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

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.