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CHARLOTTE, N.C.--(BUSINESS WIRE)--Aug 5, 2024--
* Represents a non-GAAP financial measure — please refer to the discussion and reconciliation of non-GAAP financial measures below. |
Jeff Dyke, President of Sonic Automotive, commented, “Despite the short-term operational challenges associated with the CDK outage, our team remains dedicated to delivering an outstanding guest experience and executing our long-term strategic vision. Throughout the second quarter, we made great progress on our net 300 technician hiring initiative and continued to see improvement in our used vehicle business in both the Franchised Dealerships and EchoPark Segments. Given the used vehicle market's continued improvement, we maintain our guidance for positive quarterly EchoPark Segment adjusted EBITDA* for the remainder of 2024, which is expected to help mitigate the continuing effects of margin normalization in our Franchised Dealerships Segment on consolidated earnings potential.”
Heath Byrd, Chief Financial Officer of Sonic Automotive, added, “Our diversified cash flow streams continued to benefit our overall financial position in the second quarter, despite operational disruption from the CDK outage. As of June 30, 2024, we had $467 million in cash and floor plan deposits on hand, and approximately $885 million of total liquidity, before considering unencumbered real estate. We continue to maintain a conservative balance sheet approach, with the ability to deploy capital strategically as market conditions evolve.”
* Represents a non-GAAP financial measure - please refer to the discussion and reconciliation of non-GAAP financial measures below. |
To access the live webcast of the conference call, please go to ir.sonicautomotive.com and select the webcast link at the top of the page. For telephone access to this conference call, please dial (877) 407-8289 (domestic) or +1 (201) 689-8341 (international) and ask to be connected to the Sonic Automotive Second Quarter 2024 Earnings Conference Call. Dial-in access remains available throughout the live call; however, to ensure you are connected for the full call we suggest dialing in at least 10 minutes before the start of the call. A webcast replay will be available following the call for 14 days at ir.sonicautomotive.com.
Sonic Automotive, Inc. Results of Operations (Unaudited) | |||||||||||||||||||||
Results of Operations - Consolidated | |||||||||||||||||||||
| Three Months Ended June 30, |
| Better / (Worse) |
| Six Months Ended June 30, |
| Better / (Worse) | ||||||||||||||
|
| 2024 |
|
|
| 2023 |
|
| % Change |
|
| 2024 |
|
|
| 2023 |
|
| % Change | ||
| (In millions, except per share amounts) |
|
| ||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Retail new vehicles | $ | 1,552.6 |
|
| $ | 1,608.2 |
|
| (3 | )% |
| $ | 3,008.4 |
|
| $ | 3,051.0 |
|
| (1 | )% |
Fleet new vehicles |
| 26.2 |
|
|
| 28.3 |
|
| (7 | )% |
|
| 45.8 |
|
|
| 47.1 |
|
| (3 | )% |
Total new vehicles |
| 1,578.8 |
|
|
| 1,636.5 |
|
| (4 | )% |
|
| 3,054.2 |
|
|
| 3,098.1 |
|
| (1 | )% |
Used vehicles |
| 1,186.2 |
|
|
| 1,305.9 |
|
| (9 | )% |
|
| 2,401.8 |
|
|
| 2,650.8 |
|
| (9 | )% |
Wholesale vehicles |
| 71.3 |
|
|
| 91.5 |
|
| (22 | )% |
|
| 148.6 |
|
|
| 177.0 |
