Exhibit 99.1
FOR IMMEDIATE RELEASE
Sonic Automotive, Inc. Reports Quarterly Adjusted Continuing Operations Earnings per Share of $0.46
All-Time Record Gross Profit and Achieved 100 Pre-Owned Retail Unit Sales per Store per Month
Second Quarter 2015 Results
| • | Record Q2 total gross profit of $355.6 million, up 2.5% over the prior year quarter |
| • | Achieved milestone of retailing 100 pre-owned units per store per month for the quarter on a same store basis |
| • | All-time record quarterly pre-owned retail sales of 30,301 units, up 6.3% over the prior year quarter |
| • | All-time record quarterly fixed operations gross profit of $170.2 million, up 6.5% over the prior year quarter |
| • | Echo Park® stores retail 881 units, up 221 units, or 33.5%, from the prior quarter |
CHARLOTTE, N.C. – July 20, 2015 – Sonic Automotive, Inc. (NYSE: SAH), one of the nation’s largest automotive retailers, today reported adjusted net income from continuing operations for the second quarter of 2015 of $23.4 million, or $0.46 per diluted share. Included in these adjusted amounts are pre-tax expenses of $4.1 million, or $0.05 per diluted share, related to EchoPark® operations.
Adjusted net income from continuing operations for the second quarter of 2014 was $23.5 million, or $0.44 per diluted share. Included in these adjusted amounts are pre-tax expenses of $3.2 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 second quarter of 2015 were $15.1 million and $0.30 per share, respectively, and net income from continuing operations and related diluted earnings per share for the second quarter of 2014 were $27.1 million and $0.51 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 President, noted, “I’m proud of our operations team for achieving the lofty goal of retailing 100 pre-owned vehicles per store per month. We have had quarters in the past when we approached achieving this metric and several months where we surpassed this metric, but it had never been achieved on a quarterly basis. Generating this type of retail activity fuels our fixed operations and F&I areas where we are most profitable.”
“We also worked to build our fixed operations business in the quarter. In addition to the benefits we experienced through the reconditioning work performed to achieve the sale of 100 pre-owned vehicles per store per month, we were able to grow overall same store fixed operations gross profit $13.1 million, or 8.5%, compared to the prior year quarter. Fixed operations growth was achieved in our customer pay, warranty and internal categories. This type of internal growth
strategy is central to our One Sonic-One Experience (OSOE) initiative which is intended to grow the top-line revenue categories, generate retail activity, and realize benefits over multiple gross profit streams.”
Jeff Dyke, Sonic’s EVP of Operations, stated, “We had another very busy quarter at Sonic Automotive. From a franchise store perspective, we executed our playbook and delivered another solid operating performance allowing our team to leverage this performance while we build on our OSOE strategy and our EchoPark® business model. I am very excited about our pre-owned volume and the continued focus and execution from our team as they achieved 100 units per store per month for the quarter. Our focus on our fixed operations business, and in particular our customer pay business, is beginning to pay off and the result showed in the quarter. Warranty business was also robust.”
“Our OSOE strategy continues to make progress. The associated technology’s performance is working very well and as a result, we have decided to move ahead with the rollout of several of its technology applications that will benefit our guests and associates. Our proprietary CRM, desking and appraisal tools will be added to our stores over the next year and a half in the first wave of three planned waves that will ultimately result in the complete rollout of OSOE. We will roll out our F&I and pricing tools as part of the OSOE strategy once we are comfortable with our performance in the Charlotte test market.”
“EchoPark® made great strides again this quarter as we ramped up and executed our business plan. We are meeting our goals and have started the acquisition of properties for our next market. We plan to begin construction in this next market before the end of this year. We also plan on adding an additional five locations to our Denver market over the next twelve months. Our associates have created a culture in the stores which allows them to offer our customers an easy, transparent shopping experience and, as a result, our guest feedback is overwhelmingly positive. We expect our initial neighborhood locations in Denver will become cash flow positive prior to the end of this year and we have developed a next generation neighborhood store that further improves our guest experience and operational efficiency.”
Second 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: 76953618
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: 76953618
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.
###
| 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.
