Sonic Automotive, Inc. Reports Record Results

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 fourth quarter of 2016 and 2015 was $29.8 million, or $0.66 per diluted share, and $30.9 million, or $0.61 per diluted share, respectively.  The adjustments in the 2016 quarterly period relate to gains for a settlement with an original equipment manufacturer ("OEM") and the adjustment of physical damage loss accruals offset partially by losses related to fixed asset impairments and lease exit charges.  The adjustments in the 2015 quarterly period relate to gains from the disposal of dealership franchises, offset partially by losses related to fixed asset and franchise asset impairments.     

Adjusted net income from continuing operations for the full year of 2016 and 2015 was $92.3 million, or $2.01 per diluted share, and $100.2 million, or $1.97 per diluted share, respectively.  The adjustments in the 2016 annual period relate to gains for a settlement with an OEM, partially offset by charges related to physical damage losses, lease exit charges and fixed asset impairments.  The adjustments in the 2015 annual period related to charges related to physical damage losses, legal matters, lease exit charges and fixed assets impairments, franchise assets and goodwill, offset partially by gains from the disposal of dealership franchises.    

Commentary

Jeff Dyke, Sonic's EVP of Operations, stated, "We are very proud of our record setting performance in the fourth quarter and throughout 2016.  During the year, increases in fixed operations and F&I gross profit have been able to overshadow challenges experienced in the new and used vehicle gross profit categories. We are very proud of our team for how they handled these challenges driven by recalls, over-supply of inventory and softening in the Houston, Texas market. The December month was an all-time record breaking month for us and offset a weaker start to the quarter.  We sold, grossed, serviced and profited more in December than in any month in our company's history.  We believe our brand mix, improvements in the Houston economy and our team's execution of our Playbook strategy helped lead to this record breaking performance.  In addition, our stores representing three of our most significant brands, Honda, BMW and Mercedes, were able to outpace industry unit results during the fourth quarter."

"EchoPark^® continues to improve its performance from an operational and financial standpoint.  Several of the original stores in Denver were cash flow positive in the fourth quarter at the store operating level and our first store that has been open the longest was profitable for the year.  We have an additional store opening in Colorado Springs in the second quarter that will bring our store count total in Colorado to six.  Our next market we expect to open will be in Texas, specifically, the San Antonio market where we anticipate openings of at least three new locations in late 2017.  We are excited about our EchoPark^® performance and the progress we are making from a profit perspective.  We also continue to have one of the highest Reputation.com scores for auto retail, and retail in general, as guests continue to tell us that the goal we set of developing the best guest experience in the industry is being met!"

2017 Outlook

B. Scott Smith, the Company's Chief Executive Officer, noted, "The 2016 year proved to be a bit of a roller coaster ride from month-to-month as we believe consumer uncertainty, the effect of recalls and stop-sales made it challenging for all automotive retailers. We expect 2017 to be consistent with the 2016 environment for dealers and anticipate new vehicle industry volume to be between 17.0 million and 17.5 million units.  We project diluted earnings per share from continuing operations for 2017 to be between $2.00 and $2.10 per share.  This range includes the effect of projected EchoPark^® results and expansion.  We are projecting a loss related to EchoPark® for 2017 of between $0.23 and $0.27 per diluted share.  We will have additional comments on our 2017 outlook in our earnings call later today."

Dividend

Sonic's Board of Directors approved a quarterly dividend of $0.05 per share payable in cash for stockholders of record on March 15, 2017.  The dividend will be payable on April 14, 2017. 

Fourth 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: 1.877.450.3867
International: 1.706.643.0958
Conference ID: 57878967

A conference call replay will be available one hour following the call for seven days and can be accessed by calling:

Domestic: 1.855.859.2056
International: 1.404.537.3406
Conference ID: 57878967

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.

Forward Looking Statements

Included herein are forward-looking statements, including statements with respect to anticipated expansion of our EchoPark^® business, the estimated new vehicle industry volume in 2017 and anticipated diluted earnings per share from continuing operations for the full year ending December 31, 2017.  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 ending December 31, 2015.  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 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)
This release contains certain non-GAAP financial measures (the "Adjusted" amounts) as defined under SEC rules, such as, but not limited to, adjusted income from continuing operations and related earnings per share data.  The Company has reconciled these measures to the most directly comparable GAAP measures (the "Reported" amounts) in the release.  The Company believes that these non-GAAP financial measures improve the transparency of the Company's disclosure by providing period-to-period comparability of the Company's results from operations.
		Three Months Ended December 31,				Twelve Months Ended December 31,
		2016		2015		2016		2015
		(In thousands, except per share and unit data)
Revenues:
New retail vehicles		$          1,396,413		$          1,377,661		$          5,180,535		$          5,205,688
Fleet vehicles		11,914		22,101		53,970		59,713
Total new vehicles		1,408,327		1,399,762		5,234,505		5,265,401
Used vehicles		651,608		607,430		2,533,122		2,512,024
Wholesale vehicles		57,906		34,579		211,048		155,339
Total vehicles		2,117,841		2,041,771		7,978,675		7,932,764
Parts, service and collision repair		350,726		345,068		1,409,819		1,364,947
Finance, insurance and other, net		88,346		83,796		343,285		326,588
Total revenues		2,556,913		2,470,635		9,731,779		9,624,299
Gross profit		371,735		363,848		1,429,274		1,414,612
Selling, general and administrative expenses		(267,135)		(275,002)		(1,110,856) Werbung Mehr Nachrichten zur Sonic Automotive Inc. Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 15.04.24 - PR Newswire BlackRock Sustainable American Income Trust Plc - Transaction in Own Shares 15.04.24 - PR Newswire Invesco Select Trust Plc - Updated Results of the Tender Offers 15.04.24 - Inult Spezial: Große Spekulation: Wo und warum genau jetzt zu Wochenbeginn positionieren? Große Spekulation:    Wo und warum genau jetzt zu Wochenbeginn positionieren? weiterlesen» Anzeige wo-site-teaser-box-16667_site-teaser-box_2024-04-15_09%253A00%253A00_2024-04-16_09%253A00%253A59