|
| (16 | )% |
Total vehicles |
| 2,836.3 |
|
|
| 3,033.9 |
|
| (7 | )% |
|
| 5,604.6 |
|
|
| 5,925.9 |
|
| (5 | )% |
Parts, service and collision repair |
| 444.1 |
|
|
| 443.7 |
|
| — | % |
|
| 890.8 |
|
|
| 874.2 |
|
| 2 | % |
Finance, insurance and other, net |
| 172.6 |
|
|
| 175.3 |
|
| (2 | )% |
|
| 341.6 |
|
|
| 344.0 |
|
| (1 | )% |
Total revenues |
| 3,453.0 |
|
|
| 3,652.9 |
|
| (5 | )% |
|
| 6,837.0 |
|
|
| 7,144.1 |
|
| (4 | )% |
Cost of sales: |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Retail new vehicles |
| (1,454.8 | ) |
|
| (1,466.8 | ) |
| 1 | % |
|
| (2,814.2 | ) |
|
| (2,771.5 | ) |
| (2 | )% |
Fleet new vehicles |
| (25.2 | ) |
|
| (27.0 | ) |
| 7 | % |
|
| (44.1 | ) |
|
| (45.0 | ) |
| 2 | % |
Total new vehicles |
| (1,480.0 | ) |
|
| (1,493.8 | ) |
| 1 | % |
|
| (2,858.3 | ) |
|
| (2,816.5 | ) |
| (1 | )% |
Used vehicles |
| (1,141.5 | ) |
|
| (1,274.4 | ) |
| 10 | % |
|
| (2,310.1 | ) |
|
| (2,589.3 | ) |
| 11 | % |
Wholesale vehicles |
| (71.9 | ) |
|
| (92.5 | ) |
| 22 | % |
|
| (149.9 | ) |
|
| (174.9 | ) |
| 14 | % |
Total vehicles |
| (2,693.4 | ) |
|
| (2,860.7 | ) |
| 6 | % |
|
| (5,318.3 | ) |
|
| (5,580.7 | ) |
| 5 | % |
Parts, service and collision repair |
| (220.5 | ) |
|
| (223.3 | ) |
| 1 | % |
|
| (443.4 | ) |
|
| (440.9 | ) |
| (1 | )% |
Total cost of sales |
| (2,913.9 | ) |
|
| (3,084.0 | ) |
| 6 | % |
|
| (5,761.7 | ) |
|
| (6,021.6 | ) |
| 4 | % |
Gross profit |
| 539.1 |
|
|
| 568.9 |
|
| (5 | )% |
|
| 1,075.3 |
|
|
| 1,122.5 |
|
| (4 | )% |
Selling, general and administrative expenses |
| (393.0 | ) |
|
| (391.9 | ) |
| — | % |
|
| (785.3 | ) |
|
| (804.7 | ) |
| 2 | % |
Impairment charges |
| (1.4 | ) |
|
| (62.6 | ) |
| NM |
|
|
| (2.4 | ) |
|
| (62.6 | ) |
| NM |
|
Depreciation and amortization |
| (37.0 | ) |
|
| (36.1 | ) |
| (2 | )% |
|
| (73.2 | ) |
|
| (70.5 | ) |
| (4 | )% |
Operating income (loss) |
| 107.7 |
|
|
| 78.3 |
|
| 38 | % |
|
| 214.4 |
|
|
| 184.7 |
|
| 16 | % |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Interest expense, floor plan |
| (22.2 | ) |
|
| (17.0 | ) |
| (31 | )% |
|
| (42.5 | ) |
|
| (31.5 | ) |
| (35 | )% |
Interest expense, other, net |
| (29.3 | ) |
|
| (28.9 | ) |
| (1 | )% |
|
| (58.3 | ) |
|
| (57.3 | ) |
| (2 | )% |
Other income (expense), net |
| (0.5 | ) |
|
| 0.1 |
|
| NM |
|
|
| (0.4 | ) |
|
| 0.2 |
|
| NM |
|
Total other income (expense) |
| (52.0 | ) |
|
| (45.8 | ) |
| (14 | )% |
|
| (101.2 | ) |
|
| (88.6 | ) |
| (14 | )% |
Income (loss) before taxes |
| 55.7 |
|
|
| 32.5 |
|
| 71 | % |
|
| 113.2 |
|
|
| 96.1 |
|
| 18 | % |
Provision for income taxes - benefit (expense) |
| (14.5 | ) |
|
| (9.1 | ) |
| (59 | )% |
|
| (30.0 | ) |
|
| (25.0 | ) |
| (20 | )% |
Net income (loss) | $ | 41.2 |
|
| $ | 23.4 |
|
| 76 | % |
| $ | 83.2 |
|
| $ | 71.1 |
|
| 17 | % |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Basic earnings (loss) per common share | $ | 1.21 |
|
| $ | 0.66 |
|
| 83 | % |
| $ | 2.45 |
|
| $ | 2.00 |
|
| 23 | % |
Basic weighted-average common shares outstanding |
| 34.0 |
|
|
| 35.3 |
|
| 4 | % |
|
| 34.0 |
|
|
| 35.6 |
|
| 4 | % |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Diluted earnings (loss) per common share | $ | 1.18 |
|
| $ | 0.65 |
|
| 82 | % |
| $ | 2.39 |
|
| $ | 1.95 |
|
