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): October 21, 2014

SONIC AUTOMOTIVE, INC.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction

of incorporation)

1-13395	56-2010790
(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

Not Applicable

(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 October 21, 2014, Sonic Automotive, Inc. (the “Company”) issued a press release announcing its financial results for its fiscal third quarter ended September 30, 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 7.01. Regulation FD Disclosure.

On October 21, 2014, the Company 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 October 21, 2014, reporting Sonic Automotive, Inc.’s financial results for the fiscal third quarter ended September 30, 2014

99.2 Earnings call presentation materials

99.3 Press release of Sonic Automotive, Inc., dated October 21, 2014, reporting quarterly cash dividend

The information in this Form 8-K, including the exhibits attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

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.
Date: October 21, 2014	By:	/s/ Stephen K. Coss
		Stephen K. Coss
		Senior Vice President and General Counsel

INDEX TO EXHIBITS

Exhibit No.	Description
99.1	Press release of Sonic Automotive, Inc., dated October 21, 2014, reporting Sonic Automotive, Inc.’s financial results for the fiscal third quarter ended September 30, 2014
99.2	Earnings call presentation materials
99.3	Press release of Sonic Automotive, Inc., dated October 21, 2014, reporting quarterly cash dividend

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Sonic Automotive, Inc. Reports All-Time Record

New Retail Unit Sales and Q3 Total Gross Profit

CHARLOTTE, N.C. – October 21, 2014 – Sonic Automotive, Inc. (NYSE: SAH), one of the nation’s largest automotive retailers, today reported net income from continuing operations for the third quarter of 2014 of $24.6 million, or $0.47 per fully diluted share. Net income from continuing operations for the third quarter of 2013 was $24.7 million, or $0.46 per fully diluted share. Results for the third quarter of 2014 include a net pre-tax gain of approximately $0.8 million, or $0.01 per diluted share, related to a gain on disposal of franchises, partially offset by severe storm damage and impairment charges.

Results for the third quarter of 2014 include pre-tax expenses of approximately $3.1 million, or $0.04 per diluted share, and $3.6 million, or $0.05 per diluted share, related to the Company’s One Sonic-One Experience and EchoPark^® initiatives, respectively. Results related to these initiatives for the third quarter of 2013 include pre-tax expenses of approximately $1.5 million, or $0.02 per diluted share, for One Sonic-One Experience, and $1.7 million, or $0.02 per diluted share, related to EchoPark^®.

Q3 2014 Highlights:

• All-time record new retail unit sales of 36,301 units, up 6.5% over the prior year quarter

• New retail revenue up $93.1 million, or 7.6%, over the prior year quarter

• Pre-owned revenue up $23.7 million, or 4.2%, over the prior year quarter

• All-time record pre-owned gross profit of $41.2 million, an increase of 5.8% over the prior year quarter

• Pre-owned unit sales per store per month were 90 units for Q3 2014

• Q3 record fixed operations gross profit in 2014 of $155.3 million, up $6.1 million, or 4.1%, over the prior year quarter

• Total gross profit in Q3 2014 was also a third quarter record of $341.5 million, up $15.4 million, or 4.7%, over the prior year quarter

B. Scott Smith, the Company’s President, noted, “Our team worked very hard during the third quarter and it definitely paid off. We were able to deliver record-breaking results while still driving forward with our EchoPark^® and One Sonic-One Experience initiatives. Initial results from our One Sonic-One Experience test store in Charlotte met our expectations and we plan to continue the rollout of this initiative to the entire Charlotte market in the fourth quarter. The fourth quarter also involves our grand opening of EchoPark^® in Denver which we believe, together with our One Sonic-One Experience initiative, will transform the retail automotive buying experience. In addition, during the quarter, we repurchased approximately 1.2 million Class A common shares in open market transactions, reinforcing our commitment to return capital to shareholders. At the end of the third quarter, we had approximately $93 million of remaining share repurchase authorization.”

Jeff Dyke, Sonic’s EVP of Operations, stated, “Our strategy to manage the combination of our revenue streams in order to maximize overall gross profit dollars worked well during the quarter.

We drove volume in new retail units that in turn contributed incremental fixed operations and F&I gross profit dollars. The result yielded overall gross profit of $341.5 million, a third quarter record for our Company. We are excited about how this strategy dovetails nicely into our One Sonic-One Experience initiative. At our test store in Charlotte, we increased our market share from approximately 13.1% to 20.8% during the rollout period. We have utilized our inventory and pricing models to remain competitive and increase market share and store profitability. The customer feedback we’ve received has also been tremendous, further validating our assertion that we are fulfilling a customer need that currently is not met in our space.”

Third Quarter Earnings Conference Call

Senior management will host a conference call today at 11:00 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: 76537423

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: 76537423

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 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)

This release contains certain non-GAAP financial measures (the “Adjusted” columns) as defined under SEC rules, such as, but not limited to, adjusted income from continuing operations and related earnings per share data. The Company has reconciled these measures to the most directly comparable GAAP measures (the “Reported” columns) 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.