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| (In thousands, except per share and unit data) | ||||||||||||||||
| Revenues: |
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| New retail vehicles |
$ | 1,285,632 | $ | 1,283,231 | $ | 2,475,847 | $ | 2,395,521 | ||||||||
| Fleet vehicles |
9,656 | 15,546 | 21,763 | 49,876 | ||||||||||||
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| Total new vehicles |
1,295,288 | 1,298,777 | 2,497,610 | 2,445,397 | ||||||||||||
| Used vehicles |
658,794 | 603,868 | 1,252,536 | 1,163,684 | ||||||||||||
| Wholesale vehicles |
41,131 | 44,765 | 82,789 | 86,363 | ||||||||||||
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| Total vehicles |
1,995,213 | 1,947,410 | 3,832,935 | 3,695,444 | ||||||||||||
| Parts, service and collision repair |
346,164 | 329,134 | 669,358 | 647,905 | ||||||||||||
| Finance, insurance and other, net |
82,363 | 76,736 | 156,963 | 146,317 | ||||||||||||
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| Total revenues |
2,423,740 | 2,353,280 | 4,659,256 | 4,489,666 | ||||||||||||
| Gross profit |
355,554 | 346,947 | 690,513 | 675,947 | ||||||||||||
| Selling, general and administrative expenses |
(284,661 | ) | (268,914 | ) | (555,523 | ) | (532,887 | ) | ||||||||
| Impairment charges |
(10,469 | ) | (4 | ) | (16,661 | ) | (7 | ) | ||||||||
| Depreciation and amortization |
(17,294 | ) | (14,431 | ) | (33,703 | ) | (28,812 | ) | ||||||||
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| Operating income (loss) |
43,130 | 63,598 | 84,626 | 114,241 | ||||||||||||
| Other income (expense): |
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| Interest expense, floor plan |
(5,345 | ) | (4,846 | ) | (10,123 | ) | (9,535 | ) | ||||||||
| Interest expense, other, net |
(13,054 | ) | (13,865 | ) | (26,274 | ) | (27,683 | ) | ||||||||
| Other income (expense), net |
10 | 3 | 100 | 100 | ||||||||||||
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| Total other income (expense) |
(18,389 | ) | (18,708 | ) | (36,297 | ) | (37,118 | ) | ||||||||
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| Income (loss) from continuing operations before taxes |
24,741 | 44,890 | 48,329 | 77,123 | ||||||||||||
| Provision for income taxes for continuing operations- benefit (expense) |
(9,649 | ) | (17,829 | ) | (18,848 | ) | (30,078 | ) | ||||||||
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| Income (loss) from continuing operations |
15,092 | 27,061 | 29,481 | 47,045 | ||||||||||||
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| Income (loss) from discontinued operations |
(311 | ) | (68 | ) | (732 | ) | (666 | ) | ||||||||
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| Net income (loss) |
$ | 14,781 | $ | 26,993 | $ | 28,749 | $ | 46,379 | ||||||||
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| Diluted earnings (loss) per common share: |
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| Earnings (loss) per share from continuing operations |
$ | 0.30 | $ | 0.51 | $ | 0.57 | $ | 0.89 | ||||||||
| Earnings (loss) per share from discontinued operations |
(0.01 | ) | — | (0.01 | ) | (0.02 | ) | |||||||||
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| Earnings (loss) per common share |
$ | 0.29 | $ | 0.51 | $ | 0.56 | $ | 0.87 | ||||||||
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| Weighted average common shares outstanding |
51,093 | 52,930 | 51,247 | 52,938 | ||||||||||||
| Gross Margin Data (Continuing Operations): |
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| New retail vehicles |
5.1 | % | 5.8 | % | 5.2 | % | 5.8 | % | ||||||||
| Fleet vehicles |
(0.1 | %) | 2.3 | % | (0.3 | %) | 2.5 | % | ||||||||
| Total new vehicles |
5.0 | % | 5.7 | % | 5.1 | % | 5.8 | % | ||||||||
| Used vehicles |
6.2 | % | 6.2 | % | 6.5 | % | 6.7 | % | ||||||||
| Wholesale vehicles |
(6.5 | %) | (2.9 | %) | (3.5 | %) | (1.6 | %) | ||||||||
| Parts, service and collision repair |
49.2 | % | 48.6 | % | 48.8 | % | 48.2 | % | ||||||||
| Finance, insurance and other |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
| Overall gross margin |
14.7 | % | 14.7 | % | 14.8 | % | 15.1 | % | ||||||||
| SG&A Expenses (Continuing Operations): |
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| Compensation |
$ | 167,811 | $ | 163,109 | $ | 329,669 | $ | 320,263 | ||||||||
| Advertising |
15,358 | 13,864 | 30,689 | 27,982 | ||||||||||||
| Rent |
18,246 | 18,643 | 36,500 | 37,178 | ||||||||||||
| Other |
83,246 | 73,298 | 158,665 | 147,464 | ||||||||||||
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| Total SG&A expenses |
$ | 284,661 | $ | 268,914 | $ | 555,523 | $ | 532,887 | ||||||||
| SG&A expenses as % of gross profit |
80.1 | % | 77.5 | % | 80.5 | % | 78.8 | % | ||||||||
| Operating Margin % |
1.8 | % | 2.7 | % | 1.8 | % | 2.5 | % | ||||||||
| Unit Data (Continuing Operations): |
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| New retail units |
34,676 | 34,847 | 66,010 | 64,876 | ||||||||||||
| Fleet units |
287 | 558 | 642 | 1,660 | ||||||||||||
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| Total new units |
34,963 | 35,405 | 66,652 | 66,536 | ||||||||||||
| Used units |
30,301 | 28,514 | 58,436 | 56,171 | ||||||||||||
| Wholesale units |
8,010 | 7,738 | 15,787 | 15,118 | ||||||||||||
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Per Share Data
| Three Months Ended June 30, 2015 | ||||||||||||||||||||||||||||
| Income (Loss) From Continuing Operations |
Income (Loss) From Discontinued Average |
Net Income (Loss) | ||||||||||||||||||||||||||
| Weighted Average Shares |
Amount | Per Share Amount |
Amount | Per Share Amount |
Amount | Per Share Amount |
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| (In thousands, except per share amounts) | ||||||||||||||||||||||||||||
| Reported: |
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| Earnings (loss) and shares |
50,784 | $ | 15,092 | $ | (311 | ) | $ | 14,781 | ||||||||||||||||||||
| Effect of participating securities: |
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| Non-vested restricted stock and stock units |
(7 | ) | — | (7 | ) | |||||||||||||||||||||||
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| Basic earnings (loss) and shares |
50,784 | $ | 15,085 | $ | 0.30 | $ | (311 | ) | $ | (0.01 | ) | $ | 14,774 | $ | 0.29 | |||||||||||||
| Effect of dilutive securities: |
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| Stock compensation plans |
309 | |||||||||||||||||||||||||||
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| Diluted earnings (loss) and shares |
51,093 | $ | 15,085 | $ | 0.30 | $ | (311 | ) | $ | (0.01 | ) | $ | 14,774 | $ | 0.29 | |||||||||||||
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| Adjustments (net of tax): |
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| Gain on disposal |
$ | (645 | ) | $ | (0.01 | ) | $ | — | $ | — | $ | (645 | ) | $ | (0.01 | ) | ||||||||||||
| Impairment charges |
6,386 | 0.12 | — | — | 6,386 | 0.12 | ||||||||||||||||||||||
| Storm damage and other |
2,555 | 0.05 | — | — | 2,555 | 0.05 | ||||||||||||||||||||||
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| Total adjustments |
$ | 8,296 | $ | 0.16 | $ | — | $ | — | $ | 8,296 | $ | 0.16 | ||||||||||||||||
| Adjusted: |
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| Earnings (loss) and |
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| Diluted earnings (loss) per share (1) |
$ | 23,388 | $ | 0.46 | $ | (311 | ) | $ | (0.01 | ) | $ | 23,077 | $ | 0.45 | ||||||||||||||
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| (1) | Expenses attributable to EchoPark® operations were $0.05 per fully diluted share in the three months ended June 30, 2015. |
| Three Months Ended June 30, 2014 | ||||||||||||||||||||||||||||
| Income (Loss) From Continuing Operations |
Income (Loss) From Discontinued Operations |
Net Income (Loss) | ||||||||||||||||||||||||||
| Weighted Average Shares |
Amount | Per Share Amount |
Amount | Per Share Amount |
Amount | Per Share Amount |
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| (In thousands, except per share amounts) | ||||||||||||||||||||||||||||
| Reported: |
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| Earnings (loss) and shares |
52,514 | $ | 27,061 | $ | (68 | ) | $ | 26,993 | ||||||||||||||||||||
| Effect of participating securities: |
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| Non-vested restricted stock and stock units |
(87 | ) | — | (87 | ) | |||||||||||||||||||||||
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| Basic earnings (loss) and shares |
52,514 | $ | 26,974 | $ | 0.51 | $ | (68 | ) | $ | — | $ | 26,906 | $ | 0.51 | ||||||||||||||
| Effect of dilutive securities: |
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| Stock compensation plans |
416 | |||||||||||||||||||||||||||
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| Diluted earnings (loss) and shares |
52,930 | $ | 26,974 | $ | 0.51 | $ | (68 | ) | $ | — | $ | 26,906 | $ | 0.51 | ||||||||||||||
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| Adjustments (net of tax): |
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| Gain on disposal |
$ | (4,446 | ) | $ | (0.08 | ) | $ | — | $ | — | $ | (4,446 | ) | $ | (0.08 | ) | ||||||||||||
| Storm damage and other |
840 | 0.01 | — | — | 840 | 0.01 | ||||||||||||||||||||||
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| Total adjustments |
$ | (3,606 | ) | $ | (0.07 | ) | $ | — | $ | — | $ | (3,606 | ) | $ | (0.07 | ) | ||||||||||||
| Adjusted: |
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| Earnings (loss) and |
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| Diluted earnings (loss) per share (2) |
$ | 23,455 | $ | 0.44 | $ | (68 | ) | $ | — | $ | 23,387 | $ | 0.44 | |||||||||||||||
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| (2) | Expenses attributable to EchoPark® operations were $0.04 per fully diluted share in the three months ended June 30, 2014. |
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Per Share Data
| Six Months Ended June 30, 2015 | ||||||||||||||||||||||||||||
| Income (Loss) From Continuing Operations |
Income (Loss) From Discontinued Operations |
Net Income (Loss) | ||||||||||||||||||||||||||
| Weighted Average Shares |
Amount | Per Share Amount |
Amount | Per Share Amount |
Amount | Per Share Amount |
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| (In thousands, except per share amounts) | ||||||||||||||||||||||||||||
| Reported: |
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| Earnings (loss) and shares |
50,819 | $ | 29,481 | $ | (732 | ) | $ | 28,749 | ||||||||||||||||||||
| Effect of participating securities: |
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| Non-vested restricted stock and stock units |
(14 | ) | — | (14 | ) | |||||||||||||||||||||||
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| Basic earnings (loss) and shares |
50,819 | $ | 29,467 | $ | 0.58 | $ | (732 | ) | $ | (0.01 | ) | $ | 28,735 | $ | 0.57 | |||||||||||||
| Effect of dilutive securities: |
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| Stock compensation plans |
428 | |||||||||||||||||||||||||||
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| Diluted earnings (loss) and shares |
51,247 | $ | 29,467 | $ | 0.57 | $ | (732 | ) | $ | (0.01 | ) | $ | 28,735 | $ | 0.56 | |||||||||||||
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| Adjustments (net of tax): |
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| 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 | ||||||||||||||||||||||
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| Total adjustments |
$ | 12,715 | $ | 0.25 | $ | — | $ | — | $ | 12,715 | $ | 0.25 | ||||||||||||||||
| Adjusted: |
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| Earnings (loss) and |
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| Diluted earnings (loss) per share (3) |
$ | 42,196 | $ | 0.82 | $ | (732 | ) | $ | (0.01 | ) | $ | 41,464 | $ | 0.81 | ||||||||||||||
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| (3) | Expenses attributable to EchoPark® operations were $0.11 per fully diluted share in the six months ended June 30, 2015. |
| Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||
| Income (Loss) From Continuing Operations |
Income (Loss) From Discontinued Operations |
Net Income (Loss) | ||||||||||||||||||||||||||
| Weighted Average Shares |
Amount | Per Share Amount |
Amount | Per Share Amount |
Amount | Per Share Amount |
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| (In thousands, except per share amounts) | ||||||||||||||||||||||||||||
| Reported: |
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| Earnings (loss) and shares |
52,466 | $ | 47,045 | $ | (666 | ) | $ | 46,379 | ||||||||||||||||||||
| Effect of participating securities: |
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| Non-vested restricted stock and stock units |
(151 | ) | — | (151 | ) | |||||||||||||||||||||||
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| Basic earnings (loss) and shares |
52,466 | $ | 46,894 | $ | 0.89 | $ | (666 | ) | $ | (0.01 | ) | $ | 46,228 | $ | 0.88 | |||||||||||||
| Effect of dilutive securities: |
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| Stock compensation plans |
472 | |||||||||||||||||||||||||||
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| Diluted earnings (loss) and shares |
52,938 | $ | 46,894 | $ | 0.89 | $ | (666 | ) | $ | (0.02 | ) | $ | 46,228 | $ | 0.87 | |||||||||||||
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| Adjustments (net of tax): |
||||||||||||||||||||||||||||
| Gain on disposal |
$ | (4,446 | ) | $ | (0.08 | ) | $ | — | $ | — | $ | (4,446 | ) | $ | (0.08 | ) | ||||||||||||
| Storm damage and other |
840 | 0.01 | — | — | 840 | 0.01 | ||||||||||||||||||||||
| Effect of two-class method & rounding |
— | — | — | 0.01 | — | 0.01 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total adjustments |
$ | (3,606 | ) | $ | (0.07 | ) | $ | — | $ | 0.01 | $ | (3,606 | ) | $ | (0.06 | ) | ||||||||||||
