CHARLOTTE, N.C., Oct. 24, 2017 /PRNewswire/ -- Sonic Automotive,
Inc. (NYSE: SAH), one of the nation's largest automotive retailers,
today reported financial results for the third quarter of 2017.
Third Quarter 2017 Results
- EchoPark units retailed up 37.7% over the prior year
quarter
- All-time record quarterly F&I gross profit and gross profit
per retail unit of $92.9 million and
$1,408, respectively
- Record Q3 total gross profit of $362.6
million, up 1.0% over the prior year quarter
- Repurchased 0.7 million Class A shares (approximately 1.5% of
outstanding stock) for $11.4 million
and declared $0.05/share
dividend
- GAAP continuing operations net income of $19.7 million with EPS of $0.45 per diluted share
- Adjusted continuing operations net income of $17.4 million with adjusted EPS of $0.40 per diluted share
GAAP Basis
Net income from continuing operations for the third quarter of
2017 was $19.7 million, or
$0.45 per diluted share. These
results include a gain related to the disposal of a franchise
partially offset by charges related to fixed asset impairments,
weather-related physical damage costs and legal matters.
Comparatively, net income from continuing operations for the
third quarter of 2016 was $19.0
million, or $0.42 per diluted
share. These results include charges related to fixed asset
impairments and legal matters which were partially offset by
favorable weather-related physical damage accrual adjustments.
Adjusted Basis
Adjusted net income from continuing operations and related
earnings per diluted share are non-GAAP financial measures.
The schedules included in this press release reconcile these
non-GAAP financial measures to the most directly comparable GAAP
financial measures.
Adjusted net income from continuing operations for the third
quarter of 2017 was $17.4 million, or
$0.40 per diluted share. The
adjustments in the 2017 quarterly period relate to a gain related
to the disposal of a franchise and charges related to fixed asset
impairments, weather-related physical damage costs and legal
matters. Adjusted net income from continuing operations for the
third quarter of 2016 was $21.2
million, or $0.47 per diluted
share. The adjustments in the 2016 quarterly period relate to
charges for fixed asset impairments and legal matters, which were
partially offset by favorable weather-related physical damage
accrual adjustments.
Commentary
B. Scott Smith, the Company's
Chief Executive Officer, noted, "We would first like to thank all
of the first responders and public officials that prepared people
and their communities for the storms and then have been tirelessly
working to help those in need. We know all of the work is not
close to being completed and the road to recovery will be
challenging. We will continue working with those affected to
help them put their lives back together."
"The retail environment continues to be healthy with what we
believe to be an adequate supply of credit and an ample supply of
new and pre-owned inventory. We continue to see strong
competition between dealers to acquire customers, which is putting
pressure on margins notwithstanding the increase in incentives that
we have seen in certain brands. Our build-out of EchoPark
continues as planned and we anticipate opening in San Antonio, Texas in the first quarter and
have an active schedule that will include the opening of
approximately 10 additional EchoPark locations by the end of
2018."
Jeff Dyke, Sonic's EVP of
Operations, stated, "The third quarter was similar to what we have
seen for most of the year prior to the hurricanes in the
Texas and Florida markets. Our Houston stores
continued to struggle and BMW, which is about 30% of our profit
structure, continues to be a major challenge.
Hurricane Harvey closed all of our stores in the Houston market for about a week. Nearly 20% of
our store count and 30% of our profit comes from the Houston market, which made the end of August a
challenge. We were able to have the majority of our stores
open within a few days, and by September 15,
2017, all of our stores were open and we began to help
people replace and repair vehicles damaged by the hurricane.
As a result of our national footprint and scale, we were able to
ship in vehicles from around the country to ensure we had an
adequate supply of inventory. Business was robust in
Houston in the final half of
September due to recovery efforts. We anticipate the retail
activity in the Houston market in
the fourth quarter of 2017 to continue to be favorable as those
affected replace and repair vehicles."
"Hurricane Irma's effects on Sonic were less significant than
those of Harvey, but still affected our operations from south
Florida up into the
Carolinas. We believe the threat of the storm kept customers
away as they prepared for a storm that had an uncertain track as it
approached and proceeded up the west coast of Florida. We did
not see the level of sales activity rebound like we experienced in
the Houston market as Irma's
flooding was not as significant. The loss of power affected
our south Florida stores and west
coast Florida stores from between
seven to nine days, but all stores were back in business by
September 15."
"EchoPark continues its robust growth and our six stores
combined were cash flow positive during the quarter. Our
newest location in Colorado
Springs was cash flow positive in its third month of
operation, some six months ahead of the original EchoPark
stores. We are very excited about the EchoPark brand and what
we have been able to accomplish in the Colorado market."
Scott Smith continued, "We are
dedicated to returning capital to our stockholders. We again
declared a dividend of $0.05 per
share in the quarter and repurchased approximately 667,000 shares
of stock. Together, these two actions returned approximately
$13.6 million to our
stockholders."
"As stated in a previous press release, we estimate the negative
impact experienced in the third quarter of fiscal 2017 due to the
storms to be offset by a lift of increased automotive retail sales
and service activity in the fourth quarter. Accordingly, we
expect fiscal 2017 GAAP earnings per share from continuing
operations to be between $1.55 and
$1.65 and expect fiscal 2017 adjusted earnings per share
from continuing operations to be between $1.85 and $1.95. We can add more color on
this during our call today."
Dividend
Sonic's Board of Directors approved a quarterly dividend of
$0.05 per share payable in cash for
our stockholders of record on December
15, 2017. The dividend will be payable on January 12, 2018.
