Press Release

Penske Automotive Reports Second Quarter 2019 Results

U.K. Market Conditions and BREXIT Impact Second Quarter Results

Income From Continuing Operations of $117.7 million and Related Earnings Per Share of $1.42

Acquires Warner Truck Centers - Expected to Add $1.1 Billion in Annualized Revenues

1.7 Million Shares Repurchased During Second Quarter

Company Release - 7/30/2019 6:59 AM ET

BLOOMFIELD HILLS, Mich., July 30, 2019 /PRNewswire/ -- Penske Automotive Group, Inc. (NYSE: PAG), a diversified international transportation services company, today announced second quarter and six months 2019 results, and the acquisition of Warner Truck Centers, which is expected to add over $1.1 billion in annualized revenues. For the three months ended June 30, 2019, the company reported income from continuing operations attributable to common shareholders of $117.7 million, or $1.42 per share, compared to $134.6 million, or $1.58 per share in the prior year.

Chairman Roger Penske said, "Our U.S. retail automotive, North American commercial truck dealership business, and investment in Penske Truck Leasing each performed very well during the second quarter. However, weak market conditions in the U.K. from BREXIT and the timing of customer deliveries in Australia impacted second quarter results. During the second quarter, new vehicle registrations in the U.K. market declined approximately 5%, including a nearly 7% decline in private/retail registrations, which significantly impacted our new vehicle sales volume. Additionally, an over-supply of used vehicles in the U.K. market negatively impacted used vehicle market values and our margins. As a result, the company's second quarter results were negatively impacted by approximately 16 cents per share, including foreign exchange." Penske continued, "As the U.K. continues to address Brexit we have implemented cost saving initiatives which are expected to help mitigate further weakness in the U.K. market."

Commercial Truck Dealership Acquisition

In July 2019, the company's Premier Truck Group subsidiary acquired Warner Truck Centers (www.warnertc.com), a retailer of Freightliner and Western Star medium and heavy-duty commercial trucks located in Utah and Idaho.

Warner Truck Centers consist of six dealership locations, including a flagship operation in Salt Lake City, Utah. "This is an outstanding acquisition for our business and our customers, further solidifying our relationship with Daimler Trucks North America," said Premier Truck Group President Richard Shearing. "Warner Truck Centers operate within key transportation corridors across the central northern U.S. market, providing our business with additional scale and leverage opportunities through an expanded footprint now representing 25 dealerships."

Roger Penske, Penske Automotive Group Chair and CEO, said, "We welcome Warner Truck Centers to the Penske team. The acquisition of Warner Truck Centers nearly doubles our retail commercial truck dealership revenue and enhances the company's diversification while providing the opportunity for future growth and increased profitability."

Automotive Retail Second Quarter

  • Same-Store Retail Unit Sales -4.4% to 125,951
    • New unit retail sales -9.0%, Used unit retail sales -0.5%
  • Same-Store Retail Revenue -4.6%; Excluding Foreign Exchange -2.1%
    • New -8.3%; Excluding Foreign Exchange -6.2%
    • Used -1.9%; Excluding Foreign Exchange +1.2%
    • Finance & Insurance +2.3%; Excluding Foreign Exchange +5.0%
    • Service & Parts +1.0%; Excluding Foreign Exchange +3.1%
  • Same-Store Average Gross Profit Per Unit
    • New $3,133, +$18/unit; Excluding Foreign Exchange $3,216, +$101/unit
    • Used $1,406, -$140/unit; Excluding Foreign Exchange $1,445, -$101/unit
    • Finance & Insurance $1,302, +$85/unit; Excluding Foreign Exchange $1,336, +$119/unit

For the six months ended June 30, 2019, the company reported income from continuing operations attributable to common shareholders of $217.8 million, or $2.60 per share, compared to $242.6 million, or $2.84 per share in the prior year. Foreign exchange rates negatively impacted earnings per share attributable to common shareholders by $0.07.

