(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Page | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 6. | ||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(Dollars and shares in millions, except per share amounts) | |||||||||||
Revenues: | |||||||||||
Retail new vehicles | $ | $ | |||||||||
Fleet new vehicles | |||||||||||
Total new vehicles | |||||||||||
Used vehicles | |||||||||||
Wholesale vehicles | |||||||||||
Total vehicles | |||||||||||
Parts, service and collision repair | |||||||||||
Finance, insurance and other, net | |||||||||||
Total revenues | |||||||||||
Cost of sales: | |||||||||||
Retail new vehicles | ( | ( | |||||||||
Fleet new vehicles | ( | ( | |||||||||
Total new vehicles | ( | ( | |||||||||
Used vehicles | ( | ( | |||||||||
Wholesale vehicles | ( | ( | |||||||||
Total vehicles | ( | ( | |||||||||
Parts, service and collision repair | ( | ( | |||||||||
Total cost of sales | ( | ( | |||||||||
Gross profit | |||||||||||
Selling, general and administrative expenses | ( | ( | |||||||||
Depreciation and amortization | ( | ( | |||||||||
Operating income | |||||||||||
Other income (expense): | |||||||||||
Interest expense, floor plan | ( | ( | |||||||||
Interest expense, other, net | ( | ( | |||||||||
Other income (expense), net | |||||||||||
Total other income (expense) | ( | ( | |||||||||
Income from continuing operations before taxes | |||||||||||
Provision for income taxes for continuing operations - benefit (expense) | ( | ( | |||||||||
Income from continuing operations | |||||||||||
Discontinued operations: | |||||||||||
Income (loss) from discontinued operations before taxes | |||||||||||
Provision for income taxes for discontinued operations - benefit (expense) | ( | ||||||||||
Income (loss) from discontinued operations | |||||||||||
Net income | $ | $ | |||||||||
Basic earnings per common share: | |||||||||||
Earnings per share from continuing operations | $ | $ | |||||||||
Earnings per share from discontinued operations | |||||||||||
Earnings per common share | $ | $ | |||||||||
Weighted-average common shares outstanding | |||||||||||
Diluted earnings per common share: | |||||||||||
Earnings per share from continuing operations | $ | $ | |||||||||
Earnings per share from discontinued operations | |||||||||||
Earnings per common share | $ | $ | |||||||||
Weighted-average common shares outstanding |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(Dollars in millions) | |||||||||||
Net income | $ | $ | |||||||||
Other comprehensive income (loss) before taxes: | |||||||||||
Change in fair value and amortization of interest rate cap agreements | |||||||||||
Total other comprehensive income (loss) before taxes | |||||||||||
Provision for income tax benefit (expense) related to components of other comprehensive income (loss) | ( | ( | |||||||||
Other comprehensive income (loss) | |||||||||||
Comprehensive income | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
(Dollars in millions) | |||||||||||
ASSETS | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Receivables, net | |||||||||||
Inventories | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property and Equipment, net | |||||||||||
Goodwill | |||||||||||
Other Intangible Assets, net | |||||||||||
Operating Right-of-Use Lease Assets | |||||||||||
Finance Right-of-Use Lease Assets | |||||||||||
Other Assets | |||||||||||
Total Assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current Liabilities: | |||||||||||
Notes payable - floor plan - trade | $ | $ | |||||||||
Notes payable - floor plan - non-trade | |||||||||||
Trade accounts payable | |||||||||||
Operating short-term lease liabilities | |||||||||||
Finance short-term lease liabilities | |||||||||||
Other accrued liabilities | |||||||||||
Current maturities of long-term debt | |||||||||||
Total current liabilities | |||||||||||
Long-Term Debt | |||||||||||
Other Long-Term Liabilities | |||||||||||
Operating Long-Term Lease Liabilities | |||||||||||
Finance Long-Term Lease Liabilities | |||||||||||
Commitments and Contingencies | |||||||||||
Stockholders’ Equity: | |||||||||||
Class A Convertible Preferred Stock, | |||||||||||
Class A Common Stock, $ | |||||||||||
Class B Common Stock, $ | |||||||||||
Paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive income (loss) | ( | ( | |||||||||
Treasury stock, at cost; | ( | ( | |||||||||
Total Stockholders’ Equity | |||||||||||
Total Liabilities and Stockholders’ Equity | $ | $ |
Class A Common Stock | Class A Treasury Stock | Class B Common Stock | Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars and shares in millions, except per share amounts) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | ( | $ | ( | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares awarded under stock compensation plans | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock | — | — | ( | ( | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Effect of cash flow hedge instruments, net of tax expense of $0.2 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock amortization and stock option amortization | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class A dividends declared ($ | — | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Class B dividends declared ($ | — | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | ( | $ | ( | $ | $ | $ | $ | ( | $ |
Class A Common Stock | Class A Treasury Stock | Class B Common Stock | Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars and shares in millions, except per share amounts) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | ( | $ | ( | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares awarded under stock compensation plans | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock | — | — | ( | ( | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Effect of cash flow hedge instruments, net of tax expense of $0.1 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock amortization | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class A dividends declared ($ | — | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Class B dividends declared ($ | — | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | ( | $ | ( | $ | $ | $ | $ | ( | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(Dollars in millions) | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization of property and equipment | |||||||||||
Debt issuance cost amortization | |||||||||||
Stock-based compensation expense | |||||||||||
Deferred income taxes | ( | ( | |||||||||
Other | ( | ||||||||||
Changes in assets and liabilities that relate to operations: | |||||||||||
Receivables | ( | ||||||||||
Inventories | |||||||||||
Other assets | ( | ||||||||||
Notes payable - floor plan – trade | ( | ( | |||||||||
Trade accounts payable and other liabilities | |||||||||||
Total adjustments | |||||||||||
Net cash provided by operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchases of businesses, net of cash acquired | ( | ( | |||||||||
Purchases of land, property and equipment | ( | ( | |||||||||
Proceeds from sales of property and equipment | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Net repayments on notes payable - floor plan - non-trade | ( | ( | |||||||||
Borrowings on revolving credit facilities | |||||||||||
Repayments on revolving credit facilities | ( | ||||||||||
Debt issuance costs | ( | ||||||||||
Principal payments of long-term debt | ( | ( | |||||||||
Principal payments of long-term lease liabilities | ( | ( | |||||||||
Purchases of treasury stock | ( | ( | |||||||||
Issuance of shares under stock compensation plans | |||||||||||
Dividends paid | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | ( | ||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | |||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | $ | |||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||||||
Cash paid (received) during the period for: | |||||||||||
Interest, including amount capitalized | $ | $ | |||||||||
Income taxes | $ | $ | ( |
March 31, 2022 | December 31, 2021 | ||||||||||
(In millions) | |||||||||||
New vehicles | $ | $ | |||||||||
Used vehicles | |||||||||||
Service loaners | |||||||||||
Parts, accessories and other | |||||||||||
Net inventories | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
(In millions) | |||||||||||
Land | $ | $ | |||||||||
Buildings and improvements | |||||||||||
Furniture, fixtures and equipment | |||||||||||
Construction in progress | |||||||||||
Total, at cost | |||||||||||
Less accumulated depreciation | ( | ( | |||||||||
Subtotal | |||||||||||
Less assets held for sale (1) | ( | ||||||||||
Property and equipment, net | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
(In millions) | |||||||||||
Carrying Amount of Goodwill: | |||||||||||
Franchised Dealerships Segment | $ | ||||||||||
EchoPark Segment | |||||||||||
Total goodwill (1) | $ | $ | |||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
(In millions) | |||||||||||
2021 Revolving Credit Facility (1) | $ | $ | |||||||||
4.625% Senior Notes due 2029 (the “4.625% Notes”) | |||||||||||
4.875% Senior Notes due 2031 (the “4.875% Notes”) | |||||||||||
2019 Mortgage Facility (2) | |||||||||||
Mortgage notes to finance companies - fixed rate, bearing interest from 2.05% to 7.03% | |||||||||||
Mortgage notes to finance companies - variable rate, bearing interest at 1.50 to 2.90 percentage points above one-month or three-month LIBOR | |||||||||||
Subtotal | $ | $ | |||||||||
Debt issuance costs | ( | ( | |||||||||
Total debt | |||||||||||
Less current maturities | ( | ( | |||||||||
Long-term debt | $ | $ |
Covenant | |||||||||||||||||
Minimum Consolidated Liquidity Ratio | Minimum Consolidated Fixed Charge Coverage Ratio | Maximum Consolidated Total Lease Adjusted Leverage Ratio | |||||||||||||||
Required ratio | |||||||||||||||||
March 31, 2022 actual |
Fair Value Based on Significant Other Observable Inputs (Level 2) | |||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
(In millions) | |||||||||||
Assets: | |||||||||||
Cash surrender value of life insurance policies (1) | $ | $ | |||||||||
Total assets | $ | $ | |||||||||
Liabilities: | |||||||||||
Deferred compensation plan (2) | $ | $ | |||||||||
Total liabilities | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
