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Penske Automotive Reports First Quarter 2019 Results

Income From Continuing Operations of $100.1 million, and Related Earnings Per Share of $1.19

Used to New Units Sold Ratio Increases to 1.34 to 1

Retail Commercial Truck Same-Store Revenue Increases 12.4%

1.3 Million Shares Repurchased During First Quarter

BLOOMFIELD HILLS, Mich., April 25, 2019 /PRNewswire/ -- Penske Automotive Group, Inc. (PAG), a diversified international transportation services company, today announced first quarter 2019 results. For the three months ended March 31, 2019, the company reported income from continuing operations attributable to common shareholders of $100.1 million, or $1.19 per share, compared to $108.0 million, or $1.26 per share in the prior year.

During the three months ended March 31, 2019, income from continuing operations and related earnings per share were negatively impacted by $7.6 million after taxes, or $0.09 per share, from net restructuring charges and product availability shortages related to Worldwide Light Vehicle Testing Protocol (WLTP). These costs were partially offset by $2.4 million after taxes, or $0.03 per share, related to the favorable outcome of a litigation matter at Penske Truck Leasing. Foreign exchange negatively affected earnings per share by $0.04 in the first quarter 2019.

The results for the three months ended March 31, 2018 include a net benefit totaling $1.0 million or $0.01 per share, related to strategic dealership actions. On January 1, 2019, the company adopted ASC 842 for lease recognition and recorded operating lease right-of-use assets and operating lease liabilities of approximately $2.3 billion each on our balance sheet as of March 31, 2019.

Chairman Roger Penske said, "I am pleased with our first quarter performance and optimistic about the remainder of the year. We repurchased 1.5%, or 1.3 million, of our outstanding shares while holding long-term debt flat with December last year. Further, I am particularly pleased to see the 5.6% increase in same-store service and parts revenue when excluding the impact of foreign exchange and the increase in our used to new ratio. As I look forward, the product availability issues created by WLTP have improved, and I am encouraged by the strong order book in the U.K., the continued strength in our retail truck operations, and the resilience shown by our dealership operations."

 Automotive Retail Highlights of the First Quarter

  • Same-Store Retail Unit Sales -3.8% to 124,725
  • Same-Store Retail Revenue -4.5%; Excluding Foreign Exchange -1.4%

 





Actual

Excl. F/X

New Vehicles

-9.4%

-6.9%

Used Vehicles

-0.5%

+3.4%

Finance & Insurance

-0.4%

+2.8%

Service & Parts

+3.0%

+5.6%

 

  • Same-Store Average Gross Profit Per Unit

 






New

Used

F & I

Actual

$3,153

$1,301

$1,262

Change

+$49

-$209

+$42





Excl. Foreign Exchange

$3,253

$1,347

$1,303

Change

+$149

-$163

+$83

 

Used Supercenter Operations

For the three months ended March 31, 2019, the used supercenters retailed 18,040 used units and generated $314.4 million in revenue. The company expects to open four additional used vehicle supercenters during the second half of 2019, including two sites in the U.S. and another two in the U.K.

Retail Commercial Truck Operations

For the three months ended March 31, 2019, total medium and heavy duty truck units retailed increased 9.4% and revenue increased 13.6% to $332.3 million. Same-store units retailed increased 7.7% and revenue increased 12.4%. Service and parts represented 27.5% of revenue and 66.4% of gross profit. Same-store service and parts revenue increased 1.1%.

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. The company accounts for its ownership interest in PTL using the equity method of accounting. For the three months ended March 31, 2019, the company recorded $25.8 million in earnings from this investment compared to $16.0 million for the same period last year.

Dividend and Share Repurchases

On January 30, 2019, the company announced that its Board of Directors increased the dividend to its common stock shareholders to $0.38 per share, the 31st consecutive increase in the quarterly dividend.

