EchoPark Reported Record Second Quarter
Adjusted EBITDA*
The CDK Global Software Outage Is Estimated To
Have Reduced Second Quarter GAAP Income Before Taxes By
Approximately $30.0 Million, Or $0.64 In GAAP Diluted Earnings Per
Share
Sonic Automotive, Inc. (“Sonic Automotive,” “Sonic,” the
“Company,” “we” “us” or “our”) (NYSE:SAH), one of the nation’s
largest automotive retailers, today reported financial results for
the second quarter ended June 30, 2024.
Second Quarter 2024 Financial
Summary
- Total revenues of $3.5 billion, down 5% year-over-year; total
gross profit of $539.1 million, down 5% year-over-year
- Reported net income of $41.2 million, up 76% year-over-year
($1.18 earnings per diluted share, up 82% year-over-year)
- Reported net income includes the pre-tax effects of $11.6
million in excess compensation expense related to the CDK outage, a
$3.6 million charge related to hail and storm damage, a $1.4
million impairment charge related to real estate held for sale at
previously closed EchoPark Segment stores, and $0.7 million in
severance expense, offset partially by a $3.6 million gain related
to exit of leases and sale of real estate at previously closed
EchoPark Segment stores, net of a $3.6 million tax benefit on the
above net charges
- Excluding these items, adjusted net income* was $51.3 million,
down 22% year-over-year ($1.47 adjusted earnings per diluted
share*, down 20% year-over-year)
- Total reported selling, general and administrative (“SG&A”)
expenses as a percentage of gross profit of 72.9% (72.9% on a
Franchised Dealerships Segment basis, 72.9% on an EchoPark Segment
basis, and 73.7% on a Powersports Segment basis)
- Total adjusted SG&A expenses as a percentage of gross
profit* of 70.7% (69.9% on a Franchised Dealerships Segment basis,
77.7% on an EchoPark Segment basis, and 73.7% on a Powersports
Segment basis)
- EchoPark Segment revenues of $517.3 million, down 14%
year-over-year; record second quarter EchoPark Segment total gross
profit of $51.1 million, up 91% year-over-year; EchoPark Segment
retail used vehicle unit sales volume of 16,641, down 3%
year-over-year
- Reported EchoPark Segment income of $3.9 million and adjusted
EchoPark Segment income* of $1.4 million
- EchoPark Segment adjusted EBITDA* of $7.2 million, up 123%
year-over-year
- Excluding closed stores, EchoPark Segment adjusted EBITDA* was
$9.0 million, a 149% improvement year-over-year
- The CDK Global software outage is estimated to have reduced
second quarter GAAP income before taxes by approximately $30.0
million, and net income by approximately $22.2 million, or $0.64 in
diluted earnings per share
- Approximately $11.6 million ($0.25 in diluted earnings per
share) of the pre-tax CDK impact was related to excess compensation
paid to our teammates as a result of the CDK outage, which is
included as a reconciling item in the non-GAAP reconciliation
tables below
* Represents a non-GAAP financial measure
— please refer to the discussion and reconciliation of non-GAAP
financial measures below.
Commentary David Smith,
Chairman and Chief Executive Officer of Sonic Automotive, stated,
“I'm pleased to report that we continued to make great progress in
our EchoPark Segment performance in the second quarter, with record
second quarter Adjusted EBITDA* that outpaced our previous
projections and sets the stage for continued growth in the second
half of 2024 and beyond. Overall, the Sonic Automotive team
continued to execute at a high level, despite operational
challenges in the last 12 days of the second quarter as a result of
the previously announced CDK Global (“CDK”) software outage. As of
today, Sonic's access to the information systems provided by CDK
has been restored, however we experienced operational disruptions
throughout July related to the functionality of certain CDK
customer lead applications, inventory management applications and
related third-party application integrations with CDK. As a result
of the business disruption caused by the CDK outage, we estimate
our second quarter GAAP income before taxes was negatively impacted
by approximately $30 million, or $0.64 in diluted earnings per
share.”
Jeff Dyke, President of Sonic Automotive, commented, “Despite
the short-term operational challenges associated with the CDK
outage, our team remains dedicated to delivering an outstanding
guest experience and executing our long-term strategic vision.
Throughout the second quarter, we made great progress on our net
300 technician hiring initiative and continued to see improvement
in our used vehicle business in both the Franchised Dealerships and
EchoPark Segments. Given the used vehicle market's continued
improvement, we maintain our guidance for positive quarterly
EchoPark Segment adjusted EBITDA* for the remainder of 2024, which
is expected to help mitigate the continuing effects of margin
normalization in our Franchised Dealerships Segment on consolidated
earnings potential.”
Heath Byrd, Chief Financial Officer of Sonic Automotive, added,
“Our diversified cash flow streams continued to benefit our overall
financial position in the second quarter, despite operational
disruption from the CDK outage. As of June 30, 2024, we had $467
million in cash and floor plan deposits on hand, and approximately
$885 million of total liquidity, before considering unencumbered
real estate. We continue to maintain a conservative balance sheet
approach, with the ability to deploy capital strategically as
market conditions evolve.”
Second Quarter 2024 Segment
Highlights The financial measures discussed below are
results for the second quarter of 2024 with comparisons made to the
second quarter of 2023, unless otherwise noted.
- Franchised Dealerships Segment operating results include:
- Same store revenues down 3%; same store gross profit down
9%
- Same store retail new vehicle unit sales volume down 2%; same
store retail new vehicle gross profit per unit down 29%, to
$3,590
- Same store retail used vehicle unit sales volume up 3%; same
store retail used vehicle gross profit per unit down 14%, to
$1,524
- Same store parts, service and collision repair (“Fixed
Operations”) gross profit up 2%; same store customer pay gross
profit up 2%; same store warranty gross profit up 13%; same store
Fixed Operations gross profit margin up 80 basis points, to
50.4%
- Same store finance and insurance ("F&I") gross profit down
5%; same store F&I gross profit per retail unit of $2,380, down
6%
- On a trailing quarter cost of sales basis, the Franchised
Dealerships Segment had 59 days’ supply of new vehicle inventory
(including in-transit) and 30 days’ supply of used vehicle
inventory
- EchoPark Segment operating results include:
- Revenues of $517.3 million, down 14%; gross profit of $51.1
million, up 91%
- On a same market basis (which excludes closed stores), revenues
were up 10% and gross profit was up 81%
- Retail used vehicle unit sales volume of 16,641, down 3%
- On a same market basis (which excludes closed stores), retail
used vehicle unit sales volume was up 23%
- Reported segment income of $3.9 million, adjusted segment
income* of $1.4 million, and adjusted EBITDA* of $7.2 million
- Reported segment income includes $0.9 million income related to
closed stores (closed stores represent a $1.9 million loss on an
adjusted segment loss* basis and a $1.8 million loss on an adjusted
EBITDA* basis)
- Excluding closed stores, reported segment income was $3.0
million, adjusted segment income* was $3.3 million, and adjusted
EBITDA* was $9.0 million
- On a trailing quarter cost of sales basis, the EchoPark Segment
had 38 days’ supply of used vehicle inventory
- Powersports Segment operating results include:
- Revenues of $39.6 million, down 12%; gross profit of $10.7
million, down 16%
- Segment income of $0.5 million and adjusted EBITDA* of $2.3
million
* Represents a non-GAAP financial measure
- please refer to the discussion and reconciliation of non-GAAP
financial measures below.
Dividend Sonic’s Board of
Directors approved a quarterly cash dividend of $0.30 per share,
payable on October 15, 2024 to all stockholders of record on
September 13, 2024.
Second Quarter 2024 Earnings Conference
Call Senior management will hold a conference call today
at 10:00 A.M. (Eastern). Investor presentation and earnings press
release materials will be accessible beginning prior to the
conference call on the Company’s website at
ir.sonicautomotive.com.
