8-K
SONIC AUTOMOTIVE INC (SAH)
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): October 27, 2022
____________________________________
SONIC AUTOMOTIVE, INC.
(Exact name of registrant as specified in its charter)
____________________________________
Delaware
(State or other jurisdiction
of incorporation)1-1339556-2010790(CommissionFile Number)(IRS EmployerIdentification No.)
| 4401 Colwick Road | |||
|---|---|---|---|
| Charlotte, | North Carolina | 28211 | |
| (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 |
|---|---|---|
| Class A Common Stock, par value $0.01 per share | SAH | New York Stock Exchange |
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 October 27, 2022, Sonic Automotive, Inc. (the “Company”) issued a press release announcing its financial results for its fiscal third quarter ended September 30, 2022 (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 October 27, 2022, 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<br><br>No. | Description |
|---|---|
| 99.1 | Press Release of Sonic Automotive, Inc., dated October 27, 2022. |
| 99.2 | Earnings Call Presentation Materials. |
| 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. | ||
|---|---|---|
| October 27, 2022 | By: | /s/ STEPHEN K. COSS |
| Stephen K. Coss | ||
| Senior Vice President and General Counsel |
Document
Exhibit 99.1
Sonic Automotive Reports Record Third Quarter Results
Record Third Quarter Revenues and Gross Profit Drove Record Third Quarter Net Income
During the Third Quarter, Sonic Repurchased 3.1 Million Shares of its Class A Common Stock, or 8% of Total Shares Outstanding
Year-to-Date, Sonic Repurchased 5.2 Million Shares of its Class A Common Stock, or 13% of Total Shares Outstanding
CHARLOTTE, N.C. – October 27, 2022 – Sonic Automotive, Inc. (“Sonic Automotive,” “Sonic” or the “Company”) (NYSE:SAH), one of the nation’s largest automotive retailers, today reported financial results for the third quarter and nine months ended September 30, 2022.
Key Highlights
•Record third quarter revenues of $3.4 billion, up 12% year-over-year; record third quarter gross profit of $580.7 million, up 23% year-over-year
•Record third quarter net income of $87.3 million ($2.23 per diluted share)
•Selling, general and administrative (“SG&A”) expenses as a percentage of gross profit of 68.7% (62.4% on a Franchised Dealerships Segment basis, an increase of 220 basis points year-over-year)
•Record third quarter total Finance & Insurance (“F&I”) gross profit per retail unit of $2,477, up 5% year-over-year
•EchoPark revenues of $607.8 million, down 8% year-over-year; record third quarter EchoPark gross profit of $48.6 million, up 88% year-over-year
•During the third quarter of 2022, Sonic repurchased approximately 3.1 million shares of its Class A Common Stock (or 8% of total Class A and Class B shares outstanding as of June 30, 2022) for an aggregate purchase price of approximately $151.5 million, resulting in $481.0 million of remaining share repurchase authorization
•During the nine months ended September 30, 2022, Sonic repurchased approximately 5.2 million shares of its Class A Common Stock (or 13% of total Class A and Class B shares outstanding as of December 31, 2021) for an aggregate purchase price of approximately $245.2 million
•Sonic's Board of Directors approved a 12% increase to the Company's quarterly cash dividend, to $0.28 per share, payable on January 13, 2023 to all stockholders of record on December 15, 2022
Commentary
David Smith, Chairman and Chief Executive Officer of Sonic Automotive, stated, “Our quarterly results reflect another period of solid financial performance, including record third quarter revenues, gross profit and earnings per share. During the third quarter, we continued to see persistent consumer demand for new vehicles and sustained growth in our parts and service business, driving all-time record Fixed Operations gross profit. These trends have carried over from the first half of 2022, in spite of a challenging used vehicle environment and macroeconomic headwinds such as inflation, rising interest rates, and ongoing global new vehicle supply chain constraints. We believe Sonic’s ability to successfully navigate this environment demonstrates the strength of our diversified model and our unwavering commitment to generating long-term value for our key stakeholders.”
Jeff Dyke, President of Sonic Automotive, commented, “In the third quarter, we continued to strategically expand EchoPark’s nationwide distribution network. This expansion has been achieved both by growing geographically and through the launch of our new ecommerce platform, which was successfully rolled out this past June to 100% of our nationwide traffic at EchoPark.com. For the third quarter, omnichannel sales through our new ecommerce platform accounted for 31% of EchoPark’s retail unit sales volume, compared to 19% last quarter, as more guests continued to utilize our enhanced, omnichannel purchase experience. In addition to our growing digital presence, our new store openings during the quarter expanded the EchoPark Automotive brand reach to over 50% of the U.S. population. We remain committed to the expansion of the EchoPark Automotive brand and, with our progress to date, we remain well on track to reach 90% of the U.S. population by 2025.”
Heath Byrd, Chief Financial Officer of Sonic Automotive, added, “Despite supply chain challenges and today’s economic climate, our teammates continued to drive strong revenue and earnings performance throughout our organization. At the same time, our team has maintained its focus on cash flow generation and proactively managing expenses. We have made great progress related to the integration of the RFJ Auto acquisition and expect we will achieve further earnings synergies in future periods. Based on our strong financial performance, solid cash position, ample sources of liquidity and our present macroeconomic outlook, we believe Sonic remains well-positioned to build long-term value and deliver returns to our stockholders.”
Third Quarter 2022 Segment Highlights
The financial measures discussed below are results for the third quarter of 2022 with comparisons made to the third quarter of 2021, unless otherwise noted.
•Franchised Dealerships Segment operating results include:
•Same store revenues up 3%; same store gross profit up 5%
•Same store retail new vehicle unit sales volume down 6%; same store retail new vehicle gross profit per unit up 28%, to $6,571
•Same store retail used vehicle unit sales volume down 12%; same store retail used vehicle gross profit per unit down 9%, to $1,669
•Same store parts, service and collision repair gross profit up 10%; same store customer pay gross profit up 12%; same store warranty gross profit up 7%; same store gross margin down 30 basis points, to 49.9%
•Same store F&I gross profit down 5%; all-time record quarterly reported Franchised Dealerships Segment F&I gross profit per retail unit of $2,473, up 7%
•On a trailing quarter cost of sales basis, Franchised Dealerships Segment new vehicle inventory had approximately 18 days’ supply, and Franchised Dealerships Segment used vehicle inventory had approximately 31 days’ supply
•EchoPark Segment operating results include:
•EchoPark revenues of $607.8 million, down 8% year-over-year; record third quarter EchoPark gross profit of $48.6 million, up 88% year-over-year
•EchoPark retail used vehicle unit sales volume of 15,422, down 27% year-over-year
•EchoPark retail used vehicle unit sales volume was comprised of 81% 1-4-year old vehicles and 19% 5-plus-year old vehicles
•EchoPark segment loss of $29.9 million and adjusted EBITDA* loss of $21.4 million (including market expansion-related losses of $6.3 million and $5.7 million, respectively)
•On a trailing quarter cost of sales basis, EchoPark Segment used vehicle inventory had approximately 57 days’ supply (40 days for EchoPark-branded locations, excluding locations opened during the third quarter)
* Please refer to the discussion and reconciliation of Non-GAAP Financial Measures below.
Dividend
Sonic’s Board of Directors approved a 12% increase to the Company's quarterly cash dividend, to $0.28 per share, payable on January 13, 2023 to all stockholders of record on December 15, 2022.
Third Quarter 2022 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.
For telephone access to this conference call, please register in advance using this link:
https://www.netroadshow.com/events/login?show=893f08a9&confId=42803
After registering, you will receive a confirmation that includes dial-in numbers and a unique conference call access code and PIN for entry. Registration remains available through the live call; however, to ensure you are connected for the full call we suggest registering at least 10 minutes before the start of the call.
A conference call replay will be available following the call for 14 days at ir.sonicautomotive.com.
About Sonic Automotive
Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, North Carolina, is on a quest to become the most valuable automotive retailer and service brand in America. Our Company culture thrives on creating, innovating, and providing industry-leading guest experiences, driven by strategic investments in technology, teammates, and ideas that ultimately fulfill ownership dreams, enrich lives, and deliver happiness to our guests and teammates. As one of the largest automotive retailers in America, we are committed to delivering on this goal while pursuing expansive growth and taking progressive measures to be the leader in this category. Our new platforms, programs, and people are set to drive the next generation of automotive experiences. More information about Sonic Automotive can be found at www.sonicautomotive.com and ir.sonicautomotive.com.
About EchoPark Automotive
EchoPark Automotive is one of the fastest growing and most comprehensive retailers of nearly new pre-owned vehicles in America today. Our rapid growth plan is expected to bring our unique business model to 90% of the U.S. population by 2025, utilizing one of the most innovative technology-enabled sales strategies in our industry. Our approach provides a personalized and proven guest-centric buying process that consistently delivers award-winning guest experiences and superior value to car buyers nationwide, with savings of up to $3,000 versus the competition. Consumers have responded by putting EchoPark at number one in products, sales, and service based on Google Reviews between April 2021 through April 2022, while receiving the 2021 Consumer Satisfaction Award from DealerRater. EchoPark’s nationwide growth will continue to leverage the unique and preferred Experience Centers in-market with a best-in-class shopping and online buying tool. 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 EchoPark's future U.S. population coverage and future earnings synergies from the RFJ Auto acquisition. There are many factors that affect management’s views about future events and trends of the Company’s business. These factors involve risks and uncertainties that could cause actual results or trends to differ materially from management’s views, including, without limitation, economic conditions in the markets in which we operate, supply chain disruptions and manufacturing delays, labor shortages, the impacts of inflation and increases in interest rates, new and used vehicle industry sales volume, future levels of consumer demand for new and used vehicles, anticipated future growth in our EchoPark Segment, the success of our operational strategies, the rate and timing of overall economic expansion or contraction, the integration of the RFJ Auto acquisition, the effect of the COVID-19 pandemic and related government-imposed restrictions on operations, and the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and other reports and information filed with the United States Securities and Exchange Commission (the “SEC”). The Company does not undertake any obligation to update forward-looking information, except as required under federal securities laws and the rules and regulations of the SEC.
Non-GAAP Financial Measures
This press release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as adjusted EBITDA. As required by SEC rules, the Company has provided reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures in the schedules included in this press release. The Company believes that these non-GAAP financial measures improve the transparency of the Company’s disclosures and provide a meaningful presentation of the Company’s results.
