Penske Automotive Reports First Quarter 2020 Results

|May 6|magazine58 min read

BLOOMFIELD HILLS, Mich., May 6, 2020 /PRNewswire/ -- Penske Automotive Group, Inc. (NYSE: PAG), a diversified international transportation services company, today announced first quarter 2020 results. For the three months ended March 31, 2020, the company reported income from continuing operations attributable to common shareholders of $51.6 million, or $0.64 per share, compared to $100.1 million, or $1.19 per share in the prior year. Foreign exchange negatively impacted earnings per share by $0.01. Revenue was $5.0 billion compared to $5.6 billion in the same period last year.

In the U.S., through February same-store new and used automotive retail unit sales increased 7.5% and declined 1.1% internationally. In March, the outbreak of COVID-19 began to impact us in all markets. Many of our U.S. and Germany dealerships were impacted by shelter-in-place orders while operations in Italy, Spain and the U.K. were closed. As a result, same-store new and used automotive retail unit sales for the month of March declined 40.2%.

First Quarter 2020 Operational Information

  • Same-store retail revenue decreased 12%
  • Same-store new vehicle gross/unit $3,211, flat
  • Same-store used vehicle gross/unit $1,375, +$48
  • Same-store finance & insurance per unit $1,363, +$87
  • Same-store variable gross profit per unit $3,493, +$86

Liquidity

During the first quarter of 2020, the company generated $212 million in cash flow from operations and free cash flow of $145 million (see non-GAAP reconciliation). As of March 31, 2020, the company's balance sheet was strong with access to approximately $1.3 billion in liquidity, including $432 million of cash, $450 million of availability through revolving credit facilities, and access to $450 million in potentially financeable real estate.

Chairman Roger Penske said, "In response to the COVID-19 crisis, we implemented a hiring freeze, initiated expense reductions, deferred approximately $150 million in capital expenditures, and furloughed approximately 15,000 employees representing 57% of the worldwide workforce. In addition, we implemented significant pay cuts including a temporary 100% reduction in salary for the CEO and President, a 25% reduction in salary for our other executive officers, and the Board of Directors has waived cash compensation through the end of September 2020. We believe the actions taken will help us overcome the challenges of the COVID-19 pandemic and are encouraged by the improving conditions we are starting to see across many of our markets. We will continue to actively monitor the situation and adjust our business model to adapt to the changes presented by COVID-19." Penske continued, "I am encouraged by the many positive actions taken by our team to address the changing marketplace. Our digital initiatives continue to grow our online sales. Further, we have adapted sales processes to facilitate a greater on-line focus, video messaging, curb-side or home delivery, pick-up and drop-off for service customers, and remote F&I through docuPAD®. As a result, we have seen business improve from week to week, as we believe customers have become more comfortable with these new processes.

Used Vehicle SuperCenter Operations

Penske Automotive Group operates sixteen used vehicle supercenters in the U.S. and U.K. During January and February, Used Vehicle SuperCenter same-store units retailed increased 2.1%, which included a 4.1% increase in the U.S. and a 1.7% increase in the U.K. During March, operations at substantially all U.S. and U.K. SuperCenters were closed due to shelter-in-place rules which drove a same-store unit sales decline of 56% in the U.S. and 47% in the U.K. As a result, for the three months ended March 31, 2020, SuperCenter units retailed decreased by 9.6% to 16,312 and revenue decreased by 2.8% to $305.5 million.

Retail Commercial Truck Operations

Penske Automotive Group operates twenty-five medium and heavy-duty truck dealership locations in the U.S. and Canada offering primarily Freightliner and Western Star brands. As an essential operation, our commercial truck business generally remained operational in most locations, although we reduced hours of operations and limited in-person sales where applicable. We continued to experience steady demand for purchases of new and used trucks and service and parts operations during March and April. For the three months ended March 31, 2020, the North American Class 8 retail sales declined 26% compared to our new same-store unit sales decline of 2.2% during the same period. Same-store revenue declined 1.7%. However, in total, including the acquisition of Warner Trucks total units retailed increased 52.4%, and revenue increased 47.9% to $491.4 million.

