SAH 8-K
Sonic Automotive Inc (SAH)
8-K
2024-04-25
For: 2024-04-25
View Original
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): April 25, 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 April 25, 2024, Sonic Automotive, Inc. (the “Company”) issued a press release announcing its financial results for its fiscal first quarter ended March 31, 2024 (the “Earnings Press Release”). A copy of the Earnings Press Release is attached hereto as Exhibit 99.1 and a copy of the earnings call presentation materials is attached hereto as Exhibit 99.2.
Item 7.01. Regulation FD Disclosure.
On April 25, 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. | ||||||||
| April 25, 2024 | By: | /s/ STEPHEN K. COSS | ||||||
| Stephen K. Coss | ||||||||
| Senior Vice President and General Counsel | ||||||||
Exhibit 99.1
Sonic Automotive Reports First Quarter Financial Results
EchoPark Segment Achieved All-Time Record Quarterly Adjusted EBITDA* in the First Quarter of 2024, Exceeding Previously Stated Target of Breakeven Adjusted EBITDA* in the First Quarter
CHARLOTTE, N.C. – April 25, 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 first quarter ended March 31, 2024.
First Quarter 2024 Financial Summary
•Total revenues of $3.4 billion, down 3% year-over-year; total gross profit of $536.2 million, down 3% year-over-year
•Reported net income of $42.0 million, down 12% year-over-year ($1.20 earnings per diluted share, down 7% year-over-year)
▪Reported net income includes the effects of a $2.2 million pre-tax charge related to accelerated equity compensation vesting and a $1.0 million pre-tax impairment charge in the Franchised Dealerships Segment; a $4.2 million pre-tax charge related to the previously announced closure of the remaining Northwest Motorsport stores in the EchoPark Segment; offset partially by a $1.9 million tax benefit on the above charges
▪Excluding these items, adjusted net income* was $47.5 million, down 3% year-over-year ($1.36 adjusted earnings per diluted share*, up 2% year-over-year)
•Total reported selling, general and administrative (“SG&A”) expenses as a percentage of gross profit of 73.1% (71.1% on a Franchised Dealerships Segment basis, 86.6% on an EchoPark Segment basis, and 104.8% on a Powersports Segment basis)
▪Total adjusted SG&A expenses as a percentage of gross profit* of 72.0% (70.7% on a Franchised Dealerships Segment basis, 78.6% on an EchoPark Segment basis, and 104.8% on a Powersports Segment basis)
•EchoPark Segment revenues of $559.4 million, down 14% year-over-year; record first quarter EchoPark Segment total gross profit of $52.6 million, up 34% year-over-year; EchoPark Segment retail used vehicle unit sales volume of 17,981, down 10% year-over-year
•Reported EchoPark Segment loss of $2.9 million and adjusted EchoPark Segment income* of $1.3 million
•All-time record quarterly EchoPark Segment adjusted EBITDA* of $7.3 million, up 120% year-over-year
•Exceeded previously issued target for an expected return to breakeven EchoPark Segment adjusted EBITDA* in the first quarter of 2024
•Excluding closed stores, EchoPark Segment adjusted EBITDA* was $9.4 million, a 142% improvement year-over-year
•During the first quarter, Sonic repurchased approximately 0.5 million shares of its Class A Common Stock for an aggregate purchase price of approximately $27.0 million
* 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, “We are proud of our team’s performance in the first quarter, with our diversified business model and commitment to returning capital to stockholders driving year-over-year growth in adjusted earnings per share* despite the continued normalization of new vehicle margins in our franchised dealerships segment. During the quarter, our EchoPark Segment results exceeded our previously communicated target for breakeven adjusted EBITDA*, and we are excited to report all-time record quarterly EchoPark Segment adjusted EBITDA* for the first quarter. We remain confident that we have the right strategy, the right people, and the right culture to continue to grow our diversified business and create long-term value for our stakeholders.”
Jeff Dyke, President of Sonic Automotive, commented, “Our EchoPark results in the first quarter demonstrate our team's valuable industry experience and the adaptability of our innovative EchoPark model, and validate the difficult decisions we made to right-size our EchoPark footprint over the last several quarters. Based on recent trends and our outlook for gradual improvement in the used vehicle market going forward, we remain confident in our ability to maintain positive quarterly EchoPark Segment adjusted EBITDA* for the remainder of 2024, driving significant year-over-year improvement in the EchoPark Segment to help mitigate the continuing effects of margin normalization in our Franchised Dealerships Segment.”
Heath Byrd, Chief Financial Officer of Sonic Automotive, added, “Our diversified cash flow streams continued to benefit our overall financial position in the first quarter. As of March 31, 2024, we had $847 million of total liquidity, including $335 million in cash and floor plan deposits on hand. We believe we remain well-positioned to adapt to evolving market conditions and position the Company for success in 2024 and beyond.”
First Quarter 2024 Segment Highlights
The financial measures discussed below are results for the first quarter of 2024 with comparisons made to the first quarter of 2023, unless otherwise noted.
•Franchised Dealerships Segment operating results include:
•Same store revenues up 1%; same store gross profit down 5%
•Same store retail new vehicle unit sales volume up 5%; same store retail new vehicle gross profit per unit down 32%, to $3,716
•Same store retail used vehicle unit sales volume up 4%; same store retail used vehicle gross profit per unit down 3%, to $1,585
•Same store parts, service and collision repair (“Fixed Operations”) gross profit up 6%; same store customer pay gross profit up 6%; same store warranty gross profit up 13%; same store Fixed Operations gross profit margin up 70 basis points, to 50.1%
•Same store finance and insurance ("F&I") gross profit up 3%; same store F&I gross profit per retail unit of $2,350, down 1%
•On a trailing quarter cost of sales basis, the Franchised Dealerships Segment had 50 days’ supply of new vehicle inventory (including in-transit) and 28 days’ supply of used vehicle inventory
•EchoPark Segment operating results include:
•Revenues of $559.4 million, down 14%; gross profit of $52.6 million, up 34%
◦On a same market basis (which excludes closed stores), revenues were up 11% and gross profit was up 79%
•Retail used vehicle unit sales volume of 17,981, down 10%
◦On a same market basis (which excludes closed stores), retail used vehicle unit sales volume was up 13%
•Reported segment loss of $2.9 million, adjusted segment income* of $1.3 million, and adjusted EBITDA* of $7.3 million
•Reported segment loss includes $5.9 million loss related to closed stores (closed stores represent a $2.2 million loss on an adjusted segment loss* basis and a $2.1 million loss on an adjusted EBITDA* basis)
•Excluding closed stores, reported segment income was $1.3 million, adjusted segment income* was $3.5 million, and adjusted EBITDA* was $9.4 million
•On a trailing quarter cost of sales basis, the EchoPark Segment had 36 days’ supply of used vehicle inventory
•Powersports Segment operating results include:
•Revenues of $27.7 million, down 19%; gross profit of $7.8 million, down 20%
•Segment loss of $2.3 million and adjusted EBITDA* loss of $0.8 million
•First quarter Powersports Segment adjusted EBITDA* loss reflects the seasonality of this business and was in line with our previously communicated expectation for near breakeven adjusted EBITDA*
* 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 July 15, 2024 to all stockholders of record on June 14, 2024.
First Quarter 2024 Earnings Conference Call
Senior management will hold a conference call today at 11:00 A.M. (Eastern). Investor presentation and earnings press release materials will be accessible beginning prior to the conference call on the Company’s website at ir.sonicautomotive.com.
To access the live webcast of the conference call, please go to ir.sonicautomotive.com and select the webcast link at the top of the page. For telephone access to this conference call, please dial (877) 407-8289 (domestic) or +1 (201) 689-8341 (international) and ask to be connected to the Sonic Automotive First Quarter 2024 Earnings Conference Call. Dial-in access remains available throughout the live call; however, to ensure you are connected for the full call we suggest dialing in at least 10 minutes before the start of the call. A webcast replay will be available following the call for 14 days at ir.sonicautomotive.com.
About Sonic Automotive
Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, North Carolina, is on a quest to become the most valuable diversified automotive retail and service brand in America. Our Company culture thrives on creating, innovating, and providing industry-leading guest experiences, driven by strategic investments in technology, teammates, and ideas that ultimately fulfill ownership dreams, enrich lives, and deliver happiness to our guests and teammates. As one of the largest automotive and powersports retailers in America, we are committed to delivering on this goal while pursuing expansive growth and taking progressive measures to be the leader in these categories. Our new platforms, programs, and people are set to drive the next generation of automotive and powersports experiences. More information about Sonic Automotive can be found at www.sonicautomotive.com and ir.sonicautomotive.com.
About EchoPark Automotive
EchoPark Automotive is one of the most comprehensive retailers of nearly new pre-owned vehicles in America today. Our unique business model offers a best-in-class shopping and utilizes one of the most innovative technology-enabled sales strategies in our industry. Our approach provides a personalized and proven guest-centric buying process that consistently delivers award-winning guest experiences and superior value to car buyers nationwide, with savings of up to $3,000 versus the competition. Consumers have responded by putting EchoPark among the top national pre-owned vehicle retailers in products, sales, and service, while receiving the 2023 Consumer Satisfaction Award from DealerRater. EchoPark’s mission is in the name: Every Car, Happy Owner. This drives the experience for guests and differentiates EchoPark from the competition. More information about EchoPark Automotive can be found at www.echopark.com.
Forward-Looking Statements
Included herein are forward-looking statements, including statements regarding anticipated future EchoPark profitability and anticipated future EchoPark adjusted EBITDA. There are many factors that affect management’s views about future events and trends of the Company’s business. These factors involve risks and uncertainties that could cause actual results or trends to differ materially from management’s views, including, without limitation, 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.
