Record Third Quarter Revenue — Increased 7% to
$6.9 Billion
Record Third Quarter Earnings Per Share —
Increased 3% to $4.61
Premier Truck Group EBT — Increased 9% to
$52.8 Million
Earnings From Penske Transportation Solutions
— Increased 15% to $135.5
Million
Repurchased 6.4 Million Shares of Common Stock
for $675.1 Million Year-To-Date
Through October 25, 2022
BLOOMFIELD HILLS, Mich., Oct. 26,
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 quarterly earnings for
the third quarter of 2022. For the quarter, revenue increased 7% to
$6.9 billion. Income from continuing
operations before taxes decreased 2% to $467.2 million from $476.1
million, income from continuing operations attributable to
common stockholders decreased 4% to $340.1
million from $354.8 million,
and related earnings per share increased 3% to $4.61 from $4.46
when compared to the same period last year. Foreign currency
exchange negatively impacted revenue by $349.4 million, income from continuing operations
before taxes by $13.4 million, income
from continuing operations attributable to common stockholders by
$10.7 million, and earnings per share
by $0.14. Excluding the impact from
foreign currency exchange, revenues increased 12%, income from
continuing operations before taxes increased 1%, income from
continuing operations attributable to common stockholders decreased
1%, and earnings per share increased approximately 7%.
Third Quarter 2022 Operating Highlights Compared to Third
Quarter 2021
(Percentage Change Excluding Foreign Currency Exchange Shown
in Parenthesis)
- Retail Automotive Same-Store Revenue – decreased 3%
(+4%)
-
- New Vehicle -1% (+4%); Used Vehicle -8% (flat);
Finance & Insurance -1% (+5%); Service & Parts +4%
(+10%)
- Retail Automotive Same-Store Gross Profit – decreased 5%
(flat)
-
- New Vehicle +6% (+12%); Used Vehicle -34% (-29%);
Finance & Insurance -1% (+5%); Service & Parts +3%
(+8%)
- Retail Automotive Same-Store Variable Gross Profit Per Unit
Retailed – increased $70/unit, or
1% (+7%), to $5,830
- Retail Commercial Truck Same-Store Revenue – increased
29%
Commenting on the results, Chair and CEO Roger Penske said, "I am pleased to report a
strong third quarter as our performance continues to demonstrate
the benefits of the Company's diversification. Demand for new
vehicles remains strong in both automotive and truck retail
operations. In addition, same-store service and parts revenue
increased 10% from retail automotive operations (excluding changes
in foreign currency exchange) and increased 23% from commercial
truck operations. Further, the contribution to earnings from our
Penske Transportation Solutions investment increased 15%."
For the nine months ended September 30, 2022, the Company
reported an 8% increase in revenue to $20.8
billion. Income from continuing operations before taxes
increased 23% to $1.5 billion from
$1.2 billion, income from continuing
operations attributable to common stockholders increased 24% to
$1.1 billion, and related earnings
per share increased 31% to $14.31.
Foreign currency exchange negatively impacted revenue by
$629.2 million, income from
continuing operations before taxes by $29.1
million, income from continuing operations attributable to
common stockholders by $23.0 million,
and earnings per share by approximately $0.30.
Retail Automotive Dealerships
For the three months ended September 30, 2022, total retail
automotive revenue increased 2% to $5.8 billion, including a 3% decrease on a
same-store basis when compared to the same period last year. Total
retail automotive gross profit decreased 0.4% to $1.0 billion, including a 5% decrease on a
same-store basis. Gross margin decreased 40 basis points to 17.5%
as variable gross profit per unit retailed increased 1%, or
$38, to $5,785. Excluding the impact from foreign
currency exchange, variable gross profit per unit increased 7%, or
$374, to $6,121. Excluding the impact from foreign
currency exchange, total retail automotive revenue increased 8% and
total retail automotive gross profit increased 4%.
CarShop Used Vehicle Centers
As of September 30, 2022, we operated 21 CarShop used
vehicle locations. For the three months ended September 30,
2022, retail unit sales decreased by 5% to 17,567 while total
revenue decreased by 7% to $406.4
million, including a revenue decrease of 12% on a same-store
basis. For the nine months ended September 30, 2022, retail
unit sales increased by 18% to 57,214 while total revenue increased
by 28% to $1.4 billion, including a
revenue increase of 18% on a same-store basis.
Retail Commercial Truck Dealerships
As of September 30, 2022, we operated 39 North American
retail 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. During the third quarter, total
commercial truck revenue increased 42% to $1.0 billion and same-store revenue increased 29%
to $922.5 million. Earnings before
taxes increased 9% to $52.8 million
compared to $48.3 million in the same
period last year, and return on sales was 5.2%. For the nine months
ended September 30, 2022, total commercial truck revenue
increased 45% to $2.6 billion and
same-store revenue increased to 28% to $2.0
billion. Earnings before taxes increased 42% to $163.6 million compared to $115.5 million in the same period last year, and
return on sales was 6.3%.
Penske Australia
Penske Australia is the exclusive importer and distributor of
certain heavy- and medium-duty trucks and buses, 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 September 30, 2022, revenue decreased 1% to
$143.4 million and earnings before
taxes decreased 2% to $9.6 million
when compared to the same period last year. For the nine months
ended September 30, 2022, revenue decreased 1% to $438.2 million and earnings before taxes
increased 19% to $28.9 million when
compared to the same period last year. Excluding foreign currency
exchange impacts for the three and nine months ended
September 30, 2022, revenue increased 7% for each period.
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 nine months ended
September 30, 2022, the Company recorded $135.5 million and $390.6
million in earnings compared to $118.3 million and $274.5
million for the same periods last year, representing
increases of 15% and 42%, respectively. During the third quarter,
PTS continued to expand its fleet and now manages over 400,000
trucks, tractors, and trailers. The increase in earnings was
principally driven by increased demand for PTS's full-service
leasing, rental, logistics services, and remarketing of used
trucks.
Corporate Development and Capital Allocation
Year-to-date, the Company has added approximately $1.3 billion in annualized revenue through
acquisitions and open points which includes approximately
$550 million in annualized revenues
expected through 2022 related to the recently completed acquisition
of Mercedes-Benz dealerships in the U.K. The acquisitions consist
of four commercial truck dealerships located in Ontario, Canada and 19 retail automotive
franchises, consisting of 15 in the U.K. and four in the U.S, and
we also opened two retail automotive franchises that we were
awarded in the U.S.
Based on the Company's strong earnings and cash flow, the Board
of Directors has increased the quarterly dividend four times in
2022 from $0.46 per share to
$0.57 per share. During the nine
months ended September 30, 2022, the Company repurchased 5.5
million shares of common stock for approximately $584.8 million under its securities repurchase
program and acquired 148,440 shares of common stock for
$17.2 million from employees in
connection with a net share settlement feature of employee equity
awards. From October 1, 2022, through
October 25, 2022, the Company repurchased an additional 0.9
million shares for an aggregate purchase price of $90.4 million under our securities repurchase
program. In October 2022, the Board
of Directors increased the authority delegated to management to
repurchase our outstanding securities by $250 million. As a result, $268.2 million remained outstanding and available
for repurchases as of October 25, 2022.
