Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 27, 2022 | |
Document Information [Line Items] | ||
Entity Registrant Name | SONIC AUTOMOTIVE, INC. | |
Entity Central Index Key | 0001043509 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SAH | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
City Area Code | (704) | |
Entity Address, Address Line One | 4401 Colwick Road | |
Entity Address, Postal Zip Code | 28211 | |
Entity Tax Identification Number | 56-2010790 | |
Local Phone Number | 566-2400 | |
Entity File Number | 1-13395 | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Address, City or Town | Charlotte, | |
Entity Address, State or Province | NC | |
Document Quarterly Report | true | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 21,861,771 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 12,029,375 |
Details
Details | 3 Months Ended |
Mar. 31, 2024 | |
Document Information [Line Items] | |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Security Exchange Name | NYSE |
Entity Incorporation, State or Country Code | DE |
Document Transition Report | false |
Title of 12(b) Security | Class A Common Stock, par value $0.01 per share |
Entity Small Business | false |
Entity Emerging Growth Company | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues: | ||
Revenues | $ 3,384,000,000 | $ 3,491,200,000 |
Cost of Sales: | ||
Cost of Sales | (2,847,800,000) | (2,937,700,000) |
Gross profit | 536,200,000 | 553,500,000 |
Selling, general and administrative expenses | (392,200,000) | (412,800,000) |
Impairment charges | (1,000,000) | 0 |
Depreciation and amortization | (36,300,000) | (34,300,000) |
Operating income (loss) | 106,700,000 | 106,400,000 |
Other income (expense): | ||
Interest expense, floor plan | (20,300,000) | (14,600,000) |
Interest expense, other, net | (29,000,000) | (28,400,000) |
Other income (expense), net | 100,000 | 200,000 |
Total other income (expense) | (49,200,000) | (42,800,000) |
Income (loss) from continuing operations before taxes | 57,500,000 | 63,600,000 |
Provision for income taxes for continuing operations - benefit (expense) | (15,500,000) | (15,900,000) |
Discontinued operations: | ||
Net income (loss) | $ 42,000,000 | $ 47,700,000 |
Basic earnings (loss) per common share: | ||
Earnings (loss) per common share (usd per share) | $ 1.24 | $ 1.33 |
Weighted average common shares outstanding | 34,000 | 35,900 |
Diluted earnings (loss) per common share: | ||
Earnings (loss) per common share (usd per share) | $ 1.20 | $ 1.29 |
Weighted average common shares outstanding | 34,900 | 36,900 |
Total vehicles | ||
Revenues: | ||
Revenues | $ 2,768,300,000 | $ 2,892,100,000 |
Cost of Sales: | ||
Cost of Sales | (2,625,000,000) | (2,720,100,000) |
New vehicles | ||
Revenues: | ||
Revenues | 1,475,400,000 | 1,461,600,000 |
Cost of Sales: | ||
Cost of Sales | (1,378,300,000) | (1,322,600,000) |
Used vehicles | ||
Revenues: | ||
Revenues | 1,215,600,000 | 1,344,900,000 |
Cost of Sales: | ||
Cost of Sales | (1,168,600,000) | (1,314,900,000) |
Wholesale vehicles | ||
Revenues: | ||
Revenues | 77,300,000 | 85,600,000 |
Cost of Sales: | ||
Cost of Sales | (78,100,000) | (82,600,000) |
Retail New Vehicles [Member] | ||
Revenues: | ||
Revenues | 1,455,800,000 | 1,442,800,000 |
Cost of Sales: | ||
Cost of Sales | (1,359,400,000) | (1,304,700,000) |
Fleet New Vehicles [Member] | ||
Revenues: | ||
Revenues | 19,600,000 | 18,800,000 |
Cost of Sales: | ||
Cost of Sales | (18,900,000) | (17,900,000) |
Parts, service and collision repair | ||
Revenues: | ||
Revenues | 446,700,000 | 430,500,000 |
Cost of Sales: | ||
Cost of Sales | (222,800,000) | (217,600,000) |
Finance, insurance and other, net | ||
Revenues: | ||
Revenues | $ 169,000,000 | $ 168,600,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 42,000 | $ 47,700 |
Other comprehensive income (loss) before taxes: | ||
Change in fair value of interest rate swap and interest rate cap agreements | 700 | (100) |
Total other comprehensive income (loss) before taxes | 700 | (100) |
Provision for income tax benefit (expense) related to components of other comprehensive income (loss) | (200) | 0 |
Other comprehensive income (loss) | 500 | (100) |
Comprehensive income (loss) | $ 42,500 | $ 47,600 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 15,100 | $ 28,900 |
Receivables, net | 420,600 | 528,100 |
Inventories | 1,700,500 | 1,578,300 |
Other current assets | 374,800 | 385,100 |
Total current assets | 2,511,000 | 2,520,400 |
Property and Equipment, net | 1,598,800 | 1,601,000 |
Goodwill | 253,800 | 253,800 |
Other Intangible Assets, net | 417,400 | 417,400 |
Right-of-use asset | 207,100 | 222,600 |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | 306,500 | 236,600 |
Other Assets | 113,000 | 112,800 |
Total Assets | 5,407,600 | 5,364,600 |
Current Liabilities: | ||
Notes payable - floor plan - trade | 144,400 | 152,100 |
Notes payable - floor plan - non-trade | 1,516,700 | 1,520,600 |
Trade accounts payable | 143,900 | 149,800 |
Operating Lease, Liability, Current | 27,600 | 29,900 |
Finance Lease, Liability, Current | 10,700 | 10,200 |
Other accrued liabilities | 388,400 | 370,200 |
Current maturities of long-term debt | 68,000 | 60,100 |
Total current liabilities | 2,299,700 | 2,292,900 |
Long-Term Debt | 1,583,400 | 1,616,500 |
Other Long-Term Liabilities | 88,900 | 89,600 |
Operating Lease, Liability, Noncurrent | 204,000 | 219,200 |
Finance Lease, Liability, Noncurrent | 327,200 | 254,500 |
Commitments and Contingencies | ||
Stockholders' Equity: | ||
Class A convertible preferred stock, none issued | 0 | 0 |
Paid-in capital | 862,600 | 855,400 |
Retained Earnings (Accumulated Deficit) | 1,270,400 | 1,238,600 |
Accumulated other comprehensive income (loss) | 2,100 | 1,600 |
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 | (1,231,500) | (1,204,500) |
Total Stockholders' Equity | 904,400 | 891,900 |
Total Liabilities and Stockholders' Equity | 5,407,600 | 5,364,600 |
Class A Common Stock | ||
Stockholders' Equity: | ||
Common stock, value | $ 700 | $ 700 |
Treasury Stock, Common, Shares | 47,186,399 | 46,686,608 |
Class B common stock | ||
Stockholders' Equity: | ||
Common stock, value | $ 100 | $ 100 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
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 | 69,047,806 | 68,618,393 |
Common stock, shares outstanding | 21,861,407 | 21,931,785 |
Class B common stock | ||
Common stock, par value (usd per share) | $ 0.01 | |
Common stock, shares authorized | 30,000,000 | |
Common stock, shares issued | 12,029,375 |
CONDENSED CONSOLIDATED STATEM_3
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 | Class A Common Stock Common Stock | Class A Common Stock Retained Earnings | Class A Common Stock Treasury Stock, Common | Class B Common Stock | Class B Common Stock Common Stock | Class B Common Stock Retained Earnings |
Beginning balance at Dec. 31, 2022 | $ 895,200 | $ 819,400 | $ 1,100,300 | $ 1,600 | $ 700 | $ (1,026,900) | $ 100 | ||||
Beginning balance (shares) at Dec. 31, 2022 | 67,600 | 43,400 | 12,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Shares awarded under stock compensation plan | 7,600 | 7,600 | $ 0 | ||||||||
Shares awarded under stock compensation plan (shares) | 700 | ||||||||||
Purchase of treasury stock | (90,700) | $ (90,700) | |||||||||
Purchases of treasury stock (shares) | (1,600) | ||||||||||
Change in fair value of interest rate swap and interest rate cap agreements, net of tax expense of $1,563 | (100) | (100) | |||||||||
Restricted stock amortization | 5,000 | 5,000 | |||||||||
Net income (loss) | 47,700 | 47,700 | |||||||||
Dividends, Common Stock | $ 6,500 | $ 6,500 | $ 3,400 | $ 3,400 | |||||||
Ending balance at Mar. 31, 2023 | 854,800 | 832,000 | 1,138,100 | 1,500 | $ 700 | $ (1,117,600) | $ 100 | ||||
Ending balance (shares) at Mar. 31, 2023 | 68,300 | 45,000 | 12,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends declared per common share (usd per share) | $ 0.30 | $ 0.30 | |||||||||
Retained Earnings (Accumulated Deficit) | 1,238,600 | ||||||||||
Beginning balance at Dec. 31, 2023 | 891,900 | 855,400 | 1,238,600 | 1,600 | $ 700 | $ (1,204,500) | $ 100 | ||||
Beginning balance (shares) at Dec. 31, 2023 | 68,600 | 46,700 | 12,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Shares awarded under stock compensation plan | 600 | 600 | $ 0 | ||||||||
Shares awarded under stock compensation plan (shares) | 400 | ||||||||||
Purchase of treasury stock | (27,000) | $ (27,000) | |||||||||
Purchases of treasury stock (shares) | (500) | ||||||||||
Change in fair value of interest rate swap and interest rate cap agreements, net of tax expense of $1,563 | 500 | 500 | |||||||||
Restricted stock amortization | 6,600 | ||||||||||
Net income (loss) | 42,000 | 42,000 | |||||||||
Dividends, Common Stock | $ 6,600 | $ 6,600 | $ 3,600 | $ 3,600 | |||||||
Ending balance at Mar. 31, 2024 | 904,400 | 862,600 | $ 1,270,400 | $ 2,100 | $ 700 | $ (1,231,500) | $ 100 | ||||
