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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Sonic Automotive Inc | NYSE:SAH | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.68 | 1.22% | 56.60 | 56.78 | 55.8411 | 56.34 | 102,413 | 01:00:00 |
EchoPark Segment Achieved All-Time Record Quarterly Adjusted EBITDA* in the First Quarter of 2024, Exceeding Previously Stated Target of Breakeven Adjusted EBITDA* in the First Quarter
Sonic Automotive, Inc. (“Sonic Automotive,” “Sonic,” the “Company,” "we," "us" or "our") (NYSE:SAH), one of the nation’s largest automotive retailers, today reported financial results for the first quarter ended March 31, 2024.
First Quarter 2024 Financial Summary
* Represents a non-GAAP financial measure - please refer to the discussion and reconciliation of non-GAAP financial measures below.
Commentary
David Smith, Chairman and Chief Executive Officer of Sonic Automotive, stated, “We are proud of our team’s performance in the first quarter, with our diversified business model and commitment to returning capital to stockholders driving year-over-year growth in adjusted earnings per share* despite the continued normalization of new vehicle margins in our franchised dealerships segment. During the quarter, our EchoPark Segment results exceeded our previously communicated target for breakeven adjusted EBITDA*, and we are excited to report all-time record quarterly EchoPark Segment adjusted EBITDA* for the first quarter. We remain confident that we have the right strategy, the right people, and the right culture to continue to grow our diversified business and create long-term value for our stakeholders.”
Jeff Dyke, President of Sonic Automotive, commented, “Our EchoPark results in the first quarter demonstrate our team's valuable industry experience and the adaptability of our innovative EchoPark model, and validate the difficult decisions we made to right-size our EchoPark footprint over the last several quarters. Based on recent trends and our outlook for gradual improvement in the used vehicle market going forward, we remain confident in our ability to maintain positive quarterly EchoPark Segment adjusted EBITDA* for the remainder of 2024, driving significant year-over-year improvement in the EchoPark Segment to help mitigate the continuing effects of margin normalization in our Franchised Dealerships Segment.”
Heath Byrd, Chief Financial Officer of Sonic Automotive, added, “Our diversified cash flow streams continued to benefit our overall financial position in the first quarter. As of March 31, 2024, we had $847 million of total liquidity, including $335 million in cash and floor plan deposits on hand. We believe we remain well-positioned to adapt to evolving market conditions and position the Company for success in 2024 and beyond.”
First Quarter 2024 Segment Highlights
The financial measures discussed below are results for the first quarter of 2024 with comparisons made to the first quarter of 2023, unless otherwise noted.
* Represents a non-GAAP financial measure - please refer to the discussion and reconciliation of non-GAAP financial measures below.
Dividend
Sonic’s Board of Directors approved a quarterly cash dividend of $0.30 per share, payable on July 15, 2024 to all stockholders of record on June 14, 2024.
First Quarter 2024 Earnings Conference Call
Senior management will hold a conference call today at 11:00 A.M. (Eastern). Investor presentation and earnings press release materials will be accessible beginning prior to the conference call on the Company’s website at ir.sonicautomotive.com.
To access the live webcast of the conference call, please go to ir.sonicautomotive.com and select the webcast link at the top of the page. For telephone access to this conference call, please dial (877) 407-8289 (domestic) or +1 (201) 689-8341 (international) and ask to be connected to the Sonic Automotive First Quarter 2024 Earnings Conference Call. Dial-in access remains available throughout the live call; however, to ensure you are connected for the full call we suggest dialing in at least 10 minutes before the start of the call. A webcast replay will be available following the call for 14 days at ir.sonicautomotive.com.
About Sonic Automotive
Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, North Carolina, is on a quest to become the most valuable diversified automotive retail and service brand in America. Our Company culture thrives on creating, innovating, and providing industry-leading guest experiences, driven by strategic investments in technology, teammates, and ideas that ultimately fulfill ownership dreams, enrich lives, and deliver happiness to our guests and teammates. As one of the largest automotive and powersports retailers in America, we are committed to delivering on this goal while pursuing expansive growth and taking progressive measures to be the leader in these categories. Our new platforms, programs, and people are set to drive the next generation of automotive and powersports experiences. More information about Sonic Automotive can be found at www.sonicautomotive.com and ir.sonicautomotive.com.
