Press Release

Penske Automotive Reports Third Quarter 2019 Results

Record Third Quarter Revenues Increase 5.5%

SG&A to Gross Profit Improves 30 BPS

Income From Continuing Operations of $116.1 million and Related Earnings Per Share of $1.42

Repurchased 1.0 Million Shares in Third Quarter and 4.0 Million Shares Year-to-Date

Company Release - 10/29/2019 6:59 AM ET

BLOOMFIELD HILLS, Mich., Oct. 29, 2019 /PRNewswire/ -- Penske Automotive Group, Inc. (NYSE: PAG), a diversified international transportation services company, today announced third quarter and nine months 2019 results. For the three months ended September 30, 2019, the company reported income from continuing operations attributable to common shareholders of $116.1 million, or $1.42 per share, compared to $130.1 million, or $1.53 per share in the prior year. For the three and nine months ended September 30, 2018, income and earnings per share from continuing operations attributable to common shareholders included a tax benefit of $11.6 million, or $0.14 per share, related to the final reconciliation of the income tax benefit of the 2017 U.S. Tax Cuts and Jobs Act. Excluding this benefit, adjusted income from continuing operations was $118.5 million, and related earnings per share was $1.40 in the third quarter last year. 

The shift in mix of the Company's earnings to be more heavily weighted towards the U.S. increased the effective tax rate to 26.8% in the three months ended September 30, 2019 compared to 17.3% in the same period last year. Excluding the $11.6 million tax benefit noted above, the Company's prior period comparable adjusted effective tax rate was 24.6%. Additionally, foreign exchange rates negatively impacted earnings per share attributable to common shareholders by $0.01. Weak market conditions in the U.K., largely as the result of Brexit, impacted third quarter 2019 results as the over-supply of vehicles in the market impacted new and used vehicle gross profit and margins. As a result, the company estimates its third quarter results were negatively impacted by approximately $0.26 per share.

"Our business produced another quarter of record revenue," said Penske Automotive Group Chair and CEO Roger Penske. "I am particularly pleased with the 30-basis points improvement in selling, general and administrative expense as a percentage of gross profit we achieved during the quarter, coupled with the strength in the performance of our U.S. retail automotive businesses, including finance and insurance gross profit, and the North American commercial truck dealership business. Despite the challenges from the U.K., I am very pleased with the performance of our business in the third quarter which demonstrates the positive impact from the Warner Truck Group acquisition and share repurchases."

For the nine months ended September 30, 2019, the company reported income from continuing operations attributable to common shareholders of $333.9 million, or $4.02 per share, compared to $372.7 million, or $4.37 per share in the prior year. Foreign exchange rates negatively impacted earnings per share attributable to common shareholders by $0.08. Excluding the tax benefit of $11.6 million noted above, adjusted income from continuing operations was $361.1 million and related adjusted earnings per share were $4.23 for the nine months ended September 30, 2018.

Third Quarter Operating Highlights





Reported

Excluding F/X

Revenue

Gross Profit

Earnings Before Taxes

+5.5%

+2.0%

+0.8%

+7.7%

+4.1%

+1.9%

Retail Automotive Same-Store Retail Revenue

+0.5%

+2.9%

     New Vehicle Revenue

-0.2%

+1.8%

     Used Vehicle Revenue

Flat

+3.0%

     Finance & Insurance Revenue

+5.0%

+7.6%

     Service & Parts Revenue

+4.3%

+6.2%

Total Retail Automotive Gross Profit Per Unit of $3,199, -$189/unit; excluding F/X -$116/unit

  • U.S. $3,581, +$ 147/unit
  • International $2,773, -$562/unit; excluding F/X -$407/unit

Used Vehicle Supercenter Operations

For the three months ended September 30, 2019, our used vehicle supercenters increased units retailed by 6.2% to 19,728 and generated $327.6 million in revenue. Total gross profit per unit retailed declined 14.0%, or $286, representing an increase of 4.2%, or $120 per unit in the U.S., offset by a decline of 21.1%, or $388 per unit in the U.K. The decline in used vehicle gross profit in the U.K was largely associated with an oversupply of vehicles in the market and a decline in used vehicle market values. For the nine months ended September 30, 2019, the used vehicle supercenters retailed 55,543 used units representing a decline of 0.9% and generated $954.0 million in revenue. Additionally, in the third quarter of 2019, we opened a new CarSense used vehicle supercenter in Glen Mills, Pennsylvania, increasing our used vehicle supercenter location total to fifteen (15).

