Sonic Automotive, Inc. Reports All-Time Record Pre-Owned Unit Sales and Total Gross Profit

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CHARLOTTE, N.C., July 22, 2014 /PRNewswire/ -- Sonic Automotive, Inc. (NYSE: SAH), one of the nation's largest automotive retailers, today reported net income from continuing operations for the second quarter of 2014 of $27.1 million, or $0.51 per fully diluted share. Net income from continuing operations for the second quarter of 2013 was $8.7 million, or $0.16 per fully diluted share. Results for the second quarter of 2014 include a net pre-tax gain of approximately $5.9 million, or $0.07 per diluted share, related to a gain on disposal of franchises, partially offset by hail damage and legal settlement charges. Results for the second quarter of 2013 include a pre-tax charge of approximately $29.0 million, or $0.34 per diluted share, related to costs associated with retiring all of its outstanding 9.0% Senior Subordinated Notes due 2018 (the "9% Notes").

Expenses attributable to Sonic's stand-alone pre-owned store initiative were $3.2 million, or $0.04 per fully diluted share, in the second quarter of 2014 compared to $0.7 million, or $0.01 per fully diluted share, in the prior year quarter.

Q2 2014 Highlights:

  • New retail gross profit up 10.9% on a 3.4% increase in unit sales volume
  • New retail vehicle revenue up $83.5 million, or 7.0%
  • All-time record pre-owned sales of 28,514 units in Q2 2014
  • Pre-owned vehicle revenue up $64.9 million, or 12.0%
  • Pre-owned unit sales per store per month reached 100 units in May 2014 and 93 units for Q2 2014
  • All-time record quarterly fixed operations gross profit in Q2 2014 of $159.9 million, up $8.7 million, or 5.8%, over the prior year quarter
  • All-time record total gross profit in Q2 2014 of $346.9 million, up $23.1 million, or 7.1%, over the prior year quarter

B. Scott Smith, the Company's President, noted, "We posted a solid performance in the second quarter growing the top-line and gross profit in every revenue category. We are also very excited about the kick-off of our One Sonic-One Experience initiative in our Charlotte market during the third quarter of 2014. This initiative, combined with our pre-owned store initiative which we plan to open in Denver, Colorado during the fourth quarter of 2014, is one of the cornerstones which will enable Sonic to rapidly grow in the future."

Jeff Dyke, Sonic's EVP of Operations, stated, "We had a fantastic quarter, achieving another significant milestone. In the month of May, we retailed 100 pre-owned vehicles per store per month. This was a goal we set for ourselves over three years ago and we know we can continue to build on this accomplishment. This sales velocity in our pre-owned business also fueled exceptional results in fixed operations as well as in our finance and insurance areas. These two areas delivered total gross profit of $237 million, another all-time record. Growth in these two areas generated an additional $16.2 million of gross profit in the second quarter of 2014."


Second Quarter Earnings Conference Call

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

Presentation materials for the conference call can be accessed on the Company's website at www.sonicautomotive.com by clicking on the "Investor Relations" tab under "Our Company" and choosing "Webcasts & Presentations."

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

Domestic: 1.877.450.3867
International: 1.706.643.0958
Conference ID: 76537422

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

Domestic: 1.855.859.2056
International: 1.404.537.3406
Conference ID: 76537422

About Sonic Automotive

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

Included herein are forward-looking statements, including statements with respect to anticipated earnings per share from continuing operations, expected expense impacts of our company's stand-alone pre-owned store initiative, anticipated growth in new vehicle sales, and anticipated future success and impacts from the implementation of our planned customer experience and stand-alone pre-owned store initiatives. There are many factors that affect management's views about future events and trends of the Company's business. These factors involve risk and uncertainties that could cause actual results or trends to differ materially from management's view, including without limitation, economic conditions in the markets in which we operate, new and used vehicle industry sales volume, the success of our operational strategies, the rate and timing of overall economic recovery or decline, and the risk factors described in the Company's annual report on Form 10-K for the year ending December 31, 2013. The Company does not undertake any obligation to update forward-looking information.