Used Supercenter Operations

For the three months ended June 30, 2019, the used supercenters retailed 17,775 used units and generated $312.1 million in revenue compared to retail unit sales of 18,832 and revenue of $346.7 million in the same period last year. The second quarter unit decline is mainly attributable to market conditions and the decline in used vehicle market values in the U.K. For the six months ended June 30, 2019, the used supercenters retailed 35,815 used units and generated $626.5 million in revenue compared to retail unit sales of 37,505 and revenue of $677.8 million in the same period last year.

Retail Commercial Truck Operations

For the three months ended June 30, 2019, total medium and heavy-duty units retailed increased 23.2%, and revenue increased 26.0% to $426.8 million. For the six months ended June 30, 2019, total medium and heavy-duty truck units retailed increased 16.9% and revenue increased 20.3% to $759.1 million. Same-store revenue increased 26.1% and 19.7% for the three and six months ended June 30, 2019, respectively.

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 and six months ended June 30, 2019, the company recorded $38.0 million and $63.8 million in earnings from this investment compared to $35.0 million and $51.0 million for the same periods last year, respectively.

Dividend and Share Repurchases

On July 17, 2019, the company announced that its Board of Directors increased the dividend to its common stock shareholders to $0.40 per share, the 33rd consecutive increase in the quarterly dividend.

During the three months ended June 30, 2019, the company repurchased 1,706,866 shares for $76.2 million, or an average of $44.66 per share. For the six months ended June 30, 2019, the company repurchased 2,965,214 shares for $130.6 million, or an average of $44.03 per share. As of June 30, 2019, the company had a remaining share repurchase authorization of approximately $74.4 million.

Conference Call

Penske Automotive Group will host a conference call discussing financial results relating to the second quarter of 2019 on Tuesday, July 30, 2019, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (800) 230‑1085 – [International, please dial (612) 288‑0329]. 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 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, Russell 1000, and Russell 3000 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 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.

Find a vehicle: http://www.penskecars.com
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Visit Penske Automotive on YouTube: http://www.youtube.com/penskecars

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,



2019


2018


Change



2019


2018


Change

Revenue


$

5,755.8


$

5,940.3


(3.1)

%



$

11,320.2


$

11,687.2


(3.1)

%

Cost of Sales



4,888.0



5,050.5


(3.2)

%




9,600.9



9,933.0


(3.3)

%

Gross Profit


$

867.8


$

889.8


(2.5)

%



$

1,719.3


$

1,754.2


(2.0)

%

SG&A Expenses



668.9



675.4


(1.0)

%




1,335.3



1,338.5


(0.2)

%

Depreciation



27.1



25.7


5.4

%




53.5



51.3


4.3

%

Operating Income


$

171.8


$

188.7


(9.0)

%



$

330.5


$

364.4


(9.3)

%

Floor Plan Interest Expense



(21.0)



(19.9)


5.5

%




(42.8)



(38.8)


10.3

%

Other Interest Expense



(30.4)



(28.6)


6.3

%




(60.3)



(58.4)


3.3

%

Equity in Earnings of Affiliates



39.5



36.0


9.7

%




66.3



53.3


24.4

%

Income from Continuing Operations Before Income Taxes


$

159.9


$

176.2


(9.3)

%



$

293.7


$

320.5


(8.4)

%

Income Taxes



(41.5)



(41.0)


1.2

%




(76.2)



(77.6)


(1.8)

%

Income from Continuing Operations


$

118.4


$

135.2


(12.4)

%



$

217.5


$

242.9


(10.5)

%

Income from Discontinued Operations, net of tax



0.1




nm





0.2



0.1


nm


Net Income


$

118.5


$

135.2


(12.4)

%



$

217.7


$

243.0


(10.4)

%

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



0.7



0.6


nm





(0.3)



0.3


nm


Net Income Attributable to Common Shareholders


$

117.8


$

134.6


(12.5)

%



$

218.0


$

242.7


(10.2)

%





















Amounts Attributable to Common Shareholders:




















Reported Income from Continuing Operations


$

118.4


$

135.2


(12.4)

%



$

217.5


$

242.9


(10.5)

%

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



0.7



0.6


nm





(0.3)



0.3


nm


Income from Continuing Operations, net of tax


$

117.7


$

134.6


(12.6)

