EX-99.1 2 pag-20190730ex9919e7616.htm EX-99.1 Exhibit 99_1

 

 

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Penske Automotive Group, Inc.
2555 Telegraph Road
Bloomfield Hills, MI 48302-0954

 

 

FOR IMMEDIATE RELEASE

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PENSKE AUTOMOTIVE REPORTS SECOND QUARTER 2019 RESULTS

 

U.K. Market Conditions and BREXIT Impact Second Quarter Results 

 

Income From Continuing Operations of $117.7 million and Related Earnings Per Share of $1.42

 

Acquires Warner Truck Centers - Expected to Add $1.1 Billion in Annualized Revenues

 

1.7 Million Shares Repurchased During Second Quarter

 

 

BLOOMFIELD HILLS, MI, July 30, 2019 –  Penske Automotive Group, Inc. (NYSE:PAG), a diversified international transportation services company,  today announced second quarter and six months 2019 results, and the acquisition of Warner Truck Centers, which is expected to add over $1.1 billion in annualized revenues. For the three months ended June 30, 2019,  the company reported income from continuing operations attributable to common shareholders of $117.7 million, or $1.42 per share, compared to $134.6 million, or $1.58 per share in the prior year. 

Chairman Roger Penske said, “Our U.S. retail automotive, North American commercial truck dealership business, and investment in Penske Truck Leasing each performed very well during the second quarter. However, weak market conditions in the U.K. from BREXIT and the timing of customer deliveries in Australia impacted second quarter results. During the second quarter, new vehicle registrations in the U.K. market declined approximately 5%, including a nearly 7% decline in private/retail registrations, which significantly impacted our new vehicle sales volume. Additionally, an over-supply of used vehicles in the U.K. market negatively impacted used vehicle market values and our margins. As a result, the company’s second quarter results were negatively impacted by approximately 16 cents per share, including foreign exchange.” Penske continued, “As the U.K. continues to address Brexit we have implemented cost saving initiatives which are expected to help mitigate further weakness in the U.K. market.”

 

 

 

 

 

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Commercial Truck Dealership Acquisition

In July 2019, the company’s Premier Truck Group subsidiary acquired Warner Truck Centers (www.warnertc.com), a retailer of Freightliner and Western Star medium and heavy-duty commercial trucks located in Utah and Idaho.

Warner Truck Centers consist of six dealership locations, including a flagship operation in Salt Lake City, Utah. “This is an outstanding acquisition for our business and our customers, further solidifying our relationship with Daimler Trucks North America,” said Premier Truck Group President Richard Shearing. “Warner Truck Centers operate within key transportation corridors across the central northern U.S. market, providing our business with additional scale and leverage opportunities through an expanded footprint now representing 25 dealerships.”

Roger Penske, Penske Automotive Group Chair and CEO, said, “We welcome Warner Truck Centers to the Penske team. The acquisition of Warner Truck Centers nearly doubles our retail commercial truck dealership revenue and enhances the company’s diversification while providing the opportunity for future growth and increased profitability.”

Automotive Retail Second Quarter

·

Same-Store Retail Unit Sales -4.4% to 125,951

 

Ø

New unit retail sales -9.0%, Used unit retail sales -0.5%

 

·

Same-Store Retail Revenue -4.6%; Excluding Foreign Exchange -2.1%

 

Ø

New -8.3%; Excluding Foreign Exchange -6.2%

 

Ø

Used -1.9%; Excluding Foreign Exchange +1.2%

 

Ø

Finance & Insurance +2.3%; Excluding Foreign Exchange +5.0%

 

Ø

Service & Parts +1.0%; Excluding Foreign Exchange +3.1%

 

·

Same-Store Average Gross Profit Per Unit 

 

Ø

New $3,133, +$18/unit; Excluding Foreign Exchange $3,216,  +$101/unit

 

Ø

Used $1,406, -$140/unit; Excluding Foreign Exchange $1,445,  -$101/unit

 

Ø

Finance & Insurance $1,302, +$85/unit; Excluding Foreign Exchange $1,336,  +$119/unit

 

For the six months ended June 30, 2019, the company reported income from continuing operations attributable to common shareholders of $217.8 million, or $2.60 per share, compared to $242.6 million, or $2.84 per share in the prior year. Foreign exchange rates negatively impacted earnings per share attributable to common shareholders by $0.07.

 

 

 

 

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Used Supercenter Operations

For the three months ended June 30, 2019, the used supercenters retailed 17,775 used units and generated $312.1 million in revenue compared to retail unit sales of 18,832 and revenue of $346.7 million in the same period last year.  The second quarter unit decline is mainly attributable to market conditions and the decline in used vehicle market values in the U.K. For the six months ended June 30, 2019, the used supercenters retailed 35,815 used units and generated $626.5 million in revenue compared to retail unit sales of 37,505 and revenue of $677.8 million in the same period last year. 

Retail Commercial Truck Operations

For the three months ended June 30, 2019, total medium and heavy-duty units retailed increased 23.2%, and revenue increased 26.0% to $426.8 million. For the six months ended June 30, 2019,  total medium and heavy-duty truck units retailed increased  16.9% and revenue increased 20.3% to $759.1 million. Same-store revenue increased 26.1% and 19.7% for the three and six months ended June 30, 2019, 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. The company accounts for its ownership interest in PTL using the equity method of accounting. For the three and six months ended June 30, 2019, the company recorded $38.0 million and $63.8 million in earnings from this investment compared to $35.0 million and $51.0 million for the same periods last year, respectively.

Dividend and Share Repurchases

On July 17, 2019, the company announced that its Board of Directors increased the dividend to its common stock shareholders to $0.40 per share, the 33rd consecutive increase in the quarterly dividend.

