Penske Automotive Reports Record Results
BLOOMFIELD HILLS, Mich., Feb. 10, 2021/PRNewswire/ -- Penske Automotive Group, Inc. (NYSE:PAG), a diversified international transportation services company, today announced fourth quarter and full year 2020 results. For the three months ended December 31, 2020, the company reported a 97% increase in income from continuing operations attributable to common shareholders to $200.1 million, and a 99% increase in related earnings per share to $2.49. This compares to income from continuing operations attributable to common shareholders of $101.6 million, or $1.25 per share in the prior year. Fourth quarter income from continuing operations and related earnings per share include a net benefit of $0.2 million, related to a gain on dealership sales, partially offset by a loss on debt extinguishment and U.S. and foreign tax legislation changes. Excluding this net benefit, adjusted income from continuing operations increased 96.8% to $199.9 million, and related earnings per share increased 99.2% to $2.49. Foreign exchange positively impacted earnings per share by $0.02. Revenue was $5.8 billion compared to $5.9 billion in the same period last year.
Commenting on the company's results, Chairman Roger Penske said, "I am very pleased to report 97% earnings growth for the fourth quarter. Our results were driven by same-store retail automotive margin expansion, growth in our commercial truck dealership profitability, and continued strong performance from Penske Transportation Solutions. Coupled with the benefit from expense reductions, adjusted selling, general, and administrative expenses as a percentage of gross profit declined 800 basis-points. Additionally, in 2020 our business generated $708 million in earnings before taxes, an all-time record. Our strong cash flow during the year provided us with the opportunity to paydown $670 million of non-vehicle long-term debt and reduce our debt to total capitalization to 34% from 46%."
For the twelve months ended December 31, 2020, the company reported income from continuing operations attributable to common shareholders of $543.2 million, or $6.74 per share, compared to $435.5 million, or $5.28 per share in the prior year. Foreign exchange positively impacted earnings per share by $0.03. Revenue was $20.4 billion compared to $23.2 billion in the same period last year. For the twelve months ended December 31, 2020, income from continuing operations and related earnings per share include a net benefit of $8.3 million, or $0.10 per share, from an income tax benefit related to various U.S. and foreign tax legislation changes and a gain on dealership sales, partially offset by a loss on debt extinguishment. Excluding this net benefit, adjusted income from continuing operations increased 22.8% to $534.9 million, and related earnings per share increased 25.8% to $6.64.
Operational Highlights – Fourth Quarter 2020
- Retail automotive same-store revenue increased 0.6%
- Retail automotive same-store gross profit increased 5.7%
- Retail automotive earnings before taxes increased 126.5%
- Retail automotive same-store variable gross profit per unit retailed increased 24.5%
- Total gross margin increased 80 basis points to 15.5%
- Adjusted SG&A expenses declined $46.6 million and SG&A as a percentage of gross profit declined 800 basis points to 71.1%
Long-Term Debt
During 2020, we reduced our long-term debt by $670 million. We repaid in full, at scheduled maturity, our $300 million 3.75% senior subordinated notes and redeemed our $300 million 5.375% senior subordinated notes due in 2024. We also redeemed our $550 million 5.75% senior subordinated notes due 2022 with the proceeds of the newly issued $550 million in aggregate principal amount 3.50% senior subordinated notes due 2025. We expect the payoff and refinancing of these notes will generate annualized interest expense savings of approximately $27 million. As of December 31, 2020, non-vehicle long-term debt to total capitalization was reduced to 34% from 46% at the end of the prior year.
Used Vehicle SuperCenters
Penske Automotive Group opened a greenfield used vehicle SuperCenter site in Nottingham, U.K. during the fourth quarter and now operates seventeen Used Vehicle SuperCenters. For the three months ended December 31, 2020, same-store variable gross profit per unit retailed increased 20.4% to $2,351. Retail unit sales decreased by 22.6% to 11,923 while revenue decreased by 16.4% to $244.7 million largely as a result of COVID-related government-mandated closures in the U.K. For the twelve months ended December 31, 2020, SuperCenter retail unit sales decreased by 25.0% to 53,207 and revenue decreased by 17.0% to $1.0 billion.
Retail Commercial Truck Dealerships
Penske Automotive Group operates twenty-five medium and heavy-duty truck dealership locations in the U.S. and Canada offering primarily Freightliner and Western Star brands. For the three months ended December 31, 2020, earnings before taxes were $26.5 million compared to $21.0 million in the same period last year. During the quarter, total units retailed increased 16.0%, including a 1% increase in new units and a 106% increase in used units. For the twelve months ended December 31, 2020, earnings before taxes were $78.2 million compared to $86.5 million in the same period last year.
Penske Transportation Solutions
Penske Transportation Solutions ("PTS") is a leading provider of full-service truck leasing, truck rental, contract maintenance, and logistics services and is an integral part of the North American supply chain, providing supply chain and transportation services to its customers. The company has a 28.9% ownership interest in the PTS partnership and accounts for its ownership interest using the equity method of accounting. In addition to equity income, the company receives cash distributions and may recognize cash tax benefits from time to time. For the three and twelve months ended December 31, 2020, the company recorded $56.5 million and $164.5 million in earnings compared to $36.4 million and $142.4 million for the same period last year. The 55.2% increase in the fourth quarter was principally driven by improved operating results in full-service leasing and logistics and a reduction in operating expenses.
Growth and Expansion
Currently, we are constructing new franchised dealerships and have identified acquisition targets which are expected to add $600 million in estimated annualized revenue. Specifically, in January, we opened our second Porsche dealership in the Washington D.C. market that is expected to generate $50 million in annualized revenue. We also have an Audi dealership under construction in Southern California and a Honda dealership under construction in Texas. Both are expected to open by the end of the year and collectively generate approximately $100 million in annualized revenue.
During the fourth quarter we opened one used vehicle SuperCenter in Nottingham, U.K. As we look out across the next three years, our goal is to grow the used SuperCenter operations from 17 locations to 40 by the end of 2023. We expect our used SuperCenters operations will generate at least 150,000 in unit sales and $2.5 to $3.0 billion in total revenue, more than doubling the size of the existing business while generating earnings before taxes of approximately $100 million.
Dividend and Share Repurchases
On January 26, 2021, we announced an increase in the quarterly dividend to $0.43 per share, payable on March 1, 2021 to shareholders of record as of February 10, 2021.
