Penske Automotive Reports Record Results
BLOOMFIELD HILLS, Mich., Feb. 10, 2021 /PRNewswire/ -- Penske Automotive Group, Inc. (NYSE:PAG), a diversified international transportation services company, today announced fourth quarter and full year 2020 results. For the three months ended December 31, 2020, the company reported a 97% increase in income from continuing operations attributable to common shareholders to $200.1 million, and a 99% increase in related earnings per share to $2.49. This compares to income from continuing operations attributable to common shareholders of $101.6 million, or $1.25 per share in the prior year. Fourth quarter income from continuing operations and related earnings per share include a net benefit of $0.2 million, related to a gain on dealership sales, partially offset by a loss on debt extinguishment and U.S. and foreign tax legislation changes. Excluding this net benefit, adjusted income from continuing operations increased 96.8% to $199.9 million, and related earnings per share increased 99.2% to $2.49. Foreign exchange positively impacted earnings per share by $0.02. Revenue was $5.8 billion compared to $5.9 billion in the same period last year.
Commenting on the company's results, Chairman Roger Penske said, "I am very pleased to report 97% earnings growth for the fourth quarter. Our results were driven by same-store retail automotive margin expansion, growth in our commercial truck dealership profitability, and continued strong performance from Penske Transportation Solutions. Coupled with the benefit from expense reductions, adjusted selling, general, and administrative expenses as a percentage of gross profit declined 800 basis-points. Additionally, in 2020 our business generated $708 million in earnings before taxes, an all-time record. Our strong cash flow during the year provided us with the opportunity to paydown $670 million of non-vehicle long-term debt and reduce our debt to total capitalization to 34% from 46%."
For the twelve months ended December 31, 2020, the company reported income from continuing operations attributable to common shareholders of $543.2 million, or $6.74 per share, compared to $435.5 million, or $5.28 per share in the prior year. Foreign exchange positively impacted earnings per share by $0.03. Revenue was $20.4 billion compared to $23.2 billion in the same period last year. For the twelve months ended December 31, 2020, income from continuing operations and related earnings per share include a net benefit of $8.3 million, or $0.10 per share, from an income tax benefit related to various U.S. and foreign tax legislation changes and a gain on dealership sales, partially offset by a loss on debt extinguishment. Excluding this net benefit, adjusted income from continuing operations increased 22.8% to $534.9 million, and related earnings per share increased 25.8% to $6.64.
Operational Highlights - Fourth Quarter 2020
-- Retail automotive same-store revenue increased 0.6%
-- Retail automotive same-store gross profit increased 5.7%
-- Retail automotive earnings before taxes increased 126.5%
-- Retail automotive same-store variable gross profit per unit retailed
increased 24.5%
-- Total gross margin increased 80 basis points to 15.5%
-- Adjusted SG&A expenses declined $46.6 million and SG&A as a percentage
of gross profit declined 800 basis points to 71.1%
Long-Term Debt
During 2020, we reduced our long-term debt by $670 million. We repaid in full, at scheduled maturity, our $300 million 3.75% senior subordinated notes and redeemed our $300 million 5.375% senior subordinated notes due in 2024. We also redeemed our $550 million 5.75% senior subordinated notes due 2022 with the proceeds of the newly issued $550 million in aggregate principal amount 3.50% senior subordinated notes due 2025. We expect the payoff and refinancing of these notes will generate annualized interest expense savings of approximately $27 million. As of December 31, 2020, non-vehicle long-term debt to total capitalization was reduced to 34% from 46% at the end of the prior year.
Used Vehicle SuperCenters
Penske Automotive Group opened a greenfield used vehicle SuperCenter site in Nottingham, U.K. during the fourth quarter and now operates seventeen Used Vehicle SuperCenters. For the three months ended December 31, 2020, same-store variable gross profit per unit retailed increased 20.4% to $2,351. Retail unit sales decreased by 22.6% to 11,923 while revenue decreased by 16.4% to $244.7 million largely as a result of COVID-related government-mandated closures in the U.K. For the twelve months ended December 31, 2020, SuperCenter retail unit sales decreased by 25.0% to 53,207 and revenue decreased by 17.0% to $1.0 billion.
Retail Commercial Truck Dealerships
Penske Automotive Group operates twenty-five medium and heavy-duty truck dealership locations in the U.S. and Canada offering primarily Freightliner and Western Star brands. For the three months ended December 31, 2020, earnings before taxes were $26.5 million compared to $21.0 million in the same period last year. During the quarter, total units retailed increased 16.0%, including a 1% increase in new units and a 106% increase in used units. For the twelve months ended December 31, 2020, earnings before taxes were $78.2 million compared to $86.5 million in the same period last year.
Penske Transportation Solutions
Penske Transportation Solutions ("PTS") is a leading provider of full-service truck leasing, truck rental, contract maintenance, and logistics services and is an integral part of the North American supply chain, providing supply chain and transportation services to its customers. The company has a 28.9% ownership interest in the PTS partnership and accounts for its ownership interest using the equity method of accounting. In addition to equity income, the company receives cash distributions and may recognize cash tax benefits from time to time. For the three and twelve months ended December 31, 2020, the company recorded $56.5 million and $164.5 million in earnings compared to $36.4 million and $142.4 million for the same period last year. The 55.2% increase in the fourth quarter was principally driven by improved operating results in full-service leasing and logistics and a reduction in operating expenses.
