Attached files
| file | filename |
|---|---|
| 8-K - 8-K - SONIC AUTOMOTIVE INC | d614701d8k.htm |
| EX-99.2 - EX-99.2 - SONIC AUTOMOTIVE INC | d614701dex992.htm |
| EX-99.4 - EX-99.4 - SONIC AUTOMOTIVE INC | d614701dex994.htm |
| EX-99.3 - EX-99.3 - SONIC AUTOMOTIVE INC | d614701dex993.htm |
Exhibit 99.1
Sonic Automotive, Inc. Reports Record Breaking 3rd Quarter Across All Operating Sectors As The “True Price” Strategy Takes Hold
CHARLOTTE, N.C. – October 21, 2013 – Sonic Automotive, Inc. (NYSE: SAH), one of the nation’s largest automotive retailers, today reported the highlights in the list below related to its performance in the quarter ended September 30, 2013. During this quarter, Sonic identified a tax gain related to the extinguishment of its 5% Convertible Senior Notes in 2011 and 2012. Sonic is evaluating the effects this gain may have over prior periods. Once this evaluation is completed, Sonic will issue an additional release reporting net income and earnings per share amounts for the quarter.
Q3 2013 Highlights
| • | Total revenue up 5.4% compared to the prior year quarter |
| • | New revenue increased $65.4 million, or 5.5%, over prior year quarter |
| • | Pre-owned revenue increased $31.9 million, or 6.0%, over prior year quarter |
| • | All-time 3rd quarter record retailing 34,087 new units (excludes fleet) |
| • | All-time record retailing 27,632 pre-owned units |
| • | Pre-owned average quarterly volume per store per month at a record level - 91 units |
| • | Q3 record fixed operations gross profit of $149.1 million, up $8.6 million, or 6.1%, compared to the prior year quarter |
| • | Q3 record finance and insurance gross profit of $68.7 million, up 6.8%, and profit per retail unit of $1,114 |
| • | SG&A to gross profit % was 78.1%; adjusted for customer experience, pre-owned and SOX remediation costs discussed below amount was 76.7% |
| • | Acquired two luxury dealerships in Denver, CO |
B. Scott Smith, the Company’s President, noted, “I’m very proud of our team’s record-setting performance during the quarter and despite the additional costs experienced as we continue our growth initiatives, we were able to deliver growth in our operating metrics compared to the third quarter last year. In addition, we closed on the acquisition of Murray Mercedes Benz of Denver and Murray BMW of Denver, which we expect will generate combined annual revenues of approximately $200.0 million. These stores will augment our existing platform in Denver, and our acquisition of these stores, along with our plans to open stand-alone pre-owned sales operations, demonstrates our commitment to the Denver market.”
“Based on our year-to-date performance and internal forecasts, we are updating our targeted guidance range for adjusted earnings per share from previously announced amounts. We are targeting adjusted fully diluted earnings per share from continuing operations at $1.96-$2.03 for the full year 2013. This update reflects a tightening of our guidance range as we feel comfortable that we will be at the upper end of our original guidance of $1.93 to $2.03.
The Company’s EVP of Operations, Jeff Dyke, commented, “It’s exciting to see the progress we made this quarter. As announced today under separate cover, we will begin our One Sonic-One Experience launch in mid-2014. True Price is an important part of this launch. We have noted in the past that it would take some time for the True Price process to settle into our culture and we are finally beginning to see margins improving along with record breaking unit volumes. While we still have a long way to go, I am encouraged by this quarter’s results as we work toward improving even more in Q4. Overall, we had record breaking performances across New, Pre Owned, Fixed and F&I so I could not be more pleased with our results and the efforts of this team as we work toward our One Sonic-One Experience launch.”
For further discussion of our pre-owned and One Sonic-One Experience initiatives, see our separate release dated today.
Third Quarter Operations Review Conference Call
Senior management will host a conference call today at 10:00 A.M. (Eastern) to discuss the quarter’s operations. To access the live broadcast of the call over the Internet go to: www.sonicautomotive.com, then click on “Our Company”, then “Investor Relations”, then “Earnings Conference Calls”.
Presentation materials for the conference call can be accessed on the Company’s website at www.sonicautomotive.com by clicking on the “Investor Relations” tab under “Our Company” and choosing “Webcasts & Presentations”.
The conference call will also be available live by dialing in 10 minutes prior to the start of the call at:
Domestic: 1.877.441.0824
International: 1.706.643.0958
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
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.
