Sonic Automotive Reports All-Time Record Quarterly Revenues
- All-time record quarterly revenues of $3.7 billion, up 4% year-over-year
- Strong balance sheet with $864 million of liquidity as of June 30, 2023
- Quarterly gross profit of $568.9 million, down 3% year-over-year
- Expected return to breakeven EchoPark Segment adjusted EBITDA* in the first quarter of 2024
- Reported second quarter net income of $23.4 million, down 75% year-over-year
- EchoPark Segment revenues down 9% year-over-year
- Adjusted second quarter net income* was $66.0 million, down 33% year-over-year
Previously Announced Strategic Adjustments to EchoPark Business Expected to Enhance Near-Term Performance While Maintaining Long-Term Strategic Plan
Second Quarter 2023 Financial Summary
-
All-time record quarterly revenues of
$3.7 billion 4% year-over-year; quarterly gross profit of$568.9 million 3% year-over-year -
Reported second quarter net income of
$23.4 million 75% year-over-year ($0.65 72% year-over-year)-
Adjusted second quarter net income* was
$66.0 million 33% year-over-year ($1.83 25% year-over-year)
-
Adjusted second quarter net income* was
-
Reported selling, general and administrative (“SG&A”) expenses as a percentage of gross profit of
68.9% (59.7% on a Franchised Dealerships Segment basis)-
Adjusted SG&A expenses as a percentage of gross profit* of
70.5% (63.3% on a Franchised Dealerships Segment basis)
-
Adjusted SG&A expenses as a percentage of gross profit* of
-
EchoPark Segment revenues of
$600.6 million 9% year-over-year; EchoPark Segment gross profit of$26.8 million 44% year-over-year; EchoPark Segment retail used vehicle unit sales volume of 17,084, up4% year-over-year
EchoPark Update
-
Completed previously announced plan to indefinitely suspend operations at eight EchoPark retail hub locations and 14 related EchoPark delivery/buy centers, plus three Northwest Motorsport locations within the EchoPark Segment (collectively, the "closed EchoPark stores"), representing a total of
$13.2 million -
Recorded a second quarter 2023 charge related to the closed EchoPark stores of approximately
$75.2 million $62.6 million $2.2 million $0.4 million $10.0 million $7.7 million -
Expect ongoing expenses associated with the closed EchoPark stores of approximately
$2.5 million $3.0 million - Reiterate previously issued guidance of an expected return to breakeven EchoPark Segment adjusted EBITDA* in the first quarter of 2024
* Represents a non-GAAP financial measure - please refer to the discussion and reconciliation of non-GAAP financial measures below.
Management Commentary
David Smith, Chairman and Chief Executive Officer of Sonic Automotive, stated, “Our team remains focused on executing our strategic plan and adapting our business to an evolving industry backdrop. I am extremely proud of our team's continued efforts to maximize profitability in the near-term, while positioning Sonic for long-term success. We believe the strategic investments in our business and our teammates will allow us to continue to deliver an exceptional guest experience while generating returns for our stockholders in the long run.”
Jeff Dyke, President of Sonic Automotive, commented, “Our team's combined decades of experience in the automotive retail industry has taught us that making tough business decisions in the short-term can pay dividends over time. We remain confident in the long-term potential for EchoPark and believe that the steps we have taken to improve near-term financial performance will position us to achieve our strategic goals. In the meantime, our franchised dealerships and powersports teams continue to perform at a high level, maintaining our focus on profitability enhancements and cash flow generation as market conditions begin to normalize.”
Heath Byrd, Chief Financial Officer of Sonic Automotive, added, “Our strong balance sheet and cash flows provide us with the flexibility to continue to enhance our diversified business model and adapt to changes in the macroeconomic and industry backdrop. As of June 30, 2023, we had
Second Quarter 2023 Segment Highlights
The financial measures discussed below are results for the second quarter of 2023 with comparisons made to the second quarter of 2022, unless otherwise noted.
-
Franchised Dealerships Segment operating results include:
-
Same store revenues up
6% ; same store gross profit down2% -
Same store retail new vehicle unit sales volume up
12% ; same store retail new vehicle gross profit per unit down25% , to$4,986 -
Same store retail used vehicle unit sales volume down
10% ; same store retail used vehicle gross profit per unit down3% , to$1,618 -
Same store parts, service and collision repair (“Fixed Operations”) gross profit up
9% ; same store customer pay gross profit up11% ; same store warranty gross profit up6% ; same store Fixed Operations gross margin down 10 basis points, to49.6% -
Same store finance and insurance ("F&I") gross profit up
4% ; same store F&I gross profit per retail unit of$2,522 4% (all-time record quarterly Franchised Dealerships Segment F&I per unit of$2,516 2% ) - On a trailing quarter cost of sales basis, the Franchised Dealerships Segment had 30 days’ supply of new vehicle inventory (including in-transit) and 31 days’ supply of used vehicle inventory
-
Same store revenues up
-
EchoPark Segment operating results include:
-
Revenues of
$600.6 million 9% ; gross profit of$26.8 million 44% (reported gross profit includes a$10.0 million -
Revenues from the closed EchoPark stores were
$74.4 million 30% ; gross profit from the closed EchoPark stores was$3.1 37%
-
Revenues from the closed EchoPark stores were
-
Retail used vehicle unit sales volume of 17,084, up
4% -
Retail used vehicle unit sales volume from the closed EchoPark stores was 2,324 units (
14% of EchoPark Segment retail used vehicle unit sales volume)
-
Retail used vehicle unit sales volume from the closed EchoPark stores was 2,324 units (
-
Reported segment loss of
$52.8 million $40.0 million $31.8 million -
Reported segment loss from the closed EchoPark stores was
$13.2 million
-
Reported segment loss from the closed EchoPark stores was
-
Retail used vehicle unit sales volume was comprised of
82% 1-4-year-old vehicles and18% 5-plus-year-old vehicles, with23% of retail used vehicle unit sales volume sourced from non-auction sources - On a trailing quarter cost of sales basis, the EchoPark Segment had 39 days’ supply of used vehicle inventory
-
Revenues of
-
Powersports Segment operating results include:
-
Revenues of
$45.0 million $12.8 million 28.5% -
Segment income of
$2.0 million $3.4 million -
Year-over-year comparative financial results are not meaningful due to the timing of acquisitions of Horny Toad Harley-Davidson in
Temple, Texas (one store acquired in January 2022), Team Mancuso Powersports inHouston, Texas (seven stores acquired in August 2022), and Black Hills Harley-Davidson inSturgis, South Dakota (five stores acquired in February 2023)
-
Revenues of
