Full Year 2023 Results Include All-Time Record
Annual Revenues of $14.4 Billion
EchoPark Segment Expected to Achieve Breakeven
Adjusted EBITDA* in the First Quarter of 2024
Sonic Automotive, Inc. (“Sonic Automotive,” “Sonic,” the
“Company,” "we," "us" or "our") (NYSE:SAH), one of the nation’s
largest automotive retailers, today reported financial results for
the fourth quarter and fiscal year ended December 31, 2023.
Fourth Quarter 2023 Financial
Summary
- Total revenues of $3.6 billion, flat year-over-year; total
gross profit of $541.1 million, down 6% year-over-year
- Reported net income of $38.7 million ($1.11 earnings per
diluted share)
- Reported fourth quarter net income includes the effect of a
$16.7 million pre-tax charge related to non-cash impairment charges
(partially offset by a $4.3 million tax benefit on above charges),
and a one-time income tax charge of $5.8 million related to certain
non-deductible tax items
- Excluding these items, adjusted fourth quarter net income* was
$56.9 million ($1.63 adjusted earnings per diluted share*)
- Total selling, general and administrative (“SG&A”) expenses
as a percentage of gross profit of 71.4% (67.0% on a Franchised
Dealerships Segment basis)
- Franchised Dealerships Segment revenues of $3.0 billion, up 1%
year-over-year; Franchised Dealerships Segment gross profit of
$491.4 million, down 7% year-over-year
- EchoPark Segment revenues of $556.6 million, down 6%
year-over-year; EchoPark Segment gross profit of $42.8 million, up
5% year-over-year; EchoPark Segment retail used vehicle unit sales
volume of 17,562 units, up 1% year-over-year
- EchoPark Segment loss (defined as loss before taxes and
impairment charges) of $15.9 million; EchoPark Segment adjusted
EBITDA* loss of $9.1 million, a 64% improvement year-over-year
- Expect to achieve breakeven EchoPark Segment adjusted EBITDA*
in the first quarter of 2024
- Fourth quarter EchoPark Segment adjusted EBITDA* loss includes:
a $0.9 million loss recognized in the fourth quarter related to
stores closed prior to the fourth quarter; and a $1.3 million loss
related to the Northwest Motorsport stores closed after the end of
the fourth quarter in January 2024
Full Year 2023 Financial
Summary
- All-time record annual revenues of $14.4 billion, up 3%
year-over-year; gross profit of $2.2 billion, down 3%
year-over-year
- Reported full year net income of $178.2 million ($4.97 earnings
per diluted share)
- Reported net income includes the effect of a $79.3 million
pre-tax charge related to non-cash impairment charges and a $10.0
million pre-tax charge to gross profit related to inventory
valuation adjustments, offset partially by a net $9.3 million
pre-tax gain in SG&A expenses (collectively, these items are
partially offset by a $19.9 million tax benefit on the above net
charges), and a one-time income tax charge of $5.8 million related
to certain non-deductible tax items
- Excluding these items, adjusted net income* was $244.1 million
($6.81 adjusted earnings per diluted share*)
- Total SG&A expenses as a percentage of gross profit of
71.3% (64.6% on a Franchised Dealerships Segment basis)
- Adjusted SG&A expenses as a percentage of gross profit* of
71.4% (65.6% on a Franchised Dealerships Segment basis)
- Franchised Dealerships Segment revenues of $11.8 billion, up 3%
year-over-year; Franchised Dealerships Segment gross profit of $2.0
billion, down 4% year-over-year
- EchoPark Segment revenues of $2.4 billion, down 1%
year-over-year; EchoPark Segment gross profit of $161.8 million,
down 8% year-over-year; EchoPark Segment retail used vehicle unit
sales volume of 73,676 units, up 15% year-over-year
- Reported EchoPark Segment loss (defined as loss before taxes
and impairment charges) of $132.4 million; adjusted EchoPark
Segment loss* of $112.8 million; EchoPark Segment adjusted EBITDA*
loss of $83.0 million, a 21% improvement year-over-year
- Full year EchoPark Segment adjusted EBITDA* loss includes: a
$35.3 million loss related to stores closed during 2023; and a $5.1
million loss related to the Northwest Motorsport stores closed
after the end of the fiscal year in January 2024
- During 2023, Sonic repurchased approximately 3.3 million shares
of its Class A Common Stock, or 9% of shares outstanding at
December 31, 2022, for an aggregate purchase price of approximately
$177.6 million
* 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
fourth quarter, delivering financial results that reflect our
ability to leverage our diversified business model to adapt to
rapidly changing market dynamics. During the quarter, we continued
to realize the expected benefits of the strategic adjustments to
our EchoPark business model, which showed improvement in
year-over-year losses to help offset continued margin normalization
in the franchised dealership segment. We remain confident that we
have the right strategy, the right people, and the right culture to
continue to grow our business and create long-term value for our
stakeholders.”
Jeff Dyke, President of Sonic Automotive, commented, “While
consumer affordability and used vehicle sourcing challenges
persist, our EchoPark results in the fourth quarter demonstrate our
team's valuable industry experience and the adaptability of our
innovative EchoPark model. Based on recent performance and market
trends, we remain confident in our path to achieve breakeven
EchoPark segment adjusted EBITDA* in the first quarter of 2024, and
expect to resume our disciplined long-term growth plans for
EchoPark once used vehicle market conditions improve.”
Heath Byrd, Chief Financial Officer of Sonic Automotive, added,
“Our diversified cash flow streams continued to benefit our overall
financial position in the fourth quarter. As of December 31, 2023,
we had $846 million of total liquidity, including $374 million in
cash and floor plan deposits on hand. We believe we remain
well-positioned to adapt to evolving market conditions and position
the Company for success in 2024 and beyond.”
Fourth Quarter 2023 Segment
Highlights
The financial measures discussed below are results for the
fourth quarter of 2023 with comparisons made to the fourth quarter
of 2022, unless otherwise noted.
