SAH 8-K
Sonic Automotive Inc (SAH)
8-K
2024-08-05
For: 2024-08-05
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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): August 5, 2024
____________________________________
(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 August 5, 2024, Sonic Automotive, Inc. (the “Company”) issued a press release announcing its financial results for its fiscal second quarter ended June 30, 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 August 5, 2024, 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. | ||||||||
| August 5, 2024 | By: | /s/ STEPHEN K. COSS | ||||||
| Stephen K. Coss | ||||||||
| Senior Vice President and General Counsel | ||||||||
Exhibit 99.1
Sonic Automotive Reports Second Quarter 2024 Financial Results
EchoPark Reported Record Second Quarter Adjusted EBITDA*
The CDK Global Software Outage Is Estimated To Have Reduced Second Quarter GAAP Income Before Taxes By Approximately $30.0 Million, Or $0.64 In GAAP Diluted Earnings Per Share
CHARLOTTE, N.C. – August 5, 2024 – Sonic Automotive, Inc. (“Sonic Automotive,” “Sonic,” the “Company,” “we” “us” or “our”) (NYSE:SAH), one of the nation’s largest automotive retailers, today reported financial results for the second quarter ended June 30, 2024.
Second Quarter 2024 Financial Summary
•Total revenues of $3.5 billion, down 5% year-over-year; total gross profit of $539.1 million, down 5% year-over-year
•Reported net income of $41.2 million, up 76% year-over-year ($1.18 earnings per diluted share, up 82% year-over-year)
▪Reported net income includes the pre-tax effects of $11.6 million in excess compensation expense related to the CDK outage, a $3.6 million charge related to hail and storm damage, a $1.4 million impairment charge related to real estate held for sale at previously closed EchoPark Segment stores, and $0.7 million in severance expense, offset partially by a $3.6 million gain related to exit of leases and sale of real estate at previously closed EchoPark Segment stores, net of a $3.6 million tax benefit on the above net charges
▪Excluding these items, adjusted net income* was $51.3 million, down 22% year-over-year ($1.47 adjusted earnings per diluted share*, down 20% year-over-year)
•Total reported selling, general and administrative (“SG&A”) expenses as a percentage of gross profit of 72.9% (72.9% on a Franchised Dealerships Segment basis, 72.9% on an EchoPark Segment basis, and 73.7% on a Powersports Segment basis)
▪Total adjusted SG&A expenses as a percentage of gross profit* of 70.7% (69.9% on a Franchised Dealerships Segment basis, 77.7% on an EchoPark Segment basis, and 73.7% on a Powersports Segment basis)
•EchoPark Segment revenues of $517.3 million, down 14% year-over-year; record second quarter EchoPark Segment total gross profit of $51.1 million, up 91% year-over-year; EchoPark Segment retail used vehicle unit sales volume of 16,641, down 3% year-over-year
•Reported EchoPark Segment income of $3.9 million and adjusted EchoPark Segment income* of $1.4 million
•EchoPark Segment adjusted EBITDA* of $7.2 million, up 123% year-over-year
•Excluding closed stores, EchoPark Segment adjusted EBITDA* was $9.0 million, a 149% improvement year-over-year
•The CDK Global software outage is estimated to have reduced second quarter GAAP income before taxes by approximately $30.0 million, and net income by approximately $22.2 million, or $0.64 in diluted earnings per share
◦Approximately $11.6 million ($0.25 in diluted earnings per share) of the pre-tax CDK impact was related to excess compensation paid to our teammates as a result of the CDK outage, which is included as a reconciling item in the non-GAAP reconciliation tables below
* Represents a non-GAAP financial measure — please refer to the discussion and reconciliation of non-GAAP financial measures below.
Commentary
David Smith, Chairman and Chief Executive Officer of Sonic Automotive, stated, “I'm pleased to report that we continued to make great progress in our EchoPark Segment performance in the second quarter, with record second quarter Adjusted EBITDA* that outpaced our previous projections and sets the stage for continued growth in the second half of 2024 and beyond. Overall, the Sonic Automotive team continued to execute at a high level, despite operational challenges in the last 12 days of the second quarter as a result of the previously announced CDK Global (“CDK”) software outage. As of today, Sonic's access to the information systems provided by CDK has been restored, however we experienced operational disruptions throughout July related to the functionality of certain CDK customer lead applications, inventory management applications and related third-party application integrations with CDK. As a result of the business disruption caused by the CDK outage, we estimate our second quarter GAAP income before taxes was negatively impacted by approximately $30 million, or $0.64 in diluted earnings per share.”
Jeff Dyke, President of Sonic Automotive, commented, “Despite the short-term operational challenges associated with the CDK outage, our team remains dedicated to delivering an outstanding guest experience and executing our long-term strategic vision. Throughout the second quarter, we made great progress on our net 300 technician hiring initiative and continued to see improvement in our used vehicle business in both the Franchised Dealerships and EchoPark Segments. Given the used vehicle market's continued improvement, we maintain our guidance for positive quarterly EchoPark Segment adjusted EBITDA* for the remainder of 2024, which is expected to help mitigate the continuing effects of margin normalization in our Franchised Dealerships Segment on consolidated earnings potential.”
Heath Byrd, Chief Financial Officer of Sonic Automotive, added, “Our diversified cash flow streams continued to benefit our overall financial position in the second quarter, despite operational disruption from the CDK outage. As of June 30, 2024, we had $467 million in cash and floor plan deposits on hand, and approximately $885 million of total liquidity, before considering unencumbered real estate. We continue to maintain a conservative balance sheet approach, with the ability to deploy capital strategically as market conditions evolve.”
Second Quarter 2024 Segment Highlights
The financial measures discussed below are results for the second quarter of 2024 with comparisons made to the second quarter of 2023, unless otherwise noted.
•Franchised Dealerships Segment operating results include:
•Same store revenues down 3%; same store gross profit down 9%
•Same store retail new vehicle unit sales volume down 2%; same store retail new vehicle gross profit per unit down 29%, to $3,590
•Same store retail used vehicle unit sales volume up 3%; same store retail used vehicle gross profit per unit down 14%, to $1,524
•Same store parts, service and collision repair (“Fixed Operations”) gross profit up 2%; same store customer pay gross profit up 2%; same store warranty gross profit up 13%; same store Fixed Operations gross profit margin up 80 basis points, to 50.4%
•Same store finance and insurance ("F&I") gross profit down 5%; same store F&I gross profit per retail unit of $2,380, down 6%
•On a trailing quarter cost of sales basis, the Franchised Dealerships Segment had 59 days’ supply of new vehicle inventory (including in-transit) and 30 days’ supply of used vehicle inventory
•EchoPark Segment operating results include:
•Revenues of $517.3 million, down 14%; gross profit of $51.1 million, up 91%
◦On a same market basis (which excludes closed stores), revenues were up 10% and gross profit was up 81%
•Retail used vehicle unit sales volume of 16,641, down 3%
◦On a same market basis (which excludes closed stores), retail used vehicle unit sales volume was up 23%
•Reported segment income of $3.9 million, adjusted segment income* of $1.4 million, and adjusted EBITDA* of $7.2 million
•Reported segment income includes $0.9 million income related to closed stores (closed stores represent a $1.9 million loss on an adjusted segment loss* basis and a $1.8 million loss on an adjusted EBITDA* basis)
•Excluding closed stores, reported segment income was $3.0 million, adjusted segment income* was $3.3 million, and adjusted EBITDA* was $9.0 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 $39.6 million, down 12%; gross profit of $10.7 million, down 16%
•Segment income of $0.5 million and adjusted EBITDA* of $2.3 million
* Represents a non-GAAP financial measure - please refer to the discussion and reconciliation of non-GAAP financial measures below.
Dividend
Sonic’s Board of Directors approved a quarterly cash dividend of $0.30 per share, payable on October 15, 2024 to all stockholders of record on September 13, 2024.
Second Quarter 2024 Earnings Conference Call
Senior management will hold a conference call today at 10:00 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 Second Quarter 2024 Earnings Conference Call. Dial-in access remains available throughout the live call; however, to ensure you are connected for the full call we suggest dialing in at least 10 minutes before the start of the call. A webcast replay will be available following the call for 14 days at ir.sonicautomotive.com.
About Sonic Automotive
Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, North Carolina, is on a quest to become the most valuable diversified automotive retail and service brand in America. Our Company culture thrives on creating, innovating, and providing industry-leading guest experiences, driven by strategic investments in technology, teammates, and ideas that ultimately fulfill ownership dreams, enrich lives, and deliver happiness to our guests and teammates. As one of the largest automotive and powersports retailers in America, we are committed to delivering on this goal while pursuing expansive growth and taking progressive measures to be the leader in these categories. Our new platforms, programs, and people are set to drive the next generation of automotive and powersports experiences. More information about Sonic Automotive can be found at www.sonicautomotive.com and ir.sonicautomotive.com.
About EchoPark Automotive
EchoPark Automotive is one of the most comprehensive retailers of nearly new pre-owned vehicles in America today. Our unique business model offers a best-in-class shopping and utilizes one of the most innovative technology-enabled sales strategies in our industry. Our approach provides a personalized and proven guest-centric buying process that consistently delivers award-winning guest experiences and superior value to car buyers nationwide, with savings of up to $3,000 versus the competition. Consumers have responded by putting EchoPark among the top national pre-owned vehicle retailers in products, sales, and service, while receiving the 2023 Consumer Satisfaction Award from DealerRater. EchoPark’s mission is in the name: Every Car, Happy Owner. This drives the experience for guests and differentiates EchoPark from the competition. More information about EchoPark Automotive can be found at www.echopark.com.
Forward-Looking Statements
Included herein are forward-looking statements, including statements regarding the CDK outage, anticipated future EchoPark profitability and anticipated future EchoPark adjusted EBITDA. There are many factors that affect management’s views about future events and trends of the Company’s business. These factors involve risks and uncertainties that could cause actual results or trends to differ materially from management’s views, including, without limitation, the ultimate impact of the CDK outage on the Company, economic conditions in the markets in which we operate, supply chain disruptions and manufacturing delays, labor shortages, the impacts of inflation and increases in interest rates, new and used vehicle industry sales volume, future levels of consumer demand for new and used vehicles, anticipated future growth in each of our operating segments, the success of our operational strategies, the rate and timing of overall economic expansion or contraction, the integration of recent or future acquisitions, and the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and other reports and information filed with the United States Securities and Exchange Commission (the “SEC”). The Company does not undertake any obligation to update forward-looking information, except as required under federal securities laws and the rules and regulations of the SEC. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
Non-GAAP Financial Measures
This press release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as adjusted net income, adjusted earnings per diluted share, adjusted SG&A expenses as a percentage of gross profit, adjusted segment income, and adjusted EBITDA. As required by SEC rules, the Company has provided reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures in the schedules included in this press release. The Company believes that these non-GAAP financial measures improve the transparency of the Company’s disclosures and provide a meaningful presentation of the Company’s results.
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 June 30, | Better / (Worse) | Six Months Ended June 30, | Better / (Worse) | ||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||
| (In millions, except per share amounts) | |||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | $ | 1,552.6 | $ | 1,608.2 | (3) | % | $ | 3,008.4 | $ | 3,051.0 | (1) | % | |||||||||||||||||||||||
| Fleet new vehicles | 26.2 | 28.3 | (7) | % | 45.8 | 47.1 | (3) | % | |||||||||||||||||||||||||||
| Total new vehicles | 1,578.8 | 1,636.5 | (4) | % | 3,054.2 | 3,098.1 | (1) | % | |||||||||||||||||||||||||||
| Used vehicles | 1,186.2 | 1,305.9 | (9) | % | 2,401.8 | 2,650.8 | (9) | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 71.3 | 91.5 | (22) | % | 148.6 | 177.0 | (16) | % | |||||||||||||||||||||||||||
| Total vehicles | 2,836.3 | 3,033.9 | (7) | % | 5,604.6 | 5,925.9 | (5) | % | |||||||||||||||||||||||||||
| Parts, service and collision repair | 444.1 | 443.7 | — | % | 890.8 | 874.2 | 2 | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 172.6 | 175.3 | (2) | % | 341.6 | 344.0 | (1) | % | |||||||||||||||||||||||||||
| Total revenues | 3,453.0 | 3,652.9 | (5) | % | 6,837.0 | 7,144.1 | (4) | % | |||||||||||||||||||||||||||
| Cost of sales: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | (1,454.8) | (1,466.8) | 1 | % | (2,814.2) | (2,771.5) | (2) | % | |||||||||||||||||||||||||||
| Fleet new vehicles | (25.2) | (27.0) | 7 | % | (44.1) | (45.0) | 2 | % | |||||||||||||||||||||||||||
| Total new vehicles | (1,480.0) | (1,493.8) | 1 | % | (2,858.3) | (2,816.5) | (1) | % | |||||||||||||||||||||||||||
| Used vehicles | (1,141.5) | (1,274.4) | 10 | % | (2,310.1) | (2,589.3) | 11 | % | |||||||||||||||||||||||||||
| Wholesale vehicles | (71.9) | (92.5) | 22 | % | (149.9) | (174.9) | 14 | % | |||||||||||||||||||||||||||
| Total vehicles | (2,693.4) | (2,860.7) | 6 | % | (5,318.3) | (5,580.7) | 5 | % | |||||||||||||||||||||||||||
| Parts, service and collision repair | (220.5) | (223.3) | 1 | % | (443.4) | (440.9) | (1) | % | |||||||||||||||||||||||||||
| Total cost of sales | (2,913.9) | (3,084.0) | 6 | % | (5,761.7) | (6,021.6) | 4 | % | |||||||||||||||||||||||||||
| Gross profit | 539.1 | 568.9 | (5) | % | 1,075.3 | 1,122.5 | (4) | % | |||||||||||||||||||||||||||
| Selling, general and administrative expenses | (393.0) | (391.9) | — | % | (785.3) | (804.7) | 2 | % | |||||||||||||||||||||||||||
| Impairment charges | (1.4) | (62.6) | NM | (2.4) | (62.6) | NM | |||||||||||||||||||||||||||||
| Depreciation and amortization | (37.0) | (36.1) | (2) | % | (73.2) | (70.5) | (4) | % | |||||||||||||||||||||||||||
