8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 ____________________________________

FORM 8-K

____________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):April 25, 2019

____________________________________

SONIC AUTOMOTIVE, INC.

(Exact name of registrant as specified in its charter)

____________________________________

Delaware

(State or other jurisdiction

of incorporation)

1-13395	56-2010790
(Commission File Number)	(IRS Employer Identification No.)

4401 Colwick Road Charlotte, North Carolina	28211
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (704) 566-2400

Not Applicable

(Former name or former address, if changed since last report.)

____________________________________ 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02. Results of Operations and Financial Condition.

On April 25, 2019, Sonic Automotive, Inc. (the “Company”) issued a press release announcing its financial results for its fiscal first quarter ended March 31, 2019 (the “Earnings Press Release”). A copy of the Earnings Press Release is attached hereto as Exhibit 99.1 and a copy of the earnings call presentation materials is attached hereto as Exhibit 99.2.

Item 7.01. Regulation FD Disclosure.

On April 25, 2019, in the Earnings Press Release, the Company announced the approval of a quarterly cash dividend.

Item 9.01. Financial Statements and Exhibits.

(d)    Exhibits.

Exhibit   No.	Description
99.1	Press Release of Sonic Automotive, Inc., dated April 25, 2019.
99.2	Earnings Call Presentation Materials.

The information in this Current Report on Form 8-K, including the exhibits attached hereto, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SONIC AUTOMOTIVE, INC.
Date: April 25, 2019	By:	/s/ STEPHEN K. COSS
		Stephen K. Coss
		Senior Vice President and General Counsel

EX-99.1

Exhibit 99.1

Sonic Automotive’sEchoPark Profitable and

On-Track to Exceed $1.0 Billion in 2019 Revenues

CHARLOTTE, N.C. – April 25, 2019 – Sonic Automotive, Inc. (NYSE: SAH), one of the nation’s largest automotive retailers, today reported financial results for the first quarter of 2019.

•EchoPark revenues of $249.6 million during the first quarter of 2019, up 89.8%from the first quarter of 2018; on-track to exceed $1.0 billion in full year 2019 revenues.

•Total Sonic consolidated GAAP continuing operations earnings per diluted share of $0.99 in the first quarter of 2019compared to a continuing operations loss per diluted share of $0.05 in the first quarter of 2018.

•Excluding the items of interest detailed below, adjusted earnings per diluted share from continuing operations* for the first quarter of 2019 were $0.39 compared to $0.26 for the first quarter of 2018.

•EchoPark pre-tax profit improved $14.9 million, or 101.2%, to $0.2 million in the first quarter of 2019 compared to a pre-tax loss of $14.7 million in the first quarter of 2018.

•EchoPark generated positive cash flow (Adjusted EBITDA*) of $5.0 million in the first quarter of 2019, improving by $8.3 million, or 247.8%, from the first quarter of 2018.

•EchoPark retailed 11,051 units during the first quarter of 2019, up 100.3% from the first quarter of 2018.

•Total Sonic consolidated all-time quarterly record pre-owned retail unit sales of 38,463 units in the first quarter of 2019.

•Total Sonic consolidated all-time quarterly record F&I gross profit per retail unit of $1,676 in the first quarter of 2019.

•Total Sonic consolidated record first quarter F&I gross profit of $106.2 million in 2019.

•Received cash of $121.7 million on the disposal of four franchised dealerships during the first quarter of2019, which represent approximately $300.0 million in annual revenues.

* Adjusted earnings per diluted share from continuing operations and Adjusted EBITDA are non-GAAP financial measures. The schedules included in this press release reconcile these non-GAAP financial measures to the most directly comparable GAAP financial measures.

First Quarter 2019 Results

On a GAAP basis, net income from continuing operations for the first quarter of 2019 was $42.3 million, or $0.99 per diluted share. Comparatively, the net loss from continuing operations for the first quarter of 2018 was $2.0 million, or $0.05 per diluted share.

GAAP results reported for the first quarter of 2019 and 2018 include the following pre-tax items of interest:

(In millions)	Q1 2019		Q1 2018		Income Statement Line Item
Gain (Loss) on Franchise Disposals	$	46.7	$	1.2	SG&A
Executive Transition Costs	$	(6.3)	$	—	SG&A	(1)
Long-Term Compensation Charges	$	—	$	(9.2)	SG&A	(2)
Impairment Charges	$	(1.9)	$	(3.6)	Impairment	(3)
Lease Exit Charges	$	—	$	(4.8)	SG&A
Legal Related Matters	$	—	$	(1.5)	SG&A

Note: Amounts in table relate to the Franchised Dealerships Segment unless otherwise noted below.

(1) $6.0 million of Q1 2019 amount is not deductible for tax purposes.

(2) $9.2 million Q1 2018 amount relates to EchoPark.

(3) $1.9 million Q1 2019 amount related to EchoPark.

Commentary

David Smith, Sonic and EchoPark’s Chief Executive Officer, commented, “We are very pleased with the results for the quarter with our franchised dealerships offering a solid performance and EchoPark beginning to show what is possible from what we have developed over the last several years. We believe EchoPark revenues will eclipse the $1.0 billion mark in 2019 as our stores are still maturing. To add perspective to the potential scale of EchoPark, its pre-owned unit sales comprised 28.7% of consolidated Sonic pre-owned unit sales in the first quarter of 2019. This is currently being accomplished through eight locations that serve a multitude of surrounding markets across the United States. As we expand our footprint into other areas across the country, we believe EchoPark will exceed the overall volumes and profitability of our franchised dealerships. We believe the combination of our customer-centric shopping experience, high quality vehicle offerings, rock-bottom pricing and transparent trade-in appraisals is disrupting the pre-owned markets that we serve. At our EchoPark stores, we continue seeing the markets we serve expand as customers have recognized the value we offer and are traveling hundreds of miles to purchase their vehicle from EchoPark.”

