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): April 26, 2011

SONIC AUTOMOTIVE, INC.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation)

1-13395
(Commission File Number) 56-201079
(IRS Employer Identification No.)

6415 Idlewild Road, Suite 109 Charlotte, North Carolina	28212
(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 April 26, 2011, we issued a press release announcing results for our fiscal quarter ended March 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 April 26, 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 April 26, 2011
99.2	Earnings call presentation materials
99.3	Press release of Sonic Automotive, Inc. dated April 26, 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/ Greg Young
	Greg Young
	Vice President – Finance

Dated: April 26, 2011

2

INDEX TO EXHIBITS

Exhibit No.	Description
99.1	Press release of Sonic Automotive, Inc. dated April 26, 2011
99.2	Earnings call presentation materials
99.3	Press release of Sonic Automotive, Inc. dated April 26, 2011

3

EX-99.1

Exhibit 99.1

Sonic Automotive, Inc. First Quarter 2011 Earnings up $9.2 million or 140%; Strong Growth
Trends Continue as Sonic’s Volume Outperforms Industry

CHARLOTTE, N.C. – April 26, 2011 – Sonic Automotive, Inc. (NYSE: SAH), one of the nation’s largest automotive retailers, today reported that 2011 first quarter earnings from continuing operations were $0.27 per diluted share compared to $0.12 per diluted share in the prior year quarter. The prior year period included pretax charges of $0.9 million, or $0.01 per diluted share, related to various debt refinancing transactions completed during the first quarter of 2010.

First Quarter 2011 Highlights

• Continuing operations net profit up $9.2 million or 140%

• Total revenues up 19% over prior year quarter

• New vehicle volume up 27%

• Used vehicle volume up 18%; Record used vehicle sales

• Parts and Service revenue up 6%

Business Overview

• Company growth trends continue across all business lines

• Automotive retailing industry continues its steady rebound

• SG&A metrics improved significantly from prior year quarter

• Profits continue to benefit from debt reduction strategy

Company Strategy

• Organic growth through focus on the base business

• Converting leased properties to owned properties

• Opportunistically reduce debt

Commenting on the first quarter results, B. Scott Smith, the Company’s President, said, “We are pleased with this quarter’s operating performance. Our continuing operations profit was up significantly from the prior year quarter due to our strong revenue growth and the improvement in our SG&A to gross profit metrics. We saw no disruption to our first quarter business from the natural disaster in Japan. We will provide a further business outlook on our conference call later this afternoon.”

Mr. Smith further stated, “Sonic Automotive’s new vehicle volume grew 27% over the first quarter of last year compared with new vehicle industry volume growth of 18% over the same period. Our ability to outperform the industry trend is a direct result of our strategy to grow our base business through the implementation of predictable, repeatable and sustainable best practices at each of our dealerships. We are seeing similar results in each of our business lines as we continue the rollout of our operational playbooks. We continued to see strong, steady growth in the automotive retailing sector this quarter and expect that to continue over the course of this year.”

The Company’s used vehicle retail volume was up 18% with used vehicle retail revenues up 15%. Parts and service revenue was up 6% compared to the first quarter of last year. Commenting on the business, Jeff Dyke, the

Company’s EVP of Operations, stated, “The used vehicle business remains very robust and we continue to gain market share. Our playbook implementation is the most advanced in this segment of our business but we continue to see tremendous growth potential. In our parts and service business, the growth trends we saw in the second half of 2010 have continued into 2011. Growing this high margin area of our business remains a key focus of our operational playbook rollout.”

Presentation materials for the Company’s April 26, 2011 earnings conference call at 2:00 P.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”.

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: 56248512, 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 future industry growth trends and future impacts from the implementation of our various operational playbooks. 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, 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)

	First Quarter Ended March 31,
	2011			2010
Revenues
New retail vehicles	$	917,105		$	734,592
Fleet vehicles		63,640			43,652
Total new vehicles		980,745			778,244
Used vehicles		482,031			418,849
Wholesale vehicles		35,362			30,806
Total vehicles		1,498,138			1,227,899
Parts, service and collision repair		291,770			275,172
Finance, insurance and other		49,468			40,595
Total revenues		1,839,376			1,543,666
Total gross profit		291,168			265,879
SG&A expenses		(232,514	)		(220,653	)
Impairment charges		(17	)		(44	)
Depreciation		(9,992	)		(8,418	)
Operating income		48,645			36,764
Interest expense, floor plan		(5,436	)		(4,798	)
Interest expense, other, net		(15,447	)		(17,151	)
Interest expense, non-cash, convertible debt		(1,694	)		(1,677	)
Interest expense / amortization, non-cash, cash flow swaps		178			(1,683	)
Other income (expense), net		73			64
Income from continuing operations before taxes		26,319			11,519
Provision for income taxes		(10,528	)		(4,953	)
Income from continuing operations		15,791			6,566
Loss from discontinued operations		(827	)		(2,412	)
Net income	$	14,964		$	4,154
Diluted:
Weighted average common shares outstanding		65,950			52,579
Earnings per share from continuing operations	$	0.27		$	0.12
Loss per share from discontinued operations		(0.01	)		(0.04	)
Earnings per share	$	0.26		$	0.08
Gross Margin Data (Continuing Operations):
New retail vehicles		6.3	%		6.9	%
Fleet vehicles		3.1	%		3.7	%
Total new vehicles		6.1	%		6.8	%
Used vehicles		7.9	%		8.3	%
Total vehicles retail		6.7	%		7.3	%
Wholesale vehicles		(1.3	%)		(2.1	%)
Parts, service and collision repair		49.3	%		50.4	%
Finance, insurance and other		100.0	%		100.0	%
Overall gross margin		15.8	%		17.2	%
SG&A Expenses (Continuing Operations):
Personnel	$	136,565		$	128,890
Advertising		13,782			11,175
Rent and rent related		30,416			32,850
Other		51,751			47,738
Total	$	232,514		$	220,653
SG&A Expenses as % of Gross Profit		79.9	%		83.0	%
Operating Margin %		2.6	%		2.4	%
Unit Data (Continuing Operations):
New retail units		26,896			21,382
Fleet units		2,488			1,750
Total new units		29,384			23,132
Used units		25,245			21,492
Total units retailed		54,629			44,624
Wholesale units		5,644			5,128
Other Data:
Continuing Operations unit volume percentage changes:
New retail units		25.8	%
Fleet units		42.2	%
Total new units		27.0	%
Used units		17.5	%
Total units retailed		22.4	%
Wholesale units		10.1	%

