Penske Automotive Group, Inc. (PAG) SEC Filing 10-Q Quarterly report for the period ending Sunday, September 30, 2018

PENSKE AUTOMOTIVE REPORTS RECORD THIRD QUARTER 2018 RESULTS

Record Income From Continuing Operations Increases 38.0% to $130.1 Million and

Earnings Per Share Increases 39.1% to $1.53

Record Adjusted Income From Continuing Operations Increases 25.7% to $118.5 Million

Record Adjusted Earnings Per Share From Continuing Operations Increases 27.3% to $1.40

BLOOMFIELD HILLS, MI, October 25, 2018 –  Penske Automotive Group, Inc. (NYSE:PAG), an international transportation services company consisting of franchised retail automotive dealerships, stand-alone used vehicle supercenters, heavy and medium duty retail truck dealerships, and distribution of commercial trucks and power systems,  today announced record third quarter and record nine months 2018 results.  For the three months ended September 30, 2018, income from continuing operations attributable to common shareholders increased 38.0% to $130.1 million, and related earnings per share increased 39.1% to $1.53 when compared to the same period last year. Total revenue increased 2.4% to $5.7 billion, while same-store retail revenue increased 0.2%. Excluding foreign exchange, total revenue increased 2.9%, while same-store retail revenue increased 0.5%. Foreign exchange rates negatively impacted earnings per share attributable to common shareholders by $0.01. As a result of tax reform enacted in 2017, the company’s effective tax rate in the third quarter of 2018 was 17.3% compared to 32.2% in the third quarter of 2017. 

For the three and nine months ended September 30, 2018, income and earnings per share from continuing operations attributable to common shareholders included a tax benefit of $11.6 million, or $0.14 per share. This benefit relates to the final reconciliation of the income tax benefit related to the enactment of the 2017 U.S. Tax Cuts and Jobs Act. The third quarter 2018 adjustment primarily relates to reductions in the repatriation tax. Excluding this benefit, adjusted income from continuing operations increased 25.7% to $118.5 million, and related earnings per share increased 27.3% to $1.40 for the three months ended September 30, 2018.