Exhibit 99.1

Sonic Automotive Reports All-Time Record Quarterly Revenues and Pre-Tax Earnings
Record Fourth Quarter Results Reflect Strong Performance and Improved Cost Structure

CHARLOTTE, N.C. – February 17, 2021 – Sonic Automotive, Inc. (“Sonic” or the “Company”) (NYSE:SAH), one of the nation’s largest automotive retailers, today reported financial results for the fourth quarter and full year ended December 31, 2020. The financial measures discussed below are results for the fourth quarter of 2020 compared to the fourth quarter of 2019, or full year 2020 compared to full year 2019, as applicable, unless otherwise noted.

Fourth Quarter Highlights

All-time record quarterly revenues of $2.8 billion, up 1.8%, and all-time record quarterly income from continuing operations before taxes of $90.4 million, up 48.3%
Reported earnings from continuing operations of $57.5 million ($1.31 per diluted share), compared to $46.3 million ($1.04 per diluted share) for the fourth quarter of 2019
All-time record quarterly adjusted earnings from continuing operations* of $65.8 million ($1.50 per diluted share), an increase of 52.7% compared to $43.1 million ($0.97 per diluted share) for the fourth quarter of 2019
Reported selling, general and administrative (“SG&A”) expenses as a percentage of gross profit were 66.6%, compared to 66.2% for the fourth quarter of 2019
All-time record quarterly adjusted SG&A expenses as a percentage of gross profit* of 68.1%, compared to 73.7% for the fourth quarter of 2019, a 560-basis point improvement
All-time record quarterly total Finance & Insurance (“F&I”) gross profit per retail unit of $2,031, up 12.3%
Reported EchoPark results include:
All-time record quarterly EchoPark revenues of $386.9 million, up 25.4%
EchoPark retail sales volume of 14,841, up 17.1%
Same store Franchised Dealerships Segment operating results include:
Revenues up 1.5%, gross profit up 1.7%
New vehicle unit sales volume down 6.9%; new vehicle gross profit per unit up 31.4%, to all-time record $2,932
Retail used vehicle unit sales volume down 2.9%; retail used vehicle gross profit per unit down 24.2%, to $972
Parts, service and collision repair gross profit down 3.2% (customer pay gross profit down 0.5%); gross margin up 180 basis points, to 50.7%
F&I gross profit up 7.8%; all-time record quarterly reported Franchised Dealerships Segment F&I gross profit per retail unit of $1,965, up 14.9%

Full Year Highlights

Total revenues of $9.8 billion, down 6.6%, and gross profit of $1.4 billion, down 6.4%,
Reported loss from continuing operations of $50.7 million ($1.19 per diluted share), compared to earnings from continuing operations of $144.5 million ($3.31 per diluted share) for full year 2019
All-time record annual adjusted earnings from continuing operations* of $168.9 million ($3.85 per diluted share), an increase of 45.9% compared to $115.8 million ($2.65 per diluted share) for full year 2019
Reported SG&A expenses as a percentage of gross profit were 72.3%, compared to 72.3% for full year 2019
Adjusted SG&A expenses as a percentage of gross profit* were 72.9%, compared to 76.9% for full year 2019, a 400-basis point improvement
All-time record annual total F&I gross profit per retail unit of $1,952, up 12.0%
Reported EchoPark results include:
All-time record annual EchoPark revenues of $1.4 billion, up 22.1%
All-time record annual EchoPark retail sales volume of 57,161 units, up 15.4%
Same store Franchised Dealerships Segment operating results include:
Revenues down 6.4%, gross profit down 3.9%
New vehicle sales volume down 12.9%; new vehicle unit gross profit per unit up 19.0%, to all-time record $2,508
Retail used vehicle unit sales volume down 4.4%; retail used vehicle gross profit per unit down 8.8%, to $1,168
Parts, service and collision repair gross profit down 7.7% (customer pay gross profit down 3.6%); gross margin up 100 basis points, to 49.9%
F&I gross profit up 1.2%; all-time record annual reported Franchised Dealerships Segment F&I gross profit per retail unit of $1,846, up 14.0%

