Record Q2 Income from Continuing Operations and Earnings per Share
BLOOMFIELD HILLS, Mich.– Penske Automotive Group, Inc. (NYSE:PAG):
| Second Quarter 2012 | First Half 2012 | |||
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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 2012, income from continuing operations attributable to common shareholders increased 26.4% to $49.5 million and related earnings per share increased 31.0% to $0.55 per share. This compares to income from continuing operations attributable to common shareholders of $39.2 million, or $0.42 per share in the same period last year.
Total revenue increased by 19.2% to $3.4 billion and was driven by an increase in total retail unit sales of 20.9%. The increase in retail unit sales was highlighted by a 24.8% increase in new unit sales and a 16.4% increase in used retail unit sales. Total same-store retail unit sales increased 12.0% in the second quarter. Same-store retail revenue increased 9.4% in the second quarter. Gross profit improved 12.6% to $513.4 million, operating income increased 29.5% to $90.3 million, and operating margin improved by 20 basis points.
Highlights of the Second Quarter
- Total Retail Unit Sales increased 20.9% to 84,346
- +18.3% in the United States; +27.0% Internationally
- New unit retail sales +24.8%
- Used unit retail sales +16.4%
- Same-store Retail Revenue increased 9.4%
- New +13.8%; Used +5.4%; Finance & Insurance +13.4%; Service and Parts +0.6%
- +13.5% in the United States; +2.4% Internationally
- Average Transaction Price Per Unit
- New $36,975; -1.0%
- Used $25,666; -3.1%
- Average Gross Profit Per Unit
- New $2,969; Gross Margin 8.0%; down 50 bps
- Used $1,972; Gross Margin 7.7%; down 60 bps
- Finance & Insurance $980, down $9/unit
Chairman Roger Penske said, “The Company’s second quarter results reflect strong performance across both the U.S. and International markets. We experienced strong unit sales throughout the quarter, particularly through our Toyota, Honda and Lexus dealerships, and we increased our service and parts gross margin by 130 basis points to 58.6%. Further, I was particularly pleased that we were able to drive a 230 basis point improvement in selling, general and administrative expenses as a percent of gross profit.”
For the six months ended June 30, 2012, total revenue increased 18.6% to $6.6 billion. Income from continuing operations attributable to common shareholders increased 32.0% to $99.5 million and related earnings per share increased 34.1% to $1.10 per share. This compares to income from continuing operations attributable to common shareholders of $75.4 million, and related earnings per share of $0.82 per share in the same period last year.
Securities Repurchase Activity
For the six months ended June 30, 2012, the Company acquired 405,631 shares of its common stock for an aggregate purchase price of $9.8 million, or an average price of $24.23 per share. Additionally, during the second quarter of 2012, the Company announced the redemption of $63.3 million in outstanding 3.5% senior subordinated convertible notes. The redemption of these notes was completed on July 16, 2012. No shares of common stock were used in the redemption. The Company currently has remaining authorization from its Board of Directors to repurchase up to $98.3 million of its outstanding common stock or debt. Securities may be acquired from time to time either through open market purchases, negotiated transactions or other means.
Conference Call
Penske Automotive will host a conference call discussing financial results relating to the second quarter of 2012 on July 31, 2012, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (877) 209-9922 [International, please dial (612) 332-0636]. The call will also be simultaneously broadcast over the Internet through the Investors Relations section of the Penske Automotive Group website at www.penskeautomotive.com.
About Penske Automotive
Penske Automotive Group, Inc., headquartered in Bloomfield Hills, Michigan, operates 340 retail automotive franchises, representing 41 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 170 franchises in 17 states and Puerto Rico and 170 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 16,000 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. 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.
