EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Sonic Automotive, Inc. Reports All-Time Record Pre-Owned Unit Sales and Total Gross Profit

CHARLOTTE, N.C. – July 22, 2014 – Sonic Automotive, Inc. (NYSE: SAH), one of the nation’s largest automotive retailers, today reported net income from continuing operations for the second quarter of 2014 of $27.1 million, or $0.51 per fully diluted share. Net income from continuing operations for the second quarter of 2013 was $8.7 million, or $0.16 per fully diluted share. Results for the second quarter of 2014 include a net pre-tax gain of approximately $5.9 million, or $0.07 per diluted share, related to a gain on disposal of franchises, partially offset by hail damage and legal settlement charges. Results for the second quarter of 2013 include a pre-tax charge of approximately $29.0 million, or $0.34 per diluted share, related to costs associated with retiring all of its outstanding 9.0% Senior Subordinated Notes due 2018 (the “9% Notes”).

Expenses attributable to Sonic’s stand-alone pre-owned store initiative were $3.2 million, or $0.04 per fully diluted share, in the second quarter of 2014 compared to $0.7 million, or $0.01 per fully diluted share, in the prior year quarter.

Q2 2014 Highlights:

•

New retail gross profit up 10.9% on a 3.4% increase in unit sales volume

•

New retail vehicle revenue up $83.5 million, or 7.0%

•

All-time record pre-owned sales of 28,514 units in Q2 2014

•

Pre-owned vehicle revenue up $64.9 million, or 12.0%

•

Pre-owned unit sales per store per month reached 100 units in May 2014 and 93 units for Q2 2014

•

All-time record quarterly fixed operations gross profit in Q2 2014 of $159.9 million, up $8.7 million, or 5.8%, over the prior year quarter

•

All-time record total gross profit in Q2 2014 of $346.9 million, up $23.1 million, or 7.1%, over the prior year quarter

B. Scott Smith, the Company’s President, noted, “We posted a solid performance in the second quarter growing the top-line and gross profit in every revenue category. We are also very excited about the kick-off of our One Sonic-One Experience initiative in our Charlotte market during the third quarter of 2014. This initiative, combined with our pre-owned store initiative which we plan to open in Denver, Colorado during the fourth quarter of 2014, is one of the cornerstones which will enable Sonic to rapidly grow in the future.”

Jeff Dyke, Sonic’s EVP of Operations, stated, “We had a fantastic quarter, achieving another significant milestone. In the month of May, we retailed 100 pre-owned vehicles per store per month. This was a goal we set for ourselves over three years ago and we know we can continue to build on this accomplishment. This sales velocity in our pre-owned business also fueled exceptional results in fixed operations as well as in our finance and insurance areas. These two areas delivered total gross profit of $237 million, another all-time record. Growth in these two areas generated an additional $16.2 million of gross profit in the second quarter of 2014.”

Second 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: 1.877.450.3867

International: 1.706.643.0958

Conference ID: 76537422

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: 76537422

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 earnings per share from continuing operations, expected expense impacts of our company’s stand-alone pre-owned store initiative, anticipated growth in new vehicle sales, and anticipated future success and impacts from the implementation of our planned customer experience and stand-alone pre-owned store 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, 2013. The Company does not undertake any obligation to update forward-looking information.

###


Contact:		Heath Byrd, Chief Financial Officer (704) 566-2400
		C.G. Saffer, Vice President and Chief Accounting Officer (704) 566-2439

Sonic Automotive, Inc.

Results of Operations (Unaudited)

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.


