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| Penske Automotive Group, Inc.
2555 Telegraph Road
Bloomfield Hills, MI 48302-0954 |
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FOR IMMEDIATE RELEASE |      |
PENSKE AUTOMOTIVE REPORTS RECORD RESULTS
2018 Revenue Increased 6.5% to $22.8 Billion
2018 Income From Continuing Operations of $470.5 Million and Earnings Per Share of $5.52
2018 Record Adjusted Income From Continuing Operations Increases 23% and Related Earnings Per Share Increases 24%
Fourth Quarter Income From Continuing Operations of $97.8 Million and Earnings Per Share of $1.15
Record Adjusted Fourth Quarter Income From Continuing Operations and Related Earnings Per Share Increases 10%
BLOOMFIELD HILLS, MI, February 7, 2019 – Penske Automotive Group, Inc. (NYSE:PAG), a diversified international transportation services company, today announced record full year and fourth quarter 2018 adjusted results. For the twelve months ended December 31, 2018, total revenue increased 6.5% to $22.8 billion, including a 3.4% increase in same-store retail automotive revenue and a 28.8% increase in same-store retail commercial truck revenue. Income from continuing operations attributable to common shareholders was $470.5 million and related earnings per share was $5.52. As shown in the non-GAAP reconciliation table, adjusted income from continuing operations increased 22.9% to $454.9 million and adjusted earnings per share increased 23.9% to $5.34. Excluding foreign exchange, total revenue increased 4.9% and same-store retail automotive revenue increased 1.6%. Foreign exchange rates positively impacted earnings per share attributable to common shareholders by $0.07.
For the three months ended December 31, 2018, the company reported income from continuing operations attributable to common shareholders of $97.8 million, or $1.15 per share, compared to $330 million, or $3.85 per share in the prior year. As shown in the non-GAAP reconciliation table, adjusted income from continuing operations increased 10% to $94.9 million and related earnings per share increased 10% to $1.11 per share. Fourth quarter 2018 results include a net benefit totaling $2.9 million
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after tax, or $0.04 per share, consisting of an $8.2 million net gain related to dealership sales, partially offset by valuation adjustments on certain dealerships totaling $5.3 million. Fourth quarter 2017 results included a $243 million benefit related to the enactment of the 2017 U.S. Tax Cuts and Jobs Act. Total revenue increased 0.8% to $5.4 billion, while same-store retail automotive revenue decreased 1.1%. Product availability shortages and Worldwide Harmonized Light Vehicle Testing (“WLTP”) certification delays in our Western European businesses are estimated to have impacted our operations by approximately $5 million, or $0.06 per share. Excluding foreign exchange, total revenue increased 2.2%, while same-store retail revenue increased 0.2%. Foreign exchange rates had no impact on earnings per share for the three months ended December 31, 2018.
“2018 was the best year in the history of Penske Automotive Group, including record results for units retailed, revenue and earnings before taxes,” said Chairman Roger S. Penske. “I am particularly pleased with the 10.2% growth in earnings before taxes and the $190.1 million our company returned to shareholders in dividends and share repurchases representing over 40% of our net income.” Penske continued, “For the fourth quarter, our business was driven by continued growth in used vehicles, service and parts, the commercial truck operation and our equity investment in Penske Truck Leasing. However, product availability in Western Europe of certain brands, WLTP and the ongoing diesel challenges impacted our performance during the quarter.”
Automotive Retail Highlights of the Fourth Quarter
| · | | Same-Store Retail Unit Sales -2.3% to 113,547 |
| Ø | | New unit retail sales -7.0% |
| Ø | | Used unit retail sales +2.6% |
| · | | Same-Store Retail Revenue -1.1%; Excluding Foreign Exchange +0.2% |
| Ø | | New -6.0%; Used +5.0%; Finance & Insurance +0.7%; Service and Parts +3.9% |
| · | | Same-Store Average Gross Profit Per Unit |
| Ø | | New $2,994, -$190/unit; Gross Margin 7.3%, -50 basis points |
| Ø | | Used $1,306, +$6/unit; Gross Margin 4.8%, -10 basis points |
| Ø | | Finance & Insurance $1,250, +$37/unit |
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Stand Alone Used SuperCenter Operations
The company operates fourteen stand-alone used vehicle supercenters, five of which are located in the U.S. and nine are located in the U.K., and one vehicle preparation center in the U.K. For the three and twelve months ended December 31, 2018, these supercenters retailed 14,940 and 71,013 units of the company’s total automotive units retailed, and generated $261.3 million and $1.3 billion in revenue, respectively. The company is in the process of developing four new stand-alone used vehicle supercenters which are expected to open in 2019. The expansion includes two new sites in the U.S. and another two in the U.K.
Retail Commercial Truck Operations
Penske Automotive Group operates twenty medium and heavy-duty truck dealership locations in the U.S. and Canada offering primarily Freightliner and Western Star brands. For the twelve months ended December 31, 2018, total medium and heavy duty truck units retailed increased 35.3% and revenue increased 31.2% to $1.4 billion. Service and parts represented 26.5% of revenue and 66.6% of gross profit. For the three months ended December 31, 2018, total medium and heavy-duty units retailed increased 15.1%, and revenue increased 16.2% to $358.0 million. Service and parts represented 24.8% of revenue and 63.1% of gross profit.
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. During the third quarter of 2017, the company increased its ownership interests in PTL by 5.5%, bringing our total ownership interest in PTL to 28.9%. The company accounts for its ownership interest in PTL using the equity method of accounting. For the three and twelve months ended December 31, 2018, the company recorded $37.8 million and $129.5 million in earnings from this investment compared to $34.7 million and $101.6 million for the same periods last year, respectively.
Dividend and Share Repurchases
On January 30, 2019, the company announced that its Board of Directors increased the dividend to its common stock shareholders to $0.38 per share, the 31st consecutive increase in the quarterly dividend.
During the three and twelve months ended December 31, 2018, the company repurchased 334,870 shares for $13.1 million, and 1,587,494 shares for $68.9 million, respectively. Approximately $136.9 million remains available to repurchase shares under the company’s existing share repurchase authorization.