Included herein are forward-looking statements, including statements with respect to anticipated growth in used vehicle sales, targeted adjusted earnings per share for the year ended December 31, 2013, an anticipated tax
benefit and anticipated future success and impacts from the implementation of our strategic initiatives. There are many factors that affect management’s views about future events and trends of the Company’s business. These factors involve risk and uncertainties that could cause actual results or trends to differ materially from management’s 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 Company’s annual report on Form 10-K for the year ending December 31, 2012 and quarterly report on Form 10-Q for the period ended June 30, 2013. The Company does not undertake any obligation to update forward-looking information.
###
Sonic Automotive, Inc.
Results of Operations (Unaudited)
(dollars in thousands)
| Third Quarter Ended September 30, 2013 |
Third Quarter Ended September 30, 2012 |
|||||||
| Revenues: |
||||||||
| New retail vehicles |
$ | 1,219,525 | $ | 1,158,524 | ||||
| Fleet vehicles |
41,745 | 37,302 | ||||||
|
|
|
|
|
|||||
| Total new vehicles |
1,261,270 | 1,195,826 | ||||||
| Used vehicles |
559,848 | 527,914 | ||||||
| Wholesale vehicles |
42,731 | 52,280 | ||||||
|
|
|
|
|
|||||
| Total vehicles |
1,863,849 | 1,776,020 | ||||||
| Parts, service and collision repair |
309,600 | 287,311 | ||||||
| Finance, insurance and other |
68,747 | 64,390 | ||||||
|
|
|
|
|
|||||
| Total revenues |
2,242,196 | 2,127,721 | ||||||
| Gross profit |
326,081 | 304,428 | ||||||
| Selling, general and administrative expenses |
(254,564 | ) | (235,328 | ) | ||||
| Impairment charges |
(18 | ) | (23 | ) | ||||
| Depreciation and amortization |
(13,744 | ) | (11,295 | ) | ||||
|
|
|
|
|
|||||
| Operating income (loss) |
$ | 57,755 | $ | 57,782 | ||||
|
|
|
|
|
|||||
| Gross Margin Data (Continuing Operations): |
||||||||
| New retail vehicles |
5.9 | % | 5.7 | % | ||||
| Fleet vehicles |
2.5 | % | 2.5 | % | ||||
| Total new vehicles |
5.7 | % | 5.6 | % | ||||
| Used vehicles |
7.0 | % | 6.7 | % | ||||
| Wholesale vehicles |
(7.5 | %) | (6.5 | %) | ||||
| Parts, service and collision repair |
48.2 | % | 48.9 | % | ||||
| Finance, insurance and other |
100.0 | % | 100.0 | % | ||||
| Overall gross margin |
14.5 | % | 14.3 | % | ||||
| SG&A Expenses (Continuing Operations): |
||||||||
| Compensation |
$ | 151,683 | $ | 140,771 | ||||
| Advertising |
14,132 | 12,498 | ||||||
| Rent |
18,901 | 18,619 | ||||||
| Other |
69,848 | 63,440 | ||||||
|
|
|
|
|
|||||
| Total SG&A expenses |
$ | 254,564 | $ | 235,328 | ||||
| SG&A expenses as % of gross profit |
78.1 | % | 77.3 | % | ||||
| Operating Margin % |
2.6 | % | 2.7 | % | ||||
| Unit Data (Continuing Operations): |
||||||||
| New retail units |
34,087 | 33,264 | ||||||
| Fleet units |
1,451 | 1,325 | ||||||
|
|
|
|
|
|||||
| Total new units |
35,538 | 34,589 | ||||||
| Used units |
27,632 | 26,610 | ||||||
| Wholesale units |
7,641 | 8,931 | ||||||
Sonic Automotive, Inc.
