Sonic Automotive Reports First Quarter Financial Results
- EchoPark segment achieved an all-time record quarterly adjusted EBITDA of $7.3 million in the first quarter of 2024.
- Total revenues were $3.4 billion, down 3% year-over-year, with total gross profit of $536.2 million, down 3% year-over-year.
- Reported net income was $42.0 million, down 12% year-over-year. Adjusted net income was $47.5 million, down 3% year-over-year.
- The Franchised Dealerships Segment saw same store revenues up 1% and same store retail new vehicle unit sales volume up 5%.
- Powersports Segment had revenues of $27.7 million, down 19%, with a segment loss of $2.3 million and adjusted EBITDA loss of $0.8 million.
- Sonic's Board of Directors approved a quarterly cash dividend of $0.30 per share.
- The company repurchased approximately 0.5 million shares of its Class A Common Stock for an aggregate purchase price of approximately $27.0 million.
- The total revenues decreased by 3% year-over-year.
- Reported net income was down by 12% year-over-year.
- The Powersports Segment had a revenue decrease of 19% and a loss of $2.3 million.
- Adjusted net income decreased by 3% year-over-year.
Insights
Reviewing the reported financials of Sonic Automotive indicates an intricate situation, with top-line revenue and gross profit both experiencing a
For the EchoPark Segment, the
The Franchised Dealerships Segment presents a mixed outcome. A nominal
The dynamics within the automotive retail sector are complex, influenced by shifting consumer preferences, economic factors and supply chain constraints. Sonic Automotive's decrease in new and used vehicle gross profits per unit is symptomatic of a broader industry trend where dealerships face margin pressure due to increased competition and a normalization following pandemic-driven demand spikes. The retail investor should note that the Powersports Segment's seasonal loss is expected, but its performance relative to company projections can serve as a barometer for management's forecasting accuracy and operational execution.
Additionally, the positive growth in fixed operations gross profit underscores the importance of service and parts divisions in the dealership business model. Investors might consider the long-term potential in these ancillary services, which could provide a buffer against the volatility of vehicle sales.
The stock repurchase of 0.5 million shares signals confidence from management in the company's intrinsic value. It can be a positive sign to investors, but it should be evaluated in the context of the company's overall capital allocation strategy and balance sheet health, especially given the mention of $847 million in liquidity. Ultimately, shareholder value is not just about short-term earnings performances but also about strategic reinvestments and debt management.
The industry-specific mention of 'days' supply of new and used vehicle inventory' offers a glimpse into Sonic Automotive's inventory management and market positioning. A healthy supply that's not excessive suggests the company is managing its inventory efficiently amid the current market dynamics. The Franchised Dealerships Segment's increase in new vehicle unit sales but lower gross profits per unit could indicate aggressive pricing strategies to maintain sales volumes. In contrast, the EchoPark Segment's increase in gross profits amid decreasing sales volumes could imply a more premium pricing model or improved cost efficiencies.
On the other hand, the EchoPark Segment's significant EBITDA improvement despite closed stores points to a strategic realignment that could be either a formidable pivot or a red flag depending on future performance. Investors should monitor how Sonic Automotive balances its portfolio across different segments to optimize profitability and mitigate risks.
Lastly, the announcement of a quarterly cash dividend is a tangible return to investors and reflects a degree of financial stability and commitment to shareholder returns. As retail investors balance growth prospects with dividend yield, this could influence their perception of the stock's attractiveness within the automotive retail industry.
EchoPark Segment Achieved All-Time Record Quarterly Adjusted EBITDA* in the First Quarter of 2024, Exceeding Previously Stated Target of Breakeven Adjusted EBITDA* in the First Quarter
First Quarter 2024 Financial Summary
-
Total revenues of
$3.4 billion 3% year-over-year; total gross profit of$536.2 million 3% year-over-year -
Reported net income of
$42.0 million 12% year-over-year ($1.20 7% year-over-year)-
Reported net income includes the effects of a
$2.2 million $1.0 million $4.2 million $1.9 million -
Excluding these items, adjusted net income* was
$47.5 million 3% year-over-year ($1.36 2% year-over-year)
-
Reported net income includes the effects of a
-
Total reported selling, general and administrative (“SG&A”) expenses as a percentage of gross profit of
73.1% (71.1% on a Franchised Dealerships Segment basis,86.6% on an EchoPark Segment basis, and104.8% on a Powersports Segment basis)-
Total adjusted SG&A expenses as a percentage of gross profit* of
72.0% (70.7% on a Franchised Dealerships Segment basis,78.6% on an EchoPark Segment basis, and104.8% on a Powersports Segment basis)
-
Total adjusted SG&A expenses as a percentage of gross profit* of
-
EchoPark Segment revenues of
$559.4 million 14% year-over-year; record first quarter EchoPark Segment total gross profit of$52.6 million 34% year-over-year; EchoPark Segment retail used vehicle unit sales volume of 17,981, down10% year-over-year -
Reported EchoPark Segment loss of
$2.9 million $1.3 million -
All-time record quarterly EchoPark Segment adjusted EBITDA* of
$7.3 million 120% year-over-year- Exceeded previously issued target for an expected return to breakeven EchoPark Segment adjusted EBITDA* in the first quarter of 2024
-
Excluding closed stores, EchoPark Segment adjusted EBITDA* was
$9.4 million 142% improvement year-over-year
-
During the first quarter, Sonic repurchased approximately 0.5 million shares of its Class A Common Stock for an aggregate purchase price of approximately
$27.0 million
* Represents a non-GAAP financial measure - please refer to the discussion and reconciliation of non-GAAP financial measures below.
Commentary
David Smith, Chairman and Chief Executive Officer of Sonic Automotive, stated, “We are proud of our team’s performance in the first quarter, with our diversified business model and commitment to returning capital to stockholders driving year-over-year growth in adjusted earnings per share* despite the continued normalization of new vehicle margins in our franchised dealerships segment. During the quarter, our EchoPark Segment results exceeded our previously communicated target for breakeven adjusted EBITDA*, and we are excited to report all-time record quarterly EchoPark Segment adjusted EBITDA* for the first quarter. We remain confident that we have the right strategy, the right people, and the right culture to continue to grow our diversified business and create long-term value for our stakeholders.”
Jeff Dyke, President of Sonic Automotive, commented, “Our EchoPark results in the first quarter demonstrate our team's valuable industry experience and the adaptability of our innovative EchoPark model, and validate the difficult decisions we made to right-size our EchoPark footprint over the last several quarters. Based on recent trends and our outlook for gradual improvement in the used vehicle market going forward, we remain confident in our ability to maintain positive quarterly EchoPark Segment adjusted EBITDA* for the remainder of 2024, driving significant year-over-year improvement in the EchoPark Segment to help mitigate the continuing effects of margin normalization in our Franchised Dealerships Segment.”
Heath Byrd, Chief Financial Officer of Sonic Automotive, added, “Our diversified cash flow streams continued to benefit our overall financial position in the first quarter. As of March 31, 2024, we had
First Quarter 2024 Segment Highlights
The financial measures discussed below are results for the first quarter of 2024 with comparisons made to the first quarter of 2023, unless otherwise noted.