During the three months ended June 30, 2019, the company repurchased 1,706,866 shares for $76.2 million, or an average of $44.66 per share. For the six months ended June 30, 2019, the company repurchased 2,965,214 shares for $130.6 million, or an average of $44.03 per share.  As of June 30, 2019, the company had  a remaining share repurchase authorization of approximately $74.4 million.

Conference Call

Penske Automotive Group will host a conference call discussing financial results relating to the second quarter of 2019 on Tuesday,  July 30, 2019, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (800) 230‑1085 – [International, please dial (612) 288‑0329]. The call will also be simultaneously broadcast over the Internet through the Investor’s section of the Penske Automotive Group website. Additionally, an investor presentation relating to the second quarter 2019 

 

 

 

 

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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  27,000 people worldwide and is a member of the Fortune 500, Russell 1000, and Russell 3000 indexes, 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 product availability, 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, changes in interest rates and foreign currency exchange rates, changes in tariff rates, adverse impacts related to the outcome of the United Kingdom’s potential departure from the European Union, adverse conditions affecting a particular manufacturer, including the adverse impact to the vehicle and parts supply chain due to limited vehicle availability due to WLTP, natural disasters, recall or other disruptions that interrupt the supply of vehicles or parts to us, changes in consumer credit availability, the

 

 

 

 

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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, 2018, 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

Anthony R. Pordon

Executive Vice President and

Executive Vice President Investor Relations

Chief Financial Officer

and Corporate Development

Penske Automotive Group, Inc.

Penske Automotive Group, Inc.

248-648-2810

248-648-2540

jcarlson@penskeautomotive.com

tpordon@penskeautomotive.com

 

# # #

 

 

 

 

 

 

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PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Statements of Income

 (Amounts In Millions, Except Per Share Data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Revenue

 

$

5,755.8

 

$

5,940.3

 

(3.1)

%  

 

 

$

11,320.2

 

$

11,687.2

 

(3.1)

%  

Cost of Sales

 

 

4,888.0

 

 

5,050.5

 

(3.2)

%  

 

 

 

9,600.9

 

 

9,933.0

 

(3.3)

%  

Gross Profit

 

$

867.8

 

$

889.8

 

(2.5)

%  

 

 

$

1,719.3

 

$

1,754.2

 

(2.0)

%  

SG&A Expenses

 

 

668.9

 

 

675.4

 

(1.0)

%  

 

 

 

1,335.3

 

 

1,338.5

 

(0.2)

%  

Depreciation

 

 

27.1

 

 

25.7

 

5.4

%  

 

 

 

53.5

 

 

51.3

 

4.3

%  

Operating Income

 

$

171.8

 

$

188.7

 

(9.0)

%  

 

 

$

330.5

 

$

364.4

 

(9.3)

%  

Floor Plan Interest Expense

 

 

(21.0)

 

 

(19.9)

 

5.5

%  

 

 

 

(42.8)

 

 

(38.8)

 

10.3

%  

Other Interest Expense

 

 

(30.4)

 

 

(28.6)

 

6.3

%  

 

 

 

(60.3)

 

 

(58.4)

 

3.3

%  

Equity in Earnings of Affiliates

 

 

39.5

 

 

36.0

 

9.7

%  

 

 

 

66.3

 

 

53.3

 

24.4

%  

Income from Continuing Operations Before Income Taxes

 

$

159.9

 

$

176.2

 

(9.3)

%  

 

 

$

293.7

 

$

320.5

 

(8.4)

%  

Income Taxes

 

 

(41.5)

 

 

(41.0)

 

1.2

%  

 

 

 

(76.2)

 

 

(77.6)

 

(1.8)

%  

Income from Continuing Operations

 

$

118.4

 

$

135.2

 

(12.4)

%  

 

 

$

217.5

 

$

242.9

 

(10.5)

%  

Income from Discontinued Operations, net of tax

 

 

0.1

 

 

 —

 

nm

 

 

 

 

0.2

 

 

0.1

 

nm

 

Net Income

 

$

118.5

 

$

135.2

 

(12.4)

%  

 

 

$

217.7

 

$

243.0

 

(10.4)

%  

Less: Income (Loss) Attributable to Non-Controlling Interests

 

 

0.7

 

 

0.6

 

nm

 

 

 

 

(0.3)

 

 

0.3

 

nm

 

Net Income Attributable to Common Shareholders

 

$

117.8

 

$

134.6

 

(12.5)

%  

 

 

$

218.0

 

$

242.7

 

(10.2)

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts Attributable to Common Shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported Income from Continuing Operations

 

$

118.4

 

$

135.2

 

(12.4)

%  

 

 

$

217.5

 

$

242.9

 

(10.5)

%  

Less: Income (Loss) Attributable to Non-Controlling Interests

 

 

0.7

 

 

0.6

 

nm

 

 

 

 

(0.3)

 

 

0.3

 

nm

 

Income from Continuing Operations, net of tax

 

$

117.7

 

$

134.6

 

(12.6)

%  

 

 

$

217.8

 

$

242.6

 

(10.2)

%  

Income from Discontinued Operations, net of tax

 

 

0.1

 

 

 —

 

nm

 

 

 

 

0.2

 

 

0.1

 

nm

 

Net Income Attributable to Common Shareholders

 

$

117.8

 

$

134.6

 

(12.5)

%  

 

 

$

218.0

 

$

242.7

 

(10.2)

%  

Income from Continuing Operations Per Share

 

$

1.42

 

$

1.58

 

(10.1)

%  

 

 

$

2.60

 

$

2.84

 

(8.5)

%  

Income Per Share

 

$

1.42

 

$

1.58

 

(10.1)

%  

 

 

$

2.61

 

$

2.84

 

(8.1)

