Sonic Automotive Reports Third Quarter 2019 EPS of $0.66, Up 83%

Sonic Automotive, Inc. (NYSE: SAH), one of the nation’s largest automotive retailers, today reported financial results for the third quarter of 2019.

• EchoPark revenues of $312.2 million during the third quarter of 2019, up 67.9% from the third quarter of 2018.
• EchoPark pre-tax profit improved $7.6 million, or 138.9%, to $2.1 million in the third quarter of 2019, compared to a pre-tax loss of $5.5 million in the third quarter of 2018.
• EchoPark generated Adjusted EBITDA* of $6.4 million in the third quarter of 2019, improving by $9.4 million from the third quarter of 2018.
• EchoPark retailed 13,206 pre-owned units during the third quarter of 2019, up 71.6% from the third quarter of 2018.
• Total Sonic consolidated continuing operations earnings per diluted share of $0.66 in the third quarter of 2019, compared to $0.36 in the third quarter of 2018, an 83.3% increase from the third quarter of 2018.
• Total Sonic consolidated all-time quarterly record pre-owned retail unit sales of 42,453 units in the third quarter of 2019.
• Total Sonic same store Fixed Operations gross profit increased $11.4 million in the third quarter of 2019, up 7.3% from the third quarter of 2018.
• Total Sonic consolidated all-time quarterly record F&I gross profit per retail unit of $1,771 in the third quarter of 2019, an increase of $266 per unit from the third quarter of 2018.
• Total Sonic consolidated all-time quarterly record F&I gross profit of $126.8 million in the third quarter of 2019, an increase of 29.3% from the third quarter of 2018.
• SG&A to gross profit ratio of 76.7% in the third quarter of 2019, an improvement of 350 basis points compared to the third quarter of 2018.

* Adjusted EBITDA is a non-GAAP financial measure. The schedules included in this press release reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure.

Third Quarter 2019 Results

Net income from continuing operations for the third quarter of 2019 was $29.2 million, or $0.66 per diluted share. Comparatively, net income from continuing operations for the third quarter of 2018 was $15.3 million, or $0.36 per diluted share. Results reported for the third quarter of 2018 include pre-tax charges totaling $3.1 million related to storm damage, executive transition costs and charges related to the disposal of franchises.

Commentary

David Smith, Sonic’s and EchoPark’s Chief Executive Officer, commented, “Our franchised stores and our EchoPark stores grew pre-tax income in the double and triple digits, respectively. The franchised stores segment increased pre-tax income in the third quarter of 2019 over the prior year quarter by $10.3 million, or 36.8%, while the EchoPark segment increased pre-tax income in the third quarter of 2019 over the prior year quarter by $7.6 million, or 138.9%.”

Mr. Smith continued, “Our operations teams delivered yet another outstanding quarter that resulted in an 83% improvement in earnings per diluted share from continuing operations compared to the third quarter of 2018. Our teams delivered a solid combination of gross profit growth and cost control. Consolidated gross profit grew 7.3% while our SG&A to gross profit ratio improved by 350 basis points. These results were achieved in spite of a challenging new vehicle sales environment where our new vehicle unit sales and related gross profit decreased by 2.8% and $6.3 million, respectively. Our pre-owned, Fixed Operations and F&I results during the quarter exceeded our expectations. We believe these favorable operating trends will continue into the fourth quarter.”

Jeff Dyke, Sonic’s and EchoPark’s President, commented, “Our EchoPark stores had another exceptional quarter. EchoPark grew revenues by 67.9%, gross profit by 107.2% and pre-tax income by 138.9%. As we continue to grow our top-line revenues, a greater amount of incremental gross profit flows through to the bottom line, demonstrating the significant earnings upside potential in this business over the long term. Our path to opening our next EchoPark market in Long Beach, California is becoming clearer and we anticipate an opening in the latter half of the fourth quarter of this year. We are excited to introduce the EchoPark brand to the California market and look forward to continuing to execute on our plans for EchoPark growth, omni-channel selling and other digital initiatives.”

Dividend

Sonic’s Board of Directors approved a quarterly cash dividend of $0.10 per share payable on January 15, 2020 to all stockholders of record on December 13, 2019.

Third Quarter 2019 Earnings Conference Call

Senior management will host a conference call today at 11:00 A.M. (Eastern) to discuss the quarter’s results. To access the live broadcast of the call over the Internet go to: www.sonicautomotive.com, then click on “Our Company,” then “Investor Relations,” then the “Earnings Conference Calls” link at the bottom of the page.

Presentation materials for the conference call will be accessible beginning the morning of the conference call on the Company’s website at www.sonicautomotive.com by clicking on the “Investor Relations” tab under “Our Company” and choosing the “Webcasts & Presentations” link at the bottom of the page.

The conference call will also be available live by dialing in 10 minutes prior to the start of the call at:

Domestic: [phone]
International: [phone]
Conference ID: 5598838

A conference call replay will be available one hour following the call for seven days and can be accessed by calling:

Domestic: [phone]
International: [phone]
Conference ID: 5598838

About Sonic Automotive

Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, N.C., is one of the nation’s largest automotive retailers. Sonic can be reached on the web at www.sonicautomotive.com. More information about EchoPark Automotive can be found at www.echopark.com.

Forward-Looking Statements

Included herein are forward-looking statements. 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, EchoPark revenue estimates, EchoPark unit sales volume, EchoPark profit estimates, economic conditions in the markets in which we operate, new and used vehicle industry sales volume, the success of our operational strategies, the rate and timing of overall economic recovery or decline, and the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and the Company’s other periodic reports and information filed with the 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.

