8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K
CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):        February 22, 2011    

SONIC AUTOMOTIVE, INC.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation)

1-13395	56-201079
(Commission File Number)	(IRS Employer Identification No.)
6415 Idlewild Road, Suite 109	28212
Charlotte, North Carolina
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (704) 566-2400

N/A
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))

Item 2.02.       Results of Operations and Financial Condition.

          On February 22, 2011, we issued a press release announcing results for our fiscal quarter and fiscal year ended December 31, 2010.

          A copy of the press release is attached hereto as Exhibit 99.1. A copy of the earnings call presentation materials is attached hereto as Exhibit 99.2.

Item 7.01.      Regulation FD Disclosure.

          On February 22, 2011, we issued a press release announcing the approval of a quarterly cash dividend.

          A copy of the press release is attached hereto as Exhibit 99.3.

Item 9.01.      Financial Statements and Exhibits.

          (d)        Exhibits.

99.1	Press release of Sonic Automotive, Inc. dated February 22, 2011
99.2	Earnings call presentation materials
99.3	Press release of Sonic Automotive, Inc. dated February 22, 2011

SIGNATURES

          Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

SONIC AUTOMOTIVE, INC.

By:	/s/ Stephen K. Coss Stephen K. Coss
	Senior Vice President and General Counsel

Dated: February 22, 2011

2

INDEX TO EXHIBITS

Exhibit No.	Description
99.1	Press release of Sonic Automotive, Inc. dated February 22, 2011
99.2	Earnings call presentation materials
99.3	Press release of Sonic Automotive, Inc. dated February 22, 2011

3

EX-99.1

Exhibit 99.1

Sonic Automotive, Inc. Fourth Quarter 2010 Adjusted Earnings up $7.4 million or 74%; Vehicle Sales
Continue Double Digit Growth Trends

CHARLOTTE, N.C. – February 22, 2011 – Sonic Automotive, Inc. (NYSE: SAH), one of the nation’s largest automotive retailers, today reported that 2010 fourth quarter earnings from continuing operations were $1.02 per diluted share compared to $0.46 per diluted share in the prior year quarter. On an adjusted basis, 2010 fourth quarter earnings from continuing operations were $0.30 per diluted share compared to $0.19 per diluted share in the prior year quarter. The adjustments for both periods, which include primarily impairment expenses and income tax benefits, are detailed further in the attached tables.

For the full year 2010, the Company reported earnings from continuing operations of $1.58 per diluted share compared to $1.07 per diluted share in the prior year. On an adjusted basis, full year earnings from continuing operations were $0.99 per diluted share compared to $0.81 per diluted share for the prior year period. The adjustments for both periods are detailed further in the attached tables.

Fourth Quarter 2010 Highlights

• Total revenues up 17% over prior year quarter

• New vehicle volume up 18%

• Used vehicle volume up 17%; Record annual volume and gross profit

• Parts and Service revenue up 8%; Record annual gross profit

Business Overview – Strong growth in all areas of the business

Commenting on the fourth quarter, B. Scott Smith, the Company’s President, said, “We are pleased with our operating results this quarter and proud of the way our dealerships are embracing our operating playbook best practices. Sonic Automotive benefited from an improved automotive retail environment and our ongoing focus on growing our core business. We continued to see significant growth in new and used vehicle sales in both our domestic and our luxury/import dealerships as our eCommerce and other advertising strategies continued to take effect. We capped off a very successful quarter in December by having the most profitable month in the history of our Company.”

New and Used Vehicles – New retail volume easily outpaces industry growth; Used volume continues double digit growth

Commenting on the Company’s vehicle sales, Jeff Dyke, the Company’s EVP of Operations noted, “The growth in our new vehicle business easily outpaced the overall industry growth of 13.5%. Our new vehicle retail revenue was up approximately 20% compared to the fourth quarter last year. We expect to see continued growth in this area as the industry continues its steady rebound and as we begin to introduce our new vehicle playbook in 2011.”

Relative to used vehicle sales, Mr. Dyke stated, “We are proud to be the used vehicle leader among the public franchised automobile dealer groups. Even with the double digit growth we’ve enjoyed for several years now, we believe significant future growth opportunities remain in this piece of our business as we continue to implement the more advanced stages of our strategy. The most exciting thing about the growth opportunities in new and used vehicles is the impact it has on the other areas of our business.”

