Sonic Automotive Reports EPS of $0.62 for the Second Quarter of 2019; EchoPark Revenues Up 61.9% and Expected to Exceed $1.1 Billion for 2019

CHARLOTTE, N.C.–(BUSINESS WIRE)–Sonic Automotive, Inc. (NYSE: SAH), one of the nation’s largest automotive retailers, today reported financial results for the second quarter of 2019.

  • EchoPark revenues of $291.7 million during the second quarter of 2019, up 61.9% from the second quarter of 2018 and on-track to exceed $1.1 billion in full year 2019 revenues.
  • EchoPark pre-tax profit improved $29.5 million, or 101.6%, to $1.7 million in the second quarter of 2019, compared to a pre-tax loss of $27.8 million in the second quarter of 2018.
  • EchoPark generated positive cash flow (Adjusted EBITDA*) of $4.8 million in the second quarter of 2019, improving by $7.0 million, or 321.7%, from the second quarter of 2018.
  • EchoPark retailed 12,587 units during the second quarter of 2019, up 68.7% from the second quarter of 2018.
  • Total Sonic consolidated GAAP continuing operations earnings per diluted share of $0.62 in the second quarter of 2019, compared to $0.40 in the second quarter of 2018 (excluding the items of interest detailed below, Adjusted earnings per diluted share from continuing operations* for the second quarter of 2018 were $0.35).
  • Total Sonic consolidated all-time quarterly record pre-owned retail unit sales of 41,458 units in the second quarter of 2019.
  • Total Sonic same store Fixed Operations gross increased $10.2 million in the second quarter of 2019, up 6.4% from the second quarter of 2018.
  • Total Sonic consolidated all-time quarterly record F&I gross profit per retail unit of $1,710 in the second quarter of 2019.
  • Total Sonic consolidated all-time quarterly record F&I gross profit of $118.3 million in the second quarter of 2019.
  • SG&A to gross profit ratio of 77.2% in the second quarter of 2019, an improvement of 330 basis points compared to the second quarter of 2018 (excluding the items of interest in the second quarter of 2018 detailed below).*

* Adjusted EBITDA, Adjusted earnings per diluted share from continuing operations and Adjusted SG&A to gross profit ratio are non-GAAP financial measures. The schedules included in this press release reconcile these non-GAAP financial measures to the most directly comparable GAAP financial measures.

Second Quarter 2019 Results

On a GAAP basis, net income from continuing operations for the second quarter of 2019 was $26.8 million, or $0.62 per diluted share. Comparatively, net income from continuing operations for the second quarter of 2018 was $17.1 million, or $0.40 per diluted share.

GAAP results reported for the second quarter of 2018 include the following pre-tax items of interest (there were no such items for the second quarter of 2019):

 

 

 

Income Statement

Line Item

 

(In millions)

Q2 2018

 

 

Gain on franchise disposals

$

38.0

 

SG&A expenses

 

Legal and storm damage charges

$

(3.1)

 

SG&A expenses

 

Long-term compensation charges

$

(23.3)

 

SG&A expenses

(1)

Impairment charges

$

(10.3)

 

Impairment expenses

 

Lease exit adjustments

$

2.6

 

SG&A expenses

 

Note: Amounts in table relate to the Franchised Dealerships Segment unless otherwise noted below.

(1) Relates to EchoPark.

Commentary

David Smith, Sonic’s and EchoPark’s Chief Executive Officer, commented, “We are quite pleased with the results for the quarter. Our franchised stores posted very good results across all revenue lines and our EchoPark operations continued on the growth and profitability path experienced in the prior quarter. We are confident that this momentum will carry into the second half of the year. Even as the new vehicle market started showing signs of weakness, we still had record results in our pre-owned and F&I business lines and grew our fixed operations by 6.4%. This, once again, shows how the dynamic dealer operating model benefits from multiple revenue streams.”