During the three months ended March 31, 2019, the company repurchased approximately 1.5% of its outstanding shares, representing 1,258,348 shares, for $54.3 million, or an average of $43.19 per share. As of March 31, 2019, the company had remaining share repurchase authorization of approximately $145.7 million.

Conference Call

Penske Automotive Group will host a conference call discussing financial results relating to the first quarter of 2019 on Thursday, April 25, 2019, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (800) 230-1093 [International, please dial (612) 332-0107]. The call will also be simultaneously broadcast over the Internet through the Investor's section of the Penske Automotive Group website. Additionally, an investor presentation relating to the first quarter 2019 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., (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 27,000 people worldwide and is a member of the Fortune 500 and Russell 2000, and is ranked among the World's Most Admired Companies by Fortune Magazine. 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 product availability, 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, changes in interest rates and foreign currency exchange rates, changes in tariff rates, adverse impacts related to the outcome of the United Kingdom's potential departure from the European Union, adverse conditions affecting a particular manufacturer, including the adverse impact to the vehicle and parts supply chain due to limited vehicle availability due to WLTP, natural disasters, recall or other disruptions that interrupt the supply of vehicles or parts to us, changes in consumer credit availability, the outcome of legal and administrative matters, and other factors over which management has limited control. These forward-looking statements should be evaluated together with additional information about Penske Automotive 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, 2018, 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.

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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





March 31,





2019


2018


Change



Revenue


$

5,564.4


$

5,746.9


(3.2)

%



Cost of Sales



4,712.9



4,882.5


(3.5)

%



Gross Profit


$

851.5


$

864.4


(1.5)

%



SG&A Expenses



666.4



663.1


0.5

%



Depreciation



26.4



25.6


3.1

%



Operating Income


$

158.7


$

175.7


(9.7)

%



Floor Plan Interest Expense



(21.8)



(18.9)


15.3

%



Other Interest Expense



(29.9)



(29.8)


0.3

%



Equity in Earnings of Affiliates



26.8



17.3


54.9

%



Income from Continuing Operations Before Income Taxes


$

133.8


$

144.3


(7.3)

%



Income Taxes



(34.7)



(36.6)


(5.2)

%



Income from Continuing Operations


$

99.1


$

107.7


(8.0)

%



Income from Discontinued Operations, net of tax



0.1



0.1


nm




Net Income


$

99.2


$

107.8


(8.0)

%



Less: Loss Attributable to Non-Controlling Interests



(1.0)



(0.3)


nm




Net Income Attributable to Common Shareholders


$

100.2


$

108.1


(7.3)

%















Amounts Attributable to Common Shareholders:












Reported Income from Continuing Operations


$

99.1


$

107.7


(8.0)

%



Less: Loss Attributable to Non-Controlling Interests



(1.0)



(0.3)


nm




Income from Continuing Operations, net of tax


$

100.1


$

108.0


(7.3)

%



Income from Discontinued Operations, net of tax



0.1



0.1


nm




Net Income Attributable to Common Shareholders


$

100.2


$

108.1


(7.3)

%



Income from Continuing Operations Per Share


$

1.19


$

1.26


(5.6)

%



Income Per Share


$

1.19


$

1.26


(5.6)

%



Weighted Average Shares Outstanding



84.4



86.0


(1.9)

%















nm – not meaningful












 

 

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Balance Sheets

(Amounts In Millions)

(Unaudited)










March 31,


December 31,



2019


2018

Assets:







Cash and Cash Equivalents


$

43.5


$

39.4

Accounts Receivable, Net



1,034.1



929.1

Inventories



4,104.1



4,040.1

Other Current Assets



101.5



86.6

Total Current Assets



5,283.2



5,095.2

Property and Equipment, Net



2,276.1



2,250.0

Operating Lease Right-of-Use Assets



2,340.6



Intangibles



2,247.9



2,238.2

Other Long-Term Assets



1,351.3



1,321.1

Total Assets


$

13,499.1


$

10,904.5








Liabilities and Equity:







Floor Plan Notes Payable


$

2,419.2


$

2,362.2

Floor Plan Notes Payable – Non-Trade



1,488.7



1,428.6

Accounts Payable



668.5



598.2

Accrued Expenses and Other Current Liabilities



698.7



566.6

Current Portion Long-Term Debt



94.5



92.0

Liabilities Held for Sale



0.5



0.7

Total Current Liabilities



5,370.1



5,048.3

Long-Term Debt



2,118.3



2,124.7

Long-Term Operating Lease Liabilities



2,308.4



Other Long-Term Liabilities



1,040.6



1,096.8

Total Liabilities



10,837.4



8,269.8

Equity



2,661.7



2,634.7

Total Liabilities and Equity


$

13,499.1


$

10,904.5








Supplemental Balance Sheet Information







New vehicle days' supply



62



72

Used vehicle days' supply



41



57

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Operations

Selected Data

(Unaudited)











Three Months Ended




March 31,




2019


2018


Geographic Revenue Mix:








North America



54.9

%


53.0

%

U.K.



36.7

%


38.2

%

Other International



8.4

%


8.8

%

Total



100.0

%


100.0

%









Revenue: (Amounts in Millions)








Retail Automotive


$

5,091.2


$

5,296.0


Retail Commercial Trucks



332.3



292.4


Commercial Vehicles Australia/Power Systems and Other



140.9



158.5


Total


$

5,564.4


$

5,746.9










Gross Profit: (Amounts in Millions)








Retail Automotive


$

761.5


$

778.3


Retail Commercial Trucks



54.4



46.6


Commercial Vehicles Australia/Power Systems and Other



35.6



39.5


Total


$

851.5


$

864.4










Gross Margin:








Retail Automotive



15.0

%


14.7

%

Retail Commercial Trucks



16.4

%


15.9

%

Commercial Vehicles Australia/Power Systems and Other



25.3

%


24.9

%

Total



15.3

%


15.0

%















Three Months Ended




March 31,










2019


2018


Operating Items as a Percentage of Revenue:






Gross Profit


15.3

%

15.0

%

Selling, General and Administrative Expenses


12.0

%

11.5

%

Operating Income


2.9

%

3.1

%

Income from Continuing Operations Before Income Taxes


2.4

%

2.5

%







Operating Items as a Percentage of Total Gross Profit:






Selling, General and Administrative Expenses


78.3

%

76.7

%

Operating Income


18.6

%

20.3

%



















Three Months Ended




March 31,










(Amounts in Millions)


2019


2018










EBITDA*


$

190.1


$

199.7


Floorplan Credits


$

8.5


$

8.5


Rent Expense


$

57.2


$

57.9


Capital Expenditures


$

63.1


$

64.7


Stock Repurchases


$

54.3


$

50.0


___________________________

* See the following Non-GAAP reconciliation table.

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

Selected Data – Revenue and Gross Profit Mix

(Unaudited)









Three Months Ended




March 31,




2019


2018


Retail Automotive Revenue Mix:






Premium:






BMW / MINI


22

%

22

%

Audi


12

%

14

%

Mercedes-Benz


10

%

10

%

Land Rover / Jaguar


10

%

9

%

Porsche


5

%

6

%

Ferrari / Maserati


3

%

3

%

Lexus


3

%

2

%

Acura


1

%

1

%

Bentley


1

%

1

%

Others


3

%

2

%

Total Premium


70

%

70

%

Volume Non-U.S.:






Toyota


9

%

9

%

Honda


6

%

6

%

Volkswagen


4

%

4

%

Nissan


1

%

1

%

Others


2

%

2

%

Total Volume Non-U.S.


22

%

22

%

U.S.:






General Motors / Chrysler / Ford


2

%

2

%

Stand-Alone Used


6

%

6

%

Total


100

%

100

%







Retail Automotive Geographic Revenue Mix:






U.S.


54

%

52

%

U.K.


