PAG - Earnings call transcript Q1 2024 | Penske Automotive Group, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon and welcome to the Penske Automotive Group First Quarter 2024 Earnings Conference Call. Today's call is being recorded and will be available for replay approximately 1 hour after completion through May 7, 2024, on the company's website under the Investors tab at www.penskeautomotive.com. I will now introduce Tony Pordon, the company's Executive Vice President of Investor Relations and Corporate Development. Sir, please go ahead.

Anthony Pordon

Thank you, Leah. Good afternoon, everyone, and thank you for joining us today.

with press results Penske and the was on website a quarter Group's is company's know, to our financial designed XXXX issued along results. you release in Automotive detailing first posted assist As you presentation understanding the this morning

you As I'm questions e-mail for any or always, have. phone by follow-up available may

Operations; Operations; me today's call Officer; and Tony our Hulgrave, Shelley Chief Vice for Corporate are Financial Chair President International Joining Controller. EVP Shearing, Rich Randall Facione, our American North CEO; and Roger Penske, Seymore, and and our

about Our events, discussion and amortization today before our assessment may may operations, and liquidity financial EBITDA plans, or certain potential, include of future earnings leverage forward-looking measures, acquisitions, discuss taxes, conditions. ratio. as We statements also interest, outlook, depreciation and our business earnings growth non-GAAP such

investor measures We have press directly GAAP have measures and in the on reconciled the and which comparable presented morning's most the measures to our website. comparable presentation, prominently this are available GAAP non-GAAP release

for future XX-K turn from Form and filed XX-Qs, could Our our over outlined to cause call discussion the and future this Form also that filings, of time, our you under events release to because previously from Statements. direct Forward-Looking including expectations vary factors today's press uncertainties our materially in differ now and to SEC additional expectations. At I'll risks may Roger results I Penske.

Roger Penske

joining you Thank today. you, Tony. for us Good thank and everyone, afternoon,

$X.X During and used commercial revenue used PAG X% by increased the vehicles and billion. XXX,XXX quarter first trucks. of X,XXX new XXXX, to over delivered and We new nearly

generated [ million QX XX million per XX.X%, income $XXX last and of in basis income Our year. points when which taxes, was compared $X.XX. increased gross share earnings net ] before to $XXX We margin

premium retail availability. U.K. from During production on holes, issues supply faced and headwinds first quarter, our that port vehicles impacted product U.S. recalls, operation and the product

availability management as SUV Penske higher earnings for lower by results gain of quarter lower by revenue, consumer strike and commercial per were earnings lower one Transportation utilization, the levels a well. sale in impacted the earnings interest full-service average leasing vehicles, the share a of investment Audi that from negatively driven from logistics by and Income rates, company's center were costs impacted in plant PTS million builds business way, Solutions. Lowering Mexico interest at interest improved also revenue-earning inventory equity primarily driven and and debt in used $XX.X a our partially Additionally, QX offset higher equity rental business. our rental increase an higher equipment rates on that's balances from in lower distribution by

development. corporate at Looking

and During we annual including QX, in XX the international is Estimated our $X.X X revenue billion. franchises, XX in added automotive markets acquired U.S.

entered the conditions. in second an motorcycle in acquire CarShop closed which location agreement April, the in of also in Melbourne, X X subject we Ducati Porsche obviously, X to We is into dealership XXXX to XXXX, U.S. In close expected dealerships to quarter customary Australia, and

turn operations. now automotive me attention Let the to

XXX,XXX units, to includes in U.K. During X% the which delivered the agency units automotive total X,XXX quarter, increased units

used units units New X% and increased increased X%.

new were take at on quarter to depending and brand between U.S., or continue in XX% the We the of XX% orders the U.S. activity XX% in with presold and forward the region, sold averaging MSRP. vehicles in

increased of December U.K., X%. XX,XXX end the at the XX,XXX XX,XXX of were in required automotive quarter BEVs estimate leased. In the time discounting, is of the XX% While the XX% units at forward and retail healthy order book sold the Same-store significant same last at versus we BEVs year. sold revenue

was OREO Customer X%. pay up Service X%. X%. However, was increased & Parts up

per declined only used up during unit first new year. gross profit the grow and quarter. Gross during QX to sequentially unit to sequentially, is last profit business for increased X%, when repair retail continued the retail quarter collision while Our compared all $XXX

