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, 2012

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 options and shares under Sonic’s stock compensation plans, Class A common stock purchase warrants and the 5.0% Convertible Notes. 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 third quarter and nine-month periods ended September 30, 2012 and 2011:


	Third Quarter Ended September 30, 2012
			Income (Loss) From Continuing Operations					Income (Loss) From Discontinued Operations
			Income (Loss) From Continuing Operations					Income (Loss) 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)
Earnings (loss) and shares		55,069	$	11,840				$	(1,798	)				$	10,042
Effect of participating securities:
Non-vested restricted stock and stock units				(175	)				—						(175	)

Basic earnings (loss) and shares		55,069	$	11,665		$	0.21	$	(1,798	)	$	(0.03	)	$	9,867		$	0.18
Effect of dilutive securities:
Contingently convertible debt (5.0% Convertible Notes)		3,534		618					2						620
Stock compensation plans		408

Diluted earnings (loss) and shares		59,011	$	12,283		$	0.21	$	(1,796	)	$	(0.03	)	$	10,487		$	0.18


	Third Quarter Ended September 30, 2011
			Income (Loss) From Continuing Operations					Income (Loss) From Discontinued Operations
			Income (Loss) From Continuing Operations					Income (Loss) 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)
Earnings (loss) and shares		52,366	$	20,111				$	(710	)				$	19,401
Effect of participating securities:
Non-vested restricted stock and stock units				(263	)				—						(263	)

Basic earnings (loss) and shares		52,366	$	19,848		$	0.38	$	(710	)	$	(0.01	)	$	19,138		$	0.37
Effect of dilutive securities:
Contingently convertible debt (5.0% Convertible Notes)		12,590		2,329					37						2,366
Stock compensation plans		561

Diluted earnings (loss) and shares		65,517	$	22,177		$	0.34	$	(673	)	$	(0.01	)	$	21,504		$	0.33


	Nine Months Ended September 30, 2012
			Income (Loss) From Continuing Operations					Income (Loss) From Discontinued Operations
			Income (Loss) From Continuing Operations					Income (Loss) 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)
Earnings (loss) and shares		53,302	$	61,538				$	(2,819	)				$	58,719
Effect of participating securities:
Non-vested restricted stock and stock units				(934	)				—						(934	)

Basic earnings (loss) and shares		53,302	$	60,604		$	1.14	$	(2,819	)	$	(0.06	)	$	57,785		$	1.08
Effect of dilutive securities:
Contingently convertible debt (5.0% Convertible Notes)		8,563		4,638					43						4,681
Stock compensation plans		435

Diluted earnings (loss) and shares		62,300	$	65,242		$	1.05	$	(2,776	)	$	(0.05	)	$	62,466		$	1.00


	Nine Months Ended September 30, 2011
			Income (Loss) From Continuing Operations					Income (Loss) From Discontinued Operations
			Income (Loss) From Continuing Operations					Income (Loss) 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)
Earnings (loss) and shares		52,414	$	59,083				$	(3,367	)				$	55,716
Effect of participating securities:
Non-vested restricted stock and stock units				(773	)				—						(773	)

Basic earnings (loss) and shares		52,414	$	58,310		$	1.11	$	(3,367	)	$	(0.06	)	$	54,943		$	1.05
Effect of dilutive securities:
Contingently convertible debt (5.0% Convertible Notes)		12,789		6,851					119						6,970
Stock compensation plans		597

Diluted earnings (loss) and shares		65,800	$	65,161		$	0.99	$	(3,248	)	$	(0.05	)	$	61,913		$	0.94

In addition to the stock options included in the table above, options to purchase approximately 1.3 million shares and 2.1 million shares of Class A common stock were outstanding at September 30, 2012 and September 30, 2011, respectively, but were not included in the computation of diluted earnings per share because the options were not dilutive.

- Definition

The entire disclosure for earnings per share.

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