Sonic Automotive, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Per Share Data and Stockholders' Equity

Per Share Data and Stockholders' Equity

9 Months Ended

Sep. 30, 2015

7. Per Share Data and Stockholders’ Equity

The calculation of diluted earnings per share considers the potential dilutive effect of options and shares under Sonic’s stock compensation plans. Certain of Sonic’s non-vested restricted stock and restricted stock units contain rights to receive non-forfeitable dividends and thus, are considered participating securities and are included in the two-class method of computing earnings per share. The following table illustrates the dilutive effect of such items on earnings per share for the three and nine months ended September 30, 2015 and 2014:

	Three Months Ended September 30, 2015
			Income (Loss)					Income (Loss)
			From Continuing					From Discontinued						Net
			Operations					Operations						Income (Loss)
	Weighted					Per					Per						Per
	Average					Share					Share						Share
	Shares		Amount			Amount		Amount			Amount			Amount			Amount
	(In thousands, except per share amounts)

Earnings (loss) and shares		50,456	$	27,103				$	(598	)				$	26,505
Effect of participating securities:
Non-vested restricted stock and restricted stock units				(13	)				-						(13	)
Basic earnings (loss) and shares		50,456	$	27,090		$	0.54	$	(598	)	$	(0.01	)	$	26,492		$	0.53
Effect of dilutive securities:
Stock compensation plans		313
Diluted earnings (loss) and shares		50,769	$	27,090		$	0.53	$	(598	)	$	(0.01	)	$	26,492		$	0.52

	Three Months Ended September 30, 2014
			Income (Loss)					Income (Loss)
			From Continuing					From Discontinued				Net
			Operations					Operations				Income (Loss)
	Weighted					Per				Per					Per
	Average					Share				Share					Share
	Shares		Amount			Amount		Amount		Amount		Amount			Amount
	(In thousands, except per share amounts)

Earnings (loss) and shares		52,070	$	24,557				$	155			$	24,712
Effect of participating securities:
Non-vested restricted stock and restricted stock units				(79	)				-				(79	)
Basic earnings (loss) and shares		52,070	$	24,478		$	0.47	$	155	$	-	$	24,633		$	0.47
Effect of dilutive securities:
Stock compensation plans		483
Diluted earnings (loss) and shares		52,553	$	24,478		$	0.47	$	155	$	-	$	24,633		$	0.47

	Nine Months Ended September 30, 2015
			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)

Earnings (loss) and shares		50,697	$	56,584				$	(1,331	)				$	55,253
Effect of participating securities:
Non-vested restricted stock and restricted stock units				(27	)				-						(27	)
Basic earnings (loss) and shares		50,697	$	56,557		$	1.12	$	(1,331	)	$	(0.03	)	$	55,226		$	1.09
Effect of dilutive securities:
Stock compensation plans		389
Diluted earnings (loss) and shares		51,086	$	56,557		$	1.11	$	(1,331	)	$	(0.03	)	$	55,226		$	1.08

	Nine Months Ended September 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)

Earnings (loss) and shares		52,333	$	71,602				$	(511	)				$	71,091
Effect of participating securities:
Non-vested restricted stock and restricted stock units				(229	)				-						(229	)
Basic earnings (loss) and shares		52,333	$	71,373		$	1.36	$	(511	)	$	(0.01	)	$	70,862		$	1.35
Effect of dilutive securities:
Stock compensation plans		475
Diluted earnings (loss) and shares		52,808	$	71,373		$	1.35	$	(511	)	$	(0.01	)	$	70,862		$	1.34

In addition to the stock options included in the table above, options to purchase approximately 0.5 million shares and 0.4 million shares of Class A common stock were outstanding at September 30, 2015 and 2014, respectively, but were not included in the computation of diluted earnings per share because the options were not dilutive.