CHARLOTTE, N.C., July 29 NC-Sonic-Auto-earns
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 profit310,755 313,697 613,512 609,364
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
operations20,133 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 benefit3,997 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 vehicles1.3%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 repair50.0% 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
Personnel44.1% 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%
Other21.4% 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 units32,187 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 vehicles20,111 20,142 20,107 19,898
Wholesale vehicles7,850 9,086 8,014 9,010
Other Data:
Same store revenue
percentage
changes:
New retail (13.0%) (11.6%)
Fleet2.9%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 279,740347,309
Inventories 1,156,208 1,093,017
Assets held for sale 114,263 87,342
Other current assets36,477 35,879
Total current assets 1,598,069 1,580,061
Property and Equipment, Net 396,841286,591
Goodwill, Net 1,250,363 1,276,074
Other Intangibles, Net108,684111,342
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 230,421247,658
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 DEBT647,652697,800
OTHER LONG-TERM LIABILITIES 224,267227,999
STOCKHOLDERS' EQUITY 934,317930,828
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY$3,382,522 $3,282,744
SOURCE Sonic Automotive, Inc.
