PENSKE AUTOMOTIVE GROUP REPORTS RECORD FOURTH QUARTER AND RECORD FULL YEAR 2021 RESULTS
All Time Fourth Quarter and Full Year Records for Revenue, Earnings Before Taxes, Income From Continuing Operations and Earnings Per Share
BLOOMFIELD HILLS, Mich., Feb. 9, 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 record fourth quarter and twelve months 2021 results. In the fourth quarter, the company reported a 55.1% increase in income from continuing operations attributable to common shareholders to $310.4 million and a 59.4% increase in related earnings per share to $3.97. As reconciled in the attached schedules, adjusted income from continuing operations attributable to common shareholders increased 60.3% to $320.5 million and adjusted earnings per share increased 64.7% to $4.10. Foreign exchange positively impacted earnings per share by $0.01.
Fourth Quarter 2021 Operating Highlights versus Fourth Quarter 2020
- Total Revenue – increased 8.3% to $6.3 billion from $5.8 billion
- Total Gross Profit – increased 31.3%; Gross Margin – increased 320 basis points to 18.7%
- Retail Automotive Gross Profit – increased 29.4%
- Retail Commercial Truck Dealership Earnings Before Taxes – increased 68.9%
- Penske Transportation Solutions Equity Earnings – increased 61.6%
- Selling, General & Administrative Expenses as a Percentage of Gross Profit – improved by 260 basis points to 67.1%
Fourth Quarter 2021 Same-Store Highlights versus Fourth Quarter 2020
- Retail Automotive Same-Store Revenue – increased 4.1%
- New Vehicle -8.4%; Used Vehicle +21.7%; Finance & Insurance +20.3%; Service & Parts +9.7%
- Retail Automotive Same-Store Gross Profit – increased 25.6%
- New Vehicle +33.4%; Used Vehicle +56.6%; Finance & Insurance +20.3%; Service & Parts +8.6%
- Commercial Truck Same-Store Gross Profit – increased 29.4%
Commenting on the Company's results, Chair and CEO Roger Penske said, "During the fourth quarter, our diversified business and strong execution by our team produced record revenue, earnings before taxes, net income, and earnings per share, driven by strong retail automotive and commercial truck vehicle margins, a 26% increase in same-store retail automotive gross profit, and continued strong earnings from Penske Transportation Solutions which increased 62%." Penske continued, "For the year, I am pleased to report all-time record profitability including a 127% increase in earnings before taxes to over $1.6 billion and a 118% increase in income from continuing operations to $1.2 billion. Over the last two years we have paid down nearly $900 million in non-vehicle debt, reduced our debt to total capitalization to 26% from 46%, and improved our leverage ratio from 2.9x to 0.8x and as of December 31, 2021, returned over $530 million to shareholders through share repurchases and cash dividends."
For the twelve months ended December 31, 2021, the company reported a 118.4% increase in income from continuing operations attributable to common shareholders to $1.2 billion and a 120.8% increase in related earnings per share to $14.88. This compares to income from continuing operations attributable to common shareholders of $543.2 million, or $6.74 per share, in the prior year. As reconciled in the attached schedules, adjusted income from continuing operations increased 127.9% to $1.2 billion, and adjusted earnings per share increased 130.1% to $15.28. Foreign exchange positively impacted earnings per share by $0.24.
Full Year 2021 Operating Highlights
- Retail Automotive Unit Sales – increased 11.7%, including 11.1% on a same-store basis
- Total Revenue – All-time record revenue increased 25.0% to $25.6 billion from $20.4 billion
- Total Gross Profit – increased 39.5%; Gross Margin – increased 180 basis points to 17.4%
- Retail Automotive Gross Profit – increased 39.2%
- Retail Commercial Truck Dealership Earnings Before Taxes – increased 105.0%
- Penske Transportation Solutions Equity Earnings – increased 122.4%
- Selling, General & Administrative Expenses as a Percentage of Gross Profit – improved by 760 basis points to 66.7%
Retail Automotive Dealerships
For the three months ended December 31, 2021, total retail automotive revenue increased 7.3% to $5.5 billion, or 4.1% on a same-store basis, including 61.0% for CarShop. Total retail automotive gross profit increased 29.4% to $1.0 billion, including 25.6% on a same-store basis. Gross margin increased 320 basis points to 18.6% as variable gross profit per unit retailed increased 49.0%, or $2,155, to $6,552.
CarShop Used Vehicle Centers
We currently operate twenty-three CarShop used vehicle locations including the six locations we added during 2021. We are targeting 150,000 in unit sales and $100 million of earnings before taxes for CarShop by the end of 2023. For the three months ended December 31, 2021, retail unit sales increased by 24.3% to 14,815 while revenue increased by 61.0% to $393.9 million, including an increase of 38.4% on a same-store basis. For the twelve months ended December 31, 2021, retail unit sales increased by 19.2% to 63,403 while revenue increased by 43.2% to $1.5 billion, including 30.9% on a same-store basis.
Retail Commercial Truck Dealerships
For the three months ended December 31, 2021, earnings before taxes increased 68.9% to $44.8 million compared to $26.5 million in the same period last year, for a return on sales of 6.5%. The increase in earnings before taxes was principally driven by a 50.9% increase in gross profit, including a 29.4% increase in same-store gross profit. For the twelve months ended December 31, 2021, earnings before taxes increased 105.0% to $160.3 million compared to $78.2 million in the same period last year and return on sales was 6.5%. The increase in earnings before taxes was principally driven by a 48.4% increase in gross profit, including a 34.0% increase on a same-store basis.
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 twelve months ended December 31, 2021, the company recorded $91.3 million and $365.8 million in earnings compared to $56.5 million and $164.5 million for the same period last year, representing increases of 61.6% and 122.4%, respectively. The increase was principally driven by 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 11% return on sales for PTS during the fourth quarter 2021.
Corporate Development and Capital Allocation
During the twelve months ended December 31, 2021, we completed acquisitions and new dealership open points representing approximately $1.3 billion in annualized revenues within our retail automotive and commercial truck dealership businesses.
