Sonic Automotive, Inc. Reports Record Earnings
Q3 2015 Diluted Continuing Operations Earnings per Share of $0.53
CHARLOTTE, N.C., Oct. 28, 2015 /PRNewswire/ --
Third Quarter 2015 Results
- Record third quarter net income from continuing operations of $27.1 million, up $3.1 million, or 12.7% from the prior year period quarterly adjusted amount of $24.0 million
- All-time record quarterly new retail sales of 36,891 units, up 1.6% over the prior year quarter
- All-time record quarterly pre-owned retail sales of 30,467 units, up 10.6% over the prior year quarter – retailed 100 pre-owned units per store per month in the quarter
- All-time record quarterly pre-owned gross profit of $41.7 million, up 1.2% over the prior year quarter
- Record third quarter fixed operations gross profit of $169.7 million, up 9.3% over the prior year quarter
- All-time quarterly total gross profit of $360.3 million, up 5.5% over the prior year quarter
- Echo Park® stores retail 920 units, up 4.4% from the prior quarter
Sonic Automotive, Inc. (NYSE: SAH), one of the nation's largest automotive retailers, today reported net income from continuing operations for the third quarter of 2015 of $27.1 million, or $0.53 per diluted share. Included in these amounts are pre-tax expenses of $3.7 million, or $0.04 per diluted share, related to EchoPark® operations.
Adjusted net income from continuing operations for the third quarter of 2014 was $24.0 million, or $0.46 per diluted share. Included in these adjusted amounts are pre-tax expenses of $3.6 million, or $0.04 per diluted share, related to EchoPark® operations. On a GAAP basis, net income from continuing operations and related diluted earnings per share for the third quarter of 2014 were $24.6 million and $0.47 per share, respectively. See the accompanying tables for a reconciliation of the adjusted balances to GAAP basis amounts and further details of the quarterly adjustments.
B. Scott Smith, Sonic's Chief Executive Officer, noted, "The overall increase in retail activity and our dedication to provide our customers with an outstanding buying and servicing experience contributed to record results during the quarter. The automotive retail environment continues to expand and present us with opportunities to strengthen and grow our business."
"We are extremely excited about the development of our EchoPark® brand. Our EchoPark® stores continue to grow and we expect two additional stores to open in the Denver market in the first half of 2016. We are in the process of acquiring property in two additional markets as we look to accelerate the EchoPark rollout in the latter part of 2016 and early 2017."
"During the quarter, our One Sonic-One Experience ("OSOE") stores experienced year-over-year net new vehicle market share gains. Our customers love the speed and ease offered by this buying experience. We have been mystery shopped by various parties over the last year and have received rave reviews, notably, a July 20, 2015 review by Matt Jones, Senior Editor for Edmunds.com entitled, "Mystery Shopping Sonic Automotive's New Sales Process." We believe customers will come to the same conclusion Mr. Jones came to in the article… that we are onto something."
Jeff Dyke, Sonic's EVP of Operations, stated, "We continue to make progress on all fronts of our business. Our core business is performing well and steps that we have taken to increase inventory levels in pre-owned and our technician count are beginning to payoff. We are gaining share across all brands in our One Sonic-One Experience stores in Charlotte and should be ready to begin phase I of our technology rollout in the first quarter of 2016. We also continue to make excellent progress at our EchoPark stores and are right on our forecast. This is a very exciting time for our team that has worked countless hours to bring us to this point as we look forward to offering our guests an experience they simply cannot get anywhere else in the industry."
Third Quarter 2015 Earnings Conference Call
Senior management will host a conference call today at 10:00 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: 30271525
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: 30271525
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 future success and impacts from the implementation of our planned customer experience and stand-alone pre-owned store 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, 2014. The Company does not undertake any obligation to update forward-looking information.
