Penske Automotive Group, Inc. - PAG STOCK NEWS

Penske Automotive Group (NYSE:PAG) announced a quarterly dividend increase to $0.43 per share, payable on March 1, 2021, for shareholders of record on February 10, 2021. This adjustment raises the annualized dividend to $1.72 per share, yielding 2.7%, the highest among its peers. President Robert K. Kurnick stated that the company's business and cash flow remain robust despite the challenges posed by the COVID-19 pandemic, crediting operational measures that mitigate its impact.

Penske Automotive Group (NYSE:PAG) reported record results in Q3 2020, highlighted by income from continuing operations of $246.5 million, or $3.07 per share, up 112% year-over-year. Revenue was flat at $6 billion, while SG&A expenses decreased significantly, improving efficiency. The company eliminated $125-150 million in costs and repaid $300 million in long-term debt. Retail automotive same-store revenue grew 3.6%. However, total revenue for the nine months fell 15% to $14.6 billion. The board reinstated a cash dividend of $0.42 per share, payable December 1, 2020.

Penske Automotive Group (NYSE:PAG) will hold its third quarter 2020 financial results conference call on October 22, 2020, at 2:00 p.m. EDT. Participants can join the call via phone, with U.S. callers dialing (866) 394-1455 and international callers at (516) 575-8644, using conference ID 6795577. The call will be accessible online through the company's website, where a replay will also be available until October 28, 2020. Penske Automotive Group operates automotive and commercial truck dealerships across multiple regions, including North America and parts of Europe.

Penske Automotive Group (NYSE:PAG) announced the reinstatement of its dividend, declaring a $0.42 cash dividend per share, payable on December 1, 2020, to shareholders of record on November 10, 2020. Chair Roger Penske highlighted improvements in business conditions and actions taken to mitigate the impact of Covid-19, which contributed to a strong financial position. Notably, the company repaid $300 million in Senior Subordinated Notes in August 2020, ensuring liquidity and stability.

Penske Automotive Group (NYSE:PAG) has completed the redemption of $550 million in 5.75% Senior Subordinated Notes due 2022, funded by the issuance of $550 million in 3.5% Senior Subordinated Notes due 2025. This strategic move reduces future interest expenses by approximately $12 million annually and extends the debt maturity by three years. The company continues to operate in the automotive and commercial truck sectors across various countries, maintaining a strong position in the Fortune 500 and Russell indexes.

Penske Automotive Group (NYSE: PAG) announced the full repayment of its $300 million Senior Subordinated Notes, which were due on August 15, 2020. The repayment was made using its U.S. revolving credit facility, leaving over $800 million in available liquidity. Additionally, the company issued $550 million of 3.5% Senior Subordinated Notes due 2025 to refinance its existing $550 million 5.75% Senior Subordinated Notes due 2022, which will be redeemed on October 1, 2020. CEO Roger Penske highlighted the strong cash flow from the company’s diversified transportation model.

Penske Automotive Group (NYSE: PAG) announced the pricing of $550 million in fixed rate Senior Subordinated Notes due 2025 at 3.5%. This offering is subject to customary closing conditions and is expected to close on August 20, 2020. The proceeds will be used to redeem the company's existing $550 million 5.75% Senior Subordinated Notes due 2022, scheduled for redemption on October 1, 2020, along with other debts. The offering details and forward-looking statements are available in the prospectus filed with the SEC.

Penske Automotive Group (NYSE:PAG) announced a $550 million offering of fixed-rate Senior Subordinated Notes due 2025, contingent on market conditions. The net proceeds will be used to redeem existing $550 million 5.75% Senior Subordinated Notes due 2022 by October 1, 2020, and for various corporate purposes, including repaying U.S. credit agreements and floor plan debt. The offering is conducted through a prospectus supplement filed with the SEC. Forward-looking statements highlight the uncertainties associated with the financing.

Penske Automotive Group (NYSE:PAG) reported second quarter 2020 results showing a significant decline in revenue and earnings due to COVID-19 impacts. Income from continuing operations was $45 million, or $0.56 per share, down from $117.7 million year-over-year. Revenue fell from $5.8 billion to $3.7 billion. Same-store new and used vehicle sales plummeted by 71% and 50% in April and May, respectively. The company generated $784 million in cash flow from operations and suspended its dividend, preserving $34 million in cash. The balance sheet remains strong, with $1.2 billion in liquidity.