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Section 1: 8-K (8-K)

0001019849false00010198492020-02-052020-02-05

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):

February 5, 2020

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

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Voting Common Stock, par value $0.0001 per share

PAG

New York Stock Exchange

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 February 5, 2020, we issued a press release announcing our fourth quarter and full year 2019 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 February 5, 2020, we issued a press release announcing our fourth quarter and full year 2019 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.

104

Cover Page Interactive Data File (formatted as inline XBRL).

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.

February 5, 2020

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 FOURTH QUARTER 2019 RESULTS

 

Record Fourth Quarter Revenues Up 8.1%

 

Earnings Before Taxes Up 10.2%

 

Record Fourth Quarter 2019 Earnings Per Share Up 8.7% to $1.25

 

Record Fourth Quarter 2019 Earnings Per Share Up 12.6% When Compared to Adjusted 2018

 

BLOOMFIELD HILLS, MI, February 5, 2020 –  Penske Automotive Group, Inc. (NYSE:PAG), a diversified international transportation services company,  today announced fourth quarter and full year 2019 results.  For the three months ended December 31, 2019,  income from continuing operations attributable to common shareholders increased 3.9% to $101.6 million, and related earnings per share increased 8.7% to  $1.25 per share. This compares to income from continuing operations of $97.8 million and related earnings per share of $1.15 in the prior year. Fourth quarter 2018 income from continuing operations and earnings per share attributable to common shareholders included a net benefit of $2.9 million, or $0.04 per share, related to a gain on dealership sales, partially offset by valuation adjustments on certain franchises. Excluding this benefit, income from continuing operations increased 7.1% from $94.9 million, and related earnings per share increased 12.6% from $1.11 compared to adjusted fourth quarter of 2018 results. Foreign exchange rates had no impact on earnings per share attributable to common shareholders for the three months ended December 31, 2019.

Fourth Quarter 2019 Operational Highlights:

·

Revenue increased 8.1%

·

Same-store retail automotive revenue increased 5.5%

·

Earnings before taxes increased 10.2%

·

SG&A expenses as a percentage of gross profit improved 70 basis points to 79.1% and 110 basis points when compared to adjusted fourth quarter 2018

·

Earnings per share increased 12.6% when compared to adjusted 2018

·

New vehicle gross profit per unit retailed increased $257/unit

·

Finance and insurance revenue increased $105/unit

 

 

 

 

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“I am very pleased with the performance of our business in the fourth quarter,” said Penske Automotive Group Chair and CEO Roger Penske. “We grew revenue by 8%, delivered strong gross profit per unit retailed in automotive, improved selling, general and administrative expenses as a percentage of gross profit by 110-basis points and increased earnings per share by 12.6%, when compared to an adjusted fourth quarter of 2018. The strength of our U.S. auto retail operations coupled with the recent commercial truck acquisition, more than offset the challenging market conditions in the U.K. As we have moved into the first quarter of 2020, we are encouraged with the improved business conditions in the U.K., including a stronger order environment, as the U.K. officially separated from the European Union at the end of January.”     

For the twelve months ended December 31, 2019, the company reported income from continuing operations attributable to common shareholders of $435.5 million, or $5.28 per share, compared to $470.5 million, or $5.52 per share in the prior year. The prior year results include an $11.6 million tax benefit from the final reconciliation of the 2017 U.S. Tax Cuts and Jobs Act, representing $0.14 per share, and a net benefit of $4.0 million, or $0.05 per share, related to a gain on dealership sales, partially offset by valuation adjustments on certain franchises. Excluding these items, 2018 adjusted income from continuing operations was $454.9 million and related adjusted earnings per share were $5.34. Foreign exchange rates negatively impacted earnings per share attributable to common shareholders by $0.07.

Used Vehicle SuperCenter Operations

For the three months ended December 31, 2019, the used vehicle supercenters increased units retailed by 3.1% to 15,405 and increased revenue by 12.0% to $292.7 million. Total gross profit per unit retailed increased 3.2%, or $61. During 2019, we opened two greenfield used supercenters, increasing our used vehicle supercenter location total to sixteen (16).

Retail Commercial Truck Operations

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, 2019, total medium and heavy-duty units retailed increased 41.2%, and revenue increased 67.3% to $599.1 million.