-
Franchised Dealerships Segment operating results include:
-
Same store revenues up
1% ; same store gross profit down5% -
Same store retail new vehicle unit sales volume up
5% ; same store retail new vehicle gross profit per unit down32% , to$3,716 -
Same store retail used vehicle unit sales volume up
4% ; same store retail used vehicle gross profit per unit down3% , to$1,585 -
Same store parts, service and collision repair (“Fixed Operations”) gross profit up
6% ; same store customer pay gross profit up6% ; same store warranty gross profit up13% ; same store Fixed Operations gross profit margin up 70 basis points, to50.1% -
Same store finance and insurance ("F&I") gross profit up
3% ; same store F&I gross profit per retail unit of$2,350 1% - On a trailing quarter cost of sales basis, the Franchised Dealerships Segment had 50 days’ supply of new vehicle inventory (including in-transit) and 28 days’ supply of used vehicle inventory
-
Same store revenues up
-
EchoPark Segment operating results include:
-
Revenues of
$559.4 million 14% ; gross profit of$52.6 million 34% -
On a same market basis (which excludes closed stores), revenues were up
11% and gross profit was up79%
-
On a same market basis (which excludes closed stores), revenues were up
-
Retail used vehicle unit sales volume of 17,981, down
10% -
On a same market basis (which excludes closed stores), retail used vehicle unit sales volume was up
13%
-
On a same market basis (which excludes closed stores), retail used vehicle unit sales volume was up
-
Reported segment loss of
$2.9 million $1.3 million $7.3 million -
Reported segment loss includes
$5.9 million $2.2 million $2.1 million -
Excluding closed stores, reported segment income was
$1.3 million $3.5 million $9.4 million
-
Reported segment loss includes
- On a trailing quarter cost of sales basis, the EchoPark Segment had 36 days’ supply of used vehicle inventory
-
Revenues of
-
Powersports Segment operating results include:
-
Revenues of
$27.7 million 19% ; gross profit of$7.8 million 20% -
Segment loss of
$2.3 million $0.8 million - First quarter Powersports Segment adjusted EBITDA* loss reflects the seasonality of this business and was in line with our previously communicated expectation for near breakeven adjusted EBITDA*
-
Revenues of
* Represents a non-GAAP financial measure - please refer to the discussion and reconciliation of non-GAAP financial measures below.
Dividend
Sonic’s Board of Directors approved a quarterly cash dividend of
First Quarter 2024 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 (877) 407-8289 (domestic) or +1 (201) 689-8341 (international) and ask to be connected to the Sonic Automotive First Quarter 2024 Earnings Conference Call. Dial-in access remains available throughout the live call; however, to ensure you are connected for the full call we suggest dialing in at least 10 minutes before the start of the call. A webcast replay will be available following the call for 14 days at ir.sonicautomotive.com.
About Sonic Automotive
Sonic Automotive, Inc., a Fortune 500 company based in
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 and anticipated future EchoPark adjusted EBITDA. There are many factors that affect management’s views about future events and trends of the Company’s business. These factors involve risks and uncertainties that could cause actual results or trends to differ materially from management’s views, including, without limitation, economic conditions in the markets in which we operate, supply chain disruptions and manufacturing delays, labor shortages, the impacts of inflation and increases in interest rates, new and used vehicle industry sales volume, future levels of consumer demand for new and used vehicles, anticipated future growth in each of our operating segments, the success of our operational strategies, the rate and timing of overall economic expansion or contraction, the integration of recent or future acquisitions, and the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and other reports and information filed with the United States Securities and Exchange Commission (the “SEC”). The Company does not undertake any obligation to update forward-looking information, except as required under federal securities laws and the rules and regulations of the SEC.
Non-GAAP Financial Measures
This press release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as adjusted net income, adjusted earnings per diluted share, adjusted SG&A expenses as a percentage of gross profit, adjusted segment income, and adjusted EBITDA. As required by SEC rules, the Company has provided reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures in the schedules included in this press release. The Company believes that these non-GAAP financial measures improve the transparency of the Company’s disclosures and provide a meaningful presentation of the Company’s results.
Sonic Automotive, Inc. |
||||||||||
Results of Operations (Unaudited) |
||||||||||
