Sonic Automotive, Inc. · NYSE:SAH
Sonic Automotive — Q3 2010 Earnings Presentation
21 slides from Sonic Automotive's earnings presentation, Oct 26, 2010
Slide 1: Q3 Earnings Review
1 Q3 Earnings Review October 26, 2010 Exhibit 99.2
Slide 2: Cautionary Notice: Forward-Looking Statements
2 Cautionary Notice: 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 assumpt
Slide 3: Sonic Automotive Q3 2010 Agenda
3 Sonic Automotive Q3 2010 Strategy Update Quarter in Review Financial Results Operations Recap Closing Comments
Slide 4: Portfolio Growth (1997 - 2002)
4 Portfolio Growth (1997 - 2002) Domestic - 51% Import - 26% Luxury - 23% Acquisition Company that Operates Dealerships
Slide 5: Portfolio Enrichment (2003 - 2007)
5 Operating Company that Acquires Dealerships Portfolio Enrichment (2003 - 2007) Domestic - 27% Import - 30% Luxury - 43%
Slide 6: Investment Priorities
6 Workforce Stabilization Training Investment Operational Excellence "Playbooks" Technology Investment Customer Experience Generate Cash Investment Priorities Portfolio Maximization Grow our base business Reduce debt Own our land and facilities Predictable, Repeatable and Sustainable Optimize Asset
Slide 7: Overall Results - Q3 2010
7 Overall Results - Q3 2010 Revenues up 9% New vehicle revenue up against strong comp Used revenue up 20% Fixed Operations up 6% Debt reduction continues Redeemed $20m of senior sub notes Interest expense down $3.2m Announced Q4 redemption of 4.25% convertible notes Will reap the benefits of lower i
Slide 8: Quarterly Results (Adjusted)
Quarterly Results (Adjusted*) *See appendix for reconciliation to GAAP amounts 8
Slide 9: Adjusted EBITDA - All Operations
9 Adjusted EBITDA - All Operations
Slide 10: SG&A - Q3 2010
10 SG&A - Q3 2010 (1) Amounts adjusted for $0.6M hail damage charge. Unadjusted amounts are $33.5M for Other Fixed, $225.6M for Total SG&A, and 79.9% for SG&A % of Gross.
Slide 11: Liquidity
11 Liquidity (1)Excludes other non-public debt principal of $140.8 million and $137.5 million at December 31, 2009 and September 30, 2010, respectively. Retired $12 million of senior subordinated notes and $1 million of convertible notes in Q2. Redeemed an additional $20 million of senior subordinat
Slide 12: Debt Covenants
Debt Covenants Actual Memo 2012 Covenant Q3 2010 Covenant Liquidity Ratio >=1.00 1.15 Fixed Charge Coverage Ratio >=1.10 1.29 Total Senior Secured Debt to EBITDA Ratio <=2.25 1,12 Compliant with all Covenants
Slide 13: New Vehicle Revenue and Gross
New Vehicle 13 Revenue $ Gross $ Sequential revenue and gross increases since Q1 2010. (Q3 2009 included Cash for Clunker program) (amounts in millions)
Slide 14: Used Retail Vehicles - YOY Change
14 Used Retail Vehicles - YOY Change
Slide 15: Used Vehicle GP $ and GPU Up 9%
Used Vehicle GP $ and GPU 15 Up 9%
Slide 16: F&I Gross Profit
Millions F&I = GP $ (millions) Up 9% $47
Slide 17: Fixed Operations - Q3 2010
17 Fixed Operations - Q3 2010 Continuing Operations Revenue (amounts in millions) Revenue $ 5.6% Gross (amounts in millions) Gross Profit $ 2.8%
Slide 18: Summary
18 Summary New vehicle volume performed well considering strong import comps from CARS program Used retail vehicle volume and gross continue to grow F&I continues to benefit from growth in used volume Reinstated a small dividend given cash flow generation Will continue to bring back associate progra
Slide 19: Appendix
APPENDIX
Slide 20: Reconciliation of Non-GAAP Financial Information
20 Reconciliation of Non-GAAP Financial Information
Slide 21: Reconciliation of Non-GAAP Financial Information
21 Reconciliation of Non-GAAP Financial Information