40

%

41

%

Other International


6

%

7

%

Total


100

%

100

%







Retail Automotive Geographic Gross Profit Mix:






U.S.


58

%

57

%

U.K.


37

%

37

%

Other International


5

%

6

%

Total


100

%

100

%

 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

Selected Data

(Unaudited)













Three Months Ended



March 31,



2019


2018


Change

Retail Automotive Units:










New Retail



54,370



59,262


(8.3)

%

Used Retail



72,744



73,228


(0.7)

%

Total



127,114



132,490


(4.1)

%











Retail Automotive Revenue: (Amounts in Millions)










New Vehicles


$

2,231.2


$

2,446.8


(8.8)

%

Used Vehicles



1,852.0



1,866.8


(0.8)

%

Finance and Insurance, Net



160.0



160.8


(0.5)

%

Service and Parts



559.8



543.5


3.0

%

Fleet and Wholesale



288.2



278.1


3.6

%

Total Revenue


$

5,091.2


$

5,296.0


(3.9)

%











Retail Automotive Gross Profit: (Amounts in Millions)










New Vehicles


$

172.7


$

183.2


(5.7)

%

Used Vehicles



92.9



109.7


(15.3)

%

Finance and Insurance, Net



160.0



160.8


(0.5)

%

Service and Parts



331.4



318.1


4.2

%

Fleet and Wholesale



4.5



6.5


(30.8)

%

Total Gross Profit


$

761.5


$

778.3


(2.2)

%











Retail Automotive Revenue Per Vehicle Retailed:










New Vehicles


$

41,037


$

41,288


(0.6)

%

Used Vehicles



25,459



25,493


(0.1)

%











Retail Automotive Gross Profit Per Vehicle Retailed:










New Vehicles


$

3,176


$

3,091


2.7

%

Used Vehicles



1,278



1,498


(14.7)

%

Finance and Insurance



1,259



1,213


3.8

%











Retail Automotive Gross Margin:










New Vehicles



7.7

%


7.5

%

+20

bps

Used Vehicles



5.0

%


5.9

%

-90

bps

Service and Parts



59.2

%


58.5

%

+70

bps

Fleet and Wholesale



1.6

%


2.3

%

-70

bps

Total Gross Margin



15.0

%


14.7

%

+30

bps











Retail Automotive Revenue Mix Percentages:










New Vehicles



43.8

%


46.2

%

-240

bps

Used Vehicles



36.4

%


35.2

%

+120

bps

Finance and Insurance, Net



3.1

%


3.0

%

+10

bps

Service and Parts



11.0

%


10.3

%

+70

bps

Fleet and Wholesale



5.7

%


5.3

%

+40

bps

Total



100.0

%


100.0

%













Retail Automotive Gross Profit Mix Percentages:










New Vehicles



22.7

%


23.5

%

-80

bps

Used Vehicles



12.2

%


14.1

%

-190

bps

Finance and Insurance, Net



21.0

%


20.7

%

+30

bps

Service and Parts



43.5

%


40.9

%

+260

bps

Fleet and Wholesale



0.6

%


0.8

%

-20

bps

Total



100.0

%


100.0

%



 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations Same-Store

Selected Data

(Unaudited)













Three Months Ended



March 31,



2019


2018


Change

Retail Automotive Same-Store Units:










New Retail



53,112



58,062


(8.5)

%

Used Retail



71,613



71,532


0.1

%

Total



124,725



129,594


(3.8)

%











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










New Vehicles


$

2,171.2


$

2,397.3


(9.4)

%

Used Vehicles



1,823.4



1,832.1


(0.5)

%

Finance and Insurance, Net



157.5



158.2


(0.4)

%

Service and Parts



547.5



531.4


3.0

%

Fleet and Wholesale



280.2



271.6


3.2

%

Total Revenue


$

4,979.8


$

5,190.6


(4.1)

%











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










New Vehicles


$

167.5


$

180.2


(7.0)

%

Used Vehicles



93.1



108.0


(13.8)

