Sonic Automotive, Inc. · NYSE:SAH
Sonic Automotive — Q2 2024 Earnings Presentation
29 slides from Sonic Automotive's earnings presentation, Aug 5, 2024
Slide 1: Investor Presentation | Second Quarter 2024
Investor Presentation | Second Quarter 2024 Updated August 5, 2024 SONIC AUTOMOTIVE Exhibit 99.2
Slide 2: Forward-Looking Statements
NYSE SAH 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 regardi
Slide 3: Sonic Automotive Company Overview
NYSE SAH Sonic Automotive Company Overview • Our Franchised Dealerships Segment is a full-service automotive retail business with a diversified brand portfolio and multiple strategic growth levers • 106 locations - $11.8 billion in FY 2023 revenues • Our EchoPark Segment Provides high growth potenti
Slide 4: Diversified Portfolio And Business Lines
NYSE SAH Diversified Portfolio And Business Lines 4 Geographic Distribution TX 27% CA 23% CO 9% TN 7% FL 5% AL 5% NC 5% GA 4% ID 3% VA 2% MD 2% NV 2% All Others 6% Total Revenues By State Note: Percentages are percent of total for year ended December 31, 2023. 5% 30% 12% 39% 38% 7% 45% 24% Revenue G
Slide 5: Strategic Focus – Franchised Dealerships Segment
NYSE SAH Strategic Focus – Franchised Dealerships Segment • Focus on opportunities to offset normalizing new vehicle gross profit margins through growth in parts and service (Fixed Operations) and finance and insurance (F&I) gross profit • Actively manage new and used vehicle inventory turnover and
Slide 6: Strategic Focus – Franchised Dealerships Segment (continued)
NYSE SAH Strategic Focus – Franchised Dealerships Segment (continued) 6 111.5 91.9 99.8 99.4 107.3 27.4 26.5 $42.9 $45.9 $49.9 $56.1 $57.9 $57.9 $57.7 $2,078 $2,536 $4,595 $6,591 $4,836 $5,003 $3,579 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q2 2023 Q2 2024 Retail New Vehicle Unit Sales Volume, Revenu
Slide 7: Strategic Focus – Franchised Dealerships Segment (continued)
NYSE SAH Strategic Focus – Franchised Dealerships Segment (continued) 7 Fixed Operations And F&I • Target increasing technician headcount by 300 in FY 2024, projected to generate approximately $100M in incremental annualized fixed operations gross profit (headcount increased by 131 technicians year-
Slide 8: Hybrid vs. Electric Vehicle Trends
NYSE SAH Strategic Focus – Franchised Dealerships Segment (continued) Hybrid vs. Electric Vehicle Trends • Industry sales volume penetration rates for combined hybrid electric vehicles (HEV) and plug-in hybrid electric vehicles (PHEV) are nearly double the penetration rates for battery electric vehi
Slide 9: Strategic Focus – EchoPark Segment
NYSE SAH Strategic Focus – EchoPark Segment • Returned to positive segment adjusted EBITDA* of $7.3 Million in Q1 2024 and $7.2 Million in Q2 2024 after 3 years of industry- driven headwinds • Focus on leveraging retail sales volume momentum and improving used market backdrop to generate positive ad
Slide 10: Strategic Focus – EchoPark Segment (continued)
NYSE SAH Strategic Focus – EchoPark Segment (continued) 10 • Anticipate positive retail used vehicle GPU throughout FY 2024 due to faster inventory turns and stability in wholesale and retail prices and used car supply • Maintain focus on optimizing F&I product offerings and pricing to drive F&I GPU
Slide 11: Powersports Strategy
NYSE SAH 11 • Standardize operating playbooks and processes in existing stores to facilitate future organic and acquisition growth • Roll out modernized inventory management and marketing strategy • Manage expenses and inventory to mitigate effects of weaker seasonal demand in Q1 and Q4 while suppor
Slide 12: Strategic Focus – Consolidated Company
NYSE SAH Strategic Focus – Consolidated Company 12 • Expect to maintain strong balance sheet and free cash flows • Balanced capital allocation strategy prioritizes highest return opportunity • History of returning capital to shareholders via dividend and share repurchases • Quarterly dividend per sh
Slide 13: Sonic Automotive FY 2024 Outlook
NYSE SAH Sonic Automotive FY 2024 Outlook • Expect low single digit percentage growth in revenues and mid single digit percentage decline in gross profit, driven by: • Continued normalization of new vehicle GPU, potentially exiting 2024 in the $3,000 per unit range, with >60 days’ supply by Q4 2024
Slide 14: Appendix: Financial Tables & Non-GAAP Reconciliations
Appendix: Financial Tables & Non-GAAP Reconciliations
Slide 15: GAAP Income Statement – Annual Trend – Consolidated
NYSE SAH GAAP Income Statement – Annual Trend – Consolidated 15 NM = Not MeaningfulNote: Earnings (loss) per share and gross profit per unit metrics are calculated based on actual unrounded amounts. FY 2023 Better / (Worse) % Change (In millions, except unit, per unit, and per share data) FY 2023 FY
