PENSKE AUTOMOTIVE GROUP REPORTS QUARTERLY RESULTS
Revenue Increases 3% to $7.7 Billion, a Quarterly Record
Record Retail Automotive Service and Parts Revenue of $753 Million, up 10%
Earnings Before Taxes of $326 Million and Earnings Per Share of $3.61
Sequential Improvement in Earnings Before Taxes and Earnings Per Share of 10% and 12%, Respectively, from First Quarter of 2024
BLOOMFIELD HILLS, Mich., July 31, 2024 /PRNewswire/ -- Penske Automotive Group, Inc. (NYSE: PAG), a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers, today announced quarterly results for the second quarter of 2024. For the quarter, revenue increased 3% from the second quarter of 2023 to $7.7 billion. Net income attributable to common stockholders was $241.2 million compared to $300.8 million in the prior year period, and related earnings per share was $3.61 compared to $4.41 for the same period in 2023. Foreign currency exchange negatively impacted revenue by $0.8 million, net income attributable to common stockholders by $0.4 million, and had no impact on earnings per share.
Second Quarter 2024 Operating Highlights Compared to Second Quarter 2023
-- New and Used Retail Automotive Units Delivered - increased 2%
-- New Vehicle +4%; Used Vehicle flat
-- Retail Automotive Same-Store Revenue - decreased 1%
-- New Vehicle +2%; Used Vehicle -6%; Finance & Insurance -4%; Service
& Parts +5%
-- Retail Automotive Same-Store Gross Profit - decreased 5%
-- New Vehicle -15%; Used Vehicle -7%; Finance & Insurance -4%; Service
& Parts +4%
-- New and Used Retail Commercial Truck Units - flat
-- New Vehicle -1%; Used Vehicle +9%
-- Retail Commercial Truck Same-Store Revenue - decreased 7%
-- New Vehicle -4%; Used Vehicle -10%; Finance & Insurance -22%;
Service & Parts -9%
-- Retail Commercial Truck Same-Store Gross Profit - decreased 5%
-- New Vehicle flat; Used Vehicle -5%; Finance & Insurance -22%;
Service & Parts -5%
Second Quarter 2024 Performance
The Company's financial performance for the three months ended June 30, 2024, was driven by its diversification which included continued strong performance of the retail automotive and commercial truck businesses. Highlights during the second quarter included record total quarterly revenue of $7.7 billion, which included a 10% increase in quarterly retail automotive service and parts revenue to $753 million, which is also a quarterly record. In addition, on a sequential basis, retail automotive gross profit per new vehicle retailed improved by $73 and equity earnings from the Company's investment in Penske Transportation Solutions increased 63%. As a result, when compared to the first quarter of 2024, earnings before taxes increased 10% and earnings per share increased 12%.
Commenting on the Company's financial results, Chair and CEO Roger Penske said, "I am pleased to see that our service and parts business remains strong and contributed to our record total quarterly revenue of $7.7 billion. In addition, our focus on efficiency and controlling costs drove a sequential decline in selling, general, and administrative expenses as a percentage of gross profit by 50 basis points to 70.2%."
For the six months ended June 30, 2024, revenue increased 2% to $15.1 billion. Net income attributable to common stockholders was $456.4 million compared to $599.1 million in the prior year period, and related earnings per share was $6.81 compared to $8.72 for the same period in 2023. Foreign currency exchange positively impacted revenue by $97.3 million, net income attributable to common stockholders by $1.0 million, and earnings per share by $0.01.
Retail Automotive Dealerships
For the three months ended June 30, 2024, total new and used units delivered increased 2% to 126,653, and total retail automotive revenue increased 3% to $6.6 billion. Same-store new and used units delivered decreased 1% to 120,486, and same-store revenue decreased 1%. Same-store service and parts revenue and gross profit increased 5% and 4%, respectively. Total retail automotive gross profit decreased 1% to $1.1 billion, including a 5% decrease on a same-store basis.
Retail Commercial Truck Dealerships
As of June 30, 2024, Premier Truck Group operated 48 North American retail commercial truck locations. New truck demand continues to be driven by replacement purchases. For the three months ended June 30, 2024, retail unit sales were flat. Revenue was $892.3 million compared to $919.2 million in the same period last year. Earnings before taxes was $51.7 million compared to $55.5 million in the same period in 2023. For the six months ended June 30, 2024, revenue was $1.7 billion compared to $1.8 billion in the same period last year. Earnings before taxes was $102.2 million compared to $112.6 million in the same period in 2023.
Penske Transportation Solutions Investment
Penske Transportation Solutions ("PTS") is a leading provider of full-service truck leasing, truck rental, contract maintenance, and logistics services. PTS operates a managed fleet with over 446,000 trucks, tractors, and trailers under lease, rental and/or maintenance contracts. Penske Automotive Group has a 28.9% ownership interest in PTS and accounts for its ownership interest using the equity method of accounting. For the three and six months ended June 30, 2024, the Company recorded $52.9 million and $85.4 million in earnings compared to $73.3 million and $154.1 million for the same periods in 2023. Equity earnings increased by 63% sequentially as full-service leasing continued to perform well and rental utilization improved when compared to the three months ended March 31, 2024.
