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 22, 2014

SONIC AUTOMOTIVE, INC.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction

of incorporation)

001-13395	56-201079
(Commission File Number)	(IRS Employer Identification No.)

4401 Colwick Road Charlotte, North Carolina	28211
(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:

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

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

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

¨ 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 22, 2014, we issued a press release announcing results for our fiscal quarter ended March 31, 2014. A copy of the press release is attached hereto as Exhibit 99.1 and a copy of the earnings call presentation materials is attached hereto as Exhibit 99.2.

Item 5.07 Submission of Matters to a Vote of Security Holders.

At Sonic’s Annual Meeting of Stockholders held on April 16, 2014, the following actions took place:

Mr. O. Bruton Smith, Mr. B. Scott Smith, Mr. David Bruton Smith, Mr. William I. Belk, Mr. William R. Brooks, Mr. Bernard C. Byrd, Jr., Mr. Victor H. Doolan, Mr. Robert Heller and Mr. Robert L. Rewey were reelected as directors by Sonic’s stockholders.

	Votes For		Votes Withheld		Broker Non-Votes		Votes Abstained
Election of O. Bruton Smith		149,252,066		1,166,158		8,573,832		—
Election of B. Scott Smith		148,555,799		1,862,425		8,573,832		—
Election of David Bruton Smith		148,637,389		1,780,835		8,573,832		—
Election of William I. Belk		137,947,564		12,470,660		8,573,832		—
Election of William R. Brooks		148,777,480		1,640,744		8,573,832		—
Election of Bernard C. Byrd, Jr.		144,441,737		5,976,487		8,573,832
Election of Victor H. Doolan		137,950,323		12,467,901		8,573,832		—
Election of Robert Heller		137,852,657		12,565,567		8,573,852		—
Election of Robert L. Rewey		145,892,907		4,525,317		8,573,852		—

Sonic’s stockholders approved, on a non-binding advisory basis, Sonic’s executive compensation as disclosed in its proxy statement for the Annual Meeting.

	Votes For		Votes Against		Broker Non-Votes		Votes Abstained
Approval, on a non-binding advisory basis, of Sonic’s executive compensation as disclosed in its proxy statement for the Annual Meeting		144,155,559		6,177,765		8,573,932		84,900

Sonic’s stockholders approved the Sonic Automotive, Inc. Incentive Compensation Plan as disclosed in its proxy statement for the Annual Meeting.

	Votes For		Votes Against		Broker Non-Votes		Votes Abstained
Approval of the Sonic Automotive, Inc. Incentive Compensation Plan		149,352,744		1,058,152		8,573,932		7,328

Sonic’s stockholders ratified of the appointment of Ernst & Young LLP as Sonic’s independent accountants for the fiscal year ending December 31, 2014.

	Votes For		Votes Against		Broker Non-Votes		Votes Abstained
Ratification of appointment of Ernst & Young LLP as the independent public accounting firm		158,965,433		23,220		0		3,503

- 2 -

Item 7.01 Regulation FD Disclosure.

On April 22, 2014, 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 22, 2014
99.2	Earnings call presentation materials
99.3	Press release of Sonic Automotive, Inc. dated April 22, 2014

- 3 -

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/ HEATH R. BYRD
	Heath R. Byrd
	Executive Vice President and Chief Financial Officer

Dated: April 22, 2014

- 4 -

INDEX TO EXHIBITS

Exhibit No.	Description
99.1	Press release of Sonic Automotive, Inc. dated April 22, 2014
99.2	Earnings call presentation materials
99.3	Press release of Sonic Automotive, Inc. dated April 22, 2014

- 5 -

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Sonic Automotive, Inc. Posts All-Time Record Pre-Owned Unit Sales and Q1 Record Pre-Owned Gross Profits

CHARLOTTE, N.C. – April 22, 2014 – Sonic Automotive, Inc. (NYSE: SAH), one of the nation’s largest automotive retailers, today reported 2014 first quarter earnings from continuing operations of $20.0 million compared to $21.7 million in the prior year quarter. Continuing operations earnings per diluted share were $0.38 in the first quarter of 2014 compared to $0.41 in the prior year quarter. Sonic estimates that first quarter 2014 weather events in the southeast negatively affected continuing operations earnings per diluted share by approximately $0.02. Expenses attributable to Sonic’s stand-alone pre-owned store initiative also reduced continuing operations earnings per diluted share by an additional $0.02 in the first quarter of 2014.

