Quarterly report pursuant to Section 13 or 15(d)

Document and Entity Information

v3.22.2.2
Document and Entity Information - shares
 6 Months Ended
Jun. 30, 2022
Apr. 27, 2022
Document Information [Line Items]    
Entity Registrant Name SONIC AUTOMOTIVE, INC.  
Entity Central Index Key 0001043509  
Entity Filer Category Large Accelerated Filer  
Document Type 10-Q/A  
Current Fiscal Year End Date --12-31  
Document Period End Date Jun. 30, 2022  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q2  
Trading Symbol SAH  
Amendment Flag true  
Entity Emerging Growth Company false  
Entity Small Business false  
City Area Code (704)  
Entity Address, Address Line One 4401 Colwick Road  
Entity Address, Postal Zip Code 28211  
Entity Tax Identification Number 56-2010790  
Local Phone Number 566-2400  
Entity File Number 1-13395  
Entity Shell Company false  
Entity Current Reporting Status Yes  
Entity Address, City or Town Charlotte,  
Entity Address, State or Province NC  
Document Quarterly Report true  
Error Correction [Text Block]
EXPLANATORY NOTE
Unless the context requires otherwise, references to “we,” “us,” “our,” and “Sonic,” refer to Sonic Automotive, Inc. and its subsidiaries.
We have prepared this Amendment No. 1 (this “Amendment”) to our Quarterly Report on Form 10-Q for the quarter and six month periods ended June 30, 2022, which was originally filed with the Securities and Exchange Commission on July 28, 2022 (the “Original 10-Q”) to reflect the restatement of our previously issued Condensed Consolidated Statements of Operations for the quarter ended June 30, 2022.
As required by Rule 12b-15 under the Securities Exchange Act of 1934, as amended, new certifications by the Sonic’s principal executive officer and principal financial officer are filed as exhibits 31.1, 31.2, 32.1 and 32.2 to this Form 10-Q/A.
Internal Control over Financial Reporting
In connection with this restatement, Sonic has re-evaluated the effectiveness of our disclosure controls and procedures for the three months ended June 30, 2022. Management has concluded that, in light of the error described below, a material weakness exists in certain internal controls over financial reporting related to the revenue recognition process at a single dealership acquired in December 2021. Based upon such re-evaluation, and due to such material weakness, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of June 30, 2022.
Background of the Restatement
On October 28, 2022, we filed a Current Report on Form 8-K under Item 4.02 with the Securities and Exchange Commission relating to previously issued financial statements as described below. As indicated in the Current Report on Form 8-K under Item 4.02, we determined that a restatement was necessary due to the effect of an error in its Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2022. The impact on the 2021 consolidated financial statements was immaterial.
During the quarter ended September 30, 2022, we identified an error related to the revenue recognition process at a single dealership acquired in December 2021. Specifically, we did not apply the guidance in ASC 606 Revenue from Contracts with Customers related to transactions which required net reporting of certain fleet sales transactions within the Condensed Consolidated Statements of Operations. The effect of the error was an overstatement of fleet revenue and an equal overstatement of fleet cost of sales. No other financial statements were affected and there was no impact on note disclosures, unless related to the items in the table below.
The tables below reflect the sections of the Sonic’s condensed consolidated statements of operations that were impacted by the error.
  
Class A Common Stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   27,236,398
Class B common stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   12,029,375