Penske Automotive Reports Second Quarter 2020 Results
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.
- Generated $784 million in cash flow from operations.
- Maintained strong liquidity with $1.2 billion available.
- Sequential month-to-month improvement in retail units sold and service/parts gross profit.
- Revenue decreased from $5.8 billion to $3.7 billion year-over-year.
- Income from continuing operations fell to $45 million from $117.7 million.
- Same-store new vehicle sales dropped 71% in April and 50% in May.
BLOOMFIELD HILLS, Mich., July 29, 2020 /PRNewswire/ -- Penske Automotive Group, Inc. (NYSE:PAG), a diversified international transportation services company, today announced second quarter and six months 2020 results. For the three months ended June 30, 2020, the company reported income from continuing operations attributable to common shareholders of
Second quarter performance was highlighted by the company's diversification, with retail commercial trucks and Penske Transportation Solutions offsetting the challenging automotive retail environment early in the second quarter. In April and May, many of our U.S. and Germany dealerships were impacted by shelter-in-place orders while operations in Italy, Spain, and the U.K. were closed. As a result, same-store new and used automotive retail unit sales declined
Commenting on the company's results, Chairman Roger Penske said, "The operating environment in the second quarter was one of the most challenging in memory. Since the COVID-19 pandemic began impacting operations, our teams took action to protect the safety of employees and customers, control costs, manage vehicle inventory, maximize gross profit and preserve liquidity. Through these actions, our business experienced sequential improvement from month to month in units retailed, service/parts gross profit and overall profitability. Penske continued, "Starting in late March, we furloughed approximately 15,000 employees, or
For the six months ended June 30, 2020, the company reported income from continuing operations attributable to common shareholders of
Second Quarter 2020 Retail Automotive Operational Information
-
Same-store new vehicle gross/unit
$3,462 , +$286 -
Same-store used vehicle gross/unit
$1,313 , -$113 -
Same-store finance & insurance per unit
$1,325 , +$9 -
Same-store variable gross profit per unit
$3,541 , +$41
Liquidity
For the six months ended June 30, 2020, the company generated
Used Vehicle SuperCenter Operations
Penske Automotive Group operates sixteen Used Vehicle SuperCenters in the U.S. and U.K. During April and May, operations at substantially all U.S. and U.K. Used Vehicle SuperCenters were closed due to shelter-in-place rules which drove a same-store unit sales decline of
Retail Commercial Truck Operations
Penske Automotive Group operates twenty-five medium and heavy-duty truck dealership locations in the U.S. and Canada offering primarily Freightliner and Western Star brands. As an essential operation, during the second quarter our commercial truck business generally remained operational in most locations, although we reduced hours of operations and limited in-person sales where applicable. For the three months ended June 30, 2020, total units retailed were 2,836 and total revenue was
Penske Transportation Solutions
Penske Transportation Solutions ("PTS"), is a leading provider of full-service truck leasing, truck rental, contract maintenance, and logistics services. The company has a
Dividend and Share Repurchases
On May 13, 2020, the company announced that its Board of Directors suspended its cash dividends to help mitigate the impact of COVID-19. The company estimated that the suspension of the dividend preserved approximately
For the six months ended June 30, 2020, the company repurchased 1,023,288 shares for
Conference Call
Penske Automotive Group will host a conference call discussing financial results relating to the second quarter of 2020 on Wednesday, July 29, 2020, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (866) 394-1455 – [International, please dial (516) 575-8644] using access code 3229936. The call will also be simultaneously broadcast over the Internet through the Investor's section of the Penske Automotive Group website. Additionally, an investor presentation relating to the second quarter 2020 financial results has been posted to the company's website. To access the presentation or to listen to the company's webcast, please refer to www.penskeautomotive.com.
About Penske Automotive
Penske Automotive Group, Inc., (NYSE:PAG) headquartered in Bloomfield Hills, Michigan, is an international transportation services company that operates automotive and commercial truck dealerships principally in the United States, the United Kingdom, Canada, and Western Europe, and distributes commercial vehicles, diesel engines, gas engines, power systems and related parts and services principally in Australia and New Zealand. PAG is a member of the Fortune 500 and Russell 1000 indexes, and is ranked among the World's Most Admired Companies by Fortune Magazine. For additional information, visit the company's website at www.penskeautomotive.com.
Non-GAAP Financial Measures
This release contains certain non-GAAP financial measures as defined under SEC rules, such as earnings before interest, taxes, depreciation, amortization ("EBITDA"), and "Free Cash Flow." The company has reconciled these measures to the most directly comparable GAAP measures in the release. The company believes that these widely accepted measures of operating profitability improve the transparency of the company's disclosures and provide a meaningful presentation of the company's results from its core business operations excluding the impact of items not related to the company's ongoing core business operations, and improve the period-to-period comparability of the company's results from its core business operations. These non-GAAP financial measures are not substitutes for GAAP financial results and should only be considered in conjunction with the company's financial information that is presented in accordance with GAAP.
Caution Concerning Forward Looking Statements
Statements in this press release may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.'s liquidity and assessment of business conditions in light of the COVID-19 pandemic. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others: the duration, severity and resolution of the COVID-19 pandemic, the number of employees returning from furlough, economic conditions generally, conditions in the credit markets, changes in interest rates and foreign currency exchange rates, changes in tariff rates, adverse impacts related to the outcome of the United Kingdom's departure from the European Union, adverse conditions affecting a particular manufacturer, including the adverse impact to the vehicle and parts supply chain due to limited vehicle availability due to the COVID-19 pandemic, WLTP and RDE, natural disasters, recall or other disruptions that interrupt the supply of vehicles or parts to us, changes in consumer credit availability, the outcome of legal and administrative matters, and other factors over which management has limited control. These forward-looking statements should be evaluated together with additional information about Penske Automotive Group's business, markets, conditions, and other uncertainties, which could affect Penske Automotive Group's future performance. These risks and uncertainties are addressed in Penske Automotive Group's Form 10-K for the year ended December 31, 2019 and its other filings with the Securities and Exchange Commission ("SEC"). This press release speaks only as of its date, and Penske Automotive Group disclaims any duty to update the information herein.