Results of Operations - Consolidated |
||||||||||
|
Three Months Ended March 31, |
|
Better / (Worse) |
|||||||
|
2024 |
|
2023 |
|
% Change |
|||||
|
(In millions, except per share amounts) |
|
|
|||||||
Revenues: |
|
|
|
|
|
|||||
Retail new vehicles |
$ |
1,455.8 |
|
|
$ |
1,442.8 |
|
|
1 |
% |
Fleet new vehicles |
|
19.6 |
|
|
|
18.8 |
|
|
4 |
% |
Total new vehicles |
|
1,475.4 |
|
|
|
1,461.6 |
|
|
1 |
% |
Used vehicles |
|
1,215.6 |
|
|
|
1,344.9 |
|
|
(10 |
)% |
Wholesale vehicles |
|
77.3 |
|
|
|
85.6 |
|
|
(10 |
)% |
Total vehicles |
|
2,768.3 |
|
|
|
2,892.1 |
|
|
(4 |
)% |
Parts, service and collision repair |
|
446.7 |
|
|
|
430.5 |
|
|
4 |
% |
Finance, insurance and other, net |
|
169.0 |
|
|
|
168.6 |
|
|
— |
% |
Total revenues |
|
3,384.0 |
|
|
|
3,491.2 |
|
|
(3 |
)% |
Cost of sales: |
|
|
|
|
|
|||||
Retail new vehicles |
|
(1,359.4 |
) |
|
|
(1,304.7 |
) |
|
(4 |
)% |
Fleet new vehicles |
|
(18.9 |
) |
|
|
(17.9 |
) |
|
(6 |
)% |
Total new vehicles |
|
(1,378.3 |
) |
|
|
(1,322.6 |
) |
|
(4 |
)% |
Used vehicles |
|
(1,168.6 |
) |
|
|
(1,314.9 |
) |
|
11 |
% |
Wholesale vehicles |
|
(78.1 |
) |
|
|
(82.6 |
) |
|
5 |
% |
Total vehicles |
|
(2,625.0 |
) |
|
|
(2,720.1 |
) |
|
3 |
% |
Parts, service and collision repair |
|
(222.8 |
) |
|
|
(217.6 |
) |
|
(2 |
)% |
Total cost of sales |
|
(2,847.8 |
) |
|
|
(2,937.7 |
) |
|
3 |
% |
Gross profit |
|
536.2 |
|
|
|
553.5 |
|
|
(3 |
)% |
Selling, general and administrative expenses |
|
(392.2 |
) |
|
|
(412.8 |
) |
|
5 |
% |
Impairment charges |
|
(1.0 |
) |
|
|
— |
|
|
(100 |
)% |
Depreciation and amortization |
|
(36.3 |
) |
|
|
(34.3 |
) |
|
(6 |
)% |
Operating income (loss) |
|
106.7 |
|
|
|
106.4 |
|
|
— |
% |
Other income (expense): |
|
|
|
|
|
|||||
Interest expense, floor plan |
|
(20.3 |
) |
|
|
(14.6 |
) |
|
(39 |
)% |
Interest expense, other, net |
|
(29.0 |
) |
|
|
(28.4 |
) |
|
(2 |
)% |
Other income (expense), net |
|
0.1 |
|
|
|
0.2 |
|
|
(50 |
)% |
Total other income (expense) |
|
(49.2 |
) |
|
|
(42.8 |
) |
|
(15 |
)% |
Income (loss) before taxes |
|
57.5 |
|
|
|
63.6 |
|
|
(10 |
)% |
Provision for income taxes - benefit (expense) |
|
(15.5 |
) |
|
|
(15.9 |
) |
|
3 |
% |
Net income (loss) |
$ |
42.0 |
|
|
$ |
47.7 |
|
|
(12 |
)% |
|
|
|
|
|
|
|||||
Basic earnings (loss) per common share |
$ |
1.24 |
|
|
$ |
1.33 |
|
|
(7 |
)% |
Basic weighted-average common shares outstanding |
|
34.0 |
|
|
|
35.9 |
|
|
5 |
% |
|
|
|
|
|
|
|||||
Diluted earnings (loss) per common share |
$ |
1.20 |
|
|
$ |
1.29 |
|
|
(7 |
)% |
Diluted weighted-average common shares outstanding |
|
34.9 |
|
|
|
36.9 |
|
|
5 |
% |
|
|
|
|
|
|
|||||
Dividends declared per common share |
$ |
0.30 |
|
|
$ |
0.28 |
|
|
7 |
% |
Franchised Dealerships Segment - Reported
|
Three Months Ended March 31, |
|
Better / (Worse) |
|||||||
|
2024 |
|
2023 |
|
% Change |
|||||
|
(In millions, except unit and per unit data) |
|||||||||
Revenues: |
|
|
|
|
|
|||||
Retail new vehicles |
$ |
1,439.9 |
|
|
$ |
1,421.0 |
|
|
1 |
% |
Fleet new vehicles |
|
19.6 |
|
|
|
18.8 |
|
|
4 |
% |
Total new vehicles |
|
1,459.5 |
|
|
|
1,439.8 |
|
|
1 |
% |
Used vehicles |
|
729.3 |
|
|
|
767.6 |
|
|
(5 |
)% |
Wholesale vehicles |
|
48.6 |
|
|
|
58.4 |
|
|
(17 |
)% |
Total vehicles |
|
2,237.4 |
|
|
|
2,265.8 |
|
|
(1 |
)% |
Parts, service and collision repair |
|
439.9 |
|
|
|
423.8 |
|
|
4 |
% |
Finance, insurance and other, net |
|
119.6 |
|
|
|
117.1 |
|
|
2 |
% |
Total revenues |
|
2,796.9 |
|
|
|
2,806.7 |
|
|
— |
% |
Gross Profit: |
|
|
|
|
|
|||||
Retail new vehicles |
|
94.1 |
|
|
|
134.0 |
|
|
(30 |
)% |
Fleet new vehicles |
|
0.7 |
|
|
|
0.9 |
|
|
(22 |
)% |
Total new vehicles |
|
94.8 |
|
|
|
134.9 |
|
|
(30 |
)% |
Used vehicles |
|
40.8 |
|
|
|
40.8 |
|
|
— |
% |
Wholesale vehicles |
|
(0.2 |
) |
|
|
1.9 |
|
|
(111 |
)% |
Total vehicles |
|
135.4 |
|
|
|
177.6 |
|
|
(24 |
)% |
Parts, service and collision repair |
|
220.8 |
|
|
|
209.6 |
|
|
5 |
% |
Finance, insurance and other, net |
|
119.6 |
|
|
|
117.1 |
|
|
2 |
% |
Total gross profit |
|
475.8 |
|
|
|
504.3 |
|
|
(6 |
)% |
Selling, general and administrative expenses |
|
(338.5 |
) |
|
|
(331.2 |
) |
|
(2 |
)% |
Impairment charges |
|
(1.0 |
) |
|
|
— |
|
|
(100 |
)% |
Depreciation and amortization |
|
(29.8 |
) |
|
|
(26.5 |
) |
|
(12 |
)% |
Operating income (loss) |
|
106.5 |
|
|
|
146.6 |
|
|
(27 |
)% |
Other income (expense): |
|
|
|
|
|
|||||
Interest expense, floor plan |
|
(16.0 |
) |
|
|
(9.9 |
) |
|
(62 |
)% |
Interest expense, other, net |
|
(27.8 |
) |
|
|
(26.9 |
) |
|
(3 |
)% |
Other income (expense), net |
|
— |
|
|
|
— |
|
|
— |
% |
Total other income (expense) |
|
(43.8 |
) |
|
|
(36.8 |
) |
|
(19 |
)% |
Income (loss) before taxes |
|
62.7 |
|
|
|
109.8 |
|
|
(43 |
)% |
Add: Impairment charges |
|
1.0 |
|
|
|
— |
|
|
100 |
% |
Segment income (loss) |
$ |
63.7 |
|
|
$ |
109.8 |
|
|
(42 |
)% |
|
|
|
|
|
|
|||||
Unit Sales Volume: |
|
|
|
|
|
|||||
Retail new vehicles |
|
25,297 |
|
|
|
24,539 |
|
|
3 |
% |
Fleet new vehicles |
|
379 |
|
|
|
441 |