For the twelve months ended December 31, 2020, the company repurchased 1,027,736 shares for $34.4 million. Approximately $170.6 million remains available to repurchase 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 2020 on Wednesday, February 10, 2021, at 2:00 p.m. Eastern Standard Time. To listen to the conference call, participants must dial (866) 394-1455 – [International, please dial (516) 575-8644] using access code 8644058. 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 2020 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 an international transportation services company that operates automotive and commercial truck dealerships principally in the United States, the United Kingdom, Canada, and Western Europe and distributes commercial vehicles, diesel engines, gas engines, power systems, and related parts and services principally in Australia and New Zealand. PAG is a member of the Fortune 500 and Russell 1000 and 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, amortization ("EBITDA"), adjusted earnings before interest, taxes, depreciation, and amortization, and adjusted selling, general, and administrative expenses. 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 liquidity, and assessment of business conditions in light of the COVID-19 pandemic. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others: the duration, severity and resolution of the COVID-19 pandemic, government mandated restrictions on our business in light of COVID-19 or otherwise, economic conditions generally, conditions in the credit markets, changes in interest rates and foreign currency exchange rates, changes in tariff rates, new rules in place after the recent Brexit accord between the European Union and the U.K. could slow parts originating in the U.K. or Europe for distribution to our dealerships, adverse conditions affecting a particular manufacturer, including the adverse impact to the vehicle and parts supply chain due to limited vehicle availability due to the COVID-19 pandemic, the shortage of automotive semiconductor chips, 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, 2019, 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:
J.D. Carlson | Anthony R. Pordon |
Executive Vice President and | Executive Vice President Investor Relations |
Chief Financial Officer | and Corporate Development |
Penske Automotive Group, Inc. | Penske Automotive Group, Inc. |
248-648-2810 | 248-648-2540 |
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, | ||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||
Revenue | $ | 5,812.1 | $ | 5,881.4 | (1.2) | % | $ | 20,443.9 | $ | 23,179.4 | (11.8) | % | |||||||
Cost of Sales | 4,913.7 | 5,014.9 | (2.0) | % | 17,259.4 | 19,723.9 | (12.5) | % | |||||||||||
Gross Profit | $ | 898.4 | $ | 866.5 | 3.7 | % | $ | 3,184.5 | $ | 3,455.5 | (7.8) | % | |||||||
SG&A Expenses | 625.8 | 685.1 | (8.7) | % | 2,364.5 | 2,693.2 | (12.2) | % | |||||||||||
Depreciation | 30.1 | 28.6 | 5.2 | % | 115.5 | 109.6 | 5.4 | % | |||||||||||
Operating Income | $ | 242.5 | $ | 152.8 | 58.7 | % | $ | 704.5 | $ | 652.7 | 7.9 | % | |||||||
Floor Plan Interest Expense | (8.9) | (20.3) | (56.2) | % | (46.3) | (84.5) | (45.2) | % | |||||||||||
Other Interest Expense | (28.7) | (31.0) | (7.4) | % | (119.6) | (124.2) | (3.7) | % | |||||||||||
Equity in Earnings of Affiliates | 58.4 | 37.9 | 54.1 | % | 169.0 | 147.5 | 14.6 | % | |||||||||||
Income from Continuing Operations Before Income Taxes | $ | 263.3 | $ | 139.4 | 88.9 | % | $ | 707.6 | $ | 591.5 | 19.6 | % | |||||||
Income Taxes | (62.0) | (38.1) | 62.7 | % | (162.7) | (156.7) | 3.8 | % | |||||||||||
Income from Continuing Operations | $ | 201.3 | $ | 101.3 | 98.7 | % | $ | 544.9 | $ | 434.8 | 25.3 | % | |||||||
Income from Discontinued Operations, net of tax | 0.1 | — | nm | 0.4 | 0.3 | nm | |||||||||||||
Net Income | $ | 201.4 | $ | 101.3 | 98.8 | % | $ | 545.3 | $ | 435.1 | 25.3 | % | |||||||
Less: Income (Loss) Attributable to Non-Controlling Interests | 1.2 | (0.3) | nm | 1.7 | (0.7) | nm | |||||||||||||
Net Income Attributable to Common Shareholders | $ | 200.2 | $ | 101.6 | 97.0 | % | $ | 543.6 | $ | 435.8 | 24.7 | % | |||||||
Amounts Attributable to Common Shareholders: | |||||||||||||||||||
Reported Income from Continuing Operations | $ | 201.3 | $ | 101.3 | 98.7 | % | $ | 544.9 | $ | 434.8 | 25.3 | % | |||||||
Less: Income (Loss) Attributable to Non-Controlling Interests | 1.2 | (0.3) | nm | 1.7 | (0.7) | nm | |||||||||||||
Income from Continuing Operations, net of tax | $ | 200.1 | $ | 101.6 | 96.9 | % | $ | 543.2 | $ | 435.5 | 24.7 | % | |||||||
Income from Discontinued Operations, net of tax | 0.1 | — | nm | 0.4 | 0.3 | nm | |||||||||||||
Net Income Attributable to Common Shareholders | $ | 200.2 | $ | 101.6 | 97.0 | % | $ | 543.6 | $ | 435.8 | 24.7 | % | |||||||
Income from Continuing Operations Per Share | $ | 2.49 | $ | 1.25 | 99.2 | % | $ | 6.74 | $ | 5.28 | 27.7 | % | |||||||