Retail Commercial Truck Operations

During the third quarter of 2019, the company became the largest dealership group for Freightliner in North America with the acquisition of Warner Truck Centers, representing six dealership locations in Utah and Idaho, bringing our total commercial vehicle dealership count to twenty-five (25). For the three months ended September 30, 2019, total medium and heavy-duty units retailed increased 57.2%, and revenue increased 79.7% to $692.3 million. For the nine months ended September 30, 2019, total medium and heavy-duty truck units retailed increased 32.8% and revenue increased 42.8% to $1.5 billion. Same-store revenue increased 4.0% and 14.1% for the three and nine months ended September 30, 2019, respectively.

Penske Truck Leasing

Penske Truck Leasing Co., L.P. ("PTL") is a leading provider of full-service truck leasing, truck rental, contract maintenance, and logistics services. Effective September 1, 2019, Penske Transportation Solutions (PTS) has become the new universal brand name for PTL's various business lines, Penske Truck Leasing, Logistics, Vehicle Services, and Epes Transport Systems. The company accounts for its ownership interest in PTL using the equity method of accounting. For the three and nine months ended September 30, 2019, the company recorded $42.2 million and $106.0 million in earnings from this investment compared to $40.7 million and $91.7 million for the same periods last year, respectively.

Dividend and Share Repurchases

On October 16, 2019, the company announced that its Board of Directors increased the dividend to its common stock shareholders to $0.41 per share, the 34th consecutive increase in the quarterly dividend.

During the three months ended September 30, 2019, the company repurchased 1,021,622 shares for $43.6 million, or an average of $42.66 per share. For the nine months ended September 30, 2019, the company repurchased 3,986,836 shares for $174.1 million, or an average of $43.68 per share. In September 2019, our Board of Directors increased the authority delegated to management to repurchase our outstanding securities to $200.0 million.

Conference Call

Penske Automotive Group will host a conference call discussing financial results relating to the third quarter of 2019 on Tuesday, October 29, 2019, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (800) 230‑1074 – [International, please dial (612) 234‑9959]. 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 third quarter 2019 financial results has been posted to the company's website. To access the presentation or to listen to the company's webcast, please refer to www.penskeautomotive.com.

About Penske Automotive

Penske Automotive Group, Inc., (NYSE:PAG) headquartered in Bloomfield Hills, Michigan, is an international transportation services company that operates automotive and commercial truck dealerships principally in the United States, Canada, and Western Europe, and distributes commercial vehicles, diesel engines, gas engines, power systems and related parts and services principally in Australia and New Zealand. PAG employs more than 27,000 people worldwide and is a member of the Fortune 500, Russell 1000, and Russell 3000 indexes, and is ranked among the World's Most Admired Companies by Fortune Magazine. For additional information, visit the company's website at www.penskeautomotive.com.

Non-GAAP Financial Measures

This release contains certain non-GAAP financial measures as defined under SEC rules, such as earnings before interest, taxes, depreciation and amortization ("EBITDA"). The company has reconciled these measures to the most directly comparable GAAP measures in the release. The company believes that these widely accepted measures of operating profitability improve the transparency of the company's disclosures and provide a meaningful presentation of the company's results from its core business operations excluding the impact of items not related to the company's ongoing core business operations, and improve the period-to-period comparability of the company's results from its core business operations. These non-GAAP financial measures are not substitutes for GAAP financial results, and should only be considered in conjunction with the company's financial information that is presented in accordance with GAAP.

Caution Concerning Forward Looking Statements

Statements in this press release may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.'s product availability, future sales and earnings potential. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others: economic conditions generally, conditions in the credit markets, changes in interest rates and foreign currency exchange rates, changes in tariff rates, adverse impacts related to the outcome of the United Kingdom's potential departure from the European Union, adverse conditions affecting a particular manufacturer, including the adverse impact to the vehicle and parts supply chain due to limited vehicle availability due to WLTP and RDE, natural disasters, recall or other disruptions that interrupt the supply of vehicles or parts to us, changes in consumer credit availability, the outcome of legal and administrative matters, and other factors over which management has limited control. These forward-looking statements should be evaluated together with additional information about Penske Automotive Group's business, markets, conditions and other uncertainties, which could affect Penske Automotive Group's future performance. These risks and uncertainties are addressed in Penske Automotive Group's Form 10-K for the year ended December 31, 2018, and its other filings with the Securities and Exchange Commission ("SEC"). This press release speaks only as of its date, and Penske Automotive Group disclaims any duty to update the information herein.

