Exhibit 99.1

Sonic Automotive Reports 1st Quarter 2020 Results With All-Time
Record EchoPark Revenue And Unit Sales

Strengthens Balance Sheet and Liquidity

CHARLOTTE, N.C. – April 29, 2020 - Sonic Automotive Inc. (“Sonic” or the “Company”) (NYSE:SAH), one of the nation’s largest automotive retailers, today reported financial results for the first quarter ended March 31, 2020. The Company also provided a business update regarding the effects of the COVID-19 pandemic, and the actions Sonic is taking to protect the health and safety of its guests and teammates.

In the first quarter of 2020, the Company was required to record a non-cash goodwill impairment charge of $268.0 million related to its franchised dealerships reporting unit as a result of a decrease in the Company’s market value due to the COVID-19 pandemic’s effect on the stock market and expected reduction in economic activity in the near term. Including the effect of this non-cash goodwill impairment charge, the Company reported GAAP loss per diluted share from continuing operations of $4.67 for the first quarter of 2020, compared to GAAP earnings per diluted share from continuing operations of $0.99 for the first quarter of 2019.

Excluding the effect of the non-cash goodwill impairment charge, adjusted earnings per diluted share from continuing operations* were $0.40 for the first quarter of 2020, compared to $0.39 for the first quarter of 2019, up nearly 3%.

First Quarter Highlights

•Adjusted earnings per diluted share from continuing operations* of $0.40 for the first quarter of 2020, compared to $0.39 for the first quarter of 2019
•SG&A expenses as a percentage of gross profit were 80.5% for the first quarter of 2020, compared to 68.8% for the first quarter of 2019 (adjusted SG&A expenses as a percentage of gross profit* were 80.5% for the first quarter of 2020 and 80.1% for the first quarter of 2019)
•Total Sonic consolidated first quarter 2020 revenues of $2.3 billion and gross profit of $350.6 million
•Record quarterly EchoPark revenues of $331.7 million, up 33% from the first quarter of 2019
•Record quarterly EchoPark retail sales volume of 13,986 units, up 27% from the first quarter of 2019
•EchoPark segment income of $2.1 million, in-line with the first quarter of 2019
•Total available liquidity of $418.4 million as of April 28, 2020, an increase from $311.5 million as of March 31, 2020, and $280.0 million as of December 31, 2019
•Same store Franchised Dealerships Segment operating results for the first quarter of 2020, compared to the first quarter of 2019:
◦Revenues down 2.7%, gross profit up 0.8%
◦New vehicle unit volume down 6.1%; new vehicle gross profit per unit down 6.5%, to $2,093 per unit
◦Retail used vehicle unit volume up 1.5%; retail used vehicle gross profit per unit down 2.5%, to $1,240 per unit
◦Parts, service and collision repair (“Fixed Operations”) gross profit up 2.0%; customer pay gross profit up 5.3%
◦Finance and insurance (“F&I”) gross profit up 6.9% (all-time record quarterly F&I gross profit per retail unit of $1,885 on a total Sonic consolidated basis)

* Adjusted net income from continuing operations, adjusted earnings per diluted share from continuing operations, adjusted SG&A expenses, and adjusted SG&A expenses as a percentage of gross profit are non-GAAP financial measures. The schedules included in this press release reconcile these non-GAAP financial measures to the most directly comparable GAAP financial measures.


Commentary

David Smith, Sonic’s and EchoPark’s Chief Executive Officer, commented, “Our exceptional 2019 momentum carried over into the first quarter of 2020, where we saw strong operational performance prior to the impact of the COVID-19 pandemic on our business in the last three weeks of March. Through the first two months of 2020, same store total revenues increased 17% versus the comparable two-month period in 2019, driven by an 11% increase in new vehicle unit sales volume, a 27% increase in used vehicle unit sales volume and an 8% increase in Fixed Operations revenues. In mid-


March, we began to see the sudden and severe impact of the COVID-19 pandemic, as many state and local governments across the nation enacted stay-at-home orders. As essential businesses, our stores have remained open as permitted by governmental orders, however we have experienced a significant reduction in customer foot traffic in both our service and sales businesses.”

Mr. Smith continued, “During this challenging time, our primary concern remains the health and safety of our teammates and guests. We have taken extensive actions to ensure that first responders and other essential workers have safe, reliable access to transportation so they can continue to supply critical needs in our communities. In addition to implementing CDC-recommended social distancing protocols and enhanced sanitization procedures at our dealerships, we are also providing no-contact vehicle pick-up and delivery services for both vehicle sales and vehicle service, ensuring stability and continuity for our guests, our teammates and our business partners.”

