Earnings Before Taxes Increased 8% to
$500 Million
Income From Continuing Operations Increased
10% to $374 Million
Earnings Per Share Increased 17% to
$4.93
Repurchased 3.5 Million Shares of Common Stock
for $362.7 Million Year-To-Date
Through July 26, 2022
Board of Directors Increases Securities
Repurchase Authorization by $250
Million
BLOOMFIELD HILLS, Mich., July 27,
2022 /PRNewswire/ -- Penske Automotive Group, Inc.
(NYSE: PAG), a diversified international transportation services
company and one of the world's premier automotive and commercial
truck retailers, today announced all-time record quarterly earnings
for the second quarter of 2022. For the quarter, revenue decreased
1% to $6.9 billion. Foreign currency
exchange negatively impacted revenue by $245.2 million. Excluding the impact from foreign
currency exchange, revenue would have increased by 2%. Income from
continuing operations attributable to common stockholders increased
10% to $374.0 million, and related
earnings per share increased 17% to $4.93. Foreign currency exchange negatively
impacted earnings per share by $0.11.
For the three months ended June 30,
2021, income from continuing operations attributable to
common stockholders was $338.8
million and related earnings per share was $4.20, and as shown in the attached non-GAAP
reconciliation schedules, adjusted income from continuing
operations was $360.2 million and
related adjusted earnings per share was $4.47, reflecting increases of 4% and 10%,
respectively.
Second Quarter 2022 Operating
Highlights Compared to Second Quarter 2021
(Percentage Change Excluding Foreign Currency Exchange Shown
in Parenthesis)
- Retail Automotive Same-Store Revenue – decreased 8%
(-3%)
-
- New Vehicle -18% (-15%); Used Vehicle -2% (+4%);
Finance & Insurance +1% (+5%); Service & Parts +4%
(+8%)
- Retail Automotive Same-Store Gross Profit – decreased 3%
(+2%)
-
- New Vehicle +7% (+11%); Used Vehicle -23% (-19%);
Finance & Insurance +1% (+5%); Service & Parts +2%
(+6%)
- Retail Automotive Same-Store Variable Gross Profit Per Unit
Retailed – increased $841/unit,
or 16% (+21%), to $5,999
- Retail Commercial Truck Same-Store Revenue – increased
11%
Commenting on the Company's results, Chair and CEO Roger Penske said, "I am pleased to report that
our diversified business delivered all-time record quarterly
earnings for the second quarter of 2022, including a sequential
improvement in earnings before taxes, income from continuing
operations, and earnings per share when compared to the first
quarter of 2022. Despite the supply constraints that continue to
impact inventory availability, demand remains strong, and we
continue to benefit from the diversification of our
operations."
For the six months ended June 30, 2022, the Company
reported a 9% increase in revenue to $13.9
billion. Income from continuing operations attributable to
common stockholders increased 42% to $741.9
million, and related earnings per share increased 50% to
$9.70. Foreign currency exchange
negatively impacted revenue by $279.8
million and earnings per share by $0.16. For the six months ended June 30, 2021, income from continuing operations
attributable to common stockholders was $521.3 million and related earnings per share was
$6.46, and as shown in the attached
non-GAAP reconciliation schedules, adjusted income from continuing
operations was $542.7 million and
related adjusted earnings per share was $6.73, reflecting increases of 37% and 44%,
respectively.
Retail Automotive
Dealerships
For the three months ended June 30, 2022, total retail
automotive revenue decreased 3% to $6.0 billion, including an 8% decrease on a
same-store basis when compared to the same period last year. Total
retail automotive gross profit increased 2% to $1.1 billion, including a 3% decrease on a
same-store basis. Gross margin increased 90 basis points to 17.7%
as variable gross profit per unit retailed increased 16%, or
$809, to $5,964 and return on sales was 5.0%. Excluding
foreign currency exchange impacts, total retail automotive revenue
remained flat and total retail automotive gross profit increased
5%.
CarShop Used Vehicle Centers
As of June 30, 2022, we operated 21 CarShop used vehicle
locations. For the three months ended June 30, 2022, retail
unit sales increased by 7% to 20,124 while total revenue increased
by 15% to $468.0 million, including
an increase of 6% on a same-store basis. For the six months ended
June 30, 2022, retail unit sales increased by 32% to 39,647
while total revenue increased by 51% to $983.9 million, including an increase of 37% on a
same-store basis. For the three and six months ended June 30,
2022, losses before taxes were of $1.5
million and $2.7 million,
respectively, due to the increased cost of acquiring used vehicles
resulting from the lower supply of new vehicles available for sale
and higher reconditioning costs.
Retail Commercial Truck
Dealerships
As of June 30, 2022, we operated 39 North American
commercial truck locations under the Premier Truck Group name which
offer new and used trucks for sale, a full range of parts,
maintenance and repair services, collision centers, and finance and
insurance options. For the three months ended June 30, 2022,
earnings before taxes increased 32% to $52.3
million compared to $39.7
million in the same period last year, and return on sales
was 6.8%. For the six months ended June 30, 2022, earnings
before taxes increased 65% to $110.8
million compared to $67.2
million in the same period last year, and return on sales
was 7.1%.
Penske Australia
Penske Australia is the exclusive importer and distributor of
certain heavy- and medium-duty trucks and buses and refuse
collection vehicles, together with associated parts, across
Australia, New Zealand, and portions of the Pacific and
is a leading distributor of diesel and gas engines and power
systems. For the three months ended June 30, 2022, revenue
decreased 14% to $140.9 million
compared to $164.6 million in the
same period last year. However, earnings before taxes increased 5%
to $8.8 million compared to
$8.4 million in the same period last
year, and return on sales was 6.2%. For the six months ended
June 30, 2022, revenue decreased 1% to $294.8 million compared to $296.8 million in the same period last year.
However, earnings before taxes increased 34% to $19.3 million compared to $14.4 million in the same period last year, and
return on sales was 6.5%. Excluding foreign currency exchange
impacts for the three and six months ended June 30, 2022, revenue decreased 7% and increased
7%, respectively.
Penske Transportation Solutions
Investment
Penske Transportation Solutions ("PTS") is a leading provider of
full-service truck leasing, truck rental, contract maintenance, and
logistics services. Penske Automotive Group has a 28.9% ownership
interest in PTS and accounts for its ownership interest using the
equity method of accounting. For the three and six months ended
June 30, 2022, the Company recorded $136.6 million and $255.1
million in earnings compared to $102.5 million and $156.2
million for the same periods last year, representing
increases of 33% and 63%, respectively. The increase was
principally driven by increased demand for PTS's full-service
leasing, rental, logistics services, and remarketing of used
trucks, which resulted in a 14% return on sales for PTS during the
second quarter 2022.
Corporate Development and Capital
Allocation
Year-to-date, the Company has added approximately $745 million in annualized revenue through
acquisitions and open points. The acquisitions consist of four
commercial truck dealerships located in Ontario, Canada and ten retail automotive
franchises, consisting of six in the U.K. and four in the U.S. We
also opened two retail automotive franchises that we were awarded
in the U.S. Additionally, the Company has signed an agreement to
acquire five Mercedes-Benz dealerships and three aftersales
locations in North London, United
Kingdom, from Mercedes-Benz Retail Group U.K. The
dealerships and aftersales locations subject to the acquisition are
expected to generate revenue of approximately $550 million for the full year of 2022. Closing
of the transaction is expected to occur during the third quarter of
2022, subject to the satisfaction or waiver of customary
conditions.
