Sonic Automotive Inc. (NYSE:SAH) Q2 2015 Earnings Conference Call - Preliminary Transcript

Jul 20, 2015 • 10:00 am ET


Sonic Automotive Inc. (NYSE:SAH) Q2 2015 Earnings Conference Call - Preliminary Transcript


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Good morning and welcome to the Sonic Automotive Second Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer period. [Operator Instructions] As a reminder ladies and gentlemen, this call is being recorded today, Monday, July 20, 2015. Presentation materials, which management will be reviewing on this conference call, can be accessed on the company's website at by selecting Investor Relations under our company dropdown box, and then choosing Webcasts & Presentations on the right side of the page.

At this time, I would like to refer to the Safe Harbor statement under the Private Securities Litigation Reform Act of 1995. During the conference call, management may discuss financial projections, information or expectations about the company's products or markets or otherwise make statements about the future. Such statements are forward-looking statements and subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These risks and uncertainties are detailed in the company's filings with the Securities and Exchange Commission. Thank you. I would now like to introduce Mr. Scott Smith, President and Chief Strategic Officer, Sonic Automotive. Mr. Smith, you may begin the conference.

Scott Smith

Thank you. Good morning ladies and gentlemen. I am Scott Smith, company's President and Chief Strategic Officer. Joining me on the call today are David Smith, our Vice Chairman Heath Byrd, our CFO Jeff Dyke, our Executive Vice President of Operations and C.G. Saffer, our Chief Accounting Officer. I'll start today's call with an overview of the strategic initiatives, then turn the call over to Heath for a review of our Q2 financials, followed by Jeff with a look at our operating performance. We'll then open the call for your questions. If you'll turn to next slide please.

Our strategic focus has been consistent the last several years, growing our own base business owning our real estate returning capital to shareholders. This strategic focus will continue for the foreseeable future. As most people who follow the company are aware, Sonic Automotive is growing its base business through very unique, bold avenues that I believe will give us a competitive advantage and differentiate Sonic from others in the retail automotive space to a customer centric, One Sonic-One Experience and through our pre-owned specialty stores called EchoPark. Next slide please.

One Sonic-One Experience, for those that have been following us, it is doing very well. It's essentially an exercise in brand building. The building of brand is centered around the customer. The objective is to put the power in the customers' hands where they can enjoy the automotive purchasing experience with one associate, at one price, in one hour. We believe that our experience will be unique in the industry and it will improve transparency and increase trust and ultimately profitability. One Sonic-One Experience has been fully implemented in Charlotte since Q4 of '14. JD is going to talk about it a little bit