Group 1 Automotive Reports 25 Percent Increase in Third-Quarter Earnings Per Share

HOUSTON--Group 1 Automotive, Inc. , a Fortune 500 automotive retailer, today reported that net income for the third quarter ended Sept. 30, 2006, increased 22.2 percent to $26.4 million, on revenues of $1.6 billion. Diluted earnings per share grew 25.0 percent to $1.10. This compares with net income of $21.6 million, or $0.88 per diluted share, in the third quarter of 2005.

Group 1’s third-quarter performance featured the following highlights:

Same-store revenue was flat as strong performance from the company’s Toyota franchises offset weaker sales at its domestic stores. Toyota/Scion/Lexus represented nearly 38 percent of new vehicle unit sales in the quarter.
Gross margin improved 10 basis points to 15.6 percent, primarily attributable to an 80 basis-point increase in total used vehicle margin and a 30 basis-point increase in parts and service margin.
Used vehicle gross profit rose 8.5 percent, reflecting an increase of 4.8 percent in used retail revenues and a 7.2 percent increase in retail gross profits.
New vehicle gross profit increased 2.7 percent on 3.3 percent higher revenues.
Finance and insurance revenues increased 2.6 percent, reflecting higher new vehicle unit sales from recent acquisitions.

Group 1 achieved a 130 basis-point reduction in total selling, general and administrative expenses to 75.3 percent of gross profit, primarily attributable to gross profit improvements and its continued focus on increasing operating efficiencies.

Operating margin improved 60 basis points from the prior year to 3.6 percent, and pretax margin improved 40 basis points to 2.6 percent.

“Our margin improvements reflect management’s continued focus on operations, particularly in our used vehicle business, where gross profit per unit sold increased by more than 13 percent,” said Earl J. Hesterberg, Group 1’s president and chief executive officer. “The results we’ve delivered in this challenging new vehicle market are a testament to the success of the initiatives we are implementing and the strength of our management team.”

On a same-store basis, total revenues were flat as strong Toyota new vehicle sales and improved used vehicle retail sales were offset by lower domestic new vehicle sales and a reduction in used vehicle wholesale sales. Specifically, used vehicle retail revenues increased 4.9 percent on 1.8 percent higher unit sales, and gross profit per retail unit increased $90 year over year. New vehicle revenues were basically flat as strong growth of 8.3 percent in import/luxury vehicle unit sales was offset by a 17.8 percent decrease in domestic brand sales. Parts and service revenues rose 1.5 percent, and finance and insurance revenues fell 0.1 percent. Total gross margin improved 20 basis points to 15.7 percent.

Total floorplan interest expense expanded 8.7 percent to $10.1 million, reflecting a continued upward trend in interest rates. Partially offsetting the higher rates was a $141.7 million decrease in weighted average floorplan borrowings. Other interest expense also increased $1.0 million, or 23.5 percent, primarily due to a $237.5 million increase in weighted average borrowings outstanding in the period, reflecting the issuance of the 2.25% convertible notes in June.

Share Repurchase

During the quarter, Group 1 repurchased 20,000 shares of its common stock at an average price of $45.88 under a board authorization to fund the share delivery requirements of its existing employee stock purchase plan.

Acquisition and Disposition Update

As previously announced, during the third quarter, Group 1 acquired a Toyota/Scion franchise and a Nissan franchise in the Los Angeles metro market; a Buick franchise in Oklahoma City that is operated out of its existing Pontiac-GMC dealership; the Pat Peck dealerships consisting of Honda, Kia and two Nissan franchises in Alabama and Mississippi; and, in October, three import stores in New Jersey that include BMW, Honda and two Acura franchises.

“With the addition of these franchises, we have shifted our brand mix to over 70 percent import/luxury from 61 percent a year ago,” said Hesterberg. “We continue to look for acquisition opportunities that will improve our portfolio of dealerships and position us for future growth.”

Year to date, the company has added one domestic franchise and 14 import franchises, including three Nissan; two each of Toyota/Scion, Acura and Honda; and a single BMW franchise. These 15 franchises are expected to generate $732 million in estimated annual revenues. The addition of these 15 franchises substantially completes the company’s acquisition program for 2006.

