Exhibit 99.1

Sonic Automotive Reports All-Time Record Third Quarter Earnings
Record EchoPark Revenues and Unit Sales Volume As Expansion Kicks Into High Gear

CHARLOTTE, N.C. – October 29, 2020 - Sonic Automotive, Inc. (“Sonic” or the “Company”) (NYSE:SAH), one of the nation’s largest automotive retailers, today reported financial results for the third quarter ended September 30, 2020.

Third Quarter Highlights

•All-time record earnings per diluted share from continuing operations of $1.35 for the third quarter of 2020, an increase of 105% compared to $0.66 for the third quarter of 2019 (included in the results for the third quarter of 2020 is a pre-tax gain of $3.2 million, or $0.06 per share, related to franchise disposals)
•Selling, general and administrative (“SG&A”) expenses as a percentage of gross profit were 68.3% for the third quarter of 2020, compared to 76.7% for the third quarter of 2019 (results for the third quarter of 2020 include an 80 basis point benefit related to a gain on franchise disposals)
•Total Sonic consolidated third quarter 2020 revenues of $2.5 billion and gross profit of $376.6 million
•All-time record EchoPark quarterly revenues of $385.1 million, up 23.3% from the third quarter of 2019
•All-time record EchoPark quarterly retail sales volume of 15,127 units, up 14.5% from the third quarter of 2019
•Same store Franchised Dealerships Segment operating results for the third quarter of 2020, compared to the third quarter of 2019:
◦Revenues down 5.6%, gross profit up 1.5%
◦New vehicle unit sales volume down 14.6%; new vehicle gross profit per unit up 38.4%, to $2,607
◦Retail used vehicle unit sales volume down 4.6%; retail used vehicle gross profit per unit up 3.9%, to $1,307
◦Parts, service and collision repair gross profit down 3.9%, customer pay gross profit down 0.9%; gross margin up 130 basis points, to 49.2%
◦Finance and insurance (“F&I”) gross profit down 1.4%; total Franchised Dealerships Segment F&I gross profit per retail unit of $1,810, up 10.0%

Commentary

Jeff Dyke, Sonic’s and EchoPark’s President, commented, “Our third quarter results demonstrate the strength and resilience of our business model, driving the highest third quarter profit in our Company’s history. All business lines saw sequential improvement from the second quarter, with a combination of increasing consumer demand and enhanced operating efficiency and profitability as a result of the strategic actions our team took early in the pandemic. We believe the third quarter marks an inflection point in our Company’s path to more than double its total revenues and dramatically increase profitability in the next five years. We remain committed to providing our guests with an industry-leading vehicle purchase experience, offering a variety of options across the omni-channel spectrum to suit each individual’s needs. We continue to enhance our e-commerce platform to offer our guests a fully-integrated online and on-site sales experience at both our franchised dealership websites and EchoPark.com, further supporting the long-term growth plans for our business.”

Mr. Dyke continued, “We are very pleased with our franchised dealerships’ performance during the quarter, which reflects steadily increasing automotive retail consumer demand and the extraordinary dedication of our teammates to continue to deliver exceptional results despite the challenges of the pandemic. As importantly, EchoPark achieved all-time record retail sales volume in the quarter, selling over 15,000 units at our 12 existing locations. Our guests continue to see incredible value in the inventory selection, pricing, and buying experience that EchoPark offers and we remain focused on accelerating the expansion of this brand nationally. Our recent EchoPark expansion in Greenville, South Carolina, Houston, Texas, and Nashville, Tennessee, plus expected new openings by year end in Plano, Texas and Atlanta, Georgia, continue to drive toward a 140-point nationwide distribution network, expected to retail over half a million pre-owned vehicles annually by 2025.”