| 23 | % |
Diluted weighted-average common shares outstanding |
| 34.9 |
|
|
| 36.0 |
|
| 3 | % |
|
| 34.8 |
|
|
| 36.5 |
|
| 5 | % |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Dividends declared per common share | $ | 0.30 |
|
| $ | 0.29 |
|
| 3 | % |
| $ | 0.60 |
|
| $ | 0.57 |
|
| 5 | % |
NM = Not Meaningful |
Franchised Dealerships Segment - Reported | |||||||||||||||||||||
| Three Months Ended June 30, |
| Better / (Worse) |
| Six Months Ended June 30, |
| Better / (Worse) | ||||||||||||||
|
| 2024 |
|
|
| 2023 |
|
| % Change |
|
| 2024 |
|
|
| 2023 |
|
| % Change | ||
| (In millions, except unit and per unit data) | ||||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Retail new vehicles | $ | 1,530.9 |
|
| $ | 1,583.3 |
|
| (3 | )% |
| $ | 2,970.8 |
|
| $ | 3,004.3 |
|
| (1 | )% |
Fleet new vehicles |
| 26.2 |
|
|
| 28.3 |
|
| (7 | )% |
|
| 45.8 |
|
|
| 47.1 |
|
| (3 | )% |
Total new vehicles |
| 1,557.1 |
|
|
| 1,611.6 |
|
| (3 | )% |
|
| 3,016.6 |
|
|
| 3,051.4 |
|
| (1 | )% |
Used vehicles |
| 732.1 |
|
|
| 774.5 |
|
| (5 | )% |
|
| 1,461.4 |
|
|
| 1,542.0 |
|
| (5 | )% |
Wholesale vehicles |
| 48.4 |
|
|
| 55.6 |
|
| (13 | )% |
|
| 96.9 |
|
|
| 114.0 |
|
| (15 | )% |
Total vehicles |
| 2,337.6 |
|
|
| 2,441.7 |
|
| (4 | )% |
|
| 4,574.9 |
|
|
| 4,707.4 |
|
| (3 | )% |
Parts, service and collision repair |
| 434.4 |
|
|
| 433.4 |
|
| — | % |
|
| 874.3 |
|
|
| 857.2 |
|
| 2 | % |
Finance, insurance and other, net |
| 124.2 |
|
|
| 132.2 |
|
| (6 | )% |
|
| 243.8 |
|
|
| 249.4 |
|
| (2 | )% |
Total revenues |
| 2,896.2 |
|
|
| 3,007.3 |
|
| (4 | )% |
|
| 5,693.0 |
|
|
| 5,814.0 |
|
| (2 | )% |
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Retail new vehicles |
| 94.9 |
|
|
| 136.9 |
|
| (31 | )% |
|
| 189.0 |
|
|
| 270.9 |
|
| (30 | )% |
Fleet new vehicles |
| 1.0 |
|
|
| 1.3 |
|
| (23 | )% |
|
| 1.7 |
|
|
| 2.1 |
|
| (19 | )% |
Total new vehicles |
| 95.9 |
|
|
| 138.2 |
|
| (31 | )% |
|
| 190.7 |
|
|
| 273.0 |
|
| (30 | )% |
Used vehicles |
| 38.7 |
|
|
| 44.5 |
|
| (13 | )% |
|
| 79.6 |
|
|
| 85.3 |
|
| (7 | )% |
Wholesale vehicles |
| (0.5 | ) |
|
| (1.0 | ) |
| 50 | % |
|
| (0.7 | ) |
|
| 1.0 |
|
| (170 | )% |
Total vehicles |
| 134.1 |
|
|
| 181.7 |
|
| (26 | )% |
|
| 269.6 |
|
|
| 359.3 |
|
| (25 | )% |
Parts, service and collision repair |
| 219.0 |
|
|
| 215.4 |
|
| 2 | % |
|
| 439.7 |
|
|
| 425.0 |
|
| 3 | % |
Finance, insurance and other, net |
| 124.2 |
|
|
| 132.2 |
|
| (6 | )% |
|
| 243.8 |
|
|
| 249.4 |
|
| (2 | )% |
Total gross profit |
| 477.3 |
|
|
| 529.3 |
|
| (10 | )% |
|
| 953.1 |
|
|
| 1,033.7 |
|
| (8 | )% |
Selling, general and administrative expenses |
| (347.9 | ) |
|
| (316.1 | ) |
| (10 | )% |
|
| (686.4 | ) |
|
| (647.3 | ) |
| (6 | )% |
Impairment charges |
| — |
|
|
| — |
|
| NM |
|
|
| (1.0 | ) |
|
| — |
|
| NM |
|
Depreciation and amortization |
| (30.4 | ) |
|
| (27.9 | ) |
| (9 | )% |
|
| (60.2 | ) |
|
| (54.5 | ) |
| (10 | )% |
Operating income (loss) |
| 99.0 |
|
|
| 185.3 |
|
| (47 | )% |
|
| 205.5 |
|
|
| 331.9 |
|
| (38 | )% |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Interest expense, floor plan |
| (18.0 | ) |
|
| (11.9 | ) |
| (51 | )% |
|
| (34.0 | ) |
|
| (21.8 | ) |
| (56 | )% |
Interest expense, other, net |
| (27.8 | ) |
|
| (27.5 | ) |