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Conference Call
Penske Automotive Group will host a conference call discussing financial results relating to the fourth quarter of 2018 on Thursday, February 7, 2019, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (800) 230‑1085 – [International, please dial (612) 332‑0335]. 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 fourth quarter 2018 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 nearly 27,000 people worldwide and is a member of the Fortune 500 and Russell 2000, 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 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 and
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changes in interest rates and foreign currency exchange rates, changes in tariff rates, adverse impacts related to the outcome of the United Kingdom’s scheduled departure from the European Union on March 29, 2019, 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, natural disasters such as the recent hurricanes, 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, 2017, 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:
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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 |
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PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Condensed Statements of Income
(Amounts In Millions, Except Per Share Data)
(Unaudited)
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| | Three Months Ended | | | Twelve Months Ended |
| | December 31, | | | December 31, |
| | 2018 | | 2017 | | Change | | | 2018 | | 2017 | | Change |
Revenue | | $ | 5,439.3 | | $ | 5,398.0 | | 0.8 | % | | | $ | 22,785.1 | | $ | 21,386.9 | | 6.5 | % |
Cost of Sales | | | 4,631.2 | | | 4,589.7 | | 0.9 | % | | | | 19,370.2 | | | 18,164.4 | | 6.6 | % |
Gross Profit | | $ | 808.1 | | $ | 808.3 | | (0.0) | % | | | $ | 3,414.9 | | $ | 3,222.5 | | 6.0 | % |
SG&A Expenses | | | 645.0 | | | 646.2 | | (0.2) | % | | | | 2,646.3 | | | 2,516.0 | | 5.2 | % |
Depreciation | | | 26.5 | | | 25.1 | | 5.6 | % | | | | 103.7 | | | 95.1 | | 9.0 | % |
Operating Income | | $ | 136.6 | | $ | 137.0 | | (0.3) | % | | | $ | 664.9 | | $ | 611.4 | | 8.8 | % |
Floor Plan Interest Expense | | | (21.9) | | | (17.8) | | 23.0 | % | | | | (80.9) | | | (63.4) | | 27.6 | % |
Other Interest Expense | | | (28.0) | | | (28.2) | | (0.7) | % | | | | (114.7) | | | (107.4) | | 6.8 | % |
Equity in Earnings of Affiliates | | | 39.8 | | | 36.7 | | 8.4 | % | | | | 134.8 | | | 107.6 | | 25.3 | % |
Income from Continuing Operations Before Income Taxes | | $ | 126.5 | | $ | 127.7 | | (0.9) | % | | | $ | 604.1 | | $ | 548.2 | | 10.2 | % |
Income Taxes | | | (29.6) | | | 200.8 | | 114.7 | % | | | | (134.3) | | | 64.8 | | 307.3 | % |
Income from Continuing Operations | | $ | 96.9 | | $ | 328.5 | | (70.5) | % | | | $ | 469.8 | | $ | 613.0 | | (23.4) | % |
Income (Loss) from Discontinued Operations, net of tax | | | 0.3 | | | 0.1 | | nm | | | | | 0.5 | | | (0.2) | | nm | |
Net Income | | $ | 97.2 | | $ | 328.6 | | (70.4) | % | | | $ | 470.3 | | $ | 612.8 | | (23.3) | % |
Less: (Loss) Income Attributable to Non-Controlling Interests | | | (0.9) | | | (1.5) | | nm | | | | | (0.7) | | | (0.5) | | nm | |
Net Income Attributable to Common Shareholders | | $ | 98.1 | | $ | 330.1 | | (70.3) | % | | | $ | 471.0 | | $ | 613.3 | | (23.2) | % |
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Amounts Attributable to Common Shareholders: | | | | | | | | | | | | | | | | | | | |
Reported Income from Continuing Operations | | $ | 96.9 | | $ | 328.5 | | (70.5) | % | | | $ | 469.8 | | $ | 613.0 | | (23.4) | % |
Less: (Loss) Income Attributable to Non-Controlling Interests | | | (0.9) | | | (1.5) | | nm | | | | | (0.7) | | | (0.5) | | nm | |
Income from Continuing Operations, net of tax | | $ | 97.8 | | $ | 330.0 | | (70.4) | % | | | $ | 470.5 | | $ | 613.5 | | (23.3) | % |
Income (Loss) from Discontinued Operations, net of tax | | | 0.3 | | | 0.1 | | nm | | | | | 0.5 | | | (0.2) | | nm | |
Net Income Attributable to Common Shareholders | | $ | 98.1 | | $ | 330.1 | | (70.3) | % | | | $ | 471.0 | | $ | 613.3 | | (23.2) | % |
Income from Continuing Operations Per Share | | $ | 1.15 | | $ | 3.85 | | (70.1) | % | | | $ | 5.52 | | $ | 7.14 | | (22.7) | % |
Income Per Share | | $ | 1.16 | | $ | 3.85 | | (69.9) | % | | | $ | 5.53 | | $ | 7.14 | | (22.5) | % |
Weighted Average Shares Outstanding | | | 84.8 | | | 85.8 | | (1.2) | % | | | | 85.2 | | | 85.9 | | (0.8) | % |
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nm – not meaningful | | | | | | | | | | | | | | | | | | | |
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PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Condensed Balance Sheets
(Amounts In Millions)
(Unaudited)
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| | December 31, | | December 31, |
| | 2018 | | 2017 |
Assets: | | | | | | |