Heath Byrd, Sonic’s and EchoPark’s Chief Financial Officer, commented, “We have continued to increase operating efficiency at both our franchised dealerships and EchoPark stores, driving improved profitability throughout our operations. Total SG&A expenses for the third quarter were down $39.7 million, or 13.4%, year-over-year, while SG&A expenses as a percentage of gross profit were 68.3%, down 840 basis points from the year-ago quarter. Due to our ongoing cost-management initiatives, we are now a much leaner, more efficient organization than we were prior to the COVID-19 pandemic.”

Third Quarter 2020 Operational Summary

For the third quarter of 2020, Sonic’s consolidated total revenues were $2.5 billion, down 5.7% compared to the third quarter of 2019 and up 20.7% sequentially from the second quarter of 2020. EchoPark Segment revenues were $385.1 million for the third quarter of 2020, representing a 23.3% increase from the third quarter of 2019 and a 22.1% increase sequentially from the second quarter of 2020. Franchised Dealerships Segment revenues were $2.2 billion for the third quarter of 2020, representing a 9.5% decrease from the third quarter of 2019 and a 20.4% increase sequentially from $1.8 billion in the second quarter of 2020.



Adjusted SG&A expenses as a percentage of gross profit (a non-GAAP measure) for the third quarter of 2020 were 69.1%, a decrease of 760 basis points compared to the third quarter of 2019, due primarily to ongoing cost-control measures consistent with the Company’s stated goal of approximately $84.0 million in permanent SG&A expense reductions annually.

Net income from continuing operations for the third quarter of 2020 was $60.0 million, or $1.35 per diluted share, compared to $29.2 million, or $0.66 per diluted share, for the third quarter of 2019. Adjusted net income from continuing operations (a non-GAAP measure) for the third quarter of 2020 was $57.7 million, or $1.29 per diluted share. Comparatively, adjusted net income from continuing operations (a non-GAAP measure) for the third quarter of 2019 was $29.2 million, or $0.66 per diluted share.

Dividend

Sonic’s Board of Directors approved a quarterly cash dividend of $0.10 per share payable on January 15, 2021 to all stockholders of record on December 15, 2020.

Third Quarter 2020 Earnings Conference Call

Senior management will host a conference call on Thursday, October 29, 2020 at 11:00 A.M. (Eastern) to discuss the quarter’s results. To access the live broadcast of the call over the Internet, please go to ir.sonicautomotive.com. The conference call will also be available live by dialing in 15 minutes prior to the start of the call at:

Domestic: (833) 519-1243
International: (914) 800-3816
Conference ID: 2553839

A conference call replay will be available one hour following the call for 14 days and can be accessed by calling:

Domestic: (855) 859-2056
International: (404) 537-3406
Conference ID: 2553839

Investor presentation and earnings press release materials for the Company’s earnings conference call will be accessible beginning the morning of the conference call on the Company’s website at ir.sonicautomotive.com.

About Sonic Automotive

Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, North Carolina, is one of the nation’s largest automotive retailers. Sonic can be reached on the web at www.sonicautomotive.com.

About EchoPark Automotive

EchoPark Automotive is a growing operating segment within the Company that specializes in pre-owned vehicle sales and provides a unique guest experience unlike traditional used car stores. More information about EchoPark Automotive can be found at www.echopark.com.

Forward-Looking Statements

Included herein are forward-looking statements, including statements regarding anticipated future revenue levels, future profitability, projected SG&A expense levels, pre-owned vehicle sales projections and the opening of additional EchoPark points. There are many factors that affect management’s views about future events and trends of the Company’s business. These factors involve risks and uncertainties that could cause actual results or trends to differ materially from management’s views, including, without limitation, economic conditions in the markets in which we operate, new and used vehicle industry sales volume, anticipated future growth in our EchoPark Segment, the success of our operational strategies, the rate and timing of overall economic expansion or contraction, the effect of the COVID-19 pandemic and related government-imposed restrictions on operations, and the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 and other reports and information filed with the Securities and Exchange Commission (the “SEC”). The Company does not undertake any obligation to update forward-looking information, except as required under federal securities laws and the rules and regulations of the SEC.