Growth and Expansion
Currently, we are constructing new franchised dealerships and have identified acquisition targets which are expected to add $600 million in estimated annualized revenue. Specifically, in January, we opened our second Porsche dealership in the Washington D.C. market that is expected to generate $50 million in annualized revenue. We also have an Audi dealership under construction in Southern California and a Honda dealership under construction in Texas. Both are expected to open by the end of the year and collectively generate approximately $100 million in annualized revenue.
During the fourth quarter we opened one used vehicle SuperCenter in Nottingham, U.K. As we look out across the next three years, our goal is to grow the used SuperCenter operations from 17 locations to 40 by the end of 2023. We expect our used SuperCenters operations will generate at least 150,000 in unit sales and $2.5 to $3.0 billion in total revenue, more than doubling the size of the existing business while generating earnings before taxes of approximately $100 million.
Dividend and Share Repurchases
On January 26, 2021, we announced an increase in the quarterly dividend to $0.43 per share, payable on March 1, 2021 to shareholders of record as of February 10, 2021.
For the twelve months ended December 31, 2020, the company repurchased 1,027,736 shares for $34.4 million. Approximately $170.6 million remains available to repurchase shares under the company's existing share repurchase authorization.
Conference Call
Penske Automotive Group will host a conference call discussing financial results relating to the fourth quarter of 2020 on Wednesday, February 10, 2021, at 2:00 p.m. Eastern Standard Time. To listen to the conference call, participants must dial (866) 394-1455 - [International, please dial (516) 575-8644] using access code 8644058. The call will also be simultaneously broadcast over the Internet through the Investors section of the Penske Automotive Group website. Additionally, an investor presentation relating to the fourth quarter 2020 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, the United Kingdom, 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 is a member of the Fortune 500 and Russell 1000 and 3000 indexes and is ranked among the World's Most Admired Companies by Fortune Magazine. 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 adjusted income from continuing operations, adjusted earnings per share, earnings before interest, taxes, depreciation, amortization ("EBITDA"), adjusted earnings before interest, taxes, depreciation, and amortization, and adjusted selling, general, and administrative expenses. 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 liquidity, and assessment of business conditions in light of the COVID-19 pandemic. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others: the duration, severity and resolution of the COVID-19 pandemic, government mandated restrictions on our business in light of COVID-19 or otherwise, economic conditions generally, conditions in the credit markets, changes in interest rates and foreign currency exchange rates, changes in tariff rates, new rules in place after the recent Brexit accord between the European Union and the U.K. could slow parts originating in the U.K. or Europe for distribution to our dealerships, adverse conditions affecting a particular manufacturer, including the adverse impact to the vehicle and parts supply chain due to limited vehicle availability due to the COVID-19 pandemic, the shortage of automotive semiconductor chips, 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, 2019, 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.
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 Twelve Months Ended
December 31, December 31,
2020 2019 Change 2020 2019 Change
Revenue $
5,812.1 $
5,881.4 (1.2)
%
% $
20,443.9 $
23,179.4 (11.8)
Cost of Sales 4,913.7 5,014.9 (2.0)
%
% 17,259.4 19,723.9 (12.5)
Gross Profit $
898.4 $
