OCTOBER PERFORMANCE for the Dealer LAB dealership, Destination Powersports in Punta Gorda, Fla., rebounded from a bad September and increased almost $20,000 over the previous month. However, Net Income was still off when compared to October 2011, by about $3,600.
For the month, Net Income was $8,995 on total revenues of $447,264, down from a Net Income of $12,606 on total revenues of $391,486 in October 2011.
Net Income for the first 10 months of 2012 was $124,688, down almost $40,000, or 24 percent, for the same period in 2011. Total revenues through October 2012 were $4.7 million, up 14.6 percent from $4.1 million through October 2011.
Unit sales for the month were down compared to October 2011: 34 versus 40. But unit sales Year-to-Date continued ahead of last year: 474 versus 383. The big difference in October was used motorcycle sales, which were off five units from last year — 11 units compared to 16 units.
The good news is that unit gross profit was up from $34,277 in October 2011 to $51,665 this year. At the same time, F&I income also increased from $12,472 to $14,002.
“Motorcycle sales continue to be strong,” Shenk says. “For the brands we sell, new and used sold in our market area was 14. We sold 12 of those, and we sold 18 total in Florida, plus another six to out-of-state addresses (snow birds who have homes in Florida) for a total of 24 vs. 14 — well over the 100 percent of market area target.”
New and used unit sales were flat compared to September at 34 units.
Revenue in Accessories and Service continued to be soft in October, but early indications were that they were picking up in November. “As of the middle of November,” Shenk says, “Parts and Service are back on track … above Top Gun and on payroll budget.” He also added another capable Parts employee at the end of November.
Sales revenue for October was up by 16 percent, climbing from $293,656 in October 2011 to $340,680 this year. F&I revenue was up about $1,500, and Parts revenue almost doubled that of October 2011, climbing from $21,344 to $40,622. (continued)