About EchoPark Automotive
EchoPark Automotive is one of the most comprehensive retailers of nearly new pre-owned vehicles in America today. Our unique business model offers a best-in-class shopping and utilizes one of the most innovative technology-enabled sales strategies in our industry. Our approach provides a personalized and proven guest-centric buying process that consistently delivers award-winning guest experiences and superior value to car buyers nationwide, with savings of up to $3,000 versus the competition. Consumers have responded by putting EchoPark among the top national pre-owned vehicle retailers in products, sales, and service, while receiving the 2023 Consumer Satisfaction Award from DealerRater. EchoPark’s mission is in the name: Every Car, Happy Owner. This drives the experience for guests and differentiates EchoPark from the competition. More information about EchoPark Automotive can be found at www.echopark.com.
Forward-Looking Statements
Included herein are forward-looking statements, including statements regarding anticipated future EchoPark profitability and anticipated future EchoPark adjusted EBITDA. 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, supply chain disruptions and manufacturing delays, labor shortages, the impacts of inflation and increases in interest rates, new and used vehicle industry sales volume, future levels of consumer demand for new and used vehicles, anticipated future growth in each of our operating segments, the success of our operational strategies, the rate and timing of overall economic expansion or contraction, the integration of recent or future acquisitions, and the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and other reports and information filed with the United States Securities and Exchange Commission (the “SEC”). 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 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, adjusted earnings per diluted share, adjusted SG&A expenses as a percentage of gross profit, adjusted segment income, and adjusted EBITDA. As required by SEC rules, the Company has provided reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures in the schedules included in this press release. The Company believes that these non-GAAP financial measures improve the transparency of the Company’s disclosures and provide a meaningful presentation of the Company’s results.
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Results of Operations - Consolidated
Three Months Ended March 31,
Better / (Worse)
2024
2023
% Change
(In millions, except per share amounts)
Revenues:
Retail new vehicles
$
1,455.8
$
1,442.8
1
%
Fleet new vehicles
19.6
18.8
4
%
Total new vehicles
1,475.4
1,461.6
1
%
Used vehicles
1,215.6
1,344.9
(10
)%
Wholesale vehicles
77.3
85.6
(10
)%
Total vehicles
2,768.3
2,892.1
(4
)%
Parts, service and collision repair
446.7
430.5
4
%
Finance, insurance and other, net
169.0
168.6
—
%
Total revenues
3,384.0
3,491.2
(3
)%
Cost of sales:
Retail new vehicles
(1,359.4
)
(1,304.7
)
(4
)%
Fleet new vehicles
(18.9
)
(17.9
)
(6
)%
Total new vehicles
(1,378.3
)
(1,322.6
)
(4
)%
Used vehicles
(1,168.6
)
(1,314.9
)
11
%
Wholesale vehicles
(78.1
)
(82.6
)
5
%
Total vehicles
(2,625.0
)
(2,720.1
)
3
%
Parts, service and collision repair
