Sonic Automotive, Inc. Reports Record Results

Adjusted Continuing Operations Quarterly EPS of $0.61, Increases Dividend by 33%

Feb 23, 2016, 07:30 ET from Sonic Automotive, Inc.

CHARLOTTE, N.C., Feb. 23, 2016 /PRNewswire/ --

Fourth Quarter 2015 Results

  • Record Q4 new retail units of 35,228, up 1.4% over the prior year quarter
  • Record Q4 pre-owned units and gross profit of 28,220 and $38.8 million, respectively
  • Record Q4 fixed operations gross profit of $169.1 million, up 8.2% over the prior year quarter
  • Record Q4 total gross profit of $363.8 million, up 4.4% over the prior year quarter
  • EchoPark® stores retailed 764 units

Full Year 2015 Results

  • Record annual new retail units of 138,129, up 1.6% over the prior year
  • Record annual pre-owned units of 117,123, up 6.4% over the prior year
  • Record annual pre-owned gross profit of $162.0 million, up 3.1% over the prior year
  • Record annual fixed operations gross profit of $655.4 million
  • Record annual total gross profit of $1.415 billion
  • EchoPark® stores retailed 3,225 units

Sonic Automotive, Inc. (NYSE: SAH), one of the nation's largest automotive retailers, today reported adjusted net income from continuing operations for the fourth quarter of 2015 of $30.9 million, or $0.61 per diluted share.  Included in these adjusted amounts are pre-tax expenses of $3.6 million, or $0.04 per diluted share, related to the Company's EchoPark® operations.  Adjusted net income from continuing operations and related earnings per diluted share are non-GAAP financial measures.  The schedules included in this press release reconcile these non-GAAP financial measures to the comparable GAAP financial measures.

Adjusted net income from continuing operations for the fourth quarter of 2014 was $32.5 million, or $0.63 per diluted share. Included in these adjusted amounts are pre-tax expenses of $7.1 million, or $0.08 per diluted share, related to the Company's EchoPark® operations.

On a GAAP basis, net income from continuing operations and related diluted earnings per share for the fourth quarter of 2015 were $31.5 million and $0.63 per share, respectively, compared to $27.0 million and $0.52 per diluted share, respectively, for the fourth quarter of 2014. 

Sonic reported full year 2015 adjusted net income from continuing operations of $100.2 million, or $1.97 per diluted share, that includes expenses of $16.3 million, or $0.19 per diluted share, related to the Company's EchoPark® operations.  For the full year of 2014, Sonic reported adjusted net income from continuing operations of $100.0 million, or $1.90 per diluted share, that includes expenses of $15.7 million, or $0.18 per diluted share, related to EchoPark®.

On a GAAP basis, net income from continuing operations for the full year of 2015 was $88.1 million, or $1.73 per diluted share, compared to full year 2014 results of $98.6 million, or $1.87 per diluted share.

Jeff Dyke, Sonic's EVP of Operations, stated, "The year ended up being a great year for Sonic and EchoPark®.  I am very proud of our team as we progressed together on our long-term strategy to redefine the Automotive Guest Experience.  This is a huge undertaking that we are confident will reward our Guests, Associates and Long-Term Shareholders.  We have been able to grow gross across all of our revenue streams with the exception of new vehicles, which is a direct reflection of manufacturers' inventory growth in particular in the luxury category.  Some of the OEM's have simply over produced and it has caused competitive and margin pressures that we have not experienced in several years. However, the stability and strength of our pre-owned revenue stream has continued to allow us to drive additional profitability in that area.  In addition, we have overcome the warranty mix issues from earlier in the year and we were able to increase same store fixed operations gross profit 9.6% in the fourth quarter of 2015 compared to the fourth quarter of 2014.  Our focus on increasing customer pay, up 7.8% on a same store basis during the fourth quarter, was key to achieving this level of growth.

