Exhibit 99.1

Sonic Automotive, Inc. Reports First Quarter Results -
Record Revenue and Gross Profit
CHARLOTTE, N.C. – April 26, 2018 – Sonic Automotive, Inc. (NYSE: SAH), one of the nation’s largest automotive retailers, today reported financial results for the first quarter of 2018.

•
Record first quarter revenue and gross profit of $2.4 billion and $352.5 million, respectively
•
All-time record quarterly pre-owned retail unit sales of 33,739 units
•
All-time record quarterly F&I gross profit per retail unit of $1,490
•
Record first quarter F&I gross of $93.7 million
•
Record first quarter fixed operations gross profit of $169.6 million
•
Pre-owned segment retailed over 5,500 units during the quarter

First Quarter 2018 Results

GAAP Basis
Net loss from continuing operations for the first quarter of 2018 was $2.0 million, or $0.05 per diluted share. Comparatively, net loss from continuing operations for the first quarter of 2017 was $0.0 million, or $0.0 per diluted share.

Adjusted Basis

Adjusted net income from continuing operations and related earnings per diluted share are non-GAAP financial measures. The schedules included in this press release reconcile these non-GAAP financial measures to the most directly comparable GAAP financial measures.

Adjusted net income from continuing operations for the first quarter of 2018 was $11.0 million, or $0.26 per diluted share. The adjustments in the 2018 quarterly period relate to a gain on the disposal of franchises offset by fixed asset impairments, compensation related charges, lease exit accruals and certain legal matters. Adjusted net income from continuing operations for the first quarter of 2017 was $10.3 million, or $0.23 per diluted share. The adjustments in the 2017 quarterly period relate to the redemption of Sonic’s 7.0% Senior Subordinated Notes due 2022 (the “7.0% Notes”), weather-related physical damage costs and fixed asset impairments, offset by net settlement gains related to legal matters.

Commentary

Heath Byrd, the Company’s Chief Financial Officer, noted, “The first quarter met our internal earnings expectations and we remain confident with our full year earnings guidance. We shifted our strategy during the quarter related to the number of used vehicle inventory we are carrying. The decline in used gross per unit and the increase in wholesale loss resulted from us aggressively disposing of units to reduce our overall days’ supply of used vehicles. Additionally, we believe we found a good compromise between volume and gross for new vehicles and we were able to grow both fixed operations and F&I gross profit compared to the first quarter of 2017.”

“We remain committed to growing our franchise store operations and our EchoPark brand. In addition to our dividend of $0.06 per share distributed during the first quarter, we continue to honor our commitment to return capital to shareholders as we repurchased approximately 1.2 million shares of our common stock for approximately $23.4 million.”
Dividend

Sonic’s Board of Directors approved a quarterly dividend of $0.06 per share payable in cash for our stockholders of record on June 15, 2018. The dividend will be payable on July 13, 2018.



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: (877) 450-3867
International: (706) 643-0958
Conference ID: 9399998

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

Domestic: (855) 859-2056
International: (404) 537-3406
Conference ID: 9399998

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. More information about EchoPark Automotive can be found at www.echopark.com.

Forward-Looking Statements

Included herein are forward-looking statements, including statements with respect to our 2018 earnings expectations, our projected annual effective income tax rate, 2018 new vehicle industry volume, projected results for our EchoPark brand, the anticipated expansion of both our franchised and pre-owned businesses in 2018 and our long-term strategy. 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, 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 ended December 31, 2017. 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 Securities and Exchange Commission (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 and related earnings per diluted share, which exclude certain items disclosed in the attached financial tables. As required by SEC rules, the Company provides reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures. The Company believes that these non-GAAP financial measures improve the transparency of the Company’s disclosure, provide a meaningful presentation of the Company’s results from its core business operations excluding the impact of items not related to the Company’s ongoing core business operations, and improve the period-to-period comparability of the Company’s results from its core business operations.









