SONIC AUTOMOTIVE, INC. CHARLOTTE, N.C., Feb. 21, 2017 /PRNewswire/ --
Fourth Quarter 2016 Results
-- Record Q4 pre-owned units and gross profit of 29,621 and $41.5 million,
respectively
-- Record Q4 fixed operations gross profit of $169.9 million, up 0.5% over
the prior year quarter
-- Record Q4 F&I gross profit and gross profit per retail unit of $88.3
million and $1,363, respectively
-- Record Q4 total gross profit of $371.7 million, up 2.2% over the prior
year quarter
-- EchoPark(®) stores retailed 1,330 units, up 74.1% over the prior year
quarter
Full Year 2016 Results
-- Record annual pre-owned units of 119,174, up 1.8% over the prior year
-- Record annual fixed operations gross profit of $674.1 million, up 1.3%
over the prior year
-- Record annual F&I gross profit and gross profit per retail unit of
$343.3 million and $1,354, respectively
-- Record annual total gross profit of $1.429 billion, up 1.0% over the
prior year
-- EchoPark(®) stores retailed 4,865 units, up 50.9% over the prior year
Sonic Automotive, Inc. (NYSE: SAH), one of the nation's largest automotive retailers, today reported financial results for the fourth quarter and full year of 2016.
GAAP Basis
Net income from continuing operations for the fourth quarter of 2016 and 2015 was $38.0 million, or $0.84 per diluted share, and $31.5 million, or $0.63 per diluted share, respectively. Also included in the reported amounts for the fourth quarter of 2016 and 2015 is a net loss from operations related to EchoPark(®) of $1.3 million, or $0.03 per diluted share, and $2.2 million, or $0.04 per diluted share, respectively.
Net income from continuing operations for the full year of 2016 and 2015 was $94.5 million, or $2.06 per diluted share, and $88.1 million, or $1.73 per diluted share, respectively. Also included in the reported amounts for the full year of 2016 and 2015 is a net loss from operations related to EchoPark(®) of $7.8 million, or $0.17 per diluted share, and $10.8 million, or $0.21 per diluted share, respectively.
Adjusted Basis
Adjusted net income from continuing operations and related earnings per diluted share are non-GAAP financial measures. The schedules included in this press release reconcile these non-GAAP financial measures to the most directly comparable GAAP financial measures.
Adjusted net income from continuing operations for the fourth quarter of 2016 and 2015 was $29.8 million, or $0.66 per diluted share, and $30.9 million, or $0.61 per diluted share, respectively. The adjustments in the 2016 quarterly period relate to gains for a settlement with an original equipment manufacturer ("OEM") and the adjustment of physical damage loss accruals offset partially by losses related to fixed asset impairments and lease exit charges. The adjustments in the 2015 quarterly period relate to gains from the disposal of dealership franchises, offset partially by losses related to fixed asset and franchise asset impairments.
Adjusted net income from continuing operations for the full year of 2016 and 2015 was $92.3 million, or $2.01 per diluted share, and $100.2 million, or $1.97 per diluted share, respectively. The adjustments in the 2016 annual period relate to gains for a settlement with an OEM, partially offset by charges related to physical damage losses, lease exit charges and fixed asset impairments. The adjustments in the 2015 annual period related to charges related to physical damage losses, legal matters, lease exit charges and fixed assets impairments, franchise assets and goodwill, offset partially by gains from the disposal of dealership franchises.
Commentary
Jeff Dyke, Sonic's EVP of Operations, stated, "We are very proud of our record setting performance in the fourth quarter and throughout 2016. During the year, increases in fixed operations and F&I gross profit have been able to overshadow challenges experienced in the new and used vehicle gross profit categories. We are very proud of our team for how they handled these challenges driven by recalls, over-supply of inventory and softening in the Houston, Texas market. The December month was an all-time record breaking month for us and offset a weaker start to the quarter. We sold, grossed, serviced and profited more in December than in any month in our company's history. We believe our brand mix, improvements in the Houston economy and our team's execution of our Playbook strategy helped lead to this record breaking performance. In addition, our stores representing three of our most significant brands, Honda, BMW and Mercedes, were able to outpace industry unit results during the fourth quarter."
