Sonic Automotive Reports All-Time Record Fourth Quarter and Full Year Revenues and Earnings Per Share

Rhea-AI Summary

Sonic Automotive (NYSE:SAH) announced the successful acquisition of RFJ Auto, expected to contribute $3.2 billion in revenue in 2022. The company reported record fourth-quarter revenues of $3.2 billion, a 13.8% increase year-over-year, and net income of $96.3 million ($2.25 per diluted share). Sonic's Board approved a 108% increase to its quarterly dividend, raising it to $0.25 per share. The company aims for significant growth with EchoPark, expanding its reach to 90% of the U.S. population by 2025.

Positive

• Record fourth-quarter revenues of $3.2 billion, up 13.8% year-over-year.
• Net income increased to $96.3 million ($2.25 per diluted share).
• 108% increase in quarterly cash dividend to $0.25 per share.
• Acquisition of RFJ Auto expected to add $3.2 billion in annual revenues in 2022.

Negative

• Same store new vehicle unit sales volume down 19.2%.
• EchoPark reported a pre-tax loss of $26.8 million.

Completes RFJ Auto Acquisition, Expected to Add $3.2 Billion in 2022 Revenues

Raises Quarterly Cash Dividend By 108%

CHARLOTTE, N.C.--(BUSINESS WIRE)-- Sonic Automotive, Inc. (“Sonic Automotive,” “Sonic” or the “Company”) (NYSE:SAH), one of the nation’s largest automotive retailers, today reported financial results for the fourth quarter and fiscal year ended December 31, 2021.

Key Fourth Quarter Highlights

• Record fourth quarter revenues of $3.2 billion, up 13.8% year-over-year
• Record fourth quarter income from continuing operations before taxes of $122.1 million, up 35.1% year-over-year
  • Record fourth quarter adjusted income from continuing operations before taxes* of $145.4 million, up 69.9% year-over-year
• Record fourth quarter net income from continuing operations of $96.3 million ($2.25 per diluted share)
  • All-time record quarterly adjusted net income from continuing operations* of $113.7 million ($2.66 per diluted share)
• Record low fourth quarter selling, general and administrative (“SG&A”) expenses as a percentage of gross profit of 64.7% (57.7% on a Franchised Dealerships Segment basis, a decrease of 730 basis points year-over-year)
  • Record low fourth quarter adjusted SG&A expenses as a percentage of gross profit* of 63.3% (57.5% on a Franchised Dealerships Segment basis, a decrease of 770 basis points year-over-year)
• All-time record quarterly total Finance & Insurance (“F&I”) gross profit per retail unit of $2,415, up 18.9% year-over-year
• Record fourth quarter EchoPark revenues of $579.2 million, up 49.7% year-over-year
• Sonic’s Board of Directors approved a 108% increase to the Company’s quarterly cash dividend, to $0.25 per share, payable on April 14, 2022 to all stockholders of record on March 15, 2022
• Since the end of the third quarter of 2021, Sonic repurchased approximately one million shares of its Class A Common Stock for an aggregate purchase price of approximately $50.4 million
• In December, Sonic completed the acquisition of RFJ Auto Partners, Inc. and its subsidiaries (collectively, “RFJ Auto”), a top-15 U.S. dealer group by total revenues, which is expected to contribute $3.2 billion to revenues in fiscal year 2022
• In October, Sonic amended its credit facilities to increase revolver and floor plan commitments to $2.95 billion from $1.8 billion, in addition to completing an offering of $1.15 billion aggregate principal amount of unsecured senior notes due 2029 and 2031 at a blended rate of 4.73% to fund the acquisition of RFJ Auto and to repay existing debt

* Please refer to the discussion and reconciliation of Non-GAAP Financial Measures below.

Commentary

David Smith, Chief Executive Officer of Sonic Automotive, commented, “We are very proud of our performance during the fourth quarter, which capped off a year of significant achievements for our company. Sonic delivered all-time record revenues and earnings for the full year, completed the largest acquisition in company history, and executed on our EchoPark expansion plan, exceeding our previously stated target of reaching 25% of the U.S. population by year end. We achieved these results while navigating unprecedented supply chain issues, record low levels of new vehicle inventory, record-high new and used vehicle pricing, and human capital challenges due to the ongoing pandemic. We are especially thankful to our teammates for their continued dedication and commitment, positioning our company for both top- and bottom-line growth as we move forward in the next phase of our long-term strategic growth plan for Sonic and EchoPark.”

“In 2021, we continued the nationwide expansion of our EchoPark pre-owned vehicle brand, now reaching over 30% of the U.S. population, on our way to our goal of reaching 90% population coverage by 2025,” said Jeff Dyke, President of Sonic Automotive. “With our progress to-date in growing our EchoPark distribution and digital network, we continue to focus on modernizing our brand while providing the same high-quality, guest-centric experience. Beyond EchoPark, our landmark acquisition of RFJ Auto and five other franchised dealership acquisitions in 2021 bolstered our geographic coverage and brand portfolio, which we expect will drive continued growth in 2022 and beyond.”

Heath Byrd, Chief Financial Officer of Sonic Automotive, added, “During the fourth quarter, we continued to strengthen Sonic’s balance sheet and liquidity resources, including increasing the total capacity of our credit facilities to $2.95 billion. We also benefited from attractive market conditions, issuing $1.15 billion of unsecured senior notes to fund the RFJ Auto acquisition and repay existing debt. Additionally, since the end of the third quarter of 2021, Sonic has repurchased approximately one million shares of its Class A Common Stock for an aggregate purchase price of approximately $50.4 million. As announced today, our Board of Directors declared a 108% increase of the Company’s quarterly cash dividend to $0.25 per share. All of these actions reflect the strong performance and cash flow generation of our business model and our commitment to delivering stockholder returns.”

Fourth Quarter Financial Highlights

The financial measures discussed below are results for the fourth quarter of 2021 with comparisons made to the fourth quarter of 2020, unless otherwise noted.

