EchoPark Reports All-Time Record Quarterly
Gross Profit, Segment Income, and Adjusted EBITDA*
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 third quarter ended September 30, 2024.
Third Quarter 2024 Financial
Summary
- Total revenues of $3.5 billion, down 4% year-over-year; total
gross profit of $543.6 million, down 7% year-over-year
- Reported net income of $74.2 million, up 8% year-over-year
($2.13 earnings per diluted share, up 11% year-over-year)
- Reported net income includes the pre-tax effects of $1.8
million in excess compensation expense paid to our teammates
related to the CDK outage and a $1.5 million charge related to
storm damage, offset partially by a $2.3 million gain related to
sale of real estate at previously closed EchoPark Segment stores,
net of a $0.2 million income tax benefit on the above net
charges
- Reported net income also includes a $31.0 million income tax
benefit associated with an out of period adjustment correcting an
error recorded in connection with the impairment of franchise
assets in a prior period
- Excluding these items, adjusted net income* was $44.0 million,
down 39% year-over-year ($1.26 adjusted earnings per diluted
share*, down 38% year-over-year)
- The carryover effects in July from the CDK Global software
outage are estimated to have reduced third quarter GAAP income
before taxes by approximately $17.2 million, and net income by
approximately $12.7 million, or $0.36 in diluted earnings per share
- Approximately $1.8 million ($0.04 in diluted earnings per
share) of the pre-tax CDK impact during the third quarter was
related to excess compensation paid to our teammates as a result of
the CDK outage, which is included as a reconciling item in the
non-GAAP reconciliation tables below
- Total reported selling, general and administrative (“SG&A”)
expenses as a percentage of gross profit of 72.1% (72.4% on a
Franchised Dealerships Segment basis, 72.9% on an EchoPark Segment
basis, and 63.7% on a Powersports Segment basis)
- Total adjusted SG&A expenses as a percentage of gross
profit* of 71.9% (71.6% on a Franchised Dealerships Segment basis,
77.1% on an EchoPark Segment basis, and 63.7% on a Powersports
Segment basis)
- EchoPark Segment revenues of $544.9 million, down 13%
year-over-year; all-time record quarterly EchoPark Segment total
gross profit of $55.2 million, up 5% year-over-year; EchoPark
Segment retail used vehicle unit sales volume of 17,757, down 7%
year-over-year
- Reported EchoPark Segment income of $5.2 million, up 131%
year-over-year, and adjusted EchoPark Segment income* of $2.9
million, up 124% year-over-year
- EchoPark Segment adjusted EBITDA* of $8.9 million, up 271%
year-over-year
- Excluding closed stores, EchoPark Segment adjusted EBITDA* was
$9.2 million, a 454% improvement from a loss of $2.6 million in the
prior year period
- Sonic’s Board of Directors approved a 17% increase to the
quarterly cash dividend, to $0.35 per share, payable on January 15,
2025 to all stockholders of record on December 13, 2024
* 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, “I'm pleased to report that we continued to
build momentum in our EchoPark Segment in the third quarter,
generating all-time record quarterly gross profit, segment income,
and adjusted EBITDA* as a result of the dedicated efforts of our
team and the improving conditions in the used vehicle retail
environment. Overall, the Sonic Automotive team continued to
execute at a high level, despite operational disruptions throughout
July related to the functionality of certain CDK customer lead
applications, inventory management applications and related
third-party application integrations with CDK, which negatively
impacted our Franchised Dealerships Segment results in the third
quarter. With this disruption behind us, we remain confident that
our team, our brand portfolio, and our long-term strategy will
continue to benefit our diversified business and generate long-term
value for our stakeholders.”
Jeff Dyke, President of Sonic Automotive, commented, “I'm very
proud of our team's performance in the third quarter, which not
only drove record segment income in our EchoPark Segment, but also
showcased our franchised dealership team's resilience in managing
through operational disruptions from the CDK outage, manufacturer
stop-sale orders on certain makes and models, and continued
normalization of new vehicle margins. Additionally, the successful
execution of another Sturgis rally by our Powersports team
underscores our commitment to maintaining diverse revenue streams.
Our entire company remains dedicated to delivering an outstanding
guest experience and executing our long-term strategic vision. We
believe that by fostering a culture of excellence and innovation,
we will continue to enhance guest satisfaction and operational
efficiency as we navigate the evolving automotive retail
landscape.”
Heath Byrd, Chief Financial Officer of Sonic Automotive, added,
“Our diversified cash flow streams continued to benefit our overall
financial position in the third quarter, despite operational
disruption from the CDK outage. As of September 30, 2024, we had
approximately $418 million in cash and floor plan deposits on hand,
and approximately $834 million of total liquidity, before
considering unencumbered real estate. We continue to maintain a
conservative balance sheet approach, with the ability to deploy
capital strategically as market conditions evolve.”
Third Quarter 2024 Segment
Highlights
The financial measures discussed below are results for the third
quarter of 2024 with comparisons made to the third quarter of 2023,
unless otherwise noted.
- Franchised Dealerships Segment operating results include:
- Same store revenues down 2%; same store gross profit down
7%
- Same store retail new vehicle unit sales volume up 2%; same
store retail new vehicle gross profit per unit down 35%, to
$3,049
- Same store retail used vehicle unit sales volume down 2%; same
store retail used vehicle gross profit per unit down 17%, to
$1,386
- Same store parts, service and collision repair (“Fixed
Operations”) gross profit up 8%; same store customer pay gross
profit up 4%; same store warranty gross profit up 29%; same store
Fixed Operations gross profit margin up 50 basis points, to
50.2%
- Same store finance and insurance ("F&I") gross profit down
3%; same store F&I gross profit per retail unit of $2,339, down
3%
- On a trailing quarter cost of sales basis, the Franchised
Dealerships Segment had 57 days’ supply of new vehicle inventory
(including in-transit) and 34 days’ supply of used vehicle
inventory
- EchoPark Segment operating results include:
- Revenues of $544.9 million, down 13%; all-time record quarterly
gross profit of $55.2 million, up 5%
- On a same market basis (which excludes closed stores), revenues
were down 3% and gross profit was up 21%
- Retail used vehicle unit sales volume of 17,757, down 7%
- On a same market basis (which excludes closed stores), retail
used vehicle unit sales volume was up 2%
- Reported segment income of $5.2 million, adjusted segment
income* of $2.9 million, and adjusted EBITDA* of $8.9 million
- Closed stores within the segment negatively impacted segment
income by $1.0 million and segment adjusted EBITDA* by $0.3
million
- Excluding closed stores, reported segment income was $6.2
million, adjusted segment income* was $3.9 million, and adjusted
EBITDA* was $9.2 million
- On a trailing quarter cost of sales basis, the EchoPark Segment
had 33 days’ supply of used vehicle inventory
- Powersports Segment operating results include:
- Revenues of $59.4 million, up 4%; gross profit of $17.7
million, down 15%
- Segment income of $4.0 million, down 38%, and adjusted EBITDA*
of $5.8 million, down 27%
* 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 17% increase to the
quarterly cash dividend, to $0.35 per share, payable on January 15,
2025 to all stockholders of record on December 13, 2024.