"EchoPark(®) continues to improve its performance from an operational and financial standpoint. Several of the original stores in Denver were cash flow positive in the fourth quarter at the store operating level and our first store that has been open the longest was profitable for the year. We have an additional store opening in Colorado Springs in the second quarter that will bring our store count total in Colorado to six. Our next market we expect to open will be in Texas, specifically, the San Antonio market where we anticipate openings of at least three new locations in late 2017. We are excited about our EchoPark(®) performance and the progress we are making from a profit perspective. We also continue to have one of the highest Reputation.com scores for auto retail, and retail in general, as guests continue to tell us that the goal we set of developing the best guest experience in the industry is being met!"
2017 Outlook
B. Scott Smith, the Company's Chief Executive Officer, noted, "The 2016 year proved to be a bit of a roller coaster ride from month-to-month as we believe consumer uncertainty, the effect of recalls and stop-sales made it challenging for all automotive retailers. We expect 2017 to be consistent with the 2016 environment for dealers and anticipate new vehicle industry volume to be between 17.0 million and 17.5 million units. We project diluted earnings per share from continuing operations for 2017 to be between $2.00 and $2.10 per share. This range includes the effect of projected EchoPark(®) results and expansion. We are projecting a loss related to EchoPark® for 2017 of between $0.23 and $0.27 per diluted share. We will have additional comments on our 2017 outlook in our earnings call later today."
Dividend
Sonic's Board of Directors approved a quarterly dividend of $0.05 per share payable in cash for stockholders of record on March 15, 2017. The dividend will be payable on April 14, 2017.
Fourth Quarter Earnings Conference Call
Senior management will host a conference call today at 11:00 A.M. (Eastern) to discuss the quarter's results. To access the live broadcast of the call over the Internet go to: www.sonicautomotive.com, then click on "Our Company," then "Investor Relations," then "Earnings Conference Calls."
Presentation materials for the conference call can be accessed on the Company's website at www.sonicautomotive.com by clicking on the "Investor Relations" tab under "Our Company" and choosing "Webcasts & Presentations."
The conference call will also be available live by dialing in 10 minutes prior to the start of the call at:
Domestic: 1.877.450.3867
International: 1.706.643.0958
Conference ID: 57878967
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: 57878967
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, the estimated new vehicle industry volume in 2017 and anticipated diluted earnings per share from continuing operations for the full year ending December 31, 2017. There are many factors that affect management's views about future events and trends of the Company's business. These factors involve risks 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, except as required under federal securities laws and the rules and regulations of the Securities and Exchange Commission (the "SEC").
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 from continuing operations and related earnings per diluted share, 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 financial 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 December 31, Twelve Months Ended December 31,
------------------------------- --------------------------------
2016 2015 2016 2015
---- ---- ---- ----
(In thousands, except per share and unit data)
Revenues:
New retail vehicles $1,396,413 $1,377,661 $5,180,535 $5,205,688