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Sonic Automotive, Inc. | ||||||||||
|
Results of Operations (Unaudited) | ||||||||||
|
This release contains certain non-GAAP financial measures 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 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, |
|||||||||
|
2015 |
2014 |
2015 |
2014 |
|||||||
|
(In thousands, except per share and unit data) | ||||||||||
|
Revenues: |
||||||||||
|
New retail vehicles |
$ 1,352,180 |
$ 1,312,592 |
$ 3,828,027 |
$ 3,708,114 |
||||||
|
Fleet vehicles |
15,849 |
15,245 |
37,612 |
65,120 |
||||||
|
Total new vehicles |
1,368,029 |
1,327,837 |
3,865,639 |
3,773,234 |
||||||
|
Used vehicles |
652,058 |
583,570 |
1,904,594 |
1,747,254 |
||||||
|
Wholesale vehicles |
37,971 |
41,433 |
120,760 |
127,797 |
||||||
|
Total vehicles |
2,058,058 |
1,952,840 |
5,890,993 |
5,648,285 |
||||||
|
Parts, service and collision repair |
350,520 |
325,740 |
1,019,878 |
973,646 |
||||||
|
Finance, insurance and other, net |
85,830 |
77,024 |
242,792 |
223,340 |
||||||
|
Total revenues |
2,494,408 |
2,355,604 |
7,153,663 |
6,845,271 |
||||||
|
Gross profit |
360,251 |
341,489 |
1,050,764 |
1,017,436 |
||||||
|
Selling, general and administrative expenses |
(280,041) |
(270,144) |
(835,564) |
(803,031) |
||||||
|
Impairment charges |
(37) |
(208) |
(16,698) |
(215) |
||||||
|
Depreciation and amortization |
(17,250) |
(14,235) |
(50,953) |
(43,047) |
||||||
|
Operating income (loss) |
62,923 |
56,902 |
147,549 |
171,143 |
||||||
|
Other income (expense): |
||||||||||
|
Interest expense, floor plan |
(5,364) |
(4,406) |
(15,488) |
(13,941) |
||||||
|
Interest expense, other, net |
(12,361) |
(12,893) |
(38,635) |
(40,576) |
||||||
|
Other income (expense), net |
- |
(1) |
102 |
98 |
||||||
|
Total other income (expense) |
(17,725) |
(17,300) |
(54,021) |
(54,419) |
||||||
|
Income (loss) from continuing operations before taxes |
45,198 |
39,602 |
93,528 |
116,724 |
||||||
|
Provision for income taxes for continuing operations- benefit (expense) |
(18,095) |
(15,045) |
(36,944) |
(45,122) |
||||||
|
Income (loss) from continuing operations |
27,103 |
24,557 |
56,584 |
71,602 |
||||||
|
Income (loss) from discontinued operations |
(598) |
155 |
(1,331) |
(511) |
||||||
|
Net income (loss) |
$ 26,505 |
$ 24,712 |
$ 55,253 |
$ 71,091 |
||||||
|
Diluted earnings (loss) per common share: |
||||||||||
|
Earnings (loss) per share from continuing operations |
$ 0.53 |
$ 0.47 |
$ 1.11 |
$ 1.35 |
||||||
|
Earnings (loss) per share from discontinued operations |
(0.01) |
- |
(0.03) |
(0.01) |
||||||
|
Earnings (loss) per common share |
$ 0.52 |
$ 0.47 |
$ 1.08 |
$ 1.34 |
||||||
|
Weighted average common shares outstanding |
50,769 |
52,553 |
51,086 |
52,808 |
||||||
|
Gross Margin Data (Continuing Operations): |
||||||||||
|
New retail vehicles |
4.8% |
5.3% |
5.1% |
5.6% |
||||||
|
Fleet vehicles |
(0.8%) |
0.6% |
(0.5%) |
2.1% |
||||||
|
Total new vehicles |
4.8% |
5.2% |
5.0% |
5.6% |
||||||
|
Used vehicles |
6.4% |
7.1% |
6.5% |
6.8% |
||||||
|
Wholesale vehicles |
(6.5%) |
(2.6%) |
(4.4%) |
(2.0%) |
||||||
|
Parts, service and collision repair |
48.4% |
47.7% |
48.7% |
48.0% |
||||||
|
Finance, insurance and other |
100.0% |
100.0% |
100.0% |
100.0% |
||||||
|
Overall gross margin |
14.4% |
14.5% |
14.7% |
14.9% |
||||||
|
SG&A Expenses (Continuing Operations): |
||||||||||
|
Compensation |
$ 167,489 |
$ 163,230 |
$ 497,158 |
$ 483,493 |
||||||
|
Advertising |
15,470 |
14,045 |
46,160 |
42,027 |
||||||
|
Rent |
18,558 |
18,145 |
55,058 |