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| 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, | |||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||
| Revenues: | ||||||||||||||||||
| New Vehicle | $ | 1,729,167 | $ | 1,399,456 | $ | 3,303,367 | $ | 2,778,015 | ||||||||||
| Used Vehicle | 964,511 | 855,598 | 1,931,147 | 1,643,604 | ||||||||||||||
| Finance and Insurance, Net | 82,682 | 69,004 | 162,486 | 135,349 | ||||||||||||||
| Service and Parts | 368,797 | 339,636 | 737,090 | 679,688 | ||||||||||||||
| Fleet Sales | 62,348 | 34,228 | 139,899 | 65,175 | ||||||||||||||
| Wholesale Vehicle | 164,974 | 132,064 | 331,233 | 266,288 | ||||||||||||||
| Total Revenues | 3,372,479 | 2,829,986 | 6,605,222 | 5,568,119 | ||||||||||||||
| Cost of Sales: | ||||||||||||||||||
| New Vehicle | 1,590,303 | 1,280,297 | 3,032,731 | 2,549,647 | ||||||||||||||
| Used Vehicle | 890,411 | 784,366 | 1,778,942 | 1,507,605 | ||||||||||||||
| Service and Parts | 152,846 | 145,038 | 308,678 | 290,963 | ||||||||||||||
| Fleet | 61,631 | 33,519 | 138,887 | 64,514 | ||||||||||||||
| Wholesale | 163,884 | 130,806 | 327,406 | 261,969 | ||||||||||||||
| Total Cost of Sales | 2,859,075 | 2,374,026 | 5,586,644 | 4,674,698 | ||||||||||||||
| Gross Profit | 513,404 | 455,960 | 1,018,578 | 893,421 | ||||||||||||||
| SG&A Expenses | 409,452 | 374,325 | 806,799 | 728,349 | ||||||||||||||
| Depreciation | 13,651 | 11,926 | 26,976 | 23,705 | ||||||||||||||
| Operating Income | 90,301 | 69,709 | 184,803 | 141,367 | ||||||||||||||
| Floor Plan Interest Expense | (9,971 | ) | (6,921 | ) | (19,620 | ) | (13,780 | ) | ||||||||||
| Other Interest Expense | (11,575 | ) | (10,451 | ) | (23,785 | ) | (21,736 | ) | ||||||||||
| Debt Discount Amortization | 0 | 0 | 0 | (1,718 | ) | |||||||||||||
| Equity in Earnings of Affiliates | 8,168 | 7,882 | 12,578 | 7,904 | ||||||||||||||
| Income from Continuing Operations Before Income Taxes | 76,923 | 60,219 | 153,976 | 112,037 | ||||||||||||||
| Income Taxes | (26,854 | ) | (20,505 | ) | (53,744 | ) | (36,043 | ) | ||||||||||
| Income from Continuing Operations | 50,069 | 39,714 | 100,232 | 75,994 | ||||||||||||||
| Income (Loss) from Discontinued Operations, Net of Tax | (457 | ) | 345 | (3,614 | ) | (1,938 | ) | |||||||||||
| Net Income | 49,612 | 40,059 | 96,618 | 74,056 | ||||||||||||||
| Income Attributable to Non-Controlling Interests | (520 | ) | (499 | ) | (708 | ) | (569 | ) | ||||||||||
| Net Income Attributable to Common Shareholders | $ | 49,092 | $ | 39,560 | $ | 95,910 | $ | 73,487 | ||||||||||
| Income from Continuing Operations Per Share | $ | 0.55 | $ | 0.42 | $ | 1.10 | $ | 0.82 | ||||||||||
| Income Per Share | $ | 0.54 | $ | 0.43 | $ | 1.06 | $ | 0.79 | ||||||||||
| Weighted Average Shares Outstanding | 90,337 | 92,570 | 90,395 | 92,514 | ||||||||||||||
