Evergreen Ford Lincoln

Integrated KPI Review & 6-Month Operating Plan

PREPARED BY: BABAK MOHAMMADI FOCUS: CLARITY + EXECUTION

📈 Executive Summary: A Structural Imbalance

What stands out to me is not a lack of effort or capability. It is a structural imbalance in the operation. There are areas of the business that are producing and contributing—New Vehicles, Service, Parts, and F&I—but too much of that gain is being absorbed by underperformance in Used Vehicles and the Body Shop, alongside deep liquidity constraints.

The same pattern shows up on the sales side. The Ford market opportunity is there. Demand exists. The issue is that the dealership is not capturing that opportunity as effectively as it should, and that leaves meaningful gross on the table. To me, that points back to structure, clarity, and execution—not potential.

Operating Approach

My approach is simple: train the team on clear process, define what good execution looks like, and inspect it daily with the right tools. When expectations are clear and routines are consistent, results stabilize. We will focus on a few critical operating disciplines, coach to them every day, and hold the line until the gains show up in the numbers.

Process

Clear Standards

Execution

Daily Discipline

Results

Stable Margin

Continuous Alignment

YTD Selling Gross

💰

$1.288M

Strong earning base to build from.

YTD Fixed Exp.

💸

$1.791M

Sets the bar we have to cover.

March Gross (Used)

📉

-$45.5K

Immediate performance target.

Working Capital

💵

-$28K

$4.5M under Ford guide target.

YTD Structural Reality: Gross vs. Expense

1. Strengths (What’s Working)

We need to protect what is already working. New vehicle gross quality is up (+$291K YTD selling gross). Trucks and Lincoln SUVs remain margin engines. Service is productive, and F&I performance is steady.

Core Margin Engines (GPV)

💡

These lines are strong profit producers. We need to validate where F-150 margin position is helping us and where it may be costing us local share.

Service RO Mix (YTD)

Balanced mix supporting 5,400+ main-shop ROs and $1.58M in core sales.

🏆 Lincoln Execution Proves Capabilities

Unlike the Ford side, our team is dominating the Lincoln market. We are capturing 75.8% of our local Lincoln demand, vastly outperforming the 69.1% state benchmark. This proves our staff can execute luxury, trust-based sales when the process aligns.

75.8%

Lincoln Containment

🔧 Service Performance: CP Core

Customer Pay recorded 782 repair orders and $234,742 in sales in March. Year to date, Customer Pay recorded 2,176 repair orders and $665,700 in sales. Gross profit was $159,058 in March and $457,570 year to date, with gross percentages of 67.8% (March) and 68.7% (YTD).

March CP ROs

782

Sales: $234,742

YTD CP ROs

2,176

Sales: $665,700

March CP Gross %

67.8%

Gross: $159,058

YTD CP Gross %

68.7%

Gross: $457,570

Service Mix vs. Capacity Consumption

March and YTD view of pay-type sales mix versus estimated total shop hours consumed.

Sales by Pay Type (March vs YTD)

Est. Hours Consumed by Pay Type

YTD Sales by Pay Type

Sales Mix vs. Capacity Break

Customer Pay YTD: 2,176 ROs / $665,700

Warranty YTD: 1,577 ROs / $546,641

Internal YTD: 1,654 ROs / $376,333

⚠ Key Insight:

Labor per repair order for Customer Pay was $306 YTD. Using the CP labor rate of $225, estimated labor hours per RO were 1.36 YTD, compared to Warranty at 1.71. Sales mix and capacity mix are not the same.

🚩 2. Opportunities (Closing the Gap)

These are the fastest paths to improved performance. If we stabilize Used front-end economics, tighten showroom execution, and correct glaring demographic misses, we will capture gross that is already available in our market.

Used PUVR Recovery Target

Volume is steady (162 YTD), but gross % dropped to 4.34%. PUVR recovery is the direct path to reversing the -$45.5K MTD used gross loss.

