BLOOMFIELD HILLS, Mich., Oct. 25, 2017 /PRNewswire/ --

Third Quarter 2017

Nine Months 2017

- Revenue Increases 7.2% to $5.5 Billion; Excluding Foreign Exchange +6.9%

- Revenue Increases 5.0% to $16.0 Billion; Excluding Foreign Exchange +8.0%

- Income from Continuing Operations Attributable to Common Shareholders Increases 7.9% to $94.3 Million; Excluding Foreign Exchange +7.6% to $94.0 Million

- Income from Continuing Operations Attributable to Common Shareholders Increases 8.5% to $283.5 Million; Excluding Foreign Exchange +12.4% to $293.8 Million

- Earnings Per Share from Continuing Operations Attributable to Common Shareholders Increases 6.8% to $1.10; No Earnings Per Share Impact from Foreign Exchange

- Earnings Per Share from Continuing Operations Attributable to Common Shareholders Increases 8.9% to $3.30; Excluding Foreign Exchange +12.9% to $3.42

Penske Automotive Group, Inc. (NYSE: PAG), an international transportation services company, today announced record third quarter results. For the three months ended September 30, 2017, income from continuing operations attributable to common shareholders increased 7.9% to $94.3 million, and related earnings per share increased 6.8% to $1.10 when compared to the same period last year. Total automotive retail unit volume increased 9.9% and total revenue increased 7.2% to $5.5 billion. Excluding foreign exchange, total revenue increased 6.9%. There was no impact to earnings per share from foreign exchange during the third quarter. During the third quarter, operations in certain markets were disrupted by several hurricanes which impacted our ability to sell and service vehicles. We estimate that storm-related losses, expenses and business interruption adversely impacted income from continuing operations and earnings per share by approximately $3.0 million and $0.04 per share, respectively.

Commenting on the company's results, Penske Automotive Group Chairman Roger S. Penske said, 'I am pleased to report another quarter of record performance for our diversified transportation services business. Third quarter results were driven by recently completed acquisitions, improving variable gross profit per unit retailed and a 200 basis-point increase in service/parts gross margin, coupled with strong performance from our North American retail commercial truck operations and our equity investment in Penske Truck Leasing.'

Automotive Retail Highlights of the Third Quarter

  • Retail Unit Sales +9.9% to 130,257
    • New unit retail sales -2.5%
    • Used unit retail sales +25.4%
  • Same-Store Retail Unit Sales -2.9% to 114,941
    • New unit retail sales -6.2%
    • Used unit retail sales +1.2%
  • Same-Store Retail Revenue -1.0%; Excluding F/X -1.2%
    • New -3.5%; Used +1.7%; Finance & Insurance +5.0%; Service and Parts +1.5%
    • -2.4% in the United States; +1.1% Internationally
  • Average Transaction Price Per Unit
    • New $38,542; +3.8%
    • Used $25,337; -7.6%
  • Average Gross Profit Per Unit
    • New $2,877 (Excluding F/X $2,863), +$186/unit; Gross Margin 7.5%, +20 basis points
    • Used $1,434, -$158/unit; Gross Margin 5.7%, -10 basis points
    • Finance & Insurance $1,167, +$79/unit

Note: F/X = foreign exchange

For the nine months ended September 30, 2017, total revenue increased 5.0% to $16.0 billion, with a 2.9% decrease in same-store retail revenue. Excluding foreign exchange, total revenue increased 8.0%, while same-store retail revenue increased 0.3%. Total automotive retail unit volume increased 10.6%, with a 2.6% decrease on a same-store basis. Income from continuing operations attributable to common shareholders increased 8.5% to $283.5 million and related earnings per share increased 8.9% to $3.30 when compared to the same period last year. Foreign exchange rates negatively impacted earnings per share attributable to common shareholders by $0.12.

