Sonic Automotive, Inc. Reports 3rd Quarter Continuing Operations EPS of $0.46 - 15% EPS Growth

Nov 08, 2013, 07:30 ET from Sonic Automotive, Inc.

CHARLOTTE, N.C., Nov. 8, 2013 /PRNewswire/ -- Sonic Automotive, Inc. (NYSE: SAH), one of the nation's largest automotive retailers, today reported 2013 third quarter earnings from continuing operations of $24.7 million. Earnings from continuing operations per diluted share increased 15.0% to $0.46 compared to an adjusted $0.40 in the prior year quarter.  Adjusted results in the third quarter of 2012 exclude a pre-tax charge of approximately $18.5 million, or $0.19 per diluted share, related to costs associated with retiring its outstanding 5.0% Convertible Senior Notes due 2029 ("5% Notes").

Q3 2013 Highlights

  • Total revenue up 5.4% compared to the prior year quarter
  • New revenue increased $65.4 million, or 5.5%, over prior year quarter
  • Pre-owned revenue increased $31.9 million, or 6.0%, over prior year quarter
  • All-time 3rd quarter record retailing 34,087 new units (excludes fleet)
  • All-time record retailing 27,632 pre-owned units
  • Pre-owned average quarterly volume per store per month at a record level - 91 units
  • Q3 record fixed operations gross profit of $149.1 million, up $8.6 million, or 6.1%, compared to the prior year quarter
  • Q3 record finance and insurance gross profit of $68.7 million, up 6.8%, and profit per retail unit of $1,114
  • SG&A to gross profit % was 78.1%; adjusted for customer experience, pre-owned and SOX remediation costs discussed below amount was 76.7%
  • Acquired two luxury dealerships in Denver, CO

Sonic is targeting adjusted fully diluted earnings per share from continuing operations at $1.96-$2.03 for the full year 2013.

About Sonic Automotive

Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, N.C., is one of the nation's largest automotive retailers.  Sonic can be reached on the web at www.sonicautomotive.com.

Included herein are forward-looking statements, including statements with respect to anticipated growth in used vehicle sales, and future success and impacts from the implementation of our strategic initiatives.  There are many factors that affect management's views about future events and trends of the Company's business.  These factors involve risk and uncertainties that could cause actual results or trends to differ materially from management's view, including without limitation, economic conditions in the markets in which we operate, new and used vehicle industry sales volume, the success of our operational strategies, the rate and timing of overall economic recovery or decline, and the risk factors described in the Company's annual report on Form 10-K for the year ending December 31, 2012 and quarterly report on Form 10-Q for the period ended June 30, 2013.  The Company does not undertake any obligation to update forward-looking information.

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)

(Dollars and shares in thousands, except per share amounts)

This release contains certain non-GAAP financial measures (the "Adjusted" columns) as defined under SEC rules, such as, but not limited to, adjusted income from continuing operations and related earnings per share data.  The Company has reconciled these measures to the most directly comparable GAAP measures (the "Reported" columns) in the release.  The Company believes that these non-GAAP financial measures improve the transparency of the Company's disclosure by providing period-to-period comparability of the Company's results from operations.

Third Quarter Ended September 30, 2013

Third Quarter Ended September 30, 2012

Reported

Adjustments

Adjusted

Reported

Adjustments

Adjusted

Revenues:

New retail vehicles

$   1,219,525

$                -

$   1,219,525

$   1,158,524

$                -

$   1,158,524

Fleet vehicles

41,745

-

41,745

37,302

-

37,302

   Total new vehicles

1,261,270

-

1,261,270

1,195,826

-

1,195,826

Used vehicles

559,848

-

559,848

527,914

-

527,914

Wholesale vehicles

42,731

-

42,731

52,280

-

52,280

   Total vehicles

1,863,849

-

1,863,849

1,776,020

-

1,776,020

Parts, service and collision repair

309,600

-

309,600

287,311

-

287,311

Finance, insurance and other

68,747

-

68,747

64,390

-

64,390

   Total revenues

2,242,196

-

2,242,196

2,127,721

-

2,127,721

Gross profit

326,081

-

326,081

304,428

-

304,428

Selling, general and administrative expenses

(254,564)

