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

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8-K - LIVE FILING - PENSKE AUTOMOTIVE GROUP, INC.	htm_48215.htm


FOR IMMEDIATE RELEASE

PENSKE AUTOMOTIVE REPORTS SECOND QUARTER AND FIRST-HALF RESULTS

Record Second Quarter Income from Continuing Operations and Earnings per Share
Operating Margin Increases 40 Basis Points
Earnings per Share from Continuing Operations Rises 26.8% to $0.71


Second Quarter 2013				Six Months 2013

•

Revenue Increases 11.6% to $3.7 Billion

•

Revenue Increases 9.6% to $7.1 Billion



• Same-store Retail Revenue Increases 11.5
%

• Same-store Retail Revenue Increases 9.4%

• Income from Continuing Operations

• Income from Continuing Operations
Increases 27.4% to $64.0 Million		Increases 20.8% to $120.9 Million

• EPS from Continuing Operations Increases

• EPS from Continuing Operations
26.8% to $0.71 per share		Increases 20.7% to $1.34 per share

• EBITDA Increases 23.4% to $126.7 Million

• EBITDA Increases 16.6% to $238.5 Million
BLOOMFIELD HILLS, MI, July 31, 2013 – Penske Automotive Group, Inc. (NYSE:PAG), an
international automotive retailer, announced today record second quarter income from continuing
operations and related earnings per share.	For the second quarter 2013, income from continuing
operations attributable to common shareholders increased 27.4% to $64.0 million and related
earnings per share increased 26.8% to $0.71 per share. This compares to income from continuing
operations attributable to common shareholders of $50.2 million, or $0.56 per share in the same
period last year.

Total revenue increased 11.6% to $3.7 billion, including a same-store retail revenue increase of 11.5%. The revenue increase was driven by a 14.1% increase in total retail unit sales, including a 12.3% increase on a same-store basis. Gross profit improved 12.7% to $569.0 million while operating income increased 24.9% to $113.7 million.

“Our business produced an outstanding quarter,” said Chairman Roger Penske. “We delivered solid growth across each area of our business, increased our service and parts margin by 160 basis points, leveraged selling, general and administrative expenses by 190 basis points and improved our operating income by 40 basis points to 3.1%. We continue to expect the U.S. and U.K. automotive markets to perform well, and we remain confident in our ability to continue growing our business.”


Highlights of the Second Quarter

•

Total Retail Unit Sales increased 14.1% to 93,639

•

+14.3% in the United States; +13.9% Internationally

•

New unit retail sales +11.6%

•

Used unit retail sales +17.4%

•

Same-store Retail Revenue increased 11.5%

•

New +11.4%; Used +13.2%; Finance & Insurance +16.4%; Service and Parts +6.6%

•

+13.2% in the United States; +8.5% Internationally

•

Average Transaction Price Per Unit

•

New $37,617; +1.1%

•

Used $25,567; -1.6%

•

Average Gross Profit Per Unit

•

New $2,807, -$181/unit; Gross Margin 7.5%, -50 basis points

•

Used $1,928, -$84/unit; Gross Margin 7.5%, -20 basis points

•

Finance & Insurance $1,024, +$33/unit

For the six months ended June 30, 2013, total revenue increased 9.6% to $7.1 billion and income from continuing operations attributable to common shareholders increased 20.8% to $120.9 million and related earnings per share increased 20.7% to $1.34 per share. This compares to income from continuing operations attributable to common shareholders of $100.0 million, and earnings per share of $1.11 per share in the same period last year.

Acquisitions

As previously announced, the company has signed an agreement to acquire a distributor of commercial vehicles, related spare parts and aftermarket support across Australia and New Zealand and portions of Southeast Asia from Transpacific Industries Group Limited. The business to be acquired, Western Star Trucks Australia, primarily distributes heavy and medium-duty trucks for Western Star, MAN Truck and Bus and Dennis Eagle Refuse Collection through a network of over 80 independent dealers while serving customers across a number of industries, including logistics, construction, mining, manufacturing, agricultural and waste/refuse collection. Closing of the transaction is expected to occur in the third quarter 2013. The transaction is subject to specified closing conditions, including OEM approval. Including vehicle inventory, parts, assets and goodwill, the company expects the total purchase price to be approximately $200 million which will be financed using available cash flow from operations and availability under the company’s credit and floorplan facilities.

The business to be acquired has a seasoned local management team which is expected to provide a seamless transition. Upon closing, the transaction is expected to generate approximately $420-460 million in estimated annual U.S. dollar-related revenues for Penske Automotive Group and is expected to be $0.10 to $0.14 accretive per fully diluted share on an annualized basis, excluding acquisition-related costs. Penske Automotive expects to incur $0.02 per share in acquisition-related costs in its third-quarter 2013.