Non-GAAP Financial Measures

This press release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as adjusted net income from continuing operations, adjusted earnings per diluted share from continuing operations, adjusted SG&A expenses, and adjusted SG&A expenses as a percentage of gross profit. As required by SEC rules, the Company has provided reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures in the schedules


included in this press release. The Company believes that these non-GAAP financial measures improve the transparency of the Company’s disclosures and provide a meaningful presentation of the Company’s results.

Company Contacts

Investor Inquiries:
Heath Byrd, Executive Vice President and Chief Financial Officer (704) 566-2400
Danny Wieland, Investor Relations (704) 927-3462
ir@sonicautomotive.com
Press Inquiries:
Danielle DeVoren / Anthony Feldman
212-896-1272 / 347-487-6194
ddevoren@kcsa.com/afeldman@kcsa.com




Sonic Automotive, Inc.
Results of Operations (Unaudited)

Results of Operations - Consolidated
Three Months Ended September 30,Better / (Worse)Nine Months Ended September 30,Better / (Worse)
20202019% Change20202019% Change
(In thousands, except per share amounts)
Revenues:
New vehicles$1,098,302 $1,258,018 (12.7)%$2,957,794 $3,529,106 (16.2)%
Used vehicles946,028 914,272 3.5 %2,604,957 2,620,264 (0.6)%
Wholesale vehicles56,502 51,542 9.6 %138,221 156,351 (11.6)%
Total vehicles2,100,832 2,223,832 (5.5)%5,700,972 6,305,721 (9.6)%
Parts, service and collision repair320,929 352,047 (8.8)%914,667 1,048,789 (12.8)%
Finance, insurance and other, net126,784 126,841 — %352,848 351,429 0.4 %
Total revenues2,548,545 2,702,720 (5.7)%6,968,487 7,705,939 (9.6)%
Cost of Sales:
New vehicles(1,035,624)(1,202,710)13.9 %(2,804,314)(3,363,603)16.6 %
Used vehicles(917,993)(877,444)(4.6)%(2,517,421)(2,509,699)(0.3)%
Wholesale vehicles(53,958)(52,648)(2.5)%(136,260)(159,437)14.5 %
Total vehicles(2,007,575)(2,132,802)5.9 %(5,457,995)(6,032,739)9.5 %
Parts, service and collision repair(164,403)(183,107)10.2 %(475,964)(546,067)12.8 %
Total cost of sales(2,171,978)(2,315,909)6.2 %(5,933,959)(6,578,806)9.8 %
Gross profit376,567 386,811 (2.6)%1,034,528 1,127,133 (8.2)%
Selling, general and administrative expenses(257,174)(296,826)13.4 %(769,688)(838,453)8.2 %
Impairment charges(26)(1,124)97.7 %(268,859)(3,076)(8,640.5)%
Depreciation and amortization(22,934)(23,665)3.1 %(67,879)(70,120)3.2 %
Operating income (loss)96,433 65,196 47.9 %(71,898)215,484 (133.4)%
Other income (expense):
Interest expense, floor plan(4,999)(11,638)57.0 %(21,821)(37,382)41.6 %
Interest expense, other, net(10,762)(13,013)17.3 %(31,523)(39,494)20.2 %
Other income (expense), net1 (5)120.0 %100 90 (11.1)%
Total other income (expense)(15,760)(24,656)36.1 %(53,244)(76,786)30.7 %
Income (loss) from continuing operations before taxes80,673 40,540 99.0 %(125,142)138,698 (190.2)%
Provision for income taxes for continuing operations - benefit (expense)(20,685)(11,372)(81.9)%16,995 (40,430)142.0 %
Income (loss) from continuing operations59,988 29,168 105.7 %(108,147)98,268 (210.1)%
Discontinued operations:
Income (loss) from discontinued operations before taxes(234)(223)(4.9)%(808)(616)(31.2)%
Provision for income taxes for discontinued operations - benefit (expense)64 65 (1.5)%231 179 29.1 %
Income (loss) from discontinued operations(170)(158)(7.6)%(577)(437)(32.0)%
Net income (loss)$59,818 $29,010 106.2 %$(108,724)$97,831 (211.1)%
Basic earnings (loss) per common share:
Earnings (loss) per share from continuing operations$1.41 $0.68 107.4 %$(2.53)$2.28 (211.0)%
Earnings (loss) per share from discontinued operations— (0.01)100.0 %(0.02)(0.01)(100.0)%
Earnings (loss) per common share$1.41 $0.67 110.4 %$(2.55)$2.27 (212.3)%
Weighted-average common shares outstanding42,510 43,078 1.3 %42,687 42,995 0.7 %
Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations$1.35 $0.66 104.5 %$(2.53)$2.26 (211.9)%
Earnings (loss) per share from discontinued operations(0.01)— (100.0)%(0.02)(0.01)(100.0)%
Earnings (loss) per common share$1.34 $0.66 103.0 %$(2.55)$2.25 (213.3)%
Weighted-average common shares outstanding44,577 44,203 (0.8)%42,687 43,456 1.8 %
Dividends declared per common share$0.10 $0.10 — %$0.30 $0.30 — %