Also previously announced, Group 1 disposed of three dealerships during the quarter that generated $63.3 million in revenues during the trailing twelve-month period. Year to date, the company has disposed of 13 franchises with $197.8 million in trailing twelve-month revenues, exceeding its full-year target of $190 million.

Management’s Outlook

Group 1 raised its 2006 full-year earnings guidance range from $3.40 - $3.70 to $3.65 - $3.75 per diluted share. This guidance is based on the following assumptions:

Industry seasonally adjusted annual sales rate of 16.5 to 16.7 million vehicles.
An estimated average of 24.4 million shares outstanding.
The implementation of SFAS No. 123(R), “Share Based Payment,” that the company estimates will have a full-year negative earnings impact of $0.10 per diluted share.

This guidance excludes the impacts of any future acquisitions or dispositions. It also excludes any potential impairment charges as the company undertakes its required annual review of goodwill and intangible franchise rights during the fourth quarter.

Third-Quarter Conference Call and Presentation

Group 1’s senior management team will host a conference call to discuss these results today at 10 a.m. EST.

The live simulcast call, and a slide presentation, may be accessed on the Internet at www.group1auto.com through the Investor Relations section. A replay will be available for 30 days.

The conference call will also be available live by dialing in 10 minutes prior to the call at: 800-219-6110 (domestic) or 303-262-2140 (international).

A telephonic replay will be available through Nov. 7 by dialing: 800-405-2236 (domestic) or 303-590-3000 (international), with passcode: 11073239#.

About Group 1 Automotive, Inc.

Group 1 owns 101 automotive dealerships comprised of 143 franchises, 33 brands and 30 collision service centers in Alabama, California, Florida, Georgia, Louisiana, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexico, New York, Oklahoma and Texas. Through its dealerships, the company sells new and used cars and light trucks; arranges related financing, vehicle service and insurance contracts; provides maintenance and repair services; and sells replacement parts.

Group 1 Automotive can be reached on the Internet at www.group1auto.com.

This press release contains "forward-looking statements," which are statements related to future, not past, events. In this context, the forward-looking statements often include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks” or “will.” Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic conditions, (b) the level of manufacturer incentives, (c)�the future regulatory environment, (d) our ability to obtain an inventory of desirable new and used vehicles, (e) our relationship with our automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (f)�our cost of financing and the availability of credit for consumers, (g) our ability to complete acquisitions and dispositions and the risks associated therewith, and (h) our ability to retain key personnel. These factors, as well as additional factors that could affect our forward-looking statements, are described in our Form 10-K under the headings “Business—Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” We urge you to carefully consider this information. We undertake no duty to update our forward-looking statements, including our earnings outlook.

FINANCIAL TABLES TO FOLLOW

Group 1 Automotive, Inc.

Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)

�

Three Months Ended September 30,

Nine Months Ended September 30,

2006�

2005�

% Change�

2006�

2005�

% Change�

REVENUES:

New vehicle retail sales

$ 1,009,300�

$ 977,492�

3.3�

$ 2,837,827�

$ 2,791,812�

1.6�

Used vehicle retail sales

292,931�

279,484�

4.8�

848,611�

819,816�

3.5�

Used vehicle wholesale sales

83,264�

98,439�

(15.4)

251,010�

301,419�

(16.7)

Parts and service

165,296�

165,017�

0.2�

492,803�

487,534�

1.1�

Finance and insurance

51,021�

49,737�

2.6�

146,172�

143,648�

1.8�

�

Total revenues

1,601,812�

1,570,169�

2.0�

4,576,423�

4,544,229�

0.7�

�

COST OF SALES:

New vehicle retail sales

937,629�

907,731�

3.3�

2,631,330�

2,594,379�

1.4�

Used vehicle retail sales

254,648�

243,756�

4.5�

738,160�

715,978�

3.1�

Used vehicle wholesale sales

84,757�

100,248�

(15.5)

252,254�

303,702�

(16.9)

Parts and service

74,930�

75,316�

(0.5)