Find a vehicle
: http://www.penskecars.com
Engage Penske Automotive
: http://www.penskesocial.com
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Inquiries should contact:
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J.D. Carlson |
Anthony R. Pordon |
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Executive Vice President and |
Executive Vice President Investor Relations |
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Chief Financial Officer |
and Corporate Development |
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Penske Automotive Group, Inc. |
Penske Automotive Group, Inc. |
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248-648-2810 |
248-648-2540 |
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PENSKE AUTOMOTIVE GROUP, INC. |
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Consolidated Condensed Statements of Income |
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(Amounts In Millions, Except Per Share Data) |
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(Unaudited) |
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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2020 |
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2019 |
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Change |
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2020 |
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2019 |
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Change |
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Revenue |
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$ |
3,651.1 |
|
$ |
5,755.8 |
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(36.6) |
% |
|
|
$ |
8,660.2 |
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$ |
11,320.2 |
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(23.5) |
% |
|
Cost of Sales |
|
|
3,098.2 |
|
|
4,888.0 |
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(36.6) |
% |
|
|
|
7,330.6 |
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|
9,600.9 |
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(23.6) |
% |
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Gross Profit |
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$ |
552.9 |
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$ |
867.8 |
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(36.3) |
% |
|
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$ |
1,329.6 |
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$ |
1,719.3 |
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(22.7) |
% |
|
SG&A Expenses |
|
|
453.6 |
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668.9 |
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(32.2) |
% |
|
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1,095.4 |
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|
1,335.3 |
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(18.0) |
% |
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Depreciation |
|
|
27.9 |
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|
27.1 |
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3.0 |
% |
|
|
|
56.4 |
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|
53.5 |
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5.4 |
% |
|
Operating Income |
|
$ |
71.4 |
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$ |
171.8 |
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(58.4) |
% |
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$ |
177.8 |
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$ |
330.5 |
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(46.2) |
% |
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Floor Plan Interest Expense |
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(11.7) |
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(21.0) |
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(44.3) |
% |
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(29.4) |
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|
(42.8) |
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(31.3) |
% |
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Other Interest Expense |
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|
(28.4) |
|
|
(30.4) |
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(6.6) |
% |
|
|
|
(60.1) |
|
|
(60.3) |
|
(0.3) |
% |
|
Equity in Earnings of Affiliates |
|
|
29.9 |
|
|
39.5 |
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(24.3) |
% |
|
|
|
44.4 |
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|
66.3 |
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(33.0) |
% |
|
Income from Continuing Operations Before Income Taxes |
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$ |
61.2 |
|
$ |
159.9 |
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(61.7) |
% |
|
|
$ |
132.7 |
|
$ |
293.7 |
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(54.8) |
% |
|
Income Taxes |
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|
(16.5) |
|
|
(41.5) |
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(60.2) |
% |
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|
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(36.6) |
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|
(76.2) |
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(52.0) |
% |
|
Income from Continuing Operations |
|
$ |
44.7 |
|
$ |
118.4 |
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(62.2) |
% |
|
|
$ |
96.1 |
|
$ |
217.5 |
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(55.8) |
% |
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Income from Discontinued Operations, net of tax |
|
|
0.1 |
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0.1 |
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nm |
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|
0.2 |
|
|
0.2 |
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nm |
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Net Income |
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$ |
44.8 |
|
$ |
118.5 |
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(62.2) |
% |
|
|
$ |
96.3 |
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$ |
217.7 |
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(55.8) |
% |
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Less: (Loss) Income Attributable to Non-Controlling Interests |
