Penske Automotive Group, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Penske Automotive Group, Inc. has filed its 2023 10-K report detailing financial performance and operational segments.</b>

AI Summary

PENSKE AUTOMOTIVE GROUP, INC. (PAG) filed a Annual Report (10-K) with the SEC on February 16, 2024. Penske Automotive Group, Inc. filed its annual report on Form 10-K for the fiscal year ended December 31, 2023. The filing covers the company's financial performance and business operations for the year 2023. Key financial data and operational segments, including Retail Automotive and Retail Commercial Truck, are detailed. The report includes information on various debt instruments, such as Senior Subordinated Notes. Shareholder equity components like Common Stock and Additional Paid-In Capital are presented as of December 31, 2023.

Why It Matters

For investors and stakeholders tracking PENSKE AUTOMOTIVE GROUP, INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Penske Automotive Group's financial health and strategic positioning for the fiscal year 2023, crucial for investors assessing its performance. The detailed segment information and financial data allow stakeholders to understand the company's revenue streams and operational efficiency across its automotive and commercial truck businesses.

Risk Assessment

Risk Level: medium — PENSKE AUTOMOTIVE GROUP, INC. shows moderate risk based on this filing. The company operates in the highly cyclical automotive retail industry, which is subject to economic downturns and changes in consumer demand, as indicated by the segment reporting for Retail Automotive and Retail Commercial Truck.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess Penske Automotive Group's performance and outlook in the automotive retail sector.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-16 — Filing Date (Filed as of date)
• 2023-01-01 — Reporting Period Start Date (Fiscal year 2023)
• 2023-12-31 — Reporting Period End Date (Fiscal year 2023)

Key Players & Entities

• PENSKE AUTOMOTIVE GROUP, INC. (company) — Filer name
• 20231231 (date) — Conformed period of report
• 20240216 (date) — Filed as of date
• 2555 TELEGRAPH RD (address) — Business address street 1
• BLOOMFIELD HILLS (city) — Business address city
• MI (state) — Business address state
• 48302-0954 (zip_code) — Business address zip
• UNITED AUTO GROUP INC (company) — Former company name

FAQ

Risk Factors

• Cyclical Nature of Automotive Industry [medium — market]: The company's business is subject to the cyclical nature of the automotive industry, which can be impacted by economic conditions and consumer spending.
• Reliance on Key Personnel [medium — operational]: The company's success depends on its ability to attract and retain qualified personnel, particularly in sales and management roles.
• Interest Rate Fluctuations [medium — financial]: Changes in interest rates can affect the cost of financing for inventory and the profitability of finance and insurance operations.

Key Financial Figures

• $0.0001 — istered Voting Common Stock, par value $0.0001 per share PAG New York Stock Exchange
• $29.5 billion — erview In 2023, our business generated $29.5 billion in total revenue, which is comprised of
• $25.2 billion — ue, which is comprised of approximately $25.2 billion from retail automotive dealerships, $3.
• $3.7 billion — ion from retail automotive dealerships, $3.7 billion from retail commercial truck dealership
• $634.0 million — etail commercial truck dealerships, and $634.0 million from commercial vehicle distribution an
• $4.9 billion — tion and other operations. We generated $4.9 billion in gross profit, which is comprised of
• $4.2 billion — in gross profit, which is comprised of $4.2 billion from retail automotive dealerships, $59
• $592.4 million — ion from retail automotive dealerships, $592.4 million from retail commercial truck dealership
• $165.2 million — etail commercial truck dealerships, and $165.2 million from commercial vehicle distribution an
• $289.5 million — truckload carrier services. We recorded $289.5 million in equity earnings from this investment
• $0.57 — stock dividend four times in 2023 from $0.57 per share to $0.79 per share, resulting
• $0.79 — r times in 2023 from $0.57 per share to $0.79 per share, resulting in $189.1 million
• $189.1 million — share to $0.79 per share, resulting in $189.1 million of dividends being paid in 2023 compare
• $154.1 million — idends being paid in 2023 compared with $154.1 million in 2022. Our latest declared dividend i
• $0.87 — n 2022. Our latest declared dividend is $0.87 per share payable on March 1, 2024, to

