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

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

More by this Source

Best of Content We Love 2014 


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.