Penske Automotive Group, Inc 8-K, filed Jul 28, 2021
Penske Automotive Group, Inc. (PAG)
About this 8-K
Penske Automotive Group, Inc filed this 8-K on July 28, 2021.
Items reported
- Item 2.02: Financial results
- Item 7.01: Regulation FD disclosure
- Item 8.01: Other events
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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Registrant’s telephone number, including area code: | | |||
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Securities registered pursuant to Section 12(b) of the Act:
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On July 28, 2021, we issued a press release announcing our second quarter 2021 financial results and other information. A copy of the press release is furnished as Exhibit 99.1.
Item 7.01 Regulation FD Disclosure.
The following information is furnished pursuant to Item 7.01 “Regulation FD Disclosure.”
On July 28, 2021, we issued a press release announcing our second quarter 2021 financial results and other information. A copy of the press release is furnished as Exhibit 99.1.
Item 8.01 Other Events.
Investors and others should note that we announce material financial information using our company website (www.penskeautomotive.com), our investor relations website (investors.penskeautomotive.com), SEC filings, press releases, public conference calls, and webcasts. Information about Penske Automotive, its business, and its results of operations may also be announced by posts on the following social media channels:
| ● | Penske Automotive’s Twitter feed (www.twitter.com/penskecarscorp) |
| ● | Penske Automotive’s Facebook page (www.facebook.com/penskecars) |
| ● | Penske Automotive’s Social website (www.penskesocial.com) |
The information that we post on these social media channels could be deemed to be material information. As a result, we encourage investors, the media, and others interested in Penske Automotive to review the information that we post on these social media channels. These channels may be updated from time to time on Penske Automotive’s investor relations website.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit Index
Exhibit No. |
| Description | |
99.1 |
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104 | | Cover Page Interactive Data File (formatted as inline XBRL). | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| Penske Automotive Group, Inc. | |
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July 28, 2021 | | By: | /s/ Shane M. Spradlin |
| | | Name: Shane M. Spradlin |
| | | Title: Executive Vice President |
  | Press Release Penske Automotive Group, Inc. 2555 Telegraph Road Bloomfield Hills, MI 48302-0954 | |
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FOR IMMEDIATE RELEASE | | |
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PENSKE AUTOMOTIVE REPORTS ALL TIME RECORD SECOND QUARTER RESULTS
Earnings Before Taxes, Net Income, and Earnings Per Share Increase By 650%
SG&A as a Percentage of Gross Profit Improves 1,860 Basis Points
Same-Store Retail Automotive Revenue Increases 97.5%
Share Repurchase Authorization Increases to $250 Million
BLOOMFIELD HILLS, MI, July 28, 2021 – 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 second quarter and six months 2021 results. For the three months ended June 30, 2021, the company reported a 652.9% increase in income from continuing operations attributable to common shareholders to $338.8 million and a 650.0% increase in related earnings per share to $4.20. This compares to income from continuing operations attributable to common shareholders of $45.0 million, or $0.56 per share, in the prior year. Second quarter income from continuing operations and related earnings per share include charges of $21.4 million, consisting of $12.6 million of debt redemption costs ($0.16 per share) and $8.8 million of charges relating to the increase in U.K. corporate taxes in 2023 ($0.11 per share). Excluding these items, adjusted income from continuing operations increased 700.4% to $360.2 million, and related earnings per share increased 698.2% to $4.47. Foreign exchange positively impacted earnings per share by $0.11.
Second Quarter 2021 Operational Highlights versus Second Quarter 2020
| ● | Same-Store New and Used Retail Automotive Unit Sales - increased 81.7% |
| o | New +91.5%; Used +74.7% |
| ● | Total Revenue - increased 91.4% to $7.0 billion from $3.7 billion |
| ● | Same-Store Retail Automotive Revenue - increased 97.5% |
| o | New Vehicle +104.9%; Used Vehicle +99.4%; Finance & Insurance +119.1%; Service & Parts +59.9% |
| ● | Same-Store Retail Automotive Gross Profit - increased 123.9% |
| ● | Retail Automotive Variable Gross Profit Per Unit - increased 45.8% to $5,155 |
| ● | Same-Store Retail Automotive Service & Parts Gross Profit - increased 68.7%, including a 320 bps increase in gross margin |
| ● | Retail Commercial Truck Dealership Earnings Before Taxes – increased 172.1% |
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Second Quarter 2021 Operational Highlights versus Second Quarter 2019
| ● | Same-Store New and Used Retail Automotive Unit Sales - increased 6.1% |
| o | New +9.7%; Used +3.3% |
| ● | Total Revenue - increased 21.3% to $7.0 billion from $5.8 billion |
| ● | Same-Store Retail Automotive Revenue - increased 23.4% |
| o | New Vehicle +25.7%; Used Vehicle +26.3%; Finance & Insurance +29.2%; Service & Parts +2.3% |
| ● | Same-Store Retail Automotive Gross Profit - increased 35.0% |
| ● | Retail Automotive Variable Gross Profit Per Unit - increased 48.4% to $5,155 |
| ● | Same-Store Retail Automotive Service & Parts Gross Profit - increased 5.5%, including a 190 bps increase in gross margin |
| ● | Retail Commercial Truck Dealership Earnings Before Taxes – increased 109.8% |
| ● | Income from Continuing Operations - increased 187.9% to $338.8 million when compared to $117.7 million. Related earnings per share increased 195.8% to $4.20 when compared to $1.42 |
Commenting on the company’s results, Chair and CEO Roger Penske said, “Our business produced an all-time record second quarter driven by strength across all areas of our business. Strong volume and vehicle margins, improving service and parts operations, a growing Class 8 commercial truck market, record performance at Penske Transportation Solutions, and continuing cost controls all contributed to the record performance. I am particularly pleased with the continued expense discipline driving a 1,860-basis point improvement in selling, general, and administrative expense as a percent of gross profit.” Penske continued, “Despite the ongoing disruption to new vehicle supply, our performance in the quarter demonstrates the strength of the auto and commercial truck retail model and the benefit from our diversification.”
For the six months ended June 30, 2021, the company reported a 439.6% increase in income from continuing operations attributable to common shareholders to $521.3 million and a 438.3% increase in related earnings per share to $6.46. This compares to income from continuing operations attributable to common shareholders of $96.6 million, or $1.20 per share, in the prior year. Excluding the charges noted above, adjusted income from continuing operations increased 461.8% to $542.7 million, and related earnings per share increased 460.8% to $6.73. Foreign exchange positively impacted earnings per share by $0.16. Total revenue increased 47.4% to $12.8 billion from $8.7 billion in the same period last year.
CarShop Used Vehicle SuperCenters
Penske Automotive Group operates nineteen CarShop Used Vehicle SuperCenters in the U.S. and U.K. The CarShop SuperCenters experienced significant improvement in the second quarter principally due to the reopening of the U.K.-based showrooms from COVID-19 restrictions beginning in April. For the three months ended June 30, 2021, retail unit sales increased by 184.0% to 18,742 while revenue increased by 207.9% to $408.2 million. For the six months ended June 30, 2021, retail unit sales increased by 31.5% to 30,137 while revenue increased by 48.6% to $650.8 million.
