Income from Continuing Operations Attributable to Common Shareholders Increases 4.5% to $72.7 Million as Compared to Adjusted 2014
Income from Continuing Operations Attributable to Common Shareholders Increases 13.0% to $329.6 Million as Compared to Adjusted 2014
Earnings Per Share from Continuing Operations Attributable to Common Shareholders Increases 3.8% to $0.81 as Compared to Adjusted 2014
Earnings Per Share from Continuing Operations Attributable to Common Shareholders Increases 13.6% to $3.67 as Compared to Adjusted 2014
EBITDA Increases 5% to $144.2 Million as Compared to Adjusted 2014
EBITDA Increases 13.2% to $639.3 Million as Compared to Adjusted 2014
BLOOMFIELD HILLS, MI,February 11, 2016 –Penske Automotive Group, Inc. (NYSE:PAG), an international transportation services company, announced today record fourth quarter and full year results as compared to adjusted 2014. For the three months ended December 31, 2015, income from continuing operations attributable to common shareholders increased 4.5% to $72.7 million, and related earnings per share increased 3.8% to $0.81 when compared to adjusted figures in the same period last year. Income from continuing operations and related earnings per share for the three and twelve months ended December 31, 2014, excludes a $16.0 million ($9.7 million after-tax) gain on investment. Total automotive retail units increased 11.9% and total revenue increased 11.2% to $4.9 billion. Excluding foreign exchange, total revenue increased 14.0%. Same-store retail revenue increased 3.6%. Excluding foreign exchange, same-store retail revenue increased 5.4%.
“The diversification provided by our business model continues to drive our business forward,” said Penske Automotive Group Chairman Roger S. Penske. “Our U.K.-based retail automotive and U.S.-based commercial truck businesses produced exceptional results, and the stability of the parts and service business helped our business produce another solid quarter. We expect 2016 will be another solid year for both automotive and U.S. commercial truck sales.”
Same-Store Automotive Retail Highlights of the Fourth Quarter
Same-Store Retail Unit Sales Increased 2.4% to 100,730
New unit retail sales +2.5% Used unit retail sales +2.3%
Same-Store Retail Revenue Increased 3.6%
New +1.7%; Used +6.2%; Finance & Insurance +15.4%; Service and Parts +3.2% +1.8% in the United States; +6.8% Internationally Excluding f/x, same-store retail revenue increased 5.4%
Same-Store Average Transaction Price Per Unit
New $40,418; -0.8% Used $28,157; +3.8%
Same-Store Average Gross Profit Per Unit
New $3,047, -$146; Gross Margin 7.5%, -30 basis points
For the twelve months ended December 31, 2015, total revenue increased 11.9% to $19.3 billion, including a 4.8% increase in same-store retail revenue. Excluding foreign exchange, total revenue increased 16.0%, while same-store retail revenue increased 8.3%. Total retail unit volume increased 8.3%, including 4.9% on a same-store basis. Income from continuing operations attributable to common shareholders increased 13.0% to $329.6 million and related earnings per share increased 13.6% to $3.67 when compared to adjusted figures in the same period last year as shown in the attached tables. For the twelve months ended December 31, 2015, exchange rates negatively impacted earnings per share attributable to common shareholders by $0.14.
U.S. Commercial Truck Operations
The company operates fourteen U.S. commercial truck dealerships under the “Premier Truck Group” brand name, including ten full-service dealerships offering primarily the Freightliner and Western Star brands. For the three months and twelve months ended December 31, 2015, Premier Truck Group generated $241.0 million and $944.1 million of revenue, and $35.9 million and $147.0 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 72.7% and 71.8% of total Premier Truck Group gross profit, respectively.
Share Repurchases
During the three months ended December 31, 2015, the company acquired 571,313 shares of its common stock for approximately $27.0 million. For the twelve months ended December 31, 2015, the company acquired 854,313 shares of its common stock for $40.9 million. In December 2015, the company’s Board of Directors increased the authorization to repurchase shares, and as a result, the company has a current share repurchase authorization of approximately $200.0 million.
