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Press Release

Penske Automotive Reports Fourth Quarter 2019 Results

Record Fourth Quarter Revenues Up 8.1%

Earnings Before Taxes Up 10.2%

Record Fourth Quarter 2019 Earnings Per Share Up 8.7% to $1.25

Record Fourth Quarter 2019 Earnings Per Share Up 12.6% When Compared to Adjusted 2018

Company Release - 2/5/2020 6:59 AM ET

BLOOMFIELD HILLS, Mich., Feb. 5, 2020 /PRNewswire/ -- Penske Automotive Group, Inc. (NYSE:PAG), a diversified international transportation services company, today announced fourth quarter and full year 2019 results. For the three months ended December 31, 2019, income from continuing operations attributable to common shareholders increased 3.9% to $101.6 million, and related earnings per share increased 8.7% to $1.25 per share. This compares to income from continuing operations of $97.8 million and related earnings per share of $1.15 in the prior year. Fourth quarter 2018 income from continuing operations and earnings per share attributable to common shareholders included a net benefit of $2.9 million, or $0.04 per share, related to a gain on dealership sales, partially offset by valuation adjustments on certain franchises. Excluding this benefit, income from continuing operations increased 7.1% from $94.9 million, and related earnings per share increased 12.6% from $1.11 compared to adjusted fourth quarter of 2018 results. Foreign exchange rates had no impact on earnings per share attributable to common shareholders for the three months ended December 31, 2019.

Fourth Quarter 2019 Operational Highlights:

  • Revenue increased 8.1%
  • Same-store retail automotive revenue increased 5.5%
  • Earnings before taxes increased 10.2%
  • SG&A expenses as a percentage of gross profit improved 70 basis points to 79.1% and 110 basis points when compared to adjusted fourth quarter 2018
  • Earnings per share increased 12.6% when compared to adjusted 2018
  • New vehicle gross profit per unit retailed increased $257/unit
  • Finance and insurance revenue increased $105/unit

"I am very pleased with the performance of our business in the fourth quarter," said Penske Automotive Group Chair and CEO Roger Penske. "We grew revenue by 8%, delivered strong gross profit per unit retailed in automotive, improved selling, general and administrative expenses as a percentage of gross profit by 110-basis points and increased earnings per share by 12.6%, when compared to an adjusted fourth quarter of 2018. The strength of our U.S. auto retail operations coupled with the recent commercial truck acquisition, more than offset the challenging market conditions in the U.K. As we have moved into the first quarter of 2020, we are encouraged with the improved business conditions in the U.K., including a stronger order environment, as the U.K. officially separated from the European Union at the end of January."   

For the twelve months ended December 31, 2019, the company reported income from continuing operations attributable to common shareholders of $435.5 million, or $5.28 per share, compared to $470.5 million, or $5.52 per share in the prior year. The prior year results include an $11.6 million tax benefit from the final reconciliation of the 2017 U.S. Tax Cuts and Jobs Act, representing $0.14 per share, and a net benefit of $4.0 million, or $0.05 per share, related to a gain on dealership sales, partially offset by valuation adjustments on certain franchises. Excluding these items, 2018 adjusted income from continuing operations was $454.9 million and related adjusted earnings per share were $5.34. Foreign exchange rates negatively impacted earnings per share attributable to common shareholders by $0.07.

Used Vehicle SuperCenter Operations

For the three months ended December 31, 2019, the used vehicle supercenters increased units retailed by 3.1% to 15,405 and increased revenue by 12.0% to $292.7 million. Total gross profit per unit retailed increased 3.2%, or $61. During 2019, we opened two greenfield used supercenters, increasing our used vehicle supercenter location total to sixteen (16).

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. For the three months ended December 31, 2019, total medium and heavy-duty units retailed increased 41.2%, and revenue increased 67.3% to $599.1 million.

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 accounts for its ownership interest in PTS using the equity method of accounting. For the three months ended December 31, 2019, the company recorded $36.4 million in earnings from this investment compared to $37.8 million for the same period last year.

Share Repurchases

For the twelve months ended December 31, 2019, the company repurchased 3,986,836 shares for $174.1 million, or an average of $43.68 per share. As of December 31, 2019, the Company had remaining share repurchase authorization of approximately $200.0 million.