RetailCommercial Truck Operations

Penske Automotive Group operates twenty medium and heavy-duty truck dealership 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 nine months ended September 30, 2017, Premier Truck Group retailed 2,096 and 5,162 units, generated $299.6 million and $739.8 million of revenue, and $44.3 million and $120.7 million of gross profit, respectively, principally through the retail sale of new/used medium and heavy-duty trucks and service/parts sales. Same-store revenue increased 11.8% and declined 10.4% for the three and nine months ended September 30, 2017, respectively. For the three months ended September 30, 2017, gross profit per used truck retailed improved to $5,500 from a loss of $1,431 per unit in the same period last year, as used truck prices stabilized. Service and parts gross profit represented approximately 71.6% and 75.2% of Premier Truck Group's gross profit for the three and nine months ended September 30, 2017, respectively.

Penske Truck Leasing

Penske Truck Leasing Co., L.P. ('PTL') is a leading provider of full-service truck leasing, truck rental, contract maintenance and logistics services. During the third quarter of 2016, the company increased its ownership interest in PTL from 9.0% to 23.4%, and in the third quarter of 2017, increased its ownership by another 5.5%, bringing the total ownership interest in PTL to 28.9%. For the three and nine months ended September 30, 2017, the company recorded $30.1 million and $66.9 million as part of equity in earnings of affiliates compared to $23.8 million and $36.6 million for the same periods last year, respectively. The company accounts for its ownership interest in PTL using the equity method of accounting.

Dividend and Share Repurchases

On October 11, 2017, the company announced that its Board of Directors increased the dividend to its common stock shareholders to $0.33 per share, the twenty-sixth consecutive increase in the quarterly dividend.

During the three months ended September 30, 2017, the company repurchased 252,000 shares for $10.0 million, or an average of $39.75 per share. For the nine months ended September 30, 2017, the company has repurchased 302,000 shares for $12.7 million, or an average $41.95 per share. In October 2017, the Board of Directors approved an increase in the company's securities repurchase authorization to $200.0 million.

Conference Call

Penske Automotive Group will host a conference call discussing financial results relating to the third quarter of 2017 on Wednesday, October 25, 2017, at 2:00 p.m.Eastern Daylight Time. To listen to the conference call, participants must dial (800) 230‑1766 - [International, please dial (612) 332‑0107]. 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 third quarter 2017 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 26,000 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 and earnings 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 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 such as the recent hurricanes, 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 Group's business, markets, conditions and other uncertainties, which could affect Penske Automotive Group's future performance. These risks and uncertainties are addressed in Penske Automotive Group's Form 10‑K for the year ended December 31, 2016, and its other filings with the Securities and Exchange Commission ('SEC'). This press release speaks only as of its date, and Penske Automotive Group 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/penskecars
Visit Penske Automotive on YouTube: http://www.youtube.com/penskecars

Inquiries should contact:

J.D. Carlson

Anthony R. Pordon

Executive Vice President and

Executive Vice President Investor Relations

Chief Financial Officer

and Corporate Development

Penske Automotive Group, Inc.

Penske Automotive Group, Inc.

248-648-2810

248-648-2540

jcarlson@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

Nine Months Ended

September 30,

September 30,

Increase/

Increase/

2017

2016

(Decrease)

2017

2016

(Decrease)

Revenue

$

5,524.4

$

5,152.0

7.2

%

$

15,988.9

$

15,230.7

5.0

%

Cost of Sales

4,701.8

4,407.8

6.7

%

13,574.7

12,991.4

4.5

%

Gross Profit

$

822.6

$

744.2

10.5

%

$

2,414.2

$

2,239.3

7.8

%

SG&A Expenses

646.1

581.2

11.2

%

1,869.8

1,722.8

8.5

%

Depreciation

24.3

21.5

13.0

%

70.0

66.8

4.8

%

Operating Income

$

152.2

$

141.5

7.6

%

$

474.4

$

449.7

5.5

%

Floor Plan Interest Expense

(16.4)

(11.9)

37.8

%

(45.6)

(37.8)

20.6

%

Other Interest Expense

(27.8)

(25.1)

10.8

%

(79.2)

(61.8)

28.2

%

Equity in Earnings of Affiliates

30.9

25.6

20.7

%

70.9

43.1

64.5

%

Income from Continuing Operations Before Income Taxes

$

138.9

$

130.1

6.8

%

$

420.5

$

393.2

6.9

%

Income Taxes

(44.7)