Penske Transportation Solutions

Penske Transportation Solutions ("PTS"), is a leading provider of full-service truck leasing, truck rental, contract maintenance, and logistics services. The company has a 28.9% ownership interest in PTS and accounts for its ownership interest using the equity method of accounting. As an integral part of the North American supply chain, PTS has been generally classified as essential by governmental authorities. This has allowed PTS to remain operating in much of its business, providing crucial supply chain and transportation services to its customers. While its full-service leasing and contract maintenance businesses remained consistent, commercial rental utilization has slowed. PTS experienced mixed results in the logistics services business as increased volume in the grocery sector was offset by plant closings in automotive and manufacturing. In response, PTS implemented, among other items, approximately 7,000 layoffs, a 30% reduction in executive salaries, and reduced associate work schedules. For the three months ended March 31, 2020, the company recorded $13.6 million in earnings compared to $25.8 million for the same period last year. First quarter 2020 earnings were impacted by the current business conditions noted above, coupled with lower gain on sale of revenue earning equipment. The three months ended March 31, 2019 also included a $3.3 million gain related to the favorable outcome of a litigation matter.

Share Repurchases

During the three months ended March 31, 2020, the company repurchased 890,195 shares, for $29.4 million, or an average of $33.06 per share. As of March 31, 2020, the company had remaining share repurchase authorization of approximately $170.6 million.

Conference Call

Penske Automotive Group will host a conference call discussing financial results relating to the first quarter of 2020 on Wednesday, May 6, 2020, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (877) 692-8955 [International, please dial (234) 720-6979] with an Access Code of 1862696. The call will also be simultaneously broadcast over the Internet through the Investor's section of the Penske Automotive Group website. Additionally, an investor presentation relating to the first quarter 2020 financial results has been posted to the company's website. To access the presentation or to listen to the company's webcast, please refer to www.penskeautomotive.com.

About Penske Automotive

Penske Automotive Group, Inc., (NYSE:PAG) headquartered in Bloomfield Hills, Michigan, is an international transportation services company that operates automotive and commercial truck dealerships principally in the United States, the United Kingdom, 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 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 earnings before interest, taxes, depreciation and amortization ("EBITDA") and "Free Cash Flow." 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, liquidity and assessment of business conditions in light of the COVID-19 pandemic. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others: the duration, severity and resolution of the COVID-19 pandemic, economic conditions generally, conditions in the credit markets, changes in interest rates and foreign currency exchange rates, changes in tariff rates, adverse impacts related to the outcome of the United Kingdom's departure from the European Union, adverse conditions affecting a particular manufacturer, including the adverse impact to the vehicle and parts supply chain due to limited vehicle availability due to the COVID-19 pandemic, WLTP and RDE, 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 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, 2019 and its other filings with the Securities and Exchange Commission ("SEC"). This press release speaks only as of its date, and Penske Automotive Group disclaims any duty to update the information herein.

Find a vehicle: http://www.penskecars.com
Engage Penske Automotive: http://www.penskesocial.com
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Inquiries should contact:



J.D. Carlson

Anthony R. Pordon

Executive Vice President and

Executive Vice President Investor Relations

Chief Financial Officer

and Corporate Development

Penske Automotive Group, Inc.

Penske Automotive Group, Inc.

248-648-2810

248-648-2540

[email protected]

[email protected]

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Statements of Income

(Amounts In Millions, Except Per Share Data)

(Unaudited)















Three Months Ended





March 31,





2020


2019


Change



Revenue


$

5,009.1


$

5,564.4


(10.0)

%



Cost of Sales



4,232.4



4,712.9


(10.2)

%



Gross Profit


$

776.7


$

851.5


(8.8)

%



SG&A Expenses



641.8



666.4


(3.7)

%



Depreciation



28.5



26.4


8.0

%



Operating Income


$

106.4


$

158.7


(33.0)

%



Floor Plan Interest Expense



(17.7)



(21.8)


(18.8)

%



Other Interest Expense



(31.7)



(29.9)


6.0

%



Equity in Earnings of Affiliates



14.5



26.8


(45.9)

%



Income from Continuing Operations Before Income Taxes


$

71.5


$

133.8


(46.6)

%



Income Taxes



(20.1)



(34.7)


(42.1)

%



Income from Continuing Operations


$

51.4


$

99.1


(48.1)

