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Penske Automotive Reports Record Second Quarter And Record First-Half 2018 Results

BLOOMFIELD HILLS, Mich., July 26, 2018 /PRNewswire/ --





Second Quarter 2018



Six Months 2018





  • Revenue Increases 10.3% to $5.9 Billion
  • Income from Continuing Operations Attributable to Common Shareholders Increases 27.0% to $134.6 Million
  • Earnings Per Share from Continuing Operations Attributable to Common Shareholders Increases 28.5% to $1.58


  • Revenue Increases 11.7% to $11.7 Billion
  • Income from Continuing Operations Attributable to Common Shareholders Increases 28.2% to $242.6 Million
  • Earnings Per Share from Continuing Operations Attributable to Common Shareholders Increases 29.1% to $2.84

Penske Automotive Group, Inc. (NYSE: PAG), an international transportation services company consisting of franchised retail automotive dealerships, stand-alone used vehicle supercenters, heavy and medium duty retail truck dealerships, and distribution of commercial trucks and power systems, today announced record second quarter and record first-half 2018 results. For the three months ended June 30, 2018, income from continuing operations attributable to common shareholders increased 27.0% to $134.6 million, and related earnings per share increased 28.5% to $1.58 when compared to the same period last year. Retail unit sales increased 3.1% to 134,214. Total revenue increased 10.3% to $5.9 billion. Excluding foreign exchange, total revenue increased 7.4%, while same-store retail revenue increased 5.8%. Foreign exchange rates positively impacted earnings per share attributable to common shareholders by $0.03.  As a result of tax reform enacted in 2017, the company's effective tax rate in the second quarter of 2018 was 23.3% compared to 32.0% in the second quarter of 2017.

"Our business produced outstanding results in the second quarter, demonstrating the strength of our diversified transportation services model," said Penske Automotive Group Chairman Roger S. Penske. "The retail automotive dealership business remains strong, generating same-store increases in new, used, and finance & insurance gross profit per unit retailed. I am particularly pleased with the performance of the stand-alone used vehicle supercenter operations which retailed 18,832 vehicles, generated $346.7 million in revenue, and returned over 4.3% on sales during the quarter. Contributing to the company's record second quarter was a 45.5% same-store retail revenue increase in the company's North American retail commercial truck business and our investment in Penske Truck Leasing."

For the six months ended June 30, 2018, total revenue increased 11.7% to $11.7 billion, with an 8.3% increase in same-store retail revenue. Income from continuing operations attributable to common shareholders increased 28.2% to $242.6 million and related earnings per share increased 29.1% to $2.84 when compared to the same period last year. Excluding foreign exchange, total revenue increased 7.3%, while same-store retail revenue increased 3.9%. Foreign exchange rates positively impacted earnings per share attributable to common shareholders by $0.10.  As a result of tax reform enacted in 2017, the company's effective tax rate for the six months ended June 30, 2018 was 24.2% compared to 32.4% for the six months ended June 30, 2017.

Automotive Retail Highlights of the Second Quarter

  • Same-Store Retail Unit Sales +1.6% to 126,484
    • New unit retail sales +0.1%
    • Used unit retail sales +3.1%
  • Same-Store Retail Revenue +8.8%; Excluding Foreign Exchange +5.8%
    • New +7.3%; Used +11.7%; Finance & Insurance +9.7%; Service and Parts +6.0%
  • Same-Store Average Gross Profit Per Unit
    • New $3,127, +$32/unit; Gross Margin 7.5%, -40 basis points
    • Used $1,574, +$151/unit; Gross Margin 5.8%, +10 basis points
    • Finance & Insurance $1,247, +$90/unit
  • Same-Store Average Variable Gross Profit Per Unit $3,562, +$174
    • Excluding Foreign Exchange, $3,464, +$76/unit

Retail Commercial Truck Operations
Penske Automotive Group operates twenty-one medium and heavy-duty truck dealership locations in the U.S. and Canada offering primarily Freightliner and Western Star brands. For the three months ended June 30, 2018, the company retailed 2,504 units, generated $338.8 million in revenue and $52.4 million in gross profit. For the six months ended June 30, 2018, the company retailed 4,609 units, generated $631.2 million in revenue and $99.0 million in gross profit. Same-store revenue increased 45.5% and 41.5% for the three and six months ended June 30, 2018, respectively.