* Represents a non-GAAP financial measure - please refer to the discussion and reconciliation of non-GAAP financial measures below.
Acquisition and Disposition Activity
During the second quarter of 2023, Sonic disposed of three franchised dealerships in
Dividend
Sonic’s Board of Directors approved a quarterly cash dividend of
Second Quarter 2023 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 and select the webcast link at the top of the page. For telephone access to this conference call, please dial (866) 682-6100 (domestic) or +1 (862) 298-0702 (international) and ask to be connected to the Sonic Automotive Second Quarter 2023 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
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
Forward-Looking Statements
Included herein are forward-looking statements, including statements regarding anticipated future EchoPark profitability, anticipated future EchoPark adjusted EBITDA, and anticipated future expenses related to closed locations. 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, 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, 2022 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 net income, adjusted earnings per diluted share, adjusted SG&A expenses as a percentage of gross profit, adjusted segment 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) |
|||||||||||||||||||||
Results of Operations - Consolidated |
|||||||||||||||||||||
|
Three Months Ended June 30, |
|
Better / (Worse) |
|
Six Months Ended June 30, |
|
Better / (Worse) |
||||||||||||||
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||||||
|
(In millions, except per share amounts) |
|
|
||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
$ |
1,608.2 |
|
|
$ |
1,344.3 |
|
|
20 |
% |
|
$ |
3,051.0 |
|
|
$ |
2,695.6 |
|
|
13 |
% |
Fleet new vehicles |
|
28.3 |
|
|
|
19.8 |
|
|
43 |
% |
|
|
47.1 |
|
|
|
38.0 |
|
|
24 |
% |
Total new vehicles |
|
1,636.5 |
|
|
|
1,364.1 |
|
|
20 |
% |
|
|
3,098.1 |
|
|
|
2,733.6 |
|
|
13 |
% |
Used vehicles |
|
1,305.9 |
|
|
|
1,448.3 |
|
|
(10 |
)% |
|
|
2,650.8 |
|
|
|
2,818.4 |
|
|
(6 |
)% |
Wholesale vehicles |
|
91.5 |
|
|
|
121.4 |
|
|
(25 |
)% |
|
|
177.0 |
|
|
|
290.2 |
|
|
(39 |
)% |
Total vehicles |
|
3,033.9 |
|
|
|
2,933.8 |
|
|
3 |
% |
|
|
5,925.9 |
|
|
|
5,842.2 |
|
|
1 |
% |
Parts, service and collision repair |
|
443.7 |
|
|
|
399.2 |
|
|
11 |
% |
|
|
874.2 |
|
|
|
780.5 |
|
|
12 |
% |
Finance, insurance and other, net |
|
175.3 |
|
|
|
173.2 |
|
|
1 |
% |
|
|
344.0 |
|
|
|
339.7 |
|
|
1 |
% |
Total revenues |
|
3,652.9 |
|
|
|
3,506.2 |
|
|
4 |
% |
|
|
7,144.1 |
|
|
|
6,962.4 |
|
|
3 |
% |
Cost of sales: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
(1,466.8 |
) |
|
|
(1,176.0 |
) |
|
(25 |
)% |
|
|
(2,771.5 |
) |
|
|
(2,359.6 |
) |
|
(17 |
)% |
Fleet new vehicles |
|
(27.0 |
) |
|
|
(18.9 |
) |
|
(43 |
)% |
|
|
(45.0 |
) |
|
|
(36.2 |
) |
|
(24 |
)% |
Total new vehicles |
|
(1,493.8 |
) |
|
|
(1,194.9 |
) |
|
(25 |
)% |
|
|
(2,816.5 |
) |
|
|
(2,395.8 |
) |
|
(18 |
)% |
Used vehicles |
|
(1,274.4 |
) |
|
|
(1,401.7 |
) |
|
9 |
% |
|
|
(2,589.3 |
) |
|
|
(2,724.0 |
) |
|
5 |
% |
Wholesale vehicles |
|
(92.5 |
) |
|
|
(120.2 |
) |
|
23 |
% |
|
|
(174.9 |
) |
|
|
(287.6 |
) |
|
39 |
% |
Total vehicles |
|
(2,860.7 |
) |
|
|
(2,716.8 |
) |
|
(5 |
)% |
|
|
(5,580.7 |
) |
|
|
(5,407.4 |
) |
|
(3 |
)% |
Parts, service and collision repair |
|
(223.3 |
) |
|
|
(200.6 |
) |
|
(11 |
)% |
|
|
(440.9 |
) |
|
|
(394.9 |
) |
|
(12 |
)% |
Total cost of sales |
|
(3,084.0 |
) |
|
|
(2,917.4 |
) |
|
(6 |
)% |
|
|
(6,021.6 |
) |
|
|
(5,802.3 |
) |
|
(4 |
)% |
Gross profit |
|
568.9 |
|
|
|
588.8 |
|
|
(3 |
)% |
|
|
1,122.5 |
|
|
|
1,160.1 |
|
|
(3 |
)% |
Selling, general and administrative expenses |
|
(391.9 |
) |
|
|
(402.8 |
) |
|
3 |
% |
|
|
(804.7 |
) |
|
|
(789.8 |
) |
|
(2 |
)% |
Impairment charges |
|
(62.6 |
) |
|
|
— |
|
|
(100 |
)% |
|
|
(62.6 |
) |
|
|
— |
|
|
(100 |
)% |
Depreciation and amortization |
|
(36.1 |
) |
|
|
(31.2 |
) |
|
(16 |
)% |
|
|
(70.5 |
) |
|
|
(61.1 |
) |
|
(15 |
)% |
Operating income (loss) |
|
78.3 |
|
|
|
154.8 |
|
|
(49 |
)% |
|
|
184.7 |
|
|
|
309.2 |
|
|
(40 |
)% |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, floor plan |
|
(17.0 |
) |
|
|
(6.1 |
) |
|
(179 |
)% |
|
|
(31.5 |
) |
|
|
(11.1 |
) |
|
(184 |
)% |
Interest expense, other, net |
|
(28.9 |
) |
|
|
(21.3 |
) |
|
(36 |
)% |
|
|
(57.3 |
) |
|
|
(42.1 |
) |
|
(36 |
)% |
Other income (expense), net |
|
0.1 |
|
|
|
(0.2 |
) |
|
150 |
% |
|
|
0.2 |
|
|
|
0.1 |
|
|
100 |
% |
Total other income (expense) |
|
(45.8 |
) |
|
|
(27.6 |
) |
|
(66 |
)% |
|
|
(88.6 |
) |
|
|
(53.1 |
) |
|
(67 |
)% |
Income (loss) before taxes |
|
32.5 |
|
|
|
127.2 |
|
|
(74 |
)% |
|
|
96.1 |
|
|
|
256.1 |
|
|
(62 |
)% |
Provision for income taxes - benefit (expense) |
|
(9.1 |
) |
|
|
(32.4 |
) |
|
72 |
% |
|
|
(25.0 |
) |
|
|
(64.0 |
) |
|
61 |
% |
Net income (loss) |
$ |
23.4 |
|
|
$ |
94.8 |
|
|
(75 |
)% |
|
$ |
71.1 |
|
|
$ |
192.1 |
|
|
(63 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings (loss) per common share |
$ |
0.66 |
|
|
$ |
2.40 |
|
|
(73 |
)% |
|
$ |
2.00 |
|
|
$ |
4.81 |
|
|
(58 |
)% |
Basic weighted-average common shares outstanding |
|
35.3 |
|
|
|
39.5 |
|
|
11 |
% |
|
|
35.6 |
|
|
|
40.0 |
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings (loss) per common share |
$ |
0.65 |
|
|
$ |
2.34 |
|
|
(72 |
)% |
|
$ |
1.95 |
|
|
$ |
4.67 |
|
|
(58 |
)% |
Diluted weighted-average common shares outstanding |
|
36.0 |
|
|
|
40.5 |
|
|
11 |
% |
|
|
36.5 |
|
|
|
41.2 |
|
|
12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends declared per common share |
$ |
0.29 |
|
|
$ |
0.25 |
|
|
16 |
% |
|
$ |
0.57 |
|
|
$ |
0.37 |
|
|
54 |
% |
Franchised Dealerships Segment - Reported |
|||||||||||||||||||||
|
Three Months Ended June 30, |
|
Better / (Worse) |
|
Six Months Ended June 30, |
|
Better / (Worse) |
||||||||||||||
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||||||
|
(In millions, except unit and per unit data) |
||||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
$ |
1,583.3 |
|
|
$ |
1,341.7 |
|
|
18 |
% |
|
$ |
3,004.3 |
|
|
$ |
2,687.4 |
|
|
12 |
% |
Fleet new vehicles |
|
28.3 |
|
|
|
19.9 |
|
|
42 |
% |
|
|
47.1 |
|
|
|
38.0 |
|
|
24 |
% |
Total new vehicles |
|
1,611.6 |
|
|
|
1,361.6 |
|
|
18 |
% |
|
|
3,051.4 |
|
|
|
2,725.4 |
|
|
12 |
% |
Used vehicles |
|
774.5 |
|
|
|
871.9 |
|
|
(11 |
)% |
|
|
1,542.0 |
|
|
|
1,725.7 |
|
|
(11 |
)% |
Wholesale vehicles |
|
55.6 |
|
|
|
79.2 |
|
|
(30 |
)% |
|
|
114.0 |
|
|
|
185.5 |
|
|
(39 |
)% |
Total vehicles |
|
2,441.7 |
|
|
|
2,312.7 |
|
|
6 |
% |
|
|
4,707.4 |
|
|
|
4,636.6 |
|
|
2 |
% |
Parts, service and collision repair |
|
433.4 |
|
|
|
398.1 |
|
|
9 |
% |
|
|
857.2 |
|
|
|
778.7 |
|
|
10 |
% |
Finance, insurance and other, net |
|
132.2 |
|
|
|
129.8 |
|
|
2 |
% |
|
|
249.4 |
|
|
|
256.2 |
|
|
(3 |
)% |
Total revenues |
|
3,007.3 |
|
|
|
2,840.6 |
|
|
6 |
% |
|
|
5,814.0 |
|
|
|
5,671.5 |
|
|
3 |
% |
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