Conference Call
Penske Automotive Group will host a conference call discussing
financial results relating to the third quarter of 2022 on
Wednesday, October 26, 2022, at 2:00 p.m.
Eastern Time. To listen to the conference call, participants
must dial (844) 200-6205 [International, please dial (929)
526-1599] using access code 814779. The call will also be
simultaneously broadcast over the Internet, available through the
Investors section of the Penske Automotive Group website.
Additionally, an investor presentation relating to the third
quarter 2022 financial results has been posted to the Investors
section of 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
400,000 trucks, tractors, and trailers 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, those related to general
economic and industry conditions, including the effect of COVID-19
on the global economy; the distribution rate, effectiveness, and
acceptance of vaccines for COVID-19; our ability to react
effectively to changing business conditions in light of the
COVID-19 pandemic; the rate of inflation, including its impact on
vehicle affordability; changes in interest rates and foreign
currency exchange rates; our ability to consummate and integrate
acquisitions; the level of vehicle sales in the markets where we
operate; our ability to obtain vehicles and parts from our
manufacturers, especially in light of the COVID-19 pandemic and the
war in Ukraine, including global
shortages in microchip availability or other vehicle components;
changes in the retail model either from direct sales by
manufacturers, a transition to an agency model of sales, sales by
online competitors, or from the expansion of electric vehicles; our
ability to realize returns on our significant capital investment in
new and upgraded dealership facilities; our ability to navigate a
rapidly changing automotive and truck landscape; our ability to
respond to new or enhanced regulations relating to automotive
dealerships; the success of our distribution of commercial
vehicles, engines, and power systems; 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 periods ended
March 31, 2022, and June 30, 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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
Revenue
|
$
6,920.7
|
|
$
6,497.3
|
|
6.5 %
|
|
$ 20,803.0
|
|
$ 19,258.6
|
|
8.0 %
|
Cost of
Sales
|
5,733.8
|
|
5,331.6
|
|
7.5 %
|
|
17,147.4
|
|
15,997.0
|
|
7.2 %
|
Gross
Profit
|
$
1,186.9
|
|
$
1,165.7
|
|
1.8 %
|
|
$
3,655.6
|
|
$
3,261.6
|
|
12.1 %
|
SG&A
Expenses
|
792.7
|
|
757.7
|
|
4.6 %
|
|
2,408.2
|
|
2,171.8
|
|
10.9 %
|
Depreciation
|
31.5
|
|
30.2
|
|
4.3 %
|
|
95.1
|
|
89.7
|
|
6.0 %
|
Operating
Income
|
$ 362.7
|
|
$ 377.8
|
|
(4.0) %
|
|
$
1,152.3
|
|
$
1,000.1
|
|
15.2 %
|
Floor Plan Interest
Expense
|
(13.8)
|
|
(6.0)
|
|
130.0 %
|
|
(30.3)
|
|
(23.4)
|
|
29.5 %
|
Other Interest
Expense
|
(17.9)
|
|
(16.2)
|
|
10.5 %
|
|
(51.4)
|
|
(53.8)
|
|
(4.5) %
|
Debt Redemption
Costs
|
—
|
|
—
|
|
nm
|
|
—
|
|
(17.0)
|
|
nm
|
Equity in Earnings of
Affiliates
|
136.2
|
|
120.5
|
|
13.0 %
|
|
393.8
|
|
281.5
|
|
39.9 %
|
Income from Continuing
Operations Before Income Taxes
|
$ 467.2
|
|
$ 476.1
|
|
(1.9) %
|
|
$
1,464.4
|
|
$
1,187.4
|
|
23.3 %
|
Income Taxes
|
(125.7)
|
|
(120.1)
|
|
4.7 %
|
|
(377.5)
|
|
(308.0)
|
|
22.6 %
|
Income from Continuing
Operations
|
$ 341.5
|
|
$ 356.0
|
|
(4.1) %
|
|
$
1,086.9
|
|
$ 879.4
|
|
23.6 %
|
Income from
Discontinued Operations, net of tax
|
—
|
|
0.3
|
|
nm
|
|
—
|
|
0.4
|
|
nm
|
Net Income
|
$ 341.5
|
|
$ 356.3
|
|
(4.2) %
|
|
$
1,086.9
|
|
$ 879.8
|
|
23.5 %
|
Less: Income
Attributable to Non-Controlling Interests
|
1.4
|
|
1.2
|
|
nm
|
|
4.9
|
|
3.3
|
|
nm
|
Net Income
Attributable to Common Stockholders
|
$ 340.1
|
|
$ 355.1
|
|
(4.2) %
|
|
$
1,082.0
|
|
$ 876.5
|
|
23.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts Attributable to
Common Stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
Reported Income from
Continuing Operations
|
$ 341.5
|
|
$ 356.0
|
|
(4.1) %
|
|
$
1,086.9
|
|
$ 879.4
|
|
23.6 %
|
Less: Income
Attributable to Non-Controlling Interests
|
1.4
|
|
1.2
|
|
nm
|
|
4.9
|
|
3.3
|
|
nm
|
Income from Continuing
Operations, net of tax
|
$ 340.1
|
|
$ 354.8
|
|
(4.1) %
|
|
$
1,082.0
|
|
$ 876.1
|
|
23.5 %
|
Income from
Discontinued Operations, net of tax
|
—
|
|
0.3
|
|
nm
|
|
—
|
|
0.4
|
|
nm
|
Net Income
Attributable to Common Stockholders
|
$ 340.1
|
|
$ 355.1
|
|
(4.2) %
|
|
$
1,082.0
|
|
$ 876.5
|
|
23.4 %
|
Income from Continuing
Operations Per Share
|
$ 4.61
|
|
$ 4.46
|
|
3.4 %
|
|
$ 14.31
|
|
$ 10.91
|
|
31.2 %
|
Income Per
Share
|
$ 4.61
|
|
$ 4.47
|
|
3.1 %
|
|
$ 14.31
|
|
$ 10.92
|
|
31.0 %
|
Weighted Average
Shares Outstanding
|
73.8
|
|
79.5
|
|
(7.2) %
|
|
75.6
|
|
80.3
|
|
(5.9) %
|
|
|
|
|
|
|
|
|
|
|
|
|
nm – not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
Consolidated Condensed
Balance Sheets
(Amounts In
Millions)
(Unaudited)
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2022
|
|
2021
|
Assets:
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
92.3
|
|
$
100.7
|
Accounts Receivable,
Net
|
|
|
831.3
|
|
|
734.0
|
Inventories
|
|
|
3,146.9
|
|
|
3,129.0
|
Other Current
Assets
|
|
|
139.8
|
|
|
111.7
|
Total Current
Assets
|
|
|
4,210.3
|
|
|
4,075.4
|
Property and
Equipment, Net
|
|
|
2,415.5
|
|
|
2,442.2
|
Operating Lease
Right-of-Use Assets
|
|
|
2,386.9
|
|
|
2,451.4
|
Intangibles
|
|
|
2,794.0
|
|
|
2,765.6
|
Other Long-Term
Assets
|
|
|
1,781.4
|
|
|
1,730.0
|
Total
Assets
|
|
$
13,588.1
|
|
$
13,464.6
|
|
|
|
|
|
|
|
Liabilities and
Equity:
|
|
|
|
|
|
|
Floor Plan Notes
Payable
|
|
$
1,383.3
|
|
$
1,144.8
|
Floor Plan Notes
Payable – Non-Trade
|
|
|
1,212.9
|
|
|
1,409.9
|
Accounts
Payable
|
|
|
828.0
|
|
|
767.1
|
Accrued Expenses and
Other Current Liabilities
|
|
|
813.2
|
|
|
870.3
|
Current Portion
Long-Term Debt
|
|
|
76.0
|
|
|
82.0
|
Liabilities Held for
Sale
|
|
|
—
|
|
|
0.5
|
Total Current
Liabilities
|
|
|
4,313.4
|
|
|
4,274.6
|
Long-Term
Debt
|
|
|
1,561.9
|
|
|
1,392.0
|
Long-Term Operating
Lease Liabilities
|
|
|
2,310.1
|
|
|
2,373.6
|
Other Long-Term
Liabilities
|
|
|
1,314.7
|
|
|
1,329.4
|
Total
Liabilities
|
|
|
9,500.1
|
|
|
9,369.6
|
Equity
|
|
|
4,088.0
|
|
|
4,095.0
|
Total Liabilities and
Equity
|
|
$
13,588.1
|
|
$
13,464.6
|
PENSKE AUTOMOTIVE
GROUP, INC.