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 EBITDA. As required by SEC rules, the Company provides reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures. 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
	Three Months Ended September 30,						Better / (Worse)			Nine Months Ended September 30,						Better / (Worse)
	2019			2018			% Change			2019			2018			% Change
	(In thousands, except per share amounts)
Revenues:
New vehicles	$	1,258,018		$	1,235,094		1.9	%		$	3,529,106		$	3,654,510		(3.4)	%
Used vehicles	914,272			745,998			22.6	%		2,620,264			2,217,616			18.2	%
Wholesale vehicles	51,542			48,578			6.1	%		156,351			167,726			(6.8)	%
Total vehicles	2,223,832			2,029,670			9.6	%		6,305,721			6,039,852			4.4	%
Parts, service and collision repair	352,047			343,118			2.6	%		1,048,789			1,041,630			0.7	%
Finance, insurance and other, net	126,841			98,061			29.3	%		351,429			295,890			18.8	%
Total revenues	2,702,720			2,470,849			9.4	%		7,705,939			7,377,372			4.5	%
Cost of Sales:
New vehicles	(1,202,710)			(1,173,453)			2.5	%		(3,363,603)			(3,478,802)			(3.3)	%
Used vehicles	(877,444)			(710,681)			23.5	%		(2,509,699)			(2,108,219)			19.0	%
Wholesale vehicles	(52,648)			(49,877)			5.6	%		(159,437)			(176,806)			(9.8)	%
Total vehicles	(2,132,802)			(1,934,011)			10.3	%		(6,032,739)			(5,763,827)			4.7	%
Parts, service and collision repair	(183,107)			(176,302)			3.9	%		(546,067)			(538,135)			1.5	%
Total cost of sales	(2,315,909)			(2,110,313)			9.7	%		(6,578,806)			(6,301,962)			4.4	%
Gross profit	386,811			360,536			7.3	%		1,127,133			1,075,410			4.8	%
Selling, general and administrative expenses	(296,826)			(289,022)			(2.7)	%		(838,453)			(871,410)			3.8	%
Impairment charges	(1,124)			—			(100.0)	%		(3,076)			(13,961)			78.0	%
Depreciation and amortization	(23,665)			(23,377)			(1.2)	%		(70,120)			(71,067)			1.3	%
Operating income (loss)	65,196			48,137			35.4	%		215,484			118,972			81.1	%
Other income (expense):
Interest expense, floor plan	(11,638)			(12,192)			4.5	%		(37,382)			(34,815)			(7.4)	%
Interest expense, other, net	(13,013)			(13,313)			2.3	%		(39,494)			(40,144)			1.6	%
Other income (expense), net	(5)			—			(100.0)	%		90			107			15.9	%
Total other income (expense)	(24,656)			(25,505)			3.3	%		(76,786)			(74,852)			(2.6)	%
Income (loss) from continuing operations before taxes	40,540			22,632			79.1	%		138,698			44,120			214.4	%
Provision for income taxes for continuing operations - benefit (expense)	(11,372)			(7,331)			(55.1)	%		(40,430)			(13,711)			(194.9)	%
Income (loss) from continuing operations	29,168			15,301			90.6	%		98,268			30,409			223.2	%
Discontinued operations:
Income (loss) from discontinued operations before taxes	(223)			(252)			11.5	%		(616)			(797)			22.7	%
Provision for income taxes for discontinued operations - benefit (expense)	65			69			(5.8)	%		179			218			(17.9)	%
Income (loss) from discontinued operations	(158)			(183)			13.7	%		(437)			(579)			24.5	%
Net income (loss)	$	29,010		$	15,118		91.9	%		$	97,831		$	29,830		228.0	%
Basic earnings (loss) per common share:
Earnings (loss) per share from continuing operations	$	0.68		$	0.36		88.9	%		$	2.28		$	0.71		221.1	%
Earnings (loss) per share from discontinued operations	(0.01)			(0.01)			—	%		(0.01)			(0.01)			—	%
Earnings (loss) per common share	$	0.67		$	0.35		91.4	%		$	2.27		$	0.70		224.3	%
Weighted-average common shares outstanding	43,078			42,673			(0.9)	%		42,995			42,708			(0.7)	%
Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations	$	0.66		$	0.36		83.3	%		$	2.26		$	0.71		218.3	%
Earnings (loss) per share from discontinued operations	—			(0.01)			100.0	%		(0.01)			(0.02)			50.0	%
Earnings (loss) per common share	$	0.66		$	0.35		88.6	%		$	2.25		$	0.69		226.1	%
Weighted-average common shares outstanding	44,203			42,994			(2.8)	%		43,456			42,964			(1.1)	%
Dividends declared per common share	$	0.10		$	0.06		66.7	%		$	0.30		$	0.18		66.7	%

New Vehicles - Consolidated
	Three Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Reported new vehicle:
Revenue	$	1,258,018			$	1,235,094			$	22,924		1.9	%
Gross profit	$	55,308			$	61,641			$	(6,333)		(10.3)	%
Unit sales	30,147				31,009				(862)			(2.8)	%
Revenue per unit	$	41,729			$	39,830			$	1,899		4.8	%
Gross profit per unit	$	1,835			$	1,988			$	(153)		(7.7)	%
Gross profit as a % of revenue	4.4%				5.0%				(60)			bps
	Nine Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Reported new vehicle:
Revenue	$	3,529,106			$	3,654,510			$	(125,404)		(3.4)	%
Gross profit	$	165,503			$	175,708			$	(10,205)		(5.8)	%
Unit sales	83,540				91,386				(7,846)			(8.6)	%
Revenue per unit	$	42,245			$	39,990			$	2,255		5.6	%
Gross profit per unit	$	1,981			$	1,923			$	58		3.0	%
Gross profit as a % of revenue	4.7%				4.8%				(10)			bps
	Three Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Same store new vehicle:
Revenue	$	1,253,233			$	1,174,705			$	78,528		6.7	%
Gross profit	$	54,823			$	58,425			$	(3,602)		(6.2)	%
Unit sales	30,046				29,139				907			3.1	%
Revenue per unit	$	41,710			$	40,314			$	1,396		3.5	%
Gross profit per unit	$	1,825			$	2,005			$	(180)		(9.0)	%
Gross profit as a % of revenue	4.4%				5.0%				(60)			bps
	Nine Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Same store new vehicle:
Revenue	$	3,487,153			$	3,429,897			$	57,256		1.7	%
Gross profit	$	163,128			$	167,188			$	(4,060)		(2.4)	%
Unit sales	82,301				84,352				(2,051)			(2.4)	%
Revenue per unit	$	42,371			$	40,662			$	1,709		4.2	%
Gross profit per unit	$	1,982			$	1,982			$	—		—	%
Gross profit as a % of revenue	4.7%				4.9%				(20)			bps

