SONIC AUTOMOTIVE, INC. CHARLOTTE, N.C., Nov. 1, 2016 /PRNewswire/ --
Third Quarter 2016 Highlights
-- All-time record quarterly used retail unit sales of 30,933, up 1.5% over
the prior year quarter
-- Record third quarter fixed operations gross profit of $170.0 million, up
0.2% over the prior year quarter with one less selling day
-- All-time record F&I quarterly gross profit of $89.6 million, up 4.4%
over the prior year quarter
-- EchoPark(®) stores retail 1,458 units, up 58.5% from the prior year
quarter - five stores operational in the Denver market
Sonic Automotive, Inc. (NYSE: SAH), one of the nation's largest automotive retailers, today reported financial results for the third quarter of 2016.
GAAP Basis
Net income from continuing operations for the third quarter of 2016 was $19.0 million, or $0.42 per diluted share. Included in these amounts are net pre-tax charges totaling $3.7 million, or $0.05 per diluted share, consisting of fixed asset impairment charges (relating to a facility construction project and the abandonment of certain construction projects) which were partially offset by favorable storm-related physical damage and legal accrual adjustments. Also included in the reported amounts for the third quarter of 2016 is a net loss from operations related to EchoPark(®) of $2.3 million, or $0.05 per diluted share.
Net income from continuing operations for the third quarter of 2015 was $27.1 million, or $0.53 per diluted share. Included in these reported amounts is a net loss from operations related to EchoPark(®) of $2.2 million, or $0.04 per diluted share.
Adjusted Basis
Adjusted net income from continuing operations for the third quarter of 2016 was $21.2 million, or $0.47 per diluted share. Excluded from these adjusted amounts are the impairment of fixed assets, physical damage and legal adjustments discussed above (see attached tables for additional information and reconciliation of reported GAAP basis amounts to adjusted balances).
There were no adjusted amounts for the third quarter of 2015.
Commentary
Jeff Dyke, Sonic's EVP of Operations, stated, "We had another record quarter in fixed operations, F&I and pre-owned, but did face headwinds during the quarter. Stop-sale vehicles, BMW brand performance and weakness in one of our most profitable markets, Houston, negatively impacted our results. Given BMW's brand performance during the quarter and that BMW stores represent over 30% of our profitability, we were negatively impacted. We have absolute confidence in the BMW brand and are working with our partners at BMW to address this bump in the road, which we view as a short-term issue. We are making progress with our stop-sale inventory with less than 2,200 units on hand at the end of the third quarter of 2016 compared to nearly 4,700 units on hand at the end of the second quarter of 2016. Finally, we expect weakness to continue in the Houston market, especially in our high-line stores, through at least the end of the year as we believe the energy sector's recovery may take time to gain some momentum."
"Our One Sonic-One Experience ("OSOE") stores are also making good progress and we plan to launch the technology in our first BMW store in the first quarter of 2017. The technology, pricing tools and OSOE playbook have continued to develop nicely and we are excited to see how these tools can be leveraged in a BMW retail operation. We are confident that the implementation of OSOE will greatly enhance our BMW customers' buying experience as our EchoPark(®) stores and current OSOE stores boast some of the very highest social media reputation scores in the industry."
B. Scott Smith, Sonic's Chief Executive Officer, noted, "We continued to execute our long-term strategies during a challenging third quarter. Expansion of EchoPark(®) is continuing with two new stores operating during the quarter. We are very excited that combined, our original three stores generated positive cash during the third quarter. Our sixth Denver market store, located in Colorado Springs, will open during the first half of 2017. In addition, we will break ground on our first Texas locations in the first half of 2017."
"We are also very excited to announce the progress we are making with our open-points. Our new Mercedes-Benz open-point in McKinney, Texas began operations during the quarter. We expect this store to contribute in excess of $100 million in revenue once it is completely ramped up. The Nissan open-point in Cleveland, Tennessee, with expected annual revenues in excess of $30 million, will open before the end of the current year. Lastly, our Pensacola Audi open-point broke ground during the quarter and is expected to open in the first quarter of 2017. Once fully operational, we anticipate this store will produce annual revenues in excess of $50 million. We continue to work with our manufacturer partners and anticipate further growth via additional open-points over the next several years."
