Group 1 Automotive Inc (GPI) 2008 Q3 法說會逐字稿

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Group 1 Automotive third quarter earnings conference call. During today's presentation, all parties will be in a listen only mode; following the presentation, the conference will be open for questions. (OPERATOR INSTRUCTIONS). This conference is being recorded today, October 28, 2008.

早上好，女士們，先生們，感謝你們的支持。歡迎參加 Group 1 Automotive 第三季度收益電話會議。在今天的演講中，各方都將處於只聽模式；介紹結束後，會議將開放提問。（操作員說明）。今天，即 2008 年 10 月 28 日，對本次會議進行了記錄。

I would now like to turn the conference over to Pete DeLongchamps, Vice President of Manufacturer Relations. Please go ahead, sir.

我現在想將會議轉交給製造商關係副總裁 Pete DeLongchamps。請繼續，先生。

Thank you, Mikayla, and good morning, everyone. And welcome to the Group 1 Automotive's 2008 third quarter conference call. Before we begin, I'd like to make some brief remarks about forward-looking statements, and the use of non-GAAP financial measures. Except for historical information mentioned during the call, statements made by management of Group 1 are forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve both known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include but are not limited to risks associated with pricing volume and the conditions of the market. Those and other risks are described in the Company's filings with the SEC over the last 12 months. Copies of these filings are available from both the SEC and the Company.

謝謝 Mikayla，大家早上好。歡迎參加 Group 1 Automotive 的 2008 年第三季度電話會議。在我們開始之前，我想就前瞻性陳述和非 GAAP 財務指標的使用做一些簡短的評論。除了電話會議中提到的歷史信息外，第 1 組管理層的聲明是根據 1995 年《私人證券訴訟改革法案》的安全港條款作出的前瞻性聲明。前瞻性陳述涉及已知和未知的風險和不確定性，可能導致公司未來期間的實際結果與預測結果存在重大差異。這些風險包括但不限於與定價量和市場條件相關的風險。公司在過去 12 個月向美國證券交易委員會提交的文件中描述了這些風險和其他風險。這些文件的副本可從 SEC 和公司獲得。

In addition, certain non-GAAP financial measures as defined on the SEC rules may be discussed on this call. As required by applicable SEC rules, the Company provides reconciliations to any such non-GAAP financial measures, including the most direct comparable GAAP measures on its website. I would now like to turn the call over to our President and CEO, Mr. Earl Hesterberg. Earl?

此外，本次電話會議可能會討論 SEC 規則中定義的某些非 GAAP 財務措施。根據適用的 SEC 規則的要求，公司提供任何此類非 GAAP 財務措施的調節，包括其網站上最直接的可比 GAAP 措施。我現在想把電話轉給我們的總裁兼首席執行官，先生。赫斯特伯格伯爵。伯爵？

Thank you, Pete, and good morning, everyone. In a moment, I'll turn the call over to our CFO, John Rickel, who will provide Group 1's detailed financial results. After he is finished, I will address guidance and then open up the call for questions.

謝謝皮特，大家早上好。稍後，我會將電話轉給我們的首席財務官 John Rickel，他將提供第 1 組的詳細財務結果。在他完成後，我將進行指導，然後打開問題電話。

Before I turn the call over to John, let me begin by telling you what we observed during the quarter. Third quarter started off looking like a continuation of the second quarter, with the challenging but manageable overall selling environment. Then came September. First, Hurricane Gustav made its way toward the New Orleans area, leading to mass evacuations that resulted in more than a one week loss of business, including the typically busy Labor Day weekend. Then on September 13th, Hurricane Ike descended on the Houston metropolitan area. Evacuations began on the 10th, with most businesses shutting down on the 12th in preparation for the storm. Even though our team was able to get all 9 of the Houston area stores up and running by September 17, and the five Beaumont stores back in business a couple of days later, the public was not out shopping for vehicles again until late in the month, due to power outages, gasoline shortages, and traffic issues.

在我把電話轉給約翰之前，讓我先告訴你我們在本季度觀察到的情況。第三季度開始時看起來像是第二季度的延續，整體銷售環境充滿挑戰但可控。然後是九月。首先，古斯塔夫颶風向新奧爾良地區襲來，導致大規模疏散，造成超過一周的業務損失，包括通常繁忙的勞動節週末。然後在 9 月 13 日，颶風艾克襲擊了休斯頓市區。疏散工作於 10 日開始，大多數企業於 12 日關閉，為風暴做準備。儘管我們的團隊能夠在 9 月 17 日之前讓休斯頓地區的所有 9 家商店恢復正常運營，並且在幾天后博蒙特的 5 家商店恢復營業，但公眾直到月底才再次外出購買車輛，由於停電、汽油短缺和交通問題。

Houston and Beaumont stores account for approximately 20% of Group 1's revenues, and an even larger percentage of our profits. We estimate that the two weeks worth of business we lost as a result of this storm's effects negatively impacted our earnings by approximately $0.15 per diluted share for the quarter.

休斯頓和博蒙特商店約佔 Group 1 收入的 20%，占我們利潤的比例更大。我們估計，由於這場風暴的影響，我們損失了兩週的業務，對本季度攤薄後每股收益產生了約 0.15 美元的負面影響。

I want to take this opportunity to thank our people for the outstanding job they did, in getting us back in business so quickly. The level of dedication showed continues to demonstrate the quality of our most important asset, our employees. In addition to the impact of two hurricanes and the already challenged automotive selling environment, conditions worsened when the country became focused on the financial crisis that began unfolding in mid-September. The uncertainty this has created has significantly reduced consumer confidence and negatively impacted customer traffic in our dealership showrooms.

我想藉此機會感謝我們的員工所做的出色工作，讓我們如此迅速地恢復業務。表現出的奉獻水平繼續證明我們最重要的資產——我們的員工的素質。除了兩次颶風的影響和已經充滿挑戰的汽車銷售環境外，當該國開始關注 9 月中旬開始出現的金融危機時，情況進一步惡化。這造成的不確定性大大降低了消費者的信心，並對我們經銷商展廳的客流量產生了負面影響。

In addition, we have also seen lenders further tighten credit standards. For the majority of customers we are seeing, we are still able to get loans placed; however, we are seeing some level of lender turn downs, higher down payment requirements for most customers due to reduced loan to value ratios, and increased interest rates that are leading some customers to reject the financing offered. One of the positive things that occurred over the last few weeks is the gas prices have fallen to under $3 a gallon. This along with increased manufacturing incentives has helped improve sales of new and used trucks and SUVs. The major shift in car versus truck sales that we had been observing is beginning to stabilize. For the third quarter, 56% of our new vehicle units sales were cars. This is up slightly from last year's 55% but is down from 62% in the second quarter.

此外，我們還看到貸方進一步收緊信貸標準。對於我們看到的大多數客戶，我們仍然能夠獲得貸款；然而，我們看到貸款人在一定程度上拒絕了貸款，由於貸款與價值比率降低，大多數客戶的首付要求更高，利率上升導致一些客戶拒絕提供的融資。過去幾週發生的積極事情之一是汽油價格已降至每加侖 3 美元以下。這與增加製造激勵措施一起幫助提高了新舊卡車和 SUV 的銷量。我們一直觀察到的汽車與卡車銷售的重大轉變開始趨於穩定。第三季度，我們 56% 的新車銷量是汽車。這比去年的 55% 略有上升，但低於第二季度的 62%。

It appears that the recent economic crisis will impact virtually all of the United States; however, so far, in October, we are seeing business return to near pre-storm levels in Houston, but we do not anticipate a large replacement spike like we saw following Hurricane Katrina, as significantly fewer vehicles appear to have been destroyed in this storm. You recall we mentioned on the second quarter call that we were hopeful that California had begun to stabilize, but with the increased credit pressures, that reversed and traffic continued to soften this quarter. One of the bright spots this quarter was our Parts and Service business, which continued to show positive same-store growth. This is a key part of the auto retailing model, and an area that has held up well in prior slowdowns, though the continued positive performance reinforces our confidence in the business model. We've put a lot of time and effort in improving efficiencies and capacity in our Parts and Service business, particularly since the gross profit generated here covers approximately 70 to 80% of our total fixed costs.

看來最近的經濟危機幾乎會影響整個美國；然而，到目前為止，在 10 月，我們看到休斯敦的業務恢復到接近風暴前的水平，但我們預計不會像卡特里娜颶風後那樣出現大量更換高峰，因為在這場風暴中被摧毀的車輛似乎明顯減少.您還記得我們在第二季度電話會議上提到我們希望加利福尼亞州已經開始穩定下來，但是隨著信貸壓力的增加，這種情況發生了逆轉，本季度交通繼續疲軟。本季度的亮點之一是我們的零件和服務業務，該業務繼續顯示同店增長。這是汽車零售模式的關鍵部分，並且在之前的放緩中表現良好，儘管持續的積極表現增強了我們對商業模式的信心。我們投入了大量時間和精力來提高我們零件和服務業務的效率和產能，特別是因為這裡產生的毛利潤占我們總固定成本的大約 70% 到 80%。

Our new Parts and Service facility in Beverly Hills Mercedes-Benz, which gives us 108 service bays at that site, and our new collision center with 9 paint booths for 3 of our Sterling Car Dealerships here in Houston, came on stream during the quarter. We have several similar investments which will provide more capacity later this year or early next year. Third quarter total parts and service sales increased 6.9% with a 1.1% increase on a same-store basis. We estimate the hurricane impact reduced these same-store revenue results by more than a full percentage point. Gross profit was up 2.3% as we experienced improvements in all areas of this business.

我們在比佛利山梅賽德斯-奔馳的新零件和服務設施在該站點為我們提供了 108 個服務區，而我們在休斯頓的 3 家 Sterling 汽車經銷商的新碰撞中心和 9 個噴漆間在本季度投入使用。我們有幾項類似的投資，將在今年晚些時候或明年初提供更多產能。第三季度零部件和服務總銷售額增長 6.9%，同店增長 1.1%。我們估計颶風的影響使這些同店收入結果減少了一個多百分點。由於我們在該業務的所有領域都取得了進步，因此毛利潤增長了 2.3%。

Another area of focus has been our Finance and Insurance business. The improvements we have made continue to grow our profit for retail unit, which increased $27 from the same period a year ago, to $1,066 per unit. With the exception of our Parts and Service business, it is clear that our revenues have and will in the near term decrease substantially. Therefore, since October 1st, we have implemented additional significant cost cuts in our ongoing operating structure. On an annual basis going forward, we expect these actions to generate approximately $35 million in savings. John will comment further on these actions.

