CHARLOTTE, N.C., May 1 /PRNewswire-FirstCall/ -- Sonic Automotive, Inc. , a leader in automotive retailing, today reported that its 2007 first quarter earnings from continuing operations were $23.7 million, an increase of 10% from the $21.5 million earned in the first quarter of 2006. Diluted earnings per share from continuing operations was $0.52 for the quarter compared to $0.49 a year ago.
Total revenue for the first quarter of 2007 increased 3.6% with same store revenue up 2.2% over the prior year quarter. On a same store basis compared to the same quarter last year, new vehicle retail revenues were up 2.3%, used vehicle retail revenues were up 5.1%, fixed operations revenue was up 5.4% and finance and insurance revenues were up 6.3%. Luxury and import brands represented 83% of total revenues for the quarter.
B. Scott Smith, the Company's President said, "Our results this quarter reflect the continued execution of our key operating initiatives. Our same store sales growth in the higher-margin segments of our business demonstrate the effectiveness of our used vehicle merchandising program and our electronic F&I menu rollout along with our core strength in the parts and service business. In addition to these revenue improvements, we continue to focus on our expense structure and ended the quarter with SG&A as a percentage of gross profit at 77.4%, or a 90 basis improvement, compared to the same quarter last year. We remain comfortable with our 2007 continuing operations EPS target of $2.48 to $2.58 per diluted share."
Presentation materials for the Company's May 1, 2007 earnings conference call can be accessed on the Company's website at http://www.sonicautomotive.com/ by clicking on the "For Investors" tab and choosing "Webcasts & Presentations" on the left side of the monitor.
To access the live broadcast of the call over the Internet go to: http://www.ccbn.com/ or http://www.sonicautomotive.com/
A live audio of the call will be accessible to the public at 11:00A.M. EST 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, Conference ID: 5333288, International callers dial (706) 645-9291.
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 175 franchises and 38 collision repair centers. Sonic can be reached on the Web at http://www.sonicautomotive.com/.
Included herein are forward-looking statements, including statements pertaining to anticipated diluted earnings per share from continuing operations. 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 annual report on Form 10-K for the year ended December 31, 2006. 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
03/31/2007 03/31/2006
Revenues
Retail new vehicles $1,075,551 $1,037,301
Fleet vehicles 88,971 86,485
New vehicles 1,164,522 1,123,786
Used vehicles 331,032 310,208
Wholesale vehicles 115,156 132,476
Total vehicles 1,610,710 1,566,470
Parts, service and collision repair 294,852 273,728
Finance, insurance and other 48,846 45,879
Total revenues 1,954,408 1,886,077
Total gross profit 310,463 298,069
SG&A expenses 240,288 233,451
Depreciation 5,794 4,818
Operating income 64,381 59,800
Interest expense, floor plan 16,291 12,297
Interest expense, other 9,277 11,949
Other (expense) / income 6 (665)
Income from continuing operations
before taxes 38,819 34,889
Income taxes 15,140 13,357
Income from continuing operations 23,679 21,532
Discontinued operations:
Loss from operations and the sale
of discontinued franchises (5,269) (7,171)
Income tax benefit 1,581 2,721
Loss from discontinued operations (3,688) (4,450)
Net income $19,991 $17,082
Diluted:
Weighted average common shares
outstanding 47,938 46,205
Earnings per share from continuing
operations $0.52 $0.49
Loss per share from discontinued
operations ($0.08) ($0.10)
Earnings per share $0.44 $0.39
Gross Margin Data (Continuing Operations):
Retail new vehicles 7.3% 7.6%
Fleet vehicles 2.2% 3.2%
Total new vehicles 7.0% 7.3%
Used vehicles 10.3% 10.8%
Total vehicles 7.2% 7.4%
Parts, service and collision repair 49.6% 49.7%
Finance, insurance and other 100.0% 100.0%
Overall gross margin 15.9% 15.8%
SG&A Expenses (Continuing Operations):
Personnel $136,105 $136,785
Advertising 15,566 14,491
Facility rent 26,059 23,712
Other 62,558 58,463
Total $240,288 $233,451
Unit Data (Continuing Operations):
New retail units 32,143 31,700
Fleet units 3,745 3,944
New units 35,888 35,644
Used units 17,008 16,144
Total units retailed 52,896 51,788
Wholesale units 12,861 13,377
Average price per unit:
New retail vehicles 33,461 32,722
Fleet vehicles 23,757 21,928
Total new vehicles 32,449 31,528
Used vehicles 19,463 19,215
Wholesale vehicles 8,954 9,903
Other Data:
Same store revenue percentage
changes:
New retail 2.3%
Fleet 0.4%
New total 2.1%
Used 5.1%
Parts, service and collision repair 5.4%
Finance, insurance and other 6.3%
Total 2.2%
Balance Sheet Data:
3/31/2007 (1) 12/31/2006
ASSETS
Current Assets:
Cash and cash equivalents $14,001 $12,696
Receivables, net 334,097 385,849
Inventories 1,069,693 991,984
Assets held for sale 152,340 160,571
Construction in progress and land
expected to be sold in
sale-leaseback transactions 32,294 26,198
Other current assets 41,825 35,834
Total current assets 1,644,250 1,613,132
Property and Equipment, Net 230,639 220,551
Goodwill, Net 1,162,562 1,155,428
Other Intangibles, Net 97,770 94,136
Other Assets 44,774 41,517
TOTAL ASSETS $3,179,995 $3,124,764
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Floor plan notes payable - trade $245,163 $377,943
Floor plan notes payable - non- trade 852,085 686,515
Trade accounts payable 71,063 68,016
Accrued interest 15,980 19,336
Other accrued liabilities (1) 181,476 180,884
Liabilities associated with
assets held for sale - trade 55,309 54,229
Liabilities associated with
assets held for sale - non-trade 38,908 42,063
Current maturities of long-term debt 2,696 2,707
Total current liabilities 1,462,680 1,431,693
LONG-TERM DEBT 601,272 598,627
OTHER LONG-TERM LIABILITIES (1) 38,548 39,570
DEFERRED INCOME TAXES 149,918 151,034
STOCKHOLDERS' EQUITY (1) 927,577 903,840
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $3,179,995 $3,124,764
Balance Sheet Ratios:
Current Ratio (1) 1.12 1.13
Debt to Total Capital, Net of
Cash (1) 38.9% 39.4%
(1) - Excludes the impact of the adoption of FIN 48
