UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 21, 2015
SONIC AUTOMOTIVE, INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction
of incorporation)
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1-13395 |
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56-2010790 |
(Commission
File Number) |
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(IRS Employer
Identification No.) |
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4401 Colwick Road
Charlotte, North Carolina |
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28211 |
(Address of principal executive offices) |
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(Zip Code) |
Registrants telephone number, including area code: (704) 566-2400
Not Applicable
(Former
name or former address, if changed since last report.)
Check the appropriate box below
if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. |
Results of Operations and Financial Condition. |
On April 21, 2015, Sonic
Automotive, Inc. (the Company) issued a press release announcing its financial results for its fiscal first quarter ended March 31, 2015. A copy of the press release is attached hereto as Exhibit 99.1 and a copy of the earnings call
presentation materials is attached hereto as Exhibit 99.2.
Item 7.01. |
Regulation FD Disclosure. |
On April 21, 2015, the Company issued a press release
announcing the approval of a quarterly cash dividend. A copy of the press release is attached hereto as Exhibit 99.3.
Item 9.01. |
Financial Statements and Exhibits. |
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99.1 |
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Press release of Sonic Automotive, Inc., dated April 21, 2015, reporting Sonic Automotive, Inc.s financial results for the fiscal first quarter ended March 31, 2015 |
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99.2 |
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Earnings call presentation materials |
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99.3 |
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Press release of Sonic Automotive, Inc., dated April 21, 2015, reporting quarterly cash dividend |
The information in this Form 8-K, including the exhibits attached hereto, is being furnished and shall
not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by
reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
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SONIC AUTOMOTIVE, INC. |
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Date: April 21, 2015 |
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By: |
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/s/ Stephen K. Coss |
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Stephen K. Coss |
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Senior Vice President and General Counsel |
INDEX TO EXHIBITS
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Exhibit No. |
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Description |
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99.1 |
|
Press release of Sonic Automotive, Inc., dated April 21, 2015, reporting Sonic Automotive, Inc.s financial results for the fiscal first quarter ended March 31, 2015 |
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99.2 |
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Earnings call presentation materials |
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99.3 |
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Press release of Sonic Automotive, Inc., dated April 21, 2015, reporting quarterly cash dividend |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Sonic Automotive, Inc. Reports Record Gross Profit
Retailed Record Number of New and Pre-Owned Units
First Quarter 2015 Results
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Record Q1 new retail units of 31,334, up 4.3%, over the prior year quarter |
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Record Q1 pre-owned units and gross profit of 28,135 and $40.8 million, respectively |
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Record Q1 fixed operations gross profit of $156.4 million, up 2.8% over the prior year quarter |
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Record Q1 total gross profit of $335.0 million, up 1.8% over the prior year quarter |
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EchoPark® stores retail 660 units |
CHARLOTTE, N.C.
April 21, 2015 Sonic Automotive, Inc. (NYSE: SAH), one of the nations largest automotive retailers, today reported adjusted net income from continuing operations for the first quarter of 2015 of $18.8 million, or
$0.37 per diluted share. Included in these adjusted amounts are pre-tax expenses of $4.9 million, or $0.06 per diluted share, related to the Companys EchoPark® initiative and $3.8
million, or $0.05 per diluted share, related to its One Sonic-One Experience initiative.
Net income from continuing operations for the first quarter of
2014 was $20.0 million, or $0.38 per diluted share. Included in these amounts are pre-tax expenses of $1.7 million, or $0.02 per diluted share, related to the Companys EchoPark®
initiative and $2.1 million, or $0.02 per diluted share, related to its One Sonic-One Experience initiative.
On a GAAP basis, net income from continuing
operations and related diluted earnings per share for the first quarter 2015 were $14.4 million and $0.28 per share, respectively. There were no adjustments in the first quarter of 2014. See the accompanying tables for details of quarterly
adjustments.
Jeff Dyke, Sonics EVP of Operations, stated, We had another solid record setting quarter! Our One Sonic-One Experience stores
are making great progress. Our first store that adopted the process, Town & Country Toyota, has gained more than 600 basis points of market share in each of the last two months year-over-year, is tracking to do the same again in April, and
has experienced steady growth in profitability. More exciting is the remaining Charlotte stores are following in the same path giving us great confidence that we are on the right track. While the change has been significant, the results from a share
and guest satisfaction perspective are adding to our resolve that the decisions we have made to enhance our guest experience are right on target. We are also equally excited about EchoPark®!
We sold 660 units for the quarter, just under 300 units in the month of March, and have grown the business rapidly. These results are a direct reflection of our business plan, our teams depth of experience, our unmatched guest experience and a
response from our customer base that confirms what we were trying to accomplish. As these two strategies come to life, we look for the Sonic Brand to become a household name in the retail world beyond automotive driven by an unmatched customer
experience. None of this would be possible without the extraordinary effort of our remarkable team many thanks to them! We look forward to continued success in the coming years.
B. Scott Smith, Sonics President, remarked, We have made a lot of progress in the first quarter of
the year. Our Charlotte stores have migrated to our One Sonic-One Experience platform and we now have three EchoPark® retail operating locations in Denver, with progress made to open an
additional location by the end of 2015. We are very pleased with how our associates and customers are embracing the technologies and improved transaction processes. Although there is still a lot of work to be done to ensure the long-term
sustainability of these initiatives, the cornerstones have been set and we look forward to building upon these in the future.
First Quarter
Earnings Conference Call
Senior management will host a conference call today at 11:00 A.M. (Eastern) to discuss the quarters results. To access
the live broadcast of the call over the Internet go to: www.sonicautomotive.com, then click on Our Company, then Investor Relations, then Webcasts & Presentations.
Presentation materials for the conference call can be accessed on the Companys 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: 20767539
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: 20767539
About Sonic Automotive
Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, N.C., is one of the nations largest automotive retailers. Sonic can be reached on the
web at www.sonicautomotive.com.
Included herein are forward-looking statements, including statements with respect to anticipated future success
and impacts from the implementation of our planned customer experience and stand-alone pre-owned store initiatives. There are many factors that affect managements views about future events and trends of the Companys business. These
factors involve risk and uncertainties that could cause actual results or trends to differ materially from managements 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 Companys 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.
###
Contact: |
Heath Byrd, Chief Financial Officer (704) 566-2400 |
C.G. Saffer, Vice President and Chief
Accounting Officer (704) 566-2439
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 Companys disclosure by providing period-to-period comparability of the Companys results from operations.
