BLOOMFIELD HILLS, Mich., April 24, 2014 /PRNewswire/ --
Revenue Increases 20.9% to $4.0 Billion
Same-store Retail Revenue Increases 14.9%
Income from Continuing Operations Increases 15.4% to $66.1 Million
EPS from Continuing Operations Rises 15.9% to $0.73 per Share
EBITDA Increases 16.6% to $130.2 Million
Penske Automotive Group, Inc. (NYSE: PAG), an international transportation services company, announced today record first quarter 2014 performance, including the highest quarterly income from continuing operations in the history of the company. For the first quarter, income from continuing operations attributable to common shareholders increased 15.4% to $66.1 million and related earnings per share increased 15.9% to $0.73 per share when compared to the same period last year.
Total revenue increased 20.9% to $4.0 billion. The revenue increase was driven by a 13.1% increase in total retail unit sales, including a 9.9% increase on a same-store basis. Gross profit improved 18.5% to $624.0 million while operating income increased 13.8% to $119.7 million.
Chairman Roger S. Penske said, "Penske Automotive Group delivered another solid quarter, achieving double-digit growth in unit volume, revenue, operating income, net income and earnings per share. Despite the challenging weather conditions experienced in the northeast and central United States, the company's performance in the first quarter displays the benefit of our brand mix and the geographical diversification of our revenue base. Our automotive dealership business generated a 14.9% increase in same-store retail revenue, including 7.5% in the U.S. and 28.2% internationally."
Highlights of the First Quarter
Total Retail Unit Sales increased 13.1% to 95,658
+9.4% in the United States; +21.0% Internationally
New unit retail sales +11.6%
Used unit retail sales +14.8%
Same-store Retail Revenue increased +14.9%
New +14.2%; Used +18.7%; Finance & Insurance +18.6%; Service and Parts +7.3%
+7.5% in the United States; +28.2% Internationally
Average Transaction Price Per Unit
New $40,294; +5.8%
Used $26,484; +5.9%
Average Gross Profit Per Unit
New $3,116, +$150/unit; Gross Margin 7.7%, -10 basis points
Used $1,918, -$39/unit; Gross Margin 7.2%, -60 basis points
Finance & Insurance $1,097, +$82/unit
Penske Automotive will host a conference call discussing financial results relating to the first quarter of 2014 on April 24, 2014, at 2:00 p.m.Eastern Daylight Time. To listen to the conference call, participants must dial (800) 230-1085 [International, please dial (612) 288-0329]. The call will also be simultaneously broadcast over the Internet through the Investors Relations section of the Penske Automotive Group website. Additionally, an investor presentation relating to the first quarter 2014 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, operating automotive dealerships, commercial vehicle distribution and car rental franchises principally in the United States, Western Europe, Australia and New Zealand, employs approximately 18,000 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 income from continuing operations, 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 and potential earnings outlook. 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, 2013, 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.