Cash and Cash Equivalents | | $ | 39.4 | | $ | 45.7 |
Accounts Receivable, Net | | | 929.1 | | | 954.9 |
Inventories | | | 4,040.1 | | | 3,944.1 |
Other Current Assets | | | 86.6 | | | 81.8 |
Total Current Assets | | | 5,095.2 | | | 5,026.5 |
Property and Equipment, Net | | | 2,250.0 | | | 2,108.6 |
Intangibles | | | 2,238.2 | | | 2,134.5 |
Other Long-Term Assets | | | 1,321.1 | | | 1,271.0 |
Total Assets | | $ | 10,904.5 | | $ | 10,540.6 |
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Liabilities and Equity: | | | | | | |
Floor Plan Notes Payable | | $ | 2,362.2 | | $ | 2,343.2 |
Floor Plan Notes Payable – Non-Trade | | | 1,428.6 | | | 1,418.6 |
Accounts Payable | | | 598.2 | | | 641.6 |
Accrued Expenses | | | 566.6 | | | 523.5 |
Current Portion Long-Term Debt | | | 92.0 | | | 72.8 |
Liabilities Held for Sale | | | 0.7 | | | 0.7 |
Total Current Liabilities | | | 5,048.3 | | | 5,000.4 |
Long-Term Debt | | | 2,124.7 | | | 2,090.4 |
Other Long-Term Liabilities | | | 1,096.8 | | | 1,021.8 |
Total Liabilities | | | 8,269.8 | | | 8,112.6 |
Equity | | | 2,634.7 | | | 2,428.0 |
Total Liabilities and Equity | | $ | 10,904.5 | | $ | 10,540.6 |
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Supplemental Balance Sheet Information | | | | | | |
New vehicle days' supply | | | 72 | | | 67 |
Used vehicle days' supply | | | 57 | | | 55 |
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PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Operations
Selected Data
(Unaudited)
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| | Three Months Ended | | Twelve Months Ended | |
| | December 31, | | December 31, | |
| | 2018 | | 2017 | | 2018 | | 2017 | |
Geographic Revenue Mix: | | | | | | | | | | | | | |
North America | | | 60.0 | % | | 61.0 | % | | 56.5 | % | | 59.2 | % |
U.K. | | | 31.6 | % | | 30.3 | % | | 35.0 | % | | 33.0 | % |
Other International | | | 8.4 | % | | 8.7 | % | | 8.5 | % | | 7.8 | % |
Total | | | 100.0 | % | | 100.0 | % | | 100.0 | % | | 100.0 | % |
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Revenue: (Amounts in Millions) | | | | | | | | | | | | | |
Retail Automotive | | $ | 4,949.2 | | $ | 4,941.8 | | $ | 20,849.2 | | $ | 19,824.3 | |
Retail Commercial Trucks | | | 358.0 | | | 308.2 | | | 1,374.5 | | | 1,048.0 | |
Commercial Vehicles Australia/Power Systems and Other | | | 132.1 | | | 148.0 | | | 561.4 | | | 514.6 | |
Total | | $ | 5,439.3 | | $ | 5,398.0 | | $ | 22,785.1 | | $ | 21,386.9 | |
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Gross Profit: (Amounts in Millions) | | | | | | | | | | | | | |
Retail Automotive | | $ | 720.1 | | $ | 726.3 | | $ | 3,058.6 | | $ | 2,924.8 | |
Retail Commercial Trucks | | | 54.7 | | | 45.1 | | | 211.5 | | | 165.8 | |
Commercial Vehicles Australia/Power Systems and Other | | | 33.3 | | | 36.9 | | | 144.8 | | | 131.9 | |
Total | | $ | 808.1 | | $ | 808.3 | | $ | 3,414.9 | | $ | 3,222.5 | |
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Gross Margin: | | | | | | | | | | | | | |
Retail Automotive | | | 14.5 | % | | 14.7 | % | | 14.7 | % | | 14.8 | % |
Retail Commercial Trucks | | | 15.3 | % | | 14.6 | % | | 15.4 | % | | 15.8 | % |
Commercial Vehicles Australia/Power Systems and Other | | | 25.2 | % | | 24.9 | % | | 25.8 | % | | 25.6 | % |
Total | | | 14.9 | % | | 15.0 | % | | 15.0 | % | | 15.1 | % |
| | | | | | | | | | |
| | Three Months Ended | | Twelve Months Ended |
| | December 31, | | December 31, |
| | | | | | | | | | |
| | 2018 | | 2017 | | | 2018 | | 2017 | |
Operating Items as a Percentage of Revenue: | | | | | | | | | | |
Gross Profit | | 14.9 | % | 15.0 | % | | 15.0 | % | 15.1 | % |
Selling, General and Administrative Expenses | | 11.9 | % | 12.0 | % | | 11.6 | % | 11.8 | % |
Operating Income | | 2.5 | % | 2.5 | % | | 2.9 | % | 2.9 | % |
Income from Continuing Operations Before Income Taxes | | 2.3 | % | 2.4 | % | | 2.7 | % | 2.6 | % |
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Operating Items as a Percentage of Total Gross Profit: | | | | | | | | | | |
Selling, General and Administrative Expenses | | 79.8 | % | 79.9 | % | | 77.5 | % | 78.1 | % |
Operating Income | | 16.9 | % | 16.9 | % | | 19.5 | % | 19.0 | % |
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| | Three Months Ended | | Twelve Months Ended |
| | December 31, | | December 31, |
| | | | | | | | | | | | | | |
(Amounts in Millions) | | 2018 | | 2017 | | | 2018 | | 2017 | |
| | | | | | | | | | | | | | |
EBITDA* | | $ | 181.0 | | $ | 181.0 | | | $ | 822.5 | | $ | 750.7 | |
Floorplan Credits | | $ | 10.4 | | $ | 11.1 | | | $ | 40.3 | | $ | 40.4 | |
Rent Expense | | $ | 56.8 | | $ | 57.3 | | | $ | 232.1 | | $ | 225.4 | |
Capital Expenditures | | $ | 117.1 | | $ | 66.9 | | | $ | 305.6 | | $ | 247.0 | |
Stock Repurchases | | $ | 13.1 | | $ | — | | | $ | 68.9 | | $ | 18.5 | |
* See the following Non-GAAP reconciliation table.
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PENSKE AUTOMOTIVE GROUP, INC.