Based on the Company's strong earnings and cash flow, the Board
of Directors has increased the quarterly dividend three times in
2022 from $0.46 per share to
$0.53 per share. During the six
months ended June 30, 2022, we also repurchased 2.7 million
shares of common stock for approximately $275.4 million under our securities repurchase
program and acquired 148,440 shares of our common stock for
$17.2 million from employees in
connection with a net share settlement feature of employee equity
awards. From July 1, 2022, through
July 26, 2022, we repurchased an
additional 0.8 million shares for an aggregate purchase price of
$87.3 million under our securities
repurchase program. In July 2022, our
Board of Directors increased the authority delegated to management
to repurchase our outstanding securities by $250 million. As of July
26, 2022, the Company's total available repurchase authority
is $330.6 million.
Conference Call
Penske Automotive Group will host a conference call discussing
financial results relating to the second quarter of 2022 on
Wednesday, July 27, 2022, at 2:00 p.m.
Eastern Time. To listen to the conference call, participants
must register in advance using this link:
https://conferencingportals.com/event/dbtxjpcq. Upon registering,
participants will receive a confirmation which includes dial-in
numbers and a unique conference call access code and PIN for entry.
We suggest registering at least 10 minutes prior to the start of
the call. The call will also be simultaneously broadcast over the
Internet. To access the live audio webcast, please use the
following link https://events.q4inc.com/attendee/328850966, or
through the Investors section of the Penske Automotive Group
website. Additionally, an investor presentation relating to the
second quarter 2022 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 a
diversified international transportation services company and one
of the world's premier automotive and commercial truck retailers.
PAG operates dealerships principally in the United States, the United Kingdom, Canada, Germany, Italy, and Japan and is one of the largest retailers of
commercial trucks in North America
for Freightliner. PAG also distributes and retails commercial
vehicles, diesel and gas engines, power systems, and related parts
and services principally in Australia and New
Zealand. Additionally, PAG owns 28.9% of Penske
Transportation Solutions, a business that manages a fleet of over
386,000 vehicles providing innovative transportation, supply chain,
and technology solutions to North American fleets. PAG is a member
of the Fortune 500, Russell 1000, and Russell 3000 indexes and is
ranked among the World's Most Admired Companies by Fortune
Magazine. For additional information, visit the Company's website
at www.penskeautomotive.com.
Non-GAAP Financial
Measures
This release contains certain non-GAAP financial measures as
defined under SEC rules, such as adjusted income from continuing
operations, adjusted earnings per share, earnings before interest,
taxes, depreciation, and amortization ("EBITDA"), adjusted EBITDA,
and leverage ratio. 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 financial performance, acquisitions, and
growth plans. Actual results may vary materially because of risks
and uncertainties that are difficult to predict. These risks and
uncertainties include, among others, the Company's ability to
successfully complete the acquisition of the Mercedes-Benz
dealerships described in this press release, including the
satisfaction or waiver of closing conditions with respect to such
acquisition, the duration, severity, and resolution of the COVID-19
pandemic, government mandated restrictions on our business in light
of COVID-19 or otherwise, macro-economic and geo-political
conditions generally, conditions in the credit markets, inflation,
changes in interest rates and foreign currency exchange rates,
changes in tariff rates, changes in the distribution model in our
international operations via agency or other means, new or enhanced
regulations that may impact the sale of certain vehicles through
our dealerships, adverse conditions affecting a particular
manufacturer, including the adverse impact to the vehicle and parts
supply chain due to limited vehicle availability as a result of the
COVID-19 pandemic, the war in Ukraine, the shortage of automotive
semiconductor chips or other components, natural disasters, recall
initiatives 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, 2021, Form 10-Q for the quarterly period ended
March 31, 2022, 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.
Inquiries should contact:
|
|
Shelley
Hulgrave
|
Anthony
Pordon
|
Executive Vice
President and
|
Executive Vice
President Investor Relations
|
Chief Financial
Officer
|
and Corporate
Development
|
Penske Automotive
Group, Inc.
|
Penske Automotive
Group, Inc.
|
248-648-2812
|
248-648-2540
|
shulgrave@penskeautomotive.com
|
tpordon@penskeautomotive.com
|
# # #
PENSKE AUTOMOTIVE
GROUP, INC.
|
Consolidated Condensed
Statements of Income
|
(Amounts In Millions,
Except Per Share Data)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
Revenue
|
$
6,906.9
|
|
$
6,987.5
|
|
(1.2) %
|
|
$ 13,882.3
|
|
$ 12,761.3
|
|
8.8 %
|
Cost of
Sales
|
5,669.9
|
|
5,804.8
|
|
(2.3) %
|
|
11,413.6
|
|
10,665.4
|
|
7.0 %
|
Gross
Profit
|
$
1,237.0
|
|
$
1,182.7
|
|
4.6 %
|
|
$
2,468.7
|
|
$
2,095.9
|
|
17.8 %
|
SG&A
Expenses
|
817.7
|
|
749.8
|
|
9.1 %
|
|
1,615.5
|
|
1,414.1
|
|
14.2 %
|
Depreciation
|
31.7
|
|
30.2
|
|
5.0 %
|
|
63.6
|
|
59.5
|
|
6.9 %
|
Operating
Income
|
$ 387.6
|
|
$ 402.7
|
|
(3.7) %
|
|
$ 789.6
|
|
$ 622.3
|
|
26.9 %
|
Floor Plan Interest
Expense
|
(9.0)
|
|
(7.9)
|
|
13.9 %
|
|
(16.5)
|
|
(17.4)
|
|
(5.2) %
|
Other Interest
Expense
|
(17.0)
|
|
(19.7)
|
|
(13.7) %
|
|