Third 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 Third 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
Charlotte, North Carolina, is on a quest to become the most
valuable diversified automotive retail 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 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,
the ultimate impact of the CDK outage on the Company, 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. Due to
rounding, numbers presented throughout this and other documents may
not add up precisely to the totals provided and percentages may not
precisely reflect the absolute figures.
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 September
30,
Better / (Worse)
Nine Months Ended September
30,
Better / (Worse)
2024
2023
% Change
2024
2023
% Change
(In millions, except per share
amounts)
Revenues:
Retail new vehicles
$
1,566.8
$
1,573.5
—
%
$
4,575.2
$
4,624.4
(1
)%
Fleet new vehicles
22.2
23.2
(4
)%
68.0
70.4
(3
)%
Total new vehicles
1,589.0
1,596.7
—
%
4,643.2
4,694.8
(1
)%
Used vehicles
1,180.7
1,340.4
(12
)%
3,582.5
3,991.2
(10
)%
Wholesale vehicles
67.2
79.3
(15
)%
215.8
256.3
(16
)%
Total vehicles
2,836.9
3,016.4
(6
)%
8,441.5
8,942.3
(6
)%
Parts, service and collision repair
479.0
453.4
6
%
1,369.8
1,327.6
3
%
Finance, insurance and other, net
175.6
173.7
1
%
517.2
517.7
—
%
Total revenues
3,491.5
3,643.5
(4
)%
10,328.5
10,787.6
(4
)%
Cost of sales:
Retail new vehicles
(1,479.2
)
(1,442.1
)
(3
)%
(4,293.4
)
(4,213.5
)
(2
)%
Fleet new vehicles
(21.6
)
(22.3
)
3
%
(65.7
)
(67.3
)
2
%
Total new vehicles
(1,500.8
)
(1,464.4
)
(2
)%
(4,359.1
)
(4,280.8
)
(2
)%
Used vehicles
(1,139.5
)
(1,288.1
)
12
%
(3,449.6
)
(3,877.4
)
11
%
Wholesale vehicles
(68.5
)
(80.7
)
15
%
(218.5
)
(255.8
)
15
%
Total vehicles
(2,708.8
)
(2,833.2
)
4
%
(8,027.2
)
(8,414.0
)
5
%
Parts, service and collision repair
(239.1
)
(228.1
)
(5
)%
(682.4
)
(669.0
)
(2
)%
Total cost of sales
(2,947.9
)
(3,061.3
)
4
%
(8,709.6
)
(9,083.0
)
4
%
Gross profit
543.6
582.2
(7
)%
1,618.9
1,704.6
(5
)%
Selling, general and administrative
expenses
(392.1
)
(409.6
)
4
%
(1,177.4
)
(1,214.2
)
3
%
Impairment charges
—
—
NM
(2.4
)
(62.6
)
NM
Depreciation and amortization
(37.9
)
(35.2
)
(8
)%
(111.1
)
(105.7
)
(5
)%
Operating income (loss)
113.6
137.4
(17
)%
328.0
322.1
2
%
Other income (expense):
Interest expense, floor plan
(23.0
)
(17.4
)
(32
)%
(65.4
)
(48.9
)
(34
)%
Interest expense, other, net
(29.8
)
(29.0
)
(3
)%
(88.1
)
(86.2
)
(2
)%
Other income (expense), net
—
0.2
NM
(0.5
)
0.3
NM
Total other income (expense)
(52.8
)
(46.2
)
(14
)%
(154.0
)
(134.8
)
(14
)%
Income (loss) before taxes
60.8
91.2
(33
)%
174.0
187.3
(7
)%
Provision for income taxes - benefit
(expense)
13.4
(22.8
)
159
%
(16.6
)
(47.8
)
65
%
Net income (loss)
$
74.2
$
68.4
8
%
$
157.4
$
139.5
13
%
Basic earnings (loss) per common share
$
2.18
$
1.96
11
%
$
4.63
$
3.94
18
%
Basic weighted-average common shares
outstanding
34.0
34.9
3
%
34.0
35.4
4
%
Diluted earnings (loss) per common
share
$
2.13
$
1.92
11
%
$
4.52
$
3.85
17
%
Diluted weighted-average common shares
outstanding
34.9
35.6
2
%
34.8
36.2
4
%
Dividends declared per common share
$
0.30
$
0.30
—
%
$
0.90
$
0.86
5
%
NM = Not Meaningful
Franchised Dealerships Segment -
Reported
Three Months Ended September
30,
Better / (Worse)
Nine Months Ended September
30,
Better / (Worse)
2024
2023
% Change
2024
2023
% Change
(In millions, except unit and
per unit data)
Revenues:
Retail new vehicles
$
1,539.9
$
1,546.7
—
%
$
4,510.8
$
4,550.9
(1
)%
Fleet new vehicles
22.2
23.2
(4
)%
68.0
70.4
(3
)%
Total new vehicles
1,562.1
1,569.9
—
%
4,578.8
4,621.3
(1
)%
Used vehicles
701.4
780.7
(10
)%
2,162.8
2,322.8
(7
)%
Wholesale vehicles
42.4
51.4
(18
)%
139.1
165.3
(16
)%
Total vehicles
2,305.9
2,402.0
(4
)%
6,880.7
7,109.4
(3
)%
Parts, service and collision repair
458.9
431.8
6
%
1,333.2
1,289.0
3
%
Finance, insurance and other, net
122.4
126.0
(3
)%
366.3
375.4
(2
)%
Total revenues
2,887.2
2,959.8
(2
)%
8,580.2
8,773.8
(2
)%
Gross Profit:
Retail new vehicles
83.5
125.5
(33
)%
272.5
396.5
(31
)%
Fleet new vehicles
0.6
0.9
(33
)%
2.3
3.1
(26
)%
Total new vehicles
84.1
126.4
(33
)%
274.8
399.6
(31
)%
Used vehicles
34.6
42.6
(19
)%
114.1
127.9
(11
)%
Wholesale vehicles
(1.1
)
(1.5
)
27
%
(1.8
)
(0.8
)
(125
)%
Total vehicles
117.6
167.5
(30
)%
387.1
526.7
(27
)%
Parts, service and collision repair
230.7
215.1
7
%
670.4
640.1
5
%
Finance, insurance and other, net
122.4
126.0
(3
)%
366.3
375.4
(2
)%
Total gross profit
470.7
508.6
(7
)%
1,423.8
1,542.2
(8
)%
Selling, general and administrative
expenses
(340.5
)
(338.3
)
(1
)%
(1,027.0
)
(985.5
)
(4
)%
Impairment charges
—
—
NM
(1.0
)
—
NM
Depreciation and amortization
(31.5
)
(28.2
)
(12
)%
(91.6
)
(82.8
)
(11
)%
Operating income (loss)
98.7
142.1
(31
)%
304.2
473.9
(36