 

 

Sonic Automotive, Inc.
Results of Operations (Unaudited)

This release contains certain non-GAAP financial measures (the "Adjusted" columns) as defined under SEC rules, such as, but not limited to, adjusted income from continuing operations and related earnings per share data.  The Company has reconciled these measures to the most directly comparable GAAP measures (the "Reported" columns) in the release.  The Company believes that these non-GAAP financial measures improve the transparency of the Company's disclosure by providing period-to-period comparability of the Company's results from operations

















Second Quarter Ended June 30, 2014

Second Quarter Ended June 30, 2013



Reported

Adjustments

Adjusted

Reported

Adjustments

Adjusted

                                                                                                                                                               (In thousands, except per share and unit data)

 

Revenues:












New retail vehicles

$                   1,283,231

$                    -

$                   1,283,231

$                   1,199,709

$                    -

$                   1,199,709

Fleet vehicles

15,546

-

15,546

47,452

-

47,452

Total new vehicles

1,298,777

-

1,298,777

1,247,161

-

1,247,161

Used vehicles


603,868

-

603,868

538,977

-

538,977

Wholesale vehicles


44,765

-

44,765

40,032

-

40,032

Total vehicles


1,947,410

-

1,947,410

1,826,170

-

1,826,170

Parts, service and collision repair

329,134

-

329,134

307,046

-

307,046

Finance, insurance and other, net

76,736

-

76,736

69,220

-

69,220

Total revenues


2,353,280

-

2,353,280

2,202,436

-

2,202,436

Gross profit


346,947

-

346,947

323,806

-

323,806

Selling, general and administrative expenses

(268,914)

(5,911)

(1)

(274,825)

(248,090)

-

(248,090)

Impairment charges

(4)


(4)

(36)

-

(36)

Depreciation and amortization

(14,431)

-

(14,431)

(13,144)

-

(13,144)

Operating income (loss)


63,598

(5,911)

57,687

62,536

-

62,536

Other income (expense):











Interest expense, floor plan

(4,846)

-

(4,846)

(5,591)

-

(5,591)

Interest expense, other, net


(13,865)

-

(13,865)

(14,390)

788

(2)

(13,602)

Other income (expense), net

3

-

3

(28,265)

28,235

(3)

(30)

Total other income (expense)

(18,708)

-

(18,708)

(48,246)

29,023

(19,223)

Income (loss) from continuing operations before taxes


44,890

(5,911)

38,979

14,290

29,023

43,313

Provision for income taxes - benefit (expense)

(17,829)

2,305

(15,524)

(5,573)

(11,319)

(16,892)

Income (loss) from continuing operations

27,061

(3,606)

23,455

8,717

17,704

26,421

Income (loss) from discontinued operations

(68)

-

(68)

199

-

199

Net income (loss)

$                       26,993

$              (3,606)

$                       23,387

$                         8,916

$              17,704

$                       26,620














Diluted earnings (loss) per common share:











Earnings (loss) per share from continuing operations


$                          0.51

$                (0.07)

$                          0.44

$                          0.16

$                 0.34

$                          0.50

Earnings (loss) per share from discontinued operations

-

-

-

0.01

(0.01)

-

Earnings (loss) per common share


$                          0.51

$                (0.07)

$                          0.44

$                          0.17

$                 0.33

$                          0.50

Weighted average common shares outstanding


52,930


52,930

52,942


52,942














Gross Margin Data (Continuing Operations):











New retail vehicles


5.8%


5.8%

5.5%


5.5%

Fleet vehicles

2.3%


2.3%

2.6%


2.6%

Total new vehicles

5.7%


5.7%

5.4%


5.4%

Used vehicles


6.2%


6.2%

7.0%


7.0%

Wholesale vehicles

(2.9%)


(2.9%)

(4.9%)


(4.9%)

Parts, service and collision repair


48.6%


48.6%

49.2%


49.2%

Finance, insurance and other

100.0%


100.0%

100.0%


100.0%

Overall gross margin

14.7%


14.7%

14.7%


14.7%














SG&A Expenses (Continuing Operations): 











Compensation (4)

$                     163,109




$                     149,528




Advertising


13,864




13,718




Rent  (5)


18,643




18,421




Other (6)


73,298




66,423




Total SG&A expenses


$                     268,914

$                5,911

$                     274,825

$                     248,090

$                    -

$                     248,090

SG&A expenses as % of gross profit


77.5%


79.2%

76.6%


76.6%














Operating Margin %


2.7%


2.5%

2.8%


2.8%














Unit Data (Continuing Operations):











New retail units


34,847




33,685




Fleet units

558




1,717




Total new units

35,405




35,402




Used units

28,514




26,599




Wholesale units

7,738




7,257

















(1) Represents gain on disposal of dealerships, loss from hail damage and legal expenses










(2) Represents double-carry interest on 9.0% Notes












(3) Represents loss on extinguishment of 9.0% Notes












(4) Included in SG&A Compensation expense are amounts attributable to Sonic's stand-alone pre-owned store initiative of $1.2 million and $0.6 million in the second quarter of 2014 and 2013, respectively


