UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 23, 2016
SONIC AUTOMOTIVE, INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction
of incorporation)
1-13395 | 56-2010790 | |
(Commission File Number) |
(IRS Employer Identification No.) |
4401 Colwick Road Charlotte, North Carolina |
28211 | |
(Address of principal executive offices) | (Zip Code) |
Registrants telephone number, including area code: (704) 566-2400
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
On February 23, 2016, Sonic Automotive, Inc. (the Company) issued a press release announcing its financial results for its fiscal fourth quarter and fiscal year ended December 31, 2015 (the Earnings Press Release). A copy of the Earnings Press Release is attached hereto as Exhibit 99.1 and a copy of the earnings call presentation materials is attached hereto as Exhibit 99.2.
Item 7.01. | Regulation FD Disclosure. |
On February 23, 2016, in the Earnings Press Release, the Company announced the approval of a quarterly cash dividend.
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits. |
99.1 | Press release of Sonic Automotive, Inc., dated February 23, 2016 | |
99.2 | Earnings call presentation materials |
The information in this Current Report on Form 8-K, including the exhibits attached hereto, is being furnished and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SONIC AUTOMOTIVE, INC. | ||||||
Date: February 23, 2016 | By: | /s/ Stephen K. Coss | ||||
Stephen K. Coss | ||||||
Senior Vice President and General Counsel |
INDEX TO EXHIBITS
Exhibit No. |
Description | |
99.1 | Press release of Sonic Automotive, Inc., dated February 23, 2016 | |
99.2 | Earnings call presentation materials |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Sonic Automotive, Inc. Reports Record Results
Adjusted Continuing Operations Quarterly EPS of $0.61,
Increases Dividend by 33%
Fourth Quarter 2015 Results
| Record Q4 new retail units of 35,228, up 1.4% over the prior year quarter |
| Record Q4 pre-owned units and gross profit of 28,220 and $38.8 million, respectively |
| Record Q4 fixed operations gross profit of $169.1 million, up 8.2% over the prior year quarter |
| Record Q4 total gross profit of $363.8 million, up 4.4% over the prior year quarter |
| EchoPark® stores retailed 764 units |
Full Year 2015 Results
| Record annual new retail units of 138,129, up 1.6% over the prior year |
| Record annual pre-owned units of 117,123, up 6.4% over the prior year |
| Record annual pre-owned gross profit of $162.0 million, up 3.1% over the prior year |
| Record annual fixed operations gross profit of $655.4 million |
| Record annual total gross profit of $1.415 billion |
| EchoPark® stores retailed 3,225 units |
CHARLOTTE, N.C. February 23, 2016 Sonic Automotive, Inc. (NYSE: SAH), one of the nations largest automotive retailers, today reported adjusted net income from continuing operations for the fourth quarter of 2015 of $30.9 million, or $0.61 per diluted share. Included in these adjusted amounts are pre-tax expenses of $3.6 million, or $0.04 per diluted share, related to the Companys EchoPark® operations. Adjusted net income from continuing operations and related earnings per diluted share are non-GAAP financial measures. The schedules included in this press release reconcile these non-GAAP financial measures to the comparable GAAP financial measures.
Adjusted net income from continuing operations for the fourth quarter of 2014 was $32.5 million, or $0.63 per diluted share. Included in these adjusted amounts are pre-tax expenses of $7.1 million, or $0.08 per diluted share, related to the Companys EchoPark® operations.
On a GAAP basis, net income from continuing operations and related diluted earnings per share for the fourth quarter of 2015 were $31.5 million and $0.63 per share, respectively, compared to $27.0 million and $0.52 per diluted share, respectively, for the fourth quarter of 2014.
Sonic reported full year 2015 adjusted net income from continuing operations of $100.2 million, or $1.97 per diluted share, that includes expenses of $16.3 million, or $0.19 per diluted share, related to the Companys EchoPark® operations. For the full year of 2014, Sonic reported adjusted net income from continuing operations of $100.0 million, or $1.90 per diluted share, that includes expenses of $15.7 million, or $0.18 per diluted share, related to EchoPark®.
On a GAAP basis, net income from continuing operations for the full year of 2015 was $88.1 million, or $1.73 per diluted share, compared to full year 2014 results of $98.6 million, or $1.87 per diluted share.
Jeff Dyke, Sonics EVP of Operations, stated, The year ended up being a great year for Sonic and EchoPark®. I am very proud of our team as we progressed together on our long-term strategy to redefine the Automotive Guest Experience. This is a huge undertaking that we are confident will reward our Guests, Associates and Long-Term Shareholders. We have been able to grow gross across all of our revenue streams with the exception of new vehicles, which is a direct reflection of manufacturers inventory growth in particular in the luxury category. Some of the OEMs have simply over produced and it has caused competitive and margin pressures that we have not experienced in several years. However, the stability and strength of our pre-owned revenue stream has continued to allow us to drive additional profitability in that area. In addition, we have overcome the warranty mix issues from earlier in the year and we were able to increase same store fixed operations gross profit 9.6% in the fourth quarter of 2015 compared to the fourth quarter of 2014. Our focus on increasing customer pay, up 7.8% on a same store basis during the fourth quarter, was key to achieving this level of growth.
We are excited about the growth we are planning for EchoPark® in 2016 and 2017. Two new stores in the Denver market will open in the first half of 2016 with two more coming in the first part of 2017. We also have plans in place to add additional stores in at least two different markets beginning in Q4 2016 depending on real-estate closing dates.
Dividend
Sonics Board of Directors approved a quarterly dividend of $0.05 per share payable in cash for stockholders of record on March 15, 2016. The dividend will be payable on April 15, 2016. This represents a 33% increase in the dividend rate from the prior quarter amount of $0.0375 per share.
2016 Outlook
B. Scott Smith, the Companys Chief Executive Officer, noted, I am very pleased with the performance of our team in the fourth quarter and the year. Subsequent to December 31, 2015, market news and expectations related to the retail automotive sector created pressure on public company valuations. As a result, our Board of Directors increased our authorization to repurchase shares by $100.0 million. During the first quarter of 2016, we repurchased approximately 4.0 million shares, roughly 7.9% of outstanding shares as of December 31, 2015, for approximately $72.0 million.
We expect 2016 to continue to be favorable to dealers and anticipate new vehicle industry volume to be between 17.3 million and 17.6 million units, but expect new vehicle GPU pressure to continue. We project diluted earnings per share from continuing operations for 2016 to be between $2.07 and $2.17 per share. This range includes the effect of projected EchoPark® results and expansion. We are projecting a loss related to EchoPark® of between $0.21 and $0.23 per diluted share. We will have additional comments on our 2016 outlook in our earnings call later today.
Fourth Quarter Earnings Conference Call
Senior management will host a conference call today at 11:00 A.M. (Eastern) to discuss the quarters 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 Earnings Conference Calls.
Presentation materials for the conference call can be accessed on the Companys website at www.sonicautomotive.com by clicking on the Investor Relations tab under Our Company and choosing Webcasts & Presentations.
The conference call will also be available live by dialing in 10 minutes prior to the start of the call at:
Domestic: 1.877.450.3867
International: 1.706.643.0958
Conference ID: 32450261
A conference call replay will be available one hour following the call for seven days and can be accessed by calling:
Domestic: 1.855.859.2056
International: 1.404.537.3406
Conference ID: 32450261
About Sonic Automotive
Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, N.C., is one of the nations largest automotive retailers. Sonic can be reached on the web at www.sonicautomotive.com.
Included herein are forward-looking statements, including statements with respect to anticipated future success and impacts from the implementation of our planned customer experience and EchoPark® store initiatives. There are many factors that affect managements views about future events and trends of the Companys business. These factors involve risk and uncertainties that could cause actual results or trends to differ materially from managements view, including without limitation, 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 Companys annual report on Form 10-K for the year ending December 31, 2014. The Company does not undertake any obligation to update forward-looking information.
###
Contact: |
Heath Byrd, Chief Financial Officer (704) 566-2400 | |
C.G. Saffer, Vice President and Chief Accounting Officer (704) 566-2439 |
Sonic Automotive, Inc.
Results of Operations (Unaudited)
This release contains certain non-GAAP financial measures as defined under SEC rules, such as, but not limited to, adjusted income from continuing operations and related earnings per share data. The Company has reconciled these measures to the most directly comparable GAAP measures in the release. The Company believes that these non-GAAP financial measures improve the transparency of the Companys disclosure by providing period-to-period comparability of the Companys results from operations.