(33.5)
|
|
(37.6)
|
|
(10.9) %
|
Debt Redemption
Costs
|
—
|
|
(17.0)
|
|
nm
|
|
—
|
|
(17.0)
|
|
nm
|
Equity in Earnings of
Affiliates
|
138.0
|
|
105.6
|
|
30.7 %
|
|
257.6
|
|
161.0
|
|
60.0 %
|
Income from Continuing
Operations Before Income Taxes
|
$ 499.6
|
|
$ 463.7
|
|
7.7 %
|
|
$ 997.2
|
|
$ 711.3
|
|
40.2 %
|
Income Taxes
|
(123.7)
|
|
(123.4)
|
|
0.2 %
|
|
(251.8)
|
|
(187.9)
|
|
34.0 %
|
Income from Continuing
Operations
|
$ 375.9
|
|
$ 340.3
|
|
10.5 %
|
|
$ 745.4
|
|
$ 523.4
|
|
42.4 %
|
Income from
Discontinued Operations, net of tax
|
—
|
|
0.1
|
|
nm
|
|
—
|
|
0.1
|
|
nm
|
Net Income
|
$ 375.9
|
|
$ 340.4
|
|
10.4 %
|
|
$ 745.4
|
|
$ 523.5
|
|
42.4 %
|
Less: Income
Attributable to Non-Controlling Interests
|
1.9
|
|
1.5
|
|
nm
|
|
3.5
|
|
2.1
|
|
nm
|
Net Income
Attributable to Common Stockholders
|
$ 374.0
|
|
$ 338.9
|
|
10.4 %
|
|
$ 741.9
|
|
$ 521.4
|
|
42.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts Attributable to
Common Stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
Reported Income from
Continuing Operations
|
$ 375.9
|
|
$ 340.3
|
|
10.5 %
|
|
$ 745.4
|
|
$ 523.4
|
|
42.4 %
|
Less: Income
Attributable to Non-Controlling Interests
|
1.9
|
|
1.5
|
|
nm
|
|
3.5
|
|
2.1
|
|
nm
|
Income from Continuing
Operations, net of tax
|
$ 374.0
|
|
$ 338.8
|
|
10.4 %
|
|
$ 741.9
|
|
$ 521.3
|
|
42.3 %
|
Income from
Discontinued Operations, net of tax
|
—
|
|
0.1
|
|
nm
|
|
—
|
|
0.1
|
|
nm
|
Net Income
Attributable to Common Stockholders
|
$ 374.0
|
|
$ 338.9
|
|
10.4 %
|
|
$ 741.9
|
|
$ 521.4
|
|
42.3 %
|
Income from Continuing
Operations Per Share
|
$ 4.93
|
|
$ 4.20
|
|
17.4 %
|
|
$ 9.70
|
|
$ 6.46
|
|
50.2 %
|
Income Per
Share
|
$ 4.93
|
|
$ 4.20
|
|
17.4 %
|
|
$ 9.70
|
|
$ 6.46
|
|
50.2 %
|
Weighted Average
Shares Outstanding
|
75.8
|
|
80.7
|
|
(6.1) %
|
|
76.5
|
|
80.7
|
|
(5.2) %
|
|
|
|
|
|
|
|
|
|
|
|
|
nm – not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
|
Consolidated Condensed
Balance Sheets
|
(Amounts In
Millions)
|
(Unaudited)
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2022
|
|
2021
|
Assets:
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
154.9
|
|
$
100.7
|
Accounts Receivable,
Net
|
|
|
774.3
|
|
|
734.0
|
Inventories
|
|
|
3,055.2
|
|
|
3,129.0
|
Other Current
Assets
|
|
|
147.9
|
|
|
111.7
|
Total Current
Assets
|
|
|
4,132.3
|
|
|
4,075.4
|
Property and
Equipment, Net
|
|
|
2,402.3
|
|
|
2,442.2
|
Operating Lease
Right-of-Use Assets
|
|
|
2,435.4
|
|
|
2,451.4
|
Intangibles
|
|
|
2,817.6
|
|
|
2,765.6
|
Other Long-Term
Assets
|
|
|
1,716.5
|
|
|
1,730.0
|
Total
Assets
|
|
$
13,504.1
|
|
$
13,464.6
|
|
|
|
|
|
|
|
Liabilities and
Equity:
|
|
|
|
|
|
|
Floor Plan Notes
Payable
|
|
$
1,205.6
|
|
$
1,144.8
|
Floor Plan Notes
Payable – Non-Trade
|
|
|
1,236.5
|
|
|
1,409.9
|
Accounts
Payable
|
|
|
841.1
|
|
|
767.1
|
Accrued Expenses and
Other Current Liabilities
|
|
|
853.1
|
|
|
870.3
|
Current Portion
Long-Term Debt
|
|
|
78.5
|
|
|
82.0
|
Liabilities Held for
Sale
|
|
|
—
|
|
|
0.5
|
Total Current
Liabilities
|
|
|
4,214.8
|
|
|
4,274.6
|
Long-Term
Debt
|
|
|
1,407.5
|
|
|
1,392.0
|
Long-Term Operating
Lease Liabilities
|
|
|
2,356.0
|
|
|
2,373.6
|
Other Long-Term
Liabilities
|
|
|
1,306.4
|
|
|
1,329.4
|
Total
Liabilities
|
|
|
9,284.7
|
|
|
9,369.6
|
Equity
|
|
|
4,219.4
|
|
|
4,095.0
|
Total Liabilities and
Equity
|
|
$
13,504.1
|
|
$
13,464.6
|
PENSKE AUTOMOTIVE
GROUP, INC.
|
Consolidated
Operations
|
Selected
Data
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Geographic Revenue
Mix:
|
|
|
|
|
|
|
|
North
America
|
61.0 %
|
|
60.7 %
|
|
60.1 %
|
|
60.2 %
|
U.K.
|
31.8 %
|
|
31.4 %
|
|
32.1 %
|
|
31.7 %
|
Other
International
|
7.2 %
|
|
7.9 %
|
|
7.8 %
|
|
8.1 %
|
Total
|
100.0 %
|
|
100.0 %
|
|
100.0 %
|
|
100.0 %
|
|
|
|
|
|
|
|
|
Revenue: (Amounts in
Millions)
|
|
|
|
|
|
|
|
Retail
Automotive
|
$
5,997.3
|
|
$
6,197.6
|
|
$ 12,026.5
|
|
$ 11,404.5
|
Retail Commercial
Truck
|
768.7
|
|
625.3
|
|
1,561.0
|
|
1,060.0
|
Commercial Vehicle
Distribution and Other
|
140.9
|
|
164.6
|
|
294.8
|
|
296.8
|
Total
|
$
6,906.9
|
|
$
6,987.5
|
|
$ 13,882.3
|
|
$ 12,761.3
|
|
|
|
|
|
|
|
|
Gross Profit: (Amounts
in Millions)
|
|
|
|
|
|
|
|
Retail
Automotive
|
$
1,060.0
|
|
$
1,040.4
|
|
$
2,110.7
|
|
$
1,840.3
|
Retail Commercial
Truck
|
136.0
|
|
102.7
|
|
277.2
|
|
182.7
|
Commercial Vehicle
Distribution and Other
|
41.0
|
|
39.6
|
|
80.8
|
|
72.9
|
Total
|
$
1,237.0
|
|
$
1,182.7
|
|
$
2,468.7
|
|
$
2,095.9
|
|
|
|
|
|
|
|
|
Gross
Margin:
|
|
|
|
|
|
|
|
Retail
Automotive
|
17.7 %
|
|
16.8 %
|
|
17.6 %
|
|
16.1 %
|
Retail Commercial
Truck
|
17.7 %
|
|
16.4 %
|
|
17.8 %
|
|
17.2 %
|
Commercial Vehicle
Distribution and Other
|
29.1 %
|
|
24.1 %
|
|
27.4 %
|
|
24.6 %
|
Total
|
17.9 %
|
|
16.9 %
|
|
17.8 %
|
|
16.4 %
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Operating Items as a
Percentage of Revenue:
|
|
|
|
|
|
|
|
Gross
Profit
|
17.9 %
|
|
16.9 %
|
|
17.8 %
|
|
16.4 %
|
Selling, General and
Administrative Expenses
|
11.8 %
|
|
10.7 %
|
|
11.6 %
|
|
11.1 %
|
Operating
Income
|
5.6 %
|
|
5.8 %
|
|
5.7 %
|
|
4.9 %
|
Income from Continuing
Operations Before Income Taxes
|
7.2 %
|
|
6.6 %
|
|
7.2 %
|
|
5.6 %
|
|
|
|
|
|
|
|
|
Operating Items as a
Percentage of Total Gross Profit:
|
|
|
|
|
|
|
|
Selling, General and
Administrative Expenses
|
66.1 %
|
|
63.4 %
|
|
65.4 %
|
|
67.5 %
|
Operating
Income
|
31.3 %
|
|
34.0 %
|
|
32.0 %
|
|
29.7 %
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
(Amounts in
Millions)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
$ 548.3
|
|
$ 513.6
|
|
$
1,094.3
|
|
$ 808.4
|
Floor Plan
Credits
|
$ 10.1
|
|
$ 14.9
|
|
$ 19.9
|
|
$ 27.2
|
Rent Expense
|
$ 61.0
|
|
$ 59.5
|
|
$ 121.7
|
|
$ 118.4
|
_______________________
|
|
|
|
|
|
|
|
|
|
|
|
(1)
See the following Non-GAAP reconciliation
table.
