PENSKE AUTOMOTIVE GROUP, INC. - FORM 8-K - EX-99.1

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8-K - LIVE FILING - PENSKE AUTOMOTIVE GROUP, INC.	htm_47038.htm


FOR IMMEDIATE RELEASE

PENSKE AUTOMOTIVE REPORTS FOURTH QUARTER AND FULL YEAR RESULTS

Reports Record Fourth Quarter Income from Continuing Operations and Earnings per Share
Earnings per Share from Continuing Operations Rises 21.3% to $0.57
Completes Most Profitable Year in Company History


Fourth Quarter 2012				Full Year 2012

•

Revenue Increases 17.9% to $3.4 Billion

•

Revenue Increases 18.3% to $13.2 Billion



• Same-store Retail Revenue Increases 11.4
%

• Same-store Retail Revenue Increases 9.9%

• Income from Continuing Operations

• Adjusted Inc. from Continuing
Increases 19.5% to $51.0 Million					Operations Increases 25.8% to $206.0 Million

• EPS from Continuing Operations Increases

• Adjusted EPS from Continuing Operations
21.3% to $0.57 per share					Increases 26.7% to $2.28 per share

• Adjusted EBITDA Increases 19.6% to

• EBITDA Increases 14.4% to $102.2 Million					$407.6 Million
BLOOMFIELD HILLS, MI, February 6, 2013 – Penske Automotive Group, Inc. (NYSE:PAG), an
international automotive retailer, announced today record fourth quarter income from continuing
operations and related earnings per share. For the fourth quarter 2012, income from continuing
operations attributable to common shareholders increased 19.5% to $51.0 million and related
earnings per share increased 21.3% to $0.57 per share. This compares to income from continuing
operations attributable to common shareholders of $42.7 million, or $0.47 per share in the same
period last year. Fourth quarter results include $1.7 million ($1.2 million after-taxes, or $0.01
per share) in expenses for insurance deductibles and clean-up costs associated with Superstorm
Sandy.

Total revenue increased 17.9% to $3.4 billion, including a same-store retail revenue increase of 11.4% in the fourth quarter. The revenue increase was driven by a 19.3% increase in total retail unit sales, including an 11.5% increase on a same-store basis. Gross profit improved 16.9% to $515.1 million while operating income increased 19.9% to $91.5 million.


Highlights of the Fourth Quarter

•

Total Retail Unit Sales increased 19.3% to 81,383

•

+15.3% in the United States; +30.3% Internationally

•

New unit retail sales +21.7%

•

Used unit retail sales +16.2%

•

Same-store Retail Revenue increased 11.4%

•

New +16.1%; Used +6.0%; Finance & Insurance +13.0%; Service and Parts +3.2%

•

+12.8% in the United States; +8.5% Internationally

•

Average Transaction Price Per Unit

•

New $38,881; (0.4%)

•

Used $25,791; (2.5%)

•

Average Gross Profit Per Unit

•

New $3,197, ($58/unit); Gross Margin 8.2%, (10 basis points)

•

Used $1,857, ($61/unit); Gross Margin 7.2%, (10 basis points)

•

Finance & Insurance $986, +$1/unit

Chairman Roger Penske said, “I’m pleased that our retail automotive business reported record profitability in the fourth quarter, producing double-digit growth in operating income, income from continuing operations and earnings per share during the fourth quarter, despite the effects of Superstorm Sandy which impacted operations in the northeast U.S. during the quarter. I am particularly pleased that our same-store retail revenues improved by 11.4% while gross profit per retail unit stabilized, and service and parts margin improved 110 basis points to 58.8%.”

For the year ended December 31, 2012, total revenue increased 18.3% to $13.2 billion. Adjusted income from continuing operations attributable to common shareholders increased 25.8% to $206.0 million and adjusted earnings per share attributable to common shareholders increased 26.7% to $2.28 per share. This compares to adjusted income from continuing operations attributable to common shareholders of $163.8 million, and adjusted earnings per share of $1.80 per share in the same period last year.

