Sonic Automotive, Inc. Reports All-Time Record New Retail Unit Sales and Q3 Total Gross Profit

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CHARLOTTE, N.C., Oct. 21, 2014 /PRNewswire/ -- Sonic Automotive, Inc. (NYSE: SAH), one of the nation's largest automotive retailers, today reported net income from continuing operations for the third quarter of 2014 of $24.6 million, or $0.47 per fully diluted share. Net income from continuing operations for the third quarter of 2013 was $24.7 million, or $0.46 per fully diluted share. Results for the third quarter of 2014 include a net pre-tax gain of approximately $0.8 million, or $0.01 per diluted share, related to a gain on disposal of franchises, partially offset by severe storm damage and impairment charges.

Results for the third quarter of 2014 include pre-tax expenses of approximately $3.1 million, or $0.04 per diluted share, and $3.6 million, or $0.05 per diluted share, related to the Company's One Sonic-One Experience and EchoPark® initiatives, respectively.  Results related to these initiatives for the third quarter of 2013 include pre-tax expenses of approximately $1.5 million, or $0.02 per diluted share, for One Sonic-One Experience, and $1.7 million, or $0.02 per diluted share, related to EchoPark®.

Q3 2014 Highlights:

  • All-time record new retail unit sales of 36,301 units, up 6.5% over the prior year quarter
  • New retail revenue up $93.1 million, or 7.6%, over the prior year quarter
  • Pre-owned revenue up $23.7 million, or 4.2%, over the prior year quarter
  • All-time record pre-owned gross profit of $41.2 million, an increase of 5.8% over the prior year quarter
  • Pre-owned unit sales per store per month were 90 units for Q3 2014
  • Q3 record fixed operations gross profit in 2014 of $155.3 million, up $6.1 million, or 4.1%, over the prior year quarter
  • Total gross profit in Q3 2014 was also a third quarter record of $341.5 million, up $15.4 million, or 4.7%, over the prior year quarter

B. Scott Smith, the Company's President, noted, "Our team worked very hard during the third quarter and it definitely paid off.  We were able to deliver record-breaking results while still driving forward with our EchoPark® and One Sonic-One Experience initiatives.  Initial results from our One Sonic-One Experience test store in Charlotte met our expectations and we plan to continue the rollout of this initiative to the entire Charlotte market in the fourth quarter.  The fourth quarter also involves our grand opening of EchoPark® in Denver which we believe, together with our One Sonic-One Experience initiative, will transform the retail automotive buying experience.  In addition, during the quarter, we repurchased approximately 1.2 million Class A common shares in open market transactions, reinforcing our commitment to return capital to shareholders.  At the end of the third quarter, we had approximately $93 million of remaining share repurchase authorization."

Jeff Dyke, Sonic's EVP of Operations, stated, "Our strategy to manage the combination of our revenue streams in order to maximize overall gross profit dollars worked well during the quarter.  We drove volume in new retail units that in turn contributed incremental fixed operations and F&I gross profit dollars.  The result yielded overall gross profit of $341.5 million, a third quarter record for our Company.  We are excited about how this strategy dovetails nicely into our One Sonic-One Experience initiative.  At our test store in Charlotte, we increased our market share from approximately 13.1% to 20.8% during the rollout period.  We have utilized our inventory and pricing models to remain competitive and increase market share and store profitability.  The customer feedback we've received has also been tremendous, further validating our assertion that we are fulfilling a customer need that currently is not met in our space."

Third 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: 76537423

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: 76537423

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 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

















Third Quarter Ended
September 30, 2014

Third Quarter Ended
September 30, 2013



Reported

Adjustments

Adjusted

Reported

Adjustments

Adjusted



(In thousands, except per share and unit data)

Revenues:












  New retail vehicles

$            1,312,592

$                -

$            1,312,592

$            1,219,525

$                -

$            1,219,525

  Fleet vehicles

15,245

-

15,245

41,745

-

41,745

    Total new vehicles

1,327,837

-

1,327,837

1,261,270

-

1,261,270

  Used vehicles

583,570

-

583,570

559,848

-

559,848

  Wholesale vehicles

41,433

-

41,433

42,731

-

42,731

    Total vehicles

1,952,840

-

1,952,840

1,863,849

-

1,863,849

  Parts, service and collision repair

325,740

-

325,740

309,600

-

309,600

  Finance, insurance and other, net

77,024

-

77,024

68,747

-

68,747

    Total revenues

2,355,604

-

2,355,604

2,242,196

-

2,242,196

Gross profit

341,489

-

341,489

326,081

-

326,081

Selling, general and administrative expenses

(270,144)

(1,044)

(1)

(271,188)

(254,564)

-

(254,564)

Impairment charges

(208)

207

(2)

(1)

(18)

-

(18)

Depreciation and amortization

(14,235)

-

(14,235)

(13,744)

-

(13,744)

Operating income (loss)

56,902

(837)

56,065

57,755

-

57,755

Other income (expense):











  Interest expense, floor plan

(4,406)

-

(4,406)

(5,463)

-

(5,463)

  Interest expense, other, net

(12,893)

-

(12,893)

(13,553)

-

(13,553)

  Other income (expense), net

(1)

-

(1)

29

-

29

    Total other income (expense)

(17,300)

-

(17,300)

(18,987)

-

(18,987)

Income (loss) from continuing operations before taxes

39,602

(837)

38,765

38,768

-

38,768

Provision for income taxes - benefit (expense)

(15,045)

327

(14,718)

(14,066)

-

(14,066)

Income (loss) from continuing operations

24,557

(510)

24,047

24,702

-

24,702

Income (loss) from discontinued operations

155

(845)

(3)

(690)

(1,375)

-

(1,375)

Net income (loss)

$                 24,712

$         (1,355)

$                 23,357

$                 23,327

$                -

$                 23,327














Diluted earnings (loss) per common share:











    Earnings (loss) per share from continuing operations


$                     0.47

$           (0.01)

$                     0.46

$                     0.46

$                -

$                     0.46

    Earnings (loss) per share from discontinued operations


-

(0.02)

(0.02)

(0.02)

-

(0.02)

    Earnings (loss) per common share


$                     0.47

$           (0.03)

$                     0.44

$                     0.44

$                -

$                     0.44

    Weighted average common shares outstanding


52,553


52,553

52,918


52,918














Gross Margin Data (Continuing Operations):











  New retail vehicles


5.3%


5.3%

5.9%


5.9%

  Fleet vehicles


0.6%


0.6%

2.5%


2.5%

    Total new vehicles


5.2%


5.2%

5.7%


5.7%

  Used vehicles


7.1%


7.1%

7.0%


7.0%

  Wholesale vehicles


(2.6%)


(2.6%)

(7.5%)


(7.5%)

  Parts, service and collision repair


47.7%


47.7%

48.2%


48.2%

  Finance, insurance and other


100.0%


100.0%

100.0%


100.0%

    Overall gross margin


14.5%


14.5%

14.5%


14.5%














SG&A Expenses (Continuing Operations): 











  Compensation (4)


$               163,230




$               151,683




  Advertising


14,045




14,132




  Rent

18,145




18,901




  Other (5)

74,724




69,848




    Total SG&A expenses


$               270,144

$           1,044

$               271,188

$               254,564

$                -

$               254,564

  SG&A expenses as % of gross profit


79.1%


79.4%

78.1%


78.1%














Operating Margin %


2.4%


2.4%

2.6%


2.6%














Unit Data (Continuing Operations):











  New retail units


36,301




34,087




  Fleet units


473




1,451




    Total new units


36,774




35,538




  Used units


27,536




27,632




  Wholesale units

7,916




7,641

















(1) Represents gain on disposal of dealerships, offset partially by severe storm damage charges.

(2) Represents property and equipment impairment charges.

(3) Represents lease exit adjustments, net of tax.

(4) Included in SG&A Compensation expense are amounts attributable to the EchoPark® initiative of $1.9 million and $0.6 million in the third quarter of 2014 and 2013, respectively.

(5) Included in SG&A Other expense are amounts attributable to the EchoPark® initiative of $1.7 million and $1.1 million in the third quarter of 2014 and 2013, respectively.