)%
Other income (expense):
Interest expense, floor plan
(18.7
)
(12.9
)
(45
)%
(52.5
)
(34.7
)
(51
)%
Interest expense, other, net
(28.5
)
(27.9
)
(2
)%
(84.1
)
(82.2
)
(2
)%
Other income (expense), net
0.1
0.2
NM
(0.6
)
0.2
NM
Total other income (expense)
(47.1
)
(40.6
)
(16
)%
(137.2
)
(116.7
)
(18
)%
Income (loss) before taxes
51.6
101.5
(49
)%
167.0
357.2
(53
)%
Add: Impairment charges
—
—
NM
1.0
—
NM
Segment income (loss)
$
51.6
$
101.5
(49
)%
$
168.0
$
357.2
(53
)%
Unit Sales Volume:
Retail new vehicles
27,391
26,869
2
%
79,200
78,766
1
%
Fleet new vehicles
406
469
(13
)%
1,299
1,500
(13
)%
Total new vehicles
27,797
27,338
2
%
80,499
80,266
—
%
Used vehicles
24,940
25,541
(2
)%
76,274
75,845
1
%
Wholesale vehicles
4,973
5,163
(4
)%
15,326
16,162
(5
)%
Retail new & used vehicles
52,331
52,410
—
%
155,474
154,611
1
%
Used-to-New Ratio
0.91
0.95
(4
)%
0.96
0.96
—
%
Gross Profit Per Unit:
Retail new vehicles
$
3,047
$
4,672
(35
)%
$
3,441
$
5,034
(32
)%
Fleet new vehicles
$
1,596
$
2,046
(22
)%
$
1,743
$
2,059
(15
)%
New vehicles
$
3,026
$
4,627
(35
)%
$
3,413
$
4,978
(31
)%
Used vehicles
$
1,386
$
1,666
(17
)%
$
1,497
$
1,685
(11
)%
Finance, insurance and other, net
$
2,340
$
2,403
(3
)%
$
2,356
$
2,428
(3
)%
NM = Not Meaningful
Note: Reported Franchised Dealerships
Segment results include (i) same store results from the “Franchised
Dealerships Segment - Same Store” table below and (ii) the effects
of acquisitions, open points, dispositions and holding company
impacts for the periods reported. All currently operating
franchised dealership stores are included within the same store
group as of the first full month following the first anniversary of
the store’s opening or acquisition.
Franchised Dealerships Segment - Same
Store
Three Months Ended September
30,
Better / (Worse)
Nine Months Ended September
30,
Better / (Worse)
2024
2023
% Change
2024
2023
% Change
(In millions, except unit and
per unit data)
Revenues:
Retail new vehicles
$
1,539.8
$
1,542.8
—
%
$
4,502.1
$
4,502.8
—
%
Fleet new vehicles
22.2
23.2
(4
)%
68.0
69.6
(2
)%
Total new vehicles
1,562.0
1,566.0
—
%
4,570.1
4,572.4
—
%
Used vehicles
701.2
778.0
(10
)%
2,155.0
2,295.4
(6
)%
Wholesale vehicles
42.2
51.1
(17
)%
138.5
163.0
(15
)%
Total vehicles
2,305.4
2,395.1
(4
)%
6,863.6
7,030.8
(2
)%
Parts, service and collision repair
458.8
430.5
7
%
1,329.6
1,276.3
4
%
Finance, insurance and other, net
122.4
125.9
(3
)%
365.5
371.8
(2
)%
Total revenues
2,886.6
2,951.5
(2
)%
8,558.7
8,678.9
(1
)%
Gross Profit:
Retail new vehicles
83.5
125.4
(33
)%
272.3
392.9
(31
)%
Fleet new vehicles
0.6
1.0
(40
)%
2.3
3.1
(26
)%
Total new vehicles
84.2
126.3
(33
)%
274.5
396.1
(31
)%
Used vehicles
34.6
42.4
(18
)%
114.3
126.6
(10
)%
Wholesale vehicles
(1.3
)
(1.3
)
—
%
(1.7
)
0.1
(1,800
)%
Total vehicles
117.5
167.4
(30
)%
387.1
522.8
(26
)%
Parts, service and collision repair
230.4
214.1
8
%
667.8
632.9
6
%
Finance, insurance and other, net
122.4
125.9
(3
)%
365.5
371.8
(2
)%
Total gross profit
$
470.3
$
507.4
(7
)%
$
1,420.4
$
1,527.5
(7
)%
Unit Sales Volume:
Retail new vehicles
27,387
26,774
2
%
79,016
77,639
2
%
Fleet new vehicles
406
469
(13
)%
1,299
1,471
(12
)%
Total new vehicles
27,793
27,243
2
%
80,315
79,110
2
%
Used vehicles
24,934
25,426
(2
)%
75,973
74,777
2
%
Wholesale vehicles
4,968
5,127
(3
)%
15,242
15,913
(4
)%
Retail new & used vehicles
52,321
52,200
—
%
154,989
152,416
2
%
Used-to-New Ratio
0.91
0.95
(4
)%
0.96
0.96
—
%
Gross Profit Per Unit:
Retail new vehicles
$
3,049
$
4,682
(35
)%
$
3,446
$
5,061
(32
)%
Fleet new vehicles
$
1,596
$
2,046
(22
)%
$
1,743
$
2,131
(18
)%
New vehicles
$
3,028
$
4,637
(35
)%
$
3,418
$
5,006
(32
)%
Used vehicles
$
1,386
$
1,669
(17
)%
$
1,505
$
1,694
(11
)%
Finance, insurance and other, net
$
2,339
$
2,411
(3
)%
$
2,358
$
2,440
(3
)%
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 September
30,
Better / (Worse)
Nine Months Ended September
30,
Better / (Worse)
2024
2023
% Change
2024
2023
% Change
(In millions, except unit and
per unit data)
Revenues:
Retail new vehicles
$
—
$
—
—
%
$
—
$
1.0
(100
)%
Used vehicles
470.3
554.8
(15
)%
1,402.0
1,651.3
(15
)%
Wholesale vehicles
23.8
26.6
(11
)%
74.4
89.1
(16
)%
Total vehicles
494.1
581.4
(15
)%
1,476.4
1,741.4
(15
)%
Finance, insurance and other, net
50.8
45.3
12
%
145.2
136.4
6
%
Total revenues
544.9
626.7
(13
)%
1,621.6
1,877.8
(14
)%
Gross Profit:
Retail new vehicles
—
—
—
%
—
0.1
(100
)%
Used vehicles
4.4
7.3
(40
)%
14.4
(18.8
)
177
%
Wholesale vehicles
—
0.2
(100
)%
(0.7
)
1.3
(154
)%
Total vehicles
4.4
7.5
(41
)%
13.7
(17.4
)
179
%
Finance, insurance and other, net
50.8
45.3
12
%
145.2
136.4
6
%
Total gross profit
55.2
52.8
5
%
158.9
119.0
34
%
Selling, general and administrative
expenses
(40.2
)
(58.6
)
31
%
(123.1
)
(199.0
)
38
%
Impairment charges
—
—
NM
