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SEC Filings

10-K
PENSKE AUTOMOTIVE GROUP, INC. filed this Form 10-K on 02/24/2017
Entire Document
 

Retail Automotive Dealership New Vehicle Data

(In millions, except unit and per unit amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016 vs. 2015

 

 

 

 

 

 

 

 

2015 vs. 2014

 

New Vehicle Data

    

2016

  

2015

  

Change

  

% Change

  

  

2015

  

2014

  

Change

  

% Change

  

New retail unit sales

 

 

249,695

 

 

233,524

 

 

16,171

 

6.9

%

 

 

233,524

 

 

216,609

 

 

16,915

 

7.8

%

Same-store new retail unit sales

 

 

229,401

 

 

227,138

 

 

2,263

 

1.0

%

 

 

223,692

 

 

213,798

 

 

9,894

 

4.6

%

New retail sales revenue

 

$

9,547.1

 

$

9,208.9

 

$

338.2

 

3.7

%

 

$

9,208.9

 

$

8,698.8

 

$

510.1

 

5.9

%

Same-store new retail sales revenue

 

$

8,941.3

 

$

9,065.5

 

$

(124.2)

 

(1.4)

%

 

$

8,917.2

 

$

8,573.0

 

$

344.2

 

4.0

%

New retail sales revenue per unit

 

$

38,235

 

$

39,434

 

$

(1,199)

 

(3.0)

%

 

$

39,434

 

$

40,159

 

$

(725)

 

(1.8)

%

Same-store new retail sales revenue per unit

 

$

38,977

 

$

39,912

 

$

(935)

 

(2.3)

%

 

$

39,864

 

$

40,099

 

$

(235)

 

(0.6)

%

Gross profit — new

 

$

733.8

 

$

706.9

 

$

26.9

 

3.8

%

 

$

706.9

 

$

674.6

 

$

32.3

 

4.8

%

Same-store gross profit — new

 

$

662.9

 

$

685.9

 

$

(23.0)

 

(3.4)

%

 

$

676.5

 

$

666.5

 

$

10.0

 

1.5

%

Average gross profit per new vehicle retailed

 

$

2,939

 

$

3,027

 

$

(88)

 

(2.9)

%

 

$

3,027

 

$

3,115

 

$

(88)

 

(2.8)

%

Same-store average gross profit per new vehicle retailed

 

$

2,890

 

$

3,020

 

$

(130)

 

(4.3)

%

 

$

3,024

 

$

3,117

 

$

(93)

 

(3.0)

%

Gross margin % — new

 

 

7.7

%

 

7.7

%

 

 —

%

 —

%

 

 

7.7

%

 

7.8

%

 

(0.1)

%

(1.3)

%

Same-store gross margin % — new

 

 

7.4

%

 

7.6

%

 

(0.2)

%

(2.6)

%

 

 

7.6

%

 

7.8

%

 

(0.2)

%

(2.6)

%

 

Units

 

Retail unit sales of new vehicles increased from 2015 to 2016, with an increase of 21.4% internationally and a decrease of 0.5% in the U.S. The increase is due to a 13,908 unit increase from net dealership acquisitions, coupled with a 2,263 unit, or 1.0%, increase in same-store new retail unit sales during the year. New units increased internationally primarily due to inclusion of our German automotive dealership joint venture which we began consolidating during the third quarter of 2015, as well as due to the strong performance of our U.K. business, which experienced a 7.4% increase in same-store new unit sales. The same-store unit decrease in the U.S. was driven primarily by an increased focus on improvements to gross profit, which negatively impacted unit sales. Overall, same-store units increased 7.4% internationally and decreased 2.1% in the U.S.

 

The increase from 2014 to 2015 is due to a 9,894 unit, or 4.6%, increase in same-store new retail unit sales, coupled with a 7,021 unit increase from net dealership acquisitions during the year. Same-store units increased 2.3% in the U.S. and 9.8% internationally due in part to more favorable macro-economic conditions in the U.S. and in the U.K. The overall same-store increase was driven primarily by a 6.4% increase in our premium brands.

 

Overall, we believe our premium brands, particularly internationally, are being positively impacted by favorable market conditions, including low levels of unemployment, strong credit availability and attractive financing offers, lower consumer fuel costs, and the introduction of new models and evolving technology.

 

Revenues

 

New vehicle retail sales revenue increased from 2015 to 2016 due to a $462.4 million increase from net dealership acquisitions, offset by a $124.2 million, or 1.4%, decrease in same-store revenues. Excluding $364.0 million of negative foreign currency fluctuations, same-store new retail revenue increased 2.6%. The same-store revenue decrease is due to the $935 per unit decrease in comparative average selling prices per unit (including a $1,586 per unit decrease attributable to negative foreign currency fluctuations), which decreased revenue by $212.4 million, somewhat offset by an increase in same-store new retail unit sales, which increased revenue by $88.2 million.

 

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