| Operating income (loss) | 107.7 | 78.3 | 38 | % | 214.4 | 184.7 | 16 | % | |||||||||||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||||||||||||||
| Interest expense, floor plan | (22.2) | (17.0) | (31) | % | (42.5) | (31.5) | (35) | % | |||||||||||||||||||||||||||
| Interest expense, other, net | (29.3) | (28.9) | (1) | % | (58.3) | (57.3) | (2) | % | |||||||||||||||||||||||||||
| Other income (expense), net | (0.5) | 0.1 | NM | (0.4) | 0.2 | NM | |||||||||||||||||||||||||||||
| Total other income (expense) | (52.0) | (45.8) | (14) | % | (101.2) | (88.6) | (14) | % | |||||||||||||||||||||||||||
| Income (loss) before taxes | 55.7 | 32.5 | 71 | % | 113.2 | 96.1 | 18 | % | |||||||||||||||||||||||||||
| Provision for income taxes - benefit (expense) | (14.5) | (9.1) | (59) | % | (30.0) | (25.0) | (20) | % | |||||||||||||||||||||||||||
| Net income (loss) | $ | 41.2 | $ | 23.4 | 76 | % | $ | 83.2 | $ | 71.1 | 17 | % | |||||||||||||||||||||||
| Basic earnings (loss) per common share | $ | 1.21 | $ | 0.66 | 83 | % | $ | 2.45 | $ | 2.00 | 23 | % | |||||||||||||||||||||||
| Basic weighted-average common shares outstanding | 34.0 | 35.3 | 4 | % | 34.0 | 35.6 | 4 | % | |||||||||||||||||||||||||||
| Diluted earnings (loss) per common share | $ | 1.18 | $ | 0.65 | 82 | % | $ | 2.39 | $ | 1.95 | 23 | % | |||||||||||||||||||||||
| Diluted weighted-average common shares outstanding | 34.9 | 36.0 | 3 | % | 34.8 | 36.5 | 5 | % | |||||||||||||||||||||||||||
| Dividends declared per common share | $ | 0.30 | $ | 0.29 | 3 | % | $ | 0.60 | $ | 0.57 | 5 | % | |||||||||||||||||||||||
NM = Not Meaningful
Franchised Dealerships Segment - Reported
| Three Months Ended June 30, | Better / (Worse) | Six Months Ended June 30, | Better / (Worse) | ||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||
| (In millions, except unit and per unit data) | |||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | $ | 1,530.9 | $ | 1,583.3 | (3) | % | $ | 2,970.8 | $ | 3,004.3 | (1) | % | |||||||||||||||||||||||
| Fleet new vehicles | 26.2 | 28.3 | (7) | % | 45.8 | 47.1 | (3) | % | |||||||||||||||||||||||||||
| Total new vehicles | 1,557.1 | 1,611.6 | (3) | % | 3,016.6 | 3,051.4 | (1) | % | |||||||||||||||||||||||||||
| Used vehicles | 732.1 | 774.5 | (5) | % | 1,461.4 | 1,542.0 | (5) | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 48.4 | 55.6 | (13) | % | 96.9 | 114.0 | (15) | % | |||||||||||||||||||||||||||
| Total vehicles | 2,337.6 | 2,441.7 | (4) | % | 4,574.9 | 4,707.4 | (3) | % | |||||||||||||||||||||||||||
| Parts, service and collision repair | 434.4 | 433.4 | — | % | 874.3 | 857.2 | 2 | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 124.2 | 132.2 | (6) | % | 243.8 | 249.4 | (2) | % | |||||||||||||||||||||||||||
| Total revenues | 2,896.2 | 3,007.3 | (4) | % | 5,693.0 | 5,814.0 | (2) | % | |||||||||||||||||||||||||||
| Gross Profit: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | 94.9 | 136.9 | (31) | % | 189.0 | 270.9 | (30) | % | |||||||||||||||||||||||||||
| Fleet new vehicles | 1.0 | 1.3 | (23) | % | 1.7 | 2.1 | (19) | % | |||||||||||||||||||||||||||
| Total new vehicles | 95.9 | 138.2 | (31) | % | 190.7 | 273.0 | (30) | % | |||||||||||||||||||||||||||
| Used vehicles | 38.7 | 44.5 | (13) | % | 79.6 | 85.3 | (7) | % | |||||||||||||||||||||||||||
| Wholesale vehicles | (0.5) | (1.0) | 50 | % | (0.7) | 1.0 | (170) | % | |||||||||||||||||||||||||||
| Total vehicles | 134.1 | 181.7 | (26) | % | 269.6 | 359.3 | (25) | % | |||||||||||||||||||||||||||
| Parts, service and collision repair | 219.0 | 215.4 | 2 | % | 439.7 | 425.0 | 3 | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 124.2 | 132.2 | (6) | % | 243.8 | 249.4 | (2) | % | |||||||||||||||||||||||||||
| Total gross profit | 477.3 | 529.3 | (10) | % | 953.1 | 1,033.7 | (8) | % | |||||||||||||||||||||||||||
| Selling, general and administrative expenses | (347.9) | (316.1) | (10) | % | (686.4) | (647.3) | (6) | % | |||||||||||||||||||||||||||
| Impairment charges | — | — | NM | (1.0) | — | NM | |||||||||||||||||||||||||||||
| Depreciation and amortization | (30.4) | (27.9) | (9) | % | (60.2) | (54.5) | (10) | % | |||||||||||||||||||||||||||
| Operating income (loss) | 99.0 | 185.3 | (47) | % | 205.5 | 331.9 | (38) | % | |||||||||||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||||||||||||||
| Interest expense, floor plan | (18.0) | (11.9) | (51) | % | (34.0) | (21.8) | (56) | % | |||||||||||||||||||||||||||
| Interest expense, other, net | (27.8) | (27.5) | (1) | % | (55.6) | (54.4) | (2) | % | |||||||||||||||||||||||||||
| Other income (expense), net | (0.5) | — | NM | (0.5) | 0.1 | NM | |||||||||||||||||||||||||||||
| Total other income (expense) | (46.3) | (39.4) | (18) | % | (90.1) | (76.1) | (18) | % | |||||||||||||||||||||||||||
| Income (loss) before taxes | 52.7 | 145.9 | (64) | % | 115.4 | 255.8 | (55) | % | |||||||||||||||||||||||||||
| Add: Impairment charges | — | — | NM | 1.0 | — | NM | |||||||||||||||||||||||||||||
| Segment income (loss) | $ | 52.7 | $ | 145.9 | (64) | % | $ | 116.4 | $ | 255.8 | (54) | % | |||||||||||||||||||||||
| Unit Sales Volume: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | 26,512 | 27,358 | (3) | % | 51,809 | 51,897 | — | % | |||||||||||||||||||||||||||
| Fleet new vehicles | 514 | 590 | (13) | % | 893 | 1,031 | (13) | % | |||||||||||||||||||||||||||
| Total new vehicles | 27,026 | 27,948 | (3) | % | 52,702 | 52,928 | — | % | |||||||||||||||||||||||||||
| Used vehicles | 25,668 | 25,197 | 2 | % | 51,334 | 50,304 | 2 | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 5,248 | 5,516 | (5) | % | 10,353 | 10,999 | (6) | % | |||||||||||||||||||||||||||
| Retail new & used vehicles | 52,180 | 52,555 | (1) | % | 103,143 | 102,201 | 1 | % | |||||||||||||||||||||||||||
| Used-to-New Ratio | 0.97 | 0.92 | 5 | % | 0.99 | 0.97 | 2 | % | |||||||||||||||||||||||||||
| Gross Profit Per Unit: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | $ | 3,579 | $ | 5,003 | (28) | % | $ | 3,649 | $ | 5,221 | (30) | % | |||||||||||||||||||||||
| Fleet new vehicles | $ | 1,885 | $ | 2,099 | (10) | % | $ | 1,809 | $ | 2,065 | (12) | % | |||||||||||||||||||||||
| New vehicles | $ | 3,547 | $ | 4,942 | (28) | % | $ | 3,618 | $ | 5,159 | (30) | % | |||||||||||||||||||||||
| Used vehicles | $ | 1,508 | $ | 1,765 | (15) | % | $ | 1,550 | $ | 1,695 | (9) | % | |||||||||||||||||||||||
| Finance, insurance and other, net | $ | 2,380 | $ | 2,516 | (5) | % | $ | 2,364 | $ | 2,440 | (3) | % | |||||||||||||||||||||||
NM = Not Meaningful
Note: Reported Franchised Dealerships Segment results include (i) same store results from the “Franchised Dealerships Segment - Same Store” table below and (ii) the effects of acquisitions, open points, dispositions and holding company impacts for the periods reported. All currently operating franchised dealership stores are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition.
Franchised Dealerships Segment - Same Store
| Three Months Ended June 30, | Better / (Worse) | Six Months Ended June 30, | Better / (Worse) | ||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||
| (In millions, except unit and per unit data) | |||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | $ | 1,530.6 | $ | 1,566.5 | (2) | % | $ | 2,964.6 | $ | 2,964.3 | — | % | |||||||||||||||||||||||
| Fleet new vehicles | 26.2 | 28.4 | (8) | % | 45.8 | 47.2 | (3) | % | |||||||||||||||||||||||||||
| Total new vehicles | 1,556.8 | 1,594.9 | (2) | % | 3,010.4 | 3,011.5 | — | % | |||||||||||||||||||||||||||
| Used vehicles | 731.9 | 766.2 | (4) | % | 1,457.0 | 1,519.8 | (4) | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 48.3 | 54.7 | (12) | % | 96.5 | 112.1 | (14) | % | |||||||||||||||||||||||||||
| Total vehicles | 2,337.0 | 2,415.8 | (3) | % | 4,563.9 | 4,643.4 | (2) | % | |||||||||||||||||||||||||||
| Parts, service and collision repair | 434.3 | 430.0 | 1 | % | 872.6 | 847.5 | 3 | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 124.2 | 130.9 | (5) | % | 243.4 | 246.2 | (1) | % | |||||||||||||||||||||||||||
| Total revenues | 2,895.5 | 2,976.7 | (3) | % | 5,679.9 | 5,737.1 | (1) | % | |||||||||||||||||||||||||||
| Gross Profit: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | 95.1 | 135.7 | (30) | % | 188.8 | 267.8 | (29) | % | |||||||||||||||||||||||||||
| Fleet new vehicles | 1.0 | 1.2 | (17) | % | 1.6 | 2.1 | (24) | % | |||||||||||||||||||||||||||
| Total new vehicles | 96.1 | 136.9 | (30) | % | 190.4 | 269.9 | (29) | % | |||||||||||||||||||||||||||
| Used vehicles | 39.1 | 44.3 | (12) | % | 79.6 | 84.3 | (6) | % | |||||||||||||||||||||||||||
| Wholesale vehicles | (0.5) | (0.5) | — | % | (0.6) | 1.4 | (143) | % | |||||||||||||||||||||||||||
| Total vehicles | 134.7 | 180.7 | (25) | % | 269.4 | 355.6 | (24) | % | |||||||||||||||||||||||||||
| Parts, service and collision repair | 218.8 | 213.5 | 2 | % | 438.2 | 419.6 | 4 | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 124.2 | 130.9 | (5) | % | 243.4 | 246.2 | (1) | % | |||||||||||||||||||||||||||
| Total gross profit | $ | 477.7 | $ | 525.1 | (9) | % | $ | 951.0 | $ | 1,021.4 | (7) | % | |||||||||||||||||||||||
| Unit Sales Volume: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | 26,505 | 26,953 | (2) | % | 51,688 | 50,975 | 1 | % | |||||||||||||||||||||||||||
| Fleet new vehicles | 514 | 590 | (13) | % | 893 | 1,031 | (13) | % | |||||||||||||||||||||||||||
| Total new vehicles | 27,019 | 27,543 | (2) | % | 52,581 | 52,006 | 1 | % | |||||||||||||||||||||||||||
| Used vehicles | 25,660 | 24,873 | 3 | % | 51,169 | 49,454 | 3 | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 5,243 | 5,430 | (3) | % | 10,317 | 10,812 | (5) | % | |||||||||||||||||||||||||||
| Retail new & used vehicles | 52,165 | 51,826 | 1 | % | 102,857 | 100,429 | 2 | % | |||||||||||||||||||||||||||
| Used-to-New Ratio | 0.97 | 0.90 | 8 | % | 0.99 | 0.95 | 4 | % | |||||||||||||||||||||||||||
| Gross Profit Per Unit: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | $ | 3,590 | $ | 5,033 | (29) | % | $ | 3,653 | $ | 5,254 | (30) | % | |||||||||||||||||||||||
| Fleet new vehicles | $ | 1,885 | $ | 2,099 | (10) | % | $ | 1,809 | $ | 2,065 | (12) | % | |||||||||||||||||||||||
| New vehicles | $ | 3,557 | $ | 4,970 | (28) | % | $ | 3,622 | $ | 5,191 | (30) | % | |||||||||||||||||||||||
| Used vehicles | $ | 1,524 | $ | 1,779 | (14) | % | $ | 1,555 | $ | 1,705 | (9) | % | |||||||||||||||||||||||
| Finance, insurance and other, net | $ | 2,380 | $ | 2,526 | (6) | % | $ | 2,366 | $ | 2,451 | (3) | % | |||||||||||||||||||||||
Note: All currently operating franchised dealership stores are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition.
EchoPark Segment - Reported
| Three Months Ended June 30, | Better / (Worse) | Six Months Ended June 30, | Better / (Worse) | ||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||
| (In millions, except unit and per unit data) | |||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | $ | — | $ | — | — | % | $ | — | $ | 1.0 | (100) | % | |||||||||||||||||||||||
| Used vehicles | 448.9 | 524.0 | (14) | % | 931.7 | 1,096.5 | (15) | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 21.9 | 35.5 | (38) | % | 50.7 | 62.5 | (19) | % | |||||||||||||||||||||||||||
| Total vehicles | 470.8 | 559.5 | (16) | % | 982.4 | 1,160.0 | (15) | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 46.5 | 41.1 | 13 | % | 94.3 | 91.1 | 4 | % | |||||||||||||||||||||||||||
| Total revenues | 517.3 | 600.6 | (14) | % | 1,076.7 | 1,251.1 | (14) | % | |||||||||||||||||||||||||||
| Gross Profit: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | — | — | — | % | — | 0.1 | (100) | % | |||||||||||||||||||||||||||
| Used vehicles | 4.7 | (14.3) | 133 | % | 10.0 | (26.2) | 138 | % | |||||||||||||||||||||||||||
| Wholesale vehicles | (0.1) | — | (100) | % | (0.6) | 1.2 | (150) | % | |||||||||||||||||||||||||||
| Total vehicles | 4.6 | (14.3) | 132 | % | 9.4 | (24.9) | 138 | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 46.5 | 41.1 | 13 | % | 94.3 | 91.1 | 4 | % | |||||||||||||||||||||||||||
| Total gross profit | 51.1 | 26.8 | 91 | % | 103.7 | 66.2 | 57 | % | |||||||||||||||||||||||||||
| Selling, general and administrative expenses | (37.2) | (66.6) | 44 | % | (82.8) | (140.4) | 41 | % | |||||||||||||||||||||||||||
| Impairment charges | (1.4) | (62.6) | NM | (1.4) | (62.6) | NM | |||||||||||||||||||||||||||||
| Depreciation and amortization | (5.6) | (7.4) | 24 | % | (11.1) | (14.4) | 23 | % | |||||||||||||||||||||||||||
| Operating income (loss) | 6.9 | (109.8) | 106 | % | 8.4 | (151.2) | 106 | % | |||||||||||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||||||||||||||
| Interest expense, floor plan | (3.8) | (4.8) | 21 | % | (7.6) | (9.3) | 18 | % | |||||||||||||||||||||||||||
| Interest expense, other, net | (0.7) | (0.9) | 22 | % | (1.3) | (1.8) | 28 | % | |||||||||||||||||||||||||||
| Other income (expense), net | 0.1 | 0.1 | NM | — | — | NM | |||||||||||||||||||||||||||||
| Total other income (expense) | 4.4 | (5.6) | 179 | % | 8.9 | (11.1) | 180 | % | |||||||||||||||||||||||||||
| Income (loss) before taxes | 2.5 | (115.4) | 102 | % | (0.5) | (162.3) | 100 | % | |||||||||||||||||||||||||||
| Add: Impairment charges | 1.4 | 62.6 | NM | 1.4 | 62.6 | NM | |||||||||||||||||||||||||||||
| Segment income (loss) | $ | 3.9 | $ | (52.8) | 107 | % | $ | 0.9 | $ | (99.7) | 101 | % | |||||||||||||||||||||||
| Unit Sales Volume: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | — | — | — | % | — | 11 | (100) | % | |||||||||||||||||||||||||||
| Used vehicles | 16,641 | 17,084 | (3) | % | 34,622 | 37,064 | (7) | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 2,593 | 3,235 | (20) | % | 5,587 | 6,151 | (9) | % | |||||||||||||||||||||||||||
| Gross Profit Per Unit: | |||||||||||||||||||||||||||||||||||
| Total used vehicle and F&I | $ | 3,078 | $ | 1,569 | 96 | % | $ | 3,014 | $ | 1,750 | 72 | % | |||||||||||||||||||||||
NM = Not Meaningful
EchoPark Segment - Same Market
| Three Months Ended June 30, | Better / (Worse) | Six Months Ended June 30, | Better / (Worse) | ||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||
| (In millions, except unit and per unit data) | |||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Used vehicles | $ | 448.9 | $ | 410.0 | 9 | % | $ | 922.1 | $ | 843.7 | 9 | % | |||||||||||||||||||||||
| Wholesale vehicles | 21.9 | 26.3 | (17) | % | 47.4 | 44.2 | 7 | % | |||||||||||||||||||||||||||
| Total vehicles | 470.8 | 436.3 | 8 | % | 969.5 | 887.9 | 9 | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 47.3 | 32.6 | 45 | % | 94.8 | 70.9 | 34 | % | |||||||||||||||||||||||||||
| Total revenues | 518.1 | 468.9 | 10 | % | 1,064.3 | 958.8 | 11 | % | |||||||||||||||||||||||||||
| Gross Profit: | |||||||||||||||||||||||||||||||||||
| Used vehicles | 4.8 | (4.3) | 212 | % | 10.4 | (14.1) | 174 | % | |||||||||||||||||||||||||||
| Wholesale vehicles | (0.2) | 0.4 | (150) | % | — | 1.6 | (100) | % | |||||||||||||||||||||||||||
| Total vehicles | 4.6 | (3.9) | 218 | % | 10.4 | (12.5) | 183 | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 47.3 | 32.6 | 45 | % | 94.8 | 70.9 | 34 | % | |||||||||||||||||||||||||||
| Total gross profit | $ | 51.9 | $ | 28.7 | 81 | % | $ | 105.2 | $ | 58.4 | 80 | % | |||||||||||||||||||||||
| Unit Sales Volume: | |||||||||||||||||||||||||||||||||||
| Used vehicles | 16,641 | 13,529 | 23 | % | 34,259 | 29,080 | 18 | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 2,593 | 2,402 | 8 | % | 5,378 | 4,521 | 19 | % | |||||||||||||||||||||||||||
| Gross Profit Per Unit: | |||||||||||||||||||||||||||||||||||
| Total used vehicle and F&I | $ | 3,127 | $ | 2,091 | 50 | % | $ | 3,071 | $ | 1,953 | 57 | % | |||||||||||||||||||||||
Note: All currently operating EchoPark stores in a local geographic market are included within the same market group as of the first full month following the first anniversary of the market's opening.
