| Summary of Reportable Operating Segment |
Reportable segment financial information for the three and six months ended June 30, 2024 and 2023 were as follows:
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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(In millions) |
| Segment Revenues: |
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| Franchised Dealerships Segment revenues: |
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| Retail new vehicles |
$ |
1,530.9 |
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$ |
1,583.3 |
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$ |
2,970.8 |
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$ |
3,004.3 |
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| Fleet new vehicles |
26.2 |
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28.3 |
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45.8 |
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47.1 |
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| Total new vehicles |
1,557.1 |
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1,611.6 |
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3,016.6 |
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3,051.4 |
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| Used vehicles |
732.1 |
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774.5 |
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1,461.4 |
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1,542.0 |
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| Wholesale vehicles |
48.4 |
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55.6 |
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96.9 |
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114.0 |
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| Parts, service and collision repair |
434.4 |
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433.4 |
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874.3 |
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857.2 |
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| Finance, insurance and other, net |
124.2 |
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132.2 |
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243.8 |
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249.4 |
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| Franchised Dealerships Segment revenues |
$ |
2,896.2 |
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$ |
3,007.3 |
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$ |
5,693.0 |
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$ |
5,814.0 |
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| EchoPark Segment revenues: |
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| Retail new vehicles |
$ |
— |
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$ |
— |
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$ |
— |
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$ |
1.0 |
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| Used vehicles |
448.9 |
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524.0 |
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931.7 |
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1,096.5 |
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| Wholesale vehicles |
21.9 |
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35.5 |
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50.7 |
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62.5 |
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| Finance, insurance and other, net |
46.5 |
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41.1 |
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94.3 |
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91.1 |
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| EchoPark Segment revenues |
$ |
517.3 |
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$ |
600.6 |
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$ |
1,076.7 |
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$ |
1,251.1 |
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| Powersports Segment revenues: |
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| Retail new vehicles |
$ |
21.7 |
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$ |
24.9 |
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$ |
37.5 |
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$ |
45.7 |
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| Used vehicles |
5.3 |
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7.4 |
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8.7 |
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12.3 |
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| Wholesale vehicles |
0.9 |
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0.4 |
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1.1 |
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0.5 |
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| Parts, service and collision repair |
9.7 |
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10.3 |
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16.5 |
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17.0 |
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| Finance, insurance and other, net |
2.0 |
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2.0 |
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3.5 |
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3.5 |
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| Powersports Segment revenues |
$ |
39.6 |
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$ |
45.0 |
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$ |
67.3 |
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$ |
79.0 |
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| Total consolidated revenues |
$ |
3,453.0 |
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$ |
3,652.9 |
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$ |
6,837.0 |
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$ |
7,144.1 |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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(In millions) |
| Segment Income (Loss) (1): |
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Franchised Dealerships Segment (2) |
$ |
52.7 |
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$ |
145.9 |
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$ |
116.4 |
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$ |
255.8 |
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EchoPark Segment (3) |
3.9 |
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(52.8) |
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0.9 |
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(99.7) |
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| Powersports Segment |
0.5 |
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2.0 |
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(1.7) |
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2.6 |
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| Total segment income |
$ |
57.1 |
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$ |
95.1 |
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$ |
115.6 |
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$ |
158.7 |
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Impairment charges (4) |
(1.4) |
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(62.6) |
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(2.4) |
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(62.6) |
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| Income before taxes |
$ |
55.7 |
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$ |
32.5 |
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$ |
113.2 |
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$ |
96.1 |
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(1)Segment income (loss) for each segment is defined as income (loss) before taxes and impairment charges.
(2)For the three months ended June 30, 2024, amount includes approximately $11.2 million of pre-tax charges related to excess compensation related to the CDK outage and approximately $3.6 million of pre-tax charges related to hail and storm damage. For the three months ended June 30, 2023, amount includes approximately $20.9 million of pre-tax gain related to acquisitions and dispositions and approximately $1.9 million of pre-tax charges related to hail and storm damage. For the six months ended June 30, 2024, amount includes approximately $11.2 million of pre-tax charges related to excess compensation related to the CDK outage, approximately $3.6 million of pre-tax charges related to hail and storm damage, approximately $2.2 million of pre-tax charges related to severance and long-term compensation expense, and approximately $1.0 million of pre-tax impairment charges related to property and equipment. For the six months ended June 30, 2023, amount includes approximately $20.9 million of pre-tax gain related to acquisitions and dispositions and approximately $1.9 million of pre-tax charges related to hail and storm damage.
