Exhibit 99.3

 

Sonic Automotive, Inc.

Results of Operations (unaudited)

(in thousands, except per share, unit data and percentage amounts)

 

     For the Year Ended

    Three Months Ended

 
     12/31/2005

    12/31/2004

    12/31/2005

    12/31/2004

 

Revenues

                                

Retail new vehicles

   $ 4,498,010     $ 4,093,679     $ 1,131,473     $ 1,079,859  

Fleet vehicles

     319,707       282,609       68,913       56,622  
    


 


 


 


Total new vehicles

     4,817,717       4,376,287       1,200,386       1,136,481  

Used vehicles

     1,238,586       1,141,431       305,043       287,574  

Wholesale vehicles

     540,977       481,873       132,351       118,453  
    


 


 


 


Total vehicles

     6,597,280       5,999,591       1,637,780       1,542,508  

Parts, service and collision repair

     1,091,172       994,263       277,806       257,831  

Finance, insurance and other

     196,390       183,728       48,012       45,000  
    


 


 


 


Total revenues

     7,884,842       7,177,582       1,963,598       1,845,339  

Total gross profit

     1,211,258       1,102,436       307,483       281,731  

SG&A expenses

     939,177       867,450       234,577       224,864  

Depreciation

     21,297       16,303       8,211       4,835  
    


 


 


 


Operating income

     250,784       218,683       64,695       52,032  

Interest expense, floor plan

     40,209       25,864       11,743       7,716  

Interest expense, other

     46,448       42,431       11,945       11,093  

Other income

     54       48       33       (14 )
    


 


 


 


Income from continuing operations before taxes

     164,181       150,436       41,040       33,209  

Income taxes

     62,390       57,152       15,821       13,929  
    


 


 


 


Income from continuing operations

     101,791       93,284       25,219       19,280  

Discontinued operations:

                                

Loss from operations and the sale of discontinued franchises

     (13,439 )     (10,623 )     (4,317 )     (6,507 )

Income tax benefit

     3,509       3,410       39       1,840  
    


 


 


 


Loss from discontinued operations

     (9,930 )     (7,213 )     (4,278 )     (4,667 )
    


 


 


 


Net income

   $ 91,861     $ 86,071     $ 20,941     $ 14,613  
    


 


 


 


Diluted:

                                

Weighted average common shares outstanding

     45,533       45,217       45,578       45,224  

Earnings per share from continuing operations

   $ 2.33     $ 2.16     $ 0.58     $ 0.45  

Loss per share from discontinued operations

   $ (0.21 )   $ (0.16 )   $ (0.10 )   $ (0.10 )
    


 


 


 


Earnings per share

   $ 2.12     $ 2.00     $ 0.48     $ 0.35  
    


 


 


 


Gross Margin Data:

                                

Retail new vehicles

     7.5 %     7.6 %     7.7 %     7.7 %

Fleet vehicles

     3.0 %     2.8 %     3.4 %     3.0 %

Total new vehicles

     7.2 %     7.3 %     7.5 %     7.5 %

Used vehicles retail

     10.6 %     10.4 %     10.4 %     9.8 %

Total vehicles retail

     7.9 %     7.9 %     8.1 %     7.9 %

Parts, service and collision repair

     49.2 %     48.7 %     49.8 %     48.4 %

Finance, insurance and other

     100.0 %     100.0 %     100.0 %     100.0 %

Overall gross margin

     15.4 %     15.4 %     15.7 %     15.3 %

SG&A Expenses:

                                

Personnel

     546,425       505,695       135,488       129,929  

Advertising

     64,721       59,258       15,881       14,746  

Facility rent

     92,620       78,641       24,713       20,916  

Other

     235,411       223,856       58,495       59,273  
    


 


 


 


Total

     939,177       867,450       234,577       224,864  

Unit Data:

                                

New retail units

     143,757       134,567       34,277       34,040  

Fleet units

     14,363       12,420       3,255       2,458  
    


 


 


 


Total new units

     158,120       146,987       37,532       36,498  

Used units

     68,392       64,911       16,389       15,766  
    


 


 


 


Total units retailed

     226,512       211,898       53,921       52,264  

Wholesale units

     61,244       57,570       14,580       14,058  

Average price per unit:

                                

New retail vehicles

     31,289       30,421       33,010       31,723  

Fleet vehicles

     22,259       22,754       21,171       23,036  

Total new vehicles

     30,469       29,773       31,983       31,138  

Used vehicles

     18,110       17,585       18,613       18,240  

Wholesale vehicles

     8,833       8,370       9,078       8,426  

Other Data:

                                

Floorplan assistance (continuing operations)

   $ 37,795     $ 36,621     $ 8,757     $ 9,197  

Same store revenue percentage changes:

                                

New retail

     4.4 %             -0.5 %        

Fleet

     13.4 %             20.3 %        

Total new

     5.0 %             0.6 %        

Used

     3.9 %             3.1 %        

Parts, service and collision repair

     3.1 %             2.1 %        

Finance, insurance and other

     4.1 %             4.4 %        

Total

     4.7 %             1.5 %        


Consolidated Balance Sheet Data:

 

     12/31/2005

    12/31/2004

 

ASSETS

                

Current Assets:

                

Cash

   $ 7,566     $ 9,991  

Receivables, net

     396,225       357,403  

Inventories

     1,016,457       1,024,342  

Assets held for sale

     73,837       98,530  

Construction in progress expected to be sold in sale-leaseback transactions

     95,131       77,285  

Other current assets

     27,484       21,910  
    


 


Total current assets

     1,616,700       1,589,461  

Property and Equipment, Net

     148,267       134,490  

Goodwill, Net

     1,122,538       1,056,924  

Other Intangibles, Net

     88,696       84,777  

Other Assets

     49,300       33,877  
    


 


TOTAL ASSETS

   $ 3,025,501     $ 2,899,529  
    


 


LIABILITIES AND STOCKHOLDERS’ EQUITY

                

Current Liabilities:

                

Notes payable - floor plan - trade

   $ 579,022     $ 609,422  

Notes payable - floor plan - non-trade

     410,296       375,127  

Trade accounts payable

     91,101       88,616  

Accrued interest

     17,378       15,421  

Other accrued liabilities

     167,060       175,511  

Liabilities held for sale - trade

     41,675       54,513  

Liabilities held for sale - non-trade

     11,215       11,796  

Current maturities of long-term debt

     2,747       2,970  
    


 


Total current liabilities

     1,320,494       1,333,376  

LONG-TERM DEBT

     712,311       668,826  

OTHER LONG-TERM LIABILITIES

     29,479       28,888  

DEFERRED INCOME TAXES

     132,419       98,752  

STOCKHOLDERS’ EQUITY

                

Class A common stock

     403       397  

Class B common stock

     121       121  

Paid-in capital

     433,654       441,503  

Retained earnings

     542,374       470,663  

Accumulated other comprehensive income / (loss)

     20       (1,228 )

Deferred compensation related to restricted stock

     (1,829 )     (3,408 )

Treasury stock, at cost

     (143,945 )     (138,361 )
    


 


Total stockholders’ equity

     830,798       769,687  
    


 


TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

   $ 3,025,501     $ 2,899,529  
    


 


Balance Sheet Data:

                

Current Ratio

     1.22       1.19  

Debt to Total Capital, Net of Cash

     46.0 %     46.2 %

LTM Return on Stockholders’ Equity

     11.4 %     11.7 %