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Section 1: 8-K (8-K)

PAG 8-K Q1 2018 Earnings

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

 

 

Date of Report (Date of Earliest Event Reported):

April 25, 2018

 

Penske Automotive Group, Inc.

 


(Exact name of registrant as specified in its charter)

 

 

 

 

 

 

Delaware

    

1-12297

    

22-3086739

(State or other jurisdiction

 

(Commission

 

(I.R.S. Employer

of incorporation)

 

File Number)

 

Identification No.)

 

 

 

 

 

2555 Telegraph Road, Bloomfield Hills,
Michigan

 

 

 

48302

(Address of principal executive offices)

 

 

 

(Zip Code)

 

 

 

 

 

Registrant’s telephone number, including area code:

 

248-648-2500

 

 

 

 

 

Not Applicable

 

 

Former name or former address, if changed since last report

 

 

 

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 


 

 

Item 2.02 Results of Operations and Financial Condition.

 

On April 25, 2018, we issued a press release announcing our first quarter 2018 financial results and other information. A copy of the press release is furnished as Exhibit 99.1.

 

Item 7.01 Regulation FD Disclosure.

 

The following information is furnished pursuant to Item 7.01 “Regulation FD Disclosure.”

 

On April 25, 2018, we issued a press release announcing our first quarter 2018 financial results and other information. A copy of the press release is furnished as Exhibit 99.1.

 

Item 8.01 Other Events.

 

Investors and others should note that we announce material financial information using our company website (www.penskeautomotive.com), our investor relations website (investors.penskeautomotive.com), SEC filings, press releases, public conference calls and webcasts. Information about Penske Automotive, its business, and its results of operations may also be announced by posts on the following social media channels:

 

·

Penske Automotive’s Twitter feed (www.twitter.com/penskecarscorp)

·

Penske Automotive’s Facebook page (www.facebook.com/penskecars)

·

Penske Automotive’s Social website (www.penskesocial.com)

 

The information that we post on these social media channels could be deemed to be material information. As a result, we encourage investors, the media, and others interested in Penske Automotive to review the information that we post on these social media channels. These channels may be updated from time to time on Penske Automotive’s investor relations website.

 

Item 9.01 Financial Statements and Exhibits.

 

Exhibit 99.1     Press Release.

 


 

 

Exhibit Index

 

 

 

 

Exhibit No.

 

Description

99.1

 

Press Release.

 

 

 

 

 


 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

 

 

    

Penske Automotive Group, Inc.

 

 

 

April 25, 2018

 

By: 

/s/ Shane M. Spradlin

 

 

 

Name: Shane M. Spradlin

 

 

 

Title: Executive Vice President

 

 


(Back To Top)

Section 2: EX-99.1 (EX-99.1)

PAG Exhibit 991

 

 

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Penske Automotive Group, Inc.
2555 Telegraph Road
Bloomfield Hills, MI 48302-0954

 

 

FOR IMMEDIATE RELEASE

               Picture 4    Picture 8    Picture 1    Picture 3    C:\Users\014dbryan\Desktop\IG_Glyph_Fill.jpg

 

 

PENSKE AUTOMOTIVE REPORTS RECORD FIRST QUARTER RESULTS

 

Revenue Increases 13.1% to $5.7 Billion

 

Income From Continuing Operations Increases 29.8% to $108.0 million

 

Earnings Per Share From Continuing Operations Increases 29.9% to $1.26 

 

BLOOMFIELD HILLS, MI, April 25, 2018 –  Penske Automotive Group, Inc. (NYSE:PAG), an international transportation services company, today announced record first quarter results. For the three months ended March 31, 2018, income from continuing operations attributable to common shareholders increased 29.8% to $108.0 million, and related earnings per share increased 29.9% to $1.26 when compared to the same period last year. The results for the three months ended March 31, 2018 include a net benefit totaling $1.0 million after tax, or $0.01 per share, consisting of a $6.4 million net gain related to several retail automotive dealership actions including the sale of five locations and the termination of several franchises, partially offset by valuation adjustments on certain properties totaling $5.4 million.

