0001019849-20-000030.txt : 20200729 0001019849-20-000030.hdr.sgml : 20200729 20200729120353 ACCESSION NUMBER: 0001019849-20-000030 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 20 CONFORMED PERIOD OF REPORT: 20200729 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20200729 DATE AS OF CHANGE: 20200729 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PENSKE AUTOMOTIVE GROUP, INC. CENTRAL INDEX KEY: 0001019849 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-AUTO DEALERS & GASOLINE STATIONS [5500] IRS NUMBER: 223086739 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12297 FILM NUMBER: 201056419 BUSINESS ADDRESS: STREET 1: 2555 TELEGRAPH RD CITY: BLOOMFIELD HILLS STATE: MI ZIP: 48302-0954 BUSINESS PHONE: 248-648-2500 MAIL ADDRESS: STREET 1: 2555 TELEGRAPH RD CITY: BLOOMFIELD HILLS STATE: MI ZIP: 48302-0954 FORMER COMPANY: FORMER CONFORMED NAME: UNITED AUTO GROUP INC DATE OF NAME CHANGE: 19960726 8-K 1 pag-20200729x8k.htm 8-K
0001019849false00010198492020-07-292020-07-29

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported):

July 29, 2020

Penske Automotive Group, Inc.

(Exact name of registrant as specified in its charter)

Delaware

    

1-12297

    

22-3086739

(State or other jurisdiction

(Commission

(I.R.S. Employer

of incorporation)

File Number)

Identification No.)

2555 Telegraph Road, Bloomfield Hills,
Michigan

48302

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code:

248-648-2500

Not Applicable

Former name or former address, if changed since last report

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Voting Common Stock, par value $0.0001 per share

PAG

New York Stock Exchange

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 2.02 Results of Operations and Financial Condition.

On July 29, 2020, we issued a press release announcing our second quarter 2020 financial results and other information. A copy of the press release is furnished as Exhibit 99.1.

Item 7.01 Regulation FD Disclosure.

The following information is furnished pursuant to Item 7.01 “Regulation FD Disclosure.”

On July 29, 2020, we issued a press release announcing our second quarter 2020 financial results and other information. A copy of the press release is furnished as Exhibit 99.1.

Item 8.01 Other Events.

Investors and others should note that we announce material financial information using our company website (www.penskeautomotive.com), our investor relations website (investors.penskeautomotive.com), SEC filings, press releases, public conference calls and webcasts. Information about Penske Automotive, its business, and its results of operations may also be announced by posts on the following social media channels:

Penske Automotive’s Twitter feed (www.twitter.com/penskecarscorp)
Penske Automotive’s Facebook page (www.facebook.com/penskecars)
Penske Automotive’s Social website (www.penskesocial.com)

The information that we post on these social media channels could be deemed to be material information. As a result, we encourage investors, the media, and others interested in Penske Automotive to review the information that we post on these social media channels. These channels may be updated from time to time on Penske Automotive’s investor relations website.

Item 9.01 Financial Statements and Exhibits.

Exhibit 99.1     Press Release.

Exhibit Index

Exhibit No.

 

Description

99.1

 

Press Release.

104

Cover Page Interactive Data File (formatted as inline XBRL).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

    

Penske Automotive Group, Inc.

July 29, 2020

By:

/s/ Shane M. Spradlin

Name: Shane M. Spradlin

Title: Executive Vice President

EX-99.1 2 pag-20200729ex991b8a7fd.htm EX-99.1

Graphic

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

FOR IMMEDIATE RELEASE

Graphic Graphic Graphic Graphic Graphic

PENSKE AUTOMOTIVE REPORTS SECOND QUARTER 2020 RESULTS

Income From Continuing Operations of $45.0 million, and Related Earnings Per Share of $0.56

Liquidity of $1.2 Billion as of June 30

Will Repay $300 Million in Senior Subordinated Notes in August

BLOOMFIELD HILLS, MI, July 29, 2020 – Penske Automotive Group, Inc. (NYSE:PAG), a diversified international transportation services company, today announced second quarter and six months 2020 results. For the three months ended June 30, 2020, the company reported income from continuing operations attributable to common shareholders of $45.0 million, or $0.56 per share, compared to $117.7 million, or $1.42 per share in the prior year. Foreign exchange had no impact on earnings per share. Revenue was $3.7 billion compared to $5.8 billion in the same period last year.

Second quarter performance was highlighted by the company’s diversification, with retail commercial trucks and Penske Transportation Solutions offsetting the challenging automotive retail environment early in the second quarter. In April and May, many of our U.S. and Germany dealerships were impacted by shelter-in-place orders while operations in Italy, Spain, and the U.K. were closed. As a result, same-store new and used automotive retail unit sales declined 71% in April and 50% in May when compared to the same month last year. In June, as operations began to reopen, same-store new and used automotive retail unit sales decreased 1%.

Commenting on the company’s results, Chairman Roger Penske said, “The operating environment in the second quarter was one of the most challenging in memory. Since the COVID-19 pandemic began impacting operations, our teams took action to protect the safety of employees and customers, control costs, manage vehicle inventory, maximize gross profit and preserve liquidity. Through these actions, our business experienced sequential improvement from month to month in units retailed, service/parts gross profit and overall profitability. Penske continued, “Starting in late March, we furloughed approximately 15,000 employees, or 57% of the workforce. At the end of June approximately 14% of our employees remained on furlough. Additionally, we have reduced our workforce by approximately 8% as of June 30.”

1

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For the six months ended June 30, 2020, the company reported income from continuing operations attributable to common shareholders of $96.6 million, or $1.20 per share, compared to $217.8 million, or $2.60 per share in the prior year. Foreign exchange negatively impacted earnings per share by $0.01. Revenue was $8.7 billion compared to $11.3 billion in the same period last year.