Company Contacts
Investor Inquiries:
Heath Byrd, Executive Vice President and Chief Financial Officer (704) 566-2400
Danny Wieland, Vice President, Investor Relations & Financial Reporting (704) 927-3462
ir@sonicautomotive.com
Press Inquiries:
Danielle DeVoren / Joshua Greenwald
212-896-1272 / 646-379-7971
ddevoren@kcsa.com/jgreenwald@kcsa.com
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Results of Operations - Consolidated
| Three Months Ended<br>September 30, | Better / (Worse) | Nine Months Ended<br>September 30, | Better / (Worse) | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||
| (In millions, except per share amounts) | ||||||||||||
| Revenues: | ||||||||||||
| Retail new vehicles | $ | 1,373.1 | $ | 1,128.0 | 22 | % | $ | 4,068.7 | $ | 3,715.2 | 10 | % |
| Fleet new vehicles | 32.0 | 18.9 | 69 | % | 70.0 | 50.9 | 38 | % | ||||
| Total new vehicles | 1,405.1 | 1,146.9 | 23 | % | 4,138.7 | 3,766.1 | 10 | % | ||||
| Used vehicles | 1,358.0 | 1,324.8 | 3 | % | 4,178.3 | 3,708.9 | 13 | % | ||||
| Wholesale vehicles | 114.7 | 97.1 | 18 | % | 404.8 | 256.7 | 58 | % | ||||
| Total vehicles | 2,877.8 | 2,568.8 | 12 | % | 8,721.8 | 7,731.7 | 13 | % | ||||
| Parts, service and collision repair | 404.7 | 339.9 | 19 | % | 1,183.4 | 994.1 | 19 | % | ||||
| Finance, insurance and other, net | 165.6 | 164.1 | 1 | % | 505.3 | 486.1 | 4 | % | ||||
| Total revenues | 3,448.1 | 3,072.8 | 12 | % | 10,410.5 | 9,211.9 | 13 | % | ||||
| Cost of sales: | ||||||||||||
| Retail new vehicles | (1,209.6) | (1,012.9) | (19) | % | (3,569.2) | (3,412.8) | (5) | % | ||||
| Fleet new vehicles | (30.7) | (18.6) | (65) | % | (66.9) | (50.0) | (34) | % | ||||
| Total new vehicles | (1,240.3) | (1,031.5) | (20) | % | (3,636.1) | (3,462.8) | (5) | % | ||||
| Used vehicles | (1,306.6) | (1,304.6) | — | % | (4,031.6) | (3,623.1) | (11) | % | ||||
| Wholesale vehicles | (116.8) | (95.9) | (22) | % | (404.2) | (250.1) | (62) | % | ||||
| Total vehicles | (2,663.7) | (2,432.0) | (10) | % | (8,071.9) | (7,336.0) | (10) | % | ||||
| Parts, service and collision repair | (203.7) | (168.8) | (21) | % | (597.7) | (492.2) | (21) | % | ||||
| Total cost of sales | (2,867.4) | (2,600.8) | (10) | % | (8,669.6) | (7,828.2) | (11) | % | ||||
| Gross profit | 580.7 | 472.0 | 23 | % | 1,740.9 | 1,383.7 | 26 | % | ||||
| Selling, general and administrative expenses | (399.0) | (321.4) | (24) | % | (1,188.8) | (931.3) | (28) | % | ||||
| Depreciation and amortization | (32.8) | (25.2) | (30) | % | (94.0) | (73.7) | (28) | % | ||||
| Operating income (loss) | 148.9 | 125.4 | 19 | % | 458.1 | 378.7 | 21 | % | ||||
| Other income (expense): | ||||||||||||
| Interest expense, floor plan | (9.6) | (3.3) | (191) | % | (20.6) | (12.8) | (61) | % | ||||
| Interest expense, other, net | (22.9) | (9.8) | (134) | % | (65.1) | (30.2) | (116) | % | ||||
| Other income (expense), net | — | (0.1) | 100 | % | 0.1 | 0.1 | 64 | % | ||||
| Total other income (expense) | (32.5) | (13.2) | (146) | % | (85.6) | (42.9) | (100) | % | ||||
| Income (loss) from continuing operations before taxes | 116.4 | 112.2 | 4 | % | 372.5 | 335.8 | 11 | % | ||||
| Provision for income taxes for continuing operations - benefit (expense) | (29.1) | (27.5) | (6) | % | (93.1) | (83.4) | (12) | % | ||||
| Income (loss) from continuing operations | 87.3 | 84.7 | 3 | % | 279.4 | 252.4 | 11 | % | ||||
| Discontinued operations: | ||||||||||||
| Income (loss) from discontinued operations before taxes | — | (0.3) | 100 | % | — | 0.2 | (100) | % | ||||
| Provision for income taxes for discontinued operations - benefit (expense) | — | 0.1 | (100) | % | — | — | — | % | ||||
| Income (loss) from discontinued operations | — | (0.2) | 100 | % | — | 0.2 | (100) | % | ||||
| Net income (loss) | $ | 87.3 | $ | 84.5 | 3 | % | $ | 279.4 | $ | 252.6 | 11 | % |
| Basic earnings (loss) per common share: | ||||||||||||
| Earnings (loss) per share from continuing operations | $ | 2.28 | $ | 2.04 | 12 | % | $ | 7.09 | $ | 6.07 | 17 | % |
| Earnings (loss) per share from discontinued operations | — | (0.01) | 100 | % | — | 0.01 | (100) | % | ||||
| Earnings (loss) per common share | $ | 2.28 | $ | 2.03 | 12 | % | $ | 7.09 | $ | 6.08 | 17 | % |
| Weighted-average common shares outstanding | 38.3 | 41.6 | 8 | % | 39.4 | 41.6 | 5 | % | ||||
| Diluted earnings (loss) per common share: | ||||||||||||
| Earnings (loss) per share from continuing operations | $ | 2.23 | $ | 1.96 | 14 | % | $ | 6.90 | $ | 5.81 | 19 | % |
| Earnings (loss) per share from discontinued operations | — | (0.01) | 100 | % | — | 0.01 | (100) | % | ||||
| Earnings (loss) per common share | $ | 2.23 | $ | 1.95 | 14 | % | $ | 6.90 | $ | 5.82 | 19 | % |
| Weighted-average common shares outstanding | 39.2 | 43.3 | 9 | % | 40.5 | 43.4 | 7 | % | ||||
| Dividends declared per common share | $ | 0.25 | $ | 0.12 | 108 | % | $ | 0.62 | $ | 0.34 | 82 | % |
NM = Not Meaningful
Franchised Dealerships Segment - Reported
| Three Months Ended<br>September 30, | Better / (Worse) | Nine Months Ended<br>September 30, | Better / (Worse) | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||
| (In millions, except unit and per unit data) | ||||||||||||
| Revenues: | ||||||||||||
| Retail new vehicles | $ | 1,359.6 | $ | 1,124.5 | 21 | % | $ | 4,047.1 | $ | 3,710.8 | 9 | % |
| Fleet new vehicles | 32.0 | 18.9 | 69 | % | 70.0 | 50.9 | 38 | % | ||||
| Total new vehicles | 1,391.6 | 1,143.4 | 22 | % | 4,117.1 | 3,761.7 | 9 | % | ||||
| Used vehicles | 842.4 | 750.3 | 12 | % | 2,568.1 | 2,173.3 | 18 | % | ||||
| Wholesale vehicles | 75.8 | 64.1 | 18 | % | 261.2 | 183.2 | 43 | % | ||||
| Total vehicles | 2,309.8 | 1,957.8 | 18 | % | 6,946.4 | 6,118.2 | 14 | % | ||||
| Parts, service and collision repair | 404.7 | 339.9 | 19 | % | 1,183.4 | 994.1 | 19 | % | ||||
| Finance, insurance and other, net | 125.8 | 111.8 | 13 | % | 382.1 | 333.5 | 15 | % | ||||
| Total revenues | 2,840.3 | 2,409.5 | 18 | % | 8,511.9 | 7,445.8 | 14 | % | ||||
| Gross Profit: | ||||||||||||
| Retail new vehicles | 160.7 | 114.9 | 40 | % | 494.5 | 302.1 | 64 | % | ||||
| Fleet new vehicles | 1.3 | 0.3 | 333 | % | 3.1 | 0.9 | 244 | % | ||||
| Total new vehicles | 162.0 | 115.2 | 41 | % | 497.6 | 303.0 | 64 | % | ||||
| Used vehicles | 45.4 | 50.1 | (9) | % | 136.0 | 137.3 | (1) | % | ||||
| Wholesale vehicles | (2.1) | (2.0) | (5) | % | (3.0) | 0.2 | NM | |||||
| Total vehicles | 205.3 | 163.3 | 26 | % | 630.6 | 440.4 | 43 | % | ||||
| Parts, service and collision repair | 201.0 | 171.1 | 17 | % | 585.7 | 501.9 | 17 | % | ||||
| Finance, insurance and other, net | 125.8 | 111.8 | 13 | % | 382.1 | 333.5 | 15 | % | ||||
| Total gross profit | 532.1 | 446.2 | 19 | % | 1,598.4 | 1,275.8 | 25 | % | ||||
| Selling, general and administrative expenses | (332.0) | (268.4) | (24) | % | (974.9) | (794.1) | (23) | % | ||||
| Depreciation and amortization | (25.8) | (21.2) | (22) | % | (75.8) | (62.3) | (22) | % | ||||
| Operating income (loss) | 174.3 | 156.6 | 11 | % | 547.7 | 419.4 | 31 | % | ||||
| Other income (expense): | ||||||||||||
| Interest expense, floor plan | (6.6) | (2.0) | (230) | % | (13.9) | (9.2) | (50) | % | ||||
| Interest expense, other, net | (21.4) | (9.5) | (125) | % | (61.7) | (29.2) | (112) | % | ||||
| Other income (expense), net | — | — | — | % | 0.1 | — | NM | |||||
| Total other income (expense) | (28.0) | (11.5) | (143) | % | (75.5) | (38.3) | (97) | % | ||||
| Income (loss) before taxes | 146.3 | 145.1 | 1 | % | 472.2 | 381.1 | 24 | % | ||||
| Add: impairment charges | — | — | NM | — | — | NM | ||||||
| Segment income (loss) | $ | 146.3 | $ | 145.1 | 1 | % | $ | 472.2 | $ | 381.1 | 24 | % |
| Unit Sales Volume: | ||||||||||||
| Retail new vehicles | 24,241 | 22,280 | 9 | % | 73,185 | 76,340 | (4) | % | ||||
| Fleet new vehicles | 672 | 511 | 32 | % | 1,454 | 1,297 | 12 | % | ||||
| Total new vehicles | 24,913 | 22,791 | 9 | % | 74,639 | 77,637 | (4) | % | ||||
| Used vehicles | 26,647 | 26,274 | 1 | % | 81,881 | 82,060 | — | % | ||||
| Wholesale vehicles | 5,813 | 6,119 | (5) | % | 18,436 | 19,704 | (6) | % | ||||
| Retail new & used vehicles | 50,888 | 48,554 | 5 | % | 155,066 | 158,400 | (2) | % | ||||