Income Per Share | $ | 2.49 | $ | 1.25 | 99.2 | % | $ | 6.74 | $ | 5.28 | 27.7 | % | |||||||
Weighted Average Shares Outstanding | 80.4 | 81.1 | (0.9) | % | 80.6 | 82.5 | (2.3) | % | |||||||||||
nm – not meaningful | |||||||||||||||||||
PENSKE AUTOMOTIVE GROUP, INC. | ||||||
Consolidated Condensed Balance Sheets | ||||||
(Amounts In Millions) | ||||||
(Unaudited) | ||||||
December 31, | December 31, | |||||
2020 | 2019 | |||||
Assets: | ||||||
Cash and Cash Equivalents | $ | 49.5 | $ | 28.1 | ||
Accounts Receivable, Net | 806.9 | 960.3 | ||||
Inventories | 3,425.6 | 4,260.7 | ||||
Other Current Assets | 126.8 | 85.0 | ||||
Total Current Assets | 4,408.8 | 5,334.1 | ||||
Property and Equipment, Net | 2,404.4 | 2,366.4 | ||||
Operating Lease Right-of-Use Assets | 2,416.5 | 2,360.5 | ||||
Intangibles | 2,491.8 | 2,463.2 | ||||
Other Long-Term Assets | 1,525.7 | 1,418.5 | ||||
Total Assets | $ | 13,247.2 | $ | 13,942.7 | ||
Liabilities and Equity: | ||||||
Floor Plan Notes Payable | $ | 1,780.5 | $ | 2,412.5 | ||
Floor Plan Notes Payable – Non-Trade | 1,363.8 | 1,594.0 | ||||
Accounts Payable | 675.4 | 638.8 | ||||
Accrued Expenses and Other Current Liabilities | 767.2 | 701.9 | ||||
Current Portion Long-Term Debt | 87.5 | 103.3 | ||||
Liabilities Held for Sale | 0.5 | 0.5 | ||||
Total Current Liabilities | 4,674.9 | 5,451.0 | ||||
Long-Term Debt | 1,602.1 | 2,257.0 | ||||
Long-Term Operating Lease Liabilities | 2,350.3 | 2,301.2 | ||||
Other Long-Term Liabilities | 1,293.8 | 1,121.9 | ||||
Total Liabilities | 9,921.1 | 11,131.1 | ||||
Equity | 3,326.1 | 2,811.6 | ||||
Total Liabilities and Equity | $ | 13,247.2 | $ | 13,942.7 | ||
Supplemental Balance Sheet Information | ||||||
New vehicle days' supply | 50 | 71 | ||||
Used vehicle days' supply | 48 | 52 | ||||
PENSKE AUTOMOTIVE GROUP, INC. | |||||||
Consolidated Condensed Statements of Cash Flow | |||||||
Amounts in Millions | |||||||
(Unaudited) | |||||||
Twelve Months Ended | |||||||
December 31, | |||||||
2020 | 2019 | ||||||
Operating Activities: | |||||||
Net cash provided by continuing operating activities | 1,201.5 | 518.3 | |||||
Investing Activities: | |||||||
Purchase of equipment and improvements | (185.9) | (245.3) | |||||
Proceeds from sale of dealerships | 40.6 | 22.8 | |||||
Proceeds from sale-leaseback transactions | — | 18.9 | |||||
Proceeds from sale of equipment and improvements | 19.8 | 8.6 | |||||
Acquisitions net, including repayment of sellers' floor plan notes payable of $0 and $138.5, respectively | — | (326.9) | |||||
Other | (11.0) | (10.8) | |||||
Net cash used in continuing investing activities | (136.5) | (532.7) | |||||
Financing Activities: | |||||||
Proceeds from borrowings under U.S. credit agreement revolving credit line | 1,797.0 | 1,808.0 | |||||
Repayments under U.S. credit agreement revolving credit line | (1,734.0) | (1,793.0) | |||||
Issuance of 3.50% senior subordinated notes | 550.0 | — | |||||
Repayment of 3.75% senior subordinated notes | (300.0) | — | |||||
Repayment of 5.375% senior subordinated notes | (300.0) | — | |||||
Repayment of 5.75% senior subordinated notes | (550.0) | — | |||||
Net (repayments) borrowings of other long-term debt | (144.4) | 115.4 | |||||
Net (repayments) borrowings of floor plan notes payable — non-trade | (230.2) | 177.5 | |||||
Payments for contingent consideration | (31.6) | — | |||||
Repurchases of common stock | (29.4) | (169.2) | |||||
Dividends | (68.1) | (130.8) | |||||
Payment of debt issuance costs | (8.1) | (0.4) | |||||
Other | (5.1) | (4.9) | |||||
Net cash (used in) provided by continuing financing activities | (1,053.9) | 2.6 | |||||
Net cash provided by discontinued operations | 0.3 | 0.3 | |||||
Effect of exchange rate changes on cash and cash equivalents | 10.0 | 0.2 | |||||
Net change in cash and cash equivalents | 21.4 | (11.3) | |||||
Cash and cash equivalents, beginning of period | 28.1 | 39.4 | |||||
Cash and cash equivalents, end of period | $ | 49.5 | $ | 28.1 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid for: | |||||||
Interest | $ | 168.5 | $ | 204.9 | |||
Income taxes | 17.9 | 92.4 | |||||
Non cash activities: | |||||||
Contingent consideration | $ | — | 10.6 | ||||
PENSKE AUTOMOTIVE GROUP, INC. | |||||||||||||
Consolidated Operations | |||||||||||||
Selected Data | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||
December 31, | December 31, | ||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||
Geographic Revenue Mix: | |||||||||||||
North America | 61.3 | % | 62.4 | % | 60.3 | % | 59.3 | % | |||||
U.K. | 29.9 | % | 29.3 | % | 31.0 | % | 32.6 | % | |||||
Other International | 8.8 | % | 8.3 | % | 8.7 | % | 8.1 | % | |||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||
Revenue: (Amounts in Millions) | |||||||||||||
Retail Automotive | $ | 5,100.7 | $ | 5,162.7 | $ | 17,928.8 | $ | 20,615.8 | |||||