- Franchised Dealerships Segment operating results include:
- Same store revenues up 2%; same store gross profit down 6%
- Same store retail new vehicle unit sales volume up 10%; same
store retail new vehicle gross profit per unit down 30%, to
$4,279
- Same store retail used vehicle unit sales volume down 7%; same
store retail used vehicle gross profit per unit down 1%, to
$1,433
- Same store parts, service and collision repair (“Fixed
Operations”) gross profit up 7%; same store customer pay gross
profit up 9%; same store warranty gross profit up 6%; same store
Fixed Operations gross margin up 30 basis points, to 49.9%
- Same store finance and insurance ("F&I") gross profit down
1%; same store F&I gross profit per retail unit of $2,334, down
3%
- On a trailing quarter cost of sales basis, the Franchised
Dealerships Segment had 37 days’ supply of new vehicle inventory
(including in-transit) and 29 days’ supply of used vehicle
inventory
- EchoPark Segment operating results include:
- Revenues of $556.6 million, down 6% year-over-year; gross
profit of $42.8 million, up 5% year-over-year
- Retail used vehicle unit sales volume of 17,562, up 1%
year-over-year
- Segment loss of $15.9 million and adjusted EBITDA* loss of $9.1
million
- EchoPark Segment stores closed prior to the fourth quarter
incurred a $1.1 million segment loss and a $0.9 million adjusted
EBITDA* loss during the fourth quarter, respectively
- Northwest Motorsport stores closed after the end of the fourth
quarter in January 2024 incurred a $1.8 million segment loss and a
$1.3 million adjusted EBITDA* loss, respectively, in the fourth
quarter
- On a trailing quarter cost of sales basis, the EchoPark Segment
had 36 days’ supply of used vehicle inventory
- Powersports Segment operating results include:
- Revenues of $27.2 million, gross profit of $7.0 million, gross
margin of 25.6%
- Segment loss of $3.5 million and adjusted EBITDA* loss of $2.4
million
* Please refer to the discussion and reconciliation of Non-GAAP
Financial Measures below.
Full Year 2023 Segment
Highlights
The financial measures discussed below are results for the full
year 2023 with comparisons made to the full year 2022, unless
otherwise noted.
- Franchised Dealerships Segment operating results include:
- Same store revenues up 3%; same store gross profit down 4%
- Same store retail new vehicle unit sales volume up 8%; same
store retail new vehicle gross profit per unit down 27%, to
$4,849
- Same store retail used vehicle unit sales volume down 7%; same
store retail used vehicle gross profit per unit up 1%, to
$1,630
- Same store Fixed Operations gross profit up 9%; same store
customer pay gross profit up 11%; same store warranty gross profit
up 7%; same store Fixed Operations gross margin up 10 basis points,
to 49.6%
- Same store F&I gross profit flat year-over-year; same store
F&I gross profit per retail unit of $2,411, flat
year-over-year
- EchoPark Segment operating results include:
- Revenues of $2.4 billion, down 1% year-over-year; gross profit
of $161.8 million, down 8% year-over-year
- Retail used vehicle unit sales volume of 73,676, up 15%
year-over-year
- Reported segment loss of $132.5 million, adjusted segment loss*
of $112.8 million, and adjusted EBITDA* loss of $83.0 million
- EchoPark Segment stores closed during 2023 incurred a $30.3
million reported segment loss and a $35.3 million adjusted EBITDA*
loss during the fiscal year, respectively
- Northwest Motorsport stores closed after the end of the fiscal
year in January 2024 incurred a $6.7 million segment loss and a
$5.1 million adjusted EBITDA* loss, respectively, for the full
year
- Powersports Segment operating results include:
- Revenues of $163.2 million, gross profit of $50.3 million,
gross margin of 30.9%
- Segment income of $5.7 million and adjusted EBITDA* of $10.8
million
- Year-over-year comparative financial results are not meaningful
due to the timing of acquisitions (seven stores acquired in August
2022 and five stores acquired in February 2023)
* Please refer to the discussion and reconciliation of Non-GAAP
Financial Measures below.
Dividend
Sonic’s Board of Directors approved a quarterly cash dividend of
$0.30 per share, payable on April 15, 2024 to all stockholders of
record on March 15, 2024.
Fourth 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
(877) 407-8289 (domestic) or +1 (201) 689-8341 (international) and
ask to be connected to the Sonic Automotive Fourth 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
Charlotte, North Carolina, is on a quest to become the most
valuable automotive retailer and service brand in America. Our
Company culture thrives on creating, innovating, and providing
industry-leading guest experiences, driven by strategic investments
in technology, teammates, and ideas that ultimately fulfill
ownership dreams, enrich lives, and deliver happiness to our guests
and teammates. As one of the largest automotive and powersports
retailers in America, we are committed to delivering on this goal
while pursuing expansive growth and taking progressive measures to
be the leader in these categories. Our new platforms, programs, and
people are set to drive the next generation of automotive and
powersports experiences. More information about Sonic Automotive
can be found at www.sonicautomotive.com and
ir.sonicautomotive.com.
About EchoPark
Automotive
EchoPark Automotive is one of the most comprehensive retailers
of nearly new pre-owned vehicles in America today. Our unique
business model offers a best-in-class shopping experience and
utilizes one of the most innovative technology-enabled sales
strategies in our industry. Our approach provides a personalized
and proven guest-centric buying process that consistently delivers
award-winning guest experiences and superior value to car buyers
nationwide, with savings of up to $3,000 versus the competition.
Consumers have responded by putting EchoPark among the top national
pre-owned vehicle retailers in products, sales, and service, while
receiving the 2023 Consumer Satisfaction Award from DealerRater.
EchoPark’s mission is in the name: Every Car, Happy Owner. This
drives the experience for guests and differentiates EchoPark from
the competition. More information about EchoPark Automotive can be
found at www.echopark.com.
