Sonic Automotive Reports Second Quarter Financial Results
Sonic Automotive reported record quarterly revenues of $3.7 billion for Q2 2022, a 9% increase year-over-year, and a gross profit of $588.8 million, up 15%. Net income from continuing operations was $94.8 million, equating to $2.34 per diluted share. The Board of Directors authorized a $500 million increase in share repurchase, totaling $633.1 million. Challenges included a 33% decline in new vehicle sales volume, though EchoPark revenues rose 12%. A quarterly dividend of $0.25 per share was approved.
- Record quarterly revenues of $3.7 billion, up 9% year-over-year.
- All-time record gross profit of $588.8 million, a 15% increase.
- Increased share repurchase authorization by $500 million.
- Strong finance and insurance gross profit per retail unit at $2,503, up 13%.
- Same store revenues down 12% and same store retail new vehicle unit sales volume down 33%.
- EchoPark pre-tax loss of $34.9 million, impacting overall profitability.
- Adjusted revenue growth projections for EchoPark pushed back beyond 2025.
All-Time Record Quarterly Revenues and Gross Profit
Board of Directors Increases Share Repurchase Authorization by
Key Second Quarter 2022 Highlights
-
All-time record quarterly revenues of
$3.7 billion 9% year-over-year, all-time record quarterly gross profit of$588.8 million 15% year-over-year -
Reported net income from continuing operations of
$94.8 million $2.34 -
Excluding one-time charges, adjusted net income from continuing operations* of
$99.2 million $2.45 -
Reported selling, general and administrative (“SG&A”) expenses as a percentage of gross profit of
68.4% (60.7% on a Franchised Dealerships Segment basis, an increase of 260 basis points year-over-year) -
Excluding one-time charges, adjusted SG&A expenses as a percentage of gross profit* of
67.7% (59.9% on a Franchised Dealerships Segment basis, an increase of 180 basis points year-over-year) -
All-time record quarterly total Finance & Insurance (“F&I”) gross profit per retail unit of
$2,503 13% year-over-year -
All-time record quarterly EchoPark revenues of
$665.6 million 12% year-over-year -
During the second quarter of 2022, Sonic repurchased approximately 1.4 million shares of its Class A Common Stock for an aggregate purchase price of approximately
$59.4 million -
Sonic’s Board of Directors increased the Company’s share repurchase authorization by
$500.0 million $633.1 million
* Please refer to the discussion and reconciliation of Non-GAAP Financial Measures below.
Commentary
Second Quarter 2022 Segment Highlights
The financial measures discussed below are results for the second quarter of 2022 with comparisons made to the second quarter of 2021, unless otherwise noted.
-
Franchised Dealerships Segment operating results include:
-
Same store revenues down
12% , same store gross profit down2% -
Same store retail new vehicle unit sales volume down
33% ; same store retail new vehicle gross profit per unit up77% , to$6,905 -
Same store retail used vehicle unit sales volume down
17% ; same store retail used vehicle gross profit per unit down15% , to$1,622 -
Same store parts, service and collision repair gross profit up
4% ; same store customer pay gross profit up11% ; same store warranty gross profit down10% ; same store gross margin down 60 basis points, to50.0% -
Same store F&I gross profit down
14% ; all-time record quarterly reported Franchised Dealerships Segment F&I gross profit per retail unit of$2,472 17% - On a trailing quarter cost of sales basis, Franchised Dealerships Segment new vehicle inventory had approximately 18 days’ supply, and Franchised Dealerships Segment used vehicle inventory had approximately 31 days’ supply
-
Same store revenues down
-
EchoPark Segment operating results include:
-
All-time record quarterly EchoPark revenues of
$665.6 million 12% year-over-year, all-time record quarterly EchoPark gross profit of$49.5 million 37% year-over-year -
EchoPark retail used vehicle unit sales volume of 16,608, down
22% year-over-year -
EchoPark retail used vehicle unit sales volume was comprised of
91% 1-4-year old vehicles and9% 5-plus-year old vehicles -
EchoPark market share was
2.1% of the 1-4-year old vehicle segment in our current markets (on a same market basis, EchoPark share was3.0% of the 1-4-year old vehicle segment) -
EchoPark pre-tax loss of
$34.9 million $27.9 million $10.3 million $9.7 million - On a trailing quarter cost of sales basis, EchoPark Segment used vehicle inventory had approximately 53 days’ supply (including the effect of building up inventory for newly opened and future locations)
-
All-time record quarterly EchoPark revenues of
Strategic Update
In
Dividend
Sonic’s Board of Directors approved a quarterly cash dividend of
Second Quarter 2022 Earnings Conference Call
Senior management will hold a conference call today at
Investor presentation and earnings press release materials will be accessible beginning prior to the conference call on the Company’s website at ir.sonicautomotive.com.
To access the live webcast of the conference call, please go to ir.sonicautomotive.com.
For telephone access to this conference call, please register in advance using this link: https://ige.netroadshow.com/registration/q4inc/11305/sonic-automotive-second-quarter-2022-earnings-conference-call/
After registering, you will receive a confirmation that includes dial-in numbers and a unique conference call access code and PIN for entry. Registration remains available through the live call, however, to ensure you are connected for the full call we suggest registering at least 10 minutes before the start of the call.
A conference call replay will be available beginning two hours following the call for 14 days at ir.sonicautomotive.com.
