Business Combinations

9 Months Ended

Sep. 30, 2013

Business Combinations

Business Combinations

3. Business Combinations

We acquired Penske Commercial Vehicles as discussed in Note 1, one Hertz car rental franchise market area and one automotive retail franchise during the nine months ended September 30, 2013. We acquired twenty-one automotive retail franchises during the nine months ended September 30, 2012. Our financial statements include the results of operations of the acquired entities from the date of acquisition. The fair value of the assets acquired and liabilities assumed have been recorded in our consolidated condensed financial statements, and may be subject to adjustment pending completion of final valuation. A summary of the aggregate consideration paid and the aggregate amounts of the assets acquired and liabilities assumed for the nine months ended September 30, 2013 and 2012 follows:

	September 30,
	2013			2012
Accounts receivable	$	20,117		$	28,907
Inventory	124,259			94,627
Other current assets	2,812			411
Property and equipment	26,062			34,261
Indefinite-lived intangibles	133,075			61,686
Other non-current assets	8,427			745
Current liabilities	(94,107		)	(58,926		)
Non-current liabilities	515			(23,906		)
Total consideration	221,160			137,805
Seller financed/assumed debt	—			—
Cash used in acquisitions	$	221,160		$	137,805

The following unaudited consolidated pro forma results of operations of PAG for the three and nine months ended September 30, 2013 and 2012, give effect to acquisitions consummated during 2013 and 2012 as if they had occurred effective at the beginning of the period:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Revenues	$	3,892,754	$	3,547,785	$	11,244,562	$	10,419,047
Income from continuing operations	68,843		50,454		200,498		162,012
Net income	67,844		49,638		197,544		156,388
Income from continuing operations per diluted common share	$	0.76	$	0.56	$	2.21	$	1.78
Net income per diluted common share	$	0.75	$	0.55	$	2.19	$	1.73