Sonic Automotive, Inc. · NYSE:SAH
Sonic Automotive — Investor Presentation (April 2023)
42 slides from Sonic Automotive's investor presentation, Apr 27, 2023
Slide 1: Sonic Automotive – Investor Presentation April 2023
® Sonic Automotive – Investor Presentation April 2023 Updated April 27, 2023 Exhibit 99.2
Slide 2: Forward-Looking Statements
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 assumptions regarding our
Slide 3: Company Overview
3 Company Overview
Slide 4: Sonic Automotive: Who We Are
4 ® Sonic Automotive: Who We Are QUICK FACTS (NYSE: SAH) a Fortune 500 Company and One of the Nation’s Largest Automotive Retailers 173 25+ 25 17 $14.0 Billion $2.3 Billion 103K New Vehicles Sold 173K Total Revenues Automotive Brands Locations Used Vehicles Sold Collision Centers States Gross Profit
Slide 5: Investment Highlights
5 Investment Highlights Multiple Growth And Profit Drivers For Franchised Dealerships Segment Unique, High Return Potential EchoPark Business Model Broad Revenue Stream Diversification Complementary Relationship Between Operating Segments Disciplined Capital Allocation To Drive Shareholder Returns F
Slide 6: Revenue Composition by Geography
6 Revenue Composition BY GEOGRAPHY TX 26% CA 22% CO 8% TN 7% ID 6% FL 6% AL 5% NC 4% GA 4% VA 2% MD 2% SC 2% All Others 6% Broad Geographic Distribution Geographic Footprint, Revenue Streams and Brand Mix Offer Attractive Diversification Across the Automotive Retail Space Note: Percentages are Perce
Slide 7: Revenue Composition – Diversified Revenue Streams
7 Revenue Composition – Diversified Revenue Streams Note: Percentages are Percent of Total for the Year Ended December 31, 2022 5% 29% 11% 34% 43% 8% 41% 29% Revenue Gross Profit New Vehicle Used Vehicle (Including Wholesale) Parts, Service & Collision Repair ("Fixed Operations") Finance & Insurance
Slide 8: EchoPark Automotive – A Unique Growth Story
8 ® EchoPark Automotive – A Unique Growth Story Growing Nationwide Distribution Network Unique, High Return Potential Business Model Focus On High Quality Pre-Owned Vehicles, In-Store or Online Expect To Reach 90% Of U.S. Population By 2025 Priced Up To $3,000 Below Market With Simplified, Easy Purc
Slide 9: Strategic Focus
9 Strategic Focus • Continued Growth Opportunity In Parts & Service, F&I Per Unit • Ongoing Profitability Enhancement Through SG&A Expense Control, Inventory Management • Pursue Strategic Acquisition Opportunities As Market Evolves • Utilize Existing Infrastructure To Support Omnichannel Distributio
Slide 10: Strong Balance Sheet And Liquidity
10 Strong Balance Sheet And Liquidity March 31, 2023 December 31, 2022 (In Millions) Cash and cash equivalents 160.2$ 229.2$ Floor plan deposit balance 272.0 272.0 Availability under the 2021 Revolving Credit Facility 294.0 292.9 Availability under the 2019 Mortgage Facility 166.4 - Total available
Slide 11: Share Repurchase Update
11 Share Repurchase Update ($ in Millions) Share Repurchase Authorization Remaining at December 31, 2022 464.3$ Q1 2023 Share Repurchase Activity (90.7) Remaining Authorization 373.6$ 43.1 41.8 40.7 36.2 35.3 30.0 35.0 40.0 45.0 Dec 2019 Dec 2020 Dec 2021 Dec 2022 Mar 2023 (T ot al C la ss A a nd C
Slide 12: Franchised Dealerships
12 Franchised Dealerships
Slide 13: Franchised Dealerships
13 New & Used Vehicle Sales Parts & Service (P&S) Finance & Insurance (F&I) ® Franchised Dealerships Franchised Dealerships110 Brands, Luxury Weighted25+ Diversified Revenue Streams • New & Used Vehicle Sales • Parts Service (P S) • Finance & Insurance (F&I) Collision Repair Centers17 18 States Stab
Slide 14: Franchised Dealerships – Geographic Footprint
14 Franchised Dealerships – Geographic Footprint Diversified Geographic Market Platform 110 Stores, 25+ Brands, 17 Collision Repair Centers
Slide 15: Franchised Dealerships – Strategic Growth Levers
15 Franchised Dealerships – Strategic Growth Levers Mature Cash Flows + Multiple Growth Drivers Pursue Strategic Acquisitions Opportunities Grow Parts and Service Retention Maximize F&I Penetration High Used Vehicle Volume Throughput Data-Driven Inventory Management Apply EchoPark Learnings Develop
