Exhibit 99.1

Sonic Automotive Reports Third Quarter 2019 EPS of $0.66, Up 83%
EchoPark Revenues Up 67.9% and Tracking $1.2 Billion for Full Year 2019
EchoPark Pre-Tax Income Up 138.9%

CHARLOTTE, N.C. – October 24, 2019 – Sonic Automotive, Inc. (NYSE: SAH), one of the nation’s largest automotive retailers, today reported financial results for the third quarter of 2019.

•EchoPark revenues of $312.2 million during the third quarter of 2019, up 67.9% from the third quarter of 2018.
•EchoPark pre-tax profit improved $7.6 million, or 138.9%, to $2.1 million in the third quarter of 2019, compared to a pre-tax loss of $5.5 million in the third quarter of 2018.
•EchoPark generated Adjusted EBITDA* of $6.4 million in the third quarter of 2019, improving by $9.4 million from the third quarter of 2018.
•EchoPark retailed 13,206 pre-owned units during the third quarter of 2019, up 71.6% from the third quarter of 2018.
•Total Sonic consolidated continuing operations earnings per diluted share of $0.66 in the third quarter of 2019, compared to $0.36 in the third quarter of 2018, an 83.3% increase from the third quarter of 2018.
•Total Sonic consolidated all-time quarterly record pre-owned retail unit sales of 42,453 units in the third quarter of 2019.
•Total Sonic same store Fixed Operations gross profit increased $11.4 million in the third quarter of 2019, up 7.3% from the third quarter of 2018.
•Total Sonic consolidated all-time quarterly record F&I gross profit per retail unit of $1,771 in the third quarter of 2019, an increase of $266 per unit from the third quarter of 2018.
•Total Sonic consolidated all-time quarterly record F&I gross profit of $126.8 million in the third quarter of 2019, an increase of 29.3% from the third quarter of 2018.
•SG&A to gross profit ratio of 76.7% in the third quarter of 2019, an improvement of 350 basis points compared to the third quarter of 2018.

* Adjusted EBITDA is a non-GAAP financial measure. The schedules included in this press release reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure.


Third Quarter 2019 Results

Net income from continuing operations for the third quarter of 2019 was $29.2 million, or $0.66 per diluted share. Comparatively, net income from continuing operations for the third quarter of 2018 was $15.3 million, or $0.36 per diluted share. Results reported for the third quarter of 2018 include pre-tax charges totaling $3.1 million related to storm damage, executive transition costs and charges related to the disposal of franchises.

Commentary

David Smith, Sonic’s and EchoPark’s Chief Executive Officer, commented, “Our franchised stores and our EchoPark stores grew pre-tax income in the double and triple digits, respectively. The franchised stores segment increased pre-tax income in the third quarter of 2019 over the prior year quarter by $10.3 million, or 36.8%, while the EchoPark segment increased pre-tax income in the third quarter of 2019 over the prior year quarter by $7.6 million, or 138.9%.”

Mr. Smith continued, “Our operations teams delivered yet another outstanding quarter that resulted in an 83% improvement in earnings per diluted share from continuing operations compared to the third quarter of 2018. Our teams delivered a solid combination of gross profit growth and cost control. Consolidated gross profit grew 7.3% while our SG&A to gross profit ratio improved by 350 basis points. These results were achieved in spite of a challenging new vehicle sales environment where our new vehicle unit sales and related gross profit decreased by 2.8% and $6.3 million, respectively. Our pre-owned, Fixed Operations and F&I results during the quarter exceeded our expectations. We believe these favorable operating trends will continue into the fourth quarter.”

Jeff Dyke, Sonic’s and EchoPark’s President, commented, “Our EchoPark stores had another exceptional quarter. EchoPark grew revenues by 67.9%, gross profit by 107.2% and pre-tax income by 138.9%. As we continue to grow our top-line revenues, a greater amount of incremental gross profit flows through to the bottom line, demonstrating the significant earnings upside potential in this business over the long term. Our path to opening our next EchoPark market in


Long Beach, California is becoming clearer and we anticipate an opening in the latter half of the fourth quarter of this year. We are excited to introduce the EchoPark brand to the California market and look forward to continuing to execute on our plans for EchoPark growth, omni-channel selling and other digital initiatives.”

Dividend

Sonic’s Board of Directors approved a quarterly cash dividend of $0.10 per share payable on January 15, 2020 to all stockholders of record on December 13, 2019.

Third Quarter 2019 Earnings Conference Call

Senior management will host a conference call today at 11:00 A.M. (Eastern) to discuss the quarter’s results. To access the live broadcast of the call over the Internet go to: www.sonicautomotive.com, then click on “Our Company,” then “Investor Relations,” then the “Earnings Conference Calls” link at the bottom of the page.

Presentation materials for the conference call will be accessible beginning the morning of the conference call on the Company’s website at www.sonicautomotive.com by clicking on the “Investor Relations” tab under “Our Company” and choosing the “Webcasts & Presentations” link at the bottom of the page.

The conference call will also be available live by dialing in 10 minutes prior to the start of the call at:

Domestic: (877) 450-3867
International: (706) 643-0958
Conference ID: 5598838

A conference call replay will be available one hour following the call for seven days and can be accessed by calling:

Domestic: (855) 859-2056
International: (404) 537-3406
Conference ID: 5598838

About Sonic Automotive

Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, N.C., is one of the nation’s largest automotive retailers. Sonic can be reached on the web at www.sonicautomotive.com. More information about EchoPark Automotive can be found at www.echopark.com.

