Penske Automotive Reports All Time Record Second Quarter Results

Rhea-AI Summary

Penske Automotive Group (NYSE:PAG) reported second quarter 2021 results showing a remarkable 652.9% increase in income from continuing operations to $338.8 million and earnings per share of $4.20, up 650.0%. Total revenue surged 91.4% to $7.0 billion. Excluding certain charges, adjusted income rose 700.4% to $360.2 million. The company benefited from strong automotive sales, with same-store sales for new vehicles rising 91.5% and used vehicles by 74.7%. Notably, Penske's strategic acquisitions and enhanced profitability metrics display a robust operational outlook.

Positive

• 652.9% increase in income from continuing operations to $338.8 million.
• 91.4% increase in total revenue to $7.0 billion.
• 700.4% increase in adjusted income from continuing operations to $360.2 million.
• Same-store new vehicle sales increased 91.5%; used vehicle sales up 74.7%.
• Completed acquisition of KCFL expected to add $450 million in annual revenue.

Negative

• Charges of $21.4 million for debt redemption costs and increased U.K. corporate taxes.

BLOOMFIELD HILLS, Mich., July 28, 2021 /PRNewswire/ -- Penske Automotive Group, Inc. (NYSE:PAG), a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers, today announced second quarter and six months 2021 results. For the three months ended June 30, 2021, the company reported a 652.9% increase in income from continuing operations attributable to common shareholders to $338.8 million and a 650.0% increase in related earnings per share to $4.20. This compares to income from continuing operations attributable to common shareholders of $45.0 million, or $0.56 per share, in the prior year. Second quarter income from continuing operations and related earnings per share include charges of $21.4 million, consisting of $12.6 million of debt redemption costs ($0.16 per share) and $8.8 million of charges relating to the increase in U.K. corporate taxes in 2023 ($0.11 per share). Excluding these items, adjusted income from continuing operations increased 700.4% to $360.2 million, and related earnings per share increased 698.2% to $4.47. Foreign exchange positively impacted earnings per share by $0.11.

Second Quarter 2021 Operational Highlights versus Second Quarter 2020

• Same-Store New and Used Retail Automotive Unit Sales - increased 81.7%
• New +91.5%; Used +74.7%
• Total Revenue - increased 91.4% to $7.0 billion from $3.7 billion
• Same-Store Retail Automotive Revenue - increased 97.5%
• New Vehicle +104.9%; Used Vehicle +99.4%; Finance & Insurance +119.1%; Service & Parts +59.9%
• Same-Store Retail Automotive Gross Profit - increased 123.9%
• Retail Automotive Variable Gross Profit Per Unit - increased 45.8% to $5,155
• Same-Store Retail Automotive Service & Parts Gross Profit - increased 68.7%, including a 320 bps increase in gross margin
• Retail Commercial Truck Dealership Earnings Before Taxes – increased 172.1%

Second Quarter 2021 Operational Highlights versus Second Quarter 2019

• Same-Store New and Used Retail Automotive Unit Sales - increased 6.1%
• New +9.7%; Used +3.3%
• Total Revenue - increased 21.3% to $7.0 billion from $5.8 billion
• Same-Store Retail Automotive Revenue - increased 23.4%
• New Vehicle +25.7%; Used Vehicle +26.3%; Finance & Insurance +29.2%; Service & Parts +2.3%
• Same-Store Retail Automotive Gross Profit - increased 35.0%
• Retail Automotive Variable Gross Profit Per Unit - increased 48.4% to $5,155
• Same-Store Retail Automotive Service & Parts Gross Profit - increased 5.5%, including a 190 bps increase in gross margin
• Retail Commercial Truck Dealership Earnings Before Taxes – increased 109.8%
• Income from Continuing Operations - increased 187.9% to $338.8 million when compared to $117.7 million. Related earnings per share increased 195.8% to $4.20 when compared to $1.42

Commenting on the company's results, Chair and CEO Roger Penske said, "Our business produced an all-time record second quarter driven by strength across all areas of our business. Strong volume and vehicle margins, improving service and parts operations, a growing Class 8 commercial truck market, record performance at Penske Transportation Solutions, and continuing cost controls all contributed to the record performance. I am particularly pleased with the continued expense discipline driving a 1,860-basis point improvement in selling, general, and administrative expense as a percent of gross profit." Penske continued, "Despite the ongoing disruption to new vehicle supply, our performance in the quarter demonstrates the strength of the auto and commercial truck retail model and the benefit from our diversification."

For the six months ended June 30, 2021, the company reported a 439.6% increase in income from continuing operations attributable to common shareholders to $521.3 million and a 438.3% increase in related earnings per share to $6.46. This compares to income from continuing operations attributable to common shareholders of $96.6 million, or $1.20 per share, in the prior year. Excluding the charges noted above, adjusted income from continuing operations increased 461.8% to $542.7 million, and related earnings per share increased 460.8% to $6.73. Foreign exchange positively impacted earnings per share by $0.16. Total revenue increased 47.4% to $12.8 billion from $8.7 billion in the same period last year.