Franchised Dealerships Segment - Reported


Three Months Ended
September 30,		Better / (Worse)Nine Months Ended
September 30,		Better / (Worse)
20202019% Change20202019% Change
(In thousands, except unit and per unit data)
Revenues:
New vehicles$1,098,302 $1,258,018 (12.7)%$2,957,794 $3,529,106 (16.2)%
Used vehicles615,565 648,006 (5.0)%1,718,151 1,889,045 (9.0)%
Wholesale vehicles48,526 44,517 9.0 %119,474 140,770 (15.1)%
Total vehicles1,762,393 1,950,541 (9.6)%4,795,419 5,558,921 (13.7)%
Parts, service and collision repair310,035 343,820 (9.8)%886,534 1,027,382 (13.7)%
Finance, insurance and other, net91,035 96,142 (5.3)%254,465 266,171 (4.4)%
Total revenues2,163,463 2,390,503 (9.5)%5,936,418 6,852,474 (13.4)%
Gross Profit:
New vehicles62,678 55,308 13.3 %153,480 165,503 (7.3)%
Used vehicles34,385 37,623 (8.6)%97,114 111,815 (13.1)%
Wholesale vehicles2,556 (971)363.2 %2,116 (2,845)174.4 %
Total vehicles99,619 91,960 8.3 %252,710 274,473 (7.9)%
Parts, service and collision repair156,711 169,158 (7.4)%439,272 503,311 (12.7)%
Finance, insurance and other, net91,035 96,142 (5.3)%254,465 266,171 (4.4)%
Total gross profit347,365 357,260 (2.8)%946,447 1,043,955 (9.3)%
Selling, general and administrative expenses(231,882)(274,585)15.6 %(697,796)(773,915)9.8 %
Impairment charges(26)— (100.0)%(268,859)(26)NM
Depreciation and amortization(20,170)(20,967)3.8 %(59,654)(62,348)4.3 %
Operating income (loss)95,287 61,708 54.4 %(79,862)207,666 (138.5)%
Other income (expense):
Interest expense, floor plan(4,234)(10,679)60.4 %(19,517)(34,781)43.9 %
Interest expense, other, net(10,615)(12,607)15.8 %(30,771)(38,214)19.5 %
Other income (expense), net(4)(5)20.0 %96 29 231.0 %
Total other income (expense)(14,853)(23,291)36.2 %(50,192)(72,966)31.2 %
Income (loss) before taxes80,434 38,417 109.4 %(130,054)134,700 (196.6)%
Add: impairment charges26 — NM268,859 26 NM
Segment income (loss)$80,460 $38,417 109.4 %$138,805 $134,727 3.0 %
Unit Sales Volume:
New vehicles24,100 30,147 (20.1)%65,715 83,540 (21.3)%
Used vehicles26,363 29,247 (9.9)%76,374 85,530 (10.7)%
Wholesale vehicles6,679 7,123 (6.2)%18,416 22,231 (17.2)%
Retail new & used vehicles50,463 59,394 (15.0)%142,089 169,070 (16.0)%
Used:New Ratio1.09 0.97 12.8 %1.16 1.02 13.5 %
Gross Profit Per Unit:
New vehicles$2,601 $1,835 41.7 %$2,336 $1,981 17.9 %
Used vehicles$1,304 $1,286 1.4 %$1,272 $1,307 (2.7)%
Finance, insurance and other, net$1,810 $1,645 10.0 %$1,802 $1,590 13.3 %
NM = Not Meaningful