| Used-to-New Ratio | 1.07 | 1.15 | (7) | % | 1.10 | 1.06 | 4 | % | ||||
| Gross Profit Per Unit: | ||||||||||||
| Retail new vehicles | $ | 6,627 | $ | 5,153 | 29 | % | $ | 6,757 | $ | 3,956 | 71 | % |
| Fleet new vehicles | $ | 1,955 | $ | 773 | 153 | % | $ | 2,132 | $ | 745 | 186 | % |
| Total new vehicles | $ | 6,501 | $ | 5,055 | 29 | % | $ | 6,667 | $ | 3,903 | 71 | % |
| Used vehicles | $ | 1,704 | $ | 1,907 | (11) | % | $ | 1,661 | $ | 1,673 | (1) | % |
| Finance, insurance and other, net | $ | 2,473 | $ | 2,303 | 7 | % | $ | 2,464 | $ | 2,105 | 17 | % |
NM = Not Meaningful
Franchised Dealerships Segment - Same Store
| Three Months Ended<br>September 30, | Better / (Worse) | Nine Months Ended<br>September 30, | Better / (Worse) | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||
| (In millions, except unit and per unit data) | ||||||||||||
| Revenues: | ||||||||||||
| Retail new vehicles | $ | 1,177.4 | $ | 1,121.3 | 5 | % | $ | 3,413.5 | $ | 3,699.4 | (8) | % |
| Fleet new vehicles | 27.0 | 18.9 | 43 | % | 57.9 | 51.0 | 14 | % | ||||
| Total new vehicles | 1,204.4 | 1,140.2 | 6 | % | 3,471.4 | 3,750.4 | (7) | % | ||||
| Used vehicles | 736.4 | 747.4 | (1) | % | 2,210.9 | 2,165.2 | 2 | % | ||||
| Wholesale vehicles | 58.8 | 63.9 | (8) | % | 196.9 | 182.7 | 8 | % | ||||
| Total vehicles | 1,999.6 | 1,951.5 | 2 | % | 5,879.2 | 6,098.3 | (4) | % | ||||
| Parts, service and collision repair | 373.6 | 338.7 | 10 | % | 1,080.5 | 990.5 | 9 | % | ||||
| Finance, insurance and other, net | 105.6 | 111.2 | (5) | % | 314.6 | 332.2 | (5) | % | ||||
| Total revenues | 2,478.8 | 2,401.4 | 3 | % | 7,274.3 | 7,421.0 | (2) | % | ||||
| Gross Profit: | ||||||||||||
| Retail new vehicles | 136.9 | 114.3 | 20 | % | 413.8 | 300.6 | 38 | % | ||||
| Fleet new vehicles | 1.0 | 0.4 | 150 | % | 2.4 | 0.9 | 167 | % | ||||
| Total new vehicles | 137.9 | 114.7 | 21 | % | 416.2 | 301.5 | 38 | % | ||||
| Used vehicles | 38.5 | 48.2 | (20) | % | 115.9 | 137.2 | (16) | % | ||||
| Wholesale vehicles | (1.7) | 0.8 | (313) | % | (2.3) | 5.8 | (140) | % | ||||
| Total vehicles | 174.7 | 163.7 | 7 | % | 529.8 | 444.5 | 19 | % | ||||
| Parts, service and collision repair | 186.5 | 170.2 | 10 | % | 537.5 | 498.8 | 8 | % | ||||
| Finance, insurance and other, net | 105.6 | 111.2 | (5) | % | 314.6 | 332.2 | (5) | % | ||||
| Total gross profit | $ | 466.8 | $ | 445.1 | 5 | % | $ | 1,381.9 | $ | 1,275.5 | 8 | % |
| Unit Sales Volume: | ||||||||||||
| Retail new vehicles | 20,829 | 22,208 | (6) | % | 61,247 | 76,073 | (19) | % | ||||
| Fleet new vehicles | 574 | 511 | 12 | % | 1,232 | 1,297 | (5) | % | ||||
| Total new vehicles | 21,403 | 22,719 | (6) | % | 62,479 | 77,370 | (19) | % | ||||
| Used vehicles | 23,043 | 26,164 | (12) | % | 69,315 | 81,713 | (15) | % | ||||
| Wholesale vehicles | 4,583 | 6,102 | (25) | % | 14,258 | 19,634 | (27) | % | ||||
| Retail new & used vehicles | 43,872 | 48,372 | (9) | % | 130,562 | 157,786 | (17) | % | ||||
| Used-to-New Ratio | 1.08 | 1.15 | (7) | % | 1.11 | 1.06 | 5 | % | ||||
| Gross Profit Per Unit: | ||||||||||||
| Retail new vehicles | $ | 6,571 | $ | 5,147 | 28 | % | $ | 6,756 | $ | 3,951 | 71 | % |
| Fleet new vehicles | $ | 1,782 | $ | 773 | 131 | % | $ | 1,968 | $ | 745 | 164 | % |
| New vehicles | $ | 6,443 | $ | 5,049 | 28 | % | $ | 6,661 | $ | 3,897 | 71 | % |
| Used vehicles | $ | 1,669 | $ | 1,844 | (9) | % | $ | 1,672 | $ | 1,679 | — | % |
| Finance, insurance and other, net | $ | 2,406 | $ | 2,300 | 5 | % | $ | 2,410 | $ | 2,106 | 14 | % |
NM = Not Meaningful
Note: All currently operating franchised dealership stores are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition.
EchoPark Segment - Reported
| Three Months Ended<br>September 30, | Better / (Worse) | Nine Months Ended<br>September 30, | Better / (Worse) | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||
| (In millions, except unit and per unit data) | ||||||||||||
| Revenues: | ||||||||||||
| Retail new vehicles | $ | 13.5 | $ | 3.5 | 286 | % | $ | 21.6 | $ | 4.4 | 391 | % |
| Used vehicles | 515.6 | 574.5 | (10) | % | 1,610.2 | 1,535.6 | 5 | % | ||||
| Wholesale vehicles | 38.9 | 33.0 | 18 | % | 143.6 | 73.5 | 95 | % | ||||
| Total vehicles | 568.0 | 611.0 | (7) | % | 1,775.4 | 1,613.5 | 10 | % | ||||
| Finance, insurance and other, net | 39.8 | 52.3 | (24) | % | 123.2 | 152.6 | (19) | % | ||||
| Total revenues | 607.8 | 663.3 | (8) | % | 1,898.6 | 1,766.1 | 8 | % | ||||
| Gross Profit: | ||||||||||||
| Retail new vehicles | 2.8 | — | 100 | % | 5.0 | 0.3 | NM | |||||
| Used vehicles | 6.0 | (29.9) | 120 | % | 10.7 | (51.4) | 121 | % | ||||
| Wholesale vehicles | — | 3.2 | (100) | % | 3.6 | 6.4 | (44) | % | ||||
| Total vehicles | 8.8 | (26.7) | 133 | % | 19.3 | (44.7) | 143 | % | ||||
| Finance, insurance and other, net | 39.8 | 52.3 | (24) | % | 123.2 | 152.6 | (19) | % | ||||
| Total gross profit | 48.6 | 25.8 | 88 | % | 142.5 | 107.9 | 32 | % | ||||
| Selling, general and administrative expenses | (67.0) | (53.0) | (26) | % | (213.9) | (137.2) | (56) | % | ||||
| Depreciation and amortization | (7.0) | (4.0) | (75) | % | (18.2) | (11.4) | (60) | % | ||||
| Operating income (loss) | (25.4) | (31.2) | 19 | % | (89.6) | (40.7) | (120) | % | ||||
| Other income (expense): | ||||||||||||
| Interest expense, floor plan | (3.0) | (1.3) | (131) | % | (6.7) | (3.5) | (89) | % | ||||
| Interest expense, other, net | (1.5) | (0.3) | (400) | % | (3.4) | (1.0) | (233) | % | ||||
| Total other income (expense) | (4.5) | (1.7) | (165) | % | (10.1) | (4.6) | (120) | % | ||||
| Income (loss) before taxes | (29.9) | (32.9) | 9 | % | (99.7) | (45.3) | (120) | % | ||||
| Add: impairment charges | — | — | NM | — | — | NM | ||||||
| Segment income (loss) | $ | (29.9) | $ | (32.9) | 9 | % | $ | (99.7) | $ | (45.3) | (120) | % |
| Unit Sales Volume: | ||||||||||||
| Retail new vehicles | 535 | 55 | NM | 705 | 69 | NM | ||||||
| Used vehicles | 15,422 | 21,255 | (27) | % | 47,025 | 62,186 | (24) | % | ||||
| Wholesale vehicles | 2,450 | 3,492 | (30) | % | 8,793 | 9,231 | (5) | % | ||||
| Gross Profit Per Unit: | ||||||||||||
| Total used vehicle and F&I | $ | 2,880 | $ | 1,023 | 182 | % | $ | 2,808 | $ | 1,618 | 74 | % |
NM = Not Meaningful
EchoPark Segment - Same Market
| Three Months Ended<br>September 30, | Better / (Worse) | Nine Months Ended<br>September 30, | Better / (Worse) | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||
| (In millions, except unit and per unit data) | ||||||||||||
| Revenues: | ||||||||||||
| Retail new vehicles | $ | 3.4 | $ | 3.5 | (3) | % | $ | 10.3 | $ | 4.4 | 134 | % |
| Used vehicles | 367.8 | 569.7 | (35) | % | 1,176.8 | 1,529.7 | (23) | % | ||||
| Wholesale vehicles | 29.6 | 33.0 | (10) | % | 121.1 | 73.5 | 65 | % | ||||
| Total vehicles | 400.8 | 606.2 | (34) | % | 1,308.2 | 1,607.6 | (19) | % | ||||
| Finance, insurance and other, net | 27.9 | 52.0 | (46) | % | 90.2 | 152.0 | (41) | % | ||||
| Total revenues | 428.7 | 658.2 | (35) | % | 1,398.4 | 1,759.6 | (21) | % | ||||
| Gross Profit: | ||||||||||||
| Retail new vehicles | 0.3 | 0.2 | 50 | % | 0.9 | 0.3 | 50 | % | ||||
| Used vehicles | 0.1 | (29.7) | 100 | % | (11.3) | (51.2) | 78 | % | ||||
| Wholesale vehicles | 0.1 | 3.3 | (97) | % | 3.6 | 6.5 | (45) | % | ||||
| Total vehicles | 0.5 | (26.2) | 102 | % | (6.8) | (44.4) | 85 | % | ||||
| Finance, insurance and other, net | 27.9 | 52.0 | (46) | % | 90.2 | 152.0 | (41) | % | ||||
| Total gross profit | $ | 28.4 | $ | 25.8 | 10 | % | $ | 83.4 | $ | 107.6 | (22) | % |
| Unit Sales Volume: | ||||||||||||
| Retail new vehicles | 45 | 55 | (18) | % | 126 | 69 | 83 | % | ||||
| Used vehicles | 11,809 | 21,078 | (44) | % | 36,960 | 61,970 | (40) | % | ||||
| Wholesale vehicles | 1,925 | 3,492 | (45) | % | 7,452 | 9,231 | (19) | % | ||||
| Gross Profit Per Unit: | ||||||||||||
| Total used vehicle and F&I | $ | 2,361 | $ | 1,028 | 130 | % | $ | 2,125 | $ | 1,615 | 32 | % |
NM = Not Meaningful
Note: All currently operating EchoPark stores in a local geographic market are included within the same market group as of the first full month following the first anniversary of the market's opening.
