Q1 2023 Record Revenue Increased 5% to
$7.3 Billion
Same-Store Service & Parts Revenue
Increased 10% in Retail Automotive and 11% in Retail Commercial
Trucks
Selling, General and Administrative Expenses
as a Percent of Gross Profit Improved Sequentially by 140 Basis
Points
Net Income of $298
Million; Earnings Per Share of $4.31
Repurchased 0.9 Million Shares of Common Stock
for $110.2 Million
BLOOMFIELD HILLS, Mich., April 26, 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 quarterly results for the first quarter of 2023. For the
quarter, revenue increased 5% to $7.3
billion, a quarterly record. Net income attributable to
common stockholders decreased 19% to $298.3
million from $367.9 million,
and related earnings per share decreased 9% to $4.31 from $4.76
when compared to the same period last year. Foreign currency
exchange negatively impacted revenue by $294.2 million, net income attributable to common
stockholders by $8.0 million, and
earnings per share by $0.11.
Excluding the impact from foreign currency exchange, revenue
increased 9%, net income attributable to common stockholders
decreased 17%, and earnings per share decreased approximately
7%.
First Quarter 2023 Operating Highlights Compared to First
Quarter 2022
(Percentage Change Excluding Foreign Currency Exchange Shown
in Parenthesis)
- Retail Automotive Same-Store Revenue – increased 2%
(+6%)
-
- New Vehicle +9% (+12%); Used Vehicle -7% (-2%);
Finance & Insurance -7% (-3%); Service & Parts +10%
(+14%)
- Retail Automotive Same-Store Gross Profit – decreased 2%
(+2%)
-
- New Vehicle -2% (+2%); Used Vehicle -23% (-19%);
Finance & Insurance -7% (-3%); Service & Parts +9%
(+12%)
- Retail Commercial Truck Same-Store Revenue – increased
10%
-
- New Vehicle +24%; Used Vehicle -51%; Finance & Insurance
-22%; Service & Parts +11%
Commenting on the Company's financial results, Chair and CEO
Roger Penske said, "I am pleased to
report a strong first quarter. Despite higher interest costs,
inventory challenges, and other inflationary cost pressures, our
performance continues to demonstrate the benefits of the Company's
diversification and the strength of its business model. Automotive
retail and commercial truck retail demand for new vehicles remains
strong while same store service & parts revenue increased 14%
from retail automotive operations (excluding changes in foreign
currency exchange) and increased 11% from commercial truck
operations. In addition, I am pleased that strong expense
control produced a ratio of SG&A to gross profit of 67.5%,
including a sequential decline of 140 basis points when comparing
the first quarter of 2023 to the fourth quarter of 2022."
Retail Automotive Dealerships
For the three months ended March 31,
2023, total retail automotive revenue increased 4% to
$6.3 billion. Same-store revenue
increased 2%, including a 10% increase in service and parts
revenue. Total retail automotive gross profit increased 1% to
$1.1 billion, including a 2%
decrease on a same-store basis. Same-store service and parts gross
profit increased 9%. Excluding the impact from foreign
currency exchange, total retail automotive revenue increased 9%
(same-store +6%) and total retail automotive gross profit increased
5% (same-store +2%).
Beginning in the first quarter of 2023, we transitioned certain
brands in the U.K. to an agency model for new vehicle sales under
which these dealerships receive a fee for facilitating the sale of
a new vehicle by the manufacturer. We do not record revenue for the
price of the vehicle. As shown in the following schedules, the
units facilitated under the agency model are shown separately as
Agency units while the fee we received to facilitate the sale is
included in new vehicle gross profit.
Retail Commercial Truck Dealerships
As of March 31, 2023, Premier
Truck Group operated 39 North American retail commercial truck
locations. For the three months ended March
31, 2023, revenue increased 13% to $895.6 million. Same-store revenue increased 10%,
including an 11% increase in service and parts. Earnings before
taxes decreased 2% to $57.1 million
when compared to the same period in 2022.
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 months ended
March 31, 2023, the Company recorded
$80.8 million in earnings compared to
$118.5 million for the same period in
2022 due to higher interest costs, a decrease in rental
utilization, and a decrease in the gain on sales of vehicles.
During the first quarter, PTS continued to expand its managed fleet
with over 419,000 trucks, tractors, and trailers under lease,
rental, and/or maintenance contracts.
Corporate Development and Capital Allocation
During the three months ended March 31,
2023, we repurchased 0.9 million shares of our common stock
for $110.2 million under our
securities repurchase program approved by our Board of Directors.
