Sonic Automotive Inc. (SAH) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $0.54 million, or $ 0.01 a share in the quarter, against a net profit of $14.62 million, or $0.31 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $9.79 million, or $0.22 a share compared with $18 million or $0.38 a share, a year ago.

Revenue during the quarter went up marginally by 2.38 percent to $2,287.82 million from $2,234.63 million in the previous year period. Gross margin for the quarter contracted 13 basis points over the previous year period to 15.31 percent. Total expenses were 98.41 percent of quarterly revenues, up from 98.11 percent for the same period last year. That has resulted in a contraction of 30 basis points in operating margin to 1.59 percent.

Operating income for the quarter was $36.45 million, compared with $42.30 million in the previous year period.

B. Scott Smith, the Company’s Chief Executive Officer, noted, "We continue executing strategies that yield long-term benefits. We believe the refinancing of our 7.0% Notes with a 6.125% Note issuance will prove to be a big win for us as we expect interest rates to continue to gradually rise over the next several years. Although the charges incurred during the quarter relating to the redemption depressed our reported earnings, we will enjoy the benefits of this long-term financing over the next ten years. Moving forward, we are excited about the upcoming opening of our new Audi store in Pensacola, Florida and the introduction of the EchoPark® brand to the Texas market in 2017."