Exhibit 99.1

FOR IMMEDIATE RELEASE

Sonic Automotive, Inc. Reports Record Results and Launch of EchoPark® Automotive!

Adjusted Continuing Operations Quarterly EPS of $0.63

Fourth Quarter 2014 Results

 

    Record Q4 new retail units of 34,755, up 2.2%, over the prior year quarter

 

    Record Q4 pre-owned units and gross profit of 26,406 and $37.8 million, respectively

 

    Record Q4 fixed operations gross profit of $156.3 million, up 2.4% over the prior year quarter

 

    Record Q4 total gross profit of $348.5 million, up 2.9% over the prior year quarter

 

    EchoPark® stores in Denver open for business

 

    One Sonic-One Experience launched in Charlotte

Full Year 2014 Results

 

    Retailed an annual record new retail and pre-owned units of 135,932 and 110,113, respectively

 

    Record annual pre-owned gross profit of $157.2 million

 

    Record annual fixed operations gross profit of $623.5 million

 

    Record annual total gross profit of $1.4 billion

 

    Near record pre-tax income from continuing operations of $161.7 million

CHARLOTTE, N.C. – February 24, 2015Sonic Automotive, Inc. (NYSE: SAH), one of the nation’s largest automotive retailers, today reported adjusted net income from continuing operations for the fourth quarter of 2014 of $32.5 million, or $0.63 per diluted share. Included in these adjusted amounts are pre-tax expenses of $7.1 million, or $0.08 per diluted share, related to the Company’s EchoPark® initiative and $3.8 million, or $0.05 per diluted share, related to its One Sonic-One Experience initiative.

Adjusted net income from continuing operations for the fourth quarter of 2013 was $35.6 million, or $0.67 per diluted share. Included in these adjusted amounts are pre-tax expenses of $2.2 million, or $0.03 per diluted share, related to the Company’s EchoPark® initiative and $2.1 million, or $0.02 per diluted share, related to its One Sonic-One Experience initiative.

On a GAAP basis, net income from continuing operations and related diluted earnings per share for the fourth quarter 2014 were $27.0 million and $0.52 per share, respectively, compared to $29.6 million and $0.55 per diluted share for the fourth quarter of 2013. See the accompanying tables for details of quarterly adjustments.

Sonic reported full year 2014 adjusted net income from continuing operations of $100.0 million, or $1.90 per diluted share, that includes expenses of $15.7 million, or $0.18 per diluted share, related to the Company’s EchoPark® initiative and $10.4 million, or $0.12 per diluted share, related to its One Sonic-One Experience initiative.


For the full year of 2013, Sonic reported adjusted net income from continuing operations of $108.4 million, or $2.03 per diluted share that includes expenses of $5.5 million, or $0.07 per diluted share, related to EchoPark® and $6.7 million, or $0.08 per diluted share, related its One Sonic-One Experience initiative.

On a GAAP basis, net income from continuing operations for full year of 2014 was $98.6 million, or $1.87 per diluted share, compared to full year 2013 results of $84.7 million, or $1.59 per diluted share. See the accompanying tables for details of annual adjustments.

Jeff Dyke, Sonic’s EVP of Operations, stated, “I could not be more pleased with our team’s performance in the fourth quarter and for the year. We started 2014 with a huge calendar including launching both EchoPark® and One Sonic-One Experience all in the fourth quarter of 2014. The amount of preparation and effort that went into launching these critical programs was second to none and I want to personally thank everyone for the hard work and dedication it took to successfully bring both projects to life. We look forward to sharing our progress as the projects gain momentum. Despite the time and energy dedicated to the EchoPark® and One Sonic-One Experience initiatives, our operations team was able to turn in a record breaking quarter and year. December was the biggest gross and profit month in our Company’s history for any year or store count!

We expect 2015 to be another great year as our team works diligently to deliver on our goals with EchoPark® and One Sonic-One Experience. We are confident that as the year progresses we will be able to announce our second market for both EchoPark® and One Sonic-One Experience.”

