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Sep 30, 2020
Sonic Automotive Q3 2020 Earnings Report
Reported all-time record third quarter earnings driven by the strength and resilience of the business model, increasing consumer demand, and enhanced operating efficiency and profitability.
Key Takeaways
Sonic Automotive reported all-time record earnings for the third quarter of 2020. The company's business model demonstrated strength and resilience, leading to the highest third-quarter profit in company history. EchoPark achieved record quarterly revenues and retail sales volume. SG&A expenses decreased, and operating efficiency improved.
All-time record earnings per diluted share from continuing operations of $1.35, up 105% year-over-year.
SG&A expenses as a percentage of gross profit decreased to 68.3% compared to 76.7% in the prior year.
Total consolidated revenues reached $2.5 billion and gross profit was $376.6 million.
EchoPark revenues reached a record $385.1 million, up 23.3% year-over-year, with record retail sales volume of 15,127 units, up 14.5% year-over-year.
Sonic Automotive
Sonic Automotive
Sonic Automotive Revenue by Segment
Revenue by Segment
Franchised Dealerships Revenue
CapyFin.com Forward Guidance
The company did not provide specific forward guidance in this earnings report. However, they mentioned plans to more than double total revenues and dramatically increase profitability in the next five years through omni-channel experience and expansion of the EchoPark brand.
Positive Outlook
- Enhancing e-commerce platform for integrated online and on-site sales.
- Expanding EchoPark brand nationally to a 140-point network.
- Expecting EchoPark to retail over half a million pre-owned vehicles annually by 2025.
- Increasing operating efficiency at franchised dealerships and EchoPark stores.
- Ongoing cost-management initiatives resulting in a leaner, more efficient organization.
Challenges Ahead
- Economic conditions in operating markets could impact results.
- Fluctuations in new and used vehicle industry sales volume.
- Success of operational strategies is subject to uncertainty.
- Overall economic expansion or contraction could affect performance.
- COVID-19 pandemic and related restrictions could impact operations.