SONIC AUTOMOTIVE, INC. CHARLOTTE, N.C., July 22, 2014 /PRNewswire/ -- Sonic Automotive, Inc. (NYSE: SAH), one of the nation's largest automotive retailers, today reported net income from continuing operations for the second quarter of 2014 of $27.1 million, or $0.51 per fully diluted share. Net income from continuing operations for the second quarter of 2013 was $8.7 million, or $0.16 per fully diluted share. Results for the second quarter of 2014 include a net pre-tax gain of approximately $5.9 million, or $0.07 per diluted share, related to a gain on disposal of franchises, partially offset by hail damage and legal settlement charges. Results for the second quarter of 2013 include a pre-tax charge of approximately $29.0 million, or $0.34 per diluted share, related to costs associated with retiring all of its outstanding 9.0% Senior Subordinated Notes due 2018 (the "9% Notes").
Expenses attributable to Sonic's stand-alone pre-owned store initiative were $3.2 million, or $0.04 per fully diluted share, in the second quarter of 2014 compared to $0.7 million, or $0.01 per fully diluted share, in the prior year quarter.
Q2 2014 Highlights:
-- New retail gross profit up 10.9% on a 3.4% increase in unit sales volume
-- New retail vehicle revenue up $83.5 million, or 7.0%
-- All-time record pre-owned sales of 28,514 units in Q2 2014
-- Pre-owned vehicle revenue up $64.9 million, or 12.0%
-- Pre-owned unit sales per store per month reached 100 units in May 2014
and 93 units for Q2 2014
-- All-time record quarterly fixed operations gross profit in Q2 2014 of
$159.9 million, up $8.7 million, or 5.8%, over the prior year quarter
-- All-time record total gross profit in Q2 2014 of $346.9 million, up
$23.1 million, or 7.1%, over the prior year quarter
B. Scott Smith, the Company's President, noted, "We posted a solid performance in the second quarter growing the top-line and gross profit in every revenue category. We are also very excited about the kick-off of our One Sonic-One Experience initiative in our Charlotte market during the third quarter of 2014. This initiative, combined with our pre-owned store initiative which we plan to open in Denver, Colorado during the fourth quarter of 2014, is one of the cornerstones which will enable Sonic to rapidly grow in the future."
Jeff Dyke, Sonic's EVP of Operations, stated, "We had a fantastic quarter, achieving another significant milestone. In the month of May, we retailed 100 pre-owned vehicles per store per month. This was a goal we set for ourselves over three years ago and we know we can continue to build on this accomplishment. This sales velocity in our pre-owned business also fueled exceptional results in fixed operations as well as in our finance and insurance areas. These two areas delivered total gross profit of $237 million, another all-time record. Growth in these two areas generated an additional $16.2 million of gross profit in the second quarter of 2014."
Second 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: 76537422
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: 76537422
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 earnings per share from continuing operations, expected expense impacts of our company's stand-alone pre-owned store initiative, anticipated growth in new vehicle sales, and anticipated future success and impacts from the implementation of our planned customer experience and stand-alone pre-owned store initiatives. There are many factors that affect management's views about future events and trends of the Company's business. These factors involve risk and uncertainties that could cause actual results or trends to differ materially from management's view, including without limitation, economic conditions in the markets in which we operate, new and used vehicle industry sales volume, the success of our operational strategies, the rate and timing of overall economic recovery or decline, and the risk factors described in the Company's annual report on Form 10-K for the year ending December 31, 2013. The Company does not undertake any obligation to update forward-looking information.
Sonic Automotive, Inc.
