Exhibit 99.1

FOR IMMEDIATE RELEASE

Sonic Automotive, Inc. Posts 14% Increase in EPS

Record Q1 Revenues and Profit

CHARLOTTE, N.C. April 23, 2013 Sonic Automotive, Inc. (NYSE: SAH), one of the nation’s largest automotive retailers, today reported record first quarter earnings from continuing operations in 2013 of $21.7 million for a 2.6% increase over the prior year results. Continuing operations earnings per diluted share increased 13.9% to $0.41 compared to $0.36 in the prior year quarter.

Q1 2013 Highlights- Record Q1 Continuing Operations Net Income and Revenues; Continuing Operations Diluted EPS up 14%; Record Q1 New and Used Retail Vehicle Volumes

 

   

Record Q1 continuing operations net income of $21.7 million

 

   

Total Q1 revenues up 8.1% over prior year quarter

 

   

Record Q1 retail volumes – new vehicle retail of 30,590 units – used vehicle retail of 26,469 units

 

   

New vehicle retail revenue up 11.7% over prior year quarter

 

   

Record used vehicle sales volume in March retailing nearly 9,400 vehicles for the month

 

   

Parts and Service gross profit up 1.0% over prior year quarter (up 4.2% adjusted for two less selling days in 1Q2013)

 

   

Total gross profit up 3.1% over prior year quarter

B. Scott Smith, the Company’s President, noted, “For 14 consecutive quarters, we have grown revenue when compared to the prior year without adding any dealerships, and are pleased with the quarter’s operating and financial results. Our operating performance continues to improve year-over-year, as we have focused on executing our playbooks and being Predictable, Repeatable and Sustainable. This is our year to execute.”

Jeff Dyke, Sonic’s EVP of Operations, stated, “Our new and used vehicle growth in the first quarter grew at a record pace breaking an all-time sales record for used cars in the month of March. Our new vehicle retail volume, which increased 7.4%, continues to show growth as we continue to focus on the customer experience, execution of our process and implementation of True Price. We are excited about the possibilities of further improvement in the coming months.”

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”.


The conference call will also be available live by dialing in 10 minutes prior to the start of the call at:

Domestic: 1.877.791.3416

International: 1.706.643.0958

Conference ID: 34425848

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

Domestic: 1.855.859.2056

International: 1.404.537.3406

Conference ID: 34425848

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 anticipated future success and impacts from the implementation of our planned 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, 2012. The Company does not undertake any obligation to update forward-looking information.


Sonic Automotive, Inc.

Results of Operations (Unaudited)

(Dollars and shares in thousands, except per share amounts)

This release contains certain non-GAAP financial measures (the “Adjusted” columns) as defined under SEC rules, such as, but not limited to, adjusted income from continuing operations and related earnings per share data. The Company has reconciled these measures to the most directly comparable GAAP measures (the “Reported” columns) in the release. The Company believes that these non-GAAP financial measures improve the transparency of the Company’s disclosure by providing period-to-period comparability of the Company’s results from operations.

 

     First Quarter Ended  
     March 31,  
     2013     2012  

Revenues:

    

New retail vehicles

   $ 1,101,109      $ 986,032   

Fleet vehicles

     41,947        45,358   
  

 

 

   

 

 

 

Total new vehicles

     1,143,056        1,031,390   

Used vehicles

     526,182        501,864   

Wholesale vehicles

     51,792        43,673   
  

 

 

   

 

 

 

Total vehicles

     1,721,030        1,576,927   

Parts, service and collision repair

     296,642        292,555   

Finance, insurance and other

     65,494        57,584   
  

 

 

   

 

 

 

Total revenues

     2,083,166        1,927,066   

Gross profit

     313,020        303,754   

Selling, general and administrative expenses

     (245,824     (237,149

Impairment charges

     (15     (1

Depreciation and amortization

     (12,134     (10,895
  

 

 

   

 

 

 

Operating income (loss)