	Second Quarter Ended June 30, 2014									Second Quarter Ended June 30, 2013
	Reported			Adjustments			Adjusted			Reported			Adjustments			Adjusted
	(In thousands, except per share and unit data)
Revenues:
New retail vehicles	$	1,283,231		$	—		$	1,283,231		$	1,199,709		$	—		$	1,199,709
Fleet vehicles		15,546			—			15,546			47,452			—			47,452

Total new vehicles		1,298,777			—			1,298,777			1,247,161			—			1,247,161
Used vehicles		603,868			—			603,868			538,977			—			538,977
Wholesale vehicles		44,765			—			44,765			40,032			—			40,032

Total vehicles		1,947,410			—			1,947,410			1,826,170			—			1,826,170
Parts, service and collision repair		329,134			—			329,134			307,046			—			307,046
Finance, insurance and other, net		76,736			—			76,736			69,220			—			69,220

Total revenues		2,353,280			—			2,353,280			2,202,436			—			2,202,436
Gross profit		346,947			—			346,947			323,806			—			323,806
Selling, general and administrative expenses		(268,914	)		(5,911	) (1)		(274,825	)		(248,090	)		—			(248,090	)
Impairment charges		(4	)					(4	)		(36	)		—			(36	)
Depreciation and amortization		(14,431	)		—			(14,431	)		(13,144	)		—			(13,144	)

Operating income (loss)		63,598			(5,911	)		57,687			62,536			—			62,536
Other income (expense):
Interest expense, floor plan		(4,846	)		—			(4,846	)		(5,591	)		—			(5,591	)
Interest expense, other, net		(13,865	)		—			(13,865	)		(14,390	)		788	(2)		(13,602	)
Other income (expense), net		3			—			3			(28,265	)		28,235	(3)		(30	)

Total other income (expense)		(18,708	)		—			(18,708	)		(48,246	)		29,023			(19,223	)

Income (loss) from continuing operations before taxes		44,890			(5,911	)		38,979			14,290			29,023			43,313
Provision for income taxes - benefit (expense)		(17,829	)		2,305			(15,524	)		(5,573	)		(11,319	)		(16,892	)

Income (loss) from continuing operations		27,061			(3,606	)		23,455			8,717			17,704			26,421

Income (loss) from discontinued operations		(68	)		—			(68	)		199			—			199

Net income (loss)	$	26,993		$	(3,606	)	$	23,387		$	8,916		$	17,704		$	26,620

Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations	$	0.51		$	(0.07	)	$	0.44		$	0.16		$	0.34		$	0.50
Earnings (loss) per share from discontinued operations		—			—			—			0.01			(0.01	)		—

Earnings (loss) per common share	$	0.51		$	(0.07	)	$	0.44		$	0.17		$	0.33		$	0.50

Weighted average common shares outstanding		52,930						52,930			52,942						52,942
Gross Margin Data (Continuing Operations):
New retail vehicles		5.8	%					5.8	%		5.5	%					5.5	%
Fleet vehicles		2.3	%					2.3	%		2.6	%					2.6	%
Total new vehicles		5.7	%					5.7	%		5.4	%					5.4	%
Used vehicles		6.2	%					6.2	%		7.0	%					7.0	%
Wholesale vehicles		(2.9	%)					(2.9	%)		(4.9	%)					(4.9	%)
Parts, service and collision repair		48.6	%					48.6	%		49.2	%					49.2	%
Finance, insurance and other		100.0	%					100.0	%		100.0	%					100.0	%
Overall gross margin		14.7	%					14.7	%		14.7	%					14.7	%
SG&A Expenses (Continuing Operations):
Compensation (4)	$	163,109								$	149,528
Advertising		13,864									13,718
Rent (5)		18,643									18,421
Other (6)		73,298									66,423

Total SG&A expenses	$	268,914		$	5,911		$	274,825		$	248,090		$	—		$	248,090
SG&A expenses as % of gross profit		77.5	%					79.2	%		76.6	%					76.6	%
Operating Margin %		2.7	%					2.5	%		2.8	%					2.8	%

Unit Data (Continuing Operations):
New retail units		34,847									33,685
Fleet units		558									1,717

Total new units		35,405									35,402
Used units		28,514									26,599
Wholesale units		7,738									7,257

(1)	Represents gain on disposal of dealerships, loss from hail damage and legal expenses.

(2)	Represents double-carry interest on 9.0% Notes.

(3)	Represents loss on extinguishment of 9.0% Notes.

(4)	Included in SG&A Compensation expense are amounts attributable to Sonic’s stand-alone pre-owned store initiative of $1.2 million and $0.6 million in the second quarter of 2014 and 2013, respectively.