| Amounts Attributable to Common Shareholders: | ||||||||||||||||||
| Reported Income from Continuing Operations | $ | 50,069 | $ | 39,714 | $ | 100,232 | $ | 75,994 | ||||||||||
| Income Attributable to Non-Controlling Interests | (520 | ) | (499 | ) | (708 | ) | (569 | ) | ||||||||||
| Income from Continuing Operations, net of tax | $ | 49,549 | $ | 39,215 | $ | 99,524 | $ | 75,425 | ||||||||||
| Income (Loss) from Discontinued Operations, net of tax | (457 | ) | 345 | (3,614 | ) | (1,938 | ) | |||||||||||
| Net Income | $ | 49,092 | $ | 39,560 | $ | 95,910 | $ | 73,487 | ||||||||||
| PENSKE AUTOMOTIVE GROUP, INC. | ||||||||
| Consolidated Condensed Balance Sheets | ||||||||
| (Amounts In Thousands) | ||||||||
| (Unaudited) | ||||||||
| June 30, | December 31, | |||||||
| 2012 | 2011 | |||||||
| Assets | ||||||||
| Cash and Cash Equivalents | $ | 37,219 | $ | 28,676 | ||||
| Accounts Receivable, Net | 464,424 | 438,769 | ||||||
| Inventories | 1,830,841 | 1,572,568 | ||||||
| Other Current Assets | 91,963 | 80,179 | ||||||
| Assets Held for Sale | 39,059 | 81,122 | ||||||
| Total Current Assets | 2,463,506 | 2,201,314 | ||||||
| Property and Equipment, Net | 925,054 | 856,674 | ||||||
| Intangibles | 1,193,409 | 1,132,181 | ||||||
| Other Long-Term Assets | 310,896 | 312,130 | ||||||
| Total Assets | $ | 4,892,865 | $ | 4,502,299 | ||||
| Liabilities and Equity | ||||||||
| Floor Plan Notes Payable | $ | 1,158,252 | $ | 977,548 | ||||
| Floor Plan Notes Payable – Non-Trade | 724,687 | 691,888 | ||||||
| Accounts Payable | 310,686 | 220,538 | ||||||
| Accrued Expenses | 258,726 | 201,179 | ||||||
| Current Portion Long-Term Debt | 13,139 | 3,414 | ||||||
| Liabilities Held for Sale | 34,149 | 55,820 | ||||||
| Total Current Liabilities | 2,499,639 | 2,150,387 | ||||||
| Long-Term Debt | 793,603 | 846,777 | ||||||
| Other Long-Term Liabilities | 388,378 | 364,722 | ||||||
| Total Liabilities | 3,681,620 | 3,361,886 | ||||||
| Equity | 1,211,245 | 1,140,413 | ||||||
| Total Liabilities and Equity | $ | 4,892,865 | $ | 4,502,299 | ||||
| PENSKE AUTOMOTIVE GROUP, INC. | ||||||||||||||
| Consolidated Condensed Statements of Income | ||||||||||||||
| (Amounts In Thousands, Except Per Share Data) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended | ||||||||||||||
| June 30, | ||||||||||||||
| 2012 | 2011 | % Increase/ (Decrease) |
||||||||||||
| Revenues: | ||||||||||||||
| New Vehicle | $ | 1,729,167 | $ | 1,399,456 | 23.6 | % | ||||||||
| Used Vehicle | 964,511 | 855,598 | 12.7 | % | ||||||||||
| Finance and Insurance, Net | 82,682 | 69,004 | 19.8 | % | ||||||||||
| Service and Parts | 368,797 | 339,636 | 8.6 | % | ||||||||||
| Fleet Sales | 62,348 | 34,228 | 82.2 | % | ||||||||||
| Wholesale Vehicle | 164,974 | 132,064 | 24.9 | % | ||||||||||
| Total Revenues | 3,372,479 | 2,829,986 | 19.2 | % | ||||||||||
| Cost of Sales: | ||||||||||||||
