SONIC AUTOMOTIVE, INC. CHARLOTTE, N.C., July 26, 2016 /PRNewswire/ --
Second Quarter 2016 Highlights
-- Q2 2016 same store fixed operations revenues up 3.0% over prior year
quarter
-- Q2 2016 same store finance and insurance revenues and gross profit up
2.9% over prior year quarter
-- Q2 2016 continuing operations SG&A to gross improves 160 basis points to
78.5% compared to prior year quarter of 80.1%
-- Q2 2016 continuing operations SG&A to gross improves 70 basis points to
78.5% compared to an adjusted prior year quarter of 79.2%
-- Two additional Denver market EchoPark(®) stores opened in late June
-- Q2 2016 EchoPark(®) stores retail 1,136 units, up 255 units, or 28.9%,
from the prior year quarter
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 2016 of $23.0 million, or $0.50 per diluted share. Included in these amounts are a pre-tax loss of $3.4 million, or $0.04 per diluted share, related to EchoPark(®) operations.
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. On an adjusted basis, net income from continuing operations for the second quarter of 2015 was $23.4 million, or $0.46 per diluted share. Included in these adjusted amounts is a pre-tax loss of $4.1 million, or $0.05 per diluted share, related to EchoPark(®) operations. 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, "The automotive retail environment continues to demonstrate strength and sustainability. Historic low interest rates and a fantastic product offering by manufacturers have supported customer demand for new and pre-owned vehicles. During the quarter, our team delivered an outstanding sales and service experience to our customers and leveraged our operating costs in delivering strong operating results. In addition, we were actively repurchasing outstanding shares. During the second quarter, we repurchased 759,056 shares of our Class A common stock for approximately $13.1 million. During the first half of 2016, we repurchased almost 10% of our shares outstanding as of the end of 2015."
"We are providing more detailed earnings guidance for the second half of the year as the third and fourth quarters' operating environments vary from year to year. Accordingly, we currently estimate diluted earnings per share from continuing operations for the third and fourth quarters will range between $0.52 - $0.54 and $0.66 - $0.69, respectively."
Jeff Dyke, Sonic's EVP of Operations, stated, "The industry was solid again this quarter and our performance reflected that. Our Sonic Automotive franchise store business continues to be supported by our team's ability to execute our playbook processes as we work to perfect the One Sonic-One Experience culture in our stores. Our guests' responses to our new process, technology and culture have been excellent as reflected in our customer satisfaction scores and the reviews we receive via Google, Yelp, etc. While we saw a decline in the new car retail SAAR in the quarter, new car margins have stabilized and heavy new car inventories from the first quarter are coming back in line with historical levels. We have worked with our manufacturer partners to develop action plans to address recall and stop-sale issues across several brands and are executing those plans. We are pleased that we will be opening several new add points this year including Mercedes Benz in McKinney, Texas (outside of Dallas), Audi in Pensacola, Florida and Nissan in Cleveland, Tennessee (outside of Chattanooga). These additional points reflect the strength of our organization and relationship with our manufacturer partners. We look forward to announcing several more add points in the coming quarters."
"We are also very pleased with the continued progress of EchoPark(®) as we opened two new stores in the Denver market. Our property acquisitions in the Carolinas and Texas remain active. We are beginning to see store-level profitability as our EchoPark(®) brand grows in Denver, and thus fueling our excitement about EchoPark(®) and its long-term prospects in an industry that is ripe for our guest experience model. The guest feedback at EchoPark(®) is remarkable, further supporting our strategic entry into this part of the pre-owned market. We have listened to our guests' needs and are delivering on those expectations."
Dividend
Sonic's Board of Directors approved a quarterly dividend of $0.05 per share payable in cash for stockholders of record on September 15, 2016. The dividend will be payable on October 14, 2016.
Second Quarter 2016 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: 43691612
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: 43691612
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.
Forward Looking Statements
Included herein are forward-looking statements, including statements with respect to anticipated expansion of our EchoPark(®) business and the anticipated amount of investments related to capital expenditures. 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 views, 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, 2015. The Company does not undertake any obligation to update forward-looking information.
Non-GAAP Financial Measures
This press release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as adjusted net income and adjusted earnings per share from continuing operations, which exclude certain items disclosed in the attached financial tables. As required by SEC rules, the Company provides reconciliations of these measures to the most directly comparable GAAP measures. The Company believes that these non-GAAP financial measures improve the transparency of the Company's disclosure, provide a meaningful presentation of the Company's results from its core business operations excluding the impact of items not related to the Company's ongoing core business operations, and improve the period-to-period comparability of the Company's results from its core business operations.
