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Condensed Consolidating Financial Information (Tables)
3 Months Ended
Mar. 31, 2013
Condensed Consolidating Financial Information  
CONDENSED CONSOLIDATING BALANCE SHEET

 

 

CONDENSED CONSOLIDATING BALANCE SHEET
March 31, 2013

 

 

 

Total
Company

 

Eliminations

 

Penske
Automotive
Group

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

 

 

(In thousands)

 

Cash and cash equivalents

 

$

31,627

 

$

—

 

$

—

 

$

19,102

 

$

12,525

 

Accounts receivable, net

 

527,663

 

(352,395

)

352,395

 

293,820

 

233,843

 

Inventories

 

2,023,529

 

—

 

—

 

1,206,377

 

817,152

 

Other current assets

 

89,488

 

—

 

3,375

 

41,500

 

44,613

 

Assets held for sale

 

108,468

 

—

 

—

 

66,477

 

41,991

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current assets

 

2,780,775

 

(352,395

)

355,770

 

1,627,276

 

1,150,124

 

Property and equipment, net

 

1,078,627

 

—

 

4,353

 

727,320

 

346,954

 

Intangible assets

 

1,225,591

 

—

 

—

 

763,430

 

462,161

 

Equity method investments

 

311,251

 

—

 

254,392

 

—

 

56,859

 

Other long-term assets

 

18,738

 

(1,459,958

)

1,473,072

 

4,086

 

1,538

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

5,414,982

 

$

(1,812,353

)

$

2,087,587

 

$

3,122,112

 

$

2,017,636

 

 

 

 

 

 

 

 

 

 

 

 

 

Floor plan notes payable

 

$

1,425,199

 

$

—

 

$

—

 

$

884,419

 

$

540,780

 

Floor plan notes payable — non-trade

 

744,223

 

—

 

109,321

 

317,087

 

317,815

 

Accounts payable

 

287,744

 

—

 

2,564

 

124,555

 

160,625

 

Accrued expenses

 

226,080

 

(352,395

)

126

 

127,936

 

450,413

 

Current portion of long-term debt

 

33,053

 

—

 

—

 

23,932

 

9,121

 

Liabilities held for sale

 

81,452

 

—

 

—

 

42,717

 

38,735

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

2,797,751

 

(352,395

)

112,011

 

1,520,646

 

1,517,489

 

Long-term debt

 

858,676

 

(39,314

)

670,000

 

156,321

 

71,669

 

Deferred tax liabilities

 

297,851

 

—

 

—

 

272,900

 

24,951

 

Other long-term liabilities

 

155,128

 

—

 

—

 

81,088

 

74,040

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

4,109,406

 

(391,709

)

782,011

 

2,030,955

 

1,688,149

 

Total equity

 

1,305,576

 

(1,420,644

)

1,305,576

 

1,091,157

 

329,487

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

 

$

5,414,982

 

$

(1,812,353

)

$

2,087,587

 

$

3,122,112

 

$

2,017,636

 

 

CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2012

 

 

 

Total
Company

 

Eliminations

 

Penske
Automotive
Group

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

 

 

(In thousands)

 

Cash and cash equivalents

 

$

43,753

 

$

—

 

$

—

 

$

36,783

 

$

6,970

 

Accounts receivable, net

 

552,868

 

(340,917

)

340,917

 

372,638

 

180,230

 

Inventories

 

1,991,167

 

—

 

—

 

1,197,456

 

793,711

 

Other current assets

 

90,854

 

—

 

3,546

 

55,836

 

31,472

 

Assets held for sale

 

94,441

 

—

 

—

 

59,113

 

35,328

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current assets

 

2,773,083

 

(340,917

)

344,463

 

1,721,826

 

1,047,711

 

Property and equipment, net

 

1,023,781

 

—

 

4,474

 

654,248

 

365,059

 

Intangible assets

 

1,258,012

 

—

 

—

 

756,655

 

501,357

 

Equity method investments

 

303,160

 

—

 

252,816

 

—

 

50,344

 

Other long-term assets

 

20,954

 

(1,527,156

)

1,540,447

 

5,025

 

2,638

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

5,378,990

 

$

(1,868,073

)

$

2,142,200

 

$

3,137,754

 

$

1,967,109

 

 

 

 

 

 

 

 

 

 

 

 

 

Floor plan notes payable

 

$

1,408,363

 

