Slide 1: Q1 2016 Investor Presentation
Q1 2016 Investor Presentation April 26, 2016 Exhibit 99.2
Slide 2: Forward-Looking Statements
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 bu
Slide 3: Content
CONTENT STRATEGIC FOCUS FINANCIAL REVIEW OPERATIONS REVIEW SUMMARY & OUTLOOK
Slide 4: Strategic Focus
STRATEGIC FOCUS Growth EchoPark® One Sonic-One Experience Acquisitions & Open Points Own Our Properties Return Capital to Shareholders Share Repurchases Dividends
Slide 5: Strategic Focus: One Sonic-One Experience (OSOE)
STRATEGIC FOCUS ONE SONIC-ONE EXPERIENCE (OSOE) Goals 1 Associate, 1 Price, 1 Hour Improve Transparency; Increase Trust Operational Efficiencies Grow Market Share Feed Fixed Operations Technology Being Introduced into Additional Markets (Charlotte was Pilot) CRM, Desking & Appraisal
Slide 6: Strategic Focus: EchoPark
STRATEGIC FOCUS EchoPark® Three Locations Open In Denver Thornton Hub Centennial Highlands Ranch Locations to Open in Denver Market in First Half of 2016 Dakota Ridge Stapleton One Additional Denver Market Locations by End of 2016 Acquiring Property in the Texas and Carolinas Markets Expect openings
Slide 7: Strategic Focus: Acquisitions & Open Points
STRATEGIC FOCUS ACQUISITIONS & OPEN POINTS Open Points Mercedes Benz in Dallas Market Operational in 2016 Audi in Pensacola Market Operational in 2016 Nissan in TN Market Operational in late 2016 / early 2017 Exploring Acquisition and Open Point Opportunities in Other Markets
Slide 8: Strategic Focus: Own Our Properties
STRATEGIC FOCUS OWN OUR PROPERTIES % of Properties Owned
Slide 9: Strategic Focus: Return Capital to Shareholders
Acquired 7.5% of OS in Q1 New Share Count = 46.2M Down from High of 53.2M (Dec 2012) Q1 Accretion = 7% STRATEGIC FOCUS RETURN CAPITAL TO SHAREHOLDERS (amounts in thousands, except per share data) Shares $/Share $ Availability Q1 Activity 4,102 $18.14 $74,414 $70,589 Q2 Activity 363 $17.62 $6,398 $64
Slide 10: Outstanding Share Count
OUTSTANDING SHARE COUNT (in millions) Note – Balances are amounts outstanding at the end of the applicable period. These amounts exclude the effect of share dilution from convertible notes and equity grants outstanding. STRATEGIC FOCUS RETURN CAPITAL TO SHAREHOLDERS
Slide 11: Q1 2016 Financial Review
Q1 2016 FINANCIAL REVIEW
Slide 12: Franchised Segment
Q1 2016 FINANCIAL REVIEW FRANCHISED SEGMENT
Slide 13: Franchised Segment Q1 2016 Results
FRANCHISED SEGMENT Q1 2016 RESULTS – Q1 2016 and Q1 2015 are adjusted – See appendix for reconciliation to GAAP amounts Note – Continuing operations includes results of sold stores after March 31, 2014. B/(W) than Q1 2015 (1) (amounts in millions, except per share data) Q1 2016 (1) $ % Revenue $2,21
Slide 14: EchoPark Segment
Q1 2016 FINANCIAL REVIEW ECHOPARK® SEGMENT
Slide 15: EchoPark Segment Q1 2016 Results
NM – Not Meaningful ECHOPARK® SEGMENT Q1 2016 RESULTS – Q1 2015 is adjusted – See appendix for reconciliation to GAAP amounts B/(W) than Q1 2015 (1) (amounts in millions, except per share, unit and per unit data) Q1 2016 $ % Revenue $24.040798879999997 $8.3561191099999998 NM Gross Profit $3.24730076
Slide 16: Total Enterprise
