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

Quarterly report pursuant to Section 13 or 15(d)

Business Acquisitions and Dispositions

Business Acquisitions and Dispositions

9 Months Ended

Sep. 30, 2017

2. Business Acquisitions and Dispositions

Acquisitions – During the three months ended September 30, 2017, Sonic acquired a stand-alone pre-owned vehicle business for approximately $76.6 million. During the nine months ended September 30, 2016, Sonic acquired three stand-alone pre-owned vehicle businesses and related real estate for approximately $15.9 million.

Dispositions – Sonic disposed of one mid-line import franchise during the three months ended September 30, 2017 that generated net cash of approximately $22.6 million. Sonic did not dispose of any franchises during the nine months ended September 30, 2016.

Revenues and other activities associated with disposed dealerships classified as discontinued operations were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
	(In thousands)
Income (loss) from operations	$	(119	)	$	(212	)	$	(561	)	$	(539	)
Lease exit accrual adjustments and charges		(362	)		(1,201	)		(1,089	)		(974	)
Pre-tax income (loss)	$	(481	)	$	(1,413	)	$	(1,650	)	$	(1,513	)
Total revenues	$	-		$	-		$	-		$	-

Revenues and other activities associated with disposed dealerships that remain in continuing operations were as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017		2016
	(In thousands)
Income (loss) from operations	$	(70	)	$	160	$	203	$	124
Gain (loss) on disposal		8,490			29		8,466		(30	)
Pre-tax income (loss)	$	8,420		$	189	$	8,669	$	94
Total revenues	$	7,082		$	17,679	$	36,447	$	49,778