| Summary of Reportable Operating Segment |
Reportable segment revenues and segment income (loss) for the three and six months ended June 30, 2018 and 2017 are as follows:
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2018 |
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2017 |
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2018 |
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2017 |
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(In thousands) |
Revenues: |
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Franchised Dealerships Segment |
$ |
2,325,583 |
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$ |
2,356,692 |
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$ |
4,594,852 |
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$ |
4,602,717 |
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Pre-Owned Stores Segment |
180,166 |
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49,054 |
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311,671 |
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90,851 |
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Total consolidated revenues |
$ |
2,505,749 |
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$ |
2,405,746 |
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$ |
4,906,523 |
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$ |
4,693,568 |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2018 |
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2017 |
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2018 |
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2017 |
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(In thousands) |
Segment income (loss) (1): |
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Franchised Dealerships Segment (2) |
$ |
66,049 |
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$ |
40,598 |
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$ |
89,885 |
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$ |
74,067 |
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Pre-Owned Stores Segment (3) |
(27,347 |
) |
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(7,571 |
) |
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(41,672 |
) |
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(12,978 |
) |
Total segment income (loss) |
38,702 |
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33,027 |
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48,213 |
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61,089 |
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Interest expense, other, net |
(13,375 |
) |
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(12,764 |
) |
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(26,831 |
) |
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(26,172 |
) |
Other income (expense), net |
17 |
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7 |
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106 |
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(14,495 |
) |
Income (loss) from continuing operations before taxes |
$ |
25,344 |
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$ |
20,270 |
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$ |
21,488 |
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$ |
20,422 |
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(1) |
Segment income (loss) for each segment is defined as operating income (loss) less interest expense, floor plan. |
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(2) |
For the three months ended June 30, 2018, the above amount includes a benefit of approximately $38.0 million of net gain on the disposal of franchised dealerships and approximately $2.6 million of lease exit benefit, offset partially by approximately $3.1 million of storm-related physical damage and legal costs and approximately $10.3 million of impairment expense. For the three months ended June 30, 2017, the above amount includes approximately $5.6 million of storm-related physical damage and legal costs and approximately $0.3 million of lease exit charges.
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For the six months ended June 30, 2018, the above amount includes a benefit of approximately $39.2 million of net gain on the disposal of franchised dealerships, offset partially by approximately $4.6 million of storm-related physical damage and legal costs, approximately $2.2 million of lease exit charges and approximately $14.0 million of impairment expense. For the six months ended June 30, 2017, the above amount includes approximately $6.9 million of storm-related physical damage and legal costs and approximately $0.3 million of lease exit charges.
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(3) |
For the three months ended June 30, 2018, the above amount includes approximately $23.3 million of non-recurring compensation-related charges. For the three months ended June 30, 2017, the above amount includes approximately $0.7 million of lease exit charges.
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For the six months ended June 30, 2018, the above amount includes approximately $32.5 million of non-recurring compensation-related charges. For the six months ended June 30, 2017, the above amount includes approximately $0.7 million of lease exit charges.
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