2 

 
 
 
 

Webinar Series



Key Performance Indicators
(KPI) for Parts Managers
De‐Mystifying the Financial Statement!

Thursday, November 14th, 2013

Presented by
Sebastiano Banchitta, CPA
and Rob Campbell, Analyst
The Mironov Group, LLC
CPAs and Automotive Consultants

Welcome and Agenda! 
 
The Key Performance Measurements in Parts, how to calculate them, what they mean and how 
to improve them. 
 
 Financial Performance 
 Inventory Performance 
 
______________________________________________________________________________ 
 
______________________________________________________________________________ 
 
______________________________________________________________________________ 
 

   

                                                                                       Page   2 
11NOV13 10:46 HOT DOG HONDA MOTORS HDH-I
(RGPS) Gross Profit by Source (01OCT13-31OCT13) Page No: 1
<---------- 31OCT13 ----------> <------- Period to Date Totals -------->
Total Total Gross Gross Total Total Gross Gross
Source Sales Cost Profit Profit% Sales Cost Profit Profit%
------ ------- ------- ------- ------- ---------- ---------- ---------- -------
500 0.00 N/A 119.11 22.49
0.00 0.00 153.69 34.58
600 77.89 51.48 5,441.86 41.68
160.54 82.65 9,332.28 3,890.42
601 2,025.75 37.93 24,688.62 41.07
3,264.15 1,238.40 41,900.93 17,212.31
602 272.33 36.15 15,237.96 42.67
426.53 154.20 26,580.36 11,342.40
603 206.93 35.49 6,883.82 48.27
320.82 113.89 13,307.87 6,424.05
604 97.24 51.27 3,627.59 57.38
199.58 102.34 8,513.31 4,885.72
605 652.13 51.13 23,642.61 51.42
1,334.55 682.42 48,673.35 25,030.74
800 65.00 16.66 15,135.00 18.42
78.00 13.00 18,554.00 3,419.00
900 896.20 61.16 17,226.15 52.86
2,307.63 1,411.43 36,544.54 19,318.39
999 0.00 N/A 1.18 99.33
0.00 0.00 177.00 175.82
------ ------- ------- ------- ------- ---------- ---------- ---------- -------
Totals 4,293.47 46.94 112,003.90 45.02
8,091.80 3,798.33 203,737.33 91,733.43
  

Year‐to‐date sales of $1,737,024 with a gross of $733,374 
 
 
 
 
 
Our Profile averages – 
 
Honda store 
CP – 42%    Express – 34% 
Wty – 28%    Internal – 35% 
Counter – 35%   Wholesale Collision – 17% 
Wh.sale Mech – 22%  Tires – 15% 
GOG – 30%  
 
 

______________________________________________________________________________ 
 
______________________________________________________________________________ 
 
______________________________________________________________________________ 
 
 

 
 
Net‐to‐Sales     $187,742   ÷   $1,737,024  = 10.8% 
 
Net‐to‐Gross     $187,742   ÷   $733,374  = 25.6% 
______________________________________________________________________________ 
 
______________________________________________________________________________ 
 
______________________________________________________________________________ 
 

                                                                                       Page   3 
Cost of sale and variations 
 

 
______________________________________________________________________________ 
 
______________________________________________________________________________ 
 
______________________________________________________________________________ 
 
 
Matrix and Mark‐ups 
Selling Price = Cost ÷ (1 – Desired Gross Profit) 
$100 part,  35% gross                $100 ÷ (1 – .35) 
$100 ÷ .65 = $153.85                    $53.85  ÷ $153.85 = 35% 
 
• Matrix should intersect with mark‐up and unit/volume sales  
 
______________________________________________________________________________ 
 
______________________________________________________________________________ 
 
______________________________________________________________________________ 
 
 
Personnel Expenses 
 

 
 
______________________________________________________________________________ 
 
______________________________________________________________________________ 
 
______________________________________________________________________________ 
 

                                                                                       Page   4 
Staffing Levels 
 
 Gross per departmental employee 
 Gross per counterperson 
 Piece movement 
 
______________________________________________________________________________ 
 
______________________________________________________________________________ 
 
______________________________________________________________________________ 
 
Semi‐Fixed/Operating Expense 
 

 
 
______________________________________________________________________________ 
 
______________________________________________________________________________ 
 
Getting back to Net 
– Gross  ‐  Expenses  (personnel, semi‐fixed, fixed)  =  Net 
– 100%  ‐  (35%  +  33%  +  12%)  =  20% 
______________________________________________________________________________ 
 
______________________________________________________________________________ 
 
______________________________________________________________________________ 
 

                                                                                       Page   5 
Inventory measurements 
 
Gross Turn – Ratio of sales to inventory 
Sales (at cost) for 12 months  ÷   Inventory 
 
… Or days supply 
    365 (days)  ÷   Turns  
 
True Turn – Ratio of purchases to inventory  (“stocked inventory turns”) 
Stock Order Purchases (at cost) for 12 months  ÷   Inventory 
 
