Penske automotive reports record results
Bloomfield hills, mich.--(business wire)--penske automotive group, inc. (nyse:pag), an international automotive retailer, announced today the highest income and earnings per share in company history. for the first quarter 2013, income from continuing operations attributable to common shareholders increased 13.9% to $56.9 million and related earnings per share increased 14.5% to $0.63 per share. this compares to income from continuing operations attributable to common shareholders of $49.9 million, or $0.55 per share in the same period last year. first quarter 2013 revenue was $3.4 billion, compared to $3.2 billion in the same period last year, an increase of 7.7%. on a same-store basis, retail revenue increased 7.4%. the revenue growth was driven by strong performance across each business area including a 9.9% increase in total retail unit sales and 6.8% on a same-store basis. gross profit improved 7.9% to $533.0 million while overall gross margin increased 10 basis points. operating income increased 11.7% to $105.2 million. highlights of the first quarter total retail unit sales increased 9.9% to 85,821 +12.7% in the united states; +4.5% internationally new unit retail sales +9.7% used unit retail sales +10.2% +12.7% in the united states; +4.5% internationally new unit retail sales +9.7% used unit retail sales +10.2% same-store retail revenue increased 7.4% new +10.1%; used +4.5%; finance & insurance +9.9%; service and parts +3.1% +11.5% in the united states; +1.2% internationally new +10.1%; used +4.5%; finance & insurance +9.9%; service and parts +3.1% +11.5% in the united states; +1.2% internationally average transaction price per unit new $38,099; +2.9% used $25,076; -2.6% new $38,099; +2.9% used $25,076; -2.6% average gross profit per unit new $2,959, -$149/unit; gross margin 7.8%, -60 bps used $1,958, -$133/unit; gross margin 7.8%, -30 bps finance & insurance $1,010, +$14/unit new $2,959, -$149/unit; gross margin 7.8%, -60 bps used $1,958, -$133/unit; gross margin 7.8%, -30 bps finance & insurance $1,010, +$14/unit chairman roger penske said, “penske automotive group delivered strong operating results and record profitability in the first quarter, including double-digit growth in operating income, income from continuing operations and earnings per share. i was pleased to see our gross margin improve to 15.7% on the strength of a 3.1% increase in same-store service and parts revenue and a 60 basis-point increase in service and parts gross margin to 58.4%. additionally, sg&a as a percent of gross profit improved 80 basis points year-over-year to 77.5% and 200 basis-points sequentially, helping drive an increase in our operating margin to 3.1%.” securities repurchase activity during the first quarter, the company acquired 410,000 shares of its common stock for an aggregate purchase price of $12.7 million, or an average price of $30.93 per share. the company currently has remaining authorization from its board of directors to repurchase up to $85.6 million of its outstanding common stock or debt. securities may be acquired from time to time either through open market purchases, negotiated transactions or other means. conference call penske automotive will host a conference call discussing financial results relating to the first quarter of 2013 on april 29, 2013, at 2:00 p.m. eastern daylight time. to listen to the conference call, participants must dial (800) 230-1059 [international, please dial (612) 234-9959]. 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 2013 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., headquartered in bloomfield hills, michigan, operates 342 retail automotive franchises, representing 40 different brands and 30 collision repair centers. penske automotive, which sells new and previously owned vehicles, finance and insurance products and replacement parts, and offers maintenance and repair services on all brands it represents, has 174 franchises in 18 states and puerto rico and 168 franchises located outside the united states, primarily in the united kingdom. penske automotive is a member of the fortune 500 and russell 2000 and has approximately 16,700 employees. 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 future sales potential and 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, regulatory 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, 2012, 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. find a vehicle: http://www.penskecars.comengage penske automotive: http://www.penskesocial.comlike penske automotive on facebook: https://facebook.com/penskecarsfollow penske automotive on twitter: https://twitter.com/#!/penskecarscorpvisit penske automotive on youtube: http://www.youtube.com/penskecars 12.9% 7.4% 11.5% 6.8% (24.0% ) 7.7% 13.7% 7.7% 5.2% (26.7% ) 7.7% 7.9% 6.9% 11.6% 11.7% 7.6% (2.9% ) (46.8% ) 11.2% 5.5% 14.2% 23.4% 88.8% 23.2% 14.5% 23.1% 0.1% 14.2% 88.8% 13.9% 23.2% nm – not meaningful 9.7% 10.2% total retail 9.9% 6.9% 6.6% 6.8% 10.1% 4.5% 9.9% 3.1% 7.4% 2.9% (2.6% ) (4.8% ) (6.4% ) 1.4% (60 bps ) (30 bps ) total gross profit (10 bps ) (80 bps ) * see the following non-gaap reconciliation table reconciliation of first quarter 2013 and 2012 net income to ebitda (earnings before interest, income taxes, depreciation and amortization): 23.4% 11.6% (2.9% ) 5.5% 9.5% nm – not meaningful
