Sonic Reports Record Revenues

By Staff Writer July 28, 2022

Sonic Automotive, one of the nation’s largest automotive retailers, reported all-time record revenues in for the second quarter and six months ended June 30.

Revenues were $3.7 billion, up 9% year-over-year, with an all-time record quarterly gross profit of $588.8 million, up 15% year-over-year.

Reported net income from continuing operations of $94.8 million ($2.34 per diluted share).

Excluding one-time charges, adjusted net income from continuing operations is $99.2 million ($2.45 per diluted share).

The company reported selling, general and administrative expenses as a percentage of gross profit of 68.4% (60.7% on a Franchised Dealerships Segment basis, an increase of 260 basis points year-over-year).

Excluding one-time charges, adjusted SG&A expenses as a percentage of gross profit were 67.7% (59.9% on a Franchised Dealerships Segment basis, an increase of 180 basis points year-over-year)

The company also reported all-time record quarterly total Finance & Insurance gross profit per retail unit of $2,503, up 13% year-over-year, along with all-time record quarterly EchoPark revenues of $665.6 million, up 12% year-over-year.

During the second quarter of 2022, Sonic repurchased approximately 1.4 million shares of its Class A Common Stock for an aggregate purchase price of approximately $59.4 million.

Sonic’s Board of Directors increased the company’s share repurchase authorization by $500.0 million, to a total of $633.1 million remaining authorization.

“Despite persistent industrywide headwinds that contributed to lower new vehicle sales volume as a result of ongoing supply chain disruptions and inventory constraints, we continued to see strong new vehicle pricing and consumer demand during the second quarter,” said CEO David Smith. “Sonic achieved another quarter of record revenues and solid earnings as a result of the continued dedication of our Sonic and EchoPark teams and our strong relationships with our manufacturer and vendor partners.”

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Last modified on Friday, 05 August 2022 12:44