8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 24, 2015

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 February 24, 2015, Sonic Automotive, Inc. (the “Company”) issued a press release announcing its financial results for its fiscal fourth quarter and fiscal year ended December 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 7.01. Regulation FD Disclosure.

On February 24, 2015, 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 February 24, 2015, reporting Sonic Automotive, Inc.’s financial results for the fiscal fourth quarter and fiscal year ended December 31, 2014

99.2 Earnings call presentation materials

99.3 Press release of Sonic Automotive, Inc., dated February 24, 2015, 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: February 24, 2015	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 February 24, 2015, reporting Sonic Automotive, Inc.’s financial results for the fiscal fourth quarter and fiscal year ended December 31, 2014
99.2	Earnings call presentation materials
99.3	Press release of Sonic Automotive, Inc., dated February 24, 2015, reporting quarterly cash dividend

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Sonic Automotive, Inc. Reports Record Results and Launch of EchoPark^® Automotive!

Adjusted Continuing Operations Quarterly EPS of $0.63

Fourth Quarter 2014 Results

• Record Q4 new retail units of 34,755, up 2.2%, over the prior year quarter

• Record Q4 pre-owned units and gross profit of 26,406 and $37.8 million, respectively

• Record Q4 fixed operations gross profit of $156.3 million, up 2.4% over the prior year quarter

• Record Q4 total gross profit of $348.5 million, up 2.9% over the prior year quarter

• EchoPark^® stores in Denver open for business

• One Sonic-One Experience launched in Charlotte

Full Year 2014 Results

• Retailed an annual record new retail and pre-owned units of 135,932 and 110,113, respectively

• Record annual pre-owned gross profit of $157.2 million

• Record annual fixed operations gross profit of $623.5 million

• Record annual total gross profit of $1.4 billion

• Near record pre-tax income from continuing operations of $161.7 million

CHARLOTTE, N.C. – February 24, 2015 – Sonic Automotive, Inc. (NYSE: SAH), one of the nation’s largest automotive retailers, today reported adjusted net income from continuing operations for the fourth quarter of 2014 of $32.5 million, or $0.63 per diluted share. Included in these adjusted amounts are pre-tax expenses of $7.1 million, or $0.08 per diluted share, related to the Company’s EchoPark^® initiative and $3.8 million, or $0.05 per diluted share, related to its One Sonic-One Experience initiative.

Adjusted net income from continuing operations for the fourth quarter of 2013 was $35.6 million, or $0.67 per diluted share. Included in these adjusted amounts are pre-tax expenses of $2.2 million, or $0.03 per diluted share, related to the Company’s EchoPark^® initiative and $2.1 million, or $0.02 per diluted share, related to its One Sonic-One Experience initiative.

On a GAAP basis, net income from continuing operations and related diluted earnings per share for the fourth quarter 2014 were $27.0 million and $0.52 per share, respectively, compared to $29.6 million and $0.55 per diluted share for the fourth quarter of 2013. See the accompanying tables for details of quarterly adjustments.

Sonic reported full year 2014 adjusted net income from continuing operations of $100.0 million, or $1.90 per diluted share, that includes expenses of $15.7 million, or $0.18 per diluted share, related to the Company’s EchoPark^® initiative and $10.4 million, or $0.12 per diluted share, related to its One Sonic-One Experience initiative.

For the full year of 2013, Sonic reported adjusted net income from continuing operations of $108.4 million, or $2.03 per diluted share that includes expenses of $5.5 million, or $0.07 per diluted share, related to EchoPark^® and $6.7 million, or $0.08 per diluted share, related its One Sonic-One Experience initiative.

On a GAAP basis, net income from continuing operations for full year of 2014 was $98.6 million, or $1.87 per diluted share, compared to full year 2013 results of $84.7 million, or $1.59 per diluted share. See the accompanying tables for details of annual adjustments.

Jeff Dyke, Sonic’s EVP of Operations, stated, “I could not be more pleased with our team’s performance in the fourth quarter and for the year. We started 2014 with a huge calendar including launching both EchoPark^® and One Sonic-One Experience all in the fourth quarter of 2014. The amount of preparation and effort that went into launching these critical programs was second to none and I want to personally thank everyone for the hard work and dedication it took to successfully bring both projects to life. We look forward to sharing our progress as the projects gain momentum. Despite the time and energy dedicated to the EchoPark^® and One Sonic-One Experience initiatives, our operations team was able to turn in a record breaking quarter and year. December was the biggest gross and profit month in our Company’s history for any year or store count!

We expect 2015 to be another great year as our team works diligently to deliver on our goals with EchoPark^® and One Sonic-One Experience. We are confident that as the year progresses we will be able to announce our second market for both EchoPark^® and One Sonic-One Experience.”

2015 Outlook

B. Scott Smith, the Company’s President, noted, “I am very pleased with the performance of our team in the fourth quarter, especially considering the various initiatives we have tasked the team with during the year. In addition to our internal initiatives, during the fourth quarter we purchased Cherry Creek Chevrolet and Land Rover of Roaring Fork, both located in the Denver, Colorado market. We have also been awarded Mercedes Benz and Audi add points during the year. The Mercedes Benz add point is located in McKinney, Texas and we believe it will be operational by the second quarter of 2016. The Audi add point is located in the Pensacola, Florida area and we expect opening this point in late 2016. The additions of these premium luxury brands will prove to augment our existing luxury brand portfolio. We are dedicated to our EchoPark^®, One Sonic–One Experience and growth through acquisitions initiatives and will continue to invest in these initiatives in 2015. We expect 2015 to continue to be favorable to dealers and anticipate new vehicle industry volume to be between 16.5 million and 17.0 million units. We project diluted earnings per share from continuing operations for 2015 to be between $1.85 and $1.95 per share. Excluding the effects of EchoPark on this range, adjusted diluted earnings per share from continuing operations from our historical franchised group of stores is expected to be between $2.01 and $2.11 per share. We will have additional comments on our 2015 outlook in our earnings call later today.”

Fourth 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: 74193723

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: 74193723

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 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 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.