Parts and Service – Revenues up 8%; Gross profit up 6%

Sonic’s parts and service revenue for the fourth quarter was up 8% compared with the prior year quarter. Mr. Dyke stated, “Our parts and service business continued the growth trend that we’ve seen all year. Our merchandising efforts, our focus on customer service, and the growth in our new and used vehicle business are helping us retain customers and grow our parts and service business.”

2011 Outlook

Scott Smith concluded his comments by stating, “We expect to see continued steady growth in the automotive retailing sector. We are targeting 2011 new vehicle industry volume of 12.5 million units. We currently expect earnings per share from continuing operations of between $1.18 and $1.28 for the full year 2011. We will have further comments on our 2011 outlook on our earnings call later today.”

Presentation materials for the Company’s February 22, 2011 earnings conference call at 11:00 A.M. (Eastern) can be accessed on the Company’s website at www.sonicautomotive.com by clicking on the “Investor Relations” tab under “Our Company” and choosing “Webcasts & Presentations” on the right side of the monitor.

To access the live broadcast of the call over the Internet go to:

www.sonicautomotive.com

A live audio of the call will be accessible to the public by calling (877) 791-3416. International callers dial (706) 643-0958. Callers should dial in approximately 10 minutes before the call begins.

A conference call replay will be available one hour following the call for seven days and can be accessed by calling: 800-642-1687, Conference ID: 41490497, International callers dial (706) 645-9291.

About Sonic Automotive

Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, N.C., is one of the nation’s largest automotive retailers. Sonic can be reached on the web at www.sonicautomotive.com.

Included herein are forward-looking statements, including statements with respect to growth in new and used vehicle sales, future success and impacts from the implementation of our various operational playbooks, future new vehicle industry volume and expected earnings per share. There are many factors that affect management’s views about future events and trends of the Company’s business. These factors involve risk and uncertainties that could cause actual results or trends to differ materially from management’s view, including without limitation, economic conditions in the markets in which we operate, new and used vehicle sales volume, the success of our operational strategies, the rate and timing of overall economic recovery and the risk factors described in the Company’s annual report on Form 10-K for the year ending December 31, 2009 and the quarterly report on Form 10-Q for the quarter ending September 30, 2010. The Company does not undertake any obligation to update forward-looking information.

Sonic Automotive, Inc.

Results of Operations (Unaudited)

(In thousands, except per share, unit data and percentage amounts)

This release contains certain non-GAAP financial measures as defined under SEC rules, such as, but not limited to, adjusted income from continuing operations, related earnings per share data and adjusted EBITDA. The Company has reconciled these measures to the most directly comparable GAAP measures in the release. The Company believes that these non-GAAP financial measures improve the transparency of the Company’s disclosure by providing period-to-period comparability of the Company’s results from operations.

