Sonic Automotive, Inc. · NYSE:SAH

Sonic Automotive — Q4 2024 Earnings Presentation

32 slides from Sonic Automotive's earnings presentation, Feb 12, 2025

  1. Slide 1: Investor Presentation | Fourth Quarter 2024

    SONIC AUTOMOTIVE Investor Presentation | Fourth Quarter 2024 Updated February 12, 2025

  2. Slide 2: Forward-Looking Statements

    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 regarding our bu

  3. Slide 3: Sonic Automotive Company Overview

    Sonic Automotive Company Overview NYSE: SAH – A Fortune 300 Diversified Total Revenues and Earnings Per Share Automotive Retailer $14 $9.61 $8.46 $12 • Our Franchised Dealerships Segment is a full-service $6.81 $5.60 $10 automotive retail business with a diversified brand $3.85 $8.06 $8 $6.18 $1.63

  4. Slide 4: Diversified Portfolio And Business Lines

    Diversified Portfolio And Business Lines Geographic Distribution Brand Distribution Business Line Mix New Vehicle % of % of NV 2% All Others 5% Total Total Used Vehicle (Including Wholesale) MD 2% Category Revenue Franchised Brand Revenue Parts, Service & Collision Repair ("Fixed Operations") VA 2%

  5. Slide 5: Strategic Focus – Franchised Dealerships Segment

    Strategic Focus – Franchised Dealerships Segment Total Revenues, Segment Income*, and Adjusted EBITDA* Franchised Dealerships Strategy $11.9 $11.5 $11.8 • Focus on opportunities to offset $10.1 $839 normalizing new vehicle gross profit $8.3 $692 $675 margins through growth in parts and $526 service

  6. Slide 6: Strategic Focus – Franchised Dealerships Segment (continued)

    Strategic Focus – Franchised Dealerships Segment (continued) Retail New Vehicle Unit Sales Volume, Revenue, and Gross Profit Per Unit $6,591 Retail New And Used Vehicles $4,836 • The rate of new vehicle GPU decline has $4,595 $4,289 moderated, and we believe the "new normal" will $3,382 $3,238 remai

  7. Slide 7: Strategic Focus – Franchised Dealerships Segment (continued)

    Strategic Focus – Franchised Dealerships Segment (continued) Fixed Operations Gross Profit and Gross Margin % Fixed Operations And F&I • Increased technician headcount by 335 technicians in FY 2024, projected to generate approximately $100M in 49.8% 50.2% 49.5% 49.7% 50.4% 50.0% 50.8% annualized fix

  8. Slide 8: Strategic Focus – Franchised Dealerships Segment (continued)

    Strategic Focus – Franchised Dealerships Segment (continued) Hybrid vs. Electric Vehicle Trends Hybrid Vehicle vs. EV Industry Sales Volume Penetration 20% 18.0% • Industry sales volume penetration rates for combined hybrid electric 16% vehicles (HEV) and plug-in hybrid electric vehicles (PHEV) are

  9. Slide 9: Strategic Focus – EchoPark Segment

    Strategic Focus – EchoPark Segment EchoPark Strategy $40 EchoPark Segment Adjusted EBITDA* (Millions) • Returned to positive segment adjusted $4.9 $10 $16.7 $32.5 EBITDA* in FY 2024 after 3 years of used $(6.3) vehicle industry headwinds $(20) $(5.7) $(27.0) $(70.1) $(49.5) $(4.9) $(2.8) $(0.7) $(19

  10. Slide 10: Strategic Focus – EchoPark Segment (continued)

    Strategic Focus – EchoPark Segment (continued) EchoPark Segment Adjusted EBITDA* and Total GPU (Used GPU + F&I GPU) EchoPark Strategy $2,657 $3,029 $2,461 $2,974 $2,013 $1,762 $2,183 $27.6 • Focus on maintaining positive retail used vehicle GPU $10.7 $4.2 throughout FY 2025 due to faster inventory t

  11. Slide 11: Strategic Focus – Powersports Segment

    Strategic Focus – Powersports Segment Acquisition Multiple Powersports Strategy Dealership Type Low High • Standardize operating playbooks and Luxury 6.0x 10.0x processes in existing stores to facilitate Other Luxury 3.5x 5.0x future organic and acquisition growth Import 3.0x 8.0x • Complete roll ou