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Three Months Ended March 31, |
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2015 |
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2014 |
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(In thousands, except per share and unit data) |
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Revenues: |
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New retail vehicles |
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$ |
1,190,215 |
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$ |
1,112,291 |
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Fleet vehicles |
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12,108 |
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34,329 |
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Total new vehicles |
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1,202,323 |
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1,146,620 |
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Used vehicles |
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593,742 |
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559,816 |
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Wholesale vehicles |
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41,656 |
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41,598 |
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Total vehicles |
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1,837,721 |
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1,748,034 |
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Parts, service and collision repair |
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323,194 |
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318,771 |
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Finance, insurance and other, net |
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74,600 |
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69,581 |
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Total revenues |
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2,235,515 |
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2,136,386 |
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Gross profit |
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334,959 |
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|
329,000 |
|
Selling, general and administrative expenses |
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|
(270,862 |
) |
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(263,973 |
) |
Impairment charges |
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|
(6,192 |
) |
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(3 |
) |
Depreciation and amortization |
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(16,409 |
) |
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(14,381 |
) |
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Operating income (loss) |
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41,496 |
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50,643 |
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Other income (expense): |
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Interest expense, floor plan |
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(4,778 |
) |
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(4,689 |
) |
Interest expense, other, net |
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(13,219 |
) |
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(13,818 |
) |
Other income (expense), net |
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90 |
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|
97 |
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Total other income (expense) |
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(17,907 |
) |
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(18,410 |
) |
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Income (loss) from continuing operations before taxes |
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23,589 |
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32,233 |
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Provision for income taxes - benefit (expense) |
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(9,200 |
) |
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(12,249 |
) |
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Income (loss) from continuing operations |
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14,389 |
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19,984 |
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Income (loss) from discontinued operations |
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|
(422 |
) |
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|
(598 |
) |
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Net income (loss) |
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$ |
13,967 |
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$ |
19,386 |
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Diluted earnings (loss) per common share: |
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Earnings (loss) per share from continuing operations |
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$ |
0.28 |
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$ |
0.38 |
|
Earnings (loss) per share from discontinued operations |
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|
(0.01 |
) |
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(0.02 |
) |
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|
Earnings (loss) per common share |
|
$ |
0.27 |
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|
$ |
0.36 |
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|
|
|
|
|
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|
Weighted average common shares outstanding |
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|
51,403 |
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|
52,946 |
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Gross Margin Data (Continuing Operations): |
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New retail vehicles |
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|
5.3 |
% |
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|
5.9 |
% |
Fleet vehicles |
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(0.6 |
%) |
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2.6 |
% |
Total new vehicles |
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5.3 |
% |
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5.8 |
% |
Used vehicles |
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6.9 |
% |
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7.3 |
% |
Wholesale vehicles |
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(0.5 |
%) |
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(0.2 |
%) |
Parts, service and collision repair |
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48.4 |
% |
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47.7 |
% |
Finance, insurance and other |
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100.0 |
% |
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|
100.0 |
% |
Overall gross margin |
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|
15.0 |
% |
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15.4 |
% |
|
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|
SG&A Expenses (Continuing Operations): |
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|
|
|
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Compensation |
|
$ |
161,858 |
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$ |
157,154 |
|
Advertising |
|
|
15,332 |
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|
14,119 |
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Rent |
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|
18,254 |
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|
|
18,535 |
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Other |
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|
75,418 |
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|
74,165 |
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Total SG&A expenses |
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$ |
270,862 |
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$ |
263,973 |
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SG&A expenses as % of gross profit |
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80.9 |
% |
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80.2 |
% |
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Operating Margin % |
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1.9 |
% |
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2.4 |
% |
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|
Unit Data (Continuing Operations): |
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|
New retail units |
|
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31,334 |
|
|
|
30,029 |
|
Fleet units |
|
|
355 |
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|
|
1,102 |
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|
|
|
|
|
|
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Total new units |
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31,689 |
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|
|
31,131 |
|
Used units |
|
|
28,135 |
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|
|
27,657 |
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Wholesale units |
|
|
7,777 |
|
|
|
7,380 |
|
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Per Share Data
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Three Months Ended March 31, 2015 |
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Income (Loss) From Continuing Operations |
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Income (Loss) From Discontinued Average |
|
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Net Income (Loss) |
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Weighted Average Shares |
|
|
Amount |
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|
Per Share Amount |
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|
Amount |
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|
Per Share Amount |
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|
Amount |
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Per Share Amount |
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(In thousands, except per share amounts) |
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Reported: |
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|
|
|
|
|
|
|
|
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|
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|
|
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Earnings (loss) and shares |
|
|
50,854 |
|
|
$ |
14,389 |
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|
|
|
|
|
$ |
(422 |
) |
|
|
|
|
|
$ |
13,967 |
|
|
|
|
|
Effect of participating securities: |
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|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Non-vested restricted stock and stock units |
|
|
|
|
|
|
(5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5 |
) |
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|
|
|
|
|
|
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|
|
|
|
|
|
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|
Basic earnings (loss) and shares |
|
|
50,854 |
|
|
$ |
14,384 |
|
|
$ |
0.28 |
|
|
$ |
(422 |
) |
|
$ |
(0.01 |
) |
|
$ |
13,962 |
|
|
$ |
0.27 |
|
Effect of dilutive securities: |
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|
|
|
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|
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|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|
|
|
Stock compensation plans |
|
|
549 |
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|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
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|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
Diluted earnings (loss) and shares |
|
|
51,403 |
|
|
$ |
14,384 |
|
|
$ |
0.28 |
|
|
$ |
(422 |
) |
|
$ |
(0.01 |
) |
|
$ |
13,962 |
|
|
$ |
0.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments (net of tax): |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment charges |
|
|
|
|
|
$ |
3,777 |
|
|
$ |
0.07 |
|
|
|
|
|
|
$ |
|
|
|
$ |
3,777 |
|
|
$ |
0.07 |
|
Other |
|
|
|
|
|
|
634 |
|
|
|
0.02 |
|
|
|
|
|
|
|
|
|
|
|
634 |
|
|
|
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total adjustments |
|
|
|
|
|
$ |
4,411 |
|
|
$ |
0.09 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
4,411 |
|
|
$ |
0.09 |
|
|
|
|
|
|
|
|
|
Adjusted: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
Earnings (loss) and |
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|
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|
|
|
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|
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|
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|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share (1) |
|
|
|
|
|
$ |
18,800 |
|
|
$ |
0.37 |
|
|
$ |
(422 |
) |
|
$ |
(0.01 |
) |
|
$ |
18,378 |
|
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Expenses attributable to the EchoPark® initiative were $0.06 per fully diluted share in the three months ended March 31, 2015. |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2014 |
|
|
|
|
|
|
Income (Loss) From Continuing Operations |
|
|
Income (Loss) From Discontinued Operations |
|
|
Net Income (Loss) |
|
|
|
Weighted Average Shares |
|
|
Amount |
|
|
Per Share Amount |
|
|
Amount |
|
|
Per Share Amount |
|
|
Amount |
|
|
Per Share Amount |
|
|
|
(In thousands, except per share amounts) |
|
Reported: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) and shares |
|
|
52,418 |
|
|
$ |
19,984 |
|
|
|
|
|
|
$ |
(598 |
) |
|
|
|
|
|
$ |
19,386 |
|
|
|
|
|
Effect of participating securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-vested restricted stock and stock units |
|
|
|
|
|
|
(63 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(63 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) and shares |
|
|
52,418 |
|
|
$ |
19,921 |
|
|
$ |
0.38 |
|
|
$ |
(598 |
) |
|
$ |
(0.01 |
) |
|
$ |
19,323 |
|
|
$ |
0.37 |
|
Effect of dilutive securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock compensation plans |
|
|
528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) and shares (2) |
|
|
52,946 |
|
|
$ |
19,921 |
|
|
$ |
0.38 |
|
|
$ |
(598 |
) |
|
$ |
(0.02 |
) |
|
$ |
19,323 |
|
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) |
Expenses attributable to the EchoPark® initiative were $0.02 per fully diluted share in the three months ended March 31, 2014. |
Sonic Automotive, Inc.