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)















Nine Months Ended
September 30, 2014

Nine Months Ended
September 30, 2013


Reported

Adjustments

Adjusted

Reported

Adjustments

Adjusted


(In thousands, except per share and unit data)

Revenues:











  New retail vehicles

$            3,708,114

$                -

$            3,708,114

$            3,520,343

$                -

$            3,520,343

  Fleet vehicles


65,120

-

65,120

131,143

-

131,143

    Total new vehicles 


3,773,234

-

3,773,234

3,651,486

-

3,651,486

  Used vehicles


1,747,254

-

1,747,254

1,625,006

-

1,625,006

  Wholesale vehicles


127,797

-

127,797

134,556

-

134,556

    Total vehicles

5,648,285

-

5,648,285

5,411,048

-

5,411,048

  Parts, service and collision repair


973,646

-

973,646

913,290

-

913,290

  Finance, insurance and other, net


223,340

-

223,340

203,461

-

203,461

    Total revenues


6,845,271

-

6,845,271

6,527,799

-

6,527,799

Gross profit


1,017,436

-

1,017,436

962,907

-

962,907

Selling, general and administrative expenses


(803,031)

(6,954)

(1)

(809,985)

(748,479)

-

(748,479)

Impairment charges


(215)

207

(2)

(8)

(69)

-

(69)

Depreciation and amortization

(43,047)

-

(43,047)

(39,020)

-

(39,020)

Operating income (loss)


171,143

(6,747)

164,396

175,339

-

175,339

Other income (expense):










  Interest expense, floor plan


(13,941)

-

(13,941)

(16,267)

-

(16,267)

  Interest expense, other, net


(40,576)

-

(40,576)

(42,302)

788

(4)

(41,514)

  Other income (expense), net


98

-

98

(28,143)

28,235

(5)

92

    Total other income (expense)


(54,419)

-

(54,419)

(86,712)

29,023

(57,689)

Income (loss) from continuing operations before taxes

116,724

(6,747)

109,977

88,627

29,023

117,650

Provision for income taxes - benefit (expense)

(45,122)

2,631

(42,491)

(33,510)

(11,320)

(44,830)

Income (loss) from continuing operations

71,602

(4,116)

67,486

55,117

17,703

72,820

Income (loss) from discontinued operations


(511)

(845)

(3)

(1,356)

(1,582)

-

(1,582)

Net income (loss)


$                 71,091

$         (4,961)

$                 66,130

$                 53,535

$         17,703

$                 71,238












Diluted earnings (loss) per common share:










    Earnings (loss) per share from continuing operations


$                     1.35

$           (0.08)

$                     1.27

$                     1.03

$             0.34

$                     1.37

    Earnings (loss) per share from discontinued operations


(0.01)

(0.01)

(0.02)

(0.03)

-

(0.03)

    Earnings (loss) per common share

$                     1.34

$           (0.09)

$                     1.25

$                     1.00

$             0.34

$                     1.34

    Weighted average common shares outstanding

52,808


52,808

52,930


52,930












Gross Margin Data (Continuing Operations):










  New retail vehicles


5.6%


5.6%

5.8%


5.8%

  Fleet vehicles


2.1%


2.1%

2.7%


2.7%

    Total new vehicles

5.6%


5.6%

5.7%


5.7%

  Used vehicles


6.8%


6.8%

7.1%


7.1%

  Wholesale vehicles


(2.0%)


(2.0%)

(4.7%)


(4.7%)

  Parts, service and collision repair


48.0%


48.0%

48.7%


48.7%

  Finance, insurance and other


100.0%


100.0%

100.0%


100.0%

    Overall gross margin

14.9%


14.9%

14.8%


14.8%












SG&A Expenses (Continuing Operations):










  Compensation (6) 

$               483,493




$               449,791



  Advertising


42,027




41,282



  Rent


55,324




56,344



  Other (7)

222,187




201,062



    Total SG&A expenses


$               803,031

$           6,954

$               809,985

$               748,479

$                -

$               748,479

  SG&A expenses as % of gross profit


78.9%


79.6%

77.7%


77.7%












Operating Margin %


2.5%


2.4%

2.7%


2.7%












Unit Data (Continuing Operations):










  New retail units

101,177




98,362



  Fleet units


2,133




4,661



    Total new units

103,310




103,023



  Used units


83,707




80,700



  Wholesale units 

23,034




23,291















(1) Represents gain on disposal of dealerships, offset partially by severe storm damage charges and legal expenses.

