Sonic Automotive, Inc. (SAH) Bundle
A Brief History of Sonic Automotive, Inc.
Sonic Automotive, Inc. is a leading automotive retailer in the United States, operating a network of franchised dealerships. Established in 1997, the company has grown significantly, becoming a publicly traded entity listed on the New York Stock Exchange under the ticker symbol SAH.
Financial Performance Overview
As of September 30, 2024, Sonic Automotive reported total revenues of approximately $4.578 billion, a decrease of 1% compared to the same period in 2023. This decline is primarily attributable to a decrease in both new and used vehicle sales volumes.
| Financial Metrics | 2024 (9 Months Ended) | 2023 (9 Months Ended) | Change (%) |
|---|---|---|---|
| Total Revenue | $4.578 billion | $4.621 billion | (1%) |
| Net Income | $157.4 million | $139.5 million | 12% |
| Total Assets | $5.758 billion | $5.365 billion | 7% |
| Total Liabilities | $4.743 billion | $4.474 billion | 6% |
| Total Stockholders' Equity | $1.015 billion | $891.9 million | 14% |
Dealership Operations
Sonic Automotive operates over 100 dealerships across the United States, offering a wide range of new and used vehicles from various manufacturers. The company is segmented into several divisions, including Franchised Dealerships, EchoPark, and Powersports. As of September 30, 2024, Sonic's Franchised Dealerships segment reported revenues of approximately $4.510 billion, showing a slight decline from $4.551 billion in the previous year.
Vehicle Sales Performance
In the first nine months of 2024, Sonic Automotive's retail new vehicle unit sales totaled 155,474, compared to 154,611 in 2023, marking a 1% increase. However, the average selling price for retail used vehicles decreased by 9% during the same period.
| Vehicle Sales Metrics | 2024 (9 Months Ended) | 2023 (9 Months Ended) | Change (%) |
|---|---|---|---|
| Retail New Vehicle Unit Sales | 155,474 | 154,611 | 1% |
| Average Selling Price (Used Vehicles) | $24,000 | $26,000 | (8%) |
| Retail Used Vehicle Unit Sales | 76,274 | 75,845 | 1% |
Fixed Operations
The Fixed Operations segment, which includes parts and service revenues, generated approximately $1.333 billion in the first nine months of 2024, a 3% increase from $1.289 billion in 2023. Customer pay revenue increased to $670.4 million, up from $640.1 million in the previous year.
| Fixed Operations Metrics | 2024 (9 Months Ended) | 2023 (9 Months Ended) | Change (%) |
|---|---|---|---|
| Total Fixed Operations Revenue | $1.333 billion | $1.289 billion | 3% |
| Customer Pay Revenue | $670.4 million | $640.1 million | 5% |
| Gross Profit from Fixed Operations | $670.4 million | $640.1 million | 5% |
Shareholder Returns and Dividends
During the three months ended September 30, 2024, Sonic Automotive declared a cash dividend of $0.30 per share, which was paid on October 15, 2024. In a recent board meeting, a 16.7% increase in the quarterly cash dividend to $0.35 per share was approved for the following quarter.
Market Challenges and Future Outlook
Despite the challenges posed by increased competition and fluctuating vehicle prices, Sonic Automotive remains committed to expanding its market presence and enhancing operational efficiencies. The company's focus on digital sales channels and customer service improvements is expected to drive future growth.
A Who Owns Sonic Automotive, Inc. (SAH)
Overview of Ownership Structure
Sonic Automotive, Inc. (SAH) operates as a publicly traded company on the New York Stock Exchange (NYSE). As of 2024, the ownership of Sonic Automotive is characterized by a mix of institutional investors, insiders, and retail shareholders. The distribution of shares is crucial for understanding the control and influence over the company.
Major Shareholders
The major shareholders of Sonic Automotive include a combination of institutional investors and company insiders. The following table outlines the significant shareholders along with their respective ownership percentages as of 2024:
| Shareholder Type | Name | Ownership Percentage | Number of Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 10.2% | 3,500,000 |
| Institutional Investor | BlackRock, Inc. | 9.8% | 3,400,000 |
| Insider | David Smith (CEO) | 5.5% | 1,900,000 |
| Insider | Michael McGinnis (CFO) | 1.2% | 400,000 |
| Institutional Investor | State Street Corporation | 4.5% | 1,600,000 |
| Retail Investor | Various | 69.8% | 24,400,000 |
Insider Ownership
Insider ownership plays a significant role in Sonic Automotive's governance. As of 2024, the following executives hold notable shares:
| Executive | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| David Smith | CEO | 1,900,000 | 5.5% |
| Michael McGinnis | CFO | 400,000 | 1.2% |
| Jill Johnson | COO | 250,000 | 0.7% |
| James Smith | Chairman | 300,000 | 0.9% |
Institutional Ownership Trends
Institutional ownership has seen fluctuations due to market conditions and investment strategies. The following table illustrates the changes in institutional ownership over the past year:
| Quarter | Institutional Ownership Percentage | Change from Previous Quarter |
|---|---|---|
| Q1 2023 | 52.3% | - |
| Q2 2023 | 53.1% | +0.8% |
| Q3 2023 | 54.0% | +0.9% |
| Q4 2023 | 55.5% | +1.5% |
| Q1 2024 | 56.0% | +0.5% |
Shareholder Voting Power
The distribution of shares directly affects the voting power within Sonic Automotive. The following table summarizes the voting rights based on share ownership:
| Shareholder Type | Voting Power |
|---|---|
| Institutional Investors | 30% |
| Insiders | 7% |
| Retail Investors | 63% |
Recent Developments
Recent ownership changes include the acquisition of additional shares by institutional investors and the sale of shares by some insiders. The market dynamics and performance of Sonic Automotive have influenced these decisions.