Find a vehicle: http://www.penskecars.com
Engage Penske Automotive: http://www.penskesocial.com
Like Penske Automotive on Facebook: https://facebook.com/penskecars
Follow Penske Automotive on Twitter: https://twitter.com/penskecars
Visit Penske Automotive on YouTube: http://www.youtube.com/penskecars

Inquiries should contact:



J.D. Carlson

Anthony R. Pordon

Executive Vice President and

Executive Vice President Investor Relations

Chief Financial Officer

and Corporate Development

Penske Automotive Group, Inc.

Penske Automotive Group, Inc.

248-648-2810

248-648-2540

jcarlson@penskeautomotive.com

tpordon@penskeautomotive.com

 

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Statements of Income

 (Amounts In Millions, Except Per Share Data)

(Unaudited)
























Three Months Ended



Nine Months Ended



September 30,



September 30,



2019


2018


Change



2019


2018


Change

Revenue


$

5,967.6


$

5,658.6


5.5

%



$

17,287.8


$

17,345.8


(0.3)

%

Cost of Sales



5,097.9



4,806.0


6.1

%




14,698.8



14,739.0


(0.3)

%

Gross Profit


$

869.7


$

852.6


2.0

%



$

2,589.0


$

2,606.8


(0.7)

%

SG&A Expenses



672.8



662.8


1.5

%




2,008.1



2,001.3


0.3

%

Depreciation



27.5



25.9


6.2

%




81.0



77.2


4.9

%

Operating Income


$

169.4


$

163.9


3.4

%



$

499.9


$

528.3


(5.4)

%

Floor Plan Interest Expense



(21.4)



(20.2)


5.9

%




(64.2)



(59.0)


8.8

%

Other Interest Expense



(32.9)



(28.3)


16.3

%




(93.2)



(86.7)


7.5

%

Equity in Earnings of Affiliates



43.3



41.7


3.8

%




109.6



95.0


15.4

%

Income from Continuing Operations Before Income Taxes


$

158.4


$

157.1


0.8

%



$

452.1


$

477.6


(5.3)

%

Income Taxes



(42.4)



(27.1)


56.5

%




(118.6)



(104.7)


13.3

%

Income from Continuing Operations


$

116.0


$

130.0


(10.8)

%



$

333.5


$

372.9


(10.6)

%

Income from Discontinued Operations, net of tax



0.1



0.1


nm





0.3



0.2


nm


Net Income


$

116.1


$

130.1


(10.8)

%



$

333.8


$

373.1


(10.5)

%

Less: Income (Loss) Attributable to Non-Controlling Interests



(0.1)



(0.1)


nm





(0.4)



0.2


nm


Net Income Attributable to Common Shareholders


$

116.2


$

130.2


(10.8)

%



$

334.2


$

372.9


(10.4)

%





















Amounts Attributable to Common Shareholders:




















Reported Income from Continuing Operations


$

116.0


$

130.0


(10.8)

%



$

333.5


$

372.9


(10.6)

%

Less: Income (Loss) Attributable to Non-Controlling Interests



(0.1)



(0.1)


nm





(0.4)



0.2


nm


Income from Continuing Operations, net of tax


$

116.1


$

130.1


(10.8)

%



$

333.9


$

372.7


(10.4)

%

Income from Discontinued Operations, net of tax



0.1



0.1


nm





0.3



0.2


nm


Net Income Attributable to Common Shareholders


$

116.2


$

130.2


(10.8)

%



$

334.2


$

372.9


(10.4)

%

Income from Continuing Operations Per Share


$

1.42


$

1.53


(7.2)

%



$

4.02


$

4.37


(8.0)

%

Income Per Share


$

1.42


$

1.53


(7.2)

%



$

4.03


$

4.37


(7.8)

%

Weighted Average Shares Outstanding



81.7



84.9


(3.8)

%




83.0



85.3


(2.7)

%





















nm – not meaningful




















 

 

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Balance Sheets

(Amounts In Millions)

(Unaudited)










September 30,


December 31,



2019


2018

Assets:







Cash and Cash Equivalents


$

77.5


$

39.4

Accounts Receivable, Net



967.3



929.1

Inventories



4,043.9



4,040.1

Other Current Assets



98.8



86.6

Total Current Assets



5,187.5



5,095.2

Property and Equipment, Net



2,309.3



2,250.0

Operating Lease Right-of-Use Assets



2,384.4



Intangibles



2,423.9



2,238.2

Other Long-Term Assets



1,384.4



1,321.1

Total Assets


$

13,689.5


$

10,904.5








Liabilities and Equity:







Floor Plan Notes Payable


$

2,444.1


$

2,362.2

Floor Plan Notes Payable – Non-Trade



1,410.6



1,428.6

Accounts Payable



672.3



598.2

Accrued Expenses and Other Current Liabilities



722.2



566.6

Current Portion Long-Term Debt



96.8



92.0

Liabilities Held for Sale



0.5



0.7

Total Current Liabilities



5,346.5



5,048.3

Long-Term Debt



2,282.5



2,124.7

Long-Term Operating Lease Liabilities



2,334.7



Other Long-Term Liabilities



1,066.7



1,096.8

Total Liabilities



11,030.4



8,269.8

Equity



2,659.1



2,634.7

Total Liabilities and Equity


$

13,689.5


$

10,904.5








Supplemental Balance Sheet Information







New vehicle days' supply



64



72

Used vehicle days' supply



43



57

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Operations

Selected Data

(Unaudited)

















Three Months Ended


Nine Months Ended




September 30,


September 30,




2019


2018


2019


2018


Geographic Revenue Mix:














North America



61.8

%


57.9

%


58.3

%


55.4

%

U.K.



31.2

%


34.4

%


33.7

%


36.0

%

Other International



7.0

%


7.7

%


8.0

%


8.6

%

Total



100.0

%


100.0

%


100.0

%


100.0

%















Revenue: (Amounts in Millions)














Retail Automotive


$

5,155.4


$

5,148.5


$

15,442.9


$

15,900.0


Retail Commercial Trucks



692.3



385.3



1,451.4



1,016.5


Commercial Vehicles Australia/Power Systems and Other



119.9



124.8



393.5



429.3


Total


$

5,967.6


$

5,658.6


$

17,287.8


$

17,345.8
















Gross Profit: (Amounts in Millions)














Retail Automotive


$

747.5


$

762.2


$

2,283.9


$

2,338.5


Retail Commercial Trucks



86.6



57.8



199.5



156.8


Commercial Vehicles Australia/Power Systems and Other



35.6



32.6



105.6



111.5


Total


$

869.7


$

852.6


$

2,589.0


$

2,606.8
















Gross Margin:














Retail Automotive



14.5

%


14.8

%


14.8

%


14.7

%

Retail Commercial Trucks



12.5

%


15.0

%


13.7

%


15.4

%

Commercial Vehicles Australia/Power Systems and Other



29.7

%


26.1

%


26.8

%


26.0

%

Total



14.6

%


15.1

%


15.0

%


15.0

%


















Three Months Ended


Nine Months Ended




September 30,


September 30,


















2019



2018



2019



2018


Operating Items as a Percentage of Revenue:














Gross Profit



14.6

%


15.1

%


15.0

%


15.0

%

Selling, General and Administrative Expenses



11.3

%


11.7

%


11.6

%


11.5

%

Operating Income



2.8

%


2.9

%


2.9

%


3.0

%

Income from Continuing Operations Before Income Taxes



2.7

%


2.8

%


2.6

%


2.8

%















Operating Items as a Percentage of Total Gross Profit:














Selling, General and Administrative Expenses



77.4

%


77.7

%


77.6

%


76.8

%

Operating Income



19.5

%


19.2

%


19.3

%


20.3

%

















Three Months Ended


Nine Months Ended



September 30,


September 30,















(Amounts in Millions)


2019


2018


2019


2018
















EBITDA*


$

218.8


$

211.3


$

626.3


$

641.5


Floorplan Credits


$

9.7


$

11.1


$

27.3


$

29.9


Rent Expense


$

58.3


$

58.4


$

173.4


$

175.3


Capital Expenditures


$

54.3


$

69.7


$

188.8


$

188.5


Stock Repurchases


$

43.6


$


$

174.1


$

55.8


_____________________________

* See the following Non-GAAP reconciliation table.

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

Selected Data – Revenue and Gross Profit Mix

(Unaudited)













Three Months Ended


Nine Months Ended




September 30,


September 30,




2019


2018


2019


2018


Retail Automotive Revenue Mix:










Premium:










BMW / MINI


24

%

23

%

23

%

22

%

Audi


11

%

12

%

12

%

13

%

Mercedes-Benz


10

%

9

%

10

%

9

%

Land Rover / Jaguar


8

%

9

%

9

%

9

%

Porsche


6

%

5

%

6

%

6

%

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


68

%

68

%

70

%

69

%

Volume Non-U.S.:










Toyota


11

%

11

%

10

%

10

%

Honda


7

%

7

%

6

%

6

%

Volkswagen


4

%

4

%

4

%

4

%

Nissan


1

%

1

%

1

%

1

%

Others


2

%

1

%

2

%

2

%

Total Volume Non-U.S.