|
|
(14 |
)% |
Total new vehicles |
|
25,676 |
|
|
|
24,980 |
|
|
3 |
% |
Used vehicles |
|
25,666 |
|
|
|
25,107 |
|
|
2 |
% |
Wholesale vehicles |
|
5,105 |
|
|
|
5,483 |
|
|
(7 |
)% |
Retail new & used vehicles |
|
50,963 |
|
|
|
49,646 |
|
|
3 |
% |
Used-to-New Ratio |
|
1.01 |
|
|
|
1.02 |
|
|
(1 |
)% |
|
|
|
|
|
|
|||||
Gross Profit Per Unit: |
|
|
|
|
|
|||||
Retail new vehicles |
$ |
3,722 |
|
|
$ |
5,463 |
|
|
(32 |
)% |
Fleet new vehicles |
$ |
1,706 |
|
|
$ |
2,020 |
|
|
(16 |
)% |
New vehicles |
$ |
3,692 |
|
|
$ |
5,402 |
|
|
(32 |
)% |
Used vehicles |
$ |
1,592 |
|
|
$ |
1,626 |
|
|
(2 |
)% |
Finance, insurance and other, net |
$ |
2,348 |
|
|
$ |
2,360 |
|
|
(1 |
)% |
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 March 31, |
|
Better / (Worse) |
||||||
|
2024 |
|
2023 |
|
% Change |
||||
|
(In millions, except unit and per unit data) |
||||||||
Revenues: |
|
|
|
|
|
||||
Retail new vehicles |
$ |
1,435.5 |
|
|
$ |
1,398.8 |
|
3 |
% |
Fleet new vehicles |
|
19.6 |
|
|
|
18.9 |
|
4 |
% |
Total new vehicles |
|
1,455.1 |
|
|
|
1,417.7 |
|
3 |
% |
Used vehicles |
|
726.0 |
|
|
|
753.9 |
|
(4 |
)% |
Wholesale vehicles |
|
48.4 |
|
|
|
57.6 |
|
(16 |
)% |
Total vehicles |
|
2,229.5 |
|
|
|
2,229.2 |
|
— |
% |
Parts, service and collision repair |
|
438.6 |
|
|
|
417.8 |
|
5 |
% |
Finance, insurance and other, net |
|
119.3 |
|
|
|
115.3 |
|
3 |
% |
Total revenues |
|
2,787.4 |
|
|
|
2,762.3 |
|
1 |
% |
Gross Profit: |
|
|
|
|
|
||||
Retail new vehicles |
|
93.7 |
|
|
|
132.3 |
|
(29 |
)% |
Fleet new vehicles |
|
0.7 |
|
|
|
0.9 |
|
(22 |
)% |
Total new vehicles |
|
94.4 |
|
|
|
133.2 |
|
(29 |
)% |
Used vehicles |
|
40.5 |
|
|
|
40.1 |
|
1 |
% |
Wholesale vehicles |
|
(0.2 |
) |
|
|
1.8 |
|
(111 |
)% |
Total vehicles |
|
134.7 |
|
|
|
175.1 |
|
(23 |
)% |
Parts, service and collision repair |
|
219.6 |
|
|
|
206.3 |
|
6 |
% |
Finance, insurance and other, net |
|
119.3 |
|
|
|
115.3 |
|
3 |
% |
Total gross profit |
$ |
473.6 |
|
|
$ |
496.7 |
|
(5 |
)% |
|
|
|
|
|
|
||||
Unit Sales Volume: |
|
|
|
|
|
||||
Retail new vehicles |
|
25,225 |
|
|
|
24,053 |
|
5 |
% |
Fleet new vehicles |
|
379 |
|
|
|
441 |
|
(14 |
)% |
Total new vehicles |
|
25,604 |
|
|
|
24,494 |
|
5 |
% |
Used vehicles |
|
25,552 |
|
|
|
24,601 |
|
4 |
% |
Wholesale vehicles |
|
5,094 |
|
|
|
5,389 |
|
(5 |
)% |
Retail new & used vehicles |
|
50,777 |
|
|
|
48,654 |
|
4 |
% |
Used-to-New Ratio |
|
1.01 |
|
|
|
1.02 |
|
(1 |
)% |
|
|
|
|
|
|
||||
Gross Profit Per Unit: |
|
|
|
|
|
||||
Retail new vehicles |
$ |
3,716 |
|
|
$ |
5,499 |
|
(32 |
)% |
Fleet new vehicles |
$ |
1,706 |
|
|
$ |
2,020 |
|
(16 |
)% |
New vehicles |
$ |
3,686 |
|
|
$ |
5,437 |
|
(32 |
)% |
Used vehicles |
$ |
1,585 |
|
|
$ |
1,631 |
|
(3 |
)% |
Finance, insurance and other, net |
$ |
2,350 |
|
|
$ |
2,370 |
|
(1 |
)% |
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 March 31, |
|
Better / (Worse) |
|||||||
|
2024 |
|
2023 |
|
% Change |
|||||
|
(In millions, except unit and per unit data) |
|||||||||
Revenues: |
|
|
|
|
|
|||||
Retail new vehicles |
$ |
— |
|
|
$ |
1.0 |
|
|
(100 |
)% |
Used vehicles |
|
482.9 |
|
|
|
572.5 |
|
|
(16 |
)% |
Wholesale vehicles |
|
28.6 |
|
|
|
27.0 |
|
|
6 |
% |
Total vehicles |
|
511.5 |
|
|
|
600.5 |
|
|
(15 |
)% |
Finance, insurance and other, net |
|
47.9 |
|
|
|
50.0 |
|
|
(4 |
)% |
Total revenues |
|
559.4 |
|
|
|
650.5 |
|
|
(14 |
)% |
Gross Profit: |
|
|
|
|
|
|||||
Retail new vehicles |
|
— |
|
|
|
0.1 |
|
|
(100 |
)% |
Used vehicles |
|
5.3 |
|
|
|
(11.8 |
) |
|
145 |
% |
Wholesale vehicles |
|
(0.6 |
) |
|
|
1.1 |
|
|
(155 |
)% |
Total vehicles |
|
4.7 |
|
|
|
(10.6 |
) |
|
144 |
% |
Finance, insurance and other, net |
|
47.9 |
|
|
|
50.0 |
|
|
(4 |
)% |
Total gross profit |
|
52.6 |
|
|
|
39.4 |
|
|
34 |
% |
Selling, general and administrative expenses |
|
(45.6 |
) |
|
|
(73.8 |
) |
|
38 |
% |
Impairment charges |
|
— |
|
|
|
— |
|
|
— |
% |
Depreciation and amortization |
|
(5.5 |
) |
|
|
(7.0 |
) |
|
21 |
% |
Operating income (loss) |
|
1.5 |
|
|
|
(41.4 |
) |
|
104 |
% |
Other income (expense): |
|
|
|
|
|
|||||
Interest expense, floor plan |
|
(3.8 |
) |
|
|
(4.6 |
) |
|
17 |
% |
Interest expense, other, net |
|
(0.7 |
) |
|
|
(0.9 |
) |
|
22 |
% |
Other income (expense), net |
|
0.1 |
|
|
|
0.1 |
|
|
— |
% |
Total other income (expense) |
|
(4.4 |
) |
|
|
(5.4 |
) |
|
19 |
% |
Income (loss) before taxes |
|
(2.9 |
) |
|
|
(46.8 |
) |
|
94 |
% |
Add: Impairment charges |
|
— |
|
|
|
— |
|
|
— |
% |
Segment income (loss) |
$ |
(2.9 |
) |
|
$ |
(46.8 |
) |
|
94 |
% |
|
|
|
|
|
|
|||||
Unit Sales Volume: |
|
|
|
|
|
|||||
Retail new vehicles |
|
— |
|
|
|
11 |
|
|
(100 |
)% |
Used vehicles |
|
17,981 |
|
|
|
19,980 |
|
|
(10 |
)% |
Wholesale vehicles |
|
2,994 |
|
|
|
2,916 |
|
|
3 |
% |
|
|
|
|
|
|
|||||
Gross Profit Per Unit: |
|
|
|
|
|
|||||
Total used vehicle and F&I |
$ |
2,955 |
|
|
$ |
1,906 |
|
|
55 |
% |
EchoPark Segment - Same Market
|
Three Months Ended March 31, |
|
Better / (Worse) |
||||||
|
2024 |
|