136.9 |
|
|
|
167.3 |
|
|
(18 |
)% |
|
|
270.9 |
|
|
|
333.8 |
|
|
(19 |
)% |
Fleet new vehicles |
|
1.3 |
|
|
|
0.9 |
|
|
44 |
% |
|
|
2.1 |
|
|
|
1.8 |
|
|
17 |
% |
Total new vehicles |
|
138.2 |
|
|
|
168.2 |
|
|
(18 |
)% |
|
|
273.0 |
|
|
|
335.6 |
|
|
(19 |
)% |
Used vehicles |
|
44.5 |
|
|
|
43.7 |
|
|
2 |
% |
|
|
85.3 |
|
|
|
90.6 |
|
|
(6 |
)% |
Wholesale vehicles |
|
(1.0 |
) |
|
|
(0.5 |
) |
|
(100 |
)% |
|
|
1.0 |
|
|
|
(0.9 |
) |
|
211 |
% |
Total vehicles |
|
181.7 |
|
|
|
211.4 |
|
|
(14 |
)% |
|
|
359.3 |
|
|
|
425.3 |
|
|
(16 |
)% |
Parts, service and collision repair |
|
215.4 |
|
|
|
198.1 |
|
|
9 |
% |
|
|
425.0 |
|
|
|
384.8 |
|
|
10 |
% |
Finance, insurance and other, net |
|
132.2 |
|
|
|
129.8 |
|
|
2 |
% |
|
|
249.4 |
|
|
|
256.2 |
|
|
(3 |
)% |
Total gross profit |
|
529.3 |
|
|
|
539.3 |
|
|
(2 |
)% |
|
|
1,033.7 |
|
|
|
1,066.3 |
|
|
(3 |
)% |
Selling, general and administrative expenses |
|
(316.1 |
) |
|
|
(327.5 |
) |
|
3 |
% |
|
|
(647.3 |
) |
|
|
(642.9 |
) |
|
(1 |
)% |
Impairment charges |
|
— |
|
|
|
— |
|
|
— |
% |
|
|
— |
|
|
|
— |
|
|
— |
% |
Depreciation and amortization |
|
(27.9 |
) |
|
|
(25.3 |
) |
|
(10 |
)% |
|
|
(54.5 |
) |
|
|
(50.0 |
) |
|
(9 |
)% |
Operating income (loss) |
|
185.3 |
|
|
|
186.5 |
|
|
(1 |
)% |
|
|
331.9 |
|
|
|
373.4 |
|
|
(11 |
)% |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, floor plan |
|
(11.9 |
) |
|
|
(3.9 |
) |
|
(205 |
)% |
|
|
(21.8 |
) |
|
|
(7.2 |
) |
|
(203 |
)% |
Interest expense, other, net |
|
(27.5 |
) |
|
|
(20.2 |
) |
|
(36 |
)% |
|
|
(54.4 |
) |
|
|
(40.3 |
) |
|
(35 |
)% |
Other income (expense), net |
|
— |
|
|
|
(0.3 |
) |
|
100 |
% |
|
|
0.1 |
|
|
|
0.1 |
|
|
— |
% |
Total other income (expense) |
|
(39.4 |
) |
|
|
(24.4 |
) |
|
(61 |
)% |
|
|
(76.1 |
) |
|
|
(47.4 |
) |
|
(61 |
)% |
Income (loss) before taxes |
|
145.9 |
|
|
|
162.1 |
|
|
(10 |
)% |
|
|
255.8 |
|
|
|
326.0 |
|
|
(22 |
)% |
Add: Impairment charges |
|
— |
|
|
|
— |
|
|
— |
% |
|
|
— |
|
|
|
— |
|
|
— |
% |
Segment income (loss) |
$ |
145.9 |
|
|
$ |
162.1 |
|
|
(10 |
)% |
|
$ |
255.8 |
|
|
$ |
326.0 |
|
|
(22 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Unit Sales Volume: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
27,358 |
|
|
|
24,342 |
|
|
12 |
% |
|
|
51,897 |
|
|
|
48,944 |
|
|
6 |
% |
Fleet new vehicles |
|
590 |
|
|
|
422 |
|
|
40 |
% |
|
|
1,031 |
|
|
|
782 |
|
|
32 |
% |
Total new vehicles |
|
27,948 |
|
|
|
24,764 |
|
|
13 |
% |
|
|
52,928 |
|
|
|
49,726 |
|
|
6 |
% |
Used vehicles |
|
25,197 |
|
|
|
28,156 |
|
|
(11 |
)% |
|
|
50,304 |
|
|
|
55,234 |
|
|
(9 |
)% |
Wholesale vehicles |
|
5,516 |
|
|
|
5,851 |
|
|
(6 |
)% |
|
|
10,999 |
|
|
|
12,623 |
|
|
(13 |
)% |
Retail new & used vehicles |
|
52,555 |
|
|
|
52,498 |
|
|
— |
% |
|
|
102,201 |
|
|
|
104,178 |
|
|
(2 |
)% |
Used-to-New Ratio |
|
0.92 |
|
|
|
1.16 |
|
|
(21 |
)% |
|
|
0.97 |
|
|
|
1.13 |
|
|
(14 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross Profit Per Unit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
$ |
5,003 |
|
|
$ |
6,871 |
|
|
(27 |
)% |
|
$ |
5,221 |
|
|
$ |
6,821 |
|
|
(23 |
)% |
Fleet new vehicles |
$ |
2,099 |
|
|
$ |
2,235 |
|
|
(6 |
)% |
|
$ |
2,065 |
|
|
$ |
2,285 |
|
|
(10 |
)% |
New vehicles |
$ |
4,942 |
|
|
$ |
6,792 |
|
|
(27 |
)% |
|
$ |
5,159 |
|
|
$ |
6,749 |
|
|
(24 |
)% |
Used vehicles |
$ |
1,765 |
|
|
$ |
1,553 |
|
|
14 |
% |
|
$ |
1,695 |
|
|
$ |
1,640 |
|
|
3 |
% |
Finance, insurance and other, net |
$ |
2,516 |
|
|
$ |
2,472 |
|
|
2 |
% |
|
$ |
2,440 |
|
|
$ |
2,460 |
|
|
(1 |
)% |
NM = Not Meaningful |
|||||||||||||||||||||
Franchised Dealerships Segment - Same Store |
|||||||||||||||||||||
|
Three Months Ended June 30, |
|
Better / (Worse) |
|
Six Months Ended June 30, |
|
Better / (Worse) |
||||||||||||||
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||||||
|
(In millions, except unit and per unit data) |
||||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
$ |
1,558.2 |
|
|
$ |
1,323.9 |
|
|
18 |
% |
|
$ |
2,953.7 |
|
$ |
2,653.8 |
|
|
11 |
% |
|
Fleet new vehicles |
|
28.4 |
|
|
|
19.9 |
|
|
43 |
% |
|
|
47.2 |
|
|
38.0 |
|
|
24 |
% |
|
Total new vehicles |
|
1,586.6 |
|
|
|
1,343.8 |
|
|
18 |
% |
|
|
3,000.9 |
|
|
2,691.8 |
|
|
11 |
% |
|
Used vehicles |
|
761.9 |
|
|
|
857.2 |
|
|
(11 |
)% |
|
|
1,513.4 |
|
|
1,695.2 |
|
|
(11 |
)% |
|
Wholesale vehicles |
|
54.5 |
|
|
|
78.3 |
|
|
(30 |
)% |
|
|
112.0 |
|
|
183.0 |
|
|
(39 |
)% |
|
Total vehicles |
|
2,403.0 |
|
|
|
2,279.3 |
|
|
5 |
% |
|
|
4,626.3 |
|
|
4,570.0 |
|
|
1 |
% |
|
Parts, service and collision repair |
|
427.3 |
|
|
|
392.5 |
|
|
9 |
% |
|
|
843.5 |
|
|
767.9 |
|
|
10 |
% |
|
Finance, insurance and other, net |
|
130.1 |
|
|
|
124.8 |
|
|
4 |
% |
|
|
245.4 |
|
|
246.2 |
|
|
— |
% |
|
Total revenues |
|
2,960.4 |
|
|
|
2,796.6 |
|
|
6 |
% |
|
|
5,715.2 |
|
|
5,584.1 |
|
|
2 |
% |
|
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
133.8 |
|
|
|
160.0 |
|
|
(16 |
)% |
|
|
265.1 |
|
|
319.1 |
|
|
(17 |
)% |
|
Fleet new vehicles |
|
1.2 |
|
|
|
0.9 |
|
|
33 |
% |
|
|
2.1 |
|
|
1.8 |
|
|
17 |
% |
|
Total new vehicles |
|
135.1 |
|
|
|
161.0 |
|
|
(16 |
)% |
|
|
267.2 |
|
|
320.9 |
|
|
(17 |
)% |
|
Used vehicles |
|
40.0 |
|
|
|
45.9 |
|
|
(13 |
)% |
|
|
78.5 |
|
|
93.0 |
|
|
(16 |
)% |
|
Wholesale vehicles |
|
(0.3 |
) |
|
|
(0.6 |
) |
|
50 |
% |
|
|
1.4 |
|
|
(0.9 |
) |
|
256 |
% |
|
Total vehicles |
|
174.8 |
|
|
|
206.3 |
|
|
(15 |
)% |
|
|
347.1 |
|
|
413.0 |
|
|
(16 |
)% |
|
Parts, service and collision repair |
|
212.0 |
|
|
|
195.2 |
|
|
9 |
% |
|
|
417.5 |
|
|
379.1 |
|
|
10 |
% |
|
Finance, insurance and other, net |
|
130.1 |
|
|
|
124.8 |
|
|
4 |
% |
|
|
245.4 |
|
|
246.2 |
|
|
— |
% |
|
Total gross profit |
$ |
516.9 |
|
|
$ |
526.3 |
|
|
(2 |
)% |
|
$ |
1,010.0 |
|
$ |
1,038.3 |
|
|
(3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Unit Sales Volume: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
26,844 |
|
|
|
23,936 |
|
|
12 |
% |
|
|
50,840 |
|
|
48,170 |
|
|
6 |
% |
|
Fleet new vehicles |
|
590 |
|
|
|
422 |
|
|
40 |
% |
|
|
1,031 |
|
|
782 |
|
|
32 |
% |
|
Total new vehicles |
|
27,434 |
|
|
|
24,358 |
|
|
13 |
% |
|
|
51,871 |
|
|
48,952 |
|
|
6 |
% |
|
Used vehicles |
|
24,737 |
|
|
|
27,596 |
|
|
(10 |
)% |
|
|
49,260 |
|
|
54,099 |
|
|
(9 |
)% |
|
Wholesale vehicles |
|
5,418 |
|
|
|
5,764 |
|
|
(6 |
)% |
|
|
10,790 |
|
|
12,426 |
|
|
(13 |
)% |
|
Retail new & used vehicles |
|
51,581 |
|
|
|
51,532 |
|
|
— |
% |
|
|
100,100 |
|
|
102,269 |
|
|
(2 |
)% |
|
Used-to-New Ratio |
|
0.92 |
|
|
|
1.15 |
|
|
(20 |
)% |
|
|
0.97 |
|
|
1.12 |
|
|
(13 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross Profit Per Unit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
$ |
4,986 |
|
|
$ |
6,686 |
|
|
(25 |
)% |
|
$ |
5,215 |
|
$ |
6,624 |
|
|
(21 |
)% |
|
Fleet new vehicles |
$ |
2,099 |
|
|
$ |
2,235 |
|
|
(6 |
)% |
|
$ |
2,065 |
|
$ |
2,285 |
|
|
(10 |
)% |
|
New vehicles |
$ |
4,924 |
|
|
$ |
6,609 |
|
|
(25 |
)% |
|
$ |
5,152 |
|
$ |
6,555 |
|
|
