CHARLOTTE, N.C., April 26, 2017 /PRNewswire/ -- Sonic
Automotive, Inc. (NYSE: SAH), one of the nation's largest
automotive retailers, today reported financial results for the
first quarter of 2017.
First Quarter 2017 Results
- EchoPark® stores retailed 1,673 units, up 77.8% over
the prior year quarter
- Record Q1 pre-owned units of 30,372 contributing gross profit
of $40.8 million
- Record Q1 fixed operations gross profit of $169.3 million, up 2.0% over the prior year
quarter
- Record Q1 F&I gross profit and gross profit per retail unit
of $83.1 million and $1,379, respectively
- Record Q1 total gross profit of $350.3
million, up 1.5% over the prior year quarter
GAAP Basis
Net income from continuing operations for the first quarter of
2017 was $0.0 million, or
$0.00 per diluted share. These
results include charges related to the redemption of Sonic's 7.0%
Senior Subordinated Notes due 2022 (the "7.0% Notes"),
weather-related physical damage costs and fixed asset impairments,
offset by net settlement gains related to legal matters. The
pre-tax charges related to the redemption of the 7.0% Notes totaled
approximately $15.3 million, or
$0.21 per diluted share. In
conjunction with this redemption, Sonic lowered its overall
borrowing costs, extended its debt maturities and increased its
liquidity through a private placement (with registration rights) of
$250.0 million of 6.125% Senior
Subordinated Notes due 2027 (the "6.125% Notes"). See the
attached schedules for additional information related to first
quarter 2017 charges. Also included in the GAAP reported
amounts for the first quarter of 2017 is a net after-tax loss from
operations related to EchoPark® of $3.3 million, or $0.07 per diluted share.
Comparatively, net income from continuing operations for the
first quarter of 2016 was $14.5
million, or $0.31 per diluted
share. The results from 2016 include charges for
weather-related physical damage costs. Also included in the GAAP
reported amounts for the first quarter of 2016 is a net after-tax
loss from operations related to EchoPark® of
$2.2 million, or $0.05 per diluted share.
Adjusted Basis
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 most directly comparable GAAP
financial measures.
Adjusted net income from continuing operations for the first
quarter of 2017 and 2016 was $10.3
million, or $0.23 per diluted
share, and $18.2 million, or
$0.39 per diluted share,
respectively. The adjustments in the 2017 quarterly period
relate to the redemption of Sonic's 7.0% Notes, weather-related
physical damage costs and fixed asset impairments, offset by net
settlement gains related to legal matters. The adjustments in
the 2016 quarterly period are for weather-related physical damage
costs.
Commentary
Jeff Dyke, Sonic's EVP of
Operations, stated, "As we expected and forecasted in our internal
models, the months of January and February in 2017 were
difficult. Weakness was driven by a lack of new retail volume
and a shorter fixed operations calendar in February. As we
typically see, March was very good. In fact, we were able to
set volume and gross records within the month of March.
However, the month was not strong enough to offset the
weakness experienced in the first two months of the year. I
was particularly pleased with our pre-owned and F&I
performances for the quarter, both posting record results.
Our F&I performance continues improving at a rapid pace,
setting an all-time PUR record in the month of March. March
was also our biggest used volume month in company history, which
helped support a resurgence of our business for the quarter.
EchoPark® continues to make great progress and we expect
to break ground in the San Antonio,
Texas market in April. We also launched One Sonic One
Experience ("OSOE") in a BMW store during the first quarter of 2017
and the store has ramped up nicely each month since our January
install. We will continue the rollout of EchoPark®
and OSOE as the performance of these initiatives continues to
validate our strategy."
B. Scott Smith, the Company's
Chief Executive Officer, noted, "We continue executing strategies
that yield long-term benefits. We believe the refinancing of
our 7.0% Notes with a 6.125% Note issuance will prove to be a big
win for us as we expect interest rates to continue to gradually
rise over the next several years. Although the charges
incurred during the quarter relating to the redemption depressed
our reported earnings, we will enjoy the benefits of this long-term
financing over the next ten years. Moving forward, we are
excited about the upcoming opening of our new Audi store in
Pensacola, Florida and the
introduction of the EchoPark® brand to the Texas market in 2017. We are committed
to growing the Company through the expansion of our
EchoPark® brand and through the expansion of our
franchised dealerships through acquisitions and open points.
