Sonic Automotive Reports Fourth Quarter and Full Year Financial Results
Full Year 2023 Results Include All-Time Record Annual Revenues of
EchoPark Segment Expected to Achieve Breakeven Adjusted EBITDA* in the First Quarter of 2024
Fourth Quarter 2023 Financial Summary
-
Total revenues of
$3.6 billion , flat year-over-year; total gross profit of$541.1 million , down 6% year-over-year -
Reported net income of
$38.7 million ($1.11 earnings per diluted share)-
Reported fourth quarter net income includes the effect of a
$16.7 million pre-tax charge related to non-cash impairment charges (partially offset by a$4.3 million tax benefit on above charges), and a one-time income tax charge of$5.8 million related to certain non-deductible tax items -
Excluding these items, adjusted fourth quarter net income* was
$56.9 million ($1.63 adjusted earnings per diluted share*)
-
Reported fourth quarter net income includes the effect of a
- Total selling, general and administrative (“SG&A”) expenses as a percentage of gross profit of 71.4% (67.0% on a Franchised Dealerships Segment basis)
-
Franchised Dealerships Segment revenues of
$3.0 billion , up 1% year-over-year; Franchised Dealerships Segment gross profit of$491.4 million , down 7% year-over-year -
EchoPark Segment revenues of
$556.6 million , down 6% year-over-year; EchoPark Segment gross profit of$42.8 million , up 5% year-over-year; EchoPark Segment retail used vehicle unit sales volume of 17,562 units, up 1% year-over-year -
EchoPark Segment loss (defined as loss before taxes and impairment charges) of
$15.9 million ; EchoPark Segment adjusted EBITDA* loss of$9.1 million , a 64% improvement year-over-year- Expect to achieve breakeven EchoPark Segment adjusted EBITDA* in the first quarter of 2024
-
Fourth quarter EchoPark Segment adjusted EBITDA* loss includes: a
$0.9 million loss recognized in the fourth quarter related to stores closed prior to the fourth quarter; and a$1.3 million loss related to the Northwest Motorsport stores closed after the end of the fourth quarter inJanuary 2024
Full Year 2023 Financial Summary
-
All-time record annual revenues of
$14.4 billion , up 3% year-over-year; gross profit of$2.2 billion , down 3% year-over-year -
Reported full year net income of
$178.2 million ($4.97 earnings per diluted share)-
Reported net income includes the effect of a
$79.3 million pre-tax charge related to non-cash impairment charges and a$10.0 million pre-tax charge to gross profit related to inventory valuation adjustments, offset partially by a net$9.3 million pre-tax gain in SG&A expenses (collectively, these items are partially offset by a$19.9 million tax benefit on the above net charges), and a one-time income tax charge of$5.8 million related to certain non-deductible tax items -
Excluding these items, adjusted net income* was
$244.1 million ($6.81 adjusted earnings per diluted share*)
-
Reported net income includes the effect of a
-
Total SG&A expenses as a percentage of gross profit of 71.3% (64.6% on a Franchised Dealerships Segment basis)
- Adjusted SG&A expenses as a percentage of gross profit* of 71.4% (65.6% on a Franchised Dealerships Segment basis)
-
Franchised Dealerships Segment revenues of
$11.8 billion , up 3% year-over-year; Franchised Dealerships Segment gross profit of$2.0 billion , down 4% year-over-year -
EchoPark Segment revenues of
$2.4 billion , down 1% year-over-year; EchoPark Segment gross profit of$161.8 million , down 8% year-over-year; EchoPark Segment retail used vehicle unit sales volume of 73,676 units, up 15% year-over-year -
Reported EchoPark Segment loss (defined as loss before taxes and impairment charges) of
$132.4 million ; adjusted EchoPark Segment loss* of$112.8 million ; EchoPark Segment adjusted EBITDA* loss of$83.0 million , a 21% improvement year-over-year-
Full year EchoPark Segment adjusted EBITDA* loss includes: a
$35.3 million loss related to stores closed during 2023; and a$5.1 million loss related to the Northwest Motorsport stores closed after the end of the fiscal year inJanuary 2024
-
Full year EchoPark Segment adjusted EBITDA* loss includes: a
-
During 2023, Sonic repurchased approximately 3.3 million shares of its Class A Common Stock, or 9% of shares outstanding at
December 31, 2022 , for an aggregate purchase price of approximately$177.6 million
* Please refer to the discussion and reconciliation of Non-GAAP Financial Measures below.
Commentary
Fourth Quarter 2023 Segment Highlights
The financial measures discussed below are results for the fourth quarter of 2023 with comparisons made to the fourth quarter of 2022, unless otherwise noted.
-
Franchised Dealerships Segment operating results include:
- Same store revenues up 2%; same store gross profit down 6%
-
Same store retail new vehicle unit sales volume up 10%; same store retail new vehicle gross profit per unit down 30%, to
$4,279 -
Same store retail used vehicle unit sales volume down 7%; same store retail used vehicle gross profit per unit down 1%, to
$1,433 - Same store parts, service and collision repair (“Fixed Operations”) gross profit up 7%; same store customer pay gross profit up 9%; same store warranty gross profit up 6%; same store Fixed Operations gross margin up 30 basis points, to 49.9%
-
Same store finance and insurance ("F&I") gross profit down 1%; same store F&I gross profit per retail unit of
$2,334 , down 3% - On a trailing quarter cost of sales basis, the Franchised Dealerships Segment had 37 days’ supply of new vehicle inventory (including in-transit) and 29 days’ supply of used vehicle inventory
-
EchoPark Segment operating results include:
-
Revenues of
$556.6 million , down 6% year-over-year; gross profit of$42.8 million , up 5% year-over-year - Retail used vehicle unit sales volume of 17,562, up 1% year-over-year
-
Segment loss of
$15.9 million and adjusted EBITDA* loss of$9.1 million -
EchoPark Segment stores closed prior to the fourth quarter incurred a
$1.1 million segment loss and a$0.9 million adjusted EBITDA* loss during the fourth quarter, respectively -
Northwest Motorsport stores closed after the end of the fourth quarter in
January 2024 incurred a$1.8 million segment loss and a$1.3 million adjusted EBITDA* loss, respectively, in the fourth quarter
-
EchoPark Segment stores closed prior to the fourth quarter incurred a
- On a trailing quarter cost of sales basis, the EchoPark Segment had 36 days’ supply of used vehicle inventory
-
Revenues of
-
Powersports Segment operating results include:
-
Revenues of
$27.2 million , gross profit of$7.0 million , gross margin of 25.6% -
Segment loss of
$3.5 million and adjusted EBITDA* loss of$2.4 million
-
Revenues of
* Please refer to the discussion and reconciliation of Non-GAAP Financial Measures below.
Full Year 2023 Segment Highlights
The financial measures discussed below are results for the full year 2023 with comparisons made to the full year 2022, unless otherwise noted.
-
Franchised Dealerships Segment operating results include:
- Same store revenues up 3%; same store gross profit down 4%
-
Same store retail new vehicle unit sales volume up 8%; same store retail new vehicle gross profit per unit down 27%, to
$4,849 -
