Sonic Automotive, Inc. · NYSE:SAH
Sonic Automotive — Q4 2009 Earnings Presentation
27 slides from Sonic Automotive's earnings presentation, Feb 23, 2010
Slide 1: Sonic Automotive
Slide 2: Cautionary Notice - Forward-Looking Statements
This presentation contains statements that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are not historical facts, but only predictions by our company an
Slide 3: Fourth Quarter 2009 Earnings Review
Fourth Quarter 2009 Earnings Review February 23, 2010
Slide 4: Sonic Automotive Q4 2009 Quarter in Review
Sonic Automotive Q4 2009 Quarter in Review Financial Review Operations Review Closing Comments
Slide 5: Overall Results - Q4
Overall Results - Q4 New retail vehicle margins up 60 bps from last year Used vehicle unit volume up 18.3% Revolver completely paid off Used vehicle line paid down below available capacity Credit facility renewal completed in January Recorded non-cash charges related to lease exit accruals (primaril
Slide 6: Overall Results - Q4 (Adjusted)
Overall Results - Q4 (Adjusted) * * * See Appendix for reconciliation to GAAP/Reported amounts.
Slide 7: Overall Results - YTD (Adjusted)
Overall Results - YTD (Adjusted) * See Appendix for reconciliation to GAAP/Reported amounts. * *
Slide 8: EBITDA - All Operations
Stack 1 SAAR Column 3 Column 4 Column 5 Column 6 Column 7 Column 8 Column 9 Column 10 Column 11 Column 12 Column 13 Column 14 Column 15 Column 16 2007 241 16.1 2008 151 13.2 2009 175 10.4 EBITDA - All Operations (amounts in millions) Note: See appendix for reconciliation to GAAP/Reported amounts. 16
Slide 9: SG&A - Adjusted for Unusual Items
SG&A - Adjusted for Unusual Items * See Appendix for reconciliation to GAAP/Reported amounts. * *
Slide 10: Capitalization
Capitalization Excludes discount/premium. $146.3 million reduction, or 19.5%, from 2008 $353.8 million decrease from 2008
Slide 11: Major Debt Maturities
Major Debt Maturities Balance sheet restructured and improved (amounts in millions)
Slide 12: Debt Covenants
Debt Covenants Compliant with all covenants
Slide 13: Capital Spending
yy Capital Spending (amounts in millions) Q1 2009 Q2 2009 Q3 2009 Q4 2009 FY2009 Capital Spending Facility Improvement $ 146 $ 40 $ 48 $ 43° § 277 Mortgage Funding - - - 63 63 Net Cash Used - Facility Related $ 146 $ 40 $ 48 $ (20) $ 214 Maintenance Cap Ex 58 22 3.2 22 13.4 Total Cash Used - Cap Ex
Slide 14: New Vehicle
New Vehicle * Bps difference between Sonic and the local market competition. Market Share New Retail Vehicle
Slide 15: Used Vehicles
Used Vehicles * Excludes any impact from incremental F&I sales and Fixed Operations business. *
Slide 16: Fixed Operations
Fixed Operations Continuing Operations 20 bps Improvement (in millions) QTD Revenue 2009 2008 Change Service Parts Body Shop Total $110.7 145.9 12.1 $268.7 $109.9 145.2 13.3 $268.4 0.7% 0.5% (9.0%) 0.1% QTD Gross Margin 2009 2008 Service Parts Body Shop Total 70.9% 34.1% 56.7% 50.3% 70.2% 34.4% 56.3
Slide 17: 2010 Outlook
2010 Outlook We expect SAAR to average around 11 million Short-term borrowing rates expected to rise steadily over the year Q1 2010 used vehicle GPU expected to be lower than Q1 2009 level Used vehicle unit volumes expected to increase but not at the rate experienced in 2009 Stable inventory balance
Slide 18: Summary
Summary New vehicle business has stabilized Used business continues to grow Successfully repositioned our balance sheet Company is positioned for future growth
Slide 19: Appendix
ry R———— APPENDIX
Slide 20: Reconciliation of Non-GAAP Financial Information
Reconciliation of Non-GAAP Financial Information
Slide 21: Reconciliation of Non-GAAP Financial Information
Reconciliation of Non-GAAP Financial Information
Slide 22: Reconciliation of Non-GAAP Financial Information
Reconciliation of Non-GAAP Financial Information
Slide 23: Reconciliation of Non-GAAP Financial Information
Reconciliation of Non-GAAP Financial Information
Slide 24: Reconciliation of Non-GAAP Financial Information
Reconciliation of Non-GAAP Financial Information
Slide 25: Reconciliation of Non-GAAP Financial Information
Reconciliation of Non-GAAP Financial Information
Slide 26: Reconciliation of Non-GAAP Financial Information
Reconciliation of Non-GAAP Financial Information
Slide 27: Slide 27