Sonic Automotive, Inc.
Results of Operations (Unaudited)
Results of Operations
 
Three Months Ended
March 31,
 
2018
 
2017
 
(In thousands, except per share and unit data)
Revenues:
 
 
 
New vehicles
$
1,180,846

 
$
1,171,932

Used vehicles
709,046

 
634,474

Wholesale vehicles
65,398

 
46,310

Total vehicles
1,955,290

 
1,852,716

Parts, service and collision repair
351,758

 
352,043

Finance, insurance and other, net
93,725

 
83,063

Total revenues
2,400,773

 
2,287,822

Gross profit
352,499

 
350,346

Selling, general and administrative expenses
(304,925
)
 
(292,234
)
Impairment charges
(3,643
)
 
(510
)
Depreciation and amortization
(23,743
)
 
(21,153
)
Operating income (loss)
20,188

 
36,449

Other income (expense):
 
 
 
Interest expense, floor plan
(10,677
)
 
(8,387
)
Interest expense, other, net
(13,456
)
 
(13,409
)
Other income (expense), net
89

 
(14,501
)
Total other income (expense)
(24,044
)
 
(36,297
)
Income (loss) from continuing operations before taxes
(3,856
)
 
152

Provision for income taxes for continuing operations - benefit (expense)
1,842

 
(172
)
Income (loss) from continuing operations
(2,014
)
 
(20
)
Income (loss) from discontinued operations
(180
)
 
(521
)
Net income (loss)
$
(2,194
)
 
$
(541
)
 
 
 
 
Diluted earnings (loss) per common share:
 
 
 
Earnings (loss) per share from continuing operations
$
(0.05
)
 
$
—

Earnings (loss) per share from discontinued operations
—

 
(0.01
)
Earnings (loss) per common share
$
(0.05
)
 
$
(0.01
)
Weighted average common shares outstanding
42,789

 
44,791

Gross Margin Data (Continuing Operations):
 
 
 
New vehicles
4.8
 %
 
5.0
 %
Used vehicles
5.2
 %
 
6.4
 %
Wholesale vehicles
(6.8
)%
 
(2.5
)%
Parts, service and collision repair
48.2
 %
 
48.1
 %
Finance, insurance and other
100.0
 %
 
100.0
 %
Overall gross margin
14.7
 %
 
15.3
 %
 
 
 
 
SG&A Expenses (Continuing Operations):
 
 
 
Compensation
185,037

 
176,547

Advertising
16,016

 
15,257

Rent
21,868

 
18,487

Other
82,004

 
81,943

 
 
 
 
Total SG&A expenses
304,925

 
292,234

SG&A expenses as % of gross profit
86.5
 %
 
83.4
 %
 
 
 
 
Operating Margin %
0.8
 %
 
1.6
 %
 
 
 
 
Unit Data (Continuing Operations):
 
 
 
New units
29,500

 
30,495

Used units
33,739

 
30,372

Wholesale units
9,680

 
8,307






Sonic Automotive, Inc.
Results of Operations (Unaudited)
 
Per Share Data
 
Three Months Ended March 31, 2018
 
 
 
Income (Loss)
 
Income (Loss)
 
 
 
 
 
 
 
From Continuing
Operations
 
From Discontinued
Operations
 
Net
Income (Loss)
 
Weighted
Average
Shares
 
Amount
 
Per
Share
Amount
 
Amount
 
Per
Share
Amount
 
Amount
 
Per
Share
Amount
 
(In thousands, except per share amounts)
Reported:
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings (loss) and shares
42,789

 
$
(2,014
)
 

 
$
(180
)
 

 
$
(2,194
)
 

Effect of participating securities:

 

 

 

 

 

 

Non-vested restricted stock

 
—

 

 
—

 

 
—

 

Basic earnings (loss) and shares
42,789

 
$
(2,014
)
 
$
(0.05
)
 
$
(180
)
 
$
—

 
$
(2,194
)
 
$
(0.05
)
Effect of dilutive securities:

 

 

 

 

 

 

Stock compensation plans
—

 

 

 

 

 

 

Diluted earnings (loss) and shares
42,789

 
$
(2,014
)
 
$
(0.05
)
 
$
(180
)
 
