Penske Automotive (PAG) 11 Feb 212020 Q4 Earnings call transcript

Good afternoon, ladies and gentlemen. Welcome to the Penske Automotive Group Fourth Quarter 2020 Earnings Conference Call. Today's call is being recorded and will be available for replay approximately one hour after completion through February 17, 2021 on the Company's website under the Investors tab at www.penskeautomotive.com. I will now introduce Anthony Pordon, the Company's Executive Vice President of Investor Relations and Corporate Development. Sir, please go ahead.

Regina. you, Thank and everyone for us joining Good thank today. afternoon you our detailing A morning fourth on the the Company's Penske in quarter assist release designed and along to presentation XXXX posted results. this Group's understanding issued Automotive press you with was financial is website results

any As always, for I'm may you email by questions available have. phone or follow-up

our Joining Financial Officer; Chief Chairman; J.D. me Carlson, for today's Shelley call Corporate Hulgrave, are Roger Penske, our Controller. and

outlook, about Our light before taxes, growth future adjusted discussion We or potential, amortization taxes, may certain operations, and measures such operations, today depreciation adjusted per of continuing of in financial EBITDA before EBITDA. discuss non-GAAP pandemic. events, general statements liquidity conditions earnings our assessments and forward-looking earnings COVID-XX and adjusted income may earnings interest, plans, from also earnings administrative expenses, as and include business adjusted adjusted the and selling, share

presented measures GAAP on prominently to have is the available most have our measures, morning's and investor which and comparable directly this We release the in the presentation, GAAP non-GAAP measures. website comparable reconciled press

now results to actual to differ I our vary materially. because of actual today's press the results differ additional that from risks over turn materially Our I'll Form our call you At discussion release, SEC which for to results filings, do cause Roger cause XX-K, the uncertainties direct outlined expectations. may this factors could and Penske. may in to including time, and

in a strong reported joining today. Good you, This everyone for including morning afternoon we very business results our Tony. record us quarter. and you thank fourth for Thank XXXX,

to operations basis share XX% a points percentage earnings million on adjusted related points to increased from and XXX an per of and $X.XX. before income basis million, XX.X%. XXX to quarter as XXX to the earnings declined declined expense profit gross taxes XX.X% basis to XXX and increased XX% SG&A increased XX% For continuing

can estimate area T&E, administrative, SG this our reduction We Our be to maintenance, success attributed approximately been costs &A and XXX across in advertising, eliminated that million in in vehicle costs. a various businesses. personnel XXX fixed have to other million

new retail our driven segment debt lower revenue a to complete to per gross gross a basis point in XX% increase On to overall impacted gross XXX%. unit expense vehicle new increased retail the a profit same-store higher in XX.X%. retailed, unit interest nearly declined including as X.X% our was November. $X,XXX. X% XX Total UK in and overall This by inventory and gross and same-store increase Same-store leverage costs QX, same-store our automotive basis During increased showrooms levels. including or automotive due income in and X%. the margin profit markets increased reduction used an increased $XXX profit Retail lower of UK US lockdown COVID

million Moving SuperCenters, significant to SuperCenter on to We in annually. units X to future earn and the Nottingham in new this business represents X a retail million XX is locations our X,XXX and used opening vehicle opportunity. This approximately expected UK between after December. expanded growth EBT

now nearly XX% increased quarter, our variable decline, sourcing online by as the car we XX% as vehicle impacted our using XX,XXX COVID. purchases. and sold Despite was the auction fourth During volume SuperCenters grosses your by units improve by down internal

dealerships currently to XX US operate duty Turning and the truck and Canada. retail commercial we in truck medium the heavy dealership business,

of representing new an to used increase period sold During the XX%. last year, in compared fourth X,XXX quarter the we same and X,XXX trucks

