Quarterly report pursuant to Section 13 or 15(d)

Business Acquisitions and Dispositions

v3.5.0.2
Business Acquisitions and Dispositions
 9 Months Ended
Sep. 30, 2016
Business Combinations [Abstract]  
Business Acquisitions and Dispositions

2. Business Acquisitions and Dispositions

Acquisitions – During the three and nine months ended September 30, 2016, Sonic acquired three stand-alone used vehicle dealership businesses and real estate for approximately $15.9 million. On a pro forma basis as if the results of these acquisitions had been included in Sonic’s consolidated results for the entire three and nine months ended September 30, 2016 and 2015, revenue and net income would not have been materially different from Sonic’s reported revenue and net income for these periods. Sonic did not acquire any franchises during the nine months ended September 30, 2015.

Dispositions – Revenues and other activities associated with dealerships classified as discontinued operations were as follows:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

 

(In thousands)

 

 

Income (loss) from operations

 

$

(350

)

 

$

(383

)

 

$

(539

)

 

$

(1,029

)

 

Lease exit accrual adjustments and charges

 

 

(1,063

)

 

 

(616

)

 

 

(974

)

 

 

(1,171

)

 

Pre-tax income (loss)

 

$

(1,413

)

 

$

(999

)

 

$

(1,513

)

 

$

(2,200

)

 

Total revenues

 

$

-

 

 

$

-

 

 

$

-

 

 

$

42

 

 

 

Sonic did not dispose of any franchises during the nine months ended September 30, 2016. Sonic disposed of one franchise during the nine months ended September 30, 2015 that generated net cash of approximately $1.3 million. Revenues and other activities associated with disposed dealerships that remain in continuing operations were as follows:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

 

(In thousands)

 

 

Income (loss) from operations

 

$

(41

)

 

$

(1,145

)

 

$

(313

)

 

$

(3,701

)

 

Gain (loss) on disposal

 

 

29

 

 

 

(542

)

 

 

(30

)

 

 

414

 

 

Property and equipment impairment charges

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(10,096

)

 

Pre-tax income (loss)

 

$

(12

)

 

$

(1,687

)

 

$

(343

)

 

$

(13,383

)

 

Total revenues

 

$

11

 

 

$

25,707

 

 

$

10

 

 

$

83,275