Group 1 Automotive reported solid fourth-quarter results for its parts and service business. Gross profit increased 8.6 percent to $115.19 million as revenue grew 8.3 percent to $221.67 million. Same-store parts and service revenue increased 4.3 percent to $210.57 million.
The overall revenue increase breaks down as growth of 11.7 percent in warranty work, 7.7 percent in collision, 5.7 percent in parts wholesale and 0.1 percent in customer-pay. It should be noted that manufacturer free maintenance programs, such as Toyota Care, have shifted what once was classified as customer-pay revenue over to the warranty segment, partially explaining the relative underperformance of customer-pay.
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