“There were several ‘firsts’ for the EchoPark operations during the quarter beyond the unit and revenue growth we have become accustomed to seeing. Two of the more significant ‘firsts’ relate to positive cash flow and profitability. Adjusted EBITDA for EchoPark was $5.0 million during the quarter. At the EchoPark store operating level, the contribution of Adjusted EBITDA during the first quarter was $6.1 million, offset by negative corporate level Adjusted EBITDA of $1.1 million. For the other significant ‘first,’ the pre-tax results for EchoPark were $0.2 million for the first quarter of 2019. This is the first quarter of profitability for the entire business unit. Operationally, it performed even better than the $0.2 million, as this amount includes an impairment charge of $1.9 million. Absent the impairment charge, EchoPark posted a pre-tax profit of $2.1 million. We look forward to sharing more of these ‘firsts’ with everyone in the future.”

Jeff Dyke, Sonic and EchoPark’s President, commented, “Our franchise and EchoPark leadership teams did a fantastic job giving us one of our best starts to a year that I can remember. We managed our SG&A structure, grew our gross profit and delivered above our internal forecasts in every facet of our business.”

“Our EchoPark operating model has evolved over time as we continue to listen to what customers want when shopping and buying a pre-owned vehicle. Of course, customers want it to be an easy, transparent process where they get a quality product at a great price. It sounds simple, but the magic is when you can give customers exactly what they want and make money doing it. Our EchoPark stores offer a unique and customer-friendly buying experience from the time customers first type in EchoPark.com on their computer or mobile device, to the moment they sign that last document electronically so they can begin to enjoy their car or truck. We provide an exceptional guest experience and value pricing along the lines of what Costco does for its customer base, while managing inventory days’ supply well below industry norms. Our proprietary inventory management and pricing tools that we have invested in for years are really paying off. We were able to sell over 11,000 vehicles in the quarter, running below a 30-day supply all-in and below a 20-day supply on our front-line inventory. This model allows us to remain very flexible and take advantage of inventory availability and valuation shifts in order to keep our pricing well below our competition. We believe in keeping our operating expenses very low so we can offer our guests the best pricing and guest experience in the industry today.”

“As for our franchised dealerships in the first quarter, revenue was relatively flat compared to the prior year quarter on a same store basis despite a 4.6% decline in our new vehicle revenue driven by lower industry volumes. Gross profit for the first quarter of 2019 on a same store basis improved $8.4 million, or 2.7%, from the prior year quarter. This ultimately resulted in an increase in operating income on a same store basis of $3.0 million, or 5.5%. Year-over-year increases in interest costs on a same store basis increased $4.3 million. We continue to actively manage our inventory levels in cooperation with our manufacturer partners to minimize the effect of higher interest rates on our overall profitability. We had record pre-owned volume, record F&I gross per unit and a very solid fixed operations gross performance in the quarter. Our BMW and Honda business rebounded from the prior quarter and we expect that to continue improving as we move through the year.”

Heath Byrd, Sonic and EchoPark’s Executive Vice President and Chief Financial Officer, noted, “Over the past year, we reduced our total long-term debt by $139.3 million and improved our liquidity by over $164.2 million, to $292.2 million. Based on current store performance, we believe our current EchoPark expansion plans can generate annual incremental revenue of $500.0 million to $1.0 billion. We believe the improved strength of our balance sheet and the positive cash flows from our EchoPark and franchise operations will allow us to fund the expansion of EchoPark internally without the need to access capital from the public markets.”

Dividend

Sonic’s Board of Directors approved a quarterly dividend of $0.10 per share payable in cash for our stockholders of record on June 14, 2019. The dividend will be payable on July 15, 2019.

First Quarter 2019 Earnings Conference Call

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

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

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

Domestic: (877) 450-3867

International: (706) 643-0958

Conference ID: 1387216

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

Domestic: (855) 859-2056

International: (404) 537-3406

Conference ID: 1387216

About Sonic Automotive

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

Forward-Looking Statements

Included herein are forward-looking statements. There are many factors that affect management’s views about future events and trends of the Company’s business. These factors involve risks and uncertainties that could cause actual results or trends to differ materially from management’s views, including, without limitation, EchoPark revenue estimates, EchoPark unit sales volume, EchoPark profit estimates, economic conditions in the markets in which we operate, new and used vehicle industry sales volume, the success of our operational strategies, the rate and timing of overall economic recovery or decline, and the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and the Company’s other periodic reports and information filed with the Securities and Exchange Commission (the “SEC”). The Company does not undertake any obligation to update forward-looking information, except as required under federal securities laws and the rules and regulations of the SEC.

Non-GAAP Financial Measures

This press release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as Adjusted EBITDA for our Franchised Dealerships and EchoPark Segments. As required by SEC rules, the Company provides reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures. The Company believes that these non-GAAP financial measures improve the transparency of the Company’s disclosure and provide a meaningful presentation of the Company’s results.

Contact: Heath Byrd, Executive Vice President and Chief Financial Officer (704) 566-2400
C.G. Saffer, Vice President and Chief Accounting Officer (704) 566-2439

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Results of Operations

	Three Months Ended March 31,
	2019		2018
	(Dollars and shares in thousands, except per share amounts)
Revenues:
New vehicles	$	1,066,334	$	1,180,846
Used vehicles	820,366		709,046
Wholesale vehicles	54,770		65,398
Total vehicles	1,941,470		1,955,290
Parts, service and collision repair	341,430		351,758
Finance, insurance and other, net	106,238		93,725
Total revenues	2,389,138		2,400,773
Cost of Sales:
New vehicles	(1,012,538)		(1,124,046)
Used vehicles	(783,358)		(672,275)
Wholesale vehicles	(56,037)		(69,823)
Total vehicles	(1,851,933)		(1,866,144)
Parts, service and collision repair	(178,194)		(182,130)
Total cost of sales	(2,030,127)		(2,048,274)
Gross profit	359,011		352,499
Selling, general and administrative expenses	(247,095)		(304,925)
Impairment charges	(1,952)		(3,643)
Depreciation and amortization	(22,649)		(23,743)
Operating income (loss)	87,315		20,188
Other income (expense):
Interest expense, floor plan	(13,226)		(10,677)
Interest expense, other, net	(12,853)		(13,456)
Other income (expense), net	100		89
Total other income (expense)	(25,979)		(24,044)
Income (loss) from continuing operations before taxes	61,336		(3,856)
Provision for income taxes for continuing operations - benefit (expense)	(18,987)		1,842
Income (loss) from continuing operations	42,349		(2,014)
Discontinued operations:
Income (loss) from discontinued operations before taxes	(180)		(248)
Provision for income taxes for discontinued operations - benefit (expense)	52		68
Income (loss) from discontinued operations	(128)		(180)
Net income (loss)	$	42,221	$	(2,194)
Basic earnings (loss) per common share:
Earnings (loss) per share from continuing operations	$	0.99	$	(0.05)
Earnings (loss) per share from discontinued operations	(0.01)		—
Earnings (loss) per common share	$	0.98	$	(0.05)
Weighted average common shares outstanding	42,838		42,789
Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations	$	0.99	$	(0.05)
Earnings (loss) per share from discontinued operations	(0.01)		—
Earnings (loss) per common share	$	0.98	$	(0.05)
Weighted average common shares outstanding	42,888		42,789
Dividends declared per common share	$	0.10	$	0.06

Sonic Automotive, Inc.

