Sonic Automotive Reports Q1 EPS
5 May 1998
Sonic Automotive, Inc. Reports First Quarter EPS Up 111 Percent
CHARLOTTE, N.C., May 5 -- Sonic Automotive, Inc.
reported an increase in net income for the three months ended March 31, 1998
of 295.2% to $2.1 million, or $0.19 per diluted share, from $0.5 million and
$0.09 per diluted share for the first three months of 1997. Cash income per
diluted share (net income plus goodwill amortization) was $0.23 for the first
quarter versus $0.09 in the first quarter of the prior year, an increase of
156%.
Revenues for the three months ended March 31, 1998 were $263.8 million
with total unit sales of 14,694. As compared to the three months ended March
31, 1997, this represented an increase in revenues of 167.0% from $98.8
million and an increase in unit sales of 152.8% from 5,812. Gross profits
increased 213.3% to $35.2 million for the first three months of 1998, as
compared to $11.2 million for the same period of 1997. As a percentage of
revenues, gross profits increased to 13.3% from 11.4%.
Operating income for the three months ended March 31, 1998 increased
241.5% to $7.7 million from $2.3 million for the three months ended March 31,
1997. As a percentage of total revenues, operating income increased to 2.9%
from 2.3%.
Earnings before taxes and net income after taxes were $3.5 million and $21
million, respectively, for the first quarter of 1998, representing increases
of 275.2% from $0.9 million and 295.2% from $0.5 million, respectively, for
the first quarter of 1997. As a percentage of total revenues, earnings before
taxes increased to 1.3% from 0.9% and net income after taxes increased to 0.8%
from 0.6%.
Revenues on a same store basis increased 3.2% To $101.9 million from $98.8
million and same store gross profits increased 6.6% to $12.0 million from
$11.2 million. Same store level income before taxes increased 26.1% from the
prior year.
"Our results in the first quarter further demonstrate our ability to
integrate and improve operations of acquired dealerships," stated 0. Bruton
Smith, Sonic Automotive's Chairman and Chief Executive Officer. "We improved
vehicle gross margins, reduced our floor plan interest expense as a percentage
of sales and continued to improve our finance and insurance revenues," stated
Mr. Smith.
Mr. Smith also stated, "We are improving margins in our existing business
through improvement in inventory management, application of our purchasing
power and sharing best practices. The motivational power of ranking and
comparing dealership performance and sharing best practices has exceeded our
expectations. We believe, over the long term, we can achieve performance in
all of our dealerships near the level of our best current performers."
Included herein are forward-looking statements, including statements with
respect to anticipated revenue growth. There are many factors which affect
management's views about future events and trends of the Company's business.
These factors involve risk and uncertainties that could cause actual results
or trends to differ materially from management's view, including without
limitation economic conditions, risks associated with acquisitions and the
risk factors set forth from time to time in the Company's filings with the
Securities and Exchange Commission.
Results of Operations (Unaudited)
(in thousands, except per share and unit data amounts)
Three Months Ended March 31
1997 1998
New Units 3,020 6,617
Used Units 1,269 4,333
Total Units Retailed 4,289 10,950
Wholesale Units 1,523 3,744
Revenues
New Vehicles $62,885 $153,730
Used Vehicles 15,565 56,500
Wholesale Vehicles 7,155 18,339
Total Vehicles 85,605 228,569
Parts & Service 10,979 28,965
Finance & Insurance 2,201 6,247
Total Revenues $98,785 $263,781
Total Gross Profit $11,228 $ 35,181
SG&A Expenses $ 8,748 $ 26,640
Depreciation & Amortization $ 218 $ 815
Operating Income $ 2,262 $ 7,726
Interest Expense $ 1,470 $ 4,296
Other Income $ 134 $ 44
Income Before Taxes $ 926 $ 3,474
Income Taxes $ 339 $ 1,338
Income Before Minority Int. $ 587 $ 2,136
Minority Interest $ 46 $ --
Net Income $ 541 $ 2,136
Diluted earnings per share $ 0.09 $ 0.19
Weighted average shares
outstanding 6,250 11,374
SOURCE Sonic Automotive, Inc.