Retail Automotive Revenue Increased 3%
Gross Margin of 16.7% Increased 40 Basis
Points Sequentially
Selling, General, & Administrative
Expenses as a Percentage of Gross Profit
Improved Sequentially By 30 Basis Points to
70.7%
Profitability Impacted by Lower Equity
Earnings from PTS and Higher Interest Expense
BLOOMFIELD HILLS, Mich., April 30,
2024 /PRNewswire/ -- Penske Automotive Group, Inc.
(NYSE: PAG), a diversified international transportation services
company and one of the world's premier automotive and commercial
truck retailers, today announced quarterly results for the first
quarter of 2024. For the quarter, revenue increased 1.5% to
$7.4 billion. Net income attributable
to common stockholders was $215.2
million compared to $298.3
million in the prior year period, and related earnings per
share was $3.21 compared to
$4.31 for the same period in 2023.
Foreign currency exchange positively impacted revenue by
$98.1 million, net income
attributable to common stockholders by $1.4
million, and earnings per share by $0.02.
First Quarter 2024 Operating Highlights Compared to First
Quarter 2023
- New and Used Retail Automotive Units Delivered –
increased 4%
- New Vehicle +6%; Used Vehicle +2%
- Retail Automotive Same-Store Revenue – decreased 1%
- New Vehicle -1%; Used Vehicle -1%; Finance & Insurance -2%;
Service & Parts +5%
- Retail Automotive Same-Store Gross Profit – decreased 4%
- New Vehicle -17%; Used Vehicle flat; Finance & Insurance
-2%; Service & Parts +5%
- Retail Commercial Truck Same-Store Revenue – decreased
15%
- New Vehicle -21%; Used Vehicle +23%; Finance & Insurance
flat; Service & Parts -6%
- Retail Commercial Truck Same-Store Gross Profit –
decreased 6%
- New Vehicle flat; Used Vehicle -26%; Finance & Insurance
flat; Service & Parts -5%
First Quarter 2024 Performance
The Company's financial
results for the first quarter of 2024 were driven by a resilient
performance in the retail automotive and retail commercial truck
segments. Income before income taxes, net income, and income per
share, however, were negatively impacted by higher interest costs
of $17.4 million, driven primarily by
an increase in interest rates and higher inventory levels which
increased borrowings under our floorplan arrangements combined with
lower equity earnings from the Company's investment in Penske
Transportation Solutions ("PTS"). Lower equity earnings from PTS
were primarily due to lower commercial rental utilization, lower
consumer rental revenue, higher interest rates and average debt
balances, and lower gains from the sale of revenue earning vehicles
partially offset by improved operating results in full-service
leasing and distribution center management when compared to the
same period in 2023.
Commenting on the Company's financial results, Chair and CEO
Roger Penske said, "Our retail
automotive service and parts revenue grew 9% to a quarterly record
of $746 million. During the quarter,
we experienced a recovery across our used vehicle retail automotive
operations with profitability improving sequentially by
$428 per unit retailed. Further, I
was pleased with our focus on controlling costs as selling,
general, and administrative expenses as a percentage of gross
profit improved by 30 basis points sequentially to 70.7%."
Retail Automotive Dealerships
For the three months
ended March 31, 2024, total new and
used units delivered increased 4% to 126,864, and total retail
automotive revenue increased 3% to $6.5 billion. Same-store new and used units
delivered increased 1% to 122,060, and same-store revenue decreased
1%. Same-store service and parts revenue and gross profit increased
5%. Total retail automotive gross profit decreased 1% to
$1.1 billion, including a 4%
decrease on a same-store basis.
Retail Commercial Truck Dealerships
As of March 31, 2024, Premier Truck Group operated 43
North American retail commercial truck locations. Retail unit sales
declined 12% largely due to the lack of availability of inventory
in the first quarter of 2024 when compared to the same period last
year. For the three months ended March 31,
2024, revenue was $791.8
million compared to $895.6
million in the same period last year while a stronger sales
mix drove a 190 bps increase in gross margin. Earnings before taxes
was $50.5 million compared to
$57.1 million in the same period in
2023.
Penske Transportation Solutions Investment
Penske
Transportation Solutions ("PTS") is a leading provider of
full-service truck leasing, truck rental, contract maintenance, and
logistics services. PTS operates a managed fleet with over 442,000
trucks, tractors, and trailers under lease, rental and/or
maintenance contracts. Penske Automotive Group has a 28.9%
ownership interest in PTS and accounts for its ownership interest
using the equity method of accounting. For the three months ended
March 31, 2024, the Company recorded
$32.5 million in earnings compared to
$80.8 million for the same period in
2023.
Corporate Development, Capital Allocation, Liquidity, and
Leverage
During the three months ended March 31, 2024,
we repurchased 0.2 million shares of common stock for
approximately $32.9 million
under our securities repurchase program. As of March 31, 2024,
$182.6 million remained available
under the Company's existing repurchase authority. As of
March 31, 2024, Penske Automotive had $1.7 billion in liquidity, including $117 million in cash and $1.6 billion of availability under its U.S. and
international credit agreements. The Company's leverage ratio at
March 31, 2024 was 1.1x.