%



$

217.8


$

242.6


(10.2)

%

Income from Discontinued Operations, net of tax



0.1




nm





0.2



0.1


nm


Net Income Attributable to Common Shareholders


$

117.8


$

134.6


(12.5)

%



$

218.0


$

242.7


(10.2)

%

Income from Continuing Operations Per Share


$

1.42


$

1.58


(10.1)

%



$

2.60


$

2.84


(8.5)

%

Income Per Share


$

1.42


$

1.58


(10.1)

%



$

2.61


$

2.84


(8.1)

%

Weighted Average Shares Outstanding



82.9



85.0


(2.5)

%




83.7



85.5


(2.1)

%





















nm – not meaningful




















 

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Balance Sheets

(Amounts In Millions)

(Unaudited)










June 30,


December 31,



2019


2018

Assets:







Cash and Cash Equivalents


$

43.8


$

39.4

Accounts Receivable, Net



944.4



929.1

Inventories



3,978.0



4,040.1

Other Current Assets



109.1



86.6

Total Current Assets



5,075.3



5,095.2

Property and Equipment, Net



2,308.9



2,250.0

Operating Lease Right-of-Use Assets



2,380.9



Intangibles



2,235.0



2,238.2

Other Long-Term Assets



1,361.0



1,321.1

Total Assets


$

13,361.1


$

10,904.5








Liabilities and Equity:







Floor Plan Notes Payable


$

2,350.3


$

2,362.2

Floor Plan Notes Payable – Non-Trade



1,435.5



1,428.6

Accounts Payable



638.5



598.2

Accrued Expenses and Other Current Liabilities



651.8



566.6

Current Portion Long-Term Debt



93.3



92.0

Liabilities Held for Sale



0.5



0.7

Total Current Liabilities



5,169.9



5,048.3

Long-Term Debt



2,134.2



2,124.7

Long-Term Operating Lease Liabilities



2,330.3



Other Long-Term Liabilities



1,065.7



1,096.8

Total Liabilities



10,700.1



8,269.8

Equity



2,661.0



2,634.7

Total Liabilities and Equity


$

13,361.1


$

10,904.5








Supplemental Balance Sheet Information







New vehicle days' supply



78



72

Used vehicle days' supply



47



57

 

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Operations

Selected Data

(Unaudited)




Three Months Ended


Six Months Ended




June 30,


June 30,




2019


2018


2019


2018


Geographic Revenue Mix:














North America



57.9

%


55.4

%


56.4

%


54.2

%

U.K.



33.5

%


35.5

%


35.1

%


36.8

%

Other International



8.6

%


9.1

%


8.5

%


9.0

%

Total



100.0

%


100.0

%


100.0

%


100.0

%















Revenue: (Amounts in Millions)














Retail Automotive


$

5,196.3


$

5,455.5


$

10,287.5


$

10,751.5


Retail Commercial Trucks



426.8



338.8



759.1



631.2


Commercial Vehicles Australia/Power Systems and Other



132.7



146.0



273.6



304.5


Total


$

5,755.8


$

5,940.3


$

11,320.2


$

11,687.2
















Gross Profit: (Amounts in Millions)














Retail Automotive


$

774.9


$

798.0


$

1,536.4


$

1,576.3


Retail Commercial Trucks



58.5



52.4



112.9



99.0


Commercial Vehicles Australia/Power Systems and Other



34.4



39.4



70.0



78.9


Total


$

867.8


$

889.8


$

1,719.3


$

1,754.2
















Gross Margin:














Retail Automotive



14.9

%


14.6

%


14.9

%


14.7

%

Retail Commercial Trucks



13.7

%


15.5

%


14.9

%


15.7

%

Commercial Vehicles Australia/Power Systems and Other



25.9

%


27.0

%


25.6

%


25.9

%

Total



15.1

%


15.0

%


15.2

%


15.0

%








Three Months Ended


Six Months Ended



June 30,


June 30,














2019


2018



2019


2018


Operating Items as a Percentage of Revenue:













