Sonic Automotive, Inc (SAH) has reported 31.67 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $18.11 million, or $0.40 a share in the quarter, compared with $26.50 million, or $0.52 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $21 million, or $0.46 a share compared with $26.49 million or $0.52 a share, a year ago. Revenue during the quarter went up marginally by 2.55 percent to $2,557.93 million from $2,494.41 million in the previous year period. Gross margin for the quarter contracted 40 basis points over the previous year period to 14.04 percent. Total expenses were 98.01 percent of quarterly revenues, up from 97.48 percent for the same period last year. That has resulted in a contraction of 53 basis points in operating margin to 1.99 percent.
Operating income for the quarter was $50.93 million, compared with $62.92 million in the previous year period.
B. Scott Smith, Sonic’s Chief Executive Officer, noted, “We continued to execute our long-term strategies during a challenging third quarter. Expansion of EchoPark is continuing with two new stores operating during the quarter. We are very excited that combined, our original three stores generated positive cash during the third quarter. Our sixth Denver market store, located in Colorado Springs, will open during the first half of 2017. In addition, we will break ground on our first Texas locations in the first half of 2017.”
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