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10/28/08
Sonic Automotive, Inc. Announces Third Quarter Results
CHARLOTTE, N.C., Oct. 28 /PRNewswire-FirstCall/ -- Sonic Automotive, Inc. (NYSE: SAH), a leader in automotive retailing, today announced a third quarter 2008 loss from continuing operations of $11.4 million, or $0.24 per diluted share, compared to earnings of $30.9 million, or $0.68 per diluted share, in the prior year period. Included in the current quarter's results from continuing operations is an after-tax charge of approximately $21.0 million, or $0.49 per diluted share, related primarily to franchise asset and property impairment costs. The Company also recorded an after-tax charge of approximately $11.5 million, or $0.27 per diluted share, also primarily related to franchise asset and property impairment costs in our loss from discontinued operations in the current quarter.
In addition to these charges, also included in the current quarter's results from continuing operations is an estimated approximately $0.08 per diluted share negative impact related to property damage and business disruption caused by hurricane activity in the greater Houston area.
Mr. David Cosper, the Company's Chief Financial Officer, stated, "In light of the current economic conditions and the expectation of lower profitability at a small number of our domestic dealerships, we have written down the value of the franchise assets assigned to these dealerships. In addition, we have eliminated various planned facility projects and revised our plans for several facilities that we had vacated. As a result, we have written off certain costs that had already been incurred on those projects. We are in compliance with all debt covenants at the end of the quarter and expect to remain in compliance going forward. We have also performed an interim test of the recoverability of our goodwill and have determined that there is no impairment of the goodwill assets recorded on our balance sheet."
Scott Smith, the Company's President and Chief Strategic Officer, stated, "The current softness in consumer demand is to be expected given the turmoil in the credit markets and the amount of economic uncertainty we are currently experiencing. We remain focused on those things we can control and that we believe add value for our shareholders. We continue to aggressively reduce costs and manage capital expenditures as we move forward with our used vehicle and parts and service initiatives. As a result of the current economic uncertainty, we are projecting diluted earnings per share from continuing operations for the fourth quarter of $0.10 to $0.20."
Presentation materials for the Company's earnings conference call at 11:00 A.M. (Eastern) on October 28, 2008 can be accessed on the Company's website at www.sonicautomotive.com by clicking on the "For Investors" tab and choosing "Webcasts & Presentations" on the right side of the screen.
To access the live broadcast of the conference call over the Internet go to: www.sonicautomotive.com.
A live audio of the conference call will be accessible to the public by calling (877) 791-3416. International callers dial (706) 643-0958. Callers should dial in approximately 10 minutes before the call begins.
A conference call replay will be available one hour following the call for seven days and can be accessed by calling: (800) 642-1687 (domestic) or (706) 645-9291 (international), conference call ID #67717439.
About Sonic Automotive
Sonic Automotive, Inc., a Fortune 300 company based in Charlotte, N.C., is one of the largest automotive retailers in the United States operating 169 franchises. Sonic can be reached on the Web at www.sonicautomotive.com.
Included herein are forward-looking statements, including statements with respect to expected diluted earnings per share from continuing operations, debt compliance expectations, profitability at certain dealerships, cost reduction plans and capital expenditure reduction plans. 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, risks associated with acquisitions and the risk factors described in the Company's quarterly report on Form 10-Q for the quarter ended June 30, 2008. The Company does not undertake any obligation to update forward-looking information.
Sonic Automotive, Inc.
Results of Operations (Unaudited)
(in thousands, except per share, unit data and percentage amounts)
Three Months Ended Nine Months Ended
9/30/2008 9/30/2007 9/30/2008 9/30/2007
Revenues
New retail vehicles $987,520 $1,204,343 $3,016,719 $3,360,848
Fleet vehicles 54,863 98,509 282,962 288,344
Total new vehicles 1,042,383 1,302,852 3,299,681 3,649,192
Used vehicles 339,498 363,785 1,088,808 1,034,375
Wholesale vehicles 72,316 100,201 239,118 304,173
Total vehicles 1,454,197 1,766,838 4,627,607 4,987,740
Parts, service and
collision repair 284,132 292,044 871,713 853,650
Finance, insurance and