In addition to our efforts to grow the business, on January 26, 2022, we announced an increase in the quarterly dividend to $0.47 per share, payable on March 1, 2022, to shareholders of record as of February 10, 2022. During 2021, the company increased the dividend four times, returning $142.5 million to shareholders. Also, the company repurchased 3,261,580 shares (approximately 4.2% of shares outstanding) for $293.5 million representing an average price of $89.98 per share.
From January 1, 2022, through February 8, 2022, Penske Automotive repurchased an additional 0.4 million shares for an aggregate purchase price of $36.1 million. As of February 8, 2022, approximately $194.3 million remains available to repurchase additional shares under the company's existing share repurchase authorization.
Conference Call
Penske Automotive Group will host a conference call discussing financial results relating to the fourth quarter of 2021 on Wednesday, February 9, 2022, at 2:00 p.m. Eastern Time. To listen to the conference call, participants must dial (866) 996-5381 [International, please dial (602) 585-9891] using access code 7854768. 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 fourth 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, 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 360,000 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 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, 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, the satisfaction of closing conditions or completion of planned acquisitions, changes in tariff rates, changes in the distribution model in our international operations via agency or other means, 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 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 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 |
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PENSKE AUTOMOTIVE GROUP, INC. | |||||||||||
Consolidated Condensed Statements of Income | |||||||||||
(Amounts In Millions, Except Per Share Data) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||
December 31, | December 31, | ||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||
Revenue | $ 6,296.1 | $ 5,812.1 | 8.3% | $ 25,554.7 | $ 20,443.9 | 25.0% | |||||
Cost of Sales | 5,116.9 | 4,913.7 | 4.1% | 21,113.9 | 17,259.4 | 22.3% | |||||
Gross Profit | $ 1,179.2 | $ 898.4 | 31.3% | $ 4,440.8 | $ 3,184.5 | 39.5% | |||||
SG&A Expenses | 791.1 | 625.8 | 26.4% | 2,962.9 | 2,364.5 | 25.3% | |||||
Depreciation | 31.8 | 30.1 | 5.6% | 121.5 | 115.5 | 5.2% | |||||
Operating Income | $ 356.3 | $ 242.5 | 46.9% | $ 1,356.4 | $ 704.5 | 92.5% | |||||
Floor Plan Interest Expense | (2.8) | (8.9) | (68.5)% | (26.2) | (46.3) | (43.4)% | |||||
Other Interest Expense | (14.8) | (21.8) | (32.1)% | (68.6) | (111.0) | (38.2)% | |||||
Debt Redemption Costs | — | (6.9) | nm | (17.0) | (8.6) | nm | |||||
Loss on Investment | (11.4) | — | nm | (11.4) | — | nm | |||||
Equity in Earnings of Affiliates | 93.0 | 58.4 | 59.2% | 374.5 | 169.0 | 121.6% | |||||
Income from Continuing Operations Before Income Taxes | $ 420.3 | $ 263.3 | 59.6% | $ 1,607.7 | $ 707.6 | 127.2% | |||||
Income Taxes | (108.3) | (62.0) | 74.7% | (416.3) | (162.7) | 155.9% | |||||
Income from Continuing Operations | $ 312.0 | $ 201.3 | 55.0% | $ 1,191.4 | $ 544.9 | 118.6% | |||||
Income from Discontinued Operations, net of tax | 0.9 | 0.1 | nm | 1.3 | 0.4 | nm | |||||
Net Income | $ 312.9 | $ 201.4 | 55.4% | $ 1,192.7 | $ 545.3 | 118.7% | |||||
Less: Income Attributable to Non-Controlling Interests | 1.6 | 1.2 | nm | 4.9 | 1.7 | nm | |||||
Net Income Attributable to Common Shareholders | $ 311.3 | $ 200.2 | 55.5% | $ 1,187.8 | $ 543.6 | 118.5% | |||||
Amounts Attributable to Common Shareholders: | |||||||||||
Reported Income from Continuing Operations | $ 312.0 | $ 201.3 | 55.0% | $ 1,191.4 | $ 544.9 | 118.6% | |||||
Less: Income Attributable to Non-Controlling Interests | 1.6 | 1.2 | nm | 4.9 | 1.7 | nm | |||||
Income from Continuing Operations, net of tax | $ 310.4 | $ 200.1 | 55.1% | $ 1,186.5 | $ 543.2 | 118.4% | |||||
Income from Discontinued Operations, net of tax | 0.9 | 0.1 | nm | 1.3 | 0.4 | nm | |||||
Net Income Attributable to Common Shareholders | $ 311.3 | $ 200.2 | 55.5% | $ 1,187.8 | $ 543.6 | 118.5% | |||||
Income from Continuing Operations Per Share | $ 3.97 | $ 2.49 | 59.4% | $ 14.88 | $ 6.74 | 120.8% | |||||