2023 |
|
% Change |
||||
|
(In millions, except unit and per unit data) |
||||||||
Revenues: |
|
|
|
|
|
||||
Used vehicles |
$ |
473.2 |
|
$ |
433.7 |
|
|
9 |
% |
Wholesale vehicles |
|
25.5 |
|
|
17.9 |
|
|
42 |
% |
Total vehicles |
|
498.7 |
|
|
451.6 |
|
|
10 |
% |
Finance, insurance and other, net |
|
47.5 |
|
|
38.3 |
|
|
24 |
% |
Total revenues |
|
546.2 |
|
|
489.9 |
|
|
11 |
% |
Gross Profit: |
|
|
|
|
|
||||
Used vehicles |
|
5.6 |
|
|
(9.8 |
) |
|
157 |
% |
Wholesale vehicles |
|
0.1 |
|
|
1.2 |
|
|
(92 |
)% |
Total vehicles |
|
5.7 |
|
|
(8.6 |
) |
|
166 |
% |
Finance, insurance and other, net |
|
47.5 |
|
|
38.3 |
|
|
24 |
% |
Total gross profit |
$ |
53.2 |
|
$ |
29.7 |
|
|
79 |
% |
|
|
|
|
|
|
||||
Unit Sales Volume: |
|
|
|
|
|
||||
Used vehicles |
|
17,618 |
|
|
15,551 |
|
|
13 |
% |
Wholesale vehicles |
|
2,785 |
|
|
2,119 |
|
|
31 |
% |
|
|
|
|
|
|
||||
Gross Profit Per Unit: |
|
|
|
|
|
||||
Total used vehicle and F&I |
$ |
3,018 |
|
$ |
1,833 |
|
|
65 |
% |
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 March 31, |
|
Better / (Worse) |
|||||||
|
2024 |
|
2023 |
|
% Change |
|||||
|
(In millions, except unit and per unit data) |
|||||||||
Revenues: |
|
|
|
|
|
|||||
Retail new vehicles |
$ |
15.9 |
|
|
$ |
20.8 |
|
|
(24 |
)% |
Used vehicles |
|
3.4 |
|
|
|
4.8 |
|
|
(29 |
)% |
Wholesale vehicles |
|
0.1 |
|
|
|
0.2 |
|
|
(50 |
)% |
Total vehicles |
|
19.4 |
|
|
|
25.8 |
|
|
(25 |
)% |
Parts, service and collision repair |
|
6.8 |
|
|
|
6.7 |
|
|
1 |
% |
Finance, insurance and other, net |
|
1.5 |
|
|
|
1.5 |
|
|
— |
% |
Total revenues |
|
27.7 |
|
|
|
34.0 |
|
|
(19 |
)% |
Gross Profit: |
|
|
|
|
|
|||||
Retail new vehicles |
|
2.3 |
|
|
|
4.0 |
|
|
(43 |
)% |
Used vehicles |
|
0.9 |
|
|
|
1.0 |
|
|
(10 |
)% |
Wholesale vehicles |
|
— |
|
|
|
— |
|
|
— |
% |
Total vehicles |
|
3.2 |
|
|
|
5.0 |
|
|
(36 |
)% |
Parts, service and collision repair |
|
3.1 |
|
|
|
3.3 |
|
|
(6 |
)% |
Finance, insurance and other, net |
|
1.5 |
|
|
|
1.5 |
|
|
— |
% |
Total gross profit |
|
7.8 |
|
|
|
9.8 |
|
|
(20 |
)% |
Selling, general and administrative expenses |
|
(8.1 |
) |
|
|
(7.8 |
) |
|
(4 |
)% |
Depreciation and amortization |
|
(1.0 |
) |
|
|
(0.8 |
) |
|
(25 |
)% |
Operating income (loss) |
|
(1.3 |
) |
|
|
1.2 |
|
|
(208 |
)% |
Other income (expense): |
|
|
|
|
|
|||||
Interest expense, floor plan |
|
(0.5 |
) |
|
|
(0.1 |
) |
|
(400 |
)% |
Interest expense, other, net |
|
(0.5 |
) |
|
|
(0.6 |
) |
|
17 |
% |
Other income (expense), net |
|
— |
|
|
|
0.1 |
|
|
(100 |
)% |
Total other income (expense) |
|
(1.0 |
) |
|
|
(0.6 |
) |
|
(67 |
)% |
Income (loss) before taxes |
|
(2.3 |
) |
|
|
0.6 |
|
|
(483 |
)% |
Add: Impairment charges |
|
— |
|
|
|
— |
|
|
— |
% |
Segment income (loss) |
$ |
(2.3 |
) |
|
$ |
0.6 |
|
|
(483 |
)% |
|
|
|
|
|
|
|||||
Unit Sales Volume: |
|
|
|
|
|
|||||
Retail new vehicles |
|
845 |
|
|
|
1,107 |
|
|
(24 |
)% |
Used vehicles |
|
409 |
|
|
|
444 |
|
|
(8 |
)% |
Wholesale vehicles |
|
13 |
|
|
|
7 |
|
|
86 |
% |
|
|
|
|
|
|
|||||
Gross Profit Per Unit: |
|
|
|
|
|
|||||
Retail new vehicles |
$ |
2,676 |
|
|
$ |
3,573 |
|
|
(25 |
)% |
Used vehicles |
$ |
2,185 |
|
|
$ |
2,328 |
|
|
(6 |
)% |
Finance, insurance and other, net |
$ |
1,197 |
|
|
$ |
980 |
|
|
22 |
% |
Powersports Segment - Same Store
|
Three Months Ended March 31, |
|
Better / (Worse) |
||||||
|
2024 |
|
2023 |
|
% Change |
||||
|
(In millions, except unit and per unit data) |
||||||||
Revenues: |
|
|
|
|
|
||||
Retail new vehicles |
$ |
15.3 |
|
$ |
20.6 |
|
|
(26 |
)% |
Used vehicles |
|
2.7 |
|
|
4.3 |
|
|
(37 |
)% |
Wholesale vehicles |
|
0.3 |
|
|
0.1 |
|
|
200 |
% |
Total vehicles |
|
18.3 |
|
|
25.0 |
|
|
(27 |
)% |
Parts, service and collision repair |
|
6.1 |
|
|
6.4 |
|
|
(5 |
)% |
Finance, insurance and other, net |
|
1.4 |
|
|
1.5 |
|
|
(7 |
)% |
Total revenues |
|
25.8 |
|
|
32.9 |
|
|
(22 |
)% |
Gross Profit: |
|
|
|
|
|
||||
Retail new vehicles |
|
2.1 |
|
|
3.9 |
|
|
(46 |
)% |
Used vehicles |
|
0.7 |
|
|
0.9 |
|
|
(22 |
)% |
Wholesale vehicles |
|
0.1 |
|
|
(0.1 |
) |
|
200 |
% |
Total vehicles |
|
2.9 |
|
|
4.7 |
|
|
(38 |
)% |
Parts, service and collision repair |
|
2.8 |
|
|
3.2 |
|
|
(13 |
)% |
Finance, insurance and other, net |
|
1.4 |
|
|
1.5 |
|
|
(7 |
)% |
Total gross profit |
$ |
7.1 |
|
$ |
9.4 |
|
|
(24 |
)% |
|
|
|
|
|
|
||||
Unit Sales Volume: |
|
|
|
|
|
||||
Retail new vehicles |
|
828 |
|
|
1,100 |
|
|
(25 |
)% |
Used vehicles |
|
336 |
|
|
401 |
|
|
(16 |
)% |
Wholesale vehicles |
|
10 |
|
|
6 |
|
|
67 |
% |
Retail new & used vehicles |
|
1,164 |
|
|
1,501 |
|
|
(22 |
)% |
Used-to-New Ratio |
|
0.41 |
|
|
0.36 |
|
|
14 |
% |
|
|
|
|
|
|
||||
Gross Profit Per Unit: |
|
|
|
|
|
||||
Retail new vehicles |
$ |
2,553 |
|
$ |
3,549 |
|
|
(28 |
)% |
Used vehicles |
$ |
2,202 |
|
$ |
2,274 |
|
|
(3 |
)% |
Finance, insurance and other, net |
$ |
1,225 |
|
$ |
981 |
|
|
25 |
% |
Note: All currently operating powersports stores are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition.
