Sonic Automotive Reports All-Time Record Fourth Quarter and All-Time Record Full Year 2019

EchoPark Hits Record Revenues of $1.2 Billion; Sonic Announces Total Annual Revenue Target of $20 Billion

CHARLOTTE, N.C.–(BUSINESS WIRE)–Sonic Automotive, Inc. (“Sonic” or the “Company”) (NYSE:SAH), one of the nation’s largest automotive retailers, today reported financial results for the fourth quarter and full year ended December 31, 2019.

Fourth Quarter Highlights

  • All-time record quarterly earnings per diluted share from continuing operations of $1.04 for the fourth quarter of 2019, up 104% compared to the fourth quarter of 2018
  • All-time record quarterly consolidated total revenues of $2.7 billion and gross profit of $393.9 million for the fourth quarter of 2019, compared to $2.6 billion and $370.7 million, respectively, for the fourth quarter of 2018
  • EchoPark revenues of $308.6 million, up 52% from the fourth quarter of 2018, EchoPark retail volume of 12,676 units, up 45% from the fourth quarter of 2018
  • EchoPark segment income of $2.1 million, up 145% compared to the fourth quarter of 2018
  • Same Store Franchised Dealerships Segment operating results:

    • Revenues up 8.5%, gross profit up 9.4% compared to the fourth quarter of 2018
    • New vehicle unit volume up 7.5%; new vehicle gross profit per unit up 1.4%, to $2,213 per unit
    • Retail used vehicle unit volume up 9.7%; retail used vehicle gross profit per unit up 2.6%, to $1,269 per unit
    • Parts, service and collision repair gross profit up 6.2%, Customer Pay gross profit up 10.2% compared to the fourth quarter of 2018
    • Finance and insurance (“F&I”) gross profit up 13.7% compared to the fourth quarter of 2018 (all-time record quarterly F&I gross profit per retail unit of $1,809 on a total Sonic consolidated basis)

Full Year Highlights

  • All-time record full year earnings per diluted share from continuing operations of $3.31, up 171% compared to 2018
  • All-time record full year consolidated total revenues of $10.5 billion and gross profit of $1.5 billion, compared to $10.0 billion and $1.4 billion, respectively, for 2018
  • EchoPark revenues of $1.2 billion, up 66% from 2018, EchoPark retail volume of 49,520 units, up 68% from 2018
  • EchoPark segment income of $9.1 million, up 117% compared to 2018
  • Fiscal year 2019 debt reduction of $238 million, in line with $300 million target by mid-to-late 2020
  • Same Store Franchised Dealerships Segment operating results:

    • Revenues up 5.5%, gross profit up 6.7% compared to 2018
    • New vehicle unit volume up 0.6%; new vehicle gross profit per unit up 0.4%, to $2,083 per unit
    • Retail used vehicle unit volume up 7.7%; retail used vehicle gross profit per unit down 1.8%, to $1,272 per unit
    • Parts, service and collision repair gross profit up 6.0%, Customer Pay gross profit up 8.2% compared to 2018
    • F&I gross profit up 10.3% compared to 2018 (all-time record annual F&I gross profit per retail unit of $1,743 on a total Sonic consolidated basis)

Commentary

David Smith, Sonic’s and EchoPark’s Chief Executive Officer, commented, “Our 2019 performance was exceptional, with record-breaking consolidated total revenues and earnings per diluted share from continuing operations. This was led by tremendous year-over-year annual revenue growth of 66% at EchoPark, our specialty pre-owned vehicle stores, as well as strong performance from our franchised dealerships.”

Mr. Smith continued, “During the fourth quarter, EchoPark opened its Long Beach, California store, our ninth location nationwide and our first in California. Upon opening, this location proceeded to sell over 450 vehicles within the first 45 days of operation. This is an excellent start and it speaks to the strength of our unique business model and the industry-leading guest experience our EchoPark stores provide. EchoPark experienced strong growth in 2019, and we believe it is poised for further growth in 2020 as we capitalize on opportunities to expand EchoPark’s reach into new markets, which we expect to include three new stores by the end of 2020. Taking into consideration EchoPark’s growth trajectory and the continued strength of our franchised dealerships, 2020 marks the beginning of our march towards our long-term goal of achieving $20 billion in total annual revenues this decade.”

