Sonic Automotive, Inc. one of the nation’s largest automotive retailers, today reported adjusted net income from continuing operations for the second quarter of 2015 of US$23.4 million, or US$0.46 per diluted share. Included in these adjusted amounts are pre-tax expenses of US$4.1 million, or US$0.05 per diluted share, related to EchoPark® operations.
Adjusted net income from continuing operations for the second quarter of 2014 was US$23.5 million, or US$0.44 per diluted share. Included in these adjusted amounts are pre-tax expenses of US$3.2 million, or US$0.04 per diluted share, related to EchoPark® operations.
On a GAAP basis, net income from continuing operations and related diluted earnings per share for the second quarter of 2015 were US$15.1 million and US$0.30 per share, respectively, and net income from continuing operations and related diluted earnings per share for the second quarter of 2014 were US$27.1 million and US$0.51 per share, respectively. See the accompanying tables for a reconciliation of the adjusted balances to GAAP basis amounts and further details of the quarterly adjustments.
B. Scott Smith, Sonic’s President, noted, “I’m proud of our operations team for achieving the lofty goal of retailing 100 pre-owned vehicles per store per month. We have had quarters in the past when we approached achieving this metric and several months where we surpassed this metric, but it had never been achieved on a quarterly basis. Generating this type of retail activity fuels our fixed operations and F&I areas where we are most profitable.”
“We also worked to build our fixed operations business in the quarter. In addition to the benefits we experienced through the reconditioning work performed to achieve the sale of 100 pre-owned vehicles per store per month, we were able to grow overall same store fixed operations gross profit US$13.1 million, or 8.5%, compared to the prior year quarter. Fixed operations growth was achieved in our customer pay, warranty and internal categories. This type of internal growth strategy is central to our One Sonic-One Experience (OSOE) initiative which is intended to grow the top-line revenue categories, generate retail activity, and realize benefits over multiple gross profit streams.”
Jeff Dyke, Sonic’s EVP of Operations, stated, “We had another very busy quarter at Sonic Automotive. From a franchise store perspective, we executed our playbook and delivered another solid operating performance allowing our team to leverage this performance while we build on our OSOE strategy and our EchoPark® business model. I am very excited about our pre-owned volume and the continued focus and execution from our team as they achieved 100 units per store per month for the quarter. Our focus on our fixed operations business, and in particular our customer pay business, is beginning to pay off and the result showed in the quarter. Warranty business was also robust.” – PR News Wire