Results of Operations (Unaudited)
New Vehicles
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
Better / (Worse) |
|
|
|
2015 |
|
|
2014 |
|
|
Change |
|
|
% Change |
|
|
|
(In thousands, except units and per unit data) |
|
Reported: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
1,202,323 |
|
|
$ |
1,146,620 |
|
|
$ |
55,703 |
|
|
|
4.9 |
% |
Gross profit |
|
$ |
63,350 |
|
|
$ |
66,673 |
|
|
$ |
(3,323 |
) |
|
|
(5.0 |
%) |
Unit sales |
|
|
31,689 |
|
|
|
31,131 |
|
|
|
558 |
|
|
|
1.8 |
% |
Revenue per unit |
|
$ |
37,941 |
|
|
$ |
36,832 |
|
|
$ |
1,109 |
|
|
|
3.0 |
% |
Gross profit per unit |
|
$ |
1,999 |
|
|
$ |
2,142 |
|
|
$ |
(143 |
) |
|
|
(6.7 |
%) |
Gross profit as a % of revenue |
|
|
5.3 |
% |
|
|
5.8 |
% |
|
|
(50 |
) bps |
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
Better / (Worse) |
|
|
|
2015 |
|
|
2014 |
|
|
Change |
|
|
% Change |
|
|
|
(In thousands, except units and per unit data) |
|
Same Store: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
1,190,252 |
|
|
$ |
1,110,066 |
|
|
$ |
80,186 |
|
|
|
7.2 |
% |
Gross profit |
|
$ |
62,438 |
|
|
$ |
64,632 |
|
|
$ |
(2,194 |
) |
|
|
(3.4 |
%) |
Unit sales |
|
|
31,336 |
|
|
|
30,082 |
|
|
|
1,254 |
|
|
|
4.2 |
% |
Revenue per unit |
|
$ |
37,984 |
|
|
$ |
36,901 |
|
|
$ |
1,083 |
|
|
|
2.9 |
% |
Gross profit per unit |
|
$ |
1,993 |
|
|
$ |
2,149 |
|
|
$ |
(156 |
) |
|
|
(7.3 |
%) |
Gross profit as a % of revenue |
|
|
5.2 |
% |
|
|
5.8 |
% |
|
|
(60 |
) bps |
|
|
|
|
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Used Vehicles
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
Better / (Worse) |
|
|
|
2015 |
|
|
2014 |
|
|
Change |
|
|
% Change |
|
|
|
(In thousands, except units and per unit data) |
|
Reported: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
593,742 |
|
|
$ |
559,816 |
|
|
$ |
33,926 |
|
|
|
6.1 |
% |
Gross profit |
|
$ |
40,844 |
|
|
$ |
40,693 |
|
|
$ |
151 |
|
|
|
0.4 |
% |
Unit sales |
|
|
28,135 |
|
|
|
27,657 |
|
|
|
478 |
|
|
|
1.7 |
% |
Revenue per unit |
|
$ |
21,103 |
|
|
$ |
20,241 |
|
|
$ |
862 |
|
|
|
4.3 |
% |
Gross profit per unit |
|
$ |
1,452 |
|
|
$ |
1,471 |
|
|
$ |
(19 |
) |
|
|
(1.3 |
%) |
Gross profit as a % of revenue |
|
|
6.9 |
% |
|
|
7.3 |
% |
|
|
(40 |
) bps |
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
Better / (Worse) |
|
|
|
2015 |
|
|
2014 |
|
|
Change |
|
|
% Change |
|
|
|
(In thousands, except units and per unit data) |
|
Same Store: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
572,759 |
|
|
$ |
537,639 |
|
|
$ |
35,120 |
|
|
|
6.5 |
% |
Gross profit |
|
$ |
40,013 |
|
|
$ |
39,286 |
|
|
$ |
727 |
|
|
|
1.9 |
% |
Unit sales |
|
|
27,079 |
|
|
|
26,601 |
|
|
|
478 |
|
|
|
1.8 |
% |
Revenue per unit |
|
$ |
21,151 |
|
|
$ |
20,211 |
|
|
$ |
940 |
|
|
|
4.7 |
% |
Gross profit per unit |
|
$ |
1,478 |
|
|
$ |
1,477 |
|
|
$ |
1 |
|
|
|
0.1 |
% |
Gross profit as a % of revenue |
|
|
7.0 |
% |
|
|
7.3 |
% |
|
|
(30 |
) bps |
|
|
|
|
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Wholesale Vehicles
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
Better / (Worse) |
|
|
|
2015 |
|
|
2014 |
|
|
Change |
|
|
% Change |
|
|
|
(In thousands, except units and per unit data) |
|
Reported: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
41,656 |
|
|
$ |
41,598 |
|
|
$ |
58 |
|
|
|
0.1 |
% |
Gross profit (loss) |
|
$ |
(210 |
) |
|
$ |
(93 |
) |
|
$ |
(117 |
) |
|
|
(125.8 |
%) |
Unit sales |
|
|
7,777 |
|
|
|
7,380 |
|
|
|
397 |
|
|
|
5.4 |
% |
Revenue per unit |
|
$ |
5,356 |
|
|
$ |
5,637 |
|
|
$ |
(281 |
) |
|
|
(5.0 |
%) |
Gross profit (loss) per unit |
|
$ |
(27 |
) |
|
$ |
(13 |
) |
|
$ |
(14 |
) |
|
|
(107.7 |
%) |
Gross profit (loss) as a % of revenue |
|
|
(0.5 |
%) |
|
|
(0.2 |
%) |
|
|
(30 |
) bps |
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
Better / (Worse) |
|
|
|
2015 |
|
|
2014 |
|
|
Change |
|
|
% Change |
|
|
|
(In thousands, except units and per unit data) |
|
Same Store: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
40,773 |
|
|
$ |
40,246 |
|
|
$ |
527 |
|
|
|
1.3 |
% |
Gross profit (loss) |
|
$ |
(186 |
) |
|
$ |
(23 |
) |
|
$ |
(163 |
) |
|
|
(708.7 |
%) |
Unit sales |
|
|
7,523 |
|
|
|
7,145 |
|
|
|
378 |
|
|
|
5.3 |
% |
Revenue per unit |
|
$ |
5,420 |
|
|
$ |
5,633 |
|
|
$ |
(213 |
) |
|
|
(3.8 |
%) |
Gross profit (loss) per unit |
|
$ |
(25 |
) |
|
$ |
(3 |
) |
|
$ |
(22 |
) |
|
|
(733.3 |
%) |
Gross profit (loss) as a % of revenue |
|
|
(0.5 |
%) |
|
|
(0.1 |
%) |
|
|
(40 |
) bps |
|
|
|
|
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Parts, Service and Collision Repair (Fixed Operations)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
