Sonic Automotive earnings: Q1 net income soars 80%

Sonic Automotive Inc.’s to start with-quarter internet income soared 80 % to $97.3 million despite a fall in employed-automobile income from its developing EchoPark brand name. The dealership group claimed slight improve in retail sales at its expanding portfolio of franchised dealerships.

Earnings for the Charlotte, N.C., retailer rose 29 per cent to $3.6 billion, a initial-quarter file, Sonic mentioned.

On the franchised dealership side, average gross income for each retail new auto a lot more than doubled to $6,771 in the initially quarter, Sonic said, although average gross profit for every applied motor vehicle also improved.

Sonic said overall F&I gross profit for every retail car or truck hit $2,495, an all-time quarterly record.

The group’s standalone EchoPark applied-automobile shops created document very first-quarter revenue of $625.3 million, but larger bills led to a $34.9 million loss for the unit.

“Irrespective of inventory constraints and inflation because of to ongoing supply chain issues, we go on to see stable buyer desire for car profits and sections and services all over our business,” CEO David Smith claimed in a assertion Thursday. “With these favorable traits and our ongoing focus on executing our lengthy-phrase strategic expansion plan for Sonic and EchoPark, we continue to be self-assured in achieving our stated target of $28 billion in full revenues by 2025.”

Sonic created its first franchised dealership acquisitions in years in 2021, like the December acquire of RFJ Automobile Partners Holdings Inc., a single of the most significant privately owned dealership teams in the U.S.

Sonic done a person acquisition in the first quarter, with the January purchase of Sunshine Chevrolet in Chittenango, N.Y., its first franchised dealership in the state.

Sonic also expanded its EchoPark model in the quarter with the opening of a delivery heart in Johnson City, Tenn., in March.

In April, Sonic opened an EchoPark delivery middle in Columbus, Ga., and a retail hub in Raleigh, N.C., increasing the network to 38 places.

Sonic shares closed down .8 percent Wednesday to $42.98.

 

Q1 profits: $3.6 billion, up 29 p.c from a year earlier

 

Q1 net cash flow: $97.3 million, up 80 p.c from a calendar year earlier

 

Q1 auto gross sales: Franchised dealerships marketed 51,680 new and utilised retail motor vehicles, up 1.2 per cent. EchoPark merchants bought 14,995 utilized autos, down 24 %.

 

Information: To start with-quarter income, to start with-quarter pretax cash flow from continuing operations, all-time quarterly overall F&I gross profit for each auto and very first-quarter EchoPark earnings, amongst other people.

 

Ranking: Sonic ranks No. 7 on Automotive Information‘ checklist of the top rated 150 dealership groups primarily based in the U.S., retailing 103,486 new automobiles in 2021.