866.5 3.7 $
3,184.5 $
3,455.5 (7.8)
%
%
SG&A Expenses 625.8 685.1 (8.7)
%
% 2,364.5 2,693.2 (12.2)
Depreciation 30.1 28.6 5.2 115.5 109.6 5.4
% %
Operating Income $
242.5 $
152.8 58.7 $
704.5 $
652.7 7.9
% %
Floor Plan Interest Expense (8.9) (20.3) (56.2) (46.3) (84.5) (45.2)
% %
Other Interest Expense (28.7) (31.0) (7.4) (119.6) (124.2) (3.7)
% %
Equity in Earnings of Affiliates 58.4 37.9 54.1 169.0 147.5 14.6
% %
Income from Continuing Operations Before Income Taxes $
263.3 $
139.4 88.9 $
707.6 $
591.5 19.6
% %
Income Taxes (62.0) (38.1) 62.7 (162.7) (156.7) 3.8
% %
Income from Continuing Operations $
201.3 $
101.3 98.7 $
544.9 $
434.8 25.3
% %
Income from Discontinued Operations, net of tax 0.1
nm 0.4 0.3
nm
Net Income $
201.4 $
101.3 98.8 $
545.3 $
435.1 25.3
% %
Less: Income (Loss) Attributable to Non-Controlling Interests 1.2 (0.3)
nm 1.7 (0.7)
nm
Net Income Attributable to Common Shareholders $
200.2 $
101.6 97.0 $
543.6 $
435.8 24.7
% %
Amounts Attributable to Common Shareholders:
Reported Income from Continuing Operations $
201.3 $
101.3 98.7 $
544.9 $
434.8 25.3
% %
Less: Income (Loss) Attributable to Non-Controlling Interests 1.2 (0.3)
nm 1.7 (0.7)
nm
Income from Continuing Operations, net of tax $
200.1 $
101.6 96.9 $
543.2 $
435.5 24.7
% %
Income from Discontinued Operations, net of tax 0.1
nm 0.4 0.3
nm
Net Income Attributable to Common Shareholders $
200.2 $
101.6 97.0 $
543.6 $
435.8 24.7
% %
Income from Continuing Operations Per Share $
2.49 $
1.25 99.2 $
6.74 $
5.28 27.7
% %
Income Per Share $
2.49 $
1.25 99.2 $
6.74 $
5.28 27.7
% %
Weighted Average Shares Outstanding 80.4 81.1 (0.9) 80.6 82.5 (2.3)
% %
nm - not meaningful
PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Condensed Balance Sheets
(Amounts In Millions)
(Unaudited)
December 31, December 31,
2020 2019
Assets:
Cash and Cash Equivalents $
49.5 $
28.1
Accounts Receivable, Net 806.9 960.3
Inventories 3,425.6 4,260.7
Other Current Assets 126.8 85.0
Total Current Assets 4,408.8 5,334.1
Property and Equipment, Net 2,404.4 2,366.4
Operating Lease Right-of-Use Assets 2,416.5 2,360.5
Intangibles 2,491.8 2,463.2
Other Long-Term Assets 1,525.7 1,418.5
Total Assets $
13,247.2 $
13,942.7
Liabilities and Equity:
Floor Plan Notes Payable $
1,780.5 $
2,412.5
Floor Plan Notes Payable - Non-Trade 1,363.8 1,594.0
Accounts Payable 675.4 638.8
Accrued Expenses and Other Current Liabilities 767.2 701.9
Current Portion Long-Term Debt 87.5 103.3
Liabilities Held for Sale 0.5 0.5
Total Current Liabilities 4,674.9 5,451.0
Long-Term Debt 1,602.1 2,257.0
Long-Term Operating Lease Liabilities 2,350.3 2,301.2
Other Long-Term Liabilities 1,293.8 1,121.9
Total Liabilities 9,921.1 11,131.1
Equity 3,326.1 2,811.6
Total Liabilities and Equity $
13,247.2 $
13,942.7
Supplemental Balance Sheet Information
New vehicle days' supply 50 71
Used vehicle days' supply 48 52
PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Condensed Statements of Cash Flow
Amounts in Millions
(Unaudited)
Twelve Months Ended
December 31,
2020 2019
Operating Activities:
Net cash provided by continuing
operating activities 1,201.5 518.3
Investing Activities:
Purchase of equipment and
improvements (185.9) (245.3)
Proceeds from sale of dealerships 40.6 22.8
Proceeds from sale-leaseback
transactions 18.9
Proceeds from sale of equipment
and improvements 19.8 8.6
Acquisitions net, including
repayment of sellers' floor plan
notes payable of $0 and $138.5,
respectively (326.9)
Other (11.0) (10.8)
Net cash used in continuing
investing activities (136.5) (532.7)
Financing Activities:
Proceeds from borrowings under
U.S. credit agreement revolving
credit line 1,797.0 1,808.0
Repayments under U.S. credit
agreement revolving credit line (1,734.0) (1,793.0)
Issuance of 3.50% senior
subordinated notes 550.0
Repayment of 3.75% senior
subordinated notes (300.0)
Repayment of 5.375% senior
subordinated notes (300.0)
Repayment of 5.75% senior
subordinated notes (550.0)
Net (repayments) borrowings of
other long-term debt (144.4) 115.4
