| Summary of Reportable Operating Segment |
Reportable segment financial information for the three and nine months ended September 30, 2024 and 2023 were as follows:
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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(In millions) |
| Segment Revenues: |
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| Franchised Dealerships Segment revenues: |
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| Retail new vehicles |
$ |
1,539.9 |
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$ |
1,546.7 |
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$ |
4,510.8 |
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$ |
4,550.9 |
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| Fleet new vehicles |
22.2 |
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23.2 |
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68.0 |
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70.4 |
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| Total new vehicles |
1,562.1 |
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1,569.9 |
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4,578.8 |
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4,621.3 |
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| Used vehicles |
701.4 |
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780.7 |
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2,162.8 |
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2,322.8 |
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| Wholesale vehicles |
42.4 |
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51.4 |
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139.1 |
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165.3 |
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| Parts, service and collision repair |
458.9 |
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431.8 |
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1,333.2 |
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1,289.0 |
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| Finance, insurance and other, net |
122.4 |
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126.0 |
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366.3 |
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375.4 |
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| Franchised Dealerships Segment revenues |
$ |
2,887.2 |
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$ |
2,959.8 |
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$ |
8,580.2 |
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$ |
8,773.8 |
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| EchoPark Segment revenues: |
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| Retail new vehicles |
$ |
— |
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$ |
— |
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$ |
— |
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$ |
1.0 |
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| Used vehicles |
470.3 |
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554.8 |
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1,402.0 |
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1,651.3 |
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| Wholesale vehicles |
23.8 |
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26.6 |
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74.4 |
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89.1 |
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| Finance, insurance and other, net |
50.8 |
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45.3 |
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145.2 |
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136.4 |
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| EchoPark Segment revenues |
$ |
544.9 |
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$ |
626.7 |
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$ |
1,621.6 |
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$ |
1,877.8 |
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| Powersports Segment revenues: |
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| Retail new vehicles |
$ |
26.9 |
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$ |
26.8 |
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$ |
64.4 |
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$ |
72.5 |
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| Used vehicles |
9.0 |
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4.9 |
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17.6 |
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17.1 |
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| Wholesale vehicles |
1.1 |
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1.3 |
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2.3 |
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1.9 |
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| Parts, service and collision repair |
20.1 |
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21.6 |
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36.6 |
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38.6 |
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| Finance, insurance and other, net |
2.3 |
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2.4 |
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5.8 |
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5.9 |
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| Powersports Segment revenues |
$ |
59.4 |
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$ |
57.0 |
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$ |
126.7 |
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$ |
136.0 |
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| Total consolidated revenues |
$ |
3,491.5 |
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$ |
3,643.5 |
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$ |
10,328.5 |
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$ |
10,787.6 |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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(In millions) |
| Segment Income (Loss) (1): |
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Franchised Dealerships Segment (2) |
$ |
51.6 |
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$ |
101.5 |
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$ |
168.0 |
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$ |
357.2 |
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EchoPark Segment (3) |
5.2 |
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(16.9) |
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6.1 |
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(116.5) |
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| Powersports Segment |
4.0 |
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6.6 |
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2.3 |
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9.2 |
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| Total segment income |
$ |
60.8 |
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$ |
91.2 |
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$ |
176.4 |
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$ |
249.9 |
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Impairment charges (4) |
— |
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— |
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(2.4) |
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(62.6) |
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| Income before taxes |
$ |
60.8 |
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$ |
91.2 |
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$ |
174.0 |
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$ |
187.3 |
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(1)Segment income (loss) for each segment is defined as income (loss) before taxes and impairment charges.
(2)For the three months ended September 30, 2024, amount includes approximately $1.8 million of pre-tax charges related to excess compensation related to the CDK outage and approximately $1.5 million of pre-tax charges related to storm damage. For the nine months ended September 30, 2024, amount includes approximately $13.0 million of pre-tax charges related to excess compensation related to the CDK outage, approximately $5.1 million of pre-tax charges related to storm damage, approximately $2.2 million of pre-tax charges related to severance and long-term compensation expense, and approximately $1.0 million of pre-tax impairment charges related to property and equipment. For the nine months ended September 30, 2023, amount includes approximately $20.9 million of pre-tax gain related to acquisitions and dispositions and approximately $1.9 million of pre-tax charges related to storm damage.
