Q3 2024 Sonic Automotive Inc Earnings Call Transcript
Key Points
- EchoPark segment achieved all-time record quarterly gross profit, segment income, and adjusted EBITDA.
- Sonic Automotive Inc (SAH) reported a 17% increase in the quarterly cash dividend to $0.35 per share.
- The company maintained a strong balance sheet with $834 million in available liquidity.
- Parts and service operations saw an 8% increase in same-store fixed ops gross profit.
- Sonic Automotive Inc (SAH) successfully increased technician headcount, contributing to additional fixed ops gross profit.
- Adjusted EPS decreased by 38% year over year, primarily due to normalization of new vehicle GPU and CDK outage effects.
- The CDK outage negatively impacted third-quarter GAAP income before taxes by approximately $17.2 million.
- New vehicle GPU declined due to larger headwinds from electric vehicle sales and stop-sale orders on high-margin models.
- Elevated used retail prices remain a challenge for consumers, contributing to affordability concerns.
- EchoPark segment retail unit sales volume decreased by 7% year over year.
Good morning, and welcome to the Sonic Automotive third-quarter 2024 earnings conference call. This conference call is being recorded today, Thursday, October 24, 2024. The presentation materials, which accompany management's discussion on the conference call, can be accessed at the company's website at ir.sonicautomotive.com.
At this time, I would like to refer to the Safe Harbor statement under the Private Securities and Litigation Reform Act of 1995. During this conference call, management may discuss financial projections, information or expectations about the company's products or market or otherwise make statements about the future. Such statements are forward-looking and subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These risks and uncertainties are detailed in the company's filings with the Securities and Exchange Commission.
In addition, management may discuss certain non-GAAP financial measures as defined by the Securities and Exchange Commission. Please refer to the non-GAAP reconciliation tables
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