"Lastly, our commitment to return capital to shareholders continued during the quarter as we repurchased approximately 579,000 Class A shares for roughly $10.0 million and declared a dividend with an expected payment of $2.2 million. This brings our year-to-date annual return of capital to shareholders through stock repurchases to $97.5 million. Coupled with dividends declared during 2016 of $9.0 million, we will have returned over $100 million to shareholders so far in 2016."
"Based on results experienced so far this year and uncertainty related to new vehicle margins in the fourth quarter, we are adjusting our earnings guidance range. We currently estimate diluted earnings per share from continuing operations for the fourth quarter of 2016 will range from $0.59 to $0.69 and $1.95 to $2.05 on an adjusted basis for the full year of 2016. This guidance does not include the effect of any amounts related to an anticipated settlement with VW expected to be finalized by the end of the year."
Dividend
Sonic's Board of Directors approved a quarterly dividend of $0.05 per share payable in cash for stockholders of record on December 15, 2016. The dividend will be payable on January 13, 2017.
Third 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 "Webcasts & Presentations."
Presentation materials for the conference call can be accessed on the Company's website at www.sonicautomotive.com by clicking on the "Investor Relations" tab under "Our Company" and choosing "Webcasts & Presentations."
The conference call will also be available live by dialing in 10 minutes prior to the start of the call at:
Domestic: 1.877.450.3867
International: 1.706.643.0958
Conference ID: 96968408
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: 96968408
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, anticipated improved profitability in the fourth quarter of 2016, anticipated continued weakness in the Houston market, anticipated launch of OSOE technology in new markets in the first quarter of 2017, anticipated opening dates for and anticipated future annual revenues from previously-announced open-point dealerships, anticipated additional open-point dealerships in future years, and anticipated diluted earnings per share from continuing operations for the fourth quarter and the full year ending December 31, 2016. 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 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 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 September 30, Nine Months Ended September 30,
-------------------------------- -------------------------------
2016 2015 2016 2015
---- ---- ---- ----
(In thousands, except per share and unit data)
Revenues:
New retail vehicles $1,364,842 $1,352,180 $3,784,122 $3,828,027
Fleet vehicles 10,302 15,849 42,056 37,612
Total new vehicles 1,375,144 1,368,029 3,826,178 3,865,639
Used vehicles 660,974 652,058 1,881,514 1,904,594
Wholesale vehicles 70,522 37,971 153,141 120,760
------ ------ ------- -------
Total vehicles 2,106,640 2,058,058 5,860,833 5,890,993
Parts, service and collision repair 361,709 350,520 1,059,093 1,019,878
Finance, insurance and other, net 89,579 85,830 254,940 242,792
------ ------ ------- -------
Total revenues 2,557,928 2,494,408 7,174,866 7,153,663
Gross profit 359,085 360,251 1,057,540 1,050,764
Selling, general and administrative expenses (282,141) (280,041) (843,721) (835,564)
Impairment charges (6,089) (37) (6,240) (16,698)
Depreciation and amortization (19,928) (17,250) (57,302) (50,953)