-

(254,564)

(235,328)

-

(235,328)

Impairment charges

(18)

-

(18)

(23)

-

(23)

Depreciation and amortization

(13,744)

-

(13,744)

(11,295)

-

(11,295)

Operating income (loss)

57,755

-

57,755

57,782

-

57,782

Other income (expense):

Interest expense, floor plan

(5,463)

-

(5,463)

(4,799)

-

(4,799)

Interest expense, other, net

(13,553)

-

(13,553)

(15,632)

1,167

(1)

(14,465)

Other income (expense), net

29

-

29

(17,274)

17,320

(2)

46

   Total other income (expense)

(18,987)

-

(18,987)

(37,705)

18,487

(19,218)

Income (loss) from continuing operations before taxes

38,768

-

38,768

20,077

18,487

38,564

Provision for income taxes - benefit (expense)

(14,066)

-

(14,066)

(7,751)

(7,210)

(14,961)

Income (loss) from continuing operations

24,702

-

24,702

12,326

11,277

23,603

Income (loss) from discontinued operations

(1,375)

-

(1,375)

(2,284)

-

(2,284)

Net income (loss)

$        23,327

$                -

$        23,327

$        10,042

$        11,277

$        21,319

Diluted earnings (loss) per common share:

   Earnings (loss) per share from continuing operations

$            0.46

$                -

$            0.46

$            0.22

$            0.18

$            0.40

   Earnings (loss) per share from discontinued operations

(0.02)

-

(0.02)

(0.04)

0.01

(0.03)

   Earnings (loss) per common share

$            0.44

$                -

$            0.44

$            0.18

$            0.19

$            0.37

   Weighted average common shares outstanding

52,918

52,918

59,011

59,011

Gross Margin Data (Continuing Operations):

New retail vehicles

5.9%

5.9%

5.7%

5.7%

Fleet vehicles

2.5%

2.5%

2.5%

2.5%

   Total new vehicles

5.7%

5.7%

5.6%

5.6%

Used vehicles

7.0%

7.0%

6.7%

6.7%

Wholesale vehicles

(7.5%)

(7.5%)

(6.5%)

(6.5%)

Parts, service and collision repair

48.2%

48.2%

48.9%

48.9%

Finance, insurance and other

100.0%

100.0%

100.0%

100.0%

   Overall gross margin

14.5%

14.5%

14.3%

14.3%

SG&A Expenses (Continuing Operations):

Compensation

$      151,683

$      140,771

Advertising

14,132

12,498

Rent 

18,901

18,619

Other

69,848

63,440

   Total SG&A expenses

$      254,564

$                -

$      254,564

$      235,328

$                -

$      235,328

SG&A expenses as % of gross profit

78.1%

78.1%

77.3%

77.3%

Operating Margin %

2.6%

2.6%

2.7%

2.7%

Unit Data (Continuing Operations):

New retail units

34,087

33,264

Fleet units

1,451

1,325

   Total new units

35,538

34,589

Used units

27,632

26,610

Wholesale units

7,641

8,931

(1) Represents double-carry interest on the 7.0% Senior Subordinated Notes.

(2) Represents loss on extinguishment of the 5.0% Convertible Senior Notes.

 

 Sonic Automotive, Inc.