(41.7)

7.2

%

(136.0)

(128.4)

5.9

%

Income from Continuing Operations

$

94.2

$

88.4

6.6

%

$

284.5

$

264.8

7.4

%

Income (Loss) from Discontinued Operations, net of tax

0.1

0.1

-

%

(0.3)

(1.1)

(72.7)

%

Net Income

$

94.3

$

88.5

6.6

%

$

284.2

$

263.7

7.8

%

Less: (Loss) Income Attributable to Non-Controlling Interests

(0.1)

1.0

(110.0)

%

1.0

3.4

(70.6)

%

Net Income Attributable to Common Shareholders

$

94.4

$

87.5

7.9

%

$

283.2

$

260.3

8.8

%

Amounts Attributable to Common Shareholders:

Reported Income from Continuing Operations

$

94.2

$

88.4

6.6

%

$

284.5

$

264.8

7.4

%

Less: (Loss) Income Attributable to Non-Controlling Interests

(0.1)

1.0

(110.0)

%

1.0

3.4

(70.6)

%

Income from Continuing Operations, net of tax

$

94.3

$

87.4

7.9

%

$

283.5

$

261.4

8.5

%

Income (Loss) from Discontinued Operations, net of tax

0.1

0.1

-

%

(0.3)

(1.1)

(72.7)

%

Net Income Attributable to Common Shareholders

$

94.4

$

87.5

7.9

%

$

283.2

$

260.3

8.8

%

Income from Continuing Operations Per Share

$

1.10

$

1.03

6.8

%

$

3.30

$

3.03

8.9

%

Income Per Share

$

1.10

$

1.03

6.8

%

$

3.30

$

3.02

9.3

%

Weighted Average Shares Outstanding

86.0

85.2

0.9

%

85.9

86.3

(0.5)

%

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Balance Sheets

(Amounts In Millions)

(Unaudited)

September 30,

December 31,

2017

2016

Assets:

Cash and Cash Equivalents

$

37.2

$

24.0

Accounts Receivable, Net

938.8

879.0

Inventories

3,770.3

3,408.2

Other Current Assets

96.5

73.9

Assets Held for Sale

-

8.4

Total Current Assets

4,842.8

4,393.5

Property and Equipment, Net

2,091.4

1,806.5

Intangibles

2,133.7

1,711.3

Other Long-Term Assets

1,214.4

921.7

Total Assets

$

10,282.3

$

8,833.0

Liabilities and Equity:

Floor Plan Notes Payable

$

2,222.3

$

2,084.5

Floor Plan Notes Payable - Non-Trade

1,388.5

1,233.3

Accounts Payable

627.6

497.4

Accrued Expenses

369.9

360.0

Current Portion Long-Term Debt

67.6

48.3

Liabilities Held for Sale

0.7

6.1

Total Current Liabilities

4,676.6

4,229.6

Long-Term Debt

2,170.5

1,828.8

Other Long-Term Liabilities

1,323.2

995.1

Total Liabilities

8,170.3

7,053.5

Equity

2,112.0

1,779.5

Total Liabilities and Equity

$

10,282.3

$

8,833.0

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Operations

Selected Data

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2017

2016

2017

2016

Geographic Revenue Mix:

North America

58.9

%

60.7

%

58.6

%

59.4

%

U.K.

33.8

%

32.7

%

33.9

%

33.6

%

Other International

7.3

%

6.6

%

7.5

%

7.0

%

Total

100.0

%

100.0

%

100.0

%

100.0

%

Revenue: (Amounts in Millions)

Retail Automotive

$

5,085.4

$

4,772.1

$

14,882.5

$

14,121.8

Retail Commercial Trucks

299.6

266.1

739.8

782.3

Commercial Vehicles Australia/Power Systems and Other

139.4

113.8

366.6

326.6

Total

$

5,524.4

$

5,152.0

$

15,988.9

$

15,230.7

Gross Profit: (Amounts in Millions)