(5) Included in SG&A Rent expense is an amount attributable to Sonic's stand-alone pre-owned store initiative of $0.1 million in the second quarter of 2014






(6) Included in SG&A Other expense are amounts attributable to Sonic's stand-alone pre-owned store initiative of $1.9 million and $0.1 million in the second quarter of 2014 and 2013, respectively
















 

Sonic Automotive, Inc.
Results of Operations (Unaudited)































Six Months Ended June 30, 2014

Six Months Ended June 30, 2013



Reported

Adjustments

Adjusted

Reported

Adjustments

Adjusted



                                              (In thousands, except per share and unit data)


Revenues:













New retail vehicles


$                   2,395,521

$                    -

$                   2,395,521

$                   2,300,818

$                    -

$                   2,300,818

Fleet vehicles


49,876

-

49,876

89,399

-

89,399

Total new vehicles


2,445,397

-

2,445,397

2,390,217

-

2,390,217

Used vehicles


1,163,684

-

1,163,684

1,065,158

-

1,065,158

Wholesale vehicles


86,363

-

86,363

91,825

-

91,825

Total vehicles


3,695,444

-

3,695,444

3,547,200

-

3,547,200

Parts, service and collision repair

647,905

-

647,905

603,689

-

603,689

Finance, insurance and other, net


146,317

-

146,317

134,714

-

134,714

Total revenues

4,489,666

-

4,489,666

4,285,603

-

4,285,603

Gross profit

675,947

-

675,947

636,826

-

636,826

Selling, general and administrative expenses

(532,887)

(5,911)

(1)

(538,798)

(493,914)

-

(493,914)

Impairment charges

(7)

-

(7)

(51)

-

(51)

Depreciation and amortization


(28,812)

-

(28,812)

(25,278)

-

(25,278)

Operating income (loss)


114,241

(5,911)

108,330

117,583

-

117,583

Other income (expense):












Interest expense, floor plan

(9,535)

-

(9,535)

(10,804)

-

(10,804)

Interest expense, other, net


(27,683)

-

(27,683)

(28,749)

788

(2)

(27,961)

Other income (expense), net

100

-

100

(28,170)

28,235

(3)

65

Total other income (expense)


(37,118)

-

(37,118)

(67,723)

29,023

(38,700)

Income (loss) from continuing operations before taxes


77,123

(5,911)

71,212

49,860

29,023

78,883

Provision for income taxes - benefit (expense)

(30,078)

2,305

(27,773)

(19,445)

(11,319)

(30,764)

Income (loss) from continuing operations


47,045

(3,606)

43,439

30,415

17,704

48,119

Income (loss) from discontinued operations


(666)

-

(666)

(208)

-

(208)

Net income (loss)


$                       46,379

$              (3,606)

$                       42,773

$                       30,207

$             17,704

$                       47,911















Diluted earnings (loss) per common share:












Earnings (loss) per share from continuing operations


$                          0.89

$                (0.07)

$                          0.82

$                          0.57

$                 0.33

$                          0.90

Earnings (loss) per share from discontinued operations

(0.02)

0.01

(0.01)

-

-

-

Earnings (loss) per common share


$                          0.87

$                (0.06)

$                          0.81

$                          0.57

$                 0.33

$                          0.90

Weighted average common shares outstanding


52,938


52,938

52,937


52,937















Gross Margin Data (Continuing Operations):












New retail vehicles


5.8%


5.8%

5.7%


5.7%

Fleet vehicles


2.5%


2.5%

2.8%


2.8%

Total new vehicles


5.8%


5.8%

5.6%


5.6%

Used vehicles


6.7%


6.7%

7.1%


7.1%

Wholesale vehicles


(1.6%)


(1.6%)

(3.4%)


(3.4%)

Parts, service and collision repair


48.2%


48.2%

48.9%


48.9%

Finance, insurance and other


100.0%


100.0%

100.0%


100.0%

Overall gross margin


15.1%


15.1%

14.9%


14.9%















SG&A Expenses (Continuing Operations):












Compensation (4)


$                     320,263




$                     298,108





Advertising

27,982




27,150





Rent  (5)


37,178




37,444





Other (6)


147,464




131,212





Total SG&A expenses


$                     532,887

$                5,911

$                     538,798

$                     493,914

$                    -

$                     493,914

SG&A expenses as % of gross profit


78.8%


79.7%

77.6%


77.6%















Operating Margin %


2.5%


2.4%

2.7%


2.7%















Unit Data (Continuing Operations):












New retail units


64,876




64,275





Fleet units


1,660




3,210





Total new units


66,536




67,485





Used units


56,171




53,068





Wholesale units


15,118




15,650



















(1) Represents gain on disposal of dealerships, loss from hail damage and legal expenses.