Same store retail used vehicle unit sales volume down 7%; same store retail used vehicle gross profit per unit up 1%, to
$1,630 - Same store Fixed Operations gross profit up 9%; same store customer pay gross profit up 11%; same store warranty gross profit up 7%; same store Fixed Operations gross margin up 10 basis points, to 49.6%
-
Same store F&I gross profit flat year-over-year; same store F&I gross profit per retail unit of
$2,411 , flat year-over-year
-
EchoPark Segment operating results include:
-
Revenues of
$2.4 billion , down 1% year-over-year; gross profit of$161.8 million , down 8% year-over-year - Retail used vehicle unit sales volume of 73,676, up 15% year-over-year
-
Reported segment loss of
$132.5 million , adjusted segment loss* of$112.8 million , and adjusted EBITDA* loss of$83.0 million -
EchoPark Segment stores closed during 2023 incurred a
$30.3 million reported segment loss and a$35.3 million adjusted EBITDA* loss during the fiscal year, respectively -
Northwest Motorsport stores closed after the end of the fiscal year in
January 2024 incurred a$6.7 million segment loss and a$5.1 million adjusted EBITDA* loss, respectively, for the full year
-
EchoPark Segment stores closed during 2023 incurred a
-
Revenues of
-
Powersports Segment operating results include:
-
Revenues of
$163.2 million , gross profit of$50.3 million , gross margin of 30.9% -
Segment income of
$5.7 million and adjusted EBITDA* of$10.8 million -
Year-over-year comparative financial results are not meaningful due to the timing of acquisitions (seven stores acquired in
August 2022 and five stores acquired inFebruary 2023 )
-
Revenues of
* 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
Fourth Quarter 2023 Earnings Conference Call
Senior management will hold a conference call today at
To access the live webcast of the conference call, please go to ir.sonicautomotive.com and select the webcast link at the top of the page. For telephone access to this conference call, please dial (877) 407-8289 (domestic) or +1 (201) 689-8341 (international) and ask to be connected to the Sonic Automotive Fourth Quarter 2023 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
About
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
Non-GAAP Financial Measures
This press release and the attached financial tables contain certain non-GAAP financial measures as defined under
Results of Operations (Unaudited) |
|||||||||||||||||||||
Results of Operations - Consolidated |
|||||||||||||||||||||
|
Three Months Ended |
|
Better / (Worse) |
|
Twelve Months Ended |
|
Better / (Worse) |
||||||||||||||
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||||||
|
(In millions, except per share amounts) |
|
|
||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
$ |
1,680.2 |
|
|
$ |
1,555.3 |
|
|
8 |
% |
|
$ |
6,304.6 |
|
|
$ |
5,622.6 |
|
|
12 |
% |
Fleet new vehicles |
|
21.8 |
|
|
|
29.3 |
|
|
(26 |
)% |
|
|
92.2 |
|
|
|
99.4 |
|
|
(7 |
)% |
Total new vehicles |
|
1,702.0 |
|
|
|
1,584.6 |
|
|
7 |
% |
|
|
6,396.8 |
|
|
|
5,722.0 |
|
|
12 |
% |
Used vehicles |
|
1,222.4 |
|
|
|
1,341.1 |
|
|
(9 |
)% |
|
|
5,213.6 |
|
|
|
5,515.4 |
|
|
(5 |
)% |
Wholesale vehicles |
|
62.6 |
|
|
|
80.0 |
|
|
(22 |
)% |
|
|
318.8 |
|
|
|
484.9 |
|
|
(34 |
)% |
Total vehicles |
|
2,987.0 |
|
|
|
3,005.7 |
|
|
(1 |
)% |
|
|
11,929.2 |
|
|
|
11,722.3 |
|
|
2 |
% |
Parts, service and collision repair |
|
431.9 |
|
|
|
411.1 |
|
|
5 |
% |
|
|
1,759.5 |
|
|
|
1,599.7 |
|
|
10 |
% |
Finance, insurance and other, net |
|
166.0 |
|
|
|
173.8 |
|
|
(4 |
)% |
|
|
683.7 |
|
|
|
679.1 |
|
|
1 |
% |
Total revenues |
|
3,584.9 |
|
|
|
3,590.6 |
|
|
— |
% |
|
|
14,372.4 |
|
|
|
14,001.1 |
|
|
3 |
% |
Cost of sales: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
(1,555.7 |
) |
|
|
(1,390.7 |
) |
|
(12 |
)% |
|
|
(5,769.2 |
) |
|
|
(4,959.8 |
) |
|
(16 |
)% |
Fleet new vehicles |
|
(20.9 |
) |
|
|
(27.5 |
) |
|
24 |
% |
|
|
(88.2 |
) |
|
|
(94.5 |
) |
|
7 |
% |
Total new vehicles |
|
(1,576.6 |
) |
|
|
(1,418.2 |
) |
|
(11 |
)% |
|
|
(5,857.4 |
) |
|
|
(5,054.3 |
) |
|
(16 |
)% |
Used vehicles |
|
(1,184.9 |
) |
|
|
(1,305.6 |
) |
|
9 |
% |
|
|
(5,062.4 |
) |
|
|
(5,334.6 |
) |
|
5 |
% |
Wholesale vehicles |
|
(65.8 |
) |
|
|
(83.7 |
) |
|
21 |
% |
|
|
(321.4 |
) |
|
|
(488.0 |
) |
|
34 |
% |
Total vehicles |
|
(2,827.3 |
) |
|
|
(2,807.5 |
) |
|
(1 |
)% |
|
|
(11,241.2 |
) |
|
|
(10,876.9 |
) |
|
(3 |
)% |
Parts, service and collision repair |
|
(216.5 |
) |
|
|
(207.0 |
) |
|
(5 |
)% |
|
|
(885.5 |
) |
|
|
(807.2 |
) |
|
(10 |
)% |
Total cost of sales |
|
(3,043.8 |
) |
|
|
(3,014.5 |
) |
|
(1 |
)% |
|
|
(12,126.7 |
) |
|
|
(11,684.1 |
) |
|
(4 |
)% |
Gross profit |
|
541.1 |
|
|
|
576.1 |
|
|
(6 |
)% |
|
|
2,245.7 |
|
|
|
2,317.0 |
|
|
(3 |
)% |
Selling, general and administrative expenses |
|
(386.3 |
) |
|
|
(366.3 |
) |
|
(5 |
)% |
|
|
(1,600.5 |
) |
|
|
(1,555.1 |
) |
|
(3 |
)% |
Impairment charges |
|
(16.7 |
) |
|
|
(320.4 |
) |
|
95 |
% |
|
|
(79.3 |
) |
|
|
(320.4 |
) |
|
75 |
% |
Depreciation and amortization |
|
(36.6 |
) |
|
|
(33.5 |
) |
|
(9 |
)% |
|
|
(142.3 |
) |
|
|
(127.5 |
) |
|
(12 |
)% |
Operating income (loss) |
|
101.5 |
|
|
|
(144.1 |
) |
|
170 |
% |
|
|
423.6 |
|
|
|
314.0 |
|
|
35 |
% |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, floor plan |
|
(18.4 |
) |
|
|
(13.6 |
) |
|
(35 |
)% |
|
|
(67.2 |
) |
|
|
(34.3 |
) |
|
(96 |
)% |
Interest expense, other, net |
|
(28.3 |
) |
|
|
(24.9 |
) |
|
(14 |
)% |
|
|
(114.6 |
) |
|
|
(89.9 |
) |
|
(27 |
)% |
Other income (expense), net |
|
(0.1 |
) |
|
|
0.1 |
|
|
(200 |
)% |
|
|
0.1 |
|
|
|
0.2 |
|
|
(50 |
)% |
Total other income (expense) |
|
(46.8 |
) |
|
|
(38.4 |
) |
|
(22 |
)% |
|
|
(181.7 |
) |
|
|
(124.0 |
) |
|
(47 |
)% |
Income (loss) before taxes |
|
54.7 |
|
|
|
(182.5 |
) |
|
130 |
% |
|
|
241.9 |
|
|
|
190.0 |
|
|
27 |
% |
Provision for income taxes - benefit (expense) |
|
(16.0 |
) |
|
|
(8.4 |
) |
|
(90 |
)% |
|
|
(63.7 |
) |
|
|
(101.5 |
) |
|
37 |
% |
Net income (loss) |
$ |
38.7 |
|
|
$ |
(190.9 |
) |
|
120 |
% |
|
$ |
178.2 |
|
|
$ |
88.5 |
|
|
101 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings (loss) per common share |
$ |
1.14 |
|
|
$ |
(5.22 |
) |
|
122 |
% |
|
$ |
5.09 |
|
|
$ |
2.29 |
|
|
122 |
% |
Basic weighted-average common shares outstanding |
|
33.9 |
|
|
|
36.5 |
|
|
7 |
% |
|
|
35.0 |
|
|
|
38.7 |
|
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings (loss) per common share |
$ |
1.11 |
|
|
$ |
(5.22 |
) |
|
121 |
% |
|
$ |
4.97 |
|
|
$ |
2.23 |
|
|
123 |
% |
Diluted weighted-average common shares outstanding(1) |
|
34.8 |
|
|
|
36.5 |
|
|
5 |
% |
|
|
35.9 |
|
|
|
39.7 |
|
|
10 |
% |
Dividends declared per common share |
$ |
0.30 |
|
|
$ |
0.28 |
|
|
7 |
% |
|
$ |
1.16 |
|
|
$ |
1.03 |
|
|
13 |
% |
(1) Basic weighted-average common shares outstanding used for the three months ended |
Franchised Dealerships Segment - Reported |
|||||||||||||||||||||
|
Three Months Ended |
|
Better / (Worse) |
|
Twelve Months Ended |
|
Better / (Worse) |
||||||||||||||
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||||||
|
(In millions, except unit and per unit data) |
||||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
$ |
1,664.1 |
