Penske Automotive Reports Record Second Quarter Results

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Highest Quarterly Income From Continuing Operations and Earnings Per Share in Company History Earnings per Share From Continuing Operations Increases 10.8% to $1.23 Excluding Foreign Exchange, Earnings Per Share Increases 14.4%

July 27, 2017 6:59 AM EDT

BLOOMFIELD HILLS, Mich., July 27, 2017 /PRNewswire/ --

Second Quarter 2017

Six Months 2017

-- Revenue Increases 2.5% to $5.4 Billion; Excluding Foreign Exchange +6.6%

-- Revenue Increases 3.8% to $10.5 Billion; Excluding Foreign Exchange +8.5%

-- Income from Continuing Operations Attributable to Common Shareholders Increases 11.9% to $106.0 Million; Excluding Foreign Exchange +15.7% to $109.6 Million

-- Income from Continuing Operations Attributable to Common Shareholders Increases 8.7% to $189.2 Million; Excluding Foreign Exchange +15.1% to $200.3 Million

-- Earnings Per Share from Continuing Operations Attributable to Common Shareholders Increases 10.8% to $1.23; Excluding Foreign Exchange +14.4% to $1.27

-- Earnings Per Share from Continuing Operations Attributable to Common Shareholders Increases 10.0% to $2.20; Excluding Foreign Exchange +16.5% to $2.33

Penske Automotive Group, Inc. (NYSE: PAG), an international transportation services company, announced today record results, including the highest quarterly income from continuing operations and earnings per share in company history. For the three months ended June 30, 2017, income from continuing operations attributable to common shareholders increased 11.9% to $106.0 million, and related earnings per share increased 10.8% to $1.23 when compared to the same period last year. Total automotive retail units increased 13.0% and total revenue increased 2.5% to $5.4 billion. Excluding foreign exchange, total revenue increased 6.6%. Foreign exchange rates negatively impacted earnings per share attributable to common shareholders by $0.04 for the three months ended June 30, 2017.

Commenting on the company's results, Penske Automotive Group Chairman Roger S. Penske said, "I am pleased to report another quarter of record results, highlighting the diversity of our transportation services business model, driven by the solid performance of our U.S. and U.K. automotive markets, contribution from our used car super centers, and the benefit from the investment in Penske Truck Leasing. Further, I was particularly pleased to see the 130 basis-point improvement in our automotive retail service and parts gross margin to 59.5%."  Penske continued, "Our performance continues to demonstrate and reinforce the adaptability of our business to market conditions." 

Automotive Retail Highlights of the Second Quarter

  • Retail Unit Sales +13.0% to 130,127
    • New unit retail sales +2.8%
    • Used unit retail sales +25.1%
  • Same-Store Retail Unit Sales -1.9% to 112,796
    • New unit retail sales -3.4%
    • Used unit retail sales -0.1%
  • Same-Store Retail Revenue -5.6%
    • New -8.7%; Used -3.3%; Finance & Insurance +3.3%; Service and Parts +0.2%
    • -1.5% in the United States; -11.7% Internationally
    • Excluding f/x, same-store retail revenue -1.7%
  • Average Transaction Price Per Unit
    • New $37,575; -5.1%
    • Used $24,772; -11.3%
  • Average Gross Profit Per Unit
    • New $2,977, -$129/unit; Gross Margin 7.9%, +10 basis points
      • Excluding f/x $3,099, -$7/unit; Gross Margin 8.0%, +20 basis points
    • Used $1,416, -$281/unit; Gross Margin 5.7%, -40 basis points
      • Excluding f/x $1,485, -$212/unit; Gross Margin 5.7%, -40 basis points
    • Finance & Insurance $1,131, +$39/unit
      • Excluding f/x $1,182, +$90/unit

Note: f/x = foreign exchange

For the six months ended June 30, 2017, total revenue increased 3.8% to $10.5 billion, with a 4.0% decrease in same-store retail revenue. Excluding foreign exchange, total revenue increased 8.5%, while same-store retail revenue increased 0.9%. Total automotive retail unit volume increased 12.4%, with a 1.1% decrease on a same-store basis. Income from continuing operations attributable to common shareholders increased 8.7% to $189.2 million and related earnings per share increased 10.0% to $2.20 when compared to the same period last year. Foreign exchange rates negatively impacted earnings per share attributable to common shareholders by $0.13.