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 March 31, | Better / (Worse) | ||||||||||||||||
| 2024 | 2023 | % Change | |||||||||||||||
| (In millions, except per share amounts) | |||||||||||||||||
| Revenues: | |||||||||||||||||
| Retail new vehicles | $ | 1,455.8 | $ | 1,442.8 | 1 | % | |||||||||||
| Fleet new vehicles | 19.6 | 18.8 | 4 | % | |||||||||||||
| Total new vehicles | 1,475.4 | 1,461.6 | 1 | % | |||||||||||||
| Used vehicles | 1,215.6 | 1,344.9 | (10) | % | |||||||||||||
| Wholesale vehicles | 77.3 | 85.6 | (10) | % | |||||||||||||
| Total vehicles | 2,768.3 | 2,892.1 | (4) | % | |||||||||||||
| Parts, service and collision repair | 446.7 | 430.5 | 4 | % | |||||||||||||
| Finance, insurance and other, net | 169.0 | 168.6 | — | % | |||||||||||||
| Total revenues | 3,384.0 | 3,491.2 | (3) | % | |||||||||||||
| Cost of sales: | |||||||||||||||||
| Retail new vehicles | (1,359.4) | (1,304.7) | (4) | % | |||||||||||||
| Fleet new vehicles | (18.9) | (17.9) | (6) | % | |||||||||||||
| Total new vehicles | (1,378.3) | (1,322.6) | (4) | % | |||||||||||||
| Used vehicles | (1,168.6) | (1,314.9) | 11 | % | |||||||||||||
| Wholesale vehicles | (78.1) | (82.6) | 5 | % | |||||||||||||
| Total vehicles | (2,625.0) | (2,720.1) | 3 | % | |||||||||||||
| Parts, service and collision repair | (222.8) | (217.6) | (2) | % | |||||||||||||
| Total cost of sales | (2,847.8) | (2,937.7) | 3 | % | |||||||||||||
| Gross profit | 536.2 | 553.5 | (3) | % | |||||||||||||
| Selling, general and administrative expenses | (392.2) | (412.8) | 5 | % | |||||||||||||
| Impairment charges | (1.0) | — | (100) | % | |||||||||||||
| Depreciation and amortization | (36.3) | (34.3) | (6) | % | |||||||||||||
| Operating income (loss) | 106.7 | 106.4 | — | % | |||||||||||||
| Other income (expense): | |||||||||||||||||
| Interest expense, floor plan | (20.3) | (14.6) | (39) | % | |||||||||||||
| Interest expense, other, net | (29.0) | (28.4) | (2) | % | |||||||||||||
| Other income (expense), net | 0.1 | 0.2 | (50) | % | |||||||||||||
| Total other income (expense) | (49.2) | (42.8) | (15) | % | |||||||||||||
| Income (loss) before taxes | 57.5 | 63.6 | (10) | % | |||||||||||||
| Provision for income taxes - benefit (expense) | (15.5) | (15.9) | 3 | % | |||||||||||||
| Net income (loss) | $ | 42.0 | $ | 47.7 | (12) | % | |||||||||||
| Basic earnings (loss) per common share | $ | 1.24 | $ | 1.33 | (7) | % | |||||||||||
| Basic weighted-average common shares outstanding | 34.0 | 35.9 | 5 | % | |||||||||||||
| Diluted earnings (loss) per common share | $ | 1.20 | $ | 1.29 | (7) | % | |||||||||||
| Diluted weighted-average common shares outstanding | 34.9 | 36.9 | 5 | % | |||||||||||||
| Dividends declared per common share | $ | 0.30 | $ | 0.28 | 7 | % | |||||||||||
Franchised Dealerships Segment - Reported
| Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||
| 2024 | 2023 | % Change | |||||||||||||||
| (In millions, except unit and per unit data) | |||||||||||||||||
| Revenues: | |||||||||||||||||
| Retail new vehicles | $ | 1,439.9 | $ | 1,421.0 | 1 | % | |||||||||||
| Fleet new vehicles | 19.6 | 18.8 | 4 | % | |||||||||||||
| Total new vehicles | 1,459.5 | 1,439.8 | 1 | % | |||||||||||||
| Used vehicles | 729.3 | 767.6 | (5) | % | |||||||||||||
| Wholesale vehicles | 48.6 | 58.4 | (17) | % | |||||||||||||
| Total vehicles | 2,237.4 | 2,265.8 | (1) | % | |||||||||||||
| Parts, service and collision repair | 439.9 | 423.8 | 4 | % | |||||||||||||
| Finance, insurance and other, net | 119.6 | 117.1 | 2 | % | |||||||||||||
| Total revenues | 2,796.9 | 2,806.7 | — | % | |||||||||||||
| Gross Profit: | |||||||||||||||||
| Retail new vehicles | 94.1 | 134.0 | (30) | % | |||||||||||||
| Fleet new vehicles | 0.7 | 0.9 | (22) | % | |||||||||||||
| Total new vehicles | 94.8 | 134.9 | (30) | % | |||||||||||||
| Used vehicles | 40.8 | 40.8 | — | % | |||||||||||||
| Wholesale vehicles | (0.2) | 1.9 | (111) | % | |||||||||||||
| Total vehicles | 135.4 | 177.6 | (24) | % | |||||||||||||
| Parts, service and collision repair | 220.8 | 209.6 | 5 | % | |||||||||||||
| Finance, insurance and other, net | 119.6 | 117.1 | 2 | % | |||||||||||||
| Total gross profit | 475.8 | 504.3 | (6) | % | |||||||||||||
| Selling, general and administrative expenses | (338.5) | (331.2) | (2) | % | |||||||||||||
| Impairment charges | (1.0) | — | (100) | % | |||||||||||||
| Depreciation and amortization | (29.8) | (26.5) | (12) | % | |||||||||||||
| Operating income (loss) | 106.5 | 146.6 | (27) | % | |||||||||||||
| Other income (expense): | |||||||||||||||||
| Interest expense, floor plan | (16.0) | (9.9) | (62) | % | |||||||||||||
| Interest expense, other, net | (27.8) | (26.9) | (3) | % | |||||||||||||
| Other income (expense), net | — | — | — | % | |||||||||||||
| Total other income (expense) | (43.8) | (36.8) | (19) | % | |||||||||||||
| Income (loss) before taxes | 62.7 | 109.8 | (43) | % | |||||||||||||
| Add: Impairment charges | 1.0 | — | 100 | % | |||||||||||||
| Segment income (loss) | $ | 63.7 | $ | 109.8 | (42) | % | |||||||||||
| Unit Sales Volume: | |||||||||||||||||
| Retail new vehicles | 25,297 | 24,539 | 3 | % | |||||||||||||
| Fleet new vehicles | 379 | 441 | (14) | % | |||||||||||||
| Total new vehicles | 25,676 | 24,980 | 3 | % | |||||||||||||
| Used vehicles | 25,666 | 25,107 | 2 | % | |||||||||||||
| Wholesale vehicles | 5,105 | 5,483 | (7) | % | |||||||||||||
| Retail new & used vehicles | 50,963 | 49,646 | 3 | % | |||||||||||||
| Used-to-New Ratio | 1.01 | 1.02 | (1) | % | |||||||||||||
| Gross Profit Per Unit: | |||||||||||||||||
| Retail new vehicles | $ | 3,722 | $ | 5,463 | (32) | % | |||||||||||
| Fleet new vehicles | $ | 1,706 | $ | 2,020 | (16) | % | |||||||||||
| New vehicles | $ | 3,692 | $ | 5,402 | (32) | % | |||||||||||
| Used vehicles | $ | 1,592 | $ | 1,626 | (2) | % | |||||||||||
| Finance, insurance and other, net | $ | 2,348 | $ | 2,360 | (1) | % | |||||||||||
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 March 31, | Better / (Worse) | ||||||||||||||||
| 2024 | 2023 | % Change | |||||||||||||||
| (In millions, except unit and per unit data) | |||||||||||||||||
| Revenues: | |||||||||||||||||
| Retail new vehicles | $ | 1,435.5 | $ | 1,398.8 | 3 | % | |||||||||||
| Fleet new vehicles | 19.6 | 18.9 | 4 | % | |||||||||||||
| Total new vehicles | 1,455.1 | 1,417.7 | 3 | % | |||||||||||||
| Used vehicles | 726.0 | 753.9 | (4) | % | |||||||||||||
| Wholesale vehicles | 48.4 | 57.6 | (16) | % | |||||||||||||
| Total vehicles | 2,229.5 | 2,229.2 | — | % | |||||||||||||
| Parts, service and collision repair | 438.6 | 417.8 | 5 | % | |||||||||||||
| Finance, insurance and other, net | 119.3 | 115.3 | 3 | % | |||||||||||||
| Total revenues | 2,787.4 | 2,762.3 | 1 | % | |||||||||||||
| Gross Profit: | |||||||||||||||||
| Retail new vehicles | 93.7 | 132.3 | (29) | % | |||||||||||||
| Fleet new vehicles | 0.7 | 0.9 | (22) | % | |||||||||||||
| Total new vehicles | 94.4 | 133.2 | (29) | % | |||||||||||||
| Used vehicles | 40.5 | 40.1 | 1 | % | |||||||||||||
| Wholesale vehicles | (0.2) | 1.8 | (111) | % | |||||||||||||
| Total vehicles | 134.7 | 175.1 | (23) | % | |||||||||||||
| Parts, service and collision repair | 219.6 | 206.3 | 6 | % | |||||||||||||
| Finance, insurance and other, net | 119.3 | 115.3 | 3 | % | |||||||||||||
| Total gross profit | $ | 473.6 | $ | 496.7 | (5) | % | |||||||||||
| Unit Sales Volume: | |||||||||||||||||
| Retail new vehicles | 25,225 | 24,053 | 5 | % | |||||||||||||
| Fleet new vehicles | 379 | 441 | (14) | % | |||||||||||||
| Total new vehicles | 25,604 | 24,494 | 5 | % | |||||||||||||
| Used vehicles | 25,552 | 24,601 | 4 | % | |||||||||||||
| Wholesale vehicles | 5,094 | 5,389 | (5) | % | |||||||||||||
| Retail new & used vehicles | 50,777 | 48,654 | 4 | % | |||||||||||||
| Used-to-New Ratio | 1.01 | 1.02 | (1) | % | |||||||||||||
| Gross Profit Per Unit: | |||||||||||||||||
| Retail new vehicles | $ | 3,716 | $ | 5,499 | (32) | % | |||||||||||
| Fleet new vehicles | $ | 1,706 | $ | 2,020 | (16) | % | |||||||||||
| New vehicles | $ | 3,686 | $ | 5,437 | (32) | % | |||||||||||
| Used vehicles | $ | 1,585 | $ | 1,631 | (3) | % | |||||||||||
| Finance, insurance and other, net | $ | 2,350 | $ | 2,370 | (1) | % | |||||||||||
Note: All currently operating franchised dealership stores are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition.
