Sonic Automotive, Inc. · NYSE:SAH
Sonic Automotive — Q1 2008 Earnings Presentation
18 slides from Sonic Automotive's earnings presentation, Apr 29, 2008
Slide 1: Exhibit 99.2
Exhibit 99.2
Slide 2: Cautionary Notice Regarding Forward-Looking Statements
Cautionary Notice Regarding Forward-Looking Statements • This presentation contains statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. • These forward - looking statements are
Slide 3: First Quarter 2008 Earnings Review
First Quarter 2008 Earnings Review April 29, 2008
Slide 4: Discussion Topics
Discussion Topics •Building for the long term Update on strategic initiatives •Quarter review •Questions •Closing comments
Slide 5: Take the High Road
Teke the High Roal 77
Slide 6: Slide 6
Slide 7: Slide 7
Slide 8: Building for the Long Term: Used Vehicle Strategy
Trade Desk Maximize Margin Volume Growth Increased Profitability Right inventory, Right Location, Right Price National Inventory Optimization Building for the Long Term Used Vehicle Strategy Trade Desk Phase II – In Process Phase III Web-Tail Maximize Margin Volume Growth Increased Profitability On-
Slide 9: The Quarter in Review
Building for the Long Term The Quarter in Review • Business performed well in tough environment • On track with internal expectations – reaffirming full year guidance • Total revenue up – New vehicle environment challenging – Used volume continues to be a strength • Sticking with our strategy – Inve
Slide 10: Financial Performance
Financial Performance 1.0% 2.5% (9.6%) (19.0%) (28.9%) (10.3%) (20.5%) 30bps 30bps Better/ (Worse) Revenue $1,901 $1,883 $18 Gross Profit $306 $298 $7 – Margin 16.1% 15.8% Operating Income – Amount $55 $61 ($6) – Margin 2.9% 3.2% Net Income – Continuing Operations $18.0 $22.3 ($4.2) – Total Operatio
Slide 11: Same Store Revenue Growth – Q1 2008
Same Store Revenue Growth – Q1 2008 • Challenging new vehicle environment • Used retail volume, F&I and customer pay expanding (8.2%) 11.5% 0.7% 5.9% (2.9%) (23.5%) (4.0%) New Used Fixed Operations F&I Sub Total Wholesale Total
Slide 12: New, Used, & CPO Retail Unit Sales: Same Store vs. Industry
-12.0% -7.0% -2.0% 3.0% 8.0% 13.0% 18.0% 23.0% Sonic -8.7% 10.2% 20.5% Industry -10.9% 2.1% 0.8% Q1 New** Q1 Used* CPO Q1 New, Used, & CPO Retail Unit Sales Same Store vs. Industry *National Franchised Dealers Focus on used vehicles is paying off *National franchise dealers **Excluding fleet – with
Slide 13: F&I – Same Store
$984 $1,027 $1,067 $1,024 $930 $959 $986 $957 1,000 1,040 1,080 Q3 '07 Q4 '07 Q1 '08 Last 3 Qtr 2007/2008 2006/2007 F&I – Same Store
Slide 14: SG&A Expenses as % of Gross Profit
8.5% 69.1% 70.9% 8.4% Q1 2008 Q1 2007 All Other SG&A Rent SG&A Expenses as % of Gross Profit 77.6% 79.3% bps
Slide 15: Inventory Management
Inventory Management Days Supply Mar-08 Mar 08 Industry New Vehicles Domestic (excluding Cadillac) 63.1 73.1 Luxury ( including Cadillac) 66.0 53.5 Import 58.6 53.2 Overall 63.1 62.6 Used Vehicles 35.7
Slide 16: Capitalization
Capitalization 53.7% 53.7% 57.6% 60.6% 54.0% 46.0% 39.4% 39.6% 43.7% 41.4% Act Q1 2008 Pro Forma Q1 Equity Debt Mortgages 46.3% 42.4% 46.3% Debt to Cap With Mortgages 2.8% 2.6% 4.9%
Slide 17: Summary
Summary • Reaffirming full year guidance – we are on the right track • In a difficult economic environment, Sonic expanded revenue in Used, F&I and Fixed Operations • Sticking to our strategy – Investing in our people – Digital marketing – Technology – Phase II of our used vehicle process • Q2 Outlo
Slide 18: Slide 18