Q2 2024 Sonic Automotive Inc Earnings Call Transcript
Key Points
- EchoPark segment achieved record second-quarter adjusted EBITDA of $7.2 million, demonstrating strong performance.
- Sonic Automotive Inc (SAH) reported a 2% increase in same-store fixed-ops gross profit despite operational disruptions.
- The company increased its technician headcount by a net 131 techs, positioning well to achieve its goal of 300 new technicians in 2024.
- EchoPark segment retail unit sales volume was up 23% on a same-store basis in the second quarter.
- Sonic Automotive Inc (SAH) maintained a conservative balance sheet with $885 million in available liquidity, including $467 million in cash and floor plan deposits.
- The CDK software outage negatively impacted second-quarter GAAP income before taxes by approximately $30 million.
- Second-quarter EPS was $1.18 per share on a reported basis, a 20% decrease year over year due to the CDK outage.
- Elevated used retail prices remain a challenge for consumers, contributing to affordability concerns amid the current interest rate environment.
- New vehicle gross profit per unit is expected to decline throughout 2024, exiting the fourth quarter in the low $3,000 range.
- EchoPark segment revenues were down 14% from the prior year, despite improvements in gross profit.
Good morning and welcome to the Sonic Automotive's second-quarter 2024 earnings conference call. This conference call is being recorded today, Monday, August 5, 2024. 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 time, I would like to refer to the Safe Harbor statement under the Private Securities 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 in the
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