Slide 16: Non-GAAP Reconciliation – Annual Trend – Consolidated
NYSE SAH Non-GAAP Reconciliation – Annual Trend – Consolidated 16 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 sheet amounts
Slide 17: GAAP Income Statement – Quarterly Trend – Consolidated
NYSE SAH GAAP Income Statement – Quarterly Trend – Consolidated 17 NM = Not MeaningfulNote: Earnings (loss) per share and gross profit per unit metrics are calculated based on actual unrounded amounts. Q2 2024 Better / (Worse) % Change (In millions, except unit, per unit, and per share data) Q2 2024
Slide 18: Non-GAAP Reconciliation – Quarterly Trend – Consolidated
NYSE SAH Non-GAAP Reconciliation – Quarterly Trend – Consolidated 18 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. Q2 2024 Better / (Worse) % Change (In millions, except per share data) Q
Slide 19: GAAP Income Statement – Annual Trend – Franchised Dealerships Segment
NYSE SAH GAAP Income Statement – Annual Trend – Franchised Dealerships Segment 19 NM = Not MeaningfulNote: Gross profit per unit metrics are calculated based on actual unrounded amounts. FY 2023 Better / (Worse) % Change (In millions, except unit and per unit data) FY 2023 FY 2022 FY 2021 FY 2020 FY
Slide 20: Non-GAAP Reconciliation – Annual Trend – Franchised Dealerships Segment
NYSE SAH Non-GAAP Reconciliation – Annual Trend – Franchised Dealerships Segment 20 Note: SG&A expenses as a percentage of gross profit metrics are calculated based on actual unrounded amounts. (In millions) FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 Reported income (loss) before taxes 447.0$ 526.1$ 53
Slide 21: GAAP Income Statement – Quarterly Trend – Franchised Dealerships Segment
NYSE SAH GAAP Income Statement – Quarterly Trend – Franchised Dealerships Segment 21 NM = Not MeaningfulNote: Gross profit per unit metrics are calculated based on actual unrounded amounts. Q2 2024 Better / (Worse) % Change (In millions, except unit and per unit data) Q2 2024 Q1 2024 Q4 2023 Q3 2023
Slide 22: Non-GAAP Reconciliation – Quarterly Trend – Franchised Dealerships Segment
NYSE SAH Non-GAAP Reconciliation – Quarterly Trend – Franchised Dealerships Segment 22 NM = Not MeaningfulNote: SG&A expenses as a percentage of gross profit metrics are calculated based on actual unrounded amounts. Q2 2024 Better / (Worse) % Change (In millions) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2
Slide 23: GAAP Income Statement – Annual Trend – EchoPark Segment
NYSE SAH GAAP Income Statement – Annual Trend – EchoPark Segment 23 NM = Not MeaningfulNote: Gross profit per unit metrics are calculated based on actual unrounded amounts. FY 2023 Better / (Worse) % Change (In millions, except unit, per unit, and per share data) FY 2023 FY 2022 FY 2021 FY 2020 FY 2
Slide 24: Non-GAAP Reconciliation – Annual Trend – EchoPark Segment
NYSE SAH Non-GAAP Reconciliation – Annual Trend – EchoPark Segment 24 Note: SG&A expenses as a percentage of gross profit metrics are calculated based on actual unrounded amounts. (In millions) FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 Reported income (loss) before taxes (210.8)$ (338.8)$ (72.1)$ 4.0$
Slide 25: GAAP Income Statement – Quarterly Trend – EchoPark Segment
NYSE SAH GAAP Income Statement – Quarterly Trend – EchoPark Segment 25 NM = Not MeaningfulNote: Gross profit per unit metrics are calculated based on actual unrounded amounts. Q2 2024 Better / (Worse) % Change (In millions, except unit and per unit data) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Seque
Slide 26: Non-GAAP Reconciliation – Quarterly Trend – EchoPark Segment
NYSE SAH Non-GAAP Reconciliation – Quarterly Trend – EchoPark Segment 26 NM = Not MeaningfulNote: SG&A expenses as a percentage of gross profit metrics are calculated based on actual unrounded amounts. Q2 2024 Better / (Worse) % Change (In millions) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Sequential
Slide 27: GAAP Income Statement – Quarterly Trend – Powersports Segment
NYSE SAH GAAP Income Statement – Quarterly Trend – Powersports Segment 27 NM = Not MeaningfulNote: Gross profit per unit metrics are calculated based on actual unrounded amounts. Q2 2024 Better / (Worse) % Change (In millions, except unit and per unit data) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Se
Slide 28: Non-GAAP Reconciliation – Quarterly Trend – Powersports Segment
NYSE SAH Non-GAAP Reconciliation – Quarterly Trend – Powersports Segment 28 NM = Not MeaningfulNote: SG&A expenses as a percentage of gross profit metrics are calculated based on actual unrounded amounts. Q2 2024 Better / (Worse) % Change (In millions) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Sequent
Slide 29: 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