Income Per Share | $ 3.99 | $ 2.49 | 60.2% | $ 14.89 | $ 6.74 | 120.8% | |||||
Weighted Average Shares Outstanding | 78.1 | 80.4 | (2.9)% | 79.7 | 80.6 | (1.1)% | |||||
nm – not meaningful | |||||||||||
PENSKE AUTOMOTIVE GROUP, INC. | ||||||
Consolidated Condensed Balance Sheets | ||||||
(Amounts In Millions) | ||||||
(Unaudited) | ||||||
December 31, | December 31, | |||||
2021 | 2020 | |||||
Assets: | ||||||
Cash and Cash Equivalents | $ 100.7 | $ 49.5 | ||||
Accounts Receivable, Net | 734.0 | 806.9 | ||||
Inventories | 3,129.0 | 3,425.6 | ||||
Other Current Assets | 111.7 | 126.8 | ||||
Total Current Assets | 4,075.4 | 4,408.8 | ||||
Property and Equipment, Net | 2,442.2 | 2,404.4 | ||||
Operating Lease Right-of-Use Assets | 2,451.4 | 2,416.5 | ||||
Intangibles | 2,765.6 | 2,491.8 | ||||
Other Long-Term Assets | 1,730.0 | 1,525.7 | ||||
Total Assets | $ 13,464.6 | $ 13,247.2 | ||||
Liabilities and Equity: | ||||||
Floor Plan Notes Payable | $ 1,144.8 | $ 1,780.5 | ||||
Floor Plan Notes Payable – Non-Trade | 1,409.9 | 1,363.8 | ||||
Accounts Payable | 767.1 | 675.4 | ||||
Accrued Expenses and Other Current Liabilities | 870.3 | 767.2 | ||||
Current Portion Long-Term Debt | 82.0 | 87.5 | ||||
Liabilities Held for Sale | 0.5 | 0.5 | ||||
Total Current Liabilities | 4,274.6 | 4,674.9 | ||||
Long-Term Debt | 1,392.0 | 1,602.1 | ||||
Long-Term Operating Lease Liabilities | 2,373.6 | 2,350.3 | ||||
Other Long-Term Liabilities | 1,329.4 | 1,293.8 | ||||
Total Liabilities | 9,369.6 | 9,921.1 | ||||
Equity | 4,095.0 | 3,326.1 | ||||
Total Liabilities and Equity | $ 13,464.6 | $ 13,247.2 | ||||
PENSKE AUTOMOTIVE GROUP, INC. | |||||||
Consolidated Operations | |||||||
Selected Data | |||||||
(Unaudited) | |||||||
Three Months Ended | Twelve Months Ended | ||||||
December 31, | December 31, | ||||||
2021 | 2020 | 2021 | 2020 | ||||
Geographic Revenue Mix: | |||||||
North America | 61.5% | 61.3% | 60.8% | 60.3% | |||
U.K. | 29.9% | 29.9% | 31.2% | 31.0% | |||
Other International | 8.6% | 8.8% | 8.0% | 8.7% | |||
Total | 100.0% | 100.0% | 100.0% | 100.0% | |||
Revenue: (Amounts in Millions) | |||||||
Retail Automotive | $ 5,473.9 | $ 5,100.7 | $ 22,513.3 | $ 17,928.8 | |||
Retail Commercial Trucks | 688.4 | 579.4 | 2,465.7 | 2,060.9 | |||
Commercial Vehicles Australia/Power Systems | 133.8 | 132.0 | 575.7 | 454.2 | |||
Total | $ 6,296.1 | $ 5,812.1 | $ 25,554.7 | $ 20,443.9 | |||
Gross Profit: (Amounts in Millions) | |||||||
Retail Automotive | $ 1,019.0 | $ 787.2 | $ 3,870.2 | $ 2,781.3 | |||
Retail Commercial Trucks | 118.9 | 78.8 | 416.9 | 280.9 | |||
Commercial Vehicles Australia/Power Systems | 41.3 | 32.4 | 153.7 | 122.3 | |||
Total | $ 1,179.2 | $ 898.4 | $ 4,440.8 | $ 3,184.5 | |||
Gross Margin: | |||||||
Retail Automotive | 18.6% | 15.4% | 17.2% | 15.5% | |||
Retail Commercial Trucks | 17.3% | 13.6% | 16.9% | 13.6% | |||
Commercial Vehicles Australia/Power Systems | 30.9% | 24.5% | 26.7% | 26.9% | |||
Total | 18.7% | 15.5% | 17.4% | 15.6% | |||
Three Months Ended | Twelve Months Ended | ||||||
December 31, | December 31, | ||||||
2021 | 2020 | 2021 | 2020 | ||||
Operating Items as a Percentage of Revenue: | |||||||
Gross Profit | 18.7% | 15.5% | 17.4% | 15.6% | |||
Selling, General and Administrative Expenses | 12.6% | 10.8% | 11.6% | 11.6% | |||
Operating Income | 5.7% | 4.2% | 5.3% | 3.4% | |||
Income from Continuing Operations Before Income Taxes | 6.7% | 4.5% | 6.3% | 3.5% | |||
Operating Items as a Percentage of Total Gross Profit: | |||||||
Selling, General and Administrative Expenses | 67.1% | 69.7% | 66.7% | 74.3% | |||
Operating Income | 30.2% | 27.0% | 30.5% | 22.1% | |||
Three Months Ended | Twelve Months Ended | ||||||||||
December 31, | December 31, | ||||||||||
(Amounts in Millions) | 2021 | 2020 | 2021 | 2020 | |||||||
EBITDA (1) | $ 466.9 | $ 315.2 | $ 1,797.8 | $ 934.1 | |||||||
Floor Plan Credits | $ 9.4 | $ 11.8 | $ 47.5 | $ 39.1 | |||||||
Rent Expense | $ 60.2 | $ 58.7 | $ 237.9 | $ 231.8 | |||||||
____________________ |
(1) See the following Non-GAAP reconciliation table. |
PENSKE AUTOMOTIVE GROUP, INC. | |||||||||||||||
Retail Automotive Operations | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||
Retail Automotive Units: | |||||||||||||||
New Retail | 42,813 | 52,041 | (17.7)% | 195,384 | 178,437 | 9.5% | |||||||||
Used Retail | 58,919 | 57,013 | 3.3% | 264,520 | 233,469 | 13.3% | |||||||||
