Penske Automotive Group, Inc. saw its overall revenues rise 8 percent in the fourth quarter, while its same-store retail revenues increased by 4 percent. A 15 percent increase in international sales boosted the company's growth, netting an income of $33.9 million compared to $30.3 million in the fourth quarter last year. "Our fourth quarter results reflect the strength of the Penske Automotive business model," says Penske's Automotive Group Chairman Roger Penske. "While the new vehicle sales environment in the U.S. was challenging, the other areas of our business performed very well. In particular, we are pleased to see the continued growth of pre-owned vehicle sales and the sustained strength of our service and parts operations, which have served to partially offset the soft new vehicle sales market." Penske adds: " As we look at 2008, we look forward to the opportunity presented by the launch of our smart distribution business, and we are confident in the ability of our business model to continue to perform in these challenging economic times." The company reports adjusted fourth quarter income from continuing operations of $31.8 million, or $0.34 per share, compared to income from continuing operations of $32.5 million, or $0.34 per share, in the fourth quarter last year. Adjusted fourth quarter net income was $33.9 million, or $0.36 per share, compared to net income of $30.3 million, or $0.32 per share in the fourth quarter last year. Adjusted earnings exclude the impact of $4.5 million of after-tax impairment losses recorded during the fourth quarter of 2007. Fourth quarter income from continuing operations was $27.4 million, or $0.29 per share, and fourth quarter net income was $29.4 million, or $0.31 per share. Revenues in the quarter increased 7.7 percent to $3.1 billion, including same-store retail revenue growth of 4.0 percent . For the year ended Dec. 31, 2007, revenues increased 16.5 percent to $13.0 billion. Income from continuing operations and related earnings per share for the year were $127.8 million and $1.35 per share, respectively. Excluding $12.3 million ($0.13 per share) of after-tax costs resulting from the March 2007 redemption of the company's 9.625 percent Senior Subordinated Notes and the impairment losses in the fourth quarter noted above, adjusted income from continuing operations for the year increased 9.3 percent to $144.6 million and related earnings per share increased 9.3 percent to $1.53 per share. Net income and related earnings per share for the 12 months were $127.7 million and $1.35 per share, respectively. Adjusted net income increased 15.9 percent to $144.5 million, and related earnings per share increased 15.9 percent to $1.53 per share. The company currently estimates earnings from continuing operations to be in the range of $1.63 to $1.71 per share for the year ended Dec. 31, 2008. First quarter 2008 earnings from continuing operations are estimated to be in the range of $0.32 to $0.34 per share. Earnings per share information in 2008 is based on an estimated average of 95.0 million shares outstanding. Penske also announced that its board of directors has authorized the company to repurchase up to $150.0 million of its outstanding common stock, depending on market conditions, share price and other factors. Shares may be acquired from time to time either through open market purchases, negotiated transactions or other means. The company currently contemplates purchasing any shares under this program using cash flow from operations and credit availability in the U.S. "We view the opportunity to purchase our shares at recent market prices as an outstanding investment, highlighting our belief in the long-term fundamentals and value of our business," says Bob O'Shaughnessy, Penske Automotive's chief financial officer. "Based on our current financial position, we believe we can increase shareholder value by pursuing this share repurchase program while we continue our efforts to enhance the business through sustained organic growth and selective acquisition activity." smart USA Distributor LLC, the company's wholly-owned distribution entity for the smart fortwo in the U.S., has certified 68 dealers in 31 states, including eight company-owned franchises, as ready for business. smart USA has shipped vehicles to its dealers, and retail deliveries began in January 2008. "I would like to commend the smart USA team for establishing a first-class distribution operation and organizing the retail network in only 18 months," Penske says. "We are encouraged by the positive reaction of the U.S. consumer towards this unique and exciting product, and are confident that the smart fortwo will be a retail success." For more information about the Penske Automotive Group, visit the company's Web site. |