(2) Represents property and equipment impairment charges.

(3) Represents lease exit adjustments, net of tax.

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

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

(6) Included in SG&A Compensation expense are amounts attributable to the EchoPark® initiative of $4.6 million and $1.7 million in the nine months ended September 30, 2014 and 2013, respectively.

(7) Included in SG&A Other expense are amounts attributable to the EchoPark® initiative of $4.0 million and $1.6 million in the nine months ended September 30, 2014 and 2013, respectively.

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)















Per Share Data






























Third Quarter Ended September 30, 2014




Income (Loss)

Income (Loss)







From Continuing

From Discontinued







Operations

Average

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


52,070

$     24,557


$         155


$     24,712

  Effect of participating securities:













    Non-vested restricted stock













   and stock units 


(79)


-


(79)

  Basic earnings (loss) and shares


52,070

$     24,478

$       0.47

$         155

$           -

$     24,633

$       0.47

  Effect of dilutive securities:













    Stock compensation plans


483











  Diluted earnings (loss) and shares


52,553

$     24,478

$       0.47

$         155

$           -

$     24,633

$       0.47















Adjustments (net of tax):













  Severe storm damage




$       1,317

$       0.03

$             -

$           -

$       1,317

$       0.03

  Gain on disposal of franchises


(1,953)

(0.04)

-

-

(1,953)

(0.04)

  Impairment charges


126

-

-

-

126

-

  Lease exit adjustments




-

-

(845)

(0.02)

(845)

(0.02)

    Total adjustments




$         (510)

$      (0.01)

$       (845)

$      (0.02)

$      (1,355)

$      (0.03)















Adjusted:













  Diluted earnings (loss) per share (1)




$       0.46


$      (0.02)


$       0.44















(1) Expenses attributable to the EchoPark® initiative were $0.05 per fully diluted share in the third quarter of 2014. 



































Third Quarter Ended September 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


52,553

$     24,702


$    (1,375)


$     23,327

  Effect of participating securities:













    Non-vested restricted stock













   and stock units




(172)


-


(172)

  Basic earnings (loss) and shares


52,553

$     24,530

$       0.47

$    (1,375)

$      (0.03)

$     23,155

$       0.44

  Effect of dilutive securities:













    Stock compensation plans


365











  Diluted earnings (loss) and shares


52,918

$     24,530

$       0.46

$    (1,375)

$      (0.02)

$     23,155

$       0.44















Adjusted:













  Diluted earnings (loss) per share (2)




$       0.46


$      (0.02)


$       0.44















(2) Expenses attributable to the EchoPark® initiative were $0.02 per fully diluted share in the third quarter of 2013. 





















Sonic Automotive, Inc.

Results of Operations (Unaudited)















Per Share Data






























Nine Months Ended September 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


52,333

$     71,602


$       (511)


$     71,091

  Effect of participating securities:













    Non-vested restricted stock













   and stock units




(229)


-


(229)

  Basic earnings (loss) and shares

52,333

$     71,373

$       1.36

$       (511)

$      (0.01)

$     70,862

$       1.35

  Effect of dilutive securities:













    Stock compensation plans


475











  Diluted earnings (loss) and shares


52,808

$     71,373

$       1.35

$       (511)

$      (0.01)

$     70,862

$       1.34















Adjustments (net of tax):













  Severe storm damage and legal




$       2,157

$       0.04

$             -

$           -

$       2,157

$       0.04

  Gain on disposal of franchises


(6,399)

(0.12)

-

-

(6,399)

(0.12)

  Impairment charges


126

-

-

-

126

-

  Lease exit adjustments




-

-

(845)

(0.01)

(845)

(0.01)

    Total adjustments




$      (4,116)

$      (0.08)

$       (845)

$      (0.01)

$      (4,961)

$      (0.09)















Adjusted:













  Diluted earnings (loss) per share (3)




$       1.27


$      (0.02)


$       1.25















(3) Expenses attributable to the EchoPark® initiative were $0.10 per fully diluted share in the nine months ended September 30, 2014. 

