55,324 |
||||||
|
Other |
78,524 |
74,724 |
237,188 |
222,187 |
||||||
|
Total SG&A expenses |
$ 280,041 |
$ 270,144 |
$ 835,564 |
$ 803,031 |
||||||
|
SG&A expenses as % of gross profit |
77.7% |
79.1% |
79.5% |
78.9% |
||||||
|
Operating Margin % |
2.5% |
2.4% |
2.1% |
2.5% |
||||||
|
Unit Data (Continuing Operations): |
||||||||||
|
New retail units |
36,891 |
36,301 |
102,901 |
101,177 |
||||||
|
Fleet units |
602 |
473 |
1,244 |
2,133 |
||||||
|
Total new units |
37,493 |
36,774 |
104,145 |
103,310 |
||||||
|
Used units |
30,467 |
27,536 |
88,903 |
83,707 |
||||||
|
Wholesale units |
7,787 |
7,916 |
23,574 |
23,034 |
||||||
|
Sonic Automotive, Inc. | |||||||||||||||
|
Results of Operations (Unaudited) | |||||||||||||||
|
Per Share Data |
|||||||||||||||
|
Three Months Ended September 30, 2015 | |||||||||||||||
|
Income (Loss) |
Income (Loss) |
||||||||||||||
|
From Continuing |
From Discontinued |
||||||||||||||
|
Operations |
Average |
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 |
|||||||||||||||
|
and stock units |
(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 (1) |
50,769 |
$ 27,090 |
$ 0.53 |
$ (598) |
$ (0.01) |
$ 26,492 |
$ 0.52 | ||||||||
|
(1) Expenses attributable to EchoPark® operations were $0.04 per fully diluted share in the three months ended September 30, 2015. |
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|
Three Months Ended September 30, 2014 | |||||||||||||||
|
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 |
52,070 |
$ 24,557 |
$ 155 |
$ 24,712 |
|||||||||||
|
Effect of participating securities: |
|||||||||||||||
|
Non-vested restricted stock |
|||||||||||||||
|
and stock units |
(79) |
- |
(79) |
||||||||||||
|
Basic earnings (loss) and shares |
52,070 |
$ 24,478 |
$ 0.47 |
$ 155 |
$ - |
$ 24,633 |
$ 0.47 | ||||||||
|
Effect of dilutive securities: |
|||||||||||||||
|
Stock compensation plans |
483 |
||||||||||||||
|
Diluted earnings (loss) and shares |
52,553 |
$ 24,478 |
$ 0.47 |
$ 155 |
$ - |
$ 24,633 |
$ 0.47 | ||||||||
|
Adjustments (net of tax): |
|||||||||||||||
|
Gain on disposal |
$ (1,953) |
$ (0.04) |
$ - |
$ - |
$ (1,953) |
$ (0.04) | |||||||||
|
Impairment charges |
126 |
- |
- |
- |
126 |
- | |||||||||
|
Storm damage and other |
1,317 |
0.03 |
- |
- |
1,317 |
0.03 | |||||||||
|
Lease exit adjustments |
- |
- |
(845) |
(0.02) |
(845) |
(0.02) | |||||||||
|
Total adjustments |
$ (510) |
$ (0.01) |
$ (845) |
$ (0.02) |
$ (1,355) |
$ (0.03) | |||||||||
|
Adjusted: |
|||||||||||||||
|
Earnings (loss) and |
|||||||||||||||
|
Diluted earnings (loss) per share (2) |
$ 24,047 |
$ 0.46 |
$ (690) |
$ (0.02) |
$ 23,357 |
$ 0.44 | |||||||||
|
(2) Expenses attributable to EchoPark® operations were $0.04 per fully diluted share in the three months ended September 30, 2014. |
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|
Sonic Automotive, Inc. | |||||||||||||||
|
Results of Operations (Unaudited) | |||||||||||||||
|
Per Share Data |
|||||||||||||||
|
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 |
|||||||||||||||
|
and stock units |
(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 (net of tax): |
|||||||||||||||
|
Gain on disposal |
$ (583) |
$ (0.01) |
$ - |
$ - |
$ (583) |
$ (0.01) | |||||||||
|
Impairment charges |
10,166 |
0.20 |
- |
- |
10,166 |
0.20 | |||||||||
|
Storm damage and other |
3,132 |
0.06 |
- |
- |
3,132 |
0.06 | |||||||||
|
Total adjustments |
$ 12,715 |
$ 0.25 |
$ - |
$ - |
$ 12,715 |
$ 0.25 | |||||||||
|
Adjusted: |
|||||||||||||||
|
Earnings (loss) and |
|||||||||||||||
|
Diluted earnings (loss) per share (3) |