Corporate Development, Capital Allocation, Liquidity, and Leverage
During the six months ended June 30, 2024, we repurchased 0.4 million shares of common stock for approximately $58.1 million under our securities repurchase program and also acquired 0.1 million shares of our common stock for $18.3 million from employees in connection with a net share settlement feature of employee equity awards. As of June 30, 2024, $157.4 million remained available under the Company's existing repurchase authority. Additionally, the Board of Directors approved a quarterly dividend of $1.07 per share representing an 11%, or $0.11 per share, increase and represents the third increase to the Company's dividend in 2024 and the 15(th) consecutive quarterly increase. The dividend is payable September 4, 2024, to shareholders of record as of August 15, 2024. Including this dividend distribution and the Company's securities repurchases, the Company will have returned approximately $271 million to shareholders in 2024.
During June 2024, we acquired three full-service Freightliner and Western Star dealerships and two independent repair facilities operating in Minnesota and Wisconsin from River States Truck and Trailer, representing $200 million in estimated annualized revenue. In July 2024, we announced the acquisition of Bill Brown Ford, representing $550 million in estimated annualized revenue. Year-to-date 2024, Penske Automotive Group has completed acquisitions representing nearly $2 billion in estimated annualized revenue.
As of June 30, 2024, the Company had approximately $1.7 billion in liquidity, including $115 million in cash and $1.6 billion of availability under its U.S. and international credit agreements. The Company's leverage ratio at June 30, 2024 was 1.2x.
Conference Call
Penske Automotive Group will host a conference call discussing financial results relating to the second quarter of 2024 on Wednesday, July 31, 2024, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (877) 692-8955 [International, please dial (234) 720-6979] using access code 8247256. The call will also be simultaneously broadcast over the Internet, available through the Investors section of the Penske Automotive Group website. Additionally, an investor presentation relating to the second quarter 2024 financial results has been posted to the Investors section of 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 a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers. PAG operates dealerships in the United States, the United Kingdom, Canada, Germany, Italy, Japan, and Australia and is one of the largest retailers of commercial trucks in North America for Freightliner. PAG also distributes and retails commercial vehicles, diesel and gas engines, power systems, and related parts and services principally in Australia and New Zealand. PAG employs over 28,850 people worldwide. Additionally, PAG owns 28.9% of Penske Transportation Solutions ("PTS"), a business that employs over 44,000 people worldwide, manages one of the largest, most comprehensive and modern trucking fleets in North America with over 446,000 trucks, tractors, and trailers under lease, rental, and/or maintenance contracts and provides innovative transportation, supply chain, and technology solutions to its customers. PAG is a member of the S&P Mid Cap 400, Fortune 500, Russell 1000, and Russell 3000 indexes. For additional information, including the Company's 2023 Corporate Responsibility Report highlighting its corporate responsibility strategies, activities, and certain metrics, 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"), adjusted EBITDA, and leverage ratio. 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 financial performance and future plans. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others, our ability to successfully complete pending acquisitions and satisfy applicable closing conditions, our ability to successfully integrate acquired dealerships into our existing operations and obtain certain contemplated synergies, those related to macro-economic, geo-political and industry conditions and events, including their impact on new and used vehicle sales, the availability of consumer credit, changes in consumer demand, consumer confidence levels, fuel prices, demand for trucks to move freight with respect to PTS and PTG, personal discretionary spending levels, interest rates, and unemployment rates; our ability to obtain vehicles and parts from our manufacturers, especially in light of supply chain disruptions due to natural disasters, the shortage of vehicle components, international conflicts, including the war in Ukraine, challenges in sourcing labor, or labor strikes or work stoppages, or other disruptions; changes in the retail model either from direct sales by manufacturers, a transition to an agency model of sales, sales by online competitors, or from the expansion of electric vehicles; disruptions to the security and availability of our information technology systems and our third party providers, which systems are increasing threatened by ransomware and other cyber attacks, the effects of a pandemic on the global economy, including our ability to react effectively to changing business conditions in light of any pandemic; the rate of inflation, including its impact on vehicle affordability; changes in interest rates and foreign currency exchange rates; our ability to consummate, integrate, and realize returns on acquisitions; with respect to PTS, changes in the financial health of its customers, labor strikes or work stoppages by its employees, a reduction in PTS' asset utilization rates, continued availability from truck manufacturers and suppliers of vehicles and parts for its fleet, changes in values of used trucks which affects PTS' profitability on truck sales and regulatory risks and related compliance costs, our ability to realize returns on our significant capital investments in new and upgraded dealership facilities; our ability to navigate a rapidly changing automotive and truck landscape; our ability to respond to new or enhanced regulations in both our domestic and international markets relating to dealerships and vehicles sales, including those related to the sales process or emissions standards, as well as changes in consumer sentiment relating to commercial truck sales that may hinder our or PTS' ability to maintain, acquire, sell, or operate trucks; the success of our distribution of commercial vehicles, engines, and power systems; natural disasters; recall initiatives or other disruptions that interrupt the supply of vehicles or parts to us; 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, risks, and other uncertainties, which could affect Penske Automotive Group's future performance. The risks and uncertainties discussed above are not exhaustive and additional risk and uncertainties are addressed in Penske Automotive Group's Form 10-K for the year ended December 31, 2023, its Form 10-Q for the quarterly period ended March 31, 2024, and its other filings with the Securities and Exchange Commission. This press release speaks only as of its date, and Penske Automotive Group disclaims any duty to update the information herein.
