Sonic Automotive, Inc. · NYSE:SAH
Sonic Automotive — Q2 2012 Earnings Presentation
13 slides from Sonic Automotive's earnings presentation, Jul 23, 2012
Slide 1: Q2 2012 Earnings Review
Q2 2012 Earnings Review July 23, 2012 Sonic Automotive, Inc. 1 Exhibit 99.2
Slide 2: Forward-Looking Statements
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 assumptions regarding our bu
Slide 3: Quarter in Review
Sonic Automotive, Inc. Quarter in Review Financial Results Operations Recap Summary and Outlook o o o o Sonic Automotive Q2 2012 3
Slide 4: Overall Results
Sonic Automotive, Inc. Overall Results Revenue Growth – up 12.3% New retail vehicle revenue up 21.3% - volume up 22.3% - exceeds industry retail volume growth Pre-owned revenue up 4.0% F&I revenue up 18.0% Fixed Operations revenue up 3.2% SG&A at 77.8% - in line with full year projections Income fro
Slide 5: Q2 2012 Results B/(W) than Q2 2011
Q2 2012 Results Sonic Automotive, Inc. B/(W) than Q2 2011 5 (amounts in millions, except per share data) Q2 2012 $ % Revenue Gross Profit Operating Profit Continuing Ops: Profit (after tax) Diluted EPS $ 2,185 $ 239 12% $ 321 $ 15 5% $ 60 $ 1% $ 28 $ 5 20% $ 0.46 $ 0.08 21%
Slide 6: SG&A to Gross bps Improvement from Q1
SG&A to Gross 160 bps Improvement from Q1 Target 78% for Full Year 2012 Sonic Automotive, Inc.
Slide 7: Capital Spending
Sonic Automotive, Inc. Capital Spending (amounts in millions) YTD Q2 2012 Estimated 2012 7 Real Estate Acquisitions $ 4.8 $ 14.5 All Other Cap Ex 29.7 128.9 Subtotal $ 34.5 $ 143.4 Less: Mortgage Funding (10.7) (48.5) Total Cash Used – Cap Ex $ 23.8 $ 94.9
Slide 8: Debt Covenants
Sonic Automotive, Inc. Debt Covenants Compliant with all Covenants Covenant Actual Q2 2012 8 Liquidity Ratio >= 1.05 1.16 Fixed Charge Coverage Ratio >= 1.20 1.56 Total Lease Adjusted Leverage Ratio <= 5.50 3.88
Slide 9: New Vehicles
New Vehicles Includes Fleet (1) Source: JD Power Sonic Automotive, Inc. Q2 2012 Q2 2011 B/(W) 9 Retail Revenue Retail Volume Selling Price Gross Margin % GPU Retail Gross Profit $1.2 billion 34,396 $ 34,213 6.0% $ 2,039 $ 70 million $1.0 billion 28,125 $ 34,483 6.8% $ 2,347 $ 66 million 21.3% 22.3%
Slide 10: Pre-Owned Retail Vehicles
Pre-Owned Retail Vehicles Q2 2012 Q2 2011 B/(W) * - Includes: pre-owned vehicle + reconditioning + F&I gross Continue to make progress toward our goal of 100 per store per month Sonic Automotive, Inc. 10 Retail Volume 27,528 26,799 2.7% Revenue $550 million $529 million 4.0% Pre-Owned Related Gross*
Slide 11: Fixed Operations
B/(W) than Q2 2011 Q2 YOY Gross Profit Change Breakdown: Fixed Operations Sonic Automotive, Inc. 11 • Customer Pay Up 3.0% • Whsl. Parts Up 3.1% • Internal & Sublet Up 12.9% • Warranty Down 9.4% (amounts in millions) Q2 2012 $ % Revenue $ 305 $ 9 3.2% Gross Profit $ 149 $ 3 2.2%
Slide 12: Summary and Outlook
Sonic Automotive, Inc. 12 Summary and Outlook Revenue continues to grow in all categories Investments in technology and training are progressing as planned Automotive retail industry outlook remains positive Raising 2012 continuing operations diluted earnings per share guidance of $1.62 - $1.70.
Slide 13: Sonic Automotive, Inc. 13
Sonic Automotive, Inc. 13