Filing Documents

• pag-20231231.htm (10-K) — 2568KB
• a202310kex4_1x10.htm (EX-4.1 10) — 23KB
• a202310kex10_3.htm (EX-10.3) — 27KB
• a202310kex10_17.htm (EX-10.17) — 327KB
• a202310kex21.htm (EX-21) — 40KB
• a202310kex22_1.htm (EX-22.1) — 39KB
• a202310kex23_1.htm (EX-23.1) — 3KB
• a202310kex31_1.htm (EX-31.1) — 9KB
• a202310kex31_2.htm (EX-31.2) — 9KB
• a202310kex32.htm (EX-32) — 6KB
• a202310kex97.htm (EX-97) — 26KB
• pag-20231231_g1.jpg (GRAPHIC) — 36KB
• pag-20231231_g2.jpg (GRAPHIC) — 37KB
• pag-20231231_g3.jpg (GRAPHIC) — 34KB
• pag-20231231_g4.jpg (GRAPHIC) — 36KB
• pag-20231231_g5.jpg (GRAPHIC) — 36KB
• pag-20231231_g6.jpg (GRAPHIC) — 88KB
• 0001019849-24-000033.txt (&nbsp;) — 13262KB
• pag-20231231.xsd (EX-101.SCH) — 84KB
• pag-20231231_cal.xml (EX-101.CAL) — 109KB
• pag-20231231_def.xml (EX-101.DEF) — 497KB
• pag-20231231_lab.xml (EX-101.LAB) — 965KB
• pag-20231231_pre.xml (EX-101.PRE) — 741KB
• pag-20231231_htm.xml (XML) — 1644KB

Business

Business 1 1A.

Risk Factors

Risk Factors 19 1B. Unresolved Staff Comments 28 1C. Cybersecurity 28 2

Properties

Properties 30 3

Legal Proceedings

Legal Proceedings 30 4 Mine Safety Disclosures 31 PART II 5 Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 31 6 Reserved 33 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 33 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 59 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 60 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 60 9A.

Controls and Procedures

Controls and Procedures 60 9B. Other Information 60 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 60 PART III 10 Directors, Executive Officers, and Corporate Governance 61 11

Executive Compensation

Executive Compensation 61 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 61 13 Certain Relationships and Related Transactions and Director Independence 61 14 Principal Accounting Fees and Services 61 PART IV 15 Exhibits and Financial Statement Schedules 62 16 Form 10-K Summary 62 Table of Contents PART I

Business

Item 1. Business We are a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers. We operate dealerships in the United States, the United Kingdom, Canada, Germany, Italy, and Japan, and we are one of the largest retailers of commercial trucks in North America for Freightliner. We also distribute and retail commercial vehicles, diesel and gas engines, power systems, and related parts and services principally in Australia and New Zealand. We employ approximately 28,000 people worldwide. Additionally, we own 28.9% of Penske Transportation Solutions, a business that employs over 44,000 people worldwide, manages one of the largest, most comprehensive and modern trucking fleets in North America with over 439,000 trucks, tractors, and trailers under lease, rental, and/or maintenance contracts, and provides innovative transportation, supply chain, and technology solutions to its customers. Business Overview In 2023, our business generated $29.5 billion in total revenue, which is comprised of approximately $25.2 billion from retail automotive dealerships, $3.7 billion from retail commercial truck dealerships, and $634.0 million from commercial vehicle distribution and other operations. We generated $4.9 billion in gross profit, which is comprised of $4.2 billion from retail automotive dealerships, $592.4 million from retail commercial truck dealerships, and $165.2 million from commercial vehicle distribution and other operations. Retail Automotive. We are one of the largest global automotive retailers as measured by the $25.2 billion in total retail automotive dealership revenue we generated in 2023. We are diversified geographically with 56% of our total retail automotive dealership revenues in 2023 generated in the U.S. and Puerto Rico and 44% generated outside of the U.S. We offer over 35 vehicle brands with 71% of our retail automotive franchised dealership revenue in 2023 generated from pre