Better / (Worse) |
|
|
|
2015 |
|
|
2014 |
|
|
Change |
|
|
% Change |
|
|
|
(In thousands) |
|
Reported: |
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer pay |
|
$ |
137,623 |
|
|
$ |
141,121 |
|
|
$ |
(3,498 |
) |
|
|
(2.5 |
%) |
Warranty |
|
|
53,498 |
|
|
|
46,591 |
|
|
|
6,907 |
|
|
|
14.8 |
% |
Wholesale parts |
|
|
45,012 |
|
|
|
47,944 |
|
|
|
(2,932 |
) |
|
|
(6.1 |
%) |
Internal, sublet and other |
|
|
87,061 |
|
|
|
83,115 |
|
|
|
3,946 |
|
|
|
4.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
323,194 |
|
|
$ |
318,771 |
|
|
$ |
4,423 |
|
|
|
1.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer pay |
|
$ |
75,678 |
|
|
$ |
77,999 |
|
|
$ |
(2,321 |
) |
|
|
(3.0 |
%) |
Warranty |
|
|
29,760 |
|
|
|
25,238 |
|
|
|
4,522 |
|
|
|
17.9 |
% |
Wholesale parts |
|
|
8,138 |
|
|
|
8,161 |
|
|
|
(23 |
) |
|
|
(0.3 |
%) |
Internal, sublet and other |
|
|
42,799 |
|
|
|
40,748 |
|
|
|
2,051 |
|
|
|
5.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
156,375 |
|
|
$ |
152,146 |
|
|
$ |
4,229 |
|
|
|
2.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit as a % of revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer pay |
|
|
55.0 |
% |
|
|
55.3 |
% |
|
|
(30 |
) bps |
|
|
|
|
Warranty |
|
|
55.6 |
% |
|
|
54.2 |
% |
|
|
140 |
bps |
|
|
|
|
Wholesale parts |
|
|
18.1 |
% |
|
|
17.0 |
% |
|
|
110 |
bps |
|
|
|
|
Internal, sublet and other |
|
|
49.2 |
% |
|
|
49.0 |
% |
|
|
20 |
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
48.4 |
% |
|
|
47.7 |
% |
|
|
70 |
bps |
|
|
|
|
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Parts, Service and Collision Repair (Fixed Operations)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
Better / (Worse) |
|
|
|
2015 |
|
|
2014 |
|
|
Change |
|
|
% Change |
|
|
|
(In thousands) |
|
Same Store: |
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer pay |
|
$ |
135,768 |
|
|
$ |
136,486 |
|
|
$ |
(718 |
) |
|
|
(0.5 |
%) |
Warranty |
|
|
52,971 |
|
|
|
44,774 |
|
|
|
8,197 |
|
|
|
18.3 |
% |
Wholesale parts |
|
|
44,580 |
|
|
|
46,667 |
|
|
|
(2,087 |
) |
|
|
(4.5 |
%) |
Internal, sublet and other |
|
|
84,956 |
|
|
|
80,559 |
|
|
|
4,397 |
|
|
|
5.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
318,275 |
|
|
$ |
308,486 |
|
|
$ |
9,789 |
|
|
|
3.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer pay |
|
$ |
74,689 |
|
|
$ |
75,558 |
|
|
$ |
(869 |
) |
|
|
(1.2 |
%) |
Warranty |
|
|
29,457 |
|
|
|
24,269 |
|
|
|
5,188 |
|
|
|
21.4 |
% |
Wholesale parts |
|
|
8,052 |
|
|
|
7,907 |
|
|
|
145 |
|
|
|
1.8 |
% |
Internal, sublet and other |
|
|
41,809 |
|
|
|
39,145 |
|
|
|
2,664 |
|
|
|
6.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
154,007 |
|
|
$ |
146,879 |
|
|
$ |
7,128 |
|
|
|
4.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit as a % of revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer pay |
|
|
55.0 |
% |
|
|
55.4 |
% |
|
|
(40 |
) bps |
|
|
|
|
Warranty |
|
|
55.6 |
% |
|
|
54.2 |
% |
|
|
140 |
bps |
|
|
|
|
Wholesale parts |
|
|
18.1 |
% |
|
|
16.9 |
% |
|
|
120 |
bps |
|
|
|
|
Internal, sublet and other |
|
|
49.2 |
% |
|
|
48.6 |
% |
|
|
60 |
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
48.4 |
% |
|
|
47.6 |
% |
|
|
80 |
bps |
|
|
|
|
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Finance, Insurance and Other, Net (F&I)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
Better / (Worse) |
|
|
|
2015 |
|
|
2014 |
|
|
Change |
|
|
% Change |
|
|
|
(In thousands, except per unit data) |
|
Reported: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
74,600 |
|
|
$ |
69,581 |
|
|
$ |
5,019 |
|
|
|
7.2 |
% |
Gross profit per retail unit (excludes fleet) |
|
$ |
1,254 |
|
|
$ |
1,206 |
|
|
$ |
48 |
|
|
|
4.0 |
% |
|
|
|
|
|
Three Months Ended March 31, |
|
|
Better / (Worse) |
|
|
|
2015 |
|
|
2014 |
|
|
Change |
|
|
% Change |
|
|
|
(In thousands, except per unit data) |
|
Same Store: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
73,129 |
|
|
$ |
67,182 |
|
|
$ |
5,947 |
|
|
|
8.9 |
% |
Gross profit per retail unit (excludes fleet) |
|
$ |
1,260 |
|
|
$ |
1,209 |
|
|
$ |
51 |
|
|
|
4.2 |
% |
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Selling, General and Administrative (SG&A) Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
Better / (Worse) |
|
|
|
2015 |
|
|
2014 |
|
|
Change |
|
|
% Change |
|
|
|
(In thousands) |
|
Reported: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation |
|
$ |
161,858 |
|
|
$ |
157,154 |
|
|
$ |
(4,704 |
) |
|
|
(3.0 |
%) |
Advertising |
|
|
15,332 |
|
|
|
14,119 |
|
|
|
(1,213 |
) |
|
|
(8.6 |
%) |
Rent |
|