Consolidated Selling, General and Administrative ("SG&A") Expenses - Non-GAAP Reconciliation
| Three Months Ended September 30, | Better / (Worse) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | Change | % Change | ||||||||
| (In millions) | |||||||||||
| Reported: | |||||||||||
| Compensation | $ | 255.2 | $ | 206.2 | $ | (49.0) | (24) | % | |||
| Advertising | 21.1 | 16.7 | (4.4) | (26) | % | ||||||
| Rent | 11.9 | 13.8 | 1.9 | 14 | % | ||||||
| Other | 110.8 | 84.7 | (26.1) | (31) | % | ||||||
| Total SG&A expenses | $ | 399.0 | $ | 321.4 | $ | (77.6) | (24) | % | |||
| Reported: | |||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||
| Compensation | 43.9 | % | 43.7 | % | (20) | bps | |||||
| Advertising | 3.6 | % | 3.5 | % | (10) | bps | |||||
| Rent | 2.1 | % | 2.9 | % | 80 | bps | |||||
| Other | 19.1 | % | 18.0 | % | (110) | bps | |||||
| Total SG&A expenses as a % of gross profit | 68.7 | % | 68.1 | % | (60) | bps | |||||
| Nine Months Ended September 30, | Better / (Worse) | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2022 | 2021 | Change | % Change | ||||||||
| (In millions) | |||||||||||
| Reported: | |||||||||||
| Compensation | $ | 774.1 | $ | 608.5 | $ | (165.6) | (27) | % | |||
| Advertising | 72.8 | 44.2 | (28.6) | (65) | % | ||||||
| Rent | 38.3 | 41.2 | 2.9 | 7 | % | ||||||
| Other | 303.6 | 237.4 | (66.2) | (28) | % | ||||||
| Total SG&A expenses | $ | 1,188.8 | $ | 931.3 | $ | (257.5) | (28) | % | |||
| Items of interest: | |||||||||||
| Long term compensation charges | (4.4) | $ | — | ||||||||
| Total SG&A adjustments | $ | (4.4) | $ | — | |||||||
| Adjusted: | |||||||||||
| Total adjusted SG&A expenses | $ | 1,184.4 | $ | 931.3 | $ | (253.1) | (27) | % | |||
| Reported: | |||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||
| Compensation | 44.5 | % | 44.0 | % | (50) | bps | |||||
| Advertising | 4.2 | % | 3.2 | % | (100) | bps | |||||
| Rent | 2.2 | % | 3.0 | % | 80 | bps | |||||
| Other | 17.4 | % | 17.1 | % | (30) | bps | |||||
| Total SG&A expenses as a % of gross profit | 68.3 | % | 67.3 | % | (100) | bps | |||||
| Items of interest: | |||||||||||
| Long term compensation charges | (0.3) | % | — | % | |||||||
| Total effect of adjustments | (0.3) | % | — | % | |||||||
| Adjusted: | |||||||||||
| Total adjusted SG&A expenses as a % of gross profit | 68.0 | % | 67.3 | % | (70) | bps |
Franchised Dealerships Segment - SG&A Expenses - Non-GAAP Reconciliation
| Three Months Ended September 30, | Better / (Worse) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | Change | % Change | ||||||||
| (In millions) | |||||||||||
| Reported: | |||||||||||
| Compensation | $ | 216.2 | $ | 176.6 | $ | (39.6) | (22) | % | |||
| Advertising | 10.5 | 6.4 | (4.1) | (64) | % | ||||||
| Rent | 10.1 | 11.9 | 1.8 | 15 | % | ||||||
| Other | 95.2 | 73.5 | (21.7) | (30) | % | ||||||
| Total SG&A expenses | $ | 332.0 | $ | 268.4 | $ | (63.6) | (24) | % | |||
| Reported: | |||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||
| Compensation | 40.6 | % | 39.6 | % | (100) | bps | |||||
| Advertising | 2.0 | % | 1.4 | % | (60) | bps | |||||
| Rent | 1.9 | % | 2.7 | % | 80 | bps | |||||
| Other | 17.9 | % | 16.5 | % | (140) | bps | |||||
| Total SG&A expenses as a % of gross profit | 62.4 | % | 60.2 | % | (220) | bps | |||||
| Nine Months Ended September 30, | Better / (Worse) | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2022 | 2021 | Change | % Change | ||||||||
| (In millions) | |||||||||||
| Reported: | |||||||||||
| Compensation | $ | 657.2 | $ | 529.7 | $ | (127.5) | (24) | % | |||
| Advertising | 26.2 | 19.8 | (6.4) | (32) | % | ||||||
| Rent | 31.9 | 36.2 | 4.3 | 12 | % | ||||||
| Other | 259.6 | 208.4 | (51.2) | (25) | % | ||||||
| Total SG&A expenses | $ | 974.9 | $ | 794.1 | $ | (180.8) | (23) | % | |||
| Items of interest: | |||||||||||
| Long term compensation charges | $ | (4.4) | $ | — | |||||||
| Total SG&A adjustments | $ | (4.4) | $ | — | |||||||
| Adjusted: | |||||||||||
| Total adjusted SG&A expenses | $ | 970.5 | $ | 794.1 | $ | (176.4) | (22) | % | |||
| Reported: | |||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||
| Compensation | 41.1 | % | 41.5 | % | 40 | bps | |||||
| Advertising | 1.6 | % | 1.6 | % | — | bps | |||||
| Rent | 2.0 | % | 2.8 | % | 80 | bps | |||||
| Other | 16.3 | % | 16.3 | % | — | bps | |||||
| Total SG&A expenses as a % of gross profit | 61.0 | % | 62.2 | % | 120 | bps | |||||
| Items of interest: | |||||||||||
| Long term compensation charges | (0.3) | % | — | % | |||||||
| Total effect of adjustments | (0.3) | % | — | % | |||||||
| Adjusted: | |||||||||||
| Total adjusted SG&A expenses as a % of gross profit | 60.7 | % | 62.2 | % | 150 | bps |
EchoPark Segment - SG&A Expenses
| Three Months Ended September 30, | Better / (Worse) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | Change | % Change | ||||||||
| (In millions) | |||||||||||
| Reported: | |||||||||||
| Compensation | $ | 39.0 | $ | 29.6 | $ | (9.4) | (32) | % | |||
| Advertising | 10.6 | 10.3 | (0.3) | (3) | % | ||||||
| Rent | 1.8 | 1.9 | 0.1 | 5 | % | ||||||
| Other | 15.6 | 11.2 | (4.4) | (39) | % | ||||||
| Total SG&A expenses | $ | 67.0 | $ | 53.0 | $ | (14.0) | (26) | % | |||
| Reported: | |||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||
| Compensation | 80.2 | % | 114.7 | % | 3,450 | bps | |||||
| Advertising | 21.8 | % | 39.9 | % | 1,810 | bps | |||||
| Rent | 3.7 | % | 7.4 | % | 370 | bps | |||||
| Other | 32.2 | % | 43.4 | % | 1,120 | bps | |||||
| Total SG&A expenses as a % of gross profit | 137.9 | % | 205.4 | % | 6,750 | bps | |||||
| Nine Months Ended September 30, | Better / (Worse) | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2022 | 2021 | Change | % Change | ||||||||
| (In millions) | |||||||||||
| Reported: | |||||||||||
| Compensation | $ | 116.9 | $ | 78.8 | $ | (38.1) | (48) | % | |||
| Advertising | 46.6 | 24.4 | (22.2) | (91) | % | ||||||
| Rent | 6.4 | 5.0 | (1.4) | (28) | % | ||||||
| Other | 44.0 | 29.0 | (15.0) | (52) | % | ||||||
| Total SG&A expenses | $ | 213.9 | $ | 137.2 | $ | (76.7) | (56) | % | |||
| Reported: | |||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||
| Compensation | 82.0 | % | 73.0 | % | (900) | bps | |||||
| Advertising | 32.7 | % | 22.6 | % | (1,010) | bps | |||||
| Rent | 4.5 | % | 4.6 | % | 10 | bps | |||||
| Other | 30.9 | % | 27.0 | % | (390) | bps | |||||
| Total SG&A expenses as a % of gross profit | 150.1 | % | 127.2 | % | (2,290) | bps |
Earnings Per Share from Continuing Operations - Non-GAAP Reconciliation
| Three Months Ended September 30, 2022 | Three Months Ended September 30, 2021 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Weighted-<br>Average<br>Shares | Amount | Per<br>Share<br>Amount | Weighted-<br>Average<br>Shares | Amount | Per<br>Share<br>Amount | |||||
| (In millions, except per share amounts) | ||||||||||
| Diluted earnings (loss) and shares from continuing operations | 39.2 | $ | 87.3 | $ | 2.23 | 43.3 | $ | 84.7 | $ | 1.96 |
| Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2021 | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Weighted-<br>Average<br>Shares | Amount | Per<br>Share<br>Amount | Weighted-<br>Average<br>Shares | Amount | Per<br>Share<br>Amount | |||||
| (In millions, except per share amounts) | ||||||||||
| Diluted earnings (loss) and shares from continuing operations | 40.5 | $ | 279.4 | $ | 6.90 | 43.4 | $ | 252.4 | $ | 5.82 |
| Pre-tax items of interest: | ||||||||||
| Long term compensation charges | $ | 4.4 | $ | — | ||||||
| Total pre-tax items of interest | $ | 4.4 | $ | — | ||||||
| Adjusted diluted earnings (loss) and shares from continuing operations | 40.5 | $ | 283.8 | $ | 7.01 | 43.4 | $ | 252.4 | $ | 5.82 |
Adjusted EBITDA - Non-GAAP Reconciliation
| Three Months Ended September 30, 2022 | Three Months Ended September 30, 2021 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Franchised Dealerships Segment | EchoPark Segment | Discontinued Operations | Total | Franchised Dealerships Segment | EchoPark Segment | Discontinued Operations | Total | |||||||||
| (In millions) | ||||||||||||||||
| Net income (loss) | $ | 87.3 | $ | 84.5 | ||||||||||||
| Provision for income taxes | 29.1 | 27.5 | ||||||||||||||
| Income (loss) before taxes | $ | 146.3 | $ | (29.9) | $ | — | $ | 116.4 | $ | 145.1 | $ | (32.9) | $ | (0.2) | $ | 112.0 |
| Non-floor plan interest | 19.9 | 1.5 | — | 21.4 | 8.8 | 0.3 | — | 9.1 | ||||||||
| Depreciation and amortization | 27.3 | 7.0 | — | 34.3 | 21.9 | 4.0 | — | 25.9 | ||||||||
| Stock-based compensation expense | 3.8 | — | — | 3.8 | 3.7 | — | — | 3.7 | ||||||||
| Long-term compensation charges | — | — | — | — | — | 0.5 | — | 0.5 | ||||||||
| Loss (gain) on franchise and real estate disposals | 0.5 | — | — | 0.5 | (0.1) | (0.4) | — | (0.5) | ||||||||
| Adjusted EBITDA | $ | 197.8 | $ | (21.4) | $ | — | $ | 176.4 | $ | 179.4 | $ | (28.5) | $ | (0.2) | $ | 150.7 |
| Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2021 | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Franchised Dealerships Segment | EchoPark Segment | Discontinued Operations | Total | Franchised Dealerships Segment | EchoPark Segment | Discontinued Operations | Total | |||||||||
| (In millions) | ||||||||||||||||
| Net income (loss) | $ | 279.4 | $ | 252.6 | ||||||||||||
| Provision for income taxes | 93.1 | 83.4 | ||||||||||||||
| Income (loss) before taxes | $ | 472.2 | $ | (99.7) | $ | — | $ | 372.5 | $ | 381.1 | $ | (45.3) | $ | 0.2 | $ | 336.0 |
| Non-floor plan interest | 58.0 | 3.2 | — | 61.2 | 26.8 | 1.0 | — | 27.8 | ||||||||
| Depreciation & amortization | 79.6 | 18.1 | — | 97.7 | 64.6 | 11.4 | — | 76.0 | ||||||||
| Stock-based compensation expense | 12.4 | — | — | 12.4 | 11.2 | — | — | 11.2 | ||||||||
| Long-term compensation charges | 4.4 | — | — | 4.4 | — | 1.5 | — | 1.5 | ||||||||
| Loss (gain) on franchise and real estate disposals | (0.5) | — | — | (0.5) | (0.4) | (0.4) | — | (0.8) | ||||||||
| Adjusted EBITDA | $ | 626.1 | $ | (78.4) | $ | — | $ | 547.7 | $ | 483.3 | $ | (31.8) | $ | 0.2 | $ | 451.7 |
q320228kexhibit992
® Sonic Automotive – Investor Presentation October 2022 Updated October 27, 2022 Exhibit 99.2
2 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, the effects of COVID-19 and new variants of the virus on operations, our anticipated future new vehicle unit sales volume, revenues and profitability, our anticipated future used vehicle unit sales volume, revenues and profitability, future levels of consumer demand for new and used vehicles, our anticipated future parts, service and collision repair (“Fixed Operations”) gross profit, our anticipated expense reductions, 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 liquidity positions, anticipated industry new vehicle sales volume, the implementation of growth and operating strategies, including acquisitions of dealerships and properties, anticipated future acquisition synergies, the integration of the RFJ Auto acquisition, 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, 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, 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, 2021 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.