Fleet vehicles 11,914 22,101 53,970 59,713
Total new vehicles 1,408,327 1,399,762 5,234,505 5,265,401
Used vehicles 651,608 607,430 2,533,122 2,512,024
Wholesale vehicles 57,906 34,579 211,048 155,339
------ ------ ------- -------
Total vehicles 2,117,841 2,041,771 7,978,675 7,932,764
Parts, service and collision repair 350,726 345,068 1,409,819 1,364,947
Finance, insurance and other, net 88,346 83,796 343,285 326,588
------ ------ ------- -------
Total revenues 2,556,913 2,470,635 9,731,779 9,624,299
Gross profit 371,735 363,848 1,429,274 1,414,612
Selling, general and administrative expenses (267,135) (275,002) (1,110,856) (1,110,565)
Impairment charges (1,824) (1,257) (8,063) (17,955)
Depreciation and amortization (20,144) (17,846) (77,446) (68,799)
------- ------- ------- -------
Operating income (loss) 82,632 69,743 232,909 217,293
Other income (expense):
Interest expense, floor plan (7,919) (5,840) (27,716) (21,326)
Interest expense, other, net (12,546) (12,275) (50,106) (50,910)
Other income (expense), net 5 - 125 99
--- --- --- ---
Total other income (expense) (20,460) (18,115) (77,697) (72,137)
------- ------- ------- -------
Income (loss) from continuing operations before taxes 62,172 51,628 155,212 145,156
Provision for income taxes for continuing operations - benefit (expense) (24,131) (20,121) (60,696) (57,065)
------- ------- ------- -------
Income (loss) from continuing operations 38,041 31,507 94,516 88,091
Income (loss) from discontinued operations (405) (449) (1,323) (1,780)
---- ---- ------ ------
Net income (loss) $37,636 $31,058 $93,193 $86,311
======= ======= ======= =======
Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations $0.84 $0.63 $2.06 $1.73
Earnings (loss) per share from discontinued operations (0.01) (0.01) (0.03) (0.03)
Earnings (loss) per common share $0.83 $0.62 $2.03 $1.70
===== ===== ===== =====
Weighted average common shares outstanding 45,341 50,278 45,948 50,883
Gross Margin Data (Continuing Operations):
New retail vehicles 5.3% 5.4% 5.0% 5.2%
Fleet vehicles (0.3%) 0.1% 0.3% (0.3%)
Total new vehicles 5.2% 5.3% 5.0% 5.1%
Used vehicles 6.4% 6.4% 6.3% 6.5%
Wholesale vehicles (3.3%) (5.8%) (3.5%) (4.7%)
Parts, service and collision repair 48.4% 49.0% 47.8% 48.8%
Finance, insurance and other 100.0% 100.0% 100.0% 100.0%
Overall gross margin 14.5% 14.7% 14.7% 14.7%
SG&A Expenses (Continuing Operations):
Compensation $167,724 $169,510 $674,617 $666,668
Advertising 15,840 15,470 61,674 61,630
Rent 18,638 18,481 73,903 73,539
Other 64,933 71,541 300,662 308,728
Total SG&A expenses $267,135 $275,002 $1,110,856 $1,110,565
SG&A expenses as % of gross profit 71.9% 75.6% 77.7% 78.5%
Operating Margin % 3.2% 2.8% 2.4% 2.3%
Unit Data (Continuing Operations):
New retail units 35,188 35,228 134,288 138,129
Fleet units 374 628 1,715 1,872
Total new units 35,562 35,856 136,003 140,001
Used units 29,621 28,220 119,174 117,123
Wholesale units 9,086 6,594 35,098 30,168
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Per Share Data
Three Months Ended December 31, 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 44,764 $38,041 $(405) $37,636
Effect of participating securities:
Non-vested restricted stock (22) - (22)
--- --- ---
Basic earnings (loss) and shares 44,764 $38,019 $0.85 $(405) $(0.01) $37,614 $0.84
Effect of dilutive securities:
Stock compensation plans 577
Diluted earnings (loss) and shares 45,341 $38,019 $0.84 $(405) $(0.01) $37,614 $0.83
====== ======= ===== ===== ====== ======= =====
Adjustments:
OEM Settlement $(14,836) $ - $(14,836)
Impairment charges 1,824 - 1,824
Storm damage and other (411) 450 39
Total adjustments before taxes (13,423) 450 (12,973)
Income tax effect of above adjustments 5,210 (153) 5,057
Effect of adjustments, net of income taxes $(8,213) $(0.18) $297 $0.01 $(7,916) $(0.17)
Adjusted:
Earnings (loss) and
diluted earnings (loss) per share (1) $29,828 $0.66 $(108) $ - $29,720 $0.66
===== ============= =====
(1) Net loss attributable to EchoPark(R)operations was $0.03 per fully diluted share in the three months ended December 31, 2016
Three Months Ended December 31, 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 49,872 $1,507 $(449) $31,058
Effect of participating securities:
Non-vested restricted stock (13) - (13)
--- --- ---
Basic earnings (loss) and shares 49,872 $31,494 $0.63 $(449) $(0.01) $31,045 $0.62
Effect of dilutive securities:
Stock compensation plans 406
---
Diluted earnings (loss) and shares 50,278 $31,494 $0.63 $(449) $(0.01) $31,045 $0.62
====== ======= ===== ===== ====== ======= =====
Adjustments:
Gain on disposal $(2,323) $ - $(2,323)
Impairment charges 1,257 - 1,257
Total adjustments before taxes (1,066) - (1,066)
Income tax effect of above adjustments 415 - 415
Effect of adjustments, net of income taxes $(651) $(0.02) $ - $ - $(651) $(0.02)
----- -------------- -----
Adjusted:
Earnings (loss) and
diluted earnings (loss) per share (2) $30,856 $0.61 $(449) $(0.01) $30,407 $0.60
===== ====== =====
(2) Net loss attributable to EchoPark(R)operations was $0.04 per fully diluted share in the three months ended December 31, 2015
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Per Share Data
Twelve Months Ended December 31, 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 45,637 $94,516 $(1,323) $93,193
Effect of participating securities:
Non-vested restricted stock (52) - (52)
--- --- ---
Basic earnings (loss) and shares 45,637 $94,464 $2.07 $(1,323) $(0.03) $93,141 $2.04
Effect of dilutive securities:
Stock compensation plans 311
---
Diluted earnings (loss) and shares 45,948 $94,464 $2.06 $(1,323) $(0.03) $93,141 $2.03
====== ======= ===== ======= ====== ======= =====
Adjustments:
OEM Settlement $(14,836) $ - $(14,836)
Impairment charges 7,913 - 7,913
Storm damage and other 3,290 927 4,217
Total adjustments before taxes (3,633) 927 (2,706)
Income tax effect of above adjustments 1,394 (341) 1,053
Effect of adjustments, net of income taxes $(2,239) $(0.05) $586 $0.01 $(1,653) $(0.04)
------- ---- -------
Adjusted:
Earnings (loss) and
diluted earnings (loss) per share (3) $92,277 $2.01 $(737) $(0.02) $91,540 $1.99
===== ====== =====
(3) Net loss attributable to EchoPark(R)operations was $0.17 per fully diluted share in the twelve months ended December 31, 2016
Twelve Months Ended December 31, 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 50,489 $88,091 $(1,780) $86,311
Effect of participating securities:
Non-vested restricted stock (36) - (36)
--- --- ---
Basic earnings (loss) and shares 50,489 $88,055 $1.74 $(1,780) $(0.03) $86,275 $1.71
Effect of dilutive securities:
Stock compensation plans 394
---
Diluted earnings (loss) and shares 50,883 $88,055 $1.73 $(1,780) $(0.03) $86,275 $1.70
====== ======= ===== ======= ====== ======= =====
Adjustments:
Gain on disposal $(3,279) $ - $(3,279)
Impairment charges 17,918 - 17,918
Storm damage and other 5,138 - 5,138
Total adjustments before taxes 19,777 - 19,777
Income tax effect of above adjustments (7,713) - (7,713)
Effect of adjustments, net of income taxes $12,064 $0.24 $ - $(0.01) $12,064 $0.23
------- --------------- -------
Adjusted:
Earnings (loss) and
diluted earnings (loss) per share (4) $100,155 $1.97 $(1,780) $(0.04) $98,375 $1.93
===== ====== =====
(4) Net loss attributable to EchoPark(R) operations was $0.19 per fully diluted share in the twelve months ended December 31, 2015
Sonic Automotive, Inc.
Results of Operations (Unaudited)
New Vehicles
Three Months Ended December 31, Better / (Worse)
------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $1,408,327 $1,399,762 $8,565 0.6%
Gross profit $73,916 $74,209 $(293) (0.4%)