Results of Operations (Unaudited)

New Vehicles

	Three Months Ended March 31,						Better / (Worse)
	2019			2018			Change		% Change
	(In thousands, except unit and per unit data)
Reported new vehicle:
Revenue	$	1,066,334		$	1,180,846		$	(114,512)	(9.7)	%
Gross profit	$	53,796		$	56,800		$	(3,004)	(5.3)	%
Unit sales	25,197			29,500			(4,303)		(14.6)	%
Revenue per unit	$	42,320		$	40,029		$	2,291	5.7	%
Gross profit per unit	$	2,135		$	1,925		$	210	10.9	%
Gross profit as a % of revenue	5.0		%	4.8		%	20		bps
	Three Months Ended March 31,						Better / (Worse)
	2019			2018			Change		% Change
	(In thousands, except unit and per unit data)
Same store new vehicle:
Revenue	$	1,047,677		$	1,097,720		$	(50,043)	(4.6)	%
Gross profit	$	52,959		$	54,379		$	(1,420)	(2.6)	%
Unit sales	24,695			26,910			(2,215)		(8.2)	%
Revenue per unit	$	42,425		$	40,792		$	1,633	4.0	%
Gross profit per unit	$	2,145		$	2,021		$	124	6.1	%
Gross profit as a % of revenue	5.1		%	5.0		%	10		bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Used Vehicles

	Three Months Ended March 31,						Better / (Worse)
	2019			2018			Change		% Change
	(In thousands, except unit and per unit data)
Reported used vehicle:
Revenue	$	820,366		$	709,046		$	111,320	15.7	%
Gross profit	$	37,008		$	36,771		$	237	0.6	%
Unit sales	38,463			33,739			4,724		14.0	%
Revenue per unit	$	21,329		$	21,016		$	313	1.5	%
Gross profit per unit	$	962		$	1,090		$	(128)	(11.7)	%
Gross profit as a % of revenue	4.5		%	5.2		%	(70)		bps
	Three Months Ended March 31,						Better / (Worse)
	2019			2018			Change		% Change
	(In thousands, except unit and per unit data)
Same store used vehicle:
Revenue	$	764,621		$	666,097		$	98,524	14.8	%
Gross profit	$	33,723		$	32,800		$	923	2.8	%
Unit sales	35,609			31,363			4,246		13.5	%
Revenue per unit	$	21,473		$	21,238		$	235	1.1	%
Gross profit per unit	$	947		$	1,046		$	(99)	(9.5)	%
Gross profit as a % of revenue	4.4		%	4.9		%	(50)		bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Wholesale Vehicles

	Three Months Ended March 31,						Better / (Worse)
	2019			2018			Change		% Change
	(In thousands, except unit and per unit data)
Reported wholesale vehicle:
Revenue	$	54,770		$	65,398		$	(10,628)	(16.3)	%
Gross profit	$	(1,267)		$	(4,425)		$	3,158	71.4	%
Unit sales	8,647			9,680			(1,033)		(10.7)	%
Revenue per unit	$	6,334		$	6,756		$	(422)	(6.2)	%
Gross profit per unit	$	(147)		$	(457)		$	310	67.8	%
Gross profit as a % of revenue	(2.3)		%	(6.8)		%	450		bps
	Three Months Ended March 31,						Better / (Worse)
	2019			2018			Change		% Change
	(In thousands, except unit and per unit data)
Same store wholesale vehicle:
Revenue	$	53,124		$	60,319		$	(7,195)	(11.9)	%
Gross profit	$	(1,142)		$	(3,881)		$	2,739	70.6	%
Unit sales	8,388			8,867			(479)		(5.4)	%
Revenue per unit	$	6,333		$	6,803		$	(470)	(6.9)	%
Gross profit per unit	$	(136)		$	(438)		$	302	68.9	%
Gross profit as a % of revenue	(2.1)		%	(6.4)		%	430		bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Parts, Service and Collision Repair (“Fixed Operations”)

	Three Months Ended March 31,						Better / (Worse)
	2019			2018			Change			% Change
	(In thousands)
Reported:
Revenue
Customer pay	$	137,721		$	142,354		$	(4,633)		(3.3)	%
Warranty	68,973			67,601			1,372			2.0	%
Wholesale parts	39,297			42,501			(3,204)			(7.5)	%
Internal, sublet and other	95,439			99,302			(3,863)			(3.9)	%
Total	$	341,430		$	351,758		$	(10,328)		(2.9)	%
Gross profit
Customer pay	$	74,326		$	76,350		$	(2,024)		(2.7)	%
Warranty	38,407			37,901			506			1.3	%
Wholesale parts	6,796			7,265			(469)			(6.5)	%
Internal, sublet and other	43,707			48,112			(4,405)			(9.2)	%
Total	$	163,236		$	169,628		$	(6,392)		(3.8)	%
Gross profit as a % of revenue
Customer pay	54.0		%	53.6		%	40		bps
Warranty	55.7		%	56.1		%	(40)		bps
Wholesale parts	17.3		%	17.1		%	20		bps
Internal, sublet and other	45.8		%	48.5		%	(270)		bps
Total	47.8		%	48.2		%	(40)		bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Parts, Service and Collision Repair (“Fixed Operations”)