Additionally, the company has been awarded new open points for a Toyota-Scion dealership in the Phoenix, Arizona, metropolitan market, a Hyundai dealership in the Austin, Texas, market, and a Bentley dealership in the Central New Jersey market.

Conference Call

Penske Automotive will host a conference call discussing financial results relating to the second quarter of 2013 on July 31, 2013, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (800) 762-4758 [International, please dial (480) 629-9035]. 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 second quarter 2013 financial results and Western Star Trucks Australia acquisition 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

., headquartered in Bloomfield Hills, Michigan, operates 324 retail automotive franchises, representing 39 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 172 franchises in 18 states and Puerto Rico and 152 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 17,000 employees.

Non-GAAP Financial Measures

This release contains certain non-GAAP financial measures as defined under SEC rules, such as earnings before interest, taxes, depreciation and amortization (“EBITDA”). 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, potential earnings, outlook, and ability to complete the aforementioned acquisition. 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, completion of closing conditions, 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, 2012, 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						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Revenues:
New Vehicle	$	1,930,040		$	1,711,868		$	3,678,822		$	3,261,792
Used Vehicle		1,082,310			936,978			2,084,338			1,872,273
Finance and Insurance, Net		95,849			81,279			182,595			159,242
Service and Parts		391,554			362,194			776,919			723,314
Fleet, Wholesale and Other		199,422			222,732			381,100			462,143

Total Revenues	$	3,699,175		$	3,315,051		$	7,103,774		$	6,478,764
Cost of Sales:
New Vehicle	$	1,786,015		$	1,574,457		$	3,399,029		$	2,994,512
Used Vehicle		1,000,703			864,454			1,924,164			1,723,791
Service and Parts		156,358			150,160			317,196			303,002
Fleet, Wholesale and Other		187,076			221,009			360,155			457,524

Total Cost of Sales		3,130,152			2,810,080			6,000,544			5,478,829
Gross Profit		569,023			504,971			1,103,230			999,935
SG&A Expenses		440,331			400,637			854,770			788,619
Depreciation		14,985			13,319			29,516			26,310

Operating Income		113,707			91,015			218,944			185,006
Floor Plan Interest Expense		(10,900	)		(9,845	)		(21,168	)		(19,368	)
Other Interest Expense		(12,066	)		(11,478	)		(23,793	)		(23,572	)
Equity in Earnings of Affiliates		8,901			8,168			11,249			12,578

Income from Continuing Operations Before Income Taxes		99,642			77,860			185,232			154,644
Income Taxes		(35,164	)		(27,093	)		(63,571	)		(53,926	)

Income from Continuing Operations		64,478			50,767			121,661			100,718
(Loss) from Discontinued Operations, Net of Tax		(1,983	)		(1,155	)		(1,147	)		(4,100	)

Net Income		62,495			49,612			120,514			96,618
Less: Income Attributable to Non-Controlling Interests		(453	)		(520	)		(808	)		(708	)

Net Income Attributable to Common Shareholders	$	62,042		$	49,092		$	119,706		$	95,910

Income from Continuing Operations Per Share	$	0.71		$	0.56		$	1.34		$	1.11

Income Per Share	$	0.69		$	0.54		$	1.32		$	1.06

Weighted Average Shares Outstanding		90,305			90,337			90,380			90,395

Amounts Attributable to Common Shareholders:
Reported Income from Continuing Operations	$	64,478		$	50,767		$	$121,661		$	100,718
Less: Income Attributable to Non-Controlling Interests		(453	)		(520	)		(808	)		(708	)

Income from Continuing Operations, net of tax	$	64,025		$	50,247		$	120,853		$	100,010
(Loss) Income from Discontinued Operations, net of tax		(1,983	)		(1,155	)		(1,147	)		(4,100	)

Net Income	$	62,042		$	49,092		$	119,706		$	95,910

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


	June 30,		December 31,
	2013		2012
Assets
Cash and Cash Equivalents	$	26,254	$	43,447
Accounts Receivable, Net		530,647		554,851
Inventories		2,125,771		2,000,206
Other Current Assets		90,352		90,485
Assets Held for Sale		33,849		73,398

Total Current Assets		2,806,873		2,762,387
Property and Equipment, Net		1,148,495		1,031,188
Intangibles		1,231,166		1,261,299
Other Long-Term Assets		351,098		324,116