	Three Months Ended									Three Months Ended
	As Reported						As Adjusted			As Reported						As Adjusted
	12/31/2010			Adjustments			12/31/2010			12/31/2009			Adjustments			12/31/2009
Revenues
New retail vehicles	$	975,849		$	-		$	975,849		$	811,914		$	-		$	811,914
Fleet vehicles		58,363			-			58,363			50,798			-			50,798
Total new vehicles		1,034,212			-			1,034,212			862,712			-			862,712
Used vehicles		437,258			-			437,258			370,015			-			370,015
Wholesale vehicles		40,705			-			40,705			41,551			-			41,551
Total vehicles		1,512,175			-			1,512,175			1,274,278			-			1,274,278
Parts, service and collision repair		285,357			-			285,357			264,269			-			264,269
Finance, insurance and other		47,361			-			47,361			38,138			-			38,138
Total revenues		1,844,893			-			1,844,893			1,576,685			-			1,576,685
Total gross profit		284,525			-			284,525			256,409			-			256,409
SG&A expenses		(224,155	)		-			(224,155	)		(209,660	)		5,165			(204,495	)
Impairment charges		(117	)		117			-			(17,753	)		17,753			-
Depreciation		(9,381	)		-			(9,381	)		(11,014	)		2,536			(8,478	)
Operating income		50,872			117			50,989			17,982			25,454			43,436
Interest expense, floor plan		(5,921	)		-			(5,921	)		(4,887	)		-			(4,887	)
Interest expense, other, net		(15,319	)		-			(15,319	)		(20,286	)		2,833			(17,453	)
Interest expense, non-cash, convertible debt		(1,739	)		-			(1,739	)		(2,235	)		-			(2,235	)
Interest expense / amortization, non-cash, cash flow swaps		519			(519	)		-			(6,410	)		6,410			-
Other income (expense), net		(3	)		-			(3	)		(9,196	)		9,198			2
Income (loss) from continuing operations before taxes		28,409			(402	)		28,007			(25,032	)		43,895			18,863
Provision for income taxes — benefit (expense)		37,409			(48,006	)		(10,597	)		53,091			(61,965	)		(8,874	)
Income (loss) from continuing operations		65,818			(48,408	)		17,410			28,059			(18,070	)		9,989
Income (loss) from discontinued operations		(1,464	)		602			(862	)		(13,809	)		10,831			(2,978	)
Net income (loss)	$	64,354		$	(47,806	)	$	16,548		$	14,250		$	(7,239	)	$	7,011
Diluted:
Weighted average common shares outstanding		66,042			-			66,042			65,634			-			65,634
Earnings (loss) per share from continuing operations	$	1.02		$	(0.72	)	$	0.30		$	0.46		$	(0.27	)	$	0.19
Earnings (loss) per share from discontinued operations		(0.02	)		-			(0.02	)		(0.21	)		0.16			(0.05	)
Earnings (loss) per share	$	1.00		$	(0.72	)	$	0.28		$	0.25		$	(0.11	)	$	0.14
Gross Margin Data (Continuing Operations):
Retail new vehicles		6.5	%					6.5	%		7.1	%					7.1	%
Fleet vehicles		3.5	%					3.5	%		3.1	%					3.1	%
Total new vehicles		6.3	%					6.3	%		6.9	%					6.9	%
Used vehicles retail		7.3	%					7.3	%		7.7	%					7.7	%
Total vehicles retail		6.6	%					6.6	%		7.1	%					7.1	%
Wholesale vehicles		(2.7	%)					(2.7	%)		(6.4	%)					(6.4	%)
Parts, service and collision repair		49.4	%					49.4	%		50.4	%					50.4	%
Finance, insurance and other		100.0	%					100.0	%		100.0	%					100.0	%
Overall gross margin		15.4	%					15.4	%		16.3	%					16.3	%
SG&A Expenses (Continuing Operations):
Personnel	$	130,676		$	-		$	130,676		$	116,683		$	-		$	116,683
Advertising		10,463			-			10,463			11,802			-			11,802
Rent and rent related		32,515			-			32,515			33,559			(1,091	)		32,468
Other		50,501			-			50,501			47,616			(4,074	)		43,542
Total	$	224,155		$	-		$	224,155		$	209,660		$	(5,165	)	$	204,495
SG&A Expenses as % of Gross Profit		78.8	%					78.8	%		81.8	%					79.8	%
Operating Margin %		2.8	%					2.8	%		1.1	%					2.8	%
Unit Data (Continuing Operations):
New retail units		27,011									22,882
Fleet units		2,289									1,895
Total new units		29,300									24,777
Used units		21,429									18,338
Total units retailed		50,729									43,115
Wholesale units		6,501									6,636
Other Data:
Continuing Operations revenue percentage changes:
New retail		20.2	%								11.0	%
Fleet		14.9	%								(10.7	%)
Total New Vehicles		19.9	%								9.5	%
Used		18.2	%								22.8	%
Parts, service and collision repair		8.0	%								0.0	%
Finance, insurance and other		24.2	%								11.9	%
Total		17.0	%								10.2	%
Description of Adjustments:	2010						2009
Continuing Operations:
Lease exit accruals	$	-					$	1,091
Franchise tax assessment		-						2,924
Property impairment charges		117						15,553
Franchise agreement impairment charges		-						2,200
Cash-flow swap ineffectiveness and amortization		(519	)					6,410
Derivative mark-to-market		-						1,150
Depreciation add-back		-						2,536
Debt restructuring charges		-						2,833
Loss on debt extinguishment		-						9,198
Total pre-tax adjustments	$	(402	)					43,895
Tax effect of above items		152						(20,651	)
Valuation allowance recovery		(48,158	)					(41,314	)
Total adjustments	$	(48,408	)				$	(18,070	)
Discontinued Operations:
Lease exit accruals	$	859					$	23,236
Property impairment charges		-						3,170
Total pre-tax adjustments		859						26,406
Tax effect of above items		(257	)					(9,440	)
Valuation allowance recovery		-						(6,135	)
Total adjustments	$	602					$	10,831

Sonic Automotive, Inc.