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(0.3) |
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0.7 |
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nm |
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(0.5) |
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(0.3) |
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nm |
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Net Income Attributable to Common Shareholders |
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$ |
45.1 |
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$ |
117.8 |
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(61.7) |
% |
|
|
$ |
96.8 |
|
$ |
218.0 |
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(55.6) |
% |
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Amounts Attributable to Common Shareholders: |
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Reported Income from Continuing Operations |
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$ |
44.7 |
|
$ |
118.4 |
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(62.2) |
% |
|
|
$ |
96.1 |
|
$ |
217.5 |
|
(55.8) |
% |
|
Less: (Loss) Income Attributable to Non-Controlling Interests |
|
|
(0.3) |
|
|
0.7 |
|
nm |
|
|
|
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(0.5) |
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(0.3) |
|
nm |
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|
Income from Continuing Operations, net of tax |
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$ |
45.0 |
|
$ |
117.7 |
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(61.8) |
% |
|
|
$ |
96.6 |
|
$ |
217.8 |
|
(55.6) |
% |
|
Income from Discontinued Operations, net of tax |
|
|
0.1 |
|
|
0.1 |
|
nm |
|
|
|
|
0.2 |
|
|
0.2 |
|
nm |
|
|
Net Income Attributable to Common Shareholders |
|
$ |
45.1 |
|
$ |
117.8 |
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(61.7) |
% |
|
|
$ |
96.8 |
|
$ |
218.0 |
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(55.6) |
% |
|
Income from Continuing Operations Per Share |
|
$ |
0.56 |
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$ |
1.42 |
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(60.6) |
% |
|
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$ |
1.20 |
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$ |
2.60 |
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(53.8) |
% |
|
Income Per Share |
|
$ |
0.56 |
|
$ |
1.42 |
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(60.6) |
% |
|
|
$ |
1.20 |
|
$ |
2.61 |
|
(54.0) |
% |
|
Weighted Average Shares Outstanding |
|
|
80.5 |
|
|
82.9 |
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(2.9) |
% |
|
|
|
80.8 |
|
|
83.7 |
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(3.5) |
% |
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nm – not meaningful |
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PENSKE AUTOMOTIVE GROUP, INC. |
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Consolidated Condensed Balance Sheets |
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(Amounts In Millions) |
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(Unaudited) |
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June 30, |
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December 31, |
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2020 |
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2019 |
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Assets: |
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Cash and Cash Equivalents |
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$ |
159.3 |
|
$ |
28.1 |
|
Accounts Receivable, Net |
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|
756.6 |
|
|
960.3 |
|
Inventories |
|
|
3,425.9 |
|
|
4,260.7 |
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Other Current Assets |
|
|
76.6 |
|
|
85.0 |
|
Total Current Assets |
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|
4,418.4 |
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|
5,334.1 |
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Property and Equipment, Net |
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|
2,293.7 |
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|
2,366.4 |
|
Operating Lease Right-of-Use Assets |
|
|
2,311.1 |
|
|
2,360.5 |
|
Intangibles |
|
|
2,423.7 |
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|
2,463.2 |
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Other Long-Term Assets |
|
|
1,429.2 |
|
|
1,418.5 |
|
Total Assets |
|
$ |
12,876.1 |
|
$ |
13,942.7 |
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|
|
|
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Liabilities and Equity: |
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|
|
|
|
|
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Floor Plan Notes Payable |
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$ |
1,957.4 |
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$ |
2,412.5 |
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Floor Plan Notes Payable – Non-Trade |
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|
1,284.1 |
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|
1,594.0 |
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Accounts Payable |
|
|
679.4 |
|
|
638.8 |
|
Accrued Expenses and Other Current Liabilities |
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|
684.8 |
|
|
701.9 |
|
Current Portion Long-Term Debt |
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|
83.3 |
|
|
103.3 |
|
Liabilities Held for Sale |
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|
0.5 |
|
|
0.5 |
|
Total Current Liabilities |
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|
4,689.5 |
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|
5,451.0 |
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Long-Term Debt |
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|
2,054.1 |
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|
2,257.0 |
|
Long-Term Operating Lease Liabilities |
|
|
2,252.6 |
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|
2,301.2 |
|
Other Long-Term Liabilities |
|
|
1,102.3 |
|
|
1,121.9 |
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Total Liabilities |
|
|
10,098.5 |
|
|
11,131.1 |
|
Equity |
|
|
2,777.6 |
|
|
2,811.6 |
|
Total Liabilities and Equity |
|
$ |
12,876.1 |
|
$ |
13,942.7 |