| (1 | )% |
|
| (55.6 | ) |
|
| (54.4 | ) |
| (2 | )% |
Other income (expense), net |
| (0.5 | ) |
|
| — |
|
| NM |
|
|
| (0.5 | ) |
|
| 0.1 |
|
| NM |
|
Total other income (expense) |
| (46.3 | ) |
|
| (39.4 | ) |
| (18 | )% |
|
| (90.1 | ) |
|
| (76.1 | ) |
| (18 | )% |
Income (loss) before taxes |
| 52.7 |
|
|
| 145.9 |
|
| (64 | )% |
|
| 115.4 |
|
|
| 255.8 |
|
| (55 | )% |
Add: Impairment charges |
| — |
|
|
| — |
|
| NM |
|
|
| 1.0 |
|
|
| — |
|
| NM |
|
Segment income (loss) | $ | 52.7 |
|
| $ | 145.9 |
|
| (64 | )% |
| $ | 116.4 |
|
| $ | 255.8 |
|
| (54 | )% |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Unit Sales Volume: |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Retail new vehicles |
| 26,512 |
|
|
| 27,358 |
|
| (3 | )% |
|
| 51,809 |
|
|
| 51,897 |
|
| — | % |
Fleet new vehicles |
| 514 |
|
|
| 590 |
|
| (13 | )% |
|
| 893 |
|
|
| 1,031 |
|
| (13 | )% |
Total new vehicles |
| 27,026 |
|
|
| 27,948 |
|
| (3 | )% |
|
| 52,702 |
|
|
| 52,928 |
|
| — | % |
Used vehicles |
| 25,668 |
|
|
| 25,197 |
|
| 2 | % |
|
| 51,334 |
|
|
| 50,304 |
|
| 2 | % |
Wholesale vehicles |
| 5,248 |
|
|
| 5,516 |
|
| (5 | )% |
|
| 10,353 |
|
|
| 10,999 |
|
| (6 | )% |
Retail new & used vehicles |
| 52,180 |
|
|
| 52,555 |
|
| (1 | )% |
|
| 103,143 |
|
|
| 102,201 |
|
| 1 | % |
Used-to-New Ratio |
| 0.97 |
|
|
| 0.92 |
|
| 5 | % |
|
| 0.99 |
|
|
| 0.97 |
|
| 2 | % |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Gross Profit Per Unit: |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Retail new vehicles | $ | 3,579 |
|
| $ | 5,003 |
|
| (28 | )% |
| $ | 3,649 |
|
| $ | 5,221 |
|
| (30 | )% |
Fleet new vehicles | $ | 1,885 |
|
| $ | 2,099 |
|
| (10 | )% |
| $ | 1,809 |
|
| $ | 2,065 |
|
| (12 | )% |
New vehicles | $ | 3,547 |
|
| $ | 4,942 |
|
| (28 | )% |
| $ | 3,618 |
|
| $ | 5,159 |
|
| (30 | )% |
Used vehicles | $ | 1,508 |
|
| $ | 1,765 |
|
| (15 | )% |
| $ | 1,550 |
|
| $ | 1,695 |
|
| (9 | )% |
Finance, insurance and other, net | $ | 2,380 |
|
| $ | 2,516 |
|
| (5 | )% |
| $ | 2,364 |
|
| $ | 2,440 |
|
| (3 | )% |
NM = Not Meaningful |
Note: Reported Franchised Dealerships Segment results include (i) same store results from the “Franchised Dealerships Segment - Same Store” table below and (ii) the effects of acquisitions, open points, dispositions and holding company impacts for the periods reported. All currently operating franchised dealership stores are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition. |
Franchised Dealerships Segment - Same Store | ||||||||||||||||||||
| Three Months Ended June 30, |
| Better / (Worse) |
| Six Months Ended June 30, |
| Better / (Worse) | |||||||||||||
|
| 2024 |
|
|
| 2023 |
|
| % Change |
|
| 2024 |
|
| 2023 |
| % Change | |||
| (In millions, except unit and per unit data) | |||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
| |||||||||
Retail new vehicles | $ | 1,530.6 |
|
| $ | 1,566.5 |
|
| (2 | )% |
| $ | 2,964.6 |
|
| $ | 2,964.3 |
| — | % |
Fleet new vehicles |
| 26.2 |
|
|
| 28.4 |
|
| (8 | )% |
|
| 45.8 |
|
|
| 47.2 |
| (3 | )% |
Total new vehicles |
| 1,556.8 |
|
|
| 1,594.9 |
|
| (2 | )% |
|
| 3,010.4 |
|
|
| 3,011.5 |
| — | % |
Used vehicles |
| 731.9 |
|
|
| 766.2 |
|
| (4 | )% |
|
| 1,457.0 |
|
|
| 1,519.8 |
| (4 | )% |
Wholesale vehicles |