About
About
Forward-Looking Statements
Included herein are forward-looking statements, including statements regarding EchoPark's omnichannel strategy and future
Non-GAAP Financial Measures
This press release and the attached financial tables contain certain non-GAAP financial measures as defined under
Results of Operations (Unaudited) |
|||||||||||||||||||||
Results of Operations - Consolidated |
|||||||||||||||||||||
|
Three Months Ended |
|
Better / (Worse) |
|
Six Months Ended |
|
Better / (Worse) |
||||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
% Change |
|
|
2022 |
|
|
|
2021 |
|
|
% Change |
||
|
(In millions, except per share amounts) |
|
|
||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
$ |
1,344.3 |
|
|
$ |
1,453.2 |
|
|
(7 |
) % |
|
$ |
2,695.6 |
|
|
$ |
2,587.2 |
|
|
4 |
% |
Fleet new vehicles |
|
166.4 |
|
|
|
9.7 |
|
|
NM |
|
|
|
315.0 |
|
|
|
32.0 |
|
|
884 |
% |
Total new vehicles |
|
1,510.7 |
|
|
|
1,462.9 |
|
|
3 |
% |
|
|
3,010.6 |
|
|
|
2,619.2 |
|
|
15 |
% |
Used vehicles |
|
1,449.4 |
|
|
|
1,281.2 |
|
|
13 |
% |
|
|
2,820.2 |
|
|
|
2,384.1 |
|
|
18 |
% |
Wholesale vehicles |
|
121.4 |
|
|
|
84.8 |
|
|
43 |
% |
|
|
290.2 |
|
|
|
159.6 |
|
|
82 |
% |
Total vehicles |
|
3,081.5 |
|
|
|
2,828.9 |
|
|
9 |
% |
|
|
6,121.0 |
|
|
|
5,162.9 |
|
|
19 |
% |
Parts, service and collision repair |
|
398.1 |
|
|
|
346.1 |
|
|
15 |
% |
|
|
778.7 |
|
|
|
654.2 |
|
|
19 |
% |
Finance, insurance and other, net |
|
173.2 |
|
|
|
177.2 |
|
|
(2 |
) % |
|
|
339.7 |
|
|
|
321.9 |
|
|
6 |
% |
Total revenues |
|
3,652.8 |
|
|
|
3,352.2 |
|
|
9 |
% |
|
|
7,239.4 |
|
|
|
6,139.0 |
|
|
18 |
% |
Cost of sales: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
(1,176.0 |
) |
|
|
(1,335.1 |
) |
|
12 |
% |
|
|
(2,359.6 |
) |
|
|
(2,399.9 |
) |
|
2 |
% |
Fleet new vehicles |
|
(165.5 |
) |
|
|
(9.4 |
) |
|
NM |
|
|
|
(313.2 |
) |
|
|
(31.4 |
) |
|
(897 |
) % |
Total new vehicles |
|
(1,341.5 |
) |
|
|
(1,344.5 |
) |
|
— |
% |
|
|
(2,672.8 |
) |
|
|
(2,431.3 |
) |
|
(10 |
) % |
Used vehicles |
|
(1,402.3 |
) |
|
|
(1,246.1 |
) |
|
(13 |
) % |
|
|
(2,725.0 |
) |
|
|
(2,318.4 |
) |
|
(18 |
) % |
Wholesale vehicles |
|
(120.2 |
) |
|
|
(80.3 |
) |
|
(50 |
) % |
|
|
(287.6 |
) |
|
|
(154.2 |
) |
|
(87 |
) % |
Total vehicles |
|
(2,864.0 |
) |
|
|
(2,670.9 |
) |
|
(7 |
) % |
|
|
(5,685.4 |
) |
|
|
(4,903.9 |
) |
|
(16 |
) % |
Parts, service and collision repair |
|
(200.0 |
) |
|
|
(170.5 |
) |
|
(17 |
) % |
|
|
(393.9 |
) |
|
|
(323.4 |
) |
|
(22 |
) % |
Total cost of sales |
|
(3,064.0 |
) |
|
|
(2,841.4 |
) |
|
(8 |
) % |
|
|
(6,079.3 |
) |
|
|
(5,227.3 |
) |
|
(16 |
) % |
Gross profit |
|
588.8 |
|
|
|
510.8 |
|
|
15 |
% |
|
|
1,160.1 |
|
|
|
911.7 |
|
|
27 |
% |
Selling, general and administrative expenses |
|
(402.8 |
) |
|
|
(320.6 |
) |
|
(26 |
) % |
|
|
(789.8 |
) |
|
|
(610.0 |
) |
|
(29 |
) % |
Depreciation and amortization |
|
(31.2 |
) |
|
|
(24.8 |
) |
|
(26 |
) % |
|
|
(61.1 |
) |
|
|
(48.4 |
) |
|
(26 |
) % |
Operating income (loss) |
|
154.8 |
|
|
|
165.4 |
|
|
(6 |
) % |
|
|
309.2 |
|
|
|
253.3 |
|
|
22 |
% |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, floor plan |
|
(6.1 |
) |
|
|
(4.3 |
) |
|
(42 |
) % |
|
|
(11.1 |
) |
|
|
(9.4 |
) |
|
(18 |
) % |
Interest expense, other, net |
|
(21.3 |
) |
|
|
(10.1 |
) |
|
(111 |
) % |
|
|
(42.1 |
) |
|
|
(20.4 |
) |
|
(106 |
) % |
Other income (expense), net |
|
(0.2 |
) |
|
|
— |
|
|
(100 |
) % |
|
|
0.1 |
|
|
|
0.1 |
|
|
— |
% |
Total other income (expense) |
|
(27.6 |
) |
|
|
(14.4 |
) |
|
(92 |
) % |
|
|
(53.1 |
) |
|
|
(29.7 |
) |
|
(79 |
) % |
Income (loss) from continuing operations before taxes |
|
127.2 |
|
|
|
151.0 |
|
|
(16 |
) % |
|
|
256.1 |
|
|
|
223.6 |
|
|
15 |
% |
Provision for income taxes for continuing operations - benefit (expense) |
|
(32.4 |
) |
|
|
(37.0 |
) |
|
12 |
% |
|
|
(64.0 |
) |
|
|
(55.9 |
) |
|
(14 |
) % |
Income (loss) from continuing operations |
|
94.8 |
|
|
|
114.0 |
|
|
(17 |
) % |
|
|
192.1 |
|
|
|
167.7 |
|
|
15 |
% |
Discontinued operations: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from discontinued operations before taxes |
|
— |
|
|
|
(0.2 |
) |
|
100 |
% |
|
|
— |
|
|
|
0.5 |
|
|
(100 |
) % |
Provision for income taxes for discontinued operations - benefit (expense) |
|
— |
|
|
|
— |
|
|
— |
% |
|
|
— |
|
|
|
(0.1 |
) |
|
100 |
% |
Income (loss) from discontinued operations |
|
— |
|
|
|
(0.2 |
) |
|
100 |
% |
|
|
— |
|
|
|
0.4 |
|
|
(100 |
) % |
Net income (loss) |
$ |
94.8 |
|
|
$ |
113.8 |
|
|
(17 |
) % |
|
$ |
192.1 |
|
|
$ |
168.1 |
|
|
14 |
% |
Basic earnings (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings (loss) per share from continuing operations |
$ |
2.40 |
|
|
$ |
2.74 |
|
|
(12 |
) % |
|
$ |
4.81 |
|
|
$ |
4.03 |
|
|
19 |
% |
Earnings (loss) per share from discontinued operations |
|
— |
|
|
|
— |
|
|
— |
% |
|
|
— |
|
|
|
0.01 |
|
|
(100 |
) % |
Earnings (loss) per common share |
$ |
2.40 |
|
|
$ |
2.74 |
|
|
(12 |
) % |
|
$ |
4.81 |
|
|
$ |
4.04 |
|
|
19 |
% |
Weighted-average common shares outstanding |
