Sonic ekes out 2Q earnings
Sonic Automotive reported net income of just $26,000 for the second quarter or less than a penny per share. That's dramatically lower than the dealership chain's net income for the same period last year of $9.2 million or 22-cents per share. During an earnings call with investors, Sonic President Scott Smith highlighted the company's operations. He said, "Against the fairly weak but improving economic backdrop, Sonic once again delivered strong operating results. Our ability to stay focused on the basics, on our people and what we can control continues to benefit our overall bottom line." New vehicle sales were down 33 percent from the second quarter the year before. And the company spent about $14 million to restructure debt and cover losses from GM franchises that are closing. In the spring, Sonic was on the brink of bankruptcy after being hammered by stagnant auto sales. In May, creditors agreed to back the company and it posted earnings in the first quarter.