2015 Outlook

B. Scott Smith, the Company’s President, noted, “I am very pleased with the performance of our team in the fourth quarter, especially considering the various initiatives we have tasked the team with during the year. In addition to our internal initiatives, during the fourth quarter we purchased Cherry Creek Chevrolet and Land Rover of Roaring Fork, both located in the Denver, Colorado market. We have also been awarded Mercedes Benz and Audi add points during the year. The Mercedes Benz add point is located in McKinney, Texas and we believe it will be operational by the second quarter of 2016. The Audi add point is located in the Pensacola, Florida area and we expect opening this point in late 2016. The additions of these premium luxury brands will prove to augment our existing luxury brand portfolio. We are dedicated to our EchoPark®, One Sonic–One Experience and growth through acquisitions initiatives and will continue to invest in these initiatives in 2015. We expect 2015 to continue to be favorable to dealers and anticipate new vehicle industry volume to be between 16.5 million and 17.0 million units. We project diluted earnings per share from continuing operations for 2015 to be between $1.85 and $1.95 per share. Excluding the effects of EchoPark on this range, adjusted diluted earnings per share from continuing operations from our historical franchised group of stores is expected to be between $2.01 and $2.11 per share. We will have additional comments on our 2015 outlook in our earnings call later today.”

Fourth 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: 74193723

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: 74193723

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.

###

 

Contact: Heath Byrd, Chief Financial Officer (704) 566-2400
  C.G. Saffer, Vice President and Chief Accounting Officer (704) 566-2439


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.

 

     Fourth Quarter Ended December 31,     Year Ended December 31,  
     2014     2013     2014     2013  
     (In thousands, except per share and unit data)  

Revenues:

        

New retail vehicles

   $ 1,337,896      $ 1,299,444      $ 5,046,010      $ 4,819,787   

Fleet vehicles

     12,899        38,254        78,019        169,398   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total new vehicles

  1,350,795      1,337,698      5,124,029      4,989,185   

Used vehicles

  562,993      551,028      2,310,247      2,176,034   

Wholesale vehicles

  38,361      40,772      166,158      175,328   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total vehicles

  1,952,149      1,929,498      7,600,434      7,340,547   

Parts, service and collision repair

  322,924      316,888      1,296,570      1,230,178   

Finance, insurance and other, net

  76,755      68,983      300,095      272,443   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

  2,351,828      2,315,369      9,197,099      8,843,168   

Gross profit

  348,464      338,700      1,365,900      1,301,607   

Selling, general and administrative expenses

  (264,402   (254,647   (1,067,433   (1,003,125

Impairment charges

  (6,379   (9,803   (6,594   (9,872

Depreciation and amortization

  (15,213   (14,986   (58,260   (54,007
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

  62,470      59,264      233,613      234,603   

Other income (expense):

Interest expense, floor plan

  (4,852   (5,688   (18,793   (21,954

Interest expense, other, net

  (12,614   (13,183   (53,190   (55,485

Other income (expense), net

  (2   1      97      (28,143
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expense)

  (17,468   (18,870   (71,886   (105,582
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before taxes

  45,002      40,394      161,727      129,021   

Provision for income taxes - benefit (expense)

  (18,045   (10,832   (63,168   (44,343
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations

  26,957      29,562      98,559      84,678   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from discontinued operations

  (831   (1,478   (1,342   (3,060
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

$ 26,126    $ 28,084    $ 97,217    $ 81,618   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings (loss) per common share:

Earnings (loss) per share from continuing operations

$ 0.52    $ 0.55    $ 1.87    $ 1.59   

Earnings (loss) per share from discontinued operations

  (0.02   (0.02   (0.03   (0.06
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings (loss) per common share

$ 0.50    $ 0.53    $ 1.84    $ 1.53   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding

  51,834      52,974      52,563      52,941   

Gross Margin Data (Continuing Operations):