Ford Locality Containment

We captured 36.9% of our market. Reclaiming even part of the 246 units won by local competitors will move the store quickly.

Core Segment Volume Opportunities

Explorer (50.0%) and Ranger (53.1%) are clear execution opportunities for immediate volume lift.

Body Shop Rebuild

Selling gross dipped to $11K YTD.

233

YTD Body Shop ROs

We need to rebuild body-shop volume to support current overhead and restore fixed-ops contribution.

🌎 The Demographic Market Gap (Bellevue/Issaquah)

The local Asian demographic drives 35.3% of the total industry volume in our market (3,847 registrations). Yet, Ford is capturing only a 2.0% share of this critical segment.

By comparison, Toyota captures 11.8%. In specific ZIP codes like Bellevue 98007, this demographic represents nearly half (48.8%) of the population. This represents a massive, localized execution miss.

Asian Demo Market Share Locality
Toyota 11.8%
Ford 2.0%

💸 3. The $707K Leak: Net Floorplan

This is the smoking gun for our variable cost problem. According to the March Ford FCSD KPI Dashboard, while the New Vehicle department is holding excellent front-end gross on trucks and SUVs, a disproportionate amount of that profit is being destroyed by floorplan interest. We are vastly underperforming the national benchmark.

Net Floorplan as % of GP (March 2026)

Evergreen surrendered 21.32% of its gross to floorplan in March, compared to the Ford National average of just 7.74%.

National Rank

2,063 / 2,575

Bottom 20% of all Ford Dealers Nationally

💵

Identified Profit Opportunity

$707,276

By correcting inventory turn and curtailment management to align with the national average (7.7%), we immediately unlock over $700K in bottom-line net profit.

4. Operational Risks (What We Must Control)

These are the operational and liquidity risks that are actively eroding margin and cash flow. They require strict daily discipline immediately.

🔍 Used Mix Optimization

CPO is currently at 0%. Restarting CPO and reducing wholesale dependence is key to rebuilding front-end gross quality.

🚗 Body Shop Sourcing

We need to confirm whether traffic decline is external (lost DRP/referral) or internal (cycle time/process delays), then correct fast.

💸 Variable Cost Management

New gross quality improved, but advertising ($160K) and floorplan ($257K) must be tightened so more profit reaches the bottom line.

💵 Liquidity & Cash Flow Drag

Store Net Cash is -$1.41M. Operational sloppiness is compounding this: Service A/R sitting over 91+ days is $180,606. We must tighten collection schedules immediately.

Service Capacity Management

Warranty is running heavier hours per RO. Dispatch discipline has to protect Customer Pay access and advisor throughput.

🚀 5. The 6-Month Operating Plan

Immediate actions, required data for the next management review, and clear ownership.

PRIORITY 1

Used Dept Reset

🎯 Target: Used Mgr / GM

  • Run a weekly aging and pricing walk with GM sign-off.
  • Relaunch CPO with clear unit targets and daily tracking.
  • Review front-end gross by source, age, and recon position.
  • Pull spend that is not converting to quality retail gross.

📁 Data Req for Next Review:

Aging buckets (0-30/31-60/61+), Avg recon cost/cycle time, Source mix (trade/auction/street).

PRIORITY 2

Body Shop Recovery

🎯 Target: Body Mgr / Fixed Ops

  • Map every active work source and recent volume trend.
  • Identify exactly where referral and insurance volume dropped.
  • Audit labor per stall, cycle time, and job mix weekly.
  • Hold discretionary spend until throughput normalizes.

📁 Data Req for Next Review:

DRP status, insurance referral breakdown, Keys-to-keys cycle time, Estimate-to-close conversion.

PRIORITY 3

Locality & Showroom

🎯 Target: New Dir / GSM / GM

  • Test margin position by model to protect gross without losing local deals.
  • Run a weekly leakage review against Sound, AutoNation, and Kirkland.
  • Set model-specific plans for Explorer, Bronco, Ranger, and F-350.