We are excited about the growth we are planning for EchoPark® in 2016 and 2017.  Two new stores in the Denver market will open in the first half of 2016 with two more coming in the first part of 2017.  We also have plans in place to add additional stores in at least two different markets beginning in Q4 2016 depending on real-estate closing dates."

Dividend

Sonic's Board of Directors approved a quarterly dividend of $0.05 per share payable in cash for stockholders of record on March 15, 2016.  The dividend will be payable on April 15, 2016.  This represents a 33% increase in the dividend rate from the prior quarter amount of $0.0375 per share.

2016 Outlook

B. Scott Smith, the Company's Chief Executive Officer, noted, "I am very pleased with the performance of our team in the fourth quarter and the year.  Subsequent to December 31, 2015, market news and expectations related to the retail automotive sector created pressure on public company valuations.  As a result, our Board of Directors increased our authorization to repurchase shares by $100.0 million.  During the first quarter of 2016, we repurchased approximately 4.0 million shares, roughly 7.9% of outstanding shares as of December 31, 2015, for approximately $72.0 million.

We expect 2016 to continue to be favorable to dealers and anticipate new vehicle industry volume to be between 17.3 million and 17.6 million units, but expect new vehicle GPU pressure to continue.  We project diluted earnings per share from continuing operations for 2016 to be between $2.07 and $2.17 per share.  This range includes the effect of projected EchoPark® results and expansion.  We are projecting a loss related to EchoPark® of between $0.21 and $0.23 per diluted share.  We will have additional comments on our 2016 outlook in our earnings call later today."

Fourth Quarter Earnings Conference Call

Senior management will host a conference call today at 11:00 A.M. (Eastern) to discuss the quarter's results. To access the live broadcast of the call over the Internet go to: www.sonicautomotive.com, then click on "Our Company," then "Investor Relations," then "Earnings Conference Calls."

Presentation materials for the conference call can be accessed on the Company's website at www.sonicautomotive.com by clicking on the "Investor Relations" tab under "Our Company" and choosing "Webcasts & Presentations."

The conference call will also be available live by dialing in 10 minutes prior to the start of the call at:

Domestic: 1.877.450.3867
International: 1.706.643.0958
Conference ID: 32450261

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: 32450261

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 EchoPark® 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.

 

 

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 December 31,


Twelve Months Ended December 31,



2015


2014


2015


2014



(In thousands, except per share and unit data)

Revenues:









   New retail vehicles


$               1,377,661


$               1,337,896


$          5,205,688


$          5,046,010

   Fleet vehicles


22,101


12,899


59,713


78,019

   Total new vehicles


1,399,762


1,350,795


5,265,401


5,124,029

   Used vehicles . .


607,430


562,993


2,512,024


2,310,247

   Wholesale vehicles


34,579


38,361


155,339


166,158

   Total vehicles .


2,041,771


1,952,149


7,932,764


7,600,434

   Parts, service and collision repair


345,068


322,924


1,364,947


1,296,570

   Finance, insurance and other, net


83,796


76,755


326,588


300,095

   Total revenues


2,470,635


2,351,828


9,624,299


9,197,099

Gross profit


363,848


348,464


1,414,612


1,365,900

Selling, general and administrative expenses 


(275,002)


(264,402)


(1,110,565)


(1,067,433)

Impairment charges


(1,257)


(6,379)


(17,955)


(6,594)

Depreciation and amortization


(17,846)


(15,213)


(68,799)


(58,260)

Operating income (loss)


69,743


62,470


217,293


233,613

Other income (expense):








   Interest expense, floor plan


(5,840)


(4,852)


(21,326)


(18,793)

   Interest expense, other, net


(12,275)


(12,614)


(50,910)


(53,190)

   Other income (expense), net


-


(2)


99


97

   Total other income (expense)


(18,115)


(17,468)


(72,137)


(71,886)

Income (loss) from continuing operations before taxes


51,628


45,002


145,156


161,727

Provision for income taxes for continuing operations - benefit (expense)


(20,121)


(18,045)


(57,065)


(63,168)

