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Section 1: 8-K (8-K)

PAG 8-K Q3 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):

October 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 October 25, 2018, we issued a press release announcing our third 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 October 25, 2018, we issued a press release announcing our third 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.

 

 

 

October 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)

Exhibit 99_1

 

 

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

 

 

FOR IMMEDIATE RELEASE

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PENSKE AUTOMOTIVE REPORTS RECORD THIRD QUARTER 2018 RESULTS

 

Record Income From Continuing Operations Increases 38.0% to $130.1 Million and

Earnings Per Share Increases 39.1% to $1.53

 

Record Adjusted Income From Continuing Operations Increases 25.7% to $118.5 Million

 

Record Adjusted Earnings Per Share From Continuing Operations Increases 27.3% to $1.40

 

 

BLOOMFIELD HILLS, MI, October 25, 2018 –  Penske Automotive Group, Inc. (NYSE:PAG), an international transportation services company consisting of franchised retail automotive dealerships, stand-alone used vehicle supercenters, heavy and medium duty retail truck dealerships, and distribution of commercial trucks and power systems,  today announced record third quarter and record nine months 2018 results.  For the three months ended September 30, 2018, income from continuing operations attributable to common shareholders increased 38.0% to $130.1 million, and related earnings per share increased 39.1% to $1.53 when compared to the same period last year. Total revenue increased 2.4% to $5.7 billion, while same-store retail revenue increased 0.2%. Excluding foreign exchange, total revenue increased 2.9%, while same-store retail revenue increased 0.5%. Foreign exchange rates negatively impacted earnings per share attributable to common shareholders by $0.01. As a result of tax reform enacted in 2017, the company’s effective tax rate in the third quarter of 2018 was 17.3% compared to 32.2% in the third quarter of 2017. 

For the three and nine months ended September 30, 2018, income and earnings per share from continuing operations attributable to common shareholders included a tax benefit of $11.6 million, or $0.14 per share. This benefit relates to the final reconciliation of the income tax benefit related to the enactment of the 2017 U.S. Tax Cuts and Jobs Act. The third quarter 2018 adjustment primarily relates to reductions in the repatriation tax. Excluding this benefit, adjusted income from continuing operations increased 25.7% to $118.5 million, and related earnings per share increased 27.3% to $1.40 for the three months ended September 30, 2018.

 

 

 

 

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“I am particularly pleased to report another quarter of record revenues, income from continuing operations and earnings per share, which continue to demonstrate the benefit of our diversification,” said Penske Automotive Group Chairman Roger S. Penske. “The strength of our performance in the third quarter was driven by increases in new vehicle, used vehicle and finance & insurance gross profit per retail unit sold, coupled with a 70 basis-point increase in service and parts gross margin. Further, our U.K. business produced another record quarter on the strength of its premium brand mix and stand-alone used vehicle supercenter operations. Also contributing to the company’s record third quarter was the 25.4% same-store retail revenue increase in the company’s North American retail commercial truck business and our investment in Penske Truck Leasing.”

For the nine months ended September 30, 2018, total record revenue increased 8.5% to $17.3 billion, with a 5.0% increase in same-store retail revenue. Record income from continuing operations attributable to common shareholders increased 31.5% to $372.7 million and related earnings per share increased 32.4% to $4.37 when compared to the same period last year. Excluding foreign exchange, total revenue increased 5.8%, while same-store retail revenue increased 2.3%. Foreign exchange rates positively impacted earnings per share attributable to common shareholders by $0.08.  Excluding the tax benefit noted above,  record adjusted income from continuing operations increased 27.4% to $361.1 million, and related earnings per share increased 28.2% to $4.23.

 

Automotive Retail Highlights of the Third Quarter

 

·

Same-Store Retail Unit Sales -2.2%  to 123,799

 

Ø

New unit retail sales -6.6%

 

Ø

Used unit retail sales +2.1%

 

·

Same-Store Retail Revenue +0.2%; Excluding Foreign Exchange +0.5%

 

Ø

New -4.2%;  Used +6.1%;  Finance & Insurance +3.5%;  Service and Parts +1.7%

 

·

Same-Store Average Gross Profit Per Unit 

 

Ø

New $3,030,  +$130/unit; Gross Margin 7.6%,  +10 basis points

 

Ø

Used $1,504,  +$62/unit; Gross Margin 5.7%,  +0 basis points

 

Ø

Finance & Insurance $1,244,  +$68/unit

 

 

 

 

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Stand Alone Used SuperCenter Operations

The company operates fourteen stand-alone used vehicle supercenters, five of which are located in the U.S. and nine are located in the U.K., and one vehicle preparation center in the U.K.  For the three and nine months ended September 30, 2018, these supercenters retailed 18,568 and 56,073 units of the company’s total automotive units retailed, and generated $329.7 million and $1.0 billion in revenue, respectively. The company is in the process of developing four new stand-alone used vehicle supercenters which are expected to open in 2019. The expansion includes two new sites in the U.S. and another two in the U.K.

