Slide 1: Exhibit 99.2
Exhibit 99.2 Exhibit 99.2
Slide 2: Cautionary Notice Regarding Forward-Looking Statements
Cautionary This 1934. These company’s You in Sonic 2 theare presentation Automotive’s forward-looking forward-looking statements cautioned objectives, Noticegenerally contains that Regarding Form plans these statements statements 10-K statements can or forward-looking Forward-Looking goals be foras
Slide 3: Fourth Quarter 2008 Earnings Review April 1, 2009
Fourth Quarter 2008 Earnings Review April 1, 2009 3
Slide 4: Conference Call Topics
Sonic Store Conference Quarterly Financial Same 4 Automotive Review Overview and CallOperations Topics Q4 2008 Review Closing Comments
Slide 5: Quarter Review: Adapting to Market Challenges
Quarter ?Adapting Market Aug SAAR Manheim Gas Ensuring Reduced Suspended Strategic Generate 5 Prices Sep13.7 Challenges inOct Cap cost revenue liquidity Index Review to $3.64 dividend 12.5 Nov current ex reductions 110.7 10.6 $3.64 Decconditions 10.2 110.8 Jan $2.37 10.3 104.2 $1.77 9.698.3 $1.64 98
Slide 6: Financial Review
Financial (amounts Three 12/31/2008 Revenue Gross SG&A Income Diluted *Adjusted 6 Months Profit Margin as from EPS $1,255.6 Review in % for 12/31/2007 millions, $211.7 of from continuing 16.9% impairment Ended Gross continuing discontinued $1,740.3(27.9%) $269.1(21.3%) 15.5% Twelve except Profit* Ch
Slide 7: Financial Review: SG&A
Financial SG&A Q4 Amount% (Mils) As Lease Hurricane/Hail Total Adjusted 7 Reported 2008 $3.9 Exit Gross(Mils) Expenses Q4 $191.1 Review 1.8% of &2007 $195.0 Amount% Other Charges———8.0 $0.3 90.3% FY Gross(Mils) Accruals 92.1% 0.1% 2008 $194.5 of Amount% $18.3 $194.8 FY $3.9 2007 72.3% Gross(Mils) 1.
Slide 8: Financial Review: Cost Reductions
Financial Cost What $75million Discontinued Capital IMPLEMENTED Fixed Advertising Field FIXED TOTAL 2008 Ad Rent Other Variable 8 Spend Reduction Expense SG&A Restructuring has Variable 21 Fixed Compensation expenditures COST COST Compensation Comp Review been 6% of 20 Costs BREAKDOWN dividend struc
Slide 9: Financial Review: Capital Spending and Facility
Financial 2007 Capital Facility Real Maintenance Total Memo: 9 Estate 2008 $78.2 Spending Mortgage Improvement Review Projected 3.7 $137.1 Cap 65.0 (mils) Ex Funding $62.5 0.0 2009 23.1 $51.4 12.8 $46.7 $59.3 13.8 $69.9 $48.7$40.2
Slide 10: Financial Review: Debt Covenants
Financial Q1 Current Fixed Debt 10 2008 toCharge EBITDA Ratio Q2 Review Debt 2008 Coverage 1.25 Covenants 1.08 Q3 1.18 2008 0.96 1.23 1.770.82 Q41.20 1.72 2008 1.13 >=1.15 1.65 Financial <=2.25 1.34 >=1.20 Covenants
Slide 11: Financial Review: Debt
Financial Debt What 1. 2. 3. 11 Covenant Current Need Status aretothe Review credit develop risk issues? market in alternatives 2009conditions led to “going to address preclude concern” debt issuing obligations opinion new bonds to refinance debt obligations
Slide 12: Same Store Operations Review: Revenue
Same30.5 Q4:2008 New Used F&I Fixed Other Total (amounts 12 Retail $Retail Store 64.1 Operations 1,247.9 Q4:2007% 44.4(31.1%) in132.7(51.7%) $Revenue and 270.4 thousands) 646.7 $Operations 1,738.4(28.2%) 236.1 316.6(14.6%) $DIFF –996.7(35.1%) 155.0 Q4 248.2(4.8%) 394.8 FY and Review 172.6(10.2%) 200
Slide 13: Same Store Operations Review: New Vehicle and Fixed Operations
Same Fixed Luxury Non Detroit Oct Nov Dec Q1 Customer (4.8%) (5.6%) (2.1%) (10.0%) (7.0%) (4.0%) (1.0%) Standard Total Warranty *Adjusted menus 13 Projection -1.1% -5.0% Luxury +0.1% Store Operations 3Imports grids -8.5% Pay for and Imports selling Flat Total progression* and Operations +1.7% Revenu
Slide 14: Same Store Operations Review: Used Vehicles
Same Used Q4 Retail Wholesale YOY Days % Inventory 14 over Oct Vehicle Supply %Store Volume GPU 30 Nov better/—worse clean days Loss($2,548,557)($1,007,903)($846,263)($694,391)($145,141) and $1,351 Dec 32.5 –13,753 Q4, old up Operations Prelim 27.2 in $1,357 37.3% preliminary the 4,186 22.3 -8.5% -2
Slide 15: Same Store Operations Review: Sonic vs Local Market
Same Sonic Oct South Total 398 * 15 Nov (208) Sonic* Store vs. East Bps Dec Local (286) Texas and difference JanMarket Operations 319 Central Feb686 between – California Q4Review / Jan-Feb Sonic and 09 the local market competition.
Slide 16: Same Store Operations Review: Regional and Brand
Same Region Regional: 29% Texas BMW, 27% California BMW 7% Florida Toyota Cadillac Brand: Luxury New CPO Customer Non-Luxury E Thanks 16Commerce ofof volume Store total and Chevrolet and and total import toremains pay all Mercedes revenues Mercedes and Brand new revenue import decline Associates!! u
Slide 17: Summary: 2009 Outlook
Summary Ensure Fixed Traffic Inventory 2009 No Continued Key 9.2 New Parts We 17 changes -10.5m focused are Assumptions margins Outlook and Operations management liquidity building Service /Challenging SAAR Cost on indifficult, the controlling for control /flat overall environment Used the / to euse
Slide 18: Non-GAAP Reconciliations
Non-GAAP (amounts 12/31/2008 SG&A Impairment Operating Hurricane Adjustments: Lease Property Goodwill Franchise Total Income 18 Adjustments exit expenses / impairment (loss) in impairment agreement and income 12/31/2007 charges Reconciliations thousands) hail other from asas 3,900 789,944 793,844 re
Slide 19: Non-GAAP Reconciliations
Non-GAAP (amounts 12/31/2008 Hurricane Valuation Lease Adjustments: Property Goodwill Franchise Favorable Total Income 19 Adjustments(139,891) Adjustments exit /taxes impairment (loss) in impairment allowance agreement and lease 12/31/2007 Reconciliations thousands) ashail other from asset Adjusted
Slide 20: Non-GAAP Reconciliations
Non-GAAP (amounts 12/31/2008 Discontinued Loss Hurricane Adjustments: Lease Property Goodwill Franchise Favorable Valuation Total Net 20 income from Adjustments exitimpairment in impairment allowance agreement and lease discontinued 12/31/2007 /Reconciliations thousands) (loss) Operations hail other
Slide 21: Non-GAAP Reconciliations
Non-GAAP (amounts 12/31/2008 Hurricane Adjustments: Lease Property Goodwill Franchise Favorable Valuation Total Earnings 21 Adjustments exitimpairment /in impairment allowance agreement and lease (loss) 12/31/2007 Reconciliations thousands) hail other asset per 16.31 0.73 17.04 related accruals shar
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