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Press Release

Penske Automotive Reports Third Quarter and Nine Month Results

Reports Record Third Quarter Adjusted Income from Continuing Operations

Adjusted Earnings per Share from Continuing Operations Rises to $0.60

BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--Nov. 2, 2012-- Penske Automotive Group, Inc. (NYSE:PAG):

       
Third Quarter 2012     Nine Months 2012
  • Revenue Increases 17.4% to $3.4 Billion
   
  • Revenue Increases 18.2% to $10.0 Billion
  • Same-store Retail Revenue Increases 11.7%
  • Same-store Retail Revenue Increases 9.6%
  • Adjusted Inc. from Continuing Operations Increases 19.1% to $54.3 Million
  • Adjusted Inc. from Continuing Operations Increases 27.1% to $153.8 Million
  • Adjusted EPS from Continuing Operations Increases 20% to $0.60 per share
  • Adjusted EPS from Continuing Operations Increases 29.8% to $1.70 per share
  • Adjusted EBITDA Increases 7.0% to $100.3 Million
   
  • Adjusted EBITDA Increases 20.6% to $305.1 Million
 

Penske Automotive Group, Inc. (NYSE:PAG), an international automotive retailer, announced today record third quarter adjusted income from continuing operations and related earnings per share. For the third quarter 2012, adjusted income from continuing operations attributable to common shareholders increased 19.1% to $54.3 million and related earnings per share increased 20.0% to $0.60 per share. This compares to adjusted income from continuing operations attributable to common shareholders of $45.6 million, or $0.50 per share in the same period last year.

Adjusted income from continuing operations attributable to common shareholders for the third quarter and nine months ended September 30, 2012, excludes after-tax costs of $13.0 million, or $0.14 per share, of debt redemption costs associated with the redemption of the Company’s $375 million of 7.75% senior subordinated notes due 2016. Adjusted income from continuing operations attributable to common shareholders for the third quarter and nine months ended September 30, 2011 excludes $11.0 million, or $0.12 per share, of net income tax benefits reflecting a positive adjustment from the resolution of certain tax items in the U.K. of $17.0 million, or $0.19 per share, partially offset by a reduction in deferred tax assets of $6.0 million, or $0.07 per share. Actual third quarter 2012 income from continuing operations was $41.3 million, or $0.46 per share, compared to income from continuing operations of $56.6 million, or $0.62 per share in the same period last year.

Total revenue increased 17.4% to $3.4 billion, including a same-store retail revenue increase of 11.7% in the third quarter. The revenue increase was driven by a 23.6% increase in total retail unit sales, including 16.6% on a same-store basis. Gross profit improved 10.9% to $511.0 million while operating income increased 11.4% to $87.5 million.

Highlights of the Third Quarter

  • Total Retail Unit Sales increased 23.6% to 88,151
    • +21.1% in the United States; +29.1% Internationally
    • New unit retail sales +26.3%
    • Used unit retail sales +20.4%
  • Same-store Retail Revenue increased 11.7%
    • New +15.9%; Used +8.4%; Finance & Insurance +13.0%; Service and Parts +1.9%
    • +16.6% in the United States; +3.6% Internationally
  • Average Transaction Price Per Unit
    • New $36,497; -3.8%
    • Used $24,982; -4.8%
  • Average Gross Profit Per Unit
    • New $2,821; Gross Margin 7.7%; down 80 bps
    • Used $1,824; Gross Margin 7.3%; down 20 bps
    • Finance & Insurance $969; down $57/unit

Chairman Roger Penske said, “The Company’s third quarter results continue to demonstrate the strength of the auto retail sales environment in both the U.S. and our international markets. We experienced strong new unit sales throughout the quarter, particularly through our volume foreign brands which increased 33.9%, including 30.7% on a same-store basis. Additionally, our retail used vehicle unit sales continue to be very strong, increasing 20.4%, including 13.3% on a same-store basis. I was particularly pleased to see service and parts gross margin improve by 80 basis points to 57.8% and a 1.9% improvement in same-store service and parts revenue.”