(2) Represents double-carry interest on 9.0% Notes.













(3) Represents loss on extinguishment of 9.0% Notes.













(4) Included in SG&A Compensation expense are amounts attributable to Sonic's stand-alone pre-owned store initiative of $2.7 million and $1.1 million in the six months ended June 30, 2014 and 2013, respectively.

(5) Included in SG&A Rent expense is an amount attributable to Sonic's stand-alone pre-owned store initiative of $0.1 million in the six months ended June 30, 2014.






(6) Included in SG&A Other expense are amounts attributable to Sonic's stand-alone pre-owned store initiative of $2.2 million and $0.4 million in the six months ended June 30, 2014 and 2013, respectively.

















 

Sonic Automotive, Inc.
Results of Operations (Unaudited)
















Per Share Data


































Second Quarter Ended June 30, 2014





Income (Loss)

Income (Loss)









From Continuing

From Discontinued









Operations

Average

Net Income (Loss)



Weighted


Per

Shares

Per


Per



Average


Share


Share


Share



Shares

Amount

Amount


Amount

Amount

Amount



(In thousands, except per share amounts)

Reported:















Earnings (loss) and shares

52,514

$        27,061


$             (68)


$          26,993



Effect of participating securities:















Non-vested restricted stock















and stock units




(87)


-


(87)



Basic earnings (loss) and shares

52,514

$        26,974

$        0.51

$             (68)

$                 -

$          26,906

$        0.51

Effect of dilutive securities:















Stock compensation plans


416













Diluted earnings (loss) and shares


52,930

$        26,974

$        0.51

$             (68)

$                 -

$          26,906

$        0.51


















Adjustments (net of tax):















Hail and legal




$             840

$        0.01

$                 -

$                 -

$              840

$        0.01

Gain on disposal of franchises




(4,446)

(0.08)

-

-

(4,446)

(0.08)

Total adjustments




$         (3,606)

$       (0.07)

$                 -

$                 -

$          (3,606)

$      (0.07)


















Adjusted:















Diluted earnings (loss) per share (1)




$        0.44


$                 -


$        0.44


















(1) Expenses attributable to Sonic's stand-alone pre-owned store initiative were $0.04 per fully diluted share in the second quarter of 2014. 









































Second Quarter Ended June 30, 2013





Income (Loss)

Income (Loss)









From Continuing

From Discontinued









Operations

Operations

Net Income (Loss)



Weighted


Per


Per


Per



Average


Share


Share


Share



Shares

Amount

Amount

Amount

Amount

Amount

Amount



(In thousands, except per share amounts)

Reported:















Earnings (loss) and shares


52,597

$          8,717


$             199


$            8,916



Effect of participating securities:















Non-vested restricted stock















and stock units




(63)


-


(63)



Basic earnings (loss) and shares

52,597

$          8,654

$        0.16

$             199

$              0.01

$            8,853

$        0.17

Effect of dilutive securities:















Stock compensation plans


345













Diluted earnings (loss) and shares


52,942

$          8,654

$        0.16

$             199

$              0.01

$            8,853

$        0.17


















Adjustments (net of tax):















Double-carry interest


$             481

$        0.01

$                 -

$                    -

$              481

$        0.01

Debt extinguishment charges


17,223

0.33

-

-

17,223

0.33

Effect of two-class method & rounding


(129)

-

-

(0.01)

(129)

(0.01)

Total adjustments


$        17,575

$        0.34

$                 -

$             (0.01)

$          17,575

$        0.33


















Adjusted:















Diluted earnings (loss) per share (2)






$        0.50


$                    -


$        0.50


















(2) Expenses attributable to Sonic's stand-alone pre-owned store initiative were $0.01 per fully diluted share in the second quarter of 2013. 
























































Per Share Data


































Six Months Ended June 30, 2014





Income (Loss)

Income (Loss)









From Continuing

From Discontinued









Operations

Operations

Net Income (Loss)



Weighted


Per


Per


Per



Average


Share


Share


Share



Shares

Amount

Amount

Amount

Amount

Amount

Amount



(In thousands, except per share amounts)

Reported:















Earnings (loss) and shares


52,466

$        47,045


$           (666)


$          46,379



Effect of participating securities:















Non-vested restricted stock















and stock units




(151)


-


(151)



