Annual report pursuant to Section 13 and 15(d)

Segment Information (Tables)

v3.19.3.a.u2
Segment Information (Tables)
 3 Months Ended 12 Months Ended
Dec. 31, 2019
USD ($)
Sep. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Sep. 30, 2018
USD ($)
Jun. 30, 2018
USD ($)
Mar. 31, 2018
USD ($)
Dec. 31, 2019
USD ($)
retail_Units
Dec. 31, 2018
USD ($)
retail_Units
Dec. 31, 2017
USD ($)
retail_Units
Segment Reporting Information [Line Items]                      
Total capital expenditures                 $ 125,576,000 $ 163,619,000 $ 234,245,000
Legal Costs                 1,700,000    
EchoPark Capital Expenditures                 36,244,000 46,765,000 39,025,000
Franchised Dealerships Capital Expenditures                 89,332,000 116,854,000 195,220,000
EchoPark Interest Expense, Other, Net                 1,722,000 1,663,000 976,000
Franchised Segment Interest Expense, Other, Net                 51,231,000 52,396,000 51,548,000
Franchised Dealerships Segment Impairment                 1,100,000    
EchoPark Lease exit expense                     600,000
Lease exit expense                 (4,634,000) 1,400,000 300,000
Gain on Franchise Disposal                 76,000,000.0 38,900,000 10,000,000.0
Double Carry Interest                 (500,000)   700,000
Debt Extinguishment Costs                 7,200,000   14,600,000
Executive transition costs           $ 1,600,000     6,300,000 1,600,000 1,300,000
Total Storm Damage Charges                     8,900,000
EchoPark Storm Damage Charges                     200,000
Franchised Dealerships Storm Damage Charges                 4,000,000.0    
EchoPark Segment Assets $ 244,054,000       $ 305,673,000       244,054,000 305,673,000  
Franchised Dealerships Segment Assets 3,797,878,000       3,485,280,000       3,797,878,000 3,485,280,000  
EchoPark Depreciation and Amortization                 10,533,000 7,774,000 5,203,000
Franchised Dealerships Depreciation and Amortization                 $ 82,636,000 85,849,000 83,741,000
Summary of Reportable Operating Segment                
Reportable segment revenues, segment income (loss), impairment charges, depreciation and amortization, floor plan interest expense, interest expense, other, net, capital expenditures and assets are as follows:
Year Ended December 31,
2019 2018 2017
Segment revenues (In thousands)
Franchised Dealerships Segment revenues:
New vehicles $ 4,889,171    $ 4,974,097    $ 5,295,051   
Used vehicles 2,493,467    2,370,799    2,406,407   
Wholesale vehicles 180,020    197,184    161,581   
Parts, service and collision repair 1,366,550    1,364,559    1,401,802   
Finance, insurance and other, net 363,117    344,814    348,058   
Franchised Dealerships Segment revenues $ 9,292,325    $ 9,251,453    $ 9,612,899   
EchoPark Segment revenues:
Used vehicles $ 996,504    $ 602,698    $ 215,646   
Wholesale vehicles 22,927    20,443    9,483   
Parts, service and collision repair 28,753    16,327    14,208   
Finance, insurance and other, net 113,834    60,709    14,972   
EchoPark Segment revenues $ 1,162,018    $ 700,177    $ 254,309   
Total consolidated revenues $ 10,454,343    $ 9,951,630    $ 9,867,208   

Year Ended December 31,
2019 2018 2017
Segment income (loss) (1) (In thousands)
Franchised Dealerships Segment (2) $ 211,267    $ 157,413    $ 138,468   
EchoPark Segment (3) 9,146    (52,587)   (20,950)  
Total segment income (loss) $ 220,413    $ 104,826    $ 117,518   
Impairment charges (4) (20,768)   (29,514)   (9,394)  
Income (loss) from continuing operations before taxes $ 199,645    $ 75,312    $ 108,124   
Retail new and used vehicle unit sales volume:
Franchised Dealerships Segment 226,760    232,885    248,534   
EchoPark Segment 49,520    29,437    10,618   
Total retail new and used vehicle unit sales volume 276,280    262,322    259,152   