To access the live webcast of the conference call, please go to
ir.sonicautomotive.com and select the webcast link at the top of
the page. For telephone access to this conference call, please dial
(877) 407-8289 (domestic) or +1 (201) 689-8341 (international) and
ask to be connected to the Sonic Automotive Second Quarter 2024
Earnings Conference Call. Dial-in access remains available
throughout the live call; however, to ensure you are connected for
the full call we suggest dialing in at least 10 minutes before the
start of the call. A webcast replay will be available following the
call for 14 days at ir.sonicautomotive.com.
About Sonic Automotive Sonic
Automotive, Inc., a Fortune 500 company based in Charlotte, North
Carolina, is on a quest to become the most valuable diversified
automotive retail and service brand in America. Our Company culture
thrives on creating, innovating, and providing industry-leading
guest experiences, driven by strategic investments in technology,
teammates, and ideas that ultimately fulfill ownership dreams,
enrich lives, and deliver happiness to our guests and teammates. As
one of the largest automotive and powersports retailers in America,
we are committed to delivering on this goal while pursuing
expansive growth and taking progressive measures to be the leader
in these categories. Our new platforms, programs, and people are
set to drive the next generation of automotive and powersports
experiences. More information about Sonic Automotive can be found
at www.sonicautomotive.com and ir.sonicautomotive.com.
About EchoPark Automotive
EchoPark Automotive is one of the most comprehensive retailers of
nearly new pre-owned vehicles in America today. Our unique business
model offers a best-in-class shopping and utilizes one of the most
innovative technology-enabled sales strategies in our industry. Our
approach provides a personalized and proven guest-centric buying
process that consistently delivers award-winning guest experiences
and superior value to car buyers nationwide, with savings of up to
$3,000 versus the competition. Consumers have responded by putting
EchoPark among the top national pre-owned vehicle retailers in
products, sales, and service, while receiving the 2023 Consumer
Satisfaction Award from DealerRater. EchoPark’s mission is in the
name: Every Car, Happy Owner. This drives the experience for guests
and differentiates EchoPark from the competition. More information
about EchoPark Automotive can be found at www.echopark.com.
Forward-Looking Statements
Included herein are forward-looking statements, including
statements regarding the CDK outage, anticipated future EchoPark
profitability and anticipated future EchoPark adjusted EBITDA.
There are many factors that affect management’s views about future
events and trends of the Company’s business. These factors involve
risks and uncertainties that could cause actual results or trends
to differ materially from management’s views, including, without
limitation, the ultimate impact of the CDK outage on the Company,
economic conditions in the markets in which we operate, supply
chain disruptions and manufacturing delays, labor shortages, the
impacts of inflation and increases in interest rates, new and used
vehicle industry sales volume, future levels of consumer demand for
new and used vehicles, anticipated future growth in each of our
operating segments, the success of our operational strategies, the
rate and timing of overall economic expansion or contraction, the
integration of recent or future acquisitions, and the risk factors
described in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2023 and other reports and information filed
with the United States Securities and Exchange Commission (the
“SEC”). The Company does not undertake any obligation to update
forward-looking information, except as required under federal
securities laws and the rules and regulations of the SEC. Due to
rounding, numbers presented throughout this and other documents may
not add up precisely to the totals provided and percentages may not
precisely reflect the absolute figures.
Non-GAAP Financial Measures
This press release and the attached financial tables contain
certain non-GAAP financial measures as defined under SEC rules,
such as adjusted net income, adjusted earnings per diluted share,
adjusted SG&A expenses as a percentage of gross profit,
adjusted segment income, and adjusted EBITDA. As required by SEC
rules, the Company has provided reconciliations of these non-GAAP
financial measures to the most directly comparable GAAP financial
measures in the schedules included in this press release. The
Company believes that these non-GAAP financial measures improve the
transparency of the Company’s disclosures and provide a meaningful
presentation of the Company’s results.
Sonic Automotive, Inc. Results
of Operations (Unaudited)
Results of Operations -
Consolidated
Three Months Ended June
30,
Better /
(Worse)
Six Months Ended June
30,
Better /
(Worse)
2024
2023
% Change
2024
2023
% Change
(In millions, except per share
amounts)
Revenues:
Retail new vehicles
$
1,552.6
$
1,608.2
(3
)%
$
3,008.4
$
3,051.0
(1
)%
Fleet new vehicles
26.2
28.3
(7
)%
45.8
47.1
(3
)%
Total new vehicles
1,578.8
1,636.5
(4
)%
3,054.2
3,098.1
(1
)%
Used vehicles
1,186.2
1,305.9
(9
)%
2,401.8
2,650.8
(9
)%
Wholesale vehicles
71.3
91.5
(22
)%
148.6
177.0
(16
)%
Total vehicles
2,836.3
3,033.9
(7
)%
5,604.6
5,925.9
(5
)%
Parts, service and collision repair
444.1
443.7
—
%
890.8
874.2
2
%
Finance, insurance and other, net
172.6
175.3
(2
)%
341.6
344.0
(1
)%
Total revenues
3,453.0
3,652.9
(5
)%
6,837.0
7,144.1
(4
)%
Cost of sales:
Retail new vehicles
(1,454.8
)
(1,466.8
)
1
%
(2,814.2
)
(2,771.5
)
(2
)%
Fleet new vehicles
(25.2
)
(27.0
)
7
%
(44.1
)
(45.0
)
2
%
Total new vehicles
(1,480.0
)
(1,493.8
)
1
%
(2,858.3
)
(2,816.5
)
(1
)%
Used vehicles
(1,141.5
)
(1,274.4
)
10
%
(2,310.1
)
(2,589.3
)
11
%
Wholesale vehicles
(71.9
)
(92.5
)
22
%
(149.9
)
(174.9
)
14
%
Total vehicles
(2,693.4
)
(2,860.7
)
6
%
(5,318.3
)
(5,580.7
)
5
%
Parts, service and collision repair
(220.5
)
(223.3
)
1
%
(443.4
)
(440.9
)
(1
)%
Total cost of sales
(2,913.9
)
(3,084.0
)
6
%
(5,761.7
)
(6,021.6
)
4
%
Gross profit
539.1
568.9
(5
)%
1,075.3
1,122.5
(4
)%
Selling, general and administrative
expenses
(393.0
)
(391.9
)
—
%
(785.3
)
(804.7
)
2
%
Impairment charges
(1.4
)
(62.6
)
NM
(2.4
)
(62.6
)
NM
Depreciation and amortization
(37.0
)
(36.1
)
(2
)%
(73.2
)
(70.5
)
(4
)%