Results of Operations (Unaudited)
This release contains certain non-GAAP financial measures (the "Adjusted" columns) as defined under SEC rules, such as, but not limited to, adjusted income from continuing operations and related earnings per
share data. The Company has reconciled these measures to the most directly comparable GAAP measures (the "Reported" columns) in the release. The Company believes that these non-GAAP financial measures
improve the transparency of the Company's disclosure by providing period-to-period comparability of the Company's results from operations
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Second Quarter Ended June 30, 2014 Second Quarter Ended June 30, 2013
---------------------------------- ----------------------------------
Reported Adjustments Adjusted Reported Adjustments Adjusted
-------- ----------- -------- -------- ----------- --------
(In thousands, except per share and unit data)
Revenues:
New retail vehicles $1,283,231 $ - $1,283,231 $1,199,709 $ - $1,199,709
Fleet vehicles 15,546 - 15,546 47,452 - 47,452
Total new vehicles 1,298,777 - 1,298,777 1,247,161 - 1,247,161
Used vehicles 603,868 - 603,868 538,977 - 538,977
Wholesale vehicles 44,765 - 44,765 40,032 - 40,032
------ --- ------ ------ --- ------
Total vehicles 1,947,410 - 1,947,410 1,826,170 - 1,826,170
Parts, service and collision repair 329,134 - 329,134 307,046 - 307,046
Finance, insurance and other, net 76,736 - 76,736 69,220 - 69,220
------ --- ------ ------ --- ------
Total revenues 2,353,280 - 2,353,280 2,202,436 - 2,202,436
Gross profit 346,947 - 346,947 323,806 - 323,806
Selling, general and administrative expenses (268,914) (5,911) (1) (274,825) (248,090) - (248,090)
Impairment charges (4) (4) (36) - (36)
Depreciation and amortization (14,431) - (14,431) (13,144) - (13,144)
------- --- ------- ------- --- -------
Operating income (loss) 63,598 (5,911) 57,687 62,536 - 62,536
Other income (expense):
Interest expense, floor plan (4,846) - (4,846) (5,591) - (5,591)
Interest expense, other, net (13,865) - (13,865) (14,390) 788 (2) (13,602)
Other income (expense), net 3 - 3 (28,265) 28,235 (3) (30)
--- --- --- ------- ------ ---
Total other income (expense) (18,708) - (18,708) (48,246) 29,023 (19,223)
------- --- ------- ------- ------ -------
Income (loss) from continuing operations before taxes 44,890 (5,911) 38,979 14,290 29,023 43,313
Provision for income taxes - benefit (expense) (17,829) 2,305 (15,524) (5,573) (11,319) (16,892)
------- ----- ------- ------ ------- -------
Income (loss) from continuing operations 27,061 (3,606) 23,455 8,717 17,704 26,421
Income (loss) from discontinued operations (68) - (68) 199 - 199
--- --- --- --- --- ---
Net income (loss) $26,993 $(3,606) $23,387 $8,916 $17,704 $26,620
======= ======= ======= ====== ======= =======
Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations $0.51 $(0.07) $0.44 $0.16 $0.34 $0.50
Earnings (loss) per share from discontinued operations - - - 0.01 (0.01) -
Earnings (loss) per common share $0.51 $(0.07) $0.44 $0.17 $0.33 $0.50
===== ====== ===== ===== ===== =====
Weighted average common shares outstanding 52,930 52,930 52,942 52,942
Gross Margin Data (Continuing Operations):
New retail vehicles 5.8% 5.8% 5.5% 5.5%
Fleet vehicles 2.3% 2.3% 2.6% 2.6%
Total new vehicles 5.7% 5.7% 5.4% 5.4%
Used vehicles 6.2% 6.2% 7.0% 7.0%
Wholesale vehicles (2.9%) (2.9%) (4.9%) (4.9%)
Parts, service and collision repair 48.6% 48.6% 49.2% 49.2%
Finance, insurance and other 100.0% 100.0% 100.0% 100.0%
Overall gross margin 14.7% 14.7% 14.7% 14.7%
SG&A Expenses (Continuing Operations):
Compensation (4) $163,109 $149,528
Advertising 13,864 13,718
Rent (5) 18,643 18,421
Other (6) 73,298 66,423
Total SG&A expenses $268,914 $5,911 $274,825 $248,090 $ - $248,090
SG&A expenses as % of gross profit 77.5% 79.2% 76.6% 76.6%
Operating Margin % 2.7% 2.5% 2.8% 2.8%
Unit Data (Continuing Operations):
New retail units 34,847 33,685
Fleet units 558 1,717
Total new units 35,405 35,402
Used units 28,514 26,599
Wholesale units 7,738 7,257
(1) Represents gain on disposal of dealerships, loss from hail damage and
legal expenses
(2) Represents double-carry interest on 9.0% Notes