Retail Automotive Operations
Selected Data – Revenue and Gross Profit Mix
(Unaudited)
| | | | | | | | | |
| | Three Months Ended | | Twelve Months Ended | |
| | December 31, | | December 31, | |
| | 2018 | | 2017 | | 2018 | | 2017 | |
Retail Automotive Revenue Mix: | | | | | | | | | |
Premium: | | | | | | | | | |
BMW / MINI | | 23 | % | 23 | % | 23 | % | 23 | % |
Audi | | 12 | % | 15 | % | 13 | % | 14 | % |
Mercedes-Benz | | 10 | % | 10 | % | 9 | % | 10 | % |
Land Rover / Jaguar | | 10 | % | 8 | % | 9 | % | 8 | % |
Porsche | | 5 | % | 6 | % | 6 | % | 6 | % |
Ferrari / Maserati | | 3 | % | 3 | % | 3 | % | 3 | % |
Lexus | | 3 | % | 3 | % | 3 | % | 3 | % |
Acura | | 1 | % | 1 | % | 1 | % | 1 | % |
Bentley | | 1 | % | 1 | % | 1 | % | 1 | % |
Others | | 2 | % | 1 | % | 2 | % | 1 | % |
Total Premium | | 70 | % | 71 | % | 70 | % | 70 | % |
Volume Non-U.S.: | | | | | | | | | |
Toyota | | 10 | % | 10 | % | 10 | % | 10 | % |
Honda | | 7 | % | 7 | % | 6 | % | 7 | % |
Volkswagen | | 4 | % | 3 | % | 4 | % | 3 | % |
Nissan | | 1 | % | 1 | % | 1 | % | 1 | % |
Others | | 1 | % | 2 | % | 1 | % | 2 | % |
Total Volume Non-U.S. | | 23 | % | 23 | % | 22 | % | 23 | % |
U.S.: | | | | | | | | | |
General Motors / Chrysler / Ford | | 2 | % | 2 | % | 2 | % | 3 | % |
Stand-Alone Used | | 5 | % | 4 | % | 6 | % | 4 | % |
Total | | 100 | % | 100 | % | 100 | % | 100 | % |
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Retail Automotive Geographic Revenue Mix: | | | | | | | | | |
U.S. | | 59 | % | 60 | % | 55 | % | 59 | % |
U.K. | | 35 | % | 33 | % | 38 | % | 35 | % |
Other International | | 6 | % | 7 | % | 7 | % | 6 | % |
Total | | 100 | % | 100 | % | 100 | % | 100 | % |
| | | | | | | | | |
Retail Automotive Geographic Gross Profit Mix: | | | | | | | | | |
U.S. | | 63 | % | 65 | % | 59 | % | 63 | % |
U.K. | | 31 | % | 29 | % | 35 | % | 32 | % |
Other International | | 6 | % | 6 | % | 6 | % | 5 | % |
Total | | 100 | % | 100 | % | 100 | % | 100 | % |
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PENSKE AUTOMOTIVE GROUP, INC.
Retail Automotive Operations
(Unaudited)
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | | Twelve Months Ended |
| | December 31, | | | December 31, |
| | 2018 | | 2017 | | Change | | | 2018 | | 2017 | | Change |
Retail Automotive Units: | | | | | | | | | | | | | | | | | | | |
New Retail | | | 56,698 | | | 61,397 | | (7.7) | % | | | | 235,964 | | | 248,774 | | (5.1) | % |
Used Retail | | | 64,171 | | | 58,538 | | 9.6 | % | | | | 282,542 | | | 252,922 | | 11.7 | % |
Total | | | 120,869 | | | 119,935 | | 0.8 | % | | | | 518,506 | | | 501,696 | | 3.4 | % |
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Retail Automotive Revenue: (Amounts in Millions) | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 2,340.8 | | $ | 2,488.6 | | (5.9) | % | | | $ | 9,666.4 | | $ | 9,678.5 | | (0.1) | % |
Used Vehicles | | | 1,663.2 | | | 1,536.2 | | 8.3 | % | | | | 7,252.1 | | | 6,386.8 | | 13.5 | % |
Finance and Insurance, Net | | | 147.4 | | | 145.2 | | 1.5 | % | | | | 629.6 | | | 581.8 | | 8.2 | % |
Service and Parts | | | 536.3 | | | 517.4 | | 3.7 | % | | | | 2,151.4 | | | 2,057.5 | | 4.6 | % |
Fleet and Wholesale | | | 261.5 | | | 254.4 | | 2.8 | % | | | | 1,149.7 | | | 1,119.7 | | 2.7 | % |
Total Revenue | | $ | 4,949.2 | | $ | 4,941.8 | | 0.1 | % | | | $ | 20,849.2 | | $ | 19,824.3 | | 5.2 | % |
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Retail Automotive Gross Profit: (Amounts in Millions) | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 171.8 | | $ | 193.6 | | (11.3) | % | | | $ | 724.6 | | $ | 746.2 | | (2.9) | % |
Used Vehicles | | | 81.6 | | | 75.6 | | 7.9 | % | | | | 409.1 | | | 358.0 | | 14.3 | % |
Finance and Insurance, Net | | | 147.4 | | | 145.2 | | 1.5 | % | | | | 629.6 | | | 581.8 | | 8.2 | % |
Service and Parts | | | 317.8 | | | 308.3 | | 3.1 | % | | | | 1,277.3 | | | 1,219.7 | | 4.7 | % |
Fleet and Wholesale | | | 1.5 | | | 3.6 | | (58.3) | % | | | | 18.0 | | | 19.1 | | (5.8) | % |
Total Gross Profit | | $ | 720.1 | | $ | 726.3 | | (0.9) | % | | | $ | 3,058.6 | | $ | 2,924.8 | | 4.6 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Revenue Per Vehicle Retailed: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 41,285 | | $ | 40,533 | | 1.9 | % | | | $ | 40,966 | | $ | 38,905 | | 5.3 | % |
Used Vehicles | | | 25,919 | | | 26,242 | | (1.2) | % | | | | 25,667 | | | 25,252 | | 1.6 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Gross Profit Per Vehicle Retailed: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 3,029 | | $ | 3,153 | | (3.9) | % | | | $ | 3,070 | | $ | 2,999 | | 2.4 | % |
Used Vehicles | | | 1,272 | | | 1,290 | | (1.4) | % | | | | 1,448 | | | 1,415 | | 2.3 | % |
Finance and Insurance | | | 1,219 | | | 1,211 | | 0.7 | % | | | | 1,214 | | | 1,160 | | 4.7 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Gross Margin: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | | 7.3 | % | | 7.8 | % | -50 | bps | | | | 7.5 | % | | 7.7 | % | -20 | bps |
Used Vehicles | | | 4.9 | % | | 4.9 | % | --- | bps | | | | 5.6 | % | | 5.6 | % | --- | bps |
Service and Parts | | | 59.3 | % | | 59.6 | % | -30 | bps | | | | 59.4 | % | | 59.3 | % | +10 | bps |
Fleet and Wholesale | | | 0.6 | % | | 1.4 | % | -80 | bps | | | | 1.6 | % | | 1.7 | % | -10 | bps |
Total Gross Margin | | | 14.5 | % | | 14.7 | % | -20 | bps | | | | 14.7 | % | | 14.8 | % | -10 | bps |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Revenue Mix Percentages: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | | 47.3 | % | | 50.4 | % | -310 | bps | | | | 46.4 | % | | 48.8 | % | -240 | bps |
Used Vehicles | | | 33.6 | % | | 31.1 | % | +250 | bps | | | | 34.8 | % | | 32.2 | % | +260 | bps |
Finance and Insurance, Net | | | 3.0 | % | | 2.9 | % | +10 | bps | | | | 3.0 | % | | 2.9 | % | +10 | bps |
Service and Parts | | | 10.8 | % | | 10.5 | % | +30 | bps | | | | 10.3 | % | | 10.4 | % | -10 | bps |
Fleet and Wholesale | | | 5.3 | % | | 5.1 | % | +20 | bps | | | | 5.5 | % | | 5.7 | % | -20 | bps |
Total | | | 100.0 | % | | 100.0 | % | | | | | | 100.0 | % | | 100.0 | % | | |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Gross Profit Mix Percentages: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | | 23.9 | % | | 26.7 | % | -280 | bps | | | | 23.7 | % | | 25.5 | % | -180 | bps |
Used Vehicles | | | 11.3 | % | | 10.4 | % | +90 | bps | | | | 13.4 | % | | 12.2 | % | +120 | bps |
Finance and Insurance, Net | | | 20.5 | % | | 20.0 | % | +50 | bps | | | | 20.6 | % | | 19.9 | % | +70 | bps |
Service and Parts | | | 44.1 | % | | 42.4 | % | +170 | bps | | | | 41.8 | % | | 41.7 | % | +10 | bps |
Fleet and Wholesale | | | 0.2 | % | | 0.5 | % | -30 | bps | | | | 0.5 | % | | 0.7 | % | -20 | bps |
Total | | | 100.0 | % | | 100.0 | % | | | | | | 100.0 | % | | 100.0 | % | | |
| | |
| 10 |
|
PENSKE AUTOMOTIVE GROUP, INC.