Operating income (loss)
107.7
78.3
38
%
214.4
184.7
16
%
Other income (expense):
Interest expense, floor plan
(22.2
)
(17.0
)
(31
)%
(42.5
)
(31.5
)
(35
)%
Interest expense, other, net
(29.3
)
(28.9
)
(1
)%
(58.3
)
(57.3
)
(2
)%
Other income (expense), net
(0.5
)
0.1
NM
(0.4
)
0.2
NM
Total other income (expense)
(52.0
)
(45.8
)
(14
)%
(101.2
)
(88.6
)
(14
)%
Income (loss) before taxes
55.7
32.5
71
%
113.2
96.1
18
%
Provision for income taxes - benefit
(expense)
(14.5
)
(9.1
)
(59
)%
(30.0
)
(25.0
)
(20
)%
Net income (loss)
$
41.2
$
23.4
76
%
$
83.2
$
71.1
17
%
Basic earnings (loss) per common share
$
1.21
$
0.66
83
%
$
2.45
$
2.00
23
%
Basic weighted-average common shares
outstanding
34.0
35.3
4
%
34.0
35.6
4
%
Diluted earnings (loss) per common
share
$
1.18
$
0.65
82
%
$
2.39
$
1.95
23
%
Diluted weighted-average common shares
outstanding
34.9
36.0
3
%
34.8
36.5
5
%
Dividends declared per common share
$
0.30
$
0.29
3
%
$
0.60
$
0.57
5
%
NM = Not Meaningful
Franchised Dealerships Segment -
Reported
Three Months Ended June
30,
Better /
(Worse)
Six Months Ended June
30,
Better /
(Worse)
2024
2023
% Change
2024
2023
% Change
(In millions, except unit and
per unit data)
Revenues:
Retail new vehicles
$
1,530.9
$
1,583.3
(3
)%
$
2,970.8
$
3,004.3
(1
)%
Fleet new vehicles
26.2
28.3
(7
)%
45.8
47.1
(3
)%
Total new vehicles
1,557.1
1,611.6
(3
)%
3,016.6
3,051.4
(1
)%
Used vehicles
732.1
774.5
(5
)%
1,461.4
1,542.0
(5
)%
Wholesale vehicles
48.4
55.6
(13
)%
96.9
114.0
(15
)%
Total vehicles
2,337.6
2,441.7
(4
)%
4,574.9
4,707.4
(3
)%
Parts, service and collision repair
434.4
433.4
—
%
874.3
857.2
2
%
Finance, insurance and other, net
124.2
132.2
(6
)%
243.8
249.4
(2
)%
Total revenues
2,896.2
3,007.3
(4
)%
5,693.0
5,814.0
(2
)%
Gross Profit:
Retail new vehicles
94.9
136.9
(31
)%
189.0
270.9
(30
)%
Fleet new vehicles
1.0
1.3
(23
)%
1.7
2.1
(19
)%
Total new vehicles
95.9
138.2
(31
)%
190.7
273.0
(30
)%
Used vehicles
38.7
44.5
(13
)%
79.6
85.3
(7
)%
Wholesale vehicles
(0.5
)
(1.0
)
50
%
(0.7
)
1.0
(170
)%
Total vehicles
134.1
181.7
(26
)%
269.6
359.3
(25
)%
Parts, service and collision repair
219.0
215.4
2
%
439.7
425.0
3
%
Finance, insurance and other, net
124.2
132.2
(6
)%
243.8
249.4
(2
)%
Total gross profit
477.3
529.3
(10
)%
953.1
1,033.7
(8
)%
Selling, general and administrative
expenses
(347.9
)
(316.1
)
(10
)%
(686.4
)
(647.3
)
(6
)%
Impairment charges
—
—
NM
(1.0
)
—
NM
Depreciation and amortization
(30.4
)
(27.9
)
(9
)%
(60.2
)
(54.5
)
(10
)%
Operating income (loss)
99.0
185.3
(47
)%
205.5
331.9
(38
)%
Other income (expense):
Interest expense, floor plan
(18.0
)
(11.9
)
(51
)%
(34.0
)
(21.8
)
(56
)%
Interest expense, other, net
(27.8
)
(27.5
)
(1
)%
(55.6
)
(54.4
)
(2
)%
Other income (expense), net
(0.5
)
—
NM
(0.5
)
0.1
NM
Total other income (expense)
(46.3
)
(39.4
)
(18
)%
(90.1
)
(76.1
)
(18
)%
Income (loss) before taxes
52.7
145.9
(64
)%
115.4
255.8
(55
)%
Add: Impairment charges
—
—
NM
1.0
—
NM
Segment income (loss)
$
52.7
$
145.9
(64
)%
$
116.4
$
255.8
(54
)%
Unit Sales Volume:
Retail new vehicles
26,512
27,358
(3
)%
51,809
51,897
—
%
Fleet new vehicles
514
590
(13
)%
893
1,031
(13
)%
Total new vehicles
27,026
27,948
(3
)%
52,702
52,928
—
%
Used vehicles
25,668
25,197
2
%
51,334
50,304
2
%
Wholesale vehicles
5,248
5,516
(5
)%
10,353
10,999
(6
)%
Retail new & used vehicles
52,180
52,555
(1
)%
103,143
102,201
1
%
Used-to-New Ratio
0.97
0.92
5
%
0.99
0.97
2
%
Gross Profit Per Unit:
Retail new vehicles
$
3,579
$
5,003
(28
)%
$
3,649
$
5,221
(30
)%
Fleet new vehicles
$
1,885
$
2,099
(10
)%
$
1,809
$
2,065
(12
)%
New vehicles
$
3,547
$
4,942
(28
)%
$
3,618
$
5,159
(30
)%
Used vehicles
$
1,508
$
1,765
(15
)%
$
1,550
$
1,695
(9
)%
Finance, insurance and other, net
$
2,380
$
2,516
(5
)%
$
2,364
$
2,440
(3
)%
NM = Not Meaningful
Note: Reported Franchised Dealerships
Segment results include (i) same store results from the “Franchised
Dealerships Segment - Same Store” table below and (ii) the effects
of acquisitions, open points, dispositions and holding company
impacts for the periods reported. All currently operating
franchised dealership stores are included within the same store
group as of the first full month following the first anniversary of
the store’s opening or acquisition.
Franchised Dealerships Segment - Same
Store
Three Months Ended June
30,
Better /
(Worse)
Six Months Ended June
30,
Better /
(Worse)
2024
2023
% Change
2024
2023
% Change
(In millions, except unit and
per unit data)
Revenues:
Retail new vehicles
$
1,530.6
$
1,566.5
(2
)%
$
2,964.6
$
2,964.3
—
%
Fleet new vehicles
26.2
28.4
(8
)%
45.8
47.2
(3
)%
Total new vehicles
1,556.8
1,594.9
(2
)%
3,010.4
3,011.5
—
%
Used vehicles
731.9
766.2
(4
)%
1,457.0
1,519.8
(4
)%
Wholesale vehicles
48.3
54.7
(12
)%
96.5
112.1
(14
)%
Total vehicles
2,337.0
2,415.8
(3
)%
4,563.9
4,643.4
(2
)%
Parts, service and collision repair
434.3
430.0
1
%
872.6
847.5
3
%
Finance, insurance and other, net
124.2
130.9
(5
)%
243.4
246.2
(1
)%
Total revenues
2,895.5
2,976.7
(3
)%
5,679.9
5,737.1
(1
)%
Gross Profit:
Retail new vehicles
95.1
135.7
(30
)%
188.8
267.8
(29
)%
Fleet new vehicles
1.0
1.2
(17
)%
1.6
2.1
(24
)%
Total new vehicles
96.1
136.9
(30
)%
190.4
269.9
(29
)%
Used vehicles
39.1
44.3
(12
)%
79.6
84.3
(6
)%
Wholesale vehicles
(0.5
)
(0.5
)
—
%
(0.6
)
1.4
(143
)%
Total vehicles
134.7
180.7
(25
)%
269.4
355.6
(24
)%
Parts, service and collision repair
218.8
213.5
2
%
438.2
419.6
4
%
Finance, insurance and other, net
124.2
130.9
(5
)%
243.4
246.2
(1
)%
Total gross profit
$
477.7
$
525.1
(9
)%
$
951.0
$
1,021.4
(7
)%
Unit Sales Volume:
Retail new vehicles
26,505
26,953
(2
)%
51,688
50,975
1
%
Fleet new vehicles
514
590
(13
)%
893
1,031
(13
)%
Total new vehicles
27,019
27,543
(2
)%
52,581
52,006
1
%
Used vehicles
25,660
24,873
3
%
51,169
49,454
3
%
Wholesale vehicles
5,243
5,430
(3
)%
10,317
10,812
(5
)%
Retail new & used vehicles
52,165
51,826
1
%
102,857
100,429
2
%
Used-to-New Ratio
0.97
0.90
8
%
0.99
0.95
4
%
Gross Profit Per Unit:
Retail new vehicles
$
3,590
$
5,033
(29
)%
$
3,653
$
5,254
(30
)%
Fleet new vehicles
$
1,885
$
2,099
(10
)%
$
1,809
$
2,065
(12
)%
New vehicles
$
3,557
$
4,970
(28
)%
$
3,622
$
5,191
(30
)%
Used vehicles
$
1,524
$
1,779
(14
)%
$
1,555
$
1,705
(9
)%
Finance, insurance and other, net
$
2,380
$
2,526
(6
)%
$
2,366
$
2,451
(3
)%
Note: All currently operating franchised
dealership stores are included within the same store group as of
the first full month following the first anniversary of the store’s
opening or acquisition.
