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• GAAP EPS: $1.67 per share.

• Adjusted EPS: $1.51 per share, a 7% decrease year over year.

• Total Revenue: All-time quarterly record, up 9% year over year.

• Consolidated Gross Profit: Increased 6% year over year.

• Consolidated Adjusted EBITDA: Increased 5% year over year.

• Franchise Dealership Revenue: $3.4 billion, up 12% year over year.

• New Retail Volume: Increased 13% year over year.

• Used Retail Volume: Increased 5% year over year.

• Fixed Operations Revenue: Increased 10% year over year.

• New Vehicle Day Supply: Decreased to 46 days from 57 days in the previous quarter.

• Same Store New Vehicle GPU: $3,241.

• Used Inventory Day Supply: 31 days.

• Used GPU: $1,396 per unit on a same store basis.

• FNI GPU: $2,427, up 4% sequentially and year over year.

• Same Store Fixed Operations Gross Profit: Increased 12% year over year.

• Echo Park Adjusted EBITDA: $4.2 million, below guidance.

• Echo Park Revenue: $506 million, down 9% year over year.

• Echo Park Gross Profit: $49 million, up 14% year over year.

• Echo Park Retail Unit Sales Volume: Approximately 16,700 units, down 5% year over year.

• Echo Park Gross Profit Per Unit: $3,004, up $606 year over year.

• Power Sports Revenue: $30.6 million.

• Power Sports Gross Profit: $7.5 million.

• Power Sports Adjusted EBITDA Loss: $1 million.

• Available Liquidity: $862 million, excluding unencumbered real estate.

• Cash and Floor Plan Deposits: $384 million.

• Quarterly Cash Dividend: $0.35 per share.

• Warning! GuruFocus has detected 6 Warning Sign with SAH.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Sonic Automotive Inc (NYSE:SAH) achieved all-time record quarterly franchise revenues of $3.4 billion, up 12% year over year.

• The company reported a 13% increase in new retail volume and a 5% increase in used retail volume.

• Echo Park segment achieved profitability on a pre-tax basis in 2024, with adjusted EBITDA of $27.6 million, up from a loss of $83 million in 2023.

• Sonic Automotive Inc (NYSE:SAH) successfully added 335 net technicians in 2024, exceeding their goal and setting the stage for strong fixed operations growth in 2025.

• The company announced a quarterly cash dividend of $0.35 per share, reflecting confidence in its financial position.

Negative Points

• Adjusted EPS for the fourth quarter was $1.51 per share, a 7% decrease year over year.

• Echo Park's fourth quarter adjusted EBITDA was $4.2 million, below the previous guidance of $7 million to $8 million.

• Used vehicle supply constraints and consumer affordability remain challenges, impacting the used vehicle segment.

• The company experienced a $200 sequential decline in used GPU at Echo Park due to inventory management issues.

• Sonic Automotive Inc (NYSE:SAH) faces potential headwinds from electric vehicle inventory management, impacting new GPU by approximately $400.