Second Quarter 2020 Retail Automotive Operational Information

Same-store new vehicle gross/unit $3,462, +$286
Same-store used vehicle gross/unit $1,313, -$113
Same-store finance & insurance per unit $1,325, +$9
Same-store variable gross profit per unit $3,541, +$41

Liquidity

For the six months ended June 30, 2020, the company generated $784 million in cash flow from operations and free cash flow of $428 million (see non-GAAP reconciliation). As of June 30, 2020, the company’s balance sheet was strong with approximately $1.2 billion in liquidity, consisting of $159 million of cash, and over $1 billion of availability through revolving credit facilities. The company will repay the $300 million in senior subordinated notes due August 15, 2020, using availability under its U.S. credit agreement.

Used Vehicle SuperCenter Operations

Penske Automotive Group operates sixteen Used Vehicle SuperCenters in the U.S. and U.K. During April and May, operations at substantially all U.S. and U.K. Used Vehicle SuperCenters were closed due to shelter-in-place rules which drove a same-store unit sales decline of 61.0% in the U.S. and 100% in the U.K. However, beginning in June, as many shelter-in-place rules began to be lifted, sales of used units rebounded and profitability more than doubled when compared to the same period last year. For the three months ended June 30, 2020, SuperCenter unit sales decreased by 62.9% to 6,600 and revenue decreased by 57.5% to $132.6 million. For the six months ended June 30, 2020, SuperCenter unit sales decreased by 36.0% to 22,912 and revenue decreased by 30.1% to $438.1 million.

Retail Commercial Truck Operations

Penske Automotive Group operates twenty-five medium and heavy-duty truck dealership locations in the U.S. and Canada offering primarily Freightliner and Western Star brands. As an essential operation, during the second quarter our commercial truck business generally remained operational in most locations, although we reduced hours of operations and limited in-person sales where applicable. For the three months ended June 30, 2020, total units retailed were 2,836 and total revenue was $399 million, representing declines of approximately 8% and 7%, respectively. Same-store new units declined 52.2%

2

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and were in line with the 51.1% decline in North American Class 8 retail sales during the period. Same-store revenue declined 40.2%. For the six months ended June 30, 2020, total units retailed increased 17.7%, and revenue increased 17.3% to $890.6 million. Same-store new units retailed declined 31.4% which compares to North American Class 8 retail sales which declined 39.4% during the same period. Same-store revenue declined 23.4%.

Penske Transportation Solutions

Penske Transportation Solutions (“PTS”), is a leading provider of full-service truck leasing, truck rental, contract maintenance, and logistics services. The company has a 28.9% ownership interest in PTS and accounts for its ownership interest using the equity method of accounting. As an integral part of the North American supply chain, PTS has been generally classified as essential by governmental authorities. This has allowed PTS to remain operating in much of its business, providing crucial supply chain and transportation services to its customers. For the three and six months ended June 30, 2020, the company recorded $29.9 million and $43.5 million in earnings compared to $38.0 million and $63.8 million for the same period last year.

Dividend and Share Repurchases

On May 13, 2020, the company announced that its Board of Directors suspended its cash dividends to help mitigate the impact of COVID-19. The company estimated that the suspension of the dividend preserved approximately $34 million in cash during the second quarter.

For the six months ended June 30, 2020, the company repurchased 1,023,288 shares for $34.2 million. Approximately $170.6 million remains available to repurchase shares under the company’s existing share repurchase authorization.

Conference Call

Penske Automotive Group will host a conference call discussing financial results relating to the second quarter of 2020 on Wednesday, July 29, 2020, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (866) 394-1455 – [International, please dial (516) 575-8644] using access code 3229936. 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 2020 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, the United Kingdom, Canada, and Western Europe, and distributes

3

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commercial vehicles, diesel engines, gas engines, power systems and related parts and services principally in Australia and New Zealand. PAG is a member of the Fortune 500 and Russell 1000 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, amortization (“EBITDA”), and “Free Cash Flow.” 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 liquidity and assessment of business conditions in light of the COVID-19 pandemic. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others: the duration, severity and resolution of the COVID-19 pandemic, the number of employees returning from furlough, 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 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 the COVID-19 pandemic, WLTP and RDE, natural disasters, recall or other disruptions that interrupt the supply of vehicles or parts to us, changes in consumer credit availability, the outcome of legal and administrative matters, and other factors over which management has limited control. These forward-looking statements should be evaluated together with additional information about Penske Automotive Group’s business, markets, conditions, and other uncertainties, which could affect Penske Automotive Group’s future performance. These risks and uncertainties are addressed in Penske Automotive Group’s Form 10-K for the year ended December 31, 2019 and its other filings with the

4

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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

# # #

5

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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,

2020

2019

Change

2020

2019

Change

Revenue

$

3,651.1

$

5,755.8

 

(36.6)

%  

$

8,660.2

$

11,320.2

 

(23.5)

%  

Cost of Sales

 

3,098.2

 

4,888.0

 

(36.6)

%  

 

7,330.6

 

9,600.9

 

(23.6)

%  

Gross Profit

$

552.9

$

867.8

 

(36.3)

%  

$

1,329.6

$

1,719.3

 

(22.7)

%  

SG&A Expenses

 

453.6

 

668.9

 

(32.2)

%  

 

1,095.4

 

1,335.3

 

(18.0)

%  

Depreciation

 

27.9

 

27.1

 

3.0

%  

 

56.4

 

53.5

 

5.4

%  

Operating Income

$

71.4

$

171.8

 

(58.4)

%  

$

177.8

$

330.5

 

(46.2)

%  

Floor Plan Interest Expense

 

(11.7)

 

(21.0)

 

(44.3)

%  

 

(29.4)

 

(42.8)

 

(31.3)

%  

Other Interest Expense

 

(28.4)

 

(30.4)

 

(6.6)

%  

 

(60.1)

 

