Sonic Automotive, Inc. has released its financial results for the second quarter ended June 30, 2024. The company reported total revenues of $3.5 billion, reflecting a 5% year-over-year decrease, with total gross profit also down 5% year-over-year to $539.1 million.
Reported net income for the quarter was $41.2 million, marking a significant 76% increase year-over-year, resulting in $1.18 earnings per diluted share, up 82% year-over-year.
The Echopark segment reported revenues of $517.3 million, down 14% year-over-year. However, it achieved a record second quarter total gross profit of $51.1 million, representing a substantial 91% increase compared to the same period last year. Echopark segment's retail used vehicle unit sales volume amounted to 16,641, marking a 3% decline year-over-year.
Sonic Automotive also noted that the CDK Global software outage had a notable impact on its financials, estimating that it reduced second quarter GAAP income before taxes by approximately $30.0 million and net income by approximately $22.2 million, or $0.64 in diluted earnings per share.
On the operational front, the Franchised Dealerships segment reported various changes in key metrics, including a 3% decline in same-store revenues and a 9% decrease in same-store gross profit. Similarly, the Echopark segment revealed that its same market basis revenues were up 10% and gross profit was up 81%, excluding closed stores.
Despite the challenges posed by the CDK outage, Sonic Automotive's President, Jeff Dyke, expressed confidence in the company's ability to deliver an outstanding guest experience and execute its long-term strategic vision. The company also maintained its guidance for positive quarterly Echopark segment adjusted EBITDA for the remainder of 2024.
Sonic Automotive's Board of Directors approved a quarterly cash dividend of $0.30 per share, payable on October 15, 2024, to all stockholders of record on September 13, 2024.
The company ended the quarter with $467 million in cash and floor plan deposits on hand, and approximately $885 million of total liquidity, before considering unencumbered real estate, demonstrating a strong financial position.
Sonic Automotive, Inc., based in Charlotte, North Carolina, is a Fortune 500 company aiming to become the most valuable diversified automotive retail and service brand in America. Its commitment to delivering industry-leading guest experiences and pursuing expansive growth sets the stage for the company's future endeavors.
Echopark Automotive, a subsidiary of Sonic Automotive, distinguishes itself as one of the most comprehensive retailers of nearly new pre-owned vehicles in the United States. Its innovative technology-enabled sales strategies and personalized buying process have positioned it among the top national pre-owned vehicle retailers.
Senior management will hold a conference call at 10:00 a.m. (Eastern) to discuss the second quarter 2024 earnings. The investor presentation and earnings press release materials will be accessible on the company's website prior to the conference call. As a result of these announcements, the company's shares have moved 2.6% on the market, and are now trading at a price of $57.33. For the full picture, make sure to review Sonic Automotive's 8-K report.
