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SEC Filings

10-Q
PENSKE AUTOMOTIVE GROUP, INC. filed this Form 10-Q on 10/26/2017
Entire Document
 

Results of Operations

 

The following tables present comparative financial data relating to our operating performance in the aggregate and on a “same-store” basis. Dealership results are included in same-store comparisons when we have consolidated the acquired entity during the entirety of both periods being compared. As an example, if a dealership was acquired on January 15, 2015, the results of the acquired entity would be included in annual same-store comparisons beginning with the year ended December 31, 2017 and in quarterly same-store comparisons beginning with the quarter ended June 30, 2016.

 

Three Months Ended September 30, 2017 Compared to Three Months Ended September 30, 2016

 

Retail Automotive Dealership New Vehicle Data

(In millions, except unit and per unit amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017 vs. 2016

 

 

New Vehicle Data

    

2017

  

2016

  

Change

  

% Change

  

  

New retail unit sales

 

 

64,365

 

 

65,986

 

 

(1,621)

 

(2.5)

%

 

Same-store new retail unit sales

 

 

61,860

 

 

65,920

 

 

(4,060)

 

(6.2)

%

 

New retail sales revenue

 

$

2,480.8

 

$

2,449.2

 

$

31.6

 

1.3

%

 

Same-store new retail sales revenue

 

$

2,362.1

 

$

2,446.6

 

$

(84.5)

 

(3.5)

%

 

New retail sales revenue per unit

 

$

38,542

 

$

37,117

 

$

1,425

 

3.8

%

 

Same-store new retail sales revenue per unit

 

$

38,185

 

$

37,114

 

$

1,071

 

2.9

%

 

Gross profit — new

 

$

185.2

 

$

177.6

 

$

7.6

 

4.3

%

 

Same-store gross profit — new

 

$

175.7

 

$

177.4

 

$

(1.7)

 

(1.0)

%

 

Average gross profit per new vehicle retailed

 

$

2,877

 

$

2,691

 

$

186

 

6.9

%

 

Same-store average gross profit per new vehicle retailed

 

$

2,841

 

$

2,691

 

$

150

 

5.6

%

 

Gross margin % — new

 

 

7.5

%

 

7.3

%

 

0.2

%

2.7

%

 

Same-store gross margin % — new

 

 

7.4

%

 

7.3

%

 

0.1

%

1.4

%

 

 

Units

 

Retail unit sales of new vehicles decreased from 2016 to 2017 due to a 4,060 unit, or 6.2%, decrease in same-store new retail unit sales, offset by a 2,439 unit increase from net dealership acquisitions.  New units decreased 1.0% in the U.S. and decreased 4.7% internationally. Same-store units decreased 3.3% in the U.S., primarily due to a decline in premium brand sales, and decreased 10.5% internationally, primarily due to a decline in sales in Germany. 

 

Revenues

 

New vehicle retail sales revenue increased from 2016 to 2017 due to a  $116.1 million increase from net dealership acquisitions, offset by an $84.5 million, or 3.5%, decrease in same-store revenues. Excluding $4.7 million of favorable foreign currency fluctuations, same-store new retail revenue decreased 3.6%. The same-store revenue decrease is due to a decrease in same-store unit sales, which decreased revenue by $150.7 million, offset by a $1,071 per unit increase in comparative average selling prices (including a $77 per unit increase attributable to favorable foreign currency fluctuations), which increased revenue by $66.2 million.

 

Gross Profit

 

Retail gross profit from new vehicle sales increased from 2016 to 2017 due to a $9.3 million increase from net dealership acquisitions, offset by a $1.7 million, or 1.0%, decrease in same-store gross profit. Excluding $0.7 million of favorable foreign currency fluctuations, same-store gross profit decreased 1.4%. The decrease in same-store gross profit is due to a decrease in same-store new retail unit sales, which decreased gross profit by $10.9 million, offset by a $150 per unit increase in the average gross profit per new vehicle retailed (including a $12 per unit increase attributable to favorable foreign currency fluctuations), which increased gross profit by $9.2 million.

 

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