(3) Represents loss on extinguishment of 9.0% Notes
(4) Included in SG&A Compensation expense are amounts attributable to Sonic's stand-alone pre-owned store initiative of $1.2 million and $0.6 million in the second quarter of
2014 and 2013, respectively
(5) Included in SG&A Rent expense is an amount attributable to Sonic's stand-alone pre-owned store initiative of $0.1 million
in the second quarter of 2014
(6) Included in SG&A Other expense are amounts attributable to Sonic's stand-alone pre-owned store initiative of $1.9 million and $0.1 million in the second
quarter of 2014 and 2013, respectively
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Six Months Ended June 30, 2014 Six Months Ended June 30, 2013
------------------------------ ------------------------------
Reported Adjustments Adjusted Reported Adjustments Adjusted
-------- ----------- -------- -------- ----------- --------
(In thousands, except per share and unit data)
Revenues:
New retail vehicles $2,395,521 $ - $2,395,521 $2,300,818 $ - $2,300,818
Fleet vehicles 49,876 - 49,876 89,399 - 89,399
Total new vehicles 2,445,397 - 2,445,397 2,390,217 - 2,390,217
Used vehicles 1,163,684 - 1,163,684 1,065,158 - 1,065,158
Wholesale vehicles 86,363 - 86,363 91,825 - 91,825
------ --- ------ ------ --- ------
Total vehicles 3,695,444 - 3,695,444 3,547,200 - 3,547,200
Parts, service and collision repair 647,905 - 647,905 603,689 - 603,689
Finance, insurance and other, net 146,317 - 146,317 134,714 - 134,714
------- --- ------- ------- --- -------
Total revenues 4,489,666 - 4,489,666 4,285,603 - 4,285,603
Gross profit 675,947 - 675,947 636,826 - 636,826
Selling, general and administrative expenses (532,887) (5,911) (1) (538,798) (493,914) - (493,914)
Impairment charges (7) - (7) (51) - (51)
Depreciation and amortization (28,812) - (28,812) (25,278) - (25,278)
------- --- ------- ------- --- -------
Operating income (loss) 114,241 (5,911) 108,330 117,583 - 117,583
Other income (expense):
Interest expense, floor plan (9,535) - (9,535) (10,804) - (10,804)
Interest expense, other, net (27,683) - (27,683) (28,749) 788 (2) (27,961)
Other income (expense), net 100 - 100 (28,170) 28,235 (3) 65
--- --- --- ------- ------ ---
Total other income (expense) (37,118) - (37,118) (67,723) 29,023 (38,700)
------- --- ------- ------- ------ -------
Income (loss) from continuing operations before taxes 77,123 (5,911) 71,212 49,860 29,023 78,883
Provision for income taxes - benefit (expense) (30,078) 2,305 (27,773) (19,445) (11,319) (30,764)
------- ----- ------- ------- ------- -------
Income (loss) from continuing operations 47,045 (3,606) 43,439 30,415 17,704 48,119
Income (loss) from discontinued operations (666) - (666) (208) - (208)
---- --- ---- ---- --- ----
Net income (loss) $46,379 $(3,606) $42,773 $30,207 $17,704 $47,911
======= ======= ======= ======= ======= =======
Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations $0.89 $(0.07) $0.82 $0.57 $0.33 $0.90
Earnings (loss) per share from discontinued operations (0.02) 0.01 (0.01) - - -
Earnings (loss) per common share $0.87 $(0.06) $0.81 $0.57 $0.33 $0.90
===== ====== ===== ===== ===== =====
Weighted average common shares outstanding 52,938 52,938 52,937 52,937
Gross Margin Data (Continuing Operations):
New retail vehicles 5.8% 5.8% 5.7% 5.7%
Fleet vehicles 2.5% 2.5% 2.8% 2.8%
Total new vehicles 5.8% 5.8% 5.6% 5.6%
Used vehicles 6.7% 6.7% 7.1% 7.1%
Wholesale vehicles (1.6%) (1.6%) (3.4%) (3.4%)
Parts, service and collision repair 48.2% 48.2% 48.9% 48.9%
Finance, insurance and other 100.0% 100.0% 100.0% 100.0%
Overall gross margin 15.1% 15.1% 14.9% 14.9%
SG&A Expenses (Continuing Operations):
Compensation (4) $320,263 $298,108
Advertising 27,982 27,150
Rent (5) 37,178 37,444
Other (6) 147,464 131,212
Total SG&A expenses $532,887 $5,911 $538,798 $493,914 $ - $493,914
SG&A expenses as % of gross profit 78.8% 79.7% 77.6% 77.6%
Operating Margin % 2.5% 2.4% 2.7% 2.7%
Unit Data (Continuing Operations):
New retail units 64,876 64,275
Fleet units 1,660 3,210
Total new units 66,536 67,485
Used units 56,171 53,068
Wholesale units 15,118 15,650
(1) Represents gain on disposal of dealerships, loss from hail damage and
legal expenses.
