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Dec 31, 2021
Sonic Automotive Q4 2021 Earnings Report
Reported all-time record fourth quarter and full year revenues and earnings per share and completed RFJ Auto acquisition.
Key Takeaways
Sonic Automotive reported record fourth-quarter revenues of $3.2 billion, a 13.8% increase year-over-year. The company's net income from continuing operations was $96.3 million ($2.25 per diluted share). They completed the acquisition of RFJ Auto Partners, which is expected to add $3.2 billion in 2022 revenues, and raised the quarterly cash dividend by 108%.
Record fourth quarter revenues of $3.2 billion, up 13.8% year-over-year
Record fourth quarter net income from continuing operations of $96.3 million ($2.25 per diluted share)
All-time record quarterly total Finance & Insurance (“F&I”) gross profit per retail unit of $2,415, up 18.9% year-over-year
Sonic’s Board of Directors approved a 108% increase to the Company’s quarterly cash dividend, to $0.25 per share
Forward Guidance
Sonic Automotive expects continued growth in 2022 and beyond, driven by the EchoPark expansion and recent acquisitions.
Positive Outlook
- RFJ Auto acquisition expected to add $3.2 billion in annual revenues
- Focus on modernizing brand while providing high-quality guest-centric experience
- Continued nationwide expansion of EchoPark pre-owned vehicle brand
- Increasing the total capacity of credit facilities to $2.95 billion
- Board of Directors declared a 108% increase of the Company’s quarterly cash dividend to $0.25 per share
Challenges Ahead
- Navigating unprecedented supply chain issues
- Record low levels of new vehicle inventory
- Record-high new and used vehicle pricing
- Human capital challenges due to the ongoing pandemic
Historical Earnings Impact
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Avg. Return Before/After Earnings
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