Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - SONIC AUTOMOTIVE INC | d383124d8k.htm |
| EX-99.1 - PRESS RELEASE OF SONIC AUTOMOTIVE, INC. DATED JULY 23, 2012 - SONIC AUTOMOTIVE INC | d383124dex991.htm |
| EX-99.3 - PRESS RELEASE OF SONIC AUTOMOTIVE, INC. DATED JULY 23, 2012 - SONIC AUTOMOTIVE INC | d383124dex993.htm |
 Q2
2012 Earnings Review July 23, 2012
Sonic Automotive, Inc.
1
Exhibit 99.2 |
 Forward-Looking
Statements This
presentation
contains
“forward-looking
statements”
within
the
meaning
of
the
Private
Securities
Litigation Reform Act of 1995. These statements relate to future events, are not historical
facts and are based on our current expectations and assumptions regarding our business, the
economy and other future conditions. These statements can generally be identified by
lead-in words such as “believe”,
“expect”,
“anticipate”,
“intend”,
“plan”,
“foresee”,
“may”, “will”
and
other
similar words.
Statements that describe our Company’s objectives, plans or goals are also forward-looking
statements. Examples of such forward-looking information we may be discussing in this
presentation
include,
without limitation,
further
implementation
of
our
operational strategies and
playbooks, future debt retirement, capital expenditures, operating margins and revenues, inventory
levels and new vehicle industry sales volume.
You are cautioned that these forward-looking statements are not guarantees of future performance,
involve risks and uncertainties and actual results may differ materially from those projected
in the forward-looking statements as a result of various factors. These risks and
uncertainties include, among other things, (a) economic conditions in the markets in which we
operate, (b) the success of our operational strategies, (c) our relationships with the
automobile manufacturers and (d) new and pre-owned vehicle sales volume. These risks and
uncertainties, as well as additional factors that could affect our
forward-looking statements, are described in our Form 10-K for the year ending
December 31, 2011 and our Form 10-Q for the quarter ended March 31, 2012.
These forward-looking statements, risks, uncertainties and additional factors speak only as of the
date
of
this
presentation.
We
undertake no
obligation
to
update
any
such
statements.
Sonic Automotive, Inc.
2 |
 Sonic Automotive, Inc.
Quarter in Review
Financial Results
Operations Recap
Summary and Outlook
o
o
o
o
Sonic Automotive Q2 2012
3 |
 Sonic Automotive, Inc.
Overall Results
Revenue Growth –
up 12.3%
New
retail
vehicle
revenue
up
21.3%
-
volume
up
22.3%
-
exceeds industry retail volume growth
Pre-owned revenue up 4.0%
F&I revenue up 18.0%
Fixed Operations revenue up 3.2%
SG&A at 77.8% -
in line with full year projections
Income from continuing operations of $27.5 million up 19.7%
Q2 2012 diluted EPS from continuing operations was $0.46 per
share vs. $0.38 in prior year period
Results include after-tax charges of approximately $1.6 million, or
$0.03 per diluted share, related to debt repurchases and income
4
tax benefits of $3.6 million, or $0.06 per diluted share, related to
the settlement of income tax related matters |
 Q2
2012 Results Sonic Automotive, Inc.
B/(W)
than Q2
2011
(amounts in millions,
except per share data)
Q2
2012
$
%
Revenue
Gross Profit
Operating Profit
Continuing Ops:
Profit (after tax)
Diluted EPS
$
2,185
$ 239
12%
$ 321
$ 15
5%
$ 60
$
1
1%
$ 28
$ 5
20%
$ 0.46
$
0.08
21%
5 |
 SG&A to Gross
160 bps Improvement from Q1
Target 78% for Full Year 2012
Sonic Automotive, Inc. |
 Sonic Automotive, Inc.
Capital Spending
(amounts in millions)
YTD Q2
2012
Estimated
2012
Real Estate Acquisitions
$ 4.8
$ 14.5
All Other Cap Ex
29.7
128.9
Subtotal
$ 34.5
$ 143.4
Less: Mortgage Funding
(10.7)
(48.5)
Total Cash Used –
Cap Ex
$ 23.8
$ 94.9
7 |
 Sonic Automotive, Inc.
Debt Covenants
Compliant with all Covenants
Covenant
Actual Q2
2012
Liquidity Ratio
>= 1.05
1.16
Fixed Charge Coverage Ratio
>= 1.20
1.56
Total Lease Adjusted Leverage
Ratio
<= 5.50
3.88
8 |
 New
Vehicles Includes
Fleet
(1) Source: JD Power
Sonic Automotive, Inc.
Q2 2012
Q2 2011
B/(W)
Retail Revenue
Retail Volume
Selling Price
Gross Margin %
GPU
Retail Gross Profit
$1.2 billion
34,396
$ 34,213
6.0%
$ 2,039
$ 70 million
$1.0 billion
28,125
$ 34,483
6.8%
$ 2,347
$ 66 million
21.3%
22.3%
($270)
(80 bps)
($ 308)
6.2%
9 |
 Pre-Owned Retail Vehicles
Q2 2012
Q2 2011
B/(W)
Retail Volume
27,528
26,799
2.7%
Revenue
$550 million
$529 million
4.0%
Pre-Owned Related Gross*
$
82 million
$
81 million
$
1 million
Pre-Owned to New Ratio
.80 to 1
.95 to 1
* -
Includes: pre-owned vehicle + reconditioning + F&I gross
Continue to make
progress toward
our goal of 100
per store per
month
Sonic Automotive, Inc.
10 |
 B/(W) than Q2
2011
(amounts in millions)
Q2 2012
$
%
Revenue
$ 305
$ 9
3.2%
Gross Profit
$ 149
$ 3
Q2 YOY Gross Profit Change Breakdown:
Fixed Operations
Sonic Automotive, Inc.
2.2%
11
•
Customer Pay Up 3.0%
•
Whsl. Parts Up 3.1%
•
Internal & Sublet Up 12.9%
•
Warranty Down 9.4% |
 Sonic Automotive, Inc.
12
Summary and Outlook
Revenue continues to grow in all categories
Investments in technology and training are progressing as
planned
Automotive retail industry outlook remains positive
Raising 2012 continuing operations diluted earnings per
share guidance of $1.62 -
$1.70. |
 Sonic Automotive, Inc.
13 |