CarShop Used Vehicle SuperCenters
Penske Automotive Group operates nineteen CarShop Used Vehicle SuperCenters in the U.S. and U.K. The CarShop SuperCenters experienced significant improvement in the second quarter principally due to the reopening of the U.K.-based showrooms from COVID-19 restrictions beginning in April. For the three months ended June 30, 2021, retail unit sales increased by 184.0% to 18,742 while revenue increased by 207.9% to $408.2 million. For the six months ended June 30, 2021, retail unit sales increased by 31.5% to 30,137 while revenue increased by 48.6% to $650.8 million.

Retail Commercial Truck Dealerships
For the three months ended June 30, 2021, earnings before taxes increased 172.1% to $39.7 million compared to $14.6 million in the same period last year, return on sales was 6.3%, and fixed cost absorption was 133.0%. For the six months ended June 30, 2021, earnings before taxes increased 137.4% to $67.2 million compared to $28.3 million in the same period last year and return on sales was 6.3%. The increase in earnings before taxes was principally driven by a 34.3% same-store increase in new trucks sales and an increase in new and used truck gross margin, coupled with an 18.0% increase in same-store service and parts gross profit.

On April 13, 2021, the company announced that it had completed its acquisition of Kansas City Freightliner ("KCFL"), which is expected to add approximately $450 million in annualized revenue. PTG now operates 35 locations throughout the U.S. and Canada which provide services such as new and used truck sales, parts and service, and collision repair.

Penske Transportation Solutions Investment
Penske Transportation Solutions ("PTS") is a leading provider of full-service truck leasing, truck rental, contract maintenance, and logistics services. Penske Automotive Group has a 28.9% ownership interest in PTS and accounts for its ownership interest using the equity method of accounting. For the three and six months ended June 30, 2021, the company recorded $102.5 million and $156.2 million in earnings compared to $29.9 million and $43.5 million for the same period last year. The increase was principally driven by a strong North American Class 8 truck market and increased demand for the company's full-service leasing, rental, and logistics services, coupled with improved efficiency and a reduction in operating expenses which drove a 15.4% return on sales for PTS during the second quarter 2021.

Corporate Development and Liquidity
As mentioned above, we acquired "KCFL" in April 2021, which we expect to add $450 million in annualized revenue. In addition, in June 2021, we acquired Mercedes-Benz of South Charlotte, which is expected to add $150 million in annualized revenues. We are also constructing an Audi dealership in Southern California and a Honda dealership in Texas, both of which are expected to open either in late 2021 or early in 2022 and collectively generate approximately $100 million in annualized revenue.

During the second quarter, we opened one CarShop Used Vehicle SuperCenter in the U.S. and one CarShop Used Vehicle SuperCenter in the U.K. We also expect to open an additional four locations by the end of 2021. We are targeting 40 locations, 150,000 in unit sales, and $100 million of earnings before taxes in the CarShop Used Vehicle SuperCenter operations by the end of 2023.

During the second quarter of 2021, we issued $500 million in aggregate principal amount of 3.75% senior subordinated notes due 2029, the proceeds of which were used to redeem our $500 million in aggregate principal amount of 5.50% senior subordinated notes due 2026 on June 24, 2021. The redemption resulted in $12.6 million in debt redemption costs noted above.

As of June 30, 2021, the company had available liquidity under its various credit agreements of approximately $1.1 billion.

Dividend and Share Repurchases
On July 21, 2021, we announced an increase in the quarterly dividend to $0.45 per share payable on September 1, 2021, to shareholders of record as of August 10, 2021.

During the six months ended June 30, 2021, we repurchased 495,307 shares of our outstanding common stock for $40.9 million, or an average of $82.63 per share. At the end of the second quarter, we had $142.5 million available under our securities repurchase program approved by our Board of Directors. In July 2021, our Board of Directors increased the share repurchase authority to $250 million.

Conference Call
Penske Automotive Group will host a conference call discussing financial results relating to the second quarter of 2021 on Wednesday, July 28, 2021, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (866) 996-5381 [International, please dial (602) 585-9891] using access code 9670988. The call will also be simultaneously broadcast over the Internet through the Investors section of the Penske Automotive Group website. Additionally, an investor presentation relating to the second quarter 2021 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 a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers. PAG operates dealerships principally in the United States, the United Kingdom, Canada, Germany, and Italy and is the largest retailer of commercial trucks in North America for Freightliner. PAG also distributes and retails commercial vehicles, diesel and gas engines, power systems, and related parts and services principally in Australia and New Zealand. Additionally, PAG owns 28.9% of Penske Transportation Solutions, a business that manages a fleet of over 330,000 vehicles providing innovative transportation, supply chain, and technology solutions to North American fleets. PAG 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 adjusted income from continuing operations, adjusted earnings per share, earnings before interest, taxes, depreciation, and amortization ("EBITDA"), and adjusted earnings before interest, taxes, depreciation, and amortization. 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 financial performance. 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, government mandated restrictions on our business in light of COVID-19 or otherwise, economic conditions generally, conditions in the credit markets, changes in interest rates and foreign currency exchange rates, changes in tariff rates, new rules in place after the recent Brexit accord between the European Union and the U.K. could slow parts originating in the U.K. or Europe for distribution to our dealerships, 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, the shortage of automotive semiconductor chips or other components, 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, 2020, 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.

