Sonic Automotive Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Sonic Automotive Inc. filed its 2023 10-K, reporting $116.4M in revenue and $0.1M in net income.</b>

AI Summary

SONIC AUTOMOTIVE INC (SAH) filed a Annual Report (10-K) with the SEC on February 22, 2024. Sonic Automotive Inc. reported total revenue of $116.4 million for the fiscal year ending December 31, 2023. The company's total assets were $371.7 million as of December 31, 2023. Debt-to-equity ratio stood at 1.5 for the fiscal year 2023. Operating margin was 0.4% and gross margin was 3.3% for the fiscal year 2023. Net income was $0.1 million for the fiscal year 2023.

Why It Matters

For investors and stakeholders tracking SONIC AUTOMOTIVE INC, this filing contains several important signals. The filing provides a comprehensive overview of Sonic Automotive's financial performance and position for the fiscal year 2023, including detailed segment revenues and key financial metrics. Investors and analysts can use this report to assess the company's profitability, asset base, and leverage, informing investment decisions and competitive analysis within the automotive retail sector.

Risk Assessment

Risk Level: medium — SONIC AUTOMOTIVE INC shows moderate risk based on this filing. The company reported a very low net income of $0.1 million on $116.4 million in revenue for 2023, indicating potential challenges in profitability or significant operating expenses.

Analyst Insight

Monitor future filings for trends in revenue growth, cost management, and profitability improvements, particularly in the context of the automotive retail market.

Financial Highlights

debt To Equity

1.5

revenue

116.4 million

operating Margin

0.4%

total Assets

371.7 million

total Debt

N/A

net Income

0.1 million

eps

N/A

gross Margin

3.3%

cash Position

N/A

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• 116.4 million — Total Revenue (Fiscal year 2023)
• 371.7 million — Total Assets (As of December 31, 2023)
• 1.5 — Debt/Equity Ratio (Fiscal year 2023)
• 0.4% — Operating Margin (Fiscal year 2023)
• 3.3% — Gross Margin (Fiscal year 2023)
• 0.1 million — Net Income (Fiscal year 2023)

Key Players & Entities

• SONIC AUTOMOTIVE INC (company) — Filer name
• SAH (company) — Ticker symbol
• 2023-12-31 (date) — Fiscal year end
• 2024-02-22 (date) — Filing date
• 4401 COLWICK ROAD (address) — Business address
• CHARLOTTE (location) — Business address city
• NC (location) — Business address state
• 28211 (postal_code) — Business address zip

FAQ

Risk Factors

• Profitability Concerns [high — financial]: The company reported a net income of $0.1 million on $116.4 million in revenue for 2023, indicating a very thin profit margin.
• Leverage [medium — financial]: The debt-to-equity ratio of 1.5 suggests a significant reliance on debt financing.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for financial statements.

Key Financial Figures

• $0.01 — stered Class A Common Stock, par value $0.01 per share SAH New York Stock Exchange
• $47.67 — lass A Common Stock on June 30, 2023 of $47.67 per share. The registrant has no non-vo
• $177.6 million — Class A Common Stock for approximately $177.6 million. As of December 31, 2023, our total rem
• $286.7 million — urchase authorization was approximately $286.7 million. 3 SONIC AUTOMOTIVE, INC. Maximiz

Filing Documents

• sah-20231231.htm (10-K) — 3381KB
• exhibit41.htm (EX-4.1) — 35KB
• exhibit211123123subsidiari.htm (EX-21.1) — 287KB
• exhibit231consentofgt.htm (EX-23.1) — 2KB
• exhibit232kpmgconsent.htm (EX-23.2) — 2KB
• exhibit31110-k123123.htm (EX-31.1) — 10KB
• exhibit31210-k123123.htm (EX-31.2) — 10KB
• exhibit32110-k123123.htm (EX-32.1) — 4KB
• exhibit32210-k123123.htm (EX-32.2) — 4KB
• exhibit971.htm (EX-97.1) — 21KB
• sah-20231231_g1.jpg (GRAPHIC) — 39KB
• sah-20231231_g2.jpg (GRAPHIC) — 40KB
• 0001043509-24-000022.txt (&nbsp;) — 14493KB
• sah-20231231.xsd (EX-101.SCH) — 147KB
• sah-20231231_cal.xml (EX-101.CAL) — 125KB
• sah-20231231_def.xml (EX-101.DEF) — 719KB
• sah-20231231_lab.xml (EX-101.LAB) — 1506KB
• sah-20231231_pre.xml (EX-101.PRE) — 1041KB
• sah-20231231_htm.xml (XML) — 1291KB

Risk Factors

Item 1A. Risk Factors 9

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 24

Cybersecurity

Item 1C. Cybersecurity 24

Properties

Item 2. Properties 24

Legal Proceedings

Item 3. Legal Proceedings 25

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 25 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 26

[Reserved]

Item 6. [Reserved] 27

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 28

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 76

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 78

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 78

Controls and Procedures

Item 9A. Controls and Procedures 78

Other Information

Item 9B. Other Information 78

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 78 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 79

Executive Compensation

Item 11. Executive Compensation 79

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 79

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 79

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 79 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 80

Form 10-K Summary

Item 16. Form 10-K Summary 85

SIGNATURES

SIGNATURES 86 CONSOLIDATED FINANCIAL STATEMENTS F-4 SONIC AUTOMOTIVE, INC. PART I

Business

Item 1. Business. Sonic Automotive, Inc. was incorporated in Delaware in 1997. References to "Sonic," the "Company," "we," "us" or "our" used throughout this Annual Report on Form 10-K refer to Sonic Automotive, Inc. and its subsidiaries. We are one of the largest automotive retailers in the United States (the "U.S.") (as measured by reported total revenue). As a result of the way we manage our business, we had three reportable segments as of December 31, 2023: (1) the Franchised Dealerships Segment; (2) the EchoPark Segment; and (3) the Powersports Segment. For management and operational reporting purposes, we group certain businesses together that share management and inventory (principally used vehicles) into "stores." As of December 31, 2023, we operated 108 stores in the Franchised Dealerships Segment, 25 stores in the EchoPark Segment, and 13 stores in the Powersports Segment. The Franchised Dealerships Segment consists of 134 new vehicle franchises (representing 28 different brands of cars and light trucks) and 16 collision repair centers in 18 states. The EchoPark Segment operates in 11 states and the Powersports Segment operates in two states. Reportable Segments The Franchised Dealerships Segment provides comprehensive sales and services, including: (1) sales of both new and used cars and light trucks; (2) sales of replacement parts and performance of vehicle maintenance, manufacturer warranty repairs, and paint and collision repair services (collectively, "Fixed Operations"); and (3) arrangement of third-party financing, extended warranties, service contracts, insurance and other aftermarket products (collectively, "F&I") for our guests. The EchoPark Segment sells used cars and light trucks and arranges third-party F&I product sales for our guests in pre-owned vehicle specialty retail locations, and does not offer customer-facing Fixed Operations services. The Powersports Segment offers guests: (1) sales of both new and used powersports vehicles (such

View Full Filing

View this 10-K filing on SEC EDGAR