4.875% Notes (1) | $ | $ | $ | $ | |||||||||||||||||||
4.625% Notes (1) | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(In millions) | |||||||||||
Segment Revenues: | |||||||||||
Franchised Dealerships Segment revenues: | |||||||||||
Retail new vehicles | $ | $ | |||||||||
Fleet new vehicles | |||||||||||
Total new vehicles | |||||||||||
Used vehicles | |||||||||||
Wholesale vehicles | |||||||||||
Parts, service and collision repair | |||||||||||
Finance, insurance and other, net | |||||||||||
Franchised Dealerships Segment revenues | $ | ||||||||||
EchoPark Segment revenues: | |||||||||||
Retail new vehicles | $ | ||||||||||
Used vehicles | |||||||||||
Wholesale vehicles | |||||||||||
Finance, insurance and other, net | |||||||||||
EchoPark Segment revenues | $ | $ | |||||||||
Total consolidated revenues | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(In millions) | |||||||||||
Segment Income (Loss) (1): | |||||||||||
Franchised Dealerships Segment | $ | $ | |||||||||
EchoPark Segment | ( | ||||||||||
Income from continuing operations before taxes | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(In millions) | |||||||||||
Depreciation and Amortization: | |||||||||||
Franchised Dealerships Segment | $ | $ | |||||||||
EchoPark Segment | |||||||||||
Total depreciation and amortization | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(In millions) | |||||||||||
Floor Plan Interest Expense: | |||||||||||
Franchised Dealerships Segment | $ | $ | |||||||||
EchoPark Segment | |||||||||||
Total floor plan interest expense | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(In millions) | |||||||||||
Interest Expense, Other, Net: | |||||||||||
Franchised Dealerships Segment | $ | $ | |||||||||
EchoPark Segment | |||||||||||
Total interest expense, other, net | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(In millions) | |||||||||||
Capital Expenditures: | |||||||||||
Franchised Dealerships Segment | $ | $ | |||||||||
EchoPark Segment | |||||||||||
Total capital expenditures | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
(In millions) | |||||||||||
Assets: | |||||||||||
Franchised Dealerships Segment | $ | $ | |||||||||
EchoPark Segment | |||||||||||
Corporate and other: | |||||||||||
Cash and cash equivalents | |||||||||||
Other corporate assets | |||||||||||
Total assets | $ | $ |
Three Months Ended March 31, | |||||||||||
Brand | 2022 | 2021 | |||||||||
Luxury: | |||||||||||
BMW | 22.8 | % | 23.8 | % | |||||||
Mercedes | 10.3 | % | 12.8 | % | |||||||
Audi | 4.6 | % | 7.2 | % | |||||||
Lexus | 4.4 | % | 5.1 | % | |||||||
Land Rover | 3.0 | % | 4.5 | % | |||||||
Porsche | 2.5 | % | 3.7 | % | |||||||
Cadillac | 1.9 | % | 3.0 | % | |||||||
Volvo | 0.9 | % | — | % | |||||||
MINI | 0.8 | % | 0.9 | % | |||||||
Other luxury (1) | 0.4 | % | 2.5 | % | |||||||
Total Luxury | 51.6 | % | 63.5 | % | |||||||
Mid-line Import: | |||||||||||
Honda | 8.6 | % | 13.1 | % | |||||||
Toyota | 8.4 | % | 9.1 | % | |||||||
Volkswagen | 1.5 | % | 1.2 | % | |||||||
Hyundai | 1.3 | % | 1.0 | % | |||||||
Other Import (2) | 1.6 | % | 0.4 | % | |||||||
Total Mid-line Import | 21.4 | % | 24.8 | % | |||||||
Domestic: | |||||||||||
Ford | 13.3 | % | 5.9 | % | |||||||
Chrysler, Dodge, Jeep, and Ram | 10.3 | % | — | % | |||||||
General Motors (3) | 3.4 | % | 5.8 | % | |||||||
Total Domestic | 27.0 | % | 11.7 | % | |||||||
Total | 100.0 | % | 100.0 | % |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||
2022 | 2021 | % Change | |||||||||||||||
(In millions of vehicles) | |||||||||||||||||
Retail new vehicle SAAR (1) | 12.7 | 14.3 | (11.2) | % | |||||||||||||
Fleet new vehicle SAAR | 1.5 | 2.6 | (42.3) | % | |||||||||||||
Total new vehicle SAAR (2) | 14.2 | 16.9 | (16.0) | % |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions, except unit and per unit data) | |||||||||||||||||||||||
Reported new vehicle: | |||||||||||||||||||||||
Retail new vehicle revenue | $ | 1,351.3 | $ | 1,134.0 | $ | 217.3 | 19.2 | % | |||||||||||||||
Fleet new vehicle revenue | 148.6 | 22.3 | 126.3 | 566.4 | % | ||||||||||||||||||
Total new vehicle revenue | $ | 1,499.9 | $ | 1,156.3 | $ | 343.6 | 29.7 | % | |||||||||||||||
Retail new vehicle gross profit | $ | 167.7 | $ | 69.2 | $ | 98.5 | 142.3 | % | |||||||||||||||
Fleet new vehicle gross profit | 0.8 | 0.2 | 0.6 | 300.0 | % | ||||||||||||||||||
Total new vehicle gross profit | $ | 168.5 | $ | 69.4 | $ | 99.1 | 142.8 | % | |||||||||||||||
Retail new vehicle unit sales | 24,687 | 23,817 | 870 | 3.7 | % | ||||||||||||||||||
Fleet new vehicle unit sales | 4,381 | 541 | 3,840 | 709.8 | % | ||||||||||||||||||
Total new unit sales | 29,068 | 24,358 | 4,710 | 19.3 | % | ||||||||||||||||||
Revenue per retail unit | $ | 54,737 | $ | 47,613 | $ | 7,124 | 15.0 | % | |||||||||||||||
Revenue per fleet unit | 33,919 | 41,220 | (7,301) | (17.7) | % | ||||||||||||||||||
Total revenue per unit | $ | 51,600 | $ | 47,472 | $ | 4,128 | 8.7 | % | |||||||||||||||
Gross profit per retail unit | $ | 6,793 | $ | 2,906 | $ | 3,887 | 133.8 | % | |||||||||||||||
Gross profit per fleet unit | 193 | 459 | (266) | (58.0) | % | ||||||||||||||||||
Total gross profit per unit | $ | 5,798 | $ | 2,852 | $ | 2,946 | 103.3 | % | |||||||||||||||
Retail gross profit as a % of revenue | 12.4 | % | 6.1 | % | 630 | bps | |||||||||||||||||
Fleet gross profit as a % of revenue | 0.5 | % | 0.9 | % | (40) | bps | |||||||||||||||||
Total gross profit as a % of revenue | 11.2 | % | 6.0 | % | 520 | bps |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions, except unit and per unit data) | |||||||||||||||||||||||
Reported used vehicle: | |||||||||||||||||||||||
Revenue | $ | 1,370.9 | $ | 1,090.1 | $ | 280.8 | 25.8 | % | |||||||||||||||
Gross profit | $ | 48.2 | $ | 30.9 | $ | 17.3 | 56.0 | % | |||||||||||||||
Unit sales | 42,073 | 46,906 | (4,833) | (10.3) | % | ||||||||||||||||||
Revenue per unit | $ | 32,584 | $ | 23,240 | $ | 9,344 | 40.2 | % | |||||||||||||||
Gross profit per unit | $ | 1,144 | $ | 658 | $ | 486 | 73.9 | % | |||||||||||||||
Gross profit as a % of revenue | 3.5 | % | 2.8 | % | 70 | bps |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions, except unit and per unit data) | |||||||||||||||||||||||
Reported wholesale vehicle: | |||||||||||||||||||||||
Revenue | $ | 168.7 | $ | 74.8 | $ | 93.9 | 125.5 | % | |||||||||||||||
Gross profit (loss) | $ | 1.4 | $ | 0.9 | $ | 0.5 | 55.6 | % | |||||||||||||||
Unit sales | 10,421 | 9,693 | 728 | 7.5 | % | ||||||||||||||||||
Revenue per unit | $ | 16,188 | $ | 7,718 | $ | 8,470 | 109.7 | % | |||||||||||||||
Gross profit (loss) per unit | $ | 147 | $ | 88 | $ | 59 | 67.0 | % | |||||||||||||||
Gross profit (loss) as a % of revenue | 0.8 | % | 1.1 | % | (30) | bps |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Reported Fixed Operations: | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Customer pay | $ | 159.7 | $ | 133.6 | $ | 26.1 | 19.5 | % | |||||||||||||||
Warranty | 53.0 | 53.1 | (0.1) | (0.2) | % | ||||||||||||||||||
Wholesale parts | 49.8 | 34.7 | 15.1 | 43.5 | % | ||||||||||||||||||
Internal, sublet and other | 118.0 | 99.5 | 18.5 | 18.6 | % | ||||||||||||||||||
Total revenue | $ | 380.5 | $ | 320.9 | $ | 59.6 | 18.6 | % | |||||||||||||||
Gross profit | |||||||||||||||||||||||
Customer pay | $ | 91.4 | $ | 76.0 | $ | 15.4 | 20.3 | % | |||||||||||||||
Warranty | 31.6 | 30.9 | 0.7 | 2.3 | % | ||||||||||||||||||
Wholesale parts | 8.9 | 6.1 | 2.8 | 45.9 | % | ||||||||||||||||||
Internal, sublet and other | 54.7 | 42.0 | 12.7 | 30.2 | % | ||||||||||||||||||
Total gross profit | $ | 186.6 | $ | 155.0 | $ | 31.6 | 20.4 | % | |||||||||||||||
Gross profit as a % of revenue | |||||||||||||||||||||||
Customer pay | 57.3 | % | 56.9 | % | 40 | bps | |||||||||||||||||
Warranty | 59.5 | % | 58.2 | % | 130 | bps | |||||||||||||||||
Wholesale parts | 17.9 | % | 17.6 | % | 30 | bps | |||||||||||||||||
Internal, sublet and other | 46.4 | % | 42.2 | % | 420 | bps | |||||||||||||||||
Total gross profit as a % of revenue | 49.0 | % | 48.3 | % | 70 | bps |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions, except unit and per unit data) | |||||||||||||||||||||||
Reported F&I: | |||||||||||||||||||||||
Revenue | $ | 166.6 | $ | 144.7 | $ | 21.9 | 15.1 | % | |||||||||||||||
Unit sales | 66,760 | 70,723 | (3,963) | (5.6) | % | ||||||||||||||||||
Gross profit per retail unit (excludes fleet) | $ | 2,495 | $ | 2,045 | $ | 450 | 22.0 | % |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions, except unit data) | |||||||||||||||||||||||
Retail new vehicle revenue: | |||||||||||||||||||||||
Same store | $ | 1,109.7 | $ | 1,130.7 | $ | (21.0) | (1.9) | % | |||||||||||||||
Acquisitions, open points, dispositions and holding company | 236.0 | 3.3 | 232.7 | NM | |||||||||||||||||||
Total as reported | $ | 1,345.7 | $ | 1,134.0 | $ | 211.7 | 18.7 | % | |||||||||||||||
Fleet new vehicle revenue: | |||||||||||||||||||||||
Same store | $ | 13.6 | $ | 22.3 | $ | (8.7) | (39.0) | % | |||||||||||||||
Acquisitions, open points, dispositions and holding company | 135.0 | — | 135.0 | NM | |||||||||||||||||||
Total as reported | $ | 148.6 | $ | 22.3 | $ | 126.3 | 566.4 | % | |||||||||||||||
Total new vehicle revenue: | |||||||||||||||||||||||
Same store | $ | 1,123.3 | $ | 1,153.0 | $ | (29.7) | (2.6) | % | |||||||||||||||
Acquisitions, open points, dispositions and holding company | 371.0 | 3.3 | 367.7 | NM | |||||||||||||||||||
Total as reported | $ | 1,494.3 | $ | 1,156.3 | $ | 338.0 | 29.2 | % | |||||||||||||||
NM = Not Meaningful |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions, except unit data) | |||||||||||||||||||||||
Retail new vehicle gross profit: | |||||||||||||||||||||||
Same store | $ | 137.9 | $ | 68.8 | $ | 69.1 | 100.4 | % | |||||||||||||||
Acquisitions, open points, dispositions and holding company | 28.7 | 0.4 | 28.3 | NM | |||||||||||||||||||
Total as reported | $ | 166.6 | $ | 69.2 | $ | 97.4 | 140.8 | % | |||||||||||||||
Fleet new vehicle gross profit: | |||||||||||||||||||||||
Same store | $ | 0.7 | $ | 0.3 | $ | 0.4 | 133.3 | % | |||||||||||||||
Acquisitions, open points, dispositions and holding company | 0.1 | — | 0.1 | NM | |||||||||||||||||||
Total as reported | $ | 0.8 | $ | 0.3 | $ | 0.5 | 166.7 | % | |||||||||||||||
Total new vehicle gross profit: | |||||||||||||||||||||||