Let turn last of Solutions. year. over a At Transportation trailers XXX,XXX PTS XX fleet March trucks, XXX,XXX managed XX, to compared Penske to March me at now tractors and

overall we increased to by operating the commercial continued fleet reduced our In of XXXX QX, freight and during Full units QX utilization fleet rental service billion. lower size to X% Although market. weak contract increased, due increased revenue a PTS X,XXX revenue $X.X XX%.

of revenue rental increased our generated million. earnings X%, PTS but net $XXX Our revenue XX%. declined logistics

increase declined compared million PTS to from the which one, Our over year. share number and related to used the gain expense [ $XX last interest bond trucks higher compared on 'XX earnings of trucks. We sold due $XX the disposal 'XX ] of for of expedite in PTS QX million used units. decline million refinancing XX,XXX XX,XXX earnings QX of $XX.X Decline a rates to: a the was higher prior by in to and million, $XX was in year debt; older to all outstanding of sales

utilization compared sequential only QX XX%, fell basis to last year, demand. freight and million as of replace increase points rental QX million XXXX weak older and to continue importantly, revenue consumer compared when of one-way as $X to and the but maintenance we costs lower fleet $XX rates fell XXX rental lease rate was Higher extensions. Our the

down to placed sale March XX,XXX last of at we units XX,XXX compared are really order XX,XXX on X,XXX various units nearly end That's the to new have XX%. with with year. for currently Our OEMs

we with a which in from at fleet reducing reduction increase X,XXX, maintenance rental earnings As expense. to PTS replacement the vehicles coupled look sequential utilization, the expect and QX, improves new we from in

Let me Thank to it over turn now. Rich Shearing you.

Richard Shearing

Roger. you, Thank

and our locations in business dealership Group diversification. important is an Truck of part Premier XX America North Our represents

Diamond of commercial one for North largest America. Trucks truck the retailers are We

and the increased while for strong used quarter. declined of sales. X X Group XX% During retail XX%, net Class XXX,XXX XX% Premier pace approximately quarter the XX% new of backlog was the down units X,XXX QX, up down by represents sales X, to from overall, sold Truck end sales in worth X% months' X XXXX. of the At current orders March, driven retail but

solid of gross controlled well operations mix replacement on primarily in Premier and a points. Same-store at believe margin QX sales and our segments Group fixed X/X $XX and fixed and XX.X%, continue an strength driven We will increase and strong gross medium-duty. needs, XXX%. remained a SG&A new by return of to of profit Truck fleets, X.X%. drove be units truck commercial absorption produced of vocational basis we EBT a million was private demand also across see XXX business However, to Class

anticipated towards drive Seymore. Randall strong we 'XX look call the and retail like turn book As to to in changes a emissions now order sales. I over would should 'XX,

Randall Seymore

and Penske the on- including construction and power products our across business marine, service & the off-highway supports Australia. and full in profit. our represents Service rail Australia offers the trucking, Thank you, markets, Rich. and region. Parts I across will mining, now cover approximately gross defense, aftersales parts XX% sectors in generation, of

business. increasing in of key a the on units focus is driver operation our So

fact, In return the month X.X%. the sales it business single-best of history in Australia the was with of month a in our on March, in of

military hyperscale X off-highway, 'XX, period X.X% the system data and In to the months and grow solutions with storage, for XX, X.X%, same ended from turnkey year. Zealand last increased During Australian March our applications. centers, battery New power mining respectively, the operations -- continue and heavy-truck X.X market

power, a applications. power generators to deliveries of centers, leader and into continue data for hybrid standby to significant in critical and be prime We especially make continue

we have storage than with addition, started million battery adding pipeline. to government recent solutions contracts, existing energy large-scale In deliver to $XX the more to

turn like data Our and to current centers systems beyond. I order storage bank now XXXX hyperscale million for is would to battery Hulgrave. over combined the for and Shelley over $XXX call

