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    Press Release

    Penske Automotive Reports Second Quarter 2020 Results

    Company Release - 07/29/2020
    Income From Continuing Operations of $45.0 million, and Related Earnings Per Share of $0.56
    Liquidity of $1.2 Billion as of June 30
    Will Repay $300 Million in Senior Subordinated Notes in August

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

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

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

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

    Second Quarter 2020 Retail Automotive Operational Information

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

    Liquidity

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

    Used Vehicle SuperCenter Operations

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

    Retail Commercial Truck Operations

    Penske Automotive Group operates twenty-five medium and heavy-duty truck dealership locations in the U.S. and Canada offering primarily Freightliner and Western Star brands. As an essential operation, during the second quarter our commercial truck business generally remained operational in most locations, although we reduced hours of operations and limited in-person sales where applicable. For the three months ended June 30, 2020, total units retailed were 2,836 and total revenue was $399 million, representing declines of approximately 8% and 7%, respectively. Same-store new units declined 52.2% and were in line with the 51.1% decline in North American Class 8 retail sales during the period. Same-store revenue declined 40.2%. For the six months ended June 30, 2020, total units retailed increased 17.7%, and revenue increased 17.3% to $890.6 million. Same-store new units retailed declined 31.4% which compares to North American Class 8 retail sales which declined 39.4% during the same period. Same-store revenue declined 23.4%.

    Penske Transportation Solutions

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

    Dividend and Share Repurchases

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

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

    Conference Call

    Penske Automotive Group will host a conference call discussing financial results relating to the second quarter of 2020 on Wednesday, July 29, 2020, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (866) 394-1455 – [International, please dial (516) 575-8644] using access code 3229936. The call will also be simultaneously broadcast over the Internet through the Investor's section of the Penske Automotive Group website. Additionally, an investor presentation relating to the second quarter 2020 financial results has been posted to the company's website. To access the presentation or to listen to the company's webcast, please refer to www.penskeautomotive.com.

    About Penske Automotive

    Penske Automotive Group, Inc., (NYSE:PAG) headquartered in Bloomfield Hills, Michigan, is an international transportation services company that operates automotive and commercial truck dealerships principally in the United States, the United Kingdom, Canada, and Western Europe, and distributes commercial vehicles, diesel engines, gas engines, power systems and related parts and services principally in Australia and New Zealand. PAG is a member of the Fortune 500 and Russell 1000 indexes, and is ranked among the World's Most Admired Companies by Fortune Magazine. For additional information, visit the company's website at www.penskeautomotive.com.

    Non-GAAP Financial Measures

    This release contains certain non-GAAP financial measures as defined under SEC rules, such as earnings before interest, taxes, depreciation, amortization ("EBITDA"), and "Free Cash Flow." The company has reconciled these measures to the most directly comparable GAAP measures in the release. The company believes that these widely accepted measures of operating profitability improve the transparency of the company's disclosures and provide a meaningful presentation of the company's results from its core business operations excluding the impact of items not related to the company's ongoing core business operations, and improve the period-to-period comparability of the company's results from its core business operations. These non-GAAP financial measures are not substitutes for GAAP financial results and should only be considered in conjunction with the company's financial information that is presented in accordance with GAAP.

    Caution Concerning Forward Looking Statements

    Statements in this press release may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.'s liquidity and assessment of business conditions in light of the COVID-19 pandemic. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others: the duration, severity and resolution of the COVID-19 pandemic, the number of employees returning from furlough, economic conditions generally, conditions in the credit markets, changes in interest rates and foreign currency exchange rates, changes in tariff rates, adverse impacts related to the outcome of the United Kingdom's departure from the European Union, adverse conditions affecting a particular manufacturer, including the adverse impact to the vehicle and parts supply chain due to limited vehicle availability due to the COVID-19 pandemic, WLTP and RDE, natural disasters, recall or other disruptions that interrupt the supply of vehicles or parts to us, changes in consumer credit availability, the outcome of legal and administrative matters, and other factors over which management has limited control. These forward-looking statements should be evaluated together with additional information about Penske Automotive Group's business, markets, conditions, and other uncertainties, which could affect Penske Automotive Group's future performance. These risks and uncertainties are addressed in Penske Automotive Group's Form 10-K for the year ended December 31, 2019 and its other filings with the Securities and Exchange Commission ("SEC"). This press release speaks only as of its date, and Penske Automotive Group disclaims any duty to update the information herein.

    Find a vehicle : http://www.penskecars.com
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    : http://www.penskesocial.com
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    Inquiries should contact:



    J.D. Carlson

    Anthony R. Pordon

    Executive Vice President and

    Executive Vice President Investor Relations

    Chief Financial Officer

    and Corporate Development

    Penske Automotive Group, Inc.

    Penske Automotive Group, Inc.

    248-648-2810

    248-648-2540

    jcarlson@penskeautomotive.com

    tpordon@penskeautomotive.com

     

    PENSKE AUTOMOTIVE GROUP, INC.

