Penske Automotive Group, Inc. (NYSE:PAG), 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
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts