Sonic Automotive, Inc. Current report filing

Current report filing

Subsequent Events

Subsequent Events

12 Months Ended

Dec. 31, 2011

13. Subsequent Events

Subsequent to December 31, 2011, Sonic completed the disposal of three dealerships, which generated net cash from disposition of approximately $13.0 million on the disposal of approximately $7.2 million of net assets. The results of operations of these dealerships were included in continuing operations in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2011. The Consolidated Statements of Income and other disclosures in this Current Report on Form 8-K are presented in accordance with “Presentation of Financial Statements,” in the ASC and reflect the reclassification of results of operations of these three dealerships and certain corporate allocations related to these dealerships from continuing operations to discontinued operations. The disposal of these three dealerships reduced earnings per share from continuing operations by $0.01 in the year ended December 31, 2011 and had no effect on earnings per share from continuing operations for the years ended December 31, 2010 and 2009. Amounts reclassified from continuing operations to discontinued operations are as follows:


	Year Ended December 31,
	2011			2010			2009
Revenues:
New vehicles	$	39,524		$	32,392		$	30,200
Used vehicles		30,228			24,263			24,723
Wholesale vehicles		2,052			2,460			3,804

Total vehicles		71,804			59,115			58,727
Parts, service and collision repair		17,747			20,154			21,791
Finance, insurance and other		1,673			1,302			1,214

Total revenues		91,224			80,571			81,732
Cost of Sales:
New vehicles		(37,044	)		(30,008	)		(27,872	)
Used vehicles		(27,953	)		(22,456	)		(22,986	)
Wholesale vehicles		(2,177	)		(2,538	)		(3,908	)

Total vehicles		(67,174	)		(55,002	)		(54,766	)
Parts, service and collision repair		(8,807	)		(10,164	)		(10,629	)

Total cost of sales		(75,981	)		(65,166	)		(65,395	)
Gross profit		15,243			15,405			16,337
Selling, general and administrative expenses		(13,439	)		(13,870	)		(14,288	)
Impairment charges		—			—			(453	)
Depreciation and amortization		(297	)		(469	)		(555	)

Operating income (loss)		1,507			1,066			1,041
Other income (expense):
Interest expense, floor plan		(279	)		(292	)		(287	)
Interest expense, other, net		(301	)		(396	)		(518	)
Other income (expense), net		1			1			1

Total other income (expense)		(579	)		(687	)		(804	)

Income (loss) before taxes		928			379			237
Provision for income taxes - benefit (expense)		(299	)		(186	)		(89	)

Income (loss)	$	629		$	193		$	148