Sonic Realizes 14 Percent Profit Increase in 2011
CHARLOTTE - Sonic Automotive Inc. reported the company’s total 2011 revenues were up 14 percent year over year. Total fourth quarter revenues were up 12 percent from the year-ago quarter as well.
New-vehicle retail volume was up 15 percent in the fourth quarter 2011, while used-vehicle volume increased 11 percent for the quarter. The company’s parts and service revenue also increased, experiencing a 3 percent uptick during the reporting period and a 5 percent increase for full year.
"Our team's focus on used-car processes has produced double-digit volume growth for 11 consecutive quarters. This translates into a 15 percent compound annual growth rate over the last four years,” said Jeff Dyke, Sonic Automotive Inc. executive vice president of operations. “We continue to believe there are significant future growth opportunities throughout the business as we continue the implementation of our strategic initiatives. The top line growth continued to drive incremental gross profit dollars, which allowed us to further leverage our expense structure with fourth quarter adjusted SG&A to gross profit coming in at 76.6 percent which is the lowest level in several years."
Wrapping up its strongest years in company history, officials said the dealer group expects to see steady growth this year and expects the new-vehicle industry to end 2012 at 13.5 million units.
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