Exhibit 99.3
Sonic Automotive, Inc.
Results of Operations (unaudited)
(in thousands, except per share, unit data and percentage amounts)
For the Year Ended |
Three Months Ended |
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12/31/2005 |
12/31/2004 |
12/31/2005 |
12/31/2004 |
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Revenues |
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Retail new vehicles |
$ | 4,498,010 | $ | 4,093,679 | $ | 1,131,473 | $ | 1,079,859 | ||||||||
Fleet vehicles |
319,707 | 282,609 | 68,913 | 56,622 | ||||||||||||
Total new vehicles |
4,817,717 | 4,376,287 | 1,200,386 | 1,136,481 | ||||||||||||
Used vehicles |
1,238,586 | 1,141,431 | 305,043 | 287,574 | ||||||||||||
Wholesale vehicles |
540,977 | 481,873 | 132,351 | 118,453 | ||||||||||||
Total vehicles |
6,597,280 | 5,999,591 | 1,637,780 | 1,542,508 | ||||||||||||
Parts, service and collision repair |
1,091,172 | 994,263 | 277,806 | 257,831 | ||||||||||||
Finance, insurance and other |
196,390 | 183,728 | 48,012 | 45,000 | ||||||||||||
Total revenues |
7,884,842 | 7,177,582 | 1,963,598 | 1,845,339 | ||||||||||||
Total gross profit |
1,211,258 | 1,102,436 | 307,483 | 281,731 | ||||||||||||
SG&A expenses |
939,177 | 867,450 | 234,577 | 224,864 | ||||||||||||
Depreciation |
21,297 | 16,303 | 8,211 | 4,835 | ||||||||||||
Operating income |
250,784 | 218,683 | 64,695 | 52,032 | ||||||||||||
Interest expense, floor plan |
40,209 | 25,864 | 11,743 | 7,716 | ||||||||||||
Interest expense, other |
46,448 | 42,431 | 11,945 | 11,093 | ||||||||||||
Other income |
54 | 48 | 33 | (14 | ) | |||||||||||
Income from continuing operations before taxes |
164,181 | 150,436 | 41,040 | 33,209 | ||||||||||||
Income taxes |
62,390 | 57,152 | 15,821 | 13,929 | ||||||||||||
Income from continuing operations |
101,791 | 93,284 | 25,219 | 19,280 | ||||||||||||
Discontinued operations: |
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Loss from operations and the sale of discontinued franchises |
(13,439 | ) | (10,623 | ) | (4,317 | ) | (6,507 | ) | ||||||||
Income tax benefit |
3,509 | 3,410 | 39 | 1,840 | ||||||||||||
Loss from discontinued operations |
(9,930 | ) | (7,213 | ) | (4,278 | ) | (4,667 | ) | ||||||||
Net income |
$ | 91,861 | $ | 86,071 | $ | 20,941 | $ | 14,613 | ||||||||
Diluted: |
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Weighted average common shares outstanding |
45,533 | 45,217 | 45,578 | 45,224 | ||||||||||||
Earnings per share from continuing operations |
$ | 2.33 | $ | 2.16 | $ | 0.58 | $ | 0.45 | ||||||||
Loss per share from discontinued operations |
$ | (0.21 | ) | $ | (0.16 | ) | $ | (0.10 | ) | $ | (0.10 | ) | ||||
Earnings per share |
$ | 2.12 | $ | 2.00 | $ | 0.48 | $ | 0.35 | ||||||||
Gross Margin Data: |
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Retail new vehicles |
7.5 | % | 7.6 | % | 7.7 | % | 7.7 | % | ||||||||
Fleet vehicles |
3.0 | % | 2.8 | % | 3.4 | % | 3.0 | % | ||||||||
Total new vehicles |
7.2 | % | 7.3 | % | 7.5 | % | 7.5 | % | ||||||||
Used vehicles retail |
10.6 | % | 10.4 | % | 10.4 | % | 9.8 | % | ||||||||
Total vehicles retail |
7.9 | % | 7.9 | % | 8.1 | % | 7.9 | % | ||||||||
Parts, service and collision repair |
49.2 | % | 48.7 | % | 49.8 | % | 48.4 | % | ||||||||
Finance, insurance and other |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Overall gross margin |
15.4 | % | 15.4 | % | 15.7 | % | 15.3 | % | ||||||||
SG&A Expenses: |
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Personnel |
546,425 | 505,695 | 135,488 | 129,929 | ||||||||||||
Advertising |
64,721 | 59,258 | 15,881 | 14,746 | ||||||||||||
Facility rent |
92,620 | 78,641 | 24,713 | 20,916 | ||||||||||||
Other |
235,411 | 223,856 | 58,495 | 59,273 | ||||||||||||
Total |
939,177 | 867,450 | 234,577 | 224,864 | ||||||||||||
Unit Data: |
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New retail units |
143,757 | 134,567 | 34,277 | 34,040 | ||||||||||||