    Consolidated Condensed Statements of Income

     (Amounts In Millions, Except Per Share Data)

    (Unaudited)




    Three Months Ended



    Six Months Ended



    June 30,



    June 30,



    2020


    2019


    Change



    2020


    2019


    Change

    Revenue


    $

    3,651.1


    $

    5,755.8


    (36.6)

    %



    $

    8,660.2


    $

    11,320.2


    (23.5)

    %

    Cost of Sales



    3,098.2



    4,888.0


    (36.6)

    %




    7,330.6



    9,600.9


    (23.6)

    %

    Gross Profit


    $

    552.9


    $

    867.8


    (36.3)

    %



    $

    1,329.6


    $

    1,719.3


    (22.7)

    %

    SG&A Expenses



    453.6



    668.9


    (32.2)

    %




    1,095.4



    1,335.3


    (18.0)

    %

    Depreciation



    27.9



    27.1


    3.0

    %




    56.4



    53.5


    5.4

    %

    Operating Income


    $

    71.4


    $

    171.8


    (58.4)

    %



    $

    177.8


    $

    330.5


    (46.2)

    %

    Floor Plan Interest Expense



    (11.7)



    (21.0)


    (44.3)

    %




    (29.4)



    (42.8)


    (31.3)

    %

    Other Interest Expense



    (28.4)



    (30.4)


    (6.6)

    %




    (60.1)



    (60.3)


    (0.3)

    %

    Equity in Earnings of Affiliates



    29.9



    39.5


    (24.3)

    %




    44.4



    66.3


    (33.0)

    %

    Income from Continuing Operations Before Income Taxes


    $

    61.2


    $

    159.9


    (61.7)

    %



    $

    132.7


    $

    293.7


    (54.8)

    %

    Income Taxes



    (16.5)



    (41.5)


    (60.2)

    %




    (36.6)



    (76.2)


    (52.0)

    %

    Income from Continuing Operations


    $

    44.7


    $

    118.4


    (62.2)

    %



    $

    96.1


    $

    217.5


    (55.8)

    %

    Income from Discontinued Operations, net of tax



    0.1



    0.1


    nm





    0.2



    0.2


    nm


    Net Income


    $

    44.8


    $

    118.5


    (62.2)

    %



    $

    96.3


    $

    217.7


    (55.8)

    %

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



    (0.3)



    0.7


    nm





    (0.5)



    (0.3)


    nm


    Net Income Attributable to Common Shareholders


    $

    45.1


    $

    117.8


    (61.7)

    %



    $

    96.8


    $

    218.0


    (55.6)

    %





















    Amounts Attributable to Common Shareholders:




















    Reported Income from Continuing Operations


    $

    44.7


    $

    118.4


    (62.2)

    %



    $

    96.1


    $

    217.5


    (55.8)

    %

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



    (0.3)



    0.7


    nm





    (0.5)



    (0.3)


    nm


    Income from Continuing Operations, net of tax


    $

    45.0


    $

    117.7


    (61.8)

    %



    $

    96.6


    $

    217.8


    (55.6)

    %

    Income from Discontinued Operations, net of tax



    0.1



    0.1


    nm





    0.2



    0.2


    nm


    Net Income Attributable to Common Shareholders


    $

    45.1


    $

    117.8


    (61.7)

    %



    $

    96.8


    $

    218.0


    (55.6)

    %

    Income from Continuing Operations Per Share


    $

    0.56


    $

    1.42


    (60.6)

    %



    $

    1.20


    $

    2.60


    (53.8)

    %

    Income Per Share


    $

    0.56


    $

    1.42


    (60.6)

    %



    $

    1.20


    $

    2.61


    (54.0)

    %

    Weighted Average Shares Outstanding



    80.5



    82.9


    (2.9)

    %




    80.8



    83.7


    (3.5)

    %





















    nm – not meaningful




















     

    PENSKE AUTOMOTIVE GROUP, INC.

    Consolidated Condensed Balance Sheets

    (Amounts In Millions)

    (Unaudited)




    June 30,


    December 31,



    2020


    2019

    Assets:







    Cash and Cash Equivalents


    $

    159.3


    $

    28.1

    Accounts Receivable, Net



    756.6



    960.3

    Inventories



    3,425.9



    4,260.7

    Other Current Assets



    76.6



    85.0

    Total Current Assets



    4,418.4



    5,334.1

    Property and Equipment, Net



    2,293.7



    2,366.4

    Operating Lease Right-of-Use Assets



    2,311.1



    2,360.5

    Intangibles



    2,423.7



    2,463.2

    Other Long-Term Assets



    1,429.2



    1,418.5

    Total Assets


    $

    12,876.1


    $

    13,942.7








    Liabilities and Equity:







    Floor Plan Notes Payable


    $

    1,957.4


    $

    2,412.5

    Floor Plan Notes Payable – Non-Trade



    1,284.1



    1,594.0

    Accounts Payable



    679.4



    638.8

    Accrued Expenses and Other Current Liabilities



    684.8



    701.9

    Current Portion Long-Term Debt



    83.3



    103.3

    Liabilities Held for Sale



    0.5



    0.5

    Total Current Liabilities



    4,689.5



    5,451.0

    Long-Term Debt



    2,054.1



    2,257.0

    Long-Term Operating Lease Liabilities



    2,252.6



    2,301.2

    Other Long-Term Liabilities



    1,102.3



    1,121.9

    Total Liabilities



    10,098.5



    11,131.1

    Equity



    2,777.6



    2,811.6

    Total Liabilities and Equity


    $

    12,876.1


    $

    13,942.7








    Supplemental Balance Sheet Information







    New vehicle days' supply



    76



    71

    Used vehicle days' supply



    35



    52

     

    PENSKE AUTOMOTIVE GROUP, INC.