	Fourth Quarter Ended December 31,						Year Ended December 31,
	2014			2013			2014			2013
	(In thousands, except per share and unit data)
Revenues:
New retail vehicles	$	1,337,896		$	1,299,444		$	5,046,010		$	4,819,787
Fleet vehicles		12,899			38,254			78,019			169,398
Total new vehicles		1,350,795			1,337,698			5,124,029			4,989,185
Used vehicles		562,993			551,028			2,310,247			2,176,034
Wholesale vehicles		38,361			40,772			166,158			175,328
Total vehicles		1,952,149			1,929,498			7,600,434			7,340,547
Parts, service and collision repair		322,924			316,888			1,296,570			1,230,178
Finance, insurance and other, net		76,755			68,983			300,095			272,443
Total revenues		2,351,828			2,315,369			9,197,099			8,843,168
Gross profit		348,464			338,700			1,365,900			1,301,607
Selling, general and administrative expenses		(264,402	)		(254,647	)		(1,067,433	)		(1,003,125	)
Impairment charges		(6,379	)		(9,803	)		(6,594	)		(9,872	)
Depreciation and amortization		(15,213	)		(14,986	)		(58,260	)		(54,007	)
Operating income (loss)		62,470			59,264			233,613			234,603
Other income (expense):
Interest expense, floor plan		(4,852	)		(5,688	)		(18,793	)		(21,954	)
Interest expense, other, net		(12,614	)		(13,183	)		(53,190	)		(55,485	)
Other income (expense), net		(2	)		1			97			(28,143	)
Total other income (expense)		(17,468	)		(18,870	)		(71,886	)		(105,582	)
Income (loss) from continuing operations before taxes		45,002			40,394			161,727			129,021
Provision for income taxes - benefit (expense)		(18,045	)		(10,832	)		(63,168	)		(44,343	)
Income (loss) from continuing operations		26,957			29,562			98,559			84,678
Income (loss) from discontinued operations		(831	)		(1,478	)		(1,342	)		(3,060	)
Net income (loss)	$	26,126		$	28,084		$	97,217		$	81,618
Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations	$	0.52		$	0.55		$	1.87		$	1.59
Earnings (loss) per share from discontinued operations		(0.02	)		(0.02	)		(0.03	)		(0.06	)
Earnings (loss) per common share	$	0.50		$	0.53		$	1.84		$	1.53
Weighted average common shares outstanding		51,834			52,974			52,563			52,941
Gross Margin Data (Continuing Operations):
New retail vehicles		5.9	%		6.3	%		5.7	%		5.9	%
Fleet vehicles		1.1	%		2.2	%		1.9	%		2.6	%
Total new vehicles		5.8	%		6.2	%		5.6	%		5.8	%
Used vehicles		6.7	%		6.5	%		6.8	%		6.9	%
Wholesale vehicles		(2.9	%)		(3.9	%)		(2.2	%)		(4.5	%)
Parts, service and collision repair		48.4	%		48.2	%		48.1	%		48.5	%
Finance, insurance and other		100.0	%		100.0	%		100.0	%		100.0	%
Overall gross margin		14.8	%		14.6	%		14.9	%		14.7	%
SG&A Expenses (Continuing Operations):
Compensation (4)	$	155,382		$	151,704		$	638,875		$	601,495
Advertising		15,409			15,327			57,437			56,609
Rent		18,384			17,632			73,707			73,976
Other (5)		75,227			69,984			297,414			271,045
Total SG&A expenses	$	264,402		$	254,647		$	1,067,433		$	1,003,125
SG&A expenses as % of gross profit		75.9	%		75.2	%		78.1	%		77.1	%
Operating Margin %		2.7	%		2.6	%		2.5	%		2.7	%
Unit Data (Continuing Operations):
New retail units		34,755			34,001			135,932			132,363
Fleet units		352			1,250			2,485			5,911
Total new units		35,107			35,251			138,417			138,274
Used units		26,406			26,354			110,113			107,054
Wholesale units		6,912			6,670			29,946			29,961

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Per Share Data

	Fourth Quarter Ended December 31, 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		51,272	$	26,957				$	(831	)				$	26,126
Effect of participating securities:
Non-vested restricted stock and stock units				(86	)				—						(86	)
Basic earnings (loss) and shares		51,272	$	26,871		$	0.52	$	(831	)	$	(0.01	)	$	26,040		$	0.51
Effect of dilutive securities:
Stock compensation plans		562
Diluted earnings (loss) and shares (1)		51,834	$	26,871		$	0.52	$	(831	)	$	(0.02	)	$	26,040		$	0.50
Adjustments (net of tax):
Fire and severe storm damage			$	594		$	0.01	$	—		$	—		$	594		$	0.01
Legal and other				355			—		—			—			355			—
Impairment charges				3,943			0.08		—			—			3,943			0.08
Gain on disposal of franchises				(157	)		—		—			—			(157	)		—
Permanent tax difference from disposals				853			0.02		—						853			0.02
Total adjustments			$	5,588		$	0.11	$	—		$	—		$	5,588		$	0.11
Adjusted:
Earnings (loss) and
Diluted earnings (loss) per share			$	32,545		$	0.63	$	(831	)	$	(0.02	)	$	31,714		$	0.61

(1) Expenses attributable to the EchoPark^® initiative were $0.08 per fully diluted share in the fourth quarter of 2014.

	Fourth Quarter Ended December 31, 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		52,492	$	29,562				$	(1,478	)				$	28,084
Effect of participating securities:
Non-vested restricted stock and stock units				(208	)				—						(208	)
Basic earnings (loss) and shares		52,492	$	29,354		$	0.56	$	(1,478	)	$	(0.03	)	$	27,876		$	0.53
Effect of dilutive securities:
Stock compensation plans		482
Diluted earnings (loss) and shares (2)		52,974	$	29,354		$	0.55	$	(1,478	)	$	(0.02	)	$	27,876		$	0.53
Adjustments (net of tax):
Impairment Charges			$	6,022		$	0.11	$	—		$	—		$	6,022		$	0.11
Effect of two-class method & rounding				—			0.01		—			(0.01	)		—			—
Total adjustments			$	6,022		$	0.12	$	—		$	(0.01	)	$	6,022		$	0.11
Adjusted:
Earnings (loss) and
Diluted earnings (loss) per share			$	35,584		$	0.67	$	(1,478	)	$	(0.03	)	$	34,106		$	0.64

(2) Expenses attributable to the EchoPark^® initiative were $0.03 per fully diluted share in the fourth quarter of 2013.

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Per Share Data

	Year Ended December 31, 2014
			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		52,065	$	98,559					$	(1,342	)				$	97,217
Effect of participating securities:
Non-vested restricted stock and stock units				(311	)					—						(311	)
Basic earnings (loss) and shares		52,065	$	98,248		$	1.89		$	(1,342	)	$	(0.03	)	$	96,906		$	1.86
Effect of dilutive securities:
Stock compensation plans		498
Diluted earnings (loss) and shares (3)		52,563	$	98,248		$	1.87		$	(1,342	)	$	(0.03	)	$	96,906		$	1.84
Adjustments (net of tax):
Fire and severe storm damage			$	2,685		$	0.05		$	—		$	—		$	2,685		$	0.05
Legal and other				749			0.01			—			—			749			0.01
Impairment charges				4,459			0.08			—			—			4,459			0.08
Gain on disposal of franchises				(7,273	)		(0.14	)		—			—			(7,273	)		(0.14	)
Permanent tax difference from disposals				853			0.02			—			—			853			0.02
Lease exit adjustments				—			—			(844	)		(0.02	)		(844	)		(0.02	)
Effect of two-class method & rounding				—			0.01			—			0.01			—			0.02
Total adjustments			$	1,473		$	0.03		$	(844	)	$	(0.01	)	$	629		$	0.02
Adjusted:
Earnings (loss) and
Diluted earnings (loss) per share			$	100,032		$	1.90		$	(2,186	)	$	(0.04	)	$	97,846		$	1.86

(3) Expenses attributable to the EchoPark^® initiative were $0.18 per fully diluted share in the year ended December 31, 2014.