另一個重點領域是我們的金融和保險業務。我們所做的改進繼續增加了零售單位的利潤，與去年同期相比增加了 27 美元，達到每單位 1,066 美元。除了我們的零件和服務業務外，很明顯我們的收入已經並將在短期內大幅下降。因此，自 10 月 1 日起，我們在現有運營結構中實施了額外的大幅成本削減。在未來的年度基礎上，我們預計這些行動將產生大約 3500 萬美元的節省。約翰將進一步評論這些行動。

Now let's turn to inventories. As I said, the hurricane significantly impacted our September unit sales, so our new vehicle day supply numbers are not meaningful. I will focus instead on absolute levels. On a unit basis, we saw substantial improvements from the second quarter in our domestic and luxury inventories, as well as in our truck inventory, with total inventory decreasing 1,157 units, or about $67 million from our June 30th, 2008 levels. Compared to the third quarter of 2007, we improved our domestic inventory by about 8%. Our inventory mix improved as well with cars accounting for 44% of the units, and trucks at 56% of inventory, which is down from 63% at the end of the second quarter, 2008. I did want to note that our Ford and Dodge pick-up truck inventory is well-positioned to begin receiving the new 2009 F-150 and Ram models, respectively. Noting our used vehicle inventory, our supply of used vehicles at quarter end stood at 31-day supply, with a good balance between car and truck mix. We are satisfied with this level as we head into the fourth quarter.

現在讓我們轉向庫存。正如我所說，颶風嚴重影響了我們 9 月份的銷量，因此我們的新車日供應量數字沒有意義。我將專注於絕對水平。在單位基礎上，我們看到我們的國內和豪華庫存以及我們的卡車庫存比第二季度有了顯著改善，總庫存比 2008 年 6 月 30 日的水平減少了 1,157 輛，或約 6,700 萬美元。與 2007 年第三季度相比，我們的國內庫存提高了約 8%。我們的庫存組合也有所改善，汽車佔庫存的 44%，卡車佔庫存的 56%，低於 2008 年第二季度末的 63%。我確實想指出，我們的福特和道奇皮卡車庫存處於有利位置，可以分別開始接收新的 2009 F-150 和 Ram 車型。注意到我們的二手車庫存，我們在季度末的二手車供應量為 31 天供應量，汽車和卡車的組合達到了良好的平衡。當我們進入第四季度時，我們對這個水平感到滿意。

Turning to third quarter brand mix, Honda, Nissan, BMW and Mercedes-Benz all increased their share of our new vehicle unit sales. Toyota, Scion, and Lexus accounted for 34% of our sales, followed by Honda Acura with 15%, and Nissan with 14%. Ford came in fourth at 10% of our new vehicle unit sales, falling from 13% in the third quarter of 2007. Rounding out the mix was BMW/Mini with 9%, Mercedes-Benz with 6%, and Chrysler and GM each accounting for 5% of our new vehicle unit sales. Import brands held steady at 57% of our unit sales from the prior year period while luxury brand sales grew 560 basis points to account for 25% of our new vehicle unit sales. In total, import and luxury brands contributed 82% of our unit sales, at the end of the third quarter, 2008, with domestics accounting for 18%.

談到第三季度的品牌組合，本田、日產、寶馬和梅賽德斯-奔馳都增加了他們在我們新車銷量中的份額。豐田、Scion 和雷克薩斯占我們銷售額的 34%，其次是本田謳歌，佔 15%，日產佔 14%。福特以 10% 的新車銷量排名第四，低於 2007 年第三季度的 13%。最後是寶馬/Mini，佔 9%，梅賽德斯-奔馳佔 6%，克萊斯勒和通用汽車各占我們新車銷量的 5%。與去年同期相比，進口品牌穩定在我們單位銷售額的 57%，而豪華品牌銷售額增長 560 個基點，占我們新車單位銷售額的 25%。截至 2008 年第三季度末，進口和奢侈品牌總共貢獻了我們單位銷售額的 82%，而國產品牌佔 18%。

Now let me update you on our corporate development activities. During the third quarter, we disposed of five franchises with 12 month annual revenues of $17.7 million. These dispositions include four domestic franchises that we disposed of in late July, and a Volkswagen franchise in Kansas that we terminated on August 31st. We did not complete any acquisitions during the third quarter, but during the first half of the year, we did acquire five franchises with $90.2 million in estimated annual revenues. Given the current environment, we do not expect to complete any additional acquisitions during the remainder of the year. We will continue to review opportunities as they are presented to us, but will only pursue those that fit our stringent criteria and add value for our shareholders. I will now ask John to go over our financial results in more detail.

現在讓我向您介紹我們公司發展活動的最新情況。在第三季度，我們出售了五個特許經營權，12 個月的年收入為 1770 萬美元。這些處置包括我們在 7 月下旬處置的四個國內特許經營權，以及我們在 8 月 31 日終止的堪薩斯州大眾汽車特許經營權。我們在第三季度沒有完成任何收購，但在今年上半年，我們確實收購了五個特許經營權，估計年收入為 9020 萬美元。鑑於目前的環境，我們預計在今年剩餘時間內不會完成任何額外的收購。我們將繼續審查提供給我們的機會，但只會追求那些符合我們嚴格標準並為我們的股東增加價值的機會。我現在請約翰更詳細地檢查一下我們的財務結果。

Thank you, Earl, and good morning, everyone. For the third quarter, 2008, our net income from continuing operations was $9.4 million, or $0.42 per diluted share excluding the impact of the asset impairment charges, lease terminations and bond redemption gains recognized during the quarter. On a comparable basis, net income from continuing operations decreased 57.3% from $22.1 million in the third quarter a year ago, and earnings per diluted share were down $55.8% from $0.95 per diluted share.

謝謝你，厄爾，大家早上好。對於 2008 年第三季度，我們的持續經營淨收入為 940 萬美元，或每股攤薄收益 0.42 美元，不包括本季度確認的資產減值費用、租賃終止和債券贖回收益的影響。在可比基礎上，來自持續經營業務的淨收入較去年同期的 2210 萬美元下降了 57.3%，而每股攤薄收益較去年同期的 0.95 美元下降了 55.8%。

As we indicated in our press release on October 10, 2008, results for this quarter were negatively impacted by Hurricanes Gustav and Ike, which made landfall near New Orleans, Louisiana, on September 1, and near Houston, Texas on September 13th, 2008, respectively. We estimate that the impact on the quarter of the business lost as a result of these storms was approximately $0.15 per diluted share outstanding. In addition, in reviewing the third quarter, we identified triggering events indicating a potential impairment of our indefinite live intangible assets, in other words, goodwill and franchise rights, which required us to perform an interim valuation of the book value of these assets compared to their estimated fair market value. In addition, impairment triggers were also identified relative to certain other assets, causing us to evaluate their carrying values as well. As a result, we recognized a $30.2 million after-tax impairment charge during third quarter 2008, primarily related to a write down of our domestic brand franchise valuations as well as real estate associated with some domestic franchise terminations.

正如我們在 2008 年 10 月 10 日的新聞稿中指出的那樣，本季度的業績受到颶風古斯塔夫和艾克的負面影響，颶風於 9 月 1 日在路易斯安那州新奧爾良附近登陸，並於 2008 年 9 月 13 日在德克薩斯州休斯頓附近登陸，分別。我們估計，這些風暴對本季度業務損失的影響約為每股攤薄流通股 0.15 美元。此外，在審查第三季度時，我們發現觸發事件表明我們的無限期無形資產（換句話說，商譽和特許經營權）可能發生減值，這要求我們對這些資產的賬面價值進行中期估值，與他們估計的公平市場價值。此外，還確定了與某些其他資產相關的減值觸發因素，使我們也評估了它們的賬面價值。因此，我們在 2008 年第三季度確認了 3020 萬美元的稅後減值費用，主要與我們的國內品牌特許經營估值減記以及與一些國內特許經營終止相關的房地產有關。

We did not identify an impairment of our recorded goodwill. Including the impact of these noncash impairments, we realized a $20.6 million net loss for the quarter, or $0.91 per diluted share. Our third quarter consolidated revenues declined $191.4 million, or 11.8%, of $1.4 billion, compared to the same period a year ago. Our new vehicle business declined $145.4 million or 14.2%. In addition, our used vehicle retail and wholesale sales declined $26 million and $26.2 million respectively, while revenues from our financial and insurance business decreased $6 million, reflecting the impact of lower new and used retail volumes.

我們沒有發現我們記錄的商譽減值。包括這些非現金減值的影響，我們在本季度實現了 2060 萬美元的淨虧損，即每股攤薄虧損 0.91 美元。與去年同期相比，我們第三季度的合併收入為 14 億美元，下降了 1.914 億美元，即 11.8%。我們的新車業務下降了 1.454 億美元或 14.2%。此外，我們的二手車零售和批發銷售額分別下降了 2600 萬美元和 2620 萬美元，而我們的金融和保險業務的收入下降了 600 萬美元，反映了新零售量和二手零售量下降的影響。

As a partial offset, our Parts and Service business increased $12.2 million, or 6.9%. Our consolidated gross margin improved 50 basis points to 16% in the third quarter of 2008, compared to the same period a year ago. This improvement was more than explained by the shift in revenue mix on a year-over-year basis towards our higher margin segments. A partial offset was the decline in the margins of several of our businesses. Margins were lower in our new and used vehicle businesses, declining 40 and 20 basis points respectively. In addition, margins in our Parts and Service business declined 240 basis points to 53.2%, reflecting faster growth in our Wholesale Parts and Collision businesses, where margins are lower on a relative basis. Even though margins were down in Parts and Service, with the growth we achieved, gross profit generated by our Parts and Service business increased 2.3% to $100.3 million. Although we reduced our consolidated SG&A expenses by $4.3 million in absolute terms, SG&A expense as a percent of gross profit increased 540 basis points from 77% in third quarter 2007, to 82.4% in 2008, as a result of the decline in gross profit, and $21.7 million or 8.6% to $229.6 million.

