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SEC Filings

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

We believe that changes in aggregate floor plan liabilities are typically linked to changes in vehicle inventory, and therefore, are an integral part of understanding changes in our working capital and operating cash flow. As a result, we prepare the following reconciliation to highlight our operating cash flows with all changes in vehicle floor plan being classified as an operating activity for informational purposes:

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

(In millions)

    

2017

    

2016

 

Net cash from continuing operating activities as reported

 

$

466.8

 

$

463.3

 

Floor plan notes payable — non-trade as reported

 

 

155.2

 

 

12.8

 

Net cash from continuing operating activities including all floor plan notes payable

 

$

622.0

 

$

476.1

 

 

Cash Flows from Continuing Investing Activities

 

Cash used in continuing investing activities was $855.6 million and $785.7 million during the nine months ended September 30, 2017 and 2016, respectively. Cash flows from continuing investing activities consist primarily of cash used for capital expenditures and net expenditures for acquisitions and other investments. Capital expenditures were $180.1 million and $171.7 million during the nine months ended September 30, 2017 and 2016, respectively. Capital expenditures relate primarily to improvements to our existing dealership facilities, the construction of new facilities, the acquisition of the property or buildings associated with existing leased facilities, and the acquisition of land for future development. We currently expect to finance our retail automotive segment and retail commercial truck segment capital expenditures with operating cash flows or borrowings under our U.S. or U.K. credit facilities. Cash used in acquisitions and other investments, net of cash acquired, was $449.7 million and $106.0 million during the nine months ended September 30, 2017 and 2016, respectively, and included cash used to repay sellers floor plan liabilities in such business acquisitions of $101.6 million and $59.1 million, respectively. Cash used to acquire additional ownership interests in PTL was $239.1 million and $498.5 million during the nine months ended September 30, 2017 and 2016, respectively.

   

Cash Flows from Continuing Financing Activities

 

Cash provided by continuing financing activities was $397.1 million and $365.7 million during the nine months ended September 30, 2017 and 2016, respectively. Cash flows from continuing financing activities generally include net borrowings or repayments of long-term debt, issuance of long-term debt, repurchases of common stock, net borrowings or repayments of floor plan notes payable non-trade, payment of debt issuance costs, and dividends.

 

We had net borrowings of long-term debt of $50.3 million and $119.3 million during the nine months ended September 30, 2017 and 2016, respectively. We issued $300.0 million of senior subordinated notes during the nine months ended September 30, 2017 and paid $4.0 million of debt issuance costs in conjunction with the issuance of these notes. We issued $500.0 million of senior subordinated notes during the nine months ended September 30, 2016 and paid $6.7 million of debt issuance costs in conjunction with the issuance of these notes. We had net borrowings of floor plan notes payable non-trade of $155.2 million and $12.8 million during the nine months ended September 30, 2017 and 2016, respectively. We repurchased common stock for a total of $18.5 million and $173.6 million during the nine months ended September 30, 2017 and 2016, respectively. We also paid cash dividends to our stockholders of $80.1 million and $70.3 million during the nine months ended September 30, 2017 and 2016, respectively.

 

Cash Flows from Discontinued Operations

 

Cash flows relating to discontinued operations are not currently considered, nor are they expected to be, material to our liquidity or our capital resources. Management does not believe that there are any material past, present or upcoming cash transactions relating to discontinued operations.

 

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