DETROIT - Sonic Automotive, the third-largest U.S dealership group, today posted a quarterly profit that fell short of Wall Street estimates but beat year-ago results, Reuters reported. First-quarter net income totaled $4.15 million or 8 cents per share. Revenue rose 13 percent to $1.56 billion. "Not long ago, our stock price was below $1 per share, and there was a lot of uncertainty about our company," Sonic President Scott Smith said during a conference call with analysts. On an operating basis and excluding one-time items, Sonic posted a profit of 14 cents a share, compared with analysts' expectations of 19 cents, according to Thomson Reuters I/B/E/S. Adjusted earnings on continuing operations totaled 14 cents per diluted share, up from 10 cents a year ago. The first-quarter results for Sonic, which was on the verge of bankruptcy less than a year ago, followed last year's fourth-quarter results, which saw the retailer get back into the black. Last spring, the company restructured debts and was allowed to postpone a $90 million debt payment until 2012. Also mentioned in the first-quarter report and during a conference call:

  • Overall new-vehicle retail volume was up 10 percent, and used-vehicle retail volume was up 25 percent for the first quarter compared with the same time last year. It was Sonic's fourth straight quarter of used-vehicle sales growth.
  • Service and parts revenue for the first quarter was up about 3 percent compared with the same quarter last year.
  • Sonic's forecast is for U.S. sales of 11 million vehicles this year -- and sales performed at that level during the first quarter. Some analysts are forecasting as high as 13 million light-vehicle sales this year.
Jeff Dyke, Sonic's executive vice president, said he is "cautiously optimistic" the industry will enjoy a slow recovery this year, although he would not predict 12 million.
  • Employee satisfaction is Sonic's No. 1 priority and one that the company says should lead to greater customer satisfaction. Overall employee turnover was a record low of just less than 25 percent on an annual basis.
  • Like No. 1 auto retailer AutoNation, Sonic saw double-digit sales growth in most regions, even Florida. Only a couple of markets reported single-digit growth.
Sonic Automotive, based in Charlotte, N.C., operates 145 franchises at 122 dealerships.

About the author
Staff Writer

Staff Writer

Administrator

Staff writers for Agent Entrepreneur are professional journalists. Industry-specific information is reviewed by topic experts to ensure accuracy.

View Bio
0 Comments