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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 Finance and Insurance Data

(In millions, except unit and per unit amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017 vs. 2016

 

 

Finance and Insurance Data

    

2017

  

2016

  

Change

  

% Change

  

  

Total retail unit sales

 

 

130,257

 

 

118,522

 

 

11,735

 

9.9

%

 

Total same-store retail unit sales

 

 

114,941

 

 

118,388

 

 

(3,447)

 

(2.9)

%

 

Finance and insurance revenue

 

$

152.0

 

$

129.0

 

$

23.0

 

17.8

%

 

Same-store finance and insurance revenue

 

$

135.4

 

$

128.9

 

$

6.5

 

5.0

%

 

Finance and insurance revenue per unit

 

$

1,167

 

$

1,088

 

$

79

 

7.3

%

 

Same-store finance and insurance revenue per unit

 

$

1,178

 

$

1,089

 

$

89

 

8.2

%

 

 

Finance and insurance revenue increased from 2016 to 2017 due to a $16.5 million increase from net dealership acquisitions, coupled with a $6.5 million, or 5.0%,  increase in same-store revenues. Excluding $0.1 million of favorable foreign currency fluctuations, same-store finance and insurance revenue increased 5.0%. The same-store revenue increase is due an $89 per unit increase in finance and insurance revenue per unit, which increased revenue by $10.3 million, offset by a decrease in same-store retail unit sales, which decreased revenue by $3.8 million. We believe the increase in same-store finance and insurance revenue per unit is primarily due to our efforts to increase finance and insurance revenue, which include adding resources to target underperforming locations, product penetration, and changes to product portfolios.

 

Retail Automotive Dealership Service and Parts Data

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017 vs. 2016

 

 

Service and Parts Data

    

2017

  

2016

  

Change

  

% Change

  

  

Service and parts revenue

 

$

520.9

 

$

492.2

 

$

28.7

 

5.8

%

 

Same-store service and parts revenue

 

$

498.8

 

$

491.3

 

$

7.5

 

1.5

%

 

Gross profit — service and parts

 

$

308.0

 

$

280.9

 

$

27.1

 

9.6

%

 

Same-store service and parts gross profit

 

$

293.1

 

$

280.4

 

$

12.7

 

4.5

%

 

Gross margin % — service and parts

 

 

59.1

%

 

57.1

%

 

2.0

%

3.5

%

 

Same-store service and parts gross margin %

 

 

58.8

%

 

57.1

%

 

1.7

%

3.0

%

 

 

Revenues

 

Service and parts revenue increased from 2016 to 2017, with an increase of 13.9% internationally and 2.4% in the U.S. The overall increase in service and parts revenue is due to a $21.2 million increase from net dealership acquisitions, coupled with a $7.5 million, or 1.5%, increase in same-store revenues during the period. Excluding $1.1 million of favorable foreign currency fluctuations, same-store service and parts revenue increased 1.3%. The increase in same-store revenue is due to a $10.1 million, or 8.4%, increase in warranty revenue, and a $0.2 million, or 0.5%, increase in vehicle preparation and body shop revenue, offset by a $2.8 million, or 0.8%, decrease in customer pay revenue.

 

Gross Profit

 

Service and parts gross profit increased from 2016 to 2017 due to a $14.4 million increase from net dealership acquisitions, coupled with a $12.7 million, or 4.5%, increase in same-store gross profit during the period. Excluding $0.5 million of favorable foreign currency fluctuations, same-store gross profit increased 4.4%. The same-store gross profit increase is due to a 1.7% increase in gross margin, which increased gross profit by $8.3 million, coupled with the increase in same-store revenues, which increased gross profit by $4.4 million. The same-store gross profit increase is due to a $7.1 million, or 11.6%, increase in warranty gross profit, a  $5.0 million, or 3.3%, increase in customer pay gross profit, and a  $0.6 million, or 0.9%, increase in vehicle preparation and body shop gross profit.

 

 

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