We believe our strong relationships with our manufacturer partners
will allow us to continue to aggressively grow this part of our
business if the target fits within our acquisition strategy.
We welcome the opportunity to review these types of deals."
Dividend
Sonic's Board of Directors approved a quarterly dividend of
$0.05 per share payable in cash for
stockholders of record on June 15,
2017. The dividend will be payable on July 14, 2017.
First 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: 1713085
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: 1713085
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. More information about
EchoPark® Automotive can be found at
www.echopark.com.
Forward Looking Statements
Included herein are forward-looking statements, including
statements with respect to the anticipated benefits of our
long-term financing strategy, the anticipated expansion of our
EchoPark® business and our franchised dealerships, and
our belief that our strong relationships with our manufacturer
partners will allow us to continue to aggressively grow our
franchised dealership business through strategic acquisitions and
new dealership open points. There are many factors that
affect management's views about future events and trends of the
Company's business. These factors involve risks and
uncertainties that could cause actual results or trends to differ
materially from management's views, 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 ended December 31, 2016. The Company does not
undertake any obligation to update forward-looking information,
except as required under federal securities laws and the rules and
regulations of the Securities and Exchange Commission (the
"SEC").
Non-GAAP Financial Measures
This press release and the attached financial tables contain
certain non-GAAP financial measures as defined under SEC rules,
such as adjusted net income from continuing operations and related
earnings per diluted share, which exclude certain items disclosed
in the attached financial tables. As required by SEC rules,
the Company provides reconciliations of these non-GAAP financial
measures to the most directly comparable GAAP financial measures.
The Company believes that these non-GAAP financial measures
improve the transparency of the Company's disclosure, provide a
meaningful presentation of the Company's results from its core
business operations excluding the impact of items not related to
the Company's ongoing core business operations, and improve the
period-to-period comparability of the Company's results from its
core business operations.
Sonic Automotive,
Inc.
|
|
Results of
Operations (Unaudited)
|
|
|
|
This release contains
certain non-GAAP financial measures (the "Adjusted" amounts) as
defined under SEC rules, such as, but not limited to, adjusted
income from continuing operations and related earnings per share
data. The Company has reconciled these measures to the most
directly comparable GAAP measures (the "Reported" amounts) 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