Forward-Looking
Statements
Included herein are forward-looking statements, including
statements regarding 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, 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 December
31,
Better / (Worse)
Twelve Months Ended December
31,
Better / (Worse)
2023
2022
% Change
2023
2022
% Change
(In millions, except per share
amounts)
Revenues:
Retail new vehicles
$
1,680.2
$
1,555.3
8
%
$
6,304.6
$
5,622.6
12
%
Fleet new vehicles
21.8
29.3
(26
)%
92.2
99.4
(7
)%
Total new vehicles
1,702.0
1,584.6
7
%
6,396.8
5,722.0
12
%
Used vehicles
1,222.4
1,341.1
(9
)%
5,213.6
5,515.4
(5
)%
Wholesale vehicles
62.6
80.0
(22
)%
318.8
484.9
(34
)%
Total vehicles
2,987.0
3,005.7
(1
)%
11,929.2
11,722.3
2
%
Parts, service and collision repair
431.9
411.1
5
%
1,759.5
1,599.7
10
%
Finance, insurance and other, net
166.0
173.8
(4
)%
683.7
679.1
1
%
Total revenues
3,584.9
3,590.6
—
%
14,372.4
14,001.1
3
%
Cost of sales:
Retail new vehicles
(1,555.7
)
(1,390.7
)
(12
)%
(5,769.2
)
(4,959.8
)
(16
)%
Fleet new vehicles
(20.9
)
(27.5
)
24
%
(88.2
)
(94.5
)
7
%
Total new vehicles
(1,576.6
)
(1,418.2
)
(11
)%
(5,857.4
)
(5,054.3
)
(16
)%
Used vehicles
(1,184.9
)
(1,305.6
)
9
%
(5,062.4
)
(5,334.6
)
5
%
Wholesale vehicles
(65.8
)
(83.7
)
21
%
(321.4
)
(488.0
)
34
%
Total vehicles
(2,827.3
)
(2,807.5
)
(1
)%
(11,241.2
)
(10,876.9
)
(3
)%
Parts, service and collision repair
(216.5
)
(207.0
)
(5
)%
(885.5
)
(807.2
)
(10
)%
Total cost of sales
(3,043.8
)
(3,014.5
)
(1
)%
(12,126.7
)
(11,684.1
)
(4
)%
Gross profit
541.1
576.1
(6
)%
2,245.7
2,317.0
(3
)%
Selling, general and administrative
expenses
(386.3
)
(366.3
)
(5
)%
(1,600.5
)
(1,555.1
)
(3
)%
Impairment charges
(16.7
)
(320.4
)
95
%
(79.3
)
(320.4
)
75
%
Depreciation and amortization
(36.6
)
(33.5
)
(9
)%
(142.3
)
(127.5
)
(12
)%
Operating income (loss)
101.5
(144.1
)
170
%
423.6
314.0
35
%
Other income (expense):
Interest expense, floor plan
(18.4
)
(13.6
)
(35
)%
(67.2
)
(34.3
)
(96
)%
Interest expense, other, net
(28.3
)
(24.9
)
(14
)%
(114.6
)
(89.9
)
(27
)%
Other income (expense), net
(0.1
)
0.1
(200
)%
0.1
0.2
(50
)%
Total other income (expense)
(46.8
)
(38.4
)
(22
)%
(181.7
)
(124.0
)
(47
)%
Income (loss) before taxes
54.7
(182.5
)
130
%
241.9
190.0
27
%
Provision for income taxes - benefit
(expense)
(16.0
)
(8.4
)
(90
)%
(63.7
)
(101.5
)
37
%
Net income (loss)
$
38.7
$
(190.9
)
120
%
$
178.2
$
88.5
101
%
Basic earnings (loss) per common share
$
1.14
$
(5.22
)
122
%
$
5.09
$
2.29
122
%
Basic weighted-average common shares
outstanding
33.9
36.5
7
%
35.0
38.7
9
%
Diluted earnings (loss) per common
share
$
1.11
$
(5.22
)
121
%
$
4.97
$
2.23
123
%
Diluted weighted-average common shares
outstanding(1)
34.8
36.5
5
%
35.9
39.7
10
%
Dividends declared per common share
$
0.30
$
0.28
7
%
$
1.16
$
1.03
13
%
(1) Basic weighted-average common shares
outstanding used for the three months ended December 31, 2022 due
to the net loss on a reported GAAP basis.
Franchised Dealerships Segment -
Reported
Three Months Ended December
31,
Better / (Worse)
Twelve Months Ended December
31,
Better / (Worse)
2023
2022
% Change
2023
2022
% Change
(In millions, except unit and
per unit data)
Revenues:
Retail new vehicles
$
1,664.1
$
1,534.5
8
%
$
6,215.0
$
5,581.6
11
%
Fleet new vehicles
21.8
29.4
(26
)%
92.2
99.4
(7
)%
Total new vehicles
1,685.9
1,563.9
8
%
6,307.2
5,681.0
11
%
Used vehicles
727.5
823.4
(12
)%
3,050.3
3,391.5
(10
)%
Wholesale vehicles
39.3
52.6
(25
)%
204.5
314.0
(35
)%
Total vehicles
2,452.7
2,439.9
1
%
9,562.0
9,386.5
2
%
Parts, service and collision repair
425.2
404.8
5
%
1,714.2
1,588.0
8
%
Finance, insurance and other, net
123.2
128.0
(4
)%
498.6
510.1
(2
)%
Total revenues
3,001.1
2,972.7
1
%
11,774.8
11,484.6
3
%
Gross Profit:
Retail new vehicles
122.2
160.8
(24
)%
518.7
655.3
(21
)%
Fleet new vehicles
0.9
1.8
(50
)%
4.0
4.9
(18
)%
Total new vehicles
123.1
162.6
(24
)%
522.7
660.2
(21
)%
Used vehicles
35.1
38.4
(9
)%
162.9
174.4
(7
)%
Wholesale vehicles
(2.7
)
(3.2
)
16
%
(3.3
)
(6.3
)
48
%
Total vehicles
155.5
197.8
(21
)%
682.3
828.3
(18
)%
Parts, service and collision repair
212.6
200.9
6
%
852.7
786.7
8
%
Finance, insurance and other, net
123.2
128.0
(4
)%
498.6
510.1
(2
)%
Total gross profit
491.3
526.7
(7
)%
2,033.6
2,125.1
(4
)%
Selling, general and administrative
expenses
(329.1
)
(298.1
)
(10
)%
(1,314.6
)
(1,273.0
)
(3
)%
Impairment charges
(1.0
)
(115.5
)
99
%
(1.0
)
(115.5
)
99
%
Depreciation and amortization
(29.4
)
(26.0
)
(13
)%
(112.3
)
(101.8
)
(10
)%
Operating income (loss)
131.8
87.1
51
%
605.7
634.8
(5
)%
Other income (expense):
Interest expense, floor plan
(14.6
)
(9.8
)
(49
)%
(49.2
)
(23.6
)
(108
)%
Interest expense, other, net
(27.5
)
(23.4
)
(18
)%
(109.7
)
(85.0
)
(29
)%
Other income (expense), net
0.1
—
100
%
0.2
(0.1
)
300
%
Total other income (expense)
(42.0
)
(33.2
)
(27
)%
(158.7
)
(108.7
)
(46
)%
Income (loss) before taxes
89.8
53.9
67
%
447.0
526.1
(15
)%
Add: Impairment charges
1.0
115.5
(99
)%
1.0
115.5
(99
)%
Segment income (loss)
$
90.8
$
169.4
(46
)%
$
448.0
$
641.6
(30
)%
Unit Sales Volume:
Retail new vehicles
28,491
26,239
9
%
107,257
99,424
8
%
Fleet new vehicles
500
661
(24
)%
2,000
2,115
(5
)%
Total new vehicles
28,991
26,900
8
%
109,257
101,539
8
%
Used vehicles
24,365
26,631
(9
)%
100,210
108,512
(8
)%
Wholesale vehicles
4,440
5,616
(21
)%
20,602
24,052
(14
)%
Retail new & used vehicles
52,856
52,870
—
%
207,467
207,936
—
%
Used:New Ratio
0.86
1.01
(15
)%
0.93
1.09
(15
)%
Gross Profit Per Unit:
Retail new vehicles
$
4,289
$
6,130
(30
)%
$
4,836
$
6,591
(27
)%
Fleet new vehicles
$
1,780
$
2,642
(33
)%
$
1,989
$
2,292
(13
)%
New vehicles
$
4,246
$
6,044
(30
)%
$
4,784
$
6,502
(26
)%
Used vehicles
$
1,440
$
1,442
—
%
$
1,626
$
1,607
1
%
Finance, insurance and other, net
$
2,330
$
2,421
(4
)%
$
2,403
$
2,453
(2
)%
Note: Reported Franchised Dealerships
Segment results include (i) same store results from the “Franchised
Dealerships Segment - Same Store” table below and (ii) the effects
of acquisitions, open points, dispositions and holding company
impacts for the periods reported. All currently operating
franchised dealership stores are included within the same store
group as of the first full month following the first anniversary of
the store’s opening or acquisition.