Retail Commercial Truck Dealerships
For the three months ended June 30, 2021, earnings before taxes increased 172.1% to $39.7 million compared to $14.6 million in the same period last year, return on sales was 6.3%, and fixed cost absorption was 133.0%. For the six months ended June 30, 2021, earnings before taxes increased 137.4% to $67.2 million compared to $28.3 million in the same period last year and return on sales was 6.3%. The increase in earnings before taxes was principally driven by a 34.3% same-store increase in
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new trucks sales and an increase in new and used truck gross margin, coupled with an 18.0% increase in same-store service and parts gross profit.
On April 13, 2021, the company announced that it had completed its acquisition of Kansas City Freightliner (“KCFL”), which is expected to add approximately $450 million in annualized revenue. PTG now operates 35 locations throughout the U.S. and Canada which provide services such as new and used truck sales, parts and service, and collision repair.
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, 2021, the company recorded $102.5 million and $156.2 million in earnings compared to $29.9 million and $43.5 million for the same period last year. The increase was principally driven by a strong North American Class 8 truck market and increased demand for the company’s full-service leasing, rental, and logistics services, coupled with improved efficiency and a reduction in operating expenses which drove a 15.4% return on sales for PTS during the second quarter 2021.
Corporate Development and Liquidity
As mentioned above, we acquired “KCFL” in April 2021, which we expect to add $450 million in annualized revenue. In addition, in June 2021, we acquired Mercedes-Benz of South Charlotte, which is expected to add $150 million in annualized revenues. We are also constructing an Audi dealership in Southern California and a Honda dealership in Texas, both of which are expected to open either in late 2021 or early in 2022 and collectively generate approximately $100 million in annualized revenue.
During the second quarter, we opened one CarShop Used Vehicle SuperCenter in the U.S. and one CarShop Used Vehicle SuperCenter in the U.K. We also expect to open an additional four locations by the end of 2021. We are targeting 40 locations, 150,000 in unit sales, and $100 million of earnings before taxes in the CarShop Used Vehicle SuperCenter operations by the end of 2023.
During the second quarter of 2021, we issued $500 million in aggregate principal amount of 3.75% senior subordinated notes due 2029, the proceeds of which were used to redeem our $500 million in aggregate principal amount of 5.50% senior subordinated notes due 2026 on June 24, 2021. The redemption resulted in $12.6 million in debt redemption costs noted above.
As of June 30, 2021, the company had available liquidity under its various credit agreements of approximately $1.1 billion.
Dividend and Share Repurchases
On July 21, 2021, we announced an increase in the quarterly dividend to $0.45 per share payable on September 1, 2021, to shareholders of record as of August 10, 2021.
During the six months ended June 30, 2021, we repurchased 495,307 shares of our outstanding common stock for $40.9 million, or an average of $82.63 per share. At the end of the second quarter, we had $142.5 million available under our securities repurchase program approved by our Board of Directors. In July 2021, our Board of Directors increased the share repurchase authority to $250 million.
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Conference Call
Penske Automotive Group will host a conference call discussing financial results relating to the second quarter of 2021 on Wednesday, July 28, 2021, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (866) 996-5381 [International, please dial (602) 585-9891] using access code 9670988. The call will also be simultaneously broadcast over the Internet through the Investors section of the Penske Automotive Group website. Additionally, an investor presentation relating to the second quarter 2021 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, and Italy and is the largest retailer 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 330,000 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”), and adjusted earnings before interest, taxes, depreciation, and amortization. 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. 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, government mandated restrictions on our business in light of COVID-19 or otherwise, economic conditions generally, conditions in the credit markets, changes in interest rates and foreign currency exchange rates, changes in tariff rates, new rules in place after the recent Brexit accord between the European Union and the U.K. could slow parts originating in the U.K. or Europe for distribution to our dealerships, 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, the shortage of automotive semiconductor chips or other components, 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
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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, 2020, 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 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. |
248-648-2812 | 248-648-2540 |
shulgrave@penskeautomotive.com | tpordon@penskeautomotive.com |
# # #
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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, | ||||||||||||||
| | 2021 | | 2020 | | Change | | | 2021 | | 2020 | | Change | ||||||
Revenue | | $ | 6,987.5 | | $ | 3,651.1 |
| 91.4 | % | | | $ | 12,761.3 | | $ | 8,660.2 |
| 47.4 | % |
Cost of Sales | |
| 5,804.8 | |
| 3,098.2 |
| 87.4 | % | | |
| 10,665.4 | |
| 7,330.6 |
| 45.5 | % |
Gross Profit | | $ | 1,182.7 | | $ | 552.9 |
| 113.9 | % | | | $ | 2,095.9 | | $ | 1,329.6 |
| 57.6 | % |
SG&A Expenses | |
| 749.8 | |
| 453.6 |
| 65.3 | % | | |
| 1,414.1 | |
| 1,095.4 |
| 29.1 | % |
Depreciation | |
| 30.2 | |
| 27.9 |
| 8.2 | % | | |
| 59.5 | |
| 56.4 |
| 5.5 | % |
Operating Income | | $ | 402.7 | | $ | 71.4 |
| 464.0 | % | | | $ | 622.3 | | $ | 177.8 |
| 250.0 | % |
Floor Plan Interest Expense | |
| (7.9) | |
| (11.7) |
| (32.5) | % | | |
| (17.4) | |
| (29.4) |
| (40.8) | % |
Other Interest Expense | |
| (19.7) | |
| (28.4) |
| (30.6) | % | | |
| (37.6) | |
| (60.1) |
| (37.4) | % |
Debt Redemption Costs | | | (17.0) | | | — | | nm | % | | | | (17.0) | | | — | | nm | % |
Equity in Earnings of Affiliates | |
| 105.6 | |
| 29.9 |
| 253.2 | % | | |
| 161.0 | |
| 44.4 |
