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): July 28, 2017

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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02. Results of Operations and Financial Condition.

On July 28, 2017, Sonic Automotive, Inc. (the “Company”) issued a press release announcing its financial results for its fiscal second quarter ended June 30, 2017 (the “Earnings Press Release”). A copy of the Earnings 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 July 28, 2017, in the Earnings Press Release, the Company announced the approval of a quarterly cash dividend.

Item 9.01. Financial Statements and Exhibits.

(d)    Exhibits.

99.1	Press release of Sonic Automotive, Inc., dated July 28, 2017
99.2	Earnings call presentation materials

The information in this Current Report on Form 8-K, including the exhibits attached hereto, is being furnished and shall not be deemed to be “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 to be 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: July 28, 2017	By:	/s/ HEATH R. BYRD
		Heath R. Byrd
		Executive Vice President and
		Chief Financial Officer

INDEX TO EXHIBITS

Exhibit No.	Description
99.1	Press release of Sonic Automotive, Inc., dated July 28, 2017
99.2	Earnings call presentation materials

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Sonic Automotive, Inc. Reports Second Quarter Results and EchoPark^® Expansion

CHARLOTTE, N.C. – July 28, 2017 – Sonic Automotive, Inc. (NYSE: SAH), one of the nation’s largest automotive retailers, today reported financial results for the second quarter of 2017.

Second Quarter 2017 Results & Announcements

• EchoPark stores retailed 2,049 units, up 80.4% over the prior year quarter

• Accelerated expansion of an additional 15 EchoPark stores by the end of 2018

• Record Q2 pre-owned units of 30,536 contributing gross profit of $40.0 million

• All-time record quarterly fixed operations gross profit of $173.1 million, up 2.9% over the prior year quarter

• Record Q2 F&I gross profit and gross profit per retail unit of $86.9 million and $1,379, respectively

• Record Q2 total gross profit of $360.6 million, up 2.1% over the prior year quarter

• Repurchased 1.2 million Class A shares (approximately 2.6% of outstanding stock) for $22.0 million and declared $0.05/share dividend

• GAAP continuing operations net income of $12.3 million with EPS of $0.27 per diluted share

• Adjusted continuing operations net income of $17.9 million with adjusted EPS of $0.40 per diluted share

GAAP Basis

Net income from continuing operations for the second quarter of 2017 was $12.3 million, or $0.27 per diluted share. These results include charges related to fixed asset impairments, weather-related physical damage costs, legal matters, and charges associated with closing and relocating stores. Also included in the GAAP reported amounts for the second quarter of 2017 is a net after-tax loss from operations related to EchoPark of $4.7 million, or $0.11 per diluted share.

Comparatively, net income from continuing operations for the second quarter of 2016 was $23.0 million, or $0.50 per diluted share. Included in the GAAP reported amounts for the second quarter of 2016 is a net after-tax loss from operations related to EchoPark of $2.0 million, or $0.04 per diluted share.

Adjusted Basis

Adjusted net income from continuing operations and related earnings per diluted share are non-GAAP financial measures. The schedules included in this press release reconcile these non-GAAP financial measures to the most directly comparable GAAP financial measures.

Adjusted net income from continuing operations for the second quarter of 2017 was $17.9 million, or $0.40 per diluted share. There were no adjustments in the second quarter of 2016. The adjustments in the 2017 quarterly period relate to fixed asset impairments, weather-related physical damage costs, legal matters, and charges associated with closing and relocating stores.

Commentary

Jeff Dyke, Sonic’s EVP of Operations, stated, “Given our performance at EchoPark, we are accelerating our expansion into the Carolinas, Florida, Georgia and Texas markets. Our Colorado stores were cash flow positive in the quarter. Currently, we have more than 15 locations in the aforementioned markets that will break ground in 2017 and 2018.”

“The new vehicle retail sales environment continues to be challenging in Houston and across certain brands. Our exposure to BMW, coupled with economic conditions in Houston’s energy corridor, pressured sales and profitability in the second quarter. On a same store basis, our new vehicle unit sales declined 3.0% compared to the prior year quarter. This decline was slightly higher than the overall SAAR decline of 2.9%. Other parts of the business, however, continue to experience growth. We were able to grow used vehicle, fixed operations and F&I (finance and insurance) gross profit during the quarter which is a testament to the dealer operating model. In addition, our operations and financial management teams have been busy during the quarter adjusting our cost structure in various areas to compensate for increased competition that has pressured margins. We expect this highly competitive retail landscape to continue and possibly intensify over the next several quarters as dealers balance volume and gross per unit expectations.”

B. Scott Smith, the Company’s Chief Executive Officer, noted, “Our activities in the quarter continue to support our long-term growth strategies. During the second quarter, we opened our new open point Audi store in Pensacola, Florida and our sixth EchoPark store in Colorado. We believe these investments will offer strong earning streams as the underlying businesses mature. Year to date, we also invested approximately $30 million returning capital to stockholders through dividends and share repurchases. Our facilities teams have been extremely busy as well, evidenced by the $121 million invested in capital expenditures during the first half of 2017. We are committed to offering the best customer buying experience in the industry, which includes state of the art facilities at both our franchised dealerships and EchoPark stores.”

“Based on results experienced in the first half of the year and our forecast for the remainder of 2017, we are updating our earnings guidance. We currently project adjusted diluted earnings per share from continuing operations for 2017 to be between $1.85 and $1.95 per share ($1.49 and $1.59 per diluted share, on an unadjusted GAAP basis). This range includes the effect of projected EchoPark results and expansion. We are also now projecting an adjusted loss related to EchoPark for 2017 of between $0.29 and $0.33 per diluted share ($0.32 and $0.36 per diluted share, on an unadjusted GAAP basis). We will have additional comments on our guidance in our earnings call later today.”

Dividend

Sonic’s Board of Directors approved a quarterly dividend of $0.05 per share payable in cash for stockholders of record on September 15, 2017. The dividend will be payable on October 13, 2017.

Second 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: 48697046

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: 48697046

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. More information about EchoPark Automotive can be found at www.echopark.com.

