Previously Announced Strategic Adjustments to
EchoPark Business Expected to Enhance Near-Term Performance While
Maintaining Long-Term Strategic Plan
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 second quarter ended June 30, 2023.
Second Quarter 2023 Financial
Summary
- All-time record quarterly revenues of $3.7 billion, up 4%
year-over-year; quarterly gross profit of $568.9 million, down 3%
year-over-year
- Reported second quarter net income of $23.4 million, down 75%
year-over-year ($0.65 earnings per diluted share, down 72%
year-over-year)
- Adjusted second quarter net income* was $66.0 million, down 33%
year-over-year ($1.83 adjusted earnings per diluted share*, down
25% year-over-year)
- Reported selling, general and administrative (“SG&A”)
expenses as a percentage of gross profit of 68.9% (59.7% on a
Franchised Dealerships Segment basis)
- Adjusted SG&A expenses as a percentage of gross profit* of
70.5% (63.3% on a Franchised Dealerships Segment basis)
- EchoPark Segment revenues of $600.6 million, down 9%
year-over-year; EchoPark Segment gross profit of $26.8 million,
down 44% year-over-year; EchoPark Segment retail used vehicle unit
sales volume of 17,084, up 4% year-over-year
EchoPark Update
- Completed previously announced plan to indefinitely suspend
operations at eight EchoPark retail hub locations and 14 related
EchoPark delivery/buy centers, plus three Northwest Motorsport
locations within the EchoPark Segment (collectively, the "closed
EchoPark stores"), representing a total of $13.2 million of segment
loss in the second quarter of 2023
- Recorded a second quarter 2023 charge related to the closed
EchoPark stores of approximately $75.2 million, including $62.6
million of non-cash impairment charges, $2.2 million of severance,
$0.4 million of non-cash lease exit charges and $10.0 million of
non-cash inventory valuation adjustments (of which $7.7 million
relates to stores with ongoing operations)
- Expect ongoing expenses associated with the closed EchoPark
stores of approximately $2.5 million to $3.0 million per
quarter
- Reiterate previously issued guidance of an expected return to
breakeven EchoPark Segment adjusted EBITDA* in the first quarter of
2024
* Represents a non-GAAP financial measure - please refer to the
discussion and reconciliation of non-GAAP financial measures
below.
Management Commentary
David Smith, Chairman and Chief Executive Officer of Sonic
Automotive, stated, “Our team remains focused on executing our
strategic plan and adapting our business to an evolving industry
backdrop. I am extremely proud of our team's continued efforts to
maximize profitability in the near-term, while positioning Sonic
for long-term success. We believe the strategic investments in our
business and our teammates will allow us to continue to deliver an
exceptional guest experience while generating returns for our
stockholders in the long run.”
Jeff Dyke, President of Sonic Automotive, commented, “Our team's
combined decades of experience in the automotive retail industry
has taught us that making tough business decisions in the
short-term can pay dividends over time. We remain confident in the
long-term potential for EchoPark and believe that the steps we have
taken to improve near-term financial performance will position us
to achieve our strategic goals. In the meantime, our franchised
dealerships and powersports teams continue to perform at a high
level, maintaining our focus on profitability enhancements and cash
flow generation as market conditions begin to normalize.”
Heath Byrd, Chief Financial Officer of Sonic Automotive, added,
“Our strong balance sheet and cash flows provide us with the
flexibility to continue to enhance our diversified business model
and adapt to changes in the macroeconomic and industry backdrop. As
of June 30, 2023, we had $864 million of liquidity, including $407
million in cash and floor plan deposits on hand. With the
improvements we have made to the EchoPark cost structure, we
believe we remain well-positioned to achieve our financial goals
and continue to deliver long-term returns for our
stockholders.”
Second Quarter 2023 Segment
Highlights
The financial measures discussed below are results for the
second quarter of 2023 with comparisons made to the second quarter
of 2022, unless otherwise noted.
- Franchised Dealerships Segment operating results include:
- Same store revenues up 6%; same store gross profit down 2%
- Same store retail new vehicle unit sales volume up 12%; same
store retail new vehicle gross profit per unit down 25%, to
$4,986
- Same store retail used vehicle unit sales volume down 10%; same
store retail used vehicle gross profit per unit down 3%, to
$1,618
- Same store parts, service and collision repair (“Fixed
Operations”) gross profit up 9%; same store customer pay gross
profit up 11%; same store warranty gross profit up 6%; same store
Fixed Operations gross margin down 10 basis points, to 49.6%
- Same store finance and insurance ("F&I") gross profit up
4%; same store F&I gross profit per retail unit of $2,522, up
4% (all-time record quarterly Franchised Dealerships Segment
F&I per unit of $2,516, up 2%)
- On a trailing quarter cost of sales basis, the Franchised
Dealerships Segment had 30 days’ supply of new vehicle inventory
(including in-transit) and 31 days’ supply of used vehicle
inventory
- EchoPark Segment operating results include:
- Revenues of $600.6 million, down 9%; gross profit of $26.8
million, down 44% (reported gross profit includes a $10.0 million
charge related to used vehicle inventory valuation adjustments)
- Revenues from the closed EchoPark stores were $74.4 million,
down 30%; gross profit from the closed EchoPark stores was $3.1,
down 37%
- Retail used vehicle unit sales volume of 17,084, up 4%
- Retail used vehicle unit sales volume from the closed EchoPark
stores was 2,324 units (14% of EchoPark Segment retail used vehicle
unit sales volume)
- Reported segment loss of $52.8 million, adjusted segment loss*
of $40.0 million, and adjusted EBITDA* loss of $31.8 million
- Reported segment loss from the closed EchoPark stores was $13.2
million
- Retail used vehicle unit sales volume was comprised of 82%
1-4-year-old vehicles and 18% 5-plus-year-old vehicles, with 23% of
retail used vehicle unit sales volume sourced from non-auction
sources
- On a trailing quarter cost of sales basis, the EchoPark Segment
had 39 days’ supply of used vehicle inventory
- Powersports Segment operating results include:
- Revenues of $45.0 million, gross profit of $12.8 million, gross
margin of 28.5%
- Segment income of $2.0 million and adjusted EBITDA* of $3.4
million
- Year-over-year comparative financial results are not meaningful
due to the timing of acquisitions of Horny Toad Harley-Davidson in
Temple, Texas (one store acquired in January 2022), Team Mancuso
Powersports in Houston, Texas (seven stores acquired in August
2022), and Black Hills Harley-Davidson in Sturgis, South Dakota
(five stores acquired in February 2023)
* Represents a non-GAAP financial measure - please refer to the
discussion and reconciliation of non-GAAP financial measures
below.