Jeff Dyke, Sonic’s and EchoPark’s President, commented, “In 2019, we continued improving our operational performance, driving increased gross profit to our bottom line. As a result, we achieved record net income from continuing operations of $3.31 per diluted share for the year. At the same time, we moved forward with our deleveraging initiatives, resulting in a total debt reduction of $238 million. With the progress we have made, we are well on our way to reaching our stated goal of reducing debt by $300 million by mid-to-late 2020. With our strong 2019 results and improved balance sheet, we are well positioned to execute on our growth plans for our increasingly profitable EchoPark business, even as we continue to strategically grow our core franchised business.”

Fourth Quarter 2019 Operational Summary

For the fourth quarter of 2019, Sonic consolidated total revenues were $2.7 billion, up 7% compared to the fourth quarter of 2018. EchoPark Segment revenues were $308.6 million for the fourth quarter of 2019, representing a 52% increase from the fourth quarter of 2018. Franchised Dealerships Segment revenues were $2.4 billion for the fourth quarter of 2019, up 3% from the fourth quarter of 2018, despite the disposal of ten franchised dealerships in 2019 which generated revenues of $165.7 million during the fourth quarter of 2018.

SG&A expenses were $260.9 million in the fourth quarter of 2019, a decrease of 5% compared to the year-ago period, including the effect of items of interest below. SG&A expenses as a percentage of gross profit were 66.2% for the fourth quarter of 2019 compared to 73.9% in the fourth quarter of 2018. Excluding certain items of interest below (a non-GAAP measure), SG&A expenses as a percentage of gross profit improved 40 basis points, to 73.7%, for the fourth quarter of 2019, compared to 74.1% in the year-ago period.

Net income from continuing operations for the fourth quarter of 2019 was $46.3 million, or $1.04 per diluted share. Comparatively, net income from continuing operations for the fourth quarter of 2018 was $22.0 million, or $0.51 per diluted share. Included in the above reported fourth quarter results (unless otherwise noted) are the following pre-tax items of interest:

(In millions)

 

Q4 2019

 

Q4 2018

 

Income Statement

Line Item

 

Gain on franchise disposals

 

$

29.3

 

 

 

$

 

 

SG&A expenses

 

Lease exit adjustments

 

 

 

0.8

 

 

 

SG&A expenses

 

Impairment charges

 

(17.7

)

 

 

(15.6

)

 

 

Impairment charges

(1

)

Loss on extinguishment of debt

 

(7.2

)

 

 

 

 

Other expense

 

Subtotal: Pre-tax items of interest

 

$

4.4

 

 

 

$

(14.8

)

 

 

 

 

Tax effect of above items

 

(1.2

)

 

 

4.1

 

 

 

 

 

Tax-effected items of interest

 

$

3.2

 

 

 

$

(10.7

)

 

 

 

 

Note: Amounts in table relate to the Franchised Dealerships Segment unless otherwise noted.

(1) $16.6 million in the fourth quarter of 2019 and $1.5 million in the fourth quarter of 2018 attributed to the EchoPark Segment related to building and land held for sale at former EchoPark locations.


Full Year 2019 Operational Summary

For full year 2019, Sonic consolidated total revenues were $10.5 billion, up 5% compared to 2018. EchoPark Segment revenues were $1.2 billion for full year 2019, representing a 66% increase from 2018. Franchised Dealerships Segment revenues were $9.3 billion for full year 2019, flat compared to 2018, despite the disposal of ten franchised dealerships in 2019 which generated revenues of $656.1 million during 2018.

SG&A expenses were $1.1 billion in 2019, a decrease of 4% compared to 2018, including the effect of items of interest below. SG&A expenses as a percentage of gross profit were 72.3% in 2019 compared to 79.2% in 2018. Excluding certain items of interest below (a non-GAAP measure), SG&A expense as a percentage of gross profit improved 210 basis points, to 76.9%, for full year 2019, compared to 79.0% in 2018. Overall SG&A expense decreased as the Company continued its focus on disciplined expense control.