Same store | $ | 138.6 | $ | 69.1 | $ | 69.5 | 100.6 | % | |||||||||||||||
Acquisitions, open points, dispositions and holding company | 28.8 | 0.4 | 28.4 | NM | |||||||||||||||||||
Total as reported | $ | 167.4 | $ | 69.5 | $ | 97.9 | 140.9 | % | |||||||||||||||
Retail new vehicle unit sales: | |||||||||||||||||||||||
Same store | 20,283 | 23,736 | (3,453) | (14.5) | % | ||||||||||||||||||
Acquisitions, open points, dispositions and holding company | 4,319 | 81 | 4,238 | NM | |||||||||||||||||||
Total as reported | 24,602 | 23,817 | 785 | 3.3 | % | ||||||||||||||||||
Fleet new vehicle unit sales: | |||||||||||||||||||||||
Same store | 277 | 541 | (264) | (48.8) | % | ||||||||||||||||||
Acquisitions, open points, dispositions and holding company | 4,104 | — | 4,104 | NM | |||||||||||||||||||
Total as reported | 4,381 | 541 | 3,840 | 709.8 | % | ||||||||||||||||||
Total new vehicle unit sales: | |||||||||||||||||||||||
Same store | 20,560 | 24,277 | (3,717) | (15.3) | % | ||||||||||||||||||
Acquisitions, open points, dispositions and holding company | 8,423 | 81 | 8,342 | NM | |||||||||||||||||||
Total as reported | 28,983 | 24,358 | 4,625 | 19.0 | % | ||||||||||||||||||
NM = Not Meaningful |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions, except unit and per unit data) | |||||||||||||||||||||||
Reported new vehicle: | |||||||||||||||||||||||
Retail new vehicle revenue | $ | 1,345.7 | $ | 1,134.0 | $ | 211.7 | 18.7 | % | |||||||||||||||
Fleet new vehicle revenue | 148.6 | 22.3 | 126.3 | 566.4 | % | ||||||||||||||||||
Total new vehicle revenue | $ | 1,494.3 | $ | 1,156.3 | $ | 338.0 | 29.2 | % | |||||||||||||||
Retail new vehicle gross profit | $ | 166.6 | $ | 69.2 | $ | 97.4 | 140.8 | % | |||||||||||||||
Fleet new vehicle gross profit | 0.8 | 0.3 | 0.5 | 166.7 | % | ||||||||||||||||||
Total new vehicle gross profit | $ | 167.4 | $ | 69.5 | $ | 97.9 | 140.9 | % | |||||||||||||||
Retail new vehicle unit sales | 24,602 | 23,817 | 785 | 3.3 | % | ||||||||||||||||||
Fleet new vehicle unit sales | 4,381 | 541 | 3,840 | 709.8 | % | ||||||||||||||||||
Total new unit sales | 28,983 | 24,358 | 4,625 | 19.0 | % | ||||||||||||||||||
Revenue per retail unit | $ | 54,699 | $ | 47,613 | $ | 7,086 | 14.9 | % | |||||||||||||||
Revenue per fleet unit | 33,919 | 41,220 | (7,301) | (17.7) | % | ||||||||||||||||||
Total revenue per unit | $ | 51,558 | $ | 47,472 | $ | 4,086 | 8.6 | % | |||||||||||||||
Gross profit per retail unit | $ | 6,771 | $ | 2,906 | $ | 3,865 | 133.0 | % | |||||||||||||||
Gross profit per fleet unit | 193 | 459 | (266) | (58.0) | % | ||||||||||||||||||
Total gross profit per unit | $ | 5,777 | $ | 2,852 | $ | 2,925 | 102.6 | % | |||||||||||||||
Retail gross profit as a % of revenue | 12.4 | % | 6.1 | % | 630 | bps | |||||||||||||||||
Fleet gross profit as a % of revenue | 0.5 | % | 1.3 | % | (80) | bps | |||||||||||||||||
Total gross profit as a % of revenue | 11.2 | % | 6.0 | % | 520 | bps |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions, except unit and per unit data) | |||||||||||||||||||||||
Same store new vehicle: | |||||||||||||||||||||||
Retail new vehicle revenue | $ | 1,109.7 | $ | 1,130.7 | $ | (21.0) | (1.9) | % | |||||||||||||||
Fleet new vehicle revenue | 13.6 | 22.3 | (8.7) | (39.0) | % | ||||||||||||||||||
Total new vehicle revenue | $ | 1,123.3 | $ | 1,153.0 | $ | (29.7) | (2.6) | % | |||||||||||||||
Retail new vehicle gross profit | $ | 137.9 | $ | 68.8 | $ | 69.1 | 100.4 | % | |||||||||||||||
Fleet new vehicle gross profit | 0.7 | 0.3 | 0.4 | 133.3 | % | ||||||||||||||||||
Total new vehicle gross profit | $ | 138.6 | $ | 69.1 | $ | 69.5 | 100.6 | % | |||||||||||||||
Retail new vehicle unit sales | 20,283 | 23,736 | (3,453) | (14.5) | % | ||||||||||||||||||
Fleet new vehicle unit sales | 277 | 541 | (264) | (48.8) | % | ||||||||||||||||||
Total new unit sales | 20,560 | 24,277 | (3,717) | (15.3) | % | ||||||||||||||||||
Revenue per retail unit | $ | 54,711 | $ | 47,637 | $ | 7,074 | 14.8 | % | |||||||||||||||
Revenue per fleet unit | 49,097 | 41,220 | 7,877 | 19.1 | % | ||||||||||||||||||
Total revenue per unit | $ | 54,635 | $ | 47,494 | $ | 7,141 | 15.0 | % | |||||||||||||||
Gross profit per retail unit | $ | 6,799 | $ | 2,900 | $ | 3,899 | 134.4 | % | |||||||||||||||
Gross profit per fleet unit | 2,348 | 459 | 1,889 | 411.5 | % | ||||||||||||||||||
Total gross profit per unit | $ | 6,739 | $ | 2,846 | $ | 3,893 | 136.8 | % | |||||||||||||||
Retail gross profit as a % of revenue | 12.4 | % | 6.1 | % | 630 | bps | |||||||||||||||||
Fleet gross profit as a % of revenue | 5.1 | % | 1.3 | % | 380 | bps | |||||||||||||||||
Total gross profit as a % of revenue | 12.3 | % | 6.0 | % | 630 | bps |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions, except unit data) | |||||||||||||||||||||||
Total used vehicle revenue: | |||||||||||||||||||||||
Same store | $ | 723.1 | $ | 659.1 | $ | 64.0 | 9.7 | % | |||||||||||||||
Acquisitions, open points, dispositions and holding company | 130.6 | 2.4 | 128.2 | NM | |||||||||||||||||||
Total as reported | $ | 853.7 | $ | 661.5 | $ | 192.2 | 29.1 | % | |||||||||||||||
Total used vehicle gross profit: | |||||||||||||||||||||||
Same store | $ | 39.2 | $ | 34.5 | $ | 4.7 | 13.6 | % | |||||||||||||||
Acquisitions, open points, dispositions and holding company | 7.7 | (2.5) | 10.2 | 408.0 | % | ||||||||||||||||||
Total as reported | $ | 46.9 | $ | 32.0 | $ | 14.9 | 46.6 | % | |||||||||||||||
Total used vehicle unit sales: | |||||||||||||||||||||||
Same store | 22,717 | 27,120 | (4,403) | (16.2) | % | ||||||||||||||||||
Acquisitions, open points, dispositions and holding company | 4,361 | 116 | 4,245 | NM | |||||||||||||||||||
Total as reported | 27,078 | 27,236 | (158) | (0.6) | % |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions, except unit and per unit data) | |||||||||||||||||||||||
Reported used vehicle: | |||||||||||||||||||||||
Revenue | $ | 853.7 | $ | 661.5 | $ | 192.2 | 29.1 | % | |||||||||||||||
Gross profit | $ | 46.9 | $ | 32.0 | $ | 14.9 | 46.6 | % | |||||||||||||||
Unit sales | 27,078 | 27,236 | (158) | (0.6) | % | ||||||||||||||||||
Revenue per unit | $ | 31,527 | $ | 24,289 | $ | 7,238 | 29.8 | % | |||||||||||||||
Gross profit per unit | $ | 1,731 | $ | 1,175 | $ | 556 | 47.3 | % | |||||||||||||||
Gross profit as a % of revenue | 5.5 | % | 4.8 | % | 70 | bps |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions, except unit and per unit data) | |||||||||||||||||||||||
Same store used vehicle: | |||||||||||||||||||||||
Revenue | $ | 723.1 | $ | 659.1 | $ | 64.0 | 9.7 | % | |||||||||||||||
Gross profit | $ | 39.2 | $ | 34.5 | $ | 4.7 | 13.6 | % | |||||||||||||||
Unit sales | 22,717 | 27,120 | (4,403) | (16.2) | % | ||||||||||||||||||
Revenue per unit | $ | 31,831 | $ | 24,303 | $ | 7,528 | 31.0 | % | |||||||||||||||
Gross profit per unit | $ | 1,728 | $ | 1,273 | $ | 455 | 35.7 | % | |||||||||||||||
Gross profit as a % of revenue | 5.4 | % | 5.2 | % | 20 | bps |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions, except unit data) | |||||||||||||||||||||||
Total wholesale vehicle revenue: | |||||||||||||||||||||||
Same store | $ | 82.5 | $ | 56.0 | $ | 26.5 | 47.3 | % | |||||||||||||||
Acquisitions, open points, dispositions and holding company | 23.8 | 0.2 | 23.6 | NM | |||||||||||||||||||
Total as reported | $ | 106.3 | $ | 56.2 | $ | 50.1 | 89.1 | % | |||||||||||||||
Total wholesale vehicle gross profit (loss): | |||||||||||||||||||||||
Same store | $ | (0.4) | $ | 0.8 | $ | (1.2) | (150.0) | % | |||||||||||||||
Acquisitions, open points, dispositions and holding company | — | (0.1) | 0.1 | 100.0 | % | ||||||||||||||||||
Total as reported | $ | (0.4) | $ | 0.7 | $ | (1.1) | (157.1) | % | |||||||||||||||
Total wholesale vehicle unit sales: | |||||||||||||||||||||||
Same store | 5,362 | 6,803 | (1,441) | (21.2) | % | ||||||||||||||||||
Acquisitions, open points, dispositions and holding company | 1,410 | 29 | 1,381 | NM | |||||||||||||||||||
Total as reported | 6,772 | 6,832 | (60) | (0.9) | % | ||||||||||||||||||
NM = Not Meaningful |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions, except unit and per unit data) | |||||||||||||||||||||||
Reported wholesale vehicle: | |||||||||||||||||||||||
Revenue | $ | 106.3 | $ | 56.2 | $ | 50.1 | 89.1 | % | |||||||||||||||
Gross profit (loss) | $ | (0.4) | $ | 0.7 | $ | (1.1) | (157.1) | % | |||||||||||||||
Unit sales | 6,772 | 6,832 | (60) | (0.9) | % | ||||||||||||||||||
Revenue per unit | $ | 15,697 | $ | 8,227 | $ | 7,470 | 90.8 | % | |||||||||||||||
Gross profit (loss) per unit | $ | (60) | $ | 108 | $ | (168) | (155.6) | % | |||||||||||||||
Gross profit (loss) as a % of revenue | (0.4) | % | 1.2 | % | (160) | bps |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions, except unit and per unit data) | |||||||||||||||||||||||
Same store wholesale vehicle: | |||||||||||||||||||||||
Revenue | $ | 82.5 | $ | 56.0 | $ | 26.5 | 47.3 | % | |||||||||||||||
Gross profit (loss) | $ | (0.4) | $ | 0.8 | $ | (1.2) | (150.0) | % | |||||||||||||||
Unit sales | 5,362 | 6,803 | (1,441) | (21.2) | % | ||||||||||||||||||
Revenue per unit | $ | 15,386 | $ | 8,232 | $ | 7,154 | 86.9 | % | |||||||||||||||
Gross profit (loss) per unit | $ | (70) | $ | 110 | $ | (180) | (163.6) | % | |||||||||||||||
Gross profit (loss) as a % of revenue | (0.5) | % | 1.4 | % | (190) | bps |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Total Fixed Operations revenue: | |||||||||||||||||||||||
Same store | $ | 344.7 | $ | 306.9 | $ | 37.8 | 12.3 | % | |||||||||||||||
Acquisitions, open points, dispositions and holding company | 35.8 | 1.2 | 34.6 | NM | |||||||||||||||||||
Total as reported | $ | 380.5 | $ | 308.1 | $ | 72.4 | 23.5 | % | |||||||||||||||
Total Fixed Operations gross profit: | |||||||||||||||||||||||
Same store | $ | 169.7 | $ | 154.3 | $ | 15.4 | 10.0 | % | |||||||||||||||
Acquisitions, open points, dispositions and holding company | 16.9 | 1.0 | 15.9 | NM | |||||||||||||||||||
Total as reported | $ | 186.6 | $ | 155.3 | $ | 31.3 | 20.2 | % |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Reported Fixed Operations: | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Customer pay | $ | 176.4 | $ | 133.3 | $ | 43.1 | 32.3 | % | |||||||||||||||
Warranty | 52.7 | 53.1 | (0.4) | (0.8) | % | ||||||||||||||||||