|
39.5 |
|
|
|
41.6 |
|
|
5 |
% |
|
|
40.0 |
|
|
|
41.6 |
|
|
4 |
% |
Diluted earnings (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings (loss) per share from continuing operations |
$ |
2.34 |
|
|
$ |
2.63 |
|
|
(11 |
) % |
|
$ |
4.67 |
|
|
$ |
3.86 |
|
|
21 |
% |
Earnings (loss) per share from discontinued operations |
|
— |
|
|
|
— |
|
|
— |
% |
|
|
— |
|
|
|
0.01 |
|
|
(100 |
) % |
Earnings (loss) per common share |
$ |
2.34 |
|
|
$ |
2.63 |
|
|
(11 |
) % |
|
$ |
4.67 |
|
|
$ |
3.87 |
|
|
21 |
% |
Weighted-average common shares outstanding |
|
40.5 |
|
|
|
43.4 |
|
|
7 |
% |
|
|
41.2 |
|
|
|
43.5 |
|
|
5 |
% |
Dividends declared per common share |
$ |
0.25 |
|
|
$ |
0.12 |
|
|
108 |
% |
|
$ |
0.50 |
|
|
$ |
0.22 |
|
|
127 |
% |
NM = Not Meaningful |
|||||||||||||||||||||
Franchised Dealerships Segment - Reported |
|||||||||||||||||||||
|
Three Months Ended |
|
Better / (Worse) |
|
Six Months Ended |
|
Better / (Worse) |
||||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
% Change |
|
|
2022 |
|
|
|
2021 |
|
|
% Change |
||
|
(In millions, except unit and per unit data) |
||||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
$ |
1,341.7 |
|
|
$ |
1,452.3 |
|
|
(8 |
) % |
|
$ |
2,687.4 |
|
|
$ |
2,586.3 |
|
|
4 |
% |
Fleet new vehicles |
|
166.5 |
|
|
|
9.7 |
|
|
NM |
|
|
|
315.0 |
|
|
|
32.0 |
|
|
884 |
% |
Total new vehicles |
|
1,508.2 |
|
|
|
1,462.0 |
|
|
3 |
% |
|
|
3,002.4 |
|
|
|
2,618.3 |
|
|
15 |
% |
Used vehicles |
|
871.9 |
|
|
|
761.5 |
|
|
14 |
% |
|
|
1,725.7 |
|
|
|
1,423.1 |
|
|
21 |
% |
Wholesale vehicles |
|
79.2 |
|
|
|
63.0 |
|
|
26 |
% |
|
|
185.5 |
|
|
|
119.1 |
|
|
56 |
% |
Total vehicles |
|
2,459.3 |
|
|
|
2,286.5 |
|
|
8 |
% |
|
|
4,913.6 |
|
|
|
4,160.5 |
|
|
18 |
% |
Parts, service and collision repair |
|
398.1 |
|
|
|
346.1 |
|
|
15 |
% |
|
|
778.7 |
|
|
|
654.2 |
|
|
19 |
% |
Finance, insurance and other, net |
|
129.8 |
|
|
|
124.0 |
|
|
5 |
% |
|
|
256.2 |
|
|
|
221.6 |
|
|
16 |
% |
Total revenues |
|
2,987.2 |
|
|
|
2,756.6 |
|
|
8 |
% |
|
|
5,948.5 |
|
|
|
5,036.3 |
|
|
18 |
% |
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
167.3 |
|
|
|
118.0 |
|
|
42 |
% |
|
|
333.8 |
|
|
|
187.2 |
|
|
78 |
% |
Fleet new vehicles |
|
0.9 |
|
|
|
0.3 |
|
|
200 |
% |
|
|
1.8 |
|
|
|
0.6 |
|
|
200 |
% |
Total new vehicles |
|
168.2 |
|
|
|
118.3 |
|
|
42 |
% |
|
|
335.6 |
|
|
|
187.8 |
|
|
79 |
% |
Used vehicles |
|
43.7 |
|
|
|
55.2 |
|
|
(21 |
) % |
|
|
90.6 |
|
|
|
87.2 |
|
|
4 |
% |
Wholesale vehicles |
|
(0.5 |
) |
|
|
1.5 |
|
|
(133 |
) % |
|
|
(0.9 |
) |
|
|
2.2 |
|
|
(141 |
) % |
Total vehicles |
|
211.4 |
|
|
|
175.0 |
|
|
21 |
% |
|
|
425.3 |
|
|
|
277.2 |
|
|
53 |
% |
Parts, service and collision repair |
|
198.1 |
|
|
|
175.6 |
|
|
13 |
% |
|
|
384.8 |
|
|
|
330.8 |
|
|
16 |
% |
Finance, insurance and other, net |
|
129.8 |
|
|
|
124.0 |
|
|
5 |
% |
|
|
256.2 |
|
|
|
221.6 |
|
|
16 |
% |
Total gross profit |
|
539.3 |
|
|
|
474.6 |
|
|
14 |
% |
|
|
1,066.3 |
|
|
|
829.6 |
|
|
29 |
% |
Selling, general and administrative expenses |
|
(327.5 |
) |
|
|
(275.7 |
) |
|
(19 |
) % |
|
|
(642.8 |
) |
|
|
(525.8 |
) |
|
(22 |
) % |
Depreciation and amortization |
|
(25.3 |
) |
|
|
(20.6 |
) |
|
(23 |
) % |
|
|
(50.1 |
) |
|
|
(41.0 |
) |
|
(22 |
) % |
Operating income (loss) |
|
186.5 |
|
|
|
178.3 |
|
|
5 |
% |
|
|
373.4 |
|
|
|
262.8 |
|
|
42 |
% |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, floor plan |
|
(3.9 |
) |
|
|
(3.2 |
) |
|
(22 |
) % |
|
|
(7.2 |
) |
|
|
(7.3 |
) |
|
1 |
% |
Interest expense, other, net |
|
(20.2 |
) |
|
|
(9.7 |
) |
|
(108 |
) % |
|
|
(40.3 |
) |
|
|
(19.7 |
) |
|
(105 |
) % |
Other income (expense), net |
|
(0.3 |
) |
|
|
— |
|
|
(100 |
) % |
|
|
0.1 |
|
|
|
0.2 |
|
|
(50 |
) % |
Total other income (expense) |
|
(24.4 |
) |
|
|
(12.9 |
) |
|
(89 |
) % |
|
|
(47.4 |
) |
|
|
(26.8 |
) |
|
(77 |
) % |
Income (loss) before taxes |
|
162.1 |
|
|
|
165.4 |
|
|
(2 |
) % |
|
|
326.0 |
|
|
|
236.0 |
|
|
38 |
% |
Add: impairment charges |
|
— |
|
|
|
— |
|
|
NM |
|
|
|
— |
|
|
|
— |
|
|
NM |
|
Segment income (loss) |
$ |
162.1 |
|
|
$ |
165.4 |
|
|
(2 |
) % |
|
$ |
326.0 |
|
|
$ |
236.0 |
|
|
38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Unit Sales Volume: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
24,342 |
|
|
|
30,243 |
|
|
(20 |
) % |
|
|
48,944 |
|
|
|
54,060 |
|
|
(9 |
) % |
Fleet new vehicles |
|
4,638 |
|
|
|
245 |
|
|
NM |
|
|
|
9,019 |
|
|
|
786 |
|
|
NM |
|
Total new vehicles |
|
28,980 |
|
|
|
30,488 |
|
|
(5 |
) % |
|
|
57,963 |
|
|
|
54,846 |
|
|
6 |
% |
Used vehicles |
|
28,156 |
|
|
|
28,550 |
|
|
(1 |
) % |
|
|
55,234 |
|
|
|
55,786 |
|
|
(1 |
) % |
Wholesale vehicles |
|
5,851 |
|
|
|
6,753 |
|
|
(13 |
) % |
|
|
12,623 |
|
|
|
13,585 |
|
|
(7 |
) % |
Retail new & used vehicles |
|
52,498 |
|
|
|
58,793 |
|
|
(11 |
) % |
|
|
104,178 |
|
|
|
109,846 |
|
|
(5 |
) % |
Used-to-New Ratio |
|
0.97 |
|
|
|
0.94 |
|
|
4 |
% |
|
|
0.95 |
|
|
|
1.02 |
|
|
(6 |
) % |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross Profit Per Unit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