Net income from continuing operations for full year 2019 was $144.5 million, or $3.31 per diluted share. Comparatively, net income from continuing operations for full year 2018 was $52.4 million, or $1.22 per diluted share. Included in the above reported full year results (unless otherwise noted) are the following pre-tax items of interest:

(In millions)

 

FY 2019

 

FY 2018

 

Income Statement

Line Item

 

Gain on franchise disposals

 

$

76.0

 

 

 

$

38.9

 

 

 

SG&A expenses

 

Executive transition costs

 

(6.3

)

 

 

(1.6

)

 

 

SG&A expenses

 

Legal and storm damage charges

 

 

 

(5.7

)

 

 

SG&A expenses

 

Long-term compensation charges

 

 

 

(32.5

)

 

 

SG&A expenses

(1

)

Lease exit adjustments

 

 

 

(1.4

)

 

 

SG&A expenses

 

Impairment charges

 

(19.6

)

 

 

(29.5

)

 

 

Impairment charges

(2

)

Loss on extinguishment of debt

 

(7.2

)

 

 

 

 

Other expense

 

Subtotal: Pre-tax items of interest

 

$

42.9

 

 

 

$

(31.8

)

 

 

 

 

Tax effect of above items

 

(14.2

)

 

 

7.3

 

 

 

 

 

Tax-effected items of interest

 

$

28.7

 

 

 

$

(24.5

)

 

 

 

 

Note: Amounts in table relate to the Franchised Dealerships Segment unless otherwise noted.

(1) $32.5 million in 2018 relates to the EchoPark Segment.

(2) $18.5 million in 2019 and $1.6 million in 2018 attributed to the EchoPark Segment related to building and land held for sale at former EchoPark locations.


Dividend

Sonic’s Board of Directors approved a quarterly cash dividend of $0.10 per share payable on April 15, 2020 to all stockholders of record on March 13, 2020.

Fourth Quarter 2019 / Full Year 2019 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” at the top of the page, then “Investor Relations,” then “Earnings Conference Calls” at the bottom of the page.

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: 1659619

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: 1659619

Presentation materials for the Company’s earnings conference call will be accessible beginning the morning of the conference call on the Company’s website at www.sonicautomotive.com by clicking on “Our Company” at the top of the page, then “Investor Relations,” then “Webcasts & Presentations” at the bottom of the page.

About Sonic Automotive

Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, North Carolina, is one of the nation’s largest automotive retailers. Sonic can be reached on the web at www.sonicautomotive.com.

About EchoPark Automotive

EchoPark Automotive is an operating segment within the Company with nine existing locations that specialize in pre-owned vehicle sales and provide a unique guest experience unlike traditional used car stores. 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 long-term annual revenue targets, anticipated future growth and profitability in the Company’s EchoPark Segment, anticipated openings of new EchoPark stores in 2020, anticipated future performance and growth of our Franchised Dealerships Segment, and anticipated future debt reduction in 2020. 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 expansion or contraction, and the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and the Company’s other periodic reports and information filed with the Securities and Exchange Commission (the “SEC”). 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 SEC.

Non-GAAP Financial Measures

This press release and the attached financial tables may contain certain non-GAAP financial measures as defined under SEC rules, such as SG&A expenses as a percentage of gross profit excluding certain items required to be included by GAAP. As required by SEC rules, the Company has provided reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures in the attached financial tables. The Company believes that these non-GAAP financial measures improve the transparency of the Company’s disclosures and provide a meaningful presentation of the Company’s results.

 
 
 
 

Sonic Automotive, Inc.

Results of Operations (Unaudited)

 

Results of Operations

 

Three Months Ended

December 31,

 

Better /

(Worse)

 

Twelve Months Ended

December 31,

 

Better /

(Worse)

 

2019

 

 

2018

 

 

% Change

 

2019

 

 

2018

 

 

% Change

 

(In thousands, except per share amounts)

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

New vehicles

$

1,360,064

 

 

 

$

1,319,587

 

 

 

3.1

 

%

 

$

4,889,171

 

 

 

$

4,974,097

 

 

 

(1.7

)

%

Used vehicles

869,708

 

 

 

755,882

 

 

 

15.1

 

%

 

3,489,972

 

 

 

2,973,498

 

 

 

17.4

 

%

Wholesale vehicles

46,596

 

 

 

49,899

 

 

 

(6.6

)

%

 

202,946

 

 

 

217,625

 

 

 

(6.7

)

%

Total vehicles

2,276,368

 

 

 

