SONIC AUTOMOTIVE, INC. CHARLOTTE, N.C., July 28, 2017 /PRNewswire/ -- Sonic Automotive, Inc. (NYSE: SAH), one of the nation's largest automotive retailers, today reported financial results for the second quarter of 2017.
Second Quarter 2017 Results & Announcements
-- EchoPark stores retailed 2,049 units, up 80.4% over the prior year
quarter
-- Accelerated expansion of an additional 15 EchoPark stores by the end of
2018
-- Record Q2 pre-owned units of 30,536 contributing gross profit of $40.0
million
-- All-time record quarterly fixed operations gross profit of $173.1
million, up 2.9% over the prior year quarter
-- Record Q2 F&I gross profit and gross profit per retail unit of $86.9
million and $1,379, respectively
-- Record Q2 total gross profit of $360.6 million, up 2.1% over the prior
year quarter
-- Repurchased 1.2 million Class A shares (approximately 2.6% of
outstanding stock) for $22.0 million and declared $0.05/share dividend
-- GAAP continuing operations net income of $12.3 million with EPS of $0.27
per diluted share
-- Adjusted continuing operations net income of $17.9 million with adjusted
EPS of $0.40 per diluted share
GAAP Basis
Net income from continuing operations for the second quarter of 2017 was $12.3 million, or $0.27 per diluted share. These results include charges related to fixed asset impairments, weather-related physical damage costs, legal matters, and charges associated with closing and relocating stores. Also included in the GAAP reported amounts for the second quarter of 2017 is a net after-tax loss from operations related to EchoPark of $4.7 million, or $0.11 per diluted share.
Comparatively, net income from continuing operations for the second quarter of 2016 was $23.0 million, or $0.50 per diluted share. Included in the GAAP reported amounts for the second quarter of 2016 is a net after-tax loss from operations related to EchoPark of $2.0 million, or $0.04 per diluted share.
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 second quarter of 2017 was $17.9 million, or $0.40 per diluted share. There were no adjustments in the second quarter of 2016. The adjustments in the 2017 quarterly period relate to fixed asset impairments, weather-related physical damage costs, legal matters, and charges associated with closing and relocating stores.
Commentary
Jeff Dyke, Sonic's EVP of Operations, stated, "Given our performance at EchoPark, we are accelerating our expansion into the Carolinas, Florida, Georgia and Texas markets. Our Colorado stores were cash flow positive in the quarter. Currently, we have more than 15 locations in the aforementioned markets that will break ground in 2017 and 2018."
"The new vehicle retail sales environment continues to be challenging in Houston and across certain brands. Our exposure to BMW, coupled with economic conditions in Houston's energy corridor, pressured sales and profitability in the second quarter. On a same store basis, our new vehicle unit sales declined 3.0% compared to the prior year quarter. This decline was slightly higher than the overall SAAR decline of 2.9%. Other parts of the business, however, continue to experience growth. We were able to grow used vehicle, fixed operations and F&I (finance and insurance) gross profit during the quarter which is a testament to the dealer operating model. In addition, our operations and financial management teams have been busy during the quarter adjusting our cost structure in various areas to compensate for increased competition that has pressured margins. We expect this highly competitive retail landscape to continue and possibly intensify over the next several quarters as dealers balance volume and gross per unit expectations."
B. Scott Smith, the Company's Chief Executive Officer, noted, "Our activities in the quarter continue to support our long-term growth strategies. During the second quarter, we opened our new open point Audi store in Pensacola, Florida and our sixth EchoPark store in Colorado. We believe these investments will offer strong earning streams as the underlying businesses mature. Year to date, we also invested approximately $30 million returning capital to stockholders through dividends and share repurchases. Our facilities teams have been extremely busy as well, evidenced by the $121 million invested in capital expenditures during the first half of 2017. We are committed to offering the best customer buying experience in the industry, which includes state of the art facilities at both our franchised dealerships and EchoPark stores."
"Based on results experienced in the first half of the year and our forecast for the remainder of 2017, we are updating our earnings guidance. We currently project adjusted diluted earnings per share from continuing operations for 2017 to be between $1.85 and $1.95 per share ($1.49 and $1.59 per diluted share, on an unadjusted GAAP basis). This range includes the effect of projected EchoPark results and expansion. We are also now projecting an adjusted loss related to EchoPark for 2017 of between $0.29 and $0.33 per diluted share ($0.32 and $0.36 per diluted share, on an unadjusted GAAP basis). We will have additional comments on our guidance 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 September 15, 2017. The dividend will be payable on October 13, 2017.