$ |
6,871 |
|
|
$ |
3,902 |
|
|
76 |
% |
|
$ |
6,821 |
|
|
$ |
3,463 |
|
|
97 |
% |
Fleet new vehicles |
$ |
203 |
|
|
$ |
1,319 |
|
|
(85 |
) % |
|
$ |
198 |
|
|
$ |
727 |
|
|
(73 |
) % |
Total new vehicles |
$ |
5,804 |
|
|
$ |
3,881 |
|
|
50 |
% |
|
$ |
5,790 |
|
|
$ |
3,424 |
|
|
69 |
% |
Used vehicles |
$ |
1,553 |
|
|
$ |
1,934 |
|
|
(20 |
) % |
|
$ |
1,640 |
|
|
$ |
1,563 |
|
|
5 |
% |
Finance, insurance and other, net |
$ |
2,472 |
|
|
$ |
2,110 |
|
|
17 |
% |
|
$ |
2,460 |
|
|
$ |
2,017 |
|
|
22 |
% |
NM = Not Meaningful |
|||||||||||||||||||||
Franchised Dealerships Segment - Same Store |
|||||||||||||||||||
|
Three Months Ended |
|
Better / (Worse) |
|
Six Months Ended |
|
Better / (Worse) |
||||||||||||
|
|
2022 |
|
|
2021 |
|
% Change |
|
|
2022 |
|
|
2021 |
|
% Change |
||||
|
(In millions, except unit and per unit data) |
||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Retail new vehicles |
$ |
1,126.3 |
|
|
$ |
1,447.5 |
|
(22 |
) % |
|
$ |
2,236.0 |
|
|
$ |
2,578.2 |
|
(13 |
) % |
Fleet new vehicles |
|
17.5 |
|
|
|
9.7 |
|
80 |
% |
|
|
31.0 |
|
|
|
32.0 |
|
(3 |
) % |
Total new vehicles |
|
1,143.8 |
|
|
|
1,457.2 |
|
(22 |
) % |
|
$ |
2,267.0 |
|
|
$ |
2,610.2 |
|
(13 |
) % |
Used vehicles |
|
751.5 |
|
|
|
758.8 |
|
(1 |
) % |
|
|
1,474.5 |
|
|
|
1,417.9 |
|
4 |
% |
Wholesale vehicles |
|
55.4 |
|
|
|
62.7 |
|
(12 |
) % |
|
|
138.1 |
|
|
|
118.7 |
|
16 |
% |
Total vehicles |
|
1,950.7 |
|
|
|
2,278.7 |
|
(14 |
) % |
|
|
3,879.6 |
|
|
|
4,146.8 |
|
(6 |
) % |
Parts, service and collision repair |
|
362.1 |
|
|
|
344.9 |
|
5 |
% |
|
|
706.8 |
|
|
|
651.8 |
|
8 |
% |
Finance, insurance and other, net |
|
106.6 |
|
|
|
123.7 |
|
(14 |
) % |
|
|
209.1 |
|
|
|
221.0 |
|
(5 |
) % |
Total revenues |
|
2,419.4 |
|
|
|
2,747.3 |
|
(12 |
) % |
|
|
4,795.5 |
|
|
|
5,019.6 |
|
(4 |
) % |
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Retail new vehicles |
|
139.0 |
|
|
|
117.4 |
|
18 |
% |
|
|
276.9 |
|
|
|
186.2 |
|
49 |
% |
Fleet new vehicles |
|
0.8 |
|
|
|
0.3 |
|
167 |
% |
|
|
1.4 |
|
|
|
0.6 |
|
133 |
% |
Total new vehicles |
|
139.8 |
|
|
|
117.7 |
|
19 |
% |
|
|
278.3 |
|
|
|
186.8 |
|
49 |
% |
Used vehicles |
|
38.2 |
|
|
|
54.5 |
|
(30 |
) % |
|
|
77.5 |
|
|
|
89.0 |
|
(13 |
) % |
Wholesale vehicles |
|
(0.4 |
) |
|
|
4.1 |
|
(110 |
) % |
|
|
(0.8 |
) |
|
|
4.9 |
|
(116 |
) % |
Total vehicles |
|
177.6 |
|
|
|
176.3 |
|
1 |
% |
|
|
355.0 |
|
|
|
280.7 |
|
26 |
% |
Parts, service and collision repair |
|
181.2 |
|
|
|
174.5 |
|
4 |
% |
|
|
350.9 |
|
|
|
328.8 |
|
7 |
% |
Finance, insurance and other, net |
|
106.6 |
|
|
|
123.7 |
|
(14 |
) % |
|
|
209.1 |
|
|
|
221.0 |
|
(5 |
) % |
Total gross profit |
$ |
465.4 |
|
|
$ |
474.5 |
|
(2 |
) % |
|
$ |
915.0 |
|
|
$ |
830.5 |
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Unit Sales Volume: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Retail new vehicles |
|
20,135 |
|
|
|
30,129 |
|
(33 |
) % |
|
|
40,418 |
|
|
|
53,865 |
|
(25 |
) % |
Fleet new vehicles |
|
381 |
|
|
|
245 |
|
56 |
% |
|
|
658 |
|
|
|
786 |
|
(16 |
) % |
Total new vehicles |
|
20,516 |
|
|
|
30,374 |
|
(32 |
) % |
|
|
41,076 |
|
|
|
54,651 |
|
(25 |
) % |
Used vehicles |
|
23,555 |
|
|
|
28,429 |
|
(17 |
) % |
|
|
46,272 |
|
|
|
55,549 |
|
(17 |
) % |
Wholesale vehicles |
|
4,313 |
|
|
|
6,729 |
|
(36 |
) % |
|
|
9,675 |
|
|
|
13,532 |
|
(29 |
) % |
Retail new & used vehicles |
|
43,690 |
|
|
|
58,558 |
|
(25 |
) % |
|
|
86,690 |
|
|
|
109,414 |
|
(21 |
) % |
Used-to-New Ratio |
|
1.15 |
|
|
|
0.94 |
|
23 |
% |
|
|
1.13 |
|
|
|
1.02 |
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gross Profit Per Unit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Retail new vehicles |
$ |
6,905 |
|
|
$ |
3,897 |
|
77 |
% |
|
$ |
6,851 |
|
|
$ |
3,458 |
|
98 |
% |
Fleet new vehicles |
$ |
1,973 |
|
|
$ |
1,319 |
|
50 |
% |
|
$ |
2,130 |
|
|
$ |
727 |
|
193 |
% |
New vehicles |
$ |
6,813 |
|
|
$ |
3,876 |
|
76 |
% |
|
$ |
6,775 |
|
|
$ |
3,418 |
|
98 |
% |
Used vehicles |
$ |
1,622 |
|
|
$ |
1,915 |
|
(15 |
) % |
|
$ |
1,674 |
|
|
$ |
1,602 |
|
4 |
% |
Finance, insurance and other, net |
$ |
2,440 |
|
|
$ |
2,113 |
|
15 |
% |
|
$ |
2,412 |
|
|
$ |
2,020 |
|
19 |
% |
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 |
|
Better / (Worse) |
|
Six Months Ended |
|
Better / (Worse) |
||||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
% Change |
|
|
2022 |
|
|
|
2021 |
|
|
% Change |
||
|
(In millions, except unit and per unit data) |
||||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
$ |
2.5 |
|
|
$ |
0.9 |
|
|
178 |
% |
|
$ |
8.2 |
|
|
$ |
0.9 |
|
|
811 |
% |
Used vehicles |
|
577.5 |
|
|
|
519.7 |
|
|
11 |
% |
|
|
1,094.5 |
|
|
|
961.0 |
|
|
14 |
% |
Wholesale vehicles |
|
42.2 |
|
|
|
21.8 |
|
|
94 |
% |
|
|
104.7 |
|
|
|
40.5 |
|
|
159 |
% |
Total vehicles |
|
622.2 |
|
|
|
542.4 |
|
|
15 |
% |
|
|
1,207.4 |
|
|
|
1,002.4 |
|
|
20 |
% |
Finance, insurance and other, net |
|
43.4 |
|
|
|
53.2 |
|
|
(18 |
) % |
|
|
83.5 |