Used Vehicles - Consolidated
	Three Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Reported used vehicle:
Revenue	$	914,272			$	745,998			$	168,274		22.6	%
Gross profit	$	36,828			$	35,317			$	1,511		4.3	%
Unit sales	42,453				34,952				7,501			21.5	%
Revenue per unit	$	21,536			$	21,343			$	193		0.9	%
Gross profit per unit	$	868			$	1,010			$	(142)		(14.1)	%
Gross profit as a % of revenue	4.0%				4.7%				(70)			bps
	Nine Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Reported used vehicle:
Revenue	$	2,620,264			$	2,217,616			$	402,648		18.2	%
Gross profit	$	110,565			$	109,397			$	1,168		1.1	%
Unit sales	122,374				104,470				17,904			17.1	%
Revenue per unit	$	21,412			$	21,227			$	185		0.9	%
Gross profit per unit	$	904			$	1,047			$	(143)		(13.7)	%
Gross profit as a % of revenue	4.2%				4.9%				(70)			bps
	Three Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Same store used vehicle:
Revenue	$	855,900			$	713,677			$	142,223		19.9	%
Gross profit	$	33,764			$	33,088			$	676		2.0	%
Unit sales	39,521				33,128				6,393			19.3	%
Revenue per unit	$	21,657			$	21,543			$	114		0.5	%
Gross profit per unit	$	854			$	999			$	(145)		(14.5)	%
Gross profit as a % of revenue	3.9%				4.6%				(70)			bps
	Nine Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Same store used vehicle:
Revenue	$	2,440,633			$	2,102,425			$	338,208		16.1	%
Gross profit	$	101,638			$	100,248			$	1,390		1.4	%
Unit sales	113,224				98,028				15,196			15.5	%
Revenue per unit	$	21,556			$	21,447			$	109		0.5	%
Gross profit per unit	$	898			$	1,023			$	(125)		(12.2)	%
Gross profit as a % of revenue	4.2%				4.8%				(60)			bps

Wholesale Vehicles - Consolidated
	Three Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Reported wholesale vehicle:
Revenue	$	51,542			$	48,578			$	2,964		6.1	%
Gross profit (loss)	$	(1,106)			$	(1,299)			$	193		14.9	%
Unit sales	8,961				7,831				1,130			14.4	%
Revenue per unit	$	5,752			$	6,203			$	(451)		(7.3)	%
Gross profit (loss) per unit	$	(123)			$	(166)			$	43		25.9	%
Gross profit (loss) as a % of revenue	(2.1)%				(2.7)%				60			bps
	Nine Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Reported wholesale vehicle:
Revenue	$	156,351			$	167,726			$	(11,375)		(6.8)	%
Gross profit (loss)	$	(3,086)			$	(9,080)			$	5,994		66.0	%
Unit sales	26,254				25,953				301			1.2	%
Revenue per unit	$	5,955			$	6,463			$	(508)		(7.9)	%
Gross profit (loss) per unit	$	(118)			$	(350)			$	232		66.3	%
Gross profit (loss) as a % of revenue	(2.0)%				(5.4)%				340			bps
	Three Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Same store wholesale vehicle:
Revenue	$	49,791			$	45,144			$	4,647		10.3	%
Gross profit (loss)	$	(1,009)			$	(1,324)			$	315		23.8	%
Unit sales	8,559				7,173				1,386			19.3	%
Revenue per unit	$	5,817			$	6,294			$	(477)		(7.6)	%
Gross profit (loss) per unit	$	(118)			$	(185)			$	67		36.2	%
Gross profit (loss) as a % of revenue	(2.0)%				(2.9)%				90			bps
	Nine Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Same store wholesale vehicle:
Revenue	$	150,890			$	152,934			$	(2,044)		(1.3)	%
Gross profit (loss)	$	(2,746)			$	(8,224)			$	5,478		66.6	%
Unit sales	25,081				23,367				1,714			7.3	%
Revenue per unit	$	6,016			$	6,545			$	(529)		(8.1)	%
Gross profit (loss) per unit	$	(109)			$	(352)			$	243		69.0	%
Gross profit (loss) as a % of revenue	(1.8)%				(5.4)%				360			bps

Fixed Operations - Consolidated
	Three Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands)
Reported:
Revenue
Customer pay	$	140,146			$	139,642			$	504		0.4	%
Warranty	69,894				66,730				3,164			4.7	%
Wholesale parts	38,345				39,419				(1,074)			(2.7)	%
Internal, sublet and other	103,662				97,327				6,335			6.5	%
Total	$	352,047			$	343,118			$	8,929		2.6	%
Gross profit
Customer pay	$	76,625			$	74,994			$	1,631		2.2	%
Warranty	38,235				38,563				(328)			(0.9)	%
Wholesale parts	6,651				6,784				(133)			(2.0)	%
Internal, sublet and other	47,429				46,475				954			2.1	%
Total	$	168,940			$	166,816			$	2,124		1.3	%
Gross profit as a % of revenue
Customer pay	54.7%				53.7%				100		bps
Warranty	54.7%				57.8%				(310)		bps
Wholesale parts	17.3%				17.2%				10		bps
Internal, sublet and other	45.8%				47.8%				(200)		bps
Total	48.0%				48.6%				(60)		bps
	Nine Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands)
Reported:
Revenue
Customer pay	$	419,980			$	422,348			$	(2,368)		(0.6)	%
Warranty	208,676				198,219				10,457			5.3	%
Wholesale parts	117,669				122,763				(5,094)			(4.1)	%
Internal, sublet and other	302,464				298,300				4,164			1.4	%
Total	$	1,048,789			$	1,041,630			$	7,159		0.7	%
Gross profit
Customer pay	$	228,604			$	226,443			$	2,161		1.0	%
Warranty	115,682				112,335				3,347			3.0	%
Wholesale parts	20,319				20,949				(630)			(3.0)	%
Internal, sublet and other	138,117				143,768				(5,651)			(3.9)	%
Total	$	502,722			$	503,495			$	(773)		(0.2)	%
Gross profit as a % of revenue
Customer pay	54.4%				53.6%				80		bps
Warranty	55.4%				56.7%				(130)		bps
Wholesale parts	17.3%				17.1%				20		bps
Internal, sublet and other	45.7%				48.2%				(250)		bps
Total	47.9%				48.3%				(40)		bps