The full year 2012 results exclude after-tax costs of $13.0 million, or $0.14 per share, of debt redemption costs associated with the redemption of the Company’s $375 million of 7.75% senior subordinated notes due 2016. The full year 2011 results exclude $11.0 million, or $0.12 per share, of net income tax benefits reflecting a positive adjustment from the resolution of certain tax items in the U.K. of $17.0 million, or $0.19 per share, partially offset by a reduction in deferred tax assets of $6.0 million, or $0.07 per share. Income from continuing operations attributable to common shareholders for the twelve months ended December 31, 2012, was $193.0 million, or $2.14 per share, compared to income from continuing operations attributable to common shareholders of $174.8 million, or $1.92 in the same period last year.

Penske continued, “2012 was a very solid year of growth and profitability for our Company. We expanded our presence globally by completing acquisitions in Northern Ireland and Italy, and we entered the Madison, Wisconsin, market in the U.S. In total, our business added $750 million in estimated annualized revenue through acquisitions during the year, and generated a 9.9% increase in same-store retail revenue, resulting in revenue growth of 18.3%, which contributed to a 23.4% increase in operating income and a 26.7% increase in adjusted earnings per share.”

Conference Call
Penske Automotive will host a conference call discussing financial results relating to the fourth quarter of 2012 on February 6, 2013, at 2:00 p.m. Eastern Standard Time. To listen to the conference call, participants must dial (800) 230-1092 [International, please dial (612) 234-9959]. The call will also be simultaneously broadcast over the Internet through the Investors Relations section of the Penske Automotive Group website. Additionally, an investor presentation relating to the fourth quarter and full year 2012 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., headquartered in Bloomfield Hills, Michigan, operates 344 retail automotive franchises, representing 40 different brands and 30 collision repair centers. Penske Automotive, which sells new and previously owned vehicles, finance and insurance products and replacement parts, and offers maintenance and repair services on all brands it represents, has 173 franchises in 18 states and Puerto Rico and 171 franchises located outside the United States, primarily in the United Kingdom. Penske Automotive is a member of the Fortune 500 and Russell 2000 and has approximately 16,700 employees.

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 from continuing operations, and adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”). 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 future sales potential and outlook. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others: economic conditions generally, conditions in the credit markets and changes in interest rates, adverse conditions affecting a particular manufacturer, including the adverse impact to the vehicle and parts supply chain due to natural disasters 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’s business, markets, conditions and other uncertainties, which could affect Penske Automotive’s future performance. These risks and uncertainties are addressed in Penske Automotive’s Form 10-K for the year ended December 31, 2011, and its other filings with the Securities and Exchange Commission (“SEC”). This press release speaks only as of its date, and Penske Automotive disclaims any duty to update the information herein.

Find a vehicle: http://www.penskecars.com
Engage Penske Automotive: http://www.penskesocial.com
Like Penske Automotive on Facebook: https://facebook.com/PenskeCars
Follow Penske Automotive on Twitter: https://twitter.com/#!/Penskecarscorp
Visit Penske Automotive on YouTube: http://www.youtube.com/penskecars

Inquiries should contact:


David K. Jones Executive Vice President and Chief Financial Officer Penske Automotive Group, Inc. 248-648-2800 dave.jones@penskeautomotive.com		Anthony R. Pordon Executive Vice President Investor Relations and Corporate Development Penske Automotive Group, Inc. 248-648-2540 tpordon@penskeautomotive.com

# # #

PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Condensed Statements of Income
(Amounts In Thousands, Except Per Share Data)
(Unaudited)


	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2012			2011			2012			2011
Revenues:
New Vehicle	$	1,803,763		$	1,487,524		$	6,782,389		$	5,639,381
Used Vehicle		902,471			797,005			3,747,236			3,238,152
Finance and Insurance, Net		80,244			67,240			322,567			270,579
Service and Parts		363,528			332,770			1,446,729			1,329,064
Fleet, Wholesale and Other		221,246			173,928			864,596			650,316