Inquiries should contact:
Shelley Hulgrave
Anthony Pordon
Executive Vice President and Executive Vice President Investor
Relations
Chief Financial Officer
and Corporate Development
Penske Automotive Group, Inc. Penske Automotive Group, Inc.
248-648-2812
248-648-2540
shulgrave@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,
2024 2023 Change 2024 2023 Change
Revenue $7,696.7 $7,468.5 3.1 % $15,144.5 $14,807.5 2.3 %
Cost of Sales 6,432.6 6,195.5 3.8 % 12,635.2 12,282.2 2.9 %
Gross Profit $1,264.1 $1,273.0 (0.7) % $2,509.3 $2,525.3 (0.6) %
SG&A Expenses 887.5 858.1 3.4 % 1,767.3 1,703.0 3.8 %
Depreciation 38.6 34.1 13.2 % 76.4 68.0 12.4 %
Operating Income $338.0 $380.8 (11.2) % $665.6 $754.3 (11.8) %
Floor Plan Interest Expense (46.6) (30.8) 51.3 % (91.4) (58.7) 55.7 %
Other Interest Expense (19.9) (24.2) (17.8) % (41.2) (45.0) (8.4) %
Equity in Earnings of Affiliates 54.0 74.5 (27.5) % 87.3 156.6 (44.3) %
Income Before Income Taxes $325.5 $400.3 (18.7) % $620.3 $807.2 (23.2) %
Income Taxes (82.6) (97.7) (15.5) % (161.2) (205.0) (21.4) %
Net Income $242.9 $302.6 (19.7) % $459.1 $602.2 (23.8) %
Less: Income Attributable to Non-Controlling Interests 1.7 1.8 (5.6) % 2.7 3.1 (12.9) %
Net Income Attributable to Common Stockholders $241.2 $300.8 (19.8) % $456.4 $599.1 (23.8) %
Amounts Attributable to Common Stockholders:
Net Income $242.9 $302.6 (19.7) % $459.1 $602.2 (23.8) %
Less: Income Attributable to Non-Controlling Interests 1.7 1.8 (5.6) % 2.7 3.1 (12.9) %
Net Income Attributable to Common Stockholders $241.2 $300.8 (19.8) % $456.4 $599.1 (23.8) %
Income Per Share $3.61 $4.41 (18.1) % $6.81 $8.72 (21.9) %
Weighted Average Shares Outstanding 66.9 68.2 (1.9) % 67.0 68.7 (2.5) %
PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Condensed Balance Sheets
(Amounts In Millions)
(Unaudited)
June 30, December 31,
2024 2023
Assets:
Cash and Cash Equivalents $115.1 $96.4
Accounts Receivable, Net 1,040.5 1,114.6
Inventories 4,705.9 4,293.1
Other Current Assets 217.7 175.6
Total Current Assets 6,079.2 5,679.7
Property and Equipment, Net 2,914.3 2,765.2
Operating Lease Right-of-Use Assets 2,466.1 2,405.5
Intangibles 3,288.3 2,983.1
Other Long-Term Assets 1,885.6 1,838.0
Total Assets $16,633.5 $15,671.5
Liabilities and Equity:
Floor Plan Notes Payable $2,578.2 $2,255.6
Floor Plan Notes Payable - Non-Trade 1,562.7 1,515.9
Accounts Payable 943.4 866.9
Accrued Expenses and Other Current Liabilities 916.9 809.8
Current Portion Long-Term Debt 171.7 209.7
Total Current Liabilities 6,172.9 5,657.9
Long-Term Debt 1,594.6 1,419.5
Long-Term Operating Lease Liabilities 2,397.4 2,336.0
Other Long-Term Liabilities 1,482.3 1,502.5
Total Liabilities 11,647.2 10,915.9
Equity 4,986.3 4,755.6
Total Liabilities and Equity $16,633.5 $15,671.5
PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Operations
Selected Data
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2024 2023 2024 2023
Geographic Revenue Mix:
North America 59.8 % 59.7 % 58.2 % 59.0 %
U.K. 31.2 % 32.2 % 32.7 % 32.9 %
Other International 9.0 % 8.1 % 9.1 % 8.1 %
Total 100.0 % 100.0 % 100.0 % 100.0 %
Revenue: (Amounts in Millions)
Retail Automotive $6,615.4 $6,406.0 $13,093.4 $12,705.8
Retail Commercial Truck 892.3 919.2 1,684.1 1,814.8
Commercial Vehicle Distribution and Other 189.0 143.3 367.0 286.9