XX% same truck American which were Our to market, new were units up period. declined favorably the during Used units units North Class up XXX%. The increase X.X%. compares new in X-X the

and as increase units and very have for is and the gross our operations costs units, Our in ago. is represented on in X.X%. X profit result of forecasting have improved basis since truck strong same to freight was American a truck of first a parts now Used improved really backlog XXX,XXX were XXXX. a XX% XX% sales December QX sales a return XX, and feel retail total the steadily X year margins represents points our market XX% fixed the and the and ACT Class from revenue is At heavy was which the XXXX. market absorption period Class is up XXX half million market we North Right Service XXX XXX,XXX increase XXX%.

this We expect businesses truck truck commercial the strong and leasing will our to tailwinds year. provide market

know of million QX In XXX an had Turning to sales. on you as Solutions, Transportation return a fleet vehicles. billion generated and X.X in of X.X% income PTS we operate Penske over XXX,XXX revenue,

at trucks As represents XX,XXX retail which expected our as almost classes to expected million over we overall which American equity generate of North XX% X%. Today our and Class and rental the acquired at And to revenue, much rental growth sale million our our XX%. the service X many grocery If strong were heavy revenue is fleet. leasing the earnings fourth full demand approximately have quarter XXX contract a result, is higher XX.X trucks and to consumer PTS continues levels. automotive, in Black to with annualized we Horse on than utilization In Commercial X%. market in increased stronger rates of up volumes are in look and sales operating improve. duty gain previously a logistics, Carriers, be of continues used

the For PTS XXX revenue billion and generated in total year, X.X million. of income

to to XXX.X earnings equity our the XXX in result, year. prior a XX% compared million As increased

and investment benefits. sheet PTL at balance flow, through balance tax in we great cash look in the our distributions million shape. and sheet flows cash XXX provided If is the XXXX, For

of which inventory total last is XXX Our December year. down is million X.X from billion,

When commercial supply, XXXX. we to XX cash billion generated debt December operations. XX.X% reduce generated X.X the to with use day XXXX, at was Used from our the help XXX XX obviously of XX in for Our we during was new down really compared EBITDA for brands of truck look day year the million. supply you short And and inventory a XX have flow and year. X.X, from the the for this down inventories approximately throughout to capitalization flow by our leverage XXX cash an as end new and million during our used. of inventory in million the supply We XXX the year We expect million. vehicle X.X and in continue over ratio supply and most XX.X%. debt remains XXX down we to of was million long-term In XXXX improvement beginning finished day at of a

XXX points. refinanced We XXX of We subordinated and million for lease notes buy We million repayment including notes expenditures, in due a notes acquire the financing and debt XXX annually. future also will interest property, our X.XX% a net estimate expansion. reduce basis of XXX new million capital reducing million of subordinated with in X.X% refinance XX XX rate interest XX invested by at expense land by future million to million XXXX

repurchases shareholders various the As we through we returned credit in with million under year, billion December XXX agreements. ended our our during dividends and liquidity X to share

to digital XX% introduction our quarter. marketing new continue US the Moving grow, XX,XXX on the initiatives, and in sales represented of we tools We digital footprint, and efforts the our technologies. digital have unit vehicles including enhance expand our to in our currently and online,

marketing customers' a channels. focuses Our various through connection multi-channel creating on with our

step these through a credit car from $XX, can and at It's Our point the accommodate in XXX each The obtain digitally receive approval generated US buying X,XXX trade-in closing in scheduled can process called reserve proprietary showrooms our for and We ratio. the as of were platform, retailing now every online collect In offers XXX,XXX we scheduled were purchase. instant can customer tool and is complete a next in going in schedule UK. with The to were are our our the channel flexible of guaranteed allows their online vehicles collect process processed capability channels Through a any the all development And quarter the multi-channel In digital options. cars Transactions to gain the delivered parts. dealership customer step service QX, choose customer the to finance appoints and are another a a the XXX,XXX digitally. XX,XXX locations closed in a November, too price. continue service tools preferred sales. through in online our buying for business introduce use implemented same and had and we traction their with journey, UK, XX% centers. to SuperCenters, when and fourth vehicle. on at apply buying sales that over to car click customer