(60.3)

 

(0.3)

%  

Equity in Earnings of Affiliates

 

29.9

 

39.5

 

(24.3)

%  

 

44.4

 

66.3

 

(33.0)

%  

Income from Continuing Operations Before Income Taxes

$

61.2

$

159.9

 

(61.7)

%  

$

132.7

$

293.7

 

(54.8)

%  

Income Taxes

 

(16.5)

 

(41.5)

 

(60.2)

%  

 

(36.6)

 

(76.2)

 

(52.0)

%  

Income from Continuing Operations

$

44.7

$

118.4

 

(62.2)

%  

$

96.1

$

217.5

 

(55.8)

%  

Income from Discontinued Operations, net of tax

 

0.1

 

0.1

 

nm

 

0.2

 

0.2

 

nm

Net Income

$

44.8

$

118.5

 

(62.2)

%  

$

96.3

$

217.7

 

(55.8)

%  

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

 

(0.3)

 

0.7

 

nm

 

(0.5)

 

(0.3)

 

nm

Net Income Attributable to Common Shareholders

$

45.1

$

117.8

 

(61.7)

%  

$

96.8

$

218.0

 

(55.6)

%  

Amounts Attributable to Common Shareholders:

Reported Income from Continuing Operations

$

44.7

$

118.4

 

(62.2)

%  

$

96.1

$

217.5

 

(55.8)

%  

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

 

(0.3)

 

0.7

 

nm

 

(0.5)

 

(0.3)

 

nm

Income from Continuing Operations, net of tax

$

45.0

$

117.7

 

(61.8)

%  

$

96.6

$

217.8

 

(55.6)

%  

Income from Discontinued Operations, net of tax

 

0.1

 

0.1

 

nm

 

0.2

 

0.2

 

nm

Net Income Attributable to Common Shareholders

$

45.1

$

117.8

 

(61.7)

%  

$

96.8

$

218.0

 

(55.6)

%  

Income from Continuing Operations Per Share

$

0.56

$

1.42

 

(60.6)

%  

$

1.20

$

2.60

 

(53.8)

%  

Income Per Share

$

0.56

$

1.42

 

(60.6)

%  

$

1.20

$

2.61

 

(54.0)

%  

Weighted Average Shares Outstanding

 

80.5

 

82.9

 

(2.9)

%  

 

80.8

 

83.7

 

(3.5)

%  

nm – not meaningful

6

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PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Balance Sheets

(Amounts In Millions)

(Unaudited)

    

June 30,

    

December 31,

2020

2019

Assets:

Cash and Cash Equivalents

$

159.3

$

28.1

Accounts Receivable, Net

 

756.6

 

960.3

Inventories

 

3,425.9

 

4,260.7

Other Current Assets

 

76.6

 

85.0

Total Current Assets

 

4,418.4

 

5,334.1

Property and Equipment, Net

 

2,293.7

 

2,366.4

Operating Lease Right-of-Use Assets

 

2,311.1

 

2,360.5

Intangibles

 

2,423.7

 

2,463.2

Other Long-Term Assets

 

1,429.2

 

1,418.5

Total Assets

$

12,876.1

$

13,942.7

Liabilities and Equity:

Floor Plan Notes Payable

$

1,957.4

$

2,412.5

Floor Plan Notes Payable – Non-Trade

 

1,284.1

 

1,594.0

Accounts Payable

 

679.4

 

638.8

Accrued Expenses and Other Current Liabilities

 

684.8

 

701.9

Current Portion Long-Term Debt

 

83.3

 

103.3

Liabilities Held for Sale

 

0.5

 

0.5

Total Current Liabilities

 

4,689.5

 

5,451.0

Long-Term Debt

 

2,054.1

 

2,257.0

Long-Term Operating Lease Liabilities

 

2,252.6

 

2,301.2

Other Long-Term Liabilities

 

1,102.3

 

1,121.9

Total Liabilities

 

10,098.5

 

11,131.1

Equity

 

2,777.6

 

2,811.6

Total Liabilities and Equity

$

12,876.1

$

13,942.7

Supplemental Balance Sheet Information

New vehicle days' supply

76

71

Used vehicle days' supply

35

52

7

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PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Statements of Cash Flow

Amounts in Millions

(Unaudited)

Six Months Ended

June 30,

    

2020

    

2019

Operating Activities:

 

Net income

$

96.3

$

217.7

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

Depreciation

 

56.4

 

53.5

Earnings of equity method investments

 

(37.6)

 

(53.4)

Income from discontinued operations, net of tax

 

(0.2)

 

(0.2)

Deferred income taxes

 

20.8

 

29.7

Changes in operating assets and liabilities:

Accounts receivable

 

203.9

 

(15.2)

Inventories

 

827.3

 

35.5

Floor plan notes payable

 

(452.6)

 

15.0

Accounts payable and accrued expenses

 

35.5

 

55.3

Other

 

34.6

 

(33.3)

Net cash provided by continuing operating activities

 

784.4

 

304.6

Investing Activities:

Purchase of equipment and improvements

 

(76.8)

 

(134.5)

Proceeds from sale of dealerships

10.3

7.2

Proceeds from sale-leaseback transactions

7.3

Proceeds from sale of equipment and improvements

19.8

5.2

Acquisitions net, including repayment of sellers’ floor plan notes payable of $0 and $0, respectively

 

 

(1.1)

Other

(1.1)

(6.1)

Net cash used in continuing investing activities

 

(47.8)

 

(122.0)

Financing Activities:

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

 

580.0

 

821.0

Repayments under U.S. credit agreement revolving credit line

 

(625.0)

 

(851.0)

Net (repayments) borrowings of other long-term debt

 

(160.8)

 

39.8

Net (repayments) borrowings of floor plan notes payable — non-trade

 

(309.9)

 

6.8

Cash paid for seller financing

(21.1)