Q1 2014 Highlights:

• All-time record pre-owned unit sales of 27,657 in Q1 2014

• Record Q1 pre-owned gross profit of $40.7 million in 2014

• Pre-owned unit sales per store per month reached 90 units in Q1 2014

• Q1 2014 fixed operations revenue up $22.1 million, or 7.5% over the prior year quarter

• Record Q1 fixed operations gross profit of $152.1 million, up $7.9 million over the prior year quarter

B. Scott Smith, the Company’s President, noted, “We have been very busy in the first quarter. I’m happy with the progress we have made in both pre-owned and in our customer experience initiatives. We are very excited about the opening of our pre-owned stores in Denver expected in the fourth quarter 2014. Our collection of highly skilled professionals, operational playbooks and state-of-the-art technology will provide us with a competitive advantage over others in this pre-owned space.”

“With our customer experience initiative (One-Sonic One-Experience), we intend on helping the retail automotive industry change toward the way current and future consumers want to shop for cars and trucks. Our goal is to provide options to customers that are enjoyable, transparent and consistent with their lifestyles. We plan on beginning the roll out this new shopping experience to our customers in the Charlotte, North Carolina market in the third quarter of 2014, and we will launch the customer experience initiative in other markets after the Charlotte roll out is complete.”

“We would also like to reiterate our targeted range of diluted earnings per share from continuing operations for full year 2014 of $1.95 to $2.05. This range includes an expected $0.14 per diluted share effect related to costs of our stand-alone pre-owned initiative. Excluding the anticipated effects of this initiative, our targeted range of diluted earnings per share from continuing operations for full year 2014 is $2.09 to $2.19.”

Jeff Dyke, Sonic’s EVP of Operations, stated, “We continue to demonstrate our ability to operate and grow in the pre-owned space at record levels. Compared to the prior year quarter, we were able to grow pre-owned unit sales by 4.5% and pre-owned gross profit by 7.0%. In addition, our fixed operations teams were able to achieve record results despite the weather issues that plagued many of our southeastern stores during the quarter. We achieved fixed operations revenue and gross profit growth over the prior year quarter of 7.5% and 5.5%, respectively. While new retail unit volumes were relatively flat compared to the prior year quarter, we were able to increase our gross profit per unit to $2,191, up $58 per unit versus Q1 2013. We continue to make progress on our One-Sonic One-Experience and stand-alone pre-owned store projects, which are all on track. While the weather caused a slowdown in January and February, we still beat our internal forecast for Q1 2014, and we remain on track to achieve our EPS target for the full year.”

“We continue testing our True Price^® pricing methodology. This quarter we began to see two things happen – as the market grew stronger, our share stabilized, and we grew market share sequentially over the prior quarter and we were able to grow new car margin by $58 per retail unit. This marks the first time in over a year of adjusting our model that both share and margin grew together in the quarter. As we move toward our One-Sonic One-Experience launch, we expect to gain significant market share as customers benefit from the entire complement of our new shopping experience. Bottom line, when we fully implement One-Sonic One-Experience, we will offer the automobile buying community a shopping experience that no other competitor in our industry can offer, or will be able to offer, for several years to come.”

First Quarter Earnings Conference Call

Senior management will host a conference call today at 10:00 A.M. (Eastern) to discuss the quarter’s results. To access the live broadcast of the call over the Internet go to: www.sonicautomotive.com, then click on “Our Company”, then “Investor Relations”, then “Earnings Conference Calls”.