$ 69,299 |
$ 1.36 |
$ (1,331) |
$ (0.03) |
$ 67,968 |
$ 1.33 | |||||||||
|
(3) Expenses attributable to EchoPark® operations were $0.15 per fully diluted share in the nine months ended September 30, 2015. |
|||||||||||||||
|
Nine Months Ended September 30, 2014 | |||||||||||||||
|
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 |
52,333 |
$ 71,602 |
$ (511) |
$ 71,091 |
|||||||||||
|
Effect of participating securities: |
|||||||||||||||
|
Non-vested restricted stock |
|||||||||||||||
|
and stock units |
(229) |
- |
(229) |
||||||||||||
|
Basic earnings (loss) and shares |
52,333 |
$ 71,373 |
$ 1.36 |
$ (511) |
$ (0.01) |
$ 70,862 |
$ 1.35 | ||||||||
|
Effect of dilutive securities: |
|||||||||||||||
|
Stock compensation plans |
475 |
||||||||||||||
|
Diluted earnings (loss) and shares |
52,808 |
$ 71,373 |
$ 1.35 |
$ (511) |
$ (0.01) |
$ 70,862 |
$ 1.34 | ||||||||
|
Adjustments (net of tax): |
|||||||||||||||
|
Gain on disposal |
$ (6,400) |
$ (0.12) |
$ - |
$ - |
$ (6,400) |
$ (0.12) | |||||||||
|
Impairment charges |
126 |
- |
- |
- |
126 |
- | |||||||||
|
Storm damage and other |
2,158 |
0.04 |
- |
- |
2,158 |
0.04 | |||||||||
|
Lease exit adjustments |
- |
- |
(845) |
(0.01) |
(845) |
(0.01) | |||||||||
|
Total adjustments |
$ (4,116) |
$ (0.08) |
$ (845) |
$ (0.01) |
$ (4,961) |
$ (0.09) | |||||||||
|
Adjusted: |
|||||||||||||||
|
Earnings (loss) and |
|||||||||||||||
|
Diluted earnings (loss) per share (4) |
$ 67,486 |
$ 1.27 |
$ (1,356) |
$ (0.02) |
$ 66,130 |
$ 1.25 | |||||||||
|
(4) Expenses attributable to EchoPark® operations were $0.10 per fully diluted share in the nine months ended September 30, 2014. |
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|
Sonic Automotive, Inc. | ||||||||||
|
Results of Operations (Unaudited) | ||||||||||
|
New Vehicles |
||||||||||
|
Three Months Ended September 30, |
Better / (Worse) |
|||||||||
|
2015 |
2014 |
Change |
% Change |
|||||||
|
(In thousands, except units and per unit data) |
||||||||||
|
Reported: |
||||||||||
|
Revenue |
$ 1,368,029 |
$ 1,327,837 |
$ 40,192 |
3.0% |
||||||
|
Gross profit |
$ 65,435 |
$ 69,026 |
$ (3,591) |
(5.2%) |
||||||
|
Unit sales |
37,493 |
36,774 |
719 |
2.0% |
||||||
|
Revenue per unit |
$ 36,488 |
$ 36,108 |
$ 380 |
1.1% |
||||||
|
Gross profit per unit |
$ 1,745 |
$ 1,877 |
$ (132) |
(7.0%) |
||||||
|
Gross profit as a % of revenue |
4.8% |
5.2% |
(40) |
bps |
||||||
|
Nine Months Ended September 30, |
Better / (Worse) |
|||||||||
|
2015 |
2014 |
Change |
% Change |
|||||||
|
(In thousands, except units and per unit data) |
||||||||||
|
Reported: |
||||||||||
|
Revenue |
$ 3,865,639 |
$ 3,773,234 |
$ 92,405 |
2.4% |
||||||
|
Gross profit |
$ 193,720 |
$ 209,892 |
$ (16,172) |
(7.7%) |
||||||
|
Unit sales |
104,145 |
103,310 |
835 |
0.8% |
||||||
|
Revenue per unit |
$ 37,118 |
$ 36,523 |
$ 595 |
1.6% |
||||||
|
Gross profit per unit |
$ 1,860 |
$ 2,032 |
$ (172) |
(8.5%) |
||||||
|
Gross profit as a % of revenue |
5.0% |
5.6% |
(60) |
bps |
||||||
|
Three Months Ended September 30, |
Better / (Worse) |
|||||||||
|
2015 |
2014 |
Change |
% Change |
|||||||
|
(In thousands, except units and per unit data) |
||||||||||
|
Same Store: |
||||||||||
|
Revenue |
$ 1,357,281 |
$ 1,307,800 |
$ 49,481 |
3.8% |
||||||
|
Gross profit |
$ 64,860 |
$ 67,826 |
$ (2,966) |
(4.4%) |
||||||
|
Unit sales |
37,147 |
36,143 |
1,004 |
2.8% |
||||||
|
Revenue per unit |
$ 36,538 |
$ 36,184 |
$ 354 |
1.0% |
||||||
|
Gross profit per unit |
$ 1,746 |
$ 1,877 |
$ (131) |
(7.0%) |
||||||
|
Gross profit as a % of revenue |
