Penske automotive reports fourth quarter results
Bloomfield hills, mich.--(business wire)--penske automotive group, inc. (nyse: pag), an international automotive retailer, today reported adjusted fourth quarter income from continuing operations attributable to common shareholders of $29.5 million, or $0.32 per share, which compares to income from continuing operations attributable to common shareholders of $19.4 million, or $0.21 per share, in the fourth quarter last year. adjusted fourth quarter 2010 income from continuing operations attributable to common shareholders excludes a net after-tax gain of $0.8 million, or $0.01 per share, relating to the items highlighted in the reconciliation in the attached selected data tables. total revenue in the fourth quarter increased 13.5% to $2.8 billion. fourth quarter highlights total retail unit sales increase 13.9% 18.9% in the united states 3.7% internationally 18.9% in the united states 3.7% internationally total same-store retail revenues increase 9.1% 13.5% in the united states 2.0% internationally 13.5% in the united states 2.0% internationally long-term debt reduced by $167 million since the beginning of the year, including $74 million during the fourth quarter days supply of vehicle inventories as of december 31, 2010 55 days for new 43 days for used 55 days for new 43 days for used “our results exceeded my expectations,” said penske automotive group chairman roger penske. “an improving retail environment in the u.s. drove our business in the fourth quarter, including a 13.8% increase in same-store total retail unit sales and a 7.0% increase in same-store service and parts revenues. in the u.k., our execution and our brand mix helped us to outperform the market and provide a strong contribution of profits despite difficult comparisons due to the government incentive programs in place last year.” total revenues for the year ended december 31, 2010 increased 12.7% to $10.7 billion. adjusted income from continuing operations attributable to common shareholders for the year ended december 31, 2010 amounted to $109.3 million, or $1.19 per share, which compares to adjusted income from continuing operations attributable to common shareholders of $80.2 million, or $0.87 per share, in the year ended december 31, 2009. adjusted income from continuing operations attributable to common shareholders in the years ended december 31, 2010 and 2009 exclude net after-tax gains of $1.8 million ($0.02 per share) and $3.1 million ($0.03 per share), respectively, relating to the items highlighted in the reconciliations in the attached selected data tables. smart usa the distribution business generated after-tax losses of $5.8 million ($0.06 per share) and $15.9 million ($0.17 per share) in the three and twelve months ended december 31, 2010, respectively. results for the fourth quarter and full year include after-tax expenses of $2.7 million ($0.03 per share) and $3.6 million in ($0.04), respectively, relating to the development of the five-door vehicle previously designed for distribution through the smart usa dealer network. as previously announced, mercedes-benz usa and the company have initiated discussions to transfer distribution of the smart fortwo to mercedes-benz usa. as a result, smart usa cancelled the project relating to the five-door vehicle. acquisition activity during 2010, the company acquired 8 franchises and commenced operations at 16 franchises awarded by manufacturers. these 24 franchises are expected to generate approximately $400 million of revenue on an annualized basis. financing activity during 2010, the company repurchased $155.7 million principal amount of its outstanding 3.5% senior subordinated convertible notes due 2026 (the “convertible notes”) for $156.6 million in cash. the company currently expects to use cash flow from operations, existing working capital, and borrowings under its u.s. revolving credit facility to fund the expected april 2011 redemption of the remaining $150.6 million principal amount of outstanding convertible notes. as of december 31, 2010, the company had $300.0 million of revolving credit available under its u.s. credit facility. the company also has authorization to repurchase up to $150.0 million of its outstanding common stock, debt or convertible 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 fourth quarter of 2010 on february 16, 2011, at 2:00 p.m. eastern standard time. to listen to the conference call, participants must dial (800) 230-1074 [international, please dial (612) 234-9960]. the call will also be simultaneously broadcast over the internet through the penske automotive group website at www.penskeautomotive.com. about penske automotive penske automotive group, inc. (www.penskeautomotive.com), headquartered in bloomfield hills, michigan, operates 325 retail automotive franchises, representing 39 different brands and 25 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 172 franchises in 17 states and puerto rico and 153 franchises located outside the united states, primarily in the united kingdom. penske automotive, through its wholly-owned subsidiary smart usa distributor llc (www.smartusa.com), is the exclusive distributor of the smart fortwo vehicle and related parts in the united states. smart usa supports approximately 75 smart retail centers in the united states. penske automotive is a member of the fortune 500 and russell 1000 and has approximately 14,500 employees. smart and fortwo are registered trademarks of daimler ag. non-gaap financial measures this release contains certain non-gaap financial measures as defined under sec rules, such as adjusted income from continuing operations attributable to common shareholders and related earnings per share, ebitda and adjusted ebitda. the company has reconciled these measures to the most directly comparable gaap measures in the release. the company believes that these non-gaap financial measures improve the transparency of the company's disclosure by providing period-to-period comparability of the company's results from operations. 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 expected revenue, ability to access amounts under its u.s. revolving credit facility, and efforts to transition the smart usa distributorship. actual results may vary materially because of risks and uncertainties, including external factors such as consumer credit conditions, adverse conditions affecting a particular manufacturer, macro-economic factors, interest rate fluctuations, changes in consumer spending, and other factors over which management has no control. availability of revolving credit under the company’s u.s. credit facility is predicated on continued covenant compliance and other factors. successful transition of the smart usa distributorship will depend on negotiation and completion of definitive documentation, regulatory approvals, and other factors. 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, 2009, 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. fourth quarter 2010 2009 year 2010 2009 12/31/10 12/31/09 fourth quarter year 2010 2009 2010 2009 fourth quarter year 2010 2009 2010 2009 reconciliation of 2010 and 2009 reported and adjusted income from continuing operations attributable to common shareholders of pag and related earnings per share: fourth quarter 2010 2009 income eps income eps $30,262 $0.33 $19,436 $0.21 $29,481 $0.32 $19,436 $0.21 twelve months 2010 2009 income eps income eps $111,190 $1.21 $83,299 $0.91 $109,347 $1.19 $80,171 $0.87 reconciliation of 2010 and 2009 net income to ebitda and adjusted ebitda: fourth quarter twelve months 2010 2009 2010 2009 1,753 759 2,909 6,838
