Sonic Automotive Reports All-Time Record Fourth Quarter and All-Time Record Full Year 2019

Sonic Automotive, Inc. (“Sonic” or the “Company”) (NYSE:SAH), one of the nation’s largest automotive retailers, today reported financial results for the fourth quarter and full year ended December 31, 2019.

Fourth Quarter Highlights

• All-time record quarterly earnings per diluted share from continuing operations of $1.04 for the fourth quarter of 2019, up 104% compared to the fourth quarter of 2018
• All-time record quarterly consolidated total revenues of $2.7 billion and gross profit of $393.9 million for the fourth quarter of 2019, compared to $2.6 billion and $370.7 million, respectively, for the fourth quarter of 2018
• EchoPark revenues of $308.6 million, up 52% from the fourth quarter of 2018, EchoPark retail volume of 12,676 units, up 45% from the fourth quarter of 2018
• EchoPark segment income of $2.1 million, up 145% compared to the fourth quarter of 2018
• Same Store Franchised Dealerships Segment operating results:
  • Revenues up 8.5%, gross profit up 9.4% compared to the fourth quarter of 2018
  • New vehicle unit volume up 7.5%; new vehicle gross profit per unit up 1.4%, to $2,213 per unit
  • Retail used vehicle unit volume up 9.7%; retail used vehicle gross profit per unit up 2.6%, to $1,269 per unit
  • Parts, service and collision repair gross profit up 6.2%, Customer Pay gross profit up 10.2% compared to the fourth quarter of 2018
  • Finance and insurance (“F&I”) gross profit up 13.7% compared to the fourth quarter of 2018 (all-time record quarterly F&I gross profit per retail unit of $1,809 on a total Sonic consolidated basis)

Full Year Highlights

• All-time record full year earnings per diluted share from continuing operations of $3.31, up 171% compared to 2018
• All-time record full year consolidated total revenues of $10.5 billion and gross profit of $1.5 billion, compared to $10.0 billion and $1.4 billion, respectively, for 2018
• EchoPark revenues of $1.2 billion, up 66% from 2018, EchoPark retail volume of 49,520 units, up 68% from 2018
• EchoPark segment income of $9.1 million, up 117% compared to 2018
• Fiscal year 2019 debt reduction of $238 million, in line with $300 million target by mid-to-late 2020
• Same Store Franchised Dealerships Segment operating results:
  • Revenues up 5.5%, gross profit up 6.7% compared to 2018
  • New vehicle unit volume up 0.6%; new vehicle gross profit per unit up 0.4%, to $2,083 per unit
  • Retail used vehicle unit volume up 7.7%; retail used vehicle gross profit per unit down 1.8%, to $1,272 per unit
  • Parts, service and collision repair gross profit up 6.0%, Customer Pay gross profit up 8.2% compared to 2018
  • F&I gross profit up 10.3% compared to 2018 (all-time record annual F&I gross profit per retail unit of $1,743 on a total Sonic consolidated basis)

Commentary

David Smith, Sonic’s and EchoPark's Chief Executive Officer, commented, “Our 2019 performance was exceptional, with record-breaking consolidated total revenues and earnings per diluted share from continuing operations. This was led by tremendous year-over-year annual revenue growth of 66% at EchoPark, our specialty pre-owned vehicle stores, as well as strong performance from our franchised dealerships.”

Mr. Smith continued, “During the fourth quarter, EchoPark opened its Long Beach, California store, our ninth location nationwide and our first in California. Upon opening, this location proceeded to sell over 450 vehicles within the first 45 days of operation. This is an excellent start and it speaks to the strength of our unique business model and the industry-leading guest experience our EchoPark stores provide. EchoPark experienced strong growth in 2019, and we believe it is poised for further growth in 2020 as we capitalize on opportunities to expand EchoPark’s reach into new markets, which we expect to include three new stores by the end of 2020. Taking into consideration EchoPark’s growth trajectory and the continued strength of our franchised dealerships, 2020 marks the beginning of our march towards our long-term goal of achieving $20 billion in total annual revenues this decade.”

Jeff Dyke, Sonic's and EchoPark's President, commented, “In 2019, we continued improving our operational performance, driving increased gross profit to our bottom line. As a result, we achieved record net income from continuing operations of $3.31 per diluted share for the year. At the same time, we moved forward with our deleveraging initiatives, resulting in a total debt reduction of $238 million. With the progress we have made, we are well on our way to reaching our stated goal of reducing debt by $300 million by mid-to-late 2020. With our strong 2019 results and improved balance sheet, we are well positioned to execute on our growth plans for our increasingly profitable EchoPark business, even as we continue to strategically grow our core franchised business.”

Fourth Quarter 2019 Operational Summary

For the fourth quarter of 2019, Sonic consolidated total revenues were $2.7 billion, up 7% compared to the fourth quarter of 2018. EchoPark Segment revenues were $308.6 million for the fourth quarter of 2019, representing a 52% increase from the fourth quarter of 2018. Franchised Dealerships Segment revenues were $2.4 billion for the fourth quarter of 2019, up 3% from the fourth quarter of 2018, despite the disposal of ten franchised dealerships in 2019 which generated revenues of $165.7 million during the fourth quarter of 2018.

SG&A expenses were $260.9 million in the fourth quarter of 2019, a decrease of 5% compared to the year-ago period, including the effect of items of interest below. SG&A expenses as a percentage of gross profit were 66.2% for the fourth quarter of 2019 compared to 73.9% in the fourth quarter of 2018. Excluding certain items of interest below (a non-GAAP measure), SG&A expenses as a percentage of gross profit improved 40 basis points, to 73.7%, for the fourth quarter of 2019, compared to 74.1% in the year-ago period.

Net income from continuing operations for the fourth quarter of 2019 was $46.3 million, or $1.04 per diluted share. Comparatively, net income from continuing operations for the fourth quarter of 2018 was $22.0 million, or $0.51 per diluted share. Included in the above reported fourth quarter results (unless otherwise noted) are the following pre-tax items of interest:

(In millions)		Q4 2019					Q4 2018					Income Statement Line Item
Gain on franchise disposals		$	29.3				$	—				SG&A expenses
Lease exit adjustments		—					0.8					SG&A expenses
Impairment charges		(17.7		)			(15.6		)			Impairment charges	(1	)
Loss on extinguishment of debt		(7.2		)			—					Other expense
Subtotal: Pre-tax items of interest		$	4.4				$	(14.8	)
Tax effect of above items		(1.2		)			4.1
Tax-effected items of interest		$	3.2				$	(10.7	)

Note: Amounts in table relate to the Franchised Dealerships Segment unless otherwise noted.
(1) $16.6 million in the fourth quarter of 2019 and $1.5 million in the fourth quarter of 2018 attributed to the EchoPark Segment related to building and land held for sale at former EchoPark locations.

Full Year 2019 Operational Summary

For full year 2019, Sonic consolidated total revenues were $10.5 billion, up 5% compared to 2018. EchoPark Segment revenues were $1.2 billion for full year 2019, representing a 66% increase from 2018. Franchised Dealerships Segment revenues were $9.3 billion for full year 2019, flat compared to 2018, despite the disposal of ten franchised dealerships in 2019 which generated revenues of $656.1 million during 2018.