Net (repayments) borrowings of
floor plan notes payable - non-
trade (230.2) 177.5
Payments for contingent
consideration (31.6)
Repurchases of common stock (29.4) (169.2)
Dividends (68.1) (130.8)
Payment of debt issuance costs (8.1) (0.4)
Other (5.1) (4.9)
Net cash (used in) provided by
continuing financing activities (1,053.9) 2.6
Net cash provided by discontinued
operations 0.3 0.3
Effect of exchange rate changes
on cash and cash equivalents 10.0 0.2
Net change in cash and cash
equivalents 21.4 (11.3)
Cash and cash equivalents,
beginning of period 28.1 39.4
Cash and cash equivalents, end of
period $
49.5 $
28.1
Supplemental disclosures of cash
flow information:
Cash paid for:
Interest $
168.5 $
204.9
Income taxes 17.9 92.4
Non cash activities:
Contingent consideration
$ 10.6
PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Operations
Selected Data
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2020 2019 2020 2019
Geographic Revenue Mix:
North America 61.3 62.4 60.3 59.3
% % % %
U.K. 29.9 29.3 31.0 32.6
% % % %
Other International 8.8 8.3 8.7 8.1
% % % %
Total 100.0 100.0 100.0 100.0
% % % %
Revenue: (Amounts in Millions)
Retail Automotive $
5,100.7 $
5,162.7 $
17,928.8 $
20,615.8
Retail Commercial Trucks 579.4 599.1 2,060.9 2,050.5
Commercial Vehicles Australia/Power
Systems and Other 132.0 119.6 454.2 513.1
Total $
5,812.1 $
5,881.4 $
20,443.9 $
23,179.4
Gross Profit: (Amounts in Millions)
Retail Automotive $
787.2 $
755.1 $
2,781.3 $
3,038.9
Retail Commercial Trucks 78.8 78.3 280.9 277.8
Commercial Vehicles Australia/Power
Systems and Other 32.4 33.1 122.3 138.8
Total $
898.4 $
866.5 $
3,184.5 $
3,455.5
Gross Margin:
Retail Automotive 15.4 14.6 15.5 14.7
% % % %
Retail Commercial Trucks 13.6 13.1 13.6 13.5
% % % %
Commercial Vehicles Australia/Power 24.5 27.7 26.9 27.1
Systems and Other % % % %
Total 15.5 14.7 15.6 14.9
% % % %
Three Months Ended Twelve Months Ended
December 31, December 31,
2020 2019 2020 2019
Operating Items
as a
Percentage of
Revenue:
Gross Profit 15.5 14.7
% %
% % 15.6 14.9
Selling,
General and % %
Administrative % %
Expenses 10.8 11.6 11.6 11.6
Operating 4.2 2.6
Income % %
% % 3.4 2.8
Income from
Continuing % %
Operations % %
Before Income
Taxes 4.5 2.4 3.5 2.6
Operating Items
as a
Percentage of
Total Gross
Profit:
Selling,
General and % %
Administrative % %
Expenses 69.7 79.1 74.3 77.9
Operating 27.0 17.6
Income % %
% % 22.1 18.9
Three Months Ended Twelve Months Ended
December 31, December 31,
(Amounts in
Millions) 2020 2019 2020 2019
EBITDA (1) $
322.1 $
199.0 $
942.7 $
825.3
Floorplan Credits $
11.8 $
9.9 $
39.1 $
37.2
Rent Expense $
58.7 $
58.6 $
231.8 $
232.0
Stock Repurchases
$
$ $
34.4 $
174.1
(1) See the following Non-GAAP
reconciliation table.
PENSKE AUTOMOTIVE GROUP, INC.
Retail Automotive Operations
Selected Data - Revenue and Gross Profit Mix
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2020 2019 2020 2019
Retail Automotive Revenue Mix:
Premium:
BMW / MINI 24 24 23 23
% % % %
Audi 12 12 12 12
% % % %
Mercedes-Benz 10 10 10 10
% % % %
Land Rover / Jaguar 9 8 9 9
% % % %
Porsche 8 7 7 6
% % % %
Ferrari / Maserati 3 3 3 3
% % % %
Lexus 3 3 3 3
% % % %
Acura 1 1 1 1
% % % %
Bentley 1 1 1 1
% % % %
Others 2 2 2 2
% % % %
Total Premium 73 71 71 70
% % % %
Volume Non-U.S.:
Toyota 11 10 11 10
% % % %
Honda 5 6 6 6
% % % %
Volkswagen 2 3 2 4
% % % %
Nissan 1 1 1 1
% % % %
Others 2 2 2 2
% % % %
Total Volume Non-U.S. 21 22 22 23
% % % %
U.S.:
General Motors /Chrysler /Ford 1 1 1 1
% % % %
Stand-Alone Used 5 6 6 6
% % % %
Total 100 100 100 100
% % % %
Retail Automotive Geographic
Revenue Mix:
U.S. 58 60 57 57
% % % %
U.K. 34 33 36 37
% % % %
Other International 8 7 7 6
% % % %
Total 100 100 100 100
% % % %
Retail Automotive Geographic
Gross Profit Mix:
U.S. 62 63 63 61
% % % %
U.K. 31 31 32 33
% % % %
Other International 7 6 5 6
% % % %
Total 100 100 100 100
% % % %
PENSKE AUTOMOTIVE GROUP, INC.
Retail Automotive Operations
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2020 2019 Change 2020 2019 Change
