$502.4 Million of After-Tax Charges, Including $493.1 Million of
Non-Cash Goodwill and Franchise Impairment Charges
Adjusted Loss From Continuing Operations, Excluding Charges, of $2.0
Million, or $0.02 Per Share
Cost Saving Initiatives To Date Expected to Yield Approximately $100
Million in Annualized Savings
Company in Compliance with Debt Covenants
Penske Automotive Group, Inc. (NYSE: PAG), an international automotive
retailer, today reported an adjusted fourth quarter loss from continuing
operations of $2.0 million, or $0.02 per share. This compares to
adjusted income from continuing operations of $32.0 million, or $0.34
per share, in the fourth quarter last year.
As more fully described in the attached tables, the Company recorded
after-tax charges of $502.4 million, or $5.52 per share, during the
fourth quarter of 2008. These charges include: a $493.1 million, or
$5.42 per share, non-cash intangible asset impairment charge recorded
pursuant to SFAS No. 142; $5.8 million, or $0.06 per share, of
dealership consolidation and relocation costs incurred in response to
market conditions; $2.5 million, or $0.03 per share, of severance costs
incurred in connection with workforce reductions; and $1.0 million, or
$0.01 per share, of other asset impairment charges. As part of the
Company’s ongoing cost saving and expense reduction initiatives, the
Company’s worldwide workforce was reduced by approximately 10% during
2008.
Retail unit sales decreased 22.5% in the quarter. Total revenue was $2.2
billion compared to $3.0 billion in the same period last year. The
decline in revenue was driven principally by lower vehicle sales and
changes in foreign exchange rates. Same-store retail revenues decreased
by 33.5%, with same-store new units declining 34% and used units
declining 11%. Despite the broad weakness in the new and used vehicle
market, the Company’s service and parts business performed well,
declining 1.5% on a same-store basis in the fourth quarter excluding the
impact of exchange rates.
Commenting on the fourth quarter, Penske Automotive Group Chairman Roger
Penske said, “The fourth quarter was one of the most challenging periods
on record in the automotive industry. The lack of liquidity in worldwide
credit markets and resulting economic effects caused a decrease in
consumer confidence, and impacted the willingness and ability of
consumers to purchase automobiles. As a result, new vehicle industry
sales declined 35% and 27%, respectively, during the quarter in the
United States and United Kingdom.”
Mr. Penske continued, “As business conditions deteriorated during the
fourth quarter, the Company accelerated its cost reduction program. To
date, the Company has initiated actions which it expects will result in
annualized cost savings of approximately $100 million. As of the end of
the year, our liquidity remained strong, including cash and availability
under our long-term credit agreements of approximately $330 million. In
addition, we elected to pay down $10 million of debt incurred in
connection with our June 2008 acquisition of 9% of Penske Truck Leasing.
It is important to note that the Company is in compliance will all
financial covenants under its debt agreements.”
For the year ended December 31, 2008, revenues were $11.6 billion, which
compare to $12.8 billion in the prior year. The loss from continuing
operations and net loss for the year ended December 31, 2008, were
$403.6 million, or $4.32 per share, and $411.9 million, or $4.41 per
share, respectively. Adjusted income from continuing operations for the
year was $101.6 million, or $1.09 per share, compared to adjusted income
from continuing operations of $143.7 million, or $1.52 per share, in the
prior year. A reconciliation of adjusted income from continuing
operations and adjusted net income can be found in the tables contained
in this press release.
Stock Repurchase Authority
The Company has repurchased 450,000 shares of its stock for an aggregate
$3.6 million during the fourth quarter, bringing aggregate expenditures
under the Company’s $150 million authorization to $53.7 million. The
Company currently has approximately 91.4 million shares outstanding, and
has an additional $96.3 million of repurchase capacity outstanding under
the program.
smart USA
The Company’s smart USA distribution business completed a successful
first year, delivering 27,054 vehicles and generating more than $400
million in revenue. In 2008, smart fortwo sales in the United States
ranked third globally, and represented 18% of smart’s worldwide sales.
Guidance
Based on the significant volatility in the automotive industry and
worldwide credit markets and their impact on consumer confidence and the
overall economy, management has determined that it is not feasible to
provide reliable earnings guidance at this time.
Conference Call
Penske Automotive will host a conference call discussing financial
results relating to the fourth quarter of 2008 on February 17, 2009, at 2:00
p.m. EST. To listen to the conference call, participants must
dial (800) 230-1096 [International, please dial (612) 332-0932].