Forward-Looking Statements

Included herein are forward-looking statements. 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, EchoPark revenue estimates, EchoPark unit sales volume, EchoPark profit estimates, economic conditions in the markets in which we operate, new and used vehicle industry sales volume, the success of our operational strategies, the rate and timing of overall economic recovery or decline, and the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and the Company’s other periodic reports and information filed with the Securities and Exchange Commission (the “SEC”). The Company does not undertake any obligation to update forward-looking information, except as required under federal securities laws and the rules and regulations of the SEC.

Non-GAAP Financial Measures

This press release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as Adjusted EBITDA. As required by SEC rules, the Company provides reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures. 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.


Contact:Heath Byrd, Executive Vice President and Chief Financial Officer (704) 566-2400
C.G. Saffer, Vice President and Chief Accounting Officer (704) 566-2439


Sonic Automotive, Inc.
Results of Operations (Unaudited)

Results of Operations
Three Months Ended September 30,Better / (Worse)Nine Months Ended September 30,Better / (Worse)
20192018% Change20192018% Change
(In thousands, except per share amounts)
Revenues:
New vehicles$1,258,018  $1,235,094  1.9 %$3,529,106  $3,654,510  (3.4)%
Used vehicles914,272  745,998  22.6 %2,620,264  2,217,616  18.2 %
Wholesale vehicles51,542  48,578  6.1 %156,351  167,726  (6.8)%
Total vehicles2,223,832  2,029,670  9.6 %6,305,721  6,039,852  4.4 %
Parts, service and collision repair352,047  343,118  2.6 %1,048,789  1,041,630  0.7 %
Finance, insurance and other, net126,841  98,061  29.3 %351,429  295,890  18.8 %
Total revenues2,702,720  2,470,849  9.4 %7,705,939  7,377,372  4.5 %
Cost of Sales:
New vehicles(1,202,710) (1,173,453) 2.5 %(3,363,603) (3,478,802) (3.3)%
Used vehicles(877,444) (710,681) 23.5 %(2,509,699) (2,108,219) 19.0 %
Wholesale vehicles(52,648) (49,877) 5.6 %(159,437) (176,806) (9.8)%
Total vehicles(2,132,802) (1,934,011) 10.3 %(6,032,739) (5,763,827) 4.7 %
Parts, service and collision repair(183,107) (176,302) 3.9 %(546,067) (538,135) 1.5 %
Total cost of sales(2,315,909) (2,110,313) 9.7 %(6,578,806) (6,301,962) 4.4 %
Gross profit386,811  360,536  7.3 %1,127,133  1,075,410  4.8 %
Selling, general and administrative expenses(296,826) (289,022) (2.7)%(838,453) (871,410) 3.8 %
Impairment charges(1,124) —  (100.0)%(3,076) (13,961) 78.0 %
Depreciation and amortization(23,665) (23,377) (1.2)%(70,120) (71,067) 1.3 %
Operating income (loss)65,196  48,137  35.4 %215,484  118,972  81.1 %
Other income (expense):
Interest expense, floor plan(11,638) (12,192) 4.5 %(37,382) (34,815) (7.4)%
Interest expense, other, net(13,013) (13,313) 2.3 %(39,494) (40,144) 1.6 %
Other income (expense), net(5) —  (100.0)%90  107  15.9 %
Total other income (expense)(24,656) (25,505) 3.3 %(76,786) (74,852) (2.6)%
Income (loss) from continuing operations before taxes40,540  22,632  79.1 %138,698  44,120  214.4 %
Provision for income taxes for continuing operations - benefit (expense)(11,372) (7,331) (55.1)%(40,430) (13,711) (194.9)%
Income (loss) from continuing operations29,168  15,301  90.6 %98,268  30,409  223.2 %
Discontinued operations:
Income (loss) from discontinued operations before taxes(223) (252) 11.5 %(616) (797) 22.7 %
Provision for income taxes for discontinued operations - benefit (expense)65  69  (5.8)%179  218  (17.9)%
Income (loss) from discontinued operations(158) (183) 13.7 %(437) (579) 24.5 %
Net income (loss)$29,010  $15,118  91.9 %$97,831  $29,830  228.0 %
Basic earnings (loss) per common share:
Earnings (loss) per share from continuing operations$0.68  $0.36  88.9 %$2.28  $0.71  221.1 %
Earnings (loss) per share from discontinued operations(0.01) (0.01) — %(0.01) (0.01) — %
Earnings (loss) per common share$0.67  $0.35  91.4 %$2.27  $0.70  224.3 %
Weighted-average common shares outstanding43,078  42,673  (0.9)%42,995  42,708  (0.7)%
Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations$0.66  $0.36  83.3 %$2.26  $0.71  218.3 %
Earnings (loss) per share from discontinued operations—  (0.01) 100.0 %(0.01) (0.02) 50.0 %
Earnings (loss) per common share$0.66  $0.35  88.6 %$2.25  $0.69  226.1 %
Weighted-average common shares outstanding44,203  42,994  (2.8)%43,456  42,964  (1.1)%
Dividends declared per common share$0.10  $0.06  66.7 %$0.30  $0.18  66.7 %