Jeff Dyke, Sonic’s and EchoPark’s President, commented, “Looking to the longer term, we continue to take appropriate steps to strengthen our balance sheet and fortify the business. This includes continuing to enhance our liquidity outlook by lowering operating costs, postponing certain capital expenditures and working with our manufacturer and lending partners to access additional sources of liquidity. I would like to thank all of our teammates and manufacturer partners for their dedication and commitment during this difficult time. Due to their efforts, we believe that we have the operating procedures and financial resources in place to manage the current economic climate and to quickly recover when consumer and commercial activity resumes.”

Heath Byrd, Sonic’s and EchoPark’s Chief Financial Officer, commented, “The one-time, non-cash goodwill impairment charge was related to our franchised dealerships only and was triggered by the decrease in our stock market value from the time period between the official announcement of the COVID-19 pandemic on March 11, 2020 and the end of the first quarter, March 31, 2020. While there continues to be near-term disruption from the COVID-19 pandemic, our liquidity is strong and our long-term outlook and prospects for Sonic and EchoPark have not changed. We believe that our current liquidity position, coupled with the actions taken to improve efficiencies during this pandemic, position us well for the recovery and will make us a stronger company into the future.”

COVID-19 Update

During the global COVID-19 pandemic, certain automotive dealership operations have been deemed essential businesses to support the continuity of people’s daily lives and ensure the transportation needs of our nation’s first responders and essential workers. Presently, all Sonic stores remain open, with full service operations and various levels of vehicle sales as stipulated by individual state and local orders. Sonic is committed to ensuring the safety of its guests and teammates by limiting the spread of COVID-19 while maintaining the continuity of its operations to the best of our ability.

Since the onset of the COVID-19 pandemic in the United States, Sonic has implemented a number of initiatives nationwide to protect the health and safety of its guests and teammates in response to the COVID-19 pandemic, notably:
•As an essential business, all of the Company’s service departments remain open to facilitate reliable transportation for consumers for purposes permitted under state and local government orders (such as shopping for groceries or receiving medical care), as well as first responders, medical professionals and other essential workers requiring transportation to their workplaces;
•The Company’s vehicle sales departments have begun to offer a no-contact purchase experience, allowing 90% of a vehicle transaction to be completed on Sonic’s website or by phone and delivered to the guest with a safe, no-contact home delivery;
•To further reduce the need for unnecessary travel, Sonic has provided delivery and pickup of vehicles from its guests’ places of residence, for those utilizing both the Company’s sales and service departments; and
•For all of the Company’s dealership locations, the Company is adhering to CDC-recommended social distancing protocols and has introduced stringent sanitization procedures, including providing enhanced disinfection of vehicles brought in for service, used for loaner service, used for test drives, or delivered to guests at home.

The COVID-19 pandemic is having a widespread effect on worldwide commerce, including the automotive industry. The positive momentum Sonic experienced during fiscal 2019, including increased revenues, higher overall vehicle sales volumes, and increased levels of profit, continued in early fiscal 2020 through the beginning of March. Since mid-March, Sonic has experienced a significant decrease in overall vehicle sales volumes and service department revenue compared to the prior year, mainly due to lower consumer demand related to the COVID-19 pandemic and related government-imposed restrictions and uncertainty around the overall economic outlook.



Financial Position

Sonic continues to have considerable financial resources and access to diversified funding sources. In response to the COVID-19 pandemic, the Company continues to opportunistically assess all available funding options to further strengthen its balance sheet and increase liquidity to maximize its financial flexibility. Sonic has also taken proactive measures to bolster its liquidity position and provide additional financial flexibility, including drawing down $210 million of additional cash from its revolving credit facility prior to March 31, 2020.

As of April 28, 2020, Sonic’s total available liquidity had increased to approximately $418.4 million, up from $311.5 million as of March 31, 2020 and $280.0 million as of December 31, 2019. Sonic’s liquidity at April 28, 2020 consists of $304.0 million of cash and cash equivalents on hand, $90.0 million of floor plan deposit balances and $24.4 million of availability under our existing credit facilities. All of the additional liquidity generated since December 31, 2019 was a result of maximizing availability under pre-existing agreements and cash from operations. Sonic may have additional opportunities to further increase its liquidity position using unfinanced real estate and other sources, if necessary. From a debt perspective, Sonic has no significant near-term debt maturities.