| 262.6 | % |
Income from Continuing Operations Before Income Taxes | | $ | 463.7 | | $ | 61.2 |
| 657.7 | % | | | $ | 711.3 | | $ | 132.7 |
| 436.0 | % |
Income Taxes | |
| (123.4) | |
| (16.5) |
| 647.9 | % | | |
| (187.9) | |
| (36.6) |
| 413.4 | % |
Income from Continuing Operations | | $ | 340.3 | | $ | 44.7 |
| 661.3 | % | | | $ | 523.4 | | $ | 96.1 |
| 444.6 | % |
Income from Discontinued Operations, net of tax | |
| 0.1 | |
| 0.1 |
| nm | | | |
| 0.1 | |
| 0.2 |
| nm | |
Net Income | | $ | 340.4 | | $ | 44.8 |
| 659.8 | % | | | $ | 523.5 | | $ | 96.3 |
| 443.6 | % |
Less: Income (Loss) Attributable to Non-Controlling Interests | |
| 1.5 | |
| (0.3) |
| nm | | | |
| 2.1 | |
| (0.5) |
| nm | |
Net Income Attributable to Common Shareholders | | $ | 338.9 | | $ | 45.1 |
| 651.4 | % | | | $ | 521.4 | | $ | 96.8 |
| 438.6 | % |
| | | | | | | | | | | | | | | | | | | |
Amounts Attributable to Common Shareholders: | | | | | | | | | | | | | | | | | | | |
Reported Income from Continuing Operations | | $ | 340.3 | | $ | 44.7 |
| 661.3 | % | | | $ | 523.4 | | $ | 96.1 |
| 444.6 | % |
Less: Income (Loss) Attributable to Non-Controlling Interests | |
| 1.5 | |
| (0.3) |
| nm | | | |
| 2.1 | |
| (0.5) |
| nm | |
Income from Continuing Operations, net of tax | | $ | 338.8 | | $ | 45.0 |
| 652.9 | % | | | $ | 521.3 | | $ | 96.6 |
| 439.6 | % |
Income from Discontinued Operations, net of tax | |
| 0.1 | |
| 0.1 |
| nm | | | |
| 0.1 | |
| 0.2 |
| nm | |
Net Income Attributable to Common Shareholders | | $ | 338.9 | | $ | 45.1 |
| 651.4 | % | | | $ | 521.4 | | $ | 96.8 |
| 438.6 | % |
Income from Continuing Operations Per Share | | $ | 4.20 | | $ | 0.56 |
| 650.0 | % | | | $ | 6.46 | | $ | 1.20 |
| 438.3 | % |
Income Per Share | | $ | 4.20 | | $ | 0.56 |
| 650.0 | % | | | $ | 6.46 | | $ | 1.20 |
| 438.3 | % |
Weighted Average Shares Outstanding | |
| 80.7 | |
| 80.5 |
| 0.2 | % | | |
| 80.7 | |
| 80.8 |
| (0.1) | % |
| | | | | | | | | | | | | | | | | | | |
nm – not meaningful | | | | | | | | | | | | | | | | | | | |
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PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Condensed Balance Sheets
(Amounts In Millions)
(Unaudited)
|
| June 30, |
| December 31, | ||
| | 2021 | | 2020 | ||
Assets: | | | | | | |
Cash and Cash Equivalents | | $ | 165.2 | | $ | 49.5 |
Accounts Receivable, Net | |
| 913.3 | |
| 806.9 |
Inventories | |
| 2,936.9 | |
| 3,425.6 |
Other Current Assets | |
| 126.9 | |
| 126.8 |
Total Current Assets | |
| 4,142.3 | |
| 4,408.8 |
Property and Equipment, Net | |
| 2,410.0 | |
| 2,404.4 |
Operating Lease Right-of-Use Assets | |
| 2,444.9 | |
| 2,416.5 |
Intangibles | |
| 2,676.5 | |
| 2,491.8 |
Other Long-Term Assets | |
| 1,633.1 | |
| 1,525.7 |
Total Assets | | $ | 13,306.8 | | $ | 13,247.2 |
| | | | | | |
Liabilities and Equity: | | | | | | |
Floor Plan Notes Payable | | $ | 1,383.7 | | $ | 1,780.5 |
Floor Plan Notes Payable – Non-Trade | |
| 1,182.0 | |
| 1,363.8 |
Accounts Payable | |
| 838.0 | |
| 675.4 |
Accrued Expenses and Other Current Liabilities | |
| 916.8 | |
| 767.2 |
Current Portion Long-Term Debt | |
| 81.5 | |
| 87.5 |
Liabilities Held for Sale | |
| 0.5 | |
| 0.5 |
Total Current Liabilities | |
| 4,402.5 | |
| 4,674.9 |
Long-Term Debt | |
| 1,436.3 | |
| 1,602.1 |
Long-Term Operating Lease Liabilities | |
| 2,375.5 | |
| 2,350.3 |
Other Long-Term Liabilities | |
| 1,329.8 | |
| 1,293.8 |
Total Liabilities | |
| 9,544.1 | |
| 9,921.1 |
Equity | |
| 3,762.7 | |
| 3,326.1 |
Total Liabilities and Equity | | $ | 13,306.8 | | $ | 13,247.2 |
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PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Operations
Selected Data
(Unaudited)
| | Three Months Ended | | Six Months Ended |
| ||||||||
| | June 30, | | June 30, |
| ||||||||
|
| 2021 |
| 2020 |
| 2021 |
| 2020 |
| ||||
Geographic Revenue Mix: | | | | | | | | | | | | | |
North America |
| | 60.7 | % | | 67.2 | % | | 60.2 | % | | 62.3 | % |
U.K. |
| | 31.4 | % | | 22.9 | % | | 31.7 | % | | 28.9 | % |
Other International |
| | 7.9 | % | | 9.9 | % | | 8.1 | % | | 8.8 | % |
Total |
| | 100.0 | % | | 100.0 | % | | 100.0 | % | | 100.0 | % |
| | | | | | | | | | | | | |
Revenue: (Amounts in Millions) | | | | | | | | | | | | | |
Retail Automotive | | $ | 6,197.6 | | $ | 3,153.5 | | $ | 11,404.5 | | $ | 7,570.1 | |
Retail Commercial Trucks | |
| 625.3 | |
| 399.2 | |
| 1,060.0 | |
| 890.6 | |
Commercial Vehicles Australia/Power Systems | |
| 164.6 | |
| 98.4 | |
| 296.8 | |
| 199.5 | |
Total | | $ | 6,987.5 | | $ | 3,651.1 | | $ | 12,761.3 | | $ | 8,660.2 | |
| | | | | | | | | | | | | |
Gross Profit: (Amounts in Millions) | | | | | | | | | | | | | |
Retail Automotive | | $ | 1,040.4 | | $ | 466.3 | | $ | 1,840.3 | | $ | 1,144.4 | |
Retail Commercial Trucks | |
| 102.7 | |
| 60.2 | |
| 182.7 | |
| 129.0 | |
Commercial Vehicles Australia/Power Systems | |
| 39.6 | |
| 26.4 | |
| 72.9 | |
| 56.2 | |
Total | | $ | 1,182.7 | | $ | 552.9 | | $ | 2,095.9 | | $ | 1,329.6 | |
| | | | | | | | | | | | | |
Gross Margin: | | | | | | | | | | | | | |
Retail Automotive | |
| 16.8 | % |
| 14.8 | % |
| 16.1 | % |
| 15.1 | % |
Retail Commercial Trucks | |
| 16.4 | % |
| 15.1 | % |
| 17.2 | % |
| 14.5 | % |
Commercial Vehicles Australia/Power Systems | |
| 24.1 | % |
| 26.8 | % |
| 24.6 | % |
| 28.2 | % |
Total | |
| 16.9 | % |
| 15.1 | % |
| 16.4 | % |
| 15.4 | % |
| | Three Months Ended | | Six Months Ended | ||||||
| | June 30, | | June 30, | ||||||
|
| |
| |
| | |
| |
|
| | 2021 | | 2020 | | | 2021 | | 2020 | |
Operating Items as a Percentage of Revenue: | | | | | | | | | | |
Gross Profit |
| 16.9 | % | 15.1 | % | | 16.4 | % | 15.4 | % |
Selling, General and Administrative Expenses |
| 10.7 | % | 12.4 | % | | 11.1 | % | 12.6 | % |
Operating Income |
| 5.8 | % | 2.0 | % | | 4.9 | % | 2.1 | % |
Income from Continuing Operations Before Income Taxes |
| 6.6 | % | 1.7 | % | | 5.6 | % | 1.5 | % |
| | | | | | | | | | |
Operating Items as a Percentage of Total Gross Profit: | | | | | | | | | | |
Selling, General and Administrative Expenses |
| 63.4 | % | 82.0 | % | | 67.5 | % | 82.4 | % |
Operating Income |
| 34.0 | % | 12.9 | % | | 29.7 | % | 13.4 | % |
| | Three Months Ended | | Six Months Ended | ||||||||||
| | June 30, | | June 30, | ||||||||||
|
| | |
| | |
| | | |
| | |
|
(Amounts in Millions) | | 2021 | | 2020 | | | 2021 | | 2020 | | ||||
| | | | | | | | | | | | | | |
EBITDA (1) | | $ | 513.6 | | $ | 117.5 |
| | $ | 808.4 | | $ | 249.2 |
|
Floorplan Credits | | $ | 14.9 | | $ | 8.4 |
| | $ | 27.2 | | $ | 17.0 |
|
Rent Expense | | $ | 59.5 | | $ | 56.5 |
| | $ | 118.4 | | $ | 114.4 |
|
| 8 |
|
PENSKE AUTOMOTIVE GROUP, INC.