Consolidated
Operations
Selected
Data
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Geographic Revenue
Mix:
|
|
|
|
|
|
|
|
North
America
|
63.9 %
|
|
61.4 %
|
|
61.4 %
|
|
60.6 %
|
U.K.
|
28.9 %
|
|
31.6 %
|
|
31.1 %
|
|
31.7 %
|
Other
International
|
7.2 %
|
|
7.0 %
|
|
7.5 %
|
|
7.7 %
|
Total
|
100.0 %
|
|
100.0 %
|
|
100.0 %
|
|
100.0 %
|
|
|
|
|
|
|
|
|
Revenue: (Amounts in
Millions)
|
|
|
|
|
|
|
|
Retail
Automotive
|
$
5,757.8
|
|
$
5,634.9
|
|
$ 17,784.3
|
|
$ 17,039.4
|
Retail Commercial
Truck
|
1,019.5
|
|
717.3
|
|
2,580.5
|
|
1,777.3
|
Commercial Vehicle
Distribution and Other
|
143.4
|
|
145.1
|
|
438.2
|
|
441.9
|
Total
|
$
6,920.7
|
|
$
6,497.3
|
|
$ 20,803.0
|
|
$ 19,258.6
|
|
|
|
|
|
|
|
|
Gross Profit: (Amounts
in Millions)
|
|
|
|
|
|
|
|
Retail
Automotive
|
$
1,006.9
|
|
$
1,010.9
|
|
$
3,117.6
|
|
$
2,851.2
|
Retail Commercial
Truck
|
139.7
|
|
115.3
|
|
416.9
|
|
298.0
|
Commercial Vehicle
Distribution and Other
|
40.3
|
|
39.5
|
|
121.1
|
|
112.4
|
Total
|
$
1,186.9
|
|
$
1,165.7
|
|
$
3,655.6
|
|
$
3,261.6
|
|
|
|
|
|
|
|
|
Gross
Margin:
|
|
|
|
|
|
|
|
Retail
Automotive
|
17.5 %
|
|
17.9 %
|
|
17.5 %
|
|
16.7 %
|
Retail Commercial
Truck
|
13.7 %
|
|
16.1 %
|
|
16.2 %
|
|
16.8 %
|
Commercial Vehicle
Distribution and Other
|
28.1 %
|
|
27.2 %
|
|
27.6 %
|
|
25.4 %
|
Total
|
17.1 %
|
|
17.9 %
|
|
17.6 %
|
|
16.9 %
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Operating Items as a
Percentage of Revenue:
|
|
|
|
|
|
|
|
Gross
Profit
|
17.1 %
|
|
17.9 %
|
|
17.6 %
|
|
16.9 %
|
Selling, General and
Administrative Expenses
|
11.5 %
|
|
11.7 %
|
|
11.6 %
|
|
11.3 %
|
Operating
Income
|
5.2 %
|
|
5.8 %
|
|
5.5 %
|
|
5.2 %
|
Income from Continuing
Operations Before Income Taxes
|
6.8 %
|
|
7.3 %
|
|
7.0 %
|
|
6.2 %
|
|
|
|
|
|
|
|
|
Operating Items as a
Percentage of Total Gross Profit:
|
|
|
|
|
|
|
|
Selling, General and
Administrative Expenses
|
66.8 %
|
|
65.0 %
|
|
65.9 %
|
|
66.6 %
|
Operating
Income
|
30.6 %
|
|
32.4 %
|
|
31.5 %
|
|
30.7 %
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
(Amounts in
Millions)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
$ 516.6
|
|
$ 522.5
|
|
$
1,610.9
|
|
$
1,330.9
|
Floor Plan
Credits
|
$ 10.1
|
|
$ 10.9
|
|
$ 30.0
|
|
$ 38.1
|
Rent Expense
|
$ 60.4
|
|
$ 59.3
|
|
$ 182.1
|
|
$ 177.7
|
_______________________
|
|
|
|
|
|
|
|
|
|
|
|
(1)
See the following Non-GAAP reconciliation
table.
