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Penske Reports 8.6% Rise In Same-Store Service & Parts Gross Profit

The Penske Automotive Group (Bloomfield Hills, MI) saw its service and parts revenue rise $24.60 million, or 7.1 percent, to $372.03 million in the third quarter of 2012. Management attributed the revenue growth to an $18.30 million increase from net dealership acquisitions, coupled with a $6.30 million, or 1.9 percent, increase in same-store revenue.

The increase in same-store revenue came from a $2.80 million, or 1.1 percent, increase in customer-pay revenue; a $1.80 million, or 2.8 percent, increase in warranty revenue; a $1.30 million, or 36 percent, increase in vehicle preparation revenue; and a $400,000, or 1.4 percent, increase in body shop revenue.

Penske’s service and parts gross profit rose $17.10 million, or 8.6 percent, to $215.10 million. Management attributed the growth in gross profit to a $9.50-million increase from net dealership acquisitions, along with a $7.60 million, or 4 percent, increase in same-store gross profit during the period.

The same-store gross profit increase came from the aforementioned $6.30 million, or 1.9 percent, rise in same-store revenues (which increased gross profit by $3.70 million), coupled with a 0.8-percent increase in gross margin, which increased gross profit by $3.90 million. The same-store gross profit increase is composed of a $5.50 million, or 21 percent, uptick in vehicle preparation gross profit; a $1.30 million, or 1.1 percent, increase in customer-pay gross profit; a $600,000, or 1.7 percent, rise in warranty gross profit; and a $200,000, or 1.2 percent, increase in body shop gross profit.

Penske operates 341 retail automotive franchises, representing 40 different brands, as well as 30 collision repair centers. The company has 171 franchises in 17 states and Puerto Rico, as well as 170 franchises located outside the United States, primarily in the United Kingdom.

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