| 48.3 |
|
|
| 54.7 |
|
| (12 | )% |
|
| 96.5 |
|
|
| 112.1 |
| (14 | )% |
Total vehicles |
| 2,337.0 |
|
|
| 2,415.8 |
|
| (3 | )% |
|
| 4,563.9 |
|
|
| 4,643.4 |
| (2 | )% |
Parts, service and collision repair |
| 434.3 |
|
|
| 430.0 |
|
| 1 | % |
|
| 872.6 |
|
|
| 847.5 |
| 3 | % |
Finance, insurance and other, net |
| 124.2 |
|
|
| 130.9 |
|
| (5 | )% |
|
| 243.4 |
|
|
| 246.2 |
| (1 | )% |
Total revenues |
| 2,895.5 |
|
|
| 2,976.7 |
|
| (3 | )% |
|
| 5,679.9 |
|
|
| 5,737.1 |
| (1 | )% |
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
| |||||||||
Retail new vehicles |
| 95.1 |
|
|
| 135.7 |
|
| (30 | )% |
|
| 188.8 |
|
|
| 267.8 |
| (29 | )% |
Fleet new vehicles |
| 1.0 |
|
|
| 1.2 |
|
| (17 | )% |
|
| 1.6 |
|
|
| 2.1 |
| (24 | )% |
Total new vehicles |
| 96.1 |
|
|
| 136.9 |
|
| (30 | )% |
|
| 190.4 |
|
|
| 269.9 |
| (29 | )% |
Used vehicles |
| 39.1 |
|
|
| 44.3 |
|
| (12 | )% |
|
| 79.6 |
|
|
| 84.3 |
| (6 | )% |
Wholesale vehicles |
| (0.5 | ) |
|
| (0.5 | ) |
| — | % |
|
| (0.6 | ) |
|
| 1.4 |
| (143 | )% |
Total vehicles |
| 134.7 |
|
|
| 180.7 |
|
| (25 | )% |
|
| 269.4 |
|
|
| 355.6 |
| (24 | )% |
Parts, service and collision repair |
| 218.8 |
|
|
| 213.5 |
|
| 2 | % |
|
| 438.2 |
|
|
| 419.6 |
| 4 | % |
Finance, insurance and other, net |
| 124.2 |
|
|
| 130.9 |
|
| (5 | )% |
|
| 243.4 |
|
|
| 246.2 |
| (1 | )% |
Total gross profit | $ | 477.7 |
|
| $ | 525.1 |
|
| (9 | )% |
| $ | 951.0 |
|
| $ | 1,021.4 |
| (7 | )% |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Unit Sales Volume: |
|
|
|
|
|
|
|
|
|
|
| |||||||||
Retail new vehicles |
| 26,505 |
|
|
| 26,953 |
|
| (2 | )% |
|
| 51,688 |
|
|
| 50,975 |
| 1 | % |
Fleet new vehicles |
| 514 |
|
|
| 590 |
|
| (13 | )% |
|
| 893 |
|
|
| 1,031 |
| (13 | )% |
Total new vehicles |
| 27,019 |
|
|
| 27,543 |
|
| (2 | )% |
|
| 52,581 |
|
|
| 52,006 |
| 1 | % |
Used vehicles |
| 25,660 |
|
|
| 24,873 |
|
| 3 | % |
|
| 51,169 |
|
|
| 49,454 |
| 3 | % |
Wholesale vehicles |
| 5,243 |
|
|
| 5,430 |
|
| (3 | )% |
|
| 10,317 |
|
|
| 10,812 |
| (5 | )% |
Retail new & used vehicles |
| 52,165 |
|
|
| 51,826 |
|
| 1 | % |
|
| 102,857 |
|
|
| 100,429 |
| 2 | % |
Used-to-New Ratio |
| 0.97 |
|
|
| 0.90 |
|
| 8 | % |
|
| 0.99 |
|
|
| 0.95 |
| 4 | % |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Gross Profit Per Unit: |
|
|
|
|
|
|
|
|
|
|
| |||||||||
Retail new vehicles | $ | 3,590 |
|
| $ | 5,033 |
|
| (29 | )% |
| $ | 3,653 |
|
| $ | 5,254 |
| (30 | )% |
Fleet new vehicles | $ | 1,885 |
|
| $ | 2,099 |
|
| (10 | )% |
| $ | 1,809 |
|
| $ | 2,065 |
| (12 | )% |
New vehicles | $ | 3,557 |
|
| $ | 4,970 |
|
| (28 | )% |
| $ | 3,622 |
|
| $ | 5,191 |
| (30 | )% |
Used vehicles | $ | 1,524 |
|
| $ | 1,779 |
|
| (14 | )% |
| $ | 1,555 |
|
| $ | 1,705 |
| (9 | )% |
Finance, insurance and other, net | $ | 2,380 |
|
| $ | 2,526 |
|
| (6 | )% |
| $ | 2,366 |
|
| $ | 2,451 |
| (3 | )% |
Note: All currently operating franchised dealership stores are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition. |
EchoPark Segment - Reported | |||||||||||||||||||||
| Three Months Ended June 30, |
| Better / (Worse) |
| Six Months Ended June 30, |
| Better / (Worse) | ||||||||||||||
|
| 2024 |
|
|
| 2023 |
|
| % Change |
|
| 2024 |
|
|
| 2023 |
|
| % Change | ||