2,125,368

 

 

 

7.1

 

%

 

8,582,089

 

 

 

8,165,220

 

 

 

5.1

 

%

Parts, service and collision repair

346,514

 

 

 

339,257

 

 

 

2.1

 

%

 

1,395,303

 

 

 

1,380,887

 

 

 

1.0

 

%

Finance, insurance and other, net

125,522

 

 

 

109,633

 

 

 

14.5

 

%

 

476,951

 

 

 

405,523

 

 

 

17.6

 

%

Total revenues

2,748,404

 

 

 

2,574,258

 

 

 

6.8

 

%

 

10,454,343

 

 

 

9,951,630

 

 

 

5.1

 

%

Cost of Sales:

 

 

 

 

 

 

 

 

 

 

 

New vehicles

(1,292,480

)

 

 

(1,253,792

)

 

 

3.1

 

%

 

(4,656,084

)

 

 

(4,732,595

)

 

 

(1.6

)

%

Used vehicles

(832,877

)

 

 

(722,291

)

 

 

15.3

 

%

 

(3,342,576

)

 

 

(2,830,510

)

 

 

18.1

 

%

Wholesale vehicles

(47,941

)

 

 

(52,069

)

 

 

(7.9

)

%

 

(207,378

)

 

 

(228,874

)

 

 

(9.4

)

%

Total vehicles

(2,173,298

)

 

 

(2,028,152

)

 

 

7.2

 

%

 

(8,206,038

)

 

 

(7,791,979

)

 

 

5.3

 

%

Parts, service and collision repair

(181,222

)

 

 

(175,391

)

 

 

3.3

 

%

 

(727,288

)

 

 

(713,526

)

 

 

1.9

 

%

Total cost of sales

(2,354,520

)

 

 

(2,203,543

)

 

 

6.9

 

%

 

(8,933,326

)

 

 

(8,505,505

)

 

 

5.0

 

%

Gross profit

393,884

 

 

 

370,715

 

 

 

6.2

 

%

 

1,521,017

 

 

 

1,446,125

 

 

 

5.2

 

%

Selling, general and administrative expenses

(260,921

)

 

 

(273,915

)

 

 

4.7

 

%

 

(1,099,374

)

 

 

(1,145,325

)

 

 

4.0

 

%

Impairment charges

(17,692

)

 

 

(15,553

)

 

 

(13.8

)

%

 

(20,768

)

 

 

(29,514

)

 

 

29.6

 

%

Depreciation and amortization

(23,048

)

 

 

(22,556

)

 

 

(2.2

)

%

 

(93,169

)

 

 

(93,623

)

 

 

0.5

 

%

Operating income (loss)

92,223

 

 

 

58,691

 

 

 

57.1

 

%

 

307,706

 

 

 

177,663

 

 

 

73.2

 

%

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

Interest expense, floor plan

(11,137

)

 

 

(13,585

)

 

 

18.0

 

%

 

(48,519

)

 

 

(48,398

)

 

 

(0.3

)

%

Interest expense, other, net

(13,458

)

 

 

(13,914

)

 

 

3.3

 

%

 

(52,953

)

 

 

(54,059

)

 

 

2.0

 

%

Other income (expense), net

(6,680

)

 

 

 

 

(100.0

)

%

 

(6,589

)

 

 

106

 

 

 

(6316.0

)

%

Total other income (expense)

(31,275

)

 

 

(27,499

)

 

 

(13.7

)

%

 

(108,061

)

 

 

(102,351

)

 

 

(5.6

)

%

Income (loss) from continuing operations before taxes

60,948

 

 

 

31,192

 

 

 

95.4

 

%

 

199,645

 

 

 

75,312

 

 

 

165.1

 

%

Provision for income taxes for continuing operations – benefit (expense)

(14,676

)

 

 

(9,212

)

 

 

(59.3

)

%

 

(55,108

)

 

 

(22,922

)

 

 

(140.4

)

%

Income (loss) from continuing operations

46,272

 

 

 

21,980

 

 

 

110.5

 

%

 

144,537

 

 

 

52,390

 

 

 

175.9

 

%

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations before taxes

62

 

 

 

(221

)

 

 

128.1

 

%

 

(554

)

 

 

(1,017

)

 

 

45.5

 