%  

Weighted Average Shares Outstanding

 

 

82.9

 

 

85.0

 

(2.5)

%  

 

 

 

83.7

 

 

85.5

 

(2.1)

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

nm – not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Balance Sheets

(Amounts In Millions)

(Unaudited)

 

 

 

 

 

 

 

 

    

June 30,

    

December 31,

 

 

2019

 

2018

Assets:

 

 

 

 

 

 

Cash and Cash Equivalents

 

$

43.8

 

$

39.4

Accounts Receivable, Net

 

 

944.4

 

 

929.1

Inventories

 

 

3,978.0

 

 

4,040.1

Other Current Assets

 

 

109.1

 

 

86.6

Total Current Assets

 

 

5,075.3

 

 

5,095.2

Property and Equipment, Net

 

 

2,308.9

 

 

2,250.0

Operating Lease Right-of-Use Assets

 

 

2,380.9

 

 

 —

Intangibles

 

 

2,235.0

 

 

2,238.2

Other Long-Term Assets

 

 

1,361.0

 

 

1,321.1

Total Assets

 

$

13,361.1

 

$

10,904.5

 

 

 

 

 

 

 

Liabilities and Equity:

 

 

 

 

 

 

Floor Plan Notes Payable

 

$

2,350.3

 

$

2,362.2

Floor Plan Notes Payable – Non-Trade

 

 

1,435.5

 

 

1,428.6

Accounts Payable

 

 

638.5

 

 

598.2

Accrued Expenses and Other Current Liabilities

 

 

651.8

 

 

566.6

Current Portion Long-Term Debt

 

 

93.3

 

 

92.0

Liabilities Held for Sale

 

 

0.5

 

 

0.7

Total Current Liabilities

 

 

5,169.9

 

 

5,048.3

Long-Term Debt

 

 

2,134.2

 

 

2,124.7

Long-Term Operating Lease Liabilities

 

 

2,330.3

 

 

 —

Other Long-Term Liabilities

 

 

1,065.7

 

 

1,096.8

Total Liabilities

 

 

10,700.1

 

 

8,269.8

Equity

 

 

2,661.0

 

 

2,634.7

Total Liabilities and Equity

 

$

13,361.1

 

$

10,904.5

 

 

 

 

 

 

 

Supplemental Balance Sheet Information

 

 

 

 

 

 

New vehicle days' supply

 

 
78

 

 
72

Used vehicle days' supply

 

 
47

 

 
57

 

 

 

 

 

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PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Operations

Selected Data

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

    

2019

    

2018

    

2019

    

2018

 

Geographic Revenue Mix:

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

57.9

%  

 

55.4

%  

 

56.4

%  

 

54.2

%

U.K.

 

 

33.5

%  

 

35.5

%  

 

35.1

%  

 

36.8

%

Other International

 

 

8.6

%  

 

9.1

%  

 

8.5

%  

 

9.0

%

Total

 

 

100.0

%  

 

100.0

%  

 

100.0

%  

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue: (Amounts in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive

 

$

5,196.3

 

$

5,455.5

 

$

10,287.5

 

$

10,751.5

 

Retail Commercial Trucks

 

 

426.8

 

 

338.8

 

 

759.1

 

 

631.2

 

Commercial Vehicles Australia/Power Systems and Other

 

 

132.7

 

 

146.0

 

 

273.6

 

 

304.5

 

Total

 

$

5,755.8

 

$

5,940.3

 

$

11,320.2

 

$

11,687.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit: (Amounts in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive

 

$

774.9

 

$

798.0

 

$

1,536.4

 

$

1,576.3

 

Retail Commercial Trucks

 

 

58.5

 

 

52.4

 

 

112.9

 

 

99.0

 

Commercial Vehicles Australia/Power Systems and Other

 

 

34.4

 

 

39.4

 

 

70.0

 

 

78.9

 

Total

 

$

867.8

 

$

889.8

 

$

1,719.3

 

$

1,754.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive

 

 

14.9

%  

 

14.6

%  

 

14.9

%  

 

14.7

%

Retail Commercial Trucks

 

 

13.7

%  

 

15.5

%

 

14.9

%  

 

15.7

%

Commercial Vehicles Australia/Power Systems and Other

 

 

25.9

%  

 

27.0

%  

 

25.6

%  

 

25.9

%

Total

 

 

15.1

%  

 

15.0

%  

 

15.2

%  

 

15.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

    

 

    

 

    

 

 

    

 

    

 

 

2019

 

2018

 

 

2019

 

2018

 

Operating Items as a Percentage of Revenue:

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

15.1

%  

15.0

%  

 

15.2

%  

15.0

%  

Selling, General and Administrative Expenses

 

11.6

%  

11.4

%  

 

11.8

%  

11.5

%  

Operating Income

 

3.0

%  

3.2

%  

 

2.9

%  

3.1

%  

Income from Continuing Operations Before Income Taxes

 

2.8

%  

3.0

%  

 

2.6

%  

2.7

%  

 

 

 

 

 

 

 

 

 

 

 

Operating Items as a Percentage of Total Gross Profit:

 

 

 

 

 

 

 

 

 

 

Selling, General and Administrative Expenses

 

77.1

%  

75.9

%  

 

77.7

%  

76.3

%  

Operating Income

 

19.8

%  

21.2

%  

 

19.2

%  

20.8

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

    

 

 

    

 

 

    

 

 

 

    

 

 

    

(Amounts in Millions)

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA*

 

$

217.4

 

$

230.5

 

 

$

407.5

 

$

430.2

 

Floorplan Credits

 

$

9.1

 

$

10.3

 

 

$

17.6

 

$

18.8

 

Rent Expense

 

$

57.9

 

$

59.0

 

 

$

115.1

 

$

116.9

 

Capital Expenditures

 

$

71.4

 

$

54.1

 

 

$

134.5

 

$

118.8

 

Stock Repurchases

 

$

76.2

 

$

5.8

 

 

$

130.6

 

$

55.8

 

* See the following Non-GAAP reconciliation table.

