(RTTNews) - Sonic Automotive Inc. (SAH: News ) Tuesday reported a swing to profit for the third quarter from a loss in the previous year on lower expenses and the absence of impairment charges incurred in the year ago quarter.

Automotive retailer Sonic Automotive Inc., reported a third quarter net income of $15.59 million or $0.17 per share, compared to a loss of $26.97 million or $0.67 per share last year.

Income from continuing operations for the quarter were $18.48 million or $0.22 per share, compared to a loss of $15.07 million or $0.38 per share a year ago.

Results for the prior year quarter include the after-tax effect of impairment charges, lease exit accruals and hurricane damage of $0.53 per share.

On average, five analysts polled by Thomson Reuters expected the company to report a profit of $0.24 per share for the quarter.

Total revenues for the quarter were $1.52 billion compared to $1.62 billion last year. Analysts expected revenues of $1.48 billion for the quarter.

The company said its used vehicle volume continued to grow throughout the quarter despite the heavy emphasis on new vehicle sales stemming from the CARS program. Parts and service revenue for the third quarter was flat with the prior year quarter, with gross margin at 50.6%, an increase from 49.6% recorded in the corresponding quarter last year.
Overall used vehicle unit volume increased 25% and total used vehicle revenue grew over 18% for the third quarter, compared to the third quarter of 2008. Certified pre-owned business was at 34% of overall used vehicle volume.

SG&A expenses for the quarter was $203.69 million, a decrease from $220.41 million in the prior year quarter. Impairment charges declined to $0.34 million from $25.48 million in the prior year quarter.

Net income for the nine-month period were $17.29 million or $0.26 per share, compared to a loss of $5.12 million or loss of $0.13 per share in the previous year period.

For the nine-month period, the company recorded total revenue of $4.18billion compared to $5.11billion in the previous year period.

SAH is currently being traded at $10.81 down $1.69 or 13.52% on a volume of 3.52million shares on the NYSE.

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by RTT Staff Writer

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