  12. Slide 12: Strategic Focus – Consolidated Company

    Strategic Focus – Consolidated Company Strong Balance Sheet and Liquidity Consolidated Company Strategy $1,000 $862 $846 $794 • Expect to maintain strong balance sheet and free $800 $ In Millions $703 cash flows $600 $526 $501 $399 $374 $384 • Balanced capital allocation strategy prioritizes $400 $2

  13. Slide 13: Sonic Automotive FY 2025 Outlook

    Sonic Automotive FY 2025 Outlook Franchised Dealerships Segment • Expect low single digit percentage growth in revenues and gross profit, driven by: • Continued normalization of new vehicle GPU in the $2,500 to $3,000 per unit range, depending on seasonality, brand mix, and EV margin volatility • Lo

  14. Slide 14: Appendix: Financial Tables & Non-GAAP Reconciliations

    Appendix: Financial Tables & Non-GAAP Reconciliations

  15. Slide 15: Definition of Non-GAAP Financial Measures

    Definition of Non-GAAP Financial Measures To supplement the Company’s financial data presented in Adjusted Net Income is defined as GAAP net income, excluding certain non-operating charges accordance with accounting principles generally accepted in the and/or benefits that may affect the comparabili

  16. Slide 16: GAAP Income Statement – Annual Trend – Consolidated

    GAAP Income Statement – Annual Trend – Consolidated FY 2024 Better / (Worse) % Change (In millions, except unit, per unit, and per share data) FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 Year-Over-Year Revenues: Retail new vehicles $ 6,507.5 $ 6,304.6 $ 5,622.6 $ 4,993.4 $ 4,224.4 3% Fleet new vehicles

  17. Slide 17: Non-GAAP Reconciliation – Annual Trend – Consolidated

    Non-GAAP Reconciliation – Annual Trend – Consolidated (In millions, except per share data) FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 Reported net income (loss) from continuing operations $ 216.0 $ 178.2 $ 88.5 $ 348.9 $ (50.7) Adjustments: Impairment charges $ 3.9 $ 79.3 $ 320.4 $ - $ 269.2 Acquisitio

  18. Slide 18: GAAP Income Statement – Quarterly Trend – Consolidated

    GAAP Income Statement – Quarterly Trend – Consolidated Q4 2024 Better / (Worse) % Change (In millions, except unit, per unit, and per share data) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Sequential Year-Over-Year Revenues: Retail new vehicles $ 1,932.3 $ 1,566.8 $ 1,552.6 $ 1,455.8 $ 1,680.2 23% 15%

  19. Slide 19: Non-GAAP Reconciliation – Quarterly Trend – Consolidated

    Non-GAAP Reconciliation – Quarterly Trend – Consolidated Q4 2024 Better / (Worse) % Change (In millions, except per share data) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Sequential Year-Over-Year Reported net income (loss) $ 58.6 $ 74.2 $ 41.2 $ 42.0 $ 38.7 (21%) 51% Adjustments: Impairment charges $

  20. Slide 20: GAAP Income Statement – Annual Trend – Franchised Dealerships Segment

    GAAP Income Statement – Annual Trend – Franchised Dealerships Segment FY 2024 Better / (Worse) % Change (In millions, except unit and per unit data) FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 Year-Over-Year Revenues: Retail new vehicles $ 6,425.5 $ 6,215.0 $ 5,581.6 $ 4,984.4 $ 4,224.4 3% Fleet new veh

  21. Slide 21: Non-GAAP Reconciliation – Annual Trend – Franchised Dealerships Segment

    Non-GAAP Reconciliation – Annual Trend – Franchised Dealerships Segment (In millions) FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 Reported income (loss) before taxes $ 256.4 $ 447.0 $ 526.1 $ 530.3 $ (38.8) Impairment charges 1.2 1.0 115.5 - 270.0 Segment income (loss) $ 257.6 $ 448.0 $ 641.6 $ 530.3 $

  22. Slide 22: GAAP Income Statement – Quarterly Trend – Franchised Dealerships Segment

    GAAP Income Statement – Quarterly Trend – Franchised Dealerships Segment Q4 2024 Better / (Worse) % Change (In millions, except unit and per unit data) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Sequential Year-Over-Year Revenues: Retail new vehicles $ 1,914.8 $ 1,539.9 $ 1,530.9 $ 1,439.9 $ 1,664.1 24

  23. Slide 23: Non-GAAP Reconciliation – Quarterly Trend – Franchised Dealerships Segment

    Non-GAAP Reconciliation – Quarterly Trend – Franchised Dealerships Segment Q4 2024 Better / (Worse) % Change (In millions) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Sequential Year-Over-Year Reported income (loss) before taxes $ 89.4 $ 51.6 $ 52.7 $ 62.7 $ 89.8 73% 0% Impairment charges 0.2 - - 1.0 1.

