PENSKE AUTOMOTIVE GROUP, INC. BLOOMFIELD HILLS, Mich., April 28, 2015 /PRNewswire/ --
Revenue Increases 11.4% to $4.5 Billion
Same-store Retail Revenue Increases 4.6%
Income from Continuing Operations Increases
13.7% to $76.4 Million
EBITDA Increases
15.3% to $150.8 Million
---------------------------------------------
Penske Automotive Group, Inc. (NYSE: PAG), an international transportation services company, announced today that first quarter 2015 income from continuing operations increased 13.7% to $76.4 million, and related earnings per share increased 14.9% to $0.85 when compared to the same period last year. Total revenue increased 11.4% to $4.5 billion. Reported revenue and earnings per share from continuing operations were negatively impacted by approximately $185 million and $0.05 per share, respectively, from the strengthening of the U.S. dollar during the first quarter.
The revenue increase was driven by a 6.7% increase in total retail unit sales, including a 5.2% increase on a same-store basis. Gross profit improved 12.2% to $688.7 million, while operating income increased 12.3% to $135.6 million. "I am very pleased with the performance of our overall business in the first quarter," said Penske Automotive Group Chairman Roger S. Penske. "Our retail automotive and U.S.-based commercial truck businesses continue to perform very well as our business posted record first quarter unit sales, revenue, income from continuing operations, and earnings per share performance. We look for the strength in these parts of our business to continue. However, in addition to the impact from exchange rates in the quarter, the challenging economic conditions faced by our Australian commercial vehicle distribution business resulted in a year-over-year decline of approximately $0.04 in earnings per share as the Australian heavy-duty truck market declined 14.3% in the first quarter of 2015."
Automotive Retail Highlights of the First Quarter
-- Total Retail Unit Sales Increased 6.7% to 101,350
-- +4.2% in the United States; +11.4% Internationally
-- New unit retail sales +6.6%
-- Used unit retail sales +6.7%
-- Same-store Retail Revenue Increased 4.6%
-- New +4.1%; Used +5.5%; Finance & Insurance +5.2%; Service and Parts
+3.6%
-- +5.3% in the United States; +3.5% Internationally
-- Excluding foreign exchange, same-store retail revenue increased 8.8%
-- Average Transaction Price Per Unit
-- New $40,086; -0.7%
-- Used $26,554; Flat
-- Average Gross Profit Per Unit
-- New $3,146, +$19/unit; Gross Margin 7.8%, Flat
-- Used $1,758, -$164/unit; Gross Margin 6.6%, -60 basis points
-- Finance & Insurance $1,096, -$3/unit
Acquisitions
During the three months ended March 31, 2015, the company acquired two commercial truck dealerships, Freightliner of Knoxville and Freightliner of Chattanooga, which are expected to contribute estimated annualized revenues of approximately $200 million. Additionally, the company acquired a Land Rover retail automotive dealership located in Darien, Connecticut, with estimated annualized revenues of approximately $50 million.
Share Repurchases
During the three months ended March 31, 2015 the company repurchased 283,000 shares of common stock for approximately $14.0 million, or $49.25 per share. As of March 31, 2015, the company has a remaining share repurchase authorization of $136.0 million.
Conference Call
Penske Automotive will host a conference call discussing financial results relating to the first quarter of 2015 on April 28, 2015, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (800) 288-8975 [International, please dial (612) 332-0802]. 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 first quarter 2015 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 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 22,000 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 earnings before interest, taxes, depreciation and amortization ("EBITDA"). The company has reconciled these measures to the most directly comparable GAAP measures in the release. The company believes that these widely accepted measures of operating profitability improve the transparency of the company's disclosures and provide a meaningful presentation of the company's results from its core business operations excluding the impact of items not related to the company's ongoing core business operations, and improve the period-to-period comparability of the company's results from its core business operations. These non-GAAP financial measures are not substitutes for GAAP financial results, and should only be considered in conjunction with the company's financial information that is presented in accordance with GAAP.
Caution Concerning Forward Looking Statements
Statements in this press release may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.'s future sales potential. 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, 2014, 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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Inquiries should contact:
David K. Jones Anthony R. Pordon
Executive Vice President and Executive Vice President Investor Relations
and Corporate Development
Chief Financial Officer
Penske Automotive Group, Inc.
