Penske Automotive Reports All Time Record Second Quarter Results

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Earnings Before Taxes, Net Income, and Earnings Per Share Increase By 650%

SG&A as a Percentage of Gross Profit Improves 1,860 Basis Points

Same-Store Retail Automotive Revenue Increases 97.5%

Share Repurchase Authorization Increases to $250 Million

BLOOMFIELD HILLS, Mich., July 28, 2021 /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 second quarter and six months 2021 results. For the three months ended June 30, 2021, the company reported a 652.9% increase in income from continuing operations attributable to common shareholders to $338.8 million and a 650.0% increase in related earnings per share to $4.20. This compares to income from continuing operations attributable to common shareholders of $45.0 million, or $0.56 per share, in the prior year. Second quarter income from continuing operations and related earnings per share include charges of $21.4 million, consisting of $12.6 million of debt redemption costs ($0.16 per share) and $8.8 million of charges relating to the increase in U.K. corporate taxes in 2023 ($0.11 per share). Excluding these items, adjusted income from continuing operations increased 700.4% to $360.2 million, and related earnings per share increased 698.2% to $4.47. Foreign exchange positively impacted earnings per share by $0.11.

Second Quarter 2021 Operational Highlights versus Second Quarter 2020

  • Same-Store New and Used Retail Automotive Unit Sales - increased 81.7%

  • Total Revenue - increased 91.4% to $7.0 billion from $3.7 billion

  • Same-Store Retail Automotive Revenue - increased 97.5%

  • Same-Store Retail Automotive Gross Profit - increased 123.9%

  • Retail Automotive Variable Gross Profit Per Unit - increased 45.8% to $5,155

  • Same-Store Retail Automotive Service & Parts Gross Profit - increased 68.7%, including a 320 bps increase in gross margin

  • Retail Commercial Truck Dealership Earnings Before Taxes – increased 172.1%

Second Quarter 2021 Operational Highlights versus Second Quarter 2019

  • Same-Store New and Used Retail Automotive Unit Sales - increased 6.1%

  • Total Revenue - increased 21.3% to $7.0 billion from $5.8 billion

  • Same-Store Retail Automotive Revenue - increased 23.4%

  • Same-Store Retail Automotive Gross Profit - increased 35.0%

  • Retail Automotive Variable Gross Profit Per Unit - increased 48.4% to $5,155

  • Same-Store Retail Automotive Service & Parts Gross Profit - increased 5.5%, including a 190 bps increase in gross margin

  • Retail Commercial Truck Dealership Earnings Before Taxes – increased 109.8%

  • Income from Continuing Operations - increased 187.9% to $338.8 million when compared to $117.7 million. Related earnings per share increased 195.8% to $4.20 when compared to $1.42

Commenting on the company's results, Chair and CEO Roger Penske said, "Our business produced an all-time record second quarter driven by strength across all areas of our business. Strong volume and vehicle margins, improving service and parts operations, a growing Class 8 commercial truck market, record performance at Penske Transportation Solutions, and continuing cost controls all contributed to the record performance. I am particularly pleased with the continued expense discipline driving a 1,860-basis point improvement in selling, general, and administrative expense as a percent of gross profit." Penske continued, "Despite the ongoing disruption to new vehicle supply, our performance in the quarter demonstrates the strength of the auto and commercial truck retail model and the benefit from our diversification."

For the six months ended June 30, 2021, the company reported a 439.6% increase in income from continuing operations attributable to common shareholders to $521.3 million and a 438.3% increase in related earnings per share to $6.46. This compares to income from continuing operations attributable to common shareholders of $96.6 million, or $1.20 per share, in the prior year. Excluding the charges noted above, adjusted income from continuing operations increased 461.8% to $542.7 million, and related earnings per share increased 460.8% to $6.73. Foreign exchange positively impacted earnings per share by $0.16. Total revenue increased 47.4% to $12.8 billion from $8.7 billion in the same period last year.