Acquisition and Disposition
Activity
During the second quarter of 2023, Sonic disposed of three
franchised dealerships in Alabama and North Carolina, which
generated net cash from disposition of approximately $52.3 million
and a net gain on disposition of approximately $20.9 million. These
disposed stores represent projected annualized revenues of
approximately $170 million and projected annualized pre-tax income
of approximately $5 million.
Dividend
Sonic’s Board of Directors approved a quarterly cash dividend of
$0.29 per share, payable on October 13, 2023 to all stockholders of
record on September 15, 2023.
Second Quarter 2023 Earnings Conference
Call
Senior management will hold a conference call today at 11:00
A.M. (Eastern). Investor presentation and earnings press release
materials will be accessible beginning prior to the conference call
on the Company’s website at ir.sonicautomotive.com.
To access the live webcast of the conference call, please go to
ir.sonicautomotive.com and select the webcast link at the top of
the page. For telephone access to this conference call, please dial
(866) 682-6100 (domestic) or +1 (862) 298-0702 (international) and
ask to be connected to the Sonic Automotive Second Quarter 2023
Earnings Conference Call. Dial-in access remains available
throughout the live call; however, to ensure you are connected for
the full call we suggest dialing in at least 10 minutes before the
start of the call. A webcast replay will be available following the
call for 14 days at ir.sonicautomotive.com.
About Sonic Automotive
Sonic Automotive, Inc., a Fortune 500 company based in
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 retailers in
America, we are committed to delivering on this goal while pursuing
expansive growth and taking progressive measures to be the leader
in this category. Our new platforms, programs, and people are set
to drive the next generation of automotive 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 at number one among
national pre-owned vehicle retailers in products, sales, and
service based on Google Reviews between April 2021 through April
2022, 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,
anticipated future EchoPark adjusted EBITDA, and anticipated future
expenses related to closed locations. There are many factors that
affect management’s views about future events and trends of the
Company’s business. These factors involve risks and uncertainties
that could cause actual results or trends to differ materially from
management’s views, including, without limitation, economic
conditions in the markets in which we operate, supply chain
disruptions and manufacturing delays, labor shortages, the impacts
of inflation and increases in interest rates, new and used vehicle
industry sales volume, future levels of consumer demand for new and
used vehicles, anticipated future growth in each of our operating
segments, the success of our operational strategies, the rate and
timing of overall economic expansion or contraction, the
integration of recent or future acquisitions, and the risk factors
described in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2022 and other reports and information filed
with the United States Securities and Exchange Commission (the
“SEC”). The Company does not undertake any obligation to update
forward-looking information, except as required under federal
securities laws and the rules and regulations of the SEC.
Non-GAAP Financial
Measures
This press release and the attached financial tables contain
certain non-GAAP financial measures as defined under SEC rules,
such as adjusted net income, adjusted earnings per diluted share,
adjusted SG&A expenses as a percentage of gross profit,
adjusted segment loss, and adjusted EBITDA. As required by SEC
rules, the Company has provided reconciliations of these non-GAAP
financial measures to the most directly comparable GAAP financial
measures in the schedules included in this press release. The
Company believes that these non-GAAP financial measures improve the
transparency of the Company’s disclosures and provide a meaningful
presentation of the Company’s results.
Sonic Automotive, Inc.
Results of Operations
(Unaudited)
Results of Operations -
Consolidated
Three Months Ended June
30,
Better / (Worse)
Six Months Ended June
30,
Better / (Worse)
2023
2022
% Change
2023
2022
% Change
(In millions, except per share
amounts)
Revenues:
Retail new vehicles
$
1,608.2
$
1,344.3
20
%
$
3,051.0
$
2,695.6
13
%
Fleet new vehicles
28.3
19.8
43
%
47.1
38.0
24
%
Total new vehicles
1,636.5
1,364.1
20
%
3,098.1
2,733.6
13
%
Used vehicles
1,305.9
1,448.3
(10
)%
2,650.8
2,818.4
(6
)%
Wholesale vehicles
91.5
121.4
(25
)%
177.0
290.2
(39
)%
Total vehicles
3,033.9
2,933.8
3
%
5,925.9
5,842.2
1
%
Parts, service and collision repair
443.7
399.2
11
%
874.2
780.5
12
%
Finance, insurance and other, net
175.3
173.2
1
%
344.0
339.7
1
%
Total revenues
3,652.9
3,506.2
4
%
7,144.1
6,962.4
3
%
Cost of sales:
Retail new vehicles
