-- Best Quarter and Six Months in Company History
-- Selling, General & Administrative Expense Leverage of
110 Basis Points
BLOOMFIELD HILLS, Michigan,
July 29, 2015 /PRNewswire/
--
|
Second Quarter
2015
|
Six Months
2015
|
- Revenue Increases 12.2% to $4.9 Billion
|
- Revenue Increases 11.8% to $9.4 Billion
|
- Same-store Retail Revenue Increases 5.6%,
excluding foreign exchange 9.8%
|
- Same-store Retail Revenue Increases 5.2%,
excluding foreign exchange 9.5%
|
- Income from Continuing Operations
Attributable to Common Shareholders Increases 17.3% to $94.4
Million
|
- Income from Continuing Operations
Attributable to Common Shareholders Increases 15.6% to $170.8
Million
|
- Earnings Per Share from Continuing Operations
Attributable to Common Shareholders Increases 18.0% to $1.05
|
- Earnings Per Share from Continuing Operations
Attributable to Common Shareholders Increases 16.0% to $1.89
|
- EBITDA Increases 17.9% to $179.3 Million
|
- EBITDA Increases 16.7% to $330.1 Million
|
Penske Automotive Group, Inc. (NYSE: PAG), an international
transportation services company, announced today that second
quarter 2015 income from continuing operations attributable to
common shareholders increased 17.3% to $94.4
million, and related earnings per share increased 18.0% to
$1.05 when compared to the same
period last year. Total revenue increased 12.2% to $4.9 billion. Excluding foreign
exchange, total revenue increased 17.0%. Same-store
retail revenue increased 5.6% in the second quarter, or 9.8% when
excluding foreign exchange. Gross profit improved 11.4% to
$729.6 million, while operating
income increased 17.2% to $159.1
million.
"We just completed the best quarter and six-month period in the
history of our company," said Chairman Roger S. Penske. "The performance of our
business continues to demonstrate the flexibility and resiliency of
the company's brand mix and business model. The record second
quarter results were driven by a 7.5% increase in retail automotive
unit sales, a 50-basis point increase in automotive retail service
and parts gross margin and a reduction of 110 basis points in
selling, general and administrative expenses as a percent of gross
profit."
Automotive Retail Highlights of the Second Quarter
- Total Retail Unit Sales Increased 7.5% to 108,277
- +3.3% in the United States;
+16.5% Internationally
- New unit retail sales +6.3%
- Used unit retail sales +8.8%
- Same-store Retail Revenue Increased 5.6%
- New +4.2%; Used +8.2%; Finance & Insurance +8.3%; Service
and Parts +4.3%
- +4.2% in the United States;
+7.8% Internationally
- Excluding f/x, same-store retail revenue increased 9.8%
- Average Transaction Price Per Unit
- New $39,834; -1.3%
- Used $27,771; -0.2%
- Average Gross Profit Per Unit
- New $2,999, -$123/unit; Gross Margin 7.5%, -20 basis
points
- Excluding f/x $3,128/unit,
+$6/unit, Gross Margin 7.6%, -10 basis points
- Used $1,777, -$197/unit; Gross Margin 6.4%, -70 basis points
- Excluding f/x $1,861/unit,
-$113/unit, Gross Margin 6.4%, -70
basis points
- Finance & Insurance $1,125/unit, +$15/unit
- Excluding f/x $1,162/unit,
+$52/unit
Note: f/x = foreign exchange
For the six months ended June 30,
2015, total revenue increased 11.8% to $9.4 billion. The revenue increase was
driven by a 7.1% increase in retail automotive unit sales,
including 6.1% on a same-store basis. Income from continuing
operations attributable to common shareholders increased 15.6% to
$170.8 million and related earnings
per share increased 16.0% to $1.89
when compared to the same period last year.
U.S. Commercial Truck Operations
During 2015, the company acquired two commercial truck
dealerships which are expected to contribute estimated annualized
revenues of approximately $200
million. For the three and six months ended
June 30, 2015, our U.S. commercial
truck dealerships ("Premier Truck Group") generated $241.9 million and $434.6
million of revenue, and $38.3
million and $71.1 million of
gross profit, respectively, principally through the retail sale of
new/used medium and heavy-duty trucks and service/ parts
sales. Service and parts gross profit represents
approximately 72% of total gross profit for both periods.
