Sonic Automotive(SAH) - 2025 Q1 - Quarterly Results

Financial Performance - First quarter total revenues reached $3.7 billion, an increase of 8% year-over-year; total gross profit was$ 566.4 million, up 6% year-over-year[2] - Reported net income for the first quarter was $70.6 million, a 68% increase year-over-year, translating to$ 2.04 earnings per diluted share, up 70% year-over-year[2] - Total revenues for the three months ended March 31, 2025, increased by 8% to $3,651.3 million compared to$ 3,384.0 million in 2024[18] - Net income for the same period rose by 68% to $70.6 million, up from$ 42.0 million in 2024[18] - Operating income improved by 36% to $145.0 million, compared to$ 106.7 million in the prior year[18] - Reported net income for Q1 2025 was $70.6 million, compared to$ 42.0 million in Q1 2024, representing a 68.1% increase[33] - Adjusted net income for Q1 2025 was $51.3 million, up from$ 47.5 million in Q1 2024, reflecting a 6.4% increase[33] Segment Performance - EchoPark Segment revenues were $559.7 million, flat year-over-year, with an all-time record quarterly gross profit of$ 63.9 million, up 21% year-over-year[2] - EchoPark Segment reported income was $10.3 million, compared to a segment loss of$ 2.9 million in the prior year, marking a 455% improvement year-over-year[2] - Adjusted EBITDA for the EchoPark Segment reached an all-time record of $15.8 million, up 116% year-over-year from$ 7.3 million[2] - The Franchised Dealerships Segment reported total revenues of $3,057.2 million, a 9% increase from$ 2,796.9 million in 2024[19] - The EchoPark Segment achieved total revenues of $559.7 million, slightly up from$ 559.4 million in 2024[22] - Powersports Segment achieved first quarter record revenues of $34.4 million, a 24% increase year-over-year, although it reported a segment loss of$ 3.5 million, a 52% increase from the prior year[11] Cash and Liquidity - As of March 31, 2025, the company had approximately $430 million in cash and floor plan deposits, with total liquidity of approximately$ 947 million[3] - The Board of Directors approved a quarterly cash dividend of $0.35 per share, payable on July 15, 2025[5] - The company declared dividends of$ 0.35 per common share, representing a 17% increase from $0.30 in the previous year[18] Sales and Profitability - Retail new vehicle revenues grew by 14% to$ 1,656.3 million, while total new vehicle revenues also increased by 14% to $1,678.4 million[18] - The unit sales volume for retail new vehicles in the Franchised Dealerships Segment increased by 11% to 28,082 units[19] - Gross profit per unit for retail new vehicles decreased by 17% to$ 3,089 compared to $3,722 in 2024[21] - EchoPark segment used vehicle unit sales rose by 7% to 18,798 units in Q1 2025 compared to 17,618 units in Q1 2024[23] - Powersports segment retail new vehicle unit sales increased by 18% to 993 units in Q1 2025 from 845 units in Q1 2024[24] Expenses and Adjustments - Total adjusted SG&A expenses decreased by 6% to$ 408.4 million in Q1 2025 from $385.8 million in Q1 2024[26] - Total SG&A expenses for the Franchised Dealerships Segment decreased by 4% to$ 325.9 million in Q1 2025 from $338.5 million in Q1 2024[27] - Total SG&A expenses for the EchoPark Segment increased by 2% to$ 44.8 million in Q1 2024 from $45.6 million in Q1 2023[28] - Total SG&A expenses for the Powersports Segment increased by 19% to$ 9.6 million in Q1 2025 from $8.1 million in Q1 2024[29] - Total pre-tax adjustments for Q1 2025 amounted to$ (26.7) million, compared to $7.4 million in Q1 2024[33] - The company incurred a cyber insurance payment adjustment of$ (30.0) million in Q1 2025[33] - The tax effect of adjustments in Q1 2025 was $7.4 million, compared to$ (1.9) million in Q1 2024[33]