Michelle Hulgrave

billion flow long-term cash in of rate and debt interest from At strategy. I'm million quarter, up will X.X%. maturing XXXX EBITDA our million you, subordinated the Randall. other Thank trailing debt XXXX. and billion, on cash end balance report in is $X.XX our pleased $XXX flow generated end these $X.XX The capital Good million our and represents $X.XX XX-month discuss $XXX notes was everyone. million afternoon, our that in and sheet our $XX the with review of of long-term the I we March, average maturing billion. $XXX notes the September approximately to this allocation was December.

we to the U.S. present refinance maturity. We current through liabilities intent the GAAP, to plan XXXX in not and have notes ability do the XXXX notes. Under

our X.Xx. at also We and million other at $XXX borrowings sits to in mortgages Debt subsidiaries. total leverage million international in $XXX have and XX.X%, was capitalization

see, can our strong, balance you sheet safe As and secure. remains

repurchases. to Since XXXX, increase. approach $X.XX capital the allocation dividend capital growth securities a of in capital through and X acquisitions representing share, expenditures, investing Our balances from through opportunistic end investing raised diversified $X.XX and times dividends to per XX% to the have we shareholders for returning and

million. $XX through have to growth dividends, During It's $XXX and that quarter, leverage repurchased Xx reiterate approximately paid million to a our for the on shares first the in up XXX,XXX basis. for lease-adjusted invested we capital expenditures to important ability flex we $XX million

million December. Floor debt increased $X.X was of the the billion, end was million December. inventory from $XXX vehicle from $XX $X.X of New plan billion. Total end up inventory

for vehicles supply volume we Importantly, to battery XX-day was new XX Days U.S. final turn a back XX the new a in for of I supply new was of supply vehicles the was used. will days remarks. this supply and of some premium of for Roger had XX. XX-day electric vehicles and days. At time, The call

Roger Penske

Thank Shelley. you,

premium our the annual we to acquisitions the in footprint brand the Today, estimated entered in quarter, the recently, agreement during recently partnership Porsche with centers: with our generate throughout markets provided we opportunity Porsche are into the diversification center geographical we Ducati Doncaster to at our Porsche continue completed Most with capital network. We have along These and With X to flexibility the expected revenue. Brighton, Porsche. in billion strengthen with X allocation. $X first Melbourne approximately our X demonstrate to XX Australia. our acquire other us stores expand acquisitions we the international an have

leverage in we've growth XX Porsche over and acquisition, years, system will the Australia. significant with significant experience with the commercial the drive automotive brand diverse And our a this power infrastructure industry we vehicle in to business For and strategically Melbourne. retail existing in built

retail, our joining the and across your results continue cost capital our today confident disciplined benefit us Our and diversification model performance in continued and strategies. the in Thanks demonstrate truck, allocation to control business. PAG. remain commercial confidence for of automotive, I the of

Operator

with Instructions] first, John of go [Operator And America. we Murphy to Bank

John Murphy

first better new a obviously fearing. they on on your been to wondering where on than GPUs wanted hot quite for being the or management just if brand They're -- about holding GPUs, people I these luxury talk everybody time very keeping now. are which topic I'm mix-driven some focusing mix-driven, could just touch on are. for have that you Roger, up

you if could talk curious Just about that.

Roger Penske

and Rich U.S., can Why talk the about then talk Shearing about don't I Rich? Randall international. have

Richard Shearing

yes, Yes. Thank Look, touched on I it. John. you you, think

our premium that plays We grosses. certainly is The first highlight mix. definitely thing in the I would a role think

if the so side at look down used up new you And $XXX then $XXX the and in U.S. sequentially. sequentially

touched as the team job So focus think that has on there to done that key supply volume, that been think then scorecard we're balancing that's achieving we best out that compliance Shelley are are And very of well, numbers. I operating you fantastic see so with the a I that make getting. days as our turning are a sure OEM the for our frankly, us of obviously too in deals the the And inventory available.