Third Quarter Earnings Conference Call
Senior management will host a conference call today at
11:00 A.M. (Eastern) to discuss the
quarter's 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 "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: (877) 450-3867
International: (706) 643-0958
Conference ID: 93768785
A conference call replay will be available one hour following
the call for seven days and can be accessed by calling:
Domestic: (855) 859-2056
International: (404) 537-3406
Conference ID: 93768785
About Sonic Automotive
Sonic Automotive, Inc., a Fortune 500 company based in
Charlotte, N.C., is one of the
nation's largest automotive retailers. Sonic can be reached on the
web at www.sonicautomotive.com. More information about EchoPark
Automotive can be found at www.echopark.com.
Forward-Looking Statements
Included herein are forward-looking statements, including
statements with respect to our 2017 earnings expectations, our
long-term strategy, and the anticipated expansion of our EchoPark
business. There are many factors that affect management's
views about future events and trends of the Company's
business. These factors involve risks and uncertainties that
could cause actual results or trends to differ materially from
management's views, including without limitation, economic
conditions in the markets in which we operate, new and used vehicle
industry sales volume, the success of our operational strategies,
the rate and timing of overall economic recovery or decline, and
the risk factors described in the Company's Annual Report on Form
10-K for the year ended December 31,
2016. The Company does not undertake any obligation to update
forward-looking information, except as required under federal
securities laws and the rules and regulations of the Securities and
Exchange Commission (the "SEC").
Non-GAAP Financial Measures
This press release and the attached financial tables contain
certain non-GAAP financial measures as defined under SEC rules,
such as adjusted net income from continuing operations and related
earnings per diluted share, which exclude certain items disclosed
in the attached financial tables. As required by SEC rules,
the Company provides reconciliations of these non-GAAP financial
measures to the most directly comparable GAAP financial measures.
The Company believes that these non-GAAP financial measures
improve the transparency of the Company's disclosure, provide a
meaningful presentation of the Company's results from its core
business operations excluding the impact of items not related to
the Company's ongoing core business operations, and improve the
period-to-period comparability of the Company's results from its
core business operations.
Sonic Automotive,
Inc.
Results of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
Results of
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(In thousands,
except per share and unit data)
|
Revenues:
|
|
|
|
|
|
|
|
New retail
vehicles
|
$
1,344,941
|
|
$
1,364,842
|
|
$
3,739,640
|
|
$
3,784,122
|
Fleet
vehicles
|
17,360
|
|
10,302
|
|
69,662
|
|
42,056
|
Total new
vehicles
|
1,362,301
|
|
1,375,144
|
|
3,809,302
|
|
3,826,178
|
Used
vehicles
|
659,724
|
|
660,974
|
|
1,936,088
|
|
1,881,514
|
Wholesale
vehicles
|
43,098
|
|
70,522
|
|
130,174
|
|
153,141
|
Total
vehicles
|
2,065,123
|
|
2,106,640
|
|
5,875,564
|
|
5,860,833
|
Parts, service and
collision repair
|
347,717
|
|
361,709
|
|
1,060,873
|
|
1,059,093
|
Finance, insurance and
other, net
|
92,861
|
|
89,579
|
|
262,832
|
|
254,940
|
Total
revenues
|
2,505,701
|
|
2,557,928
|
|
7,199,269
|
|
7,174,866
|
Gross
profit
|
362,622
|
|
359,085
|
|
1,073,586
|
|
1,057,540
|
Selling, general and
administrative expenses
|
(283,974)
|
|
(282,141)
|
|
(870,139)
|
|
(843,721)
|
Impairment
charges
|
(200)
|
|
(6,089)
|
|
(3,315)
|
|
(6,240)
|
Depreciation and
amortization
|
(22,686)
|
|
(19,928)
|
|
(65,751)
|
|
(57,302)
|
Operating income
(loss)
|
55,762
|
|
50,927
|
|
134,381
|
|
150,277
|
Other income
(expense):
|
|
|
|
|
|
|
Interest expense, floor
plan
|
(8,882)
|
|
(6,672)
|
|
(26,413)
|
|
(19,797)
|
Interest expense,
other, net
|
(13,028)
|
|
(13,016)
|
|
(39,200)
|
|
(37,560)
|
Other income (expense),
net
|
4
|
|
11
|
|
(14,490)
|
|
120
|
Total other income
(expense)
|
(21,906)
|
|
(19,677)
|
|
(80,103)
|
|
(57,237)
|
Income (loss) from
continuing operations before taxes
|
33,856
|
|
31,250
|
|
54,278
|
|
93,040
|
Provision for income
taxes for continuing operations - benefit (expense)
|
(14,126)
|
|
(12,281)
|
|
(22,254)
|
|
(36,565)
|
Income (loss) from
continuing operations
|
19,730
|
|
18,969
|
|
32,024
|
|
56,475
|
Income (loss) from
discontinued operations
|
(290)
|
|
(858)
|
|
(993)
|
|
(918)
|
Net income
(loss)
|
$
19,440
|
|
$
18,111
|
|
$
31,031
|
|
$
55,557
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per common share:
|
|
|
|
|
|
|
Earnings (loss) per
share from continuing operations
|
$
0.45
|
|
$
0.42
|
|
$
0.72
|
|
$
1.22
|
Earnings (loss) per
share from discontinued operations