(1.4
)
(62.6
)
NM
Depreciation and amortization
(5.4
)
(6.1
)
11
%
(16.4
)
(20.4
)
20
%
Operating income (loss)
9.6
(11.9
)
181
%
18.0
(163.0
)
111
%
Other income (expense):
Interest expense, floor plan
(3.7
)
(4.3
)
14
%
(11.3
)
(13.6
)
17
%
Interest expense, other, net
(0.7
)
(0.7
)
—
%
(2.0
)
(2.5
)
20
%
Other income (expense), net
—
—
NM
—
—
NM
Total other income (expense)
4.4
(5.0
)
188
%
13.3
(16.1
)
183
%
Income (loss) before taxes
5.2
(16.9
)
131
%
4.7
(179.1
)
103
%
Add: Impairment charges
—
—
NM
1.4
62.6
NM
Segment income (loss)
$
5.2
$
(16.9
)
131
%
$
6.1
$
(116.5
)
105
%
Unit Sales Volume:
Retail new vehicles
—
—
—
%
—
11
(100
)%
Used vehicles
17,757
19,050
(7
)%
52,379
56,114
(7
)%
Wholesale vehicles
2,720
2,740
(1
)%
8,307
8,891
(7
)%
Gross Profit Per Unit:
Total used vehicle and F&I
$
3,111
$
2,767
12
%
$
3,047
$
2,095
45
%
NM = Not Meaningful
EchoPark Segment - Same Market
Three Months Ended September
30,
Better / (Worse)
Nine Months Ended September
30,
Better / (Worse)
2024
2023
% Change
2024
2023
% Change
(In millions, except unit and
per unit data)
Revenues:
Used vehicles
$
470.3
$
497.2
(5
)%
$
1,392.4
$
1,340.9
4
%
Wholesale vehicles
23.8
24.2
(2
)%
71.2
68.4
4
%
Total vehicles
494.1
521.4
(5
)%
1,463.6
1,409.3
4
%
Finance, insurance and other, net
51.4
41.0
25
%
146.2
111.9
31
%
Total revenues
545.5
562.4
(3
)%
1,609.8
1,521.2
6
%
Gross Profit:
Used vehicles
4.4
4.7
(6
)%
14.8
(9.3
)
259
%
Wholesale vehicles
—
0.4
(100
)%
—
1.8
(100
)%
Total vehicles
4.4
5.1
(14
)%
14.8
(7.5
)
297
%
Finance, insurance and other, net
51.4
41.0
25
%
146.2
111.9
31
%
Total gross profit
$
55.8
$
46.1
21
%
$
161.0
$
104.4
54
%
Unit Sales Volume:
Used vehicles
17,757
17,454
2
%
52,016
46,534
12
%
Wholesale vehicles
2,720
2,491
9
%
8,098
7,012
15
%
Gross Profit Per Unit:
Total used vehicle and F&I
$
3,145
$
2,621
20
%
$
3,096
$
2,203
41
%
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 September
30,
Better / (Worse)
Nine Months Ended September
30,
Better / (Worse)
2024
2023
% Change
2024
2023
% Change
(In millions, except unit and
per unit data)
Revenues:
Retail new vehicles
$
26.9
$
26.8
—
%
$
64.4
$
72.5
(11
)%
Used vehicles
9.0
4.9
84
%
17.6
17.1
3
%
Wholesale vehicles
1.1
1.3
(15
)%
2.3
1.9
21
%
Total vehicles
37.0
33.0
12
%
84.3
91.5
(8
)%
Parts, service and collision repair
20.1
21.6
(7
)%
36.6
38.6
(5
)%
Finance, insurance and other, net
2.3
2.4
(4
)%
5.8
5.9
(2
)%
Total revenues
59.4
57.0
4
%
126.7
136.0
(7
)%
Gross Profit:
Retail new vehicles
4.1
5.9
(31
)%
9.3
14.3
(35
)%
Used vehicles
2.2
2.4
(8
)%
4.3
4.7
(9
)%
Wholesale vehicles
(0.1
)
(0.1
)
—
%
(0.2
)
—
(100
)%
Total vehicles
6.2
8.2
(24
)%
13.4
19.0
(29
)%
Parts, service and collision repair
9.2
10.2
(10
)%
17.0
18.5
(8
)%
Finance, insurance and other, net
2.3
2.4
(4
)%
5.8
5.9
(2
)%
Total gross profit
17.7
20.8
(15
)%
36.2
43.4
(17
)%
Selling, general and administrative
expenses
(11.3
)
(12.7
)
11
%
(27.3
)
(29.7
)
8
%
Depreciation and amortization
(1.1
)
(0.9
)
(22
)%
(3.1
)
(2.5
)
(24
)%
Operating income (loss)
5.3
7.2
(26
)%
5.8
11.2
(48
)%
Other income (expense):
Interest expense, floor plan
(0.7
)
(0.2
)
(250
)%
(1.6
)
(0.6
)
(167
)%
Interest expense, other, net
(0.6
)
(0.4
)
(50
)%
(1.9
)
(1.5
)
(27
)%
Other income (expense), net
—
—
NM
—
0.1
NM
Total other income (expense)
(1.3
)
(0.6
)
(117
)%
(3.5
)
(2.0
)
(75
)%
Income (loss) before taxes
4.0
6.6
(39
)%
2.3
9.2
(75
)%
Add: Impairment charges
—
—
NM
—
—
NM
Segment income (loss)
$
4.0
$
6.6
(39
)%
$
2.3
$
9.2
(75
)%
Unit Sales Volume:
Retail new vehicles
1,266
1,391
(9
)%
3,304
3,894
(15
)%
Used vehicles
777
837
(7
)%
1,708
1,972
(13
)%
Wholesale vehicles
99
93
6
%
130
150
(13
)%
Gross Profit Per Unit:
Retail new vehicles
$
3,249
$
4,213
(23
)%
$
2,820
$
3,680
(23
)%
Used vehicles
$
2,798
$
2,833
(1
)%
$
2,537
$
2,407
5
%
Finance, insurance and other, net
$
1,136
$
1,075
6
%
$
1,157
$
1,006
15
%
NM = Not Meaningful
Powersports Segment - Same
Store
Three Months Ended September
30,
Better / (Worse)
Nine Months Ended September
30,
Better / (Worse)
2024
2023
% Change
2024
2023
% Change
(In millions, except unit and
per unit data)
Revenues:
Retail new vehicles
$
26.9
$
26.8
—
%
$
63.9
$
72.3
(12
)%
Used vehicles
9.0
4.9
84
%
17.0
16.6
2
%
Wholesale vehicles
1.1
1.3
(15
)%
2.2
1.8
22
%
Total vehicles
37.0
33.0
12
%
83.1
90.7
(8
)%
Parts, service and collision repair
20.1
21.6
(7
)%
35.9
38.3
(6
)%
Finance, insurance and other, net
2.3
2.4
(4
)%
5.7
5.9
(3
)%
Total revenues
59.4
57.0
4
%
124.7
134.9
(8
)%
Gross Profit:
Retail new vehicles
4.1
5.9
(31
)%
9.2
14.3
(36
)%
Used vehicles
2.2
2.4
(8
)%
4.2
4.6
(9
)%
Wholesale vehicles
(0.1
)
(0.1
)
—
%
(0.3
)
(0.1
)
(200
)%
Total vehicles
6.2
8.2
(24
)%
13.1
18.8
(30
)%
Parts, service and collision repair
9.2
10.2
(10
)%
16.7
18.3
(9
)%