 

 

 

 

 

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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,

 

 

    

2019

    

2018

    

2019

    

2018

 

Retail Automotive Revenue Mix:

 

 

 

 

 

 

 

 

 

Premium:

 

 

 

 

 

 

 

 

 

BMW / MINI

 

23

%  

23

%  

23

%  

22

%

Audi

 

12

%  

13

%  

12

%  

14

%

Mercedes-Benz

 

10

%  

 9

%  

10

%  

 9

%

Land Rover / Jaguar

 

 9

%  

 9

%  

 9

%  

 9

%

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

%  

 2

%  

 2

%  

 2

%

Total Premium

 

70

%  

70

%  

70

%  

70

%

Volume Non-U.S.:

 

 

 

 

 

 

 

 

 

Toyota

 

10

%  

 9

%  

10

%  

 9

%

Honda

 

 7

%  

 7

%  

 6

%  

 6

%

Volkswagen

 

 4

%  

 4

%  

 4

%  

 4

%

Nissan

 

 1

%  

 1

%  

 1

%  

 1

%

Others

 

 1

%  

 1

%  

 2

%  

 2

%

Total Volume Non-U.S.

 

23

%  

22

%  

23

%  

22

%

U.S.:

 

 

 

 

 

 

 

 

 

General Motors / Chrysler / Ford

 

 1

%  

 2

%  

 1

%  

 2

%

Stand-Alone Used

 

 6

%  

 6

%  

 6

%  

 6

%

Total

 

100

%  

100

%  

100

%  

100

%

 

 

 

 

 

 

 

 

 

 

Retail Automotive Geographic Revenue Mix:

 

 

 

 

 

 

 

 

 

U.S.

 

56

%  

54

%  

55

%  

53

%

U.K.

 

37

%  

39

%  

38

%  

40

%

Other International

 

 7

%  

 7

%  

 7

%  

 7

%

Total

 

100

%  

100

%  

100

%  

100

%

 

 

 

 

 

 

 

 

 

 

Retail Automotive Geographic Gross Profit Mix:

 

 

 

 

 

 

 

 

 

U.S.

 

61

%  

59

%  

59

%  

58

%

U.K.

 

33

%  

35

%  

35

%  

36

%

Other International

 

 6

%  

 6

%  

 6

%  

 6

%

Total

 

100

%  

100

%  

100

%  

100

%

 

 

 

 

 

 

9

C:\Users\109186\Desktop\Capture1.PNG

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

    

2019

    

2018

 

Change

    

    

2019

    

2018

 

Change

Retail Automotive Units:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Retail

 

 

55,146

 

 

61,071

 

(9.7)

%  

 

 

 

109,516

 

 

120,333

 

(9.0)

%  

Used Retail

 

 

72,066

 

 

73,143

 

(1.5)

%  

 

 

 

144,810

 

 

146,371

 

(1.1)

%  

Total

 

 

127,212

 

 

134,214

 

(5.2)

%  

 

 

 

254,326

 

 

266,704

 

(4.6)

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Revenue: (Amounts in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

2,310.4

 

$

2,528.6

 

(8.6)

%  

 

 

$

4,541.6

 

$

4,975.4

 

(8.7)

%  

Used Vehicles

 

 

1,852.7

 

 

1,896.9

 

(2.3)

%  

 

 

 

3,704.7

 

 

3,763.7

 

(1.6)

%  

Finance and Insurance, Net

 

 

165.5

 

 

162.9

 

1.6

%  

 

 

 

325.5

 

 

323.7

 

0.6

%  

Service and Parts

 

 

550.7

 

 

547.8

 

0.5

%  

 

 

 

1,110.5

 

 

1,091.3

 

1.8

%  

Fleet and Wholesale

 

 

317.0

 

 

319.3

 

(0.7)

%  

 

 

 

605.2

 

 

597.4

 

1.3

%  

Total Revenue

 

$

5,196.3

 

$

5,455.5

 

(4.8)

%  

 

 

$

10,287.5

 

$

10,751.5

 

(4.3)

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Gross Profit: (Amounts in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

174.8

 

$

189.8

 

(7.9)

%  

 

 

$

347.5

 

$

373.0

 

(6.8)

%  

Used Vehicles

 

 

101.6

 

 

112.5

 

(9.7)

%  

 

 

 

194.5

 

 

222.2

 

(12.5)

%  

Finance and Insurance, Net

 

 

165.5

 

 

162.9

 

1.6

%  

 

 

 

325.5

 

 

323.7

 

0.6

%  

Service and Parts

 

 

328.3

 

 

328.2

 

0.0

%  

 

 

 

659.7

 

 

646.3

 

2.1

%  

Fleet and Wholesale

 

 

4.7

 

 

4.6

 

2.2

%  

 

 

 

9.2

 

 

11.1

 

(17.1)

%  

Total Gross Profit

 

$

774.9

 

$

798.0

 

(2.9)

%  

 

 

$

1,536.4

 

$

1,576.3

 

(2.5)

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Revenue Per Vehicle Retailed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

41,896

 

$

41,404

 

1.2

%  

 

 

$

41,470

 

$

41,347

 

0.3

%  

Used Vehicles

 

 

25,708

 

 

25,934

 

(0.9)

%  

 

 

 

25,583

 

 

25,713

 

(0.5)

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Gross Profit Per Vehicle Retailed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

3,170

 

$

3,109

 

2.0

%  

 

 

$

3,173

 

