Penske Automotive Reports First Quarter 2019 Results

Income From Continuing Operations of $100.1 million, and Related Earnings Per Share of $1.19

Published

BLOOMFIELD HILLS, Mich., April 25, 2019 /PRNewswire/ -- Penske Automotive Group, Inc. (NYSE: PAG), a diversified international transportation services company, today announced first quarter 2019 results. For the three months ended March 31, 2019, the company reported income from continuing operations attributable to common shareholders of $100.1 million, or $1.19 per share, compared to $108.0 million, or $1.26 per share in the prior year.

During the three months ended March 31, 2019, income from continuing operations and related earnings per share were negatively impacted by $7.6 million after taxes, or $0.09 per share, from net restructuring charges and product availability shortages related to Worldwide Light Vehicle Testing Protocol (WLTP). These costs were partially offset by $2.4 million after taxes, or $0.03 per share, related to the favorable outcome of a litigation matter at Penske Truck Leasing. Foreign exchange negatively affected earnings per share by $0.04 in the first quarter 2019.

The results for the three months ended March 31, 2018 include a net benefit totaling $1.0 million or $0.01 per share, related to strategic dealership actions. On January 1, 2019, the company adopted ASC 842 for lease recognition and recorded operating lease right-of-use assets and operating lease liabilities of approximately $2.3 billion each on our balance sheet as of March 31, 2019.

Chairman Roger Penske said, "I am pleased with our first quarter performance and optimistic about the remainder of the year. We repurchased 1.5%, or 1.3 million, of our outstanding shares while holding long-term debt flat with December last year. Further, I am particularly pleased to see the 5.6% increase in same-store service and parts revenue when excluding the impact of foreign exchange and the increase in our used to new ratio. As I look forward, the product availability issues created by WLTP have improved, and I am encouraged by the strong order book in the U.K., the continued strength in our retail truck operations, and the resilience shown by our dealership operations."

 Automotive Retail Highlights of the First Quarter

  • Same-Store Retail Unit Sales -3.8% to 124,725
    • New Retail Units -8.5%
    • Used Retail Units +0.1%
  • Same-Store Retail Revenue -4.5%; Excluding Foreign Exchange -1.4%

 

Actual Excl. F/X
New Vehicles -9.4% -6.9%
Used Vehicles -0.5% +3.4%
Finance & Insurance -0.4% +2.8%
Service & Parts +3.0% +5.6%

 

  • Same-Store Average Gross Profit Per Unit

 

Actual Excl. F/X New Used F & I
New Vehicles -9.4% -6.9% Actual $3,153 $1,301 $1,262
Used Vehicles -0.5% +3.4% Change +$49 -$209 +$42
Finance & Insurance -0.4% +2.8%
Service & Parts +3.0% +5.6% Excl. Foreign Exchange $3,253 $1,347 $1,303
Change +$149 -$163 +$83

 

Used Supercenter Operations

For the three months ended March 31, 2019, the used supercenters retailed 18,040 used units and generated $314.4 million in revenue. The company expects to open four additional used vehicle supercenters during the second half of 2019, including two sites in the U.S. and another two in the U.K.

Retail Commercial Truck Operations

For the three months ended March 31, 2019, total medium and heavy duty truck units retailed increased 9.4% and revenue increased 13.6% to $332.3 million. Same-store units retailed increased 7.7% and revenue increased 12.4%. Service and parts represented 27.5% of revenue and 66.4% of gross profit. Same-store service and parts revenue increased 1.1%.

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 months ended March 31, 2019, the company recorded $25.8 million in earnings from this investment compared to $16.0 million for the same period last year.

Dividend and Share Repurchases

On January 30, 2019, the company announced that its Board of Directors increased the dividend to its common stock shareholders to $0.38 per share, the 31st consecutive increase in the quarterly dividend.

During the three months ended March 31, 2019, the company repurchased approximately 1.5% of its outstanding shares, representing 1,258,348 shares, for $54.3 million, or an average of $43.19 per share. As of March 31, 2019, the company had remaining share repurchase authorization of approximately $145.7 million.

Conference Call

Penske Automotive Group will host a conference call discussing financial results relating to the first quarter of 2019 on Thursday, April 25, 2019, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (800) 230-1093 [International, please dial (612) 332-0107]. 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 first quarter 2019 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 and Russell 2000, 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 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.

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Inquiries should contact:

J.D. Carlson Anthony R. Pordon
Actual Excl. F/X New Used F & I Executive Vice President and Executive Vice President Investor Relations
New Vehicles -9.4% -6.9% Actual $3,153 $1,301 $1,262 Chief Financial Officer and Corporate Development
Used Vehicles -0.5% +3.4% Change +$49 -$209 +$42 Penske Automotive Group, Inc. Penske Automotive Group, Inc.
Finance & Insurance -0.4% +2.8% 248-648-2810 248-648-2540
Service & Parts +3.0% +5.6% Excl. Foreign Exchange $3,253 $1,347 $1,303 jcarlson@penskeautomotive.com tpordon@penskeautomotive.com
Change +$149 -$163 +$83

 

J.D. Carlson Anthony R. Pordon PENSKE AUTOMOTIVE GROUP, INC. Consolidated Condensed Statements of Income (Amounts In Millions, Except Per Share Data) (Unaudited)
Actual Excl. F/X New Used F & I Executive Vice President and Executive Vice President Investor Relations
New Vehicles -9.4% -6.9% Actual $3,153 $1,301 $1,262 Chief Financial Officer and Corporate Development Three Months Ended
Used Vehicles -0.5% +3.4% Change +$49 -$209 +$42 Penske Automotive Group, Inc. Penske Automotive Group, Inc. March 31,
Finance & Insurance -0.4% +2.8% 248-648-2810 248-648-2540 2019 2018 Change
Service & Parts +3.0% +5.6% Excl. Foreign Exchange $3,253 $1,347 $1,303 jcarlson@penskeautomotive.com tpordon@penskeautomotive.com Revenue $ 5,564.4 $ 5,746.9 (3.2) %
Change +$149 -$163 +$83 Cost of Sales 4,712.9 4,882.5 (3.5) %
Gross Profit $ 851.5 $ 864.4 (1.5) %
SG&A Expenses 666.4 663.1 0.5 %
Depreciation 26.4 25.6 3.1 %
Operating Income $ 158.7 $ 175.7 (9.7) %
Floor Plan Interest Expense (21.8) (18.9) 15.3 %
Other Interest Expense (29.9) (29.8) 0.3 %
Equity in Earnings of Affiliates 26.8 17.3 54.9 %
Income from Continuing Operations Before Income Taxes $ 133.8 $ 144.3 (7.3) %
Income Taxes (34.7) (36.6) (5.2) %
Income from Continuing Operations $ 99.1 $ 107.7 (8.0) %
Income from Discontinued Operations, net of tax 0.1 0.1 nm
Net Income $ 99.2 $ 107.8 (8.0) %
Less: Loss Attributable to Non-Controlling Interests (1.0) (0.3) nm
Net Income Attributable to Common Shareholders $ 100.2 $ 108.1 (7.3) %
Amounts Attributable to Common Shareholders:
Reported Income from Continuing Operations $ 99.1 $ 107.7 (8.0) %
Less: Loss Attributable to Non-Controlling Interests (1.0) (0.3) nm
Income from Continuing Operations, net of tax $ 100.1 $ 108.0 (7.3) %
Income from Discontinued Operations, net of tax 0.1 0.1 nm
Net Income Attributable to Common Shareholders $ 100.2 $ 108.1 (7.3) %
Income from Continuing Operations Per Share $ 1.19 $ 1.26 (5.6) %
Income Per Share $ 1.19 $ 1.26 (5.6) %
Weighted Average Shares Outstanding 84.4 86.0 (1.9) %
nm – not meaningful

 

 

J.D. Carlson Anthony R. Pordon PENSKE AUTOMOTIVE GROUP, INC. Consolidated Condensed Statements of Income (Amounts In Millions, Except Per Share Data) (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Consolidated Condensed Balance Sheets (Amounts In Millions) (Unaudited)
Actual Excl. F/X New Used F & I Executive Vice President and Executive Vice President Investor Relations
New Vehicles -9.4% -6.9% Actual $3,153 $1,301 $1,262 Chief Financial Officer and Corporate Development Three Months Ended March 31, December 31,
Used Vehicles -0.5% +3.4% Change +$49 -$209 +$42 Penske Automotive Group, Inc. Penske Automotive Group, Inc. March 31, 2019 2018
Finance & Insurance -0.4% +2.8% 248-648-2810 248-648-2540 2019 2018 Change Assets:
Service & Parts +3.0% +5.6% Excl. Foreign Exchange $3,253 $1,347 $1,303 jcarlson@penskeautomotive.com tpordon@penskeautomotive.com Revenue $ 5,564.4 $ 5,746.9 (3.2) % Cash and Cash Equivalents $ 43.5 $ 39.4
Change +$149 -$163 +$83 Cost of Sales 4,712.9 4,882.5 (3.5) % Accounts Receivable, Net 1,034.1 929.1
Gross Profit $ 851.5 $ 864.4 (1.5) % Inventories 4,104.1 4,040.1
SG&A Expenses 666.4 663.1 0.5 % Other Current Assets 101.5 86.6
Depreciation 26.4 25.6 3.1 % Total Current Assets 5,283.2 5,095.2
Operating Income $ 158.7 $ 175.7 (9.7) % Property and Equipment, Net 2,276.1 2,250.0
Floor Plan Interest Expense (21.8) (18.9) 15.3 % Operating Lease Right-of-Use Assets 2,340.6
Other Interest Expense (29.9) (29.8) 0.3 % Intangibles 2,247.9 2,238.2
Equity in Earnings of Affiliates 26.8 17.3 54.9 % Other Long-Term Assets 1,351.3 1,321.1
Income from Continuing Operations Before Income Taxes $ 133.8 $ 144.3 (7.3) % Total Assets $ 13,499.1 $ 10,904.5
Income Taxes (34.7) (36.6) (5.2) %
Income from Continuing Operations $ 99.1 $ 107.7 (8.0) % Liabilities and Equity:
Income from Discontinued Operations, net of tax 0.1 0.1 nm Floor Plan Notes Payable $ 2,419.2 $ 2,362.2
Net Income $ 99.2 $ 107.8 (8.0) % Floor Plan Notes Payable – Non-Trade 1,488.7 1,428.6
Less: Loss Attributable to Non-Controlling Interests (1.0) (0.3) nm Accounts Payable 668.5 598.2
Net Income Attributable to Common Shareholders $ 100.2 $ 108.1 (7.3) % Accrued Expenses and Other Current Liabilities 698.7 566.6
Current Portion Long-Term Debt 94.5 92.0
Amounts Attributable to Common Shareholders: Liabilities Held for Sale 0.5 0.7
Reported Income from Continuing Operations $ 99.1 $ 107.7 (8.0) % Total Current Liabilities 5,370.1 5,048.3
Less: Loss Attributable to Non-Controlling Interests (1.0) (0.3) nm Long-Term Debt 2,118.3 2,124.7
Income from Continuing Operations, net of tax $ 100.1 $ 108.0 (7.3) % Long-Term Operating Lease Liabilities 2,308.4
Income from Discontinued Operations, net of tax 0.1 0.1 nm Other Long-Term Liabilities 1,040.6 1,096.8
Net Income Attributable to Common Shareholders $ 100.2 $ 108.1 (7.3) % Total Liabilities 10,837.4 8,269.8
Income from Continuing Operations Per Share $ 1.19 $ 1.26 (5.6) % Equity 2,661.7 2,634.7
Income Per Share $ 1.19 $ 1.26 (5.6) % Total Liabilities and Equity $ 13,499.1 $ 10,904.5
Weighted Average Shares Outstanding 84.4 86.0 (1.9) %
Supplemental Balance Sheet Information
nm – not meaningful New vehicle days' supply 62 72
Used vehicle days' supply 41 57

