EchoPark’s record-setting bandwagon continues to roll.

Sonic Automotive’s used-car operation has taken off in 2024, and it soared to a third consecutive record quarter for gross profit, according to the company’s third quarter financial results, released this week.

EchoPark’s gross of $55.2 million was the best ever for Q3, and that wasn’t the end of the good news. Its net income of $5.2 million was up 131% year-over-year and the segment’s adjusted EBITDA reached $8.9 million, a 271% increase over Q3 2023.

Excluding the EchoPark stores that closed in 2023, EchoPark’s adjusted EBITDA was $9.2 million, a 454% improvement from the $2.6 million loss the previous year.

While unit sales of 17,757 were down 7% and total revenues fell 13% for EchoPark YOY as a result of the downsizing, selling, general and administrative expenses dropped 31%, leading to a 12% rise in gross profit per unit sold, to $3,111.

On a same-market basis, which excludes the closed stores, Sonic said, retail used vehicle unit sales volume was up 2%, revenues were down 3% and gross profit was up 21%, and segment income was $6.2 million.

“I’m pleased to report we continued to build momentum in our EchoPark segment in the third quarter,” Sonic chairman and CEO David Smith said, “generating all-time record quarterly gross profit, segment income and adjusted EBITDA as a result of the dedicated efforts of our team and the improving conditions in the used vehicle retail environment.”

Overall, Sonic reported total revenues of $3.5 billion, down 4% year-over-year and total gross profit of $543.6 million, down 7% year-over-year, but net income rose 8% to $74.2 million.

The company said that net income number includes the pre-tax effects of $1.8 million in excess compensation expense paid to staff related to the CDK outage in June, and a $1.5 million charge related to storm damage. That was partially offset by a $2.3 million gain related to sale of real estate from the closed EchoPark stores.

It also includes a $31 million income tax benefit to correct a previous error.

Sonic said the carryover effects the CDK incident is estimated to have reduced Q3 GAAP income before taxes by more than $17 million, and net income by about $12.7 million.

“The Sonic Automotive team continued to execute at a high level,” Smith said, “despite operational disruptions throughout July related to the functionality of certain CDK customer lead applications, inventory management applications and related third-party application integrations with CDK, which negatively impacted our franchised dealerships segment results in the third quarter.

“With that disruption behind us, we remain confident that our team, our brand portfolio and our long-term strategy will continue to benefit our diversified business and generate long-term value for our stakeholders.”