(2) Represents double-carry interest on 9.0% Notes.
(3) Represents loss on extinguishment of 9.0% Notes.
(4) Included in SG&A Compensation expense are amounts attributable to Sonic's stand-alone pre-owned store initiative of $2.7 million and $1.1 million in the six months ended June 30, 2014 and 2013,
respectively.
(5) Included in SG&A Rent expense is an amount attributable to Sonic's stand-alone pre-owned store initiative of $0.1 million in
the six months ended June 30, 2014.
(6) Included in SG&A Other expense are amounts attributable to Sonic's stand-alone pre-owned store initiative of $2.2 million and $0.4 million in the six months ended June 30,
2014 and 2013, respectively.
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Per Share Data
Second Quarter Ended June 30, 2014
----------------------------------
Income (Loss) Income (Loss)
From Continuing From Discontinued
Operations Average Net Income (Loss)
---------- ------- ----------------
Weighted Per Shares Per Per
Average Share Share Share
Shares Amount Amount Amount Amount Amount
------ ------ ------ ------ ------ ------
(In thousands, except per share amounts)
Reported:
Earnings (loss) and shares 52,514 $27,061 $(68) $26,993
Effect of participating securities:
Non-vested restricted stock
and stock units (87) - (87)
--- --- ---
Basic earnings (loss) and shares 52,514 $26,974 $0.51 $(68) $ - $26,906 $0.51
Effect of dilutive securities:
Stock compensation plans 416
Diluted earnings (loss) and shares 52,930 $26,974 $0.51 $(68) $ - $26,906 $0.51
====== ======= ===== ==== =================== ======= =====
Adjustments (net of tax):
Hail and legal $840 $0.01 $ - $ - $840 $0.01
Gain on disposal of franchises (4,446) (0.08) - - (4,446) (0.08)
Total adjustments $(3,606) $(0.07) $ - $ - $(3,606) $(0.07)
Adjusted:
Diluted earnings (loss) per share (1) $0.44 $ - $0.44
===== =================== =====
(1) Expenses attributable to Sonic's stand-alone pre-owned store initiative were $0.04 per fully diluted share in
the second quarter of 2014.
Second Quarter Ended June 30, 2013
----------------------------------
Income (Loss) Income (Loss)
From Continuing From Discontinued
Operations Operations Net Income (Loss)
---------- ---------- ----------------
Weighted Per Per Per
Average Share Share Share
Shares Amount Amount Amount Amount Amount Amount
------ ------ ------ ------ ------ ------ ------
(In thousands, except per share amounts)
Reported:
Earnings (loss) and shares 52,597 $8,717 $199 $8,916
Effect of participating securities:
Non-vested restricted stock
and stock units (63) - (63)
--- --- ---
Basic earnings (loss) and shares 52,597 $8,654 $0.16 $199 $0.01 $8,853 $0.17
Effect of dilutive securities:
Stock compensation plans 345
---
Diluted earnings (loss) and shares 52,942 $8,654 $0.16 $199 $0.01 $8,853 $0.17
====== ====== ===== ==== ===== ====== =====
Adjustments (net of tax):
Double-carry interest $481 $0.01 $ - $ - $481 $0.01
Debt extinguishment charges 17,223 0.33 - - 17,223 0.33
Effect of two-class method & rounding (129) - - (0.01) (129) (0.01)
Total adjustments $17,575 $0.34 $ - $(0.01) $17,575 $0.33
Adjusted:
Diluted earnings (loss) per share (2) $0.50 $ - $0.50
===== ====================== =====
(2) Expenses attributable to Sonic's stand-alone pre-owned store initiative were $0.01 per fully diluted share in
the second quarter of 2013.