|
|
|
|
|
|
|
|
|
|
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
|
Retail Automotive
Operations
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
Retail Automotive
Units:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Retail
|
|
45,515
|
|
|
57,789
|
|
(21.2) %
|
|
|
91,043
|
|
|
108,198
|
|
(15.9) %
|
Used Retail
|
|
69,994
|
|
|
74,708
|
|
(6.3) %
|
|
|
138,225
|
|
|
135,151
|
|
2.3 %
|
Total
|
|
115,509
|
|
|
132,497
|
|
(12.8) %
|
|
|
229,268
|
|
|
243,349
|
|
(5.8) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Revenue: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
2,446.0
|
|
$
|
2,811.3
|
|
(13.0) %
|
|
$
|
4,891.5
|
|
$
|
5,232.7
|
|
(6.5) %
|
Used
Vehicles
|
|
2,387.8
|
|
|
2,327.6
|
|
2.6 %
|
|
|
4,810.7
|
|
|
4,135.6
|
|
16.3 %
|
Finance and Insurance,
Net
|
|
221.4
|
|
|
212.3
|
|
4.3 %
|
|
|
438.7
|
|
|
381.1
|
|
15.1 %
|
Service and
Parts
|
|
597.0
|
|
|
546.2
|
|
9.3 %
|
|
|
1,183.2
|
|
|
1,049.4
|
|
12.8 %
|
Fleet and
Wholesale
|
|
345.1
|
|
|
300.2
|
|
15.0 %
|
|
|
702.4
|
|
|
605.7
|
|
16.0 %
|
Total
Revenue
|
$
|
5,997.3
|
|
$
|
6,197.6
|
|
(3.2) %
|
|
$
|
12,026.5
|
|
$
|
11,404.5
|
|
5.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Gross
Profit: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
312.3
|
|
$
|
276.6
|
|
12.9 %
|
|
$
|
623.7
|
|
$
|
481.6
|
|
29.5 %
|
Used
Vehicles
|
|
155.2
|
|
|
194.1
|
|
(20.0) %
|
|
|
311.0
|
|
|
303.5
|
|
2.5 %
|
Finance and Insurance,
Net
|
|
221.4
|
|
|
212.3
|
|
4.3 %
|
|
|
438.7
|
|
|
381.1
|
|
15.1 %
|
Service and
Parts
|
|
359.2
|
|
|
337.0
|
|
6.6 %
|
|
|
709.7
|
|
|
642.4
|
|
10.5 %
|
Fleet and
Wholesale
|
|
11.9
|
|
|
20.4
|
|
(41.7) %
|
|
|
27.6
|
|
|
31.7
|
|
(12.9) %
|
Total Gross
Profit
|
$
|
1,060.0
|
|
$
|
1,040.4
|
|
1.9 %
|
|
$
|
2,110.7
|
|
$
|
1,840.3
|
|
14.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Revenue Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
53,740
|
|
$
|
48,648
|
|
10.5 %
|
|
$
|
53,727
|
|
$
|
48,363
|
|
11.1 %
|
Used
Vehicles
|
|
34,114
|
|
|
31,156
|
|
9.5 %
|
|
|
34,803
|
|
|
30,599
|
|
13.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Gross
Profit Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
6,860
|
|
$
|
4,786
|
|
43.3 %
|
|
$
|
6,850
|
|
$
|
4,451
|
|
53.9 %
|
Used
Vehicles
|
|
2,218
|
|
|
2,598
|
|
(14.6) %
|
|
|
2,250
|
|
|
2,246
|
|
0.2 %
|
Finance and
Insurance
|
|
1,917
|
|
|
1,603
|
|
19.6 %
|
|
|
1,914
|
|
|
1,566
|
|
22.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Gross
Margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
12.8 %
|
|
|
9.8 %
|
|
+300bps
|
|
|
12.8 %
|
|
|
9.2 %
|
|
+360bps
|
Used
Vehicles
|
|
6.5 %
|
|
|
8.3 %
|
|
(180)bps
|
|
|
6.5 %
|
|
|
7.3 %
|
|
(80)bps
|
Service and
Parts
|
|
60.2 %
|
|
|
61.7 %
|
|
(150)bps
|
|
|
60.0 %
|
|
|
61.2 %
|
|
(120)bps
|
Fleet and
Wholesale
|
|
3.4 %
|
|
|
6.8 %
|
|
(340)bps
|
|
|
3.9 %
|
|
|
5.2 %
|
|
(130)bps
|
Total Gross
Margin
|
|
17.7 %
|
|
|
16.8 %
|
|
+90bps
|
|
|
17.6 %
|
|
|
16.1 %
|
|
+150bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Revenue Mix Percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
40.8 %
|
|
|
45.4 %
|
|
(460)bps
|
|
|
40.7 %
|
|
|
45.9 %
|
|
(520)bps
|
Used
Vehicles
|
|
39.8 %
|
|
|
37.6 %
|
|
+220bps
|
|
|
40.0 %
|
|
|
36.3 %
|
|
+370bps
|
Finance and Insurance,
Net
|
|
3.7 %
|
|
|
3.4 %
|
|
+30bps
|
|
|
3.6 %
|
|
|
3.3 %
|
|
+30bps
|
Service and
Parts
|
|
10.0 %
|
|
|
8.8 %
|
|
+120bps
|
|
|
9.8 %
|
|
|
9.2 %
|
|
+60bps
|
Fleet and
Wholesale
|
|
5.7 %
|
|
|
4.8 %
|
|
+90bps
|
|
|
5.9 %
|
|
|
5.3 %
|
|
+60bps
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Gross
Profit Mix Percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
29.5 %
|
|
|
26.6 %
|
|
+290bps
|
|
|
29.5 %
|
|
|
26.2 %
|
|
+330bps
|
Used
Vehicles
|
|
14.6 %
|
|
|
18.7 %
|
|
(410)bps
|
|
|
14.7 %
|
|
|
16.5 %
|
|
(180)bps
|
Finance and Insurance,
Net
|
|
20.9 %
|
|
|
20.4 %
|
|
+50bps
|
|
|
20.8 %
|
|
|
20.7 %
|
|
+10bps
|
Service and
Parts
|
|
33.9 %
|
|
|
32.4 %
|
|
+150bps
|
|
|
33.6 %
|
|
|
34.9 %
|
|
(130)bps
|
Fleet and
Wholesale
|
|
1.1 %
|
|
|
1.9 %
|
|
(80)bps
|
|
|
1.4 %
|
|
|
1.7 %
|
|
(30)bps
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
100.0 %
|
|
|
100.0 %
|
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
|
Retail Automotive
Operations Same-Store
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
Retail Automotive
Same-Store Units:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Retail
|
|
42,980
|
|
|
57,715
|
|
(25.5) %
|
|
|
86,704
|
|
|
107,944
|
|
(19.7) %
|
Used Retail
|
|
66,479
|
|
|
74,267
|
|
(10.5) %
|
|
|
131,756
|
|
|
134,477
|
|
(2.0) %
|
Total
|
|
109,459
|
|
|
131,982
|
|
(17.1) %
|
|
|
218,460
|
|
|
242,421
|
|
(9.9) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Revenue: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