Total Assets	$	5,537,632	$	5,378,990

Liabilities and Equity
Floor Plan Notes Payable	$	1,474,440	$	1,408,362
Floor Plan Notes Payable – Non-Trade		753,130		725,526
Accounts Payable		314,050		263,881
Accrued Expenses		226,968		223,972
Current Portion Long-Term Debt		44,896		19,493
Liabilities Held for Sale		23,547		51,279

Total Current Liabilities		2,837,031		2,692,513
Long-Term Debt		875,307		918,024
Other Long-Term Liabilities		469,029		452,132

Total Liabilities		4,181,367		4,062,669
Equity		1,356,265		1,316,321

Total Liabilities and Equity	$	5,537,632	$	5,378,990

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


	Three Months Ended
	June 30,
								% Increase/
	2013			2012				(Decrease)
Revenues:
New Vehicle	$	1,930,040		$	1,711,868				12.7	%
Used Vehicle		1,082,310			936,978				15.5	%
Finance and Insurance, Net		95,849			81,279				17.9	%
Service and Parts		391,554			362,194				8.1	%
Fleet, Wholesale and Other		199,422			222,732				(10.5	%)

Total Revenues	$	3,699,175		$	3,315,051				11.6	%
Cost of Sales:
New Vehicle	$	1,786,015		$	1,574,457				13.4	%
Used Vehicle		1,000,703			864,454				15.8	%
Service and Parts		156,358			150,160				4.1	%
Fleet, Wholesale and Other		187,076			221,009				(15.4	%)

Total Cost of Sales		3,130,152			2,810,080				11.4	%
Gross Profit		569,023			504,971				12.7	%
SG&A Expenses		440,331			400,637				9.9	%
Depreciation		14,985			13,319				12.5	%

Operating Income		113,707			91,015				24.9	%
Floor Plan Interest Expense		(10,900	)		(9,845	)			10.7	%
Other Interest Expense		(12,066	)		(11,478	)			5.1	%
Equity in Earnings of Affiliates		8,901			8,168				9.0	%
Income from Continuing Operations Before Income Taxes		99,642			77,860				28.0	%
Income Taxes		(35,164	)		(27,093	)	(		29.8	%

Income from Continuing Operations		64,478			50,767				27.0	%
(Loss) from Discontinued Operations, Net of Tax		(1,983	)		(1,155	)			71.7	%

Net Income		62,495			49,612				26.0	%
Less: Income Attributable to Non-Controlling Interests		(453	)		(520	)			(12.9	%)

Net Income Attributable to Common Shareholders	$	62,042		$	49,092				26.4	%

Income from Continuing Operations Per Share	$	0.71		$	0.56				26.8	%

Income Per Share	$	0.69		$	0.54				27.8	%

Weighted Average Shares Outstanding		90,305			90,337				0.0	%

Amounts Attributable to Common Shareholders:
Reported Income from Continuing Operations	$	64,478		$	50,767				27.0	%
Less: Income Attributable to Non-Controlling Interests		(453	)		(520	)			(12.9	%)

Income from Continuing Operations, net of tax	$	64,025		$	50,247				27.4	%
(Loss) Income from Discontinued Operations, net of tax		(1,983	)		(1,155	)			71.7	%

Net Income	$	62,042		$	49,092				26.4	%

PENSKE AUTOMOTIVE GROUP, INC.
Selected Data
(Unaudited)


	Three Months Ended
	June 30,
							% Increase/
	2013			2012			(Decrease)
Total Retail Units:
New Retail		51,307			45,987			11.6	%
Used Retail		42,332			36,048			17.4	%

Total Retail		93,639			82,035			14.1	%

Same-Store Retail Units:
New Same-Store Retail		50,084			45,453			10.2	%
Used Same-Store Retail		41,061			35,723			14.9	%

Total Same-Store Retail		91,145			81,176			12.3	%

Same-Store Retail Revenue: (Amounts in thousands)
New Vehicles	$	1,884,391		$	1,691,192			11.4	%
Used Vehicles		1,054,784			931,746			13.2	%
Finance and Insurance, Net		94,043			80,808			16.4	%
Service and Parts		381,812			358,126			6.6	%