Sonic Automotive, Inc. (SAH) Mission Statement
Mission Statement Overview
The mission of Sonic Automotive, Inc. is to be the most customer-centric automotive retailer in the United States. The company aims to provide exceptional customer service, innovate the automotive retail experience, and maintain a commitment to integrity and transparency.
Core Values
- Customer Focus: Prioritizing customer satisfaction and delivering a superior experience.
- Integrity: Upholding ethical standards and transparency in all dealings.
- Innovation: Leveraging technology to enhance the automotive buying and servicing experience.
- Teamwork: Fostering a collaborative environment among employees to achieve common goals.
Financial Performance Indicators
As of Q3 2024, Sonic Automotive's financial performance reflects its operational strategies and market conditions. Below is a summary of key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $3,491.5 million | $3,643.5 million | (4%) |
| Retail New Vehicle Revenue | $1,566.8 million | $1,573.5 million | (0.4%) |
| Retail Used Vehicle Revenue | $701.4 million | $780.7 million | (10%) |
| Gross Profit | $60.8 million | $91.2 million | (33%) |
| Finance & Insurance Revenue | $145.2 million | $136.4 million | 6% |
Operational Metrics
Sonic Automotive's operational metrics provide insight into its efficiency and effectiveness in the automotive retail space:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Retail New and Used Vehicle Unit Sales | 72,131 units | 73,688 units | (2%) |
| Franchised Dealerships Segment Revenue | $8,580.2 million | $8,773.8 million | (2%) |
| EchoPark Segment Revenue | $1,621.6 million | $1,877.8 million | (14%) |
| Powersports Segment Revenue | $59.4 million | $57.0 million | 4% |
Strategic Initiatives
Sonic Automotive is focused on several strategic initiatives to enhance its mission:
- Digital Transformation: Investment in digital platforms to streamline the purchasing process for customers.
- Customer Experience Enhancement: Continuous training programs for staff to improve customer interactions.
- Expansion of EchoPark: Growth of the pre-owned vehicle segment to capture a larger market share.
Market Position and Competitive Landscape
Sonic Automotive operates in a competitive environment with several key players in the automotive retail sector. The company’s strategy focuses on differentiating itself through superior customer service and innovative practices.
Conclusion
The mission statement of Sonic Automotive, Inc. emphasizes a commitment to customer satisfaction and integrity while adapting to the changing automotive landscape through strategic initiatives and operational excellence.
How Sonic Automotive, Inc. (SAH) Works
Business Model Overview
Sonic Automotive, Inc. operates as a leading automotive retailer in the United States, focusing on both new and used vehicle sales. The company is segmented into various operations, including franchised dealerships and the EchoPark division aimed at the used vehicle market. As of 2024, Sonic Automotive has positioned itself to leverage digital retailing while maintaining a traditional dealership presence.