Powersports Segment - Reported
| Three Months Ended June 30, | Better / (Worse) | Six Months Ended June 30, | Better / (Worse) | ||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||
| (In millions, except unit and per unit data) | |||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | $ | 21.7 | $ | 24.9 | (13) | % | $ | 37.5 | $ | 45.7 | (18) | % | |||||||||||||||||||||||
| Used vehicles | 5.3 | 7.4 | (28) | % | 8.7 | 12.3 | (29) | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 0.9 | 0.4 | 125 | % | 1.1 | 0.5 | 120 | % | |||||||||||||||||||||||||||
| Total vehicles | 27.9 | 32.7 | (15) | % | 47.3 | 58.5 | (19) | % | |||||||||||||||||||||||||||
| Parts, service and collision repair | 9.7 | 10.3 | (6) | % | 16.5 | 17.0 | (3) | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 2.0 | 2.0 | — | % | 3.5 | 3.5 | — | % | |||||||||||||||||||||||||||
| Total revenues | 39.6 | 45.0 | (12) | % | 67.3 | 79.0 | (15) | % | |||||||||||||||||||||||||||
| Gross Profit: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | 2.9 | 4.5 | (36) | % | 5.2 | 8.5 | (39) | % | |||||||||||||||||||||||||||
| Used vehicles | 1.3 | 1.3 | — | % | 2.2 | 2.4 | (8) | % | |||||||||||||||||||||||||||
| Wholesale vehicles | (0.1) | — | (100) | % | (0.1) | (0.1) | — | % | |||||||||||||||||||||||||||
| Total vehicles | 4.1 | 5.8 | (29) | % | 7.3 | 10.8 | (32) | % | |||||||||||||||||||||||||||
| Parts, service and collision repair | 4.6 | 5.0 | (8) | % | 7.7 | 8.3 | (7) | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 2.0 | 2.0 | — | % | 3.5 | 3.5 | — | % | |||||||||||||||||||||||||||
| Total gross profit | 10.7 | 12.8 | (16) | % | 18.5 | 22.6 | (18) | % | |||||||||||||||||||||||||||
| Selling, general and administrative expenses | (7.9) | (9.2) | 14 | % | (16.0) | (17.0) | 6 | % | |||||||||||||||||||||||||||
| Depreciation and amortization | (1.0) | (0.8) | (25) | % | (2.0) | (1.6) | (25) | % | |||||||||||||||||||||||||||
| Operating income (loss) | 1.8 | 2.8 | (36) | % | 0.5 | 4.0 | (88) | % | |||||||||||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||||||||||||||
| Interest expense, floor plan | (0.5) | (0.3) | (67) | % | (1.0) | (0.4) | (150) | % | |||||||||||||||||||||||||||
| Interest expense, other, net | (0.8) | (0.5) | (60) | % | (1.3) | (1.1) | (18) | % | |||||||||||||||||||||||||||
| Other income (expense), net | — | — | NM | 0.1 | 0.1 | NM | |||||||||||||||||||||||||||||
| Total other income (expense) | (1.3) | (0.8) | (63) | % | (2.2) | (1.4) | (57) | % | |||||||||||||||||||||||||||
| Income (loss) before taxes | 0.5 | 2.0 | (75) | % | (1.7) | 2.6 | (165) | % | |||||||||||||||||||||||||||
| Add: Impairment charges | — | — | NM | — | — | NM | |||||||||||||||||||||||||||||
| Segment income (loss) | $ | 0.5 | $ | 2.0 | (75) | % | $ | (1.7) | $ | 2.6 | (165) | % | |||||||||||||||||||||||
| Unit Sales Volume: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | 1,193 | 1,396 | (15) | % | 2,038 | 2,503 | (19) | % | |||||||||||||||||||||||||||
| Used vehicles | 522 | 691 | (24) | % | 931 | 1,135 | (18) | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 18 | 50 | (64) | % | 31 | 57 | (46) | % | |||||||||||||||||||||||||||
| Gross Profit Per Unit: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | $ | 2,466 | $ | 3,235 | (24) | % | $ | 2,553 | $ | 3,385 | (25) | % | |||||||||||||||||||||||
| Used vehicles | $ | 2,423 | $ | 1,942 | 25 | % | $ | 2,318 | $ | 2,093 | 11 | % | |||||||||||||||||||||||
| Finance, insurance and other, net | $ | 1,153 | $ | 952 | 21 | % | $ | 1,172 | $ | 964 | 22 | % | |||||||||||||||||||||||
NM = Not Meaningful
Powersports Segment - Same Store
| Three Months Ended June 30, | Better / (Worse) | Six Months Ended June 30, | Better / (Worse) | ||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||
| (In millions, except unit and per unit data) | |||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | $ | 21.7 | $ | 24.9 | (13) | % | $ | 37.0 | $ | 45.5 | (19) | % | |||||||||||||||||||||||
| Used vehicles | 5.3 | 7.4 | (28) | % | 8.0 | 11.8 | (32) | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 0.9 | 0.4 | 125 | % | 1.2 | 0.5 | 140 | % | |||||||||||||||||||||||||||
| Total vehicles | 27.9 | 32.7 | (15) | % | 46.2 | 57.8 | (20) | % | |||||||||||||||||||||||||||
| Parts, service and collision repair | 9.7 | 10.3 | (6) | % | 15.8 | 16.7 | (5) | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 2.0 | 2.0 | — | % | 3.4 | 3.5 | (3) | % | |||||||||||||||||||||||||||
| Total revenues | 39.6 | 45.0 | (12) | % | 65.4 | 78.0 | (16) | % | |||||||||||||||||||||||||||
| Gross Profit: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | 2.9 | 4.5 | (36) | % | 5.1 | 8.4 | (39) | % | |||||||||||||||||||||||||||
| Used vehicles | 1.3 | 1.3 | — | % | 2.0 | 2.3 | (13) | % | |||||||||||||||||||||||||||
| Wholesale vehicles | (0.1) | — | (100) | % | (0.1) | (0.1) | — | % | |||||||||||||||||||||||||||
| Total vehicles | 4.1 | 5.8 | (29) | % | 7.0 | 10.6 | (34) | % | |||||||||||||||||||||||||||
| Parts, service and collision repair | 4.6 | 5.0 | (8) | % | 7.4 | 8.2 | (10) | % | |||||||||||||||||||||||||||
| Finance, insurance and other, net | 2.0 | 2.0 | — | % | 3.4 | 3.5 | (3) | % | |||||||||||||||||||||||||||
| Total gross profit | $ | 10.7 | $ | 12.8 | (16) | % | $ | 17.8 | $ | 22.3 | (20) | % | |||||||||||||||||||||||
| Unit Sales Volume: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | 1,193 | 1,396 | (15) | % | 2,021 | 2,496 | (19) | % | |||||||||||||||||||||||||||
| Used vehicles | 522 | 691 | (24) | % | 858 | 1,092 | (21) | % | |||||||||||||||||||||||||||
| Wholesale vehicles | 18 | 50 | (64) | % | 28 | 56 | (50) | % | |||||||||||||||||||||||||||
| Retail new & used vehicles | 1,715 | 2,087 | (18) | % | 2,879 | 3,588 | (20) | % | |||||||||||||||||||||||||||
| Used-to-New Ratio | 0.44 | 0.49 | (10) | % | 0.42 | 0.44 | (5) | % | |||||||||||||||||||||||||||
| Gross Profit Per Unit: | |||||||||||||||||||||||||||||||||||
| Retail new vehicles | $ | 2,466 | $ | 3,235 | (24) | % | $ | 2,502 | $ | 3,373 | (26) | % | |||||||||||||||||||||||
| Used vehicles | $ | 2,423 | $ | 1,942 | 25 | % | $ | 2,336 | $ | 2,064 | 13 | % | |||||||||||||||||||||||
| Finance, insurance and other, net | $ | 1,153 | $ | 952 | 21 | % | $ | 1,182 | $ | 964 | 23 | % | |||||||||||||||||||||||
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 June 30, | Better / (Worse) | ||||||||||||||||||||||
| 2024 | 2023 | Change | % Change | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Compensation | $ | 250.9 | $ | 261.0 | $ | 10.1 | 4 | % | |||||||||||||||
| Advertising | 21.6 | 22.8 | 1.2 | 5 | % | ||||||||||||||||||
| Rent | 7.7 | 11.5 | 3.8 | 33 | % | ||||||||||||||||||
| Other | 112.8 | 96.6 | (16.2) | (17) | % | ||||||||||||||||||
| Total SG&A expenses | $ | 393.0 | $ | 391.9 | $ | (1.1) | — | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Acquisition and disposition-related gain (loss) | $ | 0.6 | $ | 20.7 | |||||||||||||||||||
| Excess compensation related to CDK outage | (9.6) | — | |||||||||||||||||||||
| Hail and storm damage charges | (3.6) | (1.9) | |||||||||||||||||||||
| Gain (loss) on exit of leased dealerships | 3.0 | (0.4) | |||||||||||||||||||||
| Severance and long-term compensation charges | (0.7) | (2.2) | |||||||||||||||||||||
| Total SG&A adjustments | $ | (10.3) | $ | 16.2 | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses | $ | 382.7 | $ | 408.1 | $ | 25.4 | 6 | % | |||||||||||||||
| Reported: | |||||||||||||||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||||||||||||||
| Compensation | 46.5 | % | 45.9 | % | (60) | bps | |||||||||||||||||
| Advertising | 4.0 | % | 4.0 | % | — | bps | |||||||||||||||||
| Rent | 1.4 | % | 2.0 | % | 60 | bps | |||||||||||||||||
| Other | 21.0 | % | 17.0 | % | (400) | bps | |||||||||||||||||
| Total SG&A expenses as a % of gross profit | 72.9 | % | 68.9 | % | (400) | bps | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Acquisition and disposition-related gain (loss) | 0.1 | % | 2.0 | % | |||||||||||||||||||
| Excess compensation related to CDK outage | (2.1) | % | — | % | |||||||||||||||||||
| Hail and storm damage charges | (0.7) | % | (0.2) | % | |||||||||||||||||||
| Gain (loss) on exit of leased dealerships | 0.6 | % | — | % | |||||||||||||||||||
| Severance and long-term compensation charges | (0.1) | % | (0.2) | % | |||||||||||||||||||
| Total effect of adjustments | (2.2) | % | 1.6 | % | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses as a % of gross profit | 70.7 | % | 70.5 | % | (20) | bps | |||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Total gross profit | $ | 539.1 | $ | 568.9 | $ | (29.8) | (5) | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Excess compensation related to CDK outage | $ | 2.0 | $ | — | |||||||||||||||||||
| Used vehicle inventory valuation adjustment | — | 10.0 | |||||||||||||||||||||
| Total adjustments | $ | 2.0 | $ | 10.0 | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted gross profit | $ | 541.1 | $ | 578.9 | $ | (37.8) | (7) | % | |||||||||||||||
Non-GAAP Reconciliation - Consolidated - SG&A Expenses (Continued)
| Six Months Ended June 30, | Better / (Worse) | ||||||||||||||||||||||
| 2024 | 2023 | Change | % Change | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Compensation | $ | 498.1 | $ | 519.7 | $ | 21.6 | 4 | % | |||||||||||||||
| Advertising | 43.9 | 48.9 | 5.0 | 10 | % | ||||||||||||||||||
| Rent | 17.1 | 22.8 | 5.7 | 25 | % | ||||||||||||||||||
| Other | 226.2 | 213.3 | (12.9) | (6) | % | ||||||||||||||||||
| Total SG&A expenses | $ | 785.3 | $ | 804.7 | $ | 19.4 | 2 | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Acquisition and disposition-related gain (loss) | $ | 0.6 | $ | 20.7 | |||||||||||||||||||
| Closed store accrued expenses | (2.1) | — | |||||||||||||||||||||
| Excess compensation related to CDK outage | (9.6) | — | |||||||||||||||||||||
| Hail and storm damage charges | (3.6) | (1.9) | |||||||||||||||||||||
| Gain (loss) on exit of leased dealerships | 3.0 | (0.4) | |||||||||||||||||||||
| Severance and long-term compensation charges | (5.0) | (4.2) | |||||||||||||||||||||
| Total SG&A adjustments | $ | (16.7) | $ | 14.2 | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses | $ | 768.6 | $ | 818.9 | $ | 50.3 | 6 | % | |||||||||||||||
| Reported: | |||||||||||||||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||||||||||||||
| Compensation | 46.3 | % | 46.3 | % | — | bps | |||||||||||||||||
| Advertising | 4.1 | % | 4.4 | % | 30 | bps | |||||||||||||||||
| Rent | 1.6 | % | 2.0 | % | 40 | bps | |||||||||||||||||
| Other | 21.0 | % | 19.0 | % | (200) | bps | |||||||||||||||||
| Total SG&A expenses as a % of gross profit | 73.0 | % | 71.7 | % | (130) | bps | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Acquisition and disposition-related gain (loss) | 0.1 | % | 0.9 | % | |||||||||||||||||||
| Closed store accrued expenses | (0.2) | % | — | % | |||||||||||||||||||
| Excess compensation related to CDK outage | (1.0) | % | — | % | |||||||||||||||||||
| Hail and storm damage charges | (0.4) | % | (0.1) | % | |||||||||||||||||||
| Gain (loss) on exit of leased dealerships | 0.3 | % | — | % | |||||||||||||||||||
| Severance and long-term compensation charges | (0.5) | % | (0.2) | % | |||||||||||||||||||
| Total effect of adjustments | (1.7) | % | 0.6 | % | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses as a % of gross profit | 71.3 | % | 72.3 | % | 80 | bps | |||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Total gross profit | $ | 1,075.3 | $ | 1,122.5 | $ | (47.2) | (4) | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Excess compensation related to CDK outage | $ | 2.0 | $ | — | |||||||||||||||||||
| Used vehicle inventory valuation adjustment | — | 10.0 | |||||||||||||||||||||
| Total adjustments | $ | 2.0 | $ | 10.0 | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted gross profit | $ | 1,077.3 | $ | 1,132.5 | $ | (55.2) | (5) | % | |||||||||||||||
Non-GAAP Reconciliation - Franchised Dealerships Segment - SG&A Expenses
| Three Months Ended June 30, | Better / (Worse) | ||||||||||||||||||||||
| 2024 | 2023 | Change | % Change | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Compensation | $ | 221.9 | $ | 219.0 | $ | (2.9) | (1) | % | |||||||||||||||
| Advertising | 14.3 | 8.7 | (5.6) | (64) | % | ||||||||||||||||||
| Rent | 10.3 | 9.4 | (0.9) | (10) | % | ||||||||||||||||||
| Other | 101.4 | 79.0 | (22.4) | (28) | % | ||||||||||||||||||
| Total SG&A expenses | $ | 347.9 | $ | 316.1 | $ | (31.8) | (10) | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Acquisition and disposition-related gain (loss) | $ | — | $ | 20.9 | |||||||||||||||||||
| Excess compensation related to CDK outage | (9.2) | — | |||||||||||||||||||||
| Hail and storm damage charges | (3.6) | (1.9) | |||||||||||||||||||||
| Total SG&A adjustments | $ | (12.8) | $ | 19.0 | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses | $ | 335.1 | $ | 335.1 | $ | — | — | % | |||||||||||||||
| Reported: | |||||||||||||||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||||||||||||||
| Compensation | 46.5 | % | 41.4 | % | (510) | bps | |||||||||||||||||
| Advertising | 3.0 | % | 1.6 | % | (140) | bps | |||||||||||||||||
| Rent | 2.2 | % | 1.8 | % | (40) | bps | |||||||||||||||||
| Other | 21.2 | % | 14.9 | % | (630) | bps | |||||||||||||||||
| Total SG&A expenses as a % of gross profit | 72.9 | % | 59.7 | % | (1,320) | bps | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Acquisition and disposition-related gain (loss) | — | % | 4.0 | % | |||||||||||||||||||
| Excess compensation related to CDK outage | (2.2) | % | — | % | |||||||||||||||||||
| Hail and storm damage charges | (0.8) | % | (0.4) | % | |||||||||||||||||||
| Total effect of adjustments | (3.0) | % | 3.6 | % | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses as a % of gross profit | 69.9 | % | 63.3 | % | (660) | bps | |||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Total gross profit | $ | 477.3 | $ | 529.3 | $ | (52.0) | (10) | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Excess compensation related to CDK outage | $ | 2.0 | $ | — | |||||||||||||||||||
| Total adjustments | $ | 2.0 | $ | — | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted gross profit | $ | 479.3 | $ | 529.3 | $ | (50.0) | (9) | % | |||||||||||||||
Non-GAAP Reconciliation - Franchised Dealerships Segment - SG&A Expenses (Continued)
| Six Months Ended June 30, | Better / (Worse) | ||||||||||||||||||||||
| 2024 | 2023 | Change | % Change | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Compensation | $ | 438.3 | $ | 432.8 | $ | (5.5) | (1) | % | |||||||||||||||
| Advertising | 29.6 | 18.6 | (11.0) | (59) | % | ||||||||||||||||||
| Rent | 20.4 | 19.5 | (0.9) | (5) | % | ||||||||||||||||||
| Other | 198.1 | 176.4 | (21.7) | (12) | % | ||||||||||||||||||
| Total SG&A expenses | $ | 686.4 | $ | 647.3 | $ | (39.1) | (6) | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Acquisition and disposition-related gain (loss) | $ | — | $ | 20.9 | |||||||||||||||||||
| Excess compensation related to CDK outage | (9.2) | — | |||||||||||||||||||||
| Hail and storm damage charges | (3.6) | (1.9) | |||||||||||||||||||||
| Severance and long-term compensation charges | (2.2) | — | |||||||||||||||||||||