Retail Automotive Units:
New Retail 52,041 55,974 (7.0)
%
% 178,437 222,704 (19.9)
Used Retail 57,013 65,284 (12.7) 233,469 284,190 (17.8)
% %
Total 109,054 121,258 (10.1) 411,906 506,894 (18.7)
% %
Retail Automotive Revenue:
(Amounts in Millions)
New Vehicles $
2,480.7 $
2,445.4 1.4 $
8,080.5 $
9,329.5 (13.4)
% %
Used Vehicles 1,674.9 1,712.0 (2.2)
%
% 6,414.7 7,241.2 (11.4)
Finance and Insurance, Net 160.5 160.6 (0.1)
%
% 576.3 652.1 (11.6)
Service and Parts 503.4 541.9 (7.1)
%
% 1,883.7 2,195.9 (14.2)
Fleet and Wholesale 281.2 302.8 (7.1)
%
% 973.6 1,197.1 (18.7)
Total Revenue $
5,100.7 $
5,162.7 (1.2)
%
% $
17,928.8 $
20,615.8 (13.0)
Retail Automotive Gross Profit:
(Amounts in Millions)
New Vehicles $
215.2 $
183.9 17.0 $
652.8 $
695.6 (6.2)
%
%
Used Vehicles 104.0 81.9 27.0 388.9 366.1 6.2
% %
Finance and Insurance, Net 160.5 160.6 (0.1)
%
% 576.3 652.1 (11.6)
Service and Parts 300.4 324.4 (7.4)
%
% 1,127.4 1,305.8 (13.7)
Fleet and Wholesale 7.1 4.3 65.1 35.9 19.3 86.0
% %
Total Gross Profit $
787.2 $
755.1 4.3 $
2,781.3 $
3,038.9 (8.5)
%
%
Retail Automotive Revenue Per
Vehicle Retailed:
New Vehicles $
47,669 $
43,689 9.1 $
45,285 $
41,892 8.1
% %
Used Vehicles 29,380 26,224 12.0 27,476 25,480 7.8
% %
Retail Automotive Gross Profit
Per Vehicle Retailed:
New Vehicles $
4,136 $
3,286 25.9 $
3,659 $
3,124 17.1
% %
Used Vehicles 1,823 1,255 45.3 1,666 1,288 29.3
% %
Finance and Insurance 1,470 1,324 11.0 1,399 1,287 8.7
% %
Retail Automotive Gross Margin:
New Vehicles 8.7 7.5 +120
bps 8.1 7.5
% % % % 60
bps
Used Vehicles 6.2 4.8 +140
bps 6.1 5.1
% % % % +100
bps
Service and Parts 59.7 59.9 (20)
bps 59.9 59.5
% % % % 40
bps
Fleet and Wholesale 2.5 1.4 +110
bps 3.7 1.6
% % % % +210
bps
Total Gross Margin 15.4 14.6 80
bps 15.5 14.7
% % % % 80
bps
Retail Automotive Revenue Mix
Percentages:
New Vehicles 48.6 47.4 +120
bps 45.1 45.3
% % % % (20)
bps
Used Vehicles 32.8 33.2 (40)
bps 35.8 35.1
% % % % 70
bps
Finance and Insurance, Net 3.1 3.1
bps 3.2 3.2
% % % %
bps
Service and Parts 9.9 10.5 (60)
bps 10.5 10.7
% % % % (20)
bps
Fleet and Wholesale 5.6 5.8 (20)
bps 5.4 5.7
% % % % (30)
bps
Total 100.0 100.0 100.0 100.0
% % % %
Retail Automotive Gross Profit
Mix Percentages:
New Vehicles 27.3 24.4 +290
bps 23.5 22.9
% % % % 60
bps
Used Vehicles 13.2 10.8 +240
bps 14.0 12.0
% % % % +200
bps
Finance and Insurance, Net 20.4 21.3 (90)
bps 20.7 21.5
% % % % (80)
bps
Service and Parts 38.2 43.0 (480)
bps 40.5 43.0
% % % % (250)
bps
Fleet and Wholesale 0.9 0.5 40
bps 1.3 0.6
% % % % 70
bps
Total 100.0 100.0 100.0 100.0
% % % %
PENSKE AUTOMOTIVE GROUP, INC.
Retail Automotive Operations Same-Store
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2020 2019 Change 2020 2019 Change
Retail Automotive Same-Store
Units:
New Retail 51,751 54,257 (4.6)
%
% 176,153 212,848 (17.2)
Used Retail 55,901 63,538 (12.0) 226,920 273,732 (17.1)
% %
Total 107,652 117,795 (8.6)
%
% 403,073 486,580 (17.2)
Retail Automotive Same-Store
Revenue: (Amounts in Millions)
New Vehicles $
2,471.8 $
2,388.0 3.5 $
8,007.2 $
9,013.4 (11.2)
% %
Used Vehicles 1,655.3 1,673.5 (1.1)
%
% 6,289.4 7,015.2 (10.3)
Finance and Insurance, Net 158.7 157.4 0.8 566.1 634.0 (10.7)
% %
Service and Parts 501.2 530.8 (5.6)
%
% 1,867.4 2,134.3 (12.5)
Fleet and Wholesale 279.1 285.0 (2.1)
%
% 953.2 1,148.3 (17.0)
Total Revenue $
5,066.1 $
5,034.7 0.6 $
17,683.3 $
19,945.2 (11.3)
% %
Retail Automotive Same-Store
Gross Profit: (Amounts in
Millions)
New Vehicles $
214.7 $
180.8 18.8 $
648.7 $
676.2 (4.1)
%
%
Used Vehicles 103.2 80.8 27.7 382.4 359.8 6.3
% %
Finance and Insurance, Net 158.7 157.4 0.8 566.1 634.0 (10.7)
% %
Service and Parts 299.0 317.1 (5.7)
%
% 1,115.7 1,266.3 (11.9)
Fleet and Wholesale 7.4 4.6 60.9 35.1 20.0 75.5
% %
Total Gross Profit $
783.0 $
740.7 5.7 $
2,748.0 $
2,956.3 (7.0)
%
%
Retail Automotive Same-Store
Revenue Per Vehicle Retailed:
New Vehicles $
47,764 $
44,012 8.5 $
45,456 $
42,347 7.3
% %
Used Vehicles 29,611 26,339 12.4 27,716 25,628 8.1