Per Share Data
Six Months Ended June 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 52,466 $47,045 $(666) $46,379
Effect of participating securities:
Non-vested restricted stock
and stock units (151) - (151)
---- --- ----
Basic earnings (loss) and shares 52,466 $46,894 $0.89 $(666) $(0.01) $46,228 $0.88
Effect of dilutive securities:
Stock compensation plans 472
---
Diluted earnings (loss) and shares 52,938 $46,894 $0.89 $(666) $(0.02) $46,228 $0.87
====== ======= ===== ===== ====== ======= =====
Adjustments (net of tax):
Hail and legal $840 $0.01 $ - $ - $840 $0.01
Gain on disposal of franchises (4,446) (0.08) - - (4,446) (0.08)
Effect of two-class method & rounding 12 - - 0.01 12 0.01
Total adjustments $(3,594) $(0.07) $ - $0.01 $(3,594) $(0.06)
Adjusted:
Diluted earnings (loss) per share (3) $0.82 $(0.01) $0.81
===== ====== =====
(3) Expenses attributable to Sonic's stand-alone pre-owned store initiative were $0.05 per fully diluted share in
the six months ended June 30, 2014.
Six Months Ended June 30, 2013
------------------------------
Income (Loss) Income (Loss)
From Continuing From Discontinued
Operations Operations Net Income (Loss)
---------- ---------- ----------------
Weighted Per Per Per
Average Share Share Share
Shares Amount Amount Amount Amount Amount Amount
------ ------ ------ ------ ------ ------ ------
(In thousands, except per share amounts)
Reported:
Earnings (loss) and shares 52,591 $30,415 $(208) $30,207
Effect of participating securities:
Non-vested restricted stock
and stock units (229) - (229)
---- --- ----
Basic earnings (loss) and shares 52,591 $30,186 $0.57 $(208) $ - $29,978 $0.57
Effect of dilutive securities:
Stock compensation plans 346
---
Diluted earnings (loss) and shares 52,937 $30,186 $0.57 $(208) $ - $29,978 $0.57
====== ======= ===== ===== =================== ======= =====
Adjustments (net of tax):
Double-carry interest $481 $0.01 $ - $ - $481 $0.01
Debt extinguishment charges 17,223 0.33 - - 17,223 0.33
Effect of two-class method & rounding (129) (0.01) - - (129) (0.01)
Total adjustments $17,575 $0.33 $ - $ - $17,575 $0.33
Adjusted:
Diluted earnings (loss) per share (4) $0.90 $ - $0.90
===== =================== =====
(4) Expenses attributable to Sonic's stand-alone pre-owned store initiative were $0.02 per fully diluted share in
the six months ended June 30, 2013.
Sonic Automotive, Inc.