作為部分抵消，我們的零件和服務業務增加了 1220 萬美元，即 6.9%。與去年同期相比，2008 年第三季度我們的綜合毛利率提高了 50 個基點，達到 16%。這種改善不僅僅是因為收入組合同比向我們的更高利潤率部門的轉變。部分抵消是我們幾項業務的利潤率下降。我們的新車和二手車業務的利潤率較低，分別下降了 40 和 20 個基點。此外，我們的零件和服務業務的利潤率下降了 240 個基點至 53.2%，反映出我們的批發零件和碰撞業務增長更快，而這些業務的利潤率相對較低。儘管零部件和服務的利潤率有所下降，但隨著我們實現的增長，我們的零部件和服務業務產生的毛利潤增長了 2.3%，達到 1.003 億美元。儘管按絕對值計算，我們將綜合 SG&A 費用減少了 430 萬美元，但由於毛利潤下降，SG&A 費用佔毛利潤的百分比從 2007 年第三季度的 77% 增加了 540 個基點，達到 2008 年的 82.4%， 2170 萬美元或 8.6% 至 2.296 億美元。

Consolidated floor plan interest expense decreased $282,000, or 2.4% in the third quarter 2008, to $11.2 million compared with the same period a year ago. This decrease was primarily attributable to 144 basis point decline in our weighted average floor plan interest rate, including the impact of our interest rate swaps. This was substantially offset by $173.5 million increase in our weighted average borrowings. Other interest expense increased $1.5 million to 26.4%, to $7.2 million for the third quarter of 2008, as our weighted average borrowings of other debts increased to $147.2 million, our weighted average interest rate increased 5 basis points.

與去年同期相比，2008 年第三季度綜合平面圖利息支出減少 282,000 美元或 2.4%，至 1,120 萬美元。這一下降主要是由於我們的加權平均平面圖利率下降了 144 個基點，包括我們的利率掉期的影響。這被我們加權平均借款增加 1.735 億美元所抵消。其他利息支出增加 150 萬美元至 26.4%，2008 年第三季度為 720 萬美元，因為我們其他債務的加權平均借款增加至 1.472 億美元，我們的加權平均利率增加了 5 個基點。

The increase in weighted average borrowings primarily reflects the continued execution of our strategy to own more of the real estate associated with our dealership operations, as well as the outstanding borrowings under the acquisition line of our credit facility, which we were able to pay down by $35 million during the third quarter. Increase in interest expense from the mortgage facility and acquisition line was partially offset by the redemption of $28.3 million of our senior subordinated notes over the past 12 months. Manufacturers' interest assistance, which we record as a reduction of new vehicle cost of sales at the time the vehicles are sold, was 65.7% of total floor plan interest cost for the third quarter of 2008, a 21.3 percentage point decline from the 87% level of coverage experienced in the third quarter a year ago. The decline stems primarily from the impact of our $550 million of fixed rate swaps that we had in place at September 30, 2008, at a weighted average interest of rate of 4.7%. We reflect the monthly contract settlement of these swaps as a component of floor plan interest expense.

加權平均借款的增加主要反映了我們繼續執行我們擁有更多與我們的經銷商業務相關的房地產的戰略，以及我們的信貸額度收購額度下的未償還借款，我們能夠通過第三季度為 3500 萬美元。過去 12 個月我們贖回了 2830 萬美元的高級次級票據，部分抵消了抵押貸款和收購額度的利息支出增加。2008 年第三季度，製造商的利息援助（我們記錄為新車銷售成本的減少）佔 2008 年第三季度總平面圖利息成本的 65.7%，比 87% 下降了 21.3 個百分點一年前第三季度的覆蓋水平。下降的主要原因是我們在 2008 年 9 月 30 日以 4.7% 的加權平均利率進行的 5.5 億美元固定利率掉期的影響。我們將這些互換的月度合約結算反映為平面圖利息支出的一個組成部分。

Now turning to same-store results, in the third quarter, we had revenues of $1.4 billion, which was a 15.9% decline from the same period a year ago. Significantly lower customer traffic, coupled with tighter lending standards, particularly reduced loan to value levels, caused our same-store new vehicle unit sales to decline 18.2% and our new vehicle revenues to decline $182 million or 17.9% in the third quarter. We estimate the hurricane impact lowered these results by approximately 2 percentage points. We continued to experience lower demand for trucks and other less fuel efficient vehicles; in addition, soft economic conditions, particularly in our California and southeastern markets, persisted. As a result, for the three months ended September 30, 2008 our same-store new truck unit sales declined 20% from third quarter of 2007, and new car unit sales declined 16.8% for the same period.

現在轉向同店業績，第三季度，我們的收入為 14 億美元，比去年同期下降 15.9%。客戶流量顯著下降，加上貸款標準收緊，尤其是貸款價值水平降低，導致我們第三季度同店新車銷量下降 18.2%，新車收入下降 1.82 億美元或 17.9%。我們估計颶風的影響使這些結果降低了大約 2 個百分點。我們對卡車和其他燃油效率較低的車輛的需求繼續下降；此外，疲軟的經濟狀況持續存在，尤其是在我們的加利福尼亞州和東南部市場。因此，在截至 2008 年 9 月 30 日的三個月中，我們的同店新卡車銷量比 2007 年第三季度下降了 20%，同期新車銷量下降了 16.8%。

Particularly in light of the impact of the two hurricanes during the third quarter, we believe that our results are at least consistent with the retail performance of the brands that we represent in the markets that we serve. In our Retail Used Vehicle business, same-store sales slipped 13.9% or $39.8 million, on 11.1% fewer units. Most of this decline is explained by lower sales in markets that are traditionally strong truck markets. As with new vehicle sales, we estimate the hurricane impact lowered our used vehicle results by approximately 2 percentage points. Overall, our same-store unit sales of used retail trucks declined 15.9%, while used car sales declined 7.1%.

特別是考慮到第三季度兩次颶風的影響，我們認為我們的業績至少與我們所代表的品牌在我們所服務的市場中的零售業績一致。在我們的零售二手車業務中，同店銷售額下滑 13.9% 或 3,980 萬美元，銷量減少 11.1%。這種下降的主要原因是傳統上強勁的卡車市場的銷量下降。與新車銷售一樣，我們估計颶風的影響使我們的二手車業績降低了約 2 個百分點。總體而言，我們二手零售卡車的同店銷量下降了 15.9%，而二手車銷量下降了 7.1%。

In addition, tighter underwriting guidelines, reducing loan to value ratios and requiring more money down has negatively impacted our retail used vehicle sales and margins. We continue to focus on improving our Used Vehicle business, utilizing technology to enhance our selling, and inventory management processes. As a result, our Used Vehicle business mix continues to shift towards used retail sales and away from less profitable wholesale sales. Our wholesale used vehicle sales were down $28.6 million or 34.4% compared with the same period a year ago. Over the past two months, we've seen a small rebound in auction values for pickup trucks and SUVs, which has helped lower wholesale offers from $104 in the third quarter of 2007 to $63 per unit this quarter.

此外，更嚴格的承保指南、降低貸款價值比以及要求更多首付對我們的零售二手車銷售和利潤率產生了負面影響。我們繼續專注於改進我們的二手車業務，利用技術來增強我們的銷售和庫存管理流程。因此，我們的二手車業務組合繼續從利潤較低的批發銷售轉向二手零售。與去年同期相比，我們的二手車批發銷售額下降了 2860 萬美元或 34.4%。在過去的兩個月裡，我們看到皮卡車和 SUV 的拍賣價格出現小幅反彈，這有助於將批發報價從 2007 年第三季度的每輛 104 美元降至本季度的每輛 63 美元。

Despite the more challenging economic environment, our fixed operations remain robust through the third quarter of 2008, with same-store revenues increasing $1.9 million or 1.1% to $176 million. We estimate that the hurricane took more than 1 percentage point off of our parts and service results that quarter. Our revenue improvement was driven by a 3% increase in our warranty-related sales, a 3.9% increase in our collision business, and a 2.6% improvement in our wholesale part sales. Partially offsetting these improvements was a decline of less than 1% in our customer pay parts and service revenues.

儘管經濟環境更具挑戰性，我們的固定業務在 2008 年第三季度仍然保持強勁，同店收入增加 190 萬美元或 1.1% 至 1.76 億美元。我們估計颶風使我們那個季度的零件和服務結果減少了 1 個百分點以上。我們的收入增長得益於保修相關銷售額增長 3%、碰撞業務增長 3.9% 以及批發零件銷售額增長 2.6%。我們的客戶付費零件和服務收入下降不到 1%，部分抵消了這些改進。

Reduction in retail volume more than explained the $7 million decline in our same-store F&I revenues to $45.3 million in the third quarter of 2008 compared to same period a year ago. However, our F&I revenue per retail unit improved $31 in the third quarter of 2008, to $1,072 per retail unit, partially offsetting the impact of the decline in retail units. Same-store gross margins improved 50 basis points in third quarter of 2008 to 16%, reflecting the favorable shift in our business mix. Our total used vehicle margin remained flat at 8.6%, while our parts and service margin declined 230 basis points to 53.3%, and our new vehicle margin declined 40 basis points to 6.3%.

與去年同期相比，2008 年第三季度我們的同店 F&I 收入下降 700 萬美元至 4530 萬美元，這完全是零售量減少的原因。然而，2008 年第三季度，我們每零售單位的 F&I 收入增加了 31 美元，達到每零售單位 1,072 美元，部分抵消了零售單位下降的影響。2008 年第三季度同店毛利率提高了 50 個基點，達到 16%，反映了我們業務組合的有利轉變。我們的二手車總利潤率保持在 8.6%，而我們的零件和服務利潤率下降 230 個基點至 53.3%，我們的新車利潤率下降 40 個基點至 6.3%。

New and used retail gross profit for retail units declined 6.1% to $1,888, and 10.2% to $1,822 per unit respectively. On the new vehicle side of the business, improvements in our same-store car margins and gross profit for retail units were more than offset by margin and profit declines in our truck segment. Same-store margins and profit per retail unit were down in the aggregate for our domestic, import, and luxury lines. We continue to experience margin pressure in our retail used vehicle business which declined 90 basis points from same period a year ago to 10.7%.