The call will be simultaneously broadcast over the Internet through the
Penske Automotive Group website at www.penskeautomotive.com.
About Penske Automotive
Penske Automotive Group, Inc., headquartered in Bloomfield Hills,
Michigan, operates 304 retail automotive franchises, representing 40
different brands and 27 collision repair centers. Penske Automotive,
which sells new and previously owned vehicles, finance and insurance
products and replacement parts, and offers maintenance and repair
services on all brands it represents, has 156 franchises in 19 states
and Puerto Rico and 148 franchises located outside the United States,
primarily in the United Kingdom. Penske Automotive is also the exclusive
distributor of the smart fortwo through its wholly-owned subsidiary
smart USA Distributor LLC. smart USA supports 75 smart retail centers in
the United States. Penske Automotive is a member of the Fortune 200 and
Russell 1000 and has more than 14,000 employees. smart and fortwo are
registered trademarks of Daimler AG.
Caution Concerning Forward Looking
Statements
Statements in this press release may involve forward-looking statements,
including forward-looking statements regarding Penske Automotive Group,
Inc.’s future sales and earnings potential and its ability to reduce its
variable expenses. Actual results may vary materially because of risks
and uncertainties, including external factors such as consumer credit
conditions, macro-economic factors, interest rate fluctuations, changes
in consumer spending and other factors over which management has no
control. These forward-looking statements should be evaluated together
with additional information about Penske Automotive’s business, markets,
conditions and other uncertainties which could affect Penske
Automotive’s future performance. These risks and uncertainties are
addressed in Penske Automotive’s Form 10-K for the year ended December
31, 2007, and its other filings with the Securities and Exchange
Commission (“SEC”). This press release speaks only as of its date, and
Penske Automotive disclaims any duty to update the information herein.
This release contains certain non-GAAP financial measures as defined
under SEC rules, such as adjusted income (loss) from continuing
operations and related earnings per share, which exclude certain items
disclosed in the release. The Company has reconciled these measures to
the most directly comparable GAAP measures in the release. The Company
believes that these non-GAAP financial measures improve the transparency
of the Company's disclosure and the period-to-period comparability of
the Company's results from operations.
|
|
|
|
|
PENSKE AUTOMOTIVE GROUP, INC.
|
|
Consolidated Statements of Income
|
|
(Amounts In Thousands, Except Per Share Data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
|
|
2008
|
|
2007
|
|
Revenues:
|
|
|
|
|
|
New Vehicle
|
|
$1,043,877
|
|
|
$1,658,626
|
|
|
Used Vehicle
|
|
528,499
|
|
|
729,327
|
|
|
Finance and Insurance, Net
|
|
42,459
|
|
|
67,165
|
|
|
Service and Parts
|
|
324,590
|
|
|
346,674
|
|
|
Distribution
|
|
101,051
|
|
|
- -
|
|
|
Fleet and Wholesale Vehicle
|
|
117,466
|
|
|
247,668
|
|
|
Total Revenues
|
|
2,157,942
|
|
|
3,049,460
|
|
|
Cost of Sales:
|
|
|
|
|
|
New Vehicle
|
|
964,688
|
|
|
1,518,649
|
|
|
Used Vehicle
|
|
492,836
|
|
|
672,088
|
|
|
Service and Parts
|
|
147,513
|
|
|
152,104
|
|
|
Distribution
|
|
85,951
|
|
|
- -
|
|
|
Fleet and Wholesale Vehicle
|
|
118,905
|
|
|
248,518
|
|
|
Total Cost of Sales
|
|
1,809,893
|
|
|
2,591,359
|
|
|
Gross Profit
|
|
348,049
|
|
|
458,101
|
|
|
SG&A Expenses
|
|
311,263
|
|
|
368,848
|
|
|
Depreciation and Amortization
|
|
13,113
|
|
|
12,789
|
|
|
Unusual Items
|
|
657,589
|
|
|
6,267
|
|
|
Operating Income (Loss)
|
|
(633,916
|
)
|
|
70,197
|
|
|
Floor Plan Interest Expense
|
|
(15,714
|
)
|
|
(19,806
|
)
|
|
Other Interest Expense
|
|
(14,004
|
)
|
|
(11,936
|
)
|
|
Equity in Earnings of Affiliates
|
|
3,191
|
|
|
901
|
|
|
Income (Loss) from Continuing Operations Before
|
|
|
|
|
|
|
|
Income Taxes and Minority Interests
|
|
(660,443
|
)
|
|
39,356
|
|
|
Income Taxes
|
|
156,131
|
|
|
(11,334
|
)
|
|
Minority Interests
|
|
(81
|
)
|
|
(445
|
)
|
|
Income (Loss) from Continuing Operations
|
|
(504,393
|
)
|
|
27,577
|
|
|
Income (Loss) from Discontinued Operations, Net of Tax
|
|
(5,517
|
)
|
|
1,831
|
|
|
Net Income (Loss)
|
|
($509,910
|
)
|
|
$29,408
|
|
|
Income (Loss) from Continuing Operations Per Diluted Share
|
|
($5.55
|
)
|
|
$0.29
|
|
|
Income (Loss) Per Diluted Share
|
|
($5.61
|
)
|
|
$0.31
|
|
|
Diluted Weighted Average Shares Outstanding
|
|
90,961
|
|
|
94,677
|
|
|
|
|
|
|
PENSKE AUTOMOTIVE GROUP, INC.