On January 1, 2018, the company adopted ASC 606 for revenue recognition. The net impact of adopting ASC 606 in the first quarter of 2018 was an increase to net income of $0.4 million. Additionally, as a result of tax reform enacted in 2017, the company’s effective tax rate in the first quarter of 2018 was 25.4% compared to 33.0% in the first quarter of 2017.

Total automotive retail unit volume increased 6.4% and total revenue increased 13.1% to $5.7 billion. Excluding foreign exchange, total revenue increased 7.3%. Foreign exchange positively impacted earnings per share by $0.06 during the first quarter.

“I’m pleased to report another quarter of record results,” said Penske Automotive Group Chairman Roger S. Penske. “The record results were driven by outstanding performance across each area of our business, demonstrating the strength of our diversified transportation services model.  A  6.4% increase in retail automotive unit sales, a 37.7% same-store retail revenue increase in the company’s North American retail commercial truck business, the growth of the stand-alone used vehicle supercenter operations, and

 

 

 

 

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the investment in Penske Truck Leasing contributed to the record first quarter. Furthermore, I am particularly pleased to report a 100 basis point improvement in selling, general and administrative expenses as a percent of gross profit and gross profit flow-through of nearly 32%, demonstrating the strong expense leverage our model is capable of producing.”

Automotive Retail Highlights of the First Quarter

 

·

Retail Unit Sales +6.4% to  132,490

 

Ø

New Retail Units -4.7%

Ø

Used Retail Units +17.6%

 

·

Same-Store Retail Unit Sales +0.4%  to  111,240

 

Ø

New Retail Units -1.6%

Ø

Used Retail Units +2.5%

 

·

Same-Store Retail Revenue +8.5%;  Excluding Foreign Exchange +2.7%

 

Ø

New +6.7%;  Used +11.4%;  Finance & Insurance +10.4%;  Service and Parts +8.0%

 

·

Same-Store Average Gross Profit Per Unit

 

Ø

New $3,039,  +$110/unit; Gross Margin 7.4%,  -30 basis points

 

§

Excluding Foreign Exchange $2,864, -$65/unit

 

Ø

Used $1,607,  +$57/unit; Gross Margin 5.5%,  -30 basis points

 

§

Excluding Foreign Exchange $1,515, -$35/unit

 

Ø

Finance & Insurance $1,238,  +$113/unit

 

§

Excluding Foreign Exchange $1,177, +$52/unit

 

·

Same-Store Variable Gross Profit Per Unit $3,590,  +$183/unit

 

Ø

Excluding Foreign Exchange $3,394,  -$13/unit

 

Retail Commercial Truck Operations

For the three months ended March 31, 2018,  the company’s retail commercial truck operations retailed  2,105 units, generated $292.4 million of revenue, and $46.6 million of gross profit.  On a same-store basis, total units retailed increased 39.7% and retail revenue increased 37.7% for the three months ended March 31, 2018, including a 15.1% increase in service and parts revenue. Fixed cost absorption improved to 120.7% from 115.5% for the same period last year.

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 2017, the company increased its ownership

 

 

 

 

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interests in PTL by 5.5%, bringing our total ownership interest in PTL to 28.9%. The company accounts for its ownership interest in PTL using the equity method of accounting. For the three months ended March 31, 2018, PTL generated $1.5 billion in operating revenue and net income of $55.0 million. The company recorded $16.0 million in earnings from this investment, representing an increase of 34.5%, during the three months ended March 31, 2018.

Dividend and Share Repurchases

On January 30, 2018, the company announced that its Board of Directors increased the dividend to its common stock shareholders to $0.34 per share, the twenty-seventh consecutive increase in the quarterly dividend.

During the three months ended March 31, 2018, the company repurchased 1,133,016 shares for $50.0 million, or an average of $44.13 per share. As of March 31, 2018, the Company had remaining share repurchase authorization of approximately $150.0 million.