	Three Months Ended March 31,						Better / (Worse)
	2019			2018			Change			% Change
	(In thousands)
Same Store:
Revenue
Customer pay	$	136,093		$	130,728		$	5,365		4.1	%
Warranty	67,437			64,214			3,223			5.0	%
Wholesale parts	38,581			40,012			(1,431)			(3.6)	%
Internal, sublet and other	93,077			92,601			476			0.5	%
Total	$	335,188		$	327,555		$	7,633		2.3	%
Gross profit
Customer pay	$	73,435		$	69,809		$	3,626		5.2	%
Warranty	37,612			35,904			1,708			4.8	%
Wholesale parts	6,636			6,790			(154)			(2.3)	%
Internal, sublet and other	42,325			44,368			(2,043)			(4.6)	%
Total	$	160,008		$	156,871		$	3,137		2.0	%
Gross profit as a % of revenue
Customer pay	54.0		%	53.4		%	60		bps
Warranty	55.8		%	55.9		%	(10)		bps
Wholesale parts	17.2		%	17.0		%	20		bps
Internal, sublet and other	45.5		%	47.9		%	(240)		bps
Total	47.7		%	47.9		%	(20)		bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Finance, Insurance and Other, Net (“F&I”)    

	Three Months Ended March 31,				Better / (Worse)
	2019		2018		Change		% Change
	(In thousands, except per unit data)
Reported:
Revenue	$	106,238	$	93,725	$	12,513	13.4	%
Unit sales	63,381		$	62,916	465		0.7	%
Gross profit per retail unit (excludes fleet)	$	1,676	$	1,490	$	186	12.5	%
	Three Months Ended March 31,				Better / (Worse)
	2019		2018		Change		% Change
	(In thousands, except per unit data)
Same Store:
Revenue	$	97,117	$	85,161	$	11,956	14.0	%
Unit sales	60,025		57,970		2,055		3.5	%
Gross profit per retail unit (excludes fleet)	$	1,618	$	1,469	$	149	10.1	%

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Selling, General and Administrative (“SG&A”) Expenses

	Three Months Ended March 31,						Better / (Worse)
	2019			2018			Change			% Change
	(In thousands)
Reported:
Compensation	$	184,185		$	185,037		$	852		0.5	%
Advertising	15,050			16,016			966			6.0	%
Rent	15,250			21,868			6,618			30.3	%
Other	32,610			82,004			49,394			60.2	%
Total SG&A expenses	$	247,095		$	304,925		$	57,830		19.0	%
Reported:
SG&A expenses as a % of gross profit:
Compensation	51.3		%	52.5		%	120		bps
Advertising	4.2		%	4.5		%	30		bps
Rent	4.2		%	6.2		%	200		bps
Other	9.1		%	23.3		%	1,420		bps
Total SG&A expenses as a % of gross profit	68.8		%	86.5		%	1,770		bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Non-GAAP Continuing Operations EPS Reconciliation

	Three Months Ended March 31, 2019					Three Months Ended March 31, 2018
	Weighted Average Shares	Amount		Per Share Amount		Weighted Average Shares	Amount		Per Share Amount
	(In thousands, except per share amounts)
Diluted earnings (loss) and shares from continuing operations	42,888	$	42,349	$	0.99	42,789	$	(2,014)	$	(0.05)
Pre-tax items of interest:
Loss (gain) on franchise disposals		$	(46,680)				$	(1,190)
Executive transition costs		6,264					—
Long-term compensation charges		—					9,189
Impairment Charges		1,926					3,643
Lease exit charges		—					4,814
Legal related matters		—					1,500
Tax effect of above items		12,902					(4,894)
Adjusted diluted earnings (loss) and shares from continuing operations	42,888	$	16,761	$	0.39	42,789	$	11,048	$	0.26

EX-99.2

Exhibit 99.2 Q1 2019 Investor Presentation

FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events, are not historical facts and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. These statements can generally be identified by lead-in words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “foresee”, “may”, “will” and other similar words. Statements that describe our Company’s objectives, plans or goals are also forward-looking statements. Examples of such forward-looking information we may be discussing in this presentation include, without limitation, earnings expectations, anticipated 2019 industry new vehicle sales volume, the implementation of growth and operating strategies, including acquisitions of dealerships and properties, the development of open points and stand-alone pre-owned stores, the return of capital to stockholders, anticipated future success and impacts from the implementation of our strategic initiatives and earnings per share expectations. You are cautioned that these forward-looking statements are not guarantees of future performance, involve risks and uncertainties and actual results may differ materially from those projected in the forward-looking statements as a result of various factors. These risks and uncertainties include, without limitation, economic conditions in the markets in which we operate, new and used vehicle industry sales volume, the success of our operational strategies, the rate and timing of overall economic recovery or decline, and the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and the Company’s other periodic reports and information filed with the Securities and Exchange Commission. These forward-looking statements, risks, uncertainties and additional factors speak only as of the date of this presentation. We undertake no obligation to update any such statements, except as required under federal securities laws and the rules and regulations of the Securities and Exchange Commission. 2

CONTENT • COMPANY OVERVIEW • FINANCIAL & OPERATIONS REVIEW • APPENDIX 3

COMPANY OVERVIEW 4

OVERVIEW – FRANCHISED GEOGRAPHIC Headquartered in Charlotte, NC 92 Stores, 23 Brands, 15 Collision Repair Centers Platforms in Major Metro Markets 5

OVERVIEW – ECHOPARK GEOGRAPHIC • Thornton & • Charlotte Location Opened in Centennial Opened October 2018 in 2015 • Velocity of Sales Increasing • CO Springs Opened Faster Compared to Other Q2 2017 New Openings Texas – 4 Locations Denver – 3 Locations NC – 1 Location Dallas/Grand Prairie Location – Relocated driversselect Operation (purchased in Q3 2017) Houston Location Opened in • West San Antonio Location Opened in Q4 2017 December 2018 • New Braunfels Location Opened in Q1 2018 6

OVERVIEW - GEOGRAPHIC NV MD 2% 3% SC 2% OH VA 3% 3% NC CA 3% GA 3% 28% CO Concentration 8% in Major Metro Markets AL 5% FL 6% TN TX 7% 27% 7 Note: Percentages are percent of total revenue for FY 2018.

