Sonic Automotive, Inc. Reports Record Earnings

Q3 2015 Diluted Continuing Operations Earnings per Share of $0.53

CHARLOTTE, N.C., Oct. 28, 2015 /PRNewswire/ --

Third Quarter 2015 Results

  • Record third quarter net income from continuing operations of $27.1 million, up $3.1 million, or 12.7% from the prior year period quarterly adjusted amount of $24.0 million
  • All-time record quarterly new retail sales of 36,891 units, up 1.6% over the prior year quarter
  • All-time record quarterly pre-owned retail sales of 30,467 units, up 10.6% over the prior year quarter – retailed 100 pre-owned units per store per month in the quarter
  • All-time record quarterly pre-owned gross profit of $41.7 million, up 1.2% over the prior year quarter
  • Record third quarter fixed operations gross profit of $169.7 million, up 9.3% over the prior year quarter
  • All-time quarterly total gross profit of $360.3 million, up 5.5% over the prior year quarter
  • Echo Park® stores retail 920 units, up 4.4% from the prior quarter

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 2015 of $27.1 million, or $0.53 per diluted share.  Included in these amounts are pre-tax expenses of $3.7 million, or $0.04 per diluted share, related to EchoPark® operations.

Adjusted net income from continuing operations for the third quarter of 2014 was $24.0 million, or $0.46 per diluted share. Included in these adjusted amounts are pre-tax expenses of $3.6 million, or $0.04 per diluted share, related to EchoPark® operations.  On a GAAP basis, net income from continuing operations and related diluted earnings per share for the third quarter of 2014 were $24.6 million and $0.47 per share, respectively.  See the accompanying tables for a reconciliation of the adjusted balances to GAAP basis amounts and further details of the quarterly adjustments.

B. Scott Smith, Sonic's Chief Executive Officer, noted, "The overall increase in retail activity and our dedication to provide our customers with an outstanding buying and servicing experience contributed to record results during the quarter.  The automotive retail environment continues to expand and present us with opportunities to strengthen and grow our business." 

"We are extremely excited about the development of our EchoPark® brand.  Our EchoPark® stores continue to grow and we expect two additional stores to open in the Denver market in the first half of 2016.  We are in the process of acquiring property in two additional markets as we look to accelerate the EchoPark rollout in the latter part of 2016 and early 2017."

"During the quarter, our One Sonic-One Experience ("OSOE") stores experienced year-over-year net new vehicle market share gains.  Our customers love the speed and ease offered by this buying experience.  We have been mystery shopped by various parties over the last year and have received rave reviews, notably, a July 20, 2015 review by Matt Jones, Senior Editor for Edmunds.com entitled, "Mystery Shopping Sonic Automotive's New Sales Process."  We believe customers will come to the same conclusion Mr. Jones came to in the article… that we are onto something."

Jeff Dyke, Sonic's EVP of Operations, stated, "We continue to make progress on all fronts of our business. Our core business is performing well and steps that we have taken to increase inventory levels in pre-owned and our technician count are beginning to payoff.  We are gaining share across all brands in our One Sonic-One Experience stores in Charlotte and should be ready to begin phase I of our technology rollout in the first quarter of 2016.  We also continue to make excellent progress at our EchoPark stores and are right on our forecast.  This is a very exciting time for our team that has worked countless hours to bring us to this point as we look forward to offering our guests an experience they simply cannot get anywhere else in the industry."

Third Quarter 2015 Earnings Conference Call

Senior management will host a conference call today at 10:00 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 "Webcasts & Presentations."

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: 30271525

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: 30271525

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, 2014. 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 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 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.
















Three Months Ended September 30,


Nine Months Ended September 30,





2015


2014


2015


2014





(In thousands, except per share and unit data)


Revenues:











New retail vehicles


$               1,352,180


$               1,312,592


$          3,828,027


$          3,708,114



Fleet vehicles


15,849


15,245


37,612


65,120



Total new vehicles


1,368,029


1,327,837


3,865,639


3,773,234



Used vehicles


652,058


583,570


1,904,594


1,747,254



Wholesale vehicles


37,971


41,433


120,760


127,797



Total vehicles


2,058,058


1,952,840


5,890,993


5,648,285



Parts, service and collision repair


350,520


325,740


1,019,878


973,646



Finance, insurance and other, net


85,830


77,024


242,792


223,340



Total revenues


2,494,408


2,355,604


7,153,663


6,845,271



Gross profit


360,251


341,489


1,050,764


1,017,436



Selling, general and administrative expenses


(280,041)