EchoPark Segment -
Reported
Three Months Ended June
30,
Better /
(Worse)
Six Months Ended June
30,
Better /
(Worse)
2024
2023
% Change
2024
2023
% Change
(In millions, except unit and
per unit data)
Revenues:
Retail new vehicles
$
—
$
—
—
%
$
—
$
1.0
(100
)%
Used vehicles
448.9
524.0
(14
)%
931.7
1,096.5
(15
)%
Wholesale vehicles
21.9
35.5
(38
)%
50.7
62.5
(19
)%
Total vehicles
470.8
559.5
(16
)%
982.4
1,160.0
(15
)%
Finance, insurance and other, net
46.5
41.1
13
%
94.3
91.1
4
%
Total revenues
517.3
600.6
(14
)%
1,076.7
1,251.1
(14
)%
Gross Profit:
Retail new vehicles
—
—
—
%
—
0.1
(100
)%
Used vehicles
4.7
(14.3
)
133
%
10.0
(26.2
)
138
%
Wholesale vehicles
(0.1
)
—
(100
)%
(0.6
)
1.2
(150
)%
Total vehicles
4.6
(14.3
)
132
%
9.4
(24.9
)
138
%
Finance, insurance and other, net
46.5
41.1
13
%
94.3
91.1
4
%
Total gross profit
51.1
26.8
91
%
103.7
66.2
57
%
Selling, general and administrative
expenses
(37.2
)
(66.6
)
44
%
(82.8
)
(140.4
)
41
%
Impairment charges
(1.4
)
(62.6
)
NM
(1.4
)
(62.6
)
NM
Depreciation and amortization
(5.6
)
(7.4
)
24
%
(11.1
)
(14.4
)
23
%
Operating income (loss)
6.9
(109.8
)
106
%
8.4
(151.2
)
106
%
Other income (expense):
Interest expense, floor plan
(3.8
)
(4.8
)
21
%
(7.6
)
(9.3
)
18
%
Interest expense, other, net
(0.7
)
(0.9
)
22
%
(1.3
)
(1.8
)
28
%
Other income (expense), net
0.1
0.1
NM
—
—
NM
Total other income (expense)
4.4
(5.6
)
179
%
8.9
(11.1
)
180
%
Income (loss) before taxes
2.5
(115.4
)
102
%
(0.5
)
(162.3
)
100
%
Add: Impairment charges
1.4
62.6
NM
1.4
62.6
NM
Segment income (loss)
$
3.9
$
(52.8
)
107
%
$
0.9
$
(99.7
)
101
%
Unit Sales Volume:
Retail new vehicles
—
—
—
%
—
11
(100
)%
Used vehicles
16,641
17,084
(3
)%
34,622
37,064
(7
)%
Wholesale vehicles
2,593
3,235
(20
)%
5,587
6,151
(9
)%
Gross Profit Per Unit:
Total used vehicle and F&I
$
3,078
$
1,569
96
%
$
3,014
$
1,750
72
%
NM = Not Meaningful
EchoPark Segment - Same
Market
Three Months Ended June
30,
Better /
(Worse)
Six Months Ended June
30,
Better /
(Worse)
2024
2023
% Change
2024
2023
% Change
(In millions, except unit and
per unit data)
Revenues:
Used vehicles
$
448.9
$
410.0
9
%
$
922.1
$
843.7
9
%
Wholesale vehicles
21.9
26.3
(17
)%
47.4
44.2
7
%
Total vehicles
470.8
436.3
8
%
969.5
887.9
9
%
Finance, insurance and other, net
47.3
32.6
45
%
94.8
70.9
34
%
Total revenues
518.1
468.9
10
%
1,064.3
958.8
11
%
Gross Profit:
Used vehicles
4.8
(4.3
)
212
%
10.4
(14.1
)
174
%
Wholesale vehicles
(0.2
)
0.4
(150
)%
—
1.6
(100
)%
Total vehicles
4.6
(3.9
)
218
%
10.4
(12.5
)
183
%
Finance, insurance and other, net
47.3
32.6
45
%
94.8
70.9
34
%
Total gross profit
$
51.9
$
28.7
81
%
$
105.2
$
58.4
80
%
Unit Sales Volume:
Used vehicles
16,641
13,529
23
%
34,259
29,080
18
%
Wholesale vehicles
2,593
2,402
8
%
5,378
4,521
19
%
Gross Profit Per Unit:
Total used vehicle and F&I
$
3,127
$
2,091
50
%
$
3,071
$
1,953
57
%
Note: All currently operating EchoPark
stores in a local geographic market are included within the same
market group as of the first full month following the first
anniversary of the market's opening.
Powersports Segment -
Reported
Three Months Ended June
30,
Better /
(Worse)
Six Months Ended June
30,
Better /
(Worse)
2024
2023
% Change
2024
2023
% Change
(In millions, except unit and
per unit data)
Revenues:
Retail new vehicles
$
21.7
$
24.9
(13
)%
$
37.5
$
45.7
(18
)%
Used vehicles
5.3
7.4
(28
)%
8.7
12.3
(29
)%
Wholesale vehicles
0.9
0.4
125
%
1.1
0.5
120
%
Total vehicles
27.9
32.7
(15
)%
47.3
58.5
(19
)%
Parts, service and collision repair
9.7
10.3
(6
)%
16.5
17.0
(3
)%
Finance, insurance and other, net
2.0
2.0
—
%
3.5
3.5
—
%
Total revenues
39.6
45.0
(12
)%
67.3
79.0
(15
)%
Gross Profit:
Retail new vehicles
2.9
4.5
(36
)%
5.2
8.5
(39
)%
Used vehicles
1.3
1.3
—
%
2.2
2.4
(8
)%
Wholesale vehicles
(0.1
)
—
(100
)%
(0.1
)
(0.1
)
—
%
Total vehicles
4.1
5.8
(29
)%
7.3
10.8
(32
)%
Parts, service and collision repair
4.6
5.0
(8
)%
7.7
8.3
(7
)%
Finance, insurance and other, net
2.0
2.0
—
%
3.5
3.5
—
%
Total gross profit
10.7
12.8
(16
)%
18.5
22.6
(18
)%
Selling, general and administrative
expenses
(7.9
)
(9.2
)
14
%
(16.0
)
(17.0
)
6
%
Depreciation and amortization
(1.0
)
(0.8
)
(25
)%
(2.0
)
(1.6
)
(25
)%
Operating income (loss)
1.8
2.8
(36
)%
0.5
4.0
(88
)%
Other income (expense):
Interest expense, floor plan
(0.5
)
(0.3
)
(67
)%
(1.0
)
(0.4
)
(150
)%
Interest expense, other, net
(0.8
)
(0.5
)
(60
)%
(1.3
)
(1.1
)
(18
)%
Other income (expense), net
—
—
NM
0.1
0.1
NM
Total other income (expense)
(1.3
)
(0.8
)
(63
)%
(2.2
)
(1.4
)
(57
)%
Income (loss) before taxes
0.5
2.0
(75
)%
(1.7
)
2.6
(165
)%
Add: Impairment charges
—
—
NM
—
—
NM
Segment income (loss)
$
0.5
$
2.0
(75
)%
$
(1.7
)
$
2.6
(165
)%
Unit Sales Volume:
Retail new vehicles
1,193
1,396
(15
)%
2,038
2,503
(19
)%
Used vehicles
522
691
(24
)%
931
1,135
(18
)%
Wholesale vehicles
18
50
(64
)%
31
57
(46
)%
Gross Profit Per Unit:
Retail new vehicles
$
2,466
$
3,235
(24
)%
$
2,553
$
3,385
(25
)%
Used vehicles
$
2,423
$
1,942
25
%
$
2,318
$
2,093
11
%
Finance, insurance and other, net
$
1,153
$
952
21
%
$
1,172
$
964
22
%
NM = Not Meaningful
Powersports Segment - Same
Store
Three Months Ended June
30,
Better /
(Worse)
Six Months Ended June
30,
Better /
(Worse)
2024
2023
% Change
2024
2023
% Change
(In millions, except unit and
per unit data)
Revenues:
Retail new vehicles
$
21.7
$
24.9
(13
)%
$
37.0
$
45.5
(19
)%
Used vehicles
5.3
7.4
(28
)%
8.0
11.8
(32
)%
Wholesale vehicles
0.9
0.4
125
%
1.2
0.5
140
%
Total vehicles
27.9
32.7
(15
)%
46.2
57.8
(20
)%
Parts, service and collision repair
9.7
10.3
(6
)%
15.8
16.7
(5
)%
Finance, insurance and other, net
2.0
2.0
—
%
3.4
3.5
(3
)%
Total revenues
39.6
45.0
(12
)%
65.4
78.0
(16
)%
Gross Profit:
Retail new vehicles
2.9
4.5
(36
)%
5.1
8.4
(39
)%
Used vehicles
1.3
1.3
—
%
2.0
2.3
(13
)%
Wholesale vehicles
(0.1
)
—
(100
)%
(0.1
)
(0.1
)
—
%
Total vehicles
4.1
5.8
(29
)%
7.0
10.6
(34
)%
Parts, service and collision repair
4.6
5.0
(8
)%
7.4
8.2
(10
)%
Finance, insurance and other, net
2.0
2.0
—
%
3.4
3.5
(3
)%
Total gross profit
$
10.7
$
12.8
(16
)%
$
17.8
$
22.3
(20
)%
Unit Sales Volume:
Retail new vehicles
1,193
1,396
(15
)%
2,021
2,496
(19
)%
Used vehicles
522
691
(24
)%
858
1,092
(21
)%
Wholesale vehicles
18
50
(64
)%
28
56
(50
)%
Retail new & used vehicles
1,715
2,087
(18
)%
2,879
3,588
(20
)%
Used-to-New Ratio
0.44
0.49
(10
)%
0.42
0.44
(5
)%
Gross Profit Per Unit:
Retail new vehicles
$
2,466
$
3,235
(24
)%
$
2,502
$
3,373
(26
)%
Used vehicles
$
2,423
$
1,942
25
%
$
2,336
$
2,064
13
%
Finance, insurance and other, net
$
1,153
$
952
21
%
$
1,182
$
964
23
%
Note: All currently operating powersports
stores are included within the same store group as of the first
full month following the first anniversary of the store’s opening
or acquisition.