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: 48697046
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: 48697046
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. More information about EchoPark Automotive can be found at www.echopark.com.
Forward Looking Statements
Included herein are forward-looking statements, including statements with respect to our 2017 earnings expectations, our long-term strategy, the anticipated expansion of our EchoPark business and our franchised dealerships, and our expectation that the highly competitive retail landscape will continue and possibly intensify over the next several quarters. 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 ended December 31, 2016. 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 non-GAAP financial 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.
Results of Operations
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2017 2016 2017 2016
---- ---- ---- ----
(In thousands, except per share and unit data)
Revenues:
New retail vehicles $1,247,318 $1,269,843 $2,394,699 $2,419,280
Fleet vehicles 27,751 16,621 52,302 31,754
Total new vehicles 1,275,069 1,286,464 2,447,001 2,451,034
Used vehicles 641,891 622,186 1,276,364 1,220,540
Wholesale vehicles 40,765 38,245 87,076 82,620
------ ------ ------ ------
Total vehicles 1,957,725 1,946,895 3,810,441 3,754,194
Parts, service and collision repair 361,113 351,329 713,156 697,384
Finance, insurance and other, net 86,908 84,088 169,971 165,361
------ ------ ------- -------
Total revenues 2,405,746 2,382,312 4,693,568 4,616,939
Gross profit 360,618 353,305 710,965 698,455
Selling, general and administrative expenses (293,931) (277,204) (586,165) (561,580)
Impairment charges (2,605) (151) (3,115) (151)
Depreciation and amortization (21,911) (18,905) (43,065) (37,374)
------- ------- ------- -------
Operating income (loss) 42,171 57,045 78,620 99,350
Other income (expense):
Interest expense, floor plan (9,144) (6,690) (17,531) (13,126)
Interest expense, other, net (12,764) (12,205) (26,172) (24,544)
Other income (expense), net 7 6 (14,495) 110
--- --- ------- ---
Total other income (expense) (21,901) (18,889) (58,198) (37,560)
------- ------- ------- -------
Income (loss) from continuing operations before taxes 20,270 38,156 20,422 61,790
Provision for income taxes for continuing operations - benefit (expense) (7,956) (15,113) (8,128) (24,283)
------ ------- ------ -------
Income (loss) from continuing operations 12,314 23,043 12,294 37,507
Income (loss) from discontinued operations (182) (221) (703) (61)
---- ---- ---- ---
Net income (loss) $12,132 $22,822 $11,591 $37,446
======= ======= ======= =======
Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations $0.27 $0.50 $0.27 $0.81
Earnings (loss) per share from discontinued operations - - (0.01) (0.01)
Earnings (loss) per common share $0.27 $0.50 $0.26 $0.80
===== ===== ===== =====
Weighted average common shares outstanding 44,810 45,924 44,976 46,523
Gross Margin Data (Continuing Operations):
New retail vehicles 5.1% 5.2% 5.1% 5.1%
Fleet vehicles (2.8%) 0.9% (1.9%) 0.6%
Total new vehicles 4.9% 5.1% 4.9% 5.1%
Used vehicles 6.2% 5.9% 6.3% 6.3%
Wholesale vehicles (4.7%) (4.8%) (3.5%) (3.5%)
Parts, service and collision repair 47.9% 47.9% 48.0% 47.9%
Finance, insurance and other 100.0% 100.0% 100.0% 100.0%
Overall gross margin 15.0% 14.8% 15.1% 15.1%
SG&A Expenses (Continuing Operations):
Compensation $171,182 $166,560 $347,729 $335,601
Advertising 15,344 15,499 30,602 30,847
Rent 19,110 18,508 37,598 37,228
Other 88,295 76,637 170,236 157,904
Total SG&A expenses $293,931 $277,204 $586,165 $561,580
SG&A expenses as % of gross profit 81.5% 78.5% 82.4% 80.4%
Operating Margin % 1.8% 2.4% 1.7% 2.2%
Unit Data (Continuing Operations):
New retail units 32,466 33,229 62,336 63,385
Fleet units 682 553 1,307 1,002
Total new units 33,148 33,782 63,643 64,387
Used units 30,536 29,287 60,908 58,620
Wholesale units 7,783 7,212 16,090 15,635
Per Share Data
Three Months Ended June 30, 2017
--------------------------------
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 44,570 $12,314 $(182) $12,132
Effect of participating securities:
Non-vested restricted stock (9) - (9)
--- --- ---
Basic earnings (loss) and shares 44,570 $12,305 $0.28 $(182) $(0.01) $12,123 $0.27
Effect of dilutive securities:
Stock compensation plans 240
Diluted earnings (loss) and shares 44,810 $12,305 $0.27 $(182) $ - $12,123 $0.27
====== ======= ===== ===== ============= ======= =====
Adjustments:
Impairment charges $2,605 $ - $2,605
Storm damage 4,618 - 4,618
Legal accruals and settlements 1,000 - 1,000
Lease exit adjustments 992 - 992
Total adjustments before taxes 9,215 - 9,215
Income tax effect of above adjustments (3,617) - (3,617)
Effect of adjustments, net of income taxes $5,598 $0.13 $ - $ - $5,598 $0.13
Adjusted:
Earnings (loss) and
diluted earnings (loss) per share (1) $17,912 $0.40 $(182) $ - $17,730 $0.40
===== ============= =====
(1) Net loss attributable to EchoPark(R)operations was $0.07 per fully diluted share in the three months ended June 30, 2017.
