Delaware | 56-2010790 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
4401 Colwick Road Charlotte, North Carolina | 28211 | |||||||
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
Page | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 6. | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
(Dollars and shares in thousands, except per share amounts) | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
New vehicles | $ | $ | $ | $ | |||||||||||||||||||
Used vehicles | |||||||||||||||||||||||
Wholesale vehicles | |||||||||||||||||||||||
Total vehicles | |||||||||||||||||||||||
Parts, service and collision repair | |||||||||||||||||||||||
Finance, insurance and other, net | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Cost of Sales: | |||||||||||||||||||||||
New vehicles | ( | ( | ( | ( | |||||||||||||||||||
Used vehicles | ( | ( | ( | ( | |||||||||||||||||||
Wholesale vehicles | ( | ( | ( | ( | |||||||||||||||||||
Total vehicles | ( | ( | ( | ( | |||||||||||||||||||
Parts, service and collision repair | ( | ( | ( | ( | |||||||||||||||||||
Total cost of sales | ( | ( | ( | ( | |||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general and administrative expenses | ( | ( | ( | ( | |||||||||||||||||||
Impairment charges | ( | ( | ( | ||||||||||||||||||||
Depreciation and amortization | ( | ( | ( | ( | |||||||||||||||||||
Operating income (loss) | |||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest expense, floor plan | ( | ( | ( | ( | |||||||||||||||||||
Interest expense, other, net | ( | ( | ( | ( | |||||||||||||||||||
Other income (expense), net | ( | ||||||||||||||||||||||
Total other income (expense) | ( | ( | ( | ( | |||||||||||||||||||
Income (loss) from continuing operations before taxes | |||||||||||||||||||||||
Provision for income taxes for continuing operations - benefit (expense) | ( | ( | ( | ( | |||||||||||||||||||
Income (loss) from continuing operations | |||||||||||||||||||||||
Discontinued operations: | |||||||||||||||||||||||
Income (loss) from discontinued operations before taxes | ( | ( | ( | ( | |||||||||||||||||||
Provision for income taxes for discontinued operations - benefit (expense) | |||||||||||||||||||||||
Income (loss) from discontinued operations | ( | ( | ( | ( | |||||||||||||||||||
Net income (loss) | $ | $ | $ | $ | |||||||||||||||||||
Basic earnings (loss) per common share: | |||||||||||||||||||||||
Earnings (loss) per share from continuing operations | $ | $ | $ | $ | |||||||||||||||||||
Earnings (loss) per share from discontinued operations | ( | ( | ( | ||||||||||||||||||||
Earnings (loss) per common share | $ | $ | $ | $ | |||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
Diluted earnings (loss) per common share: | |||||||||||||||||||||||
Earnings (loss) per share from continuing operations | $ | $ | $ | $ | |||||||||||||||||||
Earnings (loss) per share from discontinued operations | ( | ( | ( | ( | |||||||||||||||||||
Earnings (loss) per common share | $ | $ | $ | $ | |||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
Dividends declared per common share | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Net income (loss) | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss) before taxes: | |||||||||||||||||||||||
Change in fair value of interest rate swap and interest rate cap agreements | |||||||||||||||||||||||
Provision for income tax benefit (expense) related to | |||||||||||||||||||||||
components of other comprehensive income (loss) | ( | ( | ( | ( | |||||||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||
Comprehensive income (loss) | $ | $ | $ | $ |
September 30, 2018 | December 31, 2017 | ||||||||||
(Dollars in thousands) | |||||||||||
ASSETS | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Receivables, net | |||||||||||
Inventories | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property and Equipment, net | |||||||||||
Goodwill | |||||||||||
Other Intangible Assets, net | |||||||||||
Other Assets | |||||||||||
Total Assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current Liabilities: | |||||||||||
Notes payable - floor plan - trade | $ | $ | |||||||||
Notes payable - floor plan - non-trade | |||||||||||
Trade accounts payable | |||||||||||
Accrued interest | |||||||||||
Other accrued liabilities | |||||||||||
Current maturities of long-term debt | |||||||||||
Total current liabilities | |||||||||||
Long-Term Debt | |||||||||||
Other Long-Term Liabilities | |||||||||||
Deferred Income Taxes | |||||||||||
Commitments and Contingencies | |||||||||||
Stockholders’ Equity: | |||||||||||
Class A Convertible Preferred Stock, none issued | |||||||||||
Class A Common Stock, $0.01 par value; 100,000,000 shares authorized; 64,197,385 shares issued and 30,721,226 shares outstanding at September 30, 2018; 63,456,698 shares issued and 31,166,205 shares outstanding at December 31, 2017 | |||||||||||
Class B Common Stock, $0.01 par value; 30,000,000 shares authorized; 12,029,375 shares issued and outstanding at September 30, 2018 and December 31, 2017 | |||||||||||
Paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive income (loss) | |||||||||||
Treasury stock, at cost; 33,476,159 Class A Common Stock shares held at September 30, 2018 and 32,290,493 Class A Common Stock shares held at December 31, 2017 | ( | ( | |||||||||
Total Stockholders’ Equity | |||||||||||
Total Liabilities and Stockholders’ Equity | $ | $ |
Class A Common Stock | Class A Treasury Stock | Class B Common Stock | Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | $ | ( | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shares awarded under stock compensation plans | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock | — | — | ( | ( | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of interest rate swap and interest rate cap agreements, net of tax expense of $1,563 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock amortization | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of change in accounting principle (1) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2018 | $ | ( | $ | ( | $ | $ | $ | $ | $ |
Nine Months Ended September 30, | |||||||||||
2018 | 2017 | ||||||||||
(Dollars in thousands) | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income (loss) | $ | $ | |||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization of property and equipment | |||||||||||
Provision for bad debt expense | |||||||||||
Other amortization | |||||||||||
Debt issuance cost amortization | |||||||||||
Debt discount amortization, net of premium amortization | |||||||||||
Stock-based compensation expense | |||||||||||
Deferred income taxes | ( | ||||||||||
Net distributions from equity investee | ( | ||||||||||
Asset impairment charges | |||||||||||
Loss (gain) on disposal of dealerships and property and equipment | ( | ( | |||||||||
Loss (gain) on exit of leased dealerships | |||||||||||
Loss (gain) on retirement of debt | |||||||||||
Changes in assets and liabilities that relate to operations: | |||||||||||
Receivables | |||||||||||
Inventories | ( | ||||||||||
Other assets | ( | ||||||||||
Notes payable - floor plan - trade | ( | ( | |||||||||
Trade accounts payable and other liabilities | ( | ( | |||||||||
Total adjustments | |||||||||||
Net cash provided by (used in) operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchase of businesses, net of cash acquired | ( | ||||||||||
Purchases of land, property and equipment | ( | ( | |||||||||
Proceeds from sales of property and equipment | |||||||||||
Proceeds from sales of dealerships | |||||||||||
Net cash provided by (used in) investing activities | ( | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Net (repayments) borrowings on notes payable - floor plan - non-trade | ( | ( | |||||||||
Borrowings on revolving credit facilities | |||||||||||
Repayments on revolving credit facilities | ( | ( | |||||||||
Proceeds from issuance of long-term debt | |||||||||||
Debt issuance costs | ( | ( | |||||||||
Principal payments and repurchase of long-term debt | ( | ( | |||||||||
Repurchase of debt securities | ( | ||||||||||
Purchases of treasury stock | ( | ( | |||||||||
Issuance of shares under stock compensation plans | |||||||||||
Dividends paid | ( | ( | |||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | |||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | |||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | $ | |||||||||
SUPPLEMENTAL SCHEDULE OF NON-CASH FINANCING ACTIVITIES: | |||||||||||
Change in fair value of interest rate swap and interest rate cap agreements (net of tax expense of $1,563 and $1,099 in the nine months ended September 30, 2018 and 2017, respectively) | $ | $ | |||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||||||
Cash paid (received) during the period for: | |||||||||||
Interest, including amount capitalized | $ | $ | |||||||||
Income taxes | $ | $ |
Pre-ASC 606 Results | Effects of Adoption of ASC 606 | As Reported | |||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
Income Statement | September 30, 2018 | September 30, 2018 | |||||||||||||||
(In thousands) | |||||||||||||||||
Revenues: | |||||||||||||||||
Parts, service and collision repair | $ | $ | $ | ||||||||||||||
Finance, insurance and other, net | |||||||||||||||||
Total revenues | $ | $ | $ | ||||||||||||||
Cost of Sales: | |||||||||||||||||
Parts, service and collision repair | $ | ( | $ | ( | $ | ( | |||||||||||
Selling, general and administrative expenses | $ | ( | $ | ( | $ | ( | |||||||||||
Operating income (loss): | $ | $ | $ |
Pre-ASC 606 Results | Effects of Adoption of ASC 606 | As Reported | |||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||
Income Statement | September 30, 2018 | September 30, 2018 | |||||||||||||||
(In thousands) | |||||||||||||||||
Revenues: | |||||||||||||||||
Parts, service and collision repair | $ | $ | $ | ||||||||||||||
Finance, insurance and other, net | |||||||||||||||||
Total revenues | $ | $ | $ | ||||||||||||||
Cost of Sales: | |||||||||||||||||
Parts, service and collision repair | $ | ( | $ | ( | $ | ( | |||||||||||
Selling, general and administrative expenses | $ | ( | $ | ( | $ | ( | |||||||||||
Operating income (loss): | $ | $ | $ |
Balance Sheet | December 31, 2017 | Effects of Adoption of ASC 606 | January 1, 2018 | ||||||||||||||
(In thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Receivables, net | $ | $ | $ | ||||||||||||||
Contract assets (1) | |||||||||||||||||
Liabilities: | |||||||||||||||||
Other accrued liabilities | $ | $ | $ | ||||||||||||||
Deferred income taxes | |||||||||||||||||
Stockholders’ Equity: | |||||||||||||||||
Retained earnings | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Income (loss) from operations | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Lease exit accrual adjustments and charges | ( | ( | ( | ( | |||||||||||||||||||
Pre-tax income (loss) | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Total revenues | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Income (loss) from operations | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Gain (loss) on disposal | ( | ||||||||||||||||||||||
Lease exit accrual adjustments and charges | ( | ( | |||||||||||||||||||||
Pre-tax income (loss) | $ | ( | $ | $ | $ | ||||||||||||||||||
Total revenues | $ | $ | $ | $ |
September 30, 2018 | December 31, 2017 | ||||||||||
(In thousands) | |||||||||||
New vehicles | $ | $ | |||||||||
Used vehicles | |||||||||||
Service loaners | |||||||||||
Parts, accessories and other | |||||||||||
Net inventories | $ | $ |
September 30, 2018 | December 31, 2017 | ||||||||||
(In thousands) | |||||||||||
Land | $ | $ | |||||||||
Building and improvements | |||||||||||
Software and computer equipment | |||||||||||
Parts and service equipment | |||||||||||
Office equipment and fixtures | |||||||||||
Company vehicles | |||||||||||
Construction in progress | |||||||||||
Total, at cost | |||||||||||
Less accumulated depreciation | ( | ( | |||||||||
Subtotal | |||||||||||
Less assets held for sale (1) | ( | ( | |||||||||
Property and equipment, net | $ | $ |
September 30, 2018 | December 31, 2017 | ||||||||||
(In thousands) | |||||||||||
2016 Revolving Credit Facility (1) | $ | $ | |||||||||
5.0% Senior Subordinated Notes due 2023 (the “5.0% Notes”) | |||||||||||
6.125% Senior Subordinated Notes due 2027 (the “6.125% Notes”) | |||||||||||
Mortgage notes to finance companies - fixed rate, bearing interest from 3.51% to 7.03% | |||||||||||
Mortgage notes to finance companies - variable rate, bearing interest at 1.50 to 2.90 percentage points above one-month or three-month LIBOR | |||||||||||
Debt issuance costs | ( | ( | |||||||||
Other | |||||||||||
Total debt | $ | $ | |||||||||
Less current maturities | ( | ( | |||||||||
Long-term debt | $ | $ |
Covenant | |||||||||||||||||
Minimum Consolidated Liquidity Ratio | Minimum Consolidated Fixed Charge Coverage Ratio | Maximum Consolidated Total Lease Adjusted Leverage Ratio | |||||||||||||||
Required ratio | |||||||||||||||||
September 30, 2018 actual |
Notional Amount | Pay Rate (1) | Receive Rate (2) | Start Date | End Date | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
$ | one-month LIBOR | September 1, 2017 | June 30, 2018 | |||||||||||||||||||||||
$ | one-month LIBOR | July 1, 2018 | June 30, 2019 | |||||||||||||||||||||||
$ | one-month LIBOR | July 1, 2018 | June 30, 2019 | |||||||||||||||||||||||
$ | one-month LIBOR | July 1, 2019 | June 30, 2020 | |||||||||||||||||||||||
$ | one-month LIBOR | July 1, 2019 | June 30, 2020 | |||||||||||||||||||||||
$ | one-month LIBOR | July 1, 2020 | June 30, 2021 | |||||||||||||||||||||||
$ | one-month LIBOR | July 1, 2020 | July 1, 2021 | |||||||||||||||||||||||
$ | one-month LIBOR | July 1, 2021 | July 1, 2022 |
Three Months Ended September 30, 2018 | |||||||||||||||||||||||||||||||||||||||||
Income (Loss) | Income (Loss) | ||||||||||||||||||||||||||||||||||||||||
From Continuing Operations | From Discontinued Operations | Net Income (Loss) | |||||||||||||||||||||||||||||||||||||||
Weighted Average Shares | Amount | Per Share Amount | Amount | Per Share Amount | Amount | Per Share Amount | |||||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||||||||
Earnings (loss) and shares | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Effect of participating securities: | |||||||||||||||||||||||||||||||||||||||||
Non-vested restricted stock | ( | ( | |||||||||||||||||||||||||||||||||||||||
Basic earnings (loss) and shares | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||||||||||||||||||||
Stock compensation plans | |||||||||||||||||||||||||||||||||||||||||
Diluted earnings (loss) and shares | $ | $ | $ | ( | $ | ( | $ | $ |
Three Months Ended September 30, 2017 | |||||||||||||||||||||||||||||||||||||||||
Income (Loss) | Income (Loss) | ||||||||||||||||||||||||||||||||||||||||
From Continuing Operations | From Discontinued Operations | Net Income (Loss) | |||||||||||||||||||||||||||||||||||||||
Weighted Average Shares | Amount | Per Share Amount | Amount | Per Share Amount | Amount | Per Share Amount | |||||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||||||||
Earnings (loss) and shares | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Effect of participating securities: | |||||||||||||||||||||||||||||||||||||||||
Non-vested restricted stock | ( | ( | |||||||||||||||||||||||||||||||||||||||
Basic earnings (loss) and shares | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||||||||||||||||||||
Stock compensation plans | |||||||||||||||||||||||||||||||||||||||||
Diluted earnings (loss) and shares | $ | $ | $ | ( | $ | ( | $ | $ |
Nine Months Ended September 30, 2018 | |||||||||||||||||||||||||||||||||||||||||
Income (Loss) | Income (Loss) | ||||||||||||||||||||||||||||||||||||||||
From Continuing Operations | From Discontinued Operations | Net Income (Loss) | |||||||||||||||||||||||||||||||||||||||
Weighted Average Shares | Amount | Per Share Amount | Amount | Per Share Amount | Amount | Per Share Amount | |||||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||||||||
Earnings (loss) and shares | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Effect of participating securities: | |||||||||||||||||||||||||||||||||||||||||
Non-vested restricted stock | ( | ( | |||||||||||||||||||||||||||||||||||||||
Basic earnings (loss) and shares | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||||||||||||||||||||
Stock compensation plans | |||||||||||||||||||||||||||||||||||||||||
Diluted earnings (loss) and shares | $ | $ | $ | ( | $ | ( | $ | $ |
Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||||||||||||||||||
Income (Loss) | Income (Loss) | ||||||||||||||||||||||||||||||||||||||||
From Continuing Operations | From Discontinued Operations | Net Income (Loss) | |||||||||||||||||||||||||||||||||||||||
Weighted Average Shares | Amount | Per Share Amount | Amount | Per Share Amount | Amount | Per Share Amount | |||||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||||||||
Earnings (loss) and shares | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Effect of participating securities: | |||||||||||||||||||||||||||||||||||||||||
Non-vested restricted stock | ( | ( | |||||||||||||||||||||||||||||||||||||||
Basic earnings (loss) and shares | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||||||||||||||||||||
Stock compensation plans | |||||||||||||||||||||||||||||||||||||||||
Diluted earnings (loss) and shares | $ | $ | $ | ( | $ | ( | $ | $ |
(In thousands) | |||||
Balance at December 31, 2017 | $ | ||||
Lease exit expense (1) | |||||
Payments (2) | ( | ||||
Lease buyout/other (3) | ( | ||||
Balance at September 30, 2018 | $ |
Fair Value Based on Significant Other Observable Inputs (Level 2) | |||||||||||
September 30, 2018 | December 31, 2017 | ||||||||||
(In thousands) | |||||||||||
Assets: | |||||||||||
Cash surrender value of life insurance policies (1) | $ | $ | |||||||||
Cash flow swaps and interest rate caps designated as hedges (2) | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities: | |||||||||||
Cash flow swaps and interest rate caps designated as hedges (3) | $ | $ | |||||||||
Deferred compensation plan (4) | |||||||||||
Total liabilities | $ | $ |
September 30, 2018 | December 31, 2017 | ||||||||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
5.0% Notes (1) | $ | $ | $ | $ | |||||||||||||||||||
6.125% Notes (1) | $ | $ | $ | $ | |||||||||||||||||||
Mortgage Notes (2) | $ | $ | $ | $ | |||||||||||||||||||
Other (2) | $ | $ | $ | $ |
Gains and Losses on Cash Flow Hedges | Defined Benefit Pension Plan | Total Accumulated Other Comprehensive Income (Loss) | |||||||||||||||
(In thousands) | |||||||||||||||||
Balance at December 31, 2017 | $ | $ | ( | $ | |||||||||||||