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(In thousands, except per share and unit data) | ||||||||||||||||
Revenues: |
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New retail vehicles |
$ | 1,377,661 | $ | 1,337,896 | $ | 5,205,688 | $ | 5,046,010 | ||||||||
Fleet vehicles |
22,101 | 12,899 | 59,713 | 78,019 | ||||||||||||
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Total new vehicles |
1,399,762 | 1,350,795 | 5,265,401 | 5,124,029 | ||||||||||||
Used vehicles |
607,430 | 562,993 | 2,512,024 | 2,310,247 | ||||||||||||
Wholesale vehicles |
34,579 | 38,361 | 155,339 | 166,158 | ||||||||||||
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Total vehicles |
2,041,771 | 1,952,149 | 7,932,764 | 7,600,434 | ||||||||||||
Parts, service and collision repair |
345,068 | 322,924 | 1,364,947 | 1,296,570 | ||||||||||||
Finance, insurance and other, net |
83,796 | 76,755 | 326,588 | 300,095 | ||||||||||||
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Total revenues |
2,470,635 | 2,351,828 | 9,624,299 | 9,197,099 | ||||||||||||
Gross profit |
363,848 | 348,464 | 1,414,612 | 1,365,900 | ||||||||||||
Selling, general and administrative expenses |
(275,002 | ) | (264,402 | ) | (1,110,565 | ) | (1,067,433 | ) | ||||||||
Impairment charges |
(1,257 | ) | (6,379 | ) | (17,955 | ) | (6,594 | ) | ||||||||
Depreciation and amortization |
(17,846 | ) | (15,213 | ) | (68,799 | ) | (58,260 | ) | ||||||||
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Operating income (loss) |
69,743 | 62,470 | 217,293 | 233,613 | ||||||||||||
Other income (expense): |
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Interest expense, floor plan |
(5,840 | ) | (4,852 | ) | (21,326 | ) | (18,793 | ) | ||||||||
Interest expense, other, net |
(12,275 | ) | (12,614 | ) | (50,910 | ) | (53,190 | ) | ||||||||
Other income (expense), net |
| (2 | ) | 99 | 97 | |||||||||||
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Total other income (expense) |
(18,115 | ) | (17,468 | ) | (72,137 | ) | (71,886 | ) | ||||||||
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Income (loss) from continuing operations before taxes |
51,628 | 45,002 | 145,156 | 161,727 | ||||||||||||
Provision for income taxes for continuing operations - benefit (expense) |
(20,121 | ) | (18,045 | ) | (57,065 | ) | (63,168 | ) | ||||||||
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Income (loss) from continuing operations |
31,507 | 26,957 | 88,091 | 98,559 | ||||||||||||
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Income (loss) from discontinued operations |
(449 | ) | (831 | ) | (1,780 | ) | (1,342 | ) | ||||||||
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Net income (loss) |
$ | 31,058 | $ | 26,126 | $ | 86,311 | $ | 97,217 | ||||||||
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Diluted earnings (loss) per common share: |
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Earnings (loss) per share from continuing operations |
$ | 0.63 | $ | 0.52 | $ | 1.73 | $ | 1.87 | ||||||||
Earnings (loss) per share from discontinued operations |
(0.01 | ) | (0.02 | ) | (0.03 | ) | (0.03 | ) | ||||||||
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Earnings (loss) per common share |
$ | 0.62 | $ | 0.50 | $ | 1.70 | $ | 1.84 | ||||||||
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Weighted average common shares outstanding |
50,278 | 51,834 | 50,883 | 52,563 | ||||||||||||
Gross Margin Data (Continuing Operations): |
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New retail vehicles |
5.4 | % | 5.9 | % | 5.2 | % | 5.7 | % | ||||||||
Fleet vehicles |
0.1 | % | 1.1 | % | (0.3 | %) | 1.9 | % | ||||||||
Total new vehicles |
5.3 | % | 5.8 | % | 5.1 | % | 5.6 | % | ||||||||
Used vehicles |
6.4 | % | 6.7 | % | 6.5 | % | 6.8 | % | ||||||||
Wholesale vehicles |
(5.8 | %) | (2.9 | %) | (4.7 | %) | (2.2 | %) | ||||||||
Parts, service and collision repair |
49.0 | % | 48.4 | % | 48.8 | % | 48.1 | % | ||||||||
Finance, insurance and other |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Overall gross margin |
14.7 | % | 14.8 | % | 14.7 | % | 14.9 | % | ||||||||
SG&A Expenses (Continuing Operations): |
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Compensation |
$ | 169,510 | $ | 155,382 | $ | 666,668 | $ | 638,875 | ||||||||
Advertising |
15,470 | 15,409 | 61,630 | 57,437 | ||||||||||||
Rent |
18,481 | 18,384 | 73,539 | 73,707 | ||||||||||||
Other |
71,541 | 75,227 | 308,728 | 297,414 | ||||||||||||
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Total SG&A expenses |
$ | 275,002 | $ | 264,402 | $ | 1,110,565 | $ | 1,067,433 | ||||||||
SG&A expenses as % of gross profit |
75.6 | % | 75.9 | % | 78.5 | % | 78.1 | % | ||||||||
Operating Margin % |
2.8 | % | 2.7 | % | 2.3 | % | 2.5 | % | ||||||||
Unit Data (Continuing Operations): |
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New retail units |
35,228 | 34,755 | 138,129 | 135,932 | ||||||||||||
Fleet units |
628 | 352 | 1,872 | 2,485 | ||||||||||||
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Total new units |
35,856 | 35,107 | 140,001 | 138,417 | ||||||||||||
Used units |
28,220 | 26,406 | 117,123 | 110,113 | ||||||||||||
Wholesale units |
6,594 | 6,912 | 30,168 | 29,946 |
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Per Share Data
Three Months Ended December 31, 2015 | ||||||||||||||||||||||||||||
Income (Loss) From Continuing Operations |
Income (Loss) From Discontinued Operations |
Net Income (Loss) | ||||||||||||||||||||||||||
Weighted Average Shares |
Amount | Per Share Amount |
Amount | Per Share Amount |
Amount | Per Share Amount |
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(In thousands, except per share amounts) | ||||||||||||||||||||||||||||
Reported: |
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Earnings (loss) and shares |
49,872 | $ | 31,507 | $ | (449 | ) | $ | 31,058 | ||||||||||||||||||||
Effect of participating securities: |
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Non-vested restricted stock |
(13 | ) | | (13 | ) | |||||||||||||||||||||||
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Basic earnings (loss) and shares |
49,872 | $ | 31,494 | $ | 0.63 | $ | (449 | ) | $ | (0.01 | ) | $ | 31,045 | $ | 0.62 | |||||||||||||
Effect of dilutive securities: |
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Stock compensation plans |
406 | |||||||||||||||||||||||||||
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Diluted earnings (loss) and shares |
50,278 | $ | 31,494 | $ | 0.63 | $ | (449 | ) | $ | (0.01 | ) | $ | 31,045 | $ | 0.62 | |||||||||||||
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Adjustments (net of tax): |
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Gain on disposal |
$ | (1,417 | ) | $ | (0.03 | ) | $ | | $ | | $ | (1,417 | ) | $ | (0.03 | ) | ||||||||||||
Impairment charges |
766 | 0.01 | | | 766 | 0.01 | ||||||||||||||||||||||
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Total adjustments |
$ | (651 | ) | $ | (0.02 | ) | $ | | $ | | $ | (651 | ) | $ | (0.02 | ) | ||||||||||||
Adjusted: |
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Earnings (loss) and |
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Diluted earnings (loss) per share (1) |
$ | 30,856 | $ | 0.61 | $ | (449 | ) | $ | (0.01 | ) | $ | 30,407 | $ | 0.60 | ||||||||||||||
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(1) | Net loss attributable to EchoPark® operations was $0.04 per fully diluted share in the three months ended December 31, 2015. |
Three Months Ended December 31, 2014 | ||||||||||||||||||||||||||||
Income (Loss) From Continuing Operations |
Income (Loss) From Discontinued Operations |
Net Income (Loss) | ||||||||||||||||||||||||||
Weighted Average Shares |
Amount | Per Share Amount |
Amount | Per Share Amount |
Amount | Per Share Amount |
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(In thousands, except per share amounts) | ||||||||||||||||||||||||||||
Reported: |
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Earnings (loss) and shares |
51,272 | $ | 26,957 | $ | (831 | ) | $ | 26,126 | ||||||||||||||||||||
Effect of participating securities: |
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Non-vested restricted stock and stock units |
(86 | ) | | (86 | ) | |||||||||||||||||||||||
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Basic earnings (loss) and shares |
51,272 | $ | 26,871 | $ | 0.52 | $ | (831 | ) | $ | (0.01 | ) | $ | 26,040 | $ | 0.51 | |||||||||||||
Effect of dilutive securities: |
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Stock compensation plans |
562 | |||||||||||||||||||||||||||
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Diluted earnings (loss) and shares |
