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SAH Sonic Automotive

Sonic Automotive, Inc. operates as a automotive retailer. Its services include sales of both new and used cars and light trucks, sales of replacement parts and performance of vehicle maintenance, warranty, paint and repair services and arrangement of extended service contracts, financing, insurance, vehicle protection products and other aftermarket products for automotive customers. The company operates through the following segments: Franchised Dealerships and EchoPark. The Franchised Dealerships segment provides comprehensive services, which include sales of both new and used cars and light trucks, sales of replacement parts and performance of vehicle maintenance, manufacturer warranty repairs, and paint and collision repair services. The EchoPark segment sales used cars and light trucks. Sonic Automotive was founded by Ollen Bruton Smith and Bryan Scott Smith in January 1997 and is headquartered in Charlotte, NC.

Company profile

Ticker
SAH
Exchange
CEO
David Smith
Employees
Incorporated
Location
Fiscal year end
SEC CIK
IRS number
562010790

SAH stock data

(
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Calendar

29 Apr 21
24 Jun 21
31 Dec 21
Quarter (USD)
Mar 21 Dec 20 Sep 20 Jun 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19 Dec 18 Dec 17
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from company earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 77.23M 77.23M 77.23M 77.23M 77.23M 77.23M
Cash burn (monthly) 31.03M 8.71M (positive/no burn) (positive/no burn) (positive/no burn) (positive/no burn)
Cash used (since last report) 86.5M 24.29M n/a n/a n/a n/a
Cash remaining -9.26M 52.94M n/a n/a n/a n/a
Runway (months of cash) -0.3 6.1 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
29 Apr 21 Belk William I Class A Common Stock Grant Aquire A No No 0 2,905 0 89,578
29 Apr 21 Brooks William R Class A Common Stock Grant Aquire A No No 0 2,905 0 99,943
29 Apr 21 Doolan Victor H Class A Common Stock Grant Aquire A No No 0 2,905 0 34,993
29 Apr 21 Harris John W. III Class A Common Stock Grant Aquire A No No 0 2,905 0 44,441
29 Apr 21 Heller H Robert Class A Common Stock Grant Aquire A No No 0 2,905 0 95,578

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

78.9% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 176 183 -3.8%
Opened positions 23 32 -28.1%
Closed positions 30 24 +25.0%
Increased positions 52 54 -3.7%
Reduced positions 74 73 +1.4%
13F shares
Current Prev Q Change
Total value 1.86B 940M +97.7%
Total shares 23.34M 24.36M -4.2%
Total puts 14.4K 31.3K -54.0%
Total calls 30.5K 32.6K -6.4%
Total put/call ratio 0.5 1.0 -50.8%
Largest owners
Shares Value Change
BLK Blackrock 3.92M $194.22M +6.4%
Vanguard 2.37M $117.26M +3.6%
Dimensional Fund Advisors 2.07M $102.46M -11.3%
WHG Westwood 1.32M $65.2M +324.7%
Victory Capital Management 1.24M $61.39M +4.0%
LSV Asset Management 958.73K $47.52M -5.3%
STT State Street 907.9K $45.1M -4.7%
Citadel Advisors 630.27K $31.24M +74.7%
MCQEF Macquarie 553.17K $27.42M -30.0%
Hotchkis & Wiley Capital Management 481.11K $23.85M -2.3%
Largest transactions
Shares Bought/sold Change
WHG Westwood 1.32M +1.01M +324.7%
NTRS Northern Trust 437.65K -766.18K -63.6%
GS Goldman Sachs 237.11K -441.1K -65.0%
BK Bank Of New York Mellon 426.49K -313.99K -42.4%
Capital Growth Management 0 -290K EXIT
PRU Prudential Financial 63.6K -281.7K -81.6%
Citadel Advisors 630.27K +269.56K +74.7%
Dimensional Fund Advisors 2.07M -263.51K -11.3%
MCQEF Macquarie 553.17K -237.54K -30.0%
BLK Blackrock 3.92M +235.52K +6.4%

