Reports Record Fourth Quarter Income from Continuing Operations
and Earnings per Share
Earnings per Share from Continuing Operations Rises 21.3% to $0.57
Completes Most Profitable Year in Company History
BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--
Penske Automotive Group, Inc. (NYSE:PAG):
|
|
|
|
| Fourth Quarter 2012 |
| Full Year 2012 |
-
Revenue Increases 17.9% to $3.4 Billion
|
| -
Revenue Increases 18.3% to $13.2 Billion
|
-
Same-store Retail Revenue Increases 11.4 %
| | -
Same-store Retail Revenue Increases 9.9%
|
-
Income from Continuing Operations Increases 19.5% to $51.0
Million
| | - Adjusted Inc. from Continuing Operations Increases 25.8% to
$206.0 Million
|
-
EPS from Continuing Operations Increases 21.3% to $0.57 per share
| | -
Adjusted EPS from Continuing Operations Increases 26.7% to $2.28
per share
|
-
EBITDA Increases 14.4% to $102.2 Million
|
| -
Adjusted EBITDA Increases 19.6% to $407.6 Million
|
| |
|
Penske
Automotive Group, Inc. (NYSE:PAG), an international automotive
retailer, announced today record fourth quarter income from continuing
operations and related earnings per share. For the fourth quarter 2012,
income from continuing operations attributable to common shareholders
increased 19.5% to $51.0 million and related earnings per share
increased 21.3% to $0.57 per share. This compares to income from
continuing operations attributable to common shareholders of $42.7
million, or $0.47 per share in the same period last year. Fourth quarter
results include $1.7 million ($1.2 million after-taxes, or $0.01 per
share) in expenses for insurance deductibles and clean-up costs
associated with Superstorm Sandy.
Total revenue increased 17.9% to $3.4 billion, including a same-store
retail revenue increase of 11.4% in the fourth quarter. The revenue
increase was driven by a 19.3% increase in total retail unit sales,
including an 11.5% increase on a same-store basis. Gross profit improved
16.9% to $515.1 million while operating income increased 19.9% to $91.5
million.
Highlights of the Fourth Quarter
-
Total Retail Unit Sales increased 19.3% to 81,383
-
+15.3% in the United States; +30.3% Internationally
-
New unit retail sales +21.7%
-
Used unit retail sales +16.2%
-
Same-store Retail Revenue increased 11.4%
-
New +16.1%; Used +6.0%; Finance & Insurance +13.0%; Service and
Parts +3.2%
-
+12.8% in the United States; +8.5% Internationally
-
Average Transaction Price Per Unit
-
New $38,881; (0.4%)
-
Used $25,791; (2.5%)
-
Average Gross Profit Per Unit
-
New $3,197, ($58/unit); Gross Margin 8.2%, (10 basis points)
-
Used $1,857, ($61/unit); Gross Margin 7.2%, (10 basis points)
-
Finance & Insurance $986, +$1/unit
Chairman Roger Penske said, “I’m pleased that our retail automotive
business reported record profitability in the fourth quarter, producing
double-digit growth in operating income, income from continuing
operations and earnings per share during the fourth quarter, despite the
effects of Superstorm Sandy which impacted operations in the northeast
U.S. during the quarter. I am particularly pleased that our same-store
retail revenues improved by 11.4% while gross profit per retail unit
stabilized, and service and parts margin improved 110 basis points to
58.8%.”
For the year ended December 31, 2012, total revenue increased 18.3% to
$13.2 billion. Adjusted income from continuing operations attributable
to common shareholders increased 25.8% to $206.0 million and adjusted
earnings per share attributable to common shareholders increased 26.7%
to $2.28 per share. This compares to adjusted income from continuing
operations attributable to common shareholders of $163.8 million, and
adjusted earnings per share of $1.80 per share in the same period last
year.
The full year 2012 results exclude 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. The full year 2011 results exclude $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. Income from continuing operations
attributable to common shareholders for the twelve months ended December
31, 2012, was $193.0 million, or $2.14 per share, compared to income
from continuing operations attributable to common shareholders of $174.8
million, or $1.92 in the same period last year.
Penske continued, “2012 was a very solid year of growth and
profitability for our Company. We expanded our presence globally by
completing acquisitions in Northern Ireland and Italy, and we entered
the Madison, Wisconsin, market in the U.S. In total, our business added
$750 million in estimated annualized revenue through acquisitions during
the year, and generated a 9.9% increase in same-store retail revenue,
resulting in revenue growth of 18.3%, which contributed to a 23.4%
increase in operating income and a 26.7% increase in adjusted earnings
per share.”
Conference Call
Penske Automotive will host a conference call discussing financial
results relating to the fourth quarter of 2012 on February 6, 2013,
at 2:00 p.m.Eastern Standard 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 Investors
Relations section of the Penske Automotive Group website. Additionally,
an investor presentation relating to the fourth quarter and full year
2012 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., headquartered in Bloomfield Hills, Michigan,
operates 344 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 173 franchises in 18 states and Puerto Rico
and 171 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 16,700 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.