Penske Truck Leasing
Penske Truck Leasing Co., L.P. ("PTL") is a leading provider of full-service truck leasing, truck rental, contract maintenance, and logistics services. During the third quarter of 2017, the company increased its ownership interests in PTL by 5.5%, bringing our total ownership interest in PTL to 28.9%. The company accounts for its ownership interest in PTL using the equity method of accounting. For the three and six months ended June 30, 2018, the company recorded $35.0 million and $51.0 million in earnings from this investment compared to $24.9 million and $36.8 million for the same periods last year, respectively.

Dividend and Share Repurchases
On July 18, 2018, the company announced that its Board of Directors increased the dividend to its common stock shareholders to $0.36 per share, the twenty-ninth consecutive increase in the quarterly dividend.

During the three months ended June 30, 2018, the company repurchased 119,608 shares for $5.8 million, or an average of $48.61 per share.  For the six months ended June 30, 2018, the company repurchased 1,252,624 shares for $55.8 million. Approximately $150.0 million remains available to repurchase shares under the company's existing share repurchase authorization.

Conference Call
Penske Automotive Group will host a conference call discussing financial results relating to the second quarter of 2018 on Thursday, July 26, 2018, at 2:00 p.m.Eastern Daylight Time. To listen to the conference call, participants must dial (800) 230‑1092 – [International, please dial (612) 234‑9959]. The call will also be simultaneously broadcast over the Internet through the Investor Relations section of the Penske Automotive Group website. Additionally, an investor presentation relating to the second quarter 2018 financial results has been posted to the company's website. To access the presentation or to listen to the company's webcast, please refer to www.penskeautomotive.com.

About Penske Automotive
Penske Automotive Group, Inc., (NYSE:PAG) headquartered in Bloomfield Hills, Michigan, is an international transportation services company that operates automotive and commercial truck dealerships principally in the United States, Canada, and Western Europe, and distributes commercial vehicles, diesel engines, gas engines, power systems and related parts and services principally in Australia and New Zealand. PAG employs more than 26,000 people worldwide and is a member of the Fortune 500 and Russell 2000, and is ranked among the World's Most Admired Companies by Fortune Magazine. For additional information, visit the company's website at www.penskeautomotive.com.

Non-GAAP Financial Measures
This release contains certain non-GAAP financial measures as defined under SEC rules, such as earnings before interest, taxes, depreciation and amortization ("EBITDA"). The company has reconciled these measures to the most directly comparable GAAP measures in the release. The company believes that these widely accepted measures of operating profitability improve the transparency of the company's disclosures and provide a meaningful presentation of the company's results from its core business operations excluding the impact of items not related to the company's ongoing core business operations, and improve the period-to-period comparability of the company's results from its core business operations. These non-GAAP financial measures are not substitutes for GAAP financial results, and should only be considered in conjunction with the company's financial information that is presented in accordance with GAAP.

Caution Concerning Forward Looking Statements
Statements in this press release may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.'s future sales and earnings potential. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others: economic conditions generally, conditions in the credit markets and changes in interest rates and foreign currency exchange rates, changes in tariff rates, adverse conditions affecting a particular manufacturer, including the adverse impact to the vehicle and parts supply chain due to natural disasters such as the recent hurricanes, recall or other disruptions that interrupt the supply of vehicles or parts to us, changes in consumer credit availability, the outcome of legal and administrative matters, and other factors over which management has limited control. These forward-looking statements should be evaluated together with additional information about Penske Automotive Group's business, markets, conditions and other uncertainties, which could affect Penske Automotive Group's future performance. These risks and uncertainties are addressed in Penske Automotive Group's Form 10‑K for the year ended December 31, 2017, and its other filings with the Securities and Exchange Commission ("SEC"). This press release speaks only as of its date, and Penske Automotive Group disclaims any duty to update the information herein.