(5)	Included in SG&A Rent expense is an amount attributable to Sonic’s stand-alone pre-owned store initiative of $0.1 million in the second quarter of 2014.

(6)	Included in SG&A Other expense are amounts attributable to Sonic’s stand-alone pre-owned store initiative of $1.9 million and $0.1 million in the second quarter of 2014 and 2013, respectively.

Sonic Automotive, Inc.

Results of Operations (Unaudited)


	Six Months Ended June 30, 2014									Six Months Ended June 30, 2013
	Reported			Adjustments			Adjusted			Reported			Adjustments			Adjusted
	(In thousands, except per share and unit data)
Revenues:
New retail vehicles	$	2,395,521		$	—		$	2,395,521		$	2,300,818		$	—		$	2,300,818
Fleet vehicles		49,876			—			49,876			89,399			—			89,399

Total new vehicles		2,445,397			—			2,445,397			2,390,217			—			2,390,217
Used vehicles		1,163,684			—			1,163,684			1,065,158			—			1,065,158
Wholesale vehicles		86,363			—			86,363			91,825			—			91,825

Total vehicles		3,695,444			—			3,695,444			3,547,200			—			3,547,200
Parts, service and collision repair		647,905			—			647,905			603,689			—			603,689
Finance, insurance and other, net		146,317			—			146,317			134,714			—			134,714

Total revenues		4,489,666			—			4,489,666			4,285,603			—			4,285,603
Gross profit		675,947			—			675,947			636,826			—			636,826
Selling, general and administrative expenses		(532,887	)		(5,911	) (1)		(538,798	)		(493,914	)		—			(493,914	)
Impairment charges		(7	)		—			(7	)		(51	)		—			(51	)
Depreciation and amortization		(28,812	)		—			(28,812	)		(25,278	)		—			(25,278	)

Operating income (loss)		114,241			(5,911	)		108,330			117,583			—			117,583
Other income (expense):
Interest expense, floor plan		(9,535	)		—			(9,535	)		(10,804	)		—			(10,804	)
Interest expense, other, net		(27,683	)		—			(27,683	)		(28,749	)		788	(2)		(27,961	)
Other income (expense), net		100			—			100			(28,170	)		28,235	(3)		65

Total other income (expense)		(37,118	)		—			(37,118	)		(67,723	)		29,023			(38,700	)

Income (loss) from continuing operations before taxes		77,123			(5,911	)		71,212			49,860			29,023			78,883
Provision for income taxes - benefit (expense)		(30,078	)		2,305			(27,773	)		(19,445	)		(11,319	)		(30,764	)

Income (loss) from continuing operations		47,045			(3,606	)		43,439			30,415			17,704			48,119

Income (loss) from discontinued operations		(666	)		—			(666	)		(208	)		—			(208	)

Net income (loss)	$	46,379		$	(3,606	)	$	42,773		$	30,207		$	17,704		$	47,911

Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations	$	0.89		$	(0.07	)	$	0.82		$	0.57		$	0.33		$	0.90
Earnings (loss) per share from discontinued operations		(0.02	)		0.01			(0.01	)		—			—			—

Earnings (loss) per common share	$	0.87		$	(0.06	)	$	0.81		$	0.57		$	0.33		$	0.90

Weighted average common shares outstanding		52,938						52,938			52,937						52,937

Gross Margin Data (Continuing Operations):
New retail vehicles		5.8	%					5.8	%		5.7	%					5.7	%
Fleet vehicles		2.5	%					2.5	%		2.8	%					2.8	%
Total new vehicles		5.8	%					5.8	%		5.6	%					5.6	%
Used vehicles		6.7	%					6.7	%		7.1	%					7.1	%
Wholesale vehicles		(1.6	%)					(1.6	%)		(3.4	%)					(3.4	%)
Parts, service and collision repair		48.2	%					48.2	%		48.9	%					48.9	%
Finance, insurance and other		100.0	%					100.0	%		100.0	%					100.0	%
Overall gross margin		15.1	%					15.1	%		14.9	%					14.9	%

