SAH 8-K
Sonic Automotive Inc (SAH)
8-K
2025-02-12
For: 2025-02-12
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Added on
April 08, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________
FORM 8-K
____________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 12, 2025
____________________________________
(Exact name of registrant as specified in its charter)
____________________________________
(State or other jurisdiction
of incorporation)
(Commission File Number) | (IRS Employer Identification No.) | |||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||||||||
Registrant’s telephone number, including area code: (704) 566-2400
Not Applicable
(Former name or former address, if changed since last report.)
____________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On February 12, 2025, Sonic Automotive, Inc. (the “Company”) issued a press release announcing its financial results for its fourth fiscal quarter and fiscal year ended December 31, 2024 (the “Earnings Press Release”). A copy of the Earnings Press Release is attached hereto as Exhibit 99.1 and a copy of the earnings call presentation materials is attached hereto as Exhibit 99.2.
Item 7.01. Regulation FD Disclosure.
On February 12, 2025, in the Earnings Press Release, the Company announced the approval of a quarterly cash dividend.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. | Description | |||||||
| 99.1 | ||||||||
| 99.2 | ||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
The information in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 attached hereto, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SONIC AUTOMOTIVE, INC. | ||||||||
| February 12, 2025 | By: | /s/ STEPHEN K. COSS | ||||||
| Stephen K. Coss | ||||||||
| Senior Vice President and General Counsel | ||||||||
Exhibit 99.1
Sonic Automotive Reports Fourth Quarter and Full Year Financial Results
Fourth Quarter Results Include All-Time Record Quarterly Revenues of $3.9 Billion
All-Time Record Annual EchoPark Segment Adjusted EBITDA*
The Company Exceeded Its Technician Hiring Goal, Increasing Headcount By 335 Technicians In 2024
CHARLOTTE, N.C. – February 12, 2025 – 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, 2024.
Fourth Quarter 2024 Financial Summary
•All-time record quarterly total revenues of $3.9 billion, up 9% year-over-year; total gross profit of $574.0 million, up 6% year-over-year
•Reported net income of $58.6 million, up 51% year-over-year ($1.67 earnings per diluted share, up 50% year-over-year)
◦Reported net income for the fourth quarter of 2024 includes the effect of a $10.0 million pre-tax gain from cyber insurance proceeds and a $2.7 million net pre-tax acquisition and disposition related gain, offset partially by a $3.2 million pre-tax storm damage charge, a $1.5 million pre-tax charge related to non-cash impairment charges, and a $0.5 million pre-tax long-term compensation charge (collectively, these items are partially offset by a $2.0 million tax expense on the above net benefit). Reported net income for the fourth quarter of 2023 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 the charge) 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 $53.1 million, down 7% year-over-year ($1.51 adjusted earnings per diluted share*, down 7% year-over-year)
•Total reported selling, general and administrative (“SG&A”) expenses as a percentage of gross profit of 69.6% (67.3% on a Franchised Dealerships Segment basis, 87.0% on an EchoPark Segment basis, and 113.2% on a Powersports Segment basis)
◦Total adjusted SG&A expenses as a percentage of gross profit* of 71.2% (69.3% on a Franchised Dealerships Segment basis, 85.5% on an EchoPark Segment basis, and 106.6% on a Powersports Segment basis)
•All-time record quarterly Franchised Dealerships Segment revenues of $3.4 billion, up 12% year-over-year; Franchised Dealerships Segment gross profit of $517.4 million, up 5% year-over-year
•EchoPark Segment revenues of $506.2 million, down 9% year-over-year; fourth quarter record EchoPark Segment gross profit of $49.0 million, up 14% year-over-year; EchoPark Segment retail used vehicle unit sales volume of 16,674 units, down 5% year-over-year
•Reported EchoPark Segment loss of $2.6 million, an 84% improvement year-over-year, and adjusted EchoPark Segment loss* of $1.8 million, an 89% improvement year-over-year
•EchoPark Segment adjusted EBITDA* of $4.2 million, up 146% year-over-year, as compared to a $9.1 million adjusted EBITDA* loss in the prior year period
◦Excluding the impact from closed stores, EchoPark Segment adjusted EBITDA* was $4.9 million, a 178% improvement from an adjusted EBITDA* loss of $6.3 million in the prior year period
•During the fourth quarter, Sonic acquired the remaining 50% equity in a joint venture in North Point Volvo, in addition to acquiring Audi New Orleans and Motorcycles of Charlotte & Greensboro, which collectively are expected to add approximately $145.0 million in annualized revenues
•Subsequent to December 31, 2024, Sonic’s Board of Directors approved a quarterly cash dividend of $0.35 per share, payable on April 15, 2025 to all stockholders of record on March 14, 2025
* Please refer to the discussion and reconciliation of Non-GAAP Financial Measures below.
Full Year 2024 Financial Summary
•Total revenues of $14.2 billion, down 1% year-over-year; gross profit of $2.2 billion, down 2% year-over-year
•Reported full year net income of $216.0 million, up 21% year-over-year ($6.18 earnings per diluted share, up 24% year-over-year)
◦Reported net income for full year 2024 includes the effect of $13.4 million in excess compensation expense paid to our teammates related to the CDK outage, an $8.3 million pre-tax storm damage charge, $5.5 million in pre-tax severance and long-term compensation charges, a $3.9 million pre-tax charge related to non-cash impairment charges, and a $2.1 million pre-tax charge related to closed store accrued expenses, offset by a $10.0 million pre-tax gain from cyber insurance proceeds, a $5.6 million net pre-tax acquisition and disposition related gain, and a $3.0 million pre-tax gain on the exit of leased dealerships (collectively, these items are partially offset by a $3.8 million tax benefit on the above net charges), and a one-time income tax benefit of $31.0 million associated with an out of period adjustment correcting an error recorded in connection with the impairment of franchise assets in a prior period. Reported net income for full year 2023 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 $9.4 million net pre-tax benefit to SG&A expenses (collectively, partially offset by a $19.9 million tax benefit on the above net charges) and a one-time tax charge of $5.8 million related to certain non-deductible tax items.
◦Excluding these items, adjusted net income* was $195.8 million, down 20% year-over year ($5.60 adjusted earnings per diluted share*, down 18% year-over-year)
•Total reported selling, general and administrative (“SG&A”) expenses as a percentage of gross profit of 71.9% (70.9% on a Franchised Dealerships Segment basis, 79.7% on an EchoPark Segment basis, and 82.0% on a Powersports Segment basis)
•Total adjusted SG&A expenses as a percentage of gross profit* of 71.5% (70.4% on a Franchised Dealerships Segment basis, 79.6% on an EchoPark Segment basis, and 80.9% on a Powersports Segment basis)
•All-time record annual Franchised Dealerships Segment revenues of $11.9 billion, up 1% year-over-year; Franchised Dealerships Segment gross profit of $1.9 billion, down 5% year-over-year
•EchoPark Segment revenues of $2.1 billion, down 13% year-over-year; EchoPark Segment gross profit of $207.9 million, up 28% year-over-year; EchoPark Segment retail used vehicle unit sales volume of 69,053 units, down 6% year-over-year
•Reported EchoPark Segment income of $3.5 million, up 103% year-over-year from a loss of $132.5 million in the prior year, and adjusted EchoPark Segment income* of $3.7 million, up 103% year-over year from a loss of $112.8 million in the prior year
•EchoPark Segment adjusted EBITDA*of $27.6 million, up 133% year-over-year from a loss of $83.0 million in the prior year
◦Excluding closed stores, EchoPark Segment adjusted EBITDA* was $32.5 million, a 166% improvement from an adjusted EBITDA* loss of $49.4 million in the prior year
•During 2024, Sonic repurchased approximately 0.6 million shares of its Class A Common Stock for an aggregate purchase price of approximately $34.4 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, “I'm very proud of our team's performance in the fourth quarter, building positive momentum heading into 2025. Our franchised dealerships segment achieved all-time record quarterly revenues, outperforming the industry in both new and used retail unit sales volume growth and generating all-time quarterly record parts and service revenues. In the fourth quarter, we accelerated our technician hiring and retention initiative, exceeding our goal of increasing technician headcount by 300 in 2024, with a final net increase of 335 technicians. This strong finish to 2024 positions us well for continued growth in 2025, and our entire team remains focused on executing our strategy and continuing to grow our business, creating long-term value for our stakeholders.”
Jeff Dyke, President of Sonic Automotive, commented, “2024 was a strong year of execution across all of our operating segments, despite affordability challenges for our guests, operational disruptions from the CDK outage, manufacturer stop-sale orders on certain makes and models, and continued normalization of new vehicle margins. Our EchoPark team did an excellent job executing our strategy to return to profitability, achieving all-time record annual adjusted EBITDA* of $27.6 million - an incredible turnaround from a loss of $83.0 million in 2023. As we look ahead to 2025, our focus remains on delivering an outstanding experience for our guests and teammates, continuing to grow our EchoPark volume and profitability, gaining market share in our franchised dealerships and powersports segments, and optimizing our expense structure to drive sustained success.”
Heath Byrd, Chief Financial Officer of Sonic Automotive, added, “As we close out 2024, Sonic is in a strong financial position to continue to execute our long-term strategic plan. As of December 31, 2024, we had approximately $384 million in cash and floor plan deposits on hand, with total liquidity of approximately $862 million, before considering unencumbered real estate. In 2025, we anticipate numerous opportunities to deploy our capital to grow our revenue base and enhance shareholder returns.”
Fourth Quarter 2024 Segment Highlights
The financial measures discussed below are results for the fourth quarter of 2024 with comparisons made to the fourth quarter of 2023, unless otherwise noted.
•Franchised Dealerships Segment operating results include:
•Same store revenues up 12%; same store gross profit up 5%
•Same store retail new vehicle unit sales volume up 13%; same store retail new vehicle gross profit per unit down 25%, to $3,241
•Same store retail used vehicle unit sales volume up 5%; same store retail used vehicle gross profit per unit down 3%, to $1,396
•Same store parts, service and collision repair (“Fixed Operations”) gross profit up 12%; same store customer pay gross profit up 5%; same store warranty gross profit up 45%; same store Fixed Operations gross margin up 80 basis points, to 50.7%
•Same store finance and insurance ("F&I") gross profit up 14%; same store F&I gross profit per retail unit of $2,427, up 4%
•On a trailing quarter cost of sales basis, the Franchised Dealerships Segment had 46 days’ supply of new vehicle inventory (including in-transit) and 31 days’ supply of used vehicle inventory
•EchoPark Segment operating results include:
•Revenues of $506.2 million, down 9% year-over-year; gross profit of $49.0 million, up 14% year-over-year
◦On a same market basis (which excludes closed stores), revenues were flat and gross profit was up 29%
•Retail used vehicle unit sales volume of 16,674, down 5% year-over-year
◦On a same market basis (which excludes closed stores), retail used vehicle unit sales volume was up 4%
•Reported segment loss of $2.6 million, adjusted segment loss* of $1.8 million, and adjusted EBITDA* of $4.2 million
◦Closed stores within the segment negatively impacted reported segment loss by $0.8 million, adjusted segment loss by $0.8 million and segment adjusted EBITDA* by $0.7 million
•On a trailing quarter cost of sales basis, the EchoPark Segment had 38 days’ supply of used vehicle inventory
•Powersports Segment operating results include:
•Revenues of $30.6 million, up 13%; gross profit of $7.5 million, up 7%; gross margin of 24.6%
•Reported segment loss of $3.4 million, adjusted segment loss* of $2.9 million, and adjusted EBITDA loss* of $1.0 million
* Please refer to the discussion and reconciliation of Non-GAAP Financial Measures below.
Full Year 2024 Segment Highlights
The financial measures discussed below are results for the full year 2024 with comparisons made to the full year 2023, unless otherwise noted.
•Franchised Dealerships Segment operating results include:
•Same store revenues up 2%; same store gross profit down 4%
•Same store retail new vehicle unit sales volume up 5%; same store retail new vehicle gross profit per unit down 30%, to $3,387
•Same store retail used vehicle unit sales volume up 2%; same store retail used vehicle gross profit per unit down 9%, to $1,477
•Same store Fixed Operations gross profit up 7%; same store customer pay gross profit up 4%; same store warranty gross profit up 25%; same store Fixed Operations gross margin up 70 basis points, to 50.4%
•Same store F&I gross profit up 2% year-over-year; same store F&I gross profit per retail unit of $2,377, down 1% year-over-year
•EchoPark Segment operating results include:
•Revenues of $2.1 billion, down 13% year-over-year; gross profit of $207.9 million, up 28% year-over-year
◦On a same market basis (which excludes closed stores), revenues were up 4% and gross profit was up 48%
•Retail used vehicle unit sales volume of 69,053, down 6% year-over-year
◦On a same market basis (which excludes closed stores), retail used vehicle unit sales volume was up 10%
•Reported segment income of $3.5 million, adjusted segment income* of $3.7 million, and adjusted EBITDA* of $27.6 million
◦Closed stores within the segment negatively impacted segment income by $6.8 million, adjusted segment income* by $4.5 million and segment adjusted EBITDA* by $4.9 million
•Powersports Segment operating results include:
•Revenues of $157.3 million, down 4%; gross profit of $43.7 million, down 13%; gross margin of 27.8%
•Reported segment loss of $1.1 million, adjusted segment loss* of $0.6 million, and adjusted EBITDA* of $6.3 million
* 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 $0.35 per share, payable on April 15, 2025 to all stockholders of record on March 14, 2025.
Fourth 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 Fourth 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 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 unit sales volume, anticipated future EchoPark profitability, anticipated future Franchised Dealerships Segment market share, and anticipated future Powersports Segment market share. 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, segment income (loss), adjusted segment income (loss), adjusted EBITDA, and adjusted EBITDA loss. 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.