3 Company Overview
4 ® Sonic Automotive: Who We Are QUICK FACTS (NYSE: SAH) a Fortune 500 Company and One of the Nation’s Largest Automotive Retailers 163 25+ 24 17 $12.4 Billion $1.9 Billion 103K New Vehicles Sold 183K Total Revenues Automotive Brands Locations Used Vehicles Sold Collision Centers States Gross Profit Note: Location Counts As Of October 27, 2022. Revenues, Gross Profit, New & Used Vehicles Sold are for FY 2021 Our Core Franchised Dealerships Segment is a Full-Service Automotive Retail Business With Strategic Growth Levers Across Multiple Business Lines with a Diversified Brand Portfolio Our High Growth Potential EchoPark Segment Offers a Unique Approach to Pre-Owned Vehicle and F&I Sales Below-Market Pricing with a No Haggle Purchase Experience Drives Industry-Leading Used Vehicle Volume Throughput
5 Investment Highlights Multiple Growth And Profit Drivers For Franchised Dealerships Segment Unique, High Return Potential EchoPark Business Model Broad Revenue Stream Diversification Complementary Relationship – Sonic Franchised Dealerships And EchoPark Disciplined Capital Allocation To Drive Shareholder Returns Focused On Expense Control And Maintaining Strong Balance Sheet
6 Revenue Composition BY GEOGRAPHY TX 26% CA 22% CO 8% ID 7% TN 7% FL 6% AL 5% IN 1% NC 4% GA 4% VA 2% MD 2% All Others 6% Broad Geographic Distribution Geographic Footprint, Revenue Streams and Brand Mix Offer Attractive Diversification Across the Automotive Retail Space Note: Percentages are Percent of Total Revenue for Nine Months Ended September 30, 2022
7 Revenue Composition – Diversified Revenue Streams Note: Percentages are Percent of Total for the Nine Months Ended September 30, 2022 5% 29% 11% 34% 44% 8% 40% 29% Revenue Gross Profit New Vehicle Used Vehicle (Including Wholesale) Parts, Service & Collision Repair ("Fixed Operations") Finance & Insurance ("F&I") Brand Distribution Note: Percentages are Percent of Total Revenue for the Nine Months Ended September 30, 2022 Brand % of Revenue Franchise Brand % of Revenue BMW 20% Mercedes 10% Audi 5% Lexus 4% Porsche 3% Land Rover 3% Cadillac 2% Volvo 1% Other Luxury (1) 4% Honda 8% Toyota 7% Volkswagen 1% Hyundai 1% Nissan 1% Other Import (2) <1% EchoPark 17% Non-Franchise 17% Ford 4% Chrysler Dodge Jeep RAM 4% Chevrolet GMC Buick 5% Luxury 52% 18%Import Domestic 13% (1) Includes Alfa Romeo, Infiniti, Jaguar, Maserati and MINI (2) Includes Mazda and Subaru Business Line Mix Majority Of Gross Profit Driven By Stable Business Lines
8 ® EchoPark Automotive – A Unique Growth Story Growing Nationwide Distribution Network Unique, High Return Potential Business Model Focus On High Quality Pre-Owned Vehicles, In-Store or Online Expect To Reach 90% Of U.S. Population By 2025 Priced Up To $3,000 Below Market With Simplified, Easy Purchase Experience Focus On Pre-Owned Market – 2.5x Larger & More Stable Than New Vehicle Market The New Car Alternative™ Price. Quality. Experience. Note: Expected U.S. population reach is a projection, actual results may differ. See “Forward-Looking Statements.”
9 Franchised Dealerships ® ® Complementary Relationship Between Segments • Thrives When New Vehicle Industry Is Healthy, Particularly Where Luxury Brands Are Strong • Diversified Revenue Streams • Relatively Low Fixed Costs And Multiple Strategic Levers • Further Growth Opportunities: Parts And Service Business Used Vehicles F&I Penetration Expense Leverage Strategic Acquisitions • Strong Secular Growth Phase Due To: Focus On Highly Fragmented Pre-Owned Vehicle Market Below-Market Pricing Strategy Simplified, Easy Purchase Experience • In A Declining Pre-Owned Vehicle Price Environment, EchoPark Should: Benefit From Rapid Inventory Turns, Creating An Even Greater Pricing Advantage Over Competitors To Drive Additional Unit Sales Volume
10 Strategic Direction • Continued Growth Opportunity In Parts & Service, F&I Per Unit • Ongoing Profitability Enhancement Through SG&A Expense Control, Inventory Management • Pursue Strategic Acquisition Opportunities As Market Evolves • Utilize Existing Infrastructure To Support Omnichannel Distribution Network • Early-Stage Strong Secular Growth Phase • Achieved >50% U.S. Population Coverage To Date, Expect 90% Coverage By 2025 • Growing eCommerce Presence Offers Scalable Incremental Reach • Addressable Market Opportunity Of 2 Million Vehicles Annually At Maturity • Invest In Proprietary Digital Retail Platform To Accelerate Growth • Focus On Guest Experience To Drive Market Share Gains • Balanced Capital Allocation Strategy Prioritizes Highest Return on Investment • Return Of Capital To Shareholders Via Share Repurchase Program And Dividend (In October 2022, Sonic’s Board Approved A 12% Increase To Quarterly Cash Dividend, To $0.28 Per Share) Franchised Dealerships EchoParkStrategic Drivers Note: Profitability, unit sales volume and population coverage projections are estimates of future results. Actual results may differ. See “Forward-Looking Statements.”
11 Strong Balance Sheet And Liquidity September 30, 2022 December 31, 2021 (In Millions) Cash and cash equivalents 139.0$ 299.4$ Availability under the 2021 Revolving Credit Facility 286.6 281.4 Availability under the 2019 Mortgage Facility 30.4 22.2 Floor plan deposit balance 32.0 99.8 Total available liquidity resources 488.0$ 702.8$ Covenant Requirement* September 30, 2022 December 31, 2021 Liquidity ratio >= 1.05 1.22 1.26 Fixed charge coverage ratio >= 1.20 2.51 2.69 Total lease adjusted leverage ratio <= 5.75 2.46 2.46 Net debt to Adjusted EBITDA ratio(1) 1.82 1.80 * As Defined In The 2021 Revolving Credit Facility and 2019 Mortgage Facility (1) Refer To Appendix For Calculation And Reconciliation of Adjusted EBITDA (A Non-GAAP Measure) and Net Debt To Adjusted EBITDA Ratio (A Non-GAAP Measure) $215 Million Decrease In Liquidity Driven By $245 Million In YTD Share Repurchases Current Leverage Ratios Are Within Internal Target Range
12 Impact Of Share Repurchases Repurchased 5.2 Million Shares YTD 2022, Or 13% Of Total Shares Outstanding As Of December 31, 2021 $481.0 Million Remaining Repurchase Authorization 43.1 41.8 40.7 36.6 30.0 35.0 40.0 45.0 Dec 2019 Dec 2020 Dec 2021 Sep 2022 (In M illi on s) Total Class A & Class B Shares Outstanding
13 Franchised Dealerships
14 New & Used Vehicle Sales Parts & Service (P&S) Finance & Insurance (F&I) ® Franchised Dealerships Franchised Dealerships111 Brands, Luxury Weighted25+ Diversified Revenue Streams • New & Used Vehicle Sales • Parts Service (P S) • Finance & Insurance (F&I) Collision Repair Centers17 18 States Stable Business With Organic And Acquisition Growth Opportunities Resilient And Flexible Business Model Through Economic Cycles
15 Franchised Dealerships – Geographic Footprint Diversified Geographic Market Platform 111 Stores, 25+ Brands, 17 Collision Repair Centers
16 Franchised Dealerships – Strategic Growth Levers Mature Cash Flows + Multiple Growth Drivers Pursue Strategic Acquisitions Opportunities Grow Parts and Service Retention Maximize F&I Penetration High Used Vehicle Volume Throughput Data-Driven Inventory Management Apply EchoPark Learnings Develop Omnichannel Platform SG&A Expense Discipline Realize Synergies From Acquisitions
17 EchoPark
18 EchoPark – Brand Promise Up To 40% Below New Vehicle Price Up To $3,000 Below Used Vehicle Market Price High Quality Pre-Owned Vehicles With Available Warranty Transparent Guest-Centric Experience New Car Feel Without The New Car Price Complete Purchase In Under An Hour Free CARFAX Report With Every Vehicle Buy & Sell Your Way – On-Site Or Online P r i c e . Q u a l i t y. E x p e r i e n c e . L o w C o s t O m n i c h a n n e l M o d e l
19 EchoPark – Developing Nationwide Distribution Network Achieved >50% Population Coverage To Date Target 90% Population Coverage By 2025 Note: Future locations and U.S. population coverage are based on projections. Actual results may differ. See “Forward-Looking Statements.” Existing Delivery Center Future Delivery Center Coverage Area Existing Retail Hub Future Market Opportunities
20 EchoPark – Addressable Market Opportunity * Share Of Vehicles That Fit 1-4-Year-Old Model In Existing EchoPark Markets Target 90% Population Coverage By 2025 With Growing Nationwide Distribution Network Target 10% Market Share Already Achieving This Share* In Most Mature Market Priced Up to $3,000 Below Market Price Competes On Price vs. Older Vehicles, Consumer Can Buy Newer Vehicle For Same Price Pricing Up To 40% Below New Converts Prospective New Car Buyers 2 MILLION Opportunity 15+ MILLION 1–4-Year-Old Vehicles 6+ MILLION 5–6-Year- Old Vehicles 13+ MILLION New Vehicles Long-Term Strategy Remains Focused On Nearly-New, 1–4-Year Old Vehicle Segment Despite Recent Strategic Adjustments To Include 5+ Year Old Inventory Annual Retail Vehicle Sales Volume
