Penske Automotive Group, Inc. · NYSE:PAG
Penske Automotive — Q1 2024 Earnings Presentation
41 slides from Penske Automotive's earnings presentation, Apr 30, 2024
Slide 1: First Quarter 2024 Financial Results
FIRST QUARTER 2024 FINANCIAL RESULTS April 2024
Slide 2: Forward-Looking Statement Disclaimer
FORWARD-LOOKING STATEMENT DISCLAIMER Statements in this presentation may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.'s financial performance and future plans. Actual results may vary materially because of risks and uncertainties th
Slide 3: PAG Overview
PAG OVERVIEW A Diversified Transportation Services Company Headquartered in Bloomfield Hills, MI USA For the Three Months Ended March 31, 2024: 28,500 4 9 employees worldwide continents countries 126,864 $7.4B new & used units delivered revenue 360 18 automotive franchised CarShop used vehicle deale
Slide 4: Accolades and Awards
ACCOLADES AND AWARDS PAG – Best Retailer to Work For 2024 CarShop UK – Best Places to Work For 2021 CarShop US – Best Places to Work For 2019 Sytner Group – Best Retailer To Work For 2019 44 Dealers in 2023 46 Dealers in 2022 35 Dealers in 2021 Including nine of top 10 and 13 of top Includin
Slide 5: Retail Automotive Brand Mix
RETAIL AUTOMOTIVE BRAND MIX 72% 20% 1% 7% Premium Volume Non-U.S. U.S. CarShop (As of March 31, 2024) 26% (% of Total Worldwide Automotive Dealership Revenue) 13% 10% 9% 8% 8% 7% 6% 6% 3% 2% 1% 1% Other PENSKE AUTOMOTIVE GROUP / 5
Slide 6: Capital Allocation History
CAPITAL ALLOCATION HISTORY 2019 2020 2021 2022 2023 2024* (In Millions) Dividends $131 $68 $143 $154 $189 $59 Cap Ex $245 $186 $249 $283 $375 $103 Share Repurchases $174 $35 $294 $887 $382 $33 Acquisitions $327 --- $432 $393 $215 $244 *For the three months ended March 31, 2024 PENSKE AUTOMOTIVE GROU
Slide 7: Historical Long-Term Debt and Leverage
HISTORICAL LONG-TERM DEBT AND LEVERAGE (USD in Millions) $2,500 $2,360 3.5 3 $2,000 2.9x $1,690 $1,677 $1,622 $1,629 2.5 $1,500 $1,474 2 $1,000 1.8x 1.5 1 $500 1.0x 1.1x 0.8x 0.8x 0.5 $- 0 2019 2020 2021 2022 2023 Mar '24 Debt Leverage* *Refer to non-gaap reconciliation section beginning on page 36
Slide 8: Q1 2024 Review
Q1 2024 REVIEW
Slide 9: PAG Q1 Performance Summary
PAG Q1 PERFORMANCE SUMMARY Net Income Attributable to Total Revenue Income Per Share ($ in Billions) Common Stockholders ($ in Millions) $7.3 $7.4 $368 $4.76 $7.0 $4.31 $298 $3.21 $215 $2.26 $5.8 $183 Q1 '21 Q1 '22 Q1 '23 Q1 '24 Q1 '21 Q1 '22 Q1 '23 Q1 '24 Q1 '21 Q1 '22 Q1 '23 Q1 '24 PENSKE AUTOMOTI
Slide 10: Key Highlights – Q1
KEY HIGHLIGHTS – Q1 Retail Automotive (2024 vs 2023) Retail Commercial Trucks (2024 vs 2023) Total same-store units delivered (incl. Agency) Retailed 4,540 new & used trucks, -12%; same-store units -15% increased 1% to 122,060 Same-store revenue -15%; same-store gross profit -6% Same-store r
Slide 11: Q1 2024 Global Revenue
34% $7.4 57% Billion Q1 2024 GLOBAL 9% REVENUE North America United Kingdom Other International PENSKE AUTOMOTIVE GROUP / 11
Slide 12: Retail Auto Revenue Streams Drive Profitability
(For the three months ended March 31, 2024) 6% 2% 3% 19% 26% 12% 43% GROSS REVENUE PROFIT 12% RETAIL AUTO 36% 41% REVENUE STREAMS DRIVE PROFITABILITY New Vehicles Used Vehicles Service & Parts Finance & Insurance Fleet & Wholesale PENSKE AUTOMOTIVE GROUP / 12
Slide 13: Performance Highlights – Q1
PERFORMANCE HIGHLIGHTS – Q1 ($ in Millions) Q1 ’24 Q1 ’23 Chg Revenue $7,448 $7,339 +2% Excl F/X $7,350 flat Retail Auto Same-Store Revenue $6,218 $6,262 -1% Excl F/X $6,123 -2% Inc. from Cont. Ops Before Taxes $295 $407 -28% Excl F/X $293 -28% Income from Cont. Ops $215 $298 -28% Excl F/X $214 -28%