(21 |
)% |
|
Used vehicles |
$ |
1,618 |
|
|
$ |
1,663 |
|
|
(3 |
)% |
|
$ |
1,593 |
|
$ |
1,718 |
|
|
(7 |
)% |
|
Finance, insurance and other, net |
$ |
2,522 |
|
|
$ |
2,422 |
|
|
4 |
% |
|
$ |
2,452 |
|
$ |
2,407 |
|
|
2 |
% |
|
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 June 30, |
|
Better / (Worse) |
|
Six Months Ended June 30, |
|
Better / (Worse) |
||||||||||||||
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||||||
|
(In millions, except unit and per unit data) |
||||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
$ |
— |
|
|
$ |
1.3 |
|
|
(100 |
)% |
|
$ |
1.0 |
|
|
$ |
5.7 |
|
|
(82 |
)% |
Used vehicles |
|
524.0 |
|
|
|
574.5 |
|
|
(9 |
)% |
|
|
1,096.5 |
|
|
|
1,089.8 |
|
|
1 |
% |
Wholesale vehicles |
|
35.5 |
|
|
|
42.0 |
|
|
(15 |
)% |
|
|
62.5 |
|
|
|
104.5 |
|
|
(40 |
)% |
Total vehicles |
|
559.5 |
|
|
|
617.8 |
|
|
(9 |
)% |
|
|
1,160.0 |
|
|
|
1,200.0 |
|
|
(3 |
)% |
Finance, insurance and other, net |
|
41.1 |
|
|
|
43.1 |
|
|
(5 |
)% |
|
|
91.1 |
|
|
|
83.0 |
|
|
10 |
% |
Total revenues |
|
600.6 |
|
|
|
660.9 |
|
|
(9 |
)% |
|
|
1,251.1 |
|
|
|
1,283.0 |
|
|
(2 |
)% |
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
— |
|
|
|
0.6 |
|
|
(100 |
)% |
|
|
0.1 |
|
|
|
1.6 |
|
|
(94 |
)% |
Used vehicles |
|
(14.3 |
) |
|
|
2.4 |
|
|
(696 |
)% |
|
|
(26.2 |
) |
|
|
3.1 |
|
|
(945 |
)% |
Wholesale vehicles |
|
— |
|
|
|
1.7 |
|
|
(100 |
)% |
|
|
1.2 |
|
|
|
3.4 |
|
|
(65 |
)% |
Total vehicles |
|
(14.3 |
) |
|
|
4.7 |
|
|
(404 |
)% |
|
|
(24.9 |
) |
|
|
8.1 |
|
|
(407 |
)% |
Finance, insurance and other, net |
|
41.1 |
|
|
|
43.1 |
|
|
(5 |
)% |
|
|
91.1 |
|
|
|
83.0 |
|
|
10 |
% |
Total gross profit |
|
26.8 |
|
|
|
47.8 |
|
|
(44 |
)% |
|
|
66.2 |
|
|
|
91.1 |
|
|
(27 |
)% |
Selling, general and administrative expenses |
|
(66.6 |
) |
|
|
(73.0 |
) |
|
9 |
% |
|
|
(140.4 |
) |
|
|
(144.1 |
) |
|
3 |
% |
Impairment charges |
|
(62.6 |
) |
|
|
— |
|
|
(100 |
)% |
|
|
(62.6 |
) |
|
|
— |
|
|
(100 |
)% |
Depreciation and amortization |
|
(7.4 |
) |
|
|
(5.8 |
) |
|
(28 |
)% |
|
|
(14.4 |
) |
|
|
(10.9 |
) |
|
(32 |
)% |
Operating income (loss) |
|
(109.8 |
) |
|
|
(31.0 |
) |
|
(254 |
)% |
|
|
(151.2 |
) |
|
|
(63.9 |
) |
|
(137 |
)% |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, floor plan |
|
(4.8 |
) |
|
|
(2.2 |
) |
|
(118 |
)% |
|
|
(9.3 |
) |
|
|
(3.9 |
) |
|
(138 |
)% |
Interest expense, other, net |
|
(0.9 |
) |
|
|
(1.1 |
) |
|
18 |
% |
|
|
(1.8 |
) |
|
|
(1.8 |
) |
|
— |
% |
Other income (expense), net |
|
0.1 |
|
|
|
0.1 |
|
|
— |
% |
|
|
— |
|
|
|
— |
|
|
— |
% |
Total other income (expense) |
|
(5.6 |
) |
|
|
(3.2 |
) |
|
(75 |
)% |
|
|
(11.1 |
) |
|
|
(5.7 |
) |
|
(95 |
)% |
Income (loss) before taxes |
|
(115.4 |
) |
|
|
(34.2 |
) |
|
(237 |
)% |
|
|
(162.3 |
) |
|
|
(69.6 |
) |
|
(133 |
)% |
Add: Impairment charges |
|
62.6 |
|
|
|
— |
|
|
100 |
% |
|
|
62.6 |
|
|
|
— |
|
|
100 |
% |
Segment income (loss) |
$ |
(52.8 |
) |
|
$ |
(34.2 |
) |
|
(54 |
)% |
|
$ |
(99.7 |
) |
|
$ |
(69.6 |
) |
|
(43 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Unit Sales Volume: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
— |
|
|
|
37 |
|
|
(100 |
)% |
|
|
11 |
|
|
|
81 |
|
|
(86 |
)% |
Used vehicles |
|
17,084 |
|
|
|
16,496 |
|
|
4 |
% |
|
|
37,064 |
|
|
|
31,427 |
|
|
18 |
% |
Wholesale vehicles |
|
3,235 |
|
|
|
2,694 |
|
|
20 |
% |
|
|
6,151 |
|
|
|
6,343 |
|
|
(3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross Profit Per Unit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total used vehicle and F&I |
$ |
1,569 |
|
|
$ |
2,751 |
|
|
(43 |
)% |
|
$ |
1,750 |
|
|
$ |
2,730 |
|
|
(36 |
)% |
NM = Not Meaningful |
|||||||||||||||||||||
EchoPark Segment - Same Market |
|||||||||||||||||||||
|
Three Months Ended June 30, |
|
Better / (Worse) |
|
Six Months Ended June 30, |
|
Better / (Worse) |
||||||||||||||
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||||||
|
(In millions, except unit and per unit data) |
||||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Used vehicles |
$ |
422.3 |
|
|
$ |
338.7 |
|
|
25 |
% |
|
$ |
875.9 |
|
|
$ |
621.2 |
|
|
41 |
% |
Wholesale vehicles |
|
23.7 |
|
|
|
26.8 |
|
|
(12 |
)% |
|
|
43.9 |
|
|
|
72.2 |
|
|
(39 |
)% |
Total vehicles |
|
446.0 |
|
|
|
365.5 |
|
|
22 |
% |
|
|
919.8 |
|
|
|
693.4 |
|
|
33 |
% |
Finance, insurance and other, net |
|
33.0 |
|
|
|
25.2 |
|
|
31 |
% |
|
|
73.4 |
|
|
|
47.5 |
|
|
55 |
% |
Total revenues |
|
479.0 |
|
|
|
390.7 |
|
|
23 |
% |
|
|
993.2 |
|
|
|
740.9 |
|
|
34 |
% |
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Used vehicles |
|
(2.2 |
) |
|
|
(2.1 |
) |
|
(5 |
)% |
|
|
(10.6 |
) |
|
|
(5.4 |
) |
|
(96 |
)% |
Wholesale vehicles |
|
0.1 |
|
|
|
1.3 |
|
|
(92 |
)% |
|
|
1.1 |
|
|
|
3.0 |
|
|
(63 |
)% |
Total vehicles |
|
(2.1 |
) |
|
|
(0.8 |
) |
|
(163 |
)% |
|
|
(9.5 |
) |
|
|
(2.4 |
) |
|
(296 |
)% |
Finance, insurance and other, net |
|
33.0 |
|
|
|
25.2 |
|
|
31 |
% |
|
|
73.4 |
|
|
|
47.5 |
|
|
55 |
% |
Total gross profit |
$ |
30.9 |
|
|
$ |
24.4 |
|
|
27 |
% |
|
$ |
63.9 |
|
|
$ |
45.1 |
|
|
42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Unit Sales Volume: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Used vehicles |
|
13,732 |
|
|
|
10,104 |
|
|
36 |
% |
|
|
29,823 |
|
|
|
18,791 |
|
|
59 |
% |
Wholesale vehicles |
|
2,462 |
|
|
|
1,849 |
|
|
33 |
% |
|
|
4,736 |
|
|
|
4,452 |
|
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross Profit Per Unit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total used vehicle and F&I |
$ |
2,244 |
|
|
$ |
2,290 |
|
|
(2 |
)% |
|
$ |
2,107 |
|
|
$ |
2,241 |
|
|
(6 |
)% |
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) |
||||||||||||
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||||
|
(In millions, except unit and per unit data) |
||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Retail new vehicles |
$ |
24.9 |
|
|
$ |
1.2 |
|
|
NM |
|
$ |
45.7 |
|
|
$ |
2.5 |
|
|
NM |
Used vehicles |
|
7.4 |
|
|
|
1.9 |
|
|
NM |
|
|
12.3 |
|
|
|
2.9 |
|
|
NM |
Wholesale vehicles |
|
0.4 |
|
|
|
0.2 |
|
|
NM |
|
|
0.5 |
|
|
|
0.2 |
|
|
NM |
Total vehicles |
|
32.7 |
|
|
|
3.3 |
|
|
NM |
|
|
58.5 |
|
|
|
5.6 |
|
|
NM |
Parts, service and collision repair |
|
10.3 |
|
|
|
1.1 |
|
|
NM |
|
|
17.0 |
|
|
|
1.8 |
|
|
NM |
Finance, insurance and other, net |
|
2.0 |
|
|
|
0.3 |
|
|
NM |
|
|
3.5 |
|
|
|
0.5 |
|
|
NM |
Total revenues |
|
45.0 |
|
|
|
4.7 |
|
|
NM |
|
|
79.0 |
|
|
|
7.9 |
|
|
NM |
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Retail new vehicles |
|
4.5 |
|
|
|
0.4 |
|
|
NM |
|
|
8.5 |
|
|
|
0.6 |
|
|
NM |
Used vehicles |
|
1.3 |
|
|
|
0.5 |
|
|
NM |
|
|
2.4 |
|
|
|
0.7 |
|
|
NM |
Wholesale vehicles |
|
— |
|
|
|
— |
|
|
NM |
|
|
(0.1 |
) |
|
|
— |
|
|
NM |
Total vehicles |
|
5.8 |
|
|
|
0.9 |
|
|
NM |
|
|
10.8 |
|
|
|
1.3 |
|
|
NM |
Parts, service and collision repair |
|
5.0 |
|
|
|
0.5 |
|
|
NM |
|
|
8.3 |
|
|
|
0.9 |
|
|
NM |
Finance, insurance and other, net |
|
2.0 |
|
|
|
0.3 |
|
|
NM |
|
|
3.5 |
|
|
|
0.5 |
|
|
NM |
Total gross profit |