EchoPark Segment - Reported
| Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||
| 2024 | 2023 | % Change | |||||||||||||||
| (In millions, except unit and per unit data) | |||||||||||||||||
| Revenues: | |||||||||||||||||
| Retail new vehicles | $ | — | $ | 1.0 | (100) | % | |||||||||||
| Used vehicles | 482.9 | 572.5 | (16) | % | |||||||||||||
| Wholesale vehicles | 28.6 | 27.0 | 6 | % | |||||||||||||
| Total vehicles | 511.5 | 600.5 | (15) | % | |||||||||||||
| Finance, insurance and other, net | 47.9 | 50.0 | (4) | % | |||||||||||||
| Total revenues | 559.4 | 650.5 | (14) | % | |||||||||||||
| Gross Profit: | |||||||||||||||||
| Retail new vehicles | — | 0.1 | (100) | % | |||||||||||||
| Used vehicles | 5.3 | (11.8) | 145 | % | |||||||||||||
| Wholesale vehicles | (0.6) | 1.1 | (155) | % | |||||||||||||
| Total vehicles | 4.7 | (10.6) | 144 | % | |||||||||||||
| Finance, insurance and other, net | 47.9 | 50.0 | (4) | % | |||||||||||||
| Total gross profit | 52.6 | 39.4 | 34 | % | |||||||||||||
| Selling, general and administrative expenses | (45.6) | (73.8) | 38 | % | |||||||||||||
| Impairment charges | — | — | — | % | |||||||||||||
| Depreciation and amortization | (5.5) | (7.0) | 21 | % | |||||||||||||
| Operating income (loss) | 1.5 | (41.4) | 104 | % | |||||||||||||
| Other income (expense): | |||||||||||||||||
| Interest expense, floor plan | (3.8) | (4.6) | 17 | % | |||||||||||||
| Interest expense, other, net | (0.7) | (0.9) | 22 | % | |||||||||||||
| Other income (expense), net | 0.1 | 0.1 | — | % | |||||||||||||
| Total other income (expense) | (4.4) | (5.4) | 19 | % | |||||||||||||
| Income (loss) before taxes | (2.9) | (46.8) | 94 | % | |||||||||||||
| Add: Impairment charges | — | — | — | % | |||||||||||||
| Segment income (loss) | $ | (2.9) | $ | (46.8) | 94 | % | |||||||||||
| Unit Sales Volume: | |||||||||||||||||
| Retail new vehicles | — | 11 | (100) | % | |||||||||||||
| Used vehicles | 17,981 | 19,980 | (10) | % | |||||||||||||
| Wholesale vehicles | 2,994 | 2,916 | 3 | % | |||||||||||||
| Gross Profit Per Unit: | |||||||||||||||||
| Total used vehicle and F&I | $ | 2,955 | $ | 1,906 | 55 | % | |||||||||||
EchoPark Segment - Same Market
| Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||
| 2024 | 2023 | % Change | |||||||||||||||
| (In millions, except unit and per unit data) | |||||||||||||||||
| Revenues: | |||||||||||||||||
| Used vehicles | $ | 473.2 | $ | 433.7 | 9 | % | |||||||||||
| Wholesale vehicles | 25.5 | 17.9 | 42 | % | |||||||||||||
| Total vehicles | 498.7 | 451.6 | 10 | % | |||||||||||||
| Finance, insurance and other, net | 47.5 | 38.3 | 24 | % | |||||||||||||
| Total revenues | 546.2 | 489.9 | 11 | % | |||||||||||||
| Gross Profit: | |||||||||||||||||
| Used vehicles | 5.6 | (9.8) | 157 | % | |||||||||||||
| Wholesale vehicles | 0.1 | 1.2 | (92) | % | |||||||||||||
| Total vehicles | 5.7 | (8.6) | 166 | % | |||||||||||||
| Finance, insurance and other, net | 47.5 | 38.3 | 24 | % | |||||||||||||
| Total gross profit | $ | 53.2 | $ | 29.7 | 79 | % | |||||||||||
| Unit Sales Volume: | |||||||||||||||||
| Used vehicles | 17,618 | 15,551 | 13 | % | |||||||||||||
| Wholesale vehicles | 2,785 | 2,119 | 31 | % | |||||||||||||
| Gross Profit Per Unit: | |||||||||||||||||
| Total used vehicle and F&I | $ | 3,018 | $ | 1,833 | 65 | % | |||||||||||
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 March 31, | Better / (Worse) | ||||||||||||||||
| 2024 | 2023 | % Change | |||||||||||||||
| (In millions, except unit and per unit data) | |||||||||||||||||
| Revenues: | |||||||||||||||||
| Retail new vehicles | $ | 15.9 | $ | 20.8 | (24) | % | |||||||||||
| Used vehicles | 3.4 | 4.8 | (29) | % | |||||||||||||
| Wholesale vehicles | 0.1 | 0.2 | (50) | % | |||||||||||||
| Total vehicles | 19.4 | 25.8 | (25) | % | |||||||||||||
| Parts, service and collision repair | 6.8 | 6.7 | 1 | % | |||||||||||||
| Finance, insurance and other, net | 1.5 | 1.5 | — | % | |||||||||||||
| Total revenues | 27.7 | 34.0 | (19) | % | |||||||||||||
| Gross Profit: | |||||||||||||||||
| Retail new vehicles | 2.3 | 4.0 | (43) | % | |||||||||||||
| Used vehicles | 0.9 | 1.0 | (10) | % | |||||||||||||
| Wholesale vehicles | — | — | — | % | |||||||||||||
| Total vehicles | 3.2 | 5.0 | (36) | % | |||||||||||||
| Parts, service and collision repair | 3.1 | 3.3 | (6) | % | |||||||||||||
| Finance, insurance and other, net | 1.5 | 1.5 | — | % | |||||||||||||
| Total gross profit | 7.8 | 9.8 | (20) | % | |||||||||||||
| Selling, general and administrative expenses | (8.1) | (7.8) | (4) | % | |||||||||||||
| Depreciation and amortization | (1.0) | (0.8) | (25) | % | |||||||||||||
| Operating income (loss) | (1.3) | 1.2 | (208) | % | |||||||||||||
| Other income (expense): | |||||||||||||||||
| Interest expense, floor plan | (0.5) | (0.1) | (400) | % | |||||||||||||
| Interest expense, other, net | (0.5) | (0.6) | 17 | % | |||||||||||||
| Other income (expense), net | — | 0.1 | (100) | % | |||||||||||||
| Total other income (expense) | (1.0) | (0.6) | (67) | % | |||||||||||||
| Income (loss) before taxes | (2.3) | 0.6 | (483) | % | |||||||||||||
| Add: Impairment charges | — | — | — | % | |||||||||||||
| Segment income (loss) | $ | (2.3) | $ | 0.6 | (483) | % | |||||||||||
| Unit Sales Volume: | |||||||||||||||||
| Retail new vehicles | 845 | 1,107 | (24) | % | |||||||||||||
| Used vehicles | 409 | 444 | (8) | % | |||||||||||||
| Wholesale vehicles | 13 | 7 | 86 | % | |||||||||||||
| Gross Profit Per Unit: | |||||||||||||||||
| Retail new vehicles | $ | 2,676 | $ | 3,573 | (25) | % | |||||||||||
| Used vehicles | $ | 2,185 | $ | 2,328 | (6) | % | |||||||||||
| Finance, insurance and other, net | $ | 1,197 | $ | 980 | 22 | % | |||||||||||
Powersports Segment - Same Store
| Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||
| 2024 | 2023 | % Change | |||||||||||||||
| (In millions, except unit and per unit data) | |||||||||||||||||
| Revenues: | |||||||||||||||||
| Retail new vehicles | $ | 15.3 | $ | 20.6 | (26) | % | |||||||||||
| Used vehicles | 2.7 | 4.3 | (37) | % | |||||||||||||
| Wholesale vehicles | 0.3 | 0.1 | 200 | % | |||||||||||||
| Total vehicles | 18.3 | 25.0 | (27) | % | |||||||||||||
| Parts, service and collision repair | 6.1 | 6.4 | (5) | % | |||||||||||||
| Finance, insurance and other, net | 1.4 | 1.5 | (7) | % | |||||||||||||
| Total revenues | 25.8 | 32.9 | (22) | % | |||||||||||||
| Gross Profit: | |||||||||||||||||
| Retail new vehicles | 2.1 | 3.9 | (46) | % | |||||||||||||
| Used vehicles | 0.7 | 0.9 | (22) | % | |||||||||||||
| Wholesale vehicles | 0.1 | (0.1) | 200 | % | |||||||||||||
| Total vehicles | 2.9 | 4.7 | (38) | % | |||||||||||||
| Parts, service and collision repair | 2.8 | 3.2 | (13) | % | |||||||||||||
| Finance, insurance and other, net | 1.4 | 1.5 | (7) | % | |||||||||||||
| Total gross profit | $ | 7.1 | $ | 9.4 | (24) | % | |||||||||||
| Unit Sales Volume: | |||||||||||||||||
| Retail new vehicles | 828 | 1,100 | (25) | % | |||||||||||||
| Used vehicles | 336 | 401 | (16) | % | |||||||||||||
| Wholesale vehicles | 10 | 6 | 67 | % | |||||||||||||
| Retail new & used vehicles | 1,164 | 1,501 | (22) | % | |||||||||||||
| Used-to-New Ratio | 0.41 | 0.36 | 14 | % | |||||||||||||
| Gross Profit Per Unit: | |||||||||||||||||
| Retail new vehicles | $ | 2,553 | $ | 3,549 | (28) | % | |||||||||||
| Used vehicles | $ | 2,202 | $ | 2,274 | (3) | % | |||||||||||
| Finance, insurance and other, net | $ | 1,225 | $ | 981 | 25 | % | |||||||||||
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 March 31, | Better / (Worse) | ||||||||||||||||||||||
| 2024 | 2023 | Change | % Change | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Compensation | $ | 247.3 | $ | 258.8 | $ | 11.5 | 4 | % | |||||||||||||||
| Advertising | 22.3 | 26.1 | 3.8 | 15 | % | ||||||||||||||||||
| Rent | 9.3 | 11.3 | 2.0 | 18 | % | ||||||||||||||||||
| Other | 113.3 | 116.6 | 3.3 | 3 | % | ||||||||||||||||||
| Total SG&A expenses | $ | 392.2 | $ | 412.8 | $ | 20.6 | 5 | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Closed store accrued expenses | $ | (2.1) | $ | — | |||||||||||||||||||
| Severance and long-term compensation charges | (4.3) | (2.0) | |||||||||||||||||||||
