Sonic Automotive Reports First Quarter 2025 Financial Results

Yahoo

24-04-2025

EchoPark Reports All-Time Record Quarterly Gross Profit, Segment Income, and Adjusted EBITDA*
CHARLOTTE, N.C., April 24, 2025--(BUSINESS WIRE)--Sonic Automotive, Inc. ("Sonic Automotive," "Sonic," the "Company," "we" "us" or "our") (NYSE:SAH), one of the nation's largest automotive retailers, today reported financial results for the first quarter ended March 31, 2025.
First Quarter 2025 Financial Summary
First quarter record total revenues of $3.7 billion, up 8% year-over-year; total gross profit of $566.4 million, up 6% year-over-year
Reported net income of $70.6 million, up 68% year-over-year ($2.04 earnings per diluted share, up 70% year-over-year)
Reported net income for the first quarter of 2025 includes the effect of a $30.0 million pre-tax gain from cyber insurance proceeds and a $0.2 million pre-tax gain on the sale of real estate, offset partially by a $1.4 million non-cash pre-tax impairment charge, a $1.2 million pre-tax disposition related loss, and a $0.9 million pre-tax charge related to storm damage (collectively, these items are partially offset by a $7.4 million tax expense on the above net benefit)
Reported net income for the first quarter of 2024 includes the effect of a $2.2 million pre-tax charge related to accelerated equity compensation vesting, a $1.0 million non-cash pre-tax impairment charge and a $4.2 million pre-tax charge related to the closure of stores in the EchoPark Segment (collectively, these items are partially offset by a $1.9 million tax benefit on the above charges)
Excluding these items, adjusted net income* was $51.3 million, up 8% year-over-year ($1.48 adjusted earnings per diluted share*, up 9% year-over-year)
Total reported selling, general and administrative ("SG&A") expenses as a percentage of gross profit of 67.1% (66.0% on a Franchised Dealerships Segment basis, 70.1% on an EchoPark Segment basis, and 112.5% on a Powersports Segment basis)
Total adjusted SG&A expenses as a percentage of gross profit* of 72.1% (71.8% on a Franchised Dealerships Segment basis, 70.4% on an EchoPark Segment basis, and 102.0% on a Powersports Segment basis)
EchoPark Segment revenues of $559.7 million, flat year-over-year; all-time record quarterly EchoPark Segment total gross profit of $63.9 million, up 21% year-over-year; EchoPark Segment retail used vehicle unit sales volume of 18,798, up 5% year-over-year
Reported EchoPark Segment income of $10.3 million, as compared to a segment loss of $2.9 million in the prior year period, a 455% improvement year-over-year
Adjusted EchoPark Segment income* of $10.1 million, as compared to $1.3 million in the prior year period, a 677% improvement year-over-year
All-time record quarterly EchoPark Segment adjusted EBITDA* of $15.8 million, as compared to $7.3 million adjusted EBITDA* in the prior year period, up 116% year-over-year,
Sonic's Board of Directors approved a quarterly cash dividend of $0.35 per share, payable on July 15, 2025 to all stockholders of record on June 13, 2025
* Represents a non-GAAP financial measure — please refer to the discussion and reconciliation of non-GAAP financial measures below.
Commentary
David Smith, Chairman and Chief Executive Officer of Sonic Automotive, stated, "In the first quarter, our team continued to execute at a high level, driving record first quarter consolidated revenues and combined new and used retail unit sales volume, in addition to all-time record quarterly adjusted EBITDA* in our EchoPark Segment. Going forward, we remain focused on delivering an outstanding experience for our guests and teammates, continuing to grow our EchoPark volume and profitability, gaining market share in our franchised dealerships and powersports segments, and optimizing our expense structure to drive sustained success. Despite uncertainty around the impact of tariffs on pricing, vehicle and parts inventory levels, gross margin, and consumer demand, our entire team remains focused on executing our strategy and continuing to grow our business, in order to create long-term value for our stakeholders."
Jeff Dyke, President of Sonic Automotive, commented, "Our Franchised Dealerships Segment generated first quarter record total revenues, fixed operations gross profit, and F&I gross profit, and continues to execute our operational strategy at a high level. Our EchoPark team did an excellent job in the first quarter, achieving all-time record quarterly gross profit, segment income and adjusted EBITDA*, capitalizing on seasonal strength and setting the stage for continued operating efficiency going forward. In our Powersports Segment, we are beginning to see the benefits of our investment in modernizing our inventory management and marketing processes, which will be key to success in this segment."
Heath Byrd, Chief Financial Officer of Sonic Automotive, added, "As of March 31, 2025, we had approximately $430 million in cash and floor plan deposits on hand, with total liquidity of approximately $947 million, before considering unencumbered real estate. In light of uncertainty around the effects that tariffs are expected to have on the automotive industry and our business, we have updated or withdrawn certain items in our previous financial guidance for 2025. Please refer to our updated guidance for 2025 in our investor presentation released this morning. Despite this uncertainty, we remain optimistic about opportunities to strategically deploy our capital to grow our revenue base and enhance shareholder returns, while managing the impact of tariffs on our business."