	Year Ended December 31, 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		52,556	$	84,678				$	(3,060	)				$	81,618
Effect of participating securities:
Non-vested restricted stock and stock units				(601	)				—						(601	)
Basic earnings (loss) and shares		52,556	$	84,077		$	1.60	$	(3,060	)	$	(0.06	)	$	81,017		$	1.54
Effect of dilutive securities:
Stock compensation plans		385
Diluted earnings (loss) and shares (4)		52,941	$	84,077		$	1.59	$	(3,060	)	$	(0.06	)	$	81,017		$	1.53
Adjustments (net of tax):
Impairment Charges			$	6,022		$	0.11	$	—		$	—		$	6,022		$	0.11
Double-carry interest				17,704			0.33		—			—			17,704			0.33
Effect of two-class method & rounding				—			—		—			0.01			—			0.01
Total adjustments			$	23,726		$	0.44	$	—		$	0.01		$	23,726		$	0.45
Adjusted:
Earnings (loss) and
Diluted earnings (loss) per share			$	108,404		$	2.03	$	(3,060	)	$	(0.05	)	$	105,344		$	1.98

(4) Expenses attributable to the EchoPark^® initiative were $0.07 per fully diluted share in the year ended December 31, 2014.

Sonic Automotive, Inc.

Results of Operations (Unaudited)

New Vehicles

	Fourth Quarter Ended December 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	1,350,795		$	1,337,698		$	13,097			1.0	%
Gross profit	$	78,734		$	82,936		$	(4,202	)		(5.1	%)
Unit sales		35,107			35,251			(144	)		(0.4	%)
Revenue per unit	$	38,477		$	37,948		$	529			1.4	%
Gross profit per unit	$	2,243		$	2,353		$	(110	)		(4.7	%)
Gross profit as a % of revenue		5.8	%		6.2	%		(40	) bps
	Year Ended December 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	5,124,029		$	4,989,185		$	134,844			2.7	%
Gross profit	$	288,626		$	289,603		$	(977	)		(0.3	%)
Unit sales		138,417			138,274			143			0.1	%
Revenue per unit	$	37,019		$	36,082		$	937			2.6	%
Gross profit per unit	$	2,085		$	2,094		$	(9	)		(0.4	%)
Gross profit as a % of revenue		5.6	%		5.8	%		(20	) bps
	Fourth Quarter Ended December 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	1,338,612		$	1,292,378		$	46,234			3.6	%
Gross profit	$	78,136		$	80,604		$	(2,468	)		(3.1	%)
Unit sales		34,723			34,006			717			2.1	%
Revenue per unit	$	38,551		$	38,004		$	547			1.4	%
Gross profit per unit	$	2,250		$	2,370		$	(120	)		(5.1	%)
Gross profit as a % of revenue		5.8	%		6.2	%		(40	) bps
	Year Ended December 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	4,953,201		$	4,818,937		$	134,264			2.8	%
Gross profit	$	278,938		$	280,225		$	(1,287	)		(0.5	%)
Unit sales		134,059			133,578			481			0.4	%
Revenue per unit	$	36,948		$	36,076		$	872			2.4	%
Gross profit per unit	$	2,081		$	2,098		$	(17	)		(0.8	%)
Gross profit as a % of revenue		5.6	%		5.8	%		(20	) bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Used Vehicles

	Fourth Quarter Ended December 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	562,993		$	551,028		$	11,965			2.2	%
Gross profit	$	37,834		$	35,784		$	2,050			5.7	%
Unit sales		26,406			26,354			52			0.2	%
Revenue per unit	$	21,321		$	20,909		$	412			2.0	%
Gross profit per unit	$	1,433		$	1,358		$	75			5.5	%
Gross profit as a % of revenue		6.7	%		6.5	%		20	bps
	Year Ended December 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	2,310,247		$	2,176,034		$	134,213			6.2	%
Gross profit	$	157,246		$	150,400		$	6,846			4.6	%
Unit sales		110,113			107,054			3,059			2.9	%
Revenue per unit	$	20,981		$	20,327		$	654			3.2	%
Gross profit per unit	$	1,428		$	1,405		$	23			1.6	%
Gross profit as a % of revenue		6.8	%		6.9	%		(10	) bps
	Fourth Quarter Ended December 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	551,576		$	529,846		$	21,730			4.1	%
Gross profit	$	36,945		$	34,255		$	2,690			7.9	%
Unit sales		25,784			25,322			462			1.8	%
Revenue per unit	$	21,392		$	20,924		$	468			2.2	%
Gross profit per unit	$	1,433		$	1,353		$	80			5.9	%
Gross profit as a % of revenue		6.7	%		6.5	%		20	bps
	Year Ended December 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	2,200,362		$	2,085,069		$	115,293			5.5	%
Gross profit	$	150,990		$	144,253		$	6,737			4.7	%
Unit sales		105,057			102,597			2,460			2.4	%
Revenue per unit	$	20,944		$	20,323		$	621			3.1	%
Gross profit per unit	$	1,437		$	1,406		$	31			2.2	%
Gross profit as a % of revenue		6.9	%		6.9	%		0	bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Wholesale Vehicles

	Fourth Quarter Ended December 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	38,361		$	40,772		$	(2,411	)		(5.9	%)
Gross profit (loss)	$	(1,122	)	$	(1,589	)	$	467			29.4	%
Unit sales		6,912			6,670			242			3.6	%
Revenue per unit	$	5,550		$	6,113		$	(563	)		(9.2	%)
Gross profit (loss) per unit	$	(162	)	$	(238	)	$	76			31.9	%
Gross profit (loss) as a % of revenue		(2.9	%)		(3.9	%)		100	bps
	Year Ended December 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	166,158		$	175,328		$	(9,170	)		(5.2	%)
Gross profit (loss)	$	(3,616	)	$	(7,931	)	$	4,315			54.4	%
Unit sales		29,946			29,961			(15	)		(0.1	%)
Revenue per unit	$	5,549		$	5,852		$	(303	)		(5.2	%)
Gross profit (loss) per unit	$	(121	)	$	(265	)	$	144			54.3	%
Gross profit (loss) as a % of revenue		(2.2	%)		(4.5	%)		230	bps
	Fourth Quarter Ended December 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	37,572		$	39,745		$	(2,173	)		(5.5	%)
Gross profit (loss)	$	(939	)	$	(1,493	)	$	554			37.1	%
Unit sales		6,803			6,478			325			5.0	%
Revenue per unit	$	5,523		$	6,135		$	(612	)		(10.0	%)
Gross profit (loss) per unit	$	(138	)	$	(230	)	$	92			40.0	%
Gross profit (loss) as a % of revenue		(2.5	%)		(3.8	%)		130	bps
	Year Ended December 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	159,263		$	170,489		$	(11,226	)		(6.6	%)
Gross profit (loss)	$	(3,175	)	$	(7,305	)	$	4,130			56.5	%
Unit sales		28,885			29,092			(207	)		(0.7	%)
Revenue per unit	$	5,514		$	5,860		$	(346	)		(5.9	%)
Gross profit (loss) per unit	$	(110	)	$	(251	)	$	141			56.2	%
Gross profit (loss) as a % of revenue		(2.0	%)		(4.3	%)		230	bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