Sonic Automotive, Inc.

Earnings Per Share Reconciliation (Unaudited)

(In thousands, except per share data)

	For the First Quarter Ended March 31, 2011
			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		52,416	$	15,791				$	(827	)				$	14,964
Effect of Participating Securities:
Unvested Restricted Stock and Stock Units		—		(206	)				—						(206	)
Basic Earnings (Loss) Per Share		52,416	$	15,585		$	0.30	$	(827	)	$	(0.02	)	$	14,758		$	0.28
Effect of Dilutive Securities:
Contingently Convertible Debt (5.0% Convertible Notes)		12,890		2,310					—						2,310
Stock Compensation Plans		644
Diluted Earnings (Loss) Per Share		65,950	$	17,895		$	0.27	$	(827	)	$	(0.01	)	$	17,068		$	0.26

	For the First Quarter Ended March 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		51,889	$	6,566				$	(2,412	)				$	4,154
Effect of Participating Securities:
Unvested Restricted Stock and Stock Units		—		(79	)				—						(79	)
Basic Earnings (Loss) Per Share		51,889	$	6,487		$	0.13	$	(2,412	)	$	(0.05	)	$	4,075		$	0.08
Effect of Dilutive Securities:
Stock Compensation Plans		690
Diluted Earnings (Loss) Per Share		52,579	$	6,487		$	0.12	$	(2,412	)	$	(0.04	)	$	4,075		$	0.08

EX-99.2

1 Q1 Earnings Review April 26, 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, 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 Q1 2011 Quarter in Review Financial Results Operations Recap Summary and Outlook

4 Overall Results Grow the base business Operating Playbooks key to organic growth: Revenues up 19.2% New vehicle revenue up 26.0%, exceeding industry growth Used revenue up 15.1% F&I revenue up 21.9% Fixed Operations up 6.0% Own our dealerships: Purchased 5 additional properties Owned properties up to 18% of portfolio SG&A to Gross declined to 79.9% Income from continuing operations up 140.5% Q1 2011 diluted EPS from continuing operations was $0.27 per share, an increase of 125.0% from Q1 2010

Quarterly Results 5

6 SG&A - Q1 2011 310 bps Improvement (dollars in thousands)

Capital Spending 7 (amounts in millions)

Public Debt Maturities 8.625% Notes 5.0% Convertible Notes 9.0% Notes (due 2018) (amounts in millions)

9 Debt Covenants

New Retail Vehicles 10 Gross margin relatively stable sequentially Overall new vehicle gross profit continues to grow Increased volume driving F&I gross profit Up 18%

Japanese Brands Outlook April Vehicle inventories in good shape - Japanese brands' days supply was 45 days at 3/31/11 Expect no parts inventory issues Margins are increasing May Allocations will slow down; Inventory will get tighter Continue to increase used vehicle inventory Will impact new vehicle business beginning in mid-May June Will see an impact on new vehicle sales May impact other brands as well due to parts supply disruption Overall: Expect some new vehicle shortages in May & June Used: Increasing our days supply of nearly new / CPO vehicles Brand migration: May see some migration to other brands Demand: May see pent-up demand once inventory levels return What We're Doing Suspending all fleet deals No negative-level dealer trades No employee discounts Reducing new car advertising on these brands 11

12 Used Retail Vehicles All- Time Record

Fixed Operations YOY Sales Increase of $16.6M Gross Margin % was 49.3% at Q1 2011 13 All- Time Record All- Time Record

14 Summary Base business continues to grow New vehicle market share continues to increase Used retail vehicle volume and gross continue to grow at double-digit rates Fixed operations gross profit up for Q1 F&I benefitting from growth in new and used volume Used vehicle technology rollout begins in Q2 Playbook implementation continues

15 Outlook Core strategy is producing results Grow the base business Own our land and facilities Use cash flow to reduce debt Automotive retail industry continues its steady recovery Still tracking a 12.5 to 13 million SAAR Maintain continuing operations earnings guidance of $1.18 - $1.28 for FY 2011

EX-99.3

Exhibit 99.3

SONIC AUTOMOTIVE, INC. DECLARES QUARTERLY CASH DIVIDEND

CHARLOTTE, N.C. — April 26, 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 June 15, 2011. The dividend will be payable July 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, 2010. The Company does not undertake any obligation to update forward-looking information.