Forward Looking Statements

Included herein are forward-looking statements, including statements with respect to our 2017 earnings expectations, our long-term strategy, the anticipated expansion of our EchoPark business and our franchised dealerships, and our expectation that the highly competitive retail landscape will continue and possibly intensify over the next several quarters. There are many factors that affect management’s views about future events and trends of the Company’s business. These factors involve risks and uncertainties that could cause actual results or trends to differ materially from management’s views, 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 ended December 31, 2016. The Company does not undertake any obligation to update forward-looking information, except as required under federal securities laws and the rules and regulations of the Securities and Exchange Commission (the “SEC”).

Non-GAAP Financial Measures

This press release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as adjusted net income from continuing operations and related earnings per diluted share, which exclude certain items disclosed in the attached financial tables. As required by SEC rules, the Company provides reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures. The Company believes that these non-GAAP financial measures improve the transparency of the Company’s disclosure, provide a meaningful presentation of the Company’s results from its core business operations excluding the impact of items not related to the Company’s ongoing core business operations, and improve the period-to-period comparability of the Company’s results from its core business operations.

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Results of Operations

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(In thousands, except per share and unit data)
Revenues:
New retail vehicles	$	1,247,318		$	1,269,843		$	2,394,699		$	2,419,280
Fleet vehicles		27,751			16,621			52,302			31,754
Total new vehicles		1,275,069			1,286,464			2,447,001			2,451,034
Used vehicles		641,891			622,186			1,276,364			1,220,540
Wholesale vehicles		40,765			38,245			87,076			82,620
Total vehicles		1,957,725			1,946,895			3,810,441			3,754,194
Parts, service and collision repair		361,113			351,329			713,156			697,384
Finance, insurance and other, net		86,908			84,088			169,971			165,361
Total revenues		2,405,746			2,382,312			4,693,568			4,616,939
Gross profit		360,618			353,305			710,965			698,455
Selling, general and administrative expenses		(293,931	)		(277,204	)		(586,165	)		(561,580	)
Impairment charges		(2,605	)		(151	)		(3,115	)		(151	)
Depreciation and amortization		(21,911	)		(18,905	)		(43,065	)		(37,374	)
Operating income (loss)		42,171			57,045			78,620			99,350
Other income (expense):
Interest expense, floor plan		(9,144	)		(6,690	)		(17,531	)		(13,126	)
Interest expense, other, net		(12,764	)		(12,205	)		(26,172	)		(24,544	)
Other income (expense), net		7			6			(14,495	)		110
Total other income (expense)		(21,901	)		(18,889	)		(58,198	)		(37,560	)
Income (loss) from continuing operations before taxes		20,270			38,156			20,422			61,790
Provision for income taxes for continuing operations - benefit (expense)		(7,956	)		(15,113	)		(8,128	)		(24,283	)
Income (loss) from continuing operations		12,314			23,043			12,294			37,507
Income (loss) from discontinued operations		(182	)		(221	)		(703	)		(61	)
Net income (loss)	$	12,132		$	22,822		$	11,591		$	37,446
Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations	$	0.27		$	0.50		$	0.27		$	0.81
Earnings (loss) per share from discontinued operations		—			—			(0.01	)		(0.01	)
Earnings (loss) per common share	$	0.27		$	0.50		$	0.26		$	0.80
Weighted average common shares outstanding		44,810			45,924			44,976			46,523
Gross Margin Data (Continuing Operations):
New retail vehicles		5.1%			5.2%			5.1%			5.1%
Fleet vehicles		(2.8%	)		0.9%			(1.9%	)		0.6%
Total new vehicles		4.9%			5.1%			4.9%			5.1%
Used vehicles		6.2%			5.9%			6.3%			6.3%
Wholesale vehicles		(4.7%	)		(4.8%	)		(3.5%	)		(3.5%	)
Parts, service and collision repair		47.9%			47.9%			48.0%			47.9%
Finance, insurance and other		100.0%			100.0%			100.0%			100.0%
Overall gross margin		15.0%			14.8%			15.1%			15.1%
SG&A Expenses (Continuing Operations):
Compensation	$	171,182		$	166,560		$	347,729		$	335,601
Advertising		15,344			15,499			30,602			30,847
Rent		19,110			18,508			37,598			37,228
Other		88,295			76,637			170,236			157,904
Total SG&A expenses	$	293,931		$	277,204		$	586,165		$	561,580
SG&A expenses as % of gross profit		81.5%			78.5%			82.4%			80.4%
Operating Margin %		1.8%			2.4%			1.7%			2.2%
Unit Data (Continuing Operations):
New retail units		32,466			33,229			62,336			63,385
Fleet units		682			553			1,307			1,002
Total new units		33,148			33,782			63,643			64,387
Used units		30,536			29,287			60,908			58,620
Wholesale units		7,783			7,212			16,090			15,635

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Per Share Data

	Three Months Ended June 30, 2017
			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		44,570	$	12,314				$	(182	)				$	12,132
Effect of participating securities:
Non-vested restricted stock				(9	)				—						(9	)
Basic earnings (loss) and shares		44,570	$	12,305		$	0.28	$	(182	)	$	(0.01	)	$	12,123		$	0.27
Effect of dilutive securities:
Stock compensation plans		240
Diluted earnings (loss) and shares		44,810	$	12,305		$	0.27	$	(182	)	$	—		$	12,123		$	0.27
Adjustments:
Impairment charges			$	2,605				$	—					$	2,605
Storm damage				4,618					—						4,618
Legal accruals and settlements				1,000					—						1,000
Lease exit adjustments				992					—						992
Total adjustments before taxes				9,215					—						9,215
Income tax effect of above adjustments				(3,617	)				—						(3,617	)
Effect of adjustments, net of income taxes			$	5,598		$	0.13	$	—		$	—		$	5,598		$	0.13
Adjusted:
Earnings (loss) and diluted earnings (loss) per share (1)			$	17,912		$	0.40	$	(182	)	$	—		$	17,730		$	0.40
(1)    Net loss attributable to EchoPark® operations was $0.07 per fully diluted share in the three months ended June 30, 2017.
	Three Months Ended June 30, 2016
			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		45,731	$	23,043				$	(221	)				$	22,822
Effect of participating securities:
Non-vested restricted stock				(13	)				—						(13	)
Basic earnings (loss) and shares		45,731	$	23,030		$	0.50	$	(221	)	$	—		$	22,809		$	0.50
Effect of dilutive securities:
Stock compensation plans		193
Diluted earnings (loss) and shares (2)		45,924	$	23,030		$	0.50	$	(221	)	$	—		$	22,809		$	0.50
(2)    Net loss attributable to EchoPark® operations was $0.04 per fully diluted share in the three months ended June 30, 2016.

