Exhibit 99.1

Sonic Automotive, Inc. Profits up 24%

Same Store Revenue Grows 9% - Record Q1 Revenues

CHARLOTTE, N.C. – April 23, 2012Sonic Automotive, Inc. (NYSE: SAH), one of the nation’s largest automotive retailers, today reported 2012 first quarter earnings from continuing operations of $19.5 million for a 24% increase over the prior year results. Earnings from continuing operations per diluted share increased 22% to $0.33 compared to $0.27 in the prior year quarter.

Q1 2012 Highlights – Record Q1 Same Store Revenues; Fixed Operations Revenue and Gross Revenue Growth Despite Lower Warranty Activity; Continue to Invest in Base Business

 

   

Total Q1 revenues up 9.3% over prior year quarter

 

   

New vehicle retail revenue up 12.1% in Q1

 

   

Used vehicle revenue up 9.0% for the quarter

 

   

Parts and Service revenue up 5.1% in Q1

 

   

SG&A to gross profit % down 30 bps to 79.4% for the quarter

B. Scott Smith, the Company’s President, noted, “We are pleased with this quarter’s results. Our overall profitability increased significantly from the prior year quarter due to our strong revenue growth and continued improvement in our SG&A to gross profit metrics. The improvements in these metrics were achieved as we continue substantial investment in our information technology and training initiatives. We have cultivated a culture and team that are mature and stable, allowing us to embrace and execute these processes and technologies. Our goal remains the same, develop predictable, repeatable and sustainable processes through the use of innovative technologies and operating playbooks to create a competitive advantage benefiting Sonic Automotive now and in the years to come.”

Commenting on Sonic’s operating performance, Jeff Dyke, the Company’s EVP of Operations noted, “As a result of our operating disciplines, we achieved record first quarter revenues of nearly $2 billion with our current complement of stores. Our new vehicle retail unit volume, which increased 11.2% versus the first quarter of 2011, outpaced the new vehicle retail industry volume increase. We are excited about the possibilities of further improvement resulting from our continued focus on efficient execution of our selling and customer service processes.”

First Quarter Earnings Conference Call

Senior management will host a conference call today at 11:00 A.M. (Eastern) to discuss the quarter’s results. To access the live broadcast of the call over the Internet go to: www.sonicautomotive.com, then click on “Our Company”, then “Investor Relations”, then “Earnings Conference Calls”.

Presentation materials for the conference call can be accessed on the Company’s website at www.sonicautomotive.com by clicking on the “Investor Relations” tab under “Our Company” and choosing “Webcasts & Presentations”.


A live audio of the call will be accessible to the public by calling (877) 791-3416. International callers dial (706) 643-0958. Callers should dial in approximately 10 minutes before the call begins.

A conference call replay will be available one hour following the call for seven days and can be accessed by calling: 800-585-8367, Conference ID: 70848537, International callers dial (404) 537-3406.

About Sonic Automotive

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

Included herein are forward-looking statements, including statements with respect to anticipated growth in new vehicle sales, and future success and impacts from the implementation of our strategic initiatives. There are many factors that affect management’s views about future events and trends of the Company’s business. These factors involve risk and uncertainties that could cause actual results or trends to differ materially from management’s view, including without limitation, economic conditions in the markets in which we operate, new and used vehicle industry sales volume, the success of our operational strategies, the rate and timing of overall economic recovery or decline, and the risk factors described in the Company’s annual report on Form 10-K for the year ending December 31, 2011. The Company does not undertake any obligation to update forward-looking information.


Sonic Automotive, Inc.

Results of Operations (Unaudited)

(Dollars in thousands, except per share data)

 

        First Quarter Ended March 31,   
        2012            2011   

Revenues

                       

New retail vehicles

      $                      1,018,536            $                      908,853    

Fleet vehicles

        45,917              63,640    

Total new vehicles

        1,064,453              972,493    

Used vehicles

        517,052              474,555    

Wholesale vehicles

        45,341              35,046    

Total vehicles

        1,626,846              1,482,094    

Parts, service and collision repair

        301,748              287,100    

Finance, insurance and other

        59,248              49,102    

Total revenues

        1,987,842              1,818,296    

Total gross profit

        311,869              287,238    

Selling, general and administrative expenses

        (247,480)             (229,016)   

Impairment charges

        (1)             (17)   

Depreciation and amortization

        (11,071)             (9,895)   

Operating income (loss)

        53,317              48,310    

Interest expense, floor plan

        (4,473)             (5,365)   