Retail Commercial Trucks | 579.4 | 599.1 | 2,060.9 | 2,050.5 | |||||||||
Commercial Vehicles Australia/Power Systems and Other | 132.0 | 119.6 | 454.2 | 513.1 | |||||||||
Total | $ | 5,812.1 | $ | 5,881.4 | $ | 20,443.9 | $ | 23,179.4 | |||||
Gross Profit: (Amounts in Millions) | |||||||||||||
Retail Automotive | $ | 787.2 | $ | 755.1 | $ | 2,781.3 | $ | 3,038.9 | |||||
Retail Commercial Trucks | 78.8 | 78.3 | 280.9 | 277.8 | |||||||||
Commercial Vehicles Australia/Power Systems and Other | 32.4 | 33.1 | 122.3 | 138.8 | |||||||||
Total | $ | 898.4 | $ | 866.5 | $ | 3,184.5 | $ | 3,455.5 | |||||
Gross Margin: | |||||||||||||
Retail Automotive | 15.4 | % | 14.6 | % | 15.5 | % | 14.7 | % | |||||
Retail Commercial Trucks | 13.6 | % | 13.1 | % | 13.6 | % | 13.5 | % | |||||
Commercial Vehicles Australia/Power Systems and Other | 24.5 | % | 27.7 | % | 26.9 | % | 27.1 | % | |||||
Total | 15.5 | % | 14.7 | % | 15.6 | % | 14.9 | % | |||||
Three Months Ended | Twelve Months Ended | |||||||||
December 31, | December 31, | |||||||||
2020 | 2019 | 2020 | 2019 | |||||||
Operating Items as a Percentage of Revenue: | ||||||||||
Gross Profit | 15.5 | % | 14.7 | % | 15.6 | % | 14.9 | % | ||
Selling, General and Administrative Expenses | 10.8 | % | 11.6 | % | 11.6 | % | 11.6 | % | ||
Operating Income | 4.2 | % | 2.6 | % | 3.4 | % | 2.8 | % | ||
Income from Continuing Operations Before Income Taxes | 4.5 | % | 2.4 | % | 3.5 | % | 2.6 | % | ||
Operating Items as a Percentage of Total Gross Profit: | ||||||||||
Selling, General and Administrative Expenses | 69.7 | % | 79.1 | % | 74.3 | % | 77.9 | % | ||
Operating Income | 27.0 | % | 17.6 | % | 22.1 | % | 18.9 | % | ||
Three Months Ended | Twelve Months Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
(Amounts in Millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||
EBITDA (1) | $ | 322.1 | $ | 199.0 | $ | 942.7 | $ | 825.3 | ||||||
Floorplan Credits | $ | 11.8 | $ | 9.9 | $ | 39.1 | $ | 37.2 | ||||||
Rent Expense | $ | 58.7 | $ | 58.6 | $ | 231.8 | $ | 232.0 | ||||||
Stock Repurchases | $ | — | $ | — | $ | 34.4 | $ | 174.1 | ||||||
(1) | See the following Non-GAAP reconciliation table. |
PENSKE AUTOMOTIVE GROUP, INC. | |||||||||
Retail Automotive Operations | |||||||||
Selected Data – Revenue and Gross Profit Mix | |||||||||
(Unaudited) | |||||||||
Three Months Ended | Twelve Months Ended | ||||||||
December 31, | December 31, | ||||||||
2020 | 2019 | 2020 | 2019 | ||||||
Retail Automotive Revenue Mix: | |||||||||
Premium: | |||||||||
BMW / MINI | 24 | % | 24 | % | 23 | % | 23 | % | |
Audi | 12 | % | 12 | % | 12 | % | 12 | % | |
Mercedes-Benz | 10 | % | 10 | % | 10 | % | 10 | % | |
Land Rover / Jaguar | 9 | % | 8 | % | 9 | % | 9 | % | |
Porsche | 8 | % | 7 | % | 7 | % | 6 | % | |
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 | 73 | % | 71 | % | 71 | % | 70 | % | |
Volume Non-U.S.: | |||||||||
Toyota | 11 | % | 10 | % | 11 | % | 10 | % | |
Honda | 5 | % | 6 | % | 6 | % | 6 | % | |
Volkswagen | 2 | % | 3 | % | 2 | % | 4 | % | |
Nissan | 1 | % | 1 | % | 1 | % | 1 | % | |
Others | 2 | % | 2 | % | 2 | % | 2 | % | |
Total Volume Non-U.S. | 21 | % | 22 | % | 22 | % | 23 | % | |
U.S.: | |||||||||
General Motors / Chrysler / Ford | 1 | % | 1 | % | 1 | % | 1 | % | |
Stand-Alone Used | 5 | % | 6 | % | 6 | % | 6 | % | |
Total | 100 | % | 100 | % | 100 | % | 100 | % | |
Retail Automotive Geographic Revenue Mix: | |||||||||
U.S. | 58 | % | 60 | % | 57 | % | 57 | % | |
U.K. | 34 | % | 33 | % | 36 | % | 37 | % | |
Other International | 8 | % | 7 | % | 7 | % | 6 | % | |
Total | 100 | % | 100 | % | 100 | % | 100 | % | |
Retail Automotive Geographic Gross Profit Mix: | |||||||||
U.S. | 62 | % | 63 | % | 63 | % | 61 | % | |
U.K. | 31 | % | 31 | % | 32 | % | 33 | % | |
Other International | 7 | % | 6 | % | 5 | % | 6 | % | |
Total | 100 | % | 100 | % | 100 | % | 100 | % | |
PENSKE AUTOMOTIVE GROUP, INC. | |||||||||||||||||||
Retail Automotive Operations | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||
Retail Automotive Units: | |||||||||||||||||||
New Retail | 52,041 | 55,974 | (7.0) | % | 178,437 | 222,704 | (19.9) | % | |||||||||||
Used Retail | 57,013 | 65,284 | (12.7) | % | 233,469 | 284,190 | (17.8) | % | |||||||||||
Total | 109,054 | 121,258 | (10.1) | % | 411,906 | 506,894 | (18.7) | % | |||||||||||
Retail Automotive Revenue: (Amounts in Millions) | |||||||||||||||||||
New Vehicles | $ | 2,480.7 | $ | 2,445.4 | 1.4 | % | $ | 8,080.5 | $ | 9,329.5 | (13.4) | % | |||||||
Used Vehicles | 1,674.9 | 1,712.0 | (2.2) | % | 6,414.7 | 7,241.2 | (11.4) | % | |||||||||||
Finance and Insurance, Net | 160.5 | 160.6 | (0.1) | % | 576.3 | 652.1 | (11.6) | % | |||||||||||
Service and Parts | 503.4 | 541.9 | (7.1) | % | 1,883.7 | 2,195.9 | (14.2) | % | |||||||||||
Fleet and Wholesale | 281.2 | 302.8 | (7.1) | % | 973.6 | 1,197.1 | (18.7) | % | |||||||||||
Total Revenue | $ | 5,100.7 | $ | 5,162.7 | (1.2) | % | $ | 17,928.8 | $ | 20,615.8 | (13.0) | % | |||||||