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Per Share Data

	Six Months Ended June 30, 2017
			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		44,680	$	12,294				$	(703	)				$	11,591
Effect of participating securities:
Non-vested restricted stock				(9	)				—						(9	)
Basic earnings (loss) and shares		44,680	$	12,285		$	0.27	$	(703	)	$	(0.01	)	$	11,582		$	0.26
Effect of dilutive securities:
Stock compensation plans		296
Diluted earnings (loss) and shares		44,976	$	12,285		$	0.27	$	(703	)	$	(0.01	)	$	11,582		$	0.26
Adjustments:
Impairment charges			$	3,115				$	—					$	3,115
Storm damage				7,000					—						7,000
Legal accruals and settlements				(149	)				—						(149	)
Lease exit adjustments				992					—						992
Loss on debt extinguishment				15,268					—						15,268
Total adjustments before taxes				26,226					—						26,226
Income tax effect of above adjustments				(10,294	)				—						(10,294	)
Effect of adjustments, net of income taxes			$	15,932		$	0.36	$	—		$	(0.01	)	$	15,932		$	0.35
Adjusted:
Earnings (loss) and diluted earnings (loss) per share (3)			$	28,226		$	0.63	$	(703	)	$	(0.02	)	$	27,523		$	0.61
(3)    Net loss attributable to EchoPark® operations was $0.15 per fully diluted share in the six months ended June 30, 2017.
	Six Months Ended June 30, 2016
			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		46,340	$	37,507				$	(61	)				$	37,446
Effect of participating securities:
Non-vested restricted stock				(21	)				—						(21	)
Basic earnings (loss) and shares		46,340	$	37,486		$	0.81	$	(61	)	$	—		$	37,425		$	0.81
Effect of dilutive securities:
Stock compensation plans		183
Diluted earnings (loss) and shares		46,523	$	37,486		$	0.81	$	(61	)	$	(0.01	)	$	37,425		$	0.80
Adjustments:
Storm damage			$	6,043				$	—					$	6,043
Lease exit adjustments				—					(523	)					(523	)
Total adjustments before taxes				6,043					(523	)					5,520
Income tax effect of above adjustments				(2,345	)				203						(2,142	)
Effect of adjustments, net of income taxes			$	3,698		$	0.08	$	(320	)	$	—		$	3,378		$	0.08
Adjusted:
Earnings (loss) and diluted earnings (loss) per share (4)			$	41,205		$	0.89	$	(381	)	$	(0.01	)	$	40,824		$	0.88
(4)    Net loss attributable to EchoPark® operations was $0.09 per fully diluted share in the six months ended June 30, 2016.

Sonic Automotive, Inc.

Results of Operations (Unaudited)

New Vehicles

	Three Months Ended June 30,				Better / (Worse)
	2017		2016		Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	1,275,069	$	1,286,464	$	(11,395	)		(0.9	%)
Gross profit	$	62,522	$	65,866	$	(3,344	)		(5.1	%)
Unit sales		33,148		33,782		(634	)		(1.9	%)
Revenue per unit	$	38,466	$	38,081	$	385			1.0	%
Gross profit per unit	$	1,886	$	1,950	$	(64	)		(3.3	%)
Gross profit as a % of revenue		4.9%		5.1%		(20	) bps
	Six Months Ended June 30,				Better / (Worse)
	2017		2016		Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	2,447,001	$	2,451,034	$	(4,033	)		(0.2	%)
Gross profit	$	120,800	$	124,290	$	(3,490	)		(2.8	%)
Unit sales		63,643		64,387		(744	)		(1.2	%)
Revenue per unit	$	38,449	$	38,067	$	382			1.0	%
Gross profit per unit	$	1,898	$	1,930	$	(32	)		(1.7	%)
Gross profit as a % of revenue		4.9%		5.1%		(20	) bps
	Three Months Ended June 30,				Better / (Worse)
	2017		2016		Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	1,258,531	$	1,286,464	$	(27,933	)		(2.2	%)
Gross profit	$	61,477	$	65,842	$	(4,365	)		(6.6	%)
Unit sales		32,767		33,782		(1,015	)		(3.0	%)
Revenue per unit	$	38,408	$	38,081	$	327			0.9	%
Gross profit per unit	$	1,876	$	1,949	$	(73	)		(3.7	%)
Gross profit as a % of revenue		4.9%		5.1%		(20	) bps
	Six Months Ended June 30,				Better / (Worse)
	2017		2016		Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	2,416,646	$	2,451,034	$	(34,388	)		(1.4	%)
Gross profit	$	119,034	$	124,217	$	(5,183	)		(4.2	%)
Unit sales		62,955		64,387		(1,432	)		(2.2	%)
Revenue per unit	$	38,387	$	38,067	$	320			0.8	%
Gross profit per unit	$	1,891	$	1,929	$	(38	)		(2.0	%)
Gross profit as a % of revenue		4.9%		5.1%		(20	) bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Used Vehicles