(270,144)


(835,564)


(803,031)



Impairment charges


(37)


(208)


(16,698)


(215)



Depreciation and amortization


(17,250)


(14,235)


(50,953)


(43,047)



Operating income (loss)


62,923


56,902


147,549


171,143



Other income (expense):










Interest expense, floor plan


(5,364)


(4,406)


(15,488)


(13,941)



Interest expense, other, net


(12,361)


(12,893)


(38,635)


(40,576)



Other income (expense), net


-


(1)


102


98



Total other income (expense)


(17,725)


(17,300)


(54,021)


(54,419)



Income (loss) from continuing operations before taxes


45,198


39,602


93,528


116,724



Provision for income taxes for continuing operations- benefit (expense)


(18,095)


(15,045)


(36,944)


(45,122)



Income (loss) from continuing operations


27,103


24,557


56,584


71,602



Income (loss) from discontinued operations


(598)


155


(1,331)


(511)



Net income (loss)


$                    26,505


$                    24,712


$               55,253


$               71,091













Diluted earnings (loss) per common share:










Earnings (loss) per share from continuing operations


$                        0.53


$                        0.47


$                   1.11


$                   1.35



Earnings (loss) per share from discontinued operations


(0.01)


-


(0.03)


(0.01)



Earnings (loss) per common share


$                        0.52


$                        0.47


$                   1.08


$                   1.34



Weighted average common shares outstanding


50,769


52,553


51,086


52,808













Gross Margin Data (Continuing Operations):










New retail vehicles


4.8%


5.3%


5.1%


5.6%



Fleet vehicles


(0.8%)


0.6%


(0.5%)


2.1%



Total new vehicles


4.8%


5.2%


5.0%


5.6%



Used vehicles


6.4%


7.1%


6.5%


6.8%



Wholesale vehicles


(6.5%)


(2.6%)


(4.4%)


(2.0%)



Parts, service and collision repair


48.4%


47.7%


48.7%


48.0%



Finance, insurance and other


100.0%


100.0%


100.0%


100.0%



Overall gross margin


14.4%


14.5%


14.7%


14.9%













SG&A Expenses (Continuing Operations):










Compensation


$                  167,489


$                  163,230


$             497,158


$             483,493



Advertising


15,470


14,045


46,160


42,027



Rent


18,558


18,145


55,058


55,324



Other


78,524


74,724


237,188


222,187



Total SG&A expenses


$                  280,041


$                  270,144


$             835,564


$             803,031



SG&A expenses as % of gross profit


77.7%


79.1%


79.5%


78.9%













Operating Margin %


2.5%


2.4%


2.1%


2.5%













Unit Data (Continuing Operations):










New retail units


36,891


36,301


102,901


101,177



Fleet units


602


473


1,244


2,133



Total new units


37,493


36,774


104,145


103,310



Used units


30,467


27,536


88,903


83,707



Wholesale units


7,787


7,916


23,574


23,034












 

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)




Per Share Data


































Three Months Ended September 30, 2015






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


50,456


$     27,103




$       (598)




$     26,505




Effect of participating securities:
















Non-vested restricted stock
















and stock units




(13)




-




(13)




Basic earnings (loss) and shares


50,456


$     27,090


$       0.54


$       (598)


$      (0.01)


$     26,492


$       0.53


Effect of dilutive securities:
















Stock compensation plans


313














Diluted earnings (loss) and shares  (1)


50,769


$     27,090


$       0.53


$       (598)


$      (0.01)


$     26,492


$       0.52


































(1) Expenses attributable to EchoPark® operations were $0.04 per fully diluted share in the three months ended September 30, 2015. 






































Three 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


52,070


$     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):
















Gain on disposal




$      (1,953)


$      (0.04)


$             -


$           -


$      (1,953)


$      (0.04)


Impairment charges




126


-


-


-


126


-


Storm damage and other




1,317


0.03


-


-


1,317


0.03


Lease exit adjustments




-


-


(845)


(0.02)


(845)


(0.02)


Total adjustments




$         (510)


$      (0.01)


$       (845)


$      (0.02)


$      (1,355)


$      (0.03)


















Adjusted:
















Earnings (loss) and 
















Diluted earnings (loss) per share (2)




$     24,047


$       0.46


$       (690)


$      (0.02)


$     23,357


$       0.44


















(2) Expenses attributable to EchoPark® operations were $0.04 per fully diluted share in the three months ended September 30, 2014. 



































