PENSKE AUTOMOTIVE GROUP REPORTS RECORD RESULTS

File This autumn Income and Earnings Per Share

This autumn Income Elevated 11% to $7.0 Billion; Earnings Per Share Elevated 6% to $4.21

Full Yr 2022 File Outcomes for Income, Earnings Earlier than Taxes, Earnings From Persevering with Operations, and Earnings Per Share

Full Yr 2022 Income Elevated 9% to $27.8 Billion; Earnings Earlier than Taxes Elevated 16% to $1.9 Billion

Full Yr 2022 Earnings From Persevering with Operations Elevated 16% to $1.4 Billion

Full Yr 2022 Earnings Per Share Elevated 25% to $18.55

Repurchased 8.2 Million Shares of Widespread Inventory for $886.5 Million Throughout 2022

BLOOMFIELD HILLS, Mich., Feb. 8, 2023 /PRNewswire/ — Penske Automotive Group, Inc. (NYSE: PAG), a diversified worldwide transportation companies firm and one of many world’s premier automotive and industrial truck retailers, as we speak introduced fourth quarter and twelve months 2022 outcomes. For the quarter, income elevated 11% to $7.0 billion, and associated earnings per share elevated 6% to $4.21 from $3.97 when in comparison with the identical interval of 2021. Overseas forex trade negatively impacted income by $380.9 million and earnings per share by $0.09. Excluding the affect from overseas forex trade, revenues elevated 17%, and earnings per share elevated roughly 8%.

Fourth Quarter 2022 Working Highlights In comparison with Fourth Quarter 2021

(Proportion Change Excluding Overseas Forex Alternate Proven in Parenthesis)

• Retail Automotive Similar-Retailer Income – elevated 4% (+10%)
• New Automobile +13% (+18%); Used Automobile -9% (-2%); Finance & Insurance coverage -1% (+4%); Service & Components +6% (+11%)
• Retail Automotive Similar-Retailer Gross Revenue – decreased 5% (flat)
• New Automobile +4% (+9%); Used Automobile -43% (-39%); Finance & Insurance coverage -1% (+4%); Service & Components +6% (+11%)
• Retail Business Truck Similar-Retailer Income – elevated 33%
• New Automobile +53%; Used Automobile -40%; Finance & Insurance coverage -19%; Service & Components +16%

Commenting on the Firm’s efficiency, Chair and CEO Roger Penske stated, “Our worldwide diversified transportation companies firm produced file leads to 2022. We retailed greater than 447,000 new and used automobiles by means of our retail automotive operations and over 20,000 new and used industrial vehicles by means of our industrial truck dealerships whereas our funding in Penske Transportation Options continues to learn from the expansion in its car fleet. I’m additionally happy to report a robust fourth quarter pushed by demand for brand spanking new automobiles in each our automotive and industrial truck dealerships coupled with continued service and elements income development and expense management. On a same-store foundation, fourth quarter retail automotive new unit gross sales elevated 11% and industrial truck new models elevated 36% whereas service and elements income elevated 6% for retail automotive and 16% for industrial vehicles.”

For the twelve months ended December 31, 2022, income elevated 9% to $27.8 billion. Earnings from persevering with operations earlier than taxes elevated 16% to $1,859.2 million from $1,607.7 million, earnings from persevering with operations attributable to widespread stockholders elevated 16% to $1,380.0 million from $1,186.5 million, and associated earnings per share elevated 25% to $18.55 from $14.88 when in comparison with the identical interval final 12 months. Overseas forex trade negatively impacted income by $1.0 billion, earnings from persevering with operations earlier than taxes by $38.0 million, earnings from persevering with operations attributable to widespread stockholders by $29.4 million, and earnings per share by $0.40. Excluding the affect from overseas forex trade, revenues elevated 13%, earnings from persevering with operations earlier than taxes elevated 18%, earnings from persevering with operations attributable to widespread stockholders elevated 19%, and earnings per share elevated roughly 27%.