| Adjusted: |
||||||||||||||||||||||||||||
| Earnings (loss) and |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Diluted earnings (loss) per share (4) |
$ | 43,439 | $ | 0.82 | $ | (666 | ) | $ | (0.01 | ) | $ | 42,773 | $ | 0.81 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||
| (4) | Expenses attributable to EchoPark® operations were $0.06 per fully diluted share in the six months ended June 30, 2014. |
Sonic Automotive, Inc.
Results of Operations (Unaudited)
New Vehicles
| Three Months Ended June 30, | Better / (Worse) | |||||||||||||||||
| 2015 | 2014 | Change | % Change | |||||||||||||||
| (In thousands, except units and per unit data) | ||||||||||||||||||
| Reported: |
||||||||||||||||||
| Revenue |
$ | 1,295,288 | $ | 1,298,777 | $ | (3,489 | ) | (0.3 | %) | |||||||||
| Gross profit |
$ | 64,936 | $ | 74,193 | $ | (9,257 | ) | (12.5 | %) | |||||||||
| Unit sales |
34,963 | 35,405 | (442 | ) | (1.2 | %) | ||||||||||||
| Revenue per unit |
$ | 37,047 | $ | 36,683 | $ | 364 | 1.0 | % | ||||||||||
| Gross profit per unit |
$ | 1,857 | $ | 2,096 | $ | (239 | ) | (11.4 | %) | |||||||||
| Gross profit as a % of revenue |
5.0 | % | 5.7 | % | (70 | ) | bps | |||||||||||
| Six Months Ended June 30, | Better / (Worse) | |||||||||||||||||
| 2015 | 2014 | Change | % Change | |||||||||||||||
| (In thousands, except units and per unit data) | ||||||||||||||||||
| Reported: |
||||||||||||||||||
| Revenue |
$ | 2,497,610 | $ | 2,445,397 | $ | 52,213 | 2.1 | % | ||||||||||
| Gross profit |
$ | 128,285 | $ | 140,866 | $ | (12,581 | ) | (8.9 | %) | |||||||||
| Unit sales |
66,652 | 66,536 | 116 | 0.2 | % | |||||||||||||
| Revenue per unit |
$ | 37,472 | $ | 36,753 | $ | 719 | 2.0 | % | ||||||||||
| Gross profit per unit |
$ | 1,925 | $ | 2,117 | $ | (192 | ) | (9.1 | %) | |||||||||
| Gross profit as a % of revenue |
5.1 | % | 5.8 | % | (70 | ) | bps | |||||||||||
| Three Months Ended June 30, | Better / (Worse) | |||||||||||||||||
| 2015 | 2014 | Change | % Change | |||||||||||||||
| (In thousands, except units and per unit data) | ||||||||||||||||||
| Same Store: |
||||||||||||||||||
| Revenue |
$ | 1,282,668 | $ | 1,252,870 | $ | 29,798 | 2.4 | % | ||||||||||
| Gross profit |
$ | 64,789 | $ | 71,765 | $ | (6,976 | ) | (9.7 | %) | |||||||||
| Unit sales |
34,575 | 34,125 | 450 | 1.3 | % | |||||||||||||
| Revenue per unit |
$ | 37,098 | $ | 36,714 | $ | 384 | 1.0 | % | ||||||||||
| Gross profit per unit |
$ | 1,874 | $ | 2,103 | $ | (229 | ) | (10.9 | %) | |||||||||
| Gross profit as a % of revenue |
5.1 | % | 5.7 | % | (60 | ) | bps | |||||||||||
| Six Months Ended June 30, | Better / (Worse) | |||||||||||||||||
| 2015 | 2014 | Change | % Change | |||||||||||||||
| (In thousands, except units and per unit data) | ||||||||||||||||||
| Same Store: |
||||||||||||||||||
| Revenue |
$ | 2,472,920 | $ | 2,362,936 | $ | 109,984 | 4.7 | % | ||||||||||
| Gross profit |
$ | 127,227 | $ | 136,397 | $ | (9,170 | ) | (6.7 | %) | |||||||||
| Unit sales |
65,911 | 64,207 | 1,704 | 2.7 | % | |||||||||||||
| Revenue per unit |
$ | 37,519 | $ | 36,802 | $ | 717 | 1.9 | % | ||||||||||
| Gross profit per unit |
$ | 1,930 | $ | 2,124 | $ | (194 | ) | (9.1 | %) | |||||||||
| Gross profit as a % of revenue |
5.1 | % | 5.8 | % | (70 | ) | bps | |||||||||||
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Used Vehicles
| Three Months Ended June 30, | Better / (Worse) | |||||||||||||||||
| 2015 | 2014 | Change | % Change | |||||||||||||||
| (In thousands, except units and per unit data) | ||||||||||||||||||
| Reported: |
||||||||||||||||||
| Revenue |
$ | 658,794 | $ | 603,868 | $ | 54,926 | 9.1 | % | ||||||||||
| Gross profit |
$ | 40,696 | $ | 37,473 | $ | 3,223 | 8.6 | % | ||||||||||
| Unit sales |
30,301 | 28,514 | 1,787 | 6.3 | % | |||||||||||||
| Revenue per unit |
$ | 21,742 | $ | 21,178 | $ | 564 | 2.7 | % | ||||||||||
| Gross profit per unit |
$ | 1,343 | $ | 1,314 | $ | 29 | 2.2 | % | ||||||||||
| Gross profit as a % of revenue |
6.2 | % | 6.2 | % | 0 | bps | ||||||||||||
| Six Months Ended June 30, | Better / (Worse) | |||||||||||||||||
| 2015 | 2014 | Change | % Change | |||||||||||||||
| (In thousands, except units and per unit data) | ||||||||||||||||||
| Reported: |
||||||||||||||||||
| Revenue |
$ | 1,252,536 | $ | 1,163,684 | $ | 88,852 | 7.6 | % | ||||||||||
| Gross profit |
$ | 81,540 | $ | 78,167 | $ | 3,373 | 4.3 | % | ||||||||||
| Unit sales |
58,436 | 56,171 | 2,265 | 4.0 | % | |||||||||||||
| Revenue per unit |
$ | 21,434 | $ | 20,717 | $ | 717 | 3.5 | % | ||||||||||
| Gross profit per unit |
$ | 1,395 | $ | 1,392 | $ | 3 | 0.2 | % | ||||||||||
| Gross profit as a % of revenue |
6.5 | % | 6.7 | % | (20 | ) | bps | |||||||||||