Presentation materials for the conference call 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”.

The conference call will also be available live by dialing in 10 minutes prior to the start of the call at:

Domestic: 1.877.450.3867

International: 1.706.643.0958

Conference ID: 76537421

A conference call replay will be available one hour following the call for seven days and can be accessed by calling:

Domestic: 1.855.859.2056

International: 1.404.537.3406

Conference ID: 76537421

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 anticipated earnings per share from continuing operations, expected expense impacts of our company’s stand-alone pre-owned store initiative, anticipated growth in new vehicle sales, and anticipated future success and impacts from the implementation of our planned customer experience and stand-alone pre-owned store initiatives. 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 industry sales volume, the success of our operational strategies, the rate and timing of overall economic recovery or decline, and the risk factors described in the Company’s annual report on Form 10-K for the year ending December 31, 2013. The Company does not undertake any obligation to update forward-looking information.

###

Contact:	Heath Byrd, Chief Financial Officer (704) 566-2400
	C.G. Saffer, Vice President and Chief Accounting Officer (704) 566-2439

Sonic Automotive, Inc.

Results of Operations (Unaudited)

	First Quarter Ended March 31, 2014			First Quarter Ended March 31, 2013
	(In thousands, except per share and unit data)
Revenues:
New retail vehicles	$	1,112,291		$	1,101,109
Fleet vehicles		34,329			41,947
Total new vehicles		1,146,620			1,143,056
Used vehicles		559,816			526,182
Wholesale vehicles		41,598			51,792
Total vehicles		1,748,034			1,721,030
Parts, service and collision repair		318,771			296,642
Finance, insurance and other, net		69,581			65,494
Total revenues		2,136,386			2,083,166
Gross profit		329,000			313,020
Selling, general and administrative expenses		(263,973	)		(245,824	)
Impairment charges		(3	)		(15	)
Depreciation and amortization		(14,381	)		(12,134	)
Operating income (loss)		50,643			55,047
Other income (expense):
Interest expense, floor plan		(4,689	)		(5,213	)
Interest expense, other, net		(13,818	)		(14,359	)
Other income (expense), net		97			95
Total other income (expense)		(18,410	)		(19,477	)
Income (loss) from continuing operations before taxes		32,233			35,570
Provision for income taxes - benefit (expense)		(12,249	)		(13,873	)
Income (loss) from continuing operations		19,984			21,697
Income (loss) from discontinued operations		(598	)		(406	)
Net income (loss)	$	19,386		$	21,291
Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations	$	0.38		$	0.41
Earnings (loss) per share from discontinued operations		(0.02	)		(0.01	)
Earnings (loss) per common share	$	0.36		$	0.40
Weighted average common shares outstanding		52,946			52,931
Gross Margin Data (Continuing Operations):
New retail vehicles		5.9	%		5.9	%
Fleet vehicles		2.6	%		3.0	%
Total new vehicles		5.8	%		5.8	%
Used vehicles		7.3	%		7.2	%
Wholesale vehicles		(0.2	%)		(2.3	%)
Parts, service and collision repair		47.7	%		48.6	%
Finance, insurance and other		100.0	%		100.0	%
Overall gross margin		15.4	%		15.0	%
SG&A Expenses (Continuing Operations):
Compensation	$	157,154		$	148,580
Advertising		14,119			13,431
Rent		18,535			19,022
Other		74,165			64,791
Total SG&A expenses	$	263,973		$	245,824
SG&A expenses as % of gross profit		80.2	%		78.5	%
Operating Margin %		2.4	%		2.6	%
Unit Data (Continuing Operations):
New retail units		30,029			30,590
Fleet units		1,102			1,493
Total new units		31,131			32,083
Used units		27,657			26,469
Wholesale units		7,380			8,393