New retail vehicles

  5.9   6.3   5.7   5.9

Fleet vehicles

  1.1   2.2   1.9   2.6

Total new vehicles

  5.8   6.2   5.6   5.8

Used vehicles

  6.7   6.5   6.8   6.9

Wholesale vehicles

  (2.9 %)    (3.9 %)    (2.2 %)    (4.5 %) 

Parts, service and collision repair

  48.4   48.2   48.1   48.5

Finance, insurance and other

  100.0   100.0   100.0   100.0

Overall gross margin

  14.8   14.6   14.9   14.7

SG&A Expenses (Continuing Operations):

Compensation (4)

$ 155,382    $ 151,704    $ 638,875    $ 601,495   

Advertising

  15,409      15,327      57,437      56,609   

Rent

  18,384      17,632      73,707      73,976   

Other (5)

  75,227      69,984      297,414      271,045   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total SG&A expenses

$ 264,402    $ 254,647    $ 1,067,433    $ 1,003,125   

SG&A expenses as % of gross profit

  75.9   75.2   78.1   77.1

Operating Margin %

  2.7   2.6   2.5   2.7

Unit Data (Continuing Operations):

New retail units

  34,755      34,001      135,932      132,363   

Fleet units

  352      1,250      2,485      5,911   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total new units

  35,107      35,251      138,417      138,274   

Used units

  26,406      26,354      110,113      107,054   

Wholesale units

  6,912      6,670      29,946      29,961   


Sonic Automotive, Inc.

Results of Operations (Unaudited)

 

Per Share Data

 

     Fourth Quarter Ended December 31, 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

     51,272       $ 26,957         $ (831     $ 26,126     

Effect of participating securities:

                

Non-vested restricted stock and stock units

        (86        —            (86  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings (loss) and shares

  51,272    $ 26,871    $ 0.52    $ (831 $ (0.01 $ 26,040    $ 0.51   

Effect of dilutive securities:

Stock compensation plans

  562   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings (loss) and shares (1)

  51,834    $ 26,871    $ 0.52    $ (831 $ (0.02 $ 26,040    $ 0.50   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjustments (net of tax):

Fire and severe storm damage

$ 594    $ 0.01    $ —      $ —      $ 594    $ 0.01   

Legal and other

  355      —        —        —        355      —     

Impairment charges

  3,943      0.08      —        —        3,943      0.08   

Gain on disposal of franchises

  (157   —        —        —        (157   —     

Permanent tax difference from disposals

  853      0.02      —        853      0.02   
     

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total adjustments

$ 5,588    $ 0.11    $ —      $ —      $ 5,588    $ 0.11   

Adjusted:

Earnings (loss) and

       

 

 

      

 

 

     

 

 

 

Diluted earnings (loss) per share

$ 32,545    $ 0.63    $ (831 $ (0.02 $ 31,714    $ 0.61   
       

 

 

      

 

 

     

 

 

 

 

(1) Expenses attributable to the EchoPark® initiative were $0.08 per fully diluted share in the fourth quarter of 2014.

 

     Fourth Quarter Ended December 31, 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

     52,492       $ 29,562         $ (1,478     $ 28,084     

Effect of participating securities:

                

Non-vested restricted stock and stock units

        (208        —            (208  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings (loss) and shares

  52,492    $ 29,354    $ 0.56    $ (1,478 $ (0.03 $ 27,876    $ 0.53   

Effect of dilutive securities:

Stock compensation plans

  482   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings (loss) and shares (2)

  52,974    $ 29,354    $ 0.55    $ (1,478 $ (0.02 $ 27,876    $ 0.53   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjustments (net of tax):

Impairment Charges

$ 6,022    $ 0.11    $ —      $ —      $ 6,022    $ 0.11   

Effect of two-class method & rounding

  —        0.01      —        (0.01   —        —     
     

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total adjustments

$ 6,022    $ 0.12    $ —      $ (0.01 $ 6,022    $ 0.11   

Adjusted:

Earnings (loss) and

       

 

 

      

 

 

     

 

 

 

Diluted earnings (loss) per share

$ 35,584    $ 0.67    $ (1,478 $ (0.03 $ 34,106    $ 0.64   
       

 

 

      

 

 

     

 

 

 

 

(2) Expenses attributable to the EchoPark® initiative were $0.03 per fully diluted share in the fourth quarter of 2013.