|
(0.01)
|
|
(0.02)
|
|
(0.02)
|
|
(0.02)
|
Earnings (loss) per
common share
|
$
0.44
|
|
$
0.40
|
|
$
0.70
|
|
$
1.20
|
Weighted average
common shares outstanding
|
43,811
|
|
45,354
|
|
44,585
|
|
46,130
|
|
|
|
|
|
|
|
Gross Margin Data
(Continuing Operations):
|
|
|
|
|
|
|
New retail
vehicles
|
4.9%
|
|
4.6%
|
|
5.0%
|
|
4.9%
|
Fleet
vehicles
|
(0.6%)
|
|
0.3%
|
|
(1.6%)
|
|
0.5%
|
Total new
vehicles
|
4.9%
|
|
4.5%
|
|
4.9%
|
|
4.9%
|
Used
vehicles
|
5.9%
|
|
6.0%
|
|
6.2%
|
|
6.2%
|
Wholesale
vehicles
|
(7.6%)
|
|
(3.6%)
|
|
(4.9%)
|
|
(3.5%)
|
Parts, service and
collision repair
|
48.2%
|
|
47.0%
|
|
48.1%
|
|
47.6%
|
Finance, insurance and
other
|
100.0%
|
|
100.0%
|
|
100.0%
|
|
100.0%
|
Overall gross
margin
|
14.5%
|
|
14.0%
|
|
14.9%
|
|
14.7%
|
|
|
|
|
|
|
|
SG&A Expenses
(Continuing Operations):
|
|
|
|
|
|
|
Compensation
|
$
172,691
|
|
$
171,287
|
|
$
520,420
|
|
$
506,894
|
Advertising
|
15,846
|
|
14,987
|
|
46,448
|
|
45,834
|
Rent
|
17,711
|
|
18,037
|
|
55,309
|
|
55,265
|
Other
|
77,726
|
|
77,830
|
|
247,962
|
|
235,728
|
Total SG&A
expenses
|
$
283,974
|
|
$
282,141
|
|
$
870,139
|
|
$
843,721
|
SG&A expenses as %
of gross profit
|
78.3%
|
|
78.6%
|
|
81.0%
|
|
79.8%
|
|
|
|
|
|
|
|
Operating Margin
%
|
2.2%
|
|
2.0%
|
|
1.9%
|
|
2.1%
|
|
|
|
|
|
|
|
Unit Data (Continuing
Operations):
|
|
|
|
|
|
|
New retail
units
|
35,117
|
|
35,715
|
|
97,453
|
|
99,100
|
Fleet units
|
372
|
|
339
|
|
1,679
|
|
1,341
|
Total new
units
|
35,489
|
|
36,054
|
|
99,132
|
|
100,441
|
Used units
|
30,841
|
|
30,933
|
|
91,749
|
|
89,553
|
Wholesale
units
|
7,832
|
|
10,377
|
|
23,922
|
|
26,012
|
|
|
|
|
|
|
|
Sonic Automotive,
Inc.
Results of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2017
|
|
|
|
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 thousands,
except per share amounts)
|
Reported:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) and
shares
|
43,496
|
|
$
19,730
|
|
|
|
$
(290)
|
|
|
|
$
19,440
|
|
|
Effect of participating
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-vested restricted
stock
|
|
|
(18)
|
|
|
|
-
|
|
|
|
(18)
|
|
|
Basic earnings (loss)
and shares
|
43,496
|
|
$
19,712
|
|
$
0.45
|
|
$
(290)
|
|
$
-
|
|
$
19,422
|
|
$
0.45
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock compensation
plans
|
315
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
and shares
|
43,811
|
|
$
19,712
|
|
$
0.45
|
|
$
(290)
|
|
$
(0.01)
|
|
$
19,422
|
|
$
0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment
charges
|
|
|
$
198
|
|
|
|
$
-
|
|
|
|
$
198
|
|
|
Storm damage
|
|
|
2,971
|
|
|
|
-
|
|
|
|
2,971
|
|
|
Legal and other
accruals
|
|
|
959
|
|
|
|
-
|
|
|
|
959
|
|
|
Gain on
disposal
|
|
|
(8,489)
|
|
|
|
-
|
|
|
|
(8,489)
|
|
|
Total adjustments
before taxes
|
|
|
(4,361)
|
|
|
|
-
|
|
|
|
(4,361)
|
|
|
Income tax effect of
adjustments
|
|
|
2,065
|
|
|
|
-
|
|
|
|
2,065
|
|
|
Effect of adjustments,
net of income taxes
|
|
|
$
(2,296)
|
|
$
(0.05)
|
|
$
-
|
|
$
-
|
|
$
(2,296)
|
|
$
(0.05)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
diluted earnings (loss)
per share (1)
|
|
|
$
17,434
|
|
$
0.40
|
|
$
(290)
|
|
$
(0.01)
|
|
$
17,144
|
|
$
0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net loss
attributable to Pre-Owned Stores operations was $0.07 per fully
diluted share in the three months ended September 30,
2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2016
|
|
|
|
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 thousands,
except per share amounts)
|
Reported:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) and
shares
|
45,118
|
|
$
18,969
|
|
|
|
$
(858)
|
|
|
|
$
18,111
|
|
|
Effect of participating
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-vested restricted
stock
|
|
|
(11)
|
|
|
|
-
|
|
|
|
(11)
|
|
|
Basic earnings (loss)
and shares
|
45,118
|
|
$
18,958
|
|
$
0.42
|
|
$
(858)
|
|
$
(0.02)
|
|
$
18,100
|
|
$
0.40
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock compensation
plans
|
236
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
and shares (2)
|
45,354
|
|
$
18,958
|
|
$
0.42
|
|
$
(858)
|
|
$
(0.02)
|
|
$
18,100
|
|
$
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment
charges
|
|
|
$
6,089
|
|
|
|
$
-
|
|
|
|
$
6,089
|
|
|
Storm damage
|
|
|
(2,341)
|
|
|
|
1,000
|
|
|
|
(1,341)
|
|
|
Total adjustments
before taxes
|
|
|
3,748
|
|
|
|
1,000
|
|
|
|
4,748
|
|
|
Income tax effect of
adjustments
|
|
|
(1,473)
|
|
|
|
(390)
|
|
|
|
(1,863)
|
|
|
Effect of adjustments,
net of income taxes
|
|
|
$
2,275
|
|
$
0.05
|
|
$
610
|
|
$
0.01
|
|
$
2,885
|
|
$
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
diluted earnings (loss)
per share (2)
|
|
|
$
21,244
|
|
$
0.47
|
|
$
(248)
|
|
$
(0.01)
|
|
$
20,996
|
|
$
0.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Net loss
attributable to Pre-Owned Stores operations was $0.06 per fully
diluted share in the three months ended September 30,
2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sonic Automotive,
Inc.