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Per Share Data

	First Quarter Ended March 31, 2014
			Income (Loss) From Continuing Operations					Income (Loss) From Discontinued Operations						Net income (Loss)
	Weighted Average Shares		Amount			Per Share Amount		Amount			Per Share Amount			Amount			Per Share Amount
	(In thousands, except per share amounts)
Reported:
Earnings (loss) and shares		52,418	$	19,984				$	(598	)				$	19,386
Effect of participating securities:
Non-vested restricted stock and stock units				(63	)				—						(63	)
Basic earnings (loss) and shares		52,418	$	19,921		$	0.38	$	(598	)	$	(0.01	)	$	19,323		$	0.37
Effect of dilutive securities:
Stock compensation plans		528
Diluted earnings (loss) and shares		52,946	$	19,921		$	0.38	$	(598	)	$	(0.02	)	$	19,323		$	0.36
	First Quarter Ended March 31, 2013
			Income (Loss) From Continuing Operations					Income (Loss) From Discontinued Operations						Net Income (Loss)
	Weighted Average Shares		Amount			Per Share Amount		Amount			Per Share Amount			Amount			Per Share Amount
	(In thousands, except per share amounts)
Reported:
Earnings (loss) and shares		52,586	$	21,697				$	(406	)				$	21,291
Effect of participating securities:
Non-vested restricted stock and stock units				(170	)				—						(170	)
Basic earnings (loss) and shares		52,586	$	21,527		$	0.41	$	(406	)	$	(0.01	)	$	21,121		$	0.40
Effect of dilutive securities:
Stock compensation plans		345
Diluted earnings (loss) and shares		52,931	$	21,527		$	0.41	$	(406	)	$	(0.01	)	$	21,121		$	0.40

Sonic Automotive, Inc.

Results of Operations (Unaudited)

New Vehicles

	First Quarter Ended March 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	1,146,620		$	1,143,056		$	3,564			0.3	%
Gross profit	$	66,673		$	66,470		$	203			0.3	%
Unit sales		31,131			32,083			(952	)		(3.0	%)
Revenue per unit	$	36,832		$	35,628		$	1,204			3.4	%
Gross profit per unit	$	2,142		$	2,072		$	70			3.4	%
Gross profit as a % of revenue		5.8	%		5.8	%		0			bps
	First Quarter Ended March 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	1,129,303		$	1,143,056		$	(13,753	)		(1.2	%)
Gross profit	$	65,372		$	66,341		$	(969	)		(1.5	%)
Unit sales		30,818			32,083			(1,265	)		(3.9	%)
Revenue per unit	$	36,644		$	35,628		$	1,016			2.9	%
Gross profit per unit	$	2,121		$	2,068		$	53			2.6	%
Gross profit as a % of revenue		5.8	%		5.8	%		0			bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Used Vehicles

	First Quarter Ended March 31,						Better / (Worse)
	2014			2013			Change		% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	559,816		$	526,182		$	33,634		6.4	%
Gross profit	$	40,693		$	38,030		$	2,663		7.0	%
Unit sales		27,657			26,469			1,188		4.5	%
Revenue per unit	$	20,241		$	19,879		$	362		1.8	%
Gross profit per unit	$	1,471		$	1,437		$	34		2.4	%
Gross profit as a % of revenue		7.3	%		7.2	%		10		bps
	First Quarter Ended March 31,						Better / (Worse)
	2014			2013			Change		% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	546,937		$	526,182		$	20,755		3.9	%
Gross profit	$	39,870		$	37,262		$	2,608		7.0	%
Unit sales		27,126			26,469			657		2.5	%
Revenue per unit	$	20,163		$	19,879		$	284		1.4	%
Gross profit per unit	$	1,470		$	1,408		$	62		4.4	%
Gross profit as a % of revenue		7.3	%		7.1	%		20		bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Wholesale Vehicles