Share Repurchases
For the six months ended June 30,
2015, the company has acquired or repurchased 439,383 shares
of common stock for approximately $22.0
million, or approximately $50.07 per share. As of June 30, 2015, the company has a remaining share
repurchase authorization of $136.0
million.
Conference Call
Penske Automotive will host a conference call discussing
financial results relating to the second quarter of 2015 on
July 29, 2015, at 2:00
p.m. Eastern Daylight Time. To listen to the conference
call, participants must dial (800) 230-1085 [International,
please dial (612) 288-0337]. The call will also be
simultaneously broadcast over the Internet through the Investor
Relations section of the Penske Automotive Group website.
Additionally, an investor presentation relating to the second
quarter 2015 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 and Western Europe, and distributes commercial
vehicles, diesel engines, gas engines, power systems and related
parts and services principally in Australia and New
Zealand. PAG employs more than 22,000 people worldwide and
is a member of the Fortune 500 and Russell 2000. For additional
information, visit the company's website at
www.penskeautomotive.com.
Non-GAAP Financial Measures
This release contains certain non-GAAP financial measures as
defined under SEC rules, such as earnings before interest, taxes,
depreciation and amortization ("EBITDA") and earnings before
interest, taxes, depreciation, amortization and rent expense
("EBITDAR"). 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 future sales potential. Actual results may
vary materially because of risks and uncertainties that are
difficult to predict. These risks and uncertainties include, among
others: economic conditions generally, conditions in the credit
markets and changes in interest rates and foreign currency exchange
rates, adverse conditions affecting a particular manufacturer,
including the adverse impact to the vehicle and parts supply chain
due to natural disasters 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's business, markets,
conditions and other uncertainties, which could affect Penske
Automotive's future performance. These risks and uncertainties are
addressed in Penske Automotive's Form 10-K for the year ended
December 31, 2014, and its other
filings with the Securities and Exchange Commission ("SEC"). This
press release speaks only as of its date, and Penske Automotive
disclaims any duty to update the information herein.
Find a vehicle: http://www.penskecars.com
Engage Penske Automotive:
http://www.penskesocial.com
Like Penske Automotive on Facebook:
https://facebook.com/PenskeCars
Follow Penske Automotive on Twitter:
https://twitter.com/Penskecarscorp
Visit Penske Automotive on YouTube:
http://www.youtube.com/penskecars
Inquiries should contact:
|
J.D. Carlson