Company Contacts
Investor Inquiries:
Heath Byrd, Executive Vice President and Chief Financial Officer
Danny Wieland, Vice President, Investor Relations & Financial Reporting
Press Inquiries:
Sonic Automotive Media Relations
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) | ||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||
| (In millions, except per share amounts) | |||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | $ | 1,932.3 | $ | 1,680.2 | 15 | % | $ | 6,507.5 | $ | 6,304.6 | 3 | % | |||||||||||||||||||||||
| Fleet new vehicles | 27.3 | 21.8 | 25 | % | 95.3 | 92.2 | 3 | % | |||||||||||||||||||||||||||
| Total new vehicles | 1,959.6 | 1,702.0 | 15 | % | 6,602.8 | 6,396.8 | 3 | % | |||||||||||||||||||||||||||
| Used vehicles | 1,197.6 | 1,222.4 | (2) | % | 4,780.1 | 5,213.6 | (8) | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 71.3 | 62.6 | 14 | % | 287.1 | 318.8 | (10) | % | |||||||||||||||||||||||||||
| Total vehicles | 3,228.5 | 2,987.0 | 8 | % | 11,670.0 | 11,929.2 | (2) | % | |||||||||||||||||||||||||||
| Parts, service and collision repair | 476.7 | 431.9 | 10 | % | 1,846.5 | 1,759.5 | 5 | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 190.6 | 166.0 | 15 | % | 707.8 | 683.7 | 4 | % | |||||||||||||||||||||||||||
| Total revenues | 3,895.8 | 3,584.9 | 9 | % | 14,224.3 | 14,372.4 | (1) | % | |||||||||||||||||||||||||||
| Cost of sales: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | (1,825.7) | (1,555.7) | (17) | % | (6,119.1) | (5,769.2) | (6) | % | |||||||||||||||||||||||||||
| Fleet new vehicles | (26.6) | (20.9) | (27) | % | (92.3) | (88.2) | (5) | % | |||||||||||||||||||||||||||
| Total new vehicles | (1,852.3) | (1,576.6) | (17) | % | (6,211.4) | (5,857.4) | (6) | % | |||||||||||||||||||||||||||
| Used vehicles | (1,159.8) | (1,184.9) | 2 | % | (4,609.4) | (5,062.4) | 9 | % | |||||||||||||||||||||||||||
| Wholesale vehicles | (74.6) | (65.8) | (13) | % | (293.1) | (321.4) | 9 | % | |||||||||||||||||||||||||||
| Total vehicles | (3,086.7) | (2,827.3) | (9) | % | (11,113.9) | (11,241.2) | 1 | % | |||||||||||||||||||||||||||
| Parts, service and collision repair | (235.1) | (216.5) | (9) | % | (917.6) | (885.5) | (4) | % | |||||||||||||||||||||||||||
| Total cost of sales | (3,321.8) | (3,043.8) | (9) | % | (12,031.5) | (12,126.7) | 1 | % | |||||||||||||||||||||||||||
| Gross profit | 574.0 | 541.1 | 6 | % | 2,192.8 | 2,245.7 | (2) | % | |||||||||||||||||||||||||||
| Selling, general and administrative expenses | (399.6) | (386.3) | (3) | % | (1,577.0) | (1,600.5) | 1 | % | |||||||||||||||||||||||||||
| Impairment charges | (1.5) | (16.7) | NM | (3.9) | (79.3) | NM | |||||||||||||||||||||||||||||
| Depreciation and amortization | (39.4) | (36.6) | (8) | % | (150.4) | (142.3) | (6) | % | |||||||||||||||||||||||||||
| Operating income (loss) | 133.5 | 101.5 | 32 | % | 461.5 | 423.6 | 9 | % | |||||||||||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||||||||||||||
| Interest expense, floor plan | (21.4) | (18.4) | (16) | % | (86.9) | (67.2) | (29) | % | |||||||||||||||||||||||||||
| Interest expense, other, net | (29.9) | (28.3) | (6) | % | (118.0) | (114.6) | (3) | % | |||||||||||||||||||||||||||
| Other income (expense), net | (0.1) | (0.1) | NM | (0.5) | 0.1 | NM | |||||||||||||||||||||||||||||
| Total other income (expense) | (51.4) | (46.8) | (10) | % | (205.4) | (181.7) | (13) | % | |||||||||||||||||||||||||||
| Income (loss) before taxes | 82.1 | 54.7 | 50 | % | 256.1 | 241.9 | 6 | % | |||||||||||||||||||||||||||
| Provision for income taxes - benefit (expense) | (23.5) | (16.0) | (47) | % | (40.1) | (63.7) | 37 | % | |||||||||||||||||||||||||||
| Net income (loss) | $ | 58.6 | $ | 38.7 | 51 | % | $ | 216.0 | $ | 178.2 | 21 | % | |||||||||||||||||||||||
| Basic earnings (loss) per common share | $ | 1.72 | $ | 1.14 | 51 | % | $ | 6.34 | $ | 5.09 | 25 | % | |||||||||||||||||||||||
| Basic weighted-average common shares outstanding | 34.1 | 33.9 | (1) | % | 34.1 | 35.0 | 3 | % | |||||||||||||||||||||||||||
| Diluted earnings (loss) per common share | $ | 1.67 | $ | 1.11 | 50 | % | $ | 6.18 | $ | 4.97 | 24 | % | |||||||||||||||||||||||
| Diluted weighted-average common shares outstanding | 35.2 | 34.8 | (1) | % | 35.0 | 35.9 | 3 | % | |||||||||||||||||||||||||||
| Dividends declared per common share | $ | 0.35 | $ | 0.30 | 17 | % | $ | 1.25 | $ | 1.16 | 8 | % | |||||||||||||||||||||||
NM = Not Meaningful
Franchised Dealerships Segment - Reported
| Three Months Ended December 31, | Better / (Worse) | Twelve Months Ended December 31, | Better / (Worse) | ||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||
| (In millions, except unit and per unit data) | |||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | $ | 1,914.8 | $ | 1,664.1 | 15 | % | $ | 6,425.5 | $ | 6,215.0 | 3 | % | |||||||||||||||||||||||
| Fleet new vehicles | 27.2 | 21.8 | 25 | % | 95.3 | 92.2 | 3 | % | |||||||||||||||||||||||||||
| Total new vehicles | 1,942.0 | 1,685.9 | 15 | % | 6,520.8 | 6,307.2 | 3 | % | |||||||||||||||||||||||||||
| Used vehicles | 757.0 | 727.5 | 4 | % | 2,919.8 | 3,050.3 | (4) | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 49.8 | 39.3 | 27 | % | 188.9 | 204.5 | (8) | % | |||||||||||||||||||||||||||
| Total vehicles | 2,748.8 | 2,452.7 | 12 | % | 9,629.5 | 9,562.0 | 1 | % | |||||||||||||||||||||||||||
| Parts, service and collision repair | 469.7 | 425.2 | 10 | % | 1,802.9 | 1,714.2 | 5 | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 140.5 | 123.2 | 14 | % | 506.8 | 498.6 | 2 | % | |||||||||||||||||||||||||||
| Total revenues | 3,359.0 | 3,001.1 | 12 | % | 11,939.2 | 11,774.8 | 1 | % | |||||||||||||||||||||||||||
| Gross Profit: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | 104.4 | 122.2 | (15) | % | 376.9 | 518.7 | (27) | % | |||||||||||||||||||||||||||
| Fleet new vehicles | 0.7 | 0.9 | (22) | % | 3.0 | 4.0 | (25) | % | |||||||||||||||||||||||||||
| Total new vehicles | 105.1 | 123.1 | (15) | % | 379.9 | 522.7 | (27) | % | |||||||||||||||||||||||||||
| Used vehicles | 36.0 | 35.1 | 3 | % | 150.2 | 162.9 | (8) | % | |||||||||||||||||||||||||||
| Wholesale vehicles | (2.7) | (2.7) | — | % | (4.6) | (3.3) | (39) | % | |||||||||||||||||||||||||||
| Total vehicles | 138.4 | 155.5 | (11) | % | 525.5 | 682.3 | (23) | % | |||||||||||||||||||||||||||
| Parts, service and collision repair | 238.5 | 212.6 | 12 | % | 908.9 | 852.7 | 7 | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 140.5 | 123.2 | 14 | % | 506.8 | 498.6 | 2 | % | |||||||||||||||||||||||||||
| Total gross profit | 517.4 | 491.3 | 5 | % | 1,941.2 | 2,033.6 | (5) | % | |||||||||||||||||||||||||||
| Selling, general and administrative expenses | (348.5) | (329.1) | (6) | % | (1,375.4) | (1,314.6) | (5) | % | |||||||||||||||||||||||||||
| Impairment charges | (0.2) | (1.0) | NM | (1.2) | (1.0) | NM | |||||||||||||||||||||||||||||
| Depreciation and amortization | (32.7) | (29.4) | (11) | % | (124.4) | (112.3) | (11) | % | |||||||||||||||||||||||||||
| Operating income (loss) | 136.0 | 131.8 | 3 | % | 440.2 | 605.7 | (27) | % | |||||||||||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||||||||||||||
| Interest expense, floor plan | (18.0) | (14.6) | (23) | % | (70.6) | (49.2) | (43) | % | |||||||||||||||||||||||||||
| Interest expense, other, net | (28.6) | (27.5) | (4) | % | (112.7) | (109.7) | (3) | % | |||||||||||||||||||||||||||
| Other income (expense), net | — | 0.1 | NM | (0.5) | 0.2 | NM | |||||||||||||||||||||||||||||
| Total other income (expense) | (46.6) | (42.0) | (11) | % | (183.8) | (158.7) | (16) | % | |||||||||||||||||||||||||||
| Income (loss) before taxes | 89.4 | 89.8 | — | % | 256.4 | 447.0 | (43) | % | |||||||||||||||||||||||||||
| Add: Impairment charges | 0.2 | 1.0 | NM | 1.2 | 1.0 | NM | |||||||||||||||||||||||||||||
| Segment income (loss) | $ | 89.6 | $ | 90.8 | (1) | % | $ | 257.6 | $ | 448.0 | (43) | % | |||||||||||||||||||||||
| Unit Sales Volume: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | 32,250 | 28,491 | 13 | % | 111,450 | 107,257 | 4 | % | |||||||||||||||||||||||||||
| Fleet new vehicles | 506 | 500 | 1 | % | 1,805 | 2,000 | (10) | % | |||||||||||||||||||||||||||
| Total new vehicles | 32,756 | 28,991 | 13 | % | 113,255 | 109,257 | 4 | % | |||||||||||||||||||||||||||
| Used vehicles | 25,702 | 24,365 | 5 | % | 101,976 | 100,210 | 2 | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 5,692 | 4,440 | 28 | % | 21,018 | 20,602 | 2 | % | |||||||||||||||||||||||||||
| Retail new & used vehicles | 57,952 | 52,856 | 10 | % | 213,426 | 207,467 | 3 | % | |||||||||||||||||||||||||||
| Used:New Ratio | 0.80 | 0.86 | (7) | % | 0.91 | 0.93 | (2) | % | |||||||||||||||||||||||||||
| Gross Profit Per Unit: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | $ | 3,238 | $ | 4,289 | (25) | % | $ | 3,382 | $ | 4,836 | (30) | % | |||||||||||||||||||||||
| Fleet new vehicles | $ | 1,363 | $ | 1,780 | (23) | % | $ | 1,636 | $ | 1,989 | (18) | % | |||||||||||||||||||||||
| New vehicles | $ | 3,209 | $ | 4,246 | (24) | % | $ | 3,354 | $ | 4,784 | (30) | % | |||||||||||||||||||||||
| Used vehicles | $ | 1,401 | $ | 1,440 | (3) | % | $ | 1,473 | $ | 1,626 | (9) | % | |||||||||||||||||||||||
| Finance, insurance and other, net | $ | 2,424 | $ | 2,330 | 4 | % | $ | 2,374 | $ | 2,403 | (1) | % | |||||||||||||||||||||||
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 December 31, | Better / (Worse) | Twelve Months Ended December 31, | Better / (Worse) | ||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||
| (In millions, except unit and per unit data) | |||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | $ | 1,907.0 | $ | 1,661.0 | 15 | % | $ | 6,409.0 | $ | 6,163.8 | 4 | % | |||||||||||||||||||||||
| Fleet new vehicles | 27.2 | 21.8 | 25 | % | 95.3 | 91.3 | 4 | % | |||||||||||||||||||||||||||
| Total new vehicles | 1,934.2 | 1,682.8 | 15 | % | 6,504.3 | 6,255.1 | 4 | % | |||||||||||||||||||||||||||
| Used vehicles | 750.6 | 725.9 | 3 | % | 2,905.6 | 3,021.3 | (4) | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 49.7 | 39.0 | 27 | % | 188.2 | 202.1 | (7) | % | |||||||||||||||||||||||||||
| Total vehicles | 2,734.5 | 2,447.7 | 12 | % | 9,598.0 | 9,478.5 | 1 | % | |||||||||||||||||||||||||||
| Parts, service and collision repair | 466.9 | 424.0 | 10 | % | 1,796.6 | 1,700.3 | 6 | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 139.8 | 123.0 | 14 | % | 505.3 | 494.8 | 2 | % | |||||||||||||||||||||||||||
| Total revenues | 3,341.2 | 2,994.7 | 12 | % | 11,899.9 | 11,673.6 | 2 | % | |||||||||||||||||||||||||||
| Gross Profit: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | 104.1 | 122.0 | (15) | % | 376.4 | 514.9 | (27) | % | |||||||||||||||||||||||||||
| Fleet new vehicles | 0.7 | 0.9 | (22) | % | 3.0 | 4.0 | (25) | % | |||||||||||||||||||||||||||
| Total new vehicles | 104.8 | 122.9 | (15) | % | 379.3 | 518.9 | (27) | % | |||||||||||||||||||||||||||
| Used vehicles | 35.6 | 35.0 | 2 | % | 149.9 | 161.6 | (7) | % | |||||||||||||||||||||||||||
| Wholesale vehicles | (2.7) | (2.6) | (4) | % | (4.3) | (2.3) | (87) | % | |||||||||||||||||||||||||||
| Total vehicles | 137.7 | 155.3 | (11) | % | 524.9 | 678.2 | (23) | % | |||||||||||||||||||||||||||
| Parts, service and collision repair | 236.9 | 211.6 | 12 | % | 904.6 | 844.5 | 7 | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 139.8 | 123.0 | 14 | % | 505.3 | 494.8 | 2 | % | |||||||||||||||||||||||||||
| Total gross profit | $ | 514.4 | $ | 489.9 | 5 | % | $ | 1,934.8 | $ | 2,017.5 | (4) | % | |||||||||||||||||||||||
| Unit Sales Volume: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | 32,122 | 28,408 | 13 | % | 111,138 | 106,047 | 5 | % | |||||||||||||||||||||||||||
| Fleet new vehicles | 506 | 500 | 1 | % | 1,805 | 1,971 | (8) | % | |||||||||||||||||||||||||||
| Total new vehicles | 32,628 | 28,908 | 13 | % | 112,943 | 108,018 | 5 | % | |||||||||||||||||||||||||||
| Used vehicles | 25,492 | 24,286 | 5 | % | 101,465 | 99,063 | 2 | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 5,665 | 4,411 | 28 | % | 20,907 | 20,324 | 3 | % | |||||||||||||||||||||||||||
| Retail new & used vehicles | 57,614 | 52,694 | 9 | % | 212,603 | 205,110 | 4 | % | |||||||||||||||||||||||||||
| Used:New Ratio | 0.79 | 0.85 | (7) | % | 0.91 | 0.93 | (2) | % | |||||||||||||||||||||||||||
| Gross Profit Per Unit: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | $ | 3,241 | $ | 4,294 | (25) | % | $ | 3,387 | $ | 4,855 | (30) | % | |||||||||||||||||||||||
| Fleet new vehicles | $ | 1,363 | $ | 1,780 | (23) | % | $ | 1,636 | $ | 2,042 | (20) | % | |||||||||||||||||||||||
| New vehicles | $ | 3,212 | $ | 4,250 | (24) | % | $ | 3,359 | $ | 4,804 | (30) | % | |||||||||||||||||||||||
| Used vehicles | $ | 1,396 | $ | 1,440 | (3) | % | $ | 1,477 | $ | 1,631 | (9) | % | |||||||||||||||||||||||
| Finance, insurance and other, net | $ | 2,427 | $ | 2,334 | 4 | % | $ | 2,377 | $ | 2,413 | (1) | % | |||||||||||||||||||||||
Note: All currently operating franchised dealership stores are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition.
EchoPark Segment - Reported
| Three Months Ended December 31, | Better / (Worse) | Twelve Months Ended December 31, | 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 | 436.0 | 492.5 | (11) | % | 1,838.0 | 2,143.8 | (14) | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 21.4 | 22.6 | (5) | % | 95.8 | 111.7 | (14) | % | |||||||||||||||||||||||||||
| Total vehicles | 457.4 | 515.1 | (11) | % | 1,933.8 | 2,256.5 | (14) | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 48.8 | 41.5 | 18 | % | 194.0 | 177.9 | 9 | % | |||||||||||||||||||||||||||
| Total revenues | 506.2 | 556.6 | (9) | % | 2,127.8 | 2,434.4 | (13) | % | |||||||||||||||||||||||||||
| Gross Profit: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | — | — | — | % | — | 0.1 | (100) | % | |||||||||||||||||||||||||||
| Used vehicles | 0.8 | 1.7 | (53) | % | 15.2 | (17.1) | 189 | % | |||||||||||||||||||||||||||
| Wholesale vehicles | (0.6) | (0.4) | (50) | % | (1.3) | 0.9 | (244) | % | |||||||||||||||||||||||||||
| Total vehicles | 0.2 | 1.3 | (85) | % | 13.9 | (16.1) | 186 | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 48.8 | 41.5 | 18 | % | 194.0 | 177.9 | 9 | % | |||||||||||||||||||||||||||
| Total gross profit | 49.0 | 42.8 | 14 | % | 207.9 | 161.8 | 28 | % | |||||||||||||||||||||||||||
| Selling, general and administrative expenses | (42.6) | (48.0) | 11 | % | (165.7) | (247.0) | 33 | % | |||||||||||||||||||||||||||
| Impairment charges | (1.3) | (15.7) | NM | (2.7) | (78.3) | NM | |||||||||||||||||||||||||||||
| Depreciation and amortization | (5.4) | (6.2) | 13 | % | (21.8) | (26.6) | 18 | % | |||||||||||||||||||||||||||
| Operating income (loss) | (0.3) | (27.1) | 99 | % | 17.7 | (190.1) | 109 | % | |||||||||||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||||||||||||||
| Interest expense, floor plan | (3.0) | (3.8) | 21 | % | (14.2) | (17.4) | 18 | % | |||||||||||||||||||||||||||
| Interest expense, other, net | (0.7) | (0.7) | — | % | (2.7) | (3.2) | 16 | % | |||||||||||||||||||||||||||
| Other income (expense), net | 0.1 | — | NM | — | (0.1) | NM | |||||||||||||||||||||||||||||
| Total other income (expense) | (3.6) | (4.5) | 20 | % | (16.9) | (20.7) | 18 | % | |||||||||||||||||||||||||||
| Income (loss) before taxes | (3.9) | (31.6) | 88 | % | 0.8 | (210.8) | 100 | % | |||||||||||||||||||||||||||
| Add: Impairment charges | 1.3 | 15.7 | NM | 2.7 | 78.3 | NM | |||||||||||||||||||||||||||||
| Segment income (loss) | $ | (2.6) | $ | (15.9) | 84 | % | $ | 3.5 | $ | (132.5) | 103 | % | |||||||||||||||||||||||
| Unit Sales Volume: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | — | — | — | % | — | 11 | (100) | % | |||||||||||||||||||||||||||
| Used vehicles | 16,674 | 17,562 | (5) | % | 69,053 | 73,676 | (6) | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 2,752 | 2,621 | 5 | % | 11,059 | 11,512 | (4) | % | |||||||||||||||||||||||||||
| Gross Profit Per Unit: | |||||||||||||||||||||||||||||||||||
| Total used vehicle and F&I | $ | 2,974 | $ | 2,461 | 21 | % | $ | 3,029 | $ | 2,183 | 39 | % | |||||||||||||||||||||||
NM = Not Meaningful
EchoPark Segment - Same Market
| Three Months Ended December 31, | Better / (Worse) | Twelve Months Ended December 31, | Better / (Worse) | ||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||
| (In millions, except unit and per unit data) | |||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Used vehicles | 436.0 | 447.7 | (3) | % | 1,828.3 | 1,788.6 | 2 | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 21.3 | 19.8 | 8 | % | 92.6 | 88.3 | 5 | % | |||||||||||||||||||||||||||
| Total vehicles | 457.4 | 467.5 | (2) | % | 1,920.9 | 1,876.9 | 2 | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 49.3 | 37.5 | 31 | % | 195.5 | 149.4 | 31 | % | |||||||||||||||||||||||||||
| Total revenues | 506.7 | 505.0 | — | % | 2,116.4 | 2,026.3 | 4 | % | |||||||||||||||||||||||||||
| Gross Profit: | |||||||||||||||||||||||||||||||||||
| Used vehicles | 0.8 | 1.0 | (20) | % | 15.6 | (8.3) | 288 | % | |||||||||||||||||||||||||||
| Wholesale vehicles | (0.6) | (0.3) | (100) | % | (0.6) | 1.6 | (138) | % | |||||||||||||||||||||||||||
| Total vehicles | 0.2 | 0.8 | (75) | % | 15.0 | (6.7) | 324 | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 49.3 | 37.5 | 31 | % | 195.5 | 149.4 | 31 | % | |||||||||||||||||||||||||||
| Total gross profit | $ | 49.5 | $ | 38.3 | 29 | % | $ | 210.5 | $ | 142.7 | 48 | % | |||||||||||||||||||||||
| Unit Sales Volume: | |||||||||||||||||||||||||||||||||||
| Used vehicles | 16,674 | 16,071 | 4 | % | 68,690 | 62,605 | 10 | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 2,752 | 2,363 | 16 | % | 10,850 | 9,375 | 16 | % | |||||||||||||||||||||||||||
| Gross Profit Per Unit: | |||||||||||||||||||||||||||||||||||
| Total used vehicle and F&I | $ | 3,004 | $ | 2,398 | 25 | % | $ | 3,074 | $ | 2,253 | 36 | % | |||||||||||||||||||||||
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) | ||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||
| (In millions, except unit and per unit data) | |||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | $ | 17.5 | $ | 16.1 | 9 | % | $ | 82.0 | $ | 88.6 | (7) | % | |||||||||||||||||||||||
| Used vehicles | 4.7 | 2.4 | 96 | % | 22.3 | 19.5 | 14 | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 0.1 | 0.7 | (86) | % | 2.3 | 2.6 | (12) | % | |||||||||||||||||||||||||||
