Sonic Automotive reports powerful Q1 performance

Sonic Automotive Inc. released its first-quarter results on Thursday, which noted several record numbers across the board. 

Quarterly revenues reportedly grew 28.7% year over year (YoY), reaching a record high of $3.6 billion. Income from continuing operations before taxes totaled a record $128.9 million. At the same time, net income from contributing operations before taxes totaled $97.3 million. 

Sonic Automotive also said its selling, general and administrative expenses for Q1 dropped to a record low, and its total Finance and Insurance gross profit increased 22% YoY to a record high of $2,495. The company’s EchoPark segment did notably well, posting revenues of $625.3 million.

Sonic Automotive’s Chief Executive Officer, David Smith, said the results were “driven by persistent consumer demand, our enhanced digital sales, and marketing initiatives as well as the tremendous efforts of our teammates.” Chief Financial Officer Heath Byrd said contributions to the positive results included “consistently strong sales performance, expense management, cash flow generation and balanced capital allocation strategy.”

President Jeff Dyke added that Sonic Automotive’s “focus on the guest experience” is paying off and the company “remain[s] focused on achieving [its] goal of 90% U.S. population coverage by 2025.”

Sonic Automotive’s financial snapshot also reported results for FY2021, which showed $12.4 billion in revenues and a total of 283,235 vehicles sold. The company also said its target for total revenues by 2025 remains at $28 billion.  

Sonic Automotive operates in 23 states with 111 franchised dealerships and 49 EchoPark locations. 

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