Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.7.0.1
Segment Information
6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Segment Information

11. Segment Information

 

As of June 30, 2017, Sonic had two operating segments: Franchised Dealerships and EchoPark. The Franchised Dealerships segment is comprised of retail automotive franchises that sell new vehicles and buy and sell used vehicles, sell replacement parts, perform vehicle repair and maintenance services, and arrange finance and insurance products. The EchoPark segment is comprised of stand-alone 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 of three individuals consisting of the Company’s Chief Executive Officer and President, Executive Vice President and Chief Financial Officer, and Executive Vice President of Operations. The Company has determined that its operating segments also represent its reportable segments.

 

Reportable segment revenues and segment income (loss) for the three and six months ended June 30, 2017 and 2016 are as follows:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

 

(In thousands)

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Franchised Dealerships

 

$

2,356,692

 

 

$

2,352,840

 

 

$

4,602,717

 

 

$

4,563,425

 

 

EchoPark

 

 

49,054

 

 

 

29,472

 

 

 

90,851

 

 

 

53,514

 

 

Total consolidated revenues

 

$

2,405,746

 

 

$

2,382,312

 

 

$

4,693,568

 

 

$

4,616,939

 

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

 

(In thousands)

 

 

Segment income (loss) (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Franchised Dealerships

 

$

40,544

 

 

$

53,561

 

 

$

74,013

 

 

$

92,854

 

 

EchoPark

 

 

(7,517

)

 

 

(3,206

)

 

 

(12,924

)

 

 

(6,630

)

 

Total segment income (loss)

 

 

33,027

 

 

 

50,355

 

 

 

61,089

 

 

 

86,224

 

 

Interest expense, other, net

 

 

(12,764

)

 

 

(12,205

)

 

 

(26,172

)

 

 

(24,544

)

 

Other income (expense), net

 

 

7

 

 

 

6

 

 

 

(14,495

)

 

 

110

 

 

Income (loss) from continuing operations before taxes

 

$

20,270

 

 

$

38,156

 

 

$

20,422

 

 

$

61,790

 

 

 

(1)

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