Franchised Dealerships Segment - Same Store


Three Months Ended
September 30,		Better / (Worse)Nine Months Ended
September 30,		Better / (Worse)
20202019% Change20202019% Change
(In thousands, except unit and per unit data)
Revenues:
New vehicles$1,092,360 $1,194,486 (8.5)%$2,937,057 $3,329,926 (11.8)%
Used vehicles613,097 620,278 (1.2)%1,706,949 1,795,833 (4.9)%
Wholesale vehicles48,326 42,880 12.7 %118,744 134,038 (11.4)%
Total vehicles1,753,783 1,857,644 (5.6)%4,762,750 5,259,797 (9.4)%
Parts, service and collision repair308,385 331,247 (6.9)%878,191 981,967 (10.6)%
Finance, insurance and other, net85,971 87,185 (1.4)%238,328 241,483 (1.3)%
Total revenues$2,148,139 $2,276,076 (5.6)%$5,879,269 $6,483,247 (9.3)%
Gross Profit:
New vehicles$62,237 $52,657 18.2 %$151,250 $157,799 (4.2)%
Used vehicles34,261 34,592 (1.0)%93,234 101,886 (8.5)%
Wholesale vehicles2,676 (786)440.5 %2,331 (2,150)208.4 %
Total vehicles99,174 86,463 14.7 %246,815 257,535 (4.2)%
Parts, service and collision repair156,446 162,779 (3.9)%435,484 479,904 (9.3)%
Finance, insurance and other, net85,971 87,185 (1.4)%238,328 241,483 (1.3)%
Total gross profit$341,591 $336,427 1.5 %$920,627 $978,922 (6.0)%
Unit Sales Volume:
New vehicles23,875 27,971 (14.6)%64,955 76,653 (15.3)%
Used vehicles26,216 27,490 (4.6)%75,678 79,571 (4.9)%
Wholesale vehicles6,638 6,545 1.4 %18,271 20,274 (9.9)%
Retail new & used vehicles50,091 55,461 (9.7)%140,633 156,224 (10.0)%
Used:New Ratio1.10 0.98 11.7 %1.17 1.04 12.2 %
Gross Profit Per Unit:
New vehicles$2,607 $1,883 38.4 %$2,329 $2,059 13.1 %
Used vehicles$1,307 $1,258 3.9 %$1,232 $1,280 (3.8)%
Finance, insurance and other, net$1,722 $1,600 7.6 %$1,706 $1,563 9.1 %