	First Quarter Ended March 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	41,598		$	51,792		$	(10,194	)		(19.7	%)
Gross profit (loss)	$	(93	)	$	(1,203	)	$	1,110			92.3	%
Unit sales		7,380			8,393			(1,013	)		(12.1	%)
Revenue per unit	$	5,637		$	6,171		$	(534	)		(8.7	%)
Gross profit (loss) per unit	$	(13	)	$	(143	)	$	130			90.9	%
Gross profit (loss) as a % of revenue		(0.2	%)		(2.3	%)		210			bps
	First Quarter Ended March 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	40,627		$	51,792		$	(11,165	)		(21.6	%)
Gross profit (loss)	$	28		$	(1,203	)	$	1,231			102.3	%
Unit sales		7,270			8,393			(1,123	)		(13.4	%)
Revenue per unit	$	5,588		$	6,171		$	(583	)		(9.4	%)
Gross profit (loss) per unit	$	4		$	(143	)	$	147			102.8	%
Gross profit (loss) as a % of revenue		0.1	%		(2.3	%)		240			bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Parts, Service and Collision Repair (“Fixed Operations”)

	First Quarter Ended March 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands)
Reported:
Revenue
Customer pay	$	141,121		$	133,803		$	7,318			5.5	%
Warranty		46,591			44,813			1,778			4.0	%
Wholesale parts		47,944			40,538			7,406			18.3	%
Internal, sublet and other		83,115			77,488			5,627			7.3	%
Total	$	318,771		$	296,642		$	22,129			7.5	%
Gross profit
Customer pay	$	77,999		$	74,116		$	3,883			5.2	%
Warranty		25,238			23,895			1,343			5.6	%
Wholesale parts		8,161			7,619			542			7.1	%
Internal, sublet and other		40,748			38,599			2,149			5.6	%
Total	$	152,146		$	144,229		$	7,917			5.5	%
Gross profit as a % of revenue
Customer pay		55.3	%		55.4	%		(10	)		bps
Warranty		54.2	%		53.3	%		90			bps
Wholesale parts		17.0	%		18.8	%		(180	)		bps
Internal, sublet and other		49.0	%		49.8	%		(80	)		bps
Total		47.7	%		48.6	%		(90	)		bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Parts, Service and Collision Repair (“Fixed Operations”)

	First Quarter Ended March 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands)
Same Store:
Revenue
Customer pay	$	136,121		$	133,803		$	2,318			1.7	%
Warranty		45,237			44,813			424			0.9	%
Wholesale parts		46,607			40,538			6,069			15.0	%
Internal, sublet and other		81,538			77,489			4,049			5.2	%
Total	$	309,503		$	296,643		$	12,860			4.3	%
Gross profit
Customer pay	$	75,365		$	74,116		$	1,249			1.7	%
Warranty		24,523			24,195			328			1.4	%
Wholesale parts		7,820			7,619			201			2.6	%
Internal, sublet and other		39,724			38,423			1,301			3.4	%
Total	$	147,432		$	144,353		$	3,079			2.1	%
Gross profit as a % of revenue
Customer pay		55.4	%		55.4	%		0			bps
Warranty		54.2	%		54.0	%		20			bps
Wholesale parts		16.8	%		18.8	%		(200	)		bps
Internal, sublet and other		48.7	%		49.6	%		(90	)		bps
Total		47.6	%		48.7	%		(110	)		bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Finance, Insurance and Other, Net (“F&I”)

	First Quarter Ended March 31,				Better / (Worse)
	2014		2013		Change		% Change
	(In thousands, except per unit data)
Reported:
Revenue	$	69,581	$	65,494	$	4,087		6.2	%
Gross profit per retail unit (excludes fleet)	$	1,206	$	1,148	$	58		5.1	%
	First Quarter Ended March 31,				Better / (Worse)
	2014		2013		Change		% Change
	(In thousands, except per unit data)
Same Store:
Revenue	$	68,408	$	65,507	$	2,901		4.4	%
Gross profit per retail unit (excludes fleet)	$	1,203	$	1,148	$	55		4.8	%