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/#!/Penskecarscorp
Visit Penske Automotive on YouTube: http://www.youtube.com/penskecars
|
| | | |
PENSKE AUTOMOTIVE GROUP, INC. |
Consolidated Condensed Statements of Income
|
(Amounts In Thousands, Except Per Share Data)
|
(Unaudited)
|
| | | |
|
| | Three Months Ended | | Twelve Months Ended |
| | December 31, | | December 31, |
| | 2012 |
| 2011 | | 2012 |
| 2011 |
|
Revenues:
| | | | | | | | |
|
New Vehicle
| |
$
|
1,803,763
| | |
$
|
1,487,524
| | |
$
|
6,782,389
| | |
$
|
5,639,381
| |
|
Used Vehicle
| | |
902,471
| | | |
797,005
| | | |
3,747,236
| | | |
3,238,152
| |
|
Finance and Insurance, Net
| | |
80,244
| | | |
67,240
| | | |
322,567
| | | |
270,579
| |
|
Service and Parts
| | |
363,528
| | | |
332,770
| | | |
1,446,729
| | | |
1,329,064
| |
|
Fleet, Wholesale and Other
| |
|
221,246
|
| |
|
173,928
|
| |
|
864,596
|
| |
|
650,316
|
|
|
Total Revenues
| |
$
|
3,371,252
| | |
$
|
2,858,467
| | |
$
|
13,163,517
| | |
$
|
11,127,492
| |
|
Cost of Sales:
| | | | | | | | |
|
New Vehicle
| |
$
|
1,655,437
| | |
$
|
1,363,453
| | |
$
|
6,233,338
| | |
$
|
5,169,968
| |
|
Used Vehicle
| | |
837,498
| | | |
739,212
| | | |
3,462,908
| | | |
2,984,267
| |
|
Service and Parts
| | |
149,791
| | | |
140,915
| | | |
603,682
| | | |
566,380
| |
|
Fleet, Wholesale and Other
| |
|
213,413
|
| |
|
174,394
|
| |
|
850,641
|
| |
|
645,055
|
|
|
Total Cost of Sales
| | |
2,856,139
| | | |
2,417,974
| | | |
11,150,569
| | | |
9,365,670
| |
|
Gross Profit
| | |
515,113
| | | |
440,493
| | | |
2,012,948
| | | |
1,761,822
| |
|
SG&A Expenses
| | |
409,505
| | | |
352,076
| | | |
1,594,095
| | | |
1,419,123
| |
|
Depreciation
| |
|
14,140
|
| |
|
12,141
|
| |
|
53,995
|
| |
|
47,101
|
|
|
Operating Income
| | |
91,468
| | | |
76,276
| | | |
364,858
| | | |
295,598
| |
|
Floor Plan Interest Expense
| | |
(9,584
|
)
| | |
(7,001
|
)
| | |
(38,797
|
)
| | |
(27,218
|
)
|
|
Other Interest Expense
| | |
(11,656
|
)
| | |
(11,657
|
)
| | |
(46,892
|
)
| | |
(44,256
|
)
|
|
Equity in Earnings of Affiliates
| | |
6,180
| | | |
7,924
| | | |
27,572
| | | |
25,451
| |
|
Debt Redemption Costs
| | |
---
| | | |
---
| | | |
(17,753
|
)
| | |
---
| |
|
Debt Discount Amortization
| |
|
---
|
| |
|
---
|
| |
|
---
|
| |
|
(1,718
|
)
|
|
Income from Continuing Operations Before Income Taxes
| | |
76,408
| | | |
65,542
| | | |
288,988
| | | |
247,857
| |
|
Income Taxes
| |
|
(24,726
|
)
| |
|
(22,373
|
)
| |
|
(94,330
|
)
| |
|
(71,690
|
)
|
|
Income from Continuing Operations
| | |
51,682
| | | |
43,169
| | | |
194,658
| | | |
176,167
| |
|
(Loss) Income from Discontinued Operations, Net of Tax
| |
|
(2,446
|
)
| |
|
4,988
|
| |
|
(7,491
|
)
| |
|
2,091
|
|
|
Net Income
| | |
49,236
| | | |
48,157
| | | |
187,167
| | | |
178,258
| |
|
Less: Income Attributable to Non-Controlling Interests
| |
|
(637
|
)
| |
|
(470
|
)
| |
|
(1,627
|
)
| |
|
(1,377
|
)
|
|
Net Income Attributable to Common Shareholders
| |
$
|
48,599
|
| |
$
|
47,687
|
| |
$
|
185,540
|
| |
$
|
176,881
|
|
|