Total $7,696.7 $7,468.5 $15,144.5 $14,807.5
Gross Profit: (Amounts in Millions)
Retail Automotive $1,075.0 $1,085.9 $2,132.2 $2,148.5
Retail Commercial Truck 144.5 146.8 289.3 293.8
Commercial Vehicle Distribution and Other 44.6 40.3 87.8 83.0
Total $1,264.1 $1,273.0 $2,509.3 $2,525.3
Gross Margin:
Retail Automotive 16.2 % 17.0 % 16.3 % 16.9 %
Retail Commercial Truck 16.2 % 16.0 % 17.2 % 16.2 %
Commercial Vehicle Distribution and Other 23.6 % 28.1 % 23.9 % 28.9 %
Total 16.4 % 17.0 % 16.6 % 17.1 %
Three Months Ended Six Months Ended
June 30, June 30,
2024 2023 2024 2023
Operating Items as a Percentage of Revenue:
Gross Profit 16.4 % 17.0 % 16.6 % 17.1 %
Selling, General and Administrative Expenses 11.5 % 11.5 % 11.7 % 11.5 %
Operating Income 4.4 % 5.1 % 4.4 % 5.1 %
Income Before Income Taxes 4.2 % 5.4 % 4.1 % 5.5 %
Operating Items as a Percentage of Total Gross Profit:
Selling, General and Administrative Expenses 70.2 % 67.4 % 70.4 % 67.4 %
Operating Income 26.7 % 29.9 % 26.5 % 29.9 %
Three Months Ended Six Months Ended
June 30, June 30,
(Amounts in Millions) 2024 2023 2024 2023
EBITDA(1) $384.0 $458.6 $737.9 $920.2
Floor Plan Credits $13.0 $11.2 $23.9 $21.1
Rent Expense $65.3 $62.2 $130.6 $123.9
_______________________
(1) See the following Non-GAAP reconciliation table.
PENSKE AUTOMOTIVE GROUP, INC.
Retail Automotive Operations
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2024 2023 Change 2024 2023 Change
Retail Automotive Units:
New Retail 50,861 49,562 2.6 % 99,528 97,224 2.4 %
Used Retail 65,571 65,386 0.3 % 134,836 133,222 1.2 %
Total Retail 116,432 114,948 1.3 % 234,364 230,446 1.7 %
New Agency 10,221 8,931 14.4 % 19,153 15,864 20.7 %
Total Retail and Agency 126,653 123,879 2.2 % 253,517 246,310 2.9 %
Retail Automotive Revenue: (Amounts in Millions)
New Vehicles $
2,995.8 $
2,820.1 6.2 % $
5,798.4 $
5,541.4 4.6 %
Used Vehicles 2,275.8 2,330.3 (2.3) % 4,612.0 4,627.4 (0.3) %
Finance and Insurance, Net 208.7 214.1 (2.5) % 414.7 420.9 (1.5) %
Service and Parts 752.8 685.2 9.9 % 1,498.9 1,368.2 9.6 %
Fleet and Wholesale 382.3 356.3 7.3 % 769.4 747.9 2.9 %
Total Revenue $
6,615.4 $
6,406.0 3.3 % $
13,093.4 $
12,705.8 3.1 %
Retail Automotive Gross Profit: (Amounts in Millions)
New Vehicles $
291.0 $
326.8 (11.0) % $
563.4 $
640.6 (12.1) %
Used Vehicles 119.5 123.3 (3.1) % 249.4 245.9 1.4 %
Finance and Insurance, Net 208.7 214.1 (2.5) % 414.7 420.9 (1.5) %
Service and Parts 439.6 406.5 8.1 % 872.0 805.4 8.3 %
Fleet and Wholesale 16.2 15.2 6.6 % 32.7 35.7 (8.4) %
Total Gross Profit $
1,075.0 $
1,085.9 (1.0) % $
2,132.2 $
2,148.5 (0.8) %
Retail Automotive Revenue Per Vehicle Retailed:
New Vehicles (excluding agency) $
58,437 $
56,557 3.3 % $
57,820 $
56,687 2.0 %
Used Vehicles 34,707 35,639 (2.6) % 34,204 34,735 (1.5) %
Retail Automotive Gross Profit Per Vehicle Retailed:
New Vehicles (excluding agency) $
5,302 $
6,259 (15.3) % $
5,267 $
6,287 (16.2) %
Used Vehicles 1,822 1,887 (3.4) % 1,849 1,847 0.1 %
Finance and Insurance (excluding agency) 1,766 1,840 (4.0) % 1,742 1,806 (3.5) %
Agency 2,390 2,153 11.0 % 2,381 2,142 11.2 %
Retail Automotive Gross Margin:
New Vehicles 9.7 % 11.6 % (190)bps 9.7 % 11.6 % (190)bps
Used Vehicles 5.3 % 5.3 % -bps 5.4 % 5.3 % +10bps
Service and Parts 58.4 % 59.3 % (90)bps 58.2 % 58.9 % (70)bps