Inquiries should contact:

Shelley Hulgrave	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.
248-648-2812	248-648-2540
shulgrave@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,
		2021			2020			Change				2021			2020			Change
Revenue		$	6,987.5		$	3,651.1		91.4	%			$	12,761.3		$	8,660.2		47.4	%
Cost of Sales			5,804.8			3,098.2		87.4	%				10,665.4			7,330.6		45.5	%
Gross Profit		$	1,182.7		$	552.9		113.9	%			$	2,095.9		$	1,329.6		57.6	%
SG&A Expenses			749.8			453.6		65.3	%				1,414.1			1,095.4		29.1	%
Depreciation			30.2			27.9		8.2	%				59.5			56.4		5.5	%
Operating Income		$	402.7		$	71.4		464.0	%			$	622.3		$	177.8		250.0	%
Floor Plan Interest Expense			(7.9)			(11.7)		(32.5)	%				(17.4)			(29.4)		(40.8)	%
Other Interest Expense			(19.7)			(28.4)		(30.6)	%				(37.6)			(60.1)		(37.4)	%
Debt Redemption Costs			(17.0)			—		nm	%				(17.0)			—		nm	%
Equity in Earnings of Affiliates			105.6			29.9		253.2	%				161.0			44.4		262.6	%
Income from Continuing Operations Before Income Taxes		$	463.7		$	61.2		657.7	%			$	711.3		$	132.7		436.0	%
Income Taxes			(123.4)			(16.5)		647.9	%				(187.9)			(36.6)		413.4	%
Income from Continuing Operations		$	340.3		$	44.7		661.3	%			$	523.4		$	96.1		444.6	%
Income from Discontinued Operations, net of tax			0.1			0.1		nm					0.1			0.2		nm
Net Income		$	340.4		$	44.8		659.8	%			$	523.5		$	96.3		443.6	%
Less: Income (Loss) Attributable to Non-Controlling Interests			1.5			(0.3)		nm					2.1			(0.5)		nm
Net Income Attributable to Common Shareholders		$	338.9		$	45.1		651.4	%			$	521.4		$	96.8		438.6	%
Amounts Attributable to Common Shareholders:
Reported Income from Continuing Operations		$	340.3		$	44.7		661.3	%			$	523.4		$	96.1		444.6	%
Less: Income (Loss) Attributable to Non-Controlling Interests			1.5			(0.3)		nm					2.1			(0.5)		nm
Income from Continuing Operations, net of tax		$	338.8		$	45.0		652.9	%			$	521.3		$	96.6		439.6	%
Income from Discontinued Operations, net of tax			0.1			0.1		nm					0.1			0.2		nm
Net Income Attributable to Common Shareholders		$	338.9		$	45.1		651.4	%			$	521.4		$	96.8		438.6	%
Income from Continuing Operations Per Share		$	4.20		$	0.56		650.0	%			$	6.46		$	1.20		438.3	%
Income Per Share		$	4.20		$	0.56		650.0	%			$	6.46		$	1.20		438.3	%
Weighted Average Shares Outstanding			80.7			80.5		0.2	%				80.7			80.8		(0.1)	%
nm – not meaningful

 

PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Condensed Balance Sheets
(Amounts In Millions)
(Unaudited)
		June 30,			December 31,
		2021			2020
Assets:
Cash and Cash Equivalents		$	165.2		$	49.5
Accounts Receivable, Net			913.3			806.9
Inventories			2,936.9			3,425.6
Other Current Assets			126.9			126.8
Total Current Assets			4,142.3			4,408.8
Property and Equipment, Net			2,410.0			2,404.4
Operating Lease Right-of-Use Assets			2,444.9			2,416.5
Intangibles			2,676.5			2,491.8
Other Long-Term Assets			1,633.1			1,525.7
Total Assets		$	13,306.8		$	13,247.2
Liabilities and Equity:
Floor Plan Notes Payable		$	1,383.7		$	1,780.5
Floor Plan Notes Payable – Non-Trade			1,182.0			1,363.8
Accounts Payable			838.0			675.4
Accrued Expenses and Other Current Liabilities			916.8			767.2
Current Portion Long-Term Debt			81.5			87.5
Liabilities Held for Sale			0.5			0.5
Total Current Liabilities			4,402.5			4,674.9
Long-Term Debt			1,436.3			1,602.1
Long-Term Operating Lease Liabilities			2,375.5			2,350.3
Other Long-Term Liabilities			1,329.8			1,293.8
Total Liabilities			9,544.1			9,921.1
Equity			3,762.7			3,326.1
Total Liabilities and Equity		$	13,306.8		$	13,247.2

 

PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Operations
Selected Data
(Unaudited)
		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2021			2020			2021			2020
Geographic Revenue Mix:
North America			60.7	%		67.2	%		60.2	%		62.3	%
U.K.			31.4	%		22.9	%		31.7	%		28.9	%
Other International			7.9	%		9.9	%		8.1	%		8.8	%
Total			100.0	%		100.0	%		100.0	%		100.0	%
Revenue: (Amounts in Millions)
Retail Automotive		$	6,197.6		$	3,153.5		$	11,404.5		$	7,570.1
Retail Commercial Trucks			625.3			399.2			1,060.0			890.6
Commercial Vehicles Australia/Power Systems			164.6			98.4			296.8			199.5
Total		$	6,987.5		$	3,651.1		$	12,761.3		$	8,660.2
Gross Profit: (Amounts in Millions)
Retail Automotive		$	1,040.4		$	466.3		$	1,840.3		$	1,144.4
Retail Commercial Trucks			102.7			60.2			182.7			129.0
Commercial Vehicles Australia/Power Systems			39.6			26.4			72.9			56.2
Total		$	1,182.7		$	552.9		$	2,095.9		$	1,329.6
Gross Margin:
Retail Automotive			16.8	%		14.8	%		16.1	%		15.1	%
Retail Commercial Trucks			16.4	%		15.1	%		17.2	%		14.5	%
Commercial Vehicles Australia/Power Systems			24.1	%		26.8	%		24.6	%		28.2	%
Total			16.9	%		15.1	%		16.4	%		15.4	%

 

		Three Months Ended					Six Months Ended
		June 30,					June 30,
		2021		2020			2021		2020
Operating Items as a Percentage of Revenue:
Gross Profit		16.9	%	15.1	%		16.4	%	15.4	%
Selling, General and Administrative Expenses		10.7	%	12.4	%		11.1	%	12.6	%
Operating Income		5.8	%	2.0	%		4.9	%	2.1	%
Income from Continuing Operations Before Income Taxes		6.6	%	1.7	%		5.6	%	1.5	%
Operating Items as a Percentage of Total Gross Profit:
Selling, General and Administrative Expenses		63.4	%	82.0	%		67.5	%	82.4	%
Operating Income		34.0	%	12.9	%		29.7	%	13.4	%

 

		Three Months Ended							Six Months Ended
		June 30,							June 30,
(Amounts in Millions)		2021			2020				2021			2020
EBITDA (1)		$	513.6		$	117.5			$	808.4		$	249.2
Floorplan Credits		$	14.9		$	8.4			$	27.2		$	17.0
Rent Expense		$	59.5		$	56.5			$	118.4		$	114.4

(1)	See the following Non-GAAP reconciliation table.

 