|
|
|
|
|
|
|
|
|
|
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
Retail Automotive
Operations
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
Retail Automotive
Units:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Retail
|
|
44,446
|
|
|
44,373
|
|
0.2 %
|
|
|
135,489
|
|
|
152,571
|
|
(11.2) %
|
Used Retail
|
|
65,523
|
|
|
70,450
|
|
(7.0) %
|
|
|
203,748
|
|
|
205,601
|
|
(0.9) %
|
Total
|
|
109,969
|
|
|
114,823
|
|
(4.2) %
|
|
|
339,237
|
|
|
358,172
|
|
(5.3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Revenue: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
2,395.2
|
|
$
|
2,275.2
|
|
5.3 %
|
|
$
|
7,286.7
|
|
$
|
7,507.9
|
|
(2.9) %
|
Used
Vehicles
|
|
2,208.8
|
|
|
2,302.3
|
|
(4.1) %
|
|
|
7,019.5
|
|
|
6,437.9
|
|
9.0 %
|
Finance and Insurance,
Net
|
|
208.1
|
|
|
202.7
|
|
2.7 %
|
|
|
646.8
|
|
|
583.8
|
|
10.8 %
|
Service and
Parts
|
|
609.8
|
|
|
555.3
|
|
9.8 %
|
|
|
1,793.0
|
|
|
1,604.7
|
|
11.7 %
|
Fleet and
Wholesale
|
|
335.9
|
|
|
299.4
|
|
12.2 %
|
|
|
1,038.3
|
|
|
905.1
|
|
14.7 %
|
Total
Revenue
|
$
|
5,757.8
|
|
$
|
5,634.9
|
|
2.2 %
|
|
$
|
17,784.3
|
|
$
|
17,039.4
|
|
4.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Gross
Profit: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
296.8
|
|
$
|
264.0
|
|
12.4 %
|
|
$
|
920.5
|
|
$
|
745.6
|
|
23.5 %
|
Used
Vehicles
|
|
131.3
|
|
|
193.2
|
|
(32.0) %
|
|
|
442.3
|
|
|
496.7
|
|
(11.0) %
|
Finance and Insurance,
Net
|
|
208.1
|
|
|
202.7
|
|
2.7 %
|
|
|
646.8
|
|
|
583.8
|
|
10.8 %
|
Service and
Parts
|
|
359.4
|
|
|
333.7
|
|
7.7 %
|
|
|
1,069.1
|
|
|
976.1
|
|
9.5 %
|
Fleet and
Wholesale
|
|
11.3
|
|
|
17.3
|
|
(34.7) %
|
|
|
38.9
|
|
|
49.0
|
|
(20.6) %
|
Total Gross
Profit
|
$
|
1,006.9
|
|
$
|
1,010.9
|
|
(0.4) %
|
|
$
|
3,117.6
|
|
$
|
2,851.2
|
|
9.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Revenue Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
53,890
|
|
$
|
51,273
|
|
5.1 %
|
|
$
|
53,780
|
|
$
|
49,209
|
|
9.3 %
|
Used
Vehicles
|
|
33,711
|
|
|
32,680
|
|
3.2 %
|
|
|
34,452
|
|
|
31,312
|
|
10.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Gross
Profit Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
6,678
|
|
$
|
5,948
|
|
12.3 %
|
|
$
|
6,793
|
|
$
|
4,886
|
|
39.0 %
|
Used
Vehicles
|
|
2,004
|
|
|
2,743
|
|
(26.9) %
|
|
|
2,171
|
|
|
2,416
|
|
(10.1) %
|
Finance and
Insurance
|
|
1,892
|
|
|
1,765
|
|
7.2 %
|
|
|
1,907
|
|
|
1,630
|
|
17.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Gross
Margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
12.4 %
|
|
|
11.6 %
|
|
+80bps
|
|
|
12.6 %
|
|
|
9.9 %
|
|
+270bps
|
Used
Vehicles
|
|
5.9 %
|
|
|
8.4 %
|
|
(250)bps
|
|
|
6.3 %
|
|
|
7.7 %
|
|
(140)bps
|
Service and
Parts
|
|
58.9 %
|
|
|
60.1 %
|
|
(120)bps
|
|
|
59.6 %
|
|
|
60.8 %
|
|
(120)bps
|
Fleet and
Wholesale
|
|
3.4 %
|
|
|
5.8 %
|
|
(240)bps
|
|
|
3.7 %
|
|
|
5.4 %
|
|
(170)bps
|
Total Gross
Margin
|
|
17.5 %
|
|
|
17.9 %
|
|
(40)bps
|
|
|
17.5 %
|
|
|
16.7 %
|
|
+80bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Revenue Mix Percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
41.6 %
|
|
|
40.4 %
|
|
+120bps
|
|
|
41.0 %
|
|
|
44.1 %
|
|
(310)bps
|
Used
Vehicles
|
|
38.4 %
|
|
|
40.9 %
|
|
(250)bps
|
|
|
39.5 %
|
|
|
37.8 %
|
|
+170bps
|
Finance and Insurance,
Net
|
|
3.6 %
|
|
|
3.6 %
|
|
—bps
|
|
|
3.6 %
|
|
|
3.4 %
|
|
+20bps
|
Service and
Parts
|
|
10.6 %
|
|
|
9.9 %
|
|
+70bps
|
|
|
10.1 %
|
|
|
9.4 %
|
|
+70bps
|
Fleet and
Wholesale
|
|
5.8 %
|
|
|
5.2 %
|
|
+60bps
|
|
|
5.8 %
|
|
|
5.3 %
|
|
+50bps
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Gross
Profit Mix Percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
29.5 %
|
|
|
26.1 %
|
|
+340bps
|
|
|
29.5 %
|
|
|
26.2 %
|
|
+330bps
|
Used
Vehicles
|
|
13.0 %
|
|
|
19.1 %
|
|
(610)bps
|
|
|
14.2 %
|
|
|
17.4 %
|
|
(320)bps
|
Finance and Insurance,
Net
|
|
20.7 %
|
|
|
20.1 %
|
|
+60bps
|
|
|
20.7 %
|
|
|
20.5 %
|
|
+20bps
|
Service and
Parts
|
|
35.7 %
|
|
|
33.0 %
|
|
+270bps
|
|
|
34.3 %
|
|
|
34.2 %
|
|
+10bps
|
Fleet and
Wholesale
|
|
1.1 %
|
|
|
1.7 %
|
|
(60)bps
|
|
|
1.3 %
|
|
|
1.7 %
|
|
(40)bps
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
100.0 %
|
|
|
100.0 %
|
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
Retail Automotive
Operations Same-Store
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
Retail Automotive