%



Income from Discontinued Operations, net of tax



0.1



0.1


nm




Net Income


$

51.5


$

99.2


(48.1)

%



Less: Loss Attributable to Non-Controlling Interests



(0.2)



(1.0)


nm




Net Income Attributable to Common Shareholders


$

51.7


$

100.2


(48.4)

%















Amounts Attributable to Common Shareholders:




































Reported Income from Continuing Operations


$

51.4


$

99.1


(48.1)

%



Less: Loss Attributable to Non-Controlling Interests



(0.2)



(1.0)


nm




Income from Continuing Operations, net of tax


$

51.6


$

100.1


(48.5)

%



Income from Discontinued Operations, net of tax



0.1



0.1


nm




Net Income Attributable to Common Shareholders


$

51.7


$

100.2


(48.4)

%



Income from Continuing Operations Per Share


$

0.64


$

1.19


(46.2)

%



Income Per Share


$

0.64


$

1.19


(46.2)

%



Weighted Average Shares Outstanding



81.1



84.4


(3.9)

%















nm – not meaningful












 

 

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Balance Sheets

(Amounts In Millions)

(Unaudited)










March 31,


December 31,



2020


2019

Assets:







Cash and Cash Equivalents


$

431.9


$

28.1

Accounts Receivable, Net



616.3



960.3

Inventories



4,262.7



4,260.7

Other Current Assets



85.2



85.0

Total Current Assets



5,396.1



5,334.1

Property and Equipment, Net



2,297.9



2,366.4

Operating Lease Right-of-Use Assets



2,292.1



2,360.5

Intangibles



2,409.8



2,463.2

Other Long-Term Assets



1,420.9



1,418.5

Total Assets


$

13,816.8


$

13,942.7








Liabilities and Equity:







Floor Plan Notes Payable


$

2,283.4


$

2,412.5

Floor Plan Notes Payable – Non-Trade



1,605.7



1,594.0

Accounts Payable



589.8



638.8

Accrued Expenses and Other Current Liabilities



645.3



701.9

Current Portion Long-Term Debt



104.6



103.3

Liabilities Held for Sale



0.5



0.5

Total Current Liabilities



5,229.3



5,451.0

Long-Term Debt



2,516.1



2,257.0

Long-Term Operating Lease Liabilities



2,234.1



2,301.2

Other Long-Term Liabilities



1,129.8



1,121.9

Total Liabilities



11,109.3



11,131.1

Equity



2,707.5



2,811.6

Total Liabilities and Equity


$

13,816.8


$

13,942.7








Supplemental Balance Sheet Information







New vehicle days' supply



101



71

Used vehicle days' supply



67



52


 

 

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Statements of Cash Flow

Amounts in Millions

(Unaudited)











Three Months Ended




March 31,




2020


2019


Operating Activities:








Net income


$

51.5


$

99.2


Adjustments to reconcile net income to net cash from continuing operating activities:








Depreciation



28.5



26.4


Earnings of equity method investments



(14.5)



(26.8)


(Income) loss from discontinued operations, net of tax



(0.1)



(0.1)


Deferred income taxes



28.4



11.8


Changes in operating assets and liabilities:








Accounts receivable



343.9



(104.9)


Inventories



(9.3)



(90.5)


Floor plan notes payable



(126.8)



83.9


Accounts payable and accrued expenses



(84.9)



134.5


Other



(4.8)



(42.1)


Net cash provided by continuing operating activities



211.9



91.4


Investing Activities:








Purchase of equipment and improvements



(25.7)



(63.1)


Proceeds from sale of dealerships



10.3



7.2


Proceeds from sale-leaseback transactions





7.3


Acquisitions net, including repayment of sellers' floor plan notes payable of $0 and $0, respectively





(1.1)


Other



(0.7)



(0.2)


Net cash used in continuing investing activities



(16.1)



(49.9)


Financing Activities:








Proceeds from borrowings under U.S. credit agreement revolving credit line



515.0



406.0


Repayments under U.S. credit agreement revolving credit line



(210.0)



(381.0)


Net repayments of other long-term debt



(22.1)



(35.6)


Net borrowings of floor plan notes payable — non-trade



11.7



60.1


Cash paid for seller financing



(21.1)




Repurchases of common stock



(29.4)



(54.3)


Dividends



(34.2)



(32.2)


