Sonic Automotive Inc.’s net income for the fourth-quarter more than doubled compared to the same period a year ago. The auto dealership group from Charlotte, N.C., posted $16.5 million in net income during the quarter, a significant increase from $7.0 million during the fourth quarter of 2009.
Before one-time charges are considered, Sonic had a $64.3 million gain for the quarter compared with $14.2 million last year. Revenues for the quarter increased by 17% to $975.8 million.
Sonic asserted that it posted strong gains across all business lines. New vehicle volume rose by 18%, used-vehicle business went up 17%, and parts/service revenue climbed 8%.
In a statement, Sonic President Scott Smith said that the company predicts to have continued growth in new and used vehicle sales in both domestic and luxury/import dealerships as its eCommerce and other advertising strategies take effect. Smith added that the fourth quarter was its “most profitable month in the history of [the] company."
Thomson Reuters I/B/E/S said that Sonic, the third-largest U.S. auto dealer group, posted fourth-quarter adjusted earnings per share from continuing operations of 30 cents a share.
This exceeded analysts' expectations of 26 cents a share. Sonic posted a net income of $51.5 million in 2010, compared with $32.2 million in 2009. Sonic also posted 2010 revenue of $3.4 billion, up from $3.0 billion in 2009. [via autonews - sub. required]