$

3,100

 

2.4

%  

Used Vehicles

 

 

1,410

 

 

1,538

 

(8.3)

%  

 

 

 

1,343

 

 

1,518

 

(11.5)

%  

Finance and Insurance

 

 

1,301

 

 

1,213

 

7.3

%  

 

 

 

1,280

 

 

1,213

 

5.5

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Gross Margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

 

7.6

%  

 

7.5

%  

 +10

bps

 

 

 

7.7

%  

 

7.5

%  

 +20

bps

Used Vehicles

 

 

5.5

%  

 

5.9

%  

 -40 

bps

 

 

 

5.3

%  

 

5.9

%  

 -60 

bps

Service and Parts

 

 

59.6

%  

 

59.9

%  

 -30 

bps

 

 

 

59.4

%  

 

59.2

%  

 +20

bps

Fleet and Wholesale

 

 

1.5

%  

 

1.4

%  

 +10

bps

 

 

 

1.5

%  

 

1.9

%  

 -40 

bps

Total Gross Margin

 

 

14.9

%  

 

14.6

%  

 +30

bps

 

 

 

14.9

%  

 

14.7

%  

 +20

bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Revenue Mix Percentages:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

 

44.5

%  

 

46.3

%  

 -180 

bps

 

 

 

44.1

%  

 

46.3

%

 -220 

bps

Used Vehicles

 

 

35.7

%  

 

34.8

%  

 +90

bps

 

 

 

36.0

%  

 

35.0

%

 +100

bps

Finance and Insurance, Net

 

 

3.2

%  

 

3.0

%  

 +20

bps

 

 

 

3.2

%  

 

3.0

%

 +20

bps

Service and Parts

 

 

10.6

%  

 

10.0

%  

 +60

bps

 

 

 

10.8

%  

 

10.2

%

 +60

bps

Fleet and Wholesale

 

 

6.0

%  

 

5.9

%  

 +10

bps

 

 

 

5.9

%  

 

5.5

%

 +40

bps

Total

 

 

100.0

%  

 

100.0

%  

 

 

 

 

 

100.0

%  

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Gross Profit Mix Percentages:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

 

22.6

%  

 

23.8

%  

 -120 

bps

 

 

 

22.6

%  

 

23.7

%

 -110 

bps

Used Vehicles

 

 

13.1

%  

 

14.1

%  

 -100 

bps

 

 

 

12.7

%  

 

14.1

%

 -140 

bps

Finance and Insurance, Net

 

 

21.4

%  

 

20.4

%  

 +100

bps

 

 

 

21.2

%  

 

20.5

%

 +70

bps

Service and Parts

 

 

42.4

%  

 

41.1

%  

 +130

bps

 

 

 

42.9

%  

 

41.0

%

 +190

bps

Fleet and Wholesale

 

 

0.5

%  

 

0.6

%  

 -10 

bps

 

 

 

0.6

%  

 

0.7

%

 -10 

bps

Total

 

 

100.0

%  

 

100.0

%  

 

 

 

 

 

100.0

%  

 

100.0

%

 

 

 

 

 

 

10

C:\Users\109186\Desktop\Capture1.PNG

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations Same-Store

 (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

    

2019

    

2018

 

Change

    

    

2019

    

2018

 

Change

Retail Automotive Same-Store Units:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Retail

 

 

54,540

 

 

59,938

 

(9.0)

%  

 

 

 

107,166

 

 

117,529

 

(8.8)

%  

Used Retail

 

 

71,411

 

 

71,804

 

(0.5)

%  

 

 

 

142,657

 

 

143,151

 

(0.3)

%  

Total

 

 

125,951

 

 

131,742

 

(4.4)

%  

 

 

 

249,823

 

 

260,680

 

(4.2)

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

2,273.1

 

$

2,479.3

 

(8.3)

%  

 

 

$

4,427.4

 

$

4,861.1

 

(8.9)

%  

Used Vehicles

 

 

1,833.7

 

 

1,869.0

 

(1.9)

%  

 

 

 

3,650.0

 

 

3,697.3

 

(1.3)

%  

Finance and Insurance, Net

 

 

164.0

 

 

160.3

 

2.3

%  

 

 

 

321.0

 

 

318.1

 

0.9

%  

Service and Parts

 

 

541.9

 

 

536.5

 

1.0

%  

 

 

 

1,086.3

 

 

1,065.1

 

2.0

%  

Fleet and Wholesale

 

 

312.6

 

 

315.1

 

(0.8)

%  

 

 

 

589.2

 

 

583.2

 

1.0

%  

Total Revenue

 

$

5,125.3

 

$

5,360.2

 

(4.4)

%  

 

 

$

10,073.9

 

$

10,524.8

 

(4.3)

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

170.9

 

$

186.7

 

(8.5)

%  

 

 

$

337.2

 

$

365.6

 

(7.8)

%  

Used Vehicles

 

 

100.4

 

 

111.0

 

(9.5)

%  

 

 

 

194.0

 

 

218.8

 

(11.3)

%  

Finance and Insurance, Net

 

 

164.0

 

 

160.3

 

2.3

%  

 

 

 

321.0

 

 

318.1

 

0.9

%  

Service and Parts

 

 

323.2

 

 

321.9

 

0.4

%  

 

 

 

645.2

 

 

630.8

 

2.3

%  

Fleet and Wholesale

 

 

4.5

 

 

4.3

 

4.7

%  

 

 

 

8.9

 

 

11.0

 

(19.1)

%  

Total Gross Profit

 

$

763.0

 

$

784.2

 

(2.7)

%  

 

 

$

1,506.3

 

$

1,544.3

 

(2.5)

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Same-Store Revenue Per Vehicle Retailed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

41,678

 