Retail Commercial Truck Operations

Penske Automotive Group operates twenty-one medium and heavy-duty truck dealership locations in the U.S. and Canada offering primarily Freightliner and Western Star brands. For the three and nine months ended September 30, 2018,  total medium and heavy-duty units retailed increased 35.5% (33.8% same-store) and 44.1% (42.8% same-store), respectively. Same-store revenue increased 25.4% for the three months and 35.0% for the nine months ended September 30, 2018.

Penske Truck Leasing

Penske Truck Leasing Co., L.P. (“PTL”) is a leading provider of full-service truck leasing, truck rental, contract maintenance, and logistics services. During the third quarter of 2017,  the company increased its ownership 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 and nine months ended September 30, 2018,  the company recorded $40.7 million and $91.7 million in earnings from this investment compared to $30.1 million and $66.9 million for the same periods last year, respectively. 

Dividend and Share Repurchases

On October 17, 2018, the company announced that its Board of Directors increased the dividend to its common stock shareholders to $0.37 per share, the 30th consecutive increase in the quarterly dividend.

For the nine months ended September 30, 2018, the company repurchased 1,252,624 shares for $55.8 million. Approximately $150.0 million remains available to repurchase shares under the company’s existing share repurchase authorization.

 

 

 

 

 

 

 

 

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Conference Call

Penske Automotive Group will host a conference call discussing financial results relating to the third quarter of 2018 on Thursday,  October 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) 288‑0329]. The call will also be simultaneously broadcast over the Internet through the Investor’s section of the Penske Automotive Group website. Additionally, an investor presentation relating to the third 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, 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 earnings before interest, taxes, depreciation and amortization (“EBITDA”). The company has reconciled these measures to the most directly comparable GAAP measures in the release. The company believes that these widely accepted measures of operating profitability improve the transparency of the company’s disclosures and provide a meaningful presentation of the company’s results from its core business operations excluding the impact of items not related to the company’s ongoing core business operations, and improve the period-to-period comparability of the company’s results from its core business operations. These non-GAAP financial measures are not substitutes for GAAP financial results, and should only be considered in conjunction with the company’s financial information that is presented in accordance with GAAP.

Caution Concerning Forward Looking Statements

Statements in this press release may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.’s future sales and earnings 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

 

 

 

 

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changes in interest rates and foreign currency exchange rates, changes in tariff 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

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2018

 

2017

 

Change

 

 

2018

 

2017

 

Change

Revenue

 

$

5,658.6

 

$

5,524.4

 

2.4

%  

 

 

$

17,345.8

 

$

15,988.9

 

8.5

%  

Cost of Sales

 

 

4,806.0

 

 

4,701.8

 

2.2

%  

 

 

 

14,739.0

 

 

13,574.7

 

8.6

%  

Gross Profit

 

$

852.6

 

$

822.6

 

3.6

%  

 

 

$

2,606.8

 

$

2,414.2

 

8.0

%  

SG&A Expenses

 

 

662.8

 

 

646.1

 

2.6

%  

 

 

 

2,001.3

 

 

1,869.8

 

7.0

%  

Depreciation

 

 

25.9

 

 

24.3

 

6.6

%  

 

 

 

77.2

 

 

70.0

 

10.3

%  

Operating Income

 

$

163.9

 

$

152.2

 

7.7

%  

 

 

$

528.3

 

$

474.4

 

11.4

%  

Floor Plan Interest Expense

 

 

(20.2)

 

 

(16.4)

 

23.2

%  

 

 

 

(59.0)

 

 

(45.6)

 

29.4

%  

Other Interest Expense

 

 

(28.3)

 

 

(27.8)

 

1.8

%  

 

 

 

(86.7)

 

 

(79.2)

 

9.5

%  

Equity in Earnings of Affiliates

 