Finance, insurance and other, net
2.3
2.4
(4
)%
5.7
5.9
(3
)%
Total gross profit
$
17.7
$
20.8
(15
)%
$
35.5
$
43.0
(17
)%
Unit Sales Volume:
Retail new vehicles
1,266
1,391
(9
)%
3,287
3,887
(15
)%
Used vehicles
777
837
(7
)%
1,635
1,929
(15
)%
Wholesale vehicles
99
93
6
%
127
149
(15
)%
Retail new & used vehicles
2,043
2,228
(8
)%
4,922
5,816
(15
)%
Used-to-New Ratio
0.61
0.60
2
%
0.50
0.50
—
%
Gross Profit Per Unit:
Retail new vehicles
$
3,249
$
4,213
(23
)%
$
2,790
$
3,674
(24
)%
Used vehicles
$
2,798
$
2,833
(1
)%
$
2,556
$
2,397
7
%
Finance, insurance and other, net
$
1,136
$
1,075
6
%
$
1,163
$
1,007
15
%
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 September
30,
Better / (Worse)
2024
2023
Change
% Change
(In millions)
Reported:
Compensation
$
252.2
$
256.0
$
3.8
1
%
Advertising
21.5
22.5
1.0
4
%
Rent
8.9
11.7
2.8
24
%
Other
109.5
119.4
9.9
8
%
Total SG&A expenses
$
392.1
$
409.6
$
17.5
4
%
Adjustments:
Acquisition and disposition-related gain
(loss)
$
2.3
$
—
Excess compensation related to CDK
outage
(1.8
)
—
Storm damage charges
(1.5
)
—
Gain (loss) on exit of leased
dealerships
—
(3.9
)
Severance and long-term compensation
charges
—
(0.9
)
Total SG&A adjustments
$
(1.0
)
$
(4.8
)
Adjusted:
Total adjusted SG&A expenses
$
391.1
$
404.8
$
13.7
3
%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
46.4
%
44.0
%
(240
)
bps
Advertising
4.0
%
3.9
%
(10
)
bps
Rent
1.6
%
2.0
%
40
bps
Other
20.1
%
20.5
%
40
bps
Total SG&A expenses as a % of gross
profit
72.1
%
70.4
%
(170
)
bps
Adjustments:
Acquisition and disposition-related gain
(loss)
0.5
%
—
%
Excess compensation related to CDK
outage
(0.4
)%
—
%
Storm damage charges
(0.3
)%
—
%
Gain (loss) on exit of leased
dealerships
—
%
(0.7
)%
Severance and long-term compensation
charges
—
%
(0.2
)%
Total effect of adjustments
(0.2
)%
(0.9
)%
Adjusted:
Total adjusted SG&A expenses as a % of
gross profit
71.9
%
69.5
%
(240
)
bps
Reported:
Total gross profit
$
543.6
$
582.2
$
(38.6
)
(7
)%
Non-GAAP Reconciliation - Consolidated
- SG&A Expenses (Continued)
Nine Months Ended September
30,
Better / (Worse)
2024
2023
Change
% Change
(In millions)
Reported:
Compensation
$
750.3
$
775.8
$
25.5
3
%
Advertising
65.5
71.4
5.9
8
%
Rent
25.9
34.5
8.6
25
%
Other
335.7
332.5
(3.2
)
(1
)%
Total SG&A expenses
$
1,177.4
$
1,214.2
$
36.8
3
%
Adjustments:
Acquisition and disposition-related gain
(loss)
$
2.9
$
20.7
Closed store accrued expenses
(2.1
)
—
Excess compensation related to CDK
outage
(11.4
)
—
Storm damage charges
(5.1
)
(1.9
)
Gain (loss) on exit of leased
dealerships
3.0
(4.3
)
Severance and long-term compensation
charges
(5.0
)
(5.1
)
Total SG&A adjustments
$
(17.7
)
$
9.4
Adjusted:
Total adjusted SG&A expenses
$
1,159.7
$
1,223.6
$
63.9
5
%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
46.3
%
45.5
%
(80
)
bps
Advertising
4.0
%
4.2
%
20
bps
Rent
1.6
%
2.0
%
40
bps
Other
20.8
%
19.5
%
(130
)
bps
Total SG&A expenses as a % of gross
profit
72.7
%
71.2
%
(150
)
bps
Adjustments:
Acquisition and disposition-related gain
(loss)
0.2
%
0.4
%
Closed store accrued expenses
(0.1
)%
—
%
Excess compensation related to CDK
outage
(0.8
)%
—
%
Storm damage charges
(0.3
)%
—
%
Gain (loss) on exit of leased
dealerships
0.2
%
(0.1
)%
Severance and long-term compensation
charges
(0.3
)%
(0.1
)%
Total effect of adjustments
(1.2
)%
0.2
%
Adjusted:
Total adjusted SG&A expenses as a % of
gross profit
71.5
%
71.4
%
(20
)
bps
Reported:
Total gross profit
$
1,618.9
$
1,704.6
$
(85.7
)
(5
)%
Adjustments:
Excess compensation related to CDK
outage
$
2.0
$
—
Used vehicle inventory valuation
adjustment
—
10.0
Total adjustments
$
2.0
$
10.0
Adjusted:
Total adjusted gross profit
$
1,620.9
$
1,714.6
$
(93.7
)
(5
)%
Non-GAAP Reconciliation - Franchised
Dealerships Segment - SG&A Expenses
Three Months Ended September
30,
Better / (Worse)
2024
2023
Change
% Change
(In millions)
Reported:
Compensation
$
220.2
$
216.9
$
(3.3
)
(2
)%
Advertising
13.7
11.0
(2.7
)
(25
)%
Rent
9.2
10.2
1.0
10
%
Other
97.4
100.2
2.8
3
%
Total SG&A expenses
$
340.5
$
338.3
$
(2.2
)
(1
)%
Adjustments:
Excess compensation related to CDK
outage
(1.8
)
—
Storm damage charges
$
(1.5
)
$
—
Total SG&A adjustments
$
(3.3
)
$
—
Adjusted:
Total adjusted SG&A expenses
$
337.2
$
338.3
$
1.1
—
%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
46.8
%
42.6
%
(420
)
bps
Advertising
2.9
%
2.2
%
(70
)
bps
Rent
2.0
%
2.0
%
—
bps
Other
20.7
%
19.7
%
(100
)
bps
Total SG&A expenses as a % of gross
profit
72.4
%
66.5
%
(590
)
bps
Adjustments:
Excess compensation related to CDK
outage
(0.4
)%
—
%
Storm damage charges
(0.4
)%
—
%
Total effect of adjustments
(0.8
)%
—
%
Adjusted:
Total adjusted SG&A expenses as a % of
gross profit
71.6
%
66.5
%
(510
)
bps
Reported:
Total gross profit
$
470.7
$
508.6
$
(37.9
)
(7
)%
Non-GAAP Reconciliation - Franchised