Penske continued, “While new and used unit sales were strong, we experienced pricing pressure in our markets, especially when compared to the third quarter last year, when a lack of inventory at our Toyota, Honda and Nissan dealerships drove higher gross profits per unit.”

For the nine months ended September 30, 2012, total revenue increased 18.2% to $10.0 billion. Adjusted income from continuing operations attributable to common shareholders increased 27.1% to $153.8 million and adjusted earnings per share attributable to common shareholders increased 29.8% to $1.70 per share. This compares to adjusted income from continuing operations attributable to common shareholders of $121.0 million, and related earnings per share of $1.31 per share in the same period last year. Actual income from continuing operations for the nine months ended September 30, 2012, was $140.8 million, or $1.56 per share, compared to income from continuing operations of $132.0 million, or $1.43 in the same period last year.

Securities Repurchase Activity

During the third quarter ended September 30, 2012, the Company completed the redemption of the remaining $25.5 million in outstanding 3.5% senior subordinated convertible notes. No shares of common stock were issued in the redemption. Additionally, the Company redeemed $375 million of 7.75% senior subordinated notes in connection with the issuance of $550 million of 5.75% senior subordinated notes.

The Company currently has remaining authorization from its Board of Directors to repurchase up to $98.3 million of its outstanding common stock or debt. Securities may be acquired from time to time either through open market purchases, negotiated transactions or other means.

Conference Call

Penske Automotive will host a conference call discussing financial results relating to the third quarter of 2012 on November 2, 2012, at 11:00 a.m. Eastern Daylight Time. To listen to the conference call, participants must dial (800) 230-1096 [International, please dial (612) 288-0337]. The call will also be simultaneously broadcast over the Internet through the Investors Relations section of the Penske Automotive Group website at www.penskeautomotive.com.

About Penske Automotive

Penske Automotive Group, Inc., headquartered in Bloomfield Hills, Michigan, operates 341 retail automotive franchises, representing 40 different brands and 30 collision repair centers. Penske Automotive, which sells new and previously owned vehicles, finance and insurance products and replacement parts, and offers maintenance and repair services on all brands it represents, has 171 franchises in 17 states and Puerto Rico and 170 franchises located outside the United States, primarily in the United Kingdom. Penske Automotive is a member of the Fortune 500 and Russell 2000 and has approximately 16,000 employees.

Non-GAAP Financial Measures

This release contains certain non-GAAP financial measures as defined under SEC rules, such as adjusted income from continuing operations, adjusted earnings per share from continuing operations, and adjusted earnings before interest, taxes, depreciation and amortization (“adjusted 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 potential and outlook. 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, adverse conditions affecting a particular manufacturer, including the adverse impact to the vehicle and parts supply chain due to natural disasters 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’s business, markets, conditions and other uncertainties, which could affect Penske Automotive’s future performance. These risks and uncertainties are addressed in Penske Automotive’s Form 10-K for the year ended December 31, 2011, and its other filings with the Securities and Exchange Commission (“SEC”). This press release speaks only as of its date, and Penske Automotive disclaims any duty to update the information herein.

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PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Statements of Income

(Amounts In Thousands, Except Per Share Data)

(Unaudited)

