Attached files
| file | filename |
|---|---|
| 8-K - LIVE FILING - PENSKE AUTOMOTIVE GROUP, INC. | htm_54553.htm |
FOR IMMEDIATE RELEASE |
PENSKE AUTOMOTIVE REPORTS RECORD FOURTH QUARTER AND FULL YEAR RESULTS
Full Year Income From Continuing Operations of $343.9 Million and Earnings Per Share of $4.00
Q4 Income from Continuing Operations of $82.5 Million and Earnings Per Share of $0.97
Q4 Adjusted Income from Continuing Operations of $77.4 Million and
Adjusted Earnings Per Share of $0.91
| Fourth Quarter 2016 | Twelve Months 2016 | |
Revenue Decreases 0.7% to $4.9 Billion, Excluding Foreign Exchange Increases 5.7% |
Revenue Increases 4.3% to $20.1 Billion, Excluding Foreign Exchange Increases 8.6% |
|
Same-Store Retail Revenue Decreases 3.8%, Excluding Foreign Exchange Increases 2.8% |
Same-Store Retail Revenue Decreases 0.6%, Excluding Foreign Exchange Increases 3.8% |
|
Adjusted Income from Continuing Operations Attributable to Common Shareholders Increases 6.5% to $77.4 Million, Excluding Foreign Exchange Increases 12.0% |
Adjusted Income from Continuing Operations Attributable to Common Shareholders Increases 2.8% to $338.8 Million, Excluding Foreign Exchange Increases 7.4% |
|
Adjusted Earnings Per Share from Continuing Operations Attributable to Common Shareholders Increases 12.3% to $0.91, Excluding Foreign Exchange Increases 18.5% |
Adjusted Earnings Per Share from Continuing Operations Attributable to Common Shareholders Increases 7.1% to $3.93, Excluding Foreign Exchange Increases 12.0% |
|
BLOOMFIELD HILLS, MI, February 7, 2016 – Penske Automotive Group, Inc. (NYSE:PAG), an international transportation services company, announced today record fourth quarter and full-year results. For the three months ended December 31, 2016, income from continuing operations attributable to common shareholders increased 13.5% to $82.5 million, and related earnings per share increased 19.8% to $0.97, when compared to the same period last year. Income from continuing operations and earnings per share include a $5.1 million income tax benefit from the revaluation of a deferred tax liability on our Premier Truck Group investment. Excluding the $5.1 million income tax benefit, adjusted income from continuing operations increased 6.5% to $77.4 million, and related earnings per share increased 12.3% to $0.91.
For the three months ended December 31, 2016, total automotive retail units increased 1.8% while revenue decreased 0.7% to $4.9 billion and same-store retail revenue declined 3.8%. Excluding foreign exchange, total revenue increased 5.7% and same-store retail revenue increased 2.8%. Foreign exchange rates negatively impacted revenues by approximately $313 million, income from continuing operations by $4 million, and earnings per share attributable to common shareholders by $0.05 for the three months ended December 31, 2016.
Commenting on the company’s results, Penske Automotive Group Chairman Roger S. Penske said, “The recently completed year was the best in the history of our company. In addition to achieving new performance records, we took meaningful steps to expand, enhance and further diversify our business through strategic investments and acquisitions, particularly within the used vehicle market in both the U.S. and U.K.” Penske continued, “In the fourth quarter, our retail automotive business continued to perform well and I was particularly pleased to see increases in new vehicle, used vehicle and finance & insurance gross profit per vehicle retailed when excluding foreign exchange.”
For the twelve months ended December 31, 2016, total automotive units retailed increased 5.8% while revenue increased 4.3% to $20.1 billion, and same-store retail revenue declined 0.6%. Excluding foreign exchange, total revenue increased 8.6% to $20.9 billion and same-store retail revenue increased 3.8%. Income from continuing operations attributable to common shareholders increased 4.3% to $343.9 million, and related earnings per share increased 9.0% to $4.00 when compared to the same period last year. Income from continuing operations and earnings per share include a $5.1 million income tax benefit from the revaluation of a deferred tax liability on our Premier Truck Group investment. Excluding the $5.1 million income tax benefit, adjusted income from continuing operations attributable to common shareholders increased 2.8% to $338.8 million and related earnings per share increased 7.1% to $3.93 when compared to the same period last year. Foreign exchange rates negatively impacted revenues by approximately $827 million, income from continuing operations by $15 million, and earnings per share attributable to common shareholders by $0.18 for the twelve months ended December 31, 2016.