Roger Penske

COVID, gone utilization. been per taken units able team, to XX. the John, has come we've looked the from sales to do out also, at think And productivity really salesperson our of obviously, what we've we've XX as and I we've

had we Porsche XX%. people the in a opportunity. given were agree on difference. And us were I which that were down XX%. line And They I have with making XX% best side the certainly now, brand. we down headwinds is do quarter. that We think front premium/luxury we down They has were Rich, the down with -- yet, the So our

on higher perspective, from So those gross BEV a MSRP. discounting below impact And we about even units. had we're some $X,XXX

the you it had that our additional that would headwind. at So margin overall, quarter. When during look overall have increased

don't why you kick Randall, So in?

Randall Seymore

pounds at represents bad. And all story all-in our which down unit the XX% per in you unit, gross than mean I in per ICE. look which was unit of a It's X,XXX our U.K., per BEV the BEV new if similar isn't $XXX gross new of U.K. car about less Yes. sales, was

is the here, other at a gross common of the certainly it's inventory at So supply look it that little keeping I But and a think, team profit. the with point bit the that. about And XX-day conversation helps dealerships headwind. a where

So it's every massive day. a focus

Roger Penske

And also the mix.

$XXX a John, So company-wide were the basis new you pull you on on all and if up when U.S. take but on it used. you together, U.K., $XXX the down we take

to down I'm able of byproduct, our it supply But that maximum for in line to and So really glad mix to keeping think, properly our the days premium the a report growth. quarter. I get was be

John Murphy

similar SG&A sequentially basis And pre-COVID. $XX dollars. SG&A $XX the growth, it's then topic I of still we a from XX.X% on had mean, hot XXX sort of we another in sort front. million think But million, I where step-up XXX back points were to at

remaining So of manage want you mid- at to just here. I'm term. well under things to keeping think paying control turnover are Roger, you low. sort people certainly -- been to I mean you've good where that and keeping long curious,

get time little that's over then you're of reason curious thinking and the a and that to other about other and keep more could bit back folks. acquisitions worked Riebrook a SG&A just if how than get little inflated with So bit down. higher the one that now dealerships, particularly But

Roger Penske

one capital you Well, I the was think side. hit point human

the only is first which world-class. through end turnover quarter, of the XX% Our is

give Let on Shelley me okay? you SG&A, let color some

Michelle Hulgrave

mentioned, -- our and controlling great a Yes. expenses. It's daily are as Randall doing job teams it's battle, a

that So basis, we were we report on proud very sequential basis were XX a down points. to

up were were we on But in look up only $X same-store we when that million year-over-year. at SG&A. overall basis, mentioned it you a You

legal look And in so back were related and expenses to that, acquisition take million a settlement of the when I a about $X had quarter. our we that there at

keeping that's was below flat, And teams count every relatively so levels. committed remain day. We byproduct really, of grinding our just SG&A pre-COVID and the to head

that's have streamlining managing We and to plans. want those all to scrutinizing comes to leakage also but employees, [ We've Our leadership pay We're an got efficiencies executives we keep team want those the new across when focused hires. ]. any our growth it don't board. on are executive

So Service service as look additional gross lot of vehicle $XX loaners that's million the had did We efforts, quarter them. incur, at and profit, our other productive. maintenance in one that service in business. an the a Parts the $X we increase in We million. That's being expenses that loaner of very of an about result had we of &

of One a days. days appointment get when could X appointment teams the down outstanding XX terms loaner able was to an of service we our for in from bring to

So it's paying dividends. really

John Murphy

And been to if sneak and maybe there for could seems one a while. a last in. I mean focus, I you've be one Australia growing

mean, control you more in kind with as I power power acquisitions where you hearing U.K. Roger, Australia? market, mean don't growth of the well. conflate in view want I in business it necessarily player the market dealership the I say So wouldn't this, platform, a there, directly ways be to the about outside even to -- of wouldn't -- sitting we're as there I down but could of big And big, out the But do be going more business and in many you and the a