Sonic Automotive, Inc.

Results of Operations (Unaudited)

 

Per Share Data

 

     Year Ended December 31, 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

     52,065       $ 98,559        $ (1,342     $ 97,217     

Effect of participating securities:

               

Non-vested restricted stock and stock units

        (311       —            (311  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings (loss) and shares

  52,065    $ 98,248    $ 1.89    $ (1,342 $ (0.03 $ 96,906    $ 1.86   

Effect of dilutive securities:

Stock compensation plans

  498   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings (loss) and shares (3)

  52,563    $ 98,248    $ 1.87    $ (1,342 $ (0.03 $ 96,906    $ 1.84   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjustments (net of tax):

Fire and severe storm damage

$ 2,685    $ 0.05    $ —      $ —      $ 2,685    $ 0.05   

Legal and other

  749      0.01      —        —        749      0.01   

Impairment charges

  4,459      0.08      —        —        4,459      0.08   

Gain on disposal of franchises

  (7,273   (0.14   —        —        (7,273   (0.14

Permanent tax difference from disposals

  853      0.02      —        —        853      0.02   

Lease exit adjustments

  —        —        (844   (0.02   (844   (0.02

Effect of two-class method & rounding

  —        0.01      —        0.01      —        0.02   
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total adjustments

$ 1,473    $ 0.03    $ (844 $ (0.01 $ 629    $ 0.02   

Adjusted:

Earnings (loss) and

       

 

 

     

 

 

     

 

 

 

Diluted earnings (loss) per share

$ 100,032    $ 1.90    $ (2,186 $ (0.04 $ 97,846    $ 1.86   
       

 

 

     

 

 

     

 

 

 

 

(3) Expenses attributable to the EchoPark® initiative were $0.18 per fully diluted share in the year ended December 31, 2014.

 

     Year Ended December 31, 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

     52,556       $ 84,678         $ (3,060     $ 81,618     

Effect of participating securities:

                

Non-vested restricted stock and stock units

        (601        —            (601  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings (loss) and shares

  52,556    $ 84,077    $ 1.60    $ (3,060 $ (0.06 $ 81,017    $ 1.54   

Effect of dilutive securities:

Stock compensation plans

  385   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings (loss) and shares (4)

  52,941    $ 84,077    $ 1.59    $ (3,060 $ (0.06 $ 81,017    $ 1.53   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjustments (net of tax):

Impairment Charges

$ 6,022    $ 0.11    $ —      $ —      $ 6,022    $ 0.11   

Double-carry interest

  17,704      0.33      —        —        17,704      0.33   

Effect of two-class method & rounding

  —        —        —        0.01      —        0.01   
     

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total adjustments

$ 23,726    $ 0.44    $ —      $ 0.01    $ 23,726    $ 0.45   

Adjusted:

Earnings (loss) and

       

 

 

      

 

 

     

 

 

 

Diluted earnings (loss) per share

$ 108,404    $ 2.03    $ (3,060 $ (0.05 $ 105,344    $ 1.98   
       

 

 

      

 

 

     

 

 

 

 

(4) Expenses attributable to the EchoPark® initiative were $0.07 per fully diluted share in the year ended December 31, 2014.


Sonic Automotive, Inc.

