Slide 1: Q3 Earnings Review
Sonic Automotive, Inc. 1 Q3 Earnings Review October 25, 2011 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: Sonic Automotive Q3 2011
Sonic Automotive, Inc. 3 Sonic Automotive Q3 2011 o Quarter in Review o Financial Results o Operations Recap o Summary and Outlook
Slide 4: Overall Results
Sonic Automotive, Inc. 4 Overall Results Grow the base business Revenues up 13% New vehicle revenue up 13%; Volume exceeds industry growth Used revenue up 17% F&I revenue up 20% Fixed Operations revenue up 5% SG&A to Gross declined to 78.8% Income from continuing operations up 39% Q3 2011 diluted EP
Slide 5: Third Quarter Results
Sonic Automotive, Inc. Third Quarter Results 5 Q3 2011 B/(W) than Q3 2010 Focus on base business is driving growth Double-digit revenue growth continues J3 increasing vehicle shipments $ % Revenue $ 1,993 $ 223 13% Gross Profit $ 303 $ 21 7% Operating Profit $ 54 $ 15% Interest & Other $ 22 $ 8% Con
Slide 6: SG&A bps
Sonic Automotive, Inc. SG&A 150 bps 6 Continue to drive YOY SG&A to Gross % down Controlling expenses and higher gross generation (amounts in millions) Q3 2011 Q3 2010 Sonic Automotive, Inc. $ $ Gross Profit $ 303 $ 282 SG&A : Advertising $ 14 $ 13 Compensation Rent & Related Other SG&A Total $ 239
Slide 7: Capital Spending
7 (amounts in millions) YTD Q3 2011 Expected Q4 2011 Estimated 2011 Sonic Automotive, Inc. Capital Spending Real Estate Acquisitions All Other Cap Ex Subtotal Less: Mortgage Funding Total Cash Used – Cap Ex $ 80 $ 136 (54) $ 11 $ 17 (15) $ 91 $153 (69) $ 82 $ 2 $ 84
Slide 8: New Retail Vehicles
Sonic Automotive, Inc. New Retail Vehicles 8 8.4% 6.9% (2.9%) Sonic Mix Adjusted Industry SAAR Q3 2011 Q3 2010 B/(W) Volume 27,941 25,780 8.4% Selling Price $ 35,997 $ 34,381 4.7% Gross Margin % 6.6% 6.6% 0 bps GPU $ 2,391 $2,267 $124 Gross Profit $ 67 million $ 58 million 14.3%
Slide 9: Used Retail Vehicles
Sonic Automotive, Inc. Used Retail Vehicles 9 * - Includes: used gross + used reconditioning gross + used F&I gross Q3 2011 Q3 2010 B/(W) Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 12% 24% 18% 26% 20% 14% 17% 17% 11% 16% YOY Unit Volume Change 10 Consecutive Quar
Slide 10: Fixed Operations
Fixed Operations 10 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 $284 $285 $292 $300 $298 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 $141 $141 $144 $148 $145 Revenue Gross Profit Increase in wholesale parts activity pressured margin rate Customer pay up 4% Overall gross profit up 3% Sonic Automotive, Inc. 3
Slide 11: Summary
Sonic Automotive, Inc. 11 Summary Base business continues to grow New vehicle market share continues to increase Used retail vehicle volume continues to grow at double- digit rate Automotive retail industry continues its steady recovery Forecasting a 12.5 – 12.7 million SAAR Expect Japanese brands t