“We are very excited to see the maturity of our current EchoPark locations as illustrated by our most mature market, Denver, Colorado. When we enter a market, we have a clear objective of becoming the market volume leader and achieving that distinction in a profitable manner. It is very exciting to see the results when you focus on the customer and use technology and process to reduce your expenses and simplify the operational model. We believe we will be able to open an additional EchoPark store before the end of 2019 and another shortly thereafter in the first half of 2020. Our current plans include two additional EchoPark store openings in the second half of 2020.”

Jeff Dyke, Sonic’s and EchoPark’s President, commented, “During the second quarter, EchoPark continued to grow consistent with our expectations. The combination of a 68.7% increase in unit volume and an increase of combined front-end and F&I gross per unit of 22.3% significantly contributed to the $13.4 million increase in total gross profit in the second quarter of 2019. This represents an increase of 92.5% over the prior year quarter. At the store operating level, all of our stores improved their performance over the prior year quarter except for one, which was relocated during the current year quarter. Our team continues managing inventory levels, inventory costs and retail pricing which we believe give us a competitive advantage to the overall pre-owned industry. We believe our technology, training and execution will allow us to scale at a level that will continue to help us significantly grow revenue while remaining profitable as we add rooftops in the coming years. We continue to be very excited about our EchoPark business model as we realize and believe that the opportunity in the pre-owned market is massive.”

“Equally as exciting, our franchised stores did an excellent job during the quarter. Collectively, our new car business increased local market share and improved gross per unit on a same store basis by 4.1%. Our franchised stores also really pushed pre-owned volume during the quarter. Same store used vehicle gross profit increased nearly one percent, driven by an increase in pre-owned units sold of 6.1%, offset slightly by a $67 decline in gross per unit. Pre-owned volume also supported higher same store F&I gross profit for the second quarter, which increased 5.9% to $86.7 million. Additionally, the results of our fixed operations business were fantastic. Same store franchise fixed operations gross for the second quarter of 2019 increased 6.8%, or $10.9 million, compared to the prior year quarter. This included an increase of 7.9% in same store customer pay gross profit. Total gross profit from the franchised stores on a same store basis increased $19.7 million in the second quarter, up 6.0% from the prior year quarter. Cost controls were also in play during the quarter for the franchised store group which improved its same store SG&A to gross ratio by 30 basis points, down to 76.3% for the quarter.”

“Consolidated SG&A to gross during the second quarter of 2019 was 77.2%. This compares to an adjusted ratio of 80.5% in the prior year quarter. We continue to look at the business critically to ensure resources are allocated to those functions that are core to our operating strategy.”

Dividend

Sonic’s Board of Directors approved a quarterly dividend of $0.10 per share payable in cash for our stockholders of record on September 13, 2019. The dividend will be payable on October 15, 2019.

Second Quarter 2019 Earnings Conference Call

Senior management will host a conference call today at 10:00 A.M. (Eastern) to discuss the quarter’s results. To access the live broadcast of the call over the Internet go to: www.sonicautomotive.com, then click on “Our Company,” then “Investor Relations,” then the “Earnings Conference Calls” link at the bottom of the page.

Presentation materials for the conference call will be accessible beginning the morning of the conference call on the Company’s website at www.sonicautomotive.com by clicking on the “Investor Relations” tab under “Our Company” and choosing the “Webcasts & Presentations” link at the bottom of the page.

The conference call will also be available live by dialing in 10 minutes prior to the start of the call at:

Domestic: (877) 450-3867

International: (706) 643-0958

Conference ID: 7589142

A conference call replay will be available one hour following the call for seven days and can be accessed by calling:

Domestic: (855) 859-2056

International: (404) 537-3406

Conference ID: 7589142

About Sonic Automotive

Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, N.C., is one of the nation’s largest automotive retailers. Sonic can be reached on the web at www.sonicautomotive.com. More information about EchoPark Automotive can be found at www.echopark.com.

Forward-Looking Statements

Included herein are forward-looking statements. There are many factors that affect management’s views about future events and trends of the Company’s business. These factors involve risks and uncertainties that could cause actual results or trends to differ materially from management’s views, including, without limitation, EchoPark revenue estimates, EchoPark unit sales volume, EchoPark profit estimates, economic conditions in the markets in which we operate, new and used vehicle industry sales volume, the success of our operational strategies, the rate and timing of overall economic recovery or decline, and the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and the Company’s other periodic reports and information filed with the Securities and Exchange Commission (the “SEC”). The Company does not undertake any obligation to update forward-looking information, except as required under federal securities laws and the rules and regulations of the SEC.