Income from Continuing Operations Per Share
| |
$
|
0.57
|
| |
$
|
0.47
|
| |
$
|
2.14
|
| |
$
|
1.92
|
|
|
Income Per Share
| |
$
|
0.54
|
| |
$
|
0.53
|
| |
$
|
2.05
|
| |
$
|
1.94
|
|
|
Weighted Average Shares Outstanding
| |
|
90,291
|
| |
|
90,553
|
| |
|
90,342
|
| |
|
91,274
|
|
| Amounts Attributable to Common Shareholders: | | | | | | | | |
|
Reported Income from Continuing Operations
| |
$
|
51,682
| | |
$
|
43,169
| |
$
|
$
|
194,658
| | |
$
|
176,167
| |
|
Less: Income Attributable to Non-Controlling Interests
| |
|
(637
|
)
| |
|
(470
|
)
| |
|
(1,627
|
)
| |
|
(1,377
|
)
|
|
Income from Continuing Operations, net of tax
| |
$
|
51,045
| | |
$
|
42,699
| | |
$
|
193,031
| | |
$
|
174,790
| |
|
(Loss) Income from Discontinued Operations, net of tax
| |
|
(2,446
|
)
| |
|
4,988
|
| |
|
(7,491
|
)
| |
|
2,091
|
|
|
Net Income
| |
$
|
48,599
|
| |
$
|
47,687
|
| |
$
|
185,540
|
| |
$
|
176,881
|
|
|
| |
| |
PENSKE AUTOMOTIVE GROUP, INC. |
Consolidated Condensed Balance Sheets
|
(Amounts In Thousands)
|
(Unaudited)
|
| | | |
|
| | December 31, | | December 31, |
| | 2012 | | 2011 |
| Assets | | | | |
|
Cash and Cash Equivalents
| |
$
|
43,753
| |
$
|
27,201
|
|
Accounts Receivable, Net
| | |
552,868
| | |
429,633
|
|
Inventories
| | |
1,991,167
| | |
1,535,386
|
|
Other Current Assets
| | |
90,854
| | |
72,981
|
|
Assets Held for Sale
| |
|
94,441
| |
|
159,243
|
|
Total Current Assets
| | |
2,773,083
| | |
2,224,444
|
|
Property and Equipment, Net
| | |
1,023,781
| | |
839,630
|
|
Intangibles
| | |
1,258,012
| | |
1,123,206
|
|
Other Long-Term Assets
| |
|
324,114
| |
|
312,121
|
|
Total Assets
| |
$
|
5,378,990
| |
$
|
4,499,401
|
| | | |
|
| Liabilities and Equity | | | | |
|
Floor Plan Notes Payable
| |
$
|
1,408,363
| |
$
|
966,579
|
|
Floor Plan Notes Payable – Non-Trade
| | |
716,621
| | |
668,581
|
|
Accounts Payable
| | |
263,349
| | |
214,870
|
|
Accrued Expenses
| | |
223,574
| | |
195,108
|
|
Current Portion Long-Term Debt
| | |
19,493
| | |
3,414
|
|
Liabilities Held for Sale
| |
|
62,156
| |
|
103,001
|
|
Total Current Liabilities
| | |
2,693,556
| | |
2,151,553
|
|
Long-Term Debt
| | |
918,024
| | |
846,777
|
|
Other Long-Term Liabilities
| |
|
451,089
| |
|
351,499
|
|
Total Liabilities
| | |
4,062,669
| | |
3,349,829
|
|
Equity
| |
|
1,316,321
| |
|
1,149,572
|
|
Total Liabilities and Equity
| |
$
|
5,378,990
| |
$
|
4,499,401
|
|
| |
PENSKE AUTOMOTIVE GROUP, INC. |
Consolidated Condensed Statements of Income
|
(Amounts In Thousands, Except Per Share Data)
|
(Unaudited)
|
| |
|
| | Three Months Ended |
| | December 31, |
| | |
| | | % Increase/ |
| | 2012 | | 2011 | | (Decrease) |
|
Revenues:
| | | | | | |
|
New Vehicle
| |
$
|
1,803,763
| | |
$
|
1,487,524
| | |
21.3
|
%
|
|
Used Vehicle
| | |
902,471
| | | |
797,005
| | |
13.2
|
%
|
|
Finance and Insurance, Net
| | |
80,244
| | | |
67,240
| | |
19.3
|
%
|
|
Service and Parts
| | |
363,528
| | | |
332,770
| | |
9.2
|
%
|
|
Fleet, Wholesale and Other
| |
|
221,246
|
| |
|
173,928
|
| |
27.2
|
%
|
|
Total Revenues
| |
$
|
3,371,252
| | |
$
|
2,858,467