Executive Vice President and
Chief Financial
Officer
Penske Automotive
Group, Inc.
248-648-2810
jcarlson@penskeautomotive.com
|
Anthony R. Pordon
Executive Vice President Investor Relations and Corporate
Development
Penske Automotive
Group, Inc.
248-648-2540
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,
|
|
2015
|
|
2014
|
|
Increase/
(Decrease)
|
|
2015
|
|
2014
|
|
Increase/
(Decrease)
|
|
Revenue
|
$ 4,904.4
|
|
$ 4,370.5
|
|
12.2%
|
|
$ 9,375.5
|
|
$ 8,385.7
|
|
11.8%
|
|
Cost of
Sales
|
4,174.8
|
|
3,715.7
|
|
12.4%
|
|
7,957.2
|
|
7,116.9
|
|
11.8%
|
|
Gross
Profit
|
$ 729.6
|
|
$ 654.8
|
|
11.4%
|
|
$ 1,418.3
|
|
$ 1,268.8
|
|
11.8%
|
|
SG&A
Expenses
|
551.3
|
|
502.0
|
|
9.8%
|
|
1,085.8
|
|
979.2
|
|
10.9%
|
|
Depreciation
|
19.2
|
|
17.0
|
|
12.9%
|
|
37.8
|
|
33.1
|
|
14.2%
|
|
Operating Income
|
$ 159.1
|
|
$ 135.8
|
|
17.2%
|
|
$ 294.7
|
|
$ 256.5
|
|
14.9%
|
|
Floor Plan Interest
Expense
|
(11.0)
|
|
(11.6)
|
|
-5.2%
|
|
(21.1)
|
|
(22.7)
|
|
-7.0%
|
|
Other Interest
Expense
|
(16.4)
|
|
(12.4)
|
|
32.3%
|
|
(32.7)
|
|
(24.8)
|
|
31.9%
|
|
Equity in Earnings of
Affiliates
|
12.0
|
|
10.9
|
|
10.1%
|
|
18.7
|
|
16.0
|
|
16.9%
|
|
Income from Continuing Operations Before Income Taxes
|
$ 143.7
|
|
$ 122.7
|
|
17.1%
|
|
$ 259.6
|
|
$ 225.0
|
|
15.4%
|
|
Income
Taxes
|
(47.6)
|
|
(41.2)
|
|
15.5%
|
|
(86.4)
|
|
(75.9)
|
|
13.8%
|
|
Income from Continuing Operations
|
$ 96.1
|
|
$ 81.5
|
|
17.9%
|
|
$ 173.2
|
|
$ 149.1
|
|
16.2%
|
|
Loss from
Discontinued Operations, net of tax
|
(0.4)
|
|
(7.6)
|
|
nm
|
|
(1.6)
|
|
(7.3)
|
|
nm
|
|
Net Income
|
$ 95.7
|
|
$ 73.9
|
|
29.5%
|
|
$ 171.6
|
|
$ 141.8
|
|
21.0%
|
|
Less: Income
Attributable to Non-Controlling Interests
|
1.7
|
|
1.0
|
|
70.0%
|
|
2.4
|
|
1.4
|
|
71.4%
|
|
Net Income Attributable to Common Shareholders
|
$ 94.0
|
|
$ 72.9
|
|
28.9%
|
|
$ 169.2
|
|
$ 140.4
|
|
20.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts Attributable
to Common Shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Income from
Continuing Operations
|
$ 96.1
|
|
$ 81.5
|
|
17.9%
|
|
$ 173.2
|
|
$ 149.1
|
|
16.2%
|
|
Less: Income
Attributable to Non-Controlling Interests
|
1.7
|
|
1.0
|
|
70.0%
|
|
2.4
|
|
1.4
|
|
71.4%
|
|
Income from Continuing
Operations, net of tax
|
$ 94.4
|
|
$ 80.5
|
|
17.3%
|
|
$ 170.8
|
|
$ 147.7
|
|
15.6%
|
|
Loss from Discontinued
Operations, net of tax
|
(0.4)
|
|
(7.6)
|
|
nm
|
|
(1.6)
|
|
(7.3)
|
|
nm
|
|
Net Income
Attributable to Common Shareholders
|
$ 94.0
|
|
$ 72.9
|
|
28.9%
|
|
$ 169.2
|
|
$ 140.4
|
|
20.5%
|
|
Income from Continuing
Operations Per Share
|
$ 1.05
|
|
$ 0.89
|
|
18.0%
|
|
$ 1.89
|
|
$ 1.63
|
|
16.0%
|
|
Income Per
Share
|
$ 1.04
|
|
$ 0.81
|
|
28.4%
|
|
$ 1.87
|
|
$ 1.55
|
|
20.6%
|
|
Weighted Average
Shares Outstanding
|
90.2
|
|
90.4
|
|
-0.2%
|
|
90.3
|
|
90.4
|
|
-0.1%
|
nm – not meaningful
|
PENSKE AUTOMOTIVE
GROUP, INC.