First Quarter 2025 Segment Highlights
The financial measures discussed below are results for the first quarter of 2025 with comparisons made to the first quarter of 2024, unless otherwise noted.
Franchised Dealerships Segment operating results include:
Same store revenues up 8%; same store gross profit up 3%
Same store retail new vehicle unit sales volume up 10%; same store retail new vehicle gross profit per unit down 17%, to $3,089
Same store retail used vehicle unit sales volume down 2%; same store retail used vehicle gross profit per unit down 3%, to $1,555
Same store parts, service and collision repair ("Fixed Operations") gross profit up 7%; same store customer pay gross profit up 2%; same store warranty gross profit up 38%; same store Fixed Operations gross profit margin up 70 basis points, to 50.8%
Same store finance and insurance ("F&I") gross profit up 8%; same store F&I gross profit per retail unit of $2,442, up 4%
On a trailing quarter cost of sales basis, the Franchised Dealerships Segment had 51 days' supply of new vehicle inventory (including in-transit) and 31 days' supply of used vehicle inventory
EchoPark Segment operating results include:
Revenues of $559.7 million, flat year-over-year; all-time record quarterly gross profit of $63.9 million, up 21%
On a same market basis (which excludes closed stores), revenues were up 3% and gross profit was up 19%
Retail used vehicle unit sales volume of 18,798, up 5%
On a same market basis (which excludes closed stores), retail used vehicle unit sales volume was up 7%
All-time record quarterly reported segment income of $10.3 million, all-time record quarterly adjusted segment income* of $10.1 million, and all-time record quarterly adjusted EBITDA* of $15.8 million
On a trailing quarter cost of sales basis, the EchoPark Segment had 35 days' supply of used vehicle inventory
Powersports Segment operating results include:
First quarter record revenues of $34.4 million, up 24%; gross profit of $8.5 million, up 9%
Segment loss of $3.5 million, a 52% increase from a segment loss of $2.3 million in the prior year period, and adjusted EBITDA loss* of $0.7 million, a 13% improvement from an adjusted EBITDA loss* of $0.8 million in the prior year period
* Represents a non-GAAP financial measure — please refer to the discussion and reconciliation of non-GAAP financial measures below.
Dividend
Sonic's Board of Directors approved a quarterly cash dividend of $0.35 per share, payable on July 15, 2025 to all stockholders of record on June 13, 2025.
First Quarter 2025 Earnings Conference Call
Senior management will hold a conference call today at 11:00 A.M. (Eastern). Investor presentation and earnings press release materials will be accessible beginning prior to the conference call on the Company's website at ir.sonicautomotive.com.
To access the live webcast of the conference call, please go to ir.sonicautomotive.com and select the webcast link at the top of the page. For telephone access to this conference call, please dial [phone] (domestic) or [phone] (international) and ask to be connected to the Sonic Automotive First Quarter 2025 Earnings Conference Call. Dial-in access remains available throughout the live call; however, to ensure you are connected for the full call we suggest dialing in at least 10 minutes before the start of the call. A webcast replay will be available following the call for 14 days at ir.sonicautomotive.com.
About Sonic Automotive
Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, North Carolina, is on a quest to become the most valuable diversified automotive retail and service brand in America. Our Company culture thrives on creating, innovating, and providing industry-leading guest experiences, driven by strategic investments in technology, teammates, and ideas that ultimately fulfill ownership dreams, enrich lives, and deliver happiness to our guests and teammates. As one of the largest automotive and powersports retailers in America, we are committed to delivering on this goal while pursuing expansive growth and taking progressive measures to be the leader in these categories. Our new platforms, programs, and people are set to drive the next generation of automotive and powersports experiences. More information about Sonic Automotive can be found at www.sonicautomotive.com and ir.sonicautomotive.com.
About EchoPark Automotive
EchoPark Automotive is one of the most comprehensive retailers of nearly new pre-owned vehicles in America today. Our unique business model offers a best-in-class shopping experience and utilizes one of the most innovative technology-enabled sales strategies in our industry. Our approach provides a personalized and proven guest-centric buying process that consistently delivers award-winning guest experiences and superior value to car buyers nationwide, with savings of up to $3,000 versus the competition. Consumers have responded by putting EchoPark among the top national pre-owned vehicle retailers in products, sales, and service, while receiving the 2023 Consumer Satisfaction Award from DealerRater. EchoPark's mission is in the name: Every Car, Happy Owner. This drives the experience for guests and differentiates EchoPark from the competition. More information about EchoPark Automotive can be found at www.echopark.com.
