Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.3.0.814
Segment Information
 9 Months Ended
Sep. 30, 2015
Segment Reporting [Abstract]  
Segment Information

11. Segment Information

 

As of September 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 buy and sell 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, finance 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 September 30,

 

 

Nine Months Ended September 30,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

 

(In thousands)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Franchised Dealerships

 

$

2,472,357

 

 

$

2,355,604

 

 

$

7,094,951

 

 

$

6,845,271

 

EchoPark®

 

 

22,051

 

 

 

-

 

 

 

58,712

 

 

 

-

 

Total consolidated revenues

 

$

2,494,408

 

 

$

2,355,604

 

 

$

7,153,663

 

 

$

6,845,271

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

 

(In thousands)

 

Segment income (loss) (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Franchised Dealerships

 

$

61,104

 

 

$

56,349

 

 

$

145,888

 

 

$

166,040

 

EchoPark®

 

 

(3,545

)

 

 

(3,853

)

 

 

(13,827

)

 

 

(8,838

)

Total segment income

 

 

57,559

 

 

 

52,496

 

 

 

132,061

 

 

 

157,202

 

Interest expense, other, net

 

 

(12,361

)

 

 

(12,893

)

 

 

(38,635

)

 

 

(40,576

)

Other income (expense), net

 

 

-

 

 

 

(1

)

 

 

102

 

 

 

98

 

Income (loss) from continuing operations before taxes

 

$

45,198

 

 

$

39,602

 

 

$

93,528

 

 

$

116,724

 

(1)

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