other 46,512 53,600 150,148 152,729
Total revenues 1,784,841 2,112,482 5,649,468 5,994,119
Total gross profit 285,693 323,963 899,205 933,327
SG&A expenses (267,961) (240,243) (749,651) (701,621)
Depreciation (8,912) (5,338) (25,656) (19,163)
Operating income 8,820 78,382 123,898 212,543
Interest expense, floor
plan (9,744) (16,660) (34,467) (49,002)
Interest expense, other (16,661) (10,898) (43,439) (28,446)
Other (expense) / income (10) (5) 87 85
Income / (loss) from
continuing operations
before taxes (17,595) 50,819 46,079 135,180
Income taxes 6,214 (19,903) (19,256) (53,159)
Income / (loss) from
continuing operations (11,381) 30,916 26,823 82,021
Discontinued operations:
Loss from operations and
the sale of discontinued
franchises (19,954) (6,870) (38,790) (13,651)
Income tax benefit 5,986 2,061 11,637 4,096
Loss from discontinued
operations (13,968) (4,809) (27,153) (9,555)
Net income/ (loss) $(25,349) $26,107 $(330) $72,466
Diluted:
Weighted average common
shares outstanding 42,900 46,978 43,387 47,631
Earnings / (loss) per
share from continuing
operations ($0.24) $0.68 $0.68 $1.79
Loss per share from
discontinued operations ($0.33) ($0.10) ($0.63) ($0.20)
Earnings / (loss) per
share ($0.57) $0.58 $0.05 $1.59
Gross Margin Data
(Continuing Operations):
Retail new vehicles 7.0% 7.5% 7.3% 7.4%
Fleet vehicles 4.5% 1.5% 2.2% 2.1%
Total new vehicles 6.9% 7.0% 6.8% 7.0%
Used vehicles retail 8.0% 8.8% 8.5% 9.2%
Total vehicles retail 7.2% 7.4% 7.3% 7.5%
Wholesale vehicles (1.9%) (1.5%) (1.8%) (0.9%)
Parts, service and
collision repair 49.9% 50.7% 49.9% 50.6%
Finance, insurance and
other 100.0% 100.0% 100.0% 100.0%
Overall gross margin 16.0% 15.3% 15.9% 15.6%
SG&A Expenses (Continuing
Operations):
Personnel $128,167 $133,930 $400,115 $398,201
Advertising 14,489 17,294 48,018 48,416
Facility rent 28,655 24,890 75,073 74,730
Other 96,650 64,129 226,445 180,274
Total $267,961 $240,243 $749,651 $701,621
SG&A Expenses as % of
Gross Profit
Personnel 44.9% 41.3% 44.5% 42.7%
Advertising 5.1% 5.3% 5.3% 5.2%
Facility rent 10.0% 7.7% 8.3% 8.0%
Other 33.8% 19.9% 25.3% 19.3%
Total 93.8% 74.2% 83.4% 75.2%
Operating Margin % 0.5% 3.7% 2.2% 3.5%
Unit Data (Continuing Three Months Ended Nine Months Ended
Operations): 9/30/2008 9/30/2007 9/30/2008 9/30/2007
New retail units 29,076 35,686 90,104 99,707
Fleet units 2,816 4,272 11,729 12,685
Used units 16,994 18,056 54,260 51,758
Wholesale units 9,563 11,230 30,377 33,869
Average price per unit:
New retail vehicles $33,963 $33,748 $33,480 $33,707
Fleet vehicles 19,483 23,059 24,125 22,731
Used vehicles 19,978 20,148 20,066 19,985
Wholesale vehicles 7,562 8,923 7,872 8,981
Other Data:
Same store revenue
percentage changes:
New retail (18.9%) (14.2%)
Fleet (44.3%) (10.3%)
Total New Vehicles (20.8%) (13.9%)
Used (7.7%) 1.6%
Parts, service and
collision repair (3.8%) (1.3%)
Finance, insurance
and other (13.6%) (3.9%)
Total (16.4%) (9.7%)
Balance Sheet Data:
9/30/2008 12/31/2007
ASSETS
Current Assets:
Cash and cash
equivalents $7,340 $16,514
Receivables, net 214,625 347,309
Inventories 1,030,704 1,093,017
Assets held for sale 110,815 87,342
Other current assets 34,836 35,879
Total current assets 1,398,320 1,580,061
Property and Equipment,
Net 381,950 286,591
Goodwill, Net 1,254,403 1,276,074
Other Intangibles, Net 95,974 111,342
Other Assets 21,705 28,676
TOTAL ASSETS $3,152,352 $3,282,744
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current Liabilities:
Floor plan notes payable $991,571 $1,125,670
Other current
liabilities 223,288 247,658
Liabilities associated
with assets held for
sale 42,928 48,592
Current maturities of
long-term debt 131,705 4,197
Total current
liabilities 1,389,492 1,426,117
LONG-TERM DEBT 638,970 697,800
OTHER LONG-TERM
LIABILITIES 222,154 227,999
STOCKHOLDERS' EQUITY 901,736 930,828
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $3,152,352 $3,282,744
Balance Sheet Ratios:
Current Ratio 1.01 1.11
Debt to Total Capital,
Net of Cash 45.8% 42.4%
SOURCE Sonic Automotive, Inc.
CONTACT:
David Cosper
Chief Financial Officer
+1-704-566-2400
or
Greg Young
Vice President of Finance
+1-704-566-2489
both of Sonic Automotive, Inc.
top
CHARLOTTE, N.C., Oct. 28 /PRNewswire-FirstCall/ -- Sonic Automotive, Inc. (NYSE: SAH), a leader in automotive retailing, today announced a third quarter 2008 loss from continuing operations of $11.4 million, or $0.24 per diluted share, compared to earnings of $30.9 million, or $0.68 per diluted share, in the prior year period. Included in the current quarter's results from continuing operations is an after-tax charge of approximately $21.0 million, or $0.49 per diluted share, related primarily to franchise asset and property impairment costs. The Company also recorded an after-tax charge of approximately $11.5 million, or $0.27 per diluted share, also primarily related to franchise asset and property impairment costs in our loss from discontinued operations in the current quarter.