Results of Operations (Unaudited)

 

New Vehicles

 

     Fourth Quarter Ended December 31,     Better / (Worse)  
     2014     2013     Change     % Change  
     (In thousands, except units and per unit data)  

Reported:

        

Revenue

   $ 1,350,795      $ 1,337,698      $ 13,097        1.0

Gross profit

   $ 78,734      $ 82,936      $ (4,202     (5.1 %) 

Unit sales

     35,107        35,251        (144     (0.4 %) 

Revenue per unit

   $ 38,477      $ 37,948      $ 529        1.4

Gross profit per unit

   $ 2,243      $ 2,353      $ (110     (4.7 %) 

Gross profit as a % of revenue

     5.8     6.2     (40 ) bps   
     Year Ended December 31,     Better / (Worse)  
     2014     2013     Change     % Change  
     (In thousands, except units and per unit data)  

Reported:

        

Revenue

   $ 5,124,029      $ 4,989,185      $ 134,844        2.7

Gross profit

   $ 288,626      $ 289,603      $ (977     (0.3 %) 

Unit sales

     138,417        138,274        143        0.1

Revenue per unit

   $ 37,019      $ 36,082      $ 937        2.6

Gross profit per unit

   $ 2,085      $ 2,094      $ (9     (0.4 %) 

Gross profit as a % of revenue

     5.6     5.8     (20 ) bps   
     Fourth Quarter Ended December 31,     Better / (Worse)  
     2014     2013     Change     % Change  
     (In thousands, except units and per unit data)  

Same Store:

        

Revenue

   $ 1,338,612      $ 1,292,378      $ 46,234        3.6

Gross profit

   $ 78,136      $ 80,604      $ (2,468     (3.1 %) 

Unit sales

     34,723        34,006        717        2.1

Revenue per unit

   $ 38,551      $ 38,004      $ 547        1.4

Gross profit per unit

   $ 2,250      $ 2,370      $ (120     (5.1 %) 

Gross profit as a % of revenue

     5.8     6.2     (40 ) bps   
     Year Ended December 31,     Better / (Worse)  
     2014     2013     Change     % Change  
     (In thousands, except units and per unit data)  

Same Store:

        

Revenue

   $ 4,953,201      $ 4,818,937      $ 134,264        2.8

Gross profit

   $ 278,938      $ 280,225      $ (1,287     (0.5 %) 

Unit sales

     134,059        133,578        481        0.4

Revenue per unit

   $ 36,948      $ 36,076      $ 872        2.4

Gross profit per unit

   $ 2,081      $ 2,098      $ (17     (0.8 %) 

Gross profit as a % of revenue

     5.6     5.8     (20 ) bps   


Sonic Automotive, Inc.

Results of Operations (Unaudited)

 

Used Vehicles

 

     Fourth Quarter Ended December 31,     Better / (Worse)  
     2014     2013     Change     % Change  
     (In thousands, except units and per unit data)  

Reported:

        

Revenue

   $ 562,993      $ 551,028      $ 11,965        2.2

Gross profit

   $ 37,834      $ 35,784      $ 2,050        5.7

Unit sales

     26,406        26,354        52        0.2

Revenue per unit

   $ 21,321      $ 20,909      $ 412        2.0

Gross profit per unit

   $ 1,433      $ 1,358      $ 75        5.5

Gross profit as a % of revenue

     6.7     6.5     20   bps   
     Year Ended December 31,     Better / (Worse)  
     2014     2013     Change     % Change  
     (In thousands, except units and per unit data)  

Reported:

        

Revenue

   $ 2,310,247      $ 2,176,034      $ 134,213        6.2

Gross profit

   $ 157,246      $ 150,400      $ 6,846        4.6

Unit sales

     110,113        107,054        3,059        2.9

Revenue per unit

   $ 20,981      $ 20,327      $ 654        3.2

Gross profit per unit

   $ 1,428      $ 1,405      $ 23        1.6

Gross profit as a % of revenue

     6.8     6.9     (10 ) bps   
     Fourth Quarter Ended December 31,     Better / (Worse)  
     2014     2013     Change     % Change  
     (In thousands, except units and per unit data)  

Same Store:

        

Revenue

   $ 551,576      $ 529,846      $ 21,730        4.1

Gross profit

   $ 36,945      $ 34,255      $ 2,690        7.9

Unit sales

     25,784        25,322        462        1.8

Revenue per unit

   $ 21,392      $ 20,924      $ 468        2.2

Gross profit per unit

   $ 1,433      $ 1,353      $ 80        5.9

Gross profit as a % of revenue

     6.7     6.5     20   bps   
     Year Ended December 31,     Better / (Worse)  
     2014     2013     Change     % Change  
     (In thousands, except units and per unit data)  