Conference Call

Penske Automotive Group will host a conference call discussing financial results relating to the fourth quarter of 2019 on Wednesday, February 5, 2020, at 2:00 p.m. Eastern Standard Time. To listen to the conference call, participants must dial (844) 291-6362 – [International, please dial (234) 720-6995] using access code 5287317. 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 fourth 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, 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 employs nearly 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 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 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, 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
Engage Penske Automotive: http://www.penskesocial.com
Like Penske Automotive on Facebook: https://facebook.com/penskecars
Follow Penske Automotive on Twitter: https://twitter.com/penskecars
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



Twelve Months Ended



December 31,



December 31,



2019


2018


Change



2019


2018


Change

Revenue


$

5,881.4


$

5,439.3


8.1

%



$

23,179.4


$

22,785.1


1.7

%

Cost of Sales



5,014.9



4,631.2


8.3

%




19,723.9



19,370.2


1.8

%

Gross Profit


$

866.5


$

808.1


7.2

%



$

3,455.5


$

3,414.9


1.2

%

SG&A Expenses



685.1



645.0


6.2

%




2,693.2



2,646.3


1.8

%

Depreciation



28.6



26.5


7.9

%




109.6



103.7


5.7

%

Operating Income


$

152.8


$

136.6


11.9

%



$

652.7


$

664.9


(1.8)

%

Floor Plan Interest Expense



(20.3)



(21.9)


(7.3)

%




(84.5)



(80.9)


4.4

%

Other Interest Expense



(31.0)



(28.0)


10.7

%




(124.2)



(114.7)


8.3

%

Equity in Earnings of Affiliates



37.9



39.8


(4.8)

%




147.5



134.8


9.4

%

Income from Continuing Operations Before Income Taxes


$

139.4


$

126.5


10.2

%



$

591.5


$

604.1


(2.1)

%

Income Taxes



(38.1)



(29.6)


28.7

%




(156.7)



(134.3)


16.7

%

Income from Continuing Operations


$

101.3


$

96.9


4.5

%



$

434.8


$

469.8


(7.4)

%

Income from Discontinued Operations, net of tax





0.3


nm





0.3



0.5


nm


Net Income


$

101.3


$

97.2


4.2

%



$

435.1


$

470.3


(7.5)

%

Less: Loss Attributable to Non-Controlling Interests



(0.3)



(0.9)


nm





(0.7)



(0.7)


nm


Net Income Attributable to Common Shareholders


$

101.6


$

98.1


3.6

%



$

435.8


$

471.0


(7.5)

%





















Amounts Attributable to Common Shareholders:




















Reported Income from Continuing Operations


$

101.3


$

96.9


4.5

%



$

434.8


$

469.8


(7.4)

%

Less: Loss Attributable to Non-Controlling Interests



(0.3)



(0.9)


nm





(0.7)



(0.7)


nm


Income from Continuing Operations, net of tax


$

101.6


$

97.8


3.9

%



$

435.5


$

470.5


(7.4)

%

Income from Discontinued Operations, net of tax





0.3


nm





0.3



0.5


nm


Net Income Attributable to Common Shareholders


$

101.6


$

98.1


3.6

%



$

435.8


$

471.0


(7.5)

%

Income from Continuing Operations Per Share


$

1.25


$

1.15


8.7

%



$

5.28


$

5.52


(4.3)

%

Income Per Share


$

1.25


$

1.16


7.8

%



$

5.28


$

5.53


(4.5)

%

Weighted Average Shares Outstanding



81.1



84.8


(4.4)

%




82.5



85.2


(3.2)

%





















nm – not meaningful




















 

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Balance Sheets

(Amounts In Millions)

(Unaudited)










December 31,


December 31,



2019


2018

Assets:







Cash and Cash Equivalents


$

28.1


$

39.4

Accounts Receivable, Net



960.3



929.1

Inventories



4,260.7



4,040.1

Other Current Assets



85.0



86.6

Total Current Assets



5,334.1



5,095.2

Property and Equipment, Net



2,366.4



2,250.0

Operating Lease Right-of-Use Assets



2,360.5



Intangibles



2,463.2



2,238.2

Other Long-Term Assets



1,420.2



1,321.1

Total Assets


$

13,944.4


$

10,904.5








Liabilities and Equity:







Floor Plan Notes Payable


$

2,412.5


$

2,362.2

Floor Plan Notes Payable – Non-Trade



1,594.0



1,428.6

Accounts Payable



638.8



598.2

Accrued Expenses and Other Current Liabilities



701.9



566.6

Current Portion Long-Term Debt



103.3



92.0

Liabilities Held for Sale



0.5



0.7

Total Current Liabilities



5,451.0



5,048.3

Long-Term Debt



2,257.0



2,124.7

Long-Term Operating Lease Liabilities



2,301.2



Other Long-Term Liabilities



1,123.6



1,096.8

Total Liabilities



11,132.8



8,269.8

Equity



2,811.6



2,634.7

Total Liabilities and Equity


$

13,944.4


$

10,904.5








Supplemental Balance Sheet Information







New vehicle days' supply



71



72

Used vehicle days' supply



52



57

 

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Operations

Selected Data

(Unaudited)

















Three Months Ended


Twelve Months Ended




December 31,


December 31,




2019


2018


2019


2018


Geographic Revenue Mix:














North America



62.4

%


60.0

%


59.3

%


56.5

%

U.K.



29.3

%


31.6

%


32.6

%


35.0

%

Other International



8.3

%


8.4

%


8.1

%


8.5

%

Total



100.0

%


100.0

%


100.0

%


100.0

%















Revenue: (Amounts in Millions)














Retail Automotive


$

5,162.7


$

4,949.2


$

20,615.8


$

20,849.2


Retail Commercial Trucks



599.1



358.0



2,050.5



1,374.5


Commercial Vehicles Australia/Power Systems and Other



119.6



132.1



513.1



561.4


Total


$

5,881.4


$

5,439.3


$

23,179.4


$

22,785.1
















Gross Profit: (Amounts in Millions)














Retail Automotive


$

755.1


$

720.1


$

3,038.9


$

3,058.6


Retail Commercial Trucks



78.3



54.7



277.8



211.5


Commercial Vehicles Australia/Power Systems and Other



33.1



33.3



138.8



144.8


Total


$

866.5


$

808.1


$

3,455.5


$

3,414.9
















Gross Margin:














Retail Automotive



14.6

%


14.5

%


14.7

%


14.7

%

Retail Commercial Trucks



13.1

%


15.3

%


13.5

%


15.4

%

Commercial Vehicles Australia/Power Systems and Other



27.7

%


25.2

%


27.1

%


25.8

%

Total



14.7

%


14.9

%


14.9

%


15.0

%














Three Months Ended


Twelve Months Ended




December 31,


December 31,














2019


2018


 

2019


2018


Operating Items as a Percentage of Revenue:










Gross Profit


14.7

%

14.9

%


14.9

%

15.0

%

Selling, General and Administrative Expenses


11.6

%

11.9

%


11.6

%

11.6

%

Operating Income


2.6

%

2.5

%


2.8

%

2.9

%

Income from Continuing Operations Before Income Taxes


2.4

%

2.3

%


2.6

%

2.7

%












Operating Items as a Percentage of Total Gross Profit:











Selling, General and Administrative Expenses


79.1

%

79.8

%


77.9

%

77.5

%

Operating Income


17.6

%

16.9

%


18.9

%

19.5

%
















Three Months Ended


Twelve Months Ended




December 31,


December 31,
















(Amounts in Millions)


2019


2018


2019


2018
















EBITDA*


$

199.0


$

181.0


$

825.3


$

822.5


Floorplan Credits


$

9.9


$

10.4


$

37.2


$

40.3


Rent Expense


$

58.6


$

56.8


$

232.0


$

232.1


Capital Expenditures


$

56.5


$

117.1


$

245.3


$

305.6


Stock Repurchases


$


$

13.1


$

174.1


$

68.9


_____________________________

* 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


Twelve Months Ended




December 31,


December 31,




2019


2018


2019


2018


Retail Automotive Revenue Mix:










Premium:










BMW / MINI


24

%

23

%

23

%

23

%

Audi


12

%

12

%

12

%

13

%

Mercedes-Benz


10

%

10

%

10

%

9

%

Land Rover / Jaguar


8

%

10

%

9

%

9

%

Porsche


7

%

5

%

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


71

%

70

%

70

%

70

%

Volume Non-U.S.:










Toyota


10

%

10

%

10

%

10

%

Honda


6

%

7

%

6

%

6

%

Volkswagen


3

%

4

%

4

%

4

%

Nissan


1

%

1

%

1

%

1

%

Others


2

%

1

%

2

%

1

%

Total Volume Non-U.S.