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|
|
|
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Supplemental Balance Sheet Information |
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New vehicle days' supply |
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|
76 |
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|
71 |
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Used vehicle days' supply |
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|
35 |
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52 |
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PENSKE AUTOMOTIVE GROUP, INC. |
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Consolidated Statements of Cash Flow |
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Amounts in Millions |
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(Unaudited) |
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Six Months Ended |
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June 30, |
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2020 |
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2019 |
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Operating Activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
96.3 |
|
$ |
217.7 |
|
|
Adjustments to reconcile net income to net cash from continuing operating activities: |
|
|
|
|
|
|
|
|
Depreciation |
|
|
56.4 |
|
|
53.5 |
|
|
Earnings of equity method investments |
|
|
(37.6) |
|
|
(53.4) |
|
|
Income from discontinued operations, net of tax |
|
|
(0.2) |
|
|
(0.2) |
|
|
Deferred income taxes |
|
|
20.8 |
|
|
29.7 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
203.9 |
|
|
(15.2) |
|
|
Inventories |
|
|
827.3 |
|
|
35.5 |
|
|
Floor plan notes payable |
|
|
(452.6) |
|
|
15.0 |
|
|
Accounts payable and accrued expenses |
|
|
35.5 |
|
|
55.3 |
|
|
Other |
|
|
34.6 |
|
|
(33.3) |
|
|
Net cash provided by continuing operating activities |
|
|
784.4 |
|
|
304.6 |
|
|
Investing Activities: |
|
|
|
|
|
|
|
|
Purchase of equipment and improvements |
|
|
(76.8) |
|
|
(134.5) |
|
|
Proceeds from sale of dealerships |
|
|
10.3 |
|
|
7.2 |
|
|
Proceeds from sale-leaseback transactions |
|
|
— |
|
|
7.3 |
|
|
Proceeds from sale of equipment and improvements |
|
|
19.8 |
|
|
5.2 |
|
|
Acquisitions net, including repayment of sellers' floor plan notes payable of |
|
|
— |
|
|
(1.1) |
|
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Other |
|
|
(1.1) |
|
|
(6.1) |
|
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Net cash used in continuing investing activities |
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|
(47.8) |
|
|
(122.0) |
|
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Financing Activities: |
|
|
|
|
|
|
|
|
Proceeds from borrowings under U.S. credit agreement revolving credit line |
|
|
580.0 |
|
|
821.0 |
|
|
Repayments under U.S. credit agreement revolving credit line |
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|
(625.0) |
|
|
(851.0) |
|
|
Net (repayments) borrowings of other long-term debt |
|
|
(160.8) |
|
|
39.8 |
|
|
Net (repayments) borrowings of floor plan notes payable — non-trade |
|
|
(309.9) |
|
|
6.8 |
|
|
Cash paid for seller financing |
|
|
(21.1) |
|
|
— |
|
|
Repurchases of common stock |
|
|
(29.4) |
|
|
(130.6) |
|
|
Dividends |
|
|
(34.2) |
|
|
(64.5) |
|
|
Other |
|
|
(4.8) |
|
|
0.4 |
|
|
Net cash used in continuing financing activities |
|
|
(605.2) |
|
|
(178.1) |
|
|
Discontinued operations: |
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|
Net cash provided by discontinued operating activities |
|
|
0.1 |
|
|
— |
|
|
Net cash provided by discontinued investing activities |
|
|
— |
|
|
— |
|
|
Net cash provided by discontinued financing activities |
|
|
— |
|
|
— |
|
|
Net cash provided by discontinued operations |
|
|
0.1 |
|
|
— |
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
(0.3) |
|
|
(0.1) |
|
|
Net change in cash and cash equivalents |
|
|
131.2 |
|
|
4.4 |
|
|
Cash and cash equivalents, beginning of period |
|
|
28.1 |
|
|
39.4 |
|
|
Cash and cash equivalents, end of period |
|
$ |
159.3 |
|
$ |
43.8 |
|
|
Supplemental disclosures of cash flow information: |
|
|
|
|
|
|
|
|
Cash paid for: |
|
|
|
|
|
|
|
|
Interest |
|
$ |
81.9 |
|
$ |
102.6 |
|
|
Income taxes |
|
|
5.1 |
|
|
47.2 |
|
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PENSKE AUTOMOTIVE GROUP, INC. |
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|
|
Three Months Ended |
|
Six Months Ended |
|
||||||||||
|
|
|
June 30, |
|
June 30, |
|
||||||||||
|
|
|
|
2020 |
|
|
2019 |
|
2020 |
|
2019 |
|
||||
|
Geographic Revenue Mix: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
North America |
|
|
67.2 |
% |
|
57.9 |
% |
|
62.3 |
% |
|
56.4 |
% |
||
|
U.K. |
|
|
22.9 |
% |
|
33.5 |
% |
|
28.9 |
% |
|
35.1 |
% |
||
|
Other International |
|
|
9.9 |
% |
|
8.6 |
% |
|
8.8 |
% |
|
8.5 |
% |
||
|
Total |
|
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Revenue: (Amounts in Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Retail Automotive |
|
$ |
3,153.5 |
|
$ |
5,196.3 |
|
$ |
7,570.1 |
|
$ |
10,287.5 |
|
||
|
Retail Commercial Trucks |
|
|
399.2 |
|
|
426.8 |
|
|
890.6 |
|
|
759.1 |
|
||
|
Commercial Vehicles Australia/Power Systems and Other |
|
|
98.4 |
|
|
132.7 |
|
|
199.5 |
|
|
273.6 |
|
||
|
Total |
|
$ |
3,651.1 |
|
$ |
5,755.8 |
|
$ |
8,660.2 |
|
$ |
11,320.2 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Gross Profit: (Amounts in Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Retail Automotive |
|
$ |
466.3 |
|
$ |
774.9 |
|
$ |
1,144.4 |
|
$ |
1,536.4 |
|
||
|
Retail Commercial Trucks |
|
|
60.2 |
|
|
58.5 |
|
|
129.0 |
|
|
112.9 |
|
||
|
Commercial Vehicles Australia/Power Systems and Other |
|
|
26.4 |
|
|
34.4 |
|
|
56.2 |
|
|
70.0 |
|
||
|
Total |
|
$ |
552.9 |
|
$ |
867.8 |
|
$ |
1,329.6 |
|
$ |
1,719.3 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Gross Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Retail Automotive |
|
|
14.8 |
% |
|
14.9 |
% |
|
15.1 |
% |
|
14.9 |
% |
||
|
Retail Commercial Trucks |
|
|
15.1 |
% |
|
13.7 |
% |
|
14.5 |
% |
|
14.9 |
% |
||
|
Commercial Vehicles Australia/Power Systems and Other |
|
|
26.8 |
% |
|
25.9 |
% |
|
28.2 |
% |
|
25.6 |
% |
||
|
Total |
|
|
15.1 |
% |
|
15.1 |
% |
|
15.4 |
% |
|
15.2 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|||||||||
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|||||||||