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 (2) 45,924 $23,030 $0.50 $(221) $ - $22,809 $0.50
====== ======= ===== ===== ============= ======= =====
(2) Net loss attributable to EchoPark(R)operations was $0.04 per fully diluted share in the three months ended June 30, 2016.
Per Share Data
Six Months Ended June 30, 2017
------------------------------
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 44,680 $12,294 $(703) $11,591
Effect of participating securities:
Non-vested restricted stock (9) - (9)
--- --- ---
Basic earnings (loss) and shares 44,680 $12,285 $0.27 $(703) $(0.01) $11,582 $0.26
Effect of dilutive securities:
Stock compensation plans 296
---
Diluted earnings (loss) and shares 44,976 $12,285 $0.27 $(703) $(0.01) $11,582 $0.26
====== ======= ===== ===== ====== ======= =====
Adjustments:
Impairment charges $3,115 $ - $3,115
Storm damage 7,000 - 7,000
Legal accruals and settlements (149) - (149)
Lease exit adjustments 992 - 992
Loss on debt extinguishment 15,268 - 15,268
Total adjustments before taxes 26,226 - 26,226
Income tax effect of above adjustments (10,294) - (10,294)
Effect of adjustments, net of income taxes $15,932 $0.36 $ - $(0.01) $15,932 $0.35
------- --------------- -------
Adjusted:
Earnings (loss) and
diluted earnings (loss) per share (3) $28,226 $0.63 $(703) $(0.02) $27,523 $0.61
===== ====== =====
(3) Net loss attributable to EchoPark(R)operations was $0.15 per fully diluted share in the six months ended June 30, 2017.
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
Lease exit adjustments - (523) (523)
----
Total adjustments before taxes 6,043 (523) 5,520
Income tax effect of above adjustments (2,345) 203 (2,142)
Effect of adjustments, net of income taxes $3,698 $0.08 $(320) $ - $3,378 $0.08
------ ----- ------
Adjusted:
Earnings (loss) and
diluted earnings (loss) per share (4) $41,205 $0.89 $(381) $(0.01) $40,824 $0.88
===== ====== =====
(4) Net loss attributable to EchoPark(R) operations was $0.09 per fully diluted share in the six months ended June 30, 2016.
