Sonic Automotive, Inc. · NYSE:SAH
Sonic Automotive — Q1 2009 Earnings Presentation
18 slides from Sonic Automotive's earnings presentation, May 8, 2009
Slide 1: Exhibit 99.2
Exhibit 99.2 Exhibit 99.2
Slide 2: Cautionary Notice Regarding Forward-Looking Statements
Cautionary This 1934. These company’s You in Sonic theare presentation Automotive’s forward-looking forward-looking statements cautioned objectives, Noticegenerally contains that Regarding Form plans these statements statements 10-K statements can or forward-looking Forward-Looking goals be foras id
Slide 3: First Quarter 2009 Earnings Review May 8, 2009
First Quarter 2009 Earnings Review May 8, 2009
Slide 4: Conference Call Topics
Sonic Automotive Conference Quarterly Financial Operations Closing Comments Review Overview Review Call Topics Q1 2009
Slide 5: Q1 2009 Quarter in Review
Quarter Strong Gained Used Expanded Cost Made Successfully Strategic optimization vehicle money performance new ininitiatives service Review vehicle restructured performance customer continue market in a tough debt solid share pay toenvironment gain – CPOtraction again outperformed industry
Slide 6: Financial Review
Financial (amounts Three Revenue Gross SG&A of Operating Income Continuing Discontinued Diluted 3/31/2009 Reported FSP Debt Adjusted Gross APB restr’ing Months Profit Margin as from EPS Profit $$Review in 14-1 %Margin 3/31/2008 1,185.4 0.16 0.10 Operations millions, $-from Operations 18.4% Continuin
Slide 7: Financial Review: SG&A
Financial 83.2% 92.1% SG&A 79.0% 13.0% 12.1% 14.9% 11.0% 50.7% 56% 5.3% Q1 Advertising Rent Other Total Advertising, 2008 55.9% & Comp SG&A 5.0% Fixed 82.2% 19.1% costs 14.3% 53.1% Related Q4 Review 4.4% & 2008 Total expenses less restructuring 51.5% Other Q1 Comp, Variable 2009 were and down other$
Slide 8: Financial Review: Q1 Revenue by Brand
Financial Q1 0.7% 5.8% 14.9% Other 4.2% 0.4% 0.6% 5.3% Toyota 8.2% Chevrolet 10.9% Total Chevy Cadillac Hummer Saab Buick Saturn Chrysler Ford Volvo 20.2% 1.5% Revenue 62Detroit 11.6% continuing Non-Luxury Luxury GM 71of 26.9% 10.6% 19franchises Honda franchises franchise Mercedes 17 franchise franc
Slide 9: Financial Review: Domestic Exposure
Financial Domestic (dollars Store New Parts Factory (1) (2) (3) Vehicle Inventory Count 96% Receivables inReview Exposure millions, (3) of Inventory Includes Store dealerships 1.5 4Volvo 2611.5 count as 0.5 12of as of $4.3 7.2 12.5 March Mayare 3.7$8,Chevy/Cadillac. 131.6 31, 2009) 2009 $ 75.9 Chrys
Slide 10: Financial Review: Convertible Notes Restructuring
Financial 5.25% (mils) Amount Retired Notes Lien Issuance Total Debt Extended Competitive Two years Convertible Restructuring $to Convertible 89.6 with be of Review maturity before new Class Restructured coupon Cash 6.00% Notes A conversion atNotes Results Common Maturity Senior $$85.6 Maturing 89.6
Slide 11: Financial Review: Debt Covenants
Financial Debt Q1 Actual Covenant Liquidity Fixed Secured (1) Compliant effective Revised Covenants Charge Debt Review Ratio 2009 with Q2 Coverage toCovenant >= all EBITDA covenants 1.15 Ratio 1.16 (1) Ratio >= >=<= 1.10 1.20 2.25 1.23 1.50 >=<= 1.15 2.25
Slide 12: Operations Review: Same Store Revenue
Operations Same Three M % New F&I Variable Fleet Used Fixed Total ar-09 31.1 retail 17.0 $1,178.7 retail wholesale Store Operations Months Mar-08 Retail 43.4 64.7 $289.3 Review Revenue 570.1 Ended (12.3) $1,581.5 $(47.7) Change 32.1 890.5 320.7 239.1 $ 832.9 70.0 (28.3%) (73.7%) $(31.4) 249.8 Change
Slide 13: Operations Review: New Vehicle Inventory
Operations Sonic Jan South Total California Central Texas New * Feb inventory Sonic* vs. East Bps Mar Local Review difference 319 down Market 686 $139 688 between million Sonic and the local market competition.
Slide 14: Operations Review: Used Vehicles
Operations Same Chg. Q4:08 Retail Wholesale YOY Days % Q1 Preliminary over used Q4 Supply %Store Volume GPU Q1:09 30 better/ to - days Loss new Review Used $1,351 April 22.3 Q1 13,753 -old ratio ($2,548,557) worse Vehicle –29.4 $1,833 23.2% retail .90 15,110 (8.5)% (23.4)% (50.6)% –unit 21.9% all 35
Slide 15: Operations Review: Fixed Operations
Operations Same (6.0%) (0.5%) 0.0% (18.0%) (12.0%) Luxury Non Detroit Customer Service Parts Collision *Adjusted Luxury 0.7% Store (2.6%) 3Imports 0.8% (16.2%) (8.7%) Center Pay for Review Fixed Imports selling Warranty Total by (4.3%) +1.9% (10.2%) Department*: Operations Q1: (5.2%) days Internal R
Slide 16: Operations Review: Strategic Initiatives
Visited Tactical Reconfirm Strategic Market The Evaluate Support Feedback Strategy 1. 2. BDC 3. Menu/Merchandising Refining Refine Training “Playbook Phase Last Result Next internet North Share Sonic Update Execution Implementation III II process trade Eight Eight / –Sonic Debrief /–Monitoring Servi
Slide 17: Summary and Outlook
WeCommerce Summary Right Executing Used Fixed E Debt Second Overall Slightly Key 9.5-10.5m Detroit New Parts focused Assumptions margins restructuring and Vehicle sized Operations 3Quarter economic better uncertainty Service strategic SAAR the ondifficult, /stabilizing cost improving Outlook flat en
Slide 18: Slide 18