Penske Automotive Group Inc PAG
Q2 2011 Earnings Call Transcript

Transcript Call Date 07/21/2011

Operator: Good afternoon, ladies and gentlemen, and welcome to the Penske Automotive Group Second Quarter 2011 Earnings Conference Call. Today’s call is being recorded and will be available for replay approximately one hour after completion through July 28, 2011. Please refer to the Company’s press release dated July 5, 2011, for specific information about how to access the replay. An audio file of today’s call will be available on the Company’s website under the Investor Relations tabs at

I’d now like to introduce Tony Pordon, the Company’s Executive Vice President of Investor Relations and Corporate Development. Sir, please go ahead.

Anthony R. Pordon - EVP, IR and Corporate Development: Thank you, Laurie, and good afternoon, everyone. Thanks for joining us today. We apologize for the delay of the start of the call. There was some technical difficulty as they tried to bridge the call from us to you with respect to some equipment, but we believe now that that has been fixed through a workaround and we’re are ready to go. So, again, thanks for joining us today.

A press release detailing our second quarter results was issued this morning and I hope you’ve all seen that and is posted on the Company’s website. Joining us for today’s call would be Roger Penske, our Chairman; David Jones, our Chief Financial Officer; and J.D. Carlson, our Controller.

Before we begin, I'd like to remind you that we may make some forward-looking statements on this call today. Our actual results may vary because of the risk and uncertainties, including external factors such as consumer confidence, consumer credit conditions, OEM and supplier operational issues, interest rate fluctuations, changes in consumer spending, macroeconomic factors and other factors over which the Company has no control. Any such forward-looking statement should be evaluated together with the information in our public filings including our Form 10-K.

At this time, I'd like to turn the call over to Roger Penske, who’ll take you through our second quarter results.

Roger S. Penske - Chairman and CEO: Thank you, Tony, and I apologize for the technical difficulty there as we get started this afternoon, but good afternoon, everyone, and thanks for joining us. Today, Penske automotive reported 2011 second quarter income from continuing operations of $39.9 million or $0.43 per share, which compares to income from continuing operations of $31 million or $0.34 per share for the second quarter of last year.

Our total revenue increased by $273 million or 10.5% to $2.9 billion. Total same-store units retail increased 4.6% to 69,755 units. Same-store retail revenues increased 9.8%, with each area of our business posting solid revenue growth. Same-store retail revenues increased in the United States 7.5%, internationally it increased 13.6%.

Our same-store retail revenues increase includes 13.8% for our premium luxury brands, 1.9% for our volume foreign brands and 8% for our domestic brands. Our revenue mix for the quarter was 62% in the United States and 38% internationally. Our brand mix Big 3 was 5%, volume foreign was 27% and that was down 2% compared to year end 12 months 2010. And out premium luxury was at 68%, up 2% since year end.

Read our Earnings Call Transcript disclaimer.
Add a Comment
E-mail me new replies.