New Vehicles - Consolidated
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Reported new vehicle:
Revenue$1,258,018  $1,235,094  $22,924  1.9 %
Gross profit$55,308  $61,641  $(6,333) (10.3)%
Unit sales30,147  31,009  (862) (2.8)%
Revenue per unit$41,729  $39,830  $1,899  4.8 %
Gross profit per unit$1,835  $1,988  $(153) (7.7)%
Gross profit as a % of revenue4.4 %5.0 %(60) bps
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Reported new vehicle:
Revenue$3,529,106  $3,654,510  $(125,404) (3.4)%
Gross profit$165,503  $175,708  $(10,205) (5.8)%
Unit sales83,540  91,386  (7,846) (8.6)%
Revenue per unit$42,245  $39,990  $2,255  5.6 %
Gross profit per unit$1,981  $1,923  $58  3.0 %
Gross profit as a % of revenue4.7 %4.8 %(10) bps
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Same store new vehicle:
Revenue$1,253,233  $1,174,705  $78,528  6.7 %
Gross profit$54,823  $58,425  $(3,602) (6.2)%
Unit sales30,046  29,139  907  3.1 %
Revenue per unit$41,710  $40,314  $1,396  3.5 %
Gross profit per unit$1,825  $2,005  $(180) (9.0)%
Gross profit as a % of revenue4.4 %5.0 %(60) bps
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Same store new vehicle:
Revenue$3,487,153  $3,429,897  $57,256  1.7 %
Gross profit$163,128  $167,188  $(4,060) (2.4)%
Unit sales82,301  84,352  (2,051) (2.4)%
Revenue per unit$42,371  $40,662  $1,709  4.2 %
Gross profit per unit$1,982  $1,982  $—  — %
Gross profit as a % of revenue4.7 %4.9 %(20) bps












Used Vehicles - Consolidated
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Reported used vehicle:
Revenue$914,272  $745,998  $168,274  22.6 %
Gross profit$36,828  $35,317  $1,511  4.3 %
Unit sales42,453  34,952  7,501  21.5 %
Revenue per unit$21,536  $21,343  $193  0.9 %
Gross profit per unit$868  $1,010  $(142) (14.1)%
Gross profit as a % of revenue4.0 %4.7 %(70) bps
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Reported used vehicle:
Revenue$2,620,264  $2,217,616  $402,648  18.2 %
Gross profit$110,565  $109,397  $1,168  1.1 %
Unit sales122,374  104,470  17,904  17.1 %
Revenue per unit$21,412  $21,227  $185  0.9 %
Gross profit per unit$904  $1,047  $(143) (13.7)%
Gross profit as a % of revenue4.2 %4.9 %(70) bps
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Same store used vehicle:
Revenue$855,900  $713,677  $142,223  19.9 %
Gross profit$33,764  $33,088  $676  2.0 %
Unit sales39,521  33,128  6,393  19.3 %
Revenue per unit$21,657  $21,543  $114  0.5 %
Gross profit per unit$854  $999  $(145) (14.5)%
Gross profit as a % of revenue3.9 %4.6 %(70) bps
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Same store used vehicle:
Revenue$2,440,633  $2,102,425  $338,208  16.1 %
Gross profit$101,638  $100,248  $1,390  1.4 %
Unit sales113,224  98,028  15,196  15.5 %
Revenue per unit$21,556  $21,447  $109  0.5 %
Gross profit per unit$898  $1,023  $(125) (12.2)%
Gross profit as a % of revenue4.2 %4.8 %(60) bps
















Wholesale Vehicles - Consolidated
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Reported wholesale vehicle:
Revenue$51,542  $48,578  $2,964  6.1 %
Gross profit (loss) $(1,106) $(1,299) $193  14.9 %
Unit sales8,961  7,831  1,130  14.4 %
Revenue per unit$5,752  $6,203  $(451) (7.3)%
Gross profit (loss) per unit$(123) $(166) $43  25.9 %
Gross profit (loss) as a % of revenue(2.1)%(2.7)%60  bps
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Reported wholesale vehicle:
Revenue$156,351  $167,726  $(11,375) (6.8)%
Gross profit (loss)$(3,086) $(9,080) $5,994  66.0 %
Unit sales26,254  25,953  301  1.2 %
Revenue per unit$5,955  $6,463  $(508) (7.9)%
Gross profit (loss) per unit$(118) $(350) $232  66.3 %
Gross profit (loss) as a % of revenue(2.0)%(5.4)%340  bps
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Same store wholesale vehicle:
Revenue$49,791  $45,144  $4,647  10.3 %
Gross profit (loss)$(1,009) $(1,324) $315  23.8 %
Unit sales8,559  7,173  1,386  19.3 %
Revenue per unit$5,817  $6,294  $(477) (7.6)%
Gross profit (loss) per unit$(118) $(185) $67  36.2 %
Gross profit (loss) as a % of revenue(2.0)%(2.9)%90  bps
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Same store wholesale vehicle:
Revenue$150,890  $152,934  $(2,044) (1.3)%
Gross profit (loss)$(2,746) $(8,224) $5,478  66.6 %
Unit sales25,081  23,367  1,714  7.3 %
Revenue per unit$6,016  $6,545  $(529) (8.1)%
Gross profit (loss) per unit$(109) $(352) $243  69.0 %
Gross profit (loss) as a % of revenue(1.8)%(5.4)%360  bps
