Automotive Retail Highlights of the Fourth Quarter — Note: f/x = foreign exchange
Retail Unit Sales +1.8% to 112,129
New unit retail sales +4.0%
Used unit retail sales -0.8%
Same-Store Retail Unit Sales -2.2% to 106,948
New unit retail sales -0.3%
Used unit retail sales -4.3%
Same-Store Retail Revenue -3.8%; excluding f/x +2.8%
New -3.3%; Used -6.0%; Finance & Insurance -2.8%; Service and Parts -0.2%
Excluding f/x: New +2.5%; Used +2.4%; Finance & Insurance +4.0%; Service and Parts +4.8%
Average Gross Profit Per Unit
New $2,988, -$62/unit; Gross Margin 7.9%, flat
Excluding f/x $3,189, +$139/unit
Used $1,472, +$50/unit; Gross Margin 5.5%, +30 basis points
Excluding f/x $1,580, +$158/unit
Finance & Insurance $1,087, -$23/unit
Excluding f/x $1,164, +$54/unit
Retail Commercial Truck Operations
The company operates twenty locations in the U.S. and Canada under the “Premier Truck Group” brand name, offering primarily the Freightliner and Western Star brands. For the three and twelve months ended December 31, 2016, Premier Truck Group retailed 1,562 and 7,110 units, generated $218.4 million and $1.0 billion of revenue, and $33.2 million and $142.9 million of gross profit, respectively, principally through the retail sale of new/used medium and heavy-duty trucks and service/parts sales. Service and parts gross profit represents approximately 82% and 79% of total Premier Truck Group gross profit for the three and twelve months ended December 31, 2016, respectively.
Penske Truck Leasing
In July 2016, the company acquired an additional 14.4% interest in Penske Truck Leasing Co., L.P. (“PTL”), a leading provider of full-service truck leasing, truck rental, contract maintenance and logistics services, bringing our ownership interest to 23.4%. PTL’s revenue in 2016 was $6.4 billion. PTL has $8.3 billion in revenue earning equipment assets and generated $2.3 billion in earnings before interest, taxes, depreciation and amortization in 2016. We account for our ownership interest in PTL using the equity method of accounting and accordingly recorded $25.0 million and $61.6 million in earnings as part of equity in earnings of affiliates for the three and twelve months ended December 31, 2016, respectively.
Acquisitions and Open Points
During the twelve months ended December 31, 2016, the company had acquisitions or opened new dealerships representing approximately $700 million in estimated annual revenue. Subsequent to December 31, 2016, the company completed the acquisition of U.S.-based CarSense, a specialty retailer of used vehicles, which is expected to generate $350 million in estimated annual revenue and accretion of $0.07 to $0.09 in earnings per share on an annualized basis.
Additionally, in January 2017, the company announced that it has signed an agreement to acquire CarShop, one of the U.K.’s leading retailers of used vehicles. CarShop has five large-scale retail locations operating in Cardiff, Swindon, Northampton, Norwich and Doncaster, plus a 15-acre vehicle preparation center. The acquisition is subject to certain conditions and is expected to close by the end of the first quarter of 2017. CarShop is expected to generate estimated annualized revenue of approximately $340 million with accretion estimated to be $0.07 to $0.09 per share on an annualized basis.
Share Repurchases
During the twelve months ended December 31, 2016, the company acquired 4.5 million shares of its common stock for approximately $167.9 million. As of December 31, 2016, the company has a remaining share repurchase authorization of approximately $32.1 million.
Conference Call
Penske Automotive will host a conference call discussing financial results relating to the fourth quarter of 2016 on Tuesday, February 7, 2017, at 2:00 p.m. Eastern Standard Time. To listen to the conference call, participants must dial (800) 553-5275 — [International, please dial (612) 332-0530]. The call will also be simultaneously broadcast over the Internet through the Investor Relations section of the Penske Automotive Group website. Additionally, an investor presentation relating to the fourth quarter 2016 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, 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 employs more than 24,000 people worldwide and is a member of the Fortune 500 and Russell 2000. 