Q4 2024 Sonic Automotive Inc Earnings Call Transcript
Key Points
- Sonic Automotive Inc (SAH) achieved all-time record quarterly franchise revenues of $3.4 billion, up 12% year over year.
- The company reported a 13% increase in new retail volume and a 5% increase in used retail volume.
- Echo Park segment achieved profitability on a pre-tax basis in 2024, with adjusted EBITDA of $27.6 million, up from a loss of $83 million in 2023.
- Sonic Automotive Inc (SAH) successfully added 335 net technicians in 2024, exceeding their goal and setting the stage for strong fixed operations growth in 2025.
- The company announced a quarterly cash dividend of $0.35 per share, reflecting confidence in its financial position.
- Adjusted EPS for the fourth quarter was $1.51 per share, a 7% decrease year over year.
- Echo Park's fourth quarter adjusted EBITDA was $4.2 million, below the previous guidance of $7 million to $8 million.
- Used vehicle supply constraints and consumer affordability remain challenges, impacting the used vehicle segment.
- The company experienced a $200 sequential decline in used GPU at Echo Park due to inventory management issues.
- Sonic Automotive Inc (SAH) faces potential headwinds from electric vehicle inventory management, impacting new GPU by approximately $400.
Good morning and welcome to the Sonic Automotive, fourth quarter 2024 earnings conference call. This conference call is being recorded today, Wednesday, February 12, 2025. Presentation materials which the company management discussions on the conference call can be accessed at the company's website @ir.sonicautomotive.com.
At this time I'd like to refer to the Safe Harbor statement under the Private Securities Litigation Reform Act of 1995. During this conference call, management may discuss financial projections, information, or expectations about the company's products or market or otherwise make statements about the future.
Such statements are forward-looking and subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These risks and uncertainties are detailed in the company's filings with the Securities and Exchange Commission.
In addition management, it may discuss certain non-GAAP financial measures. As defined by the Securities and Exchange Commission, please refer to the non-GAAP reconciliation tables
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