|
|
$ |
1,534.5 |
|
|
8 |
% |
|
$ |
6,215.0 |
|
|
$ |
5,581.6 |
|
|
11 |
% |
Fleet new vehicles |
|
21.8 |
|
|
|
29.4 |
|
|
(26 |
)% |
|
|
92.2 |
|
|
|
99.4 |
|
|
(7 |
)% |
Total new vehicles |
|
1,685.9 |
|
|
|
1,563.9 |
|
|
8 |
% |
|
|
6,307.2 |
|
|
|
5,681.0 |
|
|
11 |
% |
Used vehicles |
|
727.5 |
|
|
|
823.4 |
|
|
(12 |
)% |
|
|
3,050.3 |
|
|
|
3,391.5 |
|
|
(10 |
)% |
Wholesale vehicles |
|
39.3 |
|
|
|
52.6 |
|
|
(25 |
)% |
|
|
204.5 |
|
|
|
314.0 |
|
|
(35 |
)% |
Total vehicles |
|
2,452.7 |
|
|
|
2,439.9 |
|
|
1 |
% |
|
|
9,562.0 |
|
|
|
9,386.5 |
|
|
2 |
% |
Parts, service and collision repair |
|
425.2 |
|
|
|
404.8 |
|
|
5 |
% |
|
|
1,714.2 |
|
|
|
1,588.0 |
|
|
8 |
% |
Finance, insurance and other, net |
|
123.2 |
|
|
|
128.0 |
|
|
(4 |
)% |
|
|
498.6 |
|
|
|
510.1 |
|
|
(2 |
)% |
Total revenues |
|
3,001.1 |
|
|
|
2,972.7 |
|
|
1 |
% |
|
|
11,774.8 |
|
|
|
11,484.6 |
|
|
3 |
% |
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
122.2 |
|
|
|
160.8 |
|
|
(24 |
)% |
|
|
518.7 |
|
|
|
655.3 |
|
|
(21 |
)% |
Fleet new vehicles |
|
0.9 |
|
|
|
1.8 |
|
|
(50 |
)% |
|
|
4.0 |
|
|
|
4.9 |
|
|
(18 |
)% |
Total new vehicles |
|
123.1 |
|
|
|
162.6 |
|
|
(24 |
)% |
|
|
522.7 |
|
|
|
660.2 |
|
|
(21 |
)% |
Used vehicles |
|
35.1 |
|
|
|
38.4 |
|
|
(9 |
)% |
|
|
162.9 |
|
|
|
174.4 |
|
|
(7 |
)% |
Wholesale vehicles |
|
(2.7 |
) |
|
|
(3.2 |
) |
|
16 |
% |
|
|
(3.3 |
) |
|
|
(6.3 |
) |
|
48 |
% |
Total vehicles |
|
155.5 |
|
|
|
197.8 |
|
|
(21 |
)% |
|
|
682.3 |
|
|
|
828.3 |
|
|
(18 |
)% |
Parts, service and collision repair |
|
212.6 |
|
|
|
200.9 |
|
|
6 |
% |
|
|
852.7 |
|
|
|
786.7 |
|
|
8 |
% |
Finance, insurance and other, net |
|
123.2 |
|
|
|
128.0 |
|
|
(4 |
)% |
|
|
498.6 |
|
|
|
510.1 |
|
|
(2 |
)% |
Total gross profit |
|
491.3 |
|
|
|
526.7 |
|
|
(7 |
)% |
|
|
2,033.6 |
|
|
|
2,125.1 |
|
|
(4 |
)% |
Selling, general and administrative expenses |
|
(329.1 |
) |
|
|
(298.1 |
) |
|
(10 |
)% |
|
|
(1,314.6 |
) |
|
|
(1,273.0 |
) |
|
(3 |
)% |
Impairment charges |
|
(1.0 |
) |
|
|
(115.5 |
) |
|
99 |
% |
|
|
(1.0 |
) |
|
|
(115.5 |
) |
|
99 |
% |
Depreciation and amortization |
|
(29.4 |
) |
|
|
(26.0 |
) |
|
(13 |
)% |
|
|
(112.3 |
) |
|
|
(101.8 |
) |
|
(10 |
)% |
Operating income (loss) |
|
131.8 |
|
|
|
87.1 |
|
|
51 |
% |
|
|
605.7 |
|
|
|
634.8 |
|
|
(5 |
)% |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, floor plan |
|
(14.6 |
) |
|
|
(9.8 |
) |
|
(49 |
)% |
|
|
(49.2 |
) |
|
|
(23.6 |
) |
|
(108 |
)% |
Interest expense, other, net |
|
(27.5 |
) |
|
|
(23.4 |
) |
|
(18 |
)% |
|
|
(109.7 |
) |
|
|
(85.0 |
) |
|
(29 |
)% |
Other income (expense), net |
|
0.1 |
|
|
|
— |
|
|
100 |
% |
|
|
0.2 |
|
|
|
(0.1 |
) |
|
300 |
% |
Total other income (expense) |
|
(42.0 |
) |
|
|
(33.2 |
) |
|
(27 |
)% |
|
|
(158.7 |
) |
|
|
(108.7 |
) |
|
(46 |
)% |
Income (loss) before taxes |
|
89.8 |
|
|
|
53.9 |
|
|
67 |
% |
|
|
447.0 |
|
|
|
526.1 |
|
|
(15 |
)% |
Add: Impairment charges |
|
1.0 |
|
|
|
115.5 |
|
|
(99 |
)% |
|
|
1.0 |
|
|
|
115.5 |
|
|
(99 |
)% |
Segment income (loss) |
$ |
90.8 |
|
|
$ |
169.4 |
|
|
(46 |
)% |
|
$ |
448.0 |
|
|
$ |
641.6 |
|
|
(30 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Unit Sales Volume: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
28,491 |
|
|
|
26,239 |
|
|
9 |
% |
|
|
107,257 |
|
|
|
99,424 |
|
|
8 |
% |
Fleet new vehicles |
|
500 |
|
|
|
661 |
|
|
(24 |
)% |
|
|
2,000 |
|
|
|
2,115 |
|
|
(5 |
)% |
Total new vehicles |
|
28,991 |
|
|
|
26,900 |
|
|
8 |
% |
|
|
109,257 |
|
|
|
101,539 |
|
|
8 |
% |
Used vehicles |
|
24,365 |
|
|
|
26,631 |
|
|
(9 |
)% |
|
|
100,210 |
|
|
|
108,512 |
|
|
(8 |
)% |
Wholesale vehicles |
|
4,440 |
|
|
|
5,616 |
|
|
(21 |
)% |
|
|
20,602 |
|
|
|
24,052 |
|
|
(14 |
)% |
Retail new & used vehicles |
|
52,856 |
|
|
|
52,870 |
|
|
— |
% |
|
|
207,467 |
|
|
|
207,936 |
|
|
— |
% |
Used:New Ratio |
|
0.86 |
|
|
|
1.01 |
|
|
(15 |
)% |
|
|
0.93 |
|
|
|
1.09 |
|
|
(15 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross Profit Per Unit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
$ |
4,289 |
|
|
$ |
6,130 |
|
|
(30 |
)% |
|
$ |
4,836 |
|
|
$ |
6,591 |
|
|
(27 |
)% |
Fleet new vehicles |
$ |
1,780 |
|
|
$ |
2,642 |
|
|
(33 |
)% |
|
$ |
1,989 |
|
|
$ |
2,292 |
|
|
(13 |
)% |
New vehicles |
$ |
4,246 |
|
|
$ |
6,044 |
|
|
(30 |
)% |
|
$ |
4,784 |
|
|
$ |
6,502 |
|
|
(26 |
)% |
Used vehicles |
$ |
1,440 |
|
|
$ |
1,442 |
|
|
— |
% |
|
$ |
1,626 |
|
|
$ |
1,607 |
|
|
1 |
% |
Finance, insurance and other, net |
$ |
2,330 |
|
|
$ |
2,421 |
|
|
(4 |
)% |
|
$ |
2,403 |
|
|
$ |
2,453 |
|
|
(2 |
)% |
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 |
|
Better / (Worse) |
|
Twelve Months Ended |
|
Better / (Worse) |
||||||||||||||
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||||||
|
(In millions, except unit and per unit data) |
||||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
$ |
1,654.9 |
|
|
$ |
1,513.6 |
|
|
9 |
% |
|
$ |
6,145.3 |
|
|
$ |
5,508.8 |
|
|
12 |
% |
Fleet new vehicles |
|
21.9 |
|
|
|
29.3 |
|
|
(25 |
)% |
|
|
92.1 |
|
|
|
99.4 |
|
|
(7 |
)% |
Total new vehicles |
|
1,676.8 |
|
|
|
1,542.9 |
|
|
9 |
% |
|
|
6,237.4 |
|
|
|
5,608.2 |
|
|
11 |
% |
Used vehicles |
|
724.6 |
|
|
|
810.7 |
|
|
(11 |
)% |
|
|
3,012.1 |
|
|
|
3,334.4 |
|
|
(10 |
)% |
Wholesale vehicles |
|
39.2 |
|
|
|
51.1 |
|
|
(23 |
)% |
|
|
202.2 |
|
|
|
309.1 |
|
|
(35 |
)% |
Total vehicles |
|
2,440.6 |
|
|
|
2,404.7 |
|
|
1 |
% |
|
|
9,451.7 |
|
|
|
9,251.7 |
|
|
2 |
% |
Parts, service and collision repair |
|
423.9 |
|
|
|
399.0 |
|
|
6 |
% |
|
|
1,696.4 |
|
|
|
1,565.8 |
|
|
8 |
% |
Finance, insurance and other, net |
|
122.8 |
|
|
|
124.4 |
|
|
(1 |
)% |
|
|
493.6 |
|
|
|
494.0 |
|
|
— |
% |
Total revenues |
|
2,987.3 |
|
|
|
2,928.1 |
|
|
2 |
% |
|
|
11,641.7 |
|
|
|
11,311.5 |
|
|
3 |
% |
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
121.4 |
|
|
|
158.8 |
|
|
(24 |
)% |
|
|
513.5 |
|
|
|
647.5 |
|
|
(21 |
)% |
Fleet new vehicles |
|
0.9 |
|
|
|
1.7 |
|
|
(47 |
)% |
|
|
4.0 |
|
|
|
4.8 |
|
|
(17 |
)% |
Total new vehicles |
|
122.2 |
|
|
|
160.5 |
|
|
(24 |
)% |
|
|
517.4 |
|
|
|
652.3 |
|
|
(21 |
)% |
Used vehicles |
|
34.8 |
|
|
|
37.8 |
|
|
(8 |
)% |
|
|
161.1 |
|
|
|
171.3 |
|
|
(6 |
)% |
Wholesale vehicles |
|
(2.6 |
) |
|
|
(3.1 |
) |
|
16 |
% |
|
|
(2.5 |
) |
|
|
(5.5 |
) |
|
55 |
% |
Total vehicles |
|
154.4 |
|
|
|
195.2 |
|
|
(21 |
)% |
|
|
676.0 |
|
|
|
818.1 |
|
|
(17 |
)% |
Parts, service and collision repair |
|
211.5 |
|
|
|
197.8 |
|
|
7 |
% |
|
|
842.2 |
|
|
|
774.8 |
|
|
9 |
% |
Finance, insurance and other, net |
|
122.8 |
|
|
|
124.4 |
|
|
(1 |
)% |
|
|
493.6 |
|
|
|
494.0 |
|
|
— |
% |
Total gross profit |
$ |
488.7 |
|
|
$ |
517.4 |
|
|
(6 |
)% |
|
$ |
2,011.8 |
|
|
$ |
2,086.9 |
|
|
(4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Unit Sales Volume: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
28,357 |
|
|
|
25,796 |
|
|
10 |
% |
|
|
105,891 |
|
|
|
97,772 |
|
|
8 |
% |
Fleet new vehicles |
|
500 |
|
|
|
661 |
|
|
(24 |
)% |
|
|
2,000 |
|
|
|
2,115 |
|
|
(5 |
)% |
Total new vehicles |
|
28,857 |
|
|
|
26,457 |
|
|
9 |
% |
|
|
107,891 |
|
|
|
99,887 |
|
|
8 |
% |
Used vehicles |
|
24,269 |
|
|
|
26,128 |
|
|
(7 |
)% |
|
|
98,841 |