SG&A Expenses (Continuing Operations):
Compensation (4)	$	320,263								$	298,108
Advertising		27,982									27,150
Rent (5)		37,178									37,444
Other (6)		147,464									131,212

Total SG&A expenses	$	532,887		$	5,911		$	538,798		$	493,914		$	—		$	493,914
SG&A expenses as % of gross profit		78.8	%					79.7	%		77.6	%					77.6	%
Operating Margin %		2.5	%					2.4	%		2.7	%					2.7	%

Unit Data (Continuing Operations):
New retail units		64,876									64,275
Fleet units		1,660									3,210

Total new units		66,536									67,485
Used units		56,171									53,068
Wholesale units		15,118									15,650

(1)	Represents gain on disposal of dealerships, loss from hail damage and legal expenses.

(2)	Represents double-carry interest on 9.0% Notes.

(3)	Represents loss on extinguishment of 9.0% Notes.

(4)	Included in SG&A Compensation expense are amounts attributable to Sonic’s stand-alone pre-owned store initiative of $2.7 million and $1.1 million in the six months ended June 30, 2014 and 2013, respectively.

(5)	Included in SG&A Rent expense is an amount attributable to Sonic’s stand-alone pre-owned store initiative of $0.1 million in the six months ended June 30, 2014.

(6)	Included in SG&A Other expense are amounts attributable to Sonic’s stand-alone pre-owned store initiative of $2.2 million and $0.4 million in the six months ended June 30, 2014 and 2013, respectively.

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Per Share Data


	Second Quarter Ended June 30, 2014
			Income (Loss)						Income (Loss)
			From Continuing						From Discontinued
			Operations						Average					Net Income (Loss)
	Weighted					Per						Per					Per
	Average					Share						Share					Share
	Shares		Amount			Amount			Shares			Amount		Amount			Amount
	(In thousands, except per share amounts)
Reported:
Earnings (loss) and shares		52,514	$	27,061					$	(68	)			$	26,993
Effect of participating securities:
Non-vested restricted stock and stock units				(87	)					—					(87	)

Basic earnings (loss) and shares		52,514	$	26,974		$	0.51		$	(68	)	$	—	$	26,906		$	0.51
Effect of dilutive securities:
Stock compensation plans		416

Diluted earnings (loss) and shares		52,930	$	26,974		$	0.51		$	(68	)	$	—	$	26,906		$	0.51

Adjustments (net of tax):
Hail and legal			$	840		$	0.01		$	—		$	—	$	840		$	0.01
Gain on disposal of franchises				(4,446	)		(0.08	)		—			—		(4,446	)		(0.08	)

Total adjustments			$	(3,606	)	$	(0.07	)	$	—		$	—	$	(3,606	)	$	(0.07	)
Adjusted:

Diluted earnings (loss) per share (1)						$	0.44					$	—				$	0.44

(1)	Expenses attributable to Sonic’s stand-alone pre-owned store initiative were $0.04 per fully diluted share in the second quarter of 2014.


	Second Quarter Ended June 30, 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
	(In thousands, except per share amounts)
Reported:
Earnings (loss) and shares		52,597	$	8,717				$	199				$	8,916
Effect of participating securities:
Non-vested restricted stock and stock units				(63	)				—					(63	)

Basic earnings (loss) and shares		52,597	$	8,654		$	0.16	$	199	$	0.01		$	8,853		$	0.17
Effect of dilutive securities:
Stock compensation plans		345

Diluted earnings (loss) and shares		52,942	$	8,654		$	0.16	$	199	$	0.01		$	8,853		$	0.17

Adjustments (net of tax):
Double-carry interest			$	481		$	0.01	$	—	$	—		$	481		$	0.01
Debt extinguishment charges				17,223			0.33		—		—			17,223			0.33
Effect of two-class method & rounding				(129	)		—		—		(0.01	)		(129	)		(0.01	)

Total adjustments			$	17,575		$	0.34	$	—	$	(0.01	)	$	17,575		$	0.33
Adjusted:

Diluted earnings (loss) per share (2)						$	0.50			$	—					$	0.50

(2)	Expenses attributable to Sonic’s stand-alone pre-owned store initiative were $0.01 per fully diluted share in the second quarter of 2013.

