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Jun 30, 2024
Sonic Automotive Q2 2024 Earnings Report
Reported financial results for the second quarter of 2024, with EchoPark achieving record adjusted EBITDA and the CDK Global software outage impacting GAAP income.
Key Takeaways
Sonic Automotive reported Q2 2024 financial results with total revenues of $3.5 billion, a 5% decrease year-over-year. Net income was $41.2 million, a 76% increase year-over-year. The results were impacted by the CDK Global software outage, which is estimated to have reduced GAAP income before taxes by approximately $30.0 million.
Total revenues decreased by 5% year-over-year to $3.5 billion, while total gross profit also declined by 5% year-over-year to $539.1 million.
Net income increased by 76% year-over-year to $41.2 million, or $1.18 earnings per diluted share, which is up 82% year-over-year.
EchoPark Segment revenues decreased by 14% year-over-year to $517.3 million, but achieved a record second quarter total gross profit of $51.1 million, up 91% year-over-year.
The CDK Global software outage is estimated to have reduced second quarter GAAP income before taxes by approximately $30.0 million, or $0.64 in diluted earnings per share.
Revenue by Segment
Forward Guidance
Sonic Automotive maintains guidance for positive quarterly EchoPark Segment adjusted EBITDA for the remainder of 2024, which is expected to help mitigate the continuing effects of margin normalization in our Franchised Dealerships Segment on consolidated earnings potential.
Positive Outlook
- Continued progress in EchoPark Segment performance.
- Expectation of continued growth in the second half of 2024 and beyond.
- Team remains dedicated to delivering an outstanding guest experience.
- Continued improvement in used vehicle business in both the Franchised Dealerships and EchoPark Segments.
- Guidance for positive quarterly EchoPark Segment adjusted EBITDA for the remainder of 2024.
Challenges Ahead
- Operational challenges in the last 12 days of the second quarter due to the CDK Global software outage.
- Experienced operational disruptions throughout July related to the functionality of certain CDK customer lead applications, inventory management applications and related third-party application integrations with CDK.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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