|
18,254 |
|
|
|
18,535 |
|
|
|
281 |
|
|
|
1.5 |
% |
Other |
|
|
75,418 |
|
|
|
74,165 |
|
|
|
(1,253 |
) |
|
|
(1.7 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
270,862 |
|
|
$ |
263,973 |
|
|
$ |
(6,889 |
) |
|
|
(2.6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A expenses as a % of gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation |
|
|
48.3 |
% |
|
|
47.8 |
% |
|
|
(50 |
) bps |
|
|
|
|
Advertising |
|
|
4.6 |
% |
|
|
4.3 |
% |
|
|
(30 |
) bps |
|
|
|
|
Rent |
|
|
5.4 |
% |
|
|
5.6 |
% |
|
|
20 |
bps |
|
|
|
|
Other |
|
|
22.6 |
% |
|
|
22.5 |
% |
|
|
(10 |
) bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
80.9 |
% |
|
|
80.2 |
% |
|
|
(70 |
) bps |
|
|
|
|
|
Q1 2015
EARNINGS REVIEW April 21, 2015
Exhibit 99.2 |
|
2
FORWARD-LOOKING STATEMENTS
This
presentation
contains
forward-looking
statements
within
the
meaning
of
the
Private
Securities
Litigation Reform Act of 1995. These statements relate to future events, are not
historical facts and are based on our current expectations and assumptions regarding
our business, the economy and other future conditions. These statements can
generally be identified by lead-in words such as believe, expect,
anticipate, intend, plan, foresee,
may ,will
and other similar words. Statements that describe
our Companys objectives, plans or goals are also forward-looking statements.
Examples of such forward- looking information we may be discussing in this
presentation include, without limitation, anticipated 2015 industry new vehicle sales
volume, the implementation of growth and operating strategies, including acquisitions
of dealerships and properties, the development of open points and stand-alone pre-owned
stores, the return of capital to shareholders , anticipated future success and impacts from
the implementation of our strategic initiatives and earnings per share
expectations. You are cautioned that these forward-looking statements are not
guarantees of future performance, involve risks
and
uncertainties
and
actual
results
may
differ
materially
from
those
projected
in
the
forward-looking
statements as a result of various factors. These risks and uncertainties include, among
other things, (a) economic conditions in the markets in which we operate, (b) the
success of our operational strategies, (c) our relationships with the automobile
manufacturers, (d) new and pre-owned vehicle sales volume, and (e) earnings
expectations for the year ending December 31, 2015. These risks and uncertainties, as well as
additional factors that could affect our forward-looking statements, are described in our
Form 10-K for the year ended December 31, 2014.
These forward-looking statements, risks, uncertainties and additional factors speak only
as of the date of this presentation. We undertake no obligation to update any
such statements. |
|
CONTENT
STRATEGIC FOCUS
FINANCIAL RESULTS
OPERATIONS REVIEW
SUMMARY AND OUTLOOK
3 |
|
4
STRATEGIC FOCUS
1.
Growth
One Sonic-One Experience
EchoPark
®
Acquisitions & Open Points
2.
Own Our Properties
3.
Return Capital to Shareholders |
|
STRATEGIC
FOCUS ONE SONIC-ONE EXPERIENCE (OSOE)
5
Goals
Pilot Stores Underway
36 Month Implementation
Charlotte Market Rollout in
Progress
Result -
Increase Market Share and Customer Retention
1 Associate, 1 Price, 1 Hour
Improve Transparency; Increase Trust
Operational Efficiencies |
|
6
STRATEGIC FOCUS
EchoPark
®
Hub Opened November 3
2 Neighborhood Stores
Opened in January 2015
Expect at least 1 more in 2015
and another in 2016 |
|
7
STRATEGIC FOCUS
ACQUISITIONS & OPEN POINTS
Open Points
Mercedes Benz in Dallas Market
Operational in 2016
Audi in Pensacola Market
Operational in 2016
Nissan in TN Market
Operational in late 2016 / early 2017
Exploring Acquisition and Open Point
Opportunities in Other Markets |
|
8
STRATEGIC FOCUS
OWN OUR PROPERTIES
2007
2008
2011
2012
2013
2014
Q1
2015
Proj. -
2017
0%
12%
18%
23%
31%
36%
37%
49% |
|
9
STRATEGIC FOCUS
RETURN CAPITAL TO SHAREHOLDERS
Unused Authorization of Approximately $ 68 million
Quarterly Dividend of $0.025 Per Share
Shares
(in thousands)
Average Price /
Share
$
(in millions)
2015 Activity
447
$ 24.89
$ 11.1 |
|
Q1
2015 FINANCIAL REVIEW FRANCHISE DEALERSHIPS |
|
ADJUSTED
FRANCHISED OPERATIONS B/(W) than Q1 2014
(amounts in millions, except per share data)
Q1 2015
$
%
Revenue
$ 2,220
$ 83
3.9%
Gross Profit
$ 333
$ 4
1.3%
SG&A as % of Gross
(1)
79.2%
50 bps
Operating Profit
(1)
$ 54
$ 1
2.2%
Interest & Other
$ 18
$ 1
3.4%
Pretax
(1)
$ 36
$ 2
5.2%
Diluted EPS
(1)
$ 0.43
$ .03
7.5%
12
Note
Continuing operations includes results of sold stores after March 31, 2014.
