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SEC Filings

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

PENSKE AUTOMOTIVE GROUP, INC.

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

    

2017

    

2016

 

 

 

(Unaudited)

 

 

 

(In millions)

 

Operating Activities:

 

 

 

 

 

 

 

Net income

 

$

284.2

 

$

263.7

 

Adjustments to reconcile net income to net cash from continuing operating activities:

 

 

 

 

 

 

 

Depreciation

 

 

70.0

 

 

66.8

 

Earnings of equity method investments

 

 

(53.1)

 

 

(37.3)

 

Loss from discontinued operations, net of tax

 

 

0.3

 

 

1.1

 

Deferred income taxes

 

 

204.9

 

 

96.4

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

 

(48.7)

 

 

(67.1)

 

Inventories

 

 

(226.7)

 

 

246.6

 

Floor plan notes payable

 

 

137.8

 

 

(174.1)

 

Accounts payable and accrued expenses

 

 

98.4

 

 

15.5

 

Other

 

 

(0.3)

 

 

51.7

 

Net cash provided by continuing operating activities

 

 

466.8

 

 

463.3

 

Investing Activities:

 

 

 

 

 

 

 

Purchase of equipment and improvements

 

 

(180.1)

 

 

(171.7)

 

Acquisition of additional ownership interest in Penske Truck Leasing

 

 

(239.1)

 

 

(498.5)

 

Acquisitions net, including repayment of sellers’ floor plan notes payable of $101.6 and $59.1, respectively

 

 

(449.7)

 

 

(106.0)

 

Other

 

 

13.3

 

 

(9.5)

 

Net cash used in continuing investing activities

 

 

(855.6)

 

 

(785.7)

 

Financing Activities:

 

 

 

 

 

 

 

Proceeds from borrowings under U.S. credit agreement revolving credit line

 

 

1,621.0

 

 

1,172.5

 

Repayments under U.S. credit agreement revolving credit line

 

 

(1,645.0)

 

 

(1,127.5)

 

Issuance of 3.75% senior subordinated notes

 

 

300.0

 

 

 —

 

Issuance of 5.50% senior subordinated notes

 

 

 —

 

 

500.0

 

Net borrowings of other long-term debt

 

 

74.3

 

 

74.3

 

Net borrowings of floor plan notes payable — non-trade

 

 

155.2

 

 

12.8

 

Payment of debt issuance costs

 

 

(4.0)

 

 

(6.7)

 

Repurchases of common stock

 

 

(18.5)

 

 

(173.6)

 

Dividends

 

 

(80.1)

 

 

(70.3)

 

Other

 

 

(5.8)

 

 

(15.8)

 

Net cash provided by continuing financing activities

 

 

397.1

 

 

365.7

 

Discontinued operations:

 

 

 

 

 

 

 

Net cash provided by discontinued operating activities

 

 

0.5

 

 

1.3

 

Net cash provided by discontinued investing activities

 

 

2.4

 

 

1.7

 

Net cash used in discontinued financing activities

 

 

(0.2)

 

 

 —

 

Net cash provided by discontinued operations

 

 

2.7

 

 

3.0

 

Effect of exchange rate changes on cash and cash equivalents

 

 

2.2

 

 

(19.3)

 

Net change in cash and cash equivalents

 

 

13.2

 

 

27.0

 

Cash and cash equivalents, beginning of period

 

 

24.0

 

 

62.4

 

Cash and cash equivalents, end of period

 

$

37.2

 

$

89.4

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

 

Cash paid for:

 

 

 

 

 

 

 

Interest

 

$

102.2

 

$

76.2

 

Income taxes

 

 

21.3

 

 

37.2

 

Seller financed/assumed debt

 

 

3.8

 

 

 —

 

Non cash activities:

 

 

 

 

 

 

 

Consideration transferred through common stock issuance

 

$

32.4

 

$

 —

 

Contingent consideration

 

 

20.0

 

 

 —

 

 

See Notes to Consolidated Condensed Financial Statements

 

6