______________________________________________________________________________ 
 
______________________________________________________________________________ 
 
______________________________________________________________________________ 
 
 
NS parts and their impact 
 
NS Inventory $ ÷  Total Inventory $ 
 
NS Parts Sales Efficiency 
(Month’s NS Sales  ÷  Month’s NS Receipts)  x  100  
 
______________________________________________________________________________ 
 
______________________________________________________________________________ 
 
______________________________________________________________________________ 
 
Inventory Age 
 
Current     _______ 
Technically Obsolete  _______ 
Obsolete     _______ 
 
______________________________________________________________________________ 
 
______________________________________________________________________________ 
 
______________________________________________________________________________ 
 

                                                                                       Page   6 
Level of Service  
 
The R&R definition 
YTD Total Sales (at Cost)   ‐   YTD Emergency, Orders, Lost(non‐stock) 
  ÷ 
YTD Total Sales (at Cost)   +   YTD Lost Sales 
 
The ADP definition (Sales Closing Ratio) 
Sales Closing Ratio  =  (Net Sales  ÷  Total Demand)  x  100 
Total Demand  =  Net Sales  +  Lost Sales 
 
______________________________________________________________________________ 
 
______________________________________________________________________________ 
 
______________________________________________________________________________ 
 
 
 
THANKS FOR LISTENING!! 
 
 
You can reach me at anytime   rcampbell@mironovgroup.com 
 
 
 
 
 
 
 
 
 

