Exhibit 99.1

Sonic Automotive Reports Record Third Quarter Revenues and Earnings Per Share

Fifth Consecutive Quarter of Record EchoPark Revenues, Up 72% Year-Over-Year
Pending Acquisition of RFJ Auto Expected to Add $3.2 Billion in Annualized Revenues
Recently Amended Credit Facilities and Senior Notes Issuance Extend Runway for Further Growth

CHARLOTTE, N.C. – October 28, 2021 – Sonic Automotive, Inc. (“Sonic Automotive,” “Sonic” or the “Company”) (NYSE:SAH), one of the nation’s largest automotive retailers, today reported financial results for the third quarter and nine months ended September 30, 2021.

Key Highlights

•Record third quarter revenues of $3.1 billion, up 20.6% year-over-year
•Record third quarter income from continuing operations before taxes of $112.2 million, up 39.1% year-over-year
•Record third quarter earnings from continuing operations of $84.7 million ($1.96 per diluted share)
•Record third quarter selling, general and administrative (“SG&A”) expenses as a percentage of gross profit of 68.1% (60.1% on a Franchised Dealerships Segment basis, a decrease of 670 basis points year-over-year)
•All-time record quarterly total Finance & Insurance (“F&I”) gross profit per retail unit of $2,349, up 21.2% year-over-year
•All-time record quarterly EchoPark revenues of $663.3 million, up 72.3% year-over-year
•Sonic announced a definitive agreement to acquire RFJ Auto Partners, Inc. (“RFJ Auto”), a top-15 U.S. dealer group by total revenues, which is expected to add $3.2 billion in revenues on an annualized basis
•During the third quarter, Sonic repurchased 0.5 million shares of Class A Common Stock for an aggregate purchase price of $24.8 million
•In October, the Company amended its credit facilities to increase revolver and floor plan commitments from $1.8 billion to $2.95 billion, in addition to completing an upsized offering of $1.15 billion aggregate principal amount of unsecured senior notes due 2029 and 2031 at a blended rate of 4.73%, with expected use of net proceeds to fund the acquisition of RFJ Auto, the redemption of outstanding notes, and for general corporate purposes, including the repayment of debt

Commentary
David Smith, Chief Executive Officer of Sonic and EchoPark, commented, “I am extremely proud of our team for delivering continued year-over-year growth, in particular against a backdrop of industry-wide inventory headwinds and supply chain disruptions. Our results highlight the operating efficiency of our model, the unwavering dedication of our teammates, and our disciplined focus on driving growth across our franchised dealerships and EchoPark segments. After meeting with much of the RFJ Auto team in recent weeks, we are excited to welcome them into the Sonic family and are grateful for the support of our manufacturer and banking partners for their roles in facilitating this acquisition, which puts us on track to exceed our previously-stated goal of $25 billion in total revenues by 2025. Together, I’m confident that we will continue to strengthen the guest-centric culture that is essential to our brand and the success of our business.”
“I’d like to echo that sentiment by recognizing our manufacturer partners and the entire RFJ Auto team for creating the opportunity for this acquisition, which will launch us forward into the next phase of our company’s growth plan,” said Jeff Dyke, President of Sonic and EchoPark. “As we continue to expand our EchoPark distribution and digital network, adding six locations in four new states since the second quarter, we are well-positioned to achieve our goals of 25% U.S. population coverage by the end of 2021 and 90% U.S. population coverage by 2025. Further supporting our commitment to EchoPark, we recently announced the appointment of Dino Bernacchi as Chief Marketing Officer and Thien Truong as Chief Revenue Officer for EchoPark. With their extensive expertise and diverse backgrounds, they will be instrumental additions in executing the long-term EchoPark strategy.”
Heath Byrd, Chief Financial Officer of Sonic and EchoPark, added, “We recently announced an amendment to our credit facilities, increasing total capacity to $2.95 billion, and capitalized on favorable market conditions and an upgraded corporate credit rating by issuing $1.15 billion of unsecured senior notes. This extends our debt maturities, refinances existing debt at a lower cost of capital and provides funding for the pending acquisition of RFJ Auto. I’d like to thank our lender partners and bondholders for recognizing the strength of our balance sheet and favorable operating outlook, which position us to continue to opportunistically evaluate strategic


acquisitions, allocate capital to our EchoPark expansion plans and return capital to stockholders through our dividend and share repurchase programs.”

