Sonic Automotive, Inc. Announces 2000 Net Income Increases
66%
CHARLOTTE, N.C., Feb. 26 Sonic Automotive, Inc. announced today net income of
$12.3 million, or $0.29 per diluted share, for the fourth quarter ended
December 31, 2000. Net income before goodwill amortization expense for the
quarter was $0.39 per diluted share.
For the year ended December 31, 2000, net income increased 66% to
$74.1 million, or $1.69 per diluted share, from $44.6 million, or $1.27 per
diluted share, for the same period in 1999. Net income per diluted share
before goodwill amortization expense for 2000 was $2.08 versus $1.51 for 1999.
O. Bruton Smith, the Company's Chairman and Chief Executive Officer
stated, "A softer new vehicle market will likely continue at least into the
second quarter. Aggressive steps have already been taken to reduce inventory
levels and related floorplan interest expense along with promotional and other
variable expenses. We remain comfortable with our previously announced
earnings per share guidance of $0.22 to $0.24 for the first quarter of 2001
and $1.43 to $1.47 for the full year 2001."
Same Store Sales
On a same store basis, revenues in the three months ended
December 31, 2000 decreased 2.5%. Same store new vehicle sales declined 5.5%
for the quarter while same store used retail vehicle sales remained constant.
Combined vehicle sales on a same store basis decreased 3.5% for the quarter.
For the three months ended December 31, 2000 same store sales for higher
margin service, parts, collision repair and finance and insurance products
increased 4.1%.
Revenues for the full year 2000 on a same store basis increased 2.5%.
Same store new vehicle sales declined 1.9% while same store used retail
vehicle sales increased 10.0%. Combined vehicle sales on a same store basis
increased 1.7% in 2000. Sales of service, parts, collision repair and finance
and insurance products increased 7.9% for the full year 2000.
Acquisitions and Dispositions
During the fourth quarter of 2000 and the first quarter of 2001, Sonic
closed on five previously announced acquisitions with 1999 revenues of
approximately $545 million. Sonic closed on the previously unannounced
acquisition of Capital Chevrolet in Columbus, Ohio (formerly Bill Swad
Chevrolet) on February 6, 2001. Sonic has also completed dispositions of
eight franchises in the fourth quarter of 2000 and the first quarter of 2001.
Stock Buyback Activity
As of February 25, 2001, Sonic has expended $52.3 million of a $75 million
authorized stock buyback program. This buyback represents over 12% of Sonic's
total common stock equivalents outstanding. Sonic intends to continue to use
the authorized stock buyback as market conditions warrant.
Sonic Automotive, Inc.
Results of Operations (unaudited)
(in thousands, except per share and unit data amounts)
Three Months Ended Twelve Months Ended
12/31/1999 12/31/2000 12/31/1999 12/31/2000
New units 26,785 31,126 79,294 135,919
Used units 14,953 17,964 47,345 79,749
Total units retailed 41,738 49,090 126,639 215,668
Wholesale units 12,539 16,241 39,834 67,835
Average price per unit:
New vehicles 25,859 26,966 24,826 25,913
Used vehicles 15,098 15,965 14,459 15,664
Wholesale vehicles 6,450 6,606 6,296 6,346
Revenues
New vehicles $692,632 $839,353 $1,968,514 $3,522,049
Used vehicles 225,763 286,796 684,560 1,249,188
Wholesale vehicles 80,871 107,282 250,794 430,513
Total vehicles 999,266 1,233,431 2,903,868 5,201,750
Parts, service, and
collision repair 133,935 174,055 364,184 687,975
Finance & insurance and
other 30,676 37,389 82,771 162,751
Total Revenues 1,163,877 1,444,875 3,350,823 6,052,476
Total Gross Profit 165,433 209,114 454,423 865,187
SG&A expenses 119,621 159,611 326,914 633,356
Depreciation 1,181 1,014 3,138 5,944
Goodwill amortization 3,375 4,356 8,561 16,770
Operating Income 41,256 44,133 115,810 209,117
Interest expense, floor plan 7,418 13,096 22,536 47,108
Interest expense, other 9,409 11,046 21,586 42,246
Other income 924 -- 1,286 109
Income Before Taxes 25,353 19,991 72,974 119,872
Income taxes 10,075 7,700 28,325 45,700
Net Income $15,278 $12,291 $44,649 $74,172
Diluted:
Weighted average common
shares outstanding 40,465 42,542 35,248 43,826
Earnings per share $0.38 $0.29 $1.27 $1.69
Gross Margin Data:
New vehicles retail 8.5% 8.7% 8.2% 8.3%
Used vehicles retail 10.2% 10.5% 10.6% 10.9%
Total vehicles retail 8.9% 9.1% 8.8% 9.0%
Parts, service and
collision repair 44.0% 44.9% 42.5% 44.6%
Finance and insurance 84.9% 84.0% 84.2% 84.2%
Overall gross margin 14.2% 14.5% 13.6% 14.3%
SG&A Expenses:
Personnel $72,540 $94,164 $200,747 $385,054
Advertising 11,783 15,645 33,101 58,761
Facility rent 10,403 14,988 26,418 54,724
Other 24,895 34,814 66,648 134,817
Balance Sheet Data:
Cash and equivalents $83,111 $109,325
Working capital $177,657 $200,944
New vehicle inventory $459,382 $591,583
Used vehicle inventory $109,130 $116,836
Parts inventory $44,821 $48,916
Floorplan debt $517,575 $684,718
Long term debt (including
current portion) $419,671 $487,809
Other Data:
Net operating cash flow $20,003 $17,864 $56,794 $97,021
Interest (non-floorplan)
coverage ratio 4.2x 3.3x 4.9x 4.4x
EBITDA (after floorplan
interest) $39,317 $36,404 $106,259 $184,829
Average debt to EBITDA
ratio 2.1x 2.6x