Results of Operations (Unaudited)
New Vehicles
Second Quarter Ended June 30, Better / (Worse)
----------------------------- ----------------
2014 2013 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $1,298,777 $1,247,161 $51,616 4.1%
Gross profit $74,193 $67,790 $6,403 9.4%
Unit sales 35,405 35,402 3 0.0%
Revenue per unit $36,683 $35,229 $1,454 4.1%
Gross profit per unit $2,096 $1,915 $181 9.5%
Gross profit as a % of revenue 5.7% 5.4% 30 bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2014 2013 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $2,445,397 $2,390,217 $55,180 2.3%
Gross profit $140,866 $134,259 $6,607 4.9%
Unit sales 66,536 67,485 (949) (1.4%)
Revenue per unit $36,753 $35,418 $1,335 3.8%
Gross profit per unit $2,117 $1,989 $128 6.4%
Gross profit as a % of revenue 5.8% 5.6% 20 bps
Second Quarter Ended June 30, Better / (Worse)
----------------------------- ----------------
2014 2013 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $1,263,004 $1,235,935 $27,069 2.2%
Gross profit $72,025 $67,142 $4,883 7.3%
Unit sales 34,713 35,164 (451) (1.3%)
Revenue per unit $36,384 $35,148 $1,236 3.5%
Gross profit per unit $2,075 $1,909 $166 8.7%
Gross profit as a % of revenue 5.7% 5.4% 30 bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2014 2013 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $2,382,051 $2,367,467 $14,584 0.6%
Gross profit $136,613 $132,604 $4,009 3.0%
Unit sales 65,306 66,983 (1,677) (2.5%)
Revenue per unit $36,475 $35,344 $1,131 3.2%
Gross profit per unit $2,092 $1,980 $112 5.7%
Gross profit as a % of revenue 5.7% 5.6% 10 bps
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Used Vehicles
Second Quarter Ended June 30, Better / (Worse)
----------------------------- ----------------
2014 2013 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $603,868 $538,977 $64,891 12.0%
Gross profit $37,473 $37,609 $(136) (0.4%)
Unit sales 28,514 26,599 1,915 7.2%
Revenue per unit $21,178 $20,263 $915 4.5%
Gross profit per unit $1,314 $1,414 $(100) (7.1%)
Gross profit as a % of revenue. 6.2% 7.0% (80) bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2014 2013 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $1,163,684 $1,065,158 $98,526 9.2%
Gross profit $78,167 $75,639 $2,528 3.3%
Unit sales 56,171 53,068 3,103 5.8%
Revenue per unit $20,717 $20,072 $645 3.2%
Gross profit per unit $1,392 $1,425 $(33) (2.3%)
Gross profit as a % of revenue 6.7% 7.1% (40) bps
Second Quarter Ended June 30, Better / (Worse)
----------------------------- ----------------
2014 2013 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $582,386 $530,567 $51,819 9.8%
Gross profit $36,675 $37,711 $(1,036) (2.7%)
Unit sales 27,617 26,226 1,391 5.3%
Revenue per unit $21,088 $20,231 $857 4.2%
Gross profit per unit $1,328 $1,438 $(110) (7.6%)
Gross profit as a % of revenue 6.3% 7.1% (80) bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2014 2013 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $1,122,929 $1,047,365 $75,564 7.2%
Gross profit $76,093 $74,435 $1,658 2.2%
Unit sales 54,458 52,292 2,166 4.1%
Revenue per unit $20,620 $20,029 $591 3.0%
Gross profit per unit $1,397 $1,423 $(26) (1.8%)
Gross profit as a % of revenue 6.8% 7.1% (30) bps
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Wholesale Vehicles
Second Quarter Ended June 30, Better / (Worse)
----------------------------- ----------------
2014 2013 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $44,765 $40,032 $4,733 11.8%
Gross profit (loss) $(1,314) $(1,943) $629 32.4%
Unit sales 7,738 7,257 481 6.6%
Revenue per unit $5,785 $5,516 $269 4.9%
Gross profit (loss) per unit $(170) $(268) $98 36.6%
Gross profit (loss) as a % of