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Selling, General and Administrative (“SG&A”) Expenses

	First Quarter Ended March 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands)
Compensation	$	157,154		$	148,580		$	(8,574	)		(5.8	%)
Advertising		14,119			13,431			(688	)		(5.1	%)
Rent		18,535			19,022			487			2.6	%
Other		74,165			64,791			(9,374	)		(14.5	%)
Total	$	263,973		$	245,824		$	(18,149	)		(7.4	%)
SG&A expenses as a % of gross profit
Compensation		47.8	%		47.5	%		(30	)		bps
Advertising		4.3	%		4.3	%		0			bps
Rent		5.6	%		6.1	%		50			bps
Other		22.5	%		20.6	%		(190	)		bps
Total		80.2	%		78.5	%		(170	)		bps

EX-99.2

Exhibit 99.2

Q1 2014 EARNINGS REVIEW

April 22, 2014

2

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, anticipated 2014

industry new vehicle sales volume, the implementation of growth and operating strategies, including

acquisitions of dealerships and properties, the development of open points and stand-alone pre-owned

stores, the return of capital to shareholders , anticipated future success and impacts from the

implementation of our strategic initiatives and earnings per share expectations.

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, (d) new and pre-owned vehicle sales volume, and (e)

earnings expectations for the year ended December 31, 2014. 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, 2013.

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.

CONTENT

STRATEGIC FOCUS

QUARTER IN REVIEW

FINANCIAL RESULTS

OPERATIONS RECAP

SUMMARY AND OUTLOOK

3

4

STRATEGIC FOCUS

1. Growth

Grow The Base Business

Once Sonic One Experience

Acquisitions & Open Points

Pre-Owned Specialty Stores

2. Own Our Properties

3. Return Capital to Shareholders

STRATEGIC FOCUS

ONE-SONIC ONE-EXPERIENCE

5

Goals

1 Associate, 1 Price, 1 Hour

Improve Transparency; Increase Trust

Operational Efficiencies

Pilot Store in July 2014

18 Month Implementation

Result—Increase Market Share and Customer Retention

STRATEGIC FOCUS

PRE-OWNED STORES

6

Break Ground Hiring & Training

Marketing & Advertising

Opening

Q1 Q2 Q3 Q4

7

Cap Rates on Leased Properties Range from 8% -10%

Mortgage Rates Range from 4-6%

Enable Easier Investment Decisions when Considering

Manufacturer Mandated Facility Modifications

Strengthens the Balance Sheet Over Time

STRATEGIC FOCUS

OWN OUR PROPERTIES

2007 2008 2010 2011 2012 2013 Proj. 2017

STRATEGIC FOCUS

RETURN CAPITAL TO SHAREHOLDERS

Unused authorization of approximately $ 124.1 million

Quarterly dividend of $0.025 per share

Shares

(in thousands)

Average Price /

Share $

(in millions)

Q1 2014

Activity

377 $22.21 $8.4

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Q1 2014 FINANCIAL

REVIEW

Q1 2014 RESULTS

B/(W) than Q1 2013

(amounts in millions, except per share data) Q1 2014 $ %

Revenue $ 2,136 $ 53 3%

Gross Profit $ 329 $ 16 5%

Operating Profit $ 51 ($ 4) (8%)

Interest & Other ($ 18) $ 1 5%

Continuing Ops:

Profit (after tax) $ 20 ($ 2) (8%)

Diluted EPS $ 0.38 ($ 0.03) (7%)

SG&A as % of Gross 80.2% (170 bps)

Discontinued Ops Profit/(Loss) (after tax) ($1 ) ($0)

10

EPS

B/(W) than Q1 2013

(amounts in millions) Q1 2014 $ %

Diluted EPS $ 0.38 ($ 0.03) (7.3%)

