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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 Finance and Insurance Data

(In millions, except unit and per unit amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016 vs. 2015

 

 

 

 

 

 

 

 

2015 vs. 2014

 

Finance and Insurance Data

    

2016

  

2015

  

Change

  

% Change

  

  

2015

  

2014

  

Change

  

% Change

  

Total retail unit sales

 

 

457,251

 

 

431,983

 

 

25,268

 

5.8

%

 

 

431,983

 

 

398,718

 

 

33,265

 

8.3

%

Total same-store retail unit sales

 

 

420,635

 

 

419,231

 

 

1,404

 

0.3

%

 

 

413,240

 

 

393,953

 

 

19,287

 

4.9

%

Finance and insurance revenue

 

$

495.0

 

$

478.3

 

$

16.7

 

3.5

%

 

$

478.3

 

$

436.0

 

$

42.3

 

9.7

%

Same-store finance and insurance revenue

 

$

483.8

 

$

476.3

 

$

7.5

 

1.6

%

 

$

471.6

 

$

432.2

 

$

39.4

 

9.1

%

Finance and insurance revenue per unit

 

$

1,082

 

$

1,107

 

$

(25)

 

(2.3)

%

 

$

1,107

 

$

1,093

 

$

14

 

1.3

%

Same-store finance and insurance revenue per unit

 

$

1,150

 

$

1,136

 

$

14

 

1.2

%

 

$

1,141

 

$

1,097

 

$

44

 

4.0

%

 

Finance and insurance revenue increased from 2015 to 2016 due to a $9.2 million increase from net dealership acquisitions, coupled with a $7.5 million, or 1.6%, increase in same-store revenues. Excluding $21.7 million of negative foreign currency fluctuations, same-store finance and insurance revenue increased 6.1%. The same-store revenue increase is due to an increase in comparative average selling prices per unit, which increased revenue by $5.9 million, coupled with the increase in same-store retail unit sales, which increased revenue by $1.6 million. Finance and insurance revenue per unit decreased due to a $97 per unit decrease internationally (including a $49 per unit decrease attributable to negative foreign currency fluctuations), as well as due to inclusion of our German automotive dealership joint venture which we began consolidating during the third quarter of 2015. This decrease is somewhat offset by an increase in finance and insurance revenue per unit in the U.S., which increased 2.4% to $1,150 per unit.

 

The increase from 2014 to 2015 is due to a $39.4 million, or 9.1%, increase in same-store revenues, coupled with a $2.9 million increase from net dealership acquisitions. Excluding $13.0 million of negative foreign currency fluctuations, same-store finance and insurance revenue increased 12.1%. The same-store revenue increase is due to the increase in same-store retail unit sales, which increased revenue by $22.0 million, coupled with an increase in comparative average selling prices per unit, which increased revenue by $17.4 million. Finance and insurance revenue per unit increased 6.6% to $1,123 per unit in the U.S. but decreased 8.5% to $1,077 per unit internationally due primarily to negative foreign currency fluctuations. Excluding $30 of negative foreign currency fluctuations per unit, finance and insurance revenue per unit was $1,137.

 

We believe the overall increase in same-store finance and insurance revenue per unit, particularly in the U.S., is due to our efforts to increase finance and insurance revenue, which include adding resources to drive additional training, product penetration, changes to product portfolios, and targeting underperforming locations.

 

Retail Automotive Dealership Service and Parts Data

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016 vs. 2015

 

 

 

 

 

 

 

 

2015 vs. 2014

 

Service and Parts Data

    

2016

  

2015

  

Change

  

% Change

  

  

2015

  

2014

  

Change

  

% Change

  

Service and parts revenue

 

$

1,948.6

 

$

1,830.7

 

$

117.9

 

6.4

%

 

$

1,830.7

 

$

1,716.9

 

$

113.8

 

6.6

%

Same-store service and parts revenue

 

$

1,830.3

 

$

1,790.8

 

$

39.5

 

2.2

%

 

$

1,759.6

 

$

1,693.9

 

$

65.7

 

3.9

%

Gross profit — service and parts

 

$

1,129.7

 

$

1,084.0

 

$

45.7

 

4.2

%

 

$

1,084.0

 

$

1,021.6

 

$

62.4

 

6.1

%

Same-store service and parts gross profit

 

$

1,073.9

 

$

1,068.9

 

$

5.0

 

0.5

%

 

$

1,051.7

 

$

1,008.9

 

$

42.8

 

4.2

%

Gross margin % — service and parts

 

 

58.0

%

 

59.2

%

 

(1.2)

%

(2.0)

%

 

 

59.2

%

 

59.5

%

 

(0.3)

%

(0.5)

%

Same-store service and parts gross margin %

 

 

58.7

%

 

59.7

%

 

(1.0)

%

(1.7)

%

 

 

59.8

%

 

59.6

%

 

0.2

%

0.3

%

 

41