Penske Automotive Group Inc. (PAG, Financial) filed Quarterly Report for the period ended 2009-03-31.
United Auto Group Inc. is a leading acquirer consolidator and operator of franchised automobile and light truck dealerships and related businesses. As an integral part of its dealership operations they also sells used vehicles. All of the franchised dealerships include integrated service and parts operations which are an important source of recurring revenues. In addition these dealerships market a complete line of aftermarket automotive products and services through its wholly owned subsidiaries United Auto Care Inc. and United Auto Care Products Inc. Penske Automotive Group Inc. has a market cap of $1.2 billion; its shares were traded at around $13.16 with a P/E ratio of 12.3 and P/S ratio of 0.1. Penske Automotive Group Inc. had an annual average earning growth of 6.6% over the past 5 years.
New vehicle retail sales revenue decreased $653.9 million, or 40.2%, from 2008 to 2009. The decrease is due to a $688.8 million, or 42.9%, decrease in same store revenues, offset by a $34.9 million increase from net dealership acquisitions. The same store revenue decrease is due primarily to the 35.1% decrease in retail unit sales, which reduced revenue by $564.5 million, coupled with the $4,291, or 11.9%, decrease in average selling prices per unit, which decreased revenue by $124.3 million.
Retail gross profit from new vehicle sales decreased $65.2 million, or 47.7%, from 2008 to 2009. The decrease is due to a $67.9 million, or 50.3%, decrease in same store gross profit, offset by a $2.7 million increase from net dealership acquisitions. The same store decrease is due primarily to the 35.1% decrease in retail unit sales, which reduced gross profit by $47.4 million, coupled with the $706, or 23.4%, decrease in the average gross profit per new vehicle retailed, which decreased gross profit by $20.5 million.
Used vehicle retail sales revenue decreased $179.5 million, or 22.6%, from 2008 to 2009. The decrease is due to a $214.2 million, or 27.2%, decrease in same store revenues, offset by a $34.7 million increase from net dealership acquisitions. The same store revenue decrease is due to the $7,220, or 24.0% decrease in comparative average selling prices per vehicle, which decreased revenue by $181.3 million, coupled with the 4.2% decrease in same store retail unit sales which decreased revenue by $32.9 million.
Retail gross profit from used vehicle sales decreased $9.8 million, or 14.9%, from 2008 to 2009. The decrease is due to a $13.2 million, or 20.2%, decrease in same store gross profit, offset by a $3.4 million increase from net dealership acquisitions. The decrease in same store gross profit is due to the $417, or 16.7%, decrease in average gross profit per used vehicle retailed, which decreased retail gross profit by $10.5 million, coupled with the 4.2% decrease in used retail unit sales, which decreased gross profit by $2.7 million.
Finance and insurance revenue decreased $25.5 million, or 34.5%, from 2008 to 2009. The decrease is due to a $26.9 million, or 36.7%, decrease in same store revenues during the period, offset by a $1.4 million increase from net dealership acquisitions. The same store revenue decrease is due to the 23.7% decrease in retail unit sales which decreased revenue by $17.4 million, coupled with the $176, or 17.0%, decrease in comparative average finance and insurance revenue per unit which decreased revenue by $9.5 million. The $176 decrease in comparative average finance and insurance revenue per unit retailed is due primarily to decreased sales penetration of certain products which we believe was brought about by the challenging economic conditions.
Read the The complete ReportPAG is in the portfolios of Ron Baron of Baron Funds, David Dreman of Dreman Value Management, David Dreman of Dreman Value Management, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.
United Auto Group Inc. is a leading acquirer consolidator and operator of franchised automobile and light truck dealerships and related businesses. As an integral part of its dealership operations they also sells used vehicles. All of the franchised dealerships include integrated service and parts operations which are an important source of recurring revenues. In addition these dealerships market a complete line of aftermarket automotive products and services through its wholly owned subsidiaries United Auto Care Inc. and United Auto Care Products Inc. Penske Automotive Group Inc. has a market cap of $1.2 billion; its shares were traded at around $13.16 with a P/E ratio of 12.3 and P/S ratio of 0.1. Penske Automotive Group Inc. had an annual average earning growth of 6.6% over the past 5 years.
Highlight of Business Operations:
Our results for the three months ended March 31, 2009 include a gain of $10.4 million ($6.5 million after-tax), or $0.07 per share, relating to the repurchase of $68.7 million aggregate principal amount of our 3.5% senior subordinated convertible notes.New vehicle retail sales revenue decreased $653.9 million, or 40.2%, from 2008 to 2009. The decrease is due to a $688.8 million, or 42.9%, decrease in same store revenues, offset by a $34.9 million increase from net dealership acquisitions. The same store revenue decrease is due primarily to the 35.1% decrease in retail unit sales, which reduced revenue by $564.5 million, coupled with the $4,291, or 11.9%, decrease in average selling prices per unit, which decreased revenue by $124.3 million.
Retail gross profit from new vehicle sales decreased $65.2 million, or 47.7%, from 2008 to 2009. The decrease is due to a $67.9 million, or 50.3%, decrease in same store gross profit, offset by a $2.7 million increase from net dealership acquisitions. The same store decrease is due primarily to the 35.1% decrease in retail unit sales, which reduced gross profit by $47.4 million, coupled with the $706, or 23.4%, decrease in the average gross profit per new vehicle retailed, which decreased gross profit by $20.5 million.
Used vehicle retail sales revenue decreased $179.5 million, or 22.6%, from 2008 to 2009. The decrease is due to a $214.2 million, or 27.2%, decrease in same store revenues, offset by a $34.7 million increase from net dealership acquisitions. The same store revenue decrease is due to the $7,220, or 24.0% decrease in comparative average selling prices per vehicle, which decreased revenue by $181.3 million, coupled with the 4.2% decrease in same store retail unit sales which decreased revenue by $32.9 million.
Retail gross profit from used vehicle sales decreased $9.8 million, or 14.9%, from 2008 to 2009. The decrease is due to a $13.2 million, or 20.2%, decrease in same store gross profit, offset by a $3.4 million increase from net dealership acquisitions. The decrease in same store gross profit is due to the $417, or 16.7%, decrease in average gross profit per used vehicle retailed, which decreased retail gross profit by $10.5 million, coupled with the 4.2% decrease in used retail unit sales, which decreased gross profit by $2.7 million.
Finance and insurance revenue decreased $25.5 million, or 34.5%, from 2008 to 2009. The decrease is due to a $26.9 million, or 36.7%, decrease in same store revenues during the period, offset by a $1.4 million increase from net dealership acquisitions. The same store revenue decrease is due to the 23.7% decrease in retail unit sales which decreased revenue by $17.4 million, coupled with the $176, or 17.0%, decrease in comparative average finance and insurance revenue per unit which decreased revenue by $9.5 million. The $176 decrease in comparative average finance and insurance revenue per unit retailed is due primarily to decreased sales penetration of certain products which we believe was brought about by the challenging economic conditions.
Read the The complete ReportPAG is in the portfolios of Ron Baron of Baron Funds, David Dreman of Dreman Value Management, David Dreman of Dreman Value Management, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.