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

	Fourth Quarter Ended December 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands)
Reported:
Revenue
Customer pay	$	137,524		$	139,443		$	(1,919	)		(1.4	%)
Warranty		52,396			50,572			1,824			3.6	%
Wholesale parts		46,615			44,468			2,147			4.8	%
Internal, sublet and other		86,389			82,405			3,984			4.8	%
Total	$	322,924		$	316,888		$	6,036			1.9	%
Gross profit
Customer pay	$	74,734		$	76,315		$	(1,581	)		(2.1	%)
Warranty		29,135			26,694			2,441			9.1	%
Wholesale parts		8,042			8,084			(42	)		(0.5	%)
Internal, sublet and other		44,353			41,493			2,860			6.9	%
Total	$	156,264		$	152,586		$	3,678			2.4	%
Gross profit as a % of revenue
Customer pay		54.3	%		54.7	%		(40	) bps
Warranty		55.6	%		52.8	%		280	bps
Wholesale parts		17.3	%		18.2	%		(90	) bps
Internal, sublet and other		51.3	%		50.4	%		90	bps
Total		48.4	%		48.2	%		20	bps
	Year Ended December 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands)
Reported:
Revenue
Customer pay	$	565,144		$	546,695		$	18,449			3.4	%
Warranty		194,468			188,061			6,407			3.4	%
Wholesale parts		188,687			169,338			19,349			11.4	%
Internal, sublet and other		348,271			326,084			22,187			6.8	%
Total	$	1,296,570		$	1,230,178		$	66,392			5.4	%
Gross profit
Customer pay	$	309,885		$	300,800		$	9,085			3.0	%
Warranty		106,298			101,351			4,947			4.9	%
Wholesale parts		32,633			31,242			1,391			4.5	%
Internal, sublet and other		174,733			163,699			11,034			6.7	%
Total	$	623,549		$	597,092		$	26,457			4.4	%
Gross profit as a % of revenue
Customer pay		54.8	%		55.0	%		(20	) bps
Warranty		54.7	%		53.9	%		80	bps
Wholesale parts		17.3	%		18.4	%		(110	) bps
Internal, sublet and other		50.2	%		50.2	%		0	bps
Total		48.1	%		48.5	%		(40	) bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

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

	Fourth Quarter Ended December 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands)
Same Store:
Revenue
Customer pay	$	135,913		$	134,788		$	1,125			0.8	%
Warranty		51,832			48,565			3,267			6.7	%
Wholesale parts		46,099			43,107			2,992			6.9	%
Internal, sublet and other		84,174			79,693			4,481			5.6	%
Total	$	318,018		$	306,153		$	11,865			3.9	%
Gross profit
Customer pay	$	73,891		$	73,824		$	67			0.1	%
Warranty		28,861			25,736			3,125			12.1	%
Wholesale parts		7,941			7,814			127			1.6	%
Internal, sublet and other		43,043			39,877			3,166			7.9	%
Total	$	153,736		$	147,251		$	6,485			4.4	%
Gross profit as a % of revenue
Customer pay		54.4	%		54.8	%		(40	) bps
Warranty		55.7	%		53.0	%		270	bps
Wholesale parts		17.2	%		18.1	%		(90	) bps
Internal, sublet and other		51.1	%		50.0	%		110	bps
Total		48.3	%		48.1	%		20	bps
	Year Ended December 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands)
Same Store:
Revenue
Customer pay	$	538,930		$	527,034		$	11,896			2.3	%
Warranty		185,526			180,125			5,401			3.0	%
Wholesale parts		181,058			163,979			17,079			10.4	%
Internal, sublet and other		334,166			314,529			19,637			6.2	%
Total	$	1,239,680		$	1,185,667		$	54,013			4.6	%
Gross profit
Customer pay	$	296,160		$	290,238		$	5,922			2.0	%
Warranty		101,689			97,581			4,108			4.2	%
Wholesale parts		30,804			30,143			661			2.2	%
Internal, sublet and other		166,909			157,123			9,786			6.2	%
Total	$	595,562		$	575,085		$	20,477			3.6	%
Gross profit as a % of revenue
Customer pay		55.0	%		55.1	%		(10	) bps
Warranty		54.8	%		54.2	%		60	bps
Wholesale parts		17.0	%		18.4	%		(140	) bps
Internal, sublet and other		49.9	%		50.0	%		(10	) bps
Total		48.0	%		48.5	%		(50	) bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

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

	Fourth Quarter Ended December 31,				Better / (Worse)
	2014		2013		Change		% Change
	(In thousands, except per unit data)
Reported:
Revenue	$	76,755	$	68,983	$	7,772		11.3	%
Gross profit per retail unit (excludes fleet)	$	1,255	$	1,143	$	112		9.8	%
	Year Ended December 31,				Better / (Worse)
	2014		2013		Change		% Change
	(In thousands, except per unit data)
Reported:
Revenue	$	300,095	$	272,443	$	27,652		10.1	%
Gross profit per retail unit (excludes fleet)	$	1,220	$	1,138	$	82		7.2	%
	Fourth Quarter Ended December 31,				Better / (Worse)
	2014		2013		Change		% Change
	(In thousands, except per unit data)
Same Store:
Revenue	$	75,745	$	66,476	$	9,269		13.9	%
Gross profit per retail unit (excludes fleet)	$	1,259	$	1,145	$	114		10.0	%
	Year Ended December 31,				Better / (Worse)
	2014		2013		Change		% Change
	(In thousands, except per unit data)
Same Store:
Revenue	$	289,833	$	263,038	$	26,795		10.2	%
Gross profit per retail unit (excludes fleet)	$	1,225	$	1,142	$	83		7.3	%

Sonic Automotive, Inc.