Wholesale parts | 49.7 | 34.7 | 15.0 | 43.2 | % | ||||||||||||||||||
Internal, sublet and other | 101.7 | 87.0 | 14.7 | 16.9 | % | ||||||||||||||||||
Total revenue | $ | 380.5 | $ | 308.1 | $ | 72.4 | 23.5 | % | |||||||||||||||
Gross profit | |||||||||||||||||||||||
Customer pay | $ | 97.8 | $ | 76.0 | $ | 21.8 | 28.7 | % | |||||||||||||||
Warranty | 31.4 | 30.9 | 0.5 | 1.6 | % | ||||||||||||||||||
Wholesale parts | 8.9 | 6.1 | 2.8 | 45.9 | % | ||||||||||||||||||
Internal, sublet and other | 48.5 | 42.3 | 6.2 | 14.7 | % | ||||||||||||||||||
Total gross profit | $ | 186.6 | $ | 155.3 | $ | 31.3 | 20.2 | % | |||||||||||||||
Gross profit as a % of revenue | |||||||||||||||||||||||
Customer pay | 55.4 | % | 57.0 | % | (160) | bps | |||||||||||||||||
Warranty | 59.5 | % | 58.2 | % | 130 | bps | |||||||||||||||||
Wholesale parts | 17.8 | % | 17.6 | % | 20 | bps | |||||||||||||||||
Internal, sublet and other | 47.7 | % | 48.6 | % | (90) | bps | |||||||||||||||||
Total gross profit as a % of revenue | 49.0 | % | 50.4 | % | (140) | bps |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Same store Fixed Operations: | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Customer pay | $ | 161.8 | $ | 132.7 | $ | 29.1 | 21.9 | % | |||||||||||||||
Warranty | 50.4 | 53.0 | (2.6) | (4.9) | % | ||||||||||||||||||
Wholesale parts | 46.0 | 34.6 | 11.4 | 32.9 | % | ||||||||||||||||||
Internal, sublet and other | 86.5 | 86.6 | (0.1) | (0.1) | % | ||||||||||||||||||
Total revenue | $ | 344.7 | $ | 306.9 | $ | 37.8 | 12.3 | % | |||||||||||||||
Gross profit | |||||||||||||||||||||||
Customer pay | $ | 91.2 | $ | 75.6 | $ | 15.6 | 20.6 | % | |||||||||||||||
Warranty | 29.7 | 30.8 | (1.1) | (3.6) | % | ||||||||||||||||||
Wholesale parts | 8.3 | 6.1 | 2.2 | 36.1 | % | ||||||||||||||||||
Internal, sublet and other | 40.5 | 41.8 | (1.3) | (3.1) | % | ||||||||||||||||||
Total gross profit | $ | 169.7 | $ | 154.3 | $ | 15.4 | 10.0 | % | |||||||||||||||
Gross profit as a % of revenue | |||||||||||||||||||||||
Customer pay | 56.3 | % | 57.0 | % | (70) | bps | |||||||||||||||||
Warranty | 58.8 | % | 58.1 | % | 70 | bps | |||||||||||||||||
Wholesale parts | 18.0 | % | 17.6 | % | 40 | bps | |||||||||||||||||
Internal, sublet and other | 46.8 | % | 48.3 | % | (150) | bps | |||||||||||||||||
Total gross profit as a % of revenue | 49.2 | % | 50.3 | % | (110) | bps |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions, except unit and per unit data) | |||||||||||||||||||||||
Total F&I revenue: | |||||||||||||||||||||||
Same store | $ | 98.1 | $ | 92.0 | $ | 6.1 | 6.6 | % | |||||||||||||||
Acquisitions, open points, dispositions and holding company | 28.4 | 5.6 | 22.8 | 407.1 | % | ||||||||||||||||||
Total as reported | $ | 126.5 | $ | 97.6 | $ | 28.9 | 29.6 | % | |||||||||||||||
Total F&I gross profit per retail unit (excludes fleet): | |||||||||||||||||||||||
Same store | $ | 2,280 | $ | 1,808 | $ | 472 | 26.1 | % | |||||||||||||||
Reported | $ | 2,448 | $ | 1,910 | $ | 538 | 28.2 | % | |||||||||||||||
Total combined retail new and used vehicle unit sales: | |||||||||||||||||||||||
Same store | 43,000 | 50,856 | (7,856) | (15.4) | % | ||||||||||||||||||
Acquisitions, open points, dispositions and holding company | 8,680 | 197 | 8,483 | NM | |||||||||||||||||||
Total as reported | 51,680 | 51,053 | 627 | 1.2 | % |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions, except unit and per unit data) | |||||||||||||||||||||||
Reported F&I: | |||||||||||||||||||||||
Revenue | $ | 126.5 | $ | 97.6 | $ | 28.9 | 29.6 | % | |||||||||||||||
Total combined retail new and used vehicle unit sales | 51,680 | 51,053 | 627 | 1.2 | % | ||||||||||||||||||
Gross profit per retail unit (excludes fleet) | $ | 2,448 | $ | 1,910 | $ | 538 | 28.2 | % |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions, except unit and per unit data) | |||||||||||||||||||||||
Same store F&I: | |||||||||||||||||||||||
Revenue | $ | 98.1 | $ | 92.0 | $ | 6.1 | 6.6 | % | |||||||||||||||
Total combined retail new and used vehicle unit sales | 43,000 | 50,856 | (7,856) | (15.4) | % | ||||||||||||||||||
Gross profit per retail unit (excludes fleet) | $ | 2,280 | $ | 1,808 | $ | 472 | 26.1 | % |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions, except unit data) | |||||||||||||||||||||||
Total used vehicle revenue: | |||||||||||||||||||||||
Same market | $ | 293.4 | $ | 391.7 | $ | (98.3) | (25.1) | % | |||||||||||||||
New markets | 223.8 | 49.7 | 174.1 | 350.3 | % | ||||||||||||||||||
Total as reported | $ | 517.2 | $ | 441.4 | $ | 75.8 | 17.2 | % | |||||||||||||||
Total used vehicle gross profit (loss): | |||||||||||||||||||||||
Same market | $ | (3.9) | $ | (1.6) | $ | (2.3) | (143.8) | % | |||||||||||||||
New markets | 5.2 | 0.2 | 5.0 | NM | |||||||||||||||||||
Total as reported | $ | 1.3 | $ | (1.4) | $ | 2.7 | 192.9 | % | |||||||||||||||
Total used vehicle unit sales: | |||||||||||||||||||||||
Same market | 8,984 | 17,358 | (8,374) | (48.2) | % | ||||||||||||||||||
New markets | 6,011 | 2,312 | 3,699 | 160.0 | % | ||||||||||||||||||
Total as reported | 14,995 | 19,670 | (4,675) | (23.8) | % | ||||||||||||||||||
NM = Not Meaningful |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Total F&I revenue: | |||||||||||||||||||||||
Same market | $ | 22.4 | $ | 41.9 | $ | (19.5) | (46.5) | % | |||||||||||||||
New markets | 17.7 | 5.2 | 12.5 | 240.4 | % | ||||||||||||||||||
Total as reported | $ | 40.1 | $ | 47.1 | $ | (7.0) | (14.9) | % |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions, except unit and per unit data) | |||||||||||||||||||||||
Reported used vehicle and F&I: | |||||||||||||||||||||||
Used vehicle revenue | $ | 517.2 | $ | 441.4 | $ | 75.8 | 17.2 | % | |||||||||||||||
Used vehicle gross profit (loss) | $ | 1.3 | $ | (1.4) | $ | 2.7 | 192.9 | % | |||||||||||||||
Used vehicle unit sales | 14,995 | 19,670 | (4,675) | (23.8) | % | ||||||||||||||||||
Used vehicle revenue per unit | $ | 34,491 | $ | 22,438 | $ | 12,053 | 53.7 | % | |||||||||||||||
F&I revenue | $ | 40.1 | $ | 47.1 | $ | (7.0) | (14.5) | % | |||||||||||||||
Combined used vehicle gross profit and F&I revenue | $ | 41.4 | $ | 45.7 | $ | (4.3) | (9.4) | % | |||||||||||||||
Total used vehicle and F&I gross profit per unit | $ | 2,755 | $ | 2,318 | $ | 437 | 18.8 | % |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions, except unit and per unit data) | |||||||||||||||||||||||
Same market used vehicle and F&I: | |||||||||||||||||||||||
Used vehicle revenue | $ | 293.4 | $ | 391.7 | $ | (98.3) | (25.1) | % | |||||||||||||||
Used vehicle gross profit (loss) | $ | (3.9) | $ | (1.6) | $ | (2.3) | (143.8) | % | |||||||||||||||
Used vehicle unit sales | 8,984 | 17,358 | (8,374) | (48.2) | % | ||||||||||||||||||
Used vehicle revenue per unit | $ | 32,658 | $ | 22,566 | $ | 10,092 | 44.7 | % | |||||||||||||||
F&I revenue | $ | 22.4 | $ | 41.9 | $ | (19.5) | (46.5) | % | |||||||||||||||
Combined used vehicle gross profit and F&I revenue | $ | 18.5 | $ | 40.3 | $ | (21.8) | (54.1) | % | |||||||||||||||
Total used vehicle and F&I gross profit per unit | $ | 2,064 | $ | 2,327 | $ | (263) | (11.3) | % |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions, except unit data) | |||||||||||||||||||||||
Total wholesale vehicle revenue: | |||||||||||||||||||||||
Same market | $ | 45.4 | $ | 16.6 | $ | 28.8 | 173.5 | % | |||||||||||||||
New markets | 17.0 | 2.0 | 15.0 | 750.0 | % | ||||||||||||||||||
Total as reported | $ | 62.4 | $ | 18.6 | $ | 43.8 | 235.5 | % | |||||||||||||||
Total wholesale vehicle gross profit (loss): | |||||||||||||||||||||||
Same market | $ | 1.8 | $ | 0.1 | $ | 1.7 | NM | ||||||||||||||||
New markets | — | 0.1 | (0.1) | (100.0) | % | ||||||||||||||||||
Total as reported | $ | 1.8 | $ | 0.2 | $ | 1.6 | 800.0 | % | |||||||||||||||
Total wholesale vehicle unit sales: | |||||||||||||||||||||||
Same market | 2,438 | 2,501 | (63) | (2.5) | % | ||||||||||||||||||
New markets | 1,211 | 360 | 851 | 236.4 | % | ||||||||||||||||||
Total as reported | $ | 3,649 | $ | 2,861 | $ | 788 | 27.5 | % | |||||||||||||||
NM = Not Meaningful |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions, except unit and per unit data) | |||||||||||||||||||||||
Reported wholesale vehicle: | |||||||||||||||||||||||
Revenue | $ | 62.4 | $ | 18.6 | $ | 43.8 | 235.5 | % | |||||||||||||||
Gross profit (loss) | $ | 1.8 | $ | 0.2 | $ | 1.6 | NM | ||||||||||||||||
Unit sales | 3,649 | 2,861 | 788 | 27.5 | % | ||||||||||||||||||
Revenue per unit | $ | 17,101 | $ | 6,503 | $ | 10,598 | 163.0 | % | |||||||||||||||
Gross profit (loss) per unit | $ | 530 | $ | 39 | $ | 491 | NM | ||||||||||||||||
Gross profit (loss) as a % of revenue | 2.9 | % | 0.6 | % | 230 | bps | |||||||||||||||||
NM = Not Meaningful |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions, except unit and per unit data) | |||||||||||||||||||||||
Same market wholesale vehicle: | |||||||||||||||||||||||
Revenue | $ | 45.4 | $ | 16.6 | $ | 28.8 | 173.5 | % | |||||||||||||||
Gross profit (loss) | $ | 1.8 | $ | 0.1 | $ | 1.7 | NM | ||||||||||||||||
Unit sales | 2,438 | 2,501 | (63) | (2.5) | % | ||||||||||||||||||
Revenue per unit | $ | 18,622 | $ | 6,637 | $ | 11,985 | 180.6 | % | |||||||||||||||
Gross profit (loss) per unit | $ | 732 | $ | 47 | $ | 685 | NM | ||||||||||||||||
Gross profit (loss) as a % of revenue | 4.0 | % | 0.6 | % | 340 | bps | |||||||||||||||||
NM = Not Meaningful |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions, except unit data) | |||||||||||||||||||||||
Segment Revenues: | |||||||||||||||||||||||
Franchised Dealerships Segment revenues: | |||||||||||||||||||||||
Retail new vehicles | $ | 1,345.7 | $ | 1,134.0 | $ | 211.7 | 18.7 | % | |||||||||||||||
Fleet new vehicles | 148.6 | 22.3 | 126.3 | 566.4 | % | ||||||||||||||||||
Total new vehicles | 1,494.3 | 1,156.3 | 338.0 | 29.2 | % | ||||||||||||||||||
Used vehicles | 853.7 | 661.5 | 192.2 | 29.1 | % | ||||||||||||||||||
Wholesale vehicles | 106.3 | 56.2 | 50.1 | 89.1 | % | ||||||||||||||||||
Parts, service and collision repair | 380.5 | 308.1 | 72.4 | 23.5 | % | ||||||||||||||||||
Finance, insurance and other, net | 126.5 | 97.6 | 28.9 | 29.6 | % | ||||||||||||||||||
Franchised Dealerships Segment revenues | $ | 2,961.3 | $ | 2,279.7 | $ | 681.6 | 29.9 | % | |||||||||||||||