2,307.0
|
|
$
|
2,806.3
|
|
(17.8) %
|
|
$
|
4,640.7
|
|
$
|
5,212.0
|
|
(11.0) %
|
Used
Vehicles
|
|
2,278.0
|
|
|
2,316.1
|
|
(1.6) %
|
|
|
4,603.0
|
|
|
4,113.7
|
|
11.9 %
|
Finance and Insurance,
Net
|
|
213.5
|
|
|
211.7
|
|
0.9 %
|
|
|
424.0
|
|
|
379.3
|
|
11.8 %
|
Service and
Parts
|
|
569.0
|
|
|
544.8
|
|
4.4 %
|
|
|
1,135.0
|
|
|
1,046.5
|
|
8.5 %
|
Fleet and
Wholesale
|
|
326.2
|
|
|
299.6
|
|
8.9 %
|
|
|
658.7
|
|
|
604.1
|
|
9.0 %
|
Total
Revenue
|
$
|
5,693.7
|
|
$
|
6,178.5
|
|
(7.8) %
|
|
$
|
11,461.4
|
|
$
|
11,355.6
|
|
0.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Gross Profit: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
294.5
|
|
$
|
275.8
|
|
6.8 %
|
|
$
|
589.9
|
|
$
|
479.3
|
|
23.1 %
|
Used
Vehicles
|
|
148.6
|
|
|
193.2
|
|
(23.1) %
|
|
|
298.6
|
|
|
302.0
|
|
(1.1) %
|
Finance and Insurance,
Net
|
|
213.5
|
|
|
211.7
|
|
0.9 %
|
|
|
424.0
|
|
|
379.3
|
|
11.8 %
|
Service and
Parts
|
|
343.6
|
|
|
335.9
|
|
2.3 %
|
|
|
682.6
|
|
|
640.0
|
|
6.7 %
|
Fleet and
Wholesale
|
|
10.8
|
|
|
20.5
|
|
(47.3) %
|
|
|
25.0
|
|
|
31.7
|
|
(21.1) %
|
Total Gross
Profit
|
$
|
1,011.0
|
|
$
|
1,037.1
|
|
(2.5) %
|
|
$
|
2,020.1
|
|
$
|
1,832.3
|
|
10.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Revenue Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
53,675
|
|
$
|
48,623
|
|
10.4 %
|
|
$
|
53,523
|
|
$
|
48,285
|
|
10.8 %
|
Used
Vehicles
|
|
34,267
|
|
|
31,186
|
|
9.9 %
|
|
|
34,936
|
|
|
30,590
|
|
14.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Gross Profit Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
6,851
|
|
$
|
4,779
|
|
43.4 %
|
|
$
|
6,804
|
|
$
|
4,440
|
|
53.2 %
|
Used
Vehicles
|
|
2,235
|
|
|
2,602
|
|
(14.1) %
|
|
|
2,266
|
|
|
2,246
|
|
0.9 %
|
Finance and
Insurance
|
|
1,951
|
|
|
1,604
|
|
21.6 %
|
|
|
1,941
|
|
|
1,565
|
|
24.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Gross Margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
12.8 %
|
|
|
9.8 %
|
|
+300bps
|
|
|
12.7 %
|
|
|
9.2 %
|
|
+350bps
|
Used
Vehicles
|
|
6.5 %
|
|
|
8.3 %
|
|
(180)bps
|
|
|
6.5 %
|
|
|
7.3 %
|
|
(80)bps
|
Service and
Parts
|
|
60.4 %
|
|
|
61.7 %
|
|
(130)bps
|
|
|
60.1 %
|
|
|
61.2 %
|
|
(110)bps
|
Fleet and
Wholesale
|
|
3.3 %
|
|
|
6.8 %
|
|
(350)bps
|
|
|
3.8 %
|
|
|
5.2 %
|
|
(140)bps
|
Total Gross
Margin
|
|
17.8 %
|
|
|
16.8 %
|
|
+100bps
|
|
|
17.6 %
|
|
|
16.1 %
|
|
+150bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Revenue Mix Percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
40.5 %
|
|
|
45.4 %
|
|
(490)bps
|
|
|
40.5 %
|
|
|
45.9 %
|
|
(540)bps
|
Used
Vehicles
|
|
40.0 %
|
|
|
37.5 %
|
|
+250bps
|
|
|
40.2 %
|
|
|
36.2 %
|
|
+400bps
|
Finance and Insurance,
Net
|
|
3.7 %
|
|
|
3.4 %
|
|
+30bps
|
|
|
3.7 %
|
|
|
3.3 %
|
|
+40bps
|
Service and
Parts
|
|
10.0 %
|
|
|
8.8 %
|
|
+120bps
|
|
|
9.9 %
|
|
|
9.2 %
|
|
+70bps
|
Fleet and
Wholesale
|
|
5.8 %
|
|
|
4.9 %
|
|
+90bps
|
|
|
5.7 %
|
|
|
5.4 %
|
|
+30bps
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Gross Profit Mix Percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
29.1 %
|
|
|
26.6 %
|
|
+250bps
|
|
|
29.2 %
|
|
|
26.2 %
|
|
+300bps
|
Used
Vehicles
|
|
14.7 %
|
|
|
18.6 %
|
|
(390)bps
|
|
|
14.8 %
|
|
|
16.5 %
|
|
(170)bps
|
Finance and Insurance,
Net
|
|
21.1 %
|
|
|
20.4 %
|
|
+70bps
|
|
|
21.0 %
|
|
|
20.7 %
|
|
+30bps
|
Service and
Parts
|
|
34.0 %
|
|
|
32.4 %
|
|
+160bps
|
|
|
33.8 %
|
|
|
34.9 %
|
|
(110)bps
|
Fleet and
Wholesale
|
|
1.1 %
|
|
|
2.0 %
|
|
(90)bps
|
|
|
1.2 %
|
|
|
1.7 %
|
|
(50)bps
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
100.0 %
|
|
|
100.0 %
|
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
|
Retail Commercial Truck
Operations
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
Retail Commercial Truck
Units:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Retail
|
|
3,531
|
|
|
3,314
|
|
6.5 %
|
|
|
7,386
|
|
|
5,479
|
|
34.8 %
|
Used Retail
|
|
643
|
|
|
832
|
|
(22.7) %
|
|
|
1,480
|
|
|
1,673
|
|
(11.5) %
|
Total
|
|
4,174
|
|
|
4,146
|
|
0.7 %
|
|
|
8,866
|
|
|
7,152
|
|
24.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Revenue: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
447.3
|
|
$
|
399.2
|
|
12.0 %
|
|
$
|
919.0
|
|
$
|
646.7
|
|
42.1 %
|
Used
Vehicles
|
|
78.7
|
|
|
59.0
|
|
33.4 %
|
|
|
179.0
|
|
|
110.0
|
|
62.7 %
|
Finance and Insurance,
Net
|
|
4.5
|
|
|
3.8
|
|
18.4 %
|
|
|
10.9
|
|
|
6.9
|
|
58.0 %
|
Service and
Parts
|
|
219.6
|
|
|
157.3
|
|
39.6 %
|
|
|
416.6
|
|
|
281.9
|
|
47.8 %
|
Wholesale and
Other
|
|
18.6
|
|
|
6.0
|
|
210.0 %
|
|
|
35.5
|
|
|
14.5
|
|
144.8 %
|
Total
Revenue
|
$
|
768.7
|
|
$
|
625.3
|
|
22.9 %
|
|
$
|
1,561.0
|
|
$
|
1,060.0
|
|
