Income from Continuing Operations Attributable to Common Shareholders Increases 1% to $87.4 Million, Excluding Foreign Exchange Increases 8.0%
Income from Continuing Operations Attributable to Common Shareholders Increases 1.8% to $261.4 Million, Excluding Foreign Exchange Increases 6.1%
Earnings Per Share from Continuing Operations Attributable to Common Shareholders Increases 7.3% to $1.03, Excluding Foreign Exchange Increases 14.6%
Earnings Per Share from Continuing Operations Attributable to Common Shareholders Increases 6.3% to $3.03, Excluding Foreign Exchange Increases 10.9%
EBITDA Increases 6.8% to $176.7 Million
EBITDA Increases 5.4% to $521.8 Million
BLOOMFIELD HILLS, MI,October 26, 2016 –Penske Automotive Group, Inc. (NYSE:PAG), an international transportation services company, announced today record third quarter and nine-month results. For the three months ended September 30, 2016, income from continuing operations attributable to common shareholders increased 1% to $87.4 million, and related earnings per share increased 7.3% to $1.03, when compared to the same period last year. Total automotive retail units increased 5.8% and total revenue increased 3.9% to $5.2 billion. Excluding foreign exchange, total revenue increased 9.7%. Same-store retail revenue declined 2.0%. Excluding foreign exchange, same-store retail revenue increased 4.1%. Foreign exchange rates negatively impacted earnings per share attributable to common shareholders by $0.07 for the three months ended September 30, 2016.
Commenting on the company’s results, Penske Automotive Group Chairman Roger S. Penske said, “Our business continued to perform well in the third quarter, producing another quarter of record results despite the translation effects from foreign currency headwinds. I was particularly pleased to see new and used gross profit per unit increase in the U.S. by $52 and $179, respectively. Further, the Brexit vote in the U.K. did not impact the company’s performance in the third quarter as our business remained strong, generating a 6.9% increase in their same-store unit volume.”
Automotive Retail Highlights of the Third Quarter
Retail Unit Sales +5.8% to 118,522
New unit retail sales +8.1% Used unit retail sales +2.9%
Same-Store Retail Unit Sales -0.3% to 109,110
New unit retail sales +0.4% Used unit retail sales -1.1%
Same-Store Retail Revenue -2.0%,
New -2.9%; Used -2.1%; Finance & Insurance +2.3%; Service and Parts +1.8% Excluding f/x, New+ 2.7%; Used +5.5%; Finance & Insurance +8.5%; Service and Parts +6.2%
Average Gross Profit Per Unit
New $2,691, -$225/unit; Gross Margin 7.3%, -20 basis points
For the nine months ended September 30, 2016, total revenue increased 6.0% to $15.2 billion. Excluding foreign exchange, total revenue increased 9.6% to $15.7 billion. Total automotive retail unit volume increased 7.2%, including 0.1% on a same-store basis. Income from continuing operations attributable to common shareholders increased 1.8% to $261.4 million and related earnings per share increased 6.3% to $3.03 when compared to the same period last year. Foreign exchange rates negatively impacted earnings per share attributable to common shareholders by $0.13.
Retail Commercial Truck Operations
The company operates nineteen locations, including fourteen full-service dealerships, under the “Premier Truck Group” brand name, offering primarily the Freightliner and Western Star brands. For the three months and nine months ended September 30, 2016, Premier Truck Group retailed 1,894 and 5,548 units, generated $266.1 million and $782.3 million of revenue, and $38.2 million and $109.7 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 78.5% and 78.1% of total Premier Truck Group gross profit for the three and nine months ended September 30, 2016, respectively.
Acquisitions
As previously announced, in October 2016, the company expanded its presence in the strategic northern Italy market of Bologna with the acquisition of six franchises (Porsche [3], Audi, Land Rover and Volvo), which are expected to generate approximately $200 million in revenue on an annualized basis. Further, in July 2016, the company acquired twelve franchises (VW (7), Audi, BMW, MINI, SEAT, Skoda) in the U.K. which are expected to generate approximately $250 million in revenue on an annualized basis.