(1,466.8
)
(1,176.0
)
(25
)%
(2,771.5
)
(2,359.6
)
(17
)%
Fleet new vehicles
(27.0
)
(18.9
)
(43
)%
(45.0
)
(36.2
)
(24
)%
Total new vehicles
(1,493.8
)
(1,194.9
)
(25
)%
(2,816.5
)
(2,395.8
)
(18
)%
Used vehicles
(1,274.4
)
(1,401.7
)
9
%
(2,589.3
)
(2,724.0
)
5
%
Wholesale vehicles
(92.5
)
(120.2
)
23
%
(174.9
)
(287.6
)
39
%
Total vehicles
(2,860.7
)
(2,716.8
)
(5
)%
(5,580.7
)
(5,407.4
)
(3
)%
Parts, service and collision repair
(223.3
)
(200.6
)
(11
)%
(440.9
)
(394.9
)
(12
)%
Total cost of sales
(3,084.0
)
(2,917.4
)
(6
)%
(6,021.6
)
(5,802.3
)
(4
)%
Gross profit
568.9
588.8
(3
)%
1,122.5
1,160.1
(3
)%
Selling, general and administrative
expenses
(391.9
)
(402.8
)
3
%
(804.7
)
(789.8
)
(2
)%
Impairment charges
(62.6
)
—
(100
)%
(62.6
)
—
(100
)%
Depreciation and amortization
(36.1
)
(31.2
)
(16
)%
(70.5
)
(61.1
)
(15
)%
Operating income (loss)
78.3
154.8
(49
)%
184.7
309.2
(40
)%
Other income (expense):
Interest expense, floor plan
(17.0
)
(6.1
)
(179
)%
(31.5
)
(11.1
)
(184
)%
Interest expense, other, net
(28.9
)
(21.3
)
(36
)%
(57.3
)
(42.1
)
(36
)%
Other income (expense), net
0.1
(0.2
)
150
%
0.2
0.1
100
%
Total other income (expense)
(45.8
)
(27.6
)
(66
)%
(88.6
)
(53.1
)
(67
)%
Income (loss) before taxes
32.5
127.2
(74
)%
96.1
256.1
(62
)%
Provision for income taxes - benefit
(expense)
(9.1
)
(32.4
)
72
%
(25.0
)
(64.0
)
61
%
Net income (loss)
$
23.4
$
94.8
(75
)%
$
71.1
$
192.1
(63
)%
Basic earnings (loss) per common share
$
0.66
$
2.40
(73
)%
$
2.00
$
4.81
(58
)%
Basic weighted-average common shares
outstanding
35.3
39.5
11
%
35.6
40.0
11
%
Diluted earnings (loss) per common
share
$
0.65
$
2.34
(72
)%
$
1.95
$
4.67
(58
)%
Diluted weighted-average common shares
outstanding
36.0
40.5
11
%
36.5
41.2
12
%
Dividends declared per common share
$
0.29
$
0.25
16
%
$
0.57
$
0.37
54
%
Franchised Dealerships Segment -
Reported
Three Months Ended June
30,
Better / (Worse)
Six Months Ended June
30,
Better / (Worse)
2023
2022
% Change
2023
2022
% Change
(In millions, except unit and
per unit data)
Revenues:
Retail new vehicles
$
1,583.3
$
1,341.7
18
%
$
3,004.3
$
2,687.4
12
%
Fleet new vehicles
28.3
19.9
42
%
47.1
38.0
24
%
Total new vehicles
1,611.6
1,361.6
18
%
3,051.4
2,725.4
12
%
Used vehicles
774.5
871.9
(11
)%
1,542.0
1,725.7
(11
)%
Wholesale vehicles
55.6
79.2
(30
)%
114.0
185.5
(39
)%
Total vehicles
2,441.7
2,312.7
6
%
4,707.4
4,636.6
2
%
Parts, service and collision repair
433.4
398.1
9
%
857.2
778.7
10
%
Finance, insurance and other, net
132.2
129.8
2
%
249.4
256.2
(3
)%
Total revenues
3,007.3
2,840.6
6
%
5,814.0
5,671.5
3
%
Gross Profit:
Retail new vehicles
136.9
167.3
(18
)%
270.9
333.8
(19
)%
Fleet new vehicles
1.3
0.9
44
%
2.1
1.8
17
%
Total new vehicles
138.2
168.2
(18
)%
273.0
335.6
(19
)%
Used vehicles
44.5
43.7
2
%
85.3
90.6
(6
)%
Wholesale vehicles
(1.0
)
(0.5
)
(100
)%
1.0
(0.9
)
211
%
Total vehicles
181.7
211.4
(14
)%
359.3
425.3
(16
)%
Parts, service and collision repair
215.4
198.1
9
%
425.0
384.8
10
%
Finance, insurance and other, net
132.2
129.8
2
%
249.4
256.2
(3
)%
Total gross profit
529.3
539.3
(2
)%
1,033.7
1,066.3
(3
)%
Selling, general and administrative
expenses
(316.1
)
(327.5
)
3
%
(647.3
)
(642.9
)
(1
)%
Impairment charges
—
—
—
%
—
—
—
%
Depreciation and amortization
(27.9
)
(25.3
)
(10
)%
(54.5
)
(50.0
)
(9
)%
Operating income (loss)
185.3
186.5
(1
)%
331.9
373.4
(11
)%
Other income (expense):
Interest expense, floor plan
(11.9
)
(3.9
)
(205
)%
(21.8
)
(7.2
)
(203
)%
Interest expense, other, net
(27.5
)
(20.2
)
(36
)%
(54.4
)
(40.3
)
(35
)%
Other income (expense), net
—
(0.3
)
100
%
0.1
0.1
—
%
Total other income (expense)
(39.4
)
(24.4
)
(61
)%
(76.1
)
(47.4
)
(61
)%
Income (loss) before taxes
145.9
162.1
(10
)%
255.8
326.0
(22
)%
Add: Impairment charges
—
—
—
%
—
—
—
%
Segment income (loss)
$
145.9
$
162.1
(10
)%
$
255.8
$
326.0
(22
)%
Unit Sales Volume:
Retail new vehicles
27,358
24,342
12
%
51,897
48,944
6
%
Fleet new vehicles
590
422
40
%
1,031
782
32
%
Total new vehicles
27,948
24,764
13
%
52,928
49,726
6
%
Used vehicles
25,197
28,156
(11
)%
50,304
55,234
(9
)%
Wholesale vehicles
5,516
5,851
(6
)%
10,999
12,623
(13
)%
Retail new & used vehicles
52,555
52,498
—
%
102,201
104,178
(2
)%
Used-to-New Ratio
0.92
1.16
(21
)%
0.97
1.13
(14
)%
Gross Profit Per Unit:
Retail new vehicles
$
5,003
$
6,871
(27
)%
$
5,221
$
6,821
(23
)%
Fleet new vehicles
$
2,099
$
2,235
(6
)%
$
2,065
$
2,285
(10
)%
New vehicles
$
4,942
$
6,792
(27
)%
$
5,159
$
6,749
(24
)%
Used vehicles
$
1,765
$
1,553
14
%
$
1,695
$
1,640
3
%
Finance, insurance and other, net
$
2,516
$
2,472
2
%
$
2,440
$
2,460
(1
)%
NM = Not Meaningful
Franchised Dealerships Segment - Same
Store
Three Months Ended June
30,
Better / (Worse)
Six Months Ended June
30,
Better / (Worse)
2023
2022
% Change
2023
2022
% Change
(In millions, except unit and
per unit data)
Revenues:
Retail new vehicles
$
1,558.2
$
1,323.9
18
%
$
2,953.7
$
2,653.8
11
%
Fleet new vehicles
28.4
19.9
43
%
47.2
38.0
24
%
Total new vehicles
1,586.6
1,343.8
18
%
3,000.9
2,691.8