• Record fourth quarter revenues of $3.2 billion, up 13.8% year-over-year; record fourth quarter income from continuing operations before taxes of $122.1 million, up 35.1% year-over-year
  • Record fourth quarter adjusted income from continuing operations before taxes* of $145.4 million, up 69.9% year-over-year
• Record fourth quarter net income from continuing operations of $96.3 million ($2.25 per diluted share), compared to fourth quarter 2020 net income from continuing operations of $57.5 million ($1.31 per diluted share)
  • All-time record quarterly adjusted net income from continuing operations* of $113.7 million ($2.66 per diluted share), compared to fourth quarter 2020 adjusted net income from continuing operations* of $65.8 million ($1.50 per diluted share)
• Record low fourth quarter SG&A expenses as a percentage of gross profit of 64.7%, a 190-basis point decrease from 66.6% in the fourth quarter of 2020
  • Record low fourth quarter adjusted SG&A expenses as a percentage of gross profit* of 63.3%, a 480-basis point decrease from 68.1% in the fourth quarter of 2020
• All-time record quarterly total F&I gross profit per retail unit of $2,415, up 18.9% year-over-year
• Franchised Dealerships Segment operating results include:
  • Same store revenues down 0.7%, gross profit up 28.7%
  • Same store new vehicle unit sales volume down 19.2%; same store new vehicle gross profit per unit up 127.9%, to $6,661
  • Same store retail used vehicle unit sales volume down 13.2%; same store retail used vehicle gross profit per unit up 98.2%, to $2,087
  • Same store parts, service and collision repair gross profit up 6.6%; same store customer pay gross profit up 18.3%; same store warranty gross profit down 13.6%; same store gross margin down 100 basis points, to 49.7%
  • Same store F&I gross profit up 0.5%; all-time record reported Franchised Dealerships Segment F&I gross profit per retail unit of $2,349, up 19.5%
  • On a trailing quarter cost of sales basis, Franchised Dealerships Segment new vehicle inventory had approximately 16 days’ supply (11 days excluding the effect of the RFJ Auto acquisition), and Franchised Dealerships Segment used vehicle inventory had approximately 46 days’ supply (36 days excluding the effect of the RFJ Auto acquisition)
  • Franchised Dealerships Segment operating results include partial month results for the franchised dealerships included in the RFJ Auto acquisition in December 2021
    
• EchoPark Segment operating results include:
  • Record fourth quarter EchoPark revenues of $579.2 million, up 49.7% year-over-year
  • Record fourth quarter EchoPark retail used vehicle unit sales volume of 15,649, up 5.4% year-over-year
  • EchoPark market share decreased 160 basis points, to 3.2% of the 1-4-year old vehicle segment in our current markets (on a same market basis, EchoPark share was 5.6% of the 1-4-year old vehicle segment)
  • EchoPark reported pre-tax loss of $26.8 million, adjusted pre-tax loss* of $20.3 million, and adjusted EBITDA* loss of $14.6 million (including market expansion-related losses of $9.8 million, $9.8 million and $8.5 million, respectively)
  • On a trailing quarter cost of sales basis, EchoPark Segment used vehicle inventory had approximately 70 days’ supply (39 days excluding the effect of the RFJ Auto acquisition in December 2021)
  • EchoPark Segment results include partial month results for 11 Northwest Motorsport pre-owned vehicle stores that were included in the RFJ Auto acquisition in December 2021

* Please refer to the discussion and reconciliation of Non-GAAP Financial Measures below.

Full Year Financial Highlights

The financial measures discussed below are results for the full year 2021 with comparisons made to the full year 2020, unless otherwise noted.

• All-time record revenues of $12.4 billion, up 26.9% year-over-year; all-time record income from continuing operations before taxes of $458.2 million, up from a loss of $34.8 million in 2020 (including the effects of a $268.0 million non-cash goodwill impairment charge in 2020)
  • All-time record adjusted income from continuing operations before taxes* of $481.5 million, up 113.8% year-over-year
• All-time record net income from continuing operations of $348.9 million ($8.06 per diluted share), compared to 2020 net loss from continuing operations of $50.7 million (loss of $1.19 per diluted share)
  • All-time record adjusted net income from continuing operations* of $366.3 million ($8.46 per diluted share), compared to 2020 adjusted net income from continuing operations* of $168.9 million ($3.85 per diluted share)
• All-time record low SG&A expenses as a percentage of gross profit of 66.6%, a 570-basis point decrease from 72.3% in 2020
  • All-time record low adjusted SG&A expenses as a percentage of gross profit* of 66.2%, a 670-basis point decrease from 72.9% in 2020
• All-time record total F&I gross profit per retail unit of $2,250, up 15.3% year-over-year
• Franchised Dealerships Segment operating results include:
  • Same store revenues up 18.5%, gross profit up 33.6%
  • Same store new vehicle unit sales volume up 7.9%; same store new vehicle gross profit per unit up 78.9%, to $4,513
  • Same store retail used vehicle unit sales volume up 3.0%; same store retail used vehicle gross profit per unit up 38.6%, to $1,763
  • Same store parts, service and collision repair gross profit up 13.0%; same store customer pay gross profit up 20.6%; same store warranty gross profit down 2.8%; same store gross margin up 30 basis points, to 50.2%
  • Same store F&I gross profit up 22.3%; all-time record reported Franchised Dealerships Segment F&I gross profit per retail unit of $2,160, up 17.0%
  • Franchised Dealerships Segment operating results include partial month results for the franchised dealerships included in the RFJ Auto acquisition in December 2021
• EchoPark Segment operating results include:
  • All-time record EchoPark revenues of $2.3 billion, up 65.3% year-over-year
  • All-time record EchoPark retail used vehicle unit sales volume of 77,835, up 36.2% year-over-year
  • EchoPark reported pre-tax loss of $72.1 million, adjusted pre-tax loss* of $65.6 million, and adjusted EBITDA* loss of $46.3 million (including market expansion-related losses of $35.6 million, $35.6 million and $31.3 million, respectively)
  • EchoPark Segment results include partial month results for 11 Northwest Motorsport pre-owned vehicle stores that were included in the RFJ Auto acquisition in December 2021

* Please refer to the discussion and reconciliation of Non-GAAP Financial Measures below.

Completion of RFJ Auto Acquisition

In December 2021, the Company completed the acquisition of RFJ Auto. This acquisition represents one of the largest transactions in automotive retail history and is expected to propel Sonic Automotive into the top-five largest dealer groups in the U.S. (as measured by total revenues). With 33 locations in seven states and a portfolio of 16 automotive brands, the acquisition of RFJ Auto adds six incremental states to Sonic’s geographic coverage and five additional brands to its portfolio, including the highest volume Chrysler Dodge Jeep RAM dealer in the world in Dave Smith Motors. In addition to further expanding and diversifying Sonic’s business, the transaction is expected to add $3.2 billion in annual revenues, which are incremental to the Company’s previously stated target of $25 billion in total revenues by 2025.