Non-GAAP Reconciliation - Consolidated
- SG&A Expenses
Three Months Ended June
30,
Better / (Worse)
2024
2023
Change
% Change
(In millions)
Reported:
Compensation
$
250.9
$
261.0
$
10.1
4
%
Advertising
21.6
22.8
1.2
5
%
Rent
7.7
11.5
3.8
33
%
Other
112.8
96.6
(16.2
)
(17
)%
Total SG&A expenses
$
393.0
$
391.9
$
(1.1
)
—
%
Adjustments:
Acquisition and disposition-related gain
(loss)
$
0.6
$
20.7
Excess compensation related to CDK
outage
(9.6
)
—
Hail and storm damage charges
(3.6
)
(1.9
)
Gain (loss) on exit of leased
dealerships
3.0
(0.4
)
Severance and long-term compensation
charges
(0.7
)
(2.2
)
Total SG&A adjustments
$
(10.3
)
$
16.2
Adjusted:
Total adjusted SG&A expenses
$
382.7
$
408.1
$
25.4
6
%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
46.5
%
45.9
%
(60
)
bps
Advertising
4.0
%
4.0
%
—
bps
Rent
1.4
%
2.0
%
60
bps
Other
21.0
%
17.0
%
(400
)
bps
Total SG&A expenses as a % of gross
profit
72.9
%
68.9
%
(400
)
bps
Adjustments:
Acquisition and disposition-related gain
(loss)
0.1
%
2.0
%
Excess compensation related to CDK
outage
(2.1
)%
—
%
Hail and storm damage charges
(0.7
)%
(0.2
)%
Gain (loss) on exit of leased
dealerships
0.6
%
—
%
Severance and long-term compensation
charges
(0.1
)%
(0.2
)%
Total effect of adjustments
(2.2
)%
1.6
%
Adjusted:
Total adjusted SG&A expenses as a % of
gross profit
70.7
%
70.5
%
(20
)
bps
Reported:
Total gross profit
$
539.1
$
568.9
$
(29.8
)
(5
)%
Adjustments:
Excess compensation related to CDK
outage
$
2.0
$
—
Used vehicle inventory valuation
adjustment
—
10.0
Total adjustments
$
2.0
$
10.0
Adjusted:
Total adjusted gross profit
$
541.1
$
578.9
$
(37.8
)
(7
)%
Non-GAAP Reconciliation - Consolidated
- SG&A Expenses (Continued)
Six Months Ended June
30,
Better / (Worse)
2024
2023
Change
% Change
(In millions)
Reported:
Compensation
$
498.1
$
519.7
$
21.6
4
%
Advertising
43.9
48.9
5.0
10
%
Rent
17.1
22.8
5.7
25
%
Other
226.2
213.3
(12.9
)
(6
)%
Total SG&A expenses
$
785.3
$
804.7
$
19.4
2
%
Adjustments:
Acquisition and disposition-related gain
(loss)
$
0.6
$
20.7
Closed store accrued expenses
(2.1
)
—
Excess compensation related to CDK
outage
(9.6
)
—
Hail and storm damage charges
(3.6
)
(1.9
)
Gain (loss) on exit of leased
dealerships
3.0
(0.4
)
Severance and long-term compensation
charges
(5.0
)
(4.2
)
Total SG&A adjustments
$
(16.7
)
$
14.2
Adjusted:
Total adjusted SG&A expenses
$
768.6
$
818.9
$
50.3
6
%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
46.3
%
46.3
%
—
bps
Advertising
4.1
%
4.4
%
30
bps
Rent
1.6
%
2.0
%
40
bps
Other
21.0
%
19.0
%
(200
)
bps
Total SG&A expenses as a % of gross
profit
73.0
%
71.7
%
(130
)
bps
Adjustments:
Acquisition and disposition-related gain
(loss)
0.1
%
0.9
%
Closed store accrued expenses
(0.2
)%
—
%
Excess compensation related to CDK
outage
(1.0
)%
—
%
Hail and storm damage charges
(0.4
)%
(0.1
)%
Gain (loss) on exit of leased
dealerships
0.3
%
—
%
Severance and long-term compensation
charges
(0.5
)%
(0.2
)%
Total effect of adjustments
(1.7
)%
0.6
%
Adjusted:
Total adjusted SG&A expenses as a % of
gross profit
71.3
%
72.3
%
80
bps
Reported:
Total gross profit
$
1,075.3
$
1,122.5
$
(47.2
)
(4
)%
Adjustments:
Excess compensation related to CDK
outage
$
2.0
$
—
Used vehicle inventory valuation
adjustment
—
10.0
Total adjustments
$
2.0
$
10.0
Adjusted:
Total adjusted gross profit
$
1,077.3
$
1,132.5
$
(55.2
)
(5
)%
Non-GAAP Reconciliation - Franchised
Dealerships Segment - SG&A Expenses
Three Months Ended June
30,
Better / (Worse)
2024
2023
Change
% Change
(In millions)
Reported:
Compensation
$
221.9
$
219.0
$
(2.9
)
(1
)%
Advertising
14.3
8.7
(5.6
)
(64
)%
Rent
10.3
9.4
(0.9
)
(10
)%
Other
101.4
79.0
(22.4
)
(28
)%
Total SG&A expenses
$
347.9
$
316.1
$
(31.8
)
(10
)%
Adjustments:
Acquisition and disposition-related gain
(loss)
$
—
$
20.9
Excess compensation related to CDK
outage
(9.2
)
—
Hail and storm damage charges
(3.6
)
(1.9
)
Total SG&A adjustments
$
(12.8
)
$
19.0
Adjusted:
Total adjusted SG&A expenses
$
335.1
$
335.1
$
—
—
%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
46.5
%
41.4
%
(510
)
bps
Advertising
3.0
%
1.6
%
(140
)
bps
Rent
2.2
%
1.8
%
(40
)
bps
Other
21.2
%
14.9
%
(630
)
bps
Total SG&A expenses as a % of gross
profit
72.9
%
59.7
%
(1,320
)
bps
Adjustments:
Acquisition and disposition-related gain
(loss)
—
%
4.0
%
Excess compensation related to CDK
outage
(2.2
)%
—
%
Hail and storm damage charges
(0.8
)%
(0.4
)%
Total effect of adjustments
(3.0
)%
3.6
%
Adjusted:
Total adjusted SG&A expenses as a % of
gross profit
69.9
%
63.3
%
(660
)
bps
Reported:
Total gross profit
$
477.3
$
529.3
$
(52.0
)
(10
)%
Adjustments:
Excess compensation related to CDK
outage
$
2.0
$
—
Total adjustments
$
2.0
$
—
Adjusted:
Total adjusted gross profit
$
479.3
$
529.3
$
(50.0
)
(9
)%
Non-GAAP Reconciliation - Franchised
Dealerships Segment - SG&A Expenses (Continued)
Six Months Ended June
30,
Better / (Worse)
2024
2023
Change
% Change
(In millions)
Reported:
Compensation
$
438.3
$
432.8
$
(5.5
)
(1
)%
Advertising
29.6
18.6
(11.0
)
(59
)%
Rent
20.4
19.5
(0.9
)
(5
)%
Other
198.1
176.4
(21.7
)
(12
)%
Total SG&A expenses
$
686.4
$
647.3
$
(39.1
)
(6
)%
Adjustments:
Acquisition and disposition-related gain
(loss)
$
—
$
20.9
Excess compensation related to CDK
outage
(9.2
)
—
Hail and storm damage charges
(3.6
)
(1.9
)
Severance and long-term compensation
charges
(2.2
)
—
Total SG&A adjustments
$
(15.0
)
$
19.0
Adjusted:
Total adjusted SG&A expenses
$
671.4
$
666.3
$
(5.1
)
(1
)%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
46.0
%
41.9
%
(410
)
bps
Advertising
3.1
%
1.8
%
(130
)
bps
Rent
2.1
%
1.9
%
(20
)
bps
Other
20.8
%
17.0
%
(380
)
bps
Total SG&A expenses as a % of gross
profit
72.0
%
62.6
%
(940
)
bps