| Total SG&A adjustments | $ | (6.4) | $ | (2.0) | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses | $ | 385.8 | $ | 410.8 | $ | 25.0 | 6 | % | |||||||||||||||
| Reported: | |||||||||||||||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||||||||||||||
| Compensation | 46.1 | % | 46.7 | % | 60 | bps | |||||||||||||||||
| Advertising | 4.2 | % | 4.7 | % | 50 | bps | |||||||||||||||||
| Rent | 1.7 | % | 2.0 | % | 30 | bps | |||||||||||||||||
| Other | 21.1 | % | 21.2 | % | 10 | bps | |||||||||||||||||
| Total SG&A expenses as a % of gross profit | 73.1 | % | 74.6 | % | 150 | bps | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Closed store accrued expenses | (0.4) | % | — | % | |||||||||||||||||||
| Severance and long-term compensation charges | (0.7) | % | (0.4) | % | |||||||||||||||||||
| Total effect of adjustments | (1.1) | % | (0.4) | % | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses as a % of gross profit | 72.0 | % | 74.2 | % | 220 | bps | |||||||||||||||||
Non-GAAP Reconciliation - Franchised Dealerships Segment - SG&A Expenses
| Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
| 2024 | 2023 | Change | % Change | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Compensation | $ | 216.5 | $ | 213.8 | $ | (2.7) | (1) | % | |||||||||||||||
| Advertising | 15.3 | 9.9 | (5.4) | (55) | % | ||||||||||||||||||
| Rent | 10.1 | 10.2 | 0.1 | 1 | % | ||||||||||||||||||
| Other | 96.6 | 97.3 | 0.7 | 1 | % | ||||||||||||||||||
| Total SG&A expenses | $ | 338.5 | $ | 331.2 | $ | (7.3) | (2) | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Long-term compensation charges | $ | (2.2) | $ | — | |||||||||||||||||||
| Total SG&A adjustments | $ | (2.2) | $ | — | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses | $ | 336.3 | $ | 331.2 | $ | (5.1) | (2) | % | |||||||||||||||
| Reported: | |||||||||||||||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||||||||||||||
| Compensation | 45.5 | % | 42.4 | % | (310) | bps | |||||||||||||||||
| Advertising | 3.2 | % | 2.0 | % | (120) | bps | |||||||||||||||||
| Rent | 2.1 | % | 2.0 | % | (10) | bps | |||||||||||||||||
| Other | 20.3 | % | 19.3 | % | (100) | bps | |||||||||||||||||
| Total SG&A expenses as a % of gross profit | 71.1 | % | 65.7 | % | (540) | bps | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Long-term compensation charges | (0.4) | % | — | % | |||||||||||||||||||
| Total effect of adjustments | (0.4) | % | — | % | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses as a % of gross profit | 70.7 | % | 65.7 | % | (500) | bps | |||||||||||||||||
Non-GAAP Reconciliation - EchoPark Segment - SG&A Expenses
| Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
| 2024 | 2023 | Change | % Change | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Compensation | $ | 25.2 | $ | 39.7 | $ | 14.5 | 37 | % | |||||||||||||||
| Advertising | 6.6 | 15.8 | 9.2 | 58 | % | ||||||||||||||||||
| Rent | (0.8) | 1.1 | 1.9 | 173 | % | ||||||||||||||||||
| Other | 14.6 | 17.2 | 2.6 | 15 | % | ||||||||||||||||||
| Total SG&A expenses | $ | 45.6 | $ | 73.8 | $ | 28.2 | 38 | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Closed store accrued expenses | $ | (2.1) | $ | — | |||||||||||||||||||
| Severance and long-term compensation charges | (2.1) | (2.0) | |||||||||||||||||||||
| Total SG&A adjustments | $ | (4.2) | $ | (2.0) | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses | $ | 41.4 | $ | 71.8 | $ | 30.4 | 42 | % | |||||||||||||||
| Reported: | |||||||||||||||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||||||||||||||
| Compensation | 47.8 | % | 100.6 | % | 5,280 | bps | |||||||||||||||||
| Advertising | 12.6 | % | 40.0 | % | 2,740 | bps | |||||||||||||||||
| Rent | (1.4) | % | 2.7 | % | 410 | bps | |||||||||||||||||
| Other | 27.6 | % | 43.9 | % | 1,630 | bps | |||||||||||||||||
| Total SG&A expenses as a % of gross profit | 86.6 | % | 187.2 | % | 10,060 | bps | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Closed store accrued expenses | (4.0) | % | — | % | |||||||||||||||||||
| Severance and long-term compensation charges | (4.0) | % | (5.1) | % | |||||||||||||||||||
| Total effect of adjustments | (8.0) | % | (5.1) | % | |||||||||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Total adjusted SG&A expenses as a % of gross profit | 78.6 | % | 182.1 | % | 10,350 | bps | |||||||||||||||||
Non-GAAP Reconciliation - Powersports Segment - SG&A Expenses
| Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
| 2024 | 2023 | Change | % Change | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Compensation | $ | 5.6 | $ | 5.3 | $ | (0.3) | (6) | % | |||||||||||||||
| Advertising | 0.4 | 0.4 | — | — | % | ||||||||||||||||||
| Rent | — | — | — | — | % | ||||||||||||||||||
| Other | 2.1 | 2.1 | — | — | % | ||||||||||||||||||
| Total SG&A expenses | $ | 8.1 | $ | 7.8 | $ | (0.3) | (4) | % | |||||||||||||||
| Reported: | |||||||||||||||||||||||
| SG&A expenses as a % of gross profit: | |||||||||||||||||||||||
| Compensation | 72.7 | % | 53.9 | % | (1,880) | bps | |||||||||||||||||
| Advertising | 5.1 | % | 4.2 | % | (90) | bps | |||||||||||||||||
| Rent | 0.4 | % | 0.4 | % | — | bps | |||||||||||||||||
| Other | 26.6 | % | 21.6 | % | (500) | bps | |||||||||||||||||
| Total SG&A expenses as a % of gross profit | 104.8 | % | 80.1 | % | (2,470) | bps | |||||||||||||||||
Non-GAAP Reconciliation - Franchised Dealerships Segment - Income (Loss) Before Taxes and Segment Income (Loss)
| Three Months Ended March 31, | |||||||||||||||||
| 2024 | 2023 | % Change | |||||||||||||||
| (In millions) | |||||||||||||||||
| Reported: | |||||||||||||||||
| Income (loss) before taxes | $ | 62.7 | $ | 109.8 | (43) | % | |||||||||||
| Add: Impairment charges | 1.0 | — | |||||||||||||||
| Segment income (loss) | $ | 63.7 | $ | 109.8 | (42) | % | |||||||||||
| Adjustments: | |||||||||||||||||
| Long-term compensation charges | $ | 2.2 | $ | — | |||||||||||||
| Total pre-tax adjustments | $ | 2.2 | $ | — | |||||||||||||
| Adjusted: | |||||||||||||||||
| Segment income (loss) | $ | 65.9 | $ | 109.8 | (40) | % | |||||||||||
Non-GAAP Reconciliation - EchoPark Segment - Income (Loss) Before Taxes and Segment Income (Loss)
| Three Months Ended March 31, | |||||||||||||||||
| 2024 | 2023 | % Change | |||||||||||||||
| (In millions) | |||||||||||||||||
| Reported: | |||||||||||||||||
| Income (loss) before taxes | $ | (2.9) | $ | (46.8) | 94 | % | |||||||||||
| Add: Impairment charges | — | — | |||||||||||||||
| Segment income (loss) | $ | (2.9) | $ | (46.8) | 94 | % | |||||||||||
| Adjustments: | |||||||||||||||||
| Closed store accrued expenses | $ | 2.1 | $ | — | |||||||||||||
| Severance and long-term compensation charges | 2.1 | 2.0 | |||||||||||||||
| Total pre-tax adjustments | $ | 4.2 | $ | 2.0 | |||||||||||||
| Adjusted: | |||||||||||||||||
| Segment income (loss) | $ | 1.3 | $ | (44.8) | 103 | % | |||||||||||
Non-GAAP Reconciliation - Powersports Segment - Income (Loss) Before Taxes and Segment Income (Loss)
| Three Months Ended March 31, | |||||||||||||||||
| 2024 | 2023 | % Change | |||||||||||||||
| (In millions) | |||||||||||||||||
| Reported: | |||||||||||||||||
| Income (loss) before taxes | $ | (2.3) | $ | 0.6 | (483) | % | |||||||||||
| Add: Impairment charges | — | — | |||||||||||||||
| Segment income (loss) | $ | (2.3) | $ | 0.6 | (483) | % | |||||||||||
Non-GAAP Reconciliation - Consolidated - Net Income (Loss) and Diluted Earnings (Loss) Per Share
| Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||||||||||
| Weighted- Average Shares | Net Income (Loss) | Per Share Amount | Weighted- Average Shares | Net Income (Loss) | Per Share Amount | ||||||||||||||||||||||||||||||
| (In millions, except per share amounts) | |||||||||||||||||||||||||||||||||||
| Reported net income (loss), diluted shares, and diluted earnings (loss) per share | 34.9 | $ | 42.0 | $ | 1.20 | 36.9 | $ | 47.7 | $ | 1.29 | |||||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||
| Closed store accrued expenses | $ | 2.1 | $ | — | |||||||||||||||||||||||||||||||
| Impairment charges | 1.0 | — | |||||||||||||||||||||||||||||||||
| Severance and long-term compensation charges | 4.3 | 2.0 | |||||||||||||||||||||||||||||||||
| Total pre-tax items of interest | $ | 7.4 | $ | 2.0 | |||||||||||||||||||||||||||||||