零售單位的新舊零售毛利分別下降 6.1% 至 1,888 美元和 10.2% 至 1,822 美元。在新車業務方面，我們的同店汽車利潤率和零售部門毛利的改善被我們卡車部門的利潤率和利潤下降所抵消。我們的國內、進口和奢侈品系列的同店利潤和每零售單位利潤總體下降。我們的零售二手車業務繼續面臨利潤率壓力，較去年同期下降 90 個基點至 10.7%。

The decrease was primarily on the car side as a reduced loan to value levels pressured margin. We experienced some offset from firming used truck margins as gas prices declined during the quarter. The combination of reduced wholesale losses and a continued reduction in wholesale mix allowed us to maintain total used vehicle margins at 8.6%. In the parts and service area for the quarter, we experienced positive margin improvements in our warranty segment as well as our wholesale part segment. However, our same-store parts and service gross margin declined from 55.6% in the third quarter of 2007 to 53.3% in the comparable period of 2008 as a result of the decline in the margins from our customer pay parts and service segment, as well a mix shift reflecting faster growth in our wholesale parts and collision businesses, where margins are lower on a relative basis.

減少主要是在汽車方面，因為貸款價值水平的降低壓低了利潤率。由於本季度汽油價格下跌，我們的二手卡車利潤率走強帶來了一些抵消。批發損失減少和批發組合持續減少的結合使我們能夠將二手車總利潤率維持在 8.6%。在本季度的零件和服務領域，我們的保修部門和批發零件部門的利潤率都出現了積極的改善。然而，我們的同店零件和服務毛利率從 2007 年第三季度的 55.6% 下降到 2008 年同期的 53.3%，這是由於我們的客戶付費零件和服務部門的利潤率下降，以及混合轉變反映了我們批發零件和碰撞業務的更快增長，這些業務的利潤率相對較低。

In these challenging economic conditions, we continue to focus on reducing costs. As a result, we lowered same-store SG&A expenses by 5.8% to $179.8 million in the third quarter of 2008, But we did not fully offset the decline of same-store gross profit that we experienced this quarter; and as such, same-store SG&A as a percent of gross profit decreased 620 basis points, in the third quarter of 2008, to 82.8%. We estimate that Hurricane Ike negatively impacted this ratio by nearly 200 basis points. Given the further slowdown we've experienced as the quarter progressed, and our view that the overall economy is not likely to improve in 2009, we've been actively working to further reduce our costs. To date, our team has identified additional incremental cost reductions that we estimate will reduce our costs by approximately $35 million on an annualized basis.

在這些充滿挑戰的經濟條件下，我們繼續專注於降低成本。因此，我們在 2008 年第三季度將同店 SG&A 費用降低了 5.8% 至 1.798 億美元，但我們並未完全抵消本季度同店毛利的下降；因此，2008 年第三季度同店 SG&A 佔毛利潤的百分比下降了 620 個基點，降至 82.8%。我們估計颶風艾克對該比率產生了近 200 個基點的負面影響。鑑於我們在本季度的進展中經歷的進一步放緩，以及我們認為 2009 年整體經濟不太可能改善的觀點，我們一直在積極努力進一步降低成本。迄今為止，我們的團隊已經確定了額外的增量成本削減，我們估計這將使我們的成本每年減少約 3500 萬美元。

Included in this total is $21 million of personnel cost reductions, $11 million of reduced advertising spending, and $3 million of other costs, primarily lower outside service costs. We are in the process of implementing these reductions and should have most in place by the end of this year. Same-store floor plan interest expense decreased 4.7%, or $524,000, to $10.7 million in the third quarter of 2008, as a 135 basis point decline in floor plan weighted average interest rates, including the impact of our interest rate swaps, was partially offset by an increase in our weighted average borrowings of $135 million. The higher weighted average borrowings reflect higher vehicle inventory levels from the comparable period a year ago, although vehicle inventory at the end of the third quarter of this year was down $77.5 million from second quarter 2008 levels. We would anticipate continuing to lower inventory over the coming months.

這一總額中包括 2100 萬美元的人員​​成本削減、1100 萬美元的廣告支出削減和 300 萬美元的其他成本，主要是外部服務成本的降低。我們正在實施這些削減，並且應該在今年年底之前完成大部分削減。2008 年第三季度同店平面圖利息支出下降 4.7% 或 524,000 美元至 1,070 萬美元，因為平面圖加權平均利率下降 135 個基點，包括我們的利率掉期的影響，被部分抵消我們的加權平均借款增加了 1.35 億美元。較高的加權平均借款反映了與去年同期相比較高的汽車庫存水平，儘管今年第三季度末的汽車庫存比 2008 年第二季度的水平下降了 7750 萬美元。我們預計未來幾個月將繼續降低庫存。

Now turning to liquidity and capital structure, we had $42.2 million of cash on hand as of September 30, 2008. In addition to our cash on hand, we use our floor plan offset account to temporarily invest excess cash. These immediately available funds totaled an additional $6.5 million at quarter end. As I previously stated, we used available cash during the quarter to repay $35 million of borrowings on our acquisition line, leaving $15 million outstanding at September 30, 2008. This gives us $317 million of available borrowing capacity under this facility after considering the $18 million of letters of credit outstanding. With regards to our real estate investment portfolio, we completed the construction of our Beverly Hills Mercedes-Benz service facility during the third quarter, and began operations in the state of the art shop which we own.

現在轉向流動性和資本結構，截至 2008 年 9 月 30 日，我們手頭有 4220 萬美元的現金。除了我們手頭的現金外，我們還使用我們的平面圖抵消賬戶來臨時投資多餘的現金。這些立即可用的資金在季度末總計增加了 650 萬美元。正如我之前所說，我們在本季度使用可用現金償還了 3500 萬美元的收購業務借款，截至 2008 年 9 月 30 日還剩 1500 萬美元未償還。考慮到 1800 萬美元的未償信用證，這為我們提供了 3.17 億美元的可用借貸能力。關於我們的房地產投資組合，我們在第三季度完成了比佛利山莊梅賽德斯-奔馳服務設施的建設，並開始運營我們擁有的最先進的商店。

In total, we own $390 million of land and buildings at September 30, 2008. To finance these holdings, we've utilized our mortgage facility and executed borrowings under other real estate specific debt agreements. As of September 30th, 2008, we had borrowings outstanding of $180.4 million, under our mortgage facility, to $54.6 million, available for future borrowings. In addition, we had $38.7 million of borrowings outstanding, under other real estate related debt agreements.

截至 2008 年 9 月 30 日，我們總共擁有 3.9 億美元的土地和建築物。為了為這些資產融資，我們利用了我們的抵押貸款工具，並根據其他房地產特定債務協議執行了借款。截至 2008 年 9 月 30 日，我們的抵押貸款餘額為 1.804 億美元，可用於未來借款的 5460 萬美元。此外，根據其他與房地產相關的債務協議，我們還有 3870 萬美元的未償還借款。

As for the stability of our capital structure, we do not have any near term liquidity pressures; except for the Ford floor plan facility, we face no significant debt refinancing decisions until March, 2012, when our revolving credit to the real estate facilities expire. Our Ford floor plan facility is an evergreen arrangement, that renews annually in December. We had engaged Ford Motor Credit Company in conversations regarding the renewal of this facility in December 2008, and at this time, do not have any reason to believe that the facility will not be renewed. However, if we are unable to agree with Ford on acceptable terms of renewal, we have the necessary capacity within our revolving credit facility to absorb this floor plan financing requirement. Further, our 8.25 senior subordinated notes mature in 2013, and our 2.25 convertible notes are not puttable until 2016.

至於我們資本結構的穩定性，我們沒有任何短期的流動性壓力；除了福特平面圖設施外，我們在 2012 年 3 月之前沒有面臨重大的債務再融資決定，屆時我們對房地產設施的循環信貸到期。我們的福特平面圖設施是常青樹，每年 12 月更新。我們已於 2008 年 12 月與福特汽車信貸公司就更新此貸款進行了對話，目前沒有任何理由相信該貸款不會更新。但是，如果我們無法就可接受的續約條款與福特達成一致，我們的循環信貸額度內有必要的能力來吸收這一平面圖融資需求。此外，我們的 8.25 優先次級票據將於 2013 年到期，而我們的 2.25 可轉換票據要到 2016 年才能回售。

We have updated financial covenant calculations within each of our debt agreements, and as of September 30, 2008, we're in compliance with all such covenants. As a result of the net loss recognized for the third quarter, we currently have $3.4 million available to make restricted payments under the covenants of our 8.25 senior subordinated notes. On a quarterly basis, going forward, this available amount will increase by 50% of our consolidated net income.

我們更新了每份債務協議中的財務契約計算，截至 2008 年 9 月 30 日，我們遵守了所有此類契約。由於第三季度確認的淨虧損，我們目前有 340 萬美元可用於根據我們的 8.25 優先次級票據的契約進行限制性付款。按季度計算，未來這一可用金額將增加我們綜合淨收入的 50%。

Our total long term debt to capitalization ratio, excluding real estate debt totaled 37% at September 30, 2008. This was down from 39% at June 30, 2008, primarily as a result of the $35 million repayment on the acquisition line that I mentioned earlier, as well as the repurchase of $9.7 million of our 8.25 senior subordinated notes during the quarter. With regards to our capital expenditures for the third quarter, we used $12.2 million to construct new facilities, purchase equipment and improve existing facilities. This amount excludes the purchase of land and existing buildings. We estimate that our capital expenditures for the full year including the purchase of land and existing buildings will be $55 million.

截至 2008 年 9 月 30 日，我們的總長期債務與資本化比率（不包括房地產債務）總計為 37%。這比 2008 年 6 月 30 日的 39% 有所下降，這主要是由於我之前提到的收購行的 3500 萬美元還款，以及本季度 8.25 優先次級票據中 970 萬美元的回購。關於我們第三季度的資本支出，我們使用了 1220 萬美元來建造新設施、購買設備和改善現有設施。該金額不包括購買土地和現有建築物。我們估計，包括購買土地和現有建築物在內的全年資本支出將為 5500 萬美元。

Although we are confident in our balance sheet, and our ability to meet our covenants under a wide range of economic scenarios, we believe it prudent to continue to further strengthen our balance sheet. As a result, we are closely reviewing all planned future capital spending, and working closely with our manufacturer partners in this area. As a result, we anticipate 2009 capital spending will be down significantly from this year's level. In addition, we are also reviewing all additional uses of cash for opportunities, including as Earl mentioned, lowering our acquisition target in 2008.

儘管我們對我們的資產負債表以及我們在各種經濟情景下履行契約的能力充滿信心，但我們認為繼續進一步加強我們的資產負債表是謹慎的做法。因此，我們正在密切審查所有計劃的未來資本支出，並與我們在該領域的製造商合作夥伴密切合作。因此，我們預計 2009 年的資本支出將比今年的水平大幅下降。此外，我們還在審查所有額外使用現金的機會，包括正如 Earl 提到的那樣，降低我們 2008 年的收購目標。

Our top priority at this time is to use the cash we generate to further strengthen our balance sheet by paying down debt. We believe our present financing arrangements are valuable assets that we intend to protect. For additional detail regarding our financial condition, please refer to the schedules of additional information attached to the news release, as well as the investor presentation posted on our website. With that, I will now turn back over to Earl.