Total Same-Store Retail	$	3,415,030		$	3,061,872			11.5	%

Revenue Mix:
New Vehicles		52.2	%		51.6	%	60 bps
Used Vehicles		29.3	%		28.3	%	100 bps
Finance and Insurance, Net		2.6	%		2.5	%	10 bps
Service and Parts		10.6	%		10.9	%	(30 bps)
Fleet, Wholesale and Other		5.3	%		6.7	%	(140 bps)
Average Revenue per Vehicle Retailed:
New Vehicles	$	37,617		$	37,225			1.1	%
Used Vehicles		25,567			25,993			(1.6	%)
Gross Profit per Vehicle Retailed:
New Vehicles	$	2,807		$	2,988			(6.1	%)
Used Vehicles		1,928			2,012			(4.2	%)
Finance and Insurance		1,024			991			3.3	%
Operating items as a percentage of revenue:
New Vehicle Gross Profit		7.5	%		8.0	%	(50 bps)
Used Vehicle Gross Profit		7.5	%		7.7	%	(20 bps)
Service and Parts Gross Profit		60.1	%		58.5	%	160 bps
Total Gross Profit		15.4	%		15.2	%	20 bps
Selling, General and Admin. Expenses		11.9	%		12.1	%	(20 bps)
Operating Income		3.1	%		2.7	%	40 bps
Inc. From Cont. Ops. Before Inc. Taxes		2.7	%		2.3	%	40 bps
Operating items as a percentage of total gross profit:
Selling, General and Administrative Expenses		77.4	%		79.3	%	(190 bps)
Operating Income		20.0	%		18.0	%	200 bps

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


	Three Months Ended
	June 30,
					% Increase/
	2013		2012		(Decrease)
Other (Amounts in Thousands):
EBITDA *	$	126,693	$	102,657		23.4	%
Rent Expense		44,961		43,184		4.1	%
Floorplan Credits		6,478		6,428		0.8	%

* See the following Non-GAAP reconciliation tables

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


	Six Months Ended
	June 30,
							% Increase/
	2013			2012			(Decrease)
Revenues:
New Vehicle	$	3,678,822		$	3,261,792			12.8	%
Used Vehicle		2,084,338			1,872,273			11.3	%
Finance and Insurance, Net		182,595			159,242			14.7	%
Service and Parts		776,919			723,314			7.4	%
Fleet, Wholesale and Other		381,100			462,143			(17.5	%)

Total Revenues	$	7,103,774		$	6,478,764			9.6	%
Cost of Sales:
New Vehicle	$	3,399,029		$	2,994,512			13.5	%
Used Vehicle		1,924,164			1,723,791			11.6	%
Service and Parts		317,196			303,002			4.7	%
Fleet, Wholesale and Other		360,155			457,524			(21.3	%)

Total Cost of Sales		6,000,544			5,478,829			9.5	%
Gross Profit		1,103,230			999,935			10.3	%
SG&A Expenses		854,770			788,619			8.4	%
Depreciation		29,516			26,310			12.2	%

Operating Income		218,944			185,006			18.3	%
Floor Plan Interest Expense		(21,168	)		(19,368	)		9.3	%
Other Interest Expense		(23,793	)		(23,572	)		0.9	%
Equity in Earnings of Affiliates		11,249			12,578			(10.6	%)

Income from Continuing Operations Before Income Taxes		185,232			154,644			19.8	%
Income Taxes		(63,571	)		(53,926	)		17.9	%

Income from Continuing Operations		121,661			100,718			20.8	%
(Loss) from Discontinued Operations, Net of Tax		(1,147	)		(4,100	)		(72.0	%)

Net Income		120,514			96,618			24.7	%
Less: Income Attributable to Non-Controlling Interests		(808	)		(708	)		14.1	%

Net Income Attributable to Common Shareholders	$	119,706		$	95,910			24.8	%

Income from Continuing Operations Per Share	$	1.34		$	1.11			20.7	%

Income Per Share	$	1.32		$	1.06			24.5	%

Weighted Average Shares Outstanding		90,380			90,395			0.0	%

Amounts Attributable to Common Shareholders:
Reported Income from Continuing Operations	$	121,661		$	100,718			20.8	%
Less: Income Attributable to Non-Controlling Interests		(808	)		(708	)		14.1	%

Income from Continuing Operations, net of tax	$	120,853		$	100,010			20.8	%
(Loss) Income from Discontinued Operations, net of tax		(1,147	)		(4,100	)		(72.0	%)

Net Income	$	119,706		$	95,910			24.8	%

PENSKE AUTOMOTIVE GROUP, INC.
Selected Data
(Unaudited)


	Six Months Ended
	June 30,
							% Increase/
	2013			2012			(Decrease)
Total Retail Units:
New Retail		97,270			87,914			10.6	%
Used Retail		82,429			72,519			13.7	%

Total Retail		179,699			160,433			12.0	%

Same-Store Retail Units:
New Same-Store Retail		94,120			86,746			8.5	%
Used Same-Store Retail		79,304			71,778			10.5	%