Adjustments:
Acquisition and disposition-related gain
(loss)
—
%
2.1
%
Excess compensation related to CDK
outage
(1.1
)%
—
%
Hail and storm damage charges
(0.4
)%
(0.2
)%
Severance and long-term compensation
charges
(0.2
)%
—
%
Total effect of adjustments
(1.7
)%
1.9
%
Adjusted:
Total adjusted SG&A expenses as a % of
gross profit
70.3
%
64.5
%
(580
)
bps
Reported:
Total gross profit
$
953.1
$
1,033.7
$
(80.6
)
(8
)%
Adjustments:
Excess compensation related to CDK
outage
$
2.0
$
—
Total adjustments
$
2.0
$
—
Adjusted:
Total adjusted gross profit
$
955.1
$
1,033.7
$
(78.6
)
(8
)%
Non-GAAP Reconciliation - EchoPark
Segment - SG&A Expenses
Three Months Ended June
30,
Better / (Worse)
2024
2023
Change
% Change
(In millions)
Reported:
Compensation
$
23.3
$
35.4
$
12.1
34
%
Advertising
7.0
13.7
6.7
49
%
Rent
(2.7
)
2.1
4.8
229
%
Other
9.6
15.4
5.8
38
%
Total SG&A expenses
$
37.2
$
66.6
$
29.4
44
%
Adjustments:
Acquisition and disposition-related gain
(loss)
$
0.6
$
(0.2
)
Excess compensation related to CDK
outage
(0.4
)
—
Gain (loss) on exit of leased
dealerships
3.0
(0.4
)
Severance and long-term compensation
charges
(0.7
)
(2.2
)
Total SG&A adjustments
$
2.5
$
(2.8
)
Adjusted:
Total adjusted SG&A expenses
$
39.7
$
63.8
$
24.1
38
%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
45.6
%
132.2
%
8,660
bps
Advertising
13.6
%
51.2
%
3,760
bps
Rent
(5.2
)%
8.0
%
1,320
bps
Other
18.9
%
57.1
%
3,820
bps
Total SG&A expenses as a % of gross
profit
72.9
%
248.5
%
17,560
bps
Adjustments:
Acquisition and disposition-related gain
(loss)
1.2
%
(5.4
)%
Excess compensation related to CDK
outage
(0.8
)%
—
%
Gain (loss) on exit of leased
dealerships
5.7
%
(10.7
)%
Severance and long-term compensation
charges
(1.3
)%
(58.9
)%
Total effect of adjustments
4.8
%
(75.0
)%
Adjusted:
Total adjusted SG&A expenses as a % of
gross profit
77.7
%
173.5
%
9,580
bps
Reported:
Total gross profit
$
51.1
$
26.8
$
24.3
91
%
Adjustments:
Used vehicle inventory valuation
adjustment
$
—
$
10.0
Total adjustments
$
—
$
10.0
Adjusted:
Total adjusted gross profit
$
51.1
$
36.8
$
14.3
39
%
Non-GAAP Reconciliation - EchoPark
Segment - SG&A Expenses (Continued)
Six Months Ended June
30,
Better / (Worse)
2024
2023
Change
% Change
(In millions)
Reported:
Compensation
$
48.5
$
75.1
$
26.6
35
%
Advertising
13.6
29.5
15.9
54
%
Rent
(3.4
)
3.2
6.6
206
%
Other
24.1
32.6
8.5
26
%
Total SG&A expenses
$
82.8
$
140.4
$
57.6
41
%
Adjustments:
Acquisition and disposition-related gain
(loss)
$
0.6
$
(0.2
)
Closed store accrued expenses
(2.1
)
—
Excess compensation related to CDK
outage
(0.4
)
—
Gain (loss) on exit of leased
dealerships
3.0
(0.4
)
Severance and long-term compensation
charges
(2.8
)
(4.2
)
Total SG&A adjustments
$
(1.7
)
$
(4.8
)
Adjusted:
Total adjusted SG&A expenses
$
81.1
$
135.6
$
54.5
40
%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
46.7
%
113.4
%
6,670
bps
Advertising
13.1
%
44.5
%
3,140
bps
Rent
(3.3
)%
4.9
%
820
bps
Other
23.4
%
49.2
%
2,580
bps
Total SG&A expenses as a % of gross
profit
79.9
%
212.0
%
13,210
bps
Adjustments:
Acquisition and disposition-related gain
(loss)
0.6
%
(1.4
)%
Closed store accrued expenses
(2.1
)%
—
%
Excess compensation related to CDK
outage
(0.4
)%
—
%
Gain (loss) on exit of leased
dealerships
3.0
%
(2.8
)%
Severance and long-term compensation
charges
(2.8
)%
(29.9
)%
Total effect of adjustments
(1.7
)%
(34.1
)%
Adjusted:
Total adjusted SG&A expenses as a % of
gross profit
78.2
%
177.9
%
9,970
bps
Reported:
Total gross profit
$
103.7
$
66.2
$
37.5
57
%
Adjustments:
Used vehicle inventory valuation
adjustment
$
—
$
10.0
Total adjustments
$
—
$
10.0
Adjusted:
Total adjusted gross profit
$
103.7
$
76.2
$
27.5
36
%
Non-GAAP Reconciliation - Powersports
Segment - SG&A Expenses
Three Months Ended June
30,
Better / (Worse)
2024
2023
Change
% Change
(In millions)
Reported:
Compensation
$
5.7
$
6.6
$
0.9
14
%
Advertising
0.4
0.4
—
—
%
Rent
0.1
—
(0.1
)
—
%
Other
1.7
2.2
0.5
23
%
Total SG&A expenses
$
7.9
$
9.2
$
1.3
14
%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
53.2
%
51.3
%
(190
)
bps
Advertising
3.8
%
2.9
%
(90
)
bps
Rent
0.9
%
0.2
%
(70
)
bps
Other
15.8
%
17.2
%
140
bps
Total SG&A expenses as a % of gross
profit
73.7
%
71.6
%
(210
)
bps
Reported:
Total gross profit
$
10.7
$
12.8
$
(2.1
)
(16
)%
Six Months Ended June
30,
Better / (Worse)
2024
2023
Change
% Change
(In millions)
Reported:
Compensation
$
11.4
$
11.8
$
0.4
3
%
Advertising
0.8
0.8
—
—
%
Rent
0.1
0.1
—
—
%
Other
3.7
4.3
0.6
14
%
Total SG&A expenses
$
16.0
$
17.0
$
1.0
6
%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
61.4
%
52.4
%
(900
)
bps
Advertising
4.3
%
3.5
%
(80
)
bps
Rent
0.7
%
0.3
%
(40
)
bps
Other
20.3
%
19.0
%
(130
)
bps
Total SG&A expenses as a % of gross
profit
86.7
%
75.2
%
(1,150
)
bps
Reported:
Total gross profit
$
18.5
$
22.6
$
(4.1
)
(18
)%
Non-GAAP Reconciliation - Franchised
Dealerships Segment - Income (Loss) Before Taxes and Segment Income
(Loss)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
% Change
2024
2023
% Change
(In millions)
Reported:
Income (loss) before taxes
$
52.7
$
145.9
(64
)%
$
115.4
$
255.8
(55
)%
Add: Impairment charges
—
—
1.0
—
Segment income (loss)
$
52.7
$
145.9
(64
)%
$
116.4
$
255.8
(54
)%
Adjustments:
Acquisition and disposition-related (gain)
loss
$
—
$
(20.9
)
$
—
$
(20.9
)
Excess compensation related to CDK
outage
11.2
—
11.2
—
Hail and storm damage charges
3.6
1.9
3.6
1.9
Severance and long-term compensation
charges
—
—
2.2
—
Total pre-tax adjustments
$
14.8
$
(19.0
)
$
17.0
$
(19.0
)
Adjusted:
Segment income (loss)
$
67.5
$
126.9
(47
)%
$
133.4
$
236.8
(44
)%
Non-GAAP Reconciliation - EchoPark
Segment - Income (Loss) Before Taxes and Segment Income