Nine Months Ended September 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


52,578

$     55,117


$    (1,582)


$     53,535

  Effect of participating securities:













    Non-vested restricted stock













   and stock units 


(393)


-


(393)

  Basic earnings (loss) and shares


52,578

$     54,724

$       1.04

$    (1,582)

$      (0.03)

$     53,142

$       1.01

  Effect of dilutive securities:













    Stock compensation plans


352











  Diluted earnings (loss) and shares


52,930

$     54,724

$       1.03

$    (1,582)

$      (0.03)

$     53,142

$       1.00















Adjustments (net of tax):













  Double-carry interest




$          480

$       0.01

$             -

$           -

$          480

$       0.01

  Debt extinguishment charges




17,223

0.33

-

-

17,223

0.33

    Total adjustments




$     17,703

$       0.34

$             -

$           -

$     17,703

$       0.34















Adjusted:













  Diluted earnings (loss) per share (4)




$       1.37


$      (0.03)


$       1.34















(4) Expenses attributable to the EchoPark® initiative were $0.04 per fully diluted share in the nine months ended September 30, 2013. 

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)









New Vehicles


















Third Quarter Ended September 30,

Better / (Worse)


2014

2013

Change

% Change


(In thousands, except units and per unit data)

Reported:






  Revenue


$            1,327,837

$            1,261,270

$       66,567

5.3%

  Gross profit


$                 69,026

$                 72,408

$       (3,382)

(4.7%)

  Unit sales


36,774

35,538

1,236

3.5%

  Revenue per unit


$                 36,108

$                 35,491

$            617

1.7%

  Gross profit per unit


$                   1,877

$                   2,037

$          (160)

(7.9%)

  Gross profit as a % of revenue


5.2%

5.7%

(50)

bps










Nine Months Ended September 30,

Better / (Worse)


2014

2013

Change

% Change


(In thousands, except units and per unit data)

Reported:






  Revenue


$            3,773,234

$            3,651,486

$     121,748

3.3%

  Gross profit


$               209,892

$               206,668

$         3,224

1.6%

  Unit sales


103,310

103,023

287

0.3%

  Revenue per unit


$                 36,523

$                 35,443

$         1,080

3.0%

  Gross profit per unit


$                   2,032

$                   2,006

$              26

1.3%

  Gross profit as a % of revenue

5.6%

5.7%

(10)

bps










Third Quarter Ended September 30,

Better / (Worse)


2014

2013

Change

% Change


(In thousands, except units and per unit data)

Same Store:






  Revenue


$            1,310,138

$            1,235,089

$       75,049

6.1%

  Gross profit


$                 67,766

$                 70,602

$       (2,836)

(4.0%)

  Unit sales

36,443

34,992

1,451

4.1%

  Revenue per unit


$                 35,950

$                 35,296

$            654

1.9%

  Gross profit per unit


$                   1,860

$                   2,018

$          (158)

(7.8%)

  Gross profit as a % of revenue

5.2%

5.7%

(50)

bps










Nine Months Ended September 30,

Better / (Worse)


2014

2013

Change

% Change


(In thousands, except units and per unit data)

Same Store:






  Revenue


$            3,673,608

$            3,586,365

$       87,243

2.4%

  Gross profit


$               203,132

$               202,181

$            951

0.5%

  Unit sales


101,392

101,663

(271)

(0.3%)

  Revenue per unit


$                 36,232

$                 35,277

$            955

2.7%

  Gross profit per unit


$                   2,003

$                   1,989

$              14

0.7%

  Gross profit as a % of revenue

5.5%

5.6%

(10)

bps

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Used Vehicles


















Third Quarter Ended September 30,

Better / (Worse)


2014

2013

Change

% Change


(In thousands, except units and per unit data)

Reported:






  Revenue


$               583,570

$               559,848

$       23,722

4.2%

  Gross profit


$                 41,245

$                 38,976

$         2,269

5.8%

  Unit sales


27,536

27,632

(96)