Commentary

Jeff Dyke, Sonic’s and EchoPark’s President, commented, “We are extremely proud of our team for all they have accomplished in 2020, driving the highest adjusted earnings from continuing operations* in our Company’s history in the face of the challenges of a global



pandemic. Our fourth quarter and full year 2020 results reflect the continued strength and resilience of both our EchoPark and franchised dealerships segments, a significant rebound in customer activity and increasing demand for both new and used vehicles during the second half of the year, as well as fundamental improvements in our operating cost structure. These trends have continued into early 2021 and we believe we are well on the path to more than double the Company’s total revenues and significantly increase profitability over the next five years.”

Mr. Dyke continued, “Our EchoPark business achieved strong top-line growth during the fourth quarter, with record quarterly revenues of $386.9 million, up 25.4% from the prior year period. EchoPark’s continued growth demonstrates the significant benefits we offer our guests, who continue to see value in the excellent pricing, inventory selection and buying experience that EchoPark offers. This in-store experience, combined with our hybrid approach between online and on-site, offers consumers a full range of buying options in order to provide their ideal pre-owned vehicle purchase experience. With the opening of four new EchoPark points in the fourth quarter and the recent acquisition of two pre-owned businesses in Maryland and New York, we remain committed to developing our nationwide distribution network, which we continue to expect to retail over half a million pre-owned vehicles annually and drive $14.0 billion in annual EchoPark revenues by 2025.”

Heath Byrd, Sonic’s and EchoPark’s Chief Financial Officer, commented, “In 2020, we took significant steps to improve operating efficiencies and manage expenses throughout our entire organization, which drove record adjusted SG&A expenses as a percentage of gross profit* of 68.1% for the fourth quarter of 2020. Our team met the hurdles of the COVID-19 pandemic head on, initiating cost control measures to meet these challenges and remaining disciplined in this focus even as consumer demand rebounded in the second half of the year. Additionally, our balance sheet position is stronger than it has ever been, with the lowest net debt to adjusted EBITDA* ratio in our Company’s history and total available liquidity of $526.4 million as of December 31, 2020, up 88.0% from the beginning of the year.”

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

Dividend

Sonic’s Board of Directors approved a quarterly cash dividend of $0.10 per share payable on April 15, 2021 to all stockholders of record on March 15, 2021.

Fourth Quarter 2020 Earnings Conference Call

Senior management will hold a conference call on Wednesday, February 17, 2021 at 11:00 A.M. (Eastern). Investor presentation and earnings press release materials will be accessible beginning the morning of the conference call on the Company’s website at ir.sonicautomotive.com.

To access the live broadcast of the call over the internet, please go to ir.sonicautomotive.com. For telephone access to this conference call, please register in advance using this link: http://www.directeventreg.com/registration/event/7083166. After registering, you will receive a confirmation email that includes dial-in numbers and unique conference call and registrant passcodes for entry. Registration remains available through the live call, however, to ensure you are connected for the full call we suggest registering at least 10 minutes before the start of the call.

A conference call replay will be available one hour following the call for 14 days at ir.sonicautomotive.com.

About Sonic Automotive

Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, North Carolina, is 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 a growing operating segment within the Company that specializes in pre-owned vehicle sales and provides 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, including statements regarding anticipated future revenue levels, future profitability, projected SG&A expense levels, pre-owned vehicle sales projections and the opening of additional EchoPark points. 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 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, the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, the Company’s Current Report on Form 8-K filed on February 12, 2021 and other 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 earnings from continuing operations, adjusted earnings per diluted share from continuing operations, adjusted SG&A expenses, adjusted SG&A expenses as a percentage of gross profit and adjusted EBITDA. As required by SEC rules, the Company has provided reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures in the schedules included in this press release. The Company believes that these non-GAAP financial measures improve the transparency of the Company’s disclosures and provide a meaningful presentation of the Company’s results.