	Third Quarter Ended September 30, 2014									Third Quarter Ended September 30, 2013
	Reported			Adjustments			Adjusted			Reported			Adjustments		Adjusted
	(In thousands, except per share and unit data)
Revenues:
New retail vehicles	$	1,312,592		$	—		$	1,312,592		$	1,219,525		$	—	$	1,219,525
Fleet vehicles		15,245			—			15,245			41,745			—		41,745
Total new vehicles		1,327,837			—			1,327,837			1,261,270			—		1,261,270
Used vehicles		583,570			—			583,570			559,848			—		559,848
Wholesale vehicles		41,433			—			41,433			42,731			—		42,731
Total vehicles		1,952,840			—			1,952,840			1,863,849			—		1,863,849
Parts, service and collision repair		325,740			—			325,740			309,600			—		309,600
Finance, insurance and other, net		77,024			—			77,024			68,747			—		68,747
Total revenues		2,355,604			—			2,355,604			2,242,196			—		2,242,196
Gross profit		341,489			—			341,489			326,081			—		326,081
Selling, general and administrative expenses		(270,144	)		(1,044	)(1)		(271,188	)		(254,564	)		—		(254,564	)
Impairment charges		(208	)		207	(2)		(1	)		(18	)		—		(18	)
Depreciation and amortization		(14,235	)		—			(14,235	)		(13,744	)		—		(13,744	)
Operating income (loss)		56,902			(837	)		56,065			57,755			—		57,755
Other income (expense):
Interest expense, floor plan		(4,406	)		—			(4,406	)		(5,463	)		—		(5,463	)
Interest expense, other, net		(12,893	)		—			(12,893	)		(13,553	)		—		(13,553	)
Other income (expense), net		(1	)		—			(1	)		29			—		29
Total other income (expense)		(17,300	)		—			(17,300	)		(18,987	)		—		(18,987	)
Income (loss) from continuing operations before taxes		39,602			(837	)		38,765			38,768			—		38,768
Provision for income taxes - benefit (expense)		(15,045	)		327			(14,718	)		(14,066	)		—		(14,066	)
Income (loss) from continuing operations		24,557			(510	)		24,047			24,702			—		24,702
Income (loss) from discontinued operations		155			(845	)(3)		(690	)		(1,375	)		—		(1,375	)
Net income (loss)	$	24,712		$	(1,355	)	$	23,357		$	23,327		$	—	$	23,327
Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations	$	0.47		$	(0.01	)	$	0.46		$	0.46		$	—	$	0.46
Earnings (loss) per share from discontinued operations		—			(0.02	)		(0.02	)		(0.02	)		—		(0.02	)
Earnings (loss) per common share	$	0.47		$	(0.03	)	$	0.44		$	0.44		$	—	$	0.44
Weighted average common shares outstanding		52,553						52,553			52,918					52,918
Gross Margin Data (Continuing Operations):
New retail vehicles		5.3	%					5.3	%		5.9	%				5.9	%
Fleet vehicles		0.6	%					0.6	%		2.5	%				2.5	%
Total new vehicles		5.2	%					5.2	%		5.7	%				5.7	%
Used vehicles		7.1	%					7.1	%		7.0	%				7.0	%
Wholesale vehicles		(2.6	%)					(2.6	%)		(7.5	%)				(7.5	%)
Parts, service and collision repair		47.7	%					47.7	%		48.2	%				48.2	%
Finance, insurance and other		100.0	%					100.0	%		100.0	%				100.0	%
Overall gross margin		14.5	%					14.5	%		14.5	%				14.5	%
SG&A Expenses (Continuing Operations):
Compensation (4)	$	163,230								$	151,683
Advertising		14,045									14,132
Rent		18,145									18,901
Other (5)		74,724									69,848
Total SG&A expenses	$	270,144		$	1,044		$	271,188		$	254,564		$	—	$	254,564
SG&A expenses as % of gross profit		79.1	%					79.4	%		78.1	%				78.1	%
Operating Margin %		2.4	%					2.4	%		2.6	%				2.6	%
Unit Data (Continuing Operations):
New retail units		36,301									34,087
Fleet units		473									1,451
Total new units		36,774									35,538
Used units		27,536									27,632
Wholesale units		7,916									7,641

(1) Represents gain on disposal of dealerships, offset partially by severe storm damage charges.

(2) Represents property and equipment impairment charges.

(3) Represents lease exit adjustments, net of tax.

(4) Included in SG&A Compensation expense are amounts attributable to the Echopark® initiative of $1.9 million and $0.6 million in the third quarter of 2014 and 2013, respectively.

(5) Included in SG&A Other expense are amounts attributable to the Echopark® initiative of $1.7 million and $1.1 million in the third quarter of 2014 and 2013, respectively.

Sonic Automotive, Inc.