Income (loss) from continuing operations 


31,507


26,957


88,091


98,559

Income (loss) from discontinued operations


(449)


(831)


(1,780)


(1,342)

Net income (loss)


$                    31,058


$                    26,126


$               86,311


$               97,217









Diluted earnings (loss) per common share:








Earnings (loss) per share from continuing operations


$                        0.63


$                        0.52


$                   1.73


$                   1.87

Earnings (loss) per share from discontinued operations


(0.01)


$                      (0.02)


(0.03)


(0.03)

Earnings (loss) per common share


$                        0.62


$                        0.50


$                   1.70


$                   1.84

Weighted average common shares outstanding


50,278


51,834


50,883


52,563









Gross Margin Data (Continuing Operations):








   New retail vehicles


5.4%


5.9%


5.2%


5.7%

   Fleet vehicles


0.1%


1.1%


(0.3%)


1.9%

   Total new vehicles


5.3%


5.8%


5.1%


5.6%

   Used vehicles


6.4%


6.7%


6.5%


6.8%

   Wholesale vehicles


(5.8%)


(2.9%)


(4.7%)


(2.2%)

   Parts, service and collision repair


49.0%


48.4%


48.8%


48.1%

   Finance, insurance and other


100.0%


100.0%


100.0%


100.0%

   Overall gross margin


14.7%


14.8%


14.7%


14.9%









SG&A Expenses (Continuing Operations):








   Compensation


$                  169,510


$                  155,382


$             666,668


$             638,875

   Advertising


15,470


15,409


61,630


57,437

   Rent


18,481


18,384


73,539


73,707

   Other


71,541


75,227


308,728


297,414

   Total SG&A expenses


$                  275,002


$                  264,402


$          1,110,565


$          1,067,433

   SG&A expenses as % of gross profit


75.6%


75.9%


78.5%


78.1%









Operating Margin %


2.8%


2.7%


2.3%


2.5%









Unit Data (Continuing Operations):








   New retail units


35,228


34,755


138,129


135,932

   Fleet units


628


352


1,872


2,485

   Total new units


35,856


35,107


140,001


138,417

   Used units


28,220


26,406


117,123


110,113

   Wholesale units


6,594


6,912


30,168


29,946

 

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)


Per Share Data
































Three Months Ended December 31, 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


49,872


$     31,507




$       (449)




$     31,058



   Effect of participating securities:















   Non-vested restricted stock




(13)




-




(13)



   Basic earnings (loss) and shares


49,872


$     31,494


$       0.63


$       (449)


$      (0.01)


$     31,045


$       0.62

   Effect of dilutive securities:















   Stock compensation plans


406













   Diluted earnings (loss) and shares


50,278


$     31,494


$       0.63


$       (449)


$      (0.01)


$     31,045


$       0.62
















Adjustments (net of tax):















   Gain on disposal




$      (1,417)


$      (0.03)


$             -


$           -


$      (1,417)


$      (0.03)

   Impairment charges




766


0.01


-


-


766


0.01

   Total adjustments




$         (651)


$      (0.02)


$             -


$           -


$         (651)


$      (0.02)
















Adjusted:















   Earnings (loss) and















   Diluted earnings (loss) per share (1)




$     30,856


$       0.61


$       (449)


$      (0.01)


$     30,407


$       0.60
















(1) Net loss attributable to EchoPark® operations was $0.04 per fully diluted share in the three months ended December 31, 2015



































Three Months Ended December 31, 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


51,272


$     26,957




$       (831)




$     26,126



   Effect of participating securities:















   Non-vested restricted stock















   and stock units




(86)




-




(86)



   Basic earnings (loss) and shares


51,272


$     26,871


$       0.52


$       (831)


$      (0.01)


$     26,040


$       0.51

   Effect of dilutive securities:















   Stock compensation plans


562













   Diluted earnings (loss) and shares


51,834


$     26,871


$       0.52


$       (831)


$      (0.02)


$     26,040


$       0.50
















Adjustments (net of tax):















   Gain on disposal




$         (157)