Repurchases of common stock

 

(29.4)

 

(130.6)

Dividends

 

(34.2)

 

(64.5)

Other

(4.8)

0.4

Net cash used in continuing financing activities

 

(605.2)

 

(178.1)

Discontinued operations:

Net cash provided by discontinued operating activities

 

0.1

 

Net cash provided by discontinued investing activities

 

 

Net cash provided by discontinued financing activities

 

 

Net cash provided by discontinued operations

 

0.1

 

Effect of exchange rate changes on cash and cash equivalents

(0.3)

(0.1)

Net change in cash and cash equivalents

 

131.2

 

4.4

Cash and cash equivalents, beginning of period

 

28.1

 

39.4

Cash and cash equivalents, end of period

$

159.3

$

43.8

Supplemental disclosures of cash flow information:

Cash paid for:

Interest

$

81.9

$

102.6

Income taxes

 

5.1

 

47.2

8

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PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Operations

Selected Data

(Unaudited)

Three Months Ended

Six Months Ended

 

June 30,

June 30,

 

    

2020

    

2019

    

2020

    

2019

 

Geographic Revenue Mix:

North America

 

67.2

%  

57.9

%  

62.3

%  

56.4

%

U.K.

 

22.9

%  

33.5

%  

28.9

%  

35.1

%

Other International

 

9.9

%  

8.6

%  

8.8

%  

8.5

%

Total

 

100.0

%  

100.0

%  

100.0

%  

100.0

%

Revenue: (Amounts in Millions)

Retail Automotive

$

3,153.5

$

5,196.3

$

7,570.1

$

10,287.5

Retail Commercial Trucks

 

399.2

 

426.8

 

890.6

 

759.1

Commercial Vehicles Australia/Power Systems and Other

 

98.4

 

132.7

 

199.5

 

273.6

Total

$

3,651.1

$

5,755.8

$

8,660.2

$

11,320.2

Gross Profit: (Amounts in Millions)

Retail Automotive

$

466.3

$

774.9

$

1,144.4

$

1,536.4

Retail Commercial Trucks

 

60.2

 

58.5

 

129.0

 

112.9

Commercial Vehicles Australia/Power Systems and Other

 

26.4

 

34.4

 

56.2

 

70.0

Total

$

552.9

$

867.8

$

1,329.6

$

1,719.3

Gross Margin:

Retail Automotive

 

14.8

%  

 

14.9

%  

 

15.1

%  

 

14.9

%

Retail Commercial Trucks

 

15.1

%  

 

13.7

%

 

14.5

%  

 

14.9

%

Commercial Vehicles Australia/Power Systems and Other

 

26.8

%  

 

25.9

%  

 

28.2

%  

 

25.6

%

Total

 

15.1

%  

 

15.1

%  

 

15.4

%  

 

15.2

%

Three Months Ended

Six Months Ended

June 30,

June 30,

    

    

    

    

    

2020

2019

2020

2019

Operating Items as a Percentage of Revenue:

Gross Profit

 

15.1

%  

15.1

%  

15.4

%  

15.2

%  

Selling, General and Administrative Expenses

 

12.4

%  

11.6

%  

12.6

%  

11.8

%  

Operating Income

 

2.0

%  

3.0

%  

2.1

%  

2.9

%  

Income from Continuing Operations Before Income Taxes

 

1.7

%  

2.8

%  

1.5

%  

2.6

%  

Operating Items as a Percentage of Total Gross Profit:

Selling, General and Administrative Expenses

 

82.0

%  

77.1

%  

82.4

%  

77.7

%  

Operating Income

 

12.9

%  

19.8

%  

13.4

%  

19.2

%  

Three Months Ended

Six Months Ended

June 30,

June 30,

    

    

    

    

    

(Amounts in Millions)

2020

2019

2020

2019

EBITDA (1)

$

117.5

$

217.4

 

$

249.2

$

407.5

 

Floorplan Credits

$

8.4

$

9.1

 

$

17.0

$

17.6

 

Rent Expense

$

56.5

$

57.9

 

$

114.4

$

115.1

 

Stock Repurchases (2)

$

4.8

$

76.2

 

$

34.2

$

130.6


(1)See the following Non-GAAP reconciliation table.

(2) During the second quarter of 2020, we acquired 133,093 shares of our common stock for $4.8 million from employees in connection with a net share settlement feature of employee equity awards.

9

Graphic


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,

 

    

2020

    

2019

    

2020

    

2019

 

Retail Automotive Revenue Mix:

Premium:

BMW / MINI

 

22

%  

23

%  

22

%  

23

%

Audi

 

13

%  

12

%  

13

%  

12

%

Mercedes-Benz

 

10

%  

10

%  

10

%  

10

%

Land Rover / Jaguar

 

8

%  

9

%  

9

%  

9

%

Porsche

 

7

%  

6

%  

7

%  

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

%  

71

%  

70

%

Volume Non-U.S.:

Toyota

 

12

%  

10

%  

11

%  

10

%

Honda

 

7

%  

7

%  

6

%  

6

%

Volkswagen

 

2

%  

4

%  

2

%  

4

%

Nissan

 

1

%  

1

%  

1

%  

1

%

Others

 

2

%  

1

%  

2

%  

2

%

Total Volume Non-U.S.

 

24

%  

23

%  

22

%  

23

%

U.S.:

General Motors / Chrysler / Ford

 

2

%  

1

%  

1

%  

1

%

Stand-Alone Used

4

%  

6

%  

6

%  

6

%

Total

 

100

%  

100

%  

100

%  

100

%

Retail Automotive Geographic Revenue Mix:

U.S.

 

65

%  

56

%  

60

%  

55

%

U.K.

 

27

%  

37

%  

33

%  

38

%

Other International

 

8

%  

7

%  

7

%  

7

%

Total

 

100

%  

100

%  

100

%  

100

%

Retail Automotive Geographic Gross Profit Mix:

U.S.