 
Three Months Ended Nine Months Ended
September 30, September 30,
2012   2011 2012   2011
Revenues:
New Vehicle $ 1,763,050 $ 1,451,177 $ 5,066,417 $ 4,229,192
Used Vehicle 995,376 867,969 2,926,523 2,511,573
Finance and Insurance, Net 85,420 73,191 247,906 208,540
Service and Parts 372,032 347,432 1,109,122 1,027,120
Fleet and Wholesale   185,531     158,672     656,663     490,135  
Total Revenues 3,401,409 2,898,441 10,006,631 8,466,560
Cost of Sales:
New Vehicle 1,626,759 1,327,968 4,659,490 3,877,615
Used Vehicle 922,703 802,542 2,701,645 2,310,147
Service and Parts 156,942 149,429 465,620 440,392
Fleet and Wholesale   184,009     157,739     650,302     484,222  
Total Cost of Sales 2,890,413 2,437,678 8,477,057 7,112,376
Gross Profit 510,996 460,763 1,529,574 1,354,184
SG&A Expenses 409,432 369,783 1,216,231 1,098,132
Depreciation   14,037     12,427     41,013     36,132  
Operating Income 87,527 78,553 272,330 219,920
Floor Plan Interest Expense (10,055 ) (6,837 ) (29,675 ) (20,617 )
Other Interest Expense (11,689 ) (11,153 ) (35,474 ) (32,889 )
Debt Discount Amortization --- --- --- (1,718 )
Equity in Earnings of Affiliates 8,814 9,623 21,392 17,527
Debt Redemption Costs   (17,753 )   ---     (17,753 )   ---  
Income from Continuing Operations Before Income Taxes 56,844 70,186 210,820 182,223
Income Taxes   (15,308 )   (13,246 )   (69,052 )   (49,289 )
Income from Continuing Operations 41,536 56,940 141,768 132,934
Loss from Discontinued Operations, Net of Tax   (223 )   (895 )   (3,837 )   (2,833 )
Net Income 41,313 56,045 137,931 130,101
Less: Income Attributable to Non-Controlling Interests   282     338     990     907  
Net Income Attributable to Common Shareholders $ 41,031   $ 55,707   $ 136,941   $ 129,194  
Income from Continuing Operations Per Share $ 0.46   $ 0.62   $ 1.56   $ 1.43  
Income Per Share $ 0.45   $ 0.61   $ 1.52   $ 1.40  
Weighted Average Shares Outstanding   90,296     91,431     90,362     92,169  
Amounts Attributable to Common Shareholders:
Reported Income from Continuing Operations $ 41,536 $ 56,940 $ $ 141,768 $ 132,934
Less: Income Attributable to Non-Controlling Interests   282     338     990     907  
Income from Continuing Operations, net of tax $ 41,254 $ 56,602 $ 140,778 $ 132,027
Loss from Discontinued Operations, net of tax   (223 )   (895 )   (3,837 )   (2,833 )
Net Income $ 41,031   $ 55,707   $ 136,941   $ 129,194  
 
 
 

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Balance Sheets

(Amounts In Thousands)

(Unaudited)

   
September 30, December 31,
2012 2011
Assets
Cash and Cash Equivalents $ 25,935 $ 28,676
Accounts Receivable, Net 505,770 438,769
Inventories 1,864,773 1,572,568
Other Current Assets 91,204 80,179
Assets Held for Sale   38,005   81,122
Total Current Assets 2,525,687 2,201,314
Property and Equipment, Net 961,488 856,674
Intangibles 1,210,959 1,132,181
Other Long-Term Assets   326,046   312,130
Total Assets $ 5,024,180 $ 4,502,299
 
Liabilities and Equity
Floor Plan Notes Payable $ 1,254,895 $ 977,548
Floor Plan Notes Payable – Non-Trade 704,280 691,888
Accounts Payable 275,032 220,538
Accrued Expenses 259,146 201,179
Current Portion Long-Term Debt 14,929 3,414
Liabilities Held for Sale   34,124   55,820
Total Current Liabilities 2,542,406 2,150,387
Long-Term Debt 815,918 846,777
Other Long-Term Liabilities   397,465   364,722
Total Liabilities 3,755,789 3,361,886
Equity   1,268,391   1,140,413
Total Liabilities and Equity $ 5,024,180 $ 4,502,299
 
 
 

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Statements of Income

(Amounts In Thousands, Except Per Share Data)

(Unaudited)

 
Three Months Ended
September 30,
2012   2011

% Increase/

(Decrease)