|
|
|
June 30, |
|
June 30, |
|
|
|||||||||
|
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|||||
|
Operating Items as a Percentage of Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
15.1 |
% |
|
15.1 |
% |
|
15.4 |
% |
|
15.2 |
% |
|
|
|
Selling, General and Administrative Expenses |
|
|
12.4 |
% |
|
11.6 |
% |
|
12.6 |
% |
|
11.8 |
% |
|
|
|
Operating Income |
|
|
2.0 |
% |
|
3.0 |
% |
|
2.1 |
% |
|
2.9 |
% |
|
|
|
Income from Continuing Operations Before Income Taxes |
|
|
1.7 |
% |
|
2.8 |
% |
|
1.5 |
% |
|
2.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Items as a Percentage of Total Gross Profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, General and Administrative Expenses |
|
|
82.0 |
% |
|
77.1 |
% |
|
82.4 |
% |
|
77.7 |
% |
|
|
|
Operating Income |
|
|
12.9 |
% |
|
19.8 |
% |
|
13.4 |
% |
|
19.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|||||||||
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|||||||||
|
|
|
June 30, |
|
|
June 30, |
|
|||||||||
|
(Amounts in Millions) |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
EBITDA (1) |
|
$ |
117.5 |
|
$ |
217.4 |
|
$ |
249.2 |
|
$ |
407.5 |
|
||
|
Floorplan Credits |
|
$ |
8.4 |
|
$ |
9.1 |
|
$ |
17.0 |
|
$ |
17.6 |
|
||
|
Rent Expense |
|
$ |
56.5 |
|
$ |
57.9 |
|
$ |
114.4 |
|
$ |
115.1 |
|
||
|
Stock Repurchases (2) |
|
$ |
4.8 |
|
$ |
76.2 |
|
$ |
34.2 |
|
$ |
130.6 |
|
||
|
______________________________ |
|
|
(1) |
See the following Non-GAAP reconciliation table. |
|
(2) |
During the second quarter of 2020, we acquired 133,093 shares of our common stock for |
|
PENSKE AUTOMOTIVE GROUP, INC. |
|||||||||
|
Retail Automotive Operations |
|||||||||
|
Selected Data – Revenue and Gross Profit Mix |
|||||||||
|
(Unaudited) |
|||||||||
|
|
|||||||||
|
|
|
Three Months Ended |
|
Six Months Ended |
|
||||
|
|
|
June 30, |
|
June 30, |
|
||||
|
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
Retail Automotive Revenue Mix: |
|
|
|
|
|
|
|
|
|
|
Premium: |
|
|
|
|
|
|
|
|
|
|
BMW / MINI |
|
22 |
% |
23 |
% |
22 |
% |
23 |
% |
|
Audi |
|
13 |
% |
12 |
% |
13 |
% |
12 |
% |
|
Mercedes-Benz |
|
10 |
% |
10 |
% |
10 |
% |
10 |
% |
|
Land Rover / Jaguar |
|
8 |
% |
9 |
% |
9 |
% |
9 |
% |
|
Porsche |
|
7 |
% |
6 |
% |
7 |
% |
6 |
% |
|
Ferrari / Maserati |
|
3 |
% |
3 |
% |
3 |
% |
3 |
% |
|
Lexus |
|
3 |
% |
3 |
% |
3 |
% |
3 |
% |
|
Acura |
|
1 |
% |
1 |
% |
1 |
% |
1 |
% |
|
Bentley |
|
1 |
% |
1 |
% |
1 |
% |
1 |
% |
|
Others |
|
2 |
% |
2 |
% |
2 |
% |
2 |
% |
|
Total Premium |
|
70 |
% |
70 |
% |
71 |
% |
70 |
% |
|
Volume Non-U.S.: |
|
|
|
|
|
|
|
|
|
|
Toyota |
|
12 |
% |
10 |
% |
11 |
% |
10 |
% |
|
Honda |
|
7 |
% |
7 |
% |
6 |
% |
6 |
% |
|
Volkswagen |
|
2 |
% |
4 |
% |
2 |
% |
4 |
% |
|
Nissan |
|
1 |
% |
1 |
% |
1 |
% |
1 |
% |
|
Others |
|
2 |
% |
1 |
% |
2 |
% |
2 |
% |
|
Total Volume Non-U.S. |
|
24 |
% |
23 |
% |
22 |
% |
23 |
% |
|
U.S.: |
|
|
|
|
|
|
|
|
|
|
General Motors / Chrysler / Ford |
|
2 |
% |
1 |
% |
1 |
% |
1 |
% |
|
Stand-Alone Used |
|
4 |
% |
6 |
% |
6 |
% |
6 |
% |
|
Total |
|
100 |
% |
100 |
% |
100 |
% |
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Geographic Revenue Mix: |
|
|
|
|
|
|
|
|
|
|
U.S. |
|
65 |
% |
56 |
% |
60 |
% |
55 |
% |
|
U.K. |
|
27 |
% |
37 |
% |
33 |
% |
38 |
% |
|
Other International |
|
8 |
% |
7 |
% |
7 |
% |
7 |
% |
|
Total |
|
100 |
% |
100 |
% |
100 |
% |
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Geographic Gross Profit Mix: |
|
|
|
|
|
|
|
|
|
|
U.S. |
|
71 |
% |
61 |
% |
65 |
% |
59 |
% |
|
U.K. |
|
23 |
% |
33 |
% |
29 |
% |
35 |
% |
|
Other International |
|
6 |
% |
6 |
% |
6 |
% |
6 |
% |
|
Total |
|
100 |
% |
100 |
% |
100 |
% |
100 |
% |
|
PENSKE AUTOMOTIVE GROUP, INC. |
|||||||||||||||||||
|
Retail Automotive Operations |
|||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||
|
|
|||||||||||||||||||
|
|
|
Three Months Ended |
|
|
Six Months Ended |
||||||||||||||
|
|
|
June 30, |
|
|
June 30, |
||||||||||||||
|
|
|
2020 |
|
2019 |
|
Change |
|
|
2020 |
|
2019 |
|
Change |
||||||
|
Retail Automotive Units: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Retail |
|
|
30,687 |
|
|
55,146 |
|
(44.4) |
% |
|
|
|
73,874 |
|
|
109,516 |
|
(32.5) |
% |
|
Used Retail |
|
|
42,606 |
|
|
72,066 |
|
(40.9) |
% |
|
|
|
105,656 |
|
|
144,810 |
|
(27.0) |
% |
|
Total |
|
|
73,293 |
|
|
127,212 |
|
(42.4) |
% |
|
|
|
179,530 |
|
|
254,326 |
|
(29.4) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Revenue: (Amounts in Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
$ |
1,384.7 |
|
$ |
2,310.4 |
|
(40.1) |
% |
|
|
$ |
3,249.2 |
|
$ |
4,541.6 |
|
(28.5) |
% |
|
Used Vehicles |
|
|
1,166.0 |
|
|
1,852.7 |
|
(37.1) |
% |
|
|
|
2,785.6 |
|
|
3,704.7 |
|
(24.8) |
% |
|
Finance and Insurance, Net |
|
|
97.1 |
|
|
165.5 |
|
(41.3) |
% |
|
|
|
241.5 |
|
|
325.5 |
|
(25.8) |
% |
|
Service and Parts |
|
|
345.2 |
|
|
550.7 |
|
(37.3) |
% |
|
|
|
858.5 |
|
|
1,110.5 |
|
(22.7) |
% |
|
Fleet and Wholesale |
|
|
160.5 |
|
|
317.0 |
|
(49.4) |
% |
|
|
|
435.3 |
|
|
605.2 |
|
(28.1) |
% |
|
Total Revenue |
|
$ |
3,153.5 |
|
$ |
5,196.3 |
|
(39.3) |
% |
|
|
$ |
7,570.1 |
|
$ |
10,287.5 |
|
(26.4) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Gross Profit: (Amounts in Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
$ |
106.2 |
|
$ |
174.8 |
|
(39.2) |
% |
|
|
$ |
244.8 |
|
$ |
347.5 |
|
(29.6) |
% |
|
Used Vehicles |
|
|
55.8 |
|
|
101.6 |
|
(45.1) |
% |
|
|
|
141.7 |
|
|
194.5 |
|
(27.1) |
% |
|
Finance and Insurance, Net |
|
|
97.1 |
|
|
165.5 |
|
(41.3) |
% |
|
|
|
241.5 |
|
|
325.5 |
|
(25.8) |
% |
|
Service and Parts |
|
|
201.2 |
|
|
328.3 |
|
(38.7) |
% |
|
|
|
504.9 |
|
|
659.7 |
|
(23.5) |
% |
|
Fleet and Wholesale |
|
|
6.0 |
|
|
4.7 |
|
27.7 |
% |
|
|
|
11.5 |
|
|
9.2 |
|
25.0 |
% |
|
Total Gross Profit |
|
$ |
466.3 |
|
$ |
774.9 |
|
(39.8) |
% |
|
|
$ |
1,144.4 |
|
$ |
1,536.4 |
|
(25.5) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Revenue Per Vehicle Retailed: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
$ |
45,124 |
|
$ |
41,896 |
|
7.7 |
% |
|
|
$ |
43,983 |
|
$ |
41,470 |
|
6.1 |
% |
|
Used Vehicles |
|
|
27,368 |
|
|
25,708 |
|
6.5 |
% |
|
|
|
26,365 |
|
|
25,583 |
|
3.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Gross Profit Per Vehicle Retailed: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
$ |
3,462 |
|
$ |
3,170 |
|
9.2 |