Fixed Operations - Consolidated
	Three Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands)
Same Store:
Revenue
Customer pay	$	139,807			$	131,535			$	8,272		6.3	%
Warranty	69,438				64,048				5,390			8.4	%
Wholesale parts	38,018				38,016				2			—	%
Internal, sublet and other	101,610				92,849				8,761			9.4	%
Total	$	348,873			$	326,448			$	22,425		6.9	%
Gross profit
Customer pay	$	76,453			$	70,227			$	6,226		8.9	%
Warranty	37,982				35,569				2,413			6.8	%
Wholesale parts	6,594				6,468				126			1.9	%
Internal, sublet and other	47,061				44,410				2,651			6.0	%
Total	$	168,090			$	156,674			$	11,416		7.3	%
Gross profit as a % of revenue
Customer pay	54.7%				53.4%				130		bps
Warranty	54.7%				55.5%				(80)		bps
Wholesale parts	17.3%				17.0%				30		bps
Internal, sublet and other	46.3%				47.8%				(150)		bps
Total	48.2%				48.0%				20		bps
	Nine Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands)
Same Store:
Revenue
Customer pay	$	414,704			$	393,934			$	20,770		5.3	%
Warranty	206,691				190,080				16,611			8.7	%
Wholesale parts	116,148				116,866				(718)			(0.6)	%
Internal, sublet and other	294,735				281,068				13,667			4.9	%
Total	$	1,032,278			$	981,948			$	50,330		5.1	%
Gross profit
Customer pay	$	225,671			$	210,013			$	15,658		7.5	%
Warranty	114,596				106,074				8,522			8.0	%
Wholesale parts	20,019				19,770				249			1.3	%
Internal, sublet and other	135,472				134,944				528			0.4	%
Total	$	495,758			$	470,801			$	24,957		5.3	%
Gross profit as a % of revenue
Customer pay	54.4%				53.3%				110		bps
Warranty	55.4%				55.8%				(40)		bps
Wholesale parts	17.2%				16.9%				30		bps
Internal, sublet and other	46.0%				48.0%				(200)		bps
Total	48.0%				47.9%				10		bps

F&I - Consolidated
	Three Months Ended September 30,						Better / (Worse)
	2019			2018			Change			% Change
	(In thousands, except unit and per unit data)
Reported:
Revenue	$	126,841		$	98,061		$	28,780		29.3	%
Unit sales	71,636			65,168			6,468			9.9	%
Gross profit per retail unit (excludes fleet)	$	1,771		$	1,505		$	266		17.7	%
	Nine Months Ended September 30,						Better / (Worse)
	2019			2018			Change			% Change
	(In thousands, except unit and per unit data)
Reported:
Revenue	$	351,429		$	295,890		$	55,539		18.8	%
Unit sales	204,230			194,322			9,908			5.1	%
Gross profit per retail unit (excludes fleet)	$	1,721		$	1,523		$	198		13.0	%
	Three Months Ended September 30,						Better / (Worse)
	2019			2018			Change			% Change
	(In thousands, except unit and per unit data)
Same Store:
Revenue	$	116,881		$	92,376		$	24,505		26.5	%
Unit sales	68,603			61,474			7,129			11.6	%
Gross profit per retail unit (excludes fleet)	$	1,704		$	1,503		$	201		13.4	%
	Nine Months Ended September 30,						Better / (Worse)
	2019			2018			Change			% Change
	(In thousands, except unit and per unit data)
Same Store:
Revenue	$	322,130		$	272,688		$	49,442		18.1	%
Unit sales	193,841			180,891			12,950			7.2	%
Gross profit per retail unit (excludes fleet)	$	1,662		$	1,507		$	155		10.3	%

New Vehicles - Franchised Dealership Segment
	Three Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Reported new vehicle:
Revenue	$	1,258,018			$	1,235,094			$	22,924		1.9	%
Gross profit	$	55,308			$	61,641			$	(6,333)		(10.3)	%
Unit sales	30,147				31,009				(862)			(2.8)	%
Revenue per unit	$	41,729			$	39,830			$	1,899		4.8	%
Gross profit per unit	$	1,835			$	1,988			$	(153)		(7.7)	%
Gross profit as a % of revenue	4.4%				5.0%				(60)			bps
	Nine Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Reported new vehicle:
Revenue	$	3,529,106			$	3,654,510			$	(125,404)		(3.4)	%
Gross profit	$	165,503			$	175,708			$	(10,205)		(5.8)	%
Unit sales	83,540				91,386				(7,846)			(8.6)	%
Revenue per unit	$	42,245			$	39,990			$	2,255		5.6	%
Gross profit per unit	$	1,981			$	1,923			$	58		3.0	%
Gross profit as a % of revenue	4.7%				4.8%				(10)			bps
	Three Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Same store new vehicle:
Revenue	$	1,253,233			$	1,174,705			$	78,528		6.7	%
Gross profit	$	54,823			$	58,425			$	(3,602)		(6.2)	%
Unit sales	30,046				29,139				907			3.1	%
Revenue per unit	$	41,710			$	40,314			$	1,396		3.5	%
Gross profit per unit	$	1,825			$	2,005			$	(180)		(9.0)	%
Gross profit as a % of revenue	4.4%				5.0%				(60)			bps
	Nine Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Same store new vehicle:
Revenue	$	3,487,153			$	3,429,897			$	57,256		1.7	%
Gross profit	$	163,128			$	167,188			$	(4,060)		(2.4)	%
Unit sales	82,301				84,352				(2,051)			(2.4)	%
Revenue per unit	$	42,371			$	40,662			$	1,709		4.2	%
Gross profit per unit	$	1,982			$	1,982			$	—		—	%
Gross profit as a % of revenue	4.7%				4.9%				(20)			bps