Third Quarter Financial Highlights

The financial measures discussed below are results for the third quarter of 2021 with comparisons made to the third quarter of 2020, unless otherwise noted. Certain metrics are also compared to the third quarter of 2019 to exclude the effects of the onset of the COVID-19 pandemic on comparative results.

•Record third quarter revenues of $3.1 billion, up 20.6% year-over-year (up 13.7% compared to the third quarter of 2019), and record third quarter income from continuing operations before taxes of $112.2 million, up 39.1% year-over-year (up 176.9% compared to the third quarter of 2019)
•Record third quarter earnings from continuing operations of $84.7 million ($1.96 per diluted share), compared to third quarter 2020 reported earnings from continuing operations of $60.0 million ($1.35 per diluted share) and adjusted earnings from continuing operations* of $57.7 million ($1.29 per diluted share)
•Record third quarter SG&A expenses as a percentage of gross profit of 68.1%, a 20 basis point decrease from 68.3% in the third quarter of 2020 (a 100 basis point decrease from adjusted SG&A expenses as a percentage of gross profit* of 69.1% in the third quarter of 2020, which excludes a $3.2 million gain on disposal of franchises and real estate)
•All-time record quarterly total F&I gross profit per retail unit of $2.349, up 21.2% year-over-year
•Franchised Dealerships Segment operating results include:
◦Same store revenues up 11.3%, gross profit up 27.2% (up 5.19% and 30.0%, respectively, compared to the third quarter of 2019)
◦Same store new vehicle unit sales volume down 5.1% (down 19.0% compared to the third quarter of 2019); same store new vehicle gross profit per unit up 93.2%, to $5,051 (up 168.4% compared to the third quarter of 2019)
◦Same store retail used vehicle unit sales volume down 0.3% (down 11.4% compared to the third quarter of 2019); same store retail used vehicle gross profit per unit up 31.9%, to $1,835 (up 45.8% compared to the third quarter of 2019)
◦Same store parts, service and collision repair gross profit up 9.0% (up 4.5% compared to the third quarter of 2019); same store customer pay gross profit up 21.3% (up 19.9% compared to the third quarter of 2019); same store gross margin down 40 basis points, to 50.2% (up 110 basis points compared to the third quarter of 2019)
◦Same store F&I gross profit up 20.8% (up 19.1% compared to the third quarter of 2019); all-time record reported Franchised Dealerships Segment F&I gross profit per retail unit of $2,303, up 27.2% (up 39.9% compared to the third quarter of 2019)
◦Record third quarter Franchised Dealerships Segment SG&A expenses as a percentage of gross profit of 60.1%, a 670 basis point decrease from 66.8% in the third quarter of 2020 (a decrease of 1,680 basis points from 76.9% in the third quarter of 2019)
◦Franchised dealerships new vehicle inventory of approximately 2,400 units, or 10 days’ supply, and used vehicle inventory of approximately 8,200 units, or 27 days’ supply
•EchoPark Segment operating results include:
◦All-time record quarterly EchoPark revenues of $663.3 million, up 72.3% year-over-year (up 112.5% compared to the third quarter of 2019)
◦Record third quarter EchoPark retail used vehicle unit sales volume of 21,255, up 40.5% year-over-year (up 60.9% compared to the third quarter of 2019)
◦EchoPark market share increase of 110 basis points, to 3.7% of the 1-4-year old vehicle segment in our current markets
◦EchoPark pre-tax loss of $32.9 million and Adjusted EBITDA* loss of $28.5 million (including market expansion-related losses of $18.0 million and $16.8 million, respectively)
◦EchoPark loss reflects expansion-related losses and the effect of strategic price management to grow top line sales and market share amidst temporary used market pricing inversion
◦EchoPark used vehicle inventory of approximately 9,800 units, or 41 days’ supply

* Please refer to discussion of Non-GAAP Financial Measures below.