SG&A expenses were $1.1 billion in 2019, a decrease of 4% compared to 2018, including the effect of items of interest below. SG&A expenses as a percentage of gross profit were 72.3% in 2019 compared to 79.2% in 2018. Excluding certain items of interest below (a non-GAAP measure), SG&A expense as a percentage of gross profit improved 210 basis points, to 76.9%, for full year 2019, compared to 79.0% in 2018. Overall SG&A expense decreased as the Company continued its focus on disciplined expense control.

Net income from continuing operations for full year 2019 was $144.5 million, or $3.31 per diluted share. Comparatively, net income from continuing operations for full year 2018 was $52.4 million, or $1.22 per diluted share. Included in the above reported full year results (unless otherwise noted) are the following pre-tax items of interest:

(In millions)		FY 2019					FY 2018					Income Statement Line Item
Gain on franchise disposals		$	76.0				$	38.9				SG&A expenses
Executive transition costs		(6.3		)			(1.6		)			SG&A expenses
Legal and storm damage charges		—					(5.7		)			SG&A expenses
Long-term compensation charges		—					(32.5		)			SG&A expenses	(1	)
Lease exit adjustments		—					(1.4		)			SG&A expenses
Impairment charges		(19.6		)			(29.5		)			Impairment charges	(2	)
Loss on extinguishment of debt		(7.2		)			—					Other expense
Subtotal: Pre-tax items of interest		$	42.9				$	(31.8	)
Tax effect of above items		(14.2		)			7.3
Tax-effected items of interest		$	28.7				$	(24.5	)

Note: Amounts in table relate to the Franchised Dealerships Segment unless otherwise noted.
(1) $32.5 million in 2018 relates to the EchoPark Segment.
(2) $18.5 million in 2019 and $1.6 million in 2018 attributed to the EchoPark Segment related to building and land held for sale at former EchoPark locations.

Dividend

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

Fourth Quarter 2019 / Full Year 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” at the top of the page, then “Investor Relations,” then “Earnings Conference Calls” 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: 1659619

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: 1659619

Presentation materials for the Company’s earnings conference call will be accessible beginning the morning of the conference call on the Company’s website at www.sonicautomotive.com by clicking on “Our Company” at the top of the page, then “Investor Relations,” then “Webcasts & Presentations” at the bottom of the page.

About Sonic Automotive

Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, North Carolina, is one of the nation’s largest automotive retailers. Sonic can be reached on the web at www.sonicautomotive.com.

About EchoPark Automotive

EchoPark Automotive is an operating segment within the Company with nine existing locations that specialize in pre-owned vehicle sales and provide a unique guest experience unlike traditional used car stores. More information about EchoPark Automotive can be found at www.echopark.com.

Forward-Looking Statements

Included herein are forward-looking statements, including statements with respect to long-term annual revenue targets, anticipated future growth and profitability in the Company’s EchoPark Segment, anticipated openings of new EchoPark stores in 2020, anticipated future performance and growth of our Franchised Dealerships Segment, and anticipated future debt reduction in 2020. 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, 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 expansion or contraction, 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 may contain certain non-GAAP financial measures as defined under SEC rules, such as SG&A expenses as a percentage of gross profit excluding certain items required to be included by GAAP. 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 attached financial tables. 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 December 31,										Better / (Worse)				Twelve Months Ended December 31,										Better / (Worse)
	2019					2018					% Change				2019					2018					% Change
	(In thousands, except per share amounts)
Revenues:
New vehicles	$	1,360,064				$	1,319,587				3.1		%		$	4,889,171				$	4,974,097				(1.7	)	%
Used vehicles	869,708					755,882					15.1		%		3,489,972					2,973,498					17.4		%
Wholesale vehicles	46,596					49,899					(6.6	)	%		202,946					217,625					(6.7	)	%
Total vehicles	2,276,368					2,125,368					7.1		%		8,582,089					8,165,220					5.1		%
Parts, service and collision repair	346,514					339,257					2.1		%		1,395,303					1,380,887					1.0		%
Finance, insurance and other, net	125,522					109,633					14.5		%		476,951					405,523					17.6		%
Total revenues	2,748,404					2,574,258					6.8		%		10,454,343					9,951,630					5.1		%
Cost of Sales:
New vehicles	(1,292,480		)			(1,253,792		)			3.1		%		(4,656,084		)			(4,732,595		)			(1.6	)	%
Used vehicles	(832,877		)			(722,291		)			15.3		%		(3,342,576		)			(2,830,510		)			18.1		%
Wholesale vehicles	(47,941		)			(52,069		)			(7.9	)	%		(207,378		)			(228,874		)			(9.4	)	%
Total vehicles	(2,173,298		)			(2,028,152		)			7.2		%		(8,206,038		)			(7,791,979		)			5.3		%
Parts, service and collision repair	(181,222		)			(175,391		)			3.3		%		(727,288		)			(713,526		)			1.9		%
Total cost of sales	(2,354,520		)			(2,203,543		)			6.9		%		(8,933,326		)			(8,505,505		)			5.0		%
Gross profit	393,884					370,715					6.2		%		1,521,017					1,446,125					5.2		%
Selling, general and administrative expenses	(260,921		)			(273,915		)			4.7		%		(1,099,374		)			(1,145,325		)			4.0		%
Impairment charges	(17,692		)			(15,553		)			(13.8	)	%		(20,768		)			(29,514		)			29.6		%
Depreciation and amortization	(23,048		)			(22,556		)			(2.2	)	%		(93,169		)			(93,623		)			0.5		%
Operating income (loss)	92,223					58,691					57.1		%		307,706					177,663					73.2		%
Other income (expense):
Interest expense, floor plan	(11,137		)			(13,585		)			18.0		%		(48,519		)			(48,398		)			(0.3	)	%
Interest expense, other, net	(13,458		)			(13,914		)			3.3		%		(52,953		)			(54,059		)			2.0		%
Other income (expense), net	(6,680		)			—					(100.0	)	%		(6,589		)			106					(6316.0	)	%
Total other income (expense)	(31,275		)			(27,499		)			(13.7	)	%		(108,061		)			(102,351		)			(5.6	)	%
Income (loss) from continuing operations before taxes	60,948					31,192					95.4		%		199,645					75,312					165.1		%
Provision for income taxes for continuing operations - benefit (expense)	(14,676		)			(9,212		)			(59.3	)	%		(55,108		)			(22,922		)			(140.4	)	%
Income (loss) from continuing operations	46,272					21,980					110.5		%		144,537					52,390					175.9		%
Discontinued operations:
Income (loss) from discontinued operations before taxes	62					(221		)			128.1		%		(554		)			(1,017		)			45.5		%
Provision for income taxes for discontinued operations - benefit (expense)	(27		)			62					(143.5	)	%		154					277					(44.4	)	%
Income (loss) from discontinued operations	35					(159		)			122.0		%		(400		)			(740		)			45.9		%
Net income (loss)	$	46,307				$	21,821				112.2		%		$	144,137				$	51,650				179.1		%
Basic earnings (loss) per common share:
Earnings (loss) per share from continuing operations	$	1.07				$	0.51				109.8		%		$	3.36				$	1.23				173.2		%
Earnings (loss) per share from discontinued operations	—					—					—		%		(0.01		)			(0.02		)			50.0		%
Earnings (loss) per common share	$	1.07				$	0.51				109.8		%		$	3.35				$	1.21				176.9		%
Weighted-average common shares outstanding	43,078					42,710					0.9		%		43,016					42,708					0.7		%
Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations	$	1.04				$	0.51				103.9		%		$	3.31				$	1.22				171.3		%
Earnings (loss) per share from discontinued operations	—					—					—		%		(0.01		)			(0.02		)			50.0		%
Earnings (loss) per common share	$	1.04				$	0.51				103.9		%		$	3.30				$	1.20				175.0		%
Weighted-average common shares outstanding	44,463					42,911					(3.6	)	%		43,710					42,950					(1.8	)	%
Dividends declared per common share	$	0.10				$	0.06				66.7		%		$	0.40				$	0.24				66.7		%

