Sonic Automotive, Inc. · NYSE:SAH
Sonic Automotive — Q4 2010 Earnings Presentation
27 slides from Sonic Automotive's earnings presentation, Feb 22, 2011
Slide 1: Q4 Earnings Review
1 Q4 Earnings Review February 22, 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 Q4 2010 Quarter in Review
3 Sonic Automotive Q4 2010 Quarter in Review Financial Results Operations Recap Summary and Outlook
Slide 4: Overall Results - Q4 2010
4 Overall Results - Q4 2010 Portfolio maximization strategy continues to drive results: Operating Playbooks key to organic growth: Revenues up 17.0% New vehicle revenue up 19.9%, exceeding industry growth Used revenue up 18.2% Fixed Operations up 8.0% Balance sheet and liquidity in great shape Real
Slide 5: Quarterly Results (Adjusted)
Quarterly Results (Adjusted*) *See appendix for reconciliation to GAAP amounts 5 * *
Slide 6: Annual Results (Adjusted)
Annual Results (Adjusted*) *See appendix for reconciliation to GAAP amounts 6 * *
Slide 7: Adjusted EBITDA - All Operations
7 Adjusted EBITDA - All Operations (amount s in millions)
Slide 8: SG&A - Q4 2010
8 SG&A - Q4 2010 (1) SG&A amounts adjusted for $1.1M lease exit charge, $2.9M franchise tax assessment and $1.2M swap adjustment. Unadjusted amounts are $12.7M for Other Variable, $25.3M for Rent Expense, $34.9M for Other Fixed, $209.7M for Total SG&A and 81.8% for SG&A % of Gross. 100 bps Improveme
Slide 9: Liquidity
9 Liquidity (1)Excludes other non-public debt principal (primarily mortgages) of $140.8 million and $155.6 million at December 31, 2009 and December 31, 2010, respectively. (1) (1)
Slide 10: Capital Spending
Capital Spending 10 (amounts in millions)
Slide 11: Debt Covenants
11 Debt Covenants Compliant with all Covenants
Slide 12: New Retail Vehicles Revenue and Gross
New Retail Vehicles 12 Revenue $ Gross $ Sequential revenue and gross increases since Q1 2010. (Q4 2010 significantly higher than Q4 2009) (amounts in millions)
Slide 13: New Retail Vehicle Trend
New Retail Vehicle Trend 13 * F&I revenue associated with new vehicle sales ** Q3 2009 included Cash for Clunkers program * **
Slide 14: Used Retail Vehicles Volume
14 Used Retail Vehicles Volume Multiple year double-digit growth in unit volume
Slide 15: Used Retail Vehicle Trend
Used Retail Vehicle Trend 15 * F&I revenue associated with used vehicle retail sales
Slide 16: Fixed Operations Revenue Trend
16 Fixed Operations Revenue Trend 2.8% YOY 4.7% YOY 5.6% YOY 8.0% YOY ($'s in millions)
Slide 17: Fixed Operations Gross Trend
17 Fixed Operations Gross Trend 4.2% YOY 3.2% YOY 2.8% YOY 6.0% YOY ($'s in millions)
Slide 18: Summary
18 Summary Strong operating performance: New vehicle volume easily outpaced industry Used retail vehicle volume and gross continue to grow Fixed operations gross profit up for Q4 and full year F&I continues to benefit from growth in new and used volume 28% total company turnover; 80% customer satisf
Slide 19: 2011 Outlook
2011 Outlook Expect New Vehicle SAAR of 12.5 million Used Vehicle Growth in low double digits Property Purchases to Continue Expect SG&A to gross below 80% Targeting 2011 Diluted EPS from Continuing Operations of $1.18 - $1.28 19
Slide 20: Appendix
APPENDIX
Slide 21: Reconciliation of Non-GAAP Financial Information
21 Reconciliation of Non-GAAP Financial Information
Slide 22: Reconciliation of Non-GAAP Financial Information
22 Reconciliation of Non-GAAP Financial Information
Slide 23: Reconciliation of Non-GAAP Financial Information
23 Reconciliation of Non-GAAP Financial Information
Slide 24: Reconciliation of Non-GAAP Financial Information
24 Reconciliation of Non-GAAP Financial Information
Slide 25: Reconciliation of Non-GAAP Financial Information
25 Reconciliation of Non-GAAP Financial Information
Slide 26: Reconciliation of Non-GAAP Financial Information
26 Reconciliation of Non-GAAP Financial Information
Slide 27: Reconciliation of Non-GAAP Financial Information
27 Reconciliation of Non-GAAP Financial Information