Penske Reports 3.7% Uptick In Same-Store Customer-Pay Revenue

For the third quarter of 2022, the Penske Automotive Group (PAG) reported $609.80 million in total service and parts revenue — an increase of 9.8% compared to a year ago. On a same-store basis, total service and parts revenue grew 4.1% to $577.20 million. Excluding unfavorable foreign currency fluctuations, total same-store service and parts revenue would have increased 9.6%.

Management attributed the increase in same-store service and parts revenue to a 3.7% increase in customer-pay revenue, a 4.1% uptick in warranty revenue, and a 9.3% rise in vehicle preparation and body shop revenue.

Total parts and services gross profit increased 7.7% to $359.40 million, with same-store total parts and services gross profit up 2.8% to $342.40 million. Excluding unfavorable foreign currency fluctuations, total same-store service and parts gross profit would have increased roughly 8%.

According to management, the increase in same-store gross profit came from a 5.9% rise in vehicle preparation and body shop gross profit, a 4.4% uptick in warranty gross profit, and a 1.1% increase in customer-pay gross profit.

Total parts and services gross margin slipped from 60.1% to 58.9% year over year, while same-store total parts and services gross margin decreased from 60.1% to 59.3% year over year.

PAG is a diversified international transportation services company and one of the world’s largest automotive and commercial truck retailers. As of Sept. 30, 2022, the company operated 340 retail automotive franchised dealerships of which 152 were located in the United States and 188 were located outside of the United States, primarily in the United Kingdom.

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