Results of Operations (Unaudited)

(Dollars and shares in thousands, except per share amounts)

Nine Months Ended September 30, 2013

Nine Months Ended September 30, 2012

Reported

Adjustments

Adjusted

Reported

Adjustments

Adjusted

Revenues:

New retail vehicles

$   3,520,343

$                -

$   3,520,343

$   3,286,285

$                -

$   3,286,285

Fleet vehicles

131,143

-

131,143

126,585

-

126,585

   Total new vehicles

3,651,486

-

3,651,486

3,412,870

-

3,412,870

Used vehicles

1,625,006

-

1,625,006

1,564,414

-

1,564,414

Wholesale vehicles

134,556

-

134,556

138,506

-

138,506

   Total vehicles

5,411,048

-

5,411,048

5,115,790

-

5,115,790

Parts, service and collision repair

913,290

-

913,290

875,206

-

875,206

Finance, insurance and other

203,461

-

203,461

185,737

-

185,737

   Total revenues

6,527,799

-

6,527,799

6,176,733

-

6,176,733

Gross profit

962,907

-

962,907

921,034

-

921,034

Selling, general and administrative expenses

(748,479)

-

(748,479)

(712,228)

-

(712,228)

Impairment charges

(69)

-

(69)

(57)

-

(57)

Depreciation and amortization

(39,020)

-

(39,020)

(33,399)

-

(33,399)

Operating income (loss)

175,339

-

175,339

175,350

-

175,350

Other income (expense):

Interest expense, floor plan

(16,267)

-

(16,267)

(13,919)

-

(13,919)

Interest expense, other, net

(42,302)

788

(1)

(41,514)

(45,875)

1,167

(3)

(44,708)

Other income (expense), net

(28,143)

28,235

(2)

92

(19,809)

19,898

(4)

89

   Total other income (expense)

(86,712)

29,023

(57,689)

(79,603)

21,065

(58,538)

Income (loss) from continuing operations before taxes

88,627

29,023

117,650

95,747

21,065

116,812

Provision for income taxes - benefit (expense)

(33,510)

(11,319)

(44,829)

(33,277)

(11,784)

(5)

(45,061)

Income (loss) from continuing operations

55,117

17,704

72,821

62,470

9,281

71,751

Income (loss) from discontinued operations

(1,582)

-

(1,582)

(3,751)

-

(3,751)

Net income (loss)

$        53,535

$        17,704

$        71,239

$        58,719

$          9,281

$        68,000

Diluted earnings (loss) per common share:

   Earnings (loss) per share from continuing operations

$            1.03

$            0.34

$            1.37

$            1.06

$            0.15

$            1.21

   Earnings (loss) per share from discontinued operations

(0.03)

-

(0.03)

(0.06)

-

(0.06)

   Earnings (loss) per common share

$            1.00

$            0.34

$            1.34

$            1.00

$            0.15

$            1.15

   Weighted average common shares outstanding

52,930

52,930

62,300

62,300

Gross Margin Data (Continuing Operations):

New retail vehicles

5.8%

5.8%

6.0%

6.0%

Fleet vehicles

2.7%

2.7%

2.9%

2.9%

   Total new vehicles

5.7%

5.7%

5.9%

5.9%

Used vehicles

7.1%

7.1%

7.1%

7.1%

Wholesale vehicles

(4.7%)

(4.7%)

(3.2%)

(3.2%)

Parts, service and collision repair

48.7%

48.7%

48.9%

48.9%

Finance, insurance and other

100.0%

100.0%

100.0%

100.0%

   Overall gross margin

14.8%

14.8%

14.9%

14.9%

SG&A Expenses (Continuing Operations):

Compensation

$      449,791

$      426,463

Advertising

41,282

37,107

Rent

56,344

57,198

Other

201,062

191,460

   Total SG&A expenses

$      748,479

$                -

$      748,479

$      712,228

$                -

$      712,228

SG&A expenses as % of gross profit

77.7%

77.7%

77.3%

77.3%

Operating Margin %

2.7%

2.7%

2.8%

2.8%

Unit Data (Continuing Operations):

New retail units

98,362

94,869

Fleet units

4,661

4,616

   Total new units

103,023

99,485

Used units

80,700

78,613

Wholesale units

23,291

23,736

(1) Represents double-carry interest on the 9.0% Senior Subordinated Notes.

(2) Represents loss on extinguishment of the 9.0% Senior Subordinated Notes.