Forward-Looking Statements
Included herein are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements address our future objectives, plans and goals, as well as our intent, beliefs and current expectations regarding future operating performance, results and events, and can generally be identified by words such as "may," "will," "should," "could," "believe," "expect," "estimate," "anticipate," "intend," "plan," "foresee" and other similar words or phrases. You should not place undue reliance on these statements, and you are cautioned that these forward-looking statements are not guarantees of future performance. There are many factors that affect management's views about future events and trends of the Company's business. These factors involve risks and uncertainties that could cause actual results or trends to differ materially from management's views, including, without limitation, the effects of tariffs on vehicle and parts pricing and supply, the effects of tariffs on consumer demand, economic conditions in the markets in which we operate, supply chain disruptions and manufacturing delays, labor shortages, the impacts of inflation and changes in interest rates, new and used vehicle industry sales volume, future levels of consumer demand for new and used vehicles, anticipated future growth in each of our operating segments, the success of our operational strategies and investment in new technologies, the rate and timing of overall economic expansion or contraction, the integration of acquisitions, cybersecurity incidents and other disruptions to our information systems, and the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and other reports and information filed with the United States Securities and Exchange Commission (the "SEC"). The Company does not undertake any obligation to update forward-looking information, except as required under federal securities laws and the rules and regulations of the SEC. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
Non-GAAP Financial Measures
This press release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as adjusted net income, adjusted earnings per diluted share, adjusted SG&A expenses as a percentage of gross profit, adjusted segment income, and adjusted EBITDA. As required by SEC rules, the Company has provided reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures in the schedules included in this press release. The Company believes that these non-GAAP financial measures improve the transparency of the Company's disclosures and provide a meaningful presentation of the Company's results.
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Results of Operations - Consolidated
Three Months Ended March 31,
Better / (Worse)
2025
2024
% Change
(In millions, except per share amounts)
Revenues:
Retail new vehicles
$
1,656.3
$
1,455.8
14
%
Fleet new vehicles
22.1
19.6
13
%
Total new vehicles
1,678.4
1,475.4
14
%
Used vehicles
1,225.0
1,215.6
1
%
Wholesale vehicles
82.7
77.3
7
%
Total vehicles
2,986.1
2,768.3
8
%
Parts, service and collision repair
474.4
446.7
6
%
Finance, insurance and other, net
190.8
169.0
13
%
Total revenues
3,651.3
3,384.0
8
%
Cost of sales:
Retail new vehicles
(1,566.9
)
(1,359.4
)
(15
)%
Fleet new vehicles
(21.5
)
(18.9
)
(14
)%
Total new vehicles
(1,588.4
)
(1,378.3
)
(15
)%
Used vehicles
(1,178.6
)
(1,168.6
)
(1
)%
Wholesale vehicles
(84.1
)
(78.1
)
(8
)%
Total vehicles
(2,851.1
)
(2,625.0
)
(9
)%
Parts, service and collision repair
(233.8
)
(222.8
)
(5
)%
Total cost of sales
(3,084.9
)
(2,847.8
)
(8
)%
Gross profit
566.4
536.2
6
%
Selling, general and administrative expenses
(380.3
)
(392.2
)
3
%
Impairment charges
(1.4
)
(1.0
)
NM
Depreciation and amortization
(39.7
)
(36.3
)
(9
)%
Operating income (loss)
145.0
106.7
36
%
Other income (expense):
Interest expense, floor plan
(20.0
)
(20.3
)
1
%
Interest expense, other, net
(27.6
)
(29.0
)
5
%
Other income (expense), net
—
0.1
NM
Total other income (expense)
(47.6
)
(49.2
)
3
%
Income (loss) before taxes
97.4
57.5
69
%
Provision for income taxes - benefit (expense)
(26.8
)
(15.5
)
(73
)%
Net income (loss)
$
70.6
$
42.0
68
%
Basic earnings (loss) per common share
$
2.09
$
1.24
69
%