| Tax effect of above items | (1.9) | (0.5) | |||||||||||||||||||||||||||||||||
| Adjusted net income (loss), diluted shares, and diluted earnings (loss) per share | 34.9 | $ | 47.5 | $ | 1.36 | 36.9 | $ | 49.2 | $ | 1.33 | |||||||||||||||||||||||||
Non-GAAP Reconciliation - Adjusted EBITDA
| Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
| Franchised Dealerships Segment | EchoPark Segment | Powersports Segment | Total | Franchised Dealerships Segment | EchoPark Segment | Powersports Segment | Total | ||||||||||||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 42.0 | $ | 47.7 | |||||||||||||||||||||||||||||||||||||||||||
| Provision for income taxes | 15.5 | 15.9 | |||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before taxes | $ | 62.7 | $ | (2.9) | $ | (2.3) | $ | 57.5 | $ | 109.8 | $ | (46.8) | $ | 0.6 | $ | 63.6 | |||||||||||||||||||||||||||||||
| Non-floor plan interest (1) | 26.3 | 0.6 | 0.5 | 27.4 | 25.4 | 0.9 | 0.6 | 26.9 | |||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization (2) | 31.5 | 5.4 | 1.0 | 37.9 | 28.2 | 7.0 | 0.7 | 35.9 | |||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | 4.4 | — | — | 4.4 | 5.0 | — | — | 5.0 | |||||||||||||||||||||||||||||||||||||||
| Impairment charges | 1.0 | — | — | 1.0 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Severance and long-term compensation charges | 2.2 | 2.1 | — | 4.3 | — | 2.0 | — | 2.0 | |||||||||||||||||||||||||||||||||||||||
| Closed store accrued expenses | $ | — | $ | 2.1 | $ | — | $ | 2.1 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 128.1 | $ | 7.3 | $ | (0.8) | $ | 134.6 | $ | 168.4 | $ | (36.9) | $ | 1.9 | $ | 133.4 | |||||||||||||||||||||||||||||||
(1)Includes interest expense, other, net in the accompanying consolidated statements of operations, net of any amortization of debt issuance costs or net debt discount/premium included in (2) below.
(2)Includes the following line items from the accompanying consolidated statements of cash flows: depreciation and amortization of property and equipment; debt issuance cost amortization; and debt discount amortization, net of premium amortization.
Non-GAAP Reconciliation - EchoPark Segment Operations and Closed Stores
| Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Better / (Worse) % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||
| EchoPark Operations | Closed Stores | Total EchoPark Segment | EchoPark Operations | Closed Stores | Total EchoPark Segment | EchoPark Operations | Closed Stores | Total EchoPark Segment | |||||||||||||||||||||||||||||||||||||||||||||
| (In millions, except unit and per unit data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues | $ | 546.2 | $ | 13.2 | $ | 559.4 | $ | 489.9 | $ | 160.6 | $ | 650.5 | 11 | % | (92) | % | (14) | % | |||||||||||||||||||||||||||||||||||
| Total gross profit | $ | 53.2 | $ | (0.6) | $ | 52.6 | $ | 29.7 | $ | 9.7 | $ | 39.4 | 79 | % | (106) | % | 34 | % | |||||||||||||||||||||||||||||||||||
| Income (loss) before taxes | $ | 2.9 | $ | (5.8) | $ | (2.9) | $ | (28.0) | $ | (18.8) | $ | (46.8) | 110 | % | 69 | % | 94 | % | |||||||||||||||||||||||||||||||||||
| Non-floor plan interest (1) | 0.6 | — | 0.6 | 0.5 | 0.4 | 0.9 | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization (2) | 5.4 | — | 5.4 | 5.3 | 1.7 | 7.0 | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||||||||
| Severance and long-term compensation charges | 0.5 | 1.6 | 2.1 | — | 2.0 | 2.0 | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||||||||
| Closed store accrued expenses | — | 2.1 | 2.1 | — | — | — | NM | NM | NM | ||||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 9.4 | $ | (2.1) | $ | 7.3 | $ | (22.2) | $ | (14.7) | $ | (36.9) | 142 | % | 86 | % | 120 | % | |||||||||||||||||||||||||||||||||||
| Used vehicle unit sales volume | 17,618 | 363 | 17,981 | 15,551 | 4,429 | 19,980 | 13 | % | (92) | % | (10) | % | |||||||||||||||||||||||||||||||||||||||||
| Total used vehicle and F&I gross profit per unit | $ | 3,018 | $ | 314 | $ | 2,955 | $ | 1,833 | $ | 2,290 | $ | 1,906 | 65 | % | (86) | % | 55 | % | |||||||||||||||||||||||||||||||||||
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 | First Quarter 2024 Updated April 25, 2024 SONIC AUTOMOTIVE
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 • 107 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 April 25, 2024. * Refer to appendix for calculation and reconciliation of Adjusted EPS (a non-GAAP measure). $3.30 $(1.21) $8.06 $2.23 $4.97 $1.29 $1.20 $2.65 $3.85 $8.46 $9.61 $6.81 $1.33 $1.36 $- $2 $4 $6 $8 $10 $12 $14 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q1 2023 Q1 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 $2.8 $2.8 $156 $215 $421 $540 $384 $94 $45 $293 $359 $692 $839 $675 $168 $123 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q1 2023 Q1 2024 Total Revenues, Segment Income, and Adjusted EBITDA* Revenue (Billions) Segment Income (Millions) Adjusted EBITDA* (Millions) * Refer to appendix for calculation and reconciliation of Adjusted EBITDA and Adjusted SG&A Expenses As % Of Gross Profit (non-GAAP measures). 3.6% 2.3% 1.5% 1.7% 2.0% 2.0% 3.2% 47.7% 45.7% 40.8% 40.2% 42.1% 42.4% 45.0% 21.7% 19.8% 16.1% 16.2% 19.5% 19.3% 20.3% 3.8% 3.9% 2.6% 2.0% 2.0% 2.0% 2.1% 76.8% 71.7% 60.9% 60.1% 65.6% 65.7% 70.7% 71.9% 71.4% 61.0% 59.9% 64.6% 65.7% 71.1% FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q1 2023 Q1 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 24.5 25.3 $42.9 $45.9 $49.9 $56.1 $57.9 $57.9 $56.9 $2,078 $2,536 $4,595 $6,591 $4,836 $5,463 $3,722 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q1 2023 Q1 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 25.1 25.7 $22.1 $23.0 $27.5 $31.3 $30.4 $30.6 $28.4 $1,310 $1,207 $1,784 $1,607 $1,626 $1,626 $1,592 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q1 2023 Q1 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 adding 300 incremental technicians in FY 2024, projected to generate approximately $100M in incremental annualized fixed operations gross profit • 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 $2,360 $2,348 77.4% 77.9% 77.6% 72.9% 71.2% 70.2% 72.7% 33.9% 36.3% 39.1% 45.1% 42.4% 42.1% 42.9% FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q1 2023 Q1 2024 F&I Gross Profit Per Unit and Product Penetration Rates F&I GPU Finance Contract Penetration Rate Warranty Contract Penetration Rate $669 $595 $673 $787 $853 $210 $221 49.0% 49.8% 50.2% 49.5% 49.7% 49.5% 50.2% FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q1 2023 Q1 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 $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 14.8% 7.6% Ja n- 19 Ap r- 19 Ju l-1 9 O ct -1 9 Ja n- 20 Ap r- 20 Ju l-2 0 O ct -2 0 Ja n- 21 Ap r- 21 Ju l-2 1 O ct -2 1 Ja n- 22 Ap r- 22 Ju l-2 2 O ct -2 2 Ja n- 23 Ap r- 23 Ju l-2 3 O ct -2 3 Ja n- 24 Hybrid Vehicle vs. EV Industry Sales Volume Penetration Hybrid (HEV/PHEV) Penetration % BEV Penetration % So ur ce : M or ga n St an le y R es ea rc h 8 100% Luxury Import Domestic Total Sonic Q1 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* in Q1 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. $22.1 $16.6 $(27.0) $(70.1) $(49.4) $(22.2) $9.4 $(0.6) $(5.6) $(19.3) $(35.3) $(33.6) $(14.7) $(2.1) $(110) $(60) $(10) $40 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q1 2023 Q1 2024 EchoPark Segment Adjusted EBITDA* EchoPark Operations Closed Stores 49,520 57,161 77,835 64,107 73,676 19,980 17,981 - 200 400 600 800 1,000 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q1 2023 Q1 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 20 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 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 • 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) $(36.9) $7.3 $(3) $(297) $(722) $68 $(97) $(592) $294 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q1 2023 Q1 2024 EchoPark Adjusted EBITDA* and GPU Adjusted EBITDA* (Millions) Retail Used 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 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 Note: Gains in used vehicle volume and F&I are estimates of future results. Actual results may differ. See “Forward-Looking Statements.”