Acquisitions Update
For the twelve months ended December 31, 2015, the company acquired retail automotive franchises and U.S. commercial truck dealerships that are expected to generate approximately $500 million in estimated annualized revenue. In addition, the company acquired an additional 10% ownership interest in one of our Germany-based automotive joint ventures resulting in us owning 60% of this joint venture. As a result, we began consolidating an additional 27 dealerships into our financial results representing approximately $690 million in estimated annualized revenue.
Conference Call
Penske Automotive will host a conference call discussing financial results relating to the fourth quarter of 2015 onFebruary 11, 2016, at2:00 p.m. Eastern Standard Time. To listen to the conference call, participants must dial(800) 230-1093 — [International, please dial (612) 332-0107]. 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 fourth 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 towww.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 atwww.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 adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted 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 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, 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’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
# # #
1
PENSKE AUTOMOTIVE GROUP, INC. Consolidated Condensed Statements of Income (Amounts In Millions, Except Per Share Data) (Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
Increase/
Increase/
2015
2014
(Decrease)
2015
2014
(Decrease)
Revenue
$
4,921.3
$
4,425.6
11.2
%
$
19,284.9
$
17,232.0
11.9
%
Cost of Sales
4,204.2
3,765.5
11.7
%
16,417.4
14,652.8
12.0
%
Gross Profit
$
717.1
$
660.1
8.6
%
$
2,867.5
$
2,579.2
11.2
%
SG&A Expenses
570.7
522.6
9.2
%
2,223.0
2,008.6
10.7
%
Depreciation
20.3
19.6
3.6
%
78.0
70.2
11.1
%
Operating Income
$
126.1
$
117.9
7.0
%
$
566.5
$
500.4
13.2
%
Floor Plan Interest Expense
(11.8
)
(12.3
)
-4.1
%
(44.5
)
(46.5
)
-4.3
%
Other Interest Expense
(20.4
)
(15.6
)
30.8
%
(69.4
)
(52.8
)
31.4
%
Gain on Investment
—
16.0
nm
—
16.0
nm
Equity in Earnings of Affiliates
9.6
12.1
-20.7
%
39.3
40.8
-3.7
%
Income from Continuing Operations Before Income Taxes
$
103.5
$
118.1
-12.4
%
$
491.9
$
457.9
7.4
%
Income Taxes
(29.8
)
(37.4
)
-20.3
%
(158.0
)
(153.1
)
3.2
%
Income from Continuing Operations
$
73.7
$
80.7
-8.7
%
$
333.9
$
304.8
9.5
%
Loss from Discontinued Operations, net of tax
(2.4
)
(7.5
)
nm
(3.5
)
(14.7
)
nm
Net Income
$
71.3
$
73.2
-2.6
%
$
330.4
$
290.1
13.9
%
Less: Income Attributable to Non-Controlling Interests
1.0
1.4
-28.6
%
4.3
3.4
26.5
%
Net Income Attributable to Common Shareholders
$
70.3
$
71.8
-2.1
%
$
326.1
$
286.7
13.7
%
Amounts Attributable to Common Shareholders:
Reported Income from Continuing Operations
$
73.7
$
80.7
-8.7
%
$
333.9
$
304.8
9.5
%
Less: Income Attributable to Non-Controlling Interests
1.0
1.4
-28.6
%
4.3
3.4
26.5
%
Income from Continuing Operations, net of tax
$
72.7
$
79.3
-8.3
%
$
329.6
$
301.4
9.4
%
Loss from Discontinued Operations, net of tax
(2.4
)
(7.5
)
nm
(3.5
)
(14.7
)
nm
Net Income Attributable to Common Shareholders
$
70.3
$
71.8
-2.1
%
$
326.1
$
286.7
13.7
%
Income from Continuing Operations Per Share
$
0.81
$