(222.8
)
(217.6
)
(2
)%
Total cost of sales
(2,847.8
)
(2,937.7
)
3
%
Gross profit
536.2
553.5
(3
)%
Selling, general and administrative expenses
(392.2
)
(412.8
)
5
%
Impairment charges
(1.0
)
—
(100
)%
Depreciation and amortization
(36.3
)
(34.3
)
(6
)%
Operating income (loss)
106.7
106.4
—
%
Other income (expense):
Interest expense, floor plan
(20.3
)
(14.6
)
(39
)%
Interest expense, other, net
(29.0
)
(28.4
)
(2
)%
Other income (expense), net
0.1
0.2
(50
)%
Total other income (expense)
(49.2
)
(42.8
)
(15
)%
Income (loss) before taxes
57.5
63.6
(10
)%
Provision for income taxes - benefit (expense)
(15.5
)
(15.9
)
3
%
Net income (loss)
$
42.0
$
47.7
(12
)%
Basic earnings (loss) per common share
$
1.24
$
1.33
(7
)%
Basic weighted-average common shares outstanding
34.0
35.9
5
%
Diluted earnings (loss) per common share
$
1.20
$
1.29
(7
)%
Diluted weighted-average common shares outstanding
34.9
36.9
5
%
Dividends declared per common share
$
0.30
$
0.28
7
%
Franchised Dealerships Segment - Reported
Three Months Ended March 31,
Better / (Worse)
2024
2023
% Change
(In millions, except unit and per unit data)
Revenues:
Retail new vehicles
$
1,439.9
$
1,421.0
1
%
Fleet new vehicles
19.6
18.8
4
%
Total new vehicles
1,459.5
1,439.8
1
%
Used vehicles
729.3
767.6
(5
)%
Wholesale vehicles
48.6
58.4
(17
)%
Total vehicles
2,237.4
2,265.8
(1
)%
Parts, service and collision repair
439.9
423.8
4
%
Finance, insurance and other, net
119.6
117.1
2
%
Total revenues
2,796.9
2,806.7
—
%
Gross Profit:
Retail new vehicles
94.1
134.0
(30
)%
Fleet new vehicles
0.7
0.9
(22
)%
Total new vehicles
94.8
134.9
(30
)%
Used vehicles
40.8
40.8
—
%
Wholesale vehicles
(0.2
)
1.9
(111
)%
Total vehicles
135.4
177.6
(24
)%
Parts, service and collision repair
220.8
209.6
5
%
Finance, insurance and other, net
119.6
117.1
2
%
Total gross profit
475.8
504.3
(6
)%
Selling, general and administrative expenses
(338.5
)
(331.2
)
(2
)%
Impairment charges
(1.0
)
—
(100
)%
Depreciation and amortization
(29.8
)
(26.5
)
(12
)%
Operating income (loss)
106.5
146.6
(27
)%
Other income (expense):
Interest expense, floor plan
(16.0
)
(9.9
)
(62
)%
Interest expense, other, net
(27.8
)
(26.9
)
(3
)%
Other income (expense), net
—
—
—
%
Total other income (expense)
(43.8
)
(36.8
)
(19
)%
Income (loss) before taxes
62.7
109.8
(43
)%
Add: Impairment charges
1.0
—
100
%
Segment income (loss)
$
63.7
$
109.8
(42
)%
Unit Sales Volume:
Retail new vehicles
25,297
24,539
3
%
Fleet new vehicles
379
441
(14
)%
Total new vehicles
25,676
24,980
3
%
Used vehicles
25,666
25,107
2
%
Wholesale vehicles
5,105
5,483
(7
)%
Retail new & used vehicles
50,963
49,646
3
%
Used-to-New Ratio
1.01
1.02
(1
)%
Gross Profit Per Unit:
Retail new vehicles
$
3,722
$
5,463
(32
)%
Fleet new vehicles
$
1,706
$
2,020
(16
)%
New vehicles
$
3,692
$
5,402
(32
)%
Used vehicles
$
1,592
$
1,626
(2
)%
Finance, insurance and other, net
$
2,348
$
2,360
(1
)%
Note: Reported Franchised Dealerships Segment results include (i) same store results from the “Franchised Dealerships Segment - Same Store” table below and (ii) the effects of acquisitions, open points, dispositions and holding company impacts for the periods reported. All currently operating franchised dealership stores are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition.