Retail Automotive Operations Same-Store
(Unaudited)
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | | Twelve Months Ended |
| | December 31, | | | December 31, |
| | 2018 | | 2017 | | Change | | | 2018 | | 2017 | | Change |
Retail Automotive Same-Store Units: | | | | | | | | | | | | | | | | | | | |
New Retail | | | 55,290 | | | 59,424 | | (7.0) | % | | | | 227,201 | | | 236,163 | | (3.8) | % |
Used Retail | | | 58,257 | | | 56,778 | | 2.6 | % | | | | 205,081 | | | 201,031 | | 2.0 | % |
Total | | | 113,547 | | | 116,202 | | (2.3) | % | | | | 432,282 | | | 437,194 | | (1.1) | % |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Same-Store Revenue: (Amounts in Millions) | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 2,271.2 | | $ | 2,417.0 | | (6.0) | % | | | $ | 9,186.1 | | $ | 9,163.7 | | 0.2 | % |
Used Vehicles | | | 1,576.6 | | | 1,500.9 | | 5.0 | % | | | | 5,979.3 | | | 5,539.2 | | 7.9 | % |
Finance and Insurance, Net | | | 142.0 | | | 141.0 | | 0.7 | % | | | | 538.8 | | | 509.0 | | 5.9 | % |
Service and Parts | | | 525.2 | | | 505.6 | | 3.9 | % | | | | 2,046.0 | | | 1,950.4 | | 4.9 | % |
Fleet and Wholesale | | | 249.5 | | | 243.4 | | 2.5 | % | | | | 959.2 | | | 973.5 | | (1.5) | % |
Total Revenue | | $ | 4,764.5 | | $ | 4,807.9 | | (0.9) | % | | | $ | 18,709.4 | | $ | 18,135.8 | | 3.2 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Same-Store Gross Profit: (Amounts in Millions) | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 165.6 | | $ | 189.2 | | (12.5) | % | | | $ | 680.9 | | $ | 707.2 | | (3.7) | % |
Used Vehicles | | | 76.1 | | | 73.8 | | 3.1 | % | | | | 320.8 | | | 296.7 | | 8.1 | % |
Finance and Insurance, Net | | | 142.0 | | | 141.0 | | 0.7 | % | | | | 538.8 | | | 509.0 | | 5.9 | % |
Service and Parts | | | 308.7 | | | 300.6 | | 2.7 | % | | | | 1,192.2 | | | 1,142.8 | | 4.3 | % |
Fleet and Wholesale | | | 1.3 | | | 3.6 | | (63.9) | % | | | | 12.1 | | | 15.9 | | (23.9) | % |
Total Gross Profit | | $ | 693.7 | | $ | 708.2 | | (2.0) | % | | | $ | 2,744.8 | | $ | 2,671.6 | | 2.7 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Same-Store Revenue Per Vehicle Retailed: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 41,078 | | $ | 40,674 | | 1.0 | % | | | $ | 40,432 | | $ | 38,802 | | 4.2 | % |
Used Vehicles | | | 27,062 | | | 26,434 | | 2.4 | % | | | | 29,156 | | | 27,554 | | 5.8 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Same-Store Gross Profit Per Vehicle Retailed: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 2,994 | | $ | 3,184 | | (6.0) | % | | | $ | 2,997 | | $ | 2,995 | | 0.1 | % |
Used Vehicles | | | 1,306 | | | 1,300 | | 0.5 | % | | | | 1,564 | | | 1,476 | | 6.0 | % |
Finance and Insurance | | | 1,250 | | | 1,213 | | 3.1 | % | | | | 1,246 | | | 1,164 | | 7.0 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Same-Store Gross Margin: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | | 7.3 | % | | 7.8 | % | -50 | bps | | | | 7.4 | % | | 7.7 | % | -30 | bps |
Used Vehicles | | | 4.8 | % | | 4.9 | % | -10 | bps | | | | 5.4 | % | | 5.4 | % | --- | bps |
Service and Parts | | | 58.8 | % | | 59.5 | % | -70 | bps | | | | 58.3 | % | | 58.6 | % | -30 | bps |
Fleet and Wholesale | | | 0.5 | % | | 1.5 | % | -100 | bps | | | | 1.3 | % | | 1.6 | % | -30 | bps |
Total Gross Margin | | | 14.6 | % | | 14.7 | % | -10 | bps | | | | 14.7 | % | | 14.7 | % | --- | bps |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Revenue Mix Percentages: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | | 47.7 | % | | 50.3 | % | -260 | bps | | | | 49.1 | % | | 50.5 | % | -140 | bps |
Used Vehicles | | | 33.1 | % | | 31.2 | % | +190 | bps | | | | 32.0 | % | | 30.5 | % | +150 | bps |
Finance and Insurance, Net | | | 3.0 | % | | 2.9 | % | +10 | bps | | | | 2.9 | % | | 2.8 | % | +10 | bps |
Service and Parts | | | 11.0 | % | | 10.5 | % | +50 | bps | | | | 10.9 | % | | 10.8 | % | +10 | bps |
Fleet and Wholesale | | | 5.2 | % | | 5.1 | % | +10 | bps | | | | 5.1 | % | | 5.4 | % | -30 | bps |
Total | | | 100.0 | % | | 100.0 | % | | | | | | 100.0 | % | | 100.0 | % | | |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Gross Profit Mix Percentages: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | | 23.9 | % | | 26.7 | % | -280 | bps | | | | 24.8 | % | | 26.5 | % | -170 | bps |
Used Vehicles | | | 11.0 | % | | 10.4 | % | +60 | bps | | | | 11.7 | % | | 11.1 | % | +60 | bps |
Finance and Insurance, Net | | | 20.5 | % | | 19.9 | % | +60 | bps | | | | 19.6 | % | | 19.1 | % | +50 | bps |
Service and Parts | | | 44.5 | % | | 42.4 | % | +210 | bps | | | | 43.4 | % | | 42.8 | % | +60 | bps |
Fleet and Wholesale | | | 0.1 | % | | 0.6 | % | -50 | bps | | | | 0.5 | % | | 0.5 | % | --- | bps |
Total | | | 100.0 | % | | 100.0 | % | | | | | | 100.0 | % | | 100.0 | % | | |
| | |
| 11 |
|
PENSKE AUTOMOTIVE GROUP, INC.