Unit sales 35,562 35,856 (294) (0.8%)
Revenue per unit $39,602 $39,038 $564 1.4%
Gross profit per unit $2,079 $2,070 $9 0.4%
Gross profit as a % of revenue 5.2% 5.3% (10) bps
Twelve Months Ended December 31, Better / (Worse)
-------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $5,234,505 $5,265,401 $(30,896) (0.6%)
Gross profit $260,594 $267,929 $(7,335) (2.7%)
Unit sales 136,003 140,001 (3,998) (2.9%)
Revenue per unit $38,488 $37,610 $878 2.3%
Gross profit per unit $1,916 $1,914 $2 0.1%
Gross profit as a % of revenue 5.0% 5.1% (10) bps
Three Months Ended December 31, Better / (Worse)
------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $1,393,218 $1,394,423 $(1,205) (0.1%)
Gross profit $73,391 $74,428 $(1,037) (1.4%)
Unit sales 35,261 35,726 (465) (1.3%)
Revenue per unit $39,512 $39,031 $481 1.2%
Gross profit per unit $2,081 $2,083 $(2) (0.1%)
Gross profit as a % of revenue 5.3% 5.3% - bps
Twelve Months Ended December 31, Better / (Worse)
-------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $5,214,210 $5,221,517 $(7,307) (0.1%)
Gross profit $259,403 $266,632 $(7,229) (2.7%)
Unit sales 135,605 138,901 (3,296) (2.4%)
Revenue per unit $38,451 $37,592 $859 2.3%
Gross profit per unit $1,913 $1,920 $(7) (0.4%)
Gross profit as a % of revenue 5.0% 5.1% (10) bps
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Used Vehicles
Three Months Ended December 31, Better / (Worse)
------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $651,608 $607,430 $44,178 7.3%
Gross profit $41,464 $38,772 $2,692 6.9%
Unit sales 29,621 28,220 1,401 5.0%
Revenue per unit $21,998 $21,525 $473 2.2%
Gross profit per unit $1,400 $1,374 $26 1.9%
Gross profit as a % of revenue 6.4% 6.4% - bps
Twelve Months Ended December 31, Better / (Worse)
-------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $2,533,122 $2,512,024 $21,098 0.8%
Gross profit $158,585 $162,042 $(3,457) (2.1%)
Unit sales 119,174 117,123 2,051 1.8%
Revenue per unit $21,256 $21,448 $(192) (0.9%)
Gross profit per unit $1,331 $1,384 $(53) (3.8%)
Gross profit as a % of revenue 6.3% 6.5% (20) bps
Three Months Ended December 31, Better / (Worse)
------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $632,856 $603,026 $29,830 4.9%
Gross profit $38,591 $38,681 $(90) (0.2%)
Unit sales 28,781 28,000 781 2.8%
Revenue per unit $21,989 $21,537 $452 2.1%
Gross profit per unit $1,341 $1,381 $(40) (2.9%)
Gross profit as a % of revenue 6.1% 6.4% (30) bps
Twelve Months Ended December 31, Better / (Worse)
-------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $2,502,267 $2,481,090 $21,177 0.9%
Gross profit $156,841 $161,743 $(4,902) (3.0%)
Unit sales 117,814 115,549 2,265 2.0%
Revenue per unit $21,239 $21,472 $(233) (1.1%)
Gross profit per unit $1,331 $1,400 $(69) (4.9%)
Gross profit as a % of revenue 6.3% 6.5% (20) bps
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Wholesale Vehicles
Three Months Ended December 31, Better / (Worse)
------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $57,906 $34,579 $23,327 67.5%
Gross profit (loss) $(1,890) $(2,003) $113 5.6%
Unit sales 9,086 6,594 2,492 37.8%
Revenue per unit $6,373 $5,244 $1,129 21.5%
Gross profit (loss) per unit $(208) $(304) $96 31.6%
Gross profit (loss) as a % of revenue (3.3%) (5.8%) 250 bps
Twelve Months Ended December 31, Better / (Worse)
-------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $211,048 $155,339 $55,709 35.9%
Gross profit (loss) $(7,316) $(7,368) $52 0.7%
Unit sales 35,098 30,168 4,930 16.3%
Revenue per unit $6,013 $5,149 $864 16.8%
Gross profit (loss) per unit $(208) $(244) $36 14.8%
Gross profit (loss) as a % of revenue (3.5%) (4.7%) 120 bps
Three Months Ended December 31, Better / (Worse)
------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $56,696 $34,436 $22,260 64.6%
Gross profit (loss) $(1,762) $(1,898) $136 7.2%