Non-GAAP Reconciliation - Consolidated - SG&A Expenses
|
Three Months Ended March 31, |
|
Better / (Worse) |
||||||||||
|
2024 |
|
2023 |
|
Change |
|
% Change |
||||||
|
(In millions) |
||||||||||||
Reported: |
|
|
|
|
|
|
|
||||||
Compensation |
$ |
247.3 |
|
|
$ |
258.8 |
|
|
$ |
11.5 |
|
4 |
% |
Advertising |
|
22.3 |
|
|
|
26.1 |
|
|
|
3.8 |
|
15 |
% |
Rent |
|
9.3 |
|
|
|
11.3 |
|
|
|
2.0 |
|
18 |
% |
Other |
|
113.3 |
|
|
|
116.6 |
|
|
|
3.3 |
|
3 |
% |
Total SG&A expenses |
$ |
392.2 |
|
|
$ |
412.8 |
|
|
$ |
20.6 |
|
5 |
% |
Adjustments: |
|
|
|
|
|
|
|
||||||
Closed store accrued expenses |
$ |
(2.1 |
) |
|
$ |
— |
|
|
|
|
|
||
Severance and long-term compensation charges |
|
(4.3 |
) |
|
|
(2.0 |
) |
|
|
|
|
||
Total SG&A adjustments |
$ |
(6.4 |
) |
|
$ |
(2.0 |
) |
|
|
|
|
||
Adjusted: |
|
|
|
|
|
|
|
||||||
Total adjusted SG&A expenses |
$ |
385.8 |
|
|
$ |
410.8 |
|
|
$ |
25.0 |
|
6 |
% |
|
|
|
|
|
|
|
|
||||||
Reported: |
|
|
|
|
|
|
|
||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
||||||
Compensation |
|
46.1 |
% |
|
|
46.7 |
% |
|
|
60 |
|
bps |
|
Advertising |
|
4.2 |
% |
|
|
4.7 |
% |
|
|
50 |
|
bps |
|
Rent |
|
1.7 |
% |
|
|
2.0 |
% |
|
|
30 |
|
bps |
|
Other |
|
21.1 |
% |
|
|
21.2 |
% |
|
|
10 |
|
bps |
|
Total SG&A expenses as a % of gross profit |
|
73.1 |
% |
|
|
74.6 |
% |
|
|
150 |
|
bps |
|
Adjustments: |
|
|
|
|
|
|
|||||||
Closed store accrued expenses |
|
(0.4 |
)% |
|
|
— |
% |
|
|
|
|||
Severance and long-term compensation charges |
|
(0.7 |
)% |
|
|
(0.4 |
)% |
|
|
|
|||
Total effect of adjustments |
|
(1.1 |
)% |
|
|
(0.4 |
)% |
|
|
|
|||
Adjusted: |
|
|
|
|
|
|
|||||||
Total adjusted SG&A expenses as a % of gross profit |
|
72.0 |
% |
|
|
74.2 |
% |
|
|
220 |
|
bps |
|
Non-GAAP Reconciliation - Franchised Dealerships Segment - SG&A Expenses
|
|
|
|
|
|
|
|
|||||||
|
Three Months Ended March 31, |
|
Better / (Worse) |
|||||||||||
|
2024 |
|
2023 |
|
Change |
|
% Change |
|||||||
|
(In millions) |
|||||||||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Compensation |
$ |
216.5 |
|
|
$ |
213.8 |
|
|
$ |
(2.7 |
) |
|
(1 |
)% |
Advertising |
|
15.3 |
|
|
|
9.9 |
|
|
|
(5.4 |
) |
|
(55 |
)% |
Rent |
|
10.1 |
|
|
|
10.2 |
|
|
|
0.1 |
|
|
1 |
% |
Other |
|
96.6 |
|
|
|
97.3 |
|
|
|
0.7 |
|
|
1 |
% |
Total SG&A expenses |
$ |
338.5 |
|
|
$ |
331.2 |
|
|
$ |
(7.3 |
) |
|
(2 |
)% |
Adjustments: |
|
|
|
|
|
|
|
|||||||
Long-term compensation charges |
$ |
(2.2 |
) |
|
$ |
— |
|
|
|
|
|
|||
Total SG&A adjustments |
$ |
(2.2 |
) |
|
$ |
— |
|
|
|
|
|
|||
Adjusted: |
|
|
|
|
|
|
|
|||||||
Total adjusted SG&A expenses |
$ |
336.3 |
|
|
$ |
331.2 |
|
|
$ |
(5.1 |
) |
|
(2 |
)% |
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
|||||||
Compensation |
|
45.5 |
% |
|
|
42.4 |
% |
|
|
(310 |
) |
bps |
||
Advertising |
|
3.2 |
% |
|
|
2.0 |
% |
|
|
(120 |
) |
bps |
||
Rent |
|
2.1 |
% |
|
|
2.0 |
% |
|
|
(10 |
) |
bps |
||
Other |
|
20.3 |
% |
|
|
19.3 |
% |
|
|
(100 |
) |
bps |
||
Total SG&A expenses as a % of gross profit |
|
71.1 |
% |
|
|
65.7 |
% |
|
|
(540 |
) |
bps |
||
Adjustments: |
|
|
|
|
|
|
||||||||
Long-term compensation charges |
|
(0.4 |
)% |
|
|
— |
% |
|
|
|
||||
Total effect of adjustments |
|
(0.4 |
)% |
|
|
— |
% |
|
|
|
||||
Adjusted: |
|
|
|
|
|
|
||||||||
Total adjusted SG&A expenses as a % of gross profit |
|
70.7 |
% |
|
|
65.7 |
% |
|
|
(500 |
) |
bps |
||
Non-GAAP Reconciliation - EchoPark Segment - SG&A Expenses
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended March 31, |
|
Better / (Worse) |
||||||||||
|
2024 |
|
2023 |
|
Change |
|
% Change |
||||||
|
(In millions) |
||||||||||||
Reported: |
|
|
|
|
|
|
|
||||||
Compensation |
$ |
25.2 |
|
|
$ |
39.7 |
|
|
$ |
14.5 |
|
37 |
% |
Advertising |
|
6.6 |
|
|
|
15.8 |
|
|
|
9.2 |
|
58 |
% |
Rent |
|
(0.8 |
) |
|
|
1.1 |
|
|
|
1.9 |
|
173 |
% |
Other |
|
14.6 |
|
|
|
17.2 |
|
|
|
2.6 |
|
15 |
% |
Total SG&A expenses |
$ |
45.6 |
|
|
$ |
73.8 |
|
|
$ |
28.2 |
|
38 |
% |
Adjustments: |
|
|
|
|
|
|
|
||||||
Closed store accrued expenses |
$ |
(2.1 |
) |
|
$ |
— |
|
|
|
|
|
||
Severance and long-term compensation charges |
|
(2.1 |
) |
|
|
(2.0 |
) |
|
|
|
|
||
Total SG&A adjustments |
$ |
(4.2 |
) |
|
$ |
(2.0 |
) |
|
|
|
|
||
Adjusted: |
|
|
|
|
|
|
|
||||||
Total adjusted SG&A expenses |
$ |
41.4 |
|
|
$ |
71.8 |
|
|
$ |
30.4 |
|
42 |
% |
|
|
|
|
|
|
|
|
||||||
Reported: |
|
|
|
|
|
|
|
||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
||||||
Compensation |
|
47.8 |
% |