New Vehicles - Consolidated
	Three Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands, except unit and per unit data)
Reported new vehicle:
Revenue	$	1,360,064			$	1,319,587			$	40,477				3.1		%
Gross profit	$	67,584			$	65,795			$	1,789				2.7		%
Unit sales	30,591				31,331				(740		)			(2.4	)	%
Revenue per unit	$	44,460			$	42,118			$	2,342				5.6		%
Gross profit per unit	$	2,209			$	2,100			$	109				5.2		%
Gross profit as a % of revenue	5.0		%		5.0		%		—					bps
	Twelve Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands, except unit and per unit data)
Reported new vehicle:
Revenue	$	4,889,171			$	4,974,097			$	(84,926	)			(1.7	)	%
Gross profit	$	233,087			$	241,502			$	(8,415	)			(3.5	)	%
Unit sales	114,131				122,717				(8,586		)			(7.0	)	%
Revenue per unit	$	42,838			$	40,533			$	2,305				5.7		%
Gross profit per unit	$	2,042			$	1,968			$	74				3.8		%
Gross profit as a % of revenue	4.8		%		4.9		%		(10		)			bps
	Three Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands, except unit and per unit data)
Same store new vehicle:
Revenue	$	1,336,909			$	1,215,081			$	121,828				10.0		%
Gross profit	$	66,437			$	60,919			$	5,518				9.1		%
Unit sales	30,018				27,921				2,097					7.5		%
Revenue per unit	$	44,537			$	43,519			$	1,018				2.3		%
Gross profit per unit	$	2,213			$	2,182			$	31				1.4		%
Gross profit as a % of revenue	5.0		%		5.0		%		—					bps
	Twelve Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands, except unit and per unit data)
Same store new vehicle:
Revenue	$	4,691,795			$	4,504,210			$	187,585				4.2		%
Gross profit	$	224,526			$	222,335			$	2,191				1.0		%
Unit sales	107,803				107,149				654					0.6		%
Revenue per unit	$	43,522			$	42,037			$	1,485				3.5		%
Gross profit per unit	$	2,083			$	2,075			$	8				0.4		%
Gross profit as a % of revenue	4.8		%		4.9		%		(10		)			bps

Used Vehicles - Consolidated
	Three Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands, except unit and per unit data)
Reported used vehicle:
Revenue	$	869,708			$	755,882			$	113,826				15.1		%
Gross profit	$	36,831			$	33,591			$	3,240				9.6		%
Unit sales	39,775				35,135				4,640					13.2		%
Revenue per unit	$	21,866			$	21,514			$	352				1.6		%
Gross profit per unit	$	926			$	956			$	(30	)			(3.1	)	%
Gross profit as a % of revenue	4.2		%		4.4		%		(20		)			bps
	Twelve Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands, except unit and per unit data)
Reported used vehicle:
Revenue	$	3,489,972			$	2,973,498			$	516,474				17.4		%
Gross profit	$	147,396			$	142,988			$	4,408				3.1		%
Unit sales	162,149				139,605				22,544					16.1		%
Revenue per unit	$	21,523			$	21,299			$	224				1.1		%
Gross profit per unit	$	909			$	1,024			$	(115	)			(11.2	)	%
Gross profit as a % of revenue	4.2		%		4.8		%		(60		)			bps
	Three Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands, except unit and per unit data)
Same store used vehicle:
Revenue	$	809,993			$	711,494			$	98,499				13.8		%
Gross profit	$	33,604			$	28,127			$	5,477				19.5		%
Unit sales	37,174				32,446				4,728					14.6		%
Revenue per unit	$	21,789			$	21,929			$	(140	)			(0.6	)	%
Gross profit per unit	$	904			$	867			$	37				4.3		%
Gross profit as a % of revenue	4.1		%		4.0		%		10					bps
	Twelve Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands, except unit and per unit data)
Same store used vehicle:
Revenue	$	3,191,404			$	2,759,003			$	432,401				15.7		%
Gross profit	$	131,695			$	124,304			$	7,391				5.9		%
Unit sales	146,456				126,415				20,041					15.9		%
Revenue per unit	$	21,791			$	21,825			$	(34	)			(0.2	)	%
Gross profit per unit	$	899			$	983			$	(84	)			(8.5	)	%
Gross profit as a % of revenue	4.1		%		4.5		%		(40		)			bps

Wholesale Vehicles - Consolidated
	Three Months Ended December 31,										Better / (Worse)
	2019					2018					Change					% Change
	(In thousands, except unit and per unit data)
Reported wholesale vehicle:
Revenue	$	46,596				$	49,899				$	(3,303	)			(6.6	)	%
Gross profit (loss)	$	(1,345	)			$	(2,170	)			$	825				38.0		%
Unit sales	7,899					8,214					(315		)			(3.8	)	%
Revenue per unit	$	5,899				$	6,075				$	(176	)			(2.9	)	%
Gross profit (loss) per unit	$	(170	)			$	(264	)			$	94				35.5		%
Gross profit (loss) as a % of revenue	(2.9		)	%		(4.3		)	%		140					bps
	Twelve Months Ended December 31,										Better / (Worse)
	2019					2018					Change					% Change
	(In thousands, except unit and per unit data)
Reported wholesale vehicle:
Revenue	$	202,946				$	217,625				$	(14,679	)			(6.7	)	%
Gross profit (loss)	$	(4,432	)			$	(11,249	)			$	6,817				60.6		%
Unit sales	34,153					34,167					(14		)			—		%
Revenue per unit	$	5,942				$	6,369				$	(427	)			(6.7	)	%
Gross profit (loss) per unit	$	(130	)			$	(329	)			$	199				60.5		%
Gross profit (loss) as a % of revenue	(2.2		)	%		(5.2		)	%		300					bps
	Three Months Ended December 31,										Better / (Worse)
	2019					2018					Change					% Change
	(In thousands, except unit and per unit data)
Same store wholesale vehicle:
Revenue	$	44,769				$	46,458				$	(1,689	)			(3.6	)	%
Gross profit (loss)	$	(1,355	)			$	(1,962	)			$	607				30.9		%
Unit sales	7,415					7,356					59					0.8		%
Revenue per unit	$	6,038				$	6,316				$	(278	)			(4.4	)	%
Gross profit (loss) per unit	$	(183	)			$	(267	)			$	84				31.5		%
Gross profit (loss) as a % of revenue	(3.0		)	%		(4.2		)	%		120					bps
	Twelve Months Ended December 31,										Better / (Worse)
	2019					2018					Change					% Change
	(In thousands, except unit and per unit data)
Same store wholesale vehicle:
Revenue	$	191,431				$	195,743				$	(4,312	)			(2.2	)	%
Gross profit (loss)	$	(3,808	)			$	(9,792	)			$	5,984				61.1		%
Unit sales	31,016					29,245					1,771					6.1		%
Revenue per unit	$	6,172				$	6,693				$	(521	)			(7.8	)	%
Gross profit (loss) per unit	$	(123	)			$	(335	)			$	212				63.3		%
Gross profit (loss) as a % of revenue	(2.0		)	%		(5.0		)	%		300					bps