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Per Share Data


	Six Months Ended June 30, 2014
			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
	(In thousands, except per share amounts)
Reported:
Earnings (loss) and shares		52,466	$	47,045					$	(666	)				$	46,379
Effect of participating securities:
Non-vested restricted stock and stock units				(151	)					—						(151	)

Basic earnings (loss) and shares		52,466	$	46,894		$	0.89		$	(666	)	$	(0.01	)	$	46,228		$	0.88
Effect of dilutive securities:
Stock compensation plans		472

Diluted earnings (loss) and shares		52,938	$	46,894		$	0.89		$	(666	)	$	(0.02	)	$	46,228		$	0.87

Adjustments (net of tax):
Hail and legal			$	840		$	0.01		$	—		$	—		$	840		$	0.01
Gain on disposal of franchises				(4,446	)		(0.08	)		—			—			(4,446	)		(0.08	)
Effect of two-class method & rounding				12			—			—			0.01			12			0.01

Total adjustments			$	(3,594	)	$	(0.07	)	$	—		$	0.01		$	(3,594	)	$	(0.06	)
Adjusted:

Diluted earnings (loss) per share (3)						$	0.82					$	(0.01	)				$	0.81

(3)	Expenses attributable to Sonic’s stand-alone pre-owned store initiative were $0.05 per fully diluted share in the six months ended June 30, 2014.


	Six Months Ended June 30, 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
	(In thousands, except per share amounts)
Reported:
Earnings (loss) and shares		52,591	$	30,415					$	(208	)			$	30,207
Effect of participating securities:
Non-vested restricted stock and stock units				(229	)					—					(229	)

Basic earnings (loss) and shares		52,591	$	30,186		$	0.57		$	(208	)	$	—	$	29,978		$	0.57
Effect of dilutive securities:
Stock compensation plans		346

Diluted earnings (loss) and shares		52,937	$	30,186		$	0.57		$	(208	)	$	—	$	29,978		$	0.57

Adjustments (net of tax):
Double-carry interest			$	481		$	0.01		$	—		$	—	$	481		$	0.01
Debt extinguishment charges				17,223			0.33			—			—		17,223			0.33
Effect of two-class method & rounding				(129	)		(0.01	)		—			—		(129	)		(0.01	)

Total adjustments			$	17,575		$	0.33		$	—		$	—	$	17,575		$	0.33

Adjusted:

Diluted earnings (loss) per share (4)						$	0.90					$	—				$	0.90

(4)	Expenses attributable to Sonic’s stand-alone pre-owned store initiative were $0.02 per fully diluted share in the six months ended June 30, 2013.

Sonic Automotive, Inc.

Results of Operations (Unaudited)

New Vehicles


	Second Quarter Ended June 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	1,298,777		$	1,247,161		$	51,616			4.1	%
Gross profit	$	74,193		$	67,790		$	6,403			9.4	%
Unit sales		35,405			35,402			3			0.0	%
Revenue per unit	$	36,683		$	35,229		$	1,454			4.1	%
Gross profit per unit	$	2,096		$	1,915		$	181			9.5	%
Gross profit as a % of revenue		5.7	%		5.4	%		30			bps

	Six Months Ended June 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	2,445,397		$	2,390,217		$	55,180			2.3	%
Gross profit	$	140,866		$	134,259		$	6,607			4.9	%
Unit sales		66,536			67,485			(949	)		(1.4	%)
Revenue per unit	$	36,753		$	35,418		$	1,335			3.8	%
Gross profit per unit	$	2,117		$	1,989		$	128			6.4	%
Gross profit as a % of revenue		5.8	%		5.6	%		20			bps

	Second Quarter Ended June 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	1,263,004		$	1,235,935		$	27,069			2.2	%
Gross profit	$	72,025		$	67,142		$	4,883			7.3	%
Unit sales		34,713			35,164			(451	)		(1.3	%)
Revenue per unit	$	36,384		$	35,148		$	1,236			3.5	%
Gross profit per unit	$	2,075		$	1,909		$	166			8.7	%
Gross profit as a % of revenue		5.7	%		5.4	%		30			bps