|
|
|
100.3 |
|
|
(17 |
) % |
Total revenues |
|
665.6 |
|
|
|
595.6 |
|
|
12 |
% |
|
|
1,290.9 |
|
|
|
1,102.7 |
|
|
17 |
% |
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
1.0 |
|
|
|
— |
|
|
100 |
% |
|
|
2.2 |
|
|
|
0.1 |
|
|
NM |
|
Used vehicles |
|
3.4 |
|
|
|
(20.1 |
) |
|
117 |
% |
|
|
4.6 |
|
|
|
(21.4 |
) |
|
121 |
% |
Wholesale vehicles |
|
1.7 |
|
|
|
3.0 |
|
|
(43 |
) % |
|
|
3.5 |
|
|
|
3.2 |
|
|
9 |
% |
Total vehicles |
|
6.1 |
|
|
|
(17.1 |
) |
|
136 |
% |
|
|
10.3 |
|
|
|
(18.1 |
) |
|
157 |
% |
Finance, insurance and other, net |
|
43.4 |
|
|
|
53.2 |
|
|
(18 |
) % |
|
|
83.5 |
|
|
|
100.3 |
|
|
(17 |
) % |
Total gross profit |
|
49.5 |
|
|
|
36.2 |
|
|
37 |
% |
|
|
93.8 |
|
|
|
82.2 |
|
|
14 |
% |
Selling, general and administrative expenses |
|
(75.3 |
) |
|
|
(44.9 |
) |
|
(68 |
) % |
|
|
(147.0 |
) |
|
|
(84.2 |
) |
|
(75 |
) % |
Depreciation and amortization |
|
(5.9 |
) |
|
|
(4.2 |
) |
|
(40 |
) % |
|
|
(11.0 |
) |
|
|
(7.4 |
) |
|
(49 |
) % |
Operating income (loss) |
|
(31.7 |
) |
|
|
(12.9 |
) |
|
(146 |
) % |
|
|
(64.2 |
) |
|
|
(9.4 |
) |
|
(583 |
) % |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, floor plan |
|
(2.2 |
) |
|
|
(1.1 |
) |
|
(100 |
) % |
|
|
(3.9 |
) |
|
|
(2.1 |
) |
|
(86 |
) % |
Interest expense, other, net |
|
(1.1 |
) |
|
|
(0.4 |
) |
|
(175 |
) % |
|
|
(1.8 |
) |
|
|
(0.7 |
) |
|
(157 |
) % |
Other income (expense), net |
|
0.1 |
|
|
|
— |
|
|
100 |
% |
|
|
— |
|
|
|
(0.1 |
) |
|
100 |
% |
Total other income (expense) |
|
(3.2 |
) |
|
|
(1.5 |
) |
|
(113 |
) % |
|
|
(5.7 |
) |
|
|
(2.9 |
) |
|
(97 |
) % |
Income (loss) before taxes |
|
(34.9 |
) |
|
|
(14.4 |
) |
|
(142 |
) % |
|
|
(69.9 |
) |
|
|
(12.4 |
) |
|
(464 |
) % |
Add: impairment charges |
|
— |
|
|
|
— |
|
|
NM |
|
|
|
— |
|
|
|
— |
|
|
NM |
|
Segment income (loss) |
$ |
(34.9 |
) |
|
$ |
(14.4 |
) |
|
(142 |
) % |
|
$ |
(69.9 |
) |
|
$ |
(12.4 |
) |
|
(464 |
) % |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Unit Sales Volume: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
85 |
|
|
|
14 |
|
|
507 |
% |
|
|
170 |
|
|
|
14 |
|
|
NM |
|
Used vehicles |
|
16,608 |
|
|
|
21,261 |
|
|
(22 |
) % |
|
|
31,603 |
|
|
|
40,931 |
|
|
(23 |
) % |
Wholesale vehicles |
|
2,694 |
|
|
|
2,878 |
|
|
(6 |
) % |
|
|
6,343 |
|
|
|
5,739 |
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross Profit Per Unit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total used vehicle and F&I |
$ |
2,804 |
|
|
$ |
1,537 |
|
|
82 |
% |
|
$ |
2,774 |
|
|
$ |
1,922 |
|
|
44 |
% |
NM = Not Meaningful |
|||||||||||||||||||||
EchoPark Segment - Same Market |
|||||||||||||||||||||
|
Three Months Ended |
|
Better / (Worse) |
|
Six Months Ended |
|
Better / (Worse) |
||||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
% Change |
|
|
2022 |
|
|
|
2021 |
|
|
% Change |
||
|
(In millions, except unit and per unit data) |
||||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
$ |
2.9 |
|
|
$ |
0.9 |
|
|
222 |
% |
|
$ |
7.0 |
|
|
$ |
0.9 |
|
|
678 |
% |
Used vehicles |
|
406.3 |
|
|
|
518.6 |
|
|
(22 |
) % |
|
$ |
768.4 |
|
|
$ |
960.1 |
|
|
(20 |
) % |
Wholesale vehicles |
|
35.0 |
|
|
|
21.9 |
|
|
60 |
% |
|
|
89.3 |
|
|
|
40.5 |
|
|
120 |
% |
Total vehicles |
|
444.2 |
|
|
|
541.4 |
|
|
(18 |
) % |
|
|
864.7 |
|
|
|
1,001.5 |
|
|
(14 |
) % |
Finance, insurance and other, net |
|
30.8 |
|
|
|
53.3 |
|
|
(42 |
) % |
|
|
59.4 |
|
|
|
99.9 |
|
|
(41 |
) % |
Total revenues |
|
475.0 |
|
|
|
594.7 |
|
|
(20 |
) % |
|
|
924.1 |
|
|
|
1,101.4 |
|
|
(16 |
) % |
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
0.3 |
|
|
|
0.1 |
|
|
200 |
% |
|
|
0.7 |
|
|
|
0.1 |
|
|
200 |
% |
Used vehicles |
|
(3.6 |
) |
|
|
(20.3 |
) |
|
82 |
% |
|
|
(10.4 |
) |
|
|
(21.6 |
) |
|
52 |
% |
Wholesale vehicles |
|
1.5 |
|
|
|
2.8 |
|
|
(46 |
) % |
|
|
3.5 |
|
|
|
3.1 |
|
|
13 |
% |
Total vehicles |
|
(1.8 |
) |
|
|
(17.4 |
) |
|
90 |
% |
|
|
(6.2 |
) |
|
|
(18.4 |
) |
|
66 |
% |
Finance, insurance and other, net |
|
30.8 |
|
|
|
53.3 |
|
|
(42 |
) % |
|
|
59.4 |
|
|
|
99.9 |
|
|
(41 |
) % |
Total gross profit |
$ |
29.0 |
|
|
$ |
35.9 |
|
|
(19 |
) % |
|
$ |
53.2 |
|
|
$ |
81.5 |
|
|
(35 |
) % |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Unit Sales Volume: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
37 |
|
|
|
14 |
|
|
164 |
% |
|
|
81 |
|
|
|
14 |
|
|
479 |
% |
Used vehicles |
|
12,440 |
|
|
|
21,222 |
|
|
(41 |
) % |
|
|
23,830 |
|
|
|
40,892 |
|
|
(42 |
) % |
Wholesale vehicles |
|
2,286 |
|
|
|
2,878 |
|
|
(21 |
) % |
|
|
5,393 |
|
|
|
5,739 |
|
|
(6 |
) % |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross Profit Per Unit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total used vehicle and F&I |
$ |
2,171 |
|
|
$ |
1,538 |
|
|
41 |
% |
|
$ |
2,048 |
|
|
$ |
1,914 |
|
|
7 |
% |
NM = Not Meaningful |
|||||||||||||||||||||
Note: All currently operating EchoPark stores in a local geographic market are included within the same market group as of the first full month following the first anniversary of the market's opening.