Parts, Service and Collision Repair (“Fixed Operations”) - Consolidated
	Three Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands)
Reported Fixed Operations:
Revenue:
Customer pay	$	141,442			$	137,690			$	3,752				2.7		%
Warranty	63,713				68,425				(4,712		)			(6.9	)	%
Wholesale parts	39,934				38,302				1,632					4.3		%
Internal, sublet and other	101,425				94,840				6,585					6.9		%
Total	$	346,514			$	339,257			$	7,257				2.1		%
Gross profit:
Customer pay	$	76,346			$	73,173			$	3,173				4.3		%
Warranty	35,302				38,411				(3,109		)			(8.1	)	%
Wholesale parts	6,868				6,797				71					1.0		%
Internal, sublet and other	46,776				45,485				1,291					2.8		%
Total	$	165,292			$	163,866			$	1,426				0.9		%
Gross profit as a % of revenue:
Customer pay	54.0		%		53.1		%		90				bps
Warranty	55.4		%		56.1		%		(70		)		bps
Wholesale parts	17.2		%		17.7		%		(50		)		bps
Internal, sublet and other	46.1		%		48.0		%		(190		)		bps
Total	47.7		%		48.3		%		(60		)		bps
	Twelve Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands)
Reported Fixed Operations:
Revenue:
Customer pay	$	561,422			$	560,037			$	1,385				0.2		%
Warranty	272,389				266,644				5,745					2.2		%
Wholesale parts	157,603				161,066				(3,463		)			(2.2	)	%
Internal, sublet and other	403,889				393,140				10,749					2.7		%
Total	$	1,395,303			$	1,380,887			$	14,416				1.0		%
Gross profit:
Customer pay	$	304,950			$	299,617			$	5,333				1.8		%
Warranty	150,984				150,746				238					0.2		%
Wholesale parts	27,187				27,746				(559		)			(2.0	)	%
Internal, sublet and other	184,894				189,252				(4,358		)			(2.3	)	%
Total	$	668,015			$	667,361			$	654				0.1		%
Gross profit as a % of revenue:
Customer pay	54.3		%		53.5		%		80				bps
Warranty	55.4		%		56.5		%		(110		)		bps
Wholesale parts	17.3		%		17.2		%		10				bps
Internal, sublet and other	45.8		%		48.1		%		(230		)		bps
Total	47.9		%		48.3		%		(40		)		bps

Fixed Operations - Consolidated (Continued)
	Three Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands)
Same store Fixed Operations:
Revenue:
Customer pay	$	139,273			$	129,217			$	10,056				7.8		%
Warranty	63,042				65,432				(2,390		)			(3.7	)	%
Wholesale parts	39,398				36,483				2,915					8.0		%
Internal, sublet and other	98,942				87,904				11,038					12.6		%
Total	$	340,655			$	319,036			$	21,619				6.8		%
Gross profit:
Customer pay	$	75,406			$	68,444			$	6,962				10.2		%
Warranty	35,007				36,748				(1,741		)			(4.7	)	%
Wholesale parts	6,772				6,423				349					5.4		%
Internal, sublet and other	46,116				42,256				3,860					9.1		%
Total	$	163,301			$	153,871			$	9,430				6.1		%
Gross profit as a % of revenue:
Customer pay	54.1		%		53.0		%		110				bps
Warranty	55.5		%		56.2		%		(70		)		bps
Wholesale parts	17.2		%		17.6		%		(40		)		bps
Internal, sublet and other	46.6		%		48.1		%		(150		)		bps
Total	47.9		%		48.2		%		(30		)		bps
	Twelve Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands)
Same store Fixed Operations:
Revenue:
Customer pay	$	547,826			$	517,152			$	30,674				5.9		%
Warranty	264,282				250,750				13,532					5.4		%
Wholesale parts	154,166				152,030				2,136					1.4		%
Internal, sublet and other	384,584				359,441				25,143					7.0		%
Total	$	1,350,858			$	1,279,373			$	71,485				5.6		%
Gross profit:
Customer pay	$	297,916			$	275,484			$	22,432				8.1		%
Warranty	146,644				140,305				6,339					4.5		%
Wholesale parts	26,542				25,972				570					2.2		%
Internal, sublet and other	177,442				172,786				4,656					2.7		%
Total	$	648,544			$	614,547			$	33,997				5.5		%
Gross profit as a % of revenue:
Customer pay	54.4		%		53.3		%		110				bps
Warranty	55.5		%		56.0		%		(50		)		bps
Wholesale parts	17.2		%		17.1		%		10				bps
Internal, sublet and other	46.1		%		48.1		%		(200		)		bps
Total	48.0		%		48.0		%		—				bps

Finance, Insurance and Other, Net (“F&I”) - Consolidated
	Three Months Ended December 31,								Better / (Worse)
	2019				2018				Change				% Change
	(In thousands, except unit and per unit data)
Reported F&I:
Revenue	$	125,522			$	109,633			$	15,889			14.5	%
Unit sales	69,376				66,102				3,274				5.0	%
Gross profit per retail unit (excludes fleet)	$	1,809			$	1,659			$	151			9.1	%
	Twelve Months Ended December 31,								Better / (Worse)
	2019				2018				Change				% Change
	(In thousands, except unit and per unit data)
Reported F&I:
Revenue	$	476,951			$	405,523			$	71,428			17.6	%
Unit sales	273,606				260,424				13,182				5.1	%
Gross profit per retail unit (excludes fleet)	$	1,743			$	1,557			$	186			11.9	%
	Three Months Ended December 31,								Better / (Worse)
	2019				2018				Change				% Change
	(In thousands, except unit and per unit data)
Same store F&I:
Revenue	$	115,513			$	98,634			$	16,879			17.1	%
Unit sales	66,202				60,003				6,199				10.3	%
Gross profit per retail unit (excludes fleet)	$	1,745			$	1,644			$	101			6.1	%
	Twelve Months Ended December 31,								Better / (Worse)
	2019				2018				Change				% Change
	(In thousands, except unit and per unit data)
Same store F&I:
Revenue	$	426,441			$	360,317			$	66,124			18.4	%
Unit sales	251,585				231,711				19,874				8.6	%
Gross profit per retail unit (excludes fleet)	$	1,695			$	1,555			$	140			9.0	%