Gross Profit



15.1

%

15.0

%


15.2

%


15.0

%

Selling, General and Administrative Expenses



11.6

%

11.4

%


11.8

%


11.5

%

Operating Income



3.0

%

3.2

%


2.9

%


3.1

%

Income from Continuing Operations Before Income Taxes



2.8

%

3.0

%


2.6

%


2.7

%














Operating Items as a Percentage of Total Gross Profit:













Selling, General and Administrative Expenses



77.1

%

75.9

%


77.7

%


76.3

%

Operating Income



19.8

%

21.2

%


19.2

%


20.8

%













Three Months Ended


Six Months Ended



June 30,


June 30,












(Amounts in Millions)


2019


2018


2019


2018















EBITDA*


$

217.4


$

230.5


$

407.5



$

430.2


Floorplan Credits


$

9.1


$

10.3


$

17.6



$

18.8


Rent Expense


$

57.9


$

59.0


$

 

115.1



$

116.9


Capital Expenditures


$

71.4


$

54.1


$

134.5



$

118.8


Stock Repurchases


$

76.2


$

5.8


$

130.6



$

55.8


______________________

* See the following Non-GAAP reconciliation table.

 

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,




2019


2018


2019


2018


Retail Automotive Revenue Mix:










Premium:










BMW / MINI


23

%

23

%

23

%

22

%

Audi


12

%

13

%

12

%

14

%

Mercedes-Benz


10

%

9

%

10

%

9

%

Land Rover / Jaguar


9

%

9

%

9

%

9

%

Porsche


6

%

6

%

6

%

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

%

70

%

70

%

Volume Non-U.S.:










Toyota


10

%

9

%

10

%

9

%

Honda


7

%

7

%

6

%

6

%

Volkswagen


4

%

4

%

4

%

4

%

Nissan


1

%

1

%

1

%

1

%

Others


1

%

1

%

2

%

2

%

Total Volume Non-U.S.


23

%

22

%

23

%

22

%

U.S.:










General Motors / Chrysler / Ford


1

%

2

%

1

%

2

%

Stand-Alone Used


6

%

6

%

6

%

6

%

Total


100

%

100

%

100

%

100

%











Retail Automotive Geographic Revenue Mix:










U.S.


56

%

54

%

55

%

53

%

U.K.


37

%

39

%

38

%

40

%

Other International


7

%

7

%

7

%

7

%

Total


100

%

100

%

100

%

100

%











Retail Automotive Geographic Gross Profit Mix:










U.S.


61

%

59

%

59

%

58

%

U.K.


33

%

35

%

35

%

36

%

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,



2019


2018


Change



2019


2018


Change

Retail Automotive Units:




















New Retail



55,146



61,071


(9.7)

%




109,516



120,333


(9.0)

%

Used Retail



72,066



73,143


(1.5)

%




144,810



146,371


(1.1)

%

Total



127,212



134,214


(5.2)

%




254,326



266,704


(4.6)

%





















Retail Automotive Revenue: (Amounts in Millions)




















New Vehicles


$

2,310.4


$

2,528.6


(8.6)

%



$

4,541.6


$

4,975.4


(8.7)

%

Used Vehicles



1,852.7



1,896.9


(2.3)

%




3,704.7



3,763.7


(1.6)

%

Finance and Insurance, Net



165.5



162.9


1.6

%




325.5



323.7


0.6

%

Service and Parts



550.7



547.8


0.5

%




1,110.5



1,091.3


1.8

%

Fleet and Wholesale



317.0



319.3


(0.7)

%




605.2



597.4


1.3

%

Total Revenue


$

5,196.3


$

5,455.5


(4.8)

%



$

10,287.5


$

10,751.5


(4.3)

%





















Retail Automotive Gross Profit: (Amounts in Millions)




















New Vehicles


$

174.8


$

189.8


(7.9)

%



$

347.5


$

373.0


(6.8)

%

Used Vehicles



101.6



112.5


(9.7)

%




194.5



222.2


(12.5)

%

Finance and Insurance, Net



165.5



162.9


1.6

%




325.5



323.7


0.6

%

Service and Parts



328.3



328.2


0.0

%




659.7



646.3


2.1

%

Fleet and Wholesale



4.7



4.6


2.2

%




9.2



11.1


(17.1)