Results of Operations (Unaudited)

	Nine Months Ended September 30, 2014									Nine Months Ended September 30, 2013
	Reported			Adjustments			Adjusted			Reported			Adjustments			Adjusted
	(In thousands, except per share and unit data)
Revenues:
New retail vehicles	$	3,708,114		$	—		$	3,708,114		$	3,520,343		$	—		$	3,520,343
Fleet vehicles		65,120			—			65,120			131,143			—			131,143
Total new vehicles		3,773,234			—			3,773,234			3,651,486			—			3,651,486
Used vehicles		1,747,254			—			1,747,254			1,625,006			—			1,625,006
Wholesale vehicles		127,797			—			127,797			134,556			—			134,556
Total vehicles		5,648,285			—			5,648,285			5,411,048			—			5,411,048
Parts, service and collision repair		973,646			—			973,646			913,290			—			913,290
Finance, insurance and other, net		223,340			—			223,340			203,461			—			203,461
Total revenues		6,845,271			—			6,845,271			6,527,799			—			6,527,799
Gross profit		1,017,436			—			1,017,436			962,907			—			962,907
Selling, general and administrative expenses		(803,031	)		(6,954	)(1)		(809,985	)		(748,479	)		—			(748,479	)
Impairment charges		(215	)		207	(2)		(8	)		(69	)		—			(69	)
Depreciation and amortization		(43,047	)		—			(43,047	)		(39,020	)		—			(39,020	)
Operating income (loss)		171,143			(6,747	)		164,396			175,339			—			175,339
Other income (expense):
Interest expense, floor plan		(13,941	)		—			(13,941	)		(16,267	)		—			(16,267	)
Interest expense, other, net		(40,576	)		—			(40,576	)		(42,302	)		788	(4)		(41,514	)
Other income (expense), net		98			—			98			(28,143	)		28,235	(5)		92
Total other income (expense)		(54,419	)		—			(54,419	)		(86,712	)		29,023			(57,689	)
Income (loss) from continuing operations before taxes		116,724			(6,747	)		109,977			88,627			29,023			117,650
Provision for income taxes - benefit (expense)		(45,122	)		2,631			(42,491	)		(33,510	)		(11,320	)		(44,830	)
Income (loss) from continuing operations		71,602			(4,116	)		67,486			55,117			17,703			72,820
Income (loss) from discontinued operations		(511	)		(845	)(3)		(1,356	)		(1,582	)		—			(1,582	)
Net income (loss)	$	71,091		$	(4,961	)	$	66,130		$	53,535		$	17,703		$	71,238
Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations	$	1.35		$	(0.08	)	$	1.27		$	1.03		$	0.34		$	1.37
Earnings (loss) per share from discontinued operations		(0.01	)		(0.01	)		(0.02	)		(0.03	)		—			(0.03	)
Earnings (loss) per common share	$	1.34		$	(0.09	)	$	1.25		$	1.00		$	0.34		$	1.34
Weighted average common shares outstanding		52,808						52,808			52,930						52,930
Gross Margin Data (Continuing Operations):
New retail vehicles		5.6	%					5.6	%		5.8	%					5.8	%
Fleet vehicles		2.1	%					2.1	%		2.7	%					2.7	%
Total new vehicles		5.6	%					5.6	%		5.7	%					5.7	%
Used vehicles		6.8	%					6.8	%		7.1	%					7.1	%
Wholesale vehicles		(2.0	%)					(2.0	%)		(4.7	%)					(4.7	%)
Parts, service and collision repair		48.0	%					48.0	%		48.7	%					48.7	%
Finance, insurance and other		100.0	%					100.0	%		100.0	%					100.0	%
Overall gross margin		14.9	%					14.9	%		14.8	%					14.8	%
SG&A Expenses (Continuing Operations):
Compensation (6)	$	483,493								$	449,791
Advertising		42,027									41,282
Rent		55,324									56,344
Other (7)		222,187									201,062
Total SG&A expenses	$	803,031		$	6,954		$	809,985		$	748,479		$	—		$	748,479
SG&A expenses as % of gross profit		78.9	%					79.6	%		77.7	%					77.7	%
Operating Margin %		2.5	%					2.4	%		2.7	%					2.7	%
Unit Data (Continuing Operations):
New retail units		101,177									98,362
Fleet units		2,133									4,661
Total new units		103,310									103,023
Used units		83,707									80,700
Wholesale units		23,034									23,291

(1) Represents gain on disposal of dealerships, offset partially by severe storm damage charges and legal expenses.

(2) Represents property and equipment impairment charges.

(3) Represents lease exit adjustments, net of tax.

(4) Represents double-carry interest on 9.0% Notes.

(5) Represents loss on extinguishment of 9.0% Notes.

(6) Included in SG&A Compensation expense are amounts attributable to the Echopark® initiative of $4.6 million and $1.7 million in the nine months ended September 30, 2014 and 2013, respectively.

(7) Included in SG&A Other expense are amounts attributable to the Echopark® initiative of $4.0 million and $1.6 million in the nine months ended September 30, 2014 and 2013, respectively.

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Per Share Data

	Third Quarter Ended September 30, 2014
			Income (Loss)						Income (Loss)
			From Continuing						From Discontinued
			Operations						Average						Net Income (Loss)
	Weighted					Per						Per						Per
	Average					Share						Share						Share
	Shares		Amount			Amount			Amount			Amount			Amount			Amount
	(In thousands, except per share amounts)
Reported:
Earnings (loss) and shares		52,070	$	24,557					$	155					$	24,712
Effect of participating securities:
Non-vested restricted stock and stock units				(79	)					—						(79	)
Basic earnings (loss) and shares		52,070	$	24,478		$	0.47		$	155		$	—		$	24,633		$	0.47
Effect of dilutive securities:
Stock compensation plans		483
Diluted earnings (loss) and shares		52,553	$	24,478		$	0.47		$	155		$	—		$	24,633		$	0.47
Adjustments (net of tax):
Severe storm damage			$	1,317		$	0.03		$	—		$	—		$	1,317		$	0.03
Gain on disposal of franchises				(1,953	)		(0.04	)		—			—			(1,953	)		(0.04	)
Impairment charges				126			—			—			—			126			—
Lease exit adjustments				—			—			(845	)		(0.02	)		(845	)		(0.02	)
Total adjustments			$	(510	)	$	(0.01	)	$	(845	)	$	(0.02	)	$	(1,355	)	$	(0.03	)
Adjusted:
Diluted earnings (loss) per share (1)						$	0.46					$	(0.02	)				$	0.44

(1) Expenses attributable to the Echopark® initiative were $0.05 per fully diluted share in the third quarter of 2014.