11
%
Used vehicles
761.9
857.2
(11
)%
1,513.4
1,695.2
(11
)%
Wholesale vehicles
54.5
78.3
(30
)%
112.0
183.0
(39
)%
Total vehicles
2,403.0
2,279.3
5
%
4,626.3
4,570.0
1
%
Parts, service and collision repair
427.3
392.5
9
%
843.5
767.9
10
%
Finance, insurance and other, net
130.1
124.8
4
%
245.4
246.2
—
%
Total revenues
2,960.4
2,796.6
6
%
5,715.2
5,584.1
2
%
Gross Profit:
Retail new vehicles
133.8
160.0
(16
)%
265.1
319.1
(17
)%
Fleet new vehicles
1.2
0.9
33
%
2.1
1.8
17
%
Total new vehicles
135.1
161.0
(16
)%
267.2
320.9
(17
)%
Used vehicles
40.0
45.9
(13
)%
78.5
93.0
(16
)%
Wholesale vehicles
(0.3
)
(0.6
)
50
%
1.4
(0.9
)
256
%
Total vehicles
174.8
206.3
(15
)%
347.1
413.0
(16
)%
Parts, service and collision repair
212.0
195.2
9
%
417.5
379.1
10
%
Finance, insurance and other, net
130.1
124.8
4
%
245.4
246.2
—
%
Total gross profit
$
516.9
$
526.3
(2
)%
$
1,010.0
$
1,038.3
(3
)%
Unit Sales Volume:
Retail new vehicles
26,844
23,936
12
%
50,840
48,170
6
%
Fleet new vehicles
590
422
40
%
1,031
782
32
%
Total new vehicles
27,434
24,358
13
%
51,871
48,952
6
%
Used vehicles
24,737
27,596
(10
)%
49,260
54,099
(9
)%
Wholesale vehicles
5,418
5,764
(6
)%
10,790
12,426
(13
)%
Retail new & used vehicles
51,581
51,532
—
%
100,100
102,269
(2
)%
Used-to-New Ratio
0.92
1.15
(20
)%
0.97
1.12
(13
)%
Gross Profit Per Unit:
Retail new vehicles
$
4,986
$
6,686
(25
)%
$
5,215
$
6,624
(21
)%
Fleet new vehicles
$
2,099
$
2,235
(6
)%
$
2,065
$
2,285
(10
)%
New vehicles
$
4,924
$
6,609
(25
)%
$
5,152
$
6,555
(21
)%
Used vehicles
$
1,618
$
1,663
(3
)%
$
1,593
$
1,718
(7
)%
Finance, insurance and other, net
$
2,522
$
2,422
4
%
$
2,452
$
2,407
2
%
NM = Not Meaningful
Note: All currently operating franchised
dealership stores are included within the same store group as of
the first full month following the first anniversary of the store’s
opening or acquisition.
EchoPark Segment - Reported
Three Months Ended June
30,
Better / (Worse)
Six Months Ended June
30,
Better / (Worse)
2023
2022
% Change
2023
2022
% Change
(In millions, except unit and
per unit data)
Revenues:
Retail new vehicles
$
—
$
1.3
(100
)%
$
1.0
$
5.7
(82
)%
Used vehicles
524.0
574.5
(9
)%
1,096.5
1,089.8
1
%
Wholesale vehicles
35.5
42.0
(15
)%
62.5
104.5
(40
)%
Total vehicles
559.5
617.8
(9
)%
1,160.0
1,200.0
(3
)%
Finance, insurance and other, net
41.1
43.1
(5
)%
91.1
83.0
10
%
Total revenues
600.6
660.9
(9
)%
1,251.1
1,283.0
(2
)%
Gross Profit:
Retail new vehicles
—
0.6
(100
)%
0.1
1.6
(94
)%
Used vehicles
(14.3
)
2.4
(696
)%
(26.2
)
3.1
(945
)%
Wholesale vehicles
—
1.7
(100
)%
1.2
3.4
(65
)%
Total vehicles
(14.3
)
4.7
(404
)%
(24.9
)
8.1
(407
)%
Finance, insurance and other, net
41.1
43.1
(5
)%
91.1
83.0
10
%
Total gross profit
26.8
47.8
(44
)%
66.2
91.1
(27
)%
Selling, general and administrative
expenses
(66.6
)
(73.0
)
9
%
(140.4
)
(144.1
)
3
%
Impairment charges
(62.6
)
—
(100
)%
(62.6
)
—
(100
)%
Depreciation and amortization
(7.4
)
(5.8
)
(28
)%
(14.4
)
(10.9
)
(32
)%
Operating income (loss)
(109.8
)
(31.0
)
(254
)%
(151.2
)
(63.9
)
(137
)%
Other income (expense):
Interest expense, floor plan
(4.8
)
(2.2
)
(118
)%
(9.3
)
(3.9
)
(138
)%
Interest expense, other, net
(0.9
)
(1.1
)
18
%
(1.8
)
(1.8
)
—
%
Other income (expense), net
0.1
0.1
—
%
—
—
—
%
Total other income (expense)
(5.6
)
(3.2
)
(75
)%
(11.1
)
(5.7
)
(95
)%
Income (loss) before taxes
(115.4
)
(34.2
)
(237
)%
(162.3
)
(69.6
)
(133
)%
Add: Impairment charges
62.6
—
100
%
62.6
—
100
%
Segment income (loss)
$
(52.8
)
$
(34.2
)
(54
)%
$
(99.7
)
$
(69.6
)
(43
)%
Unit Sales Volume:
Retail new vehicles
—
37
(100
)%
11
81
(86
)%
Used vehicles
17,084
16,496
4
%
37,064
31,427
18
%
Wholesale vehicles
3,235
2,694
20
%
6,151
6,343
(3
)%
Gross Profit Per Unit:
Total used vehicle and F&I
$
1,569
$
2,751
(43
)%
$
1,750
$
2,730
(36
)%
NM = Not Meaningful
EchoPark Segment - Same Market
Three Months Ended June
30,
Better / (Worse)
Six Months Ended June
30,
Better / (Worse)
2023
2022
% Change
2023
2022
% Change
(In millions, except unit and
per unit data)
Revenues:
Used vehicles
$
422.3
$
338.7
25
%
$
875.9
$
621.2
41
%
Wholesale vehicles
23.7
26.8
(12
)%
43.9
72.2
(39
)%
Total vehicles
446.0
365.5
22
%
919.8
693.4
33
%
Finance, insurance and other, net
33.0
25.2
31
%
73.4
47.5
55
%
Total revenues
479.0
390.7
23
%
993.2
740.9
34
%
Gross Profit:
Used vehicles
(2.2
)
(2.1
)
(5
)%
(10.6
)
(5.4
)
(96
)%
Wholesale vehicles
0.1
1.3
(92
)%
1.1
3.0
(63
)%
Total vehicles
(2.1
)
(0.8
)
(163
)%
(9.5
)
(2.4
)
(296
)%
Finance, insurance and other, net
33.0
25.2
31
%
73.4
47.5
55
%
Total gross profit
$
30.9
$
24.4
27
%
$
63.9
$
45.1
42
%
Unit Sales Volume:
Used vehicles
13,732
10,104
36
%
29,823
18,791
59
%
Wholesale vehicles
2,462
1,849
33
%
4,736
4,452
6
%
Gross Profit Per Unit:
Total used vehicle and F&I
$
2,244
$
2,290
(2
)%
$
2,107
$
2,241
(6
)%
Note: All currently operating EchoPark
stores in a local geographic market are included within the same
market group as of the first full month following the first
anniversary of the market's opening.