Penske Transportation Solutions

Penske Transportation Solutions (“PTS”),  is a leading provider of full-service truck leasing, truck rental, contract maintenance, and logistics services. The company accounts for its ownership interest in PTS using the equity method of accounting. For the three months ended December 31, 2019, the company

 

 

 

 

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recorded $36.4 million in earnings from this investment compared to $37.8 million for the same period last year.

Share Repurchases

For the twelve months ended December 31, 2019, the company repurchased 3,986,836 shares for $174.1 million, or an average of $43.68 per share. As of December 31, 2019, the Company had remaining share repurchase authorization of approximately $200.0 million. 

Conference Call

Penske Automotive Group will host a conference call discussing financial results relating to the fourth quarter of 2019 on Wednesday,  February 5, 2020, at 2:00 p.m. Eastern Standard Time. To listen to the conference call, participants must dial (844) 291-6362 – [International, please dial (234) 720-6995] using access code 5287317. 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 fourth quarter 2019 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 employs nearly  27,000 people worldwide and is a member of the Fortune 500, Russell 1000, and Russell 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 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

 

 

 

 

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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 product availability, 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, changes in interest rates and foreign currency exchange rates, changes in tariff rates, adverse impacts related to the outcome of the United Kingdom’s departure from the European Union, adverse conditions affecting a particular manufacturer, including the adverse impact to the vehicle and parts supply chain due to limited vehicle availability due to WLTP and RDE, 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, 2018, 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

[email protected]

[email protected]

 

# # #

 

 

 

 

 

 

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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,

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Revenue

 

$

5,881.4

 

$

5,439.3

 

8.1

%  

 

 

$

23,179.4

 

$

22,785.1

 

1.7

%  

Cost of Sales

 

 

5,014.9

 

 

4,631.2

 

8.3

%  

 

 

 

19,723.9

 

 

19,370.2

 

1.8

%  

Gross Profit

 

$

866.5

 

$

808.1

 

7.2

%  

 

 

$

3,455.5

 

$

3,414.9

 

1.2

%  

SG&A Expenses

 

 

685.1

 

 

645.0

 

6.2

%  

 

 

 

2,693.2

 

 

2,646.3

 

1.8

%  

Depreciation

 

 

28.6

 

 

26.5

 

7.9

%  

 

 

 

109.6

 

 

103.7

 

5.7

%  

Operating Income

 

$

152.8

 

$

136.6

 

11.9

%  

 

 

$

652.7

 

$

664.9

 

(1.8)

%  

Floor Plan Interest Expense

 

 

(20.3)

 

 

(21.9)

 

(7.3)

%  

 

 

 

(84.5)

 

 

(80.9)

 

4.4

%  

Other Interest Expense

 

 

(31.0)

 

 

(28.0)

 

10.7

%  

 

 

 

(124.2)

 

 

(114.7)

 

8.3

%  

Equity in Earnings of Affiliates

 

 

37.9

 

 

39.8

 

(4.8)

%  

 

 

 

147.5

 

 

134.8

 

9.4

%  

Income from Continuing Operations Before Income Taxes

 

$

139.4

 

$

126.5

 

10.2

%  

 

 

$

591.5

 

$

604.1

 

(2.1)

%  

Income Taxes

 

 

(38.1)

 

 

(29.6)

 

28.7

%  

 

 

 

(156.7)

 

 

(134.3)

 

16.7

%  

Income from Continuing Operations

 

$

101.3

 

$

96.9

 

4.5

%  

 

 

$

434.8

 

$

469.8

 

(7.4)

%  

Income from Discontinued Operations, net of tax

 

 

 —

 

 

0.3

 

nm

 

 

 

 

0.3

 

 

0.5

 

nm

 

Net Income

 

$

101.3

 

$

97.2

 

4.2

%  

 

 

$

435.1

 

$

470.3

 

(7.5)

%  

Less: Loss Attributable to Non-Controlling Interests

 

 

(0.3)

 

 

(0.9)

 

nm

 

 

 

 

(0.7)

 

 

(0.7)

 

nm

 

Net Income Attributable to Common Shareholders

 

$

101.6

 

$

98.1

 

3.6

%  

 

 