Slide 14: Retail Automotive
TOYOTA CENTRAL FLORIDA RETAIL AUTOMOTIVE
Slide 15: Retail Automotive Key Metrics
RETAIL AUTOMOTIVE KEY METRICS Same-Store Q1 ’24 Q1 ’23 Chg VOLUME METRICS New Units* 46,807 47,566 -2% Used Units 66,725 66,578 --- Agency Units 8,528 6,893 +24% Total Units 122,060 121,037 +1% GROSS PER UNIT* New $5,195 $6,326 -18% Used $1,833 $1,834 --- F&I $1,756 $1,790 -2% Var. Vehicle Gross $4,
Slide 16: Retail Automotive Same-Store Revenue
RETAIL AUTOMOTIVE SAME-STORE REVENUE Q1 ’24 Q1 ’23 ($ in Millions) Q1 ’24 Q1 ’23 Chg Chg Excl F/X Excl F/X New Vehicle $2,688 $2,719 -1% $2,657 $2,719 -2% Used Vehicle $2,238 $2,270 -1% $2,189 $2,270 -4% Finance & Insurance $202 $206 -2% $199 $206 -3% Service & Parts $714 $680 +5% $706 $680 +4% Flee
Slide 17: CarShop Used Vehicles
CARSHOP USED VEHICLES
Slide 18: CarShop Used Vehicle Centers
Operate 18 used vehicle centers across U.S./U.K. One price; no haggle approach In-store or 100% on-line Sequential improvement of variable gross profit from Q4 2023 to Q1 2024 of $180/unit or +9% Q1 ’24 Q1 ’23 Chg Units 18,881 19,165 -2% Revenue ($ in Millions) $456 $489 -7% Avg. Trans. Pric
Slide 19: CarShop Performance Summary
PERFORMANCE SUMMARY Q1 Units Q1 Revenue (in Millions) Q1 Gross/Unit 19,523 19,165 18,881 $516 $2,208 $489 $456 $2,155 $2,118 $2,054 $243 11,395 Q1 '21 Q1 '22 Q1 '23 Q1 '24 Q1 '21 Q1 '22 Q1 '23 Q1 '24 Q1 '21 Q1 '22 Q1 '23 Q1 '24 PENSKE AUTOMOTIVE GROUP / 19
Slide 20: Premier Truck Group
PREMIER TRUCK GROUP Amarillo, Texas Facility Opened January 2024
Slide 21: Premier Truck Group Overview
One of the largest dealership groups for Daimler Trucks N.A. Retails new and used Freightliner and Western Star Trucks 43 locations across North America Added tenth (10th) SelecTruck used vehicle location in Amarillo, Texas (April, 2024) Retailed 4,540 new and used units in Q1 2024 New -
Slide 22: Retail Commercial Truck Key Metrics
RETAIL COMMERCIAL TRUCK KEY METRICS Same-Store Q1 ’24 Q1 ’23 Chg VOLUME METRICS New Units 3,362 4,517 -26% Used Units 1,024 655 +56% Total Units 4,386 5,172 -15% GROSS PER UNIT New $9,651 $7,190 +34% Used $3,884 $8,195 -53% F&I $1,134 $961 +18% PENSKE AUTOMOTIVE GROUP / 22
Slide 23: Retail Commercial Truck Performance
RETAIL COMMERCIAL TRUCK PERFORMANCE Q1 Units Q1 Revenue (in Millions) Q1 Income ($ in Millions) 5,172 $896 4,692 $792 $792 $58 $57 4,540 $51 3,006 $435 $28 Q1 '21 Q1 '22 Q1 '23 Q1 '24 Q1 '21 Q1 '22 Q1 '23 Q1 '24 Q1 '21 Q1 '22 Q1 '23 Q1 '24 PENSKE AUTOMOTIVE GROUP / 23
Slide 24: Penske Australia & New Zealand
PENSKE AUSTRALIA & NEW ZEALAND
Slide 25: Penske Australia/New Zealand
PENSKE AUSTRALIA/NEW ZEALAND Exclusive importer and distributor of certain heavy/medium-duty trucks, buses and refuse collection vehicles – Western Star, MAN, Dennis Eagle Distributor of diesel/gas engines and power systems – MTU, Detroit Diesel, Allison Transmission, and Bergen engines Parts
Slide 26: Penske Transportation Solutions
PENSKE TRANSPORTATION SOLUTIONS
Slide 27: Penske Transportation Solutions (PTS)
PENSKE TRANSPORTATION SOLUTIONS (PTS) PENSKE AUTOMOTIVE GROUP / 27
Slide 28: PTS Highlights
PTS HIGHLIGHTS Managed fleet of over 442,000 trucks, tractors and trailers Q1 2024 Highlights: Operating revenue of $2.7 billion, up 3% Net income of $112 million, down 60% Return on sales 4% Lower equity earnings from PTS were primarily due to lower commercial rental utilization, lower