Results of Operations (Unaudited)

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

	Fourth Quarter Ended December 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands)
Reported:
Compensation	$	155,382		$	151,704		$	(3,678	)		(2.4	%)
Advertising		15,409			15,327			(82	)		(0.5	%)
Rent		18,384			17,632			(752	)		(4.3	%)
Other		75,227			69,984			(5,243	)		(7.5	%)
Total	$	264,402		$	254,647		$	(9,755	)		(3.8	%)
SG&A expenses as a % of gross profit
Compensation		44.6	%		44.8	%		20	bps
Advertising		4.4	%		4.5	%		10	bps
Rent		5.3	%		5.2	%		(10	) bps
Other		21.6	%		20.7	%		(90	) bps
Total		75.9	%		75.2	%		(70	) bps
	Year Ended December 31,						Better / (Worse)
	2014			2013			Change			% Change
	(In thousands)
Reported:
Compensation	$	638,875		$	601,495		$	(37,380	)		(6.2	%)
Advertising		57,437			56,609			(828	)		(1.5	%)
Rent		73,707			73,976			269			0.4	%
Other		297,414			271,045			(26,369	)		(9.7	%)
Total	$	1,067,433		$	1,003,125		$	(64,308	)		(6.4	%)
SG&A expenses as a % of gross profit
Compensation		46.8	%		46.2	%		(60	) bps
Advertising		4.2	%		4.3	%		10	bps
Rent		5.4	%		5.7	%		30	bps
Other		21.7	%		20.9	%		(80	) bps
Total		78.1	%		77.1	%		(100	) bps

EX-99.2

Q4 2014 EARNINGS REVIEW

February 24, 2015

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

•

FINANCIAL RESULTS

•

OPERATIONS REVIEW

•

SUMMARY AND OUTLOOK

3

4

STRATEGIC FOCUS

1.

Growth

•

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 Stores Underway

•

24 Month Implementation

Result -

Increase Market Share and Customer Retention

6

STRATEGIC FOCUS

ONE SONIC-ONE EXPERIENCE (cont’d)

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 Opened November 3

•

2 Neighborhood Stores

Opened in January 2015

•

Expect at least 2 more in 2015

8

STRATEGIC FOCUS

ACQUISITIONS & OPEN POINTS

•

Purchased Four Franchises: Jaguar (Q1),

Nissan (Q3), Chevy and Land Rover (Q4) during

2014

–

Estimated Annual Revenues of $156 million

•

Open Points

–

Mercedes Benz in Dallas Market

–

Audi in Pensacola Market

–

Nissan in TN Market

–

Exploring Opportunities in Other Markets

9

STRATEGIC FOCUS

OWN OUR PROPERTIES

2007

2008

2011

2012

2013

2014

Proj. -

2017

0%

12%

18%

23%

31%

36%

49%

10

STRATEGIC FOCUS

RETURN CAPITAL TO SHAREHOLDERS

•

Unused Authorization of Approximately $ 79 million

•

Quarterly Dividend of $0.025 Per Share

Shares

(in thousands)

Average Price /

Share

$

(in millions)

2014 Activity

2,256

$ 23.51

$ 53.0

Q4 & FY 2014 FINANCIAL

REVIEW

ADJUSTED Q4 & FY 2014 RESULTS

B/(W) than Q4

2013

B/(W) than 2013

(amounts in millions, except per share data)

Q4 2014

$

%

2014

$

%

Revenue

$ 2,352

$ 36

1.6%

$ 9,197

$ 354

4.0%

Gross Profit

$ 349

$ 10

2.9%

$ 1,366

$ 64

4.9%

Operating Profit

(1)

$ 70

$ 1

1.4%

$ 235

($ 10)

(4.1%)

Interest & Other

(1)

($ 17)

$ 1

7.4%

($ 72)

$ 5

6.1%

Continuing Ops:

Profit (after tax)

(1)

$ 33

($3)

(8.5%)

$ 100

($ 8)

(7.7%)

Diluted EPS

(1)

$ 0.63

($ 0.04)

(6.0%)

$ 1.90

($ 0.13)

(6.0%)

SG&A as % of Gross

(1)

75.5%

(30 bps)

78.6%

(150 bps)

Discontinued Ops Profit/(Loss)  (after tax)

($ 1)

$ 1

($2 )

$ 1

12

(1) –

Amounts are adjusted.  See appendix for reconciliation of adjusted amounts to GAAP amounts

13

(amounts in millions, except per share date)

Q4 2014

Q4 2013

Pre-Tax

EPS

Pre-Tax

EPS

Reported EPS

$ 0.52

$ 0.55

Storm Damage

$ 1.5

$ 0.03

$ 0.0

$ 0.00

Gain on Disposal

($ 0.2)

($ 0.00)

$ 0.0

$ 0.00

Impairment

$ 6.4

$ 0.08

$ 9.9

$ 0.12

Adjusted EPS

$ 0.63

$ 0.67

EchoPark

$ 7.1

$ 0.08

$ 2.2

$ 0.03

Comparable EPS

$ 0.71

$ 0.70

EPS WALK–

Q4

EPS WALK–

FY 2014

14

(amounts in millions, except per share date)

2014

2013

Pre-Tax

EPS

Pre-Tax

EPS

Reported EPS

$ 1.87

$ 1.59

Storm Damage

$ 4.0

$ 0.05

$ 0.0

$ 0.00

Legal

$ 1.1

$0.01

$ 0.0

$ 0.00

Gain on Disposal

($ 10.7)

($ 0.11)

$ 0.0

$ 0.00

Impairment

$ 6.6

$ 0.08

$ 9.9

$ 0.11

Debt Refi

$ 0.0

$ 0.00

$ 29.0

$ 0.33

Adjusted EPS

$ 1.90

$ 2.03

EchoPark®

$ 15.7

$ 0.18

$ 5.5

$ 0.07

Comparable EPS

$ 2.08

$ 2.10

ECHOPARK –

Q4 & FY 2014 RESULTS

15

(amounts in millions, except per share data)

Q4 2014

B/(W)

than Q4

2013

FY 2014

B/(W)

than FY

2013

Revenue

$ 5.4

$ 5.4

$ 5.4

$ 5.4

Gross Profit

$ 0.5

$ 0.5

$ 0.5

$ 0.5

Operating Profit

($ 7.0)

($ 4.8)

($ 15.6)

($ 10.1)

Interest & Other

($0.1 )

($ 0.1)

($ 0.1)

($ 0.1)

Pre-tax Profit (Loss)

($ 7.1)

($ 4.9)

($ 15.7)

($ 10.2)