Dividend

Sonic’s Board of Directors approved a quarterly cash dividend of $0.25 per share payable on April 14, 2022 to all stockholders of record on March 15, 2022, raising the quarterly dividend by 108%, from $0.12 per share.

Fourth Quarter 2021 Earnings Conference Call

Senior management will hold a conference call today at 11:00 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.

For telephone access to this conference call, please register in advance using this link:
https://www.incommglobalevents.com/registration/q4inc/9700/sonic-automotive-inc-q4-2021-earnings-conference-call/

After registering, you will receive a confirmation that includes dial-in numbers and a unique conference call access code and PIN for entry. Registration remains available through the live call, however, to ensure you are connected for the full call we suggest registering at least 10 minutes before the start of the call.

A conference call replay will be available beginning two hours 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 automotive retailer 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 retailers in America, we are committed to delivering on this goal while pursuing expansive growth and taking progressive measures to be the leader in this category. Our new platforms, programs, and people are set to drive the next generation of automotive 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 fastest growing and most comprehensive retailers of nearly new pre-owned vehicles in America today. Our rapid growth plan is expected to bring our unique business model to 90% of the U.S. population by 2025, utilizing 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. We believe EchoPark is on pace to become the #1 retailer in the nearly new pre-owned vehicle market by 2025, and is already making its mark by earning the 2021 Consumer Satisfaction Award from DealerRater, expanding its Owner Experience Centers, developing an all-new digital ecommerce platform and focusing on growing its brand nationwide. EchoPark’s mission is in its name: Every Car deserves a Happy Owner. This drives the car buying 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 expected future revenue from acquisitions, future revenue levels, future profitability, new and used vehicle inventory levels, the opening of additional EchoPark markets, and future population coverage. 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, 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, anticipated future growth in our EchoPark Segment, the success of our operational strategies, the rate and timing of overall economic expansion or contraction, the integration of the RFJ Auto acquisition, the effect of the COVID-19 pandemic and related government-imposed restrictions on operations, and the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 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.

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 income from continuing operations before taxes, adjusted net income from continuing operations, adjusted earnings per diluted share from continuing operations, adjusted SG&A expenses as a percentage of gross profit, adjusted pre-tax loss 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)
Note: All reported results for the three months ended and year ended December 31, 2021 include the partial month impact of the acquisition of RFJ Auto that closed on December 6, 2021.
Consolidated Results of Operations
	Three Months Ended December 31,								Better / (Worse)			Twelve Months Ended December 31,								Better / (Worse)
	2021				2020				% Change			2021				2020				% Change
	(In millions, except per share amounts)
Revenues:
New vehicles	$	1,351.9			$	1,323.4			2.2	%		$	5,118.0			$	4,281.2			19.5	%
Used vehicles		1,210.9				959.9			26.1	%			4,877.2				3,564.8			36.8	%
Wholesale vehicles		110.5				59.2			86.7	%			367.2				197.4			86.0	%
Total vehicles		2,673.3				2,342.5			14.1	%			10,362.4				8,043.4			28.8	%
Parts, service and collision repair		360.1				319.1			12.8	%			1,396.8				1,233.7			13.2	%
Finance, insurance and other, net		151.2				137.0			10.4	%			637.2				489.9			30.1	%
Total revenues		3,184.6				2,798.6			13.8	%			12,396.4				9,767.0			26.9	%
Cost of Sales:
New vehicles		(1,193.9	)			(1,242.8	)		3.9	%			(4,656.7	)			(4,047.1	)		(15.1	)%
Used vehicles		(1,164.3	)			(941.4	)		(23.7	)%			(4,745.3	)			(3,458.8	)		(37.2	)%
Wholesale vehicles		(107.3	)			(62.0	)		(73.1	)%			(357.3	)			(198.3	)		(80.2	)%
Total vehicles		(2,465.5	)			(2,246.2	)		(9.8	)%			(9,759.3	)			(7,704.2	)		(26.7	)%
Parts, service and collision repair		(188.5	)			(163.3	)		(15.4	)%			(722.8	)			(639.2	)		(13.1	)%
Total cost of sales		(2,654.0	)			(2,409.5	)		(10.1	)%			(10,482.1	)			(8,343.4	)		(25.6	)%
Gross profit		530.6				389.1			36.4	%			1,914.3				1,423.6			34.5	%
Selling, general and administrative expenses		(343.3	)			(259.0	)		(32.5	)%			(1,274.7	)			(1,028.7	)		(23.9	)%
Impairment charges		(0.1	)			(1.2	)		91.7	%			(0.1	)			(270.0	)		100.0	%
Depreciation and amortization		(27.4	)			(23.1	)		(18.6	)%			(101.1	)			(91.0	)		(11.1	)%
Operating income (loss)		159.8				105.8			51.0	%			538.4				33.9			NM
Other income (expense):
Interest expense, floor plan		(4.0	)			(5.4	)		25.9	%			(16.7	)			(27.2	)		38.6	%
Interest expense, other, net		(17.8	)			(10.0	)		(78.0	)%			(48.0	)			(41.6	)		(15.4	)%
Other income (expense), net		(15.9	)			—			(100.0	)%			(15.5	)			0.1			NM
Total other income (expense)		(37.7	)			(15.4	)		(144.8	)%			(80.2	)			(68.7	)		(16.7	)%
Income (loss) from continuing operations before taxes		122.1				90.4			35.1	%			458.2				(34.8	)		NM
Provision for income taxes for continuing operations - benefit (expense)		(25.8	)			(32.9	)		21.6	%			(109.3	)			(15.9	)		(587.4	)%
Income (loss) from continuing operations		96.3				57.5			67.5	%			348.9				(50.7	)		788.2	%
Discontinued operations:
Income (loss) from discontinued operations before taxes		—				(0.2	)		100.0	%			—				(1.0	)		100.0	%
Provision for income taxes for discontinued operations - benefit (expense)		—				—			—	%			—				0.3			(100.0	)%
Income (loss) from discontinued operations		—				(0.2	)		100.0	%			—				(0.7	)		100.0	%
Net income (loss)	$	96.3			$	57.3			68.1	%		$	348.9			$	(51.4	)		778.8	%
Basic earnings (loss) per common share:
Earnings (loss) per share from continuing operations	$	2.35			$	1.37			71.5	%		$	8.43			$	(1.19	)		808.4	%
Earnings (loss) per share from discontinued operations		—				—			—	%			—				(0.02	)		100.0	%
Earnings (loss) per common share	$	2.35			$	1.37			71.5	%		$	8.43			$	(1.21	)		796.7	%
Weighted-average common shares outstanding		40,940				41,874			2.2	%			41,404				42,483			2.5	%
Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations	$	2.25			$	1.31			71.8	%		$	8.06			$	(1.19	)		777.3	%
Earnings (loss) per share from discontinued operations		—				(0.01	)		100.0	%			—				(0.02	)		100.0	%
Earnings (loss) per common share	$	2.25			$	1.30			73.1	%		$	8.06			$	(1.21	)		766.1	%
Weighted-average common shares outstanding(1)		42,786				44,022			2.8	%			43,280				42,483			(1.9	)%
Dividends declared per common share	$	0.12			$	0.10			20.0	%		$	0.46			$	0.40			15.0	%
NM = Not Meaningful
(1) Basic weighted-average shares used for twelve months ended December 31, 2020 due to net loss on reported GAAP basis.

