Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.22.1
Segment Information
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segment Information 9. Segment Information
As of March 31, 2022, Sonic had two operating segments: (1) retail automotive franchises that sell new vehicles and buy and sell used vehicles, sell replacement parts, perform vehicle maintenance, warranty and repair services, and arrange finance and insurance products (the “Franchised Dealerships Segment”); and (2) pre-owned vehicle specialty retail locations that provide guests an opportunity to search our nationwide inventory, purchase a pre-owned vehicle, select finance and insurance products and sell their current vehicle to us (the “EchoPark Segment”). Sonic has determined that its operating segments also represent its reportable segments.
The reportable 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: (1) the Company’s Chief Executive Officer; (2) the Company’s President; and (3) the Company’s Chief Financial Officer.
Reportable segment financial information for the three months ended March 31, 2022 and 2021 were as follows:
Three Months Ended March 31,
2022 2021
(In millions)
Segment Revenues:
Franchised Dealerships Segment revenues:
Retail new vehicles $ 1,345.7  $ 1,134.0 
Fleet new vehicles 148.6  22.3 
Total new vehicles 1,494.3  1,156.3 
Used vehicles 853.7  661.5 
Wholesale vehicles 106.3  56.2 
Parts, service and collision repair 380.5  308.1 
Finance, insurance and other, net 126.5  97.6 
Franchised Dealerships Segment revenues $ 2,961.3  2279.7
EchoPark Segment revenues:
Retail new vehicles $ 5.6  — 
Used vehicles 517.2  441.4
Wholesale vehicles 62.4  18.6 
Finance, insurance and other, net 40.1  47.1 
EchoPark Segment revenues $ 625.3  $ 507.1 
Total consolidated revenues $ 3,586.6  $ 2,786.8 
Three Months Ended March 31,
2022 2021
(In millions)
Segment Income (Loss) (1):
Franchised Dealerships Segment $ 163.8  $ 70.6 
EchoPark Segment (34.9) 2.0 
Income from continuing operations before taxes $ 128.9  $ 72.6 
(1)Segment income (loss) for each segment is defined as income (loss) from continuing operations before taxes and impairment charges.
Three Months Ended March 31,
2022 2021
(In millions)
Depreciation and Amortization:
Franchised Dealerships Segment $ 24.9  $ 20.4 
EchoPark Segment 5.0  3.2 
Total depreciation and amortization $ 29.9  $ 23.6 

Three Months Ended March 31,
2022 2021
(In millions)
Floor Plan Interest Expense:
Franchised Dealerships Segment $ 3.3  $ 4.1 
EchoPark Segment 1.7  1.0 
Total floor plan interest expense $ 5.0  $ 5.1 
Three Months Ended March 31,
2022 2021
(In millions)
Interest Expense, Other, Net:
Franchised Dealerships Segment $ 20.0  $ 10.0 
EchoPark Segment 0.8  0.3 
Total interest expense, other, net $ 20.8  $ 10.3 
Three Months Ended March 31,
2022 2021
(In millions)
Capital Expenditures:
Franchised Dealerships Segment $ 30.2  $ 46.2 
EchoPark Segment 28.6  21.5 
Total capital expenditures $ 58.8  $ 67.7 
March 31, 2022 December 31, 2021
(In millions)
Assets:
Franchised Dealerships Segment $ 3,986.9  $ 3,934.9 
EchoPark Segment 659.1  740.6 
Corporate and other:
Cash and cash equivalents 360.2  299.4 
Other corporate assets —  0.2 
Total assets $ 5,006.2  $ 4,975.1