 

71

%  

61

%  

65

%  

59

%

U.K.

 

23

%  

33

%  

29

%  

35

%

Other International

 

6

%  

6

%  

6

%  

6

%

Total

 

100

%  

100

%  

100

%  

100

%

10

Graphic


PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

    

2020

    

2019

Change

    

    

2020

    

2019

 

Change

Retail Automotive Units:

New Retail

 

30,687

 

55,146

(44.4)

%  

 

 

73,874

 

109,516

(32.5)

%  

Used Retail

 

42,606

 

72,066

(40.9)

%  

 

 

105,656

 

144,810

(27.0)

%  

Total

 

73,293

 

127,212

(42.4)

%  

 

 

179,530

 

254,326

(29.4)

%  

Retail Automotive Revenue: (Amounts in Millions)

New Vehicles

$

1,384.7

$

2,310.4

(40.1)

%  

$

3,249.2

$

4,541.6

(28.5)

%  

Used Vehicles

 

1,166.0

 

1,852.7

(37.1)

%  

 

2,785.6

 

3,704.7

(24.8)

%  

Finance and Insurance, Net

 

97.1

 

165.5

(41.3)

%  

 

241.5

 

325.5

(25.8)

%  

Service and Parts

 

345.2

 

550.7

(37.3)

%  

 

858.5

 

1,110.5

(22.7)

%  

Fleet and Wholesale

 

160.5

 

317.0

(49.4)

%  

 

435.3

 

605.2

(28.1)

%  

Total Revenue

$

3,153.5

$

5,196.3

(39.3)

%  

$

7,570.1

$

10,287.5

(26.4)

%  

Retail Automotive Gross Profit: (Amounts in Millions)

New Vehicles

$

106.2

$

174.8

(39.2)

%  

$

244.8

$

347.5

(29.6)

%  

Used Vehicles

 

55.8

 

101.6

(45.1)

%  

 

141.7

 

194.5

(27.1)

%  

Finance and Insurance, Net

 

97.1

 

165.5

(41.3)

%  

 

241.5

 

325.5

(25.8)

%  

Service and Parts

 

201.2

 

328.3

(38.7)

%  

 

504.9

 

659.7

(23.5)

%  

Fleet and Wholesale

 

6.0

 

4.7

27.7

%  

 

11.5

 

9.2

25.0

%  

Total Gross Profit

$

466.3

$

774.9

(39.8)

%  

$

1,144.4

$

1,536.4

(25.5)

%  

Retail Automotive Revenue Per Vehicle Retailed:

New Vehicles

$

45,124

$

41,896

7.7

%  

$

43,983

$

41,470

6.1

%  

Used Vehicles

 

27,368

 

25,708

6.5

%  

 

26,365

 

25,583

3.1

%  

Retail Automotive Gross Profit Per Vehicle Retailed:

New Vehicles

$

3,462

$

3,170

9.2

%  

$

3,315

$

3,173

4.5

%  

Used Vehicles

 

1,310

 

1,410

(7.1)

%  

 

1,341

 

1,343

(0.1)

%  

Finance and Insurance

 

1,324

 

1,301

1.8

%  

 

1,345

 

1,280

5.1

%  

Retail Automotive Gross Margin:

New Vehicles

7.7

%  

7.6

%  

+10

bps

7.5

%  

7.7

%  

 -20 

bps

Used Vehicles

4.8

%  

5.5

%  

 -70 

bps

5.1

%  

5.3

%  

 -20 

bps

Service and Parts

58.3

%  

59.6

%  

 -130 

bps

58.8

%  

59.4

%  

 -60 

bps

Fleet and Wholesale

3.7

%  

1.5

%  

+220

bps

2.6

%  

1.5

%  

+110

bps

Total Gross Margin

14.8

%  

14.9

%  

 -10 

bps

15.1

%  

14.9

%  

+20

bps

Retail Automotive Revenue Mix Percentages:

New Vehicles

43.9

%  

44.5

%  

 -60 

bps

42.9

%  

44.1

%

 -120 

bps

Used Vehicles

37.0

%  

35.7

%  

+130

bps

36.8

%  

36.0

%

+80

bps

Finance and Insurance, Net

3.1

%  

3.2

%  

 -10 

bps

3.2

%  

3.2

%

---

bps

Service and Parts

10.9

%  

10.6

%  

+30

bps

11.3

%  

10.8

%

+50

bps

Fleet and Wholesale

5.1

%  

6.0

%  

 -90 

bps

5.8

%  

5.9

%

 -10 

bps

Total

100.0

%  

100.0

%  

100.0

%  

100.0

%

Retail Automotive Gross Profit Mix Percentages:

New Vehicles

22.8

%  

22.6

%  

+20

bps

21.4

%  

22.6

%

 -120 

bps

Used Vehicles

12.0

%  

13.1

%  

 -110 

bps

12.4

%  

12.7

%

 -30 

bps

Finance and Insurance, Net

20.8

%  

21.4

%  

 -60 

bps

21.1

%  

21.2

%

 -10 

bps

Service and Parts

43.1

%  

42.4

%  

+70

bps

44.1

%  

42.9

%

+120

bps

Fleet and Wholesale

1.3

%  

0.5

%  

+80

bps

1.0

%  

0.6

%

+40

bps

Total

100.0

%  

100.0

%  

100.0

%  

100.0

%

11

Graphic


PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations Same-Store

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

    

2020

    

2019

Change

    

    

2020

    

2019

 

Change

Retail Automotive Same-Store Units:

New Retail

 

30,687

 

53,614

(42.8)

%  

 

 

73,838

 

105,941

(30.3)

%  

Used Retail

 

42,229

 

70,217

(39.9)

%  

 

 

103,948

 

140,581

(26.1)