0.88
-8.0
%
$
3.67
$
3.34
9.9
%
Income Per Share
$
0.78
$
0.80
-2.5
%
$
3.63
$
3.17
14.5
%
Weighted Average Shares Outstanding
89.8
90.3
-0.6
%
89.8
90.4
-0.7
%
nm – not meaningful
2
PENSKE AUTOMOTIVE GROUP, INC. Consolidated Condensed Balance Sheets (Amounts In Millions) (Unaudited)
December 31,
December 31,
2015
2014
Assets:
Cash and Cash Equivalents
$
62.4
$
36.3
Accounts Receivable, Net
782.3
707.1
Inventories
3,463.5
2,836.4
Other Current Assets
86.8
124.8
Assets Held for Sale
13.1
155.6
Total Current Assets
4,408.1
3,860.2
Property and Equipment, Net
1,495.8
1,331.6
Intangibles
1,730.8
1,657.0
Other Long-Term Assets
363.7
379.4
Total Assets
$
7,998.4
$
7,228.2
Liabilities and Equity:
Floor Plan Notes Payable
$
2,247.2
$
1,812.6
Floor Plan Notes Payable – Non-Trade
1,132.4
933.8
Accounts Payable
493.8
422.5
Accrued Expenses
308.5
316.0
Current Portion Long-Term Debt
29.2
37.2
Liabilities Held for Sale
6.2
108.2
Total Current Liabilities
4,217.3
3,630.3
Long-Term Debt
1,255.1
1,316.0
Other Long-Term Liabilities
691.1
600.7
Total Liabilities
6,163.5
5,547.0
Equity
1,834.9
1,681.2
Total Liabilities and Equity
$
7,998.4
$
7,228.2
3
PENSKE AUTOMOTIVE GROUP, INC. Consolidated Operations Selected Data (Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2015
2014
2015
2014
Geographic Revenue Mix:
U.S.
61.7
%
63.5
%
61.2
%
60.6
%
U.K.
30.5
%
31.3
%
33.4
%
34.9
%
Other International
7.8
%
5.2
%
5.4
%
4.5
%
Total
100.0
%
100.0
%
100.0
%
100.0
%
Revenue: (Amounts in Millions)
Retail Automotive
$
4,568.8
$
4,162.2
$
17,896.3
$
16,657.5
U.S. Commercial Trucks
241.0
125.6
944.1
125.6
Commercial Vehicles Australia/Power Systems and Other
111.5
137.8
444.5
448.9
Total
$
4,921.3
$
4,425.6
$
19,284.9
$
17,232.0
Gross Profit: (Amounts in Millions)
Retail Automotive
$
653.7
$
610.3
$
2,608.0
$
2,477.4
U.S. Commercial Trucks
35.9
21.1
147.0
21.1
Commercial Vehicles Australia/Power Systems and Other
27.5
28.7
112.5
80.7
Total
$
717.1
$
660.1
$
2,867.5
$
2,579.2
Gross Margin:
Retail Automotive
14.3
%
14.7
%
14.6
%
14.9
%
U.S. Commercial Trucks
14.9
%
16.8
%
15.6
%
16.8
%
Commercial Vehicles Australia/Power Systems and Other
24.7
%
20.8
%
25.3
%
18.0
%
Total
14.6
%
14.9
%
14.9
%
15.0
%
4
PENSKE AUTOMOTIVE GROUP, INC. Consolidated Operations Selected Data (Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
Increase/
Increase/
2015
2014
(Decrease)
2015
2014
(Decrease)
Operating Items as a Percentage of Revenue:
Gross Profit
14.6
%
14.9
%
-30 bps
14.9
%
15.0
%
-10 bps
Selling, General and Administrative Expenses
11.6%
11.8%
-20 bps
11.5%
11.7%
-20 bps
Operating Income
2.6
%
2.7
%
-10 bps
2.9
%
2.9
%
—
Inc. From Cont. Ops. Before Inc. Taxes
2.1
%
2.7
%
-60 bps
2.6
%
2.7
%
-10 bps
Operating Items as a Percentage of Total Gross Profit:
Selling, General and Administrative Expenses
79.6%
79.2%
+40 bps
77.5%
77.9%
-40 bps
Operating Income
17.6
%
17.9
%
-30 bps
19.8
%
19.4
%
+40 bps
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2015
2014
Increase/ (Decrease)
2015
2014
Increase/ (Decrease)
(Amounts in Millions)
EBITDA*
$
144.2
$
153.3
-5.9
%
$
639.3
$
580.9
10.1
%
Adjusted EBITDA*
$
144.2
$
137.3
5.0
%
$
639.3
$
564.9
13.2
%
Floorplan Credits
$
8.2
$
6.9
18.8
%
$
32.0
$
28.8
11.1
%
Rent Expense
$
51.9
$
49.1
5.7
%
$
201.8
$
191.3
5.5
%
*
See the following Non-GAAP reconciliation table.