    Consolidated Statements of Cash Flow

    Amounts in Millions

    (Unaudited)





    Six Months Ended




    June 30,




    2020


    2019


    Operating Activities:








    Net income


    $

    96.3


    $

    217.7


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








    Depreciation



    56.4



    53.5


    Earnings of equity method investments



    (37.6)



    (53.4)


    Income from discontinued operations, net of tax



    (0.2)



    (0.2)


    Deferred income taxes



    20.8



    29.7


    Changes in operating assets and liabilities:








    Accounts receivable



    203.9



    (15.2)


    Inventories



    827.3



    35.5


    Floor plan notes payable



    (452.6)



    15.0


    Accounts payable and accrued expenses



    35.5



    55.3


    Other



    34.6



    (33.3)


    Net cash provided by continuing operating activities



    784.4



    304.6


    Investing Activities:








    Purchase of equipment and improvements



    (76.8)



    (134.5)


    Proceeds from sale of dealerships



    10.3



    7.2


    Proceeds from sale-leaseback transactions





    7.3


    Proceeds from sale of equipment and improvements



    19.8



    5.2


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





    (1.1)


    Other



    (1.1)



    (6.1)


    Net cash used in continuing investing activities



    (47.8)



    (122.0)


    Financing Activities:








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



    580.0



    821.0


    Repayments under U.S. credit agreement revolving credit line



    (625.0)



    (851.0)


    Net (repayments) borrowings of other long-term debt



    (160.8)



    39.8


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



    (309.9)



    6.8


    Cash paid for seller financing



    (21.1)




    Repurchases of common stock



    (29.4)



    (130.6)


    Dividends



    (34.2)



    (64.5)


    Other



    (4.8)



    0.4


    Net cash used in continuing financing activities



    (605.2)



    (178.1)


    Discontinued operations:








    Net cash provided by  discontinued operating activities



    0.1




    Net cash provided by discontinued investing activities






    Net cash provided by discontinued financing activities






    Net cash provided by discontinued operations



    0.1




    Effect of exchange rate changes on cash and cash equivalents



    (0.3)



    (0.1)


    Net change in cash and cash equivalents



    131.2



    4.4


    Cash and cash equivalents, beginning of period



    28.1



    39.4


    Cash and cash equivalents, end of period


    $

    159.3


    $

    43.8


    Supplemental disclosures of cash flow information:








    Cash paid for:








    Interest


    $

    81.9


    $

    102.6


    Income taxes



    5.1



    47.2


     

    PENSKE AUTOMOTIVE GROUP, INC.
    Consolidated Operations
    Selected Data
    (Unaudited)


















    Three Months Ended


    Six Months Ended




    June 30,


    June 30,





    2020



    2019


    2020


    2019


    Geographic Revenue Mix:














    North America



    67.2

    %


    57.9

    %


    62.3

    %


    56.4

    %

    U.K.



    22.9

    %


    33.5

    %


    28.9

    %


    35.1

    %

    Other International



    9.9

    %


    8.6

    %


    8.8

    %


    8.5

    %

    Total



    100.0

    %


    100.0

    %


    100.0

    %


    100.0

    %















    Revenue: (Amounts in Millions)














    Retail Automotive


    $

    3,153.5


    $

    5,196.3


    $

    7,570.1


    $

    10,287.5


    Retail Commercial Trucks



    399.2



    426.8



    890.6



    759.1


    Commercial Vehicles Australia/Power Systems and Other



    98.4



    132.7



    199.5



    273.6


    Total


    $

    3,651.1


    $

    5,755.8


    $

    8,660.2


    $

    11,320.2
















    Gross Profit: (Amounts in Millions)














    Retail Automotive


    $

    466.3


    $

    774.9


    $

    1,144.4


    $

    1,536.4


    Retail Commercial Trucks



    60.2



    58.5



    129.0



    112.9


    Commercial Vehicles Australia/Power Systems and Other



    26.4



    34.4



    56.2



    70.0


    Total


    $

    552.9


    $

    867.8


    $

    1,329.6


    $

    1,719.3
















    Gross Margin:














    Retail Automotive



    14.8

    %


    14.9

    %


    15.1

    %


    14.9

    %

    Retail Commercial Trucks



    15.1

    %


    13.7

    %


    14.5

    %


    14.9

    %

    Commercial Vehicles Australia/Power Systems and Other



    26.8

    %


    25.9

    %


    28.2

    %


    25.6

    %

    Total



    15.1

    %


    15.1

    %


    15.4

    %


    15.2

    %
























    Three Months Ended


    Six Months Ended





    June 30,


    June 30,





    2020


    2019


    2020


    2019



    Operating Items as a Percentage of Revenue:















    Gross Profit



    15.1

    %


    15.1

    %


    15.4

    %


    15.2

    %


    Selling, General and Administrative Expenses



    12.4

    %


    11.6

    %


    12.6

    %


    11.8

    %


    Operating Income



    2.0

    %


    3.0

    %


    2.1

    %


    2.9

    %


    Income from Continuing Operations Before Income Taxes



    1.7

    %


    2.8

    %


    1.5

    %


    2.6

    %

















    Operating Items as a Percentage of Total Gross Profit:















    Selling, General and Administrative Expenses



    82.0

    %


    77.1

    %


    82.4

    %


    77.7

    %


    Operating Income



    12.9

    %


    19.8

    %


    13.4

    %


    19.2

    %

























    Three Months Ended



    Six Months Ended




    June 30,



    June 30,


    (Amounts in Millions)


    2020


    2019


    2020


    2019
















    EBITDA (1)


    $

    117.5


    $

    217.4


    $

    249.2


    $

    407.5


    Floorplan Credits


    $

    8.4


    $

    9.1


    $

    17.0


    $

    17.6


    Rent Expense


    $

    56.5


    $

    57.9


    $

    114.4


    $

    115.1


    Stock Repurchases (2)


    $

    4.8


    $

    76.2


    $

    34.2


    $

    130.6


    ______________________________

    (1)

    See the following Non-GAAP reconciliation table.

