Penske Automotive Reports Record Second Quarter Results
BLOOMFIELD HILLS, Mich., July 27, 2017 /PRNewswire/ --
Second Quarter 2017 Six Months 2017
------------------- ---------------
--Revenue Increases 2.5% to $5.4 --Revenue Increases 3.8% to $10.5
Billion; Excluding Foreign Exchange Billion; Excluding Foreign Exchange
+6.6% +8.5%
--Income from Continuing Operations --Income from Continuing Operations
Attributable to Common Shareholders Attributable to Common Shareholders
Increases 11.9% to $106.0 Million; Increases 8.7% to $189.2 Million;
Excluding Foreign Exchange +15.7% to Excluding Foreign Exchange +15.1% to
$109.6 Million $200.3 Million
--Earnings Per Share from Continuing --Earnings Per Share from Continuing
Operations Attributable to Common Operations Attributable to Common
Shareholders Increases 10.8% to Shareholders Increases 10.0% to
$1.23; Excluding Foreign Exchange $2.20; Excluding Foreign Exchange
+14.4% to $1.27 +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.com
Engage Penske Automotive: http://www.penskesocial.com
Like Penske Automotive on Facebook: https://facebook.com/PenskeCars
Follow Penske Automotive on Twitter: https://twitter.com/Penskecarscorp
Visit 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
jcarlson@penskeautomotive.com tpordon@penskeautomotive.com
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.