Acquisition of RFJ Auto

The Company recently announced that it entered into a definitive agreement to acquire RFJ Auto. With 33 locations in seven states and a portfolio of 16 automotive brands, the transaction will add six incremental states to Sonic’s geographic coverage and five additional brands to its portfolio, including the highest volume Chrysler Dodge Jeep RAM dealer in the world in Dave Smith Motors. RFJ Auto generated $2.8 billion in annual revenues in 2020, making it a top-15 U.S. dealer group by total revenues. This acquisition, which is anticipated to close in December 2021, represents one of the largest transactions in automotive retail history and is expected to propel Sonic Automotive into the top-five largest dealer groups in the U.S. as measured by total revenues. The transaction is expected to add $3.2 billion in annualized revenues, representing incremental revenues above the Company’s previously stated target of $25 billion in total revenues by 2025.

EchoPark Strategic Alternatives Review

As previously announced, Sonic’s Board of Directors, working together with Lazard and Kirkland & Ellis LLP as financial and legal advisors, respectively, is conducting a review to evaluate potential strategic alternatives for its EchoPark business. The Company is considering a full range of potential alternatives with respect to its EchoPark business. No timetable has been established for the completion of the review, and the review may not result in any transaction. The Company does not intend to disclose further developments with respect to its review process unless and until its Board approves a specific action or otherwise concludes the review.

Dividend

Sonic’s Board of Directors approved a quarterly cash dividend of $0.12 per share payable on January 14, 2022 to all stockholders of record on December 15, 2021.

Third Quarter 2021 Earnings Conference Call

Senior management will hold a conference call today at 11:00 A.M. (Eastern).

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

To access the live webcast of the conference call, please go to ir.sonicautomotive.com.

For telephone access to this conference call, please register in advance using this link:
https://www.incommglobalevents.com/registration/q4inc/8939/sonic-automotive-inc-q3-2021-earnings-conference-call/
After registering, you will receive a confirmation that includes dial-in numbers and a unique conference call access code and PIN 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 beginning two hours 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 on a quest to become the most valuable automotive retailer and service brand in America. Our Company culture thrives on creating, innovating, and providing industry-leading guest experiences, driven by strategic investments in technology, teammates, and ideas that ultimately fulfill ownership dreams, enrich lives, and deliver happiness to our guests and teammates. As one of the largest automotive retailers in America, we are committed to delivering on this goal while pursuing expansive growth and taking progressive measures to be the leader in this category. Our new platforms, programs, and people are set to drive the next generation of automotive experiences. More information about Sonic Automotive can be found at www.sonicautomotive.com and ir.sonicautomotive.com.



About EchoPark Automotive

EchoPark Automotive is one of the fastest growing and most comprehensive retailers of nearly new pre-owned vehicles in America today. Our rapid growth plan is expected to bring our unique business model to 90% of the U.S. population by 2025, utilizing one of the most innovative technology-enabled sales strategies in our industry. Our approach provides a personalized and proven guest-centric buying process that consistently delivers award winning guest experiences and superior value to car buyers nationwide, with savings of up to $3,000 versus the competition. We believe EchoPark is on pace to become the #1 retailer in the nearly new pre-owned vehicle market by 2025, and is already making its mark by earning the 2021 Consumer Satisfaction Award from DealerRater, expanding its Owner Experience Centers, developing an all-new digital ecommerce platform and focusing on growing its brand nationwide. EchoPark’s mission is in its name: Every Car deserves a Happy Owner. This drives the car buying experience for guests and differentiates EchoPark from the competition. 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 acquisitions, expected future revenue from acquisitions, future revenue levels, future profitability, the opening of additional EchoPark markets, and future population coverage. 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 closing and integration of the RFJ Auto acquisition, 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, 2020 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 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 / Joshua Greenwald
212-896-1272 / 646-379-7971
ddevoren@kcsa.com/jgreenwald@kcsa.com



Sonic Automotive, Inc.
Results of Operations (Unaudited)

