CHARLOTTE, N.C., April 3 /PRNewswire-FirstCall/ -- Sonic Automotive, Inc. , a leading automotive retailer, earlier this week reported Q4 2008 earnings. In a statement to clarify disclosures in its earnings release related to the write down of goodwill and franchise impairment, Sonic Automotive's President, Mr. B. Scott Smith, stated, "Sonic Automotive was profitable in 2008 with positive income from continuing operations of $42.2 million, or $1.05 per diluted share, for the full year 2008, before giving effect to non-cash goodwill and franchise impairment charges."
To further clarify, Smith stated, "Due to the current market conditions and the resulting decline in our stock price, we were required under accounting rules to record non-cash goodwill and franchise impairment charges for the quarter ended December 31, 2008. We, along with most public automotive retailers, were required to write down our goodwill in 2008."
"Currently, our impending debt maturity is our biggest focus. The situation that we find ourselves in is primarily the result of weak capital market conditions and the current inability to look to the capital markets to refinance our existing debt maturities."
"Our dealerships continue to perform well, and we are generating cash, despite a very challenging retail environment. I believe that our operations compare favorably to our competitors. We have the best operating team in our company's history. We will continue working with our stakeholders to resolve our debt maturity issue."
About Sonic Automotive
Sonic Automotive, Inc., a Fortune 300 company based in Charlotte, N.C., is one of the largest automotive retailers in the United States operating 164 franchises. Sonic can be reached on the Web at http://www.sonicautomotive.com/.
Sonic Automotive, Inc. Results of Operations (Unaudited) (in thousands, except per share, unit data and percentage amounts) Three Months Ended Twelve Months Ended 12/31/2008 12/31/2007 12/31/2008 12/31/2007 Revenues New retail vehicles $650,765 $996,684 $3,245,451 $3,851,589 Fleet vehicles 27,647 58,129 192,386 224,802 Total new vehicles 678,412 1,054,813 3,437,837 4,076,391 Used vehicles 271,432 316,560 1,213,263 1,200,154 Wholesale vehicles 36,645 74,547 235,110 326,540 Total vehicles 986,489 1,445,920 4,886,210 5,603,085 Parts, service and collision repair 237,775 248,301 983,259 973,233 Finance, insurance and other 31,342 46,054 165,307 181,053 Total revenues 1,255,606 1,740,275 6,034,776 6,757,371 Total gross profit 211,687 269,093 985,539 1,066,084 SG&A expenses (195,014) (194,834) (815,083) (790,221) Impairment charges (789,944) (269) (811,784) (958) Depreciation (8,997) (5,918) (31,680) (22,576) Operating income (782,268) 68,072 (673,008) 252,329 Interest expense, floor plan (9,620) (13,703) (38,263) (54,143) Interest expense, other (14,833) (10,146) (54,430) (36,411) Other (expense) / income 650 (37) 726 44 Income / (loss) from continuing operations before taxes (806,071) 44,186 (764,975) 161,819 Income taxes 147,287 (17,379) 130,848 (63,621) Income / (loss) from continuing operations (658,784) 26,807 (634,127) 98,198 Discontinued operations: Income / (loss) from operations and the sale of discontinued franchises (22,148) (3,087) (55,954) 809 Income tax benefit / (expense) (4,665) (684) 4,154 (3,505) Loss from discontinued operations (26,813) (3,771) (51,800) (2,696) Net income/ (loss) $(685,597) $23,036 $(685,927) $95,502 Diluted: Weighted average common shares outstanding 40,087 44,894 40,356 46,941 Earnings / (loss) per share from continuing operations ($16.43) $0.62 ($15.71) $2.17 Loss per share from discontinued operations ($0.67) ($0.08) ($1.29) ($0.04) Earnings / (loss) per share ($17.10) $0.54 ($17.00) $2.13 Gross Margin Data (Continuing Operations): Retail new vehicles 6.8% 7.3% 7.1% 7.5% Fleet vehicles 1.8% 0.7% 1.3% 0.8% Total new vehicles 6.6% 7.0% 6.8% 7.1% Used vehicles retail 7.0% 8.4% 8.5% 9.1% Total vehicles retail 6.7% 7.3% 7.2% 7.6% Wholesale vehicles (6.9%) (2.3%) (2.8%) (1.4%) Parts, service and collision repair 50.1% 50.3% 49.8% 50.4% Finance, insurance and other 100.0% 100.0% 100.0% 100.0% Overall gross margin 16.9% 15.5% 16.3% 15.8% SG&A Expenses (Continuing Operations): Personnel $98,214 $108,170 $443,669 $447,704 Advertising 10,556 14,998 50,866 55,849 Facility rent 21,316 21,771 85,260 85,840 Other 64,928 49,895 235,288 200,828 Total $195,014 $194,834 $815,083 $790,221 SG&A Expenses as % of Gross Profit Personnel 46.4% 40.2% 45.0% 42.0% Advertising 5.0% 5.6% 5.2% 5.2% Facility rent 10.1% 8.1% 8.7% 8.1% Other 30.7% 18.6% 23.9% 18.8% Total 92.1% 72.4% 82.7% 74.1% Operating Margin % (62.3%) 3.9% (11.2%) 3.7% Three Months Ended Twelve Months Ended Unit Data (Continuing Operations): 12/31/2008 12/31/2007 12/31/2008 12/31/2007 New retail units 18,565 27,657 94,570 111,171 Fleet units 1,087 2,073 7,618 9,341 New units 19,652 29,730 102,188 120,512 Used units 13,796 15,027 60,124 58,861 Total units retailed 33,448 44,757 162,312 179,373 Wholesale units 5,489 8,239 30,035 35,631 Average price per unit: New retail vehicles $35,053 $36,037 $34,318 $34,646 Fleet vehicles 25,434 28,041 25,254 24,066 Total new vehicles 34,521 35,480 33,642 33,826 Used vehicles 19,675 21,066 20,179 20,390 Wholesale vehicles 6,676 9,048 7,828 9,164 Other Data: Same store revenue percentage changes: New retail (35.1%) (19.3%) Fleet (52.4%) (25.5%) Total New Vehicles (36.1%) (19.7%) Used (14.6%) (2.2%) Parts, service and collision repair (4.7%) (2.2%) Finance, insurance and other (31.1%) (10.2%) Total (28.2%) (14.3%) Balance Sheet Data: 12/31/2008 12/31/2007 ASSETS Current Assets: Cash and cash equivalents $6,971 $16,514 Receivables, net 247,025 347,309 Inventories 916,837 1,093,017 Assets held for sale 406,576 87,342 Other current assets 16,822 35,879 Total current assets 1,594,231 1,580,061 Property and Equipment, Net 369,892 286,591 Goodwill, Net 327,007 1,276,074 Other Intangibles, Net 82,328 111,342 Other Assets 37,243 28,676 TOTAL ASSETS $2,410,701 $3,282,744 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Floor plan notes payable $921,023 $1,125,670 Other current liabilities 277,938 247,658 Liabilities associated with assets held for sale 199,482 48,592 Current maturities of long-term debt 751,337 4,197 Total current liabilities 2,149,780 1,426,117 LONG-TERM DEBT - 697,800 OTHER LONG-TERM LIABILITIES 71,132 83,829 DEFERRED INCOME TAXES - 144,170 STOCKHOLDERS' EQUITY 189,789 930,828 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,410,701 $3,282,744 Balance Sheet Ratios: Current