Basic earnings (loss) and shares


52,466

$        46,894

$        0.89

$           (666)

$             (0.01)

$          46,228

$        0.88

Effect of dilutive securities:















Stock compensation plans


472













Diluted earnings (loss) and shares


52,938

$        46,894

$        0.89

$           (666)

$             (0.02)

$          46,228

$        0.87


















Adjustments (net of tax):















Hail and legal


$             840

$        0.01

$                 -

$                    -

$              840

$        0.01

Gain on disposal of franchises




(4,446)

(0.08)

-

-

(4,446)

(0.08)

Effect of two-class method & rounding




12

-

-

0.01

12

0.01

Total adjustments




$         (3,594)

$      (0.07)

$                 -

$              0.01

$          (3,594)

$      (0.06)


















Adjusted:















Diluted earnings (loss) per share (3)






$        0.82


$             (0.01)


$        0.81


















(3) Expenses attributable to Sonic's stand-alone pre-owned store initiative were $0.05 per fully diluted share in the six months ended June 30, 2014. 









































Six Months Ended June 30, 2013





Income (Loss)

Income (Loss)









From Continuing

From Discontinued









Operations

Operations

Net Income (Loss)



Weighted


Per


Per


Per



Average


Share


Share


Share



Shares

Amount

Amount

Amount

Amount

Amount

Amount



(In thousands, except per share amounts)

Reported:















Earnings (loss) and shares  

52,591

$        30,415


$           (208)


$          30,207



Effect of participating securities:















Non-vested restricted stock















and stock units




(229)


-


(229)



Basic earnings (loss) and shares


52,591

$        30,186

$        0.57

$           (208)

$                 -

$          29,978

$        0.57

Effect of dilutive securities:















Stock compensation plans


346













Diluted earnings (loss) and shares


52,937

$        30,186

$        0.57

$           (208)

$                 -

$          29,978

$        0.57


















Adjustments (net of tax):















Double-carry interest




$             481

$        0.01

$                 -

$                 -

$              481

$        0.01

Debt extinguishment charges




17,223

0.33

-

-

17,223

0.33

Effect of two-class method & rounding




(129)

(0.01)

-

-

(129)

(0.01)

Total adjustments




$        17,575

$        0.33

$                 -

$                 -

$          17,575

$        0.33


















Adjusted:















Diluted earnings (loss) per share (4)






$        0.90


$                 -


$        0.90


















(4) Expenses attributable to Sonic's stand-alone pre-owned store initiative were $0.02 per fully diluted share in the six months ended June 30, 2013. 






































 

Sonic Automotive, Inc.
Results of Operations (Unaudited)

New Vehicles











Second Quarter Ended June 30,

Better / (Worse)



2014

2013

Change

% Change



(In thousands, except units and per unit data)

Reported:









Revenue


$                   1,298,777

$                   1,247,161

$            51,616

4.1%

Gross profit


$                        74,193

$                        67,790

$              6,403

9.4%

Unit sales


35,405

35,402

3

0.0%

Revenue per unit

$                        36,683

$                        35,229

$              1,454

4.1%

Gross profit per unit

$                          2,096

$                          1,915

$                 181

9.5%

Gross profit as a % of revenue

5.7%

5.4%

30

bps














Six Months Ended June 30,

Better / (Worse)



2014

2013

Change

% Change



(In thousands, except units and per unit data)

Reported:









Revenue


$                   2,445,397

$                   2,390,217

$            55,180

2.3%

Gross profit

$                      140,866

$                      134,259

$              6,607

4.9%

Unit sales


66,536

67,485

(949)

(1.4%)

Revenue per unit

$                        36,753

$                        35,418

$              1,335

3.8%

Gross profit per unit

$                          2,117

$                          1,989

$                 128

6.4%

Gross profit as a % of revenue

5.8%

5.6%

20

bps














Second Quarter Ended June 30,

Better / (Worse)



2014

2013

Change

% Change



(In thousands, except units and per unit data)

Same Store:









Revenue


$                   1,263,004

$                   1,235,935

$            27,069

2.2%

Gross profit

$                        72,025

$                        67,142

$              4,883

7.3%

Unit sales

34,713

35,164

(451)

(1.3%)

Revenue per unit

$                        36,384

$                        35,148

$              1,236

3.5%

Gross profit per unit


$                          2,075

$                          1,909

$                 166

8.7%

Gross profit as a % of revenue

5.7%

5.4%

30

bps














Six Months Ended June 30,

Better / (Worse)



2014

2013

Change

% Change



(In thousands, except units and per unit data)