| New Vehicle | 1,590,303 | 1,280,297 | 24.2 | % | ||||||||||
| Used Vehicle | 890,411 | 784,366 | 13.5 | % | ||||||||||
| Service and Parts | 152,846 | 145,038 | 5.4 | % | ||||||||||
| Fleet | 61,631 | 33,519 | 83.9 | % | ||||||||||
| Wholesale | 163,884 | 130,806 | 25.3 | % | ||||||||||
| Total Cost of Sales | 2,859,075 | 2,374,026 | 20.4 | % | ||||||||||
| Gross Profit | 513,404 | 455,960 | 12.6 | % | ||||||||||
| SG&A Expenses | 409,452 | 374,325 | 9.4 | % | ||||||||||
| Depreciation | 13,651 | 11,926 | 14.5 | % | ||||||||||
| Operating Income | 90,301 | 69,709 | 29.5 | % | ||||||||||
| Floor Plan Interest Expense | (9,971 | ) | (6,921 | ) | 44.1 | % | ||||||||
| Other Interest Expense | (11,575 | ) | (10,451 | ) | 10.8 | % | ||||||||
| Equity in Earnings of Affiliates | 8,168 | 7,882 | 3.6 | % | ||||||||||
| Income from Continuing Operations Before Income Taxes | 76,923 | 60,219 | 27.7 | % | ||||||||||
| Income Taxes | (26,854 | ) | (20,505 | ) | 31.0 | % | ||||||||
| Income from Continuing Operations | 50,069 | 39,714 | 26.1 | % | ||||||||||
| Income (Loss) from Discontinued Operations, Net of Tax | (457 | ) | 345 | -232.5 | % | |||||||||
| Net Income | 49,612 | 40,059 | 23.8 | % | ||||||||||
| Income Attributable to Non-Controlling Interests | (520 | ) | (499 | ) | 4.2 | % | ||||||||
| Net Income Attributable to Common Shareholders | $ | 49,092 | $ | 39,560 | 24.1 | % | ||||||||
| Income from Continuing Operations Per Share | $ | 0.55 | $ | 0.42 | 31.0 | % | ||||||||
| Income Per Share | $ | 0.54 | $ | 0.43 | 25.6 | % | ||||||||
| Weighted Average Shares Outstanding | 90,337 | 92,570 | -2.4 | % | ||||||||||
| Amounts Attributable to Common Shareholders: | ||||||||||||||
| Reported Income from Continuing Operations | $ | 50,069 | $ | 39,714 | 26.1 | % | ||||||||
| Income Attributable to Non-Controlling Interests | (520 | ) | (499 | ) | 4.2 | % | ||||||||
| Income from Continuing Operations, net of tax | $ | 49,549 | $ | 39,215 | 26.4 | % | ||||||||
| Income (Loss) from Discontinued Operations, net of tax | (457 | ) | 345 | -232.5 | % | |||||||||
| Net Income | $ | 49,092 | $ | 39,560 | 24.1 | % | ||||||||
| PENSKE AUTOMOTIVE GROUP, INC. | ||||||||||||||
| Selected Data | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended | ||||||||||||||
| June 30, | ||||||||||||||
| 2012 | 2011 | % Increase/ (Decrease) |
||||||||||||
| Total Retail Units: | ||||||||||||||
| New Retail | 46,766 | 37,484 | 24.8 | % | ||||||||||
| Used Retail | 37,580 | 32,290 | 16.4 | % | ||||||||||
| Total Retail | 84,346 | 69,774 | 20.9 | % | ||||||||||
| Fleet | 2,836 | 1,518 | 86.8 | % | ||||||||||
| Wholesale | 17,796 | 14,318 | 24.3 | % | ||||||||||
| Total | 104,978 | 85,610 | 22.6 | % | ||||||||||
| Same-Store Retail Units: | ||||||||||||||
| New Same-Store Retail | 42,876 | 37,303 | 14.9 | % | ||||||||||