Retail Commercial Truck Operations
(Unaudited)
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | | Twelve Months Ended |
| | December 31, | | | December 31, |
| | 2018 | | 2017 | | Change | | | 2018 | | 2017 | | Change |
Retail Commercial Truck Units: | | | | | | | | | | | | | | | | | | | |
New Retail | | | 2,184 | | | 1,892 | | 15.4 | % | | | | 8,291 | | | 5,952 | | 39.3 | % |
Used Retail | | | 457 | | | 402 | | 13.7 | % | | | | 1,973 | | | 1,632 | | 20.9 | % |
Total | | | 2,641 | | | 2,294 | | 15.1 | % | | | | 10,264 | | | 7,584 | | 35.3 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Revenue: (Amounts in Millions) | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 236.4 | | $ | 201.7 | | 17.2 | % | | | $ | 866.9 | | $ | 613.2 | | 41.4 | % |
Used Vehicles | | | 25.7 | | | 21.5 | | 19.5 | % | | | | 112.0 | | | 89.4 | | 25.3 | % |
Finance and Insurance, Net | | | 2.9 | | | 2.3 | | 26.1 | % | | | | 11.9 | | | 8.9 | | 33.7 | % |
Service and Parts | | | 88.8 | | | 81.0 | | 9.6 | % | | | | 364.5 | | | 325.6 | | 11.9 | % |
Other | | | 4.2 | | | 1.7 | | 147.1 | % | | | | 19.2 | | | 10.9 | | 76.1 | % |
Total Revenue | | $ | 358.0 | | $ | 308.2 | | 16.2 | % | | | $ | 1,374.5 | | $ | 1,048.0 | | 31.2 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Gross Profit: (Amounts in Millions) | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 12.6 | | $ | 9.7 | | 29.9 | % | | | $ | 40.8 | | $ | 27.1 | | 50.6 | % |
Used Vehicles | | | 2.9 | | | 2.6 | | 11.5 | % | | | | 12.7 | | | 8.7 | | 46.0 | % |
Finance and Insurance, Net | | | 2.9 | | | 2.3 | | 26.1 | % | | | | 11.9 | | | 8.9 | | 33.7 | % |
Service and Parts | | | 34.5 | | | 30.6 | | 12.7 | % | | | | 140.8 | | | 121.4 | | 16.0 | % |
Other | | | 1.8 | | | (0.1) | | nm | | | | | 5.3 | | | (0.3) | | nm | |
Total Gross Profit | | $ | 54.7 | | $ | 45.1 | | 21.3 | % | | | $ | 211.5 | | $ | 165.8 | | 27.6 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Revenue Per Vehicle Retailed: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 108,216 | | $ | 106,648 | | 1.5 | % | | | $ | 104,563 | | $ | 103,022 | | 1.5 | % |
Used Vehicles | | | 56,183 | | | 53,739 | | 4.5 | % | | | | 56,767 | | | 54,808 | | 3.6 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Gross Profit Per Vehicle Retailed: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 5,745 | | $ | 5,009 | | 14.7 | % | | | $ | 4,916 | | $ | 4,550 | | 8.0 | % |
Used Vehicles | | | 6,243 | | | 6,558 | | (4.8) | % | | | | 6,422 | | | 5,317 | | 20.8 | % |
Finance and Insurance | | | 1,107 | | | 1,025 | | 8.0 | % | | | | 1,163 | | | 1,178 | | (1.3) | % |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Gross Margin: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | | 5.3 | % | | 4.8 | % | +50 | bps | | | | 4.7 | % | | 4.4 | % | +30 | bps |
Used Vehicles | | | 11.3 | % | | 12.1 | % | -80 | bps | | | | 11.3 | % | | 9.7 | % | +160 | bps |
Service and Parts | | | 38.9 | % | | 37.8 | % | +110 | bps | | | | 38.6 | % | | 37.3 | % | +130 | bps |
Total Gross Margin | | | 15.3 | % | | 14.6 | % | +70 | bps | | | | 15.4 | % | | 15.8 | % | -40 | bps |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Revenue Mix Percentages: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | | 66.0 | % | | 65.4 | % | +60 | bps | | | | 63.1 | % | | 58.5 | % | +460 | bps |
Used Vehicles | | | 7.2 | % | | 7.0 | % | +20 | bps | | | | 8.1 | % | | 8.5 | % | -40 | bps |
Finance and Insurance, Net | | | 0.8 | % | | 0.7 | % | +10 | bps | | | | 0.9 | % | | 0.8 | % | +10 | bps |
Service and Parts | | | 24.8 | % | | 26.3 | % | -150 | bps | | | | 26.5 | % | | 31.1 | % | -460 | bps |
Other | | | 1.2 | % | | 0.6 | % | +60 | bps | | | | 1.4 | % | | 1.1 | % | +30 | bps |
Total | | | 100.0 | % | | 100.0 | % | | | | | | 100.0 | % | | 100.0 | % | | |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Gross Profit Mix Percentages: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | | 23.0 | % | | 21.5 | % | +150 | bps | | | | 19.3 | % | | 16.3 | % | +300 | bps |
Used Vehicles | | | 5.3 | % | | 5.8 | % | -50 | bps | | | | 6.0 | % | | 5.2 | % | +80 | bps |
Finance and Insurance, Net | | | 5.3 | % | | 5.1 | % | +20 | bps | | | | 5.6 | % | | 5.4 | % | +20 | bps |
Service and Parts | | | 63.1 | % | | 67.8 | % | -470 | bps | | | | 66.6 | % | | 73.2 | % | -660 | bps |
Other | | | 3.3 | % | | (0.2) | % | +350 | bps | | | | 2.5 | % | | (0.1) | % | +260 | bps |
Total | | | 100.0 | % | | 100.0 | % | | | | | | 100.0 | % | | 100.0 | % | | |
| | |
| 12 |
|
PENSKE AUTOMOTIVE GROUP, INC.