Penske Automotive Group, Inc. 248-648-2540
248-648-2800 tpordon@penskeautomotive.com
dave.jones@penskeautomotive.com
PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Condensed Statements of Income
(Amounts In Millions, Except Per Share Data)
(Unaudited)
Three Months Ended
March 31,
---------
2015 2014 Increase/
(Decrease)
----------
Revenue $4,471.1 $4,015.2 11.4%
Cost of Sales 3,782.4 3,401.2 11.2%
------- ------- ----
Gross Profit $688.7 $614.0 12.2%
SG&A Expenses 534.5 477.2 12.0%
Depreciation 18.6 16.1 15.5%
---- ---- ----
Operating Income $135.6 $120.7 12.3%
Floor Plan Interest Expense (10.1) (11.1) -9.0%
Other Interest Expense (16.3) (12.4) 31.5%
Equity in Earnings of
Affiliates 6.7 5.1 31.4%
--- --- ----
Income from Continuing
Operations Before Income
Taxes $115.9 $102.3 13.3%
Income Taxes (38.8) (34.7) 11.8%
----- ----- ----
Income from Continuing
Operations $77.1 $67.6 14.1%
(Loss)/Income from
Discontinued Operations,
net of tax (1.2) 0.3 nm
---- --- ---
Net Income $75.9 $67.9 11.8%
Less: Income Attributable to
Non-Controlling Interests 0.7 0.4 75.0%
--- --- ----
Net Income Attributable to
Common Shareholders $75.2 $67.5 11.4%
===== ===== ====
Income from Continuing
Operations Per Share $0.85 $0.74 14.9%
===== ===== ====
Income Per Share $0.83 $0.75 10.7%
===== ===== ====
Weighted Average Shares
Outstanding 90.3 90.5 -0.2%
==== ==== ====
Amounts Attributable to Common Shareholders:
Reported Income from
Continuing Operations $77.1 $67.6 14.1%
Less: Income Attributable to
Non-Controlling Interests 0.7 0.4 75.0%
--- --- ----
Income from Continuing
Operations, net of tax $76.4 $67.2 13.7%
(Loss)/Income from
Discontinued Operations,
net of tax (1.2) 0.3 nm
---- --- ---
Net Income Attributable to
Common Shareholders $75.2 $67.5 11.4%
===== ===== ====
nm - not meaningful
PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Condensed Balance Sheets
(Amounts In Millions)
(Unaudited)
March 31, December 31,
2015 2014
---- ----
Assets:
Cash and
Cash
Equivalents $66.8 $36.3
Accounts
Receivable,
Net 746.4 701.4
Inventories 2,885.7 2,819.2
Other
Current
Assets 106.7 124.7
Assets Held
for Sale 62.2 186.1
---- -----
Total
Current
Assets 3,867.8 3,867.7
Property and
Equipment,
Net 1,326.6 1,328.8
Intangibles 1,657.7 1,652.5
Other Long-
Term Assets 375.5 379.2
----- -----
Total Assets $7,227.6 $7,228.2
======== ========
Liabilities and Equity:
Floor Plan
Notes
Payable $1,915.8 $1,812.6
Floor Plan
Notes
Payable -
Non-Trade 1,021.5 920.5
Accounts
Payable 454.1 417.6
Accrued
Expenses 342.9 310.3
Current
Portion
Long-Term
Debt 34.5 36.6
Liabilities
Held for
Sale 43.3 132.7
---- -----
Total
Current
Liabilities 3,812.1 3,630.3
Long-Term
Debt 1,174.1 1,316.0
Other Long-
Term
Liabilities 570.0 600.7
----- -----
Total
Liabilities 5,556.2 5,547.0
Equity 1,671.4 1,681.2
------- -------
Total
Liabilities
and Equity $7,227.6 $7,228.2
======== ========
PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Operations
Selected Data
(Unaudited)
Three Months Ended
March 31,
---------
2015 2014
---- ----
Geographic Revenue Mix:
U.S. 60% 58%
U.K. 36% 38%
Other International 4% 4%
--- ---
Total 100.0% 100.0%
===== =====
Revenue: (Amounts in Millions)
Retail Automotive $4,175.0 $3,919.2
U.S. Commercial Trucks 192.7 --
Commercial Vehicles Australia/Power
Systems and Other 103.4 96.0
Total $4,471.1 $4,015.2
======== ========
Gross Profit: (Amounts in Millions)
Retail Automotive $628.1 $597.7
U.S. Commercial Trucks 32.8 --
Commercial Vehicles Australia/Power
Systems and Other 27.8 16.3
Total $688.7 $614.0
====== ======
Gross Margin:
Retail Automotive 15.0% 15.3%
U.S. Commercial Trucks 17.0% --
Commercial Vehicles Australia/Power
Systems and Other 26.9% 17.0%
Total 15.4% 15.3%
==== ====
PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Operations
Selected Data
(Unaudited)
Three Months Ended
March 31,
---------
2015 2014 Increase/
(Decrease)
----------
Operating Items as a Percentage of Revenue:
Gross Profit 15.4% 15.3% 10 bps
Selling, General and
Administrative Expenses 12.0% 11.9% 10 bps
Operating Income 3.0% 3.0% --
Inc. From Cont. Ops.