Sonic Automotive, Inc.
Results of Operations (Unaudited)
This release contains certain non-GAAP financial measures (the "Adjusted" amounts) 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" amounts) 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,
--------------------------- -------------------------
2016 2015 2016 2015
---- ---- ---- ----
(In thousands, except per share and unit data)
Revenues:
New retail vehicles $1,269,843 $1,285,632 $2,419,280 $2,475,847
Fleet vehicles 16,621 9,656 31,754 21,763
Total new vehicles 1,286,464 1,295,288 2,451,034 2,497,610
Used vehicles 622,186 658,794 1,220,540 1,252,536
Wholesale vehicles 38,245 41,131 82,620 82,789
------ ------ ------ ------
Total vehicles 1,946,895 1,995,213 3,754,194 3,832,935
Parts, service and collision repair 351,329 346,164 697,384 669,358
Finance, insurance and other, net 84,088 82,363 165,361 156,963
------ ------ ------- -------
Total revenues 2,382,312 2,423,740 4,616,939 4,659,256
Gross profit 353,305 355,554 698,455 690,513
Selling, general and administrative expenses (277,204) (284,661) (561,580) (555,523)
Impairment charges (151) (10,469) (151) (16,661)
Depreciation and amortization (18,905) (17,294) (37,374) (33,703)
------- ------- ------- -------
Operating income (loss) 57,045 43,130 99,350 84,626
Other income (expense):
Interest expense, floor plan (6,690) (5,345) (13,126) (10,123)
Interest expense, other, net (12,205) (13,054) (24,544) (26,274)
Other income (expense), net 6 10 110 100
--- --- --- ---
Total other income (expense) (18,889) (18,389) (37,560) (36,297)
------- ------- ------- -------
Income (loss) from continuing operations before taxes 38,156 24,741 61,790 48,329
Provision for income taxes for continuing operations - benefit (expense) (15,113) (9,649) (24,283) (18,848)
------- ------ ------- -------
Income (loss) from continuing operations 23,043 15,092 37,507 29,481
Income (loss) from discontinued operations (221) (311) (61) (732)
---- ---- --- ----
Net income (loss) $22,822 $14,781 $37,446 $28,749
======= ======= ======= =======
Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations $0.50 $0.30 $0.81 $0.57
Earnings (loss) per share from discontinued operations - (0.01) (0.01) (0.01)
Earnings (loss) per common share $0.50 $0.29 $0.80 $0.56
===== ===== ===== =====
Weighted average common shares outstanding 45,924 51,093 46,523 51,247
Gross Margin Data (Continuing Operations):
New retail vehicles 5.2% 5.1% 5.1% 5.2%
Fleet vehicles 0.9% (0.1%) 0.6% (0.3%)
Total new vehicles 5.1% 5.0% 5.1% 5.1%
Used vehicles 5.9% 6.2% 6.3% 6.5%
Wholesale vehicles (4.8%) (6.5%) (3.5%) (3.5%)
Parts, service and collision repair 47.9% 49.2% 47.9% 48.8%
Finance, insurance and other 100.0% 100.0% 100.0% 100.0%
Overall gross margin 14.8% 14.7% 15.1% 14.8%
SG&A Expenses (Continuing Operations):
Compensation $166,560 $167,811 $335,601 $329,669
Advertising 15,499 15,358 30,847 30,689
Rent 18,508 18,246 37,228 36,500
Other 76,637 83,246 157,904 158,665
Total SG&A expenses $277,204 $284,661 $561,580 $555,523
SG&A expenses as % of gross profit 78.5% 80.1% 80.4% 80.5%
Operating Margin % 2.4% 1.8% 2.2% 1.8%
Unit Data (Continuing Operations):
New retail units 33,229 34,676 63,385 66,010
Fleet units 553 287 1,002 642
Total new units 33,782 34,963 64,387 66,652
Used units 29,287 30,301 58,620 58,436
Wholesale units 7,212 8,010 15,635 15,787
Sonic Automotive, Inc.
Results of Operation (Unaudited)
Per Share Data
Three Months Ended June 30, 2016
--------------------------------
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 45,731 $23,043 $(221) $22,822
Effect of participating securities:
Non-vested restricted stock (13) - (13)
Basic earnings (loss) and shares 45,731 $23,030 $0.50 $(221) $ - $22,809 $0.50
Effect of dilutive securities:
Stock compensation plans 193
Diluted earnings (loss) and shares (1) 45,924 $23,030 $0.50 $(221) $ - $22,809 $0.50
(1) Net loss attributable to EchoPark(R) operations was $0.04 per fully diluted share in the three months ended June
30, 2016
Three Months Ended June 30, 2015
--------------------------------
Income (Loss) Income (Loss)
From Continuing From Discontinued
Operations Operations Net Income (Loss)
---------- ---------- ----------------
Weighted Per Per Per
Average Share Share Share
Shares Amount Amount Amount Amount Amount Amount
------ ------ ------ ------ ------ ------ ------
(In thousands, except per share amounts)
Reported:
Earnings (loss) and shares 50,784 $15,092 $(311) $14,781
Effect of participating securities:
Non-vested restricted stock (7) - (7)
Basic earnings (loss) and shares 50,784 $15,085 $0.30 $(311) $(0.01) $14,774 $0.29
Effect of dilutive securities:
Stock compensation plans 309
Diluted earnings (loss) and shares 51,093 $15,085 $0.30 $(311) $(0.01) $14,774 $0.29
Adjustments:
Gain on disposal $(1,057) $ - $(1,057)
Storm damage and other 4,189 - 4,189
Impairment charges 10,469 - 10,469
Total adjustments before taxes 13,601 - 13,601
Income tax effect of above adjustments (5,305) - (5,305)
Effect of adjustments, net of income taxes $8,296 $0.16 $ - $ - $8,296 $0.16
Adjusted:
Earnings (loss) and
diluted earnings (loss) per share (2) $23,388 $0.46 $(311) $(0.01) $23,077 $0.45
(2) Net loss attributable to EchoPark(R) operations was $0.05 per fully diluted share in the three months ended June
30, 2015
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Per Share Data
Six Months Ended June 30, 2016
------------------------------
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 46,340 $37,507 $(61) $37,446
Effect of participating securities:
Non-vested restricted stock (21) - (21)
Basic earnings (loss) and shares 46,340 $37,486 $0.81 $(61) $ - $37,425 $0.81
Effect of dilutive securities:
Stock compensation plans 183
Diluted earnings (loss) and shares 46,523 $37,486 $0.81 $(61) $(0.01) $37,425 $0.80
Adjustments:
Storm damage $6,043 $ - $6,043
Total adjustments before taxes 6,043 - 6,043
Income tax effect of above adjustments (2,345) - (2,345)
Effect of adjustments, net of income taxes $3,698 $0.08 $ - $ - $3,698 $0.08
Adjusted:
Earnings (loss) and
Diluted earnings (loss) per share (3) $41,205 $0.89 $(61) $(0.01) $41,144 $0.88
(3) Net loss attributable to EchoPark(R) operations was $0.09 per fully diluted share in the six months ended June
30, 2016
Six Months Ended June 30, 2015
------------------------------
Income (Loss) Income (Loss)
From Continuing From Discontinued
Operations Operations Net Income (Loss)
---------- ---------- ----------------
Weighted Per Per Per
Average Share Share Share
Shares Amount Amount Amount Amount Amount Amount
------ ------ ------ ------ ------ ------ ------
(In thousands, except per share amounts)
Reported:
Earnings (loss) and shares 50,819 $29,481 $(732) $28,749
Effect of participating securities:
Non-vested restricted stock (14) - (14)
Basic earnings (loss) and shares 50,819 $29,467 $0.58 $(732) $(0.01) $28,735 $0.57
Effect of dilutive securities:
Stock compensation plans 428
Diluted earnings (loss) and shares 51,247 $29,467 $0.57 $(732) $(0.01) $28,735 $0.56
Adjustments:
Gain on disposal $(955) $ - $(955)
Impairment charges 16,661 - 16,661
Storm damage and other 5,138 - 5,138
Total adjustments before taxes 20,844 - 20,844
Income tax effect of above adjustments (8,129) - (8,129)
Effect of adjustments, net of income taxes $12,715 $0.25 $ - $ - $12,715 $0.25
Adjusted:
Earnings (loss) and
Diluted earnings (loss) per share (4) $42,196 $0.82 $(732) $(0.01) $41,464 $0.81
(4) Net loss attributable to EchoPark(R) operations was $0.11 per fully diluted share in the six months ended June
30, 2015
Sonic Automotive, Inc.