%

Provision for income taxes for discontinued operations – benefit (expense)

(27

)

 

 

62

 

 

 

(143.5

)

%

 

154

 

 

 

277

 

 

 

(44.4

)

%

Income (loss) from discontinued operations

35

 

 

 

(159

)

 

 

122.0

 

%

 

(400

)

 

 

(740

)

 

 

45.9

 

%

Net income (loss)

$

46,307

 

 

 

$

21,821

 

 

 

112.2

 

%

 

$

144,137

 

 

 

$

51,650

 

 

 

179.1

 

%

Basic earnings (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share from continuing operations

$

1.07

 

 

 

$

0.51

 

 

 

109.8

 

%

 

$

3.36

 

 

 

$

1.23

 

 

 

173.2

 

%

Earnings (loss) per share from discontinued operations

 

 

 

 

%

 

(0.01

)

 

 

(0.02

)

 

 

50.0

 

%

Earnings (loss) per common share

$

1.07

 

 

 

$

0.51

 

 

 

109.8

 

%

 

$

3.35

 

 

 

$

1.21

 

 

 

176.9

 

%

Weighted-average common shares outstanding

43,078

 

 

 

42,710

 

 

 

0.9

 

%

 

43,016

 

 

 

42,708

 

 

 

0.7

 

%

Diluted earnings (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share from continuing operations

$

1.04

 

 

 

$

0.51

 

 

 

103.9

 

%

 

$

3.31

 

 

 

$

1.22

 

 

 

171.3

 

%

Earnings (loss) per share from discontinued operations

 

 

 

 

%

 

(0.01

)

 

 

(0.02

)

 

 

50.0

 

%

Earnings (loss) per common share

$

1.04

 

 

 

$

0.51

 

 

 

103.9

 

%

 

$

3.30

 

 

 

$

1.20

 

 

 

175.0

 

%

Weighted-average common shares outstanding

44,463

 

 

 

42,911

 

 

 

(3.6

)

%

 

43,710

 

 

 

42,950

 

 

 

(1.8

)

%

Dividends declared per common share

$

0.10

 

 

 

$

0.06

 

 

 

66.7

 

%

 

$

0.40

 

 

 

$

0.24

 

 

 

66.7

 

%

 
 
 
 

New Vehicles – Consolidated

 

 

Three Months Ended December 31,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands, except unit and per unit data)

Reported new vehicle:

 

 

 

 

 

 

 

Revenue

$

1,360,064

 

 

$

1,319,587

 

 

$

40,477

 

 

 

3.1

 

%

Gross profit

$

67,584

 

 

$

65,795

 

 

$

1,789

 

 

 

2.7

 

%

Unit sales

30,591

 

 

31,331

 

 

(740

)

 

 

(2.4

)

%

Revenue per unit

$

44,460

 

 

$

42,118

 

 

$

2,342

 

 

 

5.6

 

%

Gross profit per unit

$

2,209

 

 

$

2,100

 

 

$

109

 

 

 

5.2

 

%

Gross profit as a % of revenue

5.0

%

 

5.0

%

 

 

 

bps

 

 

 

 

 

 

 

 

 

Twelve Months Ended December 31,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands, except unit and per unit data)

Reported new vehicle:

 

 

 

 

 

 

 

Revenue

$

4,889,171

 

 

$

4,974,097

 

 

$

(84,926

)

 

 

(1.7

)

%

Gross profit

$

233,087

 

 

$

241,502

 

 

$

(8,415

)

 

 

(3.5

)

%

Unit sales

114,131

 

 

122,717

 

 

(8,586

)

 

 

(7.0

)

%

Revenue per unit

$

42,838

 

 

$

40,533

 

 

$

2,305

 

 

 

5.7

 

%

Gross profit per unit

$

2,042

 

 

$

1,968

 

 

$

74

 

 

 

3.8

 

%

Gross profit as a % of revenue

4.8

%

 

4.9

%

 

(10

)

 

 

bps

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands, except unit and per unit data)

Same store new vehicle:

 

 

 

 

 

 

 

Revenue

$

1,336,909

 

 

$

1,215,081

 

 

$

121,828

 

 

 

10.0

 

%

Gross profit

$

66,437

 

 

$

60,919

 

 

$

5,518

 

 

 

9.1

 

