Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.21.1
Segment Information
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segment Information 10. Segment Information
As of March 31, 2021, Sonic had two operating segments: (1) retail automotive franchises that sell new vehicles and buy and sell used vehicles, sell replacement parts, perform vehicle maintenance, warranty and repair services, and arrange finance and insurance products (the “Franchised Dealerships Segment”); and (2) pre-owned vehicle specialty retail locations that provide guests an opportunity to search our nationwide inventory, purchase a pre-owned vehicle, select finance and insurance products and sell their current vehicle to us (the “EchoPark Segment”). Sonic has determined that its operating segments also represent its reportable segments.
The reportable 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 of three individuals consisting of: (1) the Company’s Chief Executive Officer; (2) the Company’s President; and (3) the Company’s Chief Financial Officer.
Reportable segment financial information for the three months ended March 31, 2021 and 2020 were as follows:
Three Months Ended March 31,
2021 2020
(In thousands)
Segment Revenues:
Franchised Dealerships Segment revenues:
New vehicles $ 1,156,317  $ 959,489 
Used vehicles 661,534  566,888 
Wholesale vehicles 56,204  42,440 
Parts, service and collision repair 308,077  324,501 
Finance, insurance and other, net 97,525  83,029 
Franchised Dealerships Segment revenues $ 2,279,657  $ 1,976,347 
EchoPark Segment revenues:
Used vehicles $ 428,563  $ 283,164 
Wholesale vehicles 18,605  6,103 
Parts, service and collision repair 12,837  10,179 
Finance, insurance and other, net 47,136  32,263 
EchoPark Segment revenues $ 507,141  $ 331,709 
Total consolidated revenues $ 2,786,798  $ 2,308,056 

Three Months Ended March 31,
2021 2020
(In thousands, except unit data)
Segment Income (Loss) (1):
Franchised Dealerships Segment $ 70,543  $ 22,656 
EchoPark Segment 2,010  2,096 
Total segment income (loss) $ 72,553  $ 24,752 
Impairment charges (2) —  (268,000)
Income (loss) from continuing operations before taxes $ 72,553  $ (243,248)
Retail New and Used Vehicle Unit Sales Volume:
Franchised Dealerships Segment 51,594  47,762 
EchoPark Segment 19,670  13,986 
Total retail new and used vehicle unit sales volume 71,264  61,748 

(1)Segment income (loss) for each segment is defined as income (loss) from continuing operations before taxes and impairment charges.
(2)For the three months ended March 31, 2020, the above amount includes a pre-tax impairment charge of approximately $268.0 million related to adjustments in fair value of goodwill for the Franchised Dealerships Segment as a result of the effects of the COVID-19 pandemic on our operations and market value.
Three Months Ended March 31,
2021 2020
(In thousands)
Impairment Charges:
Franchised Dealerships Segment $ —  $ 268,000 
EchoPark Segment —  — 
Total impairment charges $ —  $ 268,000 
Three Months Ended March 31,
2021 2020
(In thousands)
Depreciation and Amortization:
Franchised Dealerships Segment $ 20,376  $ 19,589 
EchoPark Segment 3,311  2,708 
Total depreciation and amortization $ 23,687  $ 22,297 

Three Months Ended March 31,
2021 2020
(In thousands)
Floor Plan Interest Expense:
Franchised Dealerships Segment $ 4,117  $ 9,608 
EchoPark Segment 996  900 
Total floor plan interest expense $ 5,113  $ 10,508 

Three Months Ended March 31,
2021 2020
(In thousands)
Interest Expense, Other, Net:
Franchised Dealerships Segment $ 9,958  $ 10,599 
EchoPark Segment 327  366 
Total interest expense, other, net $ 10,285  $ 10,965 

Three Months Ended March 31,
2021 2020
(In thousands)
Capital Expenditures:
Franchised Dealerships Segment $ 46,171  $ 17,249 
EchoPark Segment 21,492  2,556 
Total capital expenditures $ 67,663  $ 19,805 

March 31, 2021 December 31, 2020
(In thousands)
Assets:
Franchised Dealerships Segment assets $ 3,054,643  $ 3,096,811 
EchoPark Segment assets 560,346  478,869 
Corporate and other:
Cash and cash equivalents 77,233  170,313 
Other corporate assets 5  — 
Total assets $ 3,692,227  $ 3,745,993