------- ------- ------- -------
Operating income (loss) 50,927 62,923 150,277 147,549
Other income (expense):
Interest expense, floor plan (6,672) (5,364) (19,797) (15,488)
Interest expense, other, net (13,016) (12,361) (37,560) (38,635)
Other income (expense), net 11 - 120 102
--- --- --- ---
Total other income (expense) (19,677) (17,725) (57,237) (54,021)
------- ------- ------- -------
Income (loss) from continuing operations before taxes 31,250 45,198 93,040 93,528
Provision for income taxes for continuing operations - benefit (expense) (12,281) (18,095) (36,565) (36,944)
------- ------- ------- -------
Income (loss) from continuing operations 18,969 27,103 56,475 56,584
Income (loss) from discontinued operations (858) (598) (918) (1,331)
---- ---- ---- ------
Net income (loss) $18,111 $26,505 $55,557 $55,253
======= ======= ======= =======
Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations $0.42 $0.53 $1.22 $1.11
Earnings (loss) per share from discontinued operations (0.02) (0.01) (0.02) (0.03)
Earnings (loss) per common share $0.40 $0.52 $1.20 $1.08
===== ===== ===== =====
Weighted average common shares outstanding 45,354 50,769 46,130 51,086
Gross Margin Data (Continuing Operations):
New retail vehicles 4.6% 4.8% 4.9% 5.1%
Fleet vehicles 0.3% (0.8%) 0.5% (0.5%)
Total new vehicles 4.5% 4.8% 4.9% 5.0%
Used vehicles 6.0% 6.4% 6.2% 6.5%
Wholesale vehicles (3.6%) (6.5%) (3.5%) (4.4%)
Parts, service and collision repair 47.0% 48.4% 47.6% 48.7%
Finance, insurance and other 100.0% 100.0% 100.0% 100.0%
Overall gross margin 14.0% 14.4% 14.7% 14.7%
SG&A Expenses (Continuing Operations):
Compensation $171,287 $167,489 $506,894 $497,158
Advertising 14,987 15,470 45,834 46,160
Rent 18,037 18,558 55,265 55,058
Other 77,830 78,524 235,728 237,188
Total SG&A expenses $282,141 $280,041 $843,721 $835,564
SG&A expenses as % of gross profit 78.6% 77.7% 79.8% 79.5%
Operating Margin % 2.0% 2.5% 2.1% 2.1%
Unit Data (Continuing Operations):
New retail units 35,715 36,891 99,100 102,901
Fleet units 339 602 1,341 1,244
Total new units 36,054 37,493 100,441 104,145
Used units 30,933 30,467 89,553 88,903
Wholesale units 10,377 7,787 26,012 23,574
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Per Share Data
Three Months Ended September 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 45,118 $18,969 $(858) $18,111
Effect of participating securities:
Non-vested restricted stock (11) - (11)
--- --- ---
Basic earnings (loss) and shares 45,118 $18,958 $0.42 $(858) $(0.02) $18,100 $0.40
Effect of dilutive securities:
Stock compensation plans 236
Diluted earnings (loss) and shares 45,354 $18,958 $0.42 $(858) $(0.02) $18,100 $0.40
====== ======= ===== ===== ====== ======= =====
Adjustments:
Impairment charges $6,089 $ - $6,089
Storm damage and other (2,341) 1,000 (1,341)
Total adjustments before taxes 3,748 1,000 4,748
Income tax effect of above adjustments (1,473) (390) (1,863)
Effect of adjustments, net of income taxes $2,275 $0.05 $610 $0.01 $2,885 $0.06
Adjusted:
Earnings (loss) and
diluted earnings (loss) per share (1) $21,244 $0.47 $(248) $(0.01) $20,996 $0.46
===== ====== =====
(1) Net loss attributable to EchoPark(R) operations was $0.05 per fully diluted share in the three months ended September 30, 2016
Three Months Ended September 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 50,456 $27,103 $(598) $26,505
Effect of participating securities:
Non-vested restricted stock (13) - (13)
--- --- ---