Other comprehensive income (loss) before reclassifications (1) | |||||||||||||||||
Amounts reclassified out of accumulated other comprehensive income (loss) (2) | |||||||||||||||||
Net current-period other comprehensive income (loss) | |||||||||||||||||
Balance at September 30, 2018 | $ | $ | ( | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Franchised Dealerships Segment | $ | $ | $ | $ | |||||||||||||||||||
EchoPark Segment | |||||||||||||||||||||||
Total consolidated revenues | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Segment income (loss) (1): | |||||||||||||||||||||||
Franchised Dealerships Segment (2) | $ | $ | $ | $ | |||||||||||||||||||
EchoPark Segment (3) | ( | ( | ( | ( | |||||||||||||||||||
Total segment income (loss) | |||||||||||||||||||||||
Interest expense, other, net | ( | ( | ( | ( | |||||||||||||||||||
Other income (expense), net | ( | ||||||||||||||||||||||
Income (loss) from continuing operations before taxes | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
Brand | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||
Luxury: | |||||||||||||||||||||||
BMW | 19.7 | % | 17.2 | % | 19.4 | % | 19.1 | % | |||||||||||||||
Mercedes | 9.4 | % | 9.5 | % | 10.4 | % | 10.1 | % | |||||||||||||||
Lexus | 6.7 | % | 6.4 | % | 6.1 | % | 5.9 | % | |||||||||||||||
Audi | 6.4 | % | 6.2 | % | 6.4 | % | 5.7 | % | |||||||||||||||
Land Rover | 4.1 | % | 3.3 | % | 4.4 | % | 3.4 | % | |||||||||||||||
Porsche | 2.6 | % | 2.5 | % | 2.5 | % | 2.5 | % | |||||||||||||||
Cadillac | 2.0 | % | 2.6 | % | 2.3 | % | 2.7 | % | |||||||||||||||
MINI | 1.6 | % | 1.3 | % | 1.4 | % | 1.4 | % | |||||||||||||||
Other luxury (1) | 3.0 | % | 3.2 | % | 2.8 | % | 2.8 | % | |||||||||||||||
Total Luxury | 55.5 | % | 52.2 | % | 55.7 | % | 53.6 | % | |||||||||||||||
Mid-line Import: | |||||||||||||||||||||||
Honda | 18.2 | % | 17.8 | % | 17.7 | % | 18.1 | % | |||||||||||||||
Toyota | 10.5 | % | 12.6 | % | 10.5 | % | 12.1 | % | |||||||||||||||
Volkswagen | 2.1 | % | 1.9 | % | 2.1 | % | 1.7 | % | |||||||||||||||
Hyundai | 1.9 | % | 1.5 | % | 1.7 | % | 1.5 | % | |||||||||||||||
Other imports (2) | 1.8 | % | 1.5 | % | 1.8 | % | 1.5 | % | |||||||||||||||
Total Mid-line Import | 34.5 | % | 35.3 | % | 33.8 | % | 34.9 | % | |||||||||||||||
Domestic: | |||||||||||||||||||||||
Ford | 5.4 | % | 7.7 | % | 5.8 | % | 7.0 | % | |||||||||||||||
General Motors (3) | 4.6 | % | 4.8 | % | 4.7 | % | 4.5 | % | |||||||||||||||
Total Domestic | 10.0 | % | 12.5 | % | 10.5 | % | 11.5 | % | |||||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Three Months Ended September 30, | Better / (Worse) | Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||||||||||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | ||||||||||||||||||||||||||||||
(In millions of vehicles) | |||||||||||||||||||||||||||||||||||
Retail SAAR (1) | 13.7 | 14.1 | (2.8) | % | 13.5 | 13.8 | (2.2) | % | |||||||||||||||||||||||||||
Fleet SAAR | 3.2 | 3.0 | 6.7 | % | 3.6 | 3.2 | 12.5 | % | |||||||||||||||||||||||||||
Total SAAR (2) | 16.9 | 17.1 | (1.2) | % | 17.1 | 17.0 | 0.6 | % |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit data) | |||||||||||||||||||||||
Total new vehicle revenue: | |||||||||||||||||||||||
Same store | $ | 1,235,103 | $ | 1,288,932 | $ | (53,829) | (4.2) | % | |||||||||||||||
Acquisitions, open points and dispositions | (9) | 73,369 | (73,378) | NM | |||||||||||||||||||
Total as reported | $ | 1,235,094 | $ | 1,362,301 | $ | (127,207) | (9.3) | % | |||||||||||||||
Total new vehicle gross profit: | |||||||||||||||||||||||
Same store | $ | 61,106 | $ | 63,590 | $ | (2,484) | (3.9) | % | |||||||||||||||
Acquisitions, open points and dispositions | 535 | 2,648 | (2,113) | NM | |||||||||||||||||||
Total as reported | $ | 61,641 | $ | 66,238 | $ | (4,597) | (6.9) | % | |||||||||||||||
Total new vehicle unit sales: | |||||||||||||||||||||||
Same store | 31,010 | 33,162 | (2,152) | (6.5) | % | ||||||||||||||||||
Acquisitions, open points and dispositions | (1) | 2,327 | (2,328) | NM | |||||||||||||||||||
Total as reported | 31,009 | 35,489 | (4,480) | (12.6) | % | ||||||||||||||||||
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit data) | |||||||||||||||||||||||
Total new vehicle revenue: | |||||||||||||||||||||||
Same store | $ | 3,588,102 | $ | 3,590,192 | $ | (2,090) | (0.1) | % | |||||||||||||||
Acquisitions, open points and dispositions | 66,408 | 219,110 | (152,702) | NM | |||||||||||||||||||
Total as reported | $ | 3,654,510 | $ | 3,809,302 | $ | (154,792) | (4.1) | % | |||||||||||||||
Total new vehicle gross profit: | |||||||||||||||||||||||
Same store | $ | 173,825 | $ | 180,889 | $ | (7,064) | (3.9) | % | |||||||||||||||
Acquisitions, open points and dispositions | 1,883 | 6,149 | (4,266) | NM | |||||||||||||||||||
Total as reported | $ | 175,708 | $ | 187,038 | $ | (11,330) | (6.1) | % | |||||||||||||||
Total new vehicle unit sales: | |||||||||||||||||||||||
Same store | 89,414 | 92,135 | (2,721) | (3.0) | % | ||||||||||||||||||
Acquisitions, open points and dispositions | 1,972 | 6,997 | (5,025) | NM | |||||||||||||||||||
Total as reported | 91,386 | 99,132 | (7,746) | (7.8) | % | ||||||||||||||||||
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Reported new vehicle: | |||||||||||||||||||||||
Revenue | $ | 1,235,094 | $ | 1,362,301 | $ | (127,207) | (9.3) | % | |||||||||||||||
Gross profit | $ | 61,641 | $ | 66,238 | $ | (4,597) | (6.9) | % | |||||||||||||||
Unit sales | 31,009 | 35,489 | (4,480) | (12.6) | % | ||||||||||||||||||
Revenue per unit | $ | 39,830 | $ | 38,387 | $ | 1,443 | 3.8 | % | |||||||||||||||
Gross profit per unit | $ | 1,988 | $ | 1,866 | $ | 122 | 6.5 | % | |||||||||||||||
Gross profit as a % of revenue | 5.0 | % | 4.9 | % | 10 | bps |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Reported new vehicle: | |||||||||||||||||||||||
Revenue | $ | 3,654,510 | $ | 3,809,302 | $ | (154,792) | (4.1) | % | |||||||||||||||
Gross profit | $ | 175,708 | $ | 187,038 | $ | (11,330) | (6.1) | % | |||||||||||||||
Unit sales | 91,386 | 99,132 | (7,746) | (7.8) | % | ||||||||||||||||||
Revenue per unit | $ | 39,990 | $ | 38,427 | $ | 1,563 | 4.1 | % | |||||||||||||||
Gross profit per unit | $ | 1,923 | $ | 1,887 | $ | 36 | 1.9 | % | |||||||||||||||
Gross profit as a % of revenue | 4.8 | % | 4.9 | % | (10) | bps |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Same store new vehicle: | |||||||||||||||||||||||
Revenue | $ | 1,235,103 | $ | 1,288,932 | $ | (53,829) | (4.2) | % | |||||||||||||||
Gross profit | $ | 61,106 | $ | 63,590 | $ | (2,484) | (3.9) | % | |||||||||||||||
Unit sales | 31,010 | 33,162 | (2,152) | (6.5) | % | ||||||||||||||||||
Revenue per unit | $ | 39,829 | $ | 38,868 | $ | 961 | 2.5 | % | |||||||||||||||
Gross profit per unit | $ | 1,971 | $ | 1,918 | $ | 53 | 2.8 | % | |||||||||||||||
Gross profit as a % of revenue | 4.9 | % | 4.9 | % | — | bps |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Same store new vehicle: | |||||||||||||||||||||||
Revenue | $ | 3,588,102 | $ | 3,590,192 | $ | (2,090) | (0.1) | % | |||||||||||||||
Gross profit | $ | 173,825 | $ | 180,889 | $ | (7,064) | (3.9) | % | |||||||||||||||
Unit sales | 89,414 | 92,135 | (2,721) | (3.0) | % | ||||||||||||||||||
Revenue per unit | $ | 40,129 | $ | 38,967 | $ | 1,162 | 3.0 | % | |||||||||||||||
Gross profit per unit | $ | 1,944 | $ | 1,963 | $ | (19) | (1.0) | % | |||||||||||||||
Gross profit as a % of revenue | 4.8 | % | 5.0 | % | (20) | bps |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit data) | |||||||||||||||||||||||
Total used vehicle revenue: | |||||||||||||||||||||||
Same store | $ | 653,793 | $ | 614,894 | $ | 38,899 | 6.3 | % | |||||||||||||||
Acquisitions, open points and dispositions | 92,205 | 44,830 | 47,375 | NM | |||||||||||||||||||
Total as reported | $ | 745,998 | $ | 659,724 | $ | 86,274 | 13.1 | % | |||||||||||||||
Total used vehicle gross profit: | |||||||||||||||||||||||
Same store | $ | 35,302 | $ | 35,270 | $ | 32 | 0.1 | % | |||||||||||||||
Acquisitions, open points and dispositions | 15 | 3,875 | (3,860) | NM | |||||||||||||||||||
Total as reported | $ | 35,317 | $ | 39,145 | $ | (3,828) | (9.8) | % | |||||||||||||||
Total used vehicle unit sales: | |||||||||||||||||||||||
Same store | 30,527 | 28,328 | 2,199 | 7.8 | % | ||||||||||||||||||
Acquisitions, open points and dispositions | 4,425 | 2,513 | 1,912 | NM | |||||||||||||||||||
Total as reported | 34,952 | 30,841 | 4,111 | 13.3 | % |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit data) | |||||||||||||||||||||||
Total used vehicle revenue: | |||||||||||||||||||||||
Same store | $ | 1,913,815 | $ | 1,795,568 | $ | 118,247 | 6.6 | % | |||||||||||||||
Acquisitions, open points and dispositions | 303,801 | 140,520 | 163,281 | NM | |||||||||||||||||||
Total as reported | $ | 2,217,616 | $ | 1,936,088 | $ | 281,528 | 14.5 | % | |||||||||||||||
Total used vehicle gross profit: | |||||||||||||||||||||||
Same store | $ | 104,945 | $ | 107,503 | $ | (2,558) | (2.4) | % | |||||||||||||||
Acquisitions, open points and dispositions | 4,452 | 12,509 | (8,057) | NM | |||||||||||||||||||
Total as reported | $ | 109,397 | $ | 120,012 | $ | (10,615) | (8.8) | % | |||||||||||||||
Total used vehicle unit sales: | |||||||||||||||||||||||
Same store | 89,311 | 83,873 | 5,438 | 6.5 | % | ||||||||||||||||||
Acquisitions, open points and dispositions | 15,159 | 7,876 | 7,283 | NM | |||||||||||||||||||
Total as reported | 104,470 | 91,749 | 12,721 | 13.9 | % |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Reported used vehicle: | |||||||||||||||||||||||
Revenue | $ | 745,998 | $ | 659,724 | $ | 86,274 | 13.1 | % | |||||||||||||||
Gross profit | $ | 35,317 | $ | 39,145 | $ | (3,828) | (9.8) | % | |||||||||||||||
Unit sales | 34,952 | 30,841 | 4,111 | 13.3 | % | ||||||||||||||||||
Revenue per unit | $ | 21,343 | $ | 21,391 | $ | (48) | (0.2) | % | |||||||||||||||
Gross profit per unit | $ | 1,010 | $ | 1,269 | $ | (259) | (20.4) | % | |||||||||||||||
Gross profit as a % of revenue | 4.7 | % | 5.9 | % | (120) | bps |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Reported used vehicle: | |||||||||||||||||||||||
Revenue | $ | 2,217,616 | $ | 1,936,088 | $ | 281,528 | 14.5 | % | |||||||||||||||
Gross profit | $ | 109,397 | $ | 120,012 | $ | (10,615) | (8.8) | % | |||||||||||||||
Unit sales | 104,470 | 91,749 | 12,721 | 13.9 | % | ||||||||||||||||||
Revenue per unit | $ | 21,227 | $ | 21,102 | $ | 125 | 0.6 | % | |||||||||||||||
Gross profit per unit | $ | 1,047 | $ | 1,308 | $ | (261) | (20.0) | % | |||||||||||||||
Gross profit as a % of revenue | 4.9 | % | 6.2 | % | (130) | bps |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Same store used vehicle: | |||||||||||||||||||||||
Revenue | $ | 653,793 | $ | 614,894 | $ | 38,899 | 6.3 | % | |||||||||||||||
Gross profit | $ | 35,302 | $ | 35,270 | $ | 32 | 0.1 | % | |||||||||||||||
Unit sales | 30,527 | 28,328 | 2,199 | 7.8 | % | ||||||||||||||||||
Revenue per unit | $ | 21,417 | $ | 21,706 | $ | (289) | (1.3) | % | |||||||||||||||
Gross profit per unit | $ | 1,156 | $ | 1,245 | $ | (89) | (7.1) | % | |||||||||||||||
Gross profit as a % of revenue | 5.4 | % | 5.7 | % | (30) | bps |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Same store used vehicle: | |||||||||||||||||||||||
Revenue | $ | 1,913,815 | $ | 1,795,568 | $ | 118,247 | 6.6 | % | |||||||||||||||
Gross profit | $ | 104,945 | $ | 107,503 | $ | (2,558) | (2.4) | % | |||||||||||||||
Unit sales | 89,311 | 83,873 | 5,438 | 6.5 | % | ||||||||||||||||||
Revenue per unit | $ | 21,429 | $ | 21,408 | $ | 21 | 0.1 | % | |||||||||||||||
Gross profit per unit | $ | 1,175 | $ | 1,282 | $ | (107) | (8.3) | % | |||||||||||||||
Gross profit as a % of revenue | 5.5 | % | 6.0 | % | (50) | bps |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit data) | |||||||||||||||||||||||
Total wholesale vehicle revenue: | |||||||||||||||||||||||
Same store | $ | 46,238 | $ | 40,254 | $ | 5,984 | 14.9 | % | |||||||||||||||
Acquisitions, open points and dispositions | 2,340 | 2,844 | (504) | NM | |||||||||||||||||||
Total as reported | $ | 48,578 | $ | 43,098 | $ | 5,480 | 12.7 | % | |||||||||||||||
Total wholesale vehicle gross profit (loss): | |||||||||||||||||||||||
Same store | $ | (1,212) | $ | (2,912) | $ | 1,700 | 58.4 | % | |||||||||||||||
Acquisitions, open points and dispositions | (87) | (380) | 293 | NM | |||||||||||||||||||
Total as reported | $ | (1,299) | $ | (3,292) | $ | 1,993 | 60.5 | % | |||||||||||||||
Total wholesale vehicle unit sales: | |||||||||||||||||||||||
Same store | 7,377 | 7,180 | 197 | 2.7 | % | ||||||||||||||||||
Acquisitions, open points and dispositions | 454 | 652 | (198) | NM | |||||||||||||||||||
Total as reported | 7,831 | 7,832 | (1) | — | % |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit data) | |||||||||||||||||||||||
Total wholesale vehicle revenue: | |||||||||||||||||||||||
Same store | $ | 155,463 | $ | 121,102 | $ | 34,361 | 28.4 | % | |||||||||||||||
Acquisitions, open points and dispositions | 12,263 | 9,072 | 3,191 | NM | |||||||||||||||||||
Total as reported | $ | 167,726 | $ | 130,174 | $ | 37,552 | 28.8 | % | |||||||||||||||
Total wholesale vehicle gross profit (loss): | |||||||||||||||||||||||
Same store | $ | (9,118) | $ | (5,539) | $ | (3,579) | (64.6) | % | |||||||||||||||
Acquisitions, open points and dispositions | 38 | (842) | 880 | NM | |||||||||||||||||||
Total as reported | $ | (9,080) | $ | (6,381) | $ | (2,699) | (42.3) | % | |||||||||||||||
Total wholesale vehicle unit sales: | |||||||||||||||||||||||
Same store | 23,817 | 21,799 | 2,018 | 9.3 | % | ||||||||||||||||||
Acquisitions, open points and dispositions | 2,136 | 2,123 | 13 | NM | |||||||||||||||||||
Total as reported | 25,953 | 23,922 | 2,031 | 8.5 | % |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Reported wholesale vehicle: | |||||||||||||||||||||||
Revenue | $ | 48,578 | $ | 43,098 | $ | 5,480 | 12.7 | % | |||||||||||||||
Gross profit (loss) | $ | (1,299) | $ | (3,292) | $ | 1,993 | 60.5 | % | |||||||||||||||
Unit sales | 7,831 | 7,832 | (1) | — | % | ||||||||||||||||||
Revenue per unit | $ | 6,203 | $ | 5,503 | $ | 700 | 12.7 | % | |||||||||||||||
Gross profit (loss) per unit | $ | (166) | $ | (420) | $ | 254 | 60.5 | % | |||||||||||||||
Gross profit (loss) as a % of revenue | (2.7) | % | (7.6) | % | 490 | bps |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Reported wholesale vehicle: | |||||||||||||||||||||||
Revenue | $ | 167,726 | $ | 130,174 | $ | 37,552 | 28.8 | % | |||||||||||||||
Gross profit (loss) | $ | (9,080) | $ | (6,381) | $ | (2,699) | (42.3) | % | |||||||||||||||
Unit sales | 25,953 | 23,922 | 2,031 | 8.5 | % | ||||||||||||||||||
Revenue per unit | $ | 6,463 | $ | 5,442 | $ | 1,021 | 18.8 | % | |||||||||||||||
Gross profit (loss) per unit | $ | (350) | $ | (267) | $ | (83) | (31.1) | % | |||||||||||||||
Gross profit (loss) as a % of revenue | (5.4) | % | (4.9) | % | (50) | bps |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Same store wholesale vehicle: | |||||||||||||||||||||||
Revenue | $ | 46,238 | $ | 40,254 | $ | 5,984 | 14.9 | % | |||||||||||||||
Gross profit (loss) | $ | (1,212) | $ | (2,912) | $ | 1,700 | 58.4 | % | |||||||||||||||
Unit sales | 7,377 | 7,180 | 197 | 2.7 | % | ||||||||||||||||||
Revenue per unit | $ | 6,268 | $ | 5,606 | $ | 662 | 11.8 | % | |||||||||||||||
Gross profit (loss) per unit | $ | (164) | $ | (406) | $ | 242 | 59.6 | % | |||||||||||||||
Gross profit (loss) as a % of revenue | (2.6) | % | (7.2) | % | 460 | bps |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Same store wholesale vehicle: | |||||||||||||||||||||||
Revenue | $ | 155,463 | $ | 121,102 | $ | 34,361 | 28.4 | % | |||||||||||||||
Gross profit (loss) | $ | (9,118) | $ | (5,539) | $ | (3,579) | (64.6) | % | |||||||||||||||
Unit sales | 23,817 | 21,799 | 2,018 | 9.3 | % | ||||||||||||||||||
Revenue per unit | $ | 6,527 | $ | 5,555 | $ | 972 | 17.5 | % | |||||||||||||||
Gross profit (loss) per unit | $ | (383) | $ | (254) | $ | (129) | (50.8) | % | |||||||||||||||
Gross profit (loss) as a % of revenue | (5.9) | % | (4.6) | % | (130) | bps |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Total Fixed Operations revenue: | |||||||||||||||||||||||
Same store | $ | 337,842 | $ | 330,025 | $ | 7,817 | 2.4 | % | |||||||||||||||
Acquisitions, open points and dispositions | 5,276 | 17,692 | (12,416) | NM | |||||||||||||||||||
Total as reported | $ | 343,118 | $ | 347,717 | $ | (4,599) | (1.3) | % | |||||||||||||||
Total Fixed Operations gross profit: | |||||||||||||||||||||||
Same store | $ | 163,320 | $ | 158,881 | $ | 4,439 | 2.8 | % | |||||||||||||||
Acquisitions, open points and dispositions | 3,496 | 8,789 | (5,293) | NM | |||||||||||||||||||
Total as reported | $ | 166,816 | $ | 167,670 | $ | (854) | (0.5) | % |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Total Fixed Operations revenue: | |||||||||||||||||||||||
Same store | $ | 1,015,241 | $ | 1,003,361 | $ | 11,880 | 1.2 | % | |||||||||||||||
Acquisitions, open points and dispositions | 26,389 | 57,512 | (31,123) | NM | |||||||||||||||||||
Total as reported | $ | 1,041,630 | $ | 1,060,873 | $ | (19,243) | (1.8) | % | |||||||||||||||
Total Fixed Operations gross profit: | |||||||||||||||||||||||
Same store | $ | 490,757 | $ | 480,820 | $ | 9,937 | 2.1 | % | |||||||||||||||
Acquisitions, open points and dispositions | 12,738 | 29,265 | (16,527) | NM | |||||||||||||||||||
Total as reported | $ | 503,495 | $ | 510,085 | $ | (6,590) | (1.3) | % |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Reported Fixed Operations: | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Customer pay | $ | 139,642 | $ | 137,850 | $ | 1,792 | 1.3 | % | |||||||||||||||
Warranty | 66,730 | 70,575 | (3,845) | (5.4) | % | ||||||||||||||||||
Wholesale parts | 39,419 | 40,927 | (1,508) | (3.7) | % | ||||||||||||||||||
Internal, sublet and other | 97,327 | 98,365 | (1,038) | (1.1) | % | ||||||||||||||||||
Total revenue | $ | 343,118 | $ | 347,717 | $ | (4,599) | (1.3) | % | |||||||||||||||
Gross profit | |||||||||||||||||||||||
Customer pay | $ | 74,994 | $ | 74,302 | $ | 692 | 0.9 | % | |||||||||||||||
Warranty | 38,563 | 38,821 | (258) | (0.7) | % | ||||||||||||||||||
Wholesale parts | 6,784 | 6,958 | (174) | (2.5) | % | ||||||||||||||||||
Internal, sublet and other | 46,475 | 47,589 | (1,114) | (2.3) | % | ||||||||||||||||||
Total gross profit | $ | 166,816 | $ | 167,670 | $ | (854) | (0.5) | % | |||||||||||||||
Gross profit as a % of revenue | |||||||||||||||||||||||
Customer pay | 53.7 | % | 53.9 | % | (20) | bps | |||||||||||||||||
Warranty | 57.8 | % | 55.0 | % | 280 | bps | |||||||||||||||||
Wholesale parts | 17.2 | % | 17.0 | % | 20 | bps | |||||||||||||||||