22

%

23

%

23

%

22

%

U.S.:










General Motors / Chrysler / Ford


1

%

2

%

1

%

2

%

Stand-Alone Used


6

%

5

%

6

%

6

%

Total


100

%

100

%

100

%

100

%











Retail Automotive Geographic Revenue Mix:










U.S.


60

%

59

%

57

%

55

%

U.K.


33

%

35

%

37

%

38

%

Other International


7

%

6

%

6

%

7

%

Total


100

%

100

%

100

%

100

%











Retail Automotive Geographic Gross Profit Mix:










U.S.


63

%

63

%

61

%

59

%

U.K.


31

%

31

%

33

%

35

%

Other International


6

%

6

%

6

%

6

%

Total


100

%

100

%

100

%

100

%

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

(Unaudited)























Three Months Ended



Twelve Months Ended



December 31,



December 31,



2019


2018


Change



2019


2018


Change

Retail Automotive Units:




















New Retail



55,974



56,698


(1.3)

%




222,704



235,964


(5.6)

%

Used Retail



65,284



64,171


1.7

%




284,190



282,542


0.6

%

Total



121,258



120,869


0.3

%




506,894



518,506


(2.2)

%





















Retail Automotive Revenue: (Amounts in Millions)




















New Vehicles


$

2,445.4


$

2,340.8


4.5

%



$

9,329.5


$

9,666.4


(3.5)

%

Used Vehicles



1,712.0



1,663.2


2.9

%




7,241.2



7,252.1


(0.2)

%

Finance and Insurance, Net



160.6



147.4


9.0

%




652.1



629.6


3.6

%

Service and Parts



541.9



536.3


1.0

%




2,195.9



2,151.4


2.1

%

Fleet and Wholesale



302.8



261.5


15.8

%




1,197.1



1,149.7


4.1

%

Total Revenue


$

5,162.7


$

4,949.2


4.3

%



$

20,615.8


$

20,849.2


(1.1)

%





















Retail Automotive Gross Profit: (Amounts in Millions)




















New Vehicles


$

183.9


$

171.8


7.0

%



$

695.6


$

724.6


(4.0)

%

Used Vehicles



81.9



81.6


0.4

%




366.1



409.1


(10.5)

%

Finance and Insurance, Net



160.6



147.4


9.0

%




652.1



629.6


3.6

%

Service and Parts



324.4



317.8


2.1

%




1,305.8



1,277.3


2.2

%

Fleet and Wholesale



4.3



1.5


186.7

%




19.3



18.0


7.2

%

Total Gross Profit


$

755.1


$

720.1


4.9

%



$

3,038.9


$

3,058.6


(0.6)

%





















Retail Automotive Revenue Per Vehicle Retailed:




















New Vehicles


$

43,689


$

41,285


5.8

%



$

41,892


$

40,966


2.3

%

Used Vehicles



26,224



25,919


1.2

%




25,480



25,667


(0.7)

%





















Retail Automotive Gross Profit Per Vehicle Retailed:




















New Vehicles


$

3,286


$

3,029


8.5

%



$

3,124


$

3,070


1.8

%

Used Vehicles



1,255



1,272


(1.3)

%




1,288



1,448


(11.0)

%

Finance and Insurance



1,324



1,219


8.6

%




1,287



1,214


6.0

%





















Retail Automotive Gross Margin:




















New Vehicles



7.5

%


7.3

%

+20

bps




7.5

%


7.5

%

---

bps

Used Vehicles



4.8

%


4.9

%

-10

bps




5.1

%


5.6

%

-50

bps

Service and Parts



59.9

%


59.3

%

+60

bps




59.5

%


59.4

%

+10

bps

Fleet and Wholesale



1.4

%


0.6

%

+80

bps




1.6

%


1.6

%

---

bps

Total Gross Margin



14.6

%


14.5

%

+10

bps




14.7

%


14.7

%

---

bps





















Retail Automotive Revenue Mix Percentages:




