	Six Months Ended June 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	2,382,051		$	2,367,467		$	14,584			0.6	%
Gross profit	$	136,613		$	132,604		$	4,009			3.0	%
Unit sales		65,306			66,983			(1,677	)		(2.5	%)
Revenue per unit	$	36,475		$	35,344		$	1,131			3.2	%
Gross profit per unit	$	2,092		$	1,980		$	112			5.7	%
Gross profit as a % of revenue		5.7	%		5.6	%		10			bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Used Vehicles


	Second Quarter Ended June 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	603,868		$	538,977		$	64,891			12.0	%
Gross profit	$	37,473		$	37,609		$	(136	)		(0.4	%)
Unit sales		28,514			26,599			1,915			7.2	%
Revenue per unit	$	21,178		$	20,263		$	915			4.5	%
Gross profit per unit	$	1,314		$	1,414		$	(100	)		(7.1	%)
Gross profit as a % of revenue		6.2	%		7.0	%		(80	)		bps

	Six Months Ended June 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	1,163,684		$	1,065,158		$	98,526			9.2	%
Gross profit	$	78,167		$	75,639		$	2,528			3.3	%
Unit sales		56,171			53,068			3,103			5.8	%
Revenue per unit	$	20,717		$	20,072		$	645			3.2	%
Gross profit per unit	$	1,392		$	1,425		$	(33	)		(2.3	%)
Gross profit as a % of revenue		6.7	%		7.1	%		(40	)		bps

	Second Quarter Ended June 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	582,386		$	530,567		$	51,819			9.8	%
Gross profit	$	36,675		$	37,711		$	(1,036	)		(2.7	%)
Unit sales		27,617			26,226			1,391			5.3	%
Revenue per unit	$	21,088		$	20,231		$	857			4.2	%
Gross profit per unit	$	1,328		$	1,438		$	(110	)		(7.6	%)
Gross profit as a % of revenue		6.3	%		7.1	%		(80	)		bps

	Six Months Ended June 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	1,122,929		$	1,047,365		$	75,564			7.2	%
Gross profit	$	76,093		$	74,435		$	1,658			2.2	%
Unit sales		54,458			52,292			2,166			4.1	%
Revenue per unit	$	20,620		$	20,029		$	591			3.0	%
Gross profit per unit	$	1,397		$	1,423		$	(26	)		(1.8	%)
Gross profit as a % of revenue		6.8	%		7.1	%		(30	)		bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Wholesale Vehicles


	Second Quarter Ended June 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	44,765		$	40,032		$	4,733			11.8	%
Gross profit (loss)	$	(1,314	)	$	(1,943	)	$	629			32.4	%
Unit sales		7,738			7,257			481			6.6	%
Revenue per unit	$	5,785		$	5,516		$	269			4.9	%
Gross profit (loss) per unit	$	(170	)	$	(268	)	$	98			36.6	%
Gross profit (loss) as a % of revenue		(2.9	%)		(4.9	%)		200			bps

	Six Months Ended June 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	86,363		$	91,825		$	(5,462	)		(5.9	%)
Gross profit (loss)	$	(1,409	)	$	(3,145	)	$	1,736			55.2	%
Unit sales		15,118			15,650			(532	)		(3.4	%)
Revenue per unit	$	5,713		$	5,867		$	(154	)		(2.6	%)
Gross profit (loss) per unit	$	(93	)	$	(201	)	$	108			53.7	%
Gross profit (loss) as a % of revenue		(1.6	%)		(3.4	%)		180			bps

	Second Quarter Ended June 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	43,638		$	39,729		$	3,909			9.8	%
Gross profit (loss)	$	(1,275	)	$	(1,872	)	$	597			31.9	%
Unit sales		7,573			7,195			378			5.3	%
Revenue per unit	$	5,762		$	5,522		$	240			4.3	%
Gross profit (loss) per unit	$	(168	)	$	(260	)	$	92			35.4	%
Gross profit (loss) as a % of revenue		(2.9	%)		(4.7	%)		180			bps