As previously announced, in January
2024, the Company completed the acquisition of Rybrook Group
Limited consisting of 16 retail automotive franchises in the
United Kingdom, including four BMW
franchises, four MINI franchises, four Volvo franchises, two Land
Rover franchises, one Jaguar franchise, and one Porsche franchise.
Three of the BMW locations also retail BMW Motorrad motorcycles.
The acquired dealerships represent estimated annualized revenues of
approximately $1 billion. We also
acquired one Ford dealership and one Chrysler/Dodge/Jeep/Ram
dealership in the U.S. Additionally, in April 2024 we signed an agreement to acquire two
Porsche dealerships and one Ducati motorcycle dealership in
Melbourne, Australia with
estimated annualized revenues of approximately $140 million. This acquisition is expected to be
completed in the second quarter of 2024, subject to customary
conditions.
Conference Call
Penske Automotive Group will host a
conference call discussing financial results relating to the first
quarter of 2024 on Tuesday, April 30, 2024, at
2:00 p.m. Eastern Daylight Time. To listen to
the conference call, participants must dial (877) 692-8955
[International, please dial (234) 720-6979] using access code
7045090. The call will also be simultaneously broadcast over the
Internet, available through the Investors section of the Penske
Automotive Group website. Additionally, an investor presentation
relating to the first quarter 2024 financial results has been
posted to the Investors section of 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 a diversified international
transportation services company and one of the world's premier
automotive and commercial truck retailers. PAG operates dealerships
in the United States, the
United Kingdom, Canada, Germany, Italy, and Japan and is one of the largest retailers of
commercial trucks in North America
for Freightliner. PAG also distributes and retails commercial
vehicles, diesel and gas engines, power systems, and related parts
and services principally in Australia and New
Zealand. PAG employs over 28,500 people worldwide.
Additionally, PAG owns 28.9% of Penske Transportation Solutions
("PTS"), a business that employs over 44,000 people worldwide,
manages one of the largest, most comprehensive and modern trucking
fleets in North America with over
442,000 trucks, tractors, and trailers under lease, rental, and/or
maintenance contracts and provides innovative transportation,
supply chain, and technology solutions to its customers. PAG is a
member of the S&P Mid Cap 400, Fortune 500, Russell 1000,
Russell 3000 indexes, and the S&P Mid Cap 400 Index. For
additional information, including the Company's 2023 Corporate
Responsibility Report highlighting its corporate responsibility
strategies, activities, and certain metrics, 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 earnings before interest, taxes, depreciation, and
amortization ("EBITDA"), adjusted EBITDA, and leverage ratio. 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 financial performance and
future plans. Actual results may vary materially because of risks
and uncertainties that are difficult to predict. These risks and
uncertainties include, among others, our ability to successfully
complete pending acquisitions and satisfy applicable closing
conditions, our ability to successfully integrate acquired
dealerships into our existing operations and obtain certain
contemplated synergies, those related to macro-economic,
geo-political and industry conditions and events, including their
impact on new and used vehicle sales, the availability of consumer
credit, changes in consumer demand, consumer confidence levels,
fuel prices, demand for trucks to move freight with respect to PTS
and PTG, personal discretionary spending levels, interest rates,
and unemployment rates; our ability to obtain vehicles and parts
from our manufacturers, especially in light of supply chain
disruptions due to natural disasters, the shortage of vehicle
components, the war in Ukraine,
challenges in sourcing labor, or labor strikes or work stoppages,
or other disruptions; changes in the retail model either from
direct sales by manufacturers, a transition to an agency model of
sales, sales by online competitors, or from the expansion of
electric vehicles; the effects of a pandemic on the global economy,
including our ability to react effectively to changing business
conditions in light of any pandemic; the rate of inflation,
including its impact on vehicle affordability; changes in interest
rates and foreign currency exchange rates; our ability to
consummate, integrate, and realize returns on acquisitions; with
respect to PTS, changes in the financial health of its customers,
labor strikes or work stoppages by its employees, a reduction in
PTS' asset utilization rates, continued availability from truck
manufacturers and suppliers of vehicles and parts for its fleet,
changes in values of used trucks which affects PTS' profitability
on truck sales and regulatory risks and related compliance costs,
our ability to realize returns on our significant capital
investments in new and upgraded dealership facilities; our ability
to navigate a rapidly changing automotive and truck landscape; our
ability to respond to new or enhanced regulations in both our
domestic and international markets relating to dealerships and
vehicles sales, including those related to the sales process or
emissions standards, as well as changes in consumer sentiment
relating to commercial truck sales that may hinder our or PTS'
ability to maintain, acquire, sell, or operate trucks; the success
of our distribution of commercial vehicles, engines, and power
systems; natural disasters; recall initiatives or other disruptions
that interrupt the supply of vehicles or parts to us; the outcome
of legal and administrative matters, and other factors over which
management has limited control. These forward-looking statements
should be evaluated together with additional information about
Penske Automotive Group's business, markets, conditions, risks, and
other uncertainties, which could affect Penske Automotive Group's
future performance. The risks and uncertainties discussed above are
not exhaustive and additional risk and uncertainties are addressed
in Penske Automotive Group's Form 10-K for the year ended
December 31, 2023, and its other filings with the Securities
and Exchange Commission. This press release speaks only as of its
date, and Penske Automotive Group disclaims any duty to update the
information herein.