| Used Same-Store Retail | 34,943 | 32,201 | 8.5 | % | ||||||||||
| Total Same-Store Retail | 77,819 | 69,504 | 12.0 | % | ||||||||||
| Same-Store Retail Revenue: (Amounts in thousands) | ||||||||||||||
| New Vehicles | $ | 1,586,573 | $ | 1,394,553 | 13.8 | % | ||||||||
| Used Vehicles | 899,469 | 853,785 | 5.4 | % | ||||||||||
| Finance and Insurance, Net | 77,971 | 68,777 | 13.4 | % | ||||||||||
| Service and Parts | 340,744 | 338,729 | 0.6 | % | ||||||||||
| Total Same-Store Retail | $ | 2,904,757 | $ | 2,655,844 | 9.4 | % | ||||||||
| Revenue Mix: | ||||||||||||||
| New Vehicles | 51.3 | % | 49.5 | % | 180 bps | |||||||||
| Used Vehicles | 28.6 | % | 30.2 | % | (160 bps) | |||||||||
| Finance and Insurance, Net | 2.5 | % | 2.4 | % | 10 bps | |||||||||
| Service and Parts | 10.9 | % | 12.0 | % | (110 bps) | |||||||||
| Fleet and Wholesale | 6.7 | % | 5.9 | % | 80 bps | |||||||||
| Average Revenue per Vehicle Retailed: | ||||||||||||||
| New Vehicles | $ | 36,975 | $ | 37,335 | -1.0 | % | ||||||||
| Used Vehicles | 25,666 | 26,497 | -3.1 | % | ||||||||||
| Gross Profit per Vehicle Retailed: | ||||||||||||||
| New Vehicles | $ | 2,969 | $ | 3,179 | -6.6 | % | ||||||||
| Used Vehicles | 1,972 | 2,206 | -10.6 | % | ||||||||||
| Finance and Insurance | 980 | 989 | -0.9 | % | ||||||||||
| Operating items as a percentage of revenue: | ||||||||||||||
| New Vehicle Gross Profit | 8.0 | % | 8.5 | % | (50 bps) | |||||||||
| Used Vehicle Gross Profit | 7.7 | % | 8.3 | % | (60 bps) | |||||||||
| Service and Parts Gross Profit | 58.6 | % | 57.3 | % | 130 bps | |||||||||
| Total Gross Profit | 15.2 | % | 16.1 | % | (90 bps) | |||||||||
| Selling, General and Admin. Expenses | 12.1 | % | 13.2 | % | (110 bps) | |||||||||
| Operating Income | 2.7 | % | 2.5 | % | 20 bps | |||||||||
| Inc. From Cont. Ops. Before Inc. Taxes | 2.3 | % | 2.1 | % | 20 bps | |||||||||
| Operating items as a percentage of total gross profit: | ||||||||||||||
| Selling, General and Administrative Expenses | 79.8 | % | 82.1 | % | (230 bps) | |||||||||
| Operating Income | 17.6 | % | 15.3 | % | 230 bps | |||||||||
| PENSKE AUTOMOTIVE GROUP, INC. | ||||||||||||||||
| Selected Data (Continued) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| June 30, | ||||||||||||||||
| 2012 | 2011 | % Increase/ (Decrease) |
||||||||||||||
| Other (Amounts in Thousands): | ||||||||||||||||
| EBITDA * | $ | 102,149 | $ | 82,596 | 23.7 | % | ||||||||||
| Rent Expense | 44,233 | 42,222 | 4.8 | % | ||||||||||||
| Floorplan Credits | 6,463 | 5,234 | 23.5 | % | ||||||||||||
* 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, | ||||||||||||||
| 2012 | 2011 | % Increase/ (Decrease) |
||||||||||||
| Revenues: | ||||||||||||||
| New Vehicle | $ | 3,303,367 | $ | 2,778,015 | 18.9 | % | ||||||||
| Used Vehicle | 1,931,147 | 1,643,604 | 17.5 | % | ||||||||||