Results of Operations (Unaudited)
New Vehicles
Three Months Ended June 30, Better / (Worse)
--------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $1,286,464 $1,295,288 $(8,824) (0.7%)
Gross profit $65,866 $64,936 $930 1.4%
Unit sales 33,782 34,963 (1,181) (3.4%)
Revenue per unit $38,081 $37,047 $1,034 2.8%
Gross profit per unit $1,950 $1,857 $93 5.0%
Gross profit as a % of revenue 5.1% 5.0% 10 bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $2,451,034 $2,497,610 $(46,576) (1.9%)
Gross profit $124,290 $128,285 $(3,995) (3.1%)
Unit sales 64,387 66,652 (2,265) (3.4%)
Revenue per unit $38,067 $37,472 $595 1.6%
Gross profit per unit $1,930 $1,925 $5 0.3%
Gross profit as a % of revenue 5.1% 5.1% 0 bps
Three Months Ended June 30, Better / (Worse)
--------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $1,286,464 $1,282,801 $3,663 0.3%
Gross profit $65,842 $64,852 $990 1.5%
Unit sales 33,782 34,639 (857) (2.5%)
Revenue per unit $38,081 $37,033 $1,048 2.8%
Gross profit per unit $1,949 $1,872 $77 4.1%
Gross profit as a % of revenue 5.1% 5.1% 0 bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $2,451,034 $2,472,295 $(21,261) (0.9%)
Gross profit $124,217 $127,350 $(3,133) (2.5%)
Unit sales 64,387 66,011 (1,624) (2.5%)
Revenue per unit $38,067 $37,453 $614 1.6%
Gross profit per unit $1,929 $1,929 $ - 0.0%
Gross profit as a % of revenue 5.1% 5.2% (10) bps
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Used Vehicles
Three Months Ended June 30, Better / (Worse)
--------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $622,186 $658,794 $(36,608) (5.6%)
Gross profit $36,969 $40,696 $(3,727) (9.2%)
Unit sales 29,287 30,301 (1,014) (3.3%)
Revenue per unit $21,244 $21,742 $(498) (2.3%)
Gross profit per unit $1,262 $1,343 $(81) (6.0%)
Gross profit as a % of revenue 5.9% 6.2% (30) bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $1,220,540 $1,252,536 $(31,996) (2.6%)
Gross profit $77,499 $81,540 $(4,041) (5.0%)
Unit sales 58,620 58,436 184 0.3%
Revenue per unit $20,821 $21,434 $(613) (2.9%)
Gross profit per unit $1,322 $1,395 $(73) (5.2%)
Gross profit as a % of revenue 6.3% 6.5% (20) bps
Three Months Ended June 30, Better / (Worse)
--------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $621,748 $648,821 $(27,073) (4.2%)
Gross profit $37,697 $40,329 $(2,632) (6.5%)
Unit sales 29,267 29,809 (542) (1.8%)
Revenue per unit $21,244 $21,766 $(522) (2.4%)
Gross profit per unit $1,288 $1,353 $(65) (4.8%)
Gross profit as a % of revenue 6.1% 6.2% (10) bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $1,220,103 $1,233,808 $(13,705) (1.1%)
Gross profit $78,388 $81,337 $(2,949) (3.6%)
Unit sales 58,600 57,496 1,104 1.9%
Revenue per unit $20,821 $21,459 $(638) (3.0%)
Gross profit per unit $1,338 $1,415 $(77) (5.4%)
Gross profit as a % of revenue 6.4% 6.6% (20) bps
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Wholesale Vehicles
Three Months Ended June 30, Better / (Worse)
--------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $38,245 $41,131 $(2,886) (7.0%)
Gross profit (loss) $(1,839) $(2,676) $837 31.3%
Unit sales 7,212 8,010 (798) (10.0%)
Revenue per unit $5,303 $5,135 $168 3.3%
Gross profit (loss) per unit $(255) $(334) $79 23.7%
Gross profit (loss) as a % of revenue (4.8%) (6.5%) 170 bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $82,620 $82,789 $(169) (0.2%)
Gross profit (loss) $(2,917) $(2,884) $(33) (1.1%)
Unit sales 15,635 15,787 (152) (1.0%)
Revenue per unit $5,284 $5,244 $40 0.8%
Gross profit (loss) per unit $(187) $(183) $(4) (2.2%)
Gross profit (loss) as a % of revenue (3.5%) (3.5%) 0 bps
Three Months Ended June 30, Better / (Worse)
--------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $38,245 $40,417 $(2,172) (5.4%)