224,345�

222,473�

0.8�

�

Total cost of sales

1,351,964�

1,327,051�

1.9�

3,846,089�

3,836,532�

0.2�

�

GROSS PROFIT

249,848�

243,118�

2.8�

730,334�

707,697�

3.2�

�

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

188,043�

186,216�

1.0�

551,463�

560,853�

(1.7)

�

DEPRECIATION AND AMORTIZATION EXPENSE

4,449�

4,597�

(3.2)

13,384�

14,522�

(7.8)

�

ASSET IMPAIRMENTS

-�

4,987�

(100.0)

-�

4,987�

(100.0)

�

INCOME FROM OPERATIONS

57,356�

47,318�

21.2�

165,487�

127,335�

30.0�

�

OTHER INCOME (EXPENSE):

Floorplan interest expense

(10,065)

(9,259)

8.7�

(34,943)

(27,998)

24.8�

Other interest expense, net

(5,366)

(4,344)

23.5�

(13,353)

(14,174)

(5.9)

Other income (expense), net

(122)

87�

(240.2)

(367)

95�

(486.3)

�

INCOME BEFORE INCOME TAXES

41,803�

33,802�

23.7�

116,824�

85,258�

37.0�

�

PROVISION FOR INCOME TAXES

15,383�

12,176�

26.3�

43,221�

31,143�

38.8�

�

INCOME BEFORE CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE

26,420�

21,626�

22.2�

73,603�

54,115�

36.0�

�

CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE, NET OF TAX BENEFIT OF $10,231

�

-�

(16,038)

N/A�

�

NET INCOME

$ 26,420�

$ 21,626�

22.2�

$ 73,603�

$ 38,077�

93.3�

�

DILUTED EARNINGS PER SHARE:

Income before cumulative effect of a change in accounting principle

$ 1.10�

$ 0.88�

25.0�

$ 3.01�

$ 2.24�

34.4�

Cumulative effect of a change in accounting principle

-�

(0.66)

-�

�

Net income

$ 1.10�

$ 0.88�

25.0�

$ 3.01�

$ 1.58�

90.5�

�

Weighted average diluted shares outstanding

24,009�

24,571�

(2.3)

24,432�

24,150�

1.2�

Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
						�
			September 30,	December 31,
			2006�	2005�	% Change�	�
			(Unaudited)
ASSETS:
						�
CURRENT ASSETS:
	Cash and cash equivalents		$ 34,857�	$ 37,695�	(7.5)	%
	Contracts in transit and vehicle receivables, net		145,667�	187,769�	(22.4)
	Accounts and notes receivable, net		71,170�	81,463�	(12.6)
	Inventories		769,965�	756,838�	1.7�
	Deferred income taxes		21,636�	18,780�	15.2�
	Prepaid expenses and other current assets		13,080�	23,283�	(43.8)	�
		Total current assets	1,056,375�	1,105,828�	(4.5)
PROPERTY AND EQUIPMENT, net			204,729�	161,317�	26.9�
GOODWILL			415,460�	372,844�	11.4�
INTANGIBLE FRANCHISE RIGHTS			233,889�	164,210�	42.4�
OTHER ASSETS			31,212�	29,419�	6.1�	�
		Total assets	$ 1,941,665�	$ 1,833,618�	5.9�	%
						�
LIABILITIES AND STOCKHOLDERS' EQUITY:
						�
CURRENT LIABILITIES:
	Floorplan notes payable - credit facility		$ 279,685�	$ 407,396�	(31.3)	%
	Floorplan notes payable - manufacturer affiliates		293,119�	316,189�	(7.3)
	Current maturities of long-term debt		823�	786�	4.7�
	Accounts payable		102,969�	124,857�	(17.5)
	Accrued expenses		110,725�	119,404�	(7.3)	�
		Total current liabilities	787,321�	968,632�	(18.7)
LONG-TERM DEBT, net of current maturities			428,641�	158,074�	171.2�
DEFERRED INCOME TAXES			1,315�	28,862�	(95.4)
OTHER LIABILITIES			25,505�	25,356�	0.6�	�
		Total liabilities before deferred revenues	1,242,782�	1,180,924�	5.2�	�
						�
DEFERRED REVENUES			21,632�	25,901�	(16.5)
						�
STOCKHOLDERS' EQUITY:
	Common stock		250�	246�	1.6�
	Additional paid-in capital		289,495�	276,904�	4.5�
	Retained earnings		436,732�	373,162�	17.0�
	Accumulated other comprehensive income (loss)		399�	(706)	(156.5)
	Deferred stock-based compensation		-�	(5,413)	(100.0)
	Treasury stock		(49,625)	(17,400)	185.2�	�
		Total stockholders' equity	677,251�	626,793�	8.1�	�
		Total liabilities and stockholders' equity	$ 1,941,665�	$ 1,833,618�	5.9�	%
						�
						�
BALANCE SHEET DATA:
	Working capital		$ 269,054�	$ 137,196�	96.1�	%
	Current ratio		1.34�	1.14�	17.5�
						�
	Long-term debt to capitalization		39%	20%
						�
	Inventory days supply: ⁽¹⁾
		New vehicle	55�	56�	(1.8)	%
		Used vehicle	29�	28�	3.6�
						�
⁽¹⁾ Inventory days supply equals units in inventory as of the end of the period, divided by unit sales for the month then ended, times 30 days.