Retail Automotive Gross Profit: (Amounts in Millions) | |||||||||||||||||||
New Vehicles | $ | 215.2 | $ | 183.9 | 17.0 | % | $ | 652.8 | $ | 695.6 | (6.2) | % | |||||||
Used Vehicles | 104.0 | 81.9 | 27.0 | % | 388.9 | 366.1 | 6.2 | % | |||||||||||
Finance and Insurance, Net | 160.5 | 160.6 | (0.1) | % | 576.3 | 652.1 | (11.6) | % | |||||||||||
Service and Parts | 300.4 | 324.4 | (7.4) | % | 1,127.4 | 1,305.8 | (13.7) | % | |||||||||||
Fleet and Wholesale | 7.1 | 4.3 | 65.1 | % | 35.9 | 19.3 | 86.0 | % | |||||||||||
Total Gross Profit | $ | 787.2 | $ | 755.1 | 4.3 | % | $ | 2,781.3 | $ | 3,038.9 | (8.5) | % | |||||||
Retail Automotive Revenue Per Vehicle Retailed: | |||||||||||||||||||
New Vehicles | $ | 47,669 | $ | 43,689 | 9.1 | % | $ | 45,285 | $ | 41,892 | 8.1 | % | |||||||
Used Vehicles | 29,380 | 26,224 | 12.0 | % | 27,476 | 25,480 | 7.8 | % | |||||||||||
Retail Automotive Gross Profit Per Vehicle Retailed: | |||||||||||||||||||
New Vehicles | $ | 4,136 | $ | 3,286 | 25.9 | % | $ | 3,659 | $ | 3,124 | 17.1 | % | |||||||
Used Vehicles | 1,823 | 1,255 | 45.3 | % | 1,666 | 1,288 | 29.3 | % | |||||||||||
Finance and Insurance | 1,470 | 1,324 | 11.0 | % | 1,399 | 1,287 | 8.7 | % | |||||||||||
Retail Automotive Gross Margin: | |||||||||||||||||||
New Vehicles | 8.7 | % | 7.5 | % | +120 | bps | 8.1 | % | 7.5 | % | 60 | bps | |||||||
Used Vehicles | 6.2 | % | 4.8 | % | +140 | bps | 6.1 | % | 5.1 | % | +100 | bps | |||||||
Service and Parts | 59.7 | % | 59.9 | % | (20) | bps | 59.9 | % | 59.5 | % | 40 | bps | |||||||
Fleet and Wholesale | 2.5 | % | 1.4 | % | +110 | bps | 3.7 | % | 1.6 | % | +210 | bps | |||||||
Total Gross Margin | 15.4 | % | 14.6 | % | 80 | bps | 15.5 | % | 14.7 | % | 80 | bps | |||||||
Retail Automotive Revenue Mix Percentages: | |||||||||||||||||||
New Vehicles | 48.6 | % | 47.4 | % | +120 | bps | 45.1 | % | 45.3 | % | (20) | bps | |||||||
Used Vehicles | 32.8 | % | 33.2 | % | (40) | bps | 35.8 | % | 35.1 | % | 70 | bps | |||||||
Finance and Insurance, Net | 3.1 | % | 3.1 | % | --- | bps | 3.2 | % | 3.2 | % | --- | bps | |||||||
Service and Parts | 9.9 | % | 10.5 | % | (60) | bps | 10.5 | % | 10.7 | % | (20) | bps | |||||||
Fleet and Wholesale | 5.6 | % | 5.8 | % | (20) | bps | 5.4 | % | 5.7 | % | (30) | bps | |||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||
Retail Automotive Gross Profit Mix Percentages: | |||||||||||||||||||
New Vehicles | 27.3 | % | 24.4 | % | +290 | bps | 23.5 | % | 22.9 | % | 60 | bps | |||||||
Used Vehicles | 13.2 | % | 10.8 | % | +240 | bps | 14.0 | % | 12.0 | % | +200 | bps | |||||||
Finance and Insurance, Net | 20.4 | % | 21.3 | % | (90) | bps | 20.7 | % | 21.5 | % | (80) | bps | |||||||
Service and Parts | 38.2 | % | 43.0 | % | (480) | bps | 40.5 | % | 43.0 | % | (250) | bps | |||||||
Fleet and Wholesale | 0.9 | % | 0.5 | % | 40 | bps | 1.3 | % | 0.6 | % | 70 | bps | |||||||
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, | ||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||
Retail Automotive Same-Store Units: | |||||||||||||||||||
New Retail | 51,751 | 54,257 | (4.6) | % | 176,153 | 212,848 | (17.2) | % | |||||||||||
Used Retail | 55,901 | 63,538 | (12.0) | % | 226,920 | 273,732 | (17.1) | % | |||||||||||
Total | 107,652 | 117,795 | (8.6) | % | 403,073 | 486,580 | (17.2) | % | |||||||||||
Retail Automotive Same-Store Revenue: (Amounts in Millions) | |||||||||||||||||||
New Vehicles | $ | 2,471.8 | $ | 2,388.0 | 3.5 | % | $ | 8,007.2 | $ | 9,013.4 | (11.2) | % | |||||||
Used Vehicles | 1,655.3 | 1,673.5 | (1.1) | % | 6,289.4 | 7,015.2 | (10.3) | % | |||||||||||
Finance and Insurance, Net | 158.7 | 157.4 | 0.8 | % | 566.1 | 634.0 | (10.7) | % | |||||||||||
Service and Parts | 501.2 | 530.8 | (5.6) | % | 1,867.4 | 2,134.3 | (12.5) | % | |||||||||||
Fleet and Wholesale | 279.1 | 285.0 | (2.1) | % | 953.2 | 1,148.3 | (17.0) | % | |||||||||||
Total Revenue | $ | 5,066.1 | $ | 5,034.7 | 0.6 | % | $ | 17,683.3 | $ | 19,945.2 | (11.3) | % | |||||||
Retail Automotive Same-Store Gross Profit: (Amounts in Millions) | |||||||||||||||||||
New Vehicles | $ | 214.7 | $ | 180.8 | 18.8 | % | $ | 648.7 | $ | 676.2 | (4.1) | % | |||||||
Used Vehicles | 103.2 | 80.8 | 27.7 | % | 382.4 | 359.8 | 6.3 | % | |||||||||||
Finance and Insurance, Net | 158.7 | 157.4 | 0.8 | % | 566.1 | 634.0 | (10.7) | % | |||||||||||
Service and Parts | 299.0 | 317.1 | (5.7) | % | 1,115.7 | 1,266.3 | (11.9) | % | |||||||||||
Fleet and Wholesale | 7.4 | 4.6 | 60.9 | % | 35.1 | 20.0 | 75.5 | % | |||||||||||
Total Gross Profit | $ | 783.0 | $ | 740.7 | 5.7 | % | $ | 2,748.0 | $ | 2,956.3 | (7.0) | % | |||||||
Retail Automotive Same-Store Revenue Per Vehicle Retailed: | |||||||||||||||||||
New Vehicles | $ | 47,764 | $ | 44,012 | 8.5 | % | $ | 45,456 | $ | 42,347 | 7.3 | % | |||||||
Used Vehicles | 29,611 | 26,339 | 12.4 | % | 27,716 | 25,628 | 8.1 | % | |||||||||||