Used Vehicles - Franchised Dealership Segment
	Three Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Reported used vehicle:
Revenue	$	648,006			$	585,300			$	62,706		10.7	%
Gross profit	$	37,623			$	37,480			$	143		0.4	%
Unit sales	29,247				27,254				1,993			7.3	%
Revenue per unit	$	22,156			$	21,476			$	680		3.2	%
Gross profit per unit	$	1,286			$	1,375			$	(89)		(6.5)	%
Gross profit as a % of revenue	5.8%				6.4%				(60)			bps
	Nine Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Reported used vehicle:
Revenue	$	1,889,045			$	1,794,403			$	94,642		5.3	%
Gross profit	$	111,815			$	112,965			$	(1,150)		(1.0)	%
Unit sales	85,530				83,795				1,735			2.1	%
Revenue per unit	$	22,086			$	21,414			$	672		3.1	%
Gross profit per unit	$	1,307			$	1,348			$	(41)		(3.0)	%
Gross profit as a % of revenue	5.9%				6.3%				(40)			bps
	Three Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Same store used vehicle:
Revenue	$	643,945			$	564,190			$	79,755		14.1	%
Gross profit	$	35,873			$	34,665			$	1,208		3.5	%
Unit sales	29,050				26,067				2,983			11.4	%
Revenue per unit	$	22,167			$	21,644			$	523		2.4	%
Gross profit per unit	$	1,235			$	1,330			$	(95)		(7.1)	%
Gross profit as a % of revenue	5.6%				6.1%				(50)			bps
	Nine Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Same store used vehicle:
Revenue	$	1,866,976			$	1,713,247			$	153,729		9.0	%
Gross profit	$	105,904			$	102,760			$	3,144		3.1	%
Unit sales	84,374				79,173				5,201			6.6	%
Revenue per unit	$	22,127			$	21,639			$	488		2.3	%
Gross profit per unit	$	1,255			$	1,298			$	(43)		(3.3)	%
Gross profit as a % of revenue	5.7%				6.0%				(30)			bps

Wholesale Vehicles - Franchised Dealership Segment
	Three Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Reported wholesale vehicle:
Revenue	$	44,517			$	43,381			$	1,136		2.6	%
Gross profit (loss)	$	(971)			$	(1,260)			$	289		22.9	%
Unit sales	7,123				6,906				217			3.1	%
Revenue per unit	$	6,250			$	6,282			$	(32)		(0.5)	%
Gross profit (loss) per unit	$	(136)			$	(182)			$	46		25.3	%
Gross profit (loss) as a % of revenue	(2.2)%				(2.9)%				70			bps
	Nine Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Reported wholesale vehicle:
Revenue	$	140,770			$	148,037			$	(7,267)		(4.9)	%
Gross profit (loss)	$	(2,845)			$	(9,708)			$	6,863		70.7	%
Unit sales	22,231				22,454				(223)			(1.0)	%
Revenue per unit	$	6,332			$	6,593			$	(261)		(4.0)	%
Gross profit (loss) per unit	$	(128)			$	(432)			$	304		70.4	%
Gross profit (loss) as a % of revenue	(2.0)%				(6.6)%				460			bps
	Three Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Same store wholesale vehicle:
Revenue	$	44,219			$	41,526			$	2,693		6.5	%
Gross profit (loss)	$	(890)			$	(1,239)			$	349		28.2	%
Unit sales	7,088				6,553				535			8.2	%
Revenue per unit	$	6,239			$	6,337			$	(98)		(1.5)	%
Gross profit (loss) per unit	$	(126)			$	(189)			$	63		33.3	%
Gross profit (loss) as a % of revenue	(2.0)%				(3.0)%				100			bps
	Nine Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Same store wholesale vehicle:
Revenue	$	138,614			$	137,838			$	776		0.6	%
Gross profit (loss)	$	(2,531)			$	(8,849)			$	6,318		71.4	%
Unit sales	21,901				20,758				1,143			5.5	%
Revenue per unit	$	6,329			$	6,640			$	(311)		(4.7)	%
Gross profit (loss) per unit	$	(116)			$	(426)			$	310		72.8	%
Gross profit (loss) as a % of revenue	(1.8)%				(6.4)%				460			bps

Fixed Operations - Franchised Dealership Segment
	Three Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands)
Reported:
Revenue
Customer pay	$	139,969			$	139,504			$	465		0.3	%
Warranty	69,894				66,730				3,164			4.7	%
Wholesale parts	38,345				39,419				(1,074)			(2.7)	%
Internal, sublet and other	95,612				93,413				2,199			2.4	%
Total	$	343,820			$	339,066			$	4,754		1.4	%
Gross profit
Customer pay	$	76,607			$	74,983			$	1,624		2.2	%
Warranty	38,235				38,563				(328)			(0.9)	%
Wholesale parts	6,651				6,784				(133)			(2.0)	%
Internal, sublet and other	47,665				45,995				1,670			3.6	%
Total	$	169,158			$	166,325			$	2,833		1.7	%
Gross profit as a % of revenue
Customer pay	54.7%				53.7%				100		bps
Warranty	54.7%				57.8%				(310)		bps
Wholesale parts	17.3%				17.2%				10		bps
Internal, sublet and other	49.9%				49.2%				70		bps
Total	49.2%				49.1%				10		bps
	Nine Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands)
Reported:
Revenue
Customer pay	$	419,482			$	421,484			$	(2,002)		(0.5)	%
Warranty	208,676				198,219				10,457			5.3	%
Wholesale parts	117,669				122,763				(5,094)			(4.1)	%
Internal, sublet and other	281,555				285,893				(4,338)			(1.5)	%
Total	$	1,027,382			$	1,028,359			$	(977)		(0.1)	%
Gross profit
Customer pay	$	228,584			$	226,207			$	2,377		1.1	%
Warranty	115,682				112,335				3,347			3.0	%
Wholesale parts	20,319				20,949				(630)			(3.0)	%
Internal, sublet and other	138,726				141,618				(2,892)			(2.0)	%
Total	$	503,311			$	501,109			$	2,202		0.4	%
Gross profit as a % of revenue
Customer pay	54.5%				53.7%				80		bps
Warranty	55.4%				56.7%				(130)		bps
Wholesale parts	17.3%				17.1%				20		bps
Internal, sublet and other	49.3%				49.5%				(20)		bps
Total	49.0%				48.7%				30		bps