| | |
17.9
|
%
|
|
Cost of Sales:
| | | | | | |
|
New Vehicle
| |
$
|
1,655,437
| | |
$
|
1,363,453
| | |
21.4
|
%
|
|
Used Vehicle
| | |
837,498
| | | |
739,212
| | |
13.3
|
%
|
|
Service and Parts
| | |
149,791
| | | |
140,915
| | |
6.3
|
%
|
|
Fleet, Wholesale and Other
| |
|
213,413
|
| |
|
174,394
|
| |
22.4
|
%
|
|
Total Cost of Sales
| | |
2,856,139
| | | |
2,417,974
| | |
18.1
|
%
|
|
Gross Profit
| | |
515,113
| | | |
440,493
| | |
16.9
|
%
|
|
SG&A Expenses
| | |
409,505
| | | |
352,076
| | |
16.3
|
%
|
|
Depreciation
| |
|
14,140
|
| |
|
12,141
|
| |
16.5
|
%
|
|
Operating Income
| | |
91,468
| | | |
76,276
| | |
19.9
|
%
|
|
Floor Plan Interest Expense
| | |
(9,584
|
)
| | |
(7,001
|
)
| |
36.9
|
%
|
|
Other Interest Expense
| | |
(11,656
|
)
| | |
(11,657
|
)
| |
---
| |
|
Equity in Earnings of Affiliates
| |
|
6,180
|
| |
|
7,924
|
| |
(22.0
|
%)
|
|
Income from Continuing Operations Before Income Taxes
| | |
76,408
| | | |
65,542
| | |
16.6
|
%
|
|
Income Taxes
| |
|
(24,726
|
)
| |
|
(22,373
|
)
|
(
|
10.5
|
%
|
|
Income from Continuing Operations
| | |
51,682
| | | |
43,169
| | |
19.7
|
%
|
|
(Loss) Income from Discontinued Operations, Net of Tax
| |
|
(2,446
|
)
| |
|
4,988
|
| |
nm
|
|
Net Income
| | |
49,236
| | | |
48,157
| | |
2.2
|
%
|
|
Less: Income Attributable to Non-Controlling Interests
| |
|
(637
|
)
| |
|
(470
|
)
| |
35.5
|
%
|
|
Net Income Attributable to Common Shareholders
| |
$
|
48,599
|
| |
$
|
47,687
|
| |
1.9
|
%
|
|
Income from Continuing Operations Per Share
| |
$
|
0.57
|
| |
$
|
0.47
|
| |
21.3
|
%
|
|
Income Per Share
| |
$
|
0.54
|
| |
$
|
0.53
|
| |
1.9
|
%
|
|
Weighted Average Shares Outstanding
| |
|
90,291
|
| |
|
90,553
|
| |
(0.3
|
%)
|
| Amounts Attributable to Common Shareholders: | | | | | | |
|
Reported Income from Continuing Operations
| |
$
|
51,682
| | |
$
|
43,169
| | |
19.7
|
%
|
|
Less: Income Attributable to Non-Controlling Interests
| |
|
(637
|
)
| |
|
(470
|
)
| |
35.5
|
%
|
|
Income from Continuing Operations, net of tax
| |
$
|
51,045
| | |
$
|
42,699
| | |
19.5
|
%
|
|
(Loss) Income from Discontinued Operations, net of tax
| |
|
(2,446
|
)
| |
|
4,988
|
| |
nm
|
|
Net Income
| |
$
|
48,599
|
| |
$
|
47,687
|
| |
1.9
|
%
|
nm – not meaningful
|
| |
PENSKE AUTOMOTIVE GROUP, INC. |
Selected Data
|
(Unaudited)
|
| |
|
| | Three Months Ended |
| | December 31, |
| | |
| |
| % Increase/ |
| | 2012 | | 2011 | | (Decrease) |
|
Total Retail Units:
| | | | | | |
|
New Retail
| | |
46,392
| | | |
38,120
| | |
21.7
|
%
|
|
Used Retail
| |
|
34,991
|
| |
|
30,124
|
| |
16.2
|
%
|
|
Total Retail
| |
|
81,383
|
| |
|
68,244
|
| |
19.3
|
%
|
| | | | | |
|
|
Same-Store Retail Units:
| | | | | | |
|
New Same-Store Retail
| | |
43,300
| | | |
37,739
| | |
14.7
|
%
|
|
Used Same-Store Retail
| |
|
32,036
|
| |
|
29,818
|
| |
7.4
|
%
|
|
Total Same-Store Retail
| |
|
75,336
|
| |
|
67,557
|
| |
11.5
|
%
|
| | | | | |
|
|
Same-Store Retail Revenue: (Amounts in thousands)
| | | | | | |
|
New Vehicles
| |
$
|
1,711,068
| | |
$
|
1,473,813
| | |
16.1
|
%
|
|