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

�

Three Months

Ended

Nine Months

Ended

September 30,

�

September 30,

�

2006�

�

2005�

�

2006�

�

2005�

�

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:

Region

Geographic Market

Northeast

Massachusetts

12.7�

13.9�

12.9�

13.2�

New Hampshire

4.0�

0.5�

3.9�

0.2�

New Jersey

2.5�

2.9�

2.7�

2.9�

New York

2.2�

2.1�

2.4�

21.4�

19.4�

21.9�

18.7�

�

Southeast

Florida

4.6�

6.4�

4.8�

6.1�

Louisiana

4.5�

4.4�

5.4�

5.2�

Georgia

3.9�

5.3�

3.9�

4.9�

Mississippi

0.6�

-�

0.2�

-�

Alabama

0.4�

-�

0.1�

-�

14.0�

16.1�

14.4�

16.2�

�

Central

Southeast Texas

16.9�

14.0�

17.1�

14.5�

Oklahoma

11.2�

12.2�

10.8�

11.9�

Central Texas

10.4�

12.7�

10.9�

12.3�

West Texas

5.6�

5.7�

5.6�

New Mexico

2.3�

2.5�

2.1�

2.7�

Colorado

0.1�

0.7�

0.3�

0.9�

46.5�

47.8�

46.9�

47.9�

�

West

California

18.1�

16.7�

16.8�

17.2�

100.0�

�

NEW VEHICLE UNIT SALES BRAND MIX:

Toyota/Scion/Lexus

37.8�

28.6�

35.8�

28.6�

Ford

15.4�

19.7�

16.1�

18.8�

DaimlerChrysler

11.8�

15.6�

12.8�

15.0�

Nissan/Infiniti

11.5�

10.7�

11.2�

Honda/Acura

9.7�

9.6�

9.7�

9.4�

7.7�

8.9�

8.1�

10.1�

Other

6.1�

�

6.9�

�

6.8�

�

6.9�

�

100.0�

�

NEW VEHICLE UNIT OTHER MIX:

Import

54.7�

45.8�

52.0�

46.1�

Domestic

29.6�

39.2�

31.6�

38.5�

Luxury

15.7�

�

15.0�

�

16.4�

�

15.4�

�

100.0�

�

Car

49.9�

46.3�

49.4�

45.8�

Truck

50.1�

�

53.7�

�

50.6�

�

54.2�

�

100.0�

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)

�

Three Months Ended September 30,

Nine Months Ended September 30,

2006�

�

2005�

�

% Change�

�

2006�

�

2005�

�

% Change�

REVENUES:

New vehicle retail sales

$ 1,009,300�

$ 977,492�

3.3�

$ 2,837,827�

$ 2,791,812�

1.6�

Used vehicle retail sales

292,931�

279,484�

4.8�

848,611�

819,816�

3.5�

Used vehicle wholesale sales

83,264�

�

98,439�

�

(15.4)

�

251,010�

�

301,419�

�

(16.7)

�

Total used

376,195�

377,923�

(0.5)

1,099,621�

1,121,235�

(1.9)

