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

6 Months Ended

Jun. 30, 2011

Per Share Data and Stockholders' Equity [Abstract]

7. Per Share Data and Stockholders’ Equity

The calculation of diluted earnings per share considers the potential dilutive effect of Sonic's contingently convertible debt issuances and stock options to purchase shares of Class A common stock under several equity compensation plans. The following table illustrates the dilutive effect of such items on earnings per share for the second quarter and six-month periods ended June 30, 2011 and 2010:


	For the Second Quarter Ended June 30, 2011
			Income From Continuing Operations				Loss From Discontinued Operations				Net Income

	Weighted Average Shares		Amount		Per Share Amount		Amount		Per Share Amount		Amount		Per Share Amount
	(In thousands, except per share amounts)
Earnings (Loss) and Shares		52,461	$	22,151			$	(800)			$	21,351
Effect of Participating Securities:
Non-vested Restricted Stock and Stock Units		—		(291)				—				(291)

Basic Earnings (Loss) and Shares		52,461	$	21,860	$	0.42	$	(800)	$	(0.02)	$	21,060	$	0.40
Effect of Dilutive Securities:
Contingently Convertible Debt ( 5.0% Convertible Notes)		12,890		2,294				—				2,294
Stock Compensation Plans		585

Diluted Earnings (Loss) and Shares		65,936	$	24,154	$	0.37	$	(800)	$	(0.02)	$	23,354	$	0.35


	For the Second Quarter Ended June 30, 2010
			Income From Continuing Operations				Loss From Discontinued Operations				Net Income

	Weighted Average Shares		Amount		Per Share Amount		Amount		Per Share Amount		Amount		Per Share Amount
	(In thousands, except per share amounts)
Earnings (Loss) and Shares		52,249	$	9,592			$	(1,156)			$	8,436
Effect of Participating Securities:
Non-vested Restricted Stock and Stock Units		—		(94)				—				(94)

Basic Earnings (Loss) and Shares		52,249	$	9,498	$	0.18	$	(1,156)	$	(0.02)	$	8,342	$	0.16
Effect of Dilutive Securities:
Contingently Convertible Debt ( 5.0% Convertible Notes)		12,890		2,128				—				2,128
Stock Compensation Plans		668

Diluted Earnings (Loss) and Shares		65,807	$	11,626	$	0.18	$	(1,156)	$	(0.02)	$	10,470	$	0.16

		0000000000		0000000000		0000000000		0000000000		0000000000		0000000000		0000000000
	For the Six Months Ended June 30, 2011
			Income From Continuing Operations				Loss From Discontinued Operations				Net Income
	Weighted Average Shares		Amount		Per Share Amount		Amount		Per Share Amount		Amount		Per Share Amount
			(In thousands, except per shareamounts)
Earnings (Loss) and Shares		52,438	$	37,942			$	(1,627)			$	36,315
Effect of Participating Securities:
Non-vested Restricted Stock and Stock Units		—		(498)				—				(498)

Basic Earnings (Loss) and Shares		52,438	$	37,444	$	0.71	$	(1,627)	$	(0.03)	$	35,817	$	0.68
Effect of Dilutive Securities:
Contingently Convertible Debt ( 5.0% Convertible Notes)		12,890		4,604				—				4,604
Stock Compensation Plans		615

Diluted Earnings (Loss) and Shares		65,943	$	42,048	$	0.64	$	(1,627)	$	(0.03)	$	40,421	$	0.61

		0000000000		0000000000		0000000000		0000000000		0000000000		0000000000		0000000000
	For the Six Months Ended June 30, 2010
			Income From Continuing Operations				Loss From Discontinued Operations				Net Income
	Weighted Average Shares		Amount		Per Share Amount		Amount		Per Share Amount		Amount		Per Share Amount
			(In thousands, except per share amounts)
Earnings (Loss) and Shares		52,070	$	16,158			$	(3,568)			$	12,590
Effect of Participating Securities:
Non-vested Restricted Stock and Stock Units		—		(160)				—				(160)

Basic Earnings (Loss) and Shares		52,070	$	15,998	$	0.31	$	(3,568)	$	(0.07)	$	12,430	$	0.24
Effect of Dilutive Securities:
Stock Compensation Plans		679

Diluted Earnings (Loss) and Shares		52,749	$	15,998	$	0.30	$	(3,568)	$	(0.06)	$	12,430	$	0.24

In addition to the stock options included in the table above, options to purchase approximately 2.2 million shares and 2.3 million shares of Class A common stock were outstanding at June 30, 2011 and June 30, 2010, respectively, but were not included in the computation of diluted earnings per share because the options were not dilutive. In addition, in the event the effect of potentially dilutive shares associated with any of Sonic's convertible notes were anti-dilutive, the effect of those shares have also been excluded from the computation of diluted earnings per share.

- Definition

The entire disclosure for earnings per share.

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