Internal, sublet and other | 47.8 | % | 48.4 | % | (60) | bps | |||||||||||||||||
Total gross profit as a % of revenue | 48.6 | % | 48.2 | % | 40 | bps |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Reported Fixed Operations: | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Customer pay | $ | 422,348 | $ | 415,179 | $ | 7,169 | 1.7 | % | |||||||||||||||
Warranty | 198,219 | 213,155 | (14,936) | (7.0) | % | ||||||||||||||||||
Wholesale parts | 122,763 | 127,014 | (4,251) | (3.3) | % | ||||||||||||||||||
Internal, sublet and other | 298,300 | 305,525 | (7,225) | (2.4) | % | ||||||||||||||||||
Total revenue | $ | 1,041,630 | $ | 1,060,873 | $ | (19,243) | (1.8) | % | |||||||||||||||
Gross profit | |||||||||||||||||||||||
Customer pay | $ | 226,443 | $ | 222,086 | $ | 4,357 | 2.0 | % | |||||||||||||||
Warranty | 112,335 | 117,809 | (5,474) | (4.6) | % | ||||||||||||||||||
Wholesale parts | 20,949 | 21,839 | (890) | (4.1) | % | ||||||||||||||||||
Internal, sublet and other | 143,768 | 148,351 | (4,583) | (3.1) | % | ||||||||||||||||||
Total gross profit | $ | 503,495 | $ | 510,085 | $ | (6,590) | (1.3) | % | |||||||||||||||
Gross profit as a % of revenue | |||||||||||||||||||||||
Customer pay | 53.6 | % | 53.5 | % | 10 | bps | |||||||||||||||||
Warranty | 56.7 | % | 55.3 | % | 140 | bps | |||||||||||||||||
Wholesale parts | 17.1 | % | 17.2 | % | (10) | bps | |||||||||||||||||
Internal, sublet and other | 48.2 | % | 48.6 | % | (40) | bps | |||||||||||||||||
Total gross profit as a % of revenue | 48.3 | % | 48.1 | % | 20 | bps |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Same store Fixed Operations: | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Customer pay | $ | 137,848 | $ | 131,453 | $ | 6,395 | 4.9 | % | |||||||||||||||
Warranty | 65,923 | 67,182 | (1,259) | (1.9) | % | ||||||||||||||||||
Wholesale parts | 39,419 | 38,961 | 458 | 1.2 | % | ||||||||||||||||||
Internal, sublet and other | 94,652 | 92,429 | 2,223 | 2.4 | % | ||||||||||||||||||
Total revenue | $ | 337,842 | $ | 330,025 | $ | 7,817 | 2.4 | % | |||||||||||||||
Gross profit | |||||||||||||||||||||||
Customer pay | $ | 74,047 | $ | 70,769 | $ | 3,278 | 4.6 | % | |||||||||||||||
Warranty | 36,605 | 36,949 | (344) | (0.9) | % | ||||||||||||||||||
Wholesale parts | 6,782 | 6,634 | 148 | 2.2 | % | ||||||||||||||||||
Internal, sublet and other | 45,886 | 44,529 | 1,357 | 3.0 | % | ||||||||||||||||||
Total gross profit | $ | 163,320 | $ | 158,881 | $ | 4,439 | 2.8 | % | |||||||||||||||
Gross profit as a % of revenue | |||||||||||||||||||||||
Customer pay | 53.7 | % | 53.8 | % | (10) | bps | |||||||||||||||||
Warranty | 55.5 | % | 55.0 | % | 50 | bps | |||||||||||||||||
Wholesale parts | 17.2 | % | 17.0 | % | 20 | bps | |||||||||||||||||
Internal, sublet and other | 48.5 | % | 48.2 | % | 30 | bps | |||||||||||||||||
Total gross profit as a % of revenue | 48.3 | % | 48.1 | % | 20 | bps |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Same store Fixed Operations: | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Customer pay | $ | 413,920 | $ | 393,933 | $ | 19,987 | 5.1 | % | |||||||||||||||
Warranty | 195,477 | 202,223 | (6,746) | (3.3) | % | ||||||||||||||||||
Wholesale parts | 120,819 | 120,731 | 88 | 0.1 | % | ||||||||||||||||||
Internal, sublet and other | 285,025 | 286,474 | (1,449) | (0.5) | % | ||||||||||||||||||
Total revenue | $ | 1,015,241 | $ | 1,003,361 | $ | 11,880 | 1.2 | % | |||||||||||||||
Gross profit | |||||||||||||||||||||||
Customer pay | $ | 222,048 | $ | 210,369 | $ | 11,679 | 5.6 | % | |||||||||||||||
Warranty | 109,107 | 111,714 | (2,607) | (2.3) | % | ||||||||||||||||||
Wholesale parts | 20,654 | 20,807 | (153) | (0.7) | % | ||||||||||||||||||
Internal, sublet and other | 138,948 | 137,930 | 1,018 | 0.7 | % | ||||||||||||||||||
Total gross profit | $ | 490,757 | $ | 480,820 | $ | 9,937 | 2.1 | % | |||||||||||||||
Gross profit as a % of revenue | |||||||||||||||||||||||
Customer pay | 53.6 | % | 53.4 | % | 20 | bps | |||||||||||||||||
Warranty | 55.8 | % | 55.2 | % | 60 | bps | |||||||||||||||||
Wholesale parts | 17.1 | % | 17.2 | % | (10) | bps | |||||||||||||||||
Internal, sublet and other | 48.7 | % | 48.1 | % | 60 | bps | |||||||||||||||||
Total gross profit as a % of revenue | 48.3 | % | 47.9 | % | 40 | bps |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except per unit data) | |||||||||||||||||||||||
Total F&I revenue: | |||||||||||||||||||||||
Same store | $ | 87,697 | $ | 85,928 | $ | 1,769 | 2.1 | % | |||||||||||||||
Acquisitions, open points and dispositions | 10,364 | 6,933 | 3,431 | NM | |||||||||||||||||||
Total as reported | $ | 98,061 | $ | 92,861 | $ | 5,200 | 5.6 | % | |||||||||||||||
Total F&I gross profit per retail unit (excludes fleet): | |||||||||||||||||||||||
Same store | $ | 1,444 | $ | 1,405 | $ | 39 | 2.8 | % | |||||||||||||||
Reported | $ | 1,505 | $ | 1,408 | $ | 97 | 6.9 | % |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except per unit data) | |||||||||||||||||||||||
Total F&I revenue: | |||||||||||||||||||||||
Same store | $ | 257,369 | $ | 241,018 | $ | 16,351 | 6.8 | % | |||||||||||||||
Acquisitions, open points and dispositions | 38,521 | 21,814 | 16,707 | NM | |||||||||||||||||||
Total as reported | $ | 295,890 | $ | 262,832 | $ | 33,058 | 12.6 | % | |||||||||||||||
Total F&I gross profit per retail unit (excludes fleet): | |||||||||||||||||||||||
Same store | $ | 1,452 | $ | 1,381 | $ | 71 | 5.1 | % | |||||||||||||||
Reported | $ | 1,523 | $ | 1,389 | $ | 134 | 9.6 | % |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except per unit data) | |||||||||||||||||||||||
Reported F&I: | |||||||||||||||||||||||
Revenue | $ | 98,061 | $ | 92,861 | $ | 5,200 | 5.6 | % | |||||||||||||||
Gross profit per retail unit (excludes fleet) | 1,505 | 1,408 | 97 | 6.9 | % |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except per unit data) | |||||||||||||||||||||||
Reported F&I: | |||||||||||||||||||||||
Revenue | $ | 295,890 | $ | 262,832 | $ | 33,058 | 12.6 | % | |||||||||||||||
Gross profit per retail unit (excludes fleet) | 1,523 | 1,389 | 134 | 9.6 | % |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except per unit data) | |||||||||||||||||||||||
Same store F&I: | |||||||||||||||||||||||
Revenue | $ | 87,697 | $ | 85,928 | $ | 1,769 | 2.1 | % | |||||||||||||||
Gross profit per retail unit (excludes fleet) | 1,444 | 1,405 | 39 | 2.8 | % |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except per unit data) | |||||||||||||||||||||||
Same store F&I: | |||||||||||||||||||||||
Revenue | $ | 257,369 | $ | 241,018 | $ | 16,351 | 6.8 | % | |||||||||||||||
Gross profit per retail unit (excludes fleet) | 1,452 | 1,381 | 71 | 5.1 | % |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit data) | |||||||||||||||||||||||
Total new vehicle revenue: | |||||||||||||||||||||||
Same store | $ | 1,235,103 | $ | 1,288,932 | $ | (53,829) | (4.2) | % | |||||||||||||||
Acquisitions, open points and dispositions | (9) | 73,369 | (73,378) | NM | |||||||||||||||||||
Total as reported | $ | 1,235,094 | $ | 1,362,301 | $ | (127,207) | (9.3) | % | |||||||||||||||
Total new vehicle gross profit: | |||||||||||||||||||||||
Same store | $ | 61,106 | $ | 63,590 | $ | (2,484) | (3.9) | % | |||||||||||||||
Acquisitions, open points and dispositions | 535 | 2,648 | (2,113) | NM | |||||||||||||||||||
Total as reported | $ | 61,641 | $ | 66,238 | $ | (4,597) | (6.9) | % | |||||||||||||||
Total new vehicle unit sales: | |||||||||||||||||||||||
Same store | 31,010 | 33,162 | (2,152) | (6.5) | % | ||||||||||||||||||
Acquisitions, open points and dispositions | (1) | 2,327 | (2,328) | NM | |||||||||||||||||||
Total as reported | 31,009 | 35,489 | (4,480) | (12.6) | % | ||||||||||||||||||
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit data) | |||||||||||||||||||||||
Total new vehicle revenue: | |||||||||||||||||||||||
Same store | $ | 3,588,102 | $ | 3,590,192 | $ | (2,090) | (0.1) | % | |||||||||||||||
Acquisitions, open points and dispositions | 66,408 | 219,110 | (152,702) | NM | |||||||||||||||||||
Total as reported | $ | 3,654,510 | $ | 3,809,302 | $ | (154,792) | (4.1) | % | |||||||||||||||
Total new vehicle gross profit: | |||||||||||||||||||||||
Same store | $ | 173,825 | $ | 180,889 | $ | (7,064) | (3.9) | % | |||||||||||||||
Acquisitions, open points and dispositions | 1,883 | 6,149 | (4,266) | NM | |||||||||||||||||||
Total as reported | $ | 175,708 | $ | 187,038 | $ | (11,330) | (6.1) | % | |||||||||||||||
Total new vehicle unit sales: | |||||||||||||||||||||||
Same store | 89,414 | 92,135 | (2,721) | (3.0) | % | ||||||||||||||||||
Acquisitions, open points and dispositions | 1,972 | 6,997 | (5,025) | NM | |||||||||||||||||||
Total as reported | 91,386 | 99,132 | (7,746) | (7.8) | % | ||||||||||||||||||
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Reported new vehicle: | |||||||||||||||||||||||
Revenue | $ | 1,235,094 | $ | 1,362,301 | $ | (127,207) | (9.3) | % | |||||||||||||||
Gross profit | $ | 61,641 | $ | 66,238 | $ | (4,597) | (6.9) | % | |||||||||||||||
Unit sales | 31,009 | 35,489 | (4,480) | (12.6) | % | ||||||||||||||||||
Revenue per unit | $ | 39,830 | $ | 38,387 | $ | 1,443 | 3.8 | % | |||||||||||||||
Gross profit per unit | $ | 1,988 | $ | 1,866 | $ | 122 | 6.5 | % | |||||||||||||||
Gross profit as a % of revenue | 5.0 | % | 4.9 | % | 10 | bps |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Reported new vehicle: | |||||||||||||||||||||||
Revenue | $ | 3,654,510 | $ | 3,809,302 | $ | (154,792) | (4.1) | % | |||||||||||||||
Gross profit | $ | 175,708 | $ | 187,038 | $ | (11,330) | (6.1) | % | |||||||||||||||
Unit sales | 91,386 | 99,132 | (7,746) | (7.8) | % | ||||||||||||||||||
Revenue per unit | $ | 39,990 | $ | 38,427 | $ | 1,563 | 4.1 | % | |||||||||||||||
Gross profit per unit | $ | 1,923 | $ | 1,887 | $ | 36 | 1.9 | % | |||||||||||||||
Gross profit as a % of revenue | 4.8 | % | 4.9 | % | (10) | bps |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Same store new vehicle: | |||||||||||||||||||||||
Revenue | $ | 1,235,103 | $ | 1,288,932 | $ | (53,829) | (4.2) | % | |||||||||||||||
Gross profit | $ | 61,106 | $ | 63,590 | $ | (2,484) | (3.9) | % | |||||||||||||||
Unit sales | 31,010 | 33,162 | (2,152) | (6.5) | % | ||||||||||||||||||
Revenue per unit | $ | 39,829 | $ | 38,868 | $ | 961 | 2.5 | % | |||||||||||||||
Gross profit per unit | $ | 1,971 | $ | 1,918 | $ | 53 | 2.8 | % | |||||||||||||||
Gross profit as a % of revenue | 4.9 | % | 4.9 | % | — | bps |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Same store new vehicle: | |||||||||||||||||||||||
Revenue | $ | 3,588,102 | $ | 3,590,192 | $ | (2,090) | (0.1) | % | |||||||||||||||
Gross profit | $ | 173,825 | $ | 180,889 | $ | (7,064) | (3.9) | % | |||||||||||||||
Unit sales | 89,414 | 92,135 | (2,721) | (3.0) | % | ||||||||||||||||||
Revenue per unit | $ | 40,129 | $ | 38,967 | $ | 1,162 | 3.0 | % | |||||||||||||||
Gross profit per unit | $ | 1,944 | $ | 1,963 | $ | (19) | (1.0) | % | |||||||||||||||
Gross profit as a % of revenue | 4.8 | % | 5.0 | % | (20) | bps |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit data) | |||||||||||||||||||||||
Total used vehicle revenue: | |||||||||||||||||||||||
Same store | $ | 585,289 | $ | 581,432 | $ | 3,857 | 0.7 | % | |||||||||||||||
Acquisitions, open points and dispositions | 11 | 29,868 | (29,857) | NM | |||||||||||||||||||
Total as reported | $ | 585,300 | $ | 611,300 | $ | (26,000) | (4.3) | % | |||||||||||||||
Total used vehicle gross profit: | |||||||||||||||||||||||
Same store | $ | 36,106 | $ | 33,684 | $ | 2,422 | 7.2 | % | |||||||||||||||
Acquisitions, open points and dispositions | 1,374 | 3,470 | (2,096) | NM | |||||||||||||||||||
Total as reported | $ | 37,480 | $ | 37,154 | $ | 326 | 0.9 | % | |||||||||||||||
Total used vehicle unit sales: | |||||||||||||||||||||||
Same store | 27,254 | 26,657 | 597 | 2.2 | % | ||||||||||||||||||
Acquisitions, open points and dispositions | — | 1,784 | (1,784) | NM | |||||||||||||||||||
Total as reported | 27,254 | 28,441 | (1,187) | (4.2) | % |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit data) | |||||||||||||||||||||||
Total used vehicle revenue: | |||||||||||||||||||||||
Same store | $ | 1,765,366 | $ | 1,712,589 | $ | 52,777 | 3.1 | % | |||||||||||||||
Acquisitions, open points and dispositions | 29,037 | 97,495 | (68,458) | NM | |||||||||||||||||||
Total as reported | $ | 1,794,403 | $ | 1,810,084 | $ | (15,681) | (0.9) | % | |||||||||||||||
Total used vehicle gross profit: | |||||||||||||||||||||||
Same store | $ | 106,244 | $ | 103,523 | $ | 2,721 | 2.6 | % | |||||||||||||||
Acquisitions, open points and dispositions | 6,721 | 10,956 | (4,235) | NM | |||||||||||||||||||
Total as reported | $ | 112,965 | $ | 114,479 | $ | (1,514) | (1.3) | % | |||||||||||||||
Total used vehicle unit sales: | |||||||||||||||||||||||
Same store | 82,126 | 79,768 | 2,358 | 3.0 | % | ||||||||||||||||||
Acquisitions, open points and dispositions | 1,669 | 5,859 | (4,190) | NM | |||||||||||||||||||
Total as reported | 83,795 | 85,627 | (1,832) | (2.1) | % |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Reported used vehicle: | |||||||||||||||||||||||
Revenue | $ | 585,300 | $ | 611,300 | $ | (26,000) | (4.3) | % | |||||||||||||||
Gross profit | $ | 37,480 | $ | 37,154 | $ | 326 | 0.9 | % | |||||||||||||||
Unit sales | 27,254 | 28,441 | (1,187) | (4.2) | % | ||||||||||||||||||
Revenue per unit | $ | 21,476 | $ | 21,494 | $ | (18) | (0.1) | % | |||||||||||||||
Gross profit per unit | $ | 1,375 | $ | 1,306 | $ | 69 | 5.3 | % | |||||||||||||||
Gross profit as a % of revenue | 6.4 | % | 6.1 | % | 30 | bps |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Reported used vehicle: | |||||||||||||||||||||||
Revenue | $ | 1,794,403 | $ | 1,810,084 | $ | (15,681) | (0.9) | % | |||||||||||||||
Gross profit | $ | 112,965 | $ | 114,479 | $ | (1,514) | (1.3) | % | |||||||||||||||
Unit sales | 83,795 | 85,627 | (1,832) | (2.1) | % | ||||||||||||||||||
Revenue per unit | $ | 21,414 | $ | 21,139 | $ | 275 | 1.3 | % | |||||||||||||||
Gross profit per unit | $ | 1,348 | $ | 1,337 | $ | 11 | 0.8 | % | |||||||||||||||
Gross profit as a % of revenue | 6.3 | % | 6.3 | % | — | bps |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Same store used vehicle: | |||||||||||||||||||||||
Revenue | $ | 585,289 | $ | 581,432 | $ | 3,857 | 0.7 | % | |||||||||||||||
Gross profit | $ | 36,106 | $ | 33,684 | $ | 2,422 | 7.2 | % | |||||||||||||||
Unit sales | 27,254 | 26,657 | 597 | 2.2 | % | ||||||||||||||||||
Revenue per unit | $ | 21,475 | $ | 21,812 | $ | (337) | (1.5) | % | |||||||||||||||
Gross profit per unit | $ | 1,325 | $ | 1,264 | $ | 61 | 4.8 | % | |||||||||||||||
Gross profit as a % of revenue | 6.2 | % | 5.8 | % | 40 | bps |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Same store used vehicle: | |||||||||||||||||||||||
Revenue | $ | 1,765,366 | $ | 1,712,589 | $ | 52,777 | 3.1 | % | |||||||||||||||
Gross profit | $ | 106,244 | $ | 103,523 | $ | 2,721 | 2.6 | % | |||||||||||||||
Unit sales | 82,126 | 79,768 | 2,358 | 3.0 | % | ||||||||||||||||||
Revenue per unit | $ | 21,496 | $ | 21,470 | $ | 26 | 0.1 | % | |||||||||||||||
Gross profit per unit | $ | 1,294 | $ | 1,298 | $ | (4) | (0.3) | % | |||||||||||||||
Gross profit as a % of revenue | 6.0 | % | 6.0 | % | — | bps |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit data) | |||||||||||||||||||||||
Total wholesale vehicle revenue: | |||||||||||||||||||||||
Same store | $ | 43,379 | $ | 38,247 | $ | 5,132 | 13.4 | % | |||||||||||||||
Acquisitions, open points and dispositions | 2 | 2,288 | (2,286) | NM | |||||||||||||||||||
Total as reported | $ | 43,381 | $ | 40,535 | $ | 2,846 | 7.0 | % | |||||||||||||||
Total wholesale vehicle gross profit (loss): | |||||||||||||||||||||||
Same store | $ | (1,261) | $ | (2,846) | $ | 1,585 | 55.7 | % | |||||||||||||||
Acquisitions, open points and dispositions | 1 | (412) | 413 | NM | |||||||||||||||||||
Total as reported | $ | (1,260) | $ | (3,258) | $ | 1,998 | 61.3 | % | |||||||||||||||
Total wholesale vehicle unit sales: | |||||||||||||||||||||||
Same store | 6,905 | 6,609 | 296 | 4.5 | % | ||||||||||||||||||
Acquisitions, open points and dispositions | 1 | 550 | (549) | NM | |||||||||||||||||||
Total as reported | 6,906 | 7,159 | (253) | (3.5) | % |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit data) | |||||||||||||||||||||||
Total wholesale vehicle revenue: | |||||||||||||||||||||||
Same store | $ | 143,334 | $ | 116,322 | $ | 27,012 | 23.2 | % | |||||||||||||||
Acquisitions, open points and dispositions | 4,703 | 7,730 | (3,027) | NM | |||||||||||||||||||
Total as reported | $ | 148,037 | $ | 124,052 | $ | 23,985 | 19.3 | % | |||||||||||||||
Total wholesale vehicle gross profit (loss): | |||||||||||||||||||||||
Same store | $ | (9,111) | $ | (5,354) | $ | (3,757) | (70.2) | % | |||||||||||||||
Acquisitions, open points and dispositions | (597) | (800) | 203 | NM | |||||||||||||||||||
Total as reported | $ | (9,708) | $ | (6,154) | $ | (3,554) | (57.8) | % | |||||||||||||||
Total wholesale vehicle unit sales: | |||||||||||||||||||||||
Same store | 21,789 | 20,394 | 1,395 | 6.8 | % | ||||||||||||||||||
Acquisitions, open points and dispositions | 665 | 1,837 | (1,172) | NM | |||||||||||||||||||
Total as reported | 22,454 | 22,231 | 223 | 1.0 | % |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Reported wholesale vehicle: | |||||||||||||||||||||||
Revenue | $ | 43,381 | $ | 40,535 | $ | 2,846 | 7.0 | % | |||||||||||||||
Gross profit (loss) | $ | (1,260) | $ | (3,258) | $ | 1,998 | 61.3 | % | |||||||||||||||
Unit sales | 6,906 | 7,159 | (253) | (3.5) | % | ||||||||||||||||||
Revenue per unit | $ | 6,282 | $ | 5,662 | $ | 620 | 11.0 | % | |||||||||||||||
Gross profit (loss) per unit | $ | (182) | $ | (455) | $ | 273 | 60.0 | % | |||||||||||||||
Gross profit (loss) as a % of revenue | (2.9) | % | (8.0) | % | 510 | bps |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Reported wholesale vehicle: | |||||||||||||||||||||||
Revenue | $ | 148,037 | $ | 124,052 | $ | 23,985 | 19.3 | % | |||||||||||||||
Gross profit (loss) | $ | (9,708) | $ | (6,154) | $ | (3,554) | (57.8) | % | |||||||||||||||
Unit sales | 22,454 | 22,231 | 223 | 1.0 | % | ||||||||||||||||||
Revenue per unit | $ | 6,593 | $ | 5,580 | $ | 1,013 | 18.2 | % | |||||||||||||||
Gross profit (loss) per unit | $ | (432) | $ | (277) | $ | (155) | (56.0) | % | |||||||||||||||
Gross profit (loss) as a % of revenue | (6.6) | % | (5.0) | % | (160) | bps |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Same store wholesale vehicle: | |||||||||||||||||||||||
Revenue | $ | 43,379 | $ | 38,247 | $ | 5,132 | 13.4 | % | |||||||||||||||
Gross profit (loss) | $ | (1,261) | $ | (2,846) | $ | 1,585 | 55.7 | % | |||||||||||||||