In February 2023, our Board of
Directors delegated to management an additional $250 million in authority to repurchase our
outstanding securities, of which $214.1
million remained outstanding as of March 31, 2023.
Conference Call
Penske Automotive Group will host a conference call discussing
financial results relating to the first quarter of 2023 on
Wednesday, April 26, 2023, at 2:00 p.m.
Eastern Daylight Time. To listen to the conference call,
participants must dial (877) 336-4441 [International, please
dial (409) 207-6985] using access code 6738360. 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
first quarter 2023 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 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 27,000 people worldwide.
Additionally, PAG owns 28.9% of Penske Transportation Solutions
("PTS"), a business that employs over 43,000 people worldwide,
manages one of the largest, most comprehensive and modern trucking
fleets in North America with over
419,000 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.
Non-GAAP Financial Measures
This release contains certain non-GAAP financial measures as
defined under SEC rules, such as earnings before interest, taxes,
depreciation, and amortization ("EBITDA") and 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 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, 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
|
|
March
31,
|
|
2023
|
|
2022
|
|
Change
|
Revenue
|
$
7,339.0
|
|
$
6,975.4
|
|
5.2 %
|
Cost of
Sales
|
6,086.7
|
|
5,743.7
|
|
6.0 %
|
Gross
Profit
|
$
1,252.3
|
|
$
1,231.7
|
|
1.7 %
|
SG&A
Expenses
|
844.9
|
|
797.8
|
|
5.9 %
|
Depreciation
|
33.9
|
|
31.9
|
|
6.3 %
|
Operating
Income
|
$ 373.5
|
|
$ 402.0
|
|
(7.1) %
|
Floor Plan Interest
Expense
|
(27.9)
|
|
(7.5)
|
|
272.0 %
|
Other Interest
Expense
|
(20.8)
|
|
(16.5)
|
|
26.1 %
|
Equity in Earnings of
Affiliates
|
82.1
|
|
119.6
|
|
(31.4) %
|
Income Before Income
Taxes
|
$ 406.9
|
|
$ 497.6
|
|
(18.2) %
|
Income Taxes
|
(107.3)
|
|
(128.1)
|
|
(16.2) %
|
Net Income
|
$ 299.6
|
|
$ 369.5
|
|
(18.9) %
|
Less: Income
Attributable to Non-Controlling Interests
|
1.3
|
|
1.6
|
|
(18.8) %
|
Net Income
Attributable to Common Stockholders
|
$ 298.3
|
|
$ 367.9
|
|
(18.9) %
|
|
|
|
|
|
|
Amounts Attributable to
Common Stockholders:
|
|
|
|
|
|
Net Income
|
$ 299.6
|
|
$ 369.5
|
|
(18.9) %
|
Less: Income
Attributable to Non-Controlling Interests
|
1.3
|
|
1.6
|
|
(18.8) %
|
Net Income
Attributable to Common Stockholders
|
$ 298.3
|
|
$ 367.9
|
|
(18.9) %
|
Income Per
Share
|
$ 4.31
|
|
$ 4.76
|
|
(9.5) %
|
Weighted Average
Shares Outstanding
|
69.2
|
|
77.2
|
|
(10.4) %
|
|
|
|
|
|
|
nm – not
meaningful
|
|
|
|
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
|
Consolidated Condensed
Balance Sheets
|
(Amounts In
Millions)
|
(Unaudited)
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2023
|
|
2022
|
Assets:
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
100.6
|
|
$
106.5
|
Accounts Receivable,
Net
|
|
|
920.2
|
|
|
906.7
|
Inventories
|
|
|
3,630.4
|
|
|
3,509.1
|
Other Current
Assets
|
|
|
171.7
|
|
|
141.9
|
Total Current
Assets
|
|
|
4,822.9
|
|
|
4,664.2
|
Property and
Equipment, Net
|
|
|
2,566.8
|
|
|
2,496.5
|
Operating Lease
Right-of-Use Assets
|
|
|
2,375.6
|
|
|
2,416.1
|
Intangibles
|
|
|
2,854.8
|
|
|
2,845.6
|
Other Long-Term
Assets
|
|
|
1,775.7
|
|
|
1,692.2
|
Total
Assets
|
|
$
14,395.8
|
|
$
14,114.6
|
|
|
|
|
|
|
|
Liabilities and
Equity:
|
|
|
|
|
|
|
Floor Plan Notes
Payable
|
|
$
1,584.2
|
|
$
1,565.7
|
Floor Plan Notes
Payable – Non-Trade
|
|
|
1,311.9
|
|
|
1,430.6
|
Accounts
Payable
|
|
|
922.2
|
|
|
853.5
|
Accrued Expenses and
Other Current Liabilities
|
|
|
861.1
|
|
|
788.1
|
Current Portion
Long-Term Debt
|
|
|
81.5
|
|
|
75.2
|
Total Current
Liabilities
|
|
|
4,760.9
|
|
|
4,713.1
|
Long-Term
Debt
|
|
|
1,619.8
|
|
|
1,546.9
|
Long-Term Operating
Lease Liabilities
|
|
|
2,302.5
|
|
|
2,335.7
|
Other Long-Term
Liabilities
|
|
|
1,361.2
|
|
|
1,344.1
|
Total
Liabilities
|
|
|
10,044.4
|
|
|
9,939.8
|
Equity
|
|
|
4,351.4
|
|
|
4,174.8
|
Total Liabilities and
Equity
|
|
$
14,395.8
|
|
$
14,114.6
|
PENSKE AUTOMOTIVE
GROUP, INC.