Retail Automotive Operations
(Unaudited)
| | Three Months Ended | | | Six Months Ended | ||||||||||||||
| | June 30, | | | June 30, | ||||||||||||||
|
| 2021 |
| 2020 | | Change |
|
| 2021 |
| 2020 |
| Change | ||||||
Retail Automotive Units: | | | | | | | | | | | | | | | | | | | |
New Retail |
| | 57,789 |
| | 30,687 | | 88.3 | % |
|
| | 108,198 |
| | 73,874 | | 46.5 | % |
Used Retail |
| | 74,708 |
| | 42,606 | | 75.3 | % |
|
| | 135,151 |
| | 105,656 | | 27.9 | % |
Total |
| | 132,497 |
| | 73,293 | | 80.8 | % |
|
| | 243,349 |
| | 179,530 | | 35.5 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Revenue: (Amounts in Millions) | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 2,811.3 | | $ | 1,384.7 | | 103.0 | % | | | $ | 5,232.7 | | $ | 3,249.2 | | 61.0 | % |
Used Vehicles | |
| 2,327.6 | |
| 1,166.0 | | 99.6 | % | | |
| 4,135.6 | |
| 2,785.6 | | 48.5 | % |
Finance and Insurance, Net | |
| 212.3 | |
| 97.1 | | 118.6 | % | | |
| 381.1 | |
| 241.5 | | 57.8 | % |
Service and Parts | |
| 546.2 | |
| 345.2 | | 58.2 | % | | |
| 1,049.4 | |
| 858.5 | | 22.2 | % |
Fleet and Wholesale | |
| 300.2 | |
| 160.5 | | 87.0 | % | | |
| 605.7 | |
| 435.3 | | 39.1 | % |
Total Revenue | | $ | 6,197.6 | | $ | 3,153.5 | | 96.5 | % | | | $ | 11,404.5 | | $ | 7,570.1 | | 50.7 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Gross Profit: (Amounts in Millions) | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 276.6 | | $ | 106.2 | | 160.5 | % | | | $ | 481.6 | | $ | 244.8 | | 96.7 | % |
Used Vehicles | |
| 194.1 | |
| 55.8 | | 247.8 | % | | |
| 303.5 | |
| 141.7 | | 114.2 | % |
Finance and Insurance, Net | |
| 212.3 | |
| 97.1 | | 118.6 | % | | |
| 381.1 | |
| 241.5 | | 57.8 | % |
Service and Parts | |
| 337.0 | |
| 201.2 | | 67.5 | % | | |
| 642.4 | |
| 504.9 | | 27.2 | % |
Fleet and Wholesale | |
| 20.4 | |
| 6.0 | | 240.0 | % | | |
| 31.7 | |
| 11.5 | | 175.7 | % |
Total Gross Profit | | $ | 1,040.4 | | $ | 466.3 | | 123.1 | % | | | $ | 1,840.3 | | $ | 1,144.4 | | 60.8 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Revenue Per Vehicle Retailed: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 48,648 | | $ | 45,124 | | 7.8 | % | | | $ | 48,363 | | $ | 43,983 | | 10.0 | % |
Used Vehicles | |
| 31,156 | |
| 27,368 | | 13.8 | % | | |
| 30,599 | |
| 26,365 | | 16.1 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Gross Profit Per Vehicle Retailed: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 4,786 | | $ | 3,462 | | 38.2 | % | | | $ | 4,451 | | $ | 3,315 | | 34.3 | % |
Used Vehicles | |
| 2,598 | |
| 1,310 | | 98.3 | % | | |
| 2,246 | |
| 1,341 | | 67.5 | % |
Finance and Insurance | |
| 1,603 | |
| 1,324 | | 21.1 | % | | |
| 1,566 | |
| 1,345 | | 16.4 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Gross Margin: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | | 9.8 | % | | 7.7 | % | +210 | bps | | | | 9.2 | % | | 7.5 | % | +170 | bps |
Used Vehicles | | | 8.3 | % | | 4.8 | % | +350 | bps | | | | 7.3 | % | | 5.1 | % | +220 | bps |
Service and Parts | | | 61.7 | % | | 58.3 | % | +340 | bps | | | | 61.2 | % | | 58.8 | % | +240 | bps |
Fleet and Wholesale | | | 6.8 | % | | 3.7 | % | +310 | bps | | | | 5.2 | % | | 2.6 | % | +260 | bps |
Total Gross Margin | | | 16.8 | % | | 14.8 | % | +200 | bps | | | | 16.1 | % | | 15.1 | % | +100 | bps |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Revenue Mix Percentages: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | | 45.4 | % | | 43.9 | % | +150 | bps | | | | 45.9 | % | | 42.9 | % | +300 | bps |
Used Vehicles | | | 37.6 | % | | 37.0 | % | +60 | bps | | | | 36.3 | % | | 36.8 | % | (50) | bps |
Finance and Insurance, Net | | | 3.4 | % | | 3.1 | % | +30 | bps | | | | 3.3 | % | | 3.2 | % | +10 | bps |
Service and Parts | | | 8.8 | % | | 10.9 | % | (210) | bps | | | | 9.2 | % | | 11.3 | % | (210) | bps |
Fleet and Wholesale | | | 4.8 | % | | 5.1 | % | (30) | bps | | | | 5.3 | % | | 5.8 | % | (50) | bps |
Total | | | 100.0 | % | | 100.0 | % | | | | | | 100.0 | % | | 100.0 | % | | |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Gross Profit Mix Percentages: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | | 26.6 | % | | 22.8 | % | +380 | bps | | | | 26.2 | % | | 21.4 | % | +480 | bps |
Used Vehicles | | | 18.7 | % | | 12.0 | % | +670 | bps | | | | 16.5 | % | | 12.4 | % | +410 | bps |
Finance and Insurance, Net | | | 20.4 | % | | 20.8 | % | (40) | bps | | | | 20.7 | % | | 21.1 | % | (40) | bps |
Service and Parts | | | 32.4 | % | | 43.1 | % | (1,070) | bps | | | | 34.9 | % | | 44.1 | % | (920) | bps |
Fleet and Wholesale | | | 1.9 | % | | 1.3 | % | +60 | bps | | | | 1.7 | % | | 1.0 | % | +70 | bps |
Total | | | 100.0 | % | | 100.0 | % | | | | | | 100.0 | % | | 100.0 | % | | |
| 9 |
|
PENSKE AUTOMOTIVE GROUP, INC.