$           -


$             -


$           -


$         (157)


$           -

   Impairment charges




3,943


0.08


-


-


3,943


0.08

   Storm damage and other




949


0.01


-


-


949


0.01

   Permanent tax differences from disposals




853


0.02


-


-


853


0.02

   Total adjustments




$       5,588


$       0.11


$             -


$           -


$       5,588


$       0.11
















Adjusted:















   Earnings (loss) and















   Diluted earnings (loss) per share (2)




$     32,545


$       0.63


$       (831)


$      (0.02)


$     31,714


$       0.61
















(2) Net loss attributable to EchoPark® operations was $0.08 per fully diluted share in the three months ended December 31, 2014



 

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)
















Per Share Data
































Twelve Months Ended December 31, 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


50,489


$     88,091




$    (1,780)




$     86,311



   Effect of participating securities:















   Non-vested restricted stock















   and stock units




(36)




-




(36)



   Basic earnings (loss) and shares


50,489


$     88,055


$       1.74


$    (1,780)


$      (0.03)


$     86,275


$       1.71

   Effect of dilutive securities:















   Stock compensation plans


394













   Diluted earnings (loss) and shares


50,883


$     88,055


$       1.73


$    (1,780)


$      (0.03)


$     86,275


$       1.70
















Adjustments (net of tax):















   Gain on disposal




$      (2,000)


$      (0.04)


$             -


$           -


$      (2,000)


$      (0.04)

   Impairment charges




10,930


0.22


-


-


10,930


0.22

   Storm damage and other




3,134


0.06


-


-


3,134


0.06

   Effect of rounding




-


-


-


(0.01)


-


(0.01)

   Total adjustments




$     12,064


$       0.24


$             -


$      (0.01)


$     12,064


$       0.23
















Adjusted:















   Earnings (loss) and 















   Diluted earnings (loss) per share (3)




$   100,155


$       1.97


$    (1,780)


$      (0.04)


$     98,375


$       1.93
















(3) Net loss attributable to EchoPark® operations was $0.19 per fully diluted share in the twelve months ended December 31, 2015.



































Twelve Months Ended December 31, 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


52,065


$     98,559




$    (1,342)




$     97,217



   Effect of participating securities:















   Non-vested restricted stock















   and stock units




(311)




-




(311)



   Basic earnings (loss) and shares


52,065


$     98,248


$       1.89


$    (1,342)


$      (0.03)


$     96,906


$       1.86

   Effect of dilutive securities:















   Stock compensation plans


498













   Diluted earnings (loss) and shares


52,563


$     98,248


$       1.87


$    (1,342)


$      (0.03)


$     96,906


$       1.84
















Adjustments (net of tax):















   Gain on disposal




$      (7,273)


$      (0.14)


$             -


$           -


$      (7,273)


$      (0.14)

   Impairment charges




4,459


0.08


-


-


4,459


0.08

   Storm damage and other




3,434


0.07


-


-


3,434


0.07

   Permanent tax differences from disposals




853


0.02


-


-


853


0.02

   Lease exit adjustments




-


-


(844)


(0.01)


(844)


(0.01)

   Total adjustments




$       1,473


$       0.03


$       (844)


$      (0.01)


$          629


$       0.02
















Adjusted:















   Earnings (loss) and 















   Diluted earnings (loss) per share (4)




$   100,032


$       1.90


$    (2,186)


$      (0.04)


$     97,846


$       1.86
















(4) Net loss attributable to EchoPark® operations was $0.18 per fully diluted share in the twelve months ended December 31, 2014.