|
|
Consolidated Statements of Income
|
|
(Amounts In Thousands, Except Per Share Data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
|
|
|
|
2008
|
|
2007
|
|
Revenues:
|
|
|
|
|
|
New Vehicle
|
|
$5,947,809
|
|
|
$6,941,663
|
|
|
Used Vehicle
|
|
2,846,929
|
|
|
3,096,557
|
|
|
Finance and Insurance, Net
|
|
259,478
|
|
|
286,797
|
|
|
Service and Parts
|
|
1,403,785
|
|
|
1,393,153
|
|
|
Distribution
|
|
348,809
|
|
|
- -
|
|
|
Fleet and Wholesale Vehicle
|
|
839,535
|
|
|
1,073,939
|
|
|
Total Revenues
|
|
11,646,345
|
|
|
12,792,109
|
|
|
Cost of Sales:
|
|
|
|
|
|
New Vehicle
|
|
5,460,656
|
|
|
6,357,716
|
|
|
Used Vehicle
|
|
2,632,959
|
|
|
2,854,294
|
|
|
Service and Parts
|
|
623,258
|
|
|
614,396
|
|
|
Distribution
|
|
294,535
|
|
|
- -
|
|
|
Fleet and Wholesale Vehicle
|
|
843,159
|
|
|
1,066,823
|
|
|
Total Cost of Sales
|
|
9,854,567
|
|
|
10,893,229
|
|
|
Gross Profit
|
|
1,791,778
|
|
|
1,898,880
|
|
|
SG&A Expenses
|
|
1,475,648
|
|
|
1,502,824
|
|
|
Depreciation and Amortization
|
|
53,822
|
|
|
50,027
|
|
|
Unusual Items
|
|
661,968
|
|
|
6,267
|
|
|
Operating Income (Loss)
|
|
(399,660
|
)
|
|
339,762
|
|
|
Floor Plan Interest Expense
|
|
(64,495
|
)
|
|
(73,432
|
)
|
|
Other Interest Expense
|
|
(54,870
|
)
|
|
(55,900
|
)
|
|
Equity in Earnings of Affiliates
|
|
16,513
|
|
|
4,084
|
|
|
Debt Redemption Charge
|
|
- -
|
|
|
(18,634
|
)
|
|
Income (Loss) from Continuing Operations Before
|
|
|
|
|
|
Income Taxes and Minority Interests
|
|
(502,512
|
)
|
|
195,880
|
|
|
Income Taxes
|
|
100,020
|
|
|
(66,943
|
)
|
|
Minority Interests
|
|
(1,133
|
)
|
|
(1,972
|
)
|
|
Income (Loss) from Continuing Operations
|
|
(403,625
|
)
|
|
126,965
|
|
|
Income (Loss) from Discontinued Operations, Net of Tax
|
|
(8,276
|
)
|
|
774
|
|
|
Net Income (Loss)
|
|
($411,901
|
)
|
|
$127,739
|
|
|
Income (Loss) from Continuing Operations Per Diluted Share
|
|
($4.32
|
)
|
|
$1.34
|
|
|
Diluted EPS
|
|
($4.41
|
)
|
|
$1.35
|
|
|
Diluted Weighted Average Shares Outstanding
|
|
93,398
|
|
|
94,558
|
|
|
|
|
|
|
|
|
PENSKE AUTOMOTIVE GROUP, INC.