% |
|
|
$ |
3,315 |
|
$ |
3,173 |
|
4.5 |
% |
|
Used Vehicles |
|
|
1,310 |
|
|
1,410 |
|
(7.1) |
% |
|
|
|
1,341 |
|
|
1,343 |
|
(0.1) |
% |
|
Finance and Insurance |
|
|
1,324 |
|
|
1,301 |
|
1.8 |
% |
|
|
|
1,345 |
|
|
1,280 |
|
5.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Gross Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
|
7.7 |
% |
|
7.6 |
% |
+10 |
bps |
|
|
|
7.5 |
% |
|
7.7 |
% |
-20 |
bps |
|
Used Vehicles |
|
|
4.8 |
% |
|
5.5 |
% |
-70 |
bps |
|
|
|
5.1 |
% |
|
5.3 |
% |
-20 |
bps |
|
Service and Parts |
|
|
58.3 |
% |
|
59.6 |
% |
-130 |
bps |
|
|
|
58.8 |
% |
|
59.4 |
% |
-60 |
bps |
|
Fleet and Wholesale |
|
|
3.7 |
% |
|
1.5 |
% |
+220 |
bps |
|
|
|
2.6 |
% |
|
1.5 |
% |
+110 |
bps |
|
Total Gross Margin |
|
|
14.8 |
% |
|
14.9 |
% |
-10 |
bps |
|
|
|
15.1 |
% |
|
14.9 |
% |
+20 |
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Revenue Mix Percentages: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
|
43.9 |
% |
|
44.5 |
% |
-60 |
bps |
|
|
|
42.9 |
% |
|
44.1 |
% |
-120 |
bps |
|
Used Vehicles |
|
|
37.0 |
% |
|
35.7 |
% |
+130 |
bps |
|
|
|
36.8 |
% |
|
36.0 |
% |
+80 |
bps |
|
Finance and Insurance, Net |
|
|
3.1 |
% |
|
3.2 |
% |
-10 |
bps |
|
|
|
3.2 |
% |
|
3.2 |
% |
--- |
bps |
|
Service and Parts |
|
|
10.9 |
% |
|
10.6 |
% |
+30 |
bps |
|
|
|
11.3 |
% |
|
10.8 |
% |
+50 |
bps |
|
Fleet and Wholesale |
|
|
5.1 |
% |
|
6.0 |
% |
-90 |
bps |
|
|
|
5.8 |
% |
|
5.9 |
% |
-10 |
bps |
|
Total |
|
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Gross Profit Mix Percentages: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
|
22.8 |
% |
|
22.6 |
% |
+20 |
bps |
|
|
|
21.4 |
% |
|
22.6 |
% |
-120 |
bps |
|
Used Vehicles |
|
|
12.0 |
% |
|
13.1 |
% |
-110 |
bps |
|
|
|
12.4 |
% |
|
12.7 |
% |
-30 |
bps |
|
Finance and Insurance, Net |
|
|
20.8 |
% |
|
21.4 |
% |
-60 |
bps |
|
|
|
21.1 |
% |
|
21.2 |
% |
-10 |
bps |
|
Service and Parts |
|
|
43.1 |
% |
|
42.4 |
% |
+70 |
bps |
|
|
|
44.1 |
% |
|
42.9 |
% |
+120 |
bps |
|
Fleet and Wholesale |
|
|
1.3 |
% |
|
0.5 |
% |
+80 |
bps |
|
|
|
1.0 |
% |
|
0.6 |
% |
+40 |
bps |
|
Total |
|
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
100.0 |
% |
|
100.0 |
% |
|
|
|
PENSKE AUTOMOTIVE GROUP, INC. |
|||||||||||||||||||
|
Retail Automotive Operations Same-Store |
|||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||
|
|
|||||||||||||||||||
|
|
|
Three Months Ended |
|
|
Six Months Ended |
||||||||||||||
|
|
|
June 30, |
|
|
June 30, |
||||||||||||||
|
|
|
2020 |
|
2019 |
|
Change |
|
|
2020 |
|
2019 |
|
Change |
||||||
|
Retail Automotive Same-Store Units: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Retail |
|
|
30,687 |
|
|
53,614 |
|
(42.8) |
% |
|
|
|
73,838 |
|
|
105,941 |
|
(30.3) |
% |
|
Used Retail |
|
|
42,229 |
|
|
70,217 |
|
(39.9) |
% |
|
|
|
103,948 |
|
|
140,581 |
|
(26.1) |
% |
|
Total |
|
|
72,916 |
|
|
123,831 |
|
(41.1) |
% |
|
|
|
177,786 |
|
|
246,522 |
|
(27.9) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Same-Store Revenue: (Amounts in Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
$ |
1,384.7 |
|
$ |
2,262.5 |
|
(38.8) |
% |
|
|
$ |
3,248.2 |
|
$ |
4,436.9 |
|
(26.8) |
% |
|
Used Vehicles |
|
|
1,159.6 |
|
|
1,812.0 |
|
(36.0) |
% |
|
|
|
2,757.2 |
|
|
3,612.8 |
|
(23.7) |
% |
|
Finance and Insurance, Net |
|
|
96.6 |
|
|
163.0 |
|
(40.7) |
% |
|
|
|
239.6 |
|
|
319.6 |
|
(25.0) |
% |
|
Service and Parts |
|
|
345.0 |
|
|
540.2 |
|
(36.1) |
% |
|
|
|
857.6 |
|
|
1,086.5 |
|
(21.1) |
% |
|
Fleet and Wholesale |
|
|
159.9 |
|
|
309.8 |
|
(48.4) |
% |
|
|
|
427.0 |
|
|
588.9 |
|
(27.5) |
% |
|
Total Revenue |
|
$ |
3,145.8 |
|
$ |
5,087.5 |
|
(38.2) |
% |
|
|
$ |
7,529.6 |
|
$ |
10,044.7 |
|
(25.0) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Same-Store Gross Profit: (Amounts in Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
$ |
106.2 |
|
$ |
170.3 |
|
(37.6) |
% |
|
|
$ |
244.8 |
|
$ |
338.2 |
|
(27.6) |
% |
|
Used Vehicles |
|
|
55.4 |
|
|
100.1 |
|
(44.7) |
% |
|
|
|
140.3 |
|
|
193.5 |
|
(27.5) |
% |
|
Finance and Insurance, Net |
|
|
96.6 |
|
|
163.0 |
|
(40.7) |
% |
|
|
|
239.6 |
|
|
319.6 |
|
(25.0) |
% |
|
Service and Parts |
|
|
201.0 |
|
|
321.9 |
|
(37.6) |
% |
|
|
|
504.1 |
|
|
645.4 |
|
(21.9) |
% |
|
Fleet and Wholesale |
|
|
6.0 |
|
|
4.8 |
|
25.0 |
% |
|
|
|
11.2 |
|
|
9.4 |
|
19.1 |
% |
|
Total Gross Profit |
|
$ |
465.2 |
|
$ |
760.1 |
|
(38.8) |
% |
|
|
$ |
1,140.0 |
|
$ |
1,506.1 |
|
(24.3) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Same-Store Revenue Per Vehicle Retailed: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
$ |
45,124 |
|
$ |
42,200 |
|
6.9 |
% |
|
|
$ |
43,991 |
|
$ |
41,881 |
|
5.0 |
% |
|
Used Vehicles |
|
|
27,460 |
|
|
25,806 |
|
6.4 |
% |
|
|
|
26,525 |
|
|
25,699 |
|
3.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Same-Store Gross Profit Per Vehicle Retailed: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
$ |
3,462 |
|
$ |
3,176 |
|
9.0 |
% |
|
|
$ |
3,315 |
|
$ |
3,193 |
|
3.8 |
% |
|
Used Vehicles |
|
|
1,313 |
|
|
1,426 |
|
(7.9) |
% |
|
|
|
1,350 |
|
|
1,376 |
|
(1.9) |
% |
|
Finance and Insurance |
|
|
1,325 |
|
|
1,316 |
|
0.7 |
% |
|
|
|
1,347 |
|
|
1,296 |
|
3.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Same-Store Gross Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
|
7.7 |
% |
|
7.5 |
% |
+20 |
bps |
|
|
|
7.5 |
% |
|
7.6 |
% |
-10 |
bps |
|
Used Vehicles |
|
|
4.8 |
% |
|
5.5 |
% |
-70 |
bps |
|
|
|
5.1 |
% |
|
5.4 |
% |
-30 |
bps |
|
Service and Parts |
|
|
58.3 |
% |
|
59.6 |
% |
-130 |
bps |
|
|
|
58.8 |
% |
|
59.4 |
% |
-60 |
bps |
|
Fleet and Wholesale |
|
|
3.8 |
% |
|
1.5 |
% |
+230 |
bps |
|
|
|
2.6 |
% |
|
1.6 |
% |
+100 |
bps |
|
Total Gross Margin |
|
|
14.8 |
% |
|
14.9 |
% |
-10 |
bps |
|
|
|
15.1 |
% |
|
15.0 |
% |
+10 |
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Revenue Mix Percentages: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
|
44.0 |
% |
|
44.5 |
% |
-50 |
bps |
|
|
|
43.1 |
% |
|
44.2 |
% |
-110 |
bps |
|
Used Vehicles |
|
|
36.9 |
% |
|
35.6 |
% |
+130 |
bps |
|
|
|
36.6 |
% |
|
36.0 |
% |
+60 |
bps |
|
Finance and Insurance, Net |
|
|
3.1 |
% |
|
3.2 |
% |
-10 |
bps |
|
|
|
3.2 |
% |
|
3.2 |
% |
--- |
bps |
|
Service and Parts |
|
|
11.0 |
% |
|
10.6 |
% |
+40 |
bps |
|
|
|
11.4 |
% |
|
10.8 |
% |
+60 |
bps |
|
Fleet and Wholesale |
|
|
5.0 |
% |
|
6.1 |
% |
-110 |
bps |
|
|
|
5.7 |
% |
|