Unit sales | 6,905 | 6,609 | 296 | 4.5 | % | ||||||||||||||||||
Revenue per unit | $ | 6,282 | $ | 5,787 | $ | 495 | 8.6 | % | |||||||||||||||
Gross profit (loss) per unit | $ | (183) | $ | (431) | $ | 248 | 57.5 | % | |||||||||||||||
Gross profit (loss) as a % of revenue | (2.9) | % | (7.4) | % | 450 | bps |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Same store wholesale vehicle: | |||||||||||||||||||||||
Revenue | $ | 143,334 | $ | 116,322 | $ | 27,012 | 23.2 | % | |||||||||||||||
Gross profit (loss) | $ | (9,111) | $ | (5,354) | $ | (3,757) | (70.2) | % | |||||||||||||||
Unit sales | 21,789 | 20,394 | 1,395 | 6.8 | % | ||||||||||||||||||
Revenue per unit | $ | 6,578 | $ | 5,704 | $ | 874 | 15.3 | % | |||||||||||||||
Gross profit (loss) per unit | $ | (418) | $ | (263) | $ | (155) | (58.9) | % | |||||||||||||||
Gross profit (loss) as a % of revenue | (6.4) | % | (4.6) | % | (180) | bps |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Total Fixed Operations revenue: | |||||||||||||||||||||||
Same store | $ | 336,503 | $ | 327,208 | $ | 9,295 | 2.8 | % | |||||||||||||||
Acquisitions, open points and dispositions | 2,563 | 16,955 | (14,392) | NM | |||||||||||||||||||
Total as reported | $ | 339,066 | $ | 344,163 | $ | (5,097) | (1.5) | % | |||||||||||||||
Total Fixed Operations gross profit: | |||||||||||||||||||||||
Same store | $ | 163,410 | $ | 157,612 | $ | 5,798 | 3.7 | % | |||||||||||||||
Acquisitions, open points and dispositions | 2,915 | 8,384 | (5,469) | NM | |||||||||||||||||||
Total as reported | $ | 166,325 | $ | 165,996 | $ | 329 | 0.2 | % |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Total Fixed Operations revenue: | |||||||||||||||||||||||
Same store | $ | 1,010,481 | $ | 996,352 | $ | 14,129 | 1.4 | % | |||||||||||||||
Acquisitions, open points and dispositions | 17,878 | 55,355 | (37,477) | NM | |||||||||||||||||||
Total as reported | $ | 1,028,359 | $ | 1,051,707 | $ | (23,348) | (2.2) | % | |||||||||||||||
Total Fixed Operations gross profit: | |||||||||||||||||||||||
Same store | $ | 490,318 | $ | 477,689 | $ | 12,629 | 2.6 | % | |||||||||||||||
Acquisitions, open points and dispositions | 10,791 | 28,180 | (17,389) | NM | |||||||||||||||||||
Total as reported | $ | 501,109 | $ | 505,869 | $ | (4,760) | (0.9) | % |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Reported Fixed Operations: | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Customer pay | $ | 139,504 | $ | 137,516 | $ | 1,988 | 1.4 | % | |||||||||||||||
Warranty | 66,730 | 70,575 | (3,845) | (5.4) | % | ||||||||||||||||||
Wholesale parts | 39,419 | 40,927 | (1,508) | (3.7) | % | ||||||||||||||||||
Internal, sublet and other | 93,413 | 95,145 | (1,732) | (1.8) | % | ||||||||||||||||||
Total revenue | $ | 339,066 | $ | 344,163 | $ | (5,097) | (1.5) | % | |||||||||||||||
Gross profit | |||||||||||||||||||||||
Customer pay | $ | 74,983 | $ | 74,187 | $ | 796 | 1.1 | % | |||||||||||||||
Warranty | 38,563 | 38,821 | (258) | (0.7) | % | ||||||||||||||||||
Wholesale parts | 6,784 | 6,958 | (174) | (2.5) | % | ||||||||||||||||||
Internal, sublet and other | 45,995 | 46,030 | (35) | (0.1) | % | ||||||||||||||||||
Total gross profit | $ | 166,325 | $ | 165,996 | $ | 329 | 0.2 | % | |||||||||||||||
Gross profit as a % of revenue | |||||||||||||||||||||||
Customer pay | 53.7 | % | 53.9 | % | (20) | bps | |||||||||||||||||
Warranty | 57.8 | % | 55.0 | % | 280 | bps | |||||||||||||||||
Wholesale parts | 17.2 | % | 17.0 | % | 20 | bps | |||||||||||||||||
Internal, sublet and other | 49.2 | % | 48.4 | % | 80 | bps | |||||||||||||||||
Total gross profit as a % of revenue | 49.1 | % | 48.2 | % | 90 | bps |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Reported Fixed Operations: | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Customer pay | $ | 421,484 | $ | 414,193 | $ | 7,291 | 1.8 | % | |||||||||||||||
Warranty | 198,219 | 213,155 | (14,936) | (7.0) | % | ||||||||||||||||||
Wholesale parts | 122,763 | 127,014 | (4,251) | (3.3) | % | ||||||||||||||||||
Internal, sublet and other | 285,893 | 297,345 | (11,452) | (3.9) | % | ||||||||||||||||||
Total revenue | $ | 1,028,359 | $ | 1,051,707 | $ | (23,348) | (2.2) | % | |||||||||||||||
Gross profit | |||||||||||||||||||||||
Customer pay | $ | 226,207 | $ | 221,736 | $ | 4,471 | 2.0 | % | |||||||||||||||
Warranty | 112,335 | 117,809 | (5,474) | (4.6) | % | ||||||||||||||||||
Wholesale parts | 20,949 | 21,839 | (890) | (4.1) | % | ||||||||||||||||||
Internal, sublet and other | 141,618 | 144,485 | (2,867) | (2.0) | % | ||||||||||||||||||
Total gross profit | $ | 501,109 | $ | 505,869 | $ | (4,760) | (0.9) | % | |||||||||||||||
Gross profit as a % of revenue | |||||||||||||||||||||||
Customer pay | 53.7 | % | 53.5 | % | 20 | bps | |||||||||||||||||
Warranty | 56.7 | % | 55.3 | % | 140 | bps | |||||||||||||||||
Wholesale parts | 17.1 | % | 17.2 | % | (10) | bps | |||||||||||||||||
Internal, sublet and other | 49.5 | % | 48.6 | % | 90 | bps | |||||||||||||||||
Total gross profit as a % of revenue | 48.7 | % | 48.1 | % | 60 | bps |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Same store Fixed Operations: | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Customer pay | $ | 137,756 | $ | 131,222 | $ | 6,534 | 5.0 | % | |||||||||||||||
Warranty | 65,923 | 67,182 | (1,259) | (1.9) | % | ||||||||||||||||||
Wholesale parts | 39,419 | 38,961 | 458 | 1.2 | % | ||||||||||||||||||
Internal, sublet and other | 93,405 | 89,843 | 3,562 | 4.0 | % | ||||||||||||||||||
Total revenue | $ | 336,503 | $ | 327,208 | $ | 9,295 | 2.8 | % | |||||||||||||||
Gross profit | |||||||||||||||||||||||
Customer pay | $ | 74,039 | $ | 70,692 | $ | 3,347 | 4.7 | % | |||||||||||||||
Warranty | 36,605 | 36,949 | (344) | (0.9) | % | ||||||||||||||||||
Wholesale parts | 6,782 | 6,634 | 148 | 2.2 | % | ||||||||||||||||||
Internal, sublet and other | 45,984 | 43,337 | 2,647 | 6.1 | % | ||||||||||||||||||
Total gross profit | $ | 163,410 | $ | 157,612 | $ | 5,798 | 3.7 | % | |||||||||||||||
Gross profit as a % of revenue | |||||||||||||||||||||||
Customer pay | 53.7 | % | 53.9 | % | (20) | bps | |||||||||||||||||
Warranty | 55.5 | % | 55.0 | % | 50 | bps | |||||||||||||||||
Wholesale parts | 17.2 | % | 17.0 | % | 20 | bps | |||||||||||||||||
Internal, sublet and other | 49.2 | % | 48.2 | % | 100 | bps | |||||||||||||||||
Total gross profit as a % of revenue | 48.6 | % | 48.2 | % | 40 | bps |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Same store Fixed Operations: | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Customer pay | $ | 413,401 | $ | 393,311 | $ | 20,090 | 5.1 | % | |||||||||||||||
Warranty | 195,477 | 202,223 | (6,746) | (3.3) | % | ||||||||||||||||||
Wholesale parts | 120,819 | 120,731 | 88 | 0.1 | % | ||||||||||||||||||
Internal, sublet and other | 280,784 | 280,087 | 697 | 0.2 | % | ||||||||||||||||||
Total revenue | $ | 1,010,481 | $ | 996,352 | $ | 14,129 | 1.4 | % | |||||||||||||||
Gross profit | |||||||||||||||||||||||
Customer pay | $ | 221,917 | $ | 210,153 | $ | 11,764 | 5.6 | % | |||||||||||||||
Warranty | 109,107 | 111,714 | (2,607) | (2.3) | % | ||||||||||||||||||
Wholesale parts | 20,654 | 20,807 | (153) | (0.7) | % | ||||||||||||||||||
Internal, sublet and other | 138,640 | 135,015 | 3,625 | 2.7 | % | ||||||||||||||||||
Total gross profit | $ | 490,318 | $ | 477,689 | $ | 12,629 | 2.6 | % | |||||||||||||||
Gross profit as a % of revenue | |||||||||||||||||||||||
Customer pay | 53.7 | % | 53.4 | % | 30 | bps | |||||||||||||||||
Warranty | 55.8 | % | 55.2 | % | 60 | bps | |||||||||||||||||
Wholesale parts | 17.1 | % | 17.2 | % | (10) | bps | |||||||||||||||||
Internal, sublet and other | 49.4 | % | 48.2 | % | 120 | bps | |||||||||||||||||
Total gross profit as a % of revenue | 48.5 | % | 47.9 | % | 60 | bps |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except per unit data) | |||||||||||||||||||||||
Total F&I revenue: | |||||||||||||||||||||||
Same store | $ | 80,565 | $ | 84,203 | $ | (3,638) | (4.3) | % | |||||||||||||||
Acquisitions, open points and dispositions | 1,524 | 6,072 | (4,548) | NM | |||||||||||||||||||
Total as reported | $ | 82,089 | $ | 90,275 | $ | (8,186) | (9.1) | % | |||||||||||||||
Total F&I gross profit per retail unit (excludes fleet): | |||||||||||||||||||||||
Same store | $ | 1,402 | $ | 1,415 | $ | (13) | (0.9) | % | |||||||||||||||
Reported | $ | 1,428 | $ | 1,420 | $ | 8 | 0.6 | % |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except per unit data) | |||||||||||||||||||||||
Total F&I revenue: | |||||||||||||||||||||||
Same store | $ | 243,768 | $ | 236,731 | $ | 7,037 | 3.0 | % | |||||||||||||||
Acquisitions, open points and dispositions | 10,705 | 19,415 | (8,710) | NM | |||||||||||||||||||
Total as reported | $ | 254,473 | $ | 256,146 | $ | (1,673) | (0.7) | % | |||||||||||||||
Total F&I gross profit per retail unit (excludes fleet): | |||||||||||||||||||||||
Same store | $ | 1,433 | $ | 1,389 | $ | 44 | 3.2 | % | |||||||||||||||
Reported | $ | 1,465 | $ | 1,399 | $ | 66 | 4.7 | % |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except per unit data) | |||||||||||||||||||||||
Reported F&I: | |||||||||||||||||||||||
Revenue | $ | 82,089 | $ | 90,275 | $ | (8,186) | (9.1) | % | |||||||||||||||
Gross profit per retail unit (excludes fleet) | 1,428 | 1,420 | 8 | 0.6 | % |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except per unit data) | |||||||||||||||||||||||
Reported F&I: | |||||||||||||||||||||||
Revenue | $ | 254,473 | $ | 256,146 | $ | (1,673) | (0.7) | % | |||||||||||||||
Gross profit per retail unit (excludes fleet) | 1,465 | 1,399 | 66 | 4.7 | % |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except per unit data) | |||||||||||||||||||||||
Same store F&I: | |||||||||||||||||||||||
Revenue | $ | 80,565 | $ | 84,203 | $ | (3,638) | (4.3) | % | |||||||||||||||
Gross profit per retail unit (excludes fleet) | 1,402 | 1,415 | (13) | (0.9) | % |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except per unit data) | |||||||||||||||||||||||
Same store F&I: | |||||||||||||||||||||||
Revenue | $ | 243,768 | $ | 236,731 | $ | 7,037 | 3.0 | % | |||||||||||||||
Gross profit per retail unit (excludes fleet) | 1,433 | 1,389 | 44 | 3.2 | % |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit data) | |||||||||||||||||||||||
Total used vehicle revenue: | |||||||||||||||||||||||
Same store | $ | 68,504 | $ | 33,462 | $ | 35,042 | 104.7 | % | |||||||||||||||
Acquisitions, open points and closures | 92,194 | 14,962 | 77,232 | NM | |||||||||||||||||||
Total as reported | $ | 160,698 | $ | 48,424 | $ | 112,274 | 231.9 | % | |||||||||||||||
Total used vehicle gross profit: | |||||||||||||||||||||||
Same store | $ | (804) | $ | 1,586 | $ | (2,390) | (150.7) | % | |||||||||||||||
Acquisitions, open points and closures | (1,359) | 405 | (1,764) | NM | |||||||||||||||||||
Total as reported | $ | (2,163) | $ | 1,991 | $ | (4,154) | (208.6) | % | |||||||||||||||
Total used vehicle unit sales: | |||||||||||||||||||||||
Same store | 3,273 | 1,671 | 1,602 | 95.9 | % | ||||||||||||||||||
Acquisitions, open points and closures | 4,425 | 729 | 3,696 | NM | |||||||||||||||||||
Total as reported | 7,698 | 2,400 | 5,298 | 220.8 | % |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit data) | |||||||||||||||||||||||
Total used vehicle revenue: | |||||||||||||||||||||||
Same store | $ | 148,449 | $ | 82,979 | $ | 65,470 | 78.9 | % | |||||||||||||||
Acquisitions, open points and closures | 274,764 | 43,025 | 231,739 | NM | |||||||||||||||||||
Total as reported | $ | 423,213 | $ | 126,004 | $ | 297,209 | 235.9 | % | |||||||||||||||
Total used vehicle gross profit: | |||||||||||||||||||||||
Same store | $ | (1,299) | $ | 3,980 | $ | (5,279) | (132.6) | % | |||||||||||||||
Acquisitions, open points and closures | (2,269) | 1,553 | (3,822) | NM | |||||||||||||||||||
Total as reported | $ | (3,568) | $ | 5,533 | $ | (9,101) | (164.5) | % | |||||||||||||||
Total used vehicle unit sales: | |||||||||||||||||||||||
Same store | 7,185 | 4,105 | 3,080 | 75.0 | % | ||||||||||||||||||
Acquisitions, open points and closures | 13,490 | 2,017 | 11,473 | NM | |||||||||||||||||||
Total as reported | 20,675 | 6,122 | 14,553 | 237.7 | % |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Total F&I revenue: | |||||||||||||||||||||||
Same store | $ | 7,132 | $ | 1,725 | $ | 5,407 | 313.4 | % | |||||||||||||||
Acquisitions, open points and closures | 8,840 | 861 | 7,979 | NM | |||||||||||||||||||
Total as reported | $ | 15,972 | $ | 2,586 | $ | 13,386 | 517.6 | % |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Total F&I revenue: | |||||||||||||||||||||||
Same store | $ | 13,601 | $ | 4,287 | $ | 9,314 | 217.3 | % | |||||||||||||||
Acquisitions, open points and closures | 27,816 | 2,399 | 25,417 | NM | |||||||||||||||||||
Total as reported | $ | 41,417 | $ | 6,686 | $ | 34,731 | 519.5 | % |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Reported used vehicle and F&I: | |||||||||||||||||||||||
Used vehicle revenue | $ | 160,698 | $ | 48,424 | $ | 112,274 | 231.9 | % | |||||||||||||||
Used vehicle gross profit | $ | (2,163) | $ | 1,991 | $ | (4,154) | (208.6) | % | |||||||||||||||
Used vehicle unit sales | 7,698 | 2,400 | 5,298 | 220.8 | % | ||||||||||||||||||
Used vehicle revenue per unit | $ | 20,875 | $ | 20,177 | $ | 698 | 3.5 | % | |||||||||||||||
F&I revenue | $ | 15,972 | $ | 2,586 | $ | 13,386 | 517.6 | % | |||||||||||||||
Combined used vehicle gross profit and F&I revenue | $ | 13,809 | $ | 4,577 | $ | 9,232 | 201.7 | % | |||||||||||||||
Total used vehicle and F&I gross profit per unit | $ | 1,794 | $ | 1,907 | $ | (113) | (5.9) | % |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Reported used vehicle and F&I: | |||||||||||||||||||||||
Used vehicle revenue | $ | 423,213 | $ | 126,004 | $ | 297,209 | 235.9 | % | |||||||||||||||
Used vehicle gross profit | $ | (3,568) | $ | 5,533 | $ | (9,101) | (164.5) | % | |||||||||||||||
Used vehicle unit sales | 20,675 | 6,122 | 14,553 | 237.7 | % | ||||||||||||||||||
Used vehicle revenue per unit | $ | 20,470 | $ | 20,582 | $ | (112) | (0.5) | % | |||||||||||||||
F&I revenue | $ | 41,417 | $ | 6,686 | $ | 34,731 | 519.5 | % | |||||||||||||||
Combined used vehicle gross profit and F&I revenue | $ | 37,849 | $ | 12,219 | $ | 25,630 | 209.8 | % | |||||||||||||||
Total used vehicle and F&I gross profit per unit | $ | 1,831 | $ | 1,996 | $ | (165) | (8.3) | % |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Same store used vehicle and F&I: | |||||||||||||||||||||||
Used vehicle revenue | $ | 68,504 | $ | 33,462 | $ | 35,042 | 104.7 | % | |||||||||||||||
Used vehicle gross profit | $ | (804) | $ | 1,586 | $ | (2,390) | (150.7) | % | |||||||||||||||
Used vehicle unit sales | 3,273 | 1,671 | 1,602 | 95.9 | % | ||||||||||||||||||
Used vehicle revenue per unit | $ | 20,930 | $ | 20,025 | $ | 905 | 4.5 | % | |||||||||||||||
F&I revenue | $ | 7,132 | $ | 1,725 | $ | 5,407 | 313.4 | % | |||||||||||||||
Combined used vehicle gross profit and F&I revenue | $ | 6,328 | $ | 3,311 | $ | 3,017 | 91.1 | % | |||||||||||||||
Total used vehicle and F&I gross profit per unit | $ | 1,933 | $ | 1,981 | $ | (48) | (2.4) | % |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Same store used vehicle and F&I: | |||||||||||||||||||||||
Used vehicle revenue | $ | 148,449 | $ | 82,979 | $ | 65,470 | 78.9 | % | |||||||||||||||
Used vehicle gross profit | $ | (1,299) | $ | 3,980 | $ | (5,279) | (132.6) | % | |||||||||||||||
Used vehicle unit sales | 7,185 | 4,105 | 3,080 | 75.0 | % | ||||||||||||||||||
Used vehicle revenue per unit | $ | 20,661 | $ | 20,214 | $ | 447 | 2.2 | % | |||||||||||||||
F&I revenue | $ | 13,601 | $ | 4,287 | $ | 9,314 | 217.3 | % | |||||||||||||||
Combined used vehicle gross profit and F&I revenue | $ | 12,302 | $ | 8,267 | $ | 4,035 | 48.8 | % | |||||||||||||||
Total used vehicle and F&I gross profit per unit | $ | 1,712 | $ | 2,014 | $ | (302) | (15.0) | % |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit data) | |||||||||||||||||||||||
Total wholesale vehicle revenue: | |||||||||||||||||||||||
Same store | $ | 2,859 | $ | 2,007 | $ | 852 | 42.5 | % | |||||||||||||||
Acquisitions, open points and closures | 2,338 | 556 | 1,782 | NM | |||||||||||||||||||
Total as reported | $ | 5,197 | $ | 2,563 | $ | 2,634 | 102.8 | % | |||||||||||||||
Total wholesale vehicle gross profit (loss): | |||||||||||||||||||||||
Same store | $ | 49 | $ | (66) | $ | 115 | 174.2 | % | |||||||||||||||
Acquisitions, open points and closures | (88) | 32 | (120) | NM | |||||||||||||||||||
Total as reported | $ | (39) | $ | (34) | $ | (5) | (14.7) | % | |||||||||||||||
Total wholesale vehicle unit sales: | |||||||||||||||||||||||
Same store | 472 | 571 | (99) | (17.3) | % | ||||||||||||||||||
Acquisitions, open points and closures | 453 | 102 | 351 | NM | |||||||||||||||||||
Total as reported | 925 | 673 | 252 | 37.4 | % |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit data) | |||||||||||||||||||||||
Total wholesale vehicle revenue: | |||||||||||||||||||||||
Same store | $ | 12,129 | $ | 4,780 | $ | 7,349 | 153.7 | % | |||||||||||||||
Acquisitions, open points and closures | 7,560 | 1,342 | 6,218 | NM | |||||||||||||||||||
Total as reported | $ | 19,689 | $ | 6,122 | $ | 13,567 | 221.6 | % | |||||||||||||||
Total wholesale vehicle gross profit (loss): | |||||||||||||||||||||||
Same store | $ | (7) | $ | (185) | $ | 178 | 96.2 | % | |||||||||||||||
Acquisitions, open points and closures | 635 | (42) | 677 | NM | |||||||||||||||||||
Total as reported | $ | 628 | $ | (227) | $ | 855 | 376.7 | % | |||||||||||||||
Total wholesale vehicle unit sales: | |||||||||||||||||||||||
Same store | 2,028 | 1,405 | 623 | 44.3 | % | ||||||||||||||||||
Acquisitions, open points and closures | 1,471 | 286 | 1,185 | NM | |||||||||||||||||||
Total as reported | 3,499 | 1,691 | 1,808 | 106.9 | % |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Reported wholesale vehicle: | |||||||||||||||||||||||
Revenue | $ | 5,197 | $ | 2,563 | $ | 2,634 | 102.8 | % | |||||||||||||||
Gross profit (loss) | $ | (39) | $ | (34) | $ | (5) | (14.7) | % | |||||||||||||||
Unit sales | 925 | 673 | 252 | 37.4 | % | ||||||||||||||||||
Revenue per unit | $ | 5,618 | $ | 3,808 | $ | 1,810 | 47.5 | % | |||||||||||||||
Gross profit (loss) per unit | $ | (42) | $ | (51) | $ | 9 | 17.6 | % | |||||||||||||||
Gross profit (loss) as a % of revenue | (0.8) | % | (1.3) | % | 50 | bps |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Reported wholesale vehicle: | |||||||||||||||||||||||
Revenue | $ | 19,689 | $ | 6,122 | $ | 13,567 | 221.6 | % | |||||||||||||||
Gross profit (loss) | $ | 628 | $ | (227) | $ | 855 | 376.7 | % | |||||||||||||||