Basic weighted-average common shares outstanding
33.9
34.0
—
%
Diluted earnings (loss) per common share
$
2.04
$
1.20
70
%
Diluted weighted-average common shares outstanding
34.6
34.9
1
%
Dividends declared per common share
$
0.35
$
0.30
17
%
NM = Not Meaningful
Franchised Dealerships Segment - Reported
Three Months Ended March 31,
Better / (Worse)
2025
2024
% Change
(In millions, except unit and per unit data)
Revenues:
Retail new vehicles
$
1,636.9
$
1,439.9
14
%
Fleet new vehicles
22.1
19.6
13
%
Total new vehicles
1,659.0
1,459.5
14
%
Used vehicles
745.6
729.3
2
%
Wholesale vehicles
54.6
48.6
12
%
Total vehicles
2,459.2
2,237.4
10
%
Parts, service and collision repair
467.4
439.9
6
%
Finance, insurance and other, net
130.6
119.6
9
%
Total revenues
3,057.2
2,796.9
9
%
Gross Profit:
Retail new vehicles
86.7
94.1
(8
)%
Fleet new vehicles
0.6
0.7
(14
)%
Total new vehicles
87.3
94.8
(8
)%
Used vehicles
39.9
40.8
(2
)%
Wholesale vehicles
(1.0
)
(0.2
)
(400
)%
Total vehicles
126.2
135.4
(7
)%
Parts, service and collision repair
237.2
220.8
7
%
Finance, insurance and other, net
130.6
119.6
9
%
Total gross profit
494.0
475.8
4
%
Selling, general and administrative expenses
(325.9
)
(338.5
)
4
%
Impairment charges
—
(1.0
)
NM
Depreciation and amortization
(33.4
)
(29.8
)
(12
)%
Operating income (loss)
134.7
106.5
26
%
Other income (expense):
Interest expense, floor plan
(16.3
)
(16.0
)
(2
)%
Interest expense, other, net
(26.6
)
(27.8
)
4
%
Other income (expense), net
0.1
—
NM
Total other income (expense)
(42.8
)
(43.8
)
2
%
Income (loss) before taxes
91.9
62.7
47
%
Add: Impairment charges
—
1.0
NM
Segment income (loss)
$
91.9
$
63.7
44
%
Unit Sales Volume:
Retail new vehicles
28,082
25,297
11
%
Fleet new vehicles
383
379
1
%
Total new vehicles
28,465
25,676
11
%
Used vehicles
25,441
25,666
(1
)%
Wholesale vehicles
6,195
5,105
21
%
Retail new & used vehicles
53,523
50,963
5
%
Used-to-New Ratio
0.91
1.01
(10
)%
Gross Profit Per Unit:
Retail new vehicles
$
3,089
$
3,722
(17
)%
Fleet new vehicles
$
1,444
$
1,706
(15
)%
New vehicles
$
3,067
$
3,692
(17
)%
Used vehicles
$
1,568
$
1,592
(2
)%
Finance, insurance and other, net
$
2,439
$
2,348
4
%
NM = Not Meaningful
Note: Reported Franchised Dealerships Segment results include (i) same store results from the "Franchised Dealerships Segment - Same Store" table below and (ii) the effects of acquisitions, open points, dispositions and holding company impacts for the periods reported. All currently operating franchised dealership stores are included within the same store group as of the first full month following the first anniversary of the store's opening or acquisition.
Franchised Dealerships Segment - Same Store
Three Months Ended March 31,
Better / (Worse)
2025
2024
% Change
(In millions, except unit and per unit data)
Revenues:
Retail new vehicles
$
1,623.6
$
1,437.4
13
%
Fleet new vehicles
22.0
19.6
12
%
Total new vehicles
1,645.6
1,457.0
13
%
Used vehicles
731.8
726.8
1
%
Wholesale vehicles
54.0
48.2
12
%
Total vehicles
2,431.4
2,232.0
9
%
Parts, service and collision repair
461.6
438.7
5
%
Finance, insurance and other, net
129.2
119.3
8
%
Total revenues
3,022.2
2,790.0
8
%
Gross Profit:
Retail new vehicles
86.1
94.2
(9
)%
Fleet new vehicles
0.6
0.6
—
%
Total new vehicles
86.7
94.8
(9
)%
Used vehicles
38.9
40.9
(5
)%
Wholesale vehicles
(1.0
)
(0.2
)
(400
)%
Total vehicles
124.6
135.5
(8
)%
Parts, service and collision repair
234.3
219.7
7
%
Finance, insurance and other, net
129.2
119.3
8
%
Total gross profit
$
488.1
$
474.5
3
%
Unit Sales Volume:
Retail new vehicles
27,870
25,231
10
%
Fleet new vehicles
383
379
1
%
Total new vehicles
28,253
25,610
10
%
Used vehicles
25,019
25,554
(2
)%
Wholesale vehicles
6,117
5,065
21
%
Retail new & used vehicles
52,889
50,785
4
%
Used-to-New Ratio
0.90
1.01
(11
)%
Gross Profit Per Unit:
Retail new vehicles
$
3,089
$
3,732
(17
)%
Fleet new vehicles
$
1,444
$
1,706
(15
)%
New vehicles
$
3,067
$
3,702
(17
)%
Used vehicles
$
1,555
$
1,600
(3
)%
Finance, insurance and other, net
$
2,442
$
2,350
4
%
Note: All currently operating franchised dealership stores are included within the same store group as of the first full month following the first anniversary of the store's opening or acquisition.