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 and related earnings per share, and 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, earnings, and our ability to consummate certain transactions. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others: fulfillment of closing conditions on announced acquisitions, economic conditions generally, conditions in the credit markets and changes in interest rates and foreign currency exchange rates, adverse conditions affecting a particular manufacturer, including the adverse impact to the vehicle and parts supply chain due to 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’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, 2015, 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:
J.D. Carlson Executive Vice President and Chief Financial Officer Penske Automotive Group, Inc. 248-648-2810 jcarlson@penskeautomotive.com |
Anthony R. Pordon Executive Vice President Investor Relations and Corporate Development Penske Automotive Group, Inc. 248-648-2540 tpordon@penskeautomotive.com |
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# # #
PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Condensed Statements of Income
(Amounts In Millions, Except Per Share Data)
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||
| Increase/ | Increase/ | |||||||||||||||||||||||||
| 2016 | 2015 | (Decrease) | 2016 | 2015 | (Decrease) | |||||||||||||||||||||
| Revenue | $ | 4,887.8 | $ | 4,921.3 | (0.7 | %) | $20,118.5 | $ | 19,284.9 | 4.3 | % | |||||||||||||||
| Cost of Sales | 4,160.5 | 4,204.2 | (1.0 | %) | 17,151.9 | 16,417.4 | 4.5 | % | ||||||||||||||||||
Gross Profit
|
727.3 | 717.1 | 1.4 | % | 2,966.6 | 2,867.5 | 3.5 | % | ||||||||||||||||||
SG&A Expenses
|
579.2 | 570.7 | 1.5 | % | 2,302.0 | 2,223.0 | 3.6 | % | ||||||||||||||||||
Depreciation
|
22.9 | 20.3 | 12.8 | % | 89.7 | 78.0 | 15.0 | % | ||||||||||||||||||
Operating Income
|
$ | 125.2 | $ | 126.1 | (0.7 | %) | $ | 574.9 | $ | 566.5 | 1.5 | % | ||||||||||||||
Floor Plan Interest Expense
|
(13.1 | ) | (11.8 | ) | 11.0 | % | (50.9 | ) | (44.5 | ) | 14.4 | % | ||||||||||||||
Other Interest Expense
|
(23.6 | ) | (20.4 | ) | 15.7 | % | (85.4 | ) | (69.4 | ) | 23.1 | % | ||||||||||||||
Equity in Earnings of Affiliates
|
26.4 | 9.6 | 175.0 | % | 69.5 | 39.3 | 76.8 | % | ||||||||||||||||||
Income from Continuing Operations Before Income Taxes
|
$ | 114.9 | $ | 103.5 | 11.0 | % | $ | 508.1 | $ | 491.9 | 3.3 | % | ||||||||||||||
Income Taxes
|
(32.3 | ) | (29.8 | ) | 8.4 | % | (160.7 | ) | (158.0 | ) | 1.7 | % | ||||||||||||||
Income from Continuing Operations
|
$ | 82.6 | $ | 73.7 | 12.1 | % | $ | 347.4 | $ | 333.9 | 4.0 | % | ||||||||||||||
Income/(Loss) from Discontinued Operations, net of tax
|
0.1 | (2.4 | ) | nm | (1.0 | ) | (3.5 | ) | (71.4 | %) | ||||||||||||||||
Net Income
|
$ | 82.7 | $ | 71.3 | 16.0 | % | $ | 346.4 | $ | 330.4 | 4.8 | % | ||||||||||||||
Less: Income Attributable to Non-Controlling Interests
|
0.1 | 1.0 | nm | 3.5 | 4.3 | (18.6 | %) | |||||||||||||||||||
Net Income Attributable to Common Shareholders
|
$ | 82.6 | $ | 70.3 | 17.5 | % | $ | 342.9 | $ | 326.1 | 5.2 | % | ||||||||||||||
Amounts Attributable to Common Shareholders:
|
||||||||||||||||||||||||||
Reported Income from Continuing Operations
|
$ | 82.6 | $ | 73.7 | 12.1 | % | $ | 347.4 | $ | 333.9 | 4.0 | % | ||||||||||||||
Less: Income Attributable to Non-Controlling Interests
|
0.1 | 1.0 | nm | 3.5 | 4.3 | (18.6 | %) | |||||||||||||||||||
Income from Continuing Operations, net of tax
|
$ | 82.5 | $ | 72.7 | 13.5 | % | $ | 343.9 | $ | 329.6 | 4.3 | % | ||||||||||||||
Income/(Loss) from Discontinued Operations, net of tax
|
0.1 | (2.4 | ) | nm | (1.0 | ) | (3.5 | ) | nm | |||||||||||||||||
Net Income Attributable to Common Shareholders
|
$ | 82.6 | $ | 70.3 | 17.5 | % | $ | 342.9 | $ | 326.1 | 5.2 | % | ||||||||||||||
Income from Continuing Operations Per Share
|
$ | 0.97 | $ | 0.81 | 19.8 | % | $ | 4.00 | $ | 3.67 | 9.0 | % | ||||||||||||||
Income Per Share
|
$ | 0.97 | $ | 0.78 | 24.4 | % | $ | 3.99 | $ | 3.63 | 9.9 | % | ||||||||||||||
Weighted Average Shares Outstanding
|
85.2 | 89.8 | (5.1 | %) | 86.0 | 89.8 | (4.2 | %) | ||||||||||||||||||
nm – not meaningful
PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Condensed Balance Sheets