Franchised Dealerships Segment - Same
Store
Three Months Ended December
31,
Better / (Worse)
Twelve Months Ended December
31,
Better / (Worse)
2023
2022
% Change
2023
2022
% Change
(In millions, except unit and
per unit data)
Revenues:
Retail new vehicles
$
1,654.9
$
1,513.6
9
%
$
6,145.3
$
5,508.8
12
%
Fleet new vehicles
21.9
29.3
(25
)%
92.1
99.4
(7
)%
Total new vehicles
1,676.8
1,542.9
9
%
6,237.4
5,608.2
11
%
Used vehicles
724.6
810.7
(11
)%
3,012.1
3,334.4
(10
)%
Wholesale vehicles
39.2
51.1
(23
)%
202.2
309.1
(35
)%
Total vehicles
2,440.6
2,404.7
1
%
9,451.7
9,251.7
2
%
Parts, service and collision repair
423.9
399.0
6
%
1,696.4
1,565.8
8
%
Finance, insurance and other, net
122.8
124.4
(1
)%
493.6
494.0
—
%
Total revenues
2,987.3
2,928.1
2
%
11,641.7
11,311.5
3
%
Gross Profit:
Retail new vehicles
121.4
158.8
(24
)%
513.5
647.5
(21
)%
Fleet new vehicles
0.9
1.7
(47
)%
4.0
4.8
(17
)%
Total new vehicles
122.2
160.5
(24
)%
517.4
652.3
(21
)%
Used vehicles
34.8
37.8
(8
)%
161.1
171.3
(6
)%
Wholesale vehicles
(2.6
)
(3.1
)
16
%
(2.5
)
(5.5
)
55
%
Total vehicles
154.4
195.2
(21
)%
676.0
818.1
(17
)%
Parts, service and collision repair
211.5
197.8
7
%
842.2
774.8
9
%
Finance, insurance and other, net
122.8
124.4
(1
)%
493.6
494.0
—
%
Total gross profit
$
488.7
$
517.4
(6
)%
$
2,011.8
$
2,086.9
(4
)%
Unit Sales Volume:
Retail new vehicles
28,357
25,796
10
%
105,891
97,772
8
%
Fleet new vehicles
500
661
(24
)%
2,000
2,115
(5
)%
Total new vehicles
28,857
26,457
9
%
107,891
99,887
8
%
Used vehicles
24,269
26,128
(7
)%
98,841
106,320
(7
)%
Wholesale vehicles
4,429
5,466
(19
)%
20,333
23,630
(14
)%
Retail new & used vehicles
52,626
51,924
1
%
204,732
204,092
—
%
Used:New Ratio
0.86
1.01
(15
)%
0.93
1.09
(15
)%
Gross Profit Per Unit:
Retail new vehicles
$
4,279
$
6,155
(30
)%
$
4,849
$
6,623
(27
)%
Fleet new vehicles
$
1,780
$
2,642
(33
)%
$
1,989
$
2,292
(13
)%
New vehicles
$
4,236
$
6,067
(30
)%
$
4,796
$
6,531
(27
)%
Used vehicles
$
1,433
$
1,447
(1
)%
$
1,630
$
1,611
1
%
Finance, insurance and other, net
$
2,334
$
2,396
(3
)%
$
2,411
$
2,421
—
%
Note: All currently operating franchised
dealership stores are included within the same store group as of
the first full month following the first anniversary of the store’s
opening or acquisition.
EchoPark Segment - Reported
Three Months Ended December
31,
Better / (Worse)
Twelve Months Ended December
31,
Better / (Worse)
2023
2022
% Change
2023
2022
% Change
(In millions, except unit and
per unit data)
Revenues:
Retail new vehicles
$
—
$
2.0
(100
)%
$
1.0
$
9.2
(89
)%
Used vehicles
492.5
515.5
(4
)%
2,143.8
2,116.8
1
%
Wholesale vehicles
22.6
27.3
(17
)%
111.7
170.6
(35
)%
Total vehicles
515.1
544.8
(5
)%
2,256.5
2,296.6
(2
)%
Finance, insurance and other, net
41.5
44.5
(7
)%
177.9
166.4
7
%
Total revenues
556.6
589.3
(6
)%
2,434.4
2,463.0
(1
)%
Gross Profit:
Retail new vehicles
—
0.2
(100
)%
0.1
1.1
(91
)%
Used vehicles
1.7
(3.6
)
147
%
(17.1
)
4.4
(489
)%
Wholesale vehicles
(0.4
)
(0.3
)
(33
)%
0.9
3.2
(72
)%
Total vehicles
1.3
(3.7
)
135
%
(16.1
)
8.7
(285
)%
Finance, insurance and other, net
41.5
44.5
(7
)%
177.9
166.4
7
%
Total gross profit
42.8
40.8
5
%
161.8
175.1
(8
)%
Selling, general and administrative
expenses
(48.0
)
(62.3
)
23
%
(247.0
)
(269.8
)
8
%
Impairment charges
(15.7
)
(204.9
)
92
%
(78.3
)
(204.9
)
62
%
Depreciation and amortization
(6.2
)
(7.0
)
11
%
(26.6
)
(24.7
)
(8
)%
Operating income (loss)
(27.1
)
(233.4
)
88
%
(190.1
)
(324.3
)
41
%
Other income (expense):
Interest expense, floor plan
(3.8
)
(3.9
)
3
%
(17.4
)
(10.7
)
(63
)%
Interest expense, other, net
(0.7
)
(0.9
)
22
%
(3.2
)
(3.9
)
18
%
Other income (expense), net
—
—
—
%
(0.1
)
0.1
(200
)%
Total other income (expense)
(4.5
)
(4.8
)
6
%
(20.7
)
(14.5
)
(43
)%
Income (loss) before taxes
(31.6
)
(238.2
)
87
%
(210.8
)
(338.8
)
38
%
Add: Impairment charges
15.7
204.9
(92
)%
78.3
204.9
(62
)%
Segment income (loss)
$
(15.9
)
$
(33.3
)
52
%
$
(132.5
)
$
(133.9
)
1
%
Unit Sales Volume:
Retail new vehicles
—
26
(100
)%
11
152
(93
)%
Used vehicles
17,562
17,435
1
%
73,676
64,107
15
%
Wholesale vehicles
2,621
2,444
7
%
11,512
11,236
2
%
Gross Profit Per Unit:
Total used vehicle and F&I
$
2,461
$
2,340
5
%
$
2,183
$
2,657
(18
)%
EchoPark Segment - Same Market
Three Months Ended December
31,
Better / (Worse)
Twelve Months Ended December
31,
Better / (Worse)
2023
2022
% Change
2023
2022
% Change
(In millions, except unit and
per unit data)
Revenues:
Used vehicles
426.9
306.0
40
%
1,754.7
1,129.2