Total | 101,732 | 109,054 | (6.7)% | 459,904 | 411,906 | 11.7% | |||||||||
Retail Automotive Revenue: (Amounts in Millions) | |||||||||||||||
New Vehicles | $ | 2,335.3 | $ | 2,480.7 | (5.9)% | $ | 9,843.2 | $ | 8,080.5 | 21.8% | |||||
Used Vehicles | 2,111.1 | 1,674.9 | 26.0% | 8,549.0 | 6,414.7 | 33.3% | |||||||||
Finance and Insurance, Net | 196.7 | 160.5 | 22.6% | 780.5 | 576.3 | 35.4% | |||||||||
Service and Parts | 560.9 | 503.4 | 11.4% | 2,165.6 | 1,883.7 | 15.0% | |||||||||
Fleet and Wholesale | 269.9 | 281.2 | (4.0)% | 1,175.0 | 973.6 | 20.7% | |||||||||
Total Revenue | $ | 5,473.9 | $ | 5,100.7 | 7.3% | $ | 22,513.3 | $ | 17,928.8 | 25.6% | |||||
Retail Automotive Gross Profit: (Amounts in Millions) | |||||||||||||||
New Vehicles | $ | 299.9 | $ | 215.2 | 39.4% | $ | 1,045.5 | $ | 652.8 | 60.2% | |||||
Used Vehicles | 169.9 | 104.0 | 63.4% | 666.6 | 388.9 | 71.4% | |||||||||
Finance and Insurance, Net | 196.7 | 160.5 | 22.6% | 780.5 | 576.3 | 35.4% | |||||||||
Service and Parts | 331.2 | 300.4 | 10.3% | 1,307.3 | 1,127.4 | 16.0% | |||||||||
Fleet and Wholesale | 21.3 | 7.1 | 200.0% | 70.3 | 35.9 | 95.8% | |||||||||
Total Gross Profit | $ | 1,019.0 | $ | 787.2 | 29.4% | $ | 3,870.2 | $ | 2,781.3 | 39.2% | |||||
Retail Automotive Revenue Per Vehicle Retailed: | |||||||||||||||
New Vehicles | $ | 54,547 | $ | 47,669 | 14.4% | $ | 50,379 | $ | 45,285 | 11.2% | |||||
Used Vehicles | 35,831 | 29,380 | 22.0% | 32,319 | 27,476 | 17.6% | |||||||||
Retail Automotive Gross Profit Per Vehicle Retailed: | |||||||||||||||
New Vehicles | $ | 7,006 | $ | 4,136 | 69.4% | $ | 5,351 | $ | 3,659 | 46.2% | |||||
Used Vehicles | 2,884 | 1,823 | 58.2% | 2,520 | 1,666 | 51.3% | |||||||||
Finance and Insurance | 1,933 | 1,470 | 31.5% | 1,697 | 1,399 | 21.3% | |||||||||
Retail Automotive Gross Margin: | |||||||||||||||
New Vehicles | 12.8% | 8.7% | +410bps | 10.6% | 8.1% | +250bps | |||||||||
Used Vehicles | 8.0% | 6.2% | +180bps | 7.8% | 6.1% | +170bps | |||||||||
Service and Parts | 59.0% | 59.7% | (70)bps | 60.4% | 59.9% | +50bps | |||||||||
Fleet and Wholesale | 7.9% | 2.5% | +540bps | 6.0% | 3.7% | +230bps | |||||||||
Total Gross Margin | 18.6% | 15.4% | +320bps | 17.2% | 15.5% | +170bps | |||||||||
Retail Automotive Revenue Mix Percentages: | |||||||||||||||
New Vehicles | 42.7% | 48.6% | (590)bps | 43.7% | 45.1% | (140)bps | |||||||||
Used Vehicles | 38.6% | 32.8% | +580bps | 38.0% | 35.8% | +220bps | |||||||||
Finance and Insurance, Net | 3.6% | 3.1% | +50bps | 3.5% | 3.2% | +30bps | |||||||||
Service and Parts | 10.2% | 9.9% | +30bps | 9.6% | 10.5% | (90)bps | |||||||||
Fleet and Wholesale | 4.9% | 5.6% | (70)bps | 5.2% | 5.4% | (20)bps | |||||||||
Total | 100.0% | 100.0% | 100.0% | 100.0% | |||||||||||
Retail Automotive Gross Profit Mix Percentages: | |||||||||||||||
New Vehicles | 29.4% | 27.3% | +210bps | 27.0% | 23.5% | +350bps | |||||||||
Used Vehicles | 16.7% | 13.2% | +350bps | 17.2% | 14.0% | +320bps | |||||||||
Finance and Insurance, Net | 19.3% | 20.4% | (110)bps | 20.2% | 20.7% | (50)bps | |||||||||
Service and Parts | 32.5% | 38.2% | (570)bps | 33.8% | 40.5% | (670)bps | |||||||||
Fleet and Wholesale | 2.1% | 0.9% | +120bps | 1.8% | 1.3% | +50bps | |||||||||
Total | 100.0% | 100.0% | 100.0% | 100.0% | |||||||||||
PENSKE AUTOMOTIVE GROUP, INC. | |||||||||||||||
Retail Automotive Operations Same-Store | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||
Retail Automotive Same-Store Units: | |||||||||||||||
New Retail | 41,895 | 51,674 | (18.9)% | 193,946 | 175,873 | 10.3% | |||||||||
Used Retail | 55,921 | 56,395 | (0.8)% | 257,386 | 230,468 | 11.7% | |||||||||
Total | 97,816 | 108,069 | (9.5)% | 451,332 | 406,341 | 11.1% | |||||||||
Retail Automotive Same-Store Revenue: (Amounts in Millions) | |||||||||||||||
New Vehicles | $ | 2,260.4 | $ | 2,467.8 | (8.4)% | $ | 9,724.8 | $ | 7,994.5 | 21.6% | |||||
Used Vehicles | 2,020.7 | 1,660.7 | 21.7% | 8,360.6 | 6,343.0 | 31.8% | |||||||||
Finance and Insurance, Net | 191.6 | 159.3 | 20.3% | 768.5 | 570.1 | 34.8% | |||||||||
Service and Parts | 547.2 | 498.6 | 9.7% | 2,141.0 | 1,857.2 | 15.3% | |||||||||
Fleet and Wholesale | 252.0 | 278.5 | (9.5)% | 1,148.7 | 957.8 | 19.9% | |||||||||
Total Revenue | $ | 5,271.9 | $ | 5,064.9 | 4.1% | $ | 22,143.6 | $ | 17,722.6 | 24.9% | |||||
Retail Automotive Same-Store Gross Profit: (Amounts in Millions) | |||||||||||||||
New Vehicles | $ | 286.2 | $ | 214.5 | 33.4% | $ | 1,026.4 | $ | 648.0 | 58.4% | |||||