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 2.25% • Reduced outstanding shares by 21% since 2019 ($260 million remaining authorization, or ~15% of market cap) • Net debt to adjusted EBITDA ratio* of 2.18 for the 12 months ended Q1 2024 is within our target leverage range Consolidated Company Strategy $29 $244 $399 $501 $374 $335 $280 $526 $703 $794 $846 $847 $- $200 $400 $600 $800 $1,000 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 3/31/2024 $ In M ill io ns Strong Balance Sheet and Liquidity Cash and Floor Plan Deposit Balance Total Liquidity * Refer to appendix for calculation and reconciliation of Net Debt to Adjusted EBITDA Ratio (a non-GAAP measure). Note: Dividend yield and market cap are based on stock price as of April 24, 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 2019 2020 2021 2022 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 >50 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 in $2,400 per unit range • Expect 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 $7.3M in the first quarter of 2024, exceeding previously stated target of breakeven adjusted EBITDA*. Remain confident in ability to maintain positive quarterly adjusted EBITDA* for the remainder of FY 2024, driven by: • Expected benefits of smaller store footprint, driving higher unit volume throughput per store and positive used vehicle GPU • Expect high single digit percentage F&I GPU growth • 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-$13 million, with majority coming in Q3 (Q1 & Q4 near breakeven due to seasonality) * Refer to appendix for calculation and reconciliation of Adjusted EBITDA (a non-GAAP measure). Note: Above outlook is based on projections. Actual results may differ. See “Forward-Looking Statements.” Financial data may also include certain forward-looking information that is not presented in accordance with GAAP. We believe that a quantitative reconciliation of such forward-looking information to the most directly comparable GAAP financial measure cannot be made available without unreasonable efforts, because a reconciliation of these non-GAAP financial measures would require an estimate of future non-operating items such as impairment charges or gain/loss on property dispositions. Neither the timing nor likelihood of these events, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of such forward-looking information to the most directly comparable GAAP financial measure is not provided. 13
Appendix: Financial Tables & Non-GAAP Reconciliations
NYSE SAH GAAP Income Statement – Annual Trend – Consolidated 15 NM = Not MeaningfulNote: Earnings (loss) per share and gross profit per unit metrics are calculated based on actual unrounded amounts. FY 2023 Better / (Worse) % Change (In millions, except unit, per unit, and per share data) FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 Year-Over-Year Revenues: Retail new vehicles 6,304.6$ 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$ (1.19)$ 3.31$ 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 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. Note: Balance sheet amounts are as of December 31 for the FY then ended, balance sheet amounts for LTM Q1 2024 are as of March 31, 2024. (In millions, except per share data) LTM Q1 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) 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) 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) 172.5$ 178.2$ 88.5$ 348.9$ (51.4)$ 144.1$ Income tax (benefit) expense 63.4 63.7 101.5 109.3 15.6 55.0 Income (loss) before taxes 235.9 241.9 190.0 458.2 (35.8) 199.1 Non-floor plan interest 108.6 108.1 84.7 44.7 38.7 50.5 Depreciation and amortization 150.8 148.8 132.7 104.3 93.9 95.6 Stock-based compensation expense 22.7 23.3 16.0 15.0 11.7 10.8 Loss (gain) on exit of leased dealerships 4.3 4.3 - - - (0.2) Impairment charges 80.3 79.3 320.4 0.1 270.0 20.8 Loss on debt extinguishment - - - 15.6 - 6.7 Long-term compensation charges 7.4 5.1 4.4 8.0 - - Acquisition and disposition-related (gain) loss (20.4) (20.4) (9.7) (0.4) (8.2) (74.8) Hail and storm damage charges 1.9 1.9 - - - - Used vehicle inventory valuation adjustment 10.0 10.0 - - - - Closed store accrued expenses 2.1 - - - - - Adjusted EBITDA 603.6$ 602.3$ 738.5$ 645.5$ 370.3$ 308.5$ Long-term debt (including current portion) 1,651.4$ 1,676.6$ 1,751.7$ 1,561.2$ 720.1$ 706.9$ Cash and equivalents (15.1) (28.9) (229.2) (299.4) (170.3) (29.1) Floor plan deposit balance (320.0) (345.0) (272.0) (99.8) (73.2) - Net debt 1,316.3$ 1,302.7$ 1,250.5$ 1,162.0$ 476.6$ 677.8$ Net debt to adjusted EBITDA ratio 2.18 2.16 1.69 1.80 1.29 2.20 Long-term debt (including current portion) to adjusted EBITDA ratio 2.74 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. Q1 2024 Better / (Worse) % Change (In millions, except unit, per unit, and per share data) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Sequential Year-Over-Year Revenues: Retail new vehicles 1,455.8$ 1,680.2$ 1,573.5$ 1,608.2$ 1,442.8$ (13%) 1% Fleet new vehicles 19.6 21.8 23.2 28.3 18.8 (10%) 4% Total new vehicles 1,475.4 1,702.0 1,596.7 1,636.5 1,461.6 (13%) 1% Used vehicles 1,215.6 1,222.4 1,340.4 1,305.9 1,344.9 (1%) (10%) Wholesale vehicles 77.3 62.6 79.3 91.5 85.6 24% (10%) Total vehicles 2,768.3 2,987.0 3,016.4 3,033.9 2,892.1 (7%) (4%) Parts, service and collision repair 446.7 431.9 453.4 443.7 430.5 3% 4% Finance, insurance and other, net ("F&I") 169.0 166.0 173.7 175.3 168.6 2% 0% Total revenues 3,384.0 3,584.9 3,643.5 3,652.9 3,491.2 (6%) (3%) Gross profit: Retail new vehicles 96.4 124.5 131.4 141.4 138.1 (23%) (30%) Fleet new vehicles 0.7 0.9 0.9 1.3 0.9 (27%) (27%) Total new vehicles 97.1 125.4 132.3 142.7 139.0 (23%) (30%) Used vehicles 47.0 37.5 52.3 31.5 30.0 26% 57% Wholesale vehicles (0.8) (3.2) (1.4) (1.0) 3.0 77% (124%) Total vehicles 143.3 159.7 183.2 173.2 172.0 (10%) (17%) Parts, service and collision repair 223.9 215.4 225.3 220.4 212.9 4% 5% Finance, insurance and other, net 169.0 166.0 173.7 175.3 168.6 2% 0% Total gross profit 536.2 541.1 582.2 568.9 553.5 (1%) (3%) SG&A expenses (392.2) (386.3) (409.6) (391.9) (412.8) (2%) 5% Impairment charges (1.0) (16.7) - (62.6) - NM NM Depreciation and amortization (36.3) (36.6) (35.2) (36.1) (34.3) 1% (6%) Operating income (loss) 106.7 101.5 137.4 78.3 106.4 5% 0% Interest expense, floor plan (20.3) (18.4) (17.4) (17.0) (14.6) (10%) (40%) Interest expense, other, net (29.0) (28.3) (29.0) (28.9) (28.4) (2%) (2%) Other income (expense), net 0.1 (0.1) 0.2 0.1 0.2 NM NM Income (loss) before taxes 57.5 54.7 91.2 32.5 63.6 5% (10%) Income tax benefit (expense) (15.5) (16.0) (22.8) (9.1) (15.9) 3% 2% Net income (loss) 42.0$ 38.7$ 68.4$ 23.4$ 47.7$ 8% (12%) Diluted weighted-average shares outstanding 34.9 34.8 35.6 36 36.9 0% 5% Diluted earnings (loss) per share 1.20$ 1.11$ 1.92$ 0.65$ 1.29$ 8% (7%) Unit sales volume: Retail new vehicles 26,142 29,439 28,260 28,754 25,657 (11%) 2% Fleet new vehicles 379 500 469 590 441 (24%) (14%) Used vehicles 44,056 42,216 45,428 42,972 45,531 4% (3%) Wholesale vehicles 8,112 7,127 7,996 8,801 8,406 14% (3%) Gross profit per unit ("GPU"): Retail new vehicles 3,688$ 4,230$ 4,649$ 4,918$ 5,381$ (13%) (31%) Used vehicles 1,068$ 888$ 1,150$ 732$ 660$ 20% 62% F&I 2,407$ 2,317$ 2,357$ 2,445$ 2,369$ 4% 2%
