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Penske
🇺🇸 NYSE:PAG
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Mar 31, 2020

Penske Q1 2020 Earnings Report

Penske Automotive Group reported first quarter results with income from continuing operations of $51.6 million and EPS of $0.64. Revenue was $5.0 billion, impacted by COVID-19 in March.

Key Takeaways

Penske Automotive Group's first quarter 2020 results were impacted by the COVID-19 pandemic, particularly in March. Income from continuing operations was $51.6 million, or $0.64 per share, compared to $100.1 million, or $1.19 per share in the prior year. Revenue decreased to $5.0 billion from $5.6 billion in the same period last year. The company implemented measures to mitigate the impact of COVID-19, including expense reductions and workforce furloughs.

Income from continuing operations was $51.6 million, or $0.64 per share.

Revenue totaled $5.0 billion, a decrease from $5.6 billion in the same period last year.

The company generated $212 million in cash flow from operations and $145 million in free cash flow.

Penske implemented measures to mitigate the impact of COVID-19, including a hiring freeze, expense reductions, and workforce furloughs.

Total Revenue
$5.01B
Previous year: $5.56B
-10.0%
EPS
$0.64
Previous year: $1.25
-48.8%
Gross Profit
$777M
Previous year: $852M
-8.8%
Cash and Equivalents
$432M
Previous year: $43.5M
+892.9%
Free Cash Flow
$145M
Total Assets
$13.8B
Previous year: $13.6B
+1.8%

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Forward Guidance

Penske believes the actions taken will help overcome the challenges of the COVID-19 pandemic and are encouraged by the improving conditions they are starting to see across many of their markets and will continue to actively monitor the situation and adjust the business model to adapt to the changes presented by COVID-19.

Positive Outlook

  • Implemented a hiring freeze.
  • Initiated expense reductions.
  • Deferred approximately $150 million in capital expenditures.
  • Furloughed approximately 15,000 employees representing 57% of the worldwide workforce.
  • Implemented significant pay cuts including a temporary 100% reduction in salary for the CEO and President, a 25% reduction in salary for our other executive officers, and the Board of Directors has waived cash compensation through the end of September 2020.

Challenges Ahead

  • The duration, severity and resolution of the COVID-19 pandemic.
  • Economic conditions generally.
  • Conditions in the credit markets.
  • Changes in interest rates and foreign currency exchange rates.
  • Adverse impacts related to the outcome of the United Kingdom’s departure from the European Union.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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