Sonic Automotive Inc. set records for revenue and gross profit during the fourth quarter of 2022 but posted a $190.9 million net loss that was dragged down by hefty charges for writing down the asset value of the group's EchoPark used-only and franchised dealership businesses.
Sonic, of Charlotte, N.C., on Wednesday posted $3.59 billion in revenue, its best showing for any quarter in its history. It also reported $576.1 million in gross profit, a fourth-quarter record.
But net income was hurt by a $320.4 million noncash impairment charge — $115.5 million for the company's franchised segment and $204.9 million for the used-only EchoPark unit. Sonic spokeswoman Maren McGrane wrote in an email that "substantially all of the impairment is related to technical accounting requirements around impairment of goodwill and franchise assets."
Adjusted for the impairment and other one-time factors, Sonic's fourth-quarter net income was $97.8 million, down 14 percent.