Also, as previously announced, in July 2016, the company acquired an additional 14.4% interest in Penske Truck Leasing Co., L.P. (“PTL”), from subsidiaries of GE Capital Global Holdings, LLC and now holds a 23.4% ownership interest and will continue to account for the ownership interest using the equity method of accounting. By acquiring the additional interest in PTL, the company expects to realize accretion to earnings per share and additional cash flow from cash tax savings and the annual cash distributions PTL provides to its partners. We estimate the transaction will provide at least $0.25 per share in earnings accretion on an annualized basis as well as significant cash tax savings heavily weighted to the first few years of the investment.
Conference Call
Penske Automotive will host a conference call discussing financial results relating to the third quarter of 2016 onWednesday, October 26, 2016, at2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial(800) 230-1059 — [International, please dial (612) 234-9959]. 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 third quarter 2016 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, 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 23,000 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”). 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 accretion 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, 2015, 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
Nine Months Ended
September 30,
September 30,
Increase/
Increase/
2016
2015
(Decrease)
2016
2015
(Decrease)
Revenue
$
5,152.0
$
4,960.1
3.9
%
$
15,230.7
$
14,363.6
6.0
%
Cost of Sales
4,407.8
4,230.9
4.2
%
12,991.4
12,213.2
6.4
%
Gross Profit
744.2
729.2
2.1
%
2,239.3
2,150.4
4.1
%
SG&A Expenses
581.2
563.4
3.2
%
1,722.8
1,652.3
4.3
%
Depreciation
21.5
19.8
8.6
%
66.8
57.7
15.8
%
Operating Income
$
141.5
$
146.0
(3.1
%)
$
449.7
$
440.4
2.1
%
Floor Plan Interest Expense
(11.9
)
(11.4
)
4.4
%
(37.8
)
(32.7
)
15.6
%
Other Interest Expense
(25.1
)
(16.3
)
54.0
%
(61.8
)
(49.0
)
26.1
%
Equity in Earnings of Affiliates
25.6
11.0
132.7
%
43.1
29.7
45.1
%
Income from Continuing Operations Before Income Taxes
$
130.1
$
129.3
0.6
%
$
393.2
$
388.4
1.2
%
Income Taxes
(41.7
)
(41.7
)
—
(128.4
)
(128.2
)
0.2
%
Income from Continuing Operations
$
88.4
$
87.6
0.9
%
$
264.8
$
260.2
1.8
%
Income/(Loss) from Discontinued Operations, net of tax
0.1
(0.1
)
nm
(1.1
)
(1.1
)
—
Net Income
$
88.5
$
87.5
1.1
%
$
263.7
$
259.1
1.8
%
Less: Income Attributable to Non-Controlling Interests
1.0
0.9
11.1
%
3.4
3.3
3.0
%
Net Income Attributable to Common Shareholders
$
87.5
$
86.6
1.0
%
$
260.3
$
255.8
1.8
%
Amounts Attributable to Common Shareholders:
Reported Income from Continuing Operations
$
88.4
$
87.6
0.9
%
$
264.8
$
260.2
1.8
%
Less: Income Attributable to Non-Controlling Interests
1.0
0.9
11.1
%
3.4
3.3
3.0
%
Income from Continuing Operations, net of tax
$
87.4
$
86.7
0.8
%
$
261.4
$
256.9
1.8
%
Income/(Loss) from Discontinued Operations, net of tax
0.1
(0.1
)
nm
(1.1
)
(1.1
)
—
Net Income Attributable to Common Shareholders
$
87.5
$
86.6
1.0
%
$
260.3
$
255.8
1.8
%
Income from Continuing Operations Per Share
$
1.03
$
0.96
7.3
%
$
3.03
$
2.85
6.3
%
Income Per Share