Basic earnings (loss) and shares 50,456 $27,090 $0.54 $(598) $(0.01) $26,492 $0.53
Effect of dilutive securities:
Stock compensation plans 313
---
Diluted earnings (loss) and shares (2) 50,769 $27,090 $0.53 $(598) $(0.01) $26,492 $0.52
====== ======= ===== ===== ====== ======= =====
(2) Net loss attributable to EchoPark(R) operations was $0.04 per fully diluted share in the three months ended September 30, 2015
Per Share Data
Nine Months Ended September 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 45,930 $56,475 $(918) $55,557
Effect of participating securities:
Non-vested restricted stock (31) - (31)
--- --- ---
Basic earnings (loss) and shares 45,930 $56,444 $1.23 $(918) $(0.02) $55,526 $1.21
Effect of dilutive securities:
Stock compensation plans 200
---
Diluted earnings (loss) and shares 46,130 $56,444 $1.22 $(918) $(0.02) $55,526 $1.20
====== ======= ===== ===== ====== ======= =====
Adjustments:
Impairment charges $6,089 $ - $6,089
Storm damage and other 3,702 477 4,179
Total adjustments before taxes 9,791 477 10,268
Income tax effect of above adjustments (3,818) (187) (4,005)
Effect of adjustments, net of income taxes $5,973 $0.13 $290 $0.01 $6,263 $0.14
------ ---- ------
Adjusted:
Earnings (loss) and
diluted earnings (loss) per share (3) $62,448 $1.35 $(628) $(0.01) $61,820 $1.34
===== ====== =====
(3) Net loss attributable to EchoPark(R) operations was $0.14 per fully diluted share in the nine months ended September 30, 2016
Nine Months Ended September 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 50,697 $56,584 $(1,331) $55,253
Effect of participating securities:
Non-vested restricted stock (27) - (27)
--- --- ---
Basic earnings (loss) and shares 50,697 $56,557 $1.12 $(1,331) $(0.03) $55,226 $1.09
Effect of dilutive securities:
Stock compensation plans 389
---
Diluted earnings (loss) and shares 51,086 $56,557 $1.11 $(1,331) $(0.03) $55,226 $1.08
====== ======= ===== ======= ====== ======= =====
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) $69,299 $1.36 $(1,331) $(0.03) $67,968 $1.33
===== ====== =====
(4) Net loss attributable to EchoPark(R) operations was $0.15 per fully diluted share in the nine months ended September 30, 2015
Sonic Automotive, Inc.
Results of Operations (Unaudited)
New Vehicles
Three Months Ended September 30, Better / (Worse)
-------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $1,375,144 $1,368,029 $7,115 0.5%
Gross profit $62,388 $65,435 $(3,047) (4.7%)
Unit sales 36,054 37,493 (1,439) (3.8%)
Revenue per unit $38,141 $36,488 $1,653 4.5%
Gross profit per unit $1,730 $1,745 $(15) (0.9%)
Gross profit as a % of
revenue 4.5% 4.8% (30)
bps
Nine Months Ended September 30, Better / (Worse)
------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $3,826,178 $3,865,639 $(39,461) (1.0%)
Gross profit $186,678 $193,720 $(7,042) (3.6%)
Unit sales 100,441 104,145 (3,704) (3.6%)
Revenue per unit $38,094 $37,118 $976 2.6%
Gross profit per unit $1,859 $1,860 $(1) (0.1%)
Gross profit as a % of
revenue 4.9% 5.0% (10)
bps
Three Months Ended September 30, Better / (Worse)
-------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $1,369,958 $1,354,798 $15,160 1.1%
Gross profit $61,794 $64,853 $(3,059) (4.7%)
Unit sales 35,957 37,164 (1,207) (3.2%)
Revenue per unit $38,100 $36,455 $1,645 4.5%
Gross profit per unit $1,719 $1,745 $(26) (1.5%)
Gross profit as a % of
revenue 4.5% 4.8% (30) bps
Nine Months Ended September 30, Better / (Worse)
------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $3,820,992 $3,827,094 $(6,102) (0.2%)