 

 

J.D. Carlson Anthony R. Pordon PENSKE AUTOMOTIVE GROUP, INC. Consolidated Condensed Statements of Income (Amounts In Millions, Except Per Share Data) (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Consolidated Condensed Balance Sheets (Amounts In Millions) (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Consolidated Operations Selected Data (Unaudited)
Actual Excl. F/X New Used F & I Executive Vice President and Executive Vice President Investor Relations
New Vehicles -9.4% -6.9% Actual $3,153 $1,301 $1,262 Chief Financial Officer and Corporate Development Three Months Ended March 31, December 31, Three Months Ended
Used Vehicles -0.5% +3.4% Change +$49 -$209 +$42 Penske Automotive Group, Inc. Penske Automotive Group, Inc. March 31, 2019 2018 March 31,
Finance & Insurance -0.4% +2.8% 248-648-2810 248-648-2540 2019 2018 Change Assets: 2019 2018
Service & Parts +3.0% +5.6% Excl. Foreign Exchange $3,253 $1,347 $1,303 jcarlson@penskeautomotive.com tpordon@penskeautomotive.com Revenue $ 5,564.4 $ 5,746.9 (3.2) % Cash and Cash Equivalents $ 43.5 $ 39.4 Geographic Revenue Mix:
Change +$149 -$163 +$83 Cost of Sales 4,712.9 4,882.5 (3.5) % Accounts Receivable, Net 1,034.1 929.1 North America 54.9 % 53.0 %
Gross Profit $ 851.5 $ 864.4 (1.5) % Inventories 4,104.1 4,040.1 U.K. 36.7 % 38.2 %
SG&A Expenses 666.4 663.1 0.5 % Other Current Assets 101.5 86.6 Other International 8.4 % 8.8 %
Depreciation 26.4 25.6 3.1 % Total Current Assets 5,283.2 5,095.2 Total 100.0 % 100.0 %
Operating Income $ 158.7 $ 175.7 (9.7) % Property and Equipment, Net 2,276.1 2,250.0
Floor Plan Interest Expense (21.8) (18.9) 15.3 % Operating Lease Right-of-Use Assets 2,340.6 Revenue: (Amounts in Millions)
Other Interest Expense (29.9) (29.8) 0.3 % Intangibles 2,247.9 2,238.2 Retail Automotive $ 5,091.2 $ 5,296.0
Equity in Earnings of Affiliates 26.8 17.3 54.9 % Other Long-Term Assets 1,351.3 1,321.1 Retail Commercial Trucks 332.3 292.4
Income from Continuing Operations Before Income Taxes $ 133.8 $ 144.3 (7.3) % Total Assets $ 13,499.1 $ 10,904.5 Commercial Vehicles Australia/Power Systems and Other 140.9 158.5
Income Taxes (34.7) (36.6) (5.2) % Total $ 5,564.4 $ 5,746.9
Income from Continuing Operations $ 99.1 $ 107.7 (8.0) % Liabilities and Equity:
Income from Discontinued Operations, net of tax 0.1 0.1 nm Floor Plan Notes Payable $ 2,419.2 $ 2,362.2 Gross Profit: (Amounts in Millions)
Net Income $ 99.2 $ 107.8 (8.0) % Floor Plan Notes Payable – Non-Trade 1,488.7 1,428.6 Retail Automotive $ 761.5 $ 778.3
Less: Loss Attributable to Non-Controlling Interests (1.0) (0.3) nm Accounts Payable 668.5 598.2 Retail Commercial Trucks 54.4 46.6
Net Income Attributable to Common Shareholders $ 100.2 $ 108.1 (7.3) % Accrued Expenses and Other Current Liabilities 698.7 566.6 Commercial Vehicles Australia/Power Systems and Other 35.6 39.5
Current Portion Long-Term Debt 94.5 92.0 Total $ 851.5 $ 864.4
Amounts Attributable to Common Shareholders: Liabilities Held for Sale 0.5 0.7
Reported Income from Continuing Operations $ 99.1 $ 107.7 (8.0) % Total Current Liabilities 5,370.1 5,048.3 Gross Margin:
Less: Loss Attributable to Non-Controlling Interests (1.0) (0.3) nm Long-Term Debt 2,118.3 2,124.7 Retail Automotive 15.0 % 14.7 %
Income from Continuing Operations, net of tax $ 100.1 $ 108.0 (7.3) % Long-Term Operating Lease Liabilities 2,308.4 Retail Commercial Trucks 16.4 % 15.9 %
Income from Discontinued Operations, net of tax 0.1 0.1 nm Other Long-Term Liabilities 1,040.6 1,096.8 Commercial Vehicles Australia/Power Systems and Other 25.3 % 24.9 %
Net Income Attributable to Common Shareholders $ 100.2 $ 108.1 (7.3) % Total Liabilities 10,837.4 8,269.8 Total 15.3 % 15.0 %
Income from Continuing Operations Per Share $ 1.19 $ 1.26 (5.6) % Equity 2,661.7 2,634.7
Income Per Share $ 1.19 $ 1.26 (5.6) % Total Liabilities and Equity $ 13,499.1 $ 10,904.5
Weighted Average Shares Outstanding 84.4 86.0 (1.9) % Three Months Ended
Supplemental Balance Sheet Information March 31,
nm – not meaningful New vehicle days' supply 62 72
Used vehicle days' supply 41 57 2019 2018
Operating Items as a Percentage of Revenue:
Gross Profit 15.3 % 15.0 %
Selling, General and Administrative Expenses 12.0 % 11.5 %
Operating Income 2.9 % 3.1 %
Income from Continuing Operations Before Income Taxes 2.4 % 2.5 %
Operating Items as a Percentage of Total Gross Profit:
Selling, General and Administrative Expenses 78.3 % 76.7 %
Operating Income 18.6 % 20.3 %
Three Months Ended
March 31,
(Amounts in Millions) 2019 2018
EBITDA* $ 190.1 $ 199.7
Floorplan Credits $ 8.5 $ 8.5
Rent Expense $ 57.2 $ 57.9
Capital Expenditures $ 63.1 $ 64.7
Stock Repurchases $ 54.3 $ 50.0
___________________________
* See the following Non-GAAP reconciliation table.

 

 

J.D. Carlson Anthony R. Pordon PENSKE AUTOMOTIVE GROUP, INC. Consolidated Condensed Statements of Income (Amounts In Millions, Except Per Share Data) (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Consolidated Condensed Balance Sheets (Amounts In Millions) (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Consolidated Operations Selected Data (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Retail Automotive Operations Selected Data – Revenue and Gross Profit Mix (Unaudited)
Actual Excl. F/X New Used F & I Executive Vice President and Executive Vice President Investor Relations
New Vehicles -9.4% -6.9% Actual $3,153 $1,301 $1,262 Chief Financial Officer and Corporate Development Three Months Ended March 31, December 31, Three Months Ended Three Months Ended
Used Vehicles -0.5% +3.4% Change +$49 -$209 +$42 Penske Automotive Group, Inc. Penske Automotive Group, Inc. March 31, 2019 2018 March 31, March 31,
Finance & Insurance -0.4% +2.8% 248-648-2810 248-648-2540 2019 2018 Change Assets: 2019 2018 2019 2018
Service & Parts +3.0% +5.6% Excl. Foreign Exchange $3,253 $1,347 $1,303 jcarlson@penskeautomotive.com tpordon@penskeautomotive.com Revenue $ 5,564.4 $ 5,746.9 (3.2) % Cash and Cash Equivalents $ 43.5 $ 39.4 Geographic Revenue Mix: Retail Automotive Revenue Mix:
Change +$149 -$163 +$83 Cost of Sales 4,712.9 4,882.5 (3.5) % Accounts Receivable, Net 1,034.1 929.1 North America 54.9 % 53.0 % Premium:
Gross Profit $ 851.5 $ 864.4 (1.5) % Inventories 4,104.1 4,040.1 U.K. 36.7 % 38.2 % BMW / MINI 22 % 22 %
SG&A Expenses 666.4 663.1 0.5 % Other Current Assets 101.5 86.6 Other International 8.4 % 8.8 % Audi 12 % 14 %
Depreciation 26.4 25.6 3.1 % Total Current Assets 5,283.2 5,095.2 Total 100.0 % 100.0 % Mercedes-Benz 10 % 10 %
Operating Income $ 158.7 $ 175.7 (9.7) % Property and Equipment, Net 2,276.1 2,250.0 Land Rover / Jaguar 10 % 9 %
Floor Plan Interest Expense (21.8) (18.9) 15.3 % Operating Lease Right-of-Use Assets 2,340.6 Revenue: (Amounts in Millions) Porsche 5 % 6 %
Other Interest Expense (29.9) (29.8) 0.3 % Intangibles 2,247.9 2,238.2 Retail Automotive $ 5,091.2 $ 5,296.0 Ferrari / Maserati 3 % 3 %
Equity in Earnings of Affiliates 26.8 17.3 54.9 % Other Long-Term Assets 1,351.3 1,321.1 Retail Commercial Trucks 332.3 292.4 Lexus 3 % 2 %
Income from Continuing Operations Before Income Taxes $ 133.8 $ 144.3 (7.3) % Total Assets $ 13,499.1 $ 10,904.5 Commercial Vehicles Australia/Power Systems and Other 140.9 158.5 Acura 1 % 1 %
Income Taxes (34.7) (36.6) (5.2) % Total $ 5,564.4 $ 5,746.9 Bentley 1 % 1 %
Income from Continuing Operations $ 99.1 $ 107.7 (8.0) % Liabilities and Equity: Others 3 % 2 %
Income from Discontinued Operations, net of tax 0.1 0.1 nm Floor Plan Notes Payable $ 2,419.2 $ 2,362.2 Gross Profit: (Amounts in Millions) Total Premium 70 % 70 %
Net Income $ 99.2 $ 107.8 (8.0) % Floor Plan Notes Payable – Non-Trade 1,488.7 1,428.6 Retail Automotive $ 761.5 $ 778.3 Volume Non-U.S.:
Less: Loss Attributable to Non-Controlling Interests (1.0) (0.3) nm Accounts Payable 668.5 598.2 Retail Commercial Trucks 54.4 46.6 Toyota 9 % 9 %
Net Income Attributable to Common Shareholders $ 100.2 $ 108.1 (7.3) % Accrued Expenses and Other Current Liabilities 698.7 566.6 Commercial Vehicles Australia/Power Systems and Other 35.6 39.5 Honda 6 % 6 %
Current Portion Long-Term Debt 94.5 92.0 Total $ 851.5 $ 864.4 Volkswagen 4 % 4 %
Amounts Attributable to Common Shareholders: Liabilities Held for Sale 0.5 0.7 Nissan 1 % 1 %
Reported Income from Continuing Operations $ 99.1 $ 107.7 (8.0) % Total Current Liabilities 5,370.1 5,048.3 Gross Margin: Others 2 % 2 %
Less: Loss Attributable to Non-Controlling Interests (1.0) (0.3) nm Long-Term Debt 2,118.3 2,124.7 Retail Automotive 15.0 % 14.7 % Total Volume Non-U.S. 22 % 22 %
Income from Continuing Operations, net of tax $ 100.1 $ 108.0 (7.3) % Long-Term Operating Lease Liabilities 2,308.4 Retail Commercial Trucks 16.4 % 15.9 % U.S.:
Income from Discontinued Operations, net of tax 0.1 0.1 nm Other Long-Term Liabilities 1,040.6 1,096.8 Commercial Vehicles Australia/Power Systems and Other 25.3 % 24.9 % General Motors / Chrysler / Ford 2 % 2 %
Net Income Attributable to Common Shareholders $ 100.2 $ 108.1 (7.3) % Total Liabilities 10,837.4 8,269.8 Total 15.3 % 15.0 % Stand-Alone Used 6 % 6 %
Income from Continuing Operations Per Share $ 1.19 $ 1.26 (5.6) % Equity 2,661.7 2,634.7 Total 100 % 100 %
Income Per Share $ 1.19 $ 1.26 (5.6) % Total Liabilities and Equity $ 13,499.1 $ 10,904.5
Weighted Average Shares Outstanding 84.4 86.0 (1.9) % Three Months Ended Retail Automotive Geographic Revenue Mix:
Supplemental Balance Sheet Information March 31, U.S. 54 % 52 %
nm – not meaningful New vehicle days' supply 62 72 U.K. 40 % 41 %
Used vehicle days' supply 41 57 2019 2018 Other International 6 % 7 %
Operating Items as a Percentage of Revenue: Total 100 % 100 %
Gross Profit 15.3 % 15.0 %
Selling, General and Administrative Expenses 12.0 % 11.5 % Retail Automotive Geographic Gross Profit Mix:
Operating Income 2.9 % 3.1 % U.S. 58 % 57 %
Income from Continuing Operations Before Income Taxes 2.4 % 2.5 % U.K. 37 % 37 %
Other International 5 % 6 %
Operating Items as a Percentage of Total Gross Profit: Total 100 % 100 %
Selling, General and Administrative Expenses 78.3 % 76.7 %
Operating Income 18.6 % 20.3 %
Three Months Ended
March 31,
(Amounts in Millions) 2019 2018
EBITDA* $ 190.1 $ 199.7
Floorplan Credits $ 8.5 $ 8.5
Rent Expense $ 57.2 $ 57.9
Capital Expenditures $ 63.1 $ 64.7
Stock Repurchases $ 54.3 $ 50.0
___________________________
* See the following Non-GAAP reconciliation table.