OVERVIEW – BRAND & REVENUE COMPOSITION Other Lux 7% Revenue streams VW Land Rover and brand mix offer 2% 4% BMW attractive diversification across Other Non-Lux 20% 3% the automotive retail space. Cadillac 2% GM 5% F&I Fixed 4% Audi Ops 7% Honda 14% 17% New 50% Ford Pre- 6% Owned 32% Lexus 6% Toyota Mercedes 10% 11% Note: Percentages are for FY 2018. 8

Q1 2019 FINANCIAL REVIEW FRANCHISED SEGMENT 9

FRANCHISED SEGMENT Q1 2019 RESULTS B/(W) than Q1 2018 (In millions) Q1 2019 $ % Revenue $2,140 ($130) (5.7%) Gross Profit $333 ($7) (2.1%) SG&A $227 $54 19.1% SG&A as % of Gross Profit 68.1% 1,440 bps Depreciation $20 $2 8.4% Impairment $0 $4 99.3% Operating Profit $86 $52 152.6% Interest & Other $25 ($2) (7.1%) Pre-tax $61 $50 464.7% Pre-tax Items of Interest (In millions) Q1 2019 Q1 2018 Location Gain (Loss) on Franchise Disposals$ 46.7 $ 1.2 SG&A Executive Transition Costs$ (6.3) $ - SG&A (1) Impairment Charges$ - $ (3.5) Impairment Lease Exit Charges$ - $ (4.8) SG&A Legal Related Matters$ - $ (1.5) SG&A (1) $6.0 million of Q1 2019 amount is not deductible for tax purposes. 10

NEW VEHICLE SAAR - RETAIL 15.0 14.5 YTD 2019 – 12.7M 14.3 YTD 2018 – 13.3M 14.2 14.0 13.8 13.5 13.4 13.0 13.0 12.5 12.0 11.5 11.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 2019 11

NEW VEHICLE SAME STORE - FRANCHISED Q1 2019 Q1 2018 B/(W) New Unit Volume 24,695 26,910 (8.2%) Selling Price$ 42,425 $ 40,792 4.0% Gross Margin % 5.1% 5.0% 10 bps GPU$ 2,145 $ 2,021 $ 124 Gross Profit (millions)$ 53.0 $ 54.4 (2.6%) Retail SAAR (millions) 12.7 13.3 (4.5%) New Unit Volume Jan Feb Mar Total 2019 7,511 7,579 9,605 24,695 2018 8,157 8,265 10,488 26,910 B/(W) (646) (686) (883) (2,215) % B/(W) (7.9%) (8.3%) (8.4%) (8.2%) 12

NEW VEHICLE – UNIT, GROSS PROFIT & GPU TREND Continuing Operations - Franchised Units (In millions) Gross Profit $ 35,000 $59 $58 $58 30,605 30,495 29,500 30,000 $58 25,197 $57 25,000 $57 $56 20,000 $55 15,000 $54 $54 10,000 $53 5,000 $52 - $51 Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2016 Q1 2017 Q1 2018 Q1 2019 GPU $2,200 $2,135 Highest GPU Unit and Gross $2,100 in Last 16 Profit Trends $2,000 $1,909 $1,911 $1,925 Quarters – Up are Affected by $1,900 10.9% Over Franchise $1,800 $1,700 Q1 2018 Disposals Q1 2016 Q1 2017 Q1 2018 Q1 2019 13

DAYS’ SUPPLY 80 75 70 71 66 62 60 59 50 47 40 37 35 36 35 35 33 32 30 34 26 30 30 29 28 27 20 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 New Used - Fran Used - EP Parts 14

USED VEHICLE RETAIL Franchised – Same Store Q1 2019 Q1 2018 B/(W) Used Retail Unit Volume 26,987 26,397 2.2% GPU$ 1,254 $ 1,216 $ 37 Used to New Ratio 109% 98% 1,100 bps Units/Store/Month (91 stores) 99 97 2 Total Front-End and F&I Gross Profit (In millions) Jan Feb Mar Total 2019$ 23.3 $ 22.2 $ 28.9 $ 74.3 2018 21.5 21.4 27.2 70.1 B/(W)$ 1.7 $ 0.8 $ 1.6 $ 4.1 15

F&I – GROSS PROFIT & GPU Franchised – Same Store GPU (In millions) Gross Profit $ $1,525 $78 $77 $1,499 $77 $76 $1,500 $76 $1,475 $75 $74 $1,450 $1,443 $73 $72 $1,425 $71 $1,400 $70 Q1 2019 Q1 2018 Q1 2019 Q1 2018 16

FIXED OPERATIONS Franchised – Same Store B/(W) than Q1 2018 (In millions) Q1 2019 $ % Customer Pay$ 73 $ 4 5.3% Warranty 38 2 4.8% Wholesale Parts 7 (0) (2.3%) Internal, Sublet and Other 42 (1) (2.1%) Total Gross Profit$ 160 $ 4 2.8% Total Gross Profit Up 4.4% Adjusted for Selling Days 17

Q1 2019 FINANCIAL REVIEW ECHOPARK SEGMENT 18

First ECHOPARK SEGMENT Q1 2019 Quarter of RESULTS Profitability B/(W) than Q1 2018 (In millions, except unit and per unit data) Q1 2019 $ % Revenue $249.6 $118.1 89.8% Gross Profit $25.7 $13.6 112.5% SG&A $20.1 $4.1 17.0% SG&A as % of Gross Profit 78.2% 12,210 bps Depreciation Expense $2.4 ($0.8) (45.2%) Impairment $1.9 ($1.8) (2237.5%) Operating Profit $1.3 $15.1 109.2% Interest & Other $1.1 ($0.3) (34.3%) Pre-tax $0.2 $14.9 101.2% Retail Units 11,051 5,533 100.3% Total Front-End and F&I Gross Profit per Unit Retailed $2,351 464 24.6% Pre-tax Items of Interest (In millions) Q1 2019 Q1 2018 Location Long-Term Compensation Charges$ - $ (9.2) SG&A Impairment Charges$ (1.9) $ - Impairment 19

ECHOPARK RETAIL UNIT SALES GROWTH Revenue Units $300,000,000  12,000 11,051  10,055  $250,000,000  10,000 8,762  $200,000,000 7,459  7,698   8,000 $150,000,000 5,518   6,000 4,496  $100,000,000  4,000 2,400  2,049  $50,000,000 1,585  1,685  1,673   2,000 920  941  1,136  660  881  764  212  $0  ‐ Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Mar 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 (fcst) 9.9% Better than Internal Forecast 20