%

Unit sales

30,018

 

 

27,921

 

 

2,097

 

 

 

7.5

 

%

Revenue per unit

$

44,537

 

 

$

43,519

 

 

$

1,018

 

 

 

2.3

 

%

Gross profit per unit

$

2,213

 

 

$

2,182

 

 

$

31

 

 

 

1.4

 

%

Gross profit as a % of revenue

5.0

%

 

5.0

%

 

 

 

bps

 

 

 

 

 

 

 

 

 

Twelve Months Ended December 31,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands, except unit and per unit data)

Same store new vehicle:

 

 

 

 

 

 

 

Revenue

$

4,691,795

 

 

$

4,504,210

 

 

$

187,585

 

 

 

4.2

 

%

Gross profit

$

224,526

 

 

$

222,335

 

 

$

2,191

 

 

 

1.0

 

%

Unit sales

107,803

 

 

107,149

 

 

654

 

 

 

0.6

 

%

Revenue per unit

$

43,522

 

 

$

42,037

 

 

$

1,485

 

 

 

3.5

 

%

Gross profit per unit

$

2,083

 

 

$

2,075

 

 

$

8

 

 

 

0.4

 

%

Gross profit as a % of revenue

4.8

%

 

4.9

%

 

(10

)

 

 

bps

 
 
 
 

Used Vehicles – Consolidated

 

 

Three Months Ended December 31,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands, except unit and per unit data)

Reported used vehicle:

 

 

 

 

 

 

 

Revenue

$

869,708

 

 

$

755,882

 

 

$

113,826

 

 

 

15.1

 

%

Gross profit

$

36,831

 

 

$

33,591

 

 

$

3,240

 

 

 

9.6

 

%

Unit sales

39,775

 

 

35,135

 

 

4,640

 

 

 

13.2

 

%

Revenue per unit

$

21,866

 

 

$

21,514

 

 

$

352

 

 

 

1.6

 

%

Gross profit per unit

$

926

 

 

$

956

 

 

$

(30

)

 

 

(3.1

)

%

Gross profit as a % of revenue

4.2

%

 

4.4

%

 

(20

)

 

 

bps

 

 

 

 

 

 

 

 

 

Twelve Months Ended December 31,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands, except unit and per unit data)

Reported used vehicle:

 

 

 

 

 

 

 

Revenue

$

3,489,972

 

 

$

2,973,498

 

 

$

516,474

 

 

 

17.4

 

%

Gross profit

$

147,396

 

 

$

142,988

 

 

$

4,408

 

 

 

3.1

 

%

Unit sales

162,149

 

 

139,605

 

 

22,544

 

 

 

16.1

 

%

Revenue per unit

$

21,523

 

 

$

21,299

 

 

$

224

 

 

 

1.1

 

%

Gross profit per unit

$

909

 

 

$

1,024

 

 

$

(115

)

 

 

(11.2

)

%

Gross profit as a % of revenue

4.2

%

 

4.8

%

 

(60

)

 

 

bps

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands, except unit and per unit data)

Same store used vehicle:

 

 

 

 

 

 

 

Revenue

$

809,993

 

 

$

711,494

 

 

$

98,499

 

 

 

13.8

 

%

Gross profit

$

33,604

 

 

$

28,127

 

 

$

5,477

 

 

 

19.5

 

%

Unit sales

37,174

 

 

32,446

 

 

4,728

 

 

 

14.6

 

%

Revenue per unit

$

21,789

 

 

$

21,929

 

 

$

(140

)

 

 

(0.6

)

%

Gross profit per unit

$

904

 

 

$

867

 

 

$

37

 

 

 

4.3

 

%

Gross profit as a % of revenue

4.1

%

 

4.0

%

 

10

 

 

 

bps

 

 

 

 

 

 

 

 

 

Twelve Months Ended December 31,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands, except unit and per unit data)

Same store used vehicle:

 

 

 

 

 

 

 

Revenue

$

3,191,404

 

 

$

2,759,003

 

 

$

432,401

 

 

 

15.7

 

%

Gross profit

$

131,695

 

 

$

124,304

 

 

$

7,391

 

 

 

5.9

 

%

Unit sales

146,456

 

 

126,415

 

 

20,041

 

 

 

15.9

 