$
1.03
$
0.96
7.3
%
$
3.02
$
2.84
6.3
%
Weighted Average Shares Outstanding
85.2
90.1
(5.4
%)
86.3
90.2
(4.3
%)
nm – not meaningful
2
PENSKE AUTOMOTIVE GROUP, INC. Consolidated Condensed Balance Sheets (Amounts In Millions) (Unaudited)
September 30,
December 31,
2016
2015
Assets:
Cash and Cash Equivalents
$
89.4
$
62.4
Accounts Receivable, Net
853.9
782.3
Inventories
3,279.7
3,463.5
Other Current Assets
105.3
85.6
Assets Held for Sale
7.5
12.7
Total Current Assets
4,335.8
4,406.5
Property and Equipment, Net
1,587.8
1,520.1
Intangibles
1,725.2
1,731.2
Other Long-Term Assets
910.6
355.6
Total Assets
$
8,559.4
$
8,013.4
Liabilities and Equity:
Floor Plan Notes Payable
$
2,073.2
$
2,247.2
Floor Plan Notes Payable – Non-Trade
1,145.1
1,132.4
Accounts Payable
506.1
493.8
Accrued Expenses
389.2
378.1
Current Portion Long-Term Debt
44.1
28.0
Liabilities Held for Sale
5.1
6.2
Total Current Liabilities
4,162.8
4,285.7
Long-Term Debt
1,833.5
1,247.0
Other Long-Term Liabilities
774.4
645.8
Total Liabilities
6,770.7
6,178.5
Equity
1,788.7
1,834.9
Total Liabilities and Equity
$
8,559.4
$
8,013.4
3
PENSKE AUTOMOTIVE GROUP, INC. Consolidated Operations Selected Data (Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2016
2015
2016
2015
Geographic Revenue Mix:
North America
60
%
61
%
59
%
61
%
U.K.
33
%
34
%
34
%
34
%
Other International
7
%
5
%
7
%
5
%
Total
100
%
100
%
100
%
100
%
Revenue: (Amounts in Millions)
Retail Automotive
$
4,772.1
$
4,585.8
$
14,121.8
$
13,327.5
Retail Commercial Trucks
266.1
268.5
782.3
703.1
Commercial Vehicles Australia/Power Systems and Other
113.8
105.8
326.6
333.0
Total
$
5,152.0
$
4,960.1
$
15,230.7
$
14,363.6
Gross Profit: (Amounts in Millions)
Retail Automotive
$
674.7
$
662.4
$
2,041.7
$
1,954.3
Retail Commercial Trucks
38.2
40.0
109.7
111.1
Commercial Vehicles Australia/Power Systems and Other
31.3
26.8
87.9
85.0
Total
$
744.2
$
729.2
$
2,239.3
$
2,150.4
Gross Margin:
Retail Automotive
14.1
%
14.4
%
14.5
%
14.7
%
Retail Commercial Trucks
14.4
%
14.9
%
14.0
%
15.8
%
Commercial Vehicles Australia/Power Systems and Other
27.5
%
25.3
%
26.9
%
25.5
%
Total
14.4
%
14.7
%
14.7
%
15.0
%
4
PENSKE AUTOMOTIVE GROUP, INC. Consolidated Operations Selected Data (Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
Increase/
Increase/
2016
2015
(Decrease)
2016
2015
(Decrease)
Operating Items as a Percentage of Revenue:
Gross Profit
14.4
%
14.7
%
-30 bps
14.7
%
15.0
%
-30 bps
Selling, General and Administrative Expenses
11.3
%
11.4
%
-10 bps
11.3
%
11.5
%
-20 bps
Operating Income
2.7
%
2.9
%
-20 bps
3.0
%
3.1
%
-10 bps
Inc. From Cont. Ops. Before Inc. Taxes
2.5
%
2.6
%
-10 bps
2.6
%
2.7
%
-10 bps
Operating Items as a Percentage of Total Gross Profit:
Selling, General and Administrative Expenses
78.1
%
77.3
%
+80 bps
76.9
%
76.8
%
+10 bps
Operating Income
19.0
%
20.0
%
-100 bps
20.1
%
20.5
%
-40 bps
Three Months Ended
Nine Months Ended
September 30,
September 30,
2016
2015
Increase/ (Decrease)
2016
2015
Increase/ (Decrease)
(Amounts in Millions)
EBITDA*
$
176.7
$
165.4
6.8
%
$
521.8
$
495.1
5.4
%
Floorplan Credits
$
10.2
$
8.8
15.9
%
$
29.3
$
23.8
23.1
%
Rent Expense
$
50.9
$
50.6
0.6
%
$
154.3
$
149.9
2.9
%
*
See the following Non-GAAP reconciliation table.