  24. Slide 24: GAAP Income Statement – Annual Trend – EchoPark Segment

    GAAP Income Statement – Annual Trend – EchoPark Segment FY 2024 Better / (Worse) % Change (In millions, except unit, per unit, and per share data) FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 Year-Over-Year Revenues: Total new vehicles $ - $ 1.0 $ 9.2 $ 9.0 $ - (100%) Used vehicles 1,838.0 2,143.8 2,116.

  25. Slide 25: Non-GAAP Reconciliation – Annual Trend – EchoPark Segment

    Non-GAAP Reconciliation – Annual Trend – EchoPark Segment (In millions) FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 Reported income (loss) before taxes $ 0.8 $ (210.8) $ (338.8) $ (72.1) $ 4.0 Impairment charges 2.7 78.3 204.9 0.1 - Segment income (loss) $ 3.5 $ (132.5) $ (133.9) $ (72.0) $ 4.0 Acquisit

  26. Slide 26: GAAP Income Statement – Quarterly Trend – EchoPark Segment

    GAAP Income Statement – Quarterly Trend – EchoPark Segment Q4 2024 Better / (Worse) % Change (In millions, except unit and per unit data) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Sequential Year-Over-Year Revenues: Used vehicles $ 436.0 $ 470.3 $ 448.9 $ 482.9 $ 492.5 (7%) (11%) Wholesale vehicles 21

  27. Slide 27: Non-GAAP Reconciliation – Quarterly Trend – EchoPark Segment

    Non-GAAP Reconciliation – Quarterly Trend – EchoPark Segment Q4 2024 Better / (Worse) % Change (In millions) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Sequential Year-Over-Year Reported income (loss) before taxes $ (3.9) $ 5.2 $ 2.5 $ (2.9) $ (31.6) (175%) 88% Impairment charges 1.3 - 1.4 - 15.7 NM NM

  28. Slide 28: GAAP Income Statement – Annual Trend – Powersports Segment

    GAAP Income Statement – Annual Trend – Powersports Segment FY 2024 Better / (Worse) % Change (In millions, except unit and per unit data) FY 2024 FY 2023 FY 2022 Year-Over-Year Revenues: Retail new vehicles $ 82.0 $ 88.6 $ 31.8 (8%) Used vehicles 22.3 19.5 7.1 14% Wholesale vehicles 2.3 2.6 0.3 (6%)

  29. Slide 29: Non-GAAP Reconciliation – Annual Trend – Powersports Segment

    Non-GAAP Reconciliation – Annual Trend – Powersports Segment (In millions) FY 2024 FY 2023 FY 2022 Reported income (loss) before taxes $ (1.1) $ 5.7 $ 2.7 Impairment charges - - - Segment income (loss) $ (1.1) $ 5.7 $ 2.7 Long-term compensation charges 0.5 - - Adjusted segment income (loss) $ (0.6)

  30. Slide 30: GAAP Income Statement – Quarterly Trend – Powersports Segment

    GAAP Income Statement – Quarterly Trend – Powersports Segment Q4 2024 Better / (Worse) % Change (In millions, except unit and per unit data) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Sequential Year-Over-Year Revenues: Retail new vehicles $ 17.5 $ 26.9 $ 21.7 $ 15.9 $ 16.1 (35%) 9% Used vehicles 4.7 9

  31. Slide 31: Non-GAAP Reconciliation – Quarterly Trend – Powersports Segment

    Non-GAAP Reconciliation – Quarterly Trend – Powersports Segment Q4 2024 Better / (Worse) % Change (In millions) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Sequential Year-Over-Year Reported income (loss) before taxes $ (3.4) $ 4.0 $ 0.5 $ (2.3) $ (3.5) (184%) 3% Impairment charges - - - - - NM NM Segme

  32. Slide 32: 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

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