Fixed Operations - Franchised Dealership Segment
	Three Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands)
Same Store:
Revenue
Customer pay	$	139,683			$	131,413			$	8,270		6.3	%
Warranty	69,438				64,048				5,390			8.4	%
Wholesale parts	38,018				38,016				2			—	%
Internal, sublet and other	95,170				89,303				5,867			6.6	%
	$	342,309			$	322,780			$	19,529		6.1	%
Gross profit
Customer pay	$	76,435			$	70,218			$	6,217		8.9	%
Warranty	37,982				35,569				2,413			6.8	%
Wholesale parts	6,594				6,468				126			1.9	%
Internal, sublet and other	47,266				43,888				3,378			7.7	%
	$	168,277			$	156,143			$	12,134		7.8	%
Gross profit as a % of revenue
Customer pay	54.7%				53.4%				130		bps
Warranty	54.7%				55.5%				(80)		bps
Wholesale parts	17.3%				17.0%				30		bps
Internal, sublet and other	49.7%				49.1%				60		bps
	49.2%				48.4%				80		bps
	Nine Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands)
Same Store:
Revenue
Customer pay	$	414,369			$	393,478			$	20,891		5.3	%
Warranty	206,691				190,080				16,611			8.7	%
Wholesale parts	116,148				116,866				(718)			(0.6)	%
Internal, sublet and other	278,176				269,831				8,345			3.1	%
	$	1,015,384			$	970,255			$	45,129		4.7	%
Gross profit
Customer pay	$	225,651			$	209,936			$	15,715		7.5	%
Warranty	114,596				106,074				8,522			8.0	%
Wholesale parts	20,019				19,770				249			1.3	%
Internal, sublet and other	135,971				132,937				3,034			2.3	%
	$	496,237			$	468,717			$	27,520		5.9	%
Gross profit as a % of revenue
Customer pay	54.5%				53.4%				110		bps
Warranty	55.4%				55.8%				(40)		bps
Wholesale parts	17.2%				16.9%				30		bps
Internal, sublet and other	48.9%				49.3%				(40)		bps
	48.9%				48.3%				60		bps

F&I - Franchised Dealership Segment
	Three Months Ended September 30,						Better / (Worse)
	2019			2018			Change			% Change
	(In thousands, except unit and per unit data)
Reported:
Revenue	$	96,142		$	82,089		$	14,053		17.1	%
Unit sales	58,430			57,470			960			1.7	%
Gross profit per retail unit (excludes fleet)	$	1,645		$	1,428		$	217		15.2	%
	Nine Months Ended September 30,						Better / (Worse)
	2019			2018			Change			% Change
	(In thousands, except unit and per unit data)
Reported:
Revenue	$	266,171		$	254,473		$	11,698		4.6	%
Unit sales	167,386			173,647			(6,261)			(3.6)	%
Gross profit per retail unit (excludes fleet)	$	1,590		$	1,465		$	125		8.5	%
	Three Months Ended September 30,						Better / (Worse)
	2019			2018			Change			% Change
	(In thousands, except unit and per unit data)
Same Store:
Revenue	$	92,252		$	77,040		$	15,212		19.7	%
Unit sales	58,132			54,413			3,719			6.8	%
Gross profit per retail unit (excludes fleet)	$	1,587		$	1,416		$	171		12.1	%
	Nine Months Ended September 30,						Better / (Worse)
	2019			2018			Change			% Change
	(In thousands, except unit and per unit data)
Same Store:
Revenue	$	255,331		$	234,720		$	20,611		8.8	%
Unit sales	164,991			162,036			2,955			1.8	%
Gross profit per retail unit (excludes fleet)	$	1,548		$	1,449		$	99		6.8	%

Used Vehicles and F&I - EchoPark Segment
	Three Months Ended September 30,						Better / (Worse)
	2019			2018			Change			% Change
	(In thousands, except unit and per unit data)
Reported used vehicle and F&I:
Used vehicle revenue	$	266,266		$	160,698		$	105,568		65.7	%
Used vehicle gross profit (loss)	$	(795)		$	(2,163)		$	1,368		63.2	%
Used vehicle unit sales	13,206			7,698			5,508			71.6	%
Used vehicle revenue per unit	$	20,163		$	20,875		$	(712)		(3.4)	%
F&I revenue	$	30,699		$	15,972		$	14,727		92.2	%
Combined used vehicle gross profit and F&I revenue	$	29,904		$	13,809		$	16,095		116.6	%
Total used vehicle and F&I gross profit per unit	$	2,264		$	1,794		$	470		26.2	%
	Nine Months Ended September 30,						Better / (Worse)
	2019			2018			Change			% Change
	(In thousands, except unit and per unit data)
Reported used vehicle:
Used vehicle revenue	$	731,219		$	423,213		$	308,006		72.8	%
Used vehicle gross profit (loss)	$	(1,250)		$	(3,568)		$	2,318		65.0	%
Used vehicle unit sales	36,844			20,675			16,169			78.2	%
Used vehicle revenue per unit	$	19,846		$	20,470		$	(624)		(3.0)	%
F&I revenue	$	85,258		$	41,417		$	43,841		105.9	%
Combined used vehicle gross profit and F&I revenue	$	84,008		$	37,849		$	46,159		122.0	%
Total used vehicle and F&I gross profit per unit	$	2,280		$	1,831		$	449		24.5	%
	Three Months Ended September 30,						Better / (Worse)
	2019			2018			Change			% Change
	(In thousands, except unit and per unit data)
Same store used vehicle:
Used vehicle revenue	$	211,955		$	149,487		$	62,468		41.8	%
Used vehicle gross profit (loss)	$	(2,109)		$	(1,577)		$	(532)		(33.7)	%
Used vehicle unit sales	10,471			7,061			3,410			48.3	%
Used vehicle revenue per unit	$	20,242		$	21,171		$	(929)		(4.4)	%
F&I revenue	$	24,629		$	15,336		$	9,293		60.6	%
Combined used vehicle gross profit and F&I revenue	$	22,520		$	13,759		$	8,761		63.7	%
Total used vehicle and F&I gross profit per unit	$	2,151		$	1,949		$	202		10.4	%
	Nine Months Ended September 30,						Better / (Worse)
	2019			2018			Change			% Change
	(In thousands, except unit and per unit data)
Same store used vehicle:
Used vehicle revenue	$	573,657		$	389,178		$	184,479		47.4	%
Used vehicle gross profit (loss)	$	(4,266)		$	(2,512)		$	(1,754)		(69.8)	%
Used vehicle unit sales	28,850			18,855			9,995			53.0	%
Used vehicle revenue per unit	$	19,884		$	20,641		$	(757)		(3.7)	%
F&I revenue	$	66,799		$	37,968		$	28,831		75.9	%
Combined used vehicle gross profit and F&I revenue	$	62,533		$	35,456		$	27,077		76.4	%
Total used vehicle and F&I gross profit per unit	$	2,168		$	1,880		$	288		15.3	%