Inquiries should contact:
|
Shelley
Hulgrave
|
Anthony
Pordon
|
|
Executive Vice
President and
|
Executive Vice
President Investor Relations
|
|
Chief Financial
Officer
|
and Corporate
Development
|
|
Penske Automotive
Group, Inc.
|
Penske Automotive
Group, Inc.
|
|
248-648-2812
|
248-648-2540
|
|
shulgrave@penskeautomotive.com
|
tpordon@penskeautomotive.com
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
Consolidated Condensed
Statements of Income
(Amounts In
Millions, Except Per Share Data)
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2024
|
|
2023
|
|
Change
|
|
Revenue
|
$
7,447.8
|
|
$
7,339.0
|
|
1.5 %
|
|
Cost of
Sales
|
6,202.6
|
|
6,086.7
|
|
1.9 %
|
|
Gross
Profit
|
$
1,245.2
|
|
$
1,252.3
|
|
(0.6) %
|
|
SG&A
Expenses
|
879.8
|
|
844.9
|
|
4.1 %
|
|
Depreciation
|
37.8
|
|
33.9
|
|
11.5 %
|
|
Operating
Income
|
$ 327.6
|
|
$ 373.5
|
|
(12.3) %
|
|
Floor Plan Interest
Expense
|
(44.8)
|
|
(27.9)
|
|
60.6 %
|
|
Other Interest
Expense
|
(21.3)
|
|
(20.8)
|
|
2.4 %
|
|
Equity in Earnings of
Affiliates
|
33.3
|
|
82.1
|
|
(59.4) %
|
|
Income Before Income
Taxes
|
$ 294.8
|
|
$ 406.9
|
|
(27.5) %
|
|
Income Taxes
|
(78.6)
|
|
(107.3)
|
|
(26.7) %
|
|
Net Income
|
$ 216.2
|
|
$ 299.6
|
|
(27.8) %
|
|
Less: Income
Attributable to Non-Controlling Interests
|
1.0
|
|
1.3
|
|
(23.1) %
|
|
Net Income
Attributable to Common Stockholders
|
$ 215.2
|
|
$ 298.3
|
|
(27.9) %
|
|
|
|
|
|
|
|
Amounts Attributable to
Common Stockholders:
|
|
|
|
|
|
|
Net Income
|
$ 216.2
|
|
$ 299.6
|
|
(27.8) %
|
|
Less: Income
Attributable to Non-Controlling Interests
|
1.0
|
|
1.3
|
|
(23.1) %
|
|
Net Income
Attributable to Common Stockholders
|
$ 215.2
|
|
$ 298.3
|
|
(27.9) %
|
|
Income Per
Share
|
$ 3.21
|
|
$ 4.31
|
|
(25.5) %
|
|
Weighted Average
Shares Outstanding
|
67.1
|
|
69.2
|
|
(3.1) %
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
Consolidated Condensed
Balance Sheets
(Amounts In
Millions)
(Unaudited)
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2024
|
|
2023
|
|
Assets:
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
116.9
|
|
$
96.4
|
|
Accounts Receivable,
Net
|
|
|
1,062.8
|
|
|
1,114.6
|
|
Inventories
|
|
|
4,424.1
|
|
|
4,293.1
|
|
Other Current
Assets
|
|
|
206.8
|
|
|
175.6
|
|
Total Current
Assets
|
|
|
5,810.6
|
|
|
5,679.7
|
|
Property and
Equipment, Net
|
|
|
2,827.8
|
|
|
2,765.2
|
|
Operating Lease
Right-of-Use Assets
|
|
|
2,476.1
|
|
|
2,405.5
|
|
Intangibles
|
|
|
3,152.6
|
|
|
2,983.1
|
|
Other Long-Term
Assets
|
|
|
1,879.4
|
|
|
1,838.0
|
|
Total
Assets
|
|
$
16,146.5
|
|
$
15,671.5
|
|
|
|
|
|
|
|
|
Liabilities and
Equity:
|
|
|
|
|
|
|
|
Floor Plan Notes
Payable
|
|
$
2,376.7
|
|
$
2,255.6
|
|
Floor Plan Notes
Payable – Non-Trade
|
|
|
1,479.2
|
|
|
1,515.9
|
|
Accounts
Payable
|
|
|
962.9
|
|
|
866.9
|
|
Accrued Expenses and
Other Current Liabilities
|
|
|
876.0
|
|
|
809.8
|
|
Current Portion
Long-Term Debt
|
|
|
215.3
|
|
|
209.7
|
|
Total Current
Liabilities
|
|
|
5,910.1
|
|
|
5,657.9
|
|
Long-Term
Debt
|
|
|
1,461.9
|
|
|
1,419.5
|
|
Long-Term Operating
Lease Liabilities
|
|
|
2,407.4
|
|
|
2,336.0
|
|
Other Long-Term
Liabilities
|
|
|
1,521.0
|
|
|
1,502.5
|
|
Total
Liabilities
|
|
|
11,300.4
|
|
|
10,915.9
|
|
Equity
|
|
|
4,846.1
|
|
|
4,755.6
|
|
Total Liabilities and
Equity
|
|
$
16,146.5
|
|
$
15,671.5
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
Consolidated
Operations
Selected
Data
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2024
|
|
2023
|
|
Geographic Revenue
Mix:
|
|
|
|
|
North
America
|
56.5 %
|
|
58.2 %
|
|
U.K.