 

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)










New Vehicles




















Three Months Ended December 31,


Better / (Worse)



2015


2014


Change


% Change



(In thousands, except units and per unit data)

Reported:








   Revenue


$          1,399,762


$          1,350,795


$               48,967


3.6%

   Gross profit


$               74,209


$               78,734


$               (4,525)


(5.7%)

   Unit sales


35,856


35,107


749


2.1%

   Revenue per unit


$               39,038


$               38,477


$                    561


1.5%

   Gross profit per unit


$                 2,070


$                 2,243


$                  (173)


(7.7%)

   Gross profit as a % of revenue


5.3%


5.8%


(50)

bps












Twelve Months Ended December 31,


Better / (Worse)



2015


2014


Change


% Change



(In thousands, except units and per unit data)

Reported:








   Revenue


$          5,265,401


$          5,124,029


$             141,372


2.8%

   Gross profit


$             267,929


$             288,626


$             (20,697)


(7.2%)

   Unit sales


140,001


138,417


1,584


1.1%

   Revenue per unit


$               37,610


$               37,019


$                    591


1.6%

   Gross profit per unit


$                 1,914


$                 2,085


$                  (171)


(8.2%)

   Gross profit as a % of revenue


5.1%


5.6%


(50)

bps












Three Months Ended December 31,


Better / (Worse)



2015


2014


Change


% Change



(In thousands, except units and per unit data)

Same Store:








   Revenue


$          1,391,427


$          1,333,400


$               58,027


4.4%

   Gross profit


$               74,077


$               78,030


$               (3,953)


(5.1%)

   Unit sales


35,686


34,673


1,013


2.9%

   Revenue per unit


$               38,991


$               38,456


$                    535


1.4%

   Gross profit per unit


$                 2,076


$                 2,250


$                  (174)


(7.7%)

   Gross profit as a % of revenue


5.3%


5.9%


(60)

bps












Twelve Months Ended December 31,


Better / (Worse)



2015


2014


Change


% Change



(In thousands, except units and per unit data)

Same Store:








   Revenue


$          5,187,076


$          4,965,615


$             221,461


4.5%

   Gross profit


$             264,124


$             280,264


$             (16,140)


(5.8%)

   Unit sales


137,884


134,062


3,822


2.9%

   Revenue per unit


$               37,619


$               37,040


$                    579


1.6%

   Gross profit per unit


$                 1,916


$                 2,091


$                  (175)


(8.4%)

   Gross profit as a % of revenue


5.1%


5.6%


(50)

bps


 

 

Sonic Automotive, Inc.
Results of Operations (Unaudited)










Used Vehicles




















Three Months Ended December 31,


Better / (Worse)



2015


2014


Change


% Change



(In thousands, except units and per unit data)

Reported:








   Revenue


$             607,430


$             562,993


$               44,437


7.9%

   Gross profit


$               38,772


$               37,834


$                    938


2.5%

   Unit sales


28,220


26,406


1,814


6.9%

   Revenue per unit


$               21,525


$               21,321


$                    204


1.0%

   Gross profit per unit


$                 1,374


$                 1,433


$                    (59)


(4.1%)

   Gross profit as a % of revenue


6.4%


6.7%


(30)

bps












Twelve Months Ended December 31,


Better / (Worse)



2015


2014


 Change


% Change



(In thousands, except units and per unit data)

Reported:








   Revenue


$          2,512,024


$          2,310,247


$             201,777


8.7%

   Gross profit


$             162,042


$             157,246


$                 4,796


3.0%

   Unit sales


117,123


110,113


7,010


6.4%

   Revenue per unit


$               21,448


$               20,981


$                    467


2.2%

   Gross profit per unit


$                 1,384


$                 1,428


$                    (44)


(3.1%)

   Gross profit as a % of revenue


6.5%


6.8%


(30)

bps












Three Months Ended December 31,


Better / (Worse)



2015


2014


 Change


% Change



(In thousands, except units and per unit data)

Same Store:








   Revenue


$             586,414


$             546,962


$               39,452


7.2%

   Gross profit


$               37,523


$               37,011


$                    512


1.4%

   Unit sales


27,182


25,597


1,585


6.2%

   Revenue per unit


$               21,574


$               21,368


$                    206


1.0%

   Gross profit per unit


$                 1,380


$                 1,446


$                    (66)


(4.6%)