Q1 2016 FINANCIAL REVIEW TOTAL ENTERPRISE
Slide 17: Consolidated Q1 2016 Results
– Q1 2016 and Q1 2015 are adjusted – See appendix for reconciliation to GAAP amounts Note – Continuing operations includes results of sold stores after March 31, 2014. CONSOLIDATED Q1 2016 RESULTS Depreciation Up = $2.1M New Floorplan Up = $1.7M B/(W) than Q1 2015 (1) (amounts in millions, except pe
Slide 18: Q1 2016 Revenue & Gross Profit
Q1 2016 REVENUE & GROSS PROFIT Strong Growth in Fixed and F&I Offset by Reduction in New Units and Lower GPU B/(W) than Q1 2015 (amounts in millions, except per share data) Q1 2016 $ % New Retail Revenue $1,149.4367360000001 $-40.77852289000014 -3.426146874308% Used Retail Revenue $598.3545179899999
Slide 19: Q1 2016 Adjusted SG&A to Gross
Q1 2016 ADJUSTED SG&A TO GROSS 80.6% 80.6% – Q1 2016 and Q1 2015 are adjusted – See appendix for reconciliation to GAAP amounts (1) (1)
Slide 20: Q1 2016 Adjusted SG&A to Gross
Q1 2016 ADJUSTED SG&A TO GROSS – Q1 2016 and Q1 2015 are adjusted – See appendix for reconciliation to GAAP amounts (1) (1)
Slide 21: Interest Expense Q1 2016
INTEREST EXPENSE Q1 2016 Floor plan Increase Due to Higher Inventory Balances B/(W) than Q1 2015 (amounts in millions, except per share data) Q1 2016 $ % Floor Plan Interest Expense $6.43546101 $-1.6574960899999995 -0.3469041982836491 Interest Expense, Other $12.339002719999998 $0.8804708600000013 6
Slide 22: 2016 CapEx
2016 CAPEX (amounts in millions) Q1 2016 Estimated 2016 Real Estate & Facility Related $35.299999999999997 $251.9 All Other Cap Ex 6.1 32.299999999999997 Subtotal $41.4 $284.2 Less: Mortgage Funding -33.700000000000003 -,167.9 Total Cash Used – Cap Ex $7.6999999999999957 $116.29999999999998
Slide 23: Debt Covenants
DEBT COVENANTS Compliant with all Covenants Covenant Actual Q1 2016 Liquidity Ratio >= 1.05 1.1599999999999999 Fixed Charge Coverage Ratio >= 1.20 1.76 Total Lease Adjusted Leverage Ratio <= 5.50 4.21
Slide 24: Operations Review
OPERATIONS REVIEW
Slide 25: New Vehicle Retail Same Store
NEW VEHICLE RETAIL SAME STORE Inventory levels continue to add pressure to PUR - market continues to be hyper competitive in particular with BMW Q1 2016 Q1 2015 B/(W) Retail Volume 30,156 31,017 -2.7758970887% Selling Price $38,116.362186297913 $37,959.413283683141 .4134650381% Gross Margin % 5.0999
Slide 26: New Vehicle SAAR
NEW VEHICLE SAAR 1st QTR Up 3.0% Q1 2016 - 17.1M Full Year 2015 – 17.4M Full Year 2014 – 16.4M
Slide 27: New Vehicle SAAR – Retail Only
NEW VEHICLE SAAR – RETAIL ONLY
Slide 28: Retail New Vehicle – Gross & Unit Trend
RETAIL NEW VEHICLE – GROSS & UNIT TREND Continuing Operations
Slide 29: New Vehicle – Gross Per Unit
NEW VEHICLE – GROSS PER UNIT Continuing Operations
Slide 30: Vehicle Days Supply
VEHICLE DAYS SUPPLY New – 74 days adjusted for 1,000 stop sell units Used – 33 days adjusted for 1,637 stop sell units
Slide 31: Used Vehicle Retail Same Store
USED VEHICLE RETAIL SAME STORE Volume Increases Offset by Lower GPU Record Q1 Units Q1 2016 Q1 2015 B/(W) Retail Volume 29,333 27,687 5.9450283527% GPU $1,387.1903869362086 $1,481.1205475493987 $-93.930160613190083 Gross Profit $40.690455619999803 $41.0077846000002 $-0.31732898000039861 Used to New
