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SEC Filings

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

Selling, General and Administrative Data

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017 vs. 2016

 

Selling, General and Administrative Data

    

2017

    

2016

    

Change

    

% Change

    

Personnel expense

 

$

1,073.3

 

$

989.9

 

$

83.4

 

8.4

%

Advertising expense

 

$

87.5

 

$

76.6

 

$

10.9

 

14.2

%

Rent & related expense

 

$

239.8

 

$

218.4

 

$

21.4

 

9.8

%

Other expense

 

$

469.2

 

$

437.9

 

$

31.3

 

7.1

%

Total SG&A expenses

 

$

1,869.8

 

$

1,722.8

 

$

147.0

 

8.5

%

Same store SG&A expenses

 

$

1,714.2

 

$

1,695.2

 

$

19.0

 

1.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel expense as % of gross profit

 

 

44.5

%  

 

44.2

%  

 

0.3

%  

0.7

%

Advertising expense as % of gross profit

 

 

3.6

%  

 

3.4

%  

 

0.2

%  

5.9

%

Rent & related expense as % of gross profit

 

 

9.9

%  

 

9.7

%  

 

0.2

%  

2.1

%

Other expense as % of gross profit

 

 

19.5

%  

 

19.6

%  

 

(0.1)

%  

(0.5)

%

Total SG&A expenses as % of gross profit

 

 

77.5

%  

 

76.9

%  

 

0.6

%  

0.8

%

Same store SG&A expenses as % of same store gross profit

 

 

77.5

%  

 

76.8

%  

 

0.7

%  

0.9

%

 

Selling, general and administrative expenses (“SG&A”) increased from 2016 to 2017 due to a $128.0 million increase from net acquisitions, coupled with a $19.0 million, or 1.1%, increase in same-store SG&A. Excluding the $41.6 million reduction related to foreign currency fluctuations, same-store SG&A increased 3.6%. The increase in SG&A is primarily due to an increase in variable personnel expenses as a result of the 7.8% increase in gross profit compared to the prior year. SG&A as a percentage of gross profit was 77.5%, an increase of 60  basis points compared to 76.9% in the prior year. SG&A expenses as a percentage of total revenue was 11.7% and 11.3% in the nine months ended September 30, 2017 and 2016, respectively.

 

Depreciation

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017 vs. 2016

 

 

    

2017

    

2016

    

Change

    

% Change

    

Depreciation

 

$

70.0

 

$

66.8

 

$

3.2

 

4.8

%

 

Depreciation increased from 2016 to 2017 due to a $3.4 million increase from net acquisitions, offset by a $0.2 million, or 0.3%, decrease in same-store depreciation. The overall increase is primarily related to our ongoing facility improvements and expansion programs.

 

Floor Plan Interest Expense

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017 vs. 2016

 

 

    

2017

    

2016

    

Change

    

% Change

    

Floor plan interest expense

 

$

45.6

 

$

37.8

 

$

7.8

 

20.6

%

 

Floor plan interest expense increased from 2016 to 2017 due to a $6.1 million, or 16.6%, increase in same-store floor plan interest expense, coupled with a $1.7 million increase from net dealership acquisitions. The overall increase is primarily due to increases in the amounts outstanding under floor plan arrangements, due in part to increased levels of inventory, and increases in applicable rates.

 

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