Revenues:
New Vehicle $ 1,763,050 $ 1,451,177 21.5 %
Used Vehicle 995,376 867,969 14.7 %
Finance and Insurance, Net 85,420 73,191 16.7 %
Service and Parts 372,032 347,432 7.1 %
Fleet and Wholesale   185,531     158,672   16.9 %
Total Revenues 3,401,409 2,898,441 17.4 %
Cost of Sales:
New Vehicle 1,626,759 1,327,968 22.5 %
Used Vehicle 922,703 802,542 15.0 %
Service and Parts 156,942 149,429 5.0 %
Fleet and Wholesale   184,009     157,739   16.7 %
Total Cost of Sales 2,890,413 2,437,678 18.6 %
Gross Profit 510,996 460,763 10.9 %
SG&A Expenses 409,432 369,783 10.7 %
Depreciation   14,037     12,427   13.0 %
Operating Income 87,527 78,553 11.4 %
Floor Plan Interest Expense (10,055 ) (6,837 ) 47.1 %
Other Interest Expense (11,689 ) (11,153 ) 4.8 %
Equity in Earnings of Affiliates 8,814 9,623 (8.4 %)
Debt Redemption Costs   (17,753 )   ---   ---  
Income from Continuing Operations Before Income Taxes 56,844 70,186 (19.0 %)
Income Taxes   (15,308 )   (13,246 ) ( 15.6 %
Income from Continuing Operations 41,536 56,940 (27.1 %)
Loss from Discontinued Operations, Net of Tax   (223 )   (895 ) (75.1 %)
Net Income 41,313 56,045 (26.3 %)
Less: Income Attributable to Non-Controlling Interests   282     338   (16.6 %)
Net Income Attributable to Common Shareholders $ 41,031   $ 55,707   (26.3 %)
Income from Continuing Operations Per Share $ 0.46   $ 0.62   (25.8 %)
Income Per Share $ 0.45   $ 0.61   (26.2 %)
Weighted Average Shares Outstanding   90,296     91,431   (1.2 %)
Amounts Attributable to Common Shareholders:
Reported Income from Continuing Operations $ 41,536 $ 56,940 (27.1 %)
Less: Income Attributable to Non-Controlling Interests   282     338   (16.6 %)
Income from Continuing Operations, net of tax $ 41,254 $ 56,602 (27.1 %)
Loss from Discontinued Operations, net of tax   (223 )   (895 ) (75.1 %)
Net Income $ 41,031   $ 55,707   (26.3 %)
 
 
 

PENSKE AUTOMOTIVE GROUP, INC.

Selected Data

(Unaudited)

 
Three Months Ended
September 30,
2012   2011  

% Increase/
(Decrease)

Total Retail Units:
New Retail 48,307 38,248 26.3 %
Used Retail   39,844     33,084   20.4 %
Total Retail   88,151     71,332   23.6 %
 
Same-Store Retail Units:
New Same-Store Retail 44,254 37,057 19.4 %
Used Same-Store Retail   36,855     32,531   13.3 %
Total Same-Store Retail   81,109     69,588   16.6 %
 
Same-Store Retail Revenue: (Amounts in thousands)
New Vehicles $ 1,615,941 $ 1,393,797 15.9 %
Used Vehicles 924,835 853,002 8.4 %
Finance and Insurance, Net 80,911 71,584 13.0 %
Service and Parts   342,069     335,846   1.9 %
Total Same-Store Retail $ 2,963,756   $ 2,654,229   11.7 %
 
Revenue Mix:
New Vehicles 51.8 % 50.1 % 170 bps
Used Vehicles 29.3 % 29.9 % (60 bps)
Finance and Insurance, Net 2.5 % 2.5 % ---
Service and Parts 10.9 % 12.0 % (110 bps)
Fleet and Wholesale 5.5 % 5.5 % ---
 
Average Revenue per Vehicle Retailed:
New Vehicles $ 36,497 $ 37,941 (3.8 %)
Used Vehicles 24,982 26,235 (4.8 %)
 
Gross Profit per Vehicle Retailed:
New Vehicles $ 2,821 $ 3,221 (12.4 %)
Used Vehicles 1,824 1,978 (7.8 %)
Finance and Insurance 969 1,026 (5.6 %)
 