5.8 |
% |
-10 |
bps |
|
Total |
|
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Gross Profit Mix Percentages: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
|
22.8 |
% |
|
22.4 |
% |
+40 |
bps |
|
|
|
21.5 |
% |
|
22.5 |
% |
-100 |
bps |
|
Used Vehicles |
|
|
11.9 |
% |
|
13.2 |
% |
-130 |
bps |
|
|
|
12.3 |
% |
|
12.8 |
% |
-50 |
bps |
|
Finance and Insurance, Net |
|
|
20.8 |
% |
|
21.4 |
% |
-60 |
bps |
|
|
|
21.0 |
% |
|
21.2 |
% |
-20 |
bps |
|
Service and Parts |
|
|
43.2 |
% |
|
42.3 |
% |
+90 |
bps |
|
|
|
44.2 |
% |
|
42.9 |
% |
+130 |
bps |
|
Fleet and Wholesale |
|
|
1.3 |
% |
|
0.7 |
% |
+60 |
bps |
|
|
|
1.0 |
% |
|
0.6 |
% |
+40 |
bps |
|
Total |
|
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
100.0 |
% |
|
100.0 |
% |
|
|
|
PENSKE AUTOMOTIVE GROUP, INC. |
|||||||||||||||||||
|
Retail Commercial Truck Operations |
|||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||
|
|
|||||||||||||||||||
|
|
|
Three Months Ended |
|
|
Six Months Ended |
||||||||||||||
|
|
|
June 30, |
|
|
June 30, |
||||||||||||||
|
|
|
2020 |
|
2019 |
|
Change |
|
|
2020 |
|
2019 |
|
Change |
||||||
|
Retail Commercial Truck Units: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Retail |
|
|
2,063 |
|
|
2,647 |
|
(22.1) |
% |
|
|
|
4,874 |
|
|
4,534 |
|
7.5 |
% |
|
Used Retail |
|
|
773 |
|
|
441 |
|
75.3 |
% |
|
|
|
1,471 |
|
|
857 |
|
71.6 |
% |
|
Total |
|
|
2,836 |
|
|
3,088 |
|
(8.2) |
% |
|
|
|
6,345 |
|
|
5,391 |
|
17.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck Revenue: (Amounts in Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
$ |
235.5 |
|
$ |
296.0 |
|
(20.4) |
% |
|
|
$ |
553.8 |
|
$ |
503.4 |
|
10.0 |
% |
|
Used Vehicles |
|
|
36.9 |
|
|
27.6 |
|
33.7 |
% |
|
|
|
71.5 |
|
|
51.7 |
|
38.3 |
% |
|
Finance and Insurance, Net |
|
|
3.2 |
|
|
2.9 |
|
10.3 |
% |
|
|
|
6.4 |
|
|
5.9 |
|
8.5 |
% |
|
Service and Parts |
|
|
111.6 |
|
|
94.6 |
|
18.0 |
% |
|
|
|
236.0 |
|
|
186.1 |
|
26.8 |
% |
|
Wholesale and Other |
|
|
12.0 |
|
|
5.7 |
|
110.5 |
% |
|
|
|
22.9 |
|
|
12.0 |
|
90.8 |
% |
|
Total Revenue |
|
$ |
399.2 |
|
$ |
426.8 |
|
(6.5) |
% |
|
|
$ |
890.6 |
|
$ |
759.1 |
|
17.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck Gross Profit: (Amounts in Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
$ |
9.6 |
|
$ |
11.8 |
|
(18.6) |
% |
|
|
$ |
22.1 |
|
$ |
22.0 |
|
0.5 |
% |
|
Used Vehicles |
|
|
(2.9) |
|
|
2.9 |
|
(200.0) |
% |
|
|
|
(5.3) |
|
|
5.6 |
|
(194.6) |
% |
|
Finance and Insurance, Net |
|
|
3.2 |
|
|
2.9 |
|
10.3 |
% |
|
|
|
6.4 |
|
|
5.9 |
|
8.5 |
% |
|
Service and Parts |
|
|
49.2 |
|
|
37.3 |
|
31.9 |
% |
|
|
|
102.5 |
|
|
73.4 |
|
39.6 |
% |
|
Wholesale and Other |
|
|
1.1 |
|
|
3.6 |
|
(69.4) |
|
|
|
|
3.3 |
|
|
6.0 |
|
(45.0) |
|
|
Total Gross Profit |
|
$ |
60.2 |
|
$ |
58.5 |
|
2.9 |
% |
|
|
$ |
129.0 |
|
$ |
112.9 |
|
14.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck Revenue Per Vehicle Retailed: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
$ |
114,176 |
|
$ |
111,818 |
|
2.1 |
% |
|
|
$ |
113,621 |
|
$ |
111,014 |
|
2.3 |
% |
|
Used Vehicles |
|
|
47,721 |
|
|
62,693 |
|
(23.9) |
% |
|
|
|
48,622 |
|
|
60,430 |
|
(19.5) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck Gross Profit Per Vehicle Retailed: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
$ |
4,640 |
|
$ |
4,461 |
|
4.0 |
% |
|
|
$ |
4,534 |
|
$ |
4,848 |
|
(6.5) |
% |
|
Used Vehicles |
|
|
(3,731) |
|
|
6,575 |
|
(156.7) |
% |
|
|
|
(3,626) |
|
|
6,566 |
|
(155.2) |
% |
|
Finance and Insurance |
|
|
1,134 |
|
|
926 |
|
22.5 |
% |
|
|
|
1,008 |
|
|
1,090 |
|
(7.5) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck Gross Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
|
4.1 |
% |
|
4.0 |
% |
+10 |
bps |
|
|
|
4.0 |
% |
|
4.4 |
% |
-40 |
bps |
|
Used Vehicles |
|
|
(7.9) |
% |
|
10.5 |
% |
-1,840 |
bps |
|
|
|
(7.4) |
% |
|
10.8 |
% |
-1,820 |
bps |
|
Service and Parts |
|
|
44.1 |
% |
|
39.4 |
% |
+470 |
bps |
|
|
|
43.4 |
% |
|
39.4 |
% |
+400 |
bps |
|
Total Gross Margin |
|
|
15.1 |
% |
|
13.7 |
% |
+140 |
bps |
|
|
|
14.5 |
% |
|
14.9 |
% |
-40 |
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck Revenue Mix Percentages: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
|
59.0 |
% |
|
69.4 |
% |
-1,040 |
bps |
|
|
|
62.2 |
% |
|
66.3 |
% |
-410 |
bps |
|
Used Vehicles |
|
|
9.2 |
% |
|
6.5 |
% |
+270 |
bps |
|
|
|
8.0 |
% |
|
6.8 |
% |
+120 |
bps |
|
Finance and Insurance, Net |
|
|
0.8 |
% |
|
0.7 |
% |
+10 |
bps |
|
|
|
0.7 |
% |
|
0.8 |
% |
-10 |
bps |
|
Service and Parts |
|
|
28.0 |
% |
|
22.2 |
% |
+580 |
bps |
|
|
|
26.5 |
% |
|
24.5 |
% |
+200 |
bps |
|
Wholesale and Other |
|
|
3.0 |
% |
|
1.2 |
% |
+180 |
bps |
|
|
|
2.6 |
% |
|
1.6 |
% |
+100 |
bps |
|
Total |
|
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck Gross Profit Mix Percentages: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
|
15.9 |
% |
|
20.2 |
% |
-430 |
bps |
|
|
|
17.1 |
% |
|
19.5 |
% |
-240 |
bps |
|
Used Vehicles |
|
|
(4.8) |
% |
|
5.0 |
% |
-980 |
bps |
|
|
|
(4.1) |
% |
|
5.0 |
% |
-910 |
bps |
|
Finance and Insurance, Net |
|
|
5.3 |
% |
|
5.0 |
% |
+30 |
bps |
|
|
|
5.0 |
% |
|
5.2 |
% |
-20 |
bps |
|
Service and Parts |
|
|
81.7 |
% |
|
63.8 |
% |
+1,790 |
bps |
|
|
|
79.5 |
% |
|
65.0 |
% |
+1,450 |
bps |
|
Wholesale and Other |
|
|
1.9 |
% |
|
6.0 |
% |
-410 |
bps |
|
|
|
2.5 |
% |
|
5.3 |
% |
-280 |
bps |
|
Total |
|
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
100.0 |
% |
|
100.0 |
% |
|
|
|
PENSKE AUTOMOTIVE GROUP, INC. |
|||||||||||||||||||
|
Retail Commercial Truck Operations Same-Store |
|||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||
|
|
|||||||||||||||||||
|
|
|
Three Months Ended |
|
|
Six Months Ended |
||||||||||||||
|
|
|
June 30, |
|
|
June 30, |
||||||||||||||
|
|
|
2020 |
|
2019 |
|
Change |
|
|
2020 |
|
2019 |
|
Change |
||||||
|
Retail Commercial Truck Same-Store Units: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Retail |
|
|
1,265 |
|
|
2,647 |
|
(52.2) |
% |
|
|
|
3,110 |
|
|
4,534 |
|
(31.4) |
% |
|
Used Retail |
|
|
503 |
|
|
441 |
|
14.1 |
% |
|
|
|
1,015 |
|
|
857 |
|
18.4 |
% |
|
Total |
|
|
1,768 |
|
|
3,088 |
|
(42.7) |
% |
|
|
|
4,125 |
|
|
5,391 |
|
(23.5) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck Same-Store Revenue: (Amounts in Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
$ |
149.1 |
|
$ |
296.0 |
|
(49.6) |
% |
|
|
$ |