Company Contacts

Investor Inquiries:
Heath Byrd, Executive Vice President and Chief Financial Officer (704) 566-2400
Danny Wieland, Vice President, Investor Relations & Financial Reporting (704) 927-3462
ir@sonicautomotive.com

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 December 31,Better / (Worse)Twelve Months Ended December 31,Better / (Worse)
20202019% Change20202019% Change
(In thousands, except per share amounts)
Revenues:
New vehicles$1,323,429 $1,360,064 (2.7)%$4,281,223 $4,889,171 (12.4)%
Used vehicles959,875 869,708 10.4 %3,564,832 3,489,972 2.1 %
Wholesale vehicles59,156 46,596 27.0 %197,378 202,946 (2.7)%
Total vehicles2,342,460 2,276,368 2.9 %8,043,433 8,582,089 (6.3)%
Parts, service and collision repair319,068 346,514 (7.9)%1,233,735 1,395,303 (11.6)%
Finance, insurance and other, net137,026 125,522 9.2 %489,874 476,951 2.7 %
Total revenues2,798,554 2,748,404 1.8 %9,767,042 10,454,343 (6.6)%
Cost of Sales:
New vehicles(1,242,818)(1,292,480)3.8 %(4,047,132)(4,656,084)13.1 %
Used vehicles(941,413)(832,877)(13.0)%(3,458,834)(3,342,576)(3.5)%
Wholesale vehicles(61,988)(47,941)(29.3)%(198,249)(207,378)4.4 %
Total vehicles(2,246,219)(2,173,298)(3.4)%(7,704,215)(8,206,038)6.1 %
Parts, service and collision repair(163,218)(181,222)9.9 %(639,182)(727,288)12.1 %
Total cost of sales(2,409,437)(2,354,520)(2.3)%(8,343,397)(8,933,326)6.6 %
Gross profit389,117 393,884 (1.2)%1,423,645 1,521,017 (6.4)%
Selling, general and administrative expenses(258,977)(260,921)0.7 %(1,028,666)(1,099,374)6.4 %
Impairment charges(1,158)(17,692)93.5 %(270,017)(20,768)(1,200.2)%
Depreciation and amortization(23,145)(23,048)(0.4)%(91,023)(93,169)2.3 %
Operating income (loss)105,837 92,223 14.8 %33,939 307,706 (89.0)%
Other income (expense):
Interest expense, floor plan(5,406)(11,137)51.5 %(27,228)(48,519)43.9 %
Interest expense, other, net(10,048)(13,458)25.3 %(41,572)(52,953)21.5 %
Other income (expense), net(5)(6,680)99.9 %97 (6,589)101.5 %
Total other income (expense)(15,459)(31,275)50.6 %(68,703)(108,061)36.4 %
Income (loss) from continuing operations before taxes90,378 60,948 48.3 %(34,764)199,645 (117.4)%
Provision for income taxes for continuing operations - benefit (expense)(32,895)(14,676)(124.1)%(15,900)(55,108)71.1 %
Income (loss) from continuing operations57,483 46,272 24.2 %(50,664)144,537 (135.1)%
Discontinued operations:
Income (loss) from discontinued operations before taxes(194)62 (412.9)%(1,002)(554)(80.9)%
Provision for income taxes for discontinued operations - benefit (expense)50 (27)285.2 %281 154 82.5 %
Income (loss) from discontinued operations(144)35 (511.4)%(721)(400)(80.3)%
Net income (loss)$57,339 $46,307 23.8 %$(51,385)$144,137 (135.7)%
Basic earnings (loss) per common share:
Earnings (loss) per share from continuing operations$1.37 $1.07 28.0 %$(1.19)$3.36 (135.4)%
Earnings (loss) per share from discontinued operations— — — %(0.02)(0.01)(100.0)%
Earnings (loss) per common share$1.37 $1.07 28.0 %$(1.21)$3.35 (136.1)%
Weighted-average common shares outstanding41,874 43,078 2.8 %42,483 43,016 1.2 %
Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations$1.31 $1.04 26.0 %$(1.19)$3.31 (136.0)%
Earnings (loss) per share from discontinued operations(0.01)— (100.0)%(0.02)(0.01)(100.0)%
Earnings (loss) per common share$1.30 $1.04 25.0 %$(1.21)$3.30 (136.7)%
Weighted-average common shares outstanding(1)
44,022 44,463 1.0 %42,483 43,710 2.8 %
Dividends declared per common share$0.10 $0.10 — %$0.40 $0.40 — %

(1) Basic weighted-average shares used for twelve months ended December 31, 2020 due to net loss on reported GAAP basis.