4.8% |
5.2% |
(40) |
bps |
||||||
|
Nine Months Ended September 30, |
Better / (Worse) |
|||||||||
|
2015 |
2014 |
Change |
% Change |
|||||||
|
(In thousands, except units and per unit data) |
||||||||||
|
Same Store: |
||||||||||
|
Revenue |
$ 3,830,202 |
$ 3,670,736 |
$ 159,466 |
4.3% |
||||||
|
Gross profit |
$ 192,086 |
$ 204,223 |
$ (12,137) |
(5.9%) |
||||||
|
Unit sales |
103,058 |
100,350 |
2,708 |
2.7% |
||||||
|
Revenue per unit |
$ 37,165 |
$ 36,579 |
$ 586 |
1.6% |
||||||
|
Gross profit per unit |
$ 1,864 |
$ 2,035 |
$ (171) |
(8.4%) |
||||||
|
Gross profit as a % of revenue |
5.0% |
5.6% |
(60) |
bps |
||||||
|
Sonic Automotive, Inc. | ||||||||||
|
Results of Operations (Unaudited) | ||||||||||
|
Used Vehicles |
||||||||||
|
Three Months Ended September 30, |
Better / (Worse) |
|||||||||
|
2015 |
2014 |
Change |
% Change |
|||||||
|
(In thousands, except units and per unit data) |
||||||||||
|
Reported: |
||||||||||
|
Revenue |
$ 652,058 |
$ 583,570 |
$ 68,488 |
11.7% |
||||||
|
Gross profit |
$ 41,730 |
$ 41,245 |
$ 485 |
1.2% |
||||||
|
Unit sales |
30,467 |
27,536 |
2,931 |
10.6% |
||||||
|
Revenue per unit |
$ 21,402 |
$ 21,193 |
$ 209 |
1.0% |
||||||
|
Gross profit per unit |
$ 1,370 |
$ 1,498 |
$ (128) |
(8.5%) |
||||||
|
Gross profit as a % of revenue |
6.4% |
7.1% |
(70) |
bps |
||||||
|
Nine Months Ended September 30, |
Better / (Worse) |
|||||||||
|
2015 |
2014 |
Change |
% Change |
|||||||
|
(In thousands, except units and per unit data) |
||||||||||
|
Reported: |
||||||||||
|
Revenue |
$ 1,904,594 |
$ 1,747,254 |
$ 157,340 |
9.0% |
||||||
|
Gross profit |
$ 123,271 |
$ 119,412 |
$ 3,859 |
3.2% |
||||||
|
Unit sales |
88,903 |
83,707 |
5,196 |
6.2% |
||||||
|
Revenue per unit |
$ 21,423 |
$ 20,873 |
$ 550 |
2.6% |
||||||
|
Gross profit per unit |
$ 1,387 |
$ 1,427 |
$ (40) |
(2.8%) |
||||||
|
Gross profit as a % of revenue |
6.5% |
6.8% |
(30) |
bps |
||||||
|
Three Months Ended September 30, |
Better / (Worse) |
|||||||||
|
2015 |
2014 |
Change |
% Change |
|||||||
|
(In thousands, except units and per unit data) |
||||||||||
|
Same Store: |
||||||||||
|
Revenue |
$ 625,760 |
$ 571,295 |
$ 54,465 |
9.5% |
||||||
|
Gross profit |
$ 40,288 |
$ 40,816 |
$ (528) |
(1.3%) |
||||||
|
Unit sales |
29,173 |
26,902 |
2,271 |
8.4% |
||||||
|
Revenue per unit |
$ 21,450 |
$ 21,236 |
$ 214 |
1.0% |
||||||
|
Gross profit per unit |
$ 1,381 |
$ 1,517 |
$ (136) |
(9.0%) |
||||||
|
Gross profit as a % of revenue |
6.4% |
7.1% |
(70) |
bps |
||||||
|
Nine Months Ended September 30, |
Better / (Worse) |
|||||||||
|
2015 |
2014 |
Change |
% Change |
|||||||
|
(In thousands, except units and per unit data) |
||||||||||
|
Same Store: |
||||||||||
|
Revenue |
$ 1,831,379 |
$ 1,689,958 |
$ 141,421 |
8.4% |
||||||
|
Gross profit |
$ 119,184 |
$ 116,749 |
$ 2,435 |
2.1% |
||||||
|
Unit sales |
85,225 |
80,900 |
4,325 |
5.3% |
||||||
|
Revenue per unit |
$ 21,489 |
$ 20,889 |
$ 600 |
2.9% |
||||||
|
Gross profit per unit |
$ 1,398 |
$ 1,443 |
$ (45) |
(3.1%) |
||||||
|
Gross profit as a % of revenue |
6.5% |
6.9% |
(40) |
bps |
||||||
|
Sonic Automotive, Inc. | ||||||||||
|
Results of Operations (Unaudited) | ||||||||||
|
Wholesale Vehicles |
||||||||||
|
Three Months Ended September 30, |
Better / (Worse) |
|||||||||
|
2015 |
2014 |
Change |
% Change |
|||||||
|
(In thousands, except units and per unit data) |
||||||||||
|
Reported: |
||||||||||
|
Revenue |
$ 37,971 |
$ 41,433 |
$ (3,462) |
(8.4%) |
||||||
|
Gross profit (loss) |
$ (2,481) |
$ (1,086) |
$ (1,395) |
(128.5%) |
||||||
|