Retail Commercial Truck Operations

Penske Automotive Group operates twenty medium and heavy-duty truck dealership locations in the U.S. and Canada under the "Premier Truck Group" brand name, offering primarily the Freightliner and Western Star brands. For the three and six months ended June 30, 2017, Premier Truck Group retailed 1,559 and 3,066 units, generated $228.5 million and $440.2 million of revenue, and $40.0 million and $76.4 million of gross profit, respectively, principally through the retail sale of new/used medium and heavy-duty trucks and service/parts sales. For the three months ended June 30, 2017, gross profit per used truck retailed improved to $6,503 from a loss of $2,096 per unit in the same period last year, as used truck prices stabilized. Service and parts gross profit represented approximately 75.8% and 77.4% of Premier Truck Group's gross profit for the three and six months ended June 30, 2017, respectively.

Penske Truck Leasing

Penske Truck Leasing Co., L.P. ("PTL") is a leading provider of full-service truck leasing, truck rental, contract maintenance and logistics services. During the third quarter of 2016, the company increased its ownership in PTL from 9.0% to 23.4%. For the three and six months ended June 30, 2017, the company recorded $24.9 million and $36.8 million as part of equity in earnings of affiliates compared to $9.3 million and $12.8 million for the three and six months ended June 30, 2016, respectively. The company accounts for its ownership interest in PTL using the equity method of accounting.

Dividend

On July 26, 2017, the company announced that its Board of Directors increased the dividend to its common stock shareholders to $0.32 per share, the twenty-fifth consecutive increase in the quarterly dividend. 

Conference Call

Penske Automotive Group will host a conference call discussing financial results relating to the second quarter of 2017 on Thursday, July 27, 2017, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (800) 288‑8961 – [International, please dial (612) 288‑0337]. The call will also be simultaneously broadcast over the Internet through the Investor Relations section of the Penske Automotive Group website. Additionally, an investor presentation relating to the second quarter 2017 financial results has been posted to the company's website. To access the presentation or to listen to the company's webcast, please refer to www.penskeautomotive.com.

About Penske Automotive

Penske Automotive Group, Inc., (NYSE: PAG) headquartered in Bloomfield Hills, Michigan, is an international transportation services company that operates automotive and commercial truck dealerships principally in the United States, Canada, and Western Europe, and distributes commercial vehicles, diesel engines, gas engines, power systems and related parts and services principally in Australia and New Zealand. PAG employs more than 25,000 people worldwide and is a member of the Fortune 500 and Russell 2000. For additional information, visit the company's website at www.penskeautomotive.com.

Non-GAAP Financial Measures

This release contains certain non-GAAP financial measures as defined under SEC rules, such as earnings before interest, taxes, depreciation and amortization ("EBITDA"). The company has reconciled these measures to the most directly comparable GAAP measures in the release. The company believes that these widely accepted measures of operating profitability improve the transparency of the company's disclosures and provide a meaningful presentation of the company's results from its core business operations excluding the impact of items not related to the company's ongoing core business operations, and improve the period-to-period comparability of the company's results from its core business operations. These non-GAAP financial measures are not substitutes for GAAP financial results, and should only be considered in conjunction with the company's financial information that is presented in accordance with GAAP.

Caution Concerning Forward Looking Statements

Statements in this press release may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.'s future sales and earnings accretion potential. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others: economic conditions generally, conditions in the credit markets and changes in interest rates and foreign currency exchange rates, adverse conditions affecting a particular manufacturer, including the adverse impact to the vehicle and parts supply chain due to natural disasters, recall or other disruptions that interrupt the supply of vehicles or parts to us, changes in consumer credit availability, the outcome of legal and administrative matters, and other factors over which management has limited control. These forward-looking statements should be evaluated together with additional information about Penske Automotive Group's business, markets, conditions and other uncertainties, which could affect Penske Automotive Group's future performance. These risks and uncertainties are addressed in Penske Automotive Group's Form 10‑K for the year ended December 31, 2016, and its other filings with the Securities and Exchange Commission ("SEC"). This press release speaks only as of its date, and Penske Automotive Group disclaims any duty to update the information herein.

Find a vehicle: http://www.penskecars.comEngage Penske Automotive: http://www.penskesocial.comLike Penske Automotive on Facebook: https://facebook.com/PenskeCarsFollow Penske Automotive on Twitter: https://twitter.com/PenskecarscorpVisit Penske Automotive on YouTube: http://www.youtube.com/penskecars

Inquiries should contact:

J.D. Carlson

Anthony R. Pordon

Executive Vice President and

Executive Vice President Investor Relations

Chief Financial Officer

and Corporate Development

Penske Automotive Group, Inc.