(Amounts In Millions)
(Unaudited)
| December 31, | December 31, | |||||||
| 2016 | 2015 | |||||||
Assets: |
||||||||
Cash and Cash Equivalents |
$ | 24.0 | $ | 62.4 | ||||
Accounts Receivable, Net |
879.0 | 782.3 | ||||||
Inventories |
3,408.2 | 3,463.5 | ||||||
Other Current Assets |
102.0 | 85.6 | ||||||
Assets Held for Sale |
8.3 | 12.7 | ||||||
Total Current Assets |
4,421.5 | 4,406.5 | ||||||
Property and Equipment, Net |
1,806.5 | 1,520.1 | ||||||
Intangibles |
1,711.4 | 1,731.2 | ||||||
Other Long-Term Assets |
921.7 | 355.6 | ||||||
Total Assets |
$ | 8,861.1 | $ | 8,013.4 | ||||
Liabilities and Equity: |
||||||||
Floor Plan Notes Payable |
$ | 2,084.5 | $ | 2,247.2 | ||||
Floor Plan Notes Payable – Non-Trade |
1,233.3 | 1,132.4 | ||||||
Accounts Payable |
497.4 | 493.8 | ||||||
Accrued Expenses |
360.0 | 378.1 | ||||||
Current Portion Long-Term Debt |
48.3 | 28.0 | ||||||
Liabilities Held for Sale |
6.1 | 6.2 | ||||||
Total Current Liabilities |
4,229.6 | 4,285.7 | ||||||
Long-Term Debt |
1,828.8 | 1,247.0 | ||||||
Other Long-Term Liabilities |
1,023.2 | 645.8 | ||||||
Total Liabilities |
7,081.6 | 6,178.5 | ||||||
Equity |
1,779.5 | 1,834.9 | ||||||
Total Liabilities and Equity |
$ | 8,861.1 | $ | 8,013.4 | ||||
PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Operations
Selected Data
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
Geographic Revenue Mix: |
||||||||||||||||
North America |
63 | % | 62 | % | 60 | % | 61 | % | ||||||||
U.K. |
29 | % | 31 | % | 32 | % | 33 | % | ||||||||
Other International |
8 | % | 7 | % | 8 | % | 6 | % | ||||||||
Total |
100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Revenue: (Amounts in Millions) |
||||||||||||||||
Retail Automotive |
$ | 4,551.4 | $ | 4,568.8 | $ | 18,673.2 | $ | 17,896.3 | ||||||||
Retail Commercial Trucks |
218.4 | 241.0 | 1,000.7 | 944.1 | ||||||||||||
Commercial Vehicles Australia/Power Systems and Other |
118.0 | 111.5 | 444.6 | 444.5 | ||||||||||||
Total |
$ | 4,887.8 | $ | 4,921.3 | $ | 20,118.5 | $ | 19,284.9 | ||||||||
Gross Profit: (Amounts in Millions) |
||||||||||||||||
Retail Automotive |
$ | 663.1 | $ | 653.7 | $ | 2,704.8 | $ | 2,608.0 | ||||||||
Retail Commercial Trucks |
33.2 | 35.9 | 142.9 | 147.0 | ||||||||||||
Commercial Vehicles Australia/Power Systems and Other |
31.0 | 27.5 | 118.9 | 112.5 | ||||||||||||
Total |
$ | 727.3 | $ | 717.1 | $ | 2,966.6 | $ | 2,867.5 | ||||||||
Gross Margin: |
||||||||||||||||
Retail Automotive |
14.6 | % | 14.3 | % | 14.5 | % | 14.6 | % | ||||||||
Retail Commercial Trucks |
15.2 | % | 14.9 | % | 14.3 | % | 15.6 | % | ||||||||
Commercial Vehicles Australia/Power Systems and Other |
26.3 | % | 24.7 | % | 26.7 | % | 25.3 | % | ||||||||
Total |
14.9 | % | 14.6 | % | 14.7 | % | 14.9 | % | ||||||||
PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Operations
Selected Data
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||
| Increase/ | Increase/ | |||||||||||||||||||
| 2016 | 2015 | (Decrease) | 2016 | 2015 | (Decrease) | |||||||||||||||
Operating Items as a Percentage of Revenue: |
||||||||||||||||||||
Gross Profit
|
14.9 | % | 14.6 | % | 30 bps | 14.7 | % | 14.9 | % | (20 bps) | ||||||||||
Selling, General and Administrative Expenses |
11.8% |
11.6% |
20 bps |
11.4% |
11.5% |
(10 bps) |
||||||||||||||
Operating Income
|
2.6 | % | 2.6 | % | — | 2.9 | % | 2.9 | % | — | ||||||||||
Inc. From Cont. Ops. Before Inc. Taxes
|
2.4 | % | 2.1 | % | 30 bps | 2.5 | % | 2.6 | % | (10 bps) | ||||||||||
| Operating Items as a Percentage of Total Gross Profit: |
||||||||||||||||||||
Selling, General and Administrative Expenses |
79.6% |
79.6% |
— |
77.6% |
77.5% |
10 bps |
||||||||||||||
Operating Income
|
17.2 | % | 17.6 | % | (40 bps) | 19.4 | % | 19.8 | % | (40 bps) | ||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||
| 2016 | 2015 | Increase/ (Decrease) | 2016 | 2015 | Increase/ (Decrease) | |||||||||||||||||||
| (Amounts in Millions) | ||||||||||||||||||||||||
EBITDA*
|
$ 161.4 |
$ 144.2 |
11.9% |
$683.2 |
$639.3 |
6.9% |
||||||||||||||||||
Floorplan Credits
|
$ | 10.2 | $ | 8.2 | 24.4 | % | $ | 39.5 | $ | 32.0 | 23.4 | % | ||||||||||||
Rent Expense
|
$ | 52.3 | $ | 51.9 | 0.8 | % | $ | 206.6 | $ | 201.8 | 2.4 | % | ||||||||||||
| * | See the following Non-GAAP reconciliation table. |
PENSKE AUTOMOTIVE GROUP, INC.
