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SEC Filings

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

Nine Months Ended September 30, 2017 Compared to Nine 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

 

 

187,377

 

 

186,909

 

 

468

 

0.3

%

Same-store new retail unit sales

 

 

175,726

 

 

184,087

 

 

(8,361)

 

(4.5)

%

New retail sales revenue

 

$

7,189.9

 

$

7,178.4

 

$

11.5

 

0.2

%

Same-store new retail sales revenue

 

$

6,735.8

 

$

7,081.8

 

$

(346.0)

 

(4.9)

%

New retail sales revenue per unit

 

$

38,371

 

$

38,406

 

$

(35)

 

(0.1)

%

Same-store new retail sales revenue per unit

 

$

38,331

 

$

38,470

 

$

(139)

 

(0.4)

%

Gross profit — new

 

$

552.6

 

$

546.2

 

$

6.4

 

1.2

%

Same-store gross profit — new

 

$

513.9

 

$

538.4

 

$

(24.5)

 

(4.6)

%

Average gross profit per new vehicle retailed

 

$

2,949

 

$

2,922

 

$

27

 

0.9

%

Same-store average gross profit per new vehicle retailed

 

$

2,924

 

$

2,925

 

$

(1)

 

(0.0)

%

Gross margin % — new

 

 

7.7

%  

 

7.6

%  

 

0.1

%  

1.3

%

Same-store gross margin % — new

 

 

7.6

%  

 

7.6

%  

 

 —

%  

 —

%

 

Units

 

Retail unit sales of new vehicles increased from 2016 to 2017 due to an 8,829 unit increase from net dealership acquisitions, offset by an 8,361 unit, or 4.5%, decrease in same-store new retail unit sales. New units decreased 2.0% in the U.S. and increased 3.7% internationally. Same-store units decreased 4.0% in the U.S., primarily due to a decline in premium and domestic brand sales. Same-store units decreased 5.5% internationally, primarily due to a decline in sales in Germany that offset the strength of our premium brand sales in the U.K. 

 

Revenues

 

New vehicle retail sales revenue increased from 2016 to 2017 due to a $357.5 million increase from net dealership acquisitions, offset by a $346.0 million, or 4.9%, decrease in same-store revenues. Excluding $208.5 million of negative foreign currency fluctuations, same-store new retail revenue decreased 1.9%. The same-store revenue decrease is due to a decrease in same-store new retail unit sales, which decreased revenue by $321.6 million, coupled with a  $139 per unit decrease in comparative average selling prices (including a $1,187 per unit decrease attributable to negative foreign currency fluctuations), which decreased revenue by $24.4 million.

 

Gross Profit

 

Retail gross profit from new vehicle sales increased from 2016 to 2017 due to a $30.9 million increase from net dealership acquisitions, offset by a $24.5 million, or 4.6%, decrease in same-store gross profit. Excluding $16.9 million of negative 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 $24.4 million, coupled with a per unit decrease in the average gross profit per new vehicle retailed (including a $96 per unit decrease attributable to negative foreign currency fluctuations), which decreased gross profit by $0.1 million.

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