Non-GAAP Financial Measures

This press release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as Adjusted EBITDA, Adjusted earnings per diluted share from continuing operations and Adjusted SG&A to gross profit ratio. As required by SEC rules, the Company provides reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures. The Company believes that these non-GAAP financial measures improve the transparency of the Company’s disclosures and provide a meaningful presentation of the Company’s results.

Sonic Automotive, Inc.

Results of Operations (Unaudited)

 

Results of Operations

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2019

 

2018

 

2019

 

2018

 

(Dollars and shares in thousands, except per share amounts)

Revenues:

 

 

 

 

 

 

 

New vehicles

$

1,204,754

 

$

1,238,571

 

$

2,271,088

 

$

2,419,416

Used vehicles

885,627

 

762,572

 

1,705,992

 

1,471,618

Wholesale vehicles

50,039

 

53,748

 

104,810

 

119,148

Total vehicles

2,140,420

 

2,054,891

 

4,081,890

 

4,010,182

Parts, service and collision repair

355,312

 

346,754

 

696,742

 

698,512

Finance, insurance and other, net

118,349

 

104,104

 

224,587

 

197,829

Total revenues

2,614,081

 

2,505,749

 

5,003,219

 

4,906,523

Cost of Sales:

 

 

 

 

 

 

 

New vehicles

(1,148,354)

 

(1,181,303)

 

(2,160,892)

 

(2,305,349)

Used vehicles

(848,898)

 

(725,263)

 

(1,632,256)

 

(1,397,538)

Wholesale vehicles

(50,752)

 

(57,105)

 

(106,789)

 

(126,929)

Total vehicles

(2,048,004)

 

(1,963,671)

 

(3,899,937)

 

(3,829,816)

Parts, service and collision repair

(184,766)

 

(179,703)

 

(362,960)

 

(361,833)

Total cost of sales

(2,232,770)

 

(2,143,374)

 

(4,262,897)

 

(4,191,649)

Gross profit

381,311

 

362,375

 

740,322

 

714,874

Selling, general and administrative expenses

(294,532)

 

(277,462)

 

(541,626)

 

(582,387)

Impairment charges

 

(10,317)

 

(1,952)

 

(13,960)

Depreciation and amortization

(23,806)

 

(23,949)

 

(46,456)

 

(47,692)

Operating income (loss)

62,973

 

50,647

 

150,288

 

70,835

Other income (expense):

 

 

 

 

 

 

 

Interest expense, floor plan

(12,518)

 

(11,945)

 

(25,744)

 

(22,622)

Interest expense, other, net

(13,628)

 

(13,375)

 

(26,481)

 

(26,831)

Other income (expense), net

(5)

 

17

 

95

 

106

Total other income (expense)

(26,151)

 

(25,303)

 

(52,130)

 

(49,347)

Income (loss) from continuing operations before taxes

36,822

 

25,344

 

98,158

 

21,488

Provision for income taxes for continuing operations – benefit (expense)

(10,071)

 

(8,222)

 

(29,058)

 

(6,380)

Income (loss) from continuing operations

26,751

 

17,122

 

69,100

 

15,108

Discontinued operations:

 

 

 

 

 

 

 

Income (loss) from discontinued operations before taxes

(213)

 

(297)

 

(393)

 

(545)

Provision for income taxes for discontinued operations – benefit (expense)

61

 

80

 

114

 

148

Income (loss) from discontinued operations

(152)

 

(217)

 

(279)

 

(397)

Net income (loss)

$

26,599

 

$

16,905

 

$

68,821

 

$

14,711

Basic earnings (loss) per common share:

 

 

 

 

 

 

 

Earnings (loss) per share from continuing operations

$

0.62

 

$

0.40

 

$

1.61

 

$

0.35

Earnings (loss) per share from discontinued operations

 

 

(0.01)

 

(0.01)