In addition to these charges, also included in the current quarter's results from continuing operations is an estimated approximately $0.08 per diluted share negative impact related to property damage and business disruption caused by hurricane activity in the greater Houston area.
Mr. David Cosper, the Company's Chief Financial Officer, stated, "In light of the current economic conditions and the expectation of lower profitability at a small number of our domestic dealerships, we have written down the value of the franchise assets assigned to these dealerships. In addition, we have eliminated various planned facility projects and revised our plans for several facilities that we had vacated. As a result, we have written off certain costs that had already been incurred on those projects. We are in compliance with all debt covenants at the end of the quarter and expect to remain in compliance going forward. We have also performed an interim test of the recoverability of our goodwill and have determined that there is no impairment of the goodwill assets recorded on our balance sheet."
Scott Smith, the Company's President and Chief Strategic Officer, stated, "The current softness in consumer demand is to be expected given the turmoil in the credit markets and the amount of economic uncertainty we are currently experiencing. We remain focused on those things we can control and that we believe add value for our shareholders. We continue to aggressively reduce costs and manage capital expenditures as we move forward with our used vehicle and parts and service initiatives. As a result of the current economic uncertainty, we are projecting diluted earnings per share from continuing operations for the fourth quarter of $0.10 to $0.20."
Presentation materials for the Company's earnings conference call at 11:00 A.M. (Eastern) on October 28, 2008 can be accessed on the Company's website at www.sonicautomotive.com by clicking on the "For Investors" tab and choosing "Webcasts & Presentations" on the right side of the screen.
To access the live broadcast of the conference call over the Internet go to: www.sonicautomotive.com.
A live audio of the conference call will be accessible to the public by calling (877) 791-3416. International callers dial (706) 643-0958. Callers should dial in approximately 10 minutes before the call begins.
A conference call replay will be available one hour following the call for seven days and can be accessed by calling: (800) 642-1687 (domestic) or (706) 645-9291 (international), conference call ID #67717439.
About Sonic Automotive
Sonic Automotive, Inc., a Fortune 300 company based in Charlotte, N.C., is one of the largest automotive retailers in the United States operating 169 franchises. Sonic can be reached on the Web at www.sonicautomotive.com.
Included herein are forward-looking statements, including statements with respect to expected diluted earnings per share from continuing operations, debt compliance expectations, profitability at certain dealerships, cost reduction plans and capital expenditure reduction plans. 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, risks associated with acquisitions and the risk factors described in the Company's quarterly report on Form 10-Q for the quarter ended June 30, 2008. The Company does not undertake any obligation to update forward-looking information.
Sonic Automotive, Inc.
Results of Operations (Unaudited)
(in thousands, except per share, unit data and percentage amounts)
Three Months Ended Nine Months Ended
9/30/2008 9/30/2007 9/30/2008 9/30/2007
Revenues
New retail vehicles $987,520 $1,204,343 $3,016,719 $3,360,848
Fleet vehicles 54,863 98,509 282,962 288,344
Total new vehicles 1,042,383 1,302,852 3,299,681 3,649,192
Used vehicles 339,498 363,785 1,088,808 1,034,375
Wholesale vehicles 72,316 100,201 239,118 304,173
Total vehicles 1,454,197 1,766,838 4,627,607 4,987,740
Parts, service and
collision repair 284,132 292,044 871,713 853,650
Finance, insurance and
other 46,512 53,600 150,148 152,729
Total revenues 1,784,841 2,112,482 5,649,468 5,994,119
Total gross profit 285,693 323,963 899,205 933,327
SG&A expenses (267,961) (240,243) (749,651) (701,621)
Depreciation (8,912) (5,338) (25,656) (19,163)
Operating income 8,820 78,382 123,898 212,543
Interest expense, floor
plan (9,744) (16,660) (34,467) (49,002)
Interest expense, other (16,661) (10,898) (43,439) (28,446)
Other (expense) / income (10) (5) 87 85
Income / (loss) from
continuing operations
before taxes (17,595) 50,819 46,079 135,180
Income taxes 6,214 (19,903) (19,256) (53,159)
Income / (loss) from