Sonic Automotive, Inc.

Results of Operations (Unaudited)



Per Share Data


































Nine Months Ended September 30, 2015






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


50,697


$     56,584




$    (1,331)




$     55,253




Effect of participating securities:
















Non-vested restricted stock
















and stock units




(27)




-




(27)




Basic earnings (loss) and shares


50,697


$     56,557


$       1.12


$    (1,331)


$      (0.03)


$     55,226


$       1.09


Effect of dilutive securities:
















Stock compensation plans


389














Diluted earnings (loss) and shares


51,086


$     56,557


$       1.11


$    (1,331)


$      (0.03)


$     55,226


$       1.08


















Adjustments (net of tax):
















Gain on disposal




$         (583)


$      (0.01)


$             -


$           -


$         (583)


$      (0.01)


Impairment charges




10,166


0.20


-


-


10,166


0.20


Storm damage and other




3,132


0.06


-


-


3,132


0.06


Total adjustments




$     12,715


$       0.25


$             -


$           -


$     12,715


$       0.25


















Adjusted:
















Earnings (loss) and 
















Diluted earnings (loss) per share (3)




$     69,299


$       1.36


$    (1,331)


$      (0.03)


$     67,968


$       1.33


















(3) Expenses attributable to EchoPark® operations were $0.15 per fully diluted share in the nine months ended September 30, 2015. 






































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):
















Gain on disposal




$      (6,400)


$      (0.12)


$             -


$           -


$      (6,400)


$      (0.12)


Impairment charges




126


-


-


-


126


-


Storm damage and other




2,158


0.04


-


-


2,158


0.04


Lease exit adjustments




-


-


(845)


(0.01)


(845)


(0.01)


Total adjustments




$      (4,116)


$      (0.08)


$       (845)


$      (0.01)


$      (4,961)


$      (0.09)


















Adjusted:
















Earnings (loss) and 
















Diluted earnings (loss) per share (4)




$     67,486


$       1.27


$    (1,356)


$      (0.02)


$     66,130


$       1.25


















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



































 

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)




New Vehicles
























Three Months Ended September 30,


Better / (Worse)





2015


2014


Change


% Change





(In thousands, except units and per unit data)



Reported:










Revenue


$          1,368,029


$          1,327,837


$               40,192


3.0%



Gross profit


$               65,435


$               69,026


$               (3,591)


(5.2%)



Unit sales


37,493


36,774


719


2.0%



Revenue per unit


$               36,488


$               36,108


$                    380


1.1%



Gross profit per unit


$                 1,745


$                 1,877


$                  (132)


(7.0%)



Gross profit as a % of revenue


4.8%


5.2%


(40)


bps















Nine Months Ended September 30,


Better / (Worse)





2015


2014


Change


% Change





(In thousands, except units and per unit data)



Reported:










Revenue


$          3,865,639


$          3,773,234


$               92,405


2.4%



Gross profit


$             193,720


$             209,892


$             (16,172)


(7.7%)



Unit sales


104,145


103,310


835


0.8%



Revenue per unit


$               37,118


$               36,523


$                    595


1.6%



Gross profit per unit


$                 1,860


$                 2,032


$                  (172)


(8.5%)



Gross profit as a % of revenue


5.0%


5.6%


(60)


bps















Three Months Ended September 30,


Better / (Worse)





2015


2014


Change


% Change





(In thousands, except units and per unit data)



Same Store:










Revenue


$          1,357,281


$          1,307,800


$               49,481


3.8%



Gross profit


$               64,860


$               67,826


$               (2,966)


(4.4%)



Unit sales


37,147


36,143


1,004


2.8%



Revenue per unit


$               36,538


$               36,184


$                    354


1.0%



Gross profit per unit


$                 1,746


$                 1,877


$                  (131)


(7.0%)



Gross profit as a % of revenue


4.8%


5.2%


(40)


bps















Nine Months Ended September 30,


Better / (Worse)





2015


2014


Change


% Change





(In thousands, except units and per unit data)



Same Store:










Revenue


$          3,830,202


$          3,670,736


$             159,466


4.3%



Gross profit


$             192,086


$             204,223


$             (12,137)


(5.9%)