%

Revenue per unit

$

21,791

 

 

$

21,825

 

 

$

(34

)

 

 

(0.2

)

%

Gross profit per unit

$

899

 

 

$

983

 

 

$

(84

)

 

 

(8.5

)

%

Gross profit as a % of revenue

4.1

%

 

4.5

%

 

(40

)

 

 

bps

 
 
 
 

Wholesale Vehicles – Consolidated

 

Three Months Ended December 31,

 

Better / (Worse)

 

2019

 

 

2018

 

 

Change

 

% Change

 

(In thousands, except unit and per unit data)

Reported wholesale vehicle:

 

 

 

 

 

 

 

Revenue

$

46,596

 

 

 

$

49,899

 

 

 

$

(3,303

)

 

 

(6.6

)

%

Gross profit (loss)

$

(1,345

)

 

 

$

(2,170

)

 

 

$

825

 

 

 

38.0

 

%

Unit sales

7,899

 

 

 

8,214

 

 

 

(315

)

 

 

(3.8

)

%

Revenue per unit

$

5,899

 

 

 

$

6,075

 

 

 

$

(176

)

 

 

(2.9

)

%

Gross profit (loss) per unit

$

(170

)

 

 

$

(264

)

 

 

$

94

 

 

 

35.5

 

%

Gross profit (loss) as a % of revenue

(2.9

)

%

 

(4.3

)

%

 

140

 

 

 

bps

 

 

 

 

 

 

 

 

 

Twelve Months Ended December 31,

 

Better / (Worse)

 

2019

 

 

2018

 

 

Change

 

% Change

 

(In thousands, except unit and per unit data)

Reported wholesale vehicle:

 

 

 

 

 

 

 

Revenue

$

202,946

 

 

 

$

217,625

 

 

 

$

(14,679

)

 

 

(6.7

)

%

Gross profit (loss)

$

(4,432

)

 

 

$

(11,249

)

 

 

$

6,817

 

 

 

60.6

 

%

Unit sales

34,153

 

 

 

34,167

 

 

 

(14

)

 

 

%

Revenue per unit

$

5,942

 

 

 

$

6,369

 

 

 

$

(427

)

 

 

(6.7

)

%

Gross profit (loss) per unit

$

(130

)

 

 

$

(329

)

 

 

$

199

 

 

 

60.5

 

%

Gross profit (loss) as a % of revenue

(2.2

)

%

 

(5.2

)

%

 

300

 

 

 

bps

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Better / (Worse)

 

2019

 

 

2018

 

 

Change

 

% Change

 

(In thousands, except unit and per unit data)

Same store wholesale vehicle:

 

 

 

 

 

 

 

Revenue

$

44,769

 

 

 

$

46,458

 

 

 

$

(1,689

)

 

 

(3.6

)

%

Gross profit (loss)

$

(1,355

)

 

 

$

(1,962

)

 

 

$

607

 

 

 

30.9

 

%

Unit sales

7,415

 

 

 

7,356

 

 

 

59

 

 

 

0.8

 

%

Revenue per unit

$

6,038

 

 

 

$

6,316

 

 

 

$

(278

)

 

 

(4.4

)

%

Gross profit (loss) per unit

$

(183

)

 

 

$

(267

)

 

 

$

84

 

 

 

31.5

 

%

Gross profit (loss) as a % of revenue

(3.0

)

%

 

(4.2

)

%

 

120

 

 

 

bps

 

 

 

 

 

 

 

 

 

Twelve Months Ended December 31,

 

Better / (Worse)

 

2019

 

 

2018

 

 

Change

 

% Change

 

(In thousands, except unit and per unit data)

Same store wholesale vehicle:

 

 

 

 

 

 

 

Revenue

$

191,431

 

 

 

$

195,743

 

 

 

$

(4,312

)

 

 

(2.2

)

%

Gross profit (loss)

$

(3,808

)

 

 

$

(9,792

)

 

 

$

5,984

 

 

 

61.1

 

%

Unit sales

31,016

 

 

 

29,245

 

 

 

1,771

 

 

 

6.1

 

%

Revenue per unit

$

6,172

 

 

 

$

6,693

 

 

 

$

(521

)

 

 

(7.8

)

%

Gross profit (loss) per unit

$

(123

)

 

