Penske Automotive Group in Bloomfield Township announced all-time record quarterly results for the first quarter (Q1) of 2022, reporting a 102 percent increase in income from continuing operations attributable to common shareholders to $367.9 million and a 111 percent increase in related earnings per share to $4.76.
Foreign exchange negatively impacted earnings per share by $0.05.
“I am pleased to report all-time record quarterly results for the first quarter of 2022 as earnings before taxes, net income, and earnings per share more than doubled when compared to the first quarter of 2021,” says Roger Penske, chair and CEO of Penske Automotive Group. “In addition to the strong financial performance, so far this year we repurchased $184.1 million of common stock and added approximately $665 million in annualized revenue through acquisitions and a new open point year-to-date.
“Our results were driven by strong performance across the entire business as earnings before taxes increased by 93 percent from retail automotive, 113 percent from North American commercial truck retail, and 75 percent from Penske Australia. Additionally, earnings from our investment in Penske Transportation Solutions increased by 121 percent.”
Other highlights include total revenue increased 21 percent to $7.0 billion from $5.8 billion. Retail automotive same-store revenue increased 11 percent, with new vehicles down 3 percent and used vehicles up 29 percent. Finance and insurance were up 25 percent, and service and parts were up 13 percent.
Retail automotive same-store gross profit increased 27 percent, with new vehicles up 45 percent and used vehicles up 38 percent. Finance and insurance increased 25 percent and service and parts increased 12 percent.
Commercial truck same-store revenue increased 47 percent, with new trucks increasing 55 percent and used trucks up 54 percent. Finance and insurance were up 77 percent, and service and parts were up 26 percent.
Commercial truck same-store gross profit increased 45 percent. New trucks increased 71 percent and used trucks increased 92 percent. Finance and insurance were up 77 percent, and service and parts were up 28 percent.
As of March 31, 2022, Penske operated 23 CarShop used vehicle locations. For the three months ended March 31, 2022, retail unit sales increased by 71 percent to 19,523 while total revenue increased by 113 percent to $515.8 million, including an increase of 89 percent on a same-store basis.
Penske Transportation Solutions (PTS), a provider of full-service truck leasing, truck rental, contract maintenance, and logistics services in which Penske Automotive Group has a 28.9 percent ownership, recorded $118.5 million in earnings compared to $53.7 million for the same period last year, representing an increase of 121 percent.
The increase was principally driven by increased demand for the company’s full-service leasing, rental, and logistics services, coupled with improved efficiency which drove a 13.4 percent return on sales for PTS during the first quarter of 2022.