Powersports Segment - Reported
Three Months Ended June
30,
Better / (Worse)
Six Months Ended June
30,
Better / (Worse)
2023
2022
% Change
2023
2022
% Change
(In millions, except unit and
per unit data)
Revenues:
Retail new vehicles
$
24.9
$
1.2
NM
$
45.7
$
2.5
NM
Used vehicles
7.4
1.9
NM
12.3
2.9
NM
Wholesale vehicles
0.4
0.2
NM
0.5
0.2
NM
Total vehicles
32.7
3.3
NM
58.5
5.6
NM
Parts, service and collision repair
10.3
1.1
NM
17.0
1.8
NM
Finance, insurance and other, net
2.0
0.3
NM
3.5
0.5
NM
Total revenues
45.0
4.7
NM
79.0
7.9
NM
Gross Profit:
Retail new vehicles
4.5
0.4
NM
8.5
0.6
NM
Used vehicles
1.3
0.5
NM
2.4
0.7
NM
Wholesale vehicles
—
—
NM
(0.1
)
—
NM
Total vehicles
5.8
0.9
NM
10.8
1.3
NM
Parts, service and collision repair
5.0
0.5
NM
8.3
0.9
NM
Finance, insurance and other, net
2.0
0.3
NM
3.5
0.5
NM
Total gross profit
12.8
1.7
NM
22.6
2.7
NM
Selling, general and administrative
expenses
(9.2
)
(2.3
)
NM
(17.0
)
(2.8
)
NM
Depreciation and amortization
(0.8
)
(0.1
)
NM
(1.6
)
(0.2
)
NM
Operating income (loss)
2.8
(0.7
)
NM
4.0
(0.3
)
NM
Other income (expense):
Interest expense, floor plan
(0.3
)
—
NM
(0.4
)
—
NM
Interest expense, other, net
(0.5
)
—
NM
(1.1
)
—
NM
Other income (expense), net
—
—
NM
0.1
—
NM
Total other income (expense)
(0.8
)
—
NM
(1.4
)
—
NM
Income (loss) before taxes
2.0
(0.7
)
NM
2.6
(0.3
)
NM
Add: Impairment charges
—
—
NM
—
—
NM
Segment income (loss)
$
2.0
$
(0.7
)
NM
$
2.6
$
(0.3
)
NM
Unit Sales Volume:
Retail new vehicles
1,396
48
NM
2,503
89
NM
Used vehicles
691
112
NM
1,135
176
NM
Wholesale vehicles
50
—
NM
57
—
NM
Gross Profit Per Unit:
Retail new vehicles
$
3,235
$
7,401
NM
$
3,385
$
7,156
NM
Used vehicles
$
1,942
$
4,196
NM
$
2,093
$
4,028
NM
Finance, insurance and other, net
$
952
$
1,933
NM
$
964
$
1,818
NM
NM = Not Meaningful
Note: Year-over-year comparative financial
results are not meaningful due to the timing of acquisitions of
Horny Toad Harley-Davidson in Temple, Texas (one store acquired in
January 2022), Team Mancuso Powersports in Houston, Texas (seven
stores acquired in August 2022), and Black Hills Harley-Davidson in
Sturgis, South Dakota (five stores acquired in February 2023).
Non-GAAP Reconciliation - Consolidated
- SG&A Expenses
Three Months Ended June
30,
Better / (Worse)
2023
2022
Change
% Change
(In millions)
Reported:
Compensation
$
261.0
$
266.4
$
5.4
2
%
Advertising
22.8
25.6
2.8
11
%
Rent
11.5
13.7
2.2
16
%
Other
96.6
97.1
0.5
1
%
Total SG&A expenses
$
391.9
$
402.8
$
10.9
3
%
Adjustments:
Acquisition and disposition-related gain
(loss)
$
20.7
$
—
Hail and storm damage charges
(1.9
)
—
Lease exit charges
(0.4
)
—
Severance and long-term compensation
charges
(2.2
)
(4.4
)
Total SG&A adjustments
$
16.2
$
(4.4
)
Adjusted:
Total adjusted SG&A expenses
$
408.1
$
398.4
$
(9.7
)
(2
)%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
45.9
%
45.2
%
(70
)
bps
Advertising
4.0
%
4.3
%
30
bps
Rent
2.0
%
2.3
%
30
bps
Other
17.0
%
16.6
%
(40
)
bps
Total SG&A expenses as a % of gross
profit
68.9
%
68.4
%
(50
)
bps
Adjustments:
Acquisition and disposition-related gain
(loss)
2.0
%
—
%
Hail and storm damage charges
(0.2
)%
—
%
Lease exit charges
—
%
—
%
Severance and long-term compensation
charges
(0.2
)%
(0.7
)%
Total effect of adjustments
1.6
%
(0.7
)%
Adjusted:
Total adjusted SG&A expenses as a % of
gross profit
70.5
%
67.7
%
(280
)
bps
Reported:
Total gross profit
$
568.9
$
588.8
$
(19.9
)
(3
)%
Adjustments:
Used vehicle inventory valuation
adjustment
$
10.0
$
—
Total adjustments
$
10.0
$
—
Adjusted:
Total adjusted gross profit
$
578.9
$
588.8
$
(9.9
)
(2
)%
Non-GAAP Reconciliation - Consolidated
- SG&A Expenses (Continued)
Six Months Ended June
30,
Better / (Worse)
2023
2022
Change
% Change
(In millions)
Reported:
Compensation
$
519.7
$
518.9
$
(0.8
)
—
%
Advertising
48.9
51.7
2.8
5
%
Rent
22.8
26.4
3.6
14
%
Other
213.3
192.8
(20.5
)
(11
)%
Total SG&A expenses
$
804.7
$
789.8
$
(14.9
)
(2
)%
Adjustments:
Acquisition and disposition-related gain
(loss)
$
20.7
$
—
Hail and storm damage charges
(1.9
)
—
Lease exit charges
(0.4
)
—
Severance and long-term compensation
charges
(4.2
)
(4.4
)
Total SG&A adjustments
$
14.2
$
(4.4
)
Adjusted:
Total adjusted SG&A expenses
$
818.9
$
785.4
$
(33.5
)
(4
)%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
46.3
%
44.7
%
(160
)
bps
Advertising