Retail Automotive Operations Same-Store
(Unaudited)
| | Three Months Ended | | | Six Months Ended | ||||||||||||||
| | June 30, | | | June 30, | ||||||||||||||
|
| 2021 |
| 2020 | | Change |
|
| 2021 |
| 2020 |
| Change | ||||||
Retail Automotive Same-Store Units: | | | | | | | | | | | | | | | | | | | |
New Retail |
| | 57,622 |
| | 30,088 | | 91.5 | % |
|
| | 107,944 |
| | 72,463 | | 49.0 | % |
Used Retail |
| | 73,270 |
| | 41,952 | | 74.7 | % |
|
| | 133,085 |
| | 104,004 | | 28.0 | % |
Total |
| | 130,892 |
| | 72,040 | | 81.7 | % |
|
| | 241,029 |
| | 176,467 | | 36.6 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Same-Store Revenue: (Amounts in Millions) | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 2,797.2 | | $ | 1,365.3 | | 104.9 | % | | | $ | 5,212.0 | | $ | 3,202.9 | | 62.7 | % |
Used Vehicles | |
| 2,295.6 | |
| 1,151.3 | | 99.4 | % | | |
| 4,090.6 | |
| 2,748.2 | | 48.8 | % |
Finance and Insurance, Net | |
| 209.9 | |
| 95.8 | | 119.1 | % | | |
| 377.7 | |
| 238.2 | | 58.6 | % |
Service and Parts | |
| 543.5 | |
| 340.0 | | 59.9 | % | | |
| 1,045.7 | |
| 844.3 | | 23.9 | % |
Fleet and Wholesale | |
| 298.6 | |
| 159.0 | | 87.8 | % | | |
| 602.3 | |
| 425.2 | | 41.7 | % |
Total Revenue | | $ | 6,144.8 | | $ | 3,111.4 | | 97.5 | % | | | $ | 11,328.3 | | $ | 7,458.8 | | 51.9 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Same-Store Gross Profit: (Amounts in Millions) | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 274.9 | | $ | 105.3 | | 161.1 | % | | | $ | 479.3 | | $ | 242.4 | | 97.7 | % |
Used Vehicles | |
| 191.8 | |
| 55.5 | | 245.6 | % | | |
| 300.7 | |
| 140.2 | | 114.5 | % |
Finance and Insurance, Net | |
| 209.9 | |
| 95.8 | | 119.1 | % | | |
| 377.7 | |
| 238.2 | | 58.6 | % |
Service and Parts | |
| 334.8 | |
| 198.5 | | 68.7 | % | | |
| 639.3 | |
| 497.1 | | 28.6 | % |
Fleet and Wholesale | |
| 20.4 | |
| 5.8 | | 251.7 | % | | |
| 31.7 | |
| 11.2 | | 183.0 | % |
Total Gross Profit | | $ | 1,031.8 | | $ | 460.9 | | 123.9 | % | | | $ | 1,828.7 | | $ | 1,129.1 | | 62.0 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Same-Store Revenue Per Vehicle Retailed: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 48,544 | | $ | 45,378 | | 7.0 | % | | | $ | 48,285 | | $ | 44,201 | | 9.2 | % |
Used Vehicles | |
| 31,330 | |
| 27,444 | | 14.2 | % | | |
| 30,737 | |
| 26,424 | | 16.3 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Same-Store Gross Profit Per Vehicle Retailed: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 4,770 | | $ | 3,499 | | 36.3 | % | | | $ | 4,440 | | $ | 3,345 | | 32.7 | % |
Used Vehicles | |
| 2,618 | |
| 1,322 | | 98.0 | % | | |
| 2,260 | |
| 1,348 | | 67.7 | % |
Finance and Insurance | |
| 1,604 | |
| 1,330 | | 20.6 | % | | |
| 1,567 | |
| 1,350 | | 16.1 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Same-Store Gross Margin: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | | 9.8 | % | | 7.7 | % | +210 | bps | | | | 9.2 | % | | 7.6 | % | +160 | bps |
Used Vehicles | | | 8.4 | % | | 4.8 | % | +360 | bps | | | | 7.4 | % | | 5.1 | % | +230 | bps |
Service and Parts | | | 61.6 | % | | 58.4 | % | +320 | bps | | | | 61.1 | % | | 58.9 | % | +220 | bps |
Fleet and Wholesale | | | 6.8 | % | | 3.6 | % | +320 | bps | | | | 5.3 | % | | 2.6 | % | +270 | bps |
Total Gross Margin | | | 16.8 | % | | 14.8 | % | +200 | bps | | | | 16.1 | % | | 15.1 | % | +100 | bps |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Revenue Mix Percentages: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | | 45.5 | % | | 43.9 | % | +160 | bps | | | | 46.0 | % | | 42.9 | % | +310 | bps |
Used Vehicles | | | 37.4 | % | | 37.0 | % | +40 | bps | | | | 36.1 | % | | 36.8 | % | (70) | bps |
Finance and Insurance, Net | | | 3.4 | % | | 3.1 | % | +30 | bps | | | | 3.3 | % | | 3.2 | % | +10 | bps |
Service and Parts | | | 8.8 | % | | 10.9 | % | (210) | bps | | | | 9.2 | % | | 11.3 | % | (210) | bps |
Fleet and Wholesale | | | 4.9 | % | | 5.1 | % | (20) | bps | | | | 5.4 | % | | 5.8 | % | (40) | bps |
Total | | | 100.0 | % | | 100.0 | % | | | | | | 100.0 | % | | 100.0 | % | | |
| | | | | | | | | | | | | | | | | | | |
Retail Automotive Gross Profit Mix Percentages: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | | 26.6 | % | | 22.8 | % | +380 | bps | | | | 26.2 | % | | 21.5 | % | +470 | bps |
Used Vehicles | | | 18.6 | % | | 12.0 | % | +660 | bps | | | | 16.4 | % | | 12.4 | % | +400 | bps |
Finance and Insurance, Net | | | 20.3 | % | | 20.8 | % | (50) | bps | | | | 20.7 | % | | 21.1 | % | (40) | bps |
Service and Parts | | | 32.4 | % | | 43.1 | % | (1,070) | bps | | | | 35.0 | % | | 44.0 | % | (900) | bps |
Fleet and Wholesale | | | 2.1 | % | | 1.3 | % | +80 | bps | | | | 1.7 | % | | 1.0 | % | +70 | bps |
Total | | | 100.0 | % | | 100.0 | % | | | | | | 100.0 | % | | 100.0 | % | | |
| 10 |
|
PENSKE AUTOMOTIVE GROUP, INC.