Financial report summary

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Risks
  • Our investment in new business strategies, services and technologies is inherently risky, and could disrupt our ongoing business or have a material adverse effect on our overall business and results of operations.
  • Our ability to make acquisitions, execute our growth strategy for our EchoPark business and grow organically may be restricted by our ability to obtain capital, the terms of the instruments governing our long-term debt and the need obtain consent from manufacturers.
  • We may not adequately anticipate all of the demands that growth through acquisitions or brand development will impose. Failure to effectively integrate acquired businesses with our existing operations could adversely affect our future operating results.
  • We may not be able to determine the actual financial condition of dealerships we acquire until after we complete the acquisition and take control of the dealerships.
  • Our business could be adversely affected by the effects of pandemics like the COVID-19 pandemic and other natural disasters.
  • Our facilities and operations are subject to extensive governmental laws and regulations. If we are found to be in violation of, or subject to liabilities under, any of these laws or regulations or if new laws or regulations are enacted that adversely affect our operations, then our business, operating results, financial condition, cash flows and prospects could suffer.
  • Increasing competition among automotive retailers and the use of the internet reduces our profit margins on vehicle sales and related businesses.
  • The effect of companies entering into the automotive space may affect our ability to grow or maintain the business over the long term.
  • Our dealers depend upon new vehicle sales and, therefore, their success depends in large part upon consumer demand for and manufacturer supply of particular vehicles.
  • Our business is dependent upon access to quality sources of used vehicle inventory. Our business sales and results of operations could be materially adversely affected by obstacles that prevent the efficient acquisition and liquidation of used vehicle inventory.
  • A decline of available financing in the consumer automotive lending market may adversely affect our vehicle unit sales volume.
  • Our business may be adversely affected by import product restrictions and foreign trade risks that may impair our ability to sell foreign vehicles profitably.
  • Our operations may be adversely affected if one or more of our manufacturer franchise or dealer agreements is terminated or not renewed.
  • Our failure to meet a manufacturer’s customer satisfaction, financial and sales performance or facility requirements may adversely affect our profitability and our ability to acquire new dealerships.
  • If state dealer laws are repealed or weakened, our dealerships will be more susceptible to termination, non-renewal or renegotiation of their franchise and dealer agreements.
  • Our sales volume and profit margin on each sale may be materially adversely affected if manufacturers discontinue or change their incentive programs.
  • Our sales volume may be materially adversely affected if manufacturer captives change their customer financing programs or are unable to provide floor plan financing.
  • Our parts and service sales volume and margins are dependent on manufacturer warranty programs.
  • Adverse conditions affecting one or more key manufacturers or lenders may negatively impact our results of operations.
  • Manufacturer stock ownership restrictions may impair our ability to maintain or renew franchise or dealer agreements or to issue additional equity.
  • A decline in the quality of vehicles we sell, or consumers’ perception of the quality of those vehicles, may adversely affect our business.
  • Our significant indebtedness could materially adversely affect our financial health, limit our ability to finance future acquisitions, expansion plans and capital expenditures and prevent us from fulfilling our financial obligations.
  • We may not have sufficient funds to meet our obligation to repay all or a substantial portion of the outstanding principal amount of our indebtedness when it becomes due.
  • Our ability to make interest and principal payments when due to holders of our debt securities depends upon our future performance and our receipt of sufficient funds from our subsidiaries.
  • We depend on the performance of subleases to offset costs related to certain of our lease agreements.
  • Our use of hedging transactions could limit our financial gains or result in financial losses.
  • Reforms to and uncertainty regarding LIBOR may adversely affect our business, financial condition and results of operations.
  • Potential conflicts of interest between us and our officers or directors could adversely affect our future performance.
  • Our business will be harmed if overall consumer demand suffers from a severe or sustained downturn.
  • The outcome of legal and administrative proceedings we are or may become involved in could have a material adverse effect on our business, financial condition, results of operations, cash flows or prospects.
  • Climate change legislation or regulations restricting emission of greenhouse gases could result in increased operating costs and reduced demand for the vehicles we sell.
  • The loss of key personnel and limited management and personnel resources could adversely affect our operations and growth.
  • Natural disasters, adverse weather and other events can disrupt our business.
  • Security breaches and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer.
  • We may be subject to substantial withdrawal liability assessments in the future related to a multiemployer pension plan to which certain of our dealerships make contributions pursuant to collective bargaining agreements.
  • Tax positions may exist related to our tax filings that could be challenged by governmental agencies and result in higher income tax expenses and affect our overall liquidity if we are unable to successfully defend these tax positions.
  • Impairment of our goodwill could have a material adverse impact on our earnings.
Management Discussion
  • Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
  • Unless otherwise noted, we present the discussion in this Management’s Discussion and Analysis of Financial Condition and Results of Operations on a consolidated basis. To the extent that we believe a discussion of the differences among reportable segments will enhance a reader’s understanding of our financial condition, cash flows and other changes in financial condition and results of operations, the differences are discussed separately.
  • We are one of the largest automotive retailers in the U.S. (as measured by reported total revenue). As a result of the way we manage our business, we had two reportable segments as of March 31, 2021: (1) the Franchised Dealerships Segment and (2) the EchoPark Segment. For management and operational reporting purposes, we group certain businesses together that share management and inventory (principally used vehicles) into “stores.” As of March 31, 2021, we operated 84 stores in the Franchised Dealerships Segment and 21 stores in the EchoPark Segment. The Franchised Dealerships Segment consists of 96 new vehicle franchises (representing 21 different brands of cars and light trucks) and 14 collision repair centers in 12 states.
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