Same-Store Units:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Retail
|
|
41,542
|
|
|
44,372
|
|
(6.4) %
|
|
|
127,950
|
|
|
152,051
|
|
(15.9) %
|
Used Retail
|
|
62,395
|
|
|
70,047
|
|
(10.9) %
|
|
|
193,597
|
|
|
203,791
|
|
(5.0) %
|
Total
|
|
103,937
|
|
|
114,419
|
|
(9.2) %
|
|
|
321,547
|
|
|
355,842
|
|
(9.6) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Revenue: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
2,245.8
|
|
$
|
2,274.8
|
|
(1.3) %
|
|
$
|
6,860.1
|
|
$
|
7,464.4
|
|
(8.1) %
|
Used
Vehicles
|
|
2,112.9
|
|
|
2,293.7
|
|
(7.9) %
|
|
|
6,691.7
|
|
|
6,379.9
|
|
4.9 %
|
Finance and Insurance,
Net
|
|
199.8
|
|
|
202.3
|
|
(1.2) %
|
|
|
621.9
|
|
|
579.5
|
|
7.3 %
|
Service and
Parts
|
|
577.2
|
|
|
554.4
|
|
4.1 %
|
|
|
1,704.1
|
|
|
1,593.4
|
|
6.9 %
|
Fleet and
Wholesale
|
|
315.9
|
|
|
299.1
|
|
5.6 %
|
|
|
971.1
|
|
|
899.9
|
|
7.9 %
|
Total
Revenue
|
$
|
5,451.6
|
|
$
|
5,624.3
|
|
(3.1) %
|
|
$
|
16,848.9
|
|
$
|
16,917.1
|
|
(0.4) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Gross Profit: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
279.6
|
|
$
|
263.9
|
|
5.9 %
|
|
$
|
865.1
|
|
$
|
740.2
|
|
16.9 %
|
Used
Vehicles
|
|
126.5
|
|
|
192.8
|
|
(34.4) %
|
|
|
423.4
|
|
|
492.2
|
|
(14.0) %
|
Finance and Insurance,
Net
|
|
199.8
|
|
|
202.3
|
|
(1.2) %
|
|
|
621.9
|
|
|
579.5
|
|
7.3 %
|
Service and
Parts
|
|
342.4
|
|
|
333.2
|
|
2.8 %
|
|
|
1,019.8
|
|
|
968.4
|
|
5.3 %
|
Fleet and
Wholesale
|
|
10.2
|
|
|
17.4
|
|
(41.4) %
|
|
|
35.3
|
|
|
48.8
|
|
(27.7) %
|
Total Gross
Profit
|
$
|
958.5
|
|
$
|
1,009.6
|
|
(5.1) %
|
|
$
|
2,965.5
|
|
$
|
2,829.1
|
|
4.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Revenue Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
54,061
|
|
$
|
51,267
|
|
5.4 %
|
|
$
|
53,615
|
|
$
|
49,091
|
|
9.2 %
|
Used
Vehicles
|
|
33,864
|
|
|
32,745
|
|
3.4 %
|
|
|
34,565
|
|
|
31,306
|
|
10.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Gross Profit Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
6,730
|
|
$
|
5,948
|
|
13.1 %
|
|
$
|
6,761
|
|
$
|
4,868
|
|
38.9 %
|
Used
Vehicles
|
|
2,028
|
|
|
2,752
|
|
(26.3) %
|
|
|
2,187
|
|
|
2,415
|
|
(9.4) %
|
Finance and
Insurance
|
|
1,922
|
|
|
1,768
|
|
8.7 %
|
|
|
1,934
|
|
|
1,629
|
|
18.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Gross Margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
12.4 %
|
|
|
11.6 %
|
|
+80bps
|
|
|
12.6 %
|
|
|
9.9 %
|
|
+270bps
|
Used
Vehicles
|
|
6.0 %
|
|
|
8.4 %
|
|
(240)bps
|
|
|
6.3 %
|
|
|
7.7 %
|
|
(140)bps
|
Service and
Parts
|
|
59.3 %
|
|
|
60.1 %
|
|
(80)bps
|
|
|
59.8 %
|
|
|
60.8 %
|
|
(100)bps
|
Fleet and
Wholesale
|
|
3.2 %
|
|
|
5.8 %
|
|
(260)bps
|
|
|
3.6 %
|
|
|
5.4 %
|
|
(180)bps
|
Total Gross
Margin
|
|
17.6 %
|
|
|
18.0 %
|
|
(40)bps
|
|
|
17.6 %
|
|
|
16.7 %
|
|
+90bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Revenue Mix Percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
41.2 %
|
|
|
40.4 %
|
|
+80bps
|
|
|
40.7 %
|
|
|
44.1 %
|
|
(340)bps
|
Used
Vehicles
|
|
38.8 %
|
|
|
40.8 %
|
|
(200)bps
|
|
|
39.7 %
|
|
|
37.7 %
|
|
+200bps
|
Finance and Insurance,
Net
|
|
3.7 %
|
|
|
3.6 %
|
|
+10bps
|
|
|
3.7 %
|
|
|
3.4 %
|
|
+30bps
|
Service and
Parts
|
|
10.6 %
|
|
|
9.9 %
|
|
+70bps
|
|
|
10.1 %
|
|
|
9.4 %
|
|
+70bps
|
Fleet and
Wholesale
|
|
5.7 %
|
|
|
5.3 %
|
|
+40bps
|
|
|
5.8 %
|
|
|
5.4 %
|
|
+40bps
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Gross Profit Mix Percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
29.2 %
|
|
|
26.1 %
|
|
+310bps
|
|
|
29.2 %
|
|
|
26.2 %
|
|
+300bps
|
Used
Vehicles
|
|
13.2 %
|
|
|
19.1 %
|
|
(590)bps
|
|
|
14.3 %
|
|
|
17.4 %
|
|
(310)bps
|
Finance and Insurance,
Net
|
|
20.8 %
|
|
|
20.0 %
|
|
+80bps
|
|
|
21.0 %
|
|
|
20.5 %
|
|
+50bps
|
Service and
Parts
|
|
35.7 %
|
|
|
33.0 %
|
|
+270bps
|
|
|
34.4 %
|
|
|
34.2 %
|
|
+20bps
|
Fleet and
Wholesale
|
|
1.1 %
|
|
|
1.8 %
|
|
(70)bps
|
|
|
1.1 %
|
|
|
1.7 %
|
|
(60)bps
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
100.0 %
|
|
|
100.0 %
|
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
Retail Commercial Truck
Operations
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
Retail Commercial Truck
Units:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Retail
|
|
5,365
|
|
|
3,892
|
|
37.8 %
|
|
|
12,751
|
|
|
9,371
|
|
36.1 %
|
Used Retail
|
|
666
|
|
|
928
|
|
(28.2) %