我們此時的首要任務是使用我們產生的現金通過償還債務來進一步加強我們的資產負債表。我們相信我們目前的融資安排是我們打算保護的寶貴資產。有關我們財務狀況的更多詳細信息，請參閱新聞稿所附的附加信息的時間表，以及我們網站上發布的投資者介紹。有了這個，我現在將轉回伯爵。

Thanks, John. Now let me address our guidance. As I stated in our press release earlier this morning, we are suspending our 2008 full year guidance. It is difficult enough during normal business conditions to provide valid earnings guidance. Given the unprecedented market volatility, rapidly changing consumer confidence, and the shifting lending environment, it is impossible to predict near-term vehicle industry sales levels, and therefore impossible to provide any meaningful estimates at this time. We will address 2009's full year guidance when we announce our fourth quarter earnings in February.

謝謝，約翰。現在讓我談談我們的指導。正如我在今天上午早些時候的新聞稿中所述，我們將暫停 2008 年全年指導。在正常的商業條件下，很難提供有效的收益指導。鑑於前所未有的市場波動、迅速變化的消費者信心以及不斷變化的貸款環境，無法預測近期汽車行業的銷售水平，因此目前無法提供任何有意義的估計。我們將在 2 月份公佈第四季度收益時提出 2009 年全年指導意見。

Before we begin the Q and A, I wanted to say something about Randy Callison. A couple of weeks ago, we announced that Randy has decided to retire at the end of year so he can spend more time with his family. Randy has served as our Senior Vice President of Operations and Corporate Development since mid-2006. It was his service in corporate development that had the biggest impact on the Company. He has been involved in nearly every acquisition in this position that Group 1 completed since 1996, before the Company went public. He was also instrumental in seeing Group 1 through the structural reorganization I implemented after I joined the Company in 2005, and for that, I'm very grateful. I as well as all the employees who've worked with him over the years will miss him, but we all wish he and his family well.

在我們開始問答之前，我想談談蘭迪·卡里森。幾週前，我們宣布蘭迪決定在年底退休，這樣他就可以花更多時間陪伴家人。Randy 自 2006 年年中以來一直擔任我們的運營和企業發展高級副總裁。對公司影響最大的是他在企業發展方面的服務。自 1996 年公司上市之前，他幾乎以這個職位參與了 Group 1 完成的每一次收購。在我於 2005 年加入公司後實施的結構重組中，他還幫助我看到了第 1 組，為此，我非常感激。我以及多年來與他共事的所有員工都會想念他，但我們都希望他和他的家人一切安好。

That concludes our prepared remarks. And in a moment, we will open the call up for Q and A. Joining me on the call today are Randy Callison, who is joining us for his last earnings call; John Rickel, our Senior Vice President and Chief Financial Officer; Pete DeLongchamps, our Vice President of Manufacturing Relations and Public Affairs; and Lance Parker, our Vice President and Corporate Controller.

我們準備好的發言到此結束。稍後，我們將開啟問答環節。今天和我一起參加電話會議的是 Randy Callison，他將加入我們的最後一次財報電話會議；我們的高級副總裁兼首席財務官 John Rickel； Pete DeLongchamps，我們的製造關係和公共事務副總裁；和我們的副總裁兼公司財務總監 Lance Parker。

I'll now turn the call over to operator to begin the question and answer session.

我現在將電話轉給接線員開始問答環節。

Thank you. We will now begin the question-and-answer session.(OPERATOR INSTRUCTIONS). Our first question comes from the line of John Murphy with Merrill Lynch. Please go ahead.

謝謝。我們現在開始問答環節。（操作員說明）。我們的第一個問題來自 John Murphy 與 Merrill Lynch 的對話。請繼續。

Good morning, guys. John, you guys did some work on your covenants at the beginning of this year, reworked them with the banks to get some more headroom on your max leverage covenants. I was just wondering, if we run into some tougher times next year, which it looks like we're heading into, if there might be the need to rework some of your covenants, how that process worked earlier this year, and if you think the banks would be willing to work with you and how you would work through that process?

早上好傢伙。約翰，你們在今年年初就你們的契約做了一些工作，與銀行一起重新制定它們，以便在您的最大槓桿契約上獲得更多空間。我只是想知道，明年我們是否會遇到一些更艱難的時期，看起來我們正在進入，是否可能需要重新制定您的一些契約，今年早些時候這個過程是如何運作的，以及您是否認為銀行願意與您合作，您將如何完成該過程？

Yes, John, this is John Rickel. Good question. At present, we really don't anticipate needing to, to rework the covenants, that's kind of point one. We have looked at it under a variety of scenarios and are comfortable with how we're traveling, how we're performing.

是的，約翰，我是約翰·里克爾。好問題。目前，我們真的不認為需要重新制定盟約，這是第一點。我們已經在各種情況下對其進行了研究，並且對我們的旅行方式和表現感到滿意。

To your second point, though, we do think that if the situation would worsen materially, or something unexpected would occur, the banks have shown a willingness to have those discussions, but recognize there's a price involved, which is why we're very focused right now on continuing to work on the business, deliver the results, and really work on strengthening the balance sheet. I really don't want to have to, to go do that if we don't have to. And right now, we don't anticipate it.

不過，關於你的第二點，我們確實認為，如果情況會嚴重惡化，或者會發生意想不到的事情，銀行已經表現出進行這些討論的意願，但也認識到其中涉及到代價，這就是為什麼我們非常關注現在繼續開展業務，交付成果，並真正致力於加強資產負債表。我真的不想必須，如果我們不必這樣做的話。而現在，我們沒有預料到它。

Okay. Then on SG&A, we look at your program to cut $35 million, that's great. I was just wondering also, as times get tougher, and we think about SG&A, if you could just paint a little more color around what portion of SG&A is variable and what portion is fixed. And as we go forward, if things get tougher, is it going to be more personnel and advertising cuts or are there other areas that you might be able to get into a little bit deeper in the cost curve?

好的。然後在 SG&A 上，我們看一下你削減 3500 萬美元的計劃，這很好。我也想知道，隨著時間變得越來越艱難，我們會考慮 SG&A，是否可以在 SG&A 的哪些部分是可變的，哪些部分是固定的周圍塗上更多顏色。隨著我們的前進，如果事情變得更加艱難，是否會削減更多的人員和廣告，或者是否有其他領域可以讓您在成本曲線上更深一點？

John, this is Earl, I don't want to imply that we believe that $35 million is enough at this moment. Personally, I think that we're going to need to go deeper than that. We're trying to get a fix for the current sales travel rate, which, until we have a month of data in October, and then maybe into November, it's hard to tell where the current true sales rate is in the industry. But I don't think, I don't think we're sized properly yet. This is about our fifth round of cuts for some of our dealerships, such as our California dealerships, whereas we've just started to cut in Houston and some of the other areas. But when we look at our personnel expense, personnel- related, which is about 60% of total SG&A, probably around half of that is truly, is truly variable. You have benefit costs, you have to have a certain level of management, and a certain level of pay that is not completely variable in terms of relating to gross profit generated.

約翰，我是厄爾，我不想暗示我們認為目前 3500 萬美元就足夠了。就我個人而言，我認為我們需要進行更深入的研究。我們正在嘗試確定當前的銷售差旅率，直到我們在 10 月獲得一個月的數據，然後可能進入 11 月，我們很難判斷當前的真實銷售率在行業中的位置。但我不認為，我認為我們的規模還不合適。這是我們對一些經銷商進行的第五輪裁員，例如我們在加利福尼亞的經銷商，而我們剛剛開始在休斯頓和其他一些地區進行裁員。但是，當我們查看我們的人事費用時，與人事相關的費用大約佔 SG&A 總額的 60%，其中大約一半是真正可變的。你有福利成本，你必須有一定的管理水平，以及一定的薪酬水平，就產生的毛利潤而言，薪酬水平不是完全可變的。

The same with advertising. It's highly flexible and very responsive, but there is a certain level of advertising we need to do, just to maintain awareness. And nowadays, in particular, you have to have a constant web presence or electronic media presence. So that's about the best I can answer that question at the moment.

廣告也一樣。它非常靈活且響應迅速，但我們需要做一定程度的廣告，只是為了保持知名度。尤其是如今，您必須始終保持網絡形像或電子媒體形象。所以這是我目前能回答的最好的問題。

Okay, and Randy, on your last conference call, not to let you get away unscathed here without having an analyst ask you a tough question, you've seen the acquisition environment for quite some time now. I'm just wondering what you think it looks like right now? Clearly a lot of companies are sort of cash strapped here or capital-strapped, and they're not able to make advantageous acquisitions in an environment like this. Are there advantageous acquisitions or cheap acquisitions to be made out there, and it's just a tough time because there's not a lot of capital available? Or are we just looking at a lot of dogs out there that are up for sale in the dealership network?

好吧，蘭迪，在你上次電話會議上，為了讓你毫髮無損地離開這裡，沒有分析師問你一個棘手的問題，你已經看到收購環境已經有一段時間了。我只是想知道你認為它現在看起來像什麼？很明顯，很多公司在這裡資金緊張或資金緊張，他們無法在這樣的環境中進行有利的收購。那裡是否有有利的收購或廉價的收購，而且這是一個艱難的時期，因為沒有很多可用的資金？或者我們只是在尋找經銷商網絡中待售的大量狗？

Thanks, John, this is Randy. There are some regionally priced domestics, which isn't what we're looking to add to our portfolio. There's still a gap between what sellers want for imported high-line and what buyers are willing to pay. That's probably going to come down, at some point, in '09. I think it's a great time for the public to be quiet on acquisitions and wait for that gap to shrink.

謝謝，約翰，這是蘭迪。有一些區域定價的國內產品，這不是我們希望添加到我們的產品組合中的產品。賣家對進口高線產品的需求與買家願意支付的價格之間仍然存在差距。在 09 年的某個時候，這可能會下降。我認為現在是公眾對收購保持沉默並等待差距縮小的好時機。

Okay, so you think prices still need to come down quite a bit to more realistic levels?