Retail Commercial Truck Operations
(Unaudited)
| | Three Months Ended | | | Six Months Ended | ||||||||||||||
| | June 30, | | | June 30, | ||||||||||||||
|
| 2021 |
| 2020 | | Change |
|
| 2021 |
| 2020 |
| Change | ||||||
Retail Commercial Truck Units: | | | | | | | | | | | | | | | | | | | |
New Retail |
| | 3,314 |
| | 2,063 | | 60.6 | % |
|
| | 5,479 |
| | 4,874 | | 12.4 | % |
Used Retail |
| | 832 |
| | 773 | | 7.6 | % |
|
| | 1,673 |
| | 1,471 | | 13.7 | % |
Total |
| | 4,146 |
| | 2,836 | | 46.2 | % |
|
| | 7,152 |
| | 6,345 | | 12.7 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Revenue: (Amounts in Millions) | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 399.2 | | $ | 235.5 | | 69.5 | % | | | $ | 646.7 | | $ | 553.8 | | 16.8 | % |
Used Vehicles | |
| 59.0 | |
| 36.9 | | 59.9 | % | | |
| 110.0 | |
| 71.5 | | 53.8 | % |
Finance and Insurance, Net | |
| 3.8 | |
| 3.2 | | 18.8 | % | | |
| 6.9 | |
| 6.4 | | 7.8 | % |
Service and Parts | |
| 157.3 | |
| 111.6 | | 40.9 | % | | |
| 281.9 | |
| 236.0 | | 19.4 | % |
Wholesale and Other | |
| 6.0 | |
| 12.0 | | (50.0) | % | | |
| 14.5 | |
| 22.9 | | (36.7) | % |
Total Revenue | | $ | 625.3 | | $ | 399.2 | | 56.6 | % | | | $ | 1,060.0 | | $ | 890.6 | | 19.0 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Gross Profit: (Amounts in Millions) | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 19.6 | | $ | 9.6 | | 104.2 | % | | | $ | 33.8 | | $ | 22.1 | | 52.9 | % |
Used Vehicles | |
| 9.5 | |
| (2.9) | | 427.6 | % | | |
| 15.9 | |
| (5.3) | | 400.0 | % |
Finance and Insurance, Net | |
| 3.8 | |
| 3.2 | | 18.8 | % | | |
| 6.9 | |
| 6.4 | | 7.8 | % |
Service and Parts | |
| 66.3 | |
| 49.2 | | 34.8 | % | | |
| 119.0 | |
| 102.5 | | 16.1 | % |
Wholesale and Other | |
| 3.5 | |
| 1.1 | | 218.2 | % | | |
| 7.1 | |
| 3.3 | | 115.2 | % |
Total Gross Profit | | $ | 102.7 | | $ | 60.2 | | 70.6 | % | | | $ | 182.7 | | $ | 129.0 | | 41.6 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Revenue Per Vehicle Retailed: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 120,445 | | $ | 114,176 | | 5.5 | % | | | $ | 118,026 | | $ | 113,621 | | 3.9 | % |
Used Vehicles | |
| 70,932 | |
| 47,721 | | 48.6 | % | | |
| 65,729 | |
| 48,622 | | 35.2 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Gross Profit Per Vehicle Retailed: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 5,909 | | $ | 4,640 | | 27.3 | % | | | $ | 6,176 | | $ | 4,534 | | 36.2 | % |
Used Vehicles | |
| 11,381 | |
| (3,731) | | 405.0 | % | | |
| 9,518 | |
| (3,626) | | 362.5 | % |
Finance and Insurance | |
| 916 | |
| 1,134 | | (19.2) | % | | |
| 971 | |
| 1,008 | | (3.7) | % |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Gross Margin: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | | 4.9 | % |
| 4.1 | % | 80 | bps | | | | 5.2 | % |
| 4.0 | % | +120 | bps |
Used Vehicles | |
| 16.1 | % |
| (7.9) | % | 2,400 | bps | | | | 14.5 | % |
| (7.4) | % | 2,190 | bps |
Service and Parts | |
| 42.1 | % |
| 44.1 | % | (200) | bps | | | | 42.2 | % |
| 43.4 | % | (120) | bps |
Total Gross Margin | |
| 16.4 | % |
| 15.1 | % | +130 | bps | | | | 17.2 | % |
| 14.5 | % | +270 | bps |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Revenue Mix Percentages: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | | 63.8 | % | | 59.0 | % | +480 | bps | | | | 61.0 | % | | 62.2 | % | (120) | bps |
Used Vehicles | | | 9.4 | % | | 9.2 | % | 20 | bps | | | | 10.4 | % | | 8.0 | % | +240 | bps |
Finance and Insurance, Net | | | 0.6 | % | | 0.8 | % | (20) | bps | | | | 0.7 | % | | 0.7 | % | --- | bps |
Service and Parts | | | 25.2 | % | | 28.0 | % | (280) | bps | | | | 26.6 | % | | 26.5 | % | 10 | bps |
Wholesale and Other | | | 1.0 | % | | 3.0 | % | (200) | bps | | | | 1.3 | % | | 2.6 | % | (130) | bps |
Total | | | 100.0 | % | | 100.0 | % | | | | | | 100.0 | % | | 100.0 | % | | |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Gross Profit Mix Percentages: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | | 19.1 | % | | 15.9 | % | +320 | bps | | | | 18.5 | % | | 17.1 | % | +140 | bps |
Used Vehicles | | | 9.3 | % | | (4.8) | % | 1,410 | bps | | | | 8.7 | % | | (4.1) | % | 1,280 | bps |
Finance and Insurance, Net | | | 3.7 | % | | 5.3 | % | (160) | bps | | | | 3.8 | % | | 5.0 | % | (120) | bps |
Service and Parts | | | 64.6 | % | | 81.7 | % | (1,710) | bps | | | | 65.1 | % | | 79.5 | % | (1,440) | bps |
Wholesale and Other | | | 3.3 | % | | 1.9 | % | +140 | bps | | | | 3.9 | % | | 2.5 | % | +140 | bps |
Total | | | 100.0 | % | | 100.0 | % | | | | | | 100.0 | % | | 100.0 | % | | |
| 11 |
|
PENSKE AUTOMOTIVE GROUP, INC.