Total Revenues	$	3,371,252		$	2,858,467		$	13,163,517		$	11,127,492
Cost of Sales:
New Vehicle	$	1,655,437		$	1,363,453		$	6,233,338		$	5,169,968
Used Vehicle		837,498			739,212			3,462,908			2,984,267
Service and Parts		149,791			140,915			603,682			566,380
Fleet, Wholesale and Other		213,413			174,394			850,641			645,055

Total Cost of Sales		2,856,139			2,417,974			11,150,569			9,365,670
Gross Profit		515,113			440,493			2,012,948			1,761,822
SG&A Expenses		409,505			352,076			1,594,095			1,419,123
Depreciation		14,140			12,141			53,995			47,101

Operating Income		91,468			76,276			364,858			295,598
Floor Plan Interest Expense		(9,584	)		(7,001	)		(38,797	)		(27,218	)
Other Interest Expense		(11,656	)		(11,657	)		(46,892	)		(44,256	)
Equity in Earnings of Affiliates		6,180			7,924			27,572			25,451
Debt Redemption Costs		—			—			(17,753	)		—
Debt Discount Amortization		—			—			—			(1,718	)
Income from Continuing Operations Before Income Taxes		76,408			65,542			288,988			247,857
Income Taxes		(24,726	)		(22,373	)		(94,330	)		(71,690	)

Income from Continuing Operations		51,682			43,169			194,658			176,167
(Loss) Income from Discontinued Operations, Net of Tax		(2,446	)		4,988			(7,491	)		2,091

Net Income		49,236			48,157			187,167			178,258
Less: Income Attributable to Non-Controlling Interests		(637	)		(470	)		(1,627	)		(1,377	)

Net Income Attributable to Common Shareholders	$	48,599		$	47,687		$	185,540		$	176,881

Income from Continuing Operations Per Share	$	0.57		$	0.47		$	2.14		$	1.92

Income Per Share	$	0.54		$	0.53		$	2.05		$	1.94

Weighted Average Shares Outstanding		90,291			90,553			90,342			91,274

Amounts Attributable to Common Shareholders:
Reported Income from Continuing Operations	$	51,682		$	43,169		$	$194,658		$	176,167
Less: Income Attributable to Non-Controlling Interests		(637	)		(470	)		(1,627	)		(1,377	)

Income from Continuing Operations, net of tax	$	51,045		$	42,699		$	193,031		$	174,790
(Loss) Income from Discontinued Operations, net of tax		(2,446	)		4,988			(7,491	)		2,091

Net Income	$	48,599		$	47,687		$	185,540		$	176,881

PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Condensed Balance Sheets
(Amounts In Thousands)
(Unaudited)


	December 31,		December 31,
	2012		2011
Assets
Cash and Cash Equivalents	$	43,753	$	27,201
Accounts Receivable, Net		552,868		429,633
Inventories		1,991,167		1,535,386
Other Current Assets		90,854		72,981
Assets Held for Sale		94,441		159,243

Total Current Assets		2,773,083		2,224,444
Property and Equipment, Net		1,023,781		839,630
Intangibles		1,258,012		1,123,206
Other Long-Term Assets		324,114		312,121

Total Assets	$	5,378,990	$	4,499,401

Liabilities and Equity
Floor Plan Notes Payable	$	1,408,363	$	966,579
Floor Plan Notes Payable – Non-Trade		716,621		668,581
Accounts Payable		263,349		214,870
Accrued Expenses		223,574		195,108
Current Portion Long-Term Debt		19,493		3,414
Liabilities Held for Sale		62,156		103,001

Total Current Liabilities		2,693,556		2,151,553
Long-Term Debt		918,024		846,777
Other Long-Term Liabilities		451,089		351,499