51,834 | $ | 26,871 | $ | 0.52 | $ | (831 | ) | $ | (0.02 | ) | $ | 26,040 | $ | 0.50 | |||||||||||||
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Adjustments (net of tax): |
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Gain on disposal |
$ | (157 | ) | $ | | $ | | $ | | $ | (157 | ) | $ | | ||||||||||||||
Impairment charges |
3,943 | 0.08 | | | 3,943 | 0.08 | ||||||||||||||||||||||
Storm damage and other |
949 | 0.01 | | | 949 | 0.01 | ||||||||||||||||||||||
Permanent tax differences from disposals |
853 | 0.02 | | | 853 | 0.02 | ||||||||||||||||||||||
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Total adjustments |
$ | 5,588 | $ | 0.11 | $ | | $ | | $ | 5,588 | $ | 0.11 | ||||||||||||||||
Adjusted: |
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Earnings (loss) and |
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Diluted earnings (loss) per share (2) |
$ | 32,545 | $ | 0.63 | $ | (831 | ) | $ | (0.02 | ) | $ | 31,714 | $ | 0.61 | ||||||||||||||
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(2) | Net loss attributable to EchoPark® operations was $0.08 per fully diluted share in the three months ended December 31, 2014. |
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Per Share Data
Twelve Months Ended December 31, 2015 | ||||||||||||||||||||||||||||
Income (Loss) From Continuing Operations |
Income (Loss) From Discontinued Operations |
Net Income (Loss) | ||||||||||||||||||||||||||
Weighted Average Shares |
Amount | Per Share Amount |
Amount | Per Share Amount |
Amount | Per Share Amount |
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(In thousands, except per share amounts) | ||||||||||||||||||||||||||||
Reported: |
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Earnings (loss) and shares |
50,489 | $ | 88,091 | $ | (1,780 | ) | $ | 86,311 | ||||||||||||||||||||
Effect of participating securities: |
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Non-vested restricted stock and stock units |
(36 | ) | | (36 | ) | |||||||||||||||||||||||
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Basic earnings (loss) and shares |
50,489 | $ | 88,055 | $ | 1.74 | $ | (1,780 | ) | $ | (0.03 | ) | $ | 86,275 | $ | 1.71 | |||||||||||||
Effect of dilutive securities: |
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Stock compensation plans |
394 | |||||||||||||||||||||||||||
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Diluted earnings (loss) and shares |
50,883 | $ | 88,055 | $ | 1.73 | $ | (1,780 | ) | $ | (0.03 | ) | $ | 86,275 | $ | 1.70 | |||||||||||||
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Adjustments (net of tax): |
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Gain on disposal |
$ | (2,000 | ) | $ | (0.04 | ) | $ | | $ | | $ | (2,000 | ) | $ | (0.04 | ) | ||||||||||||
Impairment charges |
10,930 | 0.22 | | | 10,930 | 0.22 | ||||||||||||||||||||||
Storm damage and other |
3,134 | 0.06 | | | 3,134 | 0.06 | ||||||||||||||||||||||
Effect of rounding |
| | | (0.01 | ) | | (0.01 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total adjustments |
$ | 12,064 | $ | 0.24 | $ | | $ | (0.01 | ) | $ | 12,064 | $ | 0.23 | |||||||||||||||
Adjusted: |
||||||||||||||||||||||||||||
Earnings (loss) and |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||
Diluted earnings (loss) per share (3) |
$ | 100,155 | $ | 1.97 | $ | (1,780 | ) | $ | (0.04 | ) | $ | 98,375 | $ | 1.93 | ||||||||||||||
|
|
|
|
|
|
(3) | Net loss attributable to EchoPark® operations was $0.19 per fully diluted share in the twelve months ended December 31, 2015. |
Twelve Months Ended December 31, 2014 | ||||||||||||||||||||||||||||
Income (Loss) From Continuing Operations |
Income (Loss) From Discontinued Operations |
Net Income (Loss) | ||||||||||||||||||||||||||
Weighted Average Shares |
Amount | Per Share Amount |
Amount | Per Share Amount |
Amount | Per Share Amount |
||||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||||||
Reported: |
||||||||||||||||||||||||||||
Earnings (loss) and shares |
52,065 | $ | 98,559 | $ | (1,342 | ) | $ | 97,217 | ||||||||||||||||||||
Effect of participating securities: |
||||||||||||||||||||||||||||
Non-vested restricted stock and stock units |
(311 | ) | | (311 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Basic earnings (loss) and shares |
52,065 | $ | 98,248 | $ | 1.89 | $ | (1,342 | ) | $ | (0.03 | ) | $ | 96,906 | $ | 1.86 | |||||||||||||
Effect of dilutive securities: |
||||||||||||||||||||||||||||
Stock compensation plans |
498 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
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|
|
|
|
|||||||||||||||
Diluted earnings (loss) and shares |
52,563 | $ | 98,248 | $ | 1.87 | $ | (1,342 | ) | $ | (0.03 | ) | $ | 96,906 | $ | 1.84 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Adjustments (net of tax): |
||||||||||||||||||||||||||||
Gain on disposal |
$ | (7,273 | ) | $ | (0.14 | ) | $ | | $ | | $ | (7,273 | ) | $ | (0.14 | ) | ||||||||||||
Impairment charges |
4,459 | 0.08 | | | 4,459 | 0.08 | ||||||||||||||||||||||
Storm damage and other |
3,434 | 0.07 | | | 3,434 | 0.07 | ||||||||||||||||||||||
Permanent tax differences from disposals |
853 | 0.02 | | | 853 | 0.02 | ||||||||||||||||||||||
Lease exit adjustments |
| | (844 | ) | (0.01 | ) | (844 | ) | (0.01 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total adjustments |
$ | 1,473 | $ | 0.03 | $ | (844 | ) | $ | (0.01 | ) | $ | 629 | $ | 0.02 | ||||||||||||||
Adjusted: |
||||||||||||||||||||||||||||
Earnings (loss) and |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||
Diluted earnings (loss) per share (4) |
$ | 100,032 | $ | 1.90 | $ | (2,186 | ) | $ | (0.04 | ) | $ | 97,846 | $ | 1.86 | ||||||||||||||
|
|
|
|
|
|
(4) | Net loss attributable to EchoPark® operations was $0.18 per fully diluted share in the twelve months ended December 31, 2014. |
Sonic Automotive, Inc.
Results of Operations (Unaudited)
New Vehicles
Three Months Ended December 31, | Better / (Worse) | |||||||||||||||
2015 | 2014 | Change | % Change | |||||||||||||
(In thousands, except units and per unit data) | ||||||||||||||||
Reported: |
||||||||||||||||
Revenue |
$ | 1,399,762 | $ | 1,350,795 | $ | 48,967 | 3.6 | % | ||||||||
Gross profit |
$ | 74,209 | $ | 78,734 | $ | (4,525 | ) | (5.7 | %) | |||||||
Unit sales |
35,856 | 35,107 | 749 | 2.1 | % | |||||||||||
Revenue per unit |
$ | 39,038 | $ | 38,477 | $ | 561 | 1.5 | % | ||||||||
Gross profit per unit |
$ | 2,070 | $ | 2,243 | $ | (173 | ) | (7.7 | %) | |||||||
Gross profit as a % of revenue |
5.3 | % | 5.8 | % | (50 | ) bps | ||||||||||
Twelve Months Ended December 31, | Better / (Worse) | |||||||||||||||
2015 | 2014 | Change | % Change | |||||||||||||
(In thousands, except units and per unit data) | ||||||||||||||||
Reported: |
||||||||||||||||
Revenue |
$ | 5,265,401 | $ | 5,124,029 | $ | 141,372 | 2.8 | % | ||||||||
Gross profit |
$ | 267,929 | $ | 288,626 | $ | (20,697 | ) | (7.2 | %) | |||||||
Unit sales |
140,001 | 138,417 | 1,584 | 1.1 | % | |||||||||||
Revenue per unit |
$ | 37,610 | $ | 37,019 | $ | 591 | 1.6 | % | ||||||||
Gross profit per unit |
$ | 1,914 | $ | 2,085 | $ | (171 | ) | (8.2 | %) | |||||||
Gross profit as a % of revenue |
5.1 | % | 5.6 | % | (50 | ) bps | ||||||||||
Three Months Ended December 31, | Better / (Worse) | |||||||||||||||
2015 | 2014 | Change | % Change | |||||||||||||
(In thousands, except units and per unit data) | ||||||||||||||||
Same Store: |
||||||||||||||||
Revenue |
$ | 1,391,427 | $ | 1,333,400 | $ | 58,027 | 4.4 | % | ||||||||
Gross profit |
$ | 74,077 | $ | 78,030 | $ | (3,953 | ) | (5.1 | %) | |||||||
Unit sales |
35,686 | 34,673 | 1,013 | 2.9 | % | |||||||||||
Revenue per unit |
$ | 38,991 | $ | 38,456 | $ | 535 | 1.4 | % | ||||||||
Gross profit per unit |
$ | 2,076 | $ | 2,250 | $ | (174 | ) | (7.7 | %) | |||||||
Gross profit as a % of revenue |
5.3 | % | 5.9 | % | (60 | ) bps | ||||||||||
Twelve Months Ended December 31, | Better / (Worse) | |||||||||||||||
2015 | 2014 | Change | % Change | |||||||||||||
(In thousands, except units and per unit data) | ||||||||||||||||
Same Store: |
||||||||||||||||
Revenue |
$ | 5,187,076 | $ | 4,965,615 | $ | 221,461 | 4.5 | % | ||||||||
Gross profit |
$ | 264,124 | $ | 280,264 | $ | (16,140 | ) | (5.8 | %) | |||||||
Unit sales |
137,884 | 134,062 | 3,822 | 2.9 | % | |||||||||||
Revenue per unit |
$ | 37,619 | $ | 37,040 | $ | 579 | 1.6 | % | ||||||||
Gross profit per unit |
$ | 1,916 | $ | 2,091 | $ | (175 | ) | (8.4 | %) | |||||||
Gross profit as a % of revenue |
5.1 | % | 5.6 | % | (50 | ) bps |
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Used Vehicles
Three Months Ended December 31, | Better / (Worse) | |||||||||||||||