Franchised Dealerships Segment - Same Store
Three Months Ended March 31,
Better / (Worse)
2024
2023
% Change
(In millions, except unit and per unit data)
Revenues:
Retail new vehicles
$
1,435.5
$
1,398.8
3
%
Fleet new vehicles
19.6
18.9
4
%
Total new vehicles
1,455.1
1,417.7
3
%
Used vehicles
726.0
753.9
(4
)%
Wholesale vehicles
48.4
57.6
(16
)%
Total vehicles
2,229.5
2,229.2
—
%
Parts, service and collision repair
438.6
417.8
5
%
Finance, insurance and other, net
119.3
115.3
3
%
Total revenues
2,787.4
2,762.3
1
%
Gross Profit:
Retail new vehicles
93.7
132.3
(29
)%
Fleet new vehicles
0.7
0.9
(22
)%
Total new vehicles
94.4
133.2
(29
)%
Used vehicles
40.5
40.1
1
%
Wholesale vehicles
(0.2
)
1.8
(111
)%
Total vehicles
134.7
175.1
(23
)%
Parts, service and collision repair
219.6
206.3
6
%
Finance, insurance and other, net
119.3
115.3
3
%
Total gross profit
$
473.6
$
496.7
(5
)%
Unit Sales Volume:
Retail new vehicles
25,225
24,053
5
%
Fleet new vehicles
379
441
(14
)%
Total new vehicles
25,604
24,494
5
%
Used vehicles
25,552
24,601
4
%
Wholesale vehicles
5,094
5,389
(5
)%
Retail new & used vehicles
50,777
48,654
4
%
Used-to-New Ratio
1.01
1.02
(1
)%
Gross Profit Per Unit:
Retail new vehicles
$
3,716
$
5,499
(32
)%
Fleet new vehicles
$
1,706
$
2,020
(16
)%
New vehicles
$
3,686
$
5,437
(32
)%
Used vehicles
$
1,585
$
1,631
(3
)%
Finance, insurance and other, net
$
2,350
$
2,370
(1
)%
Note: All currently operating franchised dealership stores are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition.
EchoPark Segment - Reported
Three Months Ended March 31,
Better / (Worse)
2024
2023
% Change
(In millions, except unit and per unit data)
Revenues:
Retail new vehicles
$
—
$
1.0
(100
)%
Used vehicles
482.9
572.5
(16
)%
Wholesale vehicles
28.6
27.0
6
%
Total vehicles
511.5
600.5
(15
)%
Finance, insurance and other, net
47.9
50.0
(4
)%
Total revenues
559.4
650.5
(14
)%
Gross Profit:
Retail new vehicles
—
0.1
(100
)%
Used vehicles
5.3
(11.8
)
145
%
Wholesale vehicles
(0.6
)
1.1
(155
)%
Total vehicles
4.7
(10.6
)
144
%
Finance, insurance and other, net
47.9
50.0
(4
)%
Total gross profit
52.6
39.4
34
%
Selling, general and administrative expenses
(45.6
)
(73.8
)
38
%
Impairment charges
—
—
—
%
Depreciation and amortization
(5.5
)
(7.0
)
21
%
Operating income (loss)
1.5
(41.4
)
104
%
Other income (expense):
Interest expense, floor plan
(3.8
)
(4.6
)
17
%
Interest expense, other, net
(0.7
)
(0.9
)
22
%
Other income (expense), net
0.1
0.1
—
%
Total other income (expense)
(4.4
)
(5.4
)
19
%
Income (loss) before taxes
(2.9
)
(46.8
)
94
%
Add: Impairment charges
—
—
—
%
Segment income (loss)
$
(2.9
)
$
(46.8
)
94
%
Unit Sales Volume:
Retail new vehicles
—
11
(100
)%
Used vehicles
17,981
19,980
(10
)%
Wholesale vehicles
2,994
2,916
3
%
Gross Profit Per Unit:
Total used vehicle and F&I
$
2,955
$
1,906
55
%
EchoPark Segment - Same Market
Three Months Ended March 31,
Better / (Worse)
2024
2023
% Change
(In millions, except unit and per unit data)
Revenues:
Used vehicles
$
473.2
$
433.7
9
%
Wholesale vehicles
25.5
17.9
42
%
Total vehicles
498.7
451.6
10
%
Finance, insurance and other, net
47.5
38.3
24
%
Total revenues
546.2
489.9
11
%
Gross Profit:
Used vehicles
5.6
(9.8
)
157
%
Wholesale vehicles
0.1
1.2
(92
)%
Total vehicles
5.7
(8.6
)
166
%
Finance, insurance and other, net
47.5
38.3
24
%
Total gross profit
$
53.2
$
29.7
79
%
Unit Sales Volume:
Used vehicles
17,618
15,551
13
%
Wholesale vehicles
2,785
2,119
31
%
Gross Profit Per Unit:
Total used vehicle and F&I
$
3,018
$
1,833
65
%
Note: All currently operating EchoPark stores in a local geographic market are included within the same market group as of the first full month following the first anniversary of the market's opening.