Franchised Dealerships Segment - Reported


Three Months Ended
December 31,
Better / (Worse)Twelve Months Ended
December 31,
Better / (Worse)
20202019% Change20202019% Change
(In thousands, except unit and per unit data)
Revenues:
New vehicles$1,323,429 $1,360,064 (2.7)%$4,281,223 $4,889,171 (12.4)%
Used vehicles627,786 604,422 3.9 %2,345,936 2,493,467 (5.9)%
Wholesale vehicles49,181 39,250 25.3 %168,655 180,020 (6.3)%
Total vehicles2,000,396 2,003,736 (0.2)%6,795,814 7,562,658 (10.1)%
Parts, service and collision repair307,861 339,168 (9.2)%1,194,394 1,366,550 (12.6)%
Finance, insurance and other, net103,383 96,947 6.6 %357,848 363,117 (1.5)%
Total revenues2,411,640 2,439,851 (1.2)%8,348,056 9,292,325 (10.2)%
Gross Profit:
New vehicles80,611 67,583 19.3 %234,091 233,087 0.4 %
Used vehicles25,834 35,727 (27.7)%122,948 147,541 (16.7)%
Wholesale vehicles(2,905)(1,254)(131.7)%(789)(4,100)80.8 %
Total vehicles103,540 102,056 1.5 %356,250 376,528 (5.4)%
Parts, service and collision repair156,070 165,647 (5.8)%595,342 668,958 (11.0)%
Finance, insurance and other, net103,383 96,947 6.6 %357,848 363,117 (1.5)%
Total gross profit362,993 364,650 (0.5)%1,309,440 1,408,603 (7.0)%
Selling, general and administrative expenses(235,941)(237,849)0.8 %(933,738)(1,011,763)7.7 %
Impairment charges(1,158)(1,075)(7.7)%(270,017)(1,101)NM
Depreciation and amortization(20,275)(20,288)0.1 %(79,929)(82,636)3.3 %
Operating income (loss)105,619 105,438 0.2 %25,756 313,103 (91.8)%
Other income (expense):
Interest expense, floor plan(4,549)(10,275)55.7 %(24,066)(45,055)46.6 %
Interest expense, other, net(9,853)(13,019)24.3 %(40,624)(51,231)20.7 %
Other income (expense), net(5)(6,680)99.9 %92 (6,651)101.4 %
Total other income (expense)(14,407)(29,974)51.9 %(64,598)(102,937)37.2 %
Income (loss) before taxes91,212 75,464 20.9 %(38,842)210,166 (118.5)%
Add: impairment charges1,158 1,075 NM270,017 1,101 NM
Segment income (loss)$92,370 $76,539 20.7 %$231,175 $211,267 9.4 %
Unit Sales Volume:
New vehicles27,566 30,591 (9.9)%93,281 114,131 (18.3)%
Used vehicles25,490 27,099 (5.9)%101,864 112,629 (9.6)%
Wholesale vehicles6,463 6,148 5.1 %24,879 28,379 (12.3)%
Retail new & used vehicles53,056 57,690 (8.0)%195,145 226,760 (13.9)%
Used:New Ratio0.92 0.89 4.4 %1.09 0.99 10.7 %
Gross Profit Per Unit:
New vehicles$2,924 $2,209 32.4 %$2,510 $2,042 22.9 %
Used vehicles$1,014 $1,318 (23.1)%$1,207 $1,310 (7.9)%
Finance, insurance and other, net$1,965 $1,710 14.9 %$1,846 $1,620 14.0 %
NM = Not Meaningful



