Penske Announces Record Results

By Staff Writer October 23, 2020

Penske Automotive Group Inc., a diversified international transportation services company, announced record results for the third quarter, including the most profitable quarter in company history. For the three months ended September 30, 2020, the company reported income from continuing operations attributable to common shareholders of $246.5 million, or $3.07 per share, compared to $116.1 million, or $1.42 per share in the prior year. Foreign exchange positively impacted earnings per share by $0.05. Revenue was flat at $6 billion. Third quarter income from continuing operations and related earnings per share include a net income tax benefit of $15.4 million, or $0.19 per share, from various U.S. and foreign tax legislation changes. Excluding this net benefit, adjusted income from continuing operations increased 99.1 percent to $231.1 million, and related earnings per share increased 102.1 percent to $2.87.

“I am very pleased to report all-time record results for Penske Automotive Group in the third quarter,” said Chairman Roger Penske. “These results were primarily driven by same-store retail automotive revenue and margin expansion, coupled with expense reductions which contributed to a 1,010 basis points decline in selling, general and administrative expenses as a percent of gross profit. Through our cost cutting efforts, we estimate that approximately $125-150 million in annualized costs were eliminated across our various businesses.

“I am particularly pleased that our strong cash flow has allowed us to significantly reduce long-term debt, lengthen maturities and reduce future annual interest expense by an estimated $17 million.”

For the nine months ended Sept. 30, the company reported income from continuing operations attributable to common shareholders of $343.1 million, or $4.27 per share, compared to $333.9 million, or $4.02 per share in the prior year. Foreign exchange positively impacted earnings per share by $0.01. Revenue was $14.6 billion compared to $17.3 billion in the same period last year. Excluding the tax benefit discussed above, adjusted income from continuing operations decreased 1.9 percent to $327.7 million, and related earnings per share increased 1.5 percent to $4.08.

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Last modified on Friday, 23 October 2020 13:49