|
34.2 %
|
|
33.7 %
|
|
Other
International
|
9.3 %
|
|
8.1 %
|
|
Total
|
100.0 %
|
|
100.0 %
|
|
|
|
|
|
Revenue: (Amounts in
Millions)
|
|
|
|
|
Retail
Automotive
|
$
6,478.0
|
|
$
6,299.8
|
|
Retail Commercial
Truck
|
791.8
|
|
895.6
|
|
Commercial Vehicle
Distribution and Other
|
178.0
|
|
143.6
|
|
Total
|
$
7,447.8
|
|
$
7,339.0
|
|
|
|
|
|
Gross Profit: (Amounts
in Millions)
|
|
|
|
|
Retail
Automotive
|
$
1,057.2
|
|
$
1,062.6
|
|
Retail Commercial
Truck
|
144.8
|
|
147.0
|
|
Commercial Vehicle
Distribution and Other
|
43.2
|
|
42.7
|
|
Total
|
$
1,245.2
|
|
$
1,252.3
|
|
|
|
|
|
Gross
Margin:
|
|
|
|
|
Retail
Automotive
|
16.3 %
|
|
16.9 %
|
|
Retail Commercial
Truck
|
18.3 %
|
|
16.4 %
|
|
Commercial Vehicle
Distribution and Other
|
24.3 %
|
|
29.7 %
|
|
Total
|
16.7 %
|
|
17.1 %
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2024
|
|
2023
|
|
Operating Items as a
Percentage of Revenue:
|
|
|
|
|
Gross
Profit
|
16.7 %
|
|
17.1 %
|
|
Selling, General and
Administrative Expenses
|
11.8 %
|
|
11.5 %
|
|
Operating
Income
|
4.4 %
|
|
5.1 %
|
|
Income Before Income
Taxes
|
4.0 %
|
|
5.5 %
|
|
|
|
|
|
Operating Items as a
Percentage of Total Gross Profit:
|
|
|
|
|
Selling, General and
Administrative Expenses
|
70.7 %
|
|
67.5 %
|
|
Operating
Income
|
26.3 %
|
|
29.8 %
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
(Amounts in
Millions)
|
2024
|
|
2023
|
|
|
|
|
|
|
|
EBITDA(1)
|
$ 353.9
|
|
$ 461.6
|
|
Floor Plan
Credits
|
$ 10.9
|
|
$
9.9
|
|
Rent Expense
|
$ 65.3
|
|
$ 61.7
|
|
_______________________
|
|
|
|
|
|
|
(1) See the following Non-GAAP reconciliation
table.
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
Retail Automotive
Operations
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2024
|
|
2023
|
|
Change
|
|
Retail Automotive
Units:
|
|
|
|
|
|
|
|
|
New Retail
|
|
48,667
|
|
|
47,662
|
|
2.1 %
|
|
Used Retail
|
|
69,265
|
|
|
67,836
|
|
2.1 %
|
|
Total
Retail
|
|
117,932
|
|
|
115,498
|
|
2.1 %
|
|
New Agency
|
|
8,932
|
|
|
6,933
|
|
28.8 %
|
|
Total Retail and
Agency
|
|
126,864
|
|
|
122,431
|
|
3.6 %
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Revenue: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
2,802.6
|
|
$
|
2,721.3
|
|
3.0 %
|
|
Used
Vehicles
|
|
2,336.2
|
|
|
2,297.1
|
|
1.7 %
|
|
Finance and Insurance,
Net
|
|
206.0
|
|
|
206.8
|
|
(0.4) %
|
|
Service and
Parts
|
|
746.1
|
|
|
683.0
|
|
9.2 %
|
|
Fleet and
Wholesale
|
|
387.1
|
|
|
391.6
|
|
(1.1) %
|
|
Total
Revenue
|
$
|
6,478.0
|
|
$
|
6,299.8
|
|
2.8 %
|
|
|
|
|
|
|
|
|
|
Retail Automotive Gross
Profit: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
272.4
|
|
$
|
313.8
|
|
(13.2) %
|
|
Used
Vehicles
|
|
129.9
|
|
|
122.6
|
|
6.0 %
|
|
Finance and Insurance,
Net
|
|
206.0
|
|
|
206.8
|
|
(0.4) %
|
|
Service and
Parts
|
|
432.4
|
|
|
398.9
|
|
8.4 %
|
|
Fleet and
Wholesale
|
|
16.5
|
|
|
20.5
|
|
(19.5) %
|
|
Total Gross
Profit
|
$
|
1,057.2
|
|
$
|
1,062.6
|
|
(0.5) %
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Revenue Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
New Vehicles (excluding
agency)
|
$
|
57,176
|
|
$
|
56,822
|
|
0.6 %
|
|
Used
Vehicles
|
|
33,729
|
|
|
33,863
|
|
(0.4) %
|
|
|
|
|
|
|
|
|
|
Retail Automotive Gross
Profit Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
New Vehicles (excluding
agency)
|
$
|
5,229
|
|
$
|
6,315
|
|
(17.2) %
|
|
Used
Vehicles
|
|
1,876
|
|
|
1,808
|
|
3.8 %
|
|
Finance and
Insurance (excluding agency)
|
|
1,719
|
|
|
1,773
|
|