PENSKE AUTOMOTIVE GROUP, INC.
Retail Automotive Operations
(Unaudited)
		Three Months Ended										Six Months Ended
		June 30,										June 30,
		2021			2020			Change				2021			2020			Change
Retail Automotive Units:
New Retail			57,789			30,687		88.3	%				108,198			73,874		46.5	%
Used Retail			74,708			42,606		75.3	%				135,151			105,656		27.9	%
Total			132,497			73,293		80.8	%				243,349			179,530		35.5	%
Retail Automotive Revenue: (Amounts in Millions)
New Vehicles		$	2,811.3		$	1,384.7		103.0	%			$	5,232.7		$	3,249.2		61.0	%
Used Vehicles			2,327.6			1,166.0		99.6	%				4,135.6			2,785.6		48.5	%
Finance and Insurance, Net			212.3			97.1		118.6	%				381.1			241.5		57.8	%
Service and Parts			546.2			345.2		58.2	%				1,049.4			858.5		22.2	%
Fleet and Wholesale			300.2			160.5		87.0	%				605.7			435.3		39.1	%
Total Revenue		$	6,197.6		$	3,153.5		96.5	%			$	11,404.5		$	7,570.1		50.7	%
Retail Automotive Gross Profit: (Amounts in Millions)
New Vehicles		$	276.6		$	106.2		160.5	%			$	481.6		$	244.8		96.7	%
Used Vehicles			194.1			55.8		247.8	%				303.5			141.7		114.2	%
Finance and Insurance, Net			212.3			97.1		118.6	%				381.1			241.5		57.8	%
Service and Parts			337.0			201.2		67.5	%				642.4			504.9		27.2	%
Fleet and Wholesale			20.4			6.0		240.0	%				31.7			11.5		175.7	%
Total Gross Profit		$	1,040.4		$	466.3		123.1	%			$	1,840.3		$	1,144.4		60.8	%
Retail Automotive Revenue Per Vehicle Retailed:
New Vehicles		$	48,648		$	45,124		7.8	%			$	48,363		$	43,983		10.0	%
Used Vehicles			31,156			27,368		13.8	%				30,599			26,365		16.1	%
Retail Automotive Gross Profit Per Vehicle Retailed:
New Vehicles		$	4,786		$	3,462		38.2	%			$	4,451		$	3,315		34.3	%
Used Vehicles			2,598			1,310		98.3	%				2,246			1,341		67.5	%
Finance and Insurance			1,603			1,324		21.1	%				1,566			1,345		16.4	%
Retail Automotive Gross Margin:
New Vehicles			9.8	%		7.7	%	+210	bps				9.2	%		7.5	%	+170	bps
Used Vehicles			8.3	%		4.8	%	+350	bps				7.3	%		5.1	%	+220	bps
Service and Parts			61.7	%		58.3	%	+340	bps				61.2	%		58.8	%	+240	bps
Fleet and Wholesale			6.8	%		3.7	%	+310	bps				5.2	%		2.6	%	+260	bps
Total Gross Margin			16.8	%		14.8	%	+200	bps				16.1	%		15.1	%	+100	bps
Retail Automotive Revenue Mix Percentages:
New Vehicles			45.4	%		43.9	%	+150	bps				45.9	%		42.9	%	+300	bps
Used Vehicles			37.6	%		37.0	%	+60	bps				36.3	%		36.8	%	(50)	bps
Finance and Insurance, Net			3.4	%		3.1	%	+30	bps				3.3	%		3.2	%	+10	bps
Service and Parts			8.8	%		10.9	%	(210)	bps				9.2	%		11.3	%	(210)	bps
Fleet and Wholesale			4.8	%		5.1	%	(30)	bps				5.3	%		5.8	%	(50)	bps
Total			100.0	%		100.0	%						100.0	%		100.0	%
Retail Automotive Gross Profit Mix Percentages:
New Vehicles			26.6	%		22.8	%	+380	bps				26.2	%		21.4	%	+480	bps
Used Vehicles			18.7	%		12.0	%	+670	bps				16.5	%		12.4	%	+410	bps
Finance and Insurance, Net			20.4	%		20.8	%	(40)	bps				20.7	%		21.1	%	(40)	bps
Service and Parts			32.4	%		43.1	%	(1,070)	bps				34.9	%		44.1	%	(920)	bps
Fleet and Wholesale			1.9	%		1.3	%	+60	bps				1.7	%		1.0	%	+70	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,
		2021			2020			Change				2021			2020			Change
Retail Automotive Same-Store Units:
New Retail			57,622			30,088		91.5	%				107,944			72,463		49.0	%
Used Retail			73,270			41,952		74.7	%				133,085			104,004		28.0	%
Total			130,892			72,040		81.7	%				241,029			176,467		36.6	%
Retail Automotive Same-Store Revenue: (Amounts in Millions)
New Vehicles		$	2,797.2		$	1,365.3		104.9	%			$	5,212.0		$	3,202.9		62.7	%
Used Vehicles			2,295.6			1,151.3		99.4	%				4,090.6			2,748.2		48.8	%
Finance and Insurance, Net			209.9			95.8		119.1	%				377.7			238.2		58.6	%
Service and Parts			543.5			340.0		59.9	%				1,045.7			844.3		23.9	%
Fleet and Wholesale			298.6			159.0		87.8	%				602.3			425.2		41.7	%
Total Revenue		$	6,144.8		$	3,111.4		97.5	%			$	11,328.3		$	7,458.8		51.9	%
Retail Automotive Same-Store Gross Profit: (Amounts in Millions)