| (In millions, except unit and per unit data) | ||||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Retail new vehicles | $ | — |
|
| $ | — |
|
| — | % |
| $ | — |
|
| $ | 1.0 |
|
| (100 | )% |
Used vehicles |
| 448.9 |
|
|
| 524.0 |
|
| (14 | )% |
|
| 931.7 |
|
|
| 1,096.5 |
|
| (15 | )% |
Wholesale vehicles |
| 21.9 |
|
|
| 35.5 |
|
| (38 | )% |
|
| 50.7 |
|
|
| 62.5 |
|
| (19 | )% |
Total vehicles |
| 470.8 |
|
|
| 559.5 |
|
| (16 | )% |
|
| 982.4 |
|
|
| 1,160.0 |
|
| (15 | )% |
Finance, insurance and other, net |
| 46.5 |
|
|
| 41.1 |
|
| 13 | % |
|
| 94.3 |
|
|
| 91.1 |
|
| 4 | % |
Total revenues |
| 517.3 |
|
|
| 600.6 |
|
| (14 | )% |
|
| 1,076.7 |
|
|
| 1,251.1 |
|
| (14 | )% |
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Retail new vehicles |
| — |
|
|
| — |
|
| — | % |
|
| — |
|
|
| 0.1 |
|
| (100 | )% |
Used vehicles |
| 4.7 |
|
|
| (14.3 | ) |
| 133 | % |
|
| 10.0 |
|
|
| (26.2 | ) |
| 138 | % |
Wholesale vehicles |
| (0.1 | ) |
|
| — |
|
| (100 | )% |
|
| (0.6 | ) |
|
| 1.2 |
|
| (150 | )% |
Total vehicles |
| 4.6 |
|
|
| (14.3 | ) |
| 132 | % |
|
| 9.4 |
|
|
| (24.9 | ) |
| 138 | % |
Finance, insurance and other, net |
| 46.5 |
|
|
| 41.1 |
|
| 13 | % |
|
| 94.3 |
|
|
| 91.1 |
|
| 4 | % |
Total gross profit |
| 51.1 |
|
|
| 26.8 |
|
| 91 | % |
|
| 103.7 |
|
|
| 66.2 |
|
| 57 | % |
Selling, general and administrative expenses |
| (37.2 | ) |
|
| (66.6 | ) |
| 44 | % |
|
| (82.8 | ) |
|
| (140.4 | ) |
| 41 | % |
Impairment charges |
| (1.4 | ) |
|
| (62.6 | ) |
| NM |
|
|
| (1.4 | ) |
|
| (62.6 | ) |
| NM |
|
Depreciation and amortization |
| (5.6 | ) |
|
| (7.4 | ) |
| 24 | % |
|
| (11.1 | ) |
|
| (14.4 | ) |
| 23 | % |
Operating income (loss) |
| 6.9 |
|
|
| (109.8 | ) |
| 106 | % |
|
| 8.4 |
|
|
| (151.2 | ) |
| 106 | % |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Interest expense, floor plan |
| (3.8 | ) |
|
| (4.8 | ) |
| 21 | % |
|
| (7.6 | ) |
|
| (9.3 | ) |
| 18 | % |
Interest expense, other, net |
| (0.7 | ) |
|
| (0.9 | ) |
| 22 | % |
|
| (1.3 | ) |
|
| (1.8 | ) |
| 28 | % |
Other income (expense), net |
| 0.1 |
|
|
| 0.1 |
|
| NM |
|
|
| — |
|
|
| — |
|
| NM |
|
Total other income (expense) |
| 4.4 |
|
|
| (5.6 | ) |
| 179 | % |
|
| 8.9 |
|
|
| (11.1 | ) |
| 180 | % |
Income (loss) before taxes |
| 2.5 |
|
|
| (115.4 | ) |
| 102 | % |
|
| (0.5 | ) |
|
| (162.3 | ) |
| 100 | % |
Add: Impairment charges |
| 1.4 |
|
|
| 62.6 |
|
| NM |
|
|
| 1.4 |
|
|
| 62.6 |
|
| NM |
|
Segment income (loss) | $ | 3.9 |
|
| $ | (52.8 | ) |
| 107 | % |
| $ | 0.9 |
|
| $ | (99.7 | ) |
| 101 | % |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Unit Sales Volume: |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Retail new vehicles |
| — |
|
|
| — |
|
| — | % |
|
| — |
|
|
| 11 |
|
| (100 | )% |
Used vehicles |
| 16,641 |
|
|
| 17,084 |
|
| (3 | )% |
|
| 34,622 |
|
|
| 37,064 |
|
| (7 | )% |
Wholesale vehicles |
| 2,593 |
|
|
| 3,235 |
|
| (20 | )% |
|
| 5,587 |
|
|
| 6,151 |
|
| (9 | )% |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Gross Profit Per Unit: |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total used vehicle and F&I | $ | 3,078 |
|
| $ | 1,569 |
|
| 96 | % |
| $ | 3,014 |
|
| $ | 1,750 |
|
| 72 | % |
NM = Not Meaningful |
EchoPark Segment - Same Market | ||||||||||||||||||||