|
|
|
106,320 |
|
|
(7 |
)% |
Wholesale vehicles |
|
4,429 |
|
|
|
5,466 |
|
|
(19 |
)% |
|
|
20,333 |
|
|
|
23,630 |
|
|
(14 |
)% |
Retail new & used vehicles |
|
52,626 |
|
|
|
51,924 |
|
|
1 |
% |
|
|
204,732 |
|
|
|
204,092 |
|
|
— |
% |
Used:New Ratio |
|
0.86 |
|
|
|
1.01 |
|
|
(15 |
)% |
|
|
0.93 |
|
|
|
1.09 |
|
|
(15 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross Profit Per Unit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
$ |
4,279 |
|
|
$ |
6,155 |
|
|
(30 |
)% |
|
$ |
4,849 |
|
|
$ |
6,623 |
|
|
(27 |
)% |
Fleet new vehicles |
$ |
1,780 |
|
|
$ |
2,642 |
|
|
(33 |
)% |
|
$ |
1,989 |
|
|
$ |
2,292 |
|
|
(13 |
)% |
New vehicles |
$ |
4,236 |
|
|
$ |
6,067 |
|
|
(30 |
)% |
|
$ |
4,796 |
|
|
$ |
6,531 |
|
|
(27 |
)% |
Used vehicles |
$ |
1,433 |
|
|
$ |
1,447 |
|
|
(1 |
)% |
|
$ |
1,630 |
|
|
$ |
1,611 |
|
|
1 |
% |
Finance, insurance and other, net |
$ |
2,334 |
|
|
$ |
2,396 |
|
|
(3 |
)% |
|
$ |
2,411 |
|
|
$ |
2,421 |
|
|
— |
% |
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 |
|
Better / (Worse) |
|
Twelve Months Ended |
|
Better / (Worse) |
||||||||||||||
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||||||
|
(In millions, except unit and per unit data) |
||||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
$ |
— |
|
|
$ |
2.0 |
|
|
(100 |
)% |
|
$ |
1.0 |
|
|
$ |
9.2 |
|
|
(89 |
)% |
Used vehicles |
|
492.5 |
|
|
|
515.5 |
|
|
(4 |
)% |
|
|
2,143.8 |
|
|
|
2,116.8 |
|
|
1 |
% |
Wholesale vehicles |
|
22.6 |
|
|
|
27.3 |
|
|
(17 |
)% |
|
|
111.7 |
|
|
|
170.6 |
|
|
(35 |
)% |
Total vehicles |
|
515.1 |
|
|
|
544.8 |
|
|
(5 |
)% |
|
|
2,256.5 |
|
|
|
2,296.6 |
|
|
(2 |
)% |
Finance, insurance and other, net |
|
41.5 |
|
|
|
44.5 |
|
|
(7 |
)% |
|
|
177.9 |
|
|
|
166.4 |
|
|
7 |
% |
Total revenues |
|
556.6 |
|
|
|
589.3 |
|
|
(6 |
)% |
|
|
2,434.4 |
|
|
|
2,463.0 |
|
|
(1 |
)% |
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
— |
|
|
|
0.2 |
|
|
(100 |
)% |
|
|
0.1 |
|
|
|
1.1 |
|
|
(91 |
)% |
Used vehicles |
|
1.7 |
|
|
|
(3.6 |
) |
|
147 |
% |
|
|
(17.1 |
) |
|
|
4.4 |
|
|
(489 |
)% |
Wholesale vehicles |
|
(0.4 |
) |
|
|
(0.3 |
) |
|
(33 |
)% |
|
|
0.9 |
|
|
|
3.2 |
|
|
(72 |
)% |
Total vehicles |
|
1.3 |
|
|
|
(3.7 |
) |
|
135 |
% |
|
|
(16.1 |
) |
|
|
8.7 |
|
|
(285 |
)% |
Finance, insurance and other, net |
|
41.5 |
|
|
|
44.5 |
|
|
(7 |
)% |
|
|
177.9 |
|
|
|
166.4 |
|
|
7 |
% |
Total gross profit |
|
42.8 |
|
|
|
40.8 |
|
|
5 |
% |
|
|
161.8 |
|
|
|
175.1 |
|
|
(8 |
)% |
Selling, general and administrative expenses |
|
(48.0 |
) |
|
|
(62.3 |
) |
|
23 |
% |
|
|
(247.0 |
) |
|
|
(269.8 |
) |
|
8 |
% |
Impairment charges |
|
(15.7 |
) |
|
|
(204.9 |
) |
|
92 |
% |
|
|
(78.3 |
) |
|
|
(204.9 |
) |
|
62 |
% |
Depreciation and amortization |
|
(6.2 |
) |
|
|
(7.0 |
) |
|
11 |
% |
|
|
(26.6 |
) |
|
|
(24.7 |
) |
|
(8 |
)% |
Operating income (loss) |
|
(27.1 |
) |
|
|
(233.4 |
) |
|
88 |
% |
|
|
(190.1 |
) |
|
|
(324.3 |
) |
|
41 |
% |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, floor plan |
|
(3.8 |
) |
|
|
(3.9 |
) |
|
3 |
% |
|
|
(17.4 |
) |
|
|
(10.7 |
) |
|
(63 |
)% |
Interest expense, other, net |
|
(0.7 |
) |
|
|
(0.9 |
) |
|
22 |
% |
|
|
(3.2 |
) |
|
|
(3.9 |
) |
|
18 |
% |
Other income (expense), net |
|
— |
|
|
|
— |
|
|
— |
% |
|
|
(0.1 |
) |
|
|
0.1 |
|
|
(200 |
)% |
Total other income (expense) |
|
(4.5 |
) |
|
|
(4.8 |
) |
|
6 |
% |
|
|
(20.7 |
) |
|
|
(14.5 |
) |
|
(43 |
)% |
Income (loss) before taxes |
|
(31.6 |
) |
|
|
(238.2 |
) |
|
87 |
% |
|
|
(210.8 |
) |
|
|
(338.8 |
) |
|
38 |
% |
Add: Impairment charges |
|
15.7 |
|
|
|
204.9 |
|
|
(92 |
)% |
|
|
78.3 |
|
|
|
204.9 |
|
|
(62 |
)% |
Segment income (loss) |
$ |
(15.9 |
) |
|
$ |
(33.3 |
) |
|
52 |
% |
|
$ |
(132.5 |
) |
|
$ |
(133.9 |
) |
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Unit Sales Volume: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
— |
|
|
|
26 |
|
|
(100 |
)% |
|
|
11 |
|
|
|
152 |
|
|
(93 |
)% |
Used vehicles |
|
17,562 |
|
|
|
17,435 |
|
|
1 |
% |
|
|
73,676 |
|
|
|
64,107 |
|
|
15 |
% |
Wholesale vehicles |
|
2,621 |
|
|
|
2,444 |
|
|
7 |
% |
|
|
11,512 |
|
|
|
11,236 |
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross Profit Per Unit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total used vehicle and F&I |
$ |
2,461 |
|
|
$ |
2,340 |
|
|
5 |
% |
|
$ |
2,183 |
|
|
$ |
2,657 |
|
|
(18 |
)% |
EchoPark Segment - Same Market |
|||||||||||||||||||||
|
Three Months Ended |
|
Better / (Worse) |
|
Twelve Months Ended |
|
Better / (Worse) |
||||||||||||||
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||||||
|
(In millions, except unit and per unit data) |
||||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Used vehicles |
|
426.9 |
|
|
|
306.0 |
|
|
40 |
% |
|
|
1,754.7 |
|
|
|
1,129.2 |
|
|
55 |
% |
Wholesale vehicles |
|
14.9 |
|
|
|
10.8 |
|
|
38 |
% |
|
|
73.9 |
|
|
|
83.9 |
|
|
(12 |
)% |
Total vehicles |
|
441.8 |
|
|
|
316.8 |
|
|
39 |
% |
|
|
1,828.6 |
|
|
|
1,213.0 |
|
|
51 |
% |
Finance, insurance and other, net |
|
39.7 |
|
|
|
30.7 |
|
|
29 |
% |
|
|
160.1 |
|
|
|
101.1 |
|
|
58 |
% |
Total revenues |
|
481.5 |
|
|
|
347.5 |
|
|
39 |
% |
|
|
1,988.7 |
|
|
|
1,314.1 |
|
|
51 |
% |
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Used vehicles |
|
(0.4 |
) |
|
|
(3.4 |
) |
|
88 |
% |
|
|
(5.2 |
) |
|
|
(17.2 |
) |
|
70 |
% |
Wholesale vehicles |
|
(0.4 |
) |
|
|
(0.1 |
) |
|
(300 |
)% |
|
|
0.7 |
|
|
|
1.8 |
|
|
(61 |
)% |
Total vehicles |
|
(0.8 |
) |
|
|
(3.5 |
) |
|
77 |
% |
|
|
(4.5 |
) |
|
|
(15.4 |
) |
|
71 |
% |
Finance, insurance and other, net |
|
39.7 |
|
|
|
30.7 |
|
|
29 |
% |
|
|
160.1 |
|
|
|
101.1 |
|
|
58 |
% |
Total gross profit |
$ |
38.9 |
|
|
$ |
27.2 |
|
|
43 |
% |
|
$ |
155.6 |
|
|
$ |
85.7 |
|
|
82 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Unit Sales Volume: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Used vehicles |
|
16,817 |
|
|
|
11,856 |
|
|
42 |
% |
|
|
65,969 |
|
|
|
39,933 |
|
|
65 |
% |
Wholesale vehicles |
|
2,387 |
|
|
|
1,663 |
|
|
44 |
% |
|
|
9,765 |
|
|
|
7,497 |
|
|
30 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross Profit Per Unit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total used vehicle and F&I |
$ |
2,338 |
|
|
$ |
2,310 |
|
|
1 |
% |
|
$ |
2,348 |
|
|
$ |
2,100 |
|
|
12 |
% |
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 |
|
Better / (Worse) |
|
Twelve Months Ended |
|
Better / (Worse) |
||||||||||||||
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||||||
|
(In millions, except unit and per unit data) |
||||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
$ |
16.1 |
|
|
$ |
18.8 |
|
|
(14 |
)% |
|
$ |
88.6 |
|
|
$ |
31.8 |
|
|
179 |
% |
Used vehicles |
|
2.4 |
|
|
|
2.1 |
|
|
14 |
% |
|
|
19.5 |
|
|
|
7.1 |
|
|
175 |
% |
Wholesale vehicles |
|
0.7 |
|
|
|
0.1 |
|
|
600 |
% |
|
|
2.6 |
|
|
|
0.3 |
|
|
767 |
% |
Total vehicles |
|
19.2 |
|
|
|
21.0 |
|
|
(9 |
)% |
|
|
110.7 |
|
|
|
39.2 |
|
|
182 |
% |
Parts, service and collision repair |
|
6.7 |
|
|
|
6.3 |
|
|
6 |
% |
|
|
45.3 |
|
|
|
11.7 |
|
|
287 |
% |
Finance, insurance and other, net |
|
1.3 |
|
|
|
1.3 |
|
|
— |
% |
|
|
7.2 |
|
|
|
2.6 |
|
|
177 |
% |
Total revenues |
|
27.2 |
|
|
|
28.6 |
|
|
(5 |
)% |
|