55
%
Wholesale vehicles
14.9
10.8
38
%
73.9
83.9
(12
)%
Total vehicles
441.8
316.8
39
%
1,828.6
1,213.0
51
%
Finance, insurance and other, net
39.7
30.7
29
%
160.1
101.1
58
%
Total revenues
481.5
347.5
39
%
1,988.7
1,314.1
51
%
Gross Profit:
Used vehicles
(0.4
)
(3.4
)
88
%
(5.2
)
(17.2
)
70
%
Wholesale vehicles
(0.4
)
(0.1
)
(300
)%
0.7
1.8
(61
)%
Total vehicles
(0.8
)
(3.5
)
77
%
(4.5
)
(15.4
)
71
%
Finance, insurance and other, net
39.7
30.7
29
%
160.1
101.1
58
%
Total gross profit
$
38.9
$
27.2
43
%
$
155.6
$
85.7
82
%
Unit Sales Volume:
Used vehicles
16,817
11,856
42
%
65,969
39,933
65
%
Wholesale vehicles
2,387
1,663
44
%
9,765
7,497
30
%
Gross Profit Per Unit:
Total used vehicle and F&I
$
2,338
$
2,310
1
%
$
2,348
$
2,100
12
%
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 December
31,
Better / (Worse)
Twelve Months Ended December
31,
Better / (Worse)
2023
2022
% Change
2023
2022
% Change
(In millions, except unit and
per unit data)
Revenues:
Retail new vehicles
$
16.1
$
18.8
(14
)%
$
88.6
$
31.8
179
%
Used vehicles
2.4
2.1
14
%
19.5
7.1
175
%
Wholesale vehicles
0.7
0.1
600
%
2.6
0.3
767
%
Total vehicles
19.2
21.0
(9
)%
110.7
39.2
182
%
Parts, service and collision repair
6.7
6.3
6
%
45.3
11.7
287
%
Finance, insurance and other, net
1.3
1.3
—
%
7.2
2.6
177
%
Total revenues
27.2
28.6
(5
)%
163.2
53.5
205
%
Gross Profit:
Retail new vehicles
2.3
3.6
(36
)%
16.6
6.4
159
%
Used vehicles
0.7
0.7
—
%
5.4
2.0
170
%
Wholesale vehicles
(0.1
)
—
(100
)%
(0.2
)
—
(100
)%
Total vehicles
2.9
4.3
(33
)%
21.8
8.4
160
%
Parts, service and collision repair
2.8
3.1
(10
)%
21.3
5.8
267
%
Finance, insurance and other, net
1.3
1.3
—
%
7.2
2.6
177
%
Total gross profit
7.0
8.7
(20
)%
50.3
16.8
199
%
Selling, general and administrative
expenses
(9.2
)
(5.9
)
(56
)%
(38.9
)
(12.3
)
(216
)%
Impairment charges
—
—
—
%
—
—
—
%
Depreciation and amortization
(1.0
)
(0.6
)
(67
)%
(3.4
)
(1.0
)
(240
)%
Operating income (loss)
(3.2
)
2.2
(245
)%
8.0
3.5
129
%
Other income (expense):
Interest expense, floor plan
—
—
—
%
(0.6
)
—
(100
)%
Interest expense, other, net
(0.2
)
(0.6
)
67
%
(1.7
)
(1.0
)
(70
)%
Other income (expense), net
(0.1
)
0.2
(150
)%
—
0.2
(100
)%
Total other income (expense)
(0.3
)
(0.4
)
25
%
(2.3
)
(0.8
)
(188
)%
Income (loss) before taxes
(3.5
)
1.8
(294
)%
5.7
2.7
111
%
Add: impairment charges
—
—
—
%
—
—
—
%
Segment income (loss)
$
(3.5
)
$
1.8
(294
)%
$
5.7
$
2.7
111
%
Unit Sales Volume:
Retail new vehicles
948
1,013
(6
)%
4,842
1,592
204
%
Used vehicles
289
237
22
%
2,261
590
283
%
Wholesale vehicles
66
34
94
%
216
35
517
%
Gross Profit Per Unit:
Retail new vehicles
$
2,429
$
3,535
(31
)%
$
3,435
$
3,974
(14
)%
Used vehicles
$
2,307
$
2,860
(19
)%
$
2,394
$
3,349
(29
)%
Finance, insurance and other, net
$
1,066
$
1,026
4
%
$
1,017
$
1,205
(16
)%
Powersports Segment - Same
Store
Three Months Ended December
31,
Better / (Worse)
Twelve Months Ended December
31,
Better / (Worse)
2023
2022
% Change
2023
2022
% Change
(In millions, except unit and
per unit data)
Revenues:
Retail new vehicles
$
15.9
$
18.8
(15
)%
$
24.4
$
29.5
(17
)%
Used vehicles
1.7
2.1
(19
)%
5.2
6.9
(25
)%
Wholesale vehicles
0.3
0.1
200
%
0.7
0.2
250
%
Total vehicles
17.9
21.0
(15
)%
30.3
36.6
(17
)%
Parts, service and collision repair
5.2
6.3
(17
)%
9.6
11.0
(13
)%
Finance, insurance and other, net
1.3
1.3
—
%
2.1
2.5
(16
)%
Total revenues
24.4
28.6
(15
)%
42.0
50.1
(16
)%
Gross Profit:
Retail new vehicles
2.2
3.6
(39
)%
3.7
5.9
(37
)%
Used vehicles
0.4
0.7
(43
)%
1.1
1.9
(42
)%
Wholesale vehicles
—
—
—
%
(0.1
)
(0.1
)
—
%
Total vehicles
2.6
4.3
(40
)%
4.7
7.7
(39
)%
Parts, service and collision repair
2.2
3.1
(29
)%
4.3
5.5
(22
)%
Finance, insurance and other, net
1.3
1.3
—
%
2.1
2.5
(16
)%
Total gross profit
$
6.1
$
8.7
(30
)%
$
11.1
$
15.7
(29
)%
Unit Sales Volume:
Retail new vehicles
932
1,013
(8
)%
1,358
1,480
(8
)%
Used vehicles
201
237
(15
)%
477
563
(15
)%
Wholesale vehicles
8
34
(76
)%
17
35
(51
)%
Retail new & used vehicles
1,133
1,250
(9
)%
1,835
2,043
(10
)%
Used:New Ratio
0.22
0.23
(4
)%
0.35
0.38
(8
)%
Gross Profit Per Unit:
Retail new vehicles
$
2,407
$
3,535
(32
)%
$
2,707
$
3,989
(32
)%
Used vehicles
$
2,195
$
2,860
(23
)%
$
2,337
$
3,359
(30
)%
Finance, insurance and other, net
$
1,103
$
1,026
8
%
$
1,161
$
1,209
(4
)%
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 December
31,
Better / (Worse)
2023
2022
Change
% Change
(In millions)
Reported:
Compensation
$
240.5
$
240.8
$
0.3
—
%
Advertising
20.8
22.6