Consolidated
Condensed Balance Sheets
(Amounts In
Millions)
(Unaudited)
|
|
|
|
June
30,
|
|
December
31,
|
|
2015
|
|
2014
|
|
Assets:
|
|
|
|
|
Cash and Cash
Equivalents
|
$
36.7
|
|
$
36.3
|
|
Accounts Receivable,
Net
|
738.8
|
|
701.4
|
|
Inventories
|
3,055.4
|
|
2,819.2
|
|
Other Current
Assets
|
107.0
|
|
124.7
|
|
Assets Held for
Sale
|
45.7
|
|
186.6
|
|
Total Current
Assets
|
3,983.6
|
|
3,868.2
|
|
Property and
Equipment, Net
|
1,378.3
|
|
1,328.8
|
|
Intangibles
|
1,684.0
|
|
1,652.0
|
|
Other Long-Term
Assets
|
388.0
|
|
379.2
|
|
Total
Assets
|
$ 7,433.9
|
|
$ 7,228.2
|
|
|
|
|
|
Liabilities and
Equity:
|
|
|
|
|
Floor Plan Notes
Payable
|
$ 2,004.9
|
|
$ 1,812.6
|
|
Floor Plan Notes
Payable – Non-Trade
|
1,042.8
|
|
920.5
|
|
Accounts
Payable
|
502.1
|
|
417.6
|
|
Accrued
Expenses
|
329.3
|
|
310.3
|
|
Current Portion
Long-Term Debt
|
31.2
|
|
36.6
|
|
Liabilities Held for
Sale
|
29.9
|
|
132.7
|
|
Total Current
Liabilities
|
3,940.2
|
|
3,630.3
|
|
Long-Term
Debt
|
1,130.8
|
|
1,316.0
|
|
Other Long-Term
Liabilities
|
583.9
|
|
600.7
|
|
Total
Liabilities
|
5,654.9
|
|
5,547.0
|
|
Equity
|
1,779.0
|
|
1,681.2
|
|
Total Liabilities and
Equity
|
$
7,433.9
|
|
$ 7,228.2
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
Consolidated
Operations
Selected
Data
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Geographic Revenue
Mix:
|
|
|
|
|
|
|
|
|
U.S.
|
62%
|
|
60%
|
|
61%
|
|
59%
|
|
U.K.
|
34%
|
|
35%
|
|
35%
|
|
37%
|
|
Other
International
|
4%
|
|
5%
|
|
4%
|
|
4%
|
|
Total
|
100.0%
|
|
100.0%
|
|
100.0%
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
Revenue: (Amounts in
Millions)
|
|
|
|
|
|
|
|
|
Retail
Automotive
|
$ 4,538.6
|
|
$ 4,256.5
|
|
$ 8,713.6
|
|
$ 8,175.7
|
|
U.S. Commercial
Trucks
|
241.9
|
|
--
|
|
434.6
|
|
--
|
|
Commercial Vehicles
Australia/Power Systems and Other
|
123.9
|
|
114.0
|
|
227.3
|
|
210.0
|
|
Total
|
$ 4,904.4
|
|
$ 4,370.5
|
|
$ 9,375.5
|
|
$ 8,385.7
|
|
|
|
|
|
|
|
|
|
Gross Profit:
(Amounts in Millions)
|
|
|
|
|
|
|
|
|
Retail
Automotive
|
$ 660.9
|
|
$ 636.2
|
|
$ 1,289.0
|
|
$ 1,233.9
|
|
U.S. Commercial
Trucks
|
38.3
|
|
--
|
|
71.1
|
|
--
|
|
Commercial Vehicles
Australia/Power Systems and Other
|
30.4
|
|
18.6
|
|
58.2
|
|
34.9
|
|
Total
|
$ 729.6
|
|
$ 654.8
|
|
$ 1,418.3
|
|
$ 1,268.8
|
|
|
|
|
|
|
|
|
|
Gross
Margin:
|
|
|
|
|
|
|
|
|
Retail
Automotive
|
14.6%
|
|
14.9%
|
|
14.8%
|
|
15.1%
|
|
U.S. Commercial
Trucks
|
15.8%
|
|
--
|
|
16.4%
|
|
--
|
|
Commercial Vehicles
Australia/Power Systems and Other
|
24.5%
|
|
16.3%
|
|
25.6%
|
|
16.6%
|
|
Total
|
14.9%
|
|
15.0%
|
|
15.1%
|
|
15.1%
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
Consolidated
Operations
Selected
Data
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2015
|
|
2014
|
|
Increase/
(Decrease)
|
|
2015
|
|
2014
|
|
Increase/
(Decrease)
|
|
Operating Items as a
Percentage of Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
14.9%
|
|
15.0%
|
|
-10 bps
|
|
15.1%
|
|
15.1%
|
|
--
|
|
Selling, General and
Administrative Expenses
|
11.2%
|
|
11.5%
|
|
-30 bps
|
|
11.6%
|
|
11.7%
|
|
-10 bps
|
|
Operating
Income
|
3.2%
|
|
3.1%
|
|
10 bps
|
|
3.1%
|
|
3.1%
|
|
--
|
|
Inc. From Cont. Ops.