     55,047        55,709   

Other income (expense):

    

Interest expense, floor plan

     (5,213     (4,263

Interest expense, other, net

     (14,359     (16,409

Other income (expense), net

     95        20   
  

 

 

   

 

 

 

Total other income (expense)

     (19,477     (20,652
  

 

 

   

 

 

 

Income (loss) from continuing operations before taxes

     35,570        35,057   

Provision for income taxes - benefit (expense)

     (13,873     (13,912
  

 

 

   

 

 

 

Income (loss) from continuing operations

     21,697        21,145   
  

 

 

   

 

 

 

Income (loss) from discontinued operations

     (406     (647
  

 

 

   

 

 

 

Net income (loss)

   $ 21,291      $ 20,498   
  

 

 

   

 

 

 

Diluted earnings (loss) per common share:

    

Earnings (loss) per share from continuing operations

   $ 0.41      $ 0.36   

Earnings (loss) per share from discontinued operations

     (0.01     (0.01
  

 

 

   

 

 

 

Earnings (loss) per common share

   $ 0.40      $ 0.35   
  

 

 

   

 

 

 

Weighted average common shares outstanding

     52,931        64,420   

Gross Margin Data (Continuing Operations):

    

New retail vehicles

     5.9     6.3

Fleet vehicles

     3.0     3.4

Total new vehicles

     5.8     6.2

Used vehicles

     7.2     7.9

Wholesale vehicles

     (2.3 %)      0.5

Parts, service and collision repair

     48.6     48.8

Finance, insurance and other

     100.0     100.0

Overall gross margin

     15.0     15.8

SG&A Expenses (Continuing Operations):

    

Compensation

   $ 148,580      $ 142,184   

Advertising

     13,431        12,055   

Rent and rent related

     26,396        26,786   

Other

     57,417        56,124   
  

 

 

   

 

 

 

Total SG&A expenses

   $ 245,824      $ 237,149   

SG&A expenses as % of gross profit

     78.5     78.1

Operating Margin %

     2.6     2.9

Unit Data (Continuing Operations):

    

New retail units

     30,590        28,490   

Fleet units

     1,493        1,683   
  

 

 

   

 

 

 

Total new units

     32,083        30,173   

Used units

     26,469        25,478   

Wholesale units

     8,393        7,175   


Sonic Automotive, Inc.

Results of Operations (Unaudited)

(In thousands, except per share amounts)

 

     First Quarter Ended March 31, 2013  
            Income (Loss)      Income (Loss)              
            From Continuing      From Discontinued              
            Operations      Operations     Net Income (Loss)  
     Weighted            Per            Per           Per  
     Average            Share            Share           Share  
     Shares      Amount     Amount      Amount     Amount     Amount     Amount  

Reported:

                

Earnings (loss) and shares

     52,586       $ 21,697         $ (406     $ 21,291     

Effect of participating securities:

                

Non-vested restricted stock and stock units

        (170        —            (170  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings (loss) and shares

     52,586       $ 21,527      $ 0.41       $ (406   $ (0.01   $ 21,121      $ 0.40   

Effect of dilutive securities:

                

Stock compensation plans

     345                 
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings (loss) and shares

     52,931       $ 21,527      $ 0.41       $ (406   $ (0.01   $ 21,121      $ 0.40   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

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

Reported:

                

Earnings (loss) and shares

     52,224       $ 21,145         $ (647     $ 20,498     

Effect of participating securities:

                

Non-vested restricted stock and stock units

        (329        —            (329  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings (loss) and shares

     52,224       $ 20,816      $ 0.40       $ (647   $ (0.01   $ 20,169      $ 0.39   

Effect of dilutive securities:

                

Contingently convertible debt (5.0% Convertible Notes)

     11,676         2,125           47          2,172     

Stock compensation plans

     520                 
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings (loss) and shares

     64,420       $ 22,941      $ 0.36       $ (600   $ (0.01   $ 22,341      $ 0.35