|
12.8 |
|
|
|
1.7 |
|
|
NM |
|
|
22.6 |
|
|
|
2.7 |
|
|
NM |
Selling, general and administrative expenses |
|
(9.2 |
) |
|
|
(2.3 |
) |
|
NM |
|
|
(17.0 |
) |
|
|
(2.8 |
) |
|
NM |
Depreciation and amortization |
|
(0.8 |
) |
|
|
(0.1 |
) |
|
NM |
|
|
(1.6 |
) |
|
|
(0.2 |
) |
|
NM |
Operating income (loss) |
|
2.8 |
|
|
|
(0.7 |
) |
|
NM |
|
|
4.0 |
|
|
|
(0.3 |
) |
|
NM |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense, floor plan |
|
(0.3 |
) |
|
|
— |
|
|
NM |
|
|
(0.4 |
) |
|
|
— |
|
|
NM |
Interest expense, other, net |
|
(0.5 |
) |
|
|
— |
|
|
NM |
|
|
(1.1 |
) |
|
|
— |
|
|
NM |
Other income (expense), net |
|
— |
|
|
|
— |
|
|
NM |
|
|
0.1 |
|
|
|
— |
|
|
NM |
Total other income (expense) |
|
(0.8 |
) |
|
|
— |
|
|
NM |
|
|
(1.4 |
) |
|
|
— |
|
|
NM |
Income (loss) before taxes |
|
2.0 |
|
|
|
(0.7 |
) |
|
NM |
|
|
2.6 |
|
|
|
(0.3 |
) |
|
NM |
Add: Impairment charges |
|
— |
|
|
|
— |
|
|
NM |
|
|
— |
|
|
|
— |
|
|
NM |
Segment income (loss) |
$ |
2.0 |
|
|
$ |
(0.7 |
) |
|
NM |
|
$ |
2.6 |
|
|
$ |
(0.3 |
) |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Unit Sales Volume: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Retail new vehicles |
|
1,396 |
|
|
|
48 |
|
|
NM |
|
|
2,503 |
|
|
|
89 |
|
|
NM |
Used vehicles |
|
691 |
|
|
|
112 |
|
|
NM |
|
|
1,135 |
|
|
|
176 |
|
|
NM |
Wholesale vehicles |
|
50 |
|
|
|
— |
|
|
NM |
|
|
57 |
|
|
|
— |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gross Profit Per Unit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Retail new vehicles |
$ |
3,235 |
|
|
$ |
7,401 |
|
|
NM |
|
$ |
3,385 |
|
|
$ |
7,156 |
|
|
NM |
Used vehicles |
$ |
1,942 |
|
|
$ |
4,196 |
|
|
NM |
|
$ |
2,093 |
|
|
$ |
4,028 |
|
|
NM |
Finance, insurance and other, net |
$ |
952 |
|
|
$ |
1,933 |
|
|
NM |
|
$ |
964 |
|
|
$ |
1,818 |
|
|
NM |
NM = Not Meaningful |
|||||||||||||||||||
|
|||||||||||||||||||
Note: Year-over-year comparative financial results are not meaningful due to the timing of acquisitions of Horny Toad Harley-Davidson in |
|||||||||||||||||||
Non-GAAP Reconciliation - Consolidated - SG&A Expenses |
|
|
|
|
|
|
|
|||||||
|
Three Months Ended June 30, |
|
Better / (Worse) |
|||||||||||
|
2023 |
|
2022 |
|
Change |
|
% Change |
|||||||
|
(In millions) |
|||||||||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Compensation |
$ |
261.0 |
|
|
$ |
266.4 |
|
|
$ |
5.4 |
|
|
2 |
% |
Advertising |
|
22.8 |
|
|
|
25.6 |
|
|
|
2.8 |
|
|
11 |
% |
Rent |
|
11.5 |
|
|
|
13.7 |
|
|
|
2.2 |
|
|
16 |
% |
Other |
|
96.6 |
|
|
|
97.1 |
|
|
|
0.5 |
|
|
1 |
% |
Total SG&A expenses |
$ |
391.9 |
|
|
$ |
402.8 |
|
|
$ |
10.9 |
|
|
3 |
% |
Adjustments: |
|
|
|
|
|
|
|
|||||||
Acquisition and disposition-related gain (loss) |
$ |
20.7 |
|
|
$ |
— |
|
|
|
|
|
|||
Hail and storm damage charges |
|
(1.9 |
) |
|
|
— |
|
|
|
|
|
|||
Lease exit charges |
|
(0.4 |
) |
|
|
— |
|
|
|
|
|
|||
Severance and long-term compensation charges |
|
(2.2 |
) |
|
|
(4.4 |
) |
|
|
|
|
|||
Total SG&A adjustments |
$ |
16.2 |
|
|
$ |
(4.4 |
) |
|
|
|
|
|||
Adjusted: |
|
|
|
|
|
|
|
|||||||
Total adjusted SG&A expenses |
$ |
408.1 |
|
|
$ |
398.4 |
|
|
$ |
(9.7 |
) |
|
(2 |
)% |
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
|||||||
Compensation |
|
45.9 |
% |
|
|
45.2 |
% |
|
|
(70 |
) |
bps | ||
Advertising |
|
4.0 |
% |
|
|
4.3 |
% |
|
|
30 |
bps | |||
Rent |
|
2.0 |
% |
|
|
2.3 |
% |
|
|
30 |
bps | |||
Other |
|
17.0 |
% |
|
|
16.6 |
% |
|
|
(40 |
) |
bps | ||
Total SG&A expenses as a % of gross profit |
|
68.9 |
% |
|
|
68.4 |
% |
|
|
(50 |
) |
bps | ||
|
|
|
|
|
|
|
|
|||||||
Adjustments: |
|
|
|
|
|
|
||||||||
Acquisition and disposition-related gain (loss) |
|
2.0 |
% |
|
|
— |
% |
|
|
|
||||
Hail and storm damage charges |
|
(0.2 |
)% |
|
|
— |
% |
|
|
|
|
|||
Lease exit charges |
|
— |
% |
|
|
— |
% |
|
|
|
||||
Severance and long-term compensation charges |
|
(0.2 |
)% |
|
|
(0.7 |
)% |
|
|
|
||||
Total effect of adjustments |
|
1.6 |
% |
|
|
(0.7 |
)% |
|
|
|
||||
Adjusted: |
|
|
|
|
|
|
||||||||
Total adjusted SG&A expenses as a % of gross profit |
|
70.5 |
% |
|
|
67.7 |
% |
|
|
(280 |
) |
bps | ||
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Total gross profit |
$ |
568.9 |
|
|
$ |
588.8 |
|
|
$ |
(19.9 |
) |
|
(3 |
)% |
Adjustments: |
|
|
|
|
|
|
|
|||||||
Used vehicle inventory valuation adjustment |
$ |
10.0 |
|
|
$ |
— |
|
|
|
|
|
|||
Total adjustments |
$ |
10.0 |
|
|
$ |
— |
|
|
|
|
|
|||
Adjusted: |
|
|
|
|
|
|
|
|||||||
Total adjusted gross profit |
$ |
578.9 |
|
|
$ |
588.8 |
|
|
$ |
(9.9 |
) |
|
(2 |
)% |
Non-GAAP Reconciliation - Consolidated - SG&A Expenses (Continued) |
||||||||||||||
|
Six Months Ended June 30, |
|
Better / (Worse) |
|||||||||||
|
2023 |
|
2022 |
|
Change |
|
% Change |
|||||||
|
(In millions) |
|||||||||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Compensation |
$ |
519.7 |
|
|
$ |
518.9 |
|
|
$ |
(0.8 |
) |
|
— |
% |
Advertising |
|
48.9 |
|
|
|
51.7 |
|
|
|
2.8 |
|
|
5 |
% |
Rent |
|
22.8 |
|
|
|
26.4 |
|
|
|
3.6 |
|
|
14 |
% |
Other |
|
213.3 |
|
|
|
192.8 |
|
|
|
(20.5 |
) |
|
(11 |
)% |
Total SG&A expenses |
$ |
804.7 |
|
|
$ |
789.8 |
|
|
$ |
(14.9 |
) |
|
(2 |
)% |
Adjustments: |
|
|
|
|
|
|
|
|||||||
Acquisition and disposition-related gain (loss) |
$ |
20.7 |
|
|
$ |
— |
|
|
|
|
|
|||
Hail and storm damage charges |
|
(1.9 |
) |
|
|
— |
|
|
|
|
|
|||
Lease exit charges |
|
(0.4 |
) |
|
|
— |
|
|
|
|
|
|||
Severance and long-term compensation charges |
|
(4.2 |
) |
|
|
(4.4 |
) |
|
|
|
|
|||
Total SG&A adjustments |
$ |
14.2 |
|
|
$ |
(4.4 |
) |
|
|
|
|
|||
Adjusted: |
|
|
|
|
|
|
|
|||||||
Total adjusted SG&A expenses |
$ |
818.9 |
|
|
$ |
785.4 |
|
|
$ |
(33.5 |
) |
|
(4 |
)% |
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
|||||||
Compensation |
|
46.3 |
% |
|
|
44.7 |
% |
|
|
(160 |
) |
bps |
||
Advertising |
|
4.4 |
% |
|
|
4.5 |
% |
|
|
10 |
bps |
|||
Rent |
|
2.0 |
% |
|
|
2.3 |
% |
|
|
30 |
bps |
|||
Other |
|
19.0 |
% |
|
|
16.6 |
% |
|
|
(240 |
) |
bps |
||
Total SG&A expenses as a % of gross profit |
|
71.7 |
% |
|
|
68.1 |
% |
|
|
(360 |
) |
bps |
||
Adjustments: |
|
|
|
|
|
|
||||||||
Acquisition and disposition-related gain (loss) |
|
0.9 |
% |
|
|
— |
% |
|
|
|
||||
Hail and storm damage charges |
|
(0.1 |
)% |
|
|
— |
% |
|
|
|
|
|||
Lease exit charges |
|
— |
% |
|
|
— |
% |
|
|
|
||||
Severance and long-term compensation charges |
|
(0.2 |
)% |
|
|
(0.4 |
)% |
|
|
|
||||
Total effect of adjustments |
|
0.6 |
% |
|
|
(0.4 |
)% |
|
|
|
||||
Adjusted: |
|
|
|
|
|
|
||||||||
Total adjusted SG&A expenses as a % of gross profit |
|
72.3 |
% |
|
|
67.7 |
% |
|
|
(460 |
) |
bps | ||
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Total gross profit |
$ |
1,122.5 |
|
|
$ |
1,160.1 |
|
|
$ |
(37.6 |
) |
|
(3 |
)% |
Adjustments: |
|
|
|
|
|
|
|
|||||||
Used vehicle inventory valuation adjustment |
$ |
10.0 |
|
|
$ |
— |
|
|
|
|
|
|||
Total adjustments |
$ |
10.0 |
|
|
$ |
— |
|
|
|
|
|
|||
Adjusted: |
|
|
|
|
|
|
|
|||||||
Total adjusted gross profit |
$ |
