Penske Automotive Group, Inc.

Good afternoon and welcome to the Penske Automotive Group fourth quarter of 2020.

Shelly Holgrave, EVP and Chief Financial Officer, Rich Shearing, North American Operations, Randall Seymour, International Operations, and Tony Piccioni, Vice President and Corporate Controller. During the fourth quarter, we acquired Penske Motor Group from a commonly controlled affiliate. As a result, the information contained in today's press release has been retrospectively recast to include the full quarterly and annual results of Penske Motor Group in both periods. which is required by GAAP under Common Control Accounting. We have provided schedules in today's press release to help you better understand the impact of the recast. Additionally, we may include forward-looking statements on today's call about our earnings potential, outlook, and other future events, and we may also discuss certain non-GAAP financial measures, such as EBITDA and adjusted EBITDA. Our future results may vary from our expectations because of risks and uncertainties outlined in the press release today. We have also prominently presented and reconciled any non-GAAP measures to the most directly comparable GAAP measures in this morning's press release and investor presentation, both of which are available on our website. Our future results may vary from our expectations because of risks and uncertainties outlined in the press release under forward-looking statements. I direct you to our SEC filings, including our Form 10-K and previously filed Form 10-Qs for additional discussion and factors that could cause future results to differ materially from expectations. I will now turn the call over to Roger Penske.

Thank you, Tony. Good afternoon, everyone, and thank you for joining us today. Today, I'd like to begin with thanking each of our team members for their hard work and commitment. to exceeding expectations in 2025. Despite several challenges, our business generated another year of strong profitability. I look forward to the future and I'm even more optimistic about PAG. The recent strategic acquisitions of Toyota and Lexus dealerships combined with our existing diversification provide a solid foundation for future growth and improved profitability. During 2025, PHE delivered 485,000 new and used vehicles and nearly 19,000 new and used commercial trucks. We generated $31 billion in revenue. We earned almost $1.3 billion in earnings before taxes and $935 million in net income and generated earnings per share of $14.13. We continue to grow in the US and Italy with the acquisition of two Toyota and two Lexus dealerships and one Ferrari dealership. We followed that up with the announcement of the two Lexus dealerships we plan to acquire in the first quarter. These are located in Orlando, Florida. In total, these acquisitions represent $2 billion in estimated annualized revenue. We also completed strategic divestitures representing approximately $700 million in revenue. These divestitures generated $200 million in proceeds that were redeployed into higher returning assets. We expect to generate another $140 million in proceeds from additional divestitures planned for 2026. In our press release this morning, we announced the 21st consecutive increase in our quarterly dividend. The increase was 2 cents per share to $1.40. Our dividend payout ratio increased to 37.4%, and the forward yield is 3.4%. We repurchased 1.2 million shares of stock, representing 1.8% of our outstanding shares for 182 million. Let me now turn to your attention to the fourth quarter. The automotive, our business was impacted by weaker premium sales in both U.S. and U.K. by tariff and BEV-related pull-forward, unusually high unit sales in the prior related to stop sale, the Land Rover Cyper incidents, which resulted in 800 units of fewer sales and Q4 and the macroeconomic conditions in the UK. For example, our new sales of the German luxury brands were down 20% in the US and 22% in the UK, including the decline of over 2,800 units when compared. These are BEV units when compared to Q4 the prior year. As a result, automotive same-store units delivered declined 8% and use declined 4%. Gross profit per unit retailed in Q4 was $4,689, and it was up $47 per unit sequentially. Gross profit per use unit was $1,770, which was consistent with Q4 in the prior year and in line with seasonal expectations. In the commercial truck segment, PTG outperformed the market. However, the continuing freight recession drove lower new and used unit sales and also impacted our equity income from PTS. In total, PAGQ4 revenue was $7.8 billion, down 4%. The decline in revenue from the lower unit sales coupled with strategic divestitures in dealerships impacted the quarter revenue by 200 million. EBT was 256 million, net income 186 million, and earnings per share was $2.83. On an adjusted basis, EBT was 263 million, net income 192 million, and earnings per share was $2.91. We estimate fourth quarter EBT was impacted by $29 million or $0.32 a share. First item was the UK social programs with approximately $3 million. The cyber event with Jag Land Rover, $8 million. Continued freight weakness impacted by Premier Truck 11 and PTS by 5, and cost of strategic divestitures of approximately $2 million. Additionally, when you compare Q4 of the prior year, a higher tax rate reduced net income by approximately $8 million, or $0.12 per share. This time, I'd like to turn it over to Rich Turing to discuss our North American operations. Rich?