New Vehicles



47.4

%


47.3

%

+10

bps




45.3

%


46.4

%

-110

bps

Used Vehicles



33.2

%


33.6

%

-40

bps




35.1

%


34.8

%

+30

bps

Finance and Insurance, Net



3.1

%


3.0

%

+10

bps




3.2

%


3.0

%

+20

bps

Service and Parts



10.5

%


10.8

%

-30

bps




10.7

%


10.3

%

+40

bps

Fleet and Wholesale



5.8

%


5.3

%

+50

bps




5.7

%


5.5

%

+20

bps

Total



100.0

%


100.0

%






100.0

%


100.0

%























Retail Automotive Gross Profit Mix Percentages:




















New Vehicles



24.4

%


23.9

%

+50

bps




22.9

%


23.7

%

-80

bps

Used Vehicles



10.8

%


11.3

%

-50

bps




12.0

%


13.4

%

-140

bps

Finance and Insurance, Net



21.3

%


20.5

%

+80

bps




21.5

%


20.6

%

+90

bps

Service and Parts



43.0

%


44.1

%

-110

bps




43.0

%


41.8

%

+120

bps

Fleet and Wholesale



0.5

%


0.2

%

+30

bps




0.6

%


0.5

%

+10

bps

Total



100.0

%


100.0

%






100.0

%


100.0

%



 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations Same-Store

 (Unaudited)























Three Months Ended



Twelve Months Ended



December 31,



December 31,



2019


2018


Change



2019


2018


Change

Retail Automotive Same-Store Units:




















New Retail



54,928



54,516


0.8

%




214,389



225,513


(4.9)

%

Used Retail



63,670



61,893


2.9

%




275,123



272,086


1.1

%

Total



118,598



116,409


1.9

%




489,512



497,599


(1.6)

%





















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




















New Vehicles


$

2,400.2


$

2,259.8


6.2

%



$

9,000.7


$

9,291.4


(3.1)

%

Used Vehicles



1,673.8



1,614.2


3.7

%




7,029.3



7,028.3


0.0

%

Finance and Insurance, Net



157.6



143.6


9.7

%




635.9



611.7


4.0

%

Service and Parts



533.1



519.3


2.7

%




2,134.0



2,079.9


2.6

%

Fleet and Wholesale



288.2



251.3


14.7

%




1,147.5



1,104.2


3.9

%

Total Revenue


$

5,052.9


$

4,788.2


5.5

%



$

19,947.4


$

20,115.5


(0.8)

%





















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




















New Vehicles


$

179.3


$

164.7


8.9

%



$

666.7


$

693.5


(3.9)

%

Used Vehicles



80.4



79.6


1.0

%




359.3



399.0


(9.9)

%

Finance and Insurance, Net



157.6



143.6


9.7

%




635.9



611.7


4.0

%

Service and Parts



318.3



308.4


3.2

%




1,266.4



1,234.5


2.6

%

Fleet and Wholesale



4.6



1.4


228.6

%




19.1



17.8


7.3

%

Total Gross Profit


$

740.2


$

697.7


6.1

%



$

2,947.4


$

2,956.5


(0.3)

%





















Retail Automotive Same-Store Revenue Per Vehicle Retailed:




















New Vehicles


$

43,696


$

41,452


5.4

%



$

41,983


$

41,201


1.9

%

Used Vehicles



26,289



26,080


0.8

%




25,550



25,831


(1.1)

%





















Retail Automotive Same-Store Gross Profit Per Vehicle Retailed:




















New Vehicles


$

3,265


$

3,020


8.1

%



$

3,110


$

3,075


1.1

%

Used Vehicles



1,262



1,287


(1.9)

%




1,306



1,466


(10.9)

%

Finance and Insurance



1,329



1,234


7.7

%




1,299



1,229


5.7

%





















Retail Automotive Same-Store Gross Margin:




















New Vehicles



7.5

%


7.3

%

+20

bps




7.4

%


7.5

%

-10

bps

Used Vehicles



4.8

%


4.9

%

-10

bps




5.1

%


5.7

%

-60

bps

Service and Parts



59.7

%


59.4

%

+30

bps




59.3

%


59.4

%

-10

bps

Fleet and Wholesale



1.6

%


0.6

%

+100

bps




1.7

%


1.6

%

+10

bps

Total Gross Margin



14.6

%


14.6

%

---

bps




14.8

%


14.7

%

+10

bps





















Retail Automotive Revenue Mix Percentages:




















