Penske Automotive Posts Record Q4, Full-Year 2021 Results

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Penske Automotive Group (NYSE: PAG) today announced record fourth quarter and twelve-month 2021 results. During Q4, the company reported a 55.1% increase in income from continuing operations attributable to common shareholders to $310.4 million and a 59.4% increase in related earnings per share to $3.97. Adjusted income from continuing operations attributable to common shareholders increased 60.3% to $320.5 million and adjusted earnings per share increased 64.7% to $4.10. Foreign exchange positively impacted earnings per share by $0.01. (AutoInformed: Penske Automotive Group Buys Another BMW Store; Penske Automotive Posts Record Q2 Results; Penske Automotive Posts All Time Record Q1 Results)

“During the fourth quarter, our diversified business and strong execution by our team produced record revenue, earnings before taxes, net income, and earnings per share, driven by strong retail automotive and commercial truck vehicle margins, a 26% increase in same-store retail automotive gross profit, and continued strong earnings from Penske Transportation Solutions which increased 62%,” CEO Roger Penske said.

Penske went on, “For the year, I am pleased to report all-time record profitability including a 127% increase in earnings before taxes to over $1.6 billion and a 118% increase in income from continuing operations to $1.2 billion. Over the last two years we have paid down nearly $900 million in non-vehicle debt, reduced our debt to total capitalization to 26% from 46%, and improved our leverage ratio from 2.9x to 0.8x and as of December 31, 2021, returned over $530 million to shareholders through share repurchases and cash dividends.”

Full Year 2021 Operating Highlights

• Retail Automotive Unit Sales – increased 11.7%, including 11.1% on a same-store basis
• Total Revenue – All-time record revenue increased 25.0% to $25.6 billion from $20.4 billion
• Total Gross Profit – increased 39.5%; Gross Margin – increased 180 basis points to 17.4%
• Retail Automotive Gross Profit – increased 39.2%
• Retail Commercial Truck Dealership Earnings Before Taxes – increased 105.0%
• Penske Transportation Solutions Equity Earnings – increased 122.4%
• Selling, General & Administrative Expenses as a Percentage of Gross Profit – improved by 760 basis points to 66.7%

Q4 2021 Same-Store Highlights versus Q4 2020

• Retail Automotive Same-Store Revenue – increased 4.1%: New Vehicle -8.4%; Used Vehicle +21.7%; Finance & Insurance +20.3%; Service & Parts +9.7%
• Retail Automotive Same-Store Gross Profit – increased 25.6%: New Vehicle +33.4%; Used Vehicle +56.6%; Finance & Insurance +20.3%; Service & Parts +8.6%
• Commercial Truck Same-Store Gross Profit – increased 29.4%