CarShop Used Vehicle SuperCenters
Penske Automotive Group operates nineteen CarShop Used Vehicle SuperCenters in the U.S. and U.K. The CarShop SuperCenters experienced significant improvement in the second quarter principally due to the reopening of the U.K.-based showrooms from COVID-19 restrictions beginning in April. For the three months ended June 30, 2021, retail unit sales increased by 184.0% to 18,742 while revenue increased by 207.9% to $408.2 million. For the six months ended June 30, 2021, retail unit sales increased by 31.5% to 30,137 while revenue increased by 48.6% to $650.8 million.

Retail Commercial Truck Dealerships
For the three months ended June 30, 2021, earnings before taxes increased 172.1% to $39.7 million compared to $14.6 million in the same period last year, return on sales was 6.3%, and fixed cost absorption was 133.0%. For the six months ended June 30, 2021, earnings before taxes increased 137.4% to $67.2 million compared to $28.3 million in the same period last year and return on sales was 6.3%. The increase in earnings before taxes was principally driven by a 34.3% same-store increase in new trucks sales and an increase in new and used truck gross margin, coupled with an 18.0% increase in same-store service and parts gross profit.

On April 13, 2021, the company announced that it had completed its acquisition of Kansas City Freightliner ("KCFL"), which is expected to add approximately $450 million in annualized revenue. PTG now operates 35 locations throughout the U.S. and Canada which provide services such as new and used truck sales, parts and service, and collision repair.

Penske Transportation Solutions Investment
Penske Transportation Solutions ("PTS") is a leading provider of full-service truck leasing, truck rental, contract maintenance, and logistics services. 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 and six months ended June 30, 2021, the company recorded $102.5 million and $156.2 million in earnings compared to $29.9 million and $43.5 million for the same period last year. The increase was principally driven by a strong North American Class 8 truck market and increased demand for the company's full-service leasing, rental, and logistics services, coupled with improved efficiency and a reduction in operating expenses which drove a 15.4% return on sales for PTS during the second quarter 2021.

Corporate Development and Liquidity
As mentioned above, we acquired "KCFL" in April 2021, which we expect to add $450 million in annualized revenue. In addition, in June 2021, we acquired Mercedes-Benz of South Charlotte, which is expected to add $150 million in annualized revenues. We are also constructing an Audi dealership in Southern California and a Honda dealership in Texas, both of which are expected to open either in late 2021 or early in 2022 and collectively generate approximately $100 million in annualized revenue.

During the second quarter, we opened one CarShop Used Vehicle SuperCenter in the U.S. and one CarShop Used Vehicle SuperCenter in the U.K. We also expect to open an additional four locations by the end of 2021. We are targeting 40 locations, 150,000 in unit sales, and $100 million of earnings before taxes in the CarShop Used Vehicle SuperCenter operations by the end of 2023.

During the second quarter of 2021, we issued $500 million in aggregate principal amount of 3.75% senior subordinated notes due 2029, the proceeds of which were used to redeem our $500 million in aggregate principal amount of 5.50% senior subordinated notes due 2026 on June 24, 2021. The redemption resulted in $12.6 million in debt redemption costs noted above.

As of June 30, 2021, the company had available liquidity under its various credit agreements of approximately $1.1 billion.

Dividend and Share Repurchases
On July 21, 2021, we announced an increase in the quarterly dividend to $0.45 per share payable on September 1, 2021, to shareholders of record as of August 10, 2021.

During the six months ended June 30, 2021, we repurchased 495,307 shares of our outstanding common stock for $40.9 million, or an average of $82.63 per share. At the end of the second quarter, we had $142.5 million available under our securities repurchase program approved by our Board of Directors. In July 2021, our Board of Directors increased the share repurchase authority to $250 million.