4.4
%
4.5
%
10
bps
Rent
2.0
%
2.3
%
30
bps
Other
19.0
%
16.6
%
(240
)
bps
Total SG&A expenses as a % of gross
profit
71.7
%
68.1
%
(360
)
bps
Adjustments:
Acquisition and disposition-related gain
(loss)
0.9
%
—
%
Hail and storm damage charges
(0.1
)%
—
%
Lease exit charges
—
%
—
%
Severance and long-term compensation
charges
(0.2
)%
(0.4
)%
Total effect of adjustments
0.6
%
(0.4
)%
Adjusted:
Total adjusted SG&A expenses as a % of
gross profit
72.3
%
67.7
%
(460
)
bps
Reported:
Total gross profit
$
1,122.5
$
1,160.1
$
(37.6
)
(3
)%
Adjustments:
Used vehicle inventory valuation
adjustment
$
10.0
$
—
Total adjustments
$
10.0
$
—
Adjusted:
Total adjusted gross profit
$
1,132.5
$
1,160.1
$
(27.6
)
(2
)%
Non-GAAP Reconciliation - Franchised
Dealerships Segment - SG&A Expenses
Three Months Ended June
30,
Better / (Worse)
2023
2022
Change
% Change
(In millions)
Reported:
Compensation
$
219.0
$
225.9
$
6.9
3
%
Advertising
8.7
7.8
(0.9
)
(12
)%
Rent
9.4
11.0
1.6
15
%
Other
79.0
82.8
3.8
5
%
Total SG&A expenses
$
316.1
$
327.5
$
11.4
3
%
Adjustments:
Acquisition and disposition-related gain
(loss)
$
20.9
$
—
Hail and storm damage charges
(1.9
)
—
Long-term compensation charges
—
(4.4
)
Total SG&A adjustments
$
19.0
$
(4.4
)
Adjusted:
Total adjusted SG&A expenses
$
335.1
$
323.1
$
(12.0
)
(4
)%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
41.4
%
41.9
%
50
bps
Advertising
1.6
%
1.4
%
(20
)
bps
Rent
1.8
%
2.0
%
20
bps
Other
14.9
%
15.4
%
50
bps
Total SG&A expenses as a % of gross
profit
59.7
%
60.7
%
100
bps
Adjustments:
Acquisition and disposition-related gain
(loss)
4.0
%
—
%
Hail and storm damage charges
(0.4
)%
—
%
Long-term compensation charges
—
%
(0.8
)%
Total effect of adjustments
3.6
%
(0.8
)%
Adjusted:
Total adjusted SG&A expenses as a % of
gross profit
63.3
%
59.9
%
(340
)
bps
Reported:
Total gross profit
$
529.3
$
539.3
$
(10.0
)
(2
)%
Non-GAAP Reconciliation - Franchised
Dealerships Segment - SG&A Expenses (Continued)
Six Months Ended June
30,
Better / (Worse)
2023
2022
Change
% Change
(In millions)
Reported:
Compensation
$
432.8
$
441.0
$
8.2
2
%
Advertising
18.6
15.6
(3.0
)
(19
)%
Rent
19.5
21.9
2.4
11
%
Other
176.4
164.4
(12.0
)
(7
)%
Total SG&A expenses
$
647.3
$
642.9
$
(4.4
)
(1
)%
Adjustments:
Acquisition and disposition-related gain
(loss)
$
20.9
$
—
Hail and storm damage charges
(1.9
)
—
Long-term compensation charges
—
(4.4
)
Total SG&A adjustments
$
19.0
$
(4.4
)
Adjusted:
Total adjusted SG&A expenses
$
666.3
$
638.5
$
(27.8
)
(4
)%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
41.9
%
41.4
%
(50
)
bps
Advertising
1.8
%
1.5
%
(30
)
bps
Rent
1.9
%
2.1
%
20
bps
Other
17.0
%
15.3
%
(170
)
bps
Total SG&A expenses as a % of gross
profit
62.6
%
60.3
%
(230
)
bps
Adjustments:
Acquisition and disposition-related gain
(loss)
2.1
%
—
%
Hail and storm damage charges
(0.2
)%
—
%
Long-term compensation charges
—
%
(0.4
)%
Total effect of adjustments
1.9
%
(0.4
)%
Adjusted:
Total adjusted SG&A expenses as a % of
gross profit
64.5
%
59.9
%
(460
)
bps
Reported:
Total gross profit
$
1,033.6
$
1,066.3
$
(32.7
)
(3
)%
Non-GAAP Reconciliation - EchoPark
Segment - SG&A Expenses
Three Months Ended June
30,
Better / (Worse)
2023
2022
Change
% Change
(In millions)
Reported:
Compensation
$
35.4
$
38.6
$
3.2
8
%
Advertising
13.7
17.8
4.1
23
%
Rent
2.1
2.7
0.6
22
%
Other
15.4
13.9
(1.5
)
(11
)%
Total SG&A expenses
$
66.6
$
73.0
$
6.4
9
%
Adjustments:
Acquisition and disposition-related gain
(loss)
$
(0.2
)
$
—
Lease exit charges
(0.4
)
—
Severance charges
(2.2
)
—
Total SG&A adjustments
$
(2.8
)
$
—
Adjusted:
Total adjusted SG&A expenses
$
63.8
$
73.0
$
9.2
12.6
%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
132.2
%
80.8
%
NM
Advertising
51.2
%
37.1
%
NM
Rent
8.0
%
5.7
%
(230
)
bps
Other
57.1
%
29.0
%
NM
Total SG&A expenses as a % of gross
profit
248.5
%
152.6
%
NM
Adjustments:
Acquisition and disposition-related gain
(loss)
(5.4
)%
—
%
Lease exit charges
(10.7
)%
—
%
Severance charges
(58.9
)%
—
%
Total effect of adjustments
(75.0
)%
—
%
Adjusted:
Total adjusted SG&A expenses as a % of
gross profit
173.5
%
152.6
%
NM
Reported:
Total gross profit
$
26.8
$
47.8
$
(21.0
)
(44
)%
Adjustments:
Used vehicle inventory valuation
adjustment
$
10.0
$
—
Total adjustments
$
10.0
$
—
Adjusted:
Total adjusted gross profit
$
36.8