EchoPark Segment - Reported
Three Months Ended March 31,
Better / (Worse)
2025
2024
% Change
(In millions, except unit and per unit data)
Revenues:
Used vehicles
473.7
482.9
(2
)%
Wholesale vehicles
27.3
28.6
(5
)%
Total vehicles
501.0
511.5
(2
)%
Finance, insurance and other, net
58.7
47.9
23
%
Total revenues
559.7
559.4
—
%
Gross Profit:
Used vehicles
5.4
5.3
2
%
Wholesale vehicles
(0.2
)
(0.6
)
67
%
Total vehicles
5.2
4.7
11
%
Finance, insurance and other, net
58.7
47.9
23
%
Total gross profit
63.9
52.6
21
%
Selling, general and administrative expenses
(44.8
)
(45.6
)
2
%
Impairment charges
(0.2
)
—
NM
Depreciation and amortization
(5.2
)
(5.5
)
5
%
Operating income (loss)
13.7
1.5
813
%
Other income (expense):
Interest expense, floor plan
(3.1
)
(3.8
)
18
%
Interest expense, other, net
(0.4
)
(0.7
)
43
%
Other income (expense), net
(0.1
)
0.1
NM
Total other income (expense)
(3.6
)
(4.4
)
18
%
Income (loss) before taxes
10.1
(2.9
)
448
%
Add: Impairment charges
0.2
—
NM
Segment income (loss)
$
10.3
$
(2.9
)
455
%
Unit Sales Volume:
Used vehicles
18,798
17,981
5
%
Wholesale vehicles
3,150
2,994
5
%
Gross Profit Per Unit:
Total used vehicle and F&I
$
3,411
$
2,955
15
%
NM = Not Meaningful
EchoPark Segment - Same Market
Three Months Ended March 31,
Better / (Worse)
2025
2024
% Change
(In millions, except unit and per unit data)
Revenues:
Used vehicles
$
473.7
$
473.2
—
%
Wholesale vehicles
27.3
25.5
7
%
Total vehicles
501.0
498.7
—
%
Finance, insurance and other, net
59.1
47.5
24
%
Total revenues
560.1
546.2
3
%
Gross Profit:
Used vehicles
4.3
5.6
(23
)%
Wholesale vehicles
(0.2
)
0.1
(300
)%
Total vehicles
4.1
5.7
(28
)%
Finance, insurance and other, net
59.1
47.5
24
%
Total gross profit
$
63.2
$
53.2
19
%
Unit Sales Volume:
Used vehicles
18,798
17,618
7
%
Wholesale vehicles
3,150
2,785
13
%
Gross Profit Per Unit:
Total used vehicle and F&I
$
3,373
$
3,018
12
%
Note: All currently operating EchoPark stores in a local geographic market are included within the same market group as of the first full month following the first anniversary of the market's opening.
Powersports Segment - Reported
Three Months Ended March 31,
Better / (Worse)
2025
2024
% Change
(In millions, except unit and per unit data)
Revenues:
Retail new vehicles
$
19.4
$
15.9
22
%
Used vehicles
5.7
3.4
68
%
Wholesale vehicles
0.8
0.1
700
%
Total vehicles
25.9
19.4
34
%
Parts, service and collision repair
7.0
6.8
3
%
Finance, insurance and other, net
1.5
1.5
—
%
Total revenues
34.4
27.7
24
%
Gross Profit:
Retail new vehicles
2.7
2.3
17
%
Used vehicles
1.1
0.9
22
%
Wholesale vehicles
(0.2
)
—
(100
)%
Total vehicles
3.6
3.2
13
%
Parts, service and collision repair
3.4
3.1
10
%
Finance, insurance and other, net
1.5
1.5
—
%
Total gross profit
8.5
7.8
9
%
Selling, general and administrative expenses
(9.6
)
(8.1
)
(19
)%
Impairment charges
(1.1
)
—
NM
Depreciation and amortization
(1.2
)
(1.0
)
(20
)%
Operating income (loss)
(3.4
)
(1.3
)
(162
)%
Other income (expense):
Interest expense, floor plan
(0.5
)
(0.5
)
—
%
Interest expense, other, net
(0.7
)
(0.5
)
(40
)%
Other income (expense), net
—
—
NM
Total other income (expense)
(1.2
)
(1.0
)
(20
)%
Income (loss) before taxes
(4.6
)
(2.3
)
(100
)%
Add: Impairment charges
1.1
—
NM
Segment income (loss)
$
(3.5
)
$
(2.3
)
(52
)%
Unit Sales Volume:
Retail new vehicles
993
845
18
%
Used vehicles
578
409
41
%
Wholesale vehicles
60
13
362
%
Gross Profit Per Unit:
Retail new vehicles
$
2,681
$
2,676
—
%
Used vehicles
$
1,823
$
2,185
(17
)%
Finance, insurance and other, net
$
943
$
1,197
(21
)%
NM = Not Meaningful
Powersports Segment - Same Store
Three Months Ended March 31,
Better / (Worse)
2025
2024
% Change
(In millions, except unit and per unit data)
Revenues:
Retail new vehicles
$
16.4
$
15.2
8
%
Used vehicles
4.4
3.0
47
%
Wholesale vehicles
0.7
0.1
600
%
Total vehicles
21.5
18.3
17
%
Parts, service and collision repair
5.7
6.3
(10
)%
Finance, insurance and other, net
1.4
1.4
—
%
Total revenues
28.6
26.0
10
%
Gross Profit:
Retail new vehicles
2.2
2.2
—
%
Used vehicles
0.8
0.8
—
%
Wholesale vehicles
—
—
—
%
Total vehicles
3.0
3.0
—
%
Parts, service and collision repair
2.8
2.9
(3
)%
Finance, insurance and other, net
1.4
1.4
—
%
Total gross profit
$
7.2
$
7.3
(1
)%
Unit Sales Volume:
Retail new vehicles
850
816
4
%
Used vehicles
466
374
25
%
Wholesale vehicles
60
13
362
%
Retail new & used vehicles
1,316
1,190
11
%
Used-to-New Ratio
0.55
0.46
20
%
Gross Profit Per Unit:
Retail new vehicles
$
2,588
$
2,672
(3
)%
Used vehicles
$
1,780
$
2,153
(17
)%
Finance, insurance and other, net
$
1,037
$
1,166
(11
)%
Note: All currently operating powersports stores are included within the same store group as of the first full month following the first anniversary of the store's opening or acquisition.