$
—

 
$
(2,194
)
 
$
(0.05
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Impairment charges
 
 
$
3,643

 
 
 
$
—

 
 
 
$
3,643

 
 
Legal and other
 
 
1,500

 
 
 
—

 
 
 
1,500

 
 
Compensation-related charges
 
 
9,189

 
 
 
—

 
 
 
9,189

 
 
Lease exit adjustments
 
 
4,814

 
 
 
—

 
 
 
4,814

 
 
Gain on disposal
 
 
(1,190
)
 
 
 
—

 
 
 
(1,190
)
 
 
Total adjustments before taxes
 
 
17,956

 
 
 
—

 
 
 
17,956

 
 
Income tax effect of adjustments
 
 
(4,894
)
 
 
 
 
 
 
 
$
(4,894
)
 
 
Effect of adjustments, net of income taxes
 
 
$
13,062

 
$
0.31

 
$
—

 
$
(0.01
)
 
$
13,062

 
$
0.30

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted:
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings (loss) and diluted earnings (loss) per share (1)
 
 
$
11,048

 
$
0.26

 
$
(180
)
 
$
(0.01
)
 
$
10,868

 
$
0.25

(1)
Net loss attributable to Pre-Owned Stores operations was $0.10 per fully diluted share in the three months ended March 31, 2018.
 
Three Months Ended March 31, 2017
 
 
 
Income (Loss)
 
Income (Loss)
 
 
 
 
 
 
 
From Continuing
Operations
 
From Discontinued
Operations
 
Net
Income (Loss)
 
Weighted
Average
Shares
 
Amount
 
Per
Share
Amount
 
Amount
 
Per
Share
Amount
 
Amount
 
Per
Share
Amount
 
(In thousands, except per share amounts)
Reported:
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings (loss) and shares
44,791

 
$
(20
)
 

 
$
(521
)
 

 
$
(541
)
 

Effect of participating securities:

 

 

 

 

 

 

Non-vested restricted stock

 
—

 

 
—

 

 
—

 

Basic earnings (loss) and shares
44,791

 
$
(20
)
 
$
—

 
$
(521
)
 
$
(0.01
)
 
$
(541
)
 
$
(0.01
)
Effect of dilutive securities:

 

 

 

 

 

 

Stock compensation plans
—

 

 

 

 

 

 

Diluted earnings (loss) and shares (2)
44,791

 
$
(20
)
 
$
—

 
$
(521
)
 
$
(0.01
)
 
$
(541
)
 
$
(0.01
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Impairment charges
 
 
$
510

 
 
 
$
—

 
 
 
$
510

 
 
Legal and other
 
 
(1,149
)
 
 
 
—

 
 
 
(1,149
)
 
 
Storm damage
 
 
2,382

 
 
 
—

 
 
 
2,382

 
 
Loss on debt extinguishment
 
 
15,268

 
 
 
—

 
 
 
15,268

 
 
Total adjustments before taxes
 
 
17,011

 
 
 
—

 
 
 
17,011

 
 
Income tax effect of adjustments
 
 
(6,677
)
 
 
 
—

 
 
 
$
(6,677
)
 
 
Effect of adjustments, net of income taxes
 
 
$
10,334

 
$
0.23

 
$
—

 
$
—

 
$
10,334

 
$
0.23

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted:
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings (loss) and diluted earnings (loss) per share (2)
 
 
$
10,314

 
$
0.23

 
$
(521
)
 
$
(0.01
)
 
$
9,793

 
$
0.22

(2)
Net loss attributable to Pre-Owned Stores operations was $0.07 per fully diluted share in the three months ended March 31, 2017.