Unit sales | 3,499 | 1,691 | 1,808 | 106.9 | % | ||||||||||||||||||
Revenue per unit | $ | 5,627 | $ | 3,620 | $ | 2,007 | 55.4 | % | |||||||||||||||
Gross profit (loss) per unit | $ | 179 | $ | (134) | $ | 313 | 233.6 | % | |||||||||||||||
Gross profit (loss) as a % of revenue | 3.2 | % | (3.7) | % | 690 | bps |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Same store wholesale vehicle: | |||||||||||||||||||||||
Revenue | $ | 2,859 | $ | 2,007 | $ | 852 | 42.5 | % | |||||||||||||||
Gross profit (loss) | $ | 49 | $ | (66) | $ | 115 | 174.2 | % | |||||||||||||||
Unit sales | 472 | 571 | (99) | (17.3) | % | ||||||||||||||||||
Revenue per unit | $ | 6,057 | $ | 3,515 | $ | 2,542 | 72.3 | % | |||||||||||||||
Gross profit (loss) per unit | $ | 104 | $ | (116) | $ | 220 | 189.7 | % | |||||||||||||||
Gross profit (loss) as a % of revenue | 1.7 | % | (3.3) | % | 500 | bps |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||||||||
Same store wholesale vehicle: | |||||||||||||||||||||||
Revenue | $ | 12,129 | $ | 4,780 | $ | 7,349 | 153.7 | % | |||||||||||||||
Gross profit (loss) | $ | (7) | $ | (185) | $ | 178 | 96.2 | % | |||||||||||||||
Unit sales | 2,028 | 1,405 | 623 | 44.3 | % | ||||||||||||||||||
Revenue per unit | $ | 5,981 | $ | 3,402 | $ | 2,579 | 75.8 | % | |||||||||||||||
Gross profit (loss) per unit | $ | (3) | $ | (132) | $ | 129 | 97.7 | % | |||||||||||||||
Gross profit (loss) as a % of revenue | (0.1) | % | (3.9) | % | 380 | bps |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Total Fixed Operations revenue: | |||||||||||||||||||||||
Same store | $ | 1,339 | $ | 2,817 | $ | (1,478) | (52.5) | % | |||||||||||||||
Acquisitions, open points and closures | 2,713 | 737 | 1,976 | 268.1 | % | ||||||||||||||||||
Total as reported | $ | 4,052 | $ | 3,554 | $ | 498 | 14.0 | % | |||||||||||||||
Total Fixed Operations gross profit: | |||||||||||||||||||||||
Same store | $ | (90) | $ | 1,269 | $ | (1,359) | (107.1) | % | |||||||||||||||
Acquisitions, open points and closures | 581 | 405 | 176 | 43.5 | % | ||||||||||||||||||
Total as reported | $ | 491 | $ | 1,674 | $ | (1,183) | (70.7) | % |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Total Fixed Operations revenue: | |||||||||||||||||||||||
Same store | $ | 4,760 | $ | 7,009 | $ | (2,249) | (32.1) | % | |||||||||||||||
Acquisitions, open points and closures | 8,511 | 2,157 | 6,354 | 294.6 | % | ||||||||||||||||||
Total as reported | $ | 13,271 | $ | 9,166 | $ | 4,105 | 44.8 | % | |||||||||||||||
Total Fixed Operations gross profit: | |||||||||||||||||||||||
Same store | $ | 439 | $ | 3,131 | $ | (2,692) | (86.0) | % | |||||||||||||||
Acquisitions, open points and closures | 1,947 | 1,085 | 862 | 79.4 | % | ||||||||||||||||||
Total as reported | $ | 2,386 | $ | 4,216 | $ | (1,830) | (43.4) | % |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Reported Fixed Operations: | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Customer pay | $ | 138 | $ | 334 | $ | (196) | (58.7) | % | |||||||||||||||
Internal, sublet and other | 3,914 | 3,220 | 694 | 21.6 | % | ||||||||||||||||||
Total revenue | $ | 4,052 | $ | 3,554 | $ | 498 | 14.0 | % | |||||||||||||||
Gross profit | |||||||||||||||||||||||
Customer pay | $ | 11 | $ | 115 | $ | (104) | (90.4) | % | |||||||||||||||
Internal, sublet and other | 480 | 1,559 | (1,079) | (69.2) | % | ||||||||||||||||||
Total gross profit | $ | 491 | $ | 1,674 | $ | (1,183) | (70.7) | % | |||||||||||||||
Gross profit as a % of revenue | |||||||||||||||||||||||
Customer pay | 8.0 | % | 34.4 | % | (2,640) | bps | |||||||||||||||||
Internal, sublet and other | 12.3 | % | 48.4 | % | (3,610) | bps | |||||||||||||||||
Total gross profit as a % of revenue | 12.1 | % | 47.1 | % | (3,500) | bps |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Reported Fixed Operations: | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Customer pay | $ | 864 | $ | 986 | $ | (122) | (12.4) | % | |||||||||||||||
Internal, sublet and other | 12,407 | 8,180 | 4,227 | 51.7 | % | ||||||||||||||||||
Total revenue | $ | 13,271 | $ | 9,166 | $ | 4,105 | 44.8 | % | |||||||||||||||
Gross profit | |||||||||||||||||||||||
Customer pay | $ | 236 | $ | 350 | $ | (114) | (32.6) | % | |||||||||||||||
Internal, sublet and other | 2,150 | 3,866 | (1,716) | (44.4) | % | ||||||||||||||||||
Total gross profit | $ | 2,386 | $ | 4,216 | $ | (1,830) | (43.4) | % | |||||||||||||||
Gross profit as a % of revenue | |||||||||||||||||||||||
Customer pay | 27.3 | % | 35.5 | % | (820) | bps | |||||||||||||||||
Internal, sublet and other | 17.3 | % | 47.3 | % | (3,000) | bps | |||||||||||||||||
Total gross profit as a % of revenue | 18.0 | % | 46.0 | % | (2,800) | bps |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Same store Fixed Operations: | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Customer pay | $ | 92 | $ | 231 | $ | (139) | (60.2) | % | |||||||||||||||
Internal, sublet and other | 1,247 | 2,586 | (1,339) | (51.8) | % | ||||||||||||||||||
Total revenue | $ | 1,339 | $ | 2,817 | $ | (1,478) | (52.5) | % | |||||||||||||||
Gross profit | |||||||||||||||||||||||
Customer pay | $ | 8 | $ | 77 | $ | (69) | (89.6) | % | |||||||||||||||
Internal, sublet and other | (98) | 1,192 | (1,290) | (108.2) | % | ||||||||||||||||||
Total gross profit | $ | (90) | $ | 1,269 | $ | (1,359) | (107.1) | % | |||||||||||||||
Gross profit as a % of revenue | |||||||||||||||||||||||
Customer pay | 8.7 | % | 33.3 | % | (2,460) | bps | |||||||||||||||||
Internal, sublet and other | (7.9) | % | 46.1 | % | (5,400) | bps | |||||||||||||||||
Total gross profit as a % of revenue | (6.7) | % | 45.0 | % | (5,170) | bps |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Same store Fixed Operations: | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Customer pay | $ | 519 | $ | 622 | $ | (103) | (16.6) | % | |||||||||||||||
Internal, sublet and other | 4,241 | 6,387 | (2,146) | (33.6) | % | ||||||||||||||||||
Total revenue | $ | 4,760 | $ | 7,009 | $ | (2,249) | (32.1) | % | |||||||||||||||
Gross profit | |||||||||||||||||||||||
Customer pay | $ | 131 | $ | 216 | $ | (85) | (39.4) | % | |||||||||||||||
Internal, sublet and other | 308 | 2,915 | (2,607) | (89.4) | % | ||||||||||||||||||
Total gross profit | $ | 439 | $ | 3,131 | $ | (2,692) | (86.0) | % | |||||||||||||||
Gross profit as a % of revenue | |||||||||||||||||||||||
Customer pay | 25.2 | % | 34.7 | % | (950) | bps | |||||||||||||||||
Internal, sublet and other | 7.3 | % | 45.6 | % | (3,830) | bps | |||||||||||||||||
Total gross profit as a % of revenue | 9.2 | % | 44.7 | % | (3,550) | bps |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit data) | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Franchised Dealerships Segment | $ | 2,284,931 | $ | 2,448,574 | $ | (163,643) | (6.7) | % | |||||||||||||||
EchoPark Segment | 185,918 | 57,127 | 128,791 | 225.4 | % | ||||||||||||||||||
Total revenues | $ | 2,470,849 | $ | 2,505,701 | $ | (34,852) | (1.4) | % | |||||||||||||||
Segment income (loss) (1): | |||||||||||||||||||||||
Franchised Dealerships Segment (2) | $ | 40,971 | $ | 51,486 | $ | (10,515) | (20.4) | % | |||||||||||||||
EchoPark Segment (3) | (5,026) | (4,606) | (420) | (9.1) | % | ||||||||||||||||||
Total segment income (loss) | 35,945 | 46,880 | (10,935) | (23.3) | % | ||||||||||||||||||
Interest expense, other, net | (13,313) | (13,028) | (285) | (2.2) | % | ||||||||||||||||||
Other income (expense), net | — | 4 | (4) | (100.0) | % | ||||||||||||||||||
Income (loss) from continuing operations before taxes | $ | 22,632 | $ | 33,856 | $ | (11,224) | (33.2) | % | |||||||||||||||
New and used vehicle unit sales volume: | |||||||||||||||||||||||
Franchised Dealerships Segment | 58,263 | 63,930 | (5,667) | (8.9) | % | ||||||||||||||||||
EchoPark Segment | 7,698 | 2,400 | 5,298 | 220.8 | % | ||||||||||||||||||
Total new and used vehicle unit sales volume | 65,961 | 66,330 | (369) | (0.6) | % |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands, except unit data) | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Franchised Dealerships Segment | $ | 6,879,783 | $ | 7,051,291 | $ | (171,508) | (2.4) | % | |||||||||||||||
EchoPark Segment | 497,589 | 147,978 | 349,611 | 236.3 | % | ||||||||||||||||||
Total revenues | $ | 7,377,372 | $ | 7,199,269 | $ | 178,103 | 2.5 | % | |||||||||||||||
Segment income (loss) (1): | |||||||||||||||||||||||
Franchised Dealerships Segment (2) | $ | 130,856 | $ | 125,553 | $ | 5,303 | 4.2 | % | |||||||||||||||
EchoPark Segment (3) | (46,699) | (17,585) | (29,114) | (165.6) | % | ||||||||||||||||||
Total segment income (loss) | 84,157 | 107,968 | (23,811) | (22.1) | % | ||||||||||||||||||
Interest expense, other, net | (40,144) | (39,200) | (944) | (2.4) | % | ||||||||||||||||||
Other income (expense), net | 107 | (14,490) | 14,597 | 100.7 | % | ||||||||||||||||||
Income (loss) from continuing operations before taxes | $ | 44,120 | $ | 54,278 | $ | (10,158) | (18.7) | % | |||||||||||||||
New and used vehicle unit sales volume: | |||||||||||||||||||||||
Franchised Dealerships Segment | 175,181 | 184,759 | (9,578) | (5.2) | % | ||||||||||||||||||
EchoPark Segment | 20,675 | 6,122 | 14,553 | 237.7 | % | ||||||||||||||||||
Total new and used vehicle unit sales volume | 195,856 | 190,881 | 4,975 | 2.6 | % |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
SG&A expenses: | |||||||||||||||||||||||
Compensation | $ | 175,393 | $ | 172,691 | $ | (2,702) | (1.6) | % | |||||||||||||||
Advertising | 14,652 | 15,846 | 1,194 | 7.5 | % | ||||||||||||||||||
Rent | 14,881 | 17,711 | 2,830 | 16.0 | % | ||||||||||||||||||
Other | 84,096 | 77,726 | (6,370) | (8.2) | % | ||||||||||||||||||
Total SG&A expenses | $ | 289,022 | $ | 283,974 | $ | (5,048) | (1.8) | % | |||||||||||||||
SG&A expenses as a % of gross profit: | |||||||||||||||||||||||
Compensation | 48.6 | % | 47.6 | % | (100) | bps | |||||||||||||||||
Advertising | 4.1 | % | 4.4 | % | 30 | bps | |||||||||||||||||
Rent | 4.1 | % | 4.9 | % | 80 | bps | |||||||||||||||||
Other | 23.4 | % | 21.4 | % | (200) | bps | |||||||||||||||||
Total SG&A expenses as a % of gross profit | 80.2 | % | 78.3 | % | (190) | bps |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
SG&A expenses: | |||||||||||||||||||||||
Compensation | $ | 558,071 | $ | 520,420 | $ | (37,651) | (7.2) | % | |||||||||||||||
Advertising | 46,938 | 46,448 | (490) | (1.1) | % | ||||||||||||||||||
Rent | 50,451 | 55,309 | 4,858 | 8.8 | % | ||||||||||||||||||
Other | 215,950 | 247,962 | 32,012 | 12.9 | % | ||||||||||||||||||
Total SG&A expenses | $ | 871,410 | $ | 870,139 | $ | (1,271) | (0.1) | % | |||||||||||||||
SG&A expenses as a % of gross profit: | |||||||||||||||||||||||
Compensation | 51.9 | % | 48.5 | % | (340) | bps | |||||||||||||||||
Advertising | 4.4 | % | 4.3 | % | (10) | bps | |||||||||||||||||
Rent | 4.7 | % | 5.2 | % | 50 | bps | |||||||||||||||||
Other | 20.0 | % | 23.0 | % | 300 | bps | |||||||||||||||||
Total SG&A expenses as a % of gross profit | 81.0 | % | 81.0 | % | — | bps |
Three Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Stated/coupon interest | $ | 12,712 | $ | 12,255 | $ | (457) | (3.7) | % | |||||||||||||||
Deferred loan cost amortization | 611 | 591 | (20) | (3.4) | % | ||||||||||||||||||
Interest rate hedge expense (benefit) | (130) | 641 | 771 | 120.3 | % | ||||||||||||||||||
Capitalized interest | (484) | (579) | (95) | (16.4) | % | ||||||||||||||||||
Other interest | 604 | 120 | (484) | (403.3) | % | ||||||||||||||||||
Total interest expense, other, net | $ | 13,313 | $ | 13,028 | $ | (285) | (2.2) | % |
Nine Months Ended September 30, | Better / (Worse) | ||||||||||||||||||||||
2018 | 2017 | Change | % Change | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Stated/coupon interest | $ | 38,468 | $ | 36,403 | $ | (2,065) | (5.7) | % | |||||||||||||||
Discount/premium amortization | — | 28 | 28 | 100.0 | % | ||||||||||||||||||
Deferred loan cost amortization | 1,828 | 1,784 | (44) | (2.5) | % | ||||||||||||||||||
Interest rate hedge expense (benefit) | (81) | 2,231 | 2,312 | 103.6 | % | ||||||||||||||||||
Capitalized interest | (1,133) | (1,589) | (456) | (28.7) | % | ||||||||||||||||||
Other interest | 1,062 | 343 | (719) | (209.6) | % | ||||||||||||||||||
Total interest expense, other, net | $ | 40,144 | $ | 39,200 | $ | (944) | (2.4) | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Income (loss) from operations | $ | (148) | $ | (119) | $ | (478) | $ | (561) | |||||||||||||||
Lease exit accrual adjustments and charges | (104) | (362) | (319) | (1,089) | |||||||||||||||||||
Pre-tax income (loss) | $ | (252) | $ | (481) | $ | (797) | $ | (1,650) | |||||||||||||||
Total revenues | $ | — | $ | — | $ | — | $ | — |
September 30, 2018 | December 31, 2017 | ||||||||||
(In thousands) | |||||||||||
Cash and cash equivalents | $ | 7,582 | $ | 6,352 | |||||||
Availability under the 2016 Revolving Credit Facility | 192,765 | 155,304 | |||||||||
Availability under our used vehicle floor plan facilities | 14,377 | 7,104 | |||||||||
Floor plan deposit balance | 5,000 | 3,000 | |||||||||
Total available liquidity resources | $ | 219,724 | $ | 171,760 |
Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1) | ||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||
July 2018 | — | $ | — | — | $ | 84,218 | |||||||||||||||||
August 2018 | — | $ | — | — | $ | 84,218 | |||||||||||||||||
September 2018 | 32,207 | $ | 19.95 | 32,207 | $ | 83,575 | |||||||||||||||||
Total | 32,207 | 32,207 |
(In thousands) | |||||
January 2016 authorization | $ | 100,000 | |||
February 2017 authorization | 100,000 | ||||
Total active program repurchases prior to September 30, 2018 | (116,425) | ||||
Current remaining availability as of September 30, 2018 | $ | 83,575 |
Exhibit No. | Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
3.3 | ||||||||
3.4 | ||||||||
3.5 | ||||||||
10.1 | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1** | ||||||||
32.2** | ||||||||
101.INS* | XBRL Instance Document. | |||||||
101.SCH* | XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document. |
SONIC AUTOMOTIVE, INC. | ||||||||
Date: October 25, 2018 | By: | /s/ DAVID BRUTON SMITH | ||||||
David Bruton Smith | ||||||||
Chief Executive Officer | ||||||||
Date: October 25, 2018 | By: | /s/ HEATH R. BYRD | ||||||
Heath R. Byrd | ||||||||
Executive Vice President and Chief Financial Officer |
October 25, 2018 | |||||
By: | /s/ HEATH R. BYRD | ||||
Heath R. Byrd | |||||
Executive Vice President and Chief Financial Officer |
October 25, 2018 | |||||
By: | /s/ DAVID BRUTON SMITH | ||||
David Bruton Smith | |||||
Chief Executive Officer |
/s/ HEATH R. BYRD | ||
Heath R. Byrd | ||
Executive Vice President and Chief Financial Officer | ||
October 25, 2018 |
/s/ DAVID BRUTON SMITH | ||
David Bruton Smith | ||
Chief Executive Officer | ||
October 25, 2018 |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Oct. 23, 2018 |
|
Document Information [Line Items] | ||
Entity Registrant Name | SONIC AUTOMOTIVE INC | |
Entity Central Index Key | 0001043509 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | SAH | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 30,721,226 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 12,029,375 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Revenues: | ||||
Revenues | $ 2,470,849,000 | $ 2,505,701,000 | $ 7,377,372,000 | $ 7,199,269,000 |
Cost of Sales: | ||||
Cost of Sales | (2,110,313,000) | (2,143,079,000) | (6,301,962,000) | (6,125,683,000) |
Gross profit | 360,536,000 | 362,622,000 | 1,075,410,000 | 1,073,586,000 |
Selling, general and administrative expenses | (289,022,000) | (283,974,000) | (871,410,000) | (870,139,000) |
Impairment charges | 0 | (200,000) | (13,961,000) | (3,315,000) |
Depreciation and amortization | (23,377,000) | (22,686,000) | (71,067,000) | (65,751,000) |
Operating income (loss) | 48,137,000 | 55,762,000 | 118,972,000 | 134,381,000 |
Other income (expense): | ||||
Interest expense, floor plan | (12,192,000) | (8,882,000) | (34,815,000) | (26,413,000) |
Interest expense, other, net | (13,313,000) | (13,028,000) | (40,144,000) | (39,200,000) |
Other income (expense), net | 0 | 4,000 | 107,000 | (14,490,000) |
Total other income (expense) | (25,505,000) | (21,906,000) | (74,852,000) | (80,103,000) |
Income (loss) from continuing operations before taxes | 22,632,000 | 33,856,000 | 44,120,000 | 54,278,000 |
Provision for income taxes for continuing operations - benefit (expense) | (7,331,000) | (14,126,000) | (13,711,000) | (22,254,000) |
Income (loss) from continuing operations | 15,301,000 | 19,730,000 | 30,409,000 | 32,024,000 |
Discontinued operations: | ||||
Income (loss) from discontinued operations before taxes | (252,000) | (481,000) | (797,000) | (1,650,000) |
Provision for income taxes for discontinued operations - benefit (expense) | 69,000 | 191,000 | 218,000 | 657,000 |
Income (loss) from discontinued operations | (183,000) | (290,000) | (579,000) | (993,000) |
Net income (loss) | $ 15,118,000 | $ 19,440,000 | $ 29,830,000 | $ 31,031,000 |
Basic earnings (loss) per common share: | ||||
Earnings (loss) per share from continuing operations (usd per share) | $ 0.36 | $ 0.45 | $ 0.71 | $ 0.72 |
Earnings (loss) per share from discontinued operations (usd per share) | (0.01) | 0 | (0.01) | (0.02) |
Earnings (loss) per common share (usd per share) | $ 0.35 | $ 0.45 | $ 0.70 | $ 0.70 |
Weighted average common shares outstanding | 42,673 | 43,496 | 42,708 | 44,281 |
Diluted earnings (loss) per common share: | ||||
Earnings (loss) per share from continuing operations (usd per share) | $ 0.36 | $ 0.45 | $ 0.71 | $ 0.72 |
Earnings (loss) per share from discontinued operations (usd per share) | (0.01) | (0.01) | (0.02) | (0.02) |
Earnings (loss) per common share (usd per share) | $ 0.35 | $ 0.44 | $ 0.69 | $ 0.70 |
Weighted average common shares outstanding | 42,994 | 43,811 | 42,964 | 44,585 |
Dividends declared per common share (usd per share) | $ 0.06 | $ 0.05 | $ 0.18 | $ 0.15 |
Total vehicles | ||||
Revenues: | ||||
Revenues | $ 2,029,670,000 | $ 2,065,123,000 | $ 6,039,852,000 | $ 5,875,564,000 |
Cost of Sales: | ||||
Cost of Sales | (1,934,011,000) | (1,963,032,000) | (5,763,827,000) | (5,574,895,000) |
New vehicles | ||||
Revenues: | ||||
Revenues | 1,235,094,000 | 1,362,301,000 | 3,654,510,000 | 3,809,302,000 |
Cost of Sales: | ||||
Cost of Sales | (1,173,453,000) | (1,296,063,000) | (3,478,802,000) | (3,622,264,000) |
Used vehicles | ||||
Revenues: | ||||
Revenues | 745,998,000 | 659,724,000 | 2,217,616,000 | 1,936,088,000 |
Cost of Sales: | ||||
Cost of Sales | (710,681,000) | (620,579,000) | (2,108,219,000) | (1,816,076,000) |
Wholesale vehicles | ||||
Revenues: | ||||
Revenues | 48,578,000 | 43,098,000 | 167,726,000 | 130,174,000 |