$

41,365

 

0.8

%  

 

 

$

41,314

 

$

41,360

 

(0.1)

%  

Used Vehicles

 

 

25,678

 

 

26,029

 

(1.3)

%  

 

 

 

25,586

 

 

25,828

 

(0.9)

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Same-Store Gross Profit Per Vehicle Retailed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

3,133

 

$

3,115

 

0.6

%  

 

 

$

3,146

 

$

3,111

 

1.1

%  

Used Vehicles

 

 

1,406

 

 

1,546

 

(9.1)

%  

 

 

 

1,360

 

 

1,529

 

(11.1)

%  

Finance and Insurance

 

 

1,302

 

 

1,217

 

7.0

%  

 

 

 

1,285

 

 

1,220

 

5.3

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Same-Store Gross Margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

 

7.5

%  

 

7.5

%  

---

bps

 

 

 

7.6

%  

 

7.5

%  

 +10

bps

Used Vehicles

 

 

5.5

%  

 

5.9

%  

 -40 

bps

 

 

 

5.3

%  

 

5.9

%  

 -60 

bps

Service and Parts

 

 

59.6

%  

 

60.0

%  

 -40 

bps

 

 

 

59.4

%  

 

59.2

%  

 +20

bps

Fleet and Wholesale

 

 

1.4

%  

 

1.4

%  

---

bps

 

 

 

1.5

%  

 

1.9

%  

 -40 

bps

Total Gross Margin

 

 

14.9

%  

 

14.6

%  

 +30

bps

 

 

 

15.0

%  

 

14.7

%  

 +30

bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Revenue Mix Percentages:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

 

44.4

%  

 

46.3

%  

 -190 

bps

 

 

 

43.9

%  

 

46.2

%  

 -230 

bps

Used Vehicles

 

 

35.8

%  

 

34.9

%  

 +90

bps

 

 

 

36.2

%  

 

35.1

%

 +110

bps

Finance and Insurance, Net

 

 

3.2

%  

 

3.0

%  

 +20

bps

 

 

 

3.2

%  

 

3.0

%

 +20

bps

Service and Parts

 

 

10.6

%  

 

10.0

%  

 +60

bps

 

 

 

10.8

%  

 

10.1

%

 +70

bps

Fleet and Wholesale

 

 

6.0

%  

 

5.8

%  

 +20

bps

 

 

 

5.9

%  

 

5.6

%

 +30

bps

Total

 

 

100.0

%  

 

100.0

%  

 

 

 

 

 

100.0

%  

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Automotive Gross Profit Mix Percentages:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

 

22.4

%  

 

23.8

%  

 -140 

bps

 

 

 

22.4

%  

 

23.7

%  

 -130 

bps

Used Vehicles

 

 

13.2

%  

 

14.2

%  

 -100 

bps

 

 

 

12.9

%  

 

14.2

%

 -130 

bps

Finance and Insurance, Net

 

 

21.5

%  

 

20.4

%  

 +110

bps

 

 

 

21.3

%  

 

20.6

%

 +70

bps

Service and Parts

 

 

42.4

%  

 

41.0

%  

 +140

bps

 

 

 

42.8

%  

 

40.8

%

 +200

bps

Fleet and Wholesale

 

 

0.5

%  

 

0.6

%  

 -10 

bps

 

 

 

0.6

%  

 

0.7

%

 -10 

bps

Total

 

 

100.0

%  

 

100.0

%  

 

 

 

 

 

100.0

%  

 

100.0

%

 

 

 

 

 

 

11

C:\Users\109186\Desktop\Capture1.PNG

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Commercial Truck Operations

 (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

    

2019

    

2018

 

Change

    

    

2019

    

2018

 

Change

Retail Commercial Truck Units:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Retail

 

 

2,647

 

 

2,021

 

31.0

%  

 

 

 

4,534

 

 

3,676

 

23.3

%  

Used Retail

 

 

441

 

 

486

 

(9.3)

%  

 

 

 

857

 

 

937

 

(8.5)

%  

Total

 

 

3,088

 

 

2,507

 

23.2

%  

 

 

 

5,391

 

 

4,613

 

16.9

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Commercial Truck Revenue: (Amounts in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

296.0

 

$

210.7

 

40.5

%  

 

 

$

503.4

 

$

381.1

 

32.1

%  

Used Vehicles

 

 

27.6

 

 

27.3

 

1.1

%  

 

 

 

51.7

 

 

53.8

 

(3.9)

%  

Finance and Insurance, Net

 

 

2.9

 

 

3.6

 

(19.4)

%  

 

 

 

5.9

 

 

6.8

 

(13.2)

%  

Service and Parts

 

 

94.6

 

 

92.2

 

2.6

%  

 

 

 

186.1

 

 

182.6

 

1.9

%  

Other

 

 

5.7

 

 

5.0

 

14.0

%  

 

 

 

12.0

 

 

6.9

 

73.9

%  

Total Revenue

 

$

426.8

 

$

338.8

 

26.0

%  

 

 

$

759.1

 

$

631.2

 

20.3

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Commercial Truck Gross Profit: (Amounts in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

11.8

 

$

9.5

 

24.2

%  

 

 

$

22.0

 

$

16.2

 

35.8

%  

Used Vehicles

 

 

2.9

 

 

3.1

 

(6.5)

%  

 

 

 

5.6

 

 

5.8

 

(3.4)

%  

Finance and Insurance, Net

 

 

2.9

 

 

3.6

 

(19.4)

%  

 

 

 

5.9

 

 

6.8

 

(13.2)

%  

Service and Parts

 

 

37.3

 

 

35.9

 

3.9

%  

 

 

 

73.4

 

 

69.9

 

5.0

%  

Other

 

 

3.6

 