    (2)

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

     

    PENSKE AUTOMOTIVE GROUP, INC.

    Retail Automotive Operations

    Selected Data – Revenue and Gross Profit Mix

    (Unaudited)




    Three Months Ended


    Six Months Ended




    June 30,


    June 30,




    2020


    2019


    2020


    2019


    Retail Automotive Revenue Mix:










    Premium:










    BMW / MINI


    22

    %

    23

    %

    22

    %

    23

    %

    Audi


    13

    %

    12

    %

    13

    %

    12

    %

    Mercedes-Benz


    10

    %

    10

    %

    10

    %

    10

    %

    Land Rover / Jaguar


    8

    %

    9

    %

    9

    %

    9

    %

    Porsche


    7

    %

    6

    %

    7

    %

    6

    %

    Ferrari / Maserati


    3

    %

    3

    %

    3

    %

    3

    %

    Lexus


    3

    %

    3

    %

    3

    %

    3

    %

    Acura


    1

    %

    1

    %

    1

    %

    1

    %

    Bentley


    1

    %

    1

    %

    1

    %

    1

    %

    Others


    2

    %

    2

    %

    2

    %

    2

    %

    Total Premium


    70

    %

    70

    %

    71

    %

    70

    %

    Volume Non-U.S.:










    Toyota


    12

    %

    10

    %

    11

    %

    10

    %

    Honda


    7

    %

    7

    %

    6

    %

    6

    %

    Volkswagen


    2

    %

    4

    %

    2

    %

    4

    %

    Nissan


    1

    %

    1

    %

    1

    %

    1

    %

    Others


    2

    %

    1

    %

    2

    %

    2

    %

    Total Volume Non-U.S.


    24

    %

    23

    %

    22

    %

    23

    %

    U.S.:










    General Motors / Chrysler / Ford


    2

    %

    1

    %

    1

    %

    1

    %

    Stand-Alone Used


    4

    %

    6

    %

    6

    %

    6

    %

    Total


    100

    %

    100

    %

    100

    %

    100

    %











    Retail Automotive Geographic Revenue Mix:










    U.S.


    65

    %

    56

    %

    60

    %

    55

    %

    U.K.


    27

    %

    37

    %

    33

    %

    38

    %

    Other International


    8

    %

    7

    %

    7

    %

    7

    %

    Total


    100

    %

    100

    %

    100

    %

    100

    %











    Retail Automotive Geographic Gross Profit Mix:










    U.S.


    71

    %

    61

    %

    65

    %

    59

    %

    U.K.


    23

    %

    33

    %

    29

    %

    35

    %

    Other International


    6

    %

    6

    %

    6

    %

    6

    %

    Total


    100

    %

    100

    %

    100

    %

    100

    %

     

    PENSKE AUTOMOTIVE GROUP, INC.

    Retail Automotive Operations

    (Unaudited)




    Three Months Ended



    Six Months Ended



    June 30,



    June 30,



    2020


    2019


    Change



    2020


    2019


    Change

    Retail Automotive Units:




















    New Retail



    30,687



    55,146


    (44.4)

    %




    73,874



    109,516


    (32.5)

    %

    Used Retail



    42,606



    72,066


    (40.9)

    %




    105,656



    144,810


    (27.0)

    %

    Total



    73,293



    127,212


    (42.4)

    %




    179,530



    254,326


    (29.4)

    %





















    Retail Automotive Revenue: (Amounts in Millions)




















    New Vehicles


    $

    1,384.7


    $

    2,310.4


    (40.1)

    %



    $

    3,249.2


    $

    4,541.6


    (28.5)

    %

    Used Vehicles



    1,166.0



    1,852.7


    (37.1)

    %




    2,785.6



    3,704.7


    (24.8)

    %

    Finance and Insurance, Net



    97.1



    165.5


    (41.3)

    %




    241.5



    325.5


    (25.8)

    %

    Service and Parts



    345.2



    550.7


    (37.3)

    %




    858.5



    1,110.5


    (22.7)

    %

    Fleet and Wholesale



    160.5



    317.0


    (49.4)

    %




    435.3



    605.2


    (28.1)

    %

    Total Revenue


    $

    3,153.5


    $

    5,196.3


    (39.3)

    %



    $

    7,570.1


    $

    10,287.5


    (26.4)

    %





















    Retail Automotive Gross Profit: (Amounts in Millions)




















    New Vehicles


    $

    106.2


    $

    174.8


    (39.2)

    %



    $

    244.8


    $

    347.5


    (29.6)

    %

    Used Vehicles



    55.8



    101.6


    (45.1)

    %




    141.7



    194.5


    (27.1)

    %

    Finance and Insurance, Net



    97.1



    165.5


    (41.3)

    %




    241.5



    325.5


    (25.8)

    %

    Service and Parts



    201.2



    328.3


    (38.7)

    %




    504.9



    659.7


    (23.5)

    %

    Fleet and Wholesale



    6.0



    4.7


    27.7

    %




    11.5



    9.2


    25.0

    %

    Total Gross Profit


    $

    466.3


    $

    774.9


    (39.8)

    %



    $

    1,144.4


    $

    1,536.4


    (25.5)

    %





















    Retail Automotive Revenue Per Vehicle Retailed:




