(0.3%)

  Revenue per unit 


$                 21,193

$                 20,261

$            932

4.6%

  Gross profit per unit


$                   1,498

$                   1,411

$              87

6.2%

  Gross profit as a % of revenue


7.1%

7.0%

10

bps










Nine Months Ended September 30,

Better / (Worse)


2014

2013

 Change

% Change


(In thousands, except units and per unit data)

Reported:






  Revenue

$            1,747,254

$            1,625,006

$     122,248

7.5%

  Gross profit


$               119,412

$               114,615

$         4,797

4.2%

  Unit sales


83,707

80,700

3,007

3.7%

  Revenue per unit


$                 20,873

$                 20,136

$            737

3.7%

  Gross profit per unit


$                   1,427

$                   1,420

$                7

0.5%

  Gross profit as a % of revenue

6.8%

7.1%

(30)

bps










Third Quarter Ended September 30,

Better / (Worse)


2014

2013

 Change

% Change


(In thousands, except units and per unit data)

Same Store:






  Revenue


$               569,226

$               544,018

$       25,208

4.6%

  Gross profit


$                 40,617

$                 38,074

$         2,543

6.7%

  Unit sales


27,000

26,953

47

0.2%

  Revenue per unit


$                 21,082

$                 20,184

$            898

4.4%

  Gross profit per unit


$                   1,504

$                   1,413

$              91

6.4%

  Gross profit as a % of revenue


7.1%

7.0%

10

bps










Nine Months Ended September 30,

Better / (Worse)


2014

2013

 Change

% Change


(In thousands, except units and per unit data)

Same Store:






  Revenue


$            1,677,794

$            1,580,336

$       97,458

6.2%

  Gross profit


$               115,743

$               111,673

$         4,070

3.6%

  Unit sales


80,928

78,785

2,143

2.7%

  Revenue per unit


$                 20,732

$                 20,059

$            673

3.4%

  Gross profit per unit


$                   1,430

$                   1,417

$              13

0.9%

  Gross profit as a % of revenue


6.9%

7.1%

(20)

bps

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Wholesale Vehicles


















Third Quarter Ended September 30,

Better / (Worse)


2014

2013

Change

% Change


(In thousands, except units and per unit data)

Reported:







  Revenue


$           41,433

$       42,731

$   (1,298)

(3.0%)

  Gross profit (loss)

$            (1,086)

$        (3,197)

$    2,111

66.0%

  Unit sales


7,916

7,641

275

3.6%

  Revenue per unit


$             5,234

$          5,592

$      (358)

(6.4%)

  Gross profit (loss) per unit


$              (137)

$           (418)

$       281

67.2%

  Gross profit (loss) as a % of revenue


(2.6%)

(7.5%)

490

bps











Nine Months Ended September 30,

Better / (Worse)


2014

2013

Change

% Change


(In thousands, except units and per unit data)

Reported:







  Revenue


$            127,797

$          134,556

$   (6,759)

(5.0%)

  Gross profit (loss)


$               (2,493)

$             (6,343)

$     3,850

60.7%

  Unit sales

23,034

23,291

(257)

(1.1%)

  Revenue per unit


$                5,548

$              5,777

$      (229)

(4.0%)

  Gross profit (loss) per unit

$                 (108)

$                (272)

$        164

60.3%

  Gross profit (loss) as a % of revenue

(2.0%)

(4.7%)

270

bps











Third Quarter Ended September 30,

Better / (Worse)


2014

2013

Change

% Change


(In thousands, except units and per unit data)

Same Store:







  Revenue


$              40,894

$              42,141

$    (1,247)

(3.0%)

  Gross profit (loss)

$              (1,043)

$             (3,105)

$      2,062

66.4%

  Unit sales

7,829

7,545

284

3.8%

  Revenue per unit

$                5,223

$                5,585

$       (362)

(6.5%)

  Gross profit (loss) per unit


$                 (133)

$                (412)

$         279

67.7%

  Gross profit (loss) as a % of revenue


(2.6%)

(7.4%)

480

bps











Nine Months Ended September 30,

Better / (Worse)