21 EchoPark – Delivery Center Model Existing Retail Hub Example Delivery Center Market Coverage Opportunity Delivery Center Model • Utilize Nearby Retail Hub For Inventory Storage And Reconditioning (Asset Light Expansion) • Advertise Inventory Online In Surrounding Markets • Drive Incremental eCommerce Sales In New Markets • Inspect & Buy Vehicles From Guests After Online Appraisal And Firm Purchase Offer • Arrange Vehicle Transport To Delivery Center • Guest Picks Up Vehicle At EchoPark Delivery Center Nearest Their Home (i.e. Next-To-Last-Mile Delivery) Strategic Advantages • Accelerates Entry Into New Markets With Minimal Capital Expenditures Or Overhead Costs • Same Guest-Centric Purchase Experience And Convenience • Blend Of Brick And Mortar And eCommerce Distribution Network Creates Operating Leverage Delivery Center Markets • Expect To Support 3 To 4 Delivery Centers Per Retail Hub At Maturity • Target Adjacent Secondary Markets Or Large Metro Markets Where Traditional Dealership Real Estate Is Unavailable Or Cost Prohibitive
22 EchoPark – Industry Headwinds & Action Plan Industry Headwinds • Supply Chain Disruption Continues To Suppress New Vehicle Production And Inventory Levels • Rental Car Companies Continue To Be Net Buyers In Used Vehicle Auction Market, But Not Paying As Much Above Market As During First Half Of 2022 (Driving 8.9% Decrease In 3-Year Old Vehicle Manheim Prices In Q3 2022) • Used Price As A Percentage Of New Price At 67% (Typically In 55-60% Range) Continues to Negatively Impact Affordability • October Month-To-Date, 3-Year Old Vehicle Manheim Prices Decreased 2.7%, Now Down 15.7% YTD 2022 • Auction “No-Sells” 55-60% Of Listings In October (Indicator Of Continued Slowing Wholesale Demand, Risk Of Further Price Declines In Near Term) EchoPark Action Plan In Progress • Expanded Inventory To Include 5+ Year Old Vehicles In All Markets, Driving Lower Inventory Acquisition Cost And Lower Retail Selling Price, Expanding Customer Segments While Benefiting Consumer Affordability And Gross Profit Per Unit (“GPU”) • Implemented Marketing Strategy To Source More Vehicles From Non-Auction Sources (Historically Less Than 10% Of Inventory) • Launched New EchoPark.com In June 2022 To Modernize eCommerce Offering And Drive Improved Sales Efficiency And Volume Throughput • EchoPark Brand Launch – Increase Consumer Awareness And Advertising Reach Beyond Being The Low Price Leader • Targeted Expense Reductions At EchoPark Are Expected To Drive Further Profitability Improvement In Q4 2022 And EchoPark EBITDA Breakeven In Q2 2023 • Continued Focus On Maintaining Highest Reputation Scores In The Pre-Owned Competitive Segment EchoPark Action Plan Results To Date • Improved Non-Auction Sourcing Mix From 25% In Q2 2022 To 32% Of Sales In Q3 2022 (Historically Less Than 10%) • Older Model Year Cohort Vehicles (5+ Years Old) Represented 19% of Q3 2022 EchoPark Unit Sales Volume (Up From 9% In Q2 2022), Average 30% Lower Selling Price And Generate $1,850 More In Total GPU Compared To 1-4-Year Old Vehicles • New EchoPark.com eCommerce Results For Q3 2022 (Launched To 100% Of Web Traffic In June 2022) • Omnichannel Transactions Accounted For 31% Of EchoPark Retail Unit Volume In Q3 2022 (Up From 19% In Q2 2022), With 7% Of EchoPark Volume Sold End-to-End Online (Compared to 7% In Q2 2022) • 60% Of Units Sold Were Shipped Out Of Market • Online F&I Attachment Continues To Exceed Expectations, Averaging $2,325 Per Unit (Up From $2,250 In Q2 2022)
23 EchoPark – Growth Path 212 660 881 920 764 941 1,136 1,585 1,685 1,673 2,049 2,400 4,496 5,518 7,459 7,698 8,762 11,051 12,587 13,206 12,676 13,986 13,207 15,127 14,841 19,670 21,261 21,255 15,649 14,995 16,608 15,422 $- $100 $200 $300 $400 $500 $600 $700 $800 (In M illi on s) Quarterly Used Retail Units Quarterly Revenue Lower Unit Volume Beginning Q4 2021 A Result Of Strategic Adjustments To Manage Inventory Levels And Mitigate Operating Losses Amid Ongoing Challenges In Used Vehicle Price Environment
24 EchoPark – Adjusted EBITDA Trend ($2.8) ($1.1) ($3.4) ($2.2) ($3.0) ($2.1) $5.0 $4.8 $6.4 $5.3 $5.2 $5.6 $3.1 ($2.9) $6.2 ($9.4) ($28.5) ($14.6) ($29.0) ($27.9) ($21.4) $6.1 $6.2 $6.8 $4.8 $(0.3) $6.7 $(4.0) $(11.7) $(6.1) $(17.9)$(18.2) $(15.7) $(30) $(25) $(20) $(15) $(10) $(5) $- $5 $10 Adjusted EBITDA Less Impact of New Stores (In M illi on s) Current Headcount And SG&A Structure Is Based On Higher Unit Sales Volume Projections Expected Once Transitory Used Pricing Environment Normalizes Refer To Appendix For Calculation And Reconciliation of Adjusted EBITDA (A Non-GAAP Measure) Adjusted EBITDA by Month Jul 2022 Aug 2022 Sep 2022 Q3 2022 Total EchoPark $ (7.1) $ (7.4) $ (6.9) $ (21.4) Impact of Stores Open <12 Months $ (2.4) $ (1.9) $ (1.4) $ (5.7) Net of New Store Impact $ (4.7) $ (5.5) $ (5.5) $ (15.7) Used Retail Unit Volume 5,059 4,858 5,505 15,422 Expect Continued Improvement In EBITDA Losses In Q4 2022, Targeting Return To Breakeven In Q2 2023
25 Omnichannel Strategy
26 Full Omnichannel Infrastructure Guest Experience Managers Centralized Appraisals, Inventory Sourcing, Pricing Centralized Call Support Centralized F&I Digital Interface People Proprietary Technology Centralized Marketing Developed & Launched eCommerce Platform B u y & S e l l Yo u r Wa y Proprietary Ability to Buy a Car A-to-Z Online or Convert To Omnichannel At Any Step In Between Utilize SIMS, Python Analytics, Robotic Process Automation, Hyper-Intelligence Technology ON-SITE ONLINE Se am le ss G ue st E xp er ie nc e
27 Buy & Sell Your Way • Complete A Traditional Vehicle Purchase Experience With A Modern, Technology- Enabled Approach • Can Be Completed In Under An Hour • Research Online, Utilize Chat, Text, Phone, Zoom To Reduce In-Person Process • Review And Select Insurance Products And Financing Options • Includes Online Trade-In Appraisal And Firm Purchase Offer • Complete A Full eCommerce Transaction In Minutes • Conveniently Test Drive And Finalize Purchase At Franchised Dealership, EchoPark Retail Hub Or EchoPark Delivery Center Buy & Sell Your Way Start Online, Finish On-Site Or Buy Completely Online Buy On-Site • Our Blend Of Brick And Mortar And eCommerce Strategies Allows Guests To Choose Their Preferred Buying Approach • A Flexible, Guest- Centric Experience With Options • Will Be Seamless To The Guest, Regardless Of Which Path They Choose Represents 31% Of Q3 2022 EchoPark Unit Sales Volume
28 New EchoPark.com Results to Date Rolled Out To 100% Of National Web Traffic In June 2022 Conversion Rate 30% Higher Compared To Old Website Q3 2022 F&I of $2,325 Per Unit Exceeding Projections For End-To-End Online F&I Product Sales Nearly 60% Of Vehicles Sold Out Of Market In Q3 2022, Driving Incremental Reach Technical Site Improvements – Bounce Rate 90% Better, Time On Site 33% Better, Pages Per Session 33% Better Than Old Website
29 Appendix
30 Non-GAAP Reconciliation – Segment Income – QTD Franchised Dealerships Segment EchoPark Segment Consolidated (In millions, except unit data) Q3 2022 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Q3 2021 Revenues 2,840.3$ 2,409.5$ 607.8$ 663.3$ 3,448.1$ 3,072.8$ Gross profit 532.1$ 446.2$ 48.6$ 25.8$ 580.7$ 472.0$ SG&A expenses 332.0$ 268.4$ 67.0$ 53.0$ 399.0$ 321.4$ Segment income 146.3$ 145.1$ (29.9)$ (32.9)$ 116.4$ 112.2$ Impairment charges - - - - - - Earnings (loss) from continuing operations before taxes 146.3$ 145.1$ (29.9)$ (32.9)$ 116.4$ 112.2$ Net income (loss) from continuing operations 87.3$ 84.7$ Retail new vehicle unit sales volume 24,241 22,280 535 55 24,776 22,335 Fleet new vehicle unit sales volume 672 511 - - 672 511 Retail used vehicle unit sales volume 26,647 26,274 15,422 21,255 42,069 47,529 Wholesale used vehicle unit sales volume 5,813 6,119 2,450 3,492 8,263 9,611 Note: Segment Income (Loss) Defined As Earnings (Loss) From Continuing Operations Before Taxes And Impairment Charges