Before Inc. Taxes
|
2.9%
|
|
2.8%
|
|
10 bps
|
|
2.8%
|
|
2.7%
|
|
10 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Items as a
Percentage of Total Gross Profit:
|
|
|
|
|
|
|
|
|
|
|
|
Selling, General and
Administrative Expenses
|
75.6%
|
|
76.7%
|
|
-110 bps
|
|
76.6%
|
|
77.2%
|
|
-60 bps
|
|
Operating
Income
|
21.8%
|
|
20.7%
|
|
110 bps
|
|
20.8%
|
|
20.2%
|
|
60 bps
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2015
|
|
2014
|
|
Increase/
(Decrease)
|
|
2015
|
|
2014
|
|
Increase/
(Decrease)
|
|
(Amounts in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA*
|
$ 179.3
|
|
$ 152.1
|
|
17.9%
|
|
$ 330.1
|
|
$ 282.9
|
|
16.7%
|
|
Rent
Expense
|
$
48.9
|
|
$
48.0
|
|
1.9%
|
|
$
98.8
|
|
$
94.1
|
|
5.0%
|
|
Floorplan
Credits
|
$
8.3
|
|
$
8.0
|
|
3.8%
|
|
$
15.0
|
|
$
14.1
|
|
6.4%
|
* See the following Non-GAAP reconciliation table.
|
PENSKE AUTOMOTIVE
GROUP, INC.
Retail Automotive
Operations
Selected
Data
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Retail Automotive
Units:
|
|
|
|
|
|
|
|
|
New Retail
|
58,758
|
|
55,268
|
|
112,051
|
|
105,262
|
|
Used Retail
|
49,519
|
|
45,497
|
|
97,576
|
|
90,525
|
|
Total
|
108,277
|
|
100,765
|
|
209,627
|
|
195,787
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Revenue: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
New
Vehicles
|
$
2,340.5
|
|
$
2,230.3
|
|
$
4,476.8
|
|
$
4,247.6
|
|
Used
Vehicles
|
1,375.2
|
|
1,265.6
|
|
2,651.3
|
|
2,460.8
|
|
Finance and Insurance,
Net
|
121.9
|
|
111.9
|
|
233.0
|
|
216.4
|
|
Service and
Parts
|
454.7
|
|
433.7
|
|
892.0
|
|
849.1
|
|
Fleet and
Wholesale
|
246.3
|
|
215.0
|
|
460.5
|
|
401.8
|
|
Total
Revenue
|
$
4,538.6
|
|
$
4,256.5
|
|
$
8,713.6
|
|
$
8,175.7
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Gross Profit: (Amounts in Millions)
|
|
|
|
|
|
|
|
New
Vehicles
|
$
176.2
|
|
$
172.6
|
|
$
343.8
|
|
$
329.0
|
|
Used
Vehicles
|
88.0
|
|
89.8
|
|
172.5
|
|
176.3
|
|
Finance and Insurance,
Net
|
121.9
|
|
111.9
|
|
233.0
|
|
216.4
|
|
Service and
Parts
|
273.6
|
|
258.9
|
|
533.9
|
|
504.9
|
|
Fleet and
Wholesale
|
1.2
|
|
3.0
|
|
5.8
|
|
7.3
|
|
Total Gross
Profit
|
$
660.9
|
|
$
636.2
|
|
$
1,289.0
|
|
$
1,233.9
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Revenue Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
New
Vehicles
|
$
39,834
|
|
$
40,354
|
|
$
39,954
|
|
$
40,352
|
|
Used
Vehicles
|
27,771
|
|
27,818
|
|
27,172
|
|
27,184
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Gross Profit Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
New
Vehicles
|
$
2,999
|
|
$
3,122
|
|
$
3,069
|
|
$
3,125
|
|
Used