|
Consolidated
Operations
|
Selected
Data
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2023
|
|
2022
|
Geographic Revenue
Mix:
|
|
|
|
North
America
|
58.2 %
|
|
59.3 %
|
U.K.
|
33.7 %
|
|
32.4 %
|
Other
International
|
8.1 %
|
|
8.3 %
|
Total
|
100.0 %
|
|
100.0 %
|
|
|
|
|
Revenue: (Amounts in
Millions)
|
|
|
|
Retail
Automotive
|
$
6,299.8
|
|
$
6,029.2
|
Retail Commercial
Truck
|
895.6
|
|
792.3
|
Commercial Vehicle
Distribution and Other
|
143.6
|
|
153.9
|
Total
|
$
7,339.0
|
|
$
6,975.4
|
|
|
|
|
Gross Profit: (Amounts
in Millions)
|
|
|
|
Retail
Automotive
|
$
1,062.6
|
|
$
1,050.7
|
Retail Commercial
Truck
|
147.0
|
|
141.2
|
Commercial Vehicle
Distribution and Other
|
42.7
|
|
39.8
|
Total
|
$
1,252.3
|
|
$
1,231.7
|
|
|
|
|
Gross
Margin:
|
|
|
|
Retail
Automotive
|
16.9 %
|
|
17.4 %
|
Retail Commercial
Truck
|
16.4 %
|
|
17.8 %
|
Commercial Vehicle
Distribution and Other
|
29.7 %
|
|
25.9 %
|
Total
|
17.1 %
|
|
17.7 %
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2023
|
|
2022
|
Operating Items as a
Percentage of Revenue:
|
|
|
|
Gross
Profit
|
17.1 %
|
|
17.7 %
|
Selling, General and
Administrative Expenses
|
11.5 %
|
|
11.4 %
|
Operating
Income
|
5.1 %
|
|
5.8 %
|
Income Before Income
Taxes
|
5.5 %
|
|
7.1 %
|
|
|
|
|
Operating Items as a
Percentage of Total Gross Profit:
|
|
|
|
Selling, General and
Administrative Expenses
|
67.5 %
|
|
64.8 %
|
Operating
Income
|
29.8 %
|
|
32.6 %
|
|
|
|
Three Months
Ended
|
|
March
31,
|
(Amounts in
Millions)
|
2023
|
|
2022
|
|
|
|
|
|
|
EBITDA(1)
|
$ 461.6
|
|
$ 546.0
|
Floor Plan
Credits
|
$
9.9
|
|
$
9.8
|
Rent Expense
|
$ 61.7
|
|
$ 60.7
|
_______________________
|
|
|
|
|
|
(1)
See the following Non-GAAP reconciliation
table.
