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AutoNation Service/Parts/Collision Gross Profit Up 8.8%

Service, parts and collision revenue rose $36.70 million, or 6.1 percent, to $636.60 million for AutoNation Inc. in the first quarter of 2013. Same-store service, parts and collision revenue increased $23.30 million, or 3.9 percent, to $632.20 million. Gross profit grew $22.10 million, or 8.8 percent, to $272.30 million.

It’s worth noting that the quarter had two fewer selling days than the year prior. So, when adjusted for days, service, parts and collision same-store revenue would have been up 7 percent and gross would have been up 10 percent.

President and Chief Operating Officer Mike Maroone said in an April conference call that AutoNation’s Customer Care business (service, parts and collision) posted solid growth across the board — in customer-pay, warranty, internal, wholesale parts and collision — for both revenue and gross. “We also recorded our highest overall Customer Care margin in nearly two years at 42.8 percent — a 110-basis-point improvement on a total store basis,” he told analysts on the call.

“In the quarter, we noted impressive year-over-year increases in warranty gross of 15 percent, internal gross of 12 percent and customer-pay gross of 4 percent. This marks the 11th consecutive quarterly increase in customer-pay gross,” Maroone added. “We are very pleased with this performance, especially given the fact that the industry units in operation are just now bottoming out and the service base will start to grow again this year. We believe that the focus by our Customer Care team on operational excellence, margin improvement, and driving sales effectiveness delivered very strong results and positions us well moving forward.”

Fort Lauderdale, FL-based AutoNation owns and operates 262 new vehicle franchises, which sell 32 new vehicle brands across 15 states. The company is billed as America’s largest automotive retailer.

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