(3) Represents double-carry interest on the 7.0% Senior Subordinated Notes.

(4) Represents loss on extinguishment of the 5.0% Convertible Senior Notes.

(5) Includes tax adjustments related to the settlement of certain tax matters.

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)

(Dollars and shares in thousands, except per share amounts)

Per Share Data

Third Quarter Ended September 30, 2013

Income (Loss)

Income (Loss)

From Continuing

From Discontinued

Operations

Operations

Net Income (Loss)

Weighted

Per

Per

Per

Average

Share

Share

Share

Shares

Amount

Amount

Amount

Amount

Amount

Amount

Reported:

Earnings (loss) and shares

52,553

$    24,702

$    (1,375)

$     23,327

Effect of participating securities:

   Non-vested restricted stock

      and stock units

(172)

-

(172)

Basic earnings (loss) and shares

52,553

$    24,530

$    0.47

$    (1,375)

$    (0.03)

$     23,155

$    0.44

Effect of dilutive securities:

   Stock compensation plans

365

Diluted earnings (loss) and shares

52,918

$    24,530

$    0.46

$    (1,375)

$    (0.02)

$     23,155

$    0.44

Third Quarter Ended September 30, 2012

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

Reported:

Earnings (loss) and shares

55,069

$    12,326

$    (2,284)

$     10,042

Effect of participating securities:

   Non-vested restricted stock

      and stock units            

(182)

-

(182)

Basic earnings (loss) and shares

55,069

$    12,144

$    0.22

$    (2,284)

$    (0.04)

$       9,860

$    0.18

Effect of dilutive securities:

   Contingently convertible

      debt (5.0% Convertible Notes)

3,534

618

2

620

   Stock compensation plans

408

Diluted earnings (loss) and shares

59,011

$    12,762

$    0.22

$    (2,282)

$    (0.04)

$     10,480

$    0.18

Adjustments (net of tax):

Double-carry interest

$         712

$    0.01

$             -

$          -

$          712

$    0.01

Debt extinguishment charges

10,565

0.17

-

-

10,565

0.17

Effect of two-class method & rounding

-

-

-

0.01

-

0.01

   Total adjustments

$    11,277

$    0.18

$             -

$      0.01

$     11,277

$    0.19

Adjusted:

Diluted earnings (loss) per share

$    0.40

$    (0.03)

$    0.37

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)

(Dollars and shares in thousands, except per share amounts)

Per Share Data

Nine Months Ended September 30, 2013

Income (Loss)

Income (Loss)

From Continuing

From Discontinued

Operations

Operations

Net Income (Loss)

Weighted

Per

Per

Per

Average

Share

Share

Share

Shares

Amount

Amount

Amount

Amount

Amount

Amount

Reported:

Earnings (loss) and shares

52,578

$    55,117

$    (1,582)

$     53,535

Effect of participating securities:

   Non-vested restricted stock

      and stock units

(393)

-

(393)

Basic earnings (loss) and shares

52,578

$    54,724

$    1.04

$    (1,582)

$    (0.03)

$     53,142

$    1.01

Effect of dilutive securities:

   Stock compensation plans

352

Diluted earnings (loss) and shares

52,930

$    54,724

$    1.03

$    (1,582)

$    (0.03)

$     53,142

$    1.00

Adjustments (net of tax):

Double-carry interest

$         481

$    0.01

$             -

$          -

$          481

$    0.01

Debt extinguishment charges

17,223

0.33

-

-

17,223

0.33

   Total adjustments

$    17,704

$    0.34

$             -

$          -

$     17,704

$    0.34

Adjusted:

Diluted earnings (loss) per share

$    1.37

$    (0.03)

$    1.34

Nine Months Ended September 30, 2012

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

Reported:

Earnings (loss) and shares

53,302

$    62,470

$    (3,751)

$     58,719

Effect of participating securities:

   Non-vested restricted stock

      and stock units

(949)

-

(949)