New Vehicles		$	274.9		$	105.3		161.1	%			$	479.3		$	242.4		97.7	%
Used Vehicles			191.8			55.5		245.6	%				300.7			140.2		114.5	%
Finance and Insurance, Net			209.9			95.8		119.1	%				377.7			238.2		58.6	%
Service and Parts			334.8			198.5		68.7	%				639.3			497.1		28.6	%
Fleet and Wholesale			20.4			5.8		251.7	%				31.7			11.2		183.0	%
Total Gross Profit		$	1,031.8		$	460.9		123.9	%			$	1,828.7		$	1,129.1		62.0	%
Retail Automotive Same-Store Revenue Per Vehicle Retailed:
New Vehicles		$	48,544		$	45,378		7.0	%			$	48,285		$	44,201		9.2	%
Used Vehicles			31,330			27,444		14.2	%				30,737			26,424		16.3	%
Retail Automotive Same-Store Gross Profit Per Vehicle Retailed:
New Vehicles		$	4,770		$	3,499		36.3	%			$	4,440		$	3,345		32.7	%
Used Vehicles			2,618			1,322		98.0	%				2,260			1,348		67.7	%
Finance and Insurance			1,604			1,330		20.6	%				1,567			1,350		16.1	%
Retail Automotive Same-Store Gross Margin:
New Vehicles			9.8	%		7.7	%	+210	bps				9.2	%		7.6	%	+160	bps
Used Vehicles			8.4	%		4.8	%	+360	bps				7.4	%		5.1	%	+230	bps
Service and Parts			61.6	%		58.4	%	+320	bps				61.1	%		58.9	%	+220	bps
Fleet and Wholesale			6.8	%		3.6	%	+320	bps				5.3	%		2.6	%	+270	bps
Total Gross Margin			16.8	%		14.8	%	+200	bps				16.1	%		15.1	%	+100	bps
Retail Automotive Revenue Mix Percentages:
New Vehicles			45.5	%		43.9	%	+160	bps				46.0	%		42.9	%	+310	bps
Used Vehicles			37.4	%		37.0	%	+40	bps				36.1	%		36.8	%	(70)	bps
Finance and Insurance, Net			3.4	%		3.1	%	+30	bps				3.3	%		3.2	%	+10	bps
Service and Parts			8.8	%		10.9	%	(210)	bps				9.2	%		11.3	%	(210)	bps
Fleet and Wholesale			4.9	%		5.1	%	(20)	bps				5.4	%		5.8	%	(40)	bps
Total			100.0	%		100.0	%						100.0	%		100.0	%
Retail Automotive Gross Profit Mix Percentages:
New Vehicles			26.6	%		22.8	%	+380	bps				26.2	%		21.5	%	+470	bps
Used Vehicles			18.6	%		12.0	%	+660	bps				16.4	%		12.4	%	+400	bps
Finance and Insurance, Net			20.3	%		20.8	%	(50)	bps				20.7	%		21.1	%	(40)	bps
Service and Parts			32.4	%		43.1	%	(1,070)	bps				35.0	%		44.0	%	(900)	bps
Fleet and Wholesale			2.1	%		1.3	%	+80	bps				1.7	%		1.0	%	+70	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,
		2021			2020			Change				2021			2020			Change
Retail Commercial Truck Units:
New Retail			3,314			2,063		60.6	%				5,479			4,874		12.4	%
Used Retail			832			773		7.6	%				1,673			1,471		13.7	%
Total			4,146			2,836		46.2	%				7,152			6,345		12.7	%
Retail Commercial Truck Revenue: (Amounts in Millions)
New Vehicles		$	399.2		$	235.5		69.5	%			$	646.7		$	553.8		16.8	%
Used Vehicles			59.0			36.9		59.9	%				110.0			71.5		53.8	%
Finance and Insurance, Net			3.8			3.2		18.8	%				6.9			6.4		7.8	%
Service and Parts			157.3			111.6		40.9	%				281.9			236.0		19.4	%
Wholesale and Other			6.0			12.0		(50.0)	%				14.5			22.9		(36.7)	%
Total Revenue		$	625.3		$	399.2		56.6	%			$	1,060.0		$	890.6		19.0	%
Retail Commercial Truck Gross Profit: (Amounts in Millions)
New Vehicles		$	19.6		$	9.6		104.2	%			$	33.8		$	22.1		52.9	%
Used Vehicles			9.5			(2.9)		427.6	%				15.9			(5.3)		400.0	%
Finance and Insurance, Net			3.8			3.2		18.8	%				6.9			6.4		7.8	%
Service and Parts			66.3			49.2		34.8	%				119.0			102.5		16.1	%
Wholesale and Other			3.5			1.1		218.2	%				7.1			3.3		115.2	%
Total Gross Profit		$	102.7		$	60.2		70.6	%			$	182.7		$	129.0		41.6	%
Retail Commercial Truck Revenue Per Vehicle Retailed:
New Vehicles		$	120,445		$	114,176		5.5	%			$	118,026		$	113,621		3.9	%
Used Vehicles			70,932			47,721		48.6	%				65,729			48,622		35.2	%
Retail Commercial Truck Gross Profit Per Vehicle Retailed:
New Vehicles		$	5,909		$	4,640		27.3	%			$	6,176		$	4,534		36.2	%
Used Vehicles			11,381			(3,731)		405.0	%				9,518			(3,626)		362.5	%
Finance and Insurance			916			1,134		(19.2)	%				971			1,008		(3.7)	%
Retail Commercial Truck Gross Margin:
New Vehicles			4.9	%		4.1	%	80	bps				5.2	%		4.0	%	+120	bps
Used Vehicles			16.1	%		(7.9)	%	2,400	bps				14.5	%		(7.4)	%	2,190	bps