| Three Months Ended June 30, |
| Better / (Worse) |
| Six Months Ended June 30, |
| Better / (Worse) | |||||||||||||
|
| 2024 |
|
|
| 2023 |
|
| % Change |
| 2024 |
|
| 2023 |
|
| % Change | |||
| (In millions, except unit and per unit data) | |||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
| |||||||||
Used vehicles | $ | 448.9 |
|
| $ | 410.0 |
|
| 9 | % |
| $ | 922.1 |
| $ | 843.7 |
|
| 9 | % |
Wholesale vehicles |
| 21.9 |
|
|
| 26.3 |
|
| (17 | )% |
|
| 47.4 |
|
| 44.2 |
|
| 7 | % |
Total vehicles |
| 470.8 |
|
|
| 436.3 |
|
| 8 | % |
|
| 969.5 |
|
| 887.9 |
|
| 9 | % |
Finance, insurance and other, net |
| 47.3 |
|
|
| 32.6 |
|
| 45 | % |
|
| 94.8 |
|
| 70.9 |
|
| 34 | % |
Total revenues |
| 518.1 |
|
|
| 468.9 |
|
| 10 | % |
|
| 1,064.3 |
|
| 958.8 |
|
| 11 | % |
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
| |||||||||
Used vehicles |
| 4.8 |
|
|
| (4.3 | ) |
| 212 | % |
|
| 10.4 |
|
| (14.1 | ) |
| 174 | % |
Wholesale vehicles |
| (0.2 | ) |
|
| 0.4 |
|
| (150 | )% |
|
| — |
|
| 1.6 |
|
| (100 | )% |
Total vehicles |
| 4.6 |
|
|
| (3.9 | ) |
| 218 | % |
|
| 10.4 |
|
| (12.5 | ) |
| 183 | % |
Finance, insurance and other, net |
| 47.3 |
|
|
| 32.6 |
|
| 45 | % |
|
| 94.8 |
|
| 70.9 |
|
| 34 | % |
Total gross profit | $ | 51.9 |
|
| $ | 28.7 |
|
| 81 | % |
| $ | 105.2 |
| $ | 58.4 |
|
| 80 | % |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Unit Sales Volume: |
|
|
|
|
|
|
|
|
|
|
| |||||||||
Used vehicles |
| 16,641 |
|
|
| 13,529 |
|
| 23 | % |
|
| 34,259 |
|
| 29,080 |
|
| 18 | % |
Wholesale vehicles |
| 2,593 |
|
|
| 2,402 |
|
| 8 | % |
|
| 5,378 |
|
| 4,521 |
|
| 19 | % |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Gross Profit Per Unit: |
|
|
|
|
|
|
|
|
|
|
| |||||||||
Total used vehicle and F&I | $ | 3,127 |
|
| $ | 2,091 |
|
| 50 | % |
| $ | 3,071 |
| $ | 1,953 |
|
| 57 | % |
Note: All currently operating EchoPark stores in a local geographic market are included within the same market group as of the first full month following the first anniversary of the market's opening. |
Powersports Segment - Reported | |||||||||||||||||||||
| Three Months Ended June 30, |
| Better / (Worse) |
| Six Months Ended June 30, |
| Better / (Worse) | ||||||||||||||
|
| 2024 |
|
|
| 2023 |
|
| % Change |
|
| 2024 |
|
|
| 2023 |
|
| % Change | ||
| (In millions, except unit and per unit data) | ||||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Retail new vehicles | $ | 21.7 |
|
| $ | 24.9 |
|
| (13 | )% |
| $ | 37.5 |
|
| $ | 45.7 |
|
| (18 | )% |
Used vehicles |
| 5.3 |
|
|
| 7.4 |
|
| (28 | )% |
|
| 8.7 |
|
|
| 12.3 |
|
| (29 | )% |
Wholesale vehicles |
| 0.9 |
|
|
| 0.4 |
|
| 125 | % |
|
| 1.1 |
|
|
| 0.5 |
|
| 120 | % |
Total vehicles |
| 27.9 |
|
|
| 32.7 |
|
| (15 | )% |
|
| 47.3 |
|
|
| 58.5 |
|
| (19 | )% |
Parts, service and collision repair |
| 9.7 |
|
|
| 10.3 |
|
| (6 | )% |
|
| 16.5 |
|
|
| 17.0 |
|
| (3 | )% |
Finance, insurance and other, net |
| 2.0 |
|
|
| 2.0 |
|
| — | % |
|
| 3.5 |
|
|
| 3.5 |
|
| — | % |
Total revenues |
| 39.6 |
|
|
| 45.0 |
|
| (12 | )% |
|
| 67.3 |
|
|
| 79.0 |
|
| (15 | )% |
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Retail new vehicles |
| 2.9 |
|
|
| 4.5 |
|
| (36 | )% |
|
| 5.2 |
|
|
| 8.5 |
|
| (39 | )% |
Used vehicles |
| 1.3 |
|
|