Fixed Operations - Consolidated
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands)
Reported:
Revenue
Customer pay$140,146  $139,642  $504  0.4 %
Warranty69,894  66,730  3,164  4.7 %
Wholesale parts38,345  39,419  (1,074) (2.7)%
Internal, sublet and other103,662  97,327  6,335  6.5 %
Total$352,047  $343,118  $8,929  2.6 %
Gross profit
Customer pay$76,625  $74,994  $1,631  2.2 %
Warranty38,235  38,563  (328) (0.9)%
Wholesale parts6,651  6,784  (133) (2.0)%
Internal, sublet and other47,429  46,475  954  2.1 %
Total$168,940  $166,816  $2,124  1.3 %
Gross profit as a % of revenue
Customer pay54.7 %53.7 %100  bps
Warranty54.7 %57.8 %(310) bps
Wholesale parts17.3 %17.2 %10  bps
Internal, sublet and other45.8 %47.8 %(200) bps
Total48.0 %48.6 %(60) bps
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands)
Reported:
Revenue
Customer pay$419,980  $422,348  $(2,368) (0.6)%
Warranty208,676  198,219  10,457  5.3 %
Wholesale parts117,669  122,763  (5,094) (4.1)%
Internal, sublet and other302,464  298,300  4,164  1.4 %
Total$1,048,789  $1,041,630  $7,159  0.7 %
Gross profit
Customer pay$228,604  $226,443  $2,161  1.0 %
Warranty115,682  112,335  3,347  3.0 %
Wholesale parts20,319  20,949  (630) (3.0)%
Internal, sublet and other138,117  143,768  (5,651) (3.9)%
Total$502,722  $503,495  $(773) (0.2)%
Gross profit as a % of revenue
Customer pay54.4 %53.6 %80  bps
Warranty55.4 %56.7 %(130) bps
Wholesale parts17.3 %17.1 %20  bps
Internal, sublet and other45.7 %48.2 %(250) bps
Total47.9 %48.3 %(40) bps










Fixed Operations - Consolidated
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands)
Same Store:
Revenue
Customer pay$139,807  $131,535  $8,272  6.3 %
Warranty69,438  64,048  5,390  8.4 %
Wholesale parts38,018  38,016  2  — %
Internal, sublet and other101,610  92,849  8,761  9.4 %
Total$348,873  $326,448  $22,425  6.9 %
Gross profit
Customer pay$76,453  $70,227  $6,226  8.9 %
Warranty37,982  35,569  2,413  6.8 %
Wholesale parts6,594  6,468  126  1.9 %
Internal, sublet and other47,061  44,410  2,651  6.0 %
Total$168,090  $156,674  $11,416  7.3 %
Gross profit as a % of revenue
Customer pay54.7 %53.4 %130  bps
Warranty54.7 %55.5 %(80) bps
Wholesale parts17.3 %17.0 %30  bps
Internal, sublet and other46.3 %47.8 %(150) bps
Total48.2 %48.0 %20  bps
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands)
Same Store:
Revenue
Customer pay$414,704  $393,934  $20,770  5.3 %
Warranty206,691  190,080  16,611  8.7 %
Wholesale parts116,148  116,866  (718) (0.6)%
Internal, sublet and other294,735  281,068  13,667  4.9 %
Total$1,032,278  $981,948  $50,330  5.1 %
Gross profit
Customer pay$225,671  $210,013  $15,658  7.5 %
Warranty114,596  106,074  8,522  8.0 %
Wholesale parts20,019  19,770  249  1.3 %
Internal, sublet and other135,472  134,944  528  0.4 %
Total$495,758  $470,801  $24,957  5.3 %
Gross profit as a % of revenue
Customer pay54.4 %53.3 %110  bps
Warranty55.4 %55.8 %(40) bps
Wholesale parts17.2 %16.9 %30  bps
Internal, sublet and other46.0 %48.0 %(200) bps
Total48.0 %47.9 %10  bps












F&I - Consolidated
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Reported:
Revenue$126,841  $98,061  $28,780  29.3 %
Unit sales71,636  65,168  6,468  9.9 %
Gross profit per retail unit (excludes fleet)$1,771  $1,505  $266  17.7 %
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Reported:
Revenue$351,429  $295,890  $55,539  18.8 %
Unit sales 204,230  194,322  9,908  5.1 %
Gross profit per retail unit (excludes fleet)$1,721  $1,523  $198  13.0 %
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Same Store:
Revenue$116,881  $92,376  $24,505  26.5 %
Unit sales68,603  61,474  7,129  11.6 %
Gross profit per retail unit (excludes fleet)$1,704  $1,503  $201  13.4 %
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Same Store:
Revenue$322,130  $272,688  $49,442  18.1 %
Unit sales193,841  180,891  12,950  7.2 %
Gross profit per retail unit (excludes fleet)$1,662  $1,507  $155  10.3 %

















New Vehicles - Franchised Dealership Segment
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Reported new vehicle:
Revenue$1,258,018  $1,235,094  $22,924  1.9 %
Gross profit$55,308  $61,641  $(6,333) (10.3)%
Unit sales30,147  31,009  (862) (2.8)%
Revenue per unit$41,729  $39,830  $1,899  4.8 %
Gross profit per unit$1,835  $1,988  $(153) (7.7)%
Gross profit as a % of revenue4.4 %5.0 %(60) bps
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Reported new vehicle:
Revenue$3,529,106  $3,654,510  $(125,404) (3.4)%
Gross profit$165,503  $175,708  $(10,205) (5.8)%
Unit sales83,540  91,386  (7,846) (8.6)%
Revenue per unit$42,245  $39,990  $2,255  5.6 %
Gross profit per unit$1,981  $1,923  $58  3.0 %
Gross profit as a % of revenue4.7 %4.8 %(10) bps
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Same store new vehicle:
Revenue$1,253,233  $1,174,705  $78,528  6.7 %
Gross profit$54,823  $58,425  $(3,602) (6.2)%
Unit sales30,046  29,139  907  3.1 %
Revenue per unit$41,710  $40,314  $1,396  3.5 %
Gross profit per unit$1,825  $2,005  $(180) (9.0)%
Gross profit as a % of revenue4.4 %5.0 %(60) bps
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Same store new vehicle:
Revenue$3,487,153  $3,429,897  $57,256  1.7 %
Gross profit$163,128  $167,188  $(4,060) (2.4)%
Unit sales82,301  84,352  (2,051) (2.4)%
Revenue per unit$42,371  $40,662  $1,709  4.2 %
Gross profit per unit$1,982  $1,982  $—  — %
Gross profit as a % of revenue4.7 %4.9 %(20) bps