📁 Data Req for Next Review:

CRM response time, Appt set/show rate, Trade-in close ratio, Lost-sale reason by competitor.

PRIORITY 4

Defend Service

🎯 Target: Fixed Ops Dir / GM

  • Track dispatch mix by day to protect CP access.
  • Coach advisor workflow to hold speed and close rate.
  • Tighten retention and UIO follow-up cadence.

📁 Data Req for Next Review:

ELR by pay type, Dispatch mix by stall/tech, Capacity utilization by day, Advisor close ratio.

🎯 Management Scorecard

Area of Focus Current State 6-Month Stretch Target
Used PUVR $641 $1,750
Used Selling Gross -$45,546 MTD $175K–$225K MTD
CPO Mix 0% 50%
Ford Locality Containment 36.9% 50%+
Body Shop Selling Gross $11K YTD $55K MTD
Service Absorption 71.9% 95%
Service CP Mix 40.2% YTD 48%–50%
Core Sales Effectiveness Expl 50.0%, Rngr 53.1%, Brnc 73.5%, F350 74.5% Explorer 90%+, Ranger 90%+, Bronco 95%+, F-350 90%+

The opportunity in this business is meaningful, but these targets assume a much tighter operating model: stronger used-car economics, a true CPO restart, materially better home-market containment, a restored body-shop contribution, and a fixed-ops mix led more heavily by customer pay. If we create clarity around the standards, coach the process daily, and execute with consistency, these targets become stretch but reachable.

📋 6. Financial Data Appendix

A consolidated, raw-number view of the March 31, 2026 dealer financial statement, market expectancies, and demographic metrics driving this operating plan. Use the buttons below to save specific, bite-sized data blocks.

💵 Store Totals & Liquidity

1. Store Operating Totals (MTD / YTD) & March KPI Snapshot

Metric MTD YTD
Total Sales$8,043,496$22,574,600
Total Gross$1,170,754$3,375,870
Total Selling Expense$716,603$2,087,392
Selling / Adj. Selling Gross$454,151$1,288,478
Fixed Expense$619,875$1,790,721
Operating Profit($165,724)($502,243)
Additions / Other Income$166,330$290,182
Profit Before Income Tax$606($212,061)
Service Absorption70.6%71.9%
Return on Sales (March Dashboard KPI)0.0%

2. Balance Sheet & Liquidity Position

Metric Value
Total Current Assets$28,691,292
Total Current Liabilities$28,719,373
Working Capital($28,081)
Recommended Min. / Guide$4,472,236
Actual Over (Under) Guide($4,500,317)
Total Assets$46,057,205
Total Liabilities$28,719,592
Net Worth$17,337,613
Net Cash($1,416,212)
Average Monthly Total Expense$1,292,704
Net Cash Over (Under)($2,708,916)
New Vehicle Equity($2,618,662)
Used Vehicle Equity$1,129,016
Working Cap % Guide (Mar KPI)-0.68%

📊 Receivables & Department KPIs

3. Receivables Aging

MAR 2026
Bucket Service A/R Vehicle A/R Warranty A/R
Current $183,473 $478,921 $74,085
31–60 $36,366 $54,040 $9,012
61–90 $57,934 $3,294 ($4,205)
91+ $180,606 $37,834 $0
* Warranty A/R includes unusual negative 61–90 balance per source statement.