New Vehicles - Franchised Dealerships Segment
	Three Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands, except unit and per unit data)
Reported new vehicle:
Revenue	$	1,360,064			$	1,319,587			$	40,477				3.1		%
Gross profit	$	67,584			$	65,795			$	1,789				2.7		%
Unit sales	30,591				31,331				(740		)			(2.4	)	%
Revenue per unit	$	44,460			$	42,118			$	2,342				5.6		%
Gross profit per unit	$	2,209			$	2,100			$	109				5.2		%
Gross profit as a % of revenue	5.0		%		5.0		%		—					bps
	Twelve Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands, except unit and per unit data)
Reported new vehicle:
Revenue	$	4,889,171			$	4,974,097			$	(84,926	)			(1.7	)	%
Gross profit	$	233,087			$	241,502			$	(8,415	)			(3.5	)	%
Unit sales	114,131				122,717				(8,586		)			(7.0	)	%
Revenue per unit	$	42,838			$	40,533			$	2,305				5.7		%
Gross profit per unit	$	2,042			$	1,968			$	74				3.8		%
Gross profit as a % of revenue	4.8		%		4.9		%		(10		)			bps
	Three Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands, except unit and per unit data)
Same store new vehicle:
Revenue	$	1,336,909			$	1,215,081			$	121,828				10.0		%
Gross profit	$	66,437			$	60,919			$	5,518				9.1		%
Unit sales	30,018				27,921				2,097					7.5		%
Revenue per unit	$	44,537			$	43,519			$	1,018				2.3		%
Gross profit per unit	$	2,213			$	2,182			$	31				1.4		%
Gross profit as a % of revenue	5.0		%		5.0		%		—					bps
	Twelve Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands, except unit and per unit data)
Same store new vehicle:
Revenue	$	4,691,795			$	4,504,210			$	187,585				4.2		%
Gross profit	$	224,526			$	222,335			$	2,191				1.0		%
Unit sales	107,803				107,149				654					0.6		%
Revenue per unit	$	43,522			$	42,037			$	1,485				3.5		%
Gross profit per unit	$	2,083			$	2,075			$	8				0.4		%
Gross profit as a % of revenue	4.8		%		4.9		%		(10		)			bps

Used Vehicles - Franchised Dealerships Segment
	Three Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands, except unit and per unit data)
Reported used vehicle:
Revenue	$	604,422			$	576,396			$	28,026				4.9		%
Gross profit	$	35,727			$	35,385			$	342				1.0		%
Unit sales	27,099				26,373				726					2.8		%
Revenue per unit	$	22,304			$	21,856			$	448				2.0		%
Gross profit per unit	$	1,318			$	1,342			$	(24	)			(1.8	)	%
Gross profit as a % of revenue	5.9		%		6.1		%		(24		)			bps
	Twelve Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands, except unit and per unit data)
Reported used vehicle:
Revenue	$	2,493,467			$	2,370,799			$	122,668				5.2		%
Gross profit	$	147,541			$	148,350			$	(809	)			(0.5	)	%
Unit sales	112,629				110,168				2,461					2.2		%
Revenue per unit	$	22,139			$	21,520			$	619				2.9		%
Gross profit per unit	$	1,310			$	1,347			$	(37	)			(2.7	)	%
Gross profit as a % of revenue	5.9		%		6.3		%		(40		)			bps
	Three Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands, except unit and per unit data)
Same store used vehicle:
Revenue	$	586,324			$	543,052			$	43,272				8.0		%
Gross profit	$	33,720			$	29,959			$	3,761				12.6		%
Unit sales	26,566				24,221				2,345					9.7		%
Revenue per unit	$	22,070			$	22,421			$	(351	)			(1.6	)	%
Gross profit per unit	$	1,269			$	1,237			$	32				2.6		%
Gross profit as a % of revenue	5.8		%		5.5		%		28					bps
	Twelve Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands, except unit and per unit data)
Same store used vehicle:
Revenue	$	2,394,077			$	2,201,382			$	192,695				8.8		%
Gross profit	$	136,077			$	128,648			$	7,429				5.8		%
Unit sales	106,998				99,335				7,663					7.7		%
Revenue per unit	$	22,375			$	22,161			$	214				1.0		%
Gross profit per unit	$	1,272			$	1,295			$	(23	)			(1.8	)	%
Gross profit as a % of revenue	5.7		%		5.8		%		(10		)			bps

Wholesale Vehicles - Franchised Dealerships Segment
	Three Months Ended December 31,										Better / (Worse)
	2019					2018					Change					% Change
	(In thousands, except unit and per unit data)
Reported wholesale vehicle:
Revenue	$	39,250				$	49,145				$	(9,895	)			(20.1	)	%
Gross profit (loss)	$	(1,253	)			$	(2,072	)			$	819				39.5		%
Unit sales	6,148					8,161					(2,013		)			(24.7	)	%
Revenue per unit	$	6,384				$	6,022				$	362				6.0		%
Gross profit (loss) per unit	$	(204	)			$	(254	)			$	50				19.7		%
Gross profit (loss) as a % of revenue	(3.2		)	%		(4.2		)	%		102					bps
	Twelve Months Ended December 31,										Better / (Worse)
	2019					2018					Change					% Change
	(In thousands, except unit and per unit data)
Reported wholesale vehicle:
Revenue	$	180,020				$	197,183				$	(17,163	)			(8.7	)	%
Gross profit (loss)	$	(4,100	)			$	(11,779	)			$	7,679				65.2		%
Unit sales	28,379					30,615					(2,236		)			(7.3	)	%
Revenue per unit	$	6,343				$	6,441				$	(98	)			(1.5	)	%
Gross profit (loss) per unit	$	(144	)			$	(385	)			$	241				62.6		%
Gross profit (loss) as a % of revenue	(2.3		)	%		(6.0		)	%		370					bps
	Three Months Ended December 31,										Better / (Worse)
	2019					2018					Change					% Change
	(In thousands, except unit and per unit data)
Same store wholesale vehicle:
Revenue	$	38,600				$	45,706				$	(7,106	)			(15.5	)	%
Gross profit (loss)	$	(1,269	)			$	(1,865	)			$	596				32.0		%
Unit sales	5,920					7,303					(1,383		)			(18.9	)	%
Revenue per unit	$	6,520				$	6,258				$	262				4.2		%
Gross profit (loss) per unit	$	(214	)			$	(255	)			$	41				16.1		%
Gross profit (loss) as a % of revenue	(3.3		)	%		(4.1		)	%		78					bps
	Twelve Months Ended December 31,										Better / (Worse)
	2019					2018					Change					% Change
	(In thousands, except unit and per unit data)
Same store wholesale vehicle:
Revenue	$	172,985				$	179,895				$	(6,910	)			(3.8	)	%
Gross profit (loss)	$	(3,508	)			$	(10,320	)			$	6,812				66.0		%
Unit sales	26,341					26,583					(242		)			(0.9	)	%
Revenue per unit	$	6,567				$	6,767				$	(200	)			(3.0	)	%
Gross profit (loss) per unit	$	(133	)			$	(388	)			$	255				65.7		%
Gross profit (loss) as a % of revenue	(2.0		)	%		(5.7		)	%		370					bps