Fleet and Wholesale 4.2 % 4.3 % (10)bps 4.3 % 4.8 % (50)bps
Total Gross Margin 16.2 % 17.0 % (80)bps 16.3 % 16.9 % (60)bps
Retail Automotive Revenue Mix Percentages:
New Vehicles 45.3 % 44.0 % +130bps 44.3 % 43.6 % +70bps
Used Vehicles 34.4 % 36.4 % (200)bps 35.2 % 36.4 % (120)bps
Finance and Insurance, Net 3.2 % 3.3 % (10)bps 3.2 % 3.3 % (10)bps
Service and Parts 11.4 % 10.7 % +70bps 11.4 % 10.8 % +60bps
Fleet and Wholesale 5.7 % 5.6 % +10bps 5.9 % 5.9 % -bps
Total 100.0 % 100.0 % 100.0 % 100.0 %
Retail Automotive Gross Profit Mix Percentages:
New Vehicles 27.1 % 30.1 % (300)bps 26.4 % 29.8 % (340)bps
Used Vehicles 11.1 % 11.4 % (30)bps 11.7 % 11.4 % +30bps
Finance and Insurance, Net 19.4 % 19.7 % (30)bps 19.4 % 19.6 % (20)bps
Service and Parts 40.9 % 37.4 % +350bps 40.9 % 37.5 % +340bps
Fleet and Wholesale 1.5 % 1.4 % +10bps 1.6 % 1.7 % (10)bps
Total 100.0 % 100.0 % 100.0 % 100.0 %
PENSKE AUTOMOTIVE GROUP, INC.
Retail Automotive Operations Same-Store
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2024 2023 Change 2024 2023 Change
Retail Automotive Same-Store Units:
New Retail 48,923 49,507 (1.2) % 95,730 97,073 (1.4) %
Used Retail 62,230 63,233 (1.6) % 127,851 128,583 (0.6) %
Total Retail 111,153 112,740 (1.4) % 223,581 225,656 (0.9) %
New Agency 9,333 8,918 4.7 % 17,861 15,811 13.0 %
Total Retail and Agency 120,486 121,658 (1.0) % 241,442 241,467 - %
Retail Automotive Same-Store Revenue: (Amounts in Millions)
New Vehicles $
2,871.6 $
2,818.7 1.9 % $
5,560.3 $
5,537.7 0.4 %
Used Vehicles 2,156.6 2,284.2 (5.6) % 4,373.4 4,530.0 (3.5) %
Finance and Insurance, Net 202.7 211.9 (4.3) % 403.2 416.2 (3.1) %
Service and Parts 717.3 683.0 5.0 % 1,430.9 1,363.3 5.0 %
Fleet and Wholesale 366.9 351.3 4.4 % 740.5 734.7 0.8 %
Total Revenue $
6,315.1 $
6,349.1 (0.5) % $
12,508.3 $
12,581.9 (0.6) %
Retail Automotive Same-Store Gross Profit: (Amounts in Millions)
New Vehicles $
277.5 $
326.7 (15.1) % $
538.5 $
640.4 (15.9) %
Used Vehicles 113.6 121.8 (6.7) % 235.0 243.1 (3.3) %
Finance and Insurance, Net 202.7 211.9 (4.3) % 403.2 416.2 (3.1) %
Service and Parts 422.6 405.1 4.3 % 839.9 802.1 4.7 %
Fleet and Wholesale 15.6 15.2 2.6 % 32.0 35.5 (9.9) %
Total Gross Profit $
1,032.0 $
1,080.7 (4.5) % $
2,048.6 $
2,137.3 (4.2) %
Retail Automotive Same-Store Revenue Per Vehicle Retailed:
New Vehicles (excluding agency) $
58,259 $
56,592 2.9 % $
57,651 $
56,737 1.6 %
Used Vehicles 34,655 36,123 (4.1) % 34,207 35,230 (2.9) %
Retail Automotive Same-Store Gross Profit Per Vehicle Retailed:
New Vehicles (excluding agency) $
5,283 $
6,265 (15.7) % $
5,240 $
6,295 (16.8) %
Used Vehicles 1,825 1,926 (5.2) % 1,838 1,891 (2.8) %
Finance and Insurance (excluding agency) 1,810 1,870 (3.2) % 1,794 1,840 (2.5) %
Agency 2,198 1,975 11.3 % 2,187 1,921 13.8 %
Retail Automotive Same-Store Gross Margin:
New Vehicles 9.7 % 11.6 % (190)bps 9.7 % 11.6 % (190)bps
Used Vehicles 5.3 % 5.3 % -bps 5.4 % 5.4 % -bps
Service and Parts 58.9 % 59.3 % (40)bps 58.7 % 58.8 % (10)bps
Fleet and Wholesale 4.3 % 4.3 % -bps 4.3 % 4.8 % (50)bps
Total Gross Margin 16.3 % 17.0 % (70)bps 16.4 % 17.0 % (60)bps
Retail Automotive Same-Store Revenue Mix Percentages:
New Vehicles 45.5 % 44.4 % +110bps 44.5 % 44.0 % +50bps
Used Vehicles 34.1 % 36.0 % (190)bps 35.0 % 36.0 % (100)bps