Retail Automotive Same-Store Gross Profit Per Vehicle Retailed: | |||||||||||||||||||
New Vehicles | $ | 4,150 | $ | 3,332 | 24.5 | % | $ | 3,683 | $ | 3,177 | 15.9 | % | |||||||
Used Vehicles | 1,847 | 1,272 | 45.2 | % | 1,685 | 1,314 | 28.2 | % | |||||||||||
Finance and Insurance | 1,475 | 1,336 | 10.4 | % | 1,404 | 1,303 | 7.8 | % | |||||||||||
Retail Automotive Same-Store Gross Margin: | |||||||||||||||||||
New Vehicles | 8.7 | % | 7.6 | % | +110 | bps | 8.1 | % | 7.5 | % | 60 | bps | |||||||
Used Vehicles | 6.2 | % | 4.8 | % | +140 | bps | 6.1 | % | 5.1 | % | +100 | bps | |||||||
Service and Parts | 59.7 | % | 59.7 | % | --- | bps | 59.7 | % | 59.3 | % | 40 | bps | |||||||
Fleet and Wholesale | 2.7 | % | 1.6 | % | +110 | bps | 3.7 | % | 1.7 | % | +200 | bps | |||||||
Total Gross Margin | 15.5 | % | 14.7 | % | 80 | bps | 15.5 | % | 14.8 | % | 70 | bps | |||||||
Retail Automotive Revenue Mix Percentages: | |||||||||||||||||||
New Vehicles | 48.8 | % | 47.4 | % | +140 | bps | 45.3 | % | 45.2 | % | 10 | bps | |||||||
Used Vehicles | 32.7 | % | 33.2 | % | (50) | bps | 35.6 | % | 35.2 | % | 40 | bps | |||||||
Finance and Insurance, Net | 3.1 | % | 3.1 | % | --- | bps | 3.2 | % | 3.2 | % | --- | bps | |||||||
Service and Parts | 9.9 | % | 10.5 | % | (60) | bps | 10.6 | % | 10.7 | % | (10) | bps | |||||||
Fleet and Wholesale | 5.5 | % | 5.8 | % | (30) | bps | 5.3 | % | 5.7 | % | (40) | bps | |||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||
Retail Automotive Gross Profit Mix Percentages: | |||||||||||||||||||
New Vehicles | 27.4 | % | 24.4 | % | +300 | bps | 23.6 | % | 22.9 | % | 70 | bps | |||||||
Used Vehicles | 13.2 | % | 10.9 | % | +230 | bps | 13.9 | % | 12.2 | % | +170 | bps | |||||||
Finance and Insurance, Net | 20.3 | % | 21.3 | % | (100) | bps | 20.6 | % | 21.4 | % | (80) | bps | |||||||
Service and Parts | 38.2 | % | 42.8 | % | (460) | bps | 40.6 | % | 42.8 | % | (220) | bps | |||||||
Fleet and Wholesale | 0.9 | % | 0.6 | % | 30 | bps | 1.3 | % | 0.7 | % | 60 | bps | |||||||
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, | ||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||
Retail Commercial Truck Units: | |||||||||||||||||||
New Retail | 3,254 | 3,209 | 1.4 | % | 11,324 | 11,897 | (4.8) | % | |||||||||||
Used Retail | 1,071 | 519 | 106.4 | % | 3,826 | 1,954 | 95.8 | % | |||||||||||
Total | 4,325 | 3,728 | 16.0 | % | 15,150 | 13,851 | 9.4 | % | |||||||||||
Retail Commercial Truck Revenue: (Amounts in Millions) | |||||||||||||||||||
New Vehicles | $ | 385.5 | $ | 367.6 | 4.9 | % | $ | 1,315.9 | $ | 1,347.2 | (2.3) | % | |||||||
Used Vehicles | 58.8 | 29.2 | 101.4 | % | 194.2 | 117.0 | 66.0 | % | |||||||||||
Finance and Insurance, Net | 4.0 | 3.4 | 17.6 | % | 14.5 | 12.4 | 16.9 | % | |||||||||||
Service and Parts | 120.0 | 162.6 | (26.2) | % | 478.1 | 503.3 | (5.0) | % | |||||||||||
Wholesale and Other | 11.1 | 36.3 | (69.4) | % | 58.2 | 70.6 | (17.6) | % | |||||||||||
Total Revenue | $ | 579.4 | $ | 599.1 | (3.3) | % | $ | 2,060.9 | $ | 2,050.5 | 0.5 | % | |||||||
Retail Commercial Truck Gross Profit: (Amounts in Millions) | |||||||||||||||||||
New Vehicles | $ | 16.0 | $ | 17.6 | (9.1) | % | $ | 50.4 | $ | 61.4 | (17.9) | % | |||||||
Used Vehicles | 4.9 | 0.3 | nm | % | 0.4 | 9.2 | (95.7) | % | |||||||||||
Finance and Insurance, Net | 4.0 | 3.4 | 17.6 | % | 14.5 | 12.4 | 16.9 | % | |||||||||||
Service and Parts | 51.9 | 53.8 | (3.5) | % | 207.3 | 182.4 | 13.7 | % | |||||||||||
Wholesale and Other | 2.0 | 3.2 | (37.5) | % | 8.3 | 12.4 | (33.1) | % | |||||||||||
Total Gross Profit | $ | 78.8 | $ | 78.3 | 0.6 | % | $ | 280.9 | $ | 277.8 | 1.1 | % | |||||||
Retail Commercial Truck Revenue Per Vehicle Retailed: | |||||||||||||||||||
New Vehicles | $ | 118,471 | $ | 114,573 | 3.4 | % | $ | 116,201 | $ | 113,239 | 2.6 | % | |||||||
Used Vehicles | 54,878 | 56,041 | (2.1) | % | 50,747 | 59,865 | (15.2) | % | |||||||||||
Retail Commercial Truck Gross Profit Per Vehicle Retailed: | |||||||||||||||||||
New Vehicles | $ | 4,911 | $ | 5,505 | (10.8) | % | $ | 4,451 | $ | 5,164 | (13.8) | % | |||||||
Used Vehicles | 4,578 | 546 | 738.5 | % | 97 | 4,706 | (97.9) | % | |||||||||||
Finance and Insurance | 925 | 917 | 0.9 | % | 959 | 896 | 7.0 | % | |||||||||||
Retail Commercial Truck Gross Margin: | |||||||||||||||||||
New Vehicles | 4.2 | % | 4.8 | % | (60) | bps | 3.8 | % | 4.6 | % | (80) | bps | |||||||
Used Vehicles | 8.3 | % | 1.0 | % | +730 | bps | 0.2 | % | 7.9 | % | (770) | bps | |||||||
Service and Parts | 43.3 | % | 33.1 | % | 1,020 | bps | 43.4 | % | 36.2 | % | +720 | bps | |||||||
Total Gross Margin | 13.6 | % | 13.1 | % | 50 | bps | 13.6 | % | 13.5 | % | 10 | bps | |||||||
Retail Commercial Truck Revenue Mix Percentages: | |||||||||||||||||||
New Vehicles | 66.5 | % | 61.4 | % | +510 | bps | 63.9 | % | 65.7 | % | (180) | bps | |||||||
Used Vehicles | 10.1 | % | 4.9 | % | +520 | bps | 9.4 | % | 5.7 | % | +370 | bps | |||||||