Results of Operations - Consolidated
Three Months Ended
September 30,		Better / (Worse)Nine Months Ended
September 30,		Better / (Worse)
20212020% Change20212020% Change
(In thousands, except per share amounts)
Revenues:
New vehicles$1,146,922 $1,098,302 4.4 %$3,766,133 $2,957,794 27.3 %
Used vehicles1,309,492 946,028 38.4 %3,666,286 2,604,957 40.7 %
Wholesale vehicles97,087 56,502 71.8 %256,701 138,221 85.7 %
Total vehicles2,553,501 2,100,832 21.5 %7,689,120 5,700,972 34.9 %
Parts, service and collision repair355,227 320,929 10.7 %1,036,736 914,667 13.3 %
Finance, insurance and other, net164,084 126,784 29.4 %486,000 352,848 37.7 %
Total revenues3,072,812 2,548,545 20.6 %9,211,856 6,968,487 32.2 %
Cost of sales:
New vehicles(1,031,476)(1,035,624)0.4 %(3,462,795)(2,804,314)(23.5)%
Used vehicles(1,289,772)(917,993)(40.5)%(3,580,944)(2,517,421)(42.2)%
Wholesale vehicles(95,832)(53,958)(77.6)%(250,072)(136,260)(83.5)%
Total vehicles(2,417,080)(2,007,575)(20.4)%(7,293,811)(5,457,995)(33.6)%
Parts, service and collision repair(183,713)(164,403)(11.7)%(534,325)(475,964)(12.3)%
Total cost of sales(2,600,793)(2,171,978)(19.7)%(7,828,136)(5,933,959)(31.9)%
Gross profit472,019 376,567 25.3 %1,383,720 1,034,528 33.8 %
Selling, general and administrative expenses(321,373)(257,174)(25.0)%(931,349)(769,688)(21.0)%
Impairment charges— (26)100.0 %— (268,859)100.0 %
Depreciation and amortization(25,239)(22,934)(10.1)%(73,687)(67,879)(8.6)%
Operating income (loss)125,407 96,433 30.0 %378,684 (71,898)626.7 %
Other income (expense):
Interest expense, floor plan(3,340)(4,999)33.2 %(12,781)(21,821)41.4 %
Interest expense, other, net(9,817)(10,762)8.8 %(30,180)(31,523)4.3 %
Other income (expense), net— 1 (100.0)%100 100 — %
Total other income (expense)(13,157)(15,760)16.5 %(42,861)(53,244)19.5 %
Income (loss) from continuing operations before taxes112,250 80,673 39.1 %335,823 (125,142)368.4 %
Provision for income taxes for continuing operations - benefit (expense)(27,559)(20,685)(33.2)%(83,452)16,995 (591.0)%
Income (loss) from continuing operations84,691 59,988 41.2 %252,371 (108,147)333.4 %
Discontinued operations:
Income (loss) from discontinued operations before taxes(275)(234)(17.5)%241 (808)129.8 %
Provision for income taxes for discontinued operations - benefit (expense)69 64 7.8 %(60)231 (126.0)%
Income (loss) from discontinued operations(206)(170)(21.2)%181 (577)131.4 %
Net income (loss)$84,485 $59,818 41.2 %$252,552 $(108,724)332.3 %
Basic earnings (loss) per common share:
Earnings (loss) per share from continuing operations$2.04 $1.41 44.7 %$6.07 $(2.53)339.9 %
Earnings (loss) per share from discontinued operations(0.01)— (100.0)%0.01 (0.02)150.0 %
Earnings (loss) per common share$2.03 $1.41 44.0 %$6.08 $(2.55)338.4 %
Weighted-average common shares outstanding41,561 42,510 2.2 %41,561 42,687 2.6 %
Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations$1.96 $1.35 45.2 %$5.81 $(2.53)329.6 %
Earnings (loss) per share from discontinued operations(0.01)(0.01)— %0.01 (0.02)150.0 %
Earnings (loss) per common share$1.95 $1.34 45.5 %$5.82 $(2.55)328.2 %
Weighted-average common shares outstanding43,285 44,577 2.9 %43,416 42,687 (1.7)%
Dividends declared per common share$0.12 $0.10 20.0 %$0.34 $0.30 13.3 %





