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Consolidating Condensed Financial Information (Tables)
6 Months Ended
Jun. 30, 2013
Consolidating Condensed Financial Information  
CONDENSED CONSOLIDATING BALANCE SHEET

 

 

CONDENSED CONSOLIDATING BALANCE SHEET
June 30, 2013

 

 

 

Total
Company

 

Eliminations

 

Penske
Automotive
Group

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

26,254

 

$

—

 

$

—

 

$

759

 

$

25,495

 

Accounts receivable, net

 

530,647

 

(364,074

)

364,074

 

328,455

 

202,192

 

Inventories

 

2,125,771

 

—

 

—

 

1,318,613

 

807,158

 

Other current assets

 

90,352

 

—

 

7,068

 

33,953

 

49,331

 

Assets held for sale

 

33,849

 

—

 

—

 

15,984

 

17,865

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current assets

 

2,806,873

 

(364,074

)

371,142

 

1,697,764

 

1,102,041

 

Property and equipment, net

 

1,148,495

 

—

 

4,356

 

789,341

 

354,798

 

Intangible assets

 

1,231,166

 

—

 

—

 

767,816

 

463,350

 

Equity method investments

 

332,503

 

—

 

273,827

 

—

 

58,676

 

Other long-term assets

 

18,595

 

(1,490,576

)

1,503,443

 

4,030

 

1,698

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

5,537,632

 

$

(1,854,650

)

$

2,152,768

 

$

3,258,951

 

$

1,980,563

 

 

 

 

 

 

 

 

 

 

 

 

 

Floor plan notes payable

 

$

1,474,440

 

$

—

 

$

—

 

$

962,001

 

$

512,439

 

Floor plan notes payable — non-trade

 

753,130

 

—

 

122,700

 

340,030

 

290,400

 

Accounts payable

 

314,050

 

—

 

3,338

 

130,711

 

180,001

 

Accrued expenses

 

226,968

 

(364,074

)

465

 

129,726

 

460,851

 

Current portion of long-term debt

 

44,896

 

—

 

—

 

35,769

 

9,127

 

Liabilities held for sale

 

23,547

 

—

 

—

 

9,598

 

13,949

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

2,837,031

 

(364,074

)

126,503

 

1,607,835

 

1,466,767

 

Long-term debt

 

875,307

 

(38,182

)

670,000

 

175,856

 

67,633

 

Deferred tax liabilities

 

313,756

 

—

 

—

 

288,245

 

25,511

 

Other long-term liabilities

 

155,273

 

—

 

—

 

79,733

 

75,540

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

4,181,367

 

(402,256

)

796,503

 

2,151,669

 

1,635,451

 

Total equity

 

1,356,265

 

(1,452,394

)

1,356,265

 

1,107,282

 

345,112

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

 

$

5,537,632

 

$

(1,854,650

)

$

2,152,768

 

$

3,258,951

 

$

1,980,563

 

 

CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2012

 

 

 

Total
Company

 

Eliminations

 

Penske
Automotive
Group

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

43,447

 

$

—

 

$

—

 

$

36,478

 

$

6,969

 

Accounts receivable, net

 

554,851

 

(340,917

)

340,917

 

375,442

 

179,409

 

Inventories

 

2,000,206

 

—

 

—

 

1,212,521

 

787,685

 

Other current assets

 

90,485

 

—

 

3,546

 

55,841

 

31,098

 

Assets held for sale

 

73,398

 

—

 

—

 

29,400

 

43,998

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current assets

 

2,762,387

 

(340,917

)

344,463

 

1,709,682

 

1,049,159

 

Property and equipment, net

 

1,031,188

 

—

 

4,474

 

662,722

 

363,992

 

Intangible assets

 

1,261,299

 

—

 

—

 

760,321

 

500,978

 

Equity method investments

 

303,160

 

—

 

252,816

 

—

 

50,344

 

Other long-term assets

 

20,956

 

(1,527,156

)

1,540,447

 

5,029

 

2,636

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

5,378,990

 

$

(1,868,073

)

$

2,142,200

 

$

3,137,754

 

$

1,967,109

 

 

 

 

 

 

 

 