2014

2013

Change

% Change


(In thousands, except units and per unit data)

Same Store:







  Revenue


$            123,962

$            132,528

$     (8,566)

(6.5%)

  Gross profit (loss)


$              (2,262)

$              (6,019)

$       3,757

62.4%

  Unit sales


22,509

22,987

(478)

(2.1%)

  Revenue per unit


$                5,507

$                5,765

$        (258)

(4.5%)

  Gross profit (loss) per unit


$                 (100)

$                (262)

$          162

61.8%

  Gross profit (loss) as a % of revenue


(1.8%)

(4.5%)

270

bps

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)

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















Third Quarter Ended September 30,

Better / (Worse)


2014

2013

 Change

% Change

Reported:

(In thousands)

  Revenue







    Customer pay

$     141,458

$      137,106

$      4,352

3.2%

    Warranty

48,431

45,405

3,026

6.7%

    Wholesale parts


46,983

43,349

3,634

8.4%

    Internal, sublet and other

88,868

83,740

5,128

6.1%

    Total


$      325,740

$      309,600

$    16,140

5.2%

  Gross profit







    Customer pay


$        77,546

$        75,203

$         2,343

3.1%

    Warranty

26,254

24,374

1,880

7.7%

    Wholesale parts


8,122

7,881

241

3.1%

    Internal, sublet and other


43,358

41,689

1,669

4.0%

    Total

$      155,280

$      149,147

$         6,133

4.1%

  Gross profit as a % of revenue







    Customer pay

54.8%

54.9%

(10)

bps

    Warranty


54.2%

53.7%

50

bps

    Wholesale parts


17.3%

18.2%

(90)

bps

    Internal, sublet and other

48.8%

49.8%

(100)

bps

    Total


47.7%

48.2%

(50)

bps











Nine Months Ended September 30,

Better / (Worse)


2014

2013

 Change

% Change

Reported:

(In thousands)

  Revenue







    Customer pay

$      427,620

$      407,252

$       20,368

5.0%

    Warranty


142,072

137,489

4,583

3.3%

    Wholesale parts


142,071

124,870

17,201

13.8%

    Internal, sublet and other

261,883

243,679

18,204

7.5%

    Total


$     973,646

$      913,290

$       60,356

6.6%

  Gross profit







    Customer pay

$     235,151

$     224,485

$       10,666

4.8%

    Warranty

77,163

74,657

2,506

3.4%

    Wholesale parts


24,590

23,158

1,432

6.2%

    Internal, sublet and other


130,381

122,206

8,175

6.7%

    Total


$     467,285

$     444,506

$       22,779

5.1%

  Gross profit as a % of revenue







    Customer pay


55.0%

55.1%

(10)

bps

    Warranty

54.3%

54.3%

0

bps

    Wholesale parts


17.3%

18.5%

(120)

bps

    Internal, sublet and other

49.8%

50.2%

(40)

bps

    Total


48.0%

48.7%

(70)

bps

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)

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















Third Quarter Ended September 30,

Better / (Worse)


2014

2013

 Change

% Change

Same Store:

(In thousands)

  Revenue







    Customer pay


$               137,639

$               133,451

$         4,188

3.1%

    Warranty


47,383

44,118

3,265

7.4%

    Wholesale parts


45,945

42,649

3,296

7.7%

    Internal, sublet and other

87,166

81,964

5,202

6.3%

    Total


$               318,133

$               302,182

$       15,951

5.3%

  Gross profit







    Customer pay


$                 75,546

$                 73,255

$         2,291

3.1%

    Warranty

25,766

23,660

2,106

8.9%

    Wholesale parts

7,859

7,717

142

1.8%

    Internal, sublet and other

42,411

40,498

1,913

4.7%

  Total


$               151,582

$               145,130

$         6,452

4.4%

  Gross profit as a % of revenue







    Customer pay

54.9%

54.9%

0

bps

    Warranty


54.4%

53.6%

80

bps

    Wholesale parts


17.1%

18.1%

(100)

bps

    Internal, sublet and other

48.7%

49.4%

(70)

bps

  Total


47.6%

48.0%

(40)

bps











Nine Months Ended September 30,

Better / (Worse)