Retail Automotive

$

744.2

$

674.7

$

2,198.5

$

2,041.7

Retail Commercial Trucks

44.3

38.2

120.7

109.7

Commercial Vehicles Australia/Power Systems and Other

34.1

31.3

95.0

87.9

Total

$

822.6

$

744.2

$

2,414.2

$

2,239.3

Gross Margin:

Retail Automotive

14.6

%

14.1

%

14.8

%

14.5

%

Retail Commercial Trucks

14.8

%

14.4

%

16.3

%

14.0

%

Commercial Vehicles Australia/Power Systems and Other

24.5

%

27.5

%

25.9

%

26.9

%

Total

14.9

%

14.4

%

15.1

%

14.7

%

Three Months Ended

Nine Months Ended

September 30,

September 30,

Increase/

Increase/

2017

2016

(Decrease)

2017

2016

(Decrease)

Operating Items as a Percentage of Revenue:

Gross Profit

14.9

%

14.4

%

50

bps

15.1

%

14.7

%

40

bps

Selling, General and Administrative Expenses

11.7

%

11.3

%

40

bps

11.7

%

11.3

%

40

bps

Operating Income

2.8

%

2.7

%

10

bps

3.0

%

3.0

%

-

bps

Inc. From Cont. Ops. Before Inc. Taxes

2.5

%

2.5

%

-

bps

2.6

%

2.6

%

-

bps

Operating Items as a Percentage of Total Gross Profit:

Selling, General and Administrative Expenses

78.5

%

78.1

%

40

bps

77.5

%

76.9

%

60

bps

Operating Income

18.5

%

19.0

%

(50)

bps

19.7

%

20.1

%

(40)

bps

Three Months Ended

Nine Months Ended

September 30,

September 30,

Increase/

Increase/

(Amounts in Millions)

2017

2016

(Decrease)

2017

2016

(Decrease)

EBITDA*

$

191.0

$

176.7

8.1

%

$

569.7

$

521.8

9.2

%

Floorplan Credits

$

10.9

$

10.2

6.9

%

$

29.3

$

29.3

-

%

Rent Expense

$

59.3

$

50.9

16.5

%

$

168.1

$

154.3

8.9

%

* See the following Non-GAAP reconciliation table.

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

Selected Data

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2017

2016

2017

2016

Retail Automotive Units:

New Retail

64,365

65,986

187,377

186,909

Used Retail

65,892

52,536

194,384

158,213

Total

130,257

118,522

381,761

345,122

Retail Automotive Revenue: (Amounts in Millions)

New Vehicles

$

2,480.8

$

2,449.2

$

7,189.9

$

7,178.4

Used Vehicles

1,669.5

1,440.3

4,850.6

4,331.5

Finance and Insurance, Net

152.0

129.0

436.6

373.1

Service and Parts

520.9

492.2

1,540.1

1,466.5

Fleet and Wholesale

262.2

261.4

865.3

772.3

Total Revenue

$

5,085.4

$

4,772.1

$

14,882.5

$

14,121.8

Retail Automotive Gross Profit: (Amounts in Millions)

New Vehicles

$

185.2

$

177.6

$

552.6

$

546.2

Used Vehicles

94.5

83.7

282.4

257.8

Finance and Insurance, Net

152.0

129.0

436.6

373.1

Service and Parts

308.0

280.9

911.4

851.0

Fleet and Wholesale

4.5

3.5

15.5

13.6

Total Gross Profit

$

744.2

$

674.7

$

2,198.5

$

2,041.7

Retail Automotive Revenue Per Vehicle Retailed:

New Vehicles

$

38,542

$

37,117

$

38,371

$

38,406

Used Vehicles

25,337

27,415

24,954

27,377

Retail Automotive Gross Profit Per Vehicle Retailed:

New Vehicles

$

2,877

$

2,691

$

2,949

$

2,922

Used Vehicles

1,434

1,592

1,453

1,629

Finance & Insurance

1,167

1,088

1,144

1,081

Retail Automotive Gross Margin:

New Vehicles

7.5

%

7.3

%

7.7

%

7.6

%

Used Vehicles

5.7

%

5.8

%

5.8

%

6.0

%

Service and Parts

59.1

%

57.1

%

59.2

%

58.0

%

Fleet and Wholesale

1.7

%

1.3

%

1.8

%

1.8

%

Total Gross Margin

14.6

%

14.1

%

14.8

%

14.5

%

Retail Automotive Revenue Mix Percentages:

New Vehicles

48.8

%

51.3

%

48.3

%

50.8

%

Used Vehicles

32.8

%

30.2

%

32.6

%

30.7

%

Finance and Insurance, Net

3.0

%

2.7

%

2.9

%

2.6

%

Service and Parts

10.2

%

10.3

%

10.3

%

10.4

%

Fleet and Wholesale

5.2

%

5.5

%

5.9

%

5.5

%

Total

100.0

%

100.0

%

100.0

%

100.0

%

Retail Automotive Gross Profit Mix Percentages:

New Vehicles

24.9

%

26.3

%

25.1

%

26.8

%

Used Vehicles

12.7

%

12.4

%

12.8

%

12.6

%

Finance and Insurance, Net

20.4

%

19.1

%

19.9

%

18.3

%

Service and Parts

41.4

%

41.6

%

41.5

%

41.7

%

Fleet and Wholesale

0.6

%

0.6

%

0.7

%

0.6

%

Total

100.0

%

100.0

%

100.0

%

100.0

%

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

Selected Data

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2017

2016

2017

2016

Retail Automotive Revenue Mix:

Premium:

BMW / MINI

22

%

25

%

23

%

25

%

Audi

15

%

14

%

14

%

14

%

Mercedes-Benz

10

%

10

%

10

%

10

%

Land Rover / Jaguar

8

%

7

%

8

%

7

%

Porsche

6

%

5

%

6

%

5

%

Lexus

3

%

3

%

3

%

4

%

Ferrari / Maserati

3

%

3

%

3

%

3

%

Acura

1

%

1

%

1

%

1

%

Bentley

1

%

1

%

1

%

1

%

Others

1

%

2

%

1

%

2

%

Total Premium

70

%

71

%

70

%

72

%

Volume Non-U.S.:

Toyota

10

%

11

%

10

%

11

%

Honda

7

%

7

%

7

%

7

%

Volkswagen

3

%

4

%

3

%

3

%

Nissan

1

%

1

%

1

%

1

%

Others

2

%

2

%

2

%

2

%

Total Volume Non-U.S.

23

%

25

%

23

%

24

%

U.S.:

General Motors / Chrysler / Ford

3

%

4

%

3

%

4

%

Stand-Alone Used

4

%

-

%

4

%

-

%

Total

100

%

100

%

100

%

100

%

Retail Automotive Geographic Revenue Mix:

U.S.

58

%

60

%

58

%

59

%

U.K.

37

%

35

%

36

%

36

%

Other International

5

%

5

%

6

%

5

%

Total

100

%

100

%

100

%

100

%

Retail Automotive Geographic Gross Profit Mix:

U.S.

62

%

64

%

62

%

63

%

U.K.

33

%

32

%

32

%

32

%

Other International

5

%

4

%

6

%

5

%

Total

100

%

100

%

100

%

100

%

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

Same-Store

Selected Data

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2017

2016

2017

2016

Retail Automotive Same-Store Units:

New Retail

61,860

65,920

175,726

184,087

Used Retail

53,081

52,468

155,732

156,186

Total

114,941

118,388

331,458

340,273

Retail Automotive Same-Store Revenue: (Amounts in Millions)

New Vehicles

$

2,362.1

$

2,446.6

$

6,735.8

$

7,081.8

Used Vehicles

1,463.0

1,438.8

4,209.2

4,273.0

Finance and Insurance, Net

135.4

128.9

385.7

369.2

Service and Parts

498.8

491.3

1,467.1

1,455.8

Fleet and Wholesale

219.9

261.2

752.0

767.0

Total Revenue

$

4,679.2

$

4,766.8

$

13,549.8

$

13,946.8

Retail Automotive Same-Store Gross Profit: (Amounts in Millions)