2015 | 2014 | Change | % Change | |||||||||||||
(In thousands, except units and per unit data) | ||||||||||||||||
Reported: |
||||||||||||||||
Revenue |
$ | 607,430 | $ | 562,993 | $ | 44,437 | 7.9 | % | ||||||||
Gross profit |
$ | 38,772 | $ | 37,834 | $ | 938 | 2.5 | % | ||||||||
Unit sales |
28,220 | 26,406 | 1,814 | 6.9 | % | |||||||||||
Revenue per unit |
$ | 21,525 | $ | 21,321 | $ | 204 | 1.0 | % | ||||||||
Gross profit per unit |
$ | 1,374 | $ | 1,433 | $ | (59 | ) | (4.1 | %) | |||||||
Gross profit as a % of revenue |
6.4 | % | 6.7 | % | (30 | ) bps | ||||||||||
Twelve Months Ended December 31, | Better / (Worse) | |||||||||||||||
2015 | 2014 | Change | % Change | |||||||||||||
(In thousands, except units and per unit data) | ||||||||||||||||
Reported: |
||||||||||||||||
Revenue |
$ | 2,512,024 | $ | 2,310,247 | $ | 201,777 | 8.7 | % | ||||||||
Gross profit |
$ | 162,042 | $ | 157,246 | $ | 4,796 | 3.0 | % | ||||||||
Unit sales |
117,123 | 110,113 | 7,010 | 6.4 | % | |||||||||||
Revenue per unit |
$ | 21,448 | $ | 20,981 | $ | 467 | 2.2 | % | ||||||||
Gross profit per unit |
$ | 1,384 | $ | 1,428 | $ | (44 | ) | (3.1 | %) | |||||||
Gross profit as a % of revenue |
6.5 | % | 6.8 | % | (30 | ) bps | ||||||||||
Three Months Ended December 31, | Better / (Worse) | |||||||||||||||
2015 | 2014 | Change | % Change | |||||||||||||
(In thousands, except units and per unit data) | ||||||||||||||||
Same Store: |
||||||||||||||||
Revenue |
$ | 586,414 | $ | 546,962 | $ | 39,452 | 7.2 | % | ||||||||
Gross profit |
$ | 37,523 | $ | 37,011 | $ | 512 | 1.4 | % | ||||||||
Unit sales |
27,182 | 25,597 | 1,585 | 6.2 | % | |||||||||||
Revenue per unit |
$ | 21,574 | $ | 21,368 | $ | 206 | 1.0 | % | ||||||||
Gross profit per unit |
$ | 1,380 | $ | 1,446 | $ | (66 | ) | (4.6 | %) | |||||||
Gross profit as a % of revenue |
6.4 | % | 6.8 | % | (40 | ) bps | ||||||||||
Twelve Months Ended December 31, | Better / (Worse) | |||||||||||||||
2015 | 2014 | Change | % Change | |||||||||||||
(In thousands, except units and per unit data) | ||||||||||||||||
Same Store: |
||||||||||||||||
Revenue |
$ | 2,394,454 | $ | 2,211,513 | $ | 182,941 | 8.3 | % | ||||||||
Gross profit |
$ | 155,448 | $ | 152,355 | $ | 3,093 | 2.0 | % | ||||||||
Unit sales |
111,212 | 105,161 | 6,051 | 5.8 | % | |||||||||||
Revenue per unit |
$ | 21,531 | $ | 21,030 | $ | 501 | 2.4 | % | ||||||||
Gross profit per unit |
$ | 1,398 | $ | 1,449 | $ | (51 | ) | (3.5 | %) | |||||||
Gross profit as a % of revenue |
6.5 | % | 6.9 | % | (40 | ) bps |
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Wholesale Vehicles
Three Months Ended December 31, | Better / (Worse) | |||||||||||||||
2015 | 2014 | Change | % Change | |||||||||||||
(In thousands, except units and per unit data) | ||||||||||||||||
Reported: |
||||||||||||||||
Revenue |
$ | 34,579 | $ | 38,361 | $ | (3,782 | ) | (9.9 | %) | |||||||
Gross profit (loss) |
$ | (2,003 | ) | $ | (1,122 | ) | $ | (881 | ) | (78.5 | %) | |||||
Unit sales |
6,594 | 6,912 | (318 | ) | (4.6 | %) | ||||||||||
Revenue per unit |
$ | 5,244 | $ | 5,550 | $ | (306 | ) | (5.5 | %) | |||||||
Gross profit (loss) per unit |
$ | (304 | ) | $ | (162 | ) | $ | (142 | ) | (87.7 | %) | |||||
Gross profit (loss) as a % of revenue |
(5.8 | %) | (2.9 | %) | (290 | ) bps | ||||||||||
Twelve Months Ended December 31, | Better / (Worse) | |||||||||||||||
2015 | 2014 | Change | % Change | |||||||||||||
(In thousands, except units and per unit data) | ||||||||||||||||
Reported: |
||||||||||||||||
Revenue |
$ | 155,339 | $ | 166,158 | $ | (10,819 | ) | (6.5 | %) | |||||||
Gross profit (loss) |
$ | (7,368 | ) | $ | (3,616 | ) | $ | (3,752 | ) | (103.8 | %) | |||||
Unit sales |
30,168 | 29,946 | 222 | 0.7 | % | |||||||||||
Revenue per unit |
$ | 5,149 | $ | 5,549 | $ | (400 | ) | (7.2 | %) | |||||||
Gross profit (loss) per unit |
$ | (244 | ) | $ | (121 | ) | $ | (123 | ) | (101.7 | %) | |||||
Gross profit (loss) as a % of revenue |
(4.7 | %) | (2.2 | %) | (250 | ) bps | ||||||||||
Three Months Ended December 31, | Better / (Worse) | |||||||||||||||
2015 | 2014 | Change | % Change | |||||||||||||
(In thousands, except units and per unit data) | ||||||||||||||||
Same Store: |
||||||||||||||||
Revenue |
$ | 33,352 | $ | 37,419 | $ | (4,067 | ) | (10.9 | %) | |||||||
Gross profit (loss) |
$ | (1,850 | ) | $ | (930 | ) | $ | (920 | ) | (98.9 | %) | |||||
Unit sales |
6,312 | 6,796 | (484 | ) | (7.1 | %) | ||||||||||
Revenue per unit |
$ | 5,284 | $ | 5,506 | $ | (222 | ) | (4.0 | %) | |||||||
Gross profit (loss) per unit |
$ | (293 | ) | $ | (137 | ) | $ | (156 | ) | (113.9 | %) | |||||
Gross profit (loss) as a % of revenue |
(5.5 | %) | (2.5 | %) | (300 | ) bps | ||||||||||
Twelve Months Ended December 31, | Better / (Worse) | |||||||||||||||
2015 | 2014 | Change | % Change | |||||||||||||
(In thousands, except units and per unit data) | ||||||||||||||||
Same Store: |
||||||||||||||||
Revenue |
$ | 149,330 | $ | 160,343 | $ | (11,013 | ) | (6.9 | %) | |||||||
Gross profit (loss) |
$ | (6,689 | ) | $ | (3,303 | ) | $ | (3,386 | ) | (102.5 | %) | |||||
Unit sales |
28,723 | 28,968 | (245 | ) | (0.8 | %) | ||||||||||
Revenue per unit |
$ | 5,199 | $ | 5,535 | $ | (336 | ) | (6.1 | %) | |||||||
Gross profit (loss) per unit |
$ | (233 | ) | $ | (114 | ) | $ | (119 | ) | (104.4 | %) | |||||
Gross profit (loss) as a % of revenue |
(4.5 | %) | (2.1 | %) | (240 | ) bps |
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Parts, Service and Collision Repair (Fixed Operations)
Three Months Ended December 31, | Better / (Worse) | |||||||||||||||
2015 | 2014 | Change | % Change | |||||||||||||
(In thousands) | ||||||||||||||||
Reported: |
||||||||||||||||
Revenue |
||||||||||||||||
Customer pay |
$ | 145,787 | $ | 137,524 | $ | 8,263 | 6.0 | % | ||||||||
Warranty |
58,923 | 52,396 | 6,527 | 12.5 | % | |||||||||||
Wholesale parts |
44,602 | 46,615 | (2,013 | ) | (4.3 | %) | ||||||||||
Internal, sublet and other |
95,756 | 86,389 | 9,367 | 10.8 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 345,068 | $ | 322,924 | $ | 22,144 | 6.9 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
||||||||||||||||
Customer pay |
$ | 79,475 | $ | 74,734 | $ | 4,741 | 6.3 | % | ||||||||
Warranty |
31,795 | 29,135 | 2,660 | 9.1 | % | |||||||||||
Wholesale parts |
7,917 | 8,042 | (125 | ) | (1.6 | %) | ||||||||||
Internal, sublet and other |
49,886 | 44,353 | 5,533 | 12.5 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 169,074 | $ | 156,264 | $ | 12,810 | 8.2 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit as a % of revenue |
||||||||||||||||
Customer pay |
54.5 | % | 54.3 | % | 20 | bps | ||||||||||
Warranty |
54.0 | % | 55.6 | % | (160 | ) bps | ||||||||||
Wholesale parts |
17.8 | % | 17.3 | % | 50 | bps | ||||||||||
Internal, sublet and other |
52.1 | % | 51.3 | % | 80 | bps | ||||||||||
|
|
|
|
|
|
|||||||||||
Total |
49.0 | % | 48.4 | % | 60 | bps | ||||||||||
Twelve Months Ended December 31, | Better / (Worse) | |||||||||||||||
2015 | 2014 | Change | % Change | |||||||||||||
(In thousands) | ||||||||||||||||
Reported: |
||||||||||||||||
Revenue |
||||||||||||||||
Customer pay |
$ | 577,265 | $ | 565,144 | $ | 12,121 | 2.1 | % | ||||||||
Warranty |
228,093 | 194,468 | 33,625 | 17.3 | % | |||||||||||
Wholesale parts |
181,296 | 188,687 | (7,391 | ) | (3.9 | %) | ||||||||||
Internal, sublet and other |
378,293 | 348,271 | 30,022 | 8.6 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 1,364,947 | $ | 1,296,570 | $ | 68,377 | 5.3 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
||||||||||||||||
Customer pay |
$ | 316,026 | $ | 309,885 | $ | 6,141 | 2.0 | % | ||||||||
Warranty |
126,571 | 106,298 | 20,273 | 19.1 | % | |||||||||||
Wholesale parts |
32,249 | 32,633 | (384 | ) | (1.2 | %) | ||||||||||
Internal, sublet and other |
190,575 | 174,733 | 15,842 | 9.1 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 665,421 | $ | 623,549 | $ | 41,872 | 6.7 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit as a % of revenue |
||||||||||||||||
Customer pay |
54.7 | % | 54.8 | % | (10 | ) bps | ||||||||||
Warranty |
55.5 | % | 54.7 | % | 80 | bps | ||||||||||
Wholesale parts |
17.8 | % | 17.3 | % | 50 | bps | ||||||||||
Internal, sublet and other |
50.4 | % | 50.2 | % | 20 | bps | ||||||||||
|
|
|
|
|
|
|||||||||||
Total |
48.8 | % | 48.1 | % | 70 | bps |
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Parts, Service and Collision Repair (Fixed Operations)
Three Months Ended December 31, | Better / (Worse) | |||||||||||||||
2015 | 2014 | Change | % Change | |||||||||||||
(In thousands) | ||||||||||||||||
Same Store: |
||||||||||||||||
Revenue |
||||||||||||||||
Customer pay |
$ | 144,672 | $ | 134,662 | $ | 10,010 | 7.4 | % | ||||||||