Results of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2017
|
|
|
|
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 thousands,
except per share amounts)
|
Reported:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) and
shares
|
44,281
|
|
$
32,024
|
|
|
|
$
(993)
|
|
|
|
$
31,031
|
|
|
Effect of participating
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-vested restricted
stock
|
|
|
(28)
|
|
|
|
-
|
|
|
|
(28)
|
|
|
Basic earnings (loss)
and shares
|
44,281
|
|
$
31,996
|
|
$
0.72
|
|
$
(993)
|
|
$
(0.02)
|
|
$
31,003
|
|
$
0.70
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock compensation
plans
|
304
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
and shares
|
44,585
|
|
$
31,996
|
|
$
0.72
|
|
$
(993)
|
|
$
(0.02)
|
|
$
31,003
|
|
$
0.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment
charges
|
|
|
$
3,313
|
|
|
|
$
-
|
|
|
|
$
3,313
|
|
|
Storm damage
|
|
|
9,971
|
|
|
|
-
|
|
|
|
9,971
|
|
|
Legal and other
accruals
|
|
|
810
|
|
|
|
-
|
|
|
|
810
|
|
|
Lease exit
adjustments
|
|
|
992
|
|
|
|
-
|
|
|
|
992
|
|
|
Gain on
disposal
|
|
|
(8,489)
|
|
|
|
-
|
|
|
|
(8,489)
|
|
|
Loss on debt
extinguishment
|
|
|
15,268
|
|
|
|
-
|
|
|
|
15,268
|
|
|
Total adjustments
before taxes
|
|
|
21,865
|
|
|
|
-
|
|
|
|
21,865
|
|
|
Income tax effect of
adjustments
|
|
|
(8,229)
|
|
|
|
-
|
|
|
|
(8,229)
|
|
|
Effect of adjustments,
net of income taxes
|
|
|
$
13,636
|
|
$
0.30
|
|
$
-
|
|
$
-
|
|
$
13,636
|
|
$
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
diluted earnings (loss)
per share (3)
|
|
|
$
45,660
|
|
$
1.02
|
|
$
(993)
|
|
$
(0.02)
|
|
$
44,667
|
|
$
1.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Net loss
attributable to Pre-Owned Stores operations was $0.21 per fully
diluted share in the nine months ended September 30,
2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2016
|
|
|
|
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 thousands,
except per share amounts)
|
Reported:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) and
shares
|
45,930
|
|
$
56,475
|
|
|
|
$
(918)
|
|
|
|
$
55,557
|
|
|
Effect of participating
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-vested restricted
stock
|
|
|
(31)
|
|
|
|
-
|
|
|
|
(31)
|
|
|
Basic earnings (loss)
and shares
|
45,930
|
|
$
56,444
|
|
$
1.23
|
|
$
(918)
|
|
$
(0.02)
|
|
$
55,526
|
|
$
1.21
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock compensation
plans
|
200
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
and shares
|
46,130
|
|
$
56,444
|
|
$
1.22
|
|
$
(918)
|
|
$
(0.02)
|
|
$
55,526
|
|
$
1.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment
charges
|
|
|
$
6,089
|
|
|
|
$
-
|
|
|
|
$
6,089
|
|
|
Storm damage
|
|
|
3,702
|
|
|
|
477
|
|
|
|
4,179
|
|
|
Total adjustments
before taxes
|
|
|
9,791
|
|
|
|
477
|
|
|
|
10,268
|
|
|
Income tax effect of
adjustments
|
|
|
(3,818)
|
|
|
|
(187)
|
|
|
|
(4,005)
|
|
|
Effect of adjustments,
net of income taxes
|
|
|
$
5,973
|
|
$
0.13
|
|
$
290
|
|
$
0.01
|
|
$
6,263
|
|
$
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
diluted earnings (loss)
per share (4)
|
|
|
$
62,448
|
|
$
1.35
|
|
$
(628)
|
|
$
(0.01)
|
|
$
61,820
|
|
$
1.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Net loss
attributable to Pre-Owned Stores operations was $0.15 per fully
diluted share in the nine months ended September 30,
2016.
|
|
Sonic Automotive,
Inc.
Results of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
New
Vehicles
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Better /
(Worse)
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
(In thousands,
except units and per unit data)
|
Reported:
|
|
|
|
|
|
|
|
Revenue
|
$
1,362,301
|
|
$
1,375,144
|
|
$
(12,843)
|
|
(0.9%)
|
Gross
profit
|
$
66,238
|
|
$
62,388
|
|
$
3,850
|
|
6.2%
|
Unit
sales
|
35,489
|
|
36,054
|
|
(565)
|
|
(1.6%)
|
Revenue per
unit
|
$
38,387
|
|
$
38,141
|
|
$
246
|
|
0.6%
|
Gross profit
per unit .