Fixed Operations - Franchised Dealerships Segment
	Three Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands)
Reported Fixed Operations:
Revenue:
Customer pay	$	141,252			$	137,544			$	3,708				2.7		%
Warranty	63,713				68,425				(4,712		)			(6.9	)	%
Wholesale parts	39,934				38,302				1,632					4.3		%
Internal, sublet and other	94,269				91,929				2,340					2.5		%
Total	$	339,168			$	336,200			$	2,968				0.9		%
Gross profit:
Customer pay	$	76,343			$	73,153			$	3,190				4.4		%
Warranty	35,302				38,411				(3,109		)			(8.1	)	%
Wholesale parts	6,868				6,797				71					1.0		%
Internal, sublet and other	47,133				45,747				1,386					3.0		%
Total	$	165,646			$	164,108			$	1,538				0.9		%
Gross profit as a % of revenue:
Customer pay	54.0		%		53.2		%		80				bps
Warranty	55.4		%		56.1		%		(70		)		bps
Wholesale parts	17.2		%		17.7		%		(50		)		bps
Internal, sublet and other	50.0		%		49.8		%		20				bps
Total	48.8		%		48.8		%		—				bps
	Twelve Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands)
Reported Fixed Operations:
Revenue:
Customer pay	$	560,734			$	559,027			$	1,707				0.3		%
Warranty	272,389				266,644				5,745					2.2		%
Wholesale parts	157,603				161,066				(3,463		)			(2.2	)	%
Internal, sublet and other	375,824				377,822				(1,998		)			(0.5	)	%
Total	$	1,366,550			$	1,364,559			$	1,991				0.1		%
Gross profit:
Customer pay	$	304,927			$	299,360			$	5,567				1.9		%
Warranty	150,984				150,746				238					0.2		%
Wholesale parts	27,187				27,746				(559		)			(2.0	)	%
Internal, sublet and other	185,860				187,365				(1,505		)			(0.8	)	%
Total	$	668,958			$	665,217			$	3,741				0.6		%
Gross profit as a % of revenue:
Customer pay	54.4		%		53.6		%		80				bps
Warranty	55.4		%		56.5		%		(110		)		bps
Wholesale parts	17.3		%		17.2		%		10				bps
Internal, sublet and other	49.5		%		49.6		%		(10		)		bps
Total	49.0		%		48.7		%		30				bps

Fixed Operations - Franchised Dealerships Segment (Continued)
	Three Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands)
Same store Fixed Operations:
Revenue:
Customer pay	$	139,127			$	129,093			$	10,034				7.8		%
Warranty	63,042				65,432				(2,390		)			(3.7	)	%
Wholesale parts	39,398				36,483				2,915					8.0		%
Internal, sublet and other	93,030				85,213				7,817					9.2		%
Total	$	334,597			$	316,222			$	18,375				5.8		%
Gross profit:
Customer pay	$	75,404			$	68,425			$	6,979				10.2		%
Warranty	35,007				36,748				(1,741		)			(4.7	)	%
Wholesale parts	6,772				6,423				349					5.4		%
Internal, sublet and other	46,406				42,513				3,893					9.2		%
Total	$	163,589			$	154,109			$	9,480				6.2		%
Gross profit as a % of revenue:
Customer pay	54.2		%		53.0		%		120				bps
Warranty	55.5		%		56.2		%		(70		)		bps
Wholesale parts	17.2		%		17.6		%		(40		)		bps
Internal, sublet and other	49.9		%		49.9		%		—				bps
Total	48.9		%		48.7		%		20				bps
	Twelve Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands)
Same store Fixed Operations:
Revenue:
Customer pay	$	547,344			$	516,572			$	30,772				6.0		%
Warranty	264,282				250,750				13,532					5.4		%
Wholesale parts	154,166				152,030				2,136					1.4		%
Internal, sublet and other	362,114				345,513				16,601					4.8		%
Total	$	1,327,906			$	1,264,865			$	63,041				5.0		%
Gross profit:
Customer pay	$	297,894			$	275,387			$	22,507				8.2		%
Warranty	146,644				140,305				6,339					4.5		%
Wholesale parts	26,542				25,972				570					2.2		%
Internal, sublet and other	178,232				171,038				7,194					4.2		%
Total	$	649,312			$	612,702			$	36,610				6.0		%
Gross profit as a % of revenue:
Customer pay	54.4		%		53.3		%		110				bps
Warranty	55.5		%		56.0		%		(50		)		bps
Wholesale parts	17.2		%		17.1		%		10				bps
Internal, sublet and other	49.2		%		49.5		%		(30		)		bps
Total	48.9		%		48.4		%		50				bps

F&I - Franchised Dealerships Segment
	Three Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands, except unit and per unit data)
Reported F&I:
Revenue	$	96,946			$	90,341			$	6,605				7.3		%
Unit sales	56,700				57,340				(640		)			(1.1	)	%
Gross profit per retail unit (excludes fleet)	$	1,710			$	1,576			$	134				8.5		%
	Twelve Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands, except unit and per unit data)
Reported F&I:
Revenue	$	363,117			$	344,814			$	18,303				5.3		%
Unit sales	224,086				230,987				(6,901		)			(3.0	)	%
Gross profit per retail unit (excludes fleet)	$	1,620			$	1,493			$	127				8.5		%
	Three Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands, except unit and per unit data)
Same store F&I:
Revenue	$	91,628			$	80,579			$	11,049				13.7		%
Unit sales	55,594				51,778				3,816					7.4		%
Gross profit per retail unit (excludes fleet)	$	1,648			$	1,556			$	92				5.9		%
	Twelve Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands, except unit and per unit data)
Same store F&I:
Revenue	$	335,756			$	304,293			$	31,463				10.3		%
Unit sales	212,127				204,631				7,496					3.7		%
Gross profit per retail unit (excludes fleet)	$	1,583			$	1,487			$	96				6.5		%

Used Vehicles and F&I - EchoPark Segment
	Three Months Ended December 31,										Better / (Worse)
	2019					2018					Change					% Change
	(In thousands, except unit and per unit data)
Reported retail used vehicle and F&I:
Retail used vehicle revenue	$	265,286				$	179,486				$	85,800				47.8		%
Retail used vehicle gross profit (loss)	$	1,104				$	(1,794	)			$	2,898				(161.5	)	%
Retail used vehicle unit sales	12,676					8,762					3,914					44.7		%
Retail used vehicle revenue per unit	$	20,928				$	20,485				$	443				2.2		%
F&I revenue	$	28,576				$	19,292				$	9,284				48.1		%
Combined retail used vehicle gross profit and F&I revenue	$	29,680				$	17,498				$	12,182				69.6		%
Total retail used vehicle and F&I gross profit per unit	$	2,341				$	1,997				$	344				17.2		%
	Twelve Months Ended December 31,										Better / (Worse)
	2019					2018					Change					% Change
	(In thousands, except unit and per unit data)
Reported retail used vehicle and F&I:
Retail used vehicle revenue	$	996,505				$	602,699				$	393,806				65.3		%
Retail used vehicle gross profit (loss)	$	(146	)			$	(5,362	)			$	5,216				97.3		%
Retail used vehicle unit sales	49,520					29,437					20,083					68.2		%
Retail used vehicle revenue per unit	$	20,123				$	20,474				$	(351	)			(1.7	)	%
F&I revenue	$	113,834				$	60,709				$	53,125				87.5		%
Combined retail used vehicle gross profit and F&I revenue	$	113,688				$	55,347				$	58,341				105.4		%
Total retail used vehicle and F&I gross profit per unit	$	2,296				$	1,880				$	416				22.1		%
	Three Months Ended December 31,										Better / (Worse)
	2019					2018					Change					% Change
	(In thousands, except unit and per unit data)
Same store retail used vehicle and F&I:
Retail used vehicle revenue	$	223,669				$	168,442				$	55,227				32.8		%
Retail used vehicle gross profit (loss)	$	(116	)			$	(1,832	)			$	1,716				(93.7	)	%
Retail used vehicle unit sales	10,608					8,225					2,383					29.0		%
Retail used vehicle revenue per unit	$	21,085				$	20,479				$	606				3.0		%
F&I revenue	$	23,885				$	18,055				$	5,830				32.3		%
Combined retail used vehicle gross profit and F&I revenue	$	23,769				$	16,223				$	7,546				46.5		%
Total retail used vehicle and F&I gross profit per unit	$	2,241				$	1,972				$	269				13.6		%
	Twelve Months Ended December 31,										Better / (Worse)
	2019					2018					Change					% Change
	(In thousands, except unit and per unit data)
Same store retail used vehicle and F&I:
Retail used vehicle revenue	$	797,327				$	557,620				$	239,707				43.0		%
Retail used vehicle gross profit (loss)	$	(4,382	)			$	(4,344	)			$	(38	)			(0.9	)	%
Retail used vehicle unit sales	39,458					27,080					12,378					45.7		%
Retail used vehicle revenue per unit	$	20,207				$	20,592				$	(385	)			(1.9	)	%
F&I revenue	$	90,684				$	56,023				$	34,661				61.9		%
Combined retail used vehicle gross profit and F&I revenue	$	86,302				$	51,679				$	34,623				67.0		%
Total retail used vehicle and F&I gross profit per unit	$	2,187				$	1,908				$	279				14.6		%