| Total SG&A adjustments | $ | (15.0) | $ | 19.0 | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses | $ | 671.4 | $ | 666.3 | $ | (5.1) | (1) | % | |||||||||||||||
| Reported: | |||||||||||||||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||||||||||||||
| Compensation | 46.0 | % | 41.9 | % | (410) | bps | |||||||||||||||||
| Advertising | 3.1 | % | 1.8 | % | (130) | bps | |||||||||||||||||
| Rent | 2.1 | % | 1.9 | % | (20) | bps | |||||||||||||||||
| Other | 20.8 | % | 17.0 | % | (380) | bps | |||||||||||||||||
| Total SG&A expenses as a % of gross profit | 72.0 | % | 62.6 | % | (940) | bps | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Acquisition and disposition-related gain (loss) | — | % | 2.1 | % | |||||||||||||||||||
| Excess compensation related to CDK outage | (1.1) | % | — | % | |||||||||||||||||||
| Hail and storm damage charges | (0.4) | % | (0.2) | % | |||||||||||||||||||
| Severance and long-term compensation charges | (0.2) | % | — | % | |||||||||||||||||||
| Total effect of adjustments | (1.7) | % | 1.9 | % | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses as a % of gross profit | 70.3 | % | 64.5 | % | (580) | bps | |||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Total gross profit | $ | 953.1 | $ | 1,033.7 | $ | (80.6) | (8) | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Excess compensation related to CDK outage | $ | 2.0 | $ | — | |||||||||||||||||||
| Total adjustments | $ | 2.0 | $ | — | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted gross profit | $ | 955.1 | $ | 1,033.7 | $ | (78.6) | (8) | % | |||||||||||||||
Non-GAAP Reconciliation - EchoPark Segment - SG&A Expenses
| Three Months Ended June 30, | Better / (Worse) | ||||||||||||||||||||||
| 2024 | 2023 | Change | % Change | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Compensation | $ | 23.3 | $ | 35.4 | $ | 12.1 | 34 | % | |||||||||||||||
| Advertising | 7.0 | 13.7 | 6.7 | 49 | % | ||||||||||||||||||
| Rent | (2.7) | 2.1 | 4.8 | 229 | % | ||||||||||||||||||
| Other | 9.6 | 15.4 | 5.8 | 38 | % | ||||||||||||||||||
| Total SG&A expenses | $ | 37.2 | $ | 66.6 | $ | 29.4 | 44 | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Acquisition and disposition-related gain (loss) | $ | 0.6 | $ | (0.2) | |||||||||||||||||||
| Excess compensation related to CDK outage | (0.4) | — | |||||||||||||||||||||
| Gain (loss) on exit of leased dealerships | 3.0 | (0.4) | |||||||||||||||||||||
| Severance and long-term compensation charges | (0.7) | (2.2) | |||||||||||||||||||||
| Total SG&A adjustments | $ | 2.5 | $ | (2.8) | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses | $ | 39.7 | $ | 63.8 | $ | 24.1 | 38 | % | |||||||||||||||
| Reported: | |||||||||||||||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||||||||||||||
| Compensation | 45.6 | % | 132.2 | % | 8,660 | bps | |||||||||||||||||
| Advertising | 13.6 | % | 51.2 | % | 3,760 | bps | |||||||||||||||||
| Rent | (5.2) | % | 8.0 | % | 1,320 | bps | |||||||||||||||||
| Other | 18.9 | % | 57.1 | % | 3,820 | bps | |||||||||||||||||
| Total SG&A expenses as a % of gross profit | 72.9 | % | 248.5 | % | 17,560 | bps | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Acquisition and disposition-related gain (loss) | 1.2 | % | (5.4) | % | |||||||||||||||||||
| Excess compensation related to CDK outage | (0.8) | % | — | % | |||||||||||||||||||
| Gain (loss) on exit of leased dealerships | 5.7 | % | (10.7) | % | |||||||||||||||||||
| Severance and long-term compensation charges | (1.3) | % | (58.9) | % | |||||||||||||||||||
| Total effect of adjustments | 4.8 | % | (75.0) | % | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses as a % of gross profit | 77.7 | % | 173.5 | % | 9,580 | bps | |||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Total gross profit | $ | 51.1 | $ | 26.8 | $ | 24.3 | 91 | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Used vehicle inventory valuation adjustment | $ | — | $ | 10.0 | |||||||||||||||||||
| Total adjustments | $ | — | $ | 10.0 | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted gross profit | $ | 51.1 | $ | 36.8 | $ | 14.3 | 39 | % | |||||||||||||||
Non-GAAP Reconciliation - EchoPark Segment - SG&A Expenses (Continued)
| Six Months Ended June 30, | Better / (Worse) | ||||||||||||||||||||||
| 2024 | 2023 | Change | % Change | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Compensation | $ | 48.5 | $ | 75.1 | $ | 26.6 | 35 | % | |||||||||||||||
| Advertising | 13.6 | 29.5 | 15.9 | 54 | % | ||||||||||||||||||
| Rent | (3.4) | 3.2 | 6.6 | 206 | % | ||||||||||||||||||
| Other | 24.1 | 32.6 | 8.5 | 26 | % | ||||||||||||||||||
| Total SG&A expenses | $ | 82.8 | $ | 140.4 | $ | 57.6 | 41 | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Acquisition and disposition-related gain (loss) | $ | 0.6 | $ | (0.2) | |||||||||||||||||||
| Closed store accrued expenses | (2.1) | — | |||||||||||||||||||||
| Excess compensation related to CDK outage | (0.4) | — | |||||||||||||||||||||
| Gain (loss) on exit of leased dealerships | 3.0 | (0.4) | |||||||||||||||||||||
| Severance and long-term compensation charges | (2.8) | (4.2) | |||||||||||||||||||||
| Total SG&A adjustments | $ | (1.7) | $ | (4.8) | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses | $ | 81.1 | $ | 135.6 | $ | 54.5 | 40 | % | |||||||||||||||
| Reported: | |||||||||||||||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||||||||||||||
| Compensation | 46.7 | % | 113.4 | % | 6,670 | bps | |||||||||||||||||
| Advertising | 13.1 | % | 44.5 | % | 3,140 | bps | |||||||||||||||||
| Rent | (3.3) | % | 4.9 | % | 820 | bps | |||||||||||||||||
| Other | 23.4 | % | 49.2 | % | 2,580 | bps | |||||||||||||||||
| Total SG&A expenses as a % of gross profit | 79.9 | % | 212.0 | % | 13,210 | bps | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Acquisition and disposition-related gain (loss) | 0.6 | % | (1.4) | % | |||||||||||||||||||
| Closed store accrued expenses | (2.1) | % | — | % | |||||||||||||||||||
| Excess compensation related to CDK outage | (0.4) | % | — | % | |||||||||||||||||||
| Gain (loss) on exit of leased dealerships | 3.0 | % | (2.8) | % | |||||||||||||||||||
| Severance and long-term compensation charges | (2.8) | % | (29.9) | % | |||||||||||||||||||
| Total effect of adjustments | (1.7) | % | (34.1) | % | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses as a % of gross profit | 78.2 | % | 177.9 | % | 9,970 | bps | |||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Total gross profit | $ | 103.7 | $ | 66.2 | $ | 37.5 | 57 | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Used vehicle inventory valuation adjustment | $ | — | $ | 10.0 | |||||||||||||||||||
| Total adjustments | $ | — | $ | 10.0 | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted gross profit | $ | 103.7 | $ | 76.2 | $ | 27.5 | 36 | % | |||||||||||||||
Non-GAAP Reconciliation - Powersports Segment - SG&A Expenses
| Three Months Ended June 30, | Better / (Worse) | ||||||||||||||||||||||
| 2024 | 2023 | Change | % Change | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Compensation | $ | 5.7 | $ | 6.6 | $ | 0.9 | 14 | % | |||||||||||||||
| Advertising | 0.4 | 0.4 | — | — | % | ||||||||||||||||||
| Rent | 0.1 | — | (0.1) | — | % | ||||||||||||||||||
| Other | 1.7 | 2.2 | 0.5 | 23 | % | ||||||||||||||||||
| Total SG&A expenses | $ | 7.9 | $ | 9.2 | $ | 1.3 | 14 | % | |||||||||||||||
| Reported: | |||||||||||||||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||||||||||||||
| Compensation | 53.2 | % | 51.3 | % | (190) | bps | |||||||||||||||||
| Advertising | 3.8 | % | 2.9 | % | (90) | bps | |||||||||||||||||
| Rent | 0.9 | % | 0.2 | % | (70) | bps | |||||||||||||||||
| Other | 15.8 | % | 17.2 | % | 140 | bps | |||||||||||||||||
| Total SG&A expenses as a % of gross profit | 73.7 | % | 71.6 | % | (210) | bps | |||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Total gross profit | $ | 10.7 | $ | 12.8 | $ | (2.1) | (16) | % | |||||||||||||||
| Six Months Ended June 30, | Better / (Worse) | ||||||||||||||||||||||
| 2024 | 2023 | Change | % Change | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Compensation | $ | 11.4 | $ | 11.8 | $ | 0.4 | 3 | % | |||||||||||||||
| Advertising | 0.8 | 0.8 | — | — | % | ||||||||||||||||||
| Rent | 0.1 | 0.1 | — | — | % | ||||||||||||||||||
| Other | 3.7 | 4.3 | 0.6 | 14 | % | ||||||||||||||||||
| Total SG&A expenses | $ | 16.0 | $ | 17.0 | $ | 1.0 | 6 | % | |||||||||||||||
| Reported: | |||||||||||||||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||||||||||||||
| Compensation | 61.4 | % | 52.4 | % | (900) | bps | |||||||||||||||||
| Advertising | 4.3 | % | 3.5 | % | (80) | bps | |||||||||||||||||
| Rent | 0.7 | % | 0.3 | % | (40) | bps | |||||||||||||||||
| Other | 20.3 | % | 19.0 | % | (130) | bps | |||||||||||||||||
| Total SG&A expenses as a % of gross profit | 86.7 | % | 75.2 | % | (1,150) | bps | |||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Total gross profit | $ | 18.5 | $ | 22.6 | $ | (4.1) | (18) | % | |||||||||||||||
Non-GAAP Reconciliation - Franchised Dealerships Segment - Income (Loss) Before Taxes and Segment Income (Loss)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||||||||||||||
| Income (loss) before taxes | $ | 52.7 | $ | 145.9 | (64) | % | $ | 115.4 | $ | 255.8 | (55) | % | |||||||||||||||||||||||
| Add: Impairment charges | — | — | 1.0 | — | |||||||||||||||||||||||||||||||
| Segment income (loss) | $ | 52.7 | $ | 145.9 | (64) | % | $ | 116.4 | $ | 255.8 | (54) | % | |||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||
| Acquisition and disposition-related (gain) loss | $ | — | $ | (20.9) | $ | — | $ | (20.9) | |||||||||||||||||||||||||||
| Excess compensation related to CDK outage | 11.2 | — | 11.2 | — | |||||||||||||||||||||||||||||||
| Hail and storm damage charges | 3.6 | 1.9 | 3.6 | 1.9 | |||||||||||||||||||||||||||||||
| Severance and long-term compensation charges | — | — | 2.2 | — | |||||||||||||||||||||||||||||||
| Total pre-tax adjustments | $ | 14.8 | $ | (19.0) | $ | 17.0 | $ | (19.0) | |||||||||||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||||||||||||||
| Segment income (loss) | $ | 67.5 | $ | 126.9 | (47) | % | $ | 133.4 | $ | 236.8 | (44) | % | |||||||||||||||||||||||
Non-GAAP Reconciliation - EchoPark Segment - Income (Loss) Before Taxes and Segment Income (Loss)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||||||||||||||
| Income (loss) before taxes | $ | 2.5 | $ | (115.4) | 102 | % | $ | (0.5) | $ | (162.3) | 100 | % | |||||||||||||||||||||||
| Add: Impairment charges | 1.4 | 62.6 | 1.4 | 62.6 | |||||||||||||||||||||||||||||||
| Segment income (loss) | $ | 3.9 | $ | (52.8) | 107 | % | $ | 0.9 | $ | (99.7) | 101 | % | |||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||
| Acquisition and disposition-related (gain) loss | $ | (0.6) | $ | 0.2 | $ | (0.6) | $ | 0.2 | |||||||||||||||||||||||||||
| Closed store accrued expenses | — | — | 2.1 | — | |||||||||||||||||||||||||||||||
| Excess compensation related to CDK outage | 0.4 | — | 0.4 | — | |||||||||||||||||||||||||||||||
| Loss (gain) on exit of leased dealerships | (3.0) | 0.4 | (3.0) | 0.4 | |||||||||||||||||||||||||||||||
| Severance and long-term compensation charges | 0.7 | 2.2 | 2.8 | 4.2 | |||||||||||||||||||||||||||||||
| Used vehicle inventory valuation adjustment | — | 10.0 | — | 10.0 | |||||||||||||||||||||||||||||||
| Total pre-tax adjustments | $ | (2.5) | $ | 12.8 | $ | 1.7 | $ | 14.8 | |||||||||||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||||||||||||||
| Segment income (loss) | $ | 1.4 | $ | (40.0) | 104 | % | $ | 2.6 | $ | (84.9) | 103 | % | |||||||||||||||||||||||
Non-GAAP Reconciliation - Powersports Segment - Income (Loss) Before Taxes and Segment Income (Loss)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||||||||||||||
| Income (loss) before taxes | $ | 0.5 | $ | 2.0 | (75) | % | $ | (1.7) | $ | 2.6 | (165) | % | |||||||||||||||||||||||
| Add: Impairment charges | — | — | — | — | |||||||||||||||||||||||||||||||
| Segment income (loss) | $ | 0.5 | $ | 2.0 | (75) | % | $ | (1.7) | $ | 2.6 | (165) | % | |||||||||||||||||||||||
Non-GAAP Reconciliation - Consolidated - Net Income (Loss) and Diluted Earnings (Loss) Per Share
| Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||
| Weighted- Average Shares | Amount | Per Share Amount | Weighted- Average Shares | Amount | Per Share Amount | ||||||||||||||||||||||||||||||
| (In millions, except per share amounts) | |||||||||||||||||||||||||||||||||||
| Reported net income (loss), diluted shares, and diluted earnings (loss) per share | 34.9 | $ | 41.2 | $ | 1.18 | 36.0 | $ | 23.4 | $ | 0.65 | |||||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||
| Acquisition and disposition-related gain (loss) | $ | (0.6) | $ | (20.7) | |||||||||||||||||||||||||||||||
| Excess compensation related to CDK outage | 11.6 | — | |||||||||||||||||||||||||||||||||
| Hail and storm damage charges | 3.6 | 1.9 | |||||||||||||||||||||||||||||||||
| Impairment charges | 1.4 | 62.6 | |||||||||||||||||||||||||||||||||
| Loss (gain) on exit of leased dealerships | (3.0) | 0.4 | |||||||||||||||||||||||||||||||||
| Severance and long-term compensation charges | 0.7 | 2.2 | |||||||||||||||||||||||||||||||||
| Used vehicle inventory valuation adjustment | — | 10.0 | |||||||||||||||||||||||||||||||||
| Total pre-tax adjustments | $ | 13.7 | $ | 56.4 | |||||||||||||||||||||||||||||||
| Tax effect of above items | (3.6) | (13.8) | |||||||||||||||||||||||||||||||||
| Adjusted net income (loss), diluted shares, and diluted earnings (loss) per share | 34.9 | $ | 51.3 | $ | 1.47 | 36.0 | $ | 66.0 | $ | 1.83 | |||||||||||||||||||||||||
| Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||
| Weighted- Average Shares | Net Income (Loss) | Per Share Amount | Weighted- Average Shares | Net Income (Loss) | Per Share Amount | ||||||||||||||||||||||||||||||
| (In millions, except per share amounts) | |||||||||||||||||||||||||||||||||||
| Reported net income (loss), diluted shares, and diluted earnings (loss) per share | 34.8 | $ | 83.2 | $ | 2.39 | 36.5 | $ | 71.1 | $ | 1.95 | |||||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||
| Acquisition and disposition-related gain (loss) | $ | (0.6) | $ | (20.7) | |||||||||||||||||||||||||||||||
| Closed store accrued expenses | 2.1 | — | |||||||||||||||||||||||||||||||||
| Excess compensation related to CDK outage | 11.6 | — | |||||||||||||||||||||||||||||||||
| Hail and storm damage charges | 3.6 | 1.9 | |||||||||||||||||||||||||||||||||
| Impairment charges | 2.4 | 62.6 | |||||||||||||||||||||||||||||||||
| Loss (gain) on exit of leased dealerships | (3.0) | 0.4 | |||||||||||||||||||||||||||||||||
| Severance and long-term compensation charges | 5.0 | 4.2 | |||||||||||||||||||||||||||||||||
| Used vehicle inventory valuation adjustment | — | 10.0 | |||||||||||||||||||||||||||||||||
| Total pre-tax adjustments | $ | 21.1 | $ | 58.4 | |||||||||||||||||||||||||||||||
| Tax effect of above items | (5.6) | (14.3) | |||||||||||||||||||||||||||||||||
| Adjusted net income (loss), diluted shares, and diluted earnings (loss) per share | 34.8 | $ | 98.7 | $ | 2.84 | 36.5 | $ | 115.2 | $ | 3.16 | |||||||||||||||||||||||||
Non-GAAP Reconciliation - Adjusted EBITDA
| Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