Unit sales 8,845 6,569 2,276 34.6%
Revenue per unit $6,410 $5,242 $1,168 22.3%
Gross profit (loss) per unit $(199) $(289) $90 31.1%
Gross profit (loss) as a % of revenue (3.1%) (5.5%) 240 bps
Twelve Months Ended December 31, Better / (Worse)
-------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $209,323 $153,705 $55,618 36.2%
Gross profit (loss) $(7,062) $(6,969) $(93) (1.3%)
Unit sales 34,798 29,869 4,929 16.5%
Revenue per unit $6,015 $5,146 $869 16.9%
Gross profit (loss) per unit $(203) $(233) $30 12.9%
Gross profit (loss) as a % of revenue (3.4%) (4.5%) 110 bps
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Parts, Service and Collision Repair ("Fixed Operations")
Three Months Ended December 31, Better / (Worse)
------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
Reported: (In thousands)
Revenue
Customer pay $139,550 $145,787 $(6,237) (4.3%)
Warranty 67,656 58,923 8,733 14.8%
Wholesale parts 43,337 44,602 (1,265) (2.8%)
Internal, sublet and other 100,183 95,756 4,427 4.6%
Total $350,726 $345,068 $5,658 1.6%
======== ======== ======
Gross profit
Customer pay $73,958 $79,475 $(5,517) (6.9%)
Warranty 36,973 31,795 5,178 16.3%
Wholesale parts 7,450 7,917 (467) (5.9%)
Internal, sublet and other 51,519 49,887 1,632 3.3%
Total $169,900 $169,074 $826 0.5%
======== ======== ====
Gross profit as a % of revenue
Customer pay 53.0% 54.5% (150) bps
Warranty 54.6% 54.0% 60 bps
Wholesale parts 17.2% 17.8% (60) bps
Internal, sublet and other 51.4% 52.1% (70) bps
Total 48.4% 49.0% (60) bps
Twelve Months Ended December 31, Better / (Worse)
-------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
Reported: (In thousands)
Revenue
Customer pay $582,557 $577,265 $5,292 0.9%
Warranty 240,415 228,093 12,322 5.4%
Wholesale parts 176,870 181,296 (4,426) (2.4%)
Internal, sublet and other 409,977 378,293 31,684 8.4%
Total $1,409,819 $1,364,947 $44,872 3.3%
========== ========== =======
Gross profit
Customer pay $314,791 $316,026 $(1,235) (0.4%)
Warranty 129,924 126,571 3,353 2.6%
Wholesale parts 30,754 32,249 (1,495) (4.6%)
Internal, sublet and other 198,657 190,575 8,082 4.2%
Total $674,126 $665,421 $8,705 1.3%
======== ======== ======
Gross profit as a % of revenue
Customer pay 54.0% 54.7% (70) bps
Warranty 54.0% 55.5% (150) bps
Wholesale parts 17.4% 17.8% (40) bps
Internal, sublet and other 48.5% 50.4% (190) bps
Total 47.8% 48.8% (100) bps
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Parts, Service and Collision Repair ("Fixed Operations")
Three Months Ended December 31, Better / (Worse)
------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
Same Store: (In thousands)
Revenue
Customer pay $138,954 $145,057 $(6,103) (4.2%)
Warranty 67,386 58,637 8,749 14.9%
Wholesale parts 43,320 44,353 (1,033) (2.3%)
Internal, sublet and other 98,692 95,272 3,420 3.6%
Total $348,352 $343,319 $5,033 1.5%
======== ======== ======
Gross profit
Customer pay $73,667 $79,057 $(5,390) (6.8%)
Warranty 36,802 31,641 5,161 16.3%
Wholesale parts 7,448 7,864 (416) (5.3%)
Internal, sublet and other 50,876 49,713 1,163 2.3%
Total $168,793 $168,275 $518 0.3%
======== ======== ====
Gross profit as a % of revenue
Customer pay 53.0% 54.5% (150) bps
Warranty 54.6% 54.0% 60 bps
Wholesale parts 17.2% 17.7% (50) bps
Internal, sublet and other 51.6% 52.2% (60) bps
Total 48.5% 49.0% (50) bps
Twelve Months Ended December 31, Better / (Worse)
-------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
Same Store: (In thousands)
Revenue
Customer pay $581,642 $569,924 $11,718 2.1%
Warranty 240,065 225,572 14,493 6.4%
Wholesale parts 176,850 178,958 (2,108) (1.2%)
Internal, sublet and other 407,371 374,003 33,368 8.9%
Total $1,405,928 $1,348,457 $57,471 4.3%
========== ========== =======
Gross profit
Customer pay $314,342 $311,926 $2,416 0.8%
Warranty 129,721 125,255 4,466 3.6%
