The following is a summary of the Sonic Automotive, Inc. (SAH) Q1 2024 Earnings Call Transcript:
Financial Performance:
Sonic Automotive reported Q1 total revenues of $3.4 billion, marking a 3% decrease from last year.
The GAAP EPS was $1.20 per share, while adjusted EPS was $1.36 per share, demonstrating a 2% increase year-over-year.
Total EchoPark revenues came in at $559 million, down 14% from the previous year, while gross profit was up 34% due to higher same-market volumes and pricing improvements.
The newly introduced Powersports segment reported revenues of $27.7 million and a segment adjusted loss of about $800,000.
The company predicted a continuous decline in the overall same-store new vehicle gross profit per unit throughout 2024, expected to exit Q4 in the low $3,000 range.
Business Progress:
Sonic Automotive witnessed a positive operating improvement in its EchoPark segment and maintained a commitment to returning capital to stockholders through share repurchases.
EchoPark managed to reach a breakeven EBITDA and is projected to stay positive for the forthcoming year.
Sonic Automotive plans to focus on changing market dynamics to achieve their long-term strategic goals. This includes plans to expand new vehicle inventory levels, align inventory with customer demands and improve sales opportunities.
As part of the company's initiative to grow, Sonic launched a program to add 300 incremental technicians throughout 2024, which is expected to bring in an additional $100 million in annualized Fixed Ops gross profit.
The company acknowledges the minor impact of Electric Vehicles (EVs) on the overall Per Unit Revenue, driven largely by specific brands. Despite some brands cutting back on EV production, Sonic's supply of EVs remains sufficient.
More details: Sonic Automotive IR
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