好的，所以您認為價格仍需要大幅下降到更現實的水平？

I do -- on the desirable franchises, the import and high-lines. Domestics are reasonable right now, if someone wanted to go that direction.

我願意——關於理想的特許經營權、進口和高線。如果有人想朝那個方向發展，國內現在是合理的。

Then just one last question, as far as the demand weakness that you guys are seeing in your dealerships, there's a big debate on how much of it is because of credit tightness and how much of it is just really fundamental weakness; it's a very tough thing to parse out. In your opinion, and what you're seeing in your dealerships, how much is just because of fundamental weakness in the economy and the fact that unemployment is rising and consumer confidence is falling off a cliff? And how much of it is actually because consumers can't get credit to buy the vehicles?

然後是最後一個問題，就你們在經銷商中看到的需求疲軟而言，關於其中有多少是由於信貸緊縮以及有多少只是真正的基本面疲軟存在著很大的爭論；這是一件很難解析的事情。在您看來，以及您在經銷商中看到的情況，有多少僅僅是因為經濟的基本疲軟以及失業率上升和消費者信心急劇下降的事實？其中有多少實際上是因為消費者無法獲得購買車輛的信貸？

John, this is Earl. The vast majority of the issue is customer traffic from the overall lack of confidence and the economic disruptions. We've chatted here among our group, and we kind of see it as being about 80% of traffic issue and 20% a lending issue. That's not scientific, but that is our feel based on our field input.

約翰，這是厄爾。絕大多數問題是由於整體信心不足和經濟中斷造成的客戶流量。我們已經在我們的團隊中進行了交談，我們將其視為大約 80% 的流量問題和 20% 的貸款問題。這不科學，但這是我們基於現場輸入的感覺。

Great, thank you very much, guys.

太好了，非常感謝你們，伙計們。

Our next question comes from the line of Rick Nelson with Stephens Company, Please go ahead.

我們的下一個問題來自 Stephens Company 的 Rick Nelson，請繼續。

Thank you, good morning. I wanted to follow up on the expense cuts that you have in place, the $35 million. How much of that do you see coming here in the fourth quarter, and how will that sort of lay out over the next 12 months?

謝謝你，早上好。我想跟進您實施的 3500 萬美元的開支削減。您認為第四季度有多少會出現這種情況，在接下來的 12 個月中將如何佈局？

This is John Rickel. We've started implementing most of the plan. Now, obviously, you don't get it all at the start of the quarter, but we think by the end of this year, those cuts should basically be in place. So you get a portion of it this quarter, and then you should get the annualized effect next year.

這是約翰·里克爾。我們已經開始實施大部分計劃。現在，很明顯，你在本季度初並沒有得到全部，但我們認為到今年年底，這些削減應該基本上到位。所以你這個季度得到一部分，然後明年你應該得到年化的效果。

Okay. Thank you for that. Service and parts strength, I know you talked about capacity additions driving that, but is it, any operational, changes that are going on that are also driving that good number?

好的。謝謝你。服務和零件實力，我知道你談到了增加產能推動這一點，但是否正在發生的任何運營變化也推動了這個好數字？

Rick, this is Earl. I think that a lot of what we are realizing is the focus we've put on this over the last year or two, but also the benefit of moving our brand mix toward these import and luxury brands, which have the growing units in operation. And so, there's a lot of things on the good side of the ledger in the parts and service business these days. The units in operation that wave from these brands like Toyota and BMW, and Honda, that have grown, CPO business, certified pre-owned which ties people back to us; complexity of vehicles, selling to 33%, 35% extended service contracts. There's a lot of good things on the positive side of the parts and service ledger.

瑞克，這是厄爾。我認為我們正在意識到的很多事情是我們在過去一兩年中對此的關注，以及將我們的品牌組合轉向這些擁有不斷增長的運營單位的進口和奢侈品牌的好處。因此，如今在零件和服務業務的分類賬上有很多好處。豐田、寶馬和本田等品牌的運營單位已經發展壯大，CPO 業務，經過認證的二手車將人們與我們聯繫起來；車輛的複雜性，銷售至 33%，延長服務合同的佔 35%。零件和服務分類賬的積極方面有很多好東西。

Now, I wouldn't say there aren't a couple things on the negative side. Clearly, people have been driving less miles, and there's some cost pressure on -- not everyone is going to accept every repair presented to them in the service drive these days, so there's a little economic pressure in the parts and service business too. But it seems to me that the factors on the positive side of the ledger outweigh those negative factors, at least at the moment, at least based on what we've seen to date.

現在，我不會說消極方面沒有幾件事。顯然，人們的行駛里程減少了，而且存在一些成本壓力——如今並不是每個人都會接受在服務驅動器中向他們提供的每一次維修，因此零部件和服務業務也存在一些經濟壓力。但在我看來，賬本的積極因素超過了那些消極因素，至少在目前，至少根據我們迄今為止所看到的情況。

The big difference is regional? I know you have lot of exposure there in Texas.

很大的區別是區域性的？我知道你在得克薩斯州有很多曝光率。

We're really not seeing a big differential across the country.

我們真的沒有看到全國各地的巨大差異。

In the outside impairments, have you identified the dealerships that those are related to?

在外部減值中，您是否確定了與之相關的經銷商？

Internally we have, Rick. This is John Rickel. They're primarily impairments of domestic franchise value.

在內部我們有，里克。這是約翰·里克爾。它們主要是國內特許經營價值的減值。

Got you. And one final question, John, on the covenants, the two ratios we are most interested in is a leverage ratio and fixed charge coverage. Do you have those numbers through the third quarter?

明白了最後一個問題，約翰，關於契約，我們最感興趣的兩個比率是槓桿比率和固定費用覆蓋率。你有第三季度的這些數字嗎？

Yes, we do. Give me just a second. Total leverage 4.07 at the end of the third quarter. And fixed charge coverage ratio 1.37.

是的，我們有。給我一點時間。三季度末總槓桿4.07。固定費用覆蓋率1.37。

Thank you.

謝謝。

Yes, those are also, Rick, posted on the website as part of our investor presentation. They're in the road show.

是的，里克，這些也作為我們投資者介紹的一部分發佈在網站上。他們在路演。

Great.

偉大的。

Thank you, our next question comes from the line of Scott Stember with Sidoti & Company. Please go ahead.

謝謝，我們的下一個問題來自 Sidoti & Company 的 Scott Stember。請繼續。

Good morning. Thanks, Earl, for quantifying the traffic versus lending issues, but on the side of the lending issues, obviously this has gotten a lot of press lately, would you quantify the -- maybe just ballpark percentage of deals that are actually getting killed because of increased cash-down or just people just not meeting the financial requirements?

早上好。謝謝，厄爾，量化了流量與貸款問題，但在貸款問題方面，顯然這最近得到了很多媒體的關注，你能量化一下——也許只是大概的交易百分比，因為增加現金存款或只是人們不滿足財務要求？

That's more difficult, Scott, for me. I mean, we've seen some turndowns. There are -- in this market, when there's last traffic, some of the traffic out there is very poor quality traffic. They seem to stay in the market regardless of economic conditions. I would have to believe that flat turn-downs are still 10% or below the market, but I have no scientific data on that.

斯科特，這對我來說更難。我的意思是，我們已經看到了一些拒絕。有—在這個市場上，當有最後的流量時，那裡的一些流量質量很差。無論經濟狀況如何，他們似乎都留在市場上。我不得不相信，持平的調整幅度仍然是 10% 或低於市場，但我沒有這方面的科學數據。

Okay. John, I missed -- you mentioned the breakout in parts and service comps, what was the warranty work versus the customer pay?

好的。約翰，我錯過了——你提到了零件和服務補償的突破，保修工作與客戶支付的費用是多少？

Yes, the warranty work was up 3% and customer pay was down less than a percent.

是的，保修工作增加了 3%，客戶支付的費用下降了不到 1%。

On a same-store.

在同一家商店。

On a same-store basis.

以同店為基準。

What was the collision?

碰撞是怎麼回事？

Collision was up 3.9%.

碰撞上漲了 3.9%。

Okay. And just generally speaking, looking at 2009, I know you guys are not giving guidance yet, but with the level of cost cuts that you are talking about, obviously, you guys are planning to be quite profitable in 2009, I imagine, right?

好的。總的來說，看看 2009 年，我知道你們還沒有給出指導，但根據你們所說的成本削減水平，顯然你們計劃在 2009 年實現相當大的盈利，我想，對吧？

That's our goal.

這就是我們的目標。

I just want to --

我只想 -

Move us into some kind of guidance with those questions. But that's what we're here for. We're here to -- that's what we get up every day for, is to stay bodily profitable, but we really need to get some trend line data on where the industry is traveling. I've read the analyst reports, where they believe October is going to come in, but really interested to get that data next week.

帶著這些問題讓我們進入某種指導。但這就是我們來這裡的目的。我們在這裡 - 這就是我們每天起床的目的，就是保持身體盈利，但我們確實需要獲得一些關於行業發展方向的趨勢線數據。我讀過分析師報告，他們認為 10 月即將到來，但真的很想在下週獲得該數據。

I only bring it up just given the -- unfortunately, it is a common belief that dealers won't make money at all next year, so I just want to throw that out there.

我只是考慮到——不幸的是，人們普遍認為經銷商明年根本賺不到錢，所以我只想把它扔在那裡。

Also (multiple speakers) --

還有（多個揚聲器）——

That possibility certainly still exists that retailers can be profitable in this type of environment.

這種可能性肯定仍然存在，即零售商可以在這種環境中獲利。

All right, excellent. And just last -- I mean, obviously, it sounds like your capital structure is intact, the dividend is safe? Right?

好吧，優秀。最後——我的意思是，很明顯，聽起來你的資本結構完好無損，股息安全嗎？正確的？

We'll -- this is John Rickel. That is something for the Board to address.

我們會——這是 John Rickel。這是董事會要解決的問題。

Okay. That's all I have. Thank you.

好的。這就是我的全部。謝謝。

Our next question comes from the line of Matthew Fassler with Goldman Sachs. Please go ahead.

我們的下一個問題來自 Matthew Fassler 與 Goldman Sachs 的對話。請繼續。

Thanks a lot. Good morning, gentlemen. Few questions here, first of all, can you quantify the revenues associated with the divested sales, the divestitures, rather?

多謝。早上好，先生們。這裡有幾個問題，首先，你能量化與剝離銷售相關的收入嗎？

Yes, his is John Rickel, Matt. It was about $18 million on a trailing 12 month basis.

