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