First Quarter 2020 Operational Summary

For the first quarter of 2020, Sonic’s consolidated total revenues were $2.3 billion, down 3% compared to the first quarter of 2019. EchoPark Segment revenues were $331.7 million for the first quarter of 2020, representing a 33% increase from the first quarter of 2019. Franchised Dealerships Segment revenues were $2.0 billion for the first quarter of 2020, down 8% from the first quarter of 2019, attributable to a substantial decrease in new and used vehicle sales during the last three weeks of March due to the COVID-19 pandemic and related government-imposed restrictions.

Adjusted SG&A expenses as a percentage of gross profit* were up 40 basis points for the first quarter of 2020, compared to the first quarter of 2019, due primarily to lower levels of gross profit for the first quarter of 2020, attributable to the COVID-19 pandemic.

Adjusted net income from continuing operations* for the first quarter of 2020 was $17.6 million, or $0.40 per diluted share. Comparatively, adjusted net income from continuing operations* for the first quarter of 2019 was $16.8 million, or $0.39 per diluted share.

Adjusted results exclude the following pre-tax items of interest:


(In millions)Q1 2020 Q1 2019Income Statement
Line Item
Gain on franchise disposals$—  $46.7  SG&A expenses
Executive transition costs$—  $(6.3) SG&A expenses(1) 
Impairment charges$(268.0) $(1.9) Impairment charges(2) 

Note: Amounts in table relate to the Franchised Dealerships Segment unless otherwise noted below.
(1) $6.0 million of Q1 2019 amount is not deductible for tax purposes.
(2) $91.1 million of Q1 2020 amount is not deductible for tax purposes. $1.9 million Q1 2019 amount is related to the EchoPark Segment.


Dividend

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

First Quarter 2020 Earnings Conference Call

Senior management will host a conference call on Thursday, April 30, 2020 at 11:00 A.M. (Eastern) to discuss the quarter’s results. To access the live broadcast of the call over the Internet, please go to ir.sonicautomotive.com. The conference call will also be available live by dialing in 15 minutes prior to the start of the call at:

Domestic: (833) 353-0344


International: (346) 294-9374
Conference ID: 5789957

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: 5789957

Investor presentation and earnings press release materials for the Company’s earnings conference call will be accessible beginning the morning of the conference call on the Company’s website at ir.sonicautomotive.com.

About Sonic Automotive

Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, North Carolina, is one of the nation’s largest automotive retailers. Sonic can be reached on the web at www.sonicautomotive.com.

About EchoPark Automotive

EchoPark Automotive is an operating segment within the Company with 10 existing locations that specialize in pre-owned vehicle sales and provide a unique guest experience unlike traditional used car stores. 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, economic conditions in the markets in which we operate, new and used vehicle industry sales volume, anticipated liquidity position, expected future capital expenditures, anticipated future growth in our EchoPark Segment, the success of our operational strategies, the rate and timing of overall economic expansion or contraction, the effect of the COVID-19 pandemic and related government-imposed restrictions on operations, and the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 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 net income from continuing operations, adjusted earnings per diluted share from continuing operations, adjusted SG&A expenses, and adjusted SG&A expenses as a percentage of gross profit. 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.

Company Contacts

Investor Inquiries:
Heath Byrd, Executive Vice President and Chief Financial Officer (704) 566-2400
Danny Wieland, Investor Relations (704) 927-3462

Press Inquiries:
Danielle DeVoren / Anthony Feldman
212-896-1272 / 347-487-6194
ddevoren@kcsa.com/afeldman@kcsa.com


Sonic Automotive, Inc.
Results of Operations (Unaudited)

