- Language: English
- Published: August 2013
- Region: Kuwait
Summary: Sonic Automotive Inc. Jan 12
- Published: January 2012
- Standard & Poors
The ratings on Charlotte, N.C.-based Sonic Automotive Inc. reflect Standard & Poor's Ratings Services' view of Sonic's business risk profile as "fair" (according to our criteria), because we expect its resilient business model (with a diverse revenue stream and variable cost structure) to support continued good profitability. High-margin revenue generated by Sonic's parts and service (P&S) operations-- 48% of total gross profit in third quarter of 2011--is relatively stable compared with vehicle sales revenue, which can be volatile. The P&S business supported revenues and margins in the last recession, while same-store vehicle unit sales declined and showed margin pressure from weak pricing. For the third quarter of 2011, Sonic's revenue stream consisted of new-vehicle retail sales (53%), used-vehicle sales (29%),...
Companies mentioned in this report are: Sonic Automotive Inc.
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Sonic Automotive Inc.