Question-and-Answer Session
Operator
(Operator Instructions) We have a question from the line of Rich Kwas - Wachovia.
Rich Kwas - Wachovia
I had a question on the swing factors for your guidance for ?08. What are the big factors that would get you to the lower end of that range to $1.63? And then what are the positive factors that will get you to the higher end of that range?
Roger S. Penske
Well, I think if you look at same-store comps we were projecting flat, both here in the U.S. and also internationally. If that was moved up, obviously that would add to the bottom line. Expense controls which we are working on from a standpoint of comp as a percentage gross profit certainly plays in.
And also the traction that we would get on Turnersville and Inskip as they get more mature over the next year, because basically we have them in right now probably for about $0.04. And I think that F&I could decline based on lower volumes in both new and used so that could be downward trend.
And then if we didn’t get the distribution of the Smart car into 20,000 or 25,000 that obviously could be a negative. On the other hand, if we hit those numbers it could be at the higher end. And we have nothing in there for additional benefits from the standpoint of interest rates so that could work both ways really.
Rich Kwas - Wachovia
And how do you feel about Turnersville and Inskip right now and where do you kind of expect those facilities to be at the end of 2009?
Roger S. Penske
Well if I look at it, if I kind of give you some impact on Turnersville we were up almost 600 units, Parts and Service gross was up 21% and really, profit improved. We went from a loss of $1.8 million last year to a loss of $800,000 in the fourth quarter. And the good news is that our fixed coverage went up couple of points almost to 55% but again that could go as high as 70 once we get the traction in Parts and Service.
So, to me, another key component will be getting the comp to gross which to date, we made a 300 basis point move to the positive during the year so I think these things will all bode well. As I said we are looking at $0.03 to $0.04 out of these stores.
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