Before Inc. Taxes 2.6% 2.5% 10 bps
Operating Items as a Percentage of Total Gross Profit:
Selling, General and
Administrative Expenses 77.6% 77.7% -10 bps
Operating Income 19.7% 19.7% --
Three Months Ended
March 31,
---------
2015 2014 Increase/
(Decrease)
----------
(Amounts in Millions)
EBITDA* $150.8 $130.8 15.3%
Rent Expense $49.9 $46.1 8.2%
Floorplan Credits $6.7 $6.1 9.8%
* See the following Non-GAAP reconciliation table.
PENSKE AUTOMOTIVE GROUP, INC.
Retail Automotive Operations
Selected Data
(Unaudited)
Three Months Ended
March 31,
---------
2015 2014 Increase/
(Decrease)
----------
Retail Automotive Units:
New Retail 53,293 49,994 6.6%
Used Retail 48,057 45,028 6.7%
------ ------ ---
Total Retail Units 101,350 95,022 6.7%
======= ====== ===
Retail Automotive Revenue: (Amounts in Millions)
New Vehicles $2,136.3 $2,017.3 5.9%
Used Vehicles 1,276.1 1,195.2 6.8%
Finance and
Insurance, Net 111.1 104.5 6.3%
Service and Parts 437.3 415.4 5.3%
Fleet and Wholesale 214.2 186.8 14.7%
----- ----- ----
Total Revenue $4,175.0 $3,919.2 6.5%
======== ======== ===
Retail Automotive Gross Profit: (Amounts in Millions)
New Vehicles $167.6 $156.4 7.2%
Used Vehicles 84.5 86.5 -2.3%
Finance and
Insurance, Net 111.1 104.5 6.3%
Service and Parts 260.3 246.0 5.8%
Fleet and Wholesale 4.6 4.3 7.0%
--- --- ---
Total Gross Profit $628.1 $597.7 5.1%
====== ====== ===
Retail Automotive Revenue per Vehicle Retailed:
New Vehicles $40,086 $40,350 -0.7%
Used Vehicles 26,554 26,544 --
Retail Automotive Gross Profit per Vehicle Retailed:
New Vehicles $3,146 $3,127 0.6%
Used Vehicles 1,758 1,922 -8.5%
Finance & Insurance 1,096 1,099 -0.3%
PENSKE AUTOMOTIVE GROUP, INC.
Retail Automotive Operations
Selected Data
(Unaudited)
Three Months Ended
March 31,
---------
2015 2014
---- ----
Retail Automotive Revenue Mix Percentages:
New Vehicles 51.2% 51.5%
Used Vehicles 30.6% 30.5%
Finance and Insurance, Net 2.7% 2.7%
Service and Parts 10.5% 10.6%
Fleet and Wholesale 5.0% 4.7%
--- ---
Total 100.0% 100.0%
===== =====
Retail Automotive Gross Profit Mix Percentages:
New Vehicles 26.7% 26.2%
Used Vehicles 13.5% 14.5%
Finance and Insurance, Net 17.7% 17.5%
Service and Parts 41.4% 41.2%
Fleet and Wholesale 0.7% 0.6%
--- ---
Total 100.0% 100.0%
===== =====
Three Months Ended
March 31,
---------
2015 2014 Increase/
(Decrease)
---------
Retail Automotive
Operating Items as
a Percentage of
Revenue:
Gross Profit:
New Vehicle 7.8% 7.8% --
Used Vehicle 6.6% 7.2% -60 bps
Service and Parts 59.5% 59.2% 30 bps
Fleet and Wholesale 2.1% 2.3% -20 bps
--- --- -------
Total Gross Profit 15.0% 15.3% -30 bps
PENSKE AUTOMOTIVE GROUP, INC.