                                                                                       Page   7 
15OCT2013 10:34:13 CAMPBELL CADILLAS OF NEW JERSEY CCN-I
302SEP013 Month End SEP 2013 MONTHLY SUMMARY REPORT Page 1
Grand Total
NBR OF PARTS PERCENT PARTS PIECES PERCENT PARTS COST PERCENT
------------ ------- ------------ ------- -------------- -------
Inventory Balance 21,275 13,044 255,764.88
Active Parts 1,604 7.53 7,188 55.10 124,121.31 48.52
NS Parts 17,337 81.49 1,913 14.66 43,440.79 16.98
MO Parts 1 0.00 15 0.11
AP Parts 1,938 9.10 3,541 27.14 78,752.96 30.79
DP Parts 167 0.78 387 2.96 9,449.82 3.69
SP Parts
DEL Parts 228 1.07
Parts With No Cost 72 0.33 25 0.19
Parts With Negative On-Hand 19 0.08 145 -1,330.14
Core/Exchange 82 0.38 120 0.91 10,952.00
Memos On File 2,045
Parts Added 657 3.08 95 0.72 3,174.59 1.24
Active Parts 8 1.21 13 13.68 828.08 26.08
NS Parts 649 98.78 82 86.31 2,346.51 73.91
MO Parts
AP Parts
DP Parts
SP Parts
Parts & Memos Deleted 149
Inventory Movement - Sales
0 to 3 Months 4,667 21.93 7,661 58.73 120,492.68 47.11
4 to 6 Months 2,143 10.07 1,046 8.01 24,952.60 9.75
7 to 12 Months 3,442 16.17 1,342 10.28 34,235.74 13.38
Over 12 Months 8,543 40.15 2,502 19.18 63,839.75 24.96
New Parts No Sales 2,480 11.65 493 3.77 12,244.11 4.78
Inventory Movement - Receipts
0 to 3 Months 4,649 21.85 6,879 52.73 122,957.64 48.07
4 to 6 Months 2,226 10.46 1,274 9.76 34,257.98 13.39
7 to 12 Months 3,560 16.73 1,948 14.93 35,970.49 14.06
Over 12 Months 8,478 39.84 2,868 21.98 62,025.59 24.25
New Parts No Receipts 2,362 11.10 75 0.57 553.18 0.21
Outstanding Orders 61 0.28 1,166 7,853.77
Stockorders 41 67.21 1,138 97.59 5,578.85 71.03
Supplemental Orders
Customer Orders 12 19.67 15 1.28 1,613.65 20.54
Backorders 10 16.39 13 1.11 661.27 8.41
Stockorder Backorders 2 3.27 5 0.42 249.85 3.18
Supplemntl Backorders
Customer Backorders 8 13.11 8 0.68 411.42 5.23
Outstanding Forced Orders
15OCT2013 10:34:13 CAMPBELL CADILLACS OF NEW JERSEY CCN-I
30SEP2013 Month End SEP 2013 MONTHLY SUMMARY REPORT Page 2
Grand Total
NBR OF PARTS PERCENT PARTS PIECES PERCENT PARTS COST PERCENT TRANS COUNT
------------ ------- ------------ ------- -------------- ------- -----------
Gross Sales 1,865 8.76 7,571 198,025.80 4,422
Regular 1,691 90.67 6,862 90.63 176,242.25 88.99 4,031
No History
Drop Ship
Wholesale 226 12.11 703 9.28 21,044.35 10.62 385
Wholesale No History
Wholesale Drop Ship
Warranty 6 0.32 6 0.07 739.20 0.37 6
Warranty No History
Warranty Drop Ship
Lost Sales 75 0.35 122 7,695.22 77
Return Sales 356 1.67 887 28,930.86 432
Regular 308 86.51 700 78.91 25,910.34 89.55 371
No History
Defective
Wholesale 49 13.76 187 21.08 3,020.52 10.44 61
Wholesale No History
Wholesale Defective
Warranty
Warranty No History
Warranty Defective
Receipts 1,565 7.35 7,068 181,059.57 2,076
Stockorders 398 25.43 1,322 18.70 28,720.40 15.86 584
Supplemental Orders
Customer Orders 847 54.12 1,236 17.48 76,730.03 42.37 883
Emergency Purchases 37 2.36 54 0.76 2,118.54 1.17 38
Other Receipts 475 30.35 4,456 63.04 73,490.60 40.58 571
Overages
Net Adjustments 151 0.70 420 -9,694.26 170
Plus 21 13.90 36 8.57 1,310.67 30
Minus 130 86.09 384 91.42 -11,004.93 140
Factory Returns
Net Appreciation 11 0.05 107 0.82 -400.08 36
Positive 1 9.09 51 47.66 4.80 10
Negative 10 90.90 56 52.33 -404.88 26
Parts Updated With Cost 2 0.00 2
Parts With Comments 345
Misc & Sublet Items
Gross Sales
Lost Sales
Return Sales 1 0.01 1
Parts Not On File, But Sold
Gross Sales 3 368.01 4
Lost Sales
Return Sales 2 2
15OCT2013 10:34:13 CAMPBELL CADILLACS OF NEW JERSEY CCN-I
30JSEP2013 Month End SEP2013 ANNUAL ACTIVITY & BENCHMARK TREND REPORT Page 1
Grand Total
YEAR-TO-DATE YEAR-TO-DATE LAST 12 MONTHS LAST 12 MONTHS
SEPTEMBER 2013 TOTAL AVERAGE TOTAL AVERAGE
-------------- -------------- -------------- -------------- --------------
Number of Parts 21,275 120,086 20,014 221,481 18,457
Parts Pieces 13,044 79,009 13,168 144,637 12,053
Parts Cost 255,764.88 1,505,598.53 250,933.09 3,033,628.97 252,802.41
Parts With Negative OH -1,330.14 -9,954.79 -1,659.13 -22,140.35 -1,845.03
Core/Exchange 10,952.00 67,534.00 11,255.67 148,258.00 12,354.83
Gross Sales 198,025.80 1,221,930.85 203,655.14 2,504,325.99 208,693.83
Net Sales 169,094.94 1,037,093.53 172,848.92 2,066,815.49 172,234.62
Lost Sales 7,695.22 63,489.56 10,581.59 120,278.31 10,023.19
Outstanding Orders 7,853.77 83,530.14 13,921.69 171,809.70 14,317.48
Total Receipts 181,059.57 1,118,729.35 186,454.89 2,251,885.83 187,657.15
Customer Orders 76,730.03 460,157.21 76,692.87 894,308.12 74,525.68
Emergency Purchases 2,118.54 5,705.18 950.86 10,526.63 877.22
Net Adjustments -9,694.26 -87,264.22 -14,544.04 -207,865.09 -17,322.09
Net Appreciation -400.08 361.18 60.20 1,436.16 119.68
NS Parts
Number of Parts 17,337 100,326 16,721 182,260 15,188
Parts Pieces 1,913 10,566 1,761 18,739 1,562
Parts Cost 43,440.79 270,609.43 45,101.57 537,053.40 44,754.45
Gross Sales 122,572.23 702,709.36 117,118.23 1,412,838.87 117,736.57
Net Sales 104,309.41 608,450.12 101,408.35 1,166,127.42 97,177.29
Lost Sales 5,763.47 54,704.89 9,117.48 99,909.95 8,325.83
Outstanding Orders 1,425.76 30,105.41 5,017.57 69,514.85 5,792.90
Receipts 115,151.22 663,473.06 110,578.84 1,310,648.78 109,220.73
Inventory Movement - Sales
0 to 3 Months 120,492.68 691,386.90 115,231.15 1,425,073.72 118,756.14
4 to 6 Months 24,952.60 181,854.29 30,309.05 377,496.62 31,458.05
7 to 12 Months 34,235.74 217,102.02 36,183.67 540,293.27 45,024.44
Over 12 Months 63,839.75 317,564.76 52,927.46 456,685.08 38,057.09
New Parts No Sales 12,244.11 97,690.56 16,281.76 234,080.28 19,506.69
Non-Productive Parts
Excess Stock MNS < 12 71,214.05 428,354.84 71,392.47 869,005.03 72,417.09
Stock MNS > 11 51,688.90 279,179.68 46,529.95 456,539.26 38,044.94
NS Parts Not Sold 37,840.68 227,539.74 37,923.29 433,168.60 36,097.38
New Obsolescence
Stock 9 Months 2,398.41 25,143.46 4,190.58 75,462.11 6,288.51
NS Parts 2 Months 2,097.29 21,595.73 3,599.29 49,998.38 4,166.53
Early Phase In
NS Parts With YRSL > 2 1,221.51 10,256.10 1,709.35 27,887.70 2,323.98
True Turn 4.23 4.55 4.60
Purchase to Stock Ratio
By Number of Parts 43.51 43.31 43.59
By Piece 81.74 81.98 82.12
By Cost 56.45 58.35 59.81
Sales Closing Ratio
By Number of Parts 95.26 93.83 93.81
By Piece 98.20 98.07 98.16
By Cost 95.64 94.23 94.50
Demand Filled from Stock Ratio
By Number of Parts 39.45 38.19 38.29
By Piece 79.25 78.11 79.25
By Cost 51.04 51.90 53.12
NS Parts Sales Efficiency 106.44 105.91 107.79
AUTO/MATE, INC. COMPANY: CAMPBELL'S CRAZY CHRYSLERS RUN DATE: 10/17/2013
EOMCLOSE PARTS INVENTORY / POS RUN TIME: 11:09
PAGE 1 INVENTORY MANAGEMENT REPORT - RPT ONLY RUN BY: RUN_DMC