New Vehicles



47.5

%


47.2

%

+30

bps




45.1

%


46.2

%

-110

bps

Used Vehicles



33.1

%


33.7

%

-60

bps




35.2

%


34.9

%

+30

bps

Finance and Insurance, Net



3.1

%


3.0

%

+10

bps




3.2

%


3.0

%

+20

bps

Service and Parts



10.6

%


10.8

%

-20

bps




10.7

%


10.3

%

+40

bps

Fleet and Wholesale



5.7

%


5.3

%

+40

bps




5.8

%


5.6

%

+20

bps

Total



100.0

%


100.0

%






100.0

%


100.0

%























Retail Automotive Gross Profit Mix Percentages:




















New Vehicles



24.2

%


23.6

%

+60

bps




22.6

%


23.5

%

-90

bps

Used Vehicles



10.9

%


11.4

%

-50

bps




12.2

%


13.5

%

-130

bps

Finance and Insurance, Net



21.3

%


20.6

%

+70

bps




21.6

%


20.7

%

+90

bps

Service and Parts



43.0

%


44.2

%

-120

bps




43.0

%


41.8

%

+120

bps

Fleet and Wholesale



0.6

%


0.2

%

+40

bps




0.6

%


0.5

%

+10

bps

Total



100.0

%


100.0

%






100.0

%


100.0

%




 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Commercial Truck Operations

 (Unaudited)























Three Months Ended



Twelve Months Ended



December 31,



December 31,



2019


2018


Change



2019


2018


Change

Retail Commercial Truck Units:




















New Retail



3,209



2,184


46.9

%




11,897



8,291


43.5

%

Used Retail



519



457


13.6

%




1,954



1,973


(1.0)

%

Total



3,728



2,641


41.2

%




13,851



10,264


34.9

%





















Retail Commercial Truck Revenue: (Amounts in Millions)




















New Vehicles


$

367.6


$

236.4


55.5

%



$

1,347.2


$

866.9


55.4

%

Used Vehicles



29.2



25.7


13.6

%




117.0



112.0


4.5

%

Finance and Insurance, Net



3.4



2.9


17.2

%




12.4



11.9


4.2

%

Service and Parts



162.6



88.8


83.1

%




503.3



364.5


38.1

%

Wholesale and Other



36.3



4.2


764.3

%




70.6



19.2


267.7

%

Total Revenue


$

599.1


$

358.0


67.3

%



$

2,050.5


$

1,374.5


49.2

%





















Retail Commercial Truck Gross Profit: (Amounts in Millions)




















New Vehicles


$

17.6


$

12.6


39.7

%



$

61.4


$

40.8


50.5

%

Used Vehicles



0.3



2.9


(89.7)

%




9.2



12.7


(27.6)

%

Finance and Insurance, Net



3.4



2.9


17.2

%




12.4



11.9


4.2

%

Service and Parts



53.8



34.5


55.9

%




182.4



140.8


29.5

%

Wholesale and Other



3.2



1.8


77.8

%




12.4



5.3


134.0

%

Total Gross Profit


$

78.3


$

54.7


43.1

%



$

277.8


$

211.5


31.3

%





















Retail Commercial Truck Revenue Per Vehicle Retailed:




















New Vehicles


$

114,573


$

108,216


5.9

%



$

113,239


$

104,563


8.3

%

Used Vehicles



56,041



56,183


(0.3)

%




59,865



56,767


5.5

%





















Retail Commercial Truck Gross Profit Per Vehicle Retailed:




















New Vehicles


$

5,505


$

5,745


(4.2)

%



$

5,164


$

4,916


5.0

%

Used Vehicles



546



6,243


(91.3)

%




4,706



6,422


(26.7)

%

Finance and Insurance



917



1,107


(17.2)

%




896



1,163


(23.0)

%





















Retail Commercial Truck Gross Margin:




















New Vehicles



4.8

%


5.3

%

-50

bps




4.6

%


4.7

%

-10

bps

Used Vehicles



1.0

%


11.3

%

-1,030

bps




7.9

%


11.3

%

-340

bps

Service and Parts



33.1

%


38.9

%

-580

bps




36.2

%


38.6

%

-240

bps

Total Gross Margin



13.1

%


15.3

%

-220

bps




13.5

%


15.4

%

-190

bps





















Retail Commercial Truck Revenue Mix Percentages:




