Non-GAAP Reconciliation - Consolidated - SG&A Expenses
Three Months Ended March 31,
Better / (Worse)
2025
2024
Change
% Change
(In millions)
Reported:
Compensation
$
258.5
$
247.3
$
(11.2
)
(5
)%
Advertising
23.8
22.3
(1.5
)
(7
)%
Rent
10.2
9.3
(0.9
)
(10
)%
Other
87.8
113.3
25.5
23
%
Total SG&A expenses
$
380.3
$
392.2
$
11.9
3
%
Adjustments:
Acquisition and disposition-related gain (loss)
$
(1.0
)
$
—
Closed store accrued expenses
—
(2.1
)
Cyber insurance proceeds
30.0
—
Storm damage charges
(0.9
)
—
Severance and long-term compensation charges
—
(4.3
)
Total SG&A adjustments
$
28.1
$
(6.4
)
Adjusted:
Total adjusted SG&A expenses
$
408.4
$
385.8
$
(22.6
)
(6
)%
Reported:
SG&A expenses as a % of gross profit:
Compensation
45.6
%
46.1
%
50
bps
Advertising
4.2
%
4.2
%
—
bps
Rent
1.8
%
1.7
%
(10
)
bps
Other
15.5
%
21.1
%
560
bps
Total SG&A expenses as a % of gross profit
67.1
%
73.1
%
600
bps
Adjustments:
Acquisition and disposition-related gain (loss)
(0.2
)%
—
%
Closed store accrued expenses
—
%
(0.4
)%
Cyber insurance proceeds
5.3
%
—
%
Storm damage charges
(0.2
)%
—
%
Severance and long-term compensation charges
—
%
(0.7
)%
Total effect of adjustments
5.0
%
(1.1
)%
Adjusted:
Total adjusted SG&A expenses as a % of gross profit
72.1
%
72.0
%
(10
)
bps
Reported:
Total gross profit
$
566.4
$
536.2
$
30.2
6
%
Non-GAAP Reconciliation - Franchised Dealerships Segment - SG&A Expenses
Three Months Ended March 31,
Better / (Worse)
2025
2024
Change
% Change
(In millions)
Reported:
Compensation
$
226.4
$
216.5
$
(9.9
)
(5
)%
Advertising
15.8
15.3
(0.5
)
(3
)%
Rent
9.7
10.1
0.4
4
%
Other
74.0
96.6
22.6
23
%
Total SG&A expenses
$
325.9
$
338.5
$
12.6
4
%
Adjustments:
Acquisition and disposition-related gain (loss)
$
(0.3
)
$
—
Cyber insurance proceeds
30.0
—
Storm damage charges
(0.9
)
—
Severance and long-term compensation charges
—
(2.2
)
Total SG&A adjustments
$
28.8
$
(2.2
)
Adjusted:
Total adjusted SG&A expenses
$
354.7
$
336.3
$
(18.4
)
(5
)%
Reported:
SG&A expenses as a % of gross profit:
Compensation
45.8
%
45.5
%
(30
)
bps
Advertising
3.2
%
3.2
%
—
bps
Rent
2.0
%
2.1
%
10
bps
Other
15.0
%
20.3
%
530
bps
Total SG&A expenses as a % of gross profit
66.0
%
71.1
%
510
bps
Adjustments:
Acquisition and disposition-related gain (loss)
(0.1
)%
—
%
Cyber insurance proceeds
6.1
%
—
%
Storm damage charges
(0.2
)%
—
%
Severance and long-term compensation charges
—
%
(0.4
)%
Total effect of adjustments
5.8
%
(0.4
)%
Adjusted:
Total adjusted SG&A expenses as a % of gross profit
71.8
%
70.7
%
(110
)
bps
Reported:
Total gross profit
$
494.0
$
475.8
$
18.2
4
%
Non-GAAP Reconciliation - EchoPark Segment - SG&A Expenses
Three Months Ended March 31,
Better / (Worse)
2024
2023
Change
% Change
(In millions)
Reported:
Compensation
$
25.9
$
25.2
$
(0.7
)
(3
)%
Advertising
7.7
6.6
(1.1
)
(17
)%
Rent
0.7
(0.8
)
(1.5
)
(188
)%
Other
10.5
14.6
4.1
28
%
Total SG&A expenses
$
44.8
$
45.6
$
0.8
2
%
Adjustments:
Closed store accrued expenses
$
—
$
(2.1
)
Acquisition and disposition-related gain (loss)
0.2
—
Severance and long-term compensation charges
—
(2.1
)
Total SG&A adjustments
$
0.2
$
(4.2
)
Adjusted:
Total adjusted SG&A expenses
$
45.0
$
41.4
$
(3.6
)
(9
)%
Reported:
SG&A expenses as a % of gross profit:
Compensation
40.5
%
47.8
%
730
bps
Advertising
12.1
%
12.6
%
50
bps
Rent
1.1
%
(1.4
)%
(250
)
bps
Other
16.4
%
27.6
%
1,120
bps
Total SG&A expenses as a % of gross profit
70.1
%
86.6
%
1,650
bps
Adjustments:
Closed store accrued expenses
—
%
(4.0
)%
Acquisition and disposition-related gain (loss)
0.3
%
—
%
Severance and long-term compensation charges
—
%
(4.0
)%
