Sonic Automotive, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Business Acquisitions and Dispositions

Business Acquisitions and Dispositions

9 Months Ended

Sep. 30, 2019

Business DispositionsWe disposed of one luxury franchised dealership and four mid-line import franchised dealerships during the nine months ended September 30, 2019 that generated net cash of approximately $130.1 million. We disposed of two luxury franchised dealerships and four mid-line import franchised dealerships during the nine months ended September 30, 2018 that generated net cash of approximately $121.9 million. Additionally, we terminated one luxury franchised dealership and ceased operations at a previously acquired pre-owned store in Florida during the nine months ended September 30, 2018. The results of operations of each of these disposed or terminated dealerships remain in continuing operations in the accompanying unaudited condensed consolidated statements of income.

Revenues and other activities associated with disposed franchised dealerships that remain in continuing operations were as follows:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2019		2018		2019		2018
	(In thousands)
Income (loss) from operations	$	(200)	$	(301)	$	(2,701)	$	(6,146)
Gain (loss) on disposal	(823)		(88)		45,570		39,149
Lease exit accrual adjustments and charges	—		(16)		169		(784)
Pre-tax income (loss)	$	(1,023)	$	(405)	$	43,038	$	32,219
Total revenues	$	2,455	$	100,242	$	54,682	$	386,160

Revenues and other activities associated with disposed franchised dealerships classified as discontinued operations were as follows:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2019		2018		2019		2018
	(In thousands)
Income (loss) from operations	$	(223)	$	(148)	$	(616)	$	(478)
Lease exit accrual adjustments and charges	—		(104)		—		(319)
Pre-tax income (loss)	$	(223)	$	(252)	$	(616)	$	(797)
Total revenues	$	—	$	—	$	—	$	—