Sonic Automotive, Inc. · NYSE:SAH
Sonic Automotive — Q1 2013 Earnings Presentation
14 slides from Sonic Automotive's earnings presentation, Apr 23, 2013
Slide 1: Q1 2013 Earnings Review
1 Q1 2013 Earnings Review April 23, 2013 Sonic Automotive, Inc. Exhibit 99.2
Slide 2: Forward-Looking Statements
Sonic Automotive, Inc. 2 Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events, are not historical facts and are based on our current expectations and ass
Slide 3: Contents
Sonic Automotive, Inc. 3 Contents Quarter in Review Financial Results Operations Recap Summary and Outlook
Slide 4: Overall Results
Sonic Automotive, Inc. 4 Overall Results Revenue Growth – Up 8.1% New retail revenue up 11.7% - volume up 7.4% Used unit volume up 3.9% F&I revenue up 13.7% Fixed operations revenue up 1.4% SG&A at 78.5% - Up 40 bps from 78.1% Income from continuing operations of $21.7 million, up 2.6% from the prio
Slide 5: Q1 2013 Results B/(W) than Q1 2012
Sonic Automotive, Inc. Q1 2013 Results B/(W) than Q1 2012 5 (amounts in millions, except per share data) Q1 2013 $ % Revenue $ 2,083 $ 156 8% Gross Profit $ 313 $ 9 3% Operating Profit $ 55 ($ 1) (1%) Interest & Other ($ 19) $ 1 6% Continuing Ops: Profit (after tax) $ 22 $ 1 3% Diluted EPS $ 0.41 $
Slide 6: SG&A to Gross Targeting Below 77% for the Full Year
SG&A to Gross Targeting Below 77% for the Full Year 78.1% 78.5% Sonic Automotive, Inc.
Slide 7: Capital Spending
Sonic Automotive, Inc. 7 Capital Spending (amounts in millions) YTD 2013 Estimated 2013 Real Estate Acquisitions $ 32.7 $ 67.3 All Other Cap Ex 26.6 105.3 Subtotal $ 59.3 $ 172.6 Less: Mortgage Funding (19.2) (70.1) Total Cash Used – Cap Ex $ 40.1 $ 102.5
Slide 8: Debt Covenants
Sonic Automotive, Inc. 8 Covenant Actual Q1 2013 Debt Covenants Compliant with all Covenants Liquidity Ratio >= 1.05 1.12 Fixed Charge Coverage Ratio >= 1.20 1.68 Total Lease Adjusted Leverage Ratio <= 5.50 3.90
Slide 9: Share Repurchases
Sonic Automotive, Inc. 9 (shares in thousands) Shares Average Price Unused authorization of approximately $137.2 million today Share Repurchases Q1 2013 Activity $23.27
Slide 10: New Retail Vehicles
Sonic Automotive, Inc. Q1 2013 Q1 2012 B/(W) 10 New Retail Vehicles Volume 30,590 28,490 7% Selling Price $ 35,996 $ 34,610 4% Gross Margin % 5.9% 6.3% (40 bps) GPU $ 2,132 $ 2,182 ($ 49) Gross Profit $ 65 million $ 62 million 5% SAAR (includes fleet) 15.3 million 14.1 million 8.5%
Slide 11: Used Retail Vehicles
Sonic Automotive, Inc. Q1 2013 Q1 2012 B/(W) 11 Used Retail Vehicles * - Includes front-end gross plus F&I related gross and fixed operations related gross Retail Volume 26,469 25,478 4% Used Retail GPU $ 1,437 $ 1,546 ($ 110) Used Related Retail Gross* $ 83 million $ 81 million $ 2 million Used to
Slide 12: Fixed Operations
Sonic Automotive, Inc. 12 B/(W) than Q1 2012 Fixed Operations QTD YOY Gross Profit Change Breakdown: • Customer Pay Up 1.4% • Whsl. Parts Up 0.3% • Internal & Sublet down 1.5% • Warranty Up 4.0% (amounts in millions) Q1 2013 $ % Revenue $ 297 $ 4 1.4% Gross Profit $ 144 $ 1 1.0% Gross up 4.2% adjust
Slide 13: Summary
Sonic Automotive, Inc. 13 Summary Record Q1 revenues of $2.1 billion Record new and used retail volumes 14 consecutive quarters of quarter-over-quarter revenue growth Double digit EPS growth of 14% Inventory in good shape going into Q2 Business environment continues to be favorable to retail automot
Slide 14: 14 Sonic Automotive, Inc.
14 Sonic Automotive, Inc.