(Loss)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
% Change
2024
2023
% Change
(In millions)
Reported:
Income (loss) before taxes
$
2.5
$
(115.4
)
102
%
$
(0.5
)
$
(162.3
)
100
%
Add: Impairment charges
1.4
62.6
1.4
62.6
Segment income (loss)
$
3.9
$
(52.8
)
107
%
$
0.9
$
(99.7
)
101
%
Adjustments:
Acquisition and disposition-related (gain)
loss
$
(0.6
)
$
0.2
$
(0.6
)
$
0.2
Closed store accrued expenses
—
—
2.1
—
Excess compensation related to CDK
outage
0.4
—
0.4
—
Loss (gain) on exit of leased
dealerships
(3.0
)
0.4
(3.0
)
0.4
Severance and long-term compensation
charges
0.7
2.2
2.8
4.2
Used vehicle inventory valuation
adjustment
—
10.0
—
10.0
Total pre-tax adjustments
$
(2.5
)
$
12.8
$
1.7
$
14.8
Adjusted:
Segment income (loss)
$
1.4
$
(40.0
)
104
%
$
2.6
$
(84.9
)
103
%
Non-GAAP Reconciliation - Powersports
Segment - Income (Loss) Before Taxes and Segment Income
(Loss)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
% Change
2024
2023
% Change
(In millions)
Reported:
Income (loss) before taxes
$
0.5
$
2.0
(75
)%
$
(1.7
)
$
2.6
(165
)%
Add: Impairment charges
—
—
—
—
Segment income (loss)
$
0.5
$
2.0
(75
)%
$
(1.7
)
$
2.6
(165
)%
Non-GAAP Reconciliation - Consolidated
- Net Income (Loss) and Diluted Earnings (Loss) Per
Share
Three Months Ended June 30,
2024
Three Months Ended June 30,
2023
Weighted-
Average
Shares
Amount
Per
Share
Amount
Weighted-
Average
Shares
Amount
Per
Share
Amount
(In millions, except per share
amounts)
Reported net income (loss), diluted
shares, and diluted earnings (loss) per share
34.9
$
41.2
$
1.18
36.0
$
23.4
$
0.65
Adjustments:
Acquisition and disposition-related gain
(loss)
$
(0.6
)
$
(20.7
)
Excess compensation related to CDK
outage
11.6
—
Hail and storm damage charges
3.6
1.9
Impairment charges
1.4
62.6
Loss (gain) on exit of leased
dealerships
(3.0
)
0.4
Severance and long-term compensation
charges
0.7
2.2
Used vehicle inventory valuation
adjustment
—
10.0
Total pre-tax adjustments
$
13.7
$
56.4
Tax effect of above items
(3.6
)
(13.8
)
Adjusted net income (loss), diluted
shares, and diluted earnings (loss) per share
34.9
$
51.3
$
1.47
36.0
$
66.0
$
1.83
Six Months Ended June 30,
2024
Six Months Ended June 30,
2023
Weighted-
Average
Shares
Net Income (Loss)
Per
Share
Amount
Weighted-
Average
Shares
Net Income (Loss)
Per
Share
Amount
(In millions, except per share
amounts)
Reported net income (loss), diluted
shares, and diluted earnings (loss) per share
34.8
$
83.2
$
2.39
36.5
$
71.1
$
1.95
Adjustments:
Acquisition and disposition-related gain
(loss)
$
(0.6
)
$
(20.7
)
Closed store accrued expenses
2.1
—
Excess compensation related to CDK
outage
11.6
—
Hail and storm damage charges
3.6
1.9
Impairment charges
2.4
62.6
Loss (gain) on exit of leased
dealerships
(3.0
)
0.4
Severance and long-term compensation
charges
5.0
4.2
Used vehicle inventory valuation
adjustment
—
10.0
Total pre-tax adjustments
$
21.1
$
58.4
Tax effect of above items
(5.6
)
(14.3
)
Adjusted net income (loss), diluted
shares, and diluted earnings (loss) per share
34.8
$
98.7
$
2.84
36.5
$
115.2
$
3.16
Non-GAAP Reconciliation - Adjusted
EBITDA
Three Months Ended June 30,
2024
Three Months Ended June 30,
2023
Franchised
Dealerships
Segment
EchoPark
Segment
Powersports
Segment
Total
Franchised
Dealerships
Segment
EchoPark
Segment
Powersports
Segment
Total
(In millions)
Net income (loss)
$
41.2
$
23.4
Provision for income taxes
14.5
9.1
Income (loss) before taxes
$
52.7
$
2.5
$
0.5
$
55.7
$
145.9
$
(115.4
)
$
2.0
$
32.5
Non-floor plan interest (1)
26.5
0.7
0.8
28.0
25.8
0.8
0.6
27.2
Depreciation and amortization (2)
31.6
5.4
1.0
38.0
29.5
7.4
0.8
37.7
Stock-based compensation expense
5.9
—
—
5.9
5.6
—
—
5.6
Loss (gain) on exit of leased
dealerships
—
(3.0
)
—
(3.0
)
—
0.4
—
0.4
Impairment charges
—
1.4
—
1.4
—
62.6
—
62.6
Loss on debt extinguishment
0.6
—
—
0.6
—
—
—
—
Severance and long-term compensation
charges
—
0.8
—
0.8
—
2.2
—
2.2
Excess compensation related to CDK
outage
11.2
0.4
—
11.6
—
—
—
—
Acquisition and disposition related (gain)
loss
(0.3
)
(1.0
)
—
(1.3
)
(20.9
)
0.2
—
(20.7
)
Hail and storm damage charges
3.6
—
—
3.6
1.9
—
—
1.9
Used vehicle inventory valuation
adjustment
—
—
—
—
—
10.0
—
10.0
Adjusted EBITDA
$
131.8
$
7.2
$
2.3
$
141.3
$
187.8
$
(31.8
)
$
3.4
$
159.4
Six Months Ended June 30,
2024
Six Months Ended June 30,
2023
Franchised
Dealerships
Segment
EchoPark
Segment
Powersports
Segment
Total
Franchised
Dealerships
Segment
EchoPark
Segment
Powersports
Segment
Total
(In millions)
Net income (loss)
$
83.2
$
71.1
Provision for income taxes
30.0
25.0
Income (loss) before taxes
$
115.4
$
(0.5
)
$
(1.7
)
$
113.2
$
255.8
$
(162.3
)
$
2.6
$
96.1
Non-floor plan interest (1)
52.8
1.3
1.3
55.4
51.2
1.7
1.2
54.1
Depreciation & amortization (2)
63.1
10.8
2.0
75.9
57.7
14.4
1.5
73.6
Stock-based compensation expense
10.3
—
—
10.3
10.6
—
—
10.6
Loss (gain) on exit of leased
dealerships
—
(3.0
)
—
(3.0
)
—
0.4
—
0.4
Impairment charges
1.0
1.4
—
2.4
—
62.6
—
62.6
Loss on debt extinguishment
0.6
—
—
0.6
—
—
—
—
Severance and long-term compensation
charges
2.2
2.9
—
5.1
—
4.2
—
4.2
Excess compensation related to CDK
outage
11.2
0.4
—
11.6
—
—
—
—
Acquisition and disposition related (gain)
loss
(0.3
)
(1.0
)
—
(1.3
)
(20.9
)
0.2
—
(20.7
)
Hail and storm damage charges
3.6
—
—
3.6
1.9
—
—
1.9
Used vehicle inventory valuation
adjustment
—
—
—
—
—
10.0
—
10.0
Closed store accrued expenses
$
—
$
2.1
$
—
$
2.1
$
—
$
—
$
—
$
—
Adjusted EBITDA
$
259.9
$
14.4
$
1.6
$
275.9
$
356.3
$
(68.8
)
$
5.3
$
292.8
(1)
Includes interest expense, other, net in
the accompanying consolidated statements of operations, net of any
amortization of debt issuance costs or net debt discount/premium
included in (2) below.