Conference Call
Penske Automotive Group will host a conference call discussing financial results relating to the second quarter of 2021 on Wednesday, July 28, 2021, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (866) 996-5381 [International, please dial (602) 585-9891] using access code 9670988. The call will also be simultaneously broadcast over the Internet through the Investors section of the Penske Automotive Group website. Additionally, an investor presentation relating to the second quarter 2021 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 a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers. PAG operates dealerships principally in the United States, the United Kingdom, Canada, Germany, and Italy and is the largest retailer 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. Additionally, PAG owns 28.9% of Penske Transportation Solutions, a business that manages a fleet of over 330,000 vehicles providing innovative transportation, supply chain, and technology solutions to North American fleets. PAG is a member of the Fortune 500, Russell 1000, and Russell 3000 indexes 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 adjusted income from continuing operations, adjusted earnings per share, earnings before interest, taxes, depreciation, and amortization ("EBITDA"), and adjusted earnings before interest, taxes, depreciation, and amortization. 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. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others, the duration, severity, and resolution of the COVID-19 pandemic, government mandated restrictions on our business in light of COVID-19 or otherwise, economic conditions generally, conditions in the credit markets, changes in interest rates and foreign currency exchange rates, changes in tariff rates, new rules in place after the recent Brexit accord between the European Union and the U.K. could slow parts originating in the U.K. or Europe for distribution to our dealerships, adverse conditions affecting a particular manufacturer, including the adverse impact to the vehicle and parts supply chain due to limited vehicle availability due to the COVID-19 pandemic, the shortage of automotive semiconductor chips or other components, 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, 2020, 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.

Inquiries should contact:



Shelley Hulgrave

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.

248-648-2812

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



Six Months Ended



June 30,



June 30,



2021


2020


Change



2021


2020


Change

Revenue


$

6,987.5


$

3,651.1


91.4

%



$

12,761.3


$

8,660.2


47.4

%

Cost of Sales



5,804.8



3,098.2


87.4

%




10,665.4



7,330.6


45.5

%

Gross Profit


$

1,182.7


$

552.9


113.9

%



$

2,095.9


$

1,329.6


57.6

%

SG&A Expenses



749.8



453.6


65.3

%




1,414.1



1,095.4


29.1

%

Depreciation



30.2



27.9


8.2

%




59.5



56.4


5.5

%

Operating Income


$

402.7


$

71.4


464.0

%



$

622.3


$

177.8


250.0

%

Floor Plan Interest Expense



(7.9)



(11.7)


(32.5)

%




(17.4)



(29.4)


(40.8)

%

Other Interest Expense



(19.7)



(28.4)


(30.6)

%




(37.6)



(60.1)


(37.4)

%

Debt Redemption Costs



(17.0)




nm

%




(17.0)




nm

%

Equity in Earnings of Affiliates



105.6



29.9


253.2

%




161.0



44.4


262.6

%

Income from Continuing Operations Before Income Taxes


$

463.7


$

61.2


657.7

%



$

711.3


$

132.7


436.0

%

Income Taxes



(123.4)



(16.5)


647.9

%




(187.9)



(36.6)


413.4

%

Income from Continuing Operations


$

340.3


$

44.7


661.3

%



$

523.4


$

96.1


444.6

%

Income from Discontinued Operations, net of tax



0.1



0.1


nm





0.1



0.2


nm


Net Income


$

340.4


$

44.8


659.8

%



$

523.5


$

96.3


443.6

%

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



1.5



(0.3)


nm





2.1



(0.5)


nm


Net Income Attributable to Common Shareholders


$

338.9


$

45.1


651.4

%



$

521.4


$

96.8


438.6

%





















Amounts Attributable to Common Shareholders:




