New Vehicles
Three Months Ended June 30, Better / (Worse)
--------------------------- ----------------
2017 2016 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $1,275,069 $1,286,464 $(11,395) (0.9%)
Gross profit $62,522 $65,866 $(3,344) (5.1%)
Unit sales 33,148 33,782 (634) (1.9%)
Revenue per unit $38,466 $38,081 $385 1.0%
Gross profit per unit $1,886 $1,950 $(64) (3.3%)
Gross profit as a % of revenue 4.9% 5.1% (20) bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2017 2016 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $2,447,001 $2,451,034 $(4,033) (0.2%)
Gross profit $120,800 $124,290 $(3,490) (2.8%)
Unit sales 63,643 64,387 (744) (1.2%)
Revenue per unit $38,449 $38,067 $382 1.0%
Gross profit per unit $1,898 $1,930 $(32) (1.7%)
Gross profit as a % of revenue 4.9% 5.1% (20) bps
Three Months Ended June 30, Better / (Worse)
--------------------------- ----------------
2017 2016 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $1,258,531 $1,286,464 $(27,933) (2.2%)
Gross profit $61,477 $65,842 $(4,365) (6.6%)
Unit sales 32,767 33,782 (1,015) (3.0%)
Revenue per unit $38,408 $38,081 $327 0.9%
Gross profit per unit $1,876 $1,949 $(73) (3.7%)
Gross profit as a % of revenue 4.9% 5.1% (20) bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2017 2016 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $2,416,646 $2,451,034 $(34,388) (1.4%)
Gross profit $119,034 $124,217 $(5,183) (4.2%)
Unit sales 62,955 64,387 (1,432) (2.2%)
Revenue per unit $38,387 $38,067 $320 0.8%
Gross profit per unit $1,891 $1,929 $(38) (2.0%)
Gross profit as a % of revenue 4.9% 5.1% (20) bps
Used Vehicles
Three Months Ended June 30, Better / (Worse)
--------------------------- ----------------
2017 2016 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $641,891 $622,186 $19,705 3.2%
Gross profit $40,035 $36,969 $3,066 8.3%
Unit sales 30,536 29,287 1,249 4.3%
Revenue per unit $21,021 $21,244 $(223) (1.0%)
Gross profit per unit $1,311 $1,262 $49 3.9%
Gross profit as a % of revenue 6.2% 5.9% 30 bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2017 2016 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $1,276,364 $1,220,540 $55,824 4.6%
Gross profit $80,867 $77,499 $3,368 4.3%
Unit sales 60,908 58,620 2,288 3.9%
Revenue per unit $20,956 $20,821 $135 0.6%
Gross profit per unit $1,328 $1,322 $6 0.5%
Gross profit as a % of revenue 6.3% 6.3% 0 bps
Three Months Ended June 30, Better / (Worse)
--------------------------- ----------------
2017 2016 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $618,082 $621,748 $(3,666) (0.6%)
Gross profit $37,209 $35,919 $1,290 3.6%
Unit sales 29,388 29,267 121 0.4%
Revenue per unit $21,032 $21,244 $(212) (1.0%)
Gross profit per unit $1,266 $1,227 $39 3.2%
Gross profit as a % of revenue 6.0% 5.8% 20 bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2017 2016 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $1,233,473 $1,220,103 $13,370 1.1%
Gross profit $75,495 $74,910 $585 0.8%
Unit sales 58,846 58,600 246 0.4%
Revenue per unit $20,961 $20,821 $140 0.7%
Gross profit per unit $1,283 $1,278 $5 0.4%
Gross profit as a % of revenue 6.1% 6.1% 0 bps
Wholesale Vehicles
Three Months Ended June 30, Better / (Worse)
--------------------------- ----------------
2017 2016 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $40,765 $38,245 $2,520 6.6%
Gross profit (loss) $(1,917) $(1,839) $(78) (4.2%)
Unit sales 7,783 7,212 571 7.9%
Revenue per unit $5,238 $5,303 $(65) (1.2%)
Gross profit (loss) per unit $(246) $(255) $9 3.5%
Gross profit (loss) as a % of revenue (4.7%) (4.8%) 10 bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2017 2016 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $87,076 $82,620 $4,456 5.4%
Gross profit (loss) $(3,087) $(2,917) $(170) (5.8%)
Unit sales 16,090 15,635 455 2.9%
Revenue per unit $5,412 $5,284 $128 2.4%
Gross profit (loss) per unit $(192) $(187) $(5) (2.7%)
Gross profit (loss) as a % of revenue (3.5%) (3.5%) 0 bps
Three Months Ended June 30, Better / (Worse)