Used Vehicles - Franchised Dealership Segment
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Reported used vehicle:
Revenue$648,006  $585,300  $62,706  10.7 %
Gross profit$37,623  $37,480  $143  0.4 %
Unit sales29,247  27,254  1,993  7.3 %
Revenue per unit$22,156  $21,476  $680  3.2 %
Gross profit per unit$1,286  $1,375  $(89) (6.5)%
Gross profit as a % of revenue5.8 %6.4 %(60) bps
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Reported used vehicle:
Revenue$1,889,045  $1,794,403  $94,642  5.3 %
Gross profit$111,815  $112,965  $(1,150) (1.0)%
Unit sales85,530  83,795  1,735  2.1 %
Revenue per unit$22,086  $21,414  $672  3.1 %
Gross profit per unit$1,307  $1,348  $(41) (3.0)%
Gross profit as a % of revenue5.9 %6.3 %(40) bps
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Same store used vehicle:
Revenue$643,945  $564,190  $79,755  14.1 %
Gross profit$35,873  $34,665  $1,208  3.5 %
Unit sales29,050  26,067  2,983  11.4 %
Revenue per unit$22,167  $21,644  $523  2.4 %
Gross profit per unit$1,235  $1,330  $(95) (7.1)%
Gross profit as a % of revenue5.6 %6.1 %(50) bps
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Same store used vehicle:
Revenue$1,866,976  $1,713,247  $153,729  9.0 %
Gross profit$105,904  $102,760  $3,144  3.1 %
Unit sales84,374  79,173  5,201  6.6 %
Revenue per unit$22,127  $21,639  $488  2.3 %
Gross profit per unit$1,255  $1,298  $(43) (3.3)%
Gross profit as a % of revenue5.7 %6.0 %(30) bps



Wholesale Vehicles - Franchised Dealership Segment
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Reported wholesale vehicle:
Revenue$44,517  $43,381  $1,136  2.6 %
Gross profit (loss) $(971) $(1,260) $289  22.9 %
Unit sales7,123  6,906  217  3.1 %
Revenue per unit$6,250  $6,282  $(32) (0.5)%
Gross profit (loss) per unit$(136) $(182) $46  25.3 %
Gross profit (loss) as a % of revenue(2.2)%(2.9)%70  bps
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Reported wholesale vehicle:
Revenue$140,770  $148,037  $(7,267) (4.9)%
Gross profit (loss)$(2,845) $(9,708) $6,863  70.7 %
Unit sales22,231  22,454  (223) (1.0)%
Revenue per unit$6,332  $6,593  $(261) (4.0)%
Gross profit (loss) per unit$(128) $(432) $304  70.4 %
Gross profit (loss) as a % of revenue(2.0)%(6.6)%460  bps
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Same store wholesale vehicle:
Revenue$44,219  $41,526  $2,693  6.5 %
Gross profit (loss)$(890) $(1,239) $349  28.2 %
Unit sales7,088  6,553  535  8.2 %
Revenue per unit$6,239  $6,337  $(98) (1.5)%
Gross profit (loss) per unit$(126) $(189) $63  33.3 %
Gross profit (loss) as a % of revenue(2.0)%(3.0)%100  bps
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Same store wholesale vehicle:
Revenue$138,614  $137,838  $776  0.6 %
Gross profit (loss)$(2,531) $(8,849) $6,318  71.4 %
Unit sales21,901  20,758  1,143  5.5 %
Revenue per unit$6,329  $6,640  $(311) (4.7)%
Gross profit (loss) per unit$(116) $(426) $310  72.8 %
Gross profit (loss) as a % of revenue(1.8)%(6.4)%460  bps




Fixed Operations - Franchised Dealership Segment
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands)
Reported:
Revenue
Customer pay$139,969  $139,504  $465  0.3 %
Warranty69,894  66,730  3,164  4.7 %
Wholesale parts38,345  39,419  (1,074) (2.7)%
Internal, sublet and other95,612  93,413  2,199  2.4 %
Total$343,820  $339,066  $4,754  1.4 %
Gross profit
Customer pay$76,607  $74,983  $1,624  2.2 %
Warranty38,235  38,563  (328) (0.9)%
Wholesale parts6,651  6,784  (133) (2.0)%
Internal, sublet and other47,665  45,995  1,670  3.6 %
Total$169,158  $166,325  $2,833  1.7 %
Gross profit as a % of revenue
Customer pay54.7 %53.7 %100  bps
Warranty54.7 %57.8 %(310) bps
Wholesale parts17.3 %17.2 %10  bps
Internal, sublet and other49.9 %49.2 %70  bps
Total49.2 %49.1 %10  bps
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands)
Reported:
Revenue
Customer pay$419,482  $421,484  $(2,002) (0.5)%
Warranty208,676  198,219  10,457  5.3 %
Wholesale parts117,669  122,763  (5,094) (4.1)%
Internal, sublet and other281,555  285,893  (4,338) (1.5)%
Total$1,027,382  $1,028,359  $(977) (0.1)%
Gross profit
Customer pay$228,584  $226,207  $2,377  1.1 %
Warranty115,682  112,335  3,347  3.0 %
Wholesale parts20,319  20,949  (630) (3.0)%
Internal, sublet and other138,726  141,618  (2,892) (2.0)%
Total$503,311  $501,109  $2,202  0.4 %
Gross profit as a % of revenue
Customer pay54.5 %53.7 %80  bps
Warranty55.4 %56.7 %(130) bps
Wholesale parts17.3 %17.1 %20  bps
Internal, sublet and other49.3 %49.5 %(20) bps
Total49.0 %48.7 %30  bps