47.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Gross Profit: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
26.5
|
|
$
|
19.6
|
|
35.2 %
|
|
$
|
55.5
|
|
$
|
33.8
|
|
64.2 %
|
Used
Vehicles
|
|
5.9
|
|
|
9.5
|
|
(37.9) %
|
|
|
21.8
|
|
|
15.9
|
|
37.1 %
|
Finance and Insurance,
Net
|
|
4.5
|
|
|
3.8
|
|
18.4 %
|
|
|
10.9
|
|
|
6.9
|
|
58.0 %
|
Service and
Parts
|
|
92.3
|
|
|
66.3
|
|
39.2 %
|
|
|
176.1
|
|
|
119.0
|
|
48.0 %
|
Wholesale and
Other
|
|
6.8
|
|
|
3.5
|
|
94.3 %
|
|
|
12.9
|
|
|
7.1
|
|
81.7 %
|
Total Gross
Profit
|
$
|
136.0
|
|
$
|
102.7
|
|
32.4 %
|
|
$
|
277.2
|
|
$
|
182.7
|
|
51.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Revenue Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
126,676
|
|
$
|
120,445
|
|
5.2 %
|
|
$
|
124,422
|
|
$
|
118,026
|
|
5.4 %
|
Used
Vehicles
|
|
122,415
|
|
|
70,932
|
|
72.6 %
|
|
|
120,963
|
|
|
65,729
|
|
84.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Gross Profit Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
7,504
|
|
$
|
5,909
|
|
27.0 %
|
|
$
|
7,508
|
|
$
|
6,176
|
|
21.6 %
|
Used
Vehicles
|
|
9,133
|
|
|
11,381
|
|
(19.8) %
|
|
|
14,691
|
|
|
9,518
|
|
54.3 %
|
Finance and
Insurance
|
|
1,082
|
|
|
916
|
|
18.1 %
|
|
|
1,230
|
|
|
971
|
|
26.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Gross Margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
5.9 %
|
|
|
4.9 %
|
|
+100bps
|
|
|
6.0 %
|
|
|
5.2 %
|
|
+80bps
|
Used
Vehicles
|
|
7.5 %
|
|
|
16.1 %
|
|
(860)bps
|
|
|
12.2 %
|
|
|
14.5 %
|
|
(230)bps
|
Service and
Parts
|
|
42.0 %
|
|
|
42.1 %
|
|
(10)bps
|
|
|
42.3 %
|
|
|
42.2 %
|
|
+10bps
|
Wholesale and
Other
|
|
36.6 %
|
|
|
58.3 %
|
|
(2,170)bps
|
|
|
36.3 %
|
|
|
49.0 %
|
|
(1,270)bps
|
Total Gross
Margin
|
|
17.7 %
|
|
|
16.4 %
|
|
+130bps
|
|
|
17.8 %
|
|
|
17.2 %
|
|
+60bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Revenue Mix Percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
58.2 %
|
|
|
63.8 %
|
|
(560)bps
|
|
|
58.9 %
|
|
|
61.0 %
|
|
(210)bps
|
Used
Vehicles
|
|
10.2 %
|
|
|
9.4 %
|
|
+80bps
|
|
|
11.5 %
|
|
|
10.4 %
|
|
+110bps
|
Finance and Insurance,
Net
|
|
0.6 %
|
|
|
0.6 %
|
|
—bps
|
|
|
0.7 %
|
|
|
0.7 %
|
|
—bps
|
Service and
Parts
|
|
28.6 %
|
|
|
25.2 %
|
|
+340bps
|
|
|
26.7 %
|
|
|
26.6 %
|
|
+10bps
|
Wholesale and
Other
|
|
2.4 %
|
|
|
1.0 %
|
|
+140bps
|
|
|
2.2 %
|
|
|
1.3 %
|
|
+90bps
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Gross Profit Mix Percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
19.5 %
|
|
|
19.1 %
|
|
+40bps
|
|
|
20.0 %
|
|
|
18.5 %
|
|
+150bps
|
Used
Vehicles
|
|
4.3 %
|
|
|
9.3 %
|
|
(500)bps
|
|
|
7.9 %
|
|
|
8.7 %
|
|
(80)bps
|
Finance and Insurance,
Net
|
|
3.3 %
|
|
|
3.7 %
|
|
(40)bps
|
|
|
3.9 %
|
|
|
3.8 %
|
|
+10bps
|
Service and
Parts
|
|
67.9 %
|
|
|
64.6 %
|
|
+330bps
|
|
|
63.5 %
|
|
|
65.1 %
|
|
(160)bps
|
Wholesale and
Other
|
|
5.0 %
|
|
|
3.3 %
|
|
+170bps
|
|
|
4.7 %
|
|
|
3.9 %
|
|
+80bps
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
100.0 %
|
|
|
100.0 %
|
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
|
Retail Commercial Truck
Operations Same-Store
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
Retail Commercial Truck
Same-Store Units:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Retail
|
|
3,216
|
|
|
3,314
|
|
(3.0) %
|
|
|
5,774
|
|
|
4,935
|
|
17.0 %
|
Used Retail
|
|
583
|
|
|
832
|
|
(29.9) %
|
|
|
1,167
|
|
|
1,644
|
|
(29.0) %
|
Total
|
|
3,799
|
|
|
4,146
|
|
(8.4) %
|
|
|
6,941
|
|
|
6,579
|
|
5.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Revenue: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
406.7
|
|
$
|
399.2
|
|
1.9 %
|
|
$
|
715.2
|
|
$
|
587.5
|
|
21.7 %
|
Used
Vehicles
|
|
71.5
|
|
|
59.0
|
|
21.2 %
|
|
|
142.2
|
|
|
107.7
|
|
32.0 %
|
Finance and Insurance,
Net
|
|
4.1
|
|
|
3.8
|
|
7.9 %
|
|
|
9.2
|
|
|
6.9
|
|
33.3 %
|
Service and
Parts
|
|
193.2
|
|
|
157.1
|
|
23.0 %
|
|
|
323.7
|
|
|
260.9
|
|
24.1 %
|
Wholesale and
Other
|
|
18.0
|
|
|
6.0
|
|
200.0 %
|
|
|
31.5
|
|
|
14.5
|
|
117.2 %
|
Total
Revenue
|
$
|
693.5
|
|
$
|
625.1
|
|
10.9 %
|
|
$
|
1,221.8
|
|
$
|
977.5
|
|
25.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Gross Profit: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
23.1
|
|
$
|
19.6
|
|
17.9 %
|
|
$
|
45.0
|
|
$
|
32.2
|
|
39.8 %
|
Used
Vehicles
|
|
5.7
|
|
|
9.5
|
|
(40.0) %
|
|
|
17.4
|
|
|
15.5
|
|
12.3 %
|
Finance and Insurance,
Net
|
|
4.1
|
|
|
3.8
|
|
7.9 %
|
|
|
9.2
|
|
|
6.9
|
|
33.3 %
|
Service and
Parts
|
|
81.6
|
|
|
66.2
|
|
23.3 %
|
|
|
137.4
|
|
|
110.7
|
|
24.1 %
|
Wholesale and
Other
|
|
6.7
|
|
|
3.5
|
|
91.4 %
|
|
|
12.7
|
|
|
6.9
|
|
84.1 %
|
Total Gross
Profit
|
$
|
121.2
|
|
$
|
102.6
|
|
18.1 %
|
|
$
|
221.7
|
|
$
|
172.2
|
|
28.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Revenue Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