25

%

24

%

23

%

23

%

U.S.:










General Motors / Chrysler / Ford


1

%

2

%

1

%

2

%

Stand-Alone Used


6

%

6

%

6

%

6

%

Total


100

%

100

%

100

%

100

%











Retail Automotive Geographic Revenue Mix:










U.S.


58

%

56

%

56

%

54

%

U.K.


36

%

38

%

38

%

39

%

Other International


6

%

6

%

6

%

7

%

Total


100

%

100

%

100

%

100

%











Retail Automotive Geographic Gross Profit Mix:










U.S.


63

%

59

%

61

%

58

%

U.K.


32

%

35

%

34

%

36

%

Other International


5

%

6

%

5

%

6

%

Total


100

%

100

%

100

%

100

%

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

(Unaudited)
























Three Months Ended



Nine Months Ended



September 30,



September 30,



2019


2018


Change



2019


2018


Change

Retail Automotive Units:




















New Retail



57,214



58,933


(2.9)

%




166,730



179,266


(7.0)

%

Used Retail



74,096



72,000


2.9

%




218,906



218,371


0.2

%

Total



131,310



130,933


0.3

%




385,636



397,637


(3.0)

%





















Retail Automotive Revenue: (Amounts in Millions)




















New Vehicles


$

2,332.3


$

2,350.2


(0.8)

%



$

6,873.9


$

7,325.6


(6.2)

%

Used Vehicles



1,824.5



1,825.2


(0.0)

%




5,529.2



5,588.9


(1.1)

%

Finance and Insurance, Net



166.0



158.5


4.7

%




491.5



482.2


1.9

%

Service and Parts



543.5



523.8


3.8

%




1,654.0



1,615.1


2.4

%

Fleet and Wholesale



289.1



290.8


(0.6)

%




894.3



888.2


0.7

%

Total Revenue


$

5,155.4


$

5,148.5


0.1

%



$

15,442.9


$

15,900.0


(2.9)

%





















Retail Automotive Gross Profit: (Amounts in Millions)




















New Vehicles


$

164.3


$

179.8


(8.6)

%



$

511.8


$

552.8


(7.4)

%

Used Vehicles



89.7



105.3


(14.8)

%




284.2



327.5


(13.2)

%

Finance and Insurance, Net



166.0



158.5


4.7

%




491.5



482.2


1.9

%

Service and Parts



321.7



313.2


2.7

%




981.4



959.5


2.3

%

Fleet and Wholesale



5.8



5.4


7.4

%




15.0



16.5


(9.1)

%

Total Gross Profit


$

747.5


$

762.2


(1.9)

%



$

2,283.9


$

2,338.5


(2.3)

%





















Retail Automotive Revenue Per Vehicle Retailed:




















New Vehicles


$

40,764


$

39,880


2.2

%



$

41,227


$

40,865


0.9

%

Used Vehicles



24,623



25,350


(2.9)

%




25,258



25,593


(1.3)

%





















Retail Automotive Gross Profit Per Vehicle Retailed:




















New Vehicles


$

2,871


$

3,050


(5.9)

%



$

3,069


$

3,084


(0.5)

%

Used Vehicles



1,210



1,462


(17.2)

%




1,298



1,499


(13.4)

%

Finance and Insurance



1,264



1,210


4.5

%




1,275



1,212


5.2

%





















Retail Automotive Gross Margin:




















New Vehicles



7.0

%


7.7

%

-70

bps




7.4

%


7.5

%

-10

bps

Used Vehicles



4.9

%


5.8

%

-90

bps




5.1

%


5.9

%

-80

bps

Service and Parts



59.2

%


59.8

%

-60

bps




59.3

%


59.4

%

-10

bps

Fleet and Wholesale



2.0

%


1.9

%

+10

bps




1.7

%


1.9

%

-20

bps

Total Gross Margin



14.5

%


14.8

%

-30

bps




14.8

%


14.7

%

+10

bps





















Retail Automotive Revenue Mix Percentages:




