Franchised Dealerships Segment - Reported
	Three Months Ended December 31,								Better / (Worse)			Twelve Months Ended December 31,								Better / (Worse)
	2021				2020				% Change			2021				2020				% Change
	(In millions, except unit and per unit data)
Revenues:
New vehicles	$	1,347.3			$	1,323.4			1.8	%		$	5,109.0			$	4,281.2			19.3	%
Used vehicles		727.7				627.8			15.9	%			2,901.0				2,345.9			23.7	%
Wholesale vehicles		74.0				49.2			50.4	%			257.2				168.7			52.5	%
Total vehicles		2,149.0				2,000.4			7.4	%			8,267.2				6,795.8			21.7	%
Parts, service and collision repair		346.3				307.9			12.5	%			1,340.4				1,194.4			12.2	%
Finance, insurance and other, net		110.1				103.4			6.5	%			443.5				357.8			24.0	%
Total revenues		2,605.4				2,411.7			8.0	%			10,051.1				8,348.0			20.4	%
Gross Profit:
New vehicles		157.3				80.6			95.2	%			460.3				234.1			96.6	%
Used vehicles		50.8				25.8			96.9	%			188.1				122.9			53.1	%
Wholesale vehicles		0.4				(2.9	)		113.8	%			0.6				(0.8	)		175.0	%
Total vehicles		208.5				103.5			101.4	%			649.0				356.2			82.2	%
Parts, service and collision repair		171.1				156.1			9.6	%			673.1				595.4			13.1	%
Finance, insurance and other, net		110.1				103.4			6.5	%			443.5				357.8			24.0	%
Total gross profit		489.7				363.0			34.9	%			1,765.6				1,309.4			34.8	%
Selling, general and administrative expenses		(282.8	)			(235.9	)		(19.9	) %			(1,076.9	)			(933.7	)		(15.3	)%
Impairment charges		—				(1.2	)		100.0	%			—				(270.0	)		100.0	%
Depreciation and amortization		(22.5	)			(20.2	)		(11.4	) %			(84.8	)			(79.9	)		(6.1	)%
Operating income (loss)		184.4				105.7			74.5	%			603.9				25.8			NM
Other income (expense):
Interest expense, floor plan		(2.5	)			(4.5	)		44.4	%			(11.8	)			(24.0	)		50.8	%
Interest expense, other, net		(17.1	)			(9.8	)		(74.5	)%			(46.3	)			(40.7	)		(13.8	)%
Other income (expense), net		(15.9	)			—			(100.0	)%			(15.5	)			0.1			NM
Total other income (expense)		(35.5	)			(14.3	)		(148.3	)%			(73.6	)			(64.6	)		(13.9	)%
Income (loss) before taxes		148.9				91.4			62.9	%			530.3				(38.8	)		NM
Add: impairment charges		—				1.2			100.0	%			—				270.0			100.0	%
Segment income (loss)	$	148.9			$	92.6			60.8	%		$	530.3			$	231.2			129.4	%
Unit Sales Volume:
New vehicles		25,721				27,566			(6.7	)%			103,358				93,281			10.8	%
Used vehicles		23,397				25,490			(8.2	)%			105,457				101,864			3.5	%
Wholesale vehicles		5,424				6,463			(16.1	)%			25,128				24,879			1.0	%
Retail new & used vehicles		49,118				53,056			(7.4	)%			208,815				195,145			7.0	%
Used:New Ratio		0.91				0.92			(1.6	)%			1.02				1.09			(6.6	)%
Gross Profit Per Unit:
New vehicles	$	6,115			$	2,924			109.1	%		$	4,453			$	2,510			77.4	%
Used vehicles	$	2,172			$	1,014			114.2	%		$	1,784			$	1,207			47.8	%
Finance, insurance and other, net	$	2,349			$	1,965			19.5	%		$	2,160			$	1,846			17.0	%
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 December 31,							Better / (Worse)			Twelve Months Ended December 31,							Better / (Worse)
	2021			2020				% Change			2021			2020				% Change
	(In millions, except unit and per unit data)
Revenues:
New vehicles	$	1,198.9		$	1,319.8			(9.2	)%		$	4,943.3		$	4,246.1			16.4	%
Used vehicles		686.1			625.1			9.8	%			2,846.8			2,321.2			22.6	%
Wholesale vehicles		65.9			49.0			34.5	%			248.4			167.2			48.6	%
Total vehicles		1,950.9			1,993.9			(2.2	)%			8,038.5			6,734.5			19.4	%
Parts, service and collision repair		333.2			306.5			8.7	%			1,322.0			1,178.0			12.2	%
Finance, insurance and other, net		97.8			97.3			0.5	%			409.5			334.5			22.4	%
Total revenues		2,381.9			2,397.7			(0.7	)%			9,770.0			8,247.0			18.5	%
Gross Profit:
New vehicles		147.8			80.3			84.1	%			448.6			232.3			93.1	%
Used vehicles		45.9			26.7			71.9	%			182.5			127.8			42.8	%
Wholesale vehicles		2.2			(2.8	)		NM				7.9			(0.5	)		NM
Total vehicles		195.9			104.2			88.0	%			639.0			359.6			77.7	%
Parts, service and collision repair		165.5			155.3			6.6	%			663.0			587.0			12.9	%
Finance, insurance and other, net		97.8			97.3			0.5	%			409.5			334.5			22.4	%
Total gross profit	$	459.2		$	356.8			28.7	%		$	1,711.5		$	1,281.1			33.6	%
Unit Sales Volume:
New vehicles		22,186			27,467			(19.2	)%			99,396			92,124			7.9	%
Used vehicles		22,006			25,360			(13.2	)%			103,529			100,484			3.0	%
Wholesale vehicles		4,973			6,436			(22.7	)%			24,583			24,623			(0.2	)%
Retail new & used vehicles		44,192			52,827			(16.3	)%			202,925			192,608			5.4	%
Used:New Ratio		0.99			0.92			7.4	%			1.04			1.09			(4.5	)%
Gross Profit Per Unit:
New vehicles	$	6,661		$	2,923			127.9	%		$	4,513		$	2,522			78.9	%
Used vehicles	$	2,087		$	1,053			98.2	%		$	1,763		$	1,272			38.6	%
Finance, insurance and other, net	$	2,228		$	1,857			20.0	%		$	2,034		$	1,749			16.3	%
NM = Not Meaningful
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 December 31,								Better / (Worse)			Twelve Months Ended December 31,								Better / (Worse)
	2021				2020				% Change			2021				2020				% Change
	(In millions, except unit and per unit data)
Revenues:
New vehicles	$	4.6			$	—			100.0	%		$	9.0			$	—			100.0	%
Used vehicles		497.0				343.3			44.8	%			2,032.6				1,258.2			61.5	%
Wholesale vehicles		36.5				10.0			265.0	%			110.0				28.7			283.3	%
Total vehicles		538.1				353.3			52.3	%			2,151.6				1,286.9			67.2	%
Finance, insurance and other, net		41.1				33.6			22.3	%			193.7				132.1			46.6	%
Total revenues		579.2				386.9			49.7	%			2,345.3				1,419.0			65.3	%
Gross Profit:
New vehicles		0.7				—			100.0	%			1.1				—			100.0	%
Used vehicles		(3.7	)			(7.6	)		51.3	%			(55.2	)			(18.0	)		(206.7	)%
Wholesale vehicles		2.8				0.1			NM				9.2				(0.1	)		NM
Total vehicles		(0.2	)			(7.5	)		97.3	%			(44.9	)			(18.1	)		(148.1	)%
Finance, insurance and other, net		41.1				33.6			22.3	%			193.7				132.1			46.6	%
Total gross profit		40.9				26.1			56.7	%			148.8				114.0			30.5	%
Selling, general and administrative expenses		(60.5	)			(23.1	)		(161.9	)%			(197.8	)			(94.9	)		(108.4	)%
Impairment charges		(0.1	)			—			(100.0	)%			(0.1	)			—			(100.0	)%
Depreciation and amortization		(4.8	)			(2.9	)		(65.5	)%			(16.3	)			(11.0	)		(48.2	)%
Operating income (loss)		(24.5	)			0.1			NM				(65.4	)			8.1			(907.4	)%
Other income (expense):
Interest expense, floor plan		(1.5	)			(0.9	)		(66.7	)%			(5.0	)			(3.2	)		(56.3	)%
Interest expense, other, net		(0.8	)			(0.2	)		(300.0	)%			(1.7	)			(0.9	)		(88.9	)%
Other income (expense), net		—				—			—	%			—				—			NM
Total other income (expense)		(2.3	)			(1.1	)		(109.1	)%			(6.7	)			(4.1	)		(63.4	)%
Income (loss) before taxes		(26.8	)			(1.0	)		NM				(72.1	)			4.0			NM
Add: impairment charges		0.1				—			(100.0	)%			0.1				—			(100.0	)%
Segment income (loss)	$	(26.7	)		$	(1.0	)		NM			$	(72.0	)		$	4.0			NM
Unit Sales Volume:
New vehicles		59				—			100.0	%			128				—			100.0	%
Used vehicles		15,649				14,841			5.4	%			77,835				57,161			36.2	%
Wholesale vehicles		2,436				2,004			21.6	%			11,667				7,178			62.5	%
Gross Profit Per Unit:
Total used vehicle and F&I	$	2,344			$	1,770			32.4	%		$	1,762			$	2,013			(12.5	) %
NM = Not Meaningful
Note: Reported EchoPark Segment results include (i) same market results from the “EchoPark Segment - Same Market” table below and (ii) the effects of acquisitions, open points, dispositions and holding company impacts for the periods reported. 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.