	Three Months Ended June 30,				Better / (Worse)
	2017		2016		Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	641,891	$	622,186	$	19,705			3.2	%
Gross profit	$	40,035	$	36,969	$	3,066			8.3	%
Unit sales		30,536		29,287		1,249			4.3	%
Revenue per unit	$	21,021	$	21,244	$	(223	)		(1.0	%)
Gross profit per unit	$	1,311	$	1,262	$	49			3.9	%
Gross profit as a % of revenue		6.2%		5.9%		30	bps
	Six Months Ended June 30,				Better / (Worse)
	2017		2016		Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	1,276,364	$	1,220,540	$	55,824			4.6	%
Gross profit	$	80,867	$	77,499	$	3,368			4.3	%
Unit sales		60,908		58,620		2,288			3.9	%
Revenue per unit	$	20,956	$	20,821	$	135			0.6	%
Gross profit per unit	$	1,328	$	1,322	$	6			0.5	%
Gross profit as a % of revenue		6.3%		6.3%		0	bps
	Three Months Ended June 30,				Better / (Worse)
	2017		2016		Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	618,082	$	621,748	$	(3,666	)		(0.6	%)
Gross profit	$	37,209	$	35,919	$	1,290			3.6	%
Unit sales		29,388		29,267		121			0.4	%
Revenue per unit	$	21,032	$	21,244	$	(212	)		(1.0	%)
Gross profit per unit	$	1,266	$	1,227	$	39			3.2	%
Gross profit as a % of revenue		6.0%		5.8%		20	bps
	Six Months Ended June 30,				Better / (Worse)
	2017		2016		Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	1,233,473	$	1,220,103	$	13,370			1.1	%
Gross profit	$	75,495	$	74,910	$	585			0.8	%
Unit sales		58,846		58,600		246			0.4	%
Revenue per unit	$	20,961	$	20,821	$	140			0.7	%
Gross profit per unit	$	1,283	$	1,278	$	5			0.4	%
Gross profit as a % of revenue		6.1%		6.1%		0	bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Wholesale Vehicles

	Three Months Ended June 30,						Better / (Worse)
	2017			2016			Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	40,765		$	38,245		$	2,520			6.6	%
Gross profit (loss)	$	(1,917	)	$	(1,839	)	$	(78	)		(4.2	%)
Unit sales		7,783			7,212			571			7.9	%
Revenue per unit	$	5,238		$	5,303		$	(65	)		(1.2	%)
Gross profit (loss) per unit	$	(246	)	$	(255	)	$	9			3.5	%
Gross profit (loss) as a % of revenue		(4.7%	)		(4.8%	)		10	bps
	Six Months Ended June 30,						Better / (Worse)
	2017			2016			Change			% Change
	(In thousands, except units and per unit data)
Reported:
Revenue	$	87,076		$	82,620		$	4,456			5.4	%
Gross profit (loss)	$	(3,087	)	$	(2,917	)	$	(170	)		(5.8	%)
Unit sales		16,090			15,635			455			2.9	%
Revenue per unit	$	5,412		$	5,284		$	128			2.4	%
Gross profit (loss) per unit	$	(192	)	$	(187	)	$	(5	)		(2.7	%)
Gross profit (loss) as a % of revenue		(3.5%	)		(3.5%	)		0	bps
	Three Months Ended June 30,						Better / (Worse)
	2017			2016			Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	39,524		$	38,246		$	1,278			3.3	%
Gross profit (loss)	$	(1,909	)	$	(1,840	)	$	(69	)		(3.8	%)
Unit sales		7,577			7,212			365			5.1	%
Revenue per unit	$	5,216		$	5,303		$	(87	)		(1.6	%)
Gross profit (loss) per unit	$	(252	)	$	(255	)	$	3			1.2	%
Gross profit (loss) as a % of revenue		(4.8%	)		(4.8%	)		0	bps
	Six Months Ended June 30,						Better / (Worse)
	2017			2016			Change			% Change
	(In thousands, except units and per unit data)
Same Store:
Revenue	$	84,784		$	82,599		$	2,185			2.6	%
Gross profit (loss)	$	(2,994	)	$	(2,915	)	$	(79	)		(2.7	%)
Unit sales		15,697			15,630			67			0.4	%
Revenue per unit	$	5,401		$	5,285		$	116			2.2	%
Gross profit (loss) per unit	$	(191	)	$	(187	)	$	(4	)		(2.1	%)
Gross profit (loss) as a % of revenue		(3.5%	)		(3.5%	)		0	bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

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

	Three Months Ended June 30,				Better / (Worse)
	2017		2016		Change			% Change
	(In thousands)
Reported:
Revenue
Customer pay	$	139,194	$	149,248	$	(10,054	)		(6.7	%)
Warranty		72,661		54,812		17,849			32.6	%
Wholesale parts		42,806		44,021		(1,215	)		(2.8	%)
Internal, sublet and other		106,452		103,248		3,204			3.1	%
Total	$	361,113	$	351,329	$	9,784			2.8	%
Gross profit
Customer pay	$	74,344	$	81,323	$	(6,979	)		(8.6	%)
Warranty		40,319		29,449		10,870			36.9	%
Wholesale parts		7,331		7,797		(466	)		(6.0	%)
Internal, sublet and other		51,076		49,652		1,424			2.9	%
Total	$	173,070	$	168,221	$	4,849			2.9	%
Gross profit as a % of revenue
Customer pay		53.4%		54.5%		(110	) bps
Warranty		55.5%		53.7%		180	bps
Wholesale parts		17.1%		17.7%		(60	) bps
Internal, sublet and other		48.0%		48.1%		(10	) bps
Total		47.9%		47.9%		0	bps
	Six Months Ended June 30,				Better / (Worse)
	2017		2016		Change			% Change
	(In thousands)
Reported:
Revenue
Customer pay	$	277,328	$	296,642	$	(19,314	)		(6.5	%)
Warranty		142,579		112,371		30,208			26.9	%
Wholesale parts		86,087		89,331		(3,244	)		(3.6	%)
Internal, sublet and other		207,162		199,040		8,122			4.1	%
Total	$	713,156	$	697,384	$	15,772			2.3	%
Gross profit
Customer pay	$	147,784	$	161,680	$	(13,896	)		(8.6	%)
Warranty		78,989		60,775		18,214			30.0	%
Wholesale parts		14,881		15,738		(857	)		(5.4	%)
Internal, sublet and other		100,760		96,029		4,731			4.9	%
Total	$	342,414	$	334,222	$	8,192			2.5	%
Gross profit as a % of revenue
Customer pay		53.3%		54.5%		(120	) bps
Warranty		55.4%		54.1%		130	bps
Wholesale parts		17.3%		17.6%		(30	) bps
Internal, sublet and other		48.6%		48.2%		40	bps
Total		48.0%		47.9%		10	bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