Earnings (loss) per common share

$

0.62

 

$

0.40

 

$

1.60

 

$

0.34

Weighted-average common shares outstanding

43,066

 

42,662

 

42,953

 

42,725

Diluted earnings (loss) per common share:

 

 

 

 

 

 

 

Earnings (loss) per share from continuing operations

$

0.62

 

$

0.40

 

$

1.60

 

$

0.35

Earnings (loss) per share from discontinued operations

(0.01)

 

(0.01)

 

 

(0.01)

Earnings (loss) per common share

$

0.61

 

$

0.39

 

$

1.60

 

$

0.34

Weighted-average common shares outstanding

43,230

 

42,920

 

43,060

 

42,948

Dividends declared per common share

$

0.10

 

$

0.06

 

$

0.20

 

$

0.12

New Vehicles

 

Three Months Ended June 30,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands, except unit and per unit data)

Reported new vehicle:

 

 

 

 

 

 

 

Revenue

$

1,204,754

 

$

1,238,571

 

$

(33,817)

 

(2.7)

%

Gross profit

$

56,400

 

$

57,268

 

$

(868)

 

(1.5)

%

Unit sales

28,196

 

30,877

 

(2,681)

 

(8.7)

%

Revenue per unit

$

42,728

 

$

40,113

 

$

2,615

 

6.5

%

Gross profit per unit

$

2,000

 

$

1,855

 

$

145

 

7.8

%

Gross profit as a % of revenue

4.7

 

4.6

%

 

10

 

bps

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands, except unit and per unit data)

Reported new vehicle:

 

 

 

 

 

 

 

Revenue

$

2,271,088

 

$

2,419,416

 

$

(148,328)

 

(6.1)

%

Gross profit

$

110,196

 

$

114,067

 

$

(3,871)

 

(3.4)

%

Unit sales

53,393

 

60,377

 

(6,984)

 

(11.6)

%

Revenue per unit

$

42,535

 

$

40,072

 

$

2,463

 

6.1

%

Gross profit per unit

$

2,064

 

$

1,889

 

$

175

 

9.3

%

Gross profit as a % of revenue

4.9

%

 

4.7

%

 

20

 

bps

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands, except unit and per unit data)

Same store new vehicle:

 

 

 

 

 

 

 

Revenue

$

1,200,352

 

$

1,170,278

 

$

30,074

 

2.6

%

Gross profit

$

55,803

 

$

54,904

 

$

899

 

1.6

%

Unit sales

28,134

 

28,826

 

(692)

 

(2.4)

%

Revenue per unit

$

42,666

 

$

40,598

 

$

2,068

 

5.1

%

Gross profit per unit

$

1,983

 

$

1,905

 

$

78

 

4.1

%

Gross profit as a % of revenue

4.6

%

 

4.7

%

 

(10)

 

bps

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands, except unit and per unit data)

Same store new vehicle:

 

 

 

 

 

 

 

Revenue

$

2,248,029

 

$

2,267,998

 

$

(19,969)

 

(0.9)

%

Gross profit

$

108,763

 

$

109,282

 

$

(519)

 

(0.5)

%

Unit sales

52,829

 

55,736

 

(2,907)

 

(5.2)

%

Revenue per unit

$

42,553

 

$

40,692

 

$

1,861

 

4.6

%

Gross profit per unit

$

2,059

 

$

1,961

 

$

98

 

5.0

%

Gross profit as a % of revenue

4.8

%

 

4.8

%

 

 

bps

 

Used Vehicles

 

Three Months Ended June 30,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands, except unit and per unit data)

Reported used vehicle:

 

 

 

 

 

 

 

Revenue

$

885,627

 

$

762,572

 

$

123,055

 

16.1

%

Gross profit

$

36,729

 

$

37,309

 

$

(580)

 

(1.6)

%

Unit sales

41,458

 

35,779

 

5,679

 

15.9

%

Revenue per unit

$

21,362

 

$

21,313

 

$

49

 

0.2

%

Gross profit per unit

$

886

 

$

1,043

 

$

(157)

 

(15.1)