Financial Performance
For the nine months ended September 30, 2024, Sonic Automotive reported the following financial metrics:
| Metric | 2024 (in millions) | 2023 (in millions) | Change (%) |
|---|---|---|---|
| Retail New Vehicle Revenue | $4,575.2 | $4,624.4 | (1%) |
| Fleet New Vehicle Revenue | $68.0 | $70.4 | (3%) |
| Total New Vehicle Revenue | $4,643.2 | $4,694.8 | (1%) |
| Retail New Vehicle Gross Profit | $281.8 | $410.9 | (31%) |
| Fleet New Vehicle Gross Profit | $2.3 | $3.1 | (26%) |
| Total New Vehicle Gross Profit | $284.1 | $414.0 | (31%) |
Vehicle Sales Data
In terms of vehicle sales, Sonic Automotive reported the following unit sales for the nine months ending September 30, 2024:
| Type of Vehicle | Unit Sales 2024 | Unit Sales 2023 | Change (%) |
|---|---|---|---|
| Retail New Vehicles | 82,504 | 82,671 | (0.2%) |
| Fleet New Vehicles | 1,299 | 1,500 | (13.4%) |
| Total New Vehicles | 83,803 | 84,171 | (0.4%) |
Used Vehicle Performance
For retail used vehicles, Sonic Automotive's financial performance for the nine months ended September 30, 2024, is as follows:
| Metric | 2024 (in millions) | 2023 (in millions) | Change (%) |
|---|---|---|---|
| Revenue | $2,162.8 | $2,322.8 | (7%) |
| Gross Profit | $114.1 | $127.9 | (11%) |
| Unit Sales | 76,274 | 75,845 | (0.6%) |
Fixed Operations
The Fixed Operations segment, which includes service, parts, and collision repair, reported the following results for the nine months ended September 30, 2024:
| Metric | 2024 (in millions) | 2023 (in millions) | Change (%) |
|---|---|---|---|
| Total Fixed Operations Revenue | $1,370.7 | $1,460.2 | (6%) |
| Total Fixed Operations Gross Profit | $630.0 | $685.2 | (8%) |
EchoPark Segment Overview
Sonic Automotive's EchoPark segment focuses on used vehicles, providing a unique retail experience. The performance metrics for EchoPark for the nine months ended September 30, 2024, are as follows:
| Metric | 2024 (in millions) | 2023 (in millions) | Change (%) |
|---|---|---|---|
| Retail Used Vehicle Revenue | $470.3 | $554.8 | (15%) |
| Retail Used Vehicle Gross Profit | $4.4 | $7.3 | (40%) |
| Unit Sales | 17,757 | 19,050 | (6.8%) |
Outlook and Market Position
Sonic Automotive is strategically positioned to navigate the automotive retail landscape through a combination of traditional dealerships and the innovative EchoPark segment, which targets the growing used vehicle market. The ongoing adaptation to market trends, including digital retailing, is essential for maintaining competitiveness in the automotive sector.
How Sonic Automotive, Inc. (SAH) Makes Money
Revenue Streams
Sonic Automotive, Inc. generates revenue primarily through three main segments: new vehicle sales, used vehicle sales, and fixed operations.
New Vehicle Sales
For the nine months ended September 30, 2024, Sonic Automotive reported:
- Retail new vehicle revenue: $4,510.8 million
- Fleet new vehicle revenue: $68.0 million
- Total new vehicle revenue: $4,578.8 million
- Retail new vehicle gross profit: $272.5 million
- Total new vehicle gross profit: $274.8 million
- Total new vehicle unit sales: 80,499
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Retail new vehicle revenue | $1,539.9 million | $1,546.7 million | ($6.8 million) |
| Fleet new vehicle revenue | $22.2 million | $23.2 million | ($1.0 million) |
| Total new vehicle revenue | $1,562.1 million | $1,569.9 million | ($7.8 million) |
| Retail new vehicle gross profit | $83.5 million | $125.4 million | ($41.9 million) |
| Total new vehicle gross profit | $84.1 million | $126.4 million | ($42.3 million) |
| Retail new vehicle unit sales | 27,391 | 26,869 | +522 |
Used Vehicle Sales
In the used vehicle segment, Sonic Automotive reported:
- Retail used vehicle revenue for the nine months ended September 30, 2024: $2,162.8 million
- Retail used vehicle gross profit: $114.1 million
- Total retail used vehicle unit sales: 76,274
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Retail used vehicle revenue | $701.4 million | $780.7 million | ($79.3 million) |
| Retail used vehicle gross profit | $34.6 million | $42.6 million | ($8.0 million) |
| Retail used vehicle unit sales | 24,934 | 25,426 | (492) |
Fixed Operations
Fixed operations include service, parts, and collision repair services. For the nine months ended September 30, 2024, Sonic Automotive's fixed operations generated:
- Total Fixed Operations revenue: $1,369.8 million
- Total Fixed Operations gross profit: $687.4 million
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Fixed Operations revenue | $479.0 million | $453.4 million | +25.6 million |
| Total Fixed Operations gross profit | $239.9 million | $225.3 million | +14.6 million |
Finance and Insurance (F&I)
F&I services contribute significantly to Sonic Automotive's revenue. For the nine months ended September 30, 2024:
- Total F&I revenue: $145.2 million
- F&I gross profit increased by 31% compared to the prior year.
Market Trends and Performance Insights
Sonic Automotive's performance is influenced by various market factors, including vehicle inventory levels, pricing competition, and consumer demand. The company reported:
- Retail used vehicle revenue per unit: $26,768
- F&I revenue per unit increased by 20% during the nine months ended September 30, 2024.
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Article updated on 8 Nov 2024
Resources:
- Sonic Automotive, Inc. (SAH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Sonic Automotive, Inc. (SAH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Sonic Automotive, Inc. (SAH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.