 

$

(335

)

 

 

$

212

 

 

 

63.3

 

%

Gross profit (loss) as a % of revenue

(2.0

)

%

 

(5.0

)

%

 

300

 

 

 

bps

 
 
 
 

Parts, Service and Collision Repair (Fixed Operations) – Consolidated

 

Three Months Ended December 31,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands)

Reported Fixed Operations:

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

Customer pay

$

141,442

 

 

$

137,690

 

 

$

3,752

 

 

 

2.7

 

%

Warranty

63,713

 

 

68,425

 

 

(4,712

)

 

 

(6.9

)

%

Wholesale parts

39,934

 

 

38,302

 

 

1,632

 

 

 

4.3

 

%

Internal, sublet and other

101,425

 

 

94,840

 

 

6,585

 

 

 

6.9

 

%

Total

$

346,514

 

 

$

339,257

 

 

$

7,257

 

 

 

2.1

 

%

 

 

 

 

 

 

 

 

Gross profit:

 

 

 

 

 

 

 

Customer pay

$

76,346

 

 

$

73,173

 

 

$

3,173

 

 

 

4.3

 

%

Warranty

35,302

 

 

38,411

 

 

(3,109

)

 

 

(8.1

)

%

Wholesale parts

6,868

 

 

6,797

 

 

71

 

 

 

1.0

 

%

Internal, sublet and other

46,776

 

 

45,485

 

 

1,291

 

 

 

2.8

 

%

Total

$

165,292

 

 

$

163,866

 

 

$

1,426

 

 

 

0.9

 

%

 

 

 

 

 

 

 

 

Gross profit as a % of revenue:

 

 

 

 

 

 

 

Customer pay

54.0

%

 

53.1

%

 

90

 

 

bps

Warranty

55.4

%

 

56.1

%

 

(70

)

 

bps

Wholesale parts

17.2

%

 

17.7

%

 

(50

)

 

bps

Internal, sublet and other

46.1

%

 

48.0

%

 

(190

)

 

bps

Total

47.7

%

 

48.3

%

 

(60

)

 

bps

 

 

 

 

 

 

 

 

 

Twelve Months Ended December 31,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands)

Reported Fixed Operations:

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

Customer pay

$

561,422

 

 

$

560,037

 

 

$

1,385

 

 

 

0.2

 

%

Warranty

272,389

 

 

266,644

 

 

5,745

 

 

 

2.2

 

%

Wholesale parts

157,603

 

 

161,066

 

 

(3,463

)

 

 

(2.2

)

%

Internal, sublet and other

403,889

 

 

393,140

 

 

10,749

 

 

 

2.7

 

%

Total

$

1,395,303

 

 

$

1,380,887

 

 

$

14,416

 

 

 

1.0

 

%

 

 

 

 

 

 

 

 

Gross profit:

 

 

 

 

 

 

 

Customer pay

$

304,950

 

 

$

299,617

 

 

$

5,333

 

 

 

1.8

 

%

Warranty

150,984

 

 

150,746

 

 

238

 

 

 

0.2

 

%

Wholesale parts

27,187

 

 

27,746

 

 

(559

)

 

 

(2.0

)

%

Internal, sublet and other

184,894

 

 

189,252

 

 

(4,358

)

 

 

(2.3

)

%

Total

$

668,015

 

 

$

667,361

 

 

$

654

 

 

 

0.1

 

%

 

 

 

 

 

 

 

 

Gross profit as a % of revenue:

 

 

 

 

 

 

 

Customer pay

54.3

%

 

53.5

%

 

80

 

 

bps

Warranty

55.4

%

 

56.5

%

 

(110

)

 

bps

Wholesale parts

17.3

%

 

17.2

%

 

10

 

 

bps

Internal, sublet and other

45.8

%

 

48.1

%

 

(230

)

 

bps

Total

47.9

%

 

48.3

%

 

(40

)

 

bps

Contacts

Investor Inquiries:
Heath Byrd, Executive Vice President and Chief Financial Officer (704) 566-2400

Danny Wieland, Director of Financial Reporting (704) 927-3462

ir@sonicautomotive.com

Press Inquiries:
Danielle DeVoren / Anthony Feldman

(212) 896-1272 / (347) 487-6194

sonic@kcsa.com

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