(3)For the three months ended June 30, 2024, amount includes approximately $3.0 million of pre-tax gain on exit of leased properties, approximately $1.4 million of pre-tax impairment charges related to property and equipment, approximately $0.7 million of pre-tax charges for severance and long-term compensation expense, approximately $0.6 million of pre-tax gain on acquisitions and dispositions, and approximately $0.4 million of pre-tax charges related to excess compensation related to the CDK outage. For the three months ended June 30, 2023, amount includes approximately $62.6 million of pre-tax impairment charges related to fixed assets, lease right-of-use assets, and other contractual obligations related to abandoned property, approximately $10.0 million of pre-tax charges related to used vehicle inventory valuation adjustments, approximately $2.2 million of pre-tax charges for long-term compensation expense, approximately $0.4 million of pre-tax lease exit charges, and approximately $0.2 million of pre-tax loss related to acquisitions and dispositions. For the six months ended June 30, 2024, amount includes approximately $3.0 million of pre-tax gain on exit of leased properties, approximately $2.7 million of pre-tax charges for severance and long-term compensation expense, approximately $2.2 million of pre-tax charges related to closed store accrued expenses related to indefinite suspension of operations at certain EchoPark locations, approximately $1.4 million of pre-tax impairment charges related to property and equipment, approximately $0.6 million of pre-tax gain on acquisitions and dispositions and approximately $0.4 million of pre-tax charges related to excess compensation related to the CDK outage. For the six months ended June 30, 2023, amount includes approximately $62.6 million of pre-tax impairment charges related to fixed assets, lease right-of-use assets, and other contractual obligations related to abandoned property, approximately $10.0 million of pre-tax charges related to used vehicle inventory valuation adjustments, approximately $4.2 million of pre-tax charges for long-term compensation expense, approximately $0.4 million of pre-tax lease exit charges, and approximately $0.2 million of pre-tax loss related to acquisitions and dispositions.
(4)For the three months ended June 30, 2024, amount includes approximately $1.4 million of pre-tax property and equipment charges for real estate held for sale in the EchoPark Segment. For the three months ended June 30, 2023, amount includes approximately $62.6 million of pre-tax impairment charges related to fixed assets, lease right-of-use assets, and other contractual obligations related to abandoned property for the EchoPark Segment. For the six months ended June 30, 2024, amount includes approximately $1.4 million of pre-tax property and equipment charges for real estate held for sale in the EchoPark Segment and approximately $1.0 million of pre-tax property and equipment charges for the Franchised Dealerships Segment. For the six months ended June 30, 2023, amount includes approximately $62.6 million of pre-tax impairment charges related to fixed assets, lease right-of-use assets, and other contractual obligations related to abandoned property for the EchoPark Segment.
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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(In millions) |
| Segment Impairment Charges: |
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| Franchised Dealerships Segment |
$ |
— |
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$ |
— |
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$ |
1.0 |
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$ |
— |
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| EchoPark Segment |
1.4 |
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62.6 |
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1.4 |
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62.6 |
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| Powersports Segment |
— |
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— |
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— |
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— |
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| Total impairment charges |
$ |
1.4 |
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$ |
62.6 |
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$ |
2.4 |
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$ |
62.6 |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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(In millions) |
| Segment Depreciation and Amortization: |
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| Franchised Dealerships Segment |
$ |
30.4 |
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$ |
27.9 |
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$ |
60.2 |
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$ |
54.5 |
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| EchoPark Segment |
5.6 |
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7.4 |
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11.1 |
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14.4 |
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| Powersports Segment |
1.0 |
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0.8 |
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2.0 |
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1.6 |
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| Total depreciation and amortization |
$ |
37.0 |
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$ |
36.1 |
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$ |
73.2 |
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$ |
70.5 |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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(In millions) |
| Segment Floor Plan Interest Expense: |
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| Franchised Dealerships Segment |
$ |
18.0 |
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$ |
11.9 |
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$ |
34.0 |
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$ |
21.8 |
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| EchoPark Segment |
3.8 |
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4.8 |
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7.6 |
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9.3 |
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| Powersports Segment |
0.5 |
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0.3 |
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1.0 |
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0.4 |
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| Total floor plan interest expense |
$ |
22.2 |
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$ |
17.0 |
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$ |
42.5 |
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$ |
31.5 |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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(In millions) |
| Segment Interest Expense, Other, Net: |
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| Franchised Dealerships Segment |
$ |
27.8 |
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$ |
27.5 |
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$ |
55.6 |
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$ |
54.4 |
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| EchoPark Segment |
0.7 |
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0.9 |
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1.3 |
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1.8 |
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| Powersports Segment |
0.8 |
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0.5 |
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1.3 |
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1.1 |
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| Total interest expense, other, net |
$ |
29.3 |
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$ |
28.9 |
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$ |
58.3 |
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$ |
57.3 |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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(In millions) |
| Segment Capital Expenditures: |
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| Franchised Dealerships Segment |
$ |
48.0 |
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$ |
34.4 |
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$ |
91.1 |
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$ |
65.4 |
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| EchoPark Segment |
0.2 |
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2.8 |
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0.6 |
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8.5 |
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| Powersports Segment |
0.6 |
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1.1 |
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0.9 |
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1.6 |
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| Total capital expenditures |
$ |
48.8 |
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$ |
38.3 |
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$ |
92.6 |
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$ |
75.5 |
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June 30, 2024 |
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December 31, 2023 |
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(In millions) |
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| Segment Assets: |
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| Franchised Dealerships Segment |
$ |
4,499.0 |
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$ |
4,110.8 |
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| EchoPark Segment |
603.4 |
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667.9 |
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| Powersports Segment |
234.6 |
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212.0 |
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| Corporate and other: |
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| Cash and cash equivalents |
67.2 |
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28.9 |
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| Floor plan deposit balance |
400.0 |
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345.0 |
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| Total assets |
$ |
5,804.2 |
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$ |
5,364.6 |
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