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Sep 30, 2023
Sonic Automotive Q3 2023 Earnings Report
Sonic Automotive reported record third quarter revenues and strategic adjustments to EchoPark business drove improvements in EchoPark segment unit sales volume and profitability.
Key Takeaways
Sonic Automotive reported record third quarter revenues of $3.6 billion, up 6% year-over-year. Net income was $68.4 million, down 22% year-over-year, with adjusted net income at $72.0 million, down 18% year-over-year. The company repurchased 1.7 million shares of Class A Common Stock during the quarter and increased its quarterly cash dividend by 3.4% to $0.30 per share.
Record third quarter revenues of $3.6 billion, up 6% year-over-year.
EchoPark Segment revenues increased by 6% year-over-year, with all-time record quarterly gross profit up 22% year-over-year.
Company repurchased 1.7 million shares of Class A Common Stock during the third quarter.
Board of Directors approved a 3.4% increase to the Company's quarterly cash dividend, to $0.30 per share.
Revenue by Segment
Forward Guidance
Sonic Automotive expects to return to breakeven EchoPark Segment adjusted EBITDA in the first quarter of 2024.
Positive Outlook
- Confident in path to breakeven EchoPark segment adjusted EBITDA in the first quarter of 2024.
- Expect to resume disciplined long-term growth plans for EchoPark as used vehicle market conditions continue to improve.
- Diversified cash flow streams continue to benefit overall financial position.
- Well-positioned to adapt to evolving market conditions.
- Positioned for success in 2024 and beyond.
Challenges Ahead
- Consumer affordability continues to be a challenge.
- Used vehicle sourcing continues to be a challenge.
- Margin normalization in the franchised dealership segment.
- Ongoing expenses associated with the closed EchoPark stores of approximately $1.5 million to $2.0 million per quarter.
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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