31 Non-GAAP Reconciliation – Segment Income – YTD Franchised Dealerships Segment EchoPark Segment Consolidated (In millions, except unit data) YTD Q3 2022 YTD Q3 2021 YTD Q3 2022 YTD Q3 2021 YTD Q3 2022 YTD Q3 2021 Revenues 8,511.9$ 7,445.8$ 1,898.6$ 1,766.1$ 10,410.5$ 9,211.9$ Gross profit 1,598.4$ 1,275.8$ 142.5$ 107.9$ 1,740.9$ 1,383.7$ SG&A expenses 974.9$ 794.1$ 213.9$ 137.2$ 1,188.8$ 931.3$ Adjusted segment income 476.6$ 381.1$ (99.7)$ (45.3)$ 376.9$ 335.8$ Long-term compensation charges (4.4) - - - (4.4) - Segment income 472.2$ 381.1$ (99.7)$ (45.3)$ 372.5$ 335.8$ Impairment charges - - - - - - Earnings (loss) from continuing operations before taxes 472.2$ 381.1$ (99.7)$ (45.3)$ 372.5$ 335.8$ Adjusted earnings (loss) from continuing operations before taxes 476.6$ 381.1$ (99.7)$ (45.3)$ 376.9$ 335.8$ Long-term compensation charges (4.4) - - - (4.4) - Earnings (loss) from continuing operations before taxes 472.2$ 381.1$ (99.7)$ (45.3)$ 372.5$ 335.8$ Adjusted net income (loss) from continuing operations 283.8$ 252.4$ Long-term compensation charges (before taxes) (4.4) - Tax effect of items of interest and non-recurring tax items - - Net income (loss) from continuing operations 279.4$ 252.4$ Retail new vehicle unit sales volume 73,185 76,340 705 69 73,890 76,409 Fleet new vehicle unit sales volume 1,454 1,297 - - 1,454 1,297 Retail used vehicle unit sales volume 81,881 82,060 47,025 62,186 128,906 144,246 Wholesale used vehicle unit sales volume 18,436 19,704 8,793 9,231 27,229 28,935 Note: Segment Income (Loss) Defined As Earnings (Loss) From Continuing Operations Before Taxes And Impairment Charges
32 Non-GAAP Reconciliation – Segment Income – Prior FY Franchised Dealerships Segment EchoPark Segment Consolidated (In millions, except unit data) FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 Revenues 10,051.1$ 8,348.0$ 2,345.3$ 1,419.0$ 12,396.4$ 9,767.0$ Gross profit 1,765.6$ 1,309.4$ 148.8$ 114.0$ 1,914.3$ 1,423.6$ SG&A expenses 1,076.9$ 933.7$ 197.8$ 94.9$ 1,274.7$ 1,028.7$ Adjusted segment income 547.1$ 227.2$ (65.5)$ (1.2)$ 481.6$ 226.0$ Acquisition and disposition-related gain (loss) (1.2) 4.0 - 5.2 (1.2) 9.2 Long-term compensation charges - - (6.5) - (6.5) - Loss on extinguishment of debt (15.6) - - - (15.6) - Segment income 530.3$ 231.2$ (72.0)$ 4.0$ 458.3$ 235.2$ Impairment charges - (270.0) (0.1) - (0.1) (270.0) Earnings (loss) from continuing operations before taxes 530.3$ (38.8)$ (72.1)$ 4.0$ 458.2$ (34.8)$ Adjusted earnings (loss) from continuing operations before taxes 547.1$ 226.4$ (65.6)$ (1.2)$ 481.5$ 225.2$ Acquisition and disposition-related gain (loss) (1.2) 4.0 - 5.2 (1.2) 9.2 Long-term compensation charges - - (6.5) - (6.5) - Loss on extinguishment of debt (15.6) - - - (15.6) - Impairment charges - (269.2) - - - (269.2) Earnings (loss) from continuing operations before taxes 530.3$ (38.8)$ (72.1)$ 4.0$ 458.2$ (34.8)$ Adjusted net income (loss) from continuing operations 366.3$ 168.9$ Acquisition and disposition-related gain (loss) (before taxes) (1.2) 9.2 Long-term compensation charges (before taxes) (6.5) - Loss on extinguishment of debt (before taxes) (15.6) - Impairment charges (before taxes) - (269.2) Tax effect of items of interest and non-recurring tax items 5.9 40.4 Net income (loss) from continuing operations 348.9$ (50.7)$ New vehicle unit sales volume 103,358 93,281 128 - 103,486 93,281 Retail used vehicle unit sales volume 105,457 101,864 77,835 57,161 183,292 159,025 Note: Segment Income (Loss) Defined As Earnings (Loss) From Continuing Operations Before Taxes And Impairment Charges
33 Non-GAAP Reconciliation – Adjusted EBITDA Note – Balance Sheet Amounts Are As Of December 31 For The FY Then Ended. For The LTM Q3 2022 Period, Balance Sheet Amounts Are As Of September 30, 2022. (In millions) FY 2018 FY 2019 FY 2020 FY 2021 LTM Q3 2022 Net Income (Loss) 51.7$ 144.1$ (51.4)$ 348.9$ 375.7$ Provision For Income Taxes 22.6 55.0 15.6 109.3 118.9 Income (Loss) Before Taxes 74.3$ 199.1$ (35.8)$ 458.2$ 494.6$ Non-Floor Plan Interest 52.0 50.5 38.7 44.7 78.1 Depreciation and Amortization 96.7 95.6 93.9 104.3 126.1 Stock-Based Compensation Expense 11.9 10.8 11.7 15.0 16.2 Loss (Gain) On Exit Of Leased Dealerships 1.7 (0.2) - - - Impairment Charges 29.5 20.8 270.0 0.1 0.1 Loss (Gain) On Debt Extinguishment - 6.7 - 15.6 15.6 Long-Term Compensation Charges 32.5 - - 8.0 10.9 Acquisition and Disposition-Related (Gain) Loss (39.3) (74.8) (8.2) (0.4) - Adjusted EBITDA 259.3$ 308.5$ 370.3$ 645.5$ 741.6$ Long-Term Debt (Including Current Portion) 945.1$ 706.9$ 720.1$ 1,561.2$ 1,522.4$ Cash and Equivalents (5.9) (29.1) (170.3) (299.4) (139.0) Floor Plan Deposit Balance - - (73.2) (99.8) (32.0) Net Debt 939.2$ 677.8$ 476.6$ 1,162.0$ 1,351.4$ Net Debt To Adjusted EBITDA Ratio 3.62 2.20 1.29 1.80 1.82 Long-Term Debt (Including Current Portion) To Adjusted EBITDA Ratio 3.64 2.29 1.94 2.42 2.05
34 Non-GAAP Reconciliation – Adjusted EBITDA By Segment Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total (In millions) (In millions) Net Income (Loss) $ 87.3 $ 84.5 Provision For Income Taxes 29.1 27.5 Income (Loss) Before Taxes $ 146.3 $ (29.9) $ - $ 116.4 $ 145.1 $ (32.9) $ (0.2) $ 112.0 Non-Floor Plan Interest 19.9 1.5 - 21.4 8.8 0.3 - 9.1 Depreciation And Amortization 27.3 7.0 - 34.3 21.9 4.0 - 25.9 Stock-Based Compensation Expense 3.8 - - 3.8 3.7 - - 3.7 Long-Term Compensation Charges - - - - - 0.5 - 0.5 Gain On Franchise And Real Estate Disposals 0.5 - - 0.5 (0.1) (0.4) - (0.5) Adjusted EBITDA $ 197.8 $ (21.4) $ - $ 176.4 $ 179.4 $ (28.5) $ (0.2) $ 150.7 Q3 2022 Q3 2021
35 Non-GAAP Reconciliation – Adjusted EBITDA By Segment Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total (In millions) (In millions) Net Income (Loss) $ 97.3 $ 54.2 Provision For Income Taxes 31.6 19.1 Income (Loss) Before Taxes $ 163.8 $ (34.9) $ - $ 128.9 $ 70.6 $ 2.0 $ 0.7 $ 73.3 Non-Floor Plan Interest 19.0 0.7 - 19.7 9.1 0.4 - 9.5 Depreciation And Amortization 25.9 5.2 - 31.1 21.2 3.3 - 24.5 Stock-Based Compensation Expense 4.4 - - 4.4 3.5 - - 3.5 Long-Term Compensation Charges - - - - - 0.5 - 0.5 Gain On Franchise And Real Estate Disposals (1.1) - - (1.1) - - - - Adjusted EBITDA $ 212.0 $ (29.0) $ - $ 183.0 $ 104.4 $ 6.2 $ 0.7 $ 111.3 Q1 2022 Q1 2021 Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total (In millions) (In millions) Net Income (Loss) 94.8$ 113.8$ Provision For Income Taxes 32.4 37.0 Income (Loss) Before Taxes 162.1$ (34.9)$ -$ 127.2$ 165.4$ (14.4)$ (0.2)$ 150.8$ Non-Floor Plan Interest 19.1 1.0 - 20.1 8.9 0.3 - 9.2 Depreciation And Amortization 26.4 6.0 - 32.4 21.4 4.2 - 25.6 Stock-Based Compensation Expense 4.2 - - 4.2 4.0 - - 4.0 Long-Term Compensation Charges 4.4 - - 4.4 - 0.5 - 0.5 Gain On Franchise And Real Estate Disposals 0.1 - - 0.1 (0.4) - - (0.4) Adjusted EBITDA 216.3$ (27.9)$ -$ 188.4$ 199.3$ (9.4)$ (0.2)$ 189.7$ Q2 2022 Q2 2021
36 Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total (In millions) (In millions) Net Income (Loss) $ 96.3 $ 57.3 Provision For Income Taxes 25.8 32.8 Income (Loss) Before Taxes $ 148.9 $ (26.8) $ - $ 122.1 $ 90.6 $ (0.8) $ 0.3 $ 90.1 Non-Floor Plan Interest 16.2 0.7 - 16.9 9.0 0.2 - 9.2 Depreciation And Amortization 23.4 4.9 - 28.3 21.1 2.9 - 24.0 Stock-Based Compensation Expense 3.8 - - 3.8 3.2 - - 3.2 Impairment Charges - 0.1 - 0.1 1.2 - - 1.2 Loss On Debt Extinguishment 15.6 - - 15.6 - - - - Long-Term Compensation Charges - 6.5 - 6.5 - - - - Acquisition and Disposition-Related (Gain) Loss 0.5 - - 0.5 (0.8) (5.2) - (6.0) Adjusted EBITDA $ 208.4 $ (14.6) $ - $ 193.8 $ 124.3 $ (2.9) $ 0.3 $ 121.7 Q4 2021 Q4 2020 Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total (In millions) (In millions) Net Income (Loss) $ 84.5 $ 59.8 Provision For Income Taxes 27.5 20.6 Income (Loss) Before Taxes $ 145.1 $ (32.9) $ (0.2) $ 112.0 $ 80.4 $ 0.2 $ (0.2) $ 80.4 Non-Floor Plan Interest 8.8 0.3 - 9.1 9.8 0.1 - 9.9 Depreciation And Amortization 21.9 4.0 - 25.9 21.0 2.8 - 23.8 Stock-Based Compensation Expense 3.7 - - 3.7 3.2 - - 3.2 Impairment Charges - - - - - - - - Long-Term Compensation Charges - 0.5 - 0.5 - - - - Gain On Franchise And Real Estate Disposals (0.1) (0.4) - (0.5) (3.4) - - (3.4) Adjusted EBITDA $ 179.4 $ (28.5) $ (0.2) $ 150.7 $ 111.0 $ 3.1 $ (0.2) $ 113.9 Q3 2021 Q3 2020 Non-GAAP Reconciliation – Adjusted EBITDA By Segment
