THIRD QUARTER 2023 FINANCIAL RESULTS
October 2023
FORWARD-LOOKING STATEMENT DISCLAIMER
Statements in this press release may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.'s financial performance and future plans. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others, those related to macro-economic,geo-political and industry conditions and events, including their impact on new and used vehicle sales, the availability of consumer credit, changes in consumer demand, consumer confidence levels, fuel prices, personal discretionary spending levels, interest rates, and unemployment rates; our ability to obtain vehicles and parts from our manufacturers, especially in light of supply chain disruptions due to natural disasters, the shortage of vehicle components, the war in Ukraine, challenges in sourcing labor, or labor strikes or work stoppages, or other disruptions; changes in the retail model either from direct sales by manufacturers, a transition to an agency model of sales, sales by online competitors, or from the expansion of electric vehicles; the effects of a pandemic on the global economy, including our ability to react effectively to changing business conditions in light of any pandemic; the rate of inflation, including its impact on vehicle affordability; changes in interest rates and foreign currency exchange rates; our ability to consummate, integrate and realize returns on our acquisitions; with respect to PTS, changes in the financial health of its customers, labor strikes or work stoppages by its employees, a reduction in PTS' asset utilization rates, continued availability from truck manufacturers and suppliers of vehicles and parts for its fleet, potential decreases in the resale value of used vehicles which may affect PTS' ability to sell its used vehicles after the expiration of its customers' leases or at the end of its holding period for rental vehicles, which may affect PTS' profitability and regulatory risks and related compliance costs; our ability to realize returns on our significant investments in new and upgraded dealership facilities; our ability to navigate a rapidly changing automotive and truck landscape; our ability to respond to new or enhanced regulations in both our domestic and international markets relating to automotive and commercial truck dealerships and vehicles sales, including those related to the sales process or emissions standards, as well as changes in consumer sentiment relating to commercial truck sales that may hinder our or PTS' ability to maintain, acquire, sell, or operate trucks; the success of our distribution of commercial vehicles, engines, and power systems; natural disasters; recall initiatives or other disruptions that interrupt the supply of vehicles or parts to us; 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, risks, and other uncertainties, which could affect Penske Automotive Group's future performance. The risks and uncertainties discussed above are not exhaustive and additional risk and uncertainties are addressed in Penske Automotive Group's Form 10-K for the year ended December 31, 2022, its Form 10- Q for the quarterly periods ended March 31, 2023, and June 30, 2023, and its other filings with the Securities and Exchange Commission. This press release speaks only as of its date, and Penske Automotive Group disclaims any duty to update the information herein.
PENSKE AUTOMOTIVE GROUP / 2
COMPANY OVERVIEW
A Diversified Transportation
Services Company
Headquartered in
Bloomfield Hills, MI USA
As of September 30, 2023:
28,000+ | $22.3B | |
Employees worldwide | 9M YTD | |
revenue | ||
336 | 4 | 9 |
Retail automotive | Continents | Countries |
franchised dealerships
PENSKE AUTOMOTIVE GROUP / 3
Markets in
North America
147 7 44
Automotive CarShop Commercial
franchised used vehicle truck
dealerships locations locations
Markets Outside of North America
189 13
Automotive CarShop franchised used vehicle dealerships locations
RETAIL AUTOMOTIVE BRAND MIX
71% | 20% | 1% | 8% | |||||||||
Premium | Volume Non-U.S. | U.S. | CarShop | |||||||||
25% | (YTD as of September 30, 2023) | |||||||||||
(% of Total Worldwide Automotive Dealership Revenue) | ||||||||||||
11% | 10% | 9% | ||||||||||
8% | 8% | 8% | ||||||||||
7% | ||||||||||||
4% | 3% | 3% | 2% | |||||||||
1% | 1% | |||||||||||
Other |
PENSKE AUTOMOTIVE GROUP / 4
CAPITAL ALLOCATION HISTORY
2018 | 2019 | 2020 | 2021 | 2022 |
(In Millions) | |||||
Dividends | $121 | $131 | $68 | $143 | $154 |
Cap Ex | $306 | $245 | $186 | $249 | $283 |
Share Repurchases | $75 | $174 | $35 | $294 | $887 |
Acquisitions | $309 | $327 | --- | $432 | $393 |
PENSKE AUTOMOTIVE GROUP / 5
SHARES OUTSTANDING
(Outstanding shares as of 12/31 each year) (In Thousands)
84,546 | 8,214 | |
80,000 | ||
81,084 | 80,392 | |
60,000 | 77,574 | |
3,987 | 69,681 | |
40,000 | ||
67,217 | ||
3,262 | ||
20,000 | 2,691 |
1,587
1,026
0
2018 | 2019 | 2020 | 2021 | 2022 | Sept. 2023 | ||
Outstanding | Repurchased | ||||||
PENSKE AUTOMOTIVE GROUP / 6
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
HISTORICAL LONG-TERM DEBT AND LEVERAGE
(USD in Millions)
$2,500 | $2,360 |
$2,000 | ||||||||||||||||||||
2.9x | $1,690 | $1,474 | $1,622 | $1,707 | ||||||||||||||||
$1,500 | ||||||||||||||||||||
$1,000 | 1.8x | |||||||||||||||||||
$500 | 1.0x | |||||||||||||||||||
0.8x | 0.8x | |||||||||||||||||||
$- | ||||||||||||||||||||
2019 | 2020 | 2021 | 2022 | Sept '23 | ||||||||||||||||
Debt | Leverage* | |||||||||||||||||||
*Refer to non-gaap reconciliation schedules on pages 36-38
PENSKE AUTOMOTIVE GROUP / 7
3.5
3
2.5
2
1.5
1
0.5
0
Q3 2023 &
9M 2023 REVIEW
PAG Q3 and 9M YTD PERFORMANCE SUMMARY
Q3 Total Revenue ($ in Billions)
Q3 Income ($ in Millions)
Q3 EPS
$6.5 $6.9
$7.4
$355 $340
$263
$4.46 $4.61
$3.92
Q3 '21 | Q3 '22 | Q3 '23 |
9M Total Revenue ($ in Billions)
Q3 '21 | Q3 '22 | Q3 '23 |
9M Income ($ in Millions)
Q3 '21 | Q3 '22 | Q3 '23 |
9M EPS
$19.3
$20.8
$22.3
$1,082
$877$863
$10.91 $14.31 $12.64
9M '21 | 9M '22 | 9M '23 |
9M '21 | 9M '22 | 9M '23 |
9M '21 | 9M '22 | 9M '23 |
PENSKE AUTOMOTIVE GROUP / 9
Q3 KEY HIGHLIGHTS
Retail Automotive (Q3'23 vs Q3 '22)
- Total same-store units delivered (including Agency) increased 10% to 119,921
- Same-storeretail automotive revenue performance
Reported | |
New Vehicle | +15% |
Used Vehicle | +4% |
F & I | -- |
Service/Parts | +9% |
Fleet/Wholesale | +7% |
Total | +9% |
- Same-storevariable vehicle gross profit (excl. agency) of $5,180 down $628/unit, or 11%
Note: Refer to page 39 for an overview of the Agency model
PENSKE AUTOMOTIVE GROUP / 10
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Penske Automotive Group Inc. published this content on 25 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 October 2023 19:02:44 UTC.