EchoPark Segment - Same Market
	Three Months Ended December 31,								Better / (Worse)			Twelve Months Ended December 31,								Better / (Worse)
	2021				2020				% Change			2021				2020				% Change
	(In millions, except unit and per unit data)
Revenues:
New vehicles	$	4.5			$	—			100.0	%		$	8.9			$	—			100.0	%
Used vehicles		342.0				339.0			0.9	%			1,588.4				1,253.9			26.7	%
Wholesale vehicles		27.2				9.9			174.7	%			85.8				28.6			200.0	%
Total vehicles		373.7				348.9			7.1	%			1,683.1				1,282.5			31.2	%
Finance, insurance and other, net		28.5				32.9			(13.4	)%			152.6				131.0			16.5	%
Total revenues		402.2				381.8			5.3	%			1,835.7				1,413.5			29.9	%
Gross Profit:
New vehicles		0.4				—			100.0	%			0.8				—			100.0	%
Used vehicles		(3.4	)			(11.3	)		69.9	%			(43.4	)			(34.6	)		(25.4	)%
Wholesale vehicles		2.3				0.1			NM				7.4				(0.1	)		NM
Total vehicles		(0.7	)			(11.2	)		93.8	%			(35.2	)			(34.7	)		(1.4	)%
Finance, insurance and other, net		28.5				32.9			(13.4	)%			152.6				131.0			16.5	%
Total gross profit	$	27.8			$	21.7			28.1	%		$	117.4			$	96.3			21.9	%
Unit Sales Volume:
New vehicles		59				—			100.0	%			128				—			100.0	%
Used vehicles		10,770				14,654			(26.5	)%			60,815				56,974			6.7	%
Wholesale vehicles		1,644				1,980			(17.0	)%			8,664				7,154			21.1	%
Gross Profit Per Unit:
Total used vehicle and F&I	$	2,288			$	1,706			34.1	%		$	1,776			$	1,704			4.2	%
NM = Not Meaningful
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.