355.1 |
|
$ |
503.4 |
|
(29.5) |
% |
|
Used Vehicles |
|
|
24.1 |
|
|
27.6 |
|
(12.7) |
% |
|
|
|
49.2 |
|
|
51.7 |
|
(4.8) |
% |
|
Finance and Insurance, Net |
|
|
2.5 |
|
|
2.9 |
|
(13.8) |
% |
|
|
|
4.8 |
|
|
5.9 |
|
(18.6) |
% |
|
Service and Parts |
|
|
76.0 |
|
|
94.6 |
|
(19.7) |
% |
|
|
|
162.1 |
|
|
185.8 |
|
(12.8) |
% |
|
Wholesale and Other |
|
|
3.5 |
|
|
5.7 |
|
(38.6) |
% |
|
|
|
10.1 |
|
|
11.9 |
|
(15.1) |
% |
|
Total Revenue |
|
$ |
255.2 |
|
$ |
426.8 |
|
(40.2) |
% |
|
|
$ |
581.3 |
|
$ |
758.7 |
|
(23.4) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck Same-Store Gross Profit: (Amounts in Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
$ |
5.9 |
|
$ |
11.8 |
|
(50.0) |
% |
|
|
$ |
13.5 |
|
$ |
22.0 |
|
(38.6) |
% |
|
Used Vehicles |
|
|
(2.1) |
|
|
2.9 |
|
(172.4) |
% |
|
|
|
(3.0) |
|
|
5.6 |
|
(153.6) |
% |
|
Finance and Insurance, Net |
|
|
2.5 |
|
|
2.9 |
|
(13.8) |
% |
|
|
|
4.8 |
|
|
5.9 |
|
(18.6) |
% |
|
Service and Parts |
|
|
30.9 |
|
|
37.3 |
|
(17.2) |
% |
|
|
|
65.4 |
|
|
73.3 |
|
(10.8) |
% |
|
Wholesale and Other |
|
|
1.9 |
|
|
3.5 |
|
(45.7) |
% |
|
|
|
4.5 |
|
|
5.8 |
|
(22.4) |
% |
|
Total Gross Profit |
|
$ |
39.1 |
|
$ |
58.4 |
|
(33.0) |
% |
|
|
$ |
85.2 |
|
$ |
112.6 |
|
(24.3) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck Same-Store Revenue Per Vehicle Retailed: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
$ |
117,892 |
|
$ |
111,818 |
|
5.4 |
% |
|
|
$ |
114,195 |
|
$ |
111,014 |
|
2.9 |
% |
|
Used Vehicles |
|
|
47,938 |
|
|
62,693 |
|
(23.5) |
% |
|
|
|
48,482 |
|
|
60,430 |
|
(19.8) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck Same-Store Gross Profit Per Vehicle Retailed: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
$ |
4,671 |
|
$ |
4,461 |
|
4.7 |
% |
|
|
$ |
4,342 |
|
$ |
4,848 |
|
(10.4) |
% |
|
Used Vehicles |
|
|
(4,235) |
|
|
6,575 |
|
(164.4) |
% |
|
|
|
(2,910) |
|
|
6,566 |
|
(144.3) |
% |
|
Finance and Insurance |
|
|
1,387 |
|
|
926 |
|
49.8 |
% |
|
|
|
1,166 |
|
|
1,090 |
|
7.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck Same-Store Gross Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
|
4.0 |
% |
|
4.0 |
% |
--- |
bps |
|
|
|
3.8 |
% |
|
4.4 |
% |
-60 |
bps |
|
Used Vehicles |
|
|
(8.7) |
% |
|
10.5 |
% |
-1,920 |
bps |
|
|
|
(6.1) |
% |
|
10.8 |
% |
-1,690 |
bps |
|
Service and Parts |
|
|
40.7 |
% |
|
39.4 |
% |
+130 |
bps |
|
|
|
40.3 |
% |
|
39.5 |
% |
+80 |
bps |
|
Total Gross Margin |
|
|
15.3 |
% |
|
13.7 |
% |
+160 |
bps |
|
|
|
14.7 |
% |
|
14.8 |
% |
-10 |
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck Revenue Mix Percentages: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
|
58.4 |
% |
|
69.4 |
% |
-1,100 |
bps |
|
|
|
61.1 |
% |
|
66.4 |
% |
-530 |
bps |
|
Used Vehicles |
|
|
9.4 |
% |
|
6.5 |
% |
+290 |
bps |
|
|
|
8.5 |
% |
|
6.8 |
% |
+170 |
bps |
|
Finance and Insurance, Net |
|
|
1.0 |
% |
|
0.7 |
% |
+30 |
bps |
|
|
|
0.8 |
% |
|
0.8 |
% |
--- |
bps |
|
Service and Parts |
|
|
29.8 |
% |
|
22.2 |
% |
+760 |
bps |
|
|
|
27.9 |
% |
|
24.5 |
% |
+340 |
bps |
|
Wholesale and Other |
|
|
1.4 |
% |
|
1.2 |
% |
+20 |
bps |
|
|
|
1.7 |
% |
|
1.5 |
% |
+20 |
bps |
|
Total |
|
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck Gross Profit Mix Percentages: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles |
|
|
15.1 |
% |
|
20.2 |
% |
-510 |
bps |
|
|
|
15.8 |
% |
|
19.5 |
% |
-370 |
bps |
|
Used Vehicles |
|
|
(5.4) |
% |
|
5.0 |
% |
-1,040 |
bps |
|
|
|
(3.5) |
% |
|
5.0 |
% |
-850 |
bps |
|
Finance and Insurance, Net |
|
|
6.4 |
% |
|
5.0 |
% |
+140 |
bps |
|
|
|
5.6 |
% |
|
5.2 |
% |
+40 |
bps |
|
Service and Parts |
|
|
79.0 |
% |
|
63.9 |
% |
+1,510 |
bps |
|
|
|
76.8 |
% |
|
65.1 |
% |
+1,170 |
bps |
|
Wholesale and Other |
|
|
4.9 |
% |
|
5.9 |
% |
-100 |
bps |
|
|
|
5.3 |
% |
|
5.2 |
% |
+10 |
bps |
|
Total |
|
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
100.0 |
% |
|
100.0 |
% |
|
|
|
PENSKE AUTOMOTIVE GROUP, INC. |
||||||||||||
|
Consolidated Non-GAAP Reconciliations |
||||||||||||
|
(Unaudited) |
||||||||||||
|
|
||||||||||||
|
The following tables reconcile reported net income to earnings before interest, taxes, depreciation, and amortization ("EBITDA") for the three and six months ended June 30, 2020 and 2019: |
||||||||||||
|
|
||||||||||||
|
|
||||||||||||
|
|
|
Three Months Ended |
|
|
|
|
|
|
||||
|
|
|
June 30, |
|
2020 vs. 2019 |
||||||||
|
(Amounts in Millions) |
|
2020 |
|
2019 |
|
Change |
|
% Change |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
44.8 |
|
$ |
118.5 |
|
$ |
(73.7) |
|
(62.2) |
% |
|
Add: Depreciation |
|
|
27.9 |
|
|
27.1 |
|
|
0.8 |
|
3.0 |
% |
|
Other Interest Expense |
|
|
28.4 |
|
|
30.4 |
|
|
(2.0) |
|
(6.6) |
% |
|
Income Taxes |
|
|
16.5 |
|
|
41.5 |
|
|
(25.0) |
|
(60.2) |
% |
|
Income from Discontinued Operations, net of tax |
|
|
(0.1) |
|
|
(0.1) |
|
|
— |
|
nm |
|
|
EBITDA |
|
$ |
117.5 |
|
$ |
217.4 |
|
$ |
(99.9) |
|
(46.0) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Six Months Ended |
|
|
|
|
|
|
||||
|
|
|
June 30, |
|
2020 vs. 2019 |
||||||||
|
(Amounts in Millions) |
|
2020 |
|
2019 |
|
Change |
|
% Change |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
96.3 |
|
$ |
217.7 |
|
$ |
(121.4) |
|
(55.8) |
% |
|
Add: Depreciation |
|
|
56.4 |
|
|
53.5 |
|
|
2.9 |
|
5.4 |
% |
|
Other Interest Expense |
|
|
60.1 |
|
|
60.3 |
|
|
(0.2) |
|
(0.3) |
% |
|
Income Taxes |
|
|
36.6 |
|
|
76.2 |
|
|
(39.6) |
|
(52.0) |
% |
|
Income from Discontinued Operations, net of tax |
|
|
(0.2) |
|
|
(0.2) |
|
|
— |
|
nm |
|
|
EBITDA |
|
$ |
249.2 |
|
$ |
407.5 |
|
$ |
(158.3) |
|
(38.8) |
% |
|
|
|
|
|
|
|
nm – not meaningful |
|
|
The following table reconciles reported cash flow from operations to free cash flow for the six months ended June 30, 2020: |
|
|
|||
|
|
|
Six Months Ended |
|
|
|
|
June 30, |
|
|
(Amounts in Millions) |
|
2020 |
|
|
|
|
|
|
|
Net cash provided by continuing operating activities |
|
$ |
784.4 |
|
Add: Proceeds from sale of dealerships |
|
|
10.3 |
|
Add: Proceeds from sale of equipment and improvements |
|
|
19.8 |
|
Less: Net repayments of floor plan notes payable — non-trade |
|
|
(309.9) |
|
Less: Purchase of equipment and improvements |
|
|
(76.8) |
|
Free Cash Flow |
|
$ |
427.8 |
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SOURCE Penske Automotive Group, Inc.
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