Fixed Operations - Franchised Dealership Segment
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands)
Same Store:
Revenue
Customer pay$139,683  $131,413  $8,270  6.3 %
Warranty69,438  64,048  5,390  8.4 %
Wholesale parts38,018  38,016  2  — %
Internal, sublet and other95,170  89,303  5,867  6.6 %
Total$342,309  $322,780  $19,529  6.1 %
Gross profit
Customer pay$76,435  $70,218  $6,217  8.9 %
Warranty37,982  35,569  2,413  6.8 %
Wholesale parts6,594  6,468  126  1.9 %
Internal, sublet and other47,266  43,888  3,378  7.7 %
Total$168,277  $156,143  $12,134  7.8 %
Gross profit as a % of revenue
Customer pay54.7 %53.4 %130  bps
Warranty54.7 %55.5 %(80) bps
Wholesale parts17.3 %17.0 %30  bps
Internal, sublet and other49.7 %49.1 %60  bps
Total49.2 %48.4 %80  bps
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands)
Same Store:
Revenue
Customer pay$414,369  $393,478  $20,891  5.3 %
Warranty206,691  190,080  16,611  8.7 %
Wholesale parts116,148  116,866  (718) (0.6)%
Internal, sublet and other278,176  269,831  8,345  3.1 %
Total$1,015,384  $970,255  $45,129  4.7 %
Gross profit
Customer pay$225,651  $209,936  $15,715  7.5 %
Warranty114,596  106,074  8,522  8.0 %
Wholesale parts20,019  19,770  249  1.3 %
Internal, sublet and other135,971  132,937  3,034  2.3 %
Total$496,237  $468,717  $27,520  5.9 %
Gross profit as a % of revenue
Customer pay54.5 %53.4 %110  bps
Warranty55.4 %55.8 %(40) bps
Wholesale parts17.2 %16.9 %30  bps
Internal, sublet and other48.9 %49.3 %(40) bps
Total48.9 %48.3 %60  bps








F&I - Franchised Dealership Segment
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Reported:
Revenue$96,142  $82,089  $14,053  17.1 %
Unit sales58,430  57,470  960  1.7 %
Gross profit per retail unit (excludes fleet)$1,645  $1,428  $217  15.2 %
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Reported:
Revenue$266,171  $254,473  $11,698  4.6 %
Unit sales 167,386  173,647  (6,261) (3.6)%
Gross profit per retail unit (excludes fleet)$1,590  $1,465  $125  8.5 %
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Same Store:
Revenue$92,252  $77,040  $15,212  19.7 %
Unit sales58,132  54,413  3,719  6.8 %
Gross profit per retail unit (excludes fleet)$1,587  $1,416  $171  12.1 %
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Same Store:
Revenue$255,331  $234,720  $20,611  8.8 %
Unit sales164,991  162,036  2,955  1.8 %
Gross profit per retail unit (excludes fleet)$1,548  $1,449  $99  6.8 %




Used Vehicles and F&I - EchoPark Segment
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Reported used vehicle and F&I:
Used vehicle revenue$266,266  $160,698  $105,568  65.7 %
Used vehicle gross profit (loss)$(795) $(2,163) $1,368  63.2 %
Used vehicle unit sales13,206  7,698  5,508  71.6 %
Used vehicle revenue per unit$20,163  $20,875  $(712) (3.4)%
F&I revenue$30,699  $15,972  $14,727  92.2 %
Combined used vehicle gross profit and F&I revenue$29,904  $13,809  $16,095  116.6 %
Total used vehicle and F&I gross profit per unit$2,264  $1,794  $470  26.2 %
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Reported used vehicle:
Used vehicle revenue$731,219  $423,213  $308,006  72.8 %
Used vehicle gross profit (loss)$(1,250) $(3,568) $2,318  65.0 %
Used vehicle unit sales36,844  20,675  16,169  78.2 %
Used vehicle revenue per unit$19,846  $20,470  $(624) (3.0)%
F&I revenue$85,258  $41,417  $43,841  105.9 %
Combined used vehicle gross profit and F&I revenue$84,008  $37,849  $46,159  122.0 %
Total used vehicle and F&I gross profit per unit$2,280  $1,831  $449  24.5 %
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Same store used vehicle:
Used vehicle revenue$211,955  $149,487  $62,468  41.8 %
Used vehicle gross profit (loss)$(2,109) $(1,577) $(532) (33.7)%
Used vehicle unit sales10,471  7,061  3,410  48.3 %
Used vehicle revenue per unit$20,242  $21,171  $(929) (4.4)%
F&I revenue$24,629  $15,336  $9,293  60.6 %
Combined used vehicle gross profit and F&I revenue$22,520  $13,759  $8,761  63.7 %
Total used vehicle and F&I gross profit per unit$2,151  $1,949  $202  10.4 %
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Same store used vehicle:
Used vehicle revenue$573,657  $389,178  $184,479  47.4 %
Used vehicle gross profit (loss)$(4,266) $(2,512) $(1,754) (69.8)%
Used vehicle unit sales28,850  18,855  9,995  53.0 %
Used vehicle revenue per unit$19,884  $20,641  $(757) (3.7)%
F&I revenue$66,799  $37,968  $28,831  75.9 %
Combined used vehicle gross profit and F&I revenue$62,533  $35,456  $27,077  76.4 %
Total used vehicle and F&I gross profit per unit$2,168  $1,880  $288  15.3 %