Sonic Automotive, Inc.
Results of Operations (Unaudited)
 
New Vehicles
 
Three Months Ended March 31,
 
Better / (Worse)
 
2018
 
2017
 
Change
 
% Change
 
(In thousands, except unit and per unit data)
Reported new vehicle:
 
 
 
 
 
 
 
Revenue
$
1,180,846

 
$
1,171,932

 
$
8,914

 
0.8
 %
Gross profit
$
56,800

 
$
58,278

 
$
(1,478
)
 
(2.5
)%
Unit sales
29,500

 
30,495

 
(995
)
 
(3.3
)%
Revenue per unit
$
40,029

 
$
38,430

 
$
1,599

 
4.2
 %
Gross profit per unit
$
1,925

 
$
1,911

 
$
14

 
0.7
 %
Gross profit as a % of revenue
4.8
%
 
5.0
%
 
(20
)
 
bps
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
Better / (Worse)
 
2018
 
2017
 
Change
 
% Change
 
(In thousands, except unit and per unit data)
Same store new vehicle:
 
 
 
 
 
 
 
Revenue
$
1,176,510

 
$
1,151,850

 
$
24,660

 
2.1
 %
Gross profit
$
56,757

 
$
57,717

 
$
(960
)
 
(1.7
)%
Unit sales
29,416

 
29,865

 
(449
)
 
(1.5
)%
Revenue per unit
$
39,996

 
$
38,569

 
$
1,427

 
3.7
 %
Gross profit per unit
$
1,929

 
$
1,933

 
$
(4
)
 
(0.2
)%
Gross profit as a % of revenue
4.8
%
 
5.0
%
 
(20
)
 
bps
 
 
 
 
 
 
 
 








Sonic Automotive, Inc.
Results of Operations (Unaudited)
 
Used Vehicles
 
Three Months Ended March 31,
 
Better / (Worse)
 
2018
 
2017
 
Change
 
% Change
 
(In thousands, except unit and per unit data)
Reported used vehicle:
 
 
 
 
 
 
 
Revenue
$
709,046

 
$
634,474

 
$
74,572

 
11.8
 %
Gross profit
$
36,771

 
$
40,833

 
$
(4,062
)
 
(9.9
)%
Unit sales
33,739

 
30,372

 
3,367

 
11.1
 %
Revenue per unit
$
21,016

 
$
20,890

 
$
126

 
0.6
 %
Gross profit per unit
$
1,090

 
$
1,344

 
$
(254
)
 
(18.9
)%
Gross profit as a % of revenue
5.2
%
 
6.4
%
 
(120
)
 
bps
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
Better / (Worse)
 
2018
 
2017
 
Change
 
% Change
 
(In thousands, except unit and per unit data)
Same store used vehicle:
 
 
 
 
 
 
 
Revenue
$
629,510

 
$
613,348

 
$
16,162

 
2.6
 %
Gross profit
$
34,306

 
$
37,970

 
$
(3,664
)
 
(9.6
)%
Unit sales
29,690

 
29,162

 
528

 
1.8
 %
Revenue per unit
$
21,203

 
$
21,032

 
$
171

 
0.8
 %
Gross profit per unit
$
1,155

 
$
1,302

 
$
(147
)
 
(11.3
)%
Gross profit as a % of revenue
5.4
%
 
6.2
%
 
(80
)
 
bps
 
 
 
 
 
 
 
 





Sonic Automotive, Inc.
Results of Operations (Unaudited)
 
Wholesale Vehicles
 
Three Months Ended March 31,
 
Better / (Worse)
 
2018
 
2017
 
Change
 
% Change
 
(In thousands, except unit and per unit data)
Reported used vehicle:
 
 
 
 
 
 
 
Revenue
$
65,398

 
$
46,310

 
$
19,088

 
41.2
 %
Gross profit
$
(4,425
)
 
$
(1,172
)
 
$
(3,253
)
 
(277.6
)%
Unit sales
9,680

 
8,307

 
1,373

 
16.5
 %
Revenue per unit
$
6,756

 
$
5,575

 
$
1,181

 
21.2
 %
Gross profit per unit
$
(457
)
 
$
(141
)
 
$
(316
)
 
(224.1
)%
Gross profit as a % of revenue
(6.8
)%
 
(2.5
)%
 
(430
)
 
bps
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
Better / (Worse)
 
2018
 
2017
 
Change
 
% Change
 
(In thousands, except unit and per unit data)
Same store used vehicle:
 