|
163.2 |
|
|
|
53.5 |
|
|
205 |
% |
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
2.3 |
|
|
|
3.6 |
|
|
(36 |
)% |
|
|
16.6 |
|
|
|
6.4 |
|
|
159 |
% |
Used vehicles |
|
0.7 |
|
|
|
0.7 |
|
|
— |
% |
|
|
5.4 |
|
|
|
2.0 |
|
|
170 |
% |
Wholesale vehicles |
|
(0.1 |
) |
|
|
— |
|
|
(100 |
)% |
|
|
(0.2 |
) |
|
|
— |
|
|
(100 |
)% |
Total vehicles |
|
2.9 |
|
|
|
4.3 |
|
|
(33 |
)% |
|
|
21.8 |
|
|
|
8.4 |
|
|
160 |
% |
Parts, service and collision repair |
|
2.8 |
|
|
|
3.1 |
|
|
(10 |
)% |
|
|
21.3 |
|
|
|
5.8 |
|
|
267 |
% |
Finance, insurance and other, net |
|
1.3 |
|
|
|
1.3 |
|
|
— |
% |
|
|
7.2 |
|
|
|
2.6 |
|
|
177 |
% |
Total gross profit |
|
7.0 |
|
|
|
8.7 |
|
|
(20 |
)% |
|
|
50.3 |
|
|
|
16.8 |
|
|
199 |
% |
Selling, general and administrative expenses |
|
(9.2 |
) |
|
|
(5.9 |
) |
|
(56 |
)% |
|
|
(38.9 |
) |
|
|
(12.3 |
) |
|
(216 |
)% |
Impairment charges |
|
— |
|
|
|
— |
|
|
— |
% |
|
|
— |
|
|
|
— |
|
|
— |
% |
Depreciation and amortization |
|
(1.0 |
) |
|
|
(0.6 |
) |
|
(67 |
)% |
|
|
(3.4 |
) |
|
|
(1.0 |
) |
|
(240 |
)% |
Operating income (loss) |
|
(3.2 |
) |
|
|
2.2 |
|
|
(245 |
)% |
|
|
8.0 |
|
|
|
3.5 |
|
|
129 |
% |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, floor plan |
|
— |
|
|
|
— |
|
|
— |
% |
|
|
(0.6 |
) |
|
|
— |
|
|
(100 |
)% |
Interest expense, other, net |
|
(0.2 |
) |
|
|
(0.6 |
) |
|
67 |
% |
|
|
(1.7 |
) |
|
|
(1.0 |
) |
|
(70 |
)% |
Other income (expense), net |
|
(0.1 |
) |
|
|
0.2 |
|
|
(150 |
)% |
|
|
— |
|
|
|
0.2 |
|
|
(100 |
)% |
Total other income (expense) |
|
(0.3 |
) |
|
|
(0.4 |
) |
|
25 |
% |
|
|
(2.3 |
) |
|
|
(0.8 |
) |
|
(188 |
)% |
Income (loss) before taxes |
|
(3.5 |
) |
|
|
1.8 |
|
|
(294 |
)% |
|
|
5.7 |
|
|
|
2.7 |
|
|
111 |
% |
Add: impairment charges |
|
— |
|
|
|
— |
|
|
— |
% |
|
|
— |
|
|
|
— |
|
|
— |
% |
Segment income (loss) |
$ |
(3.5 |
) |
|
$ |
1.8 |
|
|
(294 |
)% |
|
$ |
5.7 |
|
|
$ |
2.7 |
|
|
111 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Unit Sales Volume: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
948 |
|
|
|
1,013 |
|
|
(6 |
)% |
|
|
4,842 |
|
|
|
1,592 |
|
|
204 |
% |
Used vehicles |
|
289 |
|
|
|
237 |
|
|
22 |
% |
|
|
2,261 |
|
|
|
590 |
|
|
283 |
% |
Wholesale vehicles |
|
66 |
|
|
|
34 |
|
|
94 |
% |
|
|
216 |
|
|
|
35 |
|
|
517 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross Profit Per Unit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
$ |
2,429 |
|
|
$ |
3,535 |
|
|
(31 |
)% |
|
$ |
3,435 |
|
|
$ |
3,974 |
|
|
(14 |
)% |
Used vehicles |
$ |
2,307 |
|
|
$ |
2,860 |
|
|
(19 |
)% |
|
$ |
2,394 |
|
|
$ |
3,349 |
|
|
(29 |
)% |
Finance, insurance and other, net |
$ |
1,066 |
|
|
$ |
1,026 |
|
|
4 |
% |
|
$ |
1,017 |
|
|
$ |
1,205 |
|
|
(16 |
)% |
Powersports Segment - Same Store |
|||||||||||||||||||||
|
Three Months Ended |
|
Better / (Worse) |
|
Twelve Months Ended |
|
Better / (Worse) |
||||||||||||||
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||||||
|
(In millions, except unit and per unit data) |
||||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
$ |
15.9 |
|
$ |
18.8 |
|
(15 |
)% |
|
$ |
24.4 |
|
|
$ |
29.5 |
|
(17 |
)% |
|||
Used vehicles |
|
1.7 |
|
|
|
2.1 |
|
|
(19 |
)% |
|
|
5.2 |
|
|
|
6.9 |
|
|
(25 |
)% |
Wholesale vehicles |
|
0.3 |
|
|
|
0.1 |
|
|
200 |
% |
|
|
0.7 |
|
|
|
0.2 |
|
|
250 |
% |
Total vehicles |
|
17.9 |
|
|
|
21.0 |
|
|
(15 |
)% |
|
|
30.3 |
|
|
|
36.6 |
|
|
(17 |
)% |
Parts, service and collision repair |
|
5.2 |
|
|
|
6.3 |
|
|
(17 |
)% |
|
|
9.6 |
|
|
|
11.0 |
|
|
(13 |
)% |
Finance, insurance and other, net |
|
1.3 |
|
|
|
1.3 |
|
|
— |
% |
|
|
2.1 |
|
|
|
2.5 |
|
|
(16 |
)% |
Total revenues |
|
24.4 |
|
|
|
28.6 |
|
|
(15 |
)% |
|
|
42.0 |
|
|
|
50.1 |
|
|
(16 |
)% |
Gross Profit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
2.2 |
|
|
|
3.6 |
|
|
(39 |
)% |
|
|
3.7 |
|
|
|
5.9 |
|
|
(37 |
)% |
Used vehicles |
|
0.4 |
|
|
|
0.7 |
|
|
(43 |
)% |
|
|
1.1 |
|
|
|
1.9 |
|
|
(42 |
)% |
Wholesale vehicles |
|
— |
|
|
|
— |
|
|
— |
% |
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
— |
% |
Total vehicles |
|
2.6 |
|
|
|
4.3 |
|
|
(40 |
)% |
|
|
4.7 |
|
|
|
7.7 |
|
|
(39 |
)% |
Parts, service and collision repair |
|
2.2 |
|
|
|
3.1 |
|
|
(29 |
)% |
|
|
4.3 |
|
|
|
5.5 |
|
|
(22 |
)% |
Finance, insurance and other, net |
|
1.3 |
|
|
|
1.3 |
|
|
— |
% |
|
|
2.1 |
|
|
|
2.5 |
|
|
(16 |
)% |
Total gross profit |
$ |
6.1 |
|
|
$ |
8.7 |
|
|
(30 |
)% |
|
$ |
11.1 |
|
|
$ |
15.7 |
|
|
(29 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Unit Sales Volume: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
|
932 |
|
|
|
1,013 |
|
|
(8 |
)% |
|
|
1,358 |
|
|
|
1,480 |
|
|
(8 |
)% |
Used vehicles |
|
201 |
|
|
|
237 |
|
|
(15 |
)% |
|
|
477 |
|
|
|
563 |
|
|
(15 |
)% |
Wholesale vehicles |
|
8 |
|
|
|
34 |
|
|
(76 |
)% |
|
|
17 |
|
|
|
35 |
|
|
(51 |
)% |
Retail new & used vehicles |
|
1,133 |
|
|
|
1,250 |
|
|
(9 |
)% |
|
|
1,835 |
|
|
|
2,043 |
|
|
(10 |
)% |
Used:New Ratio |
|
0.22 |
|
|
|
0.23 |
|
|
(4 |
)% |
|
|
0.35 |
|
|
|
0.38 |
|
|
(8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross Profit Per Unit: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail new vehicles |
$ |
2,407 |
|
|
$ |
3,535 |
|
|
(32 |
)% |
|
$ |
2,707 |
|
|
$ |
3,989 |
|
|
(32 |
)% |
Used vehicles |
$ |
2,195 |
|
|
$ |
2,860 |
|
|
(23 |
)% |
|
$ |
2,337 |
|
|
$ |
3,359 |
|
|
(30 |
)% |
Finance, insurance and other, net |
$ |
1,103 |
|
|
$ |
1,026 |
|
|
8 |
% |
|
$ |
1,161 |
|
|
$ |
1,209 |
|
|
(4 |
)% |
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 |
|
Better / (Worse) |
|||||||||||
|
2023 |
|
2022 |
|
Change |
|
% Change |
|||||||
|
(In millions) |
|||||||||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Compensation |
$ |
240.5 |
|
|
$ |
240.8 |
|
|
$ |
0.3 |
|
|
— |
% |
Advertising |
|
20.8 |
|
|
|
22.6 |
|
|
|
1.8 |
|
|
8 |
% |
Rent |
|
11.5 |
|
|
|
12.7 |
|
|
|
1.2 |
|
|
9 |
% |
Other |
|
113.5 |
|
|
|
90.2 |
|
|
|
(23.3 |
) |
|
(26 |
)% |
Total SG&A expenses |
$ |
386.3 |
|
|
$ |
366.3 |
|
|
$ |
(20.0 |
) |
|
(5 |
)% |
Adjustments: |
|
|
|
|
|
|
|
|||||||
Acquisition and disposition-related gain (loss) |
$ |
— |
|
|
$ |
9.1 |
|
|
|
|
|
|||
Total SG&A adjustments |
$ |
— |
|
|
$ |
9.1 |
|
|
|
|
|
|||
Adjusted: |
|
|
|
|
|
|
|
|||||||
Total adjusted SG&A expenses |
$ |
386.3 |
|
|
$ |
375.4 |
|
|
$ |
(10.9 |
) |
|
(3 |
)% |
Reported: |
|
|
|
|
|
|
|
|||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
|||||||
Compensation |
|
44.4 |
% |
|
|
41.8 |
% |
|
|
(270 |
) |
bps |
||
Advertising |
|
3.8 |
% |
|
|
3.9 |
% |
|
|
10 |
|
bps |
||
Rent |
|
2.1 |
% |
|
|
2.2 |
% |
|
|
10 |
|
bps |
||
Other |
|
21.1 |
% |
|
|
15.7 |
% |
|
|
(540 |
) |
bps |
||
Total SG&A expenses as a % of gross profit |
|
71.4 |
% |
|
|
63.6 |
% |
|
|
(780 |
) |
bps |
||
Adjustments: |
|
|
|
|
|
|
||||||||
Acquisition and disposition-related gain (loss) |
|
— |
% |
|
|
1.6 |
% |
|
|
|
||||
Total effect of adjustments |
|
— |
% |
|
|
1.6 |
% |
|
|
|
||||
Adjusted: |
|
|
|
|
|
|
||||||||
Total adjusted SG&A expenses as a % of gross profit |
|
71.4 |
% |
|
|
65.2 |
% |
|
|
(620 |
) |
bps |
||
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Total gross profit |
$ |
541.1 |
|
|
$ |
576.1 |
|
|
$ |
(35.0 |