Dealerships Segment - SG&A Expenses (Continued)
Nine Months Ended September
30,
Better / (Worse)
2024
2023
Change
% Change
(In millions)
Reported:
Compensation
$
658.5
$
649.7
$
(8.8
)
(1
)%
Advertising
43.2
29.7
(13.5
)
(45
)%
Rent
29.6
29.8
0.2
1
%
Other
295.7
276.3
(19.4
)
(7
)%
Total SG&A expenses
$
1,027.0
$
985.5
$
(41.5
)
(4
)%
Adjustments:
Acquisition and disposition-related gain
(loss)
$
—
$
20.9
Excess compensation related to CDK
outage
(11.0
)
—
Storm damage charges
(5.1
)
(1.9
)
Severance and long-term compensation
charges
(2.2
)
—
Total SG&A adjustments
$
(18.3
)
$
19.0
Adjusted:
Total adjusted SG&A expenses
$
1,008.7
$
1,004.5
$
(4.2
)
—
%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
46.3
%
42.1
%
(420
)
bps
Advertising
3.0
%
1.9
%
(110
)
bps
Rent
2.1
%
1.9
%
(20
)
bps
Other
20.7
%
18.0
%
(270
)
bps
Total SG&A expenses as a % of gross
profit
72.1
%
63.9
%
(820
)
bps
Adjustments:
Acquisition and disposition-related gain
(loss)
—
%
1.3
%
Excess compensation related to CDK
outage
(0.8
)%
—
%
Storm damage charges
(0.4
)%
(0.1
)%
Severance and long-term compensation
charges
(0.2
)%
—
%
Total effect of adjustments
(1.4
)%
1.2
%
Adjusted:
Total adjusted SG&A expenses as a % of
gross profit
70.7
%
65.1
%
(560
)
bps
Reported:
Total gross profit
$
1,423.8
$
1,542.2
$
(118.4
)
(8
)%
Adjustments:
Excess compensation related to CDK
outage
$
2.0
$
—
Total adjustments
$
2.0
$
—
Adjusted:
Total adjusted gross profit
$
1,425.8
$
1,542.2
$
(116.4
)
(8
)%
Non-GAAP Reconciliation - EchoPark
Segment - SG&A Expenses
Three Months Ended September
30,
Better / (Worse)
2024
2023
Change
% Change
(In millions)
Reported:
Compensation
$
23.5
$
30.0
$
6.5
22
%
Advertising
7.4
10.9
3.5
32
%
Rent
0.7
2.1
1.4
67
%
Other
8.6
15.6
7.0
45
%
Total SG&A expenses
$
40.2
$
58.6
$
18.4
31
%
Adjustments:
Acquisition and disposition-related gain
(loss)
$
2.3
$
—
Gain (loss) on exit of leased
dealerships
—
(3.9
)
Severance and long-term compensation
charges
—
(0.9
)
Total SG&A adjustments
$
2.3
$
(4.8
)
Adjusted:
Total adjusted SG&A expenses
$
42.5
$
53.8
$
11.3
21
%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
42.6
%
56.9
%
1,430
bps
Advertising
13.5
%
20.5
%
700
bps
Rent
1.3
%
3.9
%
260
bps
Other
15.5
%
29.8
%
1,430
bps
Total SG&A expenses as a % of gross
profit
72.9
%
111.1
%
3,820
bps
Adjustments:
Acquisition and disposition-related gain
(loss)
4.2
%
—
%
Gain (loss) on exit of leased
dealerships
—
%
(7.5
)%
Severance and long-term compensation
charges
—
%
(1.7
)%
Total effect of adjustments
4.2
%
(9.2
)%
Adjusted:
Total adjusted SG&A expenses as a % of
gross profit
77.1
%
101.9
%
2,480
bps
Reported:
Total gross profit
$
55.2
$
52.8
$
2.4
5
%
Non-GAAP Reconciliation - EchoPark
Segment - SG&A Expenses (Continued)
Nine Months Ended September
30,
Better / (Worse)
2024
2023
Change
% Change
(In millions)
Reported:
Compensation
$
72.0
$
105.1
$
33.1
31
%
Advertising
21.0
40.3
19.3
48
%
Rent
(2.7
)
5.3
8.0
151
%
Other
32.8
48.3
15.5
32
%
Total SG&A expenses
$
123.1
$
199.0
$
75.9
38
%
Adjustments:
Acquisition and disposition-related gain
(loss)
$
2.9
$
(0.3
)
Closed store accrued expenses
(2.1
)
—
Excess compensation related to CDK
outage
(0.4
)
—
Gain (loss) on exit of leased
dealerships
3.0
(4.3
)
Severance and long-term compensation
charges
(2.8
)
(5.1
)
Total SG&A adjustments
$
0.6
$
(9.7
)
Adjusted:
Total adjusted SG&A expenses
$
123.7
$
189.3
$
65.6
35
%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
45.3
%
88.4
%
4,310
bps
Advertising
13.2
%
33.9
%
2,070
bps
Rent
(1.7
)%
4.4
%
610
bps
Other
20.6
%
40.5
%
1,990
bps
Total SG&A expenses as a % of gross
profit
77.4
%
167.2
%
8,980
bps
Adjustments:
Acquisition and disposition-related gain
(loss)
1.9
%
(0.6
)%
Closed store accrued expenses
(1.4
)%
—
%
Excess compensation related to CDK
outage
(0.3
)%
—
%
Gain (loss) on exit of leased
dealerships
2.0
%
(9.0
)%
Severance and long-term compensation
charges
(1.9
)%
(10.8
)%
Total effect of adjustments
0.4
%
(20.4
)%
Adjusted:
Total adjusted SG&A expenses as a % of
gross profit
77.8
%
146.8
%
6,900
bps
Reported:
Total gross profit
$
158.9
$
119.0
$
39.9
34
%
Adjustments:
Used vehicle inventory valuation
adjustment
$
—
$
10.0
Total adjustments
$
—
$
10.0
Adjusted:
Total adjusted gross profit
$
158.9
$
129.0
$
29.9
23
%
Non-GAAP Reconciliation - Powersports
Segment - SG&A Expenses
Three Months Ended September
30,
Better / (Worse)
2024
2023
Change
% Change
(In millions)
Reported:
Compensation
$
8.4
$
9.1
$
0.7
8
%
Advertising
0.4
0.6
0.2
33
%
Rent
(1.1
)
(0.6
)
0.5
(83
)%
Other
3.6
3.6
—
—
%
Total SG&A expenses
$
11.3
$
12.7
$
1.4
11
%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
47.8
%
44.0
%
(380
)
bps
Advertising
2.5
%
2.9
%
40
bps
Rent
(6.4
)%
(2.9
)%
350
bps
Other
19.8
%
17.1
%
(270
)
bps
Total SG&A expenses as a % of gross