   Gross profit as a % of revenue


6.4%


6.8%


(40)

bps












Twelve Months Ended December 31,


Better / (Worse)



2015


2014


 Change


% Change



(In thousands, except units and per unit data)

Same Store:








   Revenue


$          2,394,454


$          2,211,513


$             182,941


8.3%

   Gross profit


$             155,448


$             152,355


$                 3,093


2.0%

   Unit sales


111,212


105,161


6,051


5.8%

   Revenue per unit


$               21,531


$               21,030


$                    501


2.4%

   Gross profit per unit


$                 1,398


$                 1,449


$                    (51)


(3.5%)

   Gross profit as a % of revenue


6.5%


6.9%


(40)

bps


 

 

Sonic Automotive, Inc.
Results of Operations (Unaudited)










Wholesale Vehicles




















Three Months Ended December 31,


Better / (Worse)



2015


2014


Change


% Change



(In thousands, except units and per unit data)

Reported:









   Revenue


$               34,579


$               38,361


$               (3,782)


(9.9%)

   Gross profit (loss)


$               (2,003)


$               (1,122)


$                  (881)


(78.5%)

   Unit sales


6,594


6,912


(318)


(4.6%)

   Revenue per unit


$                 5,244


$                 5,550


$                  (306)


(5.5%)

   Gross profit (loss) per unit


$                  (304)


$                  (162)


$                  (142)


(87.7%)

   Gross profit (loss) as a % of revenue


(5.8%)


(2.9%)


(290)

bps













Twelve Months Ended December 31,


Better / (Worse)



2015


2014


Change


% Change



(In thousands, except units and per unit data)

Reported:









   Revenue


$             155,339


$             166,158


$             (10,819)


(6.5%)

   Gross profit (loss)


$               (7,368)


$               (3,616)


$               (3,752)


(103.8%)

   Unit sales


30,168


29,946


222


0.7%

   Revenue per unit


$                 5,149


$                 5,549


$                  (400)


(7.2%)

   Gross profit (loss) per unit


$                  (244)


$                  (121)


$                  (123)


(101.7%)

   Gross profit (loss) as a % of revenue


(4.7%)


(2.2%)


(250)

bps













Three Months Ended December 31,


Better / (Worse)



2015


2014


Change


% Change



(In thousands, except units and per unit data)

Same Store:









   Revenue


$               33,352


$               37,419


$               (4,067)


(10.9%)

   Gross profit (loss)


$               (1,850)


$                  (930)


$                  (920)


(98.9%)

   Unit sales


6,312


6,796


(484)


(7.1%)

   Revenue per unit


$                 5,284


$                 5,506


$                  (222)


(4.0%)

   Gross profit (loss) per unit


$                  (293)


$                  (137)


$                  (156)


(113.9%)

   Gross profit (loss) as a % of revenue


(5.5%)


(2.5%)


(300)

bps













Twelve Months Ended December 31,


Better / (Worse)



2015


2014


Change


% Change



(In thousands, except units and per unit data)

Same Store:









   Revenue


$             149,330


$             160,343


$             (11,013)


(6.9%)

   Gross profit (loss)


$               (6,689)


$               (3,303)


$               (3,386)


(102.5%)

   Unit sales


28,723


28,968


(245)


(0.8%)

   Revenue per unit


$                 5,199


$                 5,535


$                  (336)


(6.1%)

   Gross profit (loss) per unit


$                  (233)


$                  (114)


$                  (119)


(104.4%)

   Gross profit (loss) as a % of revenue


(4.5%)


(2.1%)


(240)

bps


 

 

Sonic Automotive, Inc.
Results of Operations (Unaudited)










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
















Three Months Ended December 31,


Better / (Worse)



2015


2014


 Change


% Change

Reported:


(In thousands)

Revenue









Customer pay


$             145,787


$             137,524


$                 8,263


6.0%

Warranty


58,923


52,396


6,527


12.5%

Wholesale parts


44,602


46,615


(2,013)


(4.3%)