Consolidated Selling, General and Administrative ("SG&A") Expenses - Non-GAAP Reconciliation |
||||||||||||||
|
Three Months Ended |
|
Better / (Worse) |
|||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
Change |
|
% Change |
|||
|
(In millions) |
|||||||||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Compensation |
$ |
266.4 |
|
|
$ |
213.8 |
|
|
$ |
(52.6 |
) |
|
(25 |
) % |
Advertising |
|
25.6 |
|
|
|
15.3 |
|
|
|
(10.3 |
) |
|
(67 |
) % |
Rent |
|
13.7 |
|
|
|
13.7 |
|
|
|
— |
|
|
— |
% |
Other |
|
97.1 |
|
|
|
77.8 |
|
|
|
(19.3 |
) |
|
(25 |
) % |
Total SG&A expenses |
$ |
402.8 |
|
|
$ |
320.6 |
|
|
$ |
(82.2 |
) |
|
(26 |
) % |
Items of interest: |
|
|
|
|
|
|
|
|||||||
Long term compensation charges |
$ |
(4.4 |
) |
|
$ |
— |
|
|
|
|
|
|||
Total SG&A adjustments |
$ |
(4.4 |
) |
|
$ |
— |
|
|
|
|
|
|||
Adjusted: |
|
|
|
|
|
|
|
|||||||
Total adjusted SG&A expenses |
$ |
398.4 |
|
|
$ |
320.6 |
|
|
$ |
(77.8 |
) |
|
(24 |
) % |
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
|||||||
Compensation |
|
45.2 |
% |
|
|
41.9 |
% |
|
|
(330 |
) |
bps |
||
Advertising |
|
4.3 |
% |
|
|
3.0 |
% |
|
|
(130 |
) |
bps |
||
Rent |
|
2.3 |
% |
|
|
2.7 |
% |
|
|
40 |
|
bps |
||
Other |
|
16.6 |
% |
|
|
15.2 |
% |
|
|
(140 |
) |
bps |
||
Total SG&A expenses as a % of gross profit |
|
68.4 |
% |
|
|
62.8 |
% |
|
|
(560 |
) |
bps |
||
Items of interest: |
|
|
|
|
|
|
||||||||
Long term compensation charges |
|
(0.7 |
) % |
|
|
— |
% |
|
|
|
||||
Total effect of adjustments |
|
(0.7 |
) % |
|
|
— |
% |
|
|
|
||||
Adjusted: |
|
|
|
|
|
|
||||||||
Total adjusted SG&A expenses as a % of gross profit |
|
67.7 |
% |
|
|
62.8 |
% |
|
|
(490 |
) |
bps |
||
Consolidated - SG&A Expenses - Non-GAAP Reconciliation (Continued) |
||||||||||||||
|
Six Months Ended |
|
Better / (Worse) |
|||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
Change |
|
% Change |
|||
|
(In millions) |
|||||||||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Compensation |
$ |
518.9 |
|
|
$ |
402.3 |
|
|
$ |
(116.6 |
) |
|
(29 |
) % |
Advertising |
|
51.7 |
|
|
|
27.5 |
|
|
|
(24.2 |
) |
|
(88 |
) % |
Rent |
|
26.4 |
|
|
|
27.4 |
|
|
|
1.0 |
|
|
4 |
% |
Other |
|
192.8 |
|
|
|
152.8 |
|
|
|
(40.0 |
) |
|
(26 |
) % |
Total SG&A expenses |
$ |
789.8 |
|
|
$ |
610.0 |
|
|
$ |
(179.8 |
) |
|
(29 |
) % |
Items of interest: |
|
|
|
|
|
|
|
|||||||
Long term compensation charges |
|
(4.4 |
) |
|
$ |
— |
|
|
|
|
|
|||
Total SG&A adjustments |
$ |
(4.4 |
) |
|
$ |
— |
|
|
|
|
|
|||
Adjusted: |
|
|
|
|
|
|
|
|||||||
Total adjusted SG&A expenses |
$ |
785.4 |
|
|
$ |
610.0 |
|
|
$ |
(175.4 |
) |
|
(29 |
) % |
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
|||||||
Compensation |
|
44.7 |
% |
|
|
44.1 |
% |
|
|
(60 |
) |
|
bps |
|
Advertising |
|
4.5 |
% |
|
|
3.0 |
% |
|
|
(150 |
) |
|
bps |
|
Rent |
|
2.3 |
% |
|
|
3.0 |
% |
|
|
70 |
|
|
bps |
|
Other |
|
16.6 |
% |
|
|
16.8 |
% |
|
|
20 |
|
|
bps |
|
Total SG&A expenses as a % of gross profit |
|
68.1 |
% |
|
|
66.9 |
% |
|
|
(120 |
) |
|
bps |
|
Items of interest: |
|
|
|
|
|
|
||||||||
Long term compensation charges |
|
(0.4 |
) % |
|
|
— |
% |
|
|
|
||||
Total effect of adjustments |
|
(0.4 |
) % |
|
|
— |
% |
|
|
|
||||
Adjusted: |
|
|
|
|
|
|
||||||||
Total adjusted SG&A expenses as a % of gross profit |
|
67.7 |
% |
|
|
66.9 |
% |
|
|
(80 |
) |
bps |
||
Franchised Dealerships Segment - SG&A Expenses - Non-GAAP Reconciliation |
||||||||||||||
|
Three Months Ended |
|
Better / (Worse) |
|||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
Change |
|
% Change |
|||
|
(In millions) |
|||||||||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Compensation |
$ |
225.9 |
|
|
$ |
187.8 |
|
|
$ |
(38.1 |
) |
|
(20 |
) % |
Advertising |
|
7.8 |
|
|
|
7.5 |
|
|
|
(0.3 |
) |
|
(4 |
) % |
Rent |
|
11.0 |
|
|
|
12.1 |
|
|
|
1.1 |
|
|
9 |
% |
Other |
|
82.9 |
|
|
|
68.3 |
|
|
|
(14.6 |
) |
|
(21 |
) % |
Total SG&A expenses |
$ |
327.6 |
|
|
$ |
275.7 |
|
|
$ |
(51.9 |
) |
|
(19 |
) % |
Items of interest: |
|
|
|
|
|
|
|
|||||||
Long term compensation charges |
$ |
(4.4 |
) |
|
$ |
— |
|
|
|
|
|
|||
Total SG&A adjustments |
$ |
(4.4 |
) |
|
$ |
— |
|
|
|
|
|
|||
Adjusted: |
|
|
|
|
|
|
|
|||||||
Total adjusted SG&A expenses |
$ |
323.2 |
|
|
$ |
275.7 |
|
|
$ |
(47.5 |
) |
|
(17 |
) % |
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
|||||||
Compensation |
|
41.9 |
% |
|
|
39.6 |
% |
|
