DETROIT - Sonic Automotive, the third-largest U.S dealership group, today posted a quarterly profit that fell short of Wall Street estimates but beat year-ago results, Reuters reported. First-quarter net income totaled $4.15 million or 8 cents per share. Revenue rose 13 percent to $1.56 billion. "Not long ago, our stock price was below $1 per share, and there was a lot of uncertainty about our company," Sonic President Scott Smith said during a conference call with analysts. On an operating basis and excluding one-time items, Sonic posted a profit of 14 cents a share, compared with analysts' expectations of 19 cents, according to Thomson Reuters I/B/E/S. Adjusted earnings on continuing operations totaled 14 cents per diluted share, up from 10 cents a year ago. The first-quarter results for Sonic, which was on the verge of bankruptcy less than a year ago, followed last year's fourth-quarter results, which saw the retailer get back into the black. Last spring, the company restructured debts and was allowed to postpone a $90 million debt payment until 2012. Also mentioned in the first-quarter report and during a conference call:
Overall new-vehicle retail volume was up 10 percent, and used-vehicle retail volume was up 25 percent for the first quarter compared with the same time last year. It was Sonic's fourth straight quarter of used-vehicle sales growth.
Service and parts revenue for the first quarter was up about 3 percent compared with the same quarter last year.
Sonic's forecast is for U.S. sales of 11 million vehicles this year -- and sales performed at that level during the first quarter. Some analysts are forecasting as high as 13 million light-vehicle sales this year.