revenue (2.9%) (4.9%) 200 bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2014 2013 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $86,363 $91,825 $(5,462) (5.9%)
Gross profit (loss) $(1,409) $(3,145) $1,736 55.2%
Unit sales 15,118 15,650 (532) (3.4%)
Revenue per unit $5,713 $5,867 $(154) (2.6%)
Gross profit (loss) per unit $(93) $(201) $108 53.7%
Gross profit (loss) as a % of
revenue. . (1.6%) (3.4%) 180 bps
Second Quarter Ended June 30, Better / (Worse)
----------------------------- ----------------
2014 2013 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $43,638 $39,729 $3,909 9.8%
Gross profit (loss) $(1,275) $(1,872) $597 31.9%
Unit sales 7,573 7,195 378 5.3%
Revenue per unit $5,762 $5,522 $240 4.3%
Gross profit (loss) per unit $(168) $(260) $92 35.4%
Gross profit (loss) as a % of
revenue (2.9%) (4.7%) 180 bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2014 2013 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $83,949 $90,646 $(6,697) (7.4%)
Gross profit (loss) $(1,247) $(2,995) $1,748 58.4%
Unit sales 14,804 15,497 (693) (4.5%)
Revenue per unit $5,671 $5,849 $(178) (3.0%)
Gross profit (loss) per unit $(84) $(193) $109 56.5%
Gross profit (loss) as a % of
revenue (1.5%) (3.3%) 180 bps
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Parts, Service and Collision Repair ("Fixed
Operations")
Second Quarter Ended June 30, Better / (Worse)
----------------------------- ----------------
2014 2013 Change % Change
---- ---- ------ --------
Reported: (In thousands)
Revenue
Customer pay $145,040 $136,343 $8,697 6.4%
Warranty 47,050 47,270 (220) (0.5%)
Wholesale parts 47,145 40,982 6,163 15.0%
Internal, sublet and other 89,899 82,451 7,448 9.0%
Total $329,134 $307,046 $22,088 7.2%
======== ======== ======= ===
Gross profit
Customer pay $79,606 $75,166 $4,440 5.9%
Warranty 25,671 26,388 (717) (2.7%)
Wholesale parts 8,308 7,658 650 8.5%
Internal, sublet and other 46,274 41,918 4,356 10.4%
Total $159,859 $151,130 $8,729 5.8%
======== ======== ====== ===
Gross profit as a % of revenue
Customer pay 54.9% 55.1% (20) bps
Warranty 54.6% 55.8% (120) bps
Wholesale parts 17.6% 18.7% (110) bps
Internal, sublet and other 51.5% 50.8% 70 bps
Total 48.6% 49.2% (60) bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2014 2013 Change % Change
---- ---- ------ --------
Reported: (In thousands)
Revenue
Customer pay $286,162 $270,146 $16,016 5.9%
Warranty 93,641 92,084 1,557 1.7%
Wholesale parts 95,089 81,520 13,569 16.6%
Internal, sublet and other 173,013 159,939 13,074 8.2%
Total $647,905 $603,689 $44,216 7.3%
======== ======== ======= ===
Gross profit
Customer pay $157,605 $149,282 $8,323 5.6%
Warranty 50,909 50,283 626 1.2%
Wholesale parts 16,469 15,277 1,192 7.8%
Internal, sublet and other 87,023 80,517 6,506 8.1%
Total $312,006 $295,359 $16,647 5.6%
======== ======== ======= ===
Gross profit as a % of revenue
Customer pay 55.1% 55.3% (20) bps
Warranty 54.4% 54.6% (20) bps
Wholesale parts 17.3% 18.7% (140) bps
Internal, sublet and other 50.3% 50.3% 0 bps
Total 48.2% 48.9% (70) bps
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Parts, Service and Collision Repair ("Fixed
Operations")
Second Quarter Ended June 30, Better / (Worse)
----------------------------- ----------------
2014 2013 Change % Change
---- ---- ------ --------
Same Store: (In thousands)
Revenue
Customer pay $138,668 $134,870 $3,798 2.8%
Warranty 45,184 46,542 (1,358) (2.9%)
Wholesale parts 45,704 40,819 4,885 12.0%
Internal, sublet and other 87,173 81,519 5,654 6.9%
Total $316,729 $303,750 $12,979 4.3%
======== ======== ======= ===
Gross profit
Customer pay $76,361 $74,408 $1,953 2.6%
Warranty 24,665 25,989 (1,324) (5.1%)
