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v3.24.3

Segment Information (Tables) | 9 Months Ended
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Sep. 30, 2024
Segment Reporting [Abstract] |
Summary of Reportable Operating Segment | Reportable segment financial information for the three and nine months ended September 30, 2024 and 2023 were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
| (In millions)
Segment Revenues: |  |  |  |  |  |  |
Franchised Dealerships Segment revenues: |  |  |  |  |  |  |
Retail new vehicles | $ | 1,539.9 |  |  | $ | 1,546.7 |  |  | $ | 4,510.8 |  |  | $ | 4,550.9 |
Fleet new vehicles | 22.2 |  |  | 23.2 |  |  | 68.0 |  |  | 70.4 |
Total new vehicles | 1,562.1 |  |  | 1,569.9 |  |  | 4,578.8 |  |  | 4,621.3 |
Used vehicles | 701.4 |  |  | 780.7 |  |  | 2,162.8 |  |  | 2,322.8 |
Wholesale vehicles | 42.4 |  |  | 51.4 |  |  | 139.1 |  |  | 165.3 |
Parts, service and collision repair | 458.9 |  |  | 431.8 |  |  | 1,333.2 |  |  | 1,289.0 |
Finance, insurance and other, net | 122.4 |  |  | 126.0 |  |  | 366.3 |  |  | 375.4 |
Franchised Dealerships Segment revenues | $ | 2,887.2 |  |  | $ | 2,959.8 |  |  | $ | 8,580.2 |  |  | $ | 8,773.8 |
EchoPark Segment revenues: |  |  |  |  |  |  |
Retail new vehicles | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1.0 |
Used vehicles | 470.3 |  |  | 554.8 |  | 1,402.0 |  |  | 1,651.3 |
Wholesale vehicles | 23.8 |  |  | 26.6 |  |  | 74.4 |  |  | 89.1 |
Finance, insurance and other, net | 50.8 |  |  | 45.3 |  |  | 145.2 |  |  | 136.4 |
EchoPark Segment revenues | $ | 544.9 |  |  | $ | 626.7 |  |  | $ | 1,621.6 |  |  | $ | 1,877.8 |
Powersports Segment revenues: |  |  |  |  |  |  |
Retail new vehicles | $ | 26.9 |  |  | $ | 26.8 |  |  | $ | 64.4 |  |  | $ | 72.5 |
Used vehicles | 9.0 |  |  | 4.9 |  |  | 17.6 |  |  | 17.1 |
Wholesale vehicles | 1.1 |  |  | 1.3 |  |  | 2.3 |  |  | 1.9 |
Parts, service and collision repair | 20.1 |  |  | 21.6 |  |  | 36.6 |  |  | 38.6 |
Finance, insurance and other, net | 2.3 |  |  | 2.4 |  |  | 5.8 |  |  | 5.9 |
Powersports Segment revenues | $ | 59.4 |  |  | $ | 57.0 |  |  | $ | 126.7 |  |  | $ | 136.0 |
Total consolidated revenues | $ | 3,491.5 |  |  | $ | 3,643.5 |  |  | $ | 10,328.5 |  |  | $ | 10,787.6 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
| (In millions)
Segment Income (Loss) (1): |  |  |  |  |  |  |
Franchised Dealerships Segment (2) | $ | 51.6 |  |  | $ | 101.5 |  |  | $ | 168.0 |  |  | $ | 357.2 |
EchoPark Segment (3) | 5.2 |  |  | (16.9) |  |  | 6.1 |  |  | (116.5) |
Powersports Segment | 4.0 |  |  | 6.6 |  |  | 2.3 |  |  | 9.2 |
Total segment income | $ | 60.8 |  |  | $ | 91.2 |  |  | $ | 176.4 |  |  | $ | 249.9 |
Impairment charges (4) | — |  |  | — |  |  | (2.4) |  |  | (62.6) |
Income before taxes | $ | 60.8 |  |  | $ | 91.2 |  |  | $ | 174.0 |  |  | $ | 187.3 |
(1)Segment income (loss) for each segment is defined as income (loss) before taxes and impairment charges. (2)For the three months ended September 30, 2024, amount includes approximately $1.8 million of pre-tax charges related to excess compensation related to the CDK outage and approximately $1.5 million of pre-tax charges related to storm damage. For the nine months ended September 30, 2024, amount includes approximately $13.0 million of pre-tax charges related to excess compensation related to the CDK outage, approximately $5.1 million of pre-tax charges related to storm damage, approximately $2.2 million of pre-tax charges related to severance and long-term compensation expense, and approximately $1.0 million of pre-tax impairment charges related to property and equipment. For the nine months ended September 30, 2023, amount includes approximately $20.9 million of pre-tax gain related to acquisitions and dispositions and approximately $1.9 million of pre-tax charges related to storm damage. (3)For the three months ended September 30, 2024, amount includes approximately $2.3 million of pre-tax gain on dispositions of real estate. For the three months ended September 30, 2023, amount includes approximately $0.9 million of pre-tax charges for long-term compensation expense and approximately $3.9 million related to pre-tax lease exit charges. For the nine months ended September 30, 2024, amount includes approximately $3.0 million of pre-tax gain on exit of leased properties, approximately $2.9 million of pre-tax charges for severance and long-term compensation expense, approximately $2.1 million of pre-tax charges related to closed store accrued expenses related to the indefinite suspension of operations at certain EchoPark locations, approximately $1.4 million of pre-tax impairment charges related to property and equipment, approximately $2.9 million of pre-tax gain on acquisitions and dispositions, and approximately $0.4 million of pre-tax charges related to excess compensation related to the CDK outage. For the nine months ended September 30, 2023, amount includes approximately $62.6 million of pre-tax impairment charges related to fixed assets, lease right-of-use assets, and other contractual obligations related to abandoned property, approximately $10.0 million of pre-tax charges related to used vehicle inventory valuation adjustments, approximately $5.1 million of pre-tax charges for long-term compensation expense, approximately $4.3 million of pre-tax lease exit charges and approximately $0.3 million of pre-tax loss related to acquisitions and dispositions. (4)For the nine months ended September 30, 2024, amount includes approximately $1.4 million of pre-tax property and equipment charges for real estate held for sale in the EchoPark Segment and approximately $1.0 million of pre-tax property and equipment charges for the Franchised Dealerships Segment. For the nine months ended September 30, 2023, amount includes approximately $62.6 million of pre-tax impairment charges related to fixed assets, lease right-of-use assets, and other contractual obligations related to abandoned property for the EchoPark Segment.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
| (In millions)
Segment Impairment Charges: |  |  |  |  |  |  |
Franchised Dealerships Segment | $ | — |  |  | $ | — |  |  | $ | 1.0 |  |  | $ | — |
EchoPark Segment | — |  |  | — |  |  | 1.4 |  |  | 62.6 |
Powersports Segment | — |  |  | — |  |  | — |  |  | — |
Total impairment charges | $ | — |  |  | $ | — |  |  | $ | 2.4 |  |  | $ | 62.6 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
| (In millions)
Segment Depreciation and Amortization: |  |  |  |  |  |  |
Franchised Dealerships Segment | $ | 31.5 |  |  | $ | 28.2 |  |  | $ | 91.6 |  |  | $ | 82.8 |
EchoPark Segment | 5.4 |  |  | 6.1 |  |  | 16.4 |  |  | 20.4 |
Powersports Segment | 1.1 |  |  | 0.9 |  |  | 3.1 |  |  | 2.5 |
Total depreciation and amortization | $ | 37.9 |  |  | $ | 35.2 |  |  | $ | 111.1 |  |  | $ | 105.7 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
| (In millions)
Segment Floor Plan Interest Expense: |  |  |  |  |  |  |
Franchised Dealerships Segment | $ | 18.7 |  |  | $ | 12.9 |  |  | $ | 52.5 |  |  | $ | 34.7 |
EchoPark Segment | 3.7 |  |  | 4.3 |  |  | 11.3 |  |  | 13.6 |
Powersports Segment | 0.7 |  |  | 0.2 |  |  | 1.6 |  |  | 0.6 |
Total floor plan interest expense | $ | 23.0 |  |  | $ | 17.4 |  |  | $ | 65.4 |  |  | $ | 48.9 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
| (In millions)
Segment Interest Expense, Other, Net: |  |  |  |  |  |  |
Franchised Dealerships Segment | $ | 28.5 |  |  | $ | 27.9 |  |  | $ | 84.1 |  |  | $ | 82.2 |
EchoPark Segment | 0.7 |  |  | 0.7 |  |  | 2.0 |  |  | 2.5 |
Powersports Segment | 0.6 |  |  | 0.4 |  |  | 1.9 |  |  | 1.5 |
Total interest expense, other, net | $ | 29.8 |  |  | $ | 29.0 |  |  | $ | 88.1 |  |  | $ | 86.2 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
| (In millions)
Segment Capital Expenditures: |  |  |  |  |  |  |
Franchised Dealerships Segment | $ | 50.3 |  |  | $ | 72.1 |  |  | $ | 141.4 |  |  | $ | 137.3 |
EchoPark Segment | 0.2 |  |  | 5.4 |  |  | 0.8 |  |  | 14.1 |
Powersports Segment | 2.8 |  |  | 0.6 |  |  | 3.7 |  |  | 2.2 |
Total capital expenditures | $ | 53.3 |  |  | $ | 78.1 |  |  | $ | 145.9 |  |  | $ | 153.6 |
| September 30, 2024 |  | December 31, 2023 |  |  |  |
| (In millions) |  |  |  |
Segment Assets: |  |  |  |  |  |  |
Franchised Dealerships Segment | $ | 4,550.3 |  |  | $ | 4,110.8 |  |  |  |  |
EchoPark Segment | 567.4 |  |  | 667.9 |  |  |  |  |
Powersports Segment | 222.9 |  |  | 212.0 |  |  |  |  |
Corporate and other: |  |  |  |  |  |  |
Cash and cash equivalents | 17.6 |  |  | 28.9 |  |  |  |  |
Floor plan deposit balance | 400.0 |  |  | 345.0 |  |  |  |  |
Total assets | $ | 5,758.2 |  |  | $ | 5,364.6 |  |  |  |  |

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-25 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-30 + Details
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