Results of Operations (Unaudited)

(In thousands, except per share, unit data and percentage amounts)

This release contains certain non-GAAP financial measures as defined under SEC rules, such as, but not limited to, adjusted income from continuing operations, related earnings per share data and adjusted EBITDA. The Company has reconciled these measures to the most directly comparable GAAP measures in the release. The Company believes that these non-GAAP financial measures improve the transparency of the Company’s disclosure by providing period-to-period comparability of the Company’s results from operations.

	Twelve Months Ended									Twelve Months Ended
	As Reported						As Adjusted			As Reported						As Adjusted
	12/31/2010			Adjustments			12/31/2010			12/31/2009			Adjustments			12/31/2009
Revenues
New retail vehicles	$	3,438,988		$	-		$	3,438,988		$	3,014,960		$	-		$	3,014,960
Fleet vehicles		207,212			-			207,212			214,988			-			214,988
Total new vehicles		3,646,200			-			3,646,200			3,229,948			-			3,229,948
Used vehicles		1,776,581			-			1,776,581			1,451,870			-			1,451,870
Wholesale vehicles		149,041			-			149,041			147,002			-			147,002
Total vehicles		5,571,822			-			5,571,822			4,828,820			-			4,828,820
Parts, service and collision repair		1,128,054			-			1,128,054			1,071,825			-			1,071,825
Finance, insurance and other		180,968			-			180,968			154,696			-			154,696
Total revenues		6,880,844			-			6,880,844			6,055,341			-			6,055,341
Total gross profit		1,114,678			-			1,114,678			1,032,672			-			1,032,672
SG&A expenses		(896,697	)		647			(896,050	)		(829,220	)		4,015			(825,205	)
Impairment charges		(249	)		249			-			(23,460	)		23,460			-
Depreciation		(35,110	)		-			(35,110	)		(34,879	)		-			(34,879	)
Operating income		182,622			896			183,518			145,113			27,475			172,588
Interest expense, floor plan		(21,536	)		-			(21,536	)		(19,812	)		-			(19,812	)
Interest expense, other, net		(63,343	)		1,464			(61,879	)		(78,284	)		11,992			(66,292	)
Interest expense, non-cash, convertible debt		(6,914	)		-			(6,914	)		(679	)		(11,300	)		(11,979	)
Interest expense / amortization, non-cash, cash flow swaps		(4,883	)		4,883			-			(11,769	)		11,769			-
Other income (expense), net		(7,525	)		7,665			140			(6,677	)		6,746			69
Income (loss) from continuing operations before taxes		78,421			14,908			93,329			27,892			46,682			74,574
Provision for income taxes — benefit (expense)		17,504			(53,985	)		(36,481	)		29,275			(61,464	)		(32,189	)
Income (loss) from continuing operations		95,925			(39,077	)		56,848			57,167			(14,782	)		42,385
Income (loss) from discontinued operations		(5,996	)		625			(5,371	)		(25,619	)		15,457			(10,162	)
Net income (loss)	$	89,929		$	(38,452	)	$	51,477		$	31,548		$	675		$	32,223
Diluted:
Weighted average common shares outstanding		65,794			-			65,794			55,832			-			55,832
Earnings (loss) per share from continuing operations	$	1.58		$	(0.59	)	$	0.99		$	1.07		$	(0.26	)	$	0.81