ANALYSIS FOR MONTH ENDING 10/17/2013 VENDOR = chry

No. of % VALUE % ON-HAND R E C E I P T S
Parts Piece STOCKS SPECIALS
Count PT Ct. Pc. Ct. Value PT Ct. Pc. Ct. Value
INVENTORY ------------------------- ------------------------
ACTIVE PARTS 1304 19.1 112135.40 47.3 6570
AUTO PHASE-OUT PARTS 3025 44.3 94221.62 39.7 4641
DEALER PHASE-OUT PARTS 0 0.00 0
MANUAL ORDER PARTS 5 .1 -93.50 -1
NON-STOCK PARTS 2495 36.5 30827.77 13.0 1691
TOTAL INVENTORY 6829 100.0 237091.29 100.0 12901
CLEAN CORES VALUE 49 5215.03 69
INVENTORY WITH CLEAN CORES 0 242306.32 0

SALES (AT COST)

ACTIVE PARTS 341 65.3 32157.39 64.1 2638
AUTO PHASE-OUT PARTS 30 5.7 1194.00 2.4 51
DEALER PHASE-OUT PARTS 0 0.00 0
MANUAL ORDER PARTS 0 0.00 0
NON-STOCK PARTS 151 28.9 16851.91 33.6 331
TOTAL SALES (AT COST) 522 100.0 50203.30 100.0 3020

TOTAL LOST SALES 2 293.50 2

TOTAL EMERGENCY PURCHASES 0 0.00 0
LEVEL OF SERVICE 99.6 99.4

INVENTORY BY SOURCE
SRC 001 2 21.50 10 1 10 9.00 0 0 0.00
SRC 100 CHRYSLER STANDARD 5263 77.1 166309.84 70.1 7575 256 847 20802.80 220 377 22316.25
SRC 200 AFTERMARKET 13 .2 348.84 .1 178 0 0 0.00 0 0 0.00
SRC 500 BULK OIL 3 4979.49 2.1 2090 0 0 0.00 0 0 0.00
SRC 600 TIRES 109 1.6 19562.00 8.3 128 3 9 1181.25 4 8 972.50
SRC 700 TIRE TAX 2 0.46 46 0 0 0.00 0 0 0.00
SRC 800 STORE MERCHANDISE/ 1 28.10 1 0 0 0.00 0 0 0.00
SRC 888 CHRYSLER PARTS TO 1416 20.7 38330.05 16.2 2634 7 33 149.45 7 16 194.00
SRC 900 SUPPLIES 20 .3 7511.01 3.2 241 0 0 0.00 0 0 0.00

SALES (AT COST) BY SOURCE

SRC 100 CHRYSLER STANDARD 481 91.1 38905.95 76.1 1261
SRC 200 AFTERMARKET 3 .6 89.27 .2 93
SRC 500 BULK OIL 3 .6 3159.01 6.2 1441
SRC 600 TIRES 12 2.3 5977.50 11.7 43
SRC 700 TIRE TAX 1 .2 0.46 46
SRC 888 CHRYSLER PARTS TO 17 3.2 332.70 .7 42
SRC 900 SUPPLIES 11 2.1 2674.32 5.2 87

SALES MOVEMENT
Month To Date 528 7.7 34616.63 14.6 4010
NO-SALE 1 TO 3 MONTHS 1954 28.6 67719.74 28.6 2186
NO-SALE 4 TO 6 MONTHS 1124 16.5 28167.95 11.9 1337
NO-SALE 7 TO 9 MONTHS 823 12.1 22221.25 9.4 1076
NO-SALE 10 TO 12 MONTHS 678 9.9 15190.99 6.4 427
NO-SALE OVER 12 MONTHS 1722 25.2 69174.73 29.2 3865

STATUS CHANGES & PARTS DROPPED

PARTS PHASED IN 0 0.00 0
PARTS PHASED OUT 216 5881.25 101
PARTS DROPPED 180 0.00 0
AUTO/MATE, INC. COMPANY: CAMPBELL'S CRAZY CHRYSLERS RUN DATE: 10/17/2013
EOMCLOSE PARTS INVENTORY / POS RUN TIME: 11:09
PAGE 2 INVENTORY MANAGEMENT REPORT - RPT ONLY RUN BY: RUN_DMC

ANALYSIS FOR MONTH ENDING 10/17/2013 VENDOR = chry

DataPoint Description
DP1 RO Off the Shelf Fill % 97.2 %
DP2 Total Idle Capital % 31.3 %
DP3 Negative On Hand 12290.65
DP4 Parts with no Bin .00
DP5 Parts with no Cost 8
DP6 Monthly Closing Inventory Value 237091.29
DP7 Lost Sales 293.50
DP8 True Turns(((R-S)*12/Y)*(V/100) 1.2394

DSP Totals
Line Description
A Number of Stocks Status Parts on ROs 1003
B Number of Stocks Status Filled OSF 975
C RO Off the Shelf Fill % (B/A)*100 97.2 %
D Value of Stocking Parts with MNS 6-11 15626.10
E Value of Stocking Parts with MNS 12+ 279.10
F Value of Non-Stock Parts with MNS 3-5 14475.90
G Value of Non-Stock Parts with MNS 6-8 11172.45
H Value of Non-Stock Parts with MNS 9-11 17036.30
I Value of Non-Stock Parts with MNS 12+ 73964.77
J Total Idle Capital %((E+I)/Y)*100 31.3 %
K Number of Parts with Negative O.H. 120
L Value of Parts with Negative O.H. 12290.65
M Number of Parts with No Bin
N Value of Parts with No Bin .00
O Number of Parts with No Cost 8

