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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

 

 

381,761

 

 

345,122

 

 

36,639

 

10.6

%

Total same-store retail unit sales

 

 

331,458

 

 

340,273

 

 

(8,815)

 

(2.6)

%

Finance and insurance revenue

 

$

436.6

 

$

373.1

 

$

63.5

 

17.0

%

Same-store finance and insurance revenue

 

$

385.7

 

$

369.2

 

$

16.5

 

4.5

%

Finance and insurance revenue per unit

 

$

1,144

 

$

1,081

 

$

63

 

5.8

%

Same-store finance and insurance revenue per unit

 

$

1,164

 

$

1,085

 

$

79

 

7.3

%

 

Finance and insurance revenue increased from 2016 to 2017 due to a $47.0 million increase from net dealership acquisitions, coupled with a $16.5 million, or 4.5%, increase in same-store revenues. Excluding $12.7 million of negative foreign currency fluctuations, same-store finance and insurance revenue increased 7.9%. The same-store revenue increase is due to a $79 per unit increase in comparative average selling prices (offset by a $38 per unit decrease attributable to negative foreign currency fluctuations), which increased revenue by $26.1 million, offset by the decrease in same-store retail unit sales, which decreased revenue by $9.6 million. We believe the increase in same-store finance and insurance revenue per unit, particularly in the U.S., 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

 

$

1,540.1

 

$

1,466.5

 

$

73.6

 

5.0

%

Same-store service and parts revenue

 

$

1,467.1

 

$

1,455.8

 

$

11.3

 

0.8

%

Gross profit — service and parts

 

$

911.4

 

$

851.0

 

$

60.4

 

7.1

%

Same-store service and parts gross profit

 

$

863.2

 

$

844.3

 

$

18.9

 

2.2

%

Gross margin % — service and parts

 

 

59.2

%  

 

58.0

%  

 

1.2

%

2.1

%

Same-store service and parts gross margin %

 

 

58.8

%  

 

58.0

%  

 

0.8

%

1.4

%

 

Revenues

 

Service and parts revenue increased from 2016 to 2017, with an increase of 6.8% internationally and 4.2% in the U.S. The overall increase in service and parts revenue is due to a $62.3 million increase from net dealership acquisitions, coupled with an $11.3 million, or 0.8%, increase in same-store revenues during the period. Excluding $32.9 million of negative foreign currency fluctuations, same-store service and parts revenue increased 3.0%. The increase in same-store revenue is due to a $32.9 million, or 9.6%, increase in warranty revenue, offset by a $21.1 million, or 2.1%, decrease in customer pay revenue, and a $0.5 million, or 0.4%, decrease in vehicle preparation and body shop revenue.

 

Gross Profit

 

Service and parts gross profit increased from 2016 to 2017 due to a $41.5 million increase from net dealership acquisitions, coupled with an $18.9 million, or 2.2%, increase in same-store gross profit during the period. Excluding $20.2 million of negative foreign currency fluctuations, same-store gross profit increased 4.6%. The same-store gross profit increase is due to a 0.8% increase in gross margin, which increased gross profit by $12.3 million, coupled with the increase in same-store revenues, which increased gross profit by $6.6 million. The same-store gross profit increase is due to a $22.9 million, or 13.1%, increase in warranty gross profit, and a  $1.6 million, or 0.8%, increase in vehicle preparation and body shop gross profit, offset by a $5.6 million, or 1.2%, decrease in customer pay gross profit.

 

 

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