| Total vehicles | 22.3 | 19.2 | 16 | % | 106.6 | 110.7 | (4) | % | |||||||||||||||||||||||||||
| Parts, service and collision repair | 7.0 | 6.7 | 4 | % | 43.6 | 45.3 | (4) | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 1.3 | 1.3 | — | % | 7.1 | 7.2 | (1) | % | |||||||||||||||||||||||||||
| Total revenues | 30.6 | 27.2 | 13 | % | 157.3 | 163.2 | (4) | % | |||||||||||||||||||||||||||
| Gross Profit: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | 2.2 | 2.3 | (4) | % | 11.5 | 16.6 | (31) | % | |||||||||||||||||||||||||||
| Used vehicles | 1.0 | 0.7 | 43 | % | 5.3 | 5.4 | (2) | % | |||||||||||||||||||||||||||
| Wholesale vehicles | (0.1) | (0.1) | — | % | (0.3) | (0.2) | (50) | % | |||||||||||||||||||||||||||
| Total vehicles | 3.1 | 2.9 | 7 | % | 16.5 | 21.8 | (24) | % | |||||||||||||||||||||||||||
| Parts, service and collision repair | 3.1 | 2.8 | 11 | % | 20.1 | 21.3 | (6) | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 1.3 | 1.3 | — | % | 7.1 | 7.2 | (1) | % | |||||||||||||||||||||||||||
| Total gross profit | 7.5 | 7.0 | 7 | % | 43.7 | 50.3 | (13) | % | |||||||||||||||||||||||||||
| Selling, general and administrative expenses | (8.5) | (9.2) | 8 | % | (35.9) | (38.9) | 8 | % | |||||||||||||||||||||||||||
| Depreciation and amortization | (1.2) | (1.0) | (20) | % | (4.2) | (3.4) | (24) | % | |||||||||||||||||||||||||||
| Operating income (loss) | (2.2) | (3.2) | 31 | % | 3.6 | 8.0 | (55) | % | |||||||||||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||||||||||||||
| Interest expense, floor plan | (0.5) | — | (100) | % | (2.1) | (0.6) | (250) | % | |||||||||||||||||||||||||||
| Interest expense, other, net | (0.7) | (0.2) | (250) | % | (2.6) | (1.7) | (53) | % | |||||||||||||||||||||||||||
| Other income (expense), net | — | (0.1) | NM | — | — | NM | |||||||||||||||||||||||||||||
| Total other income (expense) | (1.2) | (0.3) | (300) | % | (4.7) | (2.3) | (104) | % | |||||||||||||||||||||||||||
| Income (loss) before taxes | (3.4) | (3.5) | 3 | % | (1.1) | 5.7 | (119) | % | |||||||||||||||||||||||||||
| Add: impairment charges | — | — | NM | — | — | NM | |||||||||||||||||||||||||||||
| Segment income (loss) | $ | (3.4) | $ | (3.5) | 3 | % | $ | (1.1) | $ | 5.7 | (119) | % | |||||||||||||||||||||||
| Unit Sales Volume: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | 940 | 948 | (1) | % | 4,244 | 4,842 | (12) | % | |||||||||||||||||||||||||||
| Used vehicles | 520 | 289 | 80 | % | 2,228 | 2,261 | (1) | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 16 | 66 | (76) | % | 146 | 216 | (32) | % | |||||||||||||||||||||||||||
| Gross Profit Per Unit: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | $ | 2,338 | $ | 2,429 | (4) | % | $ | 2,713 | $ | 3,435 | (21) | % | |||||||||||||||||||||||
| Used vehicles | $ | 1,940 | $ | 2,307 | (16) | % | $ | 2,397 | $ | 2,394 | — | % | |||||||||||||||||||||||
| Finance, insurance and other, net | $ | 868 | $ | 1,066 | (19) | % | $ | 1,092 | $ | 1,017 | 7 | % | |||||||||||||||||||||||
NM = Not Meaningful
Powersports Segment - Same Store
| Three Months Ended December 31, | Better / (Worse) | Twelve Months Ended December 31, | Better / (Worse) | ||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||
| (In millions, except unit and per unit data) | |||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | $ | 16.4 | $ | 16.1 | 2 | % | $ | 80.3 | $ | 88.4 | (9) | % | |||||||||||||||||||||||
| Used vehicles | 4.3 | 2.4 | 79 | % | 21.3 | 19.0 | 12 | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 0.2 | 0.7 | (71) | % | 2.5 | 2.6 | (4) | % | |||||||||||||||||||||||||||
| Total vehicles | 20.9 | 19.2 | 9 | % | 104.1 | 110.0 | (5) | % | |||||||||||||||||||||||||||
| Parts, service and collision repair | 6.6 | 6.7 | (1) | % | 42.4 | 45.0 | (6) | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 1.2 | 1.3 | (8) | % | 7.0 | 7.2 | (3) | % | |||||||||||||||||||||||||||
| Total revenues | 28.7 | 27.2 | 6 | % | 153.5 | 162.2 | (5) | % | |||||||||||||||||||||||||||
| Gross Profit: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | 2.0 | 2.3 | (13) | % | 11.2 | 16.6 | (33) | % | |||||||||||||||||||||||||||
| Used vehicles | 1.0 | 0.7 | 43 | % | 5.1 | 5.3 | (4) | % | |||||||||||||||||||||||||||
| Wholesale vehicles | — | (0.2) | 100 | % | (0.2) | (0.3) | 33 | % | |||||||||||||||||||||||||||
| Total vehicles | 3.0 | 2.8 | 7 | % | 16.1 | 21.6 | (25) | % | |||||||||||||||||||||||||||
| Parts, service and collision repair | 2.9 | 2.8 | 4 | % | 19.5 | 21.2 | (8) | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 1.2 | 1.3 | (8) | % | 7.0 | 7.2 | (3) | % | |||||||||||||||||||||||||||
| Total gross profit | $ | 7.1 | $ | 6.9 | 3 | % | $ | 42.6 | $ | 50.0 | (15) | % | |||||||||||||||||||||||
| Unit Sales Volume: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | 884 | 948 | (7) | % | 4,171 | 4,835 | (14) | % | |||||||||||||||||||||||||||
| Used vehicles | 490 | 289 | 70 | % | 2,125 | 2,218 | (4) | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 16 | 66 | (76) | % | 143 | 215 | (33) | % | |||||||||||||||||||||||||||
| Retail new & used vehicles | 1,374 | 1,237 | 11 | % | 6,296 | 7,053 | (11) | % | |||||||||||||||||||||||||||
| Used:New Ratio | 0.55 | 0.30 | 83 | % | 0.51 | 0.46 | 11 | % | |||||||||||||||||||||||||||
| Gross Profit Per Unit: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | $ | 2,307 | $ | 2,429 | (5) | % | $ | 2,687 | $ | 3,430 | (22) | % | |||||||||||||||||||||||
| Used vehicles | $ | 1,969 | $ | 2,307 | (15) | % | $ | 2,420 | $ | 2,386 | 1 | % | |||||||||||||||||||||||
| Finance, insurance and other, net | $ | 903 | $ | 1,066 | (15) | % | $ | 1,106 | $ | 1,017 | 9 | % | |||||||||||||||||||||||
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) | ||||||||||||||||||||||
| 2024 | 2023 | Change | % Change | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Compensation | $ | 263.5 | $ | 240.5 | $ | (23.0) | (10) | % | |||||||||||||||
| Advertising | 19.1 | 20.8 | 1.7 | 8 | % | ||||||||||||||||||
| Rent | 10.7 | 11.5 | 0.8 | 7 | % | ||||||||||||||||||
| Other | 106.3 | 113.5 | 7.2 | 6 | % | ||||||||||||||||||
| Total SG&A expenses | $ | 399.6 | $ | 386.3 | $ | (13.3) | (3) | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Cyber insurance proceeds | $ | 10.0 | $ | — | |||||||||||||||||||
| Acquisition and disposition related gain (loss) | 2.7 | — | |||||||||||||||||||||
| Storm damage charges | (3.2) | — | |||||||||||||||||||||
| Severance and long-term compensation charges | (0.5) | — | |||||||||||||||||||||
| Total SG&A adjustments | $ | 9.0 | $ | — | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses | $ | 408.6 | $ | 386.3 | $ | (22.3) | (6) | % | |||||||||||||||
| Reported: | |||||||||||||||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||||||||||||||
| Compensation | 45.9 | % | 44.4 | % | (150) | bps | |||||||||||||||||
| Advertising | 3.3 | % | 3.8 | % | 50 | bps | |||||||||||||||||
| Rent | 1.9 | % | 2.1 | % | 20 | bps | |||||||||||||||||
| Other | 18.5 | % | 21.1 | % | 260 | bps | |||||||||||||||||
| Total SG&A expenses as a % of gross profit | 69.6 | % | 71.4 | % | 180 | bps | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Cyber insurance proceeds | 1.8 | % | — | % | |||||||||||||||||||
| Acquisition and disposition related gain (loss) | 0.5 | % | — | % | |||||||||||||||||||
| Storm damage charges | (0.6) | % | — | % | |||||||||||||||||||
| Severance and long-term compensation charges | (0.1) | % | — | % | |||||||||||||||||||
| Total effect of adjustments | 1.6 | % | — | % | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses as a % of gross profit | 71.2 | % | 71.4 | % | 20 | bps | |||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Total gross profit | $ | 574.0 | $ | 541.1 | $ | 32.9 | 6 | % | |||||||||||||||
Non-GAAP Reconciliation - Consolidated - SG&A Expenses (Continued)
| Twelve Months Ended December 31, | Better / (Worse) | ||||||||||||||||||||||
| 2024 | 2023 | Change | % Change | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Compensation | $ | 1,013.9 | $ | 1,016.3 | $ | 2.4 | — | % | |||||||||||||||
| Advertising | 84.5 | 92.2 | 7.7 | 8 | % | ||||||||||||||||||
| Rent | 36.6 | 46.1 | 9.5 | 21 | % | ||||||||||||||||||
| Other | 442.0 | 445.9 | 3.9 | 1 | % | ||||||||||||||||||
| Total SG&A expenses | $ | 1,577.0 | $ | 1,600.5 | $ | 23.5 | 1 | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Excess compensation related to CDK outage | $ | (11.4) | $ | — | |||||||||||||||||||
| Storm damage charges | (8.3) | (1.9) | |||||||||||||||||||||
| Severance and long-term compensation charges | (5.5) | (5.1) | |||||||||||||||||||||
| Closed store accrued expenses | (2.1) | — | |||||||||||||||||||||
| Cyber insurance proceeds | 10.0 | — | |||||||||||||||||||||
| Acquisition and disposition related gain (loss) | 5.6 | 20.7 | |||||||||||||||||||||
| Gain (loss) on exit of leased dealerships | 3.0 | (4.3) | |||||||||||||||||||||
| Total SG&A adjustments | $ | (8.7) | $ | 9.4 | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses | $ | 1,568.3 | $ | 1,609.9 | $ | 41.6 | 3 | % | |||||||||||||||
| Reported: | |||||||||||||||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||||||||||||||
| Compensation | 46.2 | % | 45.3 | % | (90) | bps | |||||||||||||||||
| Advertising | 3.9 | % | 4.1 | % | 20 | bps | |||||||||||||||||
| Rent | 1.7 | % | 2.1 | % | 40 | bps | |||||||||||||||||
| Other | 20.1 | % | 19.8 | % | (30) | bps | |||||||||||||||||
| Total SG&A expenses as a % of gross profit | 71.9 | % | 71.3 | % | (60) | bps | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Excess compensation related to CDK outage | (0.5) | % | — | % | |||||||||||||||||||
| Storm damage charges | (0.4) | % | — | % | |||||||||||||||||||
| Severance and long-term compensation charges | (0.3) | % | (0.1) | % | |||||||||||||||||||
| Closed store accrued expenses | (0.1) | % | — | % | |||||||||||||||||||
| Cyber insurance proceeds | 0.5 | % | — | % | |||||||||||||||||||
| Acquisition and disposition related gain (loss) | 0.3 | % | 0.2 | % | |||||||||||||||||||
| Gain (loss) on exit of leased dealerships | 0.1 | % | — | % | |||||||||||||||||||
| Total effect of adjustments | (0.4) | % | 0.1 | % | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses as a % of gross profit | 71.5 | % | 71.4 | % | (10) | bps | |||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Total gross profit | $ | 2,192.8 | $ | 2,245.7 | $ | (52.9) | (2) | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Excess compensation related to CDK outage | $ | 2.0 | $ | — | |||||||||||||||||||
| Used vehicle inventory adjustment | — | 10.0 | |||||||||||||||||||||
| Total adjustments | $ | 2.0 | $ | 10.0 | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted gross profit | $ | 2,194.8 | $ | 2,255.7 | $ | (60.9) | (3) | % | |||||||||||||||
Non-GAAP Reconciliation - Franchised Dealerships Segment - SG&A Expenses
| Three Months Ended December 31, | Better / (Worse) | ||||||||||||||||||||||
| 2024 | 2023 | Change | % Change | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Compensation | $ | 233.9 | $ | 206.9 | $ | (27.0) | (13) | % | |||||||||||||||
| Advertising | 11.9 | 10.8 | (1.1) | (10) | % | ||||||||||||||||||
| Rent | 9.6 | 10.5 | 0.9 | 9 | % | ||||||||||||||||||
| Other | 93.1 | 100.9 | 7.8 | 8 | % | ||||||||||||||||||
| Total SG&A expenses | $ | 348.5 | $ | 329.1 | $ | (19.4) | (6) | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Cyber insurance proceeds | $ | 10.0 | $ | — | |||||||||||||||||||
| Acquisition and disposition related gain (loss) | 3.5 | — | |||||||||||||||||||||
| Storm damage charges | (3.2) | — | |||||||||||||||||||||
| Total SG&A adjustments | $ | 10.3 | $ | — | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses | $ | 358.8 | $ | 329.1 | $ | (29.7) | (9) | % | |||||||||||||||
| Reported: | |||||||||||||||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||||||||||||||
| Compensation | 45.2 | % | 42.1 | % | (310) | bps | |||||||||||||||||
| Advertising | 2.3 | % | 2.2 | % | (10) | bps | |||||||||||||||||
| Rent | 1.9 | % | 2.1 | % | 20 | bps | |||||||||||||||||
| Other | 17.9 | % | 20.6 | % | 270 | bps | |||||||||||||||||
| Total SG&A expenses as a % of gross profit | 67.3 | % | 67.0 | % | (30) | bps | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Cyber insurance proceeds | 1.9 | % | — | % | |||||||||||||||||||
| Acquisition and disposition related gain (loss) | 0.7 | % | — | % | |||||||||||||||||||
| Storm damage charges | (0.6) | % | — | % | |||||||||||||||||||
| Total effect of adjustments | 2.0 | % | — | % | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses as a % of gross profit | 69.3 | % | 67.0 | % | (230) | bps | |||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Total gross profit | $ | 517.4 | $ | 491.3 | $ | 26.1 | 5 | % | |||||||||||||||
Non-GAAP Reconciliation - Franchised Dealerships Segment - SG&A Expenses (Continued)
| Twelve Months Ended December 31, | Better / (Worse) | ||||||||||||||||||||||
| 2024 | 2023 | Change | % Change | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Compensation | $ | 892.4 | $ | 856.6 | $ | (35.8) | (4) | % | |||||||||||||||
| Advertising | 55.1 | 40.5 | (14.6) | (36) | % | ||||||||||||||||||
| Rent | 39.2 | 40.3 | 1.1 | 3 | % | ||||||||||||||||||
| Other | 388.7 | 377.2 | (11.5) | (3) | % | ||||||||||||||||||
| Total SG&A expenses | $ | 1,375.4 | $ | 1,314.6 | $ | (60.8) | (5) | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Excess compensation related to CDK outage | $ | (11.0) | $ | — | |||||||||||||||||||
| Storm damage charges | (8.3) | (1.9) | |||||||||||||||||||||
| Long-term compensation charges | (2.2) | — | |||||||||||||||||||||
| Cyber insurance proceeds | 10.0 | — | |||||||||||||||||||||
| Acquisition and disposition related gain (loss) | 3.5 | 20.9 | |||||||||||||||||||||
| Total SG&A adjustments | $ | (8.0) | $ | 19.0 | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses | $ | 1,367.4 | $ | 1,333.6 | $ | (33.8) | (3) | % | |||||||||||||||
| Reported: | |||||||||||||||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||||||||||||||
| Compensation | 46.0 | % | 42.1 | % | (390) | bps | |||||||||||||||||
| Advertising | 2.8 | % | 2.0 | % | (80) | bps | |||||||||||||||||
| Rent | 2.0 | % | 2.0 | % | — | bps | |||||||||||||||||
| Other | 20.1 | % | 18.5 | % | (160) | bps | |||||||||||||||||
| Total SG&A expenses as a % of gross profit | 70.9 | % | 64.6 | % | (630) | bps | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Excess compensation related to CDK outage | (0.7) | % | — | % | |||||||||||||||||||
| Storm damage charges | (0.5) | % | (0.1) | % | |||||||||||||||||||
| Long-term compensation charges | (0.1) | % | — | % | |||||||||||||||||||
| Cyber insurance proceeds | 0.6 | % | — | % | |||||||||||||||||||
| Acquisition and disposition related gain (loss) | 0.2 | % | 1.1 | % | |||||||||||||||||||
| Total effect of adjustments | (0.5) | % | 1.0 | % | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses as a % of gross profit | 70.4 | % | 65.6 | % | (480) | bps | |||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Total gross profit | $ | 1,941.2 | $ | 2,033.6 | $ | (92.4) | (5) | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Excess compensation related to CDK outage | $ | 2.0 | $ | — | |||||||||||||||||||
| Total adjustments | $ | 2.0 | $ | — | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted gross profit | $ | 1,943.2 | $ | 2,033.6 | $ | (90.4) | (4) | % | |||||||||||||||
Non-GAAP Reconciliation - EchoPark Segment - SG&A Expenses
| Three Months Ended December 31, | Better / (Worse) | ||||||||||||||||||||||
| 2024 | 2023 | Change | % Change | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Compensation | $ | 23.8 | $ | 26.9 | $ | 3.1 | 12 | % | |||||||||||||||
| Advertising | 6.7 | 9.6 | 2.9 | 30 | % | ||||||||||||||||||
| Rent | 0.9 | 1.0 | 0.1 | 10 | % | ||||||||||||||||||
| Other | 11.2 | 10.5 | (0.7) | (7) | % | ||||||||||||||||||
| Total SG&A expenses | $ | 42.6 | $ | 48.0 | $ | 5.4 | 11 | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Acquisition and disposition related gain (loss) | $ | (0.8) | $ | — | |||||||||||||||||||
| Total SG&A adjustments | $ | (0.8) | $ | — | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses | $ | 41.8 | $ | 48.0 | $ | 6.2 | 13 | % | |||||||||||||||
| Reported: | |||||||||||||||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||||||||||||||
| Compensation | 48.6 | % | 62.8 | % | 1,420 | bps | |||||||||||||||||
| Advertising | 13.7 | % | 22.5 | % | 880 | bps | |||||||||||||||||
| Rent | 1.9 | % | 2.3 | % | 40 | bps | |||||||||||||||||
| Other | 22.8 | % | 24.7 | % | 190 | bps | |||||||||||||||||
| Total SG&A expenses as a % of gross profit | 87.0 | % | 112.3 | % | 2,530 | bps | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Acquisition and disposition related gain (loss) | (1.5) | % | — | % | |||||||||||||||||||
| Total effect of adjustments | (1.5) | % | — | % | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses as a % of gross profit | 85.5 | % | 112.3 | % | 2,680 | bps | |||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Total gross profit | $ | 49.0 | $ | 42.8 | $ | 6.2 | 14 | % | |||||||||||||||
Non-GAAP Reconciliation - EchoPark Segment - SG&A Expenses (Continued)
| Twelve Months Ended December 31, | Better / (Worse) | ||||||||||||||||||||||
| 2024 | 2023 | Change | % Change | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Compensation | $ | 95.8 | $ | 132.0 | $ | 36.2 | 27 | % | |||||||||||||||
| Advertising | 27.7 | 49.9 | 22.2 | 44 | % | ||||||||||||||||||
| Rent | (1.7) | 6.3 | 8.0 | 127 | % | ||||||||||||||||||
| Other | 43.9 | 58.8 | 14.9 | 25 | % | ||||||||||||||||||
| Total SG&A expenses | $ | 165.7 | $ | 247.0 | $ | 81.3 | 33 | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Severance and long-term compensation charges | $ | (2.8) | $ | (5.1) | |||||||||||||||||||
| 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) | |||||||||||||||||||||
| Acquisition and disposition related gain (loss) | 2.1 | (0.3) | |||||||||||||||||||||
| Total SG&A adjustments | $ | (0.2) | $ | (9.7) | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses | $ | 165.5 | $ | 237.3 | $ | 71.8 | 30 | % | |||||||||||||||
| Reported: | |||||||||||||||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||||||||||||||
| Compensation | 46.1 | % | 81.6 | % | 3,550 | bps | |||||||||||||||||
| Advertising | 13.3 | % | 30.9 | % | 1,760 | bps | |||||||||||||||||
| Rent | (0.8) | % | 3.9 | % | 470 | bps | |||||||||||||||||