%

Total Gross Profit


$

774.9


$

798.0


(2.9)

%



$

1,536.4


$

1,576.3


(2.5)

%





















Retail Automotive Revenue Per Vehicle Retailed:




















New Vehicles


$

41,896


$

41,404


1.2

%



$

41,470


$

41,347


0.3

%

Used Vehicles



25,708



25,934


(0.9)

%




25,583



25,713


(0.5)

%





















Retail Automotive Gross Profit Per Vehicle Retailed:




















New Vehicles


$

3,170


$

3,109


2.0

%



$

3,173


$

3,100


2.4

%

Used Vehicles



1,410



1,538


(8.3)

%




1,343



1,518


(11.5)

%

Finance and Insurance



1,301



1,213


7.3

%




1,280



1,213


5.5

%





















Retail Automotive Gross Margin:




















New Vehicles



7.6

%


7.5

%

+10

bps




7.7

%


7.5

%

+20

bps

Used Vehicles



5.5

%


5.9

%

-40

bps




5.3

%


5.9

%

-60

bps

Service and Parts



59.6

%


59.9

%

-30

bps




59.4

%


59.2

%

+20

bps

Fleet and Wholesale



1.5

%


1.4

%

+10

bps




1.5

%


1.9

%

-40

bps

Total Gross Margin



14.9

%


14.6

%

+30

bps




14.9

%


14.7

%

+20

bps





















Retail Automotive Revenue Mix Percentages:




















New Vehicles



44.5

%


46.3

%

-180

bps




44.1

%


46.3

%

-220

bps

Used Vehicles



35.7

%


34.8

%

+90

bps




36.0

%


35.0

%

+100

bps

Finance and Insurance, Net



3.2

%


3.0

%

+20

bps




3.2

%


3.0

%

+20

bps

Service and Parts



10.6

%


10.0

%

+60

bps




10.8

%


10.2

%

+60

bps

Fleet and Wholesale



6.0

%


5.9

%

+10

bps




5.9

%


5.5

%

+40

bps

Total



100.0

%


100.0

%






100.0

%


100.0

%























Retail Automotive Gross Profit Mix Percentages:




















New Vehicles



22.6

%


23.8

%

-120

bps




22.6

%


23.7

%

-110

bps

Used Vehicles



13.1

%


14.1

%

-100

bps




12.7

%


14.1

%

-140

bps

Finance and Insurance, Net



21.4

%


20.4

%

+100

bps




21.2

%


20.5

%

+70

bps

Service and Parts



42.4

%


41.1

%

+130

bps




42.9

%


41.0

%

+190

bps

Fleet and Wholesale



0.5

%


0.6

%

-10

bps




0.6

%


0.7

%

-10

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,



2019


2018


Change



2019


2018


Change

Retail Automotive Same-Store Units:




















New Retail



54,540



59,938


(9.0)

%




107,166



117,529


(8.8)

%

Used Retail



71,411



71,804


(0.5)

%




142,657



143,151


(0.3)

%

Total



125,951



131,742


(4.4)

%




249,823



260,680


(4.2)

%





















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




















New Vehicles


$

2,273.1


$

2,479.3


(8.3)

%



$

4,427.4


$

4,861.1


(8.9)

%

Used Vehicles



1,833.7



1,869.0


(1.9)

%




3,650.0



3,697.3


(1.3)

%

Finance and Insurance, Net



164.0



160.3


2.3

%




321.0



318.1


0.9

%

Service and Parts



541.9



536.5


1.0

%




1,086.3



1,065.1


2.0

%

Fleet and Wholesale



312.6



315.1


(0.8)

%




589.2



583.2


1.0

%

Total Revenue


$

5,125.3


$

5,360.2


(4.4)

%



$

10,073.9


$

10,524.8


(4.3)

%





















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




















New Vehicles


$

170.9


$

186.7


(8.5)

%



$

337.2


$

365.6


(7.8)

%

Used Vehicles



100.4



111.0


(9.5)