Retail Commercial Truck Operations Same-Store
(Unaudited)
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | | Twelve Months Ended |
| | December 31, | | | December 31, |
| | 2018 | | 2017 | | Change | | | 2018 | | 2017 | | Change |
Retail Commercial Truck Same-Store Units: | | | | | | | | | | | | | | | | | | | |
New Retail | | | 2,161 | | | 1,892 | | 14.2 | % | | | | 8,200 | | | 5,952 | | 37.8 | % |
Used Retail | | | 457 | | | 402 | | 13.7 | % | | | | 1,971 | | | 1,632 | | 20.8 | % |
Total | | | 2,618 | | | 2,294 | | 14.1 | % | | | | 10,171 | | | 7,584 | | 34.1 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Same-Store Revenue: (Amounts in Millions) | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 233.5 | | $ | 201.7 | | 15.8 | % | | | $ | 854.3 | | $ | 613.2 | | 39.3 | % |
Used Vehicles | | | 25.7 | | | 21.5 | | 19.5 | % | | | | 111.9 | | | 89.4 | | 25.2 | % |
Finance and Insurance, Net | | | 2.9 | | | 2.3 | | 26.1 | % | | | | 10.1 | | | 8.9 | | 13.5 | % |
Service and Parts | | | 87.2 | | | 81.0 | | 7.7 | % | | | | 359.9 | | | 325.6 | | 10.5 | % |
Other | | | 4.4 | | | 1.7 | | 158.8 | % | | | | 14.3 | | | 10.9 | | 31.2 | % |
Total Revenue | | $ | 353.7 | | $ | 308.2 | | 14.8 | % | | | $ | 1,350.5 | | $ | 1,048.0 | | 28.9 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Same-Store Gross Profit: (Amounts in Millions) | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 12.3 | | $ | 9.7 | | 26.8 | % | | | $ | 40.0 | | $ | 27.1 | | 47.6 | % |
Used Vehicles | | | 2.9 | | | 2.6 | | 11.5 | % | | | | 12.7 | | | 8.7 | | 46.0 | % |
Finance and Insurance, Net | | | 2.9 | | | 2.3 | | 26.1 | % | | | | 10.1 | | | 8.9 | | 13.5 | % |
Service and Parts | | | 33.8 | | | 30.6 | | 10.5 | % | | | | 138.7 | | | 121.4 | | 14.3 | % |
Other | | | 1.8 | | | (0.1) | | nm | | | | | 0.6 | | | (0.3) | | nm | |
Total Gross Profit | | $ | 53.7 | | $ | 45.1 | | 19.1 | % | | | $ | 202.1 | | $ | 165.8 | | 21.9 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Same-Store Revenue Per Vehicle Retailed: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 108,073 | | $ | 106,648 | | 1.3 | % | | | $ | 104,179 | | $ | 103,022 | | 1.1 | % |
Used Vehicles | | | 56,183 | | | 53,739 | | 4.5 | % | | | | 56,782 | | | 54,808 | | 3.6 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Same-Store Gross Profit Per Vehicle Retailed: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 5,714 | | $ | 5,009 | | 14.1 | % | | | $ | 4,873 | | $ | 4,550 | | 7.1 | % |
Used Vehicles | | | 6,243 | | | 6,558 | | (4.8) | % | | | | 6,418 | | | 5,317 | | 20.7 | % |
Finance and Insurance | | | 1,111 | | | 1,025 | | 8.4 | % | | | | 993 | | | 1,178 | | (15.7) | % |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Same-Store Gross Margin: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | | 5.3 | % | | 4.8 | % | +50 | bps | | | | 4.7 | % | | 4.4 | % | +30 | bps |
Used Vehicles | | | 11.3 | % | | 12.1 | % | -80 | bps | | | | 11.3 | % | | 9.7 | % | +160 | bps |
Service and Parts | | | 38.8 | % | | 37.8 | % | +100 | bps | | | | 38.5 | % | | 37.3 | % | +120 | bps |
Total Gross Margin | | | 15.2 | % | | 14.6 | % | +60 | bps | | | | 15.0 | % | | 15.8 | % | -80 | bps |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Revenue Mix Percentages: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | | 66.0 | % | | 65.4 | % | +60 | bps | | | | 63.3 | % | | 58.5 | % | +480 | bps |
Used Vehicles | | | 7.3 | % | | 7.0 | % | +30 | bps | | | | 8.3 | % | | 8.5 | % | -20 | bps |
Finance and Insurance, Net | | | 0.8 | % | | 0.7 | % | +10 | bps | | | | 0.7 | % | | 0.8 | % | -10 | bps |
Service and Parts | | | 24.7 | % | | 26.3 | % | -160 | bps | | | | 26.6 | % | | 31.1 | % | -450 | bps |
Other | | | 1.2 | % | | 0.6 | % | +60 | bps | | | | 1.1 | % | | 1.1 | % | --- | bps |
Total | | | 100.0 | % | | 100.0 | % | | | | | | 100.0 | % | | 100.0 | % | | |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Gross Profit Mix Percentages: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | | 22.9 | % | | 21.5 | % | +140 | bps | | | | 19.8 | % | | 16.3 | % | +350 | bps |
Used Vehicles | | | 5.4 | % | | 5.8 | % | -40 | bps | | | | 6.3 | % | | 5.2 | % | +110 | bps |
Finance and Insurance, Net | | | 5.4 | % | | 5.1 | % | +30 | bps | | | | 5.0 | % | | 5.4 | % | -40 | bps |
Service and Parts | | | 62.9 | % | | 67.8 | % | -490 | bps | | | | 68.6 | % | | 73.2 | % | -460 | bps |
Other | | | 3.4 | % | | (0.2) | % | +360 | bps | | | | 0.3 | % | | (0.1) | % | +40 | bps |
Total | | | 100.0 | % | | 100.0 | % | | | | | | 100.0 | % | | 100.0 | % | | |
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PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Non-GAAP Reconciliations
(Unaudited)