5
PENSKE AUTOMOTIVE GROUP, INC. Retail Automotive Operations Selected Data (Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2015
2014
2015
2014
Retail Automotive Units:
New Retail
60,364
54,218
233,524
216,609
Used Retail
49,741
44,136
198,459
182,109
Total
110,105
98,354
431,983
398,718
Retail Automotive Revenue: (Amounts in Millions)
New Vehicles
$
2,338.4
$
2,209.9
$
9,208.9
$
8,698.8
Used Vehicles
1,364.8
1,197.3
5,425.5
4,971.1
Finance and Insurance, Net
122.2
105.2
478.3
436.0
Service and Parts
472.9
431.9
1,830.7
1,716.9
Fleet and Wholesale
270.5
217.9
952.9
834.7
Total Revenue
$
4,568.8
$
4,162.2
$
17,896.3
$
16,657.5
Retail Automotive Gross Profit: (Amounts in Millions)
New Vehicles
$
184.2
$
173.1
$
706.9
$
674.6
Used Vehicles
70.7
73.1
328.3
335.5
Finance and Insurance, Net
122.2
105.2
478.3
436.0
Service and Parts
273.7
257.8
1,084.0
1,021.6
Fleet and Wholesale
2.9
1.1
10.5
9.7
Total Gross Profit
$
653.7
$
610.3
$
2,608.0
$
2,477.4
Retail Automotive Revenue Per Vehicle Retailed:
New Vehicles
$
38,738
$
40,759
$
39,434
$
40,159
Used Vehicles
27,439
27,128
27,338
27,297
Retail Automotive Gross Profit Per Vehicle Retailed:
New Vehicles
$
3,050
$
3,193
$
3,027
$
3,115
Used Vehicles
1,422
1,656
1,654
1,842
Finance & Insurance
1,110
1,069
1,107
1,093
6
PENSKE AUTOMOTIVE GROUP, INC. Retail Automotive Operations Selected Data (Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2015
2014
2015
2014
Retail Automotive Revenue Mix Percentages:
New Vehicles
51.2
%
53.1
%
51.5
%
52.2
%
Used Vehicles
29.9
%
28.8
%
30.3
%
29.8
%
Finance and Insurance, Net
2.7
%
2.5
%
2.7
%
2.6
%
Service and Parts
10.4
%
10.4
%
10.2
%
10.3
%
Fleet and Wholesale
5.8
%
5.2
%
5.3
%
5.1
%
Total
100.0
%
100.0
%
100.0
%
100.0
%
Retail Automotive Gross Profit Mix Percentages:
New Vehicles
28.2
%
28.4
%
27.1
%
27.2
%
Used Vehicles
10.8
%
12.0
%
12.6
%
13.5
%
Finance and Insurance, Net
18.7
%
17.2
%
18.3
%
17.6
%
Service and Parts
41.9
%
42.2
%
41.6
%
41.2
%
Fleet and Wholesale
0.4
%
0.2
%
0.4
%
0.5
%
Total
100.0
%
100.0
%
100.0
%
100.0
%
Three Months Ended
Twelve Months Ended
December 31,
December 31,
Increase/
Increase/
2015
2014
(Decrease)
2015
2014
(Decrease)
Retail Automotive Gross Margin:
New Vehicles
7.9
%
7.8
%
+10 bps
7.7
%
7.8
%
-10 bps
Used Vehicles
5.2
%
6.1
%
-90 bps
6.1
%
6.7
%
-60 bps
Service and Parts
57.9
%
59.7
%
-180 bps
59.2
%
59.5
%
-30 bps
Fleet and Wholesale
1.1
%
0.5
%
+60 bps
1.1
%
1.2
%
-10 bps
Total Gross Margin
14.3
%
14.7
%
-40 bps
14.6
%
14.9
%
-30 bps
7
PENSKE AUTOMOTIVE GROUP, INC.