New Vehicles



61.4

%


66.0

%

-460

bps




65.7

%


63.1

%

+260

bps

Used Vehicles



4.9

%


7.2

%

-230

bps




5.7

%


8.1

%

-240

bps

Finance and Insurance, Net



0.6

%


0.8

%

-20

bps




0.6

%


0.9

%

-30

bps

Service and Parts



27.1

%


24.8

%

+230

bps




24.5

%


26.5

%

-200

bps

Wholesale and Other



6.0

%


1.2

%

+480

bps




3.5

%


1.4

%

+210

bps

Total



100.0

%


100.0

%






100.0

%


100.0

%























Retail Commercial Truck Gross Profit Mix Percentages:




















New Vehicles



22.5

%


23.0

%

-50

bps




22.1

%


19.3

%

+280

bps

Used Vehicles



0.4

%


5.3

%

-490

bps




3.3

%


6.0

%

-270

bps

Finance and Insurance, Net



4.3

%


5.3

%

-100

bps




4.5

%


5.6

%

-110

bps

Service and Parts



68.7

%


63.1

%

+560

bps




65.7

%


66.6

%

-90

bps

Wholesale and Other



4.1

%


3.3

%

+80

bps




4.4

%


2.5

%

+190

bps

Total



100.0

%


100.0

%






100.0

%


100.0

%



 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Commercial Truck Operations Same-Store

 (Unaudited)























Three Months Ended



Twelve Months Ended



December 31,



December 31,



2019


2018


Change



2019


2018


Change

Retail Commercial Truck Same-Store Units:




















New Retail



1,475



2,184


(32.5)

%




8,306



8,200


1.3

%

Used Retail



389



457


(14.9)

%




1,633



1,971


(17.1)

%

Total



1,864



2,641


(29.4)

%




9,939



10,171


(2.3)

%





















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




















New Vehicles


$

161.7


$

236.3


(31.6)

%



$

921.0


$

854.3


7.8

%

Used Vehicles



21.1



25.7


(17.9)

%




97.4



111.9


(13.0)

%

Finance and Insurance, Net



2.3



2.9


(20.7)

%




10.7



11.8


(9.3)

%

Service and Parts



87.5



88.3


(0.9)

%




368.5



360.1


2.3

%

Wholesale and Other



4.0



4.4


(9.1)

%




20.9



19.2


8.9

%

Total Revenue


$

276.6


$

357.6


(22.7)

%



$

1,418.5


$

1,357.3


4.5

%





















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




















New Vehicles


$

7.2


$

12.5


(42.4)

%



$

39.1


$

40.0


(2.3)

%

Used Vehicles



0.5



2.9


(82.8)

%




7.9



12.7


(37.8)

%

Finance and Insurance, Net



2.3



2.9


(20.7)

%




10.7



11.8


(9.3)

%

Service and Parts



34.3



34.3


%




145.4



139.1


4.5

%

Wholesale and Other



3.1



1.9


63.2

%




11.9



5.0


138.0

%

Total Gross Profit


$

47.4


$

54.5


(13.0)

%



$

215.0


$

208.6


3.1

%





















Retail Commercial Truck Same-Store Revenue Per Vehicle
Retailed:




















New Vehicles


$

109,602


$

108,216


1.3

%



$

110,883


$

104,179


6.4

%

Used Vehicles



54,245



56,183


(3.4)

%




59,654



56,782


5.1

%





















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




















New Vehicles


$

4,905


$

5,745


(14.6)

%



$

4,708


$

4,873


(3.4)

%

Used Vehicles



1,183



6,243


(81.1)

%




4,834



6,419


(24.7)

%

Finance and Insurance



1,256



1,107


13.5

%




1,073



1,162


(7.7)

%





















Retail Commercial Truck Same-Store Gross Margin:




















New Vehicles



4.5

%


5.3

%

-80

bps




4.2

%


4.7

%

-50

bps

Used Vehicles



2.4

%


11.3

%

-890

bps




8.1

%


11.3

%

-320

bps

Service and Parts



39.2

%


38.8

%

+40

bps




39.5

%


38.6

%

+90

bps

Total Gross Margin



17.1

%


15.2

%

+190

bps




15.2

%


15.4

%

-20

bps





















Retail Commercial Truck Revenue Mix Percentages:




















New Vehicles



58.5

%


66.1

%

-760

bps




64.9

%


62.9

%

+200

bps

Used Vehicles



7.6

%


7.2

%

+40

bps




6.9

%


8.2

%

-130

bps

Finance and Insurance, Net



0.8

%


0.8

%

---

bps