Ending balance (shares) at Mar. 31, 2024 | 69,000 | 47,200 | 12,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends declared per common share (usd per share) | $ 0.28 | $ 0.28 | |||||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | $ 6,600 | ||||||||||
Tax effect on fair value of interest rate swap and rate cap agreements | (200) | ||||||||||
Retained Earnings (Accumulated Deficit) | $ 1,270,400 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Tax effect on fair value of interest rate swap and rate cap agreements | $ (200) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ 42,000 | $ 47,700 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization of property and equipment | 31,500 | 30,000 |
Debt issuance cost amortization | 1,600 | 1,600 |
Stock-based compensation expense | 6,600 | 5,000 |
Deferred income taxes | (3,700) | (3,300) |
Asset impairment charges | 1,000 | 0 |
Loss (gain) on disposal of dealerships and property and equipment | 1,500 | 100 |
Other | 1,000 | 600 |
Changes in assets and liabilities that relate to operations: | ||
Receivables | 107,300 | 87,500 |
Inventories | (122,200) | (234,600) |
Other assets | 6,100 | 4,200 |
Notes payable - floor plan - trade | (7,700) | 4,200 |
Trade accounts payable and other liabilities | 5,100 | 23,000 |
Total adjustments | 28,100 | (81,700) |
Net cash provided by (used in) operating activities | 70,100 | (34,000) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of businesses, net of cash acquired | 0 | (75,100) |
Purchases of land, property and equipment | (43,800) | (37,200) |
Proceeds from sales of property and equipment | 4,400 | 4,800 |
Net cash provided by (used in) investing activities | (39,400) | (107,500) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net (repayments) borrowings on notes payable - floor plan - non-trade | (21,100) | 188,800 |
Borrowings on revolving credit facilities | 15,600 | 0 |
Repayments on revolving credit facilities | (15,600) | 0 |
Debt issuance costs | 4,900 | (1,300) |
Principal payments and repurchase of long-term debt | (22,000) | (19,500) |
Purchases of treasury stock | (27,000) | (90,700) |
Finance Lease, Principal Payments | 2,100 | 2,200 |
Issuance of shares under stock compensation plans | 600 | 7,600 |
Dividends paid | (10,200) | (10,200) |
Net cash provided by (used in) financing activities | (44,500) | 72,500 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (13,800) | (69,000) |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 28,900 | 229,200 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 15,100 | 160,200 |
Cash paid (received) during the period for: | ||
Interest, including amount capitalized | 34,300 | 26,500 |
Income taxes | $ (200) | $ (400) |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Cash Flows [Abstract] | ||
Tax effect on fair value of interest rate swap and rate cap agreements | $ 200 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Per Share Data and Stockholders' Equity | Earnings Per Share – The calculation of diluted earnings per share considers the potential dilutive effect of outstanding restricted stock units, restricted stock and stock options granted under Sonic’s stock compensation plans (and any non-forfeitable dividends paid on such awards). |
Revenue from Contract with Customer | Revenue Recognition – 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. We do not include the cost of obtaining contracts within the related revenue streams since we elected the practical expedient to expense the costs to obtain a contract when incurred. Management has evaluated our established business processes, revenue transaction streams and accounting policies, and identified our 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 third-party vehicle financing and the sale of third-party service, warranty and other insurance contracts; and (5) the performance of vehicle maintenance and repair services and the sale of related parts and accessories. The transaction price for a retail vehicle sale is specified in the contract with the customer and encompasses both cash and non-cash considerations. In the context of a retail vehicle sale, customers frequently trade in their existing vehicles. The value of this trade-in is determined based on its stand-alone selling price as specified in the contract, utilizing various third-party pricing sources. There are no other non-cash forms of consideration associated with retail vehicle sales, and sales are reported net of sales tax and other similar assets. Generally, performance obligations are satisfied when the associated vehicle is delivered to a customer and customer acceptance has occurred, over time as the maintenance and repair services are performed, or at the time of wholesale and retail parts sales. We do 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). Retrospective finance and insurance revenues (“F&I retro revenues”) are recognized when the product contract has been executed with the end customer and the transaction price is estimated each reporting period based on the expected value method using historical and projected data. F&I retro revenues can vary based on a variety of factors, including number of contracts and history of cancellations and claims. Accordingly, we utilize 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. We record revenue when vehicles are delivered to customers, as vehicle service work is performed and when parts are delivered. Conditions for completing a sale include having an agreement with the customer, including pricing, and it being probable that the proceeds from the sale will be collected. The accompanying unaudited condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023 include approximately $3.7 million and $31.8 million, respectively, related to contract assets from F&I retro revenues recognition, which are recorded in receivables, net. In addition, we recorded approximately $19.8 million related to contract assets from F&I retro revenues recognition in other assets as of March 31, 2024. Changes in contract assets from December 31, 2023 to March 31, 2024 were primarily due to ordinary business activity, including the receipt of cash for amounts earned and recognized in prior periods. Please refer to Note 1, “Description of Business and Summary of Significant Accounting Policies,” to the consolidated financial statements in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2023 for further discussion of our revenue recognition policies and processes. |
Error Correction |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: March 31, 2024 December 31, 2023 (In millions) New vehicles $ 938.5 $ 799.6 Used vehicles 481.5 505.7 Service loaners (1) 177.8 172.7 Parts, accessories and other 102.7 100.3 Inventories $ 1,700.5 $ 1,578.3 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Assets held for sale as of March 31, 2024 and December 31, 2023 consisted of real property not currently used in operations that we expect to dispose of in the next 12 months. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
6.125 Note Text Block [Text Block] | On October 27, 2021, we issued $650.0 million in aggregate principal amount of 4.625% Notes, which will mature on November 15, 2029. Sonic used the net proceeds from the issuance of the 4.625% Notes, along with the net proceeds of the 4.875% Notes, to fund the acquisition of RFJ Auto Partners, Inc. and its subsidiaries completed in December 2021 (“RFJ Acquisition”) and to repay existing debt. The 4.625% Notes were issued under an Indenture, dated as of October 27, 2021 (the “2029 Indenture”), by and among the Company, certain subsidiary guarantors named therein (collectively, the “Guarantors”) and U.S. Bank National Association, as trustee (the “trustee”). The 4.625% Notes are unconditionally guaranteed, jointly and severally, on a senior unsecured basis initially by all of the Company’s domestic operating subsidiaries. The parent company has no independent assets or operations. The non-domestic operating subsidiary that is not a guarantor is considered minor. Under certain circumstances set forth in the 2029 Indenture, the guarantees of the certain subsidiaries of the Company comprising the EchoPark Business (as defined in the 2029 Indenture) may be released. The 2029 Indenture also provides substantial flexibility for the Company to enter into fundamental transactions involving the EchoPark Business. The 2029 Indenture provides that interest on the 4.625% Notes will be payable semi-annually in arrears on May 15 and November 15 of each year beginning May 15, 2022. The 2029 Indenture also contains other restrictive covenants and default provisions common for an issue of senior notes of this nature. The 4.625% Notes are redeemable by the Company under certain circumstances. For further discussion of the 4.625% Notes, see Note 6, “Long-Term Debt,” to the consolidated financial statements in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2023. 