%

Gross profit as a % of revenue

4.1

%

 

4.9

%

 

(80)

 

bps

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands, except unit and per unit data)

Reported used vehicle:

 

 

 

 

 

 

 

Revenue

$

1,705,992

 

$

1,471,618

 

$

234,374

 

15.9

%

Gross profit

$

73,736

 

$

74,080

 

$

(344)

 

(0.5)

%

Unit sales

79,921

 

69,518

 

10,403

 

15.0

%

Revenue per unit

$

21,346

 

$

21,169

 

$

177

 

0.8

%

Gross profit per unit

$

923

 

$

1,066

 

$

(143)

 

(13.4)

%

Gross profit as a % of revenue

4.3

%

 

5.0

%

 

(70)

 

bps

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands, except unit and per unit data)

Same store used vehicle:

 

 

 

 

 

 

 

Revenue

$

826,666

 

$

728,393

 

$

98,273

 

13.5

%

Gross profit

$

34,540

 

$

34,677

 

$

(137)

 

(0.4)

%

Unit sales

38,517

 

33,930

 

4,587

 

13.5

%

Revenue per unit

$

21,462

 

$

21,468

 

$

(6)

 

%

Gross profit per unit

$

897

 

$

1,022

 

$

(125)

 

(12.2)

%

Gross profit as a % of revenue

4.2

%

 

4.8

%

 

(60)

 

bps

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands, except unit and per unit data)

Same store used vehicle:

 

 

 

 

 

 

 

Revenue

$

1,591,287

 

$

1,394,490

 

$

196,797

 

14.1

%

Gross profit

$

68,263

 

$

67,477

 

$

786

 

1.2

%

Unit sales

74,126

 

65,293

 

8,833

 

13.5

%

Revenue per unit

$

21,467

 

$

21,357

 

$

110

 

0.5

%

Gross profit per unit

$

921

 

$

1,033

 

$

(112)

 

(10.8)

%

Gross profit as a % of revenue

4.3

%

 

4.8

%

 

(50)

 

bps

 

Wholesale Vehicles

 

Three Months Ended June 30,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands, except unit and per unit data)

Reported wholesale vehicle:

 

 

 

 

 

 

 

Revenue

$

50,039

 

$

53,748

 

$

(3,709)

 

(6.9)

%

Gross profit (loss)

$

(713)

 

$

(3,357)

 

$

2,644

 

78.8

%

Unit sales

8,646

 

8,442

 

204

 

2.4

%

Revenue per unit

$

5,788

 

$

6,367

 

$

(579)

 

(9.1)

%

Gross profit (loss) per unit

$

(82)

 

$

(398)

 

$

316

 

79.4

%

Gross profit (loss) as a % of revenue

(1.4)

%

 

(6.2)

%

 

480

 

bps

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands, except unit and per unit data)

Reported wholesale vehicle:

 

 

 

 

 

 

 

Revenue

$

104,810

 

$

119,148

 

$

(14,338)

 

(12.0)

%

Gross profit (loss)

$

(1,979)

 

$

(7,781)

 

$

5,802

 

74.6

%

Unit sales

17,293

 

18,122

 

(829)

 

(4.6)

%

Revenue per unit

$

6,061

 

$

6,575

 

$

(514)

 

(7.8)

%

Gross profit (loss) per unit

$

(114)

 

$

(429)

 

$

315

 

73.4

%

Gross profit (loss) as a % of revenue

(1.9)

%

 

(6.5)

%

 

460

 

bps

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands, except unit and per unit data)

Same store wholesale vehicle:

 

 

 

 

 

 

 

Revenue

$

48,270

 

$

48,127

 

$

143

 

0.3

%

Gross profit (loss)

$

(631)

 

$

(3,074)

 

$

2,443

 

79.5

%

Unit sales

8,230

 

7,460

 

770

 

10.3

%

Revenue per unit

$

5,865

 

$

6,451

 

$

(586)

 

(9.1)

%

Gross profit (loss) per unit

$

(77)

 

$

(412)

 

$

335

 

81.3

%

Gross profit (loss) as a % of revenue

(1.3)