--------------------------- ----------------
2017 2016 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $39,524 $38,246 $1,278 3.3%
Gross profit (loss) $(1,909) $(1,840) $(69) (3.8%)
Unit sales 7,577 7,212 365 5.1%
Revenue per unit $5,216 $5,303 $(87) (1.6%)
Gross profit (loss) per unit $(252) $(255) $3 1.2%
Gross profit (loss) as a % of revenue (4.8%) (4.8%) 0 bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2017 2016 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $84,784 $82,599 $2,185 2.6%
Gross profit (loss) $(2,994) $(2,915) $(79) (2.7%)
Unit sales 15,697 15,630 67 0.4%
Revenue per unit $5,401 $5,285 $116 2.2%
Gross profit (loss) per unit $(191) $(187) $(4) (2.1%)
Gross profit (loss) as a % of revenue (3.5%) (3.5%) 0 bps
Parts, Service and Collision Repair ("Fixed Operations")
Three Months Ended June 30, Better / (Worse)
--------------------------- ----------------
2017 2016 Change % Change
---- ---- ------ --------
Reported: (In thousands)
Revenue
Customer pay $139,194 $149,248 $(10,054) (6.7%)
Warranty 72,661 54,812 17,849 32.6%
Wholesale parts 42,806 44,021 (1,215) (2.8%)
Internal, sublet and other 106,452 103,248 3,204 3.1%
Total $361,113 $351,329 $9,784 2.8%
======== ======== ======
Gross profit
Customer pay $74,344 $81,323 $(6,979) (8.6%)
Warranty 40,319 29,449 10,870 36.9%
Wholesale parts 7,331 7,797 (466) (6.0%)
Internal, sublet and other 51,076 49,652 1,424 2.9%
Total $173,070 $168,221 $4,849 2.9%
======== ======== ======
Gross profit as a % of revenue
Customer pay 53.4% 54.5% (110) bps
Warranty 55.5% 53.7% 180 bps
Wholesale parts 17.1% 17.7% (60) bps
Internal, sublet and other 48.0% 48.1% (10) bps
Total 47.9% 47.9% 0 bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2017 2016 Change % Change
---- ---- ------ --------
Reported: (In thousands)
Revenue
Customer pay $277,328 $296,642 $(19,314) (6.5%)
Warranty 142,579 112,371 30,208 26.9%
Wholesale parts 86,087 89,331 (3,244) (3.6%)
Internal, sublet and other 207,162 199,040 8,122 4.1%
Total $713,156 $697,384 $15,772 2.3%
======== ======== =======
Gross profit
Customer pay $147,784 $161,680 $(13,896) (8.6%)
Warranty 78,989 60,775 18,214 30.0%
Wholesale parts 14,881 15,738 (857) (5.4%)
Internal, sublet and other 100,760 96,029 4,731 4.9%
Total $342,414 $334,222 $8,192 2.5%
======== ======== ======
Gross profit as a % of revenue
Customer pay 53.3% 54.5% (120) bps
Warranty 55.4% 54.1% 130 bps
Wholesale parts 17.3% 17.6% (30) bps
Internal, sublet and other 48.6% 48.2% 40 bps
Total 48.0% 47.9% 10 bps
Parts, Service and Collision Repair ("Fixed Operations")
Three Months Ended June 30, Better / (Worse)
--------------------------- ----------------
2017 2016 Change % Change
---- ---- ------ --------
Same Store: (In thousands)
Revenue
Customer pay $138,408 $149,246 $(10,838) (7.3%)
Warranty 72,325 54,812 17,513 32.0%
Wholesale parts 42,478 44,021 (1,543) (3.5%)
Internal, sublet and other 103,273 103,231 42 0.0%
Total $356,484 $351,310 $5,174 1.5%
======== ======== ======
Gross profit
Customer pay $73,942 $81,322 $(7,380) (9.1%)
Warranty 40,129 29,543 10,586 35.8%
Wholesale parts 7,239 7,797 (558) (7.2%)
Internal, sublet and other 49,803 49,470 333 0.7%
Total $171,113 $168,132 $2,981 1.8%
======== ======== ======
Gross profit as a % of revenue
Customer pay 53.4% 54.5% (110) bps
Warranty 55.5% 53.9% 160 bps
Wholesale parts 17.0% 17.7% (70) bps
Internal, sublet and other 48.2% 47.9% 30 bps
Total 48.0% 47.9% 10 bps
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2017 2016 Change % Change
---- ---- ------ --------
Same Store: (In thousands)
Revenue
Customer pay $275,827 $296,640 $(20,813) (7.0%)
Warranty 141,914 112,371 29,543 26.3%
Wholesale parts 85,705 89,331 (3,626) (4.1%)
Internal, sublet and other 202,482 199,023 3,459 1.7%
Total $705,928 $697,365 $8,563 1.2%
======== ======== ======
Gross profit
Customer pay $147,031 $161,679 $(14,648) (9.1%)
Warranty 78,568 60,825 17,743 29.2%
Wholesale parts 14,776 15,739 (963) (6.1%)