ECHOPARK CASH FLOW – CORPORATE & STORE LEVEL EchoPark Corporate Adjusted EBITDA $0 • Corporate Cost Structure ($1,000) is Maturing and ($1,147) ($2,000) Becoming More Efficient • Expect Leveraging of ($3,000) ($2,612) ($2,966) Corporate Investment to ($4,000) ($3,608) ($3,689) ($4,136) Continue Improving ($4,309) ($4,184) ($5,000) • May Fluctuate in Periods (In thousands) ($6,000) ($5,742) of Expansion ($7,000) Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 EchoPark Store Level Adjusted EBITDA $7,000 • Stores Continue Maturing $6,104 $6,000 • Estimate Current Stores are on Average 50% Mature $5,000 • Expect Current Upward Trend $4,000 to Continue $3,000 $2,725 • Sequential Increase of $2,023 270.6% from Q4 2018 $2,000 $1,805 $1,647 • Q4 2018 Negatively Affected $1,000 $270 $405 $255 by Relocation of Dallas Store $92 $0 (In thousands) Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 21 Note: See Non-GAAP Section for Reconciliation of Adjusted EBITDA to Net Income

ECHOPARK CASH FLOW - CONSOLIDATED $6,000 $4,957 $4,000 Total EchoPark Adjusted EBITDA $2,000 $0 ($807) ($2,000) ($2,161) ($2,042) ($2,561) ($3,017) ($4,000) ($3,353) ($3,866) ($4,216) (In thousands) ($6,000) Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 • Current Inventory Acquisition and Pricing Strategy Began in Q2 2018 • New Store Openings and Relocation of Dallas Store in Q4 2018 Compressed Cash Flow • Current Levels of Cash Flow Available to Fund Future Expansion Note: See Non-GAAP Section for Reconciliation of Adjusted EBITDA to Net Income 22

ECHOPARK MODEL ESTIMATES Medium Large Average Selling Price$ 20,500 $ 20,500 Medium Stores: Annual Revenues$ 184,500,000 $ 369,000,000 Denver - Centennial Average Monthly Unit Volume - 100% Mature 750 1,500 Denver - Colorado Springs Total Front-End and F&I GPU$ 2,150 $ 2,150 San Antonio - New Braunfels San Antonio - West Average Monthly Profitability - 100% Mature$ 600,000 $ 1,200,000 Charlotte Average Compensation Per Employee (with Fringe)$ 78,000 $ 78,000 Large Stores: Dallas Staff (Headcount) 105 170 Denver - Thornton Average Retail Unit Sales Per Head 7.1 8.8 Houston Target Inventory Days' Supply 30 Days 30 Days Other Targeted Markets: Atlanta Working Capital Investment - 100% Mature$ 14,000,000 $ 30,000,000 Los Angeles Fixed Investment - 100% Mature$ 16,000,000 $ 20,000,000 Phoenix Total Capital Investment$ 30,000,000 $ 50,000,000 Orlando Pre-tax ROI - 100% Mature 24% 29% 23

Q1 2019 FINANCIAL REVIEW CONSOLIDATED 24

CONSOLIDATED Q1 2019 RESULTS B/(W) than Q1 2018 (In millions, except per share data) Q1 2019 $ % Revenue $2,389 ($12) (0.5%) Gross Profit $359 $7 1.8% SG&A $247 $58 19.0% SG&A as % of Gross Profit 68.8% 1,770 bps Depreciation $23 $1 4.6% Impairment $2 $2 46.4% Operating Profit $87 $67 332.5% Interest & Other $26 ($2) (8.0%) Continuing Ops: Profit (after tax) $42 $44 2202.9% Diluted EPS $0.99 $1.04 2080.0% Pre-tax Items of Interest (In millions) Q1 2019 Q1 2018 Location Gain (Loss) on Franchise Disposals$ 46.7 $ 1.2 SG&A Executive Transition Costs$ (6.3) $ - SG&A (1) Long-Term Compensation Charges$ - $ (9.2) SG&A (2) Impairment Charges$ (1.9) $ (3.6) Impairment (3) Lease Exit Charges$ - $ (4.8) SG&A Legal Related Matters$ - $ (1.5) SG&A (1) $6.0 million of Q1 2019 amount is not deductible for tax purposes. (2) $9.2 million Q1 2018 amount relates to EchoPark. 25 (3) $1.9 million Q1 2019 amount relates to EchoPark.

Q1 2019 CONSOLIDATED REVENUE & GROSS PROFIT B/(W) than Q1 2018 (In millions, except unit and per unit data) Q1 2019 $ % New Vehicle Revenue $1,066 ($115) (9.7%) Used Retail Vehicle Revenue $820 $111 15.7% Fixed Operations Revenue $341 ($10) (2.9%) F&I Revenue $106 $13 13.4% Total Revenue $2,389 ($12) (0.5%) New Vehicle Gross Profit $54 ($3) (5.3%) - Units 25,197 (4,303) (14.6%) - GPU $2,135 $210 10.9% Used Retail Vehicle Gross Profit $37 $0 0.6% - Units 38,463 4,724 14.0% - GPU $962 ($128) (11.7%) F&I Gross Profit $106 $13 13.4% - GPU $1,676 $186 12.5% Fixed Operations Gross Profit $163 ($6) (3.8%) Total Gross Profit $359 $7 1.8% All‐Time Quarterly  Record 26

Q1 2019 CONSOLIDATED REVENUE & GROSS PROFIT – SAME STORE B/(W) than Q1 2018 (In millions, except unit and per unit data) Q1 2019 $ % New Vehicle Revenue $1,048 ($50) (4.6%) Used Retail Vehicle Revenue $765 $99 14.8% Fixed Operations Revenue $335 $8 2.3% F&I Revenue $97 $12 14.0% Total Revenue $2,298 $61 2.7% New Vehicle Gross Profit $53 ($1) (2.6%) - Units 24,695 (2,215) (8.2%) - GPU $2,145 $124 6.1% Used Retail Vehicle Gross Profit $34 $1 2.8% - Units 35,609 4,246 13.5% - GPU $947 ($99) (9.4%) F&I Gross Profit $97 $12 14.0% - GPU $1,618 $149 10.1% Fixed Operations Gross Profit $160 $3 2.0% Total Gross Profit $343 $17 5.3% 27

