Penske Automotive Group Inc. (PAG, Financial) filed Quarterly Report for the period ended 2010-06-30.
Penske Automotive Group Inc. has a market cap of $1.27 billion; its shares were traded at around $13.81 with a P/E ratio of 13.9 and P/S ratio of 0.1. PAG is in the portfolios of Ron Baron of Baron Funds, Paul Tudor Jones of The Tudor Group, Chuck Royce of Royce& Associates, Bruce Kovner of Caxton Associates, Murray Stahl of Horizon Asset Management, Steven Cohen of SAC Capital Advisors.
Retail gross profit from new vehicle sales increased $25.2 million, or 29.3%, from 2009 to 2010. The increase is due to a $20.5 million, or 23.9%, increase in same store gross profit, coupled with a $4.7 million increase from net dealership acquisitions. The same store increase is due primarily to the 14.9% increase in retail unit sales, which increased gross profit by $13.8 million, coupled with a $203, or 7.8%, increase in the average gross profit per new vehicle retailed, which increased gross profit by $6.7 million.
Finance and insurance revenue increased $8.9 million, or 16.3%, from 2009 to 2010. The increase is due to a $7.5 million, or 13.7%, increase in same store revenues during the period, coupled with a $1.4 million increase from net dealership acquisitions. The same store revenue increase is due to a 12.0% increase in total retail unit sales, which increased revenue by $6.7 million, coupled with a $15, or 1.6%, increase in comparative average finance and insurance revenue per unit which increased revenue by $0.8 million.
Distribution units wholesaled during the quarter decreased 1,619 units, or 44.2%, from 3,659 in 2009 to 2,040 in 2010. During the three months ended June 30, 2010, smart USA recorded $0.4 million of incentives relating to 2009 model year inventory which decreased gross profit. Due largely to the reduction in wholesale unit sales and the incentives on 2009 model year inventory, distribution segment revenue decreased $26.8 million, or 45.5%, to $32.1 million in 2010, and segment gross profit decreased $4.6 million, or 61.3%, to $2.9 million in 2010. In total, the distribution segment generated a loss of $3.6 million in 2010 compared with income of $1.0 million in 2009.
Depreciation decreased $1.7 million, or 12.7%, from $13.8 million to $12.1 million. The decrease is due to a $2.0 million, or 14.7%, decrease in same store depreciation, offset by a $0.3 million increase from net dealership acquisitions. The same store decrease was primarily due to a $1.4 million impact from a change in the estimated useful lives of certain fixed assets effective January 1, 2010.
During the three months ended June 30, 2010, we repurchased $41.5 million principal amount of our Convertible Notes, which had a book value, net of debt discount, of $40.0 million for $41.9 million. We allocated $2.4 million of the total consideration to the reacquisition of the equity component of the Convertible Notes. In connection with the transactions, we wrote off $0.2 million of unamortized deferred financing costs. As a result, we recorded a $0.4 million pre-tax gain in connection with the repurchases.
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Penske Automotive Group Inc. has a market cap of $1.27 billion; its shares were traded at around $13.81 with a P/E ratio of 13.9 and P/S ratio of 0.1. PAG is in the portfolios of Ron Baron of Baron Funds, Paul Tudor Jones of The Tudor Group, Chuck Royce of Royce& Associates, Bruce Kovner of Caxton Associates, Murray Stahl of Horizon Asset Management, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
New vehicle retail sales revenue increased $265.7 million, or 24.4%, from 2009 to 2010. The increase is due to a $213.3 million, or 19.6%, increase in same store revenues, coupled with a $52.4 million increase from net dealership acquisitions. The same store revenue increase is due primarily to the 14.9% increase in retail unit sales, which increased revenue by $169.2 million, coupled with a $1,334, or 4.1%, increase in average selling prices per unit which increased revenue by $44.1 million.Retail gross profit from new vehicle sales increased $25.2 million, or 29.3%, from 2009 to 2010. The increase is due to a $20.5 million, or 23.9%, increase in same store gross profit, coupled with a $4.7 million increase from net dealership acquisitions. The same store increase is due primarily to the 14.9% increase in retail unit sales, which increased gross profit by $13.8 million, coupled with a $203, or 7.8%, increase in the average gross profit per new vehicle retailed, which increased gross profit by $6.7 million.
Finance and insurance revenue increased $8.9 million, or 16.3%, from 2009 to 2010. The increase is due to a $7.5 million, or 13.7%, increase in same store revenues during the period, coupled with a $1.4 million increase from net dealership acquisitions. The same store revenue increase is due to a 12.0% increase in total retail unit sales, which increased revenue by $6.7 million, coupled with a $15, or 1.6%, increase in comparative average finance and insurance revenue per unit which increased revenue by $0.8 million.
Distribution units wholesaled during the quarter decreased 1,619 units, or 44.2%, from 3,659 in 2009 to 2,040 in 2010. During the three months ended June 30, 2010, smart USA recorded $0.4 million of incentives relating to 2009 model year inventory which decreased gross profit. Due largely to the reduction in wholesale unit sales and the incentives on 2009 model year inventory, distribution segment revenue decreased $26.8 million, or 45.5%, to $32.1 million in 2010, and segment gross profit decreased $4.6 million, or 61.3%, to $2.9 million in 2010. In total, the distribution segment generated a loss of $3.6 million in 2010 compared with income of $1.0 million in 2009.
Depreciation decreased $1.7 million, or 12.7%, from $13.8 million to $12.1 million. The decrease is due to a $2.0 million, or 14.7%, decrease in same store depreciation, offset by a $0.3 million increase from net dealership acquisitions. The same store decrease was primarily due to a $1.4 million impact from a change in the estimated useful lives of certain fixed assets effective January 1, 2010.
During the three months ended June 30, 2010, we repurchased $41.5 million principal amount of our Convertible Notes, which had a book value, net of debt discount, of $40.0 million for $41.9 million. We allocated $2.4 million of the total consideration to the reacquisition of the equity component of the Convertible Notes. In connection with the transactions, we wrote off $0.2 million of unamortized deferred financing costs. As a result, we recorded a $0.4 million pre-tax gain in connection with the repurchases.
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