New Vehicles



45.2

%


45.6

%

-40

bps




44.5

%


46.1

%

-160

bps

Used Vehicles



35.4

%


35.5

%

-10

bps




35.8

%


35.2

%

+60

bps

Finance and Insurance, Net



3.2

%


3.1

%

+10

bps




3.2

%


3.0

%

+20

bps

Service and Parts



10.5

%


10.2

%

+30

bps




10.7

%


10.2

%

+50

bps

Fleet and Wholesale



5.7

%


5.6

%

+10

bps




5.8

%


5.5

%

+30

bps

Total



100.0

%


100.0

%






100.0

%


100.0

%























Retail Automotive Gross Profit Mix Percentages:




















New Vehicles



22.0

%


23.6

%

-160

bps




22.4

%


23.6

%

-120

bps

Used Vehicles



12.0

%


13.8

%

-180

bps




12.4

%


14.0

%

-160

bps

Finance and Insurance, Net



22.2

%


20.8

%

+140

bps




21.5

%


20.6

%

+90

bps

Service and Parts



43.0

%


41.1

%

+190

bps




43.0

%


41.0

%

+200

bps

Fleet and Wholesale



0.8

%


0.7

%

+10

bps




0.7

%


0.8

%

-10

bps

Total



100.0

%


100.0

%






100.0

%


100.0

%



 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations Same-Store

(Unaudited)























Three Months Ended



Nine Months Ended



September 30,



September 30,



2019


2018


Change



2019


2018


Change

Retail Automotive Same-Store Units:




















New Retail



56,573



57,819


(2.2)

%




163,418



175,001


(6.6)

%

Used Retail



73,261



70,881


3.4

%




215,720



213,903


0.8

%

Total



129,834



128,700


0.9

%




379,138



388,904


(2.5)

%





















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




















New Vehicles


$

2,294.1


$

2,299.4


(0.2)

%



$

6,710.4


$

7,149.1


(6.1)

%

Used Vehicles



1,800.0



1,800.9


(0.0)

%




5,445.6



5,495.3


(0.9)

%

Finance and Insurance, Net



163.9



156.1


5.0

%




484.6



474.0


2.2

%

Service and Parts



535.5



513.6


4.3

%




1,619.9



1,577.4


2.7

%

Fleet and Wholesale



285.2



285.7


(0.2)

%




872.5



867.1


0.6

%

Total Revenue


$

5,078.7


$

5,055.7


0.5

%



$

15,133.0


$

15,562.9


(2.8)

%





















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




















New Vehicles


$

160.6


$

176.1


(8.8)

%



$

496.8


$

540.7


(8.1)

%

Used Vehicles



88.2



104.1


(15.3)

%




282.0



322.9


(12.7)

%

Finance and Insurance, Net



163.9



156.1


5.0

%




484.6



474.0


2.2

%

Service and Parts



316.6



307.3


3.0

%




960.4



937.0


2.5

%

Fleet and Wholesale



5.7



5.5


3.6

%




14.6



16.4


(11.0)

%

Total Gross Profit


$

735.0


$

749.1


(1.9)

%



$

2,238.4


$

2,291.0


(2.3)

%





















Retail Automotive Same-Store Revenue Per Vehicle Retailed:




















New Vehicles


$

40,550


$

39,769


2.0

%



$

41,063


$

40,852


0.5

%

Used Vehicles



24,569



25,407


(3.3)

%




25,244



25,690


(1.7)

%





















Retail Automotive Same-Store Gross Profit Per Vehicle Retailed:




















New Vehicles


$

2,839


$

3,045


(6.8)

%



$

3,040


$

3,090


(1.6)

%

Used Vehicles



1,204



1,469


(18.0)

%




1,307



1,509


(13.4)

%

Finance and Insurance



1,262



1,213


4.0

%




1,278



1,219


4.8

%





















Retail Automotive Same-Store Gross Margin:




















New Vehicles



7.0

%


7.7

%

-70

bps




7.4

%


7.6

%

-20

bps

Used Vehicles



4.9

%


5.8

%

-90

bps




5.2

%


5.9

%

-70

bps

Service and Parts



59.1

%


59.8

%

-70

bps




59.3

%


59.4

%

-10

bps

Fleet and Wholesale



2.0

%


1.9

%

+10

bps




1.7

%


1.9

%

-20

bps

Total Gross Margin



14.5

%


14.8

%

-30

bps




14.8

%


14.7

%

+10

bps





















Retail Automotive Revenue Mix Percentages:




