Randall Seymore

other system the opportunity automotive power opportunities retail get grow commercial with and the was and with Yes. But and we've had we're a past that on as the springboard years, view it and it's certainly core get we've more this John, the and [ able really line it vehicle to Porsche, of strategy several for I'll made significant Randall. ] that -- a over that. a one. to take XX for opportunities. Look, months, into

people the on that a already door. But we from had over standpoint, the -- leverage having In in some we knocks fact, there, legal, people that part IT. have we've infrastructure HR, X,XXX finance from X,XXX can

thought one was best And we the a can tuck-in just then of to market, first a great places So as Melbourne grow. in it the the population step. world, a Australia -- being continue just it's we that and it's

Operator

to Ward go with Capital. Freedom we Mike Next,

Michael Ward

significant the have Or And a done you of opportunities? as about far market to more U.K. you in couple grow room the expansion? over -- transactions last more are but do there, as

Randall Seymore

strong business, aren't the as we've think of XX% want at brand look to business, But Mercedes I the plus Look, and nearly the to positioned in look it's of Yes. here. opportunistic to you premium that Porsche these just a we're as brands be the franchise going other laws the continue public's business, Yes, at to XX%-plus being acquisitions we're of market, we there, some but grow. And ourselves, -- we've fit there. XX% they if how good are and core mix of that's happened didn't of from got our culture the some the BMW right into that continue wheelhouse.

we're that we in forward. and continue to -- to that continue market, XX% want -- we premium moving be want just just way we to So

Roger Penske

Mike, run -- one Group they we've brands, the saw pricing think taking we down mentioned, because question to but think, of and I the major at obviously, obviously, we it and And mistake. each Inscape. Randall other was no got premium, premium of hired there, with XX benefit say, we that the brands market the the deal, about there. have X have that's have a looked think they when premium got I And our the we've good shares, Look, it, brands. about us, wanted. things, benefits one as XX Lithia But Pendragon for of key we one think in mix from, you as

the in than right lower took the are place, when obviously, were the multiples, at multiples So these now. U.S. least

whether So that they would certainly see think look at that you'd it.

market. We terrific It's now. a in billion a management got of have annualized team. $X car great revenue U.K. We've the

in I U.K. the think now. we operating have almost XX,XXX people

look, plenty is Lithia come as room and of there look, in, So there's X Group ice.

I might being honest as the validates you. think to be shows there long be have, we with as our realize people market that

Michael Ward

the sales. clarification. in as better And X I things as upside industry think be there are near-term might for Shelley, U.S. the is just probably upside far

Can up you that fee you of number $XX I'm SG&A one, mentioned ]? onetime settlement. million. that $XX [ million right? Is like that? right was legal quantify first coming that the kind or included that a The a Is

Michelle Hulgrave

No, no.

So lawsuit overall. quarter, was the that We ], our we had total the shareholder $X.X Mike. first and it was $XX million million publicly [ about in disclosed

Michael Ward

that million. then included onetime but okay, Okay. thing a It $X.X the did call And would the -- SG&A? in not item, second was it's as And out you okay. it --

Michelle Hulgrave

correct. that's Yes,

Roger Penske

if acquisition that I at out And just But are that. earnings. call adjusted basis, wanted we flat. on as we -- you that comment don't make had take costs, We just Mike, those same-store some because to look Shelley we really think on a which

Michelle Hulgrave

flat. Relatively

Michael Ward

Right.

then secondly, them you you the about quite And 'XX you're to you And mentioned notes. catch middle allow that. you're -- Shelley, Or come the the Okay. are I said in didn't of refinancing? going not current? to

Michelle Hulgrave

stress the availability in September, even have notes the have required we them ability we'd when as come classify to XXXX intent current don't though to [ liabilities. we you $X.X powder, as of under have due classify to But billion of that that and GAAP do to you U.S. we have as XXXX, those them So ] rules, wanted the we with refinance standard currently dry current. September be

So keep them is story. the now, it with being rate is a really true more And debt. long-term versus we'll the continue of where to in that rates right

So...