4.875% Notes On October 27, 2021, we issued $500.0 million in aggregate principal amount of 4.875% Notes, which will mature on November 15, 2031. Sonic used the net proceeds from the issuance of the 4.875% Notes, along with the net proceeds of the 4.625% Notes, to fund the RFJ Acquisition and to repay existing debt. The 4.875% Notes were issued under an Indenture, dated as of October 27, 2021 (the “2031 Indenture”), by and among the Company, the Guarantors and the trustee. The 4.875% Notes are unconditionally guaranteed, jointly and severally, on a senior unsecured basis initially by all of the Company’s domestic operating subsidiaries. The parent company has no independent assets or operations. The non-domestic operating subsidiary that is not a guarantor is considered minor. Under certain circumstances set forth in the 2031 Indenture, the guarantees of the certain subsidiaries of the Company comprising the EchoPark Business (as defined in the 2031 Indenture) may be released. The 2031 Indenture also provides substantial flexibility for the Company to enter into fundamental transactions involving the Echo-Park Business. The 2031 Indenture provides that interest on the 4.875% Notes will be payable semi-annually in arrears on May 15 and November 15 of each year beginning May 15, 2022. The 2031 Indenture also contains other restrictive covenants and default provisions common for an issue of senior notes of this nature. The 4.875% Notes are redeemable by the Company under certain circumstances. For further discussion of the 4.875% Notes, see Note 6, “Long-Term Debt,” to the consolidated financial statements in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2023. |
2019 Mortgage Facility Text Block [Text Block] | Mortgage Facility On November 22, 2019, we entered into a delayed draw-term loan credit agreement, which was scheduled to mature on November 22, 2024 (the “Mortgage Facility”). On October 11, 2021, we entered into an amendment to the Mortgage Facility to permit the consummation of the RFJ Acquisition and the issuance of the 4.625% Notes and the 4.875% Notes. On November 17, 2022, we entered into an amendment to the Mortgage Facility to, among other things, extend the scheduled maturity date to November 17, 2027. On November 17, 2022, in connection with the closing of the Fourth Mortgage Facility Amendment, the Company incurred a $320.0 million term loan, with a portion of the proceeds used to repay the entire $77.6 million principal amount of a prior term loan. The $320.0 million borrowing amortizes on a fixed schedule through the maturity date. In addition, the lenders under the Mortgage Facility committed to providing, upon the terms set forth in the Fourth Mortgage Facility Amendment and upon the pledging of sufficient collateral by the Company, delayed draw-term loans in an aggregate principal amount up to $85.0 million (the “Delayed Draw Credit Facility”) and revolving loans in an aggregate principal amount not to exceed $95.0 million. Based on this, the aggregate commitments of the lenders under the Mortgage Facility equaled a total of $500.0 million, after satisfaction of the conditions set forth in the Mortgage Facility, including the appraisal and pledging of collateral of a specified value. The Fourth Mortgage Facility Amendment also (i) replaced the Mortgage Facility’s LIBOR-based Eurodollar reference interest rate option one-month Term SOFR (as defined in the Mortgage Facility); and (ii) made changes to the pricing grid for loans incurred under the Mortgage Facility, specifying credit spreads based on the Company’s Consolidated Total Lease Adjusted Leverage Ratio (as defined in the Mortgage Facility). As permitted by this amendment, the Company incurred a term loan under the Delayed Draw Credit Facility with a principal amount of $7.0 million on November 18, 2022. On March 22, 2024, we entered into an amendment to the Mortgage Facility (the “Fifth Mortgage Facility Amendment”) to conform to the terms of the Sixth Credit Facility Amendment including (i) adding certain specified share exchange transactions as permitted restricted payments and dispositions; (ii) removing the requirement that the Company maintain a specified consolidated liquidity ratio; and (iii) increasing the basket for quarterly dividends from $0.12 to $0.18 per share of qualified capital stock. As of March 31, 2024, we had $307.0 million of outstanding borrowings and $173.0 million available under the Mortgage Facility. Interest on the Mortgage Facility is paid monthly in arrears. Amortizing principal payments are scheduled to be $4.0 million per quarter from the quarter ending March 31, 2023 through the quarter ending December 31, 2024 and $6.0 million per quarter from the quarter ending March 31, 2025 through the quarter ending September 30, 2027 with the remaining balance due on the November 17, 2027 maturity date. The Company has the right to prepay outstanding principal at any time without premium or penalty provided the prepayment amount exceeds $0.5 million. For further discussion of the Mortgage Facility, see Note 6, “Long-Term Debt,” to the consolidated financial statements in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2023. |
Mortgage Notes Text Block [Text Block] | Mortgage Notes to Finance Companies As of March 31, 2024, the weighted-average interest rate of our other outstanding mortgage notes (excluding the Mortgage Facility) was 5.20% and the total outstanding mortgage principal balance of these notes (excluding the Mortgage Facility) was approximately $220.8 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 from 2024 to 2033. |
2020 Line of Credit Text Block [Text Block] |
Per Share Data and Stockholders
Per Share Data and Stockholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Per Share Data and Stockholders' Equity | Earnings Per Share – The calculation of diluted earnings per share considers the potential dilutive effect of outstanding restricted stock units, restricted stock and stock options granted under Sonic’s stock compensation plans (and any non-forfeitable dividends paid on such awards). |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Contingencies and Guarantees | Commitments and Contingencies Guarantees and Indemnification Obligations In accordance with the terms of our operating lease agreements, our 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, we have 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 our 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 the sublessee does not perform. In the event an assignee or a sublessee does not perform its obligations, Sonic remains liable for such obligations. In accordance with the terms of agreements entered into for the sale of our dealerships, we generally agree 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 our exposure with respect to environmental remediation is difficult to quantify, our maximum exposure associated with these general indemnifications was approximately $8.0 million as of both March 31, 2024 and December 31, 2023. These indemnifications typically expire within a period of one We also guarantee the floor plan commitments of our 50%-owned joint venture, and the amount of such guarantee at both March 31, 2024 and December 31, 2023 was approximately $4.3 million. Legal Matters 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 is unable to predict with certainty the outcome of any litigation, regulatory investigation or inquiry, in the opinion of management, Sonic does not believe it is reasonably possible that its current and threatened legal proceedings will have a material adverse effect on Sonic’s business, financial position or consolidated results of operations. Given the inherent unpredictability of these types of proceedings, however, it is possible that future adverse outcomes could have a material adverse effect on Sonic’s financial results. There were no significant liabilities recorded related to legal matters as of March 31, 2024 and December 31, 2023. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 8. Fair Value Measurements Assets and liabilities recorded at fair value in the accompanying unaudited condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023 were as follows: Fair Value Based on Significant Other Observable Inputs (Level 2) March 31, 2024 December 31, 2023 (In millions) Assets: Cash surrender value of life insurance policies (1) $ 43.9 $ 42.9 Interest rate caps designated as hedges (2) 1.1 1.0 Total assets $ 45.0 $ 43.9 (1) Included in other assets in the accompanying unaudited condensed consolidated balance sheets. (2) As of March 31, 2024, approximately $1.1 million was included in other current assets in the accompanying unaudited condensed consolidated balance sheets. As of December 31, 2023, approximately $1.0 million was included in other current assets in the accompanying unaudited condensed consolidated balance sheets. As of March 31, 2024 and December 31, 2023, 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. As of March 31, 2024 and December 31, 2023, the fair value and the carrying value of Sonic’s significant fixed rate long-term debt were as follows: March 31, 2024 December 31, 2023 Fair Value Carrying Value Fair Value Carrying Value (In millions) 4.875% Notes (1) $ 435.0 $ 500.0 $ 447.5 $ 500.0 4.625% Notes (1) $ 578.5 $ 650.0 $ 591.5 $ 650.0 Mortgage Notes (2) $ 147.1 $ 152.8 $ 156.6 $ 163.0 (1) As determined by market quotations from similar securities as of March 31, 2024 and December 31, 2023, respectively (Level 2). (2) As determined by the discounted cash flow method (Level 2). For further discussion of Sonic’s fair value measurements, see Note 11, “Fair Value Measurements,” to the consolidated financial statements in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2023. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) For further discussion of Sonic’s accumulated other comprehensive income (loss), see Note 13, “Accumulated Other Comprehensive Income (Loss),” to the consolidated financial statements in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2023. 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, 2023. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | 9. Segment Information As of March 31, 2024, Sonic had three operating segments: (1) retail automotive franchises that sell new vehicles and buy and sell used vehicles, sell replacement parts, perform vehicle maintenance, warranty and repair services, and arrange finance and insurance products (the “Franchised Dealerships Segment”); (2) pre-owned vehicle specialty retail locations that provide guests an opportunity to search our nationwide inventory, purchase a pre-owned vehicle, select finance and insurance products and sell their current vehicle to us (the “EchoPark Segment”); and (3) retail locations that sell new and used powersports vehicles, perform vehicle maintenance, warranty and repair services, and arrange finance and insurance products (the “Powersports Segment”). Sonic has determined that its operating segments also represent its reportable segments. The reportable 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 President; and (3) the Company’s Chief Financial Officer. Reportable segment financial information for the three months ended March 31, 2024 and 2023 were as follows: Three Months Ended March 31, 2024 2023 (In millions) Segment Revenues: Franchised Dealerships Segment revenues: Retail new vehicles $ 1,439.9 $ 1,421.0 Fleet new vehicles 19.6 18.8 Total new vehicles 1,459.5 1,439.8 Used vehicles 729.3 767.6 Wholesale vehicles 48.6 58.4 Parts, service and collision repair 439.9 423.8 Finance, insurance and other, net 119.6 117.1 Franchised Dealerships Segment revenues $ 2,796.9 $ 2,806.7 EchoPark Segment revenues: Retail new vehicles $ — $ 1.0 Used vehicles 482.9 572.5 Wholesale vehicles 28.6 27.0 Finance, insurance and other, net 47.9 50.0 EchoPark Segment revenues $ 559.4 $ 650.5 Powersports Segment revenues: Retail new vehicles $ 15.9 $ 20.8 Used vehicles 3.4 4.8 Wholesale vehicles 0.1 0.2 Parts, service and collision repair 6.8 6.7 Finance, insurance and other, net 1.5 1.5 Powersports Segment revenues $ 27.7 $ 34.0 Total consolidated revenues $ 3,384.0 $ 3,491.2 Three Months Ended March 31, 2024 2023 (In millions) Segment Income (Loss) (1): Franchised Dealerships Segment (2) $ 62.7 $ 109.8 EchoPark Segment (3) (2.9) (46.8) Powersports Segment (2.3) 0.6 Total segment income $ 57.5 $ 63.6 Impairment charges (4) (1.0) — Income before taxes $ 56.5 $ 63.6 (1) Segment income (loss) for each segment is defined as income (loss) before taxes and impairment charges. (2) For the three months ended March 31, 2024, amount includes approximately $2.2 million of pre-tax charges for severance and long-term compensation expense and approximately $1.0 million of pre-tax impairment charges related to property and equipment. (3) For the three months ended March 31, 2024, amount includes approximately $2.1 million of pre-tax charges for severance and long-term compensation expense and approximately $2.1 million of pre-tax charges related to closed store accrued expenses related to the indefinite suspension of operations at certain EchoPark locations. For the three months ended March 31, 2023, amount includes approximately $2.0 million of pre-tax charges for long-term compensation expense. (4) For the three months ended March 31, 2024, amount includes approximately $1.0 million of pre-tax property and equipment charges for the Franchised Dealerships Segment. Three Months Ended March 31, 2024 2023 (In millions) Segment Impairment Charges: Franchised Dealerships Segment $ 1.0 $ — EchoPark Segment — — Powersports Segment — — Total impairment charges $ 1.0 $ — Three Months Ended March 31, 2024 2023 (In millions) Segment Depreciation and Amortization: Franchised Dealerships Segment $ 29.8 $ 26.5 EchoPark Segment 5.5 7.0 Powersports Segment 1.0 0.8 Total depreciation and amortization $ 36.3 $ 34.3 Three Months Ended March 31, 2024 2023 (In millions) Segment Floor Plan Interest Expense: Franchised Dealerships Segment $ 16.0 $ 9.9 EchoPark Segment 3.8 4.6 Powersports Segment 0.5 0.1 Total floor plan interest expense $ 20.3 $ 14.6 Three Months Ended March 31, 2024 2023 (In millions) Segment Interest Expense, Other, Net: Franchised Dealerships Segment $ 27.8 $ 26.9 EchoPark Segment 0.7 0.9 Powersports Segment 0.5 0.6 Total interest expense, other, net $ 29.0 $ 28.4 Three Months Ended March 31, 2024 2023 (In millions) Segment Capital Expenditures: Franchised Dealerships Segment $ 43.0 $ 31.0 EchoPark Segment 0.4 5.7 Powersports Segment 0.4 0.5 Total capital expenditures $ 43.8 $ 37.2 March 31, 2024 December 31, 2023 (In millions) Segment Assets: Franchised Dealerships Segment $ 4,214.1 $ 4,110.8 EchoPark Segment 638.2 667.9 Powersports Segment 220.2 212.0 Corporate and other: Cash and cash equivalents 15.1 28.9 Floor plan deposit balance 320.0 345.0 Total assets $ 5,407.6 $ 5,364.6 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | 10. Subsequent Events Subsequent to March 31, 2024, we repurchased an additional [ ] shares of Class A Common Stock at an average price of [ ], resulting in current remaining share repurchase authorization of approximately [ ] million. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income (loss) | $ 42,000 | $ 47,700 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | true |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation – |
Principles of Consolidation | Principles of Consolidation – All of our dealership and non-dealership subsidiaries are wholly owned and consolidated in the accompanying unaudited 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 unaudited condensed consolidated financial statements. Certain amounts and percentages may not compute due to rounding. |
Per Share Data and Stockholders' Equity | Earnings Per Share – The calculation of diluted earnings per share considers the potential dilutive effect of outstanding restricted stock units, restricted stock and stock options granted under Sonic’s stock compensation plans (and any non-forfeitable dividends paid on such awards). |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Unusual Risks and Uncertainties | Recent Accounting Pronouncements – Please refer to Note 1, “Description of Business and Summary of Significant Accounting Policies,” to the consolidated financial statements in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2023 for further discussion of recent accounting pronouncements. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consist of the following: March 31, 2024 December 31, 2023 (In millions) New vehicles $ 938.5 $ 799.6 Used vehicles 481.5 505.7 Service loaners (1) 177.8 172.7 Parts, accessories and other 102.7 100.3 Inventories $ 1,700.5 $ 1,578.3 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment, Net | Property and equipment, net consists of the following: March 31, 2024 December 31, 2023 (In millions) Land $ 491.9 $ 493.0 Buildings and improvements 1,426.3 1,425.8 Furniture, fixtures and equipment 550.5 563.3 Construction in progress 83.5 61.4 Total, at cost 2,552.2 2,543.5 Less accumulated depreciation (929.2) (927.8) Subtotal 1,623.0 1,615.7 Less assets held for sale (1) (24.2) (14.7) Property and equipment, net $ 1,598.8 $ 1,601.0 |
Intangible Assets, Goodwill and
Intangible Assets, Goodwill and Other (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The changes in the carrying amount of franchise assets for the year ended December 31, 2023 and the three months ended March 31, 2024 were as follows: Franchised Dealerships Segment EchoPark Segment Powersports Segment Total (In millions) Balance at December 31, 2022 $ 371.7 $ 1.9 $ 23.1 $ 396.7 Additions through current year acquisitions — — 22.6 22.6 Reductions from dispositions — (1.9) — (1.9) Balance at December 31, 2023 $ 371.7 $ — $ 45.7 $ 417.4 Additions through current year acquisitions — — — — Reductions from dispositions — — — — Balance at March 31, 2024 $ 371.7 $ — $ 45.7 $ 417.4 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Instrument [Line Items] | |