New Vehicles

$

175.7

$

177.4

$

513.9

$

538.4

Used Vehicles

78.7

83.5

234.7

255.1

Finance and Insurance, Net

135.4

128.9

385.7

369.2

Service and Parts

293.1

280.4

863.2

844.3

Fleet and Wholesale

4.2

3.5

13.7

13.7

Total Gross Profit

$

687.1

$

673.7

$

2,011.2

$

2,020.7

Retail Automotive Same-Store Revenue Per Vehicle Retailed:

New Vehicles

$

38,185

$

37,114

$

38,331

$

38,470

Used Vehicles

27,561

27,422

27,028

27,359

Retail Automotive Same-Store Gross Profit Per Vehicle Retailed:

New Vehicles

$

2,841

$

2,691

$

2,924

$

2,925

Used Vehicles

1,482

1,592

1,507

1,634

Finance & Insurance

1,178

1,089

1,164

1,085

Retail Automotive Same-Store Gross Margin:

New Vehicles

7.4

%

7.3

%

7.6

%

7.6

%

Used Vehicles

5.4

%

5.8

%

5.6

%

6.0

%

Service and Parts

58.8

%

57.1

%

58.8

%

58.0

%

Fleet and Wholesale

1.9

%

1.3

%

1.8

%

1.8

%

Total Gross Margin

14.7

%

14.1

%

14.8

%

14.5

%

Retail Automotive Revenue Mix Percentages:

New Vehicles

50.5

%

51.3

%

49.7

%

50.8

%

Used Vehicles

31.3

%

30.2

%

31.1

%

30.6

%

Finance and Insurance, Net

2.9

%

2.7

%

2.8

%

2.6

%

Service and Parts

10.7

%

10.3

%

10.8

%

10.4

%

Fleet and Wholesale

4.6

%

5.5

%

5.6

%

5.6

%

Total

100.0

%

100.0

%

100.0

%

100.0

%

Retail Automotive Gross Profit Mix Percentages:

New Vehicles

25.6

%

26.3

%

25.6

%

26.6

%

Used Vehicles

11.5

%

12.4

%

11.7

%

12.6

%

Finance and Insurance, Net

19.7

%

19.1

%

19.2

%

18.3

%

Service and Parts

42.7

%

41.6

%

42.9

%

41.8

%

Fleet and Wholesale

0.5

%

0.6

%

0.6

%

0.7

%

Total

100.0

%

100.0

%

100.0

%

100.0

%

PENSKE AUTOMOTIVE GROUP, INC.

Retail Commercial Truck Operations

Selected Data

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2017

2016

2017

2016

Retail Commercial Truck Units:

New Retail

1,632

1,668

3,932

4,777

Used Retail

464

226

1,230

771

Total Units

2,096

1,894

5,162

5,548

Retail Commercial Truck Revenue: (Amounts in Millions)

New Vehicles

$

184.3

$

168.8

$

411.5

$

497.5

Used Vehicles

25.7

11.3

67.9

38.6

Finance and Insurance, Net

2.1

1.8

6.6

5.5

Service and Parts

83.3

81.5

244.6

232.2

Lease, Rental & Wholesale

4.2

2.7

9.2

8.5

Total Revenue

$

299.6

$

266.1

$

739.8

$

782.3

Retail Commercial Truck Gross Profit: (Amounts in Millions)

New Vehicles

$

7.9

$

6.2

$

17.4

$

18.7

Used Vehicles

2.6

(0.3)

6.1

(1.3)

Finance and Insurance, Net

2.1

1.8

6.6

5.5

Service and Parts

31.7

30.0

90.8

85.7

Lease, Rental & Wholesale

-

0.5

(0.2)

1.1

Total Gross Profit

$

44.3

$

38.2

$

120.7

$

109.7

Retail Commercial Truck Revenue Per Vehicle Retailed:

New Vehicles

$

112,907

$

101,202

$

104,631

$

104,145

Used Vehicles

55,387

49,999

55,158

49,991

Retail Commercial Truck Gross Profit Per Vehicle Retailed:

New Vehicles

$

4,822

$

3,699

$

4,426

$

3,905

Used Vehicles

5,500

(1,431)