Operator

go JPMorgan. Next, Rajat to we Gupta with

Rajat Gupta

a Just question on PTL had first.

us be second granularity into be like a with a year just we should to of it or then kind the earnings And quarter-over-quarter. our expect that and to how half? And have there that helpful on be that? cadence related about the sequentially more you full follow-up. mentioned dollars just give would models. beyond I a You think Would around the Any guidance up to range a number year-over-year little possible

Roger Penske

the understood in I and a is us that increase are are QX correct? asking to give the what going as beyond, look question generators into profitability. we Is think I sequential

Rajat Gupta

business, trucking the Yes. business. PTL In lease the

Roger Penske

us with we'll ACT or freight Yes. Rich? as said defleet that At can that last help rates up. put a Am point, during out the into reduced look, the have statement We'll freight used a trucks as week I we to continue QX. this had utilization. number sell allow the and market will that expect our they rental pick profit, out will correct, Well, one, X,XXX come fleet. to we market to

Richard Shearing

Correct.

Roger Penske

In the quarter. second

So us. that certainly help will

from and go of in a you back units when March on XXXX. order story we also -- Today, the got standpoint think to got XX,XXX. had I back remember, back tell we XX,XXX

more lot The a have to XX,XXX pushed extension we through of had. which system. we new replace units the in, units those So coming roughly or

on X,XXX fact, And won't in older had in units that of we we higher maintenance those we QX a year. this So have extended units. only

look So and at some that that will in business rates, will if help we the be key. And certainly obviously, benefit get us. interest we one-way as

X,XXX last year, XX,XXX also for sale continue We those. to work units and versus through available roughly have we'll

So and increase I on see we're getting the full-service share continued leasing. market

customers. with rental our rightsizing positive. Remember, forward, comes revenue, will to And they're our fleet somewhat lower of these be we're go our in which extra less rental of think businesses I using all revenue XX% trucks. from lease

revenue. the that obviously T&E, pick from will facilities. at been our think go our standpoint third think that's the looking of I We and from hit into So quarter. Overall, of at I think CapEx we're us standpoint as second reduction the in we're looking we a people, up

All in reducing QX. benefit. $XXX have And growing the of balance of in a things We sheet. those sheet will balance increase had million again,

-- new down the other no it we've even first with in rental year well buy of expect to of we're what quarter. be than the in we the a based stay was trucks -- that last trucks year below rest We in. more what And big will got and buying coming

I in all expect our together, to a that PTL the we say put for would can bottom So line QX. you the talking that expectations, increase team, in when sequential

Rajat Gupta

is out. is clarity -- to assumption? on that Because a for a seasonality way there the like degree? Got Is a baseline digits? it. double Like it pretty us it's digits, there's that single Any

Roger Penske

X look the rest hope assure as of but year. want And at would you here in phone, don't much for our X as you the we comps to that to we pushing I I'm as and a number continue give I the for we on momentum can can.

Rajat Gupta

third And car quarter on Very GPUs. just those quarters? business. the here fourth fourth Got headwind, we also from used for progression the levels and the the a into quarter Obviously, should seasonal U.S. the and second but we just curious helpful. U.K. sustainability like then think units it. like here on the about nice has That's car both about the should think here a improvement the How Got how follow-up used in of and it.

Roger Penske

Rich, forward, as and what we the feeling is go used the Rich, on here GPUs.