Consolidated - Selling, General and Administrative (“SG&A”) Expenses - Non-GAAP Reconciliation
	Three Months Ended December 31,								Better / (Worse)
	2021				2020				Change				% Change
	(In millions)
Reported:
Compensation	$	226.0			$	176.1			$	(49.9	)		(28.3	)%
Advertising		17.4				10.5				(6.9	)		(65.7	)%
Rent		12.1				13.6				1.5			11.0	%
Other		87.8				58.8				(29.0	)		(49.3	)%
Total SG&A expenses	$	343.3			$	259.0			$	(84.3	)		(32.5	)%
Items of interest:
Long-term compensation charges	$	(6.5	)		$	—
Acquisition and disposition-related gain (loss)		(1.2	)			6.0
Total SG&A adjustments	$	(7.7	)		$	6.0
Adjusted:
Total adjusted SG&A expenses	$	335.6			$	265.0			$	(70.6	)		(26.6	)%
Reported:
SG&A expenses as a % of gross profit:
Compensation		42.6	%			45.2	%			260		bps
Advertising		3.3	%			2.7	%			(60	)	bps
Rent		2.3	%			3.5	%			120		bps
Other		16.5	%			15.2	%			(130	)	bps
Total SG&A expenses as a % of gross profit		64.7	%			66.6	%			190		bps
Items of interest:
Long-term compensation charges		(1.2	)%			—	%
Acquisition and disposition-related gain (loss)		(0.2	)%			1.5	%
Total effect of adjustments		(1.4	)%			1.5	%
Adjusted:
Total adjusted SG&A expenses as a % of gross profit		63.3	%			68.1	%			480		bps

Consolidated - SG&A Expenses - Non-GAAP Reconciliation (Continued)
	Twelve Months Ended December 31,								Better / (Worse)
	2021				2020				Change				% Change
	(In millions)
Reported:
Compensation	$	834.5			$	659.8			$	(174.7	)		(26.5	)%
Advertising		61.6				42.2				(19.4	)		(46.0	)%
Rent		53.2				54.5				1.3			2.4	%
Other		325.4				272.2				(53.2	)		(19.5	)%
Total SG&A expenses	$	1,274.7			$	1,028.7			$	(246.0	)		(23.9	)%
Items of interest:
Long-term compensation charges	$	(6.5	)		$	—
Acquisition and disposition-related gain (loss)		(1.2	)			9.2
Total SG&A adjustments	$	(7.7	)		$	9.2
Adjusted:
Total adjusted SG&A expenses	$	1,267.0			$	1,037.9			$	(229.1	)		(22.1	) %
Reported:
SG&A expenses as a % of gross profit:
Compensation		43.6	%			46.3	%			270		bps
Advertising		3.2	%			3.0	%			(20	)	bps
Rent		2.8	%			3.8	%			100		bps
Other		17.0	%			19.2	%			220		bps
Total SG&A expenses as a % of gross profit		66.6	%			72.3	%			570		bps
Items of interest:
Long-term compensation charges		(0.3	)%			—	%
Acquisition and disposition-related gain (loss)		(0.1	)%			0.6	%
Total effect of adjustments		(0.4	)%			0.6	%
Adjusted:
Total adjusted SG&A expenses as a % of gross profit		66.2	%			72.9	%			670		bps

Franchised Dealerships Segment - SG&A Expenses - Non-GAAP Reconciliation
	Three Months Ended December 31,								Better / (Worse)
	2021				2020				Change				% Change
	(In millions)
Reported:
Compensation	$	189.8			$	160.0			$	(29.8	)		(18.6	)%
Advertising		6.3				6.0				(0.3	)		(5.0	)%
Rent		10.4				12.2				1.8			14.8	%
Other		76.3				57.7				(18.6	)		(32.2	)%
Total SG&A expenses	$	282.8			$	235.9			$	(46.9	)		(19.9	)%
Items of interest:
Acquisition and disposition-related gain (loss)	$	(1.2	)		$	0.8
Total SG&A adjustments	$	(1.2	)		$	0.8
Adjusted:
Total adjusted SG&A expenses	$	281.6			$	236.7			$	(44.9	)		(19.0	)%
Reported:
SG&A expenses as a % of gross profit:
Compensation		38.8	%			44.1	%			530		bps
Advertising		1.3	%			1.7	%			40		bps
Rent		2.1	%			3.4	%			130		bps
Other		15.5	%			15.8	%			30		bps
Total SG&A expenses as a % of gross profit		57.7	%			65.0	%			730		bps
Items of interest:
Acquisition and disposition-related gain (loss)		(0.2	)%			0.2	%
Total effect of adjustments		(0.2	)%			0.2	%
Adjusted:
Total adjusted SG&A expenses as a % of gross profit		57.5	%			65.2	%			770		bps

Franchised Dealerships Segment - SG&A Expenses - Non-GAAP Reconciliation (Continued)
	Twelve Months Ended December 31,								Better / (Worse)
	2021				2020				Change				% Change
	(In millions)
Reported:
Compensation	$	719.6			$	598.3			$	(121.3	)		(20.3	)%
Advertising		26.1				30.1				4.0			13.3	%
Rent		46.6				50.1				3.5			7.0	%
Other		284.6				255.2				(29.4	)		(11.5	)%
Total SG&A expenses	$	1,076.9			$	933.7			$	(143.2	)		(15.3	)%
Items of interest:
Acquisition and disposition-related gain (loss)	$	(1.2	)		$	4.0
Total SG&A adjustments	$	(1.2	)		$	4.0
Adjusted:
Total adjusted SG&A expenses	$	1,075.7			$	937.7			$	(138.0	)		(14.7	)%
Reported:
SG&A expenses as a % of gross profit:
Compensation		40.8	%			45.7	%			490		bps
Advertising		1.5	%			2.3	%			80		bps
Rent		2.6	%			3.8	%			120		bps
Other		16.1	%			19.5	%			340		bps
Total SG&A expenses as a % of gross profit		61.0	%			71.3	%			1,030		bps
Items of interest:
Acquisition and disposition-related gain (loss)		(0.1	)%			0.3	%
Total effect of adjustments		(0.1	)%			0.3	%
Adjusted:
Total adjusted SG&A expenses as a % of gross profit		60.9	%			71.6	%			1,070		bps