Unit sales |
7,787 |
7,916 |
(129) |
(1.6%) |
||||||
|
Revenue per unit |
$ 4,876 |
$ 5,234 |
$ (358) |
(6.8%) |
||||||
|
Gross profit (loss) per unit |
$ (319) |
$ (137) |
$ (182) |
(132.8%) |
||||||
|
Gross profit (loss) as a % of revenue |
(6.5%) |
(2.6%) |
(390) |
bps |
||||||
|
Nine Months Ended September 30, |
Better / (Worse) |
|||||||||
|
2015 |
2014 |
Change |
% Change |
|||||||
|
(In thousands, except units and per unit data) |
||||||||||
|
Reported: |
||||||||||
|
Revenue |
$ 120,760 |
$ 127,797 |
$ (7,037) |
(5.5%) |
||||||
|
Gross profit (loss) |
$ (5,366) |
$ (2,493) |
$ (2,873) |
(115.2%) |
||||||
|
Unit sales |
23,574 |
23,034 |
540 |
2.3% |
||||||
|
Revenue per unit |
$ 5,123 |
$ 5,548 |
$ (425) |
(7.7%) |
||||||
|
Gross profit (loss) per unit |
$ (228) |
$ (108) |
$ (120) |
(111.1%) |
||||||
|
Gross profit (loss) as a % of revenue |
(4.4%) |
(2.0%) |
(240) |
bps |
||||||
|
Three Months Ended September 30, |
Better / (Worse) |
|||||||||
|
2015 |
2014 |
Change |
% Change |
|||||||
|
(In thousands, except units and per unit data) |
||||||||||
|
Same Store: |
||||||||||
|
Revenue |
$ 36,803 |
$ 40,338 |
$ (3,535) |
(8.8%) |
||||||
|
Gross profit (loss) |
$ (2,445) |
$ (1,065) |
$ (1,380) |
(129.6%) |
||||||
|
Unit sales |
7,463 |
7,750 |
(287) |
(3.7%) |
||||||
|
Revenue per unit |
$ 4,931 |
$ 5,205 |
$ (274) |
(5.3%) |
||||||
|
Gross profit (loss) per unit |
$ (328) |
$ (137) |
$ (191) |
(139.4%) |
||||||
|
Gross profit (loss) as a % of revenue |
(6.6%) |
(2.6%) |
(400) |
bps |
||||||
|
Nine Months Ended September 30, |
Better / (Worse) |
|||||||||
|
2015 |
2014 |
Change |
% Change |
|||||||
|
(In thousands, except units and per unit data) |
||||||||||
|
Same Store: |
||||||||||
|
Revenue |
$ 117,037 |
$ 123,910 |
$ (6,873) |
(5.5%) |
||||||
|
Gross profit (loss) |
$ (4,969) |
$ (2,396) |
$ (2,573) |
(107.4%) |
||||||
|
Unit sales |
22,622 |
22,371 |
251 |
1.1% |
||||||
|
Revenue per unit |
$ 5,174 |
$ 5,539 |
$ (365) |
(6.6%) |
||||||
|
Gross profit (loss) per unit |
$ (220) |
$ (107) |
$ (113) |
(105.6%) |
||||||
|
Gross profit (loss) as a % of revenue |
(4.2%) |
(1.9%) |
(230) |
bps |
||||||
|
Sonic Automotive, Inc. | ||||||||||
|
Results of Operations (Unaudited) | ||||||||||
|
Parts, Service and Collision Repair ("Fixed Operations") |
||||||||||
|
Three Months Ended September 30, |
Better / (Worse) |
|||||||||
|
2015 |
2014 |
Change |
% Change |
|||||||
|
Reported: |
(In thousands) |
|||||||||
|
Revenue |
||||||||||
|
Customer pay |
$ 147,308 |
$ 141,458 |
$ 5,850 |
4.1% |
||||||
|
Warranty |
58,522 |
48,431 |
10,091 |
20.8% |
||||||
|
Wholesale parts |
45,832 |
46,983 |
(1,151) |
(2.4%) |
||||||
|
Internal, sublet and other |
98,858 |
88,868 |
9,990 |
11.2% |
||||||
|
Total |
$ 350,520 |
$ 325,740 |
$ 24,780 |
7.6% |
||||||
|
Gross profit |
||||||||||
|
Customer pay |
$ 80,588 |
$ 77,546 |
$ 3,042 |
3.9% |
||||||
|
Warranty |
32,337 |
26,254 |
6,083 |
23.2% |
||||||
|
Wholesale parts |
8,045 |
8,122 |
(77) |
(0.9%) |
||||||
|
Internal, sublet and other |
48,767 |
43,358 |
5,409 |
12.5% |
||||||
|
Total |
$ 169,737 |
$ 155,280 |
$ 14,457 |
9.3% |
||||||
|
Gross profit as a % of revenue |
||||||||||
|
Customer pay |
54.7% |
54.8% |
(10) |
bps |
||||||
|
Warranty |
55.3% |
54.2% |
110 |
bps |
||||||
|
Wholesale parts |
17.6% |
17.3% |
30 |
bps |
||||||
|
Internal, sublet and other |
49.3% |
48.8% |
50 |
bps |
||||||
|
Total |
48.4% |
47.7% |
70 |
bps |
||||||
|
Nine Months Ended September 30, |
Better / (Worse) |
|||||||||
|
2015 |
2014 |
Change |
% Change |
|||||||
|
Reported: |