Powersports Segment - Reported
Three Months Ended March 31,
Better / (Worse)
2024
2023
% Change
(In millions, except unit and per unit data)
Revenues:
Retail new vehicles
$
15.9
$
20.8
(24
)%
Used vehicles
3.4
4.8
(29
)%
Wholesale vehicles
0.1
0.2
(50
)%
Total vehicles
19.4
25.8
(25
)%
Parts, service and collision repair
6.8
6.7
1
%
Finance, insurance and other, net
1.5
1.5
—
%
Total revenues
27.7
34.0
(19
)%
Gross Profit:
Retail new vehicles
2.3
4.0
(43
)%
Used vehicles
0.9
1.0
(10
)%
Wholesale vehicles
—
—
—
%
Total vehicles
3.2
5.0
(36
)%
Parts, service and collision repair
3.1
3.3
(6
)%
Finance, insurance and other, net
1.5
1.5
—
%
Total gross profit
7.8
9.8
(20
)%
Selling, general and administrative expenses
(8.1
)
(7.8
)
(4
)%
Depreciation and amortization
(1.0
)
(0.8
)
(25
)%
Operating income (loss)
(1.3
)
1.2
(208
)%
Other income (expense):
Interest expense, floor plan
(0.5
)
(0.1
)
(400
)%
Interest expense, other, net
(0.5
)
(0.6
)
17
%
Other income (expense), net
—
0.1
(100
)%
Total other income (expense)
(1.0
)
(0.6
)
(67
)%
Income (loss) before taxes
(2.3
)
0.6
(483
)%
Add: Impairment charges
—
—
—
%
Segment income (loss)
$
(2.3
)
$
0.6
(483
)%
Unit Sales Volume:
Retail new vehicles
845
1,107
(24
)%
Used vehicles
409
444
(8
)%
Wholesale vehicles
13
7
86
%
Gross Profit Per Unit:
Retail new vehicles
$
2,676
$
3,573
(25
)%
Used vehicles
$
2,185
$
2,328
(6
)%
Finance, insurance and other, net
$
1,197
$
980
22
%
Powersports Segment - Same Store
Three Months Ended March 31,
Better / (Worse)
2024
2023
% Change
(In millions, except unit and per unit data)
Revenues:
Retail new vehicles
$
15.3
$
20.6
(26
)%
Used vehicles
2.7
4.3
(37
)%
Wholesale vehicles
0.3
0.1
200
%
Total vehicles
18.3
25.0
(27
)%
Parts, service and collision repair
6.1
6.4
(5
)%
Finance, insurance and other, net
1.4
1.5
(7
)%
Total revenues
25.8
32.9
(22
)%
Gross Profit:
Retail new vehicles
2.1
3.9
(46
)%
Used vehicles
0.7
0.9
(22
)%
Wholesale vehicles
0.1
(0.1
)
200
%
Total vehicles
2.9
4.7
(38
)%
Parts, service and collision repair
2.8
3.2
(13
)%
Finance, insurance and other, net
1.4
1.5
(7
)%
Total gross profit
$
7.1
$
9.4
(24
)%
Unit Sales Volume:
Retail new vehicles
828
1,100
(25
)%
Used vehicles
336
401
(16
)%
Wholesale vehicles
10
6
67
%
Retail new & used vehicles
1,164
1,501
(22
)%
Used-to-New Ratio
0.41
0.36
14
%
Gross Profit Per Unit:
Retail new vehicles
$
2,553
$
3,549
(28
)%
Used vehicles
$
2,202
$
2,274
(3
)%
Finance, insurance and other, net
$
1,225
$
981
25
%
Note: All currently operating powersports stores are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition.