| Three Months Ended June 30, | Better / (Worse) | |||||||||||||||||
| 2015 | 2014 | Change | % Change | |||||||||||||||
| (In thousands, except units and per unit data) | ||||||||||||||||||
| Same Store: |
||||||||||||||||||
| Revenue |
$ | 632,838 | $ | 581,024 | $ | 51,814 | 8.9 | % | ||||||||||
| Gross profit |
$ | 38,884 | $ | 36,647 | $ | 2,237 | 6.1 | % | ||||||||||
| Unit sales |
28,973 | 27,397 | 1,576 | 5.8 | % | |||||||||||||
| Revenue per unit |
$ | 21,842 | $ | 21,208 | $ | 634 | 3.0 | % | ||||||||||
| Gross profit per unit |
$ | 1,342 | $ | 1,338 | $ | 4 | 0.3 | % | ||||||||||
| Gross profit as a % of revenue |
6.1 | % | 6.3 | % | (20 | ) | bps | |||||||||||
| Six Months Ended June 30, | Better / (Worse) | |||||||||||||||||
| 2015 | 2014 | Change | % Change | |||||||||||||||
| (In thousands, except units and per unit data) | ||||||||||||||||||
| Same Store: |
||||||||||||||||||
| Revenue |
$ | 1,205,597 | $ | 1,118,663 | $ | 86,934 | 7.8 | % | ||||||||||
| Gross profit |
$ | 78,897 | $ | 75,933 | $ | 2,964 | 3.9 | % | ||||||||||
| Unit sales |
56,052 | 53,998 | 2,054 | 3.8 | % | |||||||||||||
| Revenue per unit |
$ | 21,509 | $ | 20,717 | $ | 792 | 3.8 | % | ||||||||||
| Gross profit per unit |
$ | 1,408 | $ | 1,406 | $ | 2 | 0.1 | % | ||||||||||
| Gross profit as a % of revenue |
6.5 | % | 6.8 | % | (30 | ) | bps | |||||||||||
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Wholesale Vehicles
| Three Months Ended June 30, | Better / (Worse) | |||||||||||||||||||
| 2015 | 2014 | Change | % Change | |||||||||||||||||
| (In thousands, except units and per unit data) | ||||||||||||||||||||
| Reported: |
||||||||||||||||||||
| Revenue |
$ | 41,131 | $ | 44,765 | $ | (3,634 | ) | (8.1 | %) | |||||||||||
| Gross profit (loss) |
$ | (2,676 | ) | $ | (1,314 | ) | $ | (1,362 | ) | (103.7 | %) | |||||||||
| Unit sales |
8,010 | 7,738 | 272 | 3.5 | % | |||||||||||||||
| Revenue per unit |
$ | 5,135 | $ | 5,785 | $ | (650 | ) | (11.2 | %) | |||||||||||
| Gross profit (loss) per unit |
$ | (334 | ) | $ | (170 | ) | $ | (164 | ) | (96.5 | %) | |||||||||
| Gross profit (loss) as a % of revenue |
(6.5 | %) | (2.9 | %) | (360 | ) | bps | |||||||||||||
| Six Months Ended June 30, | Better / (Worse) | |||||||||||||||||||
| 2015 | 2014 | Change | % Change | |||||||||||||||||
| (In thousands, except units and per unit data) | ||||||||||||||||||||
| Reported: |
||||||||||||||||||||
| Revenue |
$ | 82,789 | $ | 86,363 | $ | (3,574 | ) | (4.1 | %) | |||||||||||
| Gross profit (loss) |
$ | (2,884 | ) | $ | (1,409 | ) | $ | (1,475 | ) | (104.7 | %) | |||||||||
| Unit sales |
15,787 | 15,118 | 669 | 4.4 | % | |||||||||||||||
| Revenue per unit |
$ | 5,244 | $ | 5,713 | $ | (469 | ) | (8.2 | %) | |||||||||||
| Gross profit (loss) per unit |
$ | (183 | ) | $ | (93 | ) | $ | (90 | ) | (96.8 | %) | |||||||||
| Gross profit (loss) as a % of revenue |
(3.5 | %) | (1.6 | %) | (190 | ) | bps | |||||||||||||
| Three Months Ended June 30, | Better / (Worse) | |||||||||||||||||||
| 2015 | 2014 | Change | % Change | |||||||||||||||||
| (In thousands, except units and per unit data) | ||||||||||||||||||||
| Same Store: |
||||||||||||||||||||
| Revenue |
$ | 39,497 | $ | 43,326 | $ | (3,829 | ) | (8.8 | %) | |||||||||||
| Gross profit (loss) |
$ | (2,344 | ) | $ | (1,307 | ) | $ | (1,037 | ) | (79.3 | %) | |||||||||
| Unit sales |
7,637 | 7,476 | 161 | 2.2 | % | |||||||||||||||
| Revenue per unit |
$ | 5,172 | $ | 5,795 | $ | (623 | ) | (10.8 | %) | |||||||||||
| Gross profit (loss) per unit |
$ | (307 | ) | $ | (175 | ) | $ | (132 | ) | (75.4 | %) | |||||||||
| Gross profit (loss) as a % of revenue |
(5.9 | %) | (3.0 | %) | (290 | ) | bps | |||||||||||||
| Six Months Ended June 30, | Better / (Worse) | |||||||||||||||||||
| 2015 | 2014 | Change | % Change | |||||||||||||||||
| (In thousands, except units and per unit data) | ||||||||||||||||||||
| Same Store: |
||||||||||||||||||||
| Revenue |
$ | 80,270 | $ | 83,573 | $ | (3,303 | ) | (4.0 | %) | |||||||||||
| Gross profit (loss) |
$ | (2,530 | ) | $ | (1,331 | ) | $ | (1,199 | ) | (90.1 | %) | |||||||||
| Unit sales |
15,160 | 14,621 | 539 | 3.7 | % | |||||||||||||||
| Revenue per unit |
$ | 5,295 | $ | 5,716 | $ | (421 | ) | (7.4 | %) | |||||||||||
| Gross profit (loss) per unit |
$ | (167 | ) | $ | (91 | ) | $ | (76 | ) | (83.5 | %) | |||||||||
| Gross profit (loss) as a % of revenue |
(3.2 | %) | (1.6 | %) | (160 | ) | bps | |||||||||||||
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Parts, Service and Collision Repair (“Fixed Operations”)
| Three Months Ended June 30, | Better / (Worse) | |||||||||||||||
| 2015 | 2014 | Change | % Change | |||||||||||||
| (In thousands) | ||||||||||||||||