    New Vehicles


    $

    45,124


    $

    41,896


    7.7

    %



    $

    43,983


    $

    41,470


    6.1

    %

    Used Vehicles



    27,368



    25,708


    6.5

    %




    26,365



    25,583


    3.1

    %





















    Retail Automotive Gross Profit Per Vehicle Retailed:




















    New Vehicles


    $

    3,462


    $

    3,170


    9.2

    %



    $

    3,315


    $

    3,173


    4.5

    %

    Used Vehicles



    1,310



    1,410


    (7.1)

    %




    1,341



    1,343


    (0.1)

    %

    Finance and Insurance



    1,324



    1,301


    1.8

    %




    1,345



    1,280


    5.1

    %





















    Retail Automotive Gross Margin:




















    New Vehicles



    7.7

    %


    7.6

    %

    +10

    bps




    7.5

    %


    7.7

    %

    -20

    bps

    Used Vehicles



    4.8

    %


    5.5

    %

    -70

    bps




    5.1

    %


    5.3

    %

    -20

    bps

    Service and Parts



    58.3

    %


    59.6

    %

    -130

    bps




    58.8

    %


    59.4

    %

    -60

    bps

    Fleet and Wholesale



    3.7

    %


    1.5

    %

    +220

    bps




    2.6

    %


    1.5

    %

    +110

    bps

    Total Gross Margin



    14.8

    %


    14.9

    %

    -10

    bps




    15.1

    %


    14.9

    %

    +20

    bps





















    Retail Automotive Revenue Mix Percentages:




















    New Vehicles



    43.9

    %


    44.5

    %

    -60

    bps




    42.9

    %


    44.1

    %

    -120

    bps

    Used Vehicles



    37.0

    %


    35.7

    %

    +130

    bps




    36.8

    %


    36.0

    %

    +80

    bps

    Finance and Insurance, Net



    3.1

    %


    3.2

    %

    -10

    bps




    3.2

    %


    3.2

    %

    ---

    bps

    Service and Parts



    10.9

    %


    10.6

    %

    +30

    bps




    11.3

    %


    10.8

    %

    +50

    bps

    Fleet and Wholesale



    5.1

    %


    6.0

    %

    -90

    bps




    5.8

    %


    5.9

    %

    -10

    bps

    Total



    100.0

    %


    100.0

    %






    100.0

    %


    100.0

    %























    Retail Automotive Gross Profit Mix Percentages:




















    New Vehicles



    22.8

    %


    22.6

    %

    +20

    bps




    21.4

    %


    22.6

    %

    -120

    bps

    Used Vehicles



    12.0

    %


    13.1

    %

    -110

    bps




    12.4

    %


    12.7

    %

    -30

    bps

    Finance and Insurance, Net



    20.8

    %


    21.4

    %

    -60

    bps




    21.1

    %


    21.2

    %

    -10

    bps

    Service and Parts



    43.1

    %


    42.4

    %

    +70

    bps




    44.1

    %


    42.9

    %

    +120

    bps

    Fleet and Wholesale



    1.3

    %


    0.5

    %

    +80

    bps




    1.0

    %


    0.6

    %

    +40

    bps

    Total



    100.0

    %


    100.0

    %






    100.0

    %


    100.0

    %



     


    PENSKE AUTOMOTIVE GROUP, INC.

    Retail Automotive Operations Same-Store

     (Unaudited)




    Three Months Ended



    Six Months Ended



    June 30,



    June 30,



    2020


    2019


    Change



    2020


    2019


    Change

    Retail Automotive Same-Store Units:




















    New Retail



    30,687



    53,614


    (42.8)

    %




    73,838



    105,941


    (30.3)

    %

    Used Retail



    42,229



    70,217


    (39.9)

    %




    103,948



    140,581


    (26.1)

    %

    Total



    72,916



    123,831


    (41.1)

    %




    177,786



    246,522


    (27.9)

    %





















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




















    New Vehicles


    $

    1,384.7


    $

    2,262.5


    (38.8)

    %



    $

    3,248.2


    $

    4,436.9


    (26.8)

    %

    Used Vehicles



    1,159.6



    1,812.0


    (36.0)

    %




    2,757.2



    3,612.8


    (23.7)

    %

    Finance and Insurance, Net



    96.6



    163.0


    (40.7)

    %




    239.6



    319.6


    (25.0)

    %

    Service and Parts



    345.0



    540.2


    (36.1)

    %




    857.6



    1,086.5


    (21.1)

    %

    Fleet and Wholesale



    159.9



    309.8


    (48.4)

    %




    427.0



    588.9


    (27.5)

    %

    Total Revenue


    $

    3,145.8


    $

    5,087.5


    (38.2)

    %



    $

    7,529.6


    $

    10,044.7


    (25.0)

    %





















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




















    New Vehicles


    $

    106.2


    $

    170.3


    (37.6)

    %



    $

    244.8


    $

    338.2


    (27.6)

    %

    Used Vehicles



    55.4



    100.1


    (44.7)

    %




    140.3



    193.5


    (27.5)

    %

    Finance and Insurance, Net



    96.6



    163.0


    (40.7)

    %




    239.6



    319.6


    (25.0)

    %

    Service and Parts



    201.0



    321.9


    (37.6)

    %




    504.1



    645.4


    (21.9)

    %

    Fleet and Wholesale



    6.0



    4.8


    25.0

    %




    11.2



    9.4


    19.1

    %

    Total Gross Profit


    $

    465.2


    $

    760.1


    (38.8)

    %



    $

    1,140.0


    $

    1,506.1


    (24.3)