(1)
Amounts are adjusted. See appendix for reconciliation of adjusted amounts to GAAP
amounts |
|
FRANCHISED SG&A TO GROSS WALK
Q1
13
210 bps
Better than
Q1 2014 of
79.7%
(1)
Amounts are adjusted. See appendix for reconciliation of adjusted amounts to GAAP
amounts Q1 2015 Adjusted (1)
Less: OSOE
Less: Centralization
Initiatives
79.2%
(1.1%)
(0.5%)
77.6%
Q1 2015 Adj for |
|
Q1
2015 FINANCIAL REVIEW ECHOPARK
® |
|
ECHOPARK
®
Q1 RESULTS
15
B/(W) than
Q1 2014
(amounts in millions, except per share data)
Q1 2015
$
Revenue
$ 15.7
$ 15.7
Gross Profit
$ 1.8
$ 1.8
Operating Profit
(1) ($
4.8) ($ 3.1)
Interest & Other
($ 0.1)
($ 0.1)
Pre-tax Profit (Loss) (1) ($ 4.9)
($ 3.2)
Store Level (retail units)
660
n/a
Diluted EPS
(1) ($
0.06) ($0.04)
(1)
Amounts are adjusted. See appendix for reconciliation of adjusted amounts to GAAP
amounts |
|
Q1
2015 FINANCIAL REVIEW TOTAL ENTERPRISE |
|
ADJUSTED
TOTAL Q1 2015 RESULTS B/(W) than Q1 2014
(amounts in millions, except per share data)
Q1 2015
$
%
Revenue
$ 2,236
$ 99
4.6%
Gross Profit
$ 335
$ 6
1.8%
Operating Profit
(1)
$ 49
($ 2)
(3.8%)
Interest & Other
$ 18
$ 1
2.7%
Continuing Ops:
Profit (after tax)
(1)
$ 19
($ 1)
(5.9%)
Diluted EPS
(1)
$ 0.37
($ 0.01)
(2.6%)
SG&A as % of Gross
(1)
80.6%
(40 bps)
Discontinued Ops Profit/(Loss) (after tax)
($ 0.4)
$ 0.2
17
Note
Continuing operations includes results of sold stores after March 31, 2014.
(1)
Amounts are adjusted. See appendix for reconciliation of adjusted amounts to GAAP
amounts |
|
TOTAL
REVENUE & GROSS PROFIT Q1 2015 B/(W) than Q1 2014
(amounts in millions)
Q1 2015
$
%
New Retail Revenue
$ 1,190
$ 78
7.0%
Used Retail Revenue
$ 594
$ 34
6.1%
Fixed Operations Revenue
$ 323
$ 4
1.4%
F&I Revenue
$ 75
$ 5
7.2%
Total Revenue
$ 2,236
$ 99
4.6%
New Retail Gross
$ 63
($ 2)
(3.6%)
Used Retail Gross
$ 41
$ 0
0.4%
Fixed Operations Gross
$ 156
$ 4
2.8%
F&I Gross
$ 75
$ 5
7.2%
Total Gross
$ 335
$ 6
1.8%
18
(1)
Amounts are adjusted. See appendix for reconciliation of adjusted amounts to GAAP
amounts |
|
ADJUSTED
TOTAL SG&A TO GROSS 19
80.6%
80.2%
Note
2015 amounts are adjusted. See appendix for reconciliation of adjusted amounts to GAAP
amounts Q1 2015
Q1 2014
4.6%
4.3%
48.1%
47.8%
5.4%
5.6%
22.5%
22.5%
Advertising
Comp
Rent
Other |
|
ADJUSTED
AND GAAP EPS SUMMARY 20
(amounts in millions, except per share date)
Q1 2015
Q1 2014
Pre-Tax
EPS
Pre-Tax
EPS
Adjusted Franchised EPS
$35.7
$ 0.43
$ 34.0
$0.40
Adjusted EchoPark®
EPS
($4.9)
($0.06)
($ 1.7)
($ 0.02)
Adjusted Total EPS
$ 30.8
$ 0.37
$32.2
$ 0.38
Adjustments:
Impairment
($ 6.2)
($ 0.07)
$ 0.0
$ 0.0
Other
($ 1.1)
($ 0.02)
$ 0.0
$ 0.0
GAAP EPS
$ 0.28
$ 0.38 |
|
CAPITAL
SPEND (amounts in millions)
YTD Q1
2015
Estimated
2015
Real Estate & Facility Related
$ 37.2
$200.9
All Other Cap Ex
9.7
46.3
Subtotal
$ 46.9
$ 247.2
Less: Mortgage Funding
(25.6)
(87.1)
Total Cash Used
Cap Ex
$ 21.3
$ 160.1
Note
Spending excludes the effect of franchise acquisitions.