Operating items as a percentage of revenue:
New Vehicle Gross Profit 7.7 % 8.5 % (80 bps)
Used Vehicle Gross Profit 7.3 % 7.5 % (20 bps)
Service and Parts Gross Profit 57.8 % 57.0 % 80 bps
Total Gross Profit 15.0 % 15.9 % (90 bps)
Selling, General and Admin. Expenses 12.0 % 12.8 % (80 bps)
Operating Income 2.6 % 2.7 % (10 bps)
Inc. From Cont. Ops. Before Inc. Taxes 1.7 % 2.4 % (70 bps)
 
Operating items as a percentage of total gross profit:
Selling, General and Administrative Expenses 80.1 % 80.3 % (20 bps)
Operating Income 17.1 % 17.0 % 10 bps
 
 
 

PENSKE AUTOMOTIVE GROUP, INC.

Selected Data (Continued)

(Unaudited)

 
Three Months Ended
September 30,
2012   2011  

% Increase/

(Decrease)

 
Other (Amounts in Thousands):
EBITDA * $ 82,570 $ 93,766 (11.9 %)
Adjusted EBITDA * 100,323 93,766 7.0 %
Rent Expense 44,394 42,520 4.4 %
Floorplan Credits 5,864 4,865 20.5 %
 

* See the following Non-GAAP reconciliation tables

 
 
 

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Statements of Income

(Amounts In Thousands, Except Per Share Data)

(Unaudited)

 
Nine Months Ended
September 30,
2012   2011  

% Increase/

(Decrease)

Revenues:
New Vehicle $ 5,066,417 $ 4,229,192 19.8 %
Used Vehicle 2,926,523 2,511,573 16.5 %
Finance and Insurance, Net 247,906 208,540 18.9 %
Service and Parts 1,109,122 1,027,120 8.0 %
Fleet and Wholesale   656,663     490,135   34.0 %
Total Revenues 10,006,631 8,466,560 18.2 %
Cost of Sales:
New Vehicle 4,659,490 3,877,615 20.2 %
Used Vehicle 2,701,645 2,310,147 16.9 %
Service and Parts 465,620 440,392 5.7 %
Fleet and Wholesale   650,302     484,222   34.3 %
Total Cost of Sales 8,477,057 7,112,376 19.2 %
Gross Profit 1,529,574 1,354,184 13.0 %
SG&A Expenses 1,216,231 1,098,132 10.8 %
Depreciation   41,013     36,132   13.5 %
Operating Income 272,330 219,920 23.8 %
Floor Plan Interest Expense (29,675 ) (20,617 ) 43.9 %
Other Interest Expense (35,474 ) (32,889 ) 7.9 %
Debt Discount Amortization --- (1,718 ) ---
Equity in Earnings of Affiliates 21,392 17,527 22.1 %
Debt Redemption Costs   (17,753 )   ---   ---  
Income from Continuing Operations Before Income Taxes 210,820 182,223 15.7 %
Income Taxes   (69,052 )   (49,289 ) 40.1 %
Income from Continuing Operations 141,768 132,934 6.6 %
Loss from Discontinued Operations, Net of Tax   (3,837 )   (2,833 ) 35.4 %
Net Income 137,931 130,101 6.0 %
Less: Income Attributable to Non-Controlling Interests   990     907   9.2 %
Net Income Attributable to Common Shareholders $ 136,941   $ 129,194   6.0 %
Income from Continuing Operations Per Share $ 1.56   $ 1.43   9.1 %
Income Per Share $ 1.52   $ 1.40   8.6 %
Weighted Average Shares Outstanding   90,362     92,169   (2.0 %)
Amounts Attributable to Common Shareholders:
Reported Income from Continuing Operations $ 141,768 $ 132,934 6.6 %
Less: Income Attributable to Non-Controlling Interests   990     907   9.2 %
Income from Continuing Operations, net of tax $ 140,778 $ 132,027 6.6 %
Loss from Discontinued Operations, net of tax   (3,837 )   (2,833 ) 35.4 %
Net Income $ 136,941   $ 129,194   6.0 %
 
 
 

PENSKE AUTOMOTIVE GROUP, INC.