Reported Income from Continuing Operations


$

340.3


$

44.7


661.3

%



$

523.4


$

96.1


444.6

%

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



1.5



(0.3)


nm





2.1



(0.5)


nm


Income from Continuing Operations, net of tax


$

338.8


$

45.0


652.9

%



$

521.3


$

96.6


439.6

%

Income from Discontinued Operations, net of tax



0.1



0.1


nm





0.1



0.2


nm


Net Income Attributable to Common Shareholders


$

338.9


$

45.1


651.4

%



$

521.4


$

96.8


438.6

%

Income from Continuing Operations Per Share


$

4.20


$

0.56


650.0

%



$

6.46


$

1.20


438.3

%

Income Per Share


$

4.20


$

0.56


650.0

%



$

6.46


$

1.20


438.3

%

Weighted Average Shares Outstanding



80.7



80.5


0.2

%




80.7



80.8


(0.1)

%





















nm – not meaningful




















PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Condensed Balance Sheets

(Amounts In Millions)

(Unaudited)




June 30,


December 31,



2021


2020

Assets:







Cash and Cash Equivalents


$

165.2


$

49.5

Accounts Receivable, Net



913.3



806.9

Inventories



2,936.9



3,425.6

Other Current Assets



126.9



126.8

Total Current Assets



4,142.3



4,408.8

Property and Equipment, Net



2,410.0



2,404.4

Operating Lease Right-of-Use Assets



2,444.9



2,416.5

Intangibles



2,676.5



2,491.8

Other Long-Term Assets



1,633.1



1,525.7

Total Assets


$

13,306.8


$

13,247.2








Liabilities and Equity:







Floor Plan Notes Payable


$

1,383.7


$

1,780.5

Floor Plan Notes Payable – Non-Trade



1,182.0



1,363.8

Accounts Payable



838.0



675.4

Accrued Expenses and Other Current Liabilities



916.8



767.2

Current Portion Long-Term Debt



81.5



87.5

Liabilities Held for Sale



0.5



0.5

Total Current Liabilities



4,402.5



4,674.9

Long-Term Debt



1,436.3



1,602.1

Long-Term Operating Lease Liabilities



2,375.5



2,350.3

Other Long-Term Liabilities



1,329.8



1,293.8

Total Liabilities



9,544.1



9,921.1

Equity



3,762.7



3,326.1

Total Liabilities and Equity


$

13,306.8


$

13,247.2

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Operations

Selected Data

(Unaudited)





Three Months Ended


Six Months Ended




June 30,


June 30,




2021


2020


2021


2020


Geographic Revenue Mix:














North America



60.7

%


67.2

%


60.2

%


62.3

%

U.K.



31.4

%


22.9

%


31.7

%


28.9

%

Other International



7.9

%


9.9

%


8.1

%


8.8

%

Total



100.0

%


100.0

%


100.0

%


100.0

%















Revenue: (Amounts in Millions)














Retail Automotive


$

6,197.6


$

3,153.5


$

11,404.5


$

7,570.1


Retail Commercial Trucks



625.3



399.2



1,060.0



890.6


Commercial Vehicles Australia/Power Systems



164.6



98.4



296.8



199.5


Total


$

6,987.5


$

3,651.1


$

12,761.3


$

8,660.2
















Gross Profit: (Amounts in Millions)














Retail Automotive


$

1,040.4


$

466.3


$

1,840.3


$

1,144.4


Retail Commercial Trucks



102.7



60.2



182.7



129.0


Commercial Vehicles Australia/Power Systems



39.6



26.4



72.9



56.2


Total


$

1,182.7


$

552.9


$

2,095.9


$

1,329.6
















Gross Margin:














Retail Automotive



16.8

%


14.8

%


16.1

%


15.1

%

Retail Commercial Trucks



16.4

%


15.1

%


17.2

%


14.5

%

Commercial Vehicles Australia/Power Systems



24.1

%


26.8

%


24.6

%


28.2

%

Total



16.9

%


15.1

%


16.4

%


15.4

%



Three Months Ended


Six Months Ended



June 30,


June 30,














2021


2020



2021


2020


Operating Items as a Percentage of Revenue:











Gross Profit


16.9

%

15.1

%


16.4

%

15.4

%

Selling, General and Administrative Expenses


10.7

%

12.4

%


11.1

%

12.6

%

Operating Income


5.8

%

2.0

%


4.9

%

2.1

%

Income from Continuing Operations Before Income Taxes


6.6

%

1.7

%


5.6

%

1.5

%












Operating Items as a Percentage of Total Gross Profit:











Selling, General and Administrative Expenses


63.4

%

82.0

%


67.5

%

82.4

%

Operating Income


34.0

%

12.9

%


29.7

%

13.4

%



Three Months Ended


Six Months Ended



June 30,


June 30,
















(Amounts in Millions)


2021


2020



2021


2020

















EBITDA (1)


$

513.6


$

117.5



$

808.4


$

249.2


Floorplan Credits


$

14.9


$

8.4



$

27.2


$

17.0


Rent Expense


$

59.5


$

56.5



$

118.4


$

114.4



(1)

See the following Non-GAAP reconciliation table.

PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations

(Unaudited)




Three Months Ended



Six Months Ended



June 30,



June 30,



2021


2020


Change



2021


2020


Change

Retail Automotive Units:




















New Retail



57,789



30,687


88.3

%




108,198



73,874


46.5

%

Used Retail



74,708



42,606


75.3

%




135,151



105,656


27.9

%

Total



132,497



73,293


80.8

%




243,349



179,530


35.5

%





















Retail Automotive Revenue: (Amounts in Millions)




















New Vehicles


$

2,811.3


$

1,384.7


103.0

%



$

5,232.7


$

3,249.2


61.0

%

Used Vehicles



2,327.6



1,166.0


99.6

%




4,135.6



2,785.6


48.5

%

Finance and Insurance, Net



212.3



97.1


118.6

%




381.1



241.5


57.8

%

Service and Parts



546.2



345.2


58.2

%




1,049.4



858.5


22.2

%

Fleet and Wholesale



300.2



160.5


87.0

%




605.7



435.3


39.1

%

Total Revenue


$

6,197.6


$

3,153.5


96.5

%



$

11,404.5


$

7,570.1


50.7

%





















Retail Automotive Gross Profit: (Amounts in Millions)




















New Vehicles


$

276.6


$

106.2


160.5

%



$

481.6


$

244.8


96.7

%

Used Vehicles



194.1



55.8


247.8

%




303.5



141.7


114.2

%

Finance and Insurance, Net



212.3



97.1


118.6

%




381.1



241.5


57.8

%

Service and Parts



337.0



201.2


67.5

%




642.4



504.9


27.2

%

Fleet and Wholesale



20.4



6.0


240.0

%




31.7



11.5


175.7

%

Total Gross Profit


$

1,040.4


$

466.3


123.1

%



$

1,840.3


$

1,144.4


60.8

%





















Retail Automotive Revenue Per Vehicle Retailed:




















New Vehicles


$

48,648


$

45,124


7.8

%



$

48,363


$

43,983


10.0

%

Used Vehicles



31,156



27,368


13.8

%




30,599



26,365


16.1

%





















Retail Automotive Gross Profit Per Vehicle Retailed:




















New Vehicles


$

4,786


$

3,462


38.2

%



$

4,451


$

3,315


34.3

%

Used Vehicles



2,598



1,310


98.3

%




2,246



1,341


67.5

%

Finance and Insurance



1,603



1,324


21.1

%




1,566



1,345


16.4

%





















Retail Automotive Gross Margin:




















New Vehicles



9.8

%


7.7

%

+210

bps




9.2

%


7.5

%

+170

bps

Used Vehicles



8.3

%


4.8

%

+350

bps




7.3

%


5.1

%

+220

bps

Service and Parts



61.7

%


58.3

%

+340

bps




61.2

%


58.8

%

+240

bps

Fleet and Wholesale



6.8

%


3.7

%

+310

bps




5.2

%


2.6

%

+260

bps

Total Gross Margin



16.8

%


14.8

%

+200

bps




16.1

%


15.1

%

+100

bps





















Retail Automotive Revenue Mix Percentages:




















