NEW YORK -- Megadealer Asbury Automotive reported a third-quarter net income of $12.1 million, compared with $16.2 million in the prior year period. The down earnings are due to the four major hurricanes' impact on its Florida operations this quarter. Florida accounted for about 43 percent of the company's operating income in the third quarter of 2003.

The third-quarter 2004 operating income of Asbury's Florida operations was down approximately 30 percent and income from continuing operations decreased $0.10 per share from a year ago, largely due to the severe weather.

However, net F&I revenue rose 10.7 percent. F&I per vehicle retailed (PVR) increased 3.2 percent to $902 and platform F&I PVR rose 3.3 percent to $870. Excluding results in Florida, net F&I same-store revenue rose 6.3 percent while F&I PVR increased 6.1 percent and platform F&I PVR rose 6.1 percent.

The solid increases in F&I income helped offset the industry-wide pressure on new- and used-vehicle gross margins, said Kenneth Gilman, Asbury's president and CEO.

"This past quarter was one that tested our business model on many levels, with some aspects proving to be robust while others were challenged," Gilman said. "While the quarter was stressed by severe weather in our Florida markets, as well as a less than optimal industry environment, the validity of the business model itself was once again reaffirmed."