Retail Automotive Operations Selected Data (Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2015
2014
2015
2014
Retail Automotive Revenue Mix:
Premium:
BMW / MINI
27
%
28
%
27
%
27
%
Audi
13
%
13
%
13
%
13
%
Mercedes-Benz
10
%
11
%
10
%
11
%
Land Rover
7
%
5
%
6
%
5
%
Porsche
5
%
5
%
5
%
5
%
Lexus
4
%
4
%
4
%
4
%
Ferrari / Maserati
2
%
3
%
3
%
3
%
Acura
1
%
1
%
1
%
1
%
Bentley
1
%
1
%
1
%
1
%
Others
2
%
2
%
2
%
2
%
Total Premium
72
%
73
%
72
%
72
%
Volume Non-U.S.:
Toyota
11
%
11
%
11
%
11
%
Honda
7
%
7
%
7
%
8
%
Volkswagen
3
%
2
%
3
%
2
%
Nissan
1
%
1
%
1
%
1
%
Others
2
%
2
%
2
%
2
%
Total Volume Non-U.S.
24
%
23
%
24
%
24
%
U.S.:
General Motors / Chrysler / Ford
4
%
4
%
4
%
4
%
Total
100
%
100
%
100
%
100
%
Retail Automotive Geographic Revenue Mix:
U.S.
61.1
%
64.4
%
60.6
%
61.8
%
U.K.
32.9
%
33.3
%
36.0
%
36.1
%
Other International
6.0
%
2.3
%
3.4
%
2.1
%
Total
100.0
%
100.0
%
100.0
%
100.0
%
8
PENSKE AUTOMOTIVE GROUP, INC. Retail Automotive Operations Same-Store Selected Data (Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2015
2014
2015
2014
Retail Automotive Same-Store Units:
New Retail
55,580
54,218
223,692
213,798
Used Retail
45,150
44,136
189,548
180,155
Total
100,730
98,354
413,240
393,953
Retail Automotive Same-Store Revenue: (Amounts in Millions)
New Vehicles
$
2,246.4
$
2,209.9
$
8,917.2
$
8,573.0
Used Vehicles
1,271.3
1,197.3
5,233.3
4,924.9
Finance and Insurance, Net
121.4
105.2
471.6
432.2
Service and Parts
445.8
431.9
1,759.6
1,693.9
Fleet and Wholesale
267.2
217.8
935.9
828.6
Total Revenue
$
4,352.1
$
4,162.1
$
17,317.6
$
16,452.6
Retail Automotive Same-Store Gross Profit: (Amounts in Millions)
New Vehicles
$
169.4
$
173.1
$
676.5
$
666.5
Used Vehicles
69.6
73.1
322.4
332.8
Finance and Insurance, Net
121.4
105.2
471.6
432.2
Service and Parts
263.5
257.7
1,051.7
1,008.9
Fleet and Wholesale
2.8
1.0
10.2
9.5
Total Gross Profit
$
626.7
$
610.1
$
2,532.4
$
2,449.9
Retail Automotive Same-Store Revenue Per Vehicle Retailed:
New Vehicles
$
40,418
$
40,759
$
39,864
$
40,099
Used Vehicles
28,157
27,128
27,609
27,337
Retail Automotive Same-Store Gross Profit Per Vehicle Retailed:
New Vehicles
$
3,047
$
3,193
$
3,024
$
3,117
Used Vehicles
1,541
1,656
1,701
1,847
Finance & Insurance
1,205
1,069
1,141
1,097
9
PENSKE AUTOMOTIVE GROUP, INC. U.S. Commercial Truck Operations Selected Data (Unaudited)
Note: The Company’s Retail U.S. Commercial Truck Operations were acquired in November 2014. The following tables are presented for informational purposes. Same-store results are not applicable for the three month and twelve month periods ending December 31, 2015.