Slide 16: EchoPark
16 EchoPark
Slide 17: EchoPark – Brand Promise
17 EchoPark – Brand Promise Up To 40% Below New Vehicle Price Up To $3,000 Below Used Vehicle Market Price High Quality Pre-Owned Vehicles With Available Warranty Transparent Guest-Centric Experience New Car Feel Without The New Car Price Complete Purchase In Under An Hour Free CARFAX Report With Ev
Slide 18: EchoPark – Developing Nationwide Distribution Network
18 EchoPark – Developing Nationwide Distribution Network Achieved >50% Population Coverage To Date Target 90% Population Coverage By 2025 Note: Future locations and U.S. population coverage are based on projections. Actual results may differ. See “Forward-Looking Statements.” Existing Delivery Cente
Slide 19: EchoPark – Addressable Market Opportunity
19 EchoPark – Addressable Market Opportunity * Share Of Vehicles That Fit Core1-4-Year-Old Model In Existing EchoPark Markets Target 90% Population Coverage By 2025 With Growing Nationwide Distribution Network Target 10% Market Share Already Achieving This Share* In Most Mature Market Priced Up to $
Slide 20: EchoPark – Delivery Center Model
20 EchoPark – Delivery Center Model Existing Retail Hub Example Delivery Center Market Coverage Opportunity Delivery Center Model • Utilize Nearby Retail Hub For Inventory Storage And Reconditioning (Asset Light Expansion) • Advertise Inventory Online In Surrounding Markets • Drive Incremental eComm
Slide 21: EchoPark – Industry Headwinds & Action Plan
21 EchoPark – Industry Headwinds & Action Plan Industry Headwinds • Supply Chain Disruption Continues To Suppress New Vehicle Production And Inventory Levels – Began To Ease In Q1 2023 • Rental Car Companies Continue To Be Net Buyers In Used Vehicle Auction Market, But Not Paying As Much Above Marke
Slide 22: EchoPark Segment – Growth Path
22 EchoPark Segment – Growth Path 212 660 881 920 764 941 1,136 1,585 1,685 1,673 2,049 2,400 4,496 5,518 7,459 7,698 8,762 11,051 12,587 13,206 12,676 13,986 13,207 15,127 14,841 19,670 21,261 21,255 15,649 14,931 16,496 15,245 17,435 19,980 $- $100 $200 $300 $400 $500 $600 $700 (In M illi on s) Qu
Slide 23: EchoPark Segment – Adjusted EBITDA Trend
23 EchoPark Segment – Adjusted EBITDA Trend $4.9 $4.9 $6.4 $5.3 $5.2 $5.6 $3.2 ($3.6) $5.3 ($10.9) ($30.5) ($19.2) ($36.2) ($30.8) ($23.7) ($24.1) ($24.4) $0.7 $0.9 $1.5 $2.0 $4.6 $6.7 $3.4 $0.5 $(1.3) $(12.5) $(40) $(30) $(20) $(10) $- $10 Q 1 2019 Q 2 2019 Q 3 2019 Q 4 2019 Q 1 2020 Q 2 2020 Q 3 2
Slide 24: Powersports
24 Powersports
Slide 25: Powersports – Opportunistic Growth
25 Powersports – Opportunistic Growth • Growth Via Acquisition At Attractive Earnings Multiples • Consolidation Opportunity In A $34 Billion Market* Where 85% Of U.S. Dealers Own A Single Location • Drive Profitability Enhancement Through Technology And Process Development • Generate Higher Margins
Slide 26: Omnichannel Strategy
26 Omnichannel Strategy
Slide 27: Buy & Sell Your Way
27 Buy & Sell Your Way • Complete A Traditional Vehicle Purchase Experience With A Modern, Technology- Enabled Approach • Can Be Completed In Under An Hour • Research Online, Utilize Chat, Text, Phone, Zoom To Reduce In-Person Process • Review And Select Insurance Products And Financing Options • In
Slide 28: New EchoPark.com Results to Date
28 New EchoPark.com Results to Date Rolled Out To 100% Of National Web Traffic In June 2022 Conversion Rate 30% Higher Compared To Old Website Q1 2023 F&I of $2,120 Per Unit Exceeding Projections For End-To-End Online F&I Product Sales Nearly 40% Of Vehicles Sold Out Of Market In Q1 2023, Driving In
Slide 29: Appendix
29 Appendix
Slide 30: GAAP Income Statement Annual Trend – Consolidated
30 GAAP Income Statement Annual Trend – Consolidated NM = Not MeaningfulNote: Earnings (Loss) Per Share and Gross Profit Per Unit Metrics Are Calculated Based On Actual Unrounded Amounts FY 2022 Better / (Worse) % Change (In millions, except unit, per unit, and per share data) FY 2022 FY 2021 FY 202