Basic earnings (loss) and shares

53,302

$    61,521

$    1.15

$    (3,751)

$    (0.07)

$     57,770

$    1.08

Effect of dilutive securities:

   Contingently convertible

      debt (5.0% Convertible Notes)

8,563

4,599

82

4,681

   Stock compensation plans

435

Diluted earnings (loss) and shares

62,300

$    66,120

$    1.06

$    (3,669)

$    (0.06)

$     62,451

$    1.00

Adjustments (net of tax):

Double-carry interest

$         712

$    0.01

$             -

$          -

$          712

$    0.01

Debt extinguishment charges

12,138

0.20

-

-

12,138

0.20

Settlement of tax matters

(3,569)

(0.06)

-

-

(3,569)

(0.06)

   Total adjustments

$      9,281

$    0.15

$             -

$          -

$       9,281

$    0.15

Adjusted:

Diluted earnings (loss) per share

$    1.21

$    (0.06)

$    1.15

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)

(In thousands, except units and per unit data)

New Vehicles

Third Quarter Ended September 30,

Better / (Worse)

2013

2012

Change

% Change

Reported:

Revenue

$            1,261,270

$            1,195,826

$       65,444

5.5%

Gross profit

$                 72,408

$                 67,312

$         5,096

7.6%

Unit sales

35,538

34,589

949

2.7%

Revenue per unit

$                 35,491

$                 34,572

$            919

2.7%

Gross profit per unit

$                   2,037

$                   1,946

$              91

4.7%

Gross profit as a % of revenue

5.7%

5.6%

10

bps

Nine Months Ended September 30,

Better / (Worse)

2013

2012

Change

% Change

Reported:

Revenue

$            3,651,486

$            3,412,870

$     238,616

7.0%

Gross profit

$               206,668

$               200,968

$         5,700

2.8%

Unit sales

103,023

99,485

3,538

3.6%

Revenue per unit

$                 35,443

$                 34,305

$         1,138

3.3%

Gross profit per unit

$                   2,006

$                   2,020

$            (14)

(0.7%)

Gross profit as a % of revenue

5.7%

5.9%

(20)

bps

Third Quarter Ended September 30,

Better / (Worse)

2013

2012

Change

% Change

Same Store:

Revenue

$            1,251,683

$            1,195,826

$       55,857

4.7%

Gross profit

$                 71,605

$                 67,443

$         4,162

6.2%

Unit sales

35,364

34,589

775

2.2%

Revenue per unit

$                 35,394

$                 34,572

$            822

2.4%

Gross profit per unit

$                   2,025

$                   1,950

$              75

3.8%

Gross profit as a % of revenue

5.7%

5.6%

10

bps

Nine Months Ended September 30,

Better / (Worse)

2013

2012

Change

% Change

Same Store:

Revenue

$            3,641,900

$            3,412,870

$     229,030

6.7%

Gross profit

$               205,894

$               201,687

$         4,207

2.1%

Unit sales

102,849

99,485

3,364

3.4%

Revenue per unit

$                 35,410

$                 34,305

$         1,105

3.2%

Gross profit per unit

$                   2,002

$                   2,027

$            (25)

(1.2%)

Gross profit as a % of revenue

5.7%

5.9%

(20)

bps

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)

(In thousands, except units and per unit data)

Used Vehicles

Third Quarter Ended September 30,

Better / (Worse)

2013

2012

Change

% Change

Reported:

Revenue

$               559,848

$               527,914

$       31,934

6.0%

Gross profit

$                 38,976

$                 35,562

$         3,414

9.6%

Unit sales

27,632

26,610

1,022

3.8%

Revenue per unit

$                 20,261

$                 19,839

$            422

2.1%

Gross profit per unit

$                   1,411

$                   1,336

$              75

5.6%

Gross profit as a % of revenue

7.0%

6.7%

30

bps

Nine Months Ended September 30,

Better / (Worse)

2013

2012

 Change

% Change

Reported:

Revenue

$            1,625,006

$            1,564,414

$       60,592

3.9%

Gross profit

$               114,615

$               110,679

$         3,936

3.6%

Unit sales

80,700

78,613

2,087

2.7%

Revenue per unit

$                 20,136

$                 19,900

$            236

1.2%

Gross profit per unit

$                   1,420

$                   1,408

$              12

0.9%

Gross profit as a % of revenue

7.1%

7.1%

0

bps

Third Quarter Ended September 30,

Better / (Worse)

2013

2012

 Change

% Change

Same Store:

Revenue

$               554,361

$               527,914

$       26,447

5.0%

Gross profit

$                 38,587

$                 34,074

$         4,513

13.2%

Unit sales

27,444

26,610

834

3.1%

Revenue per unit

$                 20,200

$                 19,839

$            361

1.8%

Gross profit per unit

$                   1,406

$                   1,280

$            126

9.8%

Gross profit as a % of revenue

7.0%

6.5%

50

bps

Nine Months Ended September 30,

Better / (Worse)

2013

2012

 Change

% Change

Same Store:

Revenue

$            1,619,519

$            1,564,414

$       55,105

3.5%

Gross profit

$               114,104

$               109,984

$         4,120

3.7%

Unit sales

80,512

78,613

1,899

2.4%

Revenue per unit

$                 20,115

$                 19,900

$            215

1.1%

Gross profit per unit

$                   1,417

$                   1,399

$              18

1.3%

Gross profit as a % of revenue

7.0%

7.0%

0

bps

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)

(In thousands, except units and per unit data)

Wholesale Vehicles

Third Quarter Ended September 30,

Better / (Worse)

2013

2012

Change

% Change

Reported:

Revenue

$                 42,731

$                 52,280

$       (9,549)

(18.3%)

Gross profit (loss)

$                  (3,197)

$                  (3,394)

$            197

5.8%

Unit sales

7,641

8,931

(1,290)

(14.4%)

Revenue per unit

$                   5,592

$                   5,854

$          (262)

(4.5%)

Gross profit (loss) per unit

$                     (418)

$                     (380)

$            (38)

(10.0%)

Gross profit (loss) as a % of revenue

(7.5%)

(6.5%)

(100)

bps

Nine Months Ended September 30,

Better / (Worse)

2013

2012

Change

% Change

Reported:

Revenue

$               134,556

$               138,506

$       (3,950)

(2.9%)

Gross profit (loss)

$                  (6,343)

$                  (4,399)

$       (1,944)

(44.2%)

Unit sales

23,291

23,736

(445)

(1.9%)

Revenue per unit

$                   5,777

$                   5,835

$            (58)

(1.0%)

Gross profit (loss) per unit

$                     (272)

$                     (185)

$            (87)

(47.0%)

Gross profit (loss) as a % of revenue

(4.7%)

(3.2%)

(150)

bps

Third Quarter Ended September 30,

Better / (Worse)

2013

2012

Change

% Change

Same Store:

Revenue

$                 42,433

$                 52,280

$       (9,847)

(18.8%)

Gross loss

$                  (3,191)

$                  (3,394)

$            203

6.0%

Unit sales

7,612

8,931

(1,319)

(14.8%)

Revenue per unit

$                   5,574

$                   5,854

$          (280)

(4.8%)

Gross loss per unit

$                     (419)

$                     (380)

$            (39)

(10.3%)

Gross loss as a % of revenue

(7.5%)

(6.5%)

(100)

bps

Nine Months Ended September 30,

Better / (Worse)

2013

2012

Change

% Change

Same Store:

Revenue

$               134,257

$               138,506

$       (4,249)

(3.1%)

Gross loss

$                  (6,336)

$                  (4,399)

$       (1,937)

(44.0%)

Unit sales

23,262

23,736

(474)

(2.0%)

Revenue per unit

$                   5,772

$                   5,835

$            (63)

(1.1%)

Gross loss per unit

$                     (272)

$                     (185)

$            (87)

(47.0%)