Service and Parts			42.1	%		44.1	%	(200)	bps				42.2	%		43.4	%	(120)	bps
Total Gross Margin			16.4	%		15.1	%	+130	bps				17.2	%		14.5	%	+270	bps
Retail Commercial Truck Revenue Mix Percentages:
New Vehicles			63.8	%		59.0	%	+480	bps				61.0	%		62.2	%	(120)	bps
Used Vehicles			9.4	%		9.2	%	20	bps				10.4	%		8.0	%	+240	bps
Finance and Insurance, Net			0.6	%		0.8	%	(20)	bps				0.7	%		0.7	%	---	bps
Service and Parts			25.2	%		28.0	%	(280)	bps				26.6	%		26.5	%	10	bps
Wholesale and Other			1.0	%		3.0	%	(200)	bps				1.3	%		2.6	%	(130)	bps
Total			100.0	%		100.0	%						100.0	%		100.0	%
Retail Commercial Truck Gross Profit Mix Percentages:
New Vehicles			19.1	%		15.9	%	+320	bps				18.5	%		17.1	%	+140	bps
Used Vehicles			9.3	%		(4.8)	%	1,410	bps				8.7	%		(4.1)	%	1,280	bps
Finance and Insurance, Net			3.7	%		5.3	%	(160)	bps				3.8	%		5.0	%	(120)	bps
Service and Parts			64.6	%		81.7	%	(1,710)	bps				65.1	%		79.5	%	(1,440)	bps
Wholesale and Other			3.3	%		1.9	%	+140	bps				3.9	%		2.5	%	+140	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,
		2021			2020			Change				2021			2020			Change
Retail Commercial Truck Same-Store Units:
New Retail			2,770			2,063		34.3	%				4,935			4,874		1.3	%
Used Retail			803			773		3.9	%				1,644			1,471		11.8	%
Total			3,573			2,836		26.0	%				6,579			6,345		3.7	%
Retail Commercial Truck Same-Store Revenue: (Amounts in Millions)
New Vehicles		$	339.9		$	235.5		44.3	%			$	587.5		$	553.8		6.1	%
Used Vehicles			56.8			36.9		53.9	%				107.7			71.5		50.6	%
Finance and Insurance, Net			3.7			3.2		15.6	%				6.9			6.4		7.8	%
Service and Parts			136.3			111.6		22.1	%				260.9			236.0		10.6	%
Wholesale and Other			6.0			12.0		(50.0)	%				14.5			22.9		(36.7)	%
Total Revenue		$	542.7		$	399.2		35.9	%			$	977.5		$	890.6		9.8	%
Retail Commercial Truck Same-Store Gross Profit: (Amounts in Millions)
New Vehicles		$	17.9		$	9.6		86.5	%			$	32.2		$	22.1		45.7	%
Used Vehicles			9.1			(2.9)		413.8	%				15.5			(5.3)		392.5	%
Finance and Insurance, Net			3.7			3.2		15.6	%				6.9			6.4		7.8	%
Service and Parts			58.0			49.2		17.9	%				110.7			102.5		8.0	%
Wholesale and Other			3.5			1.0		250.0	%				6.9			3.2		115.6	%
Total Gross Profit		$	92.2		$	60.1		53.4	%			$	172.2		$	128.9		33.6	%
Retail Commercial Truck Same-Store Revenue Per Vehicle Retailed:
New Vehicles		$	122,722		$	114,176		7.5	%			$	119,038		$	113,621		4.8	%
Used Vehicles			70,723			47,721		48.2	%				65,536			48,622		34.8	%
Retail Commercial Truck Same-Store Gross Profit Per Vehicle Retailed:
New Vehicles		$	6,462		$	4,640		39.3	%			$	6,516		$	4,534		43.7	%
Used Vehicles			11,276			(3,731)		402.2	%				9,434			(3,626)		360.2	%
Finance and Insurance			1,047			1,134		(7.7)	%				1,047			1,008		3.9	%
Retail Commercial Truck Same-Store Gross Margin:
New Vehicles			5.3	%		4.1	%	+120	bps				5.5	%		4.0	%	+150	bps
Used Vehicles			16.0	%		(7.9)	%	+2,390	bps				14.4	%		(7.4)	%	+2,180	bps
Service and Parts			42.6	%		44.1	%	(150)	bps				42.4	%		43.4	%	(100)	bps
Total Gross Margin			17.0	%		15.1	%	+190	bps				17.6	%		14.5	%	+310	bps
Retail Commercial Truck Revenue Mix Percentages:
New Vehicles			62.6	%		59.0	%	+360	bps				60.1	%		62.2	%	(210)	bps
Used Vehicles			10.5	%		9.2	%	+130	bps				11.0	%		8.0	%	+300	bps
Finance and Insurance, Net			0.7	%		0.8	%	(10)	bps				0.7	%		0.7	%	---	bps
Service and Parts			25.1	%		28.0	%	(290)	bps				26.7	%		26.5	%	+20	bps
Wholesale and Other			1.1	%		3.0	%	(190)	bps				1.5	%		2.6	%	(110)	bps
Total			100.0	%		100.0	%						100.0	%		100.0	%
Retail Commercial Truck Gross Profit Mix Percentages:
New Vehicles			19.4	%		16.0	%	+340	bps				18.7	%		17.1	%	+160	bps
Used Vehicles			9.9	%		(4.8)	%	+1,470	bps				9.0	%		(4.1)	%	+1,310	bps
Finance and Insurance, Net			4.0	%		5.3	%	(130)	bps				4.0	%		5.0	%	(100)	bps
Service and Parts			62.9	%		81.9	%	(1,900)	bps				64.3	%		79.5	%	(1,520)	bps
Wholesale and Other			3.8	%		1.6	%	+220	bps				4.0	%		2.5	%	+150	bps
Total			100.0	%		100.0	%						100.0	%		100.0	%