Long-Term Debt | Long-term debt consists of the following: March 31, 2024 December 31, 2023 (In millions) Revolving Credit Facility (1) $ — $ — 4.625% Senior Notes due 2029 (the “4.625% Notes”) 650.0 650.0 4.875% Senior Notes due 2031 (the “4.875% Notes”) 500.0 500.0 Mortgage Facility (2) 307.0 311.0 Mortgage notes to finance companies - fixed rate, bearing interest from 2.05% to 7.03% 152.8 163.0 Mortgage notes to finance companies - variable rate, bearing interest at 1.50% to 2.90% above one-month or three-month SOFR 67.9 75.6 Subtotal $ 1,677.7 $ 1,699.6 Debt issuance costs (26.3) (23.0) Total debt 1,651.4 1,676.6 Less current maturities (68.0) (60.1) Long-term debt $ 1,583.4 $ 1,616.5 (1) The interest rate on the Revolving Credit Facility (as defined below) was 125 basis points above one-month Adjusted Term SOFR (as defined in the Credit Facilities) at March 31, 2024 and 125 basis points above one-month Term SOFR (as defined in the Credit Facilities) at December 31, 2023. (2) The interest rate on the Mortgage Facility (as defined below) was 150 basis points above one-month Adjusted Term SOFR at March 31, 2024 and 150 basis points above one-month Term SOFR at December 31, 2023. |
Financial Covenants Include Required Specified Ratios | Covenants The Credit Facilities and the Mortgage Facility contain certain negative covenants, including covenants which could restrict or prohibit indebtedness, liens, the payment of dividends and other restricted payments, capital expenditures and material dispositions and acquisitions of assets, as well as other customary covenants and default provisions. The Credit Facilities and the Mortgage Facility also contain limitations on our ability to pledge assets to third parties, subject to certain stated exceptions. We were in compliance with the financial covenants under the Credit Facilities and the Mortgage Facility as of March 31, 2024. Financial covenants include required specified ratios (as each is defined in the Credit Facilities and the Mortgage Facility) of: Covenant Minimum Consolidated Fixed Charge Coverage Ratio Maximum Consolidated Total Lease Adjusted Leverage Ratio Required ratio 1.20 5.75 March 31, 2024 actual 1.94 3.10 The Credit Facilities and the Mortgage Facility 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, we could be required to immediately repay all outstanding amounts under the Credit Facilities and the Mortgage Facility. After giving effect to the applicable restrictions on the payment of dividends under our debt agreements, as of March 31, 2024, we had approximately $264.1 million of net income and retained earnings free of such restrictions. We were in compliance with all restrictive covenants under our debt agreements as of March 31, 2024. In addition, many of our facility leases are governed by a guarantee agreement between the landlord and us that contains financial and operating covenants. The financial covenants under the guarantee agreement are identical to those under the Credit Facilities and the Mortgage Facility with the exception of one additional financial covenant related to the ratio of EBITDAR to Rent (as defined in the guarantee agreement) with a required ratio of no less than 1.50 to 1.00. As of March 31, 2024, the ratio was 11.70 to 1.00. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Recorded at Fair Value | Assets and liabilities recorded at fair value in the accompanying unaudited condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023 were as follows: Fair Value Based on Significant Other Observable Inputs (Level 2) March 31, 2024 December 31, 2023 (In millions) Assets: Cash surrender value of life insurance policies (1) $ 43.9 $ 42.9 Interest rate caps designated as hedges (2) 1.1 1.0 Total assets $ 45.0 $ 43.9 (1) Included in other assets in the accompanying unaudited condensed consolidated balance sheets. (2) |
Fair Value and Carrying Value of Significant Fixed Rate Long-Term Debt | As of March 31, 2024 and December 31, 2023, the fair value and the carrying value of Sonic’s significant fixed rate long-term debt were as follows: March 31, 2024 December 31, 2023 Fair Value Carrying Value Fair Value Carrying Value (In millions) 4.875% Notes (1) $ 435.0 $ 500.0 $ 447.5 $ 500.0 4.625% Notes (1) $ 578.5 $ 650.0 $ 591.5 $ 650.0 Mortgage Notes (2) $ 147.1 $ 152.8 $ 156.6 $ 163.0 (1) As determined by market quotations from similar securities as of March 31, 2024 and December 31, 2023, respectively (Level 2). (2) As determined by the discounted cash flow method (Level 2). |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income (Loss) | For further discussion of Sonic’s accumulated other comprehensive income (loss), see Note 13, “Accumulated Other Comprehensive Income (Loss),” to the consolidated financial statements in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2023. 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, 2023. |
Leases, Codification Topic 842
Leases, Codification Topic 842 (Tables) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Lease, Cost [Abstract] | |||
Finance Lease, Principal Payments | $ 2,100 | $ 2,200 | |
Leases [Abstract] | |||
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | 306,500 | $ 236,600 | |
Operating Lease, Liability, Current | 27,600 | 29,900 | |
Finance Lease, Liability, Current | 10,700 | 10,200 | |
Operating Lease, Liability, Noncurrent | 204,000 | 219,200 | |
Finance Lease, Liability, Noncurrent | $ 327,200 | $ 254,500 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Cumulative Effect of Adjustments for Adoption of ASC 606 (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenues: | |||
Revenues | $ 3,384,000,000 | $ 3,491,200,000 | |
Cost of Sales: | |||
Cost of Sales | (2,847,800,000) | (2,937,700,000) | |
Operating income (loss) | 106,700,000 | 106,400,000 | |
Assets: | |||
Receivables, net | 420,600,000 | $ 528,100,000 | |
Liabilities: | |||
Other accrued liabilities | 388,400,000 | 370,200,000 | |
Stockholders' Equity: | |||
Retained Earnings (Accumulated Deficit) | 1,270,400,000 | 1,238,600,000 | |
Parts, service and collision repair | |||
Revenues: | |||
Revenues | 446,700,000 | 430,500,000 | |
Cost of Sales: | |||
Cost of Sales | (222,800,000) | (217,600,000) | |
Finance, insurance and other, net | |||
Revenues: | |||
Revenues | 169,000,000 | $ 168,600,000 | |
ASU 2014-09 | Finance, insurance and other, net | |||
Assets: | |||
Contract assets | $ 3,700,000 | $ 31,800,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | $ 306,500 | $ 236,600 | |
Intangible assets | 417,400 | 417,400 | $ 396,700 |
Right-of-use asset | $ 207,100 | $ 222,600 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Activity (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Accounting Policies [Abstract] | ||
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | $ 306,500 | $ 236,600 |
Operating Lease, Right-of-Use Asset | $ 207,100 | $ 222,600 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | |||
Percentage of dealership that is accounted for under the equity method | 50% | ||
Effective tax rate from continuing operations | 27% | 25% | |
Income benefit | $ (15,500) | $ (15,900) | |
Impairment charges | $ 1,000 | $ 0 | |
Dealership | |||
Schedule of Equity Method Investments [Line Items] | |||
Percentage of dealership that is accounted for under the equity method | 50% | ||
ASU 2014-09 | Finance, insurance and other, net | |||
Schedule of Equity Method Investments [Line Items] | |||
Contract assets | $ 3,700 | $ 31,800 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Income Tax Disclosure [Abstract] | |
Contract with Customer, Asset, after Allowance for Credit Loss, Noncurrent | $ 19,800 |
Business Acquisitions and Dispo
Business Acquisitions and Dispositions - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 USD ($) retail_Units | Mar. 31, 2023 retail_Units | Dec. 31, 2023 USD ($) | |
Luxury Dealership [Domain] | |||
Business Acquisition [Line Items] | |||
Number of franchises disposed | retail_Units | 2 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | $ 100 | ||
Payments to Acquire Businesses, Gross | 75,100 | ||
PY Acq GW Allocations Fdealer | 0 | $ 9,800 | |
PY Acq GW Allocations Powersports | 0 | $ 2,900 | |
Stand-alone pre-owned vehicle business | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 11,100 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 700 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 22,600 | ||
Powersports Segment | |||
Business Acquisition [Line Items] | |||
Number of acquired franchises | retail_Units | 5 | ||
Number of Powersports Stores Acquired | retail_Units | 1 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Land | 29,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ (300) |
Business Acquisitions and Dis_2
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income (loss) from operations | $ (4,900) | $ (13,500) |
Gain (loss) on disposal | (1,700) | 0 |