Warranty |
58,520 | 51,482 | 7,038 | 13.7 | % | |||||||||||
Wholesale parts |
44,325 | 45,603 | (1,278 | ) | (2.8 | %) | ||||||||||
Internal, sublet and other |
93,519 | 83,613 | 9,906 | 11.8 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 341,036 | $ | 315,360 | $ | 25,676 | 8.1 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
||||||||||||||||
Customer pay |
$ | 78,881 | $ | 73,159 | $ | 5,722 | 7.8 | % | ||||||||
Warranty |
31,584 | 28,649 | 2,935 | 10.2 | % | |||||||||||
Wholesale parts |
7,858 | 7,845 | 13 | 0.2 | % | |||||||||||
Internal, sublet and other |
48,925 | 42,897 | 6,028 | 14.1 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 167,248 | $ | 152,550 | $ | 14,698 | 9.6 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit as a % of revenue |
||||||||||||||||
Customer pay |
54.5 | % | 54.3 | % | 20 | bps | ||||||||||
Warranty |
54.0 | % | 55.6 | % | (160 | ) bps | ||||||||||
Wholesale parts |
17.7 | % | 17.2 | % | 50 | bps | ||||||||||
Internal, sublet and other |
52.3 | % | 51.3 | % | 100 | bps | ||||||||||
|
|
|
|
|
|
|||||||||||
Total |
49.0 | % | 48.4 | % | 60 | bps | ||||||||||
Twelve Months Ended December 31, | Better / (Worse) | |||||||||||||||
2015 | 2014 | Change | % Change | |||||||||||||
(In thousands) | ||||||||||||||||
Same Store: |
||||||||||||||||
Revenue |
||||||||||||||||
Customer pay |
$ | 566,939 | $ | 545,349 | $ | 21,590 | 4.0 | % | ||||||||
Warranty |
224,478 | 187,094 | 37,384 | 20.0 | % | |||||||||||
Wholesale parts |
178,113 | 181,878 | (3,765 | ) | (2.1 | %) | ||||||||||
Internal, sublet and other |
365,554 | 335,435 | 30,119 | 9.0 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 1,335,084 | $ | 1,249,756 | $ | 85,328 | 6.8 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
||||||||||||||||
Customer pay |
$ | 310,297 | $ | 299,075 | $ | 11,222 | 3.8 | % | ||||||||
Warranty |
124,675 | 102,376 | 22,299 | 21.8 | % | |||||||||||
Wholesale parts |
31,599 | 31,300 | 299 | 1.0 | % | |||||||||||
Internal, sublet and other |
184,657 | 167,834 | 16,823 | 10.0 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 651,228 | $ | 600,585 | $ | 50,643 | 8.4 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit as a % of revenue |
||||||||||||||||
Customer pay |
54.7 | % | 54.8 | % | (10 | ) bps | ||||||||||
Warranty |
55.5 | % | 54.7 | % | 80 | bps | ||||||||||
Wholesale parts |
17.7 | % | 17.2 | % | 50 | bps | ||||||||||
Internal, sublet and other |
50.5 | % | 50.0 | % | 50 | bps | ||||||||||
|
|
|
|
|
|
|||||||||||
Total |
48.8 | % | 48.1 | % | 70 | bps |
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Finance, Insurance and Other, Net (F&I)
Three Months Ended December 31, | Better / (Worse) | |||||||||||||||
2015 | 2014 | Change | % Change | |||||||||||||
(In thousands, except per unit data) | ||||||||||||||||
Reported: |
||||||||||||||||
Revenue |
$ | 83,796 | $ | 76,755 | $ | 7,041 | 9.2 | % | ||||||||
Gross profit per retail unit (excludes fleet) |
$ | 1,321 | $ | 1,255 | $ | 66 | 5.3 | % | ||||||||
Twelve Months Ended December 31, | Better / (Worse) | |||||||||||||||
2015 | 2014 | Change | % Change | |||||||||||||
(In thousands, except per unit data) | ||||||||||||||||
Reported: |
||||||||||||||||
Revenue |
$ | 326,588 | $ | 300,095 | $ | 26,493 | 8.8 | % | ||||||||
Gross profit per retail unit (excludes fleet) |
$ | 1,279 | $ | 1,220 | $ | 59 | 4.8 | % | ||||||||
Three Months Ended December 31, | Better / (Worse) | |||||||||||||||
2015 | 2014 | Change | % Change | |||||||||||||
(In thousands, except per unit data) | ||||||||||||||||
Same Store: |
||||||||||||||||
Revenue |
$ | 82,764 | $ | 75,480 | $ | 7,284 | 9.7 | % | ||||||||
Gross profit per retail unit (excludes fleet) |
$ | 1,330 | $ | 1,260 | $ | 70 | 5.6 | % | ||||||||
Twelve Months Ended December 31, | Better / (Worse) | |||||||||||||||
2015 | 2014 | Change | % Change | |||||||||||||
(In thousands, except per unit data) | ||||||||||||||||
Same Store: |
||||||||||||||||
Revenue |
$ | 318,476 | $ | 290,368 | $ | 28,108 | 9.7 | % | ||||||||
Gross profit per retail unit (excludes fleet) |
$ | 1,288 | $ | 1,227 | $ | 61 | 5.0 | % |
Sonic Automotive, Inc.
Results of Operations (Unaudited)
Selling, General and Administrative (SG&A) Expenses
Three Months Ended December 31, | Better / (Worse) | |||||||||||||||
2015 | 2014 | Change | % Change | |||||||||||||
(In thousands) | ||||||||||||||||
Reported: |
||||||||||||||||
Compensation |
$ | 169,510 | $ | 155,382 | $ | (14,128 | ) | (9.1 | %) | |||||||
Advertising |
15,470 | 15,409 | (61 | ) | (0.4 | %) | ||||||||||
Rent |
18,481 | 18,384 | (97 | ) | (0.5 | %) | ||||||||||
Other |
71,541 | 75,227 | 3,686 | 4.9 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 275,002 | $ | 264,402 | $ | (10,600 | ) | (4.0 | %) | |||||||
|
|
|
|
|
|
|
|
|||||||||
Total pre-tax adjustments |
2,323 | (1,282 | ) | (3,605 | ) | (281.2 | %) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted SG&A |
$ | 277,325 | $ | 263,120 | (14,205 | ) | (5.4 | %) | ||||||||
SG&A expenses as a % of gross profit |
||||||||||||||||
Compensation |
46.6 | % | 44.6 | % | (200 | ) bps | ||||||||||
Advertising |
4.3 | % | 4.4 | % | 10 | bps | ||||||||||
Rent |
5.1 | % | 5.3 | % | 20 | bps | ||||||||||
Other |
19.6 | % | 21.6 | % | 200 | bps | ||||||||||
|
|
|
|
|
|
|||||||||||
Total |
75.6 | % | 75.9 | % | 30 | bps | ||||||||||
Total pre-tax adjustments |
0.6 | % | (0.4 | %) | (100 | ) bps | ||||||||||
|
|
|
|
|
|
|||||||||||
Adjusted SG&A as a % of gross profit |
76.2 | % | 75.5 | % | (70 | ) bps | ||||||||||
Twelve Months Ended December 31, | Better / (Worse) | |||||||||||||||
2015 | 2014 | Change | % Change | |||||||||||||
(In thousands) | ||||||||||||||||
Reported: |
||||||||||||||||
Compensation |
$ | 666,668 | $ | 638,875 | $ | (27,793 | ) | (4.4 | %) | |||||||
Advertising |
61,630 | 57,437 | (4,193 | ) | (7.3 | %) | ||||||||||
Rent |
73,539 | 73,707 | 168 | 0.2 | % | |||||||||||
Other |
308,728 | 297,414 | (11,314 | ) | (3.8 | %) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 1,110,565 | $ | 1,067,433 | $ | (43,132 | ) | (4.0 | %) | |||||||
|
|
|
|
|
|
|
|
|||||||||
Total pre-tax adjustments |
(1,859 | ) | 5,673 | 7,532 | 132.8 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted SG&A |
$ | 1,108,706 | $ | 1,073,106 | (35,600 | ) | (3.3 | %) | ||||||||
SG&A expenses as a % of gross profit |
||||||||||||||||
Compensation |
47.1 | % | 46.8 | % | (30 | ) bps | ||||||||||
Advertising |
4.4 | % | 4.2 | % | (20 | ) bps | ||||||||||
Rent |
5.2 | % | 5.4 | % | 20 | bps | ||||||||||
Other |
21.8 | % | 21.7 | % | (10 | ) bps | ||||||||||
|
|
|
|
|
|
|||||||||||
Total |
78.5 | % | 78.1 | % | (40 | ) bps | ||||||||||
Total pre-tax adjustments |
(0.1 | %) | 0.5 | % | 60 | bps | ||||||||||
|
|
|
|
|
|
|||||||||||
Adjusted SG&A as a % of gross profit |
78.4 | % | 78.6 | % | 20 | bps |
Q4 and Full Year 2015 Earnings Review February 23, 2016 Exhibit 99.2
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 business, the economy and other future conditions. These statements can generally be identified by lead-in words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “foresee”, “may” ,”will” and other similar words. Statements that describe our Company’s objectives, plans or goals are also forward-looking statements. Examples of such forward-looking information we may be discussing in this presentation include, without limitation, anticipated 2016 industry new vehicle sales volume, the implementation of growth and operating strategies, including acquisitions of dealerships and properties, the development of open points and stand-alone pre-owned stores, the return of capital to shareholders , anticipated future success and impacts from the implementation of our strategic initiatives and earnings per share expectations. You are cautioned that these forward-looking statements are not guarantees of future performance, involve risks and uncertainties and actual results may differ materially from those projected in the forward-looking statements as a result of various factors. These risks and uncertainties include, among other things, (a) economic conditions in the markets in which we operate, (b) the success of our operational strategies, (c) our relationships with the automobile manufacturers, (d) new and pre-owned vehicle sales volume, and (e) earnings expectations for the year ending December 31, 2016. These risks and uncertainties, as well as additional factors that could affect our forward-looking statements, are described in our Form 10-K for the year ended December 31, 2014. These forward-looking statements, risks, uncertainties and additional factors speak only as of the date of this presentation. We undertake no obligation to update any such statements.