(3.0) %
|
|
Agency
|
|
2,370
|
|
|
2,128
|
|
11.4 %
|
|
|
|
|
|
|
|
|
|
Retail Automotive Gross
Margin:
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
9.7 %
|
|
|
11.5 %
|
|
(180)bps
|
|
Used
Vehicles
|
|
5.6 %
|
|
|
5.3 %
|
|
+30bps
|
|
Service and
Parts
|
|
58.0 %
|
|
|
58.4 %
|
|
(40)bps
|
|
Fleet and
Wholesale
|
|
4.3 %
|
|
|
5.2 %
|
|
(90)bps
|
|
Total Gross
Margin
|
|
16.3 %
|
|
|
16.9 %
|
|
(60)bps
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Revenue Mix Percentages:
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
43.3 %
|
|
|
43.2 %
|
|
+10bps
|
|
Used
Vehicles
|
|
36.1 %
|
|
|
36.5 %
|
|
(40)bps
|
|
Finance and Insurance,
Net
|
|
3.2 %
|
|
|
3.3 %
|
|
(10)bps
|
|
Service and
Parts
|
|
11.5 %
|
|
|
10.8 %
|
|
+70bps
|
|
Fleet and
Wholesale
|
|
5.9 %
|
|
|
6.2 %
|
|
(30)bps
|
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive Gross
Profit Mix Percentages:
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
25.8 %
|
|
|
29.5 %
|
|
(370)bps
|
|
Used
Vehicles
|
|
12.3 %
|
|
|
11.5 %
|
|
+80bps
|
|
Finance and Insurance,
Net
|
|
19.5 %
|
|
|
19.5 %
|
|
—bps
|
|
Service and
Parts
|
|
40.9 %
|
|
|
37.5 %
|
|
+340bps
|
|
Fleet and
Wholesale
|
|
1.5 %
|
|
|
2.0 %
|
|
(50)bps
|
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
nm – not
meaningful
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
Retail Automotive
Operations Same-Store
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2024
|
|
2023
|
|
Change
|
|
Retail Automotive
Same-Store Units:
|
|
|
|
|
|
|
|
|
New Retail
|
|
46,807
|
|
|
47,566
|
|
(1.6) %
|
|
Used Retail
|
|
66,725
|
|
|
66,578
|
|
0.2 %
|
|
Total
Retail
|
|
113,532
|
|
|
114,144
|
|
(0.5) %
|
|
New Agency
|
|
8,528
|
|
|
6,893
|
|
23.7 %
|
|
Total Retail and
Agency
|
|
122,060
|
|
|
121,037
|
|
0.8 %
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Revenue: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
2,688.7
|
|
$
|
2,718.9
|
|
(1.1) %
|
|
Used
Vehicles
|
|
2,237.8
|
|
|
2,269.6
|
|
(1.4) %
|
|
Finance and Insurance,
Net
|
|
201.6
|
|
|
205.8
|
|
(2.0) %
|
|
Service and
Parts
|
|
713.7
|
|
|
680.5
|
|
4.9 %
|
|
Fleet and
Wholesale
|
|
375.8
|
|
|
386.8
|
|
(2.8) %
|
|
Total
Revenue
|
$
|
6,217.6
|
|
$
|
6,261.6
|
|
(0.7) %
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Gross Profit: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
261.0
|
|
$
|
313.7
|
|
(16.8) %
|
|
Used
Vehicles
|
|
122.3
|
|
|
122.1
|
|
0.2 %
|
|
Finance and Insurance,
Net
|
|
201.6
|
|
|
205.8
|
|
(2.0) %
|
|
Service and
Parts
|
|
417.5
|
|
|
397.2
|
|
5.1 %
|
|
Fleet and
Wholesale
|
|
16.2
|
|
|
20.5
|
|
(21.0) %
|
|
Total Gross
Profit
|
$
|
1,018.6
|
|
$
|
1,059.3
|
|
(3.8) %
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Revenue Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
New Vehicles (excluding
agency)
|
$
|
57,015
|
|
$
|
56,887
|
|
0.2 %
|
|
Used
Vehicles
|
|
33,538
|
|
|
34,089
|
|
(1.6) %
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Gross Profit Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
New Vehicles (excluding
agency)
|
$
|
5,195
|
|
$
|
6,326
|
|
(17.9) %
|
|
Used
Vehicles
|
|
1,833
|
|
|
1,834
|
|
(0.1) %
|
|
Finance and
Insurance (excluding agency)
|
|
1,756
|
|
|
1,790
|
|
(1.9) %
|
|
Agency
|
|
2,357
|
|
|
2,067
|
|
14.0 %
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Gross Margin:
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
9.7 %
|
|
|
11.5 %
|
|
(180)bps
|
|
Used
Vehicles
|
|
5.5 %
|
|
|
5.4 %
|
|