|
|
|
2,146
|
|
|
2,601
|
|
(17.5) %
|
Total
|
|
6,031
|
|
|
4,820
|
|
25.1 %
|
|
|
14,897
|
|
|
11,972
|
|
24.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Revenue: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
704.8
|
|
$
|
464.1
|
|
51.9 %
|
|
$
|
1,623.8
|
|
$
|
1,110.8
|
|
46.2 %
|
Used
Vehicles
|
|
74.2
|
|
|
81.2
|
|
(8.6) %
|
|
|
253.2
|
|
|
191.2
|
|
32.4 %
|
Finance and Insurance,
Net
|
|
5.5
|
|
|
4.8
|
|
14.6 %
|
|
|
16.4
|
|
|
11.7
|
|
40.2 %
|
Service and
Parts
|
|
223.9
|
|
|
160.9
|
|
39.2 %
|
|
|
640.5
|
|
|
442.8
|
|
44.6 %
|
Wholesale and
Other
|
|
11.1
|
|
|
6.3
|
|
76.2 %
|
|
|
46.6
|
|
|
20.8
|
|
124.0 %
|
Total
Revenue
|
$
|
1,019.5
|
|
$
|
717.3
|
|
42.1 %
|
|
$
|
2,580.5
|
|
$
|
1,777.3
|
|
45.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Gross Profit: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
36.4
|
|
$
|
22.2
|
|
64.0 %
|
|
$
|
91.9
|
|
$
|
56.0
|
|
64.1 %
|
Used
Vehicles
|
|
(4.3)
|
|
|
16.5
|
|
(126.1) %
|
|
|
17.5
|
|
|
32.4
|
|
(46.0) %
|
Finance and Insurance,
Net
|
|
5.5
|
|
|
4.8
|
|
14.6 %
|
|
|
16.4
|
|
|
11.7
|
|
40.2 %
|
Service and
Parts
|
|
95.3
|
|
|
67.8
|
|
40.6 %
|
|
|
271.4
|
|
|
186.8
|
|
45.3 %
|
Wholesale and
Other
|
|
6.8
|
|
|
4.0
|
|
70.0 %
|
|
|
19.7
|
|
|
11.1
|
|
77.5 %
|
Total Gross
Profit
|
$
|
139.7
|
|
$
|
115.3
|
|
21.2 %
|
|
$
|
416.9
|
|
$
|
298.0
|
|
39.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Revenue Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
131,361
|
|
$
|
119,243
|
|
10.2 %
|
|
$
|
127,341
|
|
$
|
118,532
|
|
7.4 %
|
Used
Vehicles
|
|
111,451
|
|
|
87,552
|
|
27.3 %
|
|
|
118,011
|
|
|
73,515
|
|
60.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Gross Profit Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
6,787
|
|
$
|
5,700
|
|
19.1 %
|
|
$
|
7,204
|
|
$
|
5,978
|
|
20.5 %
|
Used
Vehicles
|
|
(6,396)
|
|
|
17,762
|
|
(136.0) %
|
|
|
8,147
|
|
|
12,459
|
|
(34.6) %
|
Finance and
Insurance
|
|
905
|
|
|
1,006
|
|
(10.0) %
|
|
|
1,098
|
|
|
985
|
|
11.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Gross Margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
5.2 %
|
|
|
4.8 %
|
|
+40bps
|
|
|
5.7 %
|
|
|
5.0 %
|
|
+70bps
|
Used
Vehicles
|
|
(5.8) %
|
|
|
20.3 %
|
|
(2,610)bps
|
|
|
6.9 %
|
|
|
16.9 %
|
|
(1,000)bps
|
Service and
Parts
|
|
42.6 %
|
|
|
42.1 %
|
|
+50bps
|
|
|
42.4 %
|
|
|
42.2 %
|
|
+20bps
|
Wholesale and
Other
|
|
61.3 %
|
|
|
63.5 %
|
|
(220)bps
|
|
|
42.3 %
|
|
|
53.4 %
|
|
(1,110)bps
|
Total Gross
Margin
|
|
13.7 %
|
|
|
16.1 %
|
|
(240)bps
|
|
|
16.2 %
|
|
|
16.8 %
|
|
(60)bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Revenue Mix Percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
69.1 %
|
|
|
64.7 %
|
|
+440bps
|
|
|
62.9 %
|
|
|
62.5 %
|
|
+40bps
|
Used
Vehicles
|
|
7.3 %
|
|
|
11.3 %
|
|
(400)bps
|
|
|
9.8 %
|
|
|
10.8 %
|
|
(100)bps
|
Finance and Insurance,
Net
|
|
0.5 %
|
|
|
0.7 %
|
|
(20)bps
|
|
|
0.6 %
|
|
|
0.7 %
|
|
(10)bps
|
Service and
Parts
|
|
22.0 %
|
|
|
22.4 %
|
|
(40)bps
|
|
|
24.8 %
|
|
|
24.9 %
|
|
(10)bps
|
Wholesale and
Other
|
|
1.1 %
|
|
|
0.9 %
|
|
+20bps
|
|
|
1.9 %
|
|
|
1.1 %
|
|
+80bps
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Gross Profit Mix Percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
26.1 %
|
|
|
19.3 %
|
|
+680bps
|
|
|
22.0 %
|
|
|
18.8 %
|
|
+320bps
|
Used
Vehicles
|
|
(3.1) %
|
|
|
14.3 %
|
|
(1,740)bps
|
|
|
4.2 %
|
|
|
10.9 %
|
|
(670)bps
|
Finance and Insurance,
Net
|
|
3.9 %
|
|
|
4.2 %
|
|
(30)bps
|
|
|
3.9 %
|
|
|
3.9 %
|
|
—bps
|
Service and
Parts
|
|
68.2 %
|
|
|
58.8 %
|
|
+940bps
|
|
|
65.1 %
|
|
|
62.7 %
|
|
+240bps
|
Wholesale and
Other
|
|
4.9 %
|
|
|
3.4 %
|
|
+150bps
|
|
|
4.8 %
|
|
|
3.7 %
|
|
+110bps
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
100.0 %
|
|
|
100.0 %
|
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
Retail Commercial Truck
Operations Same-Store
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
Retail Commercial Truck
Same-Store Units:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Retail
|
|
4,881
|
|
|
3,892
|
|
25.4 %
|
|
|
10,018
|
|
|
8,013
|
|
25.0 %
|
Used Retail
|
|
592
|
|
|
928
|
|
(36.2) %
|
|
|
1,679
|
|
|
2,487
|
|
(32.5) %
|
Total
|
|
5,473
|
|
|
4,820
|
|
13.5 %
|
|
|
11,697
|
|
|
10,500
|
|
11.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Revenue: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