March 31,
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
(In thousands,
except per share and unit data)
|
|
|
Revenues:
|
|
|
|
|
|
|
New retail
vehicles
|
|
$
1,147,380
|
|
$
1,149,437
|
|
|
Fleet
vehicles
|
|
24,552
|
|
15,133
|
|
|
Total
new vehicles
|
|
1,171,932
|
|
1,164,570
|
|
|
Used
vehicles
|
|
634,474
|
|
598,355
|
|
|
Wholesale
vehicles
|
|
46,310
|
|
44,374
|
|
|
Total
vehicles
|
|
1,852,716
|
|
1,807,299
|
|
|
Parts, service and
collision repair
|
|
352,043
|
|
346,054
|
|
|
Finance, insurance
and other, net
|
|
83,063
|
|
81,273
|
|
|
Total
revenues
|
|
2,287,822
|
|
2,234,626
|
|
|
Gross
profit
|
|
350,346
|
|
345,150
|
|
|
Selling, general and
administrative expenses
|
|
(292,234)
|
|
(284,375)
|
|
|
Impairment
charges
|
|
(510)
|
|
-
|
|
|
Depreciation and
amortization
|
|
(21,153)
|
|
(18,470)
|
|
|
Operating income
(loss)
|
|
36,449
|
|
42,305
|
|
|
Other income
(expense):
|
|
|
|
|
|
Interest expense,
floor plan
|
|
(8,387)
|
|
(6,436)
|
|
|
Interest expense,
other, net
|
|
(13,409)
|
|
(12,339)
|
|
|
Other income
(expense), net
|
|
(14,501)
|
|
104
|
|
|
Total
other income (expense)
|
|
(36,297)
|
|
(18,671)
|
|
|
Income (loss) from
continuing operations before taxes
|
|
152
|
|
23,634
|
|
|
Provision for income
taxes for continuing operations - benefit (expense)
|
|
(172)
|
|
(9,170)
|
|
|
Income (loss) from
continuing operations
|
|
(20)
|
|
14,464
|
|
|
Income (loss) from
discontinued operations
|
|
(521)
|
|
160
|
|
|
Net income
(loss)
|
|
$
(541)
|
|
$
14,624
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per common share:
|
|
|
|
|
|
Earnings (loss) per
share from continuing operations
|
|
$
-
|
|
$
0.31
|
|
|
Earnings (loss) per
share from discontinued operations
|
|
(0.01)
|
|
-
|
|
|
Earnings (loss) per
common share
|
|
$
(0.01)
|
|
$
0.31
|
|
|
Weighted average
common shares outstanding
|
|
44,791
|
|
47,122
|
|
|
|
|
|
|
|
|
Gross Margin Data
(Continuing Operations):
|
|
|
|
|
|
New retail
vehicles
|
|
5.1%
|
|
5.1%
|
|
|
Fleet
vehicles
|
|
(0.9%)
|
|
0.2%
|
|
|
Total
new vehicles
|
|
5.0%
|
|
5.0%
|
|
|
Used
vehicles
|
|
6.4%
|
|
6.8%
|
|
|
Wholesale
vehicles
|
|
(2.5%)
|
|
(2.4%)
|
|
|
Parts, service and
collision repair
|
|
48.1%
|
|
48.0%
|
|
|
Finance, insurance
and other
|
|
100.0%
|
|
100.0%
|
|
|
Overall gross
margin
|
|
15.3%
|
|
15.4%
|
|
|
|
|
|
|
|
|
SG&A Expenses
(Continuing Operations):
|
|
|
|
|
|
Compensation
|
|
$
176,547
|
|
$
169,041
|
|
|
Advertising
|
|
15,257
|
|
15,347
|
|
|
Rent
|
|
18,487
|
|
18,720
|
|
|
Other
|
|
81,943
|
|
81,267
|
|
|
Total
SG&A expenses
|
|
$
292,234
|
|
$
284,375
|
|
|
SG&A expenses as
% of gross profit
|
|
83.4%
|
|
82.4%
|
|
|
|
|
|
|
|
|
Operating Margin
%
|
|
1.6%
|
|
1.9%
|
|
|
|
|
|
|
|
|
Unit Data (Continuing
Operations):
|
|
|
|
|
|
New retail
units
|
|
29,870
|
|
30,156
|
|
|
Fleet
units
|
|
625
|
|
449
|
|
|
Total
new units
|
|
30,495
|
|
30,605
|
|
|
Used units
|
|
30,372
|
|
29,333
|
|
|
Wholesale
units
|
|
8,307
|
|
8,423
|
|
|
|
|
|
|
|
|
Sonic Automotive,
Inc.