 

0.3

 

nm

 

 

 

 

6.0

 

 

0.3

 

nm

 

Total Gross Profit

 

$

58.5

 

$

52.4

 

11.6

%  

 

 

$

112.9

 

$

99.0

 

14.0

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Commercial Truck Revenue Per Vehicle Retailed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

111,818

 

$

104,263

 

7.2

%  

 

 

$

111,014

 

$

103,685

 

7.1

%  

Used Vehicles

 

 

62,693

 

 

56,175

 

11.6

%  

 

 

 

60,430

 

 

57,394

 

5.3

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Commercial Truck Gross Profit Per Vehicle Retailed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

4,461

 

$

4,673

 

(4.5)

%  

 

 

$

4,848

 

$

4,400

 

10.2

%  

Used Vehicles

 

 

6,575

 

 

6,469

 

1.6

%  

 

 

 

6,566

 

 

6,161

 

6.6

%  

Finance and Insurance

 

 

926

 

 

1,301

 

(28.8)

%  

 

 

 

1,090

 

 

1,337

 

(18.5)

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Commercial Truck Gross Margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

 

4.0

%  

 

4.5

%  

 -50 

bps

 

 

 

4.4

%  

 

4.3

%

 +10

bps

Used Vehicles

 

 

10.5

%  

 

11.4

%  

 -90 

bps

 

 

 

10.8

%  

 

10.8

%

---

bps

Service and Parts

 

 

39.4

%  

 

38.9

%  

 +50

bps

 

 

 

39.4

%  

 

38.3

%

 +110

bps

Total Gross Margin

 

 

13.7

%  

 

15.5

%  

 -180 

bps

 

 

 

14.9

%  

 

15.7

%

 -80 

bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Commercial Truck Revenue Mix Percentages:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

 

69.4

%  

 

62.2

%  

 +720

bps

 

 

 

66.3

%  

 

60.4

%  

 +590

bps

Used Vehicles

 

 

6.5

%  

 

8.1

%  

 -160 

bps

 

 

 

6.8

%  

 

8.5

%

 -170 

bps

Finance and Insurance, Net

 

 

0.7

%  

 

1.1

%  

 -40 

bps

 

 

 

0.8

%  

 

1.1

%

 -30 

bps

Service and Parts

 

 

22.2

%  

 

27.2

%  

 -500 

bps

 

 

 

24.5

%  

 

28.9

%

 -440 

bps

Other

 

 

1.2

%  

 

1.4

%  

 -20 

bps

 

 

 

1.6

%  

 

1.1

%

 +50

bps

Total

 

 

100.0

%  

 

100.0

%  

 

 

 

 

 

100.0

%  

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Commercial Truck Gross Profit Mix Percentages:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

 

20.2

%  

 

18.1

%  

 +210

bps

 

 

 

19.5

%  

 

16.4

%  

 +310

bps

Used Vehicles

 

 

5.0

%  

 

5.9

%  

 -90 

bps

 

 

 

5.0

%  

 

5.9

%

 -90 

bps

Finance and Insurance, Net

 

 

5.0

%  

 

6.9

%  

 -190 

bps

 

 

 

5.2

%  

 

6.9

%

 -170 

bps

Service and Parts

 

 

63.8

%  

 

68.5

%  

 -470 

bps

 

 

 

65.0

%  

 

70.6

%

 -560 

bps

Other

 

 

6.0

%  

 

0.6

%  

 +540

bps

 

 

 

5.3

%  

 

0.2

%

 +510

bps

Total

 

 

100.0

%  

 

100.0

%  

 

 

 

 

 

100.0

%  

 

100.0

%

 

 

 

 

 

 

12

C:\Users\109186\Desktop\Capture1.PNG

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Commercial Truck Operations Same-Store

 (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

    

2019

    

2018

 

Change

    

    

2019

    

2018

 

Change

Retail Commercial Truck Same-Store Units:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Retail

 

 

2,647

 

 

2,021

 

31.0

%  

 

 

 

4,465

 

 

3,646

 

22.5

%  

Used Retail

 

 

441

 

 

486

 

(9.3)

%  

 

 

 

846

 

 

936

 

(9.6)

%  

Total

 

 

3,088

 

 

2,507

 

23.2

%  

 

 

 

5,311

 

 

4,582

 

15.9

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Commercial Truck Same-Store Revenue: (Amounts in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

296.0

 

$

210.7

 

40.5

%  

 

 

$

495.2

 

$

377.5

 

31.2

%  

Used Vehicles

 

 

27.6

 

 

27.3

 

1.1

%  

 

 

 

51.4

 

 

53.7

 

(4.3)

%  

Finance and Insurance, Net

 

 

2.9

 

 

3.6

 

(19.4)

%  

 

 

 

5.8

 

 

6.1

 

(4.9)

%  

Service and Parts

 

 

94.6

 

 

91.8

 

3.1

%  

 

 

 

184.1

 

 

180.5

 

2.0

%  

Other

 

 

5.7

 

 

5.0

 

14.0

%  

 

 

 

12.0

 

 

7.6

 

57.9

%  

Total Revenue

 

$

426.8

 

$

338.4

 

26.1

%  

 

 

$

748.5

 

$

625.4

 

19.7

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

11.8

 

$

9.5

 

24.2

%  

 

 

$

21.4

 

$

15.9

 

34.6

%  

Used Vehicles

 

 

2.9

 

 

3.1

 

(6.5)

%  

 

 

 

5.6

 

 

5.8

 

(3.4)

%  

Finance and Insurance, Net

 

 

2.9

 

 

3.6

 

(19.4)

%  

 

 

 

5.8

 

 

6.1

 

(4.9)

%  

Service and Parts

 

 

37.3

 

 