%




194.0



218.8


(11.3)

%

Finance and Insurance, Net



164.0



160.3


2.3

%




321.0



318.1


0.9

%

Service and Parts



323.2



321.9


0.4

%




645.2



630.8


2.3

%

Fleet and Wholesale



4.5



4.3


4.7

%




8.9



11.0


(19.1)

%

Total Gross Profit


$

763.0


$

784.2


(2.7)

%



$

1,506.3


$

1,544.3


(2.5)

%





















Retail Automotive Same-Store Revenue Per Vehicle Retailed:




















New Vehicles


$

41,678


$

41,365


0.8

%



$

41,314


$

41,360


(0.1)

%

Used Vehicles



25,678



26,029


(1.3)

%




25,586



25,828


(0.9)

%





















Retail Automotive Same-Store Gross Profit Per Vehicle Retailed:




















New Vehicles


$

3,133


$

3,115


0.6

%



$

3,146


$

3,111


1.1

%

Used Vehicles



1,406



1,546


(9.1)

%




1,360



1,529


(11.1)

%

Finance and Insurance



1,302



1,217


7.0

%




1,285



1,220


5.3

%





















Retail Automotive Same-Store Gross Margin:




















New Vehicles



7.5

%


7.5

%

---

bps




7.6

%


7.5

%

+10

bps

Used Vehicles



5.5

%


5.9

%

-40

bps




5.3

%


5.9

%

-60

bps

Service and Parts



59.6

%


60.0

%

-40

bps




59.4

%


59.2

%

+20

bps

Fleet and Wholesale



1.4

%


1.4

%

---

bps




1.5

%


1.9

%

-40

bps

Total Gross Margin



14.9

%


14.6

%

+30

bps




15.0

%


14.7

%

+30

bps





















Retail Automotive Revenue Mix Percentages:




















New Vehicles



44.4

%


46.3

%

-190

bps




43.9

%


46.2

%

-230

bps

Used Vehicles



35.8

%


34.9

%

+90

bps




36.2

%


35.1

%

+110

bps

Finance and Insurance, Net



3.2

%


3.0

%

+20

bps




3.2

%


3.0

%

+20

bps

Service and Parts



10.6

%


10.0

%

+60

bps




10.8

%


10.1

%

+70

bps

Fleet and Wholesale



6.0

%


5.8

%

+20

bps




5.9

%


5.6

%

+30

bps

Total



100.0

%


100.0

%






100.0

%


100.0

%























Retail Automotive Gross Profit Mix Percentages:




















New Vehicles



22.4

%


23.8

%

-140

bps




22.4

%


23.7

%

-130

bps

Used Vehicles



13.2

%


14.2

%

-100

bps




12.9

%


14.2

%

-130

bps

Finance and Insurance, Net



21.5

%


20.4

%

+110

bps




21.3

%


20.6

%

+70

bps

Service and Parts



42.4

%


41.0

%

+140

bps




42.8

%


40.8

%

+200

bps

Fleet and Wholesale



0.5

%


0.6

%

-10

bps




0.6

%


0.7

%

-10

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,



2019


2018


Change



2019


2018


Change

Retail Commercial Truck Units:




















New Retail



2,647



2,021


31.0

%




4,534



3,676


23.3

%

Used Retail



441



486


(9.3)

%




857



937


(8.5)

%

Total



3,088



2,507


23.2

%




5,391



4,613


16.9

%





















Retail Commercial Truck Revenue: (Amounts in Millions)




















New Vehicles


$

296.0


$

210.7


40.5

%



$

503.4


$

381.1


32.1

%

Used Vehicles



27.6



27.3


1.1

%




51.7



53.8


(3.9)

%

Finance and Insurance, Net



2.9



3.6


(19.4)

%




5.9



6.8


(13.2)

%

Service and Parts



94.6



92.2


2.6

%




186.1



182.6


1.9

%

Other



5.7



5.0


14.0

%




12.0



6.9


73.9

%

Total Revenue


$

426.8


$

338.8


26.0

%



$

759.1


$

631.2


20.3

%





















Retail Commercial Truck Gross Profit: (Amounts in Millions)




