Month to Date Totals (Current through

P Number of Parts/Trans with Lost Sales 2
Q Value of Lost Sales 293.50

Monthly Totals for (Month) Closed on

R Monthly Cost of Sales 50203.30
S Monthly Returns 255.30
T Monthly Stock Order Receipts 22142.50
U Monthly Receipts 45625.25
V Stock Order Utilization (T/U)*100 48.5 %
W Month Close Inventory - Stock Parts 112135.40
X Month Close Inventory- Non-Stock Parts 124955.89
Y Month Close Inventory - All Parts 237091.29
AUTO/MATE, INC. COMPANY: CAMPBELL'S CRAZY CHRYSLERS RUN DATE: 10/17/2013
EOMCLOSE PARTS INVENTORY / POS RUN TIME: 11:09
PAGE 3 INVENTORY MANAGEMENT REPORT - RPT ONLY RUN BY: RUNDMC

ANALYSIS FOR MONTH ENDING 10/17/2013

SALES BY TYPE SALES COST W-COMP PROFIT

1 RETAIL 5872.65 3836.35 0.00 2036.30
2 WHOLESALE 20 2433.72 1877.65 11.34 567.41
3 WHOLESALE 30 2618.43 2249.80 4.34 372.97
4 INTERNAL 387.05 301.25 0.00 85.80
5 EMPLOYEE 1003.44 915.85 0.00 87.59
6 0.00 0.00 0.00 0.00
7 0.00 0.00 0.00 0.00
8 0.00 0.00 0.00 0.00
TOTAL 12315.29 9180.90 15.68 3150.07

9 RO CUST PAY 29183.52 19096.11 0.00 10087.41

10 RO WARRANTY 11419.14 7023.24 0.00 4395.90
11 RO INTERNAL 14916.16 12203.73 0.00 2712.43
12 RO SVC CONT 3040.13 1905.88 0.00 1134.25
13 RO EMPLOYEE 116.18 99.98 0.00 16.20
14 RO MENU 0.00 0.00 0.00 0.00
15 RO COST 2537.74 2478.47 0.00 59.27
TOTAL 61212.87 42807.41 0.00 18405.46
10/19/2013 MONTHLY ANALYSIS 2213
11:53:16 STORE 01 BRANCH 01 MIRONOV MOTORS MM/YY 9/13 PAGE 1
SUMMARY

COST OF SALES PARTS PARTS% PIECES MTD MTD% YTD

--------------------------------------- ------- ------ ------- -------------- ----- --------------
NORMAL STOCK PARTS 8865 70.9% 14751 436514.67 38.6% 4558002.68
AUTOMATIC PHASEOUT (AP) PARTS 416 3.3% 585 37693.59 3.3% 359605.03
DEALER PHASEOUT (DP) PARTS 1 0.0% 2 122.00 0.0% 247.95
MANUAL ORDER (MO) PARTS 450 3.6% 2297 8577.71 0.7% 65917.88
NON-STOCK (NS) PARTS 2696 21.5% 3485 249525.65 22.0% 2813119.21
NO PHASEOUT (NP) PARTS 0 0.0% 0 0.00 0.0% 0.00
OBSOLETE (OB) PARTS 0 0.0% 0 0.00 0.0% 0.00
REPLACED BY HOLD (RBH) PARTS 31 0.2% 35 1250.79 0.1% 29328.96
SOLD NOT STOCKED 38 0.5% 43 396496.14 35.3% 3320395.56
------------------------------- ------- ------ ------- -------------- ----- --------------
TOTAL COST OF SALES 12497 100.0% 21198 1130180.55 100.0% 11146617.27

LOST SALES (MEMO) 15 17 795.05 30597.14

CREDIT/RETURNS (MEMO) 604 811 33395.82 337453.39
UNUSUAL SALES (MEMO) 0 0 0.00 0.00

INVESTMENT PARTS PARTS% PIECES EXT VALUE VALUE%

--------------------------------------- ------- ------ ------- -------------- ------
NORMAL STOCK PARTS 9763 14.2% 12124 354866.16 38.1%
AUTOMATIC PHASEOUT (AP) PARTS 4641 6.7% 13933 332033.25 35.7%
DEALER PHASEOUT (DP) PARTS 12 0.0% 31 909.18 0.0%
MANUAL ORDER (MO) PARTS 56 0.0% 1046 5735.88 0.6%
NON-STOCK (NS) PARTS 54003 78.7% 4209 217230.56 23.3%
NO PHASEOUT (NP) PARTS 0 0.0% 0 0.00 0.0%
OBSOLETE (OB) PARTS 0 0.0% 0 0.00 0.0%
REPLACED BY HOLD (RBH) PARTS 132 0.4% 601 18391.85 2.3%
------------------------------- ------- ------ ------- -------------- ------
TOTAL INVESTMENT 68607 100.0% 31944 929166.88 100.0%