21 |
|
LIQUIDITY
(amounts in millions)
Q1 2015
Q4 2014
Cash
$4.0
$ 4.2
Revolver Availability
161.1
165.6
Used floor plan availability
21.6
22.6
Floor plan deposit balance
56.0
57.5
Total
$242.7
$ 249.9
22 |
|
DEBT
COVENANTS Covenant
Actual Q1
2015
Liquidity Ratio
>= 1.05
1.21
Fixed Charge Coverage Ratio
>= 1.20
1.64
Total Lease Adjusted Leverage
Ratio
<= 5.50
4.16
Compliant with all Covenants
23 |
|
NEW
VEHICLE RETAIL SAME STORE
Q1 2015
Q1 2014
B/(W)
Volume
30,981
28,980
6.9%
Selling Price
$ 38,028
$ 37,120
2.4%
Gross Margin %
5.3%
5.9%
(60 bps)
GPU
$ 2,018
$ 2,199
($ 182)
Gross Profit
$ 63 million
$ 64 million
(1.9%)
SAAR (includes fleet)
16.6 million
15.6 million
6.4%
25 |
|
26
Q1 2015 vs. Q1 2014
(1)
(1)
Industry includes fleet
Sonic does not
NEW VEHICLE -
BRAND
15.4%
6.9%
2.3%
6.9%
5.2%
24.8%
5.0%
15.3%
3.6%
% Sonic Unit Sales
BMW
MB
Cadillac
Ford
GM
Honda
Lexus
Toyota
Audi
9%
13%
(14%)
(3%)
(4%)
11%
19%
12%
13%
8%
7%
(6%)
2%
6%
2%
19%
9%
14%
Sonic
Industry |
|
USED
VEHICLE RETAIL SAME STORE
27
Q1 2015
Q1 2014
B/(W)
Retail Volume
27,079
26,601
1.8%
Used Retail GPU
$ 1,478
$ 1,477
$ 1
Used to New
0.87:1.00
0.92:1.00
(0.04)
Vehicles / store / month (97 stores)
93
91
2 |
|
FIXED
OPS SAME STORE
Q1 2015
B/(W) than 2014
(amounts in millions)
$
%
Revenue
$ 318
$ 10
3.2%
Gross Profit
$ 154
$ 7
4.9%
28
(5.0%)
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Customer Pay
Warranty
Wholesale Parts
Internal & Sublet
(1.2%)
21.4%
1.8%
6.8%
YOY Gross % Change |
|
30
OSOE
TOWN & COUNTRY TOYOTA
NEW RETAIL UNITS
155
140
198
156
177
246
251
182
167
182
153
200
257
100
120
140
160
180
200
220
240
260
280
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
13.2%
12.9%
14.2%
13.1%
14.6%
18.0%
20.8%
15.8%
16.0%
15.1%
15.8%
22.0%
20.5%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
22.0%
24.0%
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
MARKET SHARE |
|
31
OSOE
TOWN & COUNTRY FORD
NEW RETAIL UNITS
MARKET SHARE
135
113
138
121
108
141
108
73
93
108
100
83
121
70
80
90
100
110
120
130
140
150
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
19.5%
18.3%
17.0%
16.9%
13.9%
18.5%
17.3%
12.3%
16.0%
13.3%
15.9%
15.7%
15.2%
10.0%
15.0%
20.0%
25.0%
30.0%
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15 |
|
32
OSOE
FORT MILL FORD
NEW RETAIL UNITS
110
121
156
116
133
124
94
86
77
114
108
84
111
50
70
90
110
130
150
170
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-14
15.9%
18.5%
20.1%
16.3%
17.0%
15.4%
16.3%
14.9%
12.4%
14.5%
16.9%
14.8%
14.6%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
22.0%
24.0%
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
MARKET SHARE |
|
33
OSOE
INFINITI OF CHARLOTTE
NEW RETAIL UNITS
40.7%
51.1%
30.0%
44.4%
43.5%
46.6%
40.5%
50.6%
40.5%
31.7%
42.6%
46.8%
49.5%
30.0%
35.0%
40.0%
45.0%
50.0%
55.0%
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
37
45
30
34
31
30
36
40
30
34
30
35
53
25
30
35
40
45
50
55
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
MARKET SHARE |
|
34
OSOE
CADILLAC OF SOUTH CHARLOTTE
NEW RETAIL UNITS
47.5%
41.7%
38.7%
36.7%
40.4%
40.0%
37.1%
45.7%
32.2%
26.5%
41.3%
38.0%
38.8%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
55.0%
60.0%
Mar-14
Apr-14
May-14
Jun-14
Jul
-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
MARKET SHARE
38
40
42
32
39
46
34
39
23
39
32
28
35
20
25
30
35
40
45
50
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15 |
|
35
OSOE
NEXT STEPS
1.
We are still working on the pricing tool (in particular with Ford) we are a
few months away from completion
Drivers of the slowdown are man
hours available and new
technology
opportunities
simply
put
this
is
a
first
of
its
kind
and
we
are close to breaking the code
2.
CRM/Desk/F&I and Appraisal system is a major success in the stores all
technologies are running at 100%
3.
Operations team is requesting us to develop a two part rollout of the
technology from OSOE less the pricing (until pricing tool is 100%
operational)
Beginning in Q2 we would start the rollout of the CRM and the Desk
tool
Followed by a rollout out of the F&I and Appraisal tools (3 months
later per location)
4.
A rollout plan of the technology is under development |
|
37
EchoPark
®
Openings:
122
183
185
292
6
34
31
69
0
6
19
35
143
135
188
0
50
100
150
200
250
300
350
Dec-14
Jan-15
Feb-15
Mar-15
Unit Volume
Total
Centennial
Highlands Ranch
HUB
Hub
11/3/2014
Centennial
12/26/2015
Highlands Ranch
1/23/2015 |
|
Growth experienced in each revenue category
achieving record results
Gaining expense leverage in the franchised dealership
segment including OSOE expenses
Expect open points to drive future growth
Continued share repurchases with excess capital
Monitoring capital requirements as 2017 lease
maturities approach
SUMMARY
38 |
|
NON-GAAP RECONCILIATIONS
41
Consolidated
Franchised Dealerships
EchoPark®
Three Months Ended
Three Months Ended
Three Months Ended
March 31,
March 31,
March 31,
2015
2014
2015
2014
2015
2014
(In millions)
SG&A Reconciliation:
As Reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . 270.9
$
264.0
$
265.0
$
262.3
$
5.9
$
1.7
$
Pre-tax
Adjustments: Severance and other . . . . . . . . . . . . . . . .
. . . . . . . . . . . . (1.1)
-
(1.1)
-
-
-
Total pre-tax
adjustments . . . . . . . . . . . . . . . . . . . . .
(1.1)
-
(1.1)
-
-
-
Adjusted
SG&A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
269.8
$
264.0
$
263.9
$
262.3
$
5.9
$
1.7
$
SG&A as % of Gross
Reconciliation: As Reported . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . 80.9%
80.2%
79.5%
79.7%
NM
NM
Pre-tax Adjustments:
Severance and other . . . . . . . . . . . . . . . . . . . . . . . . . .
. . (0.3%)
0.0%
(0.3%)
0.0%
NM
NM
Total pre-tax adjustments . . . . . . . . . . . . . . . . . . . .