1.8
8
%
Rent
11.5
12.7
1.2
9
%
Other
113.5
90.2
(23.3
)
(26
)%
Total SG&A expenses
$
386.3
$
366.3
$
(20.0
)
(5
)%
Adjustments:
Acquisition and disposition-related gain
(loss)
$
—
$
9.1
Total SG&A adjustments
$
—
$
9.1
Adjusted:
Total adjusted SG&A expenses
$
386.3
$
375.4
$
(10.9
)
(3
)%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
44.4
%
41.8
%
(270
)
bps
Advertising
3.8
%
3.9
%
10
bps
Rent
2.1
%
2.2
%
10
bps
Other
21.1
%
15.7
%
(540
)
bps
Total SG&A expenses as a % of gross
profit
71.4
%
63.6
%
(780
)
bps
Adjustments:
Acquisition and disposition-related gain
(loss)
—
%
1.6
%
Total effect of adjustments
—
%
1.6
%
Adjusted:
Total adjusted SG&A expenses as a % of
gross profit
71.4
%
65.2
%
(620
)
bps
Reported:
Total gross profit
$
541.1
$
576.1
$
(35.0
)
(6
)%
Non-GAAP Reconciliation - Consolidated
- SG&A Expenses (Continued)
Twelve Months Ended December
31,
Better / (Worse)
2023
2022
Change
% Change
(In millions)
Reported:
Compensation
$
1,016.3
$
1,014.8
$
(1.5
)
—
%
Advertising
92.2
95.4
3.2
3
%
Rent
46.1
51.0
4.9
10
%
Other
445.9
393.9
(52.0
)
(13
)%
Total SG&A expenses
$
1,600.5
$
1,555.1
$
(45.4
)
(3
)%
Adjustments:
Acquisition and disposition-related gain
(loss)
$
20.7
$
9.1
Hail and storm damage charges
(1.9
)
—
Lease exit charges
(4.3
)
—
Severance and long-term compensation
charges
(5.1
)
(4.4
)
Total SG&A adjustments
$
9.4
$
4.7
Adjusted:
Total adjusted SG&A expenses
$
1,609.9
$
1,559.8
$
(50.1
)
(3
)%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
45.3
%
43.8
%
(150
)
bps
Advertising
4.1
%
4.1
%
—
bps
Rent
2.1
%
2.2
%
10
bps
Other
19.8
%
17.0
%
(280
)
bps
Total SG&A expenses as a % of gross
profit
71.3
%
67.1
%
(420
)
bps
Adjustments:
Acquisition and disposition-related gain
(loss)
0.2
%
0.4
%
Hail and storm damage charges
—
%
—
%
Lease exit charges
—
%
—
%
Severance and long-term compensation
charges
(0.1
)%
(0.2
)%
Total effect of adjustments
0.1
%
0.2
%
Adjusted:
Total adjusted SG&A expenses as a % of
gross profit
71.4
%
67.3
%
(410
)
bps
Reported:
Total gross profit
$
2,245.7
$
2,317.0
$
(71.3
)
(3
)%
Adjustments:
Used vehicle inventory adjustment
$
10.0
$
—
Total adjustments
$
10.0
$
—
Adjusted:
Total adjusted gross profit
$
2,255.7
$
2,317.0
$
(61.3
)
(3
)%
Non-GAAP Reconciliation - Franchised
Dealerships Segment - SG&A Expenses
Three Months Ended December
31,
Better / (Worse)
2023
2022
Change
% Change
(In millions)
Reported:
Compensation
$
206.9
$
200.8
$
(6.1
)
(3
)%
Advertising
10.8
10.7
(0.1
)
(1
)%
Rent
10.5
10.5
—
—
%
Other
100.9
76.1
(24.8
)
(33
)%
Total SG&A expenses
$
329.1
$
298.1
$
(31.0
)
(10
)%
Adjustments:
Acquisition and disposition-related gain
(loss)
$
—
$
9.1
Total SG&A adjustments
$
—
$
9.1
Adjusted:
Total adjusted SG&A expenses
$
329.1
$
307.2
$
(21.9
)
(7
)%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
42.1
%
38.1
%
(400
)
bps
Advertising
2.2
%
2.0
%
(20
)
bps
Rent
2.1
%
2.0
%
(10
)
bps
Other
20.6
%
14.5
%
(610
)
bps
Total SG&A expenses as a % of gross
profit
67.0
%
56.6
%
(1,040
)
bps
Adjustments:
Acquisition and disposition-related gain
(loss)
—
%
1.7
%
Total effect of adjustments
—
%
1.7
%
Adjusted:
Total adjusted SG&A expenses as a % of
gross profit
67.0
%
58.3
%
(870
)
bps
Reported:
Total gross profit
$
491.3
$
526.7
$
(35.4
)
(7
)%
Non-GAAP Reconciliation - Franchised
Dealerships Segment - SG&A Expenses (Continued)
Twelve Months Ended December
31,
Better / (Worse)
2023
2022
Change
% Change
(In millions)
Reported:
Compensation
$
856.6
$
858.0
$
1.4
—
%
Advertising
40.5
36.9
(3.6
)
(10
)%
Rent
40.3
42.4
2.1
5
%
Other
377.2
335.6
(41.6
)
(12
)%
Total SG&A expenses
$
1,314.6
$
1,272.9
$
(41.7
)
(3
)%
Adjustments:
Acquisition and disposition-related gain
(loss)
$
20.9
$
9.1
Hail and storm damage charges
(1.9
)
—
Long-term compensation charges
—
(4.4
)
Total SG&A adjustments
$
19.0
$
4.7
Adjusted:
Total adjusted SG&A expenses
$
1,333.6
$
1,277.6
$
(56.0
)
(4
)%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
42.1
%
40.4
%
(170
)
bps
Advertising
2.0
%
1.7
%
(30
)
bps
Rent
2.0
%
2.0
%
—
bps
Other
18.5
%
15.8
%
(270
)
bps
Total SG&A expenses as a % of gross
profit
64.6
%
59.9
%
(470
)
bps
Adjustments:
Acquisition and disposition-related gain
(loss)
1.1
%
0.4
%
Hail and storm damage charges
(0.1
)%
—
%
Long-term compensation charges
—
%
(0.2
)%
Total effect of adjustments
1.0
%
0.2
%
Adjusted:
Total adjusted SG&A expenses as a % of
gross profit
65.6
%
60.1
%
(550
)
bps
Reported:
Total gross profit
$
2,033.6
$
2,125.1
$
(91.5
)
(4
)%