EchoPark Segment revenues: | |||||||||||||||||||||||
Retail new vehicles | $ | 5.6 | $ | — | $ | 5.6 | 100.0 | % | |||||||||||||||
Used vehicles | 517.2 | 441.4 | 75.8 | 17.2 | % | ||||||||||||||||||
Wholesale vehicles | 62.4 | 18.6 | 43.8 | 235.5 | % | ||||||||||||||||||
Finance, insurance and other, net | 40.1 | 47.1 | (7.0) | (14.9) | % | ||||||||||||||||||
EchoPark Segment revenues | $ | 625.3 | $ | 507.1 | $ | 118.2 | 23.3 | % | |||||||||||||||
Total consolidated revenues | $ | 3,586.6 | $ | 2,786.8 | $ | 799.8 | 28.7 | % | |||||||||||||||
Segment Income (Loss) (1): | |||||||||||||||||||||||
Franchised Dealerships Segment | $ | 163.8 | $ | 70.6 | $ | 93.2 | 132.0 | % | |||||||||||||||
EchoPark Segment | (34.9) | 2.0 | (36.9) | NM | |||||||||||||||||||
Total segment income | $ | 128.9 | $ | 72.6 | $ | 56.3 | 77.5 | % | |||||||||||||||
Impairment charges | — | — | — | — | % | ||||||||||||||||||
Income from continuing operations before taxes | $ | 128.9 | $ | 72.6 | $ | 56.3 | 77.5 | % | |||||||||||||||
Retail New and Used Vehicle Unit Sales Volume: | |||||||||||||||||||||||
Franchised Dealerships Segment | 51,680 | 51,053 | 627 | 1.2 | % | ||||||||||||||||||
EchoPark Segment | 15,080 | 19,670 | (4,590) | (23.3) | % | ||||||||||||||||||
Total retail new and used vehicle unit sales volume | 66,760 | 70,723 | (3,963) | (5.6) | % | ||||||||||||||||||
NM = Not Meaningful |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
SG&A expenses: | |||||||||||||||||||||||
Compensation | $ | 252.5 | $ | 188.5 | $ | (64.0) | (34.0) | % | |||||||||||||||
Advertising | 26.2 | 12.2 | (14.0) | (114.8) | % | ||||||||||||||||||
Rent | 12.7 | 13.7 | 1.0 | 7.3 | % | ||||||||||||||||||
Other | 95.6 | 75.0 | (20.6) | (27.5) | % | ||||||||||||||||||
Total SG&A expenses | $ | 387.0 | $ | 289.4 | $ | (97.6) | (33.7) | % | |||||||||||||||
SG&A expenses as a % of gross profit: | |||||||||||||||||||||||
Compensation | 44.2 | % | 47.0 | % | 280 | bps | |||||||||||||||||
Advertising | 4.6 | % | 3.0 | % | (160) | bps | |||||||||||||||||
Rent | 2.2 | % | 3.4 | % | 120 | bps | |||||||||||||||||
Other | 16.7 | % | 18.8 | % | 210 | bps | |||||||||||||||||
Total SG&A expenses as a % of gross profit | 67.7 | % | 72.2 | % | 450 | bps |
Three Months Ended March 31, | Better / (Worse) | ||||||||||||||||||||||
2022 | 2021 | Change | % Change | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Stated/coupon interest | $ | 17.0 | $ | 7.6 | $ | (9.4) | (123.7) | % | |||||||||||||||
Deferred loan cost amortization | 1.1 | 0.8 | (0.3) | (37.5) | % | ||||||||||||||||||
Interest rate hedge expense (benefit) | 0.3 | 0.4 | 0.1 | 25.0 | % | ||||||||||||||||||
Capitalized interest | (0.5) | (0.4) | 0.1 | (25.0) | % | ||||||||||||||||||
Interest on finance lease liabilities | 2.7 | 1.7 | (1.0) | (58.8) | % | ||||||||||||||||||
Other interest | 0.2 | 0.2 | — | — | % | ||||||||||||||||||
Total interest expense, other, net | $ | 20.8 | $ | 10.3 | $ | (10.5) | (101.9) | % |
March 31, 2022 | December 31, 2021 | ||||||||||
(In millions) | |||||||||||
Cash and cash equivalents | $ | 360.2 | $ | 299.4 | |||||||
Availability under the 2021 Revolving Credit Facility | 274.0 | 281.4 | |||||||||
Availability under the 2019 Mortgage Facility | 24.9 | 22.2 | |||||||||
Floor plan deposit balance | 125.5 | 99.8 | |||||||||
Total available liquidity resources | $ | 784.6 | $ | 702.8 |
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
Franchised Dealerships Segment | EchoPark Segment | Discontinued Operations | Total | Franchised Dealerships Segment | EchoPark Segment | Discontinued Operations | Total | ||||||||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 97.3 | $ | 54.2 | |||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 31.6 | 19.1 | |||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before taxes | $ | 163.8 | $ | (34.9) | $ | — | $ | 128.9 | $ | 70.6 | $ | 2.0 | $ | 0.7 | $ | 73.3 | |||||||||||||||||||||||||||||||
Non-floor plan interest (1) | 19.0 | 0.7 | — | 19.7 | 9.1 | 0.4 | — | 9.5 | |||||||||||||||||||||||||||||||||||||||
Depreciation & amortization (2) | 25.9 | 5.2 | — | 31.1 | 21.2 | 3.3 | — | 24.5 | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 4.4 | — | — | 4.4 | 3.5 | — | — | 3.5 | |||||||||||||||||||||||||||||||||||||||
Long-term compensation charges | — | — | — | — | — | 0.5 | — | 0.5 | |||||||||||||||||||||||||||||||||||||||
Loss (gain) on franchise and real estate disposals | (1.1) | — | — | (1.1) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA (3) | $ | 212.0 | $ | (29.0) | $ | — | $ | 183.0 | $ | 104.4 | $ | 6.2 | $ | 0.7 | $ | 111.3 |
Issuer Purchases of Equity Securities | |||||||||||||||||||||||
Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1) | ||||||||||||||||||||
(In millions, except shares and per share data) | |||||||||||||||||||||||
January 2022 | 366,773 | $ | 48.23 | 366,773 | $ | 208,632 | |||||||||||||||||
February 2022 | 133,369 | $ | 49.75 | 133,369 | $ | 202,016 | |||||||||||||||||
March 2022 | 191,781 | $ | 46.78 | 191,781 | $ | 192,543 | |||||||||||||||||
Total | 691,923 | 691,923 |
(In millions) | |||||
July 2020 authorization | $ | 60,000 | |||
April 2021 authorization | 250,000 | ||||
Total active program repurchases prior to March 31, 2022 | (117,457) | ||||
Current remaining availability as of March 31, 2022 | $ | 192,543 |
Exhibit No. | Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
3.3 | ||||||||
3.4 | ||||||||
3.5 | ||||||||
3.6 | ||||||||
10.1* | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1** | ||||||||
32.2** | ||||||||
101.INS* | Inline XBRL Instance Document. | |||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
SONIC AUTOMOTIVE, INC. | ||||||||
April 28, 2022 | By: | /s/ DAVID BRUTON SMITH | ||||||
David Bruton Smith | ||||||||
Chief Executive Officer | ||||||||
April 28, 2022 | By: | /s/ HEATH R. BYRD | ||||||
Heath R. Byrd | ||||||||
Executive Vice President and Chief Financial Officer |
If to the Company: | With a copy to: | ||||
Sonic Automotive, Inc. | Sonic Automotive, Inc. | ||||
Attention: Chief Executive Officer | Attention: General Counsel | ||||
4401 Colwick Road | 4401 Colwick Road | ||||
Charlotte, NC 28211 | Charlotte, NC 28211 |
SONIC AUTOMOTIVE, INC. on behalf of itself, its affiliates and subsidiaries By: /s/ David B. Smith David B. Smith Title: Chief Executive Officer Date: 3/14/22 | PARTICIPANT: HEATH R. BYRD /s/ Heath R. Byrd Date: 3/14/2022 |
April 28, 2022 | |||||
By: | /s/ HEATH R. BYRD | ||||
Heath R. Byrd | |||||
Executive Vice President and Chief Financial Officer |
April 28, 2022 | |||||
By: | /s/ DAVID BRUTON SMITH | ||||
David Bruton Smith | |||||
Chief Executive Officer |
/s/ HEATH R. BYRD | ||
Heath R. Byrd | ||
Executive Vice President and Chief Financial Officer | ||
April 28, 2022 |
/s/ DAVID BRUTON SMITH | ||
David Bruton Smith | ||
Chief Executive Officer | ||
April 28, 2022 |
Details |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Document Information [Line Items] | |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Security Exchange Name | NYSE |
Entity Incorporation, State or Country Code | DE |
Document Transition Report | false |
Title of 12(b) Security | Class A Common Stock, par value $0.01 per share |
Entity Small Business | false |
Entity Emerging Growth Company | false |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 97,300 | $ 54,200 |
Other comprehensive income (loss) before taxes: | ||
Change in fair value of interest rate swap and interest rate cap agreements | 300 | 400 |
Total other comprehensive income (loss) before taxes | 300 | 400 |
Provision for income tax benefit (expense) related to components of other comprehensive income (loss) | (100) | (200) |
Other comprehensive income (loss) | 200 | 200 |
Comprehensive income (loss) | $ 97,500 | $ 54,400 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Convertible preferred stock issued | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 67,016,735 | 66,501,072 |
Common stock, shares outstanding | 28,516,272 | 28,692,532 |
Treasury stock, shares | 38,500,463 | 37,808,540 |
Class B common stock | ||
Common stock, par value (usd per share) | $ 0.01 | |
Common stock, shares authorized | 30,000,000 | |
Common stock, shares issued | 12,029,375 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Statement of Cash Flows [Abstract] | ||
Tax effect on fair value of interest rate swap and rate cap agreements | $ 100 | $ 334 |
Business Acquisitions and Dispositions |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Business Acquisitions and Dispositions | 2. Business Acquisitions and Dispositions We acquired two franchised dealership locations during the three months ended March 31, 2022 for an aggregate gross purchase price (including inventory acquired and subsequently funded by floor plan notes payable) of approximately $28.4 million, including the impact of the RFJ Acquisition post-close adjustment. Of this amount, $13.7 million was related to the acquisition of the two franchised dealerships. The allocation of the $13.7 million aggregate gross purchase price for the acquisitions completed during the three months ended March 31, 2022 included inventory of $4.9 million, property and equipment of $0.1 million, franchise assets of $6.4 million, goodwill of $1.3 million, other assets of $1.1 million and other liabilities of $0.1 million. We did not acquire any businesses during the three months ended March 31, 2021. We did not dispose of any businesses during the three months ended March 31, 2022 and 2021.
|
Inventories |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories consist of the following:
|
Property and Equipment |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Capital expenditures in all periods were primarily related to real estate acquisitions, construction of new franchised dealerships and EchoPark stores, building improvements and equipment purchased for use in our franchised dealerships and EchoPark stores. Assets held for sale as of December 31, 2021 consists of real property not currently used in operations that we expect to dispose of in the next 12 months. |
Goodwill and Intangible Assets |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets The changes in the carrying amount of goodwill for March 31, 2022 and December 31, 2021.