Wholesale Vehicles - EchoPark Segment
	Three Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Reported wholesale vehicle:
Revenue	$	7,025			$	5,197			$	1,828		35.2	%
Gross profit (loss)	$	(135)			$	(39)			$	(96)		(246.2)	%
Unit sales	1,838				925				913			98.7	%
Revenue per unit	$	3,822			$	5,618			$	(1,796)		(32.0)	%
Gross profit (loss) per unit	$	(73)			$	(42)			$	(31)		(73.8)	%
Gross profit (loss) as a % of revenue	(1.9)%				(0.8)%				(110)			bps
	Nine Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Reported wholesale vehicle:
Revenue	$	15,581			$	19,689			$	(4,108)		(20.9)	%
Gross profit (loss)	$	(241)			$	628			$	(869)		(138.4)	%
Unit sales	4,023				3,499				524			15.0	%
Revenue per unit	$	3,873			$	5,627			$	(1,754)		(31.2)	%
Gross profit (loss) per unit	$	(60)			$	179			$	(239)		(133.5)	%
Gross profit (loss) as a % of revenue	(1.5)%				3.2%				(470)			bps
	Three Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Same store wholesale vehicle:
Revenue	$	5,572			$	3,618			$	1,954		54.0	%
Gross profit (loss)	$	(119)			$	(85)			$	(34)		(40.0)	%
Unit sales	1,471				620				851			137.3	%
Revenue per unit	$	3,788			$	5,835			$	(2,047)		(35.1)	%
Gross profit (loss) per unit	$	(81)			$	(137)			$	56		40.9	%
Gross profit (loss) as a % of revenue	(2.1)%				(2.3)%				20			bps
	Nine Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands, except unit and per unit data)
Same store wholesale vehicle:
Revenue	$	12,277			$	15,095			$	(2,818)		(18.7)	%
Gross profit (loss)	$	(215)			$	625			$	(840)		(134.4)	%
Unit sales	3,180				2,609				571			21.9	%
Revenue per unit	$	3,861			$	5,786			$	(1,925)		(33.3)	%
Gross profit (loss) per unit	$	(68)			$	240			$	(308)		(128.3)	%
Gross profit (loss) as a % of revenue	(1.8)%				4.1%				(590)			bps

Fixed Operations - EchoPark Segment
	Three Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands)
Total reported Fixed Operations:
Revenue	$	8,227			$	4,052			$	4,175		103.0	%
Gross profit (loss)	$	(218)			$	491			$	(709)		(144.4)	%
Gross profit (loss) as a % of revenue	(2.6)%				12.1%				(1,470)			bps
	Nine Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands)
Total reported Fixed Operations:
Revenue	$	21,407			$	13,271			$	8,136		61.3	%
Gross profit (loss)	$	(589)			$	2,386			$	(2,975)		(124.7)	%
Gross profit (loss) as a % of revenue	(2.8)%				18.0%				(2,080)			bps
	Three Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands)
Total same store Fixed Operations:
Revenue	$	6,564			$	3,668			$	2,896		79.0	%
Gross profit (loss)	$	(187)			$	531			$	(718)		(135.2)	%
Gross profit (loss) as a % of revenue	(2.8)%				14.5%				(1,730)			bps
	Nine Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands)
Total same store Fixed Operations:
Revenue	$	16,894			$	11,693			$	5,201		44.5	%
Gross profit (loss)	$	(479)			$	2,084			$	(2,563)		(123.0)	%
Gross profit (loss) as a % of revenue	(2.8)%				17.8%				(2,060)			bps

Selling, General and Administrative ("SG&A") Expenses - Non-GAAP Reconciliation
	Three Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands)
Reported:
Compensation	$	184,089			$	175,393			$	(8,696)		(5.0)	%
Advertising	15,856				14,652				(1,204)			(8.2)	%
Rent	12,721				14,881				2,160			14.5	%
Other	84,160				84,096				(64)			(0.1)	%
Total SG&A expenses	$	296,826			$	289,022			$	(7,804)		(2.7)	%
Items of interest:
Gain (loss) on franchise disposals	$	—			$	(346)
Storm damage charges	—				(1,185)
Executive transition costs	—				(1,581)
Total SG&A adjustments	$	—			$	(3,112)
Adjusted:
Total adjusted SG&A expenses	$	296,826			$	285,910			$	(10,916)		(3.8)	%
Reported:
SG&A expenses as a % of gross profit:
Compensation	47.6%				48.6%				100		bps
Advertising	4.1%				4.1%				—		bps
Rent	3.3%				4.1%				80		bps
Other	21.7%				23.4%				170		bps
Total SG&A expenses as a % of gross profit	76.7%				80.2%				350		bps
Items of interest:
Gain (loss) on franchise disposals	—%				(0.1)%
Storm damage charges	—%				(0.3)%
Executive transition costs	—%				(0.5)%
Total effect of adjustments	—%				(0.9)%
Adjusted:
Total adjusted SG&A expenses as a % of gross profit	76.7%				79.3%				260		bps

