Penske Reports 19.2 Percent Revenue Increase
Penske Automotive Group reports record second-quarter income from continuing operations and earnings per share.
BLOOMFIELD HILLS, Mich. — Penske Automotive Group, Inc., an international automotive retailer, announced record second-quarter income from continuing operations and related earnings per share.
For the second quarter 2012, income from continuing operations attributable to common shareholders increased 26.4 percent to $49.5 million. Related earnings per share increased 31 percent to $0.55 per share. This compares to income from continuing operations attributable to common shareholders of $39.2 million, or $0.42 per share in the same period last year.
Second Quarter 2012 | First Half 2012 | |||
Revenue increases 19.2 percent to $3.4 Billion | Revenue increases 18.6 percent to $6.6 billion | |||
Same-store retail revenue increases 9.4 percent | Same-store retail revenue Increases 8.5 percent | |||
Inc. from continuing operations increases 26.4 percent to $49.5 million | Inc. from continuing operations increases 32.0 percent to $99.5 million | |||
EPS from continuing operations increases 31.0 percent to $0.55 per share | EPS from continuing operations increases 34.1 percent to $1.10 per share | |||
EBITDA increases 23.7 percent to $102.1 million | EBITDA increases 28.6 percent to $204.7 million |
Total revenue increased by 19.2 percent to $3.4 billion and was driven by an increase in total retail unit sales of 20.9 percent. The increase in retail unit sales was highlighted by a 24.8 percent increase in new unit sales and a 16.4 percent increase in used retail unit sales.
Total same-store retail unit sales increased 12 percent in the second quarter, while same-store retail revenue increased 9.4 percent. Gross profit improved 12.6 percent to $513.4 million, operating income increased 29.5 percent to $90.3 million, and operating margin improved by 20 basis points.
The average transaction price per new unit fell 1 percent to $36,975, while used transaction prices fell by 3.1 percent to $25,666. Average gross profit per new vehicle retailed came in at $2,969, with gross margin dropping 50 bps to 8.0 percent. Gross margin for new fell 60 bps to 7.7 percent, with average gross profit per used vehicle retailed coming in at $1,972.
F&I profit per vehicle retailed dropped $9 to $980.
“The company’s second-quarter results reflect strong performance across both the U.S. and International markets. We experienced strong unit sales throughout the quarter, particularly through our Toyota, Honda and Lexus dealerships, and we increased our service and parts gross margin by 130 basis points to 58.6 percent,” said Chairman Roger Penske. “Further, I was particularly pleased that we were able to drive a 230 basis point improvement in selling, general and administrative expenses as a percent of gross profit.”
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