Used Vehicles
| | |
838,745
| | | |
791,132
| | |
6.0
|
%
|
|
Finance and Insurance, Net
| | |
75,396
| | | |
66,722
| | |
13.0
|
%
|
|
Service and Parts
| |
|
341,367
|
| |
|
330,670
|
| |
3.2
|
%
|
|
Total Same-Store Retail
| |
$
|
2,966,576
|
| |
$
|
2,662,337
|
| |
11.4
|
%
|
| | | | | |
|
|
Revenue Mix:
| | | | | | |
|
New Vehicles
| | |
53.5
|
%
| | |
52.0
|
%
| |
150 bps
|
|
Used Vehicles
| | |
26.8
|
%
| | |
27.9
|
%
| |
(110 bps)
|
|
Finance and Insurance, Net
| | |
2.4
|
%
| | |
2.4
|
%
| |
---
| |
|
Service and Parts
| | |
10.8
|
%
| | |
11.6
|
%
| |
(80 bps)
|
|
Fleet, Wholesale and Other
| | |
6.5
|
%
| | |
6.1
|
%
| |
40 bps
|
| | | | | |
|
|
Average Revenue per Vehicle Retailed:
| | | | | | |
|
New Vehicles
| |
$
|
38,881
| | |
$
|
39,022
| | |
(0.4
|
%)
|
|
Used Vehicles
| | |
25,791
| | | |
26,457
| | |
(2.5
|
%)
|
| | | | | |
|
|
Gross Profit per Vehicle Retailed:
| | | | | | |
|
New Vehicles
| |
$
|
3,197
| | |
$
|
3,255
| | |
(1.8
|
%)
|
|
Used Vehicles
| | |
1,857
| | | |
1,918
| | |
(3.2
|
%)
|
|
Finance and Insurance
| | |
986
| | | |
985
| | |
0.1
|
%
|
| | | | | |
|
|
Operating items as a percentage of revenue:
| | | | | | |
|
New Vehicle Gross Profit
| | |
8.2
|
%
| | |
8.3
|
%
| |
(10 bps)
|
|
Used Vehicle Gross Profit
| | |
7.2
|
%
| | |
7.3
|
%
| |
(10 bps)
|
|
Service and Parts Gross Profit
| | |
58.8
|
%
| | |
57.7
|
%
| |
110 bps
|
|
Total Gross Profit
| | |
15.3
|
%
| | |
15.4
|
%
| |
(10 bps)
|
|
Selling, General and Admin. Expenses
| | |
12.1
|
%
| | |
12.3
|
%
| |
(20 bps)
|
|
Operating Income
| | |
2.7
|
%
| | |
2.7
|
%
| |
---
| |
|
Inc. From Cont. Ops. Before Inc. Taxes
| | |
2.3
|
%
| | |
2.3
|
%
| |
---
| |
| | | | | |
|
|
Operating items as a percentage of total gross profit:
| | | | | | |
|
Selling, General and Administrative Expenses
| | |
79.5
|
%
| | |
79.9
|
%
| |
(40 bps)
|
|
Operating Income
| | |
17.8
|
%
| | |
17.3
|
%
| |
50 bps
|
|
| |
PENSKE AUTOMOTIVE GROUP, INC. |
Selected Data (Continued)
|
(Unaudited)
|
| |
|
| | Three Months Ended |
| | December 31, |
| | |
| |
| % Increase/ |
| | 2012 | | 2011 | | (Decrease) |
| | | | | |
|
|
Other (Amounts in Thousands):
| | | | | | |
|
EBITDA *
| |
$
|
102,204
| |
$
|
89,340
| |
14.4
|
%
|
|
Rent Expense
| | |
43,891
| | |
41,712
| |
5.2
|
%
|
|
Floorplan Credits
| | |
6,280
| | |
4,847
| |
29.6
|
%
|
* See the following Non-GAAP reconciliation tables
|
| |
PENSKE AUTOMOTIVE GROUP, INC. |
Consolidated Condensed Statements of Income
|
(Amounts In Thousands, Except Per Share Data)
|
(Unaudited)
|
| |
|
| | Twelve Months Ended |
| | December 31, |
| | |
| |
| % Increase/ |
| | 2012 | | 2011 | | (Decrease) |
|
Revenues:
| | | | | | |
|
New Vehicle
| |
$
|
6,782,389
| | |
$
|
5,639,381
| | |
20.3
|
%
|
|
Used Vehicle
| | |
3,747,236
| | | |
3,238,152
| | |
15.7
|
%
|
|
Finance and Insurance, Net
| | |
322,567
| | | |
270,579
| | |
19.2
|
%
|
|
Service and Parts
| | |
1,446,729
| | | |
1,329,064
| | |
8.9
|
%
|
|
Fleet, Wholesale and Other
| |
|
864,596
|
| |
|
650,316
|
| |
33.0
|
%
|
|
Total Revenues
| |
$
|
13,163,517
| | |
