Sonic Automotive’s fixed operations business (parts, service and collision repair) posted $341.43 million in revenue for the first quarter of 2019 — a decrease of $10.33 million, or 2.9%, compared to the previous year. However, on a same-store basis, fixed operations revenue increased 2.3% to $335.19 million. This breaks down as …
• Same-store customer-pay revenue grew 4.1% to $136.09 million.
• Same-store warranty revenue rose 5.0% to $67.44 million.
• Same-store wholesale parts revenue declined 3.6% to $38.58 million.
• Same-store internal, sublet and other revenue increased 0.5% to $93.08 million.
Fixed operations gross profit decreased 3.8% to $163.24 million but increased 2.0% to $160.01 million on a same-store basis. This breaks down as …
• Same-store customer-pay gross profit rose 5.2% to $73.44 million.
• Same-store warranty gross profit grew 4.8% to $37.61 million.
• Same-store wholesale parts gross profit declined 2.3% to $6.64 million.
• Same-store internal, sublet and other gross profit decreased 4.6% to $42.33 million.
As a percent of revenue, total same-store fixed operations gross profit slipped 20 basis points to 47.7%.
For the full year, management maintains its outlook calling for +3% to +5% same-store sales growth for fixed operations.
Charlotte-based Sonic is one of the largest automotive retailers in the United States as measured by total revenue. As of March 31, 2019, the company operated 92 stores in its franchised dealerships segment and eight stores in the EchoPark segment. The franchised dealerships unit consists of 104 new vehicle franchises (representing 23 different brands of cars and light trucks) and 15 collision repair centers across 13 states.