Gross profit $186,011 $192,204 $(6,193) (3.2%)
Unit sales 100,344 103,175 (2,831) (2.7%)
Revenue per unit $38,079 $37,093 $986 2.7%
Gross profit per unit $1,854 $1,863 $(9) (0.5%)
Gross profit as a % of
revenue 4.9% 5.0% (10)
bps
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Used Vehicles
Three Months Ended September 30, Better / (Worse)
-------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $660,974 $652,058 $8,916 1.4%
Gross profit $39,622 $41,730 $(2,108) (5.1%)
Unit sales 30,933 30,467 466 1.5%
Revenue per unit $21,368 $21,402 $(34) (0.2%)
Gross profit per unit $1,281 $1,370 $(89) (6.5%)
Gross profit as a % of
revenue 6.0% 6.4% (40)
bps
Nine Months Ended September 30, Better / (Worse)
------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $1,881,514 $1,904,594 $(23,080) (1.2%)
Gross profit $117,121 $123,271 $(6,150) (5.0%)
Unit sales 89,553 88,903 650 0.7%
Revenue per unit $21,010 $21,423 $(413) (1.9%)
Gross profit per unit $1,308 $1,387 $(79) (5.7%)
Gross profit as a % of
revenue 6.2% 6.5% (30)
bps
Three Months Ended September 30, Better / (Worse)
-------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $649,308 $644,255 $5,053 0.8%
Gross profit $39,862 $41,726 $(1,864) (4.5%)
Unit sales 30,433 30,053 380 1.3%
Revenue per unit $21,336 $21,437 $(101) (0.5%)
Gross profit per unit $1,310 $1,388 $(78) (5.6%)
Gross profit as a % of
revenue 6.1% 6.5% (40)
bps
Nine Months Ended September 30, Better / (Worse)
------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $1,869,441 $1,878,064 $(8,623) (0.5%)
Gross profit $118,250 $123,062 $(4,812) (3.9%)
Unit sales 89,033 87,549 1,484 1.7%
Revenue per unit $20,997 $21,452 $(455) (2.1%)
Gross profit per unit $1,328 $1,406 $(78) (5.5%)
Gross profit as a % of
revenue 6.3% 6.6% (30)
bps
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Wholesale Vehicles
Three Months Ended September 30, Better / (Worse)
-------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $70,522 $37,971 $32,551 85.7%
Gross profit (loss) $(2,507) $(2,481) $(26) (1.0%)
Unit sales 10,377 7,787 2,590 33.3%
Revenue per unit $6,796 $4,876 $1,920 39.4%
Gross profit (loss) per
unit $(242) $(319) $77 24.1%
Gross profit (loss) as a
% of revenue (3.6%) (6.5%) 290
bps
Nine Months Ended September 30, Better / (Worse)
------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Reported:
Revenue $153,141 $120,760 $32,381 26.8%
Gross profit (loss) $(5,425) $(5,366) $(59) (1.1%)
Unit sales 26,012 23,574 2,438 10.3%
Revenue per unit $5,887 $5,123 $764 14.9%
Gross profit (loss) per
unit $(209) $(228) $19 8.3%
Gross profit (loss) as a
% of revenue (3.5%) (4.4%) 90
bps
Three Months Ended September 30, Better / (Worse)
-------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $70,029 $37,599 $32,430 86.3%
Gross profit (loss) $(2,385) $(2,420) $35 1.4%
Unit sales 10,323 7,722 2,601 33.7%
Revenue per unit $6,784 $4,869 $1,915 39.3%
Gross profit (loss) per
unit $(231) $(313) $82 26.2%
Gross profit (loss) as a
% of revenue (3.4%) (6.4%) 300
bps
Nine Months Ended September 30, Better / (Worse)
------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except units and per unit data)
Same Store:
Revenue $152,627 $119,269 $33,358 28.0%
Gross profit (loss) $(5,300) $(5,072) $(228) (4.5%)
Unit sales 25,953 23,300 2,653 11.4%
Revenue per unit $5,881 $5,119 $762 14.9%
Gross profit (loss) per
unit $(204) $(218) $14 6.4%
Gross profit (loss) as a
% of revenue (3.5%) (4.3%) 80
bps