Franchised Dealerships Segment - Reported
Three Months Ended September 30,Better / (Worse)Nine Months Ended September 30,Better / (Worse)
20212020% Change20212020% Change
(In thousands, except unit and per unit data)
Revenues:
New vehicles$1,143,416 $1,098,302 4.1 %$3,761,718 $2,957,794 27.2 %
Used vehicles750,263 615,565 21.9 %2,173,322 1,718,151 26.5 %
Wholesale vehicles64,052 48,526 32.0 %183,212 119,474 53.3 %
Total vehicles1,957,731 1,762,393 11.1 %6,118,252 4,795,419 27.6 %
Parts, service and collision repair339,930 310,035 9.6 %994,125 886,534 12.1 %
Finance, insurance and other, net111,808 91,035 22.8 %333,394 254,465 31.0 %
Total revenues2,409,469 2,163,463 11.4 %7,445,771 5,936,418 25.4 %
Gross Profit:
New vehicles115,204 62,678 83.8 %302,994 153,480 97.4 %
Used vehicles50,104 34,385 45.7 %137,321 97,114 41.4 %
Wholesale vehicles(1,986)2,556 (177.7)%186 2,116 (91.2)%
Total vehicles163,322 99,619 63.9 %440,501 252,710 74.3 %
Parts, service and collision repair171,064 156,711 9.2 %501,908 439,272 14.3 %
Finance, insurance and other, net111,808 91,035 22.8 %333,394 254,465 31.0 %
Total gross profit446,194 347,365 28.5 %1,275,803 946,447 34.8 %
Selling, general and administrative expenses(268,337)(231,882)(15.7)%(794,123)(697,796)(13.8)%
Impairment charges— (26)NM— (268,859)NM
Depreciation and amortization(21,266)(20,170)(5.4)%(62,258)(59,654)(4.4)%
Operating income (loss)156,591 95,287 64.3 %419,422 (79,862)625.2 %
Other income (expense):
Interest expense, floor plan(1,973)(4,234)53.4 %(9,243)(19,517)52.6 %
Interest expense, other, net(9,477)(10,615)10.7 %(29,158)(30,771)5.2 %
Other income (expense), net(4)(4)— %73 96 (24.0)%
Total other income (expense)(11,454)(14,853)22.9 %(38,328)(50,192)23.6 %
Income (loss) before taxes145,137 80,434 80.4 %381,094 (130,054)393.0 %
Add: impairment charges— 26 NM— 268,859 NM
Segment income (loss)$145,137 $80,460 80.4 %$381,094 $138,805 174.6 %
Unit Sales Volume:
New vehicles22,791 24,100 (5.4)%77,637 65,715 18.1 %
Used vehicles26,274 26,363 (0.3)%82,060 76,374 7.4 %
Wholesale vehicles6,119 6,679 (8.4)%19,704 18,416 7.0 %
Retail new & used vehicles48,554 50,297 (3.5)%158,400 141,188 12.2 %
Used-to-New Ratio1.15 1.09 5.4 %1.06 1.16 (9.1)%
Gross Profit Per Unit:
New vehicles$5,055 $2,601 94.3 %$3,903 $2,336 67.1 %
Used vehicles$1,907 $1,304 46.2 %$1,673 $1,272 31.5 %
Finance, insurance and other, net$2,303 $1,810 27.2 %$2,105 $1,802 16.8 %
NM = Not Meaningful