New Vehicles



45.4

%


43.9

%

+150

bps




45.9

%


42.9

%

+300

bps

Used Vehicles



37.6

%


37.0

%

+60

bps




36.3

%


36.8

%

(50)

bps

Finance and Insurance, Net



3.4

%


3.1

%

+30

bps




3.3

%


3.2

%

+10

bps

Service and Parts



8.8

%


10.9

%

(210)

bps




9.2

%


11.3

%

(210)

bps

Fleet and Wholesale



4.8

%


5.1

%

(30)

bps




5.3

%


5.8

%

(50)

bps

Total



100.0

%


100.0

%






100.0

%


100.0

%























Retail Automotive Gross Profit Mix Percentages:




















New Vehicles



26.6

%


22.8

%

+380

bps




26.2

%


21.4

%

+480

bps

Used Vehicles



18.7

%


12.0

%

+670

bps




16.5

%


12.4

%

+410

bps

Finance and Insurance, Net



20.4

%


20.8

%

(40)

bps




20.7

%


21.1

%

(40)

bps

Service and Parts



32.4

%


43.1

%

(1,070)

bps




34.9

%


44.1

%

(920)

bps

Fleet and Wholesale



1.9

%


1.3

%

+60

bps




1.7

%


1.0

%

+70

bps

Total



100.0

%


100.0

%






100.0

%


100.0

%



PENSKE AUTOMOTIVE GROUP, INC.

Retail Automotive Operations Same-Store

(Unaudited)




Three Months Ended



Six Months Ended



June 30,



June 30,



2021


2020


Change



2021


2020


Change

Retail Automotive Same-Store Units:




















New Retail



57,622



30,088


91.5

%




107,944



72,463


49.0

%

Used Retail



73,270



41,952


74.7

%




133,085



104,004


28.0

%

Total



130,892



72,040


81.7

%




241,029



176,467


36.6

%





















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




















New Vehicles


$

2,797.2


$

1,365.3


104.9

%



$

5,212.0


$

3,202.9


62.7

%

Used Vehicles



2,295.6



1,151.3


99.4

%




4,090.6



2,748.2


48.8

%

Finance and Insurance, Net



209.9



95.8


119.1

%




377.7



238.2


58.6

%

Service and Parts



543.5



340.0


59.9

%




1,045.7



844.3


23.9

%

Fleet and Wholesale



298.6



159.0


87.8

%




602.3



425.2


41.7

%

Total Revenue


$

6,144.8


$

3,111.4


97.5

%



$

11,328.3


$

7,458.8


51.9

%





















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




















New Vehicles


$

274.9


$

105.3


161.1

%



$

479.3


$

242.4


97.7

%

Used Vehicles



191.8



55.5


245.6

%




300.7



140.2


114.5

%

Finance and Insurance, Net



209.9



95.8


119.1

%




377.7



238.2


58.6

%

Service and Parts



334.8



198.5


68.7

%




639.3



497.1


28.6

%

Fleet and Wholesale



20.4



5.8


251.7

%




31.7



11.2


183.0

%

Total Gross Profit


$

1,031.8


$

460.9


123.9

%



$

1,828.7


$

1,129.1


62.0

%





















Retail Automotive Same-Store Revenue Per Vehicle Retailed:




















New Vehicles


$

48,544


$

45,378


7.0

%



$

48,285


$

44,201


9.2

%

Used Vehicles



31,330



27,444


14.2

%




30,737



26,424


16.3

%





















Retail Automotive Same-Store Gross Profit Per Vehicle Retailed:




















New Vehicles


$

4,770


$

3,499


36.3

%



$

4,440


$

3,345


32.7

%

Used Vehicles



2,618



1,322


98.0

%




2,260



1,348


67.7

%

Finance and Insurance



1,604



1,330


20.6

%




1,567



1,350


16.1

%





















Retail Automotive Same-Store Gross Margin:




