| Franchised Dealerships Segment | EchoPark Segment | Powersports Segment | Total | Franchised Dealerships Segment | EchoPark Segment | Powersports Segment | Total | ||||||||||||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 41.2 | $ | 23.4 | |||||||||||||||||||||||||||||||||||||||||||
| Provision for income taxes | 14.5 | 9.1 | |||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before taxes | $ | 52.7 | $ | 2.5 | $ | 0.5 | $ | 55.7 | $ | 145.9 | $ | (115.4) | $ | 2.0 | $ | 32.5 | |||||||||||||||||||||||||||||||
| Non-floor plan interest (1) | 26.5 | 0.7 | 0.8 | 28.0 | 25.8 | 0.8 | 0.6 | 27.2 | |||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization (2) | 31.6 | 5.4 | 1.0 | 38.0 | 29.5 | 7.4 | 0.8 | 37.7 | |||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | 5.9 | — | — | 5.9 | 5.6 | — | — | 5.6 | |||||||||||||||||||||||||||||||||||||||
| Loss (gain) on exit of leased dealerships | — | (3.0) | — | (3.0) | — | 0.4 | — | 0.4 | |||||||||||||||||||||||||||||||||||||||
| Impairment charges | — | 1.4 | — | 1.4 | — | 62.6 | — | 62.6 | |||||||||||||||||||||||||||||||||||||||
| Loss on debt extinguishment | 0.6 | — | — | 0.6 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Severance and long-term compensation charges | — | 0.8 | — | 0.8 | — | 2.2 | — | 2.2 | |||||||||||||||||||||||||||||||||||||||
| Excess compensation related to CDK outage | 11.2 | 0.4 | — | 11.6 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Acquisition and disposition related (gain) loss | (0.3) | (1.0) | — | (1.3) | (20.9) | 0.2 | — | (20.7) | |||||||||||||||||||||||||||||||||||||||
| Hail and storm damage charges | 3.6 | — | — | 3.6 | 1.9 | — | — | 1.9 | |||||||||||||||||||||||||||||||||||||||
| Used vehicle inventory valuation adjustment | — | — | — | — | — | 10.0 | — | 10.0 | |||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 131.8 | $ | 7.2 | $ | 2.3 | $ | 141.3 | $ | 187.8 | $ | (31.8) | $ | 3.4 | $ | 159.4 | |||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
| Franchised Dealerships Segment | EchoPark Segment | Powersports Segment | Total | Franchised Dealerships Segment | EchoPark Segment | Powersports Segment | Total | ||||||||||||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 83.2 | $ | 71.1 | |||||||||||||||||||||||||||||||||||||||||||
| Provision for income taxes | 30.0 | 25.0 | |||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before taxes | $ | 115.4 | $ | (0.5) | $ | (1.7) | $ | 113.2 | $ | 255.8 | $ | (162.3) | $ | 2.6 | $ | 96.1 | |||||||||||||||||||||||||||||||
| Non-floor plan interest (1) | 52.8 | 1.3 | 1.3 | 55.4 | 51.2 | 1.7 | 1.2 | 54.1 | |||||||||||||||||||||||||||||||||||||||
| Depreciation & amortization (2) | 63.1 | 10.8 | 2.0 | 75.9 | 57.7 | 14.4 | 1.5 | 73.6 | |||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | 10.3 | — | — | 10.3 | 10.6 | — | — | 10.6 | |||||||||||||||||||||||||||||||||||||||
| Loss (gain) on exit of leased dealerships | — | (3.0) | — | (3.0) | — | 0.4 | — | 0.4 | |||||||||||||||||||||||||||||||||||||||
| Impairment charges | 1.0 | 1.4 | — | 2.4 | — | 62.6 | — | 62.6 | |||||||||||||||||||||||||||||||||||||||
| Loss on debt extinguishment | 0.6 | — | — | 0.6 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Severance and long-term compensation charges | 2.2 | 2.9 | — | 5.1 | — | 4.2 | — | 4.2 | |||||||||||||||||||||||||||||||||||||||
| Excess compensation related to CDK outage | 11.2 | 0.4 | — | 11.6 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Acquisition and disposition related (gain) loss | (0.3) | (1.0) | — | (1.3) | (20.9) | 0.2 | — | (20.7) | |||||||||||||||||||||||||||||||||||||||
| Hail and storm damage charges | 3.6 | — | — | 3.6 | 1.9 | — | — | 1.9 | |||||||||||||||||||||||||||||||||||||||
| Used vehicle inventory valuation adjustment | — | — | — | — | — | 10.0 | — | 10.0 | |||||||||||||||||||||||||||||||||||||||
| Closed store accrued expenses | $ | — | $ | 2.1 | $ | — | $ | 2.1 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 259.9 | $ | 14.4 | $ | 1.6 | $ | 275.9 | $ | 356.3 | $ | (68.8) | $ | 5.3 | $ | 292.8 | |||||||||||||||||||||||||||||||
(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 June 30, 2024 | Three Months Ended June 30, 2023 | Better / (Worse) % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||
| EchoPark Operations | Closed Stores | Total EchoPark Segment | EchoPark Operations | Closed Stores | Total EchoPark Segment | EchoPark Operations | Closed Stores | Total EchoPark Segment | |||||||||||||||||||||||||||||||||||||||||||||
| (In millions, except unit and per unit data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues | $ | 518.1 | $ | (0.8) | $ | 517.3 | $ | 468.9 | $ | 131.7 | $ | 600.6 | 10 | % | (101) | % | (14) | % | |||||||||||||||||||||||||||||||||||
| Total gross profit | $ | 51.9 | $ | (0.8) | $ | 51.1 | $ | 18.8 | $ | 8.0 | $ | 26.8 | 176 | % | (110) | % | 91 | % | |||||||||||||||||||||||||||||||||||
| Income (loss) before taxes | $ | 2.7 | $ | (0.2) | $ | 2.5 | $ | (32.0) | $ | (83.4) | $ | (115.4) | 108 | % | 100 | % | 102 | % | |||||||||||||||||||||||||||||||||||
| Non-floor plan interest (1) | 0.9 | (0.2) | 0.7 | 0.4 | 0.4 | 0.8 | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization (2) | 5.4 | — | 5.4 | 5.5 | 1.9 | 7.4 | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||||||||
| Acquisition and disposition-related (gain) loss | — | (1.0) | (1.0) | — | 0.2 | 0.2 | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||||||||
| Impairment charges | — | 1.4 | 1.4 | — | 62.6 | 62.6 | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||||||||
| Loss (gain) on exit of leased dealerships | — | (3.0) | (3.0) | — | 0.4 | 0.4 | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||||||||
| Severance and long-term compensation charges | — | 0.8 | 0.8 | — | 2.2 | 2.2 | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||||||||
| Excess compensation related to CDK outage | 0.4 | 0.4 | — | — | — | NM | NM | NM | |||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle inventory valuation adjustment | — | — | — | 7.7 | 2.3 | 10.0 | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 9.0 | $ | (1.8) | $ | 7.2 | $ | (18.4) | $ | (13.4) | $ | (31.8) | 149 | % | 87 | % | 123 | % | |||||||||||||||||||||||||||||||||||
| Used vehicle unit sales volume | 16,641 | — | 16,641 | 13,529 | 3,555 | 17,084 | 23 | % | (100) | % | (3) | % | |||||||||||||||||||||||||||||||||||||||||
| Total used vehicle and F&I gross profit per unit | $ | 3,127 | $ | — | $ | 3,078 | $ | 2,091 | $ | 2,387 | $ | 1,569 | 50 | % | (100) | % | 96 | % | |||||||||||||||||||||||||||||||||||
NM = Not Meaningful
Non-GAAP Reconciliation - EchoPark Segment Operations and Closed Stores (Continued)
| Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | Better / (Worse) % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||
| EchoPark Operations | Closed Stores | Total EchoPark Segment | EchoPark Operations | Closed Stores | Total EchoPark Segment | EchoPark Operations | Closed Stores | Total EchoPark Segment | |||||||||||||||||||||||||||||||||||||||||||||
| (In millions, except unit and per unit data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues | $ | 1,064.3 | $ | 12.4 | $ | 1,076.7 | $ | 958.8 | $ | 292.3 | $ | 1,251.1 | 11 | % | (96) | % | (14) | % | |||||||||||||||||||||||||||||||||||
| Total gross profit | $ | 105.0 | $ | (1.3) | $ | 103.7 | $ | 47.9 | $ | 18.3 | $ | 66.2 | 119 | % | (107) | % | 57 | % | |||||||||||||||||||||||||||||||||||
| Income (loss) before taxes | $ | 6.0 | $ | (6.5) | $ | (0.5) | $ | (60.1) | $ | (102.2) | $ | (162.3) | 110 | % | 94 | % | 100 | % | |||||||||||||||||||||||||||||||||||
| Non-floor plan interest (1) | 1.1 | 0.2 | 1.3 | 1.0 | 0.7 | 1.7 | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization (2) | 10.8 | — | 10.8 | 10.8 | 3.6 | 14.4 | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||||||||
| Acquisition and disposition-related (gain) loss | — | (1.0) | (1.0) | — | 0.2 | 0.2 | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||||||||
| Closed store accrued expenses | — | 2.1 | 2.1 | — | — | — | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||||||||
| Impairment charges | — | 1.4 | 1.4 | — | 62.6 | 62.6 | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||||||||
| Loss (gain) on exit of leased dealerships | — | (3.0) | (3.0) | — | 0.4 | 0.4 | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||||||||
| Severance and long-term compensation charges | — | 2.9 | 2.9 | — | 4.2 | 4.2 | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||||||||
| Excess compensation related to CDK outage | 0.4 | — | 0.4 | — | — | — | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle inventory valuation adjustment | — | — | — | 7.7 | 2.3 | 10.0 | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 18.3 | $ | (3.9) | $ | 14.4 | $ | (40.6) | $ | (28.2) | $ | (68.8) | 145 | % | 86 | % | 121 | % | |||||||||||||||||||||||||||||||||||
| Used vehicle unit sales volume | 34,259 | 363 | 34,622 | 29,080 | 7,984 | 37,064 | 18 | % | (95) | % | (7) | % | |||||||||||||||||||||||||||||||||||||||||
| Total used vehicle and F&I gross profit per unit | $ | 3,071 | $ | (1,954) | $ | 3,014 | $ | 1,953 | $ | 2,333 | $ | 1,750 | 57 | % | (184) | % | 72 | % | |||||||||||||||||||||||||||||||||||
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 | Second Quarter 2024 Updated August 5, 2024 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, 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 future finance and insurance (“F&I”) 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 growth and profitability of our Powersports 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 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, 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 • 106 locations - $11.8 billion in FY 2023 revenues • Our EchoPark Segment Provides high growth potential in a highly fragmented pre-owned vehicle market • 18 locations - $2.4 billion in FY 2023 revenues • Our Powersports Segment represents an early-stage consolidation growth opportunity at attractive multiples • 13 locations - $163 million in FY 2023 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 August 5, 2024. * Refer to appendix for calculation and reconciliation of Adjusted EPS (a non-GAAP measure). $10.5 $9.8 $12.4 $14.0 $14.4 $3.7 $3.5 $3.30 $(1.21) $8.06 $2.23 $4.97 $0.65 $1.18 $2.65 $3.85 $8.46 $9.61 $6.81 $1.83 $1.47 $- $2 $4 $6 $8 $10 $12 $14 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q2 2023 Q2 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 27% CA 23% CO 9% TN 7% FL 5% AL 5% NC 5% GA 4% ID 3% VA 2% MD 2% NV 2% All Others 6% Total Revenues By State Note: Percentages are percent of total for year ended December 31, 2023. 5% 30% 12% 39% 38% 7% 45% 24% Revenue Gross Profit New Vehicle Used Vehicle (Including Wholesale) Parts, Service & Collision Repair ("Fixed Operations") Finance & Insurance ("F&I") Category % of Revenue Franchised Brand % of Revenue BMW 21% Mercedes 11% Audi 6% Lexus 4% Porsche 3% Land Rover 3% Cadillac 2% Other Luxury (1) 3% Honda 9% Toyota 7% Other Import (2) 3% EchoPark 17% Non-Franchised 17% Chevrolet GMC Buick 4% Ford 4% Chrysler Dodge Jeep RAM 3% Powersports <1% Powersports (3) <1% Luxury 53% 19%Import Domestic 11% (1) Includes Alfa Romeo, Infiniti, Jaguar, Maserati, MINI 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 • Pursue accretive strategic acquisition opportunities once market normalizes Franchised Dealerships Strategy $9.3 $8.3 $10.1 $11.5 $11.8 $3.0 $2.9 $211 $231 $530 $642 $448 $146 $53 $288 $360 $692 $839 $675 $188 $132 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q2 2023 Q2 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). 3.6% 2.3% 1.5% 1.7% 2.0% 1.6% 3.0% 47.7% 45.7% 40.8% 40.2% 42.1% 41.4% 44.4% 21.7% 19.8% 16.0% 16.2% 19.5% 18.5% 20.3% 3.8% 3.8% 2.6% 2.0% 2.0% 1.8% 2.2% 76.8% 71.6% 60.9% 60.1% 65.6% 63.3% 69.9%71.8% 71.3% 61.0% 59.9% 64.6% 59.7% 72.9% FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q2 2023 Q2 2024 Reported and Adjusted SG&A Expenses as % of Gross Profit* Advertising Compensation Other Rent Adjusted SG&A Expenses* Reported SG&A Expenses 5
NYSE SAH Strategic Focus – Franchised Dealerships Segment (continued) 6 111.5 91.9 99.8 99.4 107.3 27.4 26.5 $42.9 $45.9 $49.9 $56.1 $57.9 $57.9 $57.7 $2,078 $2,536 $4,595 $6,591 $4,836 $5,003 $3,579 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q2 2023 Q2 2024 Retail New Vehicle Unit Sales Volume, Revenue, and Gross Profit Per Unit Unit Sales Volume (Thousands) Revenue Per Unit (Thousands) GPU 112.6 101.9 105.5 108.5 100.2 25.2 25.7 $22.1 $23.0 $27.5 $31.3 $30.4 $30.7 $28.5 $1,310 $1,207 $1,784 $1,607 $1,626 $1,765 $1,508 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q2 2023 Q2 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 • While new vehicle GPUs continue to decline, we believe the "new normal" will be significantly higher than pre-pandemic levels • 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-rental inventory supply returns to normal • 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 recover from pandemic-induced lows, F&I gross profit and fixed operations gross profit should benefit, partially offsetting vehicle gross margin normalization 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 • Target increasing technician headcount by 300 in FY 2024, projected to generate approximately $100M in incremental annualized fixed operations gross profit (headcount increased by 131 technicians year-to-date) • 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 FY 2019 to FY 2023, driven primarily by higher warranty contract penetration rates • We believe F&I GPU will remain structurally higher than pre- pandemic • 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 $1,620 $1,846 $2,160 $2,453 $2,403 $2,516 $2,380 77.4% 77.9% 77.6% 72.9% 71.2% 71.7% 72.1% 38.4% 40.9% 44.4% 49.4% 48.9% 50.3% 48.1% FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q2 2023 Q2 2024 F&I Gross Profit Per Unit and Product Penetration Rates F&I GPU Finance Contract Penetration Rate Warranty Penetration Rate $669 $595 $673 $787 $853 $215 $219 49.0% 49.8% 50.2% 49.5% 49.7% 49.7% 50.4% FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q2 2023 Q2 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 nearly 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 hybrid vehicle model offerings • 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 • BEV new vehicle GPU lags both hybrid and ICE vehicles, resulting in BEV sales negatively impacting total new vehicle GPU by approximately $170 in Q2 2024 (improved from $400 in Q1 2024) • 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 • Ongoing investment in BEV repair and maintenance capabilities (e.g. heavy-duty vehicle lifts, battery removal and storage needs, technician training) • Over 90% of Sonic’s franchised dealerships are equipped with electric vehicle charging capabilities 15.6% 7.4% Ja n- 19 M ay -1 9 Se p- 19 Ja n- 20 M ay -2 0 Se p- 20 Ja n- 21 M ay -2 1 Se p- 21 Ja n- 22 M ay -2 2 Se p- 22 Ja n- 23 M ay -2 3 Se p- 23 Ja n- 24 M ay -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 Re se ar ch 8 100% Luxury Import Domestic Total Sonic Q2 2024 Average New Vehicle GPU by Power Train BEV Hybrid ICE Average New Vehicle GPU Note: Average new vehicle GPU shown as a percentage of average GPU for each brand group and segment total.