$

435.8

 

$

471.0

 

(7.5)

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts Attributable to Common Shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported Income from Continuing Operations

 

$

101.3

 

$

96.9

 

4.5

%  

 

 

$

434.8

 

$

469.8

 

(7.4)

%  

Less: Loss Attributable to Non-Controlling Interests

 

 

(0.3)

 

 

(0.9)

 

nm

 

 

 

 

(0.7)

 

 

(0.7)

 

nm

 

Income from Continuing Operations, net of tax

 

$

101.6

 

$

97.8

 

3.9

%  

 

 

$

435.5

 

$

470.5

 

(7.4)

%  

Income from Discontinued Operations, net of tax

 

 

 —

 

 

0.3

 

nm

 

 

 

 

0.3

 

 

0.5

 

nm

 

Net Income Attributable to Common Shareholders

 

$

101.6

 

$

98.1

 

3.6

%  

 

 

$

435.8

 

$

471.0

 

(7.5)

%  

Income from Continuing Operations Per Share

 

$

1.25

 

$

1.15

 

8.7

%  

 

 

$

5.28

 

$

5.52

 

(4.3)

%  

Income Per Share

 

$

1.25

 

$

1.16

 

7.8

%  

 

 

$

5.28

 

$

5.53

 

(4.5)

%  

Weighted Average Shares Outstanding

 

 

81.1

 

 

84.8

 

(4.4)

%  

 

 

 

82.5

 

 

85.2

 

(3.2)

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

nm – not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Balance Sheets

(Amounts In Millions)

(Unaudited)

 

 

 

 

 

 

 

 

    

December 31,

    

December 31,

 

 

2019

 

2018

Assets:

 

 

 

 

 

 

Cash and Cash Equivalents

 

$

28.1

 

$

39.4

Accounts Receivable, Net

 

 

960.3

 

 

929.1

Inventories

 

 

4,260.7

 

 

4,040.1

Other Current Assets

 

 

85.0

 

 

86.6

Total Current Assets

 

 

5,334.1

 

 

5,095.2

Property and Equipment, Net

 

 

2,366.4

 

 

2,250.0

Operating Lease Right-of-Use Assets

 

 

2,360.5

 

 

 —

Intangibles

 

 

2,463.2

 

 

2,238.2

Other Long-Term Assets

 

 

1,420.2

 

 

1,321.1

Total Assets

 

$

13,944.4

 

$

10,904.5

 

 

 

 

 

 

 

Liabilities and Equity:

 

 

 

 

 

 

Floor Plan Notes Payable

 

$

2,412.5

 

$

2,362.2

Floor Plan Notes Payable – Non-Trade

 

 

1,594.0

 

 

1,428.6

Accounts Payable

 

 

638.8

 

 

598.2

Accrued Expenses and Other Current Liabilities

 

 

701.9

 

 

566.6

Current Portion Long-Term Debt

 

 

103.3

 

 

92.0

Liabilities Held for Sale

 

 

0.5

 

 

0.7

Total Current Liabilities

 

 

5,451.0

 

 

5,048.3

Long-Term Debt

 

 

2,257.0

 

 

2,124.7

Long-Term Operating Lease Liabilities

 

 

2,301.2

 

 

 —

Other Long-Term Liabilities

 

 

1,123.6

 

 

1,096.8

Total Liabilities

 

 

11,132.8

 

 

8,269.8

Equity

 

 

2,811.6

 

 

2,634.7

Total Liabilities and Equity

 

$

13,944.4

 

$

10,904.5

 

 

 

 

 

 

 

Supplemental Balance Sheet Information

 

 

 

 

 

 

New vehicle days' supply

 

 

71

 

 

72

Used vehicle days' supply

 

 

52

 

 

57

 

 

 

 

 

6

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PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Operations

Selected Data

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

    

2019

    

2018

    

2019

    

2018

 

Geographic Revenue Mix:

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

62.4

%  

 

60.0

%  

 

59.3

%  

 

56.5

%

U.K.