645.3
|
|
$
|
464.1
|
|
39.0 %
|
|
$
|
1,275.1
|
|
$
|
969.7
|
|
31.5 %
|
Used
Vehicles
|
|
64.7
|
|
|
81.2
|
|
(20.3) %
|
|
|
198.9
|
|
|
182.7
|
|
8.9 %
|
Finance and Insurance,
Net
|
|
4.9
|
|
|
4.8
|
|
2.1 %
|
|
|
13.6
|
|
|
11.5
|
|
18.3 %
|
Service and
Parts
|
|
197.1
|
|
|
160.6
|
|
22.7 %
|
|
|
493.1
|
|
|
398.3
|
|
23.8 %
|
Wholesale and
Other
|
|
10.5
|
|
|
6.3
|
|
66.7 %
|
|
|
42.1
|
|
|
20.6
|
|
104.4 %
|
Total
Revenue
|
$
|
922.5
|
|
$
|
717.0
|
|
28.7 %
|
|
$
|
2,022.8
|
|
$
|
1,582.8
|
|
27.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Gross Profit: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
31.7
|
|
$
|
22.2
|
|
42.8 %
|
|
$
|
73.8
|
|
$
|
52.0
|
|
41.9 %
|
Used
Vehicles
|
|
(4.5)
|
|
|
16.5
|
|
(127.3) %
|
|
|
13.1
|
|
|
30.8
|
|
(57.5) %
|
Finance and Insurance,
Net
|
|
4.9
|
|
|
4.8
|
|
2.1 %
|
|
|
13.6
|
|
|
11.5
|
|
18.3 %
|
Service and
Parts
|
|
84.5
|
|
|
67.7
|
|
24.8 %
|
|
|
210.2
|
|
|
169.1
|
|
24.3 %
|
Wholesale and
Other
|
|
6.8
|
|
|
3.9
|
|
74.4 %
|
|
|
19.5
|
|
|
10.9
|
|
78.9 %
|
Total Gross
Profit
|
$
|
123.4
|
|
$
|
115.1
|
|
7.2 %
|
|
$
|
330.2
|
|
$
|
274.3
|
|
20.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Revenue Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
132,206
|
|
$
|
119,243
|
|
10.9 %
|
|
$
|
127,281
|
|
$
|
121,018
|
|
5.2 %
|
Used
Vehicles
|
|
109,239
|
|
|
87,552
|
|
24.8 %
|
|
|
118,482
|
|
|
73,444
|
|
61.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Gross Profit Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
6,485
|
|
$
|
5,700
|
|
13.8 %
|
|
$
|
7,369
|
|
$
|
6,493
|
|
13.5 %
|
Used
Vehicles
|
|
(7,638)
|
|
|
17,762
|
|
(143.0) %
|
|
|
7,813
|
|
|
12,392
|
|
(37.0) %
|
Finance and
Insurance
|
|
903
|
|
|
1,006
|
|
(10.2) %
|
|
|
1,164
|
|
|
1,094
|
|
6.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Gross Margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
4.9 %
|
|
|
4.8 %
|
|
+10bps
|
|
|
5.8 %
|
|
|
5.4 %
|
|
+40bps
|
Used
Vehicles
|
|
(7.0) %
|
|
|
20.3 %
|
|
(2,730)bps
|
|
|
6.6 %
|
|
|
16.9 %
|
|
(1,030)bps
|
Service and
Parts
|
|
42.9 %
|
|
|
42.2 %
|
|
+70bps
|
|
|
42.6 %
|
|
|
42.5 %
|
|
+10bps
|
Wholesale and
Other
|
|
64.8 %
|
|
|
61.9 %
|
|
+290bps
|
|
|
46.3 %
|
|
|
52.9 %
|
|
(660)bps
|
Total Gross
Margin
|
|
13.4 %
|
|
|
16.1 %
|
|
(270)bps
|
|
|
16.3 %
|
|
|
17.3 %
|
|
(100)bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Revenue Mix Percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
70.0 %
|
|
|
64.7 %
|
|
+530bps
|
|
|
63.0 %
|
|
|
61.3 %
|
|
+170bps
|
Used
Vehicles
|
|
7.0 %
|
|
|
11.3 %
|
|
(430)bps
|
|
|
9.8 %
|
|
|
11.5 %
|
|
(170)bps
|
Finance and Insurance,
Net
|
|
0.5 %
|
|
|
0.7 %
|
|
(20)bps
|
|
|
0.7 %
|
|
|
0.7 %
|
|
—bps
|
Service and
Parts
|
|
21.4 %
|
|
|
22.4 %
|
|
(100)bps
|
|
|
24.4 %
|
|
|
25.2 %
|
|
(80)bps
|
Wholesale and
Other
|
|
1.1 %
|
|
|
0.9 %
|
|
+20bps
|
|
|
2.1 %
|
|
|
1.3 %
|
|
+80bps
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Gross Profit Mix Percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
25.7 %
|
|
|
19.3 %
|
|
+640bps
|
|
|
22.4 %
|
|
|
19.0 %
|
|
+340bps
|
Used
Vehicles
|
|
(3.6) %
|
|
|
14.3 %
|
|
(1,790)bps
|
|
|
4.0 %
|
|
|
11.2 %
|
|
(720)bps
|
Finance and Insurance,
Net
|
|
4.0 %
|
|
|
4.2 %
|
|
(20)bps
|
|
|
4.1 %
|
|
|
4.2 %
|
|
(10)bps
|
Service and
Parts
|
|
68.5 %
|
|
|
58.8 %
|
|
+970bps
|
|
|
63.7 %
|
|
|
61.6 %
|
|
+210bps
|
Wholesale and
Other
|
|
5.4 %
|
|
|
3.4 %
|
|
+200bps
|
|
|
5.8 %
|
|
|
4.0 %
|
|
+180bps
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
100.0 %
|
|
|
100.0 %
|
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
Supplemental
Data
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
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 %
|
|
7 %
|
|
7 %
|
|
9 %
|
Porsche
|
7 %
|
|
7 %
|
|
7 %
|
|
7 %
|
Ferrari /
Maserati
|
3 %
|
|
3 %
|
|
3 %
|
|
2 %
|
Lexus
|
3 %
|
|
3 %
|
|
3 %
|
|
3 %
|
Acura
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
Bentley
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
Others
|
2 %
|
|
2 %
|
|
2 %
|
|
2 %
|
Total
Premium
|
70 %
|
|
69 %
|
|
70 %
|
|
70 %
|
Volume
Non-U.S.:
|
|
|
|
|
|
|
|
Toyota
|
11 %
|
|
12 %
|
|
11 %
|
|
12 %
|
Honda
|
5 %
|
|
6 %
|
|
5 %
|
|
6 %
|
Volkswagen
|
2 %
|
|
2 %
|
|
2 %
|
|
2 %
|
Hyundai
|
2 %
|
|
1 %
|
|
1 %
|
|
1 %
|
Others
|
2 %
|
|
1 %
|
|
2 %
|
|
2 %
|
Total Volume
Non-U.S.