$
47.8
$
(11.0
)
(23
)%
NM = Not Meaningful
Non-GAAP Reconciliation - EchoPark
Segment - SG&A Expenses (Continued)
Six Months Ended June
30,
Better / (Worse)
2023
2022
Change
% Change
(In millions)
Reported:
Compensation
$
75.1
$
75.7
$
0.6
1
%
Advertising
29.5
36.0
6.5
18
%
Rent
3.2
4.5
1.3
29
%
Other
32.6
27.9
(4.7
)
(17
)%
Total SG&A expenses
$
140.4
$
144.1
$
3.7
3
%
Adjustments:
Acquisition and disposition-related gain
(loss)
$
(0.2
)
$
—
Lease exit charges
(0.4
)
—
Severance and long-term compensation
charges
(4.2
)
—
Total SG&A adjustments
$
(4.8
)
$
—
Adjusted:
Total adjusted SG&A expenses
$
135.6
$
144.1
$
8.5
5.9
%
Reported:
SG&A expenses as a % of gross
profit:
Compensation
113.4
%
83.1
%
NM
Advertising
44.5
%
39.6
%
(490
)
bps
Rent
4.9
%
4.9
%
—
bps
Other
49.2
%
30.6
%
NM
Total SG&A expenses as a % of gross
profit
212.0
%
158.2
%
NM
Adjustments:
Acquisition and disposition-related gain
(loss)
(1.4
)%
—
%
Lease exit charges
(2.8
)%
—
%
Severance and long-term compensation
charges
(29.8
)%
—
%
Total effect of adjustments
(34.1
)%
—
%
Adjusted:
Total adjusted SG&A expenses as a % of
gross profit
177.9
%
158.2
%
NM
Reported:
Total gross profit
$
66.2
$
91.1
$
(24.9
)
(27
)%
Adjustments:
Used vehicle inventory valuation
adjustment
$
10.0
$
—
Total adjustments
$
10.0
$
—
Adjusted:
Total adjusted gross profit
$
76.2
$
91.1
$
(14.9
)
(16
)%
NM = Not Meaningful
Non-GAAP Reconciliation - Powersports
Segment - SG&A Expenses
Three Months Ended June
30,
Better / (Worse)
2023
2022
Change
% Change
(In millions)
Reported:
Compensation
$
6.6
$
1.9
$
(4.7
)
NM
Advertising
0.4
—
(0.4
)
NM
Rent
—
—
—
NM
Other
2.2
0.4
(1.8
)
NM
Total SG&A expenses
$
9.2
$
2.3
$
(6.9
)
NM
Reported:
SG&A expenses as a % of gross
profit:
Compensation
51.3
%
110.8
%
NM
Advertising
2.9
%
2.3
%
NM
Rent
0.2
%
—
%
NM
Other
17.2
%
22.0
%
NM
Total SG&A expenses as a % of gross
profit
71.6
%
135.1
%
NM
Reported:
Total gross profit
$
12.8
$
1.7
$
11.1
NM
NM = Not Meaningful
Six Months Ended June
30,
Better / (Worse)
2023
2022
Change
% Change
(In millions)
Reported:
Compensation
$
11.8
$
2.2
$
(9.6
)
NM
Advertising
0.8
0.1
(0.7
)
NM
Rent
0.1
—
(0.1
)
NM
Other
4.3
0.5
(3.8
)
NM
Total SG&A expenses
$
17.0
$
2.8
$
(14.2
)
NM
Reported:
SG&A expenses as a % of gross
profit:
Compensation
52.4
%
80.0
%
NM
Advertising
3.5
%
2.2
%
NM
Rent
0.3
%
—
%
NM
Other
19.0
%
21.3
%
NM
Total SG&A expenses as a % of gross
profit
75.2
%
103.5
%
NM
Reported:
Total gross profit
$
22.6
$
2.7
$
19.9
NM
NM = Not Meaningful
Non-GAAP Reconciliation - Franchised
Dealerships Segment - Income (Loss) Before Taxes and Segment Income
(Loss)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
% Change
2023
2022
% Change
(In millions)
Reported:
Income (loss) before taxes
$
145.9
$
162.1
(10
)%
$
255.8
$
326.0
(22
)%
Add: Impairment charges
—
—
—
—
Segment income (loss)
$
145.9
$
162.1
(10
)%
$
255.8
$
326.0
(22
)%
Adjustments:
Acquisition and disposition-related (gain)
loss
$
(20.9
)
$
—
$
(20.9
)
$
—
Hail and storm damage charges
1.9
—
1.9
—
Long-term compensation charges
—
4.4
—
4.4
Total pre-tax adjustments
$
(19.0
)
$
4.4
$
(19.0
)
$
4.4
Adjusted:
Segment income (loss)
$
126.9
$
166.5
(24
)%
$
236.8
$
330.4
(28
)%
Non-GAAP Reconciliation - EchoPark
Segment - Income (Loss) Before Taxes and Segment Income
(Loss)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
% Change
2023
2022
% Change
(In millions)
Reported:
Income (loss) before taxes
$
(115.4
)
$
(34.2
)
(237
)%
$
(162.3
)
$
(69.6
)
(133
)%
Add: Impairment charges
62.6
—
62.6
—
Segment income (loss)
$
(52.8
)
$
(34.2
)
(54
)%
$
(99.7
)
$
(69.6
)
(43
)%
Adjustments:
Acquisition and disposition-related (gain)
loss
$
0.2
$
—
$
0.2
$
—
Lease exit charges
0.4
—
0.4
—
Severance and long-term compensation
charges
2.2
—
4.2
—
Used vehicle inventory valuation
adjustment
10.0
—
10.0
—
Total pre-tax adjustments
$
12.8
$
—
$
14.8
$
—
Adjusted:
Segment income (loss)
$
(40.0
)
$
(34.2
)
(17
)%
$
(84.9
)
$
(69.6
)
(22
)%
Non-GAAP Reconciliation - Powersports
Segment - Income (Loss) Before Taxes and Segment Income
(Loss)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
% Change
2023
2022
% Change
(In millions)
Reported:
Income (loss) before taxes
$
2.0
$
(0.7
)
NM
$
2.6
$
(0.3
)
NM
Add: Impairment charges
—
—
—
—
Segment income (loss)
$
2.0
$
(0.7
)
NM