|
|
Consolidated Condensed Balance Sheets
|
|
(Amounts In Thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/08
|
|
12/31/07
|
|
Assets
|
|
|
|
|
|
Cash and Cash Equivalents
|
|
$20,109
|
|
$14,798
|
|
Accounts Receivable, Net
|
|
294,567
|
|
445,772
|
|
Inventories
|
|
1,593,267
|
|
1,667,522
|
|
Other Current Assets
|
|
88,828
|
|
65,655
|
|
Assets Held for Sale
|
|
9,739
|
|
106,983
|
|
Total Current Assets
|
|
2,006,510
|
|
2,300,730
|
|
Property and Equipment, Net
|
|
662,493
|
|
616,201
|
|
Intangibles
|
|
974,649
|
|
1,666,741
|
|
Other Assets
|
|
319,509
|
|
84,881
|
|
Total Assets
|
|
$3,963.161
|
|
$4,668,553
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
Floor Plan Notes Payable
|
|
$968,873
|
|
$1,060,503
|
|
Floor Plan Notes Payable – Non-Trade
|
|
511,357
|
|
475,188
|
|
Accounts Payable
|
|
178,811
|
|
264,473
|
|
Accrued Expenses
|
|
196,274
|
|
210,049
|
|
Current Portion Long-Term Debt
|
|
11,305
|
|
14,522
|
|
Liabilities Held for Sale
|
|
13,492
|
|
71,304
|
|
Total Current Liabilities
|
|
1,880,112
|
|
2,096,039
|
|
Long-Term Debt
|
|
1,087,932
|
|
830,106
|
|
Other Long-Term Liabilities
|
|
211,391
|
|
320,949
|
|
Total Liabilities
|
|
3,179,435
|
|
3,247,094
|
|
Stockholders’ Equity
|
|
783,726
|
|
1,421,459
|
|
Total Liabilities and Stockholders’ Equity
|
|
$3,963,161
|
|
$4,668,553
|
|
|
|
|
|
|
|
PENSKE AUTOMOTIVE GROUP, INC.
|
|
Selected Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
Twelve Months
|
|
|
|
2008
|
|
2007
|
|
2008
|
|
2007
|
|
Total Retail Units:
|
|
|
|
|
|
|
|
|
|
New Retail
|
|
31,387
|
|
|
45,074
|
|
|
171,872
|
|
|
193,232
|
|
|
Used Retail
|
|
21,622
|
|
|
23,306
|
|
|
101,769
|
|
|
100,120
|
|
|
Total Retail
|
|
53,009
|
|
|
68,380
|
|
|
273,641
|
|
|
293,352
|
|
|
|
|
|
|
|
|
|
|
|
|
smart Wholesale Units
|
|
7,725
|
|
|
- -
|
|
|
27,054
|
|
|
- -
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-Store Retail Units:
|
|
|
|
|
|
|
|
|
|
New Same-Store Retail
|
|
29,172
|
|
|
44,454
|
|
|
151,964
|
|
|
181,940
|
|
|
Used Same-Store Retail
|
|
20,618
|
|
|
23,054
|
|
|
95,187
|
|
|
95,240
|
|
|
Total Same-Store Retail
|
|
49,790
|
|
|
67,508
|
|
|
247,151
|
|
|
277,180
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-Store Retail Revenue:
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
$983,462
|
|
|
$1,631,736
|
|
|
$5,366,317
|
|
|
$6,567,806
|
|
|
Used Vehicles
|
|
502,163
|
|
|
722,198
|
|
|
2,645,535
|
|
|
2,958,901
|
|
|
Finance and Insurance, Net
|
|
40,680
|
|
|
66,389
|
|
|
240,325
|
|
|
276,069
|
|
|
Service and Parts
|
|
308,486
|
|
|
340,155
|
|
|
1,295,768
|
|
|
1,330,112
|
|
|
Total Same-Store Retail
|
|
$1,834,791
|
|
|
$2,760,478
|
|
|
$9,547,945
|
|
|
$11,132,888
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-Store Retail Revenue Growth:
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
(39.7
|
%)
|
|
1.1
|
%
|
|
(18.3
|
%)
|
|
5.4
|
%
|
|
Used Vehicles
|
|
(30.5
|
%)
|
|
9.9
|
%
|
|
(10.6
|
%)
|
|
14.6
|
%
|
|
Finance and Insurance, Net
|
|
(38.7
|
%)
|
|
10.8
|
%
|
|
(12.9
|
%)
|
|
9.2
|
%
|
|
Service and Parts
|
|
(9.3
|
%)
|
|
5.5
|
%
|
|
(2.6
|
%)
|
|
7.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Mix:
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
48.4
|
%
|
|
54.4
|
%
|
|
51.1
|
%
|
|
54.3
|
%
|
|
Used Vehicles
|
|
24.5
|
%
|
|
23.9
|
%
|
|
24.4
|
%
|
|
24.2
|
%
|
|
Finance and Insurance, Net
|
|
2.0
|
%
|
|
2.2
|
%
|
|
2.2
|
%
|
|
2.2
|
%
|
|
Service and Parts
|
|
15.0
|
%
|
|
11.4
|
%
|
|
12.1
|
%
|
|
10.9
|
%
|
|
Distribution
|
|
4.7
|
%
|
|
--
|
%
|
|
3.0
|
%
|
|
--
|
%
|
|
Fleet and Wholesale
|
|
5.4
|
%
|
|
8.1
|
%
|
|
7.2
|
%
|
|
8.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Average Retail Selling Price:
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
$33,258
|
|
|
$36,798
|
|
|
$34,606
|
|
|
$35,924
|
|
|
Used Vehicles
|
|
24,443
|
|
|
31,294
|
|
|
27,974
|
|
|
30,929
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin
|
|
16.1
|
%
|
|
15.0
|
%
|
|
15.4
|
%
|
|
14.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Retail Gross Margin – by Product:
|
|
|
|
|
|
|
|
|
|
New Vehicles
|
|
7.6
|
%
|
|
8.4
|
%
|
|
8.2
|
%
|
|
8.4
|
%
|
|
Used Vehicles
|
|
6.7
|
%
|
|
7.8
|
%
|
|
7.5
|
%
|
|
7.8
|
%
|
|
Service and Parts
|
|
54.6
|
%
|
|
56.0
|
%
|
|
55.6
|
%
|
|
55.9
|
%
|
|
|
|
|
|
|
PENSKE AUTOMOTIVE GROUP, INC.
|
|
Selected Data (Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
Twelve Months
|
|
|
2008
|
|
2007
|
|
2008
|
|
2007
|
|
Gross Profit per Retail Transaction:
|
|
|
|
|
|
|
|
|
New Vehicles
|
$2,523
|
|
|
$3,106
|
|
|
$2,834
|
|
|
$3,022
|
|
|
Used Vehicles
|
1,649
|
|
|
2,456
|
|
|
2,102
|
|
|
2,420
|
|
|
Finance and Insurance
|
801
|
|
|
982
|
|
|
948
|
|
|
978
|
|
|
|
|
|
|
|
|
|
|
|
Brand Mix:
|
|
|
|
|
|
|
|
|
BMW
|
23
|
%
|
|
22
|
%
|
|
22
|
%
|
|
22
|
%
|
|
Toyota / Lexus
|
19
|
%
|
|
20
|
%
|
|
19
|
%
|
|
20
|
%
|
|
Honda / Acura
|
15
|
%
|
|
14
|
%
|
|
15
|
%
|
|
15
|
%
|
|
Mercedes Benz
|
10
|
%
|
|
10
|
%
|
|
10
|
%
|
|
11
|
%
|
|
Audi
|
9
|
%
|
|
8
|
%
|
|
9
|
%
|
|
8
|
%
|
|
Land Rover
|
3
|
%
|
|
5
|
%
|
|
4
|
%
|
|
5
|
%
|
|
Ferrari / Maserati
|
3
|
%
|
|
4
|
%
|
|
3
|
%
|
|
3
|
%
|
|
Porsche
|
3
|
%
|
|
3
|
%
|
|
3
|
%
|
|
4
|
%
|
|
Other
|
15
|
%
|
|
14
|
%
|
|
15
|
%
|
|
12
|
%
|
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
Premium
|
65
|
%
|
|
66
|
%
|
|
65
|
%
|
|
66
|
%
|
|
Foreign
|
31
|
%
|
|
29
|
%
|
|
30
|
%
|
|
29
|
%
|
|
Domestic Big 3
|
4
|
%
|
|
5
|
%
|
|
5
|
%
|
|
5
|
%
|
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
Revenue Mix:
|
|
|
|
|
|
|
|
|
U.S.