continuing operations (11,381) 30,916 26,823 82,021
Discontinued operations:
Loss from operations and
the sale of discontinued
franchises (19,954) (6,870) (38,790) (13,651)
Income tax benefit 5,986 2,061 11,637 4,096
Loss from discontinued
operations (13,968) (4,809) (27,153) (9,555)
Net income/ (loss) $(25,349) $26,107 $(330) $72,466
Diluted:
Weighted average common
shares outstanding 42,900 46,978 43,387 47,631
Earnings / (loss) per
share from continuing
operations ($0.24) $0.68 $0.68 $1.79
Loss per share from
discontinued operations ($0.33) ($0.10) ($0.63) ($0.20)
Earnings / (loss) per
share ($0.57) $0.58 $0.05 $1.59
Gross Margin Data
(Continuing Operations):
Retail new vehicles 7.0% 7.5% 7.3% 7.4%
Fleet vehicles 4.5% 1.5% 2.2% 2.1%
Total new vehicles 6.9% 7.0% 6.8% 7.0%
Used vehicles retail 8.0% 8.8% 8.5% 9.2%
Total vehicles retail 7.2% 7.4% 7.3% 7.5%
Wholesale vehicles (1.9%) (1.5%) (1.8%) (0.9%)
Parts, service and
collision repair 49.9% 50.7% 49.9% 50.6%
Finance, insurance and
other 100.0% 100.0% 100.0% 100.0%
Overall gross margin 16.0% 15.3% 15.9% 15.6%
SG&A Expenses (Continuing
Operations):
Personnel $128,167 $133,930 $400,115 $398,201
Advertising 14,489 17,294 48,018 48,416
Facility rent 28,655 24,890 75,073 74,730
Other 96,650 64,129 226,445 180,274
Total $267,961 $240,243 $749,651 $701,621
SG&A Expenses as % of
Gross Profit
Personnel 44.9% 41.3% 44.5% 42.7%
Advertising 5.1% 5.3% 5.3% 5.2%
Facility rent 10.0% 7.7% 8.3% 8.0%
Other 33.8% 19.9% 25.3% 19.3%
Total 93.8% 74.2% 83.4% 75.2%
Operating Margin % 0.5% 3.7% 2.2% 3.5%
Unit Data (Continuing Three Months Ended Nine Months Ended
Operations): 9/30/2008 9/30/2007 9/30/2008 9/30/2007
New retail units 29,076 35,686 90,104 99,707
Fleet units 2,816 4,272 11,729 12,685
Used units 16,994 18,056 54,260 51,758
Wholesale units 9,563 11,230 30,377 33,869
Average price per unit:
New retail vehicles $33,963 $33,748 $33,480 $33,707
Fleet vehicles 19,483 23,059 24,125 22,731
Used vehicles 19,978 20,148 20,066 19,985
Wholesale vehicles 7,562 8,923 7,872 8,981
Other Data:
Same store revenue
percentage changes:
New retail (18.9%) (14.2%)
Fleet (44.3%) (10.3%)
Total New Vehicles (20.8%) (13.9%)
Used (7.7%) 1.6%
Parts, service and
collision repair (3.8%) (1.3%)
Finance, insurance
and other (13.6%) (3.9%)
Total (16.4%) (9.7%)
Balance Sheet Data:
9/30/2008 12/31/2007
ASSETS
Current Assets:
Cash and cash
equivalents $7,340 $16,514
Receivables, net 214,625 347,309
Inventories 1,030,704 1,093,017
Assets held for sale 110,815 87,342
Other current assets 34,836 35,879
Total current assets 1,398,320 1,580,061
Property and Equipment,
Net 381,950 286,591
Goodwill, Net 1,254,403 1,276,074
Other Intangibles, Net 95,974 111,342
Other Assets 21,705 28,676
TOTAL ASSETS $3,152,352 $3,282,744
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current Liabilities:
Floor plan notes payable $991,571 $1,125,670
Other current
liabilities 223,288 247,658
Liabilities associated
with assets held for
sale 42,928 48,592
Current maturities of
long-term debt 131,705 4,197
Total current
liabilities 1,389,492 1,426,117
LONG-TERM DEBT 638,970 697,800
OTHER LONG-TERM
LIABILITIES 222,154 227,999
STOCKHOLDERS' EQUITY 901,736 930,828
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $3,152,352 $3,282,744
Balance Sheet Ratios:
Current Ratio 1.01 1.11
Debt to Total Capital,
Net of Cash 45.8% 42.4%
SOURCE Sonic Automotive, Inc.
CONTACT:
David Cosper
Chief Financial Officer
+1-704-566-2400
or
Greg Young
Vice President of Finance
+1-704-566-2489
both of Sonic Automotive, Inc.
10/28/08
Sonic Automotive, Inc. Declares Quarterly Cash Dividend
CHARLOTTE, N.C., Oct. 28 /PRNewswire-FirstCall/ -- Sonic Automotive, Inc. (NYSE: SAH), a leader in automotive retailing, today announced that its Board of Directors approved a quarterly dividend of $0.12 per share payable in cash for shareholders of record on December 15, 2008. The dividend will be payable January 15, 2009.
Sonic Automotive, Inc., a Fortune 300 company based in Charlotte, N.C., is one of the largest automotive retailers in the United States operating 169 franchises. Sonic can be reached on the web at www.sonicautomotive.com.
Included herein is a forward-looking statement pertaining to an anticipated cash dividend to shareholders. There are many factors that affect 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 view, including without limitation, economic conditions, risks associated with acquisitions and the risk factors described in the Company's quarterly report on Form 10-Q for the quarter ended June 30, 2008. The Company does not undertake any obligation to update forward-looking information.