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. Q1 2024 Better / (Worse) % Change (In millions, except per share data) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Sequential Year-Over-Year Reported net income (loss) 42.0$ 38.7$ 68.4$ 23.4$ 47.7$ 8% (12%) Adjustments: Impairment charges 1.0$ 16.7$ -$ 62.6$ -$ NM NM Acquisition and disposition-related (gain) loss - - - (20.7) - NM NM Severance and long-term compensation charges 4.3 - 0.9 2.2 2.0 NM NM Hail and storm damage charges - - - 1.9 - NM NM Lease exit charges - - 3.9 0.4 - NM NM Used vehicle inventory valuation adjustment - - - 10.0 - NM NM Closed store accrued expenses 2.1 - - - - NM NM Total pre-tax adjustments 7.4 16.7 4.8 56.4 2.0 NM NM Tax effect of above items (1.9) (4.3) (1.2) (13.8) (0.5) NM NM Non-recurring tax items - 5.8 - - - NM NM Total net income effect of adjustments 5.5 18.2 3.6 42.6 1.5 NM NM Adjusted net income (loss) 47.5$ 56.9$ 72.0$ 66.0$ 49.2$ (17%) (4%) Diluted weighted-average shares outstanding 34.9 34.8 35.6 36 36.9 0% 5% Adjusted diluted earnings (loss) per share 1.36$ 1.63$ 2.02$ 1.83$ 1.33$ (17%) 2% Reported gross profit 536.2$ 541.1$ 582.2$ 568.9$ 553.5$ (1%) (3%) Used vehicle inventory valuation adjustment - - - 10.0 - NM NM Adjusted gross profit 536.2$ 541.1$ 582.2$ 578.9$ 553.5$ (1%) (3%) Reported SG&A expenses (392.2)$ (386.3)$ (409.6)$ (391.9)$ (412.8)$ (2%) 5% Acquisition and disposition-related (gain) loss - - - (20.7) - NM NM Severance and long-term compensation charges 4.3 - 0.9 2.2 2.0 NM NM Hail and storm damage charges - - - 1.9 - NM NM Lease exit charges - - 3.9 0.4 - NM NM Closed store accrued expenses 2.1 - - - - NM NM Adjusted SG&A expenses (385.8)$ (386.3)$ (404.8)$ (408.1)$ (410.8)$ 0% 6% Adjusted SG&A expenses as a percentage of gross profit 72.0% 71.4% 69.5% 70.5% 74.2% (60) bps 220 bps Reported net income (loss) 42.0$ 38.7$ 68.4$ 23.4$ 47.7$ NM NM Income tax (benefit) expense 15.5 16.0 22.8 9.1 15.9 NM NM Income (loss) before taxes 57.5 54.7 91.2 32.5 63.6 NM NM Non-floor plan interest 27.4 26.7 27.3 27.2 26.9 NM NM Depreciation and amortization 37.9 38.3 36.9 37.7 35.9 NM NM Stock-based compensation expense 4.4 6.0 6.7 5.6 5.0 NM NM Lease exit charges - - 3.9 0.4 - NM NM Impairment charges 1.0 16.7 - 62.6 - NM NM Severance and long-term compensation charges 4.3 - 0.9 2.2 2.0 NM NM Acquisition and disposition-related (gain) loss 2.1 - 0.3 (20.7) - NM NM Hail and storm damage charges - - - 1.9 - NM NM Used vehicle inventory valuation adjustment - - - 10.0 - NM NM Adjusted EBITDA 134.6$ 142.4$ 167.2$ 159.4$ 133.4$ (5%) 1%
NYSE SAH GAAP Income Statement – Quarterly Trend – Franchised Dealerships Segment 19 NM = Not Meaningful Q1 2024 Better / (Worse) % Change (In millions, except unit and per unit data) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Sequential Year-Over-Year Revenues: Retail new vehicles 1,439.9$ 1,664.1$ 1,546.7$ 1,583.3$ 1,421.0$ (13%) 1% Fleet new vehicles 19.6 21.8 23.2 28.3 18.8 (10%) 4% Total new vehicles 1,459.5 1,685.9 1,569.9 1,611.6 1,439.8 (13%) 1% Used vehicles 729.3 727.5 780.7 774.5 767.6 0% (5%) Wholesale vehicles 48.6 39.3 51.4 55.6 58.4 23% (17%) Total vehicles 2,237.4 2,452.7 2,402.0 2,441.7 2,265.8 (9%) (1%) Parts, service and collision repair 439.9 425.2 431.8 433.4 423.8 3% 4% Finance, insurance and other, net ("F&I") 119.6 123.2 126.0 132.2 117.1 (3%) 2% Total revenues 2,796.9 3,001.1 2,959.8 3,007.3 2,806.7 (7%) 0% Gross profit: Retail new vehicles 94.1 122.2 125.5 136.9 134.0 (23%) (30%) Fleet new vehicles 0.7 0.9 0.9 1.3 0.9 (27%) (27%) Total new vehicles 94.8 123.1 126.4 138.2 134.9 (23%) (30%) Used vehicles 40.8 35.1 42.6 44.5 40.8 16% 0% Wholesale vehicles (0.2) (2.7) (1.5) (1.0) 1.9 93% (110%) Total vehicles 135.4 155.5 167.5 181.7 177.6 (13%) (24%) Parts, service and collision repair 220.8 212.6 215.1 215.4 209.6 4% 5% Finance, insurance and other, net 119.6 123.2 126.0 132.2 117.1 (3%) 2% Total gross profit 475.8 491.3 508.6 529.3 504.3 (3%) (6%) SG&A expenses (338.5) (329.1) (338.3) (316.1) (331.2) (3%) (2%) Impairment charges (1.0) (1.0) - - - NM NM Depreciation and amortization (29.8) (29.4) (28.2) (27.9) (26.5) (1%) (12%) Operating income (loss) 106.5 131.8 142.1 185.3 146.6 (19%) (27%) Interest expense, floor plan (16.0) (14.6) (12.9) (11.9) (9.9) (10%) (62%) Interest expense, other, net (27.8) (27.5) (27.9) (27.5) (26.9) (1%) (3%) Other income (expense), net - 0.1 0.2 - - NM NM Income (loss) before taxes 62.7$ 89.8$ 101.5$ 145.9$ 109.8$ (30%) (43%) Unit sales volume: Retail new vehicles 25,297 28,491 26,869 27,358 24,539 (11%) 3% Fleet new vehicles 379 500 469 590 441 (24%) (14%) Used vehicles 25,666 24,365 25,541 25,197 25,107 5% 2% Wholesale vehicles 5,105 4,440 5,163 5,516 5,483 15% (7%) Gross profit per unit ("GPU"): Retail new vehicles 3,722$ 4,289$ 4,672$ 5,003$ 5,463$ (13%) (32%) Used vehicles 1,592$ 1,440$ 1,666$ 1,765$ 1,626$ 11% (2%) F&I 2,348$ 2,330$ 2,403$ 2,516$ 2,360$ 1% (1%) Note: Gross profit per unit metrics are calculated based on actual unrounded amounts.
NYSE SAH Non-GAAP Reconciliation – Quarterly Trend – Franchised Dealerships Segment 20 NM = Not MeaningfulNote: SG&A expenses as a percentage of gross profit metrics are calculated based on actual unrounded amounts. Q1 2024 Better / (Worse) % Change (In millions) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Sequential Year-Over-Year Reported income (loss) before taxes 62.7$ 89.8$ 101.5$ 145.9$ 109.8$ (30%) (43%) Impairment charges 1.0 1.0 - - - NM NM Segment income (loss) 63.7$ 90.8$ 101.5$ 145.9$ 109.8$ (30%) (42%) Acquisition and disposition-related (gain) loss - - - (20.9) - NM NM Long-term compensation charges 2.2 - - - - NM NM Hail and storm damage charges - - - 1.9 - NM NM Adjusted segment income (loss) 65.9$ 90.8$ 101.5$ 126.9$ 109.8$ (27%) (40%) Reported SG&A expenses (338.5)$ (329.1)$ (338.3)$ (316.1)$ (331.2)$ (3%) (2%) Acquisition and disposition-related (gain) loss - - - (20.9) - NM NM Long-term compensation charges 2.2 - - - - NM NM Hail and storm damage charges - - - 1.9 - NM NM Adjusted SG&A expenses (336.3)$ (329.1)$ (338.3)$ (335.1)$ (331.2)$ (2%) (2%) Adjusted SG&A expenses as a percentage of gross profit 70.7% 67.0% 66.5% 63.3% 65.7% (370) bps (500) bps Income (loss) before taxes 62.7$ 89.8$ 101.5$ 145.9$ 109.8$ NM NM Non-floor plan interest 26.3 25.9 26.2 25.8 25.4 NM NM Depreciation and amortization 31.5 31.2 29.9 29.3 28.2 NM NM Stock-based compensation expense 4.4 6.0 6.7 5.6 5.0 NM NM Impairment charges 1.0 1.0 - - - NM NM Long-term compensation charges 2.2 - - - - NM NM Acquisition and disposition-related (gain) loss - - 0.2 (20.7) - NM NM Hail and storm damage charges - - - 1.9 - NM NM Adjusted EBITDA 128.1$ 153.9$ 164.5$ 187.8$ 168.4$ (17%) (24%)
