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Earnings Calls: 
AutoNation Earnings Call, Third Quarter 2008
Author: Albena Toncheva
123jump.com
Last Update: 1:43 PM ET November 14 2008

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Revenue fell 21% to $3.5 billion from $4.5 billion a year earlier. Industry wide new vehicle sales declined 31%, while AutoNation''s fell 24%, according to CNW Research. The domestic segment income was $23 million vs. $54 million in the year-ago period, with a 36% drop in new vehicle sales.


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Michael J. Short: It is not included in the leverage ratio test. The leverage ratio test is only on non-vehicle debt. The capitalization ratio test is on both non-vehicle debt and floor plan.

Rod Lache (Deutsche Bank North America): Any additional color on the outlook for the parts and service business? It has actually been quite stable up until recently. It looks like it’s moderating a bit. Is that something that you’re expecting to continue to moderate through next year or any thoughts based on your experience in that business?

Michael E. Maroone: Certainly we feel that there’s tremendous pressure on consumers in terms of their disposable income so I would expect some pressure. However, at the same time there’s got to be some pent up demand so as consumers gain more confidence we believe that business will come back. It’s been a very stable part of the industry for many, many years. Yes, we’ve got some short term pressure but I think it will be back and I think we’ll be just fine there.
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