Total Liabilities		4,062,669		3,349,829
Equity		1,316,321		1,149,572

Total Liabilities and Equity	$	5,378,990	$	4,499,401

PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Condensed Statements of Income
(Amounts In Thousands, Except Per Share Data)
(Unaudited)


	Three Months Ended
	December 31,
								% Increase/
	2012			2011				(Decrease)
Revenues:
New Vehicle	$	1,803,763		$	1,487,524				21.3	%
Used Vehicle		902,471			797,005				13.2	%
Finance and Insurance, Net		80,244			67,240				19.3	%
Service and Parts		363,528			332,770				9.2	%
Fleet, Wholesale and Other		221,246			173,928				27.2	%

Total Revenues	$	3,371,252		$	2,858,467				17.9	%
Cost of Sales:
New Vehicle	$	1,655,437		$	1,363,453				21.4	%
Used Vehicle		837,498			739,212				13.3	%
Service and Parts		149,791			140,915				6.3	%
Fleet, Wholesale and Other		213,413			174,394				22.4	%

Total Cost of Sales		2,856,139			2,417,974				18.1	%
Gross Profit		515,113			440,493				16.9	%
SG&A Expenses		409,505			352,076				16.3	%
Depreciation		14,140			12,141				16.5	%

Operating Income		91,468			76,276				19.9	%
Floor Plan Interest Expense		(9,584	)		(7,001	)			36.9	%
Other Interest Expense		(11,656	)		(11,657	)		—
Equity in Earnings of Affiliates		6,180			7,924				(22.0	%)
Income from Continuing Operations Before Income Taxes		76,408			65,542				16.6	%
Income Taxes		(24,726	)		(22,373	)	(		10.5	%

Income from Continuing Operations		51,682			43,169				19.7	%
(Loss) Income from Discontinued Operations, Net of Tax		(2,446	)		4,988			nm

Net Income		49,236			48,157				2.2	%
Less: Income Attributable to Non-Controlling Interests		(637	)		(470	)			35.5	%

Net Income Attributable to Common Shareholders	$	48,599		$	47,687				1.9	%

Income from Continuing Operations Per Share	$	0.57		$	0.47				21.3	%

Income Per Share	$	0.54		$	0.53				1.9	%

Weighted Average Shares Outstanding		90,291			90,553				(0.3	%)

Amounts Attributable to Common Shareholders:
Reported Income from Continuing Operations	$	51,682		$	43,169				19.7	%
Less: Income Attributable to Non-Controlling Interests		(637	)		(470	)			35.5	%

Income from Continuing Operations, net of tax	$	51,045		$	42,699				19.5	%
(Loss) Income from Discontinued Operations, net of tax		(2,446	)		4,988			nm

Net Income	$	48,599		$	47,687				1.9	%

nm – not meaningful

PENSKE AUTOMOTIVE GROUP, INC.
Selected Data
(Unaudited)


	Three Months Ended
	December 31,
							% Increase/
	2012			2011			(Decrease)
Total Retail Units:
New Retail		46,392			38,120			21.7	%
Used Retail		34,991			30,124			16.2	%

Total Retail		81,383			68,244			19.3	%

Same-Store Retail Units:
New Same-Store Retail		43,300			37,739			14.7	%
Used Same-Store Retail		32,036			29,818			7.4	%

Total Same-Store Retail		75,336			67,557			11.5	%

Same-Store Retail Revenue: (Amounts in thousands)
New Vehicles	$	1,711,068		$	1,473,813			16.1	%
Used Vehicles		838,745			791,132			6.0	%
Finance and Insurance, Net		75,396			66,722			13.0	%
Service and Parts		341,367			330,670			3.2	%