Franchised Dealerships Segment - Same Store


Three Months Ended
December 31,
Better / (Worse)Twelve Months Ended
December 31,
Better / (Worse)
20202019% Change20202019% Change
(In thousands, except unit and per unit data)
Revenues:
New vehicles$1,322,958 $1,326,947 (0.3)%$4,258,098 $4,654,982 (8.5)%
Used vehicles627,656 582,582 7.7 %2,332,150 2,376,141 (1.9)%
Wholesale vehicles49,165 38,419 28.0 %167,794 172,306 (2.6)%
Total vehicles1,999,779 1,947,948 2.7 %6,758,042 7,203,429 (6.2)%
Parts, service and collision repair308,098 330,337 (6.7)%1,184,428 1,309,201 (9.5)%
Finance, insurance and other, net97,570 90,550 7.8 %335,695 331,860 1.2 %
Total revenues$2,405,447 $2,368,835 1.5 %$8,278,165 $8,844,490 (6.4)%
Gross Profit:
New vehicles$80,776 $66,011 22.4 %$231,871 $223,661 3.7 %
Used vehicles24,768 33,646 (26.4)%117,903 135,259 (12.8)%
Wholesale vehicles(2,868)(1,255)(128.5)%(520)(3,382)84.6 %
Total vehicles102,676 98,402 4.3 %349,254 355,538 (1.8)%
Parts, service and collision repair156,321 161,500 (3.2)%590,946 640,015 (7.7)%
Finance, insurance and other, net97,570 90,550 7.8 %335,695 331,860 1.2 %
Total gross profit$356,567 $350,452 1.7 %$1,275,895 $1,327,413 (3.9)%
Unit Sales Volume:
New vehicles27,552 29,586 (6.9)%92,445 106,170 (12.9)%
Used vehicles25,479 26,251 (2.9)%100,983 105,639 (4.4)%
Wholesale vehicles6,460 5,871 10.0 %24,701 26,114 (5.4)%
Retail new & used vehicles53,031 55,837 (5.0)%193,428 211,809 (8.7)%
Used:New Ratio0.92 0.89 4.2 %1.09 0.99 9.8 %
Gross Profit Per Unit:
New vehicles$2,932 $2,231 31.4 %$2,508 $2,107 19.0 %
Used vehicles$972 $1,282 (24.2)%$1,168 $1,280 (8.8)%
Finance, insurance and other, net$1,855 $1,650 12.4 %$1,748 $1,587 10.1 %




EchoPark Segment - Reported

Three Months Ended
December 31,
Better / (Worse)Twelve Months Ended
December 31,
Better / (Worse)
20202019% Change20202019% Change
(In thousands, except unit and per unit data)
Revenues:
Used vehicles$332,089 $265,286 25.2 %$1,218,896 $996,505 22.3 %
Wholesale vehicles9,975 7,346 35.8 %28,723 22,926 25.3 %
Total vehicles342,064 272,632 25.5 %1,247,619 1,019,431 22.4 %
Parts, service and collision repair11,207 7,346 52.6 %39,341 28,753 36.8 %
Finance, insurance and other, net33,643 28,575 17.7 %132,026 113,834 16.0 %
Total revenues386,914 308,553 25.4 %1,418,986 1,162,018 22.1 %
Gross Profit:
Used(7,372)1,104 (767.8)%(16,950)(145)(11,589.7)%
Wholesale73 (92)179.3 %(82)(332)75.3 %
Total vehicles(7,299)1,012 (821.2)%(17,032)(477)(3,470.6)%
Parts, service and collision repair(220)(354)37.9 %(789)(943)16.3 %
Finance & insurance33,643 28,576 17.7 %132,026 113,834 16.0 %
Total gross profit26,124 29,234 (10.6)%114,205 112,414 1.6 %
SG&A(23,036)(23,072)0.2 %(94,928)(87,611)(8.4)%
Impairment— (16,617)100.0 %— (19,667)100.0 %
Depreciation(2,870)(2,760)(4.0)%(11,094)(10,533)(5.3)%
Operating income218 (13,215)101.6 %8,183 (5,397)251.6 %
Other income (expense):
Interest floor plan(857)(862)0.6 %(3,162)(3,464)8.7 %
Interest other(195)(439)55.6 %(948)(1,722)44.9 %
Other income (expense)— — — %62 (91.9)%
Total other income (expense)(1,052)(1,301)19.1 %(4,105)(5,124)19.9 %
Income (loss) before taxes(834)(14,516)94.3 %4,078 (10,521)138.8 %
Less: impairment charges— (16,617)NM— (19,667)NM
Segment income (loss)$(834)$2,101 (139.7)%$4,078 $9,146 (55.4)%
Unit Sales Volume:
Used vehicles14,841 12,676 17.1 %57,161 49,520 15.4 %
Wholesale vehicles2,004 1,751 14.4 %7,178 5,774 24.3 %
Gross Profit Per Unit:
Total used vehicle and F&I$1,770 $2,341 (24.4)%$2,013 $2,296 (12.3)%
NM = Not Meaningful