Selected Data

(Unaudited)

 
Nine Months Ended
September 30,
2012   2011  

% Increase/
(Decrease)

Total Retail Units:
New Retail 138,080 114,242 20.9 %
Used Retail   115,692     95,525   21.1 %
Total Retail   253,772     209,767   21.0 %
 
Same-Store Retail Units:
New Same-Store Retail 125,685 111,770 12.4 %
Used Same-Store Retail   106,364     93,808   13.4 %
Total Same-Store Retail   232,049     205,578   12.9 %
 
Same-Store Retail Revenue: (Amounts in thousands)
New Vehicles $ 4,617,494 $ 4,131,472 11.8 %
Used Vehicles 2,697,265 2,470,351 9.2 %
Finance and Insurance, Net 232,364 204,533 13.6 %
Service and Parts   1,018,149     1,007,039   1.1 %
Total Same-Store Retail $ 8,565,272   $ 7,813,395   9.6 %
 
Revenue Mix:
New Vehicles 50.6 % 50.0 % 60 bps
Used Vehicles 29.2 % 29.7 % (50 bps)
Finance and Insurance, Net 2.5 % 2.5 % ---
Service and Parts 11.1 % 12.1 % (100 bps)
Fleet and Wholesale 6.6 % 5.7 % 90 bps
 
Average Revenue per Vehicle Retailed:
New Vehicles $ 36,692 $ 37,020 (0.9 %)
Used Vehicles 25,296 26,292 (3.8 %)
 
Gross Profit per Vehicle Retailed:
New Vehicles $ 2,947 $ 3,077 (4.2 %)
Used Vehicles 1,944 2,109 (7.8 %)
Finance and Insurance 977 994 (1.7 %)
 
Operating items as a percentage of revenue:
New Vehicle Gross Profit 8.0 % 8.3 % (30 bps)
Used Vehicle Gross Profit 7.7 % 8.0 % (30 bps)
Service and Parts Gross Profit 58.0 % 57.1 % 90 bps
Total Gross Profit 15.3 % 16.0 % (70 bps)
Selling, General and Admin. Expenses 12.2 % 13.0 % (80 bps)
Operating Income 2.7 % 2.6 % 10 bps
Inc. From Cont. Ops. Before Inc. Taxes 2.1 % 2.2 % (10 bps)
 
Operating items as a percentage of total gross profit:
Selling, General and Administrative Expenses 79.5 % 81.1 % (160 bps)
Operating Income 17.8 % 16.2 % 160 bps
 
 
 

PENSKE AUTOMOTIVE GROUP, INC.

Selected Data (Continued)

(Unaudited)

 
Nine Months Ended
September 30,
2012   2011  

% Increase/

(Decrease)

 
Other (Amounts in Thousands):
EBITDA * $ 287,307 $ 252,962 13.6 %
Adjusted EBITDA * 305,060 252,962 20.6 %
Rent Expense 132,614 126,774 4.6 %
Floorplan Credits 17,146 15,229 12.6 %
 

* See the following Non-GAAP reconciliation tables

 
 
 

PENSKE AUTOMOTIVE GROUP, INC.

Selected Data

Brand Revenue Mix

(Unaudited)

   
Three Months Ended Nine Months Ended
September 30, September 30,
2012   2011 2012   2011
Brand Revenue Mix:
Premium:
BMW 25 % 24 % 24 % 24 %
Audi 12 % 13 % 12 % 12 %
Mercedes-Benz 11 % 11 % 11 % 10 %
Lexus 4 % 4 % 4 % 4 %
Land Rover 4 % 4 % 4 % 4 %
Porsche 4 % 4 % 4 % 5 %
Ferrari / Maserati 2 % 3 % 3 % 3 %
Acura 2 % 2 % 2 % 2 %
Other 4 % 4 % 4 % 4 %
Total Premium 68 % 69 % 68 % 68 %
Foreign:
Toyota 11 % 10 % 11 % 11 %
Honda 11 % 11 % 11 % 11 %
Nissan 2 % 2 % 2 % 2 %
Volkswagen 2 % 2 % 2 % 2 %
Other 2 % 2 % 2 % 2 %
Total Foreign 28 % 27 % 28 % 28 %
Domestic Big 3
General Motors / Chrysler / Ford 4 % 4 % 4 % 4 %
 
Revenue Mix:
U.S. 63 % 63 % 62 % 62 %
International 37 % 37 % 38 % 38 %
 
 
 

PENSKE AUTOMOTIVE GROUP, INC.

