Sonic Automotive, Inc. · NYSE:SAH
Sonic Automotive — Q1 2012 Earnings Presentation
13 slides from Sonic Automotive's earnings presentation, Apr 23, 2012
Slide 1: Q1 2012 Earnings Review
Sonic Automotive, Inc. 1 Q1 2012 Earnings Review April 23, 2012 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 Q1 2012
Sonic Automotive, Inc. 3 Sonic Automotive Q1 2012 o Quarter in Review o Financial Results o Operations Recap o Summary and Outlook
Slide 4: Overall Results
Sonic Automotive, Inc. 4 Overall Results Record Revenue Growth – up 9.3% New retail vehicle revenue up 12.1% - volume up 11.2% - exceeds industry retail volume growth Pre-owned revenue up 9.0% F&I revenue up 20.7% Fixed Operations revenue up 5.1% SG&A to gross declined to 79.4% Income from continuin
Slide 5: Q1 2012 Results B/(W) than Q1 2011
Sonic Automotive, Inc. Q1 2012 Results 5 B/(W) than Q1 2011 (amounts in millions, except per share data) Q1 2012 $ % Revenue $ 1,988 $ 170 9% Gross Profit $ 312 $ 25 9% Operating Profit $ 53 $ 10% Continuing Ops: Profit (after tax) $ 19 $ 4 24% Diluted EPS $ 0.33 $ 0.27 22%
Slide 6: SG&A to Gross bps Improvement
Sonic Automotive, Inc. SG&A to Gross 30 bps Improvement Q1 2011 Q1 2012 79.7% 79.4%
Slide 7: Capital Spending
Sonic Automotive, Inc. Capital Spending 7 (amounts in millions) YTD Q1 2012 Estimated 2012 Real Estate Acquisitions $ 0.0 $ 14.5 All Other Cap Ex 12.0 118.9 Subtotal $ 12.0 $ 133.4 Less: Mortgage Funding (10.7) (33.5) Total Cash Used – Cap Ex $ 1.3 $ 99.9
Slide 8: Debt Covenants
8 Debt Covenants Compliant with all Covenants Covenant Actual Q1 2012 Sonic Automotive, Inc. Liquidity Ratio >= 1.05 1.16 Fixed Charge Coverage Ratio >= 1.20 1.64 Total Lease Adjusted Leverage Ratio <= 5.50 3.95
Slide 9: New Vehicles
Sonic Automotive, Inc. New Vehicles Includes Fleet (1) (1) Source: JD Power 11.2% 10.4% 12.4% Sonic - Retail Industry - Retail SAAR Q1 2012 Q1 2011 B/(W) 9 Retail Revenue $1.0 billion 12.1% $909 million Retail Volume Selling Price Gross Margin % GPU Retail Gross Profit 29,685 26,703 11.2% $ 34,311 $
Slide 10: Pre-Owned Retail Vehicles
Sonic Automotive, Inc. Pre-Owned Retail Vehicles Q1 2012 Q1 2011 B/(W) 10 * - Includes: pre-owned vehicle + reconditioning + F&I gross Continue to make progress toward our goal of 100 per store per month Used Retail Sales Per Store 75 77 74 80 82 90 Jan Feb Mar 2011 2012 Retail Volume 26,547 24,895
Slide 11: Fixed Operations
Sonic Automotive, Inc. 11 B/(W) than Q1 2011 FY YOY Gross Profit Change Breakdown: Fixed Operations • Customer Pay Up 8.1% • Whsl. Parts Up 7.3% • Internal & Sublet Up 10.2% • Warranty Down 14.2% (amounts in millions) Q1 2012 $ % Revenue $ 302 $ 15 5.1% Gross Profit $ 147 $ 6 3.9%
Slide 12: Summary and Outlook
Sonic Automotive, Inc. 12 Summary and Outlook Continue to grow organically and improve our base business Automotive retail industry steadily increased in Q1 Expect new vehicle inventories to normalize in Q2 Investment in technology and training will continue Confirm 2012 continuing operations dilute
Slide 13: 13 Sonic Automotive, Inc.
13 Sonic Automotive, Inc.