New Vehicles


$

11.8


$

9.5


24.2

%



$

22.0


$

16.2


35.8

%

Used Vehicles



2.9



3.1


(6.5)

%




5.6



5.8


(3.4)

%

Finance and Insurance, Net



2.9



3.6


(19.4)

%




5.9



6.8


(13.2)

%

Service and Parts



37.3



35.9


3.9

%




73.4



69.9


5.0

%

Other



3.6



0.3


nm





6.0



0.3


nm


Total Gross Profit


$

58.5


$

52.4


11.6

%



$

112.9


$

99.0


14.0

%





















Retail Commercial Truck Revenue Per Vehicle Retailed:




















New Vehicles


$

111,818


$

104,263


7.2

%



$

111,014


$

103,685


7.1

%

Used Vehicles



62,693



56,175


11.6

%




60,430



57,394


5.3

%





















Retail Commercial Truck Gross Profit Per Vehicle Retailed:




















New Vehicles


$

4,461


$

4,673


(4.5)

%



$

4,848


$

4,400


10.2

%

Used Vehicles



6,575



6,469


1.6

%




6,566



6,161


6.6

%

Finance and Insurance



926



1,301


(28.8)

%




1,090



1,337


(18.5)

%





















Retail Commercial Truck Gross Margin:




















New Vehicles



4.0

%


4.5

%

-50

bps




4.4

%


4.3

%

+10

bps

Used Vehicles



10.5

%


11.4

%

-90

bps




10.8

%


10.8

%

---

bps

Service and Parts



39.4

%


38.9

%

+50

bps




39.4

%


38.3

%

+110

bps

Total Gross Margin



13.7

%


15.5

%

-180

bps




14.9

%


15.7

%

-80

bps





















Retail Commercial Truck Revenue Mix Percentages:




















New Vehicles



69.4

%


62.2

%

+720

bps




66.3

%


60.4

%

+590

bps

Used Vehicles



6.5

%


8.1

%

-160

bps




6.8

%


8.5

%

-170

bps

Finance and Insurance, Net



0.7

%


1.1

%

-40

bps




0.8

%


1.1

%

-30

bps

Service and Parts



22.2

%


27.2

%

-500

bps




24.5

%


28.9

%

-440

bps

Other



1.2

%


1.4

%

-20

bps




1.6

%


1.1

%

+50

bps

Total



100.0

%


100.0

%






100.0

%


100.0

%























Retail Commercial Truck Gross Profit Mix Percentages:




















New Vehicles



20.2

%


18.1

%

+210

bps




19.5

%


16.4

%

+310

bps

Used Vehicles



5.0

%


5.9

%

-90

bps




5.0

%


5.9

%

-90

bps

Finance and Insurance, Net



5.0

%


6.9

%

-190

bps




5.2

%


6.9

%

-170

bps

Service and Parts



63.8

%


68.5

%

-470

bps




65.0

%


70.6

%

-560

bps

Other



6.0

%


0.6

%

+540

bps




5.3

%


0.2

%

+510

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,



2019


2018


Change



2019


2018


Change

Retail Commercial Truck Same-Store Units:




















New Retail



2,647



2,021


31.0

%




4,465



3,646


22.5

%

Used Retail



441



486


(9.3)

%




846



936


(9.6)

%

Total



3,088



2,507


23.2

%




5,311



4,582


15.9

%





















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




















New Vehicles


$

296.0


$

210.7


40.5

%



$

495.2


$

377.5


31.2

%

Used Vehicles



27.6



27.3


1.1

%




51.4



53.7


(4.3)

%

Finance and Insurance, Net



2.9



3.6


(19.4)

%




5.8



6.1


(4.9)

%

Service and Parts



94.6



91.8


3.1

%




184.1



180.5


2.0

%

Other



5.7



5.0


14.0

%




12.0



7.6


57.9

%

Total Revenue


$

426.8


$

338.4


26.1

%



$

748.5


$

625.4


19.7

%





















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




















New Vehicles


$

11.8


$

9.5


24.2

%



$

21.4


$

15.9


34.6

%

Used Vehicles



2.9



3.1


(6.5)