+10bps
|
|
Service and
Parts
|
|
58.5 %
|
|
|
58.4 %
|
|
+10bps
|
|
Fleet and
Wholesale
|
|
4.3 %
|
|
|
5.3 %
|
|
(100)bps
|
|
Total Gross
Margin
|
|
16.4 %
|
|
|
16.9 %
|
|
(50)bps
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Revenue Mix Percentages:
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
43.2 %
|
|
|
43.4 %
|
|
(20)bps
|
|
Used
Vehicles
|
|
36.0 %
|
|
|
36.2 %
|
|
(20)bps
|
|
Finance and Insurance,
Net
|
|
3.2 %
|
|
|
3.3 %
|
|
(10)bps
|
|
Service and
Parts
|
|
11.5 %
|
|
|
10.9 %
|
|
+60bps
|
|
Fleet and
Wholesale
|
|
6.1 %
|
|
|
6.2 %
|
|
(10)bps
|
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
Retail Automotive
Same-Store Gross Profit Mix Percentages:
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
25.6 %
|
|
|
29.6 %
|
|
(400)bps
|
|
Used
Vehicles
|
|
12.0 %
|
|
|
11.5 %
|
|
+50bps
|
|
Finance and Insurance,
Net
|
|
19.8 %
|
|
|
19.4 %
|
|
+40bps
|
|
Service and
Parts
|
|
41.0 %
|
|
|
37.5 %
|
|
+350bps
|
|
Fleet and
Wholesale
|
|
1.6 %
|
|
|
2.0 %
|
|
(40)bps
|
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
nm – not
meaningful
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
Retail Commercial Truck
Operations
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2024
|
|
2023
|
|
Change
|
|
Retail Commercial Truck
Units:
|
|
|
|
|
|
|
|
|
New Retail
|
|
3,491
|
|
|
4,517
|
|
(22.7) %
|
|
Used Retail
|
|
1,049
|
|
|
655
|
|
60.2 %
|
|
Total
|
|
4,540
|
|
|
5,172
|
|
(12.2) %
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Revenue: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
494.2
|
|
$
|
600.2
|
|
(17.7) %
|
|
Used
Vehicles
|
|
62.4
|
|
|
49.5
|
|
26.1 %
|
|
Finance and Insurance,
Net
|
|
5.3
|
|
|
5.0
|
|
6.0 %
|
|
Service and
Parts
|
|
223.6
|
|
|
228.0
|
|
(1.9) %
|
|
Wholesale and
Other
|
|
6.3
|
|
|
12.9
|
|
(51.2) %
|
|
Total
Revenue
|
$
|
791.8
|
|
$
|
895.6
|
|
(11.6) %
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Gross Profit: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
34.6
|
|
$
|
32.5
|
|
6.5 %
|
|
Used
Vehicles
|
|
3.3
|
|
|
5.4
|
|
(38.9) %
|
|
Finance and Insurance,
Net
|
|
5.3
|
|
|
5.0
|
|
6.0 %
|
|
Service and
Parts
|
|
98.1
|
|
|
98.3
|
|
(0.2) %
|
|
Wholesale and
Other
|
|
3.5
|
|
|
5.8
|
|
(39.7) %
|
|
Total Gross
Profit
|
$
|
144.8
|
|
$
|
147.0
|
|
(1.5) %
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Revenue Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
141,564
|
|
$
|
132,884
|
|
6.5 %
|
|
Used
Vehicles
|
|
59,517
|
|
|
75,640
|
|
(21.3) %
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Gross Profit Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
9,909
|
|
$
|
7,190
|
|
37.8 %
|
|
Used
Vehicles
|
|
3,187
|
|
|
8,195
|
|
(61.1) %
|
|
Finance and
Insurance
|
|
1,167
|
|
|
961
|
|
21.4 %
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Gross Margin:
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
7.0 %
|
|
|
5.4 %
|
|
+160bps
|
|
Used
Vehicles
|
|
5.3 %
|
|
|
10.9 %
|
|
(560)bps
|
|
Service and
Parts
|
|
43.9 %
|
|
|
43.1 %
|
|
+80bps
|
|
Wholesale and
Other
|
|
55.6 %
|
|
|
45.0 %
|
|
+1,060bps
|
|
Total Gross
Margin
|
|
18.3 %
|
|
|
16.4 %
|
|
+190bps
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Revenue Mix Percentages:
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
62.4 %
|
|
|
67.0 %
|
|
(460)bps
|
|
Used
Vehicles
|
|
7.9 %
|
|
|
5.5 %
|
|
+240bps
|
|
Finance and Insurance,
Net
|
|
0.7 %
|
|
|
0.6 %
|
|
+10bps
|
|
Service and
Parts
|
|
28.2 %
|
|
|
25.5 %
|
|
+270bps