$
|
11,127,492
| | |
18.3
|
%
|
|
Cost of Sales:
| | | | | | |
|
New Vehicle
| |
$
|
6,233,338
| | |
$
|
5,169,968
| | |
20.6
|
%
|
|
Used Vehicle
| | |
3,462,908
| | | |
2,984,267
| | |
16.0
|
%
|
|
Service and Parts
| | |
603,682
| | | |
566,380
| | |
6.6
|
%
|
|
Fleet, Wholesale and Other
| |
|
850,641
|
| |
|
645,055
|
| |
31.9
|
%
|
|
Total Cost of Sales
| | |
11,150,569
| | | |
9,365,670
| | |
19.1
|
%
|
|
Gross Profit
| | |
2,012,948
| | | |
1,761,822
| | |
14.3
|
%
|
|
SG&A Expenses
| | |
1,594,095
| | | |
1,419,123
| | |
12.3
|
%
|
|
Depreciation
| |
|
53,995
|
| |
|
47,101
|
| |
14.6
|
%
|
|
Operating Income
| | |
364,858
| | | |
295,598
| | |
23.4
|
%
|
|
Floor Plan Interest Expense
| | |
(38,797
|
)
| | |
(27,218
|
)
| |
42.5
|
%
|
|
Other Interest Expense
| | |
(46,892
|
)
| | |
(44,256
|
)
| |
6.0
|
%
|
|
Equity in Earnings of Affiliates
| | |
27,572
| | | |
25,451
| | |
8.3
|
%
|
|
Debt Redemption Costs
| | |
(17,753
|
)
| | |
---
| | |
nm
|
|
Debt Discount Amortization
| |
|
---
|
| |
|
(1,718
|
)
| |
nm
|
|
Income from Continuing Operations Before Income Taxes
| | |
288,988
| | | |
247,857
| | |
16.6
|
%
|
|
Income Taxes
| |
|
(94,330
|
)
| |
|
(71,690
|
)
| |
31.6
|
%
|
|
Income from Continuing Operations
| | |
194,658
| | | |
176,167
| | |
10.5
|
%
|
|
(Loss) Income from Discontinued Operations, Net of Tax
| |
|
(7,491
|
)
| |
|
2,091
|
| |
nm
|
|
Net Income
| | |
187,167
| | | |
178,258
| | |
5.0
|
%
|
|
Less: Income Attributable to Non-Controlling Interests
| |
|
(1,627
|
)
| |
|
(1,377
|
)
| |
18.2
|
%
|
|
Net Income Attributable to Common Shareholders
| |
$
|
185,540
|
| |
$
|
176,881
|
| |
4.9
|
%
|
|
Income from Continuing Operations Per Share
| |
$
|
2.14
|
| |
$
|
1.92
|
| |
11.5
|
%
|
|
Income Per Share
| |
$
|
2.05
|
| |
$
|
1.94
|
| |
5.7
|
%
|
|
Weighted Average Shares Outstanding
| |
|
90,342
|
| |
|
91,274
|
| |
(1.0
|
%)
|
| Amounts Attributable to Common Shareholders: | | | | | | |
|
Reported Income from Continuing Operations
| |
$
|
194,658
| | |
$
|
176,167
| | |
10.5
|
%
|
|
Less: Income Attributable to Non-Controlling Interests
| |
|
(1,627
|
)
| |
|
(1,377
|
)
| |
18.2
|
%
|
|
Income from Continuing Operations, net of tax
| |
$
|
193,031
| | |
$
|
174,790
| | |
10.4
|
%
|
|
(Loss) Income from Discontinued Operations, net of tax
| |
|
(7,491
|
)
| |
|
2,091
|
| |
nm
|
|
Net Income
| |
$
|
185,540
|
| |
$
|
176,881
|
| |
4.9
|
%
|
nm = not meaningful
|
| |
PENSKE AUTOMOTIVE GROUP, INC. |
Selected Data
|
(Unaudited)
|
| |
|
| | Twelve Months Ended |
| | December 31, |
| | |
| |
| % Increase/ |
| | 2012 | | 2011 | | (Decrease) |
|
Total Retail Units:
| | | | | | |
|
New Retail
| | |
180,764
| | | |
149,068
| | |
21.3
|
%
|
|
Used Retail
| |
|
145,580
|
| |
|
121,501
|
| |
19.8
|
%
|
|
Total Retail
| |
|
326,344
|
| |
|
270,569
|
| |
20.6
|
%
|
| | | | | |
|
|
Same-Store Retail Units:
| | | | | | |
|
New Same-Store Retail
| | |
162,901
| | | |
144,289
| | |
12.9
|
%
|
|
Used Same-Store Retail
| |
|
131,987
|
| |
|
118,295
|
| |
11.6
|
%
|
|
Total Same-Store Retail
| |
|
