SONIC AUTOMOTIVE, INC. (NYSE:SAH) Files An 8-K Regulation FD Disclosure
Item7.01.
| Regulation FD Disclosure. |
1Q2017 and FY2017 Outlook
Sonic Automotive, Inc. (Sonic) continues to grow its business
through open point dealerships, acquisitions, new facility
enhancements and the expansion of its EchoPark stores. A timeline
of these events include:
| Franchised Dealerships |
|
Third and fourth quarter of 2016 opened two new franchised dealerships (Mercedes-Benz of McKinney and Nissan of Cleveland) |
|
Fourth quarter of 2016 grand opening of the new BMW of Denver Downtown store |
|
First quarter of 2017 grand opening of the brand new facility for Mercedes-Benz of Denver |
|
First half of 2017 prepare for opening of the new Audi dealership in Pensacola, Florida |
| EchoPark |
|
Third and fourth quarter of 2016 opened two new EchoPark stores (in Littleton, Colorado and Stapleton, Colorado) |
|
First half of 2017 conversion of four AutoMatch USA dealerships, acquired in third quarter of 2016, to EchoPark stores |
|
First half of 2017 prepare for opening a new EchoPark store in Colorado Springs, Colorado |
All of these efforts are consistent with Sonics long-term growth
strategy.As a result of this rapid expansion, Sonic expects
selling, general and administrative expense increases during the
opening and ramp up periods of these new locations, in addition
to an increase in depreciation expense related to the new
facilities coming on line. For the fiscal quarter ending March31,
2017, Sonic expects diluted earnings per share from continuing
operations to be in the range of $0.22 to $0.26 per share and
adjusted EBITDA to be in the range of approximately $52.5 million
to $57.7 million. Comparable figures for fiscal quarter ended
March31, 2016, were diluted earnings per share from continuing
operations of $0.31 per share on a GAAP basis and $0.39 per share
on an adjusted basis and adjusted EBITDA of approximately $57.7
million. Attached hereto as Exhibit 99.1 are historical and pro
forma financial information setting forth the foregoing
calculations, including reconciliations for non-GAAP financial
measures.
After the initial opening and ramp up periods, Sonic believes
these new locations will drive future sales and profitability
growth during the 2017 year. Sonic reaffirms its guidance of
diluted earnings per share from continuing operations for the
full year ending December31, 2017 to be between $2.00 and $2.10
per year, which is the same anticipated range that was disclosed
publicly by Sonic on February21, 2017.
Non-GAAP Financial Measures
Exhibit 99.1 hereto includes reconciliations of non-GAAP
financial measures as defined under Securities and Exchange
Commission (SEC) rules, such as adjusted earnings per share and
adjusted EBITDA. As required by SEC rules, Sonic provides
reconciliations of these measures to the most directly comparable
GAAP financial measures in the attached tables. Sonic believes
that these non-GAAP financial measures improve the transparency
of its disclosure, provide a meaningful presentation of results
from its core business operations excluding the impact of items
not related to its ongoing core business operations, and improve
the period-to-period comparability of results from its core
business operations.
Forward-Looking Statements
This current report on Form 8-K contains forward-looking
statements within the meaning of the Private Securities
Litigation Reform Act of 1995, including statements with respect
to anticipated diluted earnings per share from continuing
operations for the quarter ending March31, 2017 and the full year
ending December31, 2017 and adjusted EBITDA for the quarter
ending March31, 2017. The foregoing expectations are based solely
on information available to Sonic as of the date hereof and are
inherently uncertain and subject to change due to a variety of
factors. There are many factors that affect managements views
about future events and trends of Sonics business. These factors
involve risks and uncertainties that could cause actual results
or trends to differ materially from managements views, including
without limitation, economic conditions in the markets in which
we operate, new and used vehicle industry sales volume, the
success of our operational strategies, the rate and timing of
overall economic recovery or decline, and the risk factors
described in Sonics annual report on Form 10-K for the year ended
December31, 2016. Actual results remain subject to the completion
of the first quarter of fiscal 2017 on March31, 2017, managements
and the audit committees reviews and our other quarterly
financial closing procedures and the completion of the
preparation of Sonics interim consolidated financial statements.
Sonic does not undertake any obligation to update forward-looking
information, except as required under federal securities laws and
the rules and regulations of the SEC.
| Item9.01. | Financial Statements and Exhibits. |
| (d) | Exhibits. |
| 99.1 |
Certain Historical and Pro Forma Financial Information for the quarters ending March31, 2016 and 2017. |
About SONIC AUTOMOTIVE, INC. (NYSE:SAH)
Sonic Automotive, Inc. is an automotive retailer in the United States. The Company’s operating segments include Franchised Dealerships and EchoPark. The Company’s Franchised Dealerships segment consists of traditional retail automotive franchises that sell new and used vehicles, replacement parts and vehicle repair and maintenance services, and finance and insurance products. The EchoPark segment consists of standalone pre-owned specialty retail locations that provide customers an opportunity to search, buy, service and sell their pre-owned vehicles. The Company’s dealerships provide services, including sales of both new and used cars, and light trucks; sales of replacement parts; performance of vehicle maintenance; manufacturer warranty repairs; paint and collision repair services, and arrangement of extended warranties, service contracts, financing, insurance and other aftermarket products for its customers. The Company’s specialty retail locations operate under the EchoPark brand. SONIC AUTOMOTIVE, INC. (NYSE:SAH) Recent Trading Information
SONIC AUTOMOTIVE, INC. (NYSE:SAH) closed its last trading session up +0.05 at 21.15 with 179,019 shares trading hands.