|
|
|
|
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
|
Retail Automotive
Operations
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2023
|
|
2022
|
|
Change
|
Retail Automotive
Units:
|
|
|
|
|
|
|
|
New Retail
|
|
47,662
|
|
|
45,528
|
|
4.7 %
|
Used Retail
|
|
67,836
|
|
|
68,231
|
|
(0.6) %
|
Total
Retail
|
|
115,498
|
|
|
113,759
|
|
1.5 %
|
New Agency
|
|
6,933
|
|
|
—
|
|
nm
|
Total Retail and
Agency
|
|
122,431
|
|
|
113,759
|
|
7.6 %
|
|
|
|
|
|
|
|
|
Retail Automotive
Revenue: (Amounts in Millions)
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
2,721.3
|
|
$
|
2,445.5
|
|
11.3 %
|
Used
Vehicles
|
|
2,297.1
|
|
|
2,422.9
|
|
(5.2) %
|
Finance and Insurance,
Net
|
|
206.8
|
|
|
217.3
|
|
(4.8) %
|
Service and
Parts
|
|
683.0
|
|
|
586.2
|
|
16.5 %
|
Fleet and
Wholesale
|
|
391.6
|
|
|
357.3
|
|
9.6 %
|
Total
Revenue
|
$
|
6,299.8
|
|
$
|
6,029.2
|
|
4.5 %
|
|
|
|
|
|
|
|
|
Retail Automotive Gross
Profit: (Amounts in Millions)
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
313.8
|
|
$
|
311.4
|
|
0.8 %
|
Used
Vehicles
|
|
122.6
|
|
|
155.8
|
|
(21.3) %
|
Finance and Insurance,
Net
|
|
206.8
|
|
|
217.3
|
|
(4.8) %
|
Service and
Parts
|
|
398.9
|
|
|
350.5
|
|
13.8 %
|
Fleet and
Wholesale
|
|
20.5
|
|
|
15.7
|
|
30.6 %
|
Total Gross
Profit
|
$
|
1,062.6
|
|
$
|
1,050.7
|
|
1.1 %
|
|
|
|
|
|
|
|
|
Retail Automotive
Revenue Per Vehicle Retailed:
|
|
|
|
|
|
|
|
New Vehicles (excluding
agency)
|
$
|
56,822
|
|
$
|
53,714
|
|
5.8 %
|
Used
Vehicles
|
|
33,863
|
|
|
35,510
|
|
(4.6) %
|
|
|
|
|
|
|
|
|
Retail Automotive Gross
Profit Per Vehicle Retailed:
|
|
|
|
|
|
|
|
New Vehicles (excluding
agency)
|
$
|
6,315
|
|
$
|
6,840
|
|
(7.7) %
|
Used
Vehicles
|
|
1,808
|
|
|
2,284
|
|
(20.8) %
|
Finance and
Insurance (excluding agency)
|
|
1,773
|
|
|
1,910
|
|
(7.2) %
|
Agency
|
|
2,128
|
|
|
—
|
|
nm
|
|
|
|
|
|
|
|
|
Retail Automotive Gross
Margin:
|
|
|
|
|
|
|
|
New Vehicles
|
|
11.5 %
|
|
|
12.7 %
|
|
(120)bps
|
Used
Vehicles
|
|
5.3 %
|
|
|
6.4 %
|
|
(110)bps
|
Service and
Parts
|
|
58.4 %
|
|
|
59.8 %
|
|
(140)bps
|
Fleet and
Wholesale
|
|
5.2 %
|
|
|
4.4 %
|
|
+80bps
|
Total Gross
Margin
|
|
16.9 %
|
|
|
17.4 %
|
|
(50)bps
|
|
|
|
|
|
|
|
|
Retail Automotive
Revenue Mix Percentages:
|
|
|
|
|
|
|
|
New Vehicles
|
|
43.2 %
|
|
|
40.6 %
|
|
+260bps
|
Used
Vehicles
|
|
36.5 %
|
|
|
40.2 %
|
|
(370)bps
|
Finance and Insurance,
Net
|
|
3.3 %
|
|
|
3.6 %
|
|
(30)bps
|
Service and
Parts
|
|
10.8 %
|
|
|
9.7 %
|
|
+110bps
|
Fleet and
Wholesale
|
|
6.2 %
|
|
|
5.9 %
|
|
+30bps
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Gross
Profit Mix Percentages:
|
|
|
|
|
|
|
|
New Vehicles
|
|
29.5 %
|
|
|
29.6 %
|
|
(10)bps
|
Used
Vehicles
|
|
11.5 %
|
|
|
14.8 %
|
|
(330)bps
|
Finance and Insurance,
Net
|
|
19.5 %
|
|
|
20.7 %
|
|
(120)bps
|
Service and
Parts
|
|
37.5 %
|
|
|
33.4 %
|
|
+410bps
|
Fleet and
Wholesale
|
|
2.0 %
|
|
|
1.5 %
|
|
+50bps
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
|
Retail Automotive
Operations Same-Store
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2023
|
|