Penske Automotive Group, Inc.

248-648-2810

248-648-2540

[email protected]

[email protected]

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Statements of Income

(Amounts In Millions, Except Per Share Data)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

Increase/

Increase/

2017

2016

(Decrease)

2017

2016

(Decrease)

Revenue

$

5,383.4

$

5,254.1

2.5

%

$

10,464.5

$

10,078.7

3.8

%

Cost of Sales

4,566.1

4,482.8

1.9

%

8,872.9

8,583.6

3.4

%

Gross Profit

$

817.3

$

771.3

6.0

%

$

1,591.6

$

1,495.1

6.5

%

SG&A Expenses

622.0

582.7

6.7

%

1,223.7

1,141.6

7.2

%

Depreciation

23.3

24.5

(4.9)

%

45.7

45.3

0.9

%

Operating Income

$

172.0

$

164.1

4.8

%

$

322.2

$

308.2

4.5

%

Floor Plan Interest Expense

(15.5)

(13.1)

18.3

%

(29.2)

(25.9)

12.7

%

Other Interest Expense

(26.4)

(19.5)

35.4

%

(51.4)

(36.7)

40.1

%

Equity in Earnings of Affiliates

26.8

12.0

123.3

%

40.0

17.5

128.6

%

Income from Continuing Operations Before Income Taxes

$

156.9

$

143.5

9.3

%

$

281.6

$

263.1

7.0

%

Income Taxes

(50.2)

(47.3)

6.1

%

(91.3)

(86.7)

5.3

%

Income from Continuing Operations

$

106.7

$

96.2

10.9

%

$

190.3

$

176.4

7.9

%

Income (Loss) from Discontinued Operations, net of tax

0.2

(1.2)

(116.7)

%

(0.4)

(1.2)

(66.7)

%

Net Income

$

106.9

$

95.0

12.5

%

$

189.9

$

175.2

8.4

%

Less: Income Attributable to Non-Controlling Interests

0.7

1.5

(53.3)

%

1.1

2.4

(54.2)

%

Net Income Attributable to Common Shareholders

$

106.2

$

93.5

13.6

%

$

188.8

$

172.8

9.3

%

Amounts Attributable to Common Shareholders:

Reported Income from Continuing Operations

$

106.7

$

96.2

10.9

%

$

190.3

$

176.4

7.9

%

Less: Income Attributable to Non-Controlling Interests

0.7

1.5

(53.3)

%

1.1

2.4

(54.2)

%

Income from Continuing Operations, net of tax

$

106.0

$

94.7

11.9

%

$

189.2

$

174.0

8.7

%

Income (Loss) from Discontinued Operations, net of tax

0.2

(1.2)

(116.7)

%

(0.4)

(1.2)

(66.7)

%

Net Income Attributable to Common Shareholders

$

106.2

$

93.5

13.6

%

$

188.8

$

172.8

9.3

%

Income from Continuing Operations Per Share

$

1.23

$

1.11

10.8

%

$

2.20

$

2.00

10.0

%

Income Per Share

$

1.23

$

1.10

11.8

%

$

2.20

$

1.99

10.6

%

Weighted Average Shares Outstanding

86.1

85.3

0.9

%

85.9

86.8

(1.0)

%

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Balance Sheets

(Amounts In Millions)

(Unaudited)

June 30,

December 31,

2017

2016

Assets:

Cash and Cash Equivalents

$

20.7

$

24.0

Accounts Receivable, Net

827.7

879.0

Inventories

3,711.9

3,408.2

Other Current Assets

104.2

73.9

Assets Held for Sale

—

8.4

Total Current Assets

4,664.5

4,393.5

Property and Equipment, Net

1,990.3

1,806.5

Intangibles

2,109.0

1,711.3

Other Long-Term Assets

948.1

921.7

Total Assets

$

9,711.9

$

8,833.0

Liabilities and Equity:

Floor Plan Notes Payable

$

2,151.1

$

2,084.5

Floor Plan Notes Payable – Non-Trade

1,364.7

1,233.3

Accounts Payable

559.9

497.4

Accrued Expenses

413.2

360.0

Current Portion Long-Term Debt

70.1

48.3

Liabilities Held for Sale

0.7

6.1

Total Current Liabilities

4,559.7

4,229.6

Long-Term Debt

1,955.8

1,828.8

Other Long-Term Liabilities

1,179.7

995.1

Total Liabilities

7,695.2

7,053.5

Equity

2,016.7

1,779.5

Total Liabilities and Equity

$

9,711.9

$

8,833.0

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Operations

Selected Data

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2017

2016

2017

2016

Geographic Revenue Mix:

North America

60.3

%

60.1

%

58.4

%

58.8

%

U.K.