| Finance and Insurance, Net | 162,486 | 135,349 | 20.0 | % | ||||||||||
| Service and Parts | 737,090 | 679,688 | 8.4 | % | ||||||||||
| Fleet Sales | 139,899 | 65,175 | 114.7 | % | ||||||||||
| Wholesale Vehicle | 331,233 | 266,288 | 24.4 | % | ||||||||||
| Total Revenues | 6,605,222 | 5,568,119 | 18.6 | % | ||||||||||
| Cost of Sales: | ||||||||||||||
| New Vehicle | 3,032,731 | 2,549,647 | 18.9 | % | ||||||||||
| Used Vehicle | 1,778,942 | 1,507,605 | 18.0 | % | ||||||||||
| Service and Parts | 308,678 | 290,963 | 6.1 | % | ||||||||||
| Fleet | 138,887 | 64,514 | 115.3 | % | ||||||||||
| Wholesale | 327,406 | 261,969 | 25.0 | % | ||||||||||
| Total Cost of Sales | 5,586,644 | 4,674,698 | 19.5 | % | ||||||||||
| Gross Profit | 1,018,578 | 893,421 | 14.0 | % | ||||||||||
| SG&A Expenses | 806,799 | 728,349 | 10.8 | % | ||||||||||
| Depreciation | 26,976 | 23,705 | 13.8 | % | ||||||||||
| Operating Income | 184,803 | 141,367 | 30.7 | % | ||||||||||
| Floor Plan Interest Expense | (19,620 | ) | (13,780 | ) | 42.4 | % | ||||||||
| Other Interest Expense | (23,785 | ) | (21,736 | ) | 9.4 | % | ||||||||
| Debt Discount Amortization | 0 | (1,718 | ) | -100.0 | % | |||||||||
| Equity in Earnings of Affiliates | 12,578 | 7,904 | 59.1 | % | ||||||||||
| Income from Continuing Operations Before Income Taxes | 153,976 | 112,037 | 37.4 | % | ||||||||||
| Income Taxes | (53,744 | ) | (36,043 | ) | 49.1 | % | ||||||||
| Income from Continuing Operations | 100,232 | 75,994 | 31.9 | % | ||||||||||
| (Loss) from Discontinued Operations, Net of Tax | (3,614 | ) | (1,938 | ) | 86.5 | % | ||||||||
| Net Income | 96,618 | 74,056 | 30.5 | % | ||||||||||
| Income Attributable to Non-Controlling Interests | (708 | ) | (569 | ) | 24.4 | % | ||||||||
| Net Income Attributable to Common Shareholders | $ | 95,910 | $ | 73,487 | 30.5 | % | ||||||||
| Income from Continuing Operations Per Share | $ | 1.10 | $ | 0.82 | 34.1 | % | ||||||||
| Income Per Share | $ | 1.06 | $ | 0.79 | 34.2 | % | ||||||||
| Weighted Average Shares Outstanding | 90,395 | 92,514 | -2.3 | % | ||||||||||
| Amounts Attributable to Common Shareholders: | ||||||||||||||
| Reported Income from Continuing Operations | $ | 100,232 | $ | 75,994 | 31.9 | % | ||||||||
| Income Attributable to Non-Controlling Interests | (708 | ) | (569 | ) | 24.4 | % | ||||||||
| Income from Continuing Operations, net of tax | $ | 99,524 | $ | 75,425 | 32.0 | % | ||||||||
| (Loss) from Discontinued Operations, net of tax | (3,614 | ) | (1,938 | ) | 86.5 | % | ||||||||
| Net Income | $ | 95,910 | $ | 73,487 | 30.5 | % | ||||||||
| PENSKE AUTOMOTIVE GROUP, INC. | ||||||||||||||
| Selected Data | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Six Months Ended | ||||||||||||||
| June 30, | ||||||||||||||
| 2012 | 2011 | % Increase/ (Decrease) |
||||||||||||
| Total Retail Units: | ||||||||||||||