(2)
Includes the following line items from the
accompanying consolidated statements of cash flows: depreciation
and amortization of property and equipment; debt issuance cost
amortization; and debt discount amortization, net of premium
amortization.
Non-GAAP Reconciliation - EchoPark
Segment Operations and Closed Stores
Three Months Ended June 30,
2024
Three Months Ended June 30,
2023
Better / (Worse) %
Change
EchoPark
Operations
Closed
Stores
Total
EchoPark
Segment
EchoPark
Operations
Closed
Stores
Total
EchoPark
Segment
EchoPark
Operations
Closed
Stores
Total
EchoPark
Segment
(In millions, except unit and
per unit data)
Total revenues
$
518.1
$
(0.8
)
$
517.3
$
468.9
$
131.7
$
600.6
10
%
(101
)%
(14
)%
Total gross profit
$
51.9
$
(0.8
)
$
51.1
$
18.8
$
8.0
$
26.8
176
%
(110
)%
91
%
Income (loss) before taxes
$
2.7
$
(0.2
)
$
2.5
$
(32.0
)
$
(83.4
)
$
(115.4
)
108
%
100
%
102
%
Non-floor plan interest (1)
0.9
(0.2
)
0.7
0.4
0.4
0.8
NM
NM
NM
Depreciation and amortization (2)
5.4
—
5.4
5.5
1.9
7.4
NM
NM
NM
Acquisition and disposition-related (gain)
loss
—
(1.0
)
(1.0
)
—
0.2
0.2
NM
NM
NM
Impairment charges
—
1.4
1.4
—
62.6
62.6
NM
NM
NM
Loss (gain) on exit of leased
dealerships
—
(3.0
)
(3.0
)
—
0.4
0.4
NM
NM
NM
Severance and long-term compensation
charges
—
0.8
0.8
—
2.2
2.2
NM
NM
NM
Excess compensation related to CDK
outage
0.4
0.4
—
—
—
NM
NM
NM
Used vehicle inventory valuation
adjustment
—
—
—
7.7
2.3
10.0
NM
NM
NM
Adjusted EBITDA
$
9.0
$
(1.8
)
$
7.2
$
(18.4
)
$
(13.4
)
$
(31.8
)
149
%
87
%
123
%
Used vehicle unit sales volume
16,641
—
16,641
13,529
3,555
17,084
23
%
(100
)%
(3
)%
Total used vehicle and F&I gross
profit per unit
$
3,127
$
—
$
3,078
$
2,091
$
2,387
$
1,569
50
%
(100
)%
96
%
NM = Not Meaningful
Non-GAAP Reconciliation - EchoPark
Segment Operations and Closed Stores (Continued)
Six Months Ended June 30,
2024
Six Months Ended June 30,
2023
Better / (Worse) %
Change
EchoPark
Operations
Closed
Stores
Total
EchoPark
Segment
EchoPark
Operations
Closed
Stores
Total
EchoPark
Segment
EchoPark
Operations
Closed
Stores
Total
EchoPark
Segment
(In millions, except unit and
per unit data)
Total revenues
$
1,064.3
$
12.4
$
1,076.7
$
958.8
$
292.3
$
1,251.1
11
%
(96
)%
(14
)%
Total gross profit
$
105.0
$
(1.3
)
$
103.7
$
47.9
$
18.3
$
66.2
119
%
(107
)%
57
%
Income (loss) before taxes
$
6.0
$
(6.5
)
$
(0.5
)
$
(60.1
)
$
(102.2
)
$
(162.3
)
110
%
94
%
100
%
Non-floor plan interest (1)
1.1
0.2
1.3
1.0
0.7
1.7
NM
NM
NM
Depreciation and amortization (2)
10.8
—
10.8
10.8
3.6
14.4
NM
NM
NM
Acquisition and disposition-related (gain)
loss
—
(1.0
)
(1.0
)
—
0.2
0.2
NM
NM
NM
Closed store accrued expenses
—
2.1
2.1
—
—
—
NM
NM
NM
Impairment charges
—
1.4
1.4
—
62.6
62.6
NM
NM
NM
Loss (gain) on exit of leased
dealerships
—
(3.0
)
(3.0
)
—
0.4
0.4
NM
NM
NM
Severance and long-term compensation
charges
—
2.9
2.9
—
4.2
4.2
NM
NM
NM
Excess compensation related to CDK
outage
0.4
—
0.4
—
—
—
NM
NM
NM
Used vehicle inventory valuation
adjustment
—
—
—
7.7
2.3
10.0
NM
NM
NM
Adjusted EBITDA
$
18.3
$
(3.9
)
$
14.4
$
(40.6
)
$
(28.2
)
$
(68.8
)
145
%
86
%
121
%
Used vehicle unit sales volume
34,259
363
34,622
29,080
7,984
37,064
18
%
(95
)%
(7
)%
Total used vehicle and F&I gross
profit per unit
$
3,071
$
(1,954
)
$
3,014
$
1,953
$
2,333
$
1,750
57
%
(184
)%
72
%
NM = Not Meaningful
(1)
Includes interest expense, other, net in
the accompanying consolidated statements of operations, net of any
amortization of debt issuance costs or net debt discount/premium
included in (2) below.
(2)
Includes the following line items from the
accompanying consolidated statements of cash flows: depreciation
and amortization of property and equipment; debt issuance cost
amortization; and debt discount amortization, net of premium
amortization.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240805559507/en/
Company Contacts Investor
Inquiries: Heath Byrd, Executive Vice President and Chief
Financial Officer Danny Wieland, Vice President, Investor Relations
& Financial Reporting ir@sonicautomotive.com
Press Inquiries: Sonic Automotive Media Relations
media.relations@sonicautomotive.com
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