NYSE SAH Strategic Focus – EchoPark Segment • Returned to positive segment adjusted EBITDA* of $7.3 Million in Q1 2024 and $7.2 Million in Q2 2024 after 3 years of industry- driven headwinds • Focus on leveraging retail sales volume momentum and improving used market backdrop to generate positive adjusted EBITDA* and significant year-over-year adjusted EBITDA* growth in FY 2024 • 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 Strategy * Refer to appendix for calculation and reconciliation of Adjusted EBITDA (a non-GAAP measure). Note: Adjusted EBITDA and footprint expansion projections are estimates of future results. 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 or gain/loss on property dispositions. 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. 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. $22.2 $16.7 $(27.0) $(70.1) $(49.5) $(18.4) $9.0 $(0.8) $(5.7) $(19.3) $(35.3) $(33.5) $(13.4) $(1.8) $(120) $(90) $(60) $(30) $- $30 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q2 2023 Q2 2024 EchoPark Segment Adjusted EBITDA* (Millions) EchoPark Operations (with Holding Company) Closed Stores 49,520 57,161 77,835 64,107 73,676 17,084 16,641 - 200 400 600 800 1,000 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q2 2023 Q2 2024M 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 50 18 9
NYSE SAH Strategic Focus – EchoPark Segment (continued) 10 • Anticipate positive retail used vehicle GPU throughout FY 2024 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 2024 • Expect used vehicle wholesale and retail prices to continue to gradually decline throughout FY 2024, 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 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, however, off-rental supply is improving which may provide an alternate source of inventory to mitigate the impact of fewer lease maturities • 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 $20.7 $10.7 $(47.8) $(105.4) $(83.0) $(31.8) $7.2 $2,296 $2,013 $1,762 $2,657 $2,183 $1,569 $3,078 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q2 2023 Q2 2024 EchoPark Segment Adjusted EBITDA* and Total GPU (Used GPU + F&I GPU) Adjusted EBITDA* (Millions) Total GPU Source: J.D. PowerVehicle 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.”
NYSE SAH 11 • Standardize operating playbooks and processes in existing stores to facilitate future organic and acquisition growth • Roll out 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 Kerrigan Blue Sky Report and Haig Report. Multiples are typically applied to a normalized dealership earnings before taxes. Luxury includes: Porsche, Lexus, Mercedes-Benz, BMW, Jaguar Land Rover and Audi Other Luxury includes: Volvo, Acura, Cadillac, Lincoln, Infiniti Import includes: Toyota, Honda, Subaru, Nissan, Mazda, Kia, Hyundai, VW Domestic includes: Chevrolet, Buick, GMC, Ford, Chrysler, Jeep, Dodge, RAM Acquisition Multiple Dealership Type Low High Luxury 6.3x 10.0x Other Luxury 2.0x 4.8x Import 2.5x 7.8x Domestic 2.5x 4.5x Powersports 2.0x 3.0x 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.” $3.4 $7.9 $(2.4) $(0.8) $2.3 $(4.0) $(2.0) $- $2.0 $4.0 $6.0 $8.0 $10.0 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Powersports Segment Adjusted EBITDA* (Millions) Industry Seasonally Weak In Q4 & Q1
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 200% since 2019, current yield over 2.0% • Reduced outstanding shares by 21% since 2019 ($260 million remaining authorization, or nearly 15% of market cap) • Net debt to adjusted EBITDA ratio* of 2.12 for the 12 months ended Q2 2024 is within our target leverage range Consolidated Company Strategy $29 $244 $399 $501 $374 $467 $280 $526 $703 $794 $846 $885 $- $200 $400 $600 $800 $1,000 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 6/30/2024 $ 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 August 1, 2024. 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 $126 $127 $298 $227 $204 $72 $93 $262 $178 $16 $17 $18 $35 $40 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 $ 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 2024 Outlook • Expect low single digit percentage growth in revenues and mid single digit percentage decline in gross profit, driven by: • Continued normalization of new vehicle GPU, potentially exiting 2024 in the $3,000 per unit range, with >60 days’ supply by Q4 2024 • Low single digit percentage growth in new and used retail sales volume, consistent with industry SAAR outlook • Mid single digit percentage growth in fixed operations gross profit • Low single digit percentage F&I gross profit growth, driven by higher retail unit volume and flat F&I GPU near $2,400 per unit • Expect adjusted SG&A expenses as a % of gross profit* in low 70% range Consolidated • Expect lower Franchised Dealerships Segment earnings to be partially offset by higher earnings in our EchoPark and Powersports Segments • Expect $15-20 million increase in annual floor plan interest expense due to higher new inventory levels and higher average interest rates vs. FY 2023 • Earnings per share results will be primarily dependent upon rate of normalization of new vehicle GPU and rate of EchoPark profitability improvement Franchised Dealerships Segment EchoPark Segment • Achieved positive adjusted EBITDA* of $7.3 million in Q1 2024 and $7.2 million in Q2 2024, and remain confident in ability to maintain positive quarterly adjusted EBITDA* for the remainder of FY 2024, driven by: • Organic growth opportunities at existing store footprint, driven by higher unit volume throughput per store and positive used vehicle GPU • Expect low double digit percentage F&I GPU growth year-over-year • Expect SG&A expenses as a % of gross profit in the 80% range (target below 70% at maturity) Powersports Segment • Expect FY 2024 adjusted EBITDA* between $10-$13 million, with majority coming in Q3 (Q1 & Q4 near breakeven due to seasonality) * Refer to appendix for calculation and reconciliation of Adjusted EBITDA (a non-GAAP measure). Note: Above outlook is based on projections. Actual results may differ. See “Forward-Looking Statements.” Financial data may also include certain forward-looking information that is not presented in accordance with GAAP. We believe that a quantitative reconciliation of such forward-looking information to the most directly comparable GAAP financial measure cannot be made available without unreasonable efforts, because a reconciliation of these non-GAAP financial measures would require an estimate of future non-operating items such as impairment charges, gain/loss on property dispositions, and/or non-recurring SG&A expenses. Neither the timing nor likelihood of these events, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of such forward-looking information to the most directly comparable GAAP financial measure is not provided. 13
Appendix: Financial Tables & Non-GAAP Reconciliations
NYSE SAH GAAP Income Statement – Annual Trend – Consolidated 15 NM = Not MeaningfulNote: Earnings (loss) per share and gross profit per unit metrics are calculated based on actual unrounded amounts. FY 2023 Better / (Worse) % Change (In millions, except unit, per unit, and per share data) FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 Year-Over-Year Revenues: Retail new vehicles 6,304.6$ 5,622.6$ 4,993.4$ 4,224.4$ 4,777.3$ 12% Fleet new vehicles 92.2 99.4 124.6 56.8 111.9 (7%) Total new vehicles 6,396.8 5,722.0 5,118.0 4,281.2 4,889.2 12% Used vehicles 5,213.6 5,515.4 4,933.6 3,604.2 3,490.0 (5%) Wholesale vehicles 318.8 484.9 367.2 197.4 202.8 (34%) Total vehicles 11,929.2 11,722.3 10,418.8 8,082.8 8,582.0 2% Parts, service and collision repair 1,759.5 1,599.7 1,340.4 1,194.3 1,395.3 10% Finance, insurance and other, net ("F&I") 683.7 679.1 637.2 489.9 477.0 1% Total revenues 14,372.4 14,001.1 12,396.4 9,767.0 10,454.3 3% Gross profit: Retail new vehicles 535.4 662.8 459.8 233.2 231.7 (19%) Fleet new vehicles 4.0 4.9 1.6 0.9 1.4 (18%) Total new vehicles 539.4 667.7 461.4 234.1 233.1 (19%) Used vehicles 151.2 180.8 133.0 105.2 147.4 (16%) Wholesale vehicles (2.6) (3.1) 9.6 0.1 (4.5) 16% Total vehicles 688.0 845.4 604.0 339.4 376.0 (19%) Parts, service and collision repair 874.0 792.5 673.1 594.3 668.0 10% Finance, insurance and other, net 683.7 679.1 637.2 489.9 477.0 1% Total gross profit 2,245.7 2,317.0 1,914.3 1,423.6 1,521.0 (3%) SG&A expenses (1,600.5) (1,555.1) (1,274.7) (1,028.7) (1,099.4) (3%) Impairment charges (79.3) (320.4) (0.1) (270.0) (20.8) NM Depreciation and amortization (142.3) (127.5) (101.1) (91.0) (93.1) (12%) Operating income (loss) 423.6 314.0 538.4 33.9 307.7 35% Interest expense, floor plan (67.2) (34.3) (16.7) (27.2) (48.5) (96%) Interest expense, other, net (114.6) (89.9) (48.0) (41.6) (53.0) (27%) Other income (expense), net 0.1 0.2 (15.5) 0.1 (6.6) NM Income (loss) from continuing operations before taxes 241.9 190.0 458.2 (34.8) 199.6 27% Income tax benefit (expense) (63.7) (101.5) (109.3) (15.9) (55.1) 37% Net income (loss) from continuing operations 178.2$ 88.5$ 348.9$ (50.7)$ 144.5$ 101% Diluted weighted-average shares outstanding 35.9 39.7 43.3 42.5 43.7 10% Diluted earnings (loss) per share from continuing operations 4.97$ 2.23$ 8.06$ (1.21)$ 3.30$ 123% Unit sales volume: Retail new vehicles 112,110 101,168 99,943 91,939 111,457 11% Fleet new vehicles 2,000 2,115 3,543 1,342 2,674 (5%) Used vehicles 176,147 173,209 183,292 159,025 162,149 2% Wholesale vehicles 32,330 35,323 36,795 32,057 34,153 (8%) Gross profit per unit ("GPU"): Retail new vehicles 4,776$ 6,552$ 4,600$ 2,536$ 2,078$ (27%) Used vehicles 859$ 1,043$ 720$ 667$ 909$ (18%) F&I 2,372$ 2,475$ 2,250$ 1,952$ 1,743$ (4%)
NYSE SAH Non-GAAP Reconciliation – Annual Trend – Consolidated 16 Note: Earnings (loss) per share and SG&A expenses as a percentage of gross profit metrics are calculated based on actual unrounded amounts. Note: Balance sheet amounts are as of December 31 for the FY then ended, balance sheet amounts for LTM Q2 2024 are as of June 30, 2024. (In millions, except per share data) LTM Q2 2024 FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 Reported net income (loss) from continuing operations 178.2$ 88.5$ 348.9$ (50.7)$ 144.5$ Adjustments: Impairment charges 79.3$ 320.4$ -$ 269.2$ 19.6$ Acquisition and disposition-related (gain) loss (20.7) (9.1) 1.2 (9.2) (76.0) Severance and long-term compensation charges 5.1 4.4 6.5 - 6.3 Loss on debt extinguishment - - 15.6 - 7.2 Legal and storm damage charges 1.9 - - - - Loss (gain) on exit of leased dealerships 4.3 - - - - Used vehicle inventory valuation adjustment 10.0 - - - - Total pre-tax adjustments 79.9 315.7 23.3 260.0 (42.9) Tax effect of above items (19.9) (22.6) (5.9) (40.4) 14.2 Non-recurring tax items 5.8 - - - - Total net income effect of adjustments 65.8 293.1 17.4 219.6 (28.7) Adjusted net income (loss) from continuing operations 244.0$ 381.6$ 366.3$ 168.9$ 115.8$ Diluted weighted-average shares outstanding 35.9 39.7 43.3 43.9 43.7 Adjusted diluted earnings (loss) per share from continuing operations 6.81$ 9.61$ 8.46$ 3.85$ 2.65$ Reported SG&A expenses (1,600.5)$ (1,555.1)$ (1,274.7)$ (1,028.7)$ (1,099.4)$ Acquisition and disposition-related (gain) loss (20.7) (9.1) 1.2 (9.2) (76.0) Severance and long-term compensation charges 5.1 4.4 6.5 - 6.3 Legal and storm damage charges 1.9 - - - - Loss (gain) on exit of leased dealerships 4.3 - - - - Adjusted SG&A expenses (1,609.9)$ (1,559.8)$ (1,267.0)$ (1,037.9)$ (1,169.1)$ Adjusted SG&A expenses as a percentage of gross profit 71.4% 67.3% 66.2% 72.9% 76.9% Reported net income (loss) 190.3$ 178.2$ 88.5$ 348.9$ (51.4)$ 144.1$ Income tax (benefit) expense 68.8 63.7 101.5 109.3 15.6 55.0 Income (loss) before taxes 259.1 241.9 190.0 458.2 (35.8) 199.1 Non-floor plan interest 109.4 108.1 84.7 44.7 38.7 50.5 Depreciation and amortization 151.1 148.8 132.7 104.3 93.9 95.6 Stock-based compensation expense 23.0 23.3 16.0 15.0 11.7 10.8 Loss (gain) on exit of leased dealerships 0.9 4.3 - - - (0.2) Impairment charges 19.1 79.3 320.4 0.1 270.0 20.8 Loss on debt extinguishment 0.6 - - 15.6 - 6.7 Severance and long-term compensation charges 6.0 5.1 4.4 8.0 - - Excess compensation related to CDK outage 11.6 - - - - - Acquisition and disposition-related (gain) loss (1.0) (20.4) (9.7) (0.4) (8.2) (74.8) Hail and storm damage charges 3.6 1.9 - - - - Used vehicle inventory valuation adjustment - 10.0 - - - - Closed store accrued expenses 2.1 - - - - - Adjusted EBITDA 585.5$ 602.3$ 738.5$ 645.5$ 370.3$ 308.5$ Long-term debt (including current portion) 1,708.0$ 1,676.6$ 1,751.7$ 1,561.2$ 720.1$ 706.9$ Cash and equivalents (67.2) (28.9) (229.2) (299.4) (170.3) (29.1) Floor plan deposit balance (400.0) (345.0) (272.0) (99.8) (73.2) - Net debt 1,240.8$ 1,302.7$ 1,250.5$ 1,162.0$ 476.6$ 677.8$ Net debt to adjusted EBITDA ratio 2.12 2.16 1.69 1.80 1.29 2.20 Long-term debt (including current portion) to adjusted EBITDA ratio 2.92 2.78 2.37 2.42 1.94 2.29