Total Same-Store Retail	$	2,966,576		$	2,662,337			11.4	%

Revenue Mix:
New Vehicles		53.5	%		52.0	%	150 bps
Used Vehicles		26.8	%		27.9	%	(110 bps)
Finance and Insurance, Net		2.4	%		2.4	%	—
Service and Parts		10.8	%		11.6	%	(80 bps)
Fleet, Wholesale and Other		6.5	%		6.1	%	40 bps
Average Revenue per Vehicle Retailed:
New Vehicles	$	38,881		$	39,022			(0.4	%)
Used Vehicles		25,791			26,457			(2.5	%)
Gross Profit per Vehicle Retailed:
New Vehicles	$	3,197		$	3,255			(1.8	%)
Used Vehicles		1,857			1,918			(3.2	%)
Finance and Insurance		986			985			0.1	%
Operating items as a percentage of revenue:
New Vehicle Gross Profit		8.2	%		8.3	%	(10 bps)
Used Vehicle Gross Profit		7.2	%		7.3	%	(10 bps)
Service and Parts Gross Profit		58.8	%		57.7	%	110 bps
Total Gross Profit		15.3	%		15.4	%	(10 bps)
Selling, General and Admin. Expenses		12.1	%		12.3	%	(20 bps)
Operating Income		2.7	%		2.7	%	—
Inc. From Cont. Ops. Before Inc. Taxes		2.3	%		2.3	%	—
Operating items as a percentage of total gross profit:
Selling, General and Administrative Expenses		79.5	%		79.9	%	(40 bps)
Operating Income		17.8	%		17.3	%	50 bps

PENSKE AUTOMOTIVE GROUP, INC.
Selected Data (Continued)
(Unaudited)


	Three Months Ended
	December 31,
					% Increase/
	2012		2011		(Decrease)
Other (Amounts in Thousands):
EBITDA *	$	102,204	$	89,340		14.4	%
Rent Expense		43,891		41,712		5.2	%
Floorplan Credits		6,280		4,847		29.6	%

* See the following Non-GAAP reconciliation tables

PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Condensed Statements of Income
(Amounts In Thousands, Except Per Share Data)
(Unaudited)


	Twelve Months Ended
	December 31,
							% Increase/
	2012			2011			(Decrease)
Revenues:
New Vehicle	$	6,782,389		$	5,639,381			20.3	%
Used Vehicle		3,747,236			3,238,152			15.7	%
Finance and Insurance, Net		322,567			270,579			19.2	%
Service and Parts		1,446,729			1,329,064			8.9	%
Fleet, Wholesale and Other		864,596			650,316			33.0	%

Total Revenues	$	13,163,517		$	11,127,492			18.3	%
Cost of Sales:
New Vehicle	$	6,233,338		$	5,169,968			20.6	%
Used Vehicle		3,462,908			2,984,267			16.0	%
Service and Parts		603,682			566,380			6.6	%
Fleet, Wholesale and Other		850,641			645,055			31.9	%

Total Cost of Sales		11,150,569			9,365,670			19.1	%
Gross Profit		2,012,948			1,761,822			14.3	%
SG&A Expenses		1,594,095			1,419,123			12.3	%
Depreciation		53,995			47,101			14.6	%

Operating Income		364,858			295,598			23.4	%
Floor Plan Interest Expense		(38,797	)		(27,218	)		42.5	%
Other Interest Expense		(46,892	)		(44,256	)		6.0	%
Equity in Earnings of Affiliates		27,572			25,451			8.3	%
Debt Redemption Costs		(17,753	)		—		nm
Debt Discount Amortization		—			(1,718	)	nm
Income from Continuing Operations Before Income Taxes		288,988			247,857			16.6	%
Income Taxes		(94,330	)		(71,690	)		31.6	%

Income from Continuing Operations		194,658			176,167			10.5	%
(Loss) Income from Discontinued Operations, Net of Tax		(7,491	)		2,091		nm

Net Income		187,167			178,258			5.0	%
Less: Income Attributable to Non-Controlling Interests		(1,627	)		(1,377	)		18.2	%