|
$
1,866
|
|
$
1,730
|
|
$
136
|
|
7.9%
|
Gross profit
as a % of revenue
|
4.9%
|
|
4.5%
|
|
40
|
bps
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
Better /
(Worse)
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
(In thousands,
except units and per unit data)
|
Reported:
|
|
|
|
|
|
|
|
Revenue
|
$
3,809,302
|
|
$
3,826,178
|
|
$
(16,876)
|
|
(0.4%)
|
Gross
profit
|
$
187,038
|
|
$
186,678
|
|
$
360
|
|
0.2%
|
Unit
sales
|
99,132
|
|
100,441
|
|
(1,309)
|
|
(1.3%)
|
Revenue per
unit
|
$
38,427
|
|
$
38,094
|
|
$
333
|
|
0.9%
|
Gross profit
per unit
|
$
1,887
|
|
$
1,859
|
|
$
28
|
|
1.5%
|
Gross profit
as a % of revenue
|
4.9%
|
|
4.9%
|
|
-
|
bps
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Better /
(Worse)
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
(In thousands,
except units and per unit data)
|
Same
Store:
|
|
|
|
|
|
|
|
Revenue
|
$
1,348,084
|
|
$
1,365,641
|
|
$
(17,557)
|
|
(1.3%)
|
Gross
profit
|
$
64,316
|
|
$
62,202
|
|
$
2,114
|
|
3.4%
|
Unit
sales
|
35,063
|
|
35,639
|
|
(576)
|
|
(1.6%)
|
Revenue per
unit
|
$
38,447
|
|
$
38,319
|
|
$
128
|
|
0.3%
|
Gross profit
per unit
|
$
1,834
|
|
$
1,745
|
|
$
89
|
|
5.1%
|
Gross profit
as a % of revenue
|
|
|
4.6%
|
|
20
|
bps
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
Better /
(Worse)
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
(In thousands,
except units and per unit data)
|
Same
Store:
|
|
|
|
|
|
|
|
Revenue
|
$
3,749,137
|
|
$
3,799,558
|
|
$
(50,421)
|
|
(1.3%)
|
Gross
profit
|
$
183,239
|
|
$
186,356
|
|
$
(3,117)
|
|
(1.7%)
|
Unit
sales
|
97,348
|
|
99,275
|
|
(1,927)
|
|
(1.9%)
|
Revenue per
unit
|
$
38,513
|
|
$
38,273
|
|
$
240
|
|
0.6%
|
Gross profit
per unit
|
$
1,882
|
|
$
1,877
|
|
$
5
|
|
0.3%
|
Gross profit as
a % of revenue
|
4.9%
|
|
4.9%
|
|
-
|
bps
|
|
Sonic Automotive,
Inc.
Results of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
Used
Vehicles
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Better /
(Worse)
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
(In thousands,
except units and per unit data)
|
Reported:
|
|
|
|
|
|
|
Revenue
|
$
659,724
|
|
$
660,974
|
|
$
(1,250)
|
|
(0.2%)
|
Gross
profit
|
$
39,145
|
|
$
39,622
|
|
$
(477)
|
|
(1.2%)
|
Unit
sales
|
30,841
|
|
30,933
|
|
(92)
|
|
(0.3%)
|
Revenue per
unit
|
$
21,391
|
|
$
21,368
|
|
$
23
|
|
0.1%
|
Gross profit
per unit
|
$
1,269
|
|
$
1,281
|
|
$
(12)
|
|
(0.9%)
|
Gross profit
as a % of revenue
|
5.9%
|
|
6.0%
|
|
(10)
|
|
bps
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
Better /
(Worse)
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
(In thousands,
except units and per unit data)
|
Reported:
|
|
|
|
|
|
|
Revenue
|
$
1,936,088
|
|
$
1,881,514
|
|
$
54,574
|
|
2.9%
|
Gross
profit
|
$
120,012
|
|
$
117,121
|
|
$
2,891
|
|
2.5%
|
Unit
sales
|
91,749
|
|
89,553
|
|
2,196
|
|
2.5%
|
Revenue per
unit
|
$
21,102
|
|
$
21,010
|
|
$
92
|
|
0.4%
|
Gross profit
per unit
|
$
1,308
|
|
$
1,308
|
|
$
-
|
|
0.0%
|
Gross profit
as a % of revenue
|
6.2%
|
|
6.2%
|
|
0
|
|
bps
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Better /
(Worse)
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
(In thousands,
except units and per unit data)
|
Same
Store:
|
|
|
|
|
|
|
Revenue
|
$
640,993
|
|
$
654,938
|
|
$
(13,945)
|
|
(2.1%)
|
Gross
profit
|
$
36,541
|
|
$
37,841
|
|
$
(1,300)
|
|
(3.4%)
|
Unit
sales
|
29,854
|
|
30,554
|
|
(700)
|
|
(2.3%)
|
Revenue per
unit
|
$
21,471
|
|
$
21,435
|
|
$
36
|
|
0.2%
|
Gross profit
per unit
|
$
1,224
|
|
$
1,238
|
|
$
(14)
|
|
(1.1%)
|
Gross profit
as a % of revenue
|
5.7%
|
|
5.8%
|
|
(10)
|
|
bps
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
Better /
(Worse)
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
(In thousands,
except units and per unit data)
|
Same
Store:
|
|
|
|
|
|
|
Revenue
|
$
1,867,337
|
|
$
1,867,041
|
|
$
296
|
|
0.0%
|
Gross
profit
|
$
111,547
|
|
$
112,153
|
|
$
(606)
|
|
(0.5%)
|
Unit
sales
|
88,211
|
|
88,592
|
|
(381)
|
|
(0.4%)
|
Revenue per
unit
|
$
21,169
|
|
$
21,075
|
|
$
94
|
|
0.4%
|
Gross profit
per unit
|
$
1,265
|
|
$
1,266
|
|
$
(1)
|
|
(0.1%)
|
Gross profit
as a % of revenue
|
6.0%
|
|
6.0%
|
|
0
|
|
bps
|
Sonic Automotive,
Inc.