Q1 2019 CONSOLIDATED SG&A TO GROSS PROFIT 86.5% 68.8% 23.3% 9.1% 4.2% 6.2% 51.3% 52.5% 4.2% 4.5% Q1 2019 Q1 2018 Advertising Comp Rent Other Note: See previous slides for items of interest affecting comparability. 28

Q1 2019 CONSOLIDATED INTEREST EXPENSE B/(W) than Q1 2018 (In millions) Q1 2019 $ % Floor Plan Interest Expense $13 ($3) (23.9%) Interest Expense, Other $13 $1 4.5% Total Interest Expense $26 ($2) (8.1%) Floor Plan Higher Due to Rate Increases • New Up 65 bps • Used Up 37 bps Fed Funds Rate Increases • March 21, 2018 – 0.25% • June 13, 2018 – 0.25% • September 26, 2018 – 0.25% • December 20, 2018 – 0.25% • Current Fed Sentiment is Holding Current 29

Q1 2019 CONSOLIDATED DEPRECIATION EXPENSE B/(W) than Q1 2018 (In millions) Q1 2019 $ % Depreciation Expense - Franchised $20 $2 8.4% Depreciation Expense - EchoPark $2 ($1) (45.2%) Total $23 $1 4.6% 30

2019 CAP EX YTD Estimated (In millions) FY 2018 Q1 2019 2019 Real Estate & Facility Related$ 147.6 $ 25.7 $ 88.4 All Other Cap Ex 16.0 4.9 20.0 Subtotal$ 163.6 $ 30.6 $ 108.4 Less: Mortgages (21.1) - - Net Cash Used - Cap Ex$ 142.5 $ 30.6 $ 108.4 31

DEBT COVENANTS Covenant Q4 2018 Q1 2019 Liquidity Ratio >= 1.05 1.10 1.16 Fixed Charge Coverage Ratio >= 1.20 1.43 1.43 Total Lease Adjusted Leverage Ratio <= 5.75 5.25 4.90 Compliant with all Covenants 32

SHARE REPURCHASES (In thousands, except per share data) Shares $/Share $ Availability As of December 31, 2018$ 83,575 Q1 2019 Activity 149 $ 15.63 $ 2,333 (2,333) Total 2019 Activity 149 $ 15.63 $ 2,333 $ 81,242 33

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED DILUTED EARNINGS PER SHARE Q1 2019 Q1 2018 (In thousands, except per share data) Amount Diluted EPS Amount Diluted EPS Reported Net Income and Diluted Earnings Per Share from Continuing Operations$ 42,349 $ 0.99 $ (2,014) $ (0.05) Pre-tax Adjustments: (Gain) Loss on Franchise Disposals (46,680) (1,190) Executive Transition Costs (1) 6,264 - Long-Term Compensation Charges - 9,189 Impairment Charges 1,926 3,643 Lease Exit Charges - 4,814 Legal Related Matters - 1,500 Total Pre-tax Adjustments$ (38,490) $ 17,956 Tax Effect of Adjustments 12,902 (4,893) Adjusted Net Income and Diluted Earnings Per Share from Continuing Operations $ 16,761 $ 0.39 $ 11,049 $ 0.26 (1) $6.0 million of Q1 2019 amount is not deductible for tax purposes. 35

ADJUSTED EBITDA – CONSOLIDATED LTM (In thousands) 2011 2012 2013 2014 2015 2016 2017 2018 Q1 2019 Net Income$ 76,254 $ 89,101 $ 81,618 $ 97,217 $ 86,311 $ 93,193 $ 92,983 $ 51,650 $ 96,066 Non-Floor Plan Interest 63,576 58,453 55,356 52,269 49,524 48,034 50,531 52,049 51,337 Depreciation and Amortization 51,164 52,616 58,139 62,161 72,130 81,034 92,127 96,652 95,398 Income Taxes 46,907 47,648 43,386 62,346 55,962 59,899 13,198 22,645 43,490 Stock Compensation 3,698 5,160 7,208 7,675 9,814 11,165 11,119 11,853 11,705 Lease Exit Charges 4,384 4,286 2,915 302 1,848 1,386 2,157 1,709 (3,531) Impairment Charges 1,151 950 9,872 6,594 17,955 8,063 9,394 29,514 27,823 Loss (Gain) on Debt Extinguishment 1,107 19,713 28,238 - - (6) 14,607 - - Long-Term Compensation Charges - - - - - - - 32,522 23,333 Loss (Gain) on Franchise Disposals 386 (10,343) 457 (11,279) (2,748) 48 (9,980) (39,307) (84,866) Adjusted EBITDA$ 248,627 $ 267,584 $ 287,189 $ 277,285 $ 290,796 $ 302,816 $ 276,136 $ 259,287 $ 260,755 36

ADJUSTED EBITDA BY SEGMENT – Q1 2019 VS. Q1 2018 Q1 2019 Q1 2018 Continuing Discontinued Continuing Discontinued (In thousands) Franchised EchoPark Operations Operations Total Franchised EchoPark Operations Operations Total Net Income$ 42,349 $ (128) $ 42,221 $ (2,014) $ (180) $ (2,194) Income Taxes 18,987 (52) 18,935 (1,842) (67) (1,910) Income Before Income Taxes$ 61,156 $ 180 $ 61,336 $ (180) $ 61,157 $ 10,830 $ (14,686) $ (3,856) $ (248) $ (4,104) Non-Floor Plan Interest 11,829 433 12,262 - 12,262 12,469 389 12,858 115 12,973 Depreciation and Amortization 20,823 2,417 23,240 - 23,240 22,829 1,667 24,496 - 24,496 Stock Compensation 2,814 - 2,814 - 2,814 2,962 - 2,962 - 2,962 Lease Exit Charges (170) - (170) - (170) 4,955 7 4,961 109 5,070 Impairment Charges 26 1,926 1,952 - 1,952 3,561 82 3,643 - 3,643 Loss (Gain) on Debt Extinguishment - - - - - - - - - - Long-Term Compensation Charges - - - - - - 9,189 9,189 - 9,189 Loss (Gain) on Franchise Disposals (46,750) - (46,750) - (46,750) (1,190) - (1,190) - (1,190) Adjusted EBITDA$ 49,728 $ 4,957 $ 54,685 $ (180) $ 54,505 $ 56,415 $ (3,353) $ 53,063 $ (24) $ 53,038