ADJUSTED SG&A TO GROSS

16

75.5%

75.2%

Note: See Appendix for reconciliation to GAAP amounts

78.6%

77.1%

Q4 2014

Q4 2013

FY 2014

FY 2013

4.4%

4.5%

4.2%

4.3%

44.6%

44.7%

46.8%

46.2%

7.6%

7.5%

7.8%

8.1%

18.9%

18.5%

19.8%

18.5%

Advertising

Comp

Rent & Related

Other

SG&A TO GROSS WALK –

Q4

17

Note: See Appendix for reconciliation to GAAP amounts

Q4 2014

Adjusted

Less:

EchoPark

Less: OSOE

Less:

Centralization

Q4 2014 Adj

for Initiatives

75.5%

(1.9%)

(1.1%)

(0.3%)

72.2%

210 bps

Better than

Q4 2013 of

74.3%

SG&A TO GROSS WALK –

FY 2014

18

Note: See Appendix for reconciliation to GAAP amounts

FY 2014

Adjusted

Less:

EchoPark

Less: OSOE

Less:

Centralization

FY 2014 Adj

for Initiatives

78.6%

(1.1%)

(0.8%)

(0.2%)

76.5%

STRATEGIC INITIATIVE INVESTMENTS

19

(in millions)

2014

Estimated 2015

EchoPark®

$ 15.7

$ 13.3

One Sonic-One Experience

$ 10.4

$ 10.0

Centralization of Business Office

$ 2.1

$ 5.0

CAPITAL SPEND

(amounts in millions)

YTD 2014

Estimated

2015

Real Estate & Facility Related

$ 124.3

$159.1

All Other Cap Ex

39.6

42.0

Subtotal

$ 163.9

$ 201.1

Less: Mortgage Funding

(44.4)

(100.6)

Total Cash Used –

Cap Ex

$ 119.5

$ 100.5

Note –

Spending excludes the effect of  franchise acquisitions.

20

LIQUIDITY

(amounts in millions)

Q4 2014

Q4 2013

Cash

$ 4.2

$3.0

Revolver Availability

165.4

126.0

Used floor plan availability

22.6

27.1

Floor plan deposit balance

57.5

65.0

Total

$ 249.7

$221.1

21

DEBT COVENANTS

Covenant

Actual Q4

2014

Liquidity Ratio

>= 1.05

1.20

Fixed Charge Coverage Ratio

>= 1.20

1.61

Total Lease Adjusted Leverage

Ratio

<= 5.50

4.12

Compliant with all Covenants

22

OPERATIONS

REVIEW

NEW VEHICLE RETAIL

SAME STORE

Q4 2014

Q4 2013

B/(W)

Volume

34,371

32,756

4.9%

Selling Price

$ 38,571

$ 38,287

0.7%

Gross Margin %

5.9%

6.4%

(50 bps)

GPU

$ 2,269

$ 2,435

($ 166)

Gross Profit

$ 78 million

$ 80 million

(2.2%)

SAAR (includes fleet)

16.8 million

15.6 million

7.2%

24

25

Q4 REVENUE MIX

Industry

Growth

Ford

(0.7%)

GM (includes

Cadillac)

8.7%

Chrysler

21.0%

Honda

3.3%

Toyota

7.4%

Nissan

7.1%

MB

0.8%

BMW

6.7%

Lexus

9.2%

Audi

16.9%

Ford,

7.1%

GM

(includes

Cadillac),

7.8%

Chrysler,

0.0%

Honda,

22.3%

Toyota,

14.0%

Nissan,

0.0%

Other

Import,

6.1%

MB, 8.5%

BMW,

19.1%

Lexus,

5.0%

Audi,

3.6%

Other

Luxury,

6.5%

Q4 2014 vs. Q4 2013

NEW VEHICLE -

BRAND

18.7%

8.0%

2.3%

7.0%

5.4%

22.5%

4.8%

13.8%

4.0%

% Sonic Unit Sales

BMW

MB

Cadillac

Ford

GM

Honda

Lexus

Toyota

Audi

21%

(1%)

(12%)

(5%)

10%

7%

2%

5%

16%

7%

1%

(13%)

(1%)

10%

3%

9%

7%

17%

Sonic

Industry

26

USED VEHICLE RETAIL

SAME STORE

Q4 2014

Q4 2013

B/(W)

Retail Volume

25,784

25,322

1.8%

Used Retail GPU

$ 1,433

$ 1,353

$ 80

Used to New

0.75 : 1

0.77 : 1

(0.02)

Vehicles / store / month (all stores)

88

86

2

27

FIXED OPS

SAME STORE

28

QTD YOY Gross Profit Change Breakdown:

Q4 2014

B/(W)

than 2013

(amounts in millions)

$

%

Revenue

$

318.0

$ 11.9

3.9%

Gross Profit

$ 153.7

$ 6.5

4.4%

•

Customer Pay Up 0.1%

•

Whsl. Parts Up 1.6%

•

Internal & Sublet Up 8.1%

•

Warranty Up 12.1%

OSOE

30

OSOE

•

Low turnover as a result of the changes

•

January is our first full month and share is reacting positively

•

We are easily doing deals in less than an hour if that is a guest wish

•

Customer feedback is fantastic

•

Our training is excellent

•

We are attracting a new type of employee

•

New CRM tool and Showroom technology is working properly and a

competitive advantage

•

Competition is reacting to our moves –

pricing and advertising

•

F&I continues to improve

•

Marketing begins in February for the Charlotte Market

•

No plans to move to next market until Charlotte share and profit

goals

are met

•

Website performance issues (resolved)

•

SEO/SEM performance issues (improving)

•

BDC / GEC conversion (improving)

•

Pricing tool is not complete (new car –

90 days out)

•

Inventory purchase tool not complete (new car -

6 months out)

EARLY OBSERVATIONS

OPPORTUNITIES

31

OSOE –

MARKET SHARE

Market Share is

Stabilizing

17.8%

14.4%

13.2%

12.9%

14.2%

13.1%

14.6%

18.0%

20.8%

15.8%

16.0%

15.1%

15.8%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

22.0%

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Jul-14

Aug-14

Sep-14

Oct-14

Nov-14

Dec-14

Jan-15

Town & Country Toyota

•

October 2014 -

T&C Toyota Soft

Open

•

November 2014

–

First Full

Month for Toyota

•

December

2014

–

Other

Charlotte

Stores Soft Open

•

January 2015 –

First Full Month

for Other Charlotte Stores

32

OSOE –

MARKET SHARE

20.6%

17.7%

19.5%

18.3%

17.0%

16.9%

13.9%

18.5%

17.3%

12.3%

16.0%

13.3%

15.9%

10.0%

15.0%

20.0%

25.0%

30.0%

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Jul-14

Aug-14

Sep-14

Oct-14

Nov-14

Dec-14

Jan-15

Town & Country Ford

18.5%

20.1%

15.9%

18.5%

20.1%

16.3%

17.0%

15.4%

16.3%

14.9%

12.4%

14.5%

16.9%

10.0%

15.0%

20.0%

25.0%

30.0%

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Jul-14

Aug-14

Sep-14

Oct-14

Nov-14

Dec-14

Jan-15

Fort Mill Ford

33

OSOE –

MARKET SHARE

42.5%

41.1%

40.7%

51.1%

30.0%

44.4%

43.5%

46.6%

40.5%

50.6%

40.5%

31.7%

42.6%

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Jul-14

Aug-14

Sep-14

Oct-14

Nov-14

Dec-14

Jan-15

Infiniti of South Charlotte

35.7%

32.5%

47.5%

41.7%

38.7%

36.7%

40.4%

40.0%

37.1%

45.7%

32.2%

26.5%

41.3%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%

60.0%

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Jul-14

Aug-14

Sep-14

Oct-14

Nov-14

Dec-14

Jan-15

Cadillac of South Charlotte

EchoPark

®

35

EARLY OBSERVATIONS

•

Very low to no turnover

•

Fantastic guest experience –

take a look at the testimonials from Yelp, Yahoo, Google –

that’s what we are looking for!