%  

Total

 

72,916

 

123,831

(41.1)

%  

 

 

177,786

 

246,522

(27.9)

%  

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

New Vehicles

$

1,384.7

$

2,262.5

(38.8)

%  

$

3,248.2

$

4,436.9

(26.8)

%  

Used Vehicles

 

1,159.6

 

1,812.0

(36.0)

%  

 

2,757.2

 

3,612.8

(23.7)

%  

Finance and Insurance, Net

 

96.6

 

163.0

(40.7)

%  

 

239.6

 

319.6

(25.0)

%  

Service and Parts

 

345.0

 

540.2

(36.1)

%  

 

857.6

 

1,086.5

(21.1)

%  

Fleet and Wholesale

 

159.9

 

309.8

(48.4)

%  

 

427.0

 

588.9

(27.5)

%  

Total Revenue

$

3,145.8

$

5,087.5

(38.2)

%  

$

7,529.6

$

10,044.7

(25.0)

%  

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

New Vehicles

$

106.2

$

170.3

(37.6)

%  

$

244.8

$

338.2

(27.6)

%  

Used Vehicles

 

55.4

 

100.1

(44.7)

%  

 

140.3

 

193.5

(27.5)

%  

Finance and Insurance, Net

 

96.6

 

163.0

(40.7)

%  

 

239.6

 

319.6

(25.0)

%  

Service and Parts

 

201.0

 

321.9

(37.6)

%  

 

504.1

 

645.4

(21.9)

%  

Fleet and Wholesale

 

6.0

 

4.8

25.0

%  

 

11.2

 

9.4

19.1

%  

Total Gross Profit

$

465.2

$

760.1

(38.8)

%  

$

1,140.0

$

1,506.1

(24.3)

%  

Retail Automotive Same-Store Revenue Per Vehicle Retailed:

New Vehicles

$

45,124

$

42,200

6.9

%  

$

43,991

$

41,881

5.0

%  

Used Vehicles

 

27,460

 

25,806

6.4

%  

 

26,525

 

25,699

3.2

%  

Retail Automotive Same-Store Gross Profit Per Vehicle Retailed:

New Vehicles

$

3,462

$

3,176

9.0

%  

$

3,315

$

3,193

3.8

%  

Used Vehicles

 

1,313

 

1,426

(7.9)

%  

 

1,350

 

1,376

(1.9)

%  

Finance and Insurance

 

1,325

 

1,316

0.7

%  

 

1,347

 

1,296

3.9

%  

Retail Automotive Same-Store Gross Margin:

New Vehicles

7.7

%  

7.5

%  

+20

bps

7.5

%  

7.6

%  

 -10 

bps

Used Vehicles

4.8

%  

5.5

%  

 -70 

bps

5.1

%  

5.4

%  

 -30 

bps

Service and Parts

58.3

%  

59.6

%  

 -130 

bps

58.8

%  

59.4

%  

 -60 

bps

Fleet and Wholesale

3.8

%  

1.5

%  

+230

bps

2.6

%  

1.6

%  

+100

bps

Total Gross Margin

14.8

%  

14.9

%  

 -10 

bps

15.1

%  

15.0

%  

+10

bps

Retail Automotive Revenue Mix Percentages:

New Vehicles

44.0

%  

44.5

%  

 -50 

bps

43.1

%  

44.2

%  

 -110 

bps

Used Vehicles

36.9

%  

35.6

%  

+130

bps

36.6

%  

36.0

%

+60

bps

Finance and Insurance, Net

3.1

%  

3.2

%  

 -10 

bps

3.2

%  

3.2

%

---

bps

Service and Parts

11.0

%  

10.6

%  

+40

bps

11.4

%  

10.8

%

+60

bps

Fleet and Wholesale

5.0

%  

6.1

%  

 -110 

bps

5.7

%  

5.8

%

 -10 

bps

Total

100.0

%  

100.0

%  

100.0

%  

100.0

%

Retail Automotive Gross Profit Mix Percentages:

New Vehicles

22.8

%  

22.4

%  

+40

bps

21.5

%  

22.5

%  

 -100 

bps

Used Vehicles

11.9

%  

13.2

%  

 -130 

bps

12.3

%  

12.8

%

 -50 

bps

Finance and Insurance, Net

20.8

%  

21.4

%  

 -60 

bps

21.0

%  

21.2

%

 -20 

bps

Service and Parts

43.2

%  

42.3

%  

+90

bps

44.2

%  

42.9

%

+130

bps

Fleet and Wholesale

1.3

%  

0.7

%  

+60

bps

1.0

%  

0.6

%

+40

bps

Total

100.0

%  

100.0

%  

100.0

%  

100.0

%

12

Graphic


PENSKE AUTOMOTIVE GROUP, INC.

Retail Commercial Truck Operations

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

    

2020

    

2019

Change

    

    

2020

    

2019

 

Change

Retail Commercial Truck Units:

New Retail

 

2,063

 

2,647

(22.1)

%  

 

 

4,874

 

4,534

7.5

%  

Used Retail

 

773

 

441

75.3

%  

 

 

1,471

 

857

71.6

%  

Total

 

2,836

 

3,088

(8.2)

%  

 

 

6,345

 

5,391

17.7

%  

Retail Commercial Truck Revenue: (Amounts in Millions)

New Vehicles

$

235.5

$

296.0

(20.4)

%  

$

553.8

$

503.4

10.0

%  

Used Vehicles

 

36.9

 

27.6

33.7

%  

 

71.5

 

51.7

38.3

%  

Finance and Insurance, Net

 

3.2

 

2.9

10.3

%  

 

6.4

 

5.9

8.5

%  

Service and Parts

 

111.6

 

94.6

18.0

%  

 

236.0

 

186.1

26.8

%  

Wholesale and Other

 

12.0

 

5.7

110.5

%  

 

