Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.22.2.2
Segment Information
6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Segment Information 9. Segment Information
As of June 30, 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 Sonics 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 and six months ended June 30, 2022 and 2021 were as follows (as restated, see Note 1, “Summary of Significant Accounting Policies”:
Three Months Ended June 30, Six Months Ended June 30,
2022 2021 2022 2021
(In millions)
As Restated As Restated
Revenues:
Franchised Dealerships Segment revenues:
Retail new vehicles $ 1,341.7  $ 1,452.3  $ 2,687.4  $ 2,586.3 
Fleet new vehicles 19.9  9.7  38.0  32.0 
Total new vehicles $ 1,361.6  $ 1,462.0  $ 2,725.4  $ 2,618.3 
Used vehicles 871.9  761.5  1,725.7  1,423.1 
Wholesale vehicles 79.2  63.0  185.5  119.1 
Parts, service and collision repair 398.1  346.1  778.7  654.2 
Finance, insurance and other, net 129.8  124.0  256.2  221.6 
Franchised Dealerships Segment revenues $ 2,840.6  $ 2,756.6  $ 5,671.5  $ 5,036.3 
EchoPark Segment revenues:
Retail new vehicles $ 2.5  $ 0.9  $ 8.2  $ 0.9 
Used vehicles 577.5  519.7 1,094.5  961.0 
Wholesale vehicles 42.2  21.8  104.7  40.5 
Finance, insurance and other, net 43.4  53.2  83.5  100.3 
EchoPark Segment revenues $ 665.6  $ 595.6  $ 1,290.9  $ 1,102.7 
Total consolidated revenues $ 3,506.2  $ 3,352.2  $ 6,962.4  $ 6,139.0 

Three Months Ended June 30, Six Months Ended June 30,
2022 2021 2022 2021
(In millions)
Income (Loss) (1):
Franchised Dealerships Segment $ 162.1  $ 165.4  $ 326.0  $ 236.0 
EchoPark Segment (34.9) (14.4) (69.9) (12.4)
Income from continuing operations before taxes $ 127.2  $ 151.0  $ 256.1  $ 223.6 
(1)Segment income (loss) for each segment is defined as income (loss) from continuing operations before taxes and impairment charges.
Three Months Ended June 30, Six Months Ended June 30,
2022 2021 2022 2021
(In millions)
Depreciation and Amortization:
Franchised Dealerships Segment $ 25.3  $ 20.6  $ 50.1  $ 41.0 
EchoPark Segment 5.9  4.2  11.0  7.4 
Total depreciation and amortization $ 31.2  $ 24.8  $ 61.1  $ 48.4 

Three Months Ended June 30, Six Months Ended June 30,
2022 2021 2022 2021
(In millions)
Floor Plan Interest Expense:
Franchised Dealerships Segment $ 3.9  $ 3.2  $ 7.2  $ 7.3 
EchoPark Segment 2.2  1.1  3.9  2.1 
Total floor plan interest expense $ 6.1  $ 4.3  $ 11.1  $ 9.4 
Three Months Ended June 30, Six Months Ended June 30,
2022 2021 2022 2021
(In millions)
Interest Expense, Other, Net:
Franchised Dealerships Segment $ 20.2  $ 9.7  $ 40.3  $ 19.7 
EchoPark Segment 1.1  0.4  1.8  0.7 
Total interest expense, other, net $ 21.3  $ 10.1  $ 42.1  $ 20.4 
Three Months Ended June 30, Six Months Ended June 30,
2022 2021 2022 2021
(In millions)
Capital Expenditures:
Franchised Dealerships Segment $ 21.9  $ 25.5  $ 52.0  $ 71.7 
EchoPark Segment 19.7  11.9  48.4  33.4 
Total capital expenditures $ 41.6  $ 37.4  $ 100.4  $ 105.1 
June 30, 2022 December 31, 2021
(In millions)
Assets:
Franchised Dealerships Segment $ 4,031.9  $ 3,934.9 
EchoPark Segment 664.5  740.6 
Corporate and other:
Cash and cash equivalents 327.1  299.4 
Other corporate assets —  0.2 
Total assets $ 5,023.5  $ 4,975.1