Total Same-Store Retail		173,424			158,524			9.4	%

Same-Store Retail Revenue: (Amounts in thousands)
New Vehicles	$	3,566,038		$	3,220,917			10.7	%
Used Vehicles		2,020,907			1,860,114			8.6	%
Finance and Insurance, Net		178,415			157,909			13.0	%
Service and Parts		750,489			716,496			4.7	%

Total Same-Store Retail	$	6,515,849		$	5,955,436			9.4	%

Revenue Mix:
New Vehicles		51.8	%		50.3	%	150 bps
Used Vehicles		29.3	%		28.9	%	40 bps
Finance and Insurance, Net		2.6	%		2.5	%	10 bps
Service and Parts		10.9	%		11.2	%	(30 bps)
Fleet, Wholesale and Other		5.4	%		7.1	%	(170 bps)
Average Revenue per Vehicle Retailed:
New Vehicles	$	37,821		$	37,102			1.9	%
Used Vehicles		25,286			25,818			(2.1	%)
Gross Profit per Vehicle Retailed:
New Vehicles	$	2,877		$	3,040			(5.4	%)
Used Vehicles		1,943			2,048			(5.1	%)
Finance and Insurance		1,016			993			2.4	%
Operating items as a percentage of revenue:
New Vehicle Gross Profit		7.6	%		8.2	%	(60 bps)
Used Vehicle Gross Profit		7.7	%		7.9	%	(20 bps)
Service and Parts Gross Profit		59.2	%		58.1	%	110 bps
Total Gross Profit		15.5	%		15.4	%	10 bps
Selling, General and Admin. Expenses		12.0	%		12.2	%	(20 bps)
Operating Income		3.1	%		2.9	%	20 bps
Inc. From Cont. Ops. Before Inc. Taxes		2.6	%		2.4	%	20 bps
Operating items as a percentage of total gross profit:
Selling, General and Administrative Expenses		77.5	%		78.9	%	(140 bps)
Operating Income		19.8	%		18.5	%	130 bps

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


	Six Months Ended
	June 30,
					% Increase/
	2013		2012		(Decrease)
Other (Amounts in Thousands):
EBITDA *	$	238,541	$	204,526		16.6	%
Rent Expense		89,472		86,119		3.9	%
Floorplan Credits		12,645		11,205		12.9	%

* See the following Non-GAAP reconciliation tables

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


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Brand Revenue Mix:
Premium:
BMW		24	%		24	%		25	%		24	%
Audi		13	%		12	%		13	%		12	%
Mercedes-Benz		11	%		11	%		11	%		11	%
Lexus		4	%		4	%		4	%		4	%
Land Rover		4	%		4	%		4	%		5	%
Porsche		5	%		5	%		5	%		5	%
Ferrari / Maserati		3	%		3	%		3	%		3	%
Acura		1	%		2	%		2	%		2	%
Other		3	%		3	%		2	%		3	%

Total Premium		68	%		68	%		69	%		69	%
Foreign:
Toyota		11	%		11	%		11	%		10	%
Honda		11	%		11	%		10	%		11	%
Nissan		2	%		2	%		2	%		2	%
Volkswagen		2	%		2	%		2	%		2	%
Other		2	%		2	%		2	%		2	%

Total Foreign		28	%		28	%		27	%		27	%
Domestic Big 3
General Motors / Chrysler / Ford		4	%		4	%		4	%		4	%
Revenue Mix:
U.S.		66	%		64	%		64	%		63	%
International		34	%		36	%		36	%		37	%

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

Reconciliation of net income to EBITDA for the three months and six months ended June 30, 2013 and 2012:


	Three Months Ended
	June 30,
					% Increase/
(Amounts in Thousands)	2013		2012		(Decrease)
Net Income	$	62,495	$	49,612		26.0	%
Depreciation		14,985		13,319		12.5	%
Other Interest Expense		12,066		11,478		5.1	%
Income Taxes		35,164		27,093		29.8	%
Loss (income) from Discontinued Operations, net		1,983		1,155		71.7	%

EBITDA	$	126,693	$	102,657		23.4	%


	Six Months Ended
	June 30,
					% Increase/
(Amounts in Thousands)	2013		2012		(Decrease)
Net Income	$	120,514	$	96,618		24.7	%
Depreciation		29,516		26,310		12.2	%
Other Interest Expense		23,793		23,572		0.9	%
Income Taxes		63,571		53,926		17.9	%
Loss (income) from Discontinued Operations, net		1,147		4,100		(72.0	%)

EBITDA	$	238,541	$	204,526		16.6	%

# # # # # # #

PENSKE AUTOMOTIVE GROUP, INC. - FORM 8-K - EX-99.1 - July 31, 2013

Attached files

PENSKE AUTOMOTIVE GROUP, INC. Reports