是的，他是馬特·約翰·里克爾。在過去 12 個月的基礎上，這大約是 1800 萬美元。

Only $18 million of revenue?

只有 1800 萬美元的收入？

Correct.

正確的。

You know, just a couple other questions. As we begin on some of the issues for the quarter, you talked about Ike increasing the hurricane impact in the aggregate, increasing the SG&A to gross profit ratio by about 200 basis points. Was that primarily because of the lost sales in gross profit dollars or is that SG&A dollars as well that increased because of your efforts to deal with the storms?

你知道的，只是其他幾個問題。當我們開始討論本季度的一些問題時，您談到艾克增加了颶風的總體影響，使 SG&A 與毛利率的比率增加了約 200 個基點。這主要是因為毛利潤美元的銷售損失，還是因為您為應對風暴所做的努力而增加的 SG&A 美元？

This is Earl. It was lost sales, but by the same token, during that period, our large volume dealerships that remain staffed up, so we had our normal expense load, at these large Houston and Beaumont dealerships, without the sales coming in for at least 2 weeks. So it ends up hitting you from both sides of the equation.

這是厄爾。這是銷售損失，但出於同樣的原因，在那段時間裡，我們的大量經銷商仍然人手充足，所以我們在這些大型休斯頓和博蒙特經銷商處承擔了正常的費用負擔，至少有 2 週沒有銷售.所以它最終會從等式的兩邊打擊你。

But not a lot of extraneous expenses above and beyond?

但不是有很多額外的開支嗎？

No, not extraneous -- so not significant extraneous expenses.

不，不是無關緊要的——所以不是大量的無關緊要的費用。

Got you.

明白了

This is John Rickel. We did have some minor things, generators you had to rent, fuel for those sort of things, but Earl's right -- that the primary impact was the fact that we had the expenses, we paid our people even though the stores were shut down. So it's more the lack of the revenue than any extra incremental expenses.

這是約翰·里克爾。我們確實有一些小事情，你必須租用發電機，為這些事情提供燃料，但厄爾是對的 - 主要影響是我們有費用，即使商店關閉，我們也會支付給我們的員工。因此，與其說是任何額外的增量支出，不如說是收入不足。

Great. If you look at the lower floor plan rates that you discussed overall, including your swaps, can you just remind us what the swaps looked like a year ago, and what the effective floor plan rate was, I should say? Not the effective floor plan rate but the gross floor plan rate without regard to the impact of swaps.

偉大的。如果你看看你討論的整體較低的平面圖利率，包括你的掉期，你能不能提醒我們一年前的掉期情況，以及有效的平面圖利率是多少，我應該說？不是有效平面圖率，而是不考慮掉期影響的總平面圖率。

Yes. This is John Rickel, give me just a second on that.

是的。我是 John Rickel，請稍等一下。

I can ask Randy one while you dig that up.

我可以在你挖掘的時候問蘭迪一個。

Why don't you do that?

你為什麼不那樣做？

Got you. The -- as you talk about the multiples that buyers are looking to pay and sellers are looking for, et cetera, I guess there's a point in time when the multiples were probably below where the public's were trading. I would imagine that the private market, such as it exists, is now above where the public's are trading on an EBITDA basis?

明白了當你談到買家希望支付的倍數和賣家正在尋找的倍數等等時，我想有一個時間點，倍數可能低於公眾交易的水平。我可以想像私人市場，比如它存在的，現在高於公眾在 EBITDA 基礎上交易的水平？

I think that's absolutely true.

我認為這是絕對正確的。

And are you seeing any transactions happening? Or are those prices simply prices on paper, but there's no real liquid market at this point?

你看到任何交易發生了嗎？或者這些價格只是紙面上的價格，但目前還沒有真正的流動性市場？

Matthew, I'm seeing very little transactions. There are some deals for sale, but sellers have great memories for good numbers, so they want the highest price paid, the kind of last deal multiple. So those deals are out there on the market but I'm not seeing any transact.

馬修，我看到很少的交易。有一些待售的交易，但賣家對好數字記憶猶新，所以他們想要支付的最高價，即最後一筆交易的倍數。所以市場上有這些交易，但我沒有看到任何交易。

Got you. Also, another question about the changing environment, this one probably for Earl. Your F&I per vehicle retail was still up in the third quarter; some of the financing issues that you are discussing, I would think, would weigh on F&I a little bit. Is it your expectation that you can continue to grow that line? Or would you think that it would start to finally see some pressure, given tighter financing?

明白了另外，關於不斷變化的環境的另一個問題，這個問題可能是針對 Earl 的。您的 F&I 每輛車零售額在第三季度仍在上升；我認為，您正在討論的一些融資問題會對 F&I 產生一些影響。您是否期望您可以繼續發展該產品線？還是您認為，鑑於融資收緊，它最終會開始看到一些壓力？

It's Earl. I don't see a lot of upside per unit from where we are. I believe there's a little bit but we are starting to perform at a very high level there, so I believe your assessment is accurate.

是厄爾。從我們現在的位置來看，我看不到每個單位有很多好處。我相信有一點，但我們開始在那裡表現得非常高，所以我相信你的評估是準確的。

And John, any cleanup on that last question?

約翰，關於最後一個問題的任何清理工作？

Yes, this is John Rickel, back to your question on the swaps. If you go back to same period a year ago, the weighted average interest rate would have been around about 6.7%, thereabouts.

是的，我是 John Rickel，回到你關於互換的問題。如果回到一年前的同期，加權平均利率應該在 6.7% 左右。

And this quarter?

而這個季度？

This quarter, the average rate including the swaps was about 5.25%.

本季度，包括掉期在內的平均利率約為 5.25%。

And what if you were to ignore swaps and just say apples to apples what you're paying versus last year?

如果您忽略掉期交易而只對蘋果說您支付的價格與去年相比會怎麼樣？

Would have been about 3.9.

應該是 3.9 左右。

And did that change a lot over the course of the quarter and how does that look, if you could, into the first part of Q4?

在本季度的整個過程中，這種情況是否發生了很大變化？如果可以的話，這在第四季度的第一部分看起來如何？

Well, I mean it's based on LIBOR. So, as you saw, LIBOR was spiking all over the place during third quarter. We have seen LIBOR, obviously begin to come off in the last few weeks, so it really kind of depends on what you think is going to happen with LIBOR.

好吧，我的意思是它基於 LIBOR。因此，正如您所見，LIBOR 在第三季度全面飆升。我們已經看到 LIBOR，顯然在過去幾週開始下降，所以這實際上取決於你認為 LIBOR 會發生什麼。

And would you use the three month LIBOR for that exercise?

你會用三個月的倫敦銀行同業拆借利率來做那個練習嗎？

One month LIBOR.

一個月 LIBOR。

One month LIBR. Okay. Thanks so much.

一個月 LIBR。好的。非常感謝。

Thank you. Our next question come from the line of Rich Kwas with Wachovia. Please go ahead.

謝謝。我們的下一個問題來自 Rich Kwas 與 Wachovia 的對話。請繼續。

Hi, good morning, guys. John, on customer pay margins, is there much you could do to try to improve the margin in the business right now?

嗨，早上好，伙計們。約翰，關於客戶支付利潤率，您現在可以做很多事情來嘗試提高業務利潤率嗎？

This is Earl, Rich. No, I don't -- I think there's not a lot we can do, and some of that float is based on individual customer pay brand mix from quarter to quarter. But we'll probably want to do even more aggressive promoting, I would think, through this type of environment. So I think that I'd sacrifice a half point or point of margin to get more -- keep business in the shops these days.

這是厄爾，里奇。不，我不——我認為我們無能為力，其中一些浮動是基於每個季度的個人客戶付費品牌組合。但我想，我們可能想通過這種環境進行更積極的促銷。所以我認為我會犧牲半個百分點或一個百分點的利潤來獲得更多——這些天在商店裡保持生意。

Right. Right. Okay. And then in terms of regional trends here, with oil declining, are you expecting that that's going to -- how much impact do you expect that to have in the Texas market over the next several months?

正確的。正確的。好的。然後就這裡的區域趨勢而言，隨著石油價格下跌，您是否預計未來幾個月這將對德克薩斯市場產生多大影響？

This is Earl, again. To me, the biggest factor is it could help a little bit on the launch of these new full-sized trucks that Ford and Dodge are offering. There's some real brand-loyal people in Texas and Oklahoma, and people who need a truck for their vocation or life-style, and that gives us a little better chance to get some early adopters into those new trucks. I don't think it's any type of panacea, but it's certainly better than what it was looking like 45 or 60 days ago.

又是厄爾。對我來說，最大的因素是它可以對福特和道奇提供的這些新型全尺寸卡車的推出有所幫助。得克薩斯州和俄克拉荷馬州有一些真正的品牌忠誠者，以及需要卡車來滿足他們的職業或生活方式的人，這讓我們有更好的機會讓一些早期採用者使用這些新卡車。我不認為它是任何類型的靈丹妙藥，但它肯定比 45 或 60 天前的樣子要好。

Okay. And then in terms of the acquisitions divestitures, John, Earl, should we think about, I know you are not giving guidance until February, but should we think about that in terms of the acquisition market being -- not doing much next year, that it will be relatively neutral or maybe a net divester, maybe you'll be a net divester next year?

好的。然後就收購資產剝離而言，約翰，厄爾，我們是否應該考慮，我知道你要到 2 月才會給出指導，但我們是否應該考慮收購市場 - 明年不會做太多，那它將是相對中性的或者可能是淨撤資者，也許你明年會成為淨撤資者？

Well, based on where we sit right now, that would be my opinion, but we all know it's a dynamic market, but as we sit here now, I would think it would have to be a very good opportunity, just an overwhelming opportunity for us to acquire something in the near term.

好吧，根據我們現在所處的位置，這是我的意見，但我們都知道這是一個充滿活力的市場，但當我們現在坐在這裡時，我認為這必須是一個非常好的機會，一個壓倒性的機會我們在短期內獲得一些東西。

Okay. And then on the mortgage debt front, John, do you have any restrictions with your covenants on moving towards more ownership? Is there -- do any of your -- do you feel any of your covenants are going to restrict your ability to convert to more real estate ownership, taking on more mortgage debt?