Used Vehicles | 162.9 | 104.0 | 56.6% | 652.5 | 386.0 | 69.0% | |||||||||
Finance and Insurance, Net | 191.6 | 159.3 | 20.3% | 768.5 | 570.1 | 34.8% | |||||||||
Service and Parts | 323.6 | 298.1 | 8.6% | 1,291.7 | 1,113.0 | 16.1% | |||||||||
Fleet and Wholesale | 19.0 | 7.1 | 167.6% | 67.9 | 35.5 | 91.3% | |||||||||
Total Gross Profit | $ | 983.3 | $ | 783.0 | 25.6% | $ | 3,807.0 | $ | 2,752.6 | 38.3% | |||||
Retail Automotive Same-Store Revenue Per Vehicle Retailed: | |||||||||||||||
New Vehicles | $ | 53,955 | $ | 47,757 | 13.0% | $ | 50,142 | $ | 45,456 | 10.3% | |||||
Used Vehicles | 36,134 | 29,447 | 22.7% | 32,483 | 27,522 | 18.0% | |||||||||
Retail Automotive Same-Store Gross Profit Per Vehicle Retailed: | |||||||||||||||
New Vehicles | $ | 6,832 | $ | 4,150 | 64.6% | $ | 5,292 | $ | 3,684 | 43.6% | |||||
Used Vehicles | 2,913 | 1,843 | 58.1% | 2,535 | 1,675 | 51.3% | |||||||||
Finance and Insurance | 1,959 | 1,474 | 32.9% | 1,703 | 1,403 | 21.4% | |||||||||
Retail Automotive Same-Store Gross Margin: | |||||||||||||||
New Vehicles | 12.7% | 8.7% | +400bps | 10.6% | 8.1% | +250bps | |||||||||
Used Vehicles | 8.1% | 6.3% | +180bps | 7.8% | 6.1% | +170bps | |||||||||
Service and Parts | 59.1% | 59.8% | (70)bps | 60.3% | 59.9% | +40bps | |||||||||
Fleet and Wholesale | 7.5% | 2.5% | +500bps | 5.9% | 3.7% | +220bps | |||||||||
Total Gross Margin | 18.7% | 15.5% | +320bps | 17.2% | 15.5% | +170bps | |||||||||
Retail Automotive Same-Store Revenue Mix Percentages: | |||||||||||||||
New Vehicles | 42.9% | 48.7% | (580)bps | 43.9% | 45.1% | (120)bps | |||||||||
Used Vehicles | 38.3% | 32.8% | +550bps | 37.8% | 35.8% | +200bps | |||||||||
Finance and Insurance, Net | 3.6% | 3.1% | +50bps | 3.5% | 3.2% | +30bps | |||||||||
Service and Parts | 10.4% | 9.8% | +60bps | 9.7% | 10.5% | (80)bps | |||||||||
Fleet and Wholesale | 4.8% | 5.6% | (80)bps | 5.1% | 5.4% | (30)bps | |||||||||
Total | 100.0% | 100.0% | 100.0% | 100.0% | |||||||||||
Retail Automotive Same-Store Gross Profit Mix Percentages: | |||||||||||||||
New Vehicles | 29.1% | 27.4% | +170bps | 27.0% | 23.5% | +350bps | |||||||||
Used Vehicles | 16.6% | 13.3% | +330bps | 17.1% | 14.0% | +310bps | |||||||||
Finance and Insurance, Net | 19.5% | 20.3% | (80)bps | 20.2% | 20.7% | (50)bps | |||||||||
Service and Parts | 32.9% | 38.1% | (520)bps | 33.9% | 40.4% | (650)bps | |||||||||
Fleet and Wholesale | 1.9% | 0.9% | +100bps | 1.8% | 1.4% | +40bps | |||||||||
Total | 100.0% | 100.0% | 100.0% | 100.0% | |||||||||||
PENSKE AUTOMOTIVE GROUP, INC. | |||||||||||||||
Retail Commercial Truck Operations | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||
Retail Commercial Truck Units: | |||||||||||||||
New Retail | 3,629 | 3,254 | 11.5% | 13,000 | 11,324 | 14.8% | |||||||||
Used Retail | 830 | 1,071 | (22.5)% | 3,431 | 3,826 | (10.3)% | |||||||||
Total | 4,459 | 4,325 | 3.1% | 16,431 | 15,150 | 8.5% | |||||||||
Retail Commercial Truck Revenue: (Amounts in Millions) | |||||||||||||||
New Vehicles | $ | 429.3 | $ | 385.5 | 11.4% | $ | 1,540.1 | $ | 1,315.9 | 17.0% | |||||
Used Vehicles | 79.4 | 58.8 | 35.0% | 270.6 | 194.2 | 39.3% | |||||||||
Finance and Insurance, Net | 5.0 | 4.0 | 25.0% | 16.8 | 14.5 | 15.9% | |||||||||
Service and Parts | 166.2 | 120.0 | 38.5% | 609.0 | 478.1 | 27.4% | |||||||||
Wholesale and Other | 8.5 | 11.1 | (23.4)% | 29.2 | 58.2 | (49.8)% | |||||||||
Total Revenue | $ | 688.4 | $ | 579.4 | 18.8% | $ | 2,465.7 | $ | 2,060.9 | 19.6% | |||||
Retail Commercial Truck Gross Profit: (Amounts in Millions) | |||||||||||||||
New Vehicles | $ | 24.1 | $ | 16.0 | 50.6% | $ | 80.2 | $ | 50.4 | 59.1% | |||||
Used Vehicles | 15.7 | 4.9 | 220.4% | 48.1 | 0.4 | nm | |||||||||
Finance and Insurance, Net | 5.0 | 4.0 | 25.0% | 16.8 | 14.5 | 15.9% | |||||||||
Service and Parts | 70.2 | 51.9 | 35.3% | 257.0 | 207.3 | 24.0% | |||||||||
Wholesale and Other | 3.9 | 2.0 | 95.0% | 14.8 | 8.3 | 78.3% | |||||||||
Total Gross Profit | $ | 118.9 | $ | 78.8 | 50.9% | $ | 416.9 | $ | 280.9 | 48.4% | |||||
Retail Commercial Truck Revenue Per Vehicle Retailed: | |||||||||||||||
New Vehicles | $ | 118,300 | $ | 118,471 | (0.1)% | $ | 118,467 | $ | 116,201 | 2.0% | |||||
Used Vehicles | 95,667 | 54,878 | 74.3% | 78,874 | 50,747 | 55.4% | |||||||||
Retail Commercial Truck Gross Profit Per Vehicle Retailed: | |||||||||||||||
New Vehicles | $ | 6,650 | $ | 4,911 | 35.4% | $ | 6,166 | $ | 4,451 | 38.5% | |||||