Non-GAAP Reconciliation - Consolidated - SG&A Expenses
Three Months Ended March 31,
Better / (Worse)
2024
2023
Change
% Change
(In millions)
Reported:
Compensation
$
247.3
$
258.8
$
11.5
4
%
Advertising
22.3
26.1
3.8
15
%
Rent
9.3
11.3
2.0
18
%
Other
113.3
116.6
3.3
3
%
Total SG&A expenses
$
392.2
$
412.8
$
20.6
5
%
Adjustments:
Closed store accrued expenses
$
(2.1
)
$
—
Severance and long-term compensation charges
(4.3
)
(2.0
)
Total SG&A adjustments
$
(6.4
)
$
(2.0
)
Adjusted:
Total adjusted SG&A expenses
$
385.8
$
410.8
$
25.0
6
%
Reported:
SG&A expenses as a % of gross profit:
Compensation
46.1
%
46.7
%
60
bps
Advertising
4.2
%
4.7
%
50
bps
Rent
1.7
%
2.0
%
30
bps
Other
21.1
%
21.2
%
10
bps
Total SG&A expenses as a % of gross profit
73.1
%
74.6
%
150
bps
Adjustments:
Closed store accrued expenses
(0.4
)%
—
%
Severance and long-term compensation charges
(0.7
)%
(0.4
)%
Total effect of adjustments
(1.1
)%
(0.4
)%
Adjusted:
Total adjusted SG&A expenses as a % of gross profit
72.0
%
74.2
%
220
bps
Non-GAAP Reconciliation - Franchised Dealerships Segment - SG&A Expenses
Three Months Ended March 31,
Better / (Worse)
2024
2023
Change
% Change
(In millions)
Reported:
Compensation
$
216.5
$
213.8
$
(2.7
)
(1
)%
Advertising
15.3
9.9
(5.4
)
(55
)%
Rent
10.1
10.2
0.1
1
%
Other
96.6
97.3
0.7
1
%
Total SG&A expenses
$
338.5
$
331.2
$
(7.3
)
(2
)%
Adjustments:
Long-term compensation charges
$
(2.2
)
$
—
Total SG&A adjustments
$
(2.2
)
$
—
Adjusted:
Total adjusted SG&A expenses
$
336.3
$
331.2
$
(5.1
)
(2
)%
Reported:
SG&A expenses as a % of gross profit:
Compensation
45.5
%
42.4
%
(310
)
bps
Advertising
3.2
%
2.0
%
(120
)
bps
Rent
2.1
%
2.0
%
(10
)
bps
Other
20.3
%
19.3
%
(100
)
bps
Total SG&A expenses as a % of gross profit
71.1
%
65.7
%
(540
)
bps
Adjustments:
Long-term compensation charges
(0.4
)%
—
%
Total effect of adjustments
(0.4
)%
—
%
Adjusted:
Total adjusted SG&A expenses as a % of gross profit
70.7
%
65.7
%
(500
)
bps
Non-GAAP Reconciliation - EchoPark Segment - SG&A Expenses
Three Months Ended March 31,
Better / (Worse)
2024
2023
Change
% Change
(In millions)
Reported:
Compensation
$
25.2
$
39.7
$
14.5
37
%
Advertising
6.6
15.8
9.2
58
%
Rent
(0.8
)
1.1
1.9
173
%
Other
14.6
17.2
2.6
15
%
Total SG&A expenses
$
45.6
$
73.8
$
28.2
38
%
Adjustments:
Closed store accrued expenses
$
(2.1
)
$
—
Severance and long-term compensation charges
(2.1
)
(2.0
)
Total SG&A adjustments
$
(4.2
)
$
(2.0
)
Adjusted:
Total adjusted SG&A expenses
$
41.4
$
71.8
$
30.4
42
%
Reported:
SG&A expenses as a % of gross profit:
Compensation
47.8
%
100.6
%
5,280
bps
Advertising
12.6
%
40.0
%
2,740
bps
Rent
(1.4
)%
2.7
%
410
bps
Other
27.6
%
43.9
%
1,630
bps
Total SG&A expenses as a % of gross profit
86.6
%
187.2
%
10,060
bps
Adjustments:
Closed store accrued expenses
(4.0
)%
—
%
Severance and long-term compensation charges
(4.0
)%
(5.1
)%
Total effect of adjustments
(8.0
)%
(5.1
)%
Adjusted:
Total adjusted SG&A expenses as a % of gross profit
78.6
%
182.1