	Third Quarter Ended September 30, 2013
			Income (Loss)					Income (Loss)
			From Continuing					From Discontinued
			Operations					Operations						Net Income (Loss)
	Weighted					Per					Per						Per
	Average					Share					Share						Share
	Shares		Amount			Amount		Amount			Amount			Amount			Amount
	(In thousands, except per share amounts)
Reported:
Earnings (loss) and shares		52,553	$	24,702				$	(1,375	)				$	23,327
Effect of participating securities:
Non-vested restricted stock and stock units				(172	)				—						(172	)
Basic earnings (loss) and shares		52,553	$	24,530		$	0.47	$	(1,375	)	$	(0.03	)	$	23,155		$	0.44
Effect of dilutive securities:
Stock compensation plans		365
Diluted earnings (loss) and shares		52,918	$	24,530		$	0.46	$	(1,375	)	$	(0.02	)	$	23,155		$	0.44
Adjusted:
Diluted earnings (loss) per share (2)						$	0.46				$	(0.02	)				$	0.44

(2) Expenses attributable to the Echopark® initiative were $0.02 per fully diluted share in the third quarter of 2013.

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Per Share Data

	Nine Months Ended September 30, 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		52,333	$	71,602					$	(511	)				$	71,091
Effect of participating securities:
Non-vested restricted stock and stock units				(229	)					—						(229	)
Basic earnings (loss) and shares		52,333	$	71,373		$	1.36		$	(511	)	$	(0.01	)	$	70,862		$	1.35
Effect of dilutive securities:
Stock compensation plans		475
Diluted earnings (loss) and shares		52,808	$	71,373		$	1.35		$	(511	)	$	(0.01	)	$	70,862		$	1.34
Adjustments (net of tax):
Severe storm damage and legal			$	2,157		$	0.04		$	—		$	—		$	2,157		$	0.04
Gain on disposal of franchises				(6,399	)		(0.12	)		—			—			(6,399	)		(0.12	)
Impairment charges				126			—			—			—			126			—
Lease exit adjustments				—			—			(845	)		(0.01	)		(845	)		(0.01	)
Total adjustments			$	(4,116	)	$	(0.08	)	$	(845	)	$	(0.01	)	$	(4,961	)	$	(0.09	)
Adjusted:
Diluted earnings (loss) per share (3)						$	1.27					$	(0.02	)				$	1.25

(3) Expenses attributable to the Echopark® initiative were $0.10 per fully diluted share in the nine months ended September 30, 2014.

	Nine Months Ended September 30, 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		52,578	$	55,117				$	(1,582	)				$	53,535
Effect of participating securities:
Non-vested restricted stock and stock units				(393	)				—						(393	)
Basic earnings (loss) and shares		52,578	$	54,724		$	1.04	$	(1,582	)	$	(0.03	)	$	53,142		$	1.01
Effect of dilutive securities:
Stock compensation plans		352
Diluted earnings (loss) and shares		52,930	$	54,724		$	1.03	$	(1,582	)	$	(0.03	)	$	53,142		$	1.00
Adjustments (net of tax):
Double-carry interest			$	480		$	0.01	$	—		$	—		$	480		$	0.01
Debt extinguishment charges				17,223			0.33		—			—			17,223			0.33
Total adjustments			$	17,703		$	0.34	$	—		$	—		$	17,703		$	0.34
Adjusted:
Diluted earnings (loss) per share (4)						$	1.37				$	(0.03	)				$	1.34

(4) Expenses attributable to the Echopark® initiative were $0.04 per fully diluted share in the nine months ended September 30, 2013.

Sonic Automotive, Inc.

Results of Operations (Unaudited)

New Vehicles

	Third Quarter Ended September 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	1,327,837		$	1,261,270		$	66,567			5.3	%
Gross profit	$	69,026		$	72,408		$	(3,382	)		(4.7	%)
Unit sales		36,774			35,538			1,236			3.5	%
Revenue per unit	$	36,108		$	35,491		$	617			1.7	%
Gross profit per unit	$	1,877		$	2,037		$	(160	)		(7.9	%)
Gross profit as a % of revenue		5.2	%		5.7	%		(50	)		bps

	Nine Months Ended September 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	3,773,234		$	3,651,486		$	121,748			3.3	%
Gross profit	$	209,892		$	206,668		$	3,224			1.6	%
Unit sales		103,310			103,023			287			0.3	%
Revenue per unit	$	36,523		$	35,443		$	1,080			3.0	%
Gross profit per unit	$	2,032		$	2,006		$	26			1.3	%
Gross profit as a % of revenue		5.6	%		5.7	%		(10	)		bps