Gross profit (loss) $(1,839) $(2,455) $616 25.1%
Unit sales 7,212 7,890 (678) (8.6%)
Revenue per unit $5,303 $5,123 $180 3.5%
Gross profit (loss) per unit $(255) $(311) $56 18.0%
Gross profit (loss) as a % of revenue (4.8%) (6.1%) 130 bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $82,599 $81,670 $929 1.1%
Gross profit (loss) $(2,915) $(2,651) $(264) (10.0%)
Unit sales 15,630 15,578 52 0.3%
Revenue per unit $5,285 $5,243 $42 0.8%
Gross profit (loss) per unit $(187) $(170) $(17) (10.0%)
Gross profit (loss) as a % of revenue (3.5%) (3.2%) (30) bps
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Parts, Service and Collision Repair ("Fixed
Operations")
Three Months Ended June 30, Better / (Worse)
--------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
Reported: (In thousands)
Revenue
Customer pay $149,248 $146,548 $2,700 1.8%
Warranty 54,812 57,150 (2,338) (4.1%)
Wholesale parts 44,021 45,850 (1,829) (4.0%)
Internal, sublet and other 103,248 96,616 6,632 6.9%
Total $351,329 $346,164 $5,165 1.5%
======== ======== ======
Gross profit
Customer pay $81,323 $80,286 $1,037 1.3%
Warranty 29,449 32,679 (3,230) (9.9%)
Wholesale parts 7,797 8,148 (351) (4.3%)
Internal, sublet and other 49,652 49,122 530 1.1%
Total $168,221 $170,235 $(2,014) (1.2%)
======== ======== =======
Gross profit as a % of revenue
Customer pay 54.5% 54.8% (30) bps
Warranty 53.7% 57.2% (350) bps
Wholesale parts 17.7% 17.8% (10) bps
Internal, sublet and other 48.1% 50.8% (270) bps
Total 47.9% 49.2% (130) bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
Reported: (In thousands)
Revenue
Customer pay $296,642 $284,171 $12,471 4.4%
Warranty 112,371 110,648 1,723 1.6%
Wholesale parts 89,331 90,862 (1,531) (1.7%)
Internal, sublet and other 199,040 183,677 15,363 8.4%
Total $697,384 $669,358 $28,026 4.2%
======== ======== ======= ===
Gross profit
Customer pay $161,680 $155,963 $5,717 3.7%
Warranty 60,775 62,440 (1,665) (2.7%)
Wholesale parts 15,738 16,287 (549) (3.4%)
Internal, sublet and other 96,029 91,919 4,110 4.5%
Total $334,222 $326,609 $7,613 2.3%
======== ======== ====== ===
Gross profit as a % of revenue
Customer pay 54.5% 54.9% (40) bps
Warranty 54.1% 56.4% (230) bps
Wholesale parts 17.6% 17.9% (30) bps
Internal, sublet and other 48.2% 50.0% (180) bps
Total 47.9% 48.8% (90) bps
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Parts, Service and Collision Repair ("Fixed
Operations")
Three Months Ended June 30, Better / (Worse)
--------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
Same Store: (In thousands)
Revenue
Customer pay $149,246 $144,293 $4,953 3.4%
Warranty 54,812 56,382 (1,570) (2.8%)
Wholesale parts 44,021 45,133 (1,112) (2.5%)
Internal, sublet and other 103,231 95,227 8,004 8.4%
Total $351,310 $341,035 $10,275 3.0%
======== ======== =======
Gross profit
Customer pay $81,322 $79,028 $2,294 2.9%
Warranty 29,543 32,272 (2,729) (8.5%)
Wholesale parts 7,797 8,003 (206) (2.6%)
Internal, sublet and other 49,470 48,428 1,042 2.2%
Total $168,132 $167,731 $401 0.2%
======== ======== ====
Gross profit as a % of revenue
Customer pay 54.5% 54.8% (30) bps
Warranty 53.9% 57.2% (330) bps
Wholesale parts 17.7% 17.7% 0 bps
Internal, sublet and other 47.9% 50.9% (300) bps
Total 47.9% 49.2% (130) bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
Same Store: (In thousands)
Revenue
Customer pay $296,640 $278,930 $17,710 6.3%
Warranty 112,371 109,076 3,295 3.0%
Wholesale parts 89,331 89,334 (3) (0.0%)
Internal, sublet and other 199,023 180,968 18,055 10.0%
Total . $697,365 $658,308 $39,057 5.9%
======== ======== ======= ===
Gross profit
Customer pay $161,679 $153,078 $8,601 5.6%
Warranty. 60,825 61,572 (747) (1.2%)
