SONIC AUTOMOTIVE INC (SAH): restructuring charge — Sonic Automotive suspends operations at 8 EchoPark locations; expects $60-80M impairment charge

SONIC AUTOMOTIVE INC

Indefinite suspension at eight EchoPark locations and related delivery/buy centers due to pre-owned market volatility.
Expected non-cash impairment charge of $60-80M in Q2 2023, with $3-5M in cash severance costs.
EchoPark EBITDA breakeven target remains Q1 2024; long-term goal of 90% U.S. population coverage maintained.
Actions driven by lower new vehicle production, low lease returns, and volatile wholesale pricing.
Company expects continued wholesale price volatility into 2024 but sees improvement from new vehicle production increases.

Key facts

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Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

SONIC AUTOMOTIVE INC announced a restructuring with charges of ranging from $60.0 million to $80.0 million affecting EchoPark.

Type: restructuring
Charge: ranging from $60.0 million to $80.0 million
Affected area: EchoPark

Exact text from the filing

Sonic expects to record an impairment charge ranging from $60.0 million to $80.0 million in the second quarter of 2023.

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Source: SEC EDGAR

accession 0001043509-23-000012

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