	Third Quarter Ended September 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	1,310,138		$	1,235,089		$	75,049			6.1	%
Gross profit	$	67,766		$	70,602		$	(2,836	)		(4.0	%)
Unit sales		36,443			34,992			1,451			4.1	%
Revenue per unit	$	35,950		$	35,296		$	654			1.9	%
Gross profit per unit	$	1,860		$	2,018		$	(158	)		(7.8	%)
Gross profit as a % of revenue		5.2	%		5.7	%		(50	)		bps

	Nine Months Ended September 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	3,673,608		$	3,586,365		$	87,243			2.4	%
Gross profit	$	203,132		$	202,181		$	951			0.5	%
Unit sales		101,392			101,663			(271	)		(0.3	%)
Revenue per unit	$	36,232		$	35,277		$	955			2.7	%
Gross profit per unit	$	2,003		$	1,989		$	14			0.7	%
Gross profit as a % of revenue		5.5	%		5.6	%		(10	)		bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Used Vehicles

	Third Quarter Ended September 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	583,570		$	559,848		$	23,722			4.2	%
Gross profit	$	41,245		$	38,976		$	2,269			5.8	%
Unit sales		27,536			27,632			(96	)		(0.3	%)
Revenue per unit	$	21,193		$	20,261		$	932			4.6	%
Gross profit per unit	$	1,498		$	1,411		$	87			6.2	%
Gross profit as a % of revenue		7.1	%		7.0	%		10			bps

	Nine Months Ended September 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	1,747,254		$	1,625,006		$	122,248			7.5	%
Gross profit	$	119,412		$	114,615		$	4,797			4.2	%
Unit sales		83,707			80,700			3,007			3.7	%
Revenue per unit	$	20,873		$	20,136		$	737			3.7	%
Gross profit per unit	$	1,427		$	1,420		$	7			0.5	%
Gross profit as a % of revenue		6.8	%		7.1	%		(30	)		bps

	Third Quarter Ended September 30,						Better / (Worse)
	2014			2013			Change		% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	569,226		$	544,018		$	25,208		4.6	%
Gross profit	$	40,617		$	38,074		$	2,543		6.7	%
Unit sales		27,000			26,953			47		0.2	%
Revenue per unit	$	21,082		$	20,184		$	898		4.4	%
Gross profit per unit	$	1,504		$	1,413		$	91		6.4	%
Gross profit as a % of revenue		7.1	%		7.0	%		10		bps

	Nine Months Ended September 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	1,677,794		$	1,580,336		$	97,458			6.2	%
Gross profit	$	115,743		$	111,673		$	4,070			3.6	%
Unit sales		80,928			78,785			2,143			2.7	%
Revenue per unit	$	20,732		$	20,059		$	673			3.4	%
Gross profit per unit	$	1,430		$	1,417		$	13			0.9	%
Gross profit as a % of revenue		6.9	%		7.1	%		(20	)		bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Wholesale Vehicles

	Third Quarter Ended September 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	41,433		$	42,731		$	(1,298	)		(3.0	%)
Gross profit (loss)	$	(1,086	)	$	(3,197	)	$	2,111			66.0	%
Unit sales		7,916			7,641			275			3.6	%
Revenue per unit	$	5,234		$	5,592		$	(358	)		(6.4	%)
Gross profit (loss) per unit	$	(137	)	$	(418	)	$	281			67.2	%
Gross profit (loss) as a % of revenue		(2.6	%)		(7.5	%)		490			bps

	Nine Months Ended September 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	127,797		$	134,556		$	(6,759	)		(5.0	%)
Gross profit (loss)	$	(2,493	)	$	(6,343	)	$	3,850			60.7	%
Unit sales		23,034			23,291			(257	)		(1.1	%)
Revenue per unit	$	5,548		$	5,777		$	(229	)		(4.0	%)
Gross profit (loss) per unit	$	(108	)	$	(272	)	$	164			60.3	%
Gross profit (loss) as a % of revenue		(2.0	%)		(4.7	%)		270			bps

	Third Quarter Ended September 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	40,894		$	42,141		$	(1,247	)		(3.0	%)
Gross profit (loss)	$	(1,043	)	$	(3,105	)	$	2,062			66.4	%
Unit sales		7,829			7,545			284			3.8	%
Revenue per unit	$	5,223		$	5,585		$	(362	)		(6.5	%)
Gross profit (loss) per unit	$	(133	)	$	(412	)	$	279			67.7	%
Gross profit (loss) as a % of revenue		(2.6	%)		(7.4	%)		480			bps

	Nine Months Ended September 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	123,962		$	132,528		$	(8,566	)		(6.5	%)
Gross profit (loss)	$	(2,262	)	$	(6,019	)	$	3,757			62.4	%
Unit sales		22,509			22,987			(478	)		(2.1	%)
Revenue per unit	$	5,507		$	5,765		$	(258	)		(4.5	%)
Gross profit (loss) per unit	$	(100	)	$	(262	)	$	162			61.8	%
Gross profit (loss) as a % of revenue		(1.8	%)		(4.5	%)		270			bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