Net Income Attributable to Common Shareholders	$	185,540		$	176,881			4.9	%

Income from Continuing Operations Per Share	$	2.14		$	1.92			11.5	%

Income Per Share	$	2.05		$	1.94			5.7	%

Weighted Average Shares Outstanding		90,342			91,274			(1.0	%)

Amounts Attributable to Common Shareholders:
Reported Income from Continuing Operations	$	194,658		$	176,167			10.5	%
Less: Income Attributable to Non-Controlling Interests		(1,627	)		(1,377	)		18.2	%

Income from Continuing Operations, net of tax	$	193,031		$	174,790			10.4	%
(Loss) Income from Discontinued Operations, net of tax		(7,491	)		2,091		nm

Net Income	$	185,540		$	176,881			4.9	%

nm = not meaningful

PENSKE AUTOMOTIVE GROUP, INC.
Selected Data
(Unaudited)


	Twelve Months Ended
	December 31,
							% Increase/
	2012			2011			(Decrease)
Total Retail Units:
New Retail		180,764			149,068			21.3	%
Used Retail		145,580			121,501			19.8	%

Total Retail		326,344			270,569			20.6	%

Same-Store Retail Units:
New Same-Store Retail		162,901			144,289			12.9	%
Used Same-Store Retail		131,987			118,295			11.6	%

Total Same-Store Retail		294,888			262,584			12.3	%

Same-Store Retail Revenue: (Amounts in thousands)
New Vehicles	$	6,121,846		$	5,434,368			12.7	%
Used Vehicles		3,421,430			3,161,317			8.2	%
Finance and Insurance, Net		298,785			263,534			13.4	%
Service and Parts		1,315,925			1,289,767			2.0	%

Total Same-Store Retail	$	11,157,986		$	10,148,986			9.9	%

Revenue Mix:
New Vehicles		51.5	%		50.7	%	80 bps
Used Vehicles		28.5	%		29.1	%	(60 bps)
Finance and Insurance, Net		2.5	%		2.4	%	10 bps
Service and Parts		11.0	%		11.9	%	(90 bps)
Fleet, Wholesale and Other		6.5	%		5.9	%	60 bps
Average Revenue per Vehicle Retailed:
New Vehicles	$	37,521		$	37,831			(0.8	%)
Used Vehicles		25,740			26,651			(3.4	%)
Gross Profit per Vehicle Retailed:
New Vehicles	$	3,037		$	3,149			(3.5	%)
Used Vehicles		1,953			2,089			(6.5	%)
Finance and Insurance		988			1,000			(1.2	%)
Operating items as a percentage of revenue:
New Vehicle Gross Profit		8.1	%		8.3	%	(20 bps)
Used Vehicle Gross Profit		7.6	%		7.8	%	(20 bps)
Service and Parts Gross Profit		58.3	%		57.4	%	90 bps
Total Gross Profit		15.3	%		15.8	%	(50 bps)
Selling, General and Admin. Expenses		12.1	%		12.8	%	(70 bps)
Operating Income		2.8	%		2.7	%	10 bps
Inc. From Cont. Ops. Before Inc. Taxes		2.2	%		2.2	%	—
Operating items as a percentage of total gross profit:
Selling, General and Administrative Expenses		79.2	%		80.5	%	(130 bps)
Operating Income		18.1	%		16.8	%	130 bps

PENSKE AUTOMOTIVE GROUP, INC.
Selected Data (Continued)
(Unaudited)


	Twelve Months Ended
	December 31,
					% Increase/
	2012		2011		(Decrease)
Other (Amounts in Thousands):
EBITDA *	$	389,875	$	340,932		14.4	%
Adjusted EBITDA *		407,628		340,932		19.6	%
Rent Expense		173,280		165,346		4.8	%
Floorplan Credits		22,976		19,703		16.6	%

