Record rebound at Dealer LAB: 76 units sold in April

Publish Date: 
Jun 19, 2014
By Joe Delmont

PUNTA GORDA, Fla. -- April was a huge turnaround month for Destination Powersports as the dealership sold a record 76 new and pre-owned units and posted a net income of $19,485.

By comparison, the dealership lost $13,945 in the first three months of the year, including $12,290 in March. It sold 136 units for the entire first quarter. The dealership earned $14,569 and sold 47 new and pre-owned units in April 2013, at its previous location.

Total revenue for April hit $736,117, an increase of more than $270,000 from April 2013 and a gain of more than $260,000 over March 2014. For the first quarter, the dealership had revenues of $616,000.

Why the big change? “It’s all people,” said owner Bill Shenk, referring to several new hires made this spring. “But we’re still not on our A game yet.”

The dealership posted revenue gains in all five departments compared to April of last year. Unit sales revenue was up, $599,324 compared to $362,613; F&I net revenue increased to $29,465 compared to $16,869; parts revenue increased to $36,123 compared to $24,391; accessories revenue climbed to $35,223 from $29,778; and service revenue increased to $35,982 from $30,074.

The strong performance in April helped the dealership reduce its year-over-year gap, but it still significantly trails last year. For the first four months of 2013, the dealership earned $125,713 on total revenues of $2.18 million. This year, through April, the dealership has earned $5,540 on total revenues of $2.16 million. Gross profit for the year is down $97,034, or 17.5 percent, to $455,932 from $552,966.

It will be difficult to make up for the poor performance endured during the first quarter, but there is some reason for optimism, Shenk noted. The dealership’s best motorcycle sales months are October through June; PWC, April through August, and ATV, October through March.

“What’s gone is gone,” Shenk said. “All we can do is keep moving ahead.”

Continued