AutoNation 2005 Annual Report Download - page 32

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Table of Contents
Finance and Insurance
Years Ended December 31,
2005 vs. 2004 2004 vs. 2003
Variance Variance
Favorable/ Favorable/
2005 2004 (Unfavorable) % Variance 2003 (Unfavorable) % Variance
($ in millions, except per vehicle data)
Reported:
Revenue and gross profit $615.6 $608.7 $ 6.9 1.1 $578.7 $ 30.0 5.2
Gross profit per vehicle retailed $ 982 $ 956 $ 26 2.7 $ 919 $ 37 4.0
Same Store:
Revenue and gross profit $ 611.9 $608.7 $ 3.2 .5
Gross profit per vehicle retailed $ 983 $ 956 $ 27 2.8
Reported finance and insurance revenue and gross profit benefited from the impact of acquisitions and divestitures when compared to
same store performance.
Same store finance and insurance revenue and gross profit increased slightly in 2005 compared to 2004. The improvement was driven
by increased retrospective commissions received on extended service contracts partially offset by decreased new and used vehicle sales,
which were caused in part due to the effects of Hurricane Wilma on our Florida stores. Improvements were also driven by our continued
emphasis on training store associates. Substantially higher interest rates in the future may negatively impact finance and insurance revenue
and gross profit.
Finance and insurance revenue and gross profit increased for 2004 due to increased vehicle revenue, product penetration and
retrospective commissions received on extended service contracts. Additionally, our improvement has been driven by our ongoing
concentration on our underperforming stores and our transparent sales process that is supported by the “AutoNation Pledge.” The
“AutoNation Pledge” is our commitment to provide our customers with disclosures relating to the finance and insurance sales process.
Finance and insurance revenue and gross profit were also impacted by the effect of the four major hurricanes on our stores in Florida and the
Southeast during the third quarter of 2004. During the fourth quarter of 2004, we saw improvements in these markets driven by post-
hurricane demand and a stronger local economy.
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