EchoPark Segment - SG&A Expenses - Non-GAAP Reconciliation
	Three Months Ended December 31,								Better / (Worse)
	2021				2020				Change				% Change
	(In millions)
Reported:
Compensation	$	36.2			$	16.1			$	(20.1	)		(124.8	)%
Advertising		11.1				4.5				(6.6	)		(146.7	)%
Rent		1.7				1.4				(0.3	)		(21.4	)%
Other		11.5				1.1				(10.4	)		(945.5	)%
Total SG&A expenses	$	60.5			$	23.1			$	(37.4	)		(161.9	)%
Items of interest:
Long-term compensation charges	$	(6.5	)		$	—
Acquisition and disposition-related gain (loss)		—				5.2
Total SG&A adjustments	$	(6.5	)		$	5.2
Adjusted:
Total adjusted SG&A expenses	$	54.0			$	28.3			$	(25.7	)		(90.8	)%
Reported:
SG&A expenses as a % of gross profit:
Compensation		88.5	%			61.7	%			(2,680	)	bps
Advertising		27.1	%			17.2	%			(990	)	bps
Rent		4.2	%			5.4	%			120		bps
Other		28.3	%			3.9	%			(2,440	)	bps
Total SG&A expenses as a % of gross profit		148.1	%			88.2	%			(5,990	)	bps
Items of interest:
Long-term compensation charges		(15.9	)%			—	%
Acquisition and disposition-related gain (loss)		—	%			19.7	%
Total effect of adjustments		(15.9	)%			19.7	%
Adjusted:
Total adjusted SG&A expenses as a % of gross profit		132.2	%			107.9	%			(2,430	)	bps

EchoPark Segment - SG&A Expenses - Non-GAAP Reconciliation (Continued)
	Twelve Months Ended December 31,								Better / (Worse)
	2021				2020				Change				% Change
	(In millions)
Reported:
Compensation	$	114.9			$	61.5			$	(53.4	)		(86.8	)%
Advertising		35.5				12.1				(23.4	)		(193.4	)%
Rent		6.6				4.4				(2.2	)		(50.0	)%
Other		40.8				16.9				(23.9	)		(141.4	)%
Total SG&A expenses	$	197.8			$	94.9			$	(102.9	)		(108.4	)%
Items of interest:
Long-term compensation charges	$	(6.5	)		$	—
Acquisition and disposition-related gain (loss)		—				5.2
Total SG&A adjustments	$	(6.5	)		$	5.2
Adjusted:
Total adjusted SG&A expenses	$	191.3			$	100.1			$	(91.2	)		(91.1	)%
Reported:
SG&A expenses as a % of gross profit:
Compensation		77.2	%			53.9	%			(2,330	)	bps
Advertising		23.9	%			10.6	%			(1,330	)	bps
Rent		4.4	%			3.9	%			(50	)	bps
Other		27.4	%			14.7	%			(1,270	)	bps
Total SG&A expenses as a % of gross profit		132.9	%			83.1	%			(4,980	)	bps
Items of interest:
Long-term compensation charges		(4.3	)%			—	%
Acquisition and disposition-related gain (loss)		—	%			4.5	%
Total effect of adjustments		(4.3	)%			4.5	%
Adjusted:
Total adjusted SG&A expenses as a % of gross profit		128.6	%			87.6	%			(4,100	)	bps

Consolidated - Income (Loss) From Continuing Operations Before Taxes - Non-GAAP Reconciliation
	Three Months Ended December 31,										Twelve Months Ended December 31,
	2021			2020				% Change			2021			2020				% Change
	(In millions)
Reported:
Income (loss) from continuing operations before taxes	$	122.1		$	90.4			35.1	%		$	458.2		$	(34.8	)		NM
Pre-tax items of interest:
Acquisition and disposition-related (gain) loss	$	1.2		$	(6.0	)					$	1.2		$	(9.2	)
Long-term compensation charges		6.5			—							6.5			—
Loss on debt extinguishment		15.6			—							15.6			—
Impairment charges		—			1.2							—			269.2
Total pre-tax items of interest	$	23.3		$	(4.8	)					$	23.3		$	260.0
Adjusted:
Income (loss) from continuing operations before taxes	$	145.4		$	85.6			69.9	%		$	481.5		$	225.2			113.8	%

Franchised Dealerships Segment - Income (Loss) Before Taxes - Non-GAAP Reconciliation
	Three Months Ended December 31,										Twelve Months Ended December 31,
	2021			2020				% Change			2021			2020				% Change
	(In millions)
Reported:
Income (loss) before taxes	$	148.9		$	91.4			63.4	%		$	530.3		$	(38.8	)		NM
Pre-tax items of interest:
Acquisition and disposition-related (gain) loss	$	1.2		$	(0.8	)					$	1.2		$	(4.0	)
Loss on debt extinguishment		15.6			—							15.6			—
Impairment charges		—			1.2							0.0			269.2
Total pre-tax items of interest	$	16.8		$	0.4						$	16.8		$	265.2
Adjusted:
Income (loss) before taxes	$	165.7		$	91.8			80.5	%		$	547.1		$	226.4			141.7	%

EchoPark Segment - Income (Loss) Before Taxes - Non-GAAP Reconciliation
	Three Months Ended December 31,											Twelve Months Ended December 31,
	2021				2020				% Change			2021				2020				% Change
	(In millions)
Reported:
Income (loss) before taxes	$	(26.8	)		$	(1.0	)		NM			$	(72.1	)		$	4.0			NM
Pre-tax items of interest:
Acquisition and disposition-related (gain) loss	$	—			$	(5.2	)					$	—			$	(5.2	)
Long-term compensation charges		6.5				—							6.5				—
Total pre-tax items of interest	$	6.5			$	(5.2	)					$	6.5			$	(5.2	)
Adjusted:
Income (loss) before taxes	$	(20.3	)		$	(6.2	)		227.4	%		$	(65.6	)		$	(1.2	)		NM
NM = Not Meaningful