Franchised Dealerships Segment - Same Store
Three Months Ended September 30,Better / (Worse)Nine Months Ended September 30,Better / (Worse)
20212020% Change20212020% Change
(In thousands, except unit and per unit data)
Revenues:
New vehicles$1,137,465 $1,091,592 4.2 %$3,755,766 $2,935,140 28.0 %
Used vehicles745,754 612,363 21.8 %2,168,814 1,704,494 27.2 %
Wholesale vehicles63,886 48,290 32.3 %183,047 118,629 54.3 %
Total vehicles1,947,105 1,752,245 11.1 %6,107,627 4,758,263 28.4 %
Parts, service and collision repair338,141 307,614 9.9 %992,291 874,636 13.5 %
Finance, insurance and other, net103,746 85,911 20.8 %312,649 238,125 31.3 %
Total revenues2,388,992 2,145,770 11.3 %7,412,567 5,871,024 26.3 %
Gross Profit:
New vehicles114,308 62,360 83.3 %301,616 152,487 97.8 %
Used vehicles47,860 36,411 31.4 %137,158 101,259 35.5 %
Wholesale vehicles770 2,686 (71.3)%5,705 2,348 143.0 %
Total vehicles162,938 101,457 60.6 %444,479 256,094 73.6 %
Parts, service and collision repair169,700 155,682 9.0 %499,714 433,629 15.2 %
Finance, insurance and other, net103,746 85,911 20.8 %312,649 238,125 31.3 %
Total gross profit$436,384 $343,050 27.2 %$1,256,842 $927,848 35.5 %
Unit Sales Volume:
New vehicles22,631 23,852 (5.1)%77,477 64,893 19.4 %
Used vehicles26,084 26,168 (0.3)%81,870 75,504 8.4 %
Wholesale vehicles6,095 6,630 (8.1)%19,680 18,241 7.9 %
Retail new & used vehicles48,204 49,854 (3.3)%158,050 139,496 13.3 %
Used-to-New Ratio1.15 1.10 5.1 %1.06 1.16 (9.2)%
Gross Profit Per Unit:
New vehicles$5,051 $2,614 93.2 %$3,893 $2,350 65.7 %
Used vehicles$1,835 $1,391 31.9 %$1,675 $1,341 24.9 %
Finance, insurance and other, net$2,152 $1,723 24.9 %$1,978 $1,707 15.9 %

Note: All currently operating franchised dealership stores are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition.



EchoPark Segment - Reported
Three Months Ended September 30,Better / (Worse)Nine Months Ended September 30,Better / (Worse)
20212020% Change20212020% Change
(In thousands, except unit and per unit data)
Revenues:
New vehicles$3,506 $— 100.0 %$4,415 $— 100.0 %
Used vehicles559,229 330,463 69.2 %1,492,964 886,806 68.4 %
Wholesale vehicles33,035 7,976 314.2 %73,489 18,747 292.0 %
Total vehicles595,770 338,439 76.0 %1,570,868 905,553 73.5 %
Parts, service and collision repair15,297 10,894 40.4 %42,611 28,133 51.5 %
Finance, insurance and other, net52,276 35,749 46.2 %152,606 98,383 55.1 %
Total revenues663,343 385,082 72.3 %1,766,085 1,032,069 71.1 %
Gross Profit:
New vehicles243 — 100.0 %343 — 100.0 %
Used vehicles(30,384)(6,350)(378.5)%(51,979)(9,578)(442.7)%
Wholesale vehicles3,241 (12)NM6,443 (155)NM
Total vehicles(26,900)(6,362)(322.8)%(45,193)(9,733)(364.3)%
Parts, service and collision repair449 (185)342.7 %504 (569)188.4 %
Finance, insurance and other, net52,276 35,749 46.2 %152,606 98,383 55.1 %
Total gross profit25,825 29,202 (11.6)%107,917 88,081 22.5 %
Selling, general and administrative expenses(53,036)(25,292)(109.7)%(137,226)(71,892)(90.9)%
Impairment charges— — — %— — — %
Depreciation and amortization(3,973)(2,764)(43.7)%(11,429)(8,225)(39.0)%
Operating income (loss)(31,184)1,146 (2,821.1)%(40,738)7,964 (611.5)%
Other income (expense):
Interest expense, floor plan(1,367)(765)(78.7)%(3,538)(2,304)(53.6)%
Interest expense, other, net(340)(147)(131.3)%(1,022)(752)(35.9)%
Other income (expense), net4 5 (20.0)%27 4 575.0 %
Total other income (expense)(1,703)(907)(87.8)%(4,533)(3,052)(48.5)%
Income (loss) before taxes(32,887)239 NM(45,271)4,912 NM
Add: impairment charges— — NM— — NM
Segment income (loss)$(32,887)$239 NM$(45,271)$4,912 NM
Unit Sales Volume:
New vehicles55 — 100.0 %69 — 100.0 %
Used vehicles21,255 15,127 40.5 %62,186 42,320 46.9 %
Wholesale vehicles3,492 1,955 78.6 %9,231 5,174 78.4 %
Gross Profit Per Unit:
Total used vehicle and F&I $1,030 $1,943 (47.0)%$1,618 $2,098 (22.9)%