Wholesale parts 15,739 15,990 (251) (1.6%)
Internal, sublet and other 95,538 90,594 4,944 5.5%
Total $333,781 $321,234 $12,547 3.9%
======== ======== ======= ===
Gross profit as a % of revenue
Customer pay . 54.5% 54.9% (40) bps
Warranty 54.1% 56.4% (230) bps
Wholesale parts 17.6% 17.9% (30) bps
Internal, sublet and other 48.0% 50.1% (210) bps
Total 47.9% 48.8% (90) bps
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Finance, Insurance and Other, Net ("F&I")
Three Months Ended June 30, Better / (Worse)
--------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except per unit data)
Reported:
Revenue $84,088 $82,363 $1,725 2.1%
Gross profit per retail unit (excludes fleet) $1,345 $1,268 $77 6.1%
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except per unit data)
Reported:
Revenue $165,361 $156,963 $8,398 5.4%
Gross profit per retail unit (excludes fleet) $1,355 $1,261 $94 7.5%
Three Months Ended June 30, Better / (Worse)
--------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except per unit data)
Same Store:
Revenue $83,884 $81,492 $2,392 2.9%
Gross profit per retail unit (excludes fleet) $1,342 $1,270 $72 5.7%
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except per unit data)
Same Store:
Revenue $164,736 $155,182 $9,554 6.2%
Gross profit per retail unit (excludes fleet) $1,350 $1,263 $87 6.9%
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Selling, General and Administrative ("SG&A") Expenses
Three Months Ended June 30, Better / (Worse)
--------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands)
Reported:
Compensation $166,560 $167,811 $1,251 0.7%
Advertising 15,499 15,358 (141) (0.9%)
Rent 18,508 18,246 (262) (1.4%)
Other 76,637 83,246 6,609 7.9%
------ ------
Total SG&A expenses $277,204 $284,661 $7,457 2.6%
-------- -------- ------
Adjustments:
Gain on disposal $ - $1,057 $1,057 100.0%
Storm damage and other - (4,189) (4,189) (100.0%)
Total SG&A adjustments $ - $(3,132) $(3,132) (100.0%)
Adjusted:
Total adjusted SG&A expenses $277,204 $281,529 $4,325 1.5%
======== ======== ======
Reported:
SG&A expenses as a % of gross profit
Compensation 47.1% 47.2% 10 bps
Advertising 4.4% 4.3% (10) bps
Rent 5.2% 5.1% (10) bps
Other 21.8% 23.5% 170 bps
Total SG&A expenses as a % of gross profit 78.5% 80.1% 160 bps
---- ---- ---
Adjustments:
Gain on disposal 0.0% 0.3% 30 bps
Storm damage and other 0.0% (1.2%) (120) bps
-----
Total effect of adjustments 0.0% (0.9%) (90) bps
Adjusted:
Total adjusted SG&A as a % of gross profit 78.5% 79.2% 70 bps
==== ==== ===
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands)
Reported:
Compensation $335,601 $329,669 $(5,932) (1.8%)
Advertising 30,847 30,689 (158) (0.5%)
Rent 37,228 36,500 (728) (2.0%)
Other 157,904 158,665 761 0.5%
Total SG&A expenses $561,580 $555,523 $(6,057) (1.1%)
-------- -------- -------
Adjustments:
Gain on disposal $ - $955 $955 100.0%
Storm damage and other (6,043) (5,138) 905 17.6%
Total SG&A adjustments $(6,043) $(4,183) $1,860 44.5%
Adjusted:
Total adjusted SG&A expenses $555,537 $551,340 $(4,197) (0.8%)
======== ======== =======
Reported:
SG&A expenses as a % of gross profit
Compensation 48.0% 47.7% (30) bps
Advertising 4.4% 4.4% 0 bps
Rent 5.3% 5.3% 0 bps
Other 22.7% 23.1% 40 bps
Total SG&A expenses as a % of gross profit 80.4% 80.5% 10 bps
Adjustments:
Gain on disposal 0.0% 0.1% 10 bps
Storm damage and other (0.9%) (0.8%) 10 bps
Total effect of adjustments (0.9%) (0.7%) 20 bps
Adjusted:
Total adjusted SG&A as a % of gross profit 79.5% 79.8% 30 bps
==== ==== ===
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sonic-automotive-inc-reports-quarterly-continuing-operations-earnings-per-share-of-050-300303678.html
SOURCE Sonic Automotive, Inc.