Slide 32: Used Vehicle – Gross & Unit Trend
* - Used Related Gross = (Used Gross + F&I + Reconditioning) ($’s in millions) USED VEHICLE – GROSS & UNIT TREND Continuing Operations Record Q1 Gross
Slide 33: F&I Same Store
Higher PUR accounted for $6.1M of the overall $7.2M increase in F&I Gross Gross (millions) $ 73.7 $ 80.9 F&I SAME STORE Total Gross Up 9.7%
Slide 34: F&I – Gross & PUR Trend
F&I – GROSS & PUR TREND Continuing Operations Q1 Record GPU and Gross
Slide 35: Fixed Ops Same Store
FIXED OPS SAME STORE Record Q1 Gross Q1 2016 Q1 2015 B/(W) Revenue $346.05449943000002 $317.27259285000099 9.7166494321% Gross Profit $165.64933493999999 $153.50298598000001 7.9127769942% SAAR - Keyed $0 $0 0.0%
Slide 36: Fixed Ops Same Store – Customer Pay
FIXED OPS SAME STORE – CUSTOMER PAY We continue to perform better in CP – the moves we have made in our shops and the increased level of technicians is paying off
Slide 37: Fixed Operations – Gross Trend
($’s in millions) FIXED OPERATIONS – GROSS TREND Continuing Operations
Slide 38: Summary
EchoPark® entering 2 new markets – Texas & Carolinas Returned capital through stock purchases and dividend Continued to grow the top-line revenue and gross New vehicle GPU pressure continues – industry supply continues to be higher than historic levels Used environment is stable Fixed operations and
Slide 39: EchoPark
EchoPark. AUTOMOTIVE
Slide 40: Adjustments Bridge Q1 2016
ADJUSTMENTS BRIDGE Q1 2016 (amounts in millions, except per share data) Q1 2016 Q1 2015 Notes 2016 Notes 2015 Pre-Tax EPS Pre-Tax EPS Unadjusted $0.31 $0.28000000000000003 Storm Damage 6.1 0.08 0 0 TX Hail Impairment 0 0 6.2 7.0000000000000007E-2 Website Other 0 0 1 0.02 Severance & Loss on Disposal
Slide 41: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS f Agusted ‘uch as, butnot limited fo, adjusted incom |rmeasures (he "Reported Consolidated Franchised Dealerships EchoPark® March 31, March 31, 2016 2015 2016 2016 207 cy SG&AReconciliation: Reported S 2844 $ 2709 $ 2787 $ 250 $ 57 $ 59 Pre-tax Adjustments: ‘Storm damage and
Slide 42: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Consolidated Franchised Dealerships EchoPark® March 31, 2015 2016 2016 2015 Tr Operating Profit Reconciliation: eported $ 43 $ 445 $ 455 $ 477 $ (2) $ (62) Predax Adjustments: 64 10 61 19 : 7 Impala es - 62 - Ar - 15 Total pre-tax adjustments 64 72 ST 7 a4 487 534 (2) en ‘As
Slide 43: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS ..
Slide 44: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Reported: Eamings (loss) and shares .. tof partipatng secues: cled sto piued comme ge tons) and shares. Adjustments (net of mings (loss) and Diluted eamings (loss) per share (2)... Weighted Averat ge Shares 50,854 50,854 549 51,403 ‘Three Months. Ended March 31, 2015 income
Slide 45: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Franchised Dealerships _EchoPark® Consolidated Consolidated Franchised S (0.08) Ss 031 § Ss 036 § EPS Reconciliation: Reported diluted earnings (loss) and shares ‘Adjustments: ‘Storm damage and other Impairment charges ‘Adjusted diluted earnings (loss) and shares. Sanjc) Ech