Total effect of adjustments
0.3
%
(8.0
)%
Adjusted:
Total adjusted SG&A expenses as a % of gross profit
70.4
%
78.6
%
820
bps
Reported:
Total gross profit
$
63.9
$
52.6
$
11.3
21
%
Non-GAAP Reconciliation - Powersports Segment - SG&A Expenses
Three Months Ended March 31,
Better / (Worse)
2025
2024
Change
% Change
(In millions)
Reported:
Compensation
$
6.2
$
5.6
$
(0.6
)
(11
)%
Advertising
0.2
0.4
0.2
50
%
Rent
(0.2
)
—
0.2
—
%
Other
3.4
2.1
(1.3
)
(62
)%
Total SG&A expenses
$
9.6
$
8.1
$
(1.5
)
(19
)%
Adjustments:
Acquisition and disposition-related gain (loss)
$
(0.9
)
$
—
Total SG&A adjustments
$
(0.9
)
$
—
Adjusted:
Total adjusted SG&A expenses
$
8.7
$
8.1
Reported:
SG&A expenses as a % of gross profit:
Compensation
72.6
%
72.7
%
10
bps
Advertising
2.9
%
5.1
%
220
bps
Rent
(2.0
)%
0.4
%
240
bps
Other
39.0
%
26.6
%
(1,240
)
bps
Total SG&A expenses as a % of gross profit
112.5
%
104.8
%
(770
)
bps
Adjustments:
Acquisition and disposition-related gain (loss)
(10.5
)%
—
%
Total effect of adjustments
(10.5
)%
—
%
Adjusted:
Total adjusted SG&A expenses as a % of gross profit
102.0
%
104.8
%
280
bps
Reported:
Total gross profit
$
8.5
$
7.8
$
0.7
9
%
Non-GAAP Reconciliation - Franchised Dealerships Segment - Income (Loss) Before Taxes and Segment Income (Loss)
Three Months Ended March 31,
2025
2024
% Change
(In millions)
Reported:
Income (loss) before taxes
$
91.9
$
62.7
47
%
Add: Impairment charges
—
1.0
Segment income (loss)
$
91.9
$
63.7
44
%
Adjustments:
Acquisition and disposition-related (gain) loss
$
0.3
$
—
Cyber insurance proceeds
(30.0
)
—
Storm damage charges
0.9
—
Severance and long-term compensation charges
—
2.2
Total pre-tax adjustments
$
(28.8
)
$
2.2
Adjusted:
Segment income (loss)
$
63.1
$
65.9
(4
)%
Non-GAAP Reconciliation - EchoPark Segment - Income (Loss) Before Taxes and Segment Income (Loss)
Three Months Ended March 31,
2025
2024
% Change
(In millions)
Reported:
Income (loss) before taxes
$
10.1
$
(2.9
)
448
%
Add: Impairment charges
0.2
—
Segment income (loss)
$
10.3
$
(2.9
)
455
%
Adjustments:
Closed store accrued expenses
$
—
$
2.1
Acquisition and disposition-related (gain) loss
(0.2
)
—
Severance and long-term compensation charges
—
2.1
Total pre-tax adjustments
$
(0.2
)
$
4.2
Adjusted:
Segment income (loss)
$
10.1
$
1.3
677
%
Non-GAAP Reconciliation - Powersports Segment - Income (Loss) Before Taxes and Segment Income (Loss)
Three Months Ended March 31,
2025
2024
% Change
(In millions)
Reported:
Income (loss) before taxes
$
(4.6
)
$
(2.3
)
(100
)%
Add: Impairment charges
1.1
—
Segment income (loss)
$
(3.5
)
$
(2.3
)
(52
)%
Adjustments:
Acquisition and disposition-related (gain) loss
$
0.9
$
—
Adjusted:
Adjusted segment income (loss)
$
(2.6
)
$
(2.3
)
(13
)%
Non-GAAP Reconciliation - Consolidated - Net Income (Loss) and Diluted Earnings (Loss) Per Share
Three Months Ended March 31, 2025
Three Months Ended March 31, 2024
Weighted-
Average
Shares
Net Income (Loss)
Per
Share
Amount
Weighted-
Average
Shares
Net Income (Loss)
Per
Share
Amount
(In millions, except per share amounts)
Reported net income (loss), diluted shares, and diluted earnings (loss) per share
34.6
$
70.6
$
2.04
34.9
$
42.0
$
1.20
Adjustments:
Acquisition and disposition-related (gain) loss
$
1.0
$
—
Closed store accrued expenses
—
2.1
Cyber Insurance Payment
(30.0
)
—
Storm damage charges
0.9
—
Impairment charges
1.4
1.0
Severance and long-term compensation charges
—
4.3
Total pre-tax adjustments
$
(26.7
)
$
7.4
Tax effect of above items
7.4
(1.9
)
Adjusted net income (loss), diluted shares, and diluted earnings (loss) per share
34.6
$
51.3
$
1.48
34.9
$
47.5
$
1.36
