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SEC Filings

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

Retail Automotive Dealership Used Vehicle Data

(In millions, except unit and per unit amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017 vs. 2016

 

 

Used Vehicle Data

    

2017

  

2016

  

Change

  

% Change

  

  

Used retail unit sales

 

 

65,892

 

 

52,536

 

 

13,356

 

25.4

%

 

Same-store used retail unit sales

 

 

53,081

 

 

52,468

 

 

613

 

1.2

%

 

Used retail sales revenue

 

$

1,669.5

 

$

1,440.3

 

$

229.2

 

15.9

%

 

Same-store used retail sales revenue

 

$

1,463.0

 

$

1,438.8

 

$

24.2

 

1.7

%

 

Used retail sales revenue per unit

 

$

25,337

 

$

27,415

 

$

(2,078)

 

(7.6)

%

 

Same-store used retail sales revenue per unit

 

$

27,561

 

$

27,422

 

$

139

 

0.5

%

 

Gross profit — used

 

$

94.5

 

$

83.7

 

$

10.8

 

12.9

%

 

Same-store gross profit — used

 

$

78.7

 

$

83.5

 

$

(4.8)

 

(5.7)

%

 

Average gross profit per used vehicle retailed

 

$

1,434

 

$

1,592

 

$

(158)

 

(9.9)

%

 

Same-store average gross profit per used vehicle retailed

 

$

1,482

 

$

1,592

 

$

(110)

 

(6.9)

%

 

Gross margin % — used

 

 

5.7

%

 

5.8

%

 

(0.1)

%

(1.7)

%

 

Same-store gross margin % — used

 

 

5.4

%

 

5.8

%

 

(0.4)

%

(6.9)

%

 

 

Units

 

Retail unit sales of used vehicles increased from 2016 to 2017 due to a 12,743 unit increase from net dealership acquisitions, coupled with a 613 unit, or 1.2%, increase in same-store used retail unit sales. Used units increased 48.2% internationally and increased 10.0% in the U.S. These increases are primarily due to our 2017 acquisitions of the stand-alone used vehicle dealerships in the U.S. and the U.K., CarSense and CarShop, respectively. Same-store units increased 7.8% internationally and decreased 3.3% in the U.S.

 

Revenues

 

Used vehicle retail sales revenue increased from 2016 to 2017 due to a $205.0 million increase from net dealership acquisitions, coupled with a $24.2 million, or 1.7%, increase in same-store revenues. Excluding $1.8 million of favorable foreign currency fluctuations, same-store used retail revenue increased 1.6%. The same-store revenue increase is primarily due to an increase in same-store used retail unit sales, which increased revenue by $16.9 million, coupled with a $139 per unit increase in comparative average selling prices (including a $33 per unit increase attributable to favorable foreign currency fluctuations), which increased revenue by $7.3 million. The overall decrease in used retail sales revenue per unit is primarily due to lower selling prices from our stand-alone used vehicle dealerships in the U.S. and the U.K., which reduced used retail sales revenue per unit by $2,387.

 

Gross Profit

 

Retail gross profit from used vehicle sales increased from 2016 to 2017 due to a $15.6 million increase from net dealership acquisitions, offset by a $4.8 million, or 5.7%, decrease in same-store gross profit. Excluding $0.1 million of favorable foreign currency fluctuations, same-store gross profit decreased 5.9%. The decrease in same-store gross profit is due to a $110 per unit decrease in average gross profit per used vehicle retailed (offset by a $2 per unit increase attributable to favorable foreign currency fluctuations), which decreased gross profit by $5.7 million, offset by an increase in same-store used retail unit sales, which increased gross profit by $0.9 million.

 

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