 
 
 
 
 
 
Revenue
$
62,719

 
$
45,154

 
$
17,565

 
38.9
 %
Gross profit
$
(4,669
)
 
$
(1,080
)
 
$
(3,589
)
 
(332.3
)%
Unit sales
9,215

 
7,991

 
1,224

 
15.3
 %
Revenue per unit
$
6,806

 
$
5,651

 
$
1,155

 
20.4
 %
Gross profit per unit
$
(507
)
 
$
(135
)
 
$
(372
)
 
(275.6
)%
Gross profit as a % of revenue
(7.4
)%
 
(2.4
)%
 
(500
)
 
bps
 
 
 
 
 
 
 
 





Sonic Automotive, Inc.
Results of Operations (Unaudited)
 
Parts, Service and Collision Repair (“Fixed Operations”)
 
Three Months Ended March 31,
 
Better / (Worse)
 
2018
 
2017
 
Change
 
% Change
 
(In thousands, except unit and per unit data)
Reported:
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
Customer pay
$
142,354

 
$
138,582

 
$
3,772

 
2.7
 %
Warranty
67,601

 
69,471

 
(1,870
)
 
(2.7
)%
Wholesale parts
42,501

 
43,281

 
(780
)
 
(1.8
)%
Internal, sublet and other
99,302

 
100,709

 
(1,407
)
 
(1.4
)%
Total
$
351,758

 
$
352,043

 
$
(285
)
 
(0.1
)%
 
 
 
 
 
 
 


Gross profit
 
 
 
 
 
 


Customer pay
$
76,350

 
$
73,764

 
$
2,586

 
3.5
 %
Warranty
37,901

 
38,347

 
(446
)
 
(1.2
)%
Wholesale parts
7,265

 
7,550

 
(285
)
 
(3.8
)%
Internal, sublet and other
48,112

 
49,683

 
(1,571
)
 
(3.2
)%
Total
$
169,628

 
$
169,344

 
$
284

 
0.2
 %
 
 
 
 
 
 
 
 
Gross profit as a % of revenue
 
 
 
 
 
 
 
Customer pay
53.6
%
 
53.2
%
 
40
 bps
 
 
Warranty
56.1
%
 
55.2
%
 
90
 bps
 
 
Wholesale parts
17.1
%
 
17.4
%
 
(30
) bps
 
 
Internal, sublet and other
48.5
%
 
49.3
%
 
(80
) bps
 
 
Total
48.2
%
 
48.1
%
 
10
 bps
 
 
 
 
 
 
 
 
 
 




Sonic Automotive, Inc.
Results of Operations (Unaudited)
 
Parts, Service and Collision Repair (“Fixed Operations”)
 
Three Months Ended March 31,
 
Better / (Worse)
 
2018
 
2017
 
Change
 
% Change
 
(In thousands, except unit and per unit data)
Same Store:
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
Customer pay
$
140,928

 
$
136,081

 
$
4,847

 
3.6
 %
Warranty
67,982

 
67,856

 
126

 
0.2
 %
Wholesale parts
42,437

 
42,703

 
(266
)
 
(0.6
)%
Internal, sublet and other
96,597

 
98,435

 
(1,838
)
 
(1.9
)%
Total
$
347,944

 
$
345,075

 
$
2,869

 
0.8
 %
 
 
 
 
 
 
 


Gross profit
 
 
 
 
 
 


Customer pay
$
75,680

 
$
72,387

 
$
3,293

 
4.5
 %
Warranty
38,072

 
37,424

 
648

 
1.7
 %
Wholesale parts
7,249

 
7,435

 
(186
)
 
(2.5
)%
Internal, sublet and other
47,058

 
48,022

 
(964
)
 
(2.0
)%
Total
$
168,059

 
$
165,268

 
$
2,791

 
1.7
 %
 
 
 
 
 
 
 
 
Gross profit as a % of revenue
 
 
 
 
 
 
 