CONTENT STRATEGIC FOCUS FINANCIAL REVIEW OPERATIONS REVIEW SUMMARY & OUTLOOK
STRATEGIC FOCUS Growth EchoPark® One Sonic-One Experience Acquisitions & Open Points Own Our Properties Return Capital to Shareholders Share Repurchases Dividends
STRATEGIC FOCUS ONE SONIC-ONE EXPERIENCE (OSOE) Goals 1 Associate, 1 Price, 1 Hour Improve Transparency; Increase Trust Operational Efficiencies Grow Market Share Feed Fixed Operations Technology Being Introduced into Additional Markets (Charlotte was Pilot) CRM, Desking & Appraisal
STRATEGIC FOCUS EchoPark® Three Locations Open In Denver Thornton Hub Centennial Highlands Ranch Locations to Open in Denver Market in First Half of 2016 Dakota Ridge Stapleton Two Additional Denver Market Locations by End of 2016 Purchasing Property in Two Other Markets
STRATEGIC FOCUS ACQUISITIONS & OPEN POINTS Open Points Mercedes Benz in Dallas Market Operational in 2016 Audi in Pensacola Market Operational in 2016 Nissan in TN Market Operational in late 2016 / early 2017 Exploring Acquisition and Open Point Opportunities in Other Markets
STRATEGIC FOCUS OWN OUR PROPERTIES % of Properties Owned
EQUITY IN PROPERTY ($ in millions) Note: Calculated as net book value less mortgage balance. STRATEGIC FOCUS OWN OUR PROPERTIES
SHARE REPURCHASES Acquired 7.9% of 12/31/2015 OS in 2016 New Share Count = 46.0M Down from High of 53.2M (Dec 2012) STRATEGIC FOCUS RETURN CAPITAL TO SHAREHOLDERS (000's) (000's) (000's) Shares $/Share $ Availability Total 2015 Activity 1,519 $22.7 $34,483 $45,003.298999999999 Additional Authorization $,100,000 Q1 Activity 3,970 18.14 $18.140965491183881 $72,019.633000000002 $72,983.665999999997
OUTSTANDING SHARE COUNT AT YEAR END (in millions) Note – These amounts exclude the effect of share dilution from convertible notes and equity grants outstanding. STRATEGIC FOCUS RETURN CAPITAL TO SHAREHOLDERS
Q4 2015 FINANCIAL REVIEW
Q4 2015 FINANCIAL REVIEW FRANCHISED SEGMENT
FRANCHISED SEGMENT Q4 2015 RESULTS – Q4 2015 and Q4 2014 are adjusted – see appendix for reconciliation to GAAP amounts Note – Continuing operations includes results of sold stores after March 31, 2014. B/(W) than Q4 2014 (1) (amounts in millions, except per share data) Q4 2015 (1) $ % Revenue $2,452.2849057600197 $105.89419441003957 4.513067405944% Gross Profit $361.406302550031 $13.432342290021014 3.860157317514% SG&A as % of Gross 0.75376008280148254 -,190 bps Operating Profit $71.9378042849183 $-5.2003589355783042 -6.74161623568% Interest & Other $-17.790865309999997 $-0.38893763999999648 -2.235026184315% Pretax $54.146938974919998 $-5.5892965755764017 -9.35662671755% Diluted EPS $0.65 $-0.06 -8.5% Diluted EPS Keyed $0.65 $-0.06 -8.5%
Q4 2015 FINANCIAL REVIEW ECHOPARK® SEGMENT
NM – Not Meaningful ECHOPARK® SEGMENT Q4 2015 RESULTS B/(W) than Q4 2014 (amounts in millions, except per share, unit and per unit data) Q4 2015 $ % Revenue $18.350445560000001 $12.912768509999999 NM Gross Profit $2.4416698399999999 $1.9513660800000001 NM Operating Profit $-3.2612278999999904 $3.7459220800000099 NM Interest & Other $-0.32399038000000002 $-0.25761238000000003 NM Pretax $-3.5852182799999901 $3.4883097000000105 0.49314991187749713 Diluted EPS $-0.04 $0.04 0.5 Retail Units 764 552 NM GPU $1,233.391099476465 $1,817.374911834439 NM F&I ($/unit) $1,046.6443586387436 $141.90723599723424 0.15684913600418626 Diluted EPS Keyed $-0.04 $0.04 0.5
Q4 2015 FINANCIAL REVIEW TOTAL ENTERPRISE
CONSOLIDATED Q4 2015 RESULTS – Q4 2015 and Q4 2014 are adjusted – see appendix for reconciliation to GAAP amounts Note – Continuing operations includes results of sold stores after March 31, 2014. B/(W) than Q4 2014 (1) (amounts in millions, except per share data) Q4 2015 (1) $ % Revenue $2,470.6353513200202 $118.80696292004036 5.516850424137% Gross Profit $363.84797239003098 $15.383708370018983 4.414716215817% SG&A as % of Gross 0.76220077015519572 -70 bps Operating Profit $68.676576384922598 $-1.4544368555716209 -2.738854158346% Interest & Other $-18.114855689999999 $-0.64655001999999873 -3.701274938819% Continuing Ops: Profit (after tax) $30.856128284900798 $-1.6884585555934026 -5.188139471147% Diluted EPS $0.61 $-0.02 -3.2% Diluted EPS Keyed $0.61 $-0.02 -3.2%
Q4 2015 REVENUE & GROSS PROFIT Strong Growth in Used, Fixed and F&I Offset by New Gross Compression B/(W) than Q4 2014 (amounts in millions, except per share data) Q4 2015 $ % New Retail Revenue $1,378 $40 3.0% Used Retail Revenue $607 $44 7.9% Fixed Operations Revenue $345 $22 6.9% F&I Revenue $84 $7 9.2% Total Revenue $2,471 $119 5.1% New Retail Gross $74 ($4) (5.6%) Used Retail Gross $39 $1 2.5% Fixed Operations Gross $169 $13 8.2% F&I Gross $84 $7 9.2% Total Gross $364 $15 4.4%
Q4 2015 ADJUSTED SG&A TO GROSS 76.2% 75.5% – Q4 2015 and Q4 2014 are adjusted – see appendix for reconciliation to GAAP amounts
Q4 2015 ADJUSTED SG&A TO GROSS – Q4 2015 and Q4 2014 are adjusted – see appendix for reconciliation to GAAP amounts
Q4 2015 INTEREST EXPENSE Floorplan Increase Due to Higher Balances B/(W) than Q4 2014 (amounts in millions, except per share data) Q4 2015 $ % Floor Plan Interest Expense $6 ($1) (20.4%) Interest Expense, Other $12 $0 2.7% Total Interest Expense $18 ($1) (3.7%)
FULL YEAR 2015 FINANCIAL REVIEW
FULL YEAR 2015 FINANCIAL REVIEW FRANCHISED SEGMENT
FRANCHISED SEGMENT FY 2015 RESULTS – 2015 and 2014 are adjusted – see appendix for reconciliation to GAAP amounts B/(W) than FY 2014 (1) (amounts in millions, except per share data) FY 2015 (1) $ % Revenue $9,547 $356 3.9% Gross Profit $1,405 $39 2.9% SG&A as % of Gross 77.4% 0 bps Operating Profit $252 $2 0.8% Interest & Other ($71) $1 1.0% Pretax $181 $3 1.6% Diluted EPS $2.16 $0.08 3.8%
FULL YEAR 2015 FINANCIAL REVIEW ECHOPARK® SEGMENT
NM – Not meaningful ECHOPARK® SEGMENT FY 2015 RESULTS – 2015 and 2014 are adjusted – see appendix for reconciliation to GAAP amounts B/(W) than FY 2014 (1) (amounts in millions, except per share, unit and per unit data) FY 2015 (1) $ % Revenue $77 $72 NM Gross Profit $10 $9 NM Operating Profit ($15) $0 2.7% Interest & Other ($1) ($1) NM Pretax ($16) ($1) (3.7%) Diluted EPS ($0.19) ($0.01) (5.6%) Retail Units 3,225 3,013 NM GPU $1,341 $1,926 NM F&I ($/unit) $943 $38 4.2%
FULL YEAR 2015 FINANCIAL REVIEW TOTAL ENTERPRISE
CONSOLIDATED FY 2015 RESULTS – 2015 and 2014 are adjusted – see appendix for reconciliation to GAAP amounts B/(W) than FY 2014 (1) (amounts in millions, except per share data) FY 2015 (1) $ % Revenue $9,624 $427 4.6% Gross Profit $1,415 $49 3.6% SG&A as % of Gross 78.4% 20 bps Operating Profit $237 $3 1.1% Interest & Other ($72) ($0) (0.3%) Continuing Ops: Profit (after tax) $100 $0 0.1% Diluted EPS $1.97 $0.07 3.7%
FY 2015 REVENUE & GROSS PROFIT Strong Growth in Used, Fixed and F&I Offset by New Gross Compression B/(W) than FY 2014 (amounts in millions, except per share data) FY 2015 $ % New Retail Revenue $5,206 $160 3.2% Used Retail Revenue $2,512 $202 8.7% Fixed Operations Revenue $1,365 $68 5.3% F&I Revenue $327 $26 8.8% Total Revenue $9,624 $427 4.6% New Retail Gross $268 ($19) (6.6%) Used Retail Gross $162 $5 3.1% Fixed Operations Gross $665 $42 6.7% F&I Gross $327 $26 8.8% Total Gross $1,415 $49 3.6%
FY 2015 SG&A TO GROSS 78.4% 78.6% – 2015 and 2014 are adjusted – see appendix for reconciliation to GAAP amounts
FY 2015 SG&A TO GROSS – 2015 and 2014 are adjusted – see appendix for reconciliation to GAAP amounts
FY 2015 INTEREST EXPENSE Floorplan Increase Due to Higher Balances B/(W) than FY 2014 (amounts in millions, except per share data) FY 2015 $ % Floor Plan Interest Expense $21 ($3) (13.5%) Interest Expense, Other $51 $2 4.3% Total Interest Expense $72 ($0) (0.4%)
($’s in millions) * – See appendix for reconciliation of Adjusted EBITDA to associated GAAP amounts. ADJUSTED EBITDA TREND EP Investment of $15M EP Investment of $13M Store Count
FY 2015 CAPEX (amounts in millions) FY 2015 Estimated 2016 Real Estate & Facility Related 138.1 $ 216.1 $ All Other Cap Ex 34.3 36.8 Subtotal 172.4 $ 252.9 $ Less: Mortgage Funding (69.0) (168.4) Total Cash Used – Cap Ex 103.4 $ 84.5 $
DEBT COVENANTS Compliant with all Covenants Covenant Actual Q4 2015 Liquidity Ratio >= 1.05 1.19 Fixed Charge Coverage Ratio >= 1.20 1.78 Total Lease Adjusted Leverage Ratio <= 5.50 4.08
OPERATIONS REVIEW
NEW VEHICLE RETAIL SAME STORE Q4 volume record for current store group Q4 2015 Q4 2014 B/(W) Retail Volume 35,058 34,321 2.1% Selling Price 39,059 $ 38,475 $ 1.5% Gross Margin % 5.4% 5.9% (50) bps GPU 2,112 $ 2,270 $ (157) $ Gross Profit 74.1 $ 77.9 $ (4.9%) SAAR (mllion) 17.9 16.8 6.8%
NEW VEHICLE SAAR 4th QTR Up 6.8% Full Year 2015 – 17.4M Full Year 2014 – 16.4M Full Year 2013 – 15.4M
NEW VEHICLE NEW VEHICLE – GROSS & UNIT TREND Continuing Operations
NEW VEHICLE NEW VEHICLE – GROSS PER UNIT Continuing Operations Decline primarily relates to BMW, MB & Audi
VEHICLE DAYS SUPPLY
USED VEHICLE RETAIL SAME STORE Q4 volume record for ANY store group Q4 2015 Q4 2014 B/(W) Retail Volume 27,182 25,597 6.2% GPU 1,380 $ 1,446 $ (65) $ Used to New 0.78 to 1.00 0.75 to 1.00 0.03 Vehicles/Store/Mth (97 stores) 94 89 5
PRE-OWNED * - Used Related Gross = (Used Gross + F&I + Reconditioning) ($’s in millions) USED VEHICLE – GROSS TREND Continuing Operations
Total Gross Up 9.6% Higher PUR accounted for $4.4M of the overall $7.3M increase in F&I Gross Gross (millions) $ 75 $ 83 F&I SAME STORE
F&I F&I – GROSS & PUR TREND Continuing Operations
FIXED OPS SAME STORE Q4 Fixed Ops gross record Q4 2015 Q4 2014 B/(W) Revenue 341 $ 315 $ 8.1% Gross Profit 167 $ 153 $ 9.6%
FIXED OPS SAME STORE – CUSTOMER PAY We continue to perform better in CP – the moves we have made in our shops and the increased level of technicians is paying off - 1 Day
FIXED OPERATIONS ($’s in millions) FIXED OPERATIONS – GROSS TREND Continuing Operations