Non-GAAP Reconciliation

(Unaudited)

   
Income Earnings Per Share
Three Months Ended Three Months Ended
September 30, September 30,
2012   2011   2012   2011  
 
Income from Continuing Operations net of tax and Earnings per Share $ 41.3 $ 56.6 $ 0.46 $ 0.62
Debt Redemption Costs (1) 13.0 --- 0.14 ---
Net Tax Benefits (2)   ---   (11.0 )   ---   (0.12 )
Adjusted Income from Continuing operations and Adjusted Earnings per Share $ 54.3 $ 45.6   19.1 % $ 0.60 $ 0.50   20.0 %
 
 
Income Earnings Per Share
Nine Months Ended Nine Months Ended
September 30, September 30,
2012 2011 2012 2011
 
Income from Continuing Operations net of tax and Earnings per Share $ 140.8 $ 132.0 $ 1.56 $ 1.43
Debt Redemption Costs (1) 13.0 --- 0.14 ---
Net Tax Benefits (2)   ---   (11.0 )   ---   (0.12 )
Adjusted Income from Continuing Operations and Adjusted Earnings per Share $ 153.8 $ 121.0   27.1 % $ 1.70 $ 1.31   29.8 %
 
(1)   Costs associated with the redemption of the Company’s $375 million of 7.75% senior subordinated notes due 2016 of $17.8 million ($13.0 million net of taxes), or $0.14 per share.
(2) Net income tax benefit reflecting a positive adjustment from the resolution of certain tax items in the U.K. of $17.0 million, or $0.19 per share, partially offset by a reduction in deferred tax assets of $6.0 million, or $0.07 per share.
 
 
 

PENSKE AUTOMOTIVE GROUP, INC.

Non-GAAP Reconciliation

(Unaudited)

 

Reconciliation of 2012 and 2011 net income to EBITDA and Adjusted EBITDA:

 
Three Months Ended
September 30,
(Amounts in Thousands) 2012   2011  

% Increase/

(Decrease)

 
Net Income $ $41,313 $ 56,045 (26.3 %)
Depreciation 14,037 12,427 13.0 %
Other Interest Expense 11,689 11,153 4.8 %
Income Taxes 15,308 13,246 15.6 %
Loss from Discontinued Operations, net   223   895 (75.1 %)
EBITDA $ 82,570 $ 93,766 (11.9 %)
Add back: Debt Redemption Costs   17,753   --- n/a  
Adjusted EBITDA $ 100,323 $ 93,766 7.0 %
 
 
Nine Months Ended
September 30,
(Amounts in Thousands) 2012 2011

% Increase/

(Decrease)

 
Net Income $ 137,931 $ 130,101 6.0 %
Depreciation 41,013 36,132 13.5 %
Other Interest Expense 35,474 32,889 7.9 %
Debt Discount Amortization --- 1,718 n/a
Income Taxes 69,052 49,289 40.1 %
Loss from Discontinued Operations, net   3,837   2,833 35.4 %
EBITDA $ 287,307 $ 252,962 13.6 %
Add back: Debt Redemption Costs   17,753   --- n/a  
Adjusted EBITDA $ 305,060 $ 252,962 20.6 %

Source: Penske Automotive Group, Inc.

Penske Automotive Group, Inc.
David K. Jones
Executive Vice President and Chief Financial Officer
248-648-2800
dave.jones@penskeautomotive.com
or
Penske Automotive Group, Inc.
Anthony R. Pordon
Executive Vice President Investor Relations and Corporate Development
248-648-2540
tpordon@penskeautomotive.com