Lease exit accrual adjustments and charges | (2,400) | 1,700 |
Pre-tax income (loss) | (4,200) | (15,200) |
Total revenues | $ 13,200 | $ 203,200 |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
New vehicles | $ 938,500 | $ 799,600 |
Used vehicles | 481,500 | 505,700 |
Service loaners | 177,800 | 172,700 |
Parts, accessories and other | 102,700 | 100,300 |
Net inventories | 1,700,500 | 1,578,300 |
Service Loaner Inventory (Directly Leased from Manufacturer) | $ 31,600 | $ 22,700 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Less accumulated depreciation | $ (929,200) | $ (927,800) |
Subtotal | 1,623,000 | 1,615,700 |
Less assets held for sale | (24,200) | (14,700) |
Property and equipment, net | 1,598,800 | 1,601,000 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 491,900 | 493,000 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 1,426,300 | 1,425,800 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 550,500 | 563,300 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 83,500 | 61,400 |
Property, Plant and Equipment, Net, Excluding Capital Leased Assets | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 2,552,200 | $ 2,543,500 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | ||
Capital expenditures | $ 43,800 | $ 37,200 |
Impairment charges | 1,000 | $ 0 |
Impairment of Long-Lived Assets to be Disposed of | 1,000 | |
Property, Plant and Equipment [Line Items] | ||
Impairment of Long-Lived Assets to be Disposed of | $ 1,000 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill - Franchise Segment | $ 229,800 | $ 229,800 | $ 221,800 | |
Goodwill - Preowned Segment | 0 | 0 | 0 | |
Goodwill - Powersports Segment | 24,000 | 24,000 | 9,200 | |
GW Accm Amort Fdealer | 1,100,000 | |||
GW Amm Amort Preowned | 202,900 | |||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment charges | 1,000 | $ 0 | ||
Goodwill [Line Items] | ||||
Goodwill - Preowned Segment | 0 | 0 | 0 | |
Goodwill and Intangible Asset Impairment | 0 | (1,800) | ||
Goodwill | 253,800 | 253,800 | 231,000 | |
Goodwill and Intangible Assets Acquired | 0 | 11,900 | ||
Goodwill - Franchise Segment | 229,800 | 229,800 | 221,800 | |
Goodwill - Powersports Segment | 24,000 | 24,000 | 9,200 | |
PY Acq GW Allocations | 0 | 12,700 | ||
PY Acq GW Allocations Fdealer | 0 | 9,800 | ||
PY Acq GW Allocations Preowned | 0 | 0 | ||
PY Acq GW Allocations Powersports | 0 | 2,900 | ||
Goodwill and Intangible Assets Acquired Fdealer | 0 | 0 | ||
Goodwill and Intangible Assets Acquired Preowned | 0 | 0 | ||
Goodwill and Intangible Assets Acquired Powersports | 0 | 11,900 | ||
GW Asset Impairment Fdealer | 0 | (1,800) | ||
GW Asset Impairment Preowned | 0 | 0 | ||
GW Asset Impairment Powersports | 0 | 0 | ||
Indefinite-Lived Intangible Assets [Line Items] | ||||
Franchise Assets - Franchised | 371,700 | 371,700 | 371,700 | |
Intangible Assets Preowned | 0 | 0 | 1,900 | |
Intangible Assets - Powersports | 45,700 | 45,700 | 23,100 | |
Franchise Assets - Assets Acquired Franchised | 0 | 0 | ||
Intangible Assets - Assets Acquired Preowned | 0 | 0 | ||
Intangible Assets - Assets Acquired Powersports | 0 | 22,600 | ||
Indefinite-Lived Intangible Assets Acquired | 0 | 22,600 | ||
Franchise Assets - reductions from disp fdealer | 0 | 0 | ||
Intangible Assets - reduction from dispositions preowned | 0 | (1,900) | ||
Intangible Assets - Reductions from dispositions powersports | 0 | 0 | ||
Indefinite-Lived Intangible Assets, Written off Related to Sale of Business Unit | 0 | 1,900 | ||
Goodwill and Intangible Asset Impairment | 0 | (1,800) | ||
Other Intangible Assets, net | 417,400 | $ 417,400 | $ 396,700 | |
Powersports Segment | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment charges | $ 0 | $ 0 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Oct. 13, 2021 | Mar. 10, 2017 |
Debt Instrument [Line Items] | |||||
Subtotal | $ 1,677,700 | $ 1,699,600 | |||
Debt issuance costs | (26,300) | (23,000) | |||
Total debt | 1,651,400 | 1,676,600 | |||
Less current maturities | (68,000) | (60,100) | |||
Long-term debt | 1,583,400 | 1,616,500 | |||
Mortgage notes | |||||
Debt Instrument [Line Items] | |||||
Mortgage notes to finance companies - fixed rate, bearing interest from 3.51% to 7.03% | 152,800 | 163,000 | |||
Mortgage notes to finance companies - variable rate, bearing interest at 1.50 to 2.90 percentage points above one-month or three-month LIBOR | 67,900 | 75,600 | |||
Subtotal | $ 220,800 | ||||
Mortgage notes | Minimum | |||||
Debt Instrument [Line Items] | |||||
Mortgage notes to finance companies-fixed rate, percentage | 3.51% | ||||
Mortgage notes to finance companies-variable rate, percentage | 1.50% | ||||
Mortgage notes | Maximum | |||||
Debt Instrument [Line Items] | |||||
Mortgage notes to finance companies-fixed rate, percentage | 7.03% | ||||
Mortgage notes to finance companies-variable rate, percentage | 2.90% | ||||
TwoThousandSixteenRevolvingCreditFacilityMember | |||||
Debt Instrument [Line Items] | |||||
2016 Revolving Credit Facility | $ 0 | $ 0 | |||
Interest rate | 2.50% | 2.25% | |||
5.0% Senior Subordinate Notes due 2023 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 5% | ||||
6.125% Senior Subordinate Notes due 2027 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 6.125% | 6.125% | 6.125% | ||
2019 Mortgage Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior Subordinated Notes | $ 307,000 | $ 311,000 | |||
Stated interest rate | 1.25% | 2.50% | |||
4.625% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior Subordinated Notes | $ 650,000 | 650,000 | |||
4.875% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior Subordinated Notes | 500,000 | 500,000 | |||
Total debt | $ 500,000 | $ 500,000 | |||
Stated interest rate | 4.875% |
Long-Term Debt - Debt Redemptio
Long-Term Debt - Debt Redemption (Details) - 6.125% Notes | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Period One | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption percentage of principal amount | 103.063% | 26,320,000,000% |
Period Two | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption percentage of principal amount | 102.042% | |
Period Three | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption percentage of principal amount | 101.021% | |
Period Four | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption percentage of principal amount | 100% |
Long-Term Debt - 2016 Credit Fa
Long-Term Debt - 2016 Credit Facilities (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
TwoThousandSixteenRevolvingCreditFacilityMember | ||||
Line of Credit Facility [Line Items] | ||||
2016 Revolving Credit Facility | $ 0 | $ 0 | ||
Revolving Credit Facility | Two Thousand Twenty Vehicle Floor Plan Facility | ||||
Line of Credit Facility [Line Items] | ||||
Current borrowing capacity | 2,600,000,000 | |||
Maximum borrowing capacity | $ 2,400,000,000 | $ 2,900,000,000 | ||
Maximum aggregate commitments allocated to commitments under the 2016 Used Vehicle Floor Plan Facility | 40% | |||
Revolving Credit Facility | TwoThousandTwentyRevolvingCreditFacility | ||||
Line of Credit Facility [Line Items] | ||||
Current borrowing capacity | $ 350,000,000 | |||
Maximum borrowing capacity | 450,000,000 | $ 400,000,000 | ||
Borrowing base | 350,000,000 | |||
2016 Revolving Credit Facility | 0 | |||
Letters of credit outstanding amount | 11,500,000 | |||
Borrowing availability amount | $ 338,500,000 | |||
Maximum dividend (usd per share) | $ 0.18 | $ 0.12 | ||
LineofCreditFacilityMinimumCommitment | $ 50,000,000 | |||
Debt Instrument, Basis Spread on Variable Rate | 1,000% | |||
Revolving Credit Facility | New Vehicle Floorplan Facility (Commitments) | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 1,350,000,000 | |||
Revolving Credit Facility | Used Vehicle Floor Plan Facility (Commitments) | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 700,000,000 |
Long-Term Debt - Notes Narrativ
Long-Term Debt - Notes Narrative (Details) | 3 Months Ended | |||||||
Mar. 10, 2017 USD ($) | Mar. 31, 2024 USD ($) $ / shares | Mar. 31, 2023 | Mar. 31, 2020 Location | Sep. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | Oct. 13, 2021 USD ($) | Jun. 30, 2020 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Debt Instrument Percentage Of Outstanding Principal Amount Redeemable Upon Event Of Default | 25% | |||||||
Debt outstanding | $ 1,677,700,000 | $ 1,699,600,000 | ||||||
Maximum Borrowing 2019 Mortgage Facility | $ 500,000,000 | |||||||
Mortgage notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Mortgage financing aggregate | $ 0 | |||||||
Number of operating locations related to mortgage financing | Location | 0 | |||||||
Debt weighted average interest rate on note | 5.20% | |||||||
Debt outstanding | $ 220,800,000 | |||||||
5.0% Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 5% | |||||||
6.125% Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes Redemption Price Percentage Of Par Value Due To Change Of Control | 101% | |||||||