32.0

%

32.7

%

33.9

%

34.0

%

Other International

7.7

%

7.2

%

7.7

%

7.2

%

Total

100.0

%

100.0

%

100.0

%

100.0

%

Revenue: (Amounts in Millions)

Retail Automotive

$

5,040.7

$

4,836.8

$

9,797.1

$

9,349.7

Retail Commercial Trucks

228.5

309.5

440.2

516.2

Commercial Vehicles Australia/Power Systems and Other

114.2

107.8

227.2

212.8

Total

$

5,383.4

$

5,254.1

$

10,464.5

$

10,078.7

Gross Profit: (Amounts in Millions)

Retail Automotive

$

746.0

$

702.0

$

1,454.3

$

1,367.0

Retail Commercial Trucks

40.0

38.3

76.4

71.5

Commercial Vehicles Australia/Power Systems and Other

31.3

31.0

60.9

56.6

Total

$

817.3

$

771.3

$

1,591.6

$

1,495.1

Gross Margin:

Retail Automotive

14.8

%

14.5

%

14.8

%

14.6

%

Retail Commercial Trucks

17.5

%

12.4

%

17.4

%

13.9

%

Commercial Vehicles Australia/Power Systems and Other

27.4

%

28.8

%

26.8

%

26.6

%

Total

15.2

%

14.7

%

15.2

%

14.8

%

 

Three Months Ended

Six Months Ended

June 30,

June 30,

Increase/

Increase/

2017

2016

(Decrease)

2017

2016

(Decrease)

Operating Items as a Percentage of Revenue:

Gross Profit

15.2

%

14.7

%

50

 bps  

15.2

%

14.8

%

40

 bps  

Selling, General and Administrative Expenses

11.6

%

11.1

%

50

 bps  

11.7

%

11.3

%

40

 bps  

Operating Income

3.2

%

3.1

%

10

 bps  

3.1

%

3.1

%

—

 bps  

Inc. From Cont. Ops. Before Inc. Taxes

2.9

%

2.7

%

20

 bps  

2.7

%

2.6

%

10

 bps  

Operating Items as a Percentage of Total Gross Profit:

Selling, General and Administrative Expenses

76.1

%

75.5

%

60

 bps  

76.9

%

76.4

%

50

 bps  

Operating Income

21.0

%

21.3

%

(30)

 bps  

20.2

%

20.6

%

(40)

 bps  

 

Three Months Ended

Six Months Ended

June 30,

June 30,

Increase/

Increase/

(Amounts in Millions)

2017

2016

(Decrease)

2017

2016

(Decrease)

EBITDA*

$

206.6

$

187.5

10.2

%

$

378.7

$

345.1

9.7

%

Floorplan Credits

$

10.1

$

10.2

(1.0)

%

$

18.4

$

19.1

(3.7)

%

Rent Expense

$

55.4

$

51.9

6.7

%

$

108.8

$

103.4

5.2

%

* See the following Non-GAAP reconciliation table.

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

Selected Data

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2017

2016

2017

2016

Retail Automotive Units:

New Retail

63,919

62,170

126,107

120,923

Used Retail

66,208

52,936

128,492

105,677

Total

130,127

115,106

254,599

226,600

Retail Automotive Revenue: (Amounts in Millions)

New Vehicles

$

2,401.7

$

2,461.0

$

4,709.1

$

4,729.2

Used Vehicles

1,640.1

1,478.8

3,181.1

2,891.2

Finance and Insurance, Net

147.2

125.7

284.6

244.1

Service and Parts

520.3

496.2

1,019.2

974.3

Fleet and Wholesale

331.4

275.1

603.1

510.9

Total Revenue

$

5,040.7

$

4,836.8

$

9,797.1

$

9,349.7

Retail Automotive Gross Profit: (Amounts in Millions)