 

 

29.3

%  

 

31.6

%  

 

32.6

%  

 

35.0

%

Other International

 

 

8.3

%  

 

8.4

%  

 

8.1

%  

 

8.5

%

Total

 

 

100.0

%  

 

100.0

%  

 

100.0

%  

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue: (Amounts in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive

 

$

5,162.7

 

$

4,949.2

 

$

20,615.8

 

$

20,849.2

 

Retail Commercial Trucks

 

 

599.1

 

 

358.0

 

 

2,050.5

 

 

1,374.5

 

Commercial Vehicles Australia/Power Systems and Other

 

 

119.6

 

 

132.1

 

 

513.1

 

 

561.4

 

Total

 

$

5,881.4

 

$

5,439.3

 

$

23,179.4

 

$

22,785.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit: (Amounts in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive

 

$

755.1

 

$

720.1

 

$

3,038.9

 

$

3,058.6

 

Retail Commercial Trucks

 

 

78.3

 

 

54.7

 

 

277.8

 

 

211.5

 

Commercial Vehicles Australia/Power Systems and Other

 

 

33.1

 

 

33.3

 

 

138.8

 

 

144.8

 

Total

 

$

866.5

 

$

808.1

 

$

3,455.5

 

$

3,414.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive

 

 

14.6

%  

 

14.5

%  

 

14.7

%  

 

14.7

%

Retail Commercial Trucks

 

 

13.1

%  

 

15.3

%

 

13.5

%  

 

15.4

%

Commercial Vehicles Australia/Power Systems and Other

 

 

27.7

%  

 

25.2

%  

 

27.1

%  

 

25.8

%

Total

 

 

14.7

%  

 

14.9

%  

 

14.9

%  

 

15.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31,

 

December 31,

 

    

 

    

 

    

 

 

    

 

    

 

 

2019

 

2018

 

 

2019

 

2018

 

Operating Items as a Percentage of Revenue:

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

14.7

%  

14.9

%  

 

14.9

%  

15.0

%  

Selling, General and Administrative Expenses

 

11.6

%  

11.9

%  

 

11.6

%  

11.6

%  

Operating Income

 

2.6

%  

2.5

%  

 

2.8

%  

2.9

%  

Income from Continuing Operations Before Income Taxes

 

2.4

%  

2.3

%  

 

2.6

%  

2.7

%  

 

 

 

 

 

 

 

 

 

 

 

Operating Items as a Percentage of Total Gross Profit:

 

 

 

 

 

 

 

 

 

 

Selling, General and Administrative Expenses

 

79.1

%  

79.8

%  

 

77.9

%  

77.5

%  

Operating Income

 

17.6

%  

16.9

%  

 

18.9

%  

19.5

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31,

 

December 31,

 

    

 

 

    

 

 

    

 

 

 

    

 

 

    

(Amounts in Millions)

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA*

 

$

199.0

 

$

181.0

 

 

$

825.3

 

$

822.5

 

Floorplan Credits

 

$

9.9

 

$

10.4

 

 

$

37.2

 

$

40.3

 

Rent Expense

 

$

58.6

 

$

56.8

 

 

$

232.0

 

$

232.1

 

Capital Expenditures

 

$

56.5

 

$

117.1

 

 

$

245.3

 

$

305.6

 

Stock Repurchases

 

$

 —

 

$

13.1

 

 

$

174.1

 

$

68.9

 


* See the following Non-GAAP reconciliation table.

 

 

 

 

 

7

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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,

 

 

    

2019

    

2018

    

2019

    

2018

 

Retail Automotive Revenue Mix:

 

 

 

 

 

 

 

 

 

Premium:

 

 

 

 

 

 

 

 

 

BMW / MINI

 

24

%  

23

%  

23

%  

23

%

Audi

 

12

%  

12

%  

12

%  

13

%

Mercedes-Benz

 

10

%  

10

%  

10

%  

 9

%

Land Rover / Jaguar

 

 8

%  

10

%  

 9

%  

 9

%

Porsche

 

 7

%  

 5

%  

 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

%  

 2

%  

 2

%  

 2

%

Total Premium

 

71

%  

70

%  

70

%  

70

%

Volume Non-U.S.:

 

 

 

 

 

 

 

 

 

Toyota

 

10

%  

10

%  

10

%  

10

%

Honda

 

 6

%  

 7

%  

 6

%  

 6

%

Volkswagen

 

 3

%  

 4

%  

 4

%  

 4

%

Nissan

 

 1

%  

 1

%  

 1

%  

 1

%

Others

 

 2

%  

 1

%  

 2

%  

 1

%

Total Volume Non-U.S.