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

	Three Months Ended June 30,				Better / (Worse)
	2017		2016		Change			% Change
	(In thousands)
Same Store:
Revenue
Customer pay	$	138,408	$	149,246	$	(10,838	)		(7.3	%)
Warranty		72,325		54,812		17,513			32.0	%
Wholesale parts		42,478		44,021		(1,543	)		(3.5	%)
Internal, sublet and other		103,273		103,231		42			0.0	%
Total	$	356,484	$	351,310	$	5,174			1.5	%
Gross profit
Customer pay	$	73,942	$	81,322	$	(7,380	)		(9.1	%)
Warranty		40,129		29,543		10,586			35.8	%
Wholesale parts		7,239		7,797		(558	)		(7.2	%)
Internal, sublet and other		49,803		49,470		333			0.7	%
Total	$	171,113	$	168,132	$	2,981			1.8	%
Gross profit as a % of revenue
Customer pay		53.4%		54.5%		(110	) bps
Warranty		55.5%		53.9%		160	bps
Wholesale parts		17.0%		17.7%		(70	) bps
Internal, sublet and other		48.2%		47.9%		30	bps
Total		48.0%		47.9%		10	bps
	Six Months Ended June 30,				Better / (Worse)
	2017		2016		Change			% Change
	(In thousands)
Same Store:
Revenue
Customer pay	$	275,827	$	296,640	$	(20,813	)		(7.0	%)
Warranty		141,914		112,371		29,543			26.3	%
Wholesale parts		85,705		89,331		(3,626	)		(4.1	%)
Internal, sublet and other		202,482		199,023		3,459			1.7	%
Total	$	705,928	$	697,365	$	8,563			1.2	%
Gross profit
Customer pay	$	147,031	$	161,679	$	(14,648	)		(9.1	%)
Warranty		78,568		60,825		17,743			29.2	%
Wholesale parts		14,776		15,739		(963	)		(6.1	%)
Internal, sublet and other		98,216		95,538		2,678			2.8	%
Total	$	338,591	$	333,781	$	4,810			1.4	%
Gross profit as a % of revenue
Customer pay		53.3%		54.5%		(120	) bps
Warranty		55.4%		54.1%		130	bps
Wholesale parts		17.2%		17.6%		(40	) bps
Internal, sublet and other		48.5%		48.0%		50	bps
Total		48.0%		47.9%		10	bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

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

	Three Months Ended June 30,				Better / (Worse)
	2017		2016		Change		% Change
	(In thousands, except per unit data)
Reported:
Revenue	$	86,908	$	84,088	$	2,820		3.4	%
Gross profit per retail unit (excludes fleet)	$	1,379	$	1,345	$	34		2.5	%
	Six Months Ended June 30,				Better / (Worse)
	2017		2016		Change		% Change
	(In thousands, except per unit data)
Reported:
Revenue	$	169,971	$	165,361	$	4,610		2.8	%
Gross profit per retail unit (excludes fleet)	$	1,379	$	1,355	$	24		1.8	%
	Three Months Ended June 30,				Better / (Worse)
	2017		2016		Change		% Change
	(In thousands, except per unit data)
Same Store:
Revenue	$	84,457	$	83,884	$	573		0.7	%
Gross profit per retail unit (excludes fleet)	$	1,374	$	1,342	$	32		2.4	%
	Six Months Ended June 30,				Better / (Worse)
	2017		2016		Change		% Change
	(In thousands, except per unit data)
Same Store:
Revenue	$	165,318	$	164,736	$	582		0.4	%
Gross profit per retail unit (excludes fleet)	$	1,372	$	1,350	$	22		1.6	%

Sonic Automotive, Inc.

Results of Operations (Unaudited)

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

	Three Months Ended June 30,					Better / (Worse)
	2017			2016		Change			% Change
	(In thousands)
Reported:
Compensation	$	171,182		$	166,560	$	(4,622	)		(2.8	%)
Advertising		15,344			15,499		155			1.0	%
Rent		19,110			18,508		(602	)		(3.3	%)
Other		88,295			76,637		(11,658	)		(15.2	%)
Total SG&A expenses	$	293,931		$	277,204	$	(16,727	)		(6.0	%)
Adjustments:
Storm damage	$	(4,618	)	$	—
Legal accruals and settlements		(1,000	)		—
Lease exit adjustments		(992	)		—
Total SG&A adjustments	$	(6,610	)	$	—
Adjusted:
Total adjusted SG&A expenses	$	287,321		$	277,204	$	(10,117	)		(3.6	%)
Reported:
SG&A expenses as a % of gross profit
Compensation		47.5%			47.1%		(40	) bps
Advertising		4.3%			4.4%		10	bps
Rent		5.3%			5.2%		(10	) bps
Other		24.4%			21.8%		(260	) bps
Total SG&A expenses as a % of gross profit		81.5%			78.5%		(300	) bps
Adjustments:
Storm damage		(1.2%	)		0.0%
Legal accruals and settlements		(0.3%	)		0.0%
Lease exit adjustments		(0.3%	)		0.0%
Total effect of adjustments		(1.8%	)		0.0%
Adjusted:
Total adjusted SG&A as a % of gross profit		79.7%			78.5%		(120	) bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Selling, General and Administrative (“SG&A”) Expenses
	Six Months Ended June 30,						Better / (Worse)
	2017			2016			Change			% Change
	(In thousands)
Reported:
Compensation	$	347,729		$	335,601		$	(12,128	)		(3.6	%)
Advertising		30,602			30,847			245			0.8	%
Rent		37,598			37,228			(370	)		(1.0	%)
Other		170,236			157,904			(12,332	)		(7.8	%)
Total SG&A expenses	$	586,165		$	561,580		$	(24,585	)		(4.4	%)
Adjustments:
Storm damage	$	(7,000	)	$	(6,043	)
Legal accruals and settlements		149			—
Lease exit adjustments		(992	)		—
Total SG&A adjustments	$	(7,843	)	$	(6,043	)
Adjusted:
Total adjusted SG&A expenses	$	578,322		$	555,537		$	(22,785	)		(4.1	%)
Reported:
SG&A expenses as a % of gross profit
Compensation		48.9%			48.0%			(90	) bps
Advertising		4.3%			4.4%			10	bps
Rent		5.3%			5.3%			0	bps
Other		23.9%			22.7%			(120	) bps
Total SG&A expenses as a % of gross profit		82.4%			80.4%			(200	) bps
Adjustments:
Storm damage		(1.0%	)		(0.9%	)
Legal accruals and settlements		0.1%			0.0%
Lease exit adjustments		(0.2%	)		0.0%
Total effect of adjustments		(1.1%	)		(0.9%	)
Adjusted:
Total adjusted SG&A as a % of gross profit		81.3%			79.5%			(180	) bps