|
|
100.6 |
% |
|
|
5,280 |
|
bps |
|
Advertising |
|
12.6 |
% |
|
|
40.0 |
% |
|
|
2,740 |
|
bps |
|
Rent |
|
(1.4 |
)% |
|
|
2.7 |
% |
|
|
410 |
|
bps |
|
Other |
|
27.6 |
% |
|
|
43.9 |
% |
|
|
1,630 |
|
bps |
|
Total SG&A expenses as a % of gross profit |
|
86.6 |
% |
|
|
187.2 |
% |
|
|
10,060 |
|
bps |
|
Adjustments: |
|
|
|
|
|
|
|||||||
Closed store accrued expenses |
|
(4.0 |
)% |
|
|
— |
% |
|
|
|
|||
Severance and long-term compensation charges |
|
(4.0 |
)% |
|
|
(5.1 |
)% |
|
|
|
|||
Total effect of adjustments |
|
(8.0 |
)% |
|
|
(5.1 |
)% |
|
|
|
|||
Adjusted: |
|
|
|
|
|
|
|||||||
Total adjusted SG&A expenses as a % of gross profit |
|
78.6 |
% |
|
|
182.1 |
% |
|
|
10,350 |
|
bps |
|
Non-GAAP Reconciliation - Powersports Segment - SG&A Expenses
|
|
|
|
|
|
|
|
|||||||
|
Three Months Ended March 31, |
|
Better / (Worse) |
|||||||||||
|
2024 |
|
2023 |
|
Change |
|
% Change |
|||||||
|
(In millions) |
|||||||||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Compensation |
$ |
5.6 |
|
|
$ |
5.3 |
|
|
$ |
(0.3 |
) |
|
(6 |
)% |
Advertising |
|
0.4 |
|
|
|
0.4 |
|
|
|
— |
|
|
— |
% |
Rent |
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
% |
Other |
|
2.1 |
|
|
|
2.1 |
|
|
|
— |
|
|
— |
% |
Total SG&A expenses |
$ |
8.1 |
|
|
$ |
7.8 |
|
|
$ |
(0.3 |
) |
|
(4 |
)% |
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
|||||||
Compensation |
|
72.7 |
% |
|
|
53.9 |
% |
|
|
(1,880 |
) |
|
bps |
|
Advertising |
|
5.1 |
% |
|
|
4.2 |
% |
|
|
(90 |
) |
|
bps |
|
Rent |
|
0.4 |
% |
|
|
0.4 |
% |
|
|
— |
|
|
bps |
|
Other |
|
26.6 |
% |
|
|
21.6 |
% |
|
|
(500 |
) |
|
bps |
|
Total SG&A expenses as a % of gross profit |
|
104.8 |
% |
|
|
80.1 |
% |
|
|
(2,470 |
) |
|
bps |
|
Non-GAAP Reconciliation - Franchised Dealerships Segment - Income (Loss) Before Taxes and Segment Income (Loss)
|
Three Months Ended March 31, |
|||||||
|
2024 |
|
2023 |
|
% Change |
|||
|
(In millions) |
|||||||
Reported: |
|
|
|
|
|
|||
Income (loss) before taxes |
$ |
62.7 |
|
$ |
109.8 |
|
(43 |
)% |
Add: Impairment charges |
|
1.0 |
|
|
— |
|
|
|
Segment income (loss) |
$ |
63.7 |
|
$ |
109.8 |
|
(42 |
)% |
|
|
|
|
|
|
|||
Adjustments: |
|
|
|
|
|
|||
Long-term compensation charges |
$ |
2.2 |
|
$ |
— |
|
|
|
Total pre-tax adjustments |
$ |
2.2 |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|||
Adjusted: |
|
|
|
|
|
|||
Segment income (loss) |
$ |
65.9 |
|
$ |
109.8 |
|
(40 |
)% |
Non-GAAP Reconciliation - EchoPark Segment - Income (Loss) Before Taxes and Segment Income (Loss)
|
Three Months Ended March 31, |
|||||||||
|
2024 |
|
2023 |
|
% Change |
|||||
|
(In millions) |
|||||||||
Reported: |
|
|
|
|
|
|||||
Income (loss) before taxes |
$ |
(2.9 |
) |
|
$ |
(46.8 |
) |
|
94 |
% |
Add: Impairment charges |
|
— |
|
|
|
— |
|
|
|
|
Segment income (loss) |
$ |
(2.9 |
) |
|
$ |
(46.8 |
) |
|
94 |
% |
|
|
|
|
|
|
|||||
Adjustments: |
|
|
|
|
|
|||||
Closed store accrued expenses |
$ |
2.1 |
|
|
$ |
— |
|
|
|
|
Severance and long-term compensation charges |
|
2.1 |
|
|
|
2.0 |
|
|
|
|
Total pre-tax adjustments |
$ |
4.2 |
|
|
$ |
2.0 |
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted: |
|
|
|
|
|
|||||
Segment income (loss) |
$ |
1.3 |
|
|
$ |
(44.8 |
) |
|
103 |
% |
Non-GAAP Reconciliation - Powersports Segment - Income (Loss) Before Taxes and Segment Income (Loss)
|
Three Months Ended March 31, |
||||||||
|
2024 |
|
2023 |
|
% Change |
||||
|
(In millions) |
||||||||
Reported: |
|
|
|
|
|
||||
Income (loss) before taxes |
$ |
(2.3 |
) |
|
$ |
0.6 |
|
(483 |
)% |
Add: Impairment charges |
|
— |
|
|
|
— |
|
|
|
Segment income (loss) |
$ |
(2.3 |
) |
|
$ |
0.6 |
|
(483 |
)% |
Non-GAAP Reconciliation - Consolidated - Net Income (Loss) and Diluted Earnings (Loss) Per Share
|
Three Months Ended March 31, 2024 |
|
Three Months Ended March 31, 2023 |
||||||||||||||
|
Weighted-
|
|
Net Income
|
|
Per
|
|
Weighted-
|
|
Net Income
|
|
Per
|
||||||
|
(In millions, except per share amounts) |
||||||||||||||||
Reported net income (loss), diluted shares, and diluted earnings (loss) per share |
34.9 |
|
$ |
42.0 |
|
|
$ |
1.20 |
|
36.9 |
|
$ |
47.7 |
|
|
$ |
1.29 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Closed store accrued expenses |
|
|
$ |
2.1 |
|
|
|
|
|
|
$ |
— |
|
|
|
||
Impairment charges |
|
|
|
1.0 |
|
|
|
|
|
|
|
— |
|
|
|
||
Severance and long-term compensation charges |
|
|
|
4.3 |
|
|
|
|
|
|
|
2.0 |
|
|
|
||
Total pre-tax items of interest |
|
|
$ |
7.4 |
|
|
|
|
|
|
$ |
2.0 |
