DETROIT -- Penske Automotive Group said second-quarter net income rose 18 percent from the year-earlier period, on higher new- and used-vehicle unit sales.
Penske posted net income of $73.9 million, as revenues increased 21 percent to $4.41 billion. Revenues rose at a double-digit pace in all categories: new- and used-vehicle sales, fleet and wholesale sales, service and parts, and finance and insurance operations.
Income from continuing operations rose 27 percent to $80.3 million, a record for any quarter at the retailer.
The higher revenues came on a 10 percent increase in retail sales to 101,422 units. Sales of new units rose 10 percent, outpacing the U.S. industry's new-vehicle sales growth of 7 percent in the quarter. Penske's used-vehicle retail sales also rose 10 percent.
On a same-store basis, though, retail sales -- new and used combined -- rose 5 percent to 96,658 units.
"Our business delivered another outstanding quarter," Chairman Roger Penske said in a press release on Wednesday. "I am particularly pleased with another quarter of double-digit, same-store retail revenue growth, further highlighting the benefit of our company's brand mix and geographic diversification."
Penske said he is confident in the strength of the auto retail market and predicts continued overall business growth going forward.
Penske said 61 percent of its revenues came from the United States, down from 66 percent a year earlier. The UK accounted for 35 percent of revenues, up from 34 percent. Other international regions contributed 4 percent to revenues in the latest quarter, vs. zero a year earlier.
Revenues from new-vehicle sales rose 18 percent to $2.24 million, while used-vehicle sales jumped 20 percent to $1.27 billion.
On a same-store basis, retail revenues rose 13 percent to $3.87 billion.
Total revenues from service and parts climbed 13 percent to $435.7 million. Revenues from fleet and wholesale sales rose 20 percent to $216.8 million, while net revenues from F&I operations rose 19 percent to $112.3 million.
Gross profit per new vehicle retailed rose 11 percent to $3,115. Gross profit per used vehicle retailed rose 3 percent to $1,966.
Gross profit per vehicle retailed from F&I gained 7 percent to $1,107.
The average transaction price rose 7 percent for new vehicles to $40,318 and 9 percent to $27,733 on used vehicles.
During the six months ended June 30, Penske repurchased 335,350 shares of its common stock for about $15.5 million, or an average price of $46.20 per share. It has a remaining share repurchase authorization of $77.6 million.
Penske ended the quarter with $61.4 million in cash and cash equivalents on hand, up from $49.8 million on Dec. 31, 2013.
Penske ranks No. 2 on the Automotive News list of the top 125 dealership groups in the United States, with retail sales of 199,795 new vehicles in 2013.