pay. bill buy So online, when collect and online and you preferred click purchase, scheduling combine

or have allow visit customer of transaction We the to the their to any to stores. tools our perform shorten our part online

expansion, dealership are Looking dealerships dealership at to add Audi we and our Texas, new dealership certified a in identified this growth DC in and a in Porsche in annualized Southern XXX would serving which we Washington construction. revenue metro January, in of the and targets opened area Honda California currently both and under franchise are Elite new include currently acquisition second were constructing million expected

of phase We plan. also we've with intend UK of SuperCenter grow Nottingham expansion in our in our dealership the opening next started to business the the December

the We new location US expect in to open a May. in

online We'll name of one US offering the we're incorporate business X, automated brand end-to-end have the CarSense Supercenter forward. business to March an on CarShop. global an business XXX% we within fact, In the US In process drive to buying changing to intend QX the capability. from

generate plan As our footprints the size CarShop billion we that sales, years, between locations will growth X.X revenue we least expect plan from billion business we X XX at and next the XXX,XXX of the that be a doubling of by increase XX to XXXX. time, At would Supercenter look unit to execute business. current end across three in to Supercenter

our and over look for that to earn earnings we And at is SuperCenters finally, on goal between the to generate the and years, acquisitions, SuperCenter EBT time combination We'll sales. X.X% our approximately goal as diversified X% expansions taxes million. XXX portfolio earnings across of of businesses before Our billion of next growth. to three grow taxes, organic before is over to X

before reduced million. retail XX% use per mentioned XXX anticipated yield to and We record to our from earnings and selling, to savings. to We XX% achievements new and of and completed X.X XXX our stock to ratio to income expenses from the as to mention a drove basis $X.XX. gross shareholders of PTG that XXX than of XX% I'd highlight a XXXX. increasing continued XXX,XXX million profit XXXX operations on in performance XXX XXX earnings general I've increased and our performance We recently some billion in year million, are percent X.X XXX million points. closing, our X, new increased Before flow increased our to by – more taxes million vehicles We reductions share used million administrative to by to and returned cash dividends by XXX repurchases. strong long-term reduce through annual generate cost like debt

their here, for these effort times. Before team to like significant our I'd work I and close thank during unprecedented

As the on for the call remain enterprise. operator across about I call like to of she'll the diversified time, this the I for support turn up look I open back Thanks today, confident line. to you. opportunities to and continued see us our future, again your Thank PAG. forward and At I'd the the joining

ahead. Rajat Our go Instructions] Morgan. line the from of JP come first will Gupta [Operator Please question with

Rajat. Hi,

ones timeline question. acquiring? afternoon, brands What the give a us on growth Roger, growth good just looking The of you question used the regions new franchise are could Tony. for XXX you specifically you And sorry, on specifically the – Or pay us are had targeting? give acquisition. on you're taking plan, the my I'll up of color multiples to the then follow million at? kind dealer of revenue, can business Hi, looking – sense just in you the for What the there. any you're Thanks just the that? ahead. go I that just first

including the the commercial then be transportation be estimating our question, billion be first our gross as we're our – and really about grow me XXXX, growth would growth Let think probably areas. UK And to three I think solutions and about And and they're XX% a about be EBT. just would on me we'd you And try the organic in between business vehicle let businesses – at in One now at answer area. acquisitions, would would that XX%. side US our retail superstores have about XX%. would

the growth. So that gives you buckets of three

XX%. the on at and about would on car those about use return look seeing XXX we're we we investment, the when think be I on the superstores probably think will million, return invest

On to at And look if I'm about on XX% today, not US, XX% to the at nationally, XX. in UK, probably think, talking we truck I probably see it's the return XX here you least side, it to capital.