Conference Call

Penske Automotive Group will host a conference call discussing financial results relating to the first quarter of 2018 on Wednesday,  April 25, 2018, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (800) 230-1074 [International, please dial (612) 234-9959]. 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 first quarter 2018 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 26,000 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  

 

 

 

 

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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 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 such as the recent hurricanes, 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, 2017, 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 vehiclehttp://www.penskecars.com

Engage Penske Automotivehttp://www.penskesocial.com

Like Penske Automotive on Facebookhttps://facebook.com/penskecars

Follow Penske Automotive on Twitterhttps://twitter.com/penskecars

Visit Penske Automotive on YouTubehttp://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

 

# # #

 

 

 

 

 

 

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PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Statements of Income

(Amounts In Millions, Except Per Share Data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

March 31,

 

2018 vs. 2017

 

 

2018

 

2017

 

Change

 

% Change

Revenue

 

$

5,746.9

 

$

5,081.1

 

$

665.8

 

13.1

%  

Cost of Sales

 

 

4,882.5

 

 

4,306.8

 

 

575.7

 

13.4

%  

Gross Profit

 

$

864.4

 

$

774.3

 

$

90.1

 

11.6

%  

SG&A Expenses

 

 

663.1

 

 

601.7

 

 

61.4

 

10.2

%  

Depreciation

 

 

25.6

 

 

22.4

 

 

3.2

 

14.3

%  

Operating Income

 

$

175.7

 

$

150.2

 

$

25.5

 

17.0

%  

Floor Plan Interest Expense

 

 

(18.9)

 

 

(13.7)

 

 

5.2

 

38.0

%  

Other Interest Expense

 

 

(29.8)

 

 

(25.0)

 

 

4.8

 

19.2

%  

Equity in Earnings of Affiliates

 

 

17.3

 

 

13.2

 

 

4.1

 

31.1

%  

Income from Continuing Operations Before Income Taxes

 

$

144.3

 

$

124.7

 

$

19.6

 

15.7

%  

Income Taxes

 

 

(36.6)

 

 

(41.1)

 

 

(4.5)

 

(10.9)

%  

Income from Continuing Operations

 

$

107.7

 

$

83.6

 

$

24.1

 

28.8

%  

Income (Loss) from Discontinued Operations, net of tax

 

 

0.1

 

 

(0.6)

 

 

(0.7)

 

nm

 

Net Income

 

$

107.8

 

$

83.0

 

$

24.8

 

29.9

%  

Less: (Loss) Income Attributable to Non-Controlling Interests

 

 

(0.3)

 

 

0.4

 

 

(0.7)

 

nm

 

Net Income Attributable to Common Shareholders

 

$

108.1

 

$

82.6

 

$

25.5

 

30.9

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts Attributable to Common Shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

Reported Income from Continuing Operations

 

$

107.7

 

$

83.6

 

$

24.1

 

28.8

%  

Less: (Loss) Income Attributable to Non-Controlling Interests

 

 

(0.3)

 

 

0.4

 

 

(0.7)

 

nm

 

Income from Continuing Operations, net of tax

 

$

108.0

 

$

83.2

 

$

24.8

 

29.8

%  

Income (Loss) from Discontinued Operations, net of tax

 

 

0.1

 

 

(0.6)

 

 

(0.7)

 

nm

 

Net Income Attributable to Common Shareholders

 

$

108.1

 

$

82.6

 

$

25.5

 

30.9

%  

Income from Continuing Operations Per Share

 

$

1.26

 

$

0.97

 

$

0.29

 

29.9

%  

Income Per Share

 

$

1.26

 

$

0.96

 

$

0.30

 

31.3

%  

Weighted Average Shares Outstanding

 

 

86.0

 

 

85.6

 

 

0.4

 

0.5

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

nm – not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Balance Sheets

(Amounts In Millions)

(Unaudited)

 

 

 

 

 

 

 

 

    

March 31,

    

December 31,

 

 

2018

 

2017

Assets:

 

 

 

 

 

 

Cash and Cash Equivalents

 

$

52.8

 

$

45.7

Accounts Receivable, Net

 

 

1,035.4

 

 

954.9

Inventories

 

 

3,972.2

 

 

3,944.1

Other Current Assets

 

 

105.0

 

 

81.8

Total Current Assets

 

 

5,165.4

 

 