2.6
(0.3
)
NM
NM = Not Meaningful
Non-GAAP Reconciliation - Consolidated
- Net Income (Loss) and Diluted Earnings (Loss) Per Share
Three Months Ended June 30,
2023
Three Months Ended June 30,
2022
Weighted-
Average
Shares
Amount
Per
Share
Amount
Weighted-
Average
Shares
Amount
Per
Share
Amount
(In millions, except per share
amounts)
Reported net income (loss), diluted
shares, and diluted earnings (loss) per share
36.0
$
23.4
$
0.65
40.5
$
94.8
$
2.34
Adjustments:
Acquisition and disposition-related gain
(loss)
$
(20.7
)
$
—
Hail and storm damage charges
1.9
—
Impairment charges
62.6
—
Lease exit charges
0.4
—
Severance and long-term compensation
charges
2.2
4.4
Used vehicle inventory valuation
adjustment
10.0
—
Total pre-tax items of interest
$
56.4
$
4.4
Tax effect of above items
(13.8
)
—
Adjusted net income (loss), diluted
shares, and diluted earnings (loss) per share
36.0
$
66.0
$
1.83
40.5
$
99.2
$
2.45
Six Months Ended June 30,
2023
Six Months Ended June 30,
2022
Weighted-
Average
Shares
Net Income (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
36.5
$
71.1
$
1.95
41.2
$
192.1
$
4.67
Adjustments:
Acquisition and disposition-related gain
(loss)
$
(20.7
)
$
—
Hail and storm damage charges
1.9
—
Impairment charges
62.6
—
Lease exit charges
0.4
—
Severance and long-term compensation
charges
4.2
4.4
Used vehicle inventory valuation
adjustment
10.0
—
Total pre-tax items of interest
$
58.4
$
4.4
Tax effect of above items
(14.3
)
—
Adjusted net income (loss), diluted
shares, and diluted earnings (loss) per share
36.5
$
115.2
$
3.16
41.2
$
196.5
$
4.77
Non-GAAP Reconciliation - Adjusted
EBITDA
Three Months Ended June 30,
2023
Three Months Ended June 30,
2022
Franchised Dealerships
Segment
EchoPark Segment
Powersports Segment
Total
Franchised Dealerships
Segment
EchoPark Segment
Powersports Segment
Total
(In millions)
Net income (loss)
$
23.4
$
94.8
Provision for income taxes
9.1
32.4
Income (loss) before taxes
$
145.9
$
(115.4
)
$
2.0
$
32.5
$
162.1
$
(34.2
)
$
(0.7
)
$
127.2
Non-floor plan interest (1)
25.8
0.8
0.6
27.2
19.1
1.0
—
20.1
Depreciation and amortization (2)
29.5
7.4
0.8
37.7
26.4
5.9
0.1
32.4
Stock-based compensation expense
5.6
—
—
5.6
4.2
—
—
4.2
Loss (gain) on exit of leased
dealerships
—
0.4
—
0.4
—
—
—
—
Impairment charges
—
62.6
—
62.6
—
—
—
—
Severance and long-term compensation
charges
—
2.2
—
2.2
4.4
—
—
4.4
Acquisition and disposition related (gain)
loss
(20.9
)
0.2
—
(20.7
)
0.1
—
—
0.1
Hail and storm damage charges
1.9
—
—
1.9
—
—
—
—
Used vehicle inventory valuation
adjustment
—
10.0
—
10.0
—
—
—
—
Adjusted EBITDA
$
187.8
$
(31.8
)
$
3.4
$
159.4
$
216.3
$
(27.3
)
$
(0.6
)
$
188.4
Six Months Ended June 30,
2023
Six Months Ended June 30,
2022
Franchised Dealerships
Segment
EchoPark Segment
Powersports Segment
Total
Franchised Dealerships
Segment
EchoPark Segment
Powersports Segment
Total
(In millions)
Net income (loss)
$
71.1
$
192.1
Provision for income taxes
25.0
64.0
Income (loss) before taxes
$
255.8
$
(162.3
)
$
2.6
$
96.1
$
326.0
$
(69.6
)
$
(0.3
)
$
256.1
Non-floor plan interest (1)
51.2
1.7
1.2
54.1
38.1
1.7
—
39.8
Depreciation & amortization (2)
57.7
14.4
1.5
73.6
52.3
11.0
0.2
63.5
Stock-based compensation expense
10.6
—
—
10.6
8.6
—
—
8.6
Loss (gain) on exit of leased
dealerships
—
0.4
—
0.4
—
—
—
—
Impairment charges
—
62.6
—
62.6
—
—
—
—
Severance and long-term compensation
charges
—
4.2
—
4.2
4.4
—
—
4.4
Acquisition and disposition related (gain)
loss
(20.9
)
0.2
—
(20.7
)
(1.0
)
—
—
(1.0
)
Hail and storm damage charges
1.9
—
—
1.9
—
—
—
—
Used vehicle inventory valuation
adjustment
—
10.0
—
10.0
—
—
—
—
Adjusted EBITDA
$
356.3
$
(68.8
)
$
5.3
$
292.8
$
428.4
$
(56.9
)
$
(0.1
)
$
371.4
(1)
Includes interest expense, other, net in
the accompanying consolidated statements of operations, net of any
amortization of debt issuance costs or net debt discount/premium
included in (2) below.
(2)
Includes the following line items from the
accompanying consolidated statements of cash flows: depreciation
and amortization of property and equipment; debt issuance cost
amortization; and debt discount amortization, net of premium
amortization.
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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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