%

Finance and Insurance, Net



157.5



158.2


(0.4)

%

Service and Parts



323.9



310.8


4.2

%

Fleet and Wholesale



4.5



6.7


(32.8)

%

Total Gross Profit


$

746.5


$

763.9


(2.3)

%











Retail Automotive Same-Store Revenue Per Vehicle Retailed:










New Vehicles


$

40,880


$

41,288


(1.0)

%

Used Vehicles



25,462



25,612


(0.6)

%











Retail Automotive Same-Store Gross Profit Per Vehicle Retailed:










New Vehicles


$

3,153


$

3,104


1.6

%

Used Vehicles



1,301



1,510


(13.8)

%

Finance and Insurance



1,262



1,220


3.4

%











Retail Automotive Same-Store Gross Margin:










New Vehicles



7.7

%


7.5

%

+20

bps

Used Vehicles



5.1

%


5.9

%

-80

bps

Service and Parts



59.2

%


58.5

%

+70

bps

Fleet and Wholesale



1.6

%


2.5

%

-90

bps

Total Gross Margin



15.0

%


14.7

%

+30

bps











Retail Automotive Revenue Mix Percentages:










New Vehicles



43.6

%


46.2

%

-260

bps

Used Vehicles



36.6

%


35.3

%

+130

bps

Finance and Insurance, Net



3.2

%


3.0

%

+20

bps

Service and Parts



11.0

%


10.2

%

+80

bps

Fleet and Wholesale



5.6

%


5.3

%

+30

bps

Total



100.0

%


100.0

%













Retail Automotive Gross Profit Mix Percentages:










New Vehicles



22.4

%


23.6

%

-120

bps

Used Vehicles



12.5

%


14.1

%

-160

bps

Finance and Insurance, Net



21.1

%


20.7

%

+40

bps

Service and Parts



43.4

%


40.7

%

+270

bps

Fleet and Wholesale



0.6

%


0.9

%

-30

bps

Total



100.0

%


100.0

%



 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Commercial Truck Operations

Selected Data

(Unaudited)













Three Months Ended



March 31,



2019


2018


Change

Retail Commercial Truck Units:










New Retail



1,887



1,655


14.0

%

Used Retail



416



451


(7.8)

%

Total



2,303



2,106


9.4

%











Retail Commercial Truck Revenue: (Amounts in Millions)










New Vehicles


$

207.4


$

170.4


21.7

%

Used Vehicles



24.1



26.5


(9.1)

%

Finance and Insurance, Net



3.0



3.2


(6.3)

%

Service and Parts



91.5



90.4


1.2

%

Other



6.3



1.9


231.6

%

Total Revenue


$

332.3


$

292.4


13.6

%











Retail Commercial Truck Gross Profit: (Amounts in Millions)










New Vehicles


$

10.2


$

6.7


52.2

%

Used Vehicles



2.7



2.7


%

Finance and Insurance, Net



3.0



3.2


(6.3)

%

Service and Parts



36.1



34.0


6.2

%

Other



2.4




nm


Total Gross Profit


$

54.4


$

46.6


16.7

%











Retail Commercial Truck Revenue Per Vehicle Retailed:










New Vehicles


$

109,887


$

102,978


6.7

%

Used Vehicles



58,032



58,708


(1.2)

%











Retail Commercial Truck Gross Profit Per Vehicle Retailed:










New Vehicles


$

5,391


$

4,067


32.6

%

Used Vehicles



6,557



5,829


12.5

%

Finance and Insurance



1,309



1,520


(13.9)

%











Retail Commercial Truck Gross Margin:










New Vehicles



4.9

%


3.9

%

+100

bps

Used Vehicles



11.2

%


10.2

%

+100

bps

Service and Parts



39.5

%


37.6

%

+190

bps

Total Gross Margin



16.4

%


15.9

%

+50

bps











Retail Commercial Truck Revenue Mix Percentages:










New Vehicles



62.4

%


58.3

%

+410

bps

Used Vehicles



7.3

%


9.1

%

-180

bps

Finance and Insurance, Net



0.9

%


1.1

%

-20

bps

Service and Parts



27.5

%


30.9

%

-340

bps

Other



1.9

%


0.6

%

+130

bps

Total



100.0

%


100.0

%













Retail Commercial Truck Gross Profit Mix Percentages:










New Vehicles



18.8

%


14.4

%

+440

bps

Used Vehicles



5.0

%


5.8

%

-80

bps

Finance and Insurance, Net



5.5

%


6.8

%

-130

bps

Service and Parts



66.4

%


73.0

%

-660

bps

Other



4.3

%


%

+430

bps

Total



100.0

%


100.0

%



 

 

PENSKE AUTOMOTIVE GROUP, INC.

Retail Commercial Truck Operations Same-Store

Selected Data

(Unaudited)













Three Months Ended



March 31,



2019


2018


Change

Retail Commercial Truck Same-Store Units:










New Retail



1,859



1,655


12.3

%

Used Retail



409



451


(9.3)

%

Total



2,268



2,106


7.7

%











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










New Vehicles


$

204.0


$

170.4


19.7

%

Used Vehicles



24.4



26.5


(7.9)

%

Finance and Insurance, Net



4.8



3.2


50.0

%

Service and Parts



90.8



89.8


1.1

%

Other



4.0



1.9


110.5

%

Total Revenue


$

328.0


$

291.8


12.4

%











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










New Vehicles


$

9.9


$

6.7


47.8

%

Used Vehicles



3.2



2.7


18.5

%

Finance and Insurance, Net



4.8



3.2


50.0

%

Service and Parts



35.8



33.8


5.9

%

Other






nm


Total Gross Profit


$

53.7


$

46.4


15.7

%











Retail Commercial Truck Same-Store Revenue Per Vehicle Retailed:










New Vehicles


$

109,762


$

102,978


6.6

%

Used Vehicles



59,682



58,708


1.7

%











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










New Vehicles


$

5,332


$

4,067


31.1

%

Used Vehicles



7,864



5,829


34.9

%

Finance and Insurance



2,115



1,520


39.1

%











Retail Commercial Truck Same-Store Gross Margin:










New Vehicles



4.9

%


3.9

%

+100

bps

Used Vehicles



13.1

%


10.2

%

+290

bps

Service and Parts



39.4

%


37.6

%

+180

bps

Total Gross Margin



16.4

%


15.9

%

+50

bps











Retail Commercial Truck Revenue Mix Percentages:










New Vehicles



62.2

%


58.4

%

+380

bps

Used Vehicles



7.4

%


9.1

%

-170

bps

Finance and Insurance, Net



1.5

%


1.1

%

+40

bps

Service and Parts



27.7

%


30.8

%

-310

bps

Other



1.2

%


0.6

%

+60

bps

Total



100.0

%


100.0

%













Retail Commercial Truck Gross Profit Mix Percentages:










New Vehicles



18.4

%


14.4

%

+400

bps

Used Vehicles



6.0

%


5.8

%

+20

bps

Finance and Insurance, Net



8.9

%


6.9

%

+200

bps

Service and Parts



66.7

%


72.9

%

-620

bps

Other



%


%

---

bps

Total



100.0

%


100.0

%



 

 

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, 2019 and 2018:
















Three Months Ended









March 31,


2019 vs. 2018

(Amounts in Millions)


2019


2018


Change


% Change














Net Income


$

99.2


$

107.8


$

(8.6)


(8.0)

%

Add: Depreciation



26.4



25.6



0.8


3.1

%

Other Interest Expense



29.9



29.8



0.1


0.3

%

Income Taxes



34.7



36.6



(1.9)


(5.2)

%

Income from Discontinued Operations, net of tax



(0.1)



(0.1)





EBITDA


$

190.1


$

199.7


$

(9.6)


(4.8)

%


nm – not meaningful

 

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