Used Vehicles | 18,891 | 4,578 | 312.6% | 14,015 | 97 | nm | |||||||||
Finance and Insurance | 1,113 | 925 | 20.3% | 1,020 | 959 | 6.4% | |||||||||
Retail Commercial Truck Gross Margin: | |||||||||||||||
New Vehicles | 5.6% | 4.2% | +140bps | 5.2% | 3.8% | +140bps | |||||||||
Used Vehicles | 19.8% | 8.3% | +1,150bps | 17.8% | 0.2% | +1,760bps | |||||||||
Service and Parts | 42.2% | 43.3% | (110)bps | 42.2% | 43.4% | (120)bps | |||||||||
Total Gross Margin | 17.3% | 13.6% | +370bps | 16.9% | 13.6% | +330bps | |||||||||
Retail Commercial Truck Revenue Mix Percentages: | |||||||||||||||
New Vehicles | 62.4% | 66.5% | (410)bps | 62.5% | 63.9% | (140)bps | |||||||||
Used Vehicles | 11.5% | 10.1% | +140bps | 11.0% | 9.4% | +160bps | |||||||||
Finance and Insurance, Net | 0.7% | 0.7% | —bps | 0.7% | 0.7% | —bps | |||||||||
Service and Parts | 24.1% | 20.7% | +340bps | 24.7% | 23.2% | +150bps | |||||||||
Wholesale and Other | 1.3% | 2.0% | (70)bps | 1.1% | 2.8% | (170)bps | |||||||||
Total | 100.0% | 100.0% | 100.0% | 100.0% | |||||||||||
Retail Commercial Truck Gross Profit Mix Percentages: | |||||||||||||||
New Vehicles | 20.3% | 20.3% | —bps | 19.2% | 17.9% | +130bps | |||||||||
Used Vehicles | 13.2% | 6.2% | +700bps | 11.5% | 0.1% | +1,140bps | |||||||||
Finance and Insurance, Net | 4.2% | 5.1% | (90)bps | 4.0% | 5.2% | (120)bps | |||||||||
Service and Parts | 59.0% | 65.9% | (690)bps | 61.6% | 73.8% | (1,220)bps | |||||||||
Wholesale and Other | 3.3% | 2.5% | +80bps | 3.7% | 3.0% | +70bps | |||||||||
Total | 100.0% | 100.0% | 100.0% | 100.0% | |||||||||||
nm – not meaningful | |||||||||||||||
PENSKE AUTOMOTIVE GROUP, INC. | |||||||||||||||
Retail Commercial Truck Operations Same-Store | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||
Retail Commercial Truck Same-Store Units: | |||||||||||||||
New Retail | 2,970 | 3,254 | (8.7)% | 10,983 | 11,324 | (3.0)% | |||||||||
Used Retail | 704 | 1,071 | (34.3)% | 3,191 | 3,826 | (16.6)% | |||||||||
Total | 3,674 | 4,325 | (15.1)% | 14,174 | 15,150 | (6.4)% | |||||||||
Retail Commercial Truck Same-Store Revenue: (Amounts in Millions) | |||||||||||||||
New Vehicles | $ | 352.6 | $ | 385.5 | (8.5)% | $ | 1,322.3 | $ | 1,315.9 | 0.5% | |||||
Used Vehicles | 68.7 | 58.8 | 16.8% | 251.3 | 194.2 | 29.4% | |||||||||
Finance and Insurance, Net | 4.6 | 4.0 | 15.0% | 16.1 | 14.5 | 11.0% | |||||||||
Service and Parts | 139.2 | 120.0 | 16.0% | 537.6 | 478.1 | 12.4% | |||||||||
Wholesale and Other | 7.5 | 11.1 | (32.4)% | 28.1 | 58.2 | (51.7)% | |||||||||
Total Revenue | $ | 572.6 | $ | 579.4 | (1.2)% | $ | 2,155.4 | $ | 2,060.9 | 4.6% | |||||
Retail Commercial Truck Same-Store Gross Profit: (Amounts in Millions) | |||||||||||||||
New Vehicles | $ | 20.8 | $ | 16.0 | 30.0% | $ | 72.8 | $ | 50.4 | 44.4% | |||||
Used Vehicles | 13.4 | 4.9 | 173.5% | 44.3 | 0.4 | nm | |||||||||
Finance and Insurance, Net | 4.6 | 4.0 | 15.0% | 16.1 | 14.5 | 11.0% | |||||||||
Service and Parts | 59.2 | 51.9 | 14.1% | 228.3 | 207.3 | 10.1% | |||||||||
Wholesale and Other | 3.8 | 1.9 | 100.0% | 14.6 | 8.0 | 82.5% | |||||||||
Total Gross Profit | $ | 101.8 | $ | 78.7 | 29.4% | $ | 376.1 | $ | 280.6 | 34.0% | |||||
Retail Commercial Truck Same-Store Revenue Per Vehicle Retailed: | |||||||||||||||
New Vehicles | $ | 118,729 | $ | 118,471 | 0.2% | $ | 120,399 | $ | 116,201 | 3.6% | |||||
Used Vehicles | 97,569 | 54,878 | 77.8% | 78,766 | 50,747 | 55.2% | |||||||||
Retail Commercial Truck Same-Store Gross Profit Per Vehicle Retailed: | |||||||||||||||
New Vehicles | $ | 6,993 | $ | 4,911 | 42.4% | $ | 6,628 | $ | 4,451 | 48.9% | |||||
Used Vehicles | 19,102 | 4,578 | 317.3% | 13,872 | 97 | nm | |||||||||
Finance and Insurance | 1,253 | 925 | 35.5% | 1,135 | 959 | 18.4% | |||||||||
Retail Commercial Truck Same-Store Gross Margin: | |||||||||||||||
New Vehicles | 5.9% | 4.2% | +170bps | 5.5% | 3.8% | +170bps | |||||||||
Used Vehicles | 19.5% | 8.3% | +1,120bps | 17.6% | 0.2% | +1,740bps | |||||||||
Service and Parts | 42.5% | 43.3% | (80)bps | 42.5% | 43.4% | (90)bps | |||||||||
Total Gross Margin | 17.8% | 13.6% | +420bps | 17.4% | 13.6% | +380bps | |||||||||
Retail Commercial Truck Same-Store Revenue Mix Percentages: | |||||||||||||||
New Vehicles | 61.6% | 66.5% | (490)bps | 61.3% | 63.9% | (260)bps | |||||||||
Used Vehicles | 12.0% | 10.1% | +190bps | 11.7% | 9.4% | +230bps | |||||||||
