Exhibit 12.1

SONIC AUTOMOTIVE, INC. AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES

 

 

 

 

 

Year Ended December 31,

 

 

 

2017

 

 

2016

 

 

2015

 

 

2014

 

 

2013

 

 

 

(In thousands)

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, including floor plan interest (1)

 

$

89,466

 

 

$

78,694

 

 

$

73,539

 

 

$

73,805

 

 

$

79,842

 

Capitalized interest

 

 

2,172

 

 

 

2,750

 

 

 

1,912

 

 

 

1,921

 

 

 

2,484

 

Rent expense (interest factor)

 

 

24,341

 

 

 

24,634

 

 

 

24,514

 

 

 

24,569

 

 

 

24,659

 

Total fixed charges

 

 

115,979

 

 

 

106,078

 

 

 

99,965

 

 

 

100,295

 

 

 

106,985

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes and cumulative effect of change in accounting principle

 

 

108,124

 

 

 

155,212

 

 

 

145,156

 

 

 

161,727

 

 

 

129,021

 

Add: Fixed charges

 

 

115,979

 

 

 

106,078

 

 

 

99,965

 

 

 

100,295

 

 

 

106,985

 

Less: Capitalized interest

 

 

(2,172

)

 

 

(2,750

)

 

 

(1,912

)

 

 

(1,921

)

 

 

(2,484

)

Income from continuing operations before income taxes and cumulative effect of change in accounting principle & fixed charges

 

$

221,931

 

 

$

258,540

 

 

$

243,209

 

 

$

260,101

 

 

$

233,522

 

Ratio of earnings to fixed charges

 

1.9 x

 

 

2.4 x

 

 

2.4 x

 

 

2.6 x

 

 

2.2 x

 

 

(1) Includes interest expense associated with discontinued operations.