Full Yr 2022 Working Highlights In comparison with Full Yr 2021

(Proportion Change Excluding Overseas Forex Alternate Proven in Parenthesis)

• Retail Automotive Similar-Retailer Income – elevated 1% (+6%)
• New Automobile -3% (+1%); Used Automobile +2% (+8%); Finance & Insurance coverage +5% (+10%); Service & Components +7% (+11%)
• Retail Automotive Similar-Retailer Gross Revenue – elevated 2% (+7%)
• New Automobile +14% (+18%); Used Automobile -21% (-17%); Finance & Insurance coverage +5% (+10%); Service & Components +5% (+9%)
• Retail Business Truck Similar-Retailer Income – elevated 29%
• New Automobile +37%; Used Automobile -5%; Finance & Insurance coverage +7%; Service & Components +22%

Retail Automotive Dealerships

For the three months ended December 31, 2022, whole retail automotive income elevated 8% to $5.9 billion, together with a 4% enhance on a same-store foundation. Whole retail automotive gross revenue decreased 1% to $1.0 billion, together with a 5% lower on a same-store foundation. Excluding the affect from overseas forex trade, whole retail automotive income elevated 14% (same-store +10%) and whole retail automotive gross revenue elevated 4% (same-store flat).

Retail Business Truck Dealerships

As of December 31, 2022, Premier Truck Group operated 39 North American retail industrial truck places. For the three months ended December 31, 2022, income elevated 40% to $960.8 million, same-store income elevated 33% to $887.4 million, and earnings earlier than taxes elevated 14% to $51.1 million when in comparison with the identical interval in 2021. For the twelve months ended December 31, 2022, income elevated 44% to $3.5 billion, same-store income elevated 29% to $2.8 billion, and earnings earlier than taxes elevated 34% to $214.7 million when in comparison with the identical interval in 2021.

Penske Transportation Options Funding

Penske Transportation Options (“PTS”) is a number one supplier of full-service truck leasing, truck rental, contract upkeep, and logistics companies. Penske Automotive Group has a 28.9% possession curiosity in PTS and accounts for its possession curiosity utilizing the fairness methodology of accounting. For the three and twelve months ended December 31, 2022, the Firm recorded $99.4 million and $490.0 million in earnings in comparison with $91.3 million and $365.8 million for a similar intervals in 2021, representing will increase of 9% and 34%, respectively. Throughout the fourth quarter, PTS continued to broaden its managed fleet with over 414,500 vehicles, tractors, and trailers below lease, rental, and/or upkeep contracts. The rise in earnings was principally pushed by elevated demand for PTS’ full-service leasing, rental and logistics companies, and remarketing of used vehicles.

Company Improvement and Capital Allocation

For the twelve months ended December 31, 2022, the Firm added roughly $1.3 billion in annualized income consisting of 19 retail automotive franchises, two open factors, and 4 full-service dealerships for industrial vehicles.

Primarily based on the Firm’s sturdy earnings and money circulation, the Board of Administrators has elevated the quarterly dividend, most just lately approving a 7% enhance within the quarterly dividend to $0.61 per share. Throughout the twelve months ended December 31, 2022, the Firm repurchased 8.2 million shares of widespread inventory for about $886.5 million. From January 1, 2023, by means of February 7, 2023, the Firm repurchased an extra 0.6 million shares for an combination buy worth of $70.7 million below our securities repurchase program.

Convention Name

Penske Automotive Group will host a convention name discussing monetary outcomes referring to the fourth quarter of 2022 on Wednesday, February 8, 2023, at 2:00 p.m. Japanese Normal Time. To take heed to the convention name, contributors should dial (877) 336-4436 [International, please dial (234) 720-6984] utilizing entry code 440822. The decision may also be concurrently broadcast over the Web, obtainable by means of the Traders part of the Penske Automotive Group web site. Moreover, an investor presentation referring to the fourth quarter 2022 monetary outcomes has been posted to the Traders part of the Firm’s web site. To entry the presentation or to take heed to the Firm’s webcast, please check with www.penskeautomotive.com.

About Penske Automotive

Penske Automotive Group, Inc., (NYSE: PAG) headquartered in Bloomfield Hills, Michigan, is a diversified worldwide transportation companies firm and one of many world’s premier automotive and industrial truck retailers. PAG operates dealerships in the US, the United Kingdom, Canada, Germany, Italy, and Japan and is among the largest retailers of economic vehicles in North America for Freightliner. PAG additionally distributes and retails industrial automobiles, diesel and fuel engines, energy programs, and associated elements and companies principally in Australia and New Zealand. PAG employs over 26,500 folks worldwide. Moreover, PAG owns 28.9% of Penske Transportation Options (“PTS”), a enterprise that employs over 41,500 folks worldwide, manages one of many largest, most complete and fashionable trucking fleets in North America with over 414,500 vehicles, tractors, and trailers below lease, rental, and/or upkeep contracts and offers modern transportation, provide chain, and expertise options to its clients. PAG is a member of the Fortune 500, Russell 1000, and Russell 3000 indexes. For added data, go to the Firm’s web site at www.penskeautomotive.com.