 

41.7

 

 

30.9

 

35.0

%  

 

 

 

95.0

 

 

70.9

 

34.0

%  

Income from Continuing Operations Before Income Taxes

 

$

157.1

 

$

138.9

 

13.1

%  

 

 

$

477.6

 

$

420.5

 

13.6

%  

Income Taxes

 

 

(27.1)

 

 

(44.7)

 

(39.4)

%  

 

 

 

(104.7)

 

 

(136.0)

 

(23.0)

%  

Income from Continuing Operations

 

$

130.0

 

$

94.2

 

38.0

%  

 

 

$

372.9

 

$

284.5

 

31.1

%  

Income (Loss) from Discontinued Operations, net of tax

 

 

0.1

 

 

0.1

 

 —

%  

 

 

 

0.2

 

 

(0.3)

 

nm

%  

Net Income

 

$

130.1

 

$

94.3

 

38.0

%  

 

 

$

373.1

 

$

284.2

 

31.3

%  

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

 

 

(0.1)

 

 

(0.1)

 

 —

%  

 

 

 

0.2

 

 

1.0

 

(80.0)

%  

Net Income Attributable to Common Shareholders

 

$

130.2

 

$

94.4

 

37.9

%  

 

 

$

372.9

 

$

283.2

 

31.7

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts Attributable to Common Shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported Income from Continuing Operations

 

$

130.0

 

$

94.2

 

38.0

%  

 

 

$

372.9

 

$

284.5

 

31.1

%  

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

 

 

(0.1)

 

 

(0.1)

 

 —

%

 

 

 

0.2

 

 

1.0

 

(80.0)

%

Income from Continuing Operations, net of tax

 

$

130.1

 

$

94.3

 

38.0

%  

 

 

$

372.7

 

$

283.5

 

31.5

%  

Income (Loss) from Discontinued Operations, net of tax

 

 

0.1

 

 

0.1

 

 —

%

 

 

 

0.2

 

 

(0.3)

 

nm

%

Net Income Attributable to Common Shareholders

 

$

130.2

 

$

94.4

 

37.9

%  

 

 

$

372.9

 

$

283.2

 

31.7

%  

Income from Continuing Operations Per Share

 

$

1.53

 

$

1.10

 

39.1

%  

 

 

$

4.37

 

$

3.30

 

32.4

%  

Income Per Share

 

$

1.53

 

$

1.10

 

39.1

%  

 

 

$

4.37

 

$

3.30

 

32.4

%  

Weighted Average Shares Outstanding

 

 

84.9

 

 

86.0

 

(1.3)

%  

 

 

 

85.3

 

 

85.9

 

(0.7)

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

nm – not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Balance Sheets

(Amounts In Millions)

(Unaudited)

 

 

 

 

 

 

 

 

    

September 30,

    

December 31,

 

 

2018

 

2017

Assets:

 

 

 

 

 

 

Cash and Cash Equivalents

 

$

37.6

 

$

45.7

Accounts Receivable, Net

 

 

953.4

 

 

954.9

Inventories

 

 

3,783.4

 

 

3,944.1

Other Current Assets

 

 

91.8

 

 

81.8

Total Current Assets

 

 

4,866.2

 

 

5,026.5

Property and Equipment, Net

 

 

2,178.2

 

 

2,108.6

Intangibles

 

 

2,164.5

 

 

2,134.5

Other Long-Term Assets

 

 

1,318.0

 

 

1,271.0

Total Assets

 

$

10,526.9

 

$

10,540.6

 

 

 

 

 

 

 

Liabilities and Equity:

 

 

 

 

 

 

Floor Plan Notes Payable

 

$

2,169.5

 

$

2,343.2

Floor Plan Notes Payable – Non-Trade

 

 

1,359.0

 

 

1,418.6

Accounts Payable

 

 

633.8

 

 

641.6

Accrued Expenses

 

 

570.2

 

 

523.5

Current Portion Long-Term Debt

 

 

92.7

 

 

72.8

Liabilities Held for Sale

 

 

0.7

 

 

0.7

Total Current Liabilities

 

 

4,825.9

 

 

5,000.4

Long-Term Debt

 

 

1,993.3

 

 

2,090.4

Other Long-Term Liabilities

 

 

1,095.7

 

 

1,021.8

Total Liabilities

 

 

7,914.9

 

 

8,112.6

Equity

 

 

2,612.0

 

 

2,428.0

Total Liabilities and Equity

 

$

10,526.9

 

$

10,540.6

 

 

 

 

 

 

 

Supplemental Balance Sheet Information

 

 

 

 

 

 

New vehicle days' supply

 

 

61

 

 

67

Used vehicle days' supply

 

 

48

 

 

55

 

 

 

 

 

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PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Operations

Selected Data

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

    

2018

    

2017

    

2018

    

2017

 

Geographic Revenue Mix:

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

57.9

%  

 

58.9

%  

 

55.4

%  

 

58.6

%

U.K.