Vehicles
|
1,777
|
|
1,974
|
|
1,768
|
|
1,948
|
|
Finance &
Insurance
|
1,125
|
|
1,110
|
|
1,111
|
|
1,105
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
Retail Automotive
Operations
Selected
Data
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Retail Automotive
Revenue Mix Percentages:
|
|
|
|
|
|
|
|
|
New
Vehicles
|
51.6%
|
|
52.4%
|
|
51.4%
|
|
52.0%
|
|
Used
Vehicles
|
30.3%
|
|
29.7%
|
|
30.4%
|
|
30.1%
|
|
Finance and Insurance,
Net
|
2.7%
|
|
2.6%
|
|
2.7%
|
|
2.6%
|
|
Service and
Parts
|
10.0%
|
|
10.2%
|
|
10.2%
|
|
10.4%
|
|
Fleet and
Wholesale
|
5.4%
|
|
5.1%
|
|
5.3%
|
|
4.9%
|
|
Total
|
100.0%
|
|
100.0%
|
|
100.0%
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Gross Profit Mix Percentages:
|
|
|
|
|
|
|
|
|
New
Vehicles
|
26.7%
|
|
27.1%
|
|
26.7%
|
|
26.7%
|
|
Used
Vehicles
|
13.3%
|
|
14.1%
|
|
13.4%
|
|
14.3%
|
|
Finance and Insurance,
Net
|
18.4%
|
|
17.6%
|
|
18.1%
|
|
17.5%
|
|
Service and
Parts
|
41.4%
|
|
40.7%
|
|
41.4%
|
|
40.9%
|
|
Fleet and
Wholesale
|
0.2%
|
|
0.5%
|
|
0.4%
|
|
0.6%
|
|
Total
|
100.0%
|
|
100.0%
|
|
100.0%
|
|
100.0%
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2015
|
|
2014
|
|
Increase/
(Decrease)
|
|
2015
|
|
2014
|
|
Increase/
(Decrease)
|
|
Retail Automotive
Gross Margin:
|
|
|
|
|
|
|
|
|
|
New
Vehicles
|
7.5%
|
|
7.7%
|
|
-20 bps
|
|
7.7%
|
|
7.7%
|
|
--
|
|
Used
Vehicles
|
6.4%
|
|
7.1%
|
|
-70 bps
|
|
6.5%
|
|
7.2%
|
|
-70 bps
|
|
Service and
Parts
|
60.2%
|
|
59.7%
|
|
50 bps
|
|
59.9%
|
|
59.5%
|
|
40 bps
|
|
Fleet and
Wholesale
|
0.5%
|
|
1.4%
|
|
-90 bps
|
|
1.3%
|
|
1.8%
|
|
-50 bps
|
|
Total Gross
Margin
|
14.6%
|
|
14.9%
|
|
-30 bps
|
|
14.8%
|
|
15.1%
|
|
-30 bps
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
Retail Automotive
Operations
Selected
Data
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Retail Automotive
Revenue Mix:
|
|
|
|
|
|
|
|
|
Premium:
|
|
|
|
|
|
|
|
|
BMW / MINI
|
27%
|
|
26%
|
|
27%
|
|
26%
|
|
Audi
|
13%
|
|
13%
|
|
13%
|
|
14%
|
|
Mercedes-Benz
|
10%
|
|
10%
|
|
10%
|
|
10%
|
|
Land Rover
|
6%
|
|
5%
|
|
7%
|
|
6%
|
|
Porsche
|
5%
|
|
5%
|
|
5%
|
|
5%
|
|
Lexus
|
4%
|
|
4%
|
|
4%
|
|
4%
|
|
Ferrari /
Maserati
|
3%
|
|
3%
|
|
2%
|
|
2%
|
|
Acura
|
1%
|
|
1%
|
|
1%
|
|
1%
|
|
Bentley
|
1%
|
|
2%
|
|
1%
|
|
2%
|
|
Others
|
2%
|
|
2%
|
|
2%
|
|
2%
|
|
Total
Premium
|
72%
|
|
71%
|
|
72%
|
|
72%
|
|
Volume
Non-U.S.:
|
|
|
|
|
|
|
|
|
Toyota
|
12%
|
|
12%
|
|
12%
|
|
11%
|
|
Honda
|
7%
|
|
8%
|
|
7%
|
|
8%
|
|
Volkswagen
|
2%
|
|
2%
|
|
2%
|
|
2%
|
|
Nissan
|
1%
|
|
1%
|
|
1%
|
|
1%
|
|
Others
|
2%
|
|
2%
|
|
2%
|
|
2%
|
|
Total Volume
Non-U.S.