to we're roughly, going for we're focus and still right future some the the of add and I to Canada. forward network to to the move XX. the in then and here that And obviously, earlier, in continuing be we Freightliner the locations will through UK. right we today the US to poised and as on SuperCenters, That and There's here, on for in the includes go 'XX as we're in network we're largest want returns. that XX car cloudiness businesses the XX the to build to our used So sure opportunities 'XX. CarShop, mentioned side to giving look in US from group XXX million the us truck XXXX, be US, Certainly the on investing, we in both both

we the open brands, great we'll the points open good And then they we've probably XXX mix. fit another good that. in that These I Does million a awarded see answer? have then that that And by give in XXX manufacturers. So would think the been and generate are you XXXX. we the what enough points million, feel our processes about

helpful. super that's No,

the kind for On some like the million, multiples environment or those in mean, I the terms just there deal seeing you what assets there? pricing of are out of of and XXX the out

I'm There's think its and and of probably then When size. that on some don't looking you're have I we're real but CapEx, sites brand assuming have these made of side, don't Well by I six you peers. some and paying know to what good the you been with. location look deal CI numbers eight purchases at times our some the you to that half for you don't look premium that. we truck really the the and at have are,

selective would right when activity shape. there's certainly now. very of the be store you're to But from you up in say going and we're build this better So obviously lots a can ground, I

especially to how more Once Got profit million some a super one ratio should standpoint, from and tailwinds back it, that's helpful. level, a runway through profit the thinking an with basis to XXX you margin be more in modeling a perspective, cost million And on gross gross side, to just near-term the reiterated out. Thanks. normalized you're SG&A forward? from these the of to about we new you're SG&A on gross level going more XXX

points we're you XX XXX still our think should to the at traditional. to down XX. be in I basis when We XXX look

get Got okay, back great. much it, color. all queue. so I'll in for Thanks the

you. Thank

comes Please question Your John America. Murphy next the from of with Bank ahead. line of go

Hey, John.

Good afternoon, the Thanks info. all for Roger.

XX but numbers to the way staying the from a sort going expansion talking a making the business, the commitment maybe footprint. with linear in obviously, outlets is question, bit physical XX about little car the of first you're the Just on you're I big mean, used here,

here, little a to bit more assets bent lot sort leverage So really be a then linear leverage as efforts, ball just your be or I'm vehicle CarShop to be you've logistic there in assets of it might different addition of whether these dealers. the you a you've digital whether curious PTS, your that and it potential of to in because locations, some maybe whether centers. be you Is able your other overlay new just it the on a – other basis in got than maybe side

saw and roughly our opportunity. grow what XXXX our activate by that to CarShop delivery a could the at certainly for to logistics as there's looking year over and steady when rocky a PTL that. far continue XXX that locations those XXX,XXX in just we're anywhere we thing use XXX move going during the about – country. let's look question about And model about locations. forward we've could – to technically now. where point in looking this no expect then during in – have we I'm in are the say obviously, million the state, three grow And increase let's have talking online. talk going CapEx we're really we're our those one to we exactly that locations, as that is And that you period – At And because US. has we delivery to ability But Well, talking with that investment. the we we across But from XX,XXX. capability to doing we capability, you certainly the through tools have vehicles

So those the And then would – as many of can or stretch you other say the systems leverage assets able in I some course, think, test UK. and said, we I we we're these have? these definitely. of we can to of

we'll build in So of with when at brand. the the Tony And morning, the one monthly. many we we one, large, And that can the one have markets. and in look good brand, the footprint, that XXX US out in they'll think some cars look I our will across continue the do to news, we global UK in have where have there's of scale there's information material we'll XXX we where cars that we'll be, stock, this that I on and sent be think

less day it's So supply. than a XX

be have. meet that our to we pull going when in we and that all plan. me, together, able to to It's drive So it's goal

metrics. have the We

CI the have We identified.