Find a vehicle: http://www.penskecars.com
Engage Penske Automotive: http://www.penskesocial.com
Like Penske Automotive on Facebook: https://facebook.com/penskecars
Follow Penske Automotive on Twitter: https://twitter.com/penskecars
Visit Penske Automotive on YouTube: http://www.youtube.com/penskecars

 

Inquiries should contact:


J.D. Carlson
Executive Vice President and
Chief Financial Officer
Penske Automotive Group, Inc.
248-648-2810
jcarlson@penskeautomotive.com

Anthony R. Pordon
Executive Vice President Investor Relations
and Corporate Development
Penske Automotive Group, Inc.
248-648-2540
tpordon@penskeautomotive.com

 


PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Statements of Income

Three Months Ended June 30

(Amounts In Millions, Except Per Share Data)

(Unaudited)




Three Months Ended









June 30,


2018 vs. 2017



2018


2017


Change


% Change

Revenue


$

5,940.3


$

5,383.4


$

556.9


10.3

%

Cost of Sales



5,050.5



4,566.1



484.4


10.6

%

Gross Profit


$

889.8


$

817.3


$

72.5


8.9

%

SG&A Expenses



675.4



622.0



53.4


8.6

%

Depreciation



25.7



23.3



2.4


10.3

%

Operating Income


$

188.7


$

172.0


$

16.7


9.7

%

Floor Plan Interest Expense



(19.9)



(15.5)



4.4


28.4

%

Other Interest Expense



(28.6)



(26.4)



2.2


8.3

%

Equity in Earnings of Affiliates



36.0



26.8



9.2


34.3

%

Income from Continuing Operations Before Income Taxes


$

176.2


$

156.9


$

19.3


12.3

%

Income Taxes



(41.0)



(50.2)



(9.2)


(18.3)

%

Income from Continuing Operations


$

135.2


$

106.7


$

28.5


26.7

%

Income from Discontinued Operations, net of tax





0.2



(0.2)


nm


Net Income


$

135.2


$

106.9


$

28.3


26.5

%

Less: Income Attributable to Non-Controlling Interests



0.6



0.7



(0.1)


nm


Net Income Attributable to Common Shareholders


$

134.6


$

106.2


$

28.4


26.7

%














Amounts Attributable to Common Shareholders:













Reported Income from Continuing Operations


$

135.2


$

106.7


$

28.5


26.7

%

Less: Income Attributable to Non-Controlling Interests



0.6



0.7



(0.1)


nm


Income from Continuing Operations, net of tax


$

134.6


$

106.0


$

28.6


27.0

%

Income from Discontinued Operations, net of tax





0.2



(0.2)


nm


Net Income Attributable to Common Shareholders


$

134.6


$

106.2


$

28.4


26.7

%

Income from Continuing Operations Per Share


$

1.58


$

1.23


$

0.35


28.5

%

Income Per Share


$

1.58


$

1.23


$

0.35


28.5

%

Weighted Average Shares Outstanding



85.0



86.1



(1.1)


(1.3)

%














nm – not meaningful













 

 

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Statements of Income

Six Months Ended June 30

(Amounts In Millions, Except Per Share Data)

(Unaudited)




Six Months Ended









June 30,


2018 vs. 2017



2018


2017


Change


% Change

Revenue


$

11,687.2


$

10,464.5


$

1,222.7


11.7

%

Cost of Sales



9,933.0



8,872.9



1,060.1


11.9

%

Gross Profit


$

1,754.2


$

1,591.6


$

162.6


10.2

%

SG&A Expenses



1,338.5



1,223.7



114.8


9.4

%

Depreciation



51.3



45.7



5.6


12.3

%

Operating Income


$

364.4


$

322.2


$

42.2


13.1

%

Floor Plan Interest Expense



(38.8)



(29.2)



9.6


32.9

%

Other Interest Expense



(58.4)



(51.4)



7.0


13.6

%

Equity in Earnings of Affiliates



53.3



40.0



13.3


33.3

%

Income from Continuing Operations Before Income Taxes


$

320.5


$

281.6


$

38.9


13.8

%

Income Taxes



(77.6)



(91.3)



(13.7)


(15.0)

%

Income from Continuing Operations


$

242.9


$

190.3


$

52.6


27.6

%

Income (Loss) from Discontinued Operations, net of tax



0.1



(0.4)