 

 

34.4

%  

 

33.8

%  

 

36.0

%  

 

33.9

%

Other International

 

 

7.7

%  

 

7.3

%  

 

8.6

%  

 

7.5

%

Total

 

 

100.0

%  

 

100.0

%  

 

100.0

%  

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue: (Amounts in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive

 

$

5,148.5

 

$

5,085.4

 

$

15,900.0

 

$

14,882.5

 

Retail Commercial Trucks

 

 

385.3

 

 

299.6

 

 

1,016.5

 

 

739.8

 

Commercial Vehicles Australia/Power Systems and Other

 

 

124.8

 

 

139.4

 

 

429.3

 

 

366.6

 

Total

 

$

5,658.6

 

$

5,524.4

 

$

17,345.8

 

$

15,988.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit: (Amounts in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive

 

$

762.2

 

$

744.2

 

$

2,338.5

 

$

2,198.5

 

Retail Commercial Trucks

 

 

57.8

 

 

44.3

 

 

156.8

 

 

120.7

 

Commercial Vehicles Australia/Power Systems and Other

 

 

32.6

 

 

34.1

 

 

111.5

 

 

95.0

 

Total

 

$

852.6

 

$

822.6

 

$

2,606.8

 

$

2,414.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive

 

 

14.8

%  

 

14.6

%  

 

14.7

%  

 

14.8

%

Retail Commercial Trucks

 

 

15.0

%  

 

14.8

%

 

15.4

%  

 

16.3

%

Commercial Vehicles Australia/Power Systems and Other

 

 

26.1

%  

 

24.5

%  

 

26.0

%  

 

25.9

%

Total

 

 

15.1

%  

 

14.9

%  

 

15.0

%  

 

15.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

    

 

    

 

    

 

 

    

 

    

 

 

2018

 

2017

 

 

2018

 

2017

 

Operating Items as a Percentage of Revenue:

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

15.1

%  

14.9

%  

 

15.0

%  

15.1

%  

Selling, General and Administrative Expenses

 

11.7

%  

11.7

%  

 

11.5

%  

11.7

%  

Operating Income

 

2.9

%  

2.8

%  

 

3.0

%  

3.0

%  

Income from Continuing Operations Before Income Taxes

 

2.8

%  

2.5

%  

 

2.8

%  

2.6

%  

 

 

 

 

 

 

 

 

 

 

 

Operating Items as a Percentage of Total Gross Profit:

 

 

 

 

 

 

 

 

 

 

Selling, General and Administrative Expenses

 

77.7

%  

78.5

%  

 

76.8

%  

77.5

%  

Operating Income

 

19.2

%  

18.5

%  

 

20.3

%  

19.7

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

    

 

 

    

 

 

    

 

 

 

    

 

 

    

(Amounts in Millions)

 

2018

 

2017

 

 

2018

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA*

 

$

211.3

 

$

191.0

 

 

$

641.5

 

$

569.7

 

Floorplan Credits

 

$

11.1

 

$

10.9

 

 

$

29.9

 

$

29.3

 

Rent Expense

 

$

58.4

 

$

59.3

 

 

$

175.3

 

$

168.1

 

Capital Expenditures

 

$

69.7

 

$

66.7

 

 

$

188.5

 

$

180.1

 

Stock Repurchases

 

$

 —

 

$

10.0

 

 

$

55.8

 

$

18.5

 


* See the following Non-GAAP reconciliation table.