. (0.3%)
0.0%
(0.3%)
0.0%
NM
NM
Adjusted SG&A as % of Gross . . . . . . . . . . . . . . . . . . . .
. . 80.6%
80.2%
79.2%
79.7%
NM
NM
NM = Not meaningful
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 Companys disclosure by providing period-to-period comparability of the
Companys results from operations. |
|
42
NON-GAAP RECONCILIATIONS
Consolidated
Franchised Dealerships
EchoPark®
Three Months Ended
Three Months Ended
Three Months Ended
March 31,
March 31,
March 31,
2015
2014
2015
2014
2015
2014
(In millions)
Operating Profit Reconciliation:
As Reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . 41.5
$
50.6
$
47.7
$
52.3
$
(6.2)
$
(1.7)
$
Pre-tax Adjustments:
Severance and other . . . . . . . . . . . . . . . . . . . . . . . . . .
. . 1.1
-
1.1
-
-
-
Impairment charges . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 6.2
-
4.8
-
1.4
-
Total pre-tax
adjustments . . . . . . . . . . . . . . . . . . . . . 7.3
-
5.9
-
1.4
-
Adjusted Operating
Profit . . . . . . . . . . . . . . . . . . . . . . . . . .
48.8
$
50.6
$
53.6
$
52.3
$
(4.8)
$
(1.7)
$
Pre-tax Profit from Continuing
Operations Reconciliation: As Reported . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . 23.5
$
32.2
$
29.8
$
33.9
$
(6.3)
$
(1.7)
$
Pre-tax Adjustments:
Severance and other . . . . . . . . . . . . . . . . . . . . . . . . . .
. . 1.1
-
1.1
-
-
-
Impairment charges . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 6.2
-
4.8
-
1.4
-
Total after-tax
adjustments . . . . . . . . . . . . . . . . . . . . 7.3
-
5.9
-
1.4
-
Adjusted Profit from
Continuing Operations (after-tax) . . . 30.8
$
32.2
$
35.7
$
33.9
$
(4.9)
$
(1.7)
$
Profit from Continuing Operations
(after-tax) Reconciliation: As Reported . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . 14.4
$
20.0
$
After-tax Adjustments:
Severance and other . . . . . . . . . . . . . . . . . . . . . . . . . .
. . 0.6
-
Impairment charges . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 3.8
-
Total after-tax
adjustments . . . . . . . . . . . . . . . . . . . . 4.4
-
Adjusted Profit from
Continuing Operations (after-tax) . . . 18.8
$
20.0
$
|
|
NON-GAAP RECONCILIATIONS
43
Three Months Ended March 31, 2015
Income (Loss)
Income (Loss)
From Continuing
From Discontinued
Operations
Average
Net Income (Loss)
Weighted
Per
Per
Per
Average
Share
Share
Share
Shares
Amount
Amount
Amount
Amount
Amount
Amount
(In millions, except per share amounts)
Reported:
Earnings (loss) and shares . . . . . . . . . . . . . . .
50.9
14.4
$
(0.4)
$
14.0
$
Effect of participating securities:
Non-vested restricted stock
and stock units . . . . . . . . . . . . . . . . . . . .
-
-
-
Basic earnings (loss) and
shares . . . . . . . . . . 50.9
14.4
$
0.28
$
(0.4)
$
(0.01)
$
14.0
$
0.27
$
Effect of dilutive securities:
Stock compensation plans . . . . . . . . . . . . .
0.5
Diluted earnings (loss) and shares . . . . .
. . . . 51.4
14.4
$
0.28
$
(0.4)
$
(0.01)
$
14.0
$
0.27
$
Adjustments (net of tax):
Impairment charges . . . . . . . . . . . . . . . . . . . .
3.8
$
0.07
$
-
$
-
$
3.8
$
0.07
$
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.6
0.02
-
-
0.6
0.02
Total adjustments . . . . . . . . . . . . . . . . . . .
4.4
$
0.09
$
-
$
-
$
4.4
$
0.09
$
Adjusted:
Earnings (loss) and
Diluted earnings (loss) per share (1) . . . . .
18.8
$
0.37
$
(0.4)
$
(0.01)
$
18.4
$
0.36
$
(1) Expenses attributable to the EchoPark® initiative were $0.06
per fully diluted share in the three months ended March 31, 2015. |
|
44
NON-GAAP RECONCILIATIONS
Three Months Ended March 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 millions, except per share amounts)
Reported:
Earnings (loss) and shares . . . . . . . . . . . . . . .
52.4
20.0
$
(0.6)
$
19.4
$
Effect of participating securities:
Non-vested restricted stock
and stock units . . . . . . . . . . . . . . . . . . . .
(0.1)
-
(0.1)
Basic earnings (loss) and shares . . . . . . . . . .
52.4
19.9
$
0.38
$
(0.6)
$
(0.01)
$
19.3
$
0.37
$
Effect of dilutive securities:
Stock compensation plans . . . . . . . . . . . . .
0.5
Diluted earnings (loss) and shares (2).
. . . . . 52.9
19.9
$
0.38
$
(0.6)
$
(0.02)
$
19.3
$
0.36
$
(2) Expenses attributable to the EchoPark® initiative were $0.02
per fully diluted share in the three months ended March 31, 2014. |
Exhibit 99.3
FOR IMMEDIATE RELEASE
SONIC AUTOMOTIVE, INC. DECLARES QUARTERLY CASH DIVIDEND
CHARLOTTE, N.C. April 21, 2015 Sonic Automotive, Inc. (NYSE: SAH), a leader in automotive retailing, today announced that its
Board of Directors approved a quarterly dividend of $0.025 per share payable in cash for stockholders of record on June 15, 2015. The dividend will be payable on July 15, 2015.
Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, N.C., is one of the nations largest automotive retailers. Sonic can be reached on the
web at www.sonicautomotive.com.
Included herein is a forward-looking statement pertaining to an anticipated cash dividend to shareholders. There are many
factors that affect managements views about future events and trends of the Companys business. These factors involve risk and uncertainties that could cause actual results or trends to differ materially from managements view,
including without limitation, economic conditions in the markets in which we operate, new and used vehicle sales volume, the success of our operational strategies and the risk factors described in the Companys 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.
###
Contact: |
Heath Byrd, Chief Financial Officer (704) 566-2400 |
|
C.G. Saffer, Vice President and Chief Accounting Officer (704) 566-2439 |
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