 

22

%  

23

%  

23

%  

22

%

U.S.:

 

 

 

 

 

 

 

 

 

General Motors / Chrysler / Ford

 

 1

%  

 2

%  

 1

%  

 2

%

Stand-Alone Used

 

 6

%  

 5

%  

 6

%  

 6

%

Total

 

100

%  

100

%  

100

%  

100

%

 

 

 

 

 

 

 

 

 

 

Retail Automotive Geographic Revenue Mix:

 

 

 

 

 

 

 

 

 

U.S.

 

60

%  

59

%  

57

%  

55

%

U.K.

 

33

%  

35

%  

37

%  

38

%

Other International

 

 7

%  

 6

%  

 6

%  

 7

%

Total

 

100

%  

100

%  

100

%  

100

%

 

 

 

 

 

 

 

 

 

 

Retail Automotive Geographic Gross Profit Mix:

 

 

 

 

 

 

 

 

 

U.S.

 

63

%  

63

%  

61

%  

59

%

U.K.

 

31

%  

31

%  

33

%  

35

%

Other International

 

 6

%  

 6

%  

 6

%  

 6

%

Total

 

100

%  

100

%  

100

%  

100

%

 

 

 

 

 

 

8

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PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

December 31,

 

 

December 31,

 

    

2019

    

2018

 

Change

    

    

2019

    

2018

 

Change

Retail Automotive Units:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Retail

 

 

55,974

 

 

56,698

 

(1.3)

%  

 

 

 

222,704

 

 

235,964

 

(5.6)

%  

Used Retail

 

 

65,284

 

 

64,171

 

1.7

%  

 

 

 

284,190

 

 

282,542

 

0.6

%  

Total

 

 

121,258

 

 

120,869

 

0.3

%  

 

 

 

506,894

 

 

518,506

 

(2.2)

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Revenue: (Amounts in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

2,445.4

 

$

2,340.8

 

4.5

%  

 

 

$

9,329.5

 

$

9,666.4

 

(3.5)

%  

Used Vehicles

 

 

1,712.0

 

 

1,663.2

 

2.9

%  

 

 

 

7,241.2

 

 

7,252.1

 

(0.2)

%  

Finance and Insurance, Net

 

 

160.6

 

 

147.4

 

9.0

%  

 

 

 

652.1

 

 

629.6

 

3.6

%  

Service and Parts

 

 

541.9

 

 

536.3

 

1.0

%  

 

 

 

2,195.9

 

 

2,151.4

 

2.1

%  

Fleet and Wholesale

 

 

302.8

 

 

261.5

 

15.8

%  

 

 

 

1,197.1

 

 

1,149.7

 

4.1

%  

Total Revenue

 

$

5,162.7

 

$

4,949.2

 

4.3

%  

 

 

$

20,615.8

 

$

20,849.2

 

(1.1)

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Gross Profit: (Amounts in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

183.9

 

$

171.8

 

7.0

%  

 

 

$

695.6

 

$

724.6

 

(4.0)

%  

Used Vehicles

 

 

81.9

 

 

81.6

 

0.4

%  

 

 

 

366.1

 

 

409.1

 

(10.5)

%  

Finance and Insurance, Net

 

 

160.6

 

 

147.4

 

9.0

%  

 

 

 

652.1

 

 

629.6

 

3.6

%  

Service and Parts

 

 

324.4

 

 

317.8

 

2.1

%  

 

 

 

1,305.8

 

 

1,277.3

 

2.2

%  

Fleet and Wholesale

 

 

4.3

 

 

1.5

 

186.7

%  

 

 

 

19.3

 

 

18.0

 

7.2

%  

Total Gross Profit

 

$

755.1

 

$

720.1

 

4.9

%  

 

 

$

3,038.9

 

$

3,058.6

 

(0.6)

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Revenue Per Vehicle Retailed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

43,689

 

$

41,285

 

5.8

%  

 

 

$

41,892

 

$

40,966

 

2.3

%  

Used Vehicles

 

 

26,224

 

 

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