Retail Automotive Operations
Selected Data
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
Retail Automotive Units: |
||||||||||||||||
New Retail |
62,786 | 60,364 | 249,695 | 233,524 | ||||||||||||
Used Retail |
49,343 | 49,741 | 207,556 | 198,459 | ||||||||||||
Total |
112,129 | 110,105 | 457,251 | 431,983 | ||||||||||||
Retail Automotive Revenue: (Amounts in Millions) |
||||||||||||||||
New Vehicles |
$ | 2,368.7 | $ | 2,338.4 | $ | 9,547.1 | $ | 9,208.9 | ||||||||
Used Vehicles |
1,332.2 | 1,364.8 | 5,663.7 | 5,425.5 | ||||||||||||
Finance and Insurance, Net |
121.9 | 122.2 | 495.0 | 478.3 | ||||||||||||
Service and Parts |
482.1 | 472.9 | 1,948.6 | 1,830.7 | ||||||||||||
Fleet and Wholesale |
246.5 | 270.5 | 1,018.8 | 952.9 | ||||||||||||
Total Revenue |
$ | 4,551.4 | $ | 4,568.8 | $ | 18,673.2 | $ | 17,896.3 | ||||||||
Retail Automotive Gross Profit: (Amounts in Millions) |
||||||||||||||||
New Vehicles |
$ | 187.6 | $ | 184.2 | $ | 733.8 | $ | 706.9 | ||||||||
Used Vehicles |
72.7 | 70.7 | 330.5 | 328.3 | ||||||||||||
Finance and Insurance, Net |
121.9 | 122.2 | 495.0 | 478.3 | ||||||||||||
Service and Parts |
278.7 | 273.7 | 1,129.7 | 1,084.0 | ||||||||||||
Fleet and Wholesale |
2.2 | 2.9 | 15.8 | 10.5 | ||||||||||||
Total Gross Profit |
$ | 663.1 | $ | 653.7 | $ | 2,704.8 | $ | 2,608.0 | ||||||||
Retail Automotive Revenue Per Vehicle Retailed: |
||||||||||||||||
New Vehicles |
$ | 37,726 | $ | 38,738 | $ | 38,235 | $ | 39,434 | ||||||||
Used Vehicles |
26,999 | 27,439 | 27,287 | 27,338 | ||||||||||||
Retail Automotive Gross Profit Per Vehicle Retailed: |
||||||||||||||||
New Vehicles |
$ | 2,988 | $ | 3,050 | $ | 2,939 | $ | 3,027 | ||||||||
Used Vehicles |
1,472 | 1,422 | 1,592 | 1,654 | ||||||||||||
Finance & Insurance |
1,087 | 1,110 | 1,082 | 1,107 | ||||||||||||
PENSKE AUTOMOTIVE GROUP, INC.
Retail Automotive Operations
Selected Data
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
Retail Automotive Revenue Mix Percentages: |
||||||||||||||||
New Vehicles |
52.0 | % | 51.2 | % | 51.1 | % | 51.5 | % | ||||||||
Used Vehicles |
29.3 | % | 29.9 | % | 30.3 | % | 30.3 | % | ||||||||
Finance and Insurance, Net |
2.7 | % | 2.7 | % | 2.7 | % | 2.7 | % | ||||||||
Service and Parts |
10.6 | % | 10.4 | % | 10.4 | % | 10.2 | % | ||||||||
Fleet and Wholesale |
5.4 | % | 5.8 | % | 5.5 | % | 5.3 | % | ||||||||
Total |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Retail Automotive Gross Profit Mix Percentages: |
||||||||||||||||
New Vehicles |
28.3 | % | 28.2 | % | 27.1 | % | 27.1 | % | ||||||||
Used Vehicles |
11.0 | % | 10.8 | % | 12.2 | % | 12.6 | % | ||||||||
Finance and Insurance, Net |
18.4 | % | 18.7 | % | 18.3 | % | 18.3 | % | ||||||||
Service and Parts |
42.0 | % | 41.9 | % | 41.8 | % | 41.6 | % | ||||||||
Fleet and Wholesale |
0.3 | % | 0.4 | % | 0.6 | % | 0.4 | % | ||||||||
Total |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||
| Increase/ | Increase/ | |||||||||||||||||||||||
| 2016 | 2015 | (Decrease) | 2016 | 2015 | (Decrease) | |||||||||||||||||||
Retail Automotive Gross Margin: |
||||||||||||||||||||||||
New Vehicles |
7.9 | % | 7.9 | % | — | 7.7 | % | 7.7 | % | — | ||||||||||||||
Used Vehicles |
5.5 | % | 5.2 | % | 30 bps | 5.8 | % | 6.1 | % | (30 bps) | ||||||||||||||
Service and Parts |
57.8 | % | 57.9 | % | (10 bps) | 58.0 | % | 59.2 | % | (120 bps) | ||||||||||||||
Fleet and Wholesale |
0.9 | % | 1.1 | % | (20 bps) | 1.6 | % | 1.1 | % | 50 bps | ||||||||||||||
Total Gross Margin |
14.6 | % | 14.3 | % | 30 bps | 14.5 | % | 14.6 | % | (10 bps) | ||||||||||||||
PENSKE AUTOMOTIVE GROUP, INC.