DIRTY CORE INVENTORY 99 390 26766.00

NEW CORE INVENTORY 40 59 9944.00

ACCUM ACCUM
ACTIVITY PARTS PARTS% PARTS% EXT VALUE VALUE% VALUE%
--------------------------------------- ------- ------ ------ -------------- ------ ------
CURRENT 7001 10.2% 10.2% 175976.63 18.9 18.9%
1-3 MONTHS 13748 20.0% 30.2% 257141.92 27.6 46.5%
4-6 MONTHS 8820 12.8% 43.0% 100812.99 10.8 57.3%
7-9 MONTHS 7284 10.6% 53.6% 91041.13 9.7 67.0%
10-12 MONTHS 6416 9.3% 62.9% 60420.70 6.5 73.5%
13-24 MONTHS 20441 29.7% 92.6% 149073.03 16.0 89.5%
25 MONTHS OR MORE 4897 7.4% 100.0% 94700.48 10.5 100.0%
10/19/2013 MONTHLY ANALYSIS 2213
11:53:16 STORE 01 BRANCH 01 MIRONOV MOTORS MM/YY 9/13 PAGE 2
SUMMARY

OUTSTANDING ORDERS PARTS PARTS% PIECES EXT VALUE VALUE%

--------------------------------------- ------- ------ ------- -------------- ------
STOCK ORDER 364 42.9% 2114 52104.25 45.2%
STOCK ORDER - BACKORDER 4 0.4% 4 351.46 0.3%
STOCK ORDER - CROSS SHIP 4 0.4% 12 159.53 0.1%
SUPPLEMENTAL ORDER 0 0.0% 0 0.00 0.0%
SUPPLEMENTAL ORDER - BACKORDER 0 0.0% 0 0.00 0.0%
SUPPLEMENTAL ORDER - CROSS SHIP 0 0.0% 0 0.00 0.0%
CUSTOMER ORDER 398 46.9% 565 34341.33 29.8%
CUSTOMER ORDER - BACKORDER 61 7.2% 315 27434.88 23.8%
CUSTOMER ORDER - CROSS SHIP 16 1.8% 19 820.05 0.7%
EMERGENCY PURCHASES 0 0.0% 0 0.00 0.0%
OTHER ORDERS 0 0.4% 0 0.00 0.1%
------------------------------- ------- ------ ------- -------------- ------
TOTAL OUTSTANDING ORDERS 847 100.0% 3029 115211.50 100.0%

PROCESSED ORDERS PARTS PARTS% PIECES MTD MTD% YTD

--------------------------------------- ------- ------ ------- -------------- ----- --------------
STOCK ORDER 1260 16.4% 8463 152915.67 22.7% 2043428.27
STOCK ORDER - BACKORDER 0 0.0% 0 0.00 0.0% 301.45
STOCK ORDER - CROSS SHIP 0 0.0% 0 0.00 0.0% -44.13
SUPPLEMENTAL ORDER 0 0.0% 0 0.00 0.0% 0.00
SUPPLEMENTAL ORDER - BACKORDER 0 0.0% 0 0.00 0.0% 0.00
SUPPLEMENTAL ORDER - CROSS SHIP 0 0.0% 0 0.00 0.0% 0.00
CUSTOMER ORDER 6399 83.5% 8907 519943.19 77.2% 5358869.47
CUSTOMER ORDER - BACKORDER 0 0.0% 0 0.00 0.0% -2939.93
CUSTOMER ORDER - CROSS SHIP 0 0.0% 0 0.00 0.0% -3666.24
EMERGENCY PURCHASES 0 0.0% 0 0.00 0.0% 0.00
OTHER ORDERS 0 0.1% 0 0.00 0.1% 0.00
------------------------------- ------- ------ ------- -------------- ----- --------------
TOTAL PROCESSED ORDERS 7659 100.0% 17370 672858.86 100.0% 7395948.89
FORCED ORDERS 0 0 0.00 35512.38

RECEIPTS PARTS PARTS% PIECES MTD MTD% YTD

--------------------------------------- ------- ------ ------- -------------- ----- --------------
STOCK ORDER 1856 21.8% 10401 146808.48 13.7% 2166001.70
STOCK ORDER - BACKORDER 10 0.1% 39 1292.32 0.1% 9750.43
STOCK ORDER - CROSS SHIP 11 0.1% 13 71.76 0.0% 5279.92
SUPPLEMENTAL ORDER 0 0.0% 0 0.00 0.0% 0.00
SUPPLEMENTAL ORDER - BACKORDER 0 0.0% 0 0.00 0.0% 0.00
SUPPLEMENTAL ORDER - CROSS SHIP 0 0.0% 0 0.00 0.0% 0.00
CUSTOMER ORDER 5997 70.6% 8196 468393.85 43.7% 4841455.04
CUSTOMER ORDER - BACKORDER 412 4.8% 547 38226.28 3.5% 333404.25
CUSTOMER ORDER - CROSS SHIP 61 0.7% 69 7317.98 0.6% 120745.70
EMERGENCY PURCHASES 0 0.0% 0 0.00 0.0% 240.84
OTHER ORDERS 139 1.9% 159 408522.75 38.4% 3577041.95
------------------------------- ------- ------ ------- -------------- ----- --------------
TOTAL RECEIPTS 8486 100.0% 19424 1070633.42 100.0% 11053919.83

