0.7 10.5 3.6 (0.1) (1.8) (30.4) (24.9)
$0.02 $0.24 $0.08 ($0.00) ($0.04) ($0.70) ($0.58)

or. New-vehicle dealerships average 53 employees, he says.
C$ - Canadian revenue translates into less US$
Q409
$1.62
-54%
0.0%
7.0%
86.6
1243.5
1450.2
-136.2
(9.4%)
(20.4)
86.6
73.6
40.5
(20.4)
(20.4)
($0.47)
2009 EPS $25,589 $0.78
New volume $17,082 $0.52 Gross Margin 6.8%
New Margin ($3,406) ($0.10) $13,676 13,719
Used Volume $14,069 $0.43 8.2%
Used Margin $2,277 $0.07 $16,346 16,533
P&S revenue $1,181 $0.04 49.8%
P&S Margin $12,875 $0.39 $14,055 14,104
F&I Volume $10,984 $0.33 $880.48
F&I/Unit $12,248 $0.37 incremental Inc SG&A/GP $23,231 24,486
SG&A ($36,641) ($1.11) $2.05 54.4%
D&A and Other $166 $0.01
Floor Plan Interest $2,770 $0.08
Non FP Interest ($576) ($0.02)
Taxes ($13,376) ($0.41)
2010 EPS $45,242 $1.38
$1.38
ABG Debt allowed to repurchase under bank covenant

Cash used Disc to Face Face Value Retired
$30.0 55.0% $66.7
Asset Sales $50 $25.0 45.0% $45.5
$55.0 49.1% $112.1
MIN LTM EBITDA $92,000.0 Beg Debt $607.0

Coveant Threshold 5.0x End Debt $494.9 <-- Looks like the cost cuts surgically designed to kee
Est Covenant Level 5.4x
ABG has nothing outstanidng under either credit facility and the company is not in negotiations with its banks to amend its existing covenants.
ABG difference vs SAH

'-- ABG was more aggressive in cost cutting and is expected to generate FCF as opposed to burning it at SAH
-- ABG has nothing drawn on the line -- SAH would have to draw on to fund convert maturities (unless maturities don’t have to be paid in cash a
-- ABG has not maturities upcoming vs large maturities at SAH
12/2/2010
Net EBIT impact of acq + divestiture
Heavy Truck revenue 144.8

Acquisition revenue 125
Heavy Truck gross margin 4.0%
Acquisition gross margin 6.6%
Heavy Truck gross profit 5.792
Acquisiton gross profit 8.25
Net gross profit change 2.458
SG&A/GP 77.5%
Variable SG&A/GP 30%
Incremental SG&A $0.57
Net chg in EBIT $1.89
e the cost cuts surgically designed to keep in compliance
d its existing covenants.
maturities don’t have to be paid in cash and converts take equity instead)

Annual vehicle sales and profit projections

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all annual numbers restated and check as of 06 10K but NOT RESTATED (06 and older) to reflect status

Fixed Costs - include rent, utililities, depreciation

Advertising/Vehicle gross 12%-13% in the old days it used to be 15%.

268,082 76,053 73,372 76,958 70,741 77,561 77,778 78,969 78,852

575,887 158,426 160,185 168,395 147,455 163,291 169,458 172,568 167,580

$2,127 $2,001 $1,711 $1,690 $2,002 $1,971 $1,769 $1,766 $2,105

$4,569 $4,169 $3,736 $3,699 $4,173 $4,151 $3,853 $3,858 $4,474

6.0% 5.9% 5.2% 5.3% 5.4% 5.7% 5.2% 5.3% 5.7%

36.2% 33.9% 34.3% 34.1% 36.7%

6.5% 2.0% 6.0% 2.6% 11.5%

AR AS THEY MOVE TO A MORE CENTRALIZED STRUCTURE

an you go with cost savings?

ory, personnel and advertising.

. Can y ou help us understand the prioriities there in 2010?

ing in grosses to narrow further from these levels?

GP growth 10% GP growth 20% GP growth 40%

80,926 78,822 78,304 62,248 73,900 71,600 68,800 63,300 59,600

$1,983 $1,834 $1,869 $2,024 $2,161 $1,949 $2,135 $2,898 $2,579

5.7% 5.2% 5.3% 4.6% 6.1% 5.8% 6.1% 6.9% 7.1%

36.1% 33.9% 34.3% 34.1% 37.9% 36.0% 37.7% 35.0% 40.2%

4.3% 1.3% (0.8%) (21.1%) (8.7%) (9.2%) (12.1%) 1.7% (19.4%)

ANTICIPATED ANNUALIZED SG&A SAVINGS (

mgmt is focused on maintaining headroom on its

Having only begun to cut costs late in 2008, there

g to see that we are

up the scale quickly as

as total SG&A less variable compensation and se

work is ~ 85% done.

operate in their local Fixed SG&A/GP = ~ 63%

into SG&A. In the

ating income. While

he sales process and

ink you should expect

bit more, because it

are quite a few enhancements

time where we've

es in that going forward.

% of gross profit, we're

62,600 60,500 55,664 62,000 64,700 64,800 60,117 65,100 69,876

$2,326 $2,061 $2,305 $2,305 $2,170 $2,071 $2,173 $2,247 $2,144

6.6% 6.2% 6.2% 6.5% 6.1% 5.9% 6.1% 6.2% 6.2%

40.2% 37.2% 34.2% 38.1% 36.8% 36.4% 36.4% 36.9% 36.9%

(12.6%) (12.1%) (12.1%) 4.0% 3.4% 7.1% 8.0% 5.0% 8.0%

Floor Plan Assistance/Interest Expense

Floorplan interest expense estimate

28.5 41.1 43.5 29.8 18.2 15.2 15.0 4.4 4.8

0.94x 0.66x 0.75x 0.71x 0.92x 1.10x 1.10x 0.00x 0.00x

PARTS AND SERVICE

source: NADA industry analysis division 22141.2655

ADJUSTED LEASE VS OWN ANALYSIS

2006 Franchised P&S Industry Revenue Mix

arabel financing and

ASBURY AUTOMOTIVE SENSITIVITY ANALYSIS

EBITDA Coverage 2.5x 1.2x (49.8%)

Total Fixed Cost % 12.6%

PENSKE AUTOMOTIVE SENSITIVITY ANALYSIS SONIC AUTOMOTIVE SENSITIVITY ANALYSIS

P&S 1,413,986 1,343,287 -5% P&S 1,191,347

EBITDA 399,910 177,669 (55.6%) Total interest (incl floorplan) 107,613

EBITDA Coverage 3.1x 1.4x (55.6%) Total Fixed Cost %

Total Fixed Cost % 12.9%

ABG SENSITIVITY TO NEW VEHICLE SALES DOWNSIDE

Variable SG&A E 30% 5,743,321 4,728,616