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Parts, Service and Collision Repair ("Fixed Operations")
Three Months Ended September 30, Better / (Worse)
-------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
Reported: (In thousands)
Revenue
Customer pay $146,365 $147,308 $(943) (0.6%)
Warranty 60,388 58,522 1,866 3.2%
Wholesale parts 44,202 45,832 (1,630) (3.6%)
Internal, sublet and other 110,754 98,858 11,896 12.0%
Total $361,709 $350,520 $11,189 3.2%
======== ======== =======
Gross profit
Customer pay $79,153 $80,588 $(1,435) (1.8%)
Warranty 32,176 32,337 (161) (0.5%)
Wholesale parts 7,566 8,045 (479) (6.0%)
Internal, sublet and other 51,108 48,767 2,341 4.8%
Total $170,003 $169,737 $266 0.2%
======== ======== ====
Gross profit as a % of
revenue
Customer pay 54.1% 54.7% (60)
bps
Warranty 53.3% 55.3% (200)
bps
Wholesale parts 17.1% 17.6% (50)
bps
Internal, sublet and other 46.1% 49.3% (320)
bps
Total 47.0% 48.4% (140)
bps
Nine Months Ended September 30, Better / (Worse)
------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
Reported: (In thousands)
Revenue
Customer pay $443,007 $431,479 $11,528 2.7%
Warranty 172,759 169,170 3,589 2.1%
Wholesale parts 133,533 136,693 (3,160) (2.3%)
Internal, sublet and other 309,794 282,536 27,258 9.6%
Total $1,059,093 $1,019,878 $39,215 3.8%
========== ========== =======
Gross profit
Customer pay $240,833 $236,551 $4,282 1.8%
Warranty 92,951 94,776 (1,825) (1.9%)
Wholesale parts 23,305 24,332 (1,027) (4.2%)
Internal, sublet and other 147,137 140,688 6,449 4.6%
Total $504,226 $496,347 $7,879 1.6%
======== ======== ======
Gross profit as a % of
revenue
Customer pay 54.4% 54.8% (40)
bps
Warranty 53.8% 56.0% (220)
bps
Wholesale parts 17.5% 17.8% (30)
bps
Internal, sublet and other 47.5% 49.8% (230)
bps
Total 47.6% 48.7% (110)
bps
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Parts, Service and Collision Repair ("Fixed Operations")
Three Months Ended September 30, Better / (Worse)
-------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
Same Store: (In thousands)
Revenue
Customer pay $146,048 $145,938 $110 0.1%
Warranty 60,307 57,858 2,449 4.2%
Wholesale parts 44,199 45,270 (1,071) (2.4%)
Internal, sublet and other 109,657 97,765 11,892 12.2%
Total $360,211 $346,831 $13,380 3.9%
======== ======== =======
Gross profit
Customer pay $78,995 $79,791 $(796) (1.0%)
Warranty 32,094 32,042 52 0.2%
Wholesale parts 7,565 7,916 (351) (4.4%)
Internal, sublet and other 50,345 48,116 2,229 4.6%
Total $168,999 $167,865 $1,134 0.7%
======== ======== ======
Gross profit as a % of
revenue
Customer pay 54.1% 54.7% (60)
bps
Warranty 53.2% 55.4% (220)
bps
Wholesale parts 17.1% 17.5% (40)
bps
Internal, sublet and other 45.9% 49.2% (330)
bps
Total 46.9% 48.4% (150)
bps
Nine Months Ended September 30, Better / (Worse)
------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
Same Store: (In thousands)
Revenue
Customer pay $442,688 $424,867 $17,821 4.2%
Warranty 172,678 166,934 5,744 3.4%
Wholesale parts 133,530 134,605 (1,075) (0.8%)
Internal, sublet and other 308,680 278,733 29,947 10.7%
Total $1,057,576 $1,005,139 $52,437 5.2%
========== ========== ======= ===
Gross profit
Customer pay $240,675 $232,869 $7,806 3.4%
Warranty 92,919 93,614 (695) (0.7%)
Wholesale parts 23,304 23,906 (602) (2.5%)
Internal, sublet and other 145,882 138,710 7,172 5.2%
Total $502,780 $489,099 $13,681 2.8%
======== ======== ======= ===
Gross profit as a % of
revenue
Customer pay 54.4% 54.8% (40)
bps
Warranty 53.8% 56.1% (230)
bps
Wholesale parts 17.5% 17.8% (30)