The following tables reconcile reported income from continuing operations and earnings per share to adjusted income from continuing operations and adjusted earnings per share for the three and twelve months ended December 31, 2018 and 2017:
Income from Continuing Operations:
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | | Twelve Months Ended | |
| | December 31, | | | December 31, | |
(Amounts in Millions) | | 2018 | | | 2017 | | % Change | | | 2018 | | | 2017 | | % Change | |
| | | | | | | | | | | | | | | | | | | | |
Income from Continuing Operations | | $ | 97.8 | | | $ | 330.0 | | (70.4) | % | | $ | 470.5 | | | $ | 613.5 | | (23.3) | % |
Less: Income tax benefit (1) | | | — | | | | (243.4) | | nm | | | | (11.6) | | | | (243.4) | | (95.2) | |
Less: Net gain on dealership sales | | | (8.2) | | | | — | | nm | | | | (22.7) | | | | — | | nm | |
Add: Valuation adjustments and termination of franchises (2) | | | 5.3 | | | | — | | nm | | | | 18.7 | | | | — | | nm | |
Adjusted Income from Continuing Operations | | $ | 94.9 | | | $ | 86.6 | | 9.6 | % | | $ | 454.9 | | | $ | 370.1 | | 22.9 | % |
Earnings Per Share:
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | | Twelve Months Ended | |
| | December 31, | | | December 31, | |
| | 2018 | | | 2017 | | % Change | | | 2018 | | | 2017 | | % Change | |
| | | | | | | | | | | | | | | | | | | | |
Earnings Per Share from Continuing Operations | | $ | 1.15 | | | $ | 3.85 | | (70.1) | % | | $ | 5.52 | | | $ | 7.14 | | (22.7) | % |
Less: Income tax benefit (1) | | | — | | | | (2.84) | | nm | | | | (0.14) | | | | (2.83) | | (95.1) | |
Less: Net gain on dealership sales | | | (0.10) | | | | — | | nm | | | | (0.27) | | | | — | | nm | |
Add: Valuation adjustments and termination of franchises (2) | | | 0.06 | | | | — | | nm | | | | 0.22 | | | | — | | nm | |
Adjusted Earnings Per Share from Continuing Operations | | $ | 1.11 | | | $ | 1.01 | | 9.9 | % | | $ | 5.34 | (3) | | $ | 4.31 | | 23.9 | % |
nm – not meaningful
(1) Amount for 2018 relates to the final reconciliation of the income tax benefit related to the enactment of the 2017 U.S. Tax Cuts and Jobs Act. Amount for 2017 represents the initial income tax benefit from the enactment of the 2017 U.S. Tax Cuts and Jobs Act.
(2) Valuation adjustments on certain franchised dealerships.
(3) Earnings per share amounts may not sum due to rounding.
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The following tables reconcile reported net income to earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the three and twelve months ended December 31, 2018 and 2017:
| | | | | | | | | | | | |
| | Three Months Ended | | | | | | |
| | December 31, | | 2018 vs. 2017 |
(Amounts in Millions) | | 2018 | | 2017 | | Change | | % Change |
| | | | | | | | | | | | |
Net Income | | $ | 97.2 | | $ | 328.6 | | $ | (231.4) | | (70.4) | % |
Add: Depreciation | | | 26.5 | | | 25.1 | | | 1.4 | | 5.6 | % |
Other Interest Expense | | | 28.0 | | | 28.2 | | | (0.2) | | (0.7) | % |
Income Taxes (1) | | | 29.6 | | | (200.8) | | | 230.4 | | 114.7 | % |
(Income) from Discontinued Operations, net of tax | | | (0.3) | | | (0.1) | | | (0.2) | | nm | |
EBITDA | | $ | 181.0 | | $ | 181.0 | | $ | — | | — | % |
Less: Net gain on dealership sales | | | (8.2) | | | — | | | (8.2) | | nm | |
Add: Valuation adjustments and termination of franchises (2) | | | 5.3 | | | — | | | 5.3 | | nm | |
Adjusted EBITDA | | $ | 178.1 | | $ | 181.0 | | $ | (2.9) | | (1.6) | % |
| | | | | | | | | | | | |
| | Twelve Months Ended | | | | | | |
| | December 31, | | 2018 vs. 2017 |
(Amounts in Millions) | | 2018 | | 2017 | | Change | | % Change |
| | | | | | | | | | | | |
Net Income | | $ | 470.3 | | $ | 612.8 | | $ | (142.5) | | (23.3) | % |
Add: Depreciation | | | 103.7 | | | 95.1 | | | 8.6 | | 9.0 | % |
Other Interest Expense | | | 114.7 | | | 107.4 | | | 7.3 | | 6.8 | % |
Income Taxes (1) | | | 134.3 | | | (64.8) | | | 199.1 | | 307.3 | % |
(Income) Loss from Discontinued Operations, net of tax | | | (0.5) | | | 0.2 | | | (0.7) | | nm | |
EBITDA | | $ | 822.5 | | $ | 750.7 | | $ | 71.8 | | 9.6 | % |
Less: Net gain on dealership sales | | | (22.7) | | | — | | | (22.7) | | nm | |
Add: Valuation adjustments and termination of franchises (2) | | | 18.7 | | | — | | | 18.7 | | nm | |
Adjusted EBITDA | | $ | 818.5 | | $ | 750.7 | | $ | 67.8 | | 9.0 | % |
nm – not meaningful
(1) Amount for 2018 includes a tax benefit of $11.6 million for the final reconciliation of the income tax benefit related to the enactment of the 2017 U.S. Tax Cuts and Jobs Act. Amount for 2017 includes a tax benefit of $243.4 million for the initial income tax benefit from the enactment of the 2017 U.S. Tax Cuts and Jobs Act.
(2) Valuation adjustments on certain franchised dealerships.
# # # # # # #
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