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SEC Filings

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

Selling, General and Administrative

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016 vs. 2015

 

 

 

 

 

 

 

2015 vs. 2014

 

Selling, General and Administrative Data

  

2016

  

2015

  

Change

   

% Change

     

2015

  

2014

  

Change

  

% Change

   

Personnel expense

 

$

1,317.5

 

$

1,278.7

 

$

38.8

 

3.0

$

1,278.7

 

$

1,133.1

 

$

145.6

 

12.8

Advertising expense

 

$

102.5

 

$

101.0

 

$

1.5

 

1.5

$

101.0

 

$

93.7

 

$

7.3

 

7.8

Rent & related expense

 

$

291.2

 

$

288.5

 

$

2.7

 

0.9

$

288.5

 

$

270.7

 

$

17.8

 

6.6

Other expense

 

$

590.8

 

$

554.8

 

$

36.0

 

6.5

$

554.8

 

$

511.1

 

$

43.7

 

8.6

Total SG&A expenses

 

$

2,302.0

 

$

2,223.0

 

$

79.0

 

3.6

$

2,223.0

 

$

2,008.6

 

$

214.4

 

10.7

Same-store SG&A expenses

 

$

2,135.3

 

$

2,174.0

 

$

(38.7)

 

(1.8)

$

1,993.2

 

$

1,951.5

 

$

41.7

 

2.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel expense as % of gross profit

 

 

44.4

%

 

44.6

%

 

(0.2)

%

(0.4)

 

44.6

%

 

44.0

%

 

0.6

%

1.4

Advertising expense as % of gross profit

 

 

3.5

%

 

3.5

%

 

 —

%

 —

 

3.5

%

 

3.6

%

 

(0.1)

%

(2.8)

Rent & related expense as % of gross profit

 

 

9.8

%

 

10.1

%

 

(0.3)

%

(3.0)

 

10.1

%

 

10.5

%

 

(0.4)

%

(3.8)

Other expense as % of gross profit

 

 

19.9

%

 

19.3

%

 

0.6

%

3.1

 

19.3

%

 

19.8

%

 

(0.5)

%

(2.5)

Total SG&A expenses as % of gross profit

 

 

77.6

%

 

77.5

%

 

0.1

%

0.1

 

77.5

%

 

77.9

%

 

(0.4)

%

(0.5)

Same-store SG&A expenses as % of same-store gross profit

 

 

77.1

%

 

77.6

%

 

(0.5)

%

(0.6)

 

77.6

%

 

77.7

%

 

(0.1)

%

(0.1)

 

Selling, general and administrative (“SG&A”) expenses increased from 2015 to 2016 due to a $117.7 million increase from net acquisitions, offset by a $38.7 million, or 1.8%, decrease in same-store SG&A. The decrease in same-store SG&A is primarily due to a decrease in same-store variable personnel expenses as a result of the 1.0% decrease in same-store retail gross profit versus the prior year, as well as an $81.8 million decrease due to negative foreign currency fluctuations.  Excluding the reduction related to foreign currency fluctuations, same-store SG&A increased 2.0%. 

 

The increase from 2014 to 2015 is due to a $172.7 million increase from net acquisitions, coupled with a $41.7 million, or 2.1%, increase in same-store SG&A expenses. Excluding $64.6 million of foreign currency fluctuations, same-store SG&A increased 5.4%. The increase in same-store SG&A is due primarily to a net increase in variable personnel expenses, as a result of the 6.5% increase (adjusted for foreign currency fluctuations) in same-store retail gross profit versus the prior year.

 

SG&A expenses as a percentage of total revenue were 11.4%, 11.5% and 11.7% in 2016,  2015, and 2014, respectively, and as a percentage of gross profit were 77.6%, 77.5%, and 77.9%, in 2016,  2015, and 2014, respectively.

 

Depreciation

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016 vs. 2015

 

 

 

 

 

 

 

2015 vs. 2014

 

 

    

2016

    

2015

    

Change

    

% Change

    

2015

    

2014

    

Change

    

% Change

 

Depreciation

 

$

89.7

 

$

78.0

 

$

11.7

 

15.0

%  

$

78.0

 

$

70.2

 

$

7.8

 

11.1

%  

 

The increase in depreciation from 2015 to 2016 is due to a $7.4 million increase from net acquisitions, coupled with a $4.3 million, or 5.6%, increase in same-store depreciation during the year. The increase from 2014 to 2015 is due to a $4.9 million increase from net acquisitions, coupled with a $2.9 million, or 4.2%, increase in same-store depreciation during the year. The overall increases are primarily related to our ongoing facility improvement and expansion programs.    

 

Floor Plan Interest Expense

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016 vs. 2015

 

 

 

 

 

 

 

2015 vs. 2014

 

 

    

2016

    

2015

    

Change

    

% Change

    

2015

    

2014

    

Change

    

% Change

 

Floor plan interest expense

 

$

50.9

 

$

44.5

 

$

6.4

 

14.4

%  

$

44.5

 

$

46.5

 

$

(2.0)

 

(4.3)

%  

 

The increase in floor plan interest expense from 2015 to 2016 is due to a $3.2 million increase from net dealership acquisitions, coupled with a $3.2 million, or 7.4%, increase in same-store floor plan interest expense. The decrease from

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