%

 

(6.4)

%

 

510

 

bps

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands, except unit and per unit data)

Same store wholesale vehicle:

 

 

 

 

 

 

 

Revenue

$

101,394

 

$

108,446

 

$

(7,052)

 

(6.5)

%

Gross profit (loss)

$

(1,773)

 

$

(6,955)

 

$

5,182

 

74.5

%

Unit sales

16,618

 

16,327

 

291

 

1.8

%

Revenue per unit

$

6,101

 

$

6,642

 

$

(541)

 

(8.1)

%

Gross profit (loss) per unit

$

(107)

 

$

(426)

 

$

319

 

74.9

%

Gross profit (loss) as a % of revenue

(1.7)

%

 

(6.4)

%

 

470

 

bps

 

Parts, Service and Collision Repair (“Fixed Operations”)

 

Three Months Ended June 30,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands)

Reported:

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

Customer pay

$

142,113

 

$

140,351

 

$

1,762

 

1.3

%

Warranty

69,809

 

63,888

 

5,921

 

9.3

%

Wholesale parts

40,027

 

40,844

 

(817)

 

(2.0)

%

Internal, sublet and other

103,363

 

101,671

 

1,692

 

1.7

%

Total

$

355,312

 

$

346,754

 

$

8,558

 

2.5

%

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

Customer pay

$

77,652

 

$

75,100

 

$

2,552

 

3.4

%

Warranty

39,039

 

35,871

 

3,168

 

8.8

%

Wholesale parts

6,872

 

6,900

 

(28)

 

(0.4)

%

Internal, sublet and other

46,983

 

49,180

 

(2,197)

 

(4.5)

%

Total

$

170,546

 

$

167,051

 

$

3,495

 

2.1

%

 

 

 

 

 

 

 

 

Gross profit as a % of revenue

 

 

 

 

 

 

 

Customer pay

54.6

%

 

53.5

%

 

110

bps

Warranty

55.9

%

 

56.1

%

 

(20)

bps

Wholesale parts

17.2

%

 

16.9

%

 

30

bps

Internal, sublet and other

45.5

%

 

48.4

%

 

(290)

bps

Total

48.0

%

 

48.2

%

 

(20)

bps

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands)

Reported:

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

Customer pay

$

279,834

 

$

282,706

 

$

(2,872)

 

(1.0)

%

Warranty

138,782

 

131,489

 

7,293

 

5.5

%

Wholesale parts

79,325

 

83,345

 

(4,020)

 

(4.8)

%

Internal, sublet and other

198,801

 

200,972

 

(2,171)

 

(1.1)

%

Total

$

696,742

 

$

698,512

 

$

(1,770)

 

(0.3)

%

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

Customer pay

$

151,978

 

$

151,449

 

$

529

 

0.3

%

Warranty

77,447

 

73,772

 

3,675

 

5.0

%

Wholesale parts

13,668

 

14,165

 

(497)

 

(3.5)

%

Internal, sublet and other

90,689

 

97,293

 

(6,604)

 

(6.8)

%

Total

$

333,782

 

$

336,679

 

$

(2,897)

 

(0.9)

%

 

 

 

 

 

 

 

 

Gross profit as a % of revenue

 

 

 

 

 

 

 

Customer pay

54.3

%

 

53.6

%

 

70

bps

Warranty

55.8

%

 

56.1

%

 

(30)

bps

Wholesale parts

17.2

%

 

17.0

%

 

20

bps

Internal, sublet and other

45.6

%

 

48.4

%

 

(280)

bps

Total

47.9

%

 

48.2

%

 

(30)

bps

 

Parts, Service and Collision Repair (“Fixed Operations”)

 

Three Months Ended June 30,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands)

Same Store:

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

Customer pay

$

141,061

 

$

134,096

 

$

6,965

 

5.2

%

Warranty

70,283

 

62,323

 

7,960

 

12.8

%

Wholesale parts

39,696

 

39,057

 

639

 

1.6

%

Internal, sublet and other

101,345

 

96,806

 

4,539

 

4.7

%

Total

$

352,385

 

$

332,282

 