22.9

 

12.0

90.8

%  

Total Revenue

$

399.2

$

426.8

(6.5)

%  

$

890.6

$

759.1

17.3

%  

Retail Commercial Truck Gross Profit: (Amounts in Millions)

New Vehicles

$

9.6

$

11.8

(18.6)

%  

$

22.1

$

22.0

0.5

%  

Used Vehicles

 

(2.9)

 

2.9

(200.0)

%  

 

(5.3)

 

5.6

(194.6)

%  

Finance and Insurance, Net

 

3.2

 

2.9

10.3

%  

 

6.4

 

5.9

8.5

%  

Service and Parts

 

49.2

 

37.3

31.9

%  

 

102.5

 

73.4

39.6

%  

Wholesale and Other

 

1.1

 

3.6

(69.4)

 

3.3

 

6.0

(45.0)

Total Gross Profit

$

60.2

$

58.5

2.9

%  

$

129.0

$

112.9

14.3

%  

Retail Commercial Truck Revenue Per Vehicle Retailed:

New Vehicles

$

114,176

$

111,818

2.1

%  

$

113,621

$

111,014

2.3

%  

Used Vehicles

 

47,721

 

62,693

(23.9)

%  

 

48,622

 

60,430

(19.5)

%  

Retail Commercial Truck Gross Profit Per Vehicle Retailed:

New Vehicles

$

4,640

$

4,461

4.0

%  

$

4,534

$

4,848

(6.5)

%  

Used Vehicles

 

(3,731)

 

6,575

(156.7)

%  

 

(3,626)

 

6,566

(155.2)

%  

Finance and Insurance

 

1,134

 

926

22.5

%  

 

1,008

 

1,090

(7.5)

%  

Retail Commercial Truck Gross Margin:

New Vehicles

4.1

%  

 

4.0

%  

+10

bps

4.0

%  

 

4.4

%

 -40 

bps

Used Vehicles

 

(7.9)

%  

 

10.5

%  

 -1,840 

bps

(7.4)

%  

 

10.8

%

 -1,820 

bps

Service and Parts

 

44.1

%  

 

39.4

%  

+470

bps

43.4

%  

 

39.4

%

+400

bps

Total Gross Margin

 

15.1

%  

 

13.7

%  

+140

bps

14.5

%  

 

14.9

%

 -40 

bps

Retail Commercial Truck Revenue Mix Percentages:

New Vehicles

59.0

%  

69.4

%  

 -1,040 

bps

62.2

%  

66.3

%  

 -410 

bps

Used Vehicles

9.2

%  

6.5

%  

+270

bps

8.0

%  

6.8

%

+120

bps

Finance and Insurance, Net

0.8

%  

0.7

%  

+10

bps

0.7

%  

0.8

%

 -10 

bps

Service and Parts

28.0

%  

22.2

%  

+580

bps

26.5

%  

24.5

%

+200

bps

Wholesale and Other

3.0

%  

1.2

%  

+180

bps

2.6

%  

1.6

%

+100

bps

Total

100.0

%  

100.0

%  

100.0

%  

100.0

%

Retail Commercial Truck Gross Profit Mix Percentages:

New Vehicles

15.9

%  

20.2

%  

 -430 

bps

17.1

%  

19.5

%  

 -240 

bps

Used Vehicles

(4.8)

%  

5.0

%  

 -980 

bps

(4.1)

%  

5.0

%

 -910 

bps

Finance and Insurance, Net

5.3

%  

5.0

%  

+30

bps

5.0

%  

5.2

%

 -20 

bps

Service and Parts

81.7

%  

63.8

%  

+1,790

bps

79.5

%  

65.0

%

+1,450

bps

Wholesale and Other

1.9

%  

6.0

%  

 -410 

bps

2.5

%  

5.3

%

 -280 

bps

Total

100.0

%  

100.0

%  

100.0

%  

100.0

%

13

Graphic


PENSKE AUTOMOTIVE GROUP, INC.

Retail Commercial Truck Operations Same-Store

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

    

2020

    

2019

Change

    

    

2020

    

2019

 

Change

Retail Commercial Truck Same-Store Units:

New Retail

 

1,265

 

2,647

(52.2)

%  

 

 

3,110

 

4,534

(31.4)

%  

Used Retail

 

503

 

441

14.1

%  

 

 

1,015

 

857

18.4

%  

Total

 

1,768

 

3,088

(42.7)

%  

 

 

4,125

 

5,391

(23.5)

%  

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

New Vehicles

$

149.1

$

296.0

(49.6)

%  

$

355.1

$

503.4

(29.5)

%  

Used Vehicles

 

24.1

 

27.6

(12.7)

%  

 

49.2

 

51.7

(4.8)

%  

Finance and Insurance, Net

 

2.5

 

2.9

(13.8)

%  

 

4.8

 

5.9

(18.6)

%  

Service and Parts

 

76.0

 

94.6

(19.7)

%  

 

162.1

 

185.8

(12.8)

%  

Wholesale and Other

 

3.5

 

5.7

(38.6)

%  

 

10.1

 

11.9

(15.1)

%  

Total Revenue

$

255.2

$

426.8

(40.2)

%  

$

581.3

$

758.7

(23.4)

%  

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

New Vehicles

$

5.9

$

11.8

(50.0)

%  

$

13.5

$

22.0

(38.6)

%  

Used Vehicles

 

(2.1)

 

2.9

(172.4)

%  

 

(3.0)

 

5.6

(153.6)

%  

Finance and Insurance, Net

 

2.5

 

2.9

(13.8)

%  

 

4.8

 

5.9

(18.6)

%  

Service and Parts

 

30.9

 

37.3

(17.2)

%  

 

65.4

 

73.3

(10.8)

%  

Wholesale and Other

 

1.9

 

3.5

(45.7)

%  

 

4.5

 