%




5.6



5.8


(3.4)

%

Finance and Insurance, Net



2.9



3.6


(19.4)

%




5.8



6.1


(4.9)

%

Service and Parts



37.3



35.7


4.5

%




72.6



69.1


5.1

%

Other



3.6



0.2


nm





5.8



0.9


nm


Total Gross Profit


$

58.5


$

52.1


12.3

%



$

111.2


$

97.8


13.7

%





















Retail Commercial Truck Same-Store Revenue Per Vehicle Retailed:




















New Vehicles


$

111,818


$

104,263


7.2

%



$

110,909


$

103,545


7.1

%

Used Vehicles



62,693



56,175


11.6

%




60,721



57,390


5.8

%





















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




















New Vehicles


$

4,461


$

4,673


(4.5)

%



$

4,786


$

4,358


9.8

%

Used Vehicles



6,575



6,469


1.6

%




6,580



6,148


7.0

%

Finance and Insurance



926



1,301


(28.8)

%




1,097



1,337


(18.0)

%





















Retail Commercial Truck Same-Store Gross Margin:




















New Vehicles



4.0

%


4.5

%

-50

bps




4.3

%


4.2

%

+10

bps

Used Vehicles



10.5

%


11.4

%

-90

bps




10.9

%


10.8

%

+10

bps

Service and Parts



39.4

%


38.9

%

+50

bps




39.4

%


38.3

%

+110

bps

Total Gross Margin



13.7

%


15.4

%

-170

bps




14.9

%


15.6

%

-70

bps





















Retail Commercial Truck Revenue Mix Percentages:




















New Vehicles



69.3

%


62.3

%

+700

bps




66.2

%


60.4

%

+580

bps

Used Vehicles



6.4

%


8.1

%

-170

bps




6.9

%


8.6

%

-170

bps

Finance and Insurance, Net



0.7

%


1.1

%

-40

bps




0.8

%


1.0

%

-20

bps

Service and Parts



22.2

%


27.1

%

-490

bps




24.6

%


28.9

%

-430

bps

Other



1.4

%


1.4

%

+0

bps




1.5

%


1.1

%

+40

bps

Total



100.0

%


100.0

%






100.0

%


100.0

%























Retail Commercial Truck Gross Profit Mix Percentages:




















New Vehicles



20.2

%


18.2

%

+200

bps




19.2

%


16.3

%

+290

bps

Used Vehicles



5.0

%


6.0

%

-100

bps




5.0

%


5.9

%

-90

bps

Finance and Insurance, Net



5.0

%


6.9

%

-190

bps




5.2

%


6.2

%

-100

bps

Service and Parts



63.8

%


68.6

%

-480

bps




65.3

%


70.7

%

-540

bps

Other



6.0

%


0.3

%

+570

bps




5.3

%


0.9

%

+440

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, 2019 and 2018:




Three Months Ended









June 30,


2019 vs. 2018

(Amounts in Millions)


2019


2018


Change


% Change














Net Income


$

118.5


$

135.2


$

(16.7)


(12.4)

%

Add: Depreciation



27.1



25.7



1.4


5.4

%

Other Interest Expense



30.4



28.6



1.8


6.3

%

Income Taxes



41.5



41.0



0.5


1.2

%

Income from Discontinued Operations, net of tax



(0.1)





(0.1)



EBITDA


$

217.4


$

230.5


$

(13.1)


(5.7)

%
















Six Months Ended









June 30,


2019 vs. 2018

(Amounts in Millions)


2019


2018


Change


% Change














Net Income


$

217.7


$

243.0


$

(25.3)


(10.4)

%

Add: Depreciation



53.5



51.3



2.2


4.3

%

Other Interest Expense



60.3



58.4



1.9


3.3

%

Income Taxes



76.2



77.6



(1.4)


(1.8)

%

(Income) Loss from Discontinued Operations, net of tax



(0.2)



(0.1)



(0.1)


nm


EBITDA


$

407.5


$

430.2


$

(22.7)


(5.3)

%


nm – not meaningful

 

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