 

 

J.D. Carlson Anthony R. Pordon PENSKE AUTOMOTIVE GROUP, INC. Consolidated Condensed Statements of Income (Amounts In Millions, Except Per Share Data) (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Consolidated Condensed Balance Sheets (Amounts In Millions) (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Consolidated Operations Selected Data (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Retail Automotive Operations Selected Data – Revenue and Gross Profit Mix (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Retail Automotive Operations Selected Data (Unaudited)
Actual Excl. F/X New Used F & I Executive Vice President and Executive Vice President Investor Relations
New Vehicles -9.4% -6.9% Actual $3,153 $1,301 $1,262 Chief Financial Officer and Corporate Development Three Months Ended March 31, December 31, Three Months Ended Three Months Ended Three Months Ended
Used Vehicles -0.5% +3.4% Change +$49 -$209 +$42 Penske Automotive Group, Inc. Penske Automotive Group, Inc. March 31, 2019 2018 March 31, March 31, March 31,
Finance & Insurance -0.4% +2.8% 248-648-2810 248-648-2540 2019 2018 Change Assets: 2019 2018 2019 2018 2019 2018 Change
Service & Parts +3.0% +5.6% Excl. Foreign Exchange $3,253 $1,347 $1,303 jcarlson@penskeautomotive.com tpordon@penskeautomotive.com Revenue $ 5,564.4 $ 5,746.9 (3.2) % Cash and Cash Equivalents $ 43.5 $ 39.4 Geographic Revenue Mix: Retail Automotive Revenue Mix: Retail Automotive Units:
Change +$149 -$163 +$83 Cost of Sales 4,712.9 4,882.5 (3.5) % Accounts Receivable, Net 1,034.1 929.1 North America 54.9 % 53.0 % Premium: New Retail 54,370 59,262 (8.3) %
Gross Profit $ 851.5 $ 864.4 (1.5) % Inventories 4,104.1 4,040.1 U.K. 36.7 % 38.2 % BMW / MINI 22 % 22 % Used Retail 72,744 73,228 (0.7) %
SG&A Expenses 666.4 663.1 0.5 % Other Current Assets 101.5 86.6 Other International 8.4 % 8.8 % Audi 12 % 14 % Total 127,114 132,490 (4.1) %
Depreciation 26.4 25.6 3.1 % Total Current Assets 5,283.2 5,095.2 Total 100.0 % 100.0 % Mercedes-Benz 10 % 10 %
Operating Income $ 158.7 $ 175.7 (9.7) % Property and Equipment, Net 2,276.1 2,250.0 Land Rover / Jaguar 10 % 9 % Retail Automotive Revenue: (Amounts in Millions)
Floor Plan Interest Expense (21.8) (18.9) 15.3 % Operating Lease Right-of-Use Assets 2,340.6 Revenue: (Amounts in Millions) Porsche 5 % 6 % New Vehicles $ 2,231.2 $ 2,446.8 (8.8) %
Other Interest Expense (29.9) (29.8) 0.3 % Intangibles 2,247.9 2,238.2 Retail Automotive $ 5,091.2 $ 5,296.0 Ferrari / Maserati 3 % 3 % Used Vehicles 1,852.0 1,866.8 (0.8) %
Equity in Earnings of Affiliates 26.8 17.3 54.9 % Other Long-Term Assets 1,351.3 1,321.1 Retail Commercial Trucks 332.3 292.4 Lexus 3 % 2 % Finance and Insurance, Net 160.0 160.8 (0.5) %
Income from Continuing Operations Before Income Taxes $ 133.8 $ 144.3 (7.3) % Total Assets $ 13,499.1 $ 10,904.5 Commercial Vehicles Australia/Power Systems and Other 140.9 158.5 Acura 1 % 1 % Service and Parts 559.8 543.5 3.0 %
Income Taxes (34.7) (36.6) (5.2) % Total $ 5,564.4 $ 5,746.9 Bentley 1 % 1 % Fleet and Wholesale 288.2 278.1 3.6 %
Income from Continuing Operations $ 99.1 $ 107.7 (8.0) % Liabilities and Equity: Others 3 % 2 % Total Revenue $ 5,091.2 $ 5,296.0 (3.9) %
Income from Discontinued Operations, net of tax 0.1 0.1 nm Floor Plan Notes Payable $ 2,419.2 $ 2,362.2 Gross Profit: (Amounts in Millions) Total Premium 70 % 70 %
Net Income $ 99.2 $ 107.8 (8.0) % Floor Plan Notes Payable – Non-Trade 1,488.7 1,428.6 Retail Automotive $ 761.5 $ 778.3 Volume Non-U.S.: Retail Automotive Gross Profit: (Amounts in Millions)
Less: Loss Attributable to Non-Controlling Interests (1.0) (0.3) nm Accounts Payable 668.5 598.2 Retail Commercial Trucks 54.4 46.6 Toyota 9 % 9 % New Vehicles $ 172.7 $ 183.2 (5.7) %
Net Income Attributable to Common Shareholders $ 100.2 $ 108.1 (7.3) % Accrued Expenses and Other Current Liabilities 698.7 566.6 Commercial Vehicles Australia/Power Systems and Other 35.6 39.5 Honda 6 % 6 % Used Vehicles 92.9 109.7 (15.3) %
Current Portion Long-Term Debt 94.5 92.0 Total $ 851.5 $ 864.4 Volkswagen 4 % 4 % Finance and Insurance, Net 160.0 160.8 (0.5) %
Amounts Attributable to Common Shareholders: Liabilities Held for Sale 0.5 0.7 Nissan 1 % 1 % Service and Parts 331.4 318.1 4.2 %
Reported Income from Continuing Operations $ 99.1 $ 107.7 (8.0) % Total Current Liabilities 5,370.1 5,048.3 Gross Margin: Others 2 % 2 % Fleet and Wholesale 4.5 6.5 (30.8) %
Less: Loss Attributable to Non-Controlling Interests (1.0) (0.3) nm Long-Term Debt 2,118.3 2,124.7 Retail Automotive 15.0 % 14.7 % Total Volume Non-U.S. 22 % 22 % Total Gross Profit $ 761.5 $ 778.3 (2.2) %
Income from Continuing Operations, net of tax $ 100.1 $ 108.0 (7.3) % Long-Term Operating Lease Liabilities 2,308.4 Retail Commercial Trucks 16.4 % 15.9 % U.S.:
Income from Discontinued Operations, net of tax 0.1 0.1 nm Other Long-Term Liabilities 1,040.6 1,096.8 Commercial Vehicles Australia/Power Systems and Other 25.3 % 24.9 % General Motors / Chrysler / Ford 2 % 2 % Retail Automotive Revenue Per Vehicle Retailed:
Net Income Attributable to Common Shareholders $ 100.2 $ 108.1 (7.3) % Total Liabilities 10,837.4 8,269.8 Total 15.3 % 15.0 % Stand-Alone Used 6 % 6 % New Vehicles $ 41,037 $ 41,288 (0.6) %
Income from Continuing Operations Per Share $ 1.19 $ 1.26 (5.6) % Equity 2,661.7 2,634.7 Total 100 % 100 % Used Vehicles 25,459 25,493 (0.1) %
Income Per Share $ 1.19 $ 1.26 (5.6) % Total Liabilities and Equity $ 13,499.1 $ 10,904.5
Weighted Average Shares Outstanding 84.4 86.0 (1.9) % Three Months Ended Retail Automotive Geographic Revenue Mix: Retail Automotive Gross Profit Per Vehicle Retailed:
Supplemental Balance Sheet Information March 31, U.S. 54 % 52 % New Vehicles $ 3,176 $ 3,091 2.7 %
nm – not meaningful New vehicle days' supply 62 72 U.K. 40 % 41 % Used Vehicles 1,278 1,498 (14.7) %
Used vehicle days' supply 41 57 2019 2018 Other International 6 % 7 % Finance and Insurance 1,259 1,213 3.8 %
Operating Items as a Percentage of Revenue: Total 100 % 100 %
Gross Profit 15.3 % 15.0 % Retail Automotive Gross Margin:
Selling, General and Administrative Expenses 12.0 % 11.5 % Retail Automotive Geographic Gross Profit Mix: New Vehicles 7.7 % 7.5 % +20 bps
Operating Income 2.9 % 3.1 % U.S. 58 % 57 % Used Vehicles 5.0 % 5.9 % -90 bps
Income from Continuing Operations Before Income Taxes 2.4 % 2.5 % U.K. 37 % 37 % Service and Parts 59.2 % 58.5 % +70 bps
Other International 5 % 6 % Fleet and Wholesale 1.6 % 2.3 % -70 bps
Operating Items as a Percentage of Total Gross Profit: Total 100 % 100 % Total Gross Margin 15.0 % 14.7 % +30 bps
Selling, General and Administrative Expenses 78.3 % 76.7 %
Operating Income 18.6 % 20.3 % Retail Automotive Revenue Mix Percentages:
New Vehicles 43.8 % 46.2 % -240 bps
Used Vehicles 36.4 % 35.2 % +120 bps
Three Months Ended Finance and Insurance, Net 3.1 % 3.0 % +10 bps
March 31, Service and Parts 11.0 % 10.3 % +70 bps
Fleet and Wholesale 5.7 % 5.3 % +40 bps
(Amounts in Millions) 2019 2018 Total 100.0 % 100.0 %
EBITDA* $ 190.1 $ 199.7 Retail Automotive Gross Profit Mix Percentages:
Floorplan Credits $ 8.5 $ 8.5 New Vehicles 22.7 % 23.5 % -80 bps
Rent Expense $ 57.2 $ 57.9 Used Vehicles 12.2 % 14.1 % -190 bps
Capital Expenditures $ 63.1 $ 64.7 Finance and Insurance, Net 21.0 % 20.7 % +30 bps
Stock Repurchases $ 54.3 $ 50.0 Service and Parts 43.5 % 40.9 % +260 bps
___________________________ Fleet and Wholesale 0.6 % 0.8 % -20 bps
* See the following Non-GAAP reconciliation table. Total 100.0 % 100.0 %