2022
|
|
Change
|
Retail Automotive
Same-Store Units:
|
|
|
|
|
|
|
|
New Retail
|
|
46,200
|
|
|
45,246
|
|
2.1 %
|
Used Retail
|
|
65,545
|
|
|
67,029
|
|
(2.2) %
|
Total
Retail
|
|
111,745
|
|
|
112,275
|
|
(0.5) %
|
New Agency
|
|
5,874
|
|
|
—
|
|
nm
|
Total Retail and
Agency
|
|
117,619
|
|
|
112,275
|
|
4.8 %
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Revenue: (Amounts in Millions)
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
2,646.8
|
|
$
|
2,434.7
|
|
8.7 %
|
Used
Vehicles
|
|
2,216.3
|
|
|
2,387.8
|
|
(7.2) %
|
Finance and Insurance,
Net
|
|
200.4
|
|
|
215.8
|
|
(7.1) %
|
Service and
Parts
|
|
642.9
|
|
|
582.6
|
|
10.4 %
|
Fleet and
Wholesale
|
|
381.0
|
|
|
351.3
|
|
8.5 %
|
Total
Revenue
|
$
|
6,087.4
|
|
$
|
5,972.2
|
|
1.9 %
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Gross Profit: (Amounts in Millions)
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
305.4
|
|
$
|
310.6
|
|
(1.7) %
|
Used
Vehicles
|
|
119.3
|
|
|
154.4
|
|
(22.7) %
|
Finance and Insurance,
Net
|
|
200.4
|
|
|
215.8
|
|
(7.1) %
|
Service and
Parts
|
|
379.1
|
|
|
348.2
|
|
8.9 %
|
Fleet and
Wholesale
|
|
20.6
|
|
|
15.6
|
|
32.1 %
|
Total Gross
Profit
|
$
|
1,024.8
|
|
$
|
1,044.6
|
|
(1.9) %
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Revenue Per Vehicle Retailed:
|
|
|
|
|
|
|
|
New Vehicles (excluding
agency)
|
$
|
57,058
|
|
$
|
53,810
|
|
6.0 %
|
Used
Vehicles
|
|
33,813
|
|
|
35,624
|
|
(5.1) %
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Gross Profit Per Vehicle Retailed:
|
|
|
|
|
|
|
|
New Vehicles (excluding
agency)
|
$
|
6,383
|
|
$
|
6,866
|
|
(7.0) %
|
Used
Vehicles
|
|
1,821
|
|
|
2,303
|
|
(20.9) %
|
Finance and
Insurance (excluding agency)
|
|
1,776
|
|
|
1,922
|
|
(7.6) %
|
Agency
|
|
2,123
|
|
|
—
|
|
nm
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Gross Margin:
|
|
|
|
|
|
|
|
New Vehicles
|
|
11.5 %
|
|
|
12.8 %
|
|
(130)bps
|
Used
Vehicles
|
|
5.4 %
|
|
|
6.5 %
|
|
(110)bps
|
Service and
Parts
|
|
59.0 %
|
|
|
59.8 %
|
|
(80)bps
|
Fleet and
Wholesale
|
|
5.4 %
|
|
|
4.4 %
|
|
+100bps
|
Total Gross
Margin
|
|
16.8 %
|
|
|
17.5 %
|
|
(70)bps
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Revenue Mix Percentages:
|
|
|
|
|
|
|
|
New Vehicles
|
|
43.5 %
|
|
|
40.8 %
|
|
+270bps
|
Used
Vehicles
|
|
36.4 %
|
|
|
40.0 %
|
|
(360)bps
|
Finance and Insurance,
Net
|
|
3.3 %
|
|
|
3.6 %
|
|
(30)bps
|
Service and
Parts
|
|
10.6 %
|
|
|
9.8 %
|
|
+80bps
|
Fleet and
Wholesale
|
|
6.2 %
|
|
|
5.8 %
|
|
+40bps
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Gross Profit Mix Percentages:
|
|
|
|
|
|
|
|
New Vehicles
|
|
29.8 %
|
|
|
29.7 %
|
|
+10bps
|
Used
Vehicles
|
|
11.6 %
|
|
|
14.8 %
|
|
(320)bps
|
Finance and Insurance,
Net
|
|
19.6 %
|
|
|
20.7 %
|
|
(110)bps
|
Service and
Parts
|
|
37.0 %
|
|
|
33.3 %
|
|
+370bps
|
Fleet and
Wholesale
|
|
2.0 %
|
|
|
1.5 %
|
|
+50bps
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
|
Retail Commercial Truck
Operations
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2023
|
|
2022
|
|
Change
|
Retail Commercial Truck