EchoPark Segment - Same Store

Three Months Ended
December 31,
Better / (Worse)Twelve Months Ended
December 31,
Better / (Worse)
20202019% Change20202019% Change
(In thousands, except unit and per unit data)
Revenues:
Used vehicles$236,074 $262,913 (10.2)%$1,026,377 $994,131 3.2 %
Wholesale vehicles7,319 7,346 (0.4)%24,737 22,927 7.9 %
Total vehicles243,393 270,259 (9.9)%1,051,114 1,017,058 3.3 %
Parts, service and collision repair9,243 7,104 30.1 %34,768 28,510 22.0 %
Finance, insurance and other, net24,607 28,052 (12.3)%112,403 112,891 (0.4)%
Total revenues$277,243 $305,415 (9.2)%$1,198,285 $1,158,459 3.4 %
Gross Profit:
Used vehicles$(6,785)$(609)(1,014.1)%$(19,983)$(5,831)(242.7)%
Wholesale vehicles(2)(92)97.8 %(158)(332)52.4 %
Total vehicles(6,787)(701)(868.2)%(20,141)(6,163)(226.8)%
Parts, service and collision repair(138)(325)57.5 %(533)(894)40.4 %
Finance, insurance and other, net24,607 28,052 (12.3)%112,403 112,891 (0.4)%
Total gross profit$17,682 $27,026 (34.6)%$91,729 $105,834 (13.3)%
Unit Sales Volume:
Used vehicles10,794 12,548 (14.0)%48,446 49,392 (1.9)%
Wholesale vehicles1,673 1,751 (4.5)%6,388 5,774 10.6 %
Gross Profit Per Unit:
Total used vehicle and F&I$1,651 $2,187 (24.5)%$1,908 $2,168 (12.0)%






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

Three Months Ended December 31,Better / (Worse)
20202019Change% Change
(In thousands)
Reported:
Compensation$176,050 $184,455 $8,405 4.6 %
Advertising10,509 14,522 4,013 27.6 %
Rent13,560 13,303 (257)(1.9)%
Other58,858 48,641 (10,217)(21.0)%
Total SG&A expenses$258,977 $260,921 $1,944 0.7 %
Items of interest:
Gain on franchise and real estate disposals$6,039 $29,303 
Total SG&A adjustments$6,039 $29,303 
Adjusted:
Total adjusted SG&A expenses$265,016 $290,224 $25,208 8.7 %
Reported:
SG&A expenses as a % of gross profit:
Compensation45.2 %46.8 %160 bps
Advertising2.7 %3.7 %100 bps
Rent3.5 %3.4 %(10)bps
Other15.2 %12.3 %(290)bps
Total SG&A expenses as a % of gross profit66.6 %66.2 %(40)bps
Items of interest:
Gain on franchise and real estate disposals1.5 %7.5 %
Total effect of adjustments1.5 %7.5 %
Adjusted:
Total adjusted SG&A expenses as a % of gross profit68.1 %73.7 %560 bps
































SG&A Expenses - Non-GAAP Reconciliation (Continued)