|
|
Wholesale and
Other
|
|
0.8 %
|
|
|
1.4 %
|
|
(60)bps
|
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Gross Profit Mix Percentages:
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
23.9 %
|
|
|
22.1 %
|
|
+180bps
|
|
Used
Vehicles
|
|
2.3 %
|
|
|
3.7 %
|
|
(140)bps
|
|
Finance and Insurance,
Net
|
|
3.7 %
|
|
|
3.4 %
|
|
+30bps
|
|
Service and
Parts
|
|
67.7 %
|
|
|
66.9 %
|
|
+80bps
|
|
Wholesale and
Other
|
|
2.4 %
|
|
|
3.9 %
|
|
(150)bps
|
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
Retail Commercial Truck
Operations Same-Store
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2024
|
|
2023
|
|
Change
|
|
Retail Commercial Truck
Same-Store Units:
|
|
|
|
|
|
|
|
|
New Retail
|
|
3,362
|
|
|
4,517
|
|
(25.6) %
|
|
Used Retail
|
|
1,024
|
|
|
655
|
|
56.3 %
|
|
Total
|
|
4,386
|
|
|
5,172
|
|
(15.2) %
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Revenue: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
474.4
|
|
$
|
600.2
|
|
(21.0) %
|
|
Used
Vehicles
|
|
61.1
|
|
|
49.5
|
|
23.4 %
|
|
Finance and Insurance,
Net
|
|
5.0
|
|
|
5.0
|
|
— %
|
|
Service and
Parts
|
|
213.2
|
|
|
228.0
|
|
(6.5) %
|
|
Wholesale and
Other
|
|
6.0
|
|
|
12.9
|
|
(53.5) %
|
|
Total
Revenue
|
$
|
759.7
|
|
$
|
895.6
|
|
(15.2) %
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Gross Profit: (Amounts in Millions)
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
32.4
|
|
$
|
32.5
|
|
(0.3) %
|
|
Used
Vehicles
|
|
4.0
|
|
|
5.4
|
|
(25.9) %
|
|
Finance and Insurance,
Net
|
|
5.0
|
|
|
5.0
|
|
— %
|
|
Service and
Parts
|
|
93.8
|
|
|
98.3
|
|
(4.6) %
|
|
Wholesale and
Other
|
|
3.2
|
|
|
5.5
|
|
(41.8) %
|
|
Total Gross
Profit
|
$
|
138.4
|
|
$
|
146.7
|
|
(5.7) %
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Revenue Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
141,092
|
|
$
|
132,884
|
|
6.2 %
|
|
Used
Vehicles
|
|
59,684
|
|
|
75,640
|
|
(21.1) %
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Gross Profit Per Vehicle Retailed:
|
|
|
|
|
|
|
|
|
New Vehicles
|
$
|
9,651
|
|
$
|
7,190
|
|
34.2 %
|
|
Used
Vehicles
|
|
3,884
|
|
|
8,195
|
|
(52.6) %
|
|
Finance and
Insurance
|
|
1,134
|
|
|
961
|
|
18.0 %
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Gross Margin:
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
6.8 %
|
|
|
5.4 %
|
|
+140bps
|
|
Used
Vehicles
|
|
6.5 %
|
|
|
10.9 %
|
|
(440)bps
|
|
Service and
Parts
|
|
44.0 %
|
|
|
43.1 %
|
|
+90bps
|
|
Wholesale and
Other
|
|
53.3 %
|
|
|
42.6 %
|
|
+1,070bps
|
|
Total Gross
Margin
|
|
18.2 %
|
|
|
16.4 %
|
|
+180bps
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Revenue Mix Percentages:
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
62.4 %
|
|
|
67.0 %
|
|
(460)bps
|
|
Used
Vehicles
|
|
8.0 %
|
|
|
5.5 %
|
|
+250bps
|
|
Finance and Insurance,
Net
|
|
0.7 %
|
|
|
0.6 %
|
|
+10bps
|
|
Service and
Parts
|
|
28.1 %
|
|
|
25.5 %
|
|
+260bps
|
|
Wholesale and
Other
|
|
0.8 %
|
|
|
1.4 %
|
|
(60)bps
|
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
Retail Commercial Truck
Same-Store Gross Profit Mix Percentages:
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
23.4 %
|
|
|
22.2 %
|
|
+120bps
|
|
Used
Vehicles
|
|
2.9 %
|
|
|
3.7 %
|
|
(80)bps
|
|
Finance and Insurance,
Net
|
|
3.6 %
|
|
|
3.4 %
|
|
+20bps
|
|
Service and
Parts
|
|
67.8 %
|
|
|
67.0 %
|
|
+80bps
|
|
Wholesale and
Other
|
|
2.3 %
|
|
|
3.7 %
|
|
(140)bps
|
|
Total
|
|
100.0 %
|
|
|
100.0 %
|
|
|
|
PENSKE AUTOMOTIVE
GROUP, INC.