SOURCE Sonic Automotive, Inc.
CONTACT:
David Cosper
Chief Financial Officer
+1-704-566-2400
or
Greg Young
Vice President of Finance
+1-704-566-2489
top
CHARLOTTE, N.C., Oct. 28 /PRNewswire-FirstCall/ -- Sonic Automotive, Inc. (NYSE: SAH), a leader in automotive retailing, today announced that its Board of Directors approved a quarterly dividend of $0.12 per share payable in cash for shareholders of record on December 15, 2008. The dividend will be payable January 15, 2009.
Sonic Automotive, Inc., a Fortune 300 company based in Charlotte, N.C., is one of the largest automotive retailers in the United States operating 169 franchises. Sonic can be reached on the web at www.sonicautomotive.com.
Included herein is a forward-looking statement pertaining to an anticipated cash dividend to shareholders. There are many factors that affect 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 view, including without limitation, economic conditions, risks associated with acquisitions and the risk factors described in the Company's quarterly report on Form 10-Q for the quarter ended June 30, 2008. The Company does not undertake any obligation to update forward-looking information.
SOURCE Sonic Automotive, Inc.
CONTACT:
David Cosper
Chief Financial Officer
+1-704-566-2400
or
Greg Young
Vice President of Finance
+1-704-566-2489
7/29/08
Sonic Automotive, Inc. Announces Second Quarter Results
CHARLOTTE, N.C., July 29 /PRNewswire-FirstCall/ -- Sonic Automotive, Inc. (NYSE: SAH), a leader in automotive retailing, today announced that second quarter 2008 earnings from continuing operations were $20.1 million, or $0.49 per diluted share, compared to $28.8 million, or $0.62 per diluted share, in the prior year period.
"This quarter's results are in line with our revised earnings target," said President and Chief Strategic Officer B. Scott Smith. "We have seen some improvement in our July business compared to the relatively weak industry experience the entire sector saw in June but the overall market remains challenged. We continue to see the benefit of the automotive retailing model and believe the changes we are making in light of the current economic environment will benefit our Company well into the future."
Presentation materials for the Company's earnings conference call at 11:00 A.M. (Eastern) on July 29, 2008 can be accessed on the Company's website at www.sonicautomotive.com by clicking on the "For Investors" tab and choosing "Webcasts & Presentations" on the right side of the screen.
To access the live broadcast of the conference call over the Internet go to: www.sonicautomotive.com
A live audio of the conference call will be accessible to the public by calling (877) 791-3416. International callers dial (706) 643-0958. Callers should dial in approximately 10 minutes before the call begins.
A conference call replay will be available one hour following the call for seven days and can be accessed by calling: (800) 642-1687 (domestic) or (706) 645-9291 (international), conference call ID #55356748.
About Sonic Automotive
Sonic Automotive, Inc., a Fortune 300 company based in Charlotte, N.C., is one of the largest automotive retailers in the United States operating 166 franchises. Sonic can be reached on the Web at www.sonicautomotive.com
Included herein are forward-looking statements, including statements with respect to July business activity. 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, risks associated with acquisitions and the risk factors described in the Company's quarterly report on Form 10-Q for the quarter ended March 31, 2008. The Company does not undertake any obligation to update forward-looking information.
Sonic Automotive, Inc.
Results of Operations (Unaudited)
(in thousands, except per share, unit data and percentage amounts)
Three Months Ended Six Months Ended
6/30/2008 6/30/2007 6/30/2008 6/30/2007
Revenues
New retail vehicles $1,049,472 $1,128,335 $2,029,199 $2,156,505
Fleet vehicles 120,507 101,030 228,099 189,835
Total new vehicles 1,169,979 1,229,365 2,257,298 2,346,340
Used vehicles 379,522 351,333 749,310 670,590
Wholesale vehicles 82,467 98,260 166,802 203,972
Total vehicles 1,631,968 1,678,958 3,173,410 3,220,902
Parts, service and
collision repair 294,608 283,478 587,581 561,606
Finance, insurance and
other 52,943 52,352 103,636 99,129
Total revenues 1,979,519 2,014,788 3,864,627 3,881,637
Total gross profit 310,755 313,697 613,512 609,364
SG&A expenses (242,042) (232,366) (481,690) (461,378)