New Vehicles



9.8

%


7.7

%

+210

bps




9.2

%


7.6

%

+160

bps

Used Vehicles



8.4

%


4.8

%

+360

bps




7.4

%


5.1

%

+230

bps

Service and Parts



61.6

%


58.4

%

+320

bps




61.1

%


58.9

%

+220

bps

Fleet and Wholesale



6.8

%


3.6

%

+320

bps




5.3

%


2.6

%

+270

bps

Total Gross Margin



16.8

%


14.8

%

+200

bps




16.1

%


15.1

%

+100

bps





















Retail Automotive Revenue Mix Percentages:




















New Vehicles



45.5

%


43.9

%

+160

bps




46.0

%


42.9

%

+310

bps

Used Vehicles



37.4

%


37.0

%

+40

bps




36.1

%


36.8

%

(70)

bps

Finance and Insurance, Net



3.4

%


3.1

%

+30

bps




3.3

%


3.2

%

+10

bps

Service and Parts



8.8

%


10.9

%

(210)

bps




9.2

%


11.3

%

(210)

bps

Fleet and Wholesale



4.9

%


5.1

%

(20)

bps




5.4

%


5.8

%

(40)

bps

Total



100.0

%


100.0

%






100.0

%


100.0

%























Retail Automotive Gross Profit Mix Percentages:




















New Vehicles



26.6

%


22.8

%

+380

bps




26.2

%


21.5

%

+470

bps

Used Vehicles



18.6

%


12.0

%

+660

bps




16.4

%


12.4

%

+400

bps

Finance and Insurance, Net



20.3

%


20.8

%

(50)

bps




20.7

%


21.1

%

(40)

bps

Service and Parts



32.4

%


43.1

%

(1,070)

bps




35.0

%


44.0

%

(900)

bps

Fleet and Wholesale



2.1

%


1.3

%

+80

bps




1.7

%


1.0

%

+70

bps

Total



100.0

%


100.0

%






100.0

%


100.0

%



PENSKE AUTOMOTIVE GROUP, INC.

Retail Commercial Truck Operations

(Unaudited)




Three Months Ended



Six Months Ended



June 30,



June 30,



2021


2020


Change



2021


2020


Change

Retail Commercial Truck Units:




















New Retail



3,314



2,063


60.6

%




5,479



4,874


12.4

%

Used Retail



832



773


7.6

%




1,673



1,471


13.7

%

Total



4,146



2,836


46.2

%




7,152



6,345


12.7

%





















Retail Commercial Truck Revenue: (Amounts in Millions)




















New Vehicles


$

399.2


$

235.5


69.5

%



$

646.7


$

553.8


16.8

%

Used Vehicles



59.0



36.9


59.9

%




110.0



71.5


53.8

%

Finance and Insurance, Net



3.8



3.2


18.8

%




6.9



6.4


7.8

%

Service and Parts



157.3



111.6


40.9

%




281.9



236.0


19.4

%

Wholesale and Other



6.0



12.0


(50.0)

%




14.5



22.9


(36.7)

%

Total Revenue


$

625.3


$

399.2


56.6

%



$

1,060.0


$

890.6


19.0

%





















Retail Commercial Truck Gross Profit: (Amounts in Millions)




















New Vehicles


$

19.6


$

9.6


104.2

%



$

33.8


$

22.1


52.9

%

Used Vehicles



9.5



(2.9)


427.6

%




15.9



(5.3)


400.0

%

Finance and Insurance, Net



3.8



3.2


18.8

%




6.9



6.4


7.8

%

Service and Parts



66.3



49.2


34.8

%




119.0



102.5


16.1

%

Wholesale and Other



3.5



1.1


218.2

%




7.1



3.3


115.2

%

Total Gross Profit


$

102.7


$

60.2


70.6

%



$

182.7


$

129.0


41.6

%





















Retail Commercial Truck Revenue Per Vehicle Retailed:




















New Vehicles