Non-GAAP Monetary Measures

This launch accommodates sure non-GAAP monetary measures as outlined below SEC guidelines, equivalent to adjusted earnings from persevering with operations, adjusted earnings per share, earnings earlier than curiosity, taxes, depreciation, and amortization (“EBITDA”), adjusted EBITDA, and leverage ratio. The Firm has reconciled these measures to probably the most instantly comparable GAAP measures within the launch. The Firm believes that these extensively accepted measures of working profitability enhance the transparency of the Firm’s disclosures and supply a significant presentation of the Firm’s outcomes from its core enterprise operations excluding the affect of things not associated to the Firm’s ongoing core enterprise operations and enhance the period-to-period comparability of the Firm’s outcomes from its core enterprise operations. These non-GAAP monetary measures usually are not substitutes for GAAP monetary outcomes and may solely be thought of along with the Firm’s monetary data that’s introduced in accordance with GAAP.

Warning Regarding Ahead Wanting Statements

Statements on this press launch might contain forward-looking statements, together with forward-looking statements concerning Penske Automotive Group, Inc.’s monetary efficiency and future plans. Precise outcomes might fluctuate materially due to dangers and uncertainties which might be tough to foretell. These dangers and uncertainties embody, amongst others, these associated to macro-economic, geo-political and trade circumstances and occasions, together with their affect on new and used car gross sales, the provision of shopper credit score, adjustments in shopper demand, shopper confidence ranges, gasoline costs, private discretionary spending ranges, rates of interest, and unemployment charges; our capability to acquire automobiles and elements from our producers, particularly in mild of provide chain disruptions on account of pure disasters, the scarcity of microchips or different parts, the COVID-19 pandemic, the battle in Ukraine, challenges in sourcing labor, or different disruptions; adjustments within the retail mannequin both from direct gross sales by producers, a transition to an company mannequin of gross sales, gross sales by on-line rivals, or from the growth of electrical automobiles; the continued impact of COVID-19 on the worldwide financial system, together with our capability to react successfully to altering enterprise circumstances in mild of the COVID-19 pandemic; the speed of inflation, together with its affect on car affordability; adjustments in rates of interest and overseas forex trade charges; our capability to consummate and combine acquisitions; with respect to PTS, adjustments within the monetary well being of its clients, labor strikes or work stoppages by its workers, a discount in PTS’ asset utilization charges, continued availability from truck producers and suppliers of automobiles and elements for its fleet, adjustments in values of used vehicles which impacts PTS’ profitability on truck gross sales and regulatory dangers and associated compliance prices; our capability to comprehend returns on our important capital funding in new and upgraded dealership services; our capability to navigate a quickly altering automotive and truck panorama; our capability to reply to new or enhanced laws in each our home and worldwide markets referring to automotive dealerships and automobiles gross sales, together with these associated to emissions requirements, in addition to adjustments in shopper sentiment referring to industrial truck gross sales which will hinder our or PTS’ capability to keep up, purchase, promote, or function vehicles; the success of our distribution of economic automobiles, engines, and energy programs; pure disasters; recall initiatives or different disruptions that interrupt the provision of automobiles or elements to us; the result of authorized and administrative issues, and different components over which administration has restricted management. These forward-looking statements needs to be evaluated along with extra details about Penske Automotive Group’s enterprise, markets, circumstances, dangers, and different uncertainties, which might have an effect on Penske Automotive Group’s future efficiency. The dangers and uncertainties mentioned above usually are not exhaustive and extra danger and uncertainties are addressed in Penske Automotive Group’s Type 10-Okay for the 12 months ended December 31, 2021, Type 10-Q for the quarterly intervals ended March 31, 2022, June 30, 2022, and September 30, 2022, and its different filings with the Securities and Alternate Fee (“SEC”). This press launch speaks solely as of its date, and Penske Automotive Group disclaims any responsibility to replace the knowledge herein.