Same Store:









Revenue

$                   2,382,051

$                   2,367,467

$            14,584

0.6%

Gross profit

$                      136,613

$                      132,604

$              4,009

3.0%

Unit sales

65,306

66,983

(1,677)

(2.5%)

Revenue per unit


$                        36,475

$                        35,344

$              1,131

3.2%

Gross profit per unit


$                          2,092

$                          1,980

$                 112

5.7%

Gross profit as a % of revenue


5.7%

5.6%

10

bps











 

Sonic Automotive, Inc.
Results of Operations (Unaudited)










Used Vehicles






















Second Quarter Ended June 30,

Better / (Worse)



2014

2013

Change

% Change



(In thousands, except units and per unit data)

Reported:









Revenue


$                     603,868

$                 538,977

$        64,891

12.0%

Gross profit


$                       37,473

$                   37,609

$            (136)

(0.4%)

Unit sales

28,514

26,599

1,915

7.2%

Revenue per unit


$                       21,178

$                   20,263

$              915

4.5%

Gross profit per unit


$                         1,314

$                     1,414

$             (100)

(7.1%)

Gross profit as a % of revenue.

6.2%

7.0%

(80)

bps














Six Months Ended June 30,

Better / (Worse)



2014

2013

 Change

% Change



(In thousands, except units and per unit data)

Reported:









Revenue


$                  1,163,684

$              1,065,158

$         98,526

9.2%

Gross profit


$                       78,167

$                   75,639

$           2,528

3.3%

Unit sales


56,171

53,068

3,103

5.8%

Revenue per unit


$                       20,717

$                   20,072

$               645

3.2%

Gross profit per unit


$                         1,392

$                     1,425

$                (33)

(2.3%)

Gross profit as a % of revenue


6.7%

7.1%

(40)

bps














Second Quarter Ended June 30,

Better / (Worse)



2014

2013

 Change

% Change



(In thousands, except units and per unit data)

Same Store:









Revenue


$                     582,386

$                 530,567

$         51,819

9.8%

Gross profit  

$                       36,675

$                   37,711

$          (1,036)

(2.7%)

Unit sales


27,617

26,226

1,391

5.3%

Revenue per unit  

$                       21,088

$                   20,231

$              857

4.2%

Gross profit per unit


$                         1,328

$                     1,438

$             (110)

(7.6%)

Gross profit as a % of revenue

6.3%

7.1%

(80)

bps














Six Months Ended June 30,

Better / (Worse)



2014

2013

 Change

% Change



(In thousands, except units and per unit data)

Same Store:









Revenue


$                  1,122,929

$              1,047,365

$         75,564

7.2%

Gross profit


$                       76,093

$                   74,435

$           1,658

2.2%

Unit sales


54,458

52,292

2,166

4.1%

Revenue per unit


$                       20,620

$                   20,029

$               591

3.0%

Gross profit per unit


$                         1,397

$                     1,423

$                (26)

(1.8%)

Gross profit as a % of revenue


6.8%

7.1%

(30)

bps











Sonic Automotive, Inc.
Results of Operations (Unaudited)










Wholesale Vehicles






















Second Quarter Ended June 30,

Better / (Worse)



2014

2013

Change

% Change



(In thousands, except units and per unit data)

Reported:









Revenue

$                        44,765

$                        40,032

$              4,733

11.8%

Gross profit (loss)

$                        (1,314)

$                        (1,943)

$                629

32.4%

Unit sales

7,738

7,257

481

6.6%

Revenue per unit

$                         5,785

$                         5,516

$                269

4.9%

Gross profit (loss) per unit


$                          (170)

$                          (268)

$                  98

36.6%

Gross profit (loss) as a % of revenue


(2.9%)

(4.9%)

200

bps














Six Months Ended June 30,

Better / (Worse)



2014

2013

Change

% Change



(In thousands, except units and per unit data)

Reported:









Revenue

$                        86,363

$                        91,825

$            (5,462)

(5.9%)

Gross profit (loss)


$                        (1,409)

$                        (3,145)

$              1,736

55.2%

Unit sales

15,118

15,650

(532)

(3.4%)

Revenue per unit


$                         5,713

$                         5,867

$               (154)

(2.6%)

Gross profit (loss) per unit

$                            (93)

$                          (201)

$                108

53.7%

Gross profit (loss) as a % of revenue. .

