Sonic Automotive, Inc. · NYSE:SAH
Sonic Automotive — Q1 2011 Earnings Presentation
15 slides from Sonic Automotive's earnings presentation, Apr 26, 2011
Slide 1: Q1 Earnings Review
1 Q1 Earnings Review April 26, 2011 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 Q1 2011 Quarter in Review
3 Sonic Automotive Q1 2011 Quarter in Review Financial Results Operations Recap Summary and Outlook
Slide 4: Overall Results
4 Overall Results Grow the base business Operating Playbooks key to organic growth: Revenues up 19.2% New vehicle revenue up 26.0%, exceeding industry growth Used revenue up 15.1% F&I revenue up 21.9% Fixed Operations up 6.0% Own our dealerships: Purchased 5 additional properties Owned properties up
Slide 5: Quarterly Results
Quarterly Results (amounts in millions, except per share) Better / (Worse) Q12011 Q1 2010 $ % Revenue s 1,839.4 $ 1,543.7 $ 295.7 19.2% Gross Profit 291.2 265.9 253 95% SG&A (232.5) (220.7) (11.9) (5.4%) % of Gross 719.9% 83.0% Operating Profit 48.6 36.8 11.9 % of Revenue 2.6% 24% Floorplan Interest
Slide 6: SG&A - Q1 2011 bps Improvement
6 SG&A - Q1 2011 310 bps Improvement (dollars in thousands)
Slide 7: Capital Spending
Capital Spending 7 (amounts in millions)
Slide 8: Public Debt Maturities
Public Debt Maturities 8.625% Notes 5.0% Convertible Notes 9.0% Notes (due 2018) (amounts in millions)
Slide 9: Debt Covenants
Debt Covenants Actual Memo 2012 Covenant Ql 2011 Covenant Liquidity Ratio >=1.05 1.15 Fixed Charge Coverage Ratio >=1.15 1.45 Total Senior Secured Debt to EBITDA Ratio <=2.25 1.50 Compliant with all Covenants
Slide 10: New Retail Vehicles
New Retail Vehicles 10 Gross margin relatively stable sequentially Overall new vehicle gross profit continues to grow Increased volume driving F&I gross profit Up 18%
Slide 11: Japanese Brands Outlook
Japanese Brands Outlook April Vehicle inventories in good shape - Japanese brands' days supply was 45 days at 3/31/11 Expect no parts inventory issues Margins are increasing May Allocations will slow down; Inventory will get tighter Continue to increase used vehicle inventory Will impact new vehicle
Slide 12: Used Retail Vehicles All-Time Record
12 Used Retail Vehicles All- Time Record
Slide 13: Fixed Operations
Fixed Operations YOY Sales Increase of $16.6M Gross Margin % was 49.3% at Q1 2011 13 All- Time Record All- Time Record
Slide 14: Summary
14 Summary Base business continues to grow New vehicle market share continues to increase Used retail vehicle volume and gross continue to grow at double-digit rates Fixed operations gross profit up for Q1 F&I benefitting from growth in new and used volume Used vehicle technology rollout begins in Q
Slide 15: Outlook
15 Outlook Core strategy is producing results Grow the base business Own our land and facilities Use cash flow to reduce debt Automotive retail industry continues its steady recovery Still tracking a 12.5 to 13 million SAAR Maintain continuing operations earnings guidance of $1.18 - $1.28 for FY 201