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

	Third Quarter Ended September 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands)
Reported:
Revenue
Customer pay	$	141,458		$	137,106		$	4,352			3.2	%
Warranty		48,431			45,405			3,026			6.7	%
Wholesale parts		46,983			43,349			3,634			8.4	%
Internal, sublet and other		88,868			83,740			5,128			6.1	%
Total	$	325,740		$	309,600		$	16,140			5.2	%
Gross profit
Customer pay	$	77,546		$	75,203		$	2,343			3.1	%
Warranty		26,254			24,374			1,880			7.7	%
Wholesale parts		8,122			7,881			241			3.1	%
Internal, sublet and other		43,358			41,689			1,669			4.0	%
Total	$	155,280		$	149,147		$	6,133			4.1	%
Gross profit as a % of revenue
Customer pay		54.8	%		54.9	%		(10	)		bps
Warranty		54.2	%		53.7	%		50			bps
Wholesale parts		17.3	%		18.2	%		(90	)		bps
Internal, sublet and other		48.8	%		49.8	%		(100	)		bps
Total		47.7	%		48.2	%		(50	)		bps

	Nine Months Ended September 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands)
Reported:
Revenue
Customer pay	$	427,620		$	407,252		$	20,368			5.0	%
Warranty		142,072			137,489			4,583			3.3	%
Wholesale parts		142,071			124,870			17,201			13.8	%
Internal, sublet and other		261,883			243,679			18,204			7.5	%
Total	$	973,646		$	913,290		$	60,356			6.6	%
Gross profit
Customer pay	$	235,151		$	224,485		$	10,666			4.8	%
Warranty		77,163			74,657			2,506			3.4	%
Wholesale parts		24,590			23,158			1,432			6.2	%
Internal, sublet and other		130,381			122,206			8,175			6.7	%
Total	$	467,285		$	444,506		$	22,779			5.1	%
Gross profit as a % of revenue
Customer pay		55.0	%		55.1	%		(10	)		bps
Warranty		54.3	%		54.3	%		0			bps
Wholesale parts		17.3	%		18.5	%		(120	)		bps
Internal, sublet and other		49.8	%		50.2	%		(40	)		bps
Total		48.0	%		48.7	%		(70	)		bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

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

	Third Quarter Ended September 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands)
Same Store:
Revenue
Customer pay	$	137,639		$	133,451		$	4,188			3.1	%
Warranty		47,383			44,118			3,265			7.4	%
Wholesale parts		45,945			42,649			3,296			7.7	%
Internal, sublet and other		87,166			81,964			5,202			6.3	%
Total	$	318,133		$	302,182		$	15,951			5.3	%
Gross profit
Customer pay	$	75,546		$	73,255		$	2,291			3.1	%
Warranty		25,766			23,660			2,106			8.9	%
Wholesale parts		7,859			7,717			142			1.8	%
Internal, sublet and other		42,411			40,498			1,913			4.7	%
Total	$	151,582		$	145,130		$	6,452			4.4	%
Gross profit as a % of revenue
Customer pay		54.9	%		54.9	%		0			bps
Warranty		54.4	%		53.6	%		80			bps
Wholesale parts		17.1	%		18.1	%		(100	)		bps
Internal, sublet and other		48.7	%		49.4	%		(70	)		bps
Total		47.6	%		48.0	%		(40	)		bps

	Nine Months Ended September 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands)
Same Store:
Revenue
Customer pay	$	408,504		$	398,444		$	10,060			2.5	%
Warranty		136,337			133,952			2,385			1.8	%
Wholesale parts		137,461			123,360			14,101			11.4	%
Internal, sublet and other		253,720			238,881			14,839			6.2	%
Total	$	936,022		$	894,637		$	41,385			4.6	%
Gross profit
Customer pay	$	225,232		$	219,888		$	5,344			2.4	%
Warranty		74,190			73,048			1,142			1.6	%
Wholesale parts		23,343			22,808			535			2.3	%
Internal, sublet and other		125,740			119,252			6,488			5.4	%
Total	$	448,505		$	434,996		$	13,509			3.1	%
Gross profit as a % of revenue
Customer pay		55.1	%		55.2	%		(10	)		bps
Warranty		54.4	%		54.5	%		(10	)		bps
Wholesale parts		17.0	%		18.5	%		(150	)		bps
Internal, sublet and other		49.6	%		49.9	%		(30	)		bps
Total		47.9	%		48.6	%		(70	)		bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

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

	Third Quarter Ended September 30,				Better / (Worse)
	2014		2013		Change		% Change
	(In thousands, except per unit data)
Reported:
Revenue	$	77,024	$	68,747	$	8,277		12.0	%
Gross profit per retail unit (excludes fleet)	$	1,207	$	1,114	$	93		8.3	%

	Nine Months Ended September 30,				Better / (Worse)
	2014		2013		Change		% Change
	(In thousands, except per unit data)
Reported:
Revenue	$	223,340	$	203,461	$	19,879		9.8	%
Gross profit per retail unit (excludes fleet)	$	1,208	$	1,136	$	72		6.3	%

	Third Quarter Ended September 30,				Better / (Worse)
	2014		2013		Change		% Change
	(In thousands, except per unit data)
Same Store:
Revenue	$	76,386	$	67,611	$	8,775		13.0	%
Gross profit per retail unit (excludes fleet)	$	1,213	$	1,118	$	95		8.5	%

	Nine Months Ended September 30,				Better / (Worse)
	2014		2013		Change		% Change
	(In thousands, except per unit data)
Same Store:
Revenue	$	218,160	$	200,589	$	17,571		8.8	%
Gross profit per retail unit (excludes fleet)	$	1,211	$	1,141	$	70		6.1	%

Sonic Automotive, Inc.