| Other | 21.1 | % | 36.3 | % | 1,520 | bps | |||||||||||||||||
| Total SG&A expenses as a % of gross profit | 79.7 | % | 152.7 | % | 7,300 | bps | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Severance and long-term compensation charges | (1.4) | % | (7.7) | % | |||||||||||||||||||
| Closed store accrued expenses | (1.1) | % | — | % | |||||||||||||||||||
| Excess compensation related to CDK outage | (0.2) | % | — | % | |||||||||||||||||||
| Gain (loss) on exit of leased dealerships | 1.5 | % | (6.4) | % | |||||||||||||||||||
| Acquisition and disposition related gain (loss) | 1.1 | % | (0.4) | % | |||||||||||||||||||
| Total effect of adjustments | (0.1) | % | (14.5) | % | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses as a % of gross profit | 79.6 | % | 138.2 | % | 7,310 | bps | |||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Total gross profit | $ | 207.9 | $ | 161.8 | $ | 46.1 | 28 | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Used vehicle inventory adjustment | $ | — | $ | 10.0 | |||||||||||||||||||
| Total adjustments | $ | — | $ | 10.0 | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted gross profit | $ | 207.9 | $ | 171.8 | $ | 36.1 | 21 | % | |||||||||||||||
Non-GAAP Reconciliation - Powersports Segment - SG&A Expenses
| Three Months Ended December 31, | Better / (Worse) | ||||||||||||||||||||||
| 2024 | 2023 | Change | % Change | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Compensation | $ | 5.9 | $ | 6.7 | $ | 0.8 | 12 | % | |||||||||||||||
| Advertising | 0.5 | 0.4 | (0.1) | (25) | % | ||||||||||||||||||
| Rent | 0.1 | — | (0.1) | — | % | ||||||||||||||||||
| Other | 2.0 | 2.1 | 0.1 | 5 | % | ||||||||||||||||||
| Total SG&A expenses | $ | 8.5 | $ | 9.2 | $ | 0.7 | 8 | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Long-term compensation charges | $ | (0.5) | $ | — | |||||||||||||||||||
| Total SG&A adjustments | $ | (0.5) | $ | — | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses | $ | 8.0 | $ | 9.2 | $ | 1.2 | 13.0 | % | |||||||||||||||
| Reported: | |||||||||||||||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||||||||||||||
| Compensation | 77.5 | % | 96.2 | % | 1,870 | bps | |||||||||||||||||
| Advertising | 6.0 | % | 5.2 | % | (80) | bps | |||||||||||||||||
| Rent | 1.4 | % | 0.7 | % | (70) | bps | |||||||||||||||||
| Other | 28.3 | % | 29.5 | % | 120 | bps | |||||||||||||||||
| Total SG&A expenses as a % of gross profit | 113.2 | % | 131.6 | % | 1,840 | bps | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Long-term compensation charges | (6.6) | % | — | % | |||||||||||||||||||
| Total effect of adjustments | (6.6) | % | — | % | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses as a % of gross profit | 106.6 | % | 131.6 | % | 2,500 | bps | |||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Total gross profit | $ | 7.5 | $ | 7.0 | $ | 0.5 | 7 | % | |||||||||||||||
Non-GAAP Reconciliation - Powersports Segment - SG&A Expenses (Continued)
| Twelve Months Ended December 31, | Better / (Worse) | ||||||||||||||||||||||
| 2024 | 2023 | Change | % Change | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Compensation | $ | 25.7 | $ | 27.7 | $ | 2.0 | 7 | % | |||||||||||||||
| Advertising | 1.7 | 1.8 | 0.1 | 6 | % | ||||||||||||||||||
| Rent | (0.9) | (0.5) | 0.4 | 80 | % | ||||||||||||||||||
| Other | 9.4 | 9.9 | 0.5 | 5 | % | ||||||||||||||||||
| Total SG&A expenses | $ | 35.9 | $ | 38.9 | $ | 3.0 | 8 | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Long-term compensation charges | $ | (0.5) | $ | — | |||||||||||||||||||
| Total SG&A adjustments | $ | (0.5) | $ | — | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses | $ | 35.4 | $ | 38.9 | $ | 3.5 | 9 | % | |||||||||||||||
| Reported: | |||||||||||||||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||||||||||||||
| Compensation | 58.7 | % | 55.0 | % | (370) | bps | |||||||||||||||||
| Advertising | 3.9 | % | 3.5 | % | (40) | bps | |||||||||||||||||
| Rent | (2.1) | % | (1.0) | % | 110 | bps | |||||||||||||||||
| Other | 21.5 | % | 19.7 | % | (180) | bps | |||||||||||||||||
| Total SG&A expenses as a % of gross profit | 82.0 | % | 77.2 | % | (480) | bps | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Long-term compensation charges | (1.1) | % | — | % | |||||||||||||||||||
| Total effect of adjustments | (1.1) | % | — | % | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses as a % of gross profit | 80.9 | % | 77.2 | % | (370) | bps | |||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Total gross profit | $ | 43.7 | $ | 50.3 | $ | (6.6) | (13) | % | |||||||||||||||
Non-GAAP Reconciliation - Franchised Dealerships Segment - Income (Loss) Before Taxes and Segment Income (Loss)
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||||||||||||||
| Income (loss) before taxes | $ | 89.4 | $ | 89.8 | — | % | $ | 256.4 | $ | 447.0 | (43) | % | |||||||||||||||||||||||
| Add: impairment charges | 0.2 | 1.0 | 1.2 | 1.0 | |||||||||||||||||||||||||||||||
| Segment income (loss) | $ | 89.6 | $ | 90.8 | (1) | % | $ | 257.6 | $ | 448.0 | (43) | % | |||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||
| Cyber insurance proceeds | $ | (10.0) | $ | — | $ | (10.0) | $ | — | |||||||||||||||||||||||||||
| Acquisition and disposition related (gain) loss | (3.5) | — | (3.5) | (20.9) | |||||||||||||||||||||||||||||||
| Storm damage charges | 3.2 | — | 8.3 | 1.9 | |||||||||||||||||||||||||||||||
| Long-term compensation charges | — | — | 2.2 | — | |||||||||||||||||||||||||||||||
| Excess compensation related to CDK outage | — | — | 13.0 | — | |||||||||||||||||||||||||||||||
| Total pre-tax adjustments | $ | (10.3) | $ | — | $ | 10.0 | $ | (19.0) | |||||||||||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||||||||||||||
| Segment income (loss) | $ | 79.3 | $ | 90.8 | (13) | % | $ | 267.6 | $ | 429.0 | (38) | % | |||||||||||||||||||||||
Non-GAAP Reconciliation - EchoPark Segment - Income (Loss) Before Taxes and Segment Income (Loss)
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||||||||||||||
| Income (loss) before taxes | $ | (3.9) | $ | (31.6) | 88 | % | $ | 0.8 | $ | (210.8) | 100 | % | |||||||||||||||||||||||
| Add: impairment charges | 1.3 | 15.7 | 2.7 | 78.3 | |||||||||||||||||||||||||||||||
| Segment income (loss) | $ | (2.6) | $ | (15.9) | 84 | % | $ | 3.5 | $ | (132.5) | 103 | % | |||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||
| Acquisition and disposition related (gain) loss | $ | 0.8 | $ | — | $ | (2.1) | $ | 0.3 | |||||||||||||||||||||||||||
| Loss (gain) on exit of leased dealerships | — | — | (3.0) | 4.3 | |||||||||||||||||||||||||||||||
| Severance and long-term compensation charges | — | — | 2.8 | 5.1 | |||||||||||||||||||||||||||||||
| Used vehicle inventory valuation adjustment | — | — | — | 10.0 | |||||||||||||||||||||||||||||||
| Excess compensation related to CDK outage | — | — | 0.4 | — | |||||||||||||||||||||||||||||||
| Closed store accrued expenses | — | — | 2.1 | — | |||||||||||||||||||||||||||||||
| Total pre-tax adjustments | $ | 0.8 | $ | — | $ | 0.2 | $ | 19.7 | |||||||||||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||||||||||||||
| Segment income (loss) | $ | (1.8) | $ | (15.9) | 89 | % | $ | 3.7 | $ | (112.8) | 103 | % | |||||||||||||||||||||||
Non-GAAP Reconciliation - Powersports Segment - Income (Loss) Before Taxes and Segment Income (Loss)
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||||||||||||||
| Income (loss) before taxes | $ | (3.4) | $ | (3.5) | 3 | % | $ | (1.1) | $ | 5.7 | (119) | % | |||||||||||||||||||||||
| Add: impairment charges | — | — | — | — | |||||||||||||||||||||||||||||||
| Segment income (loss) | $ | (3.4) | $ | (3.5) | 3 | % | $ | (1.1) | $ | 5.7 | (119) | % | |||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||
| Long-term compensation charges | $ | 0.5 | $ | — | $ | 0.5 | $ | — | |||||||||||||||||||||||||||
| Total pre-tax adjustments | $ | 0.5 | $ | — | $ | 0.5 | $ | — | |||||||||||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||||||||||||||
| Adjusted segment income (loss) | $ | (2.9) | $ | (3.5) | 17 | % | $ | (0.6) | $ | 5.7 | (111) | % | |||||||||||||||||||||||
Non-GAAP Reconciliation - Consolidated - Net Income (Loss) and Diluted Earnings (Loss) Per Share
| Three Months Ended December 31, 2024 | Three Months Ended December 31, 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 | 35.2 | $ | 58.6 | $ | 1.67 | 34.8 | $ | 38.7 | $ | 1.11 | |||||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||
| Acquisition and disposition related (gain) loss | $ | (2.7) | $ | — | |||||||||||||||||||||||||||||||
| Impairment charges | 1.5 | 16.7 | |||||||||||||||||||||||||||||||||
| Storm damage charges | 3.2 | — | |||||||||||||||||||||||||||||||||
| Severance and long-term compensation charges | 0.5 | — | |||||||||||||||||||||||||||||||||
| Cyber insurance proceeds | (10.0) | — | |||||||||||||||||||||||||||||||||
| Total pre-tax adjustments | $ | (7.5) | $ | 16.7 | |||||||||||||||||||||||||||||||
| Tax effect of above items | 2.0 | (4.3) | |||||||||||||||||||||||||||||||||
| Non-recurring tax items | — | 5.8 | |||||||||||||||||||||||||||||||||
| Adjusted net income (loss), diluted shares, and diluted earnings (loss) per share | 35.2 | $ | 53.1 | $ | 1.51 | 34.8 | $ | 56.9 | $ | 1.63 | |||||||||||||||||||||||||
| Twelve Months Ended December 31, 2024 | Twelve Months Ended December 31, 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 | 35.0 | $ | 216.0 | $ | 6.18 | 35.9 | $ | 178.2 | $ | 4.97 | |||||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||
| Acquisition and disposition related (gain) loss | $ | (5.6) | $ | (20.7) | |||||||||||||||||||||||||||||||
| Storm damage charges | 8.3 | 1.9 | |||||||||||||||||||||||||||||||||
| Impairment charges | 3.9 | 79.3 | |||||||||||||||||||||||||||||||||
| Loss (gain) on exit of leased dealerships | (3.0) | 4.3 | |||||||||||||||||||||||||||||||||
| Severance and long-term compensation charges | 5.5 | 5.1 | |||||||||||||||||||||||||||||||||
| Used vehicle inventory valuation adjustment | — | 10.0 | |||||||||||||||||||||||||||||||||
| Closed store accrued expenses | 2.1 | — | |||||||||||||||||||||||||||||||||
| Cyber insurance proceeds | (10.0) | — | |||||||||||||||||||||||||||||||||
| Excess compensation related to CDK outage | 13.4 | — | |||||||||||||||||||||||||||||||||
| Total pre-tax adjustments | $ | 14.6 | $ | 79.9 | |||||||||||||||||||||||||||||||
| Tax effect of above items | (3.8) | (19.9) | |||||||||||||||||||||||||||||||||
| Non-recurring tax items | (31.0) | 5.8 | |||||||||||||||||||||||||||||||||
| Adjusted net income (loss), diluted shares, and diluted earnings (loss) per share | 35.0 | $ | 195.8 | $ | 5.60 | 35.9 | $ | 244.0 | $ | 6.81 | |||||||||||||||||||||||||
Non-GAAP Reconciliation - Adjusted EBITDA
| Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
| Franchised Dealerships Segment | EchoPark Segment | Powersports Segment | Total | Franchised Dealerships Segment | EchoPark Segment | Powersports Segment | Total | ||||||||||||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 58.6 | $ | 38.7 | |||||||||||||||||||||||||||||||||||||||||||
| Provision for income taxes | 23.5 | 16.0 | |||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before taxes | $ | 89.4 | $ | (3.9) | $ | (3.4) | $ | 82.1 | $ | 89.8 | $ | (31.6) | $ | (3.5) | $ | 54.7 | |||||||||||||||||||||||||||||||
| Non-floor plan interest (1) | 27.1 | 0.6 | 0.7 | 28.4 | 25.9 | 0.7 | 0.1 | 26.7 | |||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization (2) | 34.2 | 5.4 | 1.2 | 40.8 | 31.2 | 6.1 | 1.0 | 38.3 | |||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | 5.5 | — | — | 5.5 | 6.0 | — | — | 6.0 | |||||||||||||||||||||||||||||||||||||||
| Impairment charges | 0.2 | 1.3 | — | 1.5 | 1.0 | 15.7 | — | 16.7 | |||||||||||||||||||||||||||||||||||||||
| Severance and long-term compensation charges | — | — | 0.5 | 0.5 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Acquisition and disposition-related (gain) loss | (3.5) | 0.8 | — | (2.7) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Storm damage charges | 3.2 | — | — | 3.2 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Cyber insurance proceeds | (10.0) | — | — | (10.0) | — | — | — | ||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 146.1 | $ | 4.2 | $ | (1.0) | $ | 149.3 | $ | 153.9 | $ | (9.1) | $ | (2.4) | $ | 142.4 | |||||||||||||||||||||||||||||||
| Twelve Months Ended December 31, 2024 | Twelve Months Ended December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
| Franchised Dealerships Segment | EchoPark Segment | Powersports Segment | Total | Franchised Dealerships Segment | EchoPark Segment | Powersports Segment | Total | ||||||||||||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 216.0 | $ | 178.2 | |||||||||||||||||||||||||||||||||||||||||||
| Provision for income taxes | 40.1 | 63.7 | |||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before taxes | $ | 256.4 | $ | 0.8 | $ | (1.1) | $ | 256.1 | $ | 447.0 | $ | (210.8) | $ | 5.7 | $ | 241.9 | |||||||||||||||||||||||||||||||
| Non-floor plan interest (1) | 107.0 | 2.6 | 2.6 | 112.2 | 103.2 | 3.2 | 1.7 | 108.1 | |||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization (2) | 130.0 | 21.6 | 4.3 | 155.9 | 118.8 | 26.6 | 3.4 | 148.8 | |||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | 21.3 | — | — | 21.3 | 23.3 | — | — | 23.3 | |||||||||||||||||||||||||||||||||||||||
| Loss (gain) on exit of leased dealerships | — | (3.0) | — | (3.0) | — | 4.3 | — | 4.3 | |||||||||||||||||||||||||||||||||||||||
| Impairment charges | 1.2 | 2.7 | — | 3.9 | 1.0 | 78.3 | — | 79.3 | |||||||||||||||||||||||||||||||||||||||
| Loss on debt extinguishment | 0.6 | — | — | 0.6 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Severance and long-term compensation charges | 2.2 | 2.9 | 0.5 | 5.6 | — | 5.1 | — | 5.1 | |||||||||||||||||||||||||||||||||||||||
| Acquisition and disposition-related (gain) loss | (3.8) | (2.5) | — | (6.3) | (20.7) | 0.3 | — | (20.4) | |||||||||||||||||||||||||||||||||||||||
| Storm damage charges | 8.3 | — | — | 8.3 | 1.9 | — | — | 1.9 | |||||||||||||||||||||||||||||||||||||||
| Used vehicle inventory valuation adjustment | — | — | — | — | — | 10.0 | — | 10.0 | |||||||||||||||||||||||||||||||||||||||
| Excess compensation related to CDK outage | 13.0 | 0.4 | — | 13.4 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Cyber insurance proceeds | (10.0) | — | — | (10.0) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Closed store accrued expenses | — | 2.1 | — | 2.1 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 526.2 | $ | 27.6 | $ | 6.3 | $ | 560.1 | $ | 674.5 | $ | (83.0) | $ | 10.8 | $ | 602.3 | |||||||||||||||||||||||||||||||
(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 December 31, 2024 | Three Months Ended December 31, 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 | $ | 506.7 | $ | (0.5) | $ | 506.2 | $ | 505.0 | $ | 51.6 | $ | 556.6 | — | % | (101) | % | (9) | % | |||||||||||||||||||||||||||||||||||
| Total gross profit | $ | 49.5 | $ | (0.5) | $ | 49.0 | $ | 38.3 | $ | 4.5 | $ | 42.8 | 29 | % | (111) | % | 14 | % | |||||||||||||||||||||||||||||||||||
| Income (loss) before taxes | $ | (1.0) | $ | (2.9) | $ | (3.9) | $ | (12.6) | $ | (19.0) | $ | (31.6) | 92 | % | 85 | % | 88 | % | |||||||||||||||||||||||||||||||||||
| Non-floor plan interest (1) | $ | 0.5 | $ | 0.1 | $ | 0.6 | $ | 0.6 | $ | 0.1 | $ | 0.7 | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization (2) | $ | 5.4 | $ | — | $ | 5.4 | $ | 5.7 | $ | 0.4 | $ | 6.1 | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||
| Acquisition and disposition-related (gain) loss | $ | — | $ | 0.8 | $ | 0.8 | $ | — | $ | — | $ | — | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||
| Impairment charges | $ | — | $ | 1.3 | $ | 1.3 | $ | — | $ | 15.7 | $ | 15.7 | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 4.9 | $ | (0.7) | $ | 4.2 | $ | (6.3) | $ | (2.8) | $ | (9.1) | 178 | % | 75 | % | 146 | % | |||||||||||||||||||||||||||||||||||
| Used vehicle unit sales volume | 16,674 | $ | — | 16,674 | 16,071 | 1,491 | 17,562 | 4 | % | (100) | % | (5) | % | ||||||||||||||||||||||||||||||||||||||||
| Total used vehicle and F&I gross profit per unit | 3,004 | NM | $ | 2,927 | $ | 2,398 | NM | $ | 2,461 | 25 | % | NM | 19 | % | |||||||||||||||||||||||||||||||||||||||
NM = Not Meaningful
Non-GAAP Reconciliation - EchoPark Segment Operations and Closed Stores (Continued)
| Twelve Months Ended December 31, 2024 | Twelve Months Ended December 31, 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 | $ | 2,116.4 | $ | 11.4 | $ | 2,127.8 | $ | 2,026.3 | $ | 408.1 | $ | 2,434.4 | 4 | % | (97) | % | (13) | % | |||||||||||||||||||||||||||||||||||
| Total gross profit | $ | 210.5 | $ | (2.6) | $ | 207.9 | $ | 142.7 | $ | 19.1 | $ | 161.8 | 48 | % | (114) | % | 28 | % | |||||||||||||||||||||||||||||||||||
| Income (loss) before taxes | $ | 8.3 | $ | (7.5) | $ | 0.8 | $ | (79.9) | $ | (130.9) | $ | (210.8) | 110 | % | 94 | % | 100 | % | |||||||||||||||||||||||||||||||||||
| Non-floor plan interest (1) | $ | 2.2 | $ | 0.4 | $ | 2.6 | $ | 2.4 | $ | 0.8 | $ | 3.2 | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization (2) | $ | 21.6 | $ | — | $ | 21.6 | $ | 22.2 | $ | 4.4 | $ | 26.6 | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||
| Acquisition and disposition-related (gain) loss | $ | — | $ | (2.5) | $ | (2.5) | $ | — | $ | 0.3 | $ | 0.3 | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||
| Closed store accrued expenses | $ | — | $ | 2.1 | $ | 2.1 | $ | — | $ | — | $ | — | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||
| Impairment charges | $ | — | $ | 2.7 | $ | 2.7 | $ | — | $ | 78.3 | $ | 78.3 | 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 | $ | — | $ | — | $ | — | $ | 5.8 | $ | 4.2 | $ | 10.0 | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 32.5 | $ | (4.9) | $ | 27.6 | $ | (49.5) | $ | (33.5) | $ | (83.0) | 166 | % | 85 | % | 133 | % | |||||||||||||||||||||||||||||||||||
| Used vehicle unit sales volume | 68,690 | 363 | 69,053 | 62,605 | 11,071 | 73,676 | 10 | % | (97) | % | (6) | % | |||||||||||||||||||||||||||||||||||||||||
| Total used vehicle and F&I gross profit per unit | $ | 3,074 | NM | $ | 3,029 | $ | 2,253 | NM | $ | 2,183 | 36 | % | NM | 39 | % | ||||||||||||||||||||||||||||||||||||||
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.