$

—

 

$

—

 

$

917,390

 

$

490,973

 

Floor plan notes payable — non-trade

 

716,621

 

—

 

112,085

 

334,122

 

270,414

 

Accounts payable

 

263,349

 

—

 

3,344

 

123,754

 

136,251

 

Accrued expenses

 

223,574

 

(340,917

)

450

 

113,753

 

450,288

 

Current portion of long-term debt

 

19,493

 

—

 

—

 

9,745

 

9,748

 

Liabilities held for sale

 

62,156

 

—

 

—

 

33,163

 

28,993

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

2,693,556

 

(340,917

)

115,879

 

1,531,927

 

1,386,667

 

Long-term debt

 

918,024

 

(38,692

)

710,000

 

121,618

 

125,098

 

Deferred tax liabilities

 

287,818

 

—

 

—

 

260,445

 

27,373

 

Other long-term liabilities

 

163,271

 

—

 

—

 

84,108

 

79,163

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

4,062,669

 

(379,609

)

825,879

 

1,998,098

 

1,618,301

 

Total equity

 

1,316,321

 

(1,488,464

)

1,316,321

 

1,139,656

 

348,808

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

 

$

5,378,990

 

$

(1,868,073

)

$

2,142,200

 

$

3,137,754

 

$

1,967,109

 

 

CONDENSED CONSOLIDATING STATEMENT OF INCOME

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Three Months Ended March 31, 2013

 

 

 

Total
Company

 

Eliminations

 

Penske
Automotive
Group

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

 

 

(In thousands)

 

Revenues

 

$

3,399,867

 

$

—

 

$

—

 

$

2,017,973

 

$

1,381,894

 

Cost of sales

 

2,866,880

 

—

 

—

 

1,685,065

 

1,181,815

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

532,987

 

—

 

—

 

332,908

 

200,079

 

Selling, general and administrative expenses

 

413,312

 

—

 

5,158

 

256,469

 

151,685

 

Depreciation

 

14,449

 

—

 

378

 

8,251

 

5,820

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

105,226

 

—

 

(5,536

)

68,188

 

42,574

 

Floor plan interest expense

 

(10,211

)

—

 

(2,287

)

(4,810

)

(3,114

)

Other interest expense

 

(11,776

)

—

 

(6,716

)

(1,067

)

(3,993

)

Equity in earnings of affiliates

 

2,348

 

—

 

1,912

 

—

 

436

 

Equity in earnings of subsidiaries

 

—

 

(97,859

)

97,859

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

85,587

 

(97,859

)

85,232

 

62,311

 

35,903

 

Income taxes

 

(28,381

)

32,586

 

(28,381

)

(24,426

)

(8,160

)

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

57,206

 

(65,273

)

56,851

 

37,885

 

27,743

 

(Loss) income from discontinued operations, net of tax

 

813

 

(813

)

813

 

601

 

212

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

58,019

 

(66,086

)

57,664

 

38,486

 

27,955

 

Other comprehensive income (loss), net of tax

 

(37,119

)

36,784

 

(37,119

)

1,051

 

(37,835

)

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

20,900

 

(29,302

)

20,545

 

39,537

 

(9,880

)

Less: Comprehensive income attributable to the non-controlling interests

 

889

 

(534

)

534

 

—

 

889

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to Penske Automotive Group common stockholders

 

$

20,011

 

$

(28,768

)

$

20,011

 

$

39,537

 

$

(10,769

)

 

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Three Months Ended March 31, 2012

 

 

 

Total
Company

 

Eliminations

 

Penske
Automotive
Group

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

 

 

(In thousands)

 

Revenues

 

$

3,156,390

 

$

—

 

$

—

 

$

1,806,894

 

$

1,349,496

 

Cost of sales

 

2,662,531

 

—

 

—

 

1,514,572

 

1,147,959

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

493,859

 

—

 

—

 

292,322

 

201,537

 

Selling, general and administrative expenses

 

386,705

 

—

 

4,595

 

234,721

 

147,389

 

Depreciation

 

12,950

 

—

 

362

 

6,958

 

5,630

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

94,204

 

—

 

(4,957

)

50,643

 

48,518

 

Floor plan interest expense

 

(9,493

)

—

 

(2,198

)

(3,723

)

(3,572

)

Other interest expense

 

(12,131

)

—

 

(7,563

)