Cost of Sales: | ||||
Cost of Sales | (49,877,000) | (46,390,000) | (176,806,000) | (136,555,000) |
Parts, service and collision repair | ||||
Revenues: | ||||
Revenues | 343,118,000 | 347,717,000 | 1,041,630,000 | 1,060,873,000 |
Cost of Sales: | ||||
Cost of Sales | (176,302,000) | (180,047,000) | (538,135,000) | (550,788,000) |
Finance, insurance and other, net | ||||
Revenues: | ||||
Revenues | $ 98,061,000 | $ 92,861,000 | $ 295,890,000 | $ 262,832,000 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 15,118 | $ 19,440 | $ 29,830 | $ 31,031 |
Other comprehensive income (loss) before taxes: | ||||
Change in fair value of interest rate swap and interest rate cap agreements | 533 | 747 | 5,736 | 2,891 |
Provision for income tax benefit (expense) related to components of other comprehensive income (loss) | (145) | (284) | (1,563) | (1,099) |
Other comprehensive income (loss) | 388 | 463 | 4,173 | 1,792 |
Comprehensive income (loss) | $ 15,506 | $ 19,903 | $ 34,003 | $ 32,823 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Convertible preferred stock issued | 0 | 0 |
Class A common stock | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 64,197,385 | 63,456,698 |
Common stock, shares outstanding | 30,721,226 | 31,166,205 |
Treasury stock, shares | 33,476,159 | 32,290,493 |
Class B common stock | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 12,029,375 | 12,029,375 |
Common stock, shares outstanding | 12,029,375 | 12,029,375 |
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
Total |
Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Class A Common Stock
Common Stock
|
Class A Common Stock
Treasury Stock
|
Class B Common Stock
Common Stock
|
||
---|---|---|---|---|---|---|---|---|---|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Cumulative effect of change in accounting principle | [1] | $ 3,918 | $ 3,918 | ||||||
Beginning balance at Dec. 31, 2017 | 786,760 | $ 732,854 | 625,356 | $ 1,307 | $ 635 | $ (573,513) | $ 121 | ||
Beginning balance (shares) at Dec. 31, 2017 | 63,457 | 32,290 | 12,029 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares awarded under stock compensation plan | 352 | 345 | $ 7 | ||||||
Shares awarded under stock compensation plan (shares) | 740 | ||||||||
Purchase of treasury stock | (24,110) | $ (24,110) | |||||||
Purchases of treasury stock (shares) | (1,186) | ||||||||
Change in fair value of interest rate swap and interest rate cap agreements, net of tax expense of $1,563 | 4,173 | 4,173 | |||||||
Restricted stock amortization | 10,589 | 10,589 | |||||||
Net income (loss) | 29,830 | 29,830 | |||||||
Dividends declared | (7,668) | (7,668) | |||||||
Ending balance at Sep. 30, 2018 | $ 803,844 | $ 743,788 | $ 651,436 | $ 5,480 | $ 642 | $ (597,623) | $ 121 | ||
Ending balance (shares) at Sep. 30, 2018 | 64,197 | 33,476 | 12,029 | ||||||
|
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2018
USD ($)
| |
Statement of Stockholders' Equity [Abstract] | |
Tax effect on fair value of interest rate swap and rate cap agreements | $ 1,563 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Statement of Cash Flows [Abstract] | ||
Tax effect on fair value of interest rate swap and rate cap agreements | $ 1,563 | $ 1,099 |
Summary of Significant Accounting Policies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation – The accompanying condensed consolidated financial statements of Sonic Automotive, Inc. and its wholly owned subsidiaries (“Sonic,” the “Company,” “we,” “us” and “our”) for the three and nine months ended September 30, 2018 and 2017 are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and applicable rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The accompanying condensed consolidated financial statements reflect, in the opinion of management, all material normal recurring adjustments necessary to fairly state the financial position, results of operations and cash flows for the periods presented. The operating results for interim periods are not necessarily indicative of the results to be expected for the entire fiscal year or future interim periods, because the first quarter historically has contributed less operating profit than the second, third and fourth quarters. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2017. Recent Accounting Pronouncements – In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2014-09 as well as several subsequent amendments to amend the accounting guidance on revenue recognition. The amendments to the revenue recognition accounting guidance are included in Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers,” and are intended to provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices and improve disclosure requirements. The amendments to this guidance must be applied using either of the following transition methods: (1) a full retrospective approach reflecting the application of the amendments in each prior reporting period with the option to elect certain practical expedients; or (2) a modified retrospective approach with the cumulative effect of initially applying the amendments recognized at the date of adoption (which requires additional footnote disclosures). These amendments were effective for reporting periods beginning after December 15, 2017. On January 1, 2018, Sonic adopted ASC 606 (the “new revenue standard”) using the modified retrospective transition approach applied to contracts not completed as of the date of adoption. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. The comparative financial information has not been restated and continues to be reported under the accounting standards in effect for that period. We do not expect the adoption of the new revenue standard to have a material impact on our net income on an ongoing basis. Under the new revenue standard, revenue is recognized when a customer obtains control of promised goods or services and in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. The principles apply a five-step model that includes: (1) identifying the contract(s) with the customer; (2) identifying the performance obligation(s) in the contract(s); (3) determining the transaction price; (4) allocating the transaction price to the performance obligation(s) in the contract(s); and (5) recognizing revenue as the performance obligation(s) are satisfied. The new revenue standard also requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Sonic does not include the cost of obtaining contracts within the related revenue streams. Sonic has elected the practical expedient to expense the costs to obtain a contract when incurred. During the implementation process, management evaluated its established business processes, revenue transaction streams and accounting policies, and generally expects similar performance obligations to result under the new revenue standard as compared with prior U.S. GAAP. Management identified its material revenue streams to be (1) the sale of new vehicles; (2) the sale of used vehicles to retail customers; (3) the sale of wholesale used vehicles at third-party auctions; (4) the arrangement of vehicle financing and the sale of service and other insurance contracts; and (5) the performance of vehicle maintenance and repair services and the sale of related parts and accessories. As a result of this evaluation during the implementation process, management expects the amounts and timing of revenue recognition to generally remain the same, with the exception of the timing of revenue recognition related to: (1) service and collision repair orders that are incomplete as of a reporting date (“work in process”) and (2) certain retrospective finance and insurance revenue earned in periods subsequent to the completion of the initial performance obligation (“F&I retro revenues”), both of which are subject to accelerated recognition under the new revenue standard. Work in process revenues are recognized over time based on the completed work to date and F&I retro revenues are recognized when the product contract has been executed with the end customer and are estimated each reporting period based on the expected value method using historical and projected data. F&I retro revenues, which represent variable consideration, subject to a constraint, are to be included in the transaction price and recognized when or as the performance obligation is satisfied. F&I retro revenues can vary based on a variety of factors, including number of contracts and history of cancellations and claims. Accordingly, Sonic utilizes this historical and projected data to constrain the consideration to the extent that it is probable that a significant reversal in the amount of cumulative revenue will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Generally, performance conditions are satisfied when the associated vehicle is either delivered or returned to a customer and customer acceptance has occurred or over time as the maintenance and repair services are performed. Sonic does not have any revenue streams with significant financing components as payments are typically received within a short period of time following completion of the performance obligation(s). The cumulative effect of the adjustments to our September 30, 2018 condensed consolidated statements of income and January 1, 2018 condensed consolidated balance sheet for the adoption of ASC 606 were as follows:
(1) Contract assets are included in receivables, net in the accompanying condensed consolidated balance sheets. Receivables, net at September 30, 2018 includes approximately $4.7 million related to work in process and a contract asset of approximately $8.0 million related to F&I retro revenues. Changes in contract assets from January 1, 2018 to September 30, 2018 were primarily due to ordinary business activity. In February 2016, the FASB issued ASU 2016-02 to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in this ASU require that leases are classified as either finance or operating leases, a right-of-use asset and lease liability is recognized in the statement of financial position and repayments are classified within operating activities in the statement of cash flows. The amendments in this ASU are to be applied using a modified retrospective approach and are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 (early adoption is permitted). We plan to adopt this ASU effective January 1, 2019. While management is still in the process of quantifying the impact of adopting the provisions of this ASU, management expects that upon adoption of this ASU, the presentation of certain items in our consolidated financial position, cash flows and other disclosures will be materially impacted, primarily due to the recognition of a right-of-use asset and an associated liability in our consolidated balance sheets and a change in the timing and classification of certain items in our consolidated statements of income and consolidated statements of cash flows as a result of the derecognition of the lease liability. We are currently implementing the changes required under this ASU by identifying and assessing our existing lease contracts and importing lease data into specialized lease accounting software to meet the future reporting requirements of this ASU. As part of our implementation plan, we are also evaluating the changes in internal controls and processes that are necessary to implement this ASU, but do not expect material changes. We expect to provide a quantitative disclosure of the impact of the adoption of this ASU in our Form 10-K for the year ending December 31, 2018. In August 2017, the FASB issued ASU 2017-12 which amends the hedge accounting recognition and presentation requirements in ASC Topic 815, Derivatives and Hedging. This ASU expands and refines hedge accounting for both non-financial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. It also includes certain targeted improvements to simplify the application of current guidance related to hedge accounting. For public companies, this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 (early adoption is permitted). We do not believe the effects of this ASU will materially impact our consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, which allows the reclassification of stranded tax effects, as a result of the Tax Cuts and Jobs Acts of 2017, from accumulated other comprehensive income to retained earnings. For public companies, this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 (early adoption is permitted). We are currently in the process of evaluating the effects of this ASU on our consolidated financial statements. In June 2018, the FASB issued ASU 2018-07 to expand the scope of ASC Topic 718, Compensation - Stock Compensation, to include share-based payment transactions for acquiring goods and services from non-employees. For public companies, this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 (early adoption is permitted). We are currently in the process of evaluating the effects of this ASU on our consolidated financial statements. Principles of Consolidation – All of our subsidiaries are wholly owned and consolidated in the accompanying condensed consolidated financial statements, except for one 50%-owned dealership that is accounted for under the equity method. All material intercompany balances and transactions have been eliminated in the accompanying condensed consolidated financial statements. Income Tax Expense – Beginning January 1, 2018, the federal corporate income tax rate changed from 35.0% to 21.0% along with other tax provision changes that affect the deductibility of certain expenses. Sonic considered these items in its calculation of income tax amounts as of September 30, 2018 and for the three and nine months ended September 30, 2018. The overall effective tax rate from continuing operations was 32.4% and 31.1% for the three and nine months ended September 30, 2018, respectively, and 41.7% and 41.0% for the three and nine months ended September 30, 2017, respectively. Income tax expense for the three months ended September 30, 2018 includes a $0.8 million discrete charge for non-deductible executive officer compensation related to executive transition costs. Income tax expense for the nine months ended September 30, 2018 includes a $0.8 million discrete charge for non-deductible executive officer compensation related to executive transition costs, a $0.2 million discrete charge related to changes in uncertain tax positions and a $0.6 million discrete charge for non-deductible book goodwill related to dealership dispositions, offset partially by a $0.9 million discrete benefit related to vested or exercised stock compensation. Income tax expense for the three months ended September 30, 2017 includes a $0.4 million discrete charge related to a non-deductible asset impairment charge. Income tax expense for the nine months ended September 30, 2017 includes a $0.4 million discrete charge related to a non-deductible asset impairment charge and a benefit of approximately $0.5 million as a result of the adoption of ASU 2016-09 which requires all book-tax differences related to the exercise of stock options or vesting of restricted stock or restricted stock units to flow through the provision for income taxes. Sonic’s effective tax rate varies from year to year based on the distribution of taxable income between states in which the Company operates and other tax adjustments. Sonic expects the annual effective tax rate in future periods to fall within a range of 26.0% to 28.0% before the impact, if any, of changes in valuation allowances related to deferred income tax assets or discrete tax adjustments.
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Business Acquisitions and Dispositions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisitions and Dispositions | Business Acquisitions and DispositionsAcquisitions – Sonic did not acquire any businesses during the three and nine months ended September 30, 2018. During the three months ended September 30, 2017, Sonic acquired a pre-owned vehicle business for approximately $76.6 million. Dispositions – Sonic disposed of six franchised dealerships during the nine months ended September 30, 2018 that generated net cash of approximately $121.9 million. In addition to these dispositions, Sonic terminated one luxury franchised dealership and ceased operations at three stores in our EchoPark Segment. Sonic disposed of one mid-line import franchised dealership during the three months ended September 30, 2017 that generated net cash of approximately $22.6 million. Revenues and other activities associated with disposed franchised dealerships classified as discontinued operations were as follows:
Revenues and other activities associated with disposed franchised dealerships that remain in continuing operations were as follows:
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories consist of the following:
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Property and Equipment |
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Property and Equipment | Property and Equipment Property and equipment, net consists of the following:
(1) Classified in other current assets in the accompanying condensed consolidated balance sheets. In the three and nine months ended September 30, 2018, capital expenditures were approximately $34.3 million and $133.9 million, respectively, and in the three and nine months ended September 30, 2017, capital expenditures were approximately $60.7 million and $181.9 million, respectively. Capital expenditures in all periods were primarily related to real estate acquisitions, construction of new franchised dealerships and EchoPark stores, building improvements and equipment purchased for use in our franchised dealerships and EchoPark stores. Assets held for sale as of September 30, 2018 consists of real property not being used in operations that we expect to dispose of in the next 12 months. There were no impairment charges for the three months ended September 30, 2018. Impairment charges for the nine months ended September 30, 2018 were approximately $14.0 million, which include the write-off of certain costs associated with internally developed software as well as the write-off of capitalized costs associated with the abandonment of certain construction projects. Impairment charges for the three and nine months ended September 30, 2017 were approximately $0.2 million and $3.3 million, respectively, which include the write-off of goodwill and property and equipment related to the closure of two pre-owned stores that were purchased in 2016 as well as the write-off of capitalized costs associated with the abandonment of certain construction projects.