Ratio 0.74 1.11 Debt to Total Capital, Net of Cash 79.7% 42.4% Sonic Automotive, Inc. Results of Operations (Unaudited) (in thousands, except per share, unit data and percentage amounts) Twelve Months Ended As Reported As Adjusted 12/31/2008 Adjustments 12/31/2008 Revenues New retail vehicles $3,245,451 $- $3,245,451 Fleet vehicles 192,386 - 192,386 Total new vehicles 3,437,837 - 3,437,837 Used vehicles 1,213,263 - 1,213,263 Wholesale vehicles 235,110 - 235,110 Total vehicles 4,886,210 - 4,886,210 Parts, service and collision repair 983,259 - 983,259 Finance, insurance and other 165,307 - 165,307 Total revenues 6,034,776 - 6,034,776 Total gross profit 985,539 - 985,539 SG&A expenses (815,083) 18,280 (796,803) Impairment charges (811,784) 811,784 - Depreciation (31,680) - (31,680) Operating income (673,008) 830,064 157,056 Interest expense, floor plan (38,263) - (38,263) Interest expense, other (54,430) - (54,430) Other (expense) / income 726 - 726 Income / (loss) from continuing operations before taxes (764,975) 830,064 65,089 Income taxes 130,848 (153,691) (22,843) Income / (loss) from continuing operations (634,127) 676,373 42,246 Discontinued operations: Income / (loss) from operations and the sale of discontinued franchises (55,954) 55,529 (425) Income tax benefit / (expense) 4,154 (4,286) (132) Loss from discontinued operations (51,800) 51,243 (557) Net income/ (loss) $(685,927) $727,616 $41,689 Diluted: Weighted average common shares outstanding 40,356 40,356 40,356 Earnings / (loss) per share from continuing operations ($15.71) $16.76 $1.05 Earnings / (loss) per share from discontinued operations ($1.29) $1.27 ($0.02) Earnings / (loss) per share ($17.00) $18.03 $1.03 Gross Margin Data (Continuing Operations): Retail new vehicles 7.1% 0.0% 7.1% Fleet vehicles 1.3% 0.0% 1.3% Total new vehicles 6.8% 0.0% 6.8% Used vehicles retail 8.5% 0.0% 8.5% Total vehicles retail 7.2% 0.0% 7.2% Wholesale vehicles (2.8%) 0.0% (2.8%) Parts, service and collision repair 49.8% 0.0% 49.8% Finance, insurance and other 100.0% 0.0% 100.0% Overall gross margin 16.3% 0.0% 16.3% SG&A Expenses (Continuing Operations): Personnel $443,669 $- $443,669 Advertising 50,866 - 50,866 Facility rent 85,260 - 85,260 Other 235,288 (18,280) 217,008 Total $815,083 $(18,280) $796,803 SG&A Expenses as % of Gross Profit Personnel 45.0% 0.0% 45.0% Advertising 5.2% 0.0% 5.2% Facility rent 8.7% 0.0% 8.7% Other 23.9% (1.8%) 22.1% Total 82.7% (1.8%) 80.9% Operating Margin % (11.2%) 13.8% 2.6% Twelve Months Ended As Reported As Adjusted 12/31/2007 Adjustments 12/31/2007 Revenues New retail vehicles $3,851,589 $- $3,851,589 Fleet vehicles 224,802 - 224,802 Total new vehicles 4,076,391 - 4,076,391 Used vehicles 1,200,154 - 1,200,154 Wholesale vehicles 326,540 - 326,540 Total vehicles 5,603,085 - 5,603,085 Parts, service and collision repair 973,233 - 973,233 Finance, insurance and other 181,053 - 181,053 Total revenues 6,757,371 - 6,757,371 Total gross profit 1,066,084 - 1,066,084 SG&A expenses (790,221) 1,046 (789,175) Impairment charges (958) 958 - Depreciation (22,576) - (22,576) Operating income 252,329 2,004 254,333 Interest expense, floor plan (54,143) - (54,143) Interest expense, other (36,411) - (36,411) Other (expense) / income 44 - 44 Income / (loss) from