 

 

 

 

 

Floor plan notes payable

 

$

1,408,362

 

$

—

 

$

—

 

$

917,391

 

$

490,971

 

 

 

 

 

 

 

 

 

 

 

 

 

Floor plan notes payable — non-trade

 

725,526

 

—

 

112,085

 

346,683

 

266,758

 

Accounts payable

 

263,881

 

—

 

3,344

 

124,663

 

135,874

 

Accrued expenses

 

223,972

 

(340,917

)

450

 

114,636

 

449,803

 

Current portion of long-term debt

 

19,493

 

—

 

—

 

9,745

 

9,748

 

Liabilities held for sale

 

51,279

 

—

 

—

 

17,766

 

33,513

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

2,692,513

 

(340,917

)

115,879

 

1,530,884

 

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

 

164,314

 

—

 

—

 

85,151

 

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 June 30, 2013

 

 

 

Total
Company

 

Eliminations

 

Penske
Automotive
Group

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

3,699,175

 

$

—

 

$

—

 

$

2,285,609

 

$

1,413,566

 

Cost of sales

 

3,130,152

 

—

 

—

 

1,913,900

 

1,216,252

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

569,023

 

—

 

—

 

371,709

 

197,314

 

Selling, general and administrative expenses

 

440,331

 

—

 

4,695

 

281,360

 

154,276

 

Depreciation

 

14,985

 

—

 

411

 

8,843

 

5,731

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

113,707

 

—

 

(5,106

)

81,506

 

37,307

 

Floor plan interest expense

 

(10,900

)

—

 

(2,459

)

(5,219

)

(3,222

)

Other interest expense

 

(12,066

)

—

 

(6,668

)

(1,196

)

(4,202

)

Equity in earnings of affiliates

 

8,901

 

—

 

6,918

 

—

 

1,983

 

Equity in earnings of subsidiaries

 

—

 

(106,504

)

106,504

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

99,642

 

(106,504

)

99,189

 

75,091

 

31,866

 

Income taxes

 

(35,164

)

37,757

 

(35,164

)

(29,130

)

(8,627

)

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

64,478

 

(68,747

)

64,025

 

45,961

 

23,239

 

(Loss) income from discontinued operations, net of tax

 

(1,983

)

1,983

 

(1,983

)

(540

)

(1,443

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

62,495

 

(66,764

)

62,042

 

45,421

 

21,796

 

Other comprenhensive income (loss), net of tax

 

2,981

 

(2,676

)

2,981

 

1,122

 

1,554

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

65,476

 

(69,440

)

65,023

 

46,543

 

23,350

 

Less: Comprehensive income attributable to the non-controlling interests

 

453

 

—

 

—

 

—

 

453

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to Penske Automotive Group common stockholders

 

$

65,023

 

$

(69,440

)

$

65,023

 

$

46,543

 

$

22,897

 

 

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Three Months Ended June 30, 2012

 

 

 

Total
Company

 

Eliminations

 

Penske
Automotive
Group

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

3,315,051

 

$

—

 

$

—

 

$

2,001,589

 

$

1,313,462

 

Cost of sales

 

2,810,080

 

—

 

—

 

1,681,433

 

1,128,647

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

504,971

 

—

 

—

 

320,156

 

184,815

 

Selling, general and administrative expenses

 

400,637

 

—

 

4,740

 

247,494

 

148,403

 

Depreciation

 

13,319

 

—

 

246

 

7,394

 

5,679

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

91,015

 

—

 

(4,986

)

65,268

 

30,733

 

Floor plan interest expense

 

(9,845

)

—

 

(2,254

)

(4,175

)

(3,416

)

Other interest expense

 

(11,478

)

—

 

(7,079

)

(603

)

(3,796

)

Equity in earnings (losses) of affiliates

 

8,168

 

—

 

6,994

 

(40

)

1,214

 

Equity in earnings of subsidiaries

 

—

 

(84,665

)

84,665

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

77,860

 

(84,665

)

77,340

 

60,450

 

24,735

 

Income taxes

 

(27,093

)

29,659

 

(27,093

)

(23,227

)

(6,432

)

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

50,767

 