PURCHASES DISCOUNT 27 179 742.84 2535.94

10/19/2013 MONTHLY ANALYSIS 2213
11:53:16 STORE 01 BRANCH 01 MIRONOV MOTORS MM/YY 9/13 PAGE 3
SUMMARY

ADDS/DELETES/ADJUSTS PARTS PIECES MTD YTD

--------------------------------------- ------- ------- -------------- --------------
ADDED PARTS 1952 8 1135.53 1430.66
DELETED PARTS 1429 0 0.00 -139.47
MINUS ADJUSTMENTS 41 -154 -2282.66 -37626.26
PLUS ADJUSTMENTS 22 114 1759.86 30023.73
PHYSICAL INVENTORY ADJUSTMENTS 0 0 0.00 0.00
RETURNED PARTS 0 0 0.00 -36092.13
RETURNED CORE PARTS 0 0 0.00 0.00
NEGATIVE BALANCE ADJUSTMENTS 661 114 1422.60 5812.16
COST PRICE ADJUSTMENTS 26 22 -81.50 -2275.82
INVENTORY REALLOCATION 0 0 0.00 0.00
------------------------------- ------- ------- -------------- --------------
TOTAL ADDS/DELETES/ADJUSTS 4131 104 1953.83 -38867.13

APPRECIATION/FIRST PRICING PARTS PIECES MTD YTD

--------------------------------------- ------- ------- -------------- --------------
APPRECIATION - FACTORY MASTER UPDATE 7866 869 449.17 15018.96
APPRECIATION - MANUAL UPDATE 11 71 -1953.04 -1871.37
------------------------------- ------- ------- -------------- --------------
TOTAL APPRECIATION 7877 940 -1503.87 13147.59

FIRST PRICING - FACTORY MASTER UPDATE 2 2 90.70 90.70

FIRST PRICING - MANUAL UPDATE 1 0 0.00 415.34
------------------------------- ------- ------- -------------- --------------
TOTAL FIRST PRICING 3 2 90.70 506.04

------------------------------- ------- ------- -------------- --------------

TOTAL APPRECIATION/FIRST PRICING 7880 942 -1413.17 13653.63

OPENING/CLOSING SUMMARY PARTS PIECES MTD YTD

--------------------------------------- ------- ------- -------------- --------------
OPENING INVENTORY 68353 33636 987430.51 1042877.58
CLOSING INVENTORY 68607 31944 929166.88 929166.88
PERCENT OF CHANGE 0.4% -4.9% -5.8% -10.8%

MISCELLANEOUS PARTS PIECES EXT VALUE

--------------------------------------- ------- ------- --------------
OUT OF STOCK 58652 0 0.00
NO COST 81 2139 0.00
NO FACTORY RECORD 9240 3724 11022.23
NO SERVICE 285 132 4814.43
MINUS ON HAND 318 -969 -29372.64
PHASED IN 626 270 13924.17
CONVERTED TO AUTOMATIC PHASEOUT (AP) 1779 635 34739.33

BUSINESS RATIOS
--------------------------------------- ------
LEVEL OF SERVICE 99.7%
STOCK ORDER PERFORMANCE 18.3%
GROSS TURNOVER RATE 14.6
TRUE TURNOVER RATE 2.9
 NEW JERSEY    NEW YORK    PENNSYLVANIA    FLORIDA
800.572.7101   MironovGroup.com

2012 Automotive Industry Guidelines
Domestic Import Highline Domestic Import Highline
Sales ‐ Merchandising and Staffing Guidelines Dealer Dealer Dealer Sales ‐ Merchandising & Staffing Guidelines Dealer Dealer Dealer
New Vehicle Used Vehicle
New Vehicle Supply in days                  109.3                    59.1                    57.7 Used Vehicle supply (in days)                      45.8                  53.7                    52.0
Number of units older than 90 days                    37.5                    28.3                    26.7 Number of units older than 90 days                      18.5                  25.0                    20.0
Units per salesperson ( New) per month                    10.8                    10.4                    10.3 Units per salesperson ( N&U) per month                      14.2                  12.5                    16.4
Gross Cars ‐ before F&I $               1,100 $               1,363 $               2,680 Gross Cars ‐ Before F&I $                1,526 $             1,962 $               2,249
Gross Trucks ‐ before F&I $               1,238 $               1,363 $               2,722 Gross Trucks ‐ before F&I $                1,814 $             1,755 $               2,057
Sales Ratio: new to used 1.6:1 1:1.7 1:2.1

Gross Productivity Gross Productivity
New Vehicle Used Vehicle
Gross profit as a % of sales 5.6% 7.1% 7.6% Gross profit as a % of sales 9.9% 10.9% 7.2%
Net profit as a % of sales 0.3% 1.7% 1.9% Net profit as a % of sales 2.6% 3.3% 2.1%

F&I penetration Rate% F&I Penetration Rate %
Finance contract (exc retail lease) 68.6% 72.9% 60.7%    Finance Income (excl retail lease) 53.4% 51.7% 58.1%
Finance contract (inc retail lease) 72.9% 69.1% 72.5%    Insurance 24.5% 21.1% 13.4%
Insurance 23.6% 24.6% 8.0%    Extended Service 43.1% 40.6% 30.6%
Extended Service 50.8% 44.6% 16.2%    Finance Gross per financed vehicle $                    626 $                631 $                  652
Finance Gross per financed veh. $                  697 $                  530 $                  729    Insurance Gross per insured vehicle $                    406 $                333 $                  410
Insurance Gross per insured veh $                  477 $                  330 $                  399    Ext Service Gross per contract $                    674 $                901 $                  780
Ext Service Gross per contract $                  821 $                  715 $                  692

Expense Control Structure Guidelines Expense Control Structure Guidelines
New Vehicle Used Vehicle
Total expense as a % of vehicle G/P 93.4% 89.0% 88.1% Total Expense as a % of Total G/P 92.3% 84.3% 83.1%