(1)Net of accumulated impairment losses of $1.1 billion. The carrying amount of indefinite lived franchise assets was approximately $486.6 million and $480.2 million as of March 31, 2022 and December 31, 2021, respectively.
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Long-Term Debt |
3 Months Ended |
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Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
2016 Credit Facilities [Text Block] | 2021 Credit Facilities On April 14, 2021, we entered into an amended and restated syndicated revolving credit facility (the “2021 Revolving Credit Facility”) and amended and restated syndicated new and used vehicle floor plan credit facilities (the “2021 Floor Plan Facilities” and, together with the 2021 Revolving Credit Facility, the “2021 Credit Facilities”). The amendment and restatement of the 2021 Credit Facilities extended the scheduled maturity dates to April 14, 2025. On October 8, 2021, we entered into an amendment to the 2021 Credit Facilities (the “Credit Facility Amendment”) to, among other things: (1) increase the aggregate commitments under the 2021 Revolving Credit Facility to the lesser of $350.0 million (which may be increased at the Company’s option up to $400.0 million upon satisfaction of certain conditions) and the applicable revolving borrowing base, and the 2021 Floor Plan Facilities to $2.6 billion (which, under certain conditions, may be increased at the Company’s option up to $2.85 billion that may be allocated between the new vehicle revolving floor plan facility and the used vehicle revolving floor plan facility that comprise the 2021 Floor Plan Facilities Plan Facility as the Company requests, with no more than 40% of the aggregate commitments allocated to the commitments under the used vehicle floor plan facility); and (2) permit the issuance of the 4.625% Notes and the 4.875% Notes. As amended, availability under the 2021 Revolving Credit Facility is calculated as the lesser of $350.0 million or a borrowing base calculated based on certain eligible assets, less the aggregate face amount of any outstanding letters of credit under the 2021 Revolving Credit Facility (the "2021 Revolving Borrowing Base"). The 2021 Revolving Credit Facility may be increase at our option up to $400.0 million upon satisfaction of certain conditions. As of March 31, 2022, the 2021 Revolving Borrowing Base was approximately $286.5 million based on balances as of such date. As of March 31, 2022, we had no outstanding borrowings and approximately $12.5 million in outstanding letters of credit under the 2021 Revolving Credit Facility, resulting in $274.0 million remaining borrowing availability under the 2021 Revolving Credit Facility. Our obligations under the 2021 Credit Facilities are guaranteed by us and certain of our subsidiaries and are secured by a pledge of substantially all of our and our subsidiaries’ assets. As of the dates presented in the accompanying unaudited condensed consolidated financial statements, the amounts outstanding under the 2021 Credit Facilities bear interest at variable rates based on specified percentages above LIBOR. We have agreed under the 2021 Credit Facilities not to pledge any assets to any third parties (other than those explicitly allowed to be pledged by the amended terms of the 2021 Credit Facilities), including other lenders, subject to certain stated exceptions, including floor plan financing arrangements. In addition, the 2021 Credit Facilities contain certain negative covenants, including covenants which could restrict or prohibit indebtedness, liens, the payment of dividends, capital expenditures and material dispositions and acquisitions of assets, as well as other customary covenants and default provisions. Specifically, the 2021 Credit Facilities permit quarterly cash dividends on our Class A and Class B Common Stock up to $0.25 per share so long as no Event of Default (as defined in the 2021 Credit Facilities) has occurred and is continuing and provided that we remain in compliance with all financial covenants under the 2021 Credit Facilities.
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6.125 Note Text Block [Text Block] | On October 27, 2021, we issued $650.0 million in aggregate principal amount of 4.625% Notes, which will mature on November 15, 2029. Sonic used the net proceeds from the issuance of the 4.625% Notes to fund the RFJ Acquisition and to repay existing debt. The 4.625% Notes were issued under an Indenture, dated as of October 27, 2021 (the “2029 Indenture”), by and among the Company, certain subsidiary guarantors named therein (collectively, the "Guarantors") and U.S. Bank National Association, as trustee (the “trustee”). The 4.625% Notes are unconditionally guaranteed, jointly and severally, on a senior unsecured basis initially by all of the Company's operating domestic subsidiaries. The non-domestic operating subsidiary that is not a guarantor is considered minor. Under certain circumstances set forth in the 2029 Indenture, the guarantees of the certain subsidiaries of the Company comprising the EchoPark Business (as defined in the 2029 Indenture) may be released. The 2029 Indenture also provides substantial flexibility for the Company to enter into fundamental transactions involving the EchoPark Business. The 2029 Indenture provides that interest on the 4.625% Notes will be payable semi-annually in arrears on May 15 and November 15 of each year beginning May 15, 2022. The 2029 Indenture also contains other restrictive covenants and default provisions common for an issue of senior notes of this nature. The 4.625% Notes are redeemable by the Company under certain circumstances. For further discussion of the 4.625% Notes, see Note 6, “Long-Term Debt,” to the consolidated financial statements in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2021. 4.875% Notes On October 27, 2021, we issued $500.0 million in aggregate principal amount of 4.875% Notes, which will mature on November 15, 2031. Sonic used the net proceeds from the issuance of the 4.875% Notes to fund the RFJ Acquisition and to repay existing debt. The 4.875% Notes were issued under an Indenture, dated as of October 27, 2021 (the “2031 Indenture”), by and among the Company, the Guarantors and the trustee. The 4.875% Notes are unconditionally guaranteed, jointly and severally, on a senior unsecured basis initially by all of the Company's operating domestic subsidiaries. The non-domestic operating subsidiary that is not a guarantor is considered minor. Under certain circumstances set forth in the 2031 Indenture, the guarantees of the certain subsidiaries of the Company comprising the EchoPark Business (as defined in the 2031 Indenture) may be released. The 2031 Indenture also provides substantial flexibility for the Company to enter into fundamental transactions involving the Echo-Park Business. The 2031 Indenture provides that interest on the 4.875% Notes will be payable semi-annually in arrears on May 15 and November 15 of each year beginning May 15, 2022. The 2031 Indenture also contains other restrictive covenants and default provisions common for an issue of senior notes of this nature. The 4.875% Notes are redeemable by the Company under certain circumstances. For further discussion of the 4.875% Notes, see Note 6, “Long-Term Debt,” to the consolidated financial statements in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2021.
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2019 Mortgage Facility Text Block [Text Block] | 2019 Mortgage Facility On November 22, 2019, we entered into a delayed draw-term loan credit agreement, which is scheduled to mature on November 22, 2024 (the “2019 Mortgage Facility”). On October 11, 2021, we entered into an amendment to the 2019 Mortgage Facility to permit the issuance of the 4.625% Notes and the 4.875% Notes. Under the 2019 Mortgage Facility, Sonic has a maximum borrowing limit of $112.2 million, which varies based on the appraised value of the collateral underlying the 2019 Mortgage Facility. The amount available for borrowing under the 2019 Mortgage Facility is subject to compliance with a borrowing base. The borrowing base is calculated based on 75% of the appraised value of certain eligible real estate designated by Sonic and owned by certain of our subsidiaries. Based on balances as of March 31, 2022, we had approximately $87.3 million of outstanding borrowings under the 2019 Mortgage Facility, resulting in total remaining borrowing availability of approximately $24.9 million under the 2019 Mortgage Facility. Amounts outstanding under the 2019 Mortgage Facility bear interest at (1) a specified rate above LIBOR (as defined in the 2019 Mortgage Facility), ranging from 1.50% to 2.75% per annum according to a performance-based pricing grid determined by the Company’s Consolidated Total Lease Adjusted Leverage Ratio (as defined in the 2019 Mortgage Facility) as of the last day of the immediately preceding fiscal quarter (the “Performance Grid”); or (2) a specified rate above the Base Rate (as defined in the 2019 Mortgage Facility), ranging from 0.50% to 1.75% per annum according to the Performance Grid. For further discussion of the 2019 Mortgage Facility, see Note 6, “Long-Term Debt,” to the consolidated financial statements in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2021.
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Mortgage Notes Text Block [Text Block] | Mortgage Notes to Finance Companies As of March 31, 2022, the weighted-average interest rate of our other outstanding mortgage notes (excluding the 2019 Mortgage Facility) was 3.62% and the total outstanding mortgage principal balance of these notes (excluding the 2019 Mortgage Facility) was approximately $333.0 million. These mortgage notes require monthly payments of principal and interest through their respective maturities, are secured by the underlying properties and contain certain cross-default provisions. Maturity dates for these mortgage notes range between 2022 and 2033.
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2020 Line of Credit Text Block [Text Block] |
Per Share Data and Stockholders' Equity |
3 Months Ended |
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Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Per Share Data and Stockholders' Equity | Earnings Per Share – The calculation of diluted earnings per share considers the potential dilutive effect of restricted stock units, restricted stock awards and stock options granted under Sonic’s stock compensation plans (and any non-forfeitable dividends paid on such awards). |
Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Guarantees and Indemnifications In accordance with the terms of our operating lease agreements, our dealership subsidiaries, acting as lessees, generally agree to indemnify the lessor from certain exposure arising as a result of the use of the leased premises, including environmental exposure and repairs to leased property upon termination of the lease. In addition, we have generally agreed to indemnify the lessor in the event of a breach of the lease by the lessee. In connection with dealership dispositions and facility relocations, certain of our subsidiaries have assigned or sublet to the buyer their interests in real property leases associated with such dealerships. In general, the subsidiaries retain responsibility for the performance of certain obligations under such leases, including rent payments and repairs to leased property upon termination of the lease, to the extent that the assignee or the sublessee does not perform. In the event an assignee or a sublessee does not perform its obligations, Sonic remains liable for such obligations. In accordance with the terms of agreements entered into for the sale of our dealerships, we generally agree to indemnify the buyer from certain liabilities and costs arising subsequent to the date of sale, including environmental exposure and exposure resulting from the breach of representations or warranties made in accordance with the agreements. While our exposure with respect to environmental remediation and repairs is difficult to quantify, we did not have any exposure as of March 31, 2022 and had exposure of $4.0 million at December 31, 2021. These indemnifications typically expire within a period of to three years following the date of sale. The estimated fair value of these indemnifications was not material and the amount recorded for this contingency was not significant at March 31, 2022. We also guarantee the floor plan commitments of our 50%-owned joint venture, and the amount of such guarantee was approximately $4.3 million at both March 31, 2022 and December 31, 2021. Legal Matters Sonic is involved, and expects to continue to be involved, in various legal and administrative proceedings arising out of the conduct of its business, including regulatory investigations and private civil actions brought by plaintiffs purporting to represent a potential class or for which a class has been certified. Although Sonic vigorously defends itself in all legal and administrative proceedings, the outcomes of pending and future proceedings arising out of the conduct of Sonic’s business, including litigation with customers, employment-related lawsuits, contractual disputes, class actions, purported class actions and actions brought by governmental authorities, cannot be predicted with certainty. An unfavorable resolution of one or more of these matters could have a material adverse effect on Sonic’s business, financial condition, results of operations, cash flows or prospects. Included in other accrued liabilities and other long-term liabilities in the accompanying unaudited condensed consolidated balance sheet as of March 31, 2022 and December 31, 2021 were approximately $1.6 million and $0.3 million, respectively, in reserves that Sonic was holding for pending proceedings. Except as reflected in such reserves, Sonic is currently unable to estimate a range of reasonably possible loss, or a range of reasonably possible loss in excess of the amount accrued, for pending proceedings.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | 8. Fair Value Measurements Assets and liabilities recorded at fair value in the accompanying unaudited condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021 were as follows:
(1)Included in other assets in the accompanying unaudited condensed consolidated balance sheets. (2)Included in other long-term liabilities in the accompanying unaudited condensed consolidated balance sheets. There were no instances during the three months ended March 31, 2022 which required a fair value measurement of assets ordinarily measured at fair value on a non-recurring basis. These assets will be evaluated as of the annual valuation assessment date of October 1, 2022 or as events or changes in circumstances require. As of March 31, 2022 and December 31, 2021, the fair values of Sonic’s financial instruments, including receivables, notes receivable from finance contracts, notes payable – floor plan, trade accounts payable, borrowings under the revolving credit facilities and certain mortgage notes, approximated their carrying values due either to length of maturity or existence of variable interest rates that approximate prevailing market rates. As of March 31, 2022 and December 31, 2021, the fair value and carrying value of Sonic’s significant fixed rate long-term debt were as follows:
(1)As determined by market quotations from similar securities as of March 31, 2022 and December 31, 2021, respectively (Level 2). For further discussion of Sonic’s fair value measurements, see Note 11, “Fair Value Measurements,” to the consolidated financial statements in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2021.