Finance and Insurance, Net 3.2 % 3.3 % (10)bps 3.2 % 3.3 % (10)bps
Service and Parts 11.4 % 10.8 % +60bps 11.4 % 10.8 % +60bps
Fleet and Wholesale 5.8 % 5.5 % +30bps 5.9 % 5.9 % -bps
Total 100.0 % 100.0 % 100.0 % 100.0 %
Retail Automotive Same-Store Gross Profit Mix Percentages:
New Vehicles 26.9 % 30.2 % (330)bps 26.3 % 30.0 % (370)bps
Used Vehicles 11.0 % 11.3 % (30)bps 11.5 % 11.4 % +10bps
Finance and Insurance, Net 19.6 % 19.6 % -bps 19.7 % 19.5 % +20bps
Service and Parts 40.9 % 37.5 % +340bps 41.0 % 37.5 % +350bps
Fleet and Wholesale 1.6 % 1.4 % +20bps 1.5 % 1.6 % (10)bps
Total 100.0 % 100.0 % 100.0 % 100.0 %
PENSKE AUTOMOTIVE GROUP, INC.
Retail Commercial Truck Operations
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2024 2023 Change 2024 2023 Change
Retail Commercial Truck Units:
New Retail 4,483 4,539 (1.2) % 7,974 9,056 (11.9) %
Used Retail 765 704 8.7 % 1,814 1,359 33.5 %
Total 5,248 5,243 0.1 % 9,788 10,415 (6.0) %
Retail Commercial Truck Revenue: (Amounts in Millions)
New Vehicles $
615.4 $
616.4 (0.2) % $
1,109.6 $
1,216.6 (8.8) %
Used Vehicles 48.7 52.4 (7.1) % 111.1 101.9 9.0 %
Finance and Insurance, Net 4.2 5.0 (16.0) % 9.5 10.0 (5.0) %
Service and Parts 219.2 232.1 (5.6) % 442.8 460.1 (3.8) %
Wholesale and Other 4.8 13.3 (63.9) % 11.1 26.2 (57.6) %
Total Revenue $
892.3 $
919.2 (2.9) % $
1,684.1 $
1,814.8 (7.2) %
Retail Commercial Truck Gross Profit: (Amounts in Millions)
New Vehicles $
39.3 $
37.5 4.8 % $
73.9 $
70.0 5.6 %
Used Vehicles 3.4 4.0 (15.0) % 6.7 9.4 (28.7) %
Finance and Insurance, Net 4.2 5.0 (16.0) % 9.5 10.0 (5.0) %
Service and Parts 94.1 95.4 (1.4) % 192.2 193.7 (0.8) %
Wholesale and Other 3.5 4.9 (28.6) % 7.0 10.7 (34.6) %
Total Gross Profit $
144.5 $
146.8 (1.6) % $
289.3 $
293.8 (1.5) %
Retail Commercial Truck Revenue Per Vehicle Retailed:
New Vehicles $
137,269 $
135,798 1.1 % $
139,150 $
134,345 3.6 %
Used Vehicles 63,665 74,421 (14.5) % 61,266 75,009 (18.3) %
Retail Commercial Truck Gross Profit Per Vehicle Retailed:
New Vehicles $
8,765 $
8,254 6.2 % $
9,266 $
7,723 20.0 %
Used Vehicles 4,502 5,722 (21.3) % 3,742 6,914 (45.9) %
Finance and Insurance 798 960 (16.9) % 969 961 0.8 %
Retail Commercial Truck Gross Margin:
New Vehicles 6.4 % 6.1 % +30bps 6.7 % 5.8 % +90bps
Used Vehicles 7.0 % 7.6 % (60)bps 6.0 % 9.2 % (320)bps
Service and Parts 42.9 % 41.1 % +180bps 43.4 % 42.1 % +130bps
Wholesale and Other 72.9 % 36.8 % +3,610bps 63.1 % 40.8 % +2,230bps
Total Gross Margin 16.2 % 16.0 % +20bps 17.2 % 16.2 % +100bps
Retail Commercial Truck Revenue Mix Percentages:
New Vehicles 69.0 % 67.1 % +190bps 65.9 % 67.0 % (110)bps
Used Vehicles 5.5 % 5.7 % (20)bps 6.6 % 5.6 % +100bps
Finance and Insurance, Net 0.5 % 0.5 % -bps 0.6 % 0.6 % -bps
Service and Parts 24.6 % 25.3 % (70)bps 26.3 % 25.4 % +90bps
Wholesale and Other 0.4 % 1.4 % (100)bps 0.6 % 1.4 % (80)bps
Total 100.0 % 100.0 % 100.0 % 100.0 %
Retail Commercial Truck Gross Profit Mix Percentages:
New Vehicles 27.2 % 25.5 % +170bps 25.5 % 23.8 % +170bps
Used Vehicles 2.4 % 2.7 % (30)bps 2.3 % 3.2 % (90)bps
Finance and Insurance, Net 2.9 % 3.4 % (50)bps 3.3 % 3.4 % (10)bps
Service and Parts 65.1 % 65.0 % +10bps 66.4 % 65.9 % +50bps
Wholesale and Other 2.4 % 3.4 % (100)bps 2.5 % 3.7 % (120)bps
Total 100.0 % 100.0 % 100.0 % 100.0 %
PENSKE AUTOMOTIVE GROUP, INC.