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Goodwill and Intangible Assets |
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Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible AssetsThe carrying amount of goodwill was approximately $510.2 million and $525.8 million as of September 30, 2018 and December 31, 2017, respectively. The carrying amount of goodwill is net of accumulated impairment losses of approximately $797.6 million as of both September 30, 2018 and December 31, 2017. The carrying amount of franchise assets was approximately $67.8 million and $69.9 million as of September 30, 2018 and December 31, 2017, respectively. The changes in the carrying amount of both goodwill and franchise assets are related to the disposition of several franchised dealerships during the nine months ended September 30, 2018. At December 31, 2017, Sonic had approximately $4.7 million of definite life intangibles related to favorable lease agreements. After the effect of amortization of the definite life intangibles, the balance recorded at September 30, 2018 was approximately $4.2 million. Both franchise assets and favorable lease agreement assets are included in other intangible assets, net in the accompanying condensed consolidated balance sheets. |
Long-Term Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-Term Debt Long-term debt consists of the following:
(1) The interest rate on the 2016 Revolving Credit Facility (as defined below) was 250 and 225 basis points above the London Interbank Offer Rate (“LIBOR”) at September 30, 2018 and December 31, 2017, respectively. 2016 Credit Facilities On November 30, 2016, Sonic entered into an amended and restated syndicated revolving credit facility (the “2016 Revolving Credit Facility”) and amended and restated syndicated new and used vehicle floor plan credit facilities (the “2016 Floor Plan Facilities” and, together with the 2016 Revolving Credit Facility, the “2016 Credit Facilities”), which are scheduled to mature on November 30, 2021. Availability under the 2016 Revolving Credit Facility is calculated as the lesser of $250.0 million or a borrowing base calculated based on certain eligible assets, less the aggregate face amount of any outstanding letters of credit under the 2016 Revolving Credit Facility (the “2016 Revolving Borrowing Base”). The 2016 Revolving Credit Facility may be increased at Sonic’s option up to $300.0 million upon satisfaction of certain conditions. As of September 30, 2018, the 2016 Revolving Borrowing Base was approximately $222.5 million based on balances as of such date. As of September 30, 2018, Sonic had approximately $13.5 million of outstanding borrowings and approximately $16.2 million in outstanding letters of credit under the 2016 Revolving Credit Facility, resulting in total borrowing availability of approximately $192.8 million under the 2016 Revolving Credit Facility. The 2016 Floor Plan Facilities are comprised of a new vehicle revolving floor plan facility (the “2016 New Vehicle Floor Plan Facility”) and a used vehicle revolving floor plan facility (the “2016 Used Vehicle Floor Plan Facility”), subject to a borrowing base, in a combined amount of up to $1.015 billion. We may, under certain conditions, request an increase in the 2016 Floor Plan Facilities to a maximum borrowing limit of up to $1.265 billion, which shall be allocated between the 2016 New Vehicle Floor Plan Facility and the 2016 Used Vehicle Floor Plan Facility as we request, with no more than 30% of the aggregate commitments allocated to the commitments under the 2016 Used Vehicle Floor Plan Facility. Outstanding obligations under the 2016 Floor Plan Facilities are guaranteed by us and certain of our subsidiaries and are secured by a pledge of substantially all of our and our subsidiaries’ assets. The amounts outstanding under the 2016 Credit Facilities bear interest at variable rates based on specified percentages above LIBOR. We agreed under the 2016 Credit Facilities not to pledge any assets to any third parties (other than those explicitly allowed under the amended terms of the 2016 Credit Facilities), including other lenders, subject to certain stated exceptions, including floor plan financing arrangements. In addition, the 2016 Credit Facilities contain certain negative covenants, including covenants which could restrict or prohibit indebtedness, liens, the payment of dividends, capital expenditures and material dispositions and acquisitions of assets, as well as other customary covenants and default provisions. Specifically, the 2016 Credit Facilities permit cash dividends on our Class A and Class B Common Stock so long as no event of default (as defined in the 2016 Credit Facilities) has occurred and is continuing and provided that we remain in compliance with all financial covenants under the 2016 Credit Facilities. 5.0% Notes On May 9, 2013, Sonic issued $300.0 million in aggregate principal amount of unsecured senior subordinated 5.0% Notes, which are scheduled to mature on May 15, 2023. The 5.0% Notes were issued at a price of 100.0% of the principal amount thereof. The 5.0% Notes are guaranteed by Sonic’s domestic operating subsidiaries. Interest on the 5.0% Notes is payable semi-annually in arrears on May 15 and November 15 of each year. On September 30, 2016, Sonic repurchased approximately $10.7 million of the outstanding 5.0% Notes for approximately $10.6 million in cash, plus accrued and unpaid interest related thereto. Sonic may redeem the remaining outstanding 5.0% Notes, in whole or in part, at any time. The indenture governing the 5.0% Notes contains certain specified restrictive covenants. Sonic has agreed not to pledge any assets to any third-party lender of senior subordinated debt except under certain limited circumstances. Sonic also has agreed to certain other limitations or prohibitions concerning the incurrence of other indebtedness, guarantees, liens, certain types of investments, certain transactions with affiliates, mergers, consolidations, issuance of preferred stock, cash dividends to stockholders, distributions, redemptions and the sale, assignment, lease, conveyance or disposal of certain assets. Specifically, the indenture governing the 5.0% Notes limits Sonic’s ability to pay quarterly cash dividends on Sonic’s Class A and Class B Common Stock in excess of $0.10 per share. Sonic may only pay quarterly cash dividends on Sonic’s Class A and Class B Common Stock if Sonic complies with the terms of the indenture governing the 5.0% Notes. Sonic was in compliance with all restrictive covenants in the indenture governing the 5.0% Notes as of September 30, 2018. 6.125% Notes On March 10, 2017, Sonic issued $250.0 million in aggregate principal amount of unsecured senior subordinated 6.125% Notes, which are scheduled to mature on March 15, 2027. The 6.125% Notes were issued at a price of 100.0% of the principal amount thereof. Sonic used the net proceeds from the issuance of the 6.125% Notes (i) to repurchase all of its then outstanding 7.0% Senior Subordinated Notes due 2022 on March 27, 2017 (the “7.0% Notes”) and (ii) for other general corporate purposes. The 6.125% Notes are guaranteed by Sonic’s domestic operating subsidiaries. Interest on the 6.125% Notes is payable semi-annually in arrears on March 15 and September 15 of each year. Sonic may redeem the 6.125% Notes, in whole or in part, at any time on or after March 15, 2022. The indenture governing the 6.125% Notes contains certain specified restrictive covenants. Sonic has agreed not to pledge any assets to any third-party lender of senior subordinated debt except under certain limited circumstances. Sonic also has agreed to certain other limitations or prohibitions concerning the incurrence of other indebtedness, guarantees, liens, certain types of investments, certain transactions with affiliates, mergers, consolidations, issuance of preferred stock, cash dividends to stockholders, distributions, redemptions and the sale, assignment, lease, conveyance or disposal of certain assets. Specifically, the indenture governing the 6.125% Notes limits Sonic’s ability to pay quarterly cash dividends on Sonic’s Class A and Class B Common Stock in excess of $0.12 per share. Sonic may only pay quarterly cash dividends on Sonic’s Class A and Class B Common Stock if Sonic complies with the terms of the indenture governing the 6.125% Notes. Sonic was in compliance with all restrictive covenants in the indenture governing the 6.125% Notes as of September 30, 2018. Mortgage Notes During the nine months ended September 30, 2018, Sonic obtained approximately $21.1 million in mortgage financing related to three of its operating locations. As of September 30, 2018, the weighted average interest rate was 4.61% and the total outstanding mortgage principal balance was approximately $410.0 million. These mortgage notes require monthly payments of principal and interest through their respective maturities, are secured by the underlying properties and contain certain cross-default provisions. Maturity dates for these mortgage notes range between 2018 and 2033. Other Other debt consists of capital lease obligations, which increased approximately $35.4 million during the nine months ended September 30, 2018 due to several new lease contracts executed in the three months ended September 30, 2018 meeting the criteria to be treated as a capital lease obligation. The recorded capital lease obligation and corresponding lease asset will be amortized into earnings over the term of the agreements. Covenants Under the 2016 Credit Facilities, Sonic agreed not to pledge any assets to any third parties (other than those explicitly allowed under the amended terms of the 2016 Credit Facilities), including other lenders, subject to certain stated exceptions, including floor plan financing arrangements. In addition, the 2016 Credit Facilities contain certain negative covenants, including covenants which could restrict or prohibit indebtedness, liens, the payment of dividends, capital expenditures and material dispositions and acquisitions of assets, as well as other customary covenants and default provisions. Sonic was in compliance with the covenants under the 2016 Credit Facilities as of September 30, 2018. Financial covenants include required specified ratios (as each is defined in the 2016 Credit Facilities) of:
The 2016 Credit Facilities contain events of default, including cross defaults to other material indebtedness, change of control events and other events of default customary for syndicated commercial credit facilities. Upon the future occurrence of an event of default, Sonic could be required to immediately repay all outstanding amounts under the 2016 Credit Facilities. After giving effect to the applicable restrictions on the payment of dividends under its debt agreements, as of September 30, 2018, Sonic had approximately $151.8 million of net income and retained earnings free of such restrictions. Sonic was in compliance with all restrictive covenants under its debt agreements as of September 30, 2018. In addition, many of Sonic’s facility leases are governed by a guarantee agreement between the landlord and Sonic that contains financial and operating covenants. The financial covenants under the guarantee agreement are identical to those under the 2016 Credit Facilities with the exception of one financial covenant related to the ratio of EBTDAR to Rent (as defined in the guarantee agreement) with a required ratio of no less than 1.50 to 1.00. As of September 30, 2018, the ratio was 3.55 to 1.00. Derivative Instruments and Hedging Activities Sonic has interest rate cap agreements designated as hedging instruments to limit its exposure to increases in LIBOR rates above certain levels. Under the terms of these interest rate caps, interest rates reset monthly. The fair value of these interest rate cap positions at September 30, 2018 was an asset of approximately $8.6 million, with approximately $6.6 million included in other assets and approximately $2.0 million included in other current assets in the accompanying condensed consolidated balance sheets. During the nine months ended September 30, 2018, Sonic terminated all of its previously outstanding interest rate cash flow swap agreements for net cash proceeds of approximately $4.8 million, which will be amortized into income as a reduction of interest expense, other, net on a ratable basis over the original term of these agreements (through July 1, 2020). The fair value of the outstanding interest rate swap and interest rate cap positions at December 31, 2017 was a net asset of approximately $4.7 million, with approximately $5.1 million included in other assets and approximately $0.9 million included in other current assets in the accompanying condensed consolidated balance sheets, offset partially by approximately $1.0 million included in other accrued liabilities and approximately $0.3 million included in other long-term liabilities in the accompanying condensed consolidated balance sheets. Under the terms of the interest rate cap agreements, Sonic will receive and pay interest based on the following:
(1) Under these interest rate cap agreements, no payment to or from the counterparty will occur unless the stated receive rate exceeds the stated pay rate, in which case a net payment to Sonic from the counterparty based on the spread between the receive rate and the pay rate will be recognized as a reduction of interest expense, other, net in the accompanying condensed consolidated statements of income. (2) The one-month LIBOR rate was approximately 2.261% at September 30, 2018. The interest rate caps are designated as cash flow hedges, and the changes in the fair value of these instruments are recorded in other comprehensive income (loss) in the accompanying condensed consolidated statements of comprehensive income and are disclosed in the supplemental schedule of non-cash financing activities in the accompanying condensed consolidated statements of cash flows. The incremental interest income (the excess of interest received over interest paid) related to interest rate caps and interest rate swaps was approximately $0.1 million for the three months ended September 30, 2018 and the incremental interest expense (the excess of interest paid over interest received) related to interest rate caps and interest rate swaps was approximately $0.1 million for the nine months ended September 30, 2018, and is included in interest expense, other, net in the accompanying condensed consolidated statements of income, and the interest paid amount is disclosed in the supplemental disclosures of cash flow information in the accompanying condensed consolidated statements of cash flows. The incremental interest expense (the excess of interest paid over interest received) related to interest rate caps and interest rate swaps was approximately $0.7 million and $2.6 million for the three and nine months ended September 30, 2017, respectively, and is included in interest expense, other, net in the accompanying condensed consolidated statements of income, and the interest paid amount is disclosed in the supplemental disclosures of cash flow information in the accompanying condensed consolidated statements of cash flows. The estimated net benefit expected to be reclassified out of accumulated other comprehensive income (loss) into results of operations during the next 12 months is approximately $2.7 million.
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Per Share Data and Stockholders' Equity |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per Share Data and Stockholders' Equity | Per Share Data and Stockholders’ Equity The calculation of diluted earnings per share considers the potential dilutive effect of stock options and shares under Sonic’s stock compensation plans and Class A Common Stock purchase warrants. Certain of Sonic’s non-vested restricted stock awards contain rights to receive non-forfeitable dividends and, thus, are considered participating securities and are included in the two-class method of computing earnings per share. The following tables illustrate the dilutive effect of such items on earnings per share for the three and nine months ended September 30, 2018 and 2017:
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Commitments and Contingencies |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Lease Exit Accruals A significant number of our dealership properties are leased under long-term operating lease arrangements. When leased properties are no longer utilized in operations, we record lease exit accruals. These situations could include the relocation of an existing facility or the sale of a dealership when the buyer will not be subleasing the property for either the remaining term of the lease or for an amount equal to our obligation under the lease, or situations in which a store is closed as a result of the associated franchise being terminated by us or the manufacturer and no other operations continue on the leased property. The lease exit accruals represent the present value of the lease payments, net of estimated sublease rentals, for the remaining life of the operating leases and other accruals necessary to satisfy lease commitments to the landlords. As of September 30, 2018, we had approximately $6.3 million accrued for lease exit costs. In addition, based on the terms and conditions negotiated in the sale of dealerships in the future, additional accruals may be necessary if the purchaser of the dealership does not assume any of the associated lease, or we are unable to negotiate a sublease with the buyer of the dealership on terms that are identical to or better than those associated with the original lease. A summary of the activity of these operating lease exit accruals consists of the following:
(1) Expense of approximately $2.3 million is recorded in selling, general and administrative expenses and expense of approximately $0.1 million is recorded in interest expense, other, net in the accompanying condensed consolidated statements of income. In addition, expense of approximately $0.3 million is recorded in income (loss) from discontinued operations before taxes in the accompanying condensed consolidated statements of income. (2) Amount is recorded as an offset to rent expense, with approximately $0.8 million and $1.5 million recorded in selling, general and administrative expenses and income (loss) from discontinued operations before taxes, respectively, in the accompanying condensed consolidated statements of income. (3) Amount represents cash paid to settle deferred maintenance costs related to terminating and exiting leased properties. Legal and Other Proceedings Sonic is involved, and expects to continue to be involved, in various legal and administrative proceedings arising out of the conduct of its business, including regulatory investigations and private civil actions brought by plaintiffs purporting to represent a potential class or for which a class has been certified. Although Sonic vigorously defends itself in all legal and administrative proceedings, the outcomes of pending and future proceedings arising out of the conduct of Sonic’s business, including litigation with customers, employment-related lawsuits, contractual disputes, class actions, purported class actions and actions brought by governmental authorities, cannot be predicted with certainty. An unfavorable resolution of one or more of these matters could have a material adverse effect on Sonic’s business, financial condition, results of operations, cash flows or prospects. Included in other accrued liabilities and other long-term liabilities at September 30, 2018 was approximately $2.1 million and $0.2 million, respectively, in reserves that Sonic was holding for pending proceedings. Included in other accrued liabilities and other long-term liabilities at December 31, 2017 was approximately $3.0 million and $0.2 million, respectively, for such reserves. Except as reflected in such reserves, Sonic is currently unable to estimate a range of reasonably possible loss, or a range of reasonably possible loss in excess of the amount accrued, for pending proceedings. Guarantees and Indemnification Obligations In accordance with the terms of Sonic’s operating lease agreements, Sonic’s dealership subsidiaries, acting as lessees, generally agree to indemnify the lessor from certain exposure arising as a result of the use of the leased premises, including environmental exposure and repairs to leased property upon termination of the lease. In addition, Sonic has generally agreed to indemnify the lessor in the event of a breach of the lease by the lessee. In connection with dealership dispositions and facility relocations, certain of Sonic’s subsidiaries have assigned or sublet to the buyer their interests in real property leases associated with such dealerships. In general, the subsidiaries retain responsibility for the performance of certain obligations under such leases, including rent payments and repairs to leased property upon termination of the lease, to the extent that the assignee or sublessee does not perform. In the event an assignee or a sublessee does not perform its obligations, Sonic remains liable for the lease payments. See Note 12, “Commitments and Contingencies,” to the consolidated financial statements in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2017 for further discussion. In accordance with the terms of agreements entered into for the sale of Sonic’s dealerships, Sonic generally agrees to indemnify the buyer from certain liabilities and costs arising subsequent to the date of sale, including environmental exposure and exposure resulting from the breach of representations or warranties made in accordance with the agreements. While Sonic’s exposure with respect to environmental remediation and repairs is difficult to quantify, Sonic’s maximum exposure associated with these general indemnifications was approximately $14.0 million and $5.0 million at September 30, 2018 and December 31, 2017, respectively. These indemnifications typically expire within a period of one to three years following the date of sale. The estimated fair value of these indemnifications was not material and the amount recorded for this contingency was not significant at September 30, 2018. Sonic also guarantees the floor plan commitments of its 50%-owned joint venture, the amount of which was approximately $2.8 million at both September 30, 2018 and December 31, 2017. Earnout Consideration In association with the acquisition of a business in the three months ended September 30, 2017, Sonic entered into an earnout agreement whereby the seller may be entitled to certain variable earnout payments, subject to certain restrictions, based on the acquired business achieving specified earnings targets over a 10-year period, not to exceed a maximum aggregate earnout payment of $80.0 million. Sonic will recognize the accrual of any such variable earnout payments as compensation expense as earned. Sonic had recorded approximately $23.3 million in earnout accruals as of September 30, 2018, with approximately $7.7 million and $15.6 million recorded in other accrued liabilities and other long-term liabilities, respectively, in the accompanying condensed consolidated balance sheets.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements In determining fair value, Sonic uses various valuation approaches, including market, income and/or cost approaches. “Fair Value Measurements and Disclosures” in the ASC establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of Sonic. Unobservable inputs are inputs that reflect Sonic’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of inputs as follows: Level 1 – Valuations based on quoted prices in active markets for identical assets or liabilities that Sonic has the ability to access. Assets utilizing Level 1 inputs include marketable securities that are actively traded, including Sonic’s stock or public bonds. Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Assets and liabilities utilizing Level 2 inputs include cash flow swap instruments and deferred compensation plan balances. Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Asset and liability measurements utilizing Level 3 inputs include those used in estimating fair value of non-financial assets and non-financial liabilities in purchase acquisitions, those used in assessing impairment of property, plant and equipment and other intangibles and those used in the reporting unit valuation in the annual goodwill impairment evaluation. The availability of observable inputs can vary and is affected by a wide variety of factors. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment required by Sonic in determining fair value is greatest for assets and liabilities categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed is determined based on the lowest level input (Level 3 being the lowest level) that is significant to the fair value measurement. Fair value is a market-based measure considered from the perspective of a market participant who holds the asset or owes the liability rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, Sonic’s own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. Sonic uses inputs that are current as of the measurement date, including during periods when the market may be abnormally high or abnormally low. Accordingly, fair value measurements can be volatile based on various factors that may or may not be within Sonic’s control. Assets and liabilities recorded at fair value in the accompanying condensed consolidated balance sheets as of September 30, 2018 and December 31, 2017 are as follows:
(1) Included in other assets in the accompanying condensed consolidated balance sheets. (2) As of September 30, 2018, approximately $2.0 million and $6.6 million were included in other current assets and other assets, respectively, in the accompanying condensed consolidated balance sheets. As of December 31, 2017, approximately $0.9 million and $5.1 million were included in other current assets and other assets, respectively, in the accompanying condensed consolidated balance sheets. (3) As of December 31, 2017, approximately $1.0 million and $0.3 million were included in other accrued liabilities and other long-term liabilities, respectively, in the accompanying condensed consolidated balance sheets. (4) Included in other long-term liabilities in the accompanying condensed consolidated balance sheets. There were no instances during the nine months ended September 30, 2018 which required a fair value measurement of assets ordinarily measured at fair value on a non-recurring basis. Therefore, the carrying value of assets measured at fair value on a non-recurring basis in the accompanying condensed consolidated balance sheet as of September 30, 2018 has not changed since December 31, 2017. These assets will be evaluated as of the annual valuation assessment date of October 1, 2018 or as events or changes in circumstances require. As of September 30, 2018 and December 31, 2017, the fair values of Sonic’s financial instruments, including receivables, notes receivable from finance contracts, notes payable – floor plan, trade accounts payable, borrowings under the revolving credit facilities and certain mortgage notes, approximated their carrying values due either to length of maturity or existence of variable interest rates that approximate prevailing market rates. At September 30, 2018 and December 31, 2017, the fair value and carrying value of Sonic’s significant fixed rate long-term debt were as follows:
(1) As determined by market quotations as of September 30, 2018 and December 31, 2017, respectively (Level 1). (2) As determined by discounted cash flows (Level 3) based on estimated current market interest rates for comparable instruments.
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Accumulated Other Comprehensive Income (Loss) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2018 are as follows:
(1) Net of tax expense of $1,551. (2) Net of tax expense of $12. See the heading “Derivative Instruments and Hedging Activities” in Note 6, “Long-Term Debt,” for further discussion of Sonic’s cash flow hedges. For further discussion of Sonic’s defined benefit pension plan, see Note 10, “Employee Benefit Plans,” to the consolidated financial statements in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2017.
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment InformationAs of September 30, 2018, Sonic had two operating segments comprised of: (1) retail automotive franchises that sell new vehicles and buy and sell used vehicles, sell replacement parts, perform vehicle repair and maintenance services, and arrange finance and insurance products (the “Franchised Dealerships Segment”) and (2) stand-alone pre-owned vehicle specialty retail locations that buy and sell used vehicles, perform vehicle repair and maintenance services, and arrange finance and insurance products under the EchoPark brand (the “EchoPark Segment”). The operating segments identified above are the business activities of Sonic for which discrete financial information is available and for which operating results are regularly reviewed by Sonic’s chief operating decision maker to assess operating performance and allocate resources. Sonic’s chief operating decision maker is a group of three individuals consisting of: (1) the Company’s Chief Executive Officer; (2) the Company’s Chief Financial Officer; and (3) the Company’s President. Sonic has determined that its operating segments also represent its reportable segments. Reportable segment revenues and segment income (loss) for the three and nine months ended September 30, 2018 and 2017 are as follows:
(1) Segment income (loss) for each segment is defined as operating income (loss) less interest expense, floor plan. (2) For the three months ended September 30, 2018, the above amount includes approximately $0.3 million of net loss on the disposal of franchised dealerships, approximately $1.6 million of executive transition costs and approximately $1.2 million of storm-related physical damage and legal costs. For the three months ended September 30, 2017, the above amount includes approximately $8.5 million of net gain on the disposal of franchised dealerships, offset partially by approximately $3.5 million of storm-related physical damage and legal costs and approximately $0.2 million of impairment expense. For the nine months ended September 30, 2018, the above amount includes approximately $38.9 million of net gain on the disposal of franchised dealerships, offset partially by approximately $5.8 million of storm-related physical damage and legal costs, approximately $2.2 million of lease exit charges, approximately $1.6 million of executive transition costs and approximately $14.0 million of impairment expense. For the nine months ended September 30, 2017, the above amount includes approximately $8.5 million of net gain on the disposal of franchised dealerships, offset partially by approximately $10.3 million of storm-related physical damage and legal costs, approximately $0.3 million of lease exit charges, approximately $14.6 million of net loss on the extinguishment of debt, approximately $0.7 million of double-carry interest and approximately $3.3 million of impairment expense. (3) For the three months ended September 30, 2017, the above amount includes approximately $0.5 million of long-term compensation-related charges. For the nine months ended September 30, 2018, the above amount includes approximately $32.5 million of long-term compensation-related charges. For the nine months ended September 30, 2017, the above amount includes approximately $0.6 million of lease exit charges and approximately $0.5 million of long-term compensation-related charges.