Internal, sublet and other 98,216 95,538 2,678 2.8%
Total $338,591 $333,781 $4,810 1.4%
======== ======== ======
Gross profit as a % of revenue
Customer pay 53.3% 54.5% (120) bps
Warranty 55.4% 54.1% 130 bps
Wholesale parts 17.2% 17.6% (40) bps
Internal, sublet and other 48.5% 48.0% 50 bps
Total 48.0% 47.9% 10 bps
Finance, Insurance and Other, Net ("F&I")
Three Months Ended June 30, Better / (Worse)
--------------------------- ----------------
2017 2016 Change % Change
---- ---- ------ --------
(In thousands, except per unit data)
Reported:
Revenue $86,908 $84,088 $2,820 3.4%
Gross profit per retail unit (excludes fleet) $1,379 $1,345 $34 2.5%
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2017 2016 Change % Change
---- ---- ------ --------
(In thousands, except per unit data)
Reported:
Revenue $169,971 $165,361 $4,610 2.8%
Gross profit per retail unit (excludes fleet) $1,379 $1,355 $24 1.8%
Three Months Ended June 30, Better / (Worse)
--------------------------- ----------------
2017 2016 Change % Change
---- ---- ------ --------
(In thousands, except per unit data)
Same Store:
Revenue $84,457 $83,884 $573 0.7%
Gross profit per retail unit (excludes fleet) $1,374 $1,342 $32 2.4%
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2017 2016 Change % Change
---- ---- ------ --------
(In thousands, except per unit data)
Same Store:
Revenue $165,318 $164,736 $582 0.4%
Gross profit per retail unit (excludes fleet) $1,372 $1,350 $22 1.6%
Selling, General and Administrative ("SG&A") Expenses
Three Months Ended June 30, Better / (Worse)
--------------------------- ----------------
2017 2016 Change % Change
---- ---- ------ --------
(In thousands)
Reported:
Compensation $171,182 $166,560 $(4,622) (2.8%)
Advertising 15,344 15,499 155 1.0%
Rent 19,110 18,508 (602) (3.3%)
Other 88,295 76,637 (11,658) (15.2%)
------ ------
Total SG&A expenses $293,931 $277,204 $(16,727) (6.0%)
-------- -------- --------
Adjustments:
Storm damage $(4,618) $ -
Legal accruals and settlements (1,000) -
Lease exit adjustments (992) -
Total SG&A adjustments $(6,610) $ -
Adjusted:
Total adjusted SG&A expenses $287,321 $277,204 $(10,117) (3.6%)
======== ========
Reported:
SG&A expenses as a % of gross profit
Compensation 47.5% 47.1% (40) bps
Advertising 4.3% 4.4% 10 bps
Rent 5.3% 5.2% (10) bps
Other 24.4% 21.8% (260) bps
Total SG&A expenses as a % of gross profit 81.5% 78.5% (300) bps
---- ---- ----
Adjustments:
Storm damage (1.2%) 0.0%
Legal accruals and settlements (0.3%) 0.0%
Lease exit adjustments (0.3%) 0.0%
Total effect of adjustments (1.8%) 0.0%
Adjusted:
Total adjusted SG&A as a % of gross profit 79.7% 78.5% (120) bps
==== ====
Selling, General and Administrative ("SG&A") Expenses
Six Months Ended June 30, Better / (Worse)
------------------------- ----------------
2017 2016 Change % Change
---- ---- ------ --------
(In thousands)
Reported:
Compensation $347,729 $335,601 $(12,128) (3.6%)
Advertising 30,602 30,847 245 0.8%
Rent 37,598 37,228 (370) (1.0%)
Other 170,236 157,904 (12,332) (7.8%)
Total SG&A expenses $586,165 $561,580 $(24,585) (4.4%)
-------- -------- --------
Adjustments:
Storm damage $(7,000) $(6,043)
Legal accruals and settlements 149 -
Lease exit adjustments (992) -
Total SG&A adjustments $(7,843) $(6,043)
Adjusted:
Total adjusted SG&A expenses $578,322 $555,537 $(22,785) (4.1%)
======== ========
Reported:
SG&A expenses as a % of gross profit
Compensation 48.9% 48.0% (90) bps
Advertising 4.3% 4.4% 10 bps
Rent 5.3% 5.3% 0 bps
Other 23.9% 22.7% (120) bps
Total SG&A expenses as a % of gross profit 82.4% 80.4% (200) bps
---- ---- ----
Adjustments:
Storm damage (1.0%) (0.9%)
Legal accruals and settlements 0.1% 0.0%
Lease exit adjustments (0.2%) 0.0%
Total effect of adjustments (1.1%) (0.9%)
Adjusted:
Total adjusted SG&A as a % of gross profit 81.3% 79.5% (180) bps
==== ====
View original content:http://www.prnewswire.com/news-releases/sonic-automotive-inc-reports-second-quarter-results-and-echopark-expansion-300495584.html
SOURCE Sonic Automotive, Inc.