(1) Segment income (loss) for each segment is defined as income (loss) from continuing operations before taxes and impairment charges.
(2) For the year ended December 31, 2019, the above amount includes approximately $76.0 million of net gain on the disposal of franchised dealerships, offset partially by approximately $7.2 million of loss on the extinguishment of debt, approximately $6.3 million of executive transition costs and approximately $1.1 million of impairment charges. For the year ended December 31, 2018, the above amount includes approximately $38.9 million of net gain on the disposal of franchised dealerships, offset partially by approximately $27.9 million of impairment charges, approximately $4.0 million of storm-related physical damage costs, approximately $1.7 million of legal costs, approximately $1.6 million of executive transition costs and approximately $1.4 million of lease exit charges. For the year ended December 31, 2017, the above amount includes approximately $14.6 million of net loss on the extinguishment of debt, approximately $8.9 million of storm-related physical damage and legal costs, approximately $7.5 million of impairment charges, approximately $0.7 million of double-carry interest and approximately $0.3 million of lease exit charges, offset partially by approximately $10.0 million of net gain on the disposal of franchised dealerships.
(3) For the year ended December 31, 2019, the above amount includes approximately $19.7 million of impairment charges related to building and land held for sale at former EchoPark locations. For the year ended December 31, 2018, the above amount includes approximately $32.5 million of long-term compensation-related charges and approximately $1.6 million of impairment charges. For the year ended December 31, 2017, the above amount includes approximately $1.9 million of impairment charges, approximately $1.3 million of long-term compensation-related charges, approximately $0.6 million of lease exit charges and approximately $0.2 million of storm-related physical damage and legal costs.
(4) For the year ended December 31, 2019, the above amount includes approximately $1.1 million of impairment charges for the Franchised Dealerships Segment and approximately $19.7 million of impairment charges for the EchoPark Segment. For the year ended December 31, 2018, the above amount includes approximately $27.9 million of impairment charges for the Franchised Dealerships Segment and approximately $1.6 million of impairment charges for the EchoPark Segment. For the year ended December 31, 2017, the above amount includes approximately $7.5 million of impairment charges for the Franchised Dealerships Segment and approximately $1.9 million of impairment charges for the EchoPark Segment.
Year Ended December 31,
2019 2018 2017
(In thousands)
Impairment charges:
Franchised Dealerships Segment $ 1,101    $ 27,932    $ 7,491   
EchoPark Segment 19,667    1,582    1,903   
Total impairment charges $ 20,768    $ 29,514    $ 9,394   

Year Ended December 31,
2019 2018 2017
(In thousands)
Depreciation and amortization:
Franchised Dealerships Segment $ 82,636    $ 85,849    $ 83,741   
EchoPark Segment 10,533    7,774    5,203   
Total depreciation and amortization $ 93,169    $ 93,623    $ 88,944   

Year Ended December 31,
2019 2018 2017
(In thousands)
Floor plan interest expense:
Franchised Dealerships Segment $ 45,055    $ 46,126    $ 35,030   
EchoPark Segment 3,464    2,272    1,365   
Total floor plan interest expense $ 48,519    $ 48,398    $ 36,395   
Year Ended December 31,
2019 2018 2017
(In thousands)
Interest expense, other, net:
Franchised Dealerships Segment $ 51,231    $ 52,396    $ 51,548   
EchoPark Segment 1,722    1,663    976   
Total interest expense, other, net $ 52,953    $ 54,059    $ 52,524   


Year Ended December 31,
2019 2018 2017
(In thousands)
Capital expenditures:
Franchised Dealerships Segment $ 89,332    $ 116,854    $ 195,220   
EchoPark Segment 36,244    46,765    39,025   
Total capital expenditures $ 125,576    $ 163,619    $ 234,245   
 
December 31,
2019 2018
(In thousands)
Assets:
Franchised Dealerships Segment $ 3,797,878    $ 3,485,280   
EchoPark Segment 244,054    305,673   
Corporate and other:
Cash and cash equivalents 29,103    5,854   
Total assets $ 4,071,035    $ 3,796,807   
   
EchoPark Floorplan Exp                 $ 3,464,000 2,272,000 1,365,000
Franchised Dealerships Floorplan Exp                 $ 45,055,000 $ 46,126,000 $ 35,030,000
Segment Retail Units | retail_Units                 276,280 262,322 259,152
EchoPark Retail Units | retail_Units                 49,520 29,437 10,618
Franchised Dealerships Retail Units | retail_Units                 226,760 232,885 248,534
Segment Income                 $ 220,413,000 $ 104,826,000 $ 117,518,000
EchoPark Segment Income                 9,146,000 (52,587,000) (20,950,000)
Franchised Dealerships Segment Income                 211,267,000 157,413,000 138,468,000
Total consolidated revenues 2,748,404,000 $ 2,702,720,000 $ 2,614,081,000 $ 2,389,138,000 2,574,259,000 2,470,849,000 $ 2,505,749,000 $ 2,400,773,000      
Revenues $ 2,748,404,000 $ 2,702,720,000 $ 2,614,081,000 $ 2,389,138,000 $ 2,574,259,000 $ 2,470,849,000 $ 2,505,749,000 $ 2,400,773,000      
EchoPark Segment Revenue                 1,162,018 700,177 254,309
EchoPark F&I Revenue                 113,834 60,709 14,972
EchoPark Fixed Ops Revenue                 28,753 16,327 14,208
EchoPark Wholesale Revenue                 22,927 20,443 9,483
EchoPark Used Vehicle Revenue                 996,504 602,698 215,646
Franchised Dealerships Segment Revenue                 9,292,325 9,251,453 9,612,899
Franchised Dealerships F&I Revenue                 363,117 344,814 348,058
Franchised Dealerships Fixed Ops Revenue                 1,366,550 1,364,559 1,401,802
Franchised Dealerships New Vehicle Revenue                 4,889,171 4,974,097 5,295,051
Franchised Dealerships Used Vehicle Revenue                 2,493,467 2,370,799 2,406,407
Franchised Dealerships Wholesale Revenue                 $ 180,020 $ 197,184 $ 161,581