Internal, sublet and other


95,756


86,389


9,367


10.8%

Total


$             345,068


$             322,924


$               22,144


6.9%

Gross profit









Customer pay


$               79,475


$               74,734


$                 4,741


6.3%

Warranty


31,795


29,135


2,660


9.1%

Wholesale parts


7,917


8,042


(125)


(1.6%)

Internal, sublet and other


49,886


44,353


5,533


12.5%

Total


$             169,074


$             156,264


$               12,810


8.2%

Gross profit as a % of revenue









Customer pay


54.5%


54.3%


20

bps


Warranty


54.0%


55.6%


(160)

bps


Wholesale parts


17.8%


17.3%


50

bps


Internal, sublet and other


52.1%


51.3%


80

bps


Total


49.0%


48.4%


60

bps













Twelve Months Ended December 31,


Better / (Worse)



2015


2014


 Change


% Change

Reported:


(In thousands)

Revenue









Customer pay


$             577,265


$             565,144


$               12,121


2.1%

Warranty


228,093


194,468


33,625


17.3%

Wholesale parts


181,296


188,687


(7,391)


(3.9%)

Internal, sublet and other


378,293


348,271


30,022


8.6%

Total


$          1,364,947


$          1,296,570


$               68,377


5.3%

Gross profit









Customer pay


$             316,026


$             309,885


$                 6,141


2.0%

Warranty


126,571


106,298


20,273


19.1%

Wholesale parts


32,249


32,633


(384)


(1.2%)

Internal, sublet and other


190,575


174,733


15,842


9.1%

Total


$             665,421


$             623,549


$               41,872


6.7%

Gross profit as a % of revenue









Customer pay


54.7%


54.8%


(10)

bps


Warranty


55.5%


54.7%


80

bps


Wholesale parts


17.8%


17.3%


50

bps


Internal, sublet and other


50.4%


50.2%


20

bps


Total


48.8%


48.1%


70

bps


 

 

Sonic Automotive, Inc.
Results of Operations (Unaudited)










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
















Three Months Ended December 31,


Better / (Worse)



2015


2014


 Change


% Change

Same Store:


(In thousands)

Revenue









Customer pay


$             144,672


$             134,662


$               10,010


7.4%

Warranty


58,520


51,482


7,038


13.7%

Wholesale parts


44,325


45,603


(1,278)


(2.8%)

Internal, sublet and other


93,519


83,613


9,906


11.8%

Total


$             341,036


$             315,360


$               25,676


8.1%

Gross profit









Customer pay


$               78,881


$               73,159


$                 5,722


7.8%

Warranty


31,584


28,649


2,935


10.2%

Wholesale parts


7,858


7,845


13


0.2%

Internal, sublet and other


48,925


42,897


6,028


14.1%

Total


$             167,248


$             152,550


$               14,698


9.6%

Gross profit as a % of revenue









Customer pay


54.5%


54.3%


20

bps


Warranty


54.0%


55.6%


(160)

bps


Wholesale parts


17.7%


17.2%


50

bps


Internal, sublet and other


52.3%


51.3%


100

bps


Total


49.0%


48.4%


60

bps













Twelve Months Ended December 31,


Better / (Worse)



2015


2014


 Change


% Change

Same Store:


(In thousands)

Revenue









Customer pay


$             566,939


$             545,349


$               21,590


4.0%

Warranty


224,478


187,094


37,384


20.0%

Wholesale parts


178,113


181,878


(3,765)


(2.1%)

Internal, sublet and other


365,554


335,435


30,119


9.0%

Total


$          1,335,084


$          1,249,756


$               85,328


6.8%

Gross profit









Customer pay


$             310,297


$             299,075


$               11,222


3.8%

Warranty


124,675


102,376


22,299


21.8%

Wholesale parts


31,599


31,300


299


1.0%

Internal, sublet and other


184,657


167,834


16,823


10.0%

Total


$             651,228


$             600,585


$               50,643


8.4%

Gross profit as a % of revenue









Customer pay


54.7%


54.8%


(10)

bps


Warranty


55.5%


54.7%


80

bps


Wholesale parts


17.7%


17.2%


50

bps


Internal, sublet and other


50.5%


50.0%


50

bps


Total


48.8%


48.1%


70

bps


 