profit
63.7
%
61.1
%
(260
)
bps
Reported:
Total gross profit
$
17.7
$
20.8
$
(3.1
)
(15
)%
Nine Months Ended September
30,
Better / (Worse)
2024
2023
Change
% Change
(In millions)
Reported:
Compensation
$
19.8
$
21.0
$
1.2
6
%
Advertising
1.2
1.4
0.2
14
%
Rent
(1.0
)
(0.6
)
0.4
(67
)%
Other
7.3
7.9
0.6
8
%
Total SG&A expenses
$
27.3
$
29.7
$
2.4
8
%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
54.7
%
48.4
%
(630
)
bps
Advertising
3.4
%
3.2
%
(20
)
bps
Rent
(2.8
)%
(1.2
)%
160
bps
Other
20.2
%
18.1
%
(210
)
bps
Total SG&A expenses as a % of gross
profit
75.5
%
68.5
%
(700
)
bps
Reported:
Total gross profit
$
36.2
$
43.4
$
(7.2
)
(17
)%
Non-GAAP Reconciliation - Franchised
Dealerships Segment - Income (Loss) Before Taxes and Segment Income
(Loss)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
% Change
2024
2023
% Change
(In millions)
Reported:
Income (loss) before taxes
$
51.6
$
101.5
(49
)%
$
167.0
$
357.2
(53
)%
Add: Impairment charges
—
—
1.0
—
Segment income (loss)
$
51.6
$
101.5
(49
)%
$
168.0
$
357.2
(53
)%
Adjustments:
Acquisition and disposition-related (gain)
loss
$
—
$
—
$
—
$
(20.9
)
Excess compensation related to CDK
outage
1.8
—
13.0
—
Storm damage charges
1.5
—
5.1
1.9
Severance and long-term compensation
charges
—
—
2.2
—
Total pre-tax adjustments
$
3.3
$
—
$
20.3
$
(19.0
)
Adjusted:
Segment income (loss)
$
54.9
$
101.5
(46
)%
$
188.3
$
338.2
(44
)%
Non-GAAP Reconciliation - EchoPark
Segment - Income (Loss) Before Taxes and Segment Income
(Loss)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
% Change
2024
2023
% Change
(In millions)
Reported:
Income (loss) before taxes
$
5.2
$
(16.9
)
131
%
$
4.7
$
(179.1
)
103
%
Add: Impairment charges
—
—
1.4
62.6
Segment income (loss)
$
5.2
$
(16.9
)
131
%
$
6.1
$
(116.5
)
105
%
Adjustments:
Acquisition and disposition-related (gain)
loss
$
(2.3
)
$
—
$
(2.9
)
$
0.3
Closed store accrued expenses
—
—
2.1
—
Excess compensation related to CDK
outage
—
—
0.4
—
Loss (gain) on exit of leased
dealerships
—
3.9
(3.0
)
4.3
Severance and long-term compensation
charges
—
0.9
2.8
5.1
Used vehicle inventory valuation
adjustment
—
—
—
10.0
Total pre-tax adjustments
$
(2.3
)
$
4.8
$
(0.6
)
$
19.7
Adjusted:
Segment income (loss)
$
2.9
$
(12.1
)
124
%
$
5.5
$
(96.8
)
106
%
Non-GAAP Reconciliation - Powersports
Segment - Income (Loss) Before Taxes and Segment Income
(Loss)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
% Change
2024
2023
% Change
(In millions)
Reported:
Income (loss) before taxes
$
4.0
$
6.6
(39
)%
$
2.3
$
9.2
(75
)%
Add: Impairment charges
—
—
—
—
Segment income (loss)
$
4.0
$
6.6
(39
)%
$
2.3
$
9.2
(75
)%
Non-GAAP Reconciliation - Consolidated
- Net Income (Loss) and Diluted Earnings (Loss) Per Share
Three Months Ended September
30, 2024
Three Months Ended September
30, 2023
Weighted-
Average
Shares
Amount
Per
Share
Amount
Weighted-
Average
Shares
Amount
Per
Share
Amount
(In millions, except per share
amounts)
Reported net income (loss), diluted
shares, and diluted earnings (loss) per share
34.9
$
74.2
$
2.13
35.6
$
68.4
$
1.92
Adjustments:
Acquisition and disposition-related gain
(loss)
$
(2.3
)
$
—
Excess compensation related to CDK
outage
1.8
—
Storm damage charges
1.5
—
Loss (gain) on exit of leased
dealerships
—
3.9
Severance and long-term compensation
charges
—
0.9
Total pre-tax adjustments
$
1.0
$
4.8
Tax effect of above items
(0.2
)
(1.2
)
Non-recurring tax items
$
(31.0
)
$
—
Adjusted net income (loss), diluted
shares, and diluted earnings (loss) per share
34.9
$
44.0
$
1.26
35.6
$
72.0
$
2.02
Nine Months Ended September
30, 2024
Nine Months Ended September
30, 2023
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
34.8
$
157.4
$
4.52
36.2
$
139.5
$
3.85
Adjustments:
Acquisition and disposition-related gain
(loss)
$
(2.9
)
$
(20.7
)
Closed store accrued expenses
2.1
—
Excess compensation related to CDK
outage
13.4
—
Storm damage charges
5.1
1.9
Impairment charges
2.4
62.6
Loss (gain) on exit of leased
dealerships
(3.0
)
4.3
Severance and long-term compensation
charges
5.0
5.1
Used vehicle inventory valuation
adjustment
—
10.0
Total pre-tax adjustments
$
22.1
$
63.2
Tax effect of above items
(5.8
)
(15.6
)
Non-recurring tax items
$
(31.0
)
$
—
Adjusted net income (loss), diluted
shares, and diluted earnings (loss) per share
34.8
$
142.7
$
4.10
36.2
$
187.1
$
5.17
Non-GAAP Reconciliation - Adjusted
EBITDA
Three Months Ended September
30, 2024
Three Months Ended September
30, 2023
Franchised Dealerships
Segment
EchoPark Segment
Powersports Segment
Total
Franchised Dealerships
Segment
EchoPark Segment
Powersports Segment
Total
(In millions)
Net income (loss)
$
74.2
$
68.4
Provision for income taxes
(13.4
)
22.8
Income (loss) before taxes
$
51.6
$
5.2
$
4.0
$
60.8
$
101.5
$
(16.9
)
$
6.6
$
91.2
Non-floor plan interest (1)