New Vehicles



45.2

%


45.5

%

-30

bps




44.3

%


45.9

%

-160

bps

Used Vehicles



35.4

%


35.6

%

-20

bps




36.0

%


35.3

%

+70

bps

Finance and Insurance, Net



3.2

%


3.1

%

+10

bps




3.2

%


3.0

%

+20

bps

Service and Parts



10.5

%


10.2

%

+30

bps




10.7

%


10.1

%

+60

bps

Fleet and Wholesale



5.7

%


5.6

%

+10

bps




5.8

%


5.7

%

+10

bps

Total



100.0

%


100.0

%






100.0

%


100.0

%























Retail Automotive Gross Profit Mix Percentages:




















New Vehicles



21.9

%


23.5

%

-160

bps




22.2

%


23.6

%

-140

bps

Used Vehicles



12.0

%


13.9

%

-190

bps




12.6

%


14.1

%

-150

bps

Finance and Insurance, Net



22.3

%


20.8

%

+150

bps




21.6

%


20.7

%

+90

bps

Service and Parts



43.1

%


41.0

%

+210

bps




42.9

%


40.9

%

+200

bps

Fleet and Wholesale



0.7

%


0.8

%

-10

bps




0.7

%


0.7

%

---

bps

Total



100.0

%


100.0

%






100.0

%


100.0

%



 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Commercial Truck Operations

(Unaudited)























Three Months Ended



Nine Months Ended



September 30,



September 30,



2019


2018


Change



2019


2018


Change

Retail Commercial Truck Units:




















New Retail



4,154



2,431


70.9

%




8,688



6,107


42.3

%

Used Retail



578



579


(0.2)

%




1,435



1,516


(5.3)

%

Total



4,732



3,010


57.2

%




10,123



7,623


32.8

%





















Retail Commercial Truck Revenue: (Amounts in Millions)




















New Vehicles


$

476.2


$

249.4


90.9

%



$

979.6


$

630.5


55.4

%

Used Vehicles



36.1



32.5


11.1

%




87.8



86.3


1.7

%

Finance and Insurance, Net



3.1



2.9


6.9

%




9.0



9.0


%

Service and Parts



154.6



93.1


66.1

%




340.7



275.7


23.6

%

Wholesale and Other



22.3



7.4


201.4

%




34.3



15.0


128.7

%

Total Revenue


$

692.3


$

385.3


79.7

%



$

1,451.4


$

1,016.5


42.8

%





















Retail Commercial Truck Gross Profit: (Amounts in Millions)




















New Vehicles


$

21.8


$

12.0


81.7

%



$

43.8


$

28.2


55.3

%

Used Vehicles



3.3



4.0


(17.5)

%




8.9



9.8


(9.2)

%

Finance and Insurance, Net



3.1



2.9


6.9

%




9.0



9.0


%

Service and Parts



55.2



36.4


51.6

%




128.6



106.3


21.0

%

Wholesale and Other



3.2



2.5


nm





9.2



3.5


nm


Total Gross Profit


$

86.6


$

57.8


49.8

%



$

199.5


$

156.8


27.2

%





















Retail Commercial Truck Revenue Per Vehicle Retailed:




















New Vehicles


$

114,636


$

102,610


11.7

%



$

112,746


$

103,257


9.2

%

Used Vehicles



62,460



56,214


11.1

%




61,248



56,943


7.6

%





















Retail Commercial Truck Gross Profit Per Vehicle Retailed:




















New Vehicles


$

5,244


$

4,952


5.9

%



$

5,038


$

4,620


9.0

%

Used Vehicles



5,684



6,986


(18.6)

%




6,211



6,476


(4.1)

%

Finance and Insurance



658



948


(30.6)

%




888



1,183


(24.9)

%





















Retail Commercial Truck Gross Margin:




















New Vehicles



4.6

%


4.8

%

-20

bps




4.5

%


4.5

%

---

bps

Used Vehicles



9.1

%


12.3

%

-320

bps




10.1

%


11.4

%

-130

bps

Service and Parts



35.7

%


39.1

%

-340

bps




37.7

%


38.6

%

-90

bps

Total Gross Margin



12.5

%


15.0

%

-250

bps




13.7

%


15.4

%

-170

bps





















Retail Commercial Truck Revenue Mix Percentages:




















New Vehicles



68.8

%


64.7

%

+410

bps




67.5

%


62.0

%

+550

bps

Used Vehicles



5.2

%


8.4

%

-320

bps




6.0

%


8.5

%

-250

bps

Finance and Insurance, Net



0.4

%


0.8

%

-40

bps




0.6

%


0.9

%

-30

bps

Service and Parts



22.3

%


24.2

%

-190

bps




23.5

%


27.1

%

-360

bps

Wholesale and Other



3.3

%


1.9

%

+140

bps




2.4

%


1.5

%

+90

bps

Total



100.0

%


100.0

%






100.0

%


100.0

%























Retail Commercial Truck Gross Profit Mix Percentages:




