37 Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total (In millions) (In millions) Net Income (Loss) $ 113.8 $ 30.8 Provision For Income Taxes 37.0 6.3 Income (Loss) Before Taxes $ 165.4 $ (14.4) $ (0.2) $ 150.8 $ 34.8 $ 2.6 $ (0.3) $ 37.1 Non-Floor Plan Interest 8.9 0.3 - 9.2 9.0 0.2 - 9.2 Depreciation And Amortization 21.4 4.2 - 25.6 20.5 2.8 - 23.3 Stock-Based Compensation Expense 4.0 - - 4.0 3.0 - - 3.0 Impairment Charges - - - - 0.8 - - 0.8 Long-Term Compensation Charges - 0.5 - 0.5 - - - - Gain On Franchise And Real Estate Disposals (0.4) - - (0.4) 1.1 - - 1.1 Adjusted EBITDA $ 199.3 $ (9.4) $ (0.2) $ 189.7 $ 69.2 $ 5.6 $ (0.3) $ 74.5 Q2 2021 Q2 2020 Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total (In millions) (In millions) Net Income (Loss) $ 54.2 $ (199.3) Provision For Income Taxes 19.1 (44.2) Income (Loss) Before Taxes $ 70.5 $ 2.0 $ 0.8 $ 73.3 $ (245.3) $ 2.1 $ (0.3) $ (243.5) Non-Floor Plan Interest 9.1 0.4 - 9.5 10.0 0.4 - 10.4 Depreciation And Amortization 21.2 3.3 - 24.5 20.1 2.7 - 22.8 Stock-Based Compensation Expense 3.5 - - 3.5 2.4 - - 2.4 Impairment Charges - - - - 268.0 - - 268.0 Long-Term Compensation Charges - 0.5 - 0.5 - - - - Gain On Franchise And Real Estate Disposals - - - - - - - - Adjusted EBITDA $ 104.3 $ 6.2 $ 0.8 $ 111.3 $ 55.2 $ 5.2 $ (0.3) $ 60.1 Q1 2021 Q1 2020 Non-GAAP Reconciliation – Adjusted EBITDA By Segment
38 Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total (In millions) (In millions) Net Income (Loss) $ 57.3 $ 46.3 Provision For Income Taxes 32.8 14.7 Income (Loss) Before Taxes $ 90.6 $ (0.8) $ 0.3 $ 90.1 $ 75.5 $ (14.5) $ - $ 61.0 Non-Floor Plan Interest 9.0 0.2 - 9.2 12.2 0.4 - 12.6 Depreciation And Amortization 21.1 2.9 - 24.0 21.0 2.8 - 23.8 Stock-Based Compensation Expense 3.2 - - 3.2 2.7 - - 2.7 Impairment Charges 1.2 - - 1.2 1.1 16.6 - 17.7 Loss On Debt Extinguishment - - - - 6.7 - - 6.7 Gain On Franchise And Real Estate Disposals (0.8) (5.2) - (6.0) (29.2) - - (29.2) Adjusted EBITDA $ 124.3 $ (2.9) $ 0.3 $ 121.7 $ 90.0 $ 5.3 $ - $ 95.3 Q4 2020 Q4 2019 Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total (In millions) (In millions) Net Income (Loss) $ 59.8 $ 29.0 Provision For Income Taxes 20.6 11.3 Income (Loss) Before Taxes $ 80.4 $ 0.2 $ (0.2) $ 80.4 $ 38.4 $ 2.1 $ (0.2) $ 40.3 Non-Floor Plan Interest 9.8 0.1 - 9.9 11.9 0.5 - 12.4 Depreciation And Amortization 21.0 2.8 - 23.8 21.6 2.7 - 24.3 Stock-Based Compensation Expense 3.2 - - 3.2 2.7 - - 2.7 Impairment Charges - - - - - 1.1 - 1.1 Gain On Franchise Disposals (3.4) - - (3.4) 0.8 - - 0.8 Adjusted EBITDA $ 111.0 $ 3.1 $ (0.2) $ 113.9 $ 75.4 $ 6.4 $ (0.2) $ 81.6 Q3 2020 Q3 2019 Non-GAAP Reconciliation – Adjusted EBITDA By Segment
39 Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total (In millions) (In millions) Net Income (Loss) $ 30.8 $ 26.6 Provision For Income Taxes 6.3 10.0 Income (Loss) Before Taxes $ 34.8 $ 2.6 $ (0.3) $ 37.1 $ 35.1 $ 1.7 $ (0.2) $ 36.6 Non-Floor Plan Interest 9.0 0.2 - 9.2 12.6 0.4 - 13.0 Depreciation And Amortization 20.5 2.8 - 23.3 21.7 2.7 - 24.4 Stock-Based Compensation Expense 3.0 - - 3.0 2.6 - - 2.6 Impairment Charges 0.8 - - 0.8 - - - - Gain On Franchise Disposals 1.1 - - 1.1 0.4 - - 0.4 Adjusted EBITDA $ 69.2 $ 5.6 $ (0.3) $ 74.5 $ 72.4 $ 4.8 $ (0.2) $ 77.0 Q2 2020 Q2 2019 Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total (In millions) (In millions) Net Income (Loss) $ (199.3) $ 42.2 Provision For Income Taxes (44.2) 19.0 Income (Loss) Before Taxes $ (245.3) $ 2.1 $ (0.3) $ (243.5) $ 61.2 $ 0.2 $ (0.2) $ 61.2 Non-Floor Plan Interest 10.0 0.4 - 10.4 11.8 0.5 - 12.3 Depreciation And Amortization 20.1 2.7 - 22.8 20.8 2.4 - 23.2 Stock-Based Compensation Expense 2.4 - - 2.4 2.8 - - 2.8 Loss (Gain) On Exit Of Leased Dealerships - - - - (0.2) - - (0.2) Impairment Charges 268.0 - - 268.0 - 1.9 - 1.9 Gain On Franchise Disposals - - - - (46.7) - - (46.7) Adjusted EBITDA $ 55.2 $ 5.2 $ (0.3) $ 60.1 $ 49.7 $ 5.0 $ (0.2) $ 54.5 Q1 2020 Q1 2019 Non-GAAP Reconciliation – Adjusted EBITDA By Segment
40 Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total (In millions) (In millions) Net Income (Loss) $ 46.3 $ 21.8 Provision For Income Taxes 14.7 9.2 Income (Loss) Before Taxes $ 75.5 $ (14.5) $ - $ 61.0 $ 37.4 $ (6.2) $ (0.2) $ 31.0 Non-Floor Plan Interest 12.2 0.4 - 12.6 12.9 0.4 0.1 13.4 Depreciation And Amortization 21.0 2.8 - 23.8 21.1 2.2 - 23.3 Stock-Based Compensation Expense 2.7 - - 2.7 1.3 - - 1.3 Loss (Gain) On Exit Of Leased Dealerships - - - - (1.1) - 0.1 (1.0) Impairment Charges 1.1 16.6 - 17.7 14.1 1.5 - 15.6 Loss On Debt Extinguishment 6.7 - - 6.7 - - - - Gain On Franchise Disposals (29.2) - - (29.2) (0.2) - - (0.2) Adjusted EBITDA $ 90.0 $ 5.3 $ - $ 95.3 $ 85.5 $ (2.1) $ - $ 83.4 Q4 2019 Q4 2018 Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total (In millions) (In millions) Net Income (Loss) $ 29.0 $ 15.1 Provision For Income Taxes $ 11.3 7.3 Income (Loss) Before Taxes $ 38.4 $ 2.1 $ (0.2) $ 40.3 $ 28.1 $ (5.5) $ (0.2) $ 22.4 Non-Floor Plan Interest $ 11.9 $ 0.5 - 12.4 12.3 0.5 0.1 12.9 Depreciation And Amortization $ 21.6 $ 2.7 - 24.3 22.1 2.0 - 24.1 Stock-Based Compensation Expense $ 2.7 - - 2.7 4.6 - - 4.6 Loss (Gain) On Exit Of Leased Dealerships - - - - - - 0.1 0.1 Impairment Charges - $ 1.1 - 1.1 - - - - Gain On Franchise Disposals $ 0.8 - - 0.8 - - - - Adjusted EBITDA $ 75.4 $ 6.4 $ (0.2) $ 81.6 $ 67.1 $ (3.0) $ (0.0) $ 64.1 Q3 2019 Q3 2018 Non-GAAP Reconciliation – Adjusted EBITDA By Segment
41 Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total (In millions) (In millions) Net Income (Loss) $ 42.2 $ (2.2) Provision For Income Taxes 19.0 (1.9) Income (Loss) Before Taxes $ 61.2 $ 0.2 $ (0.2) $ 61.2 $ 10.8 $ (14.7) $ (0.2) $ (4.1) Non-Floor Plan Interest 11.8 0.5 - 12.3 12.4 0.3 0.1 12.8 Depreciation And Amortization 20.8 2.4 - 23.2 22.8 1.7 - 24.5 Stock-Based Compensation Expense 2.8 - - 2.8 3.0 - - 3.0 Loss (Gain) On Exit Of Leased Dealerships (0.2) - - (0.2) 5.0 - 0.1 5.1 Impairment Charges - 1.9 - 1.9 3.6 0.1 - 3.7 Long-Term Compensation Charges - - - - - 9.2 - 9.2 Gain On Franchise Disposals (46.7) - - (46.7) (1.2) - - (1.2) Adjusted EBITDA $ 49.7 $ 5.0 $ (0.2) $ 54.5 $ 56.4 $ (3.4) $ - $ 53.0 Q1 2019 Q1 2018 Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total (In millions) (In millions) Net Income (Loss) $ 26.6 $ 16.9 Provision For Income Taxes $ 10.0 8.1 Income (Loss) Before Taxes $ 35.1 $ 1.7 $ (0.2) $ 36.6 $ 53.2 $ (27.8) $ (0.4) $ 25.0 Non-Floor Plan Interest $ 12.6 $ 0.4 - 13.0 12.3 0.4 0.1 12.8 Depreciation And Amortization $ 21.7 $ 2.7 - 24.4 22.8 1.9 - 24.7 Stock-Based Compensation Expense $ 2.6 - - 2.6 3.0 - - 3.0 Loss (Gain) On Exit Of Leased Dealerships - - - - (2.6) - 0.1 (2.5) Impairment Charges - - - - 10.3 - - 10.3 Long-Term Compensation Charges - - - - - 23.3 - 23.3 Gain On Franchise Disposals $ 0.4 - - 0.4 (38.0) - - (38.0) Adjusted EBITDA $ 72.4 $ 4.8 $ (0.2) $ 77.0 $ 61.0 $ (2.2) $ (0.2) $ 58.6 Q2 2019 Q2 2018 Non-GAAP Reconciliation – Adjusted EBITDA By Segment
42 Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total (In millions) (In millions) Net Income (Loss) $ 21.8 $ 62.0 Provision For Income Taxes 9.2 (8.4) Income (Loss) Before Taxes $ 37.4 $ (6.2) $ (0.2) $ 31.0 $ 57.8 $ (4.0) $ (0.2) $ 53.6 Non-Floor Plan Interest 12.9 0.4 0.1 13.4 12.4 0.3 0.1 12.8 Depreciation And Amortization 21.1 2.2 - 23.3 22.6 1.3 - 23.9 Stock-Based Compensation Expense 1.3 - - 1.3 2.2 - - 2.2 Loss (Gain) On Exit Of Leased Dealerships (1.1) - 0.1 (1.0) - - 0.1 0.1 Impairment Charges 14.1 1.5 - 15.6 6.1 - - 6.1 Long-Term Compensation Charges - - - - - 1.3 - 1.3 Gain On Franchise Disposals (0.2) - - (0.2) (1.5) - - (1.5) Adjusted EBITDA $ 85.5 $ (2.1) $ - $ 83.4 $ 99.6 $ (1.1) $ 0.0 $ 98.5 Q4 2018 Q4 2017 Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total Franchised Dealerships Segment EchoPark Segment Discontinued Operations Total (In millions) (In millions) Net Income (Loss) $ 15.1 $ 19.4 Provision For Income Taxes 7.3 13.9 Income (Loss) Before Taxes $ 28.1 $ (5.5) $ (0.2) $ 22.4 $ 38.2 $ (4.4) $ (0.5) $ 33.3 Non-Floor Plan Interest 12.3 0.5 0.1 12.9 12.1 0.3 0.1 12.5 Depreciation And Amortization 22.1 2.0 - 24.1 22.2 1.3 - 23.5 Stock-Based Compensation Expense 4.6 - - 4.6 3.2 - - 3.2 Loss (Gain) On Exit Of Leased Dealerships - - 0.1 0.1 (0.2) - 0.4 0.2 Impairment Charges - - - - 0.2 - - 0.2 Gain On Franchise Disposals - - - - (8.5) - - (8.5) Adjusted EBITDA $ 67.1 $ (3.0) $ (0.0) $ 64.1 $ 67.2 $ (2.8) $ - $ 64.4 Q3 2018 Q3 2017 Non-GAAP Reconciliation – Adjusted EBITDA By Segment
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® Investor Relations Contacts: Sonic Automotive Inc. (NYSE: SAH) Danny Wieland, Vice President, Investor Relations & Financial Reporting ir@sonicautomotive.com (704) 927-3462 KCSA Strategic Communications David Hanover / Scott Eckstein sonic@kcsa.com (212) 896-1220