Sonic Automotive Q4 earnings: Impairment charge hits bottom line
Sonic announced it has created a powersports segment of the company that involves 13 locations, produced $53.5 million in revenue in 2022 and is expected to add about $200 million in revenue to the company for 2023.
“We remain focused on leveraging growth opportunities across our diversified portfolio to maximize future earnings potential and to position Sonic Automotive for continued success in the future,” Sonic CEO David Smith said in a statement.
The retailer acquired Horny Toad Harley-Davidson in Temple, Texas, in January 2022; seven Team Mancuso Powersports stores in Houston, Texas, in August 2022; and the five-location Black Hills Harley-Davidson in Rapid City, S.D., this month.
Sonic’s results were buoyed by a 14 percent gain in franchised dealership revenue, along with revenue of $589.3 million for EchoPark, a fourth-quarter record and a 1.7 percent gain for that unit. However, EchoPark’s same-market revenue declined 16 percent for the period.
Sonic shares fell 1.3 percent to close at $60.66 on Wednesday.
Q4 revenue: $3.59 billion, up 13 percent from a year earlier
Q4 net loss: $190.9 million, a swing from net income of $96.3 million a year earlier
Q4 adjusted net income: $97.8 million, down 14 percent
Q4 vehicle sales: Sonic’s franchised dealership segment retailed 26,239 new vehicles, up 12 percent from a year earlier, and 26,631 used vehicles, up 14 percent. On a same-store basis, the franchised dealerships sold 23,416 new vehicles, up 5.3 percent, and 23,624 used vehicles, up 5.6 percent. EchoPark retailed 26 new vehicles, down 56 percent, and 17,435 used vehicles, up 11 percent. On a same-market basis, EchoPark sold 26 new vehicles, down 56 percent, and 13,919 used vehicles, down 6.5 percent.
Q4 records: All-time quarterly revenue; fourth-quarter records in gross profit, EchoPark revenue, EchoPark used-vehicle sales volume, franchised dealership finance-and-insurance gross profit per vehicle
2022 revenue: $14 billion, up 13 percent
2022 net income: $88.5 million, down 75 percent
2022 adjusted net income: $381.6 million, up 4.2 percent
2022 vehicle sales: Sonic’s franchised dealership segment retailed 99,424 new vehicles, down 0.4 percent, and 108,512 used vehicles, up 2.9 percent. On a same-store basis, the franchised dealerships retailed 84,663 new vehicles, down 14 percent, and 92,939 used vehicles, down 11 percent. EchoPark retailed 152 new vehicles, up 19 percent, and 64,107 used vehicles, down 18 percent. On a same-market basis, EchoPark sold 152 new vehicles, up 19 percent, and 51,336 used vehicles, down 33 percent.
2022 records: Revenue, gross profit, adjusted net income, EchoPark revenue, EchoPark gross profit, franchised dealership F&I gross profit per vehicle
Ranking: Sonic ranked No. 7 on Automotive News’ most recent list of the top 150 dealership groups based in the U.S., with sales of 103,486 new vehicles in 2021.
