Sonic Automotive, Inc. Reports Q3 Earnings
21 November 1997
Sonic Automotive, Inc. Reports 3rd Quarter Earnings of $0.23 Per Share
CHARLOTTE, N.C., Nov. 20 -- Sonic Automotive, Inc.
. For the three months ended September 30, 1997 the Company's pro
forma (including the results of Acquisitions, the Reorganization and the
Company's Initial Public Offering) total revenues were $255.0 million with
total Unit sales of 13,904. As compared to the three month period ended
September 30, 1996, this represented an 11.1% increase in revenues from
$229.5 million and a 10.5% increase in unit sales from 12,580. Pro forma
operating income, earnings before taxes and net income after taxes for the
three months ended September 30, 1997 were $7.9 million, $4.1 million and
$2.6 million, respectively. Pro forma shares outstanding totaled 11,250,000
and resulted in earnings per share of $0.23 for the quarter ended
September 30, 1997. Pro forma cash net income (net income plus goodwill
amortization) was $0.26 per share for the three months ended
September 30, 1997.
Total historical revenues and gross profit for the third quarter ended
September 30, 1997 were $127.1 million and $14.8 million, respectively,
representing increases of $33.3 million or 35.4% and $3.3 million or 29.0%,
respectively, from the comparable 1996 period. Same store growth for the
three months ended September 30, 1997 was 17.6%. These increases were
primarily due to increases in new vehicle retail vehicle sales along with
additional revenue from the acquisitions of the Fort Mill Chrysler-Plymouth-
Dodge, Lake Norman Chrysler-Plymouth-Jeep and Lake Norman Dodge dealerships.
Unit sales for new, used and wholesale vehicles for the three months ended
September 30, 1997 were 3,795; 1,607 and 1,935, respectively, compared to
3,099; 1,635 and 1,593 for the same period in 1996, representing a 22.46%,
(1.71%) and 21.5% increase/(decrease). Operating income, earnings before
income taxes and net income after taxes for the quarter ended September 30,
1997 were $3.2 million, $1.5 million and $0.9 million, respectively,
representing increases of $0.7 million or 30.4%, $0.4 million or 36.0% and
$0.2 million or 33.4%, respectively, primarily due to the increase in gross
profit and a decrease in selling, general and administrative expenses as a
percentage of total revenues.
"Our third quarter results met management's expectations. These results
are indicative of continued strength of our regional economy and our
franchised products; same store growth was particularly strong in the third
quarter," said Bruton Smith, the Company's Chairman and Chief Executive
Officer.
The Company's unaudited total revenues and gross profit for the nine
months ended September 30, 1997 were $339.8 million and $39.2 million,
respectively, representing increases of $56.4 million or 19.9% and $5.2
million or 15.4%, respectively, from the comparable 1996 period. Same store
growth for the nine months ended September 30, 1997 was 13.3%. These increases
were primarily due to increases in sales from retail vehicles and parts,
service, collision and repair services, along with additional revenues from
the acquisitions of the Fort Mill Chrysler-Plymouth-Dodge, Lake Norman
Chrysler-Plymouth-Jeep and Lake Norman Dodge dealerships. Unit sales for new,
used and wholesale vehicles for the nine months ended September 30, 1997 were
10,348; 4,245 and 4,685, respectively, compared to 9,126; 4,471 and 4,344 for
the same period in 1996, representing a 13.3%, (5.05%) and 7.85%
increase/(decrease). Operating income, earnings before income taxes and net
income after taxes for the nine months ended September, 30, 1997 were $8.7
million, $4.0 million and $2.5 million, respectively, representing increases
of $0.8 million or 10.0%, $50,000 or 1.26% and $46,000 or 1.9%, respectively,
primarily due to the increase in gross profit and the stability of selling,
general and administrative expenses as a percentage of total revenues.
On November 11, 1997 Sonic Automotive completed its initial public
offering of 5,000,000 shares for $60 million. Prior to and concurrent with
the offering, the Company has successfully completed its acquisitions of six
dealerships or dealership groups giving the Company a total of 23 dealership
franchises. Sonic Automotive, Inc. is a leading automotive retailer and
consolidator with franchises in the southeastern and southwestern United
States.
SOURCE Sonic Automotive, Inc.