Non-GAAP Reconciliation - Adjusted EBITDA
Three Months Ended March 31, 2025
Three Months Ended March 31, 2024
Franchised Dealerships Segment
EchoPark Segment
Powersports Segment
Total
Franchised Dealerships Segment
EchoPark Segment
Powersports Segment
Total
(In millions)
Net income (loss)
$
70.6
$
42.0
Provision for income taxes
26.8
15.5
Income (loss) before taxes
$
91.9
$
10.1
$
(4.6
)
$
97.4
$
62.7
$
(2.9
)
$
(2.3
)
$
57.5
Non-floor plan interest (1)
24.9
0.5
0.7
26.1
26.3
0.6
0.5
27.4
Depreciation and amortization (2)
35.1
5.2
1.2
41.4
31.5
5.4
1.0
37.9
Stock-based compensation expense
5.8
—
—
5.8
4.4
—
—
4.4
Impairment charges
—
0.2
1.1
1.4
1.0
—
—
1.0
Severance and long-term compensation charges
—
—
—
—
2.2
2.1
—
4.3
Cyber insurance proceeds
(30.0
)
—
—
(30.0
)
—
—
—
—
Acquisition and disposition related (gain) loss
0.3
(0.2
)
0.9
1.0
—
—
—
—
Storm damage charges
0.9
—
—
0.9
—
—
—
—
Closed store accrued expenses
$
—
$
—
$
—
$
—
$
—
$
2.1
$
—
$
2.1
Adjusted EBITDA
$
128.9
$
15.8
$
(0.7
)
$
144.0
$
128.1
$
7.3
$
(0.8
)
$
134.6
Note: Due to rounding, segment level financial data may not sum to consolidated results.
(1)
Includes interest expense, other, net in the accompanying consolidated statements of operations, net of any amortization of debt issuance costs or net debt discount/premium included in (2) below.
(2)
Includes the following line items from the accompanying consolidated statements of cash flows: depreciation and amortization of property and equipment; debt issuance cost amortization; and debt discount amortization, net of premium amortization.
Non-GAAP Reconciliation - EchoPark Segment Operations and Closed Stores
Three Months Ended March 31, 2025
Three Months Ended March 31, 2024
Better / (Worse) % Change
EchoPark
Operations
Closed
Stores
Total
EchoPark
Segment
EchoPark
Operations
Closed
Stores
Total
EchoPark
Segment
EchoPark
Operations
Closed
Stores
Total
EchoPark
Segment
(In millions, except unit and per unit data)
Total revenues
$
560.1
$
(0.4
)
$
559.7
$
546.2
$
13.2
$
559.4
3
%
(103
)%
—
%
Total gross profit (loss)
$
64.1
$
(0.2
)
$
63.9
$
53.2
$
(0.6
)
$
52.6
20
%
67
%
21
%
Income (loss) before taxes
$
10.2
$
(0.1
)
$
10.1
$
2.9
$
(5.8
)
$
(2.9
)
252
%
98
%
448
%
Non-floor plan interest (1)
0.4
0.1
0.5
0.6
—
0.6
NM
NM
NM
Depreciation and amortization (2)
5.2
—
5.2
5.4
—
5.4
NM
NM
NM
Acquisition and disposition-related (gain) loss
(0.2
)
—
(0.2
)
—
—
—
NM
NM
NM
Closed store accrued expenses
—
—
—
—
2.1
2.1
NM
NM
NM
Impairment charges
0.2
—
0.2
—
—
—
NM
NM
NM
Severance and long-term compensation charges
—
—
—
0.5
1.6
2.1
NM
NM
NM
Adjusted EBITDA
$
15.8
$
—
$
15.8
$
9.4
$
(2.1
)
$
7.3
68
%
NM
116
%
Used vehicle unit sales volume
18,798
—
18,798
17,618
363
17,981
7
%
NM
5
%
Total used vehicle and F&I gross profit per unit
$
3,423
NM
$
3,411
$
3,018
NM
$
2,955
13
%
NM
15
%
NM = Not Meaningful
(1)
Includes interest expense, other, net in the accompanying consolidated statements of operations, net of any amortization of debt issuance costs or net debt discount/premium included in (2) below.
(2)
Includes the following line items from the accompanying consolidated statements of cash flows: depreciation and amortization of property and equipment; debt issuance cost amortization; and debt discount amortization, net of premium amortization.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250424021031/en/
Contacts
Company Contacts Investor Inquiries: Heath Byrd, Executive Vice President and Chief Financial OfficerDanny Wieland, Vice President, Investor Relations & Financial [e-mail]
Press Inquiries: Sonic Automotive Media [e-mail]