Retail Commercial Truck Operations Same-Store
(Unaudited)
| | Three Months Ended | | | Six Months Ended | ||||||||||||||
| | June 30, | | | June 30, | ||||||||||||||
|
| 2021 |
| 2020 | | Change |
|
| 2021 |
| 2020 |
| Change | ||||||
Retail Commercial Truck Same-Store Units: | | | | | | | | | | | | | | | | | | | |
New Retail |
| | 2,770 |
| | 2,063 | | 34.3 | % |
|
| | 4,935 |
| | 4,874 | | 1.3 | % |
Used Retail |
| | 803 |
| | 773 | | 3.9 | % |
|
| | 1,644 |
| | 1,471 | | 11.8 | % |
Total |
| | 3,573 |
| | 2,836 | | 26.0 | % |
|
| | 6,579 |
| | 6,345 | | 3.7 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Same-Store Revenue: (Amounts in Millions) | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 339.9 | | $ | 235.5 | | 44.3 | % | | | $ | 587.5 | | $ | 553.8 | | 6.1 | % |
Used Vehicles | |
| 56.8 | |
| 36.9 | | 53.9 | % | | |
| 107.7 | |
| 71.5 | | 50.6 | % |
Finance and Insurance, Net | |
| 3.7 | |
| 3.2 | | 15.6 | % | | |
| 6.9 | |
| 6.4 | | 7.8 | % |
Service and Parts | |
| 136.3 | |
| 111.6 | | 22.1 | % | | |
| 260.9 | |
| 236.0 | | 10.6 | % |
Wholesale and Other | |
| 6.0 | |
| 12.0 | | (50.0) | % | | |
| 14.5 | |
| 22.9 | | (36.7) | % |
Total Revenue | | $ | 542.7 | | $ | 399.2 | | 35.9 | % | | | $ | 977.5 | | $ | 890.6 | | 9.8 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Same-Store Gross Profit: (Amounts in Millions) | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 17.9 | | $ | 9.6 | | 86.5 | % | | | $ | 32.2 | | $ | 22.1 | | 45.7 | % |
Used Vehicles | |
| 9.1 | |
| (2.9) | | 413.8 | % | | |
| 15.5 | |
| (5.3) | | 392.5 | % |
Finance and Insurance, Net | |
| 3.7 | |
| 3.2 | | 15.6 | % | | |
| 6.9 | |
| 6.4 | | 7.8 | % |
Service and Parts | |
| 58.0 | |
| 49.2 | | 17.9 | % | | |
| 110.7 | |
| 102.5 | | 8.0 | % |
Wholesale and Other | |
| 3.5 | |
| 1.0 | | 250.0 | % | | |
| 6.9 | |
| 3.2 | | 115.6 | % |
Total Gross Profit | | $ | 92.2 | | $ | 60.1 | | 53.4 | % | | | $ | 172.2 | | $ | 128.9 | | 33.6 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Same-Store Revenue Per Vehicle Retailed: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 122,722 | | $ | 114,176 | | 7.5 | % | | | $ | 119,038 | | $ | 113,621 | | 4.8 | % |
Used Vehicles | |
| 70,723 | |
| 47,721 | | 48.2 | % | | |
| 65,536 | |
| 48,622 | | 34.8 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Same-Store Gross Profit Per Vehicle Retailed: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | $ | 6,462 | | $ | 4,640 | | 39.3 | % | | | $ | 6,516 | | $ | 4,534 | | 43.7 | % |
Used Vehicles | |
| 11,276 | |
| (3,731) | | 402.2 | % | | |
| 9,434 | |
| (3,626) | | 360.2 | % |
Finance and Insurance | |
| 1,047 | |
| 1,134 | | (7.7) | % | | |
| 1,047 | |
| 1,008 | | 3.9 | % |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Same-Store Gross Margin: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | | 5.3 | % |
| 4.1 | % | +120 | bps | | | | 5.5 | % |
| 4.0 | % | +150 | bps |
Used Vehicles | |
| 16.0 | % |
| (7.9) | % | +2,390 | bps | | | | 14.4 | % |
| (7.4) | % | +2,180 | bps |
Service and Parts | |
| 42.6 | % |
| 44.1 | % | (150) | bps | | | | 42.4 | % |
| 43.4 | % | (100) | bps |
Total Gross Margin | |
| 17.0 | % |
| 15.1 | % | +190 | bps | | | | 17.6 | % |
| 14.5 | % | +310 | bps |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Revenue Mix Percentages: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | | 62.6 | % | | 59.0 | % | +360 | bps | | | | 60.1 | % | | 62.2 | % | (210) | bps |
Used Vehicles | | | 10.5 | % | | 9.2 | % | +130 | bps | | | | 11.0 | % | | 8.0 | % | +300 | bps |
Finance and Insurance, Net | | | 0.7 | % | | 0.8 | % | (10) | bps | | | | 0.7 | % | | 0.7 | % | --- | bps |
Service and Parts | | | 25.1 | % | | 28.0 | % | (290) | bps | | | | 26.7 | % | | 26.5 | % | +20 | bps |
Wholesale and Other | | | 1.1 | % | | 3.0 | % | (190) | bps | | | | 1.5 | % | | 2.6 | % | (110) | bps |
Total | | | 100.0 | % | | 100.0 | % | | | | | | 100.0 | % | | 100.0 | % | | |
| | | | | | | | | | | | | | | | | | | |
Retail Commercial Truck Gross Profit Mix Percentages: | | | | | | | | | | | | | | | | | | | |
New Vehicles | | | 19.4 | % | | 16.0 | % | +340 | bps | | | | 18.7 | % | | 17.1 | % | +160 | bps |
Used Vehicles | | | 9.9 | % | | (4.8) | % | +1,470 | bps | | | | 9.0 | % | | (4.1) | % | +1,310 | bps |
Finance and Insurance, Net | | | 4.0 | % | | 5.3 | % | (130) | bps | | | | 4.0 | % | | 5.0 | % | (100) | bps |
Service and Parts | | | 62.9 | % | | 81.9 | % | (1,900) | bps | | | | 64.3 | % | | 79.5 | % | (1,520) | bps |
Wholesale and Other | | | 3.8 | % | | 1.6 | % | +220 | bps | | | | 4.0 | % | | 2.5 | % | +150 | bps |
Total | | | 100.0 | % | | 100.0 | % | | | | | | 100.0 | % | | 100.0 | % | | |
| 12 |
|
PENSKE AUTOMOTIVE GROUP, INC.