5,026.5

Property and Equipment, Net

 

 

2,173.5

 

 

2,108.6

Intangibles

 

 

2,213.2

 

 

2,134.5

Other Long-Term Assets

 

 

1,290.9

 

 

1,271.0

Total Assets

 

$

10,843.0

 

$

10,540.6

 

 

 

 

 

 

 

Liabilities and Equity:

 

 

 

 

 

 

Floor Plan Notes Payable

 

$

2,355.6

 

$

2,343.2

Floor Plan Notes Payable – Non-Trade

 

 

1,413.8

 

 

1,418.6

Accounts Payable

 

 

720.5

 

 

641.6

Accrued Expenses

 

 

563.9

 

 

523.5

Current Portion Long-Term Debt

 

 

84.3

 

 

72.8

Liabilities Held for Sale

 

 

0.7

 

 

0.7

Total Current Liabilities

 

 

5,138.8

 

 

5,000.4

Long-Term Debt

 

 

2,136.9

 

 

2,090.4

Other Long-Term Liabilities

 

 

1,072.9

 

 

1,021.8

Total Liabilities

 

 

8,348.6

 

 

8,112.6

Equity

 

 

2,494.4

 

 

2,428.0

Total Liabilities and Equity

 

$

10,843.0

 

$

10,540.6

 

 

 

 

 

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PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Operations

Selected Data

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

    

2018

    

2017

    

Geographic Revenue Mix:

 

 

 

 

 

 

 

North America

 

 

53.0

%  

 

56.5

%  

U.K.

 

 

38.2

%  

 

35.9

%  

Other International

 

 

8.8

%  

 

7.6

%  

Total

 

 

100.0

%  

 

100.0

%  

 

 

 

 

 

 

 

 

Revenue: (Amounts in Millions)

 

 

 

 

 

 

 

Retail Automotive

 

$

5,296.0

 

$

4,756.4

 

Retail Commercial Trucks

 

 

292.4

 

 

211.7

 

Commercial Vehicles Australia/Power Systems and Other

 

 

158.5

 

 

113.0

 

Total

 

$

5,746.9

 

$

5,081.1

 

 

 

 

 

 

 

 

 

Gross Profit: (Amounts in Millions)

 

 

 

 

 

 

 

Retail Automotive

 

$

778.3

 

$

708.3

 

Retail Commercial Trucks

 

 

46.6

 

 

36.4

 

Commercial Vehicles Australia/Power Systems and Other

 

 

39.5

 

 

29.6

 

Total

 

$

864.4

 

$

774.3

 

 

 

 

 

 

 

 

 

Gross Margin:

 

 

 

 

 

 

 

Retail Automotive

 

 

14.7

%  

 

14.9

%  

Retail Commercial Trucks

 

 

15.9

%  

 

17.2

%

Commercial Vehicles Australia/Power Systems and Other

 

 

24.9

%  

 

26.2

%  

Total

 

 

15.0

%  

 

15.2

%  

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31,

 

    

 

    

 

    

 

 

2018

 

2017

 

Operating Items as a Percentage of Revenue:

 

 

 

 

 

Gross Profit

 

15.0

%  

15.2

%  

Selling, General and Administrative Expenses

 

11.5

%  

11.8

%  

Operating Income

 

3.1

%  

3.0

%  

Income from Continuing Operations Before Income Taxes

 

2.5

%  

2.5

%  

 

 

 

 

 

 

Operating Items as a Percentage of Total Gross Profit:

 

 

 

 

 

Selling, General and Administrative Expenses

 

76.7

%  

77.7

%  

Operating Income

 

20.3

%  

19.4

%  

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31,

 

    

 

 

    

 

 

(Amounts in Millions)

 

2018

 

2017

 

 

 

 

 

 

 

EBITDA*

 

$

199.7

 

$

172.1

Floorplan Credits

 

$

8.5

 

$

8.3

Rent Expense

 

$

57.9

 

$

53.4

Capital Expenditures

 

$

64.7

 

$

36.9

Stock Repurchases

 

$

50.0

 

$

2.7


* See the following Non-GAAP reconciliation table.