	Six Months Ended June 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	83,949		$	90,646		$	(6,697	)		(7.4	%)
Gross profit (loss)	$	(1,247	)	$	(2,995	)	$	1,748			58.4	%
Unit sales		14,804			15,497			(693	)		(4.5	%)
Revenue per unit	$	5,671		$	5,849		$	(178	)		(3.0	%)
Gross profit (loss) per unit	$	(84	)	$	(193	)	$	109			56.5	%
Gross profit (loss) as a % of revenue		(1.5	%)		(3.3	%)		180			bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Parts, Service and Collision Repair (“Fixed Operations”)


	Second Quarter Ended June 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands)
Reported:
Revenue
Customer pay	$	145,040		$	136,343		$	8,697			6.4	%
Warranty		47,050			47,270			(220	)		(0.5	%)
Wholesale parts		47,145			40,982			6,163			15.0	%
Internal, sublet and other		89,899			82,451			7,448			9.0	%

Total	$	329,134		$	307,046		$	22,088			7.2	%

Gross profit
Customer pay	$	79,606		$	75,166		$	4,440			5.9	%
Warranty		25,671			26,388			(717	)		(2.7	%)
Wholesale parts		8,308			7,658			650			8.5	%
Internal, sublet and other		46,274			41,918			4,356			10.4	%

Total	$	159,859		$	151,130		$	8,729			5.8	%

Gross profit as a % of revenue
Customer pay		54.9	%		55.1	%		(20	)		bps
Warranty		54.6	%		55.8	%		(120	)		bps
Wholesale parts		17.6	%		18.7	%		(110	)		bps
Internal, sublet and other		51.5	%		50.8	%		70			bps

Total		48.6	%		49.2	%		(60	)		bps

	Six Months Ended June 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands)
Reported:
Revenue
Customer pay	$	286,162		$	270,146		$	16,016			5.9	%
Warranty		93,641			92,084			1,557			1.7	%
Wholesale parts		95,089			81,520			13,569			16.6	%
Internal, sublet and other		173,013			159,939			13,074			8.2	%

Total	$	647,905		$	603,689		$	44,216			7.3	%

Gross profit
Customer pay	$	157,605		$	149,282		$	8,323			5.6	%
Warranty		50,909			50,283			626			1.2	%
Wholesale parts		16,469			15,277			1,192			7.8	%
Internal, sublet and other		87,023			80,517			6,506			8.1	%

Total	$	312,006		$	295,359		$	16,647			5.6	%

Gross profit as a % of revenue
Customer pay		55.1	%		55.3	%		(20	)		bps
Warranty		54.4	%		54.6	%		(20	)		bps
Wholesale parts		17.3	%		18.7	%		(140	)		bps
Internal, sublet and other		50.3	%		50.3	%		0			bps

Total		48.2	%		48.9	%		(70	)		bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Parts, Service and Collision Repair (“Fixed Operations”)


	Second Quarter Ended June 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands)
Same Store:
Revenue
Customer pay	$	138,668		$	134,870		$	3,798			2.8	%
Warranty		45,184			46,542			(1,358	)		(2.9	%)
Wholesale parts		45,704			40,819			4,885			12.0	%
Internal, sublet and other		87,173			81,519			5,654			6.9	%

Total	$	316,729		$	303,750		$	12,979			4.3	%

Gross profit
Customer pay	$	76,361		$	74,408		$	1,953			2.6	%
Warranty		24,665			25,989			(1,324	)		(5.1	%)
Wholesale parts		7,832			7,632			200			2.6	%
Internal, sublet and other		44,711			41,350			3,361			8.1	%

Total	$	153,569		$	149,379		$	4,190			2.8	%

Gross profit as a % of revenue
Customer pay		55.1	%		55.2	%		(10	)		bps
Warranty		54.6	%		55.8	%		(120	)		bps
Wholesale parts		17.1	%		18.7	%		(160	)		bps
Internal, sublet and other		51.3	%		50.7	%		60			bps

