Auto

Sonic Automotive earnings: Q1 net income soars 80%

Sonic Automotive Inc.’s first-quarter net income soared 80 % to $97.3 million regardless of a drop in used-vehicle gross sales from its rising EchoPark model. The dealership group reported slight improve in retail gross sales at its increasing portfolio of franchised dealerships.

Revenue for the Charlotte, N.C., retailer rose 29 % to $3.6 billion, a first-quarter file, Sonic mentioned.

On the franchised dealership aspect, common gross revenue per new automobile greater than doubled to $6,771 within the first quarter, Sonic mentioned, whereas common gross revenue per used automobile additionally elevated.

Sonic mentioned complete F&I gross revenue per retail automobile hit $2,495, an all-time quarterly file.

The group’s standalone EchoPark used-vehicle shops generated file first-quarter income of $625.3 million, however larger bills led to a $34.9 million loss for the unit.

“Despite inventory constraints and inflation due to ongoing supply chain issues, we continue to see solid consumer demand for vehicle sales and parts and services throughout our business,” CEO David Smith said in a statement Thursday. “With these favorable trends and our continued focus on executing our long-term strategic growth plan for Sonic and EchoPark, we remain confident in reaching our stated goal of $28 billion in total revenues by 2025.”

Sonic made its first franchised dealership acquisitions in years in 2021, together with the December buy of RFJ Auto Partners Holdings Inc., one of many largest privately owned dealership teams within the U.S.

Sonic accomplished one acquisition within the first quarter, with the January buy of Sun Chevrolet in Chittenango, N.Y., its first franchised dealership within the state.

Sonic additionally expanded its EchoPark model within the quarter with the opening of a supply heart in Johnson City, Tenn., in March.

In April, Sonic opened an EchoPark supply heart in Columbus, Ga., and a retail hub in Raleigh, N.C., increasing the community to 38 places.

Sonic shares closed down 0.8 percent Wednesday to $42.98.

 

Q1 income: $3.6 billion, up 29 % from a year earlier

 

Q1 net income: $97.3 million, up 80 % from a year earlier

 

Q1 automobile gross sales: Franchised dealerships bought 51,680 new and used retail automobiles, up 1.2 %. EchoPark shops bought 14,995 used automobiles, down 24 %.

 

Records: First-quarter income, first-quarter pretax income from persevering with operations, all-time quarterly complete F&I gross revenue per automobile and first-quarter EchoPark income, amongst others.

 

Ranking: Sonic ranks No. 7 on Automotive News‘ record of the highest 150 dealership teams based mostly within the U.S., retailing 103,486 new automobiles in 2021.

Back to top button