CHARLOTTE, N.C. -

Sonic Automotive declared today that the company’s used-vehicle department posted record annual sales volume in 2011 as used-vehicle volume climbed 11 percent for the quarter and 14 percent for the full year.

The used-vehicle performance helped Sonic generate fourth quarter adjusted earnings from continuing operations of $25.4 million for a 46-percent increase over the prior-year adjusted results.

Officials reported adjusted earnings per diluted share increased 43 percent to 43 cents, compared to 30 cents in the prior-year quarter.  

For the full year, Sonic tabulated that its adjusted earnings from continuing operations came in at $1.39 per diluted share, compared to 99 cents per diluted share in the prior year.

Beyond its used-vehicle and earnings growth, Sonic highlighted several other company segments that enjoyed robust results, including:

—Total fourth-quarter revenues jumped 12 percent over prior year quarter and 14 percent for the full year.

—New vehicle retail volume moved 15 percent higher during the fourth quarter, exceeding the industry growth level of 10.

—The company also posted record sales volume within parts and service as revenue ticked 3 percent higher during the fourth quarter and 5 percent for the full year.

—Sonic’s adjusted SG&A to gross profit down 220 bps to 76.6 percent for the quarter.

“Our new and used volume growth continues to exceed industry averages as our team implements our operating playbook strategy,” explained Sonic executive vice president of operations Jeff Dyke

“Our team’s focus on used-car processes has produced double-digit volume growth for 11 consecutive quarters,” Dyke continued. “This translates into a 15-percent compound annual growth rate over the last four years.

“We continue to believe there are significant future growth opportunities throughout the business as we continue the implementation of our strategic initiatives,” he went on to say. “The top line growth continued to drive incremental gross profit dollars which allowed us to further leverage our expense structure with fourth quarter adjusted SG&A to gross profit coming in at 76.6 percent which is the lowest level in several years.”

With such a strong 2011 performance now in the books, Sonic president Scott Smith looked forward to what this year might hold.

“Sonic Automotive wrapped up one of the strongest years in our company’s history,” Smith stressed. “We have proven that our single-minded focus on delivering predictable, repeatable and sustainable processes through our playbooks, coupled with our culture and plain, old-fashioned teamwork can produce superior results without the integration risk of acquisitions.

“We expect to see continued steady growth in the automotive retailing sector and are targeting 2012 new vehicle industry volume of 13.5 million units,” he continued. “We currently expect earnings per share from continuing operations of between $1.55 and $1.65 for the full year 2012.”

Sonic revealed its financial report just a couple of days after the company settled litigation with Mercedes-Benz USA. Auto Remarketing published details about that development here.