Unit sales


103,058


100,350


2,708


2.7%



Revenue per unit


$               37,165


$               36,579


$                    586


1.6%



Gross profit per unit


$                 1,864


$                 2,035


$                  (171)


(8.4%)



Gross profit as a % of revenue


5.0%


5.6%


(60)


bps












 

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)



Used Vehicles
























Three Months Ended September 30,


Better / (Worse)





2015


2014


Change


% Change





(In thousands, except units and per unit data)



Reported:










Revenue


$             652,058


$             583,570


$               68,488


11.7%



Gross profit


$               41,730


$               41,245


$                    485


1.2%



Unit sales


30,467


27,536


2,931


10.6%



Revenue per unit


$               21,402


$               21,193


$                    209


1.0%



Gross profit per unit


$                 1,370


$                 1,498


$                  (128)


(8.5%)



Gross profit as a % of revenue


6.4%


7.1%


(70)


bps















Nine Months Ended September 30,


Better / (Worse)





2015


2014


 Change


% Change





(In thousands, except units and per unit data)



Reported:










Revenue


$          1,904,594


$          1,747,254


$             157,340


9.0%



Gross profit


$             123,271


$             119,412


$                 3,859


3.2%



Unit sales


88,903


83,707


5,196


6.2%



Revenue per unit


$               21,423


$               20,873


$                    550


2.6%



Gross profit per unit


$                 1,387


$                 1,427


$                    (40)


(2.8%)



Gross profit as a % of revenue


6.5%


6.8%


(30)


bps















Three Months Ended September 30,


Better / (Worse)





2015


2014


 Change


% Change





(In thousands, except units and per unit data)



Same Store:










Revenue


$             625,760


$             571,295


$               54,465


9.5%



Gross profit


$               40,288


$               40,816


$                  (528)


(1.3%)



Unit sales


29,173


26,902


2,271


8.4%



Revenue per unit


$               21,450


$               21,236


$                    214


1.0%



Gross profit per unit


$                 1,381


$                 1,517


$                  (136)


(9.0%)



Gross profit as a % of revenue


6.4%


7.1%


(70)


bps















Nine Months Ended September 30,


Better / (Worse)





2015


2014


 Change


% Change





(In thousands, except units and per unit data)



Same Store:










Revenue


$          1,831,379


$          1,689,958


$             141,421


8.4%



Gross profit


$             119,184


$             116,749


$                 2,435


2.1%



Unit sales


85,225


80,900


4,325


5.3%



Revenue per unit


$               21,489


$               20,889


$                    600


2.9%



Gross profit per unit


$                 1,398


$                 1,443


$                    (45)


(3.1%)



Gross profit as a % of revenue


6.5%


6.9%


(40)


bps












 

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)



Wholesale Vehicles
























Three Months Ended September 30,


Better / (Worse)





2015


2014


Change


% Change





(In thousands, except units and per unit data)



Reported:











Revenue


$               37,971


$               41,433


$               (3,462)


(8.4%)



Gross profit (loss)


$               (2,481)


$               (1,086)


$               (1,395)


(128.5%)



Unit sales


7,787


7,916


(129)


(1.6%)



Revenue per unit


$                 4,876


$                 5,234


$                  (358)


(6.8%)



Gross profit (loss) per unit


$                  (319)


$                  (137)


$                  (182)


(132.8%)



Gross profit (loss) as a % of revenue


(6.5%)


(2.6%)


(390)


bps
















Nine Months Ended September 30,


Better / (Worse)





2015


2014


Change


% Change





(In thousands, except units and per unit data)



Reported:











Revenue


$             120,760


$             127,797


$               (7,037)


(5.5%)



Gross profit (loss)


$               (5,366)


$               (2,493)


$               (2,873)


(115.2%)



Unit sales


23,574


23,034


540


2.3%



Revenue per unit


$                 5,123


$                 5,548


$                  (425)


(7.7%)



Gross profit (loss) per unit


$                  (228)


$                  (108)


$                  (120)


(111.1%)



Gross profit (loss) as a % of revenue


(4.4%)


(2.0%)


(240)


bps
















Three Months Ended September 30,


Better / (Worse)





2015


2014


Change


% Change





(In thousands, except units and per unit data)



Same Store:











Revenue


$               36,803


$               40,338


$               (3,535)


(8.8%)



Gross profit (loss)


$               (2,445)


$               (1,065)


$               (1,380)


(129.6%)



Unit sales


7,463


7,750


(287)


(3.7%)