(55,006

)

50,247

 

37,223

 

18,303

 

(Loss) income from discontinued operations, net of tax

 

(1,155

)

1,155

 

(1,155

)

(399

)

(756

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

49,612

 

(53,851

)

49,092

 

36,824

 

17,547

 

Other comprehensive income (loss), net of tax

 

(10,896

)

11,430

 

(10,896

)

(15

)

(11,415

)

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

38,716

 

(42,421

)

38,196

 

36,809

 

6,132

 

Less: Comprehensive income attributable to non-controlling interests

 

520

 

—

 

—

 

—

 

520

 

Comprehensive income attributable to Penske Automotive Group common stockholders

 

$

38,196

 

$

(42,421

)

$

38,196

 

$

36,809

 

$

5,612

 

 

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Six Months Ended June 30, 2013

 

 

 

Total
Company

 

Eliminations

 

Penske
Automotive
Group

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

7,103,774

 

$

—

 

$

—

 

$

4,319,855

 

$

2,783,919

 

Cost of sales

 

6,000,544

 

—

 

—

 

3,612,699

 

2,387,845

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

1,103,230

 

—

 

—

 

707,156

 

396,074

 

Selling, general and administrative expenses

 

854,770

 

—

 

9,853

 

540,027

 

304,890

 

Depreciation

 

29,516

 

—

 

789

 

17,205

 

11,522

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

218,944

 

—

 

(10,642

)

149,924

 

79,662

 

Floor plan interest expense

 

(21,168

)

—

 

(4,746

)

(10,093

)

(6,329

)

Other interest expense

 

(23,793

)

—

 

(13,395

)

(2,263

)

(8,135

)

Equity in earnings (losses) of affiliates

 

11,249

 

—

 

8,830

 

—

 

2,419

 

Equity in earnings of subsidiaries

 

—

 

(204,038

)

204,038

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

185,232

 

(204,038

)

184,085

 

137,568

 

67,617

 

Income taxes

 

(63,571

)

70,461

 

(63,571

)

(53,709

)

(16,752

)

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

121,661

 

(133,577

)

120,514

 

83,859

 

50,865

 

(Loss) income from discontinued operations, net of tax

 

(1,147

)

808

 

(808

)

(33

)

(1,114

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

120,514

 

(132,769

)

119,706

 

83,826

 

49,751

 

Other comprehensive income (loss), net of tax

 

(34,138

)

36,313

 

(34,138

)

(32

)

(36,281

)

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

86,376

 

(96,456

)

85,568

 

83,794

 

13,470

 

Less: Comprehensive income attributable to non-controlling interests

 

1,342

 

(534

)

534

 

—

 

1,342

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to Penske Automotive Group common stockholders

 

$

85,034

 

$

(95,922

)

$

85,034

 

$

83,794

 

$

12,128

 

 

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Six Months Ended June 30, 2012

 

 

 

Total
Company

 

Eliminations

 

Penske
Automotive
Group

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

6,478,764

 

$

—

 

$

—

 

$

3,824,510

 

$

2,654,254

 

Cost of sales

 

5,478,829

 

—

 

—

 

3,209,681

 

2,269,148

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

999,935

 

—

 

—

 

614,829

 

385,106

 

Selling, general and administrative expenses

 

788,619

 

—

 

9,335

 

484,583

 

294,701

 

Depreciation

 

26,310

 

—

 

608

 

14,438

 

11,264

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

185,006

 

—

 

(9,943

)

115,808

 

79,141

 

Floor plan interest expense

 

(19,368

)

—

 

(4,452

)

(7,947

)

(6,969

)

Other interest expense

 

(23,572

)

—

 

(14,642

)

(1,513

)

(7,417

)

Equity in earnings (losses) of affiliates

 

12,578

 

—

 

10,754

 

(40

)

1,864

 

Equity in earnings of subsidiaries

 

—

 

(172,219

)

172,219

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

154,644

 

(172,219

)

153,936

 

106,308

 

66,619

 

Income taxes

 

(53,926

)

60,331

 

(53,926

)

(43,806

)

(16,525

)

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

100,718

 

(111,888

)

100,010

 