Earnings (loss) per share from discontinued operations		(0.09	)		0.01			(0.08	)		(0.45	)		0.27			(0.18	)
Earnings (loss) per share	$	1.49		$	(0.58	)	$	0.91		$	0.62		$	0.01		$	0.63
Gross Margin Data (Continuing Operations):
Retail new vehicles		6.7	%					6.7	%		7.0	%					7.0	%
Fleet vehicles		3.0	%					3.0	%		3.5	%					3.5	%
Total new vehicles		6.5	%					6.5	%		6.8	%					6.8	%
Used vehicles retail		7.9	%					7.9	%		8.5	%					8.5	%
Total vehicles retail		6.9	%					6.9	%		7.3	%					7.3	%
Wholesale vehicles		(3.4	%)					(3.4	%)		(3.7	%)					(3.7	%)
Parts, service and collision repair		49.8	%					49.8	%		50.4	%					50.4	%
Finance, insurance and other		100.0	%					100.0	%		100.0	%					100.0	%
Overall gross margin		16.2	%					16.2	%		17.1	%					17.1	%
SG&A Expenses (Continuing Operations):
Personnel	$	526,577		$	-		$	526,577		$	470,293		$	-		$	470,293
Advertising		46,908			-			46,908			44,736			-			44,736
Rent and rent related		130,739			-			130,739			131,262			(1,091	)		130,171
Other		192,473			(647	)		191,826			182,929			(2,924	)		180,005
Total	$	896,697		$	(647	)	$	896,050		$	829,220		$	(4,015	)	$	825,205
SG&A Expenses as % of Gross Profit		80.4	%					80.4	%		80.3	%					79.9	%
Operating Margin %		2.7	%					2.7	%		2.4	%					2.9	%
Unit Data (Continuing Operations):
New retail units		98,820									90,664
Fleet units		8,331									8,697
Total new units		107,151									99,361
Used units		90,290									75,795
Total units retailed		197,441									175,156
Wholesale units		24,128									25,271
Other Data:
Continuing Operations revenue percentage changes:
New retail		14.1	%								(18.4	%)
Fleet		(3.6	%)								(31.8	%)
Total New Vehicles		12.9	%								(19.4	%)
Used		22.4	%								8.1	%
Parts, service and collision repair		5.2	%								(2.2	%)
Finance, insurance and other		17.0	%								(14.2	%)
Total		13.6	%								(12.2	%)
Description of Adjustments:	2010						2009
Continuing Operations:
Hail storm related expenses	$	647					$	-
Lease exit accruals		-						1,091
Franchise tax assessment		-						2,924
Property impairment charges		249						18,066
Goodwill impairment charges		-						1,094
Franchise agreement impairment charges		-						4,300
Cash-flow swap ineffectiveness and amortization		4,883						11,769
Derivative mark-to-market		-						(11,300	)
Debt restructuring charges		1,464						11,992
Loss on debt extinguishment		7,665						6,746
Total pre-tax adjustments	$	14,908					$	46,682
Tax effect of above items		(5,827	)					(20,150	)
Valuation allowance recovery		(48,158	)					(41,314	)
Total adjustments	$	(39,077	)				$	(14,782	)
Discontinued Operations:
Lease exit accruals	$	859					$	27,586
Property impairment charges		-						4,992
Goodwill impairment charges		-						1,586
Total pre-tax adjustments	$	859					$	34,164
Tax effect of above items		(234	)					(12,572	)
Valuation allowance recovery		-						(6,135	)
Total adjustments	$	625					$	15,457

