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

3 Months Ended

Mar. 31, 2013

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 and the 5.0% Convertible Senior Notes due 2029 (the “5.0% Convertible Notes”), which were extinguished in 2012. Sonic’s non-vested restricted stock and certain of its non-vested 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 first quarters ended March 31, 2013 and 2012:


	First Quarter Ended March 31, 2013
			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		52,586	$	21,697				$	(406	)				$	21,291
Effect of participating securities:
Non-vested restricted stock and stock units				(170	)				—						(170	)

Basic earnings (loss) and shares		52,586	$	21,527		$	0.41	$	(406	)	$	(0.01	)	$	21,121		$	0.40
Effect of dilutive securities:
Stock compensation plans		345

Diluted earnings (loss) and shares		52,931	$	21,527		$	0.41	$	(406	)	$	(0.01	)	$	21,121		$	0.40


	First Quarter Ended March 31, 2012
			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		52,224	$	21,145				$	(647	)				$	20,498
Effect of participating securities:
Non-vested restricted stock and stock units				(329	)				—						(329	)

Basic earnings (loss) and shares		52,224	$	20,816		$	0.40	$	(647	)	$	(0.01	)	$	20,169		$	0.39
Effect of dilutive securities:
Contingently convertible debt (5.0% Convertible Notes)		11,676		2,125					47						2,172
Stock compensation plans		520

Diluted earnings (loss) and shares		64,420	$	22,941		$	0.36	$	(600	)	$	(0.01	)	$	22,341		$	0.35

In addition to the stock options included in the table above, options to purchase approximately 0.9 million shares and 1.6 million shares of Class A common stock were outstanding at March 31, 2013 and March 31, 2012, 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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