Results of Operations (Unaudited)
(dollars in thousands)
| Nine Months Ended September 30, 2013 |
Nine Months Ended September 30, 2012 |
|||||||
| Revenues: |
||||||||
| New retail vehicles |
$ | 3,520,343 | $ | 3,286,285 | ||||
| Fleet vehicles |
131,143 | 126,585 | ||||||
|
|
|
|
|
|||||
| Total new vehicles |
3,651,486 | 3,412,870 | ||||||
| Used vehicles |
1,625,006 | 1,564,414 | ||||||
| Wholesale vehicles |
134,556 | 138,506 | ||||||
|
|
|
|
|
|||||
| Total vehicles |
5,411,048 | 5,115,790 | ||||||
| Parts, service and collision repair |
913,290 | 875,206 | ||||||
| Finance, insurance and other |
203,461 | 185,737 | ||||||
|
|
|
|
|
|||||
| Total revenues |
6,527,799 | 6,176,733 | ||||||
| Gross profit |
962,907 | 921,034 | ||||||
| Selling, general and administrative expenses |
(748,479 | ) | (712,228 | ) | ||||
| Impairment charges |
(69 | ) | (57 | ) | ||||
| Depreciation and amortization |
(39,020 | ) | (33,399 | ) | ||||
|
|
|
|
|
|||||
| Operating income (loss) |
$ | 175,339 | $ | 175,350 | ||||
|
|
|
|
|
|||||
| Gross Margin Data (Continuing Operations): |
||||||||
| New retail vehicles |
5.8 | % | 6.0 | % | ||||
| Fleet vehicles |
2.7 | % | 2.9 | % | ||||
| Total new vehicles |
5.7 | % | 5.9 | % | ||||
| Used vehicles |
7.1 | % | 7.1 | % | ||||
| Wholesale vehicles |
(4.7 | %) | (3.2 | %) | ||||
| Parts, service and collision repair |
48.7 | % | 48.9 | % | ||||
| Finance, insurance and other |
100.0 | % | 100.0 | % | ||||
| Overall gross margin |
14.8 | % | 14.9 | % | ||||
| SG&A Expenses (Continuing Operations): |
||||||||
| Compensation |
$ | 449,791 | $ | 426,463 | ||||
| Advertising |
41,282 | 37,107 | ||||||
| Rent |
56,344 | 57,198 | ||||||
| Other |
201,062 | 191,460 | ||||||
|
|
|
|
|
|||||
| Total SG&A expenses |
$ | 748,479 | $ | 712,228 | ||||
| SG&A expenses as % of gross profit |
77.7 | % | 77.3 | % | ||||
| Operating Margin % |
2.7 | % | 2.8 | % | ||||
| Unit Data (Continuing Operations): |
||||||||
| New retail units |
98,362 | 94,869 | ||||||
| Fleet units |
4,661 | 4,616 | ||||||
|
|
|
|
|
|||||
| Total new units |
103,023 | 99,485 | ||||||
| Used units |
80,700 | 78,613 | ||||||
| Wholesale units |
23,291 | 23,736 | ||||||
Sonic Automotive, Inc.
Results of Operations (Unaudited)
(In thousands, except units and per unit data)
New Vehicles
| Third Quarter Ended September 30, | Better / (Worse) | |||||||||||||||
| 2013 | 2012 | Change | % Change | |||||||||||||
| Reported: |
||||||||||||||||
| Revenue |
$ | 1,261,270 | $ | 1,195,826 | $ | 65,444 | 5.5 | % | ||||||||
| Gross profit |
$ | 72,408 | $ | 67,312 | $ | 5,096 | 7.6 | % | ||||||||
| Unit sales |
35,538 | 34,589 | 949 | 2.7 | % | |||||||||||
| Revenue per unit |
$ | 35,491 | $ | 34,572 | $ | 919 | 2.7 | % | ||||||||
| Gross profit per unit |
$ | 2,037 | $ | 1,946 | $ | 91 | 4.7 | % | ||||||||
| Gross profit as a % of revenue |
5.7 | % | 5.6 | % | 10 | bps | ||||||||||
| Nine Months Ended September 30, | Better / (Worse) | |||||||||||||||
| 2013 | 2012 | Change | % Change | |||||||||||||
| Reported: |
||||||||||||||||
| Revenue |
$ | 3,651,486 | $ | 3,412,870 | $ | 238,616 | 7.0 | % | ||||||||
| Gross profit |
$ | 206,668 | $ | 200,968 | $ | 5,700 | 2.8 | % | ||||||||
| Unit sales |
103,023 | 99,485 | 3,538 | 3.6 | % | |||||||||||
| Revenue per unit |
$ | 35,443 | $ | 34,305 | $ | 1,138 | 3.3 | % | ||||||||
| Gross profit per unit |
$ | 2,006 | $ | 2,020 | $ | (14 | ) | (0.7 | %) | |||||||
| Gross profit as a % of revenue |
5.7 | % | 5.9 | % | (20 | ) | bps | |||||||||
| Third Quarter Ended September 30, | Better / (Worse) | |||||||||||||||
| 2013 | 2012 | Change | % Change | |||||||||||||