Wholesale Vehicles - EchoPark Segment
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Reported wholesale vehicle:
Revenue$7,025  $5,197  $1,828  35.2 %
Gross profit (loss) $(135) $(39) $(96) (246.2)%
Unit sales1,838  925  913  98.7 %
Revenue per unit$3,822  $5,618  $(1,796) (32.0)%
Gross profit (loss) per unit$(73) $(42) $(31) (73.8)%
Gross profit (loss) as a % of revenue(1.9)%(0.8)%(110) bps
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Reported wholesale vehicle:
Revenue$15,581  $19,689  $(4,108) (20.9)%
Gross profit (loss)$(241) $628  $(869) (138.4)%
Unit sales4,023  3,499  524  15.0 %
Revenue per unit$3,873  $5,627  $(1,754) (31.2)%
Gross profit (loss) per unit$(60) $179  $(239) (133.5)%
Gross profit (loss) as a % of revenue(1.5)%3.2 %(470) bps
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Same store wholesale vehicle:
Revenue$5,572  $3,618  $1,954  54.0 %
Gross profit (loss)$(119) $(85) $(34) (40.0)%
Unit sales1,471  620  851  137.3 %
Revenue per unit$3,788  $5,835  $(2,047) (35.1)%
Gross profit (loss) per unit$(81) $(137) $56  40.9 %
Gross profit (loss) as a % of revenue(2.1)%(2.3)%20  bps
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands, except unit and per unit data)
Same store wholesale vehicle:
Revenue$12,277  $15,095  $(2,818) (18.7)%
Gross profit (loss)$(215) $625  $(840) (134.4)%
Unit sales3,180  2,609  571  21.9 %
Revenue per unit$3,861  $5,786  $(1,925) (33.3)%
Gross profit (loss) per unit$(68) $240  $(308) (128.3)%
Gross profit (loss) as a % of revenue(1.8)%4.1 %(590) bps




Fixed Operations - EchoPark Segment
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands)
Total reported Fixed Operations:
Revenue$8,227  $4,052  $4,175  103.0 %
Gross profit (loss)$(218) $491  $(709) (144.4)%
Gross profit (loss) as a % of revenue(2.6)%12.1 %(1,470) bps  
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands)
Total reported Fixed Operations:
Revenue$21,407  $13,271  $8,136  61.3 %
Gross profit (loss)$(589) $2,386  $(2,975) (124.7)%
Gross profit (loss) as a % of revenue(2.8)%18.0 %(2,080) bps  
Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands)
Total same store Fixed Operations:
Revenue$6,564  $3,668  $2,896  79.0 %
Gross profit (loss)$(187) $531  $(718) (135.2)%
Gross profit (loss) as a % of revenue(2.8)%14.5 %(1,730) bps  
Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands)
Total same store Fixed Operations:
Revenue$16,894  $11,693  $5,201  44.5 %
Gross profit (loss)$(479) $2,084  $(2,563) (123.0)%
Gross profit (loss) as a % of revenue(2.8)%17.8 %(2,060) bps










Selling, General and Administrative ("SG&A") Expenses - Non-GAAP Reconciliation

Three Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands)
Reported:
Compensation$184,089  $175,393  $(8,696) (5.0)%
Advertising15,856  14,652  (1,204) (8.2)%
Rent12,721  14,881  2,160  14.5 %
Other84,160  84,096  (64) (0.1)%
Total SG&A expenses$296,826  $289,022  $(7,804) (2.7)%
Items of interest:
Gain (loss) on franchise disposals$—  $(346) 
Storm damage charges—  (1,185) 
Executive transition costs—  (1,581) 
Total SG&A adjustments$—  $(3,112) 
Adjusted:
Total adjusted SG&A expenses$296,826  $285,910  $(10,916) (3.8)%
Reported:
SG&A expenses as a % of gross profit:
Compensation47.6 %48.6 %100  bps
Advertising4.1 %4.1 %—  bps
Rent3.3 %4.1 %80  bps
Other21.7 %23.4 %170  bps
Total SG&A expenses as a % of gross profit76.7 %80.2 %350  bps
Items of interest:
Gain (loss) on franchise disposals— %(0.1)%
Storm damage charges— %(0.3)%
Executive transition costs— %(0.5)%
Total effect of adjustments— %(0.9)%
Adjusted:
Total adjusted SG&A expenses as a % of gross profit76.7 %79.3 %260  bps




