 

 

J.D. Carlson Anthony R. Pordon PENSKE AUTOMOTIVE GROUP, INC. Consolidated Condensed Statements of Income (Amounts In Millions, Except Per Share Data) (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Consolidated Condensed Balance Sheets (Amounts In Millions) (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Consolidated Operations Selected Data (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Retail Automotive Operations Selected Data – Revenue and Gross Profit Mix (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Retail Automotive Operations Selected Data (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Retail Automotive Operations Same-Store Selected Data (Unaudited)
Actual Excl. F/X New Used F & I Executive Vice President and Executive Vice President Investor Relations
New Vehicles -9.4% -6.9% Actual $3,153 $1,301 $1,262 Chief Financial Officer and Corporate Development Three Months Ended March 31, December 31, Three Months Ended Three Months Ended Three Months Ended Three Months Ended
Used Vehicles -0.5% +3.4% Change +$49 -$209 +$42 Penske Automotive Group, Inc. Penske Automotive Group, Inc. March 31, 2019 2018 March 31, March 31, March 31, March 31,
Finance & Insurance -0.4% +2.8% 248-648-2810 248-648-2540 2019 2018 Change Assets: 2019 2018 2019 2018 2019 2018 Change 2019 2018 Change
Service & Parts +3.0% +5.6% Excl. Foreign Exchange $3,253 $1,347 $1,303 jcarlson@penskeautomotive.com tpordon@penskeautomotive.com Revenue $ 5,564.4 $ 5,746.9 (3.2) % Cash and Cash Equivalents $ 43.5 $ 39.4 Geographic Revenue Mix: Retail Automotive Revenue Mix: Retail Automotive Units: Retail Automotive Same-Store Units:
Change +$149 -$163 +$83 Cost of Sales 4,712.9 4,882.5 (3.5) % Accounts Receivable, Net 1,034.1 929.1 North America 54.9 % 53.0 % Premium: New Retail 54,370 59,262 (8.3) % New Retail 53,112 58,062 (8.5) %
Gross Profit $ 851.5 $ 864.4 (1.5) % Inventories 4,104.1 4,040.1 U.K. 36.7 % 38.2 % BMW / MINI 22 % 22 % Used Retail 72,744 73,228 (0.7) % Used Retail 71,613 71,532 0.1 %
SG&A Expenses 666.4 663.1 0.5 % Other Current Assets 101.5 86.6 Other International 8.4 % 8.8 % Audi 12 % 14 % Total 127,114 132,490 (4.1) % Total 124,725 129,594 (3.8) %
Depreciation 26.4 25.6 3.1 % Total Current Assets 5,283.2 5,095.2 Total 100.0 % 100.0 % Mercedes-Benz 10 % 10 %
Operating Income $ 158.7 $ 175.7 (9.7) % Property and Equipment, Net 2,276.1 2,250.0 Land Rover / Jaguar 10 % 9 % Retail Automotive Revenue: (Amounts in Millions) Retail Automotive Same-Store Revenue: (Amounts in Millions)
Floor Plan Interest Expense (21.8) (18.9) 15.3 % Operating Lease Right-of-Use Assets 2,340.6 Revenue: (Amounts in Millions) Porsche 5 % 6 % New Vehicles $ 2,231.2 $ 2,446.8 (8.8) % New Vehicles $ 2,171.2 $ 2,397.3 (9.4) %
Other Interest Expense (29.9) (29.8) 0.3 % Intangibles 2,247.9 2,238.2 Retail Automotive $ 5,091.2 $ 5,296.0 Ferrari / Maserati 3 % 3 % Used Vehicles 1,852.0 1,866.8 (0.8) % Used Vehicles 1,823.4 1,832.1 (0.5) %
Equity in Earnings of Affiliates 26.8 17.3 54.9 % Other Long-Term Assets 1,351.3 1,321.1 Retail Commercial Trucks 332.3 292.4 Lexus 3 % 2 % Finance and Insurance, Net 160.0 160.8 (0.5) % Finance and Insurance, Net 157.5 158.2 (0.4) %
Income from Continuing Operations Before Income Taxes $ 133.8 $ 144.3 (7.3) % Total Assets $ 13,499.1 $ 10,904.5 Commercial Vehicles Australia/Power Systems and Other 140.9 158.5 Acura 1 % 1 % Service and Parts 559.8 543.5 3.0 % Service and Parts 547.5 531.4 3.0 %
Income Taxes (34.7) (36.6) (5.2) % Total $ 5,564.4 $ 5,746.9 Bentley 1 % 1 % Fleet and Wholesale 288.2 278.1 3.6 % Fleet and Wholesale 280.2 271.6 3.2 %
Income from Continuing Operations $ 99.1 $ 107.7 (8.0) % Liabilities and Equity: Others 3 % 2 % Total Revenue $ 5,091.2 $ 5,296.0 (3.9) % Total Revenue $ 4,979.8 $ 5,190.6 (4.1) %
Income from Discontinued Operations, net of tax 0.1 0.1 nm Floor Plan Notes Payable $ 2,419.2 $ 2,362.2 Gross Profit: (Amounts in Millions) Total Premium 70 % 70 %
Net Income $ 99.2 $ 107.8 (8.0) % Floor Plan Notes Payable – Non-Trade 1,488.7 1,428.6 Retail Automotive $ 761.5 $ 778.3 Volume Non-U.S.: Retail Automotive Gross Profit: (Amounts in Millions) Retail Automotive Same-Store Gross Profit: (Amounts in Millions)
Less: Loss Attributable to Non-Controlling Interests (1.0) (0.3) nm Accounts Payable 668.5 598.2 Retail Commercial Trucks 54.4 46.6 Toyota 9 % 9 % New Vehicles $ 172.7 $ 183.2 (5.7) % New Vehicles $ 167.5 $ 180.2 (7.0) %
Net Income Attributable to Common Shareholders $ 100.2 $ 108.1 (7.3) % Accrued Expenses and Other Current Liabilities 698.7 566.6 Commercial Vehicles Australia/Power Systems and Other 35.6 39.5 Honda 6 % 6 % Used Vehicles 92.9 109.7 (15.3) % Used Vehicles 93.1 108.0 (13.8) %
Current Portion Long-Term Debt 94.5 92.0 Total $ 851.5 $ 864.4 Volkswagen 4 % 4 % Finance and Insurance, Net 160.0 160.8 (0.5) % Finance and Insurance, Net 157.5 158.2 (0.4) %
Amounts Attributable to Common Shareholders: Liabilities Held for Sale 0.5 0.7 Nissan 1 % 1 % Service and Parts 331.4 318.1 4.2 % Service and Parts 323.9 310.8 4.2 %
Reported Income from Continuing Operations $ 99.1 $ 107.7 (8.0) % Total Current Liabilities 5,370.1 5,048.3 Gross Margin: Others 2 % 2 % Fleet and Wholesale 4.5 6.5 (30.8) % Fleet and Wholesale 4.5 6.7 (32.8) %
Less: Loss Attributable to Non-Controlling Interests (1.0) (0.3) nm Long-Term Debt 2,118.3 2,124.7 Retail Automotive 15.0 % 14.7 % Total Volume Non-U.S. 22 % 22 % Total Gross Profit $ 761.5 $ 778.3 (2.2) % Total Gross Profit $ 746.5 $ 763.9 (2.3) %
Income from Continuing Operations, net of tax $ 100.1 $ 108.0 (7.3) % Long-Term Operating Lease Liabilities 2,308.4 Retail Commercial Trucks 16.4 % 15.9 % U.S.:
Income from Discontinued Operations, net of tax 0.1 0.1 nm Other Long-Term Liabilities 1,040.6 1,096.8 Commercial Vehicles Australia/Power Systems and Other 25.3 % 24.9 % General Motors / Chrysler / Ford 2 % 2 % Retail Automotive Revenue Per Vehicle Retailed: Retail Automotive Same-Store Revenue Per Vehicle Retailed:
Net Income Attributable to Common Shareholders $ 100.2 $ 108.1 (7.3) % Total Liabilities 10,837.4 8,269.8 Total 15.3 % 15.0 % Stand-Alone Used 6 % 6 % New Vehicles $ 41,037 $ 41,288 (0.6) % New Vehicles $ 40,880 $ 41,288 (1.0) %
Income from Continuing Operations Per Share $ 1.19 $ 1.26 (5.6) % Equity 2,661.7 2,634.7 Total 100 % 100 % Used Vehicles 25,459 25,493 (0.1) % Used Vehicles 25,462 25,612 (0.6) %
Income Per Share $ 1.19 $ 1.26 (5.6) % Total Liabilities and Equity $ 13,499.1 $ 10,904.5
Weighted Average Shares Outstanding 84.4 86.0 (1.9) % Three Months Ended Retail Automotive Geographic Revenue Mix: Retail Automotive Gross Profit Per Vehicle Retailed: Retail Automotive Same-Store Gross Profit Per Vehicle Retailed:
Supplemental Balance Sheet Information March 31, U.S. 54 % 52 % New Vehicles $ 3,176 $ 3,091 2.7 % New Vehicles $ 3,153 $ 3,104 1.6 %
nm – not meaningful New vehicle days' supply 62 72 U.K. 40 % 41 % Used Vehicles 1,278 1,498 (14.7) % Used Vehicles 1,301 1,510 (13.8) %
Used vehicle days' supply 41 57 2019 2018 Other International 6 % 7 % Finance and Insurance 1,259 1,213 3.8 % Finance and Insurance 1,262 1,220 3.4 %
Operating Items as a Percentage of Revenue: Total 100 % 100 %
Gross Profit 15.3 % 15.0 % Retail Automotive Gross Margin: Retail Automotive Same-Store Gross Margin:
Selling, General and Administrative Expenses 12.0 % 11.5 % Retail Automotive Geographic Gross Profit Mix: New Vehicles 7.7 % 7.5 % +20 bps New Vehicles 7.7 % 7.5 % +20 bps
Operating Income 2.9 % 3.1 % U.S. 58 % 57 % Used Vehicles 5.0 % 5.9 % -90 bps Used Vehicles 5.1 % 5.9 % -80 bps
Income from Continuing Operations Before Income Taxes 2.4 % 2.5 % U.K. 37 % 37 % Service and Parts 59.2 % 58.5 % +70 bps Service and Parts 59.2 % 58.5 % +70 bps
Other International 5 % 6 % Fleet and Wholesale 1.6 % 2.3 % -70 bps Fleet and Wholesale 1.6 % 2.5 % -90 bps
Operating Items as a Percentage of Total Gross Profit: Total 100 % 100 % Total Gross Margin 15.0 % 14.7 % +30 bps Total Gross Margin 15.0 % 14.7 % +30 bps
Selling, General and Administrative Expenses 78.3 % 76.7 %
Operating Income 18.6 % 20.3 % Retail Automotive Revenue Mix Percentages: Retail Automotive Revenue Mix Percentages:
New Vehicles 43.8 % 46.2 % -240 bps New Vehicles 43.6 % 46.2 % -260 bps
Used Vehicles 36.4 % 35.2 % +120 bps Used Vehicles 36.6 % 35.3 % +130 bps
Three Months Ended Finance and Insurance, Net 3.1 % 3.0 % +10 bps Finance and Insurance, Net 3.2 % 3.0 % +20 bps
March 31, Service and Parts 11.0 % 10.3 % +70 bps Service and Parts 11.0 % 10.2 % +80 bps
Fleet and Wholesale 5.7 % 5.3 % +40 bps Fleet and Wholesale 5.6 % 5.3 % +30 bps
(Amounts in Millions) 2019 2018 Total 100.0 % 100.0 % Total 100.0 % 100.0 %
EBITDA* $ 190.1 $ 199.7 Retail Automotive Gross Profit Mix Percentages: Retail Automotive Gross Profit Mix Percentages:
Floorplan Credits $ 8.5 $ 8.5 New Vehicles 22.7 % 23.5 % -80 bps New Vehicles 22.4 % 23.6 % -120 bps
Rent Expense $ 57.2 $ 57.9 Used Vehicles 12.2 % 14.1 % -190 bps Used Vehicles 12.5 % 14.1 % -160 bps
Capital Expenditures $ 63.1 $ 64.7 Finance and Insurance, Net 21.0 % 20.7 % +30 bps Finance and Insurance, Net 21.1 % 20.7 % +40 bps
Stock Repurchases $ 54.3 $ 50.0 Service and Parts 43.5 % 40.9 % +260 bps Service and Parts 43.4 % 40.7 % +270 bps
___________________________ Fleet and Wholesale 0.6 % 0.8 % -20 bps Fleet and Wholesale 0.6 % 0.9 % -30 bps
* See the following Non-GAAP reconciliation table. Total 100.0 % 100.0 % Total 100.0 % 100.0 %