294,888
|
| |
|
262,584
|
| |
12.3
|
%
|
| | | | | |
|
|
Same-Store Retail Revenue: (Amounts in thousands)
| | | | | | |
|
New Vehicles
| |
$
|
6,121,846
| | |
$
|
5,434,368
| | |
12.7
|
%
|
|
Used Vehicles
| | |
3,421,430
| | | |
3,161,317
| | |
8.2
|
%
|
|
Finance and Insurance, Net
| | |
298,785
| | | |
263,534
| | |
13.4
|
%
|
|
Service and Parts
| |
|
1,315,925
|
| |
|
1,289,767
|
| |
2.0
|
%
|
|
Total Same-Store Retail
| |
$
|
11,157,986
|
| |
$
|
10,148,986
|
| |
9.9
|
%
|
| | | | | |
|
|
Revenue Mix:
| | | | | | |
|
New Vehicles
| | |
51.5
|
%
| | |
50.7
|
%
| |
80 bps
|
|
Used Vehicles
| | |
28.5
|
%
| | |
29.1
|
%
| |
(60 bps)
|
|
Finance and Insurance, Net
| | |
2.5
|
%
| | |
2.4
|
%
| |
10 bps
|
|
Service and Parts
| | |
11.0
|
%
| | |
11.9
|
%
| |
(90 bps)
|
|
Fleet, Wholesale and Other
| | |
6.5
|
%
| | |
5.9
|
%
| |
60 bps
|
| | | | | |
|
|
Average Revenue per Vehicle Retailed:
| | | | | | |
|
New Vehicles
| |
$
|
37,521
| | |
$
|
37,831
| | |
(0.8
|
%)
|
|
Used Vehicles
| | |
25,740
| | | |
26,651
| | |
(3.4
|
%)
|
| | | | | |
|
|
Gross Profit per Vehicle Retailed:
| | | | | | |
|
New Vehicles
| |
$
|
3,037
| | |
$
|
3,149
| | |
(3.5
|
%)
|
|
Used Vehicles
| | |
1,953
| | | |
2,089
| | |
(6.5
|
%)
|
|
Finance and Insurance
| | |
988
| | | |
1,000
| | |
(1.2
|
%)
|
| | | | | |
|
|
Operating items as a percentage of revenue:
| | | | | | |
|
New Vehicle Gross Profit
| | |
8.1
|
%
| | |
8.3
|
%
| |
(20 bps)
|
|
Used Vehicle Gross Profit
| | |
7.6
|
%
| | |
7.8
|
%
| |
(20 bps)
|
|
Service and Parts Gross Profit
| | |
58.3
|
%
| | |
57.4
|
%
| |
90 bps
|
|
Total Gross Profit
| | |
15.3
|
%
| | |
15.8
|
%
| |
(50 bps)
|
|
Selling, General and Admin. Expenses
| | |
12.1
|
%
| | |
12.8
|
%
| |
(70 bps)
|
|
Operating Income
| | |
2.8
|
%
| | |
2.7
|
%
| |
10 bps
|
|
Inc. From Cont. Ops. Before Inc. Taxes
| | |
2.2
|
%
| | |
2.2
|
%
| |
---
| |
| | | | | |
|
|
Operating items as a percentage of total gross profit:
| | | | | | |
|
Selling, General and Administrative Expenses
| | |
79.2
|
%
| | |
80.5
|
%
| |
(130 bps)
|
|
Operating Income
| | |
18.1
|
%
| | |
16.8
|
%
| |
130 bps
|
|
| |
PENSKE AUTOMOTIVE GROUP, INC. |
Selected Data (Continued)
|
(Unaudited)
|
| |
|
| | Twelve Months Ended |
| | December 31, |
| | |
| |
| % Increase/ |
| | 2012 | | 2011 | | (Decrease) |
| | | | | |
|
|
Other (Amounts in Thousands):
| | | | | | |
|
EBITDA *
| |
$
|
389,875
| |
$
|
340,932
| |
14.4
|
%
|
|
Adjusted EBITDA *
| | |
407,628
| | |
340,932
| |
19.6
|
%
|
|
Rent Expense
| | |
173,280
| | |
165,346
| |
4.8
|
%
|
|
Floorplan Credits
| | |
22,976
| | |
19,703
| |
16.6
|
%
|
* See the following Non-GAAP reconciliation tables
|
| |
| |
PENSKE AUTOMOTIVE GROUP, INC. |
Selected Data
|
Brand Revenue Mix
|
(Unaudited)
|
| | | |
|
| | Three Months Ended | | Twelve Months Ended |
| | December 31, | | December 31, |
| | 2012 |
| 2011 | | 2012 |
| 2011 |
|
Brand Revenue Mix:
| | | | | | | | |
|
Premium:
| | | | | | | | |
|
BMW
| |
28
|
%
| |
25
|
%
| |
26
|
%
| |
24
|
%
|
|
Audi
| |
12
|
%
| |
12
|
%
| |
12
|
%
| |
12
|
%
|