Selling, General and Administrative ("SG&A") Expenses - Non-GAAP Reconciliation

Nine Months Ended September 30,Better / (Worse)
20192018Change% Change
(In thousands)
Reported:
Compensation$549,470  $558,071  $8,601  1.5 %
Advertising46,308  46,938  630  1.3 %
Rent41,308  50,451  9,143  18.1 %
Other201,367  215,950  14,583  6.8 %
Total SG&A expenses$838,453  $871,410  $32,957  3.8 %
Items of interest:
Gain (loss) on franchise disposals$46,680  $38,893  
Legal and storm damage charges—  (5,749) 
Executive transition costs(6,264) (1,581) 
Long-term compensation charges—  (32,522) 
Lease exit charges—  (2,235) 
Total SG&A adjustments$40,416  $(3,194) 
Adjusted:
Total adjusted SG&A expenses$878,869  $868,216  $(10,653) (1.2)%
Reported:
SG&A expenses as a % of gross profit:
Compensation48.7 %51.9 %320  bps
Advertising4.1 %4.4 %30  bps
Rent3.7 %4.7 %100  bps
Other17.9 %20.0 %210  bps
Total SG&A expenses as a % of gross profit74.4 %81.0 %660  bps
Items of interest:
Gain (loss) on franchise disposals4.2 %3.7 %
Legal and storm damage charges— %(0.5)%
Executive transition costs— %(0.1)%
Long-term compensation charges(0.6)%(3.1)%
Lease exit charges— %(0.2)%
Total effect of adjustments3.6 %(0.3)%
Adjusted:
Total adjusted SG&A expenses as a % of gross profit78.0 %80.7 %270  bps





Earnings per Share from Continuing Operations - Non-GAAP Reconciliation

Three Months Ended September 30, 2019Three Months Ended September 30, 2018
Weighted-
Average
Shares		AmountPer
Share
Amount		Weighted-
Average
Shares		AmountPer
Share
Amount
(In thousands, except per share amounts) 
Diluted earnings (loss) and shares from continuing operations44,203  $29,168  $0.66  42,994  $15,301  $0.36  
Pre-tax items of interest:
(Gain) loss on franchise disposals$—  $346  
Storm damage charges —  1,185
Executive transition costs—  1,581  
Total pre-tax items of interest —  3,112  
Tax effect of above items—  (848) 
Non-recurring tax items—  763  
Adjusted diluted earnings (loss) and shares from continuing operations44,203  $29,168  $0.66  42,994  $18,328  $0.43  



Nine Months Ended September 30, 2019Nine Months Ended September 30, 2018
Weighted-
Average
Shares		AmountPer
Share
Amount		Weighted-
Average
Shares		AmountPer
Share
Amount
(In thousands, except per share amounts) 
Diluted earnings (loss) and shares from continuing operations43,456  $98,268  $2.26  42,964  $30,409  $0.71  
Pre-tax items of interest:
(Gain) loss on franchise disposals$(46,680) $(38,893) 
Legal and storm damage charges—  5,749  
Long-term compensation charges—  32,522  
Executive transition costs6,264  1,581  
Impairment charges1,926  13,958
Lease exit charges—  2,235
Total pre-tax items of interest(38,490) 17,152  
Tax effect of above items12,902  (4,674) 
Non-recurring tax items—  1,313  
Adjusted diluted earnings (loss) and shares from continuing operations43,456  $72,680  $1.67  42,964  $44,200  $1.03  






Adjusted EBITDA - Non-GAAP Reconciliation

Three Months Ended September 30, 2019Three Months Ended September 30, 2018
Franchised Dealerships SegmentEchoPark SegmentDiscontinued OperationsTotalFranchised Dealerships SegmentEchoPark SegmentDiscontinued OperationsTotal
(In thousands) 
Net income (loss)$29,010  $15,118  
Provision for income taxes11,307  7,262  
Income (loss) before taxes$38,417  $2,123  $(223) $40,317  $28,087  $(5,455) $(252) $22,380  
Non-floor plan interest 12,011  402  —  12,413  12,279  423  98  12,800  
Depreciation & amortization21,561  2,703  —  24,264  22,140  1,999  —  24,139  
Stock-based compensation expense2,681  —  —  2,681  4,578  —  —  4,578  
Loss (gain) on exit of leased dealerships—  —  —  —  24  4  103  131  
Asset impairment charges—  1,124  —  1,124  —  —  —  —  
Loss (gain) on franchise disposals823  —  —  823  88  —  —  88  
Adjusted EBITDA $75,493  $6,352  $(223) $81,622  $67,196  $(3,029) $(51) $64,116  



Nine Months Ended September 30, 2019Nine Months Ended September 30, 2018
Franchised Dealerships SegmentEchoPark SegmentDiscontinued OperationsTotalFranchised Dealerships SegmentEchoPark SegmentDiscontinued OperationsTotal
(In thousands) 
Net income (loss)$97,831  $29,830  
Provision for income taxes40,251  13,493  
Income (loss) before taxes$134,701  $3,997  $(616) $138,082  $92,094  $(47,974) $(797) $43,323  
Non-floor plan interest 36,440  1,266  —  37,706  37,097  1,219  319  38,635  
Depreciation & amortization64,121  7,788  —  71,909  67,771  5,584  —  73,355  
Stock-based compensation expense8,107  —  —  8,107  10,589  —  —  10,589  
Loss (gain) on exit of leased dealerships(170) —  —  (170) 2,361  18  318  2,697  
Asset impairment charges25  3,051  —  3,076  13,879  82  —  13,961  
Long-term compensation charges—  —  —  —  —  32,522  —  32,522  
Loss (gain) on franchise disposals(45,570) —  —  (45,570) (39,149) —  —  (39,149) 
Adjusted EBITDA $197,654  $16,102  $(616) $213,140  $184,642  $(8,549) $(160) $175,933