NYSE SAH GAAP Income Statement – Quarterly Trend – Consolidated 17 NM = Not MeaningfulNote: Earnings (loss) per share and gross profit per unit metrics are calculated based on actual unrounded amounts. Q2 2024 Better / (Worse) % Change (In millions, except unit, per unit, and per share data) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Sequential Year-Over-Year Revenues: Retail new vehicles 1,552.6$ 1,455.8$ 1,680.2$ 1,573.5$ 1,608.2$ 7% (3%) Fleet new vehicles 26.2 19.6 21.8 23.2 28.3 34% (7%) Total new vehicles 1,578.8 1,475.4 1,702.0 1,596.7 1,636.5 7% (4%) Used vehicles 1,186.2 1,215.6 1,222.4 1,340.4 1,305.9 (2%) (9%) Wholesale vehicles 71.3 77.3 62.6 79.3 91.5 (8%) (22%) Total vehicles 2,836.3 2,768.3 2,987.0 3,016.4 3,033.9 2% (7%) Parts, service and collision repair 444.1 446.7 431.9 453.4 443.7 (1%) 0% Finance, insurance and other, net ("F&I") 172.6 169.0 166.0 173.7 175.3 2% (2%) Total revenues 3,453.0 3,384.0 3,584.9 3,643.5 3,652.9 2% (5%) Gross profit: Retail new vehicles 97.8 96.4 124.5 131.4 141.4 1% (31%) Fleet new vehicles 1.0 0.7 0.9 0.9 1.3 55% (23%) Total new vehicles 98.8 97.1 125.4 132.3 142.7 2% (31%) Used vehicles 44.7 47.0 37.5 52.3 31.5 (5%) 42% Wholesale vehicles (0.6) (0.8) (3.2) (1.4) (1.0) 17% 40% Total vehicles 142.9 143.3 159.7 183.2 173.2 0% (17%) Parts, service and collision repair 223.6 223.9 215.4 225.3 220.4 0% 1% Finance, insurance and other, net 172.6 169.0 166.0 173.7 175.3 2% (2%) Total gross profit 539.1 536.2 541.1 582.2 568.9 1% (5%) SG&A expenses (393.0) (392.2) (386.3) (409.6) (391.9) 0% 0% Impairment charges (1.4) (1.0) (16.7) - (62.6) NM NM Depreciation and amortization (37.0) (36.3) (36.6) (35.2) (36.1) (2%) (2%) Operating income (loss) 107.7 106.7 101.5 137.4 78.3 1% 38% Interest expense, floor plan (22.2) (20.3) (18.4) (17.4) (17.0) (10%) (31%) Interest expense, other, net (29.3) (29.0) (28.3) (29.0) (28.9) (1%) (1%) Other income (expense), net (0.5) 0.1 (0.1) 0.2 0.1 NM NM Income (loss) before taxes 55.7 57.5 54.7 91.2 32.5 (3%) 71% Income tax benefit (expense) (14.5) (15.5) (16.0) (22.8) (9.1) 7% (59%) Net income (loss) 41.2$ 42.0$ 38.7$ 68.4$ 23.4$ (2%) 76% Diluted weighted-average shares outstanding 34.9 34.9 34.8 35.6 36.0 0% 3% Diluted earnings (loss) per share 1.18$ 1.20$ 1.11$ 1.92$ 0.65$ (2%) 82% Unit sales volume: Retail new vehicles 27,705 26,142 29,439 28,260 28,754 6% (4%) Fleet new vehicles 514 379 500 469 590 36% (13%) Used vehicles 42,831 44,056 42,216 45,428 42,972 (3%) 0% Wholesale vehicles 7,859 8,112 7,127 7,996 8,801 (3%) (11%) Gross profit per unit ("GPU"): Retail new vehicles 3,531$ 3,688$ 4,230$ 4,649$ 4,918$ (4%) (28%) Used vehicles 1,044$ 1,068$ 888$ 1,150$ 732$ (2%) 43% F&I 2,447$ 2,407$ 2,317$ 2,357$ 2,445$ 2% 0%
NYSE SAH Non-GAAP Reconciliation – Quarterly Trend – Consolidated 18 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. Q2 2024 Better / (Worse) % Change (In millions, except per share data) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Sequential Year-Over-Year Reported net income (loss) 41.2$ 42.0$ 38.7$ 68.4$ 23.4$ (2%) 76% Adjustments: Impairment charges 1.4$ 1.0$ 16.7$ -$ 62.6$ NM NM Acquisition and disposition-related (gain) loss (0.6) - - - (20.7) NM NM Severance and long-term compensation charges 0.7 4.3 - 0.9 2.2 NM NM Hail and storm damage charges 3.6 - - - 1.9 NM NM Loss (gain) on exit of leased dealerships (3.0) - - 3.9 0.4 NM NM Used vehicle inventory valuation adjustment - - - - 10.0 NM NM Closed store accrued expenses - 2.1 - - - NM NM Excess compensation related to CDK outage 11.6 - - - - NM NM Total pre-tax adjustments 13.7 7.4 16.7 4.8 56.4 NM NM Tax effect of above items (3.6) (1.9) (4.3) (1.2) (13.8) NM NM Non-recurring tax items - - 5.8 - - NM NM Total net income effect of adjustments 10.1 5.5 18.2 3.6 42.6 NM NM Adjusted net income (loss) 51.3$ 47.5$ 56.9$ 72.0$ 66.0$ 8% (22%) Diluted weighted-average shares outstanding 34.9 34.9 34.8 35.6 36.0 0% 3% Adjusted diluted earnings (loss) per share 1.47$ 1.36$ 1.63$ 2.02$ 1.83$ 8% (20%) Reported gross profit 539.1$ 536.2$ 541.1$ 582.2$ 568.9$ 1% (5%) Excess compensation related to CDK outage 2.0 - - - - NM NM Used vehicle inventory valuation adjustment - - - - 10.0 NM NM Adjusted gross profit 541.1$ 536.2$ 541.1$ 582.2$ 578.9$ 1% (7%) Reported SG&A expenses (393.0)$ (392.2)$ (386.3)$ (409.6)$ (391.9)$ 0% 0% Acquisition and disposition-related (gain) loss (0.6) - - - (20.7) NM NM Severance and long-term compensation charges 0.7 4.3 - 0.9 2.2 NM NM Hail and storm damage charges 3.6 - - - 1.9 NM NM Loss (gain) on exit of leased dealerships (3.0) - - 3.9 0.4 NM NM Closed store accrued expenses - 2.1 - - - NM NM Excess compensation related to CDK outage 9.6 - - - - NM NM Adjusted SG&A expenses (382.7)$ (385.8)$ (386.3)$ (404.8)$ (408.1)$ 1% 6% Adjusted SG&A expenses as a percentage of gross profit 70.7% 72.0% 71.4% 69.5% 70.5% 130 bps (20) bps Reported net income (loss) 41.2$ 42.0$ 38.7$ 68.4$ 23.4$ (2%) 76% Income tax (benefit) expense 14.5 15.5 16.0 22.8 9.1 NM NM Income (loss) before taxes 55.7 57.5 54.7 91.2 32.5 (3%) 71% Non-floor plan interest 28.0 27.4 26.7 27.3 27.2 NM NM Depreciation and amortization 38.0 37.9 38.3 36.9 37.7 NM NM Stock-based compensation expense 5.9 4.4 6.0 6.7 5.6 NM NM Loss (gain) on exit of leased dealerships (3.0) - - 3.9 0.4 NM NM Impairment charges 1.4 1.0 16.7 - 62.6 NM NM Loss on debt extinguishment 0.6 - - - - NM NM Severance and long-term compensation charges 0.8 4.3 - 0.9 2.2 NM NM Excess compensation related to CDK outage 11.6 - - - - NM NM Acquisition and disposition-related (gain) loss (1.3) - - 0.3 (20.7) NM NM Closed store accrued expenses - 2.1 - - - NM NM Hail and storm damage charges 3.6 - - - 1.9 NM NM Used vehicle inventory valuation adjustment - - - - 10.0 NM NM Adjusted EBITDA 141.3$ 134.6$ 142.4$ 167.2$ 159.4$ 5% (11%)
NYSE SAH GAAP Income Statement – Annual Trend – Franchised Dealerships Segment 19 NM = Not MeaningfulNote: Gross profit per unit metrics are calculated based on actual unrounded amounts. FY 2023 Better / (Worse) % Change (In millions, except unit and per unit data) FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 Year-Over-Year Revenues: Retail new vehicles 6,215.0$ 5,581.6$ 4,984.4$ 4,224.4$ 4,777.3$ 11% Fleet new vehicles 92.2 99.4 124.6 56.8 111.9 (7%) Total new vehicles 6,307.2 5,681.0 5,109.0 4,281.2 4,889.2 11% Used vehicles 3,050.3 3,391.5 2,901.0 2,345.9 2,493.5 (10%) Wholesale vehicles 204.5 314.0 257.2 168.7 180.0 (35%) Total vehicles 9,562.0 9,386.5 8,267.2 6,795.8 7,562.7 2% Parts, service and collision repair 1,714.2 1,588.0 1,340.4 1,194.4 1,366.5 8% Finance, insurance and other, net ("F&I") 498.6 510.1 443.5 357.8 363.1 (2%) Total revenues 11,774.8 11,484.6 10,051.1 8,348.0 9,292.3 3% Gross profit: Retail new vehicles 518.7 655.3 458.8 233.2 231.7 (21%) Fleet new vehicles 4.0 4.9 1.5 0.9 1.4 (18%) Total new vehicles 522.7 660.2 460.3 234.1 233.1 (21%) Used vehicles 162.9 174.5 188.1 122.9 147.5 (7%) Wholesale vehicles (3.2) (6.4) 0.6 (0.8) (4.1) 49% Total vehicles 682.4 828.3 649.0 356.2 376.5 (18%) Parts, service and collision repair 852.7 786.7 673.1 595.4 669.0 8% Finance, insurance and other, net 498.5 510.1 443.5 357.8 363.1 (2%) Total gross profit 2,033.6 2,125.1 1,765.6 1,309.4 1,408.6 (4%) SG&A expenses (1,314.6) (1,273.0) (1,076.9) (933.7) (1,011.8) (3%) Impairment charges (1.0) (115.5) - (270.0) (1.1) NM Depreciation and amortization (112.3) (101.8) (84.8) (79.9) (82.6) (10%) Operating income (loss) 605.7 634.8 603.9 25.8 313.1 (5%) Interest expense, floor plan (49.1) (23.6) (11.8) (24.0) (45.1) (108%) Interest expense, other, net (109.7) (85.1) (46.3) (40.7) (51.2) (29%) Other income (expense), net 0.1 - (15.5) 0.1 (6.6) NM Income (loss) from continuing operations before taxes 447.0$ 526.1$ 530.3$ (38.8)$ 210.2$ (15%) Unit sales volume: Retail new vehicles 107,257 99,424 99,815 91,939 111,457 8% Fleet new vehicles 2,000 2,115 3,543 1,342 2,674 (5%) Used vehicles 100,210 108,512 105,457 101,864 112,629 (8%) Wholesale vehicles 20,602 24,052 25,128 24,879 28,379 (14%) Gross profit per unit ("GPU"): Retail new vehicles 4,836$ 6,591$ 4,595$ 2,536$ 2,078$ (27%) Used vehicles 1,626$ 1,607$ 1,784$ 1,207$ 1,310$ 1% F&I 2,403$ 2,453$ 2,160$ 1,846$ 1,620$ (2%)
NYSE SAH Non-GAAP Reconciliation – Annual Trend – Franchised Dealerships Segment 20 Note: SG&A expenses as a percentage of gross profit metrics are calculated based on actual unrounded amounts. (In millions) FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 Reported income (loss) before taxes 447.0$ 526.1$ 530.3$ (38.8)$ 210.2$ Impairment charges 1.0 115.5 - 270.0 1.1 Segment income (loss) 448.0$ 641.6$ 530.3$ 231.2$ 211.3$ Acquisition and disposition-related (gain) loss (20.9) (9.1) 1.2 (4.0) (76.0) Severance and long-term compensation charges - 4.4 - - 6.3 Loss on debt extinguishment - - 15.6 - 7.2 Hail and storm damage charges 1.9 - - - - Adjusted segment income (loss) 429.0$ 636.9$ 547.1$ 227.2$ 148.8$ Reported SG&A expenses (1,314.6)$ (1,273.0)$ (1,076.9)$ (933.7)$ (1,011.8)$ Acquisition and disposition-related (gain) loss (20.9) (9.1) 1.2 (4.0) (76.0) Severance and long-term compensation charges - 4.4 - - 6.3 Hail and storm damage charges 1.9 - - - - Adjusted SG&A expenses (1,333.6)$ (1,277.7)$ (1,075.7)$ (937.7)$ (1,081.5)$ Adjusted SG&A expenses as a percentage of gross profit 65.6% 60.1% 60.9% 71.6% 76.8% Income (loss) before taxes 447.0 526.1 530.3 (38.8) 210.2 Non-floor plan interest 103.2 80.0 43.0 37.7 48.8 Depreciation and amortization 118.8 107.0 87.9 82.8 85.0 Stock-based compensation expense 23.3 16.0 15.0 11.7 10.8 Loss (gain) on exit of leased dealerships - - - - (0.2) Impairment charges 1.0 115.5 15.6 270.0 1.1 Loss on debt extinguishment - - - - 6.7 Severance and long-term compensation charges - 4.4 - - - Excess compensation related to CDK outage (20.7) (9.7) - (3.1) (74.8) Acquisition and disposition-related (gain) loss 1.9 - - - - Adjusted EBITDA 674.5$ 839.3$ 691.8$ 360.3$ 287.6$
NYSE SAH GAAP Income Statement – Quarterly Trend – Franchised Dealerships Segment 21 NM = Not MeaningfulNote: Gross profit per unit metrics are calculated based on actual unrounded amounts. Q2 2024 Better / (Worse) % Change (In millions, except unit and per unit data) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Sequential Year-Over-Year Revenues: Retail new vehicles 1,530.9$ 1,439.9$ 1,664.1$ 1,546.7$ 1,583.3$ 6% (3%) Fleet new vehicles 26.2 19.6 21.8 23.2 28.3 34% (7%) Total new vehicles 1,557.1 1,459.5 1,685.9 1,569.9 1,611.6 7% (3%) Used vehicles 732.1 729.3 727.5 780.7 774.5 0% (5%) Wholesale vehicles 48.4 48.6 39.3 51.4 55.6 0% (13%) Total vehicles 2,337.6 2,237.4 2,452.7 2,402.0 2,441.7 4% (4%) Parts, service and collision repair 434.4 439.9 425.2 431.8 433.4 (1%) 0% Finance, insurance and other, net ("F&I") 124.2 119.6 123.2 126.0 132.2 4% (6%) Total revenues 2,896.2 2,796.9 3,001.1 2,959.8 3,007.3 4% (4%) Gross profit: Retail new vehicles 94.9 94.1 122.2 125.5 136.9 1% (31%) Fleet new vehicles 1.0 0.7 0.9 0.9 1.3 55% (23%) Total new vehicles 95.9 94.8 123.1 126.4 138.2 1% (31%) Used vehicles 38.7 40.8 35.1 42.6 44.5 (5%) (13%) Wholesale vehicles (0.5) (0.2) (2.7) (1.5) (1.0) (169%) 50% Total vehicles 134.1 135.4 155.5 167.5 181.7 (1%) (26%) Parts, service and collision repair 219.0 220.8 212.6 215.1 215.4 (1%) 2% Finance, insurance and other, net 124.2 119.6 123.2 126.0 132.2 4% (6%) Total gross profit 477.3 475.8 491.3 508.6 529.3 0% (10%) SG&A expenses (347.9) (338.5) (329.1) (338.3) (316.1) (3%) (10%) Impairment charges - (1.0) (1.0) - - NM NM Depreciation and amortization (30.4) (29.8) (29.4) (28.2) (27.9) (2%) (9%) Operating income (loss) 99.0 106.5 131.8 142.1 185.3 (7%) (47%) Interest expense, floor plan (18.0) (16.0) (14.6) (12.9) (11.9) (13%) (53%) Interest expense, other, net (27.8) (27.8) (27.5) (27.9) (27.5) 0% (1%) Other income (expense), net (0.5) - 0.1 0.2 - NM NM Income (loss) before taxes 52.7$ 62.7$ 89.8$ 101.5$ 145.9$ (16%) (64%) Unit sales volume: Retail new vehicles 26,512 25,297 28,491 26,869 27,358 5% (3%) Fleet new vehicles 514 379 500 469 590 36% (13%) Used vehicles 25,668 25,666 24,365 25,541 25,197 0% 2% Wholesale vehicles 5,248 5,105 4,440 5,163 5,516 3% (5%) Gross profit per unit ("GPU"): Retail new vehicles 3,579$ 3,722$ 4,289$ 4,672$ 5,003$ (4%) (28%) Used vehicles 1,508$ 1,592$ 1,440$ 1,666$ 1,765$ (5%) (15%) F&I 2,380$ 2,348$ 2,330$ 2,403$ 2,516$ 1% (5%)