Parts and service

165,296�

165,017�

0.2�

492,803�

487,534�

1.1�

Finance and insurance

51,021�

�

49,737�

�

2.6�

�

146,172�

�

143,648�

�

1.8�

�

Total

$ 1,601,812�

$ 1,570,169�

2.0�

$ 4,576,423�

$ 4,544,229�

0.7�

�

GROSS MARGIN:

New vehicle retail sales

7.1�

7.3�

7.1�

Used vehicle retail sales

13.1�

12.8�

13.0�

12.7�

Used vehicle wholesale sales

(1.8)

�

(1.8)

�

(0.5)

�

(0.8)

�

Total used

9.8�

9.0�

9.9�

9.1�

Parts and service

54.7�

54.4�

54.5�

54.4�

Finance and insurance

100.0�

�

100.0�

�

100.0�

�

100.0�

�

Total

15.6�

15.5�

16.0�

15.6�

�

GROSS PROFIT:

New vehicle retail sales

$ 71,671�

$ 69,761�

2.7�

$ 206,497�

$ 197,433�

4.6�

Used vehicle retail sales

38,283�

35,728�

7.2�

110,451�

103,838�

6.4�

Used vehicle wholesale sales

(1,493)

�

(1,809)

�

17.5�

�

(1,244)

�

(2,283)

�

45.5�

�

Total used

36,790�

33,919�

8.5�

109,207�

101,555�

7.5�

Parts and service

90,366�

89,701�

0.7�

268,458�

265,061�

1.3�

Finance and insurance

51,021�

�

49,737�

�

2.6�

�

146,172�

�

143,648�

�

1.8�

�

Total

$ 249,848�

$ 243,118�

2.8�

$ 730,334�

$ 707,697�

3.2�

�

UNITS SOLD:

Retail new vehicles sold

35,182�

34,355�

2.4�

97,593�

96,909�

0.7�

Retail used vehicles sold

18,064�

17,826�

1.3�

51,876�

52,509�

(1.2)

Wholesale used vehicles sold

12,211�

�

13,832�

�

(11.7)

�

34,623�

�

39,520�

�

(12.4)

�

Total used

30,275�

31,658�

(4.4)

86,499�

92,029�

(6.0)

�

GROSS PROFIT PER UNIT SOLD:

New vehicle retail sales

$ 2,037�

$ 2,031�

0.3�

$ 2,116�

$ 2,037�

3.9�

Used vehicle retail sales

2,119�

2,004�

5.7�

2,129�

1,978�

7.6�

Used vehicle wholesale sales

(122)

(131)

6.9�

(36)

(58)

37.9�

Total used

1,215�

1,071�

13.4�

1,263�

1,104�

14.4�

Finance and insurance (per retail unit)

958�

953�

0.5�

978�

961�

1.8�

�

OTHER:

SG&A expenses

$ 188,043�

$ 186,216�

1.0�

$ 551,463�

$ 560,853�

(1.7)

SG&A as % revenues

11.7�

11.9�

12.1�

12.3�

SG&A as % gross profit

75.3�

76.6�

75.5�

79.3�

Operating margin

3.6�

3.0�

3.6�

2.8�

Pretax income margin

2.6�

2.2�

2.6�

1.9�

�

Floorplan interest

$ (10,065)

$ (9,259)

8.7�

$ (34,943)

$ (27,998)

24.8�

Floorplan assistance

10,365�

�

9,691�

�

7.0�

�

28,527�

�

27,527�

�

3.6�

�

Net floorplan (expense) income

$ 300�

$ 432�

(30.6)

$ (6,416)

$ (471)

1,262.2�

Group 1 Automotive, Inc.