EchoPark Segment - Reported

Three Months Ended
September 30,		Better / (Worse)Nine Months Ended
September 30,		Better / (Worse)
20202019% Change20202019% Change
(In thousands, except unit and per unit data)
Revenues:
Used vehicles$330,463 $266,266 24.1 %$886,806 $731,219 21.3 %
Wholesale vehicles7,976 7,025 13.5 %18,747 15,581 20.3 %
Total vehicles338,439 273,291 23.8 %905,553 746,800 21.3 %
Parts, service and collision repair10,894 8,227 32.4 %28,133 21,407 31.4 %
Finance, insurance and other, net35,749 30,699 16.5 %98,383 85,258 15.4 %
Total revenues385,082 312,217 23.3 %1,032,069 853,465 20.9 %
Gross Profit:
Used vehicles(6,350)(795)(698.7)%(9,578)(1,250)(666.2)%
Wholesale vehicles(12)(135)91.1 %(155)(241)35.7 %
Total vehicles(6,362)(930)584.1 %(9,733)(1,491)552.8 %
Parts, service and collision repair(185)(218)15.1 %(569)(589)3.4 %
Finance, insurance and other, net35,749 30,699 16.5 %98,383 85,258 15.4 %
Total gross profit29,202 29,551 (1.2)%88,081 83,178 5.9 %
Selling, general and administrative expenses(25,292)(22,241)(13.7)%(71,892)(64,538)(11.4)%
Impairment charges— (1,124)100.0 %— (3,050)100.0 %
Depreciation and amortization(2,764)(2,698)(2.4)%(8,225)(7,772)(5.8)%
Operating income (loss)1,146 3,488 (67.1)%7,964 7,818 1.9 %
Other income (expense):
Interest expense, floor plan(765)(959)20.2 %(2,304)(2,601)11.4 %
Interest expense, other, net(147)(406)63.8 %(752)(1,280)41.3 %
Other income (expense), net5 — 100.0 %4 61 (93.4)%
Total other income (expense)(907)(1,365)33.6 %(3,052)(3,820)20.1 %
Income (loss) before taxes239 2,123 (88.7)%4,912 3,998 22.9 %
Add: impairment charges— (1,124)NM— (3,050)NM
Segment income (loss)$239 $3,247 (92.6)%$4,912 $7,047 (30.3)%
Unit Sales Volume:
Used vehicles15,127 13,206 14.5 %42,320 36,844 14.9 %
Wholesale vehicles1,955 1,838 6.4 %5,174 4,023 28.6 %
Gross Profit Per Unit:
Total used vehicle and F&I $1,943 $2,264 (14.2)%$2,098 $2,280 (8.0)%
NM = Not Meaningful



EchoPark Segment - Same Store

Three Months Ended
September 30,		Better / (Worse)Nine Months Ended
September 30,		Better / (Worse)
20202019% Change20202019% Change
(In thousands, except unit and per unit data)
Revenues:
Used vehicles$281,959 $266,266 5.9 %$790,302 $731,219 8.1 %
Wholesale vehicles7,195 7,025 2.4 %17,418 15,581 11.8 %
Total vehicles289,154 273,291 5.8 %807,720 746,800 8.2 %
Parts, service and collision repair9,673 8,227 17.6 %25,524 21,407 19.2 %
Finance, insurance and other, net30,523 30,588 (0.2)%87,796 84,840 3.5 %
Total revenues$329,350 $312,106 5.5 %$921,040 $853,047 8.0 %
Gross Profit:
Used vehicles$(7,365)$(2,501)(194.5)%$(13,197)$(5,222)(152.7)%
Wholesale vehicles(17)(135)87.4 %(156)(240)35.0 %
Total vehicles(7,382)(2,636)180.0 %(13,353)(5,462)144.5 %
Parts, service and collision repair(95)(218)56.4 %(395)(568)30.5 %
Finance, insurance and other, net30,523 30,588 (0.2)%87,796 84,840 3.5 %
Total gross profit$23,046 $27,734 (16.9)%$74,048 $78,810 (6.0)%
Unit Sales Volume:
Used vehicles12,869 13,206 (2.6)%37,652 36,844 2.2 %
Wholesale vehicles1,720 1,838 (6.4)%4,715 4,023 17.2 %
Gross Profit Per Unit:
Total used vehicle and F&I$1,800 $2,127 (15.4)%$1,981 $2,161 (8.3)%