Investor Presentation | Fourth Quarter 2024 Updated February 12, 2025 SONIC AUTOMOTIVE Exhibit 99.2
NYSE SAH Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events, are not historical facts and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. These statements can generally be identified by lead-in words such as “may,” “will,” “should,” “could,” “believe,” “expect,” “estimate,” “anticipate,” “intend,” “plan,” “project,” “foresee” and other similar words or phrases. Statements that describe our Company’s objectives, plans or goals are also forward-looking statements. Examples of such forward-looking information we may be discussing in this presentation include, without limitation, our anticipated future new vehicle unit sales volume, revenues and profitability (including per unit data), our anticipated future used vehicle unit sales volume, revenues and profitability (including per unit data), future levels of consumer demand for new and used vehicles, our anticipated future parts, service and collision repair (“Fixed Operations”) gross profit, our anticipated future finance and insurance (“F&I”) gross profit, our anticipated expense reductions, targeted increases to our technician headcount, hybrid and electric vehicle trends and related GPU headwinds, long-term annual revenue and profitability targets, anticipated future growth capital expenditures, profitability and pricing expectations in our EchoPark Segment, EchoPark’s omnichannel strategy, anticipated future EchoPark population coverage, anticipated future EchoPark revenue and unit sales volume, anticipated future performance and growth of our Franchised Dealerships Segment, anticipated growth and profitability of our Powersports Segment, anticipated liquidity positions, anticipated industry new vehicle sales volume, anticipated industry used vehicle supply, the implementation of growth and operating strategies, including acquisitions of dealerships and properties, anticipated future acquisition synergies, the return of capital to stockholders, anticipated future success and impacts from the implementation of our strategic initiatives, and earnings per share expectations. You are cautioned that these forward-looking statements are not guarantees of future performance, involve risks and uncertainties and actual results may differ materially from those projected in the forward-looking statements as a result of various factors. These risks and uncertainties include, without limitation, the ultimate impact on the Company of the June 2024 CDK Global cybersecurity incident, economic conditions in the markets in which we operate, supply chain disruptions and manufacturing delays, labor shortages, the impacts of inflation and fluctuations in interest rates, new and used vehicle industry sales volume, the success of our operational strategies, the rate and timing of overall economic expansion or contraction, 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”). These forward-looking statements, risks, uncertainties and additional factors speak only as of the date of this presentation. We undertake no obligation to update any such statements, except as required under federal securities laws and the rules and regulations of the SEC. 2
NYSE SAH Sonic Automotive Company Overview • Our Franchised Dealerships Segment is a full-service automotive retail business with a diversified brand portfolio and multiple strategic growth levers • 108 locations - $11.9 billion in FY 2024 revenues • Our EchoPark Segment Provides high growth potential in a highly fragmented pre-owned vehicle market • 18 locations - $2.1 billion in FY 2024 revenues • Our Powersports Segment represents an early-stage consolidation growth opportunity at attractive multiples • 15 locations - $157 million in FY 2024 revenues • We believe our diversified business model provides significant earnings growth opportunities in our EchoPark and Powersports segments that may help to offset any industry-driven margin headwinds we may face in the franchised business, minimizing the earnings downside to consolidated Sonic results over time 3 Note: Location counts as of February 12, 2025. * Refer to appendix for calculation and reconciliation of Adjusted EPS (a non-GAAP measure). $9.8 $12.4 $14.0 $14.4 $14.2 $3.6 $3.9 $(1.21) $8.06 $2.23 $4.97 $6.18 $1.11 $1.67 $3.85 $8.46 $9.61 $6.81 $5.60 $1.63 $1.51 $- $2 $4 $6 $8 $10 $12 $14 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Q4 2023 Q4 2024 Total Revenues and Earnings Per Share Revenue (Billions) GAAP EPS Adjusted EPS* NYSE: SAH – A Fortune 300 Diversified Automotive Retailer
NYSE SAH Diversified Portfolio And Business Lines 4 Geographic Distribution TX 28% CA 24% CO 8% TN 7% FL 5% AL 5% NC 5% GA 4% ID 3% VA 2% MD 2% NV 2% All Others 5% Total Revenues By State Note: Percentages are percent of total for year ended December 31, 2024. 5% 32% 13% 42% 36% 8%46% 18% Revenue Gross Profit New Vehicle Used Vehicle (Including Wholesale) Parts, Service & Collision Repair ("Fixed Operations") Finance & Insurance ("F&I") Category % of Total Revenue Franchised Brand % of Total Revenue BMW 21% Mercedes 11% Audi 5% Lexus 4% Land Rover 4% Porsche 3% Cadillac 2% Other Luxury (1) 3% Honda 9% Toyota 7% Other Import (2) 3% EchoPark 15% Non-Franchised 15% Chevrolet GMC Buick 5% Ford 4% Chrysler Dodge Jeep RAM 3% Powersports 1% Powersports (3) 1% Luxury 53% 19%Import Domestic 12% (1) Includes Alfa Romeo, Jaguar, Maserati, MINI, Polestar and Volvo (2) Includes Hyundai, Nissan, Mazda, Subaru and Volkswagen (3) Includes Harley-Davidson, Kawasaki, BRP, Polaris, Honda, Suzuki, BMW Motorrad, Yamaha, Ducati, and Indian Motorcycle Business Line MixBrand Distribution
NYSE SAH Strategic Focus – Franchised Dealerships Segment • Focus on opportunities to offset normalizing new vehicle gross profit margins through growth in parts and service (Fixed Operations) and finance and insurance (F&I) gross profit • Actively manage new and used vehicle inventory turnover and adapt to electric vehicle (EV) transition • Focus on selling, general and administrative (SG&A) expense control to maintain structural improvement in SG&A leverage as a percent of gross profit • Opportunity to pursue accretive strategic acquisition opportunities as market normalizes Franchised Dealerships Strategy $8.3 $10.1 $11.5 $11.8 $11.9 $3.0 $3.4 $231 $530 $642 $448 $258 $91 $90 $360 $692 $839 $675 $526 $154 $146 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Q4 2023 Q4 2024 Total Revenues, Segment Income*, and Adjusted EBITDA* Revenue (Billions) Segment Income* (Millions) Adjusted EBITDA* (Millions) * Refer to appendix for calculation and reconciliation of Segment Income, Adjusted EBITDA and Adjusted SG&A Expenses As % Of Gross Profit (non-GAAP measures). 5 2.3% 1.5% 1.7% 2.0% 2.8% 2.2% 2.3% 45.7% 40.8% 40.2% 42.1% 45.2% 42.1% 45.2% 19.8% 16.0% 16.2% 19.5% 20.4% 20.6% 19.9% 3.8% 2.6% 2.0% 2.0% 2.0% 2.1% 1.9% 71.6% 60.9% 60.1% 65.6% 70.4% 67.0% 69.3% 71.3% 61.0% 59.9% 64.6% 70.9% 67.0% 67.3% FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Q4 2023 Q4 2024 Reported and Adjusted SG&A Expenses as % of Gross Profit* Advertising* Compensation* Other* Rent* Adjusted SG&A Expenses* Reported SG&A Expenses
NYSE SAH Strategic Focus – Franchised Dealerships Segment (continued) 6 91.9 99.8 99.4 107.3 111.5 28.5 32.3 $45.9 $49.9 $56.1 $57.9 $57.7 $58.4 $59.4 $2,536 $4,595 $6,591 $4,836 $3,382 $4,289 $3,238 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Q4 2023 Q4 2024 Retail New Vehicle Unit Sales Volume, Revenue, and Gross Profit Per Unit Unit Sales Volume (Thousands) Revenue Per Unit (Thousands) GPU 101.9 105.5 108.5 100.2 102.0 24.4 25.7 $23.0 $27.5 $31.3 $30.4 $28.6 $29.9 $29.5 $1,207 $1,784 $1,607 $1,626 $1,473 $1,440 $1,401 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Q4 2023 Q4 2024 Retail Used Vehicle Unit Sales Volume, Revenue, and Gross Profit Per Unit Unit Sales Volume (Thousands) Revenue Per Unit (Thousands) GPU Retail New And Used Vehicles • The rate of new vehicle GPU decline has moderated, and we believe the "new normal" will remain higher than pre-pandemic levels, in the $2,500-$3,000 per unit range • We believe used vehicle GPU may decline over time if we are able to drive higher retail used vehicle unit sales volume by supplementing our inventory levels from wholesale auction sources as off-lease inventory supply grows beyond 2025 • Strategic focus to return to selling at least 100 retail used vehicles per store per month, on average (represents approximately 25% improvement in retail used vehicle volume throughput per store) • As new and used vehicle sales volumes have recovered from pandemic-induced lows, F&I gross profit and fixed operations gross profit have benefitted from higher industry retail volume Note: New and used vehicle GPU, sales volume, and F&I and fixed operations gross profit expectations and projections are estimates of future results. Actual results may differ. See “Forward-Looking Statements.”
NYSE SAH Strategic Focus – Franchised Dealerships Segment (continued) 7 Fixed Operations And F&I • Increased technician headcount by 335 technicians in FY 2024, projected to generate approximately $100M in annualized fixed operations gross profit once fully productive • Fixed operations parts and labor cost inflation is generally passed along to customers, supporting stable fixed operations profit margins over time • Vehicle affordability challenges may drive consumers to choose to repair their current vehicle to extend its life rather than replace it with a newer vehicle, benefitting fixed operations revenues • F&I gross profit per unit increased nearly 50% from pre- pandemic to FY 2024, driven primarily by higher warranty contract penetration rates • We believe F&I GPU will remain structurally higher than pre- pandemic as a result of optimized F&I presentation and consumer preferences • Even in an elevated interest rate environment, finance contract penetration rates remain robust and are supported by manufacturer financing or lease incentives only available at franchised dealerships $1,846 $2,160 $2,453 $2,403 $2,374 $2,330 $2,424 77.9% 77.6% 72.9% 71.2% 72.6% 70.7% 72.6% 40.9% 44.4% 49.4% 48.9% 48.0% 47.1% 46.5% FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Q4 2023 Q4 2024 F&I Gross Profit Per Unit and Product Penetration Rates F&I GPU Finance Contract Penetration Rate Warranty Penetration Rate $595 $673 $787 $853 $909 $213 $238 49.8% 50.2% 49.5% 49.7% 50.4% 50.0% 50.8% FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Q4 2023 Q4 2024 Fixed Operations Gross Profit and Gross Margin % Fixed Operations Gross Profit (Millions) Fixed Operations Gross Margin % Note: Technician headcount, fixed operations profit margin and F&I GPU are estimates of future results. Actual results may differ. See “Forward-Looking Statements.”
NYSE SAH Strategic Focus – Franchised Dealerships Segment (continued) Hybrid vs. Electric Vehicle Trends • Industry sales volume penetration rates for combined hybrid electric vehicles (HEV) and plug-in hybrid electric vehicles (PHEV) are double the penetration rates for battery electric vehicles (BEV) and are trending upward • We believe there is an easier path to consumer adoption of alternative power trains as more manufacturers expand their HEV and PHEV model offerings, which we are seeing with model year 2025 vehicles • Hybrid new vehicle GPU was higher than internal combustion engine (ICE) new vehicle GPU in our import and domestic brands, and marginally lower in our luxury brands, driven by better consumer demand and relatively lower hybrid days’ supply vs. both ICE and BEV • BEV new vehicle GPU lags both hybrid and ICE vehicles as a result of excess inventory supply, resulting in BEV sales negatively impacting total new vehicle GPU by approximately $400 in Q4 2024 and $350 in FY 2024 – to the extent OEMs can better align BEV supply with consumer demand, this GPU headwind could decrease in FY 2025 • Initial BEV repair and maintenance trends show lower frequency but higher gross profit per repair order vs. ICE vehicles, while hybrid vehicles create opportunity to service both types of power trains 18.0% 9.0% 0% 4% 8% 12% 16% 20% Fe b- 19 M ay -1 9 Au g- 19 N ov -1 9 Fe b- 20 M ay -2 0 Au g- 20 N ov -2 0 Fe b- 21 M ay -2 1 Au g- 21 N ov -2 1 Fe b- 22 M ay -2 2 Au g- 22 N ov -2 2 Fe b- 23 M ay -2 3 Au g- 23 N ov -2 3 Fe b- 24 M ay -2 4 Au g- 24 N ov -2 4 Hybrid Vehicle vs. EV Industry Sales Volume Penetration Hybrid (HEV/PHEV) Penetration % BEV Penetration % So ur ce : M or ga n St an le y R es ea rc h 8 100% Luxury Import Domestic Total Sonic FY 2024 Average New Vehicle Relative GPU by Power Train BEV Hybrid ICE Average New Vehicle GPU Note: Average new vehicle relative GPU by power train in the chart above is shown as a percentage of blended average GPU for each brand group and franchised dealerships segment total GPU, where 100% represents the blended average GPU for each brand group and the franchised dealerships segment total GPU. Note: Hybrid and electric vehicle trends and GPU headwinds are estimates of future results. Actual results may differ. See “Forward- Looking Statements.”