|
Results of
Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2017
|
|
|
|
|
|
|
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
|
|
44,791
|
|
$
(20)
|
|
|
|
$
(521)
|
|
|
|
$
(541)
|
|
|
|
|
Effect of
participating securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-vested restricted stock
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
Basic earnings (loss)
and shares
|
|
44,791
|
|
$
(20)
|
|
$
-
|
|
$
(521)
|
|
$
(0.01)
|
|
$
(541)
|
|
$
(0.01)
|
|
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock
compensation plans
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) and shares
|
|
44,791
|
|
$
(20)
|
|
$
-
|
|
$
(521)
|
|
$
(0.01)
|
|
$
(541)
|
|
$
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment
charges
|
|
|
|
$
510
|
|
|
|
$
-
|
|
|
|
$
510
|
|
|
|
|
Storm
damage
|
|
|
|
2,382
|
|
|
|
-
|
|
|
|
2,382
|
|
|
|
|
Legal
settlements
|
|
|
|
(1,149)
|
|
|
|
-
|
|
|
|
(1,149)
|
|
|
|
|
Loss on debt
extinguishment
|
|
|
|
15,268
|
|
|
|
-
|
|
|
|
15,268
|
|
|
|
|
Total adjustments
before taxes
|
|
|
|
17,011
|
|
|
|
-
|
|
|
|
17,011
|
|
|
|
|
Income tax effect of
above adjustments
|
|
|
|
(6,677)
|
|
|
|
-
|
|
|
|
(6,677)
|
|
|
|
|
Effect
of adjustments, net of income taxes
|
|
|
|
$
10,334
|
|
$
0.23
|
|
$
-
|
|
$
-
|
|
$
10,334
|
|
$
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss),
diluted shares and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
diluted
earnings (loss) per share (1)
|
|
45,144
|
|
$
10,314
|
|
$
0.23
|
|
$
(521)
|
|
$
(0.01)
|
|
$
9,793
|
|
$
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net loss
attributable to EchoPark®operations was $0.07 per fully
diluted share in the three months ended March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2016
|
|
|
|
|
|
|
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
|
|
46,950
|
|
$
14,464
|
|
|
|
$
160
|
|
|
|
$
14,624
|
|
|
|
|
Effect of
participating securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-vested restricted stock
|
|
|
|
(6)
|
|
|
|
-
|
|
|
|
(6)
|
|
|
|
|
Basic earnings (loss)
and shares
|
|
46,950
|
|
$
14,458
|
|
$
0.31
|
|
$
160
|
|
$
-
|
|
$
14,618
|
|
$
0.31
|
|
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock
compensation plans
|
|
172
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) and shares
|
|
47,122
|
|
$
14,458
|
|
$
0.31
|
|
$
160
|
|
$
-
|
|
$
14,618
|
|
$
0.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Storm damage and
other
|
|
|
|
$
6,043
|
|
|
|
$
(523)
|
|
|
|
$
5,520
|
|
|
|
|
Total adjustments
before taxes
|
|
|
|
6,043
|
|
|
|
(523)
|
|
|
|
5,520
|
|
|
|
|
Income tax effect of
above adjustments
|
|
|
|
(2,345)
|
|
|
|
203
|
|
|
|
(2,142)
|
|
|
|
|
Effect
of adjustments, net of income taxes
|
|
|
|
$
3,698
|
|
$
0.08
|
|
$
(320)
|
|
$
(0.01)
|
|
$
3,378
|
|
$
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
diluted
earnings (loss) per share (2)
|
|
|
|
$
18,162
|
|
$
0.39
|
|
$
(160)
|
|
$
(0.01)
|
|
$
18,002
|
|
$
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Net loss
attributable to EchoPark®operations was $0.05 per fully
diluted share in the three months ended March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sonic Automotive,
Inc.
|
Results of
Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
Vehicles
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Better /
(Worse)
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
|
|
|
(In thousands,
except units and per unit data)
|
|
|
Reported:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
1,171,932
|
|
$
1,164,570
|
|
$
7,362
|
|
0.6%
|
|
|
Gross
profit
|
|
$
58,278
|
|
$
58,424
|
|
$
(146)
|
|
(0.2%)
|
|
|
Unit sales
|
|
30,495
|
|
30,605
|
|
(110)
|
|
(0.4%)
|
|
|
Revenue per
unit
|
|
$
38,430
|
|
$
38,052
|
|
$
378
|
|
1.0%
|
|
|
Gross profit per
unit
|
|
$
1,911
|
|
$
1,909
|
|
$
2
|
|
0.1%
|
|
|
Gross profit as a %
of revenue
|
|
5.0%
|
|
5.0%
|
|
-
|
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Better /
(Worse)
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
|
|
|
(In thousands,
except units and per unit data)
|
|
|
Same
Store:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
1,158,115
|
|
$
1,164,570
|
|
$
(6,455)
|
|
(0.6%)
|
|
|
Gross
profit
|
|
$
57,558
|
|
$
58,375
|
|
$
(817)
|
|
(1.4%)
|
|
|
Unit sales
|
|
30,188
|
|
30,605
|
|
(417)
|
|
(1.4%)
|
|
|
Revenue per
unit
|
|
$
38,363
|
|
$
38,052
|
|
$
311
|
|
0.8%
|
|
|
Gross profit per
unit
|
|
$
1,907
|
|
$
1,907
|
|
$
-
|
|
0.0%
|
|
|
Gross profit as a %
of revenue
|
|
5.0%
|
|
5.0%
|
|
-
|
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
Sonic Automotive,
Inc.
