November 27, 2020

Sonic

Sonic Automotive, Inc. (SAH Free Report) registered adjusted earnings per share of 40 cents in first-quarter 2020, beating the Zacks Consensus Estimate of 20 cents. Higher sales from the used vehicle unit led to outperformance. Moreover, the bottom line was a penny higher than 39 cents per share reported in the year-ago quarter on the back of solid performance from the EchoPark segment.

However, total revenues in the reported quarter amounted to $2,308 million, down 3.4% from the prior-year period. Further, revenues missed the Zacks Consensus Estimate of $2,325 million.

Key Takeaways

During the reported quarter, revenues from the sale of new vehicles fell 10% year over year to $959.5 million. Gross profit decreased to $45.4 million from $53.8 million recorded in the year-ago period.

Revenues from the sale of total used vehicles rose 3.6% from the prior-year quarter to $850 million. The metric also topped the consensus mark of $794 million. Unit sales rose from 38,463 a year ago to 40,024 in the quarter under review. While gross profit decreased 13.2% year over year to $32.1 million, the metric topped the Zacks Consensus Estimate of $31.7 million.

In the quarter under review, the EchoPark segment recorded revenues of $331.7 million, reflecting a 33% uptick from the year-ago figure. Its stores sold 13,986 units, up 27% on a year-over-year basis. The segment registered income of $2.1 million, unchanged from the year ago-quarter.

Wholesale vehicle revenues decreased 11.4% on a year-over-year basis to $48.5 million. Nonetheless, gross loss narrowed from $1.26 million in the year-ago quarter to $157,000.

Revenues from parts, services and collision repair fell 2% year over year to $334.7 million. Gross profit decreased $157.9 million in the quarter under review from $163.2 million in the year-ago period.

Finance, insurance and other revenues rose 8.5% on a year-over-year basis to $115.3 million.

Selling, general and administrative expenses increased to $282.2 million from $247.1 million in the year-ago quarter.

The board of directors announced a quarterly dividend of 10 cents per share, which will be paid on Jul 15, 2020 to shareholders of record on Jun 15, 2020. As of Apr 28, Sonic Automotive — whose peers include Lithia Motors (LAD Free Report) , AutoNation (AN Free Report) and Group 1 Automotive (GPI Free Report) — had $304.0 million of cash and cash equivalents on hand.

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Our Story

Sonic Automotive is a Fortune 500 company that is transforming the way people shop for, buy and service their vehicles. Our talented team work together to ensure we provide an experience unmatched by our competitors.

Our associates are happy to work here because:

  • We boast the lowest turnover in the industry.
  • We provide award winning training (Training Magazine Top 125, and Brandon Hall Awards).
  • We are committed to developing and promoting within the company.
  • We are technology based – most jobs use IPads or IPhones that we provide.
  • Our benefits are extremely competitive with Medical, dental, vision, HSA, 401k and PTO.
  • We encourage peer to peer teamwork and recognition.
  • Special benefits to purchasing and leasing a car.
  • Personal Automotive Concierge Service.

If you want to find out more about the types of jobs we have here, we’ve highlighted a few.

We’re proud of what we’re doing here. Come and join us!

Our Personality Represents Who We Are.

We’re Friendly

We bring a positive attitude to every interaction with our guests, because buying and servicing a car should be an exciting experience, not a stressful one.

We’re Real

We use simple language that everyone on the road can understand – from teenagers to grandparents. We don’t speak in jargon or buzzwords.

We’re Listeners

We hear what our guest are saying. When they come to us with a question, we respond with a helpful answer, not marketing language.

We’re Respectful

This applies to people’s time and also their money. Every single guest is important to us – whether they are shopping for their very first car, their third car or just stopping by for service. We don’t look, feel or act like the competition.

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