Slide 29: PTS Performance Summary
PTS PERFORMANCE SUMMARY Operating Revenue ($ in Millions) Net Income ($ in Millions) $410 $2,610 $2,698 $2,375 $2,039 $280 $186 $112 Q1 '21 Q1 '22 Q1 '23 Q1 '24 Q1 '21 Q1 '22 Q1 '23 Q1 '24 PENSKE AUTOMOTIVE GROUP / 29
Slide 30: PTS Fleet Growth
PTS FLEET GROWTH Managed fleet consists of trucks, tractors and trailers under lease, rental and/or maintenance contracts (Units in Thousands) 439 442* 416 360 327 327 297 271 247 231 215 205 201 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 (*As of March 31, 2024) PENSKE AUTOMOTI
Slide 31: Omni Channel & Digital
OMNI CHANNEL & DIGITAL
Slide 32: Spectrum of Retail Operations
SPECTRUM OF RETAIL OPERATIONS Customers control the purchase process and have the ability to flow across in-store and online options End-to-End Platform OEM Programs Digital Retailing In-Store CarShop USA OEM powered solutions for Enabling customers to shop In-person transaction at the brand integra
Slide 33: Digital Retailing to Modern Retailing
DIGITAL RETAILING TO MODERN RETAILING Evolved from a web tool to an integrated digital engagement platform Parallel technology to flow from online to in-store Data follows customer from web to showroom Leverage the same system if the customer starts in store Working deal alongside of custo
Slide 34: Digitizing Sales and Service
DIGITIZING SALES AND SERVICE We provide a variety of digital tools to enhance our customer’s sales and service experience in all areas of operation Hybrid purchase process through dealer websites Virtual test drives and Immersive chat and text vehicle walkarounds (AI to human-powered) Trade/Sell val
Slide 35: Leaders in Online Reputation: Lifetime Rating
LEADERS IN ONLINE REPUTATION: LIFETIME RATING PENSKE AUTOMOTIVE GROUP 4.7 Lifetime Avg. Google Star Rating SYTNER GROUP 4.4 Lifetime Avg. Google Star Rating CARSHOP 4.6 Lifetime Avg. Google Star Rating PENSKE AUTOMOTIVE GROUP / 35
Slide 36: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS
Slide 37: EBITDA & Adj. EBITDA Reconciliation
EBITDA & ADJ. EBITDA RECONCILIATION The following tables reconcile reported net income to earnings before interest, taxes, depreciation, and amortization (“EBITDA”) and adjusted EBITDA for the three months ended March 31, 2024 and 2023 Three Months Ended Change March 31, 2024 vs 2023 ($ in Millions)
Slide 38: EBITDA & Leverage Ratio Reconciliation
EBITDA & LEVERAGE RATIO RECONCILIATION ($ in Millions) Nine Months Three Months Trailing Ended Ended Twelve Months December 31, 2023 March 31, 2024 Ended March 31, 2024 Net Income $759.0 $216.2 $975.2 Add: Depreciation $107.1 $37.8 $144.9 Add: Other Interest $71.8 $21.3 $93.1 Add: Income Taxes $253.
Slide 39: EBITDA, Adj. EBITDA & Leverage Ratio Reconciliation
EBITDA, ADJ. EBITDA & LEVERAGE RATIO RECONCILIATION The following table reconciles EBITDA, Adj. EBITDA and Leverage Ratio as of December 31, 2023, 2022, 2021, 2020 and 2019 ($ in Millions) 12M ‘23 12M ‘22 12M ’21 12M ’20 12M ‘19 Net Income $1,058.6 $1,386.2 $1,192.7 $545.3 $435.1 Add: Depreciation $
Slide 40: Agency
Beginning in 2023, we transitioned some of our dealerships in the U.K. and Europe to an agency model under which these dealerships receive a fee for facilitating the sale by the manufacturer of a new vehicle but do not hold the vehicle in inventory. Vehicles sold under this agency model are counted
Slide 41: Automotive
Automotive
Penske Automotive Group — Q1 2024 Earnings Presentation on 6ix