|
22 %
|
|
22 %
|
|
21 %
|
|
23 %
|
U.S.:
|
|
|
|
|
|
|
|
General Motors /
Chrysler
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
CarShop Used
Vehicle Centers
|
7 %
|
|
8 %
|
|
8 %
|
|
6 %
|
Total
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
Capital Expenditures
/ Stock Repurchases:
|
2022
|
|
2021
|
|
2022
|
|
2021
|
(Amounts in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
|
57.6
|
|
$
|
|
66.7
|
|
$
|
|
195.7
|
|
$
|
|
157.5
|
Cash paid for
acquisitions, net of cash acquired
|
$
|
|
167.5
|
|
$
|
|
—
|
|
$
|
|
393.4
|
|
$
|
|
278.0
|
Stock
repurchases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate purchase
price
|
$
|
|
309.4
|
|
$
|
|
178.9
|
|
$
|
|
602.0
|
|
$
|
|
219.8
|
Shares
repurchased
|
|
|
2.8
|
|
|
|
2.0
|
|
|
|
5.7
|
|
|
|
2.5
|
Balance Sheet and
Other Highlights:
|
September 30,
2022
|
|
December 31,
2021
|
(Amounts in
Millions)
|
|
|
|
|
|
Cash and Cash
Equivalents
|
$
|
92.3
|
|
$
|
100.7
|
Inventories
|
$
|
3,146.9
|
|
$
|
3,129.0
|
Total Floor Plan Notes
Payable
|
$
|
2,596.2
|
|
$
|
2,554.7
|
Total Long-Term
Debt
|
$
|
1,637.9
|
|
$
|
1,474.0
|
Equity
|
$
|
4,088.0
|
|
$
|
4,095.0
|
|
|
|
|
|
|
Debt to Total
Capitalization Ratio
|
|
28.6 %
|
|
|
26.4 %
|
Leverage Ratio
(1)
|
|
0.8 x
|
|
|
0.8 x
|
New vehicle days'
supply
|
|
23 days
|
|
|
17 days
|
Used vehicle days'
supply
|
|
44 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 nine
months ended September 30, 2022, and 2021:
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
(Amounts in
Millions)
|
September
30,
|
|
September
30,
|
|
2022
|
|
2021
|
|
%
Change
|
|
2022
|
|
2021
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Continuing
Operations
|
$
|
340.1
|
|
$
|
354.8
|
|
(4.1) %
|
|
$
|
1,082.0
|
|
$
|
876.1
|
|
23.5 %
|
Tax legislation
changes (1)
|
|
—
|
|
|
—
|
|
nm
|
|
|
—
|
|
|
8.8
|
|
nm
|
Debt redemption
costs (2)
|
|
—
|
|
|
—
|
|
nm
|
|
|
—
|
|
|
12.6
|
|
nm
|
Adjusted Income from
Continuing Operations
|
$
|
340.1
|
|
$
|
354.8
|
|
(4.1) %
|
|
$
|
1,082.0
|
|
$
|
897.5
|
|
20.6 %
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2022
|
|
2021
|
|
%
Change
|
|
2022
|
|
2021
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share from
Continuing Operations
|
$
|
4.61
|
|
$
|
4.46
|
|
3.4 %
|
|
$
|
14.31
|
|
$
|
10.91
|
|
31.2 %
|
Tax legislation
changes (1)
|
|
—
|
|
|
—
|
|
nm
|
|
|
—
|
|
|
0.11
|
|
nm
|
Debt redemption
costs (2)
|
|
—
|
|
|
—
|
|
nm
|
|
|
—
|
|
|
0.16
|
|
nm
|
Adjusted Earnings Per
Share from Continuing Operations
|
$
|
4.61
|
|
$
|
4.46
|
|
3.4 %
|
|
$
|
14.31
|
|
$
|
11.18
|
|
28.0 %
|
The following table
reconciles income from continuing operations before taxes (EBT) to
adjusted income from
continuing operations before taxes (EBT) for the three and nine
months ending September 30, 2022, and 2021:
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
(Amounts in
Millions)
|
September
30,
|
|
September
30,
|
|
2022
|
|
2021
|
|
%
Change
|
|
2022
|
|
2021
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Continuing
Operations Before Taxes
|
$
|
467.2
|
|
$
|
476.1
|
|
(1.9) %
|
|
$
|
1,464.4
|
|
$
|
1,187.4
|
|
23.3 %
|
Debt redemption
costs (2)
|
|
—
|
|
|
—
|
|
nm
|
|
|
—
|
|
|
17.0
|
|
nm
|
Adjusted Income from
Continuing Operations Before Taxes
|
$
|
467.2
|
|
$
|
476.1
|
|
(1.9) %
|
|
$
|
1,464.4
|
|
$
|
1,204.4
|
|
21.6 %
|
|
(1) For the nine
months ended September 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 nine months ended
September 30, 2022 and 2021:
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
September
30,
|
|
2022 vs.
2021
|
(Amounts in Millions)
|
2022
|
|
2021
|
|
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
$
|
341.5
|
|
$
|
356.3
|
|
$
|
(14.8)
|
|
(4.2) %
|
Add:
Depreciation
|
|
31.5
|
|
|
30.2
|
|
|
1.3
|
|
4.3 %
|
Other Interest
Expense
|
|
17.9
|
|
|
16.2
|
|
|
1.7
|
|
10.5 %
|
Income
Taxes
|
|
125.7
|
|
|
120.1
|
|
|
5.6
|
|
4.7 %
|
Income from
Discontinued Operations, net of tax
|
|
—
|
|
|
(0.3)
|
|
|
0.3
|
|
nm
|
EBITDA
|
$
|
516.6
|
|
$
|
522.5
|
|
$
|
(5.9)
|
|
(1.1) %
|
Add: Debt redemption
costs (2)
|
|
—
|
|
|
—
|
|
|
—
|
|
nm
|
Adjusted
EBITDA
|
$
|
516.6
|
|
$
|
522.5
|
|
$
|
(5.9)
|
|
(1.1) %
|
|
Nine Months
Ended
|
|
|
|
|
|
|
September
30,
|
|
2022 vs.
2021
|
(Amounts in Millions)
|
2022
|
|
2021
|
|
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
$
|
1,086.9
|
|
$
|
879.8
|
|
$
|
207.1
|
|
23.5 %
|
Add:
Depreciation
|
|
95.1
|
|
|
89.7
|
|
|
5.4
|
|
6.0 %
|
Other Interest
Expense
|
|
51.4
|
|
|
53.8
|
|
|
(2.4)
|
|
(4.5) %
|
Income
Taxes
|
|
377.5
|
|
|
308.0
|
|
|
69.5
|
|
22.6 %
|
Income from
Discontinued Operations, net of tax
|
|
—
|
|
|
(0.4)
|
|
|
0.4
|
|
nm
|
EBITDA
|
$
|
1,610.9
|
|
$
|
1,330.9
|
|
$
|
280.0
|
|
21.0 %
|
Add: Debt redemption
costs (2)
|
|
—
|
|
|
17.0
|
|
|
(17.0)
|
|
nm
|
Adjusted
EBITDA
|
$
|
1,610.9
|
|
$
|
1,347.9
|
|
$
|
263.0
|
|
19.5 %
|
|
nm – not
meaningful
|
The following table
reconciles the leverage ratio as of September 30, 2022, and
December 31, 2021:
|
|
|
Three
|
|
Nine
|
|
Trailing
Twelve
|
|
Twelve
|
|
Months
Ended
|
|
Months
Ended
|
|
Months
Ended
|
|
Months
Ended
|
(Amounts in Millions)
|
December 31,
2021
|
|
September 30,
2022
|
|
September 30,
2022
|
|
December 31,
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
$
312.9
|
|
$
1,086.9
|
|
$
1,399.8
|
|
$
1,192.7
|
Add:
Depreciation
|
|
31.8
|
|
|
95.1
|
|
|
126.9
|
|
|
121.5
|
Other Interest
Expense
|
|
14.8
|
|
|
51.4
|
|
|
66.2
|
|
|
68.6
|
Income
Taxes
|
|
108.3
|
|
|
377.5
|
|
|
485.8
|
|
|
416.3
|
Income from
Discontinued Operations, net of tax
|
|
(0.9)
|
|
|
—
|
|
|
(0.9)
|
|
|
(1.3)
|
EBITDA
|
$
466.9
|
|
$
1,610.9
|
|
$
2,077.8
|
|
$
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
|
$
478.3
|
|
$
1,610.9
|
|
$
2,089.2
|
|
$
1,826.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-Vehicle
Long-Term Debt
|
|
|
|
|
|
|
$
1,637.9
|
|
$
1,474.0
|
Leverage
Ratio
|
|
|
|
|
|
|
|
0.8
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.