pivot UK that think have our best with into US. we a have that that marketing can we And move those the plans. class in tying can also together and CarShop We in I tools

a it'll in us the business. give start think real I

incredibly as going GPUs market. question, into and overflow of pricing now you're tightness I in side. result on just like and probably used remain the kind right and seems seeing chip used vehicle Yeah a on the a at side shortage tight new second here the are new mean, It strong you for and that'll then to things big the this

volume how much of manage you really do in can the longer Just curious your great you and dealerships think what challenging is sort performance industry in specifically environments?

not as that on to X.X% used used up were at we of any because Well, X.X year. There's new. into probably QX, margins been January great felt bit think say, degree new started we on and little on the a even see deterioration but some end our I we last look I'd on

I this out think going come some the demand. And inventory. case, to less meet last announcement to chain and going QX chip the to that here have that days, with to QX be in of I think supply news with before the have few probably we're the starts it's

– we'll floor of So a on there's than variable they're in certainly, them, to in premium plan, people a high grosses, getting we're used and so I don't deterioration And probably we'd in less getting sales a as – there luxury see cost plan. at have look are see we really most of side, pay less big our much volume.

I think that's important.

One reduced benefit about is if XX%. the situation all, of where – headcount we any during got the we at got during benefits you COVID

we're more performers, we units and the actually higher. per sales took the the On lower are salesman margins side, and getting seeing sale per we're out that

you But And I think year question pretty had going last the new. a can $XXX what is much almost that that in to drive think really them. see – on I increase really, chip I dynamic be mark will continue. So over the think nice we we

volume where think we when January. you we 'XX. in at have UK deterioration and And the certainly percentage, which click see of think But closed. of have John, deliver order from up benchmark I some grosses. And you you're registration at can think the the which would new the that's X%, March that you – overall to what – look key. think the if collect think we it look look in during the I US the So at on, on over seeing at grosses when overall overall we probably what's going to is saw me, with XX,XXX versus 'XX, best saying board, an when are to I was have to a up we're January, which that from in utilize we I our good are to I X%, unit units talking an if And look standpoint also the we're going board up XX% stores about order increase and be really

little even Yeah, good a environment, a seems like though looks choppy. bit pretty it

on highlighting opportunity, a down, you're position to now, interest. to right the debt to in save capital of relatively is pay as inexpensive. on lot debt the going capital and appreciate front there's be lastly, kind of lot I a on of you're good Just particularly Yet, even a side you deploy in

maybe additional just really I'm and above to the have now. than billion So an these to maybe leverage you're you appetite a aggressively plus there's right more about and now go if curious after reload opportunities, talking of liquidity of some a $X beyond

year. think say that in that's business. you how at the I I non-performers, We they would really But maybe when have think X.X, our XXX And invested million did that's times right this about to. the we if take in previous million at benchmark door or circumstance the requirements. balance we our our I – closed X revenue leverage XXX 'XX don't about and we back, meet look to X, all. what didn't sheet, least to We and of had a built we Yeah, under following

So the off. number US in also we've and a underperforming the UK. called that's businesses think in out And I paid of

look and days. quality last a of thing I to And driven, XX the there's I've some the management to there's about probably see, before, honestly, talking January, quite parts at saying the and think from the less they're service because mentioned XX% and that you the with start OEM key look if So deterioration once they're our it I even we've miles people, perform. done what to you able and team at only

think can't tell what to I and But got So margin parts something to about. you I factor we our and have going in to do to talk it's profit all QX. that in you that's gross that. service

Okay. very That's much. you Thank very helpful.