| Same Store: |
||||||||||||||||
| Revenue |
$ | 1,251,683 | $ | 1,195,826 | $ | 55,857 | 4.7 | % | ||||||||
| Gross profit |
$ | 71,605 | $ | 67,443 | $ | 4,162 | 6.2 | % | ||||||||
| Unit sales |
35,364 | 34,589 | 775 | 2.2 | % | |||||||||||
| Revenue per unit |
$ | 35,394 | $ | 34,572 | $ | 822 | 2.4 | % | ||||||||
| Gross profit per unit |
$ | 2,025 | $ | 1,950 | $ | 75 | 3.8 | % | ||||||||
| Gross profit as a % of revenue |
5.7 | % | 5.6 | % | 10 | bps | ||||||||||
| Nine Months Ended September 30, | Better / (Worse) | |||||||||||||||
| 2013 | 2012 | Change | % Change | |||||||||||||
| Same Store: |
||||||||||||||||
| Revenue |
$ | 3,641,900 | $ | 3,412,870 | $ | 229,030 | 6.7 | % | ||||||||
| Gross profit |
$ | 205,894 | $ | 201,687 | $ | 4,207 | 2.1 | % | ||||||||
| Unit sales |
102,849 | 99,485 | 3,364 | 3.4 | % | |||||||||||
| Revenue per unit |
$ | 35,410 | $ | 34,305 | $ | 1,105 | 3.2 | % | ||||||||
| Gross profit per unit |
$ | 2,002 | $ | 2,027 | $ | (25 | ) | (1.2 | %) | |||||||
| Gross profit as a % of revenue |
5.7 | % | 5.9 | % | (20 | ) | bps | |||||||||
Sonic Automotive, Inc.
Results of Operations (Unaudited)
(In thousands, except units and per unit data)
Used Vehicles
| Third Quarter Ended September 30, | Better / (Worse) | |||||||||||||||
| 2013 | 2012 | Change | % Change | |||||||||||||
| Reported: |
||||||||||||||||
| Revenue |
$ | 559,848 | $ | 527,914 | $ | 31,934 | 6.0 | % | ||||||||
| Gross profit |
$ | 38,976 | $ | 35,562 | $ | 3,414 | 9.6 | % | ||||||||
| Unit sales |
27,632 | 26,610 | 1,022 | 3.8 | % | |||||||||||
| Revenue per unit |
$ | 20,261 | $ | 19,839 | $ | 422 | 2.1 | % | ||||||||
| Gross profit per unit |
$ | 1,411 | $ | 1,336 | $ | 75 | 5.6 | % | ||||||||
| Gross profit as a % of revenue |
7.0 | % | 6.7 | % | 30 | bps | ||||||||||
| Nine Months Ended September 30, | Better / (Worse) | |||||||||||||||
| 2013 | 2012 | Change | % Change | |||||||||||||
| Reported: |
||||||||||||||||
| Revenue |
$ | 1,625,006 | $ | 1,564,414 | $ | 60,592 | 3.9 | % | ||||||||
| Gross profit |
$ | 114,615 | $ | 110,679 | $ | 3,936 | 3.6 | % | ||||||||
| Unit sales |
80,700 | 78,613 | 2,087 | 2.7 | % | |||||||||||
| Revenue per unit |
$ | 20,136 | $ | 19,900 | $ | 236 | 1.2 | % | ||||||||
| Gross profit per unit |
$ | 1,420 | $ | 1,408 | $ | 12 | 0.9 | % | ||||||||
| Gross profit as a % of revenue |
7.1 | % | 7.1 | % | 0 | bps | ||||||||||
| Third Quarter Ended September 30, | Better / (Worse) | |||||||||||||||
| 2013 | 2012 | Change | % Change | |||||||||||||
| Same Store: |
||||||||||||||||
| Revenue |
$ | 554,361 | $ | 527,914 | $ | 26,447 | 5.0 | % | ||||||||
| Gross profit |
$ | 38,587 | $ | 34,074 | $ | 4,513 | 13.2 | % | ||||||||
| Unit sales |
27,444 | 26,610 | 834 | 3.1 | % | |||||||||||
| Revenue per unit |
$ | 20,200 | $ | 19,839 | $ | 361 | 1.8 | % | ||||||||
| Gross profit per unit |
$ | 1,406 | $ | 1,280 | $ | 126 | 9.8 | % | ||||||||
| Gross profit as a % of revenue |
7.0 | % | 6.5 | % | 50 | bps | ||||||||||
| Nine Months Ended September 30, | Better / (Worse) | |||||||||||||||
| 2013 | 2012 | Change | % Change | |||||||||||||
| Same Store: |
||||||||||||||||
| Revenue |
$ | 1,619,519 | $ | 1,564,414 | $ | 55,105 | 3.5 | % | ||||||||
| Gross profit |
$ | 114,104 | $ | 109,984 | $ | 4,120 | 3.7 | % | ||||||||
| Unit sales |
80,512 | 78,613 | 1,899 | 2.4 | % | |||||||||||
| Revenue per unit |
$ | 20,115 | $ | 19,900 | $ | 215 | 1.1 | % | ||||||||
| Gross profit per unit |
$ | 1,417 | $ | 1,399 | $ | 18 | 1.3 | % | ||||||||
| Gross profit as a % of revenue |
7.0 | % | 7.0 | % | 0 | bps | ||||||||||
Sonic Automotive, Inc.