NYSE SAH GAAP Income Statement – Quarterly Trend – EchoPark Segment 21 NM = Not MeaningfulNote: Gross profit per unit metrics are calculated based on actual unrounded amounts. Q1 2024 Better / (Worse) % Change (In millions, except unit and per unit data) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Sequential Year-Over-Year Revenues: Retail new vehicles -$ -$ -$ -$ 1.0$ (100%) (100%) Used vehicles 482.9 492.5 554.8 524.0 572.5 (2%) (16%) Wholesale vehicles 28.6 22.7 26.5 35.5 27.0 27% 6% Total vehicles 511.5 515.1 581.4 559.5 600.5 (1%) (15%) Finance, insurance and other, net ("F&I") 47.9 41.5 45.3 41.1 50.0 15% (4%) Total revenues 559.4 556.6 626.7 600.6 650.5 1% (14%) Gross profit: Retail new vehicles - - - - 0.1 (100%) (100%) Used vehicles 5.3 1.7 7.3 (14.3) (11.8) 208% 145% Wholesale vehicles (0.6) (0.4) 0.2 - 1.1 (14%) (140%) Total vehicles 4.7 1.3 7.5 (14.3) (10.6) 275% 145% Finance, insurance and other, net 47.9 41.5 45.3 41.1 50.0 15% (4%) Total gross profit 52.6 42.8 52.8 26.8 39.4 23% 33% SG&A expenses (45.6) (48.0) (58.6) (66.6) (73.8) 5% 38% Impairment charges - (15.7) - (62.6) - NM NM Depreciation and amortization (5.5) (6.2) (6.1) (7.4) (7.0) 10% 22% Operating income (loss) 1.5 (27.1) (11.9) (109.8) (41.4) 106% 104% Interest expense, floor plan (3.8) (3.8) (4.3) (4.8) (4.6) 1% 16% Interest expense, other, net (0.7) (0.7) (0.7) (0.9) (0.9) 2% 25% Other income (expense), net 0.1 - - 0.1 0.1 NM NM Income (loss) before taxes (2.9)$ (31.6)$ (16.9)$ (115.4)$ (46.8)$ 91% 94% Unit sales volume: Retail new vehicles - - - - 11 0% (100%) Used vehicles 17,981 17,562 19,050 17,084 19,980 2% (10%) Wholesale vehicles 2,994 2,621 2,740 3,235 2,916 14% 3% Gross profit per unit ("GPU"): Total used vehicle and F&I 2,955$ 2,461$ 2,767$ 1,569$ 1,906$ 20% 55%
NYSE SAH Non-GAAP Reconciliation – Quarterly Trend – EchoPark Segment 22 NM = Not MeaningfulNote: SG&A expenses as a percentage of gross profit metrics are calculated based on actual unrounded amounts. Q1 2024 Better / (Worse) % Change (In millions) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Sequential Year-Over-Year Reported income (loss) before taxes (2.9)$ (31.6)$ (16.9)$ (115.4)$ (46.8)$ 91% 94% Impairment charges - 15.7 - 62.6 - NM NM Segment income (loss) (2.9)$ (15.9)$ (16.9)$ (52.8)$ (46.8)$ 81% 94% Acquisition and disposition-related (gain) loss - - - 0.2 - NM NM Lease exit charges - - 3.9 0.4 - NM NM Severance and long-term compensation charges 2.1 - 0.9 2.2 2.0 NM NM Used vehicle inventory valuation adjustment - - - 10.0 - NM NM Closed store accrued expenses 2.1 - - - - NM NM Adjusted segment income (loss) 1.3$ (15.9)$ (12.1)$ (40.0)$ (44.8)$ 108% 103% Reported gross profit 52.6$ 42.8$ 52.8$ 26.8$ 39.4$ 23% 33% Used vehicle inventory valuation adjustment - - - 10.0 - NM NM Adjusted gross profit 52.6$ 42.8$ 52.8$ 36.8$ 39.4$ 23% 33% Reported SG&A expenses (45.6)$ (48.0)$ (58.6)$ (66.6)$ (73.8)$ 5% 38% Acquisition and disposition-related (gain) loss - - - 0.2 - NM NM Lease exit charges - - 3.9 0.4 - NM NM Severance and long-term compensation charges 2.1 - 0.9 2.2 2.0 NM NM Closed store accrued expenses 2.1 - - - - NM NM Adjusted SG&A expenses (41.4)$ (48.0)$ (53.8)$ (63.8)$ (71.8)$ 14% 42% Adjusted SG&A expenses as a percentage of gross profit 78.6% 112.3% 101.9% 173.5% 182.1% 3,370 bps 10,350 bps Income (loss) before taxes (2.9)$ (31.6)$ (16.9)$ (115.4)$ (46.8)$ NM NM Non-floor plan interest 0.6 0.7 0.7 0.8 0.9 NM NM Depreciation and amortization 5.4 6.1 6.1 7.6 7.0 NM NM Lease exit charges - - 3.9 0.4 - NM NM Impairment charges - 15.7 - 62.6 - NM NM Long-term compensation charges 2.1 - 0.9 2.2 2.0 NM NM Acquisition and disposition-related (gain) loss 2.1 - 0.1 - - NM NM Used vehicle inventory valuation adjustment - - - 10.0 - NM NM Adjusted EBITDA 7.3$ (9.1)$ (5.2)$ (31.8)$ (36.9)$ (180%) (120%)
NYSE SAH Non-GAAP Reconciliation – Adjusted EBITDA Trend – EchoPark Segment 23 (In millions) Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Income (loss) before taxes (32.9)$ (26.8)$ (35.3)$ (34.2)$ (31.1)$ (238.2)$ (46.8)$ (115.4)$ (16.9)$ (31.6)$ (2.9)$ Non-floor plan interest 0.3 0.7 0.7 1.0 1.1 0.9 0.9 0.8 0.7 0.7 0.6 Depreciation and amortization 4.0 4.9 5.1 5.9 6.8 7.0 7.0 7.4 6.1 6.1 5.4 Loss (gain) on exit of leased dealerships - - - - - - - 0.4 3.9 - - Impairment charges - 0.1 - - - 204.9 - 62.6 - 15.7 - Long-term compensation charges 0.5 6.5 - - - - 2.0 2.2 0.9 - 2.1 Acquisition and disposition-related (gain) loss (0.4) - - - - - - 0.2 0.1 - - Used vehicle inventory adjustment - - - - - - - 10.0 - - - Closed store accrued expenses - - - - - - - - - - 2.1 Adjusted EBITDA (28.5)$ (14.6)$ (29.5)$ (27.3)$ (23.2)$ (25.4)$ (36.9)$ (31.8)$ (5.2)$ (9.1)$ 7.3$ (In millions) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Income (loss) before taxes 0.2$ 1.7$ 2.1$ (14.5)$ 2.1$ 2.6$ 0.2$ (0.8)$ 2.0$ (14.4)$ Non-floor plan interest 0.5 0.4 0.5 0.4 0.4 0.2 0.1 0.2 0.4 0.3 Depreciation and amortization 2.4 2.7 2.7 2.8 2.7 2.8 2.8 2.9 3.3 4.2 Loss (gain) on exit of leased dealerships - - - - - - - - - - Impairment charges 1.9 - 1.1 16.6 - - - - - - Long-term compensation charges - - - - - - - - 0.5 0.5 Acquisition and disposition-related (gain) loss - - - - - - - (5.2) - - Adjusted EBITDA 5.0$ 4.8$ 6.4$ 5.3$ 5.2$ 5.6$ 3.1$ (2.9)$ 6.2$ (9.4)$
NYSE SAH GAAP Income Statement – Quarterly Trend – Powersports Segment 24 NM = Not Meaningful Q1 2024 Better / (Worse) % Change (In millions, except unit and per unit data) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Sequential Year-Over-Year Revenues: Retail new vehicles 15.9$ 16.1$ 26.8$ 24.9$ 20.8$ (2%) NM Used vehicles 3.4 2.4 4.9 7.4 4.8 43% NM Wholesale vehicles 0.1 0.7 1.3 0.4 0.2 NM NM Total vehicles 19.4 19.2 33.0 32.7 25.8 1% NM Parts, service and collision repair 6.8 6.7 21.6 10.3 6.7 1% NM Finance, insurance and other, net ("F&I") 1.5 1.3 2.4 2.0 1.5 14% NM Total revenues 27.7 27.2 57.0 45.0 34.0 2% NM Gross profit: NM Retail new vehicles 2.3 2.3 5.9 4.5 4.0 (2%) NM Used vehicles 0.9 0.7 2.4 1.3 1.0 34% NM Wholesale vehicles - (0.1) (0.1) - - NM NM Total vehicles 3.2 2.9 8.2 5.8 5.0 11% NM Parts, service and collision repair 3.1 2.8 10.2 5.0 3.3 11% NM Finance, insurance and other, net 1.5 1.3 2.4 2.0 1.5 14% NM Total gross profit 7.8 7.0 20.8 12.8 9.8 11% NM SG&A expenses (8.1) (9.2) (12.7) (9.2) (7.8) 11% NM Impairment charges - - - - - NM NM Depreciation and amortization (1.0) (1.0) (0.9) (0.8) (0.8) 4% NM Operating income (loss) (1.3) (3.2) 7.2 2.8 1.2 59% NM Interest expense, floor plan (0.5) - (0.2) (0.3) (0.1) NM NM Interest expense, other, net (0.5) (0.2) (0.4) (0.5) (0.6) (161%) NM Other income (expense), net - (0.1) - - 0.1 NM NM Income (loss) before taxes (2.3)$ (3.5)$ 6.6$ 2.0$ 0.6$ 36% NM Unit sales volume: Retail new vehicles 845 948 1,391 1,396 1,107 (11%) NM Used vehicles 409 289 837 691 444 42% NM Wholesale vehicles 13 66 93 50 7 NM NM Gross profit per unit ("GPU"): Retail new vehicles 2,676$ 2,429$ 4,213$ 3,235$ 3,573$ 10% NM Used vehicles 2,185$ 2,307$ 2,833$ 1,942$ 2,328$ (5%) NM F&I 1,197$ 1,066$ 1,075$ 952$ 980$ 12% NM Note: Gross profit per unit metrics are calculated based on actual unrounded amounts.
NYSE SAH Non-GAAP Reconciliation – Quarterly Trend – Powersports Segment 25 NM = Not MeaningfulNote: SG&A expenses as a percentage of gross profit metrics are calculated based on actual unrounded amounts. Q1 2024 Better / (Worse) % Change (In millions) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Sequential Year-Over-Year Reported income (loss) before taxes (2.3)$ (3.5)$ 6.6$ 2.0$ 0.6$ 36% NM Impairment charges - - - - - NM NM Segment income (loss) (2.3)$ (3.5)$ 6.6$ 2.0$ 0.6$ 36% NM Reported SG&A expenses (8.1)$ (9.2)$ (12.7)$ (9.2)$ (7.8)$ 11% NM Reported SG&A expenses as a percentage of gross profit 104.8% 131.6% 61.1% 71.6% 80.1% 2,680 bps NM Income (loss) before taxes (2.3)$ (3.5)$ 6.6$ 2.0$ 0.6$ NM NM Non-floor plan interest 0.5 0.1 0.4 0.6 0.6 NM NM Depreciation and amortization 1.0 1.0 0.9 0.8 0.7 NM NM Adjusted EBITDA (0.8)$ (2.4)$ 7.9$ 3.4$ 1.9$ (67%) NM
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