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SEC Filings

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

We believe that changes in aggregate floor plan liabilities are typically linked to changes in vehicle inventory, and therefore, are an integral part of understanding changes in our working capital and operating cash flow. As a result, we prepare the following reconciliation to highlight our operating cash flows with all changes in vehicle floor plan being classified as an operating activity for informational purposes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

(In millions)

    

2016

    

2015

    

2014

 

Net cash from continuing operating activities as reported

 

$

365.5

 

$

391.5

 

$

359.3

 

Floor plan notes payable — non-trade as reported

 

 

101.0

 

 

154.2

 

 

26.1

 

Net cash from continuing operating activities including all floor plan notes payable

 

$

466.5

 

$

545.7

 

$

385.4

 

 

Cash Flows from Continuing Investing Activities

 

Cash used in continuing investing activities was $836.7 million, $351.7 million, and $553.7 million during 2016,  2015, and 2014, respectively. Cash flows from continuing investing activities consist primarily of cash used for capital expenditures, net expenditures for acquisitions and other investments. Capital expenditures were $203.1 million, $199.5 million, and $176.1 million during 2016,  2015, and 2014, respectively. Capital expenditures relate primarily to improvements to our existing dealership facilities, the construction of new facilities, the acquisition of the property or buildings associated with existing leased facilities, and the acquisition of land for future development. We currently expect to finance our retail automotive segment and retail commercial truck segment capital expenditures with operating cash flows or borrowings under our U.S. or U.K. credit facilities. Cash used in acquisitions and other investments, net of cash acquired, was $140.8 million, $156.9 million, and $355.0 million during 2016,  2015, and 2014, respectively, and included cash used to repay sellers floor plan liabilities in such business acquisitions of $62.2 million, $60.3 million, and $117.8 million, respectively. Cash used to acquire an additional 14.4% ownership interest in PTL was $498.5 million during 2016. Additionally, cash provided by other investing activities was $5.7 million and $4.7 million during 2016 and 2015, respectively, and cash used in other investing activities was $22.6 million during 2014.

 

Cash Flows from Continuing Financing Activities

 

Cash provided by continuing financing activities was $438.8 million and $164.7 million during 2016 and 2014, respectively, and cash used in continuing financing activities was $49.3 million during 2015. Cash flows from continuing financing activities include net borrowings or repayments of long-term debt, issuance of long-term debt, repurchases of common stock, net borrowings or repayments of floor plan notes payable non-trade, payment of debt issuance costs, and dividends. 

 

We had net borrowings of long-term debt of $122.9 million during 2016 and net repayments of long-term debt of $62.1 million and $71.3 million during 2015 and 2014, respectively. We issued $500.0 million and $300.0 million of senior subordinated notes in 2016 and 2014, respectively, and paid $6.7 million and $4.4 million of debt issuance costs in conjunction with the issuance of the senior subordinated notes during 2016 and 2014, respectively.  We paid $1.8 million of debt issuance costs in 2015 in conjunction with the changes made to our U.K. credit agreement during the year. We had net borrowings of floor plan notes payable non-trade of $101.0 million, $154.2 million, and $26.1 million during 2016, 2015, and 2014, respectively. In 2016, 2015, and 2014, we repurchased 4.7 million, 1.0 million, and 0.3 million shares of common stock for $173.6 million, $48.9 million, and $15.5 million, respectively. We also paid $95.1 million, $84.8 million, and $70.5 million of cash dividends to our stockholders during 2016, 2015, and 2014, respectively.

 

Cash Flows from Discontinued Operations

 

Cash flows relating to discontinued operations are not currently considered, nor are they expected to be, material to our liquidity or our capital resources. Management does not believe that there are any material past, present or upcoming cash transactions relating to discontinued operations.

 

Contractual Payment Obligations

 

The table below sets forth our best estimates as to the amounts and timing of future payments relating to our most significant contractual obligations as of December 31, 2016, excluding amounts related to entities classified as

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