| Reported: |
||||||||||||||||
| Revenue |
||||||||||||||||
| Customer pay |
$ | 146,548 | $ | 145,040 | $ | 1,508 | 1.0 | % | ||||||||
| Warranty |
57,150 | 47,050 | 10,100 | 21.5 | % | |||||||||||
| Wholesale parts |
45,850 | 47,145 | (1,295 | ) | (2.7 | %) | ||||||||||
| Internal, sublet and other |
96,616 | 89,899 | 6,717 | 7.5 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 346,164 | $ | 329,134 | $ | 17,030 | 5.2 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit |
||||||||||||||||
| Customer pay |
$ | 80,286 | $ | 79,606 | $ | 680 | 0.9 | % | ||||||||
| Warranty |
32,679 | 25,671 | 7,008 | 27.3 | % | |||||||||||
| Wholesale parts |
8,148 | 8,308 | (160 | ) | (1.9 | %) | ||||||||||
| Internal, sublet and other |
49,122 | 46,274 | 2,848 | 6.2 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 170,235 | $ | 159,859 | $ | 10,376 | 6.5 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit as a % of revenue |
||||||||||||||||
| Customer pay |
54.8 | % | 54.9 | % | (10 | ) | bps | |||||||||
| Warranty |
57.2 | % | 54.6 | % | 260 | bps | ||||||||||
| Wholesale parts |
17.8 | % | 17.6 | % | 20 | bps | ||||||||||
| Internal, sublet and other |
50.8 | % | 51.5 | % | (70 | ) | bps | |||||||||
|
|
|
|
|
|
|
|||||||||||
| Total |
49.2 | % | 48.6 | % | 60 | bps | ||||||||||
| Six Months Ended June 30, | Better / (Worse) | |||||||||||||||
| 2015 | 2014 | Change | % Change | |||||||||||||
| (In thousands) | ||||||||||||||||
| Reported: |
||||||||||||||||
| Revenue |
||||||||||||||||
| Customer pay |
$ | 284,171 | $ | 286,162 | $ | (1,991 | ) | (0.7 | %) | |||||||
| Warranty |
110,648 | 93,641 | 17,007 | 18.2 | % | |||||||||||
| Wholesale parts |
90,862 | 95,089 | (4,227 | ) | (4.4 | %) | ||||||||||
| Internal, sublet and other |
183,677 | 173,013 | 10,664 | 6.2 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 669,358 | $ | 647,905 | $ | 21,453 | 3.3 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit |
||||||||||||||||
| Customer pay |
$ | 155,963 | $ | 157,605 | $ | (1,642 | ) | (1.0 | %) | |||||||
| Warranty |
62,440 | 50,909 | 11,531 | 22.7 | % | |||||||||||
| Wholesale parts |
16,287 | 16,469 | (182 | ) | (1.1 | %) | ||||||||||
| Internal, sublet and other |
91,919 | 87,023 | 4,896 | 5.6 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 326,609 | $ | 312,006 | $ | 14,603 | 4.7 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit as a % of revenue |
||||||||||||||||
| Customer pay |
54.9 | % | 55.1 | % | (20 | ) | bps | |||||||||
| Warranty |
56.4 | % | 54.4 | % | 200 | bps | ||||||||||
| Wholesale parts |
17.9 | % | 17.3 | % | 60 | bps | ||||||||||
| Internal, sublet and other |
50.0 | % | 50.3 | % | (30 | ) | bps | |||||||||
|
|
|
|
|
|
|
|||||||||||
| Total |
48.8 | % | 48.2 | % | 60 | bps | ||||||||||
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Parts, Service and Collision Repair (“Fixed Operations”)
| Three Months Ended June 30, | Better / (Worse) | |||||||||||||||
| 2015 | 2014 | Change | % Change | |||||||||||||
| (In thousands) | ||||||||||||||||
| Same Store: |
||||||||||||||||
| Revenue |
||||||||||||||||
| Customer pay |
$ | 145,235 | $ | 140,701 | $ | 4,534 | 3.2 | % | ||||||||
| Warranty |
56,672 | 45,065 | 11,607 | 25.8 | % | |||||||||||
| Wholesale parts |
45,502 | 45,855 | (353 | ) | (0.8 | %) | ||||||||||
| Internal, sublet and other |
93,761 | 87,105 | 6,656 | 7.6 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 341,170 | $ | 318,726 | $ | 22,444 | 7.0 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit |
||||||||||||||||
| Customer pay |
$ | 79,537 | $ | 77,320 | $ | 2,217 | 2.9 | % | ||||||||
| Warranty |
32,435 | 24,631 | 7,804 | 31.7 | % | |||||||||||
| Wholesale parts |
8,082 | 8,064 | 18 | 0.2 | % | |||||||||||
| Internal, sublet and other |
47,764 | 44,676 | 3,088 | 6.9 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 167,818 | $ | 154,691 | $ | 13,127 | 8.5 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit as a % of revenue |
||||||||||||||||
| Customer pay |
54.8 | % | 55.0 | % | (20 | ) | bps | |||||||||
| Warranty |
57.2 | % | 54.7 | % | 250 | bps | ||||||||||
| Wholesale parts |
17.8 | % | 17.6 | % | 20 | bps | ||||||||||
| Internal, sublet and other |
50.9 | % | 51.3 | % | (40 | ) | bps | |||||||||
|
|
|
|
|
|
|
|||||||||||
| Total |
49.2 | % | 48.5 | % | 70 | bps | ||||||||||
| Six Months Ended June 30, | Better / (Worse) | |||||||||||||||
| 2015 | 2014 | Change | % Change | |||||||||||||
| (In thousands) | ||||||||||||||||
| Same Store: |
||||||||||||||||
| Revenue |
||||||||||||||||
| Customer pay |
$ | 281,002 | $ | 277,187 | $ | 3,815 | 1.4 | % | ||||||||
| Warranty |
109,644 | 89,838 | 19,806 | 22.0 | % | |||||||||||
| Wholesale parts |