 

 

J.D. Carlson Anthony R. Pordon PENSKE AUTOMOTIVE GROUP, INC. Consolidated Condensed Statements of Income (Amounts In Millions, Except Per Share Data) (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Consolidated Condensed Balance Sheets (Amounts In Millions) (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Consolidated Operations Selected Data (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Retail Automotive Operations Selected Data – Revenue and Gross Profit Mix (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Retail Automotive Operations Selected Data (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Retail Automotive Operations Same-Store Selected Data (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Retail Commercial Truck Operations Selected Data (Unaudited)
Actual Excl. F/X New Used F & I Executive Vice President and Executive Vice President Investor Relations
New Vehicles -9.4% -6.9% Actual $3,153 $1,301 $1,262 Chief Financial Officer and Corporate Development Three Months Ended March 31, December 31, Three Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended
Used Vehicles -0.5% +3.4% Change +$49 -$209 +$42 Penske Automotive Group, Inc. Penske Automotive Group, Inc. March 31, 2019 2018 March 31, March 31, March 31, March 31, March 31,
Finance & Insurance -0.4% +2.8% 248-648-2810 248-648-2540 2019 2018 Change Assets: 2019 2018 2019 2018 2019 2018 Change 2019 2018 Change 2019 2018 Change
Service & Parts +3.0% +5.6% Excl. Foreign Exchange $3,253 $1,347 $1,303 jcarlson@penskeautomotive.com tpordon@penskeautomotive.com Revenue $ 5,564.4 $ 5,746.9 (3.2) % Cash and Cash Equivalents $ 43.5 $ 39.4 Geographic Revenue Mix: Retail Automotive Revenue Mix: Retail Automotive Units: Retail Automotive Same-Store Units: Retail Commercial Truck Units:
Change +$149 -$163 +$83 Cost of Sales 4,712.9 4,882.5 (3.5) % Accounts Receivable, Net 1,034.1 929.1 North America 54.9 % 53.0 % Premium: New Retail 54,370 59,262 (8.3) % New Retail 53,112 58,062 (8.5) % New Retail 1,887 1,655 14.0 %
Gross Profit $ 851.5 $ 864.4 (1.5) % Inventories 4,104.1 4,040.1 U.K. 36.7 % 38.2 % BMW / MINI 22 % 22 % Used Retail 72,744 73,228 (0.7) % Used Retail 71,613 71,532 0.1 % Used Retail 416 451 (7.8) %
SG&A Expenses 666.4 663.1 0.5 % Other Current Assets 101.5 86.6 Other International 8.4 % 8.8 % Audi 12 % 14 % Total 127,114 132,490 (4.1) % Total 124,725 129,594 (3.8) % Total 2,303 2,106 9.4 %
Depreciation 26.4 25.6 3.1 % Total Current Assets 5,283.2 5,095.2 Total 100.0 % 100.0 % Mercedes-Benz 10 % 10 %
Operating Income $ 158.7 $ 175.7 (9.7) % Property and Equipment, Net 2,276.1 2,250.0 Land Rover / Jaguar 10 % 9 % Retail Automotive Revenue: (Amounts in Millions) Retail Automotive Same-Store Revenue: (Amounts in Millions) Retail Commercial Truck Revenue: (Amounts in Millions)
Floor Plan Interest Expense (21.8) (18.9) 15.3 % Operating Lease Right-of-Use Assets 2,340.6 Revenue: (Amounts in Millions) Porsche 5 % 6 % New Vehicles $ 2,231.2 $ 2,446.8 (8.8) % New Vehicles $ 2,171.2 $ 2,397.3 (9.4) % New Vehicles $ 207.4 $ 170.4 21.7 %
Other Interest Expense (29.9) (29.8) 0.3 % Intangibles 2,247.9 2,238.2 Retail Automotive $ 5,091.2 $ 5,296.0 Ferrari / Maserati 3 % 3 % Used Vehicles 1,852.0 1,866.8 (0.8) % Used Vehicles 1,823.4 1,832.1 (0.5) % Used Vehicles 24.1 26.5 (9.1) %
Equity in Earnings of Affiliates 26.8 17.3 54.9 % Other Long-Term Assets 1,351.3 1,321.1 Retail Commercial Trucks 332.3 292.4 Lexus 3 % 2 % Finance and Insurance, Net 160.0 160.8 (0.5) % Finance and Insurance, Net 157.5 158.2 (0.4) % Finance and Insurance, Net 3.0 3.2 (6.3) %
Income from Continuing Operations Before Income Taxes $ 133.8 $ 144.3 (7.3) % Total Assets $ 13,499.1 $ 10,904.5 Commercial Vehicles Australia/Power Systems and Other 140.9 158.5 Acura 1 % 1 % Service and Parts 559.8 543.5 3.0 % Service and Parts 547.5 531.4 3.0 % Service and Parts 91.5 90.4 1.2 %
Income Taxes (34.7) (36.6) (5.2) % Total $ 5,564.4 $ 5,746.9 Bentley 1 % 1 % Fleet and Wholesale 288.2 278.1 3.6 % Fleet and Wholesale 280.2 271.6 3.2 % Other 6.3 1.9 231.6 %
Income from Continuing Operations $ 99.1 $ 107.7 (8.0) % Liabilities and Equity: Others 3 % 2 % Total Revenue $ 5,091.2 $ 5,296.0 (3.9) % Total Revenue $ 4,979.8 $ 5,190.6 (4.1) % Total Revenue $ 332.3 $ 292.4 13.6 %
Income from Discontinued Operations, net of tax 0.1 0.1 nm Floor Plan Notes Payable $ 2,419.2 $ 2,362.2 Gross Profit: (Amounts in Millions) Total Premium 70 % 70 %
Net Income $ 99.2 $ 107.8 (8.0) % Floor Plan Notes Payable – Non-Trade 1,488.7 1,428.6 Retail Automotive $ 761.5 $ 778.3 Volume Non-U.S.: Retail Automotive Gross Profit: (Amounts in Millions) Retail Automotive Same-Store Gross Profit: (Amounts in Millions) Retail Commercial Truck Gross Profit: (Amounts in Millions)
Less: Loss Attributable to Non-Controlling Interests (1.0) (0.3) nm Accounts Payable 668.5 598.2 Retail Commercial Trucks 54.4 46.6 Toyota 9 % 9 % New Vehicles $ 172.7 $ 183.2 (5.7) % New Vehicles $ 167.5 $ 180.2 (7.0) % New Vehicles $ 10.2 $ 6.7 52.2 %
Net Income Attributable to Common Shareholders $ 100.2 $ 108.1 (7.3) % Accrued Expenses and Other Current Liabilities 698.7 566.6 Commercial Vehicles Australia/Power Systems and Other 35.6 39.5 Honda 6 % 6 % Used Vehicles 92.9 109.7 (15.3) % Used Vehicles 93.1 108.0 (13.8) % Used Vehicles 2.7 2.7 %
Current Portion Long-Term Debt 94.5 92.0 Total $ 851.5 $ 864.4 Volkswagen 4 % 4 % Finance and Insurance, Net 160.0 160.8 (0.5) % Finance and Insurance, Net 157.5 158.2 (0.4) % Finance and Insurance, Net 3.0 3.2 (6.3) %
Amounts Attributable to Common Shareholders: Liabilities Held for Sale 0.5 0.7 Nissan 1 % 1 % Service and Parts 331.4 318.1 4.2 % Service and Parts 323.9 310.8 4.2 % Service and Parts 36.1 34.0 6.2 %
Reported Income from Continuing Operations $ 99.1 $ 107.7 (8.0) % Total Current Liabilities 5,370.1 5,048.3 Gross Margin: Others 2 % 2 % Fleet and Wholesale 4.5 6.5 (30.8) % Fleet and Wholesale 4.5 6.7 (32.8) % Other 2.4 nm
Less: Loss Attributable to Non-Controlling Interests (1.0) (0.3) nm Long-Term Debt 2,118.3 2,124.7 Retail Automotive 15.0 % 14.7 % Total Volume Non-U.S. 22 % 22 % Total Gross Profit $ 761.5 $ 778.3 (2.2) % Total Gross Profit $ 746.5 $ 763.9 (2.3) % Total Gross Profit $ 54.4 $ 46.6 16.7 %
Income from Continuing Operations, net of tax $ 100.1 $ 108.0 (7.3) % Long-Term Operating Lease Liabilities 2,308.4 Retail Commercial Trucks 16.4 % 15.9 % U.S.:
Income from Discontinued Operations, net of tax 0.1 0.1 nm Other Long-Term Liabilities 1,040.6 1,096.8 Commercial Vehicles Australia/Power Systems and Other 25.3 % 24.9 % General Motors / Chrysler / Ford 2 % 2 % Retail Automotive Revenue Per Vehicle Retailed: Retail Automotive Same-Store Revenue Per Vehicle Retailed: Retail Commercial Truck Revenue Per Vehicle Retailed:
Net Income Attributable to Common Shareholders $ 100.2 $ 108.1 (7.3) % Total Liabilities 10,837.4 8,269.8 Total 15.3 % 15.0 % Stand-Alone Used 6 % 6 % New Vehicles $ 41,037 $ 41,288 (0.6) % New Vehicles $ 40,880 $ 41,288 (1.0) % New Vehicles $ 109,887 $ 102,978 6.7 %
Income from Continuing Operations Per Share $ 1.19 $ 1.26 (5.6) % Equity 2,661.7 2,634.7 Total 100 % 100 % Used Vehicles 25,459 25,493 (0.1) % Used Vehicles 25,462 25,612 (0.6) % Used Vehicles 58,032 58,708 (1.2) %
Income Per Share $ 1.19 $ 1.26 (5.6) % Total Liabilities and Equity $ 13,499.1 $ 10,904.5
Weighted Average Shares Outstanding 84.4 86.0 (1.9) % Three Months Ended Retail Automotive Geographic Revenue Mix: Retail Automotive Gross Profit Per Vehicle Retailed: Retail Automotive Same-Store Gross Profit Per Vehicle Retailed: Retail Commercial Truck Gross Profit Per Vehicle Retailed:
Supplemental Balance Sheet Information March 31, U.S. 54 % 52 % New Vehicles $ 3,176 $ 3,091 2.7 % New Vehicles $ 3,153 $ 3,104 1.6 % New Vehicles $ 5,391 $ 4,067 32.6 %
nm – not meaningful New vehicle days' supply 62 72 U.K. 40 % 41 % Used Vehicles 1,278 1,498 (14.7) % Used Vehicles 1,301 1,510 (13.8) % Used Vehicles 6,557 5,829 12.5 %
Used vehicle days' supply 41 57 2019 2018 Other International 6 % 7 % Finance and Insurance 1,259 1,213 3.8 % Finance and Insurance 1,262 1,220 3.4 % Finance and Insurance 1,309 1,520 (13.9) %
Operating Items as a Percentage of Revenue: Total 100 % 100 %
Gross Profit 15.3 % 15.0 % Retail Automotive Gross Margin: Retail Automotive Same-Store Gross Margin: Retail Commercial Truck Gross Margin:
Selling, General and Administrative Expenses 12.0 % 11.5 % Retail Automotive Geographic Gross Profit Mix: New Vehicles 7.7 % 7.5 % +20 bps New Vehicles 7.7 % 7.5 % +20 bps New Vehicles 4.9 % 3.9 % +100 bps
Operating Income 2.9 % 3.1 % U.S. 58 % 57 % Used Vehicles 5.0 % 5.9 % -90 bps Used Vehicles 5.1 % 5.9 % -80 bps Used Vehicles 11.2 % 10.2 % +100 bps
Income from Continuing Operations Before Income Taxes 2.4 % 2.5 % U.K. 37 % 37 % Service and Parts 59.2 % 58.5 % +70 bps Service and Parts 59.2 % 58.5 % +70 bps Service and Parts 39.5 % 37.6 % +190 bps
Other International 5 % 6 % Fleet and Wholesale 1.6 % 2.3 % -70 bps Fleet and Wholesale 1.6 % 2.5 % -90 bps Total Gross Margin 16.4 % 15.9 % +50 bps
Operating Items as a Percentage of Total Gross Profit: Total 100 % 100 % Total Gross Margin 15.0 % 14.7 % +30 bps Total Gross Margin 15.0 % 14.7 % +30 bps
Selling, General and Administrative Expenses 78.3 % 76.7 % Retail Commercial Truck Revenue Mix Percentages:
Operating Income 18.6 % 20.3 % Retail Automotive Revenue Mix Percentages: Retail Automotive Revenue Mix Percentages: New Vehicles 62.4 % 58.3 % +410 bps
New Vehicles 43.8 % 46.2 % -240 bps New Vehicles 43.6 % 46.2 % -260 bps Used Vehicles 7.3 % 9.1 % -180 bps
Used Vehicles 36.4 % 35.2 % +120 bps Used Vehicles 36.6 % 35.3 % +130 bps Finance and Insurance, Net 0.9 % 1.1 % -20 bps
Three Months Ended Finance and Insurance, Net 3.1 % 3.0 % +10 bps Finance and Insurance, Net 3.2 % 3.0 % +20 bps Service and Parts 27.5 % 30.9 % -340 bps
March 31, Service and Parts 11.0 % 10.3 % +70 bps Service and Parts 11.0 % 10.2 % +80 bps Other 1.9 % 0.6 % +130 bps
Fleet and Wholesale 5.7 % 5.3 % +40 bps Fleet and Wholesale 5.6 % 5.3 % +30 bps Total 100.0 % 100.0 %
(Amounts in Millions) 2019 2018 Total 100.0 % 100.0 % Total 100.0 % 100.0 %
Retail Commercial Truck Gross Profit Mix Percentages:
EBITDA* $ 190.1 $ 199.7 Retail Automotive Gross Profit Mix Percentages: Retail Automotive Gross Profit Mix Percentages: New Vehicles 18.8 % 14.4 % +440 bps
Floorplan Credits $ 8.5 $ 8.5 New Vehicles 22.7 % 23.5 % -80 bps New Vehicles 22.4 % 23.6 % -120 bps Used Vehicles 5.0 % 5.8 % -80 bps
Rent Expense $ 57.2 $ 57.9 Used Vehicles 12.2 % 14.1 % -190 bps Used Vehicles 12.5 % 14.1 % -160 bps Finance and Insurance, Net 5.5 % 6.8 % -130 bps
Capital Expenditures $ 63.1 $ 64.7 Finance and Insurance, Net 21.0 % 20.7 % +30 bps Finance and Insurance, Net 21.1 % 20.7 % +40 bps Service and Parts 66.4 % 73.0 % -660 bps
Stock Repurchases $ 54.3 $ 50.0 Service and Parts 43.5 % 40.9 % +260 bps Service and Parts 43.4 % 40.7 % +270 bps Other 4.3 % % +430 bps
___________________________ Fleet and Wholesale 0.6 % 0.8 % -20 bps Fleet and Wholesale 0.6 % 0.9 % -30 bps Total 100.0 % 100.0 %
* See the following Non-GAAP reconciliation table. Total 100.0 % 100.0 % Total 100.0 % 100.0 %