(In thousands) |
|||||||||
|
Revenue |
||||||||||
|
Customer pay |
$ 431,479 |
$ 427,620 |
$ 3,859 |
0.9% |
||||||
|
Warranty |
169,170 |
142,072 |
27,098 |
19.1% |
||||||
|
Wholesale parts |
136,693 |
142,071 |
(5,378) |
(3.8%) |
||||||
|
Internal, sublet and other |
282,536 |
261,883 |
20,653 |
7.9% |
||||||
|
Total |
$ 1,019,878 |
$ 973,646 |
$ 46,232 |
4.7% |
||||||
|
Gross profit |
||||||||||
|
Customer pay |
$ 236,551 |
$ 235,151 |
$ 1,400 |
0.6% |
||||||
|
Warranty |
94,776 |
77,163 |
17,613 |
22.8% |
||||||
|
Wholesale parts |
24,332 |
24,590 |
(258) |
(1.0%) |
||||||
|
Internal, sublet and other |
140,688 |
130,381 |
10,307 |
7.9% |
||||||
|
Total |
$ 496,347 |
$ 467,285 |
$ 29,062 |
6.2% |
||||||
|
Gross profit as a % of revenue |
||||||||||
|
Customer pay |
54.8% |
55.0% |
(20) |
bps |
||||||
|
Warranty |
56.0% |
54.3% |
170 |
bps |
||||||
|
Wholesale parts |
17.8% |
17.3% |
50 |
bps |
||||||
|
Internal, sublet and other |
49.8% |
49.8% |
0 |
bps |
||||||
|
Total |
48.7% |
48.0% |
70 |
bps |
||||||
|
Sonic Automotive, Inc. | ||||||||||
|
Results of Operations (Unaudited) | ||||||||||
|
Parts, Service and Collision Repair ("Fixed Operations") |
||||||||||
|
Three Months Ended September 30, |
Better / (Worse) |
|||||||||
|
2015 |
2014 |
Change |
% Change |
|||||||
|
Same Store: |
(In thousands) |
|||||||||
|
Revenue |
||||||||||
|
Customer pay |
$ 146,360 |
$ 139,186 |
$ 7,174 |
5.2% |
||||||
|
Warranty |
58,128 |
47,460 |
10,668 |
22.5% |
||||||
|
Wholesale parts |
45,561 |
46,041 |
(480) |
(1.0%) |
||||||
|
Internal, sublet and other |
96,460 |
87,261 |
9,199 |
10.5% |
||||||
|
Total |
$ 346,509 |
$ 319,948 |
$ 26,561 |
8.3% |
||||||
|
Gross profit |
||||||||||
|
Customer pay |
$ 80,053 |
$ 76,324 |
$ 3,729 |
4.9% |
||||||
|
Warranty |
32,216 |
25,784 |
6,432 |
24.9% |
||||||
|
Wholesale parts |
7,979 |
7,941 |
38 |
0.5% |
||||||
|
Internal, sublet and other |
47,440 |
42,418 |
5,022 |
11.8% |
||||||
|
Total |
$ 167,688 |
$ 152,467 |
$ 15,221 |
10.0% |
||||||
|
Gross profit as a % of revenue |
||||||||||
|
Customer pay |
54.7% |
54.8% |
(10) |
bps |
||||||
|
Warranty |
55.4% |
54.3% |
110 |
bps |
||||||
|
Wholesale parts |
17.5% |
17.2% |
30 |
bps |
||||||
|
Internal, sublet and other |
49.2% |
48.6% |
60 |
bps |
||||||
|
Total |
48.4% |
47.7% |
70 |
bps |
||||||
|
Nine Months Ended September 30, |
Better / (Worse) |
|||||||||
|
2015 |
2014 |
Change |
% Change |
|||||||
|
Same Store: |
(In thousands) |
|||||||||
|
Revenue |
||||||||||
|
Customer pay |
$ 426,683 |
$ 415,998 |
$ 10,685 |
2.6% |
||||||
|
Warranty |
167,771 |
137,297 |
30,474 |
22.2% |
||||||
|
Wholesale parts |
135,643 |
138,563 |
(2,920) |
(2.1%) |
||||||
|
Internal, sublet and other |
274,892 |
254,753 |
20,139 |
7.9% |
||||||
|
Total |
$ 1,004,989 |
$ 946,611 |
$ 58,378 |
6.2% |
||||||
|
Gross profit |
||||||||||
|
Customer pay |
$ 234,006 |
$ 228,983 |
$ 5,023 |
2.2% |
||||||
|
Warranty |
94,108 |
74,684 |
19,424 |
26.0% |
||||||
|
Wholesale parts |
24,114 |
23,912 |
202 |
0.8% |
||||||
|
Internal, sublet and other |
136,931 |
126,192 |
10,739 |
8.5% |
||||||
|
Total |
$ 489,159 |
$ 453,771 |
$ 35,388 |
7.8% |
||||||
|
Gross profit as a % of revenue |
||||||||||
|
Customer pay |
54.8% |
55.0% |
(20) |
bps |
||||||
|
Warranty |
56.1% |
54.4% |
170 |
bps |
||||||
|
Wholesale parts |
17.8% |
17.3% |
50 |
bps |
||||||
|
Internal, sublet and other |
49.8% |
49.5% |
30 |
bps |
||||||
|
Total |
48.7% |
47.9% |
80 |
bps |
||||||
|
Sonic Automotive, Inc. | ||||||||||
|
Results of Operations (Unaudited) | ||||||||||
|
