CHARLOTTE, N.C., Oct. 11, 2017 /PRNewswire/ -- Sonic Automotive,
Inc. (NYSE: SAH) provided an update today on the impact of
Hurricanes Harvey and Irma on its operations.
Sonic has nineteen franchise stores and five collision repair
centers in the greater Houston
market. Hurricane Harvey affected operations at all of
Sonic's Houston market locations
during the third quarter. Approximately 20% of Sonic's
consolidated revenues for the first six months of fiscal 2017 were
attributable to the Houston market
locations. Hurricane Irma affected Sonic's operations in
Florida, Alabama and Georgia in varying degrees. Twenty-four
stores in these regions were impacted by Irma, with 11 Florida
locations being impacted the most. As of and since
September 15, 2017, all of the
locations affected by Hurricanes Harvey and Irma were operating,
with some locations' operations being limited due to damaged
facilities.
The effect of these events has had a negative impact on third
quarter fiscal 2017 results. As of today, Sonic now expects
to report GAAP earnings per share from continuing operations for
the third quarter of fiscal 2017 ranging between $0.44 and $0.46 and adjusted earnings per share
from continuing operations for the third quarter of fiscal 2017
ranging between $0.39 and
$0.41. Sonic estimates the negative impact experienced
in the third quarter of fiscal 2017 to be offset by a lift of
increased automotive retail sales and service activity in the
fourth quarter. Accordingly, Sonic expects fiscal 2017 GAAP
earnings per share from continuing operations to be between
$1.55 and $1.65 and expects fiscal
2017 adjusted earnings per share from continuing operations to be
between $1.85 and $1.95. See
the attached table for the reconciliation of these adjusted amounts
to their corresponding GAAP amounts.
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 our 2017 earnings expectations. 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 table contain
certain non-GAAP financial measures as defined under SEC rules,
such as adjusted earnings per share from continuing operations,
which exclude certain items disclosed in the attached financial
table. 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.
Reconciliation
of Non-GAAP Measures
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
September 30,
2017
|
|
December 31,
2017
|
|
|
From
|
|
To
|
|
From
|
|
To
|
Expected GAAP
Earnings Per Share from Coninuing Operations
|
|
$
0.44
|
|
0.46
|
|
$
1.55
|
|
1.65
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Gain on sale of
franchises
|
(0.12)
|
|
(0.12)
|
|
(0.12)
|
|
(0.12)
|
Impairment
charges
|
-
|
|
-
|
|
0.05
|
|
0.05
|
Storm
damage
|
0.04
|
|
0.04
|
|
0.14
|
|
0.14
|
Legal accruals and
settlements
|
0.03
|
|
0.03
|
|
0.01
|
|
0.01
|
Lease exit
adjustments
|
-
|
|
-
|
|
0.01
|
|
0.01
|
Loss on debt
extinguishment
|
-
|
|
-
|
|
0.21
|
|
0.21
|
|
|
|
|
|
|
|
|
|
Expected Adjusted
Earnings Per Share from Continuing Operations
(Non-GAAP)
|
|
$
0.39
|
|
$
0.41
|
|
$
1.85
|
|
$
1.95
|
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SOURCE Sonic Automotive, Inc.