0.5


nm


Net Income


$

243.0


$

189.9


$

53.1


28.0

%

Less: Income Attributable to Non-Controlling Interests



0.3



1.1



(0.8)


nm


Net Income Attributable to Common Shareholders


$

242.7


$

188.8


$

53.9


28.5

%














Amounts Attributable to Common Shareholders:













Reported Income from Continuing Operations


$

242.9


$

190.3


$

52.6


27.6

%

Less: Income Attributable to Non-Controlling Interests



0.3



1.1



(0.8)


nm


Income from Continuing Operations, net of tax


$

242.6


$

189.2


$

53.4


28.2

%

Income (Loss) from Discontinued Operations, net of tax



0.1



(0.4)



0.5


nm


Net Income Attributable to Common Shareholders


$

242.7


$

188.8


$

53.9


28.5

%

Income from Continuing Operations Per Share


$

2.84


$

2.20


$

0.64


29.1

%

Income Per Share


$

2.84


$

2.20


$

0.64


29.1

%

Weighted Average Shares Outstanding



85.5



85.9



(0.4)


(0.5)

%














nm – not meaningful













 

 

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Balance Sheets

(Amounts In Millions)

(Unaudited)




June 30,


December 31,



2018


2017

Assets:







Cash and Cash Equivalents


$

45.8


$

45.7

Accounts Receivable, Net



919.6



954.9

Inventories



3,895.1



3,944.1

Other Current Assets



97.5



81.8

Total Current Assets



4,958.0



5,026.5

Property and Equipment, Net



2,144.9



2,108.6

Intangibles



2,174.8



2,134.5

Other Long-Term Assets



1,292.8



1,271.0

Total Assets


$

10,570.5


$

10,540.6








Liabilities and Equity:







Floor Plan Notes Payable


$

2,278.0


$

2,343.2

Floor Plan Notes Payable – Non-Trade



1,325.7



1,418.6

Accounts Payable



680.0



641.6

Accrued Expenses



529.7



523.5

Current Portion Long-Term Debt



92.3



72.8

Liabilities Held for Sale



0.7



0.7

Total Current Liabilities



4,906.4



5,000.4

Long-Term Debt



2,059.6



2,090.4

Other Long-Term Liabilities



1,078.7



1,021.8

Total Liabilities



8,044.7



8,112.6

Equity



2,525.8



2,428.0

Total Liabilities and Equity


$

10,570.5


$

10,540.6








Supplemental Balance Sheet Information







New vehicle days' supply



72



67

Used vehicle days' supply



45



55

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Operations

Selected Data

(Unaudited)




Three Months Ended


Six Months Ended




June 30,


June 30,




2018


2017


2018


2017


Geographic Revenue Mix:














North America



55.4

%


60.3

%


54.2

%


58.4

%

U.K.



35.5

%


32.0

%


36.8

%


33.9

%

Other International



9.1

%


7.7

%


9.0

%


7.7

%

Total



100.0

%


100.0

%


100.0

%


100.0

%















Revenue: (Amounts in Millions)














Retail Automotive


$

5,455.5


$

5,040.7


$

10,751.5


$

9,797.1


Retail Commercial Trucks



338.8



228.5



631.2



440.2


Commercial Vehicles Australia/Power Systems and Other



146.0



114.2



304.5



227.2


Total


$

5,940.3


$

5,383.4


$

11,687.2


$

10,464.5
















Gross Profit: (Amounts in Millions)














Retail Automotive


$

798.0


$

746.0


$

1,576.3


$

1,454.3


Retail Commercial Trucks



52.4



40.0



99.0



76.4


Commercial Vehicles Australia/Power Systems and Other



39.4



31.3



78.9



60.9


Total


$

889.8


$

817.3


$

1,754.2


$

1,591.6
















Gross Margin:














Retail Automotive



14.6

%


14.8

%


14.7

%


14.8

%

Retail Commercial Trucks



15.5

%


17.5

%


15.7

%


17.4

%

Commercial Vehicles Australia/Power Systems and Other



27.0

%


27.4

%


25.9

%


26.8

%

Total



15.0

%


15.2

%


15.0

%


15.2

%














Three Months Ended


Six Months Ended




June 30,


June 30,















2018


2017


2018


2017


Operating Items as a Percentage of Revenue:











Gross Profit


15.0

%

15.2

%


15.0

%

15.2

%

Selling, General and Administrative Expenses


11.4

%

11.6

%


11.5

%

11.7

%

Operating Income


3.2

%

3.2

%


3.1

%

3.1

%

Income from Continuing Operations Before Income Taxes


3.0

%

2.9

%


2.7

%

2.7

%












Operating Items as a Percentage of Total Gross Profit:











Selling, General and Administrative Expenses


75.9

%

76.1

%


76.3

%

76.9

%

Operating Income


21.2

%

21.0

%


20.8

%

20.2

%

















Three Months Ended

Six Months Ended



June 30,

June 30,















(Amounts in Millions)


2018


2017


2018


2017
















EBITDA*


$

230.5


$

206.6


$

430.2


$

378.7


Floorplan Credits


$

10.3


$

10.1


$

18.8


$

18.4


Rent Expense


$

59.0


$

55.4


$

116.9


$

108.8


Capital Expenditures


$

54.1


$

76.5


$

118.8


$

113.4


Stock Repurchases


$

5.8


$

5.8


$

55.8


$

8.5


_________________________

* See the following Non-GAAP reconciliation table.


 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

Selected Data – Revenue and Gross Profit Mix

(Unaudited)




Three Months Ended


Six Months Ended




June 30,


June 30,




2018


2017


2018


2017


Retail Automotive Revenue Mix:










Premium:










BMW / MINI


23

%

23

%

22

%

23

%

Audi


13

%

14

%

14

%

14

%

Mercedes-Benz


9

%

10

%

9

%

10

%

Land Rover / Jaguar


9

%

8

%

9

%

8

%

Porsche


6

%

6

%

6

%

6

%

Ferrari / Maserati


3

%

3

%

3

%

3

%

Lexus


3

%

3

%

3

%

3

%

Acura


1

%

1

%

1

%

1

%

Bentley


1

%

1

%

1

%

1

%

Others


2

%

1

%

2

%

1

%

Total Premium


70

%

70

%

70

%

70

%

Volume Non-U.S.:










Toyota


9

%

10

%

9

%

10

%

Honda


7

%

7

%

6

%

7

%

Volkswagen


4

%

3

%

4

%

4

%

Nissan


1

%

1

%

1

%

1

%

Others


1

%

2

%

2

%

2

%

Total Volume Non-U.S.


22

%

23

%

22

%

24

%

U.S.:










General Motors / Chrysler / Ford


2

%

3

%

2

%

3

%

Stand-Alone Used


6

%

4

%

6

%

3

%

Total


100

%

100

%

100

%

100

%











Retail Automotive Geographic Revenue Mix:










U.S.


54

%

60

%

53

%

58

%

U.K.


39

%

34

%

40

%

36

%

Other International


7

%

6

%

7

%

6

%

Total


100

%

100

%

100

%

100

%











Retail Automotive Geographic Gross Profit Mix:










U.S.


59

%

64

%

58

%

62

%

U.K.


35

%

31

%

36

%

32

%

Other International


6

%

5

%

6

%

6

%

Total


100

%

100

%

100

%

100

%

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

Selected Data – Three Months Ended June 30

(Unaudited)




Three Months Ended









June 30,


2018 vs. 2017



2018


2017


Change


% Change

Retail Automotive Units:













New Retail



61,071



63,919



(2,848)


(4.5)

%

Used Retail



73,143



66,208



6,935


10.5

%

Total



134,214



130,127



4,087


3.1

%














Retail Automotive Revenue: (Amounts in Millions)













New Vehicles


$

2,528.6


$

2,401.7


$

126.9


5.3

%

Used Vehicles



1,896.9



1,640.1



256.8


15.7

%

Finance and Insurance, Net



162.9



147.2



15.7


10.7

%

Service and Parts



547.8



520.3



27.5


5.3

%

Fleet and Wholesale



319.3



331.4



(12.1)


(3.7)

%

Total Revenue


$

5,455.5


$

5,040.7


$

414.8


8.2

%














Retail Automotive Gross Profit: (Amounts in Millions)













