Slide 1: Q2 Earnings Review
1 Q2 Earnings Review July 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 Q2 2011
3 Sonic Automotive Q2 2011 o Quarter in Review o Financial Results o Operations Recap o Summary and Outlook
Slide 4: Overall Results
4 Overall Results Grow the base business Revenues up 14% New vehicle revenue up 16.0%; Volume exceeds industry growth Used revenue up 15% F&I revenue up 22% Fixed Operations up 6.0% SG&A to Gross declined to 77.6% Income from continuing operations up 59.1% * Q2 2011 diluted EPS from continuing opera
Slide 5: Second Quarter Results
(dollars in millions, except per share) B / (W) than Q2 2010 Q2 2011 $ % Revenue 1,968 $ 246 $ 14% Gross Profit 310 27 10% Operating Profit 59 11 23% Non-Floor Plan Interest 18 2 10% Continuing Operations -Profit After Tax 22 $ 13 $ (1) 131% -Diluted EPS 0.37 $ 0.19 $ (1) 106% Discops EPS (0.02) $ -
Slide 6: Slide 6
Slide 7: Capital Spending
Capital Spending 7 Actual 1st Half 2011 Expected 2nd Half 2011 Expected FY 2011 Facility Improvement 26.6 $ 7.0 $ 33.6 $ Real Estate Acquisitions 75.2 5.0 80.2 Less: Mortgage Funding (54.0) (15.0) (69.0) Net Cash Used - Facility Related 47.8 $ (3.0) $ 44.8 $ IT Capital Spending 3.9 5.8 9.7 Maintenan
Slide 8: Credit Facility
Credit Facility • Extended term: August 15, 2016 maturity (was August 2012) • Increased size: Revolving Credit Facility - $175.0 million ($25.0 million increase) New Vehicle Floorplan Facility - $500.0 million ($179.0 million increase) Used Vehicle Floorplan Facility - $80.0 million ($30.0 million i
Slide 9: New Retail Vehicles
New Retail Vehicles Q2 Q2 (dollars in thousands, except GPU) 2011 2010 B / (W) New Retail Volume 28,367 (1) 24,647 15.1% New Gross Margin 6.8% 6.9% (10) bps New GPU 2,351 $ 2,364 $ (0.6%) New Gross Profit 66,680 $ 58,273 $ F&I Gross Profit - New 34,774 $ 27,913 $ Industry SAAR (millions) 12.1 11.3 7
Slide 10: Used Retail Vehicles
10 Used Retail Vehicles Q2 Q2 (dollars in thousands, except GPU) 2011 2010 B / (W) % Used Retail Volume 27,141 24,382 11.3% CPO Volume 7,843 8,342 (6.0%) Used GPU 1,458 $ 1,542 $ (5.4%) Used Gross Profit 39,560 $ 37,586 $ 5.3% Used to New Ratio 0.96 0.99 F&I Gross Profit - Used 21,007 $ 17,701 $ 18.
Slide 11: Used Volume – Tracking per Store
Used Volume – Tracking 100 per Store # Stores Averaging 100+ per Month: 9 7 17 21 25 11
Slide 12: Fixed Operations
Fixed Operations YOY Sales Increase of $15.7M, or 5.5% Gross Margin was 49.3% and Fixed Abs was 88% in Q2 2011 12 $141.8 $140.6 $141.1 $143.9 $147.8 $136 $138 $140 $142 $144 $146 $148 $150 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Gross $283.8 $283.7 $285.4 $291.8 $299.5 $275 $280 $285 $290 $295 $300
Slide 13: Summary
13 Summary Base business continues to grow New vehicle market share continues to increase Used retail vehicle volume continues to grow at double-digit rate F&I benefiting from growth in new and used volume Leveraging SG&A as gross profit grows Automotive retail industry continues its steady recovery