) |
|
(6 |
)% |
Non-GAAP Reconciliation - Consolidated - SG&A Expenses (Continued) |
||||||||||||||
|
Twelve Months Ended |
|
Better / (Worse) |
|||||||||||
|
2023 |
|
2022 |
|
Change |
|
% Change |
|||||||
|
(In millions) |
|||||||||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Compensation |
$ |
1,016.3 |
|
|
$ |
1,014.8 |
|
|
$ |
(1.5 |
) |
|
— |
% |
Advertising |
|
92.2 |
|
|
|
95.4 |
|
|
|
3.2 |
|
|
3 |
% |
Rent |
|
46.1 |
|
|
|
51.0 |
|
|
|
4.9 |
|
|
10 |
% |
Other |
|
445.9 |
|
|
|
393.9 |
|
|
|
(52.0 |
) |
|
(13 |
)% |
Total SG&A expenses |
$ |
1,600.5 |
|
|
$ |
1,555.1 |
|
|
$ |
(45.4 |
) |
|
(3 |
)% |
Adjustments: |
|
|
|
|
|
|
|
|||||||
Acquisition and disposition-related gain (loss) |
$ |
20.7 |
|
|
$ |
9.1 |
|
|
|
|
|
|||
Hail and storm damage charges |
|
(1.9 |
) |
|
|
— |
|
|
|
|
|
|||
Lease exit charges |
|
(4.3 |
) |
|
|
— |
|
|
|
|
|
|||
Severance and long-term compensation charges |
|
(5.1 |
) |
|
|
(4.4 |
) |
|
|
|
|
|||
Total SG&A adjustments |
$ |
9.4 |
|
|
$ |
4.7 |
|
|
|
|
|
|||
Adjusted: |
|
|
|
|
|
|
|
|||||||
Total adjusted SG&A expenses |
$ |
1,609.9 |
|
|
$ |
1,559.8 |
|
|
$ |
(50.1 |
) |
|
(3 |
)% |
Reported: |
|
|
|
|
|
|
|
|||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
|||||||
Compensation |
|
45.3 |
% |
|
|
43.8 |
% |
|
|
(150 |
) |
bps |
||
Advertising |
|
4.1 |
% |
|
|
4.1 |
% |
|
|
— |
|
bps |
||
Rent |
|
2.1 |
% |
|
|
2.2 |
% |
|
|
10 |
|
bps |
||
Other |
|
19.8 |
% |
|
|
17.0 |
% |
|
|
(280 |
) |
bps |
||
Total SG&A expenses as a % of gross profit |
|
71.3 |
% |
|
|
67.1 |
% |
|
|
(420 |
) |
bps |
||
Adjustments: |
|
|
|
|
|
|
||||||||
Acquisition and disposition-related gain (loss) |
|
0.2 |
% |
|
|
0.4 |
% |
|
|
|
||||
Hail and storm damage charges |
|
— |
% |
|
|
— |
% |
|
|
|
|
|||
Lease exit charges |
|
— |
% |
|
|
— |
% |
|
|
|
|
|||
Severance and long-term compensation charges |
|
(0.1 |
)% |
|
|
(0.2 |
)% |
|
|
|
|
|||
Total effect of adjustments |
|
0.1 |
% |
|
|
0.2 |
% |
|
|
|
||||
Adjusted: |
|
|
|
|
|
|
||||||||
Total adjusted SG&A expenses as a % of gross profit |
|
71.4 |
% |
|
|
67.3 |
% |
|
|
(410 |
) |
bps |
||
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Total gross profit |
$ |
2,245.7 |
|
|
$ |
2,317.0 |
|
|
$ |
(71.3 |
) |
|
(3 |
)% |
Adjustments: |
|
|
|
|
|
|
|
|||||||
Used vehicle inventory adjustment |
$ |
10.0 |
|
|
$ |
— |
|
|
|
|
|
|||
Total adjustments |
$ |
10.0 |
|
|
$ |
— |
|
|
|
|
|
|||
Adjusted: |
|
|
|
|
|
|
|
|||||||
Total adjusted gross profit |
$ |
2,255.7 |
|
|
$ |
2,317.0 |
|
|
$ |
(61.3 |
) |
|
(3 |
)% |
Non-GAAP Reconciliation - Franchised Dealerships Segment - SG&A Expenses |
||||||||||||||
|
Three Months Ended |
|
Better / (Worse) |
|||||||||||
|
2023 |
|
2022 |
|
Change |
|
% Change |
|||||||
|
(In millions) |
|||||||||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Compensation |
$ |
206.9 |
|
|
$ |
200.8 |
|
|
$ |
(6.1 |
) |
|
(3 |
)% |
Advertising |
|
10.8 |
|
|
|
10.7 |
|
|
|
(0.1 |
) |
|
(1 |
)% |
Rent |
|
10.5 |
|
|
|
10.5 |
|
|
|
— |
|
|
— |
% |
Other |
|
100.9 |
|
|
|
76.1 |
|
|
|
(24.8 |
) |
|
(33 |
)% |
Total SG&A expenses |
$ |
329.1 |
|
|
$ |
298.1 |
|
|
$ |
(31.0 |
) |
|
(10 |
)% |
Adjustments: |
|
|
|
|
|
|
|
|||||||
Acquisition and disposition-related gain (loss) |
$ |
— |
|
|
$ |
9.1 |
|
|
|
|
|
|||
Total SG&A adjustments |
$ |
— |
|
|
$ |
9.1 |
|
|
|
|
|
|||
Adjusted: |
|
|
|
|
|
|
|
|||||||
Total adjusted SG&A expenses |
$ |
329.1 |
|
|
$ |
307.2 |
|
|
$ |
(21.9 |
) |
|
(7 |
)% |
Reported: |
|
|
|
|
|
|
|
|||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
|||||||
Compensation |
|
42.1 |
% |
|
|
38.1 |
% |
|
|
(400 |
) |
bps |
||
Advertising |
|
2.2 |
% |
|
|
2.0 |
% |
|
|
(20 |
) |
bps |
||
Rent |
|
2.1 |
% |
|
|
2.0 |
% |
|
|
(10 |
) |
bps |
||
Other |
|
20.6 |
% |
|
|
14.5 |
% |
|
|
(610 |
) |
bps |
||
Total SG&A expenses as a % of gross profit |
|
67.0 |
% |
|
|
56.6 |
% |
|
|
(1,040 |
) |
bps |
||
Adjustments: |
|
|
|
|
|
|
||||||||
Acquisition and disposition-related gain (loss) |
|
— |
% |
|
|
1.7 |
% |
|
|
|
||||
Total effect of adjustments |
|
— |
% |
|
|
1.7 |
% |
|
|
|
||||
Adjusted: |
|
|
|
|
|
|
||||||||
Total adjusted SG&A expenses as a % of gross profit |
|
67.0 |
% |
|
|
58.3 |
% |
|
|
(870 |
) |
bps |
||
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Total gross profit |
$ |
491.3 |
|
|
$ |
526.7 |
|
|
$ |
(35.4 |
) |
|
(7 |
)% |
Non-GAAP Reconciliation - Franchised Dealerships Segment - SG&A Expenses (Continued) |
||||||||||||||
|
Twelve Months Ended |
|
Better / (Worse) |
|||||||||||
|
2023 |
|
2022 |
|
Change |
|
% Change |
|||||||
|
(In millions) |
|||||||||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Compensation |
$ |
856.6 |
|
|
$ |
858.0 |
|
|
$ |
1.4 |
|
|
— |
% |
Advertising |
|
40.5 |
|
|
|
36.9 |
|
|
|
(3.6 |
) |
|
(10 |
)% |
Rent |
|
40.3 |
|
|
|
42.4 |
|
|
|
2.1 |
|
|
5 |
% |
Other |
|
377.2 |
|
|
|
335.6 |
|
|
|
(41.6 |
) |
|
(12 |
)% |
Total SG&A expenses |
$ |
1,314.6 |
|
|
$ |
1,272.9 |
|
|
$ |
(41.7 |
) |
|
(3 |
)% |
Adjustments: |
|
|
|
|
|
|
|
|||||||
Acquisition and disposition-related gain (loss) |
$ |
20.9 |
|
|
$ |
9.1 |
|
|
|
|
|
|||
Hail and storm damage charges |
|
(1.9 |
) |
|
|
— |
|
|
|
|
|
|||
Long-term compensation charges |
|
— |
|
|
|
(4.4 |
) |
|
|
|
|
|||
Total SG&A adjustments |
$ |
19.0 |
|
|
$ |
4.7 |
|
|
|
|
|
|||
Adjusted: |
|
|
|
|
|
|
|
|||||||
Total adjusted SG&A expenses |
$ |
1,333.6 |
|
|
$ |
1,277.6 |
|
|
$ |
(56.0 |
) |
|
(4 |
)% |
Reported: |
|
|
|
|
|
|
|
|||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
|||||||
Compensation |
|
42.1 |
% |
|
|
40.4 |
% |
|
|
(170 |
) |
bps |
||
Advertising |
|
2.0 |
% |
|
|
1.7 |
% |
|
|
(30 |
) |
bps |
||
Rent |
|
2.0 |
% |
|
|
2.0 |
% |
|
|
— |
|
bps |
||
Other |
|
18.5 |
% |
|
|
15.8 |
% |
|
|
(270 |
) |
bps |
||
Total SG&A expenses as a % of gross profit |
|
64.6 |
% |
|
|
59.9 |
% |
|
|
(470 |
) |
bps |
||
Adjustments: |
|
|
|
|
|
|
||||||||
Acquisition and disposition-related gain (loss) |
|
1.1 |
% |
|
|
0.4 |
% |
|
|
|
||||
Hail and storm damage charges |
|
(0.1 |
)% |
|
|
— |
% |
|
|
|
|
|||
Long-term compensation charges |
|
— |
% |
|
|
(0.2 |
)% |
|
|
|
|
|||
Total effect of adjustments |
|
1.0 |
% |
|
|
0.2 |
% |
|
|
|
||||
Adjusted: |
|
|
|
|
|
|
||||||||
Total adjusted SG&A expenses as a % of gross profit |
|
65.6 |
% |
|
|
60.1 |
% |
|
|
(550 |
) |
bps |
||
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Total gross profit |
$ |
2,033.6 |
|
|
$ |
2,125.1 |
|
|
$ |
(91.5 |
) |
|
(4 |
)% |
Non-GAAP Reconciliation - EchoPark Segment - SG&A Expenses |
||||||||||||||
|
Three Months Ended |
|
Better / (Worse) |
|||||||||||
|
2023 |
|
2022 |
|
Change |
|
% Change |
|||||||
|
(In millions) |
|||||||||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Compensation |
$ |
26.9 |
|
|
$ |
35.8 |
|
|
$ |
8.9 |
|
25 |
% |
|
Advertising |
|
9.6 |
|
|
|
11.6 |
|
|
|
2.0 |
|
|
17 |
% |
Rent |
|
1.0 |
|
|
|
2.2 |
|
|
|
1.2 |
|
|
55 |
% |
Other |
|
10.5 |
|
|
|
12.7 |
|
|
|
2.2 |
|
|
17 |
% |
Total SG&A expenses |
$ |
48.0 |
|
|
$ |
62.3 |
|
|
$ |
14.3 |
|
|
23 |
% |
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
|||||||
Compensation |
|
62.8 |
% |
|
|
87.9 |
% |
|
|
2,510 |
|
bps |
||
Advertising |
|
22.5 |