126,458
|
|
$
|
120,445
|
|
5.0 %
|
|
$
|
123,861
|
|
$
|
119,038
|
|
4.1 %
|
Used
Vehicles
|
|
122,707
|
|
|
70,932
|
|
73.0 %
|
|
|
121,865
|
|
|
65,536
|
|
86.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Gross Profit Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
7,178
|
|
$
|
5,909
|
|
21.5 %
|
|
$
|
7,800
|
|
$
|
6,516
|
|
19.7 %
|
Used
Vehicles
|
|
9,850
|
|
|
11,381
|
|
(13.5) %
|
|
|
14,947
|
|
|
9,434
|
|
58.4 %
|
Finance and
Insurance
|
|
1,090
|
|
|
916
|
|
19.0 %
|
|
|
1,329
|
|
|
1,047
|
|
26.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Gross Margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
5.7 %
|
|
|
4.9 %
|
|
+80bps
|
|
|
6.3 %
|
|
|
5.5 %
|
|
+80bps
|
Used
Vehicles
|
|
8.0 %
|
|
|
16.1 %
|
|
(810)bps
|
|
|
12.2 %
|
|
|
14.4 %
|
|
(220)bps
|
Service and
Parts
|
|
42.2 %
|
|
|
42.1 %
|
|
+10bps
|
|
|
42.4 %
|
|
|
42.4 %
|
|
—bps
|
Wholesale and
Other
|
|
37.2 %
|
|
|
58.3 %
|
|
(2,110)bps
|
|
|
40.3 %
|
|
|
47.6 %
|
|
(730)bps
|
Total Gross
Margin
|
|
17.5 %
|
|
|
16.4 %
|
|
+110bps
|
|
|
18.1 %
|
|
|
17.6 %
|
|
+50bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Revenue Mix Percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
58.6 %
|
|
|
63.9 %
|
|
(530)bps
|
|
|
58.5 %
|
|
|
60.1 %
|
|
(160)bps
|
Used
Vehicles
|
|
10.3 %
|
|
|
9.4 %
|
|
+90bps
|
|
|
11.6 %
|
|
|
11.0 %
|
|
+60bps
|
Finance and Insurance,
Net
|
|
0.6 %
|
|
|
0.6 %
|
|
—bps
|
|
|
0.8 %
|
|
|
0.7 %
|
|
+10bps
|
Service and
Parts
|
|
27.9 %
|
|
|
25.1 %
|
|
+280bps
|
|
|
26.5 %
|
|
|
26.7 %
|
|
(20)bps
|
Wholesale and
Other
|
|
2.6 %
|
|
|
1.0 %
|
|
+160bps
|
|
|
2.6 %
|
|
|
1.5 %
|
|
+110bps
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Gross Profit Mix Percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
19.1 %
|
|
|
19.1 %
|
|
—bps
|
|
|
20.3 %
|
|
|
18.7 %
|
|
+160bps
|
Used
Vehicles
|
|
4.7 %
|
|
|
9.3 %
|
|
(460)bps
|
|
|
7.8 %
|
|
|
9.0 %
|
|
(120)bps
|
Finance and Insurance,
Net
|
|
3.4 %
|
|
|
3.7 %
|
|
(30)bps
|
|
|
4.1 %
|
|
|
4.0 %
|
|
+10bps
|
Service and
Parts
|
|
67.3 %
|
|
|
64.5 %
|
|
+280bps
|
|
|
62.0 %
|
|
|
64.3 %
|
|
(230)bps
|
Wholesale and
Other
|
|
5.5 %
|
|
|
3.4 %
|
|
+210bps
|
|
|
5.8 %
|
|
|
4.0 %
|
|
+180bps
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
100.0 %
|
|
|
100.0 %
|
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
|
Supplemental
Data
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Retail Automotive
Revenue Mix:
|
|
|
|
|
|
|
|
Premium:
|
|
|
|
|
|
|
|
BMW / MINI
|
25 %
|
|
23 %
|
|
25 %
|
|
23 %
|
Audi
|
11 %
|
|
12 %
|
|
11 %
|
|
12 %
|
Mercedes-Benz
|
10 %
|
|
10 %
|
|
10 %
|
|
10 %
|
Land Rover /
Jaguar
|
7 %
|
|
9 %
|
|
7 %
|
|
9 %
|
Porsche
|
8 %
|
|
7 %
|
|
7 %
|
|
7 %
|
Ferrari /
Maserati
|
3 %
|
|
2 %
|
|
3 %
|
|
3 %
|
Lexus
|
3 %
|
|
3 %
|
|
3 %
|
|
3 %
|
Acura
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
Bentley
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
Others
|
1 %
|
|
2 %
|
|
2 %
|
|
2 %
|
Total
Premium
|
70 %
|
|
70 %
|
|
70 %
|
|
71 %
|
Volume
Non-U.S.:
|
|
|
|
|
|
|
|
Toyota
|
11 %
|
|
11 %
|
|
11 %
|
|
11 %
|
Honda
|
5 %
|
|
6 %
|
|
5 %
|
|
6 %
|
Volkswagen
|
2 %
|
|
2 %
|
|
2 %
|
|
2 %
|
Nissan
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
Others
|
2 %
|
|
2 %
|
|
2 %
|
|
2 %
|
Total Volume
Non-U.S.
|
21 %
|
|
22 %
|
|
21 %
|
|
22 %
|
U.S.:
|
|
|
|
|
|
|
|
General Motors /
Chrysler
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
CarShop Used
Vehicle Centers
|
8 %
|
|
7 %
|
|
8 %
|
|
6 %
|
Total
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
Capital Expenditures
/ Stock Repurchases:
|
2022
|
|
2021
|
|
2022
|
|
2021
|
(Amounts in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
|
81.9
|
|
$
|
|
48.4
|
|
$
|
|
138.1
|
|
$
|
|
90.8
|
Cash paid for
acquisitions, net of cash acquired
|
$
|
|
132.3
|
|
$
|
|
278.0
|
|
$
|
|
225.9
|
|
$
|
|
278.0
|
Stock
repurchases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate purchase
price
|
$
|
|
173.4
|
|
$
|
|
40.9
|
|
$
|
|
292.6
|
|
$
|
|
40.9
|
Shares
repurchased
|
|
|
1.7
|
|
|
|
0.5
|
|
|
|
2.9
|
|
|
|
0.5
|
Balance Sheet and
Other Highlights:
|
June 30,
2022
|
|
December 31,
2021
|
(Amounts in
Millions)
|
|
|
|
|
|
Cash and Cash
Equivalents
|
$
|
154.9
|
|
$
|
100.7
|
Inventories
|
$
|
3,055.2
|
|
$
|
3,129.0
|
Total Floor Plan Notes
Payable
|
$
|
2,442.1
|
|
$
|
2,554.7
|
Total Long-Term
Debt
|
$
|
1,486.0
|
|
$
|
1,474.0
|
Equity
|
$
|
4,219.4
|
|
$
|
4,095.0
|
|
|
|
|
|
|
Debt to Total
Capitalization Ratio
|
|
26.0 %
|
|
|
26.4 %
|
Leverage Ratio
(1)
|
|
0.7 x
|
|
|
0.8 x
|
New vehicle days'
supply
|
|
21 days
|
|
|
17 days
|
Used vehicle days'
supply
|
|
42 days
|
|
|
60 days
|
__________________________
|
|
|
|
|
|
(1)
See the following Non-GAAP reconciliation
table.