 

 

J.D. Carlson Anthony R. Pordon PENSKE AUTOMOTIVE GROUP, INC. Consolidated Condensed Statements of Income (Amounts In Millions, Except Per Share Data) (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Consolidated Condensed Balance Sheets (Amounts In Millions) (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Consolidated Operations Selected Data (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Retail Automotive Operations Selected Data – Revenue and Gross Profit Mix (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Retail Automotive Operations Selected Data (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Retail Automotive Operations Same-Store Selected Data (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Retail Commercial Truck Operations Selected Data (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Retail Commercial Truck Operations Same-Store Selected Data (Unaudited)
Actual Excl. F/X New Used F & I Executive Vice President and Executive Vice President Investor Relations
New Vehicles -9.4% -6.9% Actual $3,153 $1,301 $1,262 Chief Financial Officer and Corporate Development Three Months Ended March 31, December 31, Three Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended
Used Vehicles -0.5% +3.4% Change +$49 -$209 +$42 Penske Automotive Group, Inc. Penske Automotive Group, Inc. March 31, 2019 2018 March 31, March 31, March 31, March 31, March 31, March 31,
Finance & Insurance -0.4% +2.8% 248-648-2810 248-648-2540 2019 2018 Change Assets: 2019 2018 2019 2018 2019 2018 Change 2019 2018 Change 2019 2018 Change 2019 2018 Change
Service & Parts +3.0% +5.6% Excl. Foreign Exchange $3,253 $1,347 $1,303 jcarlson@penskeautomotive.com tpordon@penskeautomotive.com Revenue $ 5,564.4 $ 5,746.9 (3.2) % Cash and Cash Equivalents $ 43.5 $ 39.4 Geographic Revenue Mix: Retail Automotive Revenue Mix: Retail Automotive Units: Retail Automotive Same-Store Units: Retail Commercial Truck Units: Retail Commercial Truck Same-Store Units:
Change +$149 -$163 +$83 Cost of Sales 4,712.9 4,882.5 (3.5) % Accounts Receivable, Net 1,034.1 929.1 North America 54.9 % 53.0 % Premium: New Retail 54,370 59,262 (8.3) % New Retail 53,112 58,062 (8.5) % New Retail 1,887 1,655 14.0 % New Retail 1,859 1,655 12.3 %
Gross Profit $ 851.5 $ 864.4 (1.5) % Inventories 4,104.1 4,040.1 U.K. 36.7 % 38.2 % BMW / MINI 22 % 22 % Used Retail 72,744 73,228 (0.7) % Used Retail 71,613 71,532 0.1 % Used Retail 416 451 (7.8) % Used Retail 409 451 (9.3) %
SG&A Expenses 666.4 663.1 0.5 % Other Current Assets 101.5 86.6 Other International 8.4 % 8.8 % Audi 12 % 14 % Total 127,114 132,490 (4.1) % Total 124,725 129,594 (3.8) % Total 2,303 2,106 9.4 % Total 2,268 2,106 7.7 %
Depreciation 26.4 25.6 3.1 % Total Current Assets 5,283.2 5,095.2 Total 100.0 % 100.0 % Mercedes-Benz 10 % 10 %
Operating Income $ 158.7 $ 175.7 (9.7) % Property and Equipment, Net 2,276.1 2,250.0 Land Rover / Jaguar 10 % 9 % Retail Automotive Revenue: (Amounts in Millions) Retail Automotive Same-Store Revenue: (Amounts in Millions) Retail Commercial Truck Revenue: (Amounts in Millions) Retail Commercial Truck Same-Store Revenue: (Amounts in Millions)
Floor Plan Interest Expense (21.8) (18.9) 15.3 % Operating Lease Right-of-Use Assets 2,340.6 Revenue: (Amounts in Millions) Porsche 5 % 6 % New Vehicles $ 2,231.2 $ 2,446.8 (8.8) % New Vehicles $ 2,171.2 $ 2,397.3 (9.4) % New Vehicles $ 207.4 $ 170.4 21.7 % New Vehicles $ 204.0 $ 170.4 19.7 %
Other Interest Expense (29.9) (29.8) 0.3 % Intangibles 2,247.9 2,238.2 Retail Automotive $ 5,091.2 $ 5,296.0 Ferrari / Maserati 3 % 3 % Used Vehicles 1,852.0 1,866.8 (0.8) % Used Vehicles 1,823.4 1,832.1 (0.5) % Used Vehicles 24.1 26.5 (9.1) % Used Vehicles 24.4 26.5 (7.9) %
Equity in Earnings of Affiliates 26.8 17.3 54.9 % Other Long-Term Assets 1,351.3 1,321.1 Retail Commercial Trucks 332.3 292.4 Lexus 3 % 2 % Finance and Insurance, Net 160.0 160.8 (0.5) % Finance and Insurance, Net 157.5 158.2 (0.4) % Finance and Insurance, Net 3.0 3.2 (6.3) % Finance and Insurance, Net 4.8 3.2 50.0 %
Income from Continuing Operations Before Income Taxes $ 133.8 $ 144.3 (7.3) % Total Assets $ 13,499.1 $ 10,904.5 Commercial Vehicles Australia/Power Systems and Other 140.9 158.5 Acura 1 % 1 % Service and Parts 559.8 543.5 3.0 % Service and Parts 547.5 531.4 3.0 % Service and Parts 91.5 90.4 1.2 % Service and Parts 90.8 89.8 1.1 %
Income Taxes (34.7) (36.6) (5.2) % Total $ 5,564.4 $ 5,746.9 Bentley 1 % 1 % Fleet and Wholesale 288.2 278.1 3.6 % Fleet and Wholesale 280.2 271.6 3.2 % Other 6.3 1.9 231.6 % Other 4.0 1.9 110.5 %
Income from Continuing Operations $ 99.1 $ 107.7 (8.0) % Liabilities and Equity: Others 3 % 2 % Total Revenue $ 5,091.2 $ 5,296.0 (3.9) % Total Revenue $ 4,979.8 $ 5,190.6 (4.1) % Total Revenue $ 332.3 $ 292.4 13.6 % Total Revenue $ 328.0 $ 291.8 12.4 %
Income from Discontinued Operations, net of tax 0.1 0.1 nm Floor Plan Notes Payable $ 2,419.2 $ 2,362.2 Gross Profit: (Amounts in Millions) Total Premium 70 % 70 %
Net Income $ 99.2 $ 107.8 (8.0) % Floor Plan Notes Payable – Non-Trade 1,488.7 1,428.6 Retail Automotive $ 761.5 $ 778.3 Volume Non-U.S.: Retail Automotive Gross Profit: (Amounts in Millions) Retail Automotive Same-Store Gross Profit: (Amounts in Millions) Retail Commercial Truck Gross Profit: (Amounts in Millions) Retail Commercial Truck Same-Store Gross Profit: (Amounts in Millions)
Less: Loss Attributable to Non-Controlling Interests (1.0) (0.3) nm Accounts Payable 668.5 598.2 Retail Commercial Trucks 54.4 46.6 Toyota 9 % 9 % New Vehicles $ 172.7 $ 183.2 (5.7) % New Vehicles $ 167.5 $ 180.2 (7.0) % New Vehicles $ 10.2 $ 6.7 52.2 % New Vehicles $ 9.9 $ 6.7 47.8 %
Net Income Attributable to Common Shareholders $ 100.2 $ 108.1 (7.3) % Accrued Expenses and Other Current Liabilities 698.7 566.6 Commercial Vehicles Australia/Power Systems and Other 35.6 39.5 Honda 6 % 6 % Used Vehicles 92.9 109.7 (15.3) % Used Vehicles 93.1 108.0 (13.8) % Used Vehicles 2.7 2.7 % Used Vehicles 3.2 2.7 18.5 %
Current Portion Long-Term Debt 94.5 92.0 Total $ 851.5 $ 864.4 Volkswagen 4 % 4 % Finance and Insurance, Net 160.0 160.8 (0.5) % Finance and Insurance, Net 157.5 158.2 (0.4) % Finance and Insurance, Net 3.0 3.2 (6.3) % Finance and Insurance, Net 4.8 3.2 50.0 %
Amounts Attributable to Common Shareholders: Liabilities Held for Sale 0.5 0.7 Nissan 1 % 1 % Service and Parts 331.4 318.1 4.2 % Service and Parts 323.9 310.8 4.2 % Service and Parts 36.1 34.0 6.2 % Service and Parts 35.8 33.8 5.9 %