###

Contact: Heath Byrd, Chief Financial Officer (704) 566-2400

C.G. Saffer, Vice President and Chief Accounting Officer (704) 566-2439

EX-99.2

Q2 2017 Investor Presentation July 28, 2017 Exhibit 99.2

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, earnings expectations, anticipated 2017 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 ending December 31, 2017. 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 ended December 31, 2016. 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 COMPANY OVERVIEW STRATEGIC FOCUS FINANCIAL REVIEW OPERATIONS REVIEW SUMMARY & OUTLOOK

COMPANY OVERVIEW

OVERVIEW – FRANCHISED GEOGRAPHIC Based in Charlotte, NC 105 Stores, 25 Brands, 18 Collision Repair Centers Platforms in Major Metro Markets

OVERVIEW – ECHOPARK® GEOGRAPHIC Colorado Springs - Opened Q2 2017 Have purchased property in the following markets (some are under construction): Dallas/Ft. Worth San Antonio Houston Austin Carolinas In Process of Converting Jacksonville AutoMatch Store Also have property in Savannah, GA that is being developed.

Note: Percentages are percent of total revenue for FY 2016. Concentration in Major Metro Markets

Revenue streams and brand mix offer attractive diversification across the automotive retail space. Note: Percentages are for FY 2016. ,

STRATEGIC FOCUS

STRATEGIC FOCUS Growth EchoPark® One Sonic-One Experience Acquisitions & Open Points Own Our Properties Return Capital to Shareholders Share Repurchases Dividends

STRATEGIC FOCUS EchoPark® Six Locations Open In Colorado Thornton Hub Centennial Highlands Ranch Littleton Stapleton Colorado Springs Texas Expansion Expect openings in 2017/2018 Florida AutoMatch Transition Acquiring Property in the Carolinas Expect openings in 2018 EP Revenue FY 2016 revenue of $129M 68% YOY revenue growth

STRATEGIC FOCUS ONE SONIC-ONE EXPERIENCE (OSOE) Goals 1 Associate, 1 Price, 1 Hour Improve Transparency; Increase Trust Operational Efficiencies Grow Market Share Feed Fixed Operations Technology Being Introduced into Additional Markets (Charlotte was Pilot) CRM, Desking & Appraisal

STRATEGIC FOCUS ACQUISITIONS & OPEN POINTS Open Points Mercedes-Benz in Dallas Market Estimated Annual Revenues >$100M Operational in Q3 2016 Nissan in TN Market Estimated Annual Revenues >$30M Operational in Q4 2016 Audi in Pensacola Market Estimated Annual Revenues >$50M Operational in Q2 2017 Exploring Acquisition and Open Point Opportunities in Other Markets

STRATEGIC FOCUS OWN OUR PROPERTIES % of Properties Owned Increased Equity in Properties to $281M in 2016

STRATEGIC FOCUS RETURN CAPITAL TO SHAREHOLDERS Quarterly Dividend at $0.05/Share in Q1 & Q2 of 2017 Acquired 11.2% of OS in 2016, 3.0% of OS in 2017 YTD New Share Count = 43.8M Down from High of 53.2M (Dec 2012) Dividends Declared of $9.1M in 2016 (000's) (000's) (000's) Shares $/Share $ Availability EOY - 2016 $45,032.523000000001 Q1 Activity 177.53200000000001 $22.509677128630329 $3,996.1880000000001 -3,996.1880000000001 Additional BOD Authorization ,100,000 Q2 Activity 1,182.6500000000001 $18.561160952099097 $21,951.357 ,-21,951.357 Total 2017 Activity 1,360.182 $19.076524318069197 $25,947.544999999998 $,119,084.97799999999

OUTSTANDING SHARE COUNT (in millions) Note – Balances are amounts outstanding at the end of the applicable period. These amounts exclude the effect of share dilution from convertible notes and equity grants outstanding. STRATEGIC FOCUS RETURN CAPITAL TO SHAREHOLDERS

Q2 2017 FINANCIAL REVIEW

Q2 2017 FINANCIAL REVIEW FRANCHISED SEGMENT

FRANCHISED SEGMENT Q2 2017 RESULTS – Q2 2017 results are adjusted – See appendix for reconciliation to GAAP amounts. B/(W) than Q2 2016 (1) (amounts in millions, except per share data) Q2 2017 (1) $ % Revenue $2,356.6915907800003 $3.8519750200100242 .163716004874% Gross Profit $355.29032416501303 $5.3475639383430247 1.528125323947% SG&A $278.43906854999898 $-6.7488868228159848 -2.484037803616% SG&A as % of Gross 0.78369448761199356 -80 bps Depreciation $20.602791739999997 $-2.5040704199998944 -0.1383562062604255 Operating Profit $56.248464274998902 $-3.7548495644674986 -6.257736988516% Interest & Other $-21.363104960000001 $-2.877822619999999 -0.15568183201469016 Pretax $34.885359314997096 $-6.6326721844706986 -0.15975401397717329 Diluted EPS $0.47 $-7.0000000000000062E-2 -0.12962962962962973 Diluted EPS Keyed $0.47 $-7.0000000000000062E-2 -0.12962962962962973 CY 0.47 PY 0.54 change -7.0000000000000062E-2 % -0.12962962962962973

Q2 2017 FINANCIAL REVIEW ECHOPARK® SEGMENT

ECHOPARK® SEGMENT Q2 2017 RESULTS – Q2 2017 results are adjusted – See appendix for reconciliation to GAAP amounts. B/(W) than Q2 2016 (1) (amounts in millions, except per share, unit and per unit data) Q2 2017 (1) $ % Revenue $49.054388700000004 $19.581686550000004 0.66440078857852558 Gross Profit $5.3279714299999901 $1.9661351899999904 0.58483966785960706 Operating Profit $-4.86275681000002 $-1.9049007100000299 -0.64401399040339935 Interest & Other $-0.53789202000000003 $-0.13411134 -0.33213907114129376 Pretax $-5.4006488300000193 $-2.0390120500000393 -0.60655334988334209 Diluted EPS $-7.0000000000000007E-2 $-3.0000000000000006E-2 -0.75000000000000011 Retail Units 2,049 913 0.80369718309859151 GPU $874.96403123474374 $-,166.61652334272117 -0.15996508633968501 F&I ($/unit) $1,040.9519131283555 $-99.404662575869907 -8.7169806965% Diluted EPS Keyed $-7.0000000000000007E-2 $-3.0000000000000006E-2 -0.75000000000000011 CY -7.0000000000000007E-2 PY -0.04 Change -3.0000000000000006E-2 % Change -0.75000000000000011