Additional Information - Same Store⁽¹⁾

(Unaudited)

(Dollars in thousands, except per unit amounts)

�

Three Months Ended September 30,

Nine Months Ended September 30,

�

2006�

�

2005�

�

% Change�

2006�

�

2005�

�

% Change�

�

REVENUES:

New vehicle retail sales

$ 943,383�

$ 944,298�

(0.1)

$ 2,700,516�

$ 2,711,452�

(0.4)

Used vehicle retail sales

279,540�

266,494�

4.9�

819,771�

789,118�

3.9�

Used vehicle wholesale sales

78,394�

�

92,824�

�

(15.5)

�

239,024�

�

287,778�

�

(16.9)

�

Total used

357,934�

359,318�

(0.4)

1,058,795�

1,076,896�

(1.7)

Parts and service

158,437�

156,109�

1.5�

479,079�

468,316�

2.3�

Finance and insurance

47,998�

�

48,060�

�

(0.1)

�

140,438�

�

139,298�

�

0.8�

�

Total

$ 1,507,752�

$ 1,507,785�

(0.0)

$ 4,378,828�

$ 4,395,962�

(0.4)

�

GROSS MARGIN:

New vehicle retail sales

7.1�

7.3�

7.1�

Used vehicle retail sales

13.0�

12.8�

13.1�

12.7�

Used vehicle wholesale sales

(2.1)

�

(1.5)

�

(0.6)

�

(0.6)

�

Total used

9.7�

9.1�

10.0�

9.1�

Parts and service

54.7�

54.6�

54.4�

54.5�

Finance and insurance

100.0�

�

100.0�

�

100.0�

�

100.0�

�

Total

15.7�

15.5�

16.1�

15.6�

�

GROSS PROFIT:

New vehicle retail sales

$ 67,050�

$ 67,514�

(0.7)

$ 196,879�

$ 192,746�

2.1�

Used vehicle retail sales

36,382�

34,227�

6.3�

107,029�

99,986�

7.0�

Used vehicle wholesale sales

(1,654)

�

(1,365)

�

(21.2)

�

(1,469)

�

(1,593)

�

7.8�

�

Total used

34,728�

32,862�

5.7�

105,560�

98,393�

7.3�

Parts and service

86,600�

85,263�

1.6�

260,532�

255,115�

2.1�

Finance and insurance

47,998�

�

48,060�

�

(0.1)

�

140,438�

�

139,298�

�

0.8�

�

Total

$ 236,376�

$ 233,699�

1.1�

$ 703,409�

$ 685,552�

2.6�

�

UNITS SOLD:

Retail new vehicles sold

32,515�

33,077�

(1.7)

92,416�

93,878�

(1.6)

Retail used vehicles sold

17,242�

16,942�

1.8�

50,310�

50,410�

(0.2)

Wholesale used vehicles sold

11,363�

�

12,991�

�

(12.5)

�

32,740�

�

37,483�

�

(12.7)

�

Total used

28,605�

29,933�

(4.4)

83,050�

87,893�

(5.5)

�

GROSS PROFIT PER UNIT SOLD:

New vehicle retail sales

$ 2,062�

$ 2,041�

1.0�

$ 2,130�

$ 2,053�

3.8�

Used vehicle retail sales

2,110�

2,020�

4.5�

2,127�

1,983�

7.3�

Used vehicle wholesale sales

(146)

(105)

(39.0)

(45)

(42)

(7.1)

Total used

1,214�

1,098�

10.6�

1,271�

1,119�

13.6�

Finance and insurance (per retail unit)

965�

961�

0.4�

984�

965�

2.0�

�

OTHER:

SG&A expenses

$ 178,866�

$ 172,649�

3.6�

$ 536,877�

$ 533,791�

0.6�

SG&A as % revenues

11.9�

11.5�

12.3�

12.1�

SG&A as % gross profit

75.7�

73.9�

76.3�

77.9�

Operating margin

3.5�

3.8�

3.5�

3.1�

�

Floorplan interest

$ (9,397)

$ (8,644)

8.7�

$ (33,487)

$ (26,519)

26.3�

Floorplan assistance

9,799�

�

9,294�

�

5.4�

�

27,363�

�

26,553�

�

3.1�

�

Net floorplan (expense) income

$ 402�

$ 650�

(38.2)

$ (6,124)

$ 34�

(18,111.8)

�

⁽¹⁾Same store amounts include the results for the identical months in each period presented in the comparison, commencing with the first month we owned the dealership and, in the case of dispositions, ending with the last month we owned it. Same store results also include the activities of the corporate office, but exclude the results of our two New Orleans dealerships that were closed as a result of Hurricane Katrina in August of 2005.