% %
Retail Automotive Same-Store
Gross Profit Per Vehicle
Retailed:
New Vehicles $
4,150 $
3,332 24.5 $
3,683 $
3,177 15.9
% %
Used Vehicles 1,847 1,272 45.2 1,685 1,314 28.2
% %
Finance and Insurance 1,475 1,336 10.4 1,404 1,303 7.8
% %
Retail Automotive Same-Store
Gross Margin:
New Vehicles 8.7 7.6 +110
bps 8.1 7.5
% % % % 60
bps
Used Vehicles 6.2 4.8 +140
bps 6.1 5.1
% % % % +100
bps
Service and Parts 59.7 59.7
bps 59.7 59.3
% % % % 40
bps
Fleet and Wholesale 2.7 1.6 +110
bps 3.7 1.7
% % % % +200
bps
Total Gross Margin 15.5 14.7 80
bps 15.5 14.8
% % % % 70
bps
Retail Automotive Revenue Mix
Percentages:
New Vehicles 48.8 47.4 +140
bps 45.3 45.2
% % % % 10
bps
Used Vehicles 32.7 33.2 (50)
bps 35.6 35.2
% % % % 40
bps
Finance and Insurance, Net 3.1 3.1
bps 3.2 3.2
% % % %
bps
Service and Parts 9.9 10.5 (60)
bps 10.6 10.7
% % % % (10)
bps
Fleet and Wholesale 5.5 5.8 (30)
bps 5.3 5.7
% % % % (40)
bps
Total 100.0 100.0 100.0 100.0
% % % %
Retail Automotive Gross Profit
Mix Percentages:
New Vehicles 27.4 24.4 +300
bps 23.6 22.9
% % % % 70
bps
Used Vehicles 13.2 10.9 +230
bps 13.9 12.2
% % % % +170
bps
Finance and Insurance, Net 20.3 21.3 (100)
bps 20.6 21.4
% % % % (80)
bps
Service and Parts 38.2 42.8 (460)
bps 40.6 42.8
% % % % (220)
bps
Fleet and Wholesale 0.9 0.6 30
bps 1.3 0.7
% % % % 60
bps
Total 100.0 100.0 100.0 100.0
% % % %
PENSKE AUTOMOTIVE GROUP, INC.
Retail Commercial Truck Operations
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2020 2019 Change 2020 2019 Change
Retail Commercial Truck Units:
New Retail 3,254 3,209 1.4 11,324 11,897 (4.8)
%
%
Used Retail 1,071 519 106.4
%
% 3,826 1,954 95.8
Total 4,325 3,728 16.0 15,150 13,851 9.4
% %
Retail Commercial Truck
Revenue: (Amounts in Millions)
New Vehicles $
385.5 $
367.6 4.9 $
1,315.9 $
1,347.2 (2.3)
%
%
Used Vehicles 58.8 29.2 101.4
%
% 194.2 117.0 66.0
Finance and Insurance, Net 4.0 3.4 17.6 14.5 12.4 16.9
% %
Service and Parts 120.0 162.6 (26.2) 478.1 503.3 (5.0)
%
%
Wholesale and Other 11.1 36.3 (69.4) 58.2 70.6 (17.6)
% %
Total Revenue $
579.4 $
599.1 (3.3)
%
% $
2,060.9 $
2,050.5 0.5
Retail Commercial Truck Gross
Profit: (Amounts in Millions)
New Vehicles $
16.0 $
17.6 (9.1)
%
% $
50.4 $
61.4 (17.9)
Used Vehicles 4.9 0.3
nm
% 0.4 9.2 (95.7)
%
Finance and Insurance, Net 4.0 3.4 17.6 14.5 12.4 16.9
% %
Service and Parts 51.9 53.8 (3.5)
%
% 207.3 182.4 13.7
Wholesale and Other 2.0 3.2 (37.5) 8.3 12.4 (33.1)
% %
Total Gross Profit $
78.8 $
78.3 0.6 $
280.9 $
277.8 1.1
% %
Retail Commercial Truck Revenue
Per Vehicle Retailed:
New Vehicles $
118,471 $
114,573 3.4 $
116,201 $
113,239 2.6
% %
Used Vehicles 54,878 56,041 (2.1)
%
% 50,747 59,865 (15.2)
Retail Commercial Truck Gross
Profit Per Vehicle Retailed:
New Vehicles $
4,911 $
5,505 (10.8) $
4,451 $
5,164 (13.8)
% %
Used Vehicles 4,578 546 738.5
%
% 97 4,706 (97.9)
Finance and Insurance 925 917 0.9 959 896 7.0
% %
Retail Commercial Truck Gross
Margin:
New Vehicles 4.2 4.8 (60)
bps 3.8 4.6
% % % % (80)
bps
Used Vehicles 8.3 1.0 +730
bps 0.2 7.9
% % % % (770)
bps
Service and Parts 43.3 33.1 1,020
bps 43.4 36.2
% % % % +720
bps
Total Gross Margin 13.6 13.1 50
bps 13.6 13.5
% % % % 10
bps
Retail Commercial Truck Revenue
Mix Percentages:
New Vehicles 66.5 61.4 +510
bps 63.9 65.7
% % % % (180)
bps
Used Vehicles 10.1 4.9 +520
bps 9.4 5.7
% % % % +370
bps
Finance and Insurance, Net 0.7 0.6 10
bps 0.7 0.6
% % % % 10
bps
Service and Parts 20.7 27.1 (640)
bps 23.2 24.5
% % % % (130)
bps
Wholesale and Other 2.0 6.0 (400)
bps 2.8 3.5
% % % % (70)
bps
Total 100.0 100.0 100.0 100.0
% % % %
Retail Commercial Truck Gross
Profit Mix Percentages:
New Vehicles 20.3 22.5 (220)
bps 17.9 22.1
% % % % (420)
bps
Used Vehicles 6.2 0.4 +580
bps 0.1 3.3
% % % % (320)
bps
Finance and Insurance, Net 5.1 4.3 80
bps 5.2 4.5
% % % % 70
bps
Service and Parts 65.9 68.7 (280)
bps 73.8 65.7
% % % % +810
bps
Wholesale and Other 2.5 4.1 (160)
bps 3.0 4.4
% % % % (140)
bps
Total 100.0 100.0 100.0 100.0
% % % %
PENSKE AUTOMOTIVE GROUP, INC.