Customer pay
53.7
%
 
53.2
%
 
50
 bps
 
 
Warranty
56.0
%
 
55.2
%
 
80
 bps
 
 
Wholesale parts
17.1
%
 
17.4
%
 
(30
) bps
 
 
Internal, sublet and other
48.7
%
 
48.8
%
 
(10
) bps
 
 
Total
48.3
%
 
47.9
%
 
40
 bps
 
 
 
 
 
 
 
 
 
 





Sonic Automotive, Inc.
Results of Operations (Unaudited)
 
Finance, Insurance and Other, Net (“F&I”)    
 
Three Months Ended March 31,
 
Better / (Worse)
 
2018
 
2017
 
Change
 
% Change
 
(In thousands, except per unit data)
Reported:
 
 
 
 
 
 
 
Revenue
$
93,725

 
$
83,063

 
$
10,662

 
12.8
%
Gross profit per retail unit (excludes fleet)
$
1,490

 
$
1,379

 
$
111

 
8.0
%
 
 
 
 
 
 
 

 
Three Months Ended March 31,
 
Better / (Worse)
 
2018
 
2017
 
Change
 

 
(In thousands, except per unit data)
Same Store:
 
 
 
 
 
 

Revenue
$
84,074

 
$
80,139

 
$
3,935

 
4.9
%
Gross profit per retail unit (excludes fleet)
$
1,430

 
$
1,372

 
$
58

 
4.2
%
 
 
 
 
 
 
 




Sonic Automotive, Inc.
Results of Operations (Unaudited)
 
Selling, General and Administrative (“SG&A”) Expenses
 
Three Months Ended March 31,
 
Better / (Worse)
 
2018
 
2017
 
Change
 
% Change
 
(In thousands)
Reported:
 
 
 
 
 
 
 
Compensation
$
185,037

 
$
176,547

 
$
(8,490
)
 
(4.8
)%
Advertising
16,016

 
15,257

 
(759
)
 
(5.0
)%
Rent
21,868

 
18,487

 
(3,381
)
 
(18.3
)%
Other
82,004

 
81,943

 
(61
)
 
(0.1
)%
Total SG&A expenses
$
304,925

 
$
292,234

 
$
(12,691
)
 
(4.3
)%
Adjustments:
 
 
 
 
 
 
 
Legal and other
$
(1,500
)
 
$
1,149

 
 
 
 
Compensation-related charges
(9,189
)
 
—

 
 
 
 
Lease exit adjustments
(4,814
)
 
—

 
 
 
 
Storm damage
—

 
(2,382
)
 
 
 
 
Gain on disposal
1,190

 
—

 
 
 
 
Total SG&A adjustments
$
(14,313
)
 
$
(1,233
)
 
 
 
 
Adjusted:
 
 
 
 
 
 
 
Total adjusted SG&A expenses
$
290,612

 
$
291,001

 
$
389

 
0.1
 %
Reported:
 
 
 
 
 
 
 
SG&A expenses as a % of gross profit:
 
 
 
 
 
 
 
Compensation
52.5
 %
 
50.4
 %
 
(210
) bps
 
 
Advertising
4.5
 %
 
4.4
 %
 
(10
) bps
 
 
Rent
6.2
 %
 
5.3
 %
 
(90
) bps
 
 
Other
23.3
 %
 
23.3
 %
 
—

 
 
Total SG&A expenses as a % of gross profit
86.5
 %
 
83.4
 %
 
(310
) bps
 
 
Adjustments:
 
 
 
 
 
 
 
Legal and other
(0.4
)%
 
0.3
 %
 
 
 
 
Compensation-related charges
(2.6
)%
 
—
 %
 
 
 
 
Lease exit adjustments
(1.4
)%
 
—
 %
 
 
 
 
Storm damage
—
 %
 
(0.6
)%
 
 
 
 
Gain on disposal
0.3
 %
 
—
 %
 
 
 
 
Total effect of adjustments
(4.1
)%
 
(0.3
)%
 
 
 
 
Adjusted:
 
 
 
 
 
 
 
Total adjusted SG&A expenses as a % of gross profit
82.4
 %
 
83.1
 %
 
70
 bps
 
 



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