(1.6%)

(3.4%)

180

bps














Second Quarter Ended June 30,

Better / (Worse)



2014

2013

Change

% Change



(In thousands, except units and per unit data)

Same Store:









Revenue

$                        43,638

$                        39,729

$              3,909

9.8%

Gross profit (loss)

$                        (1,275)

$                        (1,872)

$                597

31.9%

Unit sales

7,573

7,195

378

5.3%

Revenue per unit


$                         5,762

$                         5,522

$                240

4.3%

Gross profit (loss) per unit

$                          (168)

$                          (260)

$                  92

35.4%

Gross profit (loss) as a % of revenue

(2.9%)

(4.7%)

180

bps     














Six Months Ended June 30,

Better / (Worse)



2014

2013

Change

% Change



(In thousands, except units and per unit data)

Same Store:









Revenue

$                        83,949

$                        90,646

$            (6,697)

(7.4%)

Gross profit (loss)

$                        (1,247)

$                        (2,995)

$              1,748

58.4%

Unit sales

14,804

15,497

(693)

(4.5%)

Revenue per unit

$                         5,671

$                         5,849

$               (178)

(3.0%)

Gross profit (loss) per unit

$                            (84)

$                          (193)

$                109

56.5%

Gross profit (loss) as a % of revenue

(1.5%)

(3.3%)

180

bps     











Sonic Automotive, Inc.
Results of Operations (Unaudited)










Parts, Service and Collision Repair ("Fixed Operations") 




















Second Quarter Ended June 30,

Better / (Worse)



2014

2013

 Change

% Change

Reported:

(In thousands)

Revenue









Customer pay


$                       145,040

$                       136,343

$               8,697

6.4%

Warranty


47,050

47,270

(220)

(0.5%)

Wholesale parts

47,145

40,982

6,163

15.0%

Internal, sublet and other


89,899

82,451

7,448

9.0%

Total


$                      329,134

$                      307,046

$            22,088

7.2%

Gross profit









Customer pay

$                        79,606

$                        75,166

$              4,440

5.9%

Warranty

25,671

26,388

(717)

(2.7%)

Wholesale parts


8,308

7,658

650

8.5%

Internal, sublet and other


46,274

41,918

4,356

10.4%

Total


$                      159,859

$                      151,130

$              8,729

5.8%

Gross profit as a % of revenue









Customer pay


54.9%

55.1%

(20)

bps

Warranty


54.6%

55.8%

(120)

bps

Wholesale parts

17.6%

18.7%

(110)

bps

Internal, sublet and other

51.5%

50.8%

70

bps

Total


48.6%

49.2%

(60)

bps














Six Months Ended June 30,

Better / (Worse)



2014

2013

 Change

% Change

Reported:

(In thousands)

Revenue









Customer pay

$                      286,162

$                      270,146

$            16,016

5.9%

Warranty


93,641

92,084

1,557

1.7%

Wholesale parts

95,089

81,520

13,569

16.6%

Internal, sublet and other


173,013

159,939

13,074

8.2%

Total

$                      647,905

$                      603,689

$            44,216

7.3%

Gross profit









Customer pay


$                      157,605

$                      149,282

$              8,323

5.6%

Warranty

50,909

50,283

626

1.2%

Wholesale parts


16,469

15,277

1,192

7.8%

Internal, sublet and other


87,023

80,517

6,506

8.1%

Total


$                      312,006

$                      295,359

$            16,647

5.6%

Gross profit as a % of revenue









Customer pay


55.1%

55.3%

(20)

bps

Warranty


54.4%

54.6%

(20)

bps

Wholesale parts

17.3%

18.7%

(140)

bps

Internal, sublet and other

50.3%

50.3%

0

bps

Total


48.2%

48.9%

(70)

bps











 

Sonic Automotive, Inc.
Results of Operations (Unaudited)










Parts, Service and Collision Repair ("Fixed Operations") 




















Second Quarter Ended June 30,

Better / (Worse)



2014

2013

 Change

% Change

Same Store:

(In thousands)

Revenue









Customer pay


$                       138,668

$                     134,870

$            3,798

2.8%

Warranty

45,184

46,542

(1,358)

(2.9%)

Wholesale parts

45,704

40,819

4,885

12.0%

Internal, sublet and other


87,173

81,519

5,654

6.9%

Total

$                      316,729

$                     303,750

$          12,979

4.3%

Gross profit









Customer pay


$                        76,361

$                       74,408

$            1,953

2.6%

Warranty

24,665

25,989

(1,324)

(5.1%)