Compensation as a % of veh GP Compensation as a % of veh GP
Salesperson 24.1% 19.8% 17.7% Salesperson 25.1% 20.1% 24.0%
Supervision 21.5% 15.9% 17.0% Supervision 17.9% 14.7% 14.0%
F&I comp as % of F&I income 23.0% 27.5% 22.1% F&I comp as % of F&I income 22.5% 26.6% 22.6%
Personnel Exp as a % of G/P 42.3% 44.4% 39.9% Personel Exp as a % of G/P 38.0% 35.0% 42.2%
Advertising as a % of Veh G/P 19.6% 15.4% 11.4% Advertising as a % of Veh G/P 12.7% 11.6% 15.6%
Advertising per retail unit sold $                  321 $                  277 $                  309 Advertising per retail unit sold $                    280 $                262 $                  327
Floor plan int as a % of Veh G/P ‐7.3% ‐6.9% ‐6.4% Floor plan int as a % of Veh G/P 1.4% 2.0% 1.2%
Reconditioning ‐ Cars $                    561 $                682 $                  836
Reconditioning ‐ Trucks $                    656 $                710 $                  725

Performance Measures Performance Measures
Key Indicator Ratios Key Indicator Ratios

Current Ratio                    1.11                    1.51                    1.44 Return on Equity (ROE) 30.9% 38.6% 36.0%

Debt to Equity Ratio                    3.10                    1.08                    2.74 Return on Assets (ROA) 9.0% 11.8% 10.3%
 NEW JERSEY    NEW YORK    PENNSYLVANIA    FLORIDA
800.572.7101   MironovGroup.com

2012 Automotive Industry Guidelines
Domestic Import Highline Domestic Import Highline
Sales ‐ Merchandising and Staffing Dealer Dealer Dealer Sales ‐ Merchandising and Staffing Guidelines Dealer Dealer Dealer
Service Dept. Parts Dept.
Flat Hrs/RO                      1.5                      1.8                      1.9 Level of Service 87.4% 90.7% 89.7%
Technician efficiency 89.7% 98.8% 97.4% Stock Order Performance 82.4% 91.4% 88.7%
RO's/Day/Svc Advisor ‐ Cust Pay, Warr, Int                    14.0                    15.1                    14.9 Parts $ sold per Labor $ sold
Technicians per Service Advisor                      4.3                      4.1                      4.3 Cust Repair $                     1.0 $                 0.8 $                   0.8
Labor Gross per Tech (per month) $               8,952 $            11,683 $            14,282 Warranty $                     1.5 $                 1.4 $                   1.4
Labor Gross per Advisor (per month) $            36,067 $            40,802 $            59,657 Internal $                     1.0 $                 0.8 $                   1.0
Dept Gross per Employee (per month) $              14,696 $          17,191 $            26,101
Gross Productivity
Service Dept. Gross Productivity
G/P as a % of sales Parts Dept.
Customer Pay 72.6% 75.4% 78.1% G/P as a % of Sales
Warranty 71.3% 78.4% 80.2% Customer Pay 37.4% 39.4% 42.2%
Internal  71.3% 72.4% 75.5% Warranty 33.3% 31.9% 35.1%
Sublet Repairs 8.1% 14.1% 17.9% Internal 26.9% 30.2% 29.4%
Total Department 66.7% 69.5% 71.5% Counter Retail 34.3% 33.4% 36.9%
Wholesale 19.0% 21.1% 25.2%
Net Profit as a % of Sales 17.4% 19.5% 19.2% Customer Pay ‐ Body Shop 32.3% N/A 32.4%
Warranty ‐ Body Shop 30.8% N/A N/A
Total Dept GP%  32.6% 32.5% 34.0%
Expense Control Structure Guidelines Net profit as a % of Sales 11.4% 12.7% 13.7%
Service Dept. 
Total expense as a % of Total GP 79.8% 82.1% 77.9% Expense Control Structure Guidelines
Parts Dept.
Personnel Exp as a % of G/P 41.9% 40.2% 40.9% Total Exp as % of Total G/P 51.9% 66.2% 59.3%
Adv & Training as a % of G/P 7.2% 3.6% 3.8%
Tools, Supp, Freight as a % of G/P 1.5% 0.9% 1.2% Personnel Exp as a % of G/P 32.3% 33.2% 28.8%
Advertising & Training as a % of G/P 3.0% 1.9% 1.5%
Tools, Supp, Freight as a % of G/P 1.1% 1.1% 1.1%
Domestic Import Highline
Fixed Expenses ‐ Percent of Total Gross Dealer Dealer Dealer Domestic Import Highline
Office Staff to Total Dealership 1:10 1:10 1:12 Fixed Expenses ‐ Percent of Total Gross Dealer Dealer Dealer
Absorption % 78.4% 81.7% 90.7%
Total Expenses as a % of Total Gross 92.0% 84.1% 81.6%
Payroll Taxes as a  % of Total Gross 4.8% 4.4% 4.2% Net Earnings
% of Total Sales 3.1% 3.5% 4.1%
Owners Compensation as a % of Sales 0.7% 0.7% 0.8% % of Total Gross 28.3% 24.9% 31.8%

Rent Factor Personnel Expense as a % of Gross profit 44.2% 42.9% 40.9%

Percent of Total Gross 7.7% 8.4% 10.0% Office Compensation as a % of Total Gross 4.2% 4.4% 3.5%