The following is a summary of the Penske Automotive Group, Inc. (PAG) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Penske Automotive Group reported Q1 revenues rise by nearly 2% to $7.4 billion, selling over 126,800 new and used vehicles.

• The company's gross margin was at 16.7% with net income reaching $215 million and earnings per share noted at $3.21.

• Higher interest costs and higher inventory levels negatively impacted income and earnings per share.

• Penske Transportation Solutions saw a 3% increase in operating revenue to $2.7 billion but experienced a drop in net earnings.

• The company managed increased gross profit units in both US and UK markets, primarily in used cars.

• An accounting rectification in SG&A boosted stability.

• Penske has successfully managed its 2025 notes due later this year, shifting it to long-term debt from current liabilities.

Business Progress:

• PAG added 24 new automotive franchises during Q1, and Penske Transportation Solutions' fleet size also increased.

• PAG expanded its presence in Australia by entering into an agreement to acquire two Porsche and a Ducati dealership in Melbourne.

• The company continued its diversification strategy with a focus on a 50-50 split between organic growth and acquisitions, targeting opportunities in Australia's retail market and Detroit 3 brand store acquisitions.

• The company navigated product recalls, supply, and production issues effectively and improved profitability with BEV units.

• They noted marked growth in the UK market despite initial challenges with the Mercedes-Benz agency model.

• Penske has also upped its dividend by 57% since 2022.

More details: Penske Automotive IR

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