35.7

 

4.5

%  

 

 

 

72.6

 

 

69.1

 

5.1

%  

Other

 

 

3.6

 

 

0.2

 

nm

 

 

 

 

5.8

 

 

0.9

 

nm

 

Total Gross Profit

 

$

58.5

 

$

52.1

 

12.3

%  

 

 

$

111.2

 

$

97.8

 

13.7

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Commercial Truck Same-Store Revenue Per Vehicle Retailed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

111,818

 

$

104,263

 

7.2

%  

 

 

$

110,909

 

$

103,545

 

7.1

%  

Used Vehicles

 

 

62,693

 

 

56,175

 

11.6

%  

 

 

 

60,721

 

 

57,390

 

5.8

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Commercial Truck Same-Store Gross Profit Per Vehicle Retailed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

$

4,461

 

$

4,673

 

(4.5)

%  

 

 

$

4,786

 

$

4,358

 

9.8

%  

Used Vehicles

 

 

6,575

 

 

6,469

 

1.6

%  

 

 

 

6,580

 

 

6,148

 

7.0

%  

Finance and Insurance

 

 

926

 

 

1,301

 

(28.8)

%  

 

 

 

1,097

 

 

1,337

 

(18.0)

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Commercial Truck Same-Store Gross Margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

 

4.0

%  

 

4.5

%  

 -50 

bps

 

 

 

4.3

%  

 

4.2

%

 +10

bps

Used Vehicles

 

 

10.5

%  

 

11.4

%  

 -90 

bps

 

 

 

10.9

%  

 

10.8

%

 +10

bps

Service and Parts

 

 

39.4

%  

 

38.9

%  

 +50

bps

 

 

 

39.4

%  

 

38.3

%

 +110

bps

Total Gross Margin

 

 

13.7

%  

 

15.4

%  

 -170 

bps

 

 

 

14.9

%  

 

15.6

%

 -70 

bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Commercial Truck Revenue Mix Percentages:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

 

69.3

%  

 

62.3

%  

 +700

bps

 

 

 

66.2

%  

 

60.4

%  

 +580

bps

Used Vehicles

 

 

6.4

%  

 

8.1

%  

 -170 

bps

 

 

 

6.9

%  

 

8.6

%  

 -170 

bps

Finance and Insurance, Net

 

 

0.7

%  

 

1.1

%  

 -40 

bps

 

 

 

0.8

%  

 

1.0

%  

 -20 

bps

Service and Parts

 

 

22.2

%  

 

27.1

%  

 -490 

bps

 

 

 

24.6

%  

 

28.9

%  

 -430 

bps

Other

 

 

1.4

%  

 

1.4

%  

 +0

bps

 

 

 

1.5

%  

 

1.1

%  

 +40

bps

Total

 

 

100.0

%  

 

100.0

%  

 

 

 

 

 

100.0

%  

 

100.0

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Commercial Truck Gross Profit Mix Percentages:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Vehicles

 

 

20.2

%  

 

18.2

%  

 +200

bps

 

 

 

19.2

%  

 

16.3

%  

 +290

bps

Used Vehicles

 

 

5.0

%  

 

6.0

%  

 -100 

bps

 

 

 

5.0

%  

 

5.9

%  

 -90 

bps

Finance and Insurance, Net

 

 

5.0

%  

 

6.9

%  

 -190 

bps

 

 

 

5.2

%  

 

6.2

%  

 -100 

bps

Service and Parts

 

 

63.8

%  

 

68.6

%  

 -480 

bps

 

 

 

65.3

%  

 

70.7

%  

 -540 

bps

Other

 

 

6.0

%  

 

0.3

%  

 +570

bps

 

 

 

5.3

%  

 

0.9

%  

 +440

bps

Total

 

 

100.0

%  

 

100.0

%  

 

 

 

 

 

100.0

%  

 

100.0

%  

 

 

 

 

 

 

13

C:\Users\109186\Desktop\Capture1.PNG

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Non-GAAP Reconciliations

(Unaudited)

The following tables reconcile reported net income to earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the three and six months ended June 30, 2019 and 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

June 30,

 

2019 vs. 2018

(Amounts in Millions)

 

2019

 

2018

 

Change

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

118.5

 

$

135.2

 

$

(16.7)

 

(12.4)

%

Add: Depreciation

 

 

27.1

 

 

25.7

 

 

1.4

 

5.4

%

Other Interest Expense

 

 

30.4

 

 

28.6

 

 

1.8

 

6.3

%

Income Taxes

 

 

41.5

 

 

41.0

 

 

0.5

 

1.2

%

Income from Discontinued Operations, net of tax

 

 

(0.1)

 

 

 —

 

 

(0.1)

 

 —

 

EBITDA

 

$

217.4

 

$

230.5

 

$

(13.1)

 

(5.7)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

 

 

 

 

 

June 30,

 

2019 vs. 2018

(Amounts in Millions)

 

2019

 

2018

 

Change

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

217.7

 

$

243.0

 

$

(25.3)

 

(10.4)

%

Add: Depreciation

 

 

53.5

 

 

51.3

 

 

2.2

 

4.3

%

Other Interest Expense

 

 

60.3

 

 

58.4

 

 

1.9

 

3.3

%

Income Taxes

 

 

76.2

 

 

77.6

 

 

(1.4)

 

(1.8)

%

(Income) Loss from Discontinued Operations, net of tax

 

 

(0.2)

 

 

(0.1)

 

 

(0.1)

 

nm

 

EBITDA

 

$

407.5

 

$

430.2

 

$

(22.7)

 

(5.3)

%

 

 

nm – not meaningful

 

 

# # # # # # #

 

 

 

 

 

14

C:\Users\109186\Desktop\Capture1.PNG