5
PENSKE AUTOMOTIVE GROUP, INC. Retail Automotive Operations Selected Data (Unaudited)
��
Three Months Ended
Nine Months Ended
September 30,
September 30,
2016
2015
2016
2015
Retail Automotive Units:
New Retail
65,986
61,041
186,909
173,160
Used Retail
52,536
51,031
158,213
148,718
Total
118,522
112,072
345,122
321,878
Retail Automotive Revenue: (Amounts in Millions)
New Vehicles
$
2,449.2
$
2,382.7
$
7,178.4
$
6,870.5
Used Vehicles
1,440.3
1,394.8
4,331.5
4,060.7
Finance and Insurance, Net
129.0
123.1
373.1
356.1
Service and Parts
492.2
463.3
1,466.5
1,357.8
Fleet and Wholesale
261.4
221.9
772.3
682.4
Total Revenue
$
4,772.1
$
4,585.8
$
14,121.8
$
13,327.5
Retail Automotive Gross Profit: (Amounts in Millions)
New Vehicles
$
177.6
$
178.0
$
546.2
$
522.7
Used Vehicles
83.7
84.3
257.8
257.6
Finance and Insurance, Net
129.0
123.1
373.1
356.1
Service and Parts
280.9
275.2
851.0
810.3
Fleet and Wholesale
3.5
1.8
13.6
7.6
Total Gross Profit
$
674.7
$
662.4
$
2,041.7
$
1,954.3
Retail Automotive Revenue Per Vehicle Retailed:
New Vehicles
$
37,117
$
39,034
$
38,406
$
39,677
Used Vehicles
27,415
27,332
27,377
27,304
Retail Automotive Gross Profit Per Vehicle Retailed:
New Vehicles
$
2,691
$
2,916
$
2,922
$
3,019
Used Vehicles
1,592
1,652
1,629
1,732
Finance & Insurance
1,088
1,098
1,081
1,106
6
PENSKE AUTOMOTIVE GROUP, INC. Retail Automotive Operations Selected Data (Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2016
2015
2016
2015
Retail Automotive Revenue Mix Percentages:
New Vehicles
51.3
%
52.0
%
50.8
%
51.6
%
Used Vehicles
30.2
%
30.4
%
30.7
%
30.5
%
Finance and Insurance, Net
2.7
%
2.7
%
2.6
%
2.7
%
Service and Parts
10.3
%
10.1
%
10.4
%
10.2
%
Fleet and Wholesale
5.5
%
4.8
%
5.5
%
5.0
%
Total
100.0
%
100.0
%
100.0
%
100.0
%
Retail Automotive Gross Profit Mix Percentages:
New Vehicles
26.3
%
26.9
%
26.8
%
26.7
%
Used Vehicles
12.4
%
12.7
%
12.6
%
13.2
%
Finance and Insurance, Net
19.1
%
18.6
%
18.3
%
18.2
%
Service and Parts
41.6
%
41.5
%
41.7
%
41.5
%
Fleet and Wholesale
0.6
%
0.3
%
0.6
%
0.4
%
Total
100.0
%
100.0
%
100.0
%
100.0
%
Three Months Ended
Nine Months Ended
September 30,
September 30,
Increase/
Increase/
2016
2015
(Decrease)
2016
2015
(Decrease)
Retail Automotive Gross Margin:
New Vehicles
7.3
%
7.5
%
-20 bps
7.6
%
7.6
%
—
Used Vehicles
5.8
%
6.0
%
-20 bps
6.0
%
6.3
%
-30 bps
Service and Parts
57.1
%
59.4
%
-230 bps
58.0
%
59.7
%
-170 bps
Fleet and Wholesale
1.3
%
0.8
%
50 bps
1.8
%
1.1
%
70 bps
Total Gross Margin
14.1
%
14.4
%
-30 bps
14.5
%
14.7
%
-20 bps
7
PENSKE AUTOMOTIVE GROUP, INC. Retail Automotive Operations Selected Data (Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2016
2015
2016
2015
Retail Automotive Revenue Mix:
Premium:
BMW / MINI
25
%
26
%
25
%
26
%
Audi
14
%
13
%
14
%
13
%
Mercedes-Benz
10
%
10
%
10
%
10
%
Land Rover
6
%
6
%
6
%
6
%
Porsche
5
%
5
%
5
%
5
%
Lexus
3
%
4
%
4
%
4
%
Ferrari / Maserati
3
%
3
%
3
%
3
%
Acura
1
%
1
%
1
%
2
%
Bentley
1
%
1
%
1
%
1
%
Others
3
%
2
%
3
%
2
%
Total Premium
71
%
71
%
72
%
72
%
Volume Non-U.S.:
Toyota
11
%
12
%
11
%
12
%
Honda
7
%
7
%
7
%
7
%
Volkswagen
4
%
3
%
3
%
2
%
Nissan
1
%
1
%
1
%
1
%
Others
2
%
2
%
2
%
2
%
Total Volume Non-U.S.