    %





















    Retail Automotive Same-Store Revenue Per Vehicle Retailed:




















    New Vehicles


    $

    45,124


    $

    42,200


    6.9

    %



    $

    43,991


    $

    41,881


    5.0

    %

    Used Vehicles



    27,460



    25,806


    6.4

    %




    26,525



    25,699


    3.2

    %





















    Retail Automotive Same-Store Gross Profit Per Vehicle Retailed:




















    New Vehicles


    $

    3,462


    $

    3,176


    9.0

    %



    $

    3,315


    $

    3,193


    3.8

    %

    Used Vehicles



    1,313



    1,426


    (7.9)

    %




    1,350



    1,376


    (1.9)

    %

    Finance and Insurance



    1,325



    1,316


    0.7

    %




    1,347



    1,296


    3.9

    %





















    Retail Automotive Same-Store Gross Margin:




















    New Vehicles



    7.7

    %


    7.5

    %

    +20

    bps




    7.5

    %


    7.6

    %

    -10

    bps

    Used Vehicles



    4.8

    %


    5.5

    %

    -70

    bps




    5.1

    %


    5.4

    %

    -30

    bps

    Service and Parts



    58.3

    %


    59.6

    %

    -130

    bps




    58.8

    %


    59.4

    %

    -60

    bps

    Fleet and Wholesale



    3.8

    %


    1.5

    %

    +230

    bps




    2.6

    %


    1.6

    %

    +100

    bps

    Total Gross Margin



    14.8

    %


    14.9

    %

    -10

    bps




    15.1

    %


    15.0

    %

    +10

    bps





















    Retail Automotive Revenue Mix Percentages:




















    New Vehicles



    44.0

    %


    44.5

    %

    -50

    bps




    43.1

    %


    44.2

    %

    -110

    bps

    Used Vehicles



    36.9

    %


    35.6

    %

    +130

    bps




    36.6

    %


    36.0

    %

    +60

    bps

    Finance and Insurance, Net



    3.1

    %


    3.2

    %

    -10

    bps




    3.2

    %


    3.2

    %

    ---

    bps

    Service and Parts



    11.0

    %


    10.6

    %

    +40

    bps




    11.4

    %


    10.8

    %

    +60

    bps

    Fleet and Wholesale



    5.0

    %


    6.1

    %

    -110

    bps




    5.7

    %


    5.8

    %

    -10

    bps

    Total



    100.0

    %


    100.0

    %






    100.0

    %


    100.0

    %























    Retail Automotive Gross Profit Mix Percentages:




















    New Vehicles



    22.8

    %


    22.4

    %

    +40

    bps




    21.5

    %


    22.5

    %

    -100

    bps

    Used Vehicles



    11.9

    %


    13.2

    %

    -130

    bps




    12.3

    %


    12.8

    %

    -50

    bps

    Finance and Insurance, Net



    20.8

    %


    21.4

    %

    -60

    bps




    21.0

    %


    21.2

    %

    -20

    bps

    Service and Parts



    43.2

    %


    42.3

    %

    +90

    bps




    44.2

    %


    42.9

    %

    +130

    bps

    Fleet and Wholesale



    1.3

    %


    0.7

    %

    +60

    bps




    1.0

    %


    0.6

    %

    +40

    bps

    Total



    100.0

    %


    100.0

    %






    100.0

    %


    100.0

    %



     

    PENSKE AUTOMOTIVE GROUP, INC.

    Retail Commercial Truck Operations

    (Unaudited)




    Three Months Ended



    Six Months Ended



    June 30,



    June 30,



    2020


    2019


    Change



    2020


    2019


    Change

    Retail Commercial Truck Units:




















    New Retail



    2,063



    2,647


    (22.1)

    %




    4,874



    4,534


    7.5

    %

    Used Retail



    773



    441


    75.3

    %




    1,471



    857


    71.6

    %

    Total



    2,836



    3,088


    (8.2)

    %




    6,345



    5,391


    17.7

    %





















    Retail Commercial Truck Revenue: (Amounts in Millions)




















    New Vehicles


    $

    235.5


    $

    296.0


    (20.4)

    %



    $

    553.8


    $

    503.4


    10.0

    %

    Used Vehicles



    36.9



    27.6


    33.7

    %




    71.5



    51.7


    38.3

    %

    Finance and Insurance, Net



    3.2



    2.9


    10.3

    %




    6.4



    5.9


    8.5

    %

    Service and Parts



    111.6



    94.6


    18.0

    %




    236.0



    186.1


    26.8

    %

    Wholesale and Other



    12.0



    5.7


    110.5

    %




    22.9



    12.0


    90.8

    %

    Total Revenue


    $

    399.2


    $

    426.8


    (6.5)

    %



    $

    890.6


    $

    759.1


    17.3

    %





















    Retail Commercial Truck Gross Profit: (Amounts in Millions)




















    New Vehicles


    $

    9.6


    $

    11.8


    (18.6)

    %



    $

    22.1


    $

    22.0


    0.5

    %

    Used Vehicles



    (2.9)



    2.9


    (200.0)

    %




    (5.3)



    5.6


    (194.6)

    %

    Finance and Insurance, Net



    3.2



    2.9


    10.3

    %




    6.4



    5.9


    8.5

    %

    Service and Parts



    49.2



    37.3


    31.9

    %




    102.5



    73.4


    39.6

    %

    Wholesale and Other



    1.1



    3.6


    (69.4)





    3.3



    6.0


    (45.0)


