Sonic Automotive, Inc. reported a decline in total revenues for the three months ended September 30, 2024, amounting to $3,491.5 million, down from $3,643.5 million in the same period of 2023. This decrease was primarily driven by a reduction in vehicle sales, with total vehicle sales dropping to $2,836.9 million from $3,016.4 million year-over-year. New vehicle sales slightly decreased to $1,589.0 million from $1,596.7 million in the prior year.
Despite the revenue decline, Sonic Automotive achieved a net income of $74.2 million for the third quarter of 2024, an increase from $68.4 million in 2023. Basic earnings per share rose to $2.18 from $1.96, while diluted earnings per share increased to $2.13 from $1.92. For the nine months ended September 30, 2024, total revenues were $10,328.5 million, down from $10,787.6 million in 2023, but net income improved to $157.4 million from $139.5 million.
The Franchised Dealerships Segment reported revenues of $2,887.2 million for Q3 2024, a decrease from $2,959.8 million in Q3 2023, with segment income falling to $51.6 million from $101.5 million. The EchoPark Segment also faced challenges, with revenues declining by 13% for the quarter and 14% year-to-date, primarily due to a decrease in used vehicle sales.
Sonic Automotive experienced operational disruptions due to a cybersecurity incident involving CDK Global, which negatively impacted dealership operations and transaction efficiency during Q2 and Q3 2024. The company reported an estimated negative impact of approximately $30 million on income before taxes due to this incident.
In terms of strategic developments, Sonic Automotive did not make any acquisitions during the nine months ended September 30, 2024, but disposed of two luxury franchised dealerships and two mid-line import franchised dealerships, generating net cash of approximately $8.2 million. The company also reported capital expenditures of approximately $145.9 million for the nine months, funded through existing cash balances.
Sonic Automotive's total assets increased to $5,758.2 million as of September 30, 2024, compared to $5,364.6 million at the end of 2023. The company maintained a strong liquidity position with total available resources of $833.7 million. The effective income tax rate for the third quarter was a benefit of 22.0%, down from an expense of 25.0% in the prior year, reflecting a discrete tax benefit recognized during the period.
About SONIC AUTOMOTIVE INC
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