Total		48.5	%		49.2	%		(70	)		bps

	Six Months Ended June 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands)
Same Store:
Revenue
Customer pay	$	273,161		$	266,837		$	6,324			2.4	%
Warranty		89,781			90,570			(789	)		(0.9	%)
Wholesale parts		92,110			81,212			10,898			13.4	%
Internal, sublet and other		167,946			157,956			9,990			6.3	%

Total	$	622,998		$	596,575		$	26,423			4.4	%

Gross profit
Customer pay	$	150,941		$	147,661		$	3,280			2.2	%
Warranty		48,828			49,745			(917	)		(1.8	%)
Wholesale parts		15,622			15,230			392			2.6	%
Internal, sublet and other		84,046			79,278			4,768			6.0	%

Total	$	299,437		$	291,914		$	7,523			2.6	%

Gross profit as a % of revenue
Customer pay		55.3	%		55.3	%		0			bps
Warranty		54.4	%		54.9	%		(50	)		bps
Wholesale parts		17.0	%		18.8	%		(180	)		bps
Internal, sublet and other		50.0	%		50.2	%		(20	)		bps

Total		48.1	%		48.9	%		(80	)		bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Finance, Insurance and Other, Net (“F&I”)


	Second Quarter Ended June 30,				Better / (Worse)
	2014		2013		Change		% Change
	(In thousands, except per unit data)
Reported:
Revenue	$	76,736	$	69,220	$	7,516		10.9	%
Gross profit per retail unit (excludes fleet)	$	1,211	$	1,148	$	63		5.5	%

	Six Months Ended June 30,				Better / (Worse)
	2014		2013		Change		% Change
	(In thousands, except per unit data)
Reported:
Revenue	$	146,317	$	134,714	$	11,603		8.6	%
Gross profit per retail unit (excludes fleet)	$	1,209	$	1,148	$	61		5.3	%

	Second Quarter Ended June 30,				Better / (Worse)
	2014		2013		Change		% Change
	(In thousands, except per unit data)
Same Store:
Revenue	$	74,916	$	68,765	$	6,151		8.9	%
Gross profit per retail unit (excludes fleet)	$	1,213	$	1,152	$	61		5.3	%

	Six Months Ended June 30,				Better / (Worse)
	2014		2013		Change		% Change
	(In thousands, except per unit data)
Same Store:
Revenue	$	142,847	$	133,826	$	9,021		6.7	%
Gross profit per retail unit (excludes fleet)	$	1,210	$	1,153	$	57		4.9	%

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Selling, General and Administrative (“SG&A”) Expenses


	Second Quarter Ended June 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands)
Compensation	$	163,109		$	149,528		$	(13,581	)		(9.1	%)
Advertising		13,864			13,718			(146	)		(1.1	%)
Rent		18,643			18,421			(222	)		(1.2	%)
Other		73,298			66,423			(6,875	)		(10.4	%)

Total	$	268,914		$	248,090		$	(20,824	)		(8.4	%)

SG&A expenses as a % of gross profit
Compensation		47.0	%		46.2	%		(80	)		bps
Advertising		4.0	%		4.2	%		20			bps
Rent		5.4	%		5.7	%		30			bps
Other		21.1	%		20.5	%		(60	)		bps

Total		77.5	%		76.6	%		(90	)		bps

	Six Months Ended June 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands)
Compensation	$	320,263		$	298,108		$	(22,155	)		(7.4	%)
Advertising		27,982			27,150			(832	)		(3.1	%)
Rent		37,178			37,444			266			0.7	%
Other		147,464			131,212			(16,252	)		(12.4	%)

Total	$	532,887		$	493,914		$	(38,973	)		(7.9	%)

SG&A expenses as a % of gross profit
Compensation		47.4	%		46.8	%		(60	)		bps
Advertising		4.1	%		4.3	%		20			bps
Rent		5.5	%		5.9	%		40			bps
Other		21.8	%		20.6	%		(120	)		bps

Total		78.8	%		77.6	%		(120	)		bps