Same Store:

        

Revenue

   $ 2,200,362      $ 2,085,069      $ 115,293        5.5

Gross profit

   $ 150,990      $ 144,253      $ 6,737        4.7

Unit sales

     105,057        102,597        2,460        2.4

Revenue per unit

   $ 20,944      $ 20,323      $ 621        3.1

Gross profit per unit

   $ 1,437      $ 1,406      $ 31        2.2

Gross profit as a % of revenue

     6.9     6.9     0   bps   


Sonic Automotive, Inc.

Results of Operations (Unaudited)

 

Wholesale Vehicles

 

     Fourth Quarter Ended December 31,     Better / (Worse)  
     2014     2013     Change     % Change  
     (In thousands, except units and per unit data)  

Reported:

        

Revenue

   $ 38,361      $ 40,772      $ (2,411     (5.9 %) 

Gross profit (loss)

   $ (1,122   $ (1,589   $ 467        29.4

Unit sales

     6,912        6,670        242        3.6

Revenue per unit

   $ 5,550      $ 6,113      $ (563     (9.2 %) 

Gross profit (loss) per unit

   $ (162   $ (238   $ 76        31.9

Gross profit (loss) as a % of revenue

     (2.9 %)      (3.9 %)      100  bps   
     Year Ended December 31,     Better / (Worse)  
     2014     2013     Change     % Change  
     (In thousands, except units and per unit data)  

Reported:

        

Revenue

   $ 166,158      $ 175,328      $ (9,170     (5.2 %) 

Gross profit (loss)

   $ (3,616   $ (7,931   $ 4,315        54.4

Unit sales

     29,946        29,961        (15     (0.1 %) 

Revenue per unit

   $ 5,549      $ 5,852      $ (303     (5.2 %) 

Gross profit (loss) per unit

   $ (121   $ (265   $ 144        54.3

Gross profit (loss) as a % of revenue

     (2.2 %)      (4.5 %)      230  bps   
     Fourth Quarter Ended December 31,     Better / (Worse)  
     2014     2013     Change     % Change  
     (In thousands, except units and per unit data)  

Same Store:

        

Revenue

   $ 37,572      $ 39,745      $ (2,173     (5.5 %) 

Gross profit (loss)

   $ (939   $ (1,493   $ 554        37.1

Unit sales

     6,803        6,478        325        5.0

Revenue per unit

   $ 5,523      $ 6,135      $ (612     (10.0 %) 

Gross profit (loss) per unit

   $ (138   $ (230   $ 92        40.0

Gross profit (loss) as a % of revenue

     (2.5 %)      (3.8 %)      130  bps   
     Year Ended December 31,     Better / (Worse)  
     2014     2013     Change     % Change  
     (In thousands, except units and per unit data)  

Same Store:

        

Revenue

   $ 159,263      $ 170,489      $ (11,226     (6.6 %) 

Gross profit (loss)

   $ (3,175   $ (7,305   $ 4,130        56.5

Unit sales

     28,885        29,092        (207     (0.7 %) 

Revenue per unit

   $ 5,514      $ 5,860      $ (346     (5.9 %) 

Gross profit (loss) per unit

   $ (110   $ (251   $ 141        56.2

Gross profit (loss) as a % of revenue

     (2.0 %)      (4.3 %)      230  bps   


Sonic Automotive, Inc.