Three Months Ended
Twelve Months Ended
December 31, 2015
December 31, 2015
U.S. Commercial Truck Units:
New Retail
1,622
5,864
Used Retail
233
1,113
Total
1,855
6,977
U.S. Commercial Truck Revenue: (Amounts in Millions)
New Vehicles
$
154.1
$
572.5
Used Vehicles
12.0
58.7
Finance and Insurance, Net
1.7
6.7
Service and Parts
70.0
286.0
Lease, Rental & Wholesale
3.2
20.2
Total Revenue
$
241.0
$
944.1
U.S. Commercial Truck Gross Profit: (Amounts in Millions)
New Vehicles
$
7.2
$
26.8
Used Vehicles
0.6
5.4
Finance and Insurance, Net
1.7
6.7
Service and Parts
26.1
105.5
Lease, Rental & Wholesale
0.3
2.6
Total Gross Profit
$
35.9
$
147.0
U.S. Commercial Truck Revenue Per Vehicle Retailed:
New Vehicles
$
95,020
$
97,629
Used Vehicles
51,295
52,775
U.S. Commercial Truck Gross Profit Per Vehicle Retailed:
New Vehicles
$
4,411
$
4,576
Used Vehicles
2,398
4,810
Finance & Insurance
932
966
10
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 adjusted earnings before interest, taxes, depreciation and amortization (“ADJUSTED EBITDA”) for the three and twelve months ended December 31, 2015, and 2014:
Three Months Ended
Twelve Months Ended
December 31,
December 31,
Increase/
Increase/
2015
2014
(Decrease)
2015
2014
(Decrease)
(Amounts in Millions)
Net Income
$
71.3
$
73.2
-2.6
%
$
330.4
$
290.1
13.9
%
Add: Depreciation
20.3
19.6
3.6
%
78.0
70.2
11.1
%
Other Interest Expense
20.4
15.6
30.8
%
69.4
52.8
31.4
%
Income Taxes
29.8
37.4
-20.3
%
158.0
153.1
3.2
%
Loss from Discontinued Operations, net of tax
2.4
7.5
nm
3.5
14.7
nm
EBITDA
$
144.2
$
153.3
-5.9
%
$
639.3
$
580.9
10.1
%
Less: Gain on Investment (1)
—
16.0
nm
—
16.0
nm
Adjusted EBITDA
$
144.2
$
137.3
5.0
%
$
639.3
$
564.9
13.2
%
nm – not meaningful
(1)
Represents a non-cash gain of $16.0 million ($9.7 million after-tax) relating to the revaluation at fair value of a previously held non-controlling interest in our U.S. commercial truck dealership business, of which we acquired a controlling interest in November 2014.
PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Non-GAAP Reconciliations (Unaudited)
The following table reconciles reported income from continuing operations to adjusted income from continuing operations for the three and twelve months ended December 31, 2015 and 2014:
Three Months
Twelve Months
Ended December 31,
Ended December 31,
Increase/
Increase/
2015
2014
(Decrease)
2015
2014
(Decrease)
Income From Continuing Operations: (Amounts in Millions)
Reported Income from Continuing Operations
$
72.7
$
79.3
-8.3
%
$
329.6
$
301.4
9.4
%
Less: Gain on Investment (1)
—
9.7
nm
—
9.7
nm
Adjusted Income from Continuing Operations
$
72.7
69.6
4.5
%
$
329.6
$
291.7
13.0
%
Earnings Per Share (2):
Reported Earnings Per Share from Continuing Operations
$0.81
$0.88
-8.0%
$3.67
$3.34
9.9%
Less: Gain on Investment (1)
—
0.10
nm
—
0.10
nm
Adjusted Earnings Per Share from Continuing Operations
$0.81
$0.78
3.8%
$3.67
$3.23
13.6%
nm – not meaningful
(1)
Represents a non-cash gain of $16.0 million ($9.7 million after-tax) relating to the revaluation at fair value of a previously held non-controlling interest in our U.S. commercial truck dealership business, of which we acquired a controlling interest in November 2014.
(2)
Earnings per share amounts may not add up to total due to rounding.
# # # # # # #
11
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