 

 

 

 

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PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

Selected Data

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

March 31,

    

2018 vs. 2017

 

    

2018

    

2017

 

Change

    

% Change

Retail Automotive Units:

 

 

 

 

 

 

 

 

 

 

 

 

New Retail

 

 

59,262

 

 

62,188

 

 

(2,926)

 

(4.7)

%  

Used Retail

 

 

73,228

 

 

62,284

 

 

10,944

 

17.6

%  

Total

 

 

132,490

 

 

124,472

 

 

8,018

 

6.4

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Revenue: (Amounts in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

2,446.8

 

$

2,307.4

 

$

139.4

 

6.0

%  

Used Vehicles

 

 

1,866.8

 

 

1,541.0

 

 

325.8

 

21.1

%  

Finance and Insurance, Net

 

 

160.8

 

 

137.4

 

 

23.4

 

17.0

%  

Service and Parts

 

 

543.5

 

 

498.9

 

 

44.6

 

8.9

%  

Fleet and Wholesale

 

 

278.1

 

 

271.7

 

 

6.4

 

2.4

%  

Total Revenue

 

$

5,296.0

 

$

4,756.4

 

$

539.6

 

11.3

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Gross Profit: (Amounts in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

183.2

 

$

177.1

 

$

6.1

 

3.4

%  

Used Vehicles

 

 

109.7

 

 

94.1

 

 

15.6

 

16.6

%  

Finance and Insurance, Net

 

 

160.8

 

 

137.4

 

 

23.4

 

17.0

%  

Service and Parts

 

 

318.1

 

 

293.7

 

 

24.4

 

8.3

%  

Fleet and Wholesale

 

 

6.5

 

 

6.0

 

 

0.5

 

8.3

%  

Total Gross Profit

 

$

778.3

 

$

708.3

 

$

70.0

 

9.9

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Revenue Per Vehicle Retailed:

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

41,288

 

$

37,103

 

$

4,185

 

11.3

%  

Used Vehicles

 

 

25,493

 

 

24,742

 

 

751

 

3.0

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Gross Profit Per Vehicle Retailed:

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

3,091

 

$

2,848

 

$

243

 

8.5

%  

Used Vehicles

 

 

1,498

 

 

1,512

 

 

(14)

 

(0.9)

%  

Finance and Insurance

 

 

1,213

 

 

1,104

 

 

109

 

9.9

%  

Total Variable Gross Profit Per Vehicle (1)

 

 

3,424

 

 

3,283

 

 

141

 

4.3

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Gross Margin:

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

 

7.5

%  

 

7.7

%  

 

(0.2)

%

(2.6)

%

Used Vehicles

 

 

5.9

%  

 

6.1

%  

 

(0.2)

%

(3.3)

%

Service and Parts

 

 

58.5

%  

 

58.9

%  

 

(0.4)

%

(0.7)

%

Fleet and Wholesale

 

 

2.3

%  

 

2.2

%  

 

0.1

%

4.5

%

Total Gross Margin

 

 

14.7

%  

 

14.9

%  

 

(0.2)

%

(1.3)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Revenue Mix Percentages:

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

 

46.2

%  

 

48.5

%  

 

(2.3)

%

(4.7)

%

Used Vehicles

 

 

35.2

%  

 

32.4

%  

 

2.8

%

8.6

%

Finance and Insurance, Net

 

 

3.0

%  

 

2.9

%  

 

0.1

%

3.4

%

Service and Parts

 

 

10.3

%  

 

10.5

%  

 

(0.2)

%

(1.9)

%

Fleet and Wholesale

 

 

5.3

%  

 

5.7

%  

 

(0.4)

%

(7.0)

%

Total

 

 

100.0

%  

 

100.0

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Gross Profit Mix Percentages:

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

 

23.5

%  

 

25.0

%  

 

(1.5)

%

(6.0)

%

Used Vehicles

 

 

14.1

%  

 

13.3

%  

 

0.8

%

6.0

%

Finance and Insurance, Net

 

 

20.7

%  

 

19.4

%  

 

1.3

%

6.7

%

Service and Parts

 

 

40.9

%  

 

41.5

%  

 

(0.6)

%

(1.4)

%

Fleet and Wholesale

 

 

0.8

%  

 

0.8

%  

 

 —

%

 —

%

Total

 

 

100.0

%  

 

100.0

%  

 

 

 

 

 


(1)

Calculated by dividing the sum of new vehicle, used vehicle, and finance and insurance gross profit by total retail automotive unit sales.