2014

2013

 Change

% Change

Same Store:

(In thousands)

  Revenue







    Customer pay

$               408,504

$               398,444

$       10,060

2.5%

    Warranty

136,337

133,952

2,385

1.8%

    Wholesale parts

137,461

123,360

14,101

11.4%

    Internal, sublet and other


253,720

238,881

14,839

6.2%

    Total

$               936,022

$               894,637

$       41,385

4.6%

  Gross profit







    Customer pay


$               225,232

$               219,888

$         5,344

2.4%

    Warranty

74,190

73,048

1,142

1.6%

    Wholesale parts

23,343

22,808

535

2.3%

    Internal, sublet and other


125,740

119,252

6,488

5.4%

    Total


$               448,505

$               434,996

$       13,509

3.1%

  Gross profit as a % of revenue







    Customer pay

55.1%

55.2%

(10)

bps

    Warranty


54.4%

54.5%

(10)

bps

    Wholesale parts


17.0%

18.5%

(150)

bps

    Internal, sublet and other


49.6%

49.9%

(30)

bps

    Total


47.9%

48.6%

(70)

bps

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)

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

















Third Quarter Ended September 30,

Better / (Worse)


2014

2013

Change

% Change


(In thousands, except per unit data)

Reported:







  Revenue


$              77,024

$              68,747

$        8,277

12.0%

  Gross profit per retail unit (excludes fleet)


$                1,207

$                1,114

$             93

8.3%




















Nine Months Ended September 30,

Better / (Worse)


2014

2013

Change

% Change


(In thousands, except per unit data)

Reported:







  Revenue


$            223,340

$            203,461

$      19,879

9.8%

  Gross profit per retail unit (excludes fleet)

$                1,208

$                1,136

$             72

6.3%











Third Quarter Ended September 30,

Better / (Worse)


2014

2013

Change

% Change


(In thousands, except per unit data)

Same Store:







  Revenue


$              76,386

$              67,611

$        8,775

13.0%

  Gross profit per retail unit (excludes fleet)

$                1,213

$                1,118

$             95

8.5%




















Nine Months Ended September 30,

Better / (Worse)


2014

2013

Change

% Change


(In thousands, except per unit data)

Same Store:







  Revenue


$            218,160

$            200,589

$      17,571

8.8%

  Gross profit per retail unit (excludes fleet)

$                1,211

$                1,141

$             70

6.1%

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)

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
















Third Quarter Ended September 30,

Better / (Worse)


2014

2013

 Change

% Change


(In thousands)

Reported:







  Compensation

$            163,230

$            151,683

$   (11,547)

(7.6%)

  Advertising

14,045

14,132

87

0.6%

  Rent


18,145

18,901

756

4.0%

  Other


74,724

69,848

(4,876)

(7.0%)

Total


$            270,144

$            254,564

$   (15,580)

(6.1%)

 SG&A expenses as a % of gross profit






  Compensation


47.8%

46.5%

(130)

bps

  Advertising

4.1%

4.3%

20

bps

  Rent


5.3%

5.8%

50

bps

  Other

21.9%

21.5%

(40)

bps

Total


79.1%

78.1%

(100)

bps










Nine Months Ended September 30,

Better / (Worse)


2014

2013

 Change

% Change


(In thousands)

Reported:






  Compensation


$            483,493

$            449,791

$   (33,702)

(7.5%)

  Advertising

42,027

41,282

(745)

(1.8%)

  Rent


55,324

56,344

1,020

1.8%

  Other


222,187

201,062

(21,125)

(10.5%)

Total


$            803,031

$            748,479

$   (54,552)

(7.3%)

 SG&A expenses as a % of gross profit






  Compensation


47.5%

46.7%

(80)

bps

  Advertising


4.1%

4.3%

20

bps

  Rent


5.4%

5.9%

50

bps

  Other


21.9%

20.8%

(110)

bps

Total


78.9%

77.7%

(120)

bps

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sonic-automotive-inc-reports-all-time-record-new-retail-unit-sales-and-q3-total-gross-profit-221950569.html

SOURCE Sonic Automotive, Inc.

Released October 21, 2014