NM = Not Meaningful



EchoPark Segment - Same Market
Three Months Ended September 30,Better / (Worse)Nine Months Ended September 30,Better / (Worse)
20212020% Change20212020% Change
(In thousands, except unit and per unit data)
Revenues:
Used vehicles$400,050 $330,520 21.0 %$1,139,032 $886,873 28.4 %
Wholesale vehicles24,186 7,977 203.2 %55,275 18,747 194.8 %
Total vehicles424,236 338,497 25.3 %1,194,307 905,620 31.9 %
Parts, service and collision repair11,866 10,858 9.3 %33,714 28,064 20.1 %
Finance, insurance and other, net37,045 35,669 3.9 %116,003 98,099 18.3 %
Total revenues473,147 385,024 22.9 %1,344,024 1,031,783 30.3 %
Gross Profit:
Used vehicles(20,015)(12,115)(65.2)%(38,344)(22,818)(68.0)%
Wholesale vehicles2,328 (13)NM4,768 (157)NM
Total vehicles(17,687)(12,128)(45.8)%(33,576)(22,975)(46.1)%
Parts, service and collision repair593 (168)453.0 %947 (553)271.2 %
Finance, insurance and other, net37,045 35,669 3.9 %116,003 98,099 18.3 %
Total gross profit$19,951 $23,373 (14.6)%$83,374 $74,571 11.8 %
Unit Sales Volume:
Used vehicles14,828 15,127 (2.0)%46,864 42,320 10.7 %
Wholesale vehicles2,226 1,955 13.9 %6,386 5,174 23.4 %
Gross Profit Per Unit:
Total used vehicle and F&I$1,149 $1,557 (26.2)%$1,657 $1,779 (6.9)%
NM = Not Meaningful

Note: All currently operating EchoPark stores in a local geographic market are included within the same market group as of the first full month following the first anniversary of the market's opening.




Selling, General and Administrative ("SG&A") Expenses - Consolidated

Three Months Ended September 30,Better / (Worse)
20212020Change% Change
(In thousands)
Reported:
Compensation$206,205 $169,097 $(37,108)(21.9)%
Advertising16,715 9,455 (7,260)(76.8)%
Rent13,781 13,846 65 0.5 %
Other84,672 64,776 (19,896)(30.7)%
Total SG&A expenses$321,373 $257,174 $(64,199)(25.0)%
Items of interest:
Gain (loss) on franchise disposals$— $3,150 
Total SG&A adjustments$— $3,150 
Adjusted:
Total adjusted SG&A expenses$321,373 $260,324 $(61,049)(23.5)%
Reported:
SG&A expenses as a % of gross profit:
Compensation43.7 %44.9 %120 bps
Advertising3.5 %2.5 %(100)bps
Rent2.9 %3.7 %80 bps
Other18.0 %17.2 %(80)bps
Total SG&A expenses as a % of gross profit68.1 %68.3 %20 bps
Items of interest:
Gain (loss) on franchise disposals— %0.8 %
Total effect of adjustments— %0.8 %
Adjusted:
Total adjusted SG&A expenses as a % of gross profit68.1 %69.1 %100 bps