 

 

 

 

 

8

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PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

Selected Data

(Unaudited)

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

    

2018

    

2017

    

Retail Automotive Revenue Mix:

 

 

 

 

 

Premium:

 

 

 

 

 

BMW / MINI

 

22

%  

23

%  

Audi

 

14

%  

14

%  

Mercedes-Benz

 

10

%  

10

%  

Land Rover / Jaguar

 

 9

%  

 8

%  

Porsche

 

 6

%  

 6

%  

Ferrari / Maserati

 

 3

%  

 3

%  

Lexus

 

 2

%  

 3

%  

Acura

 

 1

%  

 1

%  

Bentley

 

 1

%  

 1

%  

Others

 

 2

%  

 1

%  

Total Premium

 

70

%  

70

%  

Volume Non-U.S.:

 

 

 

 

 

Toyota

 

 9

%  

10

%  

Honda

 

 6

%  

 7

%  

Volkswagen

 

 4

%  

 4

%  

Nissan

 

 1

%  

 1

%  

Others

 

 2

%  

 2

%  

Total Volume Non-U.S.

 

22

%  

24

%  

U.S.:

 

 

 

 

 

General Motors / Chrysler / Ford

 

 2

%  

 3

%  

Stand-Alone Used

 

 6

%  

 3

%  

Total

 

100

%  

100

%  

 

 

 

 

 

 

Retail Automotive Geographic Revenue Mix:

 

 

 

 

 

U.S.

 

52

%  

56

%  

U.K.

 

41

%  

38

%  

Other International

 

 7

%  

 6

%  

Total

 

100

%  

100

%  

 

 

 

 

 

 

Retail Automotive Geographic Gross Profit Mix:

 

 

 

 

 

U.S.

 

57

%  

61

%  

U.K.

 

37

%  

34

%  

Other International

 

 6

%  

 5

%  

Total

 

100

%  

100

%  

 

 

 

 

 

9

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PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations Same-Store

Selected Data

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

March 31,

    

2018 vs. 2017

 

    

2018

    

2017

 

Change

    

% Change

Retail Automotive Same-Store Units:

 

 

 

 

 

 

 

 

 

 

 

 

New Retail

 

 

57,925

 

 

58,852

 

 

(927)

 

(1.6)

%  

Used Retail

 

 

53,315

 

 

51,993

 

 

1,322

 

2.5

%  

Total

 

 

111,240

 

 

110,845

 

 

395

 

0.4

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

2,394.5

 

$

2,244.2

 

$

150.3

 

6.7

%  

Used Vehicles

 

 

1,544.4

 

 

1,385.8

 

 

158.6

 

11.4

%  

Finance and Insurance, Net

 

 

137.7

 

 

124.7

 

 

13.0

 

10.4

%  

Service and Parts

 

 

523.3

 

 

484.4

 

 

38.9

 

8.0

%  

Fleet and Wholesale

 

 

229.0

 

 

250.0

 

 

(21.0)

 

(8.4)

%  

Total Revenue

 

$

4,828.9

 

$

4,489.1

 

$

339.8

 

7.6

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

176.0

 

$

172.4

 

$

3.6

 

2.1

%  

Used Vehicles

 

 

85.7

 

 

80.6

 

 

5.1

 

6.3

%  

Finance and Insurance, Net

 

 

137.7

 

 

124.7

 

 

13.0

 

10.4

%  

Service and Parts

 

 

302.5

 

 

283.5

 

 

19.0

 

6.7

%  

Fleet and Wholesale

 

 

4.7

 

 

5.5

 

 

(0.8)

 

(14.5)

%  

Total Gross Profit

 

$

706.6

 

$

666.7

 

$

39.9

 

6.0

%