Retail Automotive Operations
Selected Data
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
Retail Automotive Revenue Mix: |
||||||||||||||||
Premium: |
||||||||||||||||
BMW / MINI |
25 | % | 27 | % | 25 | % | 27 | % | ||||||||
Audi |
14 | % | 13 | % | 14 | % | 13 | % | ||||||||
Mercedes-Benz |
10 | % | 10 | % | 10 | % | 10 | % | ||||||||
Land Rover |
6 | % | 7 | % | 6 | % | 6 | % | ||||||||
Porsche |
6 | % | 5 | % | 6 | % | 5 | % | ||||||||
Lexus |
4 | % | 4 | % | 4 | % | 4 | % | ||||||||
Ferrari / Maserati |
3 | % | 2 | % | 3 | % | 3 | % | ||||||||
Acura |
1 | % | 1 | % | 1 | % | 1 | % | ||||||||
Bentley |
1 | % | 1 | % | 1 | % | 1 | % | ||||||||
Others |
2 | % | 2 | % | 2 | % | 2 | % | ||||||||
Total Premium |
72 | % | 72 | % | 72 | % | 72 | % | ||||||||
Volume Non-U.S.: |
||||||||||||||||
Toyota |
11 | % | 11 | % | 11 | % | 11 | % | ||||||||
Honda |
7 | % | 7 | % | 7 | % | 7 | % | ||||||||
Volkswagen |
3 | % | 3 | % | 3 | % | 3 | % | ||||||||
Nissan |
1 | % | 1 | % | 1 | % | 1 | % | ||||||||
Others |
2 | % | 2 | % | 2 | % | 2 | % | ||||||||
Total Volume Non-U.S. |
24 | % | 24 | % | 24 | % | 24 | % | ||||||||
U.S.: |
||||||||||||||||
General Motors / Chrysler / Ford |
4 | % | 4 | % | 4 | % | 4 | % | ||||||||
Total |
100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Retail Automotive Geographic Revenue Mix: |
||||||||||||||||
U.S. |
63 | % | 61 | % | 59 | % | 61 | % | ||||||||
U.K. |
31 | % | 33 | % | 35 | % | 36 | % | ||||||||
Other International |
6 | % | 6 | % | 6 | % | 3 | % | ||||||||
Total |
100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Retail Automotive Geographic Gross Profit Mix: |
||||||||||||||||
U.S. |
66 | % | 64 | % | 63 | % | 64 | % | ||||||||
U.K. |
28 | % | 31 | % | 31 | % | 33 | % | ||||||||
Other International |
6 | % | 5 | % | 6 | % | 3 | % | ||||||||
Total |
100 | % | 100 | % | 100 | % | 100 | % | ||||||||
PENSKE AUTOMOTIVE GROUP, INC.
Retail Automotive Operations
Same-Store
Selected Data
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
Retail Automotive Same-Store Units: |
||||||||||||||||
New Retail |
59,573 | 59,779 | 229,401 | 227,138 | ||||||||||||
Used Retail |
47,375 | 49,529 | 191,234 | 192,093 | ||||||||||||
Total |
106,948 | 109,308 | 420,635 | 419,231 | ||||||||||||
| Retail Automotive Same-Store Revenue: (Amounts in Millions) |
||||||||||||||||
New Vehicles |
$ | 2,240.2 | $ | 2,316.5 | $ | 8,941.3 | $ | 9,065.5 | ||||||||
Used Vehicles |
1,278.8 | 1,360.6 | 5,267.0 | 5,295.7 | ||||||||||||
Finance and Insurance, Net |
118.4 | 121.8 | 483.8 | 476.3 | ||||||||||||
Service and Parts |
469.1 | 470.2 | 1,830.3 | 1,790.8 | ||||||||||||
Fleet and Wholesale |
233.3 | 268.9 | 959.6 | 945.9 | ||||||||||||
Total Revenue |
$ | 4,339.8 | $ | 4,538.0 | $ | 17,482.0 | $ | 17,574.2 | ||||||||
| Retail Automotive Same-Store Gross Profit: (Amounts in Millions) |
||||||||||||||||
New Vehicles |
$ | 176.7 | $ | 182.3 | $ | 662.9 | $ | 685.9 | ||||||||
Used Vehicles |
70.4 | 70.5 | 310.2 | 325.9 | ||||||||||||
Finance and Insurance, Net |
118.4 | 121.8 | 483.8 | 476.3 | ||||||||||||
Service and Parts |
271.1 | 272.5 | 1,073.9 | 1,068.9 | ||||||||||||
Fleet and Wholesale |
1.8 | 2.9 | 14.4 | 10.4 | ||||||||||||
Total Gross Profit |
$ | 638.4 | $ | 650.0 | $ | 2,545.2 | $ | 2,567.4 | ||||||||
| Retail Automotive Same-Store Revenue Per Vehicle Retailed: |
||||||||||||||||
New Vehicles |
$ | 37,604 | $ | 38,750 | $ | 38,977 | $ | 39,912 | ||||||||
Used Vehicles |
26,992 | 27,470 | 27,542 | 27,568 | ||||||||||||
| Retail Automotive Same-Store Gross Profit Per Vehicle Retailed: |
||||||||||||||||
New Vehicles |
$ | 2,966 | $ | 3,050 | $ | 2,890 | $ | 3,020 | ||||||||
Used Vehicles |
1,486 | 1,424 | 1,622 | 1,696 | ||||||||||||
Finance & Insurance |
1,107 | 1,115 | 1,150 | 1,136 | ||||||||||||
PENSKE AUTOMOTIVE GROUP, INC.