% |
|
|
28.4 |
% |
|
|
590 |
|
bps |
||
Rent |
|
2.3 |
% |
|
|
5.3 |
% |
|
|
300 |
|
bps |
||
Other |
|
24.7 |
% |
|
|
31.2 |
% |
|
|
650 |
|
bps |
||
Total SG&A expenses as a % of gross profit |
|
112.3 |
% |
|
|
152.8 |
% |
|
|
4,050 |
|
bps |
||
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Total gross profit |
$ |
42.8 |
|
|
$ |
40.8 |
|
|
$ |
2.0 |
|
|
5 |
% |
Non-GAAP Reconciliation - EchoPark Segment - SG&A Expenses (Continued) |
||||||||||||||
|
Twelve Months Ended |
|
Better / (Worse) |
|||||||||||
|
2023 |
|
2022 |
|
Change |
|
% Change |
|||||||
|
(In millions) |
|||||||||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Compensation |
$ |
132.0 |
|
|
$ |
148.0 |
|
|
$ |
16.0 |
|
|
11 |
% |
Advertising |
|
49.9 |
|
|
|
58.0 |
|
|
|
8.1 |
|
|
14 |
% |
Rent |
|
6.3 |
|
|
|
8.5 |
|
|
|
2.2 |
|
|
26 |
% |
Other |
|
58.8 |
|
|
|
55.3 |
|
|
|
(3.5 |
) |
|
(6 |
)% |
Total SG&A expenses |
$ |
247.0 |
|
|
$ |
269.8 |
|
|
$ |
22.8 |
|
|
8 |
% |
Adjustments: |
|
|
|
|
|
|
|
|||||||
Acquisition and disposition-related gain (loss) |
$ |
(0.3 |
) |
|
$ |
— |
|
|
|
|
|
|||
Lease exit charges |
|
(4.3 |
) |
|
|
— |
|
|
|
|
|
|||
Severance and long-term compensation charges |
|
(5.1 |
) |
|
|
— |
|
|
|
|
|
|||
Total SG&A adjustments |
$ |
(9.7 |
) |
|
$ |
— |
|
|
|
|
|
|||
Adjusted: |
|
|
|
|
|
|
|
|||||||
Total adjusted SG&A expenses |
$ |
237.3 |
|
|
$ |
269.8 |
|
|
$ |
32.5 |
|
|
12 |
% |
Reported: |
|
|
|
|
|
|
|
|||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
|||||||
Compensation |
|
81.6 |
% |
|
|
84.5 |
% |
|
|
290 |
|
bps |
||
Advertising |
|
30.9 |
% |
|
|
33.1 |
% |
|
|
220 |
|
bps |
||
Rent |
|
3.9 |
% |
|
|
4.9 |
% |
|
|
100 |
|
bps |
||
Other |
|
36.3 |
% |
|
|
31.6 |
% |
|
|
(470 |
) |
bps |
||
Total SG&A expenses as a % of gross profit |
|
152.7 |
% |
|
|
154.1 |
% |
|
|
140 |
|
bps |
||
Adjustments: |
|
|
|
|
|
|
||||||||
Acquisition and disposition-related gain (loss) |
|
(0.4 |
)% |
|
|
— |
% |
|
|
|
||||
Hail and storm damage charges |
|
— |
% |
|
|
— |
% |
|
|
|
|
|||
Lease exit charges |
|
(6.4 |
)% |
|
|
— |
% |
|
|
|
|
|||
Severance and long-term compensation charges |
|
(7.6 |
)% |
|
|
— |
% |
|
|
|
||||
Total effect of adjustments |
|
(14.5 |
)% |
|
|
— |
% |
|
|
|
||||
Adjusted: |
|
|
|
|
|
|
||||||||
Total adjusted SG&A expenses as a % of gross profit |
|
138.2 |
% |
|
|
154.1 |
% |
|
|
1,590 |
|
bps |
||
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Total gross profit |
$ |
161.8 |
|
|
$ |
175.1 |
|
|
$ |
(13.3 |
) |
|
(8 |
)% |
Adjustments: |
|
|
|
|
|
|
|
|||||||
Used vehicle inventory adjustment |
$ |
10.0 |
|
|
$ |
— |
|
|
|
|
|
|||
Total adjustments |
$ |
10.0 |
|
|
$ |
— |
|
|
|
|
|
|||
Adjusted: |
|
|
|
|
|
|
|
|||||||
Total adjusted gross profit |
$ |
171.8 |
|
|
$ |
175.1 |
|
|
$ |
(3.3 |
) |
|
(2 |
)% |
Non-GAAP Reconciliation - Powersports Segment - SG&A Expenses |
||||||||||||||
|
Three Months Ended |
|
Better / (Worse) |
|||||||||||
|
2023 |
|
2022 |
|
Change |
|
% Change |
|||||||
|
(In millions) |
|||||||||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Compensation |
$ |
6.7 |
|
|
$ |
4.1 |
|
|
$ |
(2.6 |
) |
|
(63 |
)% |
Advertising |
|
0.4 |
|
|
|
0.3 |
|
|
|
(0.1 |
) |
|
(33 |
)% |
Rent |
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
% |
Other |
|
2.1 |
|
|
|
1.5 |
|
|
|
(0.6 |
) |
|
(40 |
)% |
Total SG&A expenses |
$ |
9.2 |
|
|
$ |
5.9 |
|
|
$ |
(3.3 |
) |
|
(56 |
)% |
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
|||||||
Compensation |
|
96.2 |
% |
|
|
47.9 |
% |
|
|
(4,830 |
) |
bps |
||
Advertising |
|
5.2 |
% |
|
|
3.9 |
% |
|
|
(130 |
) |
bps |
||
Rent |
|
0.7 |
% |
|
|
0.4 |
% |
|
|
(30 |
) |
bps |
||
Other |
|
29.5 |
% |
|
|
16.2 |
% |
|
|
(1,330 |
) |
bps |
||
Total SG&A expenses as a % of gross profit |
|
131.6 |
% |
|
|
68.4 |
% |
|
|
(6,320 |
) |
bps |
||
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Total gross profit |
$ |
7.0 |
|
|
$ |
8.7 |
|
|
$ |
(1.7 |
) |
|
(20 |
)% |
|
Twelve Months Ended |
|
Better / (Worse) |
|||||||||||
|
2023 |
|
2022 |
|
Change |
|
% Change |
|||||||
|
(In millions) |
|||||||||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Compensation |
$ |
27.7 |
|
|
$ |
8.9 |
|
|
$ |
(18.8 |
) |
|
(211 |
)% |
Advertising |
|
1.8 |
|
|
|
0.6 |
|
|
|
(1.2 |
) |
|
(200 |
)% |
Rent |
|
(0.5 |
) |
|
|
— |
|
|
|
0.5 |
|
|
100 |
% |
Other |
|
9.9 |
|
|
|
2.8 |
|
|
|
(7.1 |
) |
|
(254 |
)% |
Total SG&A expenses |
$ |
38.9 |
|
|
$ |
12.3 |
|
|
$ |
(26.6 |
) |
|
(216 |
)% |
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
SG&A expenses as a % of gross profit: |
|
|
|
|
|
|
|
|||||||
Compensation |
|
55.0 |
% |
|
|
52.9 |
% |
|
|
(210 |
) |
bps |
||
Advertising |
|
3.5 |
% |
|
|
3.4 |
% |
|
|
(10 |
) |
bps |
||
Rent |
|
(1.0 |
)% |
|
|
0.2 |
% |
|
|
120 |
|
bps |
||
Other |
|
19.7 |
% |
|
|
16.9 |
% |
|
|
(280 |
) |
bps |
||
Total SG&A expenses as a % of gross profit |
|
77.2 |
% |
|
|
73.4 |
% |
|
|
(380 |
) |
bps |
||
|
|
|
|
|
|
|
|
|||||||
Reported: |
|
|
|
|
|
|
|
|||||||
Total gross profit |
$ |
50.3 |
|
|
$ |
16.8 |
|
|
$ |
33.5 |
|
|
199 |
% |
Non-GAAP Reconciliation - Franchised Dealerships Segment - Income (Loss) Before Taxes and Segment Income (Loss) |
|||||||||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||||||
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||||||
|
(In millions) |
||||||||||||||||||||
Reported: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) before taxes |
$ |
89.8 |
|
$ |
53.9 |
|
|
67 |
% |
|
$ |
447.0 |
|
|
$ |
526.1 |
|
|
(15 |
)% |
|
Add: impairment charges |
|
1.0 |
|
|
|
115.5 |
|
|
|
|
|
1.0 |
|
|
|
115.5 |
|
|
|
||
Segment income (loss) |
$ |
90.8 |
|
|
$ |
169.4 |
|
|
(46 |
)% |
|
$ |
448.0 |
|
|
$ |
641.6 |
|
|
(30 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Acquisition and disposition-related (gain) loss |
$ |
— |
|
|
$ |
(9.1 |
) |
|
|
|
$ |
(20.9 |
) |
|
$ |
(9.1 |
) |
|
|
||
Hail and storm damage charges |
|
— |
|
|
|
— |
|
|
|
|
|
1.9 |
|
|
|
— |
|
|
|
||
Long-term compensation charges |
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
4.4 |
|
|
|
||
Total pre-tax items of interest |
$ |
— |
|
|
$ |
(9.1 |
) |
|
|
|
$ |
(19.0 |
) |
|
$ |
(4.7 |
) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment income (loss) |
$ |
90.8 |
|
|
$ |
160.3 |
|
|
(43 |
)% |
|
$ |
429.0 |
|
|
$ |
636.9 |
|
|
(33 |
)% |
Non-GAAP Reconciliation - EchoPark Segment - Income (Loss) Before Taxes and Segment Income (Loss) |
|||||||||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||||||
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||||||
|
(In millions) |
||||||||||||||||||||
Reported: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) before taxes |
$ |
(31.6 |
) |
|
$ |
(238.2 |
) |
|
87 |
% |
|
$ |
(210.8 |
) |
|
$ |
(338.8 |
) |
|
38 |
% |
Add: impairment charges |
|
15.7 |
|
|
|
204.9 |
|
|
|
|
|
78.3 |
|
|
|
204.9 |
|
|
|
||
Segment income (loss) |
$ |
(15.9 |
) |
|
$ |
(33.3 |
) |
|
52 |
% |
|
$ |
(132.5 |
) |
|
$ |
(133.9 |
) |
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Acquisition and disposition-related (gain) loss |
$ |
— |
|
|
$ |
— |
|
|
|
|
$ |
0.3 |
|
|
$ |
— |
|
|
|
||
Lease exit charges |
|
— |
|
|
|
— |
|
|
|
|
|
4.3 |
|
|
|
— |
|
|
|
||