Selling, General and Administrative ("SG&A") Expenses - Consolidated

Three Months Ended September 30,Better / (Worse)
20202019Change% Change
(In thousands)
Reported:
Compensation$169,097 $184,089 $14,992 8.1 %
Advertising9,455 15,856 6,401 40.4 %
Rent13,846 12,721 (1,125)(8.8)%
Other64,776 84,160 19,384 23.0 %
Total SG&A expenses$257,174 $296,826 $39,652 13.4 %
Items of interest:
Gain (loss) on franchise disposals$3,150 $— 
Total SG&A adjustments$3,150 $— 
Adjusted:
Total adjusted SG&A expenses$260,324 $296,826 $36,502 12.3 %
Reported:
SG&A expenses as a % of gross profit:
Compensation44.9 %47.6 %270 bps
Advertising2.5 %4.1 %160 bps
Rent3.7 %3.3 %(40)bps
Other17.2 %21.7 %450 bps
Total SG&A expenses as a % of gross profit68.3 %76.7 %840 bps
Items of interest:
Gain (loss) on franchise disposals0.8 %— %
Total effect of adjustments0.8 %— %
Adjusted:
Total adjusted SG&A expenses as a % of gross profit69.1 %76.7 %760 bps































Selling, General and Administrative ("SG&A") Expenses - Consolidated
Nine Months Ended September 30,Better / (Worse)
20202019Change% Change
(In thousands)
Reported:
Compensation$483,784 $549,470 $65,686 12.0 %
Advertising31,677 46,308 14,631 31.6 %
Rent40,934 41,308 374 0.9 %
Other213,293 201,367 (11,926)(5.9)%
Total SG&A expenses$769,688 $838,453 $68,765 8.2 %
Items of interest:
Gain (loss) on franchise disposals$3,150 $46,680 
Executive transition costs— (6,264)
Total SG&A adjustments$3,150 $40,416 
Adjusted:
Total adjusted SG&A expenses$772,838 $878,869 $106,031 12.1 %
Reported:
SG&A expenses as a % of gross profit:
Compensation46.8 %48.7 %190 bps
Advertising3.1 %4.1 %100 bps
Rent4.0 %3.7 %(30)bps
Other20.5 %17.9 %(260)bps
Total SG&A expenses as a % of gross profit74.4 %74.4 %— bps
Items of interest:
Gain (loss) on franchise disposals0.3 %4.2 %
Executive transition costs— %(0.6)%
Total effect of adjustments0.3 %3.6 %
Adjusted:
Total adjusted SG&A expenses as a % of gross profit74.7 %78.0 %330 bps





Earnings Per Share from Continuing Operations - Non-GAAP Reconciliation

Three Months Ended September 30, 2020Three Months Ended September 30, 2019
Weighted-
Average
Shares		AmountPer
Share
Amount		Weighted-
Average
Shares		AmountPer
Share
Amount
(In thousands, except per share amounts)
Diluted earnings (loss) and shares from continuing operations
44,577 $59,988 $1.35 44,203 $29,168 $0.66 
Pre-tax items of interest:
(Gain) loss on franchise disposals$(3,150)$— 
Total pre-tax items of interest $(3,150)$— 
Tax effect of above items$827 $— 
Adjusted diluted earnings (loss) and shares from continuing operations44,577 $57,665 $1.29 44,203 $29,168 $0.66 



Nine Months Ended September 30, 2020Nine Months Ended September 30, 2019
Weighted-
Average
Shares		AmountPer
Share
Amount		Weighted-
Average
Shares		AmountPer
Share
Amount
(In thousands, except per share amounts)
Diluted earnings (loss) and shares from continuing operations (1)
42,687 $(108,147)$(2.53)43,456 $98,268 $2.26 
Pre-tax items of interest:
(Gain) loss on franchise disposals$(3,150)$(46,680)
Executive transition costs— 6,264 
Impairment charges268,000 1,926
Total pre-tax items of interest$264,850 $(38,490)
Tax effect of above items$(53,643)$12,902 
Adjusted diluted earnings (loss) and shares from continuing operations43,864 $103,060 $2.35 43,456 $72,680 $1.67 

(1) Basic Weighted-Average Shares Used For Nine Months Ended September 30, 2020 Due To Net Loss On GAAP Basis