NYSE SAH Strategic Focus – EchoPark Segment • Returned to positive segment adjusted EBITDA* in FY 2024 after 3 years of used vehicle industry headwinds • Expect to resume disciplined expansion of EchoPark footprint once used vehicle market conditions are supportive • Long-term goal to reach 90% of the U.S. population • Below-market pricing and no-haggle, transparent guest experience expected to drive market share gains • EchoPark maintains the #1 ranking in guest satisfaction among all major pre- owned vehicle retailers according to Reputation EchoPark Strategy * Refer to appendix for calculation and reconciliation of Adjusted EBITDA (a non-GAAP measure). Note: “EchoPark Operations” chart data includes currently operating stores and corporate/holding company results. “Closed Stores” chart data includes results from stores that are not currently in operation as of the date of this presentation. Average store count is the weighted average number of stores in the “EchoPark Operations” group for each period. $16.7 $(27.0) $(70.1) $(49.5) $32.5 $(6.3) $4.9 $(5.7) $(19.3) $(35.3) $(33.5) $(4.9) $(2.8) $(0.7) $(110) $(80) $(50) $(20) $10 $40 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Q4 2023 Q4 2024 EchoPark Segment Adjusted EBITDA* (Millions) EchoPark Operations (with Holding Company) Closed Stores 57,161 77,835 64,107 73,676 69,053 17,562 16,674 - 200 400 600 800 1,000 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Q4 2023 Q4 2024 M on th ly V ol um e Pe r S to re EchoPark Segment Retail Unit Sales Volume Average Monthly Volume Per Store Used Retail Unit Sales Volume Average Store Count 25 18 9
NYSE SAH Strategic Focus – EchoPark Segment (continued) 10 • Focus on maintaining positive retail used vehicle GPU throughout FY 2025 due to faster inventory turns and stability in wholesale and retail prices and used car supply • Maintain focus on optimizing F&I product offerings and pricing to drive F&I GPU growth in FY 2025 • Expect relative stability in used vehicle wholesale and retail prices in FY 2025, reducing inventory acquisition costs and potentially driving incremental industry sales volume as consumer affordability improves • Used vehicle supply is projected to reach its lowest point in late 2025, due to lower levels of off-lease inventory as a result of declines in new vehicle industry sales volume since 2020 and fewer lease originations • Beyond 2025, gradual expansion of used vehicle supply and further normalization of used vehicle pricing should drive consumer demand and higher retail sales volume for EchoPark EchoPark Strategy $10.7 $(47.8) $(105.4) $(83.0) $27.6 $(9.1) $4.2 $2,013 $1,762 $2,657 $2,183 $3,029 $2,461 $2,974 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Q4 2023 Q4 2024 EchoPark Segment Adjusted EBITDA* and Total GPU (Used GPU + F&I GPU) Adjusted EBITDA* (Millions) Total GPU Source: J.D. Power Vehicle Age (0-5 Years) * Refer to appendix for calculation and reconciliation of Adjusted EBITDA (a non-GAAP measure). Note: F&I GPU growth, used vehicle price and supply, and sales volume projections are estimates of future results. Actual results may differ. See “Forward-Looking Statements.” 4.8 5.1 5.1 5.1 4.7 4.1 3.4 3.7 3.8 4.6 2019 2020 2021 2022 2023 2024 2025E 2026E 2027E 2028E Used Vehicle Supply Trend For Units Up To Five Years In Age 0 1 2 3 4 5 Forecast
NYSE SAH 11 • Standardize operating playbooks and processes in existing stores to facilitate future organic and acquisition growth • Complete roll out of modernized inventory management and marketing strategy • Manage expenses and inventory to mitigate effects of weaker seasonal demand in Q1 and Q4 while supporting higher seasonal demand in Q2 and Q3 • Expect to realize synergies from network effect, driving potential gains in used vehicle volume and F&I • Identify desirable acquisition opportunities at attractive valuations to grow this segment Powersports Strategy Note: Multiples are based on the most recent Haig Partners Report. Multiples are typically applied to a normalized dealership earnings before taxes. Luxury includes: Audi, BMW, Jaguar Land Rover, Lexus, Mercedes-Benz and Porsche Other Luxury includes: Cadillac and Volvo Import includes: Toyota, Honda, Subaru, Kia, Hyundai, VW Domestic includes: Buick, Chevrolet, Ford, GMC, Chrysler, Jeep, Dodge, RAM Strategic Focus – Powersports Segment * Refer to appendix for calculation and reconciliation of Adjusted EBITDA (a non-GAAP measure). Note: Gains in used vehicle volume and F&I are estimates of future results. Actual results may differ. See “Forward-Looking Statements.” $(2.4) $(0.8) $2.3 $5.8 $(1.0) $(4.0) $(2.0) $- $2.0 $4.0 $6.0 $8.0 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Powersports Segment Adjusted EBITDA* (Millions) Industry Seasonally Weak In Q4 & Q1 Acquisition Multiple Dealership Type Low High Luxury 6.0x 10.0x Other Luxury 3.5x 5.0x Import 3.0x 8.0x Domestic 3.0x 4.5x Powersports 3.0x 4.5x
NYSE SAH Strategic Focus – Consolidated Company 12 • Expect to maintain strong balance sheet and free cash flows • Balanced capital allocation strategy prioritizes highest return opportunity • History of returning capital to shareholders via dividend and share repurchases • Quarterly dividend per share has grown 250% since 2019, current forward yield ~2.0% • Reduced outstanding shares by 21% since 2019 ($252 million remaining authorization, or ~10% of market cap) • Net debt to adjusted EBITDA ratio* of 2.15 for the 12 months ended Q4 2024 is within our target leverage range Consolidated Company Strategy $244 $399 $501 $374 $384 $526 $703 $794 $846 $862 $- $200 $400 $600 $800 $1,000 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 $ In M ill io ns Strong Balance Sheet and Liquidity Cash and Floor Plan Deposit Balance Total Liquidity * Refer to appendix for calculation and reconciliation of Net Debt to Adjusted EBITDA Ratio (a non-GAAP measure). Note: Dividend yield and market cap are based on stock price as of February 10, 2025. Note: Balance sheet and free cash flow projections are estimates of future results. Actual results may differ. See “Forward-Looking Statements.” $20 $1,019 $102 $75 $57 $127 $298 $227 $204 $187 $72 $93 $262 $178 $34 $17 $18 $35 $40 $41 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 $ In M ill io ns Capital Allocation Trend Acquisitions Cap Ex Share Repurchases Dividends Note: Cap Ex represents total purchases of land, property and equipment from consolidated statements of cash flows included in Sonic’s Annual Report on Form 10-K for the applicable fiscal year.
NYSE SAH Sonic Automotive FY 2025 Outlook • Expect low single digit percentage growth in revenues and gross profit, driven by: • Continued normalization of new vehicle GPU in the $2,500 to $3,000 per unit range, depending on seasonality, brand mix, and EV margin volatility • Low single digit percentage growth in new and used retail unit sales volume, consistent with projected industry growth rates • Mid single digit percentage growth in fixed operations gross profit, driven by additional technician headcount and service marketing strategy • Mid single digit percentage F&I gross profit growth, driven by higher retail unit volume and F&I GPU in the $2,400 per unit range • Expect adjusted SG&A expenses as a % of gross profit* of approximately 70% Consolidated • Expect low single digit percentage growth in revenues and gross profit • Expect adjusted SG&A expenses as a % of gross profit* in the low 70% range Franchised Dealerships Segment EchoPark Segment • Expect adjusted EBITDA* between $30-$33 million, driven by: • Anticipated operational improvement at seven stores that were not yet profitable on a pre-tax basis in FY 2024 • Mid single digit percentage growth in used retail unit sales volume, driven by organic volume growth opportunities at existing store footprint and an increase in advertising spend per retail unit to build brand awareness • Low single digit percentage F&I GPU growth, driven by continued focus on optimizing underperforming stores • Expect SG&A expenses as a % of gross profit in the high 70% range (target below 70% at maturity) Powersports Segment • Expect adjusted EBITDA* between $7-$8 million, with majority coming in Q3 (Q1 & Q4 slightly negative due to seasonality) * Refer to appendix for calculation and reconciliation of Adjusted EBITDA (a non-GAAP measure). Note: Above outlook is based on projections. Actual results may differ. See “Forward-Looking Statements.” Financial data may also include certain forward-looking information that is not presented in accordance with GAAP. We believe that a quantitative reconciliation of such forward-looking information to the most directly comparable GAAP financial measure cannot be made available without unreasonable efforts, because a reconciliation of these non-GAAP financial measures would require an estimate of future non-operating items such as impairment charges, gain/loss on property dispositions, and/or non-recurring SG&A expenses. Neither the timing nor likelihood of these events, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of such forward-looking information to the most directly comparable GAAP financial measure is not provided. 13
Appendix: Financial Tables & Non-GAAP Reconciliations
NYSE SAH Definition of Non-GAAP Financial Measures 15 Adjusted Net Income is defined as GAAP net income, excluding certain non-operating charges and/or benefits that may affect the comparability of results from period to period. Adjusted Earnings Per Diluted Share (“Adjusted EPS”) is defined as Adjusted Net Income divided by diluted weighted-average common shares outstanding. Segment Income (Loss) is defined as segment income (loss) before taxes, less impairment charges. Adjusted Segment Income (Loss) is defined as Segment Income (Loss), excluding certain non- operating charges and/or benefits that may affect the comparability of results from period to period. Adjusted Gross Profit is defined as GAAP gross profit, excluding certain non-operating charges that may affect the comparability of results from period to period. Adjusted SG&A Expenses is defined as GAAP SG&A expenses, excluding certain non-operating charges and/or benefits that may affect the comparability of results from period to period. Adjusted SG&A Expenses as a % of Gross Profit is defined as GAAP SG&A expenses, excluding certain non-operating charges and/or benefits that may affect the comparability of results from period to period, expressed as a percentage of adjusted gross profit. Adjusted EBITDA is defined as GAAP net income (loss), excluding the provision for income taxes, non-floor plan interest expense, depreciation and amortization expense, stock-based compensation expense, and certain non-operating charges and/or benefits that may affect the comparability of results from period to period. Segment Adjusted EBITDA and Segment Adjusted EBITDA Loss is defined as segment income (loss) before taxes, excluding non-floor plan interest expense, depreciation and amortization expense, stock-based compensation expense, and certain non-operating charges and/or benefits that may affect the comparability of results from period to period. Net Debt to Adjusted EBITDA Ratio is defined as long-term debt (including current portion), less cash and equivalents, less outstanding floor plan deposit balance, expressed as a ratio to Adjusted EBITDA. To supplement the Company’s financial data presented in accordance with accounting principles generally accepted in the United States (“GAAP”), this presentation contains certain non- GAAP financial measures, such as adjusted net income, adjusted earnings per diluted share, segment income (loss), adjusted segment income (loss), adjusted SG&A expenses as a percentage of gross profit, adjusted EBITDA, adjusted EBITDA loss, and net debt to adjusted EBITDA ratio. The Company has provided reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures in the appendix to this presentation. Management believes that these non-GAAP financial measures are important supplemental measures of performance which improve the comparability and transparency of the Company’s disclosures and provide a meaningful presentation of the Company’s results. Management also considers these non-GAAP financial measures when making financial, operating and strategic decisions. Financial data may also include certain forward-looking information that is not presented in accordance with GAAP. We believe that a quantitative reconciliation of such forward-looking information to the most directly comparable GAAP financial measure cannot be made available without unreasonable efforts, because a reconciliation of these non-GAAP financial measures would require an estimate of future non-operating items such as impairment charges, gain/loss on property dispositions, and/or non-recurring SG&A expenses. Neither the timing nor likelihood of these events, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of such forward-looking information to the most directly comparable GAAP financial measure is not provided.
NYSE SAH GAAP Income Statement – Annual Trend – Consolidated 16 NM = Not MeaningfulNote: Earnings (loss) per share and gross profit per unit metrics are calculated based on actual unrounded amounts. FY 2024 Better / (Worse) % Change (In millions, except unit, per unit, and per share data) FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 Year-Over-Year Revenues: Retail new vehicles 6,507.5$ 6,304.6$ 5,622.6$ 4,993.4$ 4,224.4$ 3% Fleet new vehicles 95.3 92.2 99.4 124.6 56.8 3% Total new vehicles 6,602.8 6,396.8 5,722.0 5,118.0 4,281.2 3% Used vehicles 4,780.1 5,213.6 5,515.4 4,933.6 3,604.2 (8%) Wholesale vehicles 287.1 318.8 484.9 367.2 197.4 (10%) Total vehicles 11,670.0 11,929.2 11,722.3 10,418.8 8,082.8 (2%) Parts, service and collision repair 1,846.5 1,759.5 1,599.7 1,340.4 1,194.3 5% Finance, insurance and other, net ("F&I") 707.8 683.7 679.1 637.2 489.9 4% Total revenues 14,224.3 14,372.4 14,001.1 12,396.4 9,767.0 (1%) Gross profit: Retail new vehicles 388.4 535.4 662.8 459.8 233.2 (27%) Fleet new vehicles 3.0 4.0 4.9 1.6 0.9 (26%) Total new vehicles 391.4 539.4 667.7 461.4 234.1 (27%) Used vehicles 170.7 151.2 180.8 133.0 105.2 13% Wholesale vehicles (6.0) (2.6) (3.1) 9.6 0.1 (132%) Total vehicles 556.1 688.0 845.4 604.0 339.4 (19%) Parts, service and collision repair 928.9 874.0 792.5 673.1 594.3 6% Finance, insurance and other, net 707.8 683.7 679.1 637.2 489.9 4% Total gross profit 2,192.8 2,245.7 2,317.0 1,914.3 1,423.6 (2%) SG&A expenses (1,577.0) (1,600.5) (1,555.1) (1,274.7) (1,028.7) 1% Impairment charges (3.9) (79.3) (320.4) (0.1) (270.0) NM Depreciation and amortization (150.4) (142.3) (127.5) (101.1) (91.0) (6%) Operating income (loss) 461.5 423.6 314.0 538.4 33.9 9% Interest expense, floor plan (86.9) (67.2) (34.3) (16.7) (27.2) (29%) Interest expense, other, net (118.0) (114.6) (89.9) (48.0) (41.6) (3%) Other income (expense), net (0.5) 0.1 0.2 (15.5) 0.1 NM Income (loss) from continuing operations before taxes 256.1 241.9 190.0 458.2 (34.8) 6% Income tax benefit (expense) (40.1) (63.7) (101.5) (109.3) (15.9) 37% Net income (loss) from continuing operations 216.0$ 178.2$ 88.5$ 348.9$ (50.7)$ 21% Diluted weighted-average shares outstanding 35.0 35.9 39.7 43.3 42.5 3% Diluted earnings (loss) per share from continuing operations 6.18$ 4.97$ 2.23$ 8.06$ (1.21)$ 24% Unit sales volume: Retail new vehicles 115,694 112,110 101,168 99,943 91,939 3% Fleet new vehicles 1,805 2,000 2,115 3,543 1,342 (10%) Used vehicles 173,257 176,147 173,209 183,292 159,025 (2%) Wholesale vehicles 32,223 32,330 35,323 36,795 32,057 0% Gross profit per unit ("GPU"): Retail new vehicles 3,358$ 4,776$ 6,552$ 4,600$ 2,536$ (30%) Used vehicles 985$ 859$ 1,043$ 720$ 667$ 15% F&I 2,450$ 2,372$ 2,475$ 2,250$ 1,952$ 3%