62,502

 

50,094

 

(Loss) income from discontinued operations, net of tax

 

(4,100

)

4,100

 

(4,100

)

(2,049

)

(2,051

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

96,618

 

(107,788

)

95,910

 

60,453

 

48,043

 

Other comprehensive income (loss), net of tax

 

(195

)

1,738

 

(195

)

(249

)

(1,489

)

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

96,423

 

(106,050

)

95,715

 

60,204

 

46,554

 

Less: Comprehensive income attributable to non-controlling interests

 

708

 

—

 

—

 

—

 

708

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to Penske Automotive Group common stockholders

 

$

95,715

 

$

(106,050

)

$

95,715

 

$

60,204

 

$

45,846

 

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Six Months Ended June 30, 2013

 

 

 

Total
Company

 

Penske
Automotive
Group

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

Net cash from continuing operating activities

 

$

175,643

 

$

72,085

 

$

51,307

 

$

52,251

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

Purchase of equipment and improvements

 

(143,591

)

(671

)

(120,322

)

(22,598

)

Dealership acquisitions, net

 

(30,734

)

—

 

(29,314

)

(1,420

)

Other

 

(9,695

)

—

 

(15,503

)

5,808

 

 

 

 

 

 

 

 

 

 

 

Net cash from continuing investing activities

 

(184,020

)

(671

)

(165,139

)

(18,210

)

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

Net borrowings (repayments) of long-term debt

 

(11,171

)

(40,000

)

80,273

 

(51,444

)

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

 

33,478

 

10,615

 

(6,654

)

29,517

 

Repurchase of common stock

 

(15,813

)

(15,813

)

—

 

—

 

Dividends

 

(26,216

)

(26,216

)

—

 

—

 

Distributions from (to) parent

 

—

 

—

 

392

 

(392

)

Other

 

235

 

—

 

—

 

235

 

 

 

 

 

 

 

 

 

 

 

Net cash from continuing financing activities

 

(19,487

)

(71,414

)

74,011

 

(22,084

)

 

 

 

 

 

 

 

 

 

 

Net cash from discontinued operations

 

10,671

 

—

 

4,102

 

6,569

 

 

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

(17,193

)

—

 

(35,719

)

18,526

 

Cash and cash equivalents, beginning of period

 

43,447

 

—

 

36,478

 

6,969

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

 

$

26,254

 

$

—

 

$

759

 

$

25,495

 

 

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Six Months Ended June 30, 2012

 

 

 

Total
Company

 

Penske
Automotive
Group

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

Net cash from continuing operating activities

 

$

201,953

 

$

56,571

 

$

10,787

 

$

134,595

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

Purchase of equipment and improvements

 

(57,322

)

(754

)

(44,404

)

(12,164

)

Dealership acquisitions, net

 

(111,522

)

—

 

(3,416

)

(108,106

)

Other

 

(3,653

)

—

 

(970

)

(2,683

)

 

 

 

 

 

 

 

 

 

 

Net cash from continuing investing activities

 

(172,497

)

(754

)

(48,790

)

(122,953

)

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

Repurchase of 3.5% senior subordinated convertible notes

 

(37,778

)

(37,778

)

—

 

—

 

Net borrowings (repayments) of long-term debt

 

(6,427

)

(18,000

)

(967

)

12,540

 

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

 

35,218

 

28,708

 

19,651

 

(13,141

)

Repurchase of common stock

 

(9,829

)

(9,829

)

—

 

—

 

Dividends

 

(18,918

)

(18,918

)

—

 

—

 

Distributions from (to) parent

 

—

 

—

 

585

 

(585

)

 

 

 

 

 

 

 

 

 

 

Net cash from continuing financing activities

 

(37,734

)

(55,817

)

19,269

 

(1,186

)

 

 

 

 

 

 

 

 

 

 

Net cash from discontinued operations

 

17,228

 

—

 

9,933

 

7,295

 

 

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

8,950

 

—

 

(8,801

)

17,751

 

Cash and cash equivalents, beginning of period

 

26,997

 

—

 

26,767

 

230

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

 

$

35,947

 

$

—

 

$

17,966

 

$

17,981