Revenue per unit


$                 4,931


$                 5,205


$                  (274)


(5.3%)



Gross profit (loss) per unit


$                  (328)


$                  (137)


$                  (191)


(139.4%)



Gross profit (loss) as a % of revenue


(6.6%)


(2.6%)


(400)


bps
















Nine Months Ended September 30,


Better / (Worse)





2015


2014


Change


% Change





(In thousands, except units and per unit data)



Same Store:











Revenue


$             117,037


$             123,910


$               (6,873)


(5.5%)



Gross profit (loss)


$               (4,969)


$               (2,396)


$               (2,573)


(107.4%)



Unit sales


22,622


22,371


251


1.1%



Revenue per unit


$                 5,174


$                 5,539


$                  (365)


(6.6%)



Gross profit (loss) per unit


$                  (220)


$                  (107)


$                  (113)


(105.6%)



Gross profit (loss) as a % of revenue


(4.2%)


(1.9%)


(230)


bps













 

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)




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






















Three Months Ended September 30,


Better / (Worse)





2015


2014


 Change


% Change



Reported:


(In thousands)



Revenue











Customer pay


$             147,308


$             141,458


$                 5,850


4.1%



Warranty


58,522


48,431


10,091


20.8%



Wholesale parts


45,832


46,983


(1,151)


(2.4%)



Internal, sublet and other


98,858


88,868


9,990


11.2%



Total


$             350,520


$             325,740


$               24,780


7.6%



Gross profit











Customer pay


$               80,588


$               77,546


$                 3,042


3.9%



Warranty


32,337


26,254


6,083


23.2%



Wholesale parts


8,045


8,122


(77)


(0.9%)



Internal, sublet and other


48,767


43,358


5,409


12.5%



Total


$             169,737


$             155,280


$               14,457


9.3%



Gross profit as a % of revenue











Customer pay


54.7%


54.8%


(10)


bps



Warranty


55.3%


54.2%


110


bps



Wholesale parts


17.6%


17.3%


30


bps



Internal, sublet and other


49.3%


48.8%


50


bps



Total


48.4%


47.7%


70


bps
















Nine Months Ended September 30,


Better / (Worse)





2015


2014


 Change


% Change



Reported:


(In thousands)



Revenue











Customer pay


$             431,479


$             427,620


$                 3,859


0.9%



Warranty


169,170


142,072


27,098


19.1%



Wholesale parts


136,693


142,071


(5,378)


(3.8%)



Internal, sublet and other


282,536


261,883


20,653


7.9%



Total


$          1,019,878


$             973,646


$               46,232


4.7%



Gross profit











Customer pay


$             236,551


$             235,151


$                 1,400


0.6%



Warranty


94,776


77,163


17,613


22.8%



Wholesale parts


24,332


24,590


(258)


(1.0%)



Internal, sublet and other


140,688


130,381


10,307


7.9%



Total


$             496,347


$             467,285


$               29,062


6.2%



Gross profit as a % of revenue











Customer pay


54.8%


55.0%


(20)


bps



Warranty


56.0%


54.3%


170


bps



Wholesale parts


17.8%


17.3%


50


bps



Internal, sublet and other


49.8%


49.8%


0


bps



Total


48.7%


48.0%


70


bps













 

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)



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






















Three Months Ended September 30,


Better / (Worse)





2015


2014


 Change


% Change



Same Store:


(In thousands)



Revenue











Customer pay


$             146,360


$             139,186


$                 7,174


5.2%



Warranty


58,128


47,460


10,668


22.5%



Wholesale parts


45,561


46,041


(480)


(1.0%)



Internal, sublet and other


96,460


87,261


9,199


10.5%



Total


$             346,509


$             319,948


$               26,561


8.3%



Gross profit











Customer pay


$               80,053


$               76,324


$                 3,729


4.9%



Warranty


32,216


25,784


6,432


24.9%



Wholesale parts


7,979


7,941


38


0.5%



Internal, sublet and other


47,440


42,418


5,022


11.8%



Total


$             167,688


$             152,467


$               15,221


10.0%



Gross profit as a % of revenue











Customer pay


54.7%


54.8%


(10)


bps



Warranty


55.4%


54.3%


110


bps



Wholesale parts


17.5%


17.2%


30


bps



Internal, sublet and other


49.2%


48.6%


60


bps



Total


48.4%


47.7%


70


bps
















Nine Months Ended September 30,


Better / (Worse)