Retail Commercial Truck Operations
Selected Data
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
Retail Commercial Truck Units: |
||||||||||||||||||||
New Retail |
1,302 | 1,622 | 6,079 | 5,864 | ||||||||||||||||
Used Retail |
260 | 233 | 1,031 | 1,113 | ||||||||||||||||
Total |
1,562 | 1,855 | 7,110 | 6,977 | ||||||||||||||||
| Retail Commercial Truck Revenue: (Amounts in Millions) |
||||||||||||||||||||
New Vehicles |
$ | 128.0 | $ | 154.1 | $ | 625.5 | $ | 572.5 | ||||||||||||
Used Vehicles |
13.2 | 12.0 | 51.8 | 58.7 | ||||||||||||||||
Finance and Insurance, Net |
1.8 | 1.7 | 7.3 | 6.7 | ||||||||||||||||
Service and Parts |
73.8 | 70.0 | 306.0 | 286.0 | ||||||||||||||||
Lease, Rental & Wholesale |
1.6 | 3.2 | 10.1 | 20.2 | ||||||||||||||||
Total Revenue |
$ | 218.4 | $ | 241.0 | $ | 1,000.7 | $ | 944.1 | ||||||||||||
| Retail Commercial Truck Gross Profit: (Amounts in Millions) |
||||||||||||||||||||
New Vehicles |
$ | 4.4 | $ | 7.2 | $ | 23.1 | $ | 26.8 | ||||||||||||
Used Vehicles |
(0.4 | ) | 0.6 | (1.7 | ) | 5.4 | ||||||||||||||
Finance and Insurance, Net |
1.8 | 1.7 | 7.3 | 6.7 | ||||||||||||||||
Service and Parts |
27.5 | 26.1 | 113.2 | 105.5 | ||||||||||||||||
Lease, Rental & Wholesale |
(0.1 | ) | 0.3 | 1.0 | 2.6 | |||||||||||||||
Total Gross Profit |
$ | 33.2 | $ | 35.9 | $ | 142.9 | $ | 147.0 | ||||||||||||
| Retail Commercial Truck Revenue Per Vehicle Retailed: |
||||||||||||||||||||
New Vehicles |
$ | 98,292 | $ | 95,020 | $ | 102,892 | $ | 97,629 | ||||||||||||
Used Vehicles |
51,121 | 51,295 | 50,276 | 52,775 | ||||||||||||||||
| Retail Commercial Truck Gross Profit Per Vehicle Retailed: |
||||||||||||||||||||
New Vehicles |
$ | 3,451 | $ | 4,411 | $ | 3,808 | $ | 4,576 | ||||||||||||
Used Vehicles |
(1,463 | ) | 2,398 | (1,626 | ) | 4,810 | ||||||||||||||
Finance & Insurance |
1,124 | 932 | 1,021 | 966 | ||||||||||||||||
PENSKE AUTOMOTIVE GROUP, INC.