Slide 31: Non-GAAP Reconciliation – Annual Trend – Consolidated
31 Non-GAAP Reconciliation – Annual Trend – Consolidated NM = Not Meaningful Note: Earnings (Loss) Per Share and SG&A Expenses As A Percentage Of Gross Profit Metrics Are Calculated Based On Actual Unrounded Amounts Note: Balance Sheet Amounts Are As Of December 31 For The FY Then Ended, Balance She
Slide 32: GAAP Income Statement Quarterly Trend – Consolidated
32 GAAP Income Statement Quarterly Trend – Consolidated NM = Not MeaningfulNote: Earnings (Loss) Per Share and Gross Profit Per Unit Metrics Are Calculated Based On Actual Unrounded Amounts Q1 2023 Better / (Worse) % Change (In millions, except unit, per unit, and per share data) Q1 2023 Q4 2022 Q3
Slide 33: Non-GAAP Reconciliation – Quarterly Trend – Consolidated
33 Non-GAAP Reconciliation – Quarterly Trend – Consolidated NM = Not MeaningfulNote: Earnings (Loss) Per Share and SG&A Expenses As A Percentage Of Gross Profit Metrics Are Calculated Based On Actual Unrounded Amounts Q1 2023 Better / (Worse) % Change (In millions, except per share data) Q1 2023 Q4
Slide 34: GAAP Income Statement – Quarterly Trend – Franchised Dealerships Segment
34 GAAP Income Statement – Quarterly Trend – Franchised Dealerships Segment NM = Not MeaningfulNote: Gross Profit Per Unit Metrics Are Calculated Based On Actual Unrounded Amounts Q1 2023 Better / (Worse) % Change (In millions, except unit and per unit data) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 S
Slide 35: Non-GAAP Reconciliation – Quarterly Trend – Franchised Dealerships Segment
35 Non-GAAP Reconciliation – Quarterly Trend – Franchised Dealerships Segment NM = Not MeaningfulNote: SG&A Expenses As A Percentage Of Gross Profit Metrics Are Calculated Based On Actual Unrounded Amounts Q1 2023 Better / (Worse) % Change (In millions) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Sequen
Slide 36: GAAP Income Statement – Quarterly Trend – EchoPark Segment
36 GAAP Income Statement – Quarterly Trend – EchoPark Segment NM = Not MeaningfulNote: Gross Profit Per Unit Metrics Are Calculated Based On Actual Unrounded Amounts Q1 2023 Better / (Worse) % Change (In millions, except unit and per unit data) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Sequential Year
Slide 37: Non-GAAP Reconciliation – Quarterly Trend – EchoPark Segment
37 Non-GAAP Reconciliation – Quarterly Trend – EchoPark Segment NM = Not MeaningfulNote: SG&A Expenses As A Percentage Of Gross Profit Metrics Are Calculated Based On Actual Unrounded Amounts Q1 2023 Better / (Worse) % Change (In millions) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Sequential Year-Over
Slide 38: GAAP Income Statement – Quarterly Trend – Powersports Segment
38 GAAP Income Statement – Quarterly Trend – Powersports Segment NM = Not MeaningfulNote: Gross Profit Per Unit Metrics Are Calculated Based On Actual Unrounded Amounts Q1 2023 Better / (Worse) % Change (In millions, except unit and per unit data) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Sequential Y
Slide 39: Non-GAAP Reconciliation – Quarterly Trend – Powersports Segment
39 Non-GAAP Reconciliation – Quarterly Trend – Powersports Segment NM = Not MeaningfulNote: SG&A Expenses As A Percentage Of Gross Profit Metrics Are Calculated Based On Actual Unrounded Amounts Q1 2023 Better / (Worse) % Change (In millions) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Sequential Year-O
Slide 40: Non-GAAP Reconciliation – Adjusted EBITDA – EchoPark Segment
40 Non-GAAP Reconciliation – Adjusted EBITDA – EchoPark Segment (In millions) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Income (loss) before taxes 2.0$ (14.4)$ (32.9)$ (26.8)$ (35.3)$ (34.2)$ (31.1)$ (238.2)$ (46.8)$ Non-floor plan interest 0.4 0.3 0.3 0.7 0.7 1.0 1.1 0
Slide 41: ® ®
® ®
Slide 42: Investor Relations Contact
® Investor Relations Contact: Danny Wieland, Vice President, Investor Relations & Financial Reporting Sonic Automotive Inc. (NYSE: SAH) Email: ir@sonicautomotive.com Investor Relations Website: ir.sonicautomotive.com
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