90,082 | 92,522 | (2,440 | ) | (2.6 | %) | ||||||||||
| Internal, sublet and other |
178,717 | 167,665 | 11,052 | 6.6 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 659,445 | $ | 627,212 | $ | 32,233 | 5.1 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit |
||||||||||||||||
| Customer pay |
$ | 154,225 | $ | 152,877 | $ | 1,348 | 0.9 | % | ||||||||
| Warranty |
61,892 | 48,901 | 12,991 | 26.6 | % | |||||||||||
| Wholesale parts |
16,135 | 15,971 | 164 | 1.0 | % | |||||||||||
| Internal, sublet and other |
89,573 | 83,821 | 5,752 | 6.9 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 321,825 | $ | 301,570 | $ | 20,255 | 6.7 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit as a % of revenue |
||||||||||||||||
| Customer pay |
54.9 | % | 55.2 | % | (30 | ) | bps | |||||||||
| Warranty |
56.4 | % | 54.4 | % | 200 | bps | ||||||||||
| Wholesale parts |
17.9 | % | 17.3 | % | 60 | bps | ||||||||||
| Internal, sublet and other |
50.1 | % | 50.0 | % | 10 | bps | ||||||||||
|
|
|
|
|
|
|
|||||||||||
| Total |
48.8 | % | 48.1 | % | 70 | bps | ||||||||||
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Finance, Insurance and Other, Net (“F&I”)
| Three Months Ended June 30, | Better / (Worse) | |||||||||||||||
| 2015 | 2014 | Change | % Change | |||||||||||||
| (In thousands, except per unit data) | ||||||||||||||||
| Reported: |
||||||||||||||||
| Revenue |
$ | 82,363 | $ | 76,736 | $ | 5,627 | 7.3 | % | ||||||||
| Gross profit per retail unit (excludes fleet) |
$ | 1,268 | $ | 1,211 | $ | 57 | 4.7 | % | ||||||||
| Six Months Ended June 30, | Better / (Worse) | |||||||||||||||
| 2015 | 2014 | Change | % Change | |||||||||||||
| (In thousands, except per unit data) | ||||||||||||||||
| Reported: |
||||||||||||||||
| Revenue |
$ | 156,963 | $ | 146,317 | $ | 10,646 | 7.3 | % | ||||||||
| Gross profit per retail unit (excludes fleet) |
$ | 1,261 | $ | 1,209 | $ | 52 | 4.3 | % | ||||||||
| Three Months Ended June 30, | Better / (Worse) | |||||||||||||||
| 2015 | 2014 | Change | % Change | |||||||||||||
| (In thousands, except per unit data) | ||||||||||||||||
| Same Store: |
||||||||||||||||
| Revenue |
$ | 80,573 | $ | 74,237 | $ | 6,336 | 8.5 | % | ||||||||
| Gross profit per retail unit (excludes fleet) |
$ | 1,274 | $ | 1,218 | $ | 56 | 4.6 | % | ||||||||
| Six Months Ended June 30, | Better / (Worse) | |||||||||||||||
| 2015 | 2014 | Change | % Change | |||||||||||||
| (In thousands, except per unit data) | ||||||||||||||||
| Same Store: |
||||||||||||||||
| Revenue |
$ | 153,702 | $ | 141,419 | $ | 12,283 | 8.7 | % | ||||||||
| Gross profit per retail unit (excludes fleet) |
$ | 1,267 | $ | 1,213 | $ | 54 | 4.5 | % | ||||||||
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Selling, General and Administrative (“SG&A”) Expenses
| Three Months Ended June 30, | Better / (Worse) | |||||||||||||||
| 2015 | 2014 | Change | % Change | |||||||||||||
| (In thousands) | ||||||||||||||||
| Reported: |
||||||||||||||||
| Compensation |
$ | 167,811 | $ | 163,109 | $ | (4,702 | ) | (2.9 | %) | |||||||
| Advertising |
15,358 | 13,864 | (1,494 | ) | (10.8 | %) | ||||||||||
| Rent |
18,246 | 18,643 | 397 | 2.1 | % | |||||||||||
| Other |
83,246 | 73,298 | (9,948 | ) | (13.6 | %) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 284,661 | $ | 268,914 | $ | (15,747 | ) | (5.9 | %) | |||||||
|
|
|
|
|
|
|
|
|
|||||||||
| SG&A expenses as a % of gross profit |
||||||||||||||||
| Compensation |
47.2 | % | 47.0 | % | (20 | ) | bps | |||||||||
| Advertising |
4.3 | % | 4.0 | % | (30 | ) | bps | |||||||||
| Rent |
5.1 | % | 5.4 | % | 30 | bps | ||||||||||
| Other |
23.5 | % | 21.1 | % | (240 | ) | bps | |||||||||
|
|
|
|
|
|
|
|||||||||||
| Total |
80.1 | % | 77.5 | % | (260 | ) | bps | |||||||||
| Six Months Ended June 30, | Better / (Worse) | |||||||||||||||
| 2015 | 2014 | Change | % Change | |||||||||||||
| (In thousands) | ||||||||||||||||
| Reported: |
||||||||||||||||
| Compensation |
$ | 329,669 | $ | 320,263 | $ | (9,406 | ) | (2.9 | %) | |||||||
| Advertising |
30,689 | 27,982 | (2,707 | ) | (9.7 | %) | ||||||||||
| Rent |
36,500 | 37,178 | 678 | 1.8 | % | |||||||||||
| Other |
158,665 | 147,464 | (11,201 | ) | (7.6 | %) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 555,523 | $ | 532,887 | $ | (22,636 | ) | (4.2 | %) | |||||||
|
|
|
|
|
|
|
|
|
|||||||||
| SG&A expenses as a % of gross profit |
||||||||||||||||
| Compensation |
47.7 | % | 47.4 | % | (30 | ) | bps | |||||||||
| Advertising |
4.4 | % | 4.1 | % | (30 | ) | bps | |||||||||
| Rent |
5.3 | % | 5.5 | % | 20 | bps | ||||||||||
| Other |
23.1 | % | 21.8 | % | (130 | ) | bps | |||||||||
|
|
|
|
|
|
|
|||||||||||
| Total |
80.5 | % | 78.8 | % | (170 | ) | bps | |||||||||