Selling, General and Administrative ("SG&A") Expenses - Non-GAAP Reconciliation
	Nine Months Ended September 30,								Better / (Worse)
	2019				2018				Change			% Change
	(In thousands)
Reported:
Compensation	$	549,470			$	558,071			$	8,601		1.5	%
Advertising	46,308				46,938				630			1.3	%
Rent	41,308				50,451				9,143			18.1	%
Other	201,367				215,950				14,583			6.8	%
Total SG&A expenses	$	838,453			$	871,410			$	32,957		3.8	%
Items of interest:
Gain (loss) on franchise disposals	$	46,680			$	38,893
Legal and storm damage charges	—				(5,749)
Executive transition costs	(6,264)				(1,581)
Long-term compensation charges	—				(32,522)
Lease exit charges	—				(2,235)
Total SG&A adjustments	$	40,416			$	(3,194)
Adjusted:
Total adjusted SG&A expenses	$	878,869			$	868,216			$	(10,653)		(1.2)	%
Reported:
SG&A expenses as a % of gross profit:
Compensation	48.7%				51.9%				320		bps
Advertising	4.1%				4.4%				30		bps
Rent	3.7%				4.7%				100		bps
Other	17.9%				20.0%				210		bps
Total SG&A expenses as a % of gross profit	74.4%				81.0%				660		bps
Items of interest:
Gain (loss) on franchise disposals	4.2%				3.7%
Legal and storm damage charges	—%				(0.5)%
Executive transition costs	—%				(0.1)%
Long-term compensation charges	(0.6)%				(3.1)%
Lease exit charges	—%				(0.2)%
Total effect of adjustments	3.6%				(0.3)%
Adjusted:
Total adjusted SG&A expenses as a % of gross profit	78.0%				80.7%				270		bps

Earnings per Share from Continuing Operations - Non-GAAP Reconciliation
	Three Months Ended September 30, 2019								Three Months Ended September 30, 2018
	Weighted- Average Shares		Amount			Per Share Amount			Weighted- Average Shares		Amount			Per Share Amount
	(In thousands, except per share amounts)
Diluted earnings (loss) and shares from continuing operations	44,203		$	29,168		$	0.66		42,994		$	15,301		$	0.36
Pre-tax items of interest:
(Gain) loss on franchise disposals			$	—							$	346
Storm damage charges			—								1,185
Executive transition costs			—								1,581
Total pre-tax items of interest			—								3,112
Tax effect of above items			—								(848)
Non-recurring tax items			—								763
Adjusted diluted earnings (loss) and shares from continuing operations	44,203		$	29,168		$	0.66		42,994		$	18,328		$	0.43

	Nine Months Ended September 30, 2019								Nine Months Ended September 30, 2018
	Weighted- Average Shares		Amount			Per Share Amount			Weighted- Average Shares		Amount			Per Share Amount
	(In thousands, except per share amounts)
Diluted earnings (loss) and shares from continuing operations	43,456		$	98,268		$	2.26		42,964		$	30,409		$	0.71
Pre-tax items of interest:
(Gain) loss on franchise disposals			$	(46,680)							$	(38,893)
Legal and storm damage charges			—								5,749
Long-term compensation charges			—								32,522
Executive transition costs			6,264								1,581
Impairment charges			1,926								13,958
Lease exit charges			—								2,235
Total pre-tax items of interest			(38,490)								17,152
Tax effect of above items			12,902								(4,674)
Non-recurring tax items			—								1,313
Adjusted diluted earnings (loss) and shares from continuing operations	43,456		$	72,680		$	1.67		42,964		$	44,200		$	1.03

Adjusted EBITDA - Non-GAAP Reconciliation
	Three Months Ended September 30, 2019												Three Months Ended September 30, 2018
	Franchised Dealerships Segment			EchoPark Segment			Discontinued Operations			Total			Franchised Dealerships Segment			EchoPark Segment			Discontinued Operations			Total
	(In thousands)
Net income (loss)										$	29,010											$	15,118
Provision for income taxes										11,307												7,262
Income (loss) before taxes	$	38,417		$	2,123		$	(223)		$	40,317		$	28,087		$	(5,455)		$	(252)		$	22,380
Non-floor plan interest	12,011			402			—			12,413			12,279			423			98			12,800
Depreciation & amortization	21,561			2,703			—			24,264			22,140			1,999			—			24,139
Stock-based compensation expense	2,681			—			—			2,681			4,578			—			—			4,578
Loss (gain) on exit of leased dealerships	—			—			—			—			24			4			103			131
Asset impairment charges	—			1,124			—			1,124			—			—			—			—
Loss (gain) on franchise disposals	823			—			—			823			88			—			—			88
Adjusted EBITDA	$	75,493		$	6,352		$	(223)		$	81,622		$	67,196		$	(3,029)		$	(51)		$	64,116

	Nine Months Ended September 30, 2019												Nine Months Ended September 30, 2018
	Franchised Dealerships Segment			EchoPark Segment			Discontinued Operations			Total			Franchised Dealerships Segment			EchoPark Segment			Discontinued Operations			Total
	(In thousands)
Net income (loss)										$	97,831											$	29,830
Provision for income taxes										40,251												13,493
Income (loss) before taxes	$	134,701		$	3,997		$	(616)		$	138,082		$	92,094		$	(47,974)		$	(797)		$	43,323
Non-floor plan interest	36,440			1,266			—			37,706			37,097			1,219			319			38,635
Depreciation & amortization	64,121			7,788			—			71,909			67,771			5,584			—			73,355
Stock-based compensation expense	8,107			—			—			8,107			10,589			—			—			10,589
Loss (gain) on exit of leased dealerships	(170)			—			—			(170)			2,361			18			318			2,697
Asset impairment charges	25			3,051			—			3,076			13,879			82			—			13,961
Long-term compensation charges	—			—			—			—			—			32,522			—			32,522
Loss (gain) on franchise disposals	(45,570)			—			—			(45,570)			(39,149)			—			—			(39,149)
Adjusted EBITDA	$	197,654		$	16,102		$	(616)		$	213,140		$	184,642		$	(8,549)		$	(160)		$	175,933

 

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