Results of Operations
Three Months Ended March 31,Better / (Worse)
20202019% Change
(In thousands, except per share amounts)
Revenues:
New vehicles$959,489  $1,066,334  (10.0)%
Used vehicles850,052  820,366  3.6 %
Wholesale vehicles48,543  54,770  (11.4)%
Total vehicles1,858,084  1,941,470  (4.3)%
Parts, service and collision repair334,680  341,430  (2.0)%
Finance, insurance and other, net115,292  106,238  8.5 %
Total revenues2,308,056  2,389,138  (3.4)%
Cost of Sales:
New vehicles(914,074) (1,012,538) (9.7)%
Used vehicles(817,922) (783,358) 4.4 %
Wholesale vehicles(48,700) (56,037) (13.1)%
Total vehicles(1,780,696) (1,851,933) (3.8)%
Parts, service and collision repair(176,782) (178,194) (0.8)%
Total cost of sales(1,957,478) (2,030,127) (3.6)%
Gross profit350,578  359,011  (2.3)%
Selling, general and administrative expenses(282,156) (247,095) (14.2)%
Impairment charges(268,000) (1,952) (13,629.5)%
Depreciation and amortization(22,297) (22,649) 1.6 %
Operating income (loss)(221,875) 87,315  (354.1)%
Other income (expense):
Interest expense, floor plan(10,508) (13,226) 20.6 %
Interest expense, other, net(10,965) (12,853) 14.7 %
Other income (expense), net100  100  — %
Total other income (expense)(21,373) (25,979) 17.7 %
Income (loss) from continuing operations before taxes(243,248) 61,336  (496.6)%
Provision for income taxes for continuing operations - benefit (expense)44,117  (18,987) 332.4 %
Income (loss) from continuing operations(199,131) 42,349  (570.2)%
Discontinued operations:
Income (loss) from discontinued operations before taxes(285) (180) (58.3)%
Provision for income taxes for discontinued operations - benefit (expense)83  52  59.6 %
Income (loss) from discontinued operations(202) (128) (57.8)%
Net income (loss)$(199,333) $42,221  (572.1)%
Basic earnings (loss) per common share:
Earnings (loss) per share from continuing operations$(4.67) $0.99  (571.7)%
Earnings (loss) per share from discontinued operations(0.01) (0.01) — %
Earnings (loss) per common share$(4.68) $0.98  (577.6)%
Weighted-average common shares outstanding42,615  42,838  0.5 %
Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations$(4.67) $0.99  (571.7)%
Earnings (loss) per share from discontinued operations(0.01) (0.01) — %
Earnings (loss) per common share$(4.68) $0.98  (577.6)%
Weighted-average common shares outstanding42,615  42,888  0.6 %
Dividends declared per common share$0.10  $0.10  — %






New Vehicles - Consolidated
Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands, except unit and per unit data)
Reported new vehicle:
Revenue$959,489  $1,066,334  $(106,845) (10.0)%
Gross profit$45,415  $53,796  $(8,381) (15.6)%
Unit sales21,724  25,197  (3,473) (13.8)%
Revenue per unit$44,167  $42,320  $1,847  4.4 %
Gross profit per unit$2,091  $2,135  $(44) (2.1)%
Gross profit as a % of revenue4.7 %5.0 %(30) bps
Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands, except unit and per unit data)
Same store new vehicle:
Revenue$959,491  $1,006,903  $(47,412) (4.7)%
Gross profit$45,465  $51,752  $(6,287) (12.1)%
Unit sales21,724  23,133  (1,409) (6.1)%
Revenue per unit$44,167  $43,527  $640  1.5 %
Gross profit per unit$2,093  $2,237  $(144) (6.4)%
Gross profit as a % of revenue4.7 %5.1 %(40) bps













Used Vehicles - Consolidated
Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands, except unit and per unit data)
Reported used vehicle:
Revenue$850,052  $820,366  $29,686  3.6 %
Gross profit$32,130  $37,008  $(4,878) (13.2)%
Unit sales40,024  38,463  1,561  4.1 %
Revenue per unit$21,239  $21,329  $(90) (0.4)%
Gross profit per unit$803  $962  $(159) (16.5)%
Gross profit as a % of revenue3.8 %4.5 %(70) bps
Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands, except unit and per unit data)
Same store used vehicle:
Revenue$832,190  $793,460  $38,730  4.9 %
Gross profit$30,444  $32,351  $(1,907) (5.9)%
Unit sales39,105  36,692  2,413  6.6 %
Revenue per unit$21,281  $21,625  $(344) (1.6)%
Gross profit per unit$779  $882  $(103) (11.7)%
Gross profit as a % of revenue3.7 %4.1 %(40) bps

