Finance, Insurance and Other, Net ("F&I") |
||||||||||
|
Three Months Ended September 30, |
Better / (Worse) |
|||||||||
|
2015 |
2014 |
Change |
% Change |
|||||||
|
(In thousands, except per unit data) |
||||||||||
|
Reported: |
||||||||||
|
Revenue |
$ 85,830 |
$ 77,024 |
$ 8,806 |
11.4% |
||||||
|
Gross profit per retail unit (excludes fleet) |
$ 1,274 |
$ 1,207 |
$ 67 |
5.6% |
||||||
|
Nine Months Ended September 30, |
Better / (Worse) |
|||||||||
|
2015 |
2014 |
Change |
% Change |
|||||||
|
(In thousands, except per unit data) |
||||||||||
|
Reported: |
||||||||||
|
Revenue |
$ 242,792 |
$ 223,340 |
$ 19,452 |
8.7% |
||||||
|
Gross profit per retail unit (excludes fleet) |
$ 1,266 |
$ 1,208 |
$ 58 |
4.8% |
||||||
|
Three Months Ended September 30, |
Better / (Worse) |
|||||||||
|
2015 |
2014 |
Change |
% Change |
|||||||
|
(In thousands, except per unit data) |
||||||||||
|
Same Store: |
||||||||||
|
Revenue |
$ 84,052 |
$ 75,797 |
$ 8,255 |
10.9% |
||||||
|
Gross profit per retail unit (excludes fleet) |
$ 1,279 |
$ 1,211 |
$ 68 |
5.6% |
||||||
|
Nine Months Ended September 30, |
Better / (Worse) |
|||||||||
|
2015 |
2014 |
Change |
% Change |
|||||||
|
(In thousands, except per unit data) |
||||||||||
|
Same Store: |
||||||||||
|
Revenue |
$ 237,771 |
$ 217,216 |
$ 20,555 |
9.5% |
||||||
|
Gross profit per retail unit (excludes fleet) |
$ 1,271 |
$ 1,213 |
$ 58 |
4.8% |
||||||
|
Sonic Automotive, Inc. | ||||||||||
|
Results of Operations (Unaudited) | ||||||||||
|
Selling, General and Administrative ("SG&A") Expenses |
||||||||||
|
Three Months Ended September 30, |
Better / (Worse) |
|||||||||
|
2015 |
2014 |
Change |
% Change |
|||||||
|
(In thousands) |
||||||||||
|
Reported: |
||||||||||
|
Compensation |
$ 167,489 |
$ 163,230 |
$ (4,259) |
(2.6%) |
||||||
|
Advertising |
15,470 |
14,045 |
(1,425) |
(10.1%) |
||||||
|
Rent |
18,558 |
18,145 |
(413) |
(2.3%) |
||||||
|
Other |
78,524 |
74,724 |
(3,800) |
(5.1%) |
||||||
|
Total |
$ 280,041 |
$ 270,144 |
$ (9,897) |
(3.7%) |
||||||
|
Total pre-tax adjustments |
- |
1,043 |
||||||||
|
Adjusted SG&A |
$ 280,041 |
$ 271,187 |
||||||||
|
SG&A expenses as a % of gross profit |
||||||||||
|
Compensation |
46.5% |
47.8% |
130 |
bps |
||||||
|
Advertising |
4.3% |
4.1% |
(20) |
bps |
||||||
|
Rent |
5.2% |
5.3% |
10 |
bps |
||||||
|
Other |
21.7% |
21.9% |
20 |
bps |
||||||
|
Total |
77.7% |
79.1% |
140 |
bps |
||||||
|
Total pre-tax adjustments |
0.0% |
0.3% |
||||||||
|
Adjusted SG&A as % of Gross |
77.7% |
79.4% |
||||||||
|
Nine Months Ended September 30, |
Better / (Worse) |
|||||||||
|
2015 |
2014 |
Change |
% Change |
|||||||
|
(In thousands) |
||||||||||
|
Reported: |
||||||||||
|
Compensation |
$ 497,158 |
$ 483,493 |
$ (13,665) |
(2.8%) |
||||||
|
Advertising |
46,160 |
42,027 |
(4,133) |
(9.8%) |
||||||
|
Rent |
55,058 |
55,324 |
266 |
0.5% |
||||||
|
Other |
237,188 |
222,187 |
(15,001) |
(6.8%) |
||||||
|
Total |
$ 835,564 |
$ 803,031 |
$ (32,533) |
(4.1%) |
||||||
|
Total pre-tax adjustments |
(4,183) |
6,955 |
||||||||
|
Adjusted SG&A |
$ 831,381 |
$ 809,986 |
||||||||
|
SG&A expenses as a % of gross profit |
||||||||||
|
Compensation |
47.3% |
47.5% |
20 |
bps |
||||||
|
Advertising |
4.4% |
4.1% |
(30) |
bps |
||||||
|
Rent |
5.2% |
5.4% |
20 |
bps |
||||||
|
Other |
22.6% |
21.9% |
(70) |
bps |
||||||
|
Total |
79.5% |
78.9% |
(60) |
bps |
||||||
|
Total pre-tax adjustments |
(0.4%) |
0.7% |
||||||||
|
Adjusted SG&A as % of Gross |
79.1% |
79.6% |
||||||||
SOURCE Sonic Automotive, Inc.
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