Weather $ 0.02 $ 0.02

Pre-Owned Initiative $ 0.02 $ 0.01

Adjusted EPS $ 0.42 $ 0.00 0.0%

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TOTAL GROSS

12

$ 329 M $ 313 M

SG&A TO GROSS

13

80.2% 78.5%

CAPITAL SPEND

(amounts in millions) Q1 2014

ESTIMATED

2014

Real Estate Acquisitions $ 3.3 $ 32.6

All Other Cap Ex 18.3 160.3

Subtotal $ 21.6 $ 192.9

Less: Mortgage Funding (40.4) (40.4)

Total Cash Used – Cap Ex ($ 18.8) $ 152.5

Note – Spending excludes the effect of franchise acquisitions.

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LIQUIDITY

Q1 2014 Q4 2013

Cash $2.1 $3.0

Revolver Availability 117.8 126.0

Used floor plan availability 60.3 27.1

Floor plan deposit balance 75.0 65.0

Total $255.2 $221.1

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DEBT COVENANTS

Covenant

Actual Q1

2014

Liquidity Ratio >= 1.05 1.20

Fixed Charge Coverage Ratio >= 1.20 1.89

Total Lease Adjusted Leverage

Ratio

<= 5.50 4.08

Compliant with all Covenants

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OPERATIONS

REVIEW

NEW VEHICLE RETAIL

Q1 2014 Q1 2013 B/(W)

Volume 30,029 30,590 (1.8%)

Selling Price $ 37,041 $ 35,996 2.9%

Gross Margin % 5.9% 5.9% 0 bps

GPU $ 2,191 $ 2,132 $ 58

Gross Profit $ 66 million $ 65 million 0.8%

SAAR (includes fleet) 15.6 million 15.3 million 2.0%

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USED VEHICLE RETAIL

Q1 2014 Q1 2013 B/(W)

Revenue $560 million $526 million 6.4%

Retail Volume 27,657 26,469 4.5%

Used Retail GPU $ 1,471 $ 1,437 $ 35

Used Related Retail Gross* $ 90 million $ 83 million $ 7 million

Used to New 0.92 : 1 0.87 : 1 0.05

Vehicles / store / month 90 88 2

* - Includes front-end gross plus F&I related gross and fixed

operations related gross

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FIXED OPS

Q1 2014 B/(W) than 2013

(amounts in millions) 2014 $ %

Revenue $ 319 $ 22 7.5%

Gross Profit $ 152 $ 8 5.5%

QTD YOY Gross Profit Change Breakdown:

• Customer Pay Up 5.2%

• Whsl. Parts Up 7.1%

• Internal & Sublet Up 6.8%

• Warranty Up 5.6%

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SUMMARY

Business environment continues to be favorable to

retail automotive

Posted all-time record pre-owned sales volumes

producing record Q1 pre-owned gross profits

Fixed operations continues to benefit from 0-5 year

units in operation increasing

Expect market share gains and customer retention from

One-Sonic One-Experience once the entire

complement of the shopping experience is in place

On track to open our Denver market pre-owned

operations in Q4

Re-affirm 2014 continued ops EPS guidance of $1.95

to $2.05 net of pre-owned specialty retail operations

EPS of ($0.14).

SUMMARY

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EX-99.3

Exhibit 99.3

FOR IMMEDIATE RELEASE

SONIC AUTOMOTIVE, INC. DECLARES QUARTERLY CASH DIVIDEND

CHARLOTTE, N.C. – April 22, 2014 – 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 stockholders of record on June 13, 2014. The dividend will be payable on July 15, 2014.

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, 2013. The Company does not undertake any obligation to update forward-looking information.

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Contact:	Heath Byrd, Chief Financial Officer (704) 566-2400
	C.G. Saffer, Vice President and Chief Accounting Officer (704) 566-2439