 

PENSKE AUTOMOTIVE GROUP, INC.
Supplemental Data
(Unaudited)
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2021		2020		2021		2020
Retail Automotive Revenue Mix:
Premium:
BMW / MINI		23	%	22	%	23	%	22	%
Audi		12	%	13	%	12	%	13	%
Mercedes-Benz		10	%	10	%	10	%	10	%
Land Rover / Jaguar		9	%	8	%	9	%	9	%
Porsche		7	%	7	%	7	%	7	%
Ferrari / Maserati		2	%	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	%	71	%
Volume Non-U.S.:
Toyota		11	%	12	%	11	%	11	%
Honda		6	%	7	%	6	%	6	%
Volkswagen		2	%	2	%	2	%	2	%
Nissan		1	%	1	%	1	%	1	%
Others		2	%	2	%	2	%	2	%
Total Volume Non-U.S.		22	%	24	%	22	%	22	%
U.S.:
General Motors / Chrysler / Ford		1	%	2	%	1	%	1	%
CarShop Used Vehicle SuperCenters		7	%	4	%	6	%	6	%
Total		100	%	100	%	100	%	100	%

 

		Three Months Ended								Six Months Ended
		June 30,								June 30,
Capital Expenditures / Stock Repurchases:		2021				2020				2021				2020
(Amounts in Millions)
Capital expenditures		$		48.4		$		51.1		$		90.8		$		76.8
Cash paid for acquisitions, net of cash acquired		$		278.0		$		—		$		278.0		$		—
Stock repurchases
Aggregate purchase price		$		40.9		$		4.8		$		40.9		$		34.2
Shares repurchased				0.5				0.1				0.5				1.0

 

Balance Sheet and Other Highlights:									June 30, 2021				December 31, 2020
(Amounts in Millions)
Cash and Cash Equivalents								$		165.2		$		49.5
Inventories								$		2,936.9		$		3,425.6
Total Floorplan Notes Payable								$		2,565.7		$		3,144.3
Total Long-Term Debt								$		1,517.8		$		1,689.6
Equity								$		3,762.7		$		3,326.1
Debt to Total Capitalization Ratio										28.7%				33.7%
Leverage Ratio										1.0x				1.8x
New vehicle days' supply										26 days				50 days
Used vehicle days' supply										38 days				48 days

 

PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Non-GAAP Reconciliations
(Unaudited)

The following tables reconcile reported income from continuing operations and earnings per share to adjusted income from continuing operations and adjusted earnings per share for the three and six months ended June 30, 2021, and 2020:

Income from Continuing Operations:

		Three Months Ended										Six Months Ended
(Amounts in Millions)		June 30,										June 30,
		2021				2020			% Change			2021				2020			% Change
Income from Continuing Operations		$	338.8			$	45.0		652.9	%		$	521.3			$	96.6		439.6	%
U.K. tax legislation changes (1)			8.8				—		nm				8.8				—		nm
Debt redemption costs (2)			12.6				—		nm				12.6				—		nm
Adjusted Income from Continuing Operations		$	360.2			$	45.0		700.4	%		$	542.7			$	96.6		461.8	%

Earnings Per Share:

		Three Months Ended										Six Months Ended
		June 30,										June 30,
		2021				2020			% Change			2021				2020			% Change
Earnings Per Share from Continuing Operations		$	4.20			$	0.56		650.0	%		$	6.46			$	1.20		438.3	%
U.K. tax legislation changes (1)			0.11				—		nm				0.11				—		nm
Debt redemption costs (2)			0.16				—		nm				0.16				—		nm
Adjusted Earnings Per Share from Continuing Operations		$	4.47			$	0.56		698.2	%		$	6.73			$	1.20		460.8	%

(1)	Related to revaluation of our U.K. deferred tax assets and liabilities due to an increase in the U.K. corporate tax rate from 19% currently to 25%, effective April 1, 2023
(2)	Related to a $17.0 million expense in connection with the redemption of our 5.50% senior subordinated notes due 2026, resulting in an after-tax charge of $12.6 million, or $0.16 per share

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, 2021, and 2020:

		Three Months Ended
		June 30,						2021 vs. 2020
(Amounts in Millions)		2021			2020			Change			% Change
Net Income		$	340.4		$	44.8		$	295.6		659.8	%
Add: Depreciation			30.2			27.9			2.3		8.2	%
Other Interest Expense			19.7			28.4			(8.7)		(30.6)	%
Income Taxes			123.4			16.5			106.9		647.9	%
Income from Discontinued Operations, net of tax			(0.1)			(0.1)			—		nm
EBITDA		$	513.6		$	117.5		$	396.1		337.1	%
Add: Debt redemption costs (see above)			17.0			—			17.0		nm
Adjusted EBITDA		$	530.6		$	117.5		$	413.1		351.6	%
		Six Months Ended
		June 30,						2021 vs. 2020
(Amounts in Millions)		2021			2020			Change			% Change
Net Income		$	523.5		$	96.3		$	427.2		443.6	%
Add: Depreciation			59.5			56.4			3.1		5.5	%
Other Interest Expense			37.6			60.1			(22.5)		(37.4)	%
Income Taxes			187.9			36.6			151.3		413.4	%
Income from Discontinued Operations, net of tax			(0.1)			(0.2)			0.1		nm
EBITDA		$	808.4		$	249.2		$	559.2		224.4	%
Add: Debt redemption costs (see above)			17.0			—			17.0		nm
Adjusted EBITDA		$	825.4		$	249.2		$	576.2		231.2	%

nm – not meaningful

 

 

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SOURCE Penske Automotive Group, Inc.

FAQ

What is Penske Automotive Group's revenue for the second quarter of 2021?

Penske Automotive Group reported total revenue of $7.0 billion for the second quarter of 2021.

How much did Penske Automotive Group's income from continuing operations increase?

Income from continuing operations increased by 652.9% to $338.8 million.

What were Penske Automotive Group's earnings per share for the second quarter of 2021?

Earnings per share for the second quarter of 2021 were $4.20.

What impact did foreign exchange have on Penske Automotive Group's earnings?

Foreign exchange positively impacted earnings per share by $0.11.

What acquisitions did Penske Automotive Group complete recently?

Penske completed the acquisition of Kansas City Freightliner (KCFL) and Mercedes-Benz of South Charlotte.