Severance and long-term compensation charges |
|
— |
|
|
|
— |
|
|
|
|
|
5.1 |
|
|
|
— |
|
|
|
||
Used vehicle inventory valuation adjustment |
|
— |
|
|
|
— |
|
|
|
|
|
10.0 |
|
|
|
— |
|
|
|
||
Total pre-tax adjustments |
$ |
— |
|
|
$ |
— |
|
|
|
|
$ |
19.7 |
|
|
$ |
— |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment income (loss) |
$ |
(15.9 |
) |
|
$ |
(33.3 |
) |
|
52 |
% |
|
$ |
(112.8 |
) |
|
$ |
(133.9 |
) |
|
16 |
% |
Non-GAAP Reconciliation - Powersports Segment - Income (Loss) Before Taxes and Segment Income (Loss)
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||||||
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||||||
|
(In millions) |
||||||||||||||||||||
Reported: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) before taxes |
$ |
(3.5 |
) |
|
$ |
1.8 |
|
(294 |
)% |
|
$ |
5.7 |
|
$ |
2.7 |
|
111 |
% |
|||
Add: impairment charges |
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
||
Segment income (loss) |
$ |
(3.5 |
) |
|
$ |
1.8 |
|
|
(294 |
)% |
|
$ |
5.7 |
|
|
$ |
2.7 |
|
|
111 |
% |
Non-GAAP Reconciliation - Consolidated - Net Income (Loss) and Diluted Earnings (Loss) Per Share |
|||||||||||||||||||||
|
Three Months Ended |
|
Three Months Ended |
||||||||||||||||||
|
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(1), and diluted earnings (loss) per share |
34.8 |
|
$ |
38.7 |
|
|
$ |
1.11 |
|
36.5 |
|
$ |
(190.9 |
) |
|
$ |
(5.22 |
) |
|||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Acquisition and disposition-related (gain) loss |
|
|
$ |
— |
|
|
|
|
|
|
$ |
(9.1 |
) |
|
|
||||||
Impairment charges |
|
|
|
16.7 |
|
|
|
|
|
|
|
320.4 |
|
|
|
||||||
Total pre-tax items of interest |
|
|
$ |
16.7 |
|
|
|
|
|
|
$ |
311.3 |
|
|
|
||||||
Tax effect of above items |
|
|
|
(4.3 |
) |
|
|
|
|
|
|
(22.6 |
) |
|
|
||||||
Non-recurring tax items |
|
|
|
5.8 |
|
|
|
|
|
|
|
— |
|
|
|
||||||
Adjusted net income (loss), diluted shares, and diluted earnings (loss) per share |
34.8 |
|
|
$ |
56.9 |
|
|
$ |
1.63 |
|
|
37.4 |
|
|
$ |
97.8 |
|
|
$ |
2.61 |
|
(1) Basic weighted-average common shares outstanding used for the three months ended |
|
Twelve Months Ended |
|
Twelve Months Ended |
||||||||||||||||||
|
Weighted- Average Shares |
|
Net Income (Loss) |
|
Per Share Amount |
|
Weighted- Average Shares |
|
Net Income (Loss) |
|
Per Share Amount |
||||||||||
|
(In millions, except per share amounts) |
||||||||||||||||||||
Reported net income (loss), diluted shares, and diluted earnings (loss) per share |
35.9 |
|
$ |
178.2 |
|
|
$ |
4.97 |
|
39.7 |
|
$ |
88.5 |
|
|
$ |
2.23 |
||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Acquisition and disposition-related (gain) loss |
|
|
$ |
(20.7 |
) |
|
|
|
|
|
$ |
(9.1 |
) |
|
|
||||||
Hail and storm damage charges |
|
|
|
1.9 |
|
|
|
|
|
|
|
— |
|
|
|
||||||
Impairment charges |
|
|
|
79.3 |
|
|
|
|
|
|
|
320.4 |
|
|
|
||||||
Lease exit charges |
|
|
|
4.3 |
|
|
|
|
|
|
|
— |
|
|
|
||||||
Severance and long-term compensation charges |
|
|
|
5.1 |
|
|
|
|
|
|
|
4.4 |
|
|
|
||||||
Used vehicle inventory valuation adjustment |
|
|
|
10.0 |
|
|
|
|
|
|
|
— |
|
|
|
||||||
Total pre-tax items of interest |
|
|
$ |
79.9 |
|
|
|
|
|
|
$ |
315.7 |
|
|
|
||||||
Tax effect of above items |
|
|
|
(19.9 |
) |
|
|
|
|
|
|
(22.6 |
) |
|
|
||||||
Non-recurring tax items |
|
|
|
5.8 |
|
|
|
|
|
|
|
— |
|
|
|
||||||
Adjusted net income (loss), diluted shares, and diluted earnings (loss) per share |
35.9 |
|
|
$ |
244.0 |
|
|
$ |
6.81 |
|
|
39.7 |
|
|
$ |
381.6 |
|
|
$ |
9.61 |
|
Non-GAAP Reconciliation - Adjusted EBITDA |
|||||||||||||||||||||||||||||||
|
Three Months Ended |
|
Three Months Ended |
||||||||||||||||||||||||||||
|
Franchised Dealerships Segment |
|
EchoPark Segment |
|
Powersports Segment |
|
Total |
|
Franchised Dealerships Segment |
|
EchoPark Segment |
|
Powersports Segment |
|
Total |
||||||||||||||||
|
(In millions) |
||||||||||||||||||||||||||||||
Net income (loss) |
|
|
|
|
|
|
$ |
38.7 |
|
|
|
|
|
|
|
|
$ |
(190.9 |
) |
||||||||||||
Provision for income taxes |
|
|
|
|
|
|
|
16.0 |
|
|
|
|
|
|
|
|
|
8.4 |
|
||||||||||||
Income (loss) before taxes |
$ |
89.8 |
|
$ |
(31.6 |
) |
|
$ |
(3.5 |
) |
|
$ |
54.7 |
|
$ |
53.9 |
|
|
$ |
(238.2 |
) |
|
$ |
1.8 |
|
$ |
(182.5 |
) |
|||
Non-floor plan interest (1) |
|
25.9 |
|
|
|
0.7 |
|
|
|
0.1 |
|
|
|
26.7 |
|
|
|
22.0 |
|
|
|
0.9 |
|
|
|
0.6 |
|
|
|
23.5 |
|
Depreciation and amortization (2) |
|
31.2 |
|
|
|
6.1 |
|
|
|
1.0 |
|
|
|
38.3 |
|
|
|
27.4 |
|
|
|
7.0 |
|
|
|
0.5 |
|
|
|
34.9 |
|
Stock-based compensation expense |
|
6.0 |
|
|
|
— |
|
|
|
— |
|
|
|
6.0 |
|
|
|
3.6 |
|
|
|
— |
|
|
|
— |
|
|
|
3.6 |
|
Impairment charges |
|
1.0 |
|
|
|
15.7 |
|
|
|
— |
|
|
|
16.7 |
|
|
|
115.5 |
|
|
|
204.9 |
|
|
|
— |
|
|
|
320.4 |
|
Acquisition and disposition-related (gain) loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9.2 |
) |
|
|
— |
|
|
|
— |
|
|
|
(9.2 |
) |
Adjusted EBITDA |
$ |
153.9 |
|
|
$ |
(9.1 |
) |
|
$ |
(2.4 |
) |
|
$ |
142.4 |
|
|
$ |
213.2 |
|
|
$ |
(25.4 |
) |
|
$ |
2.9 |
|
|
$ |
190.7 |
|
|
Twelve Months Ended |
|
Twelve Months Ended |
||||||||||||||||||||||||||||
|
Franchised Dealerships Segment |
|
EchoPark Segment |
|
Powersports Segment |
|
Total |
|
Franchised Dealerships Segment |
|
EchoPark Segment |
|
Powersports Segment |
|
Total |
||||||||||||||||
|
(In millions) |
||||||||||||||||||||||||||||||
Net income (loss) |
|
|
|
|
|
|
$ |
178.2 |
|
|
|
|
|
|
|
|
$ |
88.5 |
|
||||||||||||
Provision for income taxes |
|
|
|
|
|
|
|
63.7 |
|
|
|
|
|
|
|
|
|
101.5 |
|
||||||||||||
Income (loss) before taxes |
$ |
447.0 |
|
|
$ |
(210.8 |
) |
|
$ |
5.7 |
|
$ |
241.9 |
|
|
$ |
526.1 |
|
|
$ |
(338.8 |
) |
|
$ |
2.7 |
|
$ |
190.0 |
|
||
Non-floor plan interest (1) |
|
103.2 |
|
|
|
3.2 |
|
|
|
1.7 |
|
|
|
108.1 |
|
|
|
80.0 |
|
|
|
3.7 |
|
|
|
1.0 |
|
|
|
84.7 |
|
Depreciation and amortization (2) |
|
118.8 |
|
|
|
26.6 |
|
|
|
3.4 |
|
|
|
148.8 |
|
|
|
107.0 |
|
|
|
24.8 |
|
|
|
0.9 |
|
|
|
132.7 |
|
Stock-based compensation expense |
|
23.3 |
|
|
|
— |
|
|
|
— |
|
|
|
23.3 |
|
|
|
16.0 |
|
|
|
— |
|
|
|
— |
|
|
|
16.0 |
|
Loss (gain) on exit of leased dealerships |
|
— |
|
|
|
4.3 |
|
|
|
— |
|
|
|
4.3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Impairment charges |
|
1.0 |
|
|
|
78.3 |
|
|
|
— |
|
|
|
79.3 |
|
|
|
115.5 |
|
|
|
204.9 |
|
|
|
— |
|
|
|
320.4 |
|
Severance and long-term compensation charges |
|
— |
|
|
|
5.1 |
|
|
|
— |
|
|
|
5.1 |
|
|
|
4.4 |
|
|
|
— |
|
|
|
— |
|
|
|
4.4 |
|
Acquisition and disposition-related (gain) loss |
|
(20.7 |
) |
|
|
0.3 |
|
|
|
— |
|
|
|
(20.4 |
) |
|
|
(9.7 |
) |
|
|
— |
|
|
|
— |
|
|
|
(9.7 |
) |
Hail and storm damage charges |
|
1.9 |
|
|
|
— |
|
|
|
— |
|
|
|
1.9 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Used vehicle inventory valuation adjustment |
|
— |
|
|
|
10.0 |
|
|
|
— |
|
|
|
10.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted EBITDA |
$ |
674.5 |
|
|
$ |
(83.0 |
) |
|
$ |
10.8 |
|
|
$ |
602.3 |
|
|
$ |
839.3 |
|
|
$ |
(105.4 |
) |
|
$ |
4.6 |
|
|
$ |
738.5 |
|
(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. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240214331605/en/
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