Interest expense, other, net

        (15,080)             (15,359)   

Interest expense, non-cash, convertible debt

        (1,630)             (1,694)   

Interest income (expense/amortization), non-cash, cash flow swaps

        22              178    

Other income (expense), net

        19              71    

Income (loss) from continuing operations before taxes

        32,175              26,141    

Provision for income taxes - benefit (expense)

        (12,709)             (10,457)   

Income (loss) from continuing operations

        19,466              15,684    

Income (loss) from discontinued operations

        1,032              (720)   

Net income (loss)

      $ 20,498            $ 14,964    

Diluted:

                       

Weighted average common shares outstanding

        64,420              65,950    
                         

Earnings (loss) per share from continuing operations

      $ 0.33            $ 0.27    

Earnings (loss) per share from discontinued operations

        0.02              (0.01)   

Earnings (loss) per share

      $ 0.35            $ 0.26    
             

Gross Margin Data (Continuing Operations):

           
                         

New retail vehicles

        6.2%             6.3%    

Fleet vehicles

        3.4%             3.1%    

Total new vehicles

        6.1%             6.1%    

Used vehicles

        7.8%             7.9%    

Wholesale vehicles

        0.5%             (1.3%)   

Parts, service and collision repair

        48.7%             49.3%    

Finance, insurance and other

        100.0%             100.0%    

Overall gross margin

        15.7%             15.8%    
             

SG&A Expenses (Continuing Operations):

           
                         

Compensation

      $ 147,534            $ 134,802    

Advertising

        13,044              13,440    

Rent and rent related

        28,693              29,791    

Other

        58,209              50,983    

Total

      $ 247,480            $ 229,016    
                         

SG&A Expenses as % of Gross Profit

        79.4%             79.7%    
                         

Operating Margin %

        2.7%             2.7%    
             

Unit Data (Continuing Operations):

           
                         

New retail units

        29,685              26,703    

Fleet units

        1,705              2,488    

Total new units

        31,390              29,191    

Used units

        26,547              24,895    

Wholesale units

        7,526              5,583    
             

Other Data:

           
             

Continuing Operations revenue percentage changes:

                 

New retail vehicles

        12.1%          

Fleet vehicles

        (27.8%)         

  Total new vehicles

        9.5%          

Used vehicles

        9.0%          

Parts, service and collision repair

        5.1%          

Finance, insurance and other

        20.7%          

  Total revenues

        9.3%          


Sonic Automotive, Inc.

Earnings Per Share Reconciliation (Unaudited)

(Dollars in thousands, except per share data)

 

     First Quarter Ended March 31, 2012  
            Income (Loss)
From Continuing
Operations
     Income (Loss)
From Discontinued
Operations
        
              Net Income (Loss)  
     Weighted
Average
Shares
     Amount     Per
Share
Amount
     Amount      Per
Share
Amount
     Amount     Per
Share
Amount
 

Earnings (loss) and shares

     52,224       $ 19,466         $ 1,032          $ 20,498     

Effect of participating securities:

                  

Non-vested restricted stock and stock units

     -         (303        -            (303  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Basic earnings (loss) and shares

     52,224       $ 19,163      $ 0.37       $ 1,032       $ 0.02       $ 20,195      $ 0.39   

Effect of dilutive securities:

                  

Contingently convertible debt (5.0% Convertible Notes)

     11,676         2,167           5            2,172     

Stock compensation plans

     520                   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Diluted earnings (loss) and shares

     64,420       $ 21,330      $ 0.33       $ 1,037       $ 0.02       $ 22,367      $ 0.35   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

     First Quarter Ended March 31, 2011  
            Income (Loss)
From Continuing
Operations
     Income (Loss)
From Discontinued
Operations
       
             Net Income (Loss)  
     Weighted
Average
Shares
     Amount     Per
Share
Amount
     Amount     Per
Share
Amount
    Amount     Per
Share
Amount
 

Earnings (loss) and shares

     52,416       $ 15,684         $ (720     $ 14,964     

Effect of participating securities:

                

Non-vested restricted stock and stock units

     -         (205        -          (205  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings (loss) and shares

     52,416       $ 15,479      $ 0.30       $ (720   $ (0.02   $ 14,759      $ 0.28   

Effect of dilutive securities:

                

Contingently convertible debt (5.0% Convertible Notes)

     12,890         2,296           14          2,310     

Stock compensation plans

     644                 
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings (loss) and shares

     65,950       $ 17,775      $ 0.27       $ (706   $ (0.01   $ 17,069      $ 0.26