1,132.5 |
|
|
$ |
1,160.1 |
|
|
$ |
(27.6 |
) |
|
(2 |
)% |
Non-GAAP Reconciliation - Franchised Dealerships Segment - SG&A Expenses |
||||||||||||||
|
Three Months Ended June 30, |
|
Better / (Worse) |
|||||||||||
|
2023 |
|
2022 |
|
Change |
|
% Change |
|||||||
|
(In millions) |
|||||||||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Compensation |
$ |
219.0 |
|
|
$ |
225.9 |
|
|
$ |
6.9 |
|
|
3 |
% |
Advertising |
|
8.7 |
|
|
|
7.8 |
|
|
|
(0.9 |
) |
|
(12 |
)% |
Rent |
|
9.4 |
|
|
|
11.0 |
|
|
|
1.6 |
|
|
15 |
% |
Other |
|
79.0 |
|
|
|
82.8 |
|
|
|
3.8 |
|
|
5 |
% |
Total SG&A expenses |
$ |
316.1 |
|
|
$ |
327.5 |
|
|
$ |
11.4 |
|
|
3 |
% |
Adjustments: |
|
|
|
|
|
|
|
|||||||
Acquisition and disposition-related gain (loss) |
$ |
20.9 |
|
|
$ |
— |
|
|
|
|
|
|||
Hail and storm damage charges |
|
(1.9 |
) |
|
|
— |
|
|
|
|
|
|||
Long-term compensation charges |
|
— |
|
|
|
(4.4 |
) |
|
|
|
|
|||
Total SG&A adjustments |
$ |
19.0 |
|
|
$ |
(4.4 |
) |
|
|
|
|
|||
Adjusted: |
|
|
|
|
|
|
|
|||||||
Total adjusted SG&A expenses |
$ |
335.1 |
|
|
$ |
323.1 |
|
|
$ |
(12.0 |
) |
|
(4 |
)% |
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
|||||||
Compensation |
|
41.4 |
% |
|
|
41.9 |
% |
|
|
50 |
|
bps |
||
Advertising |
|
1.6 |
% |
|
|
1.4 |
% |
|
|
(20 |
) |
bps |
||
Rent |
|
1.8 |
% |
|
|
2.0 |
% |
|
|
20 |
|
bps |
||
Other |
|
14.9 |
% |
|
|
15.4 |
% |
|
|
50 |
|
bps |
||
Total SG&A expenses as a % of gross profit |
|
59.7 |
% |
|
|
60.7 |
% |
|
|
100 |
|
bps |
||
Adjustments: |
|
|
|
|
|
|
||||||||
Acquisition and disposition-related gain (loss) |
|
4.0 |
% |
|
|
— |
% |
|
|
|
||||
Hail and storm damage charges |
|
(0.4 |
)% |
|
|
— |
% |
|
|
|
|
|||
Long-term compensation charges |
|
— |
% |
|
|
(0.8 |
)% |
|
|
|
||||
Total effect of adjustments |
|
3.6 |
% |
|
|
(0.8 |
)% |
|
|
|
||||
Adjusted: |
|
|
|
|
|
|
||||||||
Total adjusted SG&A expenses as a % of gross profit |
|
63.3 |
% |
|
|
59.9 |
% |
|
|
(340 |
) |
bps |
||
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Total gross profit |
$ |
529.3 |
|
|
$ |
539.3 |
|
|
$ |
(10.0 |
) |
|
(2 |
)% |
Non-GAAP Reconciliation - Franchised Dealerships Segment - SG&A Expenses (Continued) |
||||||||||||||
|
Six Months Ended June 30, |
|
Better / (Worse) |
|||||||||||
|
2023 |
|
2022 |
|
Change |
|
% Change |
|||||||
|
(In millions) |
|||||||||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Compensation |
$ |
432.8 |
|
|
$ |
441.0 |
|
|
$ |
8.2 |
|
|
2 |
% |
Advertising |
|
18.6 |
|
|
|
15.6 |
|
|
|
(3.0 |
) |
|
(19 |
)% |
Rent |
|
19.5 |
|
|
|
21.9 |
|
|
|
2.4 |
|
|
11 |
% |
Other |
|
176.4 |
|
|
|
164.4 |
|
|
|
(12.0 |
) |
|
(7 |
)% |
Total SG&A expenses |
$ |
647.3 |
|
|
$ |
642.9 |
|
|
$ |
(4.4 |
) |
|
(1 |
)% |
Adjustments: |
|
|
|
|
|
|
|
|||||||
Acquisition and disposition-related gain (loss) |
$ |
20.9 |
|
|
$ |
— |
|
|
|
|
|
|||
Hail and storm damage charges |
|
(1.9 |
) |
|
|
— |
|
|
|
|
|
|||
Long-term compensation charges |
|
— |
|
|
|
(4.4 |
) |
|
|
|
|
|||
Total SG&A adjustments |
$ |
19.0 |
|
|
$ |
(4.4 |
) |
|
|
|
|
|||
Adjusted: |
|
|
|
|
|
|
|
|||||||
Total adjusted SG&A expenses |
$ |
666.3 |
|
|
$ |
638.5 |
|
|
$ |
(27.8 |
) |
|
(4 |
)% |
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
|||||||
Compensation |
|
41.9 |
% |
|
|
41.4 |
% |
|
|
(50 |
) |
bps |
||
Advertising |
|
1.8 |
% |
|
|
1.5 |
% |
|
|
(30 |
) |
bps |
||
Rent |
|
1.9 |
% |
|
|
2.1 |
% |
|
|
20 |
|
bps |
||
Other |
|
17.0 |
% |
|
|
15.3 |
% |
|
|
(170 |
) |
bps |
||
Total SG&A expenses as a % of gross profit |
|
62.6 |
% |
|
|
60.3 |
% |
|
|
(230 |
) |
bps |
||
Adjustments: |
|
|
|
|
|
|
||||||||
Acquisition and disposition-related gain (loss) |
|
2.1 |
% |
|
|
— |
% |
|
|
|
||||
Hail and storm damage charges |
|
(0.2 |
)% |
|
|
— |
% |
|
|
|
|
|||
Long-term compensation charges |
|
— |
% |
|
|
(0.4 |
)% |
|
|
|
||||
Total effect of adjustments |
|
1.9 |
% |
|
|
(0.4 |
)% |
|
|
|
||||
Adjusted: |
|
|
|
|
|
|
||||||||
Total adjusted SG&A expenses as a % of gross profit |
|
64.5 |
% |
|
|
59.9 |
% |
|
|
(460 |
) |
bps |
||
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Total gross profit |
$ |
1,033.6 |
|
|
$ |
1,066.3 |
|
|
$ |
(32.7 |
) |
|
(3 |
)% |
Non-GAAP Reconciliation - EchoPark Segment - SG&A Expenses |
||||||||||||||
|
Three Months Ended June 30, |
|
Better / (Worse) |
|||||||||||
|
2023 |
|
2022 |
|
Change |
|
% Change |
|||||||
|
(In millions) |
|||||||||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Compensation |
$ |
35.4 |
|
|
$ |
38.6 |
|
|
$ |
3.2 |
|
|
8 |
% |
Advertising |
|
13.7 |
|
|
|
17.8 |
|
|
|
4.1 |
|
|
23 |
% |
Rent |
|
2.1 |
|
|
|
2.7 |
|
|
|
0.6 |
|
|
22 |
% |
Other |
|
15.4 |
|
|
|
13.9 |
|
|
|
(1.5 |
) |
|
(11 |
)% |
Total SG&A expenses |
$ |
66.6 |
|
|
$ |
73.0 |
|
|
$ |
6.4 |
|
|
9 |
% |
Adjustments: |
|
|
|
|
|
|
|
|||||||
Acquisition and disposition-related gain (loss) |
$ |
(0.2 |
) |
|
$ |
— |
|
|
|
|
|
|||
Lease exit charges |
|
(0.4 |
) |
|
|
— |
|
|
|
|
|
|||
Severance charges |
|
(2.2 |
) |
|
|
— |
|
|
|
|
|
|||
Total SG&A adjustments |
$ |
(2.8 |
) |
|
$ |
— |
|
|
|
|
|
|||
Adjusted: |
|
|
|
|
|
|
|
|||||||
Total adjusted SG&A expenses |
$ |
63.8 |
|
|
$ |
73.0 |
|
|
$ |
9.2 |
|
|
12.6 |
% |
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
|||||||
Compensation |
|
132.2 |
% |
|
|
80.8 |
% |
|
|
NM |
|
|
||
Advertising |
|
51.2 |
% |
|
|
37.1 |
% |
|
|
NM |
|
|
||
Rent |
|
8.0 |
% |
|
|
5.7 |
% |
|
|
(230 |
) |
bps |
||
Other |
|
57.1 |
% |
|
|
29.0 |
% |
|
|
NM |
|
|
||
Total SG&A expenses as a % of gross profit |
|
248.5 |
% |
|
|
152.6 |
% |
|
|
NM |
|
|
||
Adjustments: |
|
|
|
|
|
|
||||||||
Acquisition and disposition-related gain (loss) |
|
(5.4 |
)% |
|
|
— |
% |
|
|
|
||||
Lease exit charges |
|
(10.7 |
)% |
|
|
— |
% |
|
|
|
||||
Severance charges |
|
(58.9 |
)% |
|
|
— |
% |
|
|
|
||||
Total effect of adjustments |
|
(75.0 |
)% |
|
|
— |
% |
|
|
|
||||
Adjusted: |
|
|
|
|
|
|
||||||||
Total adjusted SG&A expenses as a % of gross profit |
|
173.5 |
% |
|
|
152.6 |
% |
|
|
NM |
|
|
||
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Total gross profit |
$ |
26.8 |
|
|
$ |
47.8 |
|
|
$ |
(21.0 |
) |
|
(44 |
)% |
Adjustments: |
|
|
|
|
|
|
|
|||||||
Used vehicle inventory valuation adjustment |
$ |
10.0 |
|
|
$ |
— |
|
|
|
|
|
|||
Total adjustments |
$ |
10.0 |
|
|
$ |
— |
|
|
|
|
|
|||
Adjusted: |
|
|
|
|
|
|
|
|||||||
Total adjusted gross profit |
$ |
36.8 |
|
|
$ |
47.8 |
|
|
$ |
(11.0 |
) |
|
(23 |
)% |
NM = Not Meaningful |
||||||||||||||
Non-GAAP Reconciliation - EchoPark Segment - SG&A Expenses (Continued) |
||||||||||||||
|
Six Months Ended June 30, |
|
Better / (Worse) |
|||||||||||
|
2023 |
|
2022 |
|
Change |
|
% Change |
|||||||
|
(In millions) |
|||||||||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Compensation |
$ |
75.1 |
|
|
$ |
75.7 |
|
|
$ |
0.6 |
|
|
1 |
% |
Advertising |
|
29.5 |
|
|
|
36.0 |
|
|
|
6.5 |
|
|
18 |
% |
Rent |
|
3.2 |
|
|
|
4.5 |
|
|
|
1.3 |
|
|
29 |
% |
Other |
|
32.6 |
|
|
|
27.9 |
|
|
|
(4.7 |
) |
|
(17 |
)% |
Total SG&A expenses |