Results of Operations (Unaudited)
(In thousands, except units and per unit data)
Wholesale Vehicles
| Third Quarter Ended September 30, | Better / (Worse) | |||||||||||||||
| 2013 | 2012 | Change | % Change | |||||||||||||
| Reported: |
||||||||||||||||
| Revenue |
$ | 42,731 | $ | 52,280 | $ | (9,549 | ) | (18.3 | %) | |||||||
| Gross profit (loss) |
$ | (3,197 | ) | $ | (3,394 | ) | $ | 197 | 5.8 | % | ||||||
| Unit sales |
7,641 | 8,931 | (1,290 | ) | (14.4 | %) | ||||||||||
| Revenue per unit |
$ | 5,592 | $ | 5,854 | $ | (262 | ) | (4.5 | %) | |||||||
| Gross profit (loss) per unit |
$ | (418 | ) | $ | (380 | ) | $ | (38 | ) | (10.0 | %) | |||||
| Gross profit (loss) as a % of revenue |
(7.5 | %) | (6.5 | %) | (100 | ) | bps | |||||||||
| Nine Months Ended September 30, | Better / (Worse) | |||||||||||||||
| 2013 | 2012 | Change | % Change | |||||||||||||
| Reported: |
||||||||||||||||
| Revenue |
$ | 134,556 | $ | 138,506 | $ | (3,950 | ) | (2.9 | %) | |||||||
| Gross profit (loss) |
$ | (6,343 | ) | $ | (4,399 | ) | $ | (1,944 | ) | (44.2 | %) | |||||
| Unit sales |
23,291 | 23,736 | (445 | ) | (1.9 | %) | ||||||||||
| Revenue per unit |
$ | 5,777 | $ | 5,835 | $ | (58 | ) | (1.0 | %) | |||||||
| Gross profit (loss) per unit |
$ | (272 | ) | $ | (185 | ) | $ | (87 | ) | (47.0 | %) | |||||
| Gross profit (loss) as a % of revenue |
(4.7 | %) | (3.2 | %) | (150 | ) | bps | |||||||||
| Third Quarter Ended September 30, | Better / (Worse) | |||||||||||||||
| 2013 | 2012 | Change | % Change | |||||||||||||
| Same Store: |
||||||||||||||||
| Revenue |
$ | 42,433 | $ | 52,280 | $ | (9,847 | ) | (18.8 | %) | |||||||
| Gross loss |
$ | (3,191 | ) | $ | (3,394 | ) | $ | 203 | 6.0 | % | ||||||
| Unit sales |
7,612 | 8,931 | (1,319 | ) | (14.8 | %) | ||||||||||
| Revenue per unit |
$ | 5,574 | $ | 5,854 | $ | (280 | ) | (4.8 | %) | |||||||
| Gross loss per unit |
$ | (419 | ) | $ | (380 | ) | $ | (39 | ) | (10.3 | %) | |||||
| Gross loss as a % of revenue |
(7.5 | %) | (6.5 | %) | (100 | ) | bps | |||||||||
| Nine Months Ended September 30, | Better / (Worse) | |||||||||||||||
| 2013 | 2012 | Change | % Change | |||||||||||||
| Same Store: |
||||||||||||||||
| Revenue |
$ | 134,257 | $ | 138,506 | $ | (4,249 | ) | (3.1 | %) | |||||||
| Gross loss |
$ | (6,336 | ) | $ | (4,399 | ) | $ | (1,937 | ) | (44.0 | %) | |||||
| Unit sales |
23,262 | 23,736 | (474 | ) | (2.0 | %) | ||||||||||
| Revenue per unit |
$ | 5,772 | $ | 5,835 | $ | (63 | ) | (1.1 | %) | |||||||
| Gross loss per unit |
$ | (272 | ) | $ | (185 | ) | $ | (87 | ) | (47.0 | %) | |||||
| Gross loss as a % of revenue |
(4.7 | %) | (3.2 | %) | (150 | ) | bps | |||||||||
Sonic Automotive, Inc.
