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Sonic Automotive Inc (SAH) Q4 2024 Earnings Call Highlights: Record Revenue and Strategic ...

In This Article:

  • 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.

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.