2015


2014


 Change


% Change



Same Store:


(In thousands)



Revenue











Customer pay


$             426,683


$             415,998


$               10,685


2.6%



Warranty


167,771


137,297


30,474


22.2%



Wholesale parts


135,643


138,563


(2,920)


(2.1%)



Internal, sublet and other


274,892


254,753


20,139


7.9%



Total


$          1,004,989


$             946,611


$               58,378


6.2%



Gross profit











Customer pay


$             234,006


$             228,983


$                 5,023


2.2%



Warranty


94,108


74,684


19,424


26.0%



Wholesale parts


24,114


23,912


202


0.8%



Internal, sublet and other


136,931


126,192


10,739


8.5%



Total


$             489,159


$             453,771


$               35,388


7.8%



Gross profit as a % of revenue











Customer pay


54.8%


55.0%


(20)


bps



Warranty


56.1%


54.4%


170


bps



Wholesale parts


17.8%


17.3%


50


bps



Internal, sublet and other


49.8%


49.5%


30


bps



Total


48.7%


47.9%


80


bps













 

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)



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























Three Months Ended September 30,


Better / (Worse)





2015


2014


Change


% Change





(In thousands, except per unit data)



Reported:











Revenue


$               85,830


$               77,024


$                 8,806


11.4%



Gross profit per retail unit (excludes fleet)


$                 1,274


$                 1,207


$                      67


5.6%



























Nine Months Ended September 30,


Better / (Worse)





2015


2014


Change


% Change





(In thousands, except per unit data)



Reported:











Revenue


$             242,792


$             223,340


$               19,452


8.7%



Gross profit per retail unit (excludes fleet)


$                 1,266


$                 1,208


$                      58


4.8%
















Three Months Ended September 30,


Better / (Worse)





2015


2014


Change


% Change





(In thousands, except per unit data)



Same Store:











Revenue


$               84,052


$               75,797


$                 8,255


10.9%



Gross profit per retail unit (excludes fleet)


$                 1,279


$                 1,211


$                      68


5.6%



























Nine Months Ended September 30,


Better / (Worse)





2015


2014


Change


% Change





(In thousands, except per unit data)



Same Store:











Revenue


$             237,771


$             217,216


$               20,555


9.5%



Gross profit per retail unit (excludes fleet)


$                 1,271


$                 1,213


$                      58


4.8%













 

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)



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






















Three Months Ended September 30,


Better / (Worse)





2015


2014


 Change


% Change





(In thousands)



Reported:











Compensation


$             167,489


$             163,230


$               (4,259)


(2.6%)



Advertising


15,470


14,045


(1,425)


(10.1%)



Rent


18,558


18,145


(413)


(2.3%)



Other


78,524


74,724


(3,800)


(5.1%)



Total


$             280,041


$             270,144


$               (9,897)


(3.7%)














Total pre-tax adjustments


-


1,043







Adjusted SG&A


$             280,041


$             271,187


















SG&A expenses as a % of gross profit










Compensation


46.5%


47.8%


130


bps



Advertising


4.3%


4.1%


(20)


bps



Rent


5.2%


5.3%


10


bps



Other


21.7%


21.9%


20


bps



Total


77.7%


79.1%


140


bps














Total pre-tax adjustments


0.0%


0.3%







Adjusted SG&A as % of Gross


77.7%


79.4%




















Nine Months Ended September 30,


Better / (Worse)





2015


2014


 Change


% Change





(In thousands)



Reported:










Compensation


$             497,158


$             483,493


$             (13,665)


(2.8%)



Advertising


46,160


42,027


(4,133)


(9.8%)



Rent


55,058


55,324


266


0.5%



Other


237,188


222,187


(15,001)


(6.8%)



Total


$             835,564


$             803,031


$             (32,533)


(4.1%)













Total pre-tax adjustments


(4,183)


6,955







Adjusted SG&A


$             831,381


$             809,986


















SG&A expenses as a % of gross profit










Compensation


47.3%


47.5%


20


bps



Advertising


4.4%


4.1%


(30)


bps



Rent


5.2%


5.4%


20


bps



Other


22.6%


21.9%


(70)


bps



Total


79.5%


78.9%


(60)


bps














Total pre-tax adjustments


(0.4%)


0.7%







Adjusted SG&A as % of Gross


79.1%


79.6%

















 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sonic-automotive-inc-reports-record-earnings-300167492.html

SOURCE Sonic Automotive, Inc.