Results of Operations (Unaudited)
(In thousands)
Parts, Service and Collision Repair (“Fixed Operations”)
| Third Quarter Ended September 30, | Better / (Worse) | |||||||||||||||
| 2013 | 2012 | Change | % Change | |||||||||||||
| Reported: |
||||||||||||||||
| Revenue |
||||||||||||||||
| Customer Pay |
$ | 137,106 | $ | 131,126 | $ | 5,980 | 4.6 | % | ||||||||
| Warranty |
45,405 | 40,632 | 4,773 | 11.7 | % | |||||||||||
| Wholesale Parts |
43,349 | 37,720 | 5,629 | 14.9 | % | |||||||||||
| Internal, Sublet & Other |
83,740 | 77,833 | 5,907 | 7.6 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 309,600 | $ | 287,311 | $ | 22,289 | 7.8 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit |
||||||||||||||||
| Customer Pay |
$ | 75,203 | $ | 71,939 | $ | 3,264 | 4.5 | % | ||||||||
| Warranty |
24,374 | 21,225 | 3,149 | 14.8 | % | |||||||||||
| Wholesale Parts |
7,881 | 7,249 | 632 | 8.7 | % | |||||||||||
| Internal, Sublet & Other |
41,689 | 40,145 | 1,544 | 3.8 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 149,147 | $ | 140,558 | $ | 8,589 | 6.1 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit as a % of revenue |
||||||||||||||||
| Customer Pay |
54.9 | % | 54.9 | % | 0 | bps | ||||||||||
| Warranty |
53.7 | % | 52.2 | % | 150 | bps | ||||||||||
| Wholesale Parts |
18.2 | % | 19.2 | % | (100 | ) | bps | |||||||||
| Internal, Sublet & Other |
49.8 | % | 51.6 | % | (180 | ) | bps | |||||||||
|
|
|
|
|
|
|
|||||||||||
| Total |
48.2 | % | 48.9 | % | (70 | ) | bps | |||||||||
| Nine Months Ended September 30, | Better / (Worse) | |||||||||||||||
| 2013 | 2012 | Change | % Change | |||||||||||||
| Reported: |
||||||||||||||||
| Revenue |
||||||||||||||||
| Customer Pay |
$ | 407,252 | $ | 395,080 | $ | 12,172 | 3.1 | % | ||||||||
| Warranty |
137,489 | 126,343 | 11,146 | 8.8 | % | |||||||||||
| Wholesale Parts |
124,870 | 115,545 | 9,325 | 8.1 | % | |||||||||||
| Internal, Sublet & Other |
243,679 | 238,238 | 5,441 | 2.3 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 913,290 | $ | 875,206 | $ | 38,084 | 4.4 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit |
||||||||||||||||
| Customer Pay |
$ | 224,485 | $ | 217,840 | $ | 6,645 | 3.1 | % | ||||||||
| Warranty |
74,657 | 66,315 | 8,342 | 12.6 | % | |||||||||||
| Wholesale Parts |
23,158 | 22,250 | 908 | 4.1 | % | |||||||||||
| Internal, Sublet & Other |
122,206 | 121,644 | 562 | 0.5 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 444,506 | $ | 428,049 | $ | 16,457 | 3.8 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit as a % of revenue |
||||||||||||||||
| Customer Pay |
55.1 | % | 55.1 | % | 0 | bps | ||||||||||
| Warranty |
54.3 | % | 52.5 | % | 180 | bps | ||||||||||
| Wholesale Parts |
18.5 | % | 19.3 | % | (80 | ) | bps | |||||||||
| Internal, Sublet & Other |
50.2 | % | 51.1 | % | (90 | ) | bps | |||||||||
|
|
|
|
|
|
|
|||||||||||
| Total |
48.7 | % | 48.9 | % | (20 | ) | bps | |||||||||
Sonic Automotive, Inc.
Results of Operations (Unaudited)
(In thousands)
Parts, Service and Collision Repair (“Fixed Operations”)
| Third Quarter Ended September 30, | Better / (Worse) | |||||||||||||||
| 2013 | 2012 | Change | % Change | |||||||||||||
| Same Store: |
||||||||||||||||
| Revenue |
||||||||||||||||
| Customer Pay |
$ | 134,642 | $ | 131,126 | $ | 3,516 | 2.7 | % | ||||||||
| Warranty |
44,571 | 40,632 | 3,939 | 9.7 | % | |||||||||||
| Wholesale Parts |
42,695 | 37,720 | 4,975 | 13.2 | % | |||||||||||
| Internal, Sublet & Other |
82,898 | 77,833 | 5,065 | 6.5 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 304,806 | $ | 287,311 | $ | 17,495 | 6.1 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit |
||||||||||||||||
| Customer Pay |
$ | 73,885 | $ | 71,939 | $ | 1,946 | 2.7 | % | ||||||||
| Warranty |
23,918 | 21,225 | 2,693 | 12.7 | % | |||||||||||
| Wholesale Parts |
7,717 | 7,249 | 468 | 6.5 | % | |||||||||||
| Internal, Sublet & Other |
41,037 | 39,836 | 1,201 | 3.0 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 146,557 | $ | 140,249 | $ | 6,308 | 4.5 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit as a % of revenue |
||||||||||||||||
| Customer Pay |
54.9 | % | 54.9 | % | 0 | bps | ||||||||||
| Warranty |
53.7 | % | 52.2 | % | 150 | bps | ||||||||||
| Wholesale Parts |
18.1 | % | 19.2 | % | (110 | ) | bps | |||||||||
| Internal, Sublet & Other |
49.5 | % | 51.2 | % | (170 | ) | bps | |||||||||
|
|
|
|
|
|
|
|||||||||||
| Total |
48.1 | % | 48.8 | % | (70 | ) | bps | |||||||||
| Nine Months Ended September 30, | Better / (Worse) | |||||||||||||||
| 2013 | 2012 | Change | % Change | |||||||||||||
| Same Store: |
||||||||||||||||
| Revenue |
||||||||||||||||
| Customer Pay |
$ | 404,788 | $ | 395,080 | $ | 9,708 | 2.5 | % | ||||||||
| Warranty |
136,655 | 126,343 | 10,312 | 8.2 | % | |||||||||||
| Wholesale Parts |
124,216 | 115,545 | 8,671 | 7.5 | % | |||||||||||
| Internal, Sublet & Other |
242,836 | 238,238 | 4,598 | 1.9 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 908,495 | $ | 875,206 | $ | 33,289 | 3.8 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit |
||||||||||||||||
| Customer Pay |
$ | 223,166 | $ | 217,840 | $ | 5,326 | 2.4 | % | ||||||||
| Warranty |
74,511 | 66,315 | 8,196 | 12.4 | % | |||||||||||
| Wholesale Parts |
22,995 | 22,250 | 745 | 3.3 | % | |||||||||||
| Internal, Sublet & Other |
121,261 | 120,986 | 275 | 0.2 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 441,933 | $ | 427,391 | $ | 14,542 | 3.4 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit as a % of revenue |
||||||||||||||||
| Customer Pay |
55.1 | % | 55.1 | % | 0 | bps | ||||||||||
| Warranty |
54.5 | % | 52.5 | % | 200 | bps | ||||||||||
| Wholesale Parts |
18.5 | % | 19.3 | % | (80 | ) | bps | |||||||||
| Internal, Sublet & Other |
49.9 | % | 50.8 | % | (90 | ) | bps | |||||||||
|
|
|
|
|
|
|
|||||||||||
| Total |
48.6 | % | 48.8 | % | (20 | ) | bps | |||||||||
Sonic Automotive, Inc.
Results of Operations (Unaudited)
(In thousands, except per unit data)
Finance, Insurance and Other (“F&I”)
| Third Quarter Ended September 30, | Better / (Worse) | |||||||||||||||
| 2013 | 2012 | Change | % Change | |||||||||||||
| Reported: |
||||||||||||||||
| Revenue |
$ | 68,747 | $ | 64,390 | $ | 4,357 | 6.8 | % | ||||||||
| Gross profit per retail unit (excludes fleet) |
$ | 1,114 | $ | 1,075 | $ | 39 | 3.6 | % | ||||||||
| Nine Months Ended September 30, | Better / (Worse) | |||||||||||||||
| 2013 | 2012 | Change | % Change | |||||||||||||
| Reported: |
||||||||||||||||
| Revenue |
$ | 203,461 | $ | 185,737 | $ | 17,724 | 9.5 | % | ||||||||
| Gross profit per retail unit (excludes fleet) |
$ | 1,136 | $ | 1,071 | $ | 65 | 6.1 | % | ||||||||
| Third Quarter Ended September 30, | Better / (Worse) | |||||||||||||||
| 2013 | 2012 | Change | % Change | |||||||||||||
| Same Store: |
||||||||||||||||
| Revenue |
$ | 68,267 | $ | 64,240 | $ | 4,027 | 6.3 | % | ||||||||
| Gross profit per retail unit (excluding fleet) |
$ | 1,113 | $ | 1,073 | $ | 40 | 3.7 | % | ||||||||
| Nine Months Ended September 30, | Better / (Worse) | |||||||||||||||
| 2013 | 2012 | Change | % Change | |||||||||||||
| Same Store: |
||||||||||||||||
| Revenue |
$ | 202,996 | $ | 185,081 | $ | 17,915 | 9.7 | % | ||||||||
| Gross profit per retail unit (excluding fleet) |
$ | 1,136 | $ | 1,067 | $ | 69 | 6.5 | % | ||||||||
Sonic Automotive, Inc.
Results of Operations (Unaudited)
(In thousands)
Selling, General and Administrative (“SG&A”) Expenses
| Third Quarter Ended September 30, |
Better / (Worse) | |||||||||||||||
| 2013 | 2012 | Change | % Change | |||||||||||||
| Compensation |
$ | 151,683 | $ | 140,771 | $ | (10,912 | ) | (7.8 | %) | |||||||
| Advertising |
14,132 | 12,498 | (1,634 | ) | (13.1 | %) | ||||||||||
| Rent |
18,901 | 18,619 | (282 | ) | (1.5 | %) | ||||||||||
| Other |
69,848 | 63,440 | (6,408 | ) | (10.1 | %) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 254,564 | $ | 235,328 | $ | (19,236 | ) | (8.2 | %) | |||||||
|
|
|
|
|
|
|
|
|
|||||||||
| SG&A as a % of gross profit |
||||||||||||||||
| Compensation |
46.5 | % | 46.2 | % | (30 | ) | bps | |||||||||
| Advertising |
4.3 | % | 4.1 | % | (20 | ) | bps | |||||||||
| Rent |
5.8 | % | 6.1 | % | 30 | bps | ||||||||||
| Other |
21.5 | % | 20.9 | % | (60 | ) | bps | |||||||||
|
|
|
|
|
|
|
|||||||||||
| Total |
78.1 | % | 77.3 | % | (80 | ) | bps | |||||||||
| Nine Months Ended September 30, |
Better / (Worse) | |||||||||||||||
| 2013 | 2012 | Change | % Change | |||||||||||||
| Compensation |
$ | 449,791 | $ | 426,463 | $ | (23,328 | ) | (5.5 | %) | |||||||
| Advertising |
41,282 | 37,107 | (4,175 | ) | (11.3 | %) | ||||||||||
| Rent |
56,344 | 57,198 | 854 | 1.5 | % | |||||||||||
| Other |
201,062 | 191,460 | (9,602 | ) | (5.0 | %) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 748,479 | $ | 712,228 | $ | (36,251 | ) | (5.1 | %) | |||||||
|
|
|
|
|
|
|
|
|
|||||||||
| SG&A as a % of gross profit |
||||||||||||||||
| Compensation |
46.7 | % | 46.3 | % | (40 | ) | bps | |||||||||
| Advertising |
4.3 | % | 4.0 | % | (30 | ) | ||||||||||
| Rent |
5.9 | % | 6.2 | % | 30 | bps | ||||||||||
| Other |
20.8 | % | 20.8 | % | (0 | ) | bps | |||||||||
|
|
|
|
|
|
|
|||||||||||
| Total |
77.7 | % | 77.3 | % | (40 | ) | bps | |||||||||