New Vehicles

$

190.3

$

193.1

$

367.4

$

368.6

Used Vehicles

93.8

89.8

187.9

174.1

Finance and Insurance, Net

147.2

125.7

284.6

244.1

Service and Parts

309.7

288.7

603.4

570.1

Fleet and Wholesale

5.0

4.7

11.0

10.1

Total Gross Profit

$

746.0

$

702.0

$

1,454.3

$

1,367.0

Retail Automotive Revenue Per Vehicle Retailed:

New Vehicles

$

37,575

$

39,586

$

37,342

$

39,110

Used Vehicles

24,772

27,936

24,757

27,359

Retail Automotive Gross Profit Per Vehicle Retailed:

New Vehicles

$

2,977

$

3,106

$

2,913

$

3,049

Used Vehicles

1,416

1,697

1,463

1,647

Finance & Insurance

1,131

1,092

1,118

1,077

Retail Automotive Gross Margin:

New Vehicles

7.9

%

7.8

%

7.8

%

7.8

%

Used Vehicles

5.7

%

6.1

%

5.9

%

6.0

%

Service and Parts

59.5

%

58.2

%

59.2

%

58.5

%

Fleet and Wholesale

1.5

%

1.7

%

1.8

%

2.0

%

Total Gross Margin

14.8

%

14.5

%

14.8

%

14.6

%

Retail Automotive Revenue Mix Percentages:

New Vehicles

47.7

%

50.9

%

48.1

%

50.6

%

Used Vehicles

32.5

%

30.6

%

32.5

%

30.9

%

Finance and Insurance, Net

2.9

%

2.6

%

2.9

%

2.6

%

Service and Parts

10.3

%

10.3

%

10.4

%

10.4

%

Fleet and Wholesale

6.6

%

5.6

%

6.1

%

5.5

%

Total

100.0

%

100.0

%

100.0

%

100.0

%

Retail Automotive Gross Profit Mix Percentages:

New Vehicles

25.5

%

27.5

%

25.3

%

27.0

%

Used Vehicles

12.6

%

12.8

%

12.9

%

12.7

%

Finance and Insurance, Net

19.7

%

17.9

%

19.6

%

17.9

%

Service and Parts

41.5

%

41.1

%

41.5

%

41.7

%

Fleet and Wholesale

0.7

%

0.7

%

0.7

%

0.7

%

Total

100.0

%

100.0

%

100.0

%

100.0

%

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

Selected Data

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2017

2016

2017

2016

Retail Automotive Revenue Mix:

Premium:

BMW / MINI

23

%

25

%

23

%

25

%

Audi

14

%

14

%

14

%

14

%

Mercedes-Benz

10

%

10

%

10

%

10

%

Land Rover / Jaguar

8

%

7

%

8

%

8

%

Porsche

6

%

6

%

6

%

5

%

Lexus

3

%

3

%

3

%

3

%

Ferrari / Maserati

3

%

3

%

3

%

3

%

Acura

1

%

1

%

1

%

1

%

Bentley

1

%

1

%

1

%

1

%

Others

1

%

2

%

1

%

2

%

Total Premium

70

%

72

%

70

%

72

%

Volume Non-U.S.:

Toyota

10

%

11

%

10

%

11

%

Honda

7

%

7

%

7

%

7

%

Volkswagen

3

%

3

%

4

%

3

%

Nissan

1

%

1

%

1

%

1

%

Others

2

%

2

%

2

%

2

%

Total Volume Non-U.S.

23

%

24

%

24

%

24

%

U.S.:

General Motors / Chrysler / Ford

3

%

4

%

3

%

4

%

Stand-Alone Used

4

%

—

%

3

%

—

%

Total

100

%

100

%

100

%

100

%

Retail Automotive Geographic Revenue Mix:

U.S.

60

%

59

%

58

%

58

%

U.K.

34

%

35

%

36

%

36

%

Other International

6

%

6

%

6

%

6

%

Total

100

%

100

%

100

%

100

%

Retail Automotive Geographic Gross Profit Mix:

U.S.

64

%

63

%

62

%

62

%

U.K.