好的。然後在抵押貸款債務方面，約翰，你的契約對獲得更多所有權有什麼限制嗎？有沒有——你的任何一個——你是否覺得你的任何契約會限制你轉換為更多房地產所有權、承擔更多抵押貸款債務的能力？

Rich, yes, well, I mean it's the covenants that we've been talking about. Certainly, the total leverage ratio, and to some degree, the fixed charge ratio will govern what we can do as well as the overall capacity of the mortgage facility, we balance all three of those things.

里奇，是的，嗯，我的意思是這是我們一直在談論的聖約。當然，總槓桿率，在某種程度上，固定費用率將決定我們可以做什麼以及抵押貸款設施的整體能力，我們平衡所有這三件事。

Okay. So you may not be as aggressive here in this environment as you have been over the last few quarters?

好的。因此，在這種環境下，您可能不像過去幾個季度那樣積極進取？

I think that's a fair assumption.

我認為這是一個合理的假設。

Okay. Finally, housekeeping question, what was your lease expense for the quarter?

好的。最後，客房服務問題，您本季度的租賃費用是多少？

I'll have to dig that out. I'll send it to you -- I can send it to you separately, Rich.

我得把它挖出來。我會發給你——我可以單獨發給你，Rich。

Okay. Thank you.

好的。謝謝。

Thank you. Our next question comes from the line of Matt Nemer with Thomas Weisel Partners. Please go ahead.

謝謝。我們的下一個問題來自 Matt Nemer 與 Thomas Weisel Partners 的合作。請繼續。

Hey, good morning, everyone. My first question is if we could just go back to the credit availability topic, what are you seeing in terms of credit availability by brand? You've obviously seen some pretty interesting advertising out of Toyota and GM on credit availability. I'm just wondering if you could give us color on that.

嘿，大家早上好。我的第一個問題是，如果我們可以回到信用可用性主題，您對品牌的信用可用性有何看法？您顯然已經看到了豐田和通用汽車關於信貸可用性的一些非常有趣的廣告。我只是想知道你是否可以給我們一些顏色。

Yes, Matt, this is Earl. Toyota Financial Services continues to be well-funded and reasonably aggressive in the market, certainly compared to others. That said, all lenders, including TFS, have tightened up some of the requirements. Loan to values are not what they were a year ago or 6 months ago, which means down payment requirements are higher. And this is one of the real factors across the board, because you end up with the people who can't roll as much negative equity from a trade-in into a deal. People are required to come up with more down payments, and those are the types of things that are killing more deals than just outright rejections. That was the point Pete DeLongchamps wanted me to make on the previous question, which I missed. And we're seeing that across the board.

是的，馬特，這是厄爾。與其他公司相比，豐田金融服務公司在市場上繼續擁有充足的資金和合理的進取心。也就是說，包括 TFS 在內的所有貸方都收緊了一些要求。貸款價值與一年前或 6 個月前不同，這意味著首付要求更高。這是全面的真正因素之一，因為你最終會遇到無法將盡可能多的負資產從以舊換新轉化為交易的人。人們被要求支付更多的首付款，這些類型的事情會扼殺更多的交易，而不僅僅是直接拒絕。這就是 Pete DeLongchamps 希望我在上一個問題上提出的觀點，但我錯過了。我們正在全面看到這一點。

But Toyota is out there, as you know with zero percent, and they are well funded, but there are a lot of manufacturers who are not, for example, financing used vehicles that are not of their brand. You've read obviously about G-Max700, Beacon score requirement on new vehicles. And so when we get into the domestics, it gets even tougher, I think, and independent banks have pulled back. So a lot of times that is manifesting itself in the stipulations that they require on a deal, which just drives up down payments or monthly payments, and makes it harder to sell.

但是豐田在那裡，正如你所知，零百分比，他們資金充足，但有很多製造商沒有，例如，為非他們品牌的二手車融資。您顯然已經閱讀了有關 G-Max700 的信息，新車的 Beacon 分數要求。因此，當我們進入國內市場時，我認為情況會變得更加艱難，獨立銀行已經撤退。所以很多時候，這體現在他們對交易的規定中，這只會推高預付款或每月付款，並使其更難出售。

Any major change with BMW financial or Daimler? The luxury brands?

寶馬金融或戴姆勒有什麼重大變化嗎？奢侈品牌？

The biggest issue there is, particularly with BMW, they are trying to shift away from leasing. Their incentives are much more attractive now through traditional retail financing than leasing. So the luxury world is switching more just of [being] rates, and less to attractive lease payments. That's my take.

最大的問題是，尤其是寶馬，他們正試圖擺脫租賃。現在，通過傳統的零售融資，他們的激勵措施比租賃更具吸引力。因此，奢侈品世界正在更多地轉向 [being] 費率，而不是有吸引力的租賃付款。那是我的看法。

Okay. That's helpful. And then my second question was on service and parts, you mentioned that customer pay was down a little bit less than 1% on a same-store basis. What -- can you give us any more insight into what you are seeing on the field in terms of, A, their change during the quarter, did that get worse towards the end of the quarter? And then specifically, is it people neglecting to do very expensive repair work and so your labor is down, your parts are still high? Can you give us more color there?

好的。這很有幫助。然後我的第二個問題是關於服務和零件的，你提到客戶支付的同店費用下降了不到 1%。什麼 - 你能否讓我們更深入地了解你在現場看到的情況，A，他們在本季度的變化，在本季度末情況是否變得更糟？然後具體來說，是不是人們忽略了做非常昂貴的維修工作，所以你的勞動力減少了，你的零件仍然很高？你能給我們更多的顏色嗎？

Yes, this is Randy. Don't forget the hurricane impact, because that had a huge impact on our customer pay business. But also people are more frugal with the money they are spending. So some of the higher margin maintenance business, they are declining this time around. That puts pressures on our margins, but they'll be back, and we'll get to do that maintenance at another time. As far as it trended to the quarter, I think other than the hurricane impact, it is about the same.

是的，這是蘭迪。不要忘記颶風的影響，因為那對我們的客戶支付業務產生了巨大影響。但人們在花錢方面也更加節儉。所以一些利潤率較高的維護業務，這次他們正在下降。這給我們的利潤帶來了壓力，但他們會回來的，我們將在另一個時間進行維護。就本季度的趨勢而言，我認為除了颶風的影響外，情況大致相同。

Okay. And then --and turning to John's comments on CapEx, you mentioned that '09 would be down significantly versus '08, and I guess, I'm just wondering if you can get us a little bit more color than that on the construction line. Is that a line that can potentially go to zero or close to zero? Given where your stock is and your bonds, it seems like there would need to be a very high hurdle to complete a project versus buying in one of those other two parts or capital structure.

好的。然後——轉向 John 關於資本支出的評論，你提到 09 年會比 08 年顯著下降，我想，我只是想知道你是否能給我們帶來比施工線上更多的顏色.那是一條可能趨於零或接近於零的線嗎？考慮到你的股票和債券的位置，與購買其他兩個部分之一或資本結構相比，完成一個項目似乎需要一個非常高的障礙。

You're right, Matt, there's a much higher hurdle we need to look at now when we do these projects; but there are some projects for manufacturers -- and those are the ones we tend to be continuing at the moment -- where there's money involved in terms of reimbursement from the manufacturer and we have to calculate that in these financial evaluations. Mercedes, Nissan, General Motors, they actually pay a significant part of some of these facility actions. So that gets us over some of these hurdles; but that said, there will be a dramatic need for us to decrease CapEx next year, and I assume rough order of magnitude to be somewhere around half.

你是對的，馬特，當我們做這些項目時，我們現在需要考慮一個更高的障礙；但是有一些針對製造商的項目——這些是我們目前傾向於繼續進行的項目——其中涉及製造商報銷方面的資金，我們必須在這些財務評估中進行計算。梅賽德斯、日產、通用汽車，他們實際上為其中一些設施行動支付了很大一部分費用。這樣我們就可以克服其中的一些障礙；但話雖如此，我們明年將非常需要減少資本支出，我認為粗略的數量級約為一半。

And have the manufacturers been relatively understanding of the reduction in some of these projects, or I guess the delay in some of these projects?

廠家是否對其中一些項目的減少，或者我猜測其中一些項目的延遲，相對了解？

It's hard for me not to laugh when you ask that question, Matt. I would say perhaps some are better than others. Some are better than others, Matt.

當你問這個問題時，我很難不笑，馬特。我會說也許有些比其他的更好。有些比其他的好，馬特。

Got it. Sure enough. And then my last question is just back to the topic on capital allocation, I guess your restricted payments basket is down to just a couple million dollars. Does it make sense, given where your stock is, to potentially change the dividends and kind of refocus on stock buyback? Or does it make more sense to potentially try to pay down as much of the -- as much of the 8.25 notes as you can, so that you can relieve some of the RP basket pressure? What are you thinking about, about the best capital allocation here?

知道了。果然。然後我的最後一個問題又回到了資本配置的話題上，我猜你的受限支付籃子已經降到了幾百萬美元。考慮到你的股票情況，有可能改變股息並重新關注股票回購是否有意義？或者盡可能多地嘗試償還 8.25 票據是否更有意義，以便您可以減輕一些 RP 籃子壓力？你在想什麼，關於這裡最好的資本配置？

Matt, this is John Rickel. As kind of I said in my stated or in my prepared remarks, our number one priority for our cash is to continue to pay down debt and strengthen the balance sheet.

馬特，這是約翰里克爾。正如我在陳述或準備好的發言中所說，我們現金的首要任務是繼續償還債務並加強資產負債表。

Got it. That's all I've got, thanks very much.

知道了。這就是我所擁有的，非常感謝。

Thanks.

謝謝。

Thank you. At this time, I would like to turn the call back over to Earl Hesterberg for any closing remarks.

謝謝。此時，我想將電話轉回給 Earl Hesterberg 以聽取任何結束語。

Well, thanks to all of you for joining us today. We are looking forward to updating you on our fourth quarter earnings call in February. Thanks, and have a nice day.

好吧，感謝大家今天加入我們。我們期待在 2 月份的第四季度財報電話會議上向您通報最新情況。感謝，並有一個愉快的一天。

Ladies and gentlemen, this concludes the Group 1 Automotive third quarter earnings conference call. If you would like to listen to a replay of today's conference, please dial 303-590-3000, or 800-405-2236, with an access code of 11120953#. Thank you for your participation. You may now disconnect.

女士們，先生們，Group 1 Automotive 第三季度財報電話會議到此結束。如果您想收聽今天會議的重播，請撥打 303-590-3000 或 800-405-2236，接入碼為 11120953#。感謝您的參與。您現在可以斷開連接。