Units:
|
|
|
|
|
|
|
|
New Retail
|
|
4,517
|
|
|
3,855
|
|
17.2 %
|
Used Retail
|
|
655
|
|
|
837
|
|
(21.7) %
|
Total
|
|
5,172
|
|
|
4,692
|
|
10.2 %
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Revenue: (Amounts in Millions)
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
600.2
|
|
$
|
471.7
|
|
27.2 %
|
Used
Vehicles
|
|
49.5
|
|
|
100.3
|
|
(50.6) %
|
Finance and Insurance,
Net
|
|
5.0
|
|
|
6.4
|
|
(21.9) %
|
Service and
Parts
|
|
228.0
|
|
|
197.0
|
|
15.7 %
|
Wholesale and
Other
|
|
12.9
|
|
|
16.9
|
|
(23.7) %
|
Total
Revenue
|
$
|
895.6
|
|
$
|
792.3
|
|
13.0 %
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Gross Profit: (Amounts in Millions)
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
32.5
|
|
$
|
29.0
|
|
12.1 %
|
Used
Vehicles
|
|
5.4
|
|
|
15.9
|
|
(66.0) %
|
Finance and Insurance,
Net
|
|
5.0
|
|
|
6.4
|
|
(21.9) %
|
Service and
Parts
|
|
98.3
|
|
|
83.8
|
|
17.3 %
|
Wholesale and
Other
|
|
5.8
|
|
|
6.1
|
|
(4.9) %
|
Total Gross
Profit
|
$
|
147.0
|
|
$
|
141.2
|
|
4.1 %
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Revenue Per Vehicle Retailed:
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
132,884
|
|
$
|
122,357
|
|
8.6 %
|
Used
Vehicles
|
|
75,640
|
|
|
119,847
|
|
(36.9) %
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Gross Profit Per Vehicle Retailed:
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
7,190
|
|
$
|
7,511
|
|
(4.3) %
|
Used
Vehicles
|
|
8,195
|
|
|
18,961
|
|
(56.8) %
|
Finance and
Insurance
|
|
961
|
|
|
1,362
|
|
(29.4) %
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Gross Margin:
|
|
|
|
|
|
|
|
New Vehicles
|
|
5.4 %
|
|
|
6.1 %
|
|
(70)bps
|
Used
Vehicles
|
|
10.9 %
|
|
|
15.9 %
|
|
(500)bps
|
Service and
Parts
|
|
43.1 %
|
|
|
42.5 %
|
|
+60bps
|
Wholesale and
Other
|
|
45.0 %
|
|
|
36.1 %
|
|
+890bps
|
Total Gross
Margin
|
|
16.4 %
|
|
|
17.8 %
|
|
(140)bps
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Revenue Mix Percentages:
|
|
|
|
|
|
|
|
New Vehicles
|
|
67.0 %
|
|
|
59.5 %
|
|
+750bps
|
Used
Vehicles
|
|
5.5 %
|
|
|
12.7 %
|
|
(720)bps
|
Finance and Insurance,
Net
|
|
0.6 %
|
|
|
0.8 %
|
|
(20)bps
|
Service and
Parts
|
|
25.5 %
|
|
|
24.9 %
|
|
+60bps
|
Wholesale and
Other
|
|
1.4 %
|
|
|
2.1 %
|
|
(70)bps
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Gross Profit Mix Percentages:
|
|
|
|
|
|
|
|
New Vehicles
|
|
22.1 %
|
|
|
20.5 %
|
|
+160bps
|
Used
Vehicles
|
|
3.7 %
|
|
|
11.3 %
|
|
(760)bps
|
Finance and Insurance,
Net
|
|
3.4 %
|
|
|
4.5 %
|
|
(110)bps
|
Service and
Parts
|
|
66.9 %
|
|
|
59.3 %
|
|
+760bps
|
Wholesale and
Other
|
|
3.9 %
|
|
|
4.4 %
|
|
(50)bps
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
|
Retail Commercial Truck
Operations Same-Store
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2023
|
|
2022
|
|
Change
|
Retail Commercial Truck
Same-Store Units:
|
|
|
|
|
|
|
|
New Retail
|
|
4,332
|
|
|
3,822
|
|
13.3 %
|
Used Retail
|
|
642
|
|
|
831
|
|
(22.7) %
|
Total
|
|
4,974
|
|
|
4,653
|
|
6.9 %
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Revenue: (Amounts in Millions)