Retail Commercial Truck Operations Same-Store
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2024 2023 Change 2024 2023 Change
Retail Commercial Truck Same-Store Units:
New Retail 4,275 4,510 (5.2) % 7,637 9,027 (15.4) %
Used Retail 739 701 5.4 % 1,763 1,356 30.0 %
Total 5,014 5,211 (3.8) % 9,400 10,383 (9.5) %
Retail Commercial Truck Same-Store Revenue: (Amounts in Millions)
New Vehicles $
585.1 $
611.7 (4.3) % $
1,059.4 $
1,212.0 (12.6) %
Used Vehicles 46.9 52.2 (10.2) % 108.0 101.8 6.1 %
Finance and Insurance, Net 3.9 5.0 (22.0) % 8.9 10.0 (11.0) %
Service and Parts 207.6 229.3 (9.5) % 420.8 457.2 (8.0) %
Wholesale and Other 4.3 13.3 (67.7) % 10.4 26.0 (60.0) %
Total Revenue $
847.8 $
911.5 (7.0) % $
1,607.5 $
1,807.0 (11.0) %
Retail Commercial Truck Same-Store Gross Profit: (Amounts in Millions)
New Vehicles $
37.1 $
37.0 0.3 % $
69.6 $
69.5 0.1 %
Used Vehicles 3.8 4.0 (5.0) % 7.8 9.4 (17.0) %
Finance and Insurance, Net 3.9 5.0 (22.0) % 8.9 10.0 (11.0) %
Service and Parts 89.5 94.3 (5.1) % 183.4 192.5 (4.7) %
Wholesale and Other 3.3 4.7 (29.8) % 6.2 10.4 (40.4) %
Total Gross Profit $
137.6 $
145.0 (5.1) % $
275.9 $
291.8 (5.4) %
Retail Commercial Truck Same-Store Revenue Per Vehicle Retailed:
New Vehicles $
136,857 $
135,637 0.9 % $
138,722 $
134,259 3.3 %
Used Vehicles 63,431 74,485 (14.8) % 61,255 75,043 (18.4) %
Retail Commercial Truck Same-Store Gross Profit Per Vehicle Retailed:
New Vehicles $
8,684 $
8,211 5.8 % $
9,110 $
7,700 18.3 %
Used Vehicles 5,140 5,733 (10.3) % 4,410 6,922 (36.3) %
Finance and Insurance 784 958 (18.2) % 947 960 (1.4) %
Retail Commercial Truck Same-Store Gross Margin:
New Vehicles 6.3 % 6.0 % +30bps 6.6 % 5.7 % +90bps
Used Vehicles 8.1 % 7.7 % +40bps 7.2 % 9.2 % (200)bps
Service and Parts 43.1 % 41.1 % +200bps 43.6 % 42.1 % +150bps
Wholesale and Other 76.7 % 35.3 % +4,140bps 59.6 % 40.0 % +1,960bps
Total Gross Margin 16.2 % 15.9 % +30bps 17.2 % 16.1 % +110bps
Retail Commercial Truck Same-Store Revenue Mix Percentages:
New Vehicles 69.0 % 67.1 % +190bps 65.9 % 67.1 % (120)bps
Used Vehicles 5.5 % 5.7 % (20)bps 6.7 % 5.6 % +110bps
Finance and Insurance, Net 0.5 % 0.5 % -bps 0.6 % 0.6 % -bps
Service and Parts 24.5 % 25.2 % (70)bps 26.2 % 25.3 % +90bps
Wholesale and Other 0.5 % 1.5 % (100)bps 0.6 % 1.4 % (80)bps
Total 100.0 % 100.0 % 100.0 % 100.0 %
Retail Commercial Truck Same-Store Gross Profit Mix Percentages:
New Vehicles 27.0 % 25.5 % +150bps 25.2 % 23.8 % +140bps
Used Vehicles 2.8 % 2.8 % -bps 2.8 % 3.2 % (40)bps
Finance and Insurance, Net 2.8 % 3.4 % (60)bps 3.2 % 3.4 % (20)bps
Service and Parts 65.0 % 65.0 % -bps 66.5 % 66.0 % +50bps
Wholesale and Other 2.4 % 3.3 % (90)bps 2.3 % 3.6 % (130)bps
Total 100.0 % 100.0 % 100.0 % 100.0 %
PENSKE AUTOMOTIVE GROUP, INC.