Wholesale Vehicles - Consolidated
Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands, except unit and per unit data)
Reported wholesale vehicle:
Revenue$48,543  $54,770  $(6,227) (11.4)%
Gross profit (loss) $(157) $(1,267) $1,110  87.6 %
Unit sales8,675  8,647  28  0.3 %
Revenue per unit$5,596  $6,334  $(738) (11.7)%
Gross profit (loss) per unit$(18) $(147) $129  87.8 %
Gross profit (loss) as a % of revenue(0.3)%(2.3)%200  bps
Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands, except unit and per unit data)
Same store wholesale vehicle:
Revenue$48,313  $52,004  $(3,691) (7.1)%
Gross profit (loss)$(154) $(1,083) $929  85.8 %
Unit sales8,586  7,972  614  7.7 %
Revenue per unit$5,627  $6,523  $(896) (13.7)%
Gross profit (loss) per unit$(18) $(136) $118  86.8 %
Gross profit (loss) as a % of revenue(0.3)%(2.1)%180  bps















Parts, Service and Collision Repair ("Fixed Operations") - Consolidated

Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands)
Reported:
Revenue
Customer pay$135,056  $137,721  $(2,665) (1.9)%
Warranty60,760  68,973  (8,213) (11.9)%
Wholesale parts38,706  39,297  (591) (1.5)%
Internal, sublet and other100,158  95,439  4,719  4.9 %
Total$334,680  $341,430  $(6,750) (2.0)%
Gross profit
Customer pay$74,595  $74,326  $269  0.4 %
Warranty33,746  38,407  (4,661) (12.1)%
Wholesale parts6,667  6,796  (129) (1.9)%
Internal, sublet and other42,890  43,707  (817) (1.9)%
Total$157,898  $163,236  $(5,338) (3.3)%
Gross profit as a % of revenue
Customer pay55.2 %54.0 %120  bps
Warranty55.5 %55.7 %(20) bps
Wholesale parts17.2 %17.3 %(10) bps
Internal, sublet and other42.8 %45.8 %(300) bps
Total47.2 %47.8 %(60) bps

Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands)
Same Store:
Revenue
Customer pay$137,147  $133,233  $3,914  2.9 %
Warranty61,313  65,474  (4,161) (6.4)%
Wholesale parts38,706  38,157  549  1.4 %
Internal, sublet and other99,559  90,698  8,861  9.8 %
Total$336,725  $327,562  $9,163  2.8 %
Gross profit
Customer pay$75,729  $71,929  $3,800  5.3 %
Warranty33,907  36,525  (2,618) (7.2)%
Wholesale parts6,667  6,565  102  1.6 %
Internal, sublet and other42,752  40,832  1,920  4.7 %
Total$159,055  $155,851  $3,204  2.1 %
Gross profit as a % of revenue
Customer pay55.2 %54.0 %120  bps
Warranty55.3 %55.8 %(50) bps
Wholesale parts17.2 %17.2 %—  bps
Internal, sublet and other42.9 %45.0 %(210) bps
Total47.2 %47.6 %(40) bps






Finance, Insurance and Other, Net ("F&I") - Consolidated

Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands, except unit and per unit data)
Reported:
Revenue$115,292  $106,238  $9,054  8.5 %
Unit sales61,163  63,381  (2,218) (3.5)%
Gross profit per retail unit (excludes fleet)$1,885  $1,676  $209  12.5 %
Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands, except unit and per unit data)
Same Store:
Revenue$109,054  $99,384  $9,670  9.7 %
Unit sales60,244  59,546  698  1.2 %
Gross profit per retail unit (excludes fleet)$1,810  $1,669  $141  8.4 %




Q1 2020 Build - Consolidated Same Store
B/(W) than Comparable Period in 2019
(In millions, except unit and per unit data)January - February 2020March 2020Q1 2020
$%$%$%
New vehicle revenues$83  13.5 %$(130) (33.2)%$(47) (4.7)%
Retail used vehicle revenues12725.8 %(88) (29.0)%39  4.9 %
Wholesale used vehicle revenues—  2.2 %(4) (28.4)%(5) (7.1)%
Fixed Operations revenues18  8.3 %(9) (7.6)%9  2.8 %
F&I revenues17  27.8 %(7) (18.4)%10  9.7 %
    Total revenues$245  17.3 %$(238) (27.6)%$6  0.3 %
New vehicle gross profit$1  3.5 %$(7) (34.8)%$(6) (12.1)%
    New vehicle unit sales volume1,603  11.3 %(3,012) (33.6)%(1,409) (6.1)%
    New vehicle GPU$(151) (7.0)%$(41) (1.7)%$(144) (6.4)%
Retail used vehicle gross profit$3  14.1 %$(5) (36.1)%$(2) (5.9)%
    Retail used vehicle unit sales volume6,100  26.9 %(3,687) (26.4)%2,413  6.6 %
    Retail used vehicle GPU$(86) (10.0)%$(122) (13.2)%$(103) (11.7)%
Wholesale used vehicle gross profit$1  63.4 %$—  196.1 %$1  85.8 %
Fixed Operations gross profit$8  8.1 %$(5) (9.3)%$3  2.1 %
    Customer Pay gross profit$5  11.6 %$(2) (6.6)%$4  5.3 %
F&I gross profit$17  27.8 %$(7) (18.4)%$10  9.7 %
     F&I GPU$106  6.4 %$261  15.3 %$141  8.4 %
Total gross profit$30  14.0 %$(24) (18.9)%$6  1.7 %




