CHARLOTTE, N.C. -

In the first three months of 2012, Sonic Automotive lifted used retail sales by more than 6 percent and increased its used revenue by 9 percent as the retailer achieved record first-quarter revenues.

Overall, earnings from continuing operations reached $19.5 million, a 24-percent year-over-year hike. Net income was at $20.5 million, compared to $15.0 million in the first quarter of 2011.

Revenues approached $2 billion and were up 9.3 percent year-over-year. This marked record revenue growth, as well.

“As a result of our operating disciplines, we achieved record first quarter revenues of nearly $2 billion with our current complement of stores,” explained Jeff Dyke, Sonic’s executive vice president of operations.

“Our new-vehicle retail unit volume, which increased 11.2 percent versus the first quarter of 2011, outpaced the new vehicle retail industry volume increase,” he continued. “We are excited about the possibilities of further improvement resulting from our continued focus on efficient execution of our selling and customer service processes.”

On the used-car side of the business, Sonic pulled in $517.1 million in revenue, up from $474.6 million in the year-ago period. It moved 26,547 used vehicles, up from 24,895 in the first quarter of 2011.

Sonic’s wholesale revenue came in at $45.3 million, compared to $35.0 million in the year-ago period. Sonic moved 7,526 wholesale units during the first quarter, compared to 5,583 a year ago.

New-vehicle retail revenue was up from $908.9 million to $1.0 billion, while fleet revenue dipped from $63.6 million to $45.9 million.

The company sold 29,685 new retail units, up 11.2 percent year-over-year. Fleet sales were at 1,705 units, down from 2,488 fleet sales a year ago.

Parts, service and collision repair revenue reached $301.7 million, compared to $287.1 million in the first quarter of 2011. F&I/other revenue climbed from $49.1 million to $59.2 million.

“We are pleased with this quarter’s results. Our overall profitability increased significantly from the prior year quarter due to our strong revenue growth and continued improvement in our SG&A to gross profit metrics,” said Sonic president Scott Smith.

“The improvements in these metrics were achieved as we continue substantial investment in our information technology and training initiatives,” he added.
“We have cultivated a culture and team that are mature and stable, allowing us to embrace and execute these processes and technologies.

“Our goal remains the same, develop predictable, repeatable and sustainable processes through the use of innovative technologies and operating playbooks to create a competitive advantage benefiting Sonic Automotive now and in the years to come,” Smith concluded.