Stated interest rate | 6.125% | 6.125% | 6.125% | |||||
Principal amount | $ 250,000,000 | $ 250,000,000 | ||||||
Notes issued, percent of principal | 100% | |||||||
Maximum dividend (usd per share) | $ / shares | $ 0.12 | |||||||
6.125% Notes | Period One | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption percentage of principal amount | 103.063% | 26,320,000,000% | ||||||
Gain (Loss) on Extinguishment of Debt | $ 13,200,000 | |||||||
2019 Mortgage Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 2.50% | 1.25% | ||||||
Maximum dividend (usd per share) | $ / shares | $ 0.10 | |||||||
Long Term Debt Prepayment | $ 500,000 | |||||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 173,000,000 | |||||||
4.875% Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 4.875% | |||||||
4.625% Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 4.625% | |||||||
Minimum | 5.0% Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument Other Outstanding Indebtedness In Excess | $ 50,000,000 | |||||||
Minimum | 2019 Mortgage Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |||||||
Debt Instrument, Basis Spread LIBOR | 1.25% | |||||||
Maximum | 2019 Mortgage Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||||||
Debt Instrument, Basis Spread LIBOR | 2.25% |
Long-Term Debt - Covenants (Det
Long-Term Debt - Covenants (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Line of Credit Facility [Line Items] | |
Minimum Consolidated Fixed Charge Coverage Ratio | 194% |
Maximum Consolidated Total Lease Adjusted Leverage Ratio | 310% |
2016 Credit Facilities | |
Line of Credit Facility [Line Items] | |
Net income and retained earnings free of restrictions | $ 264.1 |
Minimum EBTDAR to rent ratio | 1,170% |
Required ratio | |
Line of Credit Facility [Line Items] | |
Minimum Consolidated Fixed Charge Coverage Ratio | 120% |
Maximum Consolidated Total Lease Adjusted Leverage Ratio | 575% |
Required ratio | 2016 Credit Facilities | |
Line of Credit Facility [Line Items] | |
Minimum EBTDAR to rent ratio | 150% |
Long-Term Debt - Derivative Ins
Long-Term Debt - Derivative Instruments and Hedging Activities (Details) - USD ($) | 3 Months Ended | |||||
Mar. 09, 2018 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2019 | Jun. 30, 2020 | Dec. 31, 2018 | |
Derivatives, Fair Value [Line Items] | ||||||
Incremental interest expense | $ 0 | $ 300,000 | $ 100,000 | |||
Net benefit expected to be reclassified | $ 0 | |||||
Interest rate swap and interest rate cap | Derivative instruments and hedging activities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Fair value of derivative | $ 0 | |||||
Net cash proceeds | $ 4,800,000 | |||||
Interest rate swap and interest rate cap | Derivative instruments and hedging activities | Other assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative asset, fair value of interest rate swap and cap positions | 0 | |||||
Interest rate swap and interest rate cap | Derivative instruments and hedging activities | Other current assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative asset, fair value of interest rate swap and cap positions | ||||||
Interest rate swap | Derivative instruments and hedging activities | Other current assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability, fair value of interest rate swap and cap positions | 100,000 | |||||
Interest rate swap | Derivative instruments and hedging activities | Other accrued liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability, fair value of interest rate swap and cap positions | 1,000,000 | |||||
Interest rate swap | Derivative instruments and hedging activities | Other long-term liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability, fair value of interest rate swap and cap positions | $ 300,000 |
Long-Term Debt - 2019 Mortgage
Long-Term Debt - 2019 Mortgage Facility (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 30 Months Ended | |||
Sep. 30, 2024 | Mar. 31, 2024 | Sep. 30, 2027 | Oct. 13, 2021 | Mar. 10, 2017 | |
Debt Instrument [Line Items] | |||||
Maximum Borrowing 2019 Mortgage Facility | $ 500,000 | ||||
Repayments of Debt | $ 4,000 | $ 6,000 | |||
6.125% Notes | |||||
Debt Instrument [Line Items] | |||||
Maximum dividend (usd per share) | $ 0.12 | ||||
Stated interest rate | 6.125% | 6.125% | 6.125% | ||
2019 Mortgage Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum dividend (usd per share) | $ 0.10 | ||||
Term Loan, Principal Amount | 320,000 | ||||
Prior Term Loan, Principal Amount | 77,600 | ||||
Delayed Draw-Term Loan, Aggregate Principal | 85,000 | ||||
Revolving Loan, Aggregate Principal | 95,000 | ||||
Outstanding Balance, Delayed Draw Credit Facility | 7,000 | ||||
2019 Mortgage Facility Outstanding | $ 307,000 | ||||
Stated interest rate | 1.25% | 2.50% | |||
Debt Instrument, Interest Rate, Increase (Decrease) | 1.875% | ||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 173,000 |
Long-Term Debt (Details)
Long-Term Debt (Details) - TwoThousandTwentyRevolvingCreditFacility - Revolving Credit Facility | Mar. 31, 2024 USD ($) |
Line of Credit Facility [Line Items] | |
2016 Revolving Credit Facility | $ 0 |
Borrowing availability amount | $ 338,500,000 |
Per Share Data and Stockholde_2
Per Share Data and Stockholders' Equity - Dilutive Effect on Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Weighted Average Shares | ||
Weighted average common shares outstanding | 34,000 | 35,900 |
Diluted earnings (loss) (shares) | 34,900 | 36,900 |
Net Income (Loss) | ||
Earnings (loss) | $ 42,000 | $ 47,700 |
Basic earnings (loss) per share (usd per share) | $ 1.24 | $ 1.33 |
Effect of dilutive securities: | ||
Earnings (loss) per common share (usd per share) | $ 1.20 | $ 1.29 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Other Commitments [Line Items] | ||
Maximum exposure associated with general indemnifications | $ 8,000 | |
General indemnifications minimum expiration period | 1 year | |
General indemnifications maximum expiration period | 3 years | |
Percentage of dealership that is accounted for under the equity method | 50% | |
Contingent liability reserve balance after reduction | $ 4,300 | |
Other accrued liabilities | ||
Other Commitments [Line Items] | ||
Amount reserved for pending proceedings | 400 | |
Other long-term liabilities | ||
Other Commitments [Line Items] | ||
Amount reserved for pending proceedings | $ 300 | $ 300 |
Accrued Liabilities | ||
Other Commitments [Line Items] | ||
Amount reserved for pending proceedings | $ 400 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Recorded at Fair Value (Details) - Fair Value Based on Significant Other Observable Inputs (Level 2) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets: | ||
Cash surrender value of life insurance policies | $ 43,900 | $ 42,900 |
Cash flow swaps and interest rate caps designated as hedges | 1,100 | 1,000 |
Total assets | 45,000 | 43,900 |
Other current assets | ||
Assets: | ||
Cash flow swaps and interest rate caps designated as hedges | $ 1,100 | $ 1,000 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value and Carrying Value of Significant Fixed Rate Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Oct. 13, 2021 | Mar. 10, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Carrying Value | $ 1,651,400 | $ 1,676,600 | ||
Mortgage Notes | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair Value | 147,100 | 156,600 | ||
Carrying Value | $ 152,800 | 163,000 | ||
5.0% Notes | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Stated interest rate | 5% | |||
6.125% Notes | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Stated interest rate | 6.125% | 6.125% | 6.125% | |
4.875% Senior Notes [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair Value | $ 435,000 | 447,500 | ||
Carrying Value | $ 500,000 | 500,000 | ||
Stated interest rate | 4.875% | |||
4.625% Notes [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair Value | $ 578,500 | 591,500 | ||
Carrying Value | $ 650,000 | $ 650,000 | ||
Stated interest rate | 4.625% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 891,900 | $ 895,200 |
Other comprehensive income (loss) | 500 | (100) |
Ending balance | 904,400 | 854,800 |
Total Accumulated Other Comprehensive Income (Loss) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 1,600 | 1,600 |
Other comprehensive income (loss) | 500 | (100) |
Ending balance | $ 2,100 | $ 1,500 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2024 USD ($) Segment | Mar. 31, 2023 USD ($) | |
Segment Reporting [Abstract] | ||
Number of operating segments | Segment | 3 | |
Impairment charges | $ 1,000,000 | $ 0 |
Segment Reporting Information [Line Items] | ||
Revenues | 3,384,000,000 | 3,491,200,000 |
Retail New Vehicles [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,455,800,000 | 1,442,800,000 |
Fleet New Vehicles [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 19,600,000 | 18,800,000 |
New vehicles | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,475,400,000 | 1,461,600,000 |