Supplemental Data
(Unaudited)
| | Three Months Ended | | Six Months Ended |
| ||||
| | June 30, | | June 30, |
| ||||
|
| 2021 |
| 2020 |
| 2021 |
| 2020 |
|
Retail Automotive Revenue Mix: | | | | | | | | | |
Premium: | | | | | | | | | |
BMW / MINI |
| 23 | % | 22 | % | 23 | % | 22 | % |
Audi |
| 12 | % | 13 | % | 12 | % | 13 | % |
Mercedes-Benz |
| 10 | % | 10 | % | 10 | % | 10 | % |
Land Rover / Jaguar |
| 9 | % | 8 | % | 9 | % | 9 | % |
Porsche |
| 7 | % | 7 | % | 7 | % | 7 | % |
Ferrari / Maserati |
| 2 | % | 3 | % | 3 | % | 3 | % |
Lexus |
| 3 | % | 3 | % | 3 | % | 3 | % |
Acura |
| 1 | % | 1 | % | 1 | % | 1 | % |
Bentley |
| 1 | % | 1 | % | 1 | % | 1 | % |
Others |
| 2 | % | 2 | % | 2 | % | 2 | % |
Total Premium |
| 70 | % | 70 | % | 71 | % | 71 | % |
Volume Non-U.S.: | | | | | | | | | |
Toyota |
| 11 | % | 12 | % | 11 | % | 11 | % |
Honda |
| 6 | % | 7 | % | 6 | % | 6 | % |
Volkswagen |
| 2 | % | 2 | % | 2 | % | 2 | % |
Nissan |
| 1 | % | 1 | % | 1 | % | 1 | % |
Others |
| 2 | % | 2 | % | 2 | % | 2 | % |
Total Volume Non-U.S. |
| 22 | % | 24 | % | 22 | % | 22 | % |
U.S.: | | | | | | | | | |
General Motors / Chrysler / Ford |
| 1 | % | 2 | % | 1 | % | 1 | % |
CarShop Used Vehicle SuperCenters | | 7 | % | 4 | % | 6 | % | 6 | % |
Total |
| 100 | % | 100 | % | 100 | % | 100 | % |
| | Three Months Ended | | Six Months Ended | ||||||||||||
| | June 30, | | June 30, | ||||||||||||
Capital Expenditures / Stock Repurchases: | | 2021 | | 2020 | | 2021 | | 2020 | ||||||||
(Amounts in Millions) | | | | | | | | | | | | | | | | |
Capital expenditures | | $ | | 48.4 | | $ | | 51.1 | | $ | | 90.8 | | $ | | 76.8 |
Cash paid for acquisitions, net of cash acquired | | $ | | 278.0 | | $ | | — | | $ | | 278.0 | | $ | | — |
Stock repurchases | | | | | | | | | | | | | | | | |
Aggregate purchase price | | $ | | 40.9 | | $ | | 4.8 | | $ | | 40.9 | | $ | | 34.2 |
Shares repurchased | | | | 0.5 | | | | 0.1 | | | | 0.5 | | | | 1.0 |
Balance Sheet and Other Highlights: | | | | | | June 30, 2021 | | December 31, 2020 | ||||||||
(Amounts in Millions) | | | | | | | | | | | | | | | | |
Cash and Cash Equivalents | | | | | | | | | | $ | | 165.2 | | $ | | 49.5 |
Inventories | | | | | | | | | | $ | | 2,936.9 | | $ | | 3,425.6 |
Total Floorplan Notes Payable | | | | | | | | | | $ | | 2,565.7 | | $ | | 3,144.3 |
Total Long-Term Debt | | | | | | | | | | $ | | 1,517.8 | | $ | | 1,689.6 |
Equity | | | | | | | | | | $ | | 3,762.7 | | $ | | 3,326.1 |
| | | | | | | | | | | | | | | | |
Debt to Total Capitalization Ratio | | | | | | | | | | | | 28.7% | | | | 33.7% |
Leverage Ratio | | | | | | | | | | | | 1.0x | | | | 1.8x |
| | | | | | | | | | | | | | | | |
New vehicle days' supply | | | | | | | | | | | | 26 days | | | | 50 days |
Used vehicle days' supply | | | | | | | | | | | | 38 days | | | | 48 days |
| 13 |
|
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, 2021, and 2020:
Income from Continuing Operations:
| | Three Months Ended | | | Six Months Ended |
| ||||||||||||||
(Amounts in Millions) | | June 30, | | | June 30, |
| ||||||||||||||
| | 2021 | | | 2020 | | % Change | | | 2021 | | | 2020 | | % Change |
| ||||
| | | | | | | | | | | | | | | | | | | | |
Income from Continuing Operations | | $ | 338.8 | | | $ | 45.0 |
| 652.9 | % | | $ | 521.3 | | | $ | 96.6 |
| 439.6 | % |
U.K. 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 | | $ | 360.2 | | | $ | 45.0 |
| 700.4 | % | | $ | 542.7 | | | $ | 96.6 |
| 461.8 | % |
Earnings Per Share:
| | Three Months Ended | | | Six Months Ended |
| ||||||||||||||
| | June 30, | | | June 30, |
| ||||||||||||||
| | 2021 | | | 2020 | | % Change | | | 2021 | | | 2020 | | % Change |
| ||||
| | | | | | | | | | | | | | | | | | | | |
Earnings Per Share from Continuing Operations | | $ | 4.20 | | | $ | 0.56 |
| 650.0 | % | | $ | 6.46 | | | $ | 1.20 |
| 438.3 | % |
U.K. 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 | | $ | 4.47 | | | $ | 0.56 | | 698.2 | % | | $ | 6.73 | | | $ | 1.20 | | 460.8 | % |
| (1) | Related to 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 a $17.0 million expense in connection with the redemption of our 5.50% senior subordinated notes due 2026, resulting in an after-tax charge of $12.6 million, or $0.16 per share |
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, 2021, and 2020:
| | Three Months Ended | | | | | | | ||||
| | June 30, | | 2021 vs. 2020 | ||||||||
(Amounts in Millions) | | 2021 | | 2020 | | Change | | % Change | ||||
| | | | | | | | | | | | |
Net Income | | $ | 340.4 | | $ | 44.8 |
| $ | 295.6 | | 659.8 | % |
Add: Depreciation | |
| 30.2 | |
| 27.9 |
| | 2.3 | | 8.2 | % |
Other Interest Expense | |
| 19.7 | |
| 28.4 |
| | (8.7) | | (30.6) | % |
Income Taxes | |
| 123.4 | |
| 16.5 |
| | 106.9 | | 647.9 | % |
Income from Discontinued Operations, net of tax | |
| (0.1) | |
| (0.1) |
| | — | | nm | |
EBITDA | | $ | 513.6 | | $ | 117.5 |
| $ | 396.1 | | 337.1 | % |
Add: Debt redemption costs (see above) | | | 17.0 | | | — | | | 17.0 | | nm | |
Adjusted EBITDA | | $ | 530.6 | | $ | 117.5 |
| $ | 413.1 | | 351.6 | % |
| | Six Months Ended | | | | | | | ||||
| | June 30, | | 2021 vs. 2020 | ||||||||
(Amounts in Millions) | | 2021 | | 2020 | | Change | | % Change | ||||
| | | | | | | | | | | | |
Net Income | | $ | 523.5 | | $ | 96.3 |
| $ | 427.2 | | 443.6 | % |
Add: Depreciation | |
| 59.5 | |
| 56.4 |
| | 3.1 | | 5.5 | % |
Other Interest Expense | |
| 37.6 | |
| 60.1 |
| | (22.5) | | (37.4) | % |
Income Taxes | |
| 187.9 | |
| 36.6 |
| | 151.3 | | 413.4 | % |
Income from Discontinued Operations, net of tax | |
| (0.1) | |
| (0.2) |
| | 0.1 | | nm | |
EBITDA | | $ | 808.4 | | $ | 249.2 |
| $ | 559.2 | | 224.4 | % |
Add: Debt redemption costs (see above) | | | 17.0 | | | — | | | 17.0 | | nm | |
Adjusted EBITDA | | $ | 825.4 | | $ | 249.2 |
| $ | 576.2 | | 231.2 | % |
nm – not meaningful
| 14 |
|