BLOOMFIELD HILLS, Mich., Feb. 17,
2023 /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 that its Board of Directors
delegated to management $250 million
in authority to repurchase the Company's outstanding
securities. This repurchase authority is in addition to
previously announced repurchase authority, of which $3.6 million remained outstanding as of
February 7, 2023. The authority
has no expiration. In 2022, the Company repurchased 8.2
million shares of its common stock, representing approximately
10.6% of the Company's shares outstanding at the beginning of 2022,
for an aggregate purchase price of $886.5
million. From January 1,
2023, through February 7, 2023, the Company repurchased
0.6 million shares for an aggregate purchase price of $70.7 million.
Under the securities repurchase program, the Company may, as
market conditions warrant, purchase its outstanding common stock or
debt on the open market, in privately negotiated transactions, via
a tender offer, through a pre-arranged trading plan, pursuant to
the terms of an accelerated share repurchase program, or by other
means. The decision to make repurchases will be based on factors
such as general economic and industry conditions, the market price
of the relevant security versus the Company's view of its intrinsic
value, the potential impact of such repurchases on the Company's
capital structure, and the Company's consideration of any
alternative uses of its capital, such as for acquisitions, the
repayment of existing indebtedness, and strategic investments in
its current businesses, in addition to any then-existing limits
imposed by the Company's finance agreements and securities trading
policy. The program does not require the Company to
repurchase any specific number of securities, and may be modified,
suspended or terminated at any time without further notice.
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 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. PAG employs over 26,500 people worldwide.
Additionally, PAG owns 28.9% of Penske Transportation Solutions
("PTS"), a business that employs over 41,500 people worldwide,
manages one of the largest, most comprehensive and modern trucking
fleets in North America with over
414,500 trucks, tractors, and trailers under lease, rental, and/or
maintenance contracts and provides innovative transportation,
supply chain, and technology solutions to its customers. PAG is a
member of the Fortune 500, Russell 1000, and Russell 3000 indexes.
For additional information, visit the Company's website at
www.penskeautomotive.com.
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 and future 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
macro-economic, geo-political and industry conditions and events,
including their impact on new and used vehicle sales, the
availability of consumer credit, changes in consumer demand,
consumer confidence levels, fuel prices, personal discretionary
spending levels, interest rates, and unemployment rates; our
ability to obtain vehicles and parts from our manufacturers,
especially in light of supply chain disruptions due to natural
disasters, the shortage of microchips or other components, the
COVID-19 pandemic, the war in Ukraine, challenges in sourcing labor, or
other disruptions; 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; the continued effect of COVID-19 on the global economy,
including 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; with respect to PTS,
changes in the financial health of its customers, labor strikes or
work stoppages by its employees, a reduction in PTS' asset
utilization rates, continued availability from truck manufacturers
and suppliers of vehicles and parts for its fleet, changes in
values of used trucks which affects PTS' profitability on truck
sales and regulatory risks and related compliance costs; 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 in both our domestic and
international markets relating to automotive dealerships and
vehicles sales, including those related to emissions standards, as
well as changes in consumer sentiment relating to commercial truck
sales that may hinder our or PTS' ability to maintain, acquire,
sell, or operate trucks; 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; 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, risks, and other
uncertainties, which could affect Penske Automotive Group's future
performance. The risks and uncertainties discussed above are not
exhaustive and additional risk 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, June 30, 2022, and September 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:
|
|
|
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Shelley
Hulgrave
|
Anthony
Pordon
|
Executive Vice
President and
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Executive Vice
President Investor Relations
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Chief Financial
Officer
|
and Corporate
Development
|
Penske Automotive
Group, Inc.
|
Penske Automotive
Group, Inc.
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248-648-2812
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248-648-2540
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shulgrave@penskeautomotive.com
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tpordon@penskeautomotive.com
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SOURCE Penske Automotive Group, Inc.