Results of Operations (Unaudited)

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

	Third Quarter Ended September 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands)
Reported:
Compensation	$	163,230		$	151,683		$	(11,547	)		(7.6	%)
Advertising		14,045			14,132			87			0.6	%
Rent		18,145			18,901			756			4.0	%
Other		74,724			69,848			(4,876	)		(7.0	%)
Total	$	270,144		$	254,564		$	(15,580	)		(6.1	%)
SG&A expenses as a % of gross profit
Compensation		47.8	%		46.5	%		(130	)		bps
Advertising		4.1	%		4.3	%		20			bps
Rent		5.3	%		5.8	%		50			bps
Other		21.9	%		21.5	%		(40	)		bps
Total		79.1	%		78.1	%		(100	)		bps

	Nine Months Ended September 30,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands)
Reported:
Compensation	$	483,493		$	449,791		$	(33,702	)		(7.5	%)
Advertising		42,027			41,282			(745	)		(1.8	%)
Rent		55,324			56,344			1,020			1.8	%
Other		222,187			201,062			(21,125	)		(10.5	%)
Total	$	803,031		$	748,479		$	(54,552	)		(7.3	%)
SG&A expenses as a % of gross profit
Compensation		47.5	%		46.7	%		(80	)		bps
Advertising		4.1	%		4.3	%		20			bps
Rent		5.4	%		5.9	%		50			bps
Other		21.9	%		20.8	%		(110	)		bps
Total		78.9	%		77.7	%		(120	)		bps

EX-99.2

Q3 2014 EARNINGS REVIEW

October 21, 2014

Exhibit 99.2

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

•

One Sonic-One Experience

•

EchoPark

®

•

Acquisitions & Open Points

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 Underway

•

24 Month Implementation

Result -

Increase Market Share and Customer Retention

6

STRATEGIC FOCUS

ONE SONIC-ONE EXPERIENCE

•

Speed Up the Transaction

–

No Negotiation

•

Reduce Paperwork

–

Electronic Signature

•

One Associate One Guest

–

Technology Driven

–

Training Supported

•

Reduce Headcount Through

Attrition

–

Creates Significant Cost

Savings

•

Create Trust & Transparency

–

Increased CSI, ASI and

Market Share

•

Brand the Retail Stores

–

Increased Market Share &

Margins

•

Creates More of a Specialty

Retail Experience

–

Apple, Starbucks, etc.

7

STRATEGIC FOCUS

EchoPark

®

Hub Opens November 3

2 Neighborhood Stores

Open Late Nov & Dec

8

STRATEGIC FOCUS

ACQUISITIONS & OPEN POINTS

•

Purchased Two Franchises, Jaguar (Q1) &

Nissan (Q3) during 2014

Estimated Annual Revenues of $55 million

•

Open Points

Nissan in TN Market

Exploring Opportunities in Other Markets

9

STRATEGIC FOCUS

OWN OUR PROPERTIES

2007

2008

2010

2011

2012

2013

Proj. -

2017

0%

12%

14%

18%

23%

31%

45%

10

STRATEGIC FOCUS

RETURN CAPITAL TO SHAREHOLDERS

•

Unused Authorization of Approximately $ 93 million

•

Quarterly Dividend of $0.025 Per Share

Shares

(in thousands)

Average Price /

Share

$

(in millions)

2014 Activity

1,668

$ 23.70

$ 39.5

Q3 2014 FINANCIAL

REVIEW

Q3 2014 ADJUSTED RESULTS

12

(1) See Appendix for reconciliation to reported GAAP amounts.

B/(W) than Q3 2013

(amounts in millions, except per share data)

Q3 2014

$

%

Revenue

$ 2,356

$ 113

5%

Gross Profit

$ 341

$ 15

5%

Operating Profit

$ 56

($ 2)

(3%)

Interest & Other

($ 17)

$ 2

9%

Continuing Ops:

Profit (after tax)

$ 24

($ 1)

(3%)

Diluted EPS

$ 0.46

$ 0.00

0%

SG&A as % of Gross

79.4%

(130 bps)

Discontinued Ops Profit/(Loss)  (after tax)

($1)

$1

(1)

(1)

(1)

(1)

(1)

(1)

EPS ADJUSTMENTS

13

(1) See Appendix for reconciliation to reported GAAP amounts.

(amounts in millions, except per share date)

Q3 2014

Q3 2013

Pre

Tax

EPS

Pre

Tax

EPS

Unadjusted EPS

$ 0.47

$ 0.46

Storm

Damage

$ 2.2

$

0.03

$ 0.0

$ 0.00

Gain on Disposal

($3.2)

($

0.04)

$ 0.0

$ 0.00

Impairment

$0.2

$

0.00

$ 0.0

$ 0.00

Adjusted

EPS

(1)

$ 0.46

$

0.46

-

-

STRATEGIC INITIATIVE IMPACT ON

EPS

14

(amounts in millions, except per share date)

Q3 2014

Pre-Tax

EPS

Adjusted

(1)

$ 0.46

EchoPark®

$ 3.6

$ 0.05

One Sonic-One Experience

$ 3.1

$ 0.04

Centralization of Business Office

$ 0.7

$ 0.01

Excluding Effect of Strategic Initiatives

$ 0.56

(1) See Appendix for reconciliation to reported GAAP amounts.