|
Results of
Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Used
Vehicles
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Better /
(Worse)
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
|
|
|
(In thousands,
except units and per unit data)
|
|
|
Reported:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
634,474
|
|
$
598,355
|
|
$
36,119
|
|
6.0%
|
|
|
Gross
profit
|
|
$
40,833
|
|
$
40,531
|
|
$
302
|
|
0.7%
|
|
|
Unit sales
|
|
30,372
|
|
29,333
|
|
1,039
|
|
3.5%
|
|
|
Revenue per
unit
|
|
$
20,890
|
|
$
20,399
|
|
$
491
|
|
2.4%
|
|
|
Gross profit per
unit
|
|
$
1,344
|
|
$
1,382
|
|
$
(38)
|
|
(2.7%)
|
|
|
Gross profit as a %
of revenue
|
|
6.4%
|
|
6.8%
|
|
(40)
|
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Better /
(Worse)
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
|
|
|
(In thousands,
except units and per unit data)
|
|
|
Same
Store:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
615,391
|
|
$
598,355
|
|
$
17,036
|
|
2.8%
|
|
|
Gross
profit
|
|
$
38,286
|
|
$
38,992
|
|
$
(706)
|
|
(1.8%)
|
|
|
Unit sales
|
|
29,458
|
|
29,333
|
|
125
|
|
0.4%
|
|
|
Revenue per
unit
|
|
$
20,890
|
|
$
20,399
|
|
$
491
|
|
2.4%
|
|
|
Gross profit per
unit
|
|
$
1,300
|
|
$
1,329
|
|
$
(29)
|
|
(2.2%)
|
|
|
Gross profit as a %
of revenue
|
|
6.2%
|
|
6.5%
|
|
(30)
|
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
Sonic Automotive,
Inc.
|
|
Results of
Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale
Vehicles
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Better /
(Worse)
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
|
|
|
(In thousands,
except units and per unit data)
|
|
|
Reported:
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
46,310
|
|
$
44,374
|
|
$
1,936
|
|
4.4%
|
|
|
Gross profit
(loss)
|
|
$
(1,172)
|
|
$
(1,078)
|
|
$
(94)
|
|
(8.7%)
|
|
|
Unit sales
|
|
8,307
|
|
8,423
|
|
(116)
|
|
(1.4%)
|
|
|
Revenue per
unit
|
|
$
5,575
|
|
$
5,268
|
|
$
307
|
|
5.8%
|
|
|
Gross profit (loss)
per unit
|
|
$
(141)
|
|
$
(128)
|
|
$
(13)
|
|
(10.2%)
|
|
|
Gross profit (loss)
as a % of revenue
|
|
(2.5%)
|
|
(2.4%)
|
|
(10)
|
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Better /
(Worse)
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
|
|
|
(In thousands,
except units and per unit data)
|
|
|
Same
Store:
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
45,260
|
|
$
44,353
|
|
$
907
|
|
2.0%
|
|
|
Gross profit
(loss)
|
|
$
(1,085)
|
|
$
(1,076)
|
|
$
(9)
|
|
(0.8%)
|
|
|
Unit sales
|
|
8,120
|
|
8,418
|
|
(298)
|
|
(3.5%)
|
|
|
Revenue per
unit
|
|
$
5,574
|
|
$
5,269
|
|
$
305
|
|
5.8%
|
|
|
Gross profit (loss)
per unit
|
|
$
(134)
|
|
$
(128)
|
|
$
(6)
|
|
(4.7%)
|
|
|
Gross profit (loss)
as a % of revenue
|
|
(2.4%)
|
|
(2.4%)
|
|
0
|
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
Sonic Automotive,
Inc.