Supplemental Data
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2024 2023 2024 2023
Retail Automotive Revenue Mix:
Premium:
BMW / MINI 26 % 25 % 26 % 25 %
Audi 10 % 11 % 10 % 11 %
Mercedes-Benz 9 % 9 % 9 % 9 %
Land Rover / Jaguar 8 % 7 % 8 % 8 %
Porsche 9 % 8 % 8 % 8 %
Ferrari / Maserati 3 % 3 % 3 % 3 %
Lexus 3 % 3 % 3 % 3 %
Acura 1 % 1 % 1 % 1 %
Bentley 1 % 1 % 1 % 1 %
Others 2 % 3 % 3 % 2 %
Total Premium 72 % 71 % 72 % 71 %
Volume Non-U.S.:
Toyota 11 % 10 % 11 % 10 %
Honda 6 % 6 % 5 % 6 %
Volkswagen 2 % 2 % 2 % 2 %
Hyundai 1 % 1 % 1 % 1 %
Others 1 % 2 % 2 % 1 %
Total Volume Non-U.S. 21 % 21 % 21 % 20 %
U.S.:
General Motors / Stellantis / Ford 1 % 1 % 1 % 1 %
Used Vehicle Centers 6 % 7 % 6 % 8 %
Total 100 % 100 % 100 % 100 %
Three Months Ended Six Months Ended
June 30, June 30,
Capital Expenditures / Stock Repurchases: 2024 2023 2024 2023
(Amounts in Millions)
Capital expenditures
$ 99.2
$ 83.1
$ 201.7
$ 185.5
Cash paid for acquisitions, net of cash acquired
$ 197.2
$ 80.5
$ 440.8
$ 80.5
Stock repurchases:
Aggregate purchase price
$ 43.5
$ 240.2
$ 76.4
$ 350.4
Shares repurchased 0.3 1.7 0.5 2.6
Balance Sheet and Other Highlights: June 30, 2024 December 31, 2023
(Amounts in Millions)
Cash and Cash Equivalents $
115.1 $
96.4
Inventories $
4,705.9 $
4,293.1
Total Floor Plan Notes Payable $
4,140.9 $
3,771.5
Total Long-Term Debt $
1,766.3 $
1,629.2
Equity $
4,986.3 $
4,755.6
Debt to Total Capitalization Ratio 26.2 % 25.5 %
Leverage Ratio (1) 1.2x 1.0x
New vehicle days' supply 52 days 39 days
Used vehicle days' supply 40 days 48 days
__________________________
(1) See the following Non-GAAP reconciliation table
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, 2024 and 2023:
Three Months Ended
June 30, 2024 vs. 2023
(Amounts in Millions) 2024 2023 Change % Change
Net Income $
242.9 $
302.6 $
(59.7) (19.7) %
Add: Depreciation 38.6 34.1 4.5 13.2 %
Other Interest Expense 19.9 24.2 (4.3) (17.8) %
Income Taxes 82.6 97.7 (15.1) (15.5) %
EBITDA $
384.0 $
458.6 $
(74.6) (16.3) %
Six Months Ended
June 30, 2024 vs. 2023
(Amounts in Millions) 2024 2023 Change % Change
Net Income $
459.1 $
602.2 $
(143.1) (23.8) %
Add: Depreciation 76.4 68.0 8.4 12.4 %
Other Interest Expense 41.2 45.0 (3.8) (8.4) %
Income Taxes 161.2 205.0 (43.8) (21.4) %
EBITDA $
737.9 $
920.2 $
(182.3) (19.8) %
The following table reconciles the leverage ratio as of June 30, 2024, and December 31, 2023:
Six Six Trailing Twelve Twelve
Months Ended Months Ended Months Ended Months Ended
(Amounts in Millions) December 31, 2023 June 30, 2024 June 30, 2024 December 31, 2023
Net Income $456.4 $459.1 $915.5 $1,058.6
Add: Depreciation 73.0 76.4 149.4 141.0
Other Interest Expense 47.6 41.2 88.8 92.6
Income Taxes 155.9 161.2 317.1 360.9
EBITDA $732.9 $737.9 $1,470.8 $1,653.1
Add: Impairment Charges (1) 40.7 40.7 40.7
Adjusted EBITDA $773.6 $737.9 $1,511.5 $1,693.8
Total Non-Vehicle Long-Term Debt $1,766.3 $1,629.2
Leverage Ratio 1.2x 1.0x
__________________________
(1) Impairment charges relate to our Used Vehicle Dealerships International reporting unit
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SOURCE Penske Automotive Group, Inc.