Supplemental
Data
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2024
|
|
2023
|
|
Retail Automotive
Revenue Mix:
|
|
|
|
|
Premium:
|
|
|
|
|
BMW / MINI
|
26 %
|
|
25 %
|
|
Audi
|
10 %
|
|
11 %
|
|
Mercedes-Benz
|
9 %
|
|
10 %
|
|
Land Rover /
Jaguar
|
8 %
|
|
9 %
|
|
Porsche
|
8 %
|
|
8 %
|
|
Ferrari /
Maserati
|
3 %
|
|
3 %
|
|
Lexus
|
3 %
|
|
3 %
|
|
Acura
|
1 %
|
|
1 %
|
|
Bentley
|
1 %
|
|
1 %
|
|
Others
|
3 %
|
|
1 %
|
|
Total
Premium
|
72 %
|
|
72 %
|
|
Volume
Non-U.S.:
|
|
|
|
|
Toyota
|
10 %
|
|
9 %
|
|
Honda
|
5 %
|
|
5 %
|
|
Volkswagen
|
2 %
|
|
2 %
|
|
Hyundai
|
1 %
|
|
1 %
|
|
Others
|
2 %
|
|
2 %
|
|
Total Volume
Non-U.S.
|
20 %
|
|
19 %
|
|
U.S.:
|
|
|
|
|
General Motors /
Stellantis / Ford
|
1 %
|
|
1 %
|
|
CarShop Used
Vehicle Centers
|
7 %
|
|
8 %
|
|
Total
|
100 %
|
|
100 %
|
|
Three Months
Ended
|
|
March
31,
|
|
Capital Expenditures
/ Stock Repurchases:
|
2024
|
|
2023
|
|
(Amounts in
Millions)
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
|
102.5
|
|
$
|
|
102.4
|
|
Cash paid for
acquisitions, net of cash acquired
|
$
|
|
243.6
|
|
$
|
|
—
|
|
Stock
repurchases:
|
|
|
|
|
|
|
|
|
Aggregate purchase
price
|
$
|
|
32.9
|
|
$
|
|
110.2
|
|
Shares
repurchased
|
|
|
0.2
|
|
|
|
0.9
|
|
Balance Sheet and
Other Highlights:
|
March 31,
2024
|
|
December 31,
2023
|
|
(Amounts in
Millions)
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
$
|
116.9
|
|
$
|
96.4
|
|
Inventories
|
$
|
4,424.1
|
|
$
|
4,293.1
|
|
Total Floor Plan Notes
Payable
|
$
|
3,855.9
|
|
$
|
3,771.5
|
|
Total Long-Term
Debt
|
$
|
1,677.2
|
|
$
|
1,629.2
|
|
Equity
|
$
|
4,846.1
|
|
$
|
4,755.6
|
|
|
|
|
|
|
|
Debt to Total
Capitalization Ratio
|
|
25.7 %
|
|
|
25.5 %
|
|
Leverage Ratio
(1)
|
|
1.1x
|
|
|
1.0x
|
|
New vehicle days'
supply
|
|
40 days
|
|
|
39 days
|
|
Used vehicle days'
supply
|
|
36 days
|
|
|
48 days
|
|
__________________________
|
|
(1) See the following Non-GAAP reconciliation
table
|
|
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 months ended March 31, 2024 and 2023:
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
March
31,
|
|
2024 vs.
2023
|
|
(Amounts in Millions)
|
2024
|
|
2023
|
|
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
$
|
216.2
|
|
$
|
299.6
|
|
$
|
(83.4)
|
|
(27.8) %
|
|
Add:
Depreciation
|
|
37.8
|
|
|
33.9
|
|
|
3.9
|
|
11.5 %
|
|
Other Interest
Expense
|
|
21.3
|
|
|
20.8
|
|
|
0.5
|
|
2.4 %
|
|
Income
Taxes
|
|
78.6
|
|
|
107.3
|
|
|
(28.7)
|
|
(26.7) %
|
|
EBITDA
|
$
|
353.9
|
|
$
|
461.6
|
|
$
|
(107.7)
|
|
(23.3) %
|
The following table reconciles the leverage ratio as of
March 31, 2024, and December 31, 2023:
|
Nine
|
|
Three
|
|
Trailing
Twelve
|
|
Twelve
|
|
Months
Ended
|
|
Months
Ended
|
|
Months
Ended
|
|
Months
Ended
|
|
(Amounts in Millions)
|
December 31,
2023
|
|
March 31,
2024
|
|
March 31,
2024
|
|
December 31,
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
$
759.0
|
|
$
216.2
|
|
$
975.2
|
|
$
1,058.6
|
|
Add:
Depreciation
|
|
107.1
|
|
|
37.8
|
|
|
144.9
|
|
|
141.0
|
|
Other Interest
Expense
|
|
71.8
|
|
|
21.3
|
|
|
93.1
|
|
|
92.6
|
|
Income
Taxes
|
|
253.6
|
|
|
78.6
|
|
|
332.2
|
|
|
360.9
|
|
EBITDA
|
$
1,191.5
|
|
$
353.9
|
|
$
1,545.4
|
|
$
1,653.1
|
|
Add: Impairment
Charges (1)
|
|
40.7
|
|
|
—
|
|
|
40.7
|
|
|
40.7
|
|
Adjusted
EBITDA
|
$
1,232.2
|
|
$
353.9
|
|
$
1,586.1
|
|
$
1,693.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-Vehicle
Long-Term Debt
|
|
|
|
|
|
|
$
1,677.2
|
|
$
1,629.2
|
|
Leverage
Ratio
|
|
|
|
|
|
|
|
1.1x
|
|
|
1.0x
|
|
__________________________
|
|
(1) Impairment charges relate to our Used Vehicle
Dealerships International reporting unit
|
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SOURCE Penske Automotive Group, Inc.