Continued to grow the top-line in each revenue category achieving record results New vehicle GPU pressure experienced across the public dealership group Fixed operations and F&I continued to exhibit opportunities for growth Significant milestones / achievements in 2015 Begin scaling of EchoPark® OSOE pilot – understanding opportunities and challenges Gained ground on owning properties – now at 39% Returned $40.0 million to shareholders through share repurchases and dividends (returned an additional $73M so far in Q1 2016) SUMMARY
2016 PLAN 2016 Plan Expect new car industry volume to be between 17.3M to 17.6M units We will continue to increase pre-owned volume in the mid-single digits Expect fixed operations to grow at mid-single digits Costs related to EchoPark®, OSOE to continue 2016 Continued Ops EPS Guidance: New Car Franchise Business $2.28 - $2.40 Effect of EchoPark® ($0.21) – ($0.23) Total Sonic $2.07 - $2.17
APPENDIX
NON-GAAP RECONCILIATIONS (amounts in thousands) 2009 2010 2011 2012 2013 2014 2015 Net Income 31,548 $ 89,929 $ 76,254 $ 89,101 $ 81,618 $ 97,217 $ 86,311 $ Non-Floorplan Interest 67,735 68,604 63,576 58,453 55,356 52,269 49,524 Depreciation & Amort 57,036 45,827 51,164 52,616 58,139 62,161 72,130 Income Taxes (53,900) (19,745) 46,907 47,648 43,386 62,346 55,962 Stock Comp 1,931 2,814 3,698 5,160 7,208 7,675 9,814 Lease Exit 33,013 4,266 4,384 4,286 2,915 302 1,848 Impairment 30,038 249 1,151 950 9,872 6,594 17,955 Loss (Gain) on Debt Exting 6,745 7,665 1,107 19,713 28,238 - - Loss (Gain) on Dealership Disposal 102 (2,615) 386 (10,343) 457 (11,279) (2,748) Adjusted EBITDA 174,248 $ 196,994 $ 248,627 $ 267,584 $ 287,189 $ 277,285 $ 290,796 $
NON-GAAP RECONCILIATIONS Consolidated Franchised Dealerships EchoPark® Three Months Ended Three Months Ended Three Months Ended December 31, December 31, December 31, 2015 2014 2015 2014 2015 2014 (In millions) SG&A Reconciliation: As Reported . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .. 275.0 $ 264.4 $ 270.1 $ 257.2 $ 4.9 $ 7.2 $ Pre-tax Adjustments: Gain on disposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3 0.2 2.3 0.2 - - Storm damage and other . . . . . . . . . . .. . . . . . . . . . . . - (1.5) - (1.5) - - Total pre-tax adjustments . . . . . . . . . . . . . . . . . . . 2.3 (1.3) 2.3 (1.3) - - Adjusted SG&A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277.3 $ 263.1 $ 272.4 $ 255.9 $ 4.9 $ 7.2 $ SG&A as % of Gross Reconciliation: As Reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75.6% 75.9% 74.7% 73.9% NM NM Pre-tax Adjustments: Gain on disposal . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 0.6% 0.0% 0.7% 0.0% NM NM Storm damage and other . . . . . . . . . . . . . . . . . . . . . . . 0.0% (0.4%) 0.0% (0.4%) NM NM Total pre-tax adjustments . . . . . . . . . . . . . . . . . . . . . 0.6% (0.4%) 0.7% (0.4%) NM NM Adjusted SG&A as % of Gross . . . . . . . . . . . . . . . . . . . . . . 76.2% 75.5% 75.4% 73.5% NM NM NM = Not meaningful This release contains certain non-GAAP financial measures (the "Adjusted" amounts) as defined under SEC rules, such as, but not limited to, adjusted income from continuing operations and related earnings per share data. The Company has reconciled these measures to the most directly comparable GAAP measures (the "Reported" amounts) in the release. The Company believes that these non-GAAP financial measures improve the transparency of the Company’s disclosure by providing period-to-period comparability of the Company’s results from operations.
NON-GAAP RECONCILIATIONS Consolidated Franchised Dealerships EchoPark® Three Months Ended Three Months Ended Three Months Ended December 31, December 31, December 31, 2015 2014 2015 2014 2015 2014 (In millions) Operating Profit Reconciliation: As Reported . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . 69.7 $ 62.5 $ 73.0 $ 69.5 $ (3.3) $ (7.0) $ Pre-tax Adjustments: SG&A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.3) 1.3 (2.3) 1.3 - - Impairment charges . . .. . . . . . . . . . . . . . . . . . . . . . . . 1.3 6.4 1.3 6.4 - - Total pre-tax adjustments . . . . . . . . . . . . . . . . . . . (1.0) 7.7 (1.0) 7.7 - - Adjusted Operating Profit . . . . . . . . . . . . . . . . . . . . . . . . 68.7 $ 70.2 $ 72.0 $ 77.2 $ (3.3) $ (7.0) $ Pre-tax Profit from Continuing Operations Reconciliation: As Reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51.6 $ 45.0 $ 55.1 $ 52.0 $ (3.5) $ (7.0) $ Pre-tax Adjustments: SG&A . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.3) 1.3 (2.3) 1.3 - - Impairment charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3 6.4 1.3 6.4 - - Total pre-tax adjustments . . . . . . . . . . . . . . . . . . . .. . (1.0) 7.7 (1.0) 7.7 - - Adjusted Pre-tax Profit from Continuing Operations . . . . . . 50.6 $ 52.7 $ 54.1 $ 59.7 $ (3.5) $ (7.0) $ Profit from Continuing Operations (after-tax) Reconciliation: As Reported . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . 31.5 $ 27.0 $ After-tax Adjustments: SG&A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. (1.4) 0.7 Impairment charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.8 3.9 Permanent tax differences from disposals . . . . . . . . . . . - 0.9 Total after-tax adjustments . . . . . . . . . . . . . . . . . . . . (0.6) 5.5 Adjusted Profit from Continuing Operations (after-tax) . . . . 30.9 $ 32.5 $
NON-GAAP RECONCILIATIONS Consolidated Franchised Dealerships EchoPark® Twelve Months Ended Twelve Months Ended Twelve Months Ended December 31, December 31, December 31, 2015 2014 2015 2014 2015 2014 (In millions) SG&A Reconciliation: As Reported . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . 1,110.6 $ 1,067.4 $ 1,088.7 $ 1,051.5 $ 21.9 $ 15.9 $ Pre-tax Adjustments: Gain on disposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3 10.7 3.3 10.7 - - Storm damage, severance and other . . . . . . . . . . . . . . . (5.2) (5.0) (5.2) (5.0) - - Total pre-tax adjustments . . . . . . . . . . . . . . . . . . . . . (1.9) 5.7 (1.9) 5.7 - - Adjusted SG&A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . 1,108.7 $ 1,073.1 $ 1,086.8 $ 1,057.2 $ 21.9 $ 15.9 $ SG&A as % of Gross Reconciliation: As Reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78.5% 78.1% 77.5% 77.0% NM NM Pre-tax Adjustments: Gain on disposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2% 0.8% 0.2% 0.8% NM NM Storm damage, severance and other . . . . . . . . . . . . . . . . (0.3%) (0.3%) (0.3%) (0.4%) NM NM Total pre-tax adjustments . . . . . . . . . . . . .. . . . . . . . . .. (0.1%) 0.5% (0.1%) 0.4% NM NM Adjusted SG&A as % of Gross . . . . . . . . . . . . . . . . . . . . . . . . 78.4% 78.6% 77.4% 77.4% NM NM NM = Not meaningful
NON-GAAP RECONCILIATIONS Consolidated Franchised Dealerships EchoPark® Twelve Months Ended Twelve Months Ended Twelve Months Ended December 31, December 31, December 31, 2015 2014 2015 2014 2015 2014 (In millions) Operating Profit Reconciliation: As Reported . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . 217.3 $ 233.6 $ 233.9 $ 249.4 $ (16.6) $ (15.8) $ Pre-tax Adjustments: SG&A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1.9 (5.6) 1.9 (5.6) - - Impairment charges . . . . . . . . .. . . . . . . . . . . . . 17.9 6.5 16.5 6.3 1.4 0.2 Total pre-tax adjustments . . . . . . . . . . . . . . 19.8 0.9 18.4 0.7 1.4 0.2 Adjusted Operating Profit . . . . . . . . . . . . . . . . . . . 237.1 $ 234.5 $ 252.3 $ 250.1 $ (15.2) $ (15.6) $ Pre-tax Profit from Continuing Operations Reconciliation: As Reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145.2 $ 161.7 $ 162.9 $ 177.6 $ (17.7) $ (15.9) $ Pre-tax Adjustments: SG&A . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . 1.9 (5.6) 1.9 (5.6) - - Impairment charges . . . . . . . . . . . . . . . . . . . . . . . . 17.9 6.5 16.5 6.3 1.4 0.2 Total pre-tax adjustments . . . . . . . . . . . . . . . . . 19.8 0.9 18.4 0.7 1.4 0.2 Adjusted Pre-tax Profit from Continuing Operations . . . 165.0 $ 162.6 $ 181.3 $ 178.3 $ (16.3) $ (15.7) $ Profit from Continuing Operations (after-tax) Reconciliation: As Reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88.1 $ 98.6 $ After-tax Adjustments: SG&A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 (4.0) Impairment charges . . . . . . . . . . . . . . . . . . . . . . . . . . 10.9 4.5 Permanent tax differences from disposals . . . . .. . . . - 0.9 Total after-tax adjustments . . . . . . . . . . . . . . . . . . 12.1 1.4 Adjusted Profit from Continuing Operations (after-tax) . . . 100.2 $ 100.0 $
NON-GAAP RECONCILIATIONS Three Months Ended December 31, 2015 Income (Loss) Income (Loss) From Continuing From Discontinued Operations Operations Net Income (Loss) Weighted Per Per Per Average Share Share Share Shares Amount Amount Amount Amount Amount Amount (In thousands, except per share amounts) Reported: Earnings (loss) and shares . . . . . . . . . . . . . 49,872 31,507 $ (449) $ 31,058 $ Effect of participating securities: Non-vested restricted stock . . . . . . . . . . . . (13) - (13) Basic earnings (loss) and shares . . . . . . . . . 49,872 31,494 $ 0.63 $ (449) $ (0.01) $ 31,045 $ 0.62 $ Effect of dilutive securities: Stock compensation plans . . . . . . . . . . . . . . 406 Diluted earnings (loss) and shares (1). . . . . . 50,278 31,494 $ 0.63 $ (449) $ (0.01) $ 31,045 $ 0.62 $ Adjustments (net of tax): Gain on disposal. . . . . . . . . . . . . . . . . . . . . . . . (1,417) $ (0.03) $ - $ - $ (1,417) $ (0.03) $ Impairment charges. . . . . . . . . . . . . . . . . . . . . . 766 0.01 - - 766 0.01 Total adjustments . . . . . . . . . . . . . . . . . . . . . . (651) $ (0.02) $ - $ - $ (651) $ (0.02) $ Adjusted: Earnings (loss) and Diluted earnings (loss) per share (1) . . . . . . . . . 30,856 $ 0.61 $ (449) $ (0.01) $ 30,407 $ 0.60 $ (1) Net loss attributable to EchoPark® operations was $0.04 per fully diluted share in the three months ended December 31, 2015.
