Penske automotive reports fourth quarter and full year results
Bloomfield hills, mich.--(business wire)--penske automotive group, inc. (nyse:pag): revenue increases 17.9% to $3.4 billion revenue increases 18.3% to $13.2 billion same-store retail revenue increases 11.4 % same-store retail revenue increases 9.9% income from continuing operations increases 19.5% to $51.0 million adjusted inc. from continuing operations increases 25.8% to $206.0 million eps from continuing operations increases 21.3% to $0.57 per share adjusted eps from continuing operations increases 26.7% to $2.28 per share ebitda increases 14.4% to $102.2 million adjusted ebitda increases 19.6% to $407.6 million penske automotive group, inc. (nyse:pag), an international automotive retailer, announced today record fourth quarter income from continuing operations and related earnings per share. for the fourth quarter 2012, income from continuing operations attributable to common shareholders increased 19.5% to $51.0 million and related earnings per share increased 21.3% to $0.57 per share. this compares to income from continuing operations attributable to common shareholders of $42.7 million, or $0.47 per share in the same period last year. fourth quarter results include $1.7 million ($1.2 million after-taxes, or $0.01 per share) in expenses for insurance deductibles and clean-up costs associated with superstorm sandy. total revenue increased 17.9% to $3.4 billion, including a same-store retail revenue increase of 11.4% in the fourth quarter. the revenue increase was driven by a 19.3% increase in total retail unit sales, including an 11.5% increase on a same-store basis. gross profit improved 16.9% to $515.1 million while operating income increased 19.9% to $91.5 million. highlights of the fourth quarter total retail unit sales increased 19.3% to 81,383 +15.3% in the united states; +30.3% internationally new unit retail sales +21.7% used unit retail sales +16.2% +15.3% in the united states; +30.3% internationally new unit retail sales +21.7% used unit retail sales +16.2% same-store retail revenue increased 11.4% new +16.1%; used +6.0%; finance & insurance +13.0%; service and parts +3.2% +12.8% in the united states; +8.5% internationally new +16.1%; used +6.0%; finance & insurance +13.0%; service and parts +3.2% +12.8% in the united states; +8.5% internationally average transaction price per unit new $38,881; (0.4%) used $25,791; (2.5%) new $38,881; (0.4%) used $25,791; (2.5%) average gross profit per unit new $3,197, ($58/unit); gross margin 8.2%, (10 basis points) used $1,857, ($61/unit); gross margin 7.2%, (10 basis points) finance & insurance $986, +$1/unit new $3,197, ($58/unit); gross margin 8.2%, (10 basis points) used $1,857, ($61/unit); gross margin 7.2%, (10 basis points) finance & insurance $986, +$1/unit chairman roger penske said, “i’m pleased that our retail automotive business reported record profitability in the fourth quarter, producing double-digit growth in operating income, income from continuing operations and earnings per share during the fourth quarter, despite the effects of superstorm sandy which impacted operations in the northeast u.s. during the quarter. i am particularly pleased that our same-store retail revenues improved by 11.4% while gross profit per retail unit stabilized, and service and parts margin improved 110 basis points to 58.8%.” for the year ended december 31, 2012, total revenue increased 18.3% to $13.2 billion. adjusted income from continuing operations attributable to common shareholders increased 25.8% to $206.0 million and adjusted earnings per share attributable to common shareholders increased 26.7% to $2.28 per share. this compares to adjusted income from continuing operations attributable to common shareholders of $163.8 million, and adjusted earnings per share of $1.80 per share in the same period last year. the full year 2012 results exclude after-tax costs of $13.0 million, or $0.14 per share, of debt redemption costs associated with the redemption of the company’s $375 million of 7.75% senior subordinated notes due 2016. the full year 2011 results exclude $11.0 million, or $0.12 per share, of net income tax benefits reflecting a positive adjustment from the resolution of certain tax items in the u.k. of $17.0 million, or $0.19 per share, partially offset by a reduction in deferred tax assets of $6.0 million, or $0.07 per share. income from continuing operations attributable to common shareholders for the twelve months ended december 31, 2012, was $193.0 million, or $2.14 per share, compared to income from continuing operations attributable to common shareholders of $174.8 million, or $1.92 in the same period last year. penske continued, “2012 was a very solid year of growth and profitability for our company. we expanded our presence globally by completing acquisitions in northern ireland and italy, and we entered the madison, wisconsin, market in the u.s. in total, our business added $750 million in estimated annualized revenue through acquisitions during the year, and generated a 9.9% increase in same-store retail revenue, resulting in revenue growth of 18.3%, which contributed to a 23.4% increase in operating income and a 26.7% increase in adjusted earnings per share.” conference call penske automotive will host a conference call discussing financial results relating to the fourth quarter of 2012 on february 6, 2013, at 2:00 p.m. eastern standard time. to listen to the conference call, participants must dial (800) 230-1092 [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 fourth quarter and full year 2012 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 344 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 173 franchises in 18 states and puerto rico and 171 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 adjusted income from continuing operations, adjusted earnings per share from continuing operations, and adjusted earnings before interest, taxes, depreciation and amortization (“adjusted 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 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, 2011, 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.com engage penske automotive: http://www.penskesocial.com like penske automotive on facebook: https://facebook.com/penskecars follow penske automotive on twitter: https://twitter.com/#!/penskecarscorp visit penske automotive on youtube: http://www.youtube.com/penskecars penske automotive group, inc. consolidated condensed statements of income (amounts in thousands, except per share data) (unaudited) penske automotive group, inc. consolidated condensed balance sheets (amounts in thousands) (unaudited) penske automotive group, inc. consolidated condensed statements of income (amounts in thousands, except per share data) (unaudited) nm – not meaningful penske automotive group, inc. selected data (unaudited) penske automotive group, inc. selected data (continued) (unaudited) * see the following non-gaap reconciliation tables penske automotive group, inc. consolidated condensed statements of income (amounts in thousands, except per share data) (unaudited) nm = not meaningful penske automotive group, inc. selected data (unaudited) penske automotive group, inc. selected data (continued) (unaudited) * see the following non-gaap reconciliation tables penske automotive group, inc. selected data brand revenue mix (unaudited) nm nm = not meaningful