Results of Operations (Unaudited)

 

Parts, Service and Collision Repair (“Fixed Operations”)

 

     Fourth Quarter Ended December 31,     Better / (Worse)  
     2014     2013     Change     % Change  
     (In thousands)  

Reported:

        

Revenue

        

Customer pay

   $ 137,524      $ 139,443      $ (1,919     (1.4 %) 

Warranty

     52,396        50,572        1,824        3.6

Wholesale parts

     46,615        44,468        2,147        4.8

Internal, sublet and other

     86,389        82,405        3,984        4.8
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

$ 322,924    $ 316,888    $ 6,036      1.9
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

Customer pay

$ 74,734    $ 76,315    $ (1,581   (2.1 %) 

Warranty

  29,135      26,694      2,441      9.1

Wholesale parts

  8,042      8,084      (42   (0.5 %) 

Internal, sublet and other

  44,353      41,493      2,860      6.9
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

$ 156,264    $ 152,586    $ 3,678      2.4
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit as a % of revenue

Customer pay

  54.3   54.7   (40 ) bps 

Warranty

  55.6   52.8   280   bps 

Wholesale parts

  17.3   18.2   (90 ) bps 

Internal, sublet and other

  51.3   50.4   90   bps 
  

 

 

   

 

 

   

 

 

   

Total

  48.4   48.2   20   bps 
     Year Ended December 31,     Better / (Worse)  
     2014     2013     Change     % Change  
     (In thousands)  

Reported:

        

Revenue

        

Customer pay

   $ 565,144      $ 546,695      $ 18,449        3.4

Warranty

     194,468        188,061        6,407        3.4

Wholesale parts

     188,687        169,338        19,349        11.4

Internal, sublet and other

     348,271        326,084        22,187        6.8
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

$ 1,296,570    $ 1,230,178    $ 66,392      5.4
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

Customer pay

$ 309,885    $ 300,800    $ 9,085      3.0

Warranty

  106,298      101,351      4,947      4.9

Wholesale parts

  32,633      31,242      1,391      4.5

Internal, sublet and other

  174,733      163,699      11,034      6.7
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

$ 623,549    $ 597,092    $ 26,457      4.4
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit as a % of revenue

Customer pay

  54.8   55.0   (20 ) bps 

Warranty

  54.7   53.9   80   bps 

Wholesale parts

  17.3   18.4   (110 ) bps 

Internal, sublet and other

  50.2   50.2   0   bps 
  

 

 

   

 

 

   

 

 

   

Total

  48.1   48.5   (40 ) bps 


Sonic Automotive, Inc.

Results of Operations (Unaudited)

 

Parts, Service and Collision Repair (“Fixed Operations”)

 

     Fourth Quarter Ended December 31,     Better / (Worse)  
     2014     2013     Change     % Change  
     (In thousands)  

Same Store:

        

Revenue

        

Customer pay

   $ 135,913      $ 134,788      $ 1,125        0.8

Warranty

     51,832        48,565        3,267        6.7

Wholesale parts

     46,099        43,107        2,992        6.9

Internal, sublet and other

     84,174        79,693        4,481        5.6
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

$ 318,018    $ 306,153    $ 11,865      3.9
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

Customer pay

$ 73,891    $ 73,824    $ 67      0.1

Warranty

  28,861      25,736      3,125      12.1

Wholesale parts

  7,941      7,814      127      1.6

Internal, sublet and other

  43,043      39,877      3,166      7.9
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

$ 153,736    $ 147,251    $ 6,485      4.4
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit as a % of revenue

Customer pay

  54.4   54.8   (40 ) bps 

Warranty

  55.7   53.0   270   bps 

Wholesale parts

  17.2   18.1   (90 ) bps 

Internal, sublet and other

  51.1   50.0   110   bps 
  

 

 

   

 

 

   

 

 

   

Total

  48.3   48.1   20   bps 
     Year Ended December 31,     Better / (Worse)  
     2014     2013     Change     % Change  
     (In thousands)  

Same Store:

        

Revenue

        

Customer pay

   $ 538,930      $ 527,034      $ 11,896        2.3

Warranty

     185,526        180,125        5,401        3.0

Wholesale parts

     181,058        163,979        17,079        10.4

Internal, sublet and other

     334,166        314,529        19,637        6.2
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

$ 1,239,680    $ 1,185,667    $ 54,013      4.6
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

Customer pay

$ 296,160    $ 290,238    $ 5,922      2.0

Warranty

  101,689      97,581      4,108      4.2

Wholesale parts

  30,804      30,143      661      2.2

Internal, sublet and other

  166,909      157,123      9,786      6.2
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

$ 595,562    $ 575,085    $ 20,477      3.6
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit as a % of revenue

Customer pay

  55.0   55.1   (10 ) bps 

Warranty

  54.8   54.2   60   bps 

Wholesale parts

  17.0   18.4   (140 ) bps 

Internal, sublet and other

  49.9   50.0   (10 ) bps 
  

 

 

   

 

 

   

 

 

   

Total

  48.0   48.5   (50 ) bps 


Sonic Automotive, Inc.