TOTAL GROSS

15

$ 341 M

$ 326 M

$69

$72

$40

$36

$155

$149

$77

$69

New

Used

F&I

Fixed

Q3 2014

Q3 2013

SG&A TO GROSS

16

78.1%

79.4%

(1) See Appendix for reconciliation to reported GAAP amounts.

4.1%

4.3%

47.8%

46.5%

5.3%

5.8%

22.2%

21.5%

Advertising

Comp

Rent

Other

Q3

2014

Adjusted

(1)

Q3 2013

STRATEGIC INITIATIVE IMPACT ON

SG&A

17

(amounts in millions, except per share date)

Q3 2014

Pre-Tax

SG&A %

Adjusted

(1)

79.4%

EchoPark®

$ 3.6

1.1%

One Sonic-One Experience

$ 3.1

0.9%

Centralization of Business Office

$ 0.7

0.2%

Excluding Effect of Strategic Initiatives

77.2%

(1) See Appendix for reconciliation to reported GAAP amounts.

STRATEGIC INITIATIVE SPEND

18

(in millions)

Actual YTD Q3

2014

Estimated FY

2014

EchoPark®

$ 8.6

$ 12.0

One Sonic-One Experience

$ 6.6

$ 10.0

Centralization of Business Office

$ 1.0

$ 3.0

CAPITAL SPEND

(amounts in millions)

YTD Q3 2014

ESTIMATED

2014

Real Estate Acquisitions

$ 12.3

$ 39.6

All Other Cap Ex

77.7

143.4

Subtotal

$ 90.0

$ 183.0

Less: Mortgage Funding

(40.4)

(40.4)

Total Cash Used –

Cap Ex

$ 49.6

$ 142.6

Note –

Spending excludes the effect of  franchise acquisitions.

19

LIQUIDITY

20

(amounts in millions)

Q3 2014

Q4 2013

Cash

$ 1.7

$3.0

Revolver Availability

105.2

126.0

Used floor plan availability

46.6

27.1

Floor plan deposit balance

107.5

65.0

Total

$ 261.0

$221.1

DEBT COVENANTS

Covenant

Actual Q3

2014

Liquidity Ratio

>= 1.05

1.22

Fixed Charge Coverage Ratio

>= 1.20

1.74

Total Lease Adjusted Leverage

Ratio

<= 5.50

4.14

21

Compliant with all Covenants

OPERATIONS

REVIEW

NEW VEHICLE RETAIL

Same Store

Q3 2014

Q3 2013

B/(W)

Revenue

$ 1,295 million

$ 1,193 million

8.5%

Volume

35,970

33,541

7.2%

Selling Price

$ 35,999

$ 35,579

1.2%

Gross Margin %

5.2%

5.8%

(60 bps)

GPU

$ 1,881

$ 2,074

($ 193)

Gross Profit

$ 68 million

$ 70 million

(2.7%)

SAAR (includes fleet)

16.7 million

15.6 million

7.1%

23

USED VEHICLE RETAIL

Same Store

Q3 2014

Q3 2013

B/(W)

Revenue

$ 569 million

$ 544 million

4.6%

Retail Volume

27,000

26,953

0.2%

Used Retail GPU

$ 1,504

$ 1,413

$ 92

Used Related Retail Gross*

$ 86 million

$ 80 million

$ 6 million

Used to New

0.75 : 1

0.80 : 1

(0.05)

Vehicles / store / month

90

90

0

24

* -

Includes Front-End Gross Plus F&I Related Gross and Fixed

Operations Related Gross

FIXED OPS

SAME STORE

Q3 2014

B/(W) than Q3 2013

(amounts in millions)

2014

$

%

Revenue

$ 318

$ 16

5.3%

Gross Profit

$ 152

$ 6

4.4%

25

QTD YOY Gross Profit Change Breakdown:

•

Customer Pay Up 3.1%

•

Whsl. Parts Up 1.8%

•

Internal & Sublet Up 5.3%

•

Warranty Up 8.9%

26

STRATEGIC FOCUS

ONE SONIC-ONE EXPERIENCE

Units and 2014 Market Share %

13.1%

14.6%

18.0%

20.8%

June

July

August

September

153

177

209

124

148

181

271

226

2013 Units

2014 Units

SUMMARY

Posted All-Time Record Quarterly New Retail Unit

Sales and Q3 Total Gross Profit

One Sonic-One Experience Meets Initial Expectations –

Will Begin Roll-Out to Charlotte Market

Echopark

®

Opens in Q4 

Anticipate Significant Cap Exp Spending in Q4 Related

to Property Acquisitions and Construction

Share Repurchase Activity to Continue Based on

Market Conditions

SUMMARY

28

Appendix

30

NON-GAAP RECONCILIATIONS

31

NON-GAAP RECONCILIATIONS

32

EX-99.3

Exhibit 99.3

FOR IMMEDIATE RELEASE

SONIC AUTOMOTIVE, INC. DECLARES QUARTERLY CASH DIVIDEND

CHARLOTTE, N.C. – October 21, 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 December 15, 2014. The dividend will be payable on January 15, 2015.

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 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