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Accumulated Other Comprehensive Income (Loss) |
3 Months Ended |
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Mar. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)For further discussion of Sonic’s accumulated other comprehensive income (loss), see Note 13, “Accumulated Other Comprehensive Income (Loss),” to the consolidated financial statements in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2021. For further discussion of Sonic’s defined benefit pension plan, see Note 10, “Employee Benefit Plans,” to the consolidated financial statements in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2021. |
Segment Information |
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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:
(1)Segment income (loss) for each segment is defined as income (loss) from continuing operations before taxes and impairment charges.
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Business Combinations |
3 Months Ended |
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Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Business Acquisitions and Dispositions | 2. Business Acquisitions and Dispositions We acquired two franchised dealership locations during the three months ended March 31, 2022 for an aggregate gross purchase price (including inventory acquired and subsequently funded by floor plan notes payable) of approximately $28.4 million, including the impact of the RFJ Acquisition post-close adjustment. Of this amount, $13.7 million was related to the acquisition of the two franchised dealerships. The allocation of the $13.7 million aggregate gross purchase price for the acquisitions completed during the three months ended March 31, 2022 included inventory of $4.9 million, property and equipment of $0.1 million, franchise assets of $6.4 million, goodwill of $1.3 million, other assets of $1.1 million and other liabilities of $0.1 million. We did not acquire any businesses during the three months ended March 31, 2021. We did not dispose of any businesses during the three months ended March 31, 2022 and 2021.
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Subsequent Events |
3 Months Ended |
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Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 10. Subsequent EventsSubsequent to March 31, 2021, we repurchased an additional 1.0 million shares of Class A Common Stock at an average price of $42.40, resulting in current remaining availability of approximately $150.0 million |
Summary of Significant Accounting Policies (Policies) |
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Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation – The accompanying unaudited condensed consolidated financial statements of Sonic Automotive, Inc. and its wholly owned subsidiaries (“Sonic,” the “Company,” “we,” “us” or “our”) for the three months ended March 31, 2022 and 2021 are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (the “U.S.”) (“GAAP”) for interim financial information and applicable rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The accompanying unaudited condensed consolidated financial statements reflect, in the opinion of management, all material normal, recurring adjustments necessary to fairly state the financial position, results of operations and cash flows for the periods presented. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2021. |
Principles of Consolidation | Principles of Consolidation – All of our dealership and non-dealership subsidiaries are wholly owned and consolidated in the accompanying unaudited condensed consolidated financial statements, except for one 50%-owned dealership that is accounted for under the equity method. All material intercompany balances and transactions have been eliminated in the accompanying unaudited condensed consolidated financial statements. |
Revenue from Contract with Customers | Revenue Recognition – Revenue is recognized when a customer obtains control of promised goods or services and in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. We do not include the cost of obtaining contracts within the related revenue streams since we elected the practical expedient to expense the costs to obtain a contract when incurred. Management has evaluated our established business processes, revenue transaction streams and accounting policies, and identified our material revenue streams to be: (1) the sale of new vehicles; (2) the sale of used vehicles to retail customers; (3) the sale of wholesale used vehicles at third-party auctions; (4) the arrangement of vehicle financing and the sale of service, warranty and other insurance contracts; and (5) the performance of vehicle maintenance and repair services and the sale of related parts and accessories. Generally, performance obligations are satisfied when the associated vehicle is either delivered to a customer and customer acceptance has occurred, over time as the maintenance and repair services are performed, or at the time of wholesale and retail parts sales. We do not have any revenue streams with significant financing components as payments are typically received within a short period of time following completion of the performance obligation(s). Retrospective finance and insurance revenues (“F&I retro revenues”) are recognized when the product contract has been executed with the end customer and the transaction price is estimated each reporting period based on the expected value method using historical and projected data. F&I retro revenues can vary based on a variety of factors, including number of contracts and history of cancellations and claims. Accordingly, we utilize this historical and projected data to constrain the consideration to the extent that it is probable that a significant reversal in the amount of cumulative revenue will not occur when the uncertainty associated with the variable consideration is subsequently resolved. We record revenue when vehicles are delivered to customers, as vehicle service work is performed and when parts are delivered. Conditions for completing a sale include having an agreement with the customer, including pricing, and it being probable that the proceeds from the sale will be collected. The accompanying unaudited condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021 include approximately $24.4 million and $34.9 million, respectively, related to contract assets from F&I retro revenues recognition, which are recorded in Receivables, net. Changes in contract assets from December 31, 2021 to March 31, 2022 were primarily due to ordinary business activity, including the receipt of cash for amounts earned and recognized in prior periods. Please refer to Note 1, “Description of Business and Summary of Significant Accounting Policies,” to the consolidated financial statements in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2021 for further discussion of our revenue recognition policies and processes.
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Per Share Data and Stockholders' Equity | Earnings Per Share – The calculation of diluted earnings per share considers the potential dilutive effect of restricted stock units, restricted stock awards and stock options granted under Sonic’s stock compensation plans (and any non-forfeitable dividends paid on such awards). |
Summary of Significant Accounting Policies (Tables) |
3 Months Ended |
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Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Unusual Risks and Uncertainties | COVID-19 – The COVID-19 pandemic negatively impacted the global economy beginning in the first quarter of 2020 and continued to affect the global economy and supply chain. The impact on the economy initially affected both consumer demand and supply of manufactured goods as many countries around the world and states and municipalities in the U.S. mandated restrictions on citizen movements (i.e., shelter-in-place or stay-at-home orders) or on in-person retail trade or manufacturing activities at physical locations. The economic impact from the COVID-19 pandemic continues to impact our business. The global automotive supply chain has been significantly disrupted during the pandemic, primarily related to the production of semiconductors and other components that are used in many modern automobiles, in addition to workforce-related production delays and stoppages. As a result, automobile manufacturing is operating at lower than usual production levels, reducing the amount of new vehicle and certain parts inventory available to our dealerships. These inventory constraints, coupled with strong consumer demand and elevated levels of consumer savings, have led to low new and used vehicle inventory and a high new and used vehicle pricing environment, which drove lower retail new vehicle unit sales volumes across the industry. As a result of the pandemic and related shelter-in-place or stay-at-home orders, we transitioned many of our teammates to remote work arrangements. In situations where a teammate’s role did not permit remote work (e.g., service repair technicians), we implemented staggered work hours, social distancing and other safety measures to promote the health and safety of our teammates and guests. As a result of the systems and infrastructure we had in place prior to the pandemic, we were largely able to maintain our back-office operations, financial reporting and internal control processes with minimal disruption or changes in the effectiveness of such processes. All of our store operations were impacted by the COVID-19 pandemic to varying degrees. As of March 31, 2022, our stores remain subject to both external and self-imposed health and safety policies and practices that may affect the way we sell vehicles and interact with our guests in the future. State and local governmental restrictions on consumer and business activity may be tightened again if conditions related to the pandemic worsen as a result of future coronavirus variants. Recent Accounting Pronouncements – In March 2020, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2020-04, “Reference Rate Reform (Accounting Standards Codification (“ASC”) Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional guidance for a limited period of time to ease the potential accounting impact associated with transitioning away from reference rates that are expected to be discontinued, such as the London InterBank Offered Rate (“LIBOR”). The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The amendments in ASU 2020-04 could be adopted beginning January 1, 2020 and are effective through December 31, 2022. In January 2021, the FASB issued ASU 2021-01 which clarifies that certain optional expedients and exceptions in ASC Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. We do not currently have any contracts that have been modified, amended or renegotiated to accommodate a transition to a new reference rate, but we will continue to evaluate any such modifications or amendments to our contracts to determine the applicability of this standard on our consolidated financial statements and related financial statement disclosures.
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Inventories | Inventories consist of the following:
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Property and Equipment (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Property and Equipment, Net | Property and equipment, net consists of the following:
(1)Classified in other current assets in the accompanying unaudited condensed consolidated balance sheets.
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Long-Term Debt (Tables) |
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Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-term debt consists of the following:
(1)The interest rate on the 2021 Revolving Credit Facility (as defined below) was 100 basis points above LIBOR at both March 31, 2022 and December 31, 2021. (2)The interest rate on the 2019 Mortgage Facility (as defined below) was 150 basis points above LIBOR at both March 31, 2022 and December 31, 2021.
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Financial Covenants Include Required Specified Ratios | Covenants We have agreed under the 2021 Credit Facilities and the 2019 Mortgage Facility not to pledge any assets to any third parties (other than those explicitly allowed to be pledged by the amended terms of the 2021 Credit Facilities and the 2019 Mortgage Facility), including other lenders, subject to certain stated exceptions, including floor plan financing arrangements. In addition, the 2021 Credit Facilities and the 2019 Mortgage Facility contain certain negative covenants, including certain covenants which could restrict or prohibit indebtedness, liens, the payment of dividends and other restricted payments, capital expenditures and material dispositions and acquisitions of assets, as well as other customary covenants and default provisions. We were in compliance with the financial covenants under the 2021 Credit Facilities and the 2019 Mortgage Facility as of March 31, 2022. Financial covenants include required specified ratios (as each is defined in the 2021 Credit Facilities and the 2019 Mortgage Facility) of:
The 2021 Credit Facilities and the 2019 Mortgage Facility contain events of default, including cross defaults to other material indebtedness, change of control events and other events of default customary for syndicated commercial credit facilities. Upon the future occurrence of an event of default, we could be required to immediately repay all outstanding amounts under the 2021 Credit Facilities and the 2019 Mortgage Facility. After giving effect to the applicable restrictions on the payment of dividends under our debt agreements, as of March 31, 2022, we had approximately $413.0 million of net income and retained earnings free of such restrictions. We were in compliance with all restrictive covenants under our debt agreements as of March 31, 2022. In addition, many of our facility leases are governed by a guarantee agreement between the landlord and us that contains financial and operating covenants. The financial covenants under the guarantee agreement are identical to those under the 2021 Credit Facilities and the 2019 Mortgage Facility with the exception of one additional financial covenant related to the ratio of EBTDAR to Rent (as defined in the guarantee agreement) with a required ratio of no less than 1.50 to 1.00. As of March 31, 2022, the ratio was 13.22 to 1.00.
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Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Recorded at Fair Value | Assets and liabilities recorded at fair value in the accompanying unaudited condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021 were as follows:
(1)Included in other assets in the accompanying unaudited condensed consolidated balance sheets. (2)Included in other long-term liabilities in the accompanying unaudited condensed consolidated balance sheets.
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Fair Value and Carrying Value of Significant Fixed Rate Long-Term Debt | As of March 31, 2022 and December 31, 2021, the fair value and carrying value of Sonic’s significant fixed rate long-term debt were as follows:
(1)As determined by market quotations from similar securities as of March 31, 2022 and December 31, 2021, respectively (Level 2).
