Total Retail Unit Sales Increase 18.1%
BLOOMFIELD HILLS, Mich., Apr 25, 2012
-- Revenues Increase 17.9% to $3.2 Billion
--Same-store Retail Revenue Increases 7.5%
--Income from Continuing Operations Increases 37.3% to $50.0 Million
--EPS from Continuing Operations Increases 41.0% to $0.55
Penske Automotive Group, Inc., an international automotive retailer, announced today the most profitable first quarter in Company history. First quarter 2012 income from continuing operations attributable to common shareholders increased 37.3% to $50.0 million and related earnings per share increased 41.0% to $0.55 per share. This compares to income from continuing operations attributable to common shareholders of $36.4 million, or $0.39 per share in the same period last year.
First quarter revenue increased by 17.9% to $3.2 billion, driven by an improvement in total retail unit sales of 18.1% and growth in the Company's used-to-new ratio to .89 to 1 from .78 to 1 in the same period last year. Same-store new and used retail unit sales increased 9.5% and total same-store retail revenue increased 7.5% with each area of the business generating growth.
Total gross profit improved 15.3% to $506.6 million. The Company's selling, general and administrative expenses as a percentage of gross profit leveraged 220 basis points in the first quarter to 78.7% contributing to a 31.3% improvement in operating income to $94.6 million. Operating income as a percent of revenue was 2.9%, representing an improvement of 30 basis points.
Highlights of the First Quarter
-- Total retail unit sales increased 18.1% to 81,472 -- +12.3% in the United States; +30.7% internationally
-- New unit retail sales +11.5%
-- Used unit retail sales +26.6%
-- Same-store retail revenue increased 7.5% -- New +5.1%; Used +14.0%; Finance & Insurance +14.2%; Service and Parts +0.7%
-- +8.5% in the United States; +5.9% Internationally
-- Average Gross Profit Per Unit -- New $3,064; Gross Margin 8.4%, up 50 basis points
-- Used $2,043; Gross Margin 8.1%, down 10 basis points
-- Finance & Insurance $981
Chairman Roger Penske said, "I am extremely pleased with our team's performance. Our results continue to demonstrate the strength and diversity of our business in both the U.S. and international markets. We produced another outstanding quarter of profitability while generating same-store revenue increases in each area of our business, including same-store retail revenue growth of 7.5%. New and used vehicle margins were strong, and our service and parts operations gross margin added 60 basis points to 57.7%."
Penske added, "In light of perceptions surrounding our international markets, I am particularly pleased with the performance of these businesses. During the first quarter, our international-based same-store retail revenue increased 5.9%."
Securities Repurchase Activity
During the first quarter the Company acquired 350,000 shares of its common stock for an aggregate purchase price of $8.5 million, or an average price of $24.35 per share. The Company currently has remaining authorization from its Board of Directors to repurchase up to $98.3 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.
Penske Automotive will host a conference call discussing financial results relating to the first quarter of 2012 on April 25, 2012, at 2:30 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (800) 230-1085 [International, please dial (612) 234-9960]. The call will also be simultaneously broadcast over the Internet through the Investors Relations section of the Penske Automotive Group website at www.penskeautomotive.com .
About Penske Automotive
Penske Automotive Group, Inc., headquartered in Bloomfield Hills, Michigan, operates 335 retail automotive franchises, representing 40 different brands and 29 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 168 franchises in 17 states and Puerto Rico and 167 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 16,000 employees.