Retail Commercial Truck Operations
Same-Store
Selected Data
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
Retail Commercial Truck Same-Store Units: |
||||||||||||||||||||
New Retail |
1,090 | 1,622 | 2,445 | 3,763 | ||||||||||||||||
Used Retail |
238 | 233 | 880 | 1,044 | ||||||||||||||||
Total |
1,328 | 1,855 | 3,325 | 4,807 | ||||||||||||||||
| Retail Commercial Truck Same-Store Revenue: (Amounts in Millions) |
||||||||||||||||||||
New Vehicles |
$ | 104.3 | $ | 154.1 | $ | 274.2 | $ | 397.0 | ||||||||||||
Used Vehicles |
12.4 | 12.0 | 44.4 | 55.4 | ||||||||||||||||
Finance and Insurance, Net |
1.6 | 1.7 | 5.7 | 6.3 | ||||||||||||||||
Service and Parts |
64.6 | 70.0 | 214.7 | 221.2 | ||||||||||||||||
Lease, Rental & Wholesale |
1.4 | 3.2 | 7.6 | 16.7 | ||||||||||||||||
Total Revenue |
$ | 184.3 | $ | 241.0 | $ | 546.6 | $ | 696.6 | ||||||||||||
| Retail Commercial Truck Same-Store Gross Profit: (Amounts in Millions) |
||||||||||||||||||||
New Vehicles |
$ | 4.1 | $ | 7.2 | $ | 12.9 | $ | 21.4 | ||||||||||||
Used Vehicles |
(0.5 | ) | 0.6 | (0.7 | ) | 5.2 | ||||||||||||||
Finance and Insurance, Net |
1.6 | 1.7 | 5.7 | 6.3 | ||||||||||||||||
Service and Parts |
24.6 | 26.1 | 86.4 | 88.0 | ||||||||||||||||
Lease, Rental & Wholesale |
(0.1 | ) | 0.3 | 0.8 | 2.2 | |||||||||||||||
Total Gross Profit |
$ | 29.7 | $ | 35.9 | $ | 105.1 | $ | 123.1 | ||||||||||||
| Retail Commercial Truck Same-Store Revenue Per Vehicle Retailed: |
||||||||||||||||||||
New Vehicles |
$ | 95,711 | $ | 95,020 | $ | 112,163 | $ | 105,515 | ||||||||||||
Used Vehicles |
52,197 | 51,295 | 50,443 | 53,027 | ||||||||||||||||
| Retail Commercial Truck Same-Store Gross Profit Per Vehicle Retailed: |
||||||||||||||||||||
New Vehicles |
$ | 3,775 | $ | 4,411 | $ | 5,268 | $ | 5,672 | ||||||||||||
Used Vehicles |
(1,956 | ) | 2,398 | (829 | ) | 4,975 | ||||||||||||||
Finance & Insurance |
1,171 | 932 | 1,715 | 1,312 | ||||||||||||||||
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 months and twelve months ended December 31, 2016 and 2015:
Income from Continuing Operations:
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||
| (Amounts in Millions) | 2016 | 2015 | Increase/ (Decrease) | 2016 | 2015 | Increase/ (Decrease) | ||||||||||||||||||
Income from Continuing Operations |
$ | 82.5 | $ | 72.7 | 13.5 | % | $ | 343.9 | $ | 329.6 | 4.3 | % | ||||||||||||
Less: Income tax benefit (1) |
(5.1 | ) | — | nm | (5.1 | ) | — | nm | ||||||||||||||||
Adjusted Income from Continuing Operations |
$ | 77.4 | $ | 72.7 | 6.5 | % | $ | 338.8 | $ | 329.6 | 2.8 | % | ||||||||||||
Earnings Per Share:
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||||
| 2016 | 2015 | Increase/ (Decrease) | 2016 | 2015 | Increase/ (Decrease) | |||||||||||||||||||||||
Earnings Per Share from Continuing
Operations |
$ | 0.97 | $ | 0.81 | 19.8 | % | $ | 4.00 | $ | 3.67 | 9.0 | % | ||||||||||||||||
Less: Income tax benefit (1) |
(0.06 | ) | — | nm | (0.06 | ) | — | nm | ||||||||||||||||||||
Adjusted Earnings Per Share from
Continuing Operations |
$ | 0.91 | $ | 0.81 | 12.3 | % | $ | 3.93(2) | $ | 3.67 | 7.1 | % | ||||||||||||||||
| (1) | Represents an income tax benefit from the revaluation of a deferred tax liability on our Premier Truck Group investment. |
| (2) Earnings per share amounts may not sum due to rounding. |
PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Non-GAAP Reconciliations
(Unaudited)
The following table reconciles reported net income to earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the three and twelve months ended December 31, 2016 and 2015:
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||
| Increase/ | Increase/ | |||||||||||||||||||||||||
| 2016 | 2015 | (Decrease) | 2016 | 2015 | (Decrease) | |||||||||||||||||||||
| (Amounts in Millions) | ||||||||||||||||||||||||||
Net Income
|
$ | 82.7 | $ | 71.3 | 16.0 | % | $ | 346.4 | $ | 330.4 | 4.8 | % | ||||||||||||||
Add: Depreciation
|
22.9 | 20.3 | 12.8 | % | 89.7 | 78.0 | 15.0 | % | ||||||||||||||||||
Other Interest Expense
|
23.6 | 20.4 | 15.7 | % | 85.4 | 69.4 | 23.1 | % | ||||||||||||||||||
Income Taxes
|
32.3 | 29.8 | 8.4 | % | 160.7 | 158.0 | 1.7 | % | ||||||||||||||||||
(Income)/Loss from Discontinued Operations, net of tax |
(0.1) |
2.4 |
nm |
1.0 |
3.5 |
(71.4%) |
||||||||||||||||||||
EBITDA
|
$ | 161.4 | $ | 144.2 | 11.9 | % | $ | 683.2 | $ | 639.3 | 6.9 | % | ||||||||||||||
nm – not meaningful