Finance and Insurance, Net | 0.7 | % | 0.6 | % | 10 | bps | 0.7 | % | 0.6 | % | 10 | bps | |||||||
Service and Parts | 20.7 | % | 27.1 | % | (640) | bps | 23.2 | % | 24.5 | % | (130) | bps | |||||||
Wholesale and Other | 2.0 | % | 6.0 | % | (400) | bps | 2.8 | % | 3.5 | % | (70) | bps | |||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||
Retail Commercial Truck Gross Profit Mix Percentages: | |||||||||||||||||||
New Vehicles | 20.3 | % | 22.5 | % | (220) | bps | 17.9 | % | 22.1 | % | (420) | bps | |||||||
Used Vehicles | 6.2 | % | 0.4 | % | +580 | bps | 0.1 | % | 3.3 | % | (320) | bps | |||||||
Finance and Insurance, Net | 5.1 | % | 4.3 | % | 80 | bps | 5.2 | % | 4.5 | % | 70 | bps | |||||||
Service and Parts | 65.9 | % | 68.7 | % | (280) | bps | 73.8 | % | 65.7 | % | +810 | bps | |||||||
Wholesale and Other | 2.5 | % | 4.1 | % | (160) | bps | 3.0 | % | 4.4 | % | (140) | bps | |||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||
PENSKE AUTOMOTIVE GROUP, INC. | |||||||||||||||||||
Retail Commercial Truck Operations Same-Store | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||
Retail Commercial Truck Same-Store Units: | |||||||||||||||||||
New Retail | 3,254 | 3,209 | 1.4 | % | 7,577 | 8,415 | (10.0) | % | |||||||||||
Used Retail | 1,071 | 519 | 106.4 | % | 2,530 | 1,644 | 53.9 | % | |||||||||||
Total | 4,325 | 3,728 | 16.0 | % | 10,107 | 10,059 | 0.5 | % | |||||||||||
Retail Commercial Truck Same-Store Revenue: (Amounts in Millions) | |||||||||||||||||||
New Vehicles | $ | 385.5 | $ | 367.6 | 4.9 | % | $ | 885.9 | $ | 934.3 | (5.2) | % | |||||||
Used Vehicles | 58.8 | 29.2 | 101.4 | % | 129.7 | 97.8 | 32.6 | % | |||||||||||
Finance and Insurance, Net | 4.0 | 3.4 | 17.6 | % | 10.9 | 10.7 | 1.9 | % | |||||||||||
Service and Parts | 120.0 | 162.6 | (26.2) | % | 335.4 | 371.9 | (9.8) | % | |||||||||||
Wholesale and Other | 11.1 | 36.3 | (69.4) | % | 25.7 | 21.0 | 22.4 | % | |||||||||||
Total Revenue | $ | 579.4 | $ | 599.1 | (3.3) | % | $ | 1,387.6 | $ | 1,435.7 | (3.4) | % | |||||||
Retail Commercial Truck Same-Store Gross Profit: (Amounts in Millions) | |||||||||||||||||||
New Vehicles | $ | 16.0 | $ | 17.6 | (9.1) | % | $ | 34.2 | $ | 40.1 | (14.7) | % | |||||||
Used Vehicles | 4.9 | 0.3 | nm | % | 5.2 | 7.9 | (34.2) | % | |||||||||||
Finance and Insurance, Net | 4.0 | 3.4 | 17.6 | % | 10.9 | 10.7 | 1.9 | % | |||||||||||
Service and Parts | 51.9 | 53.8 | (3.5) | % | 135.9 | 146.8 | (7.4) | % | |||||||||||
Wholesale and Other | 2.0 | 3.2 | (37.5) | % | 14.9 | 12.0 | 24.2 | % | |||||||||||
Total Gross Profit | $ | 78.8 | $ | 78.3 | 0.6 | % | $ | 201.1 | $ | 217.5 | (7.5) | % | |||||||
Retail Commercial Truck Same-Store Revenue Per Vehicle Retailed: | |||||||||||||||||||
New Vehicles | $ | 118,471 | $ | 114,573 | 3.4 | % | $ | 116,915 | $ | 111,024 | 5.3 | % | |||||||
Used Vehicles | 54,878 | 56,041 | (2.1) | % | 51,279 | 59,510 | (13.8) | % | |||||||||||
Retail Commercial Truck Same-Store Gross Profit Per Vehicle Retailed: | |||||||||||||||||||
New Vehicles | $ | 4,911 | $ | 5,505 | (10.8) | % | $ | 4,513 | $ | 4,762 | (5.2) | % | |||||||
Used Vehicles | 4,578 | 546 | 738.5 | % | 2,073 | 4,836 | (57.1) | % | |||||||||||
Finance and Insurance | 925 | 917 | 0.9 | % | 1,075 | 1,068 | 0.7 | % | |||||||||||
Retail Commercial Truck Same-Store Gross Margin: | |||||||||||||||||||
New Vehicles | 4.2 | % | 4.8 | % | (60) | bps | 3.9 | % | 4.3 | % | (40) | bps | |||||||
Used Vehicles | 8.3 | % | 1.0 | % | +730 | bps | 4.0 | % | 8.1 | % | (410) | bps | |||||||
Service and Parts | 43.3 | % | 33.1 | % | 1,020 | bps | 40.5 | % | 39.5 | % | +100 | bps | |||||||
Total Gross Margin | 13.6 | % | 13.1 | % | 50 | bps | 14.5 | % | 15.1 | % | (60) | bps | |||||||
Retail Commercial Truck Revenue Mix Percentages: | |||||||||||||||||||
New Vehicles | 66.5 | % | 61.4 | % | +510 | bps | 63.8 | % | 65.1 | % | (130) | bps | |||||||
Used Vehicles | 10.1 | % | 4.9 | % | +520 | bps | 9.3 | % | 6.8 | % | +250 | bps | |||||||
Finance and Insurance, Net | 0.7 | % | 0.6 | % | 10 | bps | 0.8 | % | 0.7 | % | 10 | bps | |||||||
Service and Parts | 20.7 | % | 27.1 | % | (640) | bps | 24.2 | % | 25.9 | % | (170) | bps | |||||||
Wholesale and Other | 2.0 | % | 6.0 | % | (400) | bps | 1.9 | % | 1.5 | % | 40 | bps | |||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||
Retail Commercial Truck Gross Profit Mix Percentages: | |||||||||||||||||||
New Vehicles | 20.3 | % | 22.5 | % | (220) | bps | 17.0 | % | 18.4 | % | (140) | bps | |||||||
Used Vehicles | 6.2 | % | 0.4 | % | +580 | bps | 2.6 | % | 3.6 | % | (100) | bps | |||||||
Finance and Insurance, Net | 5.1 | % | 4.3 | % | 80 | bps | 5.4 | % | 4.9 | % | 50 | bps | |||||||
Service and Parts | 65.9 | % | 68.7 | % | (280) | bps | 67.6 | % | 67.5 | % | 10 | bps | |||||||
Wholesale and Other | 2.5 | % | 4.1 | % | (160) | bps | 7.4 | % | 5.6 | % | +180 | bps | |||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||