NYSE SAH Non-GAAP Reconciliation – Annual Trend – Consolidated 17 Note: Earnings (loss) per share and SG&A expenses as a percentage of gross profit metrics are calculated based on actual unrounded amounts. Balance sheet amounts are as of December 31 for the FY then ended. (In millions, except per share data) FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 Reported net income (loss) from continuing operations 216.0$ 178.2$ 88.5$ 348.9$ (50.7)$ Adjustments: Impairment charges 3.9$ 79.3$ 320.4$ -$ 269.2$ Acquisition and disposition-related (gain) loss (5.6) (20.7) (9.1) 1.2 (9.2) Severance and long-term compensation charges 5.5 5.1 4.4 6.5 - Loss on debt extinguishment - - - 15.6 - Storm damage charges 8.3 1.9 - - - Loss (gain) on exit of leased dealerships (3.0) 4.3 - - - Used vehicle inventory valuation adjustment - 10.0 - - - Closed store accrued expenses 2.1 - - - - Cyber insurance proceeds (10.0) - - - - Excess compensation related to CDK outage 13.4 - - - - Total pre-tax adjustments 14.6 79.9 315.7 23.3 260.0 Tax effect of above items (3.8) (19.9) (22.6) (5.9) (40.4) Non-recurring tax items (31.0) 5.8 - - - Total net income effect of adjustments (20.2) 65.8 293.1 17.4 219.6 Adjusted net income (loss) from continuing operations 195.8$ 244.0$ 381.6$ 366.3$ 168.9$ Diluted weighted-average shares outstanding 35.0 35.9 39.7 43.3 43.9 Adjusted diluted earnings (loss) per share from continuing operations 5.60$ 6.81$ 9.61$ 8.46$ 3.85$ Reported SG&A expenses (1,577.0)$ (1,600.5)$ (1,555.1)$ (1,274.7)$ (1,028.7)$ Acquisition and disposition-related (gain) loss (5.6) (20.7) (9.1) 1.2 (9.2) Severance and long-term compensation charges 5.5 5.1 4.4 6.5 - Storm damage charges 8.3 1.9 - - - Loss (gain) on exit of leased dealerships (3.0) 4.3 - - - Closed store accrued expenses 2.1 - - - - Cyber insurance proceeds (10.0) - - - - Excess compensation related to CDK outage 11.4 - - - - Adjusted SG&A expenses (1,568.3)$ (1,609.9)$ (1,559.8)$ (1,267.0)$ (1,037.9)$ Adjusted SG&A expenses as a percentage of gross profit 71.5% 71.4% 67.3% 66.2% 72.9% Reported net income (loss) 216.0$ 178.2$ 88.5$ 348.9$ (51.4)$ Income tax (benefit) expense 40.1 63.7 101.5 109.3 15.6 Income (loss) before taxes 256.1 241.9 190.0 458.2 (35.8) Non-floor plan interest 112.2 108.1 84.7 44.7 38.7 Depreciation and amortization 155.9 148.8 132.7 104.3 93.9 Stock-based compensation expense 21.3 23.3 16.0 15.0 11.7 Loss (gain) on exit of leased dealerships (3.0) 4.3 - - - Impairment charges 3.9 79.3 320.4 0.1 270.0 Loss on debt extinguishment 0.6 - - 15.6 - Severance and long-term compensation charges 5.6 5.1 4.4 8.0 - Excess compensation related to CDK outage 13.4 - - - - Acquisition and disposition-related (gain) loss (6.3) (20.4) (9.7) (0.4) (8.2) Hail and storm damage charges 8.3 1.9 - - - Used vehicle inventory valuation adjustment - 10.0 - - - Closed store accrued expenses 2.1 - - - - Cyber insurance proceeds (10.0) - - - - Adjusted EBITDA 560.1$ 602.3$ 738.5$ 645.5$ 370.3$ Long-term debt (including current portion) 1,588.0$ 1,676.6$ 1,751.7$ 1,561.2$ 720.1$ Cash and equivalents (44.0) (28.9) (229.2) (299.4) (170.3) Floor plan deposit balance (340.0) (345.0) (272.0) (99.8) (73.2) Net debt 1,204.0$ 1,302.7$ 1,250.5$ 1,162.0$ 476.6$ Net debt to adjusted EBITDA ratio 2.15 2.16 1.69 1.80 1.29 Long-term debt (including current portion) to adjusted EBITDA ratio 2.84 2.78 2.37 2.42 1.94
NYSE SAH GAAP Income Statement – Quarterly Trend – Consolidated 18 NM = Not MeaningfulNote: Earnings (loss) per share and gross profit per unit metrics are calculated based on actual unrounded amounts. Q4 2024 Better / (Worse) % Change (In millions, except unit, per unit, and per share data) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Sequential Year-Over-Year Revenues: Retail new vehicles 1,932.3$ 1,566.8$ 1,552.6$ 1,455.8$ 1,680.2$ 23% 15% Fleet new vehicles 27.3 22.2 26.2 19.6 21.8 23% 25% Total new vehicles 1,959.6 1,589.0 1,578.8 1,475.4 1,702.0 23% 15% Used vehicles 1,197.6 1,180.7 1,186.2 1,215.6 1,222.4 1% (2%) Wholesale vehicles 71.3 67.2 71.3 77.3 62.6 6% 14% Total vehicles 3,228.5 2,836.9 2,836.3 2,768.3 2,987.0 14% 8% Parts, service and collision repair 476.7 479.0 444.1 446.7 431.9 0% 10% Finance, insurance and other, net ("F&I") 190.6 175.6 172.6 169.0 166.0 9% 15% Total revenues 3,895.8 3,491.5 3,453.0 3,384.0 3,584.9 12% 9% Gross profit: Retail new vehicles 106.6 87.6 97.8 96.4 124.5 22% (14%) Fleet new vehicles 0.7 0.6 1.0 0.7 0.9 8% (22%) Total new vehicles 107.3 88.2 98.8 97.1 125.4 22% (14%) Used vehicles 37.8 41.2 44.7 47.0 37.5 (8%) 1% Wholesale vehicles (3.3) (1.3) (0.6) (0.8) (3.2) (145%) (3%) Total vehicles 141.8 128.1 142.9 143.3 159.7 11% (11%) Parts, service and collision repair 241.6 239.9 223.6 223.9 215.4 1% 12% Finance, insurance and other, net 190.6 175.6 172.6 169.0 166.0 9% 15% Total gross profit 574.0 543.6 539.1 536.2 541.1 6% 6% SG&A expenses (399.6) (392.1) (393.0) (392.2) (386.3) (2%) (3%) Impairment charges (1.5) - (1.4) (1.0) (16.7) NM NM Depreciation and amortization (39.4) (37.9) (37.0) (36.3) (36.6) (4%) (8%) Operating income (loss) 133.5 113.6 107.7 106.7 101.5 17% 32% Interest expense, floor plan (21.4) (23.0) (22.2) (20.3) (18.4) 7% (16%) Interest expense, other, net (29.9) (29.8) (29.3) (29.0) (28.3) 0% (6%) Other income (expense), net (0.1) - (0.5) 0.1 (0.1) NM NM Income (loss) before taxes 82.1 60.8 55.7 57.5 54.7 35% 50% Income tax benefit (expense) (23.5) 13.4 (14.5) (15.5) (16.0) (276%) (47%) Net income (loss) 58.6$ 74.2$ 41.2$ 42.0$ 38.7$ (21%) 51% Diluted weighted-average shares outstanding 35.2 34.9 34.9 34.9 34.8 (1%) (1%) Diluted earnings (loss) per share 1.67$ 2.13$ 1.18$ 1.20$ 1.11$ (22%) 50% Unit sales volume: Retail new vehicles 33,190 28,657 27,705 26,142 29,439 16% 13% Fleet new vehicles 506 406 514 379 500 25% 1% Used vehicles 42,896 43,474 42,831 44,056 42,216 (1%) 2% Wholesale vehicles 8,460 7,792 7,859 8,112 7,127 9% 19% Gross profit per unit ("GPU"): Retail new vehicles 3,212$ 3,056$ 3,531$ 3,688$ 4,230$ 5% (24%) Used vehicles 881$ 947$ 1,044$ 1,068$ 888$ (7%) (1%) F&I 2,505$ 2,434$ 2,447$ 2,407$ 2,317$ 3% 8%
NYSE SAH Non-GAAP Reconciliation – Quarterly Trend – Consolidated 19 NM = Not MeaningfulNote: Earnings (loss) per share and SG&A expenses as a percentage of gross profit metrics are calculated based on actual unrounded amounts. Q4 2024 Better / (Worse) % Change (In millions, except per share data) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Sequential Year-Over-Year Reported net income (loss) 58.6$ 74.2$ 41.2$ 42.0$ 38.7$ (21%) 51% Adjustments: Impairment charges 1.5$ -$ 1.4$ 1.0$ 16.7$ NM NM Acquisition and disposition-related (gain) loss (2.7) (2.3) (0.6) - - NM NM Severance and long-term compensation charges 0.5 - 0.7 4.3 - NM NM Storm damage charges 3.2 1.5 3.6 - - NM NM Loss (gain) on exit of leased dealerships - - (3.0) - - NM NM Closed store accrued expenses - - - 2.1 - NM NM Excess compensation related to CDK outage - 1.8 11.6 - - NM NM Cyber insurance proceeds (10.0) - - - - NM NM Total pre-tax adjustments (7.5) 1.0 13.7 7.4 16.7 NM NM Tax effect of above items 2.0 (0.2) (3.6) (1.9) (4.3) NM NM Non-recurring tax items - (31.0) - - 5.8 NM NM Total net income effect of adjustments (5.5) (30.2) 10.1 5.5 18.2 NM NM Adjusted net income (loss) 53.1$ 44.0$ 51.3$ 47.5$ 56.9$ 21% (7%) Diluted weighted-average shares outstanding 35.2 34.9 34.9 34.9 34.8 (1%) (1%) Adjusted diluted earnings (loss) per share 1.51$ 1.26$ 1.47$ 1.36$ 1.63$ 20% (7%) Reported gross profit 574.0$ 543.6$ 539.1$ 536.2$ 541.1$ 6% 6% Excess compensation related to CDK outage - - 2.0 - - NM NM Adjusted gross profit 574.0$ 543.6$ 541.1$ 536.2$ 541.1$ 6% 6% Reported SG&A expenses (399.6)$ (392.1)$ (393.0)$ (392.2)$ (386.3)$ (2%) (3%) Acquisition and disposition-related (gain) loss (2.7) (2.3) (0.6) - - NM NM Severance and long-term compensation charges 0.5 - 0.7 4.3 - NM NM Storm damage charges 3.2 1.5 3.6 - - NM NM Loss (gain) on exit of leased dealerships - - (3.0) - - NM NM Closed store accrued expenses - - - 2.1 - NM NM Excess compensation related to CDK outage - 1.8 9.6 - - NM NM Cyber insurance proceeds (10.0) - - - - NM NM Adjusted SG&A expenses (408.6)$ (391.1)$ (382.7)$ (385.8)$ (386.3)$ (5%) (6%) Adjusted SG&A expenses as a percentage of gross profit 71.2% 71.9% 70.7% 72.0% 71.4% 70 bps 20 bps Reported net income (loss) 58.6$ 74.2$ 41.2$ 42.0$ 38.7$ (21%) 51% Income tax (benefit) expense 23.5 (13.4) 14.5 15.5 16.0 NM NM Income (loss) before taxes 82.1 60.8 55.7 57.5 54.7 35% 50% Non-floor plan interest 28.4 28.4 28.0 27.4 26.7 NM NM Depreciation and amortization 40.8 39.3 38.0 37.9 38.3 NM NM Stock-based compensation expense 5.5 5.5 5.9 4.4 6.0 NM NM Loss (gain) on exit of leased dealerships - - (3.0) - - NM NM Impairment charges 1.5 - 1.4 1.0 16.7 NM NM Loss on debt extinguishment - - 0.6 - - NM NM Severance and long-term compensation charges 0.5 - 0.8 4.3 - NM NM Excess compensation related to CDK outage - 1.8 11.6 - - NM NM Acquisition and disposition-related (gain) loss (2.7) (2.3) (1.3) - - NM NM Closed store accrued expenses - - - 2.1 - NM NM Storm damage charges 3.2 1.5 3.6 - - NM NM Cyber insurance proceeds (10.0) - - - - NM NM Adjusted EBITDA 149.3$ 135.0$ 141.3$ 134.6$ 142.4$ 11% 5%
NYSE SAH GAAP Income Statement – Annual Trend – Franchised Dealerships Segment 20 NM = Not MeaningfulNote: Gross profit per unit metrics are calculated based on actual unrounded amounts. FY 2024 Better / (Worse) % Change (In millions, except unit and per unit data) FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 Year-Over-Year Revenues: Retail new vehicles 6,425.5$ 6,215.0$ 5,581.6$ 4,984.4$ 4,224.4$ 3% Fleet new vehicles 95.3 92.2 99.4 124.6 56.8 3% Total new vehicles 6,520.8 6,307.2 5,681.0 5,109.0 4,281.2 3% Used vehicles 2,919.8 3,050.3 3,391.5 2,901.0 2,345.9 (4%) Wholesale vehicles 188.9 204.5 314.0 257.2 168.7 (8%) Total vehicles 9,629.5 9,562.0 9,386.5 8,267.2 6,795.8 1% Parts, service and collision repair 1,802.9 1,714.2 1,588.0 1,340.4 1,194.4 5% Finance, insurance and other, net ("F&I") 506.8 498.6 510.1 443.5 357.8 2% Total revenues 11,939.2 11,774.8 11,484.6 10,051.1 8,348.0 1% Gross profit: Retail new vehicles 376.9 518.7 655.3 458.8 233.2 (27%) Fleet new vehicles 3.0 4.0 4.9 1.5 0.9 (26%) Total new vehicles 379.9 522.7 660.2 460.3 234.1 (27%) Used vehicles 150.2 162.9 174.5 188.1 122.9 (8%) Wholesale vehicles (4.6) (3.3) (6.4) 0.6 (0.8) (40%) Total vehicles 525.5 682.3 828.3 649.0 356.2 (23%) Parts, service and collision repair 908.9 852.7 786.7 673.1 595.4 7% Finance, insurance and other, net 506.8 498.6 510.1 443.5 357.8 2% Total gross profit 1,941.2 2,033.6 2,125.1 1,765.6 1,309.4 (5%) SG&A expenses (1,375.4) (1,314.6) (1,273.0) (1,076.9) (933.7) (5%) Impairment charges (1.2) (1.0) (115.5) - (270.0) NM Depreciation and amortization (124.4) (112.3) (101.8) (84.8) (79.9) (11%) Operating income (loss) 440.2 605.7 634.8 603.9 25.8 (27%) Interest expense, floor plan (70.6) (49.2) (23.6) (11.8) (24.0) (44%) Interest expense, other, net (112.7) (109.7) (85.1) (46.3) (40.7) (3%) Other income (expense), net (0.5) 0.2 - (15.5) 0.1 NM Income (loss) before taxes 256.4$ 447.0$ 526.1$ 530.3$ (38.8)$ (43%) Unit sales volume: Retail new vehicles 111,450 107,257 99,424 99,815 91,939 4% Fleet new vehicles 1,805 2,000 2,115 3,543 1,342 (10%) Used vehicles 101,976 100,210 108,512 105,457 101,864 2% Wholesale vehicles 21,018 20,602 24,052 25,128 24,879 2% Gross profit per unit ("GPU"): Retail new vehicles 3,382$ 4,836$ 6,591$ 4,595$ 2,536$ (30%) Used vehicles 1,473$ 1,626$ 1,607$ 1,784$ 1,207$ (9%) F&I 2,374$ 2,403$ 2,453$ 2,160$ 1,846$ (1%)
NYSE SAH Non-GAAP Reconciliation – Annual Trend – Franchised Dealerships Segment 21 Note: SG&A expenses as a percentage of gross profit metrics are calculated based on actual unrounded amounts. (In millions) FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 Reported income (loss) before taxes 256.4$ 447.0$ 526.1$ 530.3$ (38.8)$ Impairment charges 1.2 1.0 115.5 - 270.0 Segment income (loss) 257.6$ 448.0$ 641.6$ 530.3$ 231.2$ Acquisition and disposition-related (gain) loss (3.5) (20.9) (9.1) 1.2 (4.0) Long-term compensation charges 2.2 - 4.4 - - Loss on debt extinguishment - - - 15.6 - Storm damage charges 8.3 1.9 - - - Excess compensation related to CDK outage 13.0 - - - - Cyber insurance proceeds (10.0) - - - - Adjusted segment income (loss) 267.6$ 429.0$ 636.9$ 547.1$ 227.2$ Reported SG&A expenses (1,375.4)$ (1,314.6)$ (1,273.0)$ (1,076.9)$ (933.7)$ Acquisition and disposition-related (gain) loss (3.5) (20.9) (9.1) 1.2 (4.0) Long-term compensation charges 2.2 - 4.4 - - Storm damage charges 8.3 1.9 - - - Excess compensation related to CDK outage 11.0 - - - - Cyber insurance proceeds (10.0) - - - - Adjusted SG&A expenses (1,367.4)$ (1,333.6)$ (1,277.7)$ (1,075.7)$ (937.7)$ Adjusted SG&A expenses as a percentage of gross profit 70.4% 65.6% 60.1% 60.9% 71.6% Income (loss) before taxes 256.4 447.0 526.1 530.3 (38.8) Non-floor plan interest 107.0 103.2 80.0 43.0 37.7 Depreciation and amortization 130.0 118.8 107.0 87.9 82.8 Stock-based compensation expense 21.3 23.3 16.0 15.0 11.7 Loss (gain) on exit of leased dealerships - - - - - Impairment charges 1.2 1.0 115.5 15.6 270.0 Loss on debt extinguishment 0.6 - - - - Severance and long-term compensation charges 2.2 - 4.4 - - Excess compensation related to CDK outage 13.0 - - - - Acquisition and disposition-related (gain) loss (3.8) (20.7) (9.7) - (3.1) Storm damage charges 8.3 1.9 - - - Cyber insurance proceeds (10.0) - - - - Adjusted EBITDA 526.2$ 674.5$ 839.3$ 691.8$ 360.3$
NYSE SAH GAAP Income Statement – Quarterly Trend – Franchised Dealerships Segment 22 NM = Not MeaningfulNote: Gross profit per unit metrics are calculated based on actual unrounded amounts. Q4 2024 Better / (Worse) % Change (In millions, except unit and per unit data) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Sequential Year-Over-Year Revenues: Retail new vehicles 1,914.8$ 1,539.9$ 1,530.9$ 1,439.9$ 1,664.1$ 24% 15% Fleet new vehicles 27.2 22.2 26.2 19.6 21.8 23% 25% Total new vehicles 1,942.0 1,562.1 1,557.1 1,459.5 1,685.9 24% 15% Used vehicles 757.0 701.4 732.1 729.3 727.5 8% 4% Wholesale vehicles 49.8 42.4 48.4 48.6 39.3 18% 27% Total vehicles 2,748.8 2,305.9 2,337.6 2,237.4 2,452.7 19% 12% Parts, service and collision repair 469.7 458.9 434.4 439.9 425.2 2% 10% Finance, insurance and other, net ("F&I") 140.5 122.4 124.2 119.6 123.2 15% 14% Total revenues 3,359.0 2,887.2 2,896.2 2,796.9 3,001.1 16% 12% Gross profit: Retail new vehicles 104.4 83.5 94.9 94.1 122.2 25% (15%) Fleet new vehicles 0.7 0.6 1.0 0.7 0.9 8% (22%) Total new vehicles 105.1 84.1 95.9 94.8 123.1 25% (15%) Used vehicles 36.0 34.6 38.7 40.8 35.1 4% 3% Wholesale vehicles (2.7) (1.1) (0.5) (0.2) (2.7) (130%) 0% Total vehicles 138.4 117.6 134.1 135.4 155.5 18% (11%) Parts, service and collision repair 238.5 230.7 219.0 220.8 212.6 3% 12% Finance, insurance and other, net 140.5 122.4 124.2 119.6 123.2 15% 14% Total gross profit 517.4 470.7 477.3 475.8 491.3 10% 5% SG&A expenses (348.5) (340.5) (347.9) (338.5) (329.1) (2%) (6%) Impairment charges (0.2) - - (1.0) (1.0) NM NM Depreciation and amortization (32.7) (31.5) (30.4) (29.8) (29.4) (4%) (11%) Operating income (loss) 136.0 98.7 99.0 106.5 131.8 38% 3% Interest expense, floor plan (18.0) (18.6) (18.0) (16.0) (14.6) 3% (23%) Interest expense, other, net (28.6) (28.5) (27.8) (27.8) (27.5) 0% (4%) Other income (expense), net - - (0.5) - 0.1 NM NM Income (loss) before taxes 89.4$ 51.6$ 52.7$ 62.7$ 89.8$ 73% 0% Unit sales volume: Retail new vehicles 32,250 27,391 26,512 25,297 28,491 18% 13% Fleet new vehicles 506 406 514 379 500 25% 1% Used vehicles 25,702 24,940 25,668 25,666 24,365 3% 5% Wholesale vehicles 5,692 4,973 5,248 5,105 4,440 14% 28% Gross profit per unit ("GPU"): Retail new vehicles 3,238$ 3,047$ 3,579$ 3,722$ 4,289$ 6% (25%) Used vehicles 1,401$ 1,386$ 1,508$ 1,592$ 1,440$ 1% (3%) F&I 2,424$ 2,340$ 2,380$ 2,348$ 2,330$ 4% 4%
NYSE SAH Non-GAAP Reconciliation – Quarterly Trend – Franchised Dealerships Segment 23 NM = Not MeaningfulNote: SG&A expenses as a percentage of gross profit metrics are calculated based on actual unrounded amounts. Q4 2024 Better / (Worse) % Change (In millions) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Sequential Year-Over-Year Reported income (loss) before taxes 89.4$ 51.6$ 52.7$ 62.7$ 89.8$ 73% 0% Impairment charges 0.2 - - 1.0 1.0 NM NM Segment income (loss) 89.6$ 51.6$ 52.7$ 63.7$ 90.8$ 74% (1%) Acquisition and disposition-related (gain) loss (3.5) - - - - NM NM Long-term compensation charges - 1.8 - 2.2 - NM NM Storm damage charges 3.2 1.5 3.6 - - NM NM Excess compensation related to CDK outage - - 11.2 - - NM NM Cyber insurance proceeds (10.0) - - - - NM NM Adjusted segment income (loss) 79.3$ 54.9$ 67.5$ 65.9$ 90.8$ 45% (13%) Reported gross profit 517.4$ 470.7$ 477.3$ 475.8$ 491.3$ 10% 5% Excess compensation related to CDK outage - - 2.0 - - NM NM Adjusted gross profit 517.4$ 470.7$ 479.3$ 475.8$ 491.3$ 10% 5% Reported SG&A expenses (348.5)$ (340.5)$ (347.9)$ (338.5)$ (329.1)$ (2%) (6%) Acquisition and disposition-related (gain) loss (3.5) - - - - NM NM Long-term compensation charges - 1.8 - 2.2 - NM NM Storm damage charges 3.2 1.5 3.6 - - NM NM Cyber insurance proceeds (10.0) - - - - NM NM Excess compensation related to CDK outage - - 9.2 - - NM NM Adjusted SG&A expenses (358.8)$ (337.2)$ (335.1)$ (336.3)$ (329.1)$ (6%) (9%) Adjusted SG&A expenses as a percentage of gross profit 69.3% 71.6% 69.9% 70.7% 67.0% 230 bps (230) bps Income (loss) before taxes 89.4$ 51.6$ 52.7$ 62.7$ 89.8$ 73% 0% Non-floor plan interest 27.1 27.1 26.5 26.3 25.9 NM NM Depreciation and amortization 34.2 32.8 31.6 31.5 31.2 NM NM Stock-based compensation expense 5.5 5.5 5.9 4.4 6.0 NM NM Impairment charges 0.2 - - 1.0 1.0 NM NM Loss on debt extinguishment - - 0.6 - - Severance and long-term compensation charges - - - 2.2 - NM NM Excess compensation related to CDK outage - 1.8 11.2 - - NM NM Acquisition and disposition-related (gain) loss (3.5) - (0.3) - - NM NM Storm damage charges 3.2 1.5 3.6 - - NM NM Used vehicle inventory valuation adjustment - - - - - NM NM Cyber insurance proceeds (10.0) - - - - NM NM Adjusted EBITDA 146.1$ 120.3$ 131.8$ 128.1$ 153.9$ 21% (5%)
NYSE SAH GAAP Income Statement – Annual Trend – EchoPark Segment 24 NM = Not MeaningfulNote: Gross profit per unit metrics are calculated based on actual unrounded amounts. FY 2024 Better / (Worse) % Change (In millions, except unit, per unit, and per share data) FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 Year-Over-Year Revenues: Total new vehicles -$ 1.0$ 9.2$ 9.0$ -$ (100%) Used vehicles 1,838.0 2,143.8 2,116.8 2,032.6 1,258.2 (14%) Wholesale vehicles 95.8 111.7 227.0 92.9 18.2 (14%) Total vehicles 1,933.8 2,256.5 2,353.0 2,134.5 1,276.4 (14%) Finance, insurance and other, net ("F&I") 194.0 177.9 166.4 193.7 132.1 9% Total revenues 2,127.8 2,434.4 2,463.0 2,345.3 1,419.0 (13%) Gross profit: Total new vehicles - 0.1 1.1 1.1 - (100%) Used vehicles 15.2 (17.1) 4.4 (55.2) (18.0) 189% Wholesale vehicles (1.3) 0.9 4.2 7.4 (0.2) (251%) Total vehicles 13.9 (16.1) 9.7 (46.7) (18.2) 186% Finance, insurance and other, net 194.0 177.9 166.4 193.7 132.1 9% Total gross profit 207.9 161.8 175.1 148.8 114.0 29% SG&A expenses (165.7) (247.0) (269.9) (197.8) (94.9) 33% Impairment charges (2.7) (78.3) (204.9) (0.1) - NM Depreciation and amortization (21.8) (26.6) (24.6) (16.3) (11.0) 18% Operating income (loss) 17.7 (190.1) (324.3) (65.4) 8.1 109% Interest expense, floor plan (14.2) (17.4) (10.6) (5.0) (3.2) 18% Interest expense, other, net (2.7) (3.2) (3.9) (1.7) (0.9) 16% Other income (expense), net - (0.1) - - - NM Income (loss) before taxes 0.8$ (210.8)$ (338.8)$ (72.1)$ 4.0$ 100% Unit sales volume: Retail new vehicles - 11 152 128 - (100%) Used vehicles 69,053 73,676 64,107 77,835 57,161 (6%) Wholesale vehicles 11,059 11,512 11,236 11,667 7,178 (4%) Gross profit per unit ("GPU"): Retail new vehicles N/A 6,934$ 7,510$ 8,303$ N/A NM Total used vehicle and F&I 3,029$ 2,183$ 2,657$ 1,762$ 2,013$ 39%
NYSE SAH Non-GAAP Reconciliation – Annual Trend – EchoPark Segment 25 Note: SG&A expenses as a percentage of gross profit metrics are calculated based on actual unrounded amounts. (In millions) FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 Reported income (loss) before taxes 0.8$ (210.8)$ (338.8)$ (72.1)$ 4.0$ Impairment charges 2.7 78.3 204.9 0.1 - Segment income (loss) 3.5$ (132.5)$ (133.9)$ (72.0)$ 4.0$ Acquisition and disposition-related (gain) loss (2.1) 0.3 - - (5.2) Severance and long-term compensation charges 2.8 5.1 - 6.5 - Loss (gain) on exit of leased dealerships (3.0) 4.3 - - - Used vehicle inventory valuation adjustment - 10.0 - - - Excess compensation related to CDK outage 0.4 - - - - Closed store accrued expenses 2.1 - - - - Adjusted segment income (loss) 3.7$ (112.8)$ (133.9)$ (65.5)$ (1.2)$ Reported SG&A expenses (165.7)$ (247.0)$ (269.9)$ (197.8)$ (94.9)$ Acquisition and disposition-related (gain) loss (2.1) 0.3 - - (5.2) Severance and long-term compensation charges 2.8 5.1 - 6.5 - Loss (gain) on exit of leased dealerships (3.0) 4.3 - - - Excess compensation related to CDK outage 0.4 - - - - Closed store accrued expenses 2.1 - - - - Adjusted SG&A expenses (165.5)$ (237.3)$ (269.9)$ (191.3)$ (100.1)$ Adjusted SG&A expenses as a percentage of gross profit 79.6% 138.2% 154.1% 128.6% 87.6% Income (loss) before taxes 0.8$ (210.8)$ (338.8)$ (72.1)$ 4.1$ Non-floor plan interest 2.6 3.2 3.7 1.7 0.9 Depreciation and amortization 21.6 26.6 24.8 16.4 11.2 Loss (gain) on exit of leased dealerships (3.0) 4.3 - - - Impairment charges 2.7 78.3 204.9 0.1 - Severance and long-term compensation charges 2.9 5.1 - 8.0 - Excess compensation related to CDK outage 0.4 - - - - Acquisition and disposition-related (gain) loss (2.5) 0.3 - (0.4) (5.2) Closed store accrued expenses 2.1 - - - - Used vehicle inventory valuation adjustment - 10.0 - - - Adjusted EBITDA 27.6$ (83.0)$ (105.4)$ (46.3)$ 11.0$ Adjusted EBITDA - Closed Stores (4.9)$ (33.5)$ (35.3)$ (19.3)$ (5.7)$ Adjusted EBITDA - EchoPark Operations (with Holding Company) 32.5 (49.5) (70.1) (27.0) 16.7 Adjusted EBITDA - Total EchoPark Segment 27.6$ (83.0)$ (105.4)$ (46.3)$ 11.0$
NYSE SAH GAAP Income Statement – Quarterly Trend – EchoPark Segment 26 NM = Not MeaningfulNote: Gross profit per unit metrics are calculated based on actual unrounded amounts. Q4 2024 Better / (Worse) % Change (In millions, except unit and per unit data) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Sequential Year-Over-Year Revenues: Used vehicles 436.0$ 470.3$ 448.9$ 482.9$ 492.5$ (7%) (11%) Wholesale vehicles 21.4 23.8 21.9 28.6 22.6 (10%) (5%) Total vehicles 457.4 494.1 470.8 511.5 515.1 (7%) (11%) Finance, insurance and other, net ("F&I") 48.8 50.8 46.5 47.9 41.5 (4%) 18% Total revenues 506.2 544.9 517.3 559.4 556.6 (7%) (9%) Gross profit: Used vehicles 0.8 4.4 4.7 5.3 1.7 (82%) (53%) Wholesale vehicles (0.6) 0.0 (0.1) (0.6) (0.4) (2055%) (50%) Total vehicles 0.2 4.4 4.6 4.7 1.3 (95%) (85%) Finance, insurance and other, net 48.8 50.8 46.5 47.9 41.5 (4%) 18% Total gross profit 49.0 55.2 51.1 52.6 42.8 (11%) 14% SG&A expenses (42.6) (40.2) (37.2) (45.6) (48.0) (6%) 11% Impairment charges (1.3) - (1.4) - (15.7) NM NM Depreciation and amortization (5.4) (5.4) (5.6) (5.5) (6.2) (1%) 13% Operating income (loss) (0.3) 9.6 6.9 1.5 (27.1) (103%) 99% Interest expense, floor plan (3.0) (3.7) (3.8) (3.8) (3.8) 19% 21% Interest expense, other, net (0.7) (0.7) (0.7) (0.7) (0.7) 0% 0% Other income (expense), net 0.1 - 0.1 0.1 - NM NM Income (loss) before taxes (3.9)$ 5.2$ 2.5$ (2.9)$ (31.6)$ (175%) 88% Unit sales volume: Used vehicles 16,674 17,757 16,641 17,981 17,562 (6%) (5%) Wholesale vehicles 2,752 2,720 2,593 2,994 2,621 1% 5% Gross profit per unit ("GPU"): Total used vehicle and F&I 2,974$ 3,111$ 3,078$ 2,955$ 2,461$ (4%) 21%
NYSE SAH Non-GAAP Reconciliation – Quarterly Trend – EchoPark Segment 27 NM = Not MeaningfulNote: SG&A expenses as a percentage of gross profit metrics are calculated based on actual unrounded amounts. Q4 2024 Better / (Worse) % Change (In millions) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Sequential Year-Over-Year Reported income (loss) before taxes (3.9)$ 5.2$ 2.5$ (2.9)$ (31.6)$ (175%) 88% Impairment charges 1.3 - 1.4 - 15.7 NM NM Segment income (loss) (2.6)$ 5.2$ 3.9$ (2.9)$ (15.9)$ (150%) 84% Acquisition and disposition-related (gain) loss 0.8 (2.3) (0.6) - - NM NM Loss (gain) on exit of leased dealerships - - (3.0) - - NM NM Severance and long-term compensation charges - - 0.7 2.1 - NM NM Closed store accrued expenses - - - 2.1 - NM NM Excess compensation related to CDK outage - - 0.4 - - NM NM Adjusted segment income (loss) (1.8)$ 2.9$ 1.4$ 1.3$ (15.9)$ (162%) 89% Reported gross profit 49.0$ 55.2$ 51.1$ 52.6$ 42.8$ (11%) 14% Reported SG&A expenses (42.6)$ (40.2)$ (37.2)$ (45.6)$ (48.0)$ (6%) 11% Acquisition and disposition-related (gain) loss 0.8 (2.3) (0.6) - - NM NM Loss (gain) on exit of leased dealerships - - (3.0) - - NM NM Severance and long-term compensation charges - - 0.7 2.1 - NM NM Closed store accrued expenses - - - 2.1 - NM NM Excess compensation related to CDK outage - - 0.4 - - NM NM Adjusted SG&A expenses (41.8)$ (42.5)$ (39.7)$ (41.4)$ (48.0)$ 2% 13% Adjusted SG&A expenses as a percentage of gross profit 85.5% 77.1% 77.7% 78.6% 112.3% (840) bps 2,680 bps Income (loss) before taxes (3.9)$ 5.2$ 2.5$ (2.9)$ (31.6)$ (175%) 88% Non-floor plan interest 0.6 0.7 0.7 0.6 0.7 NM NM Depreciation and amortization 5.4 5.3 5.4 5.4 6.1 NM NM Loss (gain) on exit of leased dealerships - - (3.0) - - NM NM Impairment charges 1.3 - 1.4 - 15.7 NM NM Severance and long-term compensation charges - - 0.8 2.1 - Excess compensation related to CDK outage - - 0.4 - - NM NM Acquisition and disposition-related (gain) loss 0.8 (2.3) (1.0) - - NM NM Closed store accrued expenses - - - 2.1 - NM NM Adjusted EBITDA 4.2$ 8.9$ 7.2$ 7.3$ (9.1)$ (53%) 146% Adjusted EBITDA - Closed Stores (0.7)$ (0.3)$ (1.8)$ (2.0)$ (2.8)$ (133%) 75% Adjusted EBITDA - EchoPark Operations (with Holding Company) 4.9 9.2 9.0 9.3 (6.3) (47%) 178% Adjusted EBITDA - Total EchoPark Segment 4.2$ 8.9$ 7.2$ 7.3$ (9.1)$ (53%) 146%
NYSE SAH GAAP Income Statement – Annual Trend – Powersports Segment 28 NM = Not MeaningfulNote: Gross profit per unit metrics are calculated based on actual unrounded amounts. FY 2024 Better / (Worse) % Change (In millions, except unit and per unit data) FY 2024 FY 2023 FY 2022 Year-Over-Year Revenues: Retail new vehicles 82.0$ 88.6$ 31.8$ (8%) Used vehicles 22.3 19.5 7.1 14% Wholesale vehicles 2.3 2.6 0.3 (6%) Total vehicles 106.6 110.7 39.2 (4%) Parts, service and collision repair 43.6 45.3 11.7 (4%) Finance, insurance and other, net ("F&I") 7.1 7.2 2.6 (2%) Total revenues 157.3 163.2 53.5 (4%) Gross profit: Retail new vehicles 11.5 16.6 6.3 (31%) Used vehicles 5.3 5.4 2.0 (1%) Wholesale vehicles (0.3) (0.2) 0.1 (18%) Total vehicles 16.5 21.8 8.4 (24%) Parts, service and collision repair 20.1 21.3 5.8 (6%) Finance, insurance and other, net 7.1 7.2 2.6 (2%) Total gross profit 43.7 50.3 16.8 (13%) SG&A expenses (35.9) (38.9) (12.3) 8% Impairment charges - - - NM Depreciation and amortization (4.2) (3.4) (1.0) (25%) Operating income (loss) 3.6 8.0 3.5 (56%) Interest expense, floor plan (2.1) (0.6) - (208%) Interest expense, other, net (2.6) (1.7) (1.0) (52%) Other income (expense), net - - 0.2 NM Income (loss) before taxes (1.1)$ 5.7$ 2.7$ (119%) Unit sales volume: Retail new vehicles 4,244 4,842 1,592 (12%) Used vehicles 2,228 2,261 590 (1%) Wholesale vehicles 146 216 35 (32%) Gross profit per unit ("GPU"): Retail new vehicles 2,713$ 3,435$ 3,973$ (21%) Used vehicles 2,397$ 2,394$ 3,349$ 0% F&I 1,092$ 1,017$ 1,205$ 7%
NYSE SAH Non-GAAP Reconciliation – Annual Trend – Powersports Segment 29 Note: SG&A expenses as a percentage of gross profit metrics are calculated based on actual unrounded amounts. (In millions) FY 2024 FY 2023 FY 2022 Reported income (loss) before taxes (1.1)$ 5.7$ 2.7$ Impairment charges - - - Segment income (loss) (1.1)$ 5.7$ 2.7$ Long-term compensation charges 0.5 - - Adjusted segment income (loss) (0.6)$ 5.7$ 2.7$ Reported SG&A expenses (35.9)$ (38.9)$ (12.3)$ Long-term compensation charges 0.5 - - Adjusted SG&A expenses (35.4)$ (38.9)$ (12.3)$ Adjusted SG&A expenses as a percentage of gross profit 80.9% 77.2% 73.4% Income (loss) before taxes (1.1) 5.7 2.7 Non-floor plan interest 2.6 1.7 1.0 Depreciation and amortization 4.3 3.4 0.9 Severance and long-term compensation charges 0.5 - - Adjusted EBITDA 6.3$ 10.8$ 4.6$
NYSE SAH GAAP Income Statement – Quarterly Trend – Powersports Segment 30 NM = Not MeaningfulNote: Gross profit per unit metrics are calculated based on actual unrounded amounts. Q4 2024 Better / (Worse) % Change (In millions, except unit and per unit data) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Sequential Year-Over-Year Revenues: Retail new vehicles 17.5$ 26.9$ 21.7$ 15.9$ 16.1$ (35%) 9% Used vehicles 4.7 9.0 5.3 3.4 2.4 (48%) 96% Wholesale vehicles 0.1 1.1 0.9 0.1 0.7 NM NM Total vehicles 22.3 37.0 27.9 19.4 19.2 (40%) 16% Parts, service and collision repair 7.0 20.1 9.7 6.8 6.7 (65%) 4% Finance, insurance and other, net ("F&I") 1.3 2.3 2.0 1.5 1.3 (44%) 0% Total revenues 30.6 59.4 39.6 27.7 27.2 (48%) 13% Gross profit: Retail new vehicles 2.2 4.1 2.9 2.3 2.3 (47%) (4%) Used vehicles 1.0 2.2 1.3 0.9 0.7 (54%) 43% Wholesale vehicles (0.1) (0.1) (0.1) - (0.1) NM NM Total vehicles 3.1 6.2 4.1 3.2 2.9 (50%) 7% Parts, service and collision repair 3.1 9.2 4.6 3.1 2.8 (66%) 11% Finance, insurance and other, net 1.3 2.3 2.0 1.5 1.3 (44%) 0% Total gross profit 7.5 17.7 10.7 7.8 7.0 (58%) 7% SG&A expenses (8.5) (11.3) (7.9) (8.1) (9.2) 25% 8% Impairment charges - - - - - NM NM Depreciation and amortization (1.2) (1.1) (1.0) (1.0) (1.0) (7%) (20%) Operating income (loss) (2.2) 5.3 1.8 (1.3) (3.2) (142%) 31% Interest expense, floor plan (0.5) (0.6) (0.5) (0.5) - 21% 100% Interest expense, other, net (0.7) (0.6) (0.8) (0.5) (0.2) (15%) (250%) Other income (expense), net - (0.1) - - (0.1) NM NM Income (loss) before taxes (3.4)$ 4.0$ 0.5$ (2.3)$ (3.5)$ (184%) 3% Unit sales volume: Retail new vehicles 940 1,266 1,193 845 948 (26%) (1%) Used vehicles 520 777 522 409 289 (33%) 80% Wholesale vehicles 16 99 18 13 66 NM NM Gross profit per unit ("GPU"): Retail new vehicles 2,338$ 3,249$ 2,466$ 2,676$ 2,429$ (28%) (4%) Used vehicles 1,940$ 2,798$ 2,423$ 2,185$ 2,307$ (31%) (16%) F&I 868$ 1,136$ 1,153$ 1,197$ 1,066$ (24%) (19%)
NYSE SAH Non-GAAP Reconciliation – Quarterly Trend – Powersports Segment 31 NM = Not MeaningfulNote: SG&A expenses as a percentage of gross profit metrics are calculated based on actual unrounded amounts. Q4 2024 Better / (Worse) % Change (In millions) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Sequential Year-Over-Year Reported income (loss) before taxes (3.4)$ 4.0$ 0.5$ (2.3)$ (3.5)$ (184%) 3% Impairment charges - - - - - NM NM Segment income (loss) (3.4)$ 4.0$ 0.5$ (2.3)$ (3.5)$ (184%) 3% Long-term compensation charges 0.5 - - - - NM NM Adjusted segment income (loss) (2.9)$ 4.0$ 0.5$ (2.3)$ (3.5)$ (184%) 3% Reported SG&A expenses (8.5)$ (11.3)$ (7.9)$ (8.1)$ (9.2)$ 25% 8% Long-term compensation charges 0.5 - - - - NM NM Adjusted SG&A expenses (8.0)$ (11.3)$ (7.9)$ (8.1)$ (9.2)$ 29% 12% Adjusted SG&A expenses as a percentage of gross profit 106.6% 63.7% 73.7% 104.8% 131.6% (4,290) bps 2,500 bps Income (loss) before taxes (3.4)$ 4.0$ 0.5$ (2.3)$ (3.5)$ (184%) 3% Non-floor plan interest 0.7 0.6 0.8 0.5 0.1 NM NM Depreciation and amortization 1.2 1.2 1.0 1.0 1.0 NM NM Long-term compensation charges 0.5 - - - - NM NM Adjusted EBITDA (1.0)$ 5.8$ 2.3$ (0.8)$ (2.4)$ (117%) (58%)
Investor Relations Contact: Danny Wieland, Vice President, Investor Relations & Financial Reporting Sonic Automotive Inc. (NYSE: SAH) Email: [email protected] Investor Relations Website: ir.sonicautomotive.com