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Penske Automotive Group reports news on its automotive retail, commercial truck dealership, service and parts, and finance and insurance operations. The company is a diversified international transportation services business with franchised automotive dealerships, commercial truck dealerships, used-vehicle stores, commercial vehicle distribution and power systems operations, and joint venture interests tied to Penske Transportation Solutions.
Recurring updates for PAG cover quarterly operating results, same-store vehicle sales, gross profit per unit, service and parts revenue, truck-market conditions, dealership acquisitions, credit-agreement funding, dividends, share repurchases, and balance-sheet and capital-allocation activity. Company announcements also include completed dealership additions in markets such as California, Texas, and Florida, including Toyota and Lexus franchises.
Penske Automotive Group (NYSE: PAG) announced the pricing of $550 million in fixed rate Senior Subordinated Notes due 2025 at 3.5%. This offering is subject to customary closing conditions and is expected to close on August 20, 2020. The proceeds will be used to redeem the company's existing $550 million 5.75% Senior Subordinated Notes due 2022, scheduled for redemption on October 1, 2020, along with other debts. The offering details and forward-looking statements are available in the prospectus filed with the SEC.
Penske Automotive Group (NYSE:PAG) announced a $550 million offering of fixed-rate Senior Subordinated Notes due 2025, contingent on market conditions. The net proceeds will be used to redeem existing $550 million 5.75% Senior Subordinated Notes due 2022 by October 1, 2020, and for various corporate purposes, including repaying U.S. credit agreements and floor plan debt. The offering is conducted through a prospectus supplement filed with the SEC. Forward-looking statements highlight the uncertainties associated with the financing.
Penske Automotive Group (NYSE:PAG) reported second quarter 2020 results showing a significant decline in revenue and earnings due to COVID-19 impacts. Income from continuing operations was $45 million, or $0.56 per share, down from $117.7 million year-over-year. Revenue fell from $5.8 billion to $3.7 billion. Same-store new and used vehicle sales plummeted by 71% and 50% in April and May, respectively. The company generated $784 million in cash flow from operations and suspended its dividend, preserving $34 million in cash. The balance sheet remains strong, with $1.2 billion in liquidity.
Penske Automotive Group (NYSE: PAG) will host its second quarter 2020 financial results conference call on Wednesday, July 29, 2020, at 2:00 p.m. EDT. Investors can join the call by dialing (866) 394-1455 in the U.S. or (516) 575-8644 internationally, using conference ID 3229936. A simultaneous webcast will be available, and a replay can be accessed until August 5, 2020. Penske operates automotive dealerships in the U.S., Canada, and Europe and distributes vehicles in Australia and New Zealand.
Penske Automotive Group (NYSE:PAG) announced an operational update for Q2 2020, projecting earnings per share of $0.52 to $0.57 based on strong performance at its U.S. and U.K. dealerships. All U.S. retail dealerships are open, with a notable recovery in vehicle sales in June. The company's liquidity position is solid, reporting nearly $1.2 billion in cash and credit availability, with plans to repay $300 million in senior subordinated notes. However, the suspension of the cash dividend announced in May will remain in effect.