Wholesale parts

7,832

7,632

200

2.6%

Internal, sublet and other


44,711

41,350

3,361

8.1%

Total

$                      153,569

$                     149,379

$            4,190

2.8%

Gross profit as a % of revenue









Customer pay

55.1%

55.2%

(10)

bps

Warranty

54.6%

55.8%

(120)

bps

Wholesale parts

17.1%

18.7%

(160)

bps

Internal, sublet and other


51.3%

50.7%

60

bps

Total


48.5%

49.2%

(70)

bps














Six Months Ended June 30,

Better / (Worse)



2014

2013

 Change

% Change

Same Store:

(In thousands)

Revenue









Customer pay


$                      273,161

$                     266,837

$            6,324

2.4%

Warranty

89,781

90,570

(789)

(0.9%)

Wholesale parts


92,110

81,212

10,898

13.4%

Internal, sublet and other

167,946

157,956

9,990

6.3%

Total


$                      622,998

$                     596,575

$          26,423

4.4%

Gross profit









Customer pay


$                      150,941

$                     147,661

$            3,280

2.2%

Warranty

48,828

49,745

(917)

(1.8%)

Wholesale parts

15,622

15,230

392

2.6%

Internal, sublet and other


84,046

79,278

4,768

6.0%

Total

$                      299,437

$                     291,914

$            7,523

2.6%

Gross profit as a % of revenue









Customer pay


55.3%

55.3%

0

bps

Warranty


54.4%

54.9%

(50)

bps

Wholesale parts

17.0%

18.8%

(180)

bps

Internal, sublet and other

50.0%

50.2%

(20)

bps

Total


48.1%

48.9%

(80)

bps











 

Sonic Automotive, Inc.
Results of Operations (Unaudited)










Finance, Insurance and Other, Net ("F&I")






















Second Quarter Ended June 30,

Better / (Worse)



2014

2013

Change

% Change



(In thousands, except per unit data)

Reported:









Revenue

$                       76,736

$                       69,220

$            7,516

10.9%

Gross profit per retail unit (excludes fleet)


$                         1,211

$                         1,148

$                 63

5.5%

























Six Months Ended June 30,

Better / (Worse)



2014

2013

Change

% Change



(In thousands, except per unit data)

Reported:









Revenue


$                     146,317

$                      134,714

$          11,603

8.6%

Gross profit per retail unit (excludes fleet)


$                         1,209

$                          1,148

$                 61

5.3%














Second Quarter Ended June 30,

Better / (Worse)



2014

2013

Change

% Change



(In thousands, except per unit data)

Same Store:









Revenue


$                       74,916

$                        68,765

$              6,151

8.9%

Gross profit per retail unit (excludes fleet)

$                         1,213

$                          1,152

$                   61

5.3%

























Six Months Ended June 30,

Better / (Worse)



2014

2013

Change

% Change



(In thousands, except per unit data)

Same Store:









Revenue

$                     142,847

$                      133,826

$              9,021

6.7%

Gross profit per retail unit (excludes fleet)

$                         1,210

$                          1,153

$                   57

4.9%











 

Sonic Automotive, Inc.
Results of Operations (Unaudited)










Selling, General and Administrative ("SG&A") Expenses




















Second Quarter Ended June 30,

Better / (Worse)



2014

2013

 Change

% Change



(In thousands)












Compensation


$                     163,109

$                    149,528

$          (13,581)

(9.1%)

Advertising

13,864

13,718

(146)

(1.1%)

Rent


18,643

18,421

(222)

(1.2%)

Other

73,298

66,423

(6,875)

(10.4%)

Total


$                    268,914

$                    248,090

$          (20,824)

(8.4%)

SG&A expenses as a % of gross profit








Compensation


47.0%

46.2%

(80)

bps

Advertising


4.0%

4.2%

20

bps

Rent


5.4%

5.7%

30

bps

Other

21.1%

20.5%

(60)

bps

Total


77.5%

76.6%

(90)

bps













Six Months Ended June 30,

Better / (Worse)



2014

2013

 Change

% Change



(In thousands)











Compensation

$                     320,263

$                    298,108

$          (22,155)

(7.4%)

Advertising


27,982

27,150

(832)

(3.1%)

Rent


37,178

37,444

266

0.7%

Other


147,464

131,212

(16,252)

(12.4%)

Total


$                     532,887

$                    493,914

$          (38,973)

(7.9%)

SG&A expenses as a % of gross profit








Compensation

47.4%

46.8%

(60)

bps

Advertising

4.1%

4.3%

20

bps

Rent


5.5%

5.9%

40

bps

Other

21.8%

20.6%

(120)

bps

Total


78.8%

77.6%

(120)

bps










 

 

SOURCE Sonic Automotive, Inc.

Released July 22, 2014