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SEC Filings

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

Gross Profit

 

Service and parts gross profit increased from 2016 to 2017 due to a $4.8 million increase from net dealership acquisitions, coupled with a $0.3 million increase in same-store gross profit. The same-store gross profit increase is due to a  0.5% increase in gross margin, which increased gross profit by $1.0 million, offset by the decrease in same-store revenues, which decreased gross profit by $0.7 million. The same-store gross profit increase is due to a $2.3 million, or 4.0%, increase in customer pay gross profit, offset by a $1.1 million, or 8.4%, decrease in warranty gross profit, and a $0.9 million, or 9.7%, decrease in body shop gross profit.

 

Commercial Vehicle Distribution Data

(In millions, except unit amounts)

 

Our commercial vehicle distribution business is comprised of our Penske Commercial Vehicles Australia business and our Penske Power Systems business. These businesses generated $363.4 million of revenue during the nine months ended September 30, 2017 compared to $312.7 million of revenue during the nine months ended September 30, 2016, an increase of 16.2%. Excluding $11.7 million of favorable foreign currency fluctuations, revenues increased 12.5%. These businesses generated $94.2 million of gross profit during the nine months ended September 30, 2017 compared to $85.0 million of gross profit during the nine months ended September 30, 2016, an increase of 10.8%. Excluding $3.0 million of favorable foreign currency fluctuations, gross profit increased 7.3%.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017 vs. 2016

 

Penske Commercial Vehicles Australia Data

    

2017

 

2016

 

Change

  

% Change

  

Vehicle and parts unit sales

 

 

1,013

 

 

779

 

 

234

 

30.0

%

Sales revenue

 

$

191.6

 

$

163.8

 

$

27.8

 

17.0

%

Gross profit

 

$

32.2

 

$

26.0

 

$

6.2

 

23.8

%

 

The increase in revenue and gross profit of PCV Australia from 2016 to 2017 is primarily attributable to an overall improvement in market conditions, as well as new business gained in military truck supply and service. In addition, the recent strengthening of the Australian Dollar versus the U.S. Dollar and British Pound, including the pricing impact on the products purchased by PCV Australia from these countries, has contributed to an improvement in gross margin.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017 vs. 2016

 

Penske Power Systems Data

    

2017

 

2016

 

Change

  

% Change

  

Sales revenue

 

$

171.8

 

$

148.9

 

$

22.9

 

15.4

%

Gross profit

 

$

62.0

 

$

59.0

 

$

3.0

 

5.1

%

 

The increase in revenue and gross profit of PPS from 2016 to 2017 is primarily attributable to continued new order growth when compared to the same period last year, as well as the addition of Western Star and MAN franchises at select branches, being appointed the sole franchisee for PCV Australia in several key markets, and improving economic conditions. 

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