Retail Commercial Truck Operations Same-Store
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2020 2019 Change 2020 2019 Change
Retail Commercial Truck Same-
Store Units:
New Retail 3,254 3,209 1.4 7,577 8,415 (10.0)
% %
Used Retail 1,071 519 106.4
%
% 2,530 1,644 53.9
Total 4,325 3,728 16.0 10,107 10,059 0.5
% %
Retail Commercial Truck Same-
Store Revenue: (Amounts in
Millions)
New Vehicles $
385.5 $
367.6 4.9 $
885.9 $
934.3 (5.2)
%
%
Used Vehicles 58.8 29.2 101.4
%
% 129.7 97.8 32.6
Finance and Insurance, Net 4.0 3.4 17.6 10.9 10.7 1.9
% %
Service and Parts 120.0 162.6 (26.2) 335.4 371.9 (9.8)
%
%
Wholesale and Other 11.1 36.3 (69.4) 25.7 21.0 22.4
% %
Total Revenue $
579.4 $
599.1 (3.3) $
1,387.6 $
1,435.7 (3.4)
% %
Retail Commercial Truck Same-
Store Gross Profit: (Amounts
in Millions)
New Vehicles $
16.0 $
17.6 (9.1)
%
% $
34.2 $
40.1 (14.7)
Used Vehicles 4.9 0.3
nm
% 5.2 7.9 (34.2)
%
Finance and Insurance, Net 4.0 3.4 17.6 10.9 10.7 1.9
% %
Service and Parts 51.9 53.8 (3.5) 135.9 146.8 (7.4)
% %
Wholesale and Other 2.0 3.2 (37.5) 14.9 12.0 24.2
% %
Total Gross Profit $
78.8 $
78.3 0.6 $
201.1 $
217.5 (7.5)
%
%
Retail Commercial Truck Same-
Store Revenue Per Vehicle
Retailed:
New Vehicles $
118,471 $
114,573 3.4 $
116,915 $
111,024 5.3
% %
Used Vehicles 54,878 56,041 (2.1)
%
% 51,279 59,510 (13.8)
Retail Commercial Truck Same-
Store Gross Profit Per Vehicle
Retailed:
New Vehicles $
4,911 $
5,505 (10.8) $
4,513 $
4,762 (5.2)
%
%
Used Vehicles 4,578 546 738.5
%
% 2,073 4,836 (57.1)
Finance and Insurance 925 917 0.9 1,075 1,068 0.7
% %
Retail Commercial Truck Same-
Store Gross Margin:
New Vehicles 4.2 4.8 (60)
bps 3.9 4.3
% % % % (40)
bps
Used Vehicles 8.3 1.0 +730
bps 4.0 8.1
% % % % (410)
bps
Service and Parts 43.3 33.1 1,020
bps 40.5 39.5
% % % % +100
bps
Total Gross Margin 13.6 13.1 50
bps 14.5 15.1
% % % % (60)
bps
Retail Commercial Truck Revenue
Mix Percentages:
New Vehicles 66.5 61.4 +510
bps 63.8 65.1
% % % % (130)
bps
Used Vehicles 10.1 4.9 +520
bps 9.3 6.8
% % % % +250
bps
Finance and Insurance, Net 0.7 0.6 10
bps 0.8 0.7
% % % % 10
bps
Service and Parts 20.7 27.1 (640)
bps 24.2 25.9
% % % % (170)
bps
Wholesale and Other 2.0 6.0 (400)
bps 1.9 1.5
% % % % 40
bps
Total 100.0 100.0 100.0 100.0
% % % %
Retail Commercial Truck Gross
Profit Mix Percentages:
New Vehicles 20.3 22.5 (220)
bps 17.0 18.4
% % % % (140)
bps
Used Vehicles 6.2 0.4 +580
bps 2.6 3.6
% % % % (100)
bps
Finance and Insurance, Net 5.1 4.3 80
bps 5.4 4.9
% % % % 50
bps
Service and Parts 65.9 68.7 (280)
bps 67.6 67.5
% % % % 10
bps
Wholesale and Other 2.5 4.1 (160)
bps 7.4 5.6
% % % % +180
bps
Total 100.0 100.0 100.0 100.0
% % % %
PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Non-GAAP Reconciliations
(Unaudited)
The following tables reconcile reported income from continuing operations and earnings per share to adjusted income from continuing operations and adjusted earnings per share for the three and twelve months ended December 31, 2020, and 2019:
Income from Continuing Operations:
Three Months Ended Twelve Months Ended
(Amounts in Millions) December 31, December 31,
2020 2019 % Change 2020 2019 % Change
Income from Continuing Operations $
200.1 $
101.6 96.9 $
543.2 $
435.5 24.7
% %
U.S. and foreign tax legislation
changes 4.0
nm (11.4)
nm
Net gain on dealership sales (2) (9.4)
nm (3.3)
nm
Loss on debt extinguishment (3) 5.1
nm 6.4
nm
Adjusted Income from Continuing $
199.9 (1) $
101.6 96.8 $
534.9 $
435.5 22.8
Operations % %
Earnings Per Share:
Three Months Ended Twelve Months Ended
December 31, December 31,
2020 2019 % Change 2020 2019 % Change
Earnings Per Share from $
2.49 $
1.25 99.2 $
6.74 $
5.28 27.7
Continuing Operations % %
U.S. and foreign tax
legislation changes 0.05
nm (0.14)
nm
Net gain on dealership sales
(2) (0.12)
nm (0.04)
nm
Loss on debt extinguishment
(3) 0.06
nm 0.08
nm
Adjusted Earnings Per Share $
2.49 (1) $
1.25 99.2 $
6.64 $
5.28 25.8
from Continuing Operations % %
(1) May not sum due to rounding.