John. Thanks

line Nelson Stephens. Your next a Rick of question with comes from

Rick. Hi,

Good Thanks. afternoon, Tony. Roger

income nice XXXX. how going bulk to roadmap cash a provided growth? that up you to the curious to ratios You fund generated I'm $X you're the for pretax can those do get in it flow? see billion you with of or to internally your debt Do picking fund

say now, the Well, take I we generated XXX. pay I year, would right mean, so when that down the cash flow reinstituted last dividend some. cash We've to our flow will net

I think CapEx line. keep our CapEx I judicious our plan, to that very we've think in been on plan

giving in our I to many impact for money from had utilize now, building, be long-term a attractive. would cash year XX at XX think And looked if probably and their XX to that the quite I money in we acquisitions. would all big OEMs, period we any right only SuperCenters be year are or I where cases. through we'll it captives, over think which is million flow cases, other the XXX And that build then three us operations able be would the the and million

of deals that both I very in we've go perspective, side the we'd estate markets. market. real we had hand say put couple and the here don't the last a rates good into side PAG see have the from PTS But the reason any So on to at in other

probably XXX when I have you million to the we acquisitions, XXX we period, you could So million have for looked if at available – easily. that acquisitions over year that three think

you're just that is not segments most segments, in for I on potential on to to trucks the in the at commercial and is out fill current fertile, follow Great – where shopping up the you're acquisitions US, or add today, moment? environment, UK, guess, looking

certain – areas So said market the return I agreements. SuperCenters, restrictions we the of the I we on it capital employed. don't lot have And want best I framework to we CI, earlier, our have seeing we're a and don't what's the think guess

So that focus that's be in that and UK. to we'll would going a US and be and – both certainly continue CarShop, the the grow

would going to – out business, the earlier, On and the think I we're expect auto see hand us that assuming And to CapEx. on not at going I on in the sheet, building able and CapEx remediate duty heavy in XXXX, or had that lights we're were in to we being just been having because to of the to other active then wanted we then said as of on consolidation the dispose particularly. truck overpay really business sure there's say that mindful not the potential we – balance And would not for off assets we're non-performing acquisitions able really UK focus we area. with be on to all. I be being And and deal

and would that in in tell and Edwards Darren delivering vehicles every showroom have his one showroom the your is about been you UK, I We job the our think you done has closed. by great haven't had this open. in we XX,XXX the five to they that or of it able here To in was amazing. have when in out, had And say we month had don't your perspective, think, the team same that US I obviously, is people people have those US, down given our location. the guys. from and times effort with our great, I this here four And deal mean, been COVID a many close people a because people locations,

in area been has we've that that So I amazing. really done job with think the that

we're I are open at that scale. This look where points us. think all like I where going, open you the have getting. I markets notice we're is So already for we really when as like contiguous. I

side. auto the on that see you'll think I

Great color, thanks, Roger, Tony, and good luck.

Thanks Rick.

comes with Truist. the question Benjamin Your Stephanie next line from of

Stephanie. Hi,

afternoon. good Hi, Tony. Roger. Hi, Hi,

Hi, Stephanie.

as of what are particularly parts service to a can we what for your this demand new group Thanks. used XXXX? believe I you go but at segment seen, switch and the gears and – side, just little premier division, the also drivers we've bit on you through for wanted about key expectations in the maybe truck this here that talk on unit

XXX, is to parts from And the emissions, service. really the costs, cover for the a the we mean, economy, all XXX, freight that's in freight, $X,XXX service duty are it were in there's to them on that values a certainly or small Remember, big where X.X% think snapped new because carriers Guys see was boxes And at the our trying but benefit and we Well, in XXX, fixed seeing coverage, we boxes running of XXX, Spot And that I that truck market XXX, the going that. of are all no sit was as switching of their I market there's just us close units. XXX,XXX. and sales, underwater we doing the or when heavy It's deals a move value It's been when and up. up big all trucks rates we're when a for prices the where the costs equipment truck look used some pent demand And we're when business, is X,XXX QX, return really trucks we you're at be think the the deflate, one months, now commerce look now this retailer trait. tractor, to up that whether forward, it's number sell question the trucks they're to on heavy for the is to heart to going the of as market. We to a on the fleeting and really the can with the well we've market, I And me, in fuel parts up. better they many when think I that had that up X,XXX seen is was, some in on, with our down a technology. up I your go with that's I this. perspective, and big, numbers would us used no a and telematics going ability question pent duty which going? back. demand. there's look 'XX their see in but it's driving to And bodes when 'XX. say up that where it thought and technology, at gives help you the those are