$ |
140.4 |
|
|
$ |
144.1 |
|
|
$ |
3.7 |
|
|
3 |
% |
Adjustments: |
|
|
|
|
|
|
|
|||||||
Acquisition and disposition-related gain (loss) |
$ |
(0.2 |
) |
|
$ |
— |
|
|
|
|
|
|||
Lease exit charges |
|
(0.4 |
) |
|
|
— |
|
|
|
|
|
|||
Severance and long-term compensation charges |
|
(4.2 |
) |
|
|
— |
|
|
|
|
|
|||
Total SG&A adjustments |
$ |
(4.8 |
) |
|
$ |
— |
|
|
|
|
|
|||
Adjusted: |
|
|
|
|
|
|
|
|||||||
Total adjusted SG&A expenses |
$ |
135.6 |
|
|
$ |
144.1 |
|
|
$ |
8.5 |
|
|
5.9 |
% |
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
|||||||
Compensation |
|
113.4 |
% |
|
|
83.1 |
% |
|
|
NM |
|
|
||
Advertising |
|
44.5 |
% |
|
|
39.6 |
% |
|
|
(490 |
) |
bps |
||
Rent |
|
4.9 |
% |
|
|
4.9 |
% |
|
|
— |
|
bps |
||
Other |
|
49.2 |
% |
|
|
30.6 |
% |
|
|
NM |
|
|
||
Total SG&A expenses as a % of gross profit |
|
212.0 |
% |
|
|
158.2 |
% |
|
|
NM |
|
|
||
Adjustments: |
|
|
|
|
|
|
||||||||
Acquisition and disposition-related gain (loss) |
|
(1.4 |
)% |
|
|
— |
% |
|
|
|
||||
Lease exit charges |
|
(2.8 |
)% |
|
|
— |
% |
|
|
|
||||
Severance and long-term compensation charges |
|
(29.8 |
)% |
|
|
— |
% |
|
|
|
||||
Total effect of adjustments |
|
(34.1 |
)% |
|
|
— |
% |
|
|
|
||||
Adjusted: |
|
|
|
|
|
|
||||||||
Total adjusted SG&A expenses as a % of gross profit |
|
177.9 |
% |
|
|
158.2 |
% |
|
|
NM |
|
|
||
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Total gross profit |
$ |
66.2 |
|
|
$ |
91.1 |
|
|
$ |
(24.9 |
) |
|
(27 |
)% |
Adjustments: |
|
|
|
|
|
|
|
|||||||
Used vehicle inventory valuation adjustment |
$ |
10.0 |
|
|
$ |
— |
|
|
|
|
|
|||
Total adjustments |
$ |
10.0 |
|
|
$ |
— |
|
|
|
|
|
|||
Adjusted: |
|
|
|
|
|
|
|
|||||||
Total adjusted gross profit |
$ |
76.2 |
|
|
$ |
91.1 |
|
|
$ |
(14.9 |
) |
|
(16 |
)% |
NM = Not Meaningful |
||||||||||||||
Non-GAAP Reconciliation - Powersports Segment - SG&A Expenses |
|||||||||||||
|
Three Months Ended June 30, |
|
Better / (Worse) |
||||||||||
|
2023 |
|
2022 |
|
Change |
|
% Change |
||||||
|
(In millions) |
||||||||||||
Reported: |
|
|
|
|
|
|
|
||||||
Compensation |
$ |
6.6 |
|
|
$ |
1.9 |
|
|
$ |
(4.7 |
) |
|
NM |
Advertising |
|
0.4 |
|
|
|
— |
|
|
|
(0.4 |
) |
|
NM |
Rent |
|
— |
|
|
|
— |
|
|
|
— |
|
|
NM |
Other |
|
2.2 |
|
|
|
0.4 |
|
|
|
(1.8 |
) |
|
NM |
Total SG&A expenses |
$ |
9.2 |
|
|
$ |
2.3 |
|
|
$ |
(6.9 |
) |
|
NM |
|
|
|
|
|
|
|
|
||||||
Reported: |
|
|
|
|
|
|
|
||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
||||||
Compensation |
|
51.3 |
% |
|
|
110.8 |
% |
|
|
NM |
|
|
|
Advertising |
|
2.9 |
% |
|
|
2.3 |
% |
|
|
NM |
|
|
|
Rent |
|
0.2 |
% |
|
|
— |
% |
|
|
NM |
|
|
|
Other |
|
17.2 |
% |
|
|
22.0 |
% |
|
|
NM |
|
|
|
Total SG&A expenses as a % of gross profit |
|
71.6 |
% |
|
|
135.1 |
% |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
||||||
Reported: |
|
|
|
|
|
|
|
||||||
Total gross profit |
$ |
12.8 |
|
|
$ |
1.7 |
|
|
$ |
11.1 |
|
|
NM |
NM = Not Meaningful |
|||||||||||||
|
|
|
|
|
|
|
|
||||||
|
Six Months Ended June 30, |
|
Better / (Worse) |
||||||||||
|
2023 |
|
2022 |
|
Change |
|
% Change |
||||||
|
(In millions) |
||||||||||||
Reported: |
|
|
|
|
|
|
|
||||||
Compensation |
$ |
11.8 |
|
|
$ |
2.2 |
|
|
$ |
(9.6 |
) |
|
NM |
Advertising |
|
0.8 |
|
|
|
0.1 |
|
|
|
(0.7 |
) |
|
NM |
Rent |
|
0.1 |
|
|
|
— |
|
|
|
(0.1 |
) |
|
NM |
Other |
|
4.3 |
|
|
|
0.5 |
|
|
|
(3.8 |
) |
|
NM |
Total SG&A expenses |
$ |
17.0 |
|
|
$ |
2.8 |
|
|
$ |
(14.2 |
) |
|
NM |
|
|
|
|
|
|
|
|
||||||
Reported: |
|
|
|
|
|
|
|
||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
||||||
Compensation |
|
52.4 |
% |
|
|
80.0 |
% |
|
|
NM |
|
|
|
Advertising |
|
3.5 |
% |
|
|
2.2 |
% |
|
|
NM |
|
|
|
Rent |
|
0.3 |
% |
|
|
— |
% |
|
|
NM |
|
|
|
Other |
|
19.0 |
% |
|
|
21.3 |
% |
|
|
NM |
|
|
|
Total SG&A expenses as a % of gross profit |
|
75.2 |
% |
|
|
103.5 |
% |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
||||||
Reported: |
|
|
|
|
|
|
|
||||||
Total gross profit |
$ |
22.6 |
|
|
$ |
2.7 |
|
|
$ |
19.9 |
|
|
NM |
NM = Not Meaningful |
|||||||||||||
Non-GAAP Reconciliation - Franchised Dealerships Segment - Income (Loss) Before Taxes and Segment Income (Loss) |
|||||||||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||||||
|
(In millions) |
||||||||||||||||||||
Reported: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) before taxes |
$ |
145.9 |
|
|
$ |
162.1 |
|
(10 |
)% |
|
$ |
255.8 |
|
|
$ |
326.0 |
|
(22 |
)% |
||
Add: Impairment charges |
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
||||
Segment income (loss) |
$ |
145.9 |
|
|
$ |
162.1 |
|
(10 |
)% |
|
$ |
255.8 |
|
|
$ |
326.0 |
|
(22 |
)% |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Acquisition and disposition-related (gain) loss |
$ |
(20.9 |
) |
|
$ |
— |
|
|
|
$ |
(20.9 |
) |
|
$ |
— |
|
|
||||
Hail and storm damage charges |
|
1.9 |
|
|
|
— |
|
|
|
|
1.9 |
|
|
|
— |
|
|
||||
Long-term compensation charges |
|
— |
|
|
|
4.4 |
|
|
|
|
— |
|
|
|
4.4 |
|
|
||||
Total pre-tax adjustments |
$ |
(19.0 |
) |
|
$ |
4.4 |
|
|
|
$ |
(19.0 |
) |
|
$ |
4.4 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment income (loss) |
$ |
126.9 |
|
|
$ |
166.5 |
|
(24 |
)% |
|
$ |
236.8 |
|
|
$ |
330.4 |
|
(28 |
)% |
||
Non-GAAP Reconciliation - EchoPark Segment - Income (Loss) Before Taxes and Segment Income (Loss) |
|||||||||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
||
|
(In millions) |
||||||||||||||||||||
Reported: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) before taxes |
$ |
(115.4 |
) |
|
$ |
(34.2 |
) |
|
(237 |
)% |
|
$ |
(162.3 |
) |
|
$ |
(69.6 |
) |
|
(133 |
)% |
Add: Impairment charges |
|
62.6 |
|
|
|
— |
|
|
|
|
|
62.6 |
|
|
|
— |
|
|
|
||
Segment income (loss) |
$ |
(52.8 |
) |
|
$ |
(34.2 |
) |
|
(54 |
)% |
|
$ |
(99.7 |
) |
|
$ |
(69.6 |
) |
|
(43 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Acquisition and disposition-related (gain) loss |
$ |
0.2 |
|
|
$ |
— |
|
|
|
|
$ |
0.2 |
|
|
$ |
— |
|
|
|
||
Lease exit charges |
|
0.4 |
|
|
|
— |
|
|
|
|
|
0.4 |
|
|
|
— |
|
|
|
||
Severance and long-term compensation charges |
|
2.2 |
|
|
|
— |
|
|
|
|
|
4.2 |
|
|
|
— |
|
|
|
||
Used vehicle inventory valuation adjustment |
|
10.0 |
|
|
|
— |
|
|
|
|
|
10.0 |
|
|
|
— |
|
|
|
||
Total pre-tax adjustments |
$ |
12.8 |
|
|
$ |
— |
|
|
|
|
$ |
14.8 |
|
|
$ |
— |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment income (loss) |
$ |
(40.0 |
) |
|
$ |
(34.2 |
) |
|
(17 |
)% |
|
$ |
(84.9 |
) |
|
$ |
(69.6 |
) |
|
(22 |
)% |
Non-GAAP Reconciliation - Powersports Segment - Income (Loss) Before Taxes and Segment Income (Loss) |
|||||||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||||
|
(In millions) |
||||||||||||||||||
Reported: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before taxes |
$ |
2.0 |
|
$ |
(0.7 |
) |
|
NM |
|
$ |
2.6 |
|
$ |
(0.3 |
) |
|
NM |
||
Add: Impairment charges |
|
— |
|
|
— |
|
|
|
|
|
— |
|
|
— |
|
|
|
||
Segment income (loss) |
$ |
2.0 |
|
$ |
(0.7 |
) |
|
NM |
|
|
2.6 |
|
|
(0.3 |
) |
|
NM |
||