5, 6, 7. New & Used Dept KPI Detail

MAR 2026
Metric Value
New Department Key Metrics
New Vehicle Gross % of Sales9.0%
New Gross Advertising$159,684 YTD
Net Floorplan Expense (YTD)$257,033 YTD
Used Department Key Metrics
Used Gross % of Sales4.34% (Prior: 5.74%)
Used Gross PUVR (All Retail)$641 (Prior: $1,076)
Used Gross Advertising$23,670 (Prior: $17,998)
Total Used Retail Units53 MTD / 162 YTD
Used Car Retail (Non-Cert) Units18 MTD / 44 YTD
Total Used Wholesale Units37 MTD / 99 YTD
Used F&I Net Income$70,388 MTD / $246,799 YTD
Total Used to New Ratio0.8 (Prior: 0.4)

💼 Department Operating Summary

4. Department Operating Summary (MTD / YTD)

MAR 2026
Department Sales MTD Sales YTD Gross MTD Gross YTD Sell Exp MTD Sell Exp YTD Sell Gross MTD Sell Gross YTD
New $4,433,092 $11,702,166 $433,798 $1,052,332 $287,359 $761,190 $146,439 $291,142
Used $6,893,366 $96,932 $390,373 $142,478 $428,579 ($45,546) ($38,206)
Parts $686,126 $1,852,687 $215,741 $622,990 $56,314 $189,743 $159,427 $433,247
Service $563,039 $1,715,766 $365,935 $1,123,499 $183,929 $532,511 $182,006 $590,988
Body Shop $410,615 $186,676 $175,369 $11,307
* Used MTD sales not shown on summary source line.

🔧 Service Department Recap

Service Department Recap (YTD)

MAR 2026
Source / Category YTD RO Count YTD Sales YTD Gross YTD Gross % Labor/RO Labor Rate Estimated Hrs/RO
Customer Pay (Repair) 2,176 $665,700 $457,570 68.7% $306 $225 1.36
Warranty (W&P) 1,577 $546,641 $406,818 74.4% $347 $203 1.71
Internal 1,654 $376,333 $270,075 71.8% $237 $225 1.05
Body Shop 233 $997
Sublet Repairs $35,728 $946 2.6%
Other Merchandise $36,814 $27,642 75.1%
Materials $54,550 $23,200 42.5%
* Estimated hours per RO = labor per RO ÷ posted labor rate.

🏭 Ford & Lincoln Market Performance

11-15. Ford Market Performance

Q4 2025
Locality Regs: 805
Expected Regs: 732
Dealer Sales: 633
Net Sales Gap vs Expected: -99
Sales Effectiveness: 86.5%
Locality Containment: 36.9%
Model / Line Missed GPVS Lost Gross
Explorer-28$941$26,348
Bronco-22$0$0
Transit Van-17$1,004$17,068
Ranger-15$1,039$15,585
F-350-14$3,835$53,690

Top Leakage Dealers (Locality Loss)

Sound Ford: 106 | AutoNation Bel: 72 | Kirkland: 68

* Missed-unit model table reflects under-performing segments only; does not net gains from over-performing lines.

16-20. Lincoln Market Performance

Q4 2025
Locality Regs: 135
Expected Regs: 240
Dealer Sales: 186
Sales Gap vs Exp: -54
Sales Effectiveness: 78.0%
Locality Containment: 75.8%
Segment O/U Effect % Lost Gross
Corsair-1374%$10,568
Nautilus-3365%$46,173
Aviator-2358%$107,739
Navigator+15138%

Luxury Brand Locality Share

Lincoln: 0.8% | BMW: 12.3% | Lexus: 9.6% | MB: 8.6%

🌎 Demographics & Required Root-Cause Data

21-25. Multicultural & Demographic Data

Q4 2025
Locality Demographics
Total Population221,979
Asian60,409 (27.2%)
Hispanic / Latino13,904 (6.3%)
Black / African American3,492 (1.6%)
White131,331 (59.2%)
Asian Buyer Segment (35.3% of Local Industry Registrations)
BrandRegsShare
Toyota45311.8%
Honda2225.8%
Hyundai1734.5%
Ford782.0%

Required Root-Cause Data for Next Review

We have the financial outcomes, but we are missing the operational metrics required to execute the targeted recovery plans. The following numeric reports must be sourced for the next management review:

Used Department
  • Used inventory aging buckets
  • Used recon cycle time
  • Used recon cost per unit
  • Used inventory source mix (Trade / Auction / Other)
Sales & CRM Execution
  • CRM lead response time
  • Appointment set rate
  • Appointment show rate
  • Trade-in closing ratio
Body Shop
  • Body shop DRP mix
  • Keys-to-keys cycle time

💸 Department Expense Detail

Expense-Focused View & Executive Summary

  • The store is carrying $2.087M YTD selling expense and $1.791M YTD fixed expense.
  • New has the largest department expense burden at $761K YTD, driven heavily by floorplan ($422K) and advertising ($159K).
  • Service has the next-largest YTD selling expense at $532.5K, concentrated in salaries, commissions, manager comp, loaners, and tech time-off pay.
  • Used carries $428.6K YTD selling expense, with advertising ($78K) and floorplan ($53K) notable relative to its gross.
  • Parts is comparatively lean at $189.7K YTD.
  • Body Shop has $175.4K YTD selling expense against only $186.7K YTD gross, practically consuming all its generated profit.

New Dept Expense Detail

MAR 2026
Line ItemMTDYTD
Variable Expense
Salespersons$71,476$200,255
Sales Managers$42,522$122,438
F&I$39,641$93,850
Pre-Delivery$7,350$26,230
Pre-Delivery Allowances($7,850)($30,078)
Free Service / Maint / Policy$0$0
Total Variable Expense$153,139$412,695
Semi-Fixed Expense
Salaries – Sales Managers$10,214$31,214
Other Salaries$18,466$44,188
Total Advertising$55,347$159,684
Advertising Rebates($52,723)($168,423)
Promotion$6,064$13,766
Training$715$1,292
Demo Expense$2,611$6,039
Service Loaners$1,026$3,090
F&I Other$0$612
Interest – Floor Plan$141,016$422,748
Floor Plan Assistance($48,516)($165,715)
Total Semi-Fixed Expense$134,220$348,495
Total New Expense$287,359$761,190

Used Dept Expense Detail

MAR 2026
Line ItemMTDYTD
Variable Expense
Salespersons$32,805$106,828
Sales Managers$19,829$53,934
F&I$11,464$40,641
Free Service / Maint / Policy$560$1,476
Total Variable Expense$64,658$202,879
Semi-Fixed Expense
Salaries – Sales Managers$9,352$28,684
Other Salaries$10,755$26,520
Total Advertising$23,670$78,072
Advertising Rebates$0$0
Promotion$10,021$18,404
Training$19$78
Demo Expense$6,517$20,207
Service Loaners$0$4
F&I Other$39$651
Interest – Floor Plan$17,447$53,080
Floor Plan Assistance$0$0
Total Semi-Fixed Expense$77,820$225,700
Total Used Expense$142,478$428,579

Service Sales Expense

MAR 2026
Line ItemMTDYTD
Comp – Managers$27,638$86,582
Salaries – Other$60,084$191,568
Commissions & Incentives – Other$37,826$109,388
Advertising / Promo$8,394$15,835
Training$2,151$10,039
Policy Adjustments$7,343$24,724
Service Loaner$16,049$42,088
Tools & Supplies($18,323)($52,962)
Freight$13$654
Equipment & Vehicle Maint.$25,568$39,011
Inventory Control & Data Processing$0$0
Vac / Time Off Pay – Tech$17,186$65,584
Total Service Sales Expense$183,929$532,511

Parts Sales Expense

MAR 2026
Line ItemMTDYTD
Comp – Managers$11,823$34,454
Salaries – Other$19,090$69,942
Commissions & Incentives – Other$14,920$45,612
Advertising / Promo$1,134$6,037
Training$0$8
Policy Adjustments$0$28
Tools & Supplies$943$2,122
Freight$86$419
Equipment & Vehicle Maint.$3,992$7,859
Inventory Control & Data Processing$4,326$23,262
Total Parts Sales Expense$56,314$189,743