Retail Automotive Operations
Selected Data
(Unaudited)
Three Months Ended
March 31,
---------
2015 2014
---- ----
Retail Automotive Revenue Mix:
Premium:
BMW / MINI 27% 25%
Audi 13% 14%
Mercedes-Benz 10% 10%
Land Rover 7% 7%
Porsche 5% 5%
Lexus 4% 4%
Ferrari / Maserati 2% 2%
Acura 1% 1%
Bentley 1% 1%
Others 2% 3%
--- ---
Total Premium 72% 72%
Volume Non-U.S.:
Toyota 11% 11%
Honda 7% 8%
Volkswagen 3% 2%
Nissan 1% 1%
Others 2% 2%
--- ---
Total Volume Non-U.S. 24% 24%
U.S.:
General Motors / Chrysler / Ford 4% 4%
--- ---
Total 100% 100%
=== ===
Retail Automotive Geographic Revenue Mix:
U.S. 60% 59%
U.K. 38% 39%
Other International 2% 2%
--- ---
Total 100% 100%
=== ===
PENSKE AUTOMOTIVE GROUP, INC.
Retail Automotive Operations
Same-Store
Selected Data
(Unaudited)
Three Months Ended
March 31,
---------
2015 2014 Increase/
(Decrease)
----------
Retail Automotive Same-Store Units:
New Retail 52,384 49,857 5.1%
Used Retail 47,364 44,976 5.3%
------ ------ ---
Total Same-Store
Units Retailed 99,748 94,833 5.2%
====== ====== ===
Retail Automotive Same-Store Retail Revenue: (Amounts
in Millions)
New Vehicles $2,093.0 $2,010.0 4.1%
Used Vehicles 1,259.5 1,193.5 5.5%
Finance and
Insurance, Net 109.7 104.3 5.2%
Service and Parts 429.2 414.2 3.6%
----- ----- ---
Total Same-Store
Retail Revenue $3,891.4 $3,722.0 4.6%
======== ======== ===
Retail Automotive Same-Store Retail Gross Profit: (Amounts in Millions)
New Vehicles $164.9 $155.8 5.8%
Used Vehicles 83.5 86.4 -3.4%
Finance and
Insurance, Net 109.7 104.3 5.2%
Service and Parts 255.9 245.4 4.3%
----- ----- ---
Total Same-Store
Retail Gross
Profit $614.0 $591.9 3.7%
====== ====== ===
Retail Automotive Same-Store Revenue per Vehicle Retailed:
New Vehicles $39,956 $40,316 -0.9%
Used Vehicles 26,591 26,537 0.2%
Retail Automotive Same-Store Gross Profit per Vehicle
Retailed:
New Vehicles $3,148 $3,126 0.7%
Used Vehicles 1,763 1,921 -8.2%
Finance & Insurance 1,100 1,100 --
PENSKE AUTOMOTIVE GROUP, INC.
U.S. Commercial Truck Operations
Selected Data
(Unaudited)
Three Months Ended
March 31, 2015
--------------
U.S. Commercial Truck Units:
New Retail 1,039
Used Retail 296
---
Total Truck Units 1,335
=====
U.S. Commercial Truck Revenue: (Amounts in Millions)
New Vehicles $102.2
Used Vehicles 15.9
Finance and Insurance, Net 1.3
Service and Parts 63.1
Lease, Rental & Wholesale 10.2
----
Total Revenue $192.7
======
U.S. Commercial Truck Gross Profit: (Amounts in Millions)
New Vehicles $4.9
Used Vehicles 1.7
Finance and Insurance, Net 1.3
Service and Parts 23.4
Lease, Rental & Wholesale 1.5
---
Total Gross Profit $32.8
=====
U.S. Commercial Truck Revenue per Vehicle:
New Vehicles $98,345
Used Vehicles $53,700
U.S. Commercial Truck Gross Profit per Vehicle:
New Vehicles $4,691
Used Vehicles $5,882
Finance and Insurance $1,008
U.S. Commercial Truck Operating Items as a Percentage of
Revenue:
Gross Profit:
New Vehicle 4.8%
Used Vehicle 10.7%
Service and Parts 37.1%
Lease, Rental & Wholesale 14.7%
----
Total Gross Profit 17.0%
====
Note: Acquired in November 2014; therefore, results shown are for only the three-month period ending March 31, 2015.
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, 2015, and 2014:
Three Months Ended
March 31,
---------
(Amounts in Millions) 2015 2014 Increase/
(Decrease)
----------
Net Income $75.9 $67.9 11.8%
Depreciation 18.6 16.1 15.5%
Other Interest Expense 16.3 12.4 31.5%
Income Taxes 38.8 34.7 11.8%
Loss/(Income) from Discontinued
Operations, net of tax 1.2 (0.3) nm
--- ---- ---
EBITDA $150.8 $130.8 15.3%
nm - not meaningful
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SOURCE Penske Automotive Group, Inc.
