Penske Automotive has recently reported its 2020 First Quarter Financial Results and Update, including actions the company has taken on the COVID-19 crisis.
Through a conference call and simultaneous broadcast on the company’s website, Penske Automotive Group has reported that it generated $212 million in cash flow from operations and free cash flow of $145 million (see non-GAAP reconciliation).
The company reported income from continuing operations attributable to common shareholders of $51.6 million, or $0.64 per share, compared to $100.1 million, or $1.19 per share in the previous year.
It also reported that the company repurchased 890,195 shares, for $29.4 million, or an average of $33.06 per share. As of March 31, the company had remaining share repurchase authorization of approximately $170.6 million.
Chairman Roger Penske has also shared the measures the company has taken to address the current crisis.
"In response to the COVID-19 crisis, we implemented a hiring freeze, initiated expense reductions, deferred approximately $150 million in capital expenditures and furloughed approximately 15,000 employees representing 57% of the worldwide workforce. In addition, we implemented significant pay cuts including a temporary 100% reduction in salary for the CEO and president, a 25% reduction in salary for our other executive officers and the Board of Directors has waived cash compensation through the end of September 2020," Penske said. "We believe the actions taken will help us overcome the challenges of the COVID-19 pandemic and are encouraged by the improving conditions we are starting to see across many of our markets. We will continue to actively monitor the situation and adjust our business model to adapt to the changes presented by COVID-19."