|
69
|
%
|
|
64
|
%
|
|
64
|
%
|
|
63
|
%
|
|
International
|
31
|
%
|
|
36
|
%
|
|
36
|
%
|
|
37
|
%
|
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
Rent Expense
|
$39,673
|
|
|
$39,321
|
|
|
$160,100
|
|
|
$150,573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/08
|
|
12/31/07
|
|
Debt to Total Capital Ratio
|
|
58
|
%
|
|
37
|
%
|
|
Adjusted Debt to Total Capital Ratio (excl. intangible impairment
charge)
|
|
46
|
%
|
|
37
|
%
|
|
|
|
|
|
|
|
|
|
|
Debt Covenant Compliance (U.S.):
|
|
|
|
|
|
Current Ratio (min 1.00:1)
|
|
1.07:1
|
|
|
1.10:1
|
|
|
Fixed Charge Coverage Ratio (min 1.00:1)
|
|
1.24:1
|
|
|
1.57:1
|
|
|
Ratio of Non-Floorplan Debt to Stockholders’ Equity (max 1.30:1)
|
|
0.86:1
|
|
|
0.61:1
|
|
|
Funded Debt to EBITDA Ratio (max 2.50:1)
|
|
1.26:1
|
|
|
0.34:1
|
|
|
|
|
|
|
|
|
|
|
|
Debt Covenant Compliance (U.K.):
|
|
|
|
|
|
Capital Expenditures (max £50 million)
|
|
£29.5
|
|
£6.2
|
|
EBITAR to Fixed Charges (min 1.40:1)
|
|
1.76x
|
|
2.02x
|
|
Debt to EBITAR (max 3.25:1)
|
|
1.45x
|
|
0.80x
|
|
|
|
|
|
PENSKE AUTOMOTIVE GROUP, INC.
|
|
Non-GAAP Reconciliation
|
|
($’s in Millions)
|
|
|
|
|
|
|
|
|
|
Adjusted Income from Continuing Operations:
|
|
|
|
2008
|
|
|
|
Fourth Quarter
|
|
Twelve Months
|
|
|
|
Net
|
|
EPS
|
|
Net
|
|
EPS
|
|
Loss from Continuing Operations
|
|
($504.4
|
)
|
|
($5.55
|
)
|
|
($403.6
|
)
|
|
($4.32
|
)
|
|
SFAS No. 142 Intangible Impairment
|
|
493.1
|
|
|
5.42
|
|
|
493.1
|
|
|
5.28
|
|
|
Dealership Consolidation Costs
|
|
5.8
|
|
|
0.06
|
|
|
5.8
|
|
|
0.06
|
|
|
Severance
|
|
2.5
|
|
|
0.03
|
|
|
3.8
|
|
|
0.04
|
|
|
Other
|
|
1.0
|
|
|
0.01
|
|
|
2.5
|
|
|
0.03
|
|
|
Adjusted Income (Loss) from
Continuing Operations
|
|
($2.0
|
)
|
|
($0.02
|
)
|
|
$101.6
|
|
|
$1.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2007
|
|
|
|
Fourth Quarter
|
|
Twelve Months
|
|
|
|
Net
|
|
EPS
|
|
Net
|
|
EPS
|
|
Income from Continuing Operations
|
|
$27.6
|
|
|
$0.29
|
|
|
$127.0
|
|
|
$1.34
|
|
|
Impairments
|
|
4.4
|
|
|
0.05
|
|
|
4.4
|
|
|
0.05
|
|
|
Senior Subordinated Note Redemption
|
|
--
|
|
|
--
|
|
|
12.3
|
|
|
0.13
|
|
|
Adjusted Income from Continuing
Operations
|
|
$32.0
|
|
|
$0.34
|
|
|
$143.7
|
|
|
$1.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of Adjusted Debt to Total Capital Ratio:
|
|
|
|
|
|
|
|
|
|
12/31/08
|
|
12/31/07
|
|
|
|
|
|
|
|
|
|
|
|
Reported Debt
|
|
$1,099.2
|
|
|
$844.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Stockholders’ Equity
|
|
$783.7
|
|
|
$1,421.5
|
|
|
Equity Impact of Intangible Impairment
|
|
493.1
|
|
|
--
|
|
|
Adjusted Stockholders’ Equity
|
|
$1,276.8
|
|
|
$1,421.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Total Capital
|
|
$1,882.9
|
|
|
$2,266.1
|
|
|
Equity Impact of Intangible Impairment
|
|
493.1
|
|
|
--
|
|
|
Adjusted Total Capital
|
|
$2,376.0
|
|
|
$2,266.1
|
|
Penske Automotive Group, Inc.
Bob O’Shaughnessy
Chief
Financial Officer
248-648-2800
boshaughnessy@penskeautomotive.com
or
Anthony
R. Pordon
Senior Vice President
248-648-2540
tpordon@penskeautomotive.com