25
%
25
%
24
%
24
%
U.S.:
General Motors / Chrysler / Ford
4
%
4
%
4
%
4
%
Total
100
%
100
%
100
%
100
%
Retail Automotive Geographic Revenue Mix:
U.S.
60
%
60
%
59
%
60
%
U.K.
35
%
37
%
36
%
37
%
Other International
5
%
3
%
5
%
3
%
Total
100
%
100
%
100
%
100
%
Retail Automotive Geographic Gross Profit Mix:
U.S.
64
%
63
%
63
%
64
%
U.K.
32
%
34
%
32
%
34
%
Other International
4
%
3
%
5
%
2
%
Total
100
%
100
%
100
%
100
%
PENSKE AUTOMOTIVE GROUP, INC. Retail Automotive Operations Same-Store Selected Data (Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2016
2015
2016
2015
Retail Automotive Same-Store Units:
New Retail
60,140
59,880
173,182
171,573
Used Retail
48,970
49,504
145,744
146,974
Total
109,110
109,384
318,926
318,547
Retail Automotive Same-Store Revenue: (Amounts in Millions)
New Vehicles
$
2,292.0
$
2,361.5
$
6,772.4
$
6,819.5
Used Vehicles
1,337.6
1,366.2
4,038.6
4,024.8
Finance and Insurance, Net
125.8
123.0
366.3
354.9
Service and Parts
464.3
456.1
1,384.2
1,345.1
Fleet and Wholesale
237.1
221.5
735.6
678.9
Total Revenue
$
4,456.8
$
4,528.3
$
13,297.1
$
13,223.2
Retail Automotive Same-Store Gross Profit: (Amounts in Millions)
New Vehicles
$
161.4
$
174.9
$
497.6
$
516.4
Used Vehicles
80.0
83.6
243.8
256.3
Finance and Insurance, Net
125.8
123.0
366.3
354.9
Service and Parts
268.5
273.0
812.0
805.4
Fleet and Wholesale
2.6
1.7
12.4
7.8
Total Gross Profit
$
638.3
$
656.2
$
1,932.1
$
1,940.8
Retail Automotive Same-Store Revenue Per Vehicle Retailed:
New Vehicles
$
38,111
$
39,437
$
39,106
$
39,747
Used Vehicles
27,314
27,597
27,711
27,384
Retail Automotive Same-Store Gross Profit Per Vehicle Retailed:
New Vehicles
$
2,684
$
2,921
$
2,873
$
3,010
Used Vehicles
1,634
1,688
1,673
1,744
Finance & Insurance
1,152
1,124
1,148
1,114
8
PENSKE AUTOMOTIVE GROUP, INC. Retail Commercial Truck Operations Selected Data (Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2016
2015
2016
2015
Retail Commercial Truck Units:
New Retail
1,668
1,712
4,777
4,242
Used Retail
226
286
771
880
Total
1,894
1,998
5,548
5,122
Retail Commercial Truck Revenue: (Amounts in Millions)
New Vehicles
$
168.8
$
169.8
$
497.5
$
418.3
Used Vehicles
11.3
15.3
38.6
46.8
Finance and Insurance, Net
1.8
2.1
5.5
5.0
Service and Parts
81.5
77.9
232.2
216.0
Lease, Rental & Wholesale
2.7
3.4
8.5
17.0
Total Revenue
$
266.1
$
268.5
$
782.3
$
703.1
Retail Commercial Truck Gross Profit: (Amounts in Millions)
New Vehicles
$
6.2
$
7.9
$
18.7
$
19.7
Used Vehicles
(0.3
)
1.4
(1.3
)