    Total Gross Profit


    $

    60.2


    $

    58.5


    2.9

    %



    $

    129.0


    $

    112.9


    14.3

    %





















    Retail Commercial Truck Revenue Per Vehicle Retailed:




















    New Vehicles


    $

    114,176


    $

    111,818


    2.1

    %



    $

    113,621


    $

    111,014


    2.3

    %

    Used Vehicles



    47,721



    62,693


    (23.9)

    %




    48,622



    60,430


    (19.5)

    %





















    Retail Commercial Truck Gross Profit Per Vehicle Retailed:




















    New Vehicles


    $

    4,640


    $

    4,461


    4.0

    %



    $

    4,534


    $

    4,848


    (6.5)

    %

    Used Vehicles



    (3,731)



    6,575


    (156.7)

    %




    (3,626)



    6,566


    (155.2)

    %

    Finance and Insurance



    1,134



    926


    22.5

    %




    1,008



    1,090


    (7.5)

    %





















    Retail Commercial Truck Gross Margin:




















    New Vehicles



    4.1

    %


    4.0

    %

    +10

    bps




    4.0

    %


    4.4

    %

    -40

    bps

    Used Vehicles



    (7.9)

    %


    10.5

    %

    -1,840

    bps




    (7.4)

    %


    10.8

    %

    -1,820

    bps

    Service and Parts



    44.1

    %


    39.4

    %

    +470

    bps




    43.4

    %


    39.4

    %

    +400

    bps

    Total Gross Margin



    15.1

    %


    13.7

    %

    +140

    bps




    14.5

    %


    14.9

    %

    -40

    bps





















    Retail Commercial Truck Revenue Mix Percentages:




















    New Vehicles



    59.0

    %


    69.4

    %

    -1,040

    bps




    62.2

    %


    66.3

    %

    -410

    bps

    Used Vehicles



    9.2

    %


    6.5

    %

    +270

    bps




    8.0

    %


    6.8

    %

    +120

    bps

    Finance and Insurance, Net



    0.8

    %


    0.7

    %

    +10

    bps




    0.7

    %


    0.8

    %

    -10

    bps

    Service and Parts



    28.0

    %


    22.2

    %

    +580

    bps




    26.5

    %


    24.5

    %

    +200

    bps

    Wholesale and Other



    3.0

    %


    1.2

    %

    +180

    bps




    2.6

    %


    1.6

    %

    +100

    bps

    Total



    100.0

    %


    100.0

    %






    100.0

    %


    100.0

    %























    Retail Commercial Truck Gross Profit Mix Percentages:




















    New Vehicles



    15.9

    %


    20.2

    %

    -430

    bps




    17.1

    %


    19.5

    %

    -240

    bps

    Used Vehicles



    (4.8)

    %


    5.0

    %

    -980

    bps




    (4.1)

    %


    5.0

    %

    -910

    bps

    Finance and Insurance, Net



    5.3

    %


    5.0

    %

    +30

    bps




    5.0

    %


    5.2

    %

    -20

    bps

    Service and Parts



    81.7

    %


    63.8

    %

    +1,790

    bps




    79.5

    %


    65.0

    %

    +1,450

    bps

    Wholesale and Other



    1.9

    %


    6.0

    %

    -410

    bps




    2.5

    %


    5.3

    %

    -280

    bps

    Total



    100.0

    %


    100.0

    %






    100.0

    %


    100.0

    %



     

    PENSKE AUTOMOTIVE GROUP, INC.

    Retail Commercial Truck Operations Same-Store

    (Unaudited)




    Three Months Ended



    Six Months Ended



    June 30,



    June 30,



    2020


    2019


    Change



    2020


    2019


    Change

    Retail Commercial Truck Same-Store Units:




















    New Retail



    1,265



    2,647


    (52.2)

    %




    3,110



    4,534


    (31.4)

    %

    Used Retail



    503



    441


    14.1

    %




    1,015



    857


    18.4

    %

    Total



    1,768



    3,088


    (42.7)

    %




    4,125



    5,391


    (23.5)

    %





















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




















    New Vehicles


    $

    149.1


    $

    296.0


    (49.6)

    %



    $

    355.1


    $

    503.4


    (29.5)

    %

    Used Vehicles



    24.1



    27.6


    (12.7)

    %




    49.2



    51.7


    (4.8)

    %

    Finance and Insurance, Net



    2.5



    2.9


    (13.8)

    %




    4.8



    5.9


    (18.6)

    %

    Service and Parts



    76.0



    94.6


    (19.7)

    %




    162.1



    185.8


    (12.8)

    %

    Wholesale and Other



    3.5



    5.7


    (38.6)

    %




    10.1



    11.9


    (15.1)

    %

    Total Revenue


    $

    255.2


    $

    426.8


    (40.2)

    %



    $

    581.3


    $

    758.7


    (23.4)

    %





















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




















    New Vehicles


    $

    5.9


    $

    11.8


    (50.0)

    %



    $

    13.5


    $

    22.0


    (38.6)

    %

    Used Vehicles



    (2.1)



    2.9


    (172.4)

    %




    (3.0)



    5.6


    (153.6)

    %

    Finance and Insurance, Net



    2.5



    2.9


    (13.8)

    %




    4.8



    5.9


    (18.6)

    %

    Service and Parts



    30.9



    37.3


    (17.2)

    %




    65.4



    73.3


    (10.8)

    %

    Wholesale and Other



    1.9



    3.5


    (45.7)

    %




    4.5



    5.8


    (22.4)

    %

    Total Gross Profit


    $

    39.1


    $

    58.4


    (33.0)