NON-GAAP RECONCILIATIONS Three Months Ended December 31, 2014 Income (Loss) Income (Loss) From Continuing From Discontinued Operations Operations Net Income (Loss) Weighted Per Per Per Average Share Share Share Shares Amount Amount Amount Amount Amount Amount (In thousands, except per share amounts) Reported: Earnings (loss) and shares . . . . . . . . . . . . . . 51,272 26,957 $ (831) $ 26,126 $ Effect of participating securities: Non-vested restricted stock and stock units . . . . . . . . . . . . . . . . . . . . . (86) - (86) Basic earnings (loss) and shares . . . . . . . . . . 51,272 26,871 $ 0.52 $ (831) $ (0.01) $ 26,040 $ 0.51 $ Effect of dilutive securities: Stock compensation plans . . . . . . . . . . . . . . 562 Diluted earnings (loss) and shares. . . .. . . . . . . 51,834 26,871 $ 0.52 $ (831) $ (0.02) $ 26,040 $ 0.50 $ Adjustments (net of tax): Gain on disposal. . . . . . . . . . . . . . . . . . . . . . . . (157) $ - $ - $ - $ (157) $ - $ Impairment charges. . . . . . . . . . . . . . . . . . . . .. . 3,943 0.08 - - 3,943 0.08 Storm damage and other. . . . . . . . . . . . . . . . . . 949 0.01 - - 949 0.01 Permanent tax differences from disposals . . . . . 853 0.02 - - 853 0.02 Total adjustments . . . . . . . . . . . . . . . . . . . . . . . 5,588 $ 0.11 $ - $ - $ 5,588 $ 0.11 $ Adjusted: Earnings (loss) and Diluted earnings (loss) per share (2) . . . . . . . . . . 32,545 $ 0.63 $ (831) $ (0.02) $ 31,714 $ 0.61 $ (2) Net loss attributable to EchoPark® operations was $0.08 per fully diluted share in the three months ended December 31, 2014.
NON-GAAP RECONCILIATIONS Twelve Months Ended December 31, 2015 Income (Loss) Income (Loss) From Continuing From Discontinued Operations Operations Net Income (Loss) Weighted Per Per Per Average Share Share Share Shares Amount Amount Amount Amount Amount Amount (In thousands, except per share amounts) Reported: Earnings (loss) and shares . . . . . . . . . . . . . . . 50,489 88,091 $ (1,780) $ 86,311 $ Effect of participating securities: Non-vested restricted stock and stock units . . . . . . . . . . . . . . . . . . . . . .. (36) - (36) Basic earnings (loss) and shares . . . . . . . . . . 50,489 88,055 $ 1.74 $ (1,780) $ (0.03) $ 86,275 $ 1.71 $ Effect of dilutive securities: Stock compensation plans . . . . . . . . . . . . . . . 394 Diluted earnings (loss) and shares. . . . . . . . . . 50,883 88,055 $ 1.73 $ (1,780) $ (0.03) $ 86,275 $ 1.70 $ Adjustments (net of tax): Gain on disposal. . . . . . . . . . . . . . . . . . . . . . . . . (2,000) $ (0.04) $ - $ - $ (2,000) $ (0.04) $ Impairment charges. . . . . .. . . . . . . . . . . . . . . . . . 10,930 0.22 - - 10,930 0.22 Storm damage and other. . . . . . . . . . . . . . . . . . . 3,134 0.06 - - 3,134 0.06 Effect of rounding . . . . . . . . . . . . . . . . . . . . . . . . - - - (0.01) - (0.01) Total adjustments . . . . . . . . . . . . . . . . . . . . . . . 12,064 $ 0.24 $ - $ (0.01) $ 12,064 $ 0.23 $ Adjusted: Earnings (loss) and Diluted earnings (loss) per share (3) . . . . . . . . . . 100,155 $ 1.97 $ (1,780) $ (0.04) $ 98,375 $ 1.93 $ (3) Net loss attributable to EchoPark® operations was $0.19 per fully diluted share in the twelve months ended December 31, 2015.
NON-GAAP RECONCILIATIONS Twelve Months Ended December 31, 2014 Income (Loss) Income (Loss) From Continuing From Discontinued Operations Operations Net Income (Loss) Weighted Per Per Per Average Share Share Share Shares Amount Amount Amount Amount Amount Amount (In thousands, except per share amounts) Reported: Earnings (loss) and shares . . . . . . . . . . . . . . 52,065 98,559 $ (1,342) $ 97,217 $ Effect of participating securities: Non-vested restricted stock and stock units . . . . . . . . . . . . . . . . . . . . . (311) - (311) Basic earnings (loss) and shares . . . . . . . . . 52,065 98,248 $ 1.89 $ (1,342) $ (0.03) $ 96,906 $ 1.86 $ Effect of dilutive securities: Stock compensation plans . . . . . . . . . . . . . 498 Diluted earnings (loss) and shares . . . .. . . . . 52,563 98,248 $ 1.87 $ (1,342) $ (0.03) $ 96,906 $ 1.84 $ Adjustments (net of tax): Gain on disposal. . . . . . . . . . . . . . . . . . . . . . . (7,273) $ (0.14) $ - $ - $ (7,273) $ (0.14) $ Impairment charges. . . . . . . . . . . . . . . .. . . . . . 4,459 0.08 - - 4,459 0.08 Storm damage and other. . . . . . . . . . . . . . . . . . 3,434 0.07 - - 3,434 0.07 Permanent tax differences from disposals . . . . . . 853 0.02 - - 853 0.02 Lease exit adjustments . . . . . . . . . . . . . . . .. . . . . - - (844) (0.01) (844) (0.01) Total adjustments . . . . . . . . . . . . . . . . . . . . . . . 1,473 $ 0.03 $ (844) $ (0.01) $ 629 $ 0.02 $ Adjusted: Earnings (loss) and Diluted earnings (loss) per share (4) . . . . . . . . . . 100,032 $ 1.90 $ (2,186) $ (0.04) $ 97,846 $ 1.86 $ (4) Net loss attributable to EchoPark® operations was $0.18 per fully diluted share in the twelve months ended December 31, 2014.
NON-GAAP RECONCILIATIONS Three Months Ended December 31, 2015 Three Months Ended December 31, 2014 Continuing Operations Continuing Operations Franchised Dealerships EchoPark® Consolidated Franchised Dealerships EchoPark® Consolidated EPS Reconciliation: Reported diluted earnings (loss) and shares . . . . . 0.67 $ (0.04) $ 0.63 $ 0.60 $ (0.08) $ 0.52 $ Adjustments: Gain on disposal . . . . . . . . . . . . . . . . . . . . . . (0.03) - (0.03) - - - Storm damage and other . . . . . . . . . . . . . . . - - - 0.01 - 0.01 Impairment charges . . . . . . . . . . . . . . . . . . . 0.01 - 0.01 0.08 - 0.08 Permanent tax difference from disposals . . . . - - - 0.02 - 0.02 Adjusted diluted earnings (loss) and shares. . . . . 0.65 $ (0.04) $ 0.61 $ 0.71 $ (0.08) $ 0.63 $ Twelve Months Ended December 31, 2015 Twelve Months Ended December 31, 2014 Continuing Operations Continuing Operations Franchised Dealerships EchoPark® Consolidated Franchised Dealerships EchoPark® Consolidated EPS Reconciliation: Reported diluted earnings (loss) and shares . . . . . . . 1.94 $ (0.21) $ 1.73 $ 2.05 $ (0.18) $ 1.87 $ Adjustments: Gain on disposal . . . . . . . . . . . . . . . . . . . . . . . . . (0.04) - (0.04) (0.14) - (0.14) Storm damage and other . . . . . . . . . . . . . . . . . . 0.06 - 0.06 0.07 - 0.07 Impairment charges . . . . . . . . . . . . . . . . . . . . . . 0.20 0.02 0.22 0.08 - 0.08 Permanent tax difference from disposals . . . . . . - - - 0.02 - 0.02 Adjusted diluted earnings (loss) and shares. . . . . . . 2.16 $ (0.19) $ 1.97 $ 2.08 $ (0.18) $ 1.90 $
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