New Vehicles - Franchised Dealership Segment
Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands, except unit and per unit data)
Reported new vehicle:
Revenue$959,489  $1,066,334  $(106,845) (10.0)%
Gross profit$45,415  $53,796  $(8,381) (15.6)%
Unit sales21,724  25,197  (3,473) (13.8)%
Revenue per unit$44,167  $42,320  $1,847  4.4 %
Gross profit per unit$2,091  $2,135  $(44) (2.1)%
Gross profit as a % of revenue4.7 %5.0 %(30) bps
Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands, except unit and per unit data)
Same store new vehicle:
Revenue$959,491  $1,006,903  $(47,412) (4.7)%
Gross profit$45,465  $51,752  $(6,287) (12.1)%
Unit sales21,724  23,133  (1,409) (6.1)%
Revenue per unit$44,167  $43,527  $640  1.5 %
Gross profit per unit$2,093  $2,237  $(144) (6.4)%
Gross profit as a % of revenue4.7 %5.1 %(40) bps





Used Vehicles - Franchised Dealership Segment
Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands, except unit and per unit data)
Reported used vehicle:
Revenue$566,888  $603,949  $(37,061) (6.1)%
Gross profit$32,314  $36,738  $(4,424) (12.0)%
Unit sales26,038  27,412  (1,374) (5.0)%
Revenue per unit$21,772  $22,032  $(260) (1.2)%
Gross profit per unit$1,241  $1,340  $(99) (7.4)%
Gross profit as a % of revenue5.7 %6.1 %(40) bps
Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands, except unit and per unit data)
Same store used vehicle:
Revenue$566,889  $577,043  $(10,154) (1.8)%
Gross profit$32,288  $32,608  $(320) (1.0)%
Unit sales26,038  25,641  397  1.5 %
Revenue per unit$21,772  $22,505  $(733) (3.3)%
Gross profit per unit$1,240  $1,272  $(32) (2.5)%
Gross profit as a % of revenue5.7 %5.7 %—  bps



Wholesale Vehicles - Franchised Dealership Segment
Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands, except unit and per unit data)
Reported wholesale vehicle:
Revenue$42,440  $52,533  $(10,093) (19.2)%
Gross profit (loss) $(83) $(1,204) $1,121  93.1 %
Unit sales6,910  8,148  (1,238) (15.2)%
Revenue per unit$6,142  $6,447  $(305) (4.7)%
Gross profit (loss) per unit$(12) $(148) $136  91.9 %
Gross profit (loss) as a % of revenue(0.2)%(2.3)%210  bps
Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands, except unit and per unit data)
Same store wholesale vehicle:
Revenue$42,440  $49,767  $(7,327) (14.7)%
Gross profit (loss)$(83) $(1,020) $937  91.9 %
Unit sales6,910  7,473  (563) (7.5)%
Revenue per unit$6,142  $6,660  $(518) (7.8)%
Gross profit (loss) per unit$(12) $(136) $124  91.2 %
Gross profit (loss) as a % of revenue(0.2)%(2.0)%180  bps




Fixed Operations - Franchised Dealership Segment
Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands)
Reported:
Revenue
Customer pay$134,798  $137,569  $(2,771) (2.0)%
Warranty60,760  68,973  (8,213) (11.9)%
Wholesale parts38,706  39,297  (591) (1.5)%
Internal, sublet and other90,237  90,386  (149) (0.2)%
Total$324,501  $336,225  $(11,724) (3.5)%
Gross profit
Customer pay$74,593  $74,324  $269  0.4 %
Warranty33,746  38,407  (4,661) (12.1)%
Wholesale parts6,667  6,796  (129) (1.9)%
Internal, sublet and other43,090  43,919  (829) (1.9)%
Total$158,096  $163,446  $(5,350) (3.3)%
Gross profit as a % of revenue
Customer pay55.3 %54.0 %130  bps
Warranty55.5 %55.7 %(20) bps
Wholesale parts17.2 %17.3 %(10) bps
Internal, sublet and other47.8 %48.6 %(80) bps
Total48.7 %48.6 %10  bps

Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands)
Same Store:
Revenue
Customer pay$136,913  $133,081  $3,832  2.9 %
Warranty61,313  65,474  (4,161) (6.4)%
Wholesale parts38,706  38,157  549  1.4 %
Internal, sublet and other90,219  85,646  4,573  5.3 %
Total$327,151  $322,358  $4,793  1.5 %
Gross profit
Customer pay$75,728  $71,926  $3,802  5.3 %
Warranty33,907  36,525  (2,618) (7.2)%
Wholesale parts6,667  6,565  102  1.6 %
Internal, sublet and other42,911  41,044  1,867  4.5 %
Total$159,213  $156,060  $3,153  2.0 %
Gross profit as a % of revenue
Customer pay55.3 %54.0 %130  bps
Warranty55.3 %55.8 %(50) bps
Wholesale parts17.2 %17.2 %—  bps
Internal, sublet and other47.6 %47.9 %(30) bps
Total48.7 %48.4 %30  bps








F&I - Franchised Dealership Segment
Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands, except unit and per unit data)
Reported:
Revenue$83,029  $80,521  $2,508  3.1 %
Unit sales47,177  52,330  (5,153) (9.8)%
Gross profit per retail unit (excludes fleet)$1,760  $1,539  $221  14.4 %
Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands, except unit and per unit data)
Same Store:
Revenue$78,830  $73,737  $5,093  6.9 %
Unit sales47,177  48,495  (1,318) (2.7)%
Gross profit per retail unit (excludes fleet)$1,671  $1,521  $150  9.9 %






Used Vehicles and F&I - EchoPark Segment
Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands, except unit and per unit data)
Reported used vehicle and F&I:
Used vehicle revenue$283,164  $216,417  $66,747  30.8 %
Used vehicle gross profit (loss)$(184) $270  $(454) (168.1)%
Used vehicle unit sales13,986  11,051  2,935  26.6 %
Used vehicle revenue per unit$20,246  $19,583  $663  3.4 %
F&I revenue$32,263  $25,717  $6,546  25.5 %
Combined used vehicle gross profit and F&I revenue$32,079  $25,987  $6,092  23.4 %
Total used vehicle and F&I gross profit per unit$2,294  $2,352  $(58) (2.5)%
Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands, except unit and per unit data)
Same store used vehicle:
Used vehicle revenue$265,301  $216,417  $48,884  22.6 %
Used vehicle gross profit (loss)$(1,844) $(257) $(1,587) (617.5)%
Used vehicle unit sales13,067  11,051  2,016  18.2 %
Used vehicle revenue per unit$20,303  $19,583  $720  3.7 %
F&I revenue$30,224  $25,647  $4,577  17.8 %
Combined used vehicle gross profit and F&I revenue$28,380  $25,390  $2,990  11.8 %
Total used vehicle and F&I gross profit per unit$2,172  $2,298  $(126) (5.5)%






Wholesale Vehicles - EchoPark Segment
Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands, except unit and per unit data)
Reported wholesale vehicle:
Revenue$6,103  $2,237  $3,866  172.8 %
Gross profit (loss) $(74) $(63) $(11) (17.5)%
Unit sales1,765  499  1,266  253.7 %
Revenue per unit$3,458  $4,483  $(1,025) (22.9)%
Gross profit (loss) per unit$(42) $(126) $84  66.7 %
Gross profit (loss) as a % of revenue(1.2)%(2.8)%160  bps
Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands, except unit and per unit data)
Same store wholesale vehicle:
Revenue$5,873  $2,237  $3,636  162.5 %
Gross profit (loss)$(71) $(63) $(8) (12.7)%
Unit sales1,676  499  1,177  235.9 %
Revenue per unit$3,504  $4,483  $(979) (21.8)%
Gross profit (loss) per unit$(42) $(126) $84  66.7 %
Gross profit (loss) as a % of revenue(1.2)%(2.8)%160  bps






