Friday, 10 February 2012 19:08

CARSTAR Holds Teleconference to Discuss 2011 Results, 2012 Goals

CARSTAR held their annual outlook teleconference on February 9; CEO of CARSTAR Auto Body Repair Experts, David Byers, detailed the 2011 results for the MSO as well as their goals for 2012.

According to Byers, 2011 was a "very solid" year for the MSO; sales totaled over $600 million and exceeded the group's objectives for the year. 2011 was also a big year for continued growth and acquisition of new locations, which will also continue to be an objective for 2012.

"We have acquired 17 new locations in the last few months," said Byers. CARSTAR plans on focusing on growth in California especially for 2012. Byers also said that the new stores that were acquired in 2011 were very successful--seeing 50 percent higher revenues than stores acquired in 2010.

Byers also said that changes coming for 2012 will "set the stage for growth."

In 2012 CARSTAR plans to grow existing store revenues and profits, add new stores especially in California, add new MSO insurance relationships, and fully deploy CARSTAR solution, the group's new management system in partnership with Mitchell. The MSO aims to add 50 new US stores in 2012.

CARSTAR did have a presence in California in the early 90s, but it did not last. Byers said that he thinks this current expansion into California will be more successful because CARSTAR now has an insurance department and a purchasing department which make the company more stable.
Byers said the way CARSTAR is now is "a dramatic difference over where we were in the early 90s."

Byers also discusses the affect this mild winter has had on locations that normally see an increase in repairs due to winter weather. He said although the mild winter has clearly affected business across the US, CARSTAR depends on KPIs and DRPs to continue driving its business.

"The industry...has seen a softening in the third quarter of 2011 into this year" due to the absence of inclement winter weather, according to Byers.

For more information about CARSTAR please visit www.carstar.com.