$

20,103

 

6.0

%

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

Customer pay

$

77,079

 

$

71,426

 

$

5,653

 

7.9

%

Warranty

39,247

 

34,874

 

4,373

 

12.5

%

Wholesale parts

6,813

 

6,557

 

256

 

3.9

%

Internal, sublet and other

46,655

 

46,720

 

(65)

 

(0.1)

%

Total

$

169,794

 

$

159,577

 

$

10,217

 

6.4

%

 

 

 

 

 

 

 

 

Gross profit as a % of revenue

 

 

 

 

 

 

 

Customer pay

54.6

%

 

53.3

%

 

130

bps

Warranty

55.8

%

 

56.0

%

 

(20)

bps

Wholesale parts

17.2

%

 

16.8

%

 

40

bps

Internal, sublet and other

46.0

%

 

48.3

%

 

(230)

bps

Total

48.2

%

 

48.0

%

 

20

bps

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands)

Same Store:

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

Customer pay

$

277,155

 

$

264,824

 

$

12,331

 

4.7

%

Warranty

137,720

 

126,537

 

11,183

 

8.8

%

Wholesale parts

78,277

 

79,069

 

(792)

 

(1.0)

%

Internal, sublet and other

194,421

 

189,409

 

5,012

 

2.6

%

Total

$

687,573

 

$

659,839

 

$

27,734

 

4.2

%

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

Customer pay

$

150,513

 

$

141,236

 

$

9,277

 

6.6

%

Warranty

76,859

 

70,778

 

6,081

 

8.6

%

Wholesale parts

13,449

 

13,347

 

102

 

0.8

%

Internal, sublet and other

88,981

 

91,086

 

(2,105)

 

(2.3)

%

Total

$

329,802

 

$

316,447

 

$

13,355

 

4.2

%

 

 

 

 

 

 

 

 

Gross profit as a % of revenue

 

 

 

 

 

 

 

Customer pay

54.3

%

 

53.3

%

 

100

bps

Warranty

55.8

%

 

55.9

%

 

(10)

bps

Wholesale parts

17.2

%

 

16.9

%

 

30

bps

Internal, sublet and other

45.8

%

 

48.1

%

 

(230)

bps

Total

48.0

%

 

48.0

%

 

bps

 

Finance, Insurance and Other, Net (“F&I”)

 

Three Months Ended June 30,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands, except per unit data)

Reported:

 

 

 

 

 

 

 

Revenue

$

118,349

 

$

104,104

 

$

14,245

 

13.7

%

Unit sales

69,213

 

66,238

 

2,975

 

4.5

%

Gross profit per retail unit (excludes fleet)

$

1,710

 

$

1,572

 

$

138

 

8.8

%

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands, except per unit data)

Reported:

 

 

 

 

 

 

 

Revenue

$

224,587

 

$

197,829

 

$

26,758

 

13.5

%

Unit sales

132,594

 

129,154

 

3,440

 

2.7

%

Gross profit per retail unit (excludes fleet)

$

1,694

 

$

1,532

 

$

162

 

10.6

%

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands, except per unit data)

Same Store:

 

 

 

 

 

 

 

Revenue

$

108,818

 

$

95,816

 

$

13,002

 

13.6

%

Unit sales

66,210

 

62,363

 

3,847

 

6.2

%

Gross profit per retail unit (excludes fleet)

$

1,644

 

$

1,536

 

$

108

 

7.0

%

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

Better / (Worse)

 

2019

 

2018

 

Change

 

% Change

 

(In thousands, except per unit data)

Same Store:

 

 

 

 

 

 

 

Revenue

$

205,936

 

$

180,977

 

$

24,959

 

13.8

%

Unit sales

126,235

 

120,333

 

5,902

 

4.9

%

Gross profit per retail unit (excludes fleet)

$

1,631

 

$

1,504

 

$

127

 

8.4

%

Selling, General and Adminis

Contacts

Heath Byrd

Executive Vice President and Chief Financial Officer

(704) 566-2400

C.G. Saffer

Vice President and Chief Accounting Officer

(704) 566-2439

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