Other





(0.1)


Net cash provided by (used in) continuing financing activities



209.9



(37.1)


Discontinued operations:








Net cash provided by (used in) discontinued operating activities





(0.1)


Net cash provided by discontinued investing activities






Net cash provided by discontinued financing activities






Net cash provided by (used in) discontinued operations



0.1



(0.1)


Effect of exchange rate changes on cash and cash equivalents



(2.0)



(0.2)


Net change in cash and cash equivalents



403.8



4.1


Cash and cash equivalents, beginning of period



28.1



39.4


Cash and cash equivalents, end of period


$

431.9


$

43.5


Supplemental disclosures of cash flow information:








Cash paid (received) for:








Interest


$

36.3


$

35.8


Income taxes



(3.3)



8.8


 

 

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Operations

Selected Data

(Unaudited)











Three Months Ended




March 31,




2020


2019


Geographic Revenue Mix:








North America



58.8

%


54.9

%

U.K.



33.2

%


36.7

%

Other International



8.0

%


8.4

%

Total



100.0

%


100.0

%









Revenue: (Amounts in Millions)








Retail Automotive


$

4,416.6


$

5,091.2


Retail Commercial Trucks



491.4



332.3


Commercial Vehicles Australia/Power Systems and Other



101.1



140.9


Total


$

5,009.1


$

5,564.4










Gross Profit: (Amounts in Millions)








Retail Automotive


$

678.1


$

761.5


Retail Commercial Trucks



68.8



54.4


Commercial Vehicles Australia/Power Systems and Other



29.8



35.6


Total


$

776.7


$

851.5










Gross Margin:








Retail Automotive



15.4

%


15.0

%

Retail Commercial Trucks



14.0

%


16.4

%

Commercial Vehicles Australia/Power Systems and Other



29.5

%


25.3

%

Total



15.5

%


15.3

%











Three Months Ended




March 31,












2020


2019


Operating Items as a Percentage of Revenue:








Gross Profit



15.5

%


15.3

%

Selling, General and Administrative Expenses



12.8

%


12.0

%

Operating Income



2.1

%


2.9

%

Income from Continuing Operations Before Income Taxes



1.4

%


2.4

%









Operating Items as a Percentage of Total Gross Profit:








Selling, General and Administrative Expenses



82.6

%


78.3

%

Operating Income



13.7

%


18.6

%











Three Months Ended




March 31,










(Amounts in Millions)


2020


2019










EBITDA*


$

131.7


$

190.1


Floorplan Credits


$

8.6


$

8.5


Rent Expense


$

57.9


$

57.2


Capital Expenditures


$

25.7


$

63.1


Stock Repurchases


$

29.4


$

54.3


_________________________

* See the following Non-GAAP reconciliation table.

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

Selected Data – Revenue and Gross Profit Mix

(Unaudited)









Three Months Ended




March 31,




2020


2019


Retail Automotive Revenue Mix:






Premium:






BMW / MINI


22

%

22

%

Audi


13

%

12

%

Mercedes-Benz


11

%

10

%

Land Rover / Jaguar


9

%

10

%

Porsche


6

%

5

%

Ferrari / Maserati


2

%

3

%

Lexus


3

%

3

%

Acura


1

%

1

%

Bentley


1

%

1

%

Others


2

%

3

%

Total Premium


70

%

70

%

Volume Non-U.S.:






Toyota


10

%

9

%

Honda


6

%

6

%

Volkswagen


3

%

4

%

Nissan


1

%

1

%

Others


2

%

2

%

Total Volume Non-U.S.


22

%

22

%

U.S.:






General Motors / Chrysler / Ford


1

%

2

%

Stand-Alone Used


7

%

6

%

Total


100

%

100

%







Retail Automotive Geographic Revenue Mix:






U.S.


56

%

54

%

U.K.


38

%

40

%

Other International


6

%

6

%

Total


100

%

100

%







Retail Automotive Geographic Gross Profit Mix:






U.S.


61

%

58

%

U.K.