Non-GAAP Reconciliation - EchoPark
Segment - SG&A Expenses
Three Months Ended December
31,
Better / (Worse)
2023
2022
Change
% Change
(In millions)
Reported:
Compensation
$
26.9
$
35.8
$
8.9
25
%
Advertising
9.6
11.6
2.0
17
%
Rent
1.0
2.2
1.2
55
%
Other
10.5
12.7
2.2
17
%
Total SG&A expenses
$
48.0
$
62.3
$
14.3
23
%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
62.8
%
87.9
%
2,510
bps
Advertising
22.5
%
28.4
%
590
bps
Rent
2.3
%
5.3
%
300
bps
Other
24.7
%
31.2
%
650
bps
Total SG&A expenses as a % of gross
profit
112.3
%
152.8
%
4,050
bps
Reported:
Total gross profit
$
42.8
$
40.8
$
2.0
5
%
Non-GAAP Reconciliation - EchoPark
Segment - SG&A Expenses (Continued)
Twelve Months Ended December
31,
Better / (Worse)
2023
2022
Change
% Change
(In millions)
Reported:
Compensation
$
132.0
$
148.0
$
16.0
11
%
Advertising
49.9
58.0
8.1
14
%
Rent
6.3
8.5
2.2
26
%
Other
58.8
55.3
(3.5
)
(6
)%
Total SG&A expenses
$
247.0
$
269.8
$
22.8
8
%
Adjustments:
Acquisition and disposition-related gain
(loss)
$
(0.3
)
$
—
Lease exit charges
(4.3
)
—
Severance and long-term compensation
charges
(5.1
)
—
Total SG&A adjustments
$
(9.7
)
$
—
Adjusted:
Total adjusted SG&A expenses
$
237.3
$
269.8
$
32.5
12
%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
81.6
%
84.5
%
290
bps
Advertising
30.9
%
33.1
%
220
bps
Rent
3.9
%
4.9
%
100
bps
Other
36.3
%
31.6
%
(470
)
bps
Total SG&A expenses as a % of gross
profit
152.7
%
154.1
%
140
bps
Adjustments:
Acquisition and disposition-related gain
(loss)
(0.4
)%
—
%
Hail and storm damage charges
—
%
—
%
Lease exit charges
(6.4
)%
—
%
Severance and long-term compensation
charges
(7.6
)%
—
%
Total effect of adjustments
(14.5
)%
—
%
Adjusted:
Total adjusted SG&A expenses as a % of
gross profit
138.2
%
154.1
%
1,590
bps
Reported:
Total gross profit
$
161.8
$
175.1
$
(13.3
)
(8
)%
Adjustments:
Used vehicle inventory adjustment
$
10.0
$
—
Total adjustments
$
10.0
$
—
Adjusted:
Total adjusted gross profit
$
171.8
$
175.1
$
(3.3
)
(2
)%
Non-GAAP Reconciliation - Powersports
Segment - SG&A Expenses
Three Months Ended December
31,
Better / (Worse)
2023
2022
Change
% Change
(In millions)
Reported:
Compensation
$
6.7
$
4.1
$
(2.6
)
(63
)%
Advertising
0.4
0.3
(0.1
)
(33
)%
Rent
—
—
—
—
%
Other
2.1
1.5
(0.6
)
(40
)%
Total SG&A expenses
$
9.2
$
5.9
$
(3.3
)
(56
)%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
96.2
%
47.9
%
(4,830
)
bps
Advertising
5.2
%
3.9
%
(130
)
bps
Rent
0.7
%
0.4
%
(30
)
bps
Other
29.5
%
16.2
%
(1,330
)
bps
Total SG&A expenses as a % of gross
profit
131.6
%
68.4
%
(6,320
)
bps
Reported:
Total gross profit
$
7.0
$
8.7
$
(1.7
)
(20
)%
Twelve Months Ended December
31,
Better / (Worse)
2023
2022
Change
% Change
(In millions)
Reported:
Compensation
$
27.7
$
8.9
$
(18.8
)
(211
)%
Advertising
1.8
0.6
(1.2
)
(200
)%
Rent
(0.5
)
—
0.5
100
%
Other
9.9
2.8
(7.1
)
(254
)%
Total SG&A expenses
$
38.9
$
12.3
$
(26.6
)
(216
)%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
55.0
%
52.9
%
(210
)
bps
Advertising
3.5
%
3.4
%
(10
)
bps
Rent
(1.0
)%
0.2
%
120
bps
Other
19.7
%
16.9
%
(280
)
bps
Total SG&A expenses as a % of gross
profit
77.2
%
73.4
%
(380
)
bps
Reported:
Total gross profit
$
50.3
$
16.8
$
33.5
199
%
Non-GAAP Reconciliation - Franchised
Dealerships Segment - Income (Loss) Before Taxes and Segment Income
(Loss)
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
% Change
2023
2022
% Change
(In millions)
Reported:
Income (loss) before taxes
$
89.8
$
53.9
67
%
$
447.0
$
526.1
(15
)%
Add: impairment charges
1.0
115.5
1.0
115.5
Segment income (loss)
$
90.8
$
169.4
(46
)%
$
448.0
$
641.6
(30
)%
Adjustments:
Acquisition and disposition-related (gain)
loss
$
—
$
(9.1
)
$
(20.9
)
$
(9.1
)
Hail and storm damage charges
—
—
1.9
—
Long-term compensation charges
—
—
—
4.4
Total pre-tax items of interest
$
—
$
(9.1
)
$
(19.0
)
$
(4.7
)
Adjusted:
Segment income (loss)
$
90.8
$
160.3
(43
)%
$
429.0
$
636.9
(33
)%
Non-GAAP Reconciliation - EchoPark
Segment - Income (Loss) Before Taxes and Segment Income
(Loss)
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
% Change
2023
2022
% Change
(In millions)
Reported:
Income (loss) before taxes
$
(31.6
)
$
(238.2
)
87
%
$
(210.8
)
$
(338.8
)
38
%
Add: impairment charges
15.7
204.9
78.3
204.9
Segment income (loss)
$
(15.9
)
$
(33.3
)
52
%
$
(132.5
)
$
(133.9
)
1
%
Adjustments:
Acquisition and disposition-related (gain)
loss
$
—
$
—
$
0.3
$
—
Lease exit charges
—
—
4.3
—
Severance and long-term compensation
charges
—
—
5.1
—
Used vehicle inventory valuation