•

Reconditioning levels are very high 

•

F&I performance ahead of projection with no F&I office

•

EchoPark SIMS -

Excellent inventory management system (buying, intercompany

movement) –

performance is above expectations with no inventory issues

•

Appraisal process –

is fantastic and a favorite of our guests

•

Volume has started off very well

•

Store technology is strong and improving

OPPORTUNITIES

•

Website performance issues (not resolved)

•

Same as OSOE Stores; working to resolve but website performance is not

acceptable and will be resolved in the coming weeks

•

SEO/SEM performance issues (plan being implemented)

•

Weather has been a big issue –

held up openings of 2 locations

•

Pricing system –

delayed completion will start 3/1/15

EchoPark®

36

EchoPark®

Openings:

Hub

–

11/3/2014

Centennial –

12/26/2015

Highlands Ranch –

1/26/2015

0

82

126

150

0

0

35

6

0

20

40

60

80

100

120

140

160

Unit Volume

HUB

Centennial

Highlands Ranch

SUMMARY

Continued to grow the top-line in each revenue

category achieving record results

The franchised dealership landscape supported our

operating initiatives

Significant milestones / achievements in 2014

•

Opening of EchoPark

®

•

Rollout of One Sonic-One Experience

•

Gained ground on owning properties –

now at 36%

•

Returned $82.8 million to shareholders through

share repurchases and dividends

SUMMARY

38

2015 PLAN

2015 Plan

Expect new car industry volume to be between 16.5M to

17.0M units

We will continue to increase pre-owned volume in the mid-

single digits

Expect fixed operations to grow at mid-single digits

Costs

related

to

EchoPark

®

,

One

Sonic-One

Experience,

and centralization to continue

2015 Continued Ops EPS Guidance:

•

New Car Franchise Business

$2.01 -

$2.11

•

Effect of EchoPark

®

($0.16)

•

Total Sonic

$1.85 -

$1.95

39

Appendix

41

NON-GAAP RECONCILIATIONS

42

Fourth Quarter Ended

Year Ended

2014

2013

2014

2013

SG&A Reconciliation:

As Reported

264,402

$         

254,647

$         

1,067,433

$      

1,003,125

$      

Pre-tax Adjustments:

Fire and severe storm damage

(961)

-

(3,965)

-

Legal and other

(575)

-

(1,105)

-

Gain on disposal of franchises

254

-

10,743

-

Total pre-tax adjustments

(1,282)

-

5,673

-

Adjusted SG&A

263,120

$         

254,647

$         

1,073,106

$      

1,003,125

$      

SG&A as % of Gross Reconciliation:

As Reported

75.9%

75.2%

78.1%

77.1%

Pre-tax Adjustments:

Fire and severe storm damage

(0.3%)

0.0%

(0.2%)

0.0%

Legal and other

(0.2%)

0.0%

(0.1%)

0.0%

Gain on disposal of franchises

0.1%

0.0%

0.8%

0.0%

Total pre-tax adjustments

(0.4%)

0.0%

0.5%

0.0%

Adjusted SG&A as % of Gross

75.5%

75.2%

78.6%

77.1%

December 31,

(In thousands)

This release contains certain non-GAAP financial measures (the "Adjusted" amounts) 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" amounts) 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.

December 31,

(In thousands)

43

NON-GAAP RECONCILIATIONS

Fourth Quarter Ended

Year Ended

2014

2013

2014

2013

Operating Profit Reconciliation:

As Reported

62,470

$           

59,264

$           

233,613

$         

234,603

$         

Pre-tax Adjustments:

Fire and severe storm damage

961

-

3,965

-

Legal and other

575

-

1,105

-

Impairment charges

6,379

9,873

6,586

9,872

Gain on disposal of franchises

(254)

-

(10,743)

-

Total pre-tax adjustments

7,661

9,873

913

9,872

Adjusted Operating Profit

70,131

$           

69,137

$           

234,526

$         

244,475

$         

Profit from Continuing Operations (after-tax) Reconciliation:

As Reported

26,957

$           

29,562

$           

98,559

$           

84,678

$           

After-tax Adjustments:

Fire and severe storm damage

594

-

2,683

-

Legal and other

355

-

749

-

Impairment charges

3,943

6,022

4,459

6,022

Gain on disposal of franchises

(157)

-

(7,273)

-

Permanent tax difference from disposals

853

-

853

-

Debt Refinancing

-

-

-

17,704

Total after-tax adjustments

5,588

6,022

1,471

23,726

Adjusted Profit from Continuing Operations (after-tax)

32,545

$           

35,584

$           

100,030

$         

108,404

$         

December 31,

(In thousands)

December 31,

(In thousands)

NON-GAAP RECONCILIATIONS

44

Fourth Quarter Ended December 31, 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 . . . . . . . . . . . . . . . . . .

51,272

26,957

$     

(831)

$       

26,126

$     

Effect of participating securities:

Non-vested restricted stock

and stock units . . . . . . . . . . . . . . . . . . . . . . .

(86)

-

(86)

Basic earnings (loss) and shares . . . . . . . . . . . . .

51,272

26,871

$     

0.52

$       

(831)

$       

(0.01)

$     

26,040

$     

0.51

$       

Effect of dilutive securities:

Stock compensation plans . . . . . . . . . . . . . . . .

562

Diluted earnings (loss) and shares (1) . . . . . . . . ..

51,834

26,871

$     

0.52

$       

(831)

$       

(0.02)

$     

26,040

$     

0.50

$       

Adjustments (net of tax):

Fire and severe storm damage . . . . . . . . . . . . . . .

594

$          

0.01

$       

-

$              

-

$        

594

$          

0.01

$       

Legal and other. . . . . . . . . . . . . . . . . . . . . . . . . . ..

355

-

-

-

355

-

Impairment charges. . . . . . . . . . . . . . . . . . . . . . .