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
579.8
|
|
$
|
467.4
|
|
24.0 %
|
Used
Vehicles
|
|
48.5
|
|
|
99.7
|
|
(51.4) %
|
Finance and Insurance,
Net
|
|
4.9
|
|
|
6.3
|
|
(22.2) %
|
Service and
Parts
|
|
215.3
|
|
|
193.6
|
|
11.2 %
|
Wholesale and
Other
|
|
12.8
|
|
|
16.9
|
|
(24.3) %
|
Total
Revenue
|
$
|
861.3
|
|
$
|
783.9
|
|
9.9 %
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Gross Profit: (Amounts in Millions)
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
31.1
|
|
$
|
28.7
|
|
8.4 %
|
Used
Vehicles
|
|
5.2
|
|
|
15.8
|
|
(67.1) %
|
Finance and Insurance,
Net
|
|
4.9
|
|
|
6.3
|
|
(22.2) %
|
Service and
Parts
|
|
92.2
|
|
|
82.5
|
|
11.8 %
|
Wholesale and
Other
|
|
5.7
|
|
|
6.2
|
|
(8.1) %
|
Total Gross
Profit
|
$
|
139.1
|
|
$
|
139.5
|
|
(0.3) %
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Revenue Per Vehicle Retailed:
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
133,835
|
|
$
|
122,291
|
|
9.4 %
|
Used
Vehicles
|
|
75,572
|
|
|
119,983
|
|
(37.0) %
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Gross Profit Per Vehicle Retailed:
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
7,187
|
|
$
|
7,501
|
|
(4.2) %
|
Used
Vehicles
|
|
8,157
|
|
|
19,011
|
|
(57.1) %
|
Finance and
Insurance
|
|
976
|
|
|
1,364
|
|
(28.4) %
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Gross Margin:
|
|
|
|
|
|
|
|
New Vehicles
|
|
5.4 %
|
|
|
6.1 %
|
|
(70)bps
|
Used
Vehicles
|
|
10.7 %
|
|
|
15.8 %
|
|
(510)bps
|
Service and
Parts
|
|
42.8 %
|
|
|
42.6 %
|
|
+20bps
|
Wholesale and
Other
|
|
44.5 %
|
|
|
36.7 %
|
|
+780bps
|
Total Gross
Margin
|
|
16.2 %
|
|
|
17.8 %
|
|
(160)bps
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Revenue Mix Percentages:
|
|
|
|
|
|
|
|
New Vehicles
|
|
67.3 %
|
|
|
59.6 %
|
|
+770bps
|
Used
Vehicles
|
|
5.6 %
|
|
|
12.7 %
|
|
(710)bps
|
Finance and Insurance,
Net
|
|
0.6 %
|
|
|
0.8 %
|
|
(20)bps
|
Service and
Parts
|
|
25.0 %
|
|
|
24.7 %
|
|
+30bps
|
Wholesale and
Other
|
|
1.5 %
|
|
|
2.2 %
|
|
(70)bps
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Gross Profit Mix Percentages:
|
|
|
|
|
|
|
|
New Vehicles
|
|
22.4 %
|
|
|
20.6 %
|
|
+180bps
|
Used
Vehicles
|
|
3.7 %
|
|
|
11.3 %
|
|
(760)bps
|
Finance and Insurance,
Net
|
|
3.5 %
|
|
|
4.5 %
|
|
(100)bps
|
Service and
Parts
|
|
66.3 %
|
|
|
59.1 %
|
|
+720bps
|
Wholesale and
Other
|
|
4.1 %
|
|
|
4.5 %
|
|
(40)bps
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
|
Supplemental
Data
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2023
|
|
2022
|
Retail Automotive
Revenue Mix:
|
|
|
|
Premium:
|
|
|
|
BMW / MINI
|
25 %
|
|
25 %
|
Audi
|
11 %
|
|
11 %
|
Mercedes-Benz
|
10 %
|
|
10 %
|
Land Rover /
Jaguar
|
9 %
|
|
7 %
|
Porsche
|
8 %
|
|
7 %
|
Ferrari /
Maserati
|
3 %
|
|
3 %
|
Lexus
|
3 %
|
|
3 %
|
Acura
|
1 %
|
|
1 %
|
Bentley
|
1 %
|
|
1 %
|
Others
|
1 %
|
|
2 %
|
Total
Premium
|
72 %
|
|
70 %
|
Volume
Non-U.S.:
|
|
|
|
Toyota
|
9 %
|
|
11 %
|
Honda
|
5 %
|
|
5 %
|
Volkswagen
|
2 %
|
|
2 %
|
Hyundai
|
1 %
|
|
1 %
|
Others
|
2 %
|
|
1 %
|
Total Volume
Non-U.S.