Fixed Operations - EchoPark Segment
Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands)
Total reported Fixed Operations:
Revenue$10,179  $5,205  $4,974  95.6 %
Gross profit (loss)$(198) $(210) $12  5.7 %
Gross profit (loss) as a % of revenue(1.9)%(4.0)%210  bps  
Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands)
Total same store Fixed Operations:
Revenue$9,574  $5,204  $4,370  84.0 %
Gross profit (loss)$(158) $(209) $51  24.4 %
Gross profit (loss) as a % of revenue(1.7)%(4.0)%230  bps  











Segment Income (Loss)

Three Months Ended March 31,Better / (Worse)
20202019Change% Change
Segment income (loss):
Franchised Dealerships Segment $22,656  $61,182  $(38,526) (63.0)%
EchoPark Segment 2,096  2,106  (10) (0.5)%
Total segment income (loss)$24,752  $63,288  $(38,536) (60.9)%
Impairment charges(268,000) (1,952) (266,048) 13,629.5 %
Income (loss) from continuing operations before taxes$(243,248) $61,336  $(304,584) (496.6)%






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

Three Months Ended March 31,Better / (Worse)
20202019Change% Change
(In thousands)
Reported:
Compensation$174,422  $184,185  $9,763  5.3 %
Advertising14,135  15,050  915  6.1 %
Rent13,865  15,250  1,385  9.1 %
Other79,734  32,610  (47,124) (144.5)%
Total SG&A expenses$282,156  $247,095  $(35,061) (14.2)%
Items of interest:
Gain (loss) on franchise disposals$—  $46,680  
Executive transition costs—  (6,264) 
Total SG&A adjustments$—  $40,416  
Adjusted:
Total adjusted SG&A expenses$282,156  $287,511  $5,355  1.9 %
Reported:
SG&A expenses as a % of gross profit:
Compensation49.8 %51.3 %150  bps
Advertising4.0 %4.2 %20  bps
Rent4.0 %4.2 %20  bps
Other22.7 %9.1 %(1,360) bps
Total SG&A expenses as a % of gross profit80.5 %68.8 %(1,170) bps
Items of interest:
Gain (loss) on franchise disposals— %13.1 %
Executive transition costs— %(1.8)%
Total effect of adjustments— %11.3 %
Adjusted:
Total adjusted SG&A expenses as a % of gross profit80.5 %80.1 %(40) bps






























Earnings Per Share from Continuing Operations - Non-GAAP Reconciliation

Three Months Ended March 31, 2020Three Months Ended March 31, 2019
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 operations (1)
42,615  $(199,131) $(4.67) 42,888  $42,349  $0.99  
Pre-tax items of interest:
(Gain) loss on franchise disposals$—  $(46,680) 
Executive transition costs—  6,264  
Impairment charges268,000  1,926
Total pre-tax items of interest $268,000  $(38,490) 
Tax effect of above items$(51,295) $12,902  
Adjusted diluted earnings (loss) and shares from continuing operations43,432  $17,574  $0.40  42,888  $16,761  $0.39  


(1) Basic Weighted-Average Shares Used For Three Months Ended March 31, 2020 Due To Net Loss On GAAP Basis








Adjusted EBITDA - Non-GAAP Reconciliation

Three Months Ended March 31, 2020Three Months Ended March 31, 2019
Franchised Dealerships SegmentEchoPark SegmentDiscontinued OperationsTotalFranchised Dealerships SegmentEchoPark SegmentDiscontinued OperationsTotal
(In thousands)
Net income (loss)$(199,333) $42,221  
Provision for income taxes(44,200) 18,935  
Income (loss) before taxes$(245,344) $2,096  $(285) $(243,533) $61,156  $180  $(180) $61,156  
Non-floor plan interest 10,043  365  —  10,408  11,829  433  —  12,262  
Depreciation and amortization20,144  2,708  —  22,852  20,824  2,418  —  23,242  
Stock-based compensation expense2,427  —  —  2,427  2,814  —  —  2,814  
Loss (gain) on exit of leased dealerships—  —  —  —  (170) —  —  (170) 
Impairment charges268,000  —  —  268,000  26  1,926  —  1,952  
Loss (gain) on franchise disposals—  —  —  —  (46,750) —  —  (46,750) 
Adjusted EBITDA $55,270  $5,169  $(285) $60,154  $49,729  $4,957  $(180) $54,506