| Mercedes-Benz | |
11
|
%
| |
12
|
%
| |
11
|
%
| |
11
|
%
|
| Lexus | |
4
|
%
| |
4
|
%
| |
4
|
%
| |
4
|
%
|
| Land Rover | |
4
|
%
| |
5
|
%
| |
4
|
%
| |
4
|
%
|
|
Porsche
| |
5
|
%
| |
4
|
%
| |
4
|
%
| |
5
|
%
|
| Ferrari / Maserati | |
3
|
%
| |
3
|
%
| |
3
|
%
| |
3
|
%
|
| Acura | |
1
|
%
| |
2
|
%
| |
2
|
%
| |
2
|
%
|
|
Other
| |
4
|
%
| |
4
|
%
| |
4
|
%
| |
5
|
%
|
|
Total Premium
| |
72
|
%
| |
71
|
%
| |
70
|
%
| |
70
|
%
|
|
Foreign:
| | | | | | | | |
|
Toyota
| |
10
|
%
| |
10
|
%
| |
10
|
%
| |
10
|
%
|
|
Honda
| |
9
|
%
| |
10
|
%
| |
11
|
%
| |
11
|
%
|
|
Nissan
| |
1
|
%
| |
2
|
%
| |
1
|
%
| |
2
|
%
|
|
Volkswagen
| |
2
|
%
| |
2
|
%
| |
2
|
%
| |
2
|
%
|
|
Other
| |
2
|
%
| |
1
|
%
| |
2
|
%
| |
1
|
%
|
|
Total Foreign
| |
24
|
%
| |
25
|
%
| |
26
|
%
| |
26
|
%
|
|
Domestic Big 3
| | | | | | | | |
|
General Motors / Chrysler / Ford
| |
4
|
%
| |
4
|
%
| |
4
|
%
| |
4
|
%
|
| | | | | | | |
|
|
Revenue Mix:
| | | | | | | | |
|
U.S.
| |
67
|
%
| |
68
|
%
| |
64
|
%
| |
64
|
%
|
|
International
| |
33
|
%
| |
32
|
%
| |
36
|
%
| |
36
|
%
|
|
| |
| |
| PENSKE AUTOMOTIVE GROUP, INC. |
|
Non-GAAP Reconciliation
|
|
(Unaudited)
|
| | | |
|
| | Income | | Earnings Per Share |
| | Twelve Months Ended | | Twelve Months Ended |
| | December 31, | | December 31, |
| | 2012 |
| 2011 |
| | | 2012 |
| 2011 |
| |
| | | | | | | | | | | |
|
|
Income from Continuing Operations net of tax and Earnings per Share
| |
$
|
193.0
| |
$
|
174.8
| | | | |
$
|
2.14
| |
$
|
1.92
| | | |
|
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
| |
$
|
206.0
| |
$
|
163.8
|
| |
25.8
|
%
| |
$
|
2.28
| |
$
|
1.80
|
| |
26.7
|
%
|
|
(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 |
| | December 31, |
| | |
| |
| % Increase/ |
|
(Amounts in Thousands)
| |
| 2012 | |
| 2011 |
| | (Decrease) |
| | | | | |
|
|
Net Income
| |
$
|
49,236
| |
$
|
48,157
| | |
2.2
|
%
|
|
Depreciation
| | |
14,140
| | |
12,141
| | |
16.5
|
%
|
|
Other Interest Expense
| | |
11,656
| | |
11,657
| | |
---
| |
|
Income Taxes
| | |
24,726
| | |
22,373
| | |
10.5
|
%
|
|
Loss (income) from Discontinued Operations, net
| |
|
2,446
| |
|
(4,988
|
)
| |
nm
|
|
EBITDA
| |
$
|
102,204
| |
$
|
89,340
|
| |
14.4
|
%
|
|
| |
| | Twelve Months Ended |
| | December 31, |
| | |
| |
| % Increase/ |
|
(Amounts in Thousands)
| | 2012 | | 2011 | | (Decrease) |
| | | | | |
|
|
Net Income
| |
$
|
187,167
| |
$
|
178,258
| | |
5.0
|
%
|
|
Depreciation
| | |
53,995
| | |
47,101
| | |
14.6
|
%
|
|
Other Interest Expense
| | |
46,892
| | |
44,256
| | |
6.0
|
%
|
|
Debt Discount Amortization
| | |
---
| | |
1,718
| | |
nm
|
|
Income Taxes
| | |
94,330
| | |
71,690
| | |
31.6
|
%
|
|
Loss (income) from Discontinued Operations, net
| |
|
7,491
| |
|
(2,091
|
)
| |
nm
|
|
EBITDA
| |
$
|
389,875
| |
$
|
340,932
| | |
14.4
|
%
|
|
Add back: Debt Redemption Costs
| |
|
17,753
| |
|
---
|
| |
nm
|
|
Adjusted EBITDA
| |
$
|
407,628
| |
$
|
340,932
|
| |
19.6
|
%
|
nm = not meaningful
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
Source: Penske Automotive Group, Inc.