adjustment
—
—
10.0
—
Total pre-tax adjustments
$
—
$
—
$
19.7
$
—
Adjusted:
Segment income (loss)
$
(15.9
)
$
(33.3
)
52
%
$
(112.8
)
$
(133.9
)
16
%
Non-GAAP Reconciliation - Powersports Segment - Income (Loss)
Before Taxes and Segment Income (Loss)
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
% Change
2023
2022
% Change
(In millions)
Reported:
Income (loss) before taxes
$
(3.5
)
$
1.8
(294
)%
$
5.7
$
2.7
111
%
Add: impairment charges
—
—
—
—
Segment income (loss)
$
(3.5
)
$
1.8
(294
)%
$
5.7
$
2.7
111
%
Non-GAAP Reconciliation - Consolidated
- Net Income (Loss) and Diluted Earnings (Loss) Per Share
Three Months Ended December
31, 2023
Three Months Ended December
31, 2022
Weighted-
Average
Shares
Net Income (Loss)
Per
Share
Amount
Weighted-
Average
Shares
Net Income (Loss)
Per
Share
Amount
(In millions, except per share
amounts)
Reported net income (loss), diluted
shares(1), and diluted earnings (loss) per share
34.8
$
38.7
$
1.11
36.5
$
(190.9
)
$
(5.22
)
Adjustments:
Acquisition and disposition-related (gain)
loss
$
—
$
(9.1
)
Impairment charges
16.7
320.4
Total pre-tax items of interest
$
16.7
$
311.3
Tax effect of above items
(4.3
)
(22.6
)
Non-recurring tax items
5.8
—
Adjusted net income (loss), diluted
shares, and diluted earnings (loss) per share
34.8
$
56.9
$
1.63
37.4
$
97.8
$
2.61
(1) Basic weighted-average common shares
outstanding used for the three months ended December 31, 2022 due
to the net loss on a reported GAAP basis.
Twelve Months Ended December
31, 2023
Twelve Months Ended December
31, 2022
Weighted-
Average
Shares
Net Income (Loss)
Per
Share
Amount
Weighted-
Average
Shares
Net Income (Loss)
Per
Share
Amount
(In millions, except per share
amounts)
Reported net income (loss), diluted
shares, and diluted earnings (loss) per share
35.9
$
178.2
$
4.97
39.7
$
88.5
$
2.23
Adjustments:
Acquisition and disposition-related (gain)
loss
$
(20.7
)
$
(9.1
)
Hail and storm damage charges
1.9
—
Impairment charges
79.3
320.4
Lease exit charges
4.3
—
Severance and long-term compensation
charges
5.1
4.4
Used vehicle inventory valuation
adjustment
10.0
—
Total pre-tax items of interest
$
79.9
$
315.7
Tax effect of above items
(19.9
)
(22.6
)
Non-recurring tax items
5.8
—
Adjusted net income (loss), diluted
shares, and diluted earnings (loss) per share
35.9
$
244.0
$
6.81
39.7
$
381.6
$
9.61
Non-GAAP Reconciliation - Adjusted
EBITDA
Three Months Ended December
31, 2023
Three Months Ended December
31, 2022
Franchised Dealerships
Segment
EchoPark Segment
Powersports
Segment
Total
Franchised Dealerships
Segment
EchoPark Segment
Powersports
Segment
Total
(In millions)
Net income (loss)
$
38.7
$
(190.9
)
Provision for income taxes
16.0
8.4
Income (loss) before taxes
$
89.8
$
(31.6
)
$
(3.5
)
$
54.7
$
53.9
$
(238.2
)
$
1.8
$
(182.5
)
Non-floor plan interest (1)
25.9
0.7
0.1
26.7
22.0
0.9
0.6
23.5
Depreciation and amortization (2)
31.2
6.1
1.0
38.3
27.4
7.0
0.5
34.9
Stock-based compensation expense
6.0
—
—
6.0
3.6
—
—
3.6
Impairment charges
1.0
15.7
—
16.7
115.5
204.9
—
320.4
Acquisition and disposition-related (gain)
loss
—
—
—
—
(9.2
)
—
—
(9.2
)
Adjusted EBITDA
$
153.9
$
(9.1
)
$
(2.4
)
$
142.4
$
213.2
$
(25.4
)
$
2.9
$
190.7
Twelve Months Ended December
31, 2023
Twelve Months Ended December
31, 2022
Franchised Dealerships
Segment
EchoPark Segment
Powersports
Segment
Total
Franchised Dealerships
Segment
EchoPark Segment
Powersports
Segment
Total
(In millions)
Net income (loss)
$
178.2
$
88.5
Provision for income taxes
63.7
101.5
Income (loss) before taxes
$
447.0
$
(210.8
)
$
5.7
$
241.9
$
526.1
$
(338.8
)
$
2.7
$
190.0
Non-floor plan interest (1)
103.2
3.2
1.7
108.1
80.0
3.7
1.0
84.7
Depreciation and amortization (2)
118.8
26.6
3.4
148.8
107.0
24.8
0.9
132.7
Stock-based compensation expense
23.3
—
—
23.3
16.0
—
—
16.0
Loss (gain) on exit of leased
dealerships
—
4.3
—
4.3
—
—
—
—
Impairment charges
1.0
78.3
—
79.3
115.5
204.9
—
320.4
Severance and long-term compensation
charges
—
5.1
—
5.1
4.4
—
—
4.4
Acquisition and disposition-related (gain)
loss
(20.7
)
0.3
—
(20.4
)
(9.7
)
—
—
(9.7
)
Hail and storm damage charges
1.9
—
—
1.9
—
—
—
—
Used vehicle inventory valuation
adjustment
—
10.0
—
10.0
—
—
—
—
Adjusted EBITDA
$
674.5
$
(83.0
)
$
10.8
$
602.3
$
839.3
$
(105.4
)
$
4.6
$
738.5
(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/20240214331605/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
Sonic Automotive (NYSE:SAH)
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