Wholesale parts 30,752 31,770 (1,018) (3.2%)
Internal, sublet and other 196,758 188,423 8,335 4.4%
Total $671,573 $657,374 $14,199 2.2%
======== ======== =======
Gross profit as a % of revenue
Customer pay 54.0% 54.7% (70) bps
Warranty 54.0% 55.5% (150) bps
Wholesale parts 17.4% 17.8% (40) bps
Internal, sublet and other 48.3% 50.4% (210) bps
Total 47.8% 48.8% (100) bps
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Finance, Insurance and Other, Net ("F&I")
Three Months Ended December 31, Better / (Worse)
------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except per unit data)
Reported:
Revenue $88,346 $83,796 $4,550 5.4%
Gross profit per retail unit (excludes fleet) $1,363 $1,321 $42 3.2%
Twelve Months Ended December 31, Better / (Worse)
-------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except per unit data)
Reported:
Revenue $343,285 $326,588 $16,697 5.1%
Gross profit per retail unit (excludes fleet) $1,354 $1,279 $75 5.9%
Three Months Ended December 31, Better / (Worse)
------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except per unit data)
Same Store:
Revenue $85,445 $83,393 $2,052 2.5%
Gross profit per retail unit (excludes fleet) $1,342 $1,322 $20 1.5%
Twelve Months Ended December 31, Better / (Worse)
-------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except per unit data)
Same Store:
Revenue $338,733 $323,556 $15,177 4.7%
Gross profit per retail unit (excludes fleet) $1,346 $1,281 $65 5.1%
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Selling, General and Administrative ("SG&A") Expenses
Three Months Ended December 31, Better / (Worse)
------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands)
Reported:
Compensation $167,724 $169,510 $1,786 1.1%
Advertising 15,840 15,470 (370) (2.4%)
Rent 18,638 18,481 (157) (0.8%)
Other 64,933 71,541 6,608 9.2%
------ ------
Total SG&A expenses $267,135 $275,002 $7,867 2.9%
-------- -------- ------
Adjustments:
OEM Settlement $14,836 $ -
Storm damage and other 411 -
Gain on disposal - 2,323
Total SG&A adjustments $15,247 $2,323
Adjusted:
Total adjusted SG&A expenses $282,382 $277,325 $(5,057) (1.8%)
======== ========
Reported:
SG&A expenses as a % of gross profit
Compensation 45.1% 46.6% 150 bps
Advertising 4.3% 4.3% 0 bps
Rent 5.0% 5.1% 10 bps
Other 17.5% 19.6% 210 bps
Total SG&A expenses as a % of gross profit 71.9% 75.6% 370 bps
---- ---- ---
Adjustments:
OEM Settlement 4.0% 0.0%
Storm damage and other 0.1% 0.0%
Gain on disposal 0.0% 0.6%
Total effect of adjustments 4.1% 0.6%
Adjusted:
Total adjusted SG&A as a % of gross profit 76.0% 76.2% 20 bps
==== ==== ===
Twelve Months Ended December 31, Better / (Worse)
-------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands)
Reported:
Compensation $674,617 $666,668 $(7,949) (1.2%)
Advertising 61,674 61,630 (44) (0.1%)
Rent 73,903 73,539 (364) (0.5%)
Other 300,662 308,728 8,066 2.6%
Total SG&A expenses $1,110,856 $1,110,565 $(291) (0.0%)
---------- ---------- -----
Adjustments:
OEM Settlement $14,836 $ -
Storm damage and other (3,290) (5,138)
Gain on disposal - 3,279
Total SG&A adjustments $11,546 $(1,859)
Adjusted:
Total adjusted SG&A expenses $1,122,402 $1,108,706 $(13,696) (1.2%)
========== ==========
Reported:
SG&A expenses as a % of gross profit
Compensation 47.2% 47.1% (10) bps
Advertising 4.3% 4.4% 10 bps
Rent 5.2% 5.2% 0 bps
Other 21.0% 21.8% 80 bps
Total SG&A expenses as a % of gross profit 77.7% 78.5% 80 bps
---- ---- ---
Adjustments:
OEM Settlement 1.0% 0.0%
Storm damage and other (0.2%) (0.3%)
Gain on disposal 0.0% 0.2%
Total effect of adjustments 0.8% (0.1%)
Adjusted:
Total adjusted SG&A as a % of gross profit 78.5% 78.4% (10) bps
==== ==== ===
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sonic-automotive-inc-reports-record-results-300410347.html
SOURCE Sonic Automotive, Inc.