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Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation – The accompanying condensed consolidated financial statements of Sonic Automotive, Inc. and its wholly owned subsidiaries (“Sonic,” the “Company,” “we,” “us” and “our”) for the three and nine months ended September 30, 2018 and 2017 are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and applicable rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The accompanying condensed consolidated financial statements reflect, in the opinion of management, all material normal recurring adjustments necessary to fairly state the financial position, results of operations and cash flows for the periods presented. The operating results for interim periods are not necessarily indicative of the results to be expected for the entire fiscal year or future interim periods, because the first quarter historically has contributed less operating profit than the second, third and fourth quarters. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2017. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements – In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2014-09 as well as several subsequent amendments to amend the accounting guidance on revenue recognition. The amendments to the revenue recognition accounting guidance are included in Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers,” and are intended to provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices and improve disclosure requirements. The amendments to this guidance must be applied using either of the following transition methods: (1) a full retrospective approach reflecting the application of the amendments in each prior reporting period with the option to elect certain practical expedients; or (2) a modified retrospective approach with the cumulative effect of initially applying the amendments recognized at the date of adoption (which requires additional footnote disclosures). These amendments were effective for reporting periods beginning after December 15, 2017. On January 1, 2018, Sonic adopted ASC 606 (the “new revenue standard”) using the modified retrospective transition approach applied to contracts not completed as of the date of adoption. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. The comparative financial information has not been restated and continues to be reported under the accounting standards in effect for that period. We do not expect the adoption of the new revenue standard to have a material impact on our net income on an ongoing basis. Under the new revenue standard, revenue is recognized when a customer obtains control of promised goods or services and in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. The principles apply a five-step model that includes: (1) identifying the contract(s) with the customer; (2) identifying the performance obligation(s) in the contract(s); (3) determining the transaction price; (4) allocating the transaction price to the performance obligation(s) in the contract(s); and (5) recognizing revenue as the performance obligation(s) are satisfied. The new revenue standard also requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Sonic does not include the cost of obtaining contracts within the related revenue streams. Sonic has elected the practical expedient to expense the costs to obtain a contract when incurred. During the implementation process, management evaluated its established business processes, revenue transaction streams and accounting policies, and generally expects similar performance obligations to result under the new revenue standard as compared with prior U.S. GAAP. Management identified its material revenue streams to be (1) the sale of new vehicles; (2) the sale of used vehicles to retail customers; (3) the sale of wholesale used vehicles at third-party auctions; (4) the arrangement of vehicle financing and the sale of service and other insurance contracts; and (5) the performance of vehicle maintenance and repair services and the sale of related parts and accessories. As a result of this evaluation during the implementation process, management expects the amounts and timing of revenue recognition to generally remain the same, with the exception of the timing of revenue recognition related to: (1) service and collision repair orders that are incomplete as of a reporting date (“work in process”) and (2) certain retrospective finance and insurance revenue earned in periods subsequent to the completion of the initial performance obligation (“F&I retro revenues”), both of which are subject to accelerated recognition under the new revenue standard. Work in process revenues are recognized over time based on the completed work to date and F&I retro revenues are recognized when the product contract has been executed with the end customer and are estimated each reporting period based on the expected value method using historical and projected data. F&I retro revenues, which represent variable consideration, subject to a constraint, are to be included in the transaction price and recognized when or as the performance obligation is satisfied. F&I retro revenues can vary based on a variety of factors, including number of contracts and history of cancellations and claims. Accordingly, Sonic utilizes this historical and projected data to constrain the consideration to the extent that it is probable that a significant reversal in the amount of cumulative revenue will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Generally, performance conditions are satisfied when the associated vehicle is either delivered or returned to a customer and customer acceptance has occurred or over time as the maintenance and repair services are performed. Sonic does not have any revenue streams with significant financing components as payments are typically received within a short period of time following completion of the performance obligation(s). The cumulative effect of the adjustments to our September 30, 2018 condensed consolidated statements of income and January 1, 2018 condensed consolidated balance sheet for the adoption of ASC 606 were as follows:
(1) Contract assets are included in receivables, net in the accompanying condensed consolidated balance sheets. Receivables, net at September 30, 2018 includes approximately $4.7 million related to work in process and a contract asset of approximately $8.0 million related to F&I retro revenues. Changes in contract assets from January 1, 2018 to September 30, 2018 were primarily due to ordinary business activity. In February 2016, the FASB issued ASU 2016-02 to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in this ASU require that leases are classified as either finance or operating leases, a right-of-use asset and lease liability is recognized in the statement of financial position and repayments are classified within operating activities in the statement of cash flows. The amendments in this ASU are to be applied using a modified retrospective approach and are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 (early adoption is permitted). We plan to adopt this ASU effective January 1, 2019. While management is still in the process of quantifying the impact of adopting the provisions of this ASU, management expects that upon adoption of this ASU, the presentation of certain items in our consolidated financial position, cash flows and other disclosures will be materially impacted, primarily due to the recognition of a right-of-use asset and an associated liability in our consolidated balance sheets and a change in the timing and classification of certain items in our consolidated statements of income and consolidated statements of cash flows as a result of the derecognition of the lease liability. We are currently implementing the changes required under this ASU by identifying and assessing our existing lease contracts and importing lease data into specialized lease accounting software to meet the future reporting requirements of this ASU. As part of our implementation plan, we are also evaluating the changes in internal controls and processes that are necessary to implement this ASU, but do not expect material changes. We expect to provide a quantitative disclosure of the impact of the adoption of this ASU in our Form 10-K for the year ending December 31, 2018. In August 2017, the FASB issued ASU 2017-12 which amends the hedge accounting recognition and presentation requirements in ASC Topic 815, Derivatives and Hedging. This ASU expands and refines hedge accounting for both non-financial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. It also includes certain targeted improvements to simplify the application of current guidance related to hedge accounting. For public companies, this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 (early adoption is permitted). We do not believe the effects of this ASU will materially impact our consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, which allows the reclassification of stranded tax effects, as a result of the Tax Cuts and Jobs Acts of 2017, from accumulated other comprehensive income to retained earnings. For public companies, this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 (early adoption is permitted). We are currently in the process of evaluating the effects of this ASU on our consolidated financial statements. In June 2018, the FASB issued ASU 2018-07 to expand the scope of ASC Topic 718, Compensation - Stock Compensation, to include share-based payment transactions for acquiring goods and services from non-employees. For public companies, this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 (early adoption is permitted). We are currently in the process of evaluating the effects of this ASU on our consolidated financial statements.
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Principles of Consolidation | Principles of Consolidation – All of our subsidiaries are wholly owned and consolidated in the accompanying condensed consolidated financial statements, except for one 50%-owned dealership that is accounted for under the equity method. All material intercompany balances and transactions have been eliminated in the accompanying condensed consolidated financial statements. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Expense | Income Tax Expense – Beginning January 1, 2018, the federal corporate income tax rate changed from 35.0% to 21.0% along with other tax provision changes that affect the deductibility of certain expenses. Sonic considered these items in its calculation of income tax amounts as of September 30, 2018 and for the three and nine months ended September 30, 2018. The overall effective tax rate from continuing operations was 32.4% and 31.1% for the three and nine months ended September 30, 2018, respectively, and 41.7% and 41.0% for the three and nine months ended September 30, 2017, respectively. Income tax expense for the three months ended September 30, 2018 includes a $0.8 million discrete charge for non-deductible executive officer compensation related to executive transition costs. Income tax expense for the nine months ended September 30, 2018 includes a $0.8 million discrete charge for non-deductible executive officer compensation related to executive transition costs, a $0.2 million discrete charge related to changes in uncertain tax positions and a $0.6 million discrete charge for non-deductible book goodwill related to dealership dispositions, offset partially by a $0.9 million discrete benefit related to vested or exercised stock compensation. Income tax expense for the three months ended September 30, 2017 includes a $0.4 million discrete charge related to a non-deductible asset impairment charge. Income tax expense for the nine months ended September 30, 2017 includes a $0.4 million discrete charge related to a non-deductible asset impairment charge and a benefit of approximately $0.5 million as a result of the adoption of ASU 2016-09 which requires all book-tax differences related to the exercise of stock options or vesting of restricted stock or restricted stock units to flow through the provision for income taxes. Sonic’s effective tax rate varies from year to year based on the distribution of taxable income between states in which the Company operates and other tax adjustments. Sonic expects the annual effective tax rate in future periods to fall within a range of 26.0% to 28.0% before the impact, if any, of changes in valuation allowances related to deferred income tax assets or discrete tax adjustments. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Effect of Adjustments for Adoption of ASC 606 | The cumulative effect of the adjustments to our September 30, 2018 condensed consolidated statements of income and January 1, 2018 condensed consolidated balance sheet for the adoption of ASC 606 were as follows:
(1) Contract assets are included in receivables, net in the accompanying condensed consolidated balance sheets.
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Business Acquisitions and Dispositions (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues and Other Activities Associated with Disposed Dealerships Classified as Discontinued Operations | Revenues and other activities associated with disposed franchised dealerships classified as discontinued operations were as follows:
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Revenues and Other Activities Associated with Disposed Dealerships That Remain in Continuing Operations | Revenues and other activities associated with disposed franchised dealerships that remain in continuing operations were as follows:
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Inventories | Inventories consist of the following:
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Property and Equipment (Tables) |
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Components of Property and Equipment, Net | Property and equipment, net consists of the following:
(1) Classified in other current assets in the accompanying condensed consolidated balance sheets.
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Long-Term Debt (Tables) |
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Long-Term Debt | Long-term debt consists of the following:
(1) The interest rate on the 2016 Revolving Credit Facility (as defined below) was 250 and 225 basis points above the London Interbank Offer Rate (“LIBOR”) at September 30, 2018 and December 31, 2017, respectively.
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Financial Covenants Include Required Specified Ratios | Sonic was in compliance with the covenants under the 2016 Credit Facilities as of September 30, 2018. Financial covenants include required specified ratios (as each is defined in the 2016 Credit Facilities) of:
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Summary of Interest Received and Paid under Term of Cash Flow Swap | Under the terms of the interest rate cap agreements, Sonic will receive and pay interest based on the following:
(1) Under these interest rate cap agreements, no payment to or from the counterparty will occur unless the stated receive rate exceeds the stated pay rate, in which case a net payment to Sonic from the counterparty based on the spread between the receive rate and the pay rate will be recognized as a reduction of interest expense, other, net in the accompanying condensed consolidated statements of income. (2) The one-month LIBOR rate was approximately 2.261% at September 30, 2018.
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Per Share Data and Stockholders' Equity (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dilutive Effect on Earnings Per Share | The following tables illustrate the dilutive effect of such items on earnings per share for the three and nine months ended September 30, 2018 and 2017:
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Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Summary of Lease Exit Accruals | A summary of the activity of these operating lease exit accruals consists of the following:
(1) Expense of approximately $2.3 million is recorded in selling, general and administrative expenses and expense of approximately $0.1 million is recorded in interest expense, other, net in the accompanying condensed consolidated statements of income. In addition, expense of approximately $0.3 million is recorded in income (loss) from discontinued operations before taxes in the accompanying condensed consolidated statements of income. (2) Amount is recorded as an offset to rent expense, with approximately $0.8 million and $1.5 million recorded in selling, general and administrative expenses and income (loss) from discontinued operations before taxes, respectively, in the accompanying condensed consolidated statements of income. (3) Amount represents cash paid to settle deferred maintenance costs related to terminating and exiting leased properties.
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Recorded at Fair Value | Assets and liabilities recorded at fair value in the accompanying condensed consolidated balance sheets as of September 30, 2018 and December 31, 2017 are as follows:
(1) Included in other assets in the accompanying condensed consolidated balance sheets. (2) As of September 30, 2018, approximately $2.0 million and $6.6 million were included in other current assets and other assets, respectively, in the accompanying condensed consolidated balance sheets. As of December 31, 2017, approximately $0.9 million and $5.1 million were included in other current assets and other assets, respectively, in the accompanying condensed consolidated balance sheets. (3) As of December 31, 2017, approximately $1.0 million and $0.3 million were included in other accrued liabilities and other long-term liabilities, respectively, in the accompanying condensed consolidated balance sheets. (4) Included in other long-term liabilities in the accompanying condensed consolidated balance sheets.
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Fair Value and Carrying Value of Significant Fixed Rate Long-Term Debt | At September 30, 2018 and December 31, 2017, the fair value and carrying value of Sonic’s significant fixed rate long-term debt were as follows:
(1) As determined by market quotations as of September 30, 2018 and December 31, 2017, respectively (Level 1). (2) As determined by discounted cash flows (Level 3) based on estimated current market interest rates for comparable instruments.
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Accumulated Other Comprehensive Income (Loss) (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2018 are as follows:
(1) Net of tax expense of $1,551. (2) Net of tax expense of $12.
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Segment Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Reportable Operating Segment | Reportable segment revenues and segment income (loss) for the three and nine months ended September 30, 2018 and 2017 are as follows:
(1) Segment income (loss) for each segment is defined as operating income (loss) less interest expense, floor plan. (2) For the three months ended September 30, 2018, the above amount includes approximately $0.3 million of net loss on the disposal of franchised dealerships, approximately $1.6 million of executive transition costs and approximately $1.2 million of storm-related physical damage and legal costs. For the three months ended September 30, 2017, the above amount includes approximately $8.5 million of net gain on the disposal of franchised dealerships, offset partially by approximately $3.5 million of storm-related physical damage and legal costs and approximately $0.2 million of impairment expense. For the nine months ended September 30, 2018, the above amount includes approximately $38.9 million of net gain on the disposal of franchised dealerships, offset partially by approximately $5.8 million of storm-related physical damage and legal costs, approximately $2.2 million of lease exit charges, approximately $1.6 million of executive transition costs and approximately $14.0 million of impairment expense. For the nine months ended September 30, 2017, the above amount includes approximately $8.5 million of net gain on the disposal of franchised dealerships, offset partially by approximately $10.3 million of storm-related physical damage and legal costs, approximately $0.3 million of lease exit charges, approximately $14.6 million of net loss on the extinguishment of debt, approximately $0.7 million of double-carry interest and approximately $3.3 million of impairment expense. (3) For the three months ended September 30, 2017, the above amount includes approximately $0.5 million of long-term compensation-related charges. For the nine months ended September 30, 2018, the above amount includes approximately $32.5 million of long-term compensation-related charges. For the nine months ended September 30, 2017, the above amount includes approximately $0.6 million of lease exit charges and approximately $0.5 million of long-term compensation-related charges.
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Business Acquisitions and Dispositions - Additional Information (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018
Business
|
Sep. 30, 2017
USD ($)
Business
|
Sep. 30, 2018
USD ($)
Business
|
Sep. 30, 2017
USD ($)
Franchise
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Business Combinations [Abstract] | ||||
Number of acquired franchises | Business | 0 | 0 | ||
Business Acquisition [Line Items] | ||||
Number of franchises disposed | Business | 6 | |||
Net cash generated from disposition | $ | $ 121,900 | |||
Proceeds from sales of dealerships | $ | $ 121,859 | $ 22,578 | ||
Luxury franchise | ||||
Business Acquisition [Line Items] | ||||
Number of franchises terminated | Business | 1 | |||
EchoPark | ||||
Business Acquisition [Line Items] | ||||
Number of franchises ceased operations | Business | 3 | |||
Mid-line import franchise | ||||
Business Acquisition [Line Items] | ||||
Number of franchises disposed | Franchise | 1 | |||
Net cash generated from disposition | $ | $ 22,600 | |||
Stand-alone pre-owned vehicle business | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, consideration amount | $ | $ 76,600 |
Business Acquisitions and Dispositions - Revenues and Other Activities Associated with Disposed Dealerships Classified as Discontinued Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Pre-tax income (loss) | $ (252) | $ (481) | $ (797) | $ (1,650) |
Disposed dealerships classified as discontinued operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (loss) from operations | (148) | (119) | (478) | (561) |
Lease exit accrual adjustments and charges | (104) | (362) | (319) | (1,089) |
Pre-tax income (loss) | (252) | (481) | (797) | (1,650) |
Total revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Business Acquisitions and Dispositions - Revenues and Other Activities Associated with Disposed Dealerships That Remain in Continuing Operations (Details) - Disposed dealerships that remain in continuing operations - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (loss) from operations | $ (910) | $ (1,779) | $ (6,039) | $ (4,067) |
Gain (loss) on disposal | (88) | 8,490 | 39,149 | 8,466 |
Lease exit accrual adjustments and charges | (15) | 0 | (33) | 0 |
Pre-tax income (loss) | (1,013) | 6,711 | 33,077 | 4,399 |
Total revenues | $ 0 | $ 127,313 | $ 108,754 | $ 393,662 |
Inventories - Components of Inventories (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Inventory Disclosure [Abstract] | ||
New vehicles | $ 992,935 | $ 1,017,523 |
Used vehicles | 280,143 | 294,496 |
Service loaners | 137,337 | 130,406 |
Parts, accessories and other | 64,417 | 70,320 |
Net inventories | $ 1,474,832 | $ 1,512,745 |
Property and Equipment - Additional Information (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
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Property, Plant and Equipment [Abstract] | ||||
Capital expenditures | $ 34,300,000 | $ 60,700,000 | $ 133,900,000 | $ 181,900,000 |
Impairment charges | $ 0 | $ 200,000 | $ 13,961,000 | $ 3,315,000 |
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 510,160 | $ 525,780 |
Net of accumulated impairment losses | 797,600 | 797,600 |
Lease agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite life intangibles | 4,200 | 4,700 |
Franchise assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Franchise assets | $ 67,800 | $ 69,900 |
Long-Term Debt - 2016 Credit Facilities (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
2016 Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
2016 Revolving Credit Facility | $ 13,526,000 | $ 75,000,000 |
Revolving Credit Facility | 2016 Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Current borrowing capacity | 250,000,000.0 | |
Maximum borrowing capacity | 300,000,000.0 | |
Borrowing base | 222,500,000 | |
Letters of credit outstanding amount | 16,200,000 | |
Borrowing availability amount | 192,800,000 | |
Revolving Credit Facility | 2016 Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
2016 Revolving Credit Facility | 13,500,000 | |
Revolving Credit Facility | 2016 New Vehicle Floor Plan Facility and 2016 Used Vehicle Floor Plan Facility | ||
Line of Credit Facility [Line Items] | ||
Current borrowing capacity | 1,015,000,000.000 | |
Maximum borrowing capacity | $ 1,265,000,000 | |
Maximum aggregate commitments allocated to commitments under the 2016 Used Vehicle Floor Plan Facility | 30.00% |
Long-Term Debt - Covenants (Details) $ in Millions |
Sep. 30, 2018
USD ($)
|
---|---|
Line of Credit Facility [Line Items] | |
Minimum Consolidated Liquidity Ratio | 113.00% |
Minimum Consolidated Fixed Charge Coverage Ratio | 145.00% |
Maximum Consolidated Total Lease Adjusted Leverage Ratio | 511.00% |
2016 Credit Facilities | |
Line of Credit Facility [Line Items] | |
Net income and retained earnings free of restrictions | $ 151.8 |
Minimum EBTDAR to rent ratio | 355.00% |
Required ratio | |
Line of Credit Facility [Line Items] | |
Minimum Consolidated Liquidity Ratio | 105.00% |
Minimum Consolidated Fixed Charge Coverage Ratio | 120.00% |
Maximum Consolidated Total Lease Adjusted Leverage Ratio | 575.00% |
Required ratio | 2016 Credit Facilities | |
Line of Credit Facility [Line Items] | |
Minimum EBTDAR to rent ratio | 150.00% |
Long-Term Debt - Summary of Interest Received and Paid under Term of Cash Flow Swap (Details) |
Sep. 30, 2018
USD ($)
|
---|---|
Derivatives, Fair Value [Line Items] | |
One month LIBOR rate | 2.261% |
Cash Flow Swap A | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | $ 250,000,000.0 |
Pay Rate | 2.00% |
Cash Flow Swap B | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | $ 375,000,000.0 |
Pay Rate | 2.00% |
Cash Flow Swap C | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | $ 375,000,000.0 |
Pay Rate | 3.00% |
Cash Flow Swap D | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | $ 312,500,000 |
Pay Rate | 2.00% |
Cash Flow Swap E | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | $ 250,000,000.0 |
Pay Rate | 3.00% |
Cash Flow Swap F | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | $ 225,000,000.0 |
Pay Rate | 3.00% |
Cash Flow Swap G | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | $ 150,000,000.0 |
Pay Rate | 2.00% |
Cash Flow Swap H | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | $ 250,000,000.0 |
Pay Rate | 3.00% |
Commitments and Contingencies - Summary of Lease Exit Accruals (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2018
USD ($)
| |
Lease Exit [Roll Forward] | |
Balance at December 31, 2017 | $ 6,478 |
Lease exit expense | 2,697 |
Payments | (2,336) |
Lease buyout/other | (580) |
Balance at September 30, 2018 | 6,259 |
Component of lease exit expense in selling, general and administrative expenses | 2,300 |
Component of lease exit expense in interest expense | 100 |
Component of lease exit expense in income (loss) from operations and the sale of dealerships before tax | 300 |
Component of lease exit payments in selling, general and administrative expenses | 800 |
Component of lease exit payments in income (loss) from operations and the sale of dealerships before tax | $ 1,500 |
Fair Value Measurements - Assets and Liabilities Recorded at Fair Value (Details) - Fair Value Based on Significant Other Observable Inputs (Level 2) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Assets: | ||
Cash surrender value of life insurance policies | $ 34,699 | $ 33,747 |
Cash flow swaps and interest rate caps designated as hedges | 8,604 | 5,968 |
Total assets | 43,303 | 39,715 |
Liabilities: | ||
Cash flow swaps and interest rate caps designated as hedges | 0 | 1,286 |
Deferred compensation plan | 20,412 | 18,417 |
Total liabilities | 20,412 | 19,703 |
Other current assets | ||
Assets: | ||
Cash flow swaps and interest rate caps designated as hedges | 2,000 | 900 |
Other assets | ||
Assets: | ||
Cash flow swaps and interest rate caps designated as hedges | $ 6,600 | 5,100 |
Other accrued liabilities | ||
Liabilities: | ||
Cash flow swaps and interest rate caps designated as hedges | 1,000 | |
Other long-term liabilities | ||
Liabilities: | ||
Cash flow swaps and interest rate caps designated as hedges | $ 300 |
Fair Value Measurements - Fair Value and Carrying Value of Significant Fixed Rate Long-Term Debt (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
Mar. 10, 2017 |
May 09, 2013 |
---|---|---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Carrying Value | $ 990,629 | $ 1,024,703 | ||
Mortgage Notes | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair Value | 229,626 | 203,031 | ||
Carrying Value | 226,548 | 199,972 | ||
Other | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair Value | 39,177 | 3,760 | ||
Carrying Value | 39,311 | 3,947 | ||
5.0% Notes | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair Value | 271,917 | 279,148 | ||
Carrying Value | $ 289,273 | 289,273 | ||
Stated interest rate | 5.00% | 5.00% | ||
6.125% Notes | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair Value | $ 233,125 | 248,750 | ||
Carrying Value | $ 250,000 | $ 250,000 | ||
Stated interest rate | 6.125% | 6.125% |
Segment Information - Additional Information (Details) |
9 Months Ended |
---|---|
Sep. 30, 2018
individual
Segment
| |
Segment Reporting [Abstract] | |
Number of operating segments | Segment | 2 |
Chief operating decision maker group | individual | 3 |
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