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Accumulated Other Comprehensive Income (Loss) (Tables) |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Equity [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income (Loss) | For further discussion of Sonic’s accumulated other comprehensive income (loss), see Note 13, “Accumulated Other Comprehensive Income (Loss),” to the consolidated financial statements in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2021. For further discussion of Sonic’s defined benefit pension plan, see Note 10, “Employee Benefit Plans,” to the consolidated financial statements in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2021. |
Leases, Codification Topic 842 (Tables) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
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Lease, Cost [Abstract] | |||
Finance Lease, Principal Payments | $ 900 | $ 900 | |
Leases [Abstract] | |||
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | 193,700 | $ 179,900 | |
Operating Lease, Liability, Current | 37,000 | 36,200 | |
Finance Lease, Liability, Current | 52,500 | 52,700 | |
Operating Lease, Liability, Noncurrent | 263,800 | 264,800 | |
Finance Lease, Liability, Noncurrent | $ 150,900 | $ 135,500 |
Summary of Significant Accounting Policies - Cumulative Effect of Adjustments for Adoption of ASC 606 (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
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Revenues: | |||
Revenues | $ 3,586,600,000 | $ 2,786,800,000 | |
Cost of Sales: | |||
Cost of Sales | (3,015,300,000) | (2,385,900,000) | |
Operating income (loss) | 154,400,000 | 87,900,000 | |
Assets: | |||
Receivables, net | 351,500,000 | $ 401,100,000 | |
Liabilities: | |||
Other accrued liabilities | 406,300,000 | 350,500,000 | |
Stockholders' Equity: | |||
Retained Earnings (Accumulated Deficit) | 1,138,900,000 | 1,051,700,000 | |
Parts, service and collision repair | |||
Revenues: | |||
Revenues | 380,500,000 | 320,900,000 | |
Cost of Sales: | |||
Cost of Sales | (193,900,000) | (165,900,000) | |
Finance, insurance and other, net | |||
Revenues: | |||
Revenues | 166,600,000 | $ 144,700,000 | |
ASU 2014-09 | Finance, insurance and other, net | |||
Assets: | |||
Contract assets | $ 24,400,000 | $ 34,900,000 |
Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | $ 193,700 | $ 179,900 |
Intangible assets | 486,600 | 480,200 |
Right-of-use asset | $ 293,600 | $ 293,200 |
Summary of Significant Accounting Policies - Activity (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
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Accounting Policies [Abstract] | ||
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | $ 193,700 | $ 179,900 |
Operating Lease, Right-of-Use Asset | $ 293,600 | $ 293,200 |
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Schedule of Equity Method Investments [Line Items] | |||
Percentage of dealership that is accounted for under the equity method | 50.00% | ||
Effective tax rate from continuing operations | 24.50% | 26.00% | |
Income benefit | $ (31,600) | $ (18,900) | |
Dealership | |||
Schedule of Equity Method Investments [Line Items] | |||
Percentage of dealership that is accounted for under the equity method | 50.00% | ||
ASU 2014-09 | Finance, insurance and other, net | |||
Schedule of Equity Method Investments [Line Items] | |||
Contract assets | $ 24,400 | $ 34,900 |
Business Acquisitions and Dispositions - Revenues and Other Activities Associated with Disposed Dealerships Classified as Discontinued Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Pre-tax income (loss) | $ 0 | $ 700 |
Inventories - Components of Inventories (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Inventory Disclosure [Abstract] | ||
New vehicles | $ 278,200 | $ 273,100 |
Used vehicles | 730,800 | 807,200 |
Service loaners | 112,500 | 106,300 |
Parts, accessories and other | 76,600 | 74,600 |
Net inventories | $ 1,198,100 | $ 1,261,200 |
Property and Equipment - Components of Property and Equipment, Net (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Less accumulated depreciation | $ (768,700) | $ (746,200) |
Subtotal | 1,488,600 | 1,461,000 |
Less assets held for sale | 0 | (2,200) |
Property and equipment, net | 1,488,600 | 1,458,800 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 451,200 | 447,400 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 1,278,100 | 1,240,500 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 470,100 | 451,200 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 57,900 | 68,100 |
Property, Plant and Equipment, Net, Excluding Capital Leased Assets | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 2,257,300 | $ 2,207,200 |
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 423,500 | $ 416,400 |
Net of accumulated impairment losses | 1,100,000 | 1,100,000 |
Goodwill - Franchise Segment | 219,800 | 213,500 |
Goodwill - Preowned Segment | 203,700 | 202,900 |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | 423,500 | 416,400 |
Goodwill [Line Items] | ||
Goodwill - Preowned Segment | 203,700 | 202,900 |
Net of accumulated impairment losses | 1,100,000 | 1,100,000 |
Franchise assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Franchise assets | $ 486,600 | $ 480,200 |
Long-Term Debt - 2016 Credit Facilities (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Dec. 31, 2021 |
|
TwoThousandSixteenRevolvingCreditFacilityMember | ||
Line of Credit Facility [Line Items] | ||
2016 Revolving Credit Facility | $ 0 | $ 0 |
Revolving Credit Facility | Two Thousand Twenty Vehicle Floor Plan Facility | ||
Line of Credit Facility [Line Items] | ||
Current borrowing capacity | 2,600,000,000 | |
Maximum borrowing capacity | $ 2,850,000,000 | |
Maximum aggregate commitments allocated to commitments under the 2016 Used Vehicle Floor Plan Facility | 40.00% | |
Revolving Credit Facility | TwoThousandTwentyRevolvingCreditFacility | ||
Line of Credit Facility [Line Items] | ||
Current borrowing capacity | $ 350,000,000 | |
Maximum borrowing capacity | 400,000,000 | |
Borrowing base | 286,500,000 | |
2016 Revolving Credit Facility | 0 | |
Letters of credit outstanding amount | 12,500,000 | |
Borrowing availability amount | $ 274,000,000 | |
Maximum dividend (usd per share) | $ 0.25 |
Long-Term Debt - Covenants (Details) $ in Millions |
Mar. 31, 2022
USD ($)
|
---|---|
Line of Credit Facility [Line Items] | |
Minimum Consolidated Liquidity Ratio | 126.00% |
Minimum Consolidated Fixed Charge Coverage Ratio | 266.00% |
Maximum Consolidated Total Lease Adjusted Leverage Ratio | 211.00% |
2016 Credit Facilities | |
Line of Credit Facility [Line Items] | |
Net income and retained earnings free of restrictions | $ 413.0 |
Minimum EBTDAR to rent ratio | 1322.00% |
Required ratio | |
Line of Credit Facility [Line Items] | |
Minimum Consolidated Liquidity Ratio | 105.00% |
Minimum Consolidated Fixed Charge Coverage Ratio | 120.00% |
Maximum Consolidated Total Lease Adjusted Leverage Ratio | 575.00% |
Required ratio | 2016 Credit Facilities | |
Line of Credit Facility [Line Items] | |
Minimum EBTDAR to rent ratio | 150.00% |
Long-Term Debt (Details) - TwoThousandTwentyRevolvingCreditFacility - Revolving Credit Facility |
Mar. 31, 2022
USD ($)
|
---|---|
Line of Credit Facility [Line Items] | |
2016 Revolving Credit Facility | $ 0 |
Borrowing availability amount | $ 274,000,000 |
Per Share Data and Stockholders' Equity - Dilutive Effect on Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Weighted Average Shares | ||
Weighted average common shares outstanding | 40,400 | 41,500 |
Diluted earnings (loss) (shares) | 41,800 | 43,500 |
From Continuing Operations | ||
Earnings (loss) | $ 97,300 | $ 53,700 |
Basic earnings (loss) per share (usd per share) | $ 2.41 | $ 1.29 |
From Discontinued Operations | ||
Earnings (loss) | $ 0 | $ 500 |
Basic earnings (loss) per share (usd per share) | $ 0 | $ 0.02 |
Net Income (Loss) | ||
Earnings (loss) | $ 97,300 | $ 54,200 |
Basic earnings (loss) per share (usd per share) | $ 2.41 | $ 1.31 |
Effect of dilutive securities: | ||
Earnings (loss) per share from continuing operations (usd per share) | 2.33 | 1.23 |
Earnings (loss) per share from discontinued operations (usd per share) | 0 | 0.02 |
Earnings (loss) per common share (usd per share) | $ 2.33 | $ 1.25 |
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Dec. 31, 2021 |
|
Other Commitments [Line Items] | ||
Maximum exposure associated with general indemnifications | $ 0 | $ 4,000 |
General indemnifications minimum expiration period | 1 year | |
General indemnifications maximum expiration period | 3 years | |
Percentage of dealership that is accounted for under the equity method | 50.00% | |
Contingent liability reserve balance after reduction | $ 4,300 | $ 4,300 |
Other accrued liabilities | ||
Other Commitments [Line Items] | ||
Amount reserved for pending proceedings | 1,600 | |
Other long-term liabilities | ||
Other Commitments [Line Items] | ||
Amount reserved for pending proceedings | $ 300 |
Fair Value Measurements - Assets and Liabilities Recorded at Fair Value (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Dec. 31, 2021 |
|
Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Tangible Asset Impairment Charges | $ 0 | |
Fair Value Based on Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash surrender value of life insurance policies | 38,500 | $ 39,500 |
Total assets | 38,500 | 39,500 |
Liabilities: | ||
Deferred compensation plan | 23,500 | 24,400 |
Total liabilities | $ 23,500 | 24,400 |
Fair Value Based on Significant Other Observable Inputs (Level 2) | Other accrued liabilities | ||
Liabilities: | ||
Cash flow swaps and interest rate caps designated as hedges | 0 | |
Fair Value Based on Significant Other Observable Inputs (Level 2) | Other long-term liabilities | ||
Liabilities: | ||
Cash flow swaps and interest rate caps designated as hedges | $ 0 |
Fair Value Measurements - Fair Value and Carrying Value of Significant Fixed Rate Long-Term Debt (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
Oct. 13, 2021 |
---|---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Value | $ 1,546,300 | $ 1,561,300 | |
5.0% Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Stated interest rate | 5.00% | ||
6.125% Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Stated interest rate | 6.125% | 6.125% | |
4.875% Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | $ 443,800 | 504,800 | |
Carrying Value | $ 500,000 | 500,000 | |
Stated interest rate | 4.875% | ||
4.625% Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | $ 580,100 | 655,900 | |
Carrying Value | $ 650,000 | $ 650,000 | |
Stated interest rate | 4.625% |
Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 1,076,400 | $ 814,800 |
Other comprehensive income (loss) | 200 | 200 |
Ending balance | 1,135,000 | 826,400 |
Total Accumulated Other Comprehensive Income (Loss) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (1,300) | (3,600) |
Other comprehensive income (loss) | 200 | 200 |
Ending balance | $ (1,100) | $ (3,400) |
Segment Information - Additional Information (Details) |
3 Months Ended |
---|---|
Mar. 31, 2022
Segment
| |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Leases, Codification Topic 842 (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Leases [Abstract] | ||
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | $ 193,700 | $ 179,900 |
Right-of-use asset | $ 293,600 | $ 293,200 |
Subsequent Events (Details) |
Mar. 31, 2022 |
Mar. 31, 2022
USD ($)
|
Mar. 31, 2022
shares
|
Mar. 31, 2022
$ / shares
|
Oct. 13, 2021
USD ($)
|
---|---|---|---|---|---|
Subsequent Event [Line Items] | |||||
Subsequent Class A Common Stock Repurchase | 150,000,000 | 1,000,000 | |||
Subsequent Class A Common Stock Repurchase Ave Price | $ / shares | $ 42.4 | ||||
6.125% Notes | |||||
Subsequent Events [Abstract] | |||||
Principal amount | $ 250,000,000 | ||||
Stated interest rate | 6.125% | 6.125% | |||
Subsequent Event [Line Items] | |||||
Principal amount | $ 250,000,000 | ||||
Stated interest rate | 6.125% | 6.125% |
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