3,943

0.08

-

-

3,943

0.08

Gain on disposal of franchises . . . . . . . . . . . . . .

(157)

-

-

-

(157)

-

Permanent tax difference from disposals . . . . . .

853

0.02

-

853

0.02

Total adjustments . . . . . . . . . . . . . . . . . . . . . .

5,588

$       

0.11

$       

-

$              

-

$        

5,588

$       

0.11

$       

Adjusted:

Earnings (loss) and

Diluted earnings (loss) per share . . . . . . . . . . .

32,545

$     

0.63

$       

(831)

$       

(0.02)

$     

31,714

$     

0.61

$       

(1) Expenses attributable to the EchoPark® initiative were $0.08 per fully diluted share in the fourth quarter of 2014.

Fourth Quarter Ended December 31, 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 . . . . . . . . . . . . . . . . . .

52,492

29,562

$     

(1,478)

$    

28,084

$     

Effect of participating securities:

Non-vested restricted stock

and stock units . . . . . . . . . . . . . . . . . . . . . . .

(208)

-

(208)

Basic earnings (loss) and shares . . . . . . . . . . . . .

52,492

29,354

$     

0.56

$       

(1,478)

$    

(0.03)

$     

27,876

$     

0.53

$       

Effect of dilutive securities:

Stock compensation plans . . . . . . . . . . . . . . . .

482

Diluted earnings (loss) and shares  (2). . . . . . . .. .

52,974

29,354

$     

0.55

$       

(1,478)

$    

(0.02)

$     

27,876

$     

0.53

$       

Adjustments (net of tax):

Impairment Charges . . . . . . . . . . . . . . . . . . . . . .

6,022

$       

0.11

$       

-

$              

-

$        

6,022

$       

0.11

$       

Effect of two-class method & rounding . . . . . . .

-

0.01

-

(0.01)

-

-

Total adjustments . . . . . . . . . . . . . . . . . . . . . .

6,022

$       

0.12

$       

-

$              

(0.01)

$     

6,022

$       

0.11

$       

Adjusted:

Earnings (loss) and

Diluted earnings (loss) per share . . . . . . . . . . .

35,584

$     

0.67

$       

(1,478)

$    

(0.03)

$     

34,106

$     

0.64

$       

(2) Expenses attributable to the EchoPark® initiative were $0.03 per fully diluted share in the fourth quarter of 2013.

45

NON-GAAP RECONCILIATIONS

Year Ended December 31, 2014

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 . . . . . . . . . . . . . . . . . .

52,065

98,559

$     

(1,342)

$    

97,217

$     

Effect of participating securities:

Non-vested restricted stock

and stock units . . . . . . . . . . . . . . . . . . . . . . .

(311)

-

(311)

Basic earnings (loss) and shares . . . . . . . . . . . . .

52,065

98,248

$     

1.89

$       

(1,342)

$    

(0.03)

$     

96,906

$     

1.86

$       

Effect of dilutive securities:

Contingently convertible

debt (5.0% Convertible Notes) . . . . . . . . . . .

-

-

-

-

Stock compensation plans . . . . . .. . . . . . . . . . .

498

Diluted earnings (loss) and shares (3). . . . . . . . .

52,563

98,248

$     

1.87

$       

(1,342)

$    

(0.03)

$     

96,906

$     

1.84

$       

Adjustments (net of tax):

Fire and severe storm damage . . . . . . . . . . . . . . .

2,685

$       

0.05

$       

-

$              

-

$        

2,685

$       

0.05

$       

Legal and other. . . . . . . . . . . . . . . . . . . . . . . . . . ..

749

0.01

-

-

749

0.01

Impairment charges. . . . . . . . . . . . . . . . . . . . . . .

4,459

0.08

-

-

4,459

0.08

Gain on disposal of franchises . . . . . . . . . . . . . .

(7,273)

(0.14)

-

-

(7,273)

(0.14)

Permanent tax difference from disposals . . . . . .

853

0.02

-

-

853

0.02

Lease exit adjustments . . . . . . . . . . . . . . . . . . . .

-

-

(844)

(0.02)

(844)

(0.02)

Effect of two-class method & rounding . . . . . . .

-

0.01

-

0.01

-

0.02

Total adjustments . . . . . . . . . . . . . . . . . . . . . .

1,473

$       

0.03

$       

(844)

$       

(0.01)

$     

629

$          

0.02

$       

Adjusted:

Earnings (loss) and

Diluted earnings (loss) per share . . . . . . . . . . .

100,032

$   

1.90

$       

(2,186)

$    

(0.04)

$     

97,846

$     

1.86

$       

(3) Expenses attributable to the EchoPark® initiative were $0.18 per fully diluted share in the year ended December 31, 2014.

Year Ended December 31, 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 . . . . . . . . . . . . . . . . . .

52,556

84,678

$     

(3,060)

$    

81,618

$     

Effect of participating securities:

Non-vested restricted stock

and stock units . . . . . . . . . . . . . . . . . . . . . . .

(601)

-

(601)

Basic earnings (loss) and shares . . . . . . . . . . . . .

52,556

84,077

$     

1.60

$       

(3,060)

$    

(0.06)

$     

81,017

$     

1.54

$       

Effect of dilutive securities:

Stock compensation plans . . . . . . . . . . . . . . . .

385

Diluted earnings (loss) and shares (4) . . . . . . . . ..

52,941

84,077

$     

1.59

$       

(3,060)

$    

(0.06)

$     

81,017

$     

1.53

$       

Adjustments (net of tax):

Impairment Charges . . . . . . . . . . . . . . . . . . . . . .

6,022

$       

0.11

$       

-

$              

-

$        

6,022

$       

0.11

$       

Double-carry interest & refinancing . . . . . . . . . .

17,704

0.33

-

-

17,704

0.33

Debt extinguishment charges . . . . . . . . . . . . . . . .

-

-

-

-

-

-

Effect of two-class method & rounding . . . . . . .

-

-

-

0.01

-

0.01

Total adjustments . . . . . . . . . . . . . . . . . . . . . .

23,726

$     

0.44

$       

-

$              

0.01

$       

23,726

$     

0.45

$       

Adjusted:

Earnings (loss) and

Diluted earnings (loss) per share . . . . . . . . . . .

108,404

$   

2.03

$       

(3,060)

$    

(0.05)

$     

105,344

$   

1.98

$       

(4) Expenses attributable to the EchoPark® initiative were $0.07 per fully diluted share in the year ended December 31, 2014.

EX-99.3

Exhibit 99.3

FOR IMMEDIATE RELEASE

SONIC AUTOMOTIVE, INC. DECLARES QUARTERLY CASH DIVIDEND

CHARLOTTE, N.C. – February 24, 2015 – 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 March 13, 2015. The dividend will be payable on April 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