NM = Not Meaningful |
|||||||||||||||||||
Non-GAAP Reconciliation - Consolidated - Net Income (Loss) and Diluted Earnings (Loss) Per Share |
||||||||||||||||
|
Three Months Ended June 30, 2023 |
|
Three Months Ended June 30, 2022 |
|||||||||||||
|
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 |
36.0 |
|
$ |
23.4 |
|
|
$ |
0.65 |
|
40.5 |
|
$ |
94.8 |
|
$ |
2.34 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Acquisition and disposition-related gain (loss) |
|
|
$ |
(20.7 |
) |
|
|
|
|
|
$ |
— |
|
|
||
Hail and storm damage charges |
|
|
|
1.9 |
|
|
|
|
|
|
|
— |
|
|
||
Impairment charges |
|
|
|
62.6 |
|
|
|
|
|
|
|
— |
|
|
||
Lease exit charges |
|
|
|
0.4 |
|
|
|
|
|
|
|
— |
|
|
||
Severance and long-term compensation charges |
|
|
|
2.2 |
|
|
|
|
|
|
|
4.4 |
|
|
||
Used vehicle inventory valuation adjustment |
|
|
|
10.0 |
|
|
|
|
|
|
|
— |
|
|
||
Total pre-tax items of interest |
|
|
$ |
56.4 |
|
|
|
|
|
|
$ |
4.4 |
|
|
||
Tax effect of above items |
|
|
|
(13.8 |
) |
|
|
|
|
|
|
— |
|
|
||
Adjusted net income (loss), diluted shares, and diluted earnings (loss) per share |
36.0 |
|
$ |
66.0 |
|
|
$ |
1.83 |
|
40.5 |
|
$ |
99.2 |
|
$ |
2.45 |
|
Six Months Ended June 30, 2023 |
|
Six Months Ended June 30, 2022 |
|||||||||||||
|
Weighted- Average Shares |
|
Net Income
|
|
Per Share Amount |
|
Weighted- Average Shares |
|
Net Income
|
|
Per Share Amount |
|||||
|
(In millions, except per share amounts) |
|||||||||||||||
Reported net income (loss), diluted shares, and diluted earnings (loss) per share |
36.5 |
|
$ |
71.1 |
|
|
$ |
1.95 |
|
41.2 |
|
$ |
192.1 |
|
$ |
4.67 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Acquisition and disposition-related gain (loss) |
|
|
$ |
(20.7 |
) |
|
|
|
|
|
$ |
— |
|
|
||
Hail and storm damage charges |
|
|
|
1.9 |
|
|
|
|
|
|
|
— |
|
|
||
Impairment charges |
|
|
|
62.6 |
|
|
|
|
|
|
|
— |
|
|
||
Lease exit charges |
|
|
|
0.4 |
|
|
|
|
|
|
|
— |
|
|
||
Severance and long-term compensation charges |
|
|
|
4.2 |
|
|
|
|
|
|
|
4.4 |
|
|
||
Used vehicle inventory valuation adjustment |
|
|
|
10.0 |
|
|
|
|
|
|
|
— |
|
|
||
Total pre-tax items of interest |
|
|
$ |
58.4 |
|
|
|
|
|
|
$ |
4.4 |
|
|
||
Tax effect of above items |
|
|
|
(14.3 |
) |
|
|
|
|
|
|
— |
|
|
||
Adjusted net income (loss), diluted shares, and diluted earnings (loss) per share |
36.5 |
|
$ |
115.2 |
|
|
$ |
3.16 |
|
41.2 |
|
$ |
196.5 |
|
$ |
4.77 |
Non-GAAP Reconciliation - Adjusted EBITDA |
|||||||||||||||||||||||||||||
|
Three Months Ended June 30, 2023 |
|
Three Months Ended June 30, 2022 |
||||||||||||||||||||||||||
|
Franchised
|
|
EchoPark
|
|
Powersports
|
|
Total |
|
Franchised
|
|
EchoPark
|
|
Powersports
|
|
Total |
||||||||||||||
|
(In millions) |
||||||||||||||||||||||||||||
Net income (loss) |
|
|
|
|
|
|
$ |
23.4 |
|
|
|
|
|
|
|
|
$ |
94.8 |
|||||||||||
Provision for income taxes |
|
|
|
|
|
|
|
9.1 |
|
|
|
|
|
|
|
|
|
32.4 |
|||||||||||
Income (loss) before taxes |
$ |
145.9 |
|
|
$ |
(115.4 |
) |
|
$ |
2.0 |
|
$ |
32.5 |
|
|
$ |
162.1 |
|
$ |
(34.2 |
) |
|
$ |
(0.7 |
) |
|
$ |
127.2 |
|
Non-floor plan interest (1) |
|
25.8 |
|
|
|
0.8 |
|
|
|
0.6 |
|
|
27.2 |
|
|
|
19.1 |
|
|
1.0 |
|
|
|
— |
|
|
|
20.1 |
|
Depreciation and amortization (2) |
|
29.5 |
|
|
|
7.4 |
|
|
|
0.8 |
|
|
37.7 |
|
|
|
26.4 |
|
|
5.9 |
|
|
|
0.1 |
|
|
|
32.4 |
|
Stock-based compensation expense |
|
5.6 |
|
|
|
— |
|
|
|
— |
|
|
5.6 |
|
|
|
4.2 |
|
|
— |
|
|
|
— |
|
|
|
4.2 |
|
Loss (gain) on exit of leased dealerships |
|
— |
|
|
|
0.4 |
|
|
|
— |
|
|
0.4 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Impairment charges |
|
— |
|
|
|
62.6 |
|
|
|
— |
|
|
62.6 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Severance and long-term compensation charges |
|
— |
|
|
|
2.2 |
|
|
|
— |
|
|
2.2 |
|
|
|
4.4 |
|
|
— |
|
|
|
— |
|
|
|
4.4 |
|
Acquisition and disposition related (gain) loss |
|
(20.9 |
) |
|
|
0.2 |
|
|
|
— |
|
|
(20.7 |
) |
|
|
0.1 |
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
Hail and storm damage charges |
|
1.9 |
|
|
|
— |
|
|
|
— |
|
|
1.9 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Used vehicle inventory valuation adjustment |
|
— |
|
|
|
10.0 |
|
|
|
— |
|
|
10.0 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted EBITDA |
$ |
187.8 |
|
|
$ |
(31.8 |
) |
|
$ |
3.4 |
|
$ |
159.4 |
|
|
$ |
216.3 |
|
$ |
(27.3 |
) |
|
$ |
(0.6 |
) |
|
$ |
188.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Six Months Ended June 30, 2023 |
|
Six Months Ended June 30, 2022 |
|||||||||||||||||||||||||||
|
Franchised
|
|
EchoPark
|
|
Powersports
|
|
Total |
|
Franchised
|
|
EchoPark
|
|
Powersports
|
|
Total |
|||||||||||||||
|
(In millions) |
|||||||||||||||||||||||||||||
Net income (loss) |
|
|
|
|
|
|
$ |
71.1 |
|
|
|
|
|
|
|
|
$ |
192.1 |
|
|||||||||||
Provision for income taxes |
|
|
|
|
|
|
|
25.0 |
|
|
|
|
|
|
|
|
|
64.0 |
|
|||||||||||
Income (loss) before taxes |
$ |
255.8 |
|
|
$ |
(162.3 |
) |
|
$ |
2.6 |
|
$ |
96.1 |
|
|
$ |
326.0 |
|
|
$ |
(69.6 |
) |
|
$ |
(0.3 |
) |
|
$ |
256.1 |
|
Non-floor plan interest (1) |
|
51.2 |
|
|
|
1.7 |
|
|
|
1.2 |
|
|
54.1 |
|
|
|
38.1 |
|
|
|
1.7 |
|
|
|
— |
|
|
|
39.8 |
|
Depreciation & amortization (2) |
|
57.7 |
|
|
|
14.4 |
|
|
|
1.5 |
|
|
73.6 |
|
|
|
52.3 |
|
|
|
11.0 |
|
|
|
0.2 |
|
|
|
63.5 |
|
Stock-based compensation expense |
|
10.6 |
|
|
|
— |
|
|
|
— |
|
|
10.6 |
|
|
|
8.6 |
|
|
|
— |
|
|
|
— |
|
|
|
8.6 |
|
Loss (gain) on exit of leased dealerships |
|
— |
|
|
|
0.4 |
|
|
|
— |
|
|
0.4 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Impairment charges |
|
— |
|
|
|
62.6 |
|
|
|
— |
|
|
62.6 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Severance and long-term compensation charges |
|
— |
|
|
|
4.2 |
|
|
|
— |
|
|
4.2 |
|
|
|
4.4 |
|
|
|
— |
|
|
|
— |
|
|
|
4.4 |
|
Acquisition and disposition related (gain) loss |
|
(20.9 |
) |
|
|
0.2 |
|
|
|
— |
|
|
(20.7 |
) |
|
|
(1.0 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1.0 |
) |
Hail and storm damage charges |
|
1.9 |
|
|
|
— |
|
|
|
— |
|
|
1.9 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Used vehicle inventory valuation adjustment |
|
— |
|
|
|
10.0 |
|
|
|
— |
|
|
10.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted EBITDA |
$ |
356.3 |
|
|
$ |
(68.8 |
) |
|
$ |
5.3 |
|
$ |
292.8 |
|
|
$ |
428.4 |
|
|
$ |
(56.9 |
) |
|
$ |
(0.1 |
) |
|
$ |
371.4 |
|
(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/20230727411352/en/
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
Source: Sonic Automotive, Inc.
FAQ
What are Sonic Automotive's Q2 2023 revenues?
What is the expected impact of the strategic adjustments to EchoPark business?
What is the liquidity position of Sonic Automotive as of June 30, 2023?
What is the expected return to breakeven EchoPark Segment adjusted EBITDA*?
What was the net income in Q2 2023?
How did the EchoPark Segment perform in Q2 2023?
What were the financial results of the Franchised Dealerships Segment in Q2 2023?
What was the dividend approved by Sonic's Board of Directors?