ADJUSTED EBITDA BY SEGMENT – Q4 2018 VS. Q4 2017 Q4 2018 Q4 2017 Continuing Discontinued Continuing Discontinued (In thousands) Franchised EchoPark Operations Operations Total Franchised EchoPark Operations Operations Total Net Income$ 21,981 $ (161) $ 21,820 $ 62,128 $ (176) $ 61,952 Income Taxes 9,212 (60) 9,152 (8,283) (116) (8,399) Income Before Income Taxes$ 37,388 $ (6,195) $ 31,192 $ (221) $ 30,971 $ 58,441 $ (4,596) $ 53,846 $ (293) $ 53,553 Non-Floor Plan Interest 12,902 423 13,325 89 13,414 12,441 284 12,725 123 12,847 Depreciation and Amortization 21,087 2,210 23,297 - 23,297 22,598 1,354 23,953 - 23,953 Stock Compensation 1,264 - 1,264 - 1,264 2,217 - 2,217 - 2,217 Lease Exit Charges (1,080) 4 (1,077) 89 (987) 16 8 23 118 141 Impairment Charges 14,053 1,500 15,553 - 15,553 5,890 188 6,079 - 6,079 Loss (Gain) on Debt Extinguishment - - - - - - - - - - Long-Term Compensation Charges - - - - - - 1,271 1,271 - 1,271 Loss (Gain) on Franchise Disposals (158) - (158) - (158) (1,507) - (1,507) (6) (1,513) Adjusted EBITDA$ 85,456 $ (2,059) $ 83,397 $ (43) $ 83,355 $ 100,095 $ (1,490) $ 98,605 $ (58) $ 98,548

ADJUSTED EBITDA BY SEGMENT – Q3 2018 VS. Q3 2017 Q3 2018 Q3 2017 Continuing Discontinued Continuing Discontinued (In thousands) Franchised EchoPark Operations Operations Total Franchised EchoPark Operations Operations Total Net Income$ 15,301 $ (183) $ 15,118 $ 19,730 $ (290) $ 19,440 Income Taxes 7,330 (69) 7,262 14,126 (192) 13,935 Income Before Income Taxes$ 28,087 $ (5,455) $ 22,632 $ (252) $ 22,380 $ 38,723 $ (4,866) $ 33,856 $ (481) $ 33,375 Non-Floor Plan Interest 12,279 423 12,702 98 12,800 12,117 262 12,379 132 12,510 Depreciation and Amortization 22,141 1,999 24,139 - 24,139 22,136 1,360 23,496 - 23,496 Stock Compensation 4,578 - 4,578 - 4,578 3,179 - 3,179 - 3,179 Lease Exit Charges 24 5 29 103 132 (181) 9 (173) 362 189 Impairment Charges 0 - 0 - 0 200 - 200 - 200 Loss (Gain) on Debt Extinguishment - - - - - (0) - (0) - (0) Long-Term Compensation Charges - - - - - - - - - - Loss (Gain) on Franchise Disposals 88 - 88 - 88 (8,490) - (8,490) - (8,490) Adjusted EBITDA$ 67,198 $ (3,029) $ 64,169 $ (50) $ 64,119 $ 67,684 $ (3,236) $ 64,448 $ 12 $ 64,460

ADJUSTED EBITDA BY SEGMENT – Q2 2018 VS. Q2 2017 Q2 2018 Q2 2017 Continuing Discontinued Continuing Discontinued (In thousands) Franchised EchoPark Operations Operations Total Franchised EchoPark Operations Operations Total Net Income$ 17,122 $ (216) $ 16,905 $ 12,314 $ (183) $ 12,132 Income Taxes 8,223 (81) 8,142 7,955 (118) 7,837 Income Before Income Taxes$ 53,176 $ (27,832) $ 25,344 $ (297) $ 25,047 $ 28,088 $ (7,818) $ 20,270 $ (301) $ 19,969 Non-Floor Plan Interest 12,349 406 12,755 106 12,862 11,889 252 12,140 139 12,280 Depreciation and Amortization 22,801 1,919 24,720 - 24,720 21,385 1,310 22,695 - 22,695 Stock Compensation 3,049 - 3,049 - 3,049 3,138 - 3,138 - 3,138 Lease Exit Charges (2,618) 6 (2,612) 106 (2,506) 399 675 1,074 139 1,213 Impairment Charges 10,317 - 10,317 - 10,317 890 1,715 2,605 - 2,605 Loss (Gain) on Debt Extinguishment - - - - - 0 - 0 - 0 Long-Term Compensation Charges - 23,333 23,333 - 23,333 - - - - - Loss (Gain) on Franchise Disposals (38,047) - (38,047) - (38,047) - - - - - Adjusted EBITDA$ 61,028 $ (2,168) $ 58,860 $ (84) $ 58,776 $ 65,789 $ (3,866) $ 61,923 $ (22) $ 61,901

ADJUSTED EBITDA BY SEGMENT – Q1 2017 Q1 2017 Continuing Discontinued (In thousands) Franchised EchoPark Operations Operations Total Net Income$ (20) $ (521) $ (541) Income Taxes 173 (347) (174) Income Before Income Taxes$ 5,726 $ (5,573) $ 152 $ (868) $ (715) Non-Floor Plan Interest 12,568 172 12,740 153 12,893 Depreciation and Amortization 20,798 1,185 21,983 - 21,983 Stock Compensation 2,585 - 2,585 - 2,585 Lease Exit Charges 26 - 26 588 614 Impairment Charges 510 - 510 - 510 Loss (Gain) on Debt Extinguishment 14,607 - 14,607 - 14,607 Long-Term Compensation Charges - - - - - Loss (Gain) on Franchise Disposals 24 - 24 - 24 Adjusted EBITDA$ 56,843 $ (4,216) $ 52,627 $ (127) $ 52,500