%
10,350
bps
Non-GAAP Reconciliation - Powersports Segment - SG&A Expenses
Three Months Ended March 31,
Better / (Worse)
2024
2023
Change
% Change
(In millions)
Reported:
Compensation
$
5.6
$
5.3
$
(0.3
)
(6
)%
Advertising
0.4
0.4
—
—
%
Rent
—
—
—
—
%
Other
2.1
2.1
—
—
%
Total SG&A expenses
$
8.1
$
7.8
$
(0.3
)
(4
)%
Reported:
SG&A expenses as a % of gross profit:
Compensation
72.7
%
53.9
%
(1,880
)
bps
Advertising
5.1
%
4.2
%
(90
)
bps
Rent
0.4
%
0.4
%
—
bps
Other
26.6
%
21.6
%
(500
)
bps
Total SG&A expenses as a % of gross profit
104.8
%
80.1
%
(2,470
)
bps
Non-GAAP Reconciliation - Franchised Dealerships Segment - Income (Loss) Before Taxes and Segment Income (Loss)
Three Months Ended March 31,
2024
2023
% Change
(In millions)
Reported:
Income (loss) before taxes
$
62.7
$
109.8
(43
)%
Add: Impairment charges
1.0
—
Segment income (loss)
$
63.7
$
109.8
(42
)%
Adjustments:
Long-term compensation charges
$
2.2
$
—
Total pre-tax adjustments
$
2.2
$
—
Adjusted:
Segment income (loss)
$
65.9
$
109.8
(40
)%
Non-GAAP Reconciliation - EchoPark Segment - Income (Loss) Before Taxes and Segment Income (Loss)
Three Months Ended March 31,
2024
2023
% Change
(In millions)
Reported:
Income (loss) before taxes
$
(2.9
)
$
(46.8
)
94
%
Add: Impairment charges
—
—
Segment income (loss)
$
(2.9
)
$
(46.8
)
94
%
Adjustments:
Closed store accrued expenses
$
2.1
$
—
Severance and long-term compensation charges
2.1
2.0
Total pre-tax adjustments
$
4.2
$
2.0
Adjusted:
Segment income (loss)
$
1.3
$
(44.8
)
103
%
Non-GAAP Reconciliation - Powersports Segment - Income (Loss) Before Taxes and Segment Income (Loss)
Three Months Ended March 31,
2024
2023
% Change
(In millions)
Reported:
Income (loss) before taxes
$
(2.3
)
$
0.6
(483
)%
Add: Impairment charges
—
—
Segment income (loss)
$
(2.3
)
$
0.6
(483
)%
Non-GAAP Reconciliation - Consolidated - Net Income (Loss) and Diluted Earnings (Loss) Per Share
Three Months Ended March 31, 2024
Three Months Ended March 31, 2023
Weighted- Average Shares
Net Income (Loss)
Per Share Amount
Weighted- Average Shares
Net Income (Loss)
Per Share Amount
(In millions, except per share amounts)
Reported net income (loss), diluted shares, and diluted earnings (loss) per share
34.9
$
42.0
$
1.20
36.9
$
47.7
$
1.29
Adjustments:
Closed store accrued expenses
$
2.1
$
—
Impairment charges
1.0
—
Severance and long-term compensation charges
4.3
2.0
Total pre-tax items of interest
$
7.4
$
2.0
Tax effect of above items
(1.9
)
(0.5
)
Adjusted net income (loss), diluted shares, and diluted earnings (loss) per share
34.9
$
47.5
$
1.36
36.9
$
49.2
$
1.33
Non-GAAP Reconciliation - Adjusted EBITDA
Three Months Ended March 31, 2024
Three Months Ended March 31, 2023
Franchised Dealerships Segment
EchoPark Segment
Powersports Segment
Total
Franchised Dealerships Segment
EchoPark Segment
Powersports Segment
Total
(In millions)
Net income (loss)
$
42.0
$
47.7
Provision for income taxes
15.5
15.9
Income (loss) before taxes
$
62.7
$
(2.9
)
$
(2.3
)
$
57.5
$
109.8
$
(46.8
)
$
0.6
$
63.6
Non-floor plan interest (1)
26.3
0.6
0.5
27.4
25.4
0.9
0.6
26.9
Depreciation and amortization (2)
31.5
5.4
1.0
37.9
28.2
7.0
0.7
35.9
Stock-based compensation expense
4.4
—
—
4.4
5.0
—
—
5.0
Impairment charges
1.0
—
—
1.0
—
—
—
—
Severance and long-term compensation charges
2.2
2.1
—
4.3
—
2.0
—
2.0
Closed store accrued expenses
$
—
$
2.1
$
—
$
2.1
$
—
$
—
$
—
$
—
Adjusted EBITDA
$
128.1
$
7.3
$
(0.8
)
$
134.6
$
168.4
$
(36.9
)
$
1.9
$
133.4
(1)
Includes interest expense, other, net in the accompanying consolidated statements of operations, net of any amortization of debt issuance costs or net debt discount/premium included in (2) below.
(2)
Includes the following line items from the accompanying consolidated statements of cash flows: depreciation and amortization of property and equipment; debt issuance cost amortization; and debt discount amortization, net of premium amortization.
Non-GAAP Reconciliation - EchoPark Segment Operations and Closed Stores
Three Months Ended March 31, 2024
Three Months Ended March 31, 2023
Better / (Worse) % Change
EchoPark Operations
Closed Stores
Total EchoPark Segment
EchoPark Operations
Closed Stores
Total EchoPark Segment
EchoPark Operations
Closed Stores
Total EchoPark Segment
(In millions, except unit and per unit data)
Total revenues
$
546.2
$
13.2
$
559.4
$
489.9
$
160.6
$
650.5
11
%
(92
)%
(14
)%
Total gross profit
$
53.2
$
(0.6
)
$
52.6
$
29.7
$
9.7
$
39.4
79
%
(106
)%
34
%
Income (loss) before taxes
$
2.9
$
(5.8
)
$
(2.9
)
$
(28.0
)
$
(18.8
)
$
(46.8
)
110
%
69
%
94
%
Non-floor plan interest (1)
0.6
—
0.6
0.5
0.4
0.9
NM
NM
NM
Depreciation and amortization (2)
5.4
—
5.4
5.3
1.7
7.0
NM
NM
NM
Severance and long-term compensation charges
0.5
1.6
2.1
—
2.0
2.0
NM
NM
NM
Closed store accrued expenses
—
2.1
2.1
—
—
—
NM
NM
NM
Adjusted EBITDA
$
9.4
$
(2.1
)
$
7.3
$
(22.2
)
$
(14.7
)
$
(36.9
)
142
%
86
%
120
%
Used vehicle unit sales volume
17,618
363
17,981
15,551
4,429
19,980
13
%
(92
)%
(10
)%
Total used vehicle and F&I gross profit per unit
$
3,018
$
314
$
2,955
$
1,833
$
2,290
$
1,906
65
%
(86
)%
55
%
NM = Not Meaningful
(1)
Includes interest expense, other, net in the accompanying consolidated statements of operations, net of any amortization of debt issuance costs or net debt discount/premium included in (2) below.
(2)
Includes the following line items from the accompanying consolidated statements of cash flows: depreciation and amortization of property and equipment; debt issuance cost amortization; and debt discount amortization, net of premium amortization.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240425129250/en/
Investor Inquiries: Heath Byrd, Executive Vice President and Chief Financial Officer Danny Wieland, Vice President, Investor Relations & Financial Reporting ir@sonicautomotive.com
Press Inquiries: Sonic Automotive Media Relations media.relations@sonicautomotive.com
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