27.1
0.7
0.6
28.4
26.2
0.7
0.4
27.3
Depreciation and amortization (2)
32.8
5.3
1.2
39.3
29.9
6.1
0.9
36.9
Stock-based compensation expense
5.5
—
—
5.5
6.7
—
—
6.7
Loss (gain) on exit of leased
dealerships
—
—
—
—
—
3.9
—
3.9
Severance and long-term compensation
charges
—
—
—
—
—
0.9
—
0.9
Excess compensation related to CDK
outage
1.8
—
—
1.8
—
—
—
—
Acquisition and disposition related (gain)
loss
—
(2.3
)
—
(2.3
)
0.2
0.1
—
0.3
Storm damage charges
1.5
—
—
1.5
—
—
—
—
Adjusted EBITDA
$
120.3
$
8.9
$
5.8
$
135.0
$
164.5
$
(5.2
)
$
7.9
$
167.2
Nine Months Ended September
30, 2024
Nine Months Ended September
30, 2023
Franchised Dealerships
Segment
EchoPark Segment
Powersports Segment
Total
Franchised Dealerships
Segment
EchoPark Segment
Powersports Segment
Total
(In millions)
Net income (loss)
$
157.4
$
139.5
Provision for income taxes
16.6
47.8
Income (loss) before taxes
$
167.0
$
4.7
$
2.3
$
174.0
$
357.2
$
(179.1
)
$
9.2
$
187.3
Non-floor plan interest (1)
79.8
2.0
1.9
83.7
77.4
2.5
1.6
81.5
Depreciation & amortization (2)
95.8
16.3
3.1
115.2
87.6
20.4
2.4
110.4
Stock-based compensation expense
15.8
—
—
15.8
17.3
—
—
17.3
Loss (gain) on exit of leased
dealerships
—
(3.0
)
—
(3.0
)
—
4.3
—
4.3
Impairment charges
1.0
1.4
—
2.4
—
62.6
—
62.6
Loss on debt extinguishment
0.6
—
—
0.6
—
—
—
—
Severance and long-term compensation
charges
2.2
2.9
—
5.1
—
5.1
—
5.1
Excess compensation related to CDK
outage
13.0
0.4
—
13.4
—
—
—
—
Acquisition and disposition related (gain)
loss
(0.3
)
(3.3
)
—
(3.6
)
(20.7
)
0.3
—
(20.4
)
Storm damage charges
5.1
—
—
5.1
1.9
—
—
1.9
Used vehicle inventory valuation
adjustment
—
—
—
—
—
10.0
—
10.0
Closed store accrued expenses
$
—
$
2.1
$
—
$
2.1
$
—
$
—
$
—
$
—
Adjusted EBITDA
$
380.0
$
23.5
$
7.3
$
410.8
$
520.7
$
(73.9
)
$
13.2
$
460.0
(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 September
30, 2024
Three Months Ended September
30, 2023
Better / (Worse) %
Change
EchoPark
Operations
Closed
Stores
Total
EchoPark
Segment
EchoPark
Operations
Closed
Stores
Total
EchoPark
Segment
EchoPark
Operations
Closed
Stores
Total
EchoPark
Segment
(In millions, except unit and
per unit data)
Total revenues
$
545.5
$
(0.6
)
$
544.9
$
562.4
$
64.3
$
626.7
(3
)%
(101
)%
(13
)%
Total gross profit
$
55.8
$
(0.6
)
$
55.2
$
46.1
$
6.7
$
52.8
21
%
(109
)%
5
%
Income (loss) before taxes
$
5.6
$
(0.4
)
$
5.2
$
(8.7
)
$
(8.2
)
$
(16.9
)
164
%
95
%
131
%
Non-floor plan interest (1)
0.6
0.1
0.7
0.3
0.4
0.7
NM
NM
NM
Depreciation and amortization (2)
5.3
—
5.3
5.8
0.3
6.1
NM
NM
NM
Acquisition and disposition-related (gain)
loss
(2.3
)
—
(2.3
)
—
0.1
0.1
NM
NM
NM
Loss (gain) on exit of leased
dealerships
—
—
—
—
3.9
3.9
NM
NM
NM
Severance and long-term compensation
charges
—
—
—
—
0.9
0.9
NM
NM
NM
Adjusted EBITDA
$
9.2
$
(0.3
)
$
8.9
$
(2.6
)
$
(2.6
)
$
(5.2
)
454
%
88
%
271
%
Used vehicle unit sales volume
17,757
—
17,757
17,454
1,596
19,050
2
%
(100
)%
(7
)%
Total used vehicle and F&I gross
profit per unit
$
3,145
$
—
$
3,111
$
2,621
$
4,333
$
2,767
20
%
(100
)%
12
%
NM = Not Meaningful
Non-GAAP Reconciliation - EchoPark
Segment Operations and Closed Stores (Continued)
Nine Months Ended September
30, 2024
Nine Months Ended September
30, 2023
Better / (Worse) %
Change
EchoPark
Operations
Closed
Stores
Total
EchoPark
Segment
EchoPark
Operations
Closed
Stores
Total
EchoPark
Segment
EchoPark
Operations
Closed
Stores
Total
EchoPark
Segment
(In millions, except unit and
per unit data)
Total revenues
$
1,609.8
$
11.8
$
1,621.6
$
1,521.3
$
356.5
$
1,877.8
6
%
(97
)%
(14
)%
Total gross profit
$
160.8
$
(1.9
)
$
158.9
$
94.1
$
24.9
$
119.0
71
%
(108
)%
34
%
Income (loss) before taxes
$
12.2
$
(7.5
)
$
4.7
$
(88.0
)
$
(91.1
)
$
(179.1
)
114
%
92
%
103
%
Non-floor plan interest (1)
1.7
0.3
2.0
1.7
0.8
2.5
NM
NM
NM
Depreciation and amortization (2)
16.3
—
16.3
16.4
4.0
20.4
NM
NM
NM
Acquisition and disposition-related (gain)
loss
—
(3.3
)
(3.3
)
—
0.3
0.3
NM
NM
NM
Closed store accrued expenses
—
2.1
2.1
—
—
—
NM
NM
NM
Impairment charges
—
1.4
1.4
—
62.6
62.6
NM
NM
NM
Loss (gain) on exit of leased
dealerships
—
(3.0
)
(3.0
)
—
4.3
4.3
NM
NM
NM
Severance and long-term compensation
charges
—
2.9
2.9
—
5.1
5.1
NM
NM
NM
Excess compensation related to CDK
outage
0.4
—
0.4
—
—
—
NM
NM
NM
Used vehicle inventory valuation
adjustment
—
—
—
7.7
2.3
10.0
NM
NM
NM
Adjusted EBITDA
$
30.6
$
(7.1
)
$
23.5
$
(62.2
)
$
(11.7
)
$
(73.9
)
149
%
39
%
132
%
Used vehicle unit sales volume
52,016
363
52,379
46,534
9,580
56,114
12
%
(96
)%
(7
)%
Total used vehicle and F&I gross
profit per unit
$
3,096
$
(3,630
)
$
3,047
$
2,203
$
2,666
$
2,095
41
%
(236
)%
45
%
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/20241024198899/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
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