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Sep 30, 2020
Penske Q3 2020 Earnings Report
Penske Automotive Group reported record results for the third quarter of 2020, marking the most profitable quarter in company history.
Key Takeaways
Penske Automotive Group announced record results for Q3 2020, with income from continuing operations attributable to common shareholders reaching $246.5 million, or $3.07 per share. Revenue remained flat at $6 billion. These results were driven by same-store retail automotive revenue and margin expansion, coupled with expense reductions.
Retail automotive same-store revenue increased 3.6%.
Retail automotive earnings before taxes increased 170%.
Retail automotive same-store variable gross profit per unit retailed increased 29%.
Total gross margin increased 140 basis points to 16.0%.
Penske
Penske
Penske Revenue by Segment
Penske Revenue by Geographic Location
Revenue by Segment
New Vehicles Revenue
CapyFin.comUsed Vehicles Revenue
CapyFin.comFinance & Insurance Revenue
CapyFin.comService & Parts Revenue
CapyFin.comFleet & Wholesale Revenue
CapyFin.comTruck - New Vehicles Revenue
CapyFin.comTruck - Used Vehicles Revenue
CapyFin.comTruck - F&I Revenue
CapyFin.comTruck - Service & Parts Revenue
CapyFin.comCommercial Dist. & Other Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comU.K. Revenue
CapyFin.comOther International Revenue
CapyFin.com Forward Guidance
Penske Automotive Group is expecting continued positive performance, with plans to expand their Used Vehicle SuperCenters.
Positive Outlook
- Strong cash flow has allowed the company to significantly reduce long-term debt.
- Lengthened maturities.
- Reduced future annual interest expense by an estimated $17 million.
- Company expects to open two additional Used Vehicle SuperCenters in the next 90 days.
- Four additional sites are under development which would increase the current footprint of SuperCenters by 40%.
Challenges Ahead
- The duration, severity and resolution of the COVID-19 pandemic.
- Government imposed restrictions on our business in light of COVID-19 or otherwise.
- Economic conditions generally.
- Conditions in the credit markets.
- Changes in interest rates and foreign currency exchange rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income