Gross loss as a % of revenue

(4.7%)

(3.2%)

(150)

bps

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)

(In thousands)

Parts, Service and Collision Repair ("Fixed Operations") 

Third Quarter Ended September 30,

Better / (Worse)

2013

2012

 Change

% Change

Reported:

Revenue

   Customer Pay

$               137,106

$               131,126

$         5,980

4.6%

   Warranty

45,405

40,632

4,773

11.7%

   Wholesale Parts

43,349

37,720

5,629

14.9%

   Internal, Sublet & Other

83,740

77,833

5,907

7.6%

      Total                           

$               309,600

$               287,311

$       22,289

7.8%

Gross profit

   Customer Pay

$                 75,203

$                 71,939

$         3,264

4.5%

   Warranty

24,374

21,225

3,149

14.8%

   Wholesale Parts

7,881

7,249

632

8.7%

   Internal, Sublet & Other

41,689

40,145

1,544

3.8%

      Total                           

$               149,147

$               140,558

$         8,589

6.1%

Gross profit as a % of revenue

   Customer Pay

54.9%

54.9%

0

bps

   Warranty

53.7%

52.2%

150

bps

   Wholesale Parts

18.2%

19.2%

(100)

bps

   Internal, Sublet & Other

49.8%

51.6%

(180)

bps

      Total                           

48.2%

48.9%

(70)

bps

Nine Months Ended September 30,

Better / (Worse)

2013

2012

 Change

% Change

Reported:

Revenue

   Customer Pay

$               407,252

$               395,080

$       12,172

3.1%

   Warranty

137,489

126,343

11,146

8.8%

   Wholesale Parts

124,870

115,545

9,325

8.1%

   Internal, Sublet & Other

243,679

238,238

5,441

2.3%

      Total                           

$               913,290

$               875,206

$       38,084

4.4%

Gross profit

   Customer Pay

$               224,485

$               217,840

$         6,645

3.1%

   Warranty

74,657

66,315

8,342

12.6%

   Wholesale Parts

23,158

22,250

908

4.1%

   Internal, Sublet & Other

122,206

121,644

562

0.5%

      Total                           

$               444,506

$               428,049

$       16,457

3.8%

Gross profit as a % of revenue

   Customer Pay

55.1%

55.1%

0

bps

   Warranty

54.3%

52.5%

180

bps

   Wholesale Parts

18.5%

19.3%

(80)

bps

   Internal, Sublet & Other

50.2%

51.1%

(90)

bps

      Total                           

48.7%

48.9%

(20)

bps

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)

(In thousands)

Parts, Service and Collision Repair ("Fixed Operations") 

Third Quarter Ended September 30,

Better / (Worse)

2013

2012

 Change

% Change

Same Store:

Revenue

   Customer Pay

$               134,642

$               131,126

$         3,516

2.7%

   Warranty

44,571

40,632

3,939

9.7%

   Wholesale Parts

42,695

37,720

4,975

13.2%

   Internal, Sublet & Other

82,898

77,833

5,065

6.5%

      Total                           

$               304,806

$               287,311

$       17,495

6.1%

Gross profit

   Customer Pay

$                 73,885

$                 71,939

$         1,946

2.7%

   Warranty

23,918

21,225

2,693

12.7%

   Wholesale Parts

7,717

7,249

468

6.5%

   Internal, Sublet & Other

41,037

39,836

1,201

3.0%

      Total                           

$               146,557

$               140,249

$         6,308

4.5%

Gross profit as a % of revenue

   Customer Pay

54.9%

54.9%

0

bps

   Warranty

53.7%

52.2%

150

bps

   Wholesale Parts

18.1%

19.2%

(110)

bps

   Internal, Sublet & Other

49.5%

51.2%

(170)

bps

      Total                           

48.1%

48.8%

(70)

bps

Nine Months Ended September 30,

Better / (Worse)

2013

2012

 Change

% Change

Same Store:

Revenue

   Customer Pay

$               404,788

$               395,080

$         9,708

2.5%

   Warranty

136,655

126,343

10,312

8.2%

   Wholesale Parts

124,216

115,545

8,671

7.5%

   Internal, Sublet & Other

242,836

238,238

4,598

1.9%

      Total                           

$               908,495

$               875,206

$       33,289

3.8%

Gross profit

   Customer Pay

$               223,166

$               217,840

$         5,326

2.4%

   Warranty

74,511

66,315

8,196

12.4%

   Wholesale Parts

22,995

22,250

745

3.3%

   Internal, Sublet & Other

121,261

120,986

275

0.2%

      Total                           

$               441,933

$               427,391

$       14,542

3.4%

Gross profit as a % of revenue

   Customer Pay

55.1%

55.1%

0

bps

   Warranty

54.5%

52.5%

200

bps

   Wholesale Parts

18.5%

19.3%

(80)

bps

   Internal, Sublet & Other

49.9%

50.8%

(90)

bps

      Total                           

48.6%

48.8%

(20)

bps

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)

(In thousands, except per unit data)

Finance, Insurance and Other ("F&I")

Third Quarter Ended September 30,

Better / (Worse)

2013

2012

Change

% Change

Reported:

Revenue                                          

$                 68,747

$                 64,390

$         4,357

6.8%

Gross profit per retail unit (excludes fleet)

$                   1,114

$                   1,075

$              39

3.6%

Nine Months Ended September 30,

Better / (Worse)

2013

2012

Change

% Change

Reported:

Revenue                                          

$               203,461

$               185,737

$       17,724

9.5%

Gross profit per retail unit (excludes fleet)

$                   1,136

$                   1,071

$              65

6.1%

Third Quarter Ended September 30,

Better / (Worse)

2013

2012

Change

% Change

Same Store:

Revenue                                          

$                 68,267

$                 64,240

$         4,027

6.3%

Gross profit per retail unit (excluding fleet)

$                   1,113

$                   1,073

$              40

3.7%

Nine Months Ended September 30,

Better / (Worse)

2013

2012

Change

% Change

Same Store:

Revenue                                          

$               202,996

$               185,081

$       17,915

9.7%

Gross profit per retail unit (excluding fleet)

$                   1,136

$                   1,067

$              69

6.5%

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)

(In thousands)

Selling, General and Administrative ("SG&A") Expenses

Third Quarter Ended September 30,

Better / (Worse)

2013

2012

 Change

% Change

   Compensation

$               151,683

$               140,771

$     (10,912)

(7.8%)

   Advertising

14,132

12,498

(1,634)

(13.1%)

   Rent 

18,901

18,619

(282)

(1.5%)

   Other

69,848

63,440

(6,408)

(10.1%)

      Total

$               254,564

$               235,328

$     (19,236)

(8.2%)

SG&A as a % of gross profit

Compensation

46.5%

46.2%

(30)

bps

Advertising

4.3%

4.1%

(20)

bps

Rent 

5.8%

6.1%

30

bps

Other

21.5%

20.9%

(60)

bps

Total

78.1%

77.3%

(80)

bps

Nine Months Ended September 30,

Better / (Worse)

2013

2012

 Change

% Change

   Compensation

$               449,791

$               426,463

$     (23,328)

(5.5%)

   Advertising

41,282

37,107

(4,175)

(11.3%)

   Rent

56,344

57,198

854

1.5%

   Other

201,062

191,460

(9,602)

(5.0%)

      Total

$               748,479

$               712,228

$     (36,251)

(5.1%)

SG&A as a % of gross profit

   Compensation

46.7%

46.3%

(40)

bps

   Advertising

4.3%

4.0%

(30)

   Rent

5.9%

6.2%

30

bps

   Other

20.8%

20.8%

(0)

bps

      Total

77.7%

77.3%

(40)

bps

 

 

SOURCE Sonic Automotive, Inc.



RELATED LINKS

http://www.sonicautomotive.com