| 1.3 |
|
| — | % |
|
| 2.2 |
|
|
| 2.4 |
|
| (8 | )% |
Wholesale vehicles |
| (0.1 | ) |
|
| — |
|
| (100 | )% |
|
| (0.1 | ) |
|
| (0.1 | ) |
| — | % |
Total vehicles |
| 4.1 |
|
|
| 5.8 |
|
| (29 | )% |
|
| 7.3 |
|
|
| 10.8 |
|
| (32 | )% |
Parts, service and collision repair |
| 4.6 |
|
|
| 5.0 |
|
| (8 | )% |
|
| 7.7 |
|
|
| 8.3 |
|
| (7 | )% |
Finance, insurance and other, net |
| 2.0 |
|
|
| 2.0 |
|
| — | % |
|
| 3.5 |
|
|
| 3.5 |
|
| — | % |
Total gross profit |
| 10.7 |
|
|
| 12.8 |
|
| (16 | )% |
|
| 18.5 |
|
|
| 22.6 |
|
| (18 | )% |
Selling, general and administrative expenses |
| (7.9 | ) |
|
| (9.2 | ) |
| 14 | % |
|
| (16.0 | ) |
|
| (17.0 | ) |
| 6 | % |
Depreciation and amortization |
| (1.0 | ) |
|
| (0.8 | ) |
| (25 | )% |
|
| (2.0 | ) |
|
| (1.6 | ) |
| (25 | )% |
Operating income (loss) |
| 1.8 |
|
|
| 2.8 |
|
| (36 | )% |
|
| 0.5 |
|
|
| 4.0 |
|
| (88 | )% |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Interest expense, floor plan |
| (0.5 | ) |
|
| (0.3 | ) |
| (67 | )% |
|
| (1.0 | ) |
|
| (0.4 | ) |
| (150 | )% |
Interest expense, other, net |
| (0.8 | ) |
|
| (0.5 | ) |
| (60 | )% |
|
| (1.3 | ) |
|
| (1.1 | ) |
| (18 | )% |
Other income (expense), net |
| — |
|
|
| — |
|
| NM |
|
|
| 0.1 |
|
|
| 0.1 |
|
| NM |
|
Total other income (expense) |
| (1.3 | ) |
|
| (0.8 | ) |
| (63 | )% |
|
| (2.2 | ) |
|
| (1.4 | ) |
| (57 | )% |
Income (loss) before taxes |
| 0.5 |
|
|
| 2.0 |
|
| (75 | )% |
|
| (1.7 | ) |
|
| 2.6 |
|
| (165 | )% |
Add: Impairment charges |
| — |
|
|
| — |
|
| NM |
|
|
| — |
|
|
| — |
|
| NM |
|
Segment income (loss) | $ | 0.5 |
|
| $ | 2.0 |
|
| (75 | )% |
| $ | (1.7 | ) |
| $ | 2.6 |
|
| (165 | )% |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Unit Sales Volume: |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Retail new vehicles |
| 1,193 |
|
|
| 1,396 |
|
| (15 | )% |
|
| 2,038 |
|
|
| 2,503 |
|
| (19 | )% |
Used vehicles |
| 522 |
|
|
| 691 |
|
| (24 | )% |
|
| 931 |
|
|
| 1,135 |
|
| (18 | )% |
Wholesale vehicles |
| 18 |
|
|
| 50 |
|
| (64 | )% |
|
| 31 |
|
|
| 57 |
|
| (46 | )% |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Gross Profit Per Unit: |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Retail new vehicles | $ | 2,466 |
|
| $ | 3,235 |
|
| (24 | )% |
| $ | 2,553 |
|
| $ | 3,385 |
|
| (25 | )% |
Used vehicles | $ | 2,423 |
|
| $ | 1,942 |
|
| 25 | % |
| $ | 2,318 |
|
| $ | 2,093 |
|
| 11 | % |
Finance, insurance and other, net | $ | 1,153 |
|
| $ | 952 |
|
| 21 | % |
| $ | 1,172 |
|
| $ | 964 |
|
| 22 | % |
NM = Not Meaningful |
Powersports Segment - Same Store | ||||||||||||||||||||
| Three Months Ended June 30, |
| Better / (Worse) |
| Six Months Ended June 30, |
| Better / (Worse) | |||||||||||||
|
| 2024 |
|
| 2023 |
| % Change |
|
| 2024 |
|
|
| 2023 |
|
| % Change | |||
| (In millions, except unit and per unit data) | |||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
| |||||||||
Retail new vehicles | $ | 21.7 |
|
| $ | 24.9 |
| (13 | )% |
| $ | 37.0 |
|
| $ | 45.5 |
|
| (19 | )% |
Used vehicles |
| 5.3 |
|
|
| 7.4 |
| (28 | )% |
|
| 8.0 |
|
|
| 11.8 |
|
| (32 | )% |
Wholesale vehicles |
| 0.9 |
|
|
| 0.4 |
| 125 | % |
|
| 1.2 |
|
|
| 0.5 |
|
| 140 | % |
Total vehicles |
| 27.9 |
|
|
| 32.7 |
| (15 | )% |
|
| 46.2 |
|
|
| 57.8 |