Fleet units |
14,363 | 12,420 | 3,255 | 2,458 | ||||||||||||
Total new units |
158,120 | 146,987 | 37,532 | 36,498 | ||||||||||||
Used units |
68,392 | 64,911 | 16,389 | 15,766 | ||||||||||||
Total units retailed |
226,512 | 211,898 | 53,921 | 52,264 | ||||||||||||
Wholesale units |
61,244 | 57,570 | 14,580 | 14,058 | ||||||||||||
Average price per unit: |
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New retail vehicles |
31,289 | 30,421 | 33,010 | 31,723 | ||||||||||||
Fleet vehicles |
22,259 | 22,754 | 21,171 | 23,036 | ||||||||||||
Total new vehicles |
30,469 | 29,773 | 31,983 | 31,138 | ||||||||||||
Used vehicles |
18,110 | 17,585 | 18,613 | 18,240 | ||||||||||||
Wholesale vehicles |
8,833 | 8,370 | 9,078 | 8,426 | ||||||||||||
Other Data: |
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Floorplan assistance (continuing operations) |
$ | 37,795 | $ | 36,621 | $ | 8,757 | $ | 9,197 | ||||||||
Same store revenue percentage changes: |
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New retail |
4.4 | % | -0.5 | % | ||||||||||||
Fleet |
13.4 | % | 20.3 | % | ||||||||||||
Total new |
5.0 | % | 0.6 | % | ||||||||||||
Used |
3.9 | % | 3.1 | % | ||||||||||||
Parts, service and collision repair |
3.1 | % | 2.1 | % | ||||||||||||
Finance, insurance and other |
4.1 | % | 4.4 | % | ||||||||||||
Total |
4.7 | % | 1.5 | % |
Consolidated Balance Sheet Data:
12/31/2005 |
12/31/2004 |
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ASSETS |
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Current Assets: |
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Cash |
$ | 7,566 | $ | 9,991 | ||||
Receivables, net |
396,225 | 357,403 | ||||||
Inventories |
1,016,457 | 1,024,342 | ||||||
Assets held for sale |
73,837 | 98,530 | ||||||
Construction in progress expected to be sold in sale-leaseback transactions |
95,131 | 77,285 | ||||||
Other current assets |
27,484 | 21,910 | ||||||
Total current assets |
1,616,700 | 1,589,461 | ||||||
Property and Equipment, Net |
148,267 | 134,490 | ||||||
Goodwill, Net |
1,122,538 | 1,056,924 | ||||||
Other Intangibles, Net |
88,696 | 84,777 | ||||||
Other Assets |
49,300 | 33,877 | ||||||
TOTAL ASSETS |
$ | 3,025,501 | $ | 2,899,529 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
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Current Liabilities: |
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Notes payable - floor plan - trade |
$ | 579,022 | $ | 609,422 | ||||
Notes payable - floor plan - non-trade |
410,296 | 375,127 | ||||||
Trade accounts payable |
91,101 | 88,616 | ||||||
Accrued interest |
17,378 | 15,421 | ||||||
Other accrued liabilities |
167,060 | 175,511 | ||||||
Liabilities held for sale - trade |
41,675 | 54,513 | ||||||
Liabilities held for sale - non-trade |
11,215 | 11,796 | ||||||
Current maturities of long-term debt |
2,747 | 2,970 | ||||||
Total current liabilities |
1,320,494 | 1,333,376 | ||||||
LONG-TERM DEBT |
712,311 | 668,826 | ||||||
OTHER LONG-TERM LIABILITIES |
29,479 | 28,888 | ||||||
DEFERRED INCOME TAXES |
132,419 | 98,752 | ||||||
STOCKHOLDERS EQUITY |
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Class A common stock |
403 | 397 | ||||||
Class B common stock |
121 | 121 | ||||||
Paid-in capital |
433,654 | 441,503 | ||||||
Retained earnings |
542,374 | 470,663 | ||||||
Accumulated other comprehensive income / (loss) |
20 | (1,228 | ) | |||||
Deferred compensation related to restricted stock |
(1,829 | ) | (3,408 | ) | ||||
Treasury stock, at cost |
(143,945 | ) | (138,361 | ) | ||||
Total stockholders equity |
830,798 | 769,687 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY |
$ | 3,025,501 | $ | 2,899,529 | ||||
Balance Sheet Data: |
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Current Ratio |
1.22 | 1.19 | ||||||
Debt to Total Capital, Net of Cash |
46.0 | % | 46.2 | % | ||||
LTM Return on Stockholders Equity |
11.4 | % | 11.7 | % |