* See the following Non-GAAP reconciliation tables

PENSKE AUTOMOTIVE GROUP, INC.
Selected Data
Brand Revenue Mix
(Unaudited)


	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2012			2011			2012			2011
Brand Revenue Mix:
Premium:
BMW		28	%		25	%		26	%		24	%
Audi		12	%		12	%		12	%		12	%
Mercedes-Benz		11	%		12	%		11	%		11	%
Lexus		4	%		4	%		4	%		4	%
Land Rover		4	%		5	%		4	%		4	%
Porsche		5	%		4	%		4	%		5	%
Ferrari / Maserati		3	%		3	%		3	%		3	%
Acura		1	%		2	%		2	%		2	%
Other		4	%		4	%		4	%		5	%

Total Premium		72	%		71	%		70	%		70	%
Foreign:
Toyota		10	%		10	%		10	%		10	%
Honda		9	%		10	%		11	%		11	%
Nissan		1	%		2	%		1	%		2	%
Volkswagen		2	%		2	%		2	%		2	%
Other		2	%		1	%		2	%		1	%

Total Foreign		24	%		25	%		26	%		26	%
Domestic Big 3
General Motors / Chrysler / Ford		4	%		4	%		4	%		4	%
Revenue Mix:
U.S.		67	%		68	%		64	%		64	%
International		33	%		32	%		36	%		36	%

PENSKE AUTOMOTIVE GROUP, INC.
Non-GAAP Reconciliation
(Unaudited)


	Income						Earnings Per Share
	Twelve Months Ended						Twelve Months Ended
	December 31,						December 31,
	2012		2011				2012		2011
Income from Continuing Operations net of tax and Earnings per Share	$193.0		$174.8				$2.14		$1.92
Debt Redemption Costs ⁽¹⁾		13.0		—				0.14	—
Net Tax Benefits ⁽²⁾		—		(11.0	)			—		(0.12	)

Adjusted Income from Continuing Operations and Adjusted Earnings per Share	$206.0		$163.8			25.8%	$2.28		$1.80			26.7%

(1)

Costs associated with the redemption of the Company’s $375 million of 7.75% senior subordinated notes due 2016 of $17.8 million ($13.0 million net of taxes), or $0.14 per share.

(2)

Net income tax benefit reflecting a positive adjustment from the resolution of certain tax items in the U.K. of $17.0 million, or $0.19 per share, partially offset by a reduction in deferred tax assets of $6.0 million, or $0.07 per share.

PENSKE AUTOMOTIVE GROUP, INC.
Non-GAAP Reconciliation
(Unaudited)

Reconciliation of 2012 and 2011 net income to EBITDA and Adjusted EBITDA:


	Three Months Ended
	December 31,
						% Increase/
(Amounts in Thousands)	2012		2011			(Decrease)
Net Income	$	49,236	$	48,157			2.2	%
Depreciation		14,140		12,141			16.5	%
Other Interest Expense		11,656		11,657		—
Income Taxes		24,726		22,373			10.5	%
Loss (income) from Discontinued Operations, net		2,446		(4,988	)	nm

EBITDA	$	102,204	$	89,340			14.4	%


	Twelve Months Ended
	December 31,
						% Increase/
(Amounts in Thousands)	2012		2011			(Decrease)
Net Income	$	187,167	$	178,258			5.0	%
Depreciation		53,995		47,101			14.6	%
Other Interest Expense		46,892		44,256			6.0	%
Debt Discount Amortization		—		1,718		nm
Income Taxes		94,330		71,690			31.6	%
Loss (income) from Discontinued Operations, net		7,491		(2,091	)	nm

EBITDA	$	389,875	$	340,932			14.4	%
Add back: Debt Redemption Costs		17,753		—		nm

Adjusted EBITDA	$	407,628	$	340,932			19.6	%

nm = not meaningful

# # # # # # #

Attached files

PENSKE AUTOMOTIVE GROUP, INC. Reports

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