New Vehicles



25.2

%


20.8

%

+440

bps




22.0

%


18.0

%

+400

bps

Used Vehicles



3.8

%


6.9

%

-310

bps




4.5

%


6.3

%

-180

bps

Finance and Insurance, Net



3.6

%


5.0

%

-140

bps




4.5

%


5.7

%

-120

bps

Service and Parts



63.7

%


63.0

%

+70

bps




64.5

%


67.8

%

-330

bps

Wholesale and Other



3.7

%


4.3

%

-60

bps




4.5

%


2.2

%

+230

bps

Total



100.0

%


100.0

%






100.0

%


100.0

%



 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Commercial Truck Operations Same-Store

(Unaudited)























Three Months Ended



Nine Months Ended



September 30,



September 30,



2019


2018


Change



2019


2018


Change

Retail Commercial Truck Same-Store Units:




















New Retail



2,406



2,431


(1.0)

%




6,849



6,039


13.4

%

Used Retail



398



579


(31.3)

%




1,244



1,514


(17.8)

%

Total



2,804



3,010


(6.8)

%




8,093



7,553


7.1

%





















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




















New Vehicles


$

269.3


$

249.4


8.0

%



$

761.5


$

620.7


22.7

%

Used Vehicles



24.9



32.5


(23.4)

%




76.3



86.2


(11.5)

%

Finance and Insurance, Net



2.5



2.9


(13.8)

%




8.3



8.9


(6.7)

%

Service and Parts



98.6



92.7


6.4

%




281.9



272.5


3.4

%

Wholesale and Other



5.0



7.3


(31.5)

%




17.0



14.9


14.1

%

Total Revenue


$

400.3


$

384.8


4.0

%



$

1,145.0


$

1,003.2


14.1

%





















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




















New Vehicles


$

10.9


$

12.0


(9.2)

%



$

32.0


$

27.6


15.9

%

Used Vehicles



1.9



4.0


(52.5)

%




7.4



9.8


(24.5)

%

Finance and Insurance, Net



2.5



2.9


(13.8)

%




8.3



8.9


(6.7)

%

Service and Parts



39.1



36.3


7.7

%




111.4



105.1


6.0

%

Wholesale and Other



3.1



2.3


nm





9.0



3.2


nm


Total Gross Profit


$

57.5


$

57.5


%



$

168.1


$

154.6


8.7

%





















Retail Commercial Truck Same-Store Revenue Per Vehicle Retailed:




















New Vehicles


$

111,913


$

102,610


9.1

%



$

111,189


$

102,786


8.2

%

Used Vehicles



62,674



56,214


11.5

%




61,346



56,962


7.7

%





















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




















New Vehicles


$

4,514


$

4,952


(8.8)

%



$

4,678


$

4,572


2.3

%

Used Vehicles



4,680



6,986


(33.0)

%




5,975



6,471


(7.7)

%

Finance and Insurance



902



948


(4.9)

%




1,030



1,180


(12.7)

%





















Retail Commercial Truck Same-Store Gross Margin:




















New Vehicles



4.0

%


4.8

%

-80

bps




4.2

%


4.4

%

-20

bps

Used Vehicles



7.6

%


12.3

%

-470

bps




9.7

%


11.4

%

-170

bps

Service and Parts



39.7

%


39.2

%

+50

bps




39.5

%


38.6

%

+90

bps

Total Gross Margin



14.4

%


14.9

%

-50

bps




14.7

%


15.4

%

-70

bps





















Retail Commercial Truck Revenue Mix Percentages:




















New Vehicles



67.3

%


64.8

%

+250

bps




66.5

%


61.9

%

+460

bps

Used Vehicles



6.2

%


8.4

%

-220

bps




6.7

%


8.6

%

-190

bps

Finance and Insurance, Net



0.6

%


0.8

%

-20

bps




0.7

%


0.9

%

-20

bps

Service and Parts



24.6

%


24.1

%

+50

bps




24.6

%


27.2

%

-260

bps

Wholesale and Other



1.3

%


1.9

%

-60

bps




1.5

%


1.4

%

+10

bps

Total



100.0

%


100.0

%






100.0

%


100.0

%