Roger Penske: John, there’s two levers, obviously, maintaining gross or growing gross profit and I think we’ve been a customer for the last 18 months. That’s going to be certainly under pressure as we go forward. But when you think about just cold hard SG&A over the last 12 months, company doing $27 billion, had $40 million more in SG&A over 12 months. So to me, that really when you look at it for the quarter, sorry, when you look at it quarter-to-quarter, when you look at it, it’s amazing because, to me, I think that we’re trying to balance our business, our costs associated with the volume of our business, similarly GM, I think, said about their inventory with inventory down and the ability for us to get better yield out of our sales people.
We’ve gone from roughly 12.5 units per salesperson to over 13. I think there’s an opportunity there. We get better salespeople, better connection with the customer and using tools. We’re able to take some of the sales costs out and on a sequential basis, our SG&A actually went down. And I think – and the real costs were some in people about $8 million. We have some IT and some rent costs. But basically, we’re going to continue to drive that. And through the simplification an optimization that we’re looking at, I think it’s really key. As we go forward, I sat down with the management team in the last couple of days, and we’ve got a plan that actually to take significant money out of our cost system. We’re rolling that out over the next few weeks.
And I think when you look at the overall 67.4% really from SG&A on a same-store basis, really, the SG&A was really only up $25 million. So it’s a matter of hitting all the buttons and certainly, we’re going to try to drive that, because we know we’ll have some pressure on grosses.
John Murphy: Great. Thank you very much, Roger. Thanks everybody.
Roger Penske: Thanks, John.
Operator: Next, we go to Rajat Gupta. Please go ahead.
Roger Penske: Hi, Rajat, hi.
Rajat Gupta: Hi, good morning. Thanks for taking the question. Just wanted to ask on PTS firstly. First quarter results were down like 30% year-over-year in the second quarter, down roughly 45%. You talked about some of the maintenance headwinds, these extensions, gain on sales being impacted by our selling fewer trucks. Any way to think about the trajectory here into the second half, maybe relative to the prior year or relative to the first half? What kind of areas of the second quarter should we expect to unwind? Any other trends that you can share in terms of handicapping the second half income levels for PTS. And I have a follow-up? Thanks.
Roger Penske: I think one of the things we were writing over the last 18 months was the higher gain on sale. Now, we’ve sold already through six months approximately 5,000 more units. However, our margin is down about $14,000 per unit. So that certainly drove a big portion. Obviously, of the decline in gain on sale, which was $55 million, I think, for the quarter. I think overall, from the standpoint of the business, we will see a reduction in maintenance costs as we take out, as we’ve talked about earlier, with 17,000 leasing extensions so far this year, and we had 36,000 over the last 18 months. Now these drive higher maintenance costs. There’s no question. And we also have the issue of trying to bring that many units in at one point and taking units out, because you have to prep these units going out and takes time in our shops.