ECHOPARK® - COLORADO STORES CASH FLOW EchoPark Colorado was cash flow positive in Q2 $215,000 Q2 2017 (amounts in thousands, except unit and per unit data) Colorado Stores Retail Units 1,728 Used GPU $888.22682870370318 F&I GPU $1,017.1155671296297 Total Gross $4,576.8231700000006 Cash Flow $215.10794214000117

Q2 2017 FINANCIAL REVIEW TOTAL ENTERPRISE

CONSOLIDATED Q2 2017 RESULTS – Q2 2017 results are adjusted – See appendix for reconciliation to GAAP amounts. B/(W) than Q2 2016 (1) (amounts in millions, except per share data) Q2 2017 (1) $ % Revenue $2,405.7459794800002 $23.433661570010241 .983651949992% Gross Profit $360.61829559501399 $7.313699128345994 2.700832090748% SG&A $287.32116615999797 $-10.116666622815014 -3.649531894217% SG&A as % of Gross 0.79674594902602758 -,120 bps Depreciation $21.911422690000002 $-3.0073268399999034 -0.15908334700915555 Operating Profit $51.38570746500001 $-5.6597502744661909 -9.921474029212% Interest & Other $-21.900996979999999 $-3.0119339600000021 -0.1594538573359052 Continuing Ops: Profit (after tax) $17.912448484999299 $-5.1303148744693026 -0.22264321316137559 Diluted EPS $0.4 $-9.9999999999999978E-2 -0.19999999999999996 KEYED CY $0.4 PY $0.5 Change $-9.9999999999999978E-2 % -0.19999999999999996

Q2 2017 REVENUE & GROSS PROFIT B/(W) than Q2 2016 (amounts in millions, except units or per unit data) Q2 2017 $ % New Retail Revenue $1,247.3184919600001 $-22.524264700000174 -1.773783768255% Used Retail Revenue $641.89062597000202 $19.705123120001982 3.167081687011% Fixed Operations Revenue $361.11303230999897 $9.7839959200000166 2.784852632886% F&I Revenue $86.907928490000216 $2.8198443699997151 3.353441096334% Total Revenue $2,405.7459794800002 $23.433661570010241 .983651949992% New Retail Gross $63.292775249999799 $-2.4315657599989065 -3.699642663026% - Units 32,466 -,763 -2.296187065515% - GPU $1,949.5094945481364 $-28.411628868117759 -1.436438922248% Used Retail Gross $40.034966765 $3.0666111383334935 8.295232737161% - Units 30,536 1,249 4.264690818452% - GPU $1,311.743635381189 $48.795686081687563 3.865682511568% F&I Gross $86.907928490000216 $2.8198443699997151 3.353441096334% - GPU $1,379.4471364401163 $34.382127162483357 2.556168432405% Fixed Operations Gross $173.06991961 $4.8485301100000218 2.882231637969% Total Gross $360.61829559501399 $7.313699128345994 2.700832090748%

Q2 2017 ADJUSTED(1) SG&A TO GROSS 79.7% 78.5% – Q2 2017 is adjusted – See appendix for reconciliation to GAAP amounts.

Q2 2017 ADJUSTED(1) SG&A TO GROSS – Q2 2017 is adjusted – See appendix for reconciliation to GAAP amounts.

Q2 2017 INTEREST EXPENSE Floor Plan Increase Due to Higher Rates and Higher New Balance B/(W) than Q2 2016 (amounts in millions) Q2 2017 $ % Floor Plan Interest Expense $9.1445464099999914 $-2.4546059599999919 -0.36690998647080508 Interest Expense, Other $12.763516619999999 $-0.55823385999999842 -4.573706901978% Total Interest Expense $21.90806302999999 $-3.0128398199999902 -0.15944981366536554

2017 CAP EX (amounts in millions) YTD Q2 2017 Estimated FY 2017 Real Estate & Facility Related $99.6 $229.9 All Other Cap Ex 21.6 18.3 Subtotal $121.19999999999999 $248.20000000000002 Less: Mortgage Funding -32.5 -55 Total Cash Used – Cap Ex $88.699999999999989 $193.20000000000002

DEBT COVENANTS Compliant with all Covenants Covenant Q2 2017 Liquidity Ratio >= 1.05 1.1399999999999999 Fixed Charge Coverage Ratio >= 1.20 1.95 Total Lease Adjusted Leverage Ratio <= 5.75 4.38

OPERATIONS REVIEW

NEW VEHICLE RETAIL SAME STORE - Franchised Retail Units Apr May Jun Total 2017 10,103 11,637 10,346 32,086 2016 10,919 11,865 10,445 33,229 B/(W) -,816 -,228 -99 -1,143 Q2 2017 Q2 2016 B/(W) Retail Volume 32,086 33,229 -3.439766469% Selling Price $38,360.457572461513 $38,214.895322158358 .3809044852% Gross Margin % 5.6% 5.2% -10 bps GPU $1,940.121557688276 $1,977.1925998374616 $-37.18044406863396 Gross Profit (in millions) $62.247230029998605 $65.700132899999005 -5.2555492928% SAAR (in millions) 16.600000000000001 17.100000000000001 -2.9239766082% SAAR - Keyed 16.600000000000001 17.100000000000001 -2.9% -0.5 -2.9239766081871343E-2

NEW VEHICLE SAAR 2nd QTR Down 2.9% YTD 2017 – 16.9M Full Year 2016 – 17.4M Full Year 2015 – 17.4M