 

 

 

 

 

8

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PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

Selected Data – Revenue and Gross Profit Mix

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

    

2018

    

2017

    

2018

    

2017

 

Retail Automotive Revenue Mix:

 

 

 

 

 

 

 

 

 

Premium:

 

 

 

 

 

 

 

 

 

BMW / MINI

 

23

%  

22

%  

22

%  

23

%

Audi

 

12

%  

15

%  

13

%  

14

%

Mercedes-Benz

 

 9

%  

10

%  

 9

%  

10

%

Land Rover / Jaguar

 

 9

%  

 8

%  

 9

%  

 8

%

Porsche

 

 5

%  

 6

%  

 6

%  

 6

%

Ferrari / Maserati

 

 3

%  

 3

%  

 3

%  

 3

%

Lexus

 

 3

%  

 3

%  

 3

%  

 3

%

Acura

 

 1

%  

 1

%  

 1

%  

 1

%

Bentley

 

 1

%  

 1

%  

 1

%  

 1

%

Others

 

 2

%  

 1

%  

 2

%  

 1

%

Total Premium

 

68

%  

70

%  

69

%  

70

%

Volume Non-U.S.:

 

 

 

 

 

 

 

 

 

Toyota

 

11

%  

10

%  

10

%  

10

%

Honda

 

 7

%  

 7

%  

 6

%  

 7

%

Volkswagen

 

 4

%  

 3

%  

 4

%  

 3

%

Nissan

 

 1

%  

 1

%  

 1

%  

 1

%

Others

 

 1

%  

 2

%  

 2

%  

 2

%

Total Volume Non-U.S.

 

24

%  

23

%  

23

%  

23

%

U.S.:

 

 

 

 

 

 

 

 

 

General Motors / Chrysler / Ford

 

 2

%  

 3

%  

 2

%  

 3

%

Stand-Alone Used

 

 6

%  

 4

%  

 6

%  

 4

%

Total

 

100

%  

100

%  

100

%  

100

%

 

 

 

 

 

 

 

 

 

 

Retail Automotive Geographic Revenue Mix:

 

 

 

 

 

 

 

 

 

U.S.

 

56

%  

58

%  

54

%  

58

%

U.K.

 

38

%  

37

%  

39

%  

36

%

Other International

 

 6

%  

 5

%  

 7

%  

 6

%

Total

 

100

%  

100

%  

100

%  

100

%

 

 

 

 

 

 

 

 

 

 

Retail Automotive Geographic Gross Profit Mix:

 

 

 

 

 

 

 

 

 

U.S.

 

59

%  

62

%  

58

%  

62

%

U.K.

 

35

%  

33

%  

36

%  

32

%

Other International

 

 6

%  

 5

%  

 6

%  

 6

%

Total

 

100

%  

100

%  

100

%  

100

%

 

 

 

 

 

 

9

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PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

    

2018

    

2017

 

Change

    

    

2018

    

2017

 

Change

Retail Automotive Units:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Retail

 

 

58,933

 

 

64,365

 

(8.4)

%  

 

 

 

179,266

 

 

187,377

 

(4.3)

%  

Used Retail

 

 

72,000

 

 

65,892

 

9.3

%  

 

 

 

218,371

 

 

194,384

 

12.3

%  

Total

 

 

130,933

 

 

130,257

 

0.5

%  

 

 

 

397,637

 

 

381,761

 

4.2

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Revenue: (Amounts in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

2,350.2

 

$

2,480.8

 

(5.3)

%  

 

 

$

7,325.6

 

$

7,189.9

 

1.9

%  

Used Vehicles

 

 

1,825.2

 

 

1,669.5

 

9.3

%  

 

 

 

5,588.9

 

 

4,850.6

 

15.2

%  

Finance and Insurance, Net

 

 

158.5

 

 

152.0

 

4.3

%  

 

 

 

482.2

 

 

436.6

 

10.4

%  

Service and Parts

 

 

523.8

 

 

520.9

 

0.6

%  

 

 

 

1,615.1

 

 

1,540.1

 

4.9

%  

Fleet and Wholesale

 

 

290.8

 

 

262.2

 

10.9

%  

 

 

 

888.2

 

 

865.3

 

2.6

%  

Total Revenue

 

$

5,148.5

 

$

5,085.4

 

1.2

%  

 

 

$

15,900.0

 

$

14,882.5

 

6.8

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Gross Profit: (Amounts in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

179.8

 

$

185.2

 

(2.9)

%  

 

 

$

552.8

 

$

552.6

 

 —

%  

Used Vehicles

 

 

105.3

 

 

94.5

 

11.4

%  

 

 

 

327.5

 

 

282.4

 

16.0

%  

Finance and Insurance, Net