|
24%
|
|
25%
|
|
24%
|
|
24%
|
|
U.S.:
|
|
|
|
|
|
|
|
|
General Motors /
Chrysler / Ford
|
4%
|
|
4%
|
|
4%
|
|
4%
|
|
Total
|
100%
|
|
100%
|
|
100%
|
|
100%
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Geographic Revenue Mix:
|
|
|
|
|
|
|
|
|
U.S.
|
61%
|
|
62%
|
|
61%
|
|
61%
|
|
U.K.
|
37%
|
|
36%
|
|
37%
|
|
37%
|
|
Other
International
|
2%
|
|
2%
|
|
2%
|
|
2%
|
|
Total
|
100.0%
|
|
100.0%
|
|
100.0%
|
|
100.0%
|
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
Retail Automotive
Operations
Same-Store
Selected
Data
(Unaudited)
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Retail Automotive
Same-Store Units:
|
|
|
|
|
|
|
|
|
New Retail
|
58,191
|
|
55,063
|
|
110,123
|
|
104,343
|
|
Used Retail
|
49,063
|
|
45,331
|
|
96,115
|
|
89,994
|
|
Total
|
107,254
|
|
100,394
|
|
206,238
|
|
194,337
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Revenue: (Amounts in Millions)
|
|
|
|
|
|
|
New
Vehicles
|
$
2,317.8
|
|
$
2,224.3
|
|
$
4,385.5
|
|
$
4,203.1
|
|
Used
Vehicles
|
1,365.7
|
|
1,262.7
|
|
2,615.1
|
|
2,447.2
|
|
Finance and Insurance,
Net
|
120.9
|
|
111.6
|
|
229.9
|
|
215.1
|
|
Service and
Parts
|
451.5
|
|
432.9
|
|
873.6
|
|
841.1
|
|
Fleet and
Wholesale
|
243.5
|
|
214.4
|
|
452.9
|
|
400.7
|
|
Total
Revenue
|
$
4,499.4
|
|
$
4,245.9
|
|
$
8,557.0
|
|
$
8,107.2
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Gross Profit: (Amounts in Millions)
|
|
|
|
|
|
New
Vehicles
|
$
174.1
|
|
$
172.1
|
|
$
337.4
|
|
$
325.9
|
|
Used
Vehicles
|
87.4
|
|
89.7
|
|
170.4
|
|
175.4
|
|
Finance and Insurance,
Net
|
120.9
|
|
111.6
|
|
229.9
|
|
215.1
|
|
Service and
Parts
|
271.7
|
|
258.3
|
|
523.8
|
|
500.6
|
|
Fleet and
Wholesale
|
1.1
|
|
3.0
|
|
5.7
|
|
7.2
|
|
Total Gross
Profit
|
$
655.2
|
|
$
634.7
|
|
$
1,267.2
|
|
$
1,224.2
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Revenue Per Vehicle Retailed:
|
|
|
|
|
|
|
New
Vehicles
|
$
39,830
|
|
$
40,395
|
|
$
39,823
|
|
$
40,281
|
|
Used
Vehicles
|
27,835
|
|
27,855
|
|
27,208
|
|
27,193
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Gross Profit Per Vehicle Retailed:
|
|
|
|
|
|
New
Vehicles
|
$
2,992
|
|
$
3,125
|
|
$
3,063
|
|
$
3,123
|
|
Used
Vehicles
|
1,780
|
|
1,978
|
|
1,773
|
|
1,949
|
|
Finance &
Insurance
|
1,127
|
|
1,112
|
|
1,115
|
|
1,107
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
U.S. Commercial Truck
Operations
Selected
Data
(Unaudited)
|
|
|
Note: The company's
U.S. Commercial Truck Operations were acquired in November 2014;
therefore, comparative results are not applicable and results shown
are for only the three and six month periods ending June 30,
2015.