|
19 %
|
|
20 %
|
U.S.:
|
|
|
|
General Motors /
Stellantis
|
1 %
|
|
1 %
|
CarShop Used
Vehicle Centers
|
8 %
|
|
9 %
|
Total
|
100 %
|
|
100 %
|
|
Three Months
Ended
|
|
March
31,
|
Capital Expenditures
/ Stock Repurchases:
|
2023
|
|
2022
|
(Amounts in
Millions)
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
|
102.4
|
|
$
|
|
56.2
|
Cash paid for
acquisitions, net of cash acquired
|
$
|
|
—
|
|
$
|
|
93.6
|
Stock
repurchases:
|
|
|
|
|
|
|
|
Aggregate
purchase price
|
$
|
|
110.2
|
|
$
|
|
119.2
|
Shares
repurchased
|
|
|
0.9
|
|
|
|
1.2
|
Balance Sheet and
Other Highlights:
|
March 31,
2023
|
|
December 31,
2022
|
(Amounts in
Millions)
|
|
|
|
|
|
Cash and Cash
Equivalents
|
$
|
100.6
|
|
$
|
106.5
|
Inventories
|
$
|
3,630.4
|
|
$
|
3,509.1
|
Total Floor Plan Notes
Payable
|
$
|
2,896.1
|
|
$
|
2,996.3
|
Total Long-Term
Debt
|
$
|
1,701.3
|
|
$
|
1,622.1
|
Equity
|
$
|
4,351.4
|
|
$
|
4,174.8
|
|
|
|
|
|
|
Debt to Total
Capitalization Ratio
|
|
28.1 %
|
|
|
28.0 %
|
Leverage Ratio
(1)
|
|
0.9x
|
|
|
0.8x
|
New vehicle days'
supply
|
|
26days
|
|
|
25days
|
Used vehicle days'
supply
|
|
39days
|
|
|
53days
|
__________________________
|
(1)
See the following Non-GAAP reconciliation
table
|
PENSKE AUTOMOTIVE
GROUP, INC.
|
Consolidated Non-GAAP
Reconciliations
|
(Unaudited)
|
|
The following table
reconciles the leverage ratio as of March 31, 2023, and
December 31, 2022:
|
|
|
Nine
|
|
Three
|
|
Trailing
Twelve
|
|
Twelve
|
|
Months
Ended
|
|
Months
Ended
|
|
Months
Ended
|
|
Months
Ended
|
(Amounts in Millions)
|
December 31,
2022
|
|
March 31,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
$
1,016.7
|
|
$
299.6
|
|
$
1,316.3
|
|
$
1,386.2
|
Add:
Depreciation
|
|
95.4
|
|
|
33.9
|
|
|
129.3
|
|
|
127.3
|
Other Interest
Expense
|
|
53.9
|
|
|
20.8
|
|
|
74.7
|
|
|
70.4
|
Income
Taxes
|
|
344.9
|
|
|
107.3
|
|
|
452.2
|
|
|
473.0
|
EBITDA
|
$
1,510.9
|
|
$
461.6
|
|
$
1,972.5
|
|
$
2,056.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-Vehicle
Long-Term Debt
|
|
|
|
|
|
|
$
1,701.3
|
|
$
1,622.1
|
Leverage
Ratio
|
|
|
|
|
|
|
|
0.9x
|
|
|
0.8x
|
The following table
reconciles reported net income to earnings before interest, taxes,
depreciation, and amortization ("EBITDA") for the three months
ended March 31, 2023 and 2022:
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
March
31,
|
|
2023 vs.
2022
|
(Amounts in Millions)
|
2023
|
|
2022
|
|
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
$
|
299.6
|
|
$
|
369.5
|
|
$
|
(69.9)
|
|
(18.9) %
|
Add:
Depreciation
|
|
33.9
|
|
|
31.9
|
|
|
2.0
|
|
6.3 %
|
Other Interest
Expense
|
|
20.8
|
|
|
16.5
|
|
|
4.3
|
|
26.1 %
|
Income
Taxes
|
|
107.3
|
|
|
128.1
|
|
|
(20.8)
|
|
(16.2) %
|
EBITDA
|
$
|
461.6
|
|
$
|
546.0
|
|
$
|
(84.4)
|
|
(15.5) %
|
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SOURCE Penske Automotive Group, Inc.