(2) Relates to the net gain on the sale
of various dealerships in the U.S.
and U.K.
(3) Relates to a net loss on the
extinguishment of our $550 million
in aggregate principal amount of
5.75% senior subordinated notes due
2022 and our $300 million 5.375%
senior subordinated notes due 2024.
The following tables reconcile reported selling, general and administrative expenses ("SG&A") and SG&A to gross profit to adjusted SG&A and adjusted SG&A to gross profit for the three and twelve months ended December 31, 2020, and 2019:
Three Months Ended
December 31, 2020 vs. 2019
(Amounts in Millions) 2020 2019 Change % Change
Selling, General & Administrative Expenses $
625.8 $
685.1 $
(59.3) (8.7)
%
Add: Net gain on dealership sales (2) 12.7 12.7
nm
Adjusted Selling, General & Administrative Expenses $
638.5 $
685.1 $
(46.6) (6.8)
%
Selling, General and Administrative Expenses to Gross Profit 69.7 79.1
% % (940)
bps
nm
Adjusted Selling, General & Administrative Expenses to Gross Profit 71.1 79.1
% % (800)
bps
nm
Twelve Months Ended
December 31, 2020 vs. 2019
(Amounts in Millions) 2020 2019 Change % Change
Selling, General & Administrative $
2,364.5 $
2,693.2 $
(328.7) (12.2)
Expenses %
Add: Net gain on dealership sales
(2) 5.2 5.2
nm
Adjusted Selling, General & $
2,369.7 $
2,693.2 $
(323.5) (12.0)
Administrative Expenses %
Selling, General and
Administrative Expenses to Gross % %
Profit 74.3 77.9 (360)
bps
nm
Adjusted Selling, General &
Administrative Expenses to Gross % %
Profit 74.4 77.9 (350)
bps
nm
PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Non-GAAP Reconciliations
(Unaudited)
The following tables reconcile reported net income to earnings before interest, taxes, depreciation, and amortization ("EBITDA") for the three and twelve months ended December 31, 2020, and 2019:
Three Months Ended
December 31, 2020 vs. 2019
(Amounts in Millions) 2020 2019 Change % Change
Net Income $
201.4 $
101.3 $
100.1 98.8
%
Add: Depreciation 30.1 28.6 1.5 5.2
%
Other Interest Expense 28.7 31.0 (2.3) (7.4)
%
Income Taxes 62.0 38.1 23.9 62.7
%
Income from Discontinued
Operations, net of tax (0.1) (0.1)
nm
EBITDA $
322.1 $
199.0 $
123.1 61.9
%
Less: Net gain on dealership sales (9.4) (9.4)
nm
Add: Loss on debt extinguishment 5.1 5.1
nm
Adjusted EBITDA $
317.8 $
199.0 $
118.8 59.7
%
Twelve Months Ended
December 31, 2020 vs. 2019
(Amounts in Millions) 2020 2019 Change % Change
Net Income $
545.3 $
435.1 $
110.2 25.3
%
Add: Depreciation 115.5 109.6 5.9 5.4
%
Other Interest Expense 119.6 124.2 (4.6) (3.7)
%
Income Taxes 162.7 156.7 6.0 3.8
%
Income from Discontinued
Operations, net of tax (0.4) (0.3) (0.1)
nm
EBITDA $
942.7 $
825.3 $
117.4 14.2
%
Less: Net gain on dealership sales (3.3) (3.3)
nm
Add: Loss on debt extinguishment 6.4 6.4
nm
Adjusted EBITDA $
945.8 $
825.3 $
120.5 14.6
%
nm - not meaningful
View original content to download multimedia:http://www.prnewswire.com/news-releases/penske-automotive-reports-record-results-301225638.html
SOURCE Penske Automotive Group, Inc.