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
2015
|
|
June 30,
2015
|
|
U.S. Commercial Truck
Units:
|
|
|
|
|
New Retail
|
1,491
|
|
2,530
|
|
Used Retail
|
298
|
|
594
|
|
Total Truck
Units
|
1,789
|
|
3,124
|
|
|
|
|
|
U.S. Commercial
Truck Revenue: (Amounts in Millions)
|
|
|
|
|
New
Vehicles
|
$
146.3
|
|
$
248.5
|
|
Used
Vehicles
|
15.6
|
|
31.5
|
|
Finance and Insurance,
Net
|
1.6
|
|
2.9
|
|
Service and
Parts
|
75.0
|
|
138.1
|
|
Lease, Rental &
Wholesale
|
3.4
|
|
13.6
|
|
Total
Revenue
|
$
241.9
|
|
$
434.6
|
|
|
|
|
|
U.S. Commercial
Truck Gross Profit: (Amounts in Millions)
|
|
|
|
|
New
Vehicles
|
$
6.9
|
|
$
11.8
|
|
Used
Vehicles
|
1.6
|
|
3.3
|
|
Finance and Insurance,
Net
|
1.6
|
|
2.9
|
|
Service and
Parts
|
27.7
|
|
51.1
|
|
Lease, Rental &
Wholesale
|
0.5
|
|
2.0
|
|
Total Gross
Profit
|
$
38.3
|
|
$
71.1
|
|
|
|
|
|
U.S. Commercial Truck
Revenue per Vehicle Retailed:
|
|
|
|
|
New
Vehicles
|
$
98,154
|
|
$
98,232
|
|
Used
Vehicles
|
52,394
|
|
53,045
|
|
|
|
|
|
U.S. Commercial
Truck Gross Profit per Vehicle Retailed:
|
|
|
|
|
New
Vehicles
|
$
4,645
|
|
$
4,664
|
|
Used
Vehicles
|
5,462
|
|
5,671
|
|
Finance and
Insurance
|
902
|
|
947
|
|
|
|
|
|
U.S. Commercial Truck
Gross Margin:
|
|
|
|
New
Vehicle
|
4.7%
|
|
4.7%
|
|
Used
Vehicle
|
10.3%
|
|
10.5%
|
|
Service
and Parts
|
36.9%
|
|
37.0%
|
|
Lease,
Rental & Wholesale
|
14.7%
|
|
14.7%
|
|
Total
Gross Margin
|
15.8%
|
|
16.4%
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
Consolidated Non-GAAP
Reconciliations
(Unaudited)
|
|
|
The following table
reconciles reported net income to earnings before interest, taxes,
depreciation and amortization ("EBITDA") and earnings before
interest, taxes, depreciation, amortization and rent expense
("EBITDAR") for the three and six months ended June 30, 2015, and
2014:
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2015
|
|
2014
|
|
Increase/
(Decrease)
|
|
2015
|
|
2014
|
|
Increase/
(Decrease)
|
|
(Amounts in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
$ 95.7
|
|
$ 73.9
|
|
29.5%
|
|
$ 171.6
|
|
$ 141.8
|
|
21.0%
|
|
Add:
Depreciation
|
19.2
|
|
17.0
|
|
12.9%
|
|
37.8
|
|
33.1
|
|
14.2%
|
|
Other Interest
Expense
|
16.4
|
|
12.4
|
|
32.3%
|
|
32.7
|
|
24.8
|
|
31.9%
|
|
Income Taxes
|
47.6
|
|
41.2
|
|
15.5%
|
|
86.4
|
|
75.9
|
|
13.8%
|
|
Loss from Discontinued
Operations, net of tax
|
0.4
|
|
7.6
|
|
nm
|
|
1.6
|
|
7.3
|
|
nm
|
|
EBITDA
|
$ 179.3
|
|
$ 152.1
|
|
17.9%
|
|
$ 330.1
|
|
$ 282.9
|
|
16.7%
|
|
Add: Rent
Expense
|
48.9
|
|
48.0
|
|
1.9%
|
|
98.8
|
|
94.1
|
|
5.0%
|
|
EBITDAR
|
$ 228.2
|
|
$ 200.1
|
|
14.0%
|
|
$ 428.9
|
|
$ 377.0
|
|
13.8%
|
nm – not meaningful
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