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SEC Filings

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016 vs. 2015

 

Service and Parts Data

    

2016

 

2015

 

Change

  

% Change

  

Service and parts revenue

 

$

306.0

 

$

286.0

 

$

20.0

 

7.0

%

Same-store service and parts revenue

 

$

214.7

 

$

221.2

 

$

(6.5)

 

(2.9)

%

Gross profit — service and parts

 

$

113.2

 

$

105.5

 

$

7.7

 

7.3

%

Same-store service and parts gross profit

 

$

86.4

 

$

88.0

 

$

(1.6)

 

(1.8)

%

Gross margin % — service and parts

 

 

37.0

%

 

36.9

%

 

0.1

%

0.3

%

Same-store service and parts gross margin %

 

 

40.2

%

 

39.8

%

 

0.4

%

1.0

%

 

During 2016, Premier Truck Group generated $306.0 million of service and parts revenue and $113.2 million of gross profit. Service and parts revenue increased by $20.0 million and service and parts gross profit increased by $7.7 million from 2015 to 2016. Same-store service and parts revenue decreased by $6.5 million, and same-store service and parts gross profit decreased by $1.6 million from 2015 to 2016, largely due to a decline in parts sales.

 

During 2015, Premier Truck Group generated $286.0 million of service and parts revenue and $105.5 million of gross profit.

 

Premier Truck Group generates service and parts revenue in connection with warranty and customer pay work performed at each of our truck dealerships and through retail sales of parts and accessories. Customer pay work represents approximately 84% of service and parts revenue, largely due to the significant amount of retail parts sold.

 

Commercial Vehicle Distribution Data

 

Our commercial vehicle distribution business is comprised of our Penske Commercial Vehicles Australia business and our Penske Power Systems business, which we acquired on August 30, 2013 and October 1, 2014, respectively. 

 

Penske Commercial Vehicles Australia generated $220.5 million of revenue and $35.5 million of gross profit in 2016 through the distribution and retail sale of 1,049 vehicles and parts sales. During 2015, this business generated $233.6 million of revenue and $37.9 million of gross profit through the distribution and retail sale of 1,243 vehicles and parts sales. During 2014, this business generated $387.0 million of revenue and $62.9 million of gross profit through the distribution and retail sale of 1,773 vehicles and parts sales. We believe the decline in revenue and gross profit from 2015 to 2016 and from 2014 to 2015 is attributable principally to lower units distributed, which we believe is due to difficult macroeconomic conditions, the declining price of commodities, and the weakening of the Australian dollar versus the U.S. dollar, including the impact on the products sold by Penske Commercial Vehicles Australia. 

 

Penske Power Systems generated $208.3 million of revenue and $80.1 million of gross profit in 2016. This business generated $197.9 million of revenue and $72.1 million of gross profit in 2015. From our acquisition date through December 31, 2014, this business generated $52.5 million of revenue and $15.8 million of gross profit. We believe the increase in revenue and gross profit from 2015 to 2016 is attributable to a change in mix of product related sales and continued new order growth, partially offset by a decline in service and parts sales.

 

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