Depreciation (8,879) (8,327) (16,744) (13,825)
Operating income 59,834 73,004 115,078 134,161
Interest expense, floor
plan (11,502) (16,645) (24,723) (32,342)
Interest expense, other (14,794) (8,871) (26,778) (17,548)
Other (expense) / income 26 74 97 90
Income from continuing
operations before taxes 33,564 47,562 63,674 84,361
Income taxes (13,431) (18,722) (25,470) (33,256)
Income from continuing
operations 20,133 28,840 38,204 51,105
Discontinued operations:
Loss from operations and
the sale of
discontinued franchises (13,319) (3,532) (18,836) (6,781)
Income tax benefit 3,997 1,060 5,651 2,035
Loss from discontinued
operations (9,322) (2,472) (13,185) (4,746)
Net income $10,811 $26,368 $25,019 $46,359
Diluted:
Weighted average common
shares outstanding 43,421 47,987 43,633 47,963
Earnings per share from
continuing operations $0.49 $0.62 $0.92 $1.11
Loss per share from
discontinued operations ($0.22) ($0.05) ($0.30) ($0.10)
Earnings per share $0.27 $0.57 $0.62 $1.01
Gross Margin Data (Continuing
Operations):
Retail new vehicles 7.5% 7.4% 7.4% 7.4%
Fleet vehicles 1.3% 2.6% 1.7% 2.4%
Total new vehicles 6.8% 7.0% 6.8% 7.0%
Used vehicles retail 8.5% 9.3% 8.7% 9.5%
Total vehicles retail 7.2% 7.5% 7.3% 7.6%
Wholesale vehicles (2.2%) (1.3%) (1.7%) (0.6%)
Parts, service and
collision repair 50.0% 50.8% 49.9% 50.5%
Finance, insurance and
other 100.0% 100.0% 100.0% 100.0%
Overall gross margin 15.7% 15.6% 15.9% 15.7%
SG&A Expenses (Continuing
Operations):
Personnel $136,924 $135,044 $271,948 $264,271
Advertising 17,224 16,039 33,529 31,122
Facility rent 21,410 24,880 46,419 49,840
Other 66,484 56,403 129,794 116,145
Total $242,042 $232,366 $481,690 $461,378
SG&A Expenses as % of
Gross Profit
Personnel 44.1% 43.0% 44.3% 43.4%
Advertising 5.5% 5.1% 5.5% 5.1%
Facility rent 6.9% 7.9% 7.6% 8.2%
Other 21.4% 18.1% 21.1% 19.0%
Total 77.9% 74.1% 78.5% 75.7%
Operating Margin % 3.0% 3.6% 3.0% 3.5%
Unit Data (Continuing
Operations):
New retail units 32,187 33,780 61,028 64,021
Fleet units 4,558 4,677 8,913 8,413
Used units 18,871 17,443 37,266 33,702
Wholesale units 10,505 10,814 20,814 22,639
Average price per unit:
New retail vehicles $32,605 $33,402 $33,250 $33,684
Fleet vehicles 26,439 21,601 25,592 22,564
Used vehicles 20,111 20,142 20,107 19,898
Wholesale vehicles 7,850 9,086 8,014 9,010
Other Data:
Same store revenue
percentage
changes:
New retail (13.0%) (11.6%)
Fleet 2.9% 7.4%
Total New Vehicles (11.7%) (10.1%)
Used 2.7% 6.6%
Parts, service and collision
repair (0.8%) (0.1%)
Finance, insurance and other (2.1%) 1.4%
Total (7.8%) (6.1%)
Balance Sheet Data:
6/30/2008 12/31/2007
ASSETS
Current Assets:
Cash and cash equivalents $11,381 $16,514
Receivables, net 279,740 347,309
Inventories 1,156,208 1,093,017
Assets held for sale 114,263 87,342
Other current assets 36,477 35,879
Total current assets 1,598,069 1,580,061
Property and Equipment, Net 396,841 286,591
Goodwill, Net 1,250,363 1,276,074
Other Intangibles, Net 108,684 111,342
Other Assets 28,565 28,676
TOTAL ASSETS $3,382,522 $3,282,744
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Floor plan notes payable $1,159,953 $1,125,670
Other current liabilities 230,421 247,658
Liabilities associated with
assets held for sale 50,929 48,592
Current maturities of long-term
debt 134,983 4,197
Total current liabilities 1,576,286 1,426,117
LONG-TERM DEBT 647,652 697,800
OTHER LONG-TERM LIABILITIES 224,267 227,999
STOCKHOLDERS' EQUITY 934,317 930,828
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $3,382,522 $3,282,744
SOURCE Sonic Automotive, Inc.
CONTACT:
David Cosper
Chief Financial Officer
+1-704-566-2400
or
Greg Young
Vice President of Finance
+1-704-566-2489
both of Sonic Automotive, Inc.
top
CHARLOTTE, N.C., July 29 /PRNewswire-FirstCall/ -- Sonic Automotive, Inc. (NYSE: SAH), a leader in automotive retailing, today announced that second quarter 2008 earnings from continuing operations were $20.1 million, or $0.49 per diluted share, compared to $28.8 million, or $0.62 per diluted share, in the prior year period.
"This quarter's results are in line with our revised earnings target," said President and Chief Strategic Officer B. Scott Smith. "We have seen some improvement in our July business compared to the relatively weak industry experience the entire sector saw in June but the overall market remains challenged. We continue to see the benefit of the automotive retailing model and believe the changes we are making in light of the current economic environment will benefit our Company well into the future."