NEW VEHICLE SAAR - RETAIL

VEHICLE DAYS’ SUPPLY

NEW VEHICLE NEW VEHICLE – GROSS & UNIT TREND Continuing Operations - Franchised

NEW VEHICLE NEW VEHICLE – GROSS PER UNIT Continuing Operations - Franchised

USED VEHICLE RETAIL Franchised Continuing: Same Store: Q2 2017 Q2 2016 B/(W) Retail Volume 28,487 28,151 1.1935632837% GPU $1,342.4427094815073 $1,271.184686748833 $71.258022732674362 Used to New 0.88 0.85 3.0000000000000027E-2 Vehicles/Store/Mth (105/102 stores) 90.43492063492063 91.996732026143789 -1.5618113912231593 Number of Stores 105 102 0.0% Vehicles/Store/Mth 90.43492063492063 91.996732026143789 Q2 2017 Q2 2016 B/(W) Retail Volume 28,067 28,151 -0.2983908209% GPU $1,283.812473723588 $1,228.6009619551669 $54.480285417191908 Used to New 0.87 0.85 2.0000000000000018E-2 Vehicles/Store/Mth (102 stores) 91.722222222222214 91.996732026143789 -0.27450980392157476 Number of Stores 102 102 0.0% Vehicles/Store/Mth 91.722222222222214 91.996732026143789

* - Used Related Gross = (Used Gross + F&I + Reconditioning) ($’s in millions) USED VEHICLE – GROSS TREND Continuing Operations - Franchised

USED VEHICLE GROSS CONTRIBUTION Continuing Operations - Franchised Front End Gross and F&I F&I and Higher GPU is Supporting Front End Gross Growth (in millions) Apr May Jun Total 2017 $25.939812007872501 $26.905302557153838 $25.011024994288018 $77.856139559314357 2016 25.350713645404781 25.513975578019469 22.888169655372099 73.752858878796346 B/(W) $0.58909836246771974 $1.3913269791343694 $2.1228553389159188 $4.103280680518008

F&I F&I – GROSS & PUR TREND Continuing Operations - Franchised All Time Record PUR

FIXED OPERATIONS ($’s in millions) FIXED OPERATIONS – GROSS TREND Continuing Operations – Franchised All-Time Quarterly Record

FIXED OPS Franchised Continuing: Same Store: ($ in millions) Q2 2017 Q2 2016 B/(W) Revenue $358.15790809999902 $349.081373339999 2.6001200445% Gross Profit $171.59596108 $167.32566605 2.5520860791% Q2 2017 Q2 2016 B/(W) Revenue $354.39144368999899 $349.081373339999 1.5211554542% Gross Profit $170.07747974 $167.24857963999997 1.6914344541%

SUMMARY & OUTLOOK EchoPark Continues Expansion – Ramp Up For 2018 – Additional 15 Stores San Antonio Dallas / Fort Worth Houston Austin Carolinas Georgia Houston Still Affecting Overall Performance Continuing to Challenge Cost Structure to Gain Efficiencies Used Vehicle Valuations Fairly Consistent - Slight Margin Pressure Fixed Operations Stable – Expect Growth to Continue Update of Earnings Guidance: Projected Adjusted Diluted EPS from Continuing Ops for 2017 of $1.85 - $1.95 Per Share ($1.49 to $1.59, on an Unadjusted GAAP basis) Range Includes Effect of Projected EchoPark® Results and Expansion Projecting EchoPark Adjusted Loss for 2017 of $0.29 to $0.33 Per Share ($0.32 to $0.36, on an Unadjusted GAAP basis)

APPENDIX

NON-GAAP RECONCILIATIONS (amounts in thousands) 2009 2010 2011 2012 2013 2014 2015 2016 Net Income $31,548 $89,929 $76,254 $89,101 $81,618 $97,217 $86,311 $93,193 Non-Floorplan Interest 67,735 68,604 63,576 58,453 55,356 52,269 49,524 48,034 Depreciation & Amortization 57,036 45,827 51,164 52,616 58,139 62,161 72,130 81,034 Income Taxes ,-53,900 ,-19,745 46,907 47,648 43,386 62,346 55,962 59,899 Stock Comp 1,931 2,814 3,698 5,160 7,208 7,675 9,814 11,165 Lease Exit 33,013 4,266 4,384 4,286 2,915 302 1,848 1,386 Impairment 30,038 249 1,151 950 9,872 6,594 17,955 8,063 Loss (Gain) on Debt Extinguishment 6,745 7,665 1,107 19,713 28,238 0 0 -6 Loss (Gain) on Dealership Disposal 102 -2,615 386 ,-10,343 457 ,-11,279 -2,748 48 Adjusted EBITDA $,174,248 $,196,994 $,248,627 $,267,584 $,287,189 $,277,285 $,290,796 $,302,816

NON-GAAP RECONCILIATIONS

NON-GAAP RECONCILIATIONS

NON-GAAP RECONCILIATIONS

NON-GAAP RECONCILIATIONS

NON-GAAP RECONCILIATIONS

NON-GAAP RECONCILIATIONS

NON-GAAP RECONCILIATIONS

NON-GAAP RECONCILIATIONS

NON-GAAP RECONCILIATIONS

NON-GAAP RECONCILIATIONS – ECHOPARK® – Q2 2017 results are adjusted – See appendix for reconciliation to GAAP amounts. Total EchoPark EchoPark Only AutoMatch Only (amounts in millions, except unit and per unit data) Q2 2017 (1) Q2 2017 Q2 2017 Revenue $49.054388700000004 $41.239478210000001 $7.8149104899999999 Gross Profit $5.3279714299999901 $4.6759631699999931 $0.65200825999999801 Operating Profit $-4.86275681000002 $-3.5494931000000198 $-1.31326371 Interest & Other $-0.53789202000000003 $-0.45233101999999997 $-8.5561000000000012E-2 Pretax $-5.4006488300000193 $-4.0018241200000197 $-1.39882471 Retail Units 2,049 1,728 321 GPU $874.96403123474374 $887.94326388888317 $805.0945171339564 F&I ($/unit) $1,040.9519131283555 $1,074.7718171296297 $858.89336448598135 Diluted EPS Keyed CY -7.0000000000000007E-2 PY -0.05 Change -2.0000000000000004E-2 % Change 0.40000000000000008