Finance and Insurance, Net | 0.8% | 0.7% | +10bps | 0.7% | 0.7% | —bps | |||||||||
Service and Parts | 24.3% | 20.7% | +360bps | 24.9% | 23.2% | +170bps | |||||||||
Wholesale and Other | 1.3% | 2.0% | (70)bps | 1.4% | 2.8% | (140)bps | |||||||||
Total | 100.0% | 100.0% | 100.0% | 100.0% | |||||||||||
Retail Commercial Truck Same-Store Gross Profit Mix Percentages: | |||||||||||||||
New Vehicles | 20.4% | 20.3% | +10bps | 19.4% | 18.0% | +140bps | |||||||||
Used Vehicles | 13.2% | 6.2% | +700bps | 11.8% | 0.1% | +1,170bps | |||||||||
Finance and Insurance, Net | 4.5% | 5.1% | (60)bps | 4.3% | 5.2% | (90)bps | |||||||||
Service and Parts | 58.2% | 65.9% | (770)bps | 60.7% | 73.9% | (1,320)bps | |||||||||
Wholesale and Other | 3.7% | 2.5% | +120bps | 3.8% | 2.8% | +100bps | |||||||||
Total | 100.0% | 100.0% | 100.0% | 100.0% | |||||||||||
nm – not meaningful | |||||||||||||||
PENSKE AUTOMOTIVE GROUP, INC. | |||||||
Supplemental Data | |||||||
(Unaudited) | |||||||
Three Months Ended | Twelve Months Ended | ||||||
December 31, | December 31, | ||||||
2021 | 2020 | 2021 | 2020 | ||||
Retail Automotive Revenue Mix: | |||||||
Premium: | |||||||
BMW / MINI | 26% | 24% | 24% | 23% | |||
Audi | 10% | 12% | 12% | 12% | |||
Mercedes-Benz | 10% | 10% | 10% | 10% | |||
Land Rover / Jaguar | 7% | 9% | 8% | 9% | |||
Porsche | 9% | 8% | 7% | 7% | |||
Ferrari / Maserati | 3% | 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 | 72% | 73% | 71% | 71% | |||
Volume Non-U.S.: | |||||||
Toyota | 10% | 11% | 11% | 11% | |||
Honda | 5% | 5% | 6% | 6% | |||
Volkswagen | 2% | 2% | 2% | 2% | |||
Nissan | 1% | 1% | 1% | 1% | |||
Others | 2% | 2% | 1% | 2% | |||
Total Volume Non-U.S. | 20% | 21% | 21% | 22% | |||
U.S.: | |||||||
General Motors / Chrysler | 1% | 1% | 1% | 1% | |||
CarShop Used Vehicle Centers | 7% | 5% | 7% | 6% | |||
Total | 100% | 100% | 100% | 100% | |||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
Capital Expenditures / Stock Repurchases: | 2021 | 2020 | 2021 | 2020 | |||||||||||
(Amounts in Millions) | |||||||||||||||
Capital expenditures | $ | 91.4 | $ | 71.6 | $ | 248.9 | $ | 185.9 | |||||||
Cash paid for acquisitions, net of cash acquired | $ | 153.8 | $ | — | $ | 431.8 | $ | — | |||||||
Stock repurchases: | |||||||||||||||
Aggregate purchase price | $ | 73.7 | $ | — | $ | 293.5 | $ | 34.4 | |||||||
Shares repurchased | 0.8 | — | 3.3 | 1.0 | |||||||||||
Balance Sheet and Other Highlights: | December 31, 2021 | December 31, 2020 | |||
(Amounts in Millions) | |||||
Cash and Cash Equivalents | $ | 100.7 | $ | 49.5 | |
Inventories | $ | 3,129.0 | $ | 3,425.6 | |
Total Floor Plan Notes Payable | $ | 2,554.7 | $ | 3,144.3 | |
Total Long-Term Debt | $ | 1,474.0 | $ | 1,689.6 | |
Equity | $ | 4,095.0 | $ | 3,326.1 | |
Debt to Total Capitalization Ratio | 26.4% | 33.7% | |||
Leverage Ratio (1) | 0.8 x | 1.8 x | |||
New vehicle days' supply | 17 days | 50 days | |||
Used vehicle days' supply | 60 days | 48 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 twelve months ended December 31, 2021, and 2020: | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
(Amounts in Millions) | December 31, | December 31, | |||||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||||||||
Income from Continuing Operations | $ | 310.4 | $ | 200.1 | 55.1% | $ | 1,186.5 | $ | 543.2 | 118.4% | |||||
Tax legislation changes (1) (2) | 1.0 | 4.0 | nm | 10.8 | (11.4) | nm | |||||||||
Net gain on dealership sales | — | (9.4) | nm | — | (3.3) | nm | |||||||||
Loss on investment for revaluation (3) | 9.1 | — | nm | 9.1 | — | nm | |||||||||
Debt redemption costs (4) | — | 5.1 | nm | 12.6 | 6.4 | nm | |||||||||
Adjusted Income from Continuing Operations (5) | $ | 320.5 | $ | 199.9 | 60.3% | $ | 1,219.0 | $ | 534.9 | 127.9% | |||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||||||||
Earnings Per Share from Continuing Operations | $ | 3.97 | $ | 2.49 | 59.4% | $ | 14.88 | $ | 6.74 | 120.8% | |||||
Tax legislation changes (1) (2) | 0.01 | 0.05 | nm | 0.13 | (0.14) | nm | |||||||||
Net gain on dealership sales | — | (0.12) | nm | — | (0.04) | nm | |||||||||
Loss on investment for revaluation (3) | 0.12 | — | nm | 0.11 | — | nm | |||||||||
Debt redemption costs (4) | — | 0.06 | nm | 0.16 | 0.08 | nm | |||||||||
Adjusted Earnings Per Share from Continuing Operations (5) | $ | 4.10 | $ | 2.49 | 64.7% | $ | 15.28 | $ | 6.64 | 130.1% | |||||