Wholesale Vehicles - EchoPark Segment
	Three Months Ended December 31,										Better / (Worse)
	2019					2018					Change					% Change
	(In thousands, except unit and per unit data)
Reported wholesale vehicle:
Revenue	$	7,346				$	754				$	6,592				874.3		%
Gross profit (loss)	$	(92	)			$	(98	)			$	6				6.1		%
Unit sales	1,751					53					1,698					3,203.8		%
Revenue per unit	$	4,195				$	14,226				$	(10,031	)			(70.5	)	%
Gross profit (loss) per unit	$	(53	)			$	(1,849	)			$	1,796				97.1		%
Gross profit (loss) as a % of revenue	(1.3		)	%		(13.0		)	%		1,170					bps
	Twelve Months Ended December 31,										Better / (Worse)
	2019					2018					Change					% Change
	(In thousands, except unit and per unit data)
Reported wholesale vehicle:
Revenue	$	22,926				$	20,442				$	2,484				12.2		%
Gross profit (loss)	$	(332	)			$	530				$	(862	)			(162.6	)	%
Unit sales	5,774					3,552					2,222					62.6		%
Revenue per unit	$	3,971				$	5,755				$	(1,784	)			(31.0	)	%
Gross profit (loss) per unit	$	(57	)			$	149				$	(206	)			(138.3	)	%
Gross profit (loss) as a % of revenue	(1.4		)	%		2.6			%		(400		)			bps
	Three Months Ended December 31,										Better / (Worse)
	2019					2018					Change					% Change
	(In thousands, except unit and per unit data)
Same store wholesale vehicle:
Revenue	$	6,169				$	753				$	5,416				719.3		%
Gross profit (loss)	$	(86	)			$	(97	)			$	11				11.3		%
Unit sales	1,495					53					1,442					2,720.8		%
Revenue per unit	$	4,126				$	14,208				$	(10,082	)			(71.0	)	%
Gross profit (loss) per unit	$	(58	)			$	(1,830	)			$	1,772				96.8		%
Gross profit (loss) as a % of revenue	(1.4		)	%		(12.9		)	%		1,150					bps
	Twelve Months Ended December 31,										Better / (Worse)
	2019					2018					Change					% Change
	(In thousands, except unit and per unit data)
Same store wholesale vehicle:
Revenue	$	18,446				$	15,848				$	2,598				16.4		%
Gross profit (loss)	$	(300	)			$	528				$	(828	)			(156.8	)	%
Unit sales	4,675					2,662					2,013					75.6		%
Revenue per unit	$	3,946				$	5,953				$	(2,007	)			(33.7	)	%
Gross profit (loss) per unit	$	(64	)			$	198				$	(262	)			(132.3	)	%
Gross profit (loss) as a % of revenue	(1.6		)	%		3.3			%		(490		)			bps

Fixed Operations - EchoPark Segment
	Three Months Ended December 31,										Better / (Worse)
	2019					2018					Change					% Change
	(In thousands)
Reported Fixed Operations:
Revenue	$	7,346				$	3,057				$	4,289				140.3		%
Gross profit (loss)	$	(354	)			$	(242	)			$	(112	)			46.3		%
Gross profit (loss) as a % of revenue	(4.8		)	%		(7.9		)	%		310					bps
	Twelve Months Ended December 31,										Better / (Worse)
	2019					2018					Change					% Change
	(In thousands)
Reported Fixed Operations:
Revenue	$	28,753				$	16,328				$	12,425				76.1		%
Gross profit (loss)	$	(943	)			$	2,144				$	(3,087	)			(144.0	)	%
Gross profit (loss) as a % of revenue	(3.3		)	%		13.1			%		(1,640		)			bps
	Three Months Ended December 31,										Better / (Worse)
	2019					2018					Change					% Change
	(In thousands)
Same store Fixed Operations:
Revenue	$	6,058				$	2,814				$	3,244				115.3		%
Gross profit (loss)	$	(288	)			$	(238	)			$	(50	)			21.0		%
Gross profit (loss) as a % of revenue	(4.8		)	%		(8.5		)	%		370					bps
	Twelve Months Ended December 31,										Better / (Worse)
	2019					2018					Change					% Change
	(In thousands)
Same store Fixed Operations:
Revenue	$	22,952				$	14,508				$	8,444				58.2		%
Gross profit (loss)	$	(768	)			$	1,845				$	(2,613	)			(141.6	)	%
Gross profit (loss) as a % of revenue	(3.3		)	%		12.7			%		(1,600		)			bps

Segment Income (Loss)
	Three Months Ended December 31,										Better / (Worse)
	2019					2018					Change					% Change
	(In thousands)
Segment income (loss):
Franchised Dealerships Segment	$	76,541				$	51,440				$	25,101				48.8		%
EchoPark Segment	2,099					(4,695		)			6,794					144.7		%
Total segment income (loss)	$	78,640				$	46,745				$	31,895				68.2		%
Impairment charges	(17,692		)			(15,553		)			(2,139		)			(13.8	)	%
Income (loss) from continuing operations before taxes	$	60,948				$	31,192				$	29,756				95.4		%
	Twelve Months Ended December 31,										Better / (Worse)
	2019					2018					Change					% Change
	(In thousands)
Segment income (loss):
Franchised Dealerships Segment	$	211,267				$	157,413				$	53,854				34.2		%
EchoPark Segment	9,146					(52,587		)			61,733					117.4		%
Total segment income (loss)	$	220,413				$	104,826				$	115,587				110.3		%
Impairment charges	(20,768		)			(29,514		)			8,746					29.6		%
Income (loss) from continuing operations before taxes	$	199,645				$	75,312				$	124,333				165.1		%