(910

)

(3,658

)

Equity in earnings of affiliates

 

4,410

 

—

 

3,760

 

—

 

650

 

Equity in earnings of subsidiaries

 

—

 

(87,760

)

87,760

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

76,990

 

(87,760

)

76,802

 

46,010

 

41,938

 

Income taxes

 

(26,908

)

30,742

 

(26,908

)

(20,635

)

(10,107

)

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

50,082

 

(57,018

)

49,894

 

25,375

 

31,831

 

(Loss) income from discontinued operations, net of tax

 

(3,076

)

3,076

 

(3,076

)

(1,741

)

(1,335

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

47,006

 

(53,942

)

46,818

 

23,634

 

30,496

 

Other comprehensive income (loss), net of tax

 

10,701

 

(9,692

)

10,701

 

(234

)

9,926

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

57,707

 

(63,634

)

57,519

 

23,400

 

40,422

 

Less: Comprehensive income attributable to non-controlling interests

 

188

 

—

 

—

 

—

 

188

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to Penske Automotive Group common stockholders

 

$

57,519

 

$

(63,634

)

$

57,519

 

$

23,400

 

$

40,234

 

 

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Three Months Ended March 31, 2013

 

 

 

Total
Company

 

Penske
Automotive
Group

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

 

 

(In thousands)

 

Net cash from continuing operating activities

 

$

103,075

 

$

68,356

 

$

28,962

 

$

5,757

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

Purchase of equipment and improvements

 

(68,398

)

(257

)

(58,038

)

(10,103

)

Dealership acquisitions, net

 

(27,180

)

—

 

(27,180

)

—

 

Other

 

5,744

 

—

 

—

 

5,744

 

 

 

 

 

 

 

 

 

 

 

Net cash from continuing investing activities

 

(89,834

)

(257

)

(85,218

)

(4,359

)

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

Net borrowings (repayments) of long-term debt

 

(39,589

)

(39,999

)

52,192

 

(51,782

)

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

 

33,477

 

(2,764

)

(17,034

)

53,275

 

Repurchase of common stock

 

(12,680

)

(12,680

)

—

 

—

 

Dividends

 

(12,656

)

(12,656

)

—

 

—

 

Distributions from (to) parent

 

—

 

—

 

415

 

(415

)

 

 

 

 

 

 

 

 

 

 

Net cash from continuing financing activities

 

(31,448

)

(68,099

)

35,573

 

1,078

 

 

 

 

 

 

 

 

 

 

 

Net cash from discontinued operations

 

6,081

 

—

 

3,002

 

3,079

 

 

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

(12,126

)

—

 

(17,681

)

5,555

 

Cash and cash equivalents, beginning of period

 

43,753

 

—

 

36,783

 

6,970

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

 

$

31,627

 

$

—

 

$

19,102

 

$

12,525

 

 

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Three Months Ended March 31, 2012

 

 

 

Total
Company

 

Penske
Automotive
Group

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

 

 

(In thousands)

 

Net cash from continuing operating activities

 

$

125,206

 

$

44,856

 

$

8,860

 

$

71,490

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

Purchase of equipment and improvements

 

(26,173

)

(518

)

(17,720

)

(7,935

)

Dealership acquisitions, net

 

(108,106

)

—

 

—

 

(108,106

)

Other

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

Net cash from continuing investing activities

 

(134,279

)

(518

)

(17,720

)

(116,041

)

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

Net borrowings (repayments) of long-term debt

 

9,766

 

(25,000

)

(963

)

35,729

 

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

 

(367

)

(1,843

)

(17,591

)

19,067

 

Repurchase of common stock

 

(8,522

)

(8,522

)

—

 

—

 

Dividends

 

(8,973

)

(8,973

)

—

 

—

 

Distributions from (to) parent

 

—

 

—

 

636

 

(636

)

 

 

 

 

 

 

 

 

 

 

Net cash from continuing financing activities

 

(8,096

)

(44,338

)

(17,918

)

54,160

 

 

 

 

 

 

 

 

 

 

 

Net cash from discontinued operations

 

21,105

 

—

 

9,994

 

11,111

 

 

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

3,936

 

—

 

(16,784

)

20,720

 

Cash and cash equivalents, beginning of period

 

27,201

 

—

 

27,201

 

—

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

 

$

31,137

 

$

—

 

$

10,417

 

$

20,720