4,912

(1,681)

Finance and Insurance

1,016

965

1,275

992

Retail Commercial Truck Gross Margin:

New Vehicles

4.3

%

3.7

%

4.2

%

3.8

%

Used Vehicles

10.1

%

(2.7)

%

9.0

%

(3.4)

%

Service and Parts

38.1

%

36.8

%

37.1

%

36.9

%

Lease, Rental & Wholesale

-

%

18.5

%

(2.2)

%

12.9

%

Total Gross Margin

14.8

%

14.4

%

16.3

%

14.0

%

PENSKE AUTOMOTIVE GROUP, INC.

Retail Commercial Truck Operations

Same-Store

Selected Data

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2017

2016

2017

2016

Retail Commercial Truck Same-Store Units:

New Retail

1,620

1,668

3,303

4,155

Used Retail

464

226

1,070

755

Total Units

2,084

1,894

4,373

4,910

Retail Commercial Truck Same-Store Revenue: (Amounts in Millions)

New Vehicles

$

182.8

$

168.8

$

336.3

$

430.2

Used Vehicles

25.7

11.3

60.0

37.8

Finance and Insurance, Net

2.1

1.8

6.0

5.1

Service and Parts

82.6

81.5

212.5

214.4

Lease, Rental & Wholesale

4.4

2.7

9.0

8.5

Total Revenue

$

297.6

$

266.1

$

623.8

$

696.0

Retail Commercial Truck Same-Store Gross Profit: (Amounts in Millions)

New Vehicles

$

7.8

$

6.2

$

14.6

$

16.6

Used Vehicles

2.6

(0.3)

5.7

(1.4)

Finance and Insurance, Net

2.1

1.8

6.0

5.1

Service and Parts

31.3

30.0

80.3

80.0

Lease, Rental & Wholesale

-

0.5

(0.3)

1.1

Total Gross Profit

$

43.8

$

38.2

$

106.3

$

101.4

Retail Commercial Truck Same-Store Revenue Per Vehicle Retailed:

New Vehicles

$

112,861

$

101,202

$

101,830

$

103,549

Used Vehicles

55,387

49,999

56,098

50,072

Retail Commercial Truck Same-Store Gross Profit Per Vehicle Retailed:

New Vehicles

$

4,810

$

3,699

$

4,430

$

3,990

Used Vehicles

5,500

(1,431)

5,291

(1,806)

Finance and Insurance

1,019

965

1,373

1,038

Retail Commercial Truck Same-Store Gross Margin:

New Vehicles

4.3

%

3.7

%

4.3

%

3.9

%

Used Vehicles

10.1

%

(2.7)

%

9.5

%

(3.7)

%

Service and Parts

37.9

%

36.8

%

37.8

%

37.3

%

Lease, Rental & Wholesale

-

%

18.5

%

(3.3)

%

12.9

%

Total Gross Margin

14.7

%

14.4

%

17.0

%

14.6

%

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 nine months ended September 30, 2017 and 2016:

Three Months Ended

Nine Months Ended

September 30,

September 30,

Increase/

Increase/

(Amounts in Millions)

2017

2016

(Decrease)

2017

2016

(Decrease)

Net Income

$

94.3

$

88.5

6.6

%

$

284.2

$

263.7

7.8

%

Add: Depreciation

24.3

21.5

13.0

%

70.0

66.8

4.8

%

Other Interest Expense

27.8

25.1

10.8

%

79.2

61.8

28.2

%

Income Taxes

44.7

41.7

7.2

%

136.0

128.4

5.9

%

(Income) Loss from Discontinued Operations, net of tax

(0.1)

(0.1)

-

%

0.3

1.1

(72.7)

%

EBITDA

$

191.0

$

176.7

8.1

%

$

569.7

$

521.8

9.2

%

View original content with multimedia:http://www.prnewswire.com/news-releases/penske-automotive-reports-record-third-quarter-results-300542634.html

SOURCE Penske Automotive Group, Inc.

Penske Automotive Group Inc. published this content on 25 October 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 25 October 2017 11:07:12 UTC.

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