Twelve Months Ended December 31,Better / (Worse)
20202019Change% Change
(In thousands)
Reported:
Compensation$659,834 $733,925 $74,091 10.1 %
Advertising42,186 60,831 18,645 30.7 %
Rent54,494 54,611 117 0.2 %
Other272,152 250,007 (22,145)(8.9)%
Total SG&A expenses$1,028,666 $1,099,374 $70,708 6.4 %
Items of interest:
Executive transition costs$— $(6,264)
Gain on franchise and real estate disposals9,188 75,983 
Total SG&A adjustments$9,188 $69,719 
Adjusted:
Total adjusted SG&A expenses$1,037,854 $1,169,093 $131,239 11.2 %
Reported:
SG&A expenses as a % of gross profit:
Compensation46.3 %48.3 %200 bps
Advertising3.0 %4.0 %100 bps
Rent3.8 %3.6 %(20)bps
Other19.2 %16.4 %(280)bps
Total SG&A expenses as a % of gross profit72.3 %72.3 %— bps
Items of interest:
Executive transition costs— %(0.4)%
Gain on franchise and real estate disposals0.6 %5.0 %
Total effect of adjustments0.6 %4.6 %
Adjusted:
Total adjusted SG&A expenses as a % of gross profit72.9 %76.9 %400 bps






Earnings Per Share from Continuing Operations - Non-GAAP Reconciliation

Three Months Ended December 31, 2020Three Months Ended December 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 operations44,022 $57,483 $1.31 44,463 $46,272 $1.04 
Pre-tax items of interest:
Gain on franchise and real estate disposals$(6,039)$(29,303)
Loss on debt extinguishment — 7,157 
Impairment charges1,158 17,692 
Total pre-tax items of interest $(4,881)$(4,454)
Tax effect of above items1,281 1,292 
Non-recurring tax items11,941 — 
Adjusted diluted earnings (loss) and shares from continuing operations44,022 $65,824 $1.50 44,463 $43,110 $0.97 



Twelve Months Ended December 31, 2020Twelve Months Ended December 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)
42,483 $(50,664)$(1.19)43,710 $144,537 $3.31 
Pre-tax items of interest:
Gain on franchise and real estate disposals$(9,188)$(75,983)
Executive transition costs— 6,264 
Loss on debt extinguishment— 7,157
Impairment charges269,158 19,618
Total pre-tax items of interest$259,970 $(42,944)
Tax effect of above items(40,421)14,193 
Adjusted diluted earnings (loss) and shares from continuing operations43,903 $168,885 $3.85 43,710 $115,786 $2.65 

(1) Basic weighted-average shares used for twelve months ended December 31, 2020 due to net loss on reported GAAP basis.





Adjusted EBITDA - Non-GAAP Reconciliation

Twelve Months Ended December 31, 2020Twelve Months Ended December 31, 2019
Franchised Dealerships SegmentEchoPark SegmentDiscontinued OperationsTotalFranchised Dealerships SegmentEchoPark SegmentDiscontinued OperationsTotal
(In thousands)
Net income (loss)$(51,385)$144,137 
Provision for income taxes15,619 54,954 
Income (loss) before taxes$(38,842)$4,078 $(1,002)$(35,766)$210,167 $(10,522)$(554)$199,091 
Non-floor plan interest (1)37,746 926 — 38,672 48,774 1,701 — 50,475 
Depreciation and amortization (2)82,807 11,115 — 93,922 85,093 10,553 — 95,646 
Stock-based compensation expense11,704 — — 11,704 10,797 — — 10,797 
Loss (gain) on exit of leased dealerships— — — — (170)— — (170)
Asset impairment charges270,017 — — 270,017 1,101 19,667 — 20,768 
Loss (gain) on debt extinguishment— — — — 6,690 — — 6,690 
Loss (gain) on franchise and real estate disposals(3,095)(5,152)— (8,247)(74,812)— — (74,812)
Adjusted EBITDA $360,337 $10,967 $(1,002)$370,302 $287,640 $21,399 $(554)$308,485 
Long-term debt (including current portion)$720,067 $706,886 
Cash and equivalents (170,313)(29,103)
Floor plan deposit balance(73,180)— 
Net debt $476,574 $677,783 
Net debt to adjusted EBITDA ratio1.29 2.20 
(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.