|
(230 |
) |
bps |
||
Advertising |
|
1.4 |
% |
|
|
1.6 |
% |
|
|
20 |
|
bps |
||
Rent |
|
2.0 |
% |
|
|
2.5 |
% |
|
|
50 |
|
bps |
||
Other |
|
15.4 |
% |
|
|
14.4 |
% |
|
|
(100 |
) |
bps |
||
Total SG&A expenses as a % of gross profit |
|
60.7 |
% |
|
|
58.1 |
% |
|
|
(260 |
) |
bps |
||
Items of interest: |
|
|
|
|
|
|
||||||||
Long term compensation charges |
|
(0.8 |
) % |
|
|
— |
% |
|
|
|
||||
Total effect of adjustments |
|
(0.8 |
) % |
|
|
— |
% |
|
|
|
||||
Adjusted: |
|
|
|
|
|
|
||||||||
Total adjusted SG&A expenses as a % of gross profit |
|
59.9 |
% |
|
|
58.1 |
% |
|
|
(180 |
) |
bps |
||
Franchised Dealerships Segment - SG&A Expenses - Non-GAAP Reconciliation (Continued) |
||||||||||||||
|
Six Months Ended |
|
Better / (Worse) |
|||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
Change |
|
% Change |
|||
|
(In millions) |
|||||||||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Compensation |
$ |
441.0 |
|
|
$ |
353.2 |
|
|
$ |
(87.8 |
) |
|
(25 |
) % |
Advertising |
|
15.6 |
|
|
|
13.3 |
|
|
|
(2.3 |
) |
|
(17 |
) % |
Rent |
|
21.9 |
|
|
|
24.2 |
|
|
|
2.3 |
|
|
10 |
% |
Other |
|
164.3 |
|
|
|
135.1 |
|
|
|
(29.2 |
) |
|
(22 |
) % |
Total SG&A expenses |
$ |
642.8 |
|
|
$ |
525.8 |
|
|
$ |
(117.0 |
) |
|
(22 |
) % |
Items of interest: |
|
|
|
|
|
|
|
|||||||
Long term compensation charges |
$ |
(4.4 |
) |
|
$ |
— |
|
|
|
|
|
|||
Total SG&A adjustments |
$ |
(4.4 |
) |
|
$ |
— |
|
|
|
|
|
|||
Adjusted: |
|
|
|
|
|
|
|
|||||||
Total adjusted SG&A expenses |
$ |
638.4 |
|
|
$ |
525.8 |
|
|
$ |
(112.6 |
) |
|
(21 |
) % |
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
|||||||
Compensation |
|
41.4 |
% |
|
|
42.6 |
% |
|
|
120 |
|
|
bps |
|
Advertising |
|
1.5 |
% |
|
|
1.6 |
% |
|
|
10 |
|
|
bps |
|
Rent |
|
2.1 |
% |
|
|
2.9 |
% |
|
|
80 |
|
|
bps |
|
Other |
|
15.3 |
% |
|
|
16.3 |
% |
|
|
100 |
|
|
bps |
|
Total SG&A expenses as a % of gross profit |
|
60.3 |
% |
|
|
63.4 |
% |
|
|
310 |
|
|
bps |
|
Items of interest: |
|
|
|
|
|
|
||||||||
Long term compensation charges |
|
(0.4 |
) % |
|
|
— |
% |
|
|
|
||||
Total effect of adjustments |
|
(0.4 |
) % |
|
|
— |
% |
|
|
|
||||
Adjusted: |
|
|
|
|
|
|
||||||||
Total adjusted SG&A expenses as a % of gross profit |
|
59.9 |
% |
|
|
63.4 |
% |
|
|
350 |
|
bps |
||
EchoPark Segment - SG&A Expenses |
||||||||||||||
|
Three Months Ended |
|
Better / (Worse) |
|||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
Change |
|
% Change |
|||
|
(In millions) |
|||||||||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Compensation |
$ |
40.5 |
|
|
$ |
26.0 |
|
|
$ |
(14.5 |
) |
|
(56 |
) % |
Advertising |
|
17.8 |
|
|
|
7.8 |
|
|
|
(10.0 |
) |
|
(128 |
) % |
Rent |
|
2.7 |
|
|
|
1.6 |
|
|
|
(1.1 |
) |
|
(69 |
) % |
Other |
|
14.2 |
|
|
|
9.5 |
|
|
|
(4.7 |
) |
|
(49 |
) % |
Total SG&A expenses |
$ |
75.2 |
|
|
$ |
44.9 |
|
|
$ |
(30.3 |
) |
|
(67 |
) % |
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
|||||||
Compensation |
|
81.8 |
% |
|
|
71.8 |
% |
|
|
(1,000 |
) |
bps |
||
Advertising |
|
36.0 |
% |
|
|
21.5 |
% |
|
|
(1,450 |
) |
bps |
||
Rent |
|
5.5 |
% |
|
|
4.4 |
% |
|
|
(110 |
) |
bps |
||
Other |
|
28.6 |
% |
|
|
26.3 |
% |
|
|
(230 |
) |
bps |
||
Total SG&A expenses as a % of gross profit |
|
151.9 |
% |
|
|
124.0 |
% |
|
|
(2,790 |
) |
bps |
||
|
Six Months Ended |
|
Better / (Worse) |
|||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
Change |
|
% Change |
|||
|
(In millions) |
|||||||||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Compensation |
$ |
77.9 |
|
|
$ |
49.1 |
|
|
$ |
(28.8 |
) |
|
(59 |
) % |
Advertising |
|
36.1 |
|
|
|
14.2 |
|
|
|
(21.9 |
) |
|
(154 |
) % |
Rent |
|
4.5 |
|
|
|
3.2 |
|
|
|
(1.3 |
) |
|
(41 |
) % |
Other |
|
28.5 |
|
|
|
17.7 |
|
|
|
(10.8 |
) |
|
(61 |
) % |
Total SG&A expenses |
$ |
147.0 |
|
|
$ |
84.2 |
|
|
$ |
(62.8 |
) |
|
(75 |
) % |
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
|||||||
Compensation |
|
83.0 |
% |
|
|
59.8 |
% |
|
|
(2,320 |
) |
bps |
||
Advertising |
|
38.5 |
% |
|
|
17.3 |
% |
|
|
(2,120 |
) |
bps |
||
Rent |
|
4.8 |
% |
|
|
3.9 |
% |
|
|
(90 |
) |
bps |
||
Other |
|
30.4 |
% |
|
|
21.6 |
% |
|
|
(880 |
) |
bps |
||
Total SG&A expenses as a % of gross profit |
|
156.7 |
% |
|
|
102.6 |
% |
|
|
(5,410 |
) |
bps |
||
Earnings Per Share from Continuing Operations - Non-GAAP Reconciliation |
|||||||||||||||
|
Three Months Ended |
|
Three Months Ended |