Reported Income from Continuing Operations $ 99.1 $ 107.7 (8.0) % Total Current Liabilities 5,370.1 5,048.3 Gross Margin: Others 2 % 2 % Fleet and Wholesale 4.5 6.5 (30.8) % Fleet and Wholesale 4.5 6.7 (32.8) % Other 2.4 nm Other nm
Less: Loss Attributable to Non-Controlling Interests (1.0) (0.3) nm Long-Term Debt 2,118.3 2,124.7 Retail Automotive 15.0 % 14.7 % Total Volume Non-U.S. 22 % 22 % Total Gross Profit $ 761.5 $ 778.3 (2.2) % Total Gross Profit $ 746.5 $ 763.9 (2.3) % Total Gross Profit $ 54.4 $ 46.6 16.7 % Total Gross Profit $ 53.7 $ 46.4 15.7 %
Income from Continuing Operations, net of tax $ 100.1 $ 108.0 (7.3) % Long-Term Operating Lease Liabilities 2,308.4 Retail Commercial Trucks 16.4 % 15.9 % U.S.:
Income from Discontinued Operations, net of tax 0.1 0.1 nm Other Long-Term Liabilities 1,040.6 1,096.8 Commercial Vehicles Australia/Power Systems and Other 25.3 % 24.9 % General Motors / Chrysler / Ford 2 % 2 % Retail Automotive Revenue Per Vehicle Retailed: Retail Automotive Same-Store Revenue Per Vehicle Retailed: Retail Commercial Truck Revenue Per Vehicle Retailed: Retail Commercial Truck Same-Store Revenue Per Vehicle Retailed:
Net Income Attributable to Common Shareholders $ 100.2 $ 108.1 (7.3) % Total Liabilities 10,837.4 8,269.8 Total 15.3 % 15.0 % Stand-Alone Used 6 % 6 % New Vehicles $ 41,037 $ 41,288 (0.6) % New Vehicles $ 40,880 $ 41,288 (1.0) % New Vehicles $ 109,887 $ 102,978 6.7 % New Vehicles $ 109,762 $ 102,978 6.6 %
Income from Continuing Operations Per Share $ 1.19 $ 1.26 (5.6) % Equity 2,661.7 2,634.7 Total 100 % 100 % Used Vehicles 25,459 25,493 (0.1) % Used Vehicles 25,462 25,612 (0.6) % Used Vehicles 58,032 58,708 (1.2) % Used Vehicles 59,682 58,708 1.7 %
Income Per Share $ 1.19 $ 1.26 (5.6) % Total Liabilities and Equity $ 13,499.1 $ 10,904.5
Weighted Average Shares Outstanding 84.4 86.0 (1.9) % Three Months Ended Retail Automotive Geographic Revenue Mix: Retail Automotive Gross Profit Per Vehicle Retailed: Retail Automotive Same-Store Gross Profit Per Vehicle Retailed: Retail Commercial Truck Gross Profit Per Vehicle Retailed: Retail Commercial Truck Same-Store Gross Profit Per Vehicle Retailed:
Supplemental Balance Sheet Information March 31, U.S. 54 % 52 % New Vehicles $ 3,176 $ 3,091 2.7 % New Vehicles $ 3,153 $ 3,104 1.6 % New Vehicles $ 5,391 $ 4,067 32.6 % New Vehicles $ 5,332 $ 4,067 31.1 %
nm – not meaningful New vehicle days' supply 62 72 U.K. 40 % 41 % Used Vehicles 1,278 1,498 (14.7) % Used Vehicles 1,301 1,510 (13.8) % Used Vehicles 6,557 5,829 12.5 % Used Vehicles 7,864 5,829 34.9 %
Used vehicle days' supply 41 57 2019 2018 Other International 6 % 7 % Finance and Insurance 1,259 1,213 3.8 % Finance and Insurance 1,262 1,220 3.4 % Finance and Insurance 1,309 1,520 (13.9) % Finance and Insurance 2,115 1,520 39.1 %
Operating Items as a Percentage of Revenue: Total 100 % 100 %
Gross Profit 15.3 % 15.0 % Retail Automotive Gross Margin: Retail Automotive Same-Store Gross Margin: Retail Commercial Truck Gross Margin: Retail Commercial Truck Same-Store Gross Margin:
Selling, General and Administrative Expenses 12.0 % 11.5 % Retail Automotive Geographic Gross Profit Mix: New Vehicles 7.7 % 7.5 % +20 bps New Vehicles 7.7 % 7.5 % +20 bps New Vehicles 4.9 % 3.9 % +100 bps New Vehicles 4.9 % 3.9 % +100 bps
Operating Income 2.9 % 3.1 % U.S. 58 % 57 % Used Vehicles 5.0 % 5.9 % -90 bps Used Vehicles 5.1 % 5.9 % -80 bps Used Vehicles 11.2 % 10.2 % +100 bps Used Vehicles 13.1 % 10.2 % +290 bps
Income from Continuing Operations Before Income Taxes 2.4 % 2.5 % U.K. 37 % 37 % Service and Parts 59.2 % 58.5 % +70 bps Service and Parts 59.2 % 58.5 % +70 bps Service and Parts 39.5 % 37.6 % +190 bps Service and Parts 39.4 % 37.6 % +180 bps
Other International 5 % 6 % Fleet and Wholesale 1.6 % 2.3 % -70 bps Fleet and Wholesale 1.6 % 2.5 % -90 bps Total Gross Margin 16.4 % 15.9 % +50 bps Total Gross Margin 16.4 % 15.9 % +50 bps
Operating Items as a Percentage of Total Gross Profit: Total 100 % 100 % Total Gross Margin 15.0 % 14.7 % +30 bps Total Gross Margin 15.0 % 14.7 % +30 bps
Selling, General and Administrative Expenses 78.3 % 76.7 % Retail Commercial Truck Revenue Mix Percentages: Retail Commercial Truck Revenue Mix Percentages:
Operating Income 18.6 % 20.3 % Retail Automotive Revenue Mix Percentages: Retail Automotive Revenue Mix Percentages: New Vehicles 62.4 % 58.3 % +410 bps New Vehicles 62.2 % 58.4 % +380 bps
New Vehicles 43.8 % 46.2 % -240 bps New Vehicles 43.6 % 46.2 % -260 bps Used Vehicles 7.3 % 9.1 % -180 bps Used Vehicles 7.4 % 9.1 % -170 bps
Used Vehicles 36.4 % 35.2 % +120 bps Used Vehicles 36.6 % 35.3 % +130 bps Finance and Insurance, Net 0.9 % 1.1 % -20 bps Finance and Insurance, Net 1.5 % 1.1 % +40 bps
Three Months Ended Finance and Insurance, Net 3.1 % 3.0 % +10 bps Finance and Insurance, Net 3.2 % 3.0 % +20 bps Service and Parts 27.5 % 30.9 % -340 bps Service and Parts 27.7 % 30.8 % -310 bps
March 31, Service and Parts 11.0 % 10.3 % +70 bps Service and Parts 11.0 % 10.2 % +80 bps Other 1.9 % 0.6 % +130 bps Other 1.2 % 0.6 % +60 bps
Fleet and Wholesale 5.7 % 5.3 % +40 bps Fleet and Wholesale 5.6 % 5.3 % +30 bps Total 100.0 % 100.0 % Total 100.0 % 100.0 %
(Amounts in Millions) 2019 2018 Total 100.0 % 100.0 % Total 100.0 % 100.0 %
Retail Commercial Truck Gross Profit Mix Percentages: Retail Commercial Truck Gross Profit Mix Percentages:
EBITDA* $ 190.1 $ 199.7 Retail Automotive Gross Profit Mix Percentages: Retail Automotive Gross Profit Mix Percentages: New Vehicles 18.8 % 14.4 % +440 bps New Vehicles 18.4 % 14.4 % +400 bps
Floorplan Credits $ 8.5 $ 8.5 New Vehicles 22.7 % 23.5 % -80 bps New Vehicles 22.4 % 23.6 % -120 bps Used Vehicles 5.0 % 5.8 % -80 bps Used Vehicles 6.0 % 5.8 % +20 bps
Rent Expense $ 57.2 $ 57.9 Used Vehicles 12.2 % 14.1 % -190 bps Used Vehicles 12.5 % 14.1 % -160 bps Finance and Insurance, Net 5.5 % 6.8 % -130 bps Finance and Insurance, Net 8.9 % 6.9 % +200 bps
Capital Expenditures $ 63.1 $ 64.7 Finance and Insurance, Net 21.0 % 20.7 % +30 bps Finance and Insurance, Net 21.1 % 20.7 % +40 bps Service and Parts 66.4 % 73.0 % -660 bps Service and Parts 66.7 % 72.9 % -620 bps
Stock Repurchases $ 54.3 $ 50.0 Service and Parts 43.5 % 40.9 % +260 bps Service and Parts 43.4 % 40.7 % +270 bps Other 4.3 % % +430 bps Other % % --- bps
___________________________ Fleet and Wholesale 0.6 % 0.8 % -20 bps Fleet and Wholesale 0.6 % 0.9 % -30 bps Total 100.0 % 100.0 % Total 100.0 % 100.0 %
* See the following Non-GAAP reconciliation table. Total 100.0 % 100.0 % Total 100.0 % 100.0 %

 

 

