Sonic Automotive Reports Third Quarter 2024 Financial Results

Business Wire
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EchoPark Reports All-Time Record Quarterly Gross Profit, Segment Income, and Adjusted EBITDA*

CHARLOTTE, N.C., October 24, 2024--(BUSINESS WIRE)--Sonic Automotive, Inc. ("Sonic Automotive," "Sonic," the "Company," "we" "us" or "our") (NYSE:SAH), one of the nation’s largest automotive retailers, today reported financial results for the third quarter ended September 30, 2024.

Third Quarter 2024 Financial Summary

  • Total revenues of $3.5 billion, down 4% year-over-year; total gross profit of $543.6 million, down 7% year-over-year

  • Reported net income of $74.2 million, up 8% year-over-year ($2.13 earnings per diluted share, up 11% year-over-year)

    • Reported net income includes the pre-tax effects of $1.8 million in excess compensation expense paid to our teammates related to the CDK outage and a $1.5 million charge related to storm damage, offset partially by a $2.3 million gain related to sale of real estate at previously closed EchoPark Segment stores, net of a $0.2 million income tax benefit on the above net charges

    • Reported net income also includes a $31.0 million income tax benefit associated with an out of period adjustment correcting an error recorded in connection with the impairment of franchise assets in a prior period

    • Excluding these items, adjusted net income* was $44.0 million, down 39% year-over-year ($1.26 adjusted earnings per diluted share*, down 38% year-over-year)

    • The carryover effects in July from the CDK Global software outage are estimated to have reduced third quarter GAAP income before taxes by approximately $17.2 million, and net income by approximately $12.7 million, or $0.36 in diluted earnings per share

      • Approximately $1.8 million ($0.04 in diluted earnings per share) of the pre-tax CDK impact during the third quarter was related to excess compensation paid to our teammates as a result of the CDK outage, which is included as a reconciling item in the non-GAAP reconciliation tables below

  • Total reported selling, general and administrative ("SG&A") expenses as a percentage of gross profit of 72.1% (72.4% on a Franchised Dealerships Segment basis, 72.9% on an EchoPark Segment basis, and 63.7% on a Powersports Segment basis)

    • Total adjusted SG&A expenses as a percentage of gross profit* of 71.9% (71.6% on a Franchised Dealerships Segment basis, 77.1% on an EchoPark Segment basis, and 63.7% on a Powersports Segment basis)

  • EchoPark Segment revenues of $544.9 million, down 13% year-over-year; all-time record quarterly EchoPark Segment total gross profit of $55.2 million, up 5% year-over-year; EchoPark Segment retail used vehicle unit sales volume of 17,757, down 7% year-over-year

  • Reported EchoPark Segment income of $5.2 million, up 131% year-over-year, and adjusted EchoPark Segment income* of $2.9 million, up 124% year-over-year

  • EchoPark Segment adjusted EBITDA* of $8.9 million, up 271% year-over-year

    • Excluding closed stores, EchoPark Segment adjusted EBITDA* was $9.2 million, a 454% improvement from a loss of $2.6 million in the prior year period

  • Sonic’s Board of Directors approved a 17% increase to the quarterly cash dividend, to $0.35 per share, payable on January 15, 2025 to all stockholders of record on December 13, 2024

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