Sonic Automotive, Inc.

Earnings Per Share Reconciliation (Unaudited)

(In thousands, except per share data)

	For the Three Months Ended December 31, 2009
			Income					Loss
			From Continuing					From Discontinued
			Operations					Operations						Net Income
	Weighted					Per					Per						Per
	Average					Share					Share						Share
	Shares		Amount			Amount		Amount			Amount			Amount			Amount
Earnings (Loss) and Shares		51,868	$	28,059		$	0.54	$	(13,809	)	$	(0.27	)	$	14,250
Effect of Participating Securities:
Unvested Restricted Stock and Stock Units		-		(168	)				-						(168	)
Basic Earnings (Loss) Per Share		51,868	$	27,891		$	0.54	$	(13,809	)	$	(0.27	)	$	14,082		$	0.27
Effect of Dilutive Securities:
Contingently Convertible Debt ( 5.0% Convertible Notes)		12,890		2,225					55						2,280
Stock Compensation Plans		876
Diluted Earnings (Loss) Per Share		65,634	$	30,116		$	0.46	$	(13,754	)	$	(0.21	)	$	16,362		$	0.25

	For the Three Months Ended December 31, 2010
			Income					Loss
			From Continuing					From Discontinued
			Operations					Operations						Net Income
	Weighted					Per					Per						Per
	Average					Share					Share						Share
	Shares		Amount			Amount		Amount			Amount			Amount			Amount
Earnings (Loss) and Shares		52,401	$	65,818		$	1.26	$	(1,464	)	$	(0.03	)	$	64,354
Effect of Participating Securities:
Unvested Restricted Stock and Stock Units		-		(630	)				-						(630	)
Basic Earnings (Loss) Per Share		52,401	$	65,188		$	1.24	$	(1,464	)	$	(0.02	)	$	63,724		$	1.22
Effect of Dilutive Securities:
Contingently Convertible Debt ( 5.0% Convertible Notes)		12,890		2,313					3						2,316
Stock Compensation Plans		751
Diluted Earnings (Loss) Per Share		66,042	$	67,501		$	1.02	$	(1,461	)	$	(0.02	)	$	66,040		$	1.00

	For the Twelve Months Ended December 31, 2009
			Income					Loss
			From Continuing					From Discontinued
			Operations					Operations						Net Income
	Weighted					Per					Per						Per
	Average					Share					Share						Share
	Shares		Amount			Amount		Amount			Amount			Amount			Amount
Earnings (Loss) and Shares		43,836	$	57,167		$	1.30	$	(25,619	)	$	(0.58	)	$	31,548
Effect of Participating Securities:
Unvested Restricted Stock and Stock Units		-		(406	)				-						(406	)
Basic Earnings (Loss) Per Share		43,836	$	56,761		$	1.29	$	(25,619	)	$	(0.58	)	$	31,142		$	0.71
Effect of Dilutive Securities:
Contingently Convertible Debt ( 6.0% Convertible Notes)		7,833		916					23						939
Contingently Convertible Debt ( 5.0% Convertible Notes)		3,496		2,225					55						2,280
Stock Compensation Plans		667
Diluted Earnings (Loss) Per Share		55,832	$	59,902		$	1.07	$	(25,541	)	$	(0.45	)	$	34,361		$	0.62

	For the Twelve Months Ended December 31, 2010
			Income					Loss
			From Continuing					From Discontinued
			Operations					Operations						Net Income
	Weighted					Per					Per						Per
	Average					Share					Share						Share
	Shares		Amount			Amount		Amount			Amount			Amount			Amount
Earnings (Loss) and Shares		52,214	$	95,925		$	1.84	$	(5,996	)	$	(0.11	)	$	89,929
Effect of Participating Securities:
Unvested Restricted Stock and Stock Units		-		(921	)				-						(921	)
Basic Earnings (Loss) Per Share		52,214	$	95,004		$	1.82	$	(5,996	)	$	(0.12	)	$	89,008		$	1.70
Effect of Dilutive Securities:
Contingently Convertible Debt ( 5.0% Convertible Notes)		12,890		9,022					31						9,053
Stock Compensation Plans		690
Diluted Earnings (Loss) Per Share		65,794	$	104,026		$	1.58	$	(5,965	)	$	(0.09	)	$	98,061		$	1.49

EX-99.2

1 Q4 Earnings Review February 22, 2011 Exhibit 99.2

2 Cautionary Notice: Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events, are not historical facts and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. These statements can generally be identified by lead-in words such as "believe", "expect", "anticipate", "intend", "plan", "foresee", "may" ,"will" and other similar words. Statements that describe our Company's objectives, plans or goals are also forward-looking statements. Examples of such forward-looking information we may be discussing in this presentation include, without limitation, further implementation of our operational strategies and playbooks, future debt retirement, capital expenditures, operating margins and revenues, inventory levels and new vehicle industry sales volume. You are cautioned that these forward-looking statements are not guarantees of future performance, involve risks and uncertainties and actual results may differ materially from those projected in the forward-looking statements as a result of various factors. These risks and uncertainties include, among other things, (a) economic conditions in the markets in which we operate, (b) the success of our operational strategies, (c) our relationships with the automobile manufacturers and (d) new and used vehicle sales volume. These risks and uncertainties, as well as additional factors that could affect our forward-looking statements, are described in our Form 10-K for the year ending December 31, 2009 and our Form 10-Q for the quarter ending September 30, 2010. These forward-looking statements, risks, uncertainties and additional factors speak only as of the date of this presentation. We undertake no obligation to update any such statements.

