Penske Automotive     Print Page | Close Window

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

 

 

194,384

 

 

158,213

 

 

36,171

 

22.9

%

Same-store used retail unit sales

 

 

155,732

 

 

156,186

 

 

(454)

 

(0.3)

%

Used retail sales revenue

 

$

4,850.6

 

$

4,331.5

 

$

519.1

 

12.0

%

Same-store used retail sales revenue

 

$

4,209.2

 

$

4,273.0

 

$

(63.8)

 

(1.5)

%

Used retail sales revenue per unit

 

$

24,954

 

$

27,377

 

$

(2,423)

 

(8.9)

%

Same-store used retail sales revenue per unit

 

$

27,028

 

$

27,359

 

$

(331)

 

(1.2)

%

Gross profit — used

 

$

282.4

 

$

257.8

 

$

24.6

 

9.5

%

Same-store gross profit — used

 

$

234.7

 

$

255.1

 

$

(20.4)

 

(8.0)

%

Average gross profit per used vehicle retailed

 

$

1,453

 

$

1,629

 

$

(176)

 

(10.8)

%

Same-store average gross profit per used vehicle retailed

 

$

1,507

 

$

1,634

 

$

(127)

 

(7.8)

%

Gross margin % — used

 

 

5.8

%  

 

6.0

%  

 

(0.2)

%

(3.3)

%

Same-store gross margin % — used

 

 

5.6

%  

 

6.0

%  

 

(0.4)

%

(6.7)

%

 

Units

 

Retail unit sales of used vehicles increased from 2016 to 2017 due to a 36,625 unit increase from net dealership acquisitions, offset by  a 454 unit, or 0.3%, decrease in same-store used retail unit sales. Used units increased 39.7% internationally and increased 10.9% 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 1.8% internationally and decreased 1.7% in the U.S.

 

Revenues

 

Used vehicle retail sales revenue increased from 2016 to 2017 due to a $582.9 million increase from net dealership acquisitions, offset by a $63.8 million, or 1.5%, decrease in same-store revenues. Excluding $169.9 million of negative foreign currency fluctuations, same-store used retail revenue increased 2.5%. The same-store revenue decrease is primarily due to a $331 per unit decrease in comparative average selling prices (including a $1,091 per unit decrease attributable to negative foreign currency fluctuations), which decreased revenue by $51.5 million, coupled with a decrease in same-store used retail unit sales, which decreased revenue by $12.3 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 $2,019.

 

Gross Profit

 

Retail gross profit from used vehicle sales increased from 2016 to 2017 due to a $45.0 million increase from net dealership acquisitions, offset by a $20.4 million, or 8.0%,  decrease in same-store gross profit. Excluding $8.5 million of negative foreign currency fluctuations, same-store gross profit decreased 4.7%. The decrease in same-store gross profit is due to a $127 per unit decrease in average gross profit per used vehicle retailed (including a  $54 per unit decrease attributable to negative foreign currency fluctuations), which decreased gross profit by $19.7 million, coupled with a decrease in same-store used retail unit sales, which decreased gross profit by $0.7 million. 

 

47