Richard Shearing

Sure. couple think to Rajat, a things mind. I of in keep

we're So some the affordability, improvement there. seeing

at look an our you now. That's $XX,XXX sales average average sales XXXX from If to transaction over at under price, down it in $XX,XXX. peaked come

trend anticipate we equity traditionally, that's normalizes. Then negative was a some difficult again. side, So to as look past going that in starting those that market highest to continue what the you the profitability And to down auctions, at -- to seeing the starting up we're from closed relative have our those sourcing channels those are channel. are trade-ins open been standpoint, of sourcing

as So that well. continuing we anticipate

to continue be on what the to purchasing. we're needs course, disciplined team Of

some looking And know we are of sure and to we we're that. profitable putting on vendors cars units. these we're values to with the So use, make going at our that of some technology to to turn algorithms using

And And continue as I corrections, into we price we've stabilization that will QX, aspect. seen good in go so QX. think,

Roger Penske

and we current. really they're used, at really to in days would -- you're I on U.S., keeping XX when when days, add say that look the with at on supply, Yes, on it XX new looking -- inventory the so you XX U.S. to days days

we've hundred-dollar we're make good I here the shape. One million big CarShop step hundred cars a other benefit, a So access think as -- margin in age, Obviously, we've benefit to seen that we've in been U.S. really able U.S. forward in the start to in used more on several cars. seen

what So the from you about around Randall, U.K.?

Randall Seymore

Yes, unit similar QX. gross those XX% over QX. per in market headwinds in QX pricing up in remember, we QX fighting were the The $XXX sequentially. were And was down we I story. versus mean on used

we meetings So that to certainly to really of in you or as and XX any is I'd used it's inventory. goal is aged. I -- all XX one team our and sit X days managing this. have to our supply go just mean And through stabilized. over the over love XX, from And days

keep market. doing. we it turn in it get it, price So exactly profit stable That's fresh, gross We're get it more to through reconditioning as going a quickly. what right, we're

Anthony Pordon

Sorry, other is I fleet. the mention add to thing one Rajat, changes that to the in loaner failed

loaners going the our back vehicles at look you ago, XX-plus used makeup months predominant the were of if So fleet.

take cars, out, the been lot put now. car to able gross help -- perspective. great to They into to we've us we're put those from used new on As on turn depending faster. profit those new those programs, a we year much into We're able cars that and fleet able turn a of OEM, that will per

Roger Penske

Yes.

the market car is be up what that new cars to Leasing we're for Rich, ICE X If old, year-on-year? X vehicles. X is years will as we're from said, the starting can into also some get alone, all what that I benefit it, which, X,XXX put of a turn think from supply standpoint, Shelley, that in used That now loaners. BMW huge yet program. Rich times, we the we have us just, up to more can those or X it's we and XX,XXX

Michelle Hulgrave

of year-over-year, XX% our new sales. up We're to X% up

So it's...

Roger Penske

we're getting those also than the that And in that lease good which fab market. to And on money we units we're are some buy on for see new. returns ones now, I the to sell think making We're able are we also are opportunities more the starting us.

or trade selective we them are the being in those open guys buy our as interesting, we So market. very

Operator

Next, Whiston we go with David to Morningstar.

David Whiston

X questions. Just

allocation capital on for First, the rest of year. the

far. You acquisitions doing do interested in seem so pretty

year. balance about rest of spending the the thinking about buybacks curious how and M&A to between for just So more

Michelle Hulgrave

David, it's Shelley. I can take that.

of and weighted been growth we'd returns years more stay cash has have when of to moderations. We heavily. between Typically, in returns. XX-XX shareholder shareholder that It couple range like it enjoyed the from lot to comes a our last

at grow least on I think want to XX-XX. shareholder to it. We XX%. -- to through going to we're keep was then We're push organic how and to it acquisition, last the going between But and we're really basis. to like going is do returns XX-XX X% to revenue teams acquisitions X% we do grow year, do a growing through an

how of that's we so it And think here.

going to on things entertaining opportunities about we're selective, come the certainly across markets. of diversification. We're that We've a talked depend way. all our a look able our as it's to but many are lot Now to we lot going be

about the been Randall There's already. as the talked gives side so as we the well it Australia, market lot new be active to opportunity just And acquisitions. opportunities, business internationally. that us in that bought truck very well. but be on a which there opportunities could us retail We've have We've great a selective into for going of we as mentioned

all going what to depend opportunities it's come way. So on our

Roger Penske

David, purchase at multiples down ever opportunities XX the they've and more I We're to us, over and last those we that now, also, attractive those. come were seeing been to think, months. look highest at some the going we're realize prices which to got makes

