Penske Automotive Group Inc. has a market cap of $1.33 billion; its shares were traded at around $14.52 with a P/E ratio of 13.2 and P/S ratio of 0.1. PAG is in the portfolios of Ron Baron of Baron Funds, Chuck Royce of Royce& Associates, Mario Gabelli of GAMCO Investors, Murray Stahl of Horizon Asset Management, Steven Cohen of SAC Capital Advisors.
This is the annual revenues and earnings per share of PAG over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of PAG.
Highlight of Business Operations:New vehicle retail sales revenue increased $77.5 million, or 5.8%, from 2009 to 2010. The increase is due to a $51.9 million increase from net dealership acquisitions, coupled with a $25.6 million, or 1.9%, increase in same store revenues. The same store revenue increase is due primarily to a $2,839, or 8.8%, increase in average selling prices per unit which increased revenue by $110.5 million, offset by the 6.3% decrease in retail unit sales, which decreased revenue by $84.9 million.
Retail gross profit from new vehicle sales decreased $0.5 million, or 0.4%, from 2009 to 2010. The decrease is due to a $4.5 million, or 4.0%, decrease in same store gross profit, offset by a $4.0 million increase from net dealership acquisitions. The same store decrease is due primarily to the 6.3% decrease in retail unit sales, which decreased gross profit by $7.1 million, offset by a $66, or 2.4%, increase in the average gross profit per new vehicle retailed, which increased gross profit by $2.6 million.
Retail gross profit from used vehicle sales decreased $2.4 million, or 4.0%, from 2009 to 2010. The decrease is due to a $3.4 million, or 5.7%, decrease in same store gross profit, offset by a $1.0 million increase from net dealership acquisitions. The decrease in same store gross profit is due to a $378, or 16.4%, decrease in average gross profit per used vehicle retailed, which decreased retail gross profit by $9.7 million, offset by the 12.9% increase in used retail unit sales, which increased gross profit by $6.3 million.
Finance and insurance revenue increased $6.2 million, or 10.2%, from 2009 to 2010. The increase is due to a $4.7 million, or 7.7%, increase in same store revenues during the period, coupled with a $1.5 million increase from net dealership acquisitions. The same store revenue increase is due to a $60, or 6.6%, increase in comparative average finance and insurance revenue per unit which increased revenue by $4.0 million, coupled with a 1.0% increase in total retail unit sales, which increased revenue by $0.7 million.
Distribution units wholesaled during the quarter decreased 2,236 units, or 65.7%, from 3,401 in 2009 to 1,165 in 2010. During the three months ended September 30, 2010, smart USA recorded $1.4 million of incentives which decreased gross profit. Distribution segment revenue decreased $25.4 million, or 56.6%, to $19.5 million in 2010 due largely to the reduction in wholesale unit sales. As a result, segment gross profit decreased $5.4 million, or 88.5%, to $0.7 million in 2010. During 2010, the distribution segment recorded $1.6 million in pre-production costs related to its efforts to procure a vehicle from Nissan for distribution through smart USA. In total, the distribution segment generated a loss of $6.1 million in 2010 compared with a loss of $5.9 million in 2009.
During the three months ended September 30, 2010, we repurchased $43.0 million principal amount of our Convertible Notes, which had a book value, net of debt discount, of $41.6 million for $43.3 million. We allocated $2.5 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 $0.6 million of pre-tax gain in connection with the repurchase.
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