The following is a summary of the Sonic Automotive, Inc. (SAH) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Q2 reported EPS was $1.18 and adjusted EPS was $1.47, marking a 20% decrease year-over-year primarily due to a CDK software outage.

• Record second quarter adjusted EBITDA achieved for EchoPark segment, demonstrating robust segment performance.

• Estimated $30 million impact on Q2 GAAP income before taxes from CDK outage, affecting diluted earnings per share by approximately $0.64.

• Franchise dealership trends showed a slower sales rate affecting new vehicle inventory levels, leading to a moderation in gross profit per unit decline to $3,590.

Business Progress:

• Expansion in EchoPark's operational metrics, with an increase in adjusted EBITDA and retail unit sales on a same-store basis.

• F&I performance remained strong, with a slight sequential increase and structural expectation to stay high despite economic pressures.

• Positive outlook and continued growth in parts and service operations, with an initiative to hire 300 additional technicians in 2024.

• Launch of sonicpowersports.com to enhance Powersports segment offerings.

Opportunities:

• Anticipated continuation of EchoPark growth and segment profit improving, reinforcing Sonic's diverse business model effectiveness despite industry-wide challenges.

• Expected benefit from normalized seasonal trends in used vehicle pricing enhancing business affordability and sale volumes.

Risks:

• Possible ongoing operational disruptions from third-party software applications impacting customer lead and inventory management systems.

• Pressure on new vehicle gross profit per unit expected to continue though at moderated levels.

• Consumer affordability challenges persist exacerbated by high-interest rates affecting finance and insurance performance.

More details: Sonic Automotive IR

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