New Vehicles


$

189.8


$

190.3


$

(0.5)


(0.3)

%

Used Vehicles



112.5



93.8



18.7


19.9

%

Finance and Insurance, Net



162.9



147.2



15.7


10.7

%

Service and Parts



328.2



309.7



18.5


6.0

%

Fleet and Wholesale



4.6



5.0



(0.4)


(8.0)

%

Total Gross Profit


$

798.0


$

746.0


$

52.0


7.0

%














Retail Automotive Revenue Per Vehicle Retailed:













New Vehicles


$

41,404


$

37,575


$

3,829


10.2

%

Used Vehicles



25,934



24,772



1,162


4.7

%














Retail Automotive Gross Profit Per Vehicle Retailed:













New Vehicles


$

3,109


$

2,977


$

132


4.4

%

Used Vehicles



1,538



1,416



122


8.6

%

Finance and Insurance



1,213



1,131



82


7.3

%

Total Variable Gross Profit Per Vehicle (1)



3,466



3,314



152


4.6

%














Retail Automotive Gross Margin:













New Vehicles



7.5

%


7.9

%


(0.4)

%

(5.1)

%

Used Vehicles



5.9

%


5.7

%


0.2

%

3.5

%

Service and Parts



59.9

%


59.5

%


0.4

%

0.7

%

Fleet and Wholesale



1.4

%


1.5

%


(0.1)

%

(6.7)

%

Total Gross Margin



14.6

%


14.8

%


(0.2)

%

(1.4)

%














Retail Automotive Revenue Mix Percentages:













New Vehicles



46.3

%


47.7

%


(1.4)

%

(2.9)

%

Used Vehicles



34.8

%


32.5

%


2.3

%

7.1

%

Finance and Insurance, Net



3.0

%


2.9

%


0.1

%

3.4

%

Service and Parts



10.0

%


10.3

%


(0.3)

%

(2.9)

%

Fleet and Wholesale



5.9

%


6.6

%


(0.7)

%

(10.6)

%

Total



100.0

%


100.0

%



















Retail Automotive Gross Profit Mix Percentages:













New Vehicles



23.8

%


25.5

%


(1.7)

%

(6.7)

%

Used Vehicles



14.1

%


12.6

%


1.5

%

11.9

%

Finance and Insurance, Net



20.4

%


19.7

%


0.7

%

3.6

%

Service and Parts



41.1

%


41.5

%


(0.4)

%

(1.0)

%

Fleet and Wholesale



0.6

%


0.7

%


(0.1)

%

(14.3)

%

Total



100.0

%


100.0

%






_________________________

(1)  Calculated by dividing the sum of new vehicle, used vehicle, and finance and insurance gross profit by total retail automotive unit sales.

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

Selected Data – Six Months Ended June 30

(Unaudited)




Six Months Ended









June 30,


2018 vs. 2017



2018


2017


Change


% Change

Retail Automotive Units:













New Retail



120,333



126,107



(5,774)


(4.6)

%

Used Retail



146,371



128,492



17,879


13.9

%

Total



266,704



254,599



12,105


4.8

%














Retail Automotive Revenue: (Amounts in Millions)













New Vehicles


$

4,975.4


$

4,709.1


$

266.3


5.7

%

Used Vehicles



3,763.7



3,181.1



582.6


18.3

%

Finance and Insurance, Net



323.7



284.6



39.1


13.7

%

Service and Parts



1,091.3



1,019.2



72.1


7.1

%

Fleet and Wholesale



597.4



603.1



(5.7)


(0.9)

%

Total Revenue


$

10,751.5


$

9,797.1


$

954.4


9.7

%














Retail Automotive Gross Profit: (Amounts in Millions)













New Vehicles


$

373.0


$

367.4


$

5.6


1.5

%

Used Vehicles



222.2



187.9



34.3


18.3

%

Finance and Insurance, Net



323.7



284.6



39.1


13.7

%

Service and Parts



646.3



603.4



42.9


7.1

%

Fleet and Wholesale



11.1



11.0



0.1


0.9

%

Total Gross Profit


$

1,576.3


$

1,454.3


$

122.0


8.4

%














Retail Automotive Revenue Per Vehicle Retailed:













