Sonic Automotive Q1 2024 – Revenues Down 3% to $3.4B

By Tamara Parker • Thursday, April 25 10:25 • Permanent Link

Sonic Automotive, Inc. has reported its financial results for the first quarter ended March 31, 2024. The company's total revenues were $3.4 billion, down 3% year-over-year, with total gross profit also down 3% year-over-year to $536.2 million. Reported net income was $42.0 million, down 12% year-over-year, and reported earnings per diluted share were $1.20, down 7% year-over-year.

The Echopark segment achieved all-time record quarterly adjusted EBITDA of $7.3 million, marking a 120% increase year-over-year. This exceeded the previously stated target of breakeven adjusted EBITDA for the first quarter. Excluding closed stores, the Echopark segment's adjusted EBITDA was $9.4 million, reflecting a 142% improvement year-over-year.

The segment's revenues totaled $559.4 million, down 14% year-over-year, but the record first quarter Echopark segment total gross profit reached $52.6 million, a significant 34% increase year-over-year. Retail used vehicle unit sales volume for the Echopark segment was 17,981, down 10% year-over-year. The reported Echopark segment loss was $2.9 million, while the adjusted Echopark segment income was $1.3 million.

Sonic Automotive repurchased approximately 0.5 million shares of its class A common stock for an aggregate purchase price of approximately $27.0 million during the first quarter.

The franchise dealerships segment saw same store revenues increase by 1%, with same store gross profit down 5% year-over-year. The segment's same store retail new vehicle unit sales volume was up 5%, while the same store retail new vehicle gross profit per unit decreased by 32% to $3,716. Additionally, the same store retail used vehicle unit sales volume was up 4%, with the same store retail used vehicle gross profit per unit down 3% to $1,585.

The Powersports segment reported revenues of $27.7 million, down 19% year-over-year, with a gross profit of $7.8 million, down 20% year-over-year. The segment reported a loss of $2.3 million and an adjusted EBITDA loss of $0.8 million.

Sonic's board of directors approved a quarterly cash dividend of $0.30 per share, payable on July 15, 2024, to all stockholders of record on June 14, 2024.

The market has reacted to these announcements by moving the company's shares 9.7% to a price of $56.07. If you want to know more, read the company's complete 8-K report here.

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