X% growth Shelley, think on deals Hopefully, -- since XX% buy there's X% the which we're us XXXX? least grow be want we I And plan, that we opportunity acquisitions. for of forward as but raised acquisition least to I have at be a through through we pipeline working organic acquisitions. would at what, there mission go We've side. our our kind dividend, would I think on, think,

Michelle Hulgrave

Right.

Roger Penske

A big number.

were we million CapEx, which $XXX million. to And is million. our the our repurchases, share over was at certainly, look And then, million land, dividend allocation continue $XX just -- $XX course, dividends in about increase. our And So [ our of ]. capital you some XXXX, $XX at this you of and look about see the when

at is ] that's you at our billion X.X:X. our So our still done. when that leverage somewhere And around kept -- $X.XX [ look we've

I want to there, want So for standpoint of standpoint, secure safe the don't stay on or be much to we're buyback way an from I there But company sure. to too leveling too. and think overall opportunity and ourselves standpoint want I I there's out on go acquisition. we of off share think a

David Whiston

acquisitions talked the you opportunity, unusual, about in release. your of speaking And It's though. and press Silanis Ford

terms still do X in in of while buying ] Detroit it do You a once brands. [

compelling very compelling there them? Or geographic price? stores a reason So those wanted buy I like to -- just are is curious, was were those a just you

Roger Penske

up think Massachusetts. in was I it

Rhode think, now, I look right we're X at sitting standpoint X% and our right was But the with from we of I Island. volume. opportunistic, think we tuck I it think more big -- into

line some prices We're would seeing them. where expect coming opportunity of there's think in those we I there.

So to right place on market, even right in in the look we're going the take the domestic a side.

Operator

we Freedom Capital. a Michael with follow-up And have Ward from

Michael Ward

X just how are about model on. thoughts we're U.K. your agency it the working year wondering And Just I'm And out? into is what in the

Randall Seymore

Mike, that. I'll it's take Randall.

And the clock so was a first systems big has yes, standpoint, inventory job done system think rewind available it collaborating let's quarter -- a body. more and for with beginning the at So customer, 'XX, dealer from doing nice and And I dealer, we of both the entire if challenge the standpoint. business the enlarged a now. U.K. ease Mercedes-Benz importantly call place the those just ourselves in and the of is

percentage gross, fixed obviously, And So volume we gross more and being in able the point to our EV. significantly on were increase get we X QX.

helps. And past cost to So our year, over reduce that internally, as able agency as that we've base. model we've well been matured actually the

a closely retained measure profit per unit we on So new.

the So direct that the I and controllable relative it's all to profit with would owned think which the XXXX, to an gross market. Sytner best we've is call expenses, car we been since the anomaly less exception number

cars populist acquisition over XX%-plus because and U.K. sold areas. sold within sold the late representing in stores the London market significant So Mercedes all XX% has of those each all then there of in 'XX with primary been are of in dealer's the

They're not price. no negotiation they're there's a on dealers. other right So the there because to going neighboring going geographically

and -- end the competition. look, there's at So less of day, the

last actually the percentage as well. over rate improved has So year points X conversion our

a team more So with with conjunction the efficient. U.K. U.K., really has I Mercedes nice done our in think and to get job just going we're in Mercedes-Benz

So I it's like this now, year. win been -- us would it's a looking say right for

Operator

turn for remarks, the back Mr. I'll to And Penske. closing now conference

Roger Penske

Thank everyone, forward you. you, Thank We're for your quarter. support. looking us. and to joining Good QX

Operator

that your your conference does conclude Thank for and Ladies today. you participation. for gentlemen,

You may disconnect now

Penske Automotive (PAG) 30 Apr 242024 Q1 Earnings call transcript