|
|
|
|
|
|
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 six months ended
June 30, 2022, and 2021:
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
(Amounts in
Millions)
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
%
Change
|
|
2022
|
|
2021
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Continuing
Operations
|
$
|
374.0
|
|
$
|
338.8
|
|
10.4 %
|
|
$
|
741.9
|
|
$
|
521.3
|
|
42.3 %
|
Tax legislation
changes (1)
|
|
—
|
|
|
8.8
|
|
nm
|
|
|
—
|
|
|
8.8
|
|
nm
|
Debt redemption
costs (2)
|
|
—
|
|
|
12.6
|
|
nm
|
|
|
—
|
|
|
12.6
|
|
nm
|
Adjusted Income from
Continuing Operations
|
$
|
374.0
|
|
$
|
360.2
|
|
3.8 %
|
|
$
|
741.9
|
|
$
|
542.7
|
|
36.7 %
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
%
Change
|
|
2022
|
|
2021
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share from
Continuing Operations
|
$
|
4.93
|
|
$
|
4.20
|
|
17.4 %
|
|
$
|
9.70
|
|
$
|
6.46
|
|
50.2 %
|
Tax legislation
changes (1)
|
|
—
|
|
|
0.11
|
|
nm
|
|
|
—
|
|
|
0.11
|
|
nm
|
Debt redemption
costs (2)
|
|
—
|
|
|
0.16
|
|
nm
|
|
|
—
|
|
|
0.16
|
|
nm
|
Adjusted Earnings Per
Share from Continuing Operations
|
$
|
4.93
|
|
$
|
4.47
|
|
10.3 %
|
|
$
|
9.70
|
|
$
|
6.73
|
|
44.1 %
|
The following table
reconciles income from continuing operations before taxes
(EBT) to adjusted income from
continuing operations before taxes (EBT) for the three and six months ending June 30,
2022, and 2021:
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
(Amounts in
Millions)
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
%
Change
|
|
2022
|
|
2021
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Continuing
Operations Before Taxes
|
$
|
499.6
|
|
$
|
463.7
|
|
7.7 %
|
|
$
|
997.2
|
|
$
|
711.3
|
|
40.2 %
|
Debt redemption
costs (2)
|
|
—
|
|
|
17.0
|
|
nm
|
|
|
—
|
|
|
17.0
|
|
nm
|
Adjusted Income from
Continuing Operations Before Taxes
|
$
|
499.6
|
|
$
|
480.7
|
|
3.9 %
|
|
$
|
997.2
|
|
$
|
728.3
|
|
36.9 %
|
|
(1) For the three
and six months ended June 30, 2021, represents a revaluation of our
U.K. deferred tax assets and liabilities due to an increase in the
U.K. corporate tax rate from 19% currently to 25%, effective April
1, 2023
|
(2) Related to
expenses in connection with the redemption of our 5.5% senior
subordinated notes due 2026 in 2021
|
PENSKE AUTOMOTIVE
GROUP, INC.
|
Consolidated
Non-GAAP Reconciliations
|
(Unaudited)
|
|
The following tables
reconcile reported net income to earnings before interest, taxes,
depreciation, and amortization ("EBITDA") for the three and six
months ended June 30, 2022 and 2021:
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
2022 vs.
2021
|
(Amounts in Millions)
|
2022
|
|
2021
|
|
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
$
|
375.9
|
|
$
|
340.4
|
|
$
|
35.5
|
|
10.4 %
|
Add:
Depreciation
|
|
31.7
|
|
|
30.2
|
|
|
1.5
|
|
5.0 %
|
Other Interest
Expense
|
|
17.0
|
|
|
19.7
|
|
|
(2.7)
|
|
(13.7) %
|
Income
Taxes
|
|
123.7
|
|
|
123.4
|
|
|
0.3
|
|
0.2 %
|
Income from
Discontinued Operations, net of tax
|
|
—
|
|
|
(0.1)
|
|
|
0.1
|
|
nm
|
EBITDA
|
$
|
548.3
|
|
$
|
513.6
|
|
$
|
34.7
|
|
6.8 %
|
Add: Debt redemption
costs (2)
|
|
—
|
|
|
17.0
|
|
|
(17.0)
|
|
nm
|
Adjusted
EBITDA
|
$
|
548.3
|
|
$
|
530.6
|
|
$
|
17.7
|
|
3.3 %
|
|
Six Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
2022 vs.
2021
|
(Amounts in Millions)
|
2022
|
|
2021
|
|
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
$
|
745.4
|
|
$
|
523.5
|
|
$
|
221.9
|
|
42.4 %
|
Add:
Depreciation
|
|
63.6
|
|
|
59.5
|
|
|
4.1
|
|
6.9 %
|
Other Interest
Expense
|
|
33.5
|
|
|
37.6
|
|
|
(4.1)
|
|
(10.9) %
|
Income
Taxes
|
|
251.8
|
|
|
187.9
|
|
|
63.9
|
|
34.0 %
|
Income from
Discontinued Operations, net of tax
|
|
—
|
|
|
(0.1)
|
|
|
0.1
|
|
nm
|
EBITDA
|
$
|
1,094.3
|
|
$
|
808.4
|
|
$
|
285.9
|
|
35.4 %
|
Add: Debt redemption
costs (2)
|
|
—
|
|
|
17.0
|
|
|
(17.0)
|
|
nm
|
Adjusted
EBITDA
|
$
|
1,094.3
|
|
$
|
825.4
|
|
$
|
268.9
|
|
32.6 %
|
The following table
reconciles the leverage ratio as of June 30, 2022, and
December 31, 2021:
|
|
|
Six
|
|
Six
|
|
Trailing
Twelve
|
|
Twelve
|
|
Months
Ended
|
|
Months
Ended
|
|
Months
Ended
|
|
Months
Ended
|
(Amounts in Millions)
|
December 31,
2021
|
|
June 30,
2022
|
|
June 30,
2022
|
|
December 31,
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
$
669.2
|
|
$
745.4
|
|
$
1,414.6
|
|
$
1,192.7
|
Add:
Depreciation
|
|
62.0
|
|
|
63.6
|
|
|
125.6
|
|
|
121.5
|
Other Interest
Expense
|
|
31.0
|
|
|
33.5
|
|
|
64.5
|
|
|
68.6
|
Income
Taxes
|
|
228.4
|
|
|
251.8
|
|
|
480.2
|
|
|
416.3
|
Income from
Discontinued Operations, net of tax
|
|
(1.2)
|
|
|
—
|
|
|
(1.2)
|
|
|
(1.3)
|
EBITDA
|
$
989.4
|
|
$
1,094.3
|
|
$
2,083.7
|
|
$
1,797.8
|
Add: Loss on
investment for revaluation (1)
|
|
11.4
|
|
|
—
|
|
|
11.4
|
|
|
11.4
|
Add: Debt redemption
costs (2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17.0
|
Adjusted
EBITDA
|
$
1,000.8
|
|
$
1,094.3
|
|
$
2,095.1
|
|
$
1,826.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-Vehicle
Long-Term Debt
|
|
|
|
|
|
|
$
1,486.0
|
|
$
1,474.0
|
Leverage
Ratio
|
|
|
|
|
|
|
|
0.7
x
|
|
|
0.8
x
|
|
(1) Loss on
investment for the revaluation of the Nicole Group
|
(2) Related to
expenses in connection with the redemption of our 5.50% senior
subordinated notes due 2026 in 2021
|
# # # # # # #
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SOURCE Penske Automotive Group, Inc.