Consolidated - Earnings (Loss) Per Share from Continuing Operations - Non-GAAP Reconciliation
	Three Months Ended December 31, 2021									Three Months Ended December 31, 2020
	Weighted- Average Shares		Amount				Per Share Amount			Weighted- Average Shares		Amount				Per Share Amount
	(In millions, except per share amounts)
Diluted earnings (loss) and shares from continuing operations	42.8		$	96.3			$	2.25		44.0		$	57.5			$	1.31
Pre-tax items of interest:
Acquisition and disposition-related (gain) loss			$	1.2								$	(6.0	)
Long-term compensation charges				6.5									—
Loss on debt extinguishment				15.6									—
Impairment charges				—									1.2
Total pre-tax items of interest			$	23.3								$	(4.8	)
Tax effect of above items				(5.9	)								1.2
Non-recurring tax items				—									11.9
Adjusted diluted earnings (loss) and shares from continuing operations	42.8		$	113.7			$	2.66		44.0		$	65.8			$	1.50

	Twelve Months Ended December 31, 2021									Twelve Months Ended December 31, 2020
	Weighted- Average Shares		Amount				Per Share Amount			Weighted- Average Shares		Amount				Per Share Amount
	(In millions, except per share amounts)
Diluted earnings (loss) and shares from continuing operations(1)	43.3		$	348.9			$	8.06		42.5		$	(50.7	)		$	(1.19	)
Pre-tax items of interest:
Acquisition and disposition-related (gain) loss			$	1.2								$	(9.2	)
Long-term compensation charges				6.5									—
Loss on debt extinguishment				15.6									—
Impairment charges				—									269.2
Total pre-tax items of interest			$	23.3								$	260.0
Tax effect of above items				(5.9	)								(40.4	)
Adjusted diluted earnings (loss) and shares from continuing operations	43.3		$	366.3			$	8.46		43.9		$	168.9			$	3.85
(1) Basic weighted-average shares used for twelve months ended December 31, 2020 due to net loss on reported GAAP basis.

Adjusted EBITDA - Non-GAAP Reconciliation
	Three Months Ended December 31, 2021													Three Months Ended December 31, 2020
	Franchised Dealerships Segment			EchoPark Segment				Discontinued Operations			Total			Franchised Dealerships Segment				EchoPark Segment				Discontinued Operations			Total
	(In millions)
Net income (loss)											$	96.3													$	57.3
Provision for income taxes												25.8														32.8
Income (loss) before taxes	$	148.9		$	(26.8	)		$	—		$	122.1		$	90.6			$	(0.8	)		$	0.3		$	90.1
Non-floor plan interest (1)		16.2			0.7				—			16.9			9.0				0.2				—			9.2
Depreciation and amortization (2)		23.4			4.9				—			28.3			21.1				2.9				—			24.0
Stock-based compensation expense		3.8			—				—			3.8			3.2				—				—			3.2
Asset impairment charges		—			0.1				—			0.1			1.2				—				—			1.2
Loss (gain) on debt extinguishment		15.6			—				—			15.6			—				—				—			—
Long-term compensation charges		—			6.5				—			6.5			—				—				—			—
Acquisition and disposition-related (gain) loss		0.5			—				—			0.5			(0.8	)			(5.2	)			—			(6.0	)
Adjusted EBITDA	$	208.4		$	(14.6	)		$	—		$	193.8		$	124.3			$	(2.9	)		$	0.3		$	121.7

	Twelve Months Ended December 31, 2021														Twelve Months Ended December 31, 2020
	Franchised Dealerships Segment			EchoPark Segment				Discontinued Operations			Total				Franchised Dealerships Segment				EchoPark Segment				Discontinued Operations				Total
	(In millions)
Net income (loss)											$	348.9															$	(51.4	)
Provision for income taxes												109.3																15.6
Income (loss) before taxes	$	530.3		$	(72.1	)		$	—		$	458.2			$	(39.4	)		$	4.1			$	(0.5	)		$	(35.8	)
Non-floor plan interest (1)		43.0			1.7				—			44.7				37.8				0.9				—				38.7
Depreciation and amortization (2)		87.9			16.4				—			104.3				82.7				11.2				—				93.9
Stock-based compensation expense		15.0			—				—			15.0				11.7				—				—				11.7
Asset impairment charges		—			0.1				—			0.1				270.0				—				—				270.0
Loss (gain) on debt extinguishment		15.6			—				—			15.6				—				—				—				—
Long-term compensation charges		—			8.0				—			8.0				—				—				—				—
Acquisition and disposition-related (gain) loss		—			(0.4	)			—			(0.4	)			(3.0	)			(5.2	)			—				(8.2	)
Adjusted EBITDA	$	691.8		$	(46.3	)		$	—		$	645.5			$	359.8			$	11.0			$	(0.5	)		$	370.3

(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/20220216005395/en/

Investor Inquiries:

Heath Byrd, Executive Vice President and Chief Financial Officer (704) 566-2400

Danny Wieland, Vice President, Investor Relations & Financial Reporting (704) 927-3462

ir@sonicautomotive.com

Press Inquiries:

Danielle DeVoren / Joshua Greenwald

212-896-1272 / 646-379-7971

ddevoren@kcsa.com/jgreenwald@kcsa.com

Source: Sonic Automotive, Inc.

FAQ

What were Sonic Automotive's fourth quarter revenues for 2021?

Sonic Automotive reported record fourth quarter revenues of $3.2 billion for 2021.

How much will the RFJ Auto acquisition contribute to Sonic Automotive's revenues?

The RFJ Auto acquisition is expected to add $3.2 billion to Sonic Automotive's revenues in 2022.

What is the new quarterly cash dividend for Sonic Automotive?

Sonic Automotive has raised its quarterly cash dividend by 108% to $0.25 per share.

What was Sonic Automotive's net income for Q4 2021?

Sonic Automotive reported a net income of $96.3 million ($2.25 per diluted share) for the fourth quarter of 2021.

What were the challenges faced by Sonic Automotive in 2021?

Sonic Automotive faced unprecedented supply chain issues and record low new vehicle inventory in 2021.