Results of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
Wholesale
Vehicles
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Better /
(Worse)
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
(In thousands,
except units and per unit data)
|
Reported:
|
|
|
|
|
|
|
|
Revenue
|
$
43,098
|
|
$
70,522
|
|
$
(27,424)
|
|
(38.9%)
|
Gross profit
(loss)
|
$
(3,292)
|
|
$
(2,507)
|
|
$
(785)
|
|
(31.3%)
|
Unit
sales
|
7,832
|
|
10,377
|
|
(2,545)
|
|
(24.5%)
|
Revenue per
unit
|
$
5,503
|
|
$
6,796
|
|
$
(1,293)
|
|
(19.0%)
|
Gross profit
(loss) per unit
|
$
(420)
|
|
$
(242)
|
|
$
(178)
|
|
(73.6%)
|
Gross profit
(loss) as a % of revenue
|
(7.6%)
|
|
(3.6%)
|
|
(400)
|
|
bps
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
Better /
(Worse)
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
(In thousands,
except units and per unit data)
|
Reported:
|
|
|
|
|
|
|
|
Revenue
|
$
130,174
|
|
$
153,141
|
|
$
(22,967)
|
|
(15.0%)
|
Gross profit
(loss)
|
$
(6,381)
|
|
$
(5,425)
|
|
$
(956)
|
|
(17.6%)
|
Unit
sales
|
23,922
|
|
26,012
|
|
(2,090)
|
|
(8.0%)
|
Revenue per
unit .
|
$
5,442
|
|
$
5,887
|
|
$
(445)
|
|
(7.6%)
|
Gross profit
(loss) per unit
|
$
(267)
|
|
$
(209)
|
|
$
(58)
|
|
(27.8%)
|
Gross profit
(loss) as a % of revenue
|
(4.9%)
|
|
(3.5%)
|
|
(140)
|
|
bps
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Better /
(Worse)
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
(In thousands,
except units and per unit data)
|
Same
Store:
|
|
|
|
|
|
|
|
Revenue
|
$
41,946
|
|
$
69,898
|
|
$
(27,952)
|
|
(40.0%)
|
Gross profit
(loss)
|
$
(3,069)
|
|
$
(2,382)
|
|
$
(687)
|
|
(28.8%)
|
Unit
sales
|
7,572
|
|
10,240
|
|
(2,668)
|
|
(26.1%)
|
Revenue per
unit
|
$
5,540
|
|
$
6,826
|
|
$
(1,286)
|
|
(18.8%)
|
Gross profit
(loss) per unit
|
$
(405)
|
|
$
(233)
|
|
$
(172)
|
|
(73.8%)
|
Gross profit
(loss) as a % of revenue
|
(7.3%)
|
|
(3.4%)
|
|
(390)
|
|
bps
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
Better /
(Worse)
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
(In thousands,
except units and per unit data)
|
Same
Store:
|
|
|
|
|
|
|
|
Revenue
|
$
126,330
|
|
$
152,022
|
|
$
(25,692)
|
|
(16.9%)
|
Gross profit
(loss)
|
$
(6,042)
|
|
$
(5,222)
|
|
$
(820)
|
|
(15.7%)
|
Unit
sales
|
23,111
|
|
25,671
|
|
(2,560)
|
|
(10.0%)
|
Revenue per
unit
|
$
5,466
|
|
$
5,922
|
|
$
(456)
|
|
(7.7%)
|
Gross profit
(loss) per unit
|
$
(261)
|
|
$
(203)
|
|
$
(58)
|
|
(28.6%)
|
Gross profit
(loss) as a % of revenue
|
(4.8%)
|
|
(3.4%)
|
|
(140)
|
|
bps
|
Sonic Automotive,
Inc.
Results of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
Parts, Service
and Collision Repair ("Fixed Operations")
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Better /
(Worse)
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
Reported:
|
(In
thousands)
|
Revenue
|
|
|
|
|
|
|
|
Customer pay
|
$
137,850
|
|
$
146,365
|
|
$
(8,515)
|
|
(5.8%)
|
Warranty
|
70,575
|
|
60,388
|
|
10,187
|
|
16.9%
|
Wholesale
parts
|
40,927
|
|
44,202
|
|
(3,275)
|
|
(7.4%)
|
Internal, sublet and
other
|
98,365
|
|
110,754
|
|
(12,389)
|
|
(11.2%)
|
Total
|
$
347,717
|
|
$
361,709
|
|
$
(13,992)
|
|
(3.9%)
|
Gross profit
|
|
|
|
|
|
|
|
Customer pay
|
$
74,302
|
|
$
79,153
|
|
$
(4,851)
|
|
(6.1%)
|
Warranty
|
38,821
|
|
32,176
|
|
6,645
|
|
20.7%
|
Wholesale
parts
|
6,958
|
|
7,566
|
|
(608)
|
|
(8.0%)
|
Internal, sublet and
other
|
47,589
|
|
51,108
|
|
(3,519)
|
|
(6.9%)
|
Total
|
$
167,670
|
|
$
170,003
|
|
$
(2,333)
|
|
(1.4%)
|
Gross profit as a % of
revenue
|
|
|
|
|
|
|
|
Customer pay
|
53.9%
|
|
54.1%
|
|
(20)
|
|
bps
|
Warranty
|
55.0%
|
|
53.3%
|
|
170
|
|
bps
|
Wholesale
parts
|
17.0%
|
|
17.1%
|
|
(10)
|
|
bps
|
Internal, sublet and
other
|
48.4%
|
|
46.1%
|
|
230
|
|
bps
|
Total
|
48.2%
|
|
47.0%
|
|
120
|
|
bps
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
Better /
(Worse)
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
Reported:
|
(In
thousands)
|
Revenue
|
|
|
|
|
|
|
|
Customer
pay
|
$
415,179
|
|
$
443,007
|
|
$
(27,828)
|
|
(6.3%)
|
Warranty
|
213,155
|
|
172,759
|
|
40,396
|
|
23.4%
|
Wholesale
parts
|
127,014
|
|
133,533
|
|
(6,519)
|
|
(4.9%)
|
Internal, sublet and
other
|
305,525
|
|
309,794
|
|
(4,269)
|
|
(1.4%)
|
Total
|
$
1,060,873
|
|
$
1,059,093
|
|
$
1,780
|
|
0.2%
|
Gross profit
|
|
|
|
|
|
|
|
Customer pay
|
$
222,086
|
|
$
240,833
|
|
$
(18,747)
|
|
(7.8%)
|
Warranty
|
117,809
|
|
92,951
|
|
24,858
|
|
26.7%
|
Wholesale
parts
|
21,839
|
|
23,305
|
|
(1,466)
|
|
(6.3%)
|
Internal, sublet and
other
|
148,351
|
|
147,137
|
|
1,214
|
|
0.8%
|
Total
|
$
510,085
|
|
$
504,226
|
|
$
5,859
|
|
1.2%
|
Gross profit as a % of
revenue
|
|
|
|
|
|
|
|
Customer pay
|
53.5%
|
|
54.4%
|
|
(90)
|
|
bps
|
Warranty
|
55.3%
|
|
53.8%
|
|
150
|
|
bps
|
Wholesale
parts
|
17.2%
|
|
17.5%
|
|
(30)
|
|
bps
|
Internal, sublet and
other
|
48.6%
|
|
47.5%
|
|
110
|
|
bps
|
Total
|
48.1%
|
|
47.6%
|
|
50
|
|
bps
|
Sonic Automotive,
Inc.