The following table reconciles income from continuing operations before taxes (EBT) to adjusted income from continuing operations before taxes (EBT) for the three and twelve months ending December 31, 2021, and 2020: | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
(Amounts in Millions) | December 31, | December 31, | |||||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||||||||
Income from Continuing Operations Before Taxes | $ | 420.3 | $ | 263.3 | 59.6% | $ | 1,607.7 | $ | 707.6 | 127.2% | |||||
Net gain on dealership sales | — | (12.7) | nm | — | (5.2) | nm | |||||||||
Loss on investment for revaluation (3) | 11.4 | — | nm | 11.4 | — | nm | |||||||||
Debt redemption costs (4) | — | 6.9 | nm | 17.0 | 8.6 | nm | |||||||||
Adjusted Income from Continuing Operations Before Taxes | $ | 431.7 | $ | 257.5 | 67.7% | $ | 1,636.1 | $ | 711.0 | 130.1% | |||||
____________________ | |
(1) | For the three and twelve months ended December 31, 2020, related to a net income tax (expense) benefit of ($4.0) million and $11.4 million, or ($0.05) per share and $0.14 per share, respectively, from various U.S. and foreign tax legislation changes |
(2) | For the three and twelve months ended December 31, 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 |
(3) | Loss on investment for the revaluation of the Nicole Group |
(4) | Related to expenses in connection with the redemption of our 5.5% senior subordinated notes due 2026 in 2021 and the redemption of our 5.75% senior subordinated notes due 2022 and our $300 million 5.375% senior subordinated notes due 2024 in 2020 |
(5) | May not sum due to rounding |
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 twelve months ended December 31, 2021, and 2020: | ||||||||||
Three Months Ended | ||||||||||
December 31, | 2021 vs. 2020 | |||||||||
(Amounts in Millions) | 2021 | 2020 | Change | % Change | ||||||
Net Income | $ | 312.9 | $ | 201.4 | $ | 111.5 | 55.4% | |||
Add: Depreciation | 31.8 | 30.1 | 1.7 | 5.6% | ||||||
Other Interest Expense | 14.8 | 21.8 | (7.0) | (32.1)% | ||||||
Income Taxes | 108.3 | 62.0 | 46.3 | 74.7% | ||||||
Income from Discontinued Operations, net of tax | (0.9) | (0.1) | (0.8) | nm | ||||||
EBITDA | $ | 466.9 | $ | 315.2 | $ | 151.7 | 48.1% | |||
Less: Net gain on dealership sales | — | (12.7) | 12.7 | nm | ||||||
Add: Loss on investment for revaluation (1) | 11.4 | — | 11.4 | nm | ||||||
Add: Debt redemption costs (2) | — | 6.9 | (6.9) | nm | ||||||
Adjusted EBITDA | $ | 478.3 | $ | 309.4 | $ | 168.9 | 54.6% | |||
Twelve Months Ended | ||||||||||
December 31, | 2021 vs. 2020 | |||||||||
(Amounts in Millions) | 2021 | 2020 | Change | % Change | ||||||
Net Income | $ | 1,192.7 | $ | 545.3 | $ | 647.4 | 118.7% | |||
Add: Depreciation | 121.5 | 115.5 | 6.0 | 5.2% | ||||||
Other Interest Expense | 68.6 | 111.0 | (42.4) | (38.2)% | ||||||
Income Taxes | 416.3 | 162.7 | 253.6 | 155.9% | ||||||
Income from Discontinued Operations, net of tax | (1.3) | (0.4) | (0.9) | nm | ||||||
EBITDA | $ | 1,797.8 | $ | 934.1 | $ | 863.7 | 92.5% | |||
Less: Net gain on dealership sales | — | (5.2) | 5.2 | nm | ||||||
Add: Loss on investment for revaluation (1) | 11.4 | — | 11.4 | nm | ||||||
Add: Debt redemption costs (2) | 17.0 | 8.6 | 8.4 | nm | ||||||
Adjusted EBITDA | $ | 1,826.2 | $ | 937.5 | $ | 888.7 | 94.8% | |||
nm – not meaningful | |
(1) | Loss on investment for the revaluation of the Nicole Group |
(2) | Related to expenses in connection with the redemption of our 5.5% senior subordinated notes due 2026 in 2021 and the redemption of our 5.75% senior subordinated notes due 2022 and our $300 million 5.375% senior subordinated notes due 2024 in 2020 |
PENSKE AUTOMOTIVE GROUP, INC. | |||||
Consolidated Non-GAAP Reconciliations | |||||
(Unaudited) | |||||
The following table reconciles the leverage ratio as of December 31, 2021, and December 31, 2020: | |||||
Twelve | Twelve | ||||
Months Ended | Months Ended | ||||
(Amounts in Millions) | December 31, 2021 | December 31, 2020 | |||
Net Income | $ 1,192.7 | $ 545.3 | |||
Add: Depreciation | 121.5 | 115.5 | |||
Other Interest Expense | 68.6 | 111.0 | |||
Income Taxes | 416.3 | 162.7 | |||
Income from Discontinued Operations, net of tax | (1.3) | (0.4) | |||
EBITDA | $ 1,797.8 | $ 934.1 | |||
Total Non-Vehicle Long-Term Debt | $ 1,474.0 | $ 1,689.6 | |||
Leverage Ratio | 0.8 x | 1.8 x | |||
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SOURCE Penske Automotive Group, Inc.