33

%

37

%

Other International


6

%

5

%

Total


100

%

100

%

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

Selected Data

(Unaudited)














Three Months Ended




March 31,




2020


2019


Change


Retail Automotive Units:











New Retail



43,187



54,370


(20.6)

%


Used Retail



63,050



72,744


(13.3)

%


Total



106,237



127,114


(16.4)

%













Retail Automotive Revenue: (Amounts in Millions)











New Vehicles


$

1,864.5


$

2,231.2


(16.4)

%


Used Vehicles



1,619.6



1,852.0


(12.5)

%


Finance and Insurance, Net



144.4



160.0


(9.8)

%


Service and Parts



513.3



559.8


(8.3)

%


Fleet and Wholesale



274.8



288.2


(4.6)

%


Total Revenue


$

4,416.6


$

5,091.2


(13.3)

%













Retail Automotive Gross Profit: (Amounts in Millions)











New Vehicles


$

138.6


$

172.7


(19.7)

%


Used Vehicles



85.9



92.9


(7.5)

%


Finance and Insurance, Net



144.4



160.0


(9.8)

%


Service and Parts



303.7



331.4


(8.4)

%


Fleet and Wholesale



5.5



4.5


22.2

%


Total Gross Profit


$

678.1


$

761.5


(11.0)

%













Retail Automotive Revenue Per Vehicle Retailed:











New Vehicles


$

43,172


$

41,037


5.2

%


Used Vehicles



25,688



25,459


0.9

%













Retail Automotive Gross Profit Per Vehicle Retailed:











New Vehicles


$

3,210


$

3,176


1.1

%


Used Vehicles



1,362



1,278


6.6

%


Finance and Insurance



1,359



1,259


7.9

%













Retail Automotive Gross Margin:











New Vehicles



7.4

%


7.7

%

-30

bps

%

Used Vehicles



5.3

%


5.0

%

+30

bps

%

Service and Parts



59.2

%


59.2

%

---

bps

%

Fleet and Wholesale



2.0

%


1.6

%

+40

bps

%

Total Gross Margin



15.4

%


15.0

%

+40

bps

%












Retail Automotive Revenue Mix Percentages:











New Vehicles



42.2

%


43.8

%

-160

bps

%

Used Vehicles



36.7

%


36.4

%

+30

bps

%

Finance and Insurance, Net



3.3

%


3.1

%

+20

bps

%

Service and Parts



11.6

%


11.0

%

+60

bps

%

Fleet and Wholesale



6.2

%


5.7

%

+50

bps

%

Total



100.0

%


100.0

%















Retail Automotive Gross Profit Mix Percentages:











New Vehicles



20.4

%


22.7

%

-230

bps

%

Used Vehicles



12.7

%


12.2

%

+50

bps

%

Finance and Insurance, Net



21.3

%


21.0

%

+30

bps

%

Service and Parts



44.8

%


43.5

%

+130

bps

%

Fleet and Wholesale



0.8

%


0.6

%

+20

bps

%

Total



100.0

%


100.0

%




 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations Same-Store

Selected Data

(Unaudited)













Three Months Ended



March 31,



2020


2019


Change

Retail Automotive Same-Store Units:










New Retail



43,151



52,327


(17.5)

%

Used Retail



61,719



70,364


(12.3)

%

Total



104,870



122,691


(14.5)

%











Retail Automotive Same-Store Revenue: (Amounts in Millions)










New Vehicles


$

1,863.5


$

2,174.4


(14.3)

%

Used Vehicles



1,597.6



1,800.7


(11.3)

%

Finance and Insurance, Net



142.9



156.6


(8.7)

%

Service and Parts



512.6



546.3


(6.2)

%

Fleet and Wholesale



267.2



279.2


(4.3)

%

Total Revenue


$

4,383.8


$

4,957.2


(11.6)

%











Retail Automotive Same-Store Gross Profit: (Amounts in Millions)










New Vehicles


$

138.6


$

168.0


(17.5)

%

Used Vehicles



84.8



93.4


(9.2)

%

Finance and Insurance, Net



142.9



156.6


(8.7)

%

Service and Parts



303.1



323.5


(6.3)

%

Fleet and Wholesale



5.4



4.5


20.0

%

Total Gross Profit


$

674.8


$

746.0


(9.5)

%











Retail Automotive Same-Store Revenue Per Vehicle Retailed:










New Vehicles


$

43,186


$

41,554


3.9

%

Used Vehicles



25,885



25,591


1.1

%











Retail Automotive Same-Store Gross Profit Per Vehicle Retailed:










New Vehicles


$

3,211


$

3,210


0.0

%

Used Vehicles



1,375



1,327


3.6

%

Finance and Insurance



1,363



1,276


6.8

%











Retail Automotive Same-Store Gross Margin:










New Vehicles



7.4

%


7.7

%

-30

bps

Used Vehicles



5.3

%


5.2

%

+10

bps

Service and Parts



59.1

%


59.2

%

-10

bps

Fleet and Wholesale



2.0

%


1.6

%

+40

bps

Total Gross Margin



15.4

%


15.0

%

+40

bps











Retail Automotive Revenue Mix Percentages:










New Vehicles



42.5

%


43.9

%

-140

bps

Used Vehicles



36.4

%


36.3

%

+10

bps

Finance and Insurance, Net



3.3

%


3.2

%

+10

bps

Service and Parts



11.7

%


11.0

%

+70

bps

Fleet and Wholesale



6.1

%


5.6

%

+50

bps

Total



100.0

%


100.0

%













Retail Automotive Gross Profit Mix Percentages:










New Vehicles



20.5

%


22.5

%

-200

bps

Used Vehicles



12.6

%


12.5

%

+10

bps

Finance and Insurance, Net



21.2

%


21.0

%

+20

bps

Service and Parts



44.9

%


43.4

%

+150

bps

Fleet and Wholesale



0.8

%


0.6

%

+20

bps

Total



100.0

%


100.0

%



 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Commercial Truck Operations

Selected Data

(Unaudited)













Three Months Ended



March 31,



2020


2019


Change

Retail Commercial Truck Units:










New Retail



2,811



1,887


49.0

%

Used Retail



698



416


67.8

%

Total



3,509



2,303


52.4

%











Retail Commercial Truck Revenue: (Amounts in Millions)










New Vehicles


$

318.2


$

207.4


53.4

%

Used Vehicles



34.6



24.1


43.6

%

Finance and Insurance, Net



3.2



3.0


6.7

%

Service and Parts



124.3



91.5


35.8

%

Wholesale and Other



11.1



6.3


76.2

%

Total Revenue


$

491.4


$

332.3


47.9

%











Retail Commercial Truck Gross Profit: (Amounts in Millions)










New Vehicles


$

12.5


$

10.2


22.5

%

Used Vehicles



(2.5)



2.7


(192.6)

%

Finance and Insurance, Net



3.2



3.0


6.7

%

Service and Parts



53.4



36.1


47.9

%

Wholesale and Other



2.2



2.4


(8.3)

%

Total Gross Profit


$

68.8


$

54.4


26.5

%











Retail Commercial Truck Revenue Per Vehicle Retailed:










New Vehicles


$

113,214


$

109,887


3.0

%

Used Vehicles



49,619



58,032


(14.5)

%











Retail Commercial Truck Gross Profit Per Vehicle Retailed:










New Vehicles


$

4,455


$

5,391


(17.4)

%

Used Vehicles



(3,511)



6,557


(153.5)

%

Finance and Insurance



907



1,309


(30.7)

%











Retail Commercial Truck Gross Margin:










New Vehicles



3.9

%


4.9

%

-100

bps

Used Vehicles



(7.2)

%


11.2

%

-1,840

bps

Service and Parts



43.0

%


39.5

%

+350

bps

Total Gross Margin



14.0

%


16.4

%

-240

bps











Retail Commercial Truck Revenue Mix Percentages:










New Vehicles



64.8

%


62.4

%

+240

bps

Used Vehicles



7.0

%


7.3

%

-30

bps

Finance and Insurance, Net



0.7

%


0.9

%

-20

bps

Service and Parts



25.3

%


27.5

%

-220

bps

Wholesale and Other



2.2

%


1.9

%

+30

bps

Total



100.0

%


100.0

%













Retail Commercial Truck Gross Profit Mix Percentages:










New Vehicles



18.2

%


18.8

%

-60

bps

Used Vehicles



(3.6)

%


5.0

%

-860

bps

Finance and Insurance, Net



4.7

%


5.5

%

-80

bps

Service and Parts



77.6

%


66.4

%

+1,120

bps

Wholesale and Other



3.1

%


4.3

%

-120

bps

Total



100.0

%


100.0

%



 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Commercial Truck Operations Same-Store