Results of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
Parts, Service
and Collision Repair ("Fixed Operations")
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Better /
(Worse)
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
Same
Store:
|
(In
thousands)
|
Revenue
|
|
|
|
|
|
|
|
Customer pay
|
$
136,879
|
|
$
145,282
|
|
$
(8,403)
|
|
(5.8%)
|
Warranty
|
69,959
|
|
59,924
|
|
10,035
|
|
16.7%
|
Wholesale
parts
|
40,790
|
|
43,950
|
|
(3,160)
|
|
(7.2%)
|
Internal, sublet and
other
|
96,716
|
|
109,740
|
|
(13,024)
|
|
(11.9%)
|
Total
|
$
344,344
|
|
$
358,896
|
|
$
(14,552)
|
|
(4.1%)
|
Gross profit
|
|
|
|
|
|
|
|
Customer pay
|
$
73,781
|
|
$
78,528
|
|
$
(4,747)
|
|
(6.0%)
|
Warranty
|
38,508
|
|
31,893
|
|
6,615
|
|
20.7%
|
Wholesale
parts
|
6,935
|
|
7,525
|
|
(590)
|
|
(7.8%)
|
Internal, sublet and
other
|
46,632
|
|
50,388
|
|
(3,756)
|
|
(7.5%)
|
Total
|
$
165,856
|
|
$
168,334
|
|
$
(2,478)
|
|
(1.5%)
|
Gross profit as a % of
revenue
|
|
|
|
|
|
|
|
Customer pay
|
53.9%
|
|
54.1%
|
|
(20)
|
|
bps
|
Warranty
|
55.0%
|
|
53.2%
|
|
180
|
|
bps
|
Wholesale
parts
|
17.0%
|
|
17.1%
|
|
(10)
|
|
bps
|
Internal, sublet and
other
|
48.2%
|
|
45.9%
|
|
230
|
|
bps
|
Total
|
48.2%
|
|
46.9%
|
|
130
|
|
bps
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
Better /
(Worse)
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
Same
Store:
|
(In
thousands)
|
Revenue
|
|
|
|
|
|
|
|
Customer pay
|
$
411,036
|
|
$
439,677
|
|
$
(28,641)
|
|
(6.5%)
|
Warranty
|
210,795
|
|
171,379
|
|
39,416
|
|
23.0%
|
Wholesale
parts
|
126,069
|
|
132,758
|
|
(6,689)
|
|
(5.0%)
|
Internal, sublet and
other
|
297,807
|
|
307,475
|
|
(9,668)
|
|
(3.1%)
|
Total
|
$
1,045,707
|
|
$
1,051,289
|
|
$
(5,582)
|
|
(0.5%)
|
Gross profit
|
|
|
|
|
|
|
|
Customer pay
|
$
219,890
|
|
$
238,929
|
|
$
(19,039)
|
|
(8.0%)
|
Warranty
|
116,493
|
|
92,221
|
|
24,272
|
|
26.3%
|
Wholesale
parts
|
21,638
|
|
23,181
|
|
(1,543)
|
|
(6.7%)
|
Internal, sublet and
other
|
144,116
|
|
145,196
|
|
(1,080)
|
|
(0.7%)
|
Total
|
$
502,137
|
|
$
499,527
|
|
$
2,610
|
|
0.5%
|
Gross profit as a % of
revenue
|
|
|
|
|
|
|
|
Customer pay
|
53.5%
|
|
54.3%
|
|
(80)
|
|
bps
|
Warranty
|
55.3%
|
|
53.8%
|
|
150
|
|
bps
|
Wholesale
parts
|
17.2%
|
|
17.5%
|
|
(30)
|
|
bps
|
Internal, sublet and
other
|
48.4%
|
|
47.2%
|
|
120
|
|
bps
|
Total
|
48.0%
|
|
47.5%
|
|
50
|
|
bps
|
Sonic Automotive,
Inc.
Results of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
Finance,
Insurance and Other, Net ("F&I")
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Better /
(Worse)
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
(In thousands,
except per unit data)
|
Reported:
|
|
|
|
|
|
|
|
Revenue
|
$
92,861
|
|
$
89,579
|
|
$
3,282
|
|
3.7%
|
Gross profit per
retail unit (excludes fleet)
|
$
1,408
|
|
$
1,344
|
|
$
64
|
|
4.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
Better /
(Worse)
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
(In thousands,
except per unit data)
|
Reported:
|
|
|
|
|
|
|
|
Revenue
|
$
262,832
|
|
$
254,940
|
|
$
7,892
|
|
3.1%
|
Gross profit per
retail unit (excludes fleet)
|
$
1,389
|
|
$
1,351
|
|
$
38
|
|
2.8%
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Better /
(Worse)
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
(In thousands,
except per unit data)
|
Same
Store:
|
|
|
|
|
|
|
|
Revenue
|
$
90,602
|
|
$
88,254
|
|
$
2,348
|
|
2.7%
|
Gross profit per
retail unit (excludes fleet)
|
$
1,404
|
|
$
1,340
|
|
$
64
|
|
4.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
Better /
(Worse)
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
(In thousands,
except per unit data)
|
Same
Store:
|
|
|
|
|
|
|
|
Revenue
|
$
253,957
|
|
$
251,204
|
|
$
2,753
|
|
1.1%
|
Gross profit per
retail unit (excludes fleet)
|
$
1,381
|
|
$
1,346
|
|
$
35
|
|
2.6%
|
Sonic Automotive,
Inc.
