Mike Jackson: If anything the multiples have gone higher because earnings by and large are down and prices have not changed. You are not seeing too many deals get done and I do not think there has been a reflection on the part of the sellers where we are in the cycle, the fact that the cycle is a reality that has to be factored into the pricing when you acquire something. Right now there is a gap between sellers and buyers. s of this moment the sellers have not reduced prices.

Colin Langan (UBS): What do you think about strategically given the market conditions?

Mike Jackson: We are always optimizing the portfolio, and we are well into concentrating on high throughput stores and divesting marginal stores. There is still some of that to do. We are in the best shape ever as far as our portfolio.

Colin Langan (UBS): Retail basis outperformed the market in general which is something in a down market you tended not to do because you are not willing to give in on the price which from where your margins is it sounds like you are willing to take on the margin in order to get some volume. Is that a new strategy for you or is this going to be a change in the way going forward?

Mike Jackson: I would first say overall that the environment is so difficult out there it is hard to separate the impact of the stress on what part is on volume and what part is on margin.

Mike Short: The way to look at it is that we started this process about two years ago. California started to slip about two years ago, so we are ahead of the curve and we have focused on an intense training program with our sales associates focused on our three channels of business that is e-com, phone, and walk-in, and developed specific processes of how to handle those customers. I believe that we are executing better than we had in the past. In terms of a change in strategy, no, we still want to go after profitable market share.

Colin Langan (UBS): The margin in this quarter is that a one-time thing or is that a rate for the rest of the year?

Mike Short: Margins and volume will be under pressure till we get into a more stable period. We are deep into the cycle now of decline. We were the tip of the sphere with Florida, California, followed by Nevada and Arizona. If you take the declines of 2006, 2007, and what it looks like in 2008, you are into a 22%-23% decline in retail. We are deep into the cycle. When you get this far into it, it is the most difficult. Now, medicine is on the way. We have interest cuts. Actions are being taken to stabilize the credit markets, and all that will work their way into the system, but it is the fall before we feel the benefit of that and in the meantime I think both volume and margins will be under significant pressure.

Colin Langan (UBS): Your parts and services sales growth is lower than expected. Was that driven mostly by the decline in warranty and was there a particular brand that was weak in the warranty side?

Mike Maroone: We just stated earlier, but our customer pay was up 2.4%, our warranty was down 2%. I do not think there was any brand that stuck out from a warranty decline. I think all of the manufacturers have worked hard on their quality and we are seeing it reflected over the last two to three years in warranty declines although the warranty declines are less than they have been in the past, so it indicates that that revenue stream is stabilizing.

Colin Langan (UBS): Going into the rest of the year is the warranty issue still going to be an issue or it is one particular brand?

Mike Jackson: The trend is for more stability and warranty revenue. I do not want to try and predict the next few quarters because it is reliant on product rollouts and other factors. I do think there is opportunity for us to continue to improve our customer pay business both in terms of traffic and in terms of dollars per repair order and we are working hard at doing that.

Rick Nelson (Stephens): What are you seeing in April and how might that compare to the March results?

Mike Short: Since March is over, we can talk about March. Usually the last two weeks of March signify the arrival of the spring market and you see a strong surge in business. That did not happen this year. And whether it was the economy, but also everybody freaked out over the Bear Stearns situation or whether Easter moved into March and nobody – that is not a big shopping day, it is hard to say. Business did not come to life at the end of March as it usually does. It is uncertain to predict how April will end up and whether that pick-up is now occurring in the beginning of April, I am hesitant to say. The months are simply too unpredictable and unstable for me to put a stake in the ground.

Rick Nelson (Stephens): The manufacturers are talking about consolidating the dealer base. Are you seeing any evidence that that is taking place?

Mike Jackson: We have been arguing for it since the day I arrived knowing that it was essential that it would happen. It finally is moving at a faster pace than just the dribble that we have had the last several years. They have embraced it as a strategy, they understand the implications if they can not get it done to their business. We are able to do a lot more today than we have not been able to do in the past. Having said that though, it is a huge gap or a huge overcapacity issue that they are just beginning to address that is even with their best efforts it is still going to take some time.

Rick Nelson (Stephens): It looks like in the luxury segment you increased your brand proportion of sales with BMW and Lexus, but Mercedes slipped. Is that geography that contributed to that?

Mike Jackson: It is absolutely geography. Our Mercedes presence is primarily in California and Florida.

David Lim (Wachovia): Can you talk about your CPO performance in the quarter?

Mike Maroone: We do not call it out as a separate line item, but I will tell you it is a focus of our business. We believe there is opportunity on the CPO along with the C car side which is the much less expensive product. We are working hard at those. There are a lot of vehicles coming off lease especially on the luxury side. We see it as a big opportunity and it is a big focus in our used car initiative.