|
Results of
Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parts, Service
and Collision Repair ("Fixed Operations")
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Better /
(Worse)
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
|
Reported:
|
|
(In
thousands)
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Customer
pay
|
|
$
138,134
|
|
$
147,394
|
|
$
(9,260)
|
|
(6.3%)
|
|
|
Warranty
|
|
69,919
|
|
57,559
|
|
12,360
|
|
21.5%
|
|
|
Wholesale
parts
|
|
43,281
|
|
45,309
|
|
(2,028)
|
|
(4.5%)
|
|
|
Internal,
sublet and other
|
|
100,709
|
|
95,792
|
|
4,917
|
|
5.1%
|
|
|
Total
|
|
$
352,043
|
|
$
346,054
|
|
$
5,989
|
|
1.7%
|
|
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
Customer
pay
|
|
$
73,440
|
|
$
80,358
|
|
$
(6,918)
|
|
(8.6%)
|
|
|
Warranty
|
|
38,670
|
|
31,326
|
|
7,344
|
|
23.4%
|
|
|
Wholesale
parts
|
|
7,550
|
|
7,941
|
|
(391)
|
|
(4.9%)
|
|
|
Internal,
sublet and other
|
|
49,684
|
|
46,375
|
|
3,309
|
|
7.1%
|
|
|
Total
|
|
$
169,344
|
|
$
166,000
|
|
$
3,344
|
|
2.0%
|
|
|
Gross profit as a %
of revenue
|
|
|
|
|
|
|
|
|
|
|
Customer
pay
|
|
53.2%
|
|
54.5%
|
|
(130)
|
|
bps
|
|
|
Warranty
|
|
55.3%
|
|
54.4%
|
|
90
|
|
bps
|
|
|
Wholesale
parts
|
|
17.4%
|
|
17.5%
|
|
(10)
|
|
bps
|
|
|
Internal,
sublet and other
|
|
49.3%
|
|
48.4%
|
|
90
|
|
bps
|
|
|
Total
|
|
48.1%
|
|
48.0%
|
|
10
|
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sonic Automotive,
Inc.
|
|
Results of
Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parts, Service
and Collision Repair ("Fixed Operations")
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Better /
(Worse)
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
|
Same
Store:
|
|
(In
thousands)
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Customer
pay
|
|
$
137,419
|
|
$
147,394
|
|
$
(9,975)
|
|
(6.8%)
|
|
|
Warranty
|
|
69,589
|
|
57,559
|
|
12,030
|
|
20.9%
|
|
|
Wholesale
parts
|
|
43,228
|
|
45,309
|
|
(2,081)
|
|
(4.6%)
|
|
|
Internal,
sublet and other
|
|
99,209
|
|
95,792
|
|
3,417
|
|
3.6%
|
|
|
Total
|
|
$
349,445
|
|
$
346,054
|
|
$
3,391
|
|
1.0%
|
|
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
Customer
pay
|
|
$
73,089
|
|
$
80,358
|
|
$
(7,269)
|
|
(9.0%)
|
|
|
Warranty
|
|
38,439
|
|
31,282
|
|
7,157
|
|
22.9%
|
|
|
Wholesale
parts
|
|
7,537
|
|
7,941
|
|
(404)
|
|
(5.1%)
|
|
|
Internal,
sublet and other
|
|
48,413
|
|
46,068
|
|
2,345
|
|
5.1%
|
|
|
Total
|
|
$
167,478
|
|
$
165,649
|
|
$
1,829
|
|
1.1%
|
|
|
Gross profit as a %
of revenue
|
|
|
|
|
|
|
|
|
|
|
Customer
pay
|
|
53.2%
|
|
54.5%
|
|
(130)
|
|
bps
|
|
|
Warranty
|
|
55.2%
|
|
54.3%
|
|
90
|
|
bps
|
|
|
Wholesale
parts
|
|
17.4%
|
|
17.5%
|
|
(10)
|
|
bps
|
|
|
Internal,
sublet and other
|
|
48.8%
|
|
48.1%
|
|
70
|
|
bps
|
|
|
Total
|
|
47.9%
|
|
47.9%
|
|
0
|
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sonic Automotive,
Inc.