(3)For the three months ended September 30, 2024, amount includes approximately $2.3 million of pre-tax gain on dispositions of real estate. For the three months ended September 30, 2023, amount includes approximately $0.9 million of pre-tax charges for long-term compensation expense and approximately $3.9 million related to pre-tax lease exit charges. For the nine months ended September 30, 2024, amount includes approximately $3.0 million of pre-tax gain on exit of leased properties, approximately $2.9 million of pre-tax charges for severance and long-term compensation expense, approximately $2.1 million of pre-tax charges related to closed store accrued expenses related to the indefinite suspension of operations at certain EchoPark locations, approximately $1.4 million of pre-tax impairment charges related to property and equipment, approximately $2.9 million of pre-tax gain on acquisitions and dispositions, and approximately $0.4 million of pre-tax charges related to excess compensation related to the CDK outage. For the nine months ended September 30, 2023, amount includes approximately $62.6 million of pre-tax impairment charges related to fixed assets, lease right-of-use assets, and other contractual obligations related to abandoned property, approximately $10.0 million of pre-tax charges related to used vehicle inventory valuation adjustments, approximately $5.1 million of pre-tax charges for long-term compensation expense, approximately $4.3 million of pre-tax lease exit charges and approximately $0.3 million of pre-tax loss related to acquisitions and dispositions.
(4)For the nine months ended September 30, 2024, amount includes approximately $1.4 million of pre-tax property and equipment charges for real estate held for sale in the EchoPark Segment and approximately $1.0 million of pre-tax property and equipment charges for the Franchised Dealerships Segment. For the nine months ended September 30, 2023, amount includes approximately $62.6 million of pre-tax impairment charges related to fixed assets, lease right-of-use assets, and other contractual obligations related to abandoned property for the EchoPark Segment.
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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(In millions) |
| Segment Impairment Charges: |
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| Franchised Dealerships Segment |
$ |
— |
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$ |
— |
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$ |
1.0 |
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$ |
— |
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| EchoPark Segment |
— |
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— |
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1.4 |
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62.6 |
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| Powersports Segment |
— |
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— |
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— |
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— |
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| Total impairment charges |
$ |
— |
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$ |
— |
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$ |
2.4 |
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$ |
62.6 |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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(In millions) |
| Segment Depreciation and Amortization: |
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| Franchised Dealerships Segment |
$ |
31.5 |
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$ |
28.2 |
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$ |
91.6 |
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$ |
82.8 |
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| EchoPark Segment |
5.4 |
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6.1 |
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16.4 |
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20.4 |
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| Powersports Segment |
1.1 |
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0.9 |
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3.1 |
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2.5 |
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| Total depreciation and amortization |
$ |
37.9 |
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$ |
35.2 |
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$ |
111.1 |
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$ |
105.7 |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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(In millions) |
| Segment Floor Plan Interest Expense: |
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| Franchised Dealerships Segment |
$ |
18.7 |
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$ |
12.9 |
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$ |
52.5 |
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$ |
34.7 |
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| EchoPark Segment |
3.7 |
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4.3 |
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11.3 |
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13.6 |
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| Powersports Segment |
0.7 |
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0.2 |
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1.6 |
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0.6 |
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| Total floor plan interest expense |
$ |
23.0 |
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$ |
17.4 |
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$ |
65.4 |
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$ |
48.9 |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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(In millions) |
| Segment Interest Expense, Other, Net: |
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| Franchised Dealerships Segment |
$ |
28.5 |
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$ |
27.9 |
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$ |
84.1 |
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$ |
82.2 |
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| EchoPark Segment |
0.7 |
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0.7 |
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2.0 |
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2.5 |
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| Powersports Segment |
0.6 |
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0.4 |
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1.9 |
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1.5 |
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| Total interest expense, other, net |
$ |
29.8 |
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$ |
29.0 |
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$ |
88.1 |
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$ |
86.2 |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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(In millions) |
| Segment Capital Expenditures: |
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| Franchised Dealerships Segment |
$ |
50.3 |
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$ |
72.1 |
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$ |
141.4 |
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$ |
137.3 |
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| EchoPark Segment |
0.2 |
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5.4 |
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0.8 |
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14.1 |
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| Powersports Segment |
2.8 |
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0.6 |
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3.7 |
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2.2 |
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| Total capital expenditures |
$ |
53.3 |
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$ |
78.1 |
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$ |
145.9 |
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$ |
153.6 |
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September 30, 2024 |
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December 31, 2023 |
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(In millions) |
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| Segment Assets: |
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| Franchised Dealerships Segment |
$ |
4,550.3 |
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$ |
4,110.8 |
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| EchoPark Segment |
567.4 |
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667.9 |
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| Powersports Segment |
222.9 |
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212.0 |
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| Corporate and other: |
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| Cash and cash equivalents |
17.6 |
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28.9 |
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| Floor plan deposit balance |
400.0 |
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345.0 |
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| Total assets |
$ |
5,758.2 |
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$ |
5,364.6 |
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