    %



    $

    85.2


    $

    112.6


    (24.3)

    %





















    Retail Commercial Truck Same-Store Revenue Per Vehicle Retailed:




















    New Vehicles


    $

    117,892


    $

    111,818


    5.4

    %



    $

    114,195


    $

    111,014


    2.9

    %

    Used Vehicles



    47,938



    62,693


    (23.5)

    %




    48,482



    60,430


    (19.8)

    %





















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




















    New Vehicles


    $

    4,671


    $

    4,461


    4.7

    %



    $

    4,342


    $

    4,848


    (10.4)

    %

    Used Vehicles



    (4,235)



    6,575


    (164.4)

    %




    (2,910)



    6,566


    (144.3)

    %

    Finance and Insurance



    1,387



    926


    49.8

    %




    1,166



    1,090


    7.0

    %





















    Retail Commercial Truck Same-Store Gross Margin:




















    New Vehicles



    4.0

    %


    4.0

    %

    ---

    bps




    3.8

    %


    4.4

    %

    -60

    bps

    Used Vehicles



    (8.7)

    %


    10.5

    %

    -1,920

    bps




    (6.1)

    %


    10.8

    %

    -1,690

    bps

    Service and Parts



    40.7

    %


    39.4

    %

    +130

    bps




    40.3

    %


    39.5

    %

    +80

    bps

    Total Gross Margin



    15.3

    %


    13.7

    %

    +160

    bps




    14.7

    %


    14.8

    %

    -10

    bps





















    Retail Commercial Truck Revenue Mix Percentages:




















    New Vehicles



    58.4

    %


    69.4

    %

    -1,100

    bps




    61.1

    %


    66.4

    %

    -530

    bps

    Used Vehicles



    9.4

    %


    6.5

    %

    +290

    bps




    8.5

    %


    6.8

    %

    +170

    bps

    Finance and Insurance, Net



    1.0

    %


    0.7

    %

    +30

    bps




    0.8

    %


    0.8

    %

    ---

    bps

    Service and Parts



    29.8

    %


    22.2

    %

    +760

    bps




    27.9

    %


    24.5

    %

    +340

    bps

    Wholesale and Other



    1.4

    %


    1.2

    %

    +20

    bps




    1.7

    %


    1.5

    %

    +20

    bps

    Total



    100.0

    %


    100.0

    %






    100.0

    %


    100.0

    %























    Retail Commercial Truck Gross Profit Mix Percentages:




















    New Vehicles



    15.1

    %


    20.2

    %

    -510

    bps




    15.8

    %


    19.5

    %

    -370

    bps

    Used Vehicles



    (5.4)

    %


    5.0

    %

    -1,040

    bps




    (3.5)

    %


    5.0

    %

    -850

    bps

    Finance and Insurance, Net



    6.4

    %


    5.0

    %

    +140

    bps




    5.6

    %


    5.2

    %

    +40

    bps

    Service and Parts



    79.0

    %


    63.9

    %

    +1,510

    bps




    76.8

    %


    65.1

    %

    +1,170

    bps

    Wholesale and Other



    4.9

    %


    5.9

    %

    -100

    bps




    5.3

    %


    5.2

    %

    +10

    bps

    Total



    100.0

    %


    100.0

    %






    100.0

    %


    100.0

    %



     

    PENSKE AUTOMOTIVE GROUP, INC.

    Consolidated Non-GAAP Reconciliations

    (Unaudited)


    The following tables reconcile reported net income to earnings before interest, taxes, depreciation, and amortization ("EBITDA") for the three and six months ended June 30, 2020 and 2019:





    Three Months Ended









    June 30,


    2020 vs. 2019

    (Amounts in Millions)


    2020


    2019


    Change


    % Change














    Net Income


    $

    44.8


    $

    118.5


    $

    (73.7)


    (62.2)

    %

    Add: Depreciation



    27.9



    27.1



    0.8


    3.0

    %

    Other Interest Expense



    28.4



    30.4



    (2.0)


    (6.6)

    %

    Income Taxes



    16.5



    41.5



    (25.0)


    (60.2)

    %

    Income from Discontinued Operations, net of tax



    (0.1)



    (0.1)




    nm


    EBITDA


    $

    117.5


    $

    217.4


    $

    (99.9)


    (46.0)

    %

























    Six Months Ended









    June 30,


    2020 vs. 2019

    (Amounts in Millions)


    2020


    2019


    Change


    % Change














    Net Income


    $

    96.3


    $

    217.7


    $

    (121.4)


    (55.8)

    %

    Add: Depreciation



    56.4



    53.5



    2.9


    5.4

    %

    Other Interest Expense



    60.1



    60.3



    (0.2)


    (0.3)

    %

    Income Taxes



    36.6



    76.2



    (39.6)


    (52.0)

    %

    Income from Discontinued Operations, net of tax



    (0.2)



    (0.2)




    nm


    EBITDA


    $

    249.2


    $

    407.5


    $

    (158.3)


    (38.8)

    %





    nm – not meaningful


     

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




    Six Months Ended



    June 30,

    (Amounts in Millions)


    2020





    Net cash provided by continuing operating activities


    $

    784.4

    Add: Proceeds from sale of dealerships



    10.3

    Add: Proceeds from sale of equipment and improvements



    19.8

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



    (309.9)

    Less: Purchase of equipment and improvements



    (76.8)

    Free Cash Flow


    $

    427.8

     

     

    Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/penske-automotive-reports-second-quarter-2020-results-301101971.html

    SOURCE Penske Automotive Group, Inc.