||||||||||||
|
Weighted- Average Shares |
|
Amount |
|
Per Share Amount |
|
Weighted- Average Shares |
|
Amount |
|
Per Share Amount |
||||
|
(In millions, except per share amounts) |
||||||||||||||
Diluted earnings (loss) and shares from continuing operations |
40.5 |
|
$ |
94.8 |
|
$ |
2.34 |
|
43.4 |
|
$ |
114.0 |
|
$ |
2.63 |
Pre-tax items of interest: |
|
|
|
|
|
|
|
|
|
|
|
||||
Long term compensation charges |
|
|
$ |
4.4 |
|
|
|
|
|
$ |
— |
|
|
||
Total pre-tax items of interest |
|
|
$ |
4.4 |
|
|
|
|
|
$ |
— |
|
|
||
Adjusted diluted earnings (loss) and shares from continuing operations |
40.5 |
|
$ |
99.2 |
|
$ |
2.45 |
|
43.4 |
|
$ |
114.0 |
|
$ |
2.63 |
|
|
Six Months Ended |
|
Six Months Ended |
||||||||||||
|
Weighted- Average Shares |
|
Amount |
|
Per Share Amount |
|
Weighted- Average Shares |
|
Amount |
|
Per Share Amount |
||||
|
(In millions, except per share amounts) |
||||||||||||||
Diluted earnings (loss) and shares from continuing operations |
41.2 |
|
$ |
192.1 |
|
$ |
4.67 |
|
43.5 |
|
$ |
167.7 |
|
$ |
3.86 |
Pre-tax items of interest: |
|
|
|
|
|
|
|
|
|
|
|
||||
Long term compensation charges |
|
|
$ |
4.4 |
|
|
|
|
|
$ |
— |
|
|
||
Total pre-tax items of interest |
|
|
$ |
4.4 |
|
|
|
|
|
$ |
— |
|
|
||
Adjusted diluted earnings (loss) and shares from continuing operations |
41.2 |
|
$ |
196.5 |
|
$ |
4.77 |
|
43.5 |
|
$ |
167.7 |
|
$ |
3.86 |
Adjusted EBITDA - Non-GAAP Reconciliation |
||||||||||||||||||||||||||||
|
Three Months Ended |
|
Three Months Ended |
|||||||||||||||||||||||||
|
Franchised
|
|
EchoPark
|
|
Discontinued
|
|
Total |
|
Franchised
|
|
EchoPark
|
|
Discontinued
|
|
Total |
|||||||||||||
|
(In millions) |
|||||||||||||||||||||||||||
Net income (loss) |
|
|
|
|
|
|
$ |
94.8 |
|
|
|
|
|
|
|
$ |
113.8 |
|
||||||||||
Provision for income taxes |
|
|
|
|
|
|
|
32.4 |
|
|
|
|
|
|
|
|
37.0 |
|
||||||||||
Income (loss) before taxes |
$ |
162.1 |
|
$ |
(34.9 |
) |
|
$ |
— |
|
$ |
127.2 |
|
$ |
165.4 |
|
|
$ |
(14.4 |
) |
|
$ |
(0.2 |
) |
|
$ |
150.8 |
|
Non-floor plan interest |
|
19.1 |
|
|
1.0 |
|
|
|
— |
|
|
20.1 |
|
|
8.9 |
|
|
|
0.3 |
|
|
|
— |
|
|
|
9.2 |
|
Depreciation and amortization |
|
26.4 |
|
|
6.0 |
|
|
|
— |
|
|
32.4 |
|
|
21.4 |
|
|
|
4.2 |
|
|
|
— |
|
|
|
25.6 |
|
Stock-based compensation expense |
|
4.2 |
|
|
— |
|
|
|
— |
|
|
4.2 |
|
|
4.0 |
|
|
|
— |
|
|
|
— |
|
|
|
4.0 |
|
Long-term compensation charges |
|
4.4 |
|
|
— |
|
|
|
— |
|
|
4.4 |
|
|
— |
|
|
|
0.5 |
|
|
|
— |
|
|
|
0.5 |
|
Loss (gain) on franchise and real estate disposals |
|
0.1 |
|
|
— |
|
|
|
— |
|
|
0.1 |
|
|
(0.4 |
) |
|
|
— |
|
|
|
— |
|
|
|
(0.4 |
) |
Adjusted EBITDA |
$ |
216.3 |
|
$ |
(27.9 |
) |
|
$ |
— |
|
$ |
188.4 |
|
$ |
199.3 |
|
|
$ |
(9.4 |
) |
|
$ |
(0.2 |
) |
|
$ |
189.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Six Months Ended |
|
Six Months Ended |
||||||||||||||||||||||||||
|
Franchised
|
|
EchoPark
|
|
Discontinued
|
|
Total |
|
Franchised
|
|
EchoPark
|
|
Discontinued
|
|
Total |
||||||||||||||
|
(In millions) |
||||||||||||||||||||||||||||
Net income (loss) |
|
|
|
|
|
|
$ |
192.1 |
|
|
|
|
|
|
|
|
$ |
168.1 |
|
||||||||||
Provision for income taxes |
|
|
|
|
|
|
|
64.0 |
|
|
|
|
|
|
|
|
|
56.0 |
|
||||||||||
Income (loss) before taxes |
$ |
326.0 |
|
|
$ |
(69.9 |
) |
|
$ |
— |
|
$ |
256.1 |
|
|
$ |
236.0 |
|
|
$ |
(12.4 |
) |
|
$ |
0.5 |
|
$ |
224.1 |
|
Non-floor plan interest |
|
38.1 |
|
|
|
1.7 |
|
|
|
— |
|
|
39.8 |
|
|
|
18.0 |
|
|
|
0.7 |
|
|
|
— |
|
|
18.7 |
|
Depreciation & amortization |
|
52.3 |
|
|
|
11.2 |
|
|
|
— |
|
|
63.5 |
|
|
|
42.7 |
|
|
|
7.5 |
|
|
|
— |
|
|
50.2 |
|
Stock-based compensation expense |
|
8.6 |
|
|
|
— |
|
|
|
— |
|
|
8.6 |
|
|
|
7.5 |
|
|
|
— |
|
|
|
— |
|
|
7.5 |
|
Long-term compensation charges |
|
4.4 |
|
|
|
— |
|
|
|
— |
|
|
4.4 |
|
|
|
— |
|
|
|
1.0 |
|
|
|
— |
|
|
1.0 |
|
Loss (gain) on franchise and real estate disposals |
|
(1.0 |
) |
|
|
— |
|
|
|
— |
|
|
(1.0 |
) |
|
|
(0.5 |
) |
|
|
— |
|
|
|
— |
|
|
(0.5 |
) |
Adjusted EBITDA |
$ |
428.4 |
|
|
$ |
(57.0 |
) |
|
$ |
— |
|
$ |
371.4 |
|
|
$ |
303.7 |
|
|
$ |
(3.2 |
) |
|
$ |
0.5 |
|
$ |
301.0 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220728005247/en/
Company Contacts
Investor Inquiries:
ir@sonicautomotive.com
Press Inquiries:
212-896-1272 / 646-379-7971
ddevoren@kcsa.com/jgreenwald@kcsa.com
Source:
FAQ
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