|
|
Results of
Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance,
Insurance and Other, Net ("F&I")
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Better /
(Worse)
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
|
|
|
(In thousands,
except per unit data)
|
|
|
Reported:
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
83,063
|
|
$
81,273
|
|
$
1,790
|
|
2.2%
|
|
|
Gross profit per
retail unit (excludes fleet)
|
|
$
1,379
|
|
$
1,366
|
|
$
13
|
|
1.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Better /
(Worse)
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
|
|
|
(In thousands,
except per unit data)
|
|
|
Same
Store:
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
80,860
|
|
$
80,852
|
|
$
8
|
|
0.0%
|
|
|
Gross profit per
retail unit (excludes fleet)
|
|
$
1,370
|
|
$
1,359
|
|
$
11
|
|
0.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sonic Automotive,
Inc.
|
|
Results of
Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
General and Administrative ("SG&A") Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Better /
(Worse)
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
|
|
|
(In
thousands)
|
|
|
Reported:
|
|
|
|
|
|
|
|
|
|
|
Compensation
|
|
$
176,547
|
|
$
169,041
|
|
$
(7,506)
|
|
(4.4%)
|
|
|
Advertising
|
|
15,257
|
|
15,347
|
|
90
|
|
0.6%
|
|
|
Rent
|
|
18,487
|
|
18,720
|
|
233
|
|
1.2%
|
|
|
Other
|
|
81,943
|
|
81,267
|
|
(676)
|
|
(0.8%)
|
|
|
Total
SG&A expenses
|
|
$
292,234
|
|
$
284,375
|
|
$
(7,859)
|
|
(2.8%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Storm
damage
|
|
$
(2,382)
|
|
$
(6,043)
|
|
|
|
|
|
|
Legal
settlements
|
|
1,149
|
|
-
|
|
|
|
|
|
|
Total
SG&A adjustments
|
|
$
(1,233)
|
|
$
(6,043)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted:
|
|
|
|
|
|
|
|
|
|
|
Total
adjusted SG&A expenses
|
|
$
291,001
|
|
$
278,332
|
|
$
(12,669)
|
|
(4.6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported:
|
|
|
|
|
|
|
|
|
|
|
SG&A expenses as
a % of gross profit
|
|
|
|
|
|
|
|
|
|
Compensation
|
|
50.4%
|
|
49.0%
|
|
(140)
|
|
bps
|
|
|
Advertising
|
|
4.4%
|
|
4.4%
|
|
0
|
|
bps
|
|
|
Rent
|
|
5.3%
|
|
5.4%
|
|
10
|
|
bps
|
|
|
Other
|
|
23.3%
|
|
23.6%
|
|
30
|
|
bps
|
|
|
Total
SG&A expenses as a % of gross profit
|
|
83.4%
|
|
82.4%
|
|
(100)
|
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Storm
damage
|
|
(0.6%)
|
|
(1.8%)
|
|
|
|
|
|
|
Legal
settlements
|
|
0.3%
|
|
0.0%
|
|
|
|
|
|
|
Total
effect of adjustments
|
|
(0.3%)
|
|
(1.8%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted:
|
|
|
|
|
|
|
|
|
|
|
Total adjusted
SG&A as a % of gross profit
|
|
83.1%
|
|
80.6%
|
|
(250)
|
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sonic-automotive-inc-reports-first-quarter-results-300445503.html
SOURCE Sonic Automotive, Inc.