J.D. Carlson Anthony R. Pordon PENSKE AUTOMOTIVE GROUP, INC. Consolidated Condensed Statements of Income (Amounts In Millions, Except Per Share Data) (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Consolidated Condensed Balance Sheets (Amounts In Millions) (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Consolidated Operations Selected Data (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Retail Automotive Operations Selected Data – Revenue and Gross Profit Mix (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Retail Automotive Operations Selected Data (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Retail Automotive Operations Same-Store Selected Data (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Retail Commercial Truck Operations Selected Data (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Retail Commercial Truck Operations Same-Store Selected Data (Unaudited) PENSKE AUTOMOTIVE GROUP, INC. Consolidated Non-GAAP Reconciliations (Unaudited)
Actual Excl. F/X New Used F & I Executive Vice President and Executive Vice President Investor Relations
New Vehicles -9.4% -6.9% Actual $3,153 $1,301 $1,262 Chief Financial Officer and Corporate Development Three Months Ended March 31, December 31, Three Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended The following table reconciles reported net income to earnings before interest, taxes, depreciation and amortization ("EBITDA") for the three months ended March 31, 2019 and 2018:
Used Vehicles -0.5% +3.4% Change +$49 -$209 +$42 Penske Automotive Group, Inc. Penske Automotive Group, Inc. March 31, 2019 2018 March 31, March 31, March 31, March 31, March 31, March 31,
Finance & Insurance -0.4% +2.8% 248-648-2810 248-648-2540 2019 2018 Change Assets: 2019 2018 2019 2018 2019 2018 Change 2019 2018 Change 2019 2018 Change 2019 2018 Change Three Months Ended
Service & Parts +3.0% +5.6% Excl. Foreign Exchange $3,253 $1,347 $1,303 jcarlson@penskeautomotive.com tpordon@penskeautomotive.com Revenue $ 5,564.4 $ 5,746.9 (3.2) % Cash and Cash Equivalents $ 43.5 $ 39.4 Geographic Revenue Mix: Retail Automotive Revenue Mix: Retail Automotive Units: Retail Automotive Same-Store Units: Retail Commercial Truck Units: Retail Commercial Truck Same-Store Units: March 31, 2019 vs. 2018
Change +$149 -$163 +$83 Cost of Sales 4,712.9 4,882.5 (3.5) % Accounts Receivable, Net 1,034.1 929.1 North America 54.9 % 53.0 % Premium: New Retail 54,370 59,262 (8.3) % New Retail 53,112 58,062 (8.5) % New Retail 1,887 1,655 14.0 % New Retail 1,859 1,655 12.3 % (Amounts in Millions) 2019 2018 Change % Change
Gross Profit $ 851.5 $ 864.4 (1.5) % Inventories 4,104.1 4,040.1 U.K. 36.7 % 38.2 % BMW / MINI 22 % 22 % Used Retail 72,744 73,228 (0.7) % Used Retail 71,613 71,532 0.1 % Used Retail 416 451 (7.8) % Used Retail 409 451 (9.3) %
SG&A Expenses 666.4 663.1 0.5 % Other Current Assets 101.5 86.6 Other International 8.4 % 8.8 % Audi 12 % 14 % Total 127,114 132,490 (4.1) % Total 124,725 129,594 (3.8) % Total 2,303 2,106 9.4 % Total 2,268 2,106 7.7 % Net Income $ 99.2 $ 107.8 $ (8.6) (8.0) %
Depreciation 26.4 25.6 3.1 % Total Current Assets 5,283.2 5,095.2 Total 100.0 % 100.0 % Mercedes-Benz 10 % 10 % Add: Depreciation 26.4 25.6 0.8 3.1 %
Operating Income $ 158.7 $ 175.7 (9.7) % Property and Equipment, Net 2,276.1 2,250.0 Land Rover / Jaguar 10 % 9 % Retail Automotive Revenue: (Amounts in Millions) Retail Automotive Same-Store Revenue: (Amounts in Millions) Retail Commercial Truck Revenue: (Amounts in Millions) Retail Commercial Truck Same-Store Revenue: (Amounts in Millions) Other Interest Expense 29.9 29.8 0.1 0.3 %
Floor Plan Interest Expense (21.8) (18.9) 15.3 % Operating Lease Right-of-Use Assets 2,340.6 Revenue: (Amounts in Millions) Porsche 5 % 6 % New Vehicles $ 2,231.2 $ 2,446.8 (8.8) % New Vehicles $ 2,171.2 $ 2,397.3 (9.4) % New Vehicles $ 207.4 $ 170.4 21.7 % New Vehicles $ 204.0 $ 170.4 19.7 % Income Taxes 34.7 36.6 (1.9) (5.2) %
Other Interest Expense (29.9) (29.8) 0.3 % Intangibles 2,247.9 2,238.2 Retail Automotive $ 5,091.2 $ 5,296.0 Ferrari / Maserati 3 % 3 % Used Vehicles 1,852.0 1,866.8 (0.8) % Used Vehicles 1,823.4 1,832.1 (0.5) % Used Vehicles 24.1 26.5 (9.1) % Used Vehicles 24.4 26.5 (7.9) % Income from Discontinued Operations, net of tax (0.1) (0.1)
Equity in Earnings of Affiliates 26.8 17.3 54.9 % Other Long-Term Assets 1,351.3 1,321.1 Retail Commercial Trucks 332.3 292.4 Lexus 3 % 2 % Finance and Insurance, Net 160.0 160.8 (0.5) % Finance and Insurance, Net 157.5 158.2 (0.4) % Finance and Insurance, Net 3.0 3.2 (6.3) % Finance and Insurance, Net 4.8 3.2 50.0 % EBITDA $ 190.1 $ 199.7 $ (9.6) (4.8) %
Income from Continuing Operations Before Income Taxes $ 133.8 $ 144.3 (7.3) % Total Assets $ 13,499.1 $ 10,904.5 Commercial Vehicles Australia/Power Systems and Other 140.9 158.5 Acura 1 % 1 % Service and Parts 559.8 543.5 3.0 % Service and Parts 547.5 531.4 3.0 % Service and Parts 91.5 90.4 1.2 % Service and Parts 90.8 89.8 1.1 %
Income Taxes (34.7) (36.6) (5.2) % Total $ 5,564.4 $ 5,746.9 Bentley 1 % 1 % Fleet and Wholesale 288.2 278.1 3.6 % Fleet and Wholesale 280.2 271.6 3.2 % Other 6.3 1.9 231.6 % Other 4.0 1.9 110.5 % nm – not meaningful
Income from Continuing Operations $ 99.1 $ 107.7 (8.0) % Liabilities and Equity: Others 3 % 2 % Total Revenue $ 5,091.2 $ 5,296.0 (3.9) % Total Revenue $ 4,979.8 $ 5,190.6 (4.1) % Total Revenue $ 332.3 $ 292.4 13.6 % Total Revenue $ 328.0 $ 291.8 12.4 %
Income from Discontinued Operations, net of tax 0.1 0.1 nm Floor Plan Notes Payable $ 2,419.2 $ 2,362.2 Gross Profit: (Amounts in Millions) Total Premium 70 % 70 %
Net Income $ 99.2 $ 107.8 (8.0) % Floor Plan Notes Payable – Non-Trade 1,488.7 1,428.6 Retail Automotive $ 761.5 $ 778.3 Volume Non-U.S.: Retail Automotive Gross Profit: (Amounts in Millions) Retail Automotive Same-Store Gross Profit: (Amounts in Millions) Retail Commercial Truck Gross Profit: (Amounts in Millions) Retail Commercial Truck Same-Store Gross Profit: (Amounts in Millions)
Less: Loss Attributable to Non-Controlling Interests (1.0) (0.3) nm Accounts Payable 668.5 598.2 Retail Commercial Trucks 54.4 46.6 Toyota 9 % 9 % New Vehicles $ 172.7 $ 183.2 (5.7) % New Vehicles $ 167.5 $ 180.2 (7.0) % New Vehicles $ 10.2 $ 6.7 52.2 % New Vehicles $ 9.9 $ 6.7 47.8 %
Net Income Attributable to Common Shareholders $ 100.2 $ 108.1 (7.3) % Accrued Expenses and Other Current Liabilities 698.7 566.6 Commercial Vehicles Australia/Power Systems and Other 35.6 39.5 Honda 6 % 6 % Used Vehicles 92.9 109.7 (15.3) % Used Vehicles 93.1 108.0 (13.8) % Used Vehicles 2.7 2.7 % Used Vehicles 3.2 2.7 18.5 %
Current Portion Long-Term Debt 94.5 92.0 Total $ 851.5 $ 864.4 Volkswagen 4 % 4 % Finance and Insurance, Net 160.0 160.8 (0.5) % Finance and Insurance, Net 157.5 158.2 (0.4) % Finance and Insurance, Net 3.0 3.2 (6.3) % Finance and Insurance, Net 4.8 3.2 50.0 %
Amounts Attributable to Common Shareholders: Liabilities Held for Sale 0.5 0.7 Nissan 1 % 1 % Service and Parts 331.4 318.1 4.2 % Service and Parts 323.9 310.8 4.2 % Service and Parts 36.1 34.0 6.2 % Service and Parts 35.8 33.8 5.9 %
Reported Income from Continuing Operations $ 99.1 $ 107.7 (8.0) % Total Current Liabilities 5,370.1 5,048.3 Gross Margin: Others 2 % 2 % Fleet and Wholesale 4.5 6.5 (30.8) % Fleet and Wholesale 4.5 6.7 (32.8) % Other 2.4 nm Other nm
Less: Loss Attributable to Non-Controlling Interests (1.0) (0.3) nm Long-Term Debt 2,118.3 2,124.7 Retail Automotive 15.0 % 14.7 % Total Volume Non-U.S. 22 % 22 % Total Gross Profit $ 761.5 $ 778.3 (2.2) % Total Gross Profit $ 746.5 $ 763.9 (2.3) % Total Gross Profit $ 54.4 $ 46.6 16.7 % Total Gross Profit $ 53.7 $ 46.4 15.7 %
Income from Continuing Operations, net of tax $ 100.1 $ 108.0 (7.3) % Long-Term Operating Lease Liabilities 2,308.4 Retail Commercial Trucks 16.4 % 15.9 % U.S.:
Income from Discontinued Operations, net of tax 0.1 0.1 nm Other Long-Term Liabilities 1,040.6 1,096.8 Commercial Vehicles Australia/Power Systems and Other 25.3 % 24.9 % General Motors / Chrysler / Ford 2 % 2 % Retail Automotive Revenue Per Vehicle Retailed: Retail Automotive Same-Store Revenue Per Vehicle Retailed: Retail Commercial Truck Revenue Per Vehicle Retailed: Retail Commercial Truck Same-Store Revenue Per Vehicle Retailed:
Net Income Attributable to Common Shareholders $ 100.2 $ 108.1 (7.3) % Total Liabilities 10,837.4 8,269.8 Total 15.3 % 15.0 % Stand-Alone Used 6 % 6 % New Vehicles $ 41,037 $ 41,288 (0.6) % New Vehicles $ 40,880 $ 41,288 (1.0) % New Vehicles $ 109,887 $ 102,978 6.7 % New Vehicles $ 109,762 $ 102,978 6.6 %
Income from Continuing Operations Per Share $ 1.19 $ 1.26 (5.6) % Equity 2,661.7 2,634.7 Total 100 % 100 % Used Vehicles 25,459 25,493 (0.1) % Used Vehicles 25,462 25,612 (0.6) % Used Vehicles 58,032 58,708 (1.2) % Used Vehicles 59,682 58,708 1.7 %
Income Per Share $ 1.19 $ 1.26 (5.6) % Total Liabilities and Equity $ 13,499.1 $ 10,904.5
Weighted Average Shares Outstanding 84.4 86.0 (1.9) %