| New Retail | 89,773 | 75,994 | 18.1 | % | ||||||||||
| Used Retail | 75,848 | 62,441 | 21.5 | % | ||||||||||
| Total Retail | 165,621 | 138,435 | 19.6 | % | ||||||||||
| Fleet | 6,311 | 2,998 | 110.5 | % | ||||||||||
| Wholesale | 35,698 | 28,768 | 24.1 | % | ||||||||||
| Total | 207,630 | 170,201 | 22.0 | % | ||||||||||
| Same-Store Retail Units: | ||||||||||||||
| New Same-Store Retail | 81,994 | 75,337 | 8.8 | % | ||||||||||
| Used Same-Store Retail | 70,041 | 61,888 | 13.2 | % | ||||||||||
| Total Same-Store Retail | 152,035 | 137,225 | 10.8 | % | ||||||||||
| Same-Store Retail Revenue: (Amounts in thousands) | ||||||||||||||
| New Vehicles | $ | 3,020,344 | $ | 2,757,110 | 9.5 | % | ||||||||
| Used Vehicles | 1,784,819 | 1,629,700 | 9.5 | % | ||||||||||
| Finance and Insurance, Net | 152,619 | 134,233 | 13.7 | % | ||||||||||
| Service and Parts | 679,194 | 674,526 | 0.7 | % | ||||||||||
| Total Same-Store Retail | $ | 5,636,976 | $ | 5,195,569 | 8.5 | % | ||||||||
| Revenue Mix: | ||||||||||||||
| New Vehicles | 50.0 | % | 49.9 | % | 10 bps | |||||||||
| Used Vehicles | 29.2 | % | 29.5 | % | (30 bps) | |||||||||
| Finance and Insurance, Net | 2.5 | % | 2.4 | % | 10 bps | |||||||||
| Service and Parts | 11.2 | % | 12.2 | % | (100 bps) | |||||||||
| Fleet and Wholesale | 7.1 | % | 6.0 | % | 110 bps | |||||||||
| Average Revenue per Vehicle Retailed: | ||||||||||||||
| New Vehicles | $ | 36,797 | $ | 36,556 | 0.7 | % | ||||||||
| Used Vehicles | 25,461 | 26,322 | -3.3 | % | ||||||||||
| Gross Profit per Vehicle Retailed: | ||||||||||||||
| New Vehicles | $ | 3,015 | $ | 3,005 | 0.3 | % | ||||||||
| Used Vehicles | 2,007 | 2,178 | -7.9 | % | ||||||||||
| Finance and Insurance | 981 | 978 | 0.3 | % | ||||||||||
| Operating items as a percentage of revenue: | ||||||||||||||
| New Vehicle Gross Profit | 8.2 | % | 8.2 | % | — | |||||||||
| Used Vehicle Gross Profit | 7.9 | % | 8.3 | % | (40 bps) | |||||||||
| Service and Parts Gross Profit | 58.1 | % | 57.2 | % | 90 bps | |||||||||
| Total Gross Profit | 15.4 | % | 16.0 | % | (60 bps) | |||||||||
| Selling, General and Admin. Expenses | 12.2 | % | 13.1 | % | (90 bps) | |||||||||
| Operating Income | 2.8 | % | 2.5 | % | 30 bps | |||||||||
| Inc. From Cont. Ops. Before Inc. Taxes | 2.3 | % | 2.0 | % | 30 bps | |||||||||
| Operating items as a percentage of total gross profit: | ||||||||||||||
| Selling, General and Administrative Expenses | 79.2 | % | 81.5 | % | (230 bps) | |||||||||
| Operating Income | 18.1 | % | 15.8 | % | 230 bps | |||||||||
| PENSKE AUTOMOTIVE GROUP, INC. | ||||||||||||||||
| Selected Data (Continued) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Six Months Ended | ||||||||||||||||
| June 30, | ||||||||||||||||
| 2012 | 2011 | % Increase/ (Decrease) |
||||||||||||||
| Other (Amounts in Thousands): | ||||||||||||||||
| EBITDA * | $ | 204,737 | $ | 159,196 | 28.6 | % | ||||||||||