Results of Operations (Unaudited)

 

Finance, Insurance and Other, Net (“F&I”)

 

     Fourth Quarter Ended December 31,      Better / (Worse)  
     2014      2013      Change      % Change  
     (In thousands, except per unit data)  

Reported:

           

Revenue

   $ 76,755       $ 68,983       $ 7,772         11.3

Gross profit per retail unit (excludes fleet)

   $ 1,255       $ 1,143       $ 112         9.8
     Year Ended December 31,      Better / (Worse)  
     2014      2013      Change      % Change  
     (In thousands, except per unit data)  

Reported:

           

Revenue

   $ 300,095       $ 272,443       $ 27,652         10.1

Gross profit per retail unit (excludes fleet)

   $ 1,220       $ 1,138       $ 82         7.2
     Fourth Quarter Ended December 31,      Better / (Worse)  
     2014      2013      Change      % Change  
     (In thousands, except per unit data)  

Same Store:

           

Revenue

   $ 75,745       $ 66,476       $ 9,269         13.9

Gross profit per retail unit (excludes fleet)

   $ 1,259       $ 1,145       $ 114         10.0
     Year Ended December 31,      Better / (Worse)  
     2014      2013      Change      % Change  
     (In thousands, except per unit data)  

Same Store:

           

Revenue

   $ 289,833       $ 263,038       $ 26,795         10.2

Gross profit per retail unit (excludes fleet)

   $ 1,225       $ 1,142       $ 83         7.3


Sonic Automotive, Inc.

Results of Operations (Unaudited)

 

Selling, General and Administrative (“SG&A”) Expenses

 

     Fourth Quarter Ended December 31,     Better / (Worse)  
     2014     2013     Change     % Change  
     (In thousands)  

Reported:

        

Compensation

   $ 155,382      $ 151,704      $ (3,678     (2.4 %) 

Advertising

     15,409        15,327        (82     (0.5 %) 

Rent

     18,384        17,632        (752     (4.3 %) 

Other

     75,227        69,984        (5,243     (7.5 %) 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

$ 264,402    $ 254,647    $ (9,755   (3.8 %) 
  

 

 

   

 

 

   

 

 

   

 

 

 

SG&A expenses as a % of gross profit

Compensation

  44.6   44.8   20   bps 

Advertising

  4.4   4.5   10   bps 

Rent

  5.3   5.2   (10 ) bps 

Other

  21.6   20.7   (90 ) bps 
  

 

 

   

 

 

   

 

 

   

Total

  75.9   75.2   (70 ) bps 
     Year Ended December 31,     Better / (Worse)  
     2014     2013     Change     % Change  
     (In thousands)  

Reported:

        

Compensation

   $ 638,875      $ 601,495      $ (37,380     (6.2 %) 

Advertising

     57,437        56,609        (828     (1.5 %) 

Rent

     73,707        73,976        269        0.4

Other

     297,414        271,045        (26,369     (9.7 %) 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

$ 1,067,433    $ 1,003,125    $ (64,308   (6.4 %) 
  

 

 

   

 

 

   

 

 

   

 

 

 

SG&A expenses as a % of gross profit

Compensation

  46.8   46.2   (60 ) bps 

Advertising

  4.2   4.3   10   bps 

Rent

  5.4   5.7   30   bps 

Other

  21.7   20.9   (80 ) bps 
  

 

 

   

 

 

   

 

 

   

Total

  78.1   77.1   (100 ) bps