continuing operations before taxes 161,819 2,004 163,823 Income taxes (63,621) (419) (64,040) Income / (loss) from continuing operations 98,198 1,585 99,783 Discontinued operations: - - Income / (loss) from operations and the sale of discontinued franchises 809 7,398 8,207 Income tax benefit / (expense) (3,505) (1,960) (5,465) Loss from discontinued operations (2,696) 5,438 2,742 Net income/ (loss) $95,502 $7,023 $102,525 Diluted: Weighted average common shares outstanding 46,941 46,941 46,941 Earnings / (loss) per share from continuing operations $2.17 $0.03 $2.20 Earnings / (loss) per share from discontinued operations ($0.04) $0.12 $0.08 Earnings / (loss) per share $2.13 $0.15 $2.28 Gross Margin Data (Continuing Operations): Retail new vehicles 7.5% 0.0% 7.5% Fleet vehicles 0.8% 0.0% 0.8% Total new vehicles 7.1% 0.0% 7.1% Used vehicles retail 9.1% 0.0% 9.1% Total vehicles retail 7.6% 0.0% 7.6% Wholesale vehicles (1.4%) 0.0% (1.4%) Parts, service and collision repair 50.4% 0.0% 50.4% Finance, insurance and other 100.0% 0.0% 100.0% Overall gross margin 15.8% 0.0% 15.8% SG&A Expenses (Continuing Operations): Personnel $447,704 $- $447,704 Advertising 55,849 - $55,849 Facility rent 85,840 - $85,840 Other 200,828 (1,046) $199,782 Total $790,221 $(1,046) $789,175 SG&A Expenses as % of Gross Profit Personnel 42.0% 0.0% 42.0% Advertising 5.2% 0.0% 5.2% Facility rent 8.1% 0.0% 8.1% Other 18.8% (0.1%) 18.7% Total 74.1% (0.1%) 74.0% Operating Margin % 3.7% 0.0% 3.8% Sonic Automotive, Inc. Results of Operations (Unaudited) (in thousands, except per share, unit data and percentage amounts) Three Months Ended As Reported As Adjusted 12/31/2008 Adjustments 12/31/2008 Revenues New retail vehicles $650,765 $- $650,765 Fleet vehicles 27,647 - 27,647 Total new vehicles 678,412 - 678,412 Used vehicles 271,432 - 271,432 Wholesale vehicles 36,645 - 36,645 Total vehicles 986,489 - 986,489 Parts, service and collision repair 237,775 - 237,775 Finance, insurance and other 31,342 - 31,342 Total revenues 1,255,606 - 1,255,606 Total gross profit 211,687 - 211,687 SG&A expenses (195,014) 3,900 (191,114) Impairment charges (789,944) 789,944 - Depreciation (8,997) - (8,997) Operating income (782,268) 793,844 11,576 Interest expense, floor plan (9,620) - (9,620) Interest expense, other (14,833) - (14,833) Other (expense) / income 650 - 650 Income / (loss) from continuing operations before taxes (806,071) 793,844 (12,227) Income taxes 147,287 (139,891) 7,396 Income / (loss) from continuing operations (658,784) 653,953 (4,831) Discontinued operations: Income / (loss) from operations and the sale of discontinued franchises (22,148) 21,586 (562) Income tax benefit / (expense) (4,665) 7,628 2,963 Loss from discontinued operations (26,813) 29,214 2,401 Net income/ (loss) $(685,597) $683,167 $(2,430) Diluted: Weighted average common shares outstanding 40,087 40,087 40,087 Earnings / (loss) per share from continuing operations ($16.43) $16.31 ($0.12) Earnings / (loss) per share from discontinued operations ($0.67) $0.73 $0.06 Earnings / (loss) per share ($17.10) $17.04 ($0.06) Gross Margin Data (Continuing Operations): Retail new vehicles 6.8% 0.0% 6.8% Fleet vehicles 1.8% 0.0% 1.8% Total new vehicles 6.6% 0.0% 6.6% Used vehicles retail 7.0% 0.0% 7.0% Total