Selected Data

(Unaudited)













Three Months Ended



March 31,



2020


2019


Change

Retail Commercial Truck Same-Store Units:










New Retail



1,845



1,887


(2.2)

%

Used Retail



512



416


23.1

%

Total



2,357



2,303


2.3

%











Retail Commercial Truck Same-Store Revenue: (Amounts in Millions)










New Vehicles


$

206.0


$

207.4


(0.7)

%

Used Vehicles



25.1



24.1


4.1

%

Finance and Insurance, Net



2.4



3.0


(20.0)

%

Service and Parts



86.1



91.2


(5.6)

%

Wholesale and Other



6.5



6.2


4.8

%

Total Revenue


$

326.1


$

331.9


(1.7)

%











Retail Commercial Truck Same-Store Gross Profit: (Amounts in Millions)










New Vehicles


$

7.6


$

10.2


(25.5)

%

Used Vehicles



(0.1)



2.7


(103.7)

%

Finance and Insurance, Net



2.4



3.0


(20.0)

%

Service and Parts



34.6



36.0


(3.9)

%

Wholesale and Other



3.7



2.3


60.9

%

Total Gross Profit


$

48.2


$

54.2


(11.1)

%











Retail Commercial Truck Same-Store Revenue Per Vehicle Retailed:










New Vehicles


$

111,660


$

109,887


1.6

%

Used Vehicles



49,016



58,032


(15.5)

%











Retail Commercial Truck Same-Store Gross Profit Per Vehicle Retailed:










New Vehicles


$

4,116


$

5,391


(23.7)

%

Used Vehicles



(217)



6,557


(103.3)

%

Finance and Insurance



1,000



1,309


(23.6)

%











Retail Commercial Truck Same-Store Gross Margin:










New Vehicles



3.7

%


4.9

%

-120

bps

Used Vehicles



(0.4)

%


11.2

%

-1,160

bps

Service and Parts



40.2

%


39.5

%

+70

bps

Total Gross Margin



14.8

%


16.3

%

-150

bps











Retail Commercial Truck Revenue Mix Percentages:










New Vehicles



63.2

%


62.5

%

+70

bps

Used Vehicles



7.7

%


7.3

%

+40

bps

Finance and Insurance, Net



0.7

%


0.9

%

-20

bps

Service and Parts



26.4

%


27.5

%

-110

bps

Wholesale and Other



2.0

%


1.8

%

+20

bps

Total



100.0

%


100.0

%













Retail Commercial Truck Gross Profit Mix Percentages:










New Vehicles



15.8

%


18.8

%

-300

bps

Used Vehicles



(0.2)

%


5.0

%

-520

bps

Finance and Insurance, Net



5.0

%


5.5

%

-50

bps

Service and Parts



71.8

%


66.5

%

+530

bps

Wholesale and Other



7.6

%


4.2

%

+340

bps

Total



100.0

%


100.0

%



 

 

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 months ended March 31, 2020 and 2019:
















Three Months Ended









March 31,


2020 vs. 2019

(Amounts in Millions)


2020


2019


Change


% Change














Net Income


$

51.5


$

99.2


$

(47.7)


(48.1)

%

Add: Depreciation



28.5



26.4



2.1


8.0

%

Other Interest Expense



31.7



29.9



1.8


6.0

%

Income Taxes



20.1



34.7



(14.6)


(42.1)

%

Income from Discontinued Operations, net of tax



(0.1)



(0.1)




nm


EBITDA


$

131.7


$

190.1


$

(58.4)


(30.7)

%



nm – not meaningful



The following table reconciles reported cash flow from operations to free cash flow for the three months ended March 31, 2020:







Three Months Ended




March 31,


(Amounts in Millions)


2020







Net cash provided by continuing operating activities


$

211.9


Add: Net borrowings of floor plan notes payable — non-trade



11.7


Add: Proceeds from sale of dealerships



10.3


Add: Proceeds from sale-leaseback transactions




Less: Purchase of equipment and improvements



(25.7)


Less: Repurchases of common stock



(29.4)


Less: Dividends



(34.2)


Free Cash Flow


$

144.6


 

 

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SOURCE Penske Automotive Group, Inc.