Q2 2024 Penske Automotive Group Inc Earnings Call Transcript
Key Points
- Penske Automotive Group Inc (PAG) achieved record total quarterly revenue of $7.7 billion, the highest in the company's history.
- Service and parts revenue increased by 10% to a record $753 million.
- Equity earnings from Penske Transportation Solutions increased 63% sequentially.
- The company successfully integrated 16 new dealerships in the UK, adding $1 billion in estimated annualized revenues.
- PAG increased its dividend three times in 2024, resulting in a 35% increase in cash payout to $1.07 per share.
- Used vehicle transaction prices declined by 3% to $34,700.
- Rental revenue for Penske Transportation Solutions declined by 13%.
- The company faced a $43 million increase in interest expense due to higher rates and bond refinancing.
- A weaker freight market reduced demand for tractors and medium-duty trucks, impacting the gain on the sale of used trucks.
- The Premier Truck business was temporarily impacted by a cybersecurity incident, although the financial impact was not material.
Good afternoon. Welcome to the Penske Automotive Group second-quarter 2024 earnings conference call. Today's call is being recorded and will be available for replay approximately one hour after completion through August 7, 2024, on the company's website under the Investors tab at www.penskeautomotive.com. (Operator Instructions)
I will now introduce Tony Pordon, the company's Executive Vice President of Investor Relations and Corporate Development. Sir, please go ahead.
Thank you, Lea. Good afternoon, everyone, and thank you for joining us today. A press release detailing Penske Automotive Group's second-quarter 2024 financial results was issued this morning and is posted on our website, along with the presentation designed to assist you in understanding the company's results. As always, I'm available by email or phone for any follow-up questions you may have.
Joining me for today's call are Roger
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