|
|
|
||
Tax effect of above items |
|
|
|
(1.9 |
) |
|
|
|
|
|
|
(0.5 |
) |
|
|
||
Adjusted net income (loss), diluted shares, and diluted earnings (loss) per share |
34.9 |
|
$ |
47.5 |
|
|
$ |
1.36 |
|
36.9 |
|
$ |
49.2 |
|
|
$ |
1.33 |
Non-GAAP Reconciliation - Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Three Months Ended March 31, 2024 |
|
Three Months Ended March 31, 2023 |
|||||||||||||||||||||||
|
Franchised
|
|
EchoPark
|
|
Powersports
|
|
Total |
|
Franchised
|
|
EchoPark
|
|
Powersports
|
|
Total |
|||||||||||
|
(In millions) |
|||||||||||||||||||||||||
Net income (loss) |
|
|
|
|
|
|
$ |
42.0 |
|
|
|
|
|
|
|
$ |
47.7 |
|||||||||
Provision for income taxes |
|
|
|
|
|
|
|
15.5 |
|
|
|
|
|
|
|
|
15.9 |
|||||||||
Income (loss) before taxes |
$ |
62.7 |
|
$ |
(2.9 |
) |
|
$ |
(2.3 |
) |
|
$ |
57.5 |
|
$ |
109.8 |
|
$ |
(46.8 |
) |
|
$ |
0.6 |
|
$ |
63.6 |
Non-floor plan interest (1) |
|
26.3 |
|
|
0.6 |
|
|
|
0.5 |
|
|
|
27.4 |
|
|
25.4 |
|
|
0.9 |
|
|
|
0.6 |
|
|
26.9 |
Depreciation and amortization (2) |
|
31.5 |
|
|
5.4 |
|
|
|
1.0 |
|
|
|
37.9 |
|
|
28.2 |
|
|
7.0 |
|
|
|
0.7 |
|
|
35.9 |
Stock-based compensation expense |
|
4.4 |
|
|
— |
|
|
|
— |
|
|
|
4.4 |
|
|
5.0 |
|
|
— |
|
|
|
— |
|
|
5.0 |
Impairment charges |
|
1.0 |
|
|
— |
|
|
|
— |
|
|
|
1.0 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
Severance and long-term compensation charges |
|
2.2 |
|
|
2.1 |
|
|
|
— |
|
|
|
4.3 |
|
|
— |
|
|
2.0 |
|
|
|
— |
|
|
2.0 |
Closed store accrued expenses |
$ |
— |
|
$ |
2.1 |
|
|
$ |
— |
|
|
$ |
2.1 |
|
$ |
— |
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
Adjusted EBITDA |
$ |
128.1 |
|
$ |
7.3 |
|
|
$ |
(0.8 |
) |
|
$ |
134.6 |
|
$ |
168.4 |
|
$ |
(36.9 |
) |
|
$ |
1.9 |
|
$ |
133.4 |
(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. |
Non-GAAP Reconciliation - EchoPark Segment Operations and Closed Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Three Months Ended March 31, 2024 |
|
Three Months Ended March 31, 2023 |
|
Better / (Worse) % Change |
||||||||||||||||||||||||||
|
EchoPark
|
|
Closed
|
|
Total
|
|
EchoPark
|
|
Closed
|
|
Total
|
|
EchoPark
|
|
Closed
|
|
Total
|
||||||||||||||
|
(In millions, except unit and per unit data) |
|
|
|
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total revenues |
$ |
546.2 |
|
$ |
13.2 |
|
|
$ |
559.4 |
|
|
$ |
489.9 |
|
|
$ |
160.6 |
|
|
$ |
650.5 |
|
|
11 |
% |
|
(92 |
)% |
|
(14 |
)% |
Total gross profit |
$ |
53.2 |
|
$ |
(0.6 |
) |
|
$ |
52.6 |
|
|
$ |
29.7 |
|
|
$ |
9.7 |
|
|
$ |
39.4 |
|
|
79 |
% |
|
(106 |
)% |
|
34 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Income (loss) before taxes |
$ |
2.9 |
|
$ |
(5.8 |
) |
|
$ |
(2.9 |
) |
|
$ |
(28.0 |
) |
|
$ |
(18.8 |
) |
|
$ |
(46.8 |
) |
|
110 |
% |
|
69 |
% |
|
94 |
% |
Non-floor plan interest (1) |
|
0.6 |
|
|
— |
|
|
|
0.6 |
|
|
|
0.5 |
|
|
|
0.4 |
|
|
|
0.9 |
|
|
NM |
|
|
NM |
|
|
NM |
|
Depreciation and amortization (2) |
|
5.4 |
|
|
— |
|
|
|
5.4 |
|
|
|
5.3 |
|
|
|
1.7 |
|
|
|
7.0 |
|
|
NM |
|
|
NM |
|
|
NM |
|
Severance and long-term compensation charges |
|
0.5 |
|
|
1.6 |
|
|
|
2.1 |
|
|
|
— |
|
|
|
2.0 |
|
|
|
2.0 |
|
|
NM |
|
|
NM |
|
|
NM |
|
Closed store accrued expenses |
|
— |
|
|
2.1 |
|
|
|
2.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
NM |
|
|
NM |
|
|
NM |
|
Adjusted EBITDA |
$ |
9.4 |
|
$ |
(2.1 |
) |
|
$ |
7.3 |
|
|
$ |
(22.2 |
) |
|
$ |
(14.7 |
) |
|
$ |
(36.9 |
) |
|
142 |
% |
|
86 |
% |
|
120 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Used vehicle unit sales volume |
|
17,618 |
|
|
363 |
|
|
|
17,981 |
|
|
|
15,551 |
|
|
|
4,429 |
|
|
|
19,980 |
|
|
13 |
% |
|
(92 |
)% |
|
(10 |
)% |
Total used vehicle and F&I gross profit per unit |
$ |
3,018 |
|
$ |
314 |
|
|
$ |
2,955 |
|
|
$ |
1,833 |
|
|
$ |
2,290 |
|
|
$ |
1,906 |
|
|
65 |
% |
|
(86 |
)% |
|
55 |
% |
NM = Not Meaningful
(1) |
Includes interest expense, other, net in the accompanying consolidated statements of operations, net of any amortization of debt issuance costs or net debt discount/premium included in (2) below. |
(2) |
Includes the following line items from the accompanying consolidated statements of cash flows: depreciation and amortization of property and equipment; debt issuance cost amortization; and debt discount amortization, net of premium amortization. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240425129250/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.
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