4.7
Finance and Insurance, Net
1.8
2.1
5.5
5.0
Service and Parts
30.0
28.2
85.7
79.3
Lease, Rental & Wholesale
0.5
0.4
1.1
2.4
Total Gross Profit
$
38.2
$
40.0
$
109.7
$
111.1
Retail Commercial Truck Revenue Per Vehicle Retailed:
New Vehicles
$
101,202
$
99,208
$
104,145
$
98,626
Used Vehicles
49,999
53,420
49,991
53,167
Retail Commercial Truck Gross Profit Per Vehicle Retailed:
New Vehicles
$
3,699
$
4,600
$
3,905
$
4,638
Used Vehicles
(1,431
)
4,986
(1,681
)
5,448
Finance & Insurance
965
1,027
992
978
9
PENSKE AUTOMOTIVE GROUP, INC. Retail Commercial Truck Operations Same-Store Selected Data (Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2016
2015
2016
2015
Retail Commercial Truck Same-Store Units:
New Retail
1,322
1,712
1,989
2,735
Used Retail
218
286
673
829
Total
1,540
1,998
2,662
3,564
Retail Commercial Truck Same-Store Revenue: (Amounts in Millions)
New Vehicles
$
133.5
$
169.8
$
225.9
$
292.9
Used Vehicles
10.9
15.3
33.6
44.3
Finance and Insurance, Net
1.6
2.1
4.4
4.7
Service and Parts
72.0
77.9
162.7
168.1
Lease, Rental & Wholesale
2.7
3.4
6.8
14.2
Total Revenue
$
220.7
$
268.5
$
433.4
$
524.2
Retail Commercial Truck Same-Store Gross Profit: (Amounts in Millions)
New Vehicles
$
5.2
$
7.9
$
10.3
$
15.9
Used Vehicles
(0.4
)
1.4
(0.9
)
4.6
Finance and Insurance, Net
1.6
2.1
4.4
4.7
Service and Parts
27.0
28.2
66.1
66.4
Lease, Rental & Wholesale
0.7
0.4
0.8
2.0
Total Gross Profit
$
34.1
$
40.0
$
80.7
$
93.6
Retail Commercial Truck Same-Store Revenue Per Vehicle Retailed:
New Vehicles
$
100,976
$
99,208
$
113,598
$
107,086
Used Vehicles
50,128
53,420
49,896
53,487
Retail Commercial Truck Same-Store Gross Profit Per Vehicle Retailed:
New Vehicles
$
3,924
$
4,600
$
5,160
$
5,830
Used Vehicles
(1,665
)
4,986
(1,345
)
5,537
Finance & Insurance
1,050
1,027
1,661
1,318
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”) for the three and nine months ended September 30, 2016 and 2015:
Three Months Ended
Nine Months Ended
September 30,
September 30,
Increase/
Increase/
2016
2015
(Decrease)
2016
2015
(Decrease)
(Amounts in Millions)
Net Income
$
88.5
$
87.5
1.1
%
$
263.7
$
259.1
1.8
%
Add: Depreciation
21.5
19.8
8.6
%
66.8
57.7
15.8
%
Other Interest Expense
25.1
16.3
54.0
%
61.8
49.0
26.1
%
Income Taxes
41.7
41.7
—
128.4
128.2
0.2
%
(Income)/Loss from Discontinued Operations, net of tax
(0.1)
0.1
nm
1.1
1.1
—
EBITDA
$
176.7
$
165.4
6.8
%
$
521.8
$
495.1
5.4
%
nm – not meaningful
11
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