New Vehicles


$

41,347


$

37,342


$

4,005


10.7

%

Used Vehicles



25,713



24,757



956


3.9

%














Retail Automotive Gross Profit Per Vehicle Retailed:













New Vehicles


$

3,100


$

2,913


$

187


6.4

%

Used Vehicles



1,518



1,463



55


3.8

%

Finance and Insurance



1,213



1,118



95


8.5

%

Total Variable Gross Profit Per Vehicle (1)



3,445



3,299



146


4.4

%














Retail Automotive Gross Margin:













New Vehicles



7.5

%


7.8

%


(0.3)

%

(3.8)

%

Used Vehicles



5.9

%


5.9

%


%

%

Service and Parts



59.2

%


59.2

%


%

%

Fleet and Wholesale



1.9

%


1.8

%


0.1

%

5.6

%

Total Gross Margin



14.7

%


14.8

%


(0.1)

%

(0.7)

%














Retail Automotive Revenue Mix Percentages:













New Vehicles



46.3

%


48.1

%


(1.8)

%

(3.7)

%

Used Vehicles



35.0

%


32.5

%


2.5

%

7.7

%

Finance and Insurance, Net



3.0

%


2.9

%


0.1

%

3.4

%

Service and Parts



10.2

%


10.4

%


(0.2)

%

(1.9)

%

Fleet and Wholesale



5.5

%


6.1

%


(0.6)

%

(9.8)

%

Total



100.0

%


100.0

%



















Retail Automotive Gross Profit Mix Percentages:













New Vehicles



23.7

%


25.3

%


(1.6)

%

(6.3)

%

Used Vehicles



14.1

%


12.9

%


1.2

%

9.3

%

Finance and Insurance, Net



20.5

%


19.6

%


0.9

%

4.6

%

Service and Parts



41.0

%


41.5

%


(0.5)

%

(1.2)

%

Fleet and Wholesale



0.7

%


0.7

%


%

%

Total



100.0

%


100.0

%






_________________________

(1)  Calculated by dividing the sum of new vehicle, used vehicle, and finance and insurance gross profit by total retail automotive unit sales.

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations Same-Store

Selected Data – Three Months June 30

(Unaudited)




Three Months Ended









June 30,


2018 vs. 2017



2018


2017


Change


% Change

Retail Automotive Same-Store Units:













New Retail



60,324



60,272



52


0.1

%

Used Retail



66,160



64,185



1,975


3.1

%

Total



126,484



124,457



2,027


1.6

%














Retail Automotive Same-Store Revenue: (Amounts in Millions)













New Vehicles


$

2,518.9


$

2,347.1


$

171.8


7.3

%

Used Vehicles



1,790.5



1,603.3



187.2


11.7

%

Finance and Insurance, Net



157.8



143.9



13.9


9.7

%

Service and Parts



542.9



512.2



30.7


6.0

%

Fleet and Wholesale



306.5



320.5



(14.0)


(4.4)

%

Total Revenue


$

5,316.6


$

4,927.0


$

389.6


7.9

%














Retail Automotive Same-Store Gross Profit: (Amounts in Millions)













New Vehicles


$

188.6


$

186.5


$

2.1


1.1

%

Used Vehicles



104.1



91.3



12.8


14.0

%

Finance and Insurance, Net



157.8



143.9



13.9


9.7

%

Service and Parts



322.9



303.9



19.0


6.3

%

Fleet and Wholesale



4.4



5.0



(0.6)


(12.0)

%

Total Gross Profit


$

777.8


$

730.6


$

47.2


6.5

%














Retail Automotive Same-Store Revenue Per Vehicle Retailed:













New Vehicles


$

41,757


$

38,942


$

2,815


7.2

%

Used Vehicles



27,064



24,980



2,084


8.3

%














Retail Automotive Same-Store Gross Profit Per Vehicle Retailed:













New Vehicles


$

3,127


$

3,095


$

32


1.0

%

Used Vehicles



1,574



1,423



151


10.6

%

Finance and Insurance



1,247



1,157



90


7.8

%

Total Variable Gross Profit Per Vehicle (1)



3,562



3,388



174


5.1

%