Used vehicles | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,215,600,000 | 1,344,900,000 |
Wholesale vehicles | ||
Segment Reporting Information [Line Items] | ||
Revenues | 77,300,000 | 85,600,000 |
Total vehicles | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,768,300,000 | 2,892,100,000 |
Parts, service and collision repair | ||
Segment Reporting Information [Line Items] | ||
Revenues | 446,700,000 | 430,500,000 |
Finance, insurance and other, net | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 169,000,000 | $ 168,600,000 |
Segment Information - Summary o
Segment Information - Summary of Reportable Operating Segment (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Revenues: | ||||
Total consolidated revenues | $ 3,384,000,000 | $ 3,491,200,000 | ||
Segment income (loss): | ||||
Segment income (loss) | 106,700,000 | 106,400,000 | ||
Interest expense, other, net | (29,000,000) | (28,400,000) | ||
Other income (expense), net | 100,000 | 200,000 | ||
Income (loss) from continuing operations before taxes | 57,500,000 | 63,600,000 | ||
Closed Store Accrued Expenses | 2,100,000 | |||
Impairment charges | 1,000,000 | 0 | ||
FloorPlanDepositBalance | 320,000,000 | $ 345,000,000 | ||
Impairment of Long-Lived Assets to be Disposed of | 1,000,000 | |||
Depreciation, Depletion and Amortization | 36,300,000 | 34,300,000 | ||
FloorPlanInterestExpense | 20,300,000 | 14,600,000 | ||
Interest Expense, Other | 29,000,000 | 28,400,000 | ||
Payments to Acquire Property, Plant, and Equipment | 43,800,000 | 37,200,000 | ||
Cash and cash equivalents | 15,100,000 | 160,200,000 | 28,900,000 | $ 229,200,000 |
Assets | 5,407,600,000 | 5,364,600,000 | ||
Powersports Used Vehicle Revenue | 3,400,000 | 4,800,000 | ||
Powersports Wholesale Vehicle Revenue | 100,000 | 200,000 | ||
Powersports Fixed Ops Revenue | 6,800,000 | 6,700,000 | ||
Powersports F&I Revenue | 1,500,000 | 1,500,000 | ||
Powersports Segment Revenue | 27,700,000 | 34,000,000 | ||
Franchised Dealerships Segment | ||||
Revenues: | ||||
Total consolidated revenues | 2,796,900,000 | 2,806,700,000 | ||
Segment income (loss): | ||||
Interest expense, other, net | (27,800,000) | (26,900,000) | ||
Impairment charges | 1,000,000 | 0 | ||
Excluded non-recurring compensation-related charges | 2,200,000 | |||
Depreciation, Depletion and Amortization | 29,800,000 | 26,500,000 | ||
FloorPlanInterestExpense | 16,000,000 | 9,900,000 | ||
Interest Expense, Other | 27,800,000 | 26,900,000 | ||
Payments to Acquire Property, Plant, and Equipment | 43,000,000 | 31,000,000 | ||
Assets | 4,214,100,000 | 4,110,800,000 | ||
Excluded non-recurring compensation-related charges | 2,200,000 | |||
EchoPark Segment | ||||
Revenues: | ||||
Total consolidated revenues | 559,400,000 | 650,500,000 | ||
Segment income (loss): | ||||
Interest expense, other, net | (700,000) | (900,000) | ||
Impairment charges | 0 | 0 | ||
Excluded non-recurring compensation-related charges | 2,100,000 | 2,000,000 | ||
Depreciation, Depletion and Amortization | 5,500,000 | 7,000,000 | ||
FloorPlanInterestExpense | 3,800,000 | 4,600,000 | ||
Interest Expense, Other | 700,000 | 900,000 | ||
Payments to Acquire Property, Plant, and Equipment | 400,000 | 5,700,000 | ||
Assets | 638,200,000 | 667,900,000 | ||
Excluded non-recurring compensation-related charges | 2,100,000 | 2,000,000 | ||
Powersports Segment | ||||
Segment income (loss): | ||||
Interest expense, other, net | (500,000) | (600,000) | ||
Impairment charges | 0 | 0 | ||
Depreciation, Depletion and Amortization | 1,000,000 | 800,000 | ||
FloorPlanInterestExpense | 500,000 | 100,000 | ||
Interest Expense, Other | 500,000 | 600,000 | ||
Payments to Acquire Property, Plant, and Equipment | 400,000 | 500,000 | ||
Assets | 220,200,000 | $ 212,000,000 | ||
Operating segments | ||||
Segment income (loss): | ||||
Segment income (loss) | 57,500,000 | 63,600,000 | ||
Operating segments | Franchised Dealerships Segment | ||||
Segment income (loss): | ||||
Segment income (loss) | 62,700,000 | 109,800,000 | ||
Operating segments | EchoPark Segment | ||||
Segment income (loss): | ||||
Segment income (loss) | (2,900,000) | (46,800,000) | ||
Operating segments | Powersports Segment | ||||
Segment income (loss): | ||||
Segment income (loss) | (2,300,000) | 600,000 | ||
Reconciling items | ||||
Segment income (loss): | ||||
Other income (expense), net | 56,500,000 | 63,600,000 | ||
Impairment charges | (1,000,000) | 0 | ||
New vehicles | ||||
Revenues: | ||||
Total consolidated revenues | 1,475,400,000 | 1,461,600,000 | ||
New vehicles | Franchised Dealerships Segment | ||||
Revenues: | ||||
Total consolidated revenues | 1,459,500,000 | 1,439,800,000 | ||
Used vehicles | ||||
Revenues: | ||||
Total consolidated revenues | 1,215,600,000 | 1,344,900,000 | ||
Used vehicles | Franchised Dealerships Segment | ||||
Revenues: | ||||
Total consolidated revenues | 729,300,000 | 767,600,000 | ||
Used vehicles | EchoPark Segment | ||||
Revenues: | ||||
Total consolidated revenues | 482,900,000 | 572,500,000 | ||
Wholesale vehicles | ||||
Revenues: | ||||
Total consolidated revenues | 77,300,000 | 85,600,000 | ||
Wholesale vehicles | Franchised Dealerships Segment | ||||
Revenues: | ||||
Total consolidated revenues | 48,600,000 | 58,400,000 | ||
Wholesale vehicles | EchoPark Segment | ||||
Revenues: | ||||
Total consolidated revenues | 28,600,000 | 27,000,000 | ||
Parts, service and collision repair | ||||
Revenues: | ||||
Total consolidated revenues | 446,700,000 | 430,500,000 | ||
Parts, service and collision repair | Franchised Dealerships Segment | ||||
Revenues: | ||||
Total consolidated revenues | 439,900,000 | 423,800,000 | ||
Finance, insurance and other, net | ||||
Revenues: | ||||
Total consolidated revenues | 169,000,000 | 168,600,000 | ||
Finance, insurance and other, net | Franchised Dealerships Segment | ||||
Revenues: | ||||
Total consolidated revenues | 119,600,000 | 117,100,000 | ||
Finance, insurance and other, net | EchoPark Segment | ||||
Revenues: | ||||
Total consolidated revenues | 47,900,000 | 50,000,000 | ||
NewVehiclesMember | EchoPark Segment | ||||
Revenues: | ||||
Total consolidated revenues | 0 | 1,000,000 | ||
Retail New Vehicles [Member] | ||||
Revenues: | ||||
Total consolidated revenues | 1,455,800,000 | 1,442,800,000 | ||
Retail New Vehicles [Member] | Franchised Dealerships Segment | ||||
Revenues: | ||||
Total consolidated revenues | 1,439,900,000 | 1,421,000,000 | ||
Fleet New Vehicles [Member] | ||||
Revenues: | ||||
Total consolidated revenues | 19,600,000 | 18,800,000 | ||
Fleet New Vehicles [Member] | Franchised Dealerships Segment | ||||
Revenues: | ||||
Total consolidated revenues | 19,600,000 | 18,800,000 | ||
Retail New Vehcile | ||||
Revenues: | ||||
Powersports New Vehicle Revenue | $ 15,900,000 | $ 20,800,000 |
Leases, Codification Topic 84_2
Leases, Codification Topic 842 (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | $ 306,500 | $ 236,600 |
Right-of-use asset | $ 207,100 | $ 222,600 |
Business Combinations (Details)
Business Combinations (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) retail_Units | Mar. 31, 2023 USD ($) retail_Units | |
Asset Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | $ 100 | |
Impairment charges | 1,000 | $ 0 |
Payments to Acquire Businesses, Gross | 75,100 | |
Purchase of businesses, net of cash acquired | $ 0 | $ 75,100 |
Northwest Motorsport Segment [Abstract] | ||
Asset Acquisition [Line Items] | ||
NumberofPreownedStoresDisposed | retail_Units | 7 | |
Luxury Dealership [Domain] | ||
Business Combinations [Abstract] | ||
Number of franchises disposed | retail_Units | 2 | |
Asset Acquisition [Line Items] | ||
Number of franchises disposed | retail_Units | 2 | |
Stand-alone pre-owned vehicle business | ||
Asset Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | $ 11,100 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 22,600 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 700 | |
Goodwill, Acquired During Period | 11,900 | |
Powersports Segment | ||
Asset Acquisition [Line Items] | ||
Number of acquired franchises | retail_Units | 5 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Land | 29,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ (300) | |
Number of Powersports Stores Acquired | retail_Units | 1 |
Subsequent Events (Details)
Subsequent Events (Details) - 6.125% Notes - USD ($) | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Oct. 13, 2021 | Mar. 10, 2017 | |
Subsequent Events [Abstract] | ||||
Principal amount | $ 250,000,000 | $ 250,000,000 | ||
Stated interest rate | 6.125% | 6.125% | 6.125% | |
Subsequent Event [Line Items] | ||||
Principal amount | $ 250,000,000 | $ 250,000,000 | ||
Stated interest rate | 6.125% | 6.125% | 6.125% | |
Period One | ||||
Subsequent Events [Abstract] | ||||
Redemption percentage of principal amount | 103.063% | 26,320,000,000% | ||
Gain (Loss) on Extinguishment of Debt | $ 13,200,000 | |||
Subsequent Event [Line Items] | ||||
Gain (Loss) on Extinguishment of Debt | $ 13,200,000 |