vehicles retail 6.7% 0.0% 6.7% Wholesale vehicles (6.9%) 0.0% (6.9%) Parts, service and collision repair 50.1% 0.0% 50.1% Finance, insurance and other 100.0% 0.0% 100.0% Overall gross margin 16.9% 0.0% 16.9% SG&A Expenses (Continuing Operations): Personnel $98,214 $- $98,214 Advertising 10,556 - 10,556 Facility rent 21,316 - 21,316 Other 64,928 (3,900) 61,028 Total $195,014 $(3,900) $191,114 SG&A Expenses as % of Gross Profit Personnel 46.4% 0.0% 46.4% Advertising 5.0% 0.0% 5.0% Facility rent 10.1% 0.0% 10.1% Other 30.7% (1.8%) 28.8% Total 92.1% (1.8%) 90.3% Operating Margin % (62.3%) 63.2% 0.9% Three Months Ended As Reported As Adjusted 12/31/2007 Adjustments 12/31/2007 Revenues New retail vehicles $996,684 $- $996,684 Fleet vehicles 58,129 - 58,129 Total new vehicles 1,054,813 - 1,054,813 Used vehicles 316,560 - 316,560 Wholesale vehicles 74,547 - 74,547 Total vehicles 1,445,920 - 1,445,920 Parts, service and collision repair 248,301 - 248,301 Finance, insurance and other 46,054 - 46,054 Total revenues 1,740,275 - 1,740,275 Total gross profit 269,093 - 269,093 SG&A expenses (194,834) 267 (194,567) Impairment charges (269) 269 - Depreciation (5,918) - (5,918) Operating income 68,072 536 68,608 Interest expense, floor plan (13,703) - (13,703) Interest expense, other (10,146) - (10,146) Other (expense) / income (37) - (37) Income / (loss) from continuing operations before taxes 44,186 536 44,722 Income taxes (17,379) 156 (17,223) Income / (loss) from continuing operations 26,807 692 27,499 Discontinued operations: - - Income / (loss) from operations and the sale of discontinued franchises (3,087) 1,440 (1,647) Income tax benefit / (expense) (684) 375 (309) Loss from discontinued operations (3,771) 1,815 (1,956) Net income/ (loss) $23,036 $2,507 $25,543 Diluted: Weighted average common shares outstanding 44,894 44,894 44,894 Earnings / (loss) per share from continuing operations $0.62 $0.02 $0.64 Earnings / (loss) per share from discontinued operations ($0.08) $0.04 ($0.04) Earnings / (loss) per share $0.54 $0.06 $0.60 Gross Margin Data (Continuing Operations): Retail new vehicles 7.3% 0.0% 7.3% Fleet vehicles 0.7% 0.0% 0.7% Total new vehicles 7.0% 0.0% 7.0% Used vehicles retail 8.4% 0.0% 8.4% Total vehicles retail 7.3% 0.0% 7.3% Wholesale vehicles (2.3%) 0.0% (2.3%) Parts, service and collision repair 50.3% 0.0% 50.3% Finance, insurance and other 100.0% 0.0% 100.0% Overall gross margin 15.5% 0.0% 15.5% SG&A Expenses (Continuing Operations): Personnel $108,170 $- $108,170 Advertising 14,998 - $14,998 Facility rent 21,771 - $21,771 Other 49,895 (267) $49,628 Total $194,834 $(267) $194,567 SG&A Expenses as % of Gross Profit Personnel 40.2% 0.0% 40.2% Advertising 5.6% 0.0% 5.6% Facility rent 8.1% 0.0% 8.1% Other 18.6% (0.1%) 18.5% Total 72.4% (0.1%) 72.3% Operating Margin % 3.9% 0.0% 3.9% Sonic Automotive, Inc. Results of Operations (Unaudited) (in thousands, except per share, unit data and percentage amounts) (amounts in Three Months Twelve Months thousands) Ended Ended 12/31/2008 12/31/2007 12/31/2008 12/31/2007 SG&A expenses as Reported $(195,014) $(194,834) $(815,083) $(790,221) Adjustments: Hurricane and hail related expenses - - 8,000 - Lease exit and other accruals 3,900 267 10,280 1,046 Total Adjustments 3,900 267 18,280 