bps
Internal, sublet and other 47.3% 49.8% (250)
bps
Total 47.5% 48.7% (120)
bps
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Finance, Insurance and Other, Net ("F&I")
Three Months Ended September 30, Better / (Worse)
-------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except per unit data)
Reported:
Revenue $89,579 $85,830 $3,749 4.4%
Gross profit per retail
unit (excludes fleet) $1,344 $1,274 $70 5.5%
Nine Months Ended September 30, Better / (Worse)
------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except per unit data)
Reported:
Revenue $254,940 $242,792 $12,148 5.0%
Gross profit per retail
unit (excludes fleet) $1,351 $1,266 $85 6.7%
Three Months Ended September 30, Better / (Worse)
-------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except per unit data)
Same Store:
Revenue $88,551 $84,981 $3,570 4.2%
Gross profit per retail
unit (excludes fleet) $1,341 $1,276 $65 5.1%
Nine Months Ended September 30, Better / (Worse)
------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands, except per unit data)
Same Store:
Revenue $253,287 $240,163 $13,124 5.5%
Gross profit per retail
unit (excludes fleet) $1,347 $1,267 $80 6.3%
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Selling, General and Administrative ("SG&A") Expenses
Three Months Ended September 30, Better / (Worse)
-------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands)
Reported:
Compensation $171,287 $167,489 $(3,798) (2.3%)
Advertising 14,987 15,470 483 3.1%
Rent 18,037 18,558 521 2.8%
Other 77,830 78,524 694 0.9%
------ ------
Total SG&A expenses $282,141 $280,041 $(2,100) (0.7%)
-------- -------- -------
Adjustments:
Storm damage and other $2,341 $ - $2,341 100.0%
Total SG&A adjustments $2,341 $ - $2,341 100.0%
Adjusted:
Total adjusted SG&A expenses $284,482 $280,041 $(4,441) (1.6%)
======== ======== =======
Reported:
SG&A expenses as a % of gross profit
Compensation 47.7% 46.5% (120)
bps
Advertising 4.2% 4.3% 10
bps
Rent 5.0% 5.2% 20
bps
Other 21.7% 21.7% (0)
bps
Total SG&A expenses as a % of gross
profit 78.6% 77.7% (90)
bps
Adjustments:
Storm damage and other 0.6% 0.0% (60)
bps
Total effect of adjustments 0.6% 0.0% (60)
bps
Adjusted:
Total adjusted SG&A as a % of gross
profit 79.2% 77.7% (150)
bps
Nine Months Ended September 30, Better / (Worse)
------------------------------- ----------------
2016 2015 Change % Change
---- ---- ------ --------
(In thousands)
Reported:
Compensation $506,894 $497,158 $(9,736) (2.0%)
Advertising 45,834 46,160 326 0.7%
Rent 55,265 55,058 (207) (0.4%)
Other 235,728 237,188 1,460 0.6%
Total SG&A expenses $843,721 $835,564 $(8,157) (1.0%)
-------- -------- -------
Adjustments:
Gain on disposal $ - $955 $(955) (100.0%)
Storm damage and other (3,702) (5,138) 1,436 27.9%
Total SG&A adjustments $(3,702) $(4,183) $481 11.5%
Adjusted:
Total adjusted SG&A expenses $840,019 $831,381 $(8,638) (1.0%)
======== ======== =======
Reported:
SG&A expenses as a % of gross profit
Compensation 47.9% 47.3% (60)
bps
Advertising 4.3% 4.4% 10
bps
Rent 5.2% 5.2% 0
bps
Other 22.4% 22.6% 20
bps
Total SG&A expenses as a % of gross
profit 79.8% 79.5% (30)
bps
Adjustments:
Gain on disposal 0.0% 0.1% 10
bps
Storm damage and other (0.4%) (0.5%) (10)
bps
Total effect of adjustments (0.4%) (0.4%) -
bps
Adjusted:
Total adjusted SG&A as a % of gross
profit 79.4% 79.1% (30)
bps
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sonic-automotive-inc-reports-third-quarter-earnings-300354814.html
SOURCE Sonic Automotive, Inc.