31

%

31

%

32

%

32

%

Other International

5

%

6

%

6

%

6

%

Total

100

%

100

%

100

%

100

%

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

Same-Store

Selected Data

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2017

2016

2017

2016

Retail Automotive Same-Store Units:

New Retail

59,983

62,096

118,486

120,216

Used Retail

52,813

52,888

104,289

105,149

Total

112,796

114,984

222,775

225,365

Retail Automotive Same-Store Revenue: (Amounts in Millions)

New Vehicles

$

2,245.2

$

2,458.0

$

4,423.0

$

4,698.5

Used Vehicles

1,428.2

1,477.7

2,784.7

2,874.8

Finance and Insurance, Net

129.7

125.6

253.0

242.8

Service and Parts

496.2

495.2

974.5

969.9

Fleet and Wholesale

295.2

275.0

538.3

509.3

Total Revenue

$

4,594.5

$

4,831.5

$

8,973.5

$

9,295.3

Retail Automotive Same-Store Gross Profit: (Amounts in Millions)

New Vehicles

$

177.3

$

192.9

$

342.1

$

366.2

Used Vehicles

77.9

89.8

157.6

173.1

Finance and Insurance, Net

129.7

125.6

253.0

242.8

Service and Parts

293.4

288.2

574.4

567.8

Fleet and Wholesale

4.3

4.7

9.6

10.1

Total Gross Profit

$

682.6

$

701.2

$

1,336.7

$

1,360.0

Retail Automotive Same-Store Revenue Per Vehicle Retailed:

New Vehicles

$

37,431

$

39,584

$

37,329

$

39,084

Used Vehicles

27,043

27,940

26,702

27,340

Retail Automotive Same-Store Gross Profit Per Vehicle Retailed:

New Vehicles

$

2,956

$

3,106

$

2,887

$

3,046

Used Vehicles

1,475

1,697

1,511

1,646

Finance & Insurance

1,150

1,092

1,136

1,078

Retail Automotive Same-Store Gross Margin:

New Vehicles

7.9

%

7.8

%

7.7

%

7.8

%

Used Vehicles

5.5

%

6.1

%

5.7

%

6.0

%

Service and Parts

59.1

%

58.2

%

58.9

%

58.5

%

Fleet and Wholesale

1.5

%

1.7

%

1.8

%

2.0

%

Total Gross Margin

14.9

%

14.5

%

14.9

%

14.6

%

Retail Automotive Revenue Mix Percentages:

New Vehicles

48.9

%

50.9

%

49.3

%

50.6

%

Used Vehicles

31.1

%

30.6

%

31.0

%

30.9

%

Finance and Insurance, Net

2.8

%

2.6

%

2.8

%

2.6

%

Service and Parts

10.8

%

10.2

%

10.9

%

10.4

%

Fleet and Wholesale

6.4

%

5.7

%

6.0

%

5.5

%

Total

100.0

%

100.0

%

100.0

%

100.0

%

Retail Automotive Gross Profit Mix Percentages:

New Vehicles

26.0

%

27.5

%

25.6

%

26.9

%

Used Vehicles

11.4

%

12.8

%

11.8

%

12.7

%

Finance and Insurance, Net

19.0

%

17.9

%

18.9

%

17.9

%

Service and Parts

43.0

%

41.1

%

43.0

%

41.8

%

Fleet and Wholesale

0.6

%

0.7

%

0.7

%

0.7

%

Total

100.0

%

100.0

%

100.0

%

100.0

%

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Commercial Truck Operations

Selected Data

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2017

2016

2017

2016

Retail Commercial Truck Units:

New Retail

1,174

1,949

2,300

3,109

Used Retail

385

274

766

545

Total Units

1,559

2,223

3,066

3,654

Retail Commercial Truck Revenue: (Amounts in Millions)

New Vehicles

$

116.5

$

212.0

$

227.2

$

328.7

Used Vehicles

23.2

13.8

42.2

27.3

Finance and Insurance, Net

2.3

1.8

4.5

3.7

Service and Parts

83.3

79.3

161.3

150.7

Lease, Rental & Wholesale

3.2

2.6

5.0

5.8

Total Revenue

$

228.5

$

309.5

$

440.2

$

516.2

Retail Commercial Truck Gross Profit: (Amounts in Millions)

New Vehicles

$

5.0

$

7.6

$

9.5

$

12.5

Used Vehicles

2.5

(0.6)

3.5

(1.0)

Finance and Insurance, Net

2.3

1.8

4.5

3.7

Service and Parts

30.3

29.3

59.1

55.7

Lease, Rental & Wholesale

(0.1)

0.2

(0.2)

0.6

Total Gross Profit

$

40.0

$

38.3

$

76.4

$

71.5

Retail Commercial Truck Revenue Per Vehicle Retailed:

New Vehicles

$

99,225

$

108,764

$

98,758

$

105,725

Used Vehicles

60,139

50,247

55,019

49,988

Retail Commercial Truck Gross Profit Per Vehicle Retailed:

New Vehicles

$

4,300

$

3,904

$

4,144

$

4,015

Used Vehicles

6,503

(2,096)

4,556

(1,785)

Finance and Insurance

1,477

809

1,452

1,006

Retail Commercial Truck Gross Margin:

New Vehicles

4.3

%

3.6

%

4.2

%

3.8

%

Used Vehicles

10.8

%

(4.3)

%

8.3

%

(3.7)

%

Service and Parts

36.4

%

36.9

%

36.6

%

37.0

%

Lease, Rental & Wholesale

(3.1)

%

7.7

%

(4.0)

%

10.3

%

Total Gross Margin

17.5

%

12.4

%

17.4

%

13.9

%

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Commercial Truck Operations

Same-Store

Selected Data

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2017

2016

2017

2016

Retail Commercial Truck Same-Store Units:

New Retail

941

1,673

1,900

2,833

Used Retail

347

266

667

537

Total Units

1,288

1,939

2,567

3,370

Retail Commercial Truck Same-Store Revenue: (Amounts in Millions)

New Vehicles

$

94.8

$

180.0

$

187.3

$

296.8

Used Vehicles

21.3

13.4

37.5

26.9

Finance and Insurance, Net

2.1

1.6

4.1

3.5

Service and Parts

72.5

71.1

140.0

142.3

Lease, Rental & Wholesale

3.1

2.6

5.0

5.8

Total Revenue

$

193.8

$

268.7

$

373.9

$

475.3

Retail Commercial Truck Same-Store Gross Profit: (Amounts in Millions)

New Vehicles

$

4.1

$

6.5

$

8.2

$

11.4

Used Vehicles

2.4

(0.6)

3.3

(1.0)

Finance and Insurance, Net

2.1

1.6

4.1

3.5

Service and Parts

26.8

26.5

52.2

52.9

Lease, Rental & Wholesale

(0.1)

0.2

(0.3)

0.6

Total Gross Profit

$

35.3

$

34.2

$

67.5

$

67.4

Retail Commercial Truck Same-Store Revenue Per Vehicle Retailed:

New Vehicles

$

100,789

$

107,613

$

98,605

$

104,749

Used Vehicles

61,407

50,378

56,225

50,049

Retail Commercial Truck Same-Store Gross Profit Per Vehicle Retailed:

New Vehicles

$

4,391

$

3,897

$

4,335

$

4,021

Used Vehicles

6,935

(2,264)

4,884

(1,864)

Finance and Insurance

1,652

828

1,588

1,033

Retail Commercial Truck Same-Store Gross Margin:

New Vehicles

4.3

%

3.6

%

4.4

%

3.8

%

Used Vehicles

11.3

%

(4.5)

%

8.8

%

(3.7)

%

Service and Parts

37.0

%

37.3

%

37.3

%

37.2

%

Lease, Rental & Wholesale

(3.2)

%

7.7

%

(6.0)

%

10.3

%

Total Gross Margin

18.2

%

12.7

%

18.1

%

14.2

%

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Non-GAAP Reconciliations

(Unaudited)

The following table reconciles reported net income to earnings before interest, taxes, depreciation and amortization ("EBITDA") for the three and six months ended June 30, 2017 and 2016:

Three Months Ended

Six Months Ended

June 30,

June 30,

Increase/

Increase/

(Amounts in Millions)

2017

2016

(Decrease)

2017

2016

(Decrease)

Net Income

$

106.9

$

95.0

12.5

%

$

189.9

$

175.2

8.4

%

Add: Depreciation

23.3

24.5

(4.9)

%

45.7

45.3

0.9

%

Other Interest Expense

26.4

19.5

35.4

%

51.4

36.7

40.1

%

Income Taxes

50.2

47.3

6.1

%

91.3

86.7

5.3

%

(Income) Loss from Discontinued Operations, net of tax

(0.2)

1.2

(116.7)

%

0.4

1.2

(66.7)

%

EBITDA

$

206.6

$

187.5

10.2

%

$

378.7

$

345.1

9.7

%

 

View original content with multimedia:http://www.prnewswire.com/news-releases/penske-automotive-reports-record-second-quarter-results-300495031.html

SOURCE Penske Automotive Group, Inc.


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