just retail stores. as side, to M&A the And up, your presence your a appetite as talked about side? discussing build out of to follow know helpful. on the really truck dealership well, I out expansion That's your on continuing used build your vehicle as auto broadly commercial you've What's

go one would forward the think of pillars we and it's forward, is in I team strong. our order I going appetite the say to have three

me. much. for so it Got it. Well, Thank you that's

Thank you, Stephanie.

We JP follow Instructions] the with have Morgan. Rajat [Operator a from of line up do Gupta

Hey, last for earlier, sorry. Thanks like on specifically, strong year. the million more how of XXXXone equity in we we curious, has the new just get at I was rate it we in rate the exit you a anything some of could roughly this did getting term? than on color should queue. me you provided given are back run Is been. temporary income expect XXX just PTL in like like – benefit Or near

So is the of good of to kind economy as work a like off recovers? base that

at you is the the looked the I business year. and million, our when business So XXX did number for think

the no is is driven the a that And X% strong, absolutely was guns I return in question quarter. used we utilization sales by loaded. And market think are – X%, prices. absolutely almost – are on rental truck all our the from there

costs our And many, We're we are borrowing are in I think that I the footprint the fact great our Interest flexibility. down. is business our many here up have one leases. that long-term shape. overall because way seeing rates cities, key. signing key. We're think that margin there, which we we're And is when I at way think fleeing major of getting it these are is look some is now we've before. really people leave seen this rented Obviously, never

the sales, holiday. So the I out contract the to I almost rental FedEx rental some UPS, during with had we out on people to had like think and units we of them DHL, think business, the XX,XXX

haven't on back, because lighter of some much freight there's those come area. so the traffic in going And

sale 'XX would turn expected we we go than is we into I is of have remarketing, which have and a fleet on think 'XX. much the gain and better as big

a is logistics think and good have. did obviously, from you at we the we've we're continues culture. brand five really fourth when we great did CapEx we going liquidity, look look and And we is around what really offering, fast over figure there right I X% stronger, I forward. March XXX a been that forward thinking us have I for And at and Horse, were acquisition and we a and market quarter, to our up look at XX,XXX has operation, got alone. lockdowns an take think years, Chicago, almost – they I the at million strong bond the strong, earlier million a that executing revenue million the that be real our in under industry was team real think assume which for locations and people would which that got rate in was in you So is to well out, XXXX in in some And negotiated just will out months the it April. X% regarded XXX to for six and move XXX Black and run that revenue The capital that perspective. last bid

is going maybe be So go have too second in as of the we a but to there, get our low. our properly little to reduced third to order going rental order slots we're trucks quarter. in on and we'll And down forward we've fill to to to get now side, one probably to the right continue those that invest fleet try in problem

month. all better. in areas time every So records that setting overall, And has of many we're never would these I business been say that

Great, good thanks that for color. luck. And

the Thanks for support.

I'll turn are Penske any over time. And this there remarks. the to further call further questions Mr. back no for at

us. question, job. have than superb got everybody cetera. about what healthy. created in Australia, good et also deal think year with. when one Internationally a there's great is we other Italy feel and really that we opportunity and thanks Well, of these areas a I to no we COVID you our every the joining safe XXXX and with business. US issues And done had about Spain and another here and in Germany for Great We everybody's team hope we're dealing on

Thanks. thank here, we'll want see to the Hopefully but quarter. team. some are So on I you line the next

that gentlemen, joining all conclude you now call. for and today's and you Ladies may disconnect. Thank will