| Rent Expense | 88,220 | 84,254 | 4.7 | % | ||||||||||||
| Floorplan Credits | 11,282 | 10,364 | 8.9 | % | ||||||||||||
* 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, | |||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||
| Brand Revenue Mix: | ||||||||||||||
| Premium: | ||||||||||||||
| BMW | 24 | % | 23 | % | 24 | % | 23 | % | ||||||
| Audi | 12 | % | 12 | % | 12 | % | 12 | % | ||||||
| Mercedes-Benz | 10 | % | 10 | % | 10 | % | 10 | % | ||||||
| Lexus | 4 | % | 4 | % | 4 | % | 4 | % | ||||||
| Land Rover | 4 | % | 4 | % | 4 | % | 5 | % | ||||||
| Porsche | 5 | % | 5 | % | 5 | % | 5 | % | ||||||
| Ferrari / Maserati | 3 | % | 4 | % | 3 | % | 3 | % | ||||||
| Acura | 2 | % | 2 | % | 2 | % | 2 | % | ||||||
| Other | 4 | % | 4 | % | 4 | % | 4 | % | ||||||
| Total Premium | 68 | % | 68 | % | 68 | % | 68 | % | ||||||
| Foreign: | ||||||||||||||
| Toyota | 11 | % | 11 | % | 11 | % | 11 | % | ||||||
| Honda | 11 | % | 11 | % | 11 | % | 12 | % | ||||||
| Nissan | 2 | % | 2 | % | 2 | % | 2 | % | ||||||
| Volkswagen | 2 | % | 2 | % | 2 | % | 1 | % | ||||||
| Other | 2 | % | 2 | % | 2 | % | 2 | % | ||||||
| Total Foreign | 28 | % | 28 | % | 28 | % | 28 | % | ||||||
| Domestic Big 3 | ||||||||||||||
| General Motors / Chrysler / Ford | 4 | % | 4 | % | 4 | % | 4 | % | ||||||
| Revenue Mix: | ||||||||||||||
| U.S. | 63 | % | 63 | % | 62 | % | 62 | % | ||||||
| International | 37 | % | 37 | % | 38 | % | 38 | % | ||||||
| PENSKE AUTOMOTIVE GROUP, INC. | |||||||||||||
| Non-GAAP Reconciliation | |||||||||||||
| (Unaudited) | |||||||||||||
| Reconciliation of 2012 and 2011 net income to EBITDA: | |||||||||||||
| Three Months Ended | |||||||||||||
| June 30, | |||||||||||||
| (Amounts in Thousands) | 2012 | 2011 | % Increase/ (Decrease) |
||||||||||
| Net Income | $ | 49,612 | $ | 40,059 | 23.8 | % | |||||||
| Depreciation | 13,651 | 11,926 | 14.5 | % | |||||||||
| Other Interest Expense | 11,575 | 10,451 | 10.8 | % | |||||||||
| Income Taxes | 26,854 | 20,505 | 31.0 | % | |||||||||
| (Income) Loss from Discontinued Operations, net | 457 | (345 | ) | -232.5 | % | ||||||||
| EBITDA | $ | 102,149 | $ | 82,596 | 23.7 | % | |||||||
| Six Months Ended | |||||||||||||||||||
| June 30, | |||||||||||||||||||
| (Amounts in Thousands) | 2012 | 2011 | % Increase/ (Decrease) |
||||||||||||||||
| Net Income | $ | 96,618 | $ | 74,056 | 30.5 | % | |||||||||||||
| Depreciation | 26,976 | 23,705 | 13.8 | % | |||||||||||||||
| Other Interest Expense | 23,785 | 21,736 | 9.4 | % | |||||||||||||||
| Debt Discount Amortization | 0 | 1,718 | -100.0 | % | |||||||||||||||
| Income Taxes | 53,744 | 36,043 | 49.1 | % | |||||||||||||||
| Loss from Discontinued Operations, net | 3,614 | 1,938 | 86.5 | % | |||||||||||||||
| EBITDA | $ | 204,737 | $ | 159,196 | 28.6 | % | |||||||||||||
Source: Penske Automotive Group, Inc.