5.8

(22.4)

%  

Total Gross Profit

$

39.1

$

58.4

(33.0)

%  

$

85.2

$

112.6

(24.3)

%  

Retail Commercial Truck Same-Store Revenue Per Vehicle Retailed:

New Vehicles

$

117,892

$

111,818

5.4

%  

$

114,195

$

111,014

2.9

%  

Used Vehicles

 

47,938

 

62,693

(23.5)

%  

 

48,482

 

60,430

(19.8)

%  

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

New Vehicles

$

4,671

$

4,461

4.7

%  

$

4,342

$

4,848

(10.4)

%  

Used Vehicles

 

(4,235)

 

6,575

(164.4)

%  

 

(2,910)

 

6,566

(144.3)

%  

Finance and Insurance

 

1,387

 

926

49.8

%  

 

1,166

 

1,090

7.0

%  

Retail Commercial Truck Same-Store Gross Margin:

New Vehicles

4.0

%  

 

4.0

%  

---

bps

3.8

%  

 

4.4

%

 -60 

bps

Used Vehicles

 

(8.7)

%  

 

10.5

%  

 -1,920 

bps

(6.1)

%  

 

10.8

%

 -1,690 

bps

Service and Parts

 

40.7

%  

 

39.4

%  

+130

bps

40.3

%  

 

39.5

%

+80

bps

Total Gross Margin

 

15.3

%  

 

13.7

%  

+160

bps

14.7

%  

 

14.8

%

 -10 

bps

Retail Commercial Truck Revenue Mix Percentages:

New Vehicles

58.4

%  

69.4

%  

 -1,100 

bps

61.1

%  

66.4

%  

 -530 

bps

Used Vehicles

9.4

%  

6.5

%  

+290

bps

8.5

%  

6.8

%  

+170

bps

Finance and Insurance, Net

1.0

%  

0.7

%  

+30

bps

0.8

%  

0.8

%  

---

bps

Service and Parts

29.8

%  

22.2

%  

+760

bps

27.9

%  

24.5

%  

+340

bps

Wholesale and Other

1.4

%  

1.2

%  

+20

bps

1.7

%  

1.5

%  

+20

bps

Total

100.0

%  

100.0

%  

100.0

%  

100.0

%  

Retail Commercial Truck Gross Profit Mix Percentages:

New Vehicles

15.1

%  

20.2

%  

 -510 

bps

15.8

%  

19.5

%  

 -370 

bps

Used Vehicles

(5.4)

%  

5.0

%  

 -1,040 

bps

(3.5)

%  

5.0

%  

 -850 

bps

Finance and Insurance, Net

6.4

%  

5.0

%  

+140

bps

5.6

%  

5.2

%  

+40

bps

Service and Parts

79.0

%  

63.9

%  

+1,510

bps

76.8

%  

65.1

%  

+1,170

bps

Wholesale and Other

4.9

%  

5.9

%  

 -100 

bps

5.3

%  

5.2

%  

+10

bps

Total

100.0

%  

100.0

%  

100.0

%  

100.0

%  

14

Graphic


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, 2020 and 2019:

Three Months Ended

June 30,

2020 vs. 2019

(Amounts in Millions)

2020

2019

Change

% Change

Net Income

$

44.8

$

118.5

 

$

(73.7)

(62.2)

%

Add: Depreciation

 

27.9

 

27.1

 

0.8

3.0

%

Other Interest Expense

 

28.4

 

30.4

 

(2.0)

(6.6)

%

Income Taxes

 

16.5

 

41.5

 

(25.0)

(60.2)

%

Income from Discontinued Operations, net of tax

 

(0.1)

 

(0.1)

 

nm

EBITDA

$

117.5

$

217.4

 

$

(99.9)

(46.0)

%

Six Months Ended

June 30,

2020 vs. 2019

(Amounts in Millions)

2020

2019

Change

% Change

Net Income

$

96.3

$

217.7

 

$

(121.4)

(55.8)

%

Add: Depreciation

 

56.4

 

53.5

 

2.9

5.4

%

Other Interest Expense

 

60.1

 

60.3

 

(0.2)

(0.3)

%

Income Taxes

 

36.6

 

76.2

 

(39.6)

(52.0)

%

Income from Discontinued Operations, net of tax

 

(0.2)

 

(0.2)

 

nm

EBITDA

$

249.2

$

407.5

 

$

(158.3)

(38.8)

%

nm – not meaningful

The following table reconciles reported cash flow from operations to free cash flow for the six months ended June 30, 2020:

Six Months Ended

June 30,

(Amounts in Millions)

2020

Net cash provided by continuing operating activities

$

784.4

Add: Proceeds from sale of dealerships

10.3

Add: Proceeds from sale of equipment and improvements

19.8

Less: Net repayments of floor plan notes payable — non-trade

 

(309.9)

Less: Purchase of equipment and improvements

 

(76.8)

Free Cash Flow

$

427.8

# # # # # # #

15

Graphic


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DE 1-12297 22-3086739 2555 Telegraph Road Bloomfield Hills MI 48302 248 648-2500 Voting Common Stock, par value $0.0001 per share PAG NYSE false false false false false XML 14 R1.htm IDEA: XBRL DOCUMENT v3.20.2
Document and Entity Information
Jul. 29, 2020
Document and Entity Information [Abstract]  
Document Type 8-K
Document Period End Date Jul. 29, 2020
Entity File Number 1-12297
Entity Registrant Name Penske Automotive Group, Inc.
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 22-3086739
Entity Address, Address Line One 2555 Telegraph Road
Entity Address, City or Town Bloomfield Hills
Entity Address, State or Province MI
Entity Address, Postal Zip Code 48302
City Area Code 248
Local Phone Number 648-2500
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Voting Common Stock, par value $0.0001 per share
Trading Symbol PAG
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001019849
Amendment Flag false
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