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, 2020, and 2019:
Income from Continuing Operations:
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
(Amounts in Millions) | December 31, | December 31, | ||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | |||||||||||||||
Income from Continuing Operations | $ | 200.1 | $ | 101.6 | 96.9 | % | $ | 543.2 | $ | 435.5 | 24.7 | % | ||||||||
U.S. and foreign tax legislation changes | 4.0 | — | nm | (11.4) | — | nm | ||||||||||||||
Net gain on dealership sales (2) | (9.4) | — | nm | (3.3) | — | nm | ||||||||||||||
Loss on debt extinguishment (3) | 5.1 | — | nm | 6.4 | — | nm | ||||||||||||||
Adjusted Income from Continuing Operations | $ | 199.9 | (1) | $ | 101.6 | 96.8 | % | $ | 534.9 | $ | 435.5 | 22.8 | % | |||||||
Earnings Per Share:
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | |||||||||||||||
Earnings Per Share from Continuing Operations | $ | 2.49 | $ | 1.25 | 99.2 | % | $ | 6.74 | $ | 5.28 | 27.7 | % | ||||||||
U.S. and foreign tax legislation changes | 0.05 | — | nm | (0.14) | — | nm | ||||||||||||||
Net gain on dealership sales (2) | (0.12) | — | nm | (0.04) | — | nm | ||||||||||||||
Loss on debt extinguishment (3) | 0.06 | — | nm | 0.08 | — | nm | ||||||||||||||
Adjusted Earnings Per Share from Continuing Operations | $ | 2.49 | (1) | $ | 1.25 | 99.2 | % | $ | 6.64 | $ | 5.28 | 25.8 | % | |||||||
(1) | May not sum due to rounding. |
(2) | Relates to the net gain on the sale of various dealerships in the U.S. and U.K. |
(3) | Relates to a net loss on the extinguishment of our $550 million in aggregate principal amount of 5.75% senior subordinated notes due 2022 and our $300 million 5.375% senior subordinated notes due 2024. |
The following tables reconcile reported selling, general and administrative expenses ("SG&A") and SG&A to gross profit to adjusted SG&A and adjusted SG&A to gross profit for the three and twelve months ended December 31, 2020, and 2019:
Three Months Ended | ||||||||||||
December 31, | 2020 vs. 2019 | |||||||||||
(Amounts in Millions) | 2020 | 2019 | Change | % Change | ||||||||
Selling, General & Administrative Expenses | $ | 625.8 | $ | 685.1 | $ | (59.3) | (8.7) | % | ||||
Add: Net gain on dealership sales (2) | 12.7 | — | 12.7 | nm | ||||||||
Adjusted Selling, General & Administrative Expenses | $ | 638.5 | $ | 685.1 | $ | (46.6) | (6.8) | % | ||||
Selling, General and Administrative Expenses to Gross Profit | 69.7 | % | 79.1 | % | (940) | bps | nm | |||||
Adjusted Selling, General & Administrative Expenses to Gross Profit | 71.1 | % | 79.1 | % | (800) | bps | nm | |||||
Twelve Months Ended | ||||||||||||
December 31, | 2020 vs. 2019 | |||||||||||
(Amounts in Millions) | 2020 | 2019 | Change | % Change | ||||||||
Selling, General & Administrative Expenses | $ | 2,364.5 | $ | 2,693.2 | $ | (328.7) | (12.2) | % | ||||
Add: Net gain on dealership sales (2) | 5.2 | — | 5.2 | nm | ||||||||
Adjusted Selling, General & Administrative Expenses | $ | 2,369.7 | $ | 2,693.2 | $ | (323.5) | (12.0) | % | ||||
Selling, General and Administrative Expenses to Gross Profit | 74.3 | % | 77.9 | % | (360) | bps | nm | |||||
Adjusted Selling, General & Administrative Expenses to Gross Profit | 74.4 | % | 77.9 | % | (350) | bps | nm | |||||
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, 2020, and 2019:
Three Months Ended | ||||||||||||
December 31, | 2020 vs. 2019 | |||||||||||
(Amounts in Millions) | 2020 | 2019 | Change | % Change | ||||||||
Net Income | $ | 201.4 | $ | 101.3 | $ | 100.1 | 98.8 | % | ||||
Add: Depreciation | 30.1 | 28.6 | 1.5 | 5.2 | % | |||||||
Other Interest Expense | 28.7 | 31.0 | (2.3) | (7.4) | % | |||||||
Income Taxes | 62.0 | 38.1 | 23.9 | 62.7 | % | |||||||
Income from Discontinued Operations, net of tax | (0.1) | — | (0.1) | nm | ||||||||
EBITDA | $ | 322.1 | $ | 199.0 | $ | 123.1 | 61.9 | % | ||||
Less: Net gain on dealership sales | (9.4) | — | (9.4) | nm | ||||||||
Add: Loss on debt extinguishment | 5.1 | — | 5.1 | nm | ||||||||
Adjusted EBITDA | $ | 317.8 | $ | 199.0 | $ | 118.8 | 59.7 | % | ||||
Twelve Months Ended | ||||||||||||
December 31, | 2020 vs. 2019 | |||||||||||
(Amounts in Millions) | 2020 | 2019 | Change | % Change | ||||||||
Net Income | $ | 545.3 | $ | 435.1 | $ | 110.2 | 25.3 | % | ||||
Add: Depreciation | 115.5 | 109.6 | 5.9 | 5.4 | % | |||||||
Other Interest Expense | 119.6 | 124.2 | (4.6) | (3.7) | % | |||||||
Income Taxes | 162.7 | 156.7 | 6.0 | 3.8 | % | |||||||
Income from Discontinued Operations, net of tax | (0.4) | (0.3) | (0.1) | nm | ||||||||
EBITDA | $ | 942.7 | $ | 825.3 | $ | 117.4 | 14.2 | % | ||||
Less: Net gain on dealership sales | (3.3) | — | (3.3) | nm | ||||||||
Add: Loss on debt extinguishment | 6.4 | — | 6.4 | nm | ||||||||
Adjusted EBITDA | $ | 945.8 | $ | 825.3 | $ | 120.5 | 14.6 | % | ||||
nm – not meaningful |
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SOURCE Penske Automotive Group, Inc.