1,046 SG&A expenses as Adjusted $(191,114) $(194,567) $(796,803) $(789,175) Impairment charges as Reported $(789,944) $(269) $(811,784) $(958) Adjustments: Property impairment charges 3,481 269 16,421 958 Goodwill impairment charges 786,463 - 786,463 - Franchise agreement and other asset impairment charges - - 8,900 - Total Adjustments 789,944 269 811,784 958 Impairment charges as Adjusted $- $- $- $- Operating income as Reported $(782,268) $68,072 $(673,008) $252,329 Adjustments: Hurricane and hail related expenses - - 8,000 - Lease exit and other accruals 3,900 267 10,280 1,046 Property impairment charges 3,481 269 16,421 958 Goodwill impairment charges 786,463 - 786,463 - Franchise agreement and other asset impairment charges - - 8,900 - Total Adjustments 793,844 536 830,064 2,004 Operating income as Adjusted $11,576 $68,608 $157,056 $254,333 Income / (loss) from continuing operations before taxes as Reported $(806,071) $44,186 $(764,975) $161,819 Adjustments: Hurricane and hail related expenses - - 8,000 - Lease exit and other accruals 3,900 267 10,280 1,046 Property impairment charges 3,481 269 16,421 958 Goodwill impairment charges 786,463 - 786,463 - Franchise agreement and other asset impairment charges - - 8,900 - Total Adjustments 793,844 536 830,064 2,004 Income / (loss) from continuing operations before taxes as Adjusted $(12,227) $44,722 $65,089 $163,823 Income taxes as Reported $147,287 $(17,379) $130,848 $(63,621) Adjustments: Hurricane and hail related expenses - - (3,048) - Lease exit and other accruals (1,486) (105) (3,917) (410) Property impairment charges (1,326) (105) (6,256) (375) Goodwill impairment charges (239,787) - (239,787) - Franchise agreement and other asset impairment charges - - (3,391) - Valuation allowance 102,708 366 102,708 366 Total Adjustments (139,891) 156 (153,691) (419) Income taxes as Adjusted $7,396 $(17,223) $(22,843) $(64,040) Income / (loss) from continuing operations as Reported $(658,784) $26,807 $(634,127) $98,198 Adjustments: Hurricane and hail related expenses - - 4,952 - Lease exit and other accruals 2,414 162 6,363 636 Property impairment charges 2,155 164 10,165 583 Goodwill impairment charges 546,676 - 546,676 - Franchise agreement and other asset impairment charges - - 5,509 - Valuation allowance 102,708 366 102,708 366 Total Adjustments 653,953 692 676,373 1,585 Income / (loss) from continuing operations as Adjusted $(4,831) $27,499 $42,246 $99,783 Income / (loss) from operations and the sale of discontinued franchises as Reported $(22,148) $(3,087) $(55,954) $809 Adjustments: Lease exit and other accruals 1,594 1,440 15,968 2,324 Property impairment charges 664 - 8,530 1,974 Goodwill impairment charges 10,862 - 10,862 - Franchise agreement and other asset impairment charges 8,466 - 18,266 3,100 Favorable lease asset impairment charges - - 1,903 - Total Adjustments 21,586 1,440 55,529 7,398 Income / (loss) from operations and the sale of discontinued franchises as Adjusted $(562) $(1,647) $(425) $8,207 Discontinued Operations income tax benefit / (expense) as Reported $(4,665) $(684) $4,154 $(3,505) Adjustments: Lease exit and other accruals (559) (564) (5,605) (911) Property impairment charges (233) - (2,994) (774) Goodwill impairment charges (924) - (924) - Franchise