Selling, General and Administrative ("SG&A") Expenses - Consolidated

Nine Months Ended September 30,Better / (Worse)
20212020Change% Change
(In thousands)
Reported:
Compensation$608,539 $483,784 $(124,755)(25.8)%
Advertising44,229 31,677 (12,552)(39.6)%
Rent41,190 40,934 (256)(0.6)%
Other237,391 213,293 (24,098)(11.3)%
Total SG&A expenses$931,349 $769,688 $(161,661)(21.0)%
Items of interest:
Gain (loss) on franchise disposals$— $3,150 
Total SG&A adjustments$— $3,150 
Adjusted:
Total adjusted SG&A expenses$931,349 $772,838 $(158,511)(20.5)%
Reported:
SG&A expenses as a % of gross profit:
Compensation44.0 %46.8 %280 bps
Advertising3.2 %3.1 %(10)bps
Rent3.0 %4.0 %100 bps
Other17.1 %20.5 %340 bps
Total SG&A expenses as a % of gross profit67.3 %74.4 %710 bps
Items of interest:
Gain (loss) on franchise disposals— %0.3 %
Total effect of adjustments— %0.3 %
Adjusted:
Total adjusted SG&A expenses as a % of gross profit67.3 %74.7 %740 bps





Earnings Per Share from Continuing Operations - Non-GAAP Reconciliation

Three Months Ended September 30, 2021Three Months Ended September 30, 2020
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 operations43,285 $84,691 $1.96 44,577 $59,988 $1.35 
Pre-tax items of interest:
(Gain) loss on franchise disposals$— $(3,150)
Total pre-tax items of interest $— $(3,150)
Tax effect of above items— 827 
Adjusted diluted earnings (loss) and shares from continuing operations43,285 $84,691 $1.96 44,577 $57,665 $1.29 


Nine Months Ended September 30, 2021Nine Months Ended September 30, 2020
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)
43,416 $252,371 $5.81 42,687 $(108,147)$(2.53)
Pre-tax items of interest:
(Gain) loss on franchise disposals$— $(3,150)
Impairment charges— 268,000 
Total pre-tax items of interest$— $264,850 
Tax effect of above items— (53,643)
Adjusted diluted earnings (loss) and shares from continuing operations43,416 $252,371 $5.81 43,864 $103,060 $2.35 


(1) Basic weighted-average shares used for nine months ended September 30, 2020 due to net loss on GAAP basis.








Adjusted EBITDA - Non-GAAP Reconciliation
Three Months Ended September 30, 2021Three Months Ended September 30, 2020
Franchised Dealerships SegmentEchoPark SegmentDiscontinued OperationsTotalFranchised Dealerships SegmentEchoPark SegmentDiscontinued OperationsTotal
(In thousands)
Net income (loss)$84,485 $59,818 
Provision for income taxes27,490 20,620 
Income (loss) before taxes$145,138 $(32,888)$(275)$111,975 $80,434 $239 $(235)$80,438 
Non-floor plan interest 8,799 333 — 9,132 9,781 147 — 9,928 
Depreciation and amortization21,943 3,980 — 25,923 21,004 2,763 — 23,767 
Stock-based compensation expense3,681 — — 3,681 3,153 — — 3,153 
Asset impairment charges— — — — 26 — — 26 
Long-term compensation charges— 500 — 500 — — — — 
Loss (gain) on franchise and real estate disposals(12)(423)— (435)(3,388)— (3,388)
Adjusted EBITDA $179,549 $(28,498)$(275)$150,776 $111,010 $3,149 $(235)$113,924 

Nine Months Ended September 30, 2021Nine Months Ended September 30, 2020
Franchised Dealerships SegmentEchoPark SegmentDiscontinued OperationsTotalFranchised Dealerships SegmentEchoPark SegmentDiscontinued OperationsTotal
(In thousands)
Net income (loss)$252,552 $(108,724)
Provision for income taxes83,512 (17,226)
Income (loss) before taxes$381,094 $(45,271)$241 $336,064 $(130,054)$4,912 $(808)$(125,950)
Non-floor plan interest 26,821 1,015 — 27,836 28,762 746 — 29,508 
Depreciation & amortization64,593 11,436 — 76,029 61,662 8,229 — 69,891 
Stock-based compensation expense11,155 — — 11,155 8,551 — — 8,551 
Asset impairment charges— — — — 268,859 — — 268,859 
Long-term compensation charges— 1,500 — 1,500 — — — — 
Loss (gain) on franchise and real estate disposals(433)(432)— (865)(2,271)— — (2,271)
Adjusted EBITDA $483,230 $(31,752)$241 $451,719 $235,509 $13,887 $(808)$248,588