Results of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
Selling,
General and Administrative ("SG&A") Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Better /
(Worse)
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
(In
thousands)
|
Reported:
|
|
|
|
|
|
|
|
Compensation
|
$
172,691
|
|
$
171,287
|
|
$
(1,404)
|
|
(0.8%)
|
Advertising
|
15,846
|
|
14,987
|
|
(859)
|
|
(5.7%)
|
Rent
|
17,711
|
|
18,037
|
|
326
|
|
1.8%
|
Other
|
77,726
|
|
77,830
|
|
104
|
|
0.1%
|
Total SG&A
expenses
|
$
283,974
|
|
$
282,141
|
|
$
(1,833)
|
|
(0.6%)
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Storm
damage
|
$
(2,971)
|
|
$
2,341
|
|
|
|
|
Legal and other
accruals
|
(959)
|
|
-
|
|
|
|
|
Gain on
disposal
|
8,489
|
|
-
|
|
|
|
|
Total SG&A
adjustments
|
$
4,559
|
|
$
2,341
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted:
|
|
|
|
|
|
|
|
Total adjusted
SG&A expenses
|
$
288,533
|
|
$
284,482
|
|
$
(4,051)
|
|
(1.4%)
|
|
|
|
|
|
|
|
|
Reported:
|
|
|
|
|
|
|
|
SG&A expenses as
a % of gross profit
|
|
|
|
|
|
|
Compensation
|
47.6%
|
|
47.7%
|
|
10
|
|
bps
|
Advertising
|
4.4%
|
|
4.2%
|
|
(20)
|
|
bps
|
Rent
|
4.9%
|
|
5.0%
|
|
10
|
|
bps
|
Other
|
21.4%
|
|
21.7%
|
|
30
|
|
bps
|
Total SG&A
expenses as a % of gross profit
|
78.3%
|
|
78.6%
|
|
30
|
|
bps
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Storm
damage
|
(0.8%)
|
|
0.6%
|
|
|
|
|
Legal and other
accruals
|
(0.3%)
|
|
0.0%
|
|
|
|
|
Gain on
disposal
|
2.4%
|
|
0.0%
|
|
|
|
|
Total effect of
adjustments
|
1.3%
|
|
0.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted:
|
|
|
|
|
|
|
|
Total adjusted
SG&A as a % of gross profit
|
79.6%
|
|
79.2%
|
|
(40)
|
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sonic Automotive,
Inc.
Results of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
Selling,
General and Administrative ("SG&A") Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
Better /
(Worse)
|
|
2017
|
|
2016
|
|
Change
|
|
%
Change
|
|
(In
thousands)
|
Reported:
|
|
|
|
|
|
|
Compensation
|
$
520,420
|
|
$
506,894
|
|
$
(13,526)
|
|
(2.7%)
|
Advertising
|
46,448
|
|
45,834
|
|
(614)
|
|
(1.3%)
|
Rent
|
55,309
|
|
55,265
|
|
(44)
|
|
(0.1%)
|
Other
|
247,962
|
|
235,728
|
|
(12,234)
|
|
(5.2%)
|
Total SG&A
expenses
|
$
870,139
|
|
$
843,721
|
|
$
(26,418)
|
|
(3.1%)
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Storm
damage
|
$
(9,971)
|
|
$
(3,702)
|
|
|
|
|
Legal and other
accruals
|
(810)
|
|
-
|
|
|
|
|
Gain on
disposal
|
8,489
|
|
-
|
|
|
|
|
Lease exit
adjustments
|
(992)
|
|
-
|
|
|
|
|
Total SG&A
adjustments
|
$
(3,284)
|
|
$
(3,702)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted:
|
|
|
|
|
|
|
|
Total adjusted
SG&A expenses
|
$
866,855
|
|
$
840,019
|
|
$
(26,836)
|
|
(3.2%)
|
|
|
|
|
|
|
|
|
Reported:
|
|
|
|
|
|
|
|
SG&A expenses as
a % of gross profit
|
|
|
|
|
|
|
Compensation
|
48.5%
|
|
47.9%
|
|
(60)
|
|
bps
|
Advertising
|
4.3%
|
|
4.3%
|
|
0
|
|
bps
|
Rent
|
5.2%
|
|
5.2%
|
|
0
|
|
bps
|
Other
|
23.0%
|
|
22.4%
|
|
(60)
|
|
bps
|
Total SG&A
expenses as a % of gross profit
|
81.0%
|
|
79.8%
|
|
(120)
|
|
bps
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Storm
damage
|
(0.9%)
|
|
(0.4%)
|
|
|
|
|
Legal and other
accruals
|
(0.1%)
|
|
0.0%
|
|
|
|
|
Gain on
disposal
|
0.8%
|
|
0.0%
|
|
|
|
|
Lease exit
adjustments
|
(0.1%)
|
|
0.0%
|
|
|
|
|
Total effect of
adjustments
|
(0.3%)
|
|
(0.4%)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted:
|
|
|
|
|
|
|
|
Total adjusted
SG&A as a % of gross profit
|
80.7%
|
|
79.4%
|
|
(130)
|
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/sonic-automotive-inc-reports-third-quarter-results---record-fi-results-and-total-gross-profit-300541862.html
SOURCE Sonic Automotive, Inc.