Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.2.0.727
Segment Information
 6 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
Segment Information

11. Segment Information

 

As of June 30, 2015, Sonic had two operating segments: Franchised Dealerships and EchoPark®. The Franchised Dealerships segment is comprised of retail automotive franchises that sell new and used vehicles, replacement parts and vehicle repair and maintenance services, and finance and insurance products. The EchoPark® segment is comprised of stand-alone pre-owned specialty retail locations that provide customers an opportunity to search, buy, service and sell pre-owned vehicles.

 

The operating segments identified above are the business activities of Sonic for which discrete financial information is available and for which operating results are regularly reviewed by Sonic’s chief operating decision maker to assess operating performance and allocate resources. Sonic’s chief operating decision maker is a group consisting of the Company’s Executive Chairman, Chief Executive Officer and President and Chief Financial Officer. The Company has determined that its operating segments also represent its reportable segments.

 

Reportable segment revenue and segment income are as follows:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

 

(In thousands)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Franchised Dealerships

 

$

2,402,764

 

 

$

2,353,280

 

 

$

4,622,594

 

 

$

4,489,666

 

EchoPark®

 

 

20,976

 

 

 

-

 

 

 

36,662

 

 

 

-

 

Total consolidated revenues

 

$

2,423,740

 

 

$

2,353,280

 

 

$

4,659,256

 

 

$

4,489,666

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

 

(In thousands)

 

Segment income (loss) (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Franchised Dealerships

 

$

41,714

 

 

$

61,996

 

 

$

84,785

 

 

$

109,691

 

EchoPark®

 

 

(3,929

)

 

 

(3,244

)

 

 

(10,282

)

 

 

(4,985

)

Total segment income

 

 

37,785

 

 

 

58,752

 

 

 

74,503

 

 

 

104,706

 

Interest expense, other, net

 

 

(13,054

)

 

 

(13,865

)

 

 

(26,274

)

 

 

(27,683

)

Other income (expense), net

 

 

10

 

 

 

3

 

 

 

100

 

 

 

100

 

Income (loss) from continuing operations before taxes

 

$

24,741

 

 

$

44,890

 

 

$

48,329

 

 

$

77,123

 

(1)         Segment income (loss) for each segment is defined as operating income less floor plan interest expense.