Selling, General and Administrative (“SG&A”) Expenses - Non-GAAP Reconciliation
	Three Months Ended December 31,								Better / (Worse)
	2019				2018				Change					% Change
	(In thousands)
Reported:
Compensation	$	184,455			$	166,950			$	(17,505	)			(10.5	)	%
Advertising	14,522				16,196				1,674					10.3		%
Rent	13,303				13,753				450					3.3		%
Other	48,641				77,016				28,375					36.8		%
Total SG&A expenses	$	260,921			$	273,915			$	12,994				4.7		%
Items of interest:
Gain on franchise disposals	$	29,303			$	—
Lease exit adjustments	—				800
Total SG&A adjustments	$	29,303			$	800
Adjusted:
Total adjusted SG&A expenses	$	290,224			$	274,715			$	(15,509	)			(5.6	)	%
Reported:
SG&A expenses as a % of gross profit:
Compensation	46.8		%		45.0		%		(180		)		bps
Advertising	3.7		%		4.4		%		70				bps
Rent	3.4		%		3.7		%		30				bps
Other	12.3		%		20.8		%		850				bps
Total SG&A expenses as a % of gross profit	66.2		%		73.9		%		770				bps
Items of interest:
Gain on franchise disposals	7.5		%		—		%
Lease exit adjustments	—		%		0.2		%
Total effect of adjustments	7.5		%		0.2		%
Adjusted:
Total adjusted SG&A expenses as a % of gross profit	73.7		%		74.1		%		40				bps

SG&A Expenses - Non-GAAP Reconciliation (Continued)
	Twelve Months Ended December 31,										Better / (Worse)
	2019					2018					Change					% Change
	(In thousands)
Reported:
Compensation	$	733,925				$	725,022				$	(8,903	)			(1.2	)	%
Advertising	60,831					63,134					2,303					3.6		%
Rent	54,611					64,204					9,593					14.9		%
Other	250,007					292,965					42,958					14.7		%
Total SG&A expenses	$	1,099,374				$	1,145,325				$	45,951				4.0		%
Items of interest:
Legal and storm damage charges	$	—				$	(5,749	)
Long-term compensation charges	—					(32,522		)
Executive transition costs	(6,264		)			(1,581		)
Lease exit adjustments	—					(1,435		)
Gain on franchise disposals	75,983					38,893
Total SG&A adjustments	$	69,719				$	(2,394	)
Adjusted:
Total adjusted SG&A expenses	$	1,169,093				$	1,142,931				$	(26,162	)			(2.3	)	%
Reported:
SG&A expenses as a % of gross profit:
Compensation	48.3			%		50.1			%		180				bps
Advertising	4.0			%		4.4			%		40				bps
Rent	3.6			%		4.4			%		80				bps
Other	16.4			%		20.3			%		390				bps
Total SG&A expenses as a % of gross profit	72.3			%		79.2			%		690				bps
Items of interest:
Legal and storm damage charges	—			%		(0.5		)	%
Long-term compensation charges	—			%		(2.7		)	%
Executive transition costs	(0.4		)	%		(0.1		)	%
Lease exit adjustments	—			%		(0.1		)	%
Gain on franchise disposals	5.0			%		3.2			%
Total effect of adjustments	4.6			%		(0.2		)	%
Adjusted:
Total adjusted SG&A expenses as a % of gross profit	76.9			%		79.0			%		210				bps

Earnings Per Share from Continuing Operations - Non-GAAP Reconciliation
	Three Months Ended December 31, 2019											Three Months Ended December 31, 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	44,463			$	46,272			$	1.04			42,911			$	21,981			$	0.51
Pre-tax items of interest:
Gain on franchise disposals				$	(29,303)										$	—
Lease exit adjustments				—											(800)
Impairment charges				17,692											15,553
Loss on debt extinguishment				7,157											—
Total pre-tax items of interest				$	(4,454)										$	14,753
Tax effect of above items				$	1,292										$	(4,020)
Adjusted diluted earnings (loss) and shares from continuing operations	44,463			$	43,110			$	0.97			42,911			$	32,714			$	0.76

	Twelve Months Ended December 31, 2019											Twelve Months Ended December 31, 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	43,710			$	144,537			$	3.31			42,950			$	52,390			$	1.22
Pre-tax items of interest:
Gain on franchise disposals				$	(75,983)										$	(38,893)
Legal and storm damage charges				—											5,749
Long-term compensation charges				—											32,522
Executive transition costs				6,264											1,581
Impairment charges				19,618											29,512
Loss on debt extinguishment				7,157											—
Lease exit adjustments				—											1,435
Total pre-tax items of interest				$	(42,944)										$	31,906
Tax effect of above items				$	14,193										$	(8,694)
Non-recurring tax items				$	—										$	1,313
Adjusted diluted earnings (loss) and shares from continuing operations	43,710			$	115,786			$	2.65			42,950			$	76,914			$	1.79

Adjusted EBITDA - Non-GAAP Reconciliation
	Three Months Ended December 31, 2019																Three Months Ended December 31, 2018
	Franchised Dealerships Segment				EchoPark Segment				Discontinued Operations				Total				Franchised Dealerships Segment				EchoPark Segment				Discontinued Operations				Total
	(In thousands)
Net income (loss)													$	46,307															$	21,821
Provision for income taxes													14,703																9,150
Income (loss) before taxes	$	75,466			$	(14,518)			$	62			$	61,010			$	37,388			$	(6,196)			$	(221)			$	30,971
Non-floor plan interest	12,335				435				—				12,770				12,902				423				89				13,414
Depreciation and amortization	20,972				2,765				—				23,737				21,087				2,210				—				23,297
Stock-based compensation expense	2,690				—				—				2,690				1,264				—				—				1,264
Loss (gain) on exit of leased dealerships	—				—				—				—				(1,080)				3				89				(988)
Impairment charges	1,075				16,617				—				17,692				14,053				1,500				—				15,553
Loss on debt extinguishment	6,690				—				—				6,690				—				—				—				—
Gain on franchise disposals	(29,242)				—				—				(29,242)				(158)				—				—				(158)
Adjusted EBITDA	$	89,986			$	5,299			$	62			$	95,347			$	85,456			$	(2,060)			$	(43)			$	83,353

	Twelve Months Ended December 31, 2019																Twelve Months Ended December 31, 2018
	Franchised Dealerships Segment				EchoPark Segment				Discontinued Operations				Total				Franchised Dealerships Segment				EchoPark Segment				Discontinued Operations				Total
	(In thousands)
Net income (loss)													$	144,137															$	51,650
Provision for income taxes													54,954																22,645
Income (loss) before taxes	$	210,167			$	(10,522)			$	(554)			$	199,091			$	129,481			$	(54,169)			$	(1,017)			$	74,295
Non-floor plan interest	48,774				1,701				—				$	50,475			50,000				1,641				408				52,049
Depreciation and amortization	85,093				10,553				—				95,646				88,857				7,795				—				96,652
Stock-based compensation expense	10,797				—				—				10,797				11,853				—				—				11,853
Loss (gain) on exit of leased dealerships	(170)				—				—				(170)				1,281				20				408				1,709
Impairment charges	1,101				19,667				—				20,768				27,931				1,583				—				29,514
Loss on debt extinguishment	6,690				—				—				6,690				—				—				—				—
Long-term compensation charges	—				—				—				—				—				32,522				—				32,522
Gain on franchise disposals	(74,812)				—				—				(74,812)				(39,307)				—				—				(39,307)
Adjusted EBITDA	$	287,640			$	21,399			$	(554)			$	308,485			$	270,096			$	(10,608)			$	(201)			$	259,287

 

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