3 Sonic Automotive Q4 2010 Quarter in Review Financial Results Operations Recap Summary and Outlook

4 Overall Results - Q4 2010 Portfolio maximization strategy continues to drive results: Operating Playbooks key to organic growth: Revenues up 17.0% New vehicle revenue up 19.9%, exceeding industry growth Used revenue up 18.2% Fixed Operations up 8.0% Balance sheet and liquidity in great shape Real estate opportunities remain available SG&A to Gross declined to 78.8% Adjusted income from continuing operations up 74.3% Q4 adjusted diluted EPS from continuing operations was $0.30 per share, an increase of 57.9% from 2009

Quarterly Results (Adjusted*) *See appendix for reconciliation to GAAP amounts 5 * *

Annual Results (Adjusted*) *See appendix for reconciliation to GAAP amounts 6 * *

7 Adjusted EBITDA - All Operations (amount s in millions)

8 SG&A - Q4 2010 (1) SG&A amounts adjusted for $1.1M lease exit charge, $2.9M franchise tax assessment and $1.2M swap adjustment. Unadjusted amounts are $12.7M for Other Variable, $25.3M for Rent Expense, $34.9M for Other Fixed, $209.7M for Total SG&A and 81.8% for SG&A % of Gross. 100 bps Improvement (1) (dollars in thousands)

9 Liquidity (1)Excludes other non-public debt principal (primarily mortgages) of $140.8 million and $155.6 million at December 31, 2009 and December 31, 2010, respectively. (1) (1)

Capital Spending 10 (amounts in millions)

11 Debt Covenants Compliant with all Covenants

New Retail Vehicles 12 Revenue $ Gross $ Sequential revenue and gross increases since Q1 2010. (Q4 2010 significantly higher than Q4 2009) (amounts in millions)

New Retail Vehicle Trend 13 * F&I revenue associated with new vehicle sales ** Q3 2009 included Cash for Clunkers program * **

14 Used Retail Vehicles Volume Multiple year double-digit growth in unit volume

Used Retail Vehicle Trend 15 * F&I revenue associated with used vehicle retail sales

16 Fixed Operations Revenue Trend 2.8% YOY 4.7% YOY 5.6% YOY 8.0% YOY ($'s in millions)

17 Fixed Operations Gross Trend 4.2% YOY 3.2% YOY 2.8% YOY 6.0% YOY ($'s in millions)

18 Summary Strong operating performance: New vehicle volume easily outpaced industry Used retail vehicle volume and gross continue to grow Fixed operations gross profit up for Q4 and full year F&I continues to benefit from growth in new and used volume 28% total company turnover; 80% customer satisfaction Predictable, Repeatable, Sustainable process strategy continues: New vehicle playbook rollout just beginning Used vehicle and F&I refinements continue Generating increasing amounts of cash for strategic purposes

2011 Outlook Expect New Vehicle SAAR of 12.5 million Used Vehicle Growth in low double digits Property Purchases to Continue Expect SG&A to gross below 80% Targeting 2011 Diluted EPS from Continuing Operations of $1.18 - $1.28 19

20

21 Reconciliation of Non-GAAP Financial Information

22 Reconciliation of Non-GAAP Financial Information

23 Reconciliation of Non-GAAP Financial Information

24 Reconciliation of Non-GAAP Financial Information

25 Reconciliation of Non-GAAP Financial Information

26 Reconciliation of Non-GAAP Financial Information

27 Reconciliation of Non-GAAP Financial Information

EX-99.3

Exhibit 99.3

SONIC AUTOMOTIVE, INC. DECLARES QUARTERLY CASH DIVIDEND

CHARLOTTE, N.C. – February 22, 2011 – Sonic Automotive, Inc. (NYSE: SAH), a leader in automotive retailing, today announced that its Board of Directors approved a quarterly dividend of $0.025 per share payable in cash for shareholders of record on March 15, 2011. The dividend will be payable April 15, 2011.

Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, N.C., is one of the nation’s largest automotive retailers. Sonic can be reached on the web at www.sonicautomotive.com.

Included herein is a forward-looking statement pertaining to an anticipated cash dividend to shareholders. There are many factors that affect management’s views about future events and trends of the Company’s business. These factors involve risk and uncertainties that could cause actual results or trends to differ materially from management’s view, including without limitation, economic conditions in the markets in which we operate, new and used vehicle sales volume, the success of our operational strategies, the rate and timing of overall economic recovery and the risk factors described in the Company’s annual report on Form 10-K for the year ending December 31, 2009 and the quarterly report on Form 10-Q for the quarter ending September 30, 2010. The Company does not undertake any obligation to update forward-looking information.