Wholesale parts 7,832 7,632 200 2.6%
Internal, sublet and other 44,711 41,350 3,361 8.1%
Total $153,569 $149,379 $4,190 2.8%
======== ======== ====== ===
Gross profit as a % of revenue
Customer pay 55.1% 55.2% (10) bps
Warranty 54.6% 55.8% (120) bps
Wholesale parts 17.1% 18.7% (160) bps
Internal, sublet and other 51.3% 50.7% 60 bps
Total 48.5% 49.2% (70) bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2014 2013 Change % Change
---- ---- ------ --------
Same Store: (In thousands)
Revenue
Customer pay $273,161 $266,837 $6,324 2.4%
Warranty 89,781 90,570 (789) (0.9%)
Wholesale parts 92,110 81,212 10,898 13.4%
Internal, sublet and other 167,946 157,956 9,990 6.3%
Total $622,998 $596,575 $26,423 4.4%
======== ======== ======= ===
Gross profit
Customer pay $150,941 $147,661 $3,280 2.2%
Warranty 48,828 49,745 (917) (1.8%)
Wholesale parts 15,622 15,230 392 2.6%
Internal, sublet and other 84,046 79,278 4,768 6.0%
Total $299,437 $291,914 $7,523 2.6%
======== ======== ====== ===
Gross profit as a % of revenue
Customer pay 55.3% 55.3% 0 bps
Warranty 54.4% 54.9% (50) bps
Wholesale parts 17.0% 18.8% (180) bps
Internal, sublet and other 50.0% 50.2% (20) bps
Total 48.1% 48.9% (80) bps
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Finance, Insurance and Other, Net ("F&I")
Second Quarter Ended June 30, Better / (Worse)
----------------------------- ----------------
2014 2013 Change % Change
---- ---- ------ --------
(In thousands, except per unit data)
Reported:
Revenue $76,736 $69,220 $7,516 10.9%
Gross profit per retail unit (excludes fleet) $1,211 $1,148 $63 5.5%
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2014 2013 Change % Change
---- ---- ------ --------
(In thousands, except per unit data)
Reported:
Revenue $146,317 $134,714 $11,603 8.6%
Gross profit per retail unit (excludes fleet) $1,209 $1,148 $61 5.3%
Second Quarter Ended June 30, Better / (Worse)
----------------------------- ----------------
2014 2013 Change % Change
---- ---- ------ --------
(In thousands, except per unit data)
Same Store:
Revenue $74,916 $68,765 $6,151 8.9%
Gross profit per retail unit (excludes fleet) $1,213 $1,152 $61 5.3%
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2014 2013 Change % Change
---- ---- ------ --------
(In thousands, except per unit data)
Same Store:
Revenue $142,847 $133,826 $9,021 6.7%
Gross profit per retail unit (excludes fleet) $1,210 $1,153 $57 4.9%
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Selling, General and Administrative ("SG&A")
Expenses
Second Quarter Ended June 30, Better / (Worse)
----------------------------- ----------------
2014 2013 Change % Change
---- ---- ------ --------
(In thousands)
Compensation $163,109 $149,528 $(13,581) (9.1%)
Advertising 13,864 13,718 (146) (1.1%)
Rent 18,643 18,421 (222) (1.2%)
Other 73,298 66,423 (6,875) (10.4%)
------ ------
Total $268,914 $248,090 $(20,824) (8.4%)
======== ======== ======== =====
SG&A expenses as a % of gross profit
Compensation 47.0% 46.2% (80) bps
Advertising 4.0% 4.2% 20 bps
Rent 5.4% 5.7% 30 bps
Other 21.1% 20.5% (60) bps
Total 77.5% 76.6% (90) bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2014 2013 Change % Change
---- ---- ------ --------
(In thousands)
Compensation $320,263 $298,108 $(22,155) (7.4%)
Advertising 27,982 27,150 (832) (3.1%)
Rent 37,178 37,444 266 0.7%
Other 147,464 131,212 (16,252) (12.4%)
------- -------
Total $532,887 $493,914 $(38,973) (7.9%)
======== ======== ======== =====
SG&A expenses as a % of gross profit
Compensation 47.4% 46.8% (60) bps
Advertising 4.1% 4.3% 20 bps
Rent 5.5% 5.9% 40 bps
Other 21.8% 20.6% (120) bps
Total 78.8% 77.6% (120) bps
SOURCE Sonic Automotive, Inc.