 

Sonic Automotive, Inc.
Results of Operations (Unaudited)










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


















Three Months Ended December 31,


Better / (Worse)



2015


2014


Change


% Change



(In thousands, except per unit data)

Reported:









   Revenue


$               83,796


$               76,755


$                 7,041


9.2%

   Gross profit per retail unit (excludes fleet)


$                 1,321


$                 1,255


$                      66


5.3%





















Twelve Months Ended December 31,


Better / (Worse)



2015


2014


Change


% Change



(In thousands, except per unit data)

Reported:









   Revenue


$             326,588


$             300,095


$               26,493


8.8%

   Gross profit per retail unit (excludes fleet)


$                 1,279


$                 1,220


$                      59


4.8%












Three Months Ended December 31,


Better / (Worse)



2015


2014


Change


% Change



(In thousands, except per unit data)

Same Store:









   Revenue


$               82,764


$               75,480


$                 7,284


9.7%

   Gross profit per retail unit (excludes fleet)


$                 1,330


$                 1,260


$                      70


5.6%





















Twelve Months Ended December 31,


Better / (Worse)



2015


2014


Change


% Change



(In thousands, except per unit data)

Same Store:









   Revenue


$             318,476


$             290,368


$               28,108


9.7%

   Gross profit per retail unit (excludes fleet)


$                 1,288


$                 1,227


$                      61


5.0%

 

Sonic Automotive, Inc.

Results of Operations (Unaudited)










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


















Three Months Ended December 31,


Better / (Worse)



2015


2014


 Change


% Change



(In thousands)

Reported:









Compensation


$             169,510


$             155,382


$             (14,128)


(9.1%)

Advertising


15,470


15,409


(61)


(0.4%)

Rent


18,481


18,384


(97)


(0.5%)

Other


71,541


75,227


3,686


4.9%

Total


$             275,002


$             264,402


$             (10,600)


(4.0%)










Total pre-tax adjustments


2,323


(1,282)


(3,605)


(281.2%)

Adjusted SG&A 


$             277,325


$             263,120


(14,205)


(5.4%)










SG&A expenses as a % of gross profit








Compensation


46.6%


44.6%


(200)

bps


Advertising


4.3%


4.4%


10

bps


Rent


5.1%


5.3%


20

bps


Other


19.6%


21.6%


200

bps


Total


75.6%


75.9%


30

bps











Total pre-tax adjustments


0.6%


(0.4%)


(100)

bps


Adjusted SG&A as a % of gross profit


76.2%


75.5%


(70)

bps













Twelve Months Ended December 31,


Better / (Worse)



2015


2014


 Change


% Change



(In thousands)

Reported:








Compensation


$             666,668


$             638,875


$             (27,793)


(4.4%)

Advertising


61,630


57,437


(4,193)


(7.3%)

Rent


73,539


73,707


168


0.2%

Other


308,728


297,414


(11,314)


(3.8%)

Total


$          1,110,565


$          1,067,433


$             (43,132)


(4.0%)









Total pre-tax adjustments


(1,859)


5,673


7,532


132.8%

Adjusted SG&A 


$          1,108,706


$          1,073,106


(35,600)


(3.3%)










SG&A expenses as a % of gross profit








Compensation


47.1%


46.8%


(30)

bps


Advertising


4.4%


4.2%


(20)

bps


Rent


5.2%


5.4%


20

bps


Other


21.8%


21.7%


(10)

bps


Total


78.5%


78.1%


(40)

bps











Total pre-tax adjustments


(0.1%)


0.5%


60

bps


Adjusted SG&A as a % of gross profit


78.4%


78.6%


20

bps


 

SOURCE Sonic Automotive, Inc.



RELATED LINKS

http://www.sonicautomotive.com