Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - SONIC AUTOMOTIVE INC | d338412d8k.htm |
| EX-99.1 - PRESS RELEASE OF SONIC AUTOMOTIVE, INC. - SONIC AUTOMOTIVE INC | d338412dex991.htm |
| EX-99.3 - PRESS RELEASE OF SONIC AUTOMOTIVE, INC. - SONIC AUTOMOTIVE INC | d338412dex993.htm |
 Sonic Automotive, Inc.
1
Q1 2012 Earnings Review
April 23, 2012
Exhibit 99.2 |
 Sonic Automotive, Inc.
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 Company’s 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,
further
implementation
of
our
operational
strategies
and
playbooks, future debt retirement, capital expenditures, operating margins and
revenues, inventory levels and new vehicle industry sales volume.
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 and (d) new and
pre-owned vehicle sales volume. 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 ending December 31, 2011.
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. |
 Sonic Automotive, Inc.
3
Sonic Automotive Q1 2012
o
Quarter in Review
o
Financial Results
o
Operations Recap
o
Summary and Outlook |
 Sonic Automotive, Inc.
4
Overall Results
Record
Revenue
Growth
–
up
9.3%
New
retail
vehicle
revenue
up
12.1%
-
volume
up
11.2%
-
exceeds industry retail volume growth
Pre-owned revenue up 9.0%
F&I revenue up 20.7%
Fixed Operations revenue up 5.1%
SG&A to gross declined to 79.4%
Income from continuing operations of $19.5 million up 24.1%
Q1 2012 diluted EPS from continuing operations was $0.33 per
share vs. $0.27 in prior year period |
 Sonic Automotive, Inc.
Q1 2012 Results
5
B/(W)
than Q1
2011
(amounts in millions,
except per share data)
Q1
2012
$
%
Revenue
$
1,988
$ 170
9%
Gross Profit
$ 312
$ 25
9%
Operating Profit
$ 53
$
5
10%
Continuing Ops:
Profit (after tax)
$ 19
$ 4
24%
Diluted EPS
$ 0.33
$
0.27
22% |
 Sonic Automotive, Inc.
SG&A to Gross
30 bps Improvement
Q1 2011
Q1 2012
79.7%
79.4% |
 Sonic Automotive, Inc.
Capital Spending
7
(amounts in millions)
YTD Q1
2012
Estimated
2012
Real Estate Acquisitions
$ 0.0
$ 14.5
All Other Cap
Ex
12.0
118.9
Subtotal
$ 12.0
$ 133.4
Less: Mortgage Funding
(10.7)
(33.5)
Total Cash Used –
Cap Ex
$ 1.3
$ 99.9 |
 8
Debt Covenants
Compliant with all Covenants
Covenant
Actual Q1
2012
Liquidity Ratio
>= 1.05
1.16
Fixed Charge Coverage Ratio
>= 1.20
1.64
Total Lease Adjusted Leverage
Ratio
<= 5.50
3.95
Sonic Automotive, Inc. |
 Sonic Automotive, Inc.
New Vehicles
Includes
Fleet
(1)
(1) Source: JD Power
11.2%
10.4%
12.4%
Sonic -
Retail
Industry -
Retail
SAAR
Q1 2012
Q1 2011
B/(W)
Retail Revenue
$1.0 billion
12.1%
$909 million
Retail Volume
Selling Price
Gross Margin %
GPU
Retail Gross Profit
29,685
26,703
11.2%
$ 34,311
$ 34,036
$276
6.2%
6.3%
(10 bps)
$ 2,131
$ 2,155
($ 24)
$ 63 million
$ 58 million
9.9%
9 |
 Sonic Automotive, Inc.
Pre-Owned Retail Vehicles
Q1 2012
Q1 2011
B/(W)
Retail Volume
26,547
24,895
6.6%
Pre-Owned Related Gross*
$
84 million
$
76 million
$
8 million
Pre-Owned to New Ratio
.89 to 1
.93 to 1
10
* -
Includes: pre-owned vehicle + reconditioning + F&I gross
Continue to make
progress toward
our goal of 100
per store per
month
Used Retail Sales Per Store
75
77
74
80
82
90
Jan
Feb
Mar
2011
2012 |
 Sonic Automotive, Inc.
11
B/(W) than Q1
2011
(amounts in millions)
Q1 2012
$
%
Revenue
$ 302
$ 15
5.1%
Gross Profit
$ 147
$ 6
FY YOY Gross Profit Change Breakdown:
Fixed Operations
3.9%
•
Customer Pay Up 8.1%
•
Whsl. Parts Up 7.3%
•
Internal & Sublet Up 10.2%
•
Warranty Down 14.2% |
 Sonic Automotive, Inc.
12
Summary and Outlook
Continue to grow organically and improve our base
business
Automotive retail industry steadily increased in Q1
Expect new vehicle inventories to normalize in Q2
Investment in technology and training will continue
Confirm 2012 continuing operations diluted earnings per
share guidance of $1.55 -
$1.65. |
 13
Sonic Automotive, Inc. |