NYSE SAH Non-GAAP Reconciliation – Quarterly Trend – Franchised Dealerships Segment 22 NM = Not MeaningfulNote: SG&A expenses as a percentage of gross profit metrics are calculated based on actual unrounded amounts. Q2 2024 Better / (Worse) % Change (In millions) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Sequential Year-Over-Year Reported income (loss) before taxes 52.7$ 62.7$ 89.8$ 101.5$ 145.9$ (16%) (64%) Impairment charges - 1.0 1.0 - - NM NM Segment income (loss) 52.7$ 63.7$ 90.8$ 101.5$ 145.9$ (17%) (64%) Acquisition and disposition-related (gain) loss - - - - (20.9) NM NM Long-term compensation charges - 2.2 - - - NM NM Hail and storm damage charges 3.6 - - - 1.9 NM NM Excess compensation related to CDK outage 11.2 - - - - NM NM Adjusted segment income (loss) 67.5$ 65.9$ 90.8$ 101.5$ 126.9$ 2% (47%) Reported gross profit 477.3$ 475.8$ 491.4$ 508.6$ 529.3$ 0% (10%) Excess compensation related to CDK outage 2.0 - - - - NM NM Adjusted gross profit 479.3$ 475.8$ 491.4$ 508.6$ 529.3$ 1% (9%) Reported SG&A expenses (347.9)$ (338.5)$ (329.1)$ (338.3)$ (316.1)$ (3%) (10%) Acquisition and disposition-related (gain) loss - - - - (20.9) NM NM Long-term compensation charges - 2.2 - - - NM NM Hail and storm damage charges 3.6 - - - 1.9 NM NM Excess compensation related to CDK outage 9.2 - - - - NM NM Adjusted SG&A expenses (335.1)$ (336.3)$ (329.1)$ (338.3)$ (335.1)$ 0% 0% Adjusted SG&A expenses as a percentage of gross profit 69.9% 70.7% 67.0% 66.5% 63.3% 80 bps (660) bps Income (loss) before taxes 52.7$ 62.7$ 89.8$ 101.5$ 145.9$ (16%) (64%) Non-floor plan interest 26.5 26.3 25.9 26.2 25.8 NM NM Depreciation and amortization 31.6 31.5 31.2 29.9 29.3 NM NM Stock-based compensation expense 5.9 4.4 6.0 6.7 5.6 NM NM Impairment charges - 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 11.2 - - - - NM NM Acquisition and disposition-related (gain) loss (0.3) - - 0.2 (20.7) NM NM Hail and storm damage charges 3.6 - - - 1.9 NM NM Adjusted EBITDA 131.8$ 128.1$ 153.9$ 164.5$ 187.8$ 3% (30%)
NYSE SAH GAAP Income Statement – Annual Trend – EchoPark Segment 23 NM = Not MeaningfulNote: Gross profit per unit metrics are calculated based on actual unrounded amounts. FY 2023 Better / (Worse) % Change (In millions, except unit, per unit, and per share data) FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 Year-Over-Year Revenues: Total new vehicles 1.0$ 9.2$ 9.0$ -$ -$ (89%) Used vehicles 2,143.8 2,116.8 2,032.6 1,258.2 1,025.3 1% Wholesale vehicles 111.7 170.6 110.0 28.7 22.9 (35%) Total vehicles 2,256.5 2,296.6 2,151.6 1,286.9 1,048.2 (2%) Finance, insurance and other, net ("F&I") 177.9 166.4 193.7 132.1 113.8 7% Total revenues 2,434.4 2,463.0 2,345.3 1,419.0 1,162.0 (1%) Gross profit: Total new vehicles 0.1 1.1 1.1 - - (93%) Used vehicles (17.1) 4.4 (55.2) (18.0) (1.0) (490%) Wholesale vehicles 0.9 3.2 9.2 (0.1) (0.4) (74%) Total vehicles (16.1) 8.7 (44.9) (18.1) (1.4) (286%) Finance, insurance and other, net 177.9 166.4 193.7 132.1 113.8 7% Total gross profit 161.8 175.1 148.8 114.0 112.4 (8%) SG&A expenses (247.0) (269.9) (197.8) (94.9) (87.6) 8% Impairment charges (78.3) (204.9) (0.1) - (19.7) NM Depreciation and amortization (26.6) (24.6) (16.3) (11.0) (10.5) (8%) Operating income (loss) (190.1) (324.3) (65.4) 8.1 (5.4) 41% Interest expense, floor plan (17.4) (10.6) (5.0) (3.2) (3.5) (64%) Interest expense, other, net (3.2) (3.9) (1.7) (0.9) (1.7) 17% Other income (expense), net (0.1) - - - 0.1 NM Income (loss) from continuing operations before taxes (210.8)$ (338.8)$ (72.1)$ 4.0$ (10.5)$ 38% Unit sales volume: Retail new vehicles 11 152 128 - - (93%) Used vehicles 73,676 64,107 77,835 57,161 49,520 15% Wholesale vehicles 11,512 11,236 11,667 7,178 5,774 2% Gross profit per unit ("GPU"): Retail new vehicles 6,934$ 7,510$ 8,303$ N/A N/A (8%) Total used vehicle and F&I 2,183$ 2,657$ 1,762$ 2,013$ 2,296$ (18%)
NYSE SAH Non-GAAP Reconciliation – Annual Trend – EchoPark Segment 24 Note: SG&A expenses as a percentage of gross profit metrics are calculated based on actual unrounded amounts. (In millions) FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 Reported income (loss) before taxes (210.8)$ (338.8)$ (72.1)$ 4.0$ (10.5)$ Impairment charges 78.3 204.9 0.1 - 19.7 Segment income (loss) (132.5)$ (133.9)$ (72.0)$ 4.0$ 9.2$ Acquisition and disposition-related (gain) loss 0.2 - - (5.2) - Severance and long-term compensation charges 5.1 - 6.5 - - Loss (gain) on exit of leased dealerships 4.3 - - - - Used vehicle inventory valuation adjustment 10.0 - - - - Adjusted segment income (loss) (112.9)$ (133.9)$ (65.5)$ (1.2)$ 9.2$ Reported SG&A expenses (247.0)$ (269.9)$ (197.8)$ (94.9)$ (87.6)$ Acquisition and disposition-related (gain) loss 0.2 - - (5.2) - Severance and long-term compensation charges 5.1 - 6.5 - - Loss (gain) on exit of leased dealerships 4.3 - - - - Adjusted SG&A expenses (237.4)$ (269.9)$ (191.3)$ (100.1)$ (87.6)$ Adjusted SG&A expenses as a percentage of gross profit 138.2% 154.1% 128.6% 87.6% 77.9% Income (loss) before taxes (210.8) (338.8) (72.1) 4.1 (10.5) Non-floor plan interest 3.2 3.7 1.7 0.9 1.8 Depreciation and amortization 26.6 24.8 16.4 11.2 10.4 Loss (gain) on exit of leased dealerships 4.3 - - - - Impairment charges 78.3 204.9 0.1 - 19.7 Severance and long-term compensation charges 5.1 - 8.0 - - Acquisition and disposition-related (gain) loss 0.3 - (0.4) (5.2) - Used vehicle inventory valuation adjustment 10.0 - - - - Adjusted EBITDA (83.0)$ (105.4)$ (46.3)$ 11.0$ 21.4$ Adjusted EBITDA - Closed Stores (33.5)$ (35.3)$ (19.3)$ (5.7)$ (0.8)$ Adjusted EBITDA - EchoPark Operations (with Holding Company) (49.5) (70.1) (27.0) 16.7 22.2 Adjusted EBITDA - Total EchoPark Segment (83.0)$ (105.4)$ (46.3)$ 11.0$ 21.4$
NYSE SAH GAAP Income Statement – Quarterly Trend – EchoPark Segment 25 NM = Not MeaningfulNote: Gross profit per unit metrics are calculated based on actual unrounded amounts. Q2 2024 Better / (Worse) % Change (In millions, except unit and per unit data) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Sequential Year-Over-Year Revenues: Used vehicles 448.9$ 482.9$ 492.5$ 554.8$ 524.0$ (7%) (14%) Wholesale vehicles 21.9 28.6 22.7 26.5 35.5 (24%) (38%) Total vehicles 470.8 511.5 515.1 581.4 559.5 (8%) (16%) Finance, insurance and other, net ("F&I") 46.5 47.9 41.5 45.3 41.1 (3%) 13% Total revenues 517.3 559.4 556.6 626.7 600.6 (8%) (14%) Gross profit: Used vehicles 4.7 5.3 1.7 7.3 (14.3) (11%) 133% Wholesale vehicles (0.1) (0.6) (0.4) 0.2 - 80% (100%) Total vehicles 4.6 4.7 1.3 7.5 (14.3) (4%) 132% Finance, insurance and other, net 46.5 47.9 41.5 45.3 41.1 (3%) 13% Total gross profit 51.1 52.6 42.8 52.8 26.8 (3%) 91% SG&A expenses (37.2) (45.6) (48.0) (58.6) (66.6) 18% 44% Impairment charges (1.4) - (15.7) - (62.6) NM NM Depreciation and amortization (5.6) (5.5) (6.2) (6.1) (7.4) (2%) 24% Operating income (loss) 6.9 1.5 (27.1) (11.9) (109.8) 347% 106% Interest expense, floor plan (3.8) (3.8) (3.8) (4.3) (4.8) 0% 21% Interest expense, other, net (0.7) (0.7) (0.7) (0.7) (0.9) (4%) 22% Other income (expense), net 0.1 0.1 - - 0.1 NM NM Income (loss) before taxes 2.5$ (2.9)$ (31.6)$ (16.9)$ (115.4)$ 185% 102% Unit sales volume: Used vehicles 16,641 17,981 17,562 19,050 17,084 (7%) (3%) Wholesale vehicles 2,593 2,994 2,621 2,740 3,235 (13%) (20%) Gross profit per unit ("GPU"): Total used vehicle and F&I 3,078$ 2,955$ 2,461$ 2,767$ 1,569$ 4% 96%
NYSE SAH Non-GAAP Reconciliation – Quarterly Trend – EchoPark Segment 26 NM = Not MeaningfulNote: SG&A expenses as a percentage of gross profit metrics are calculated based on actual unrounded amounts. Q2 2024 Better / (Worse) % Change (In millions) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Sequential Year-Over-Year Reported income (loss) before taxes 2.5$ (2.9)$ (31.6)$ (16.9)$ (115.4)$ 185% 102% Impairment charges 1.4 - 15.7 - 62.6 NM NM Segment income (loss) 3.9$ (2.9)$ (15.9)$ (16.9)$ (52.8)$ 232% 107% Acquisition and disposition-related (gain) loss (0.6) - - - 0.2 NM NM Loss (gain) on exit of leased dealerships (3.0) - - 3.9 0.4 NM NM Severance and long-term compensation charges 0.7 2.1 - 0.9 2.2 NM NM Used vehicle inventory valuation adjustment - - - - 10.0 NM NM Closed store accrued expenses - 2.1 - - - NM NM Excess compensation related to CDK outage 0.4 - - - - NM NM Adjusted segment income (loss) 1.4$ 1.3$ (15.9)$ (12.1)$ (40.0)$ 11% 104% Reported gross profit 51.1$ 52.6$ 42.8$ 52.8$ 26.8$ (3%) 91% Used vehicle inventory valuation adjustment - - - - 10.0 NM NM Adjusted gross profit 51.1$ 52.6$ 42.8$ 52.8$ 36.8$ (3%) 39% Reported SG&A expenses (37.2)$ (45.6)$ (48.0)$ (58.6)$ (66.6)$ 18% 44% Acquisition and disposition-related (gain) loss (0.6) - - - 0.2 NM NM Loss (gain) on exit of leased dealerships (3.0) - - 3.9 0.4 NM NM Severance and long-term compensation charges 0.7 2.1 - 0.9 2.2 NM NM Closed store accrued expenses - 2.1 - - - NM NM Excess compensation related to CDK outage 0.4 - - - - NM NM Adjusted SG&A expenses (39.7)$ (41.4)$ (48.0)$ (53.8)$ (63.8)$ 4% 38% Adjusted SG&A expenses as a percentage of gross profit 77.7% 78.6% 112.3% 101.9% 173.5% 90 bps 9,580 bps Income (loss) before taxes 2.5$ (2.9)$ (31.6)$ (16.9)$ (115.4)$ 185% 102% Non-floor plan interest 0.7 0.6 0.7 0.7 0.8 NM NM Depreciation and amortization 5.4 5.4 6.1 6.1 7.6 NM NM Loss (gain) on exit of leased dealerships (3.0) - - 3.9 0.4 NM NM Impairment charges 1.4 - 15.7 - 62.6 NM NM Severance and long-term compensation charges 0.8 2.1 - 0.9 2.2 Excess compensation related to CDK outage 0.4 - - - - NM NM Acquisition and disposition-related (gain) loss (1.0) - - 0.1 - NM NM Closed store accrued expenses - 2.1 - - - NM NM Used vehicle inventory valuation adjustment - - - - 10.0 NM NM Adjusted EBITDA 7.2$ 7.3$ (9.1)$ (5.2)$ (31.8)$ (1%) 123% Adjusted EBITDA - Closed Stores (1.8)$ (2.0)$ (2.8)$ (2.5)$ (13.4)$ 10% 87% Adjusted EBITDA - EchoPark Operations (with Holding Company) 9.0 9.3 (6.3) (2.7) (18.4) (3%) 149% Adjusted EBITDA - Total EchoPark Segment 7.2$ 7.3$ (9.1)$ (5.2)$ (31.8)$ (1%) 123%
NYSE SAH GAAP Income Statement – Quarterly Trend – Powersports Segment 27 NM = Not MeaningfulNote: Gross profit per unit metrics are calculated based on actual unrounded amounts. Q2 2024 Better / (Worse) % Change (In millions, except unit and per unit data) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Sequential Year-Over-Year Revenues: Retail new vehicles 21.7$ 15.9$ 16.1$ 26.8$ 24.9$ 37% (13%) Used vehicles 5.3 3.4 2.4 4.9 7.4 57% (28%) Wholesale vehicles 0.9 0.1 0.7 1.3 0.4 NM NM Total vehicles 27.9 19.4 19.2 33.0 32.7 43% (15%) Parts, service and collision repair 9.7 6.8 6.7 21.6 10.3 44% (6%) Finance, insurance and other, net ("F&I") 2.0 1.5 1.3 2.4 2.0 33% 0% Total revenues 39.6 27.7 27.2 57.0 45.0 43% (12%) Gross profit: Retail new vehicles 2.9 2.3 2.3 5.9 4.5 28% (36%) Used vehicles 1.3 0.9 0.7 2.4 1.3 45% 0% Wholesale vehicles (0.1) - (0.1) (0.1) - NM NM Total vehicles 4.1 3.2 2.9 8.2 5.8 31% (29%) Parts, service and collision repair 4.6 3.1 2.8 10.2 5.0 47% (8%) Finance, insurance and other, net 2.0 1.5 1.3 2.4 2.0 33% 0% Total gross profit 10.7 7.8 7.0 20.8 12.8 38% (16%) SG&A expenses (7.9) (8.1) (9.2) (12.7) (9.2) 3% 14% Impairment charges - - - - - NM NM Depreciation and amortization (1.0) (1.0) (1.0) (0.9) (0.8) (5%) (25%) Operating income (loss) 1.8 (1.3) (3.2) 7.2 2.8 236% (36%) Interest expense, floor plan (0.5) (0.5) - (0.2) (0.3) (6%) (67%) Interest expense, other, net (0.8) (0.5) (0.2) (0.4) (0.5) (69%) (60%) Other income (expense), net - - (0.1) - - NM NM Income (loss) before taxes 0.5$ (2.3)$ (3.5)$ 6.6$ 2.0$ 122% (75%) Unit sales volume: Retail new vehicles 1,193 845 948 1,391 1,396 41% (15%) Used vehicles 522 409 289 837 691 28% (24%) Wholesale vehicles 18 13 66 93 50 NM NM Gross profit per unit ("GPU"): Retail new vehicles 2,466$ 2,676$ 2,429$ 4,213$ 3,235$ (8%) (24%) Used vehicles 2,423$ 2,185$ 2,307$ 2,833$ 1,942$ 11% 25% F&I 1,153$ 1,197$ 1,066$ 1,075$ 952$ (4%) 21%
NYSE SAH Non-GAAP Reconciliation – Quarterly Trend – Powersports Segment 28 NM = Not MeaningfulNote: SG&A expenses as a percentage of gross profit metrics are calculated based on actual unrounded amounts. Q2 2024 Better / (Worse) % Change (In millions) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Sequential Year-Over-Year Reported income (loss) before taxes 0.5$ (2.3)$ (3.5)$ 6.6$ 2.0$ 122% (75%) Impairment charges - - - - - NM NM Segment income (loss) 0.5$ (2.3)$ (3.5)$ 6.6$ 2.0$ 122% (75%) Reported SG&A expenses (7.9)$ (8.1)$ (9.2)$ (12.7)$ (9.2)$ 3% 14% Reported SG&A expenses as a percentage of gross profit 73.7% 104.8% 131.6% 61.1% 71.6% 3,110 bps (210) bps Income (loss) before taxes 0.5$ (2.3)$ (3.5)$ 6.6$ 2.0$ 122% (75%) Non-floor plan interest 0.8 0.5 0.1 0.4 0.6 NM NM Depreciation and amortization 1.0 1.0 1.0 0.9 0.8 NM NM Adjusted EBITDA 2.3$ (0.8)$ (2.4)$ 7.9$ 3.4$ (388%) (32%)
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