agreement and other asset impairment charges (2,972) - (6,411) - Favorable lease asset impairment charges - - (668) (1,214) Valuation allowance 12,316 939 12,316 939 Total Adjustments 7,628 375 (4,286) (1,960) Discontinued Operations income tax benefit / (expense) as Adjusted $2,963 $(309) $(132) $(5,465) Loss from discontinued operations as Reported $(26,813) $(3,771) $(51,800) $(2,696) Adjustments: Lease exit and other accruals 1,035 876 10,363 1,413 Property impairment charges 431 - 5,536 1,200 Goodwill impairment charges 9,938 - 9,938 - Franchise agreement and other asset impairment charges 5,494 - 11,855 3,100 Favorable lease asset impairment charges - - 1,235 (1,214) Valuation allowance 12,316 939 12,316 939 Total Adjustments 29,214 1,815 51,243 5,438 Loss from discontinued operations as Adjusted $2,401 $(1,956) $(557) $2,742 Net income / (loss) as Reported $(685,597) $23,036 $(685,927) $95,502 Adjustments: Hurricane and hail related expenses - - 4,952 - Lease exit and other accruals 3,449 1,038 16,726 2,049 Property impairment charges 2,586 164 15,701 1,783 Goodwill impairment charges 556,614 - 556,614 - Franchise agreement and other asset impairment charges 5,494 - 17,364 1,886 Favorable lease asset impairment charges - - 1,235 - Valuation allowance 115,024 1,305 115,024 1,305 Total Adjustments 683,167 2,507 727,616 7,023 Net income / (loss) as Adjusted $(2,430) $25,543 $41,689 $102,525 Earnings / (loss) per share from continuing operations as Reported $(16.43) $0.62 $(15.71) $2.17 Adjustments: Hurricane and hail related expenses - - 0.12 - Lease exit and other accruals 0.06 - 0.16 0.01 Property impairment charges 0.05 0.01 0.25 0.01 Goodwill impairment charges 13.64 - 13.55 - Franchise agreement and other asset impairment charges - - 0.13 - Valuation allowance 2.56 0.01 2.55 0.01 Total Adjustments 16.31 0.02 16.76 0.03 Earnings / (loss) per share from continuing operations as Adjusted $(0.12) $0.64 $1.05 $2.20 Earnings / (loss) per share from discontinued operations as Reported $(0.67) $(0.08) $(1.29) $(0.04) Adjustments: Lease exit and other accruals 0.03 0.02 0.26 0.03 Property impairment charges 0.01 - 0.14 0.03 Goodwill impairment charges 0.25 - 0.25 - Franchise agreement and other asset impairment charges 0.14 - 0.29 0.07 Favorable lease asset impairment charges - - 0.03 (0.03) Valuation allowance 0.30 0.02 0.30 0.02 Total Adjustments 0.73 0.04 1.27 0.12 Earnings / (loss) per share from discontinued operations as Adjusted $0.06 $(0.04) $(0.02) $0.08 Earnings / (loss) per share as Reported $(17.10) $0.54 $(17.00) $2.13 Adjustments: Hurricane and hail related expenses - - 0.12 - Lease exit and other accruals 0.09 0.02 0.42 0.04 Property impairment charges 0.06 0.01 0.39 0.04 Goodwill impairment charges 13.88 - 13.79 - Franchise agreement and other asset impairment charges 0.14 - 0.43 0.07 Favorable lease asset impairment charges - - 0.03 (0.03) Valuation allowance 2.87 0.03 2.85 0.03 Total Adjustments 17.04 0.06 18.03 0.15 Earnings / (loss) per share as Adjusted $(0.06) $0.60 $1.03 $2.28
Sonic Automotive, Inc.
CONTACT: David Cosper, Chief Financial Officer, +1-704-566-2400, or Greg
Young, Vice President of Finance, +1-704-566-2489, both for Sonic Automotive,
Inc.
Web Site: http://www.sonicautomotive.com/