Presentation materials for the Company's earnings conference call at 11:00 A.M. (Eastern) on July 29, 2008 can be accessed on the Company's website at www.sonicautomotive.com by clicking on the "For Investors" tab and choosing "Webcasts & Presentations" on the right side of the screen.
To access the live broadcast of the conference call over the Internet go to: www.sonicautomotive.com
A live audio of the conference call will be accessible to the public by calling (877) 791-3416. International callers dial (706) 643-0958. Callers should dial in approximately 10 minutes before the call begins.
A conference call replay will be available one hour following the call for seven days and can be accessed by calling: (800) 642-1687 (domestic) or (706) 645-9291 (international), conference call ID #55356748.
About Sonic Automotive
Sonic Automotive, Inc., a Fortune 300 company based in Charlotte, N.C., is one of the largest automotive retailers in the United States operating 166 franchises. Sonic can be reached on the Web at www.sonicautomotive.com
Included herein are forward-looking statements, including statements with respect to July business activity. 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, risks associated with acquisitions and the risk factors described in the Company's quarterly report on Form 10-Q for the quarter ended March 31, 2008. The Company does not undertake any obligation to update forward-looking information.
Sonic Automotive, Inc.
Results of Operations (Unaudited)
(in thousands, except per share, unit data and percentage amounts)
Three Months Ended Six Months Ended
6/30/2008 6/30/2007 6/30/2008 6/30/2007
Revenues
New retail vehicles $1,049,472 $1,128,335 $2,029,199 $2,156,505
Fleet vehicles 120,507 101,030 228,099 189,835
Total new vehicles 1,169,979 1,229,365 2,257,298 2,346,340
Used vehicles 379,522 351,333 749,310 670,590
Wholesale vehicles 82,467 98,260 166,802 203,972
Total vehicles 1,631,968 1,678,958 3,173,410 3,220,902
Parts, service and
collision repair 294,608 283,478 587,581 561,606
Finance, insurance and
other 52,943 52,352 103,636 99,129
Total revenues 1,979,519 2,014,788 3,864,627 3,881,637
Total gross profit 310,755 313,697 613,512 609,364
SG&A expenses (242,042) (232,366) (481,690) (461,378)
Depreciation (8,879) (8,327) (16,744) (13,825)
Operating income 59,834 73,004 115,078 134,161
Interest expense, floor
plan (11,502) (16,645) (24,723) (32,342)
Interest expense, other (14,794) (8,871) (26,778) (17,548)
Other (expense) / income 26 74 97 90
Income from continuing
operations before taxes 33,564 47,562 63,674 84,361
Income taxes (13,431) (18,722) (25,470) (33,256)
Income from continuing
operations 20,133 28,840 38,204 51,105
Discontinued operations:
Loss from operations and
the sale of
discontinued franchises (13,319) (3,532) (18,836) (6,781)
Income tax benefit 3,997 1,060 5,651 2,035
Loss from discontinued
operations (9,322) (2,472) (13,185) (4,746)
Net income $10,811 $26,368 $25,019 $46,359
Diluted:
Weighted average common
shares outstanding 43,421 47,987 43,633 47,963
Earnings per share from
continuing operations $0.49 $0.62 $0.92 $1.11
Loss per share from
discontinued operations ($0.22) ($0.05) ($0.30) ($0.10)
Earnings per share $0.27 $0.57 $0.62 $1.01
Gross Margin Data (Continuing
Operations):
Retail new vehicles 7.5% 7.4% 7.4% 7.4%
Fleet vehicles 1.3% 2.6% 1.7% 2.4%
Total new vehicles 6.8% 7.0% 6.8% 7.0%
Used vehicles retail 8.5% 9.3% 8.7% 9.5%
Total vehicles retail 7.2% 7.5% 7.3% 7.6%
Wholesale vehicles (2.2%) (1.3%) (1.7%) (0.6%)
Parts, service and
collision repair 50.0% 50.8% 49.9% 50.5%
Finance, insurance and
other 100.0% 100.0% 100.0% 100.0%
Overall gross margin 15.7% 15.6% 15.9% 15.7%
SG&A Expenses (Continuing
Operations):
Personnel $136,924 $135,044 $271,948 $264,271
Advertising 17,224 16,039 33,529 31,122
Facility rent 21,410 24,880 46,419 49,840
Other 66,484 56,403 129,794 116,145
Total $242,042 $232,366 $481,690 $461,378
SG&A Expenses as % of
Gross Profit
Personnel 44.1% 43.0% 44.3% 43.4%
Advertising 5.5% 5.1% 5.5% 5.1%
Facility rent 6.9% 7.9% 7.6% 8.2%
Other 21.4% 18.1% 21.1% 19.0%
Total 77.9% 74.1% 78.5% 75.7%
Operating Margin % 3.0% 3.6% 3.0% 3.5%
Unit Data (Continuing
Operations):
New retail units 32,187 33,780 61,028 64,021
Fleet units 4,558 4,677 8,913 8,413
Used units 18,871 17,443 37,266 33,702
Wholesale units 10,505 10,814 20,814 22,639
Average price per unit:
New retail vehicles $32,605 $33,402 $33,250 $33,684
Fleet vehicles 26,439 21,601 25,592 22,564
Used vehicles 20,111 20,142 20,107 19,898
Wholesale vehicles 7,850 9,086 8,014 9,010
Other Data:
Same store revenue
percentage
changes:
New retail (13.0%) (11.6%)
Fleet 2.9% 7.4%
Total New Vehicles (11.7%) (10.1%)
Used 2.7% 6.6%
Parts, service and collision
repair (0.8%) (0.1%)
Finance, insurance and other (2.1%) 1.4%
Total (7.8%) (6.1%)
Balance Sheet Data:
6/30/2008 12/31/2007
ASSETS
Current Assets:
Cash and cash equivalents $11,381 $16,514
Receivables, net 279,740 347,309
Inventories 1,156,208 1,093,017
Assets held for sale 114,263 87,342
Other current assets 36,477 35,879
Total current assets 1,598,069 1,580,061
Property and Equipment, Net 396,841 286,591
Goodwill, Net 1,250,363 1,276,074
Other Intangibles, Net 108,684 111,342
Other Assets 28,565 28,676
TOTAL ASSETS $3,382,522 $3,282,744
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Floor plan notes payable $1,159,953 $1,125,670
Other current liabilities 230,421 247,658
Liabilities associated with
assets held for sale 50,929 48,592
Current maturities of long-term
debt 134,983 4,197
Total current liabilities 1,576,286 1,426,117
LONG-TERM DEBT 647,652 697,800
OTHER LONG-TERM LIABILITIES 224,267 227,999
STOCKHOLDERS' EQUITY 934,317 930,828
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $3,382,522 $3,282,744
SOURCE Sonic Automotive, Inc.
CONTACT:
David Cosper
Chief Financial Officer
+1-704-566-2400
or
Greg Young
Vice President of Finance
+1-704-566-2489
both of Sonic Automotive, Inc.
7/29/08
Sonic Automotive, Inc. Declares Quarterly Cash Dividend
CHARLOTTE, N.C., July 29 /PRNewswire-FirstCall/ -- Sonic Automotive, Inc. (NYSE: SAH), a leader in automotive retailing, today announced that its Board of Directors approved a quarterly dividend of $0.12 per share payable in cash for shareholders of record on September 15, 2008. The dividend will be payable October 15, 2008.
Sonic Automotive, Inc., a Fortune 300 company based in Charlotte, N.C., is one of the largest automotive retailers in the United States operating 166 franchises. Sonic can be reached on the web at www.sonicautomotive.com .
Included herein is a forward-looking statement pertaining to an anticipated cash dividend to shareholders. There are many factors that affect 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 view, including without limitation, economic conditions, risks associated with acquisitions and the risk factors described in the Company's quarterly report on Form 10-Q for the quarter ended March 31, 2008. The Company does not undertake any obligation to update forward-looking information.
SOURCE Sonic Automotive, Inc.
CONTACT:
David Cosper
Chief Financial Officer
+1-704-566-2400
or
Greg Young
Vice President of Finance
+1-704-566-2489
both of Sonic Automotive, Inc.
top
CHARLOTTE, N.C., July 29 /PRNewswire-FirstCall/ -- Sonic Automotive, Inc. (NYSE: SAH), a leader in automotive retailing, today announced that its Board of Directors approved a quarterly dividend of $0.12 per share payable in cash for shareholders of record on September 15, 2008. The dividend will be payable October 15, 2008.
Sonic Automotive, Inc., a Fortune 300 company based in Charlotte, N.C., is one of the largest automotive retailers in the United States operating 166 franchises. Sonic can be reached on the web at www.sonicautomotive.com .
Included herein is a forward-looking statement pertaining to an anticipated cash dividend to shareholders. There are many factors that affect 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 view, including without limitation, economic conditions, risks associated with acquisitions and the risk factors described in the Company's quarterly report on Form 10-Q for the quarter ended March 31, 2008. The Company does not undertake any obligation to update forward-looking information.
SOURCE Sonic Automotive, Inc.
CONTACT:
David Cosper
Chief Financial Officer
+1-704-566-2400
or
Greg Young
Vice President of Finance
+1-704-566-2489
both of Sonic Automotive, Inc.
News and Events
- 10/28/08
- Sonic Automotive, Inc. Announces Third Quarter Results CHARLOTTE, N.C., Oct. 28 /PRNewswire-FirstCall/ ...
- 10/28/08
- Sonic Automotive, Inc. Declares